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1) Luker Corporation uses a process costing system. The company had $174,500 of beginning Finished Goods Inventory on October 1. It transferred in $851,000 of goods completed during the period. The ending Finished Goods Inventory balance on October 31 was $172,200. The entry to account for the cost of goods sold in October is:

Debit Cost of Goods Sold $851,000; credit Finished Goods Inventory $851,000.

Debit Cost of Goods Sold $853,300; credit Work in Process Inventory $853,300.

Debit Finished Goods Inventory $851,000; credit Work in Process Inventory $851,000.

Debit Finished Goods Inventory $172,200; credit Cost of Goods Sold $172,200.

Debit Cost of Goods Sold $853,300; credit Finished Goods Inventory $853,300.

2) A company uses the weighted-average method for inventory costing. At the end of the period, 19,000 units were in the ending Work in Process inventory and are 100% complete for materials and 68% complete for conversion. The equivalent costs per unit are materials, $2.58, and conversion $2.20. Compute the cost that would be assigned to the ending Work in Process inventory for the period.

$77,444.

$151,620.

$69,218.

$118,788.

$103,102.

3) Dazzle, Inc. produces beads for jewelry making use. The following information summarizes production operations for June. The journal entry to record June production activities for direct material usage is:

Direct materials used	$88,000
Direct labor used	161,000
Predetermined overhead rate (based on direct labor)	150%
Goods transferred to finished goods	433,000
Cost of goods sold	445,000
Credit sales	811,000

Debit Raw Materials Inventory $88,000; credit Accounts Payable $88,000.

Debit Raw Materials Inventory $88,000; credit Finished Goods Inventory $88,000.

Debit Cost of Goods Sold $88,000; credit Finished Goods Inventory $88,000.

Debit Work in Process Inventory $88,000; credit Raw Materials Inventory $88,000.

Debit Work in Process Inventory $88,000; credit Cost of Goods Sold $88,000.

4) Wilturner Company incurs $89,000 of labor related directly to the product in the Assembly Department, $38,000 of labor not directly related to the product but related to the Assembly Department as a whole, and $25,000 of labor for services that help production in both the Assembly and Finishing departments. The journal entries to record the labor would include:

Debit Work in Process Inventory $89,000; debit Factory Overhead $63,000.

Debit Work in Process Inventory $89,000; debit Wages Expense $63,000.

Debit Work in Process Inventory $127,000; debit Wages Expense $25,000.

Debit Work in Process Inventory $152,000.

Debit Work in Process Inventory $127,000; debit Factory Overhead $25,000.

5) A company's beginning Work in Process inventory consisted of 35,000 units that were 90% complete with respect to direct labor. A total of 105,000 were finished during the period and 40,000 remaining in Work in Process inventory were 50% complete with respect to direct labor at the end of the period. Using the weighted-average method, the equivalent units of production with regard to direct labor were:

125,000.

72,500.

98,000.

105,000.

156,500

6) A company estimates that overhead costs for the next year will be $8,460,000 for indirect labor and $162,500 for factory utilities. The company uses machine hours as its overhead allocation base. If 470,000 machine hours are planned for this next year, what is the company's plantwide overhead rate? (Round to two decimal places)

$0.05 per machine hour.

$18.35 per machine hour.

$18.00 per machine hour.

$0.35 per machine hour.

$2.89 per machine hour.

7) Peterson Company estimates that overhead costs for the next year will be $6,920,000 for indirect labor and $840,000 for factory utilities. The company uses machine hours as its overhead allocation base. If 80,000 machine hours are planned for this next year, what is the company's plantwide overhead rate?

$0.01156 per machine hour.

$97.00 per machine hour.

$86.19 per machine hour.

$10.5000 per machine hour.

$0.0952 per machine hour.

8)

Tarnish Industries produces miniature models of farm equipment. These collectibles are in great demand. It takes two operations, molding and finishing, to complete the miniatures. Next year's expected activities are shown in the following table:

	Molding	Finishing
Direct labor hours	91,000 DLH	176,500 DLH
Machine hours	114,000 MH	97,500 MH

Tarnish Industries uses departmental overhead rates and is planning on a $3.40 per direct labor hour overhead rate for the finishing department. Compute the estimated manufacturing overhead cost for the finishing department given the information shown in the table.

$26,765

$600,100

$661,200

$331,500

$719,100

9) Tarnish Industries uses departmental overhead rates and is planning on a $3.60 per machine hour overhead rate for the molding department. Compute the estimated manufacturing overhead cost for the molding department given the information shown in the table.

$409,400

$410,400

$351,000

$331,500

$963,000

10) Gladstone Co. has expected sales of $358,000 for the upcoming month and its monthly break even sales are $340,000. What is the margin of safety as a percent of sales, round your percentage answer to two decimal places?

5.29%.

105.3%.

194.97%.

5.03%.

94.97%.

11) The following information is available for a company's cost of sales over the last five months.

Month	Units sold	Cost of sales
January	380	30,200
February	780	$36,000
March	1,500	$48,000
April	2,300	$60,000

Using the high-low method, the estimated total fixed cost is:

$24,304.

$29,800.

$20,778.

$97,216.

$48,608.

12) Maroon Company's contribution margin ratio is 39%. Total fixed costs are $165,750. What is Maroons break-even point in sales dollars?

$165,750.

$230,393.

$64,643.

$194,607.

$425,000.

13) During its most recent fiscal year, Dover, Inc. had total sales of $3,300,000. Contribution margin amounted to $1,550,000 and pretax income was $475,000. What amount should have been reported as variable costs in the company's contribution margin income statement for the year in question?

$2,025,000.

$2,825,000.

$1,275,000.

$1,075,000.

$1,750,000.

14) Watson Company has monthly fixed costs of $88,000 and a 40% contribution margin ratio. If the company has set a target monthly income of $15,500, what dollar amount of sales must be made to produce the target income?

$258,750

$103,500

$220,000

$38,750

$181,250

15) During March, a firm expects to its total sales to be $170,000, its total variable costs to be $96,000, and its total fixed costs to be $26,000. The contribution margin for March is:

$74,000.

$96,000.

$122,000.

$48,000.

$26,000.

16) During its most recent fiscal year, Dover, Inc. had total sales of $3,080,000. Contribution margin amounted to $1,440,000 and pretax income was $310,000. What amount should have been reported as fixed costs in the company's contribution margin income statement for the year in question?

$1,750,000.

$2,770,000.

$1,330,000.

$1,130,000.

$1,640,000.

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