1) Max Company uses a job order cost accounting system. In the last month, the system accumulated labor time tickets totaling $31,000 for direct labor and $6,200 for indirect labor. These costs were accumulated in Factory Payroll as they were paid. Which entry should Max make to assign the Factory Payroll?

	General Journal	Debit	Credit
(A)	Payroll Expense	37,200
	Cash		37,200
(B)	Payroll Expense	31,000
	Factory Overhead	6,200
	Factory Payroll		37,200
(C)	Goods in Process Inventory	31,000
	Factory Overhead	6,200
	Factory Payroll		37,200
(D)	Goods in Process Inventory	31,000
	Factory Overhead	6,200
	Accrued Wages Payable		37,200
(E)	Goods in Process Inventory	37,200
	Factory Payroll		37,200

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2) Which of the following journal entries correctly records the current month's activity where $68,000 of direct material and $23,000 of indirect materials were used in the production process?

(A)	Goods in process 91,000 Raw materials inventory 91,000
(B)	Raw materials inventory 91,000 Cash 91,000
(C)	Raw materials inventory 91,000 Goods in process inventory 68,000 Factory overhead 23,000
(D)	Goods in process 23,000 Factory overhead 68,000 Cash 91,000
(E)	Goods in process 68,000 Factory overhead 23,000 Raw materials inventory 91,000 ------------ 3) A company uses activity-based costing to determine the costs of its three products: A, B and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table: Budgeted Activity Activity Cost Pool Budgeted Cost Product A Product B Product C Activity 1 $320,250 12,500 15,500 33,000 Activity 2 $266,000 13,500 28,000 14,500 Activity 3 $173,250 3,800 2,300 2,900 How much overhead will be assigned to Product B using activity-based costing? $258,650 $297,950 $202,900 $759,500 $320,250 ------------ 4) A company's product sells at $50 per unit and has a $23 per unit variable cost. The company's total fixed costs are $324,000. The break-even point in units is: 4,208 6,480 12,000 14,087 6,000 ---------- 5) Under absorption costing, which of the following statements is not true? (a) Over production and inventory buildup can occur because of how managers are evaluated and rewarded. (b) The fixed costs per unit decline as more units are produced. (c) Variable inventory costs are treated in the same manner as they are under variable costing. (d) Fixed inventory costs are treated in the same manner as they are under variable costing. (e) All manufacturing costs are assigned to products.