Problems Section –

Problem

            1.   The forthcoming is a list of multitudinous absorbs of conceding sweatshirts. Classify each absorb as either a mutable, unwandering, or adulterated absorb for individuals done and sold.

            2.   On October 31, the end of the earliest month of operations, Morristown & Co. expeditions the forthcoming proceeds proposition installed on parching absorbing:

If the unwandering manufacturing absorbs were $42,900 and the mutable dispose-ofing and professional outlays were $14,600, fit an proceeds proposition in correspondence delay the mutable absorbing concept.

            3.   Installed on the forthcoming evolution and sales basis of Shingle Co. for March of the curfissure year, fit (a) a sales budget and (b) a evolution budget.

            4.   Door & Window Co. was unconfused on August 1 of the curfissure year. Incomplete sales for the contiguous three months are as follows:

The union expects to dispose-of 40% of its wares for specie. Of the sales on wholeity, 25% are expected to be attentive in the month of the sale and the remnant in the forthcoming month.

Prepare a catalogue indicating whole specie collections for August, September, and October.

            5.   For the curfissure year finality April 30, Hal Union expects unwandering absorbs of $60,000, a individual mutable absorb of $70, and a individual dispose-ofing value of $105.

            6.   The Filling Department of Rose Petal Lotion Union had 2,300 ounces in rise composition in arrangement list (70% accomplished). During the duration 46,500 ounces were accomplishedd. The finality composition in arrangement list was 1,800 ounces (25% accomplished). What are the equipollent individuals for twain plain embodieds and intercharge absorbs (if embodieds are adventitious at the rise of the arrangement)?

            7.   Give me issues of the forthcoming absorbs for an automobile creator (grow in the misapply blanks).

Direct Materials

1.______________________________________________________________

2.______________________________________________________________

Direct Labor

1. _____________________________________________________________

Factory Overhead

1. Inplain Materials ________________________________________________

2. Inplain Drudge __________________________________________________

3. Other _________________________________________________________

Period Costs

1. ______________________________________________________________

2. ______________________________________________________________

Question 1

For which of the forthcoming matteres would a arrangement absorb scheme be misapply?

            An oil refinery

            Custom electronics creator

            Yacht builder

            Specialty movables union

Question 2

Department A had 4,000 individuals in composition in arrangement that were 60% accomplishedd as to drudge and over at the rise of the duration, 29,000 individuals of plain embodieds were adventitious during the duration, 31,000 individuals were accomplishedd during the duration, and 2,000 individuals were 80% accomplishedd as to drudge and over at the end of the duration. All embodieds are adventitious at the rise of the arrangement. The earliest-in, earliest-out order is used to absorb inventories.

The reckon of equipollent individuals of evolution for intercharge absorbs for the duration was:

            33,000

            33,800

            29,800

            30,200

Question 3

Department A had 4,000 individuals in composition in arrangement that were 60% accomplishedd as to drudge and over at the rise of the duration, 29,000 individuals of plain embodieds were adventitious during the duration, 31,000 individuals were accomplishedd during the duration, and 2,000 individuals were 80% accomplishedd as to drudge and over at the end of the duration. All embodieds are adventitious at the rise of the arrangement. The earliest-in, earliest-out order is used to absorb inventories.

The reckon of equipollent individuals of evolution for embodied absorbs for the duration was:

            32,000

            33,000

            29,800

            29,000

Question 4

Which of the forthcoming absorbs is an issue of a absorb that debris the similar in whole as the reckon of individuals done changes?

            Allowance of a factory superintendent

            Plain embodieds

            Units of evolution backbiting on factory equipment

            Plain drudge

Question 5

Which of the forthcoming describes the comportment of the unwandering absorb per individual?

            Decreases delay decreasing evolution

            Debris uniform delay changes in evolution

            Increases delay increasing evolution

            Decreases delay increasing evolution

Question 6

If sales are $820,000, mutable absorbs are 58% of sales, and untrammelled proceeds is $260,000, what is the assistance edge affinity?

            62%

            42%

            53.1%

            32%

Question 7

If unwandering absorbs are $250,000, the individual dispose-ofing value is $125, and the individual mutable absorbs are $73, what is the break-even sales (units)?

            4,808 individuals

            3,425 individuals

            2,000 individuals

            2,381 individuals

Question 8

If unwandering absorbs are $1,400,000, the individual dispose-ofing value is $240, and the individual mutable absorbs are $110, what is the aggregate of sales required to conceive an untrammelled proceeds of $200,000?

            12,308 individuals

            10,769 individuals

            12,000 individuals

            1,538 individuals

Question 9

If unwandering absorbs are $500,000, the individual dispose-ofing value is $55, and the individual mutable absorbs are $30, what is the break-even sales (units) if unwandering absorbs are acceptiond by $80,000?

            25,000 individuals

            23,200 individuals

            10,545 individuals

            19,333 individuals

Question 10

Which of the forthcoming stipulations would object the break-even purpose to subside?

            Whole unwandering absorbs acception

            Individual dispose-ofing value subsides

            Individual mutable absorb subsides

            Individual mutable absorb acceptions

Question 11

Which of the forthcoming stipulations would object the break-even purpose to acception?

            Whole unwandering absorbs subside

            Individual dispose-ofing value acceptions

            Whole unwandering absorbs acception

            Individual mutable absorb subsides

Question 12

The aggregate of proceeds below parching absorbing achieve be further than the aggregate of proceeds below mutable absorbing when individuals manufactured:

            are similar to or superior than individuals sold

            are near than individuals sold

            exceed individuals sold

            similar individuals sold

Question 13

A matter operated at 100% of accommodation during its earliest month and incurred the forthcoming absorbs:

Production absorbs (10,000 individuals):                       

Direct embodieds                        $140,000

Direct drudge                              $40,000

Variable factory over       $20,000

Fixed factory over                         $4,000

                                                                        $204,000

Operating outlays:                  

Variable untrammelled outlays    $ 34,000

Fixed untrammelled outlays            2,000

                                                                          $36,000

If 2,000 individuals survive unsold at the end of the month and sales whole $300,000 for the month, what would be the aggregate of proceeds from operations reputed on the mutable absorbing proceeds proposition?

            $114,800

            $100,800

            $100,000 -??????

            $140,000

Question 14

A matter operated at 100% of accommodation during its earliest month and incurred the forthcoming absorbs:

Production absorbs (10,000 individuals):                       

Direct embodieds                        $140,000

Direct drudge                              $40,000

Variable factory over       $20,000

Fixed factory over                         $4,000

                                                                        $204,000

Operating outlays:                  

Variable untrammelled outlays    $ 34,000

Fixed untrammelled outlays            2,000

                                                                          $36,000

If 2,000 individuals survive unsold at the end of the month and sales whole $300,000 for the month, what is the aggregate of the manufacturing edge that would be reputed on the mutable absorbing proceeds proposition?

            $140,000

            $106,000

            $104,000

            $114,800

Question 15.

A matter operated at 100% of accommodation during its earliest month and incurred the forthcoming absorbs:

Production absorbs (5,000 individuals):                         

Direct embodieds                                    $70,000

Direct drudge                                          $20,000

Variable factory over                   $10,000

Fixed factory over                                    $ 2,000

                                                                                    $102,000

Operating outlays:                  

Variable untrammelled outlays                $17,000

Fixed untrammelled outlays                  $1,000

                                                                                      $18,000                      

If 1,000 individuals survive unsold at the end of the month and sales whole $150,000 for the month, what is the aggregate of the assistance edge that would be reputed on the mutable absorbing proceeds proposition?

            $53,000

            $51,400

            $54,000

            $52,000

Question 16

For March, sales enrichment is $1,000,000; sales commissions are 4% of sales; the sales manager's allowance is $80,000; advertising outlays are $75,000; shipping outlays whole 1% of sales; and miscellaneous dispose-ofing outlays are $2,100 plus 1% of sales. Whole dispose-ofing outlays for the month of March are:

            $187,550

            $217,100

            $194,100

            $192,100

Question 17

Nuthatch Corporation began its operations on September 1 of the curfissure year. Budgeted sales for the earliest three months of matter are $260,000, $350,000, and $400,000, respectively, for September, October, and November. The union expects to dispose-of 30% of its wares for specie. Of sales on wholeity, 80% are expected to be attentive in the month of the sale and 20% in the month forthcoming the sale.

The specie collections in October from wholeitys receivable are:

            $337,400

            $210,000

            $232,400

            $240,000

Question 18

Finch Union began its operations on March 31 of the curfissure year.  Finch Co. has the forthcoming incomplete absorbs:

April                                        May                             June

Manufacturing absorbs (1)           $156,800                                 $195,200                     $217,600

Insurance outlay (2)                 1,000                                       1,000                           1,000

Depreciation outlay                 2,000                                       2,000                           2,000

Property tax outlay (3)                500                                          500                              500

(1)      3/4 of the manufacturing absorbs are hired for in the month they are incurred.  1/4 is hired in the forthcoming month.

(2)      Protection outlay is $1,000 a month, however, the protection is hired filthy times annually in the earliest month of the locality, i.e. January, April, July, and October.

(3)      Ownership tax is hired unintermittently a year in November.

The specie payments for Finch Union in the month of April are:

            $123,100

            $120,600

            $121,100

            $122,600

Question 19

Which of the forthcoming is falsity in compliments to plain embodieds for an auto creator?

            Oil to levigate factory channels would not be a plain embodied.

            Upholstery edifice would probably be a plain embodied

            Steel would probably be a plain embodied.

            Small tractile clips to halt on door panels, that beseem disunite of the auto, must be wholeityed for as     plain embodieds.

Question 20

Which of the forthcoming is an issue of plain drudge absorb for an airplane creator?

            Absorb of jet engines

            Absorb of allowance of constellation compositioner

            Absorb of oil lubricants for factory channelry

            Allowance of introduce superintendent

Question 21

Prime absorbs are

            duration absorbs and factory over

            plain drudge and factory over

            plain embodieds and factory over

            plain embodieds and plain drudge

Question 22

Product absorbs

            are outlayd as absorbs are incurred for plain drudge, plain embodied and factory over

            answer on twain the proceeds proposition and pit sheet

            answer solely on the pit sheet

            answer solely on the proceeds proposition

Question 23

A introduce manager’s allowance may be referred to as:

            an inplain absorb

            a plain absorb

            either a plain absorb or an inplain absorb gone managerial wholeitying is not detested by GAAP

            a duration absorb

Question 24

An issue of a duration absorb is:

            advertising outlay

            backbiting on factory equipment

            inplain embodieds

            ownership taxes on introduce facilities