costing 402765 | Homework Solutions

1) Beginning WIP inventory is 900 units; completed and transferred out were 3,400 units; and Ending WIP inventory is 800 units. What is the number of units started? Show calculation. a. 3,300 b. 3400 c. 4200 d. 2600 2)Which of the following product is normally used to assign costs to goods that are mass produced? a. LIFO costing b. Fixed costing c. Job costing d. Process costing 3) Mark and Paul grows and sells sweet corn at its possible produce stand. The selling price per dozen is 3.75, variable costs are $1.25 per dozen, and total fixed costs are $750.00. What are breakeven sales in dollars? Show formula a. 300 b. 563 c. 375 d.1,125 4) Cartel Manufacturing produces frisbees using a three step process that includes molding, coloring and finishing. Requisition of materials to molding includes a a. credit to finished good inventory b. debit to manufacturing overhead c. credit to raw materials inventory d. debit to raw materials inventory 5) Henry Cartels produces ornate birdcages. The company’s average average cost per unit is $18.00 when it produces 2,200 birdcages. If $5,500 of the costs are fixed, and the plant manager uses the average cost per unit predict total costs, his forecast for 3,000 birdcages will be. Show calculation. a. $52,000 b. 39,600 c. 14,400 d. 54,000 6) Electric Jet Skis operates a jet ski rental business. Assume the jet skis rent for $55 per 6 hours. The variable costs are $33 per 6 hours rental, and its fixed costs are $80,000 each month. What is the contribution margin ratio?Show calculation a. 60% b. 22% c. 40% d. 250% 7) If the sales price per unit increases while the variable cost per unit and total fixed costs remains constant, which of the following statement is true? a. 1) Beginning WIP inventory is 900 units; completed and transferred out were 3,400 units; and Ending WIP inventory is 800 units. What is the number of units started? Show calculation. a. 3,300 b. 3400 c. 4200 d. 2600 2)Which of the following product is normally used to assign costs to goods that are mass produced? a. LIFO costing b. Fixed costing c. Job costing d. Process costing 3) Mark and Paul grows and sells sweet corn at its possible produce stand. The selling price per dozen is 3.75, variable costs are $1.25 per dozen, and total fixed costs are $750.00. What are breakeven sales in dollars? Show formula a. 300 b. 563 c. 375 d.1,125 4) Cartel Manufacturing produces frisbees using a three step process that includes molding, coloring and finishing. Requisition of materials to molding includes a a. credit to finished good inventory b. debit to manufacturing overhead c. credit to raw materials inventory d. debit to raw materials inventory 5) Henry Cartels produces ornate birdcages. The company’s average average cost per unit is $18.00 when it produces 2,200 birdcages. If $5,500 of the costs are fixed, and the plant manager uses the average cost per unit predict total costs, his forecast for 3,000 birdcages will be. Show calculation. a. $52,000 b. 39,600 c. 14,400 d. 54,000 6) Electric Jet Skis operates a jet ski rental business. Assume the jet skis rent for $55 per 6 hours. The variable costs are $33 per 6 hours rental, and its fixed costs are $80,000 each month. What is the contribution margin ratio? a. 60% b. 22% c. 40% d. 250% 7) If the sales price per unit increases while the variable cost per unit and total fixed costs remain constant, which of the following statement is true? a. The contribution margin increases and the break even point increases b. The contribution margin increases and the break even point decreases c. The contribution margin decreases and the break even point increases d. The contribution margin decreases and the break even point decreases 8) 79 Fitness Club provides monthly membership as well as personal training session. The personal trainers earn 50% of the revenue for all personal training session. The79 Fitness Club also sells nutrition products. Jeans general ledger accounts indicate the following for the year. The front desk staff wages expense remains the same throughout the year. Membership revenue = $140,000 Personal training revenue = $75,000 Product Sales = $65,000 Cost of product sold = $35,000 Front desk staff wages expense = $12,000 Personal trainer wages expense = 0 Space rental expense = $11,000 Straight line depreciation expense = $6,000 Rental insurance expense = $3,000 If a traditional income statement is prepared for the year, what is Gross Profit? Show calculation a. $280,000 b. $315,000 c. $207,5000 d. $245,000