How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask ConceptsCoach Your Own Question

ConceptsCoach
ConceptsCoach, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 437
Experience:  Chartered Accountant and MBA
39779793
Type Your Finance Question Here...
ConceptsCoach is online now
A new question is answered every 9 seconds

3. (TCO 1) A retailer purchased some trendy clothes that have

Resolved Question:

3. (TCO 1) A retailer purchased some trendy clothes that have gone out of style and must be marked down to 40% of the original selling price in order to be sold. Which of the following is a sunk cost in this situation? (Points: 4)
the current selling price
the original selling price
the original purchase price
the anticipated profit


4. (TCO 1) Shula’s 347 Grill has budgeted the following costs for a month in which 1,600 steak dinners will be produced and sold: materials, $4,080; hourly labor (variable), $5,200; rent (fixed), $1,700; depreciation, $800; and other fixed costs, $600. Each steak dinner sells for $14.00 each. What is the budgeted fixed cost per unit? (Points: 4)
$1.06
$1.44
$4.49
$1.94


5. (TCO 1) Which of the following costs is part of manufacturing overhead? (Points: 4)
indirect labor
direct labor
salaries for the accounting personnel
wages for the janitorial staff for the sales offices


6. (TCO 1) Which of the following is a period cost? (Points: 4)
rent on a factory building
depreciation on production equipment
raw materials cost
commissions paid on each unit sold


7. (TCO 1) Red Runner’s Work in Process Inventory account has a beginning balance of $50,000 and an ending balance of $40,000. Direct materials used are $70,000 and direct labor used totals $35,000. Cost of goods sold totals $135,000. Manufacturing overhead applied is $20,000. How much is cost of goods manufactured? (Points: 4)
$145,000
$115,000
$125,000
$135,000


8. (TCO 2) Lanking Company applies manufacturing overhead based on direct labor hours. Information concerning manufacturing overhead and labor for August follows:



Estimated


Actual

Overhead cost


$160,000


$161,000

Direct labor hours


8,000


8,200

Direct labor cost


$120,000


$115,800


How much is the predetermined overhead rate? (Points: 4)
$1.33
$20.00
$1.03
$19.63


9. (TCO 2) Citrus Company incurred manufacturing overhead costs of $300,000. Total overhead applied to jobs was $306,000. What was the amount of overapplied or underapplied overhead? (Points: 4)
$7,000 overapplied
$6,000 overapplied
$6,000 underapplied
$13,000 underapplied


10. (TCO 3) Companies in which of the following industries would not be likely to use process costing? (Points: 4)
cereals
paints
cosmetics
auto body shop


11. (TCO 3) The Blending Department began the period with 20,000 units. During the period the department received another 80,000 units from the prior department and at the end of the period 30,000 units remained, which were 40% complete. How much are equivalent units in The Blending Department’s work in process inventory at the end of the period? (Points: 4)
12,000
28,000
40,000
52,000


12. (TCO 3) During March, the varnishing department incurred costs of $90,250 for direct labor. The beginning inventory was 3,500 units and 10,000 units were transferred to the varnishing department from the sanding department during June. The direct labor cost in the beginning inventory was $27,270. The ending inventory consisted of 2,000 units, which were 25% complete with respect to direct labor. What is the cost per equivalent unit for direct labor? (Points: 4)
$8.71
$7.84
$11.19
$9.79


13. (TCO 4) Clearance Depot has total monthly costs of $8,000 when 2,500 units are produced and $12,400 when 5,000 units are produced. What is the estimated total monthly fixed cost? (Points: 4)
$4,400
$6,580
$3,600
$8,800
1. (TCO 4) The margin of safety is the difference between (Points: 4)
total revenue and total fixed costs.
expected level of sales and the break-even point.
budgeted fixed costs and actual fixed costs.
selling price and variable cost per unit.


2. (TCO 4) Werth Company produces tie racks. The estimated fixed costs for the year are $288,000, and the estimated variable costs per unit are $14. Werth expects to produce and sell 60,000 units at a price of $20 per unit. How much is the break-even point in units? (Points: 4)
48,000
72,000
3,600
8,471


3. (TCO 4) Randy Company produces a single product that is sold for $85 per unit. If variable costs per unit are $26 and fixed costs total $47,500, how many units must Randy sell in order to earn a profit of $100,000? (Points: 4)
1,735
618
890
2,500


4. (TCO 5) Which of the following is treated differently in full costing than in variable costing? (Points: 4)
Direct materials
Fixed manufacturing overhead
Direct labor
Variable manufacturing overhead


5. (TCO 5) Variable costing income is a function of: (Points: 4)
Units sold only.
Units produced only
Both units sold and units produced.
Neither units sold nor units. produced


6. (TCO 5) Peak Manufacturing produces snow blowers. The selling price per snow blower is $100. Costs involved in production are:

Direct Material per unit


$20

Direct Labor per unit


12

Variable manufacturing overhead per unit


10

Fixed manufacturing overhead per year


$148,500


In addition, the company has fixed selling and administrative costs of $150,000 per year. During the year, Peak produces 45,000 snow blowers and sells 30,000 snow blowers. How much is cost of goods sold using full costing? (Points: 4)
$1,359,000
$1,260,000
$2,038,500
$1,408,500




7. (TCO 6) Which of the following is not a reason that companies allocate costs? (Points: 4)
To calculate the full cost of products for financial reporting purposes
To discourage managers from using external suppliers
To reduce the frivolous use of company resources
To provide information needed by managers to make appropriate decisions


8. (TCO 6) Which of the following statements about cost pools is not
true? (Points: 4)
The costs in each of the cost pools should be homogeneous or similar.
Managers must make a cost-benefit decision when determining how many cost pools are appropriate.
Only four different kinds of costs may be included in a single cost pool.
More cost pools usually provide more accurate information, but are more expensive.


9. (TCO 6) AC Consulting Company has purchased a new $18,038 copier. This overhead cost will be shared by the purchasing, accounting, and information technology departments since those are the only departments which will be able to access the machine. The company has decided to allocate the cost based on the number of copies made by each department. Each department has estimated the number of copies which will be made over the life of the copier.

Department


Copies

Purchasing


250,000

Accounting


300,000

Information Tech


425,000



If cost allocations are computed to four significant digits and the purchasing department makes 58,000 copies this year, how much overhead will be allocated to purchasing? (Points: 4)
$4,185
$4,624
$77,750
$1,073


10. (TCO 7) A company is trying to decide whether to sell partially completed goods in their current state or incur additional costs to finish the goods and sell them as complete units. Which of the following is not relevant to the decision? (Points: 4)
The selling price of the completed units.
The costs incurred to process the units to this point.
The selling price of the partially completed units.
The costs that will be incurred to finish the units.


11. (TCO 7) BigByte Company has 12 obsolete computers that are carried in inventory at a cost of $13,200. If these computers are upgraded at a cost of $7,500, they could be sold for $15,300. Alternatively, the computers could be sold "as is" for $9,000. What is the net advantage or disadvantage of reworking the computers? (Points: 4)
$6,300 advantage
$1,200 disadvantage
$5,400 disadvantage
$3,000 advantage


12. (TCO 7) Olde Store has 12,000 cans of crab meat just a week past the expiration date. Each can cost $0.31. The cans could be sold as is for $0.20 each, or relabeled and sold as gourmet cat food. The cost of relabeling the cans would be $0.04 per can and the cans would then sell for $0.29 per can. What should be done with the cans and why? (Points: 4)
The cans should be thrown away since there will be a loss with the other alternatives.
The cans should be relabeled into cat food since the sales price increases $0.09 per can and the cost is only $0.04 per can.
The cans should be put on clearance since there is no reason to put more money into something that is already selling below cost.
It doesn’t matter what you do since all alternatives result in a loss.
Submitted: 4 years ago.
Category: Finance
Expert:  ConceptsCoach replied 4 years ago.

3. (TCO 1) A retailer purchased some trendy clothes that have gone out of style and must be marked down to 40% of the original selling price in order to be sold. Which of the following is a sunk cost in this situation? (Points: 4)

the original purchase price


4. (TCO 1) Shula's 347 Grill has budgeted the following costs for a month in which 1,600 steak dinners will be produced and sold: materials, $4,080; hourly labor (variable), $5,200; rent (fixed), $1,700; depreciation, $800; and other fixed costs, $600. Each steak dinner sells for $14.00 each. What is the budgeted fixed cost per unit? (Points: 4)

$1.94


5. (TCO 1) Which of the following costs is part of manufacturing overhead? (Points: 4)
indirect labor



6. (TCO 1) Which of the following is a period cost? (Points: 4)
rent on a factory building



7. (TCO 1) Red Runner's Work in Process Inventory account has a beginning balance of $50,000 and an ending balance of $40,000. Direct materials used are $70,000 and direct labor used totals $35,000. Cost of goods sold totals $135,000. Manufacturing overhead applied is $20,000. How much is cost of goods manufactured? (Points: 4)

$135,000


8. (TCO 2) Lanking Company applies manufacturing overhead based on direct labor hours. Information concerning manufacturing overhead and labor for August follows:

 

Estimated

Actual

Overhead cost

$160,000

$161,000

Direct labor hours

8,000

8,200

Direct labor cost

$120,000

$115,800



How much is the predetermined overhead rate? (Points: 4)

$20.00



9. (TCO 2) Citrus Company incurred manufacturing overhead costs of $300,000. Total overhead applied to jobs was $306,000. What was the amount of overapplied or underapplied overhead? (Points: 4)

$6,000 overapplied



10. (TCO 3) Companies in which of the following industries would not be likely to use process costing? (Points: 4)
cosmetics


11. (TCO 3) The Blending Department began the period with 20,000 units. During the period the department received another 80,000 units from the prior department and at the end of the period 30,000 units remained, which were 40% complete. How much are equivalent units in The Blending Department's work in process inventory at the end of the period? (Points: 4)
12,000


12. (TCO 3) During March, the varnishing department incurred costs of $90,250 for direct labor. The beginning inventory was 3,500 units and 10,000 units were transferred to the varnishing department from the sanding department during June. The direct labor cost in the beginning inventory was $27,270. The ending inventory consisted of 2,000 units, which were 25% complete with respect to direct labor. What is the cost per equivalent unit for direct labor? (Points: 4)

$9.79


13. (TCO 4) Clearance Depot has total monthly costs of $8,000 when 2,500 units are produced and $12,400 when 5,000 units are produced. What is the estimated total monthly fixed cost? (Points: 4)
$3,600

 


1. (TCO 4) The margin of safety is the difference between (Points: 4)

expected level of sales and the break-even point.



2. (TCO 4) Werth Company produces tie racks. The estimated fixed costs for the year are $288,000, and the estimated variable costs per unit are $14. Werth expects to produce and sell 60,000 units at a price of $20 per unit. How much is the break-even point in units? (Points: 4)
48,000



3. (TCO 4) Randy Company produces a single product that is sold for $85 per unit. If variable costs per unit are $26 and fixed costs total $47,500, how many units must Randy sell in order to earn a profit of $100,000? (Points: 4)
2,500


4. (TCO 5) Which of the following is treated differently in full costing than in variable costing? (Points: 4)

Fixed manufacturing overhead



5. (TCO 5) Variable costing income is a function of: (Points: 4)

Both units sold and units produced.



6. (TCO 5) Peak Manufacturing produces snow blowers. The selling price per snow blower is $100. Costs involved in production are:

Direct Material per unit

$20

Direct Labor per unit

12

Variable manufacturing overhead per unit

10

Fixed manufacturing overhead per year

$148,500



In addition, the company has fixed selling and administrative costs of $150,000 per year. During the year, Peak produces 45,000 snow blowers and sells 30,000 snow blowers. How much is cost of goods sold using full costing? (Points: 4)

$1,408,500




7. (TCO 6) Which of the following is not a reason that companies allocate costs? (Points: 4)

To discourage managers from using external suppliers



8. (TCO 6) Which of the following statements about cost pools is not
true? (Points: 4)

Only four different kinds of costs may be included in a single cost pool.


9. (TCO 6) AC Consulting Company has purchased a new $18,038 copier. This overhead cost will be shared by the purchasing, accounting, and information technology departments since those are the only departments which will be able to access the machine. The company has decided to allocate the cost based on the number of copies made by each department. Each department has estimated the number of copies which will be made over the life of the copier.

Department

Copies

Purchasing

250,000

Accounting

300,000

Information Tech

425,000




If cost allocations are computed to four significant digits and the purchasing department makes 58,000 copies this year, how much overhead will be allocated to purchasing? (Points: 4)

$1,073


10. (TCO 7) A company is trying to decide whether to sell partially completed goods in their current state or incur additional costs to finish the goods and sell them as complete units. Which of the following is not relevant to the decision? (Points: 4)

The costs incurred to process the units to this point.



11. (TCO 7) BigByte Company has 12 obsolete computers that are carried in inventory at a cost of $13,200. If these computers are upgraded at a cost of $7,500, they could be sold for $15,300. Alternatively, the computers could be sold "as is" for $9,000. What is the net advantage or disadvantage of reworking the computers? (Points: 4)

$1,200 disadvantage



12. (TCO 7) Olde Store has 12,000 cans of crab meat just a week past the expiration date. Each can cost $0.31. The cans could be sold as is for $0.20 each, or relabeled and sold as gourmet cat food. The cost of relabeling the cans would be $0.04 per can and the cans would then sell for $0.29 per can. What should be done with the cans and why? (Points: 4)
The cans should be relabeled into cat food since the sales price increases $0.09 per can and the cost is only $0.04 per can.

 

 

Hope this is well within your deadline of one hour:)

Feel free to clarify or click ACCEPT so that I get paid

 

ConceptsCoach, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 437
Experience: Chartered Accountant and MBA
ConceptsCoach and 3 other Finance Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Rakhi Vasavada

    Financial and Legal Consultant

    Satisfied Customers:

    2073
    Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
< Last | Next >
  • http://ww2.justanswer.com/uploads/RA/rakhi.v/2012-7-3_14374_RakhiVasavadaL.64x64.jpeg Rakhi Vasavada's Avatar

    Rakhi Vasavada

    Financial and Legal Consultant

    Satisfied Customers:

    2073
    Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
  • http://ww2.justanswer.com/uploads/BU/BusinessTutor/2012-2-2_115741_Kouki2.64x64.jpg Manal Elkhoshkhany's Avatar

    Manal Elkhoshkhany

    Tutor

    Satisfied Customers:

    1890
    More than 5000 online tutoring sessions.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    1755
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JK/jkcpa/2011-1-16_182614_jkcpa.64x64.jpg JKCPA's Avatar

    JKCPA

    CPA

    Satisfied Customers:

    838
    Bachelors degree and CPA with Accounting experience.
  • http://ww2.justanswer.com/uploads/starside8/2010-2-16_55433_DSCN1175.JPG Eric's Avatar

    Eric

    Financial Manager

    Satisfied Customers:

    558
    Loan servicing, counseling and real estate expert. Foreclosure Expert and Financial Planner.
  • http://ww2.justanswer.com/uploads/FA/fastfile/2011-12-15_23139_Klein2011small.64x64.jpg R. Klein, EA's Avatar

    R. Klein, EA

    Accountant

    Satisfied Customers:

    397
    Intuit Ask a Tax Expert. QuickBooks Certified Pro Advisor (all editions)
  • http://ww2.justanswer.com/uploads/dkaplun/2009-05-17_173121_headshot_1_2.jpg Dimitry K., Esq.'s Avatar

    Dimitry K., Esq.

    Attorney

    Satisfied Customers:

    324
    NASD Licensed Rep, 1997-2001, Business Attorney