On Tap Ke Toan Quan Tri 1 Quiz Ke Toan Quan Tri

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Ôn tập kế toán quản trị 1 - Quiz kế toán quản trị
Kế toán quản trị 1 (Trường Đại học Kinh tế Thành phố Hồ Chí Minh)
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WEEK 3: CHAPTER 5: Absorption Costing and

Variable Costing
Question: A company has a budget to produce 5,000 units of Product B in December. The budget for
December shows that, for Product B, the opening inventory will be 400 units and the
closing inventory will be 900 units. The monthly budgeted production cost data for Product
B for December is as follows:
Variable direct costs per unit $6.00
Variable production overhead costs per unit $3.50
Total fixed production overhead costs $29,500
The company absorbs overheads on the basis of the budgeted number of units produced.
The budgeted profit for Product B for December, using ABSORPTION COSTING, is:
A $2,950 lower than it would be using marginal costing
B $2,950 greater than it would be using marginal costing
C $4,700 lower than it would be using marginal costing
D $4,700 greater than it would be using marginal costing
Answer:The opening inventory was 400 units and the closing inventory was 900 units, therefore
inventory has increased.
If production is greater than sales then absorption costing will show the higher profit.
Difference in profit: = Change in inventory × Fixed production cost per unit
= (900 – 400) × $29,500/5,000 units = $2,950
Or
Absorption costing overhead rate= 29,500/500= 5.9 per unit
Absorption costing profit greater by 5.9*500=2950$
Question: K Plc had a marginal costing profit of $10,400 in the last period. Its inventories for the period were valued in
the following way:
- Opening inventory: $3,600
- Closing inventory: $4,900
If the business had uses absorption costing, the inventory values would have been as follow:
- Opening inventory: $5,800
- Closing inventory: $7,840
What would have been the reported profit using absorption costing? => 9660
Our inventory has increased:
Absorption Costing: Inventory increased by 2040
Marginal Costing: Inventory increased by $1300
Difference : 2040-1300=740
Absorption costing profit= 10400-740=9660
Question: HMF Co produce a single product. The budgeted fixed production overheads for the period are $500,000. The
budgeted output for the period is 2,500 units. Opening inventory at the start of the period consisted of 900 units and
closing inventory at the end of period consisted of 300 units. If absorption costing principle were applied, the profit for
the period compared to the marginal costing would be which of the following?
Price of each unit = $500,000/2,500= 200$

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difference between absorption costing and marginal costing = $200*300- $200*900= -120,000$
=> Answer: $120,000 lower
The correct answer is: $120,000 lower

Units
Opening inv 900
Closing inv 300
Decrease 600 ´ = 120,000 lower
Question: S Plc sells plastic furniture.Its popular product is kids chair. These are small chairs for children which has high
demand among playshools and day care centres. S Plc has budgeted to produce 7,500 kids chairs in November. The
budget for November shows that for the kids chairs, the opening inventory will be 600 units and the closing inventory
will be 1,100 units. The monthly budgeted production cost data for the chair for November is as follows:
Variable indirect costs per unit: $6.00
Variable production overhead cost per unit: $3.50
Total fixed production overhead cost: $ 44,250.
The company absorbs overheads on the basis of the budgeted number of units produced. From the options below, choose
the amount by which the budgeted profit for the kids chairs using absorption costing will vary as compared to the profit
computed using variable costing:
Price of each unit = 44,250/7500=5,9$
Difference between using absorption costing and compared to the using variable costing : 5,9* 1,110-5,9*600= $2,950
Question:Budgeted production is 24,000 units

- Fixed production overhead costs are $240,000
- Forecast sales are 22,000 units
- Under absorption costing the profit for the period is expected to be: $32,000
What would be the reported marginal costing profit for the period?
=>Marginal Profit = Marginal Revenue - Marginal Cost
Marginal cost is not influenced by fixed costs.
=> Cost of per unit = 240,000$/24,000= 10$
=> = 22,000*10=220,000
=> Marginal Cost= 240,000-220,000=20,000
=> Marginal Profit = $32,000-20,000=12,000
Question:A single-product company prepares income statements using both absorption and variable costing.
Manufacturing overhead cost applied per unit produced in Year 2 was the same as in Year 1. The Year 2 variable-costing
statement reported a profit, whereas the Year 2 absorption-costing statement reported a loss.A possible explanation for the
difference in reported income is that the units produced in Year 2 were:
a. Fewer than units sold in Year 2.

b. Fewer than the activity level used for allocating overhead to the product.
c. Greater than the activity level used for allocating overhead to the product.
d. Greater than units sold in Year 2.
=>The value of the inventory asset will always be higher under absorption costing than under variable costing because,
under absorption costing, the unit product cost includes the fixed manufacturing overhead per unit produced for the
period.

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The beginning inventory cost is an expense and the ending inventory is a contra-expense because it reduces the Cost of
Goods Sold.
This implies that when the inventory level decreases (because the unit produced were fewer than the units sold), the Cost
of Goods Sold expense would be greater under absorption costing than under variable costing because the beginning
inventory amount is higher.
This will cause the profit under absorption costing to be lower than the profit under variable costing.
Options b and c are wrong because the activity level used to allocate overhead is the same for absorption and variable
costing, so it would not make a difference.
Question: T Ltd uses a standard labour hour rate to charge its overheads to its clients' work. During the last annual
reporting period production overheads were under- absorbed by £19,250. The anticipated standard labour hours for the
period were 20,000 hours while the standard
hours actually charged to clients were 23,100 . The actual production overheads incurred in the period were £481,250.
The budgeted production overhead for the period were:
Actual overhead incurred: 481,250

Less under‐absorbed overhead: 19,250
Overhead absorbed
–––––––
462,000
–––––––
Overhead absorbed = Actual standard hours charged × OAR
So OAR = overhead absorbed/actual standard hours charged = $462,000/23,100 = $20
OAR = Budgeted overheads/budgeted labour hours
So budgeted overheads = OAR × budgeted labour hours = $20 × 20,000 = $400,000
Question: From the options below, select the effect of a decrease in the level of stock during a period on absorption
costing profit and closing stock valuation assuming the overhead absorption rate remains unchanged
Answer:Absorption costing profits will be lower and closing stock valuation higher than undervariable costing.
Question: From the option below, select the one scenario in which the overheads will always be over-absorbed
A actual output is higher than budgeted output
B actual overheads incurred are higher than the amount absorbed
C actual overheads incurred are lower than the amount absorbed
D budgeted overheads are lower than the overheads absorbed
Explanation: Option A may lead to over‐absorption but this will depend on the extent to which actual
overhead costs differ from budget. Option B describes under ‐absorption. Option D refers to
budgeted overheads, which are used to calculate the OAR but otherwise not used in the
calculation of under‐/over‐absorption.
Question: Bass Ltd., which has only one product, has provided the following data concerning its most recent month of
operations:
Selling price $ 115
Units in beginning inventory 0
Units produced 6,600
Units sold 6,400
Units in ending inventory 200
Variable costs per unit:
Direct materials $ 26

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Direct labor $ 46
Variable manufacturing overhead $ 7
Variable selling and administrative expense $ 9
Fixed costs:
Fixed manufacturing overhead $ 105,600

Fixed selling and administrative expense $ 51,200
What is the unit product cost for the month under absorption costing?
a. $79 per unit b. $95 per unit c. $104 per unit d. $88 per unit
Using absorption costing method.)

Particulars Amount
Direct materials $26
Direct labor $46
Variable manufacturing overhead $7
Fixed Manufacturing cost
($105,600 / 6,600) $16

Total Product Cost per unit $95
Question:Stead Company produces a single product. Last year, the company's net operating income computed by the
absorption costing method was $6,400, and its net operating income computed by the variable costing method was
$9,100. The company's unit product cost was $17 under variable costing and $20 under absorption costing. If the ending
inventory consisted of 2,100 units, the beginning inventory in units must have been
A) 1,200 B) 2,100 C) 3,000 D) 4,800
Answer is option "d" 4800 units
Difference in net income = $14500-$6400 =$8100.
Difference in unit cost is $20-$17= $3 per unit i.e. difference in opening and closing units =$8100/$3 = 2700 units
If closing unit is 2100 units then opening units is 2700+2100 units = 4800 units because net operating income under
absorption costing is less then so opening units is more then closing so 4800 units was opening unit
Question: From the options below, select the advantages of marginal costing
a. Marginal costing is useful for internal decision making.
b. Marginal costing ensures that overheads are shared across production
c. Marginal costing is suitable for statutory accounting purposes
d. Marginal costing is not distorted by arbitrary allocation of overheads
Question: The absorption costing profit is $82,750. Opening inventory is 4,500 units and closing inventory is 3,700 units.
Fixed overheads are absorbed at $4 per unit. What would be the reported profit using marginal costing
Difference in profit = change in inventory levels= 4500-3700=800
Marginal costing profit = 82,750 - 800*4= 79,550$

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Question: A company has established a marginal costing profit of $72,300. Opening inventory was 300 units and closing
inventory is 750 units. The fixed production overhead absorption rate has been calculated as $5/unit. What was the profit
under absorption costing?
A.$67,050 B.$70,050 C.$74,550 D.$77,550

There was an increase in inventory in the period therefore the absorption costing profit is higher than the marginal costing
profit (because a larger amount of fixed overhead is carried forward in the closing inventory value).
$
Marginal costing profit 72,300
Less: fixed costs in opening inventory (300 units x $5) (1,500)
Add: fixed costs in closing inventory (750 units x $5) 3,750
Absorption costing profit 74,550
Question: A company uses standard absorption costing to value inventory. Its fixed OAR is $12 per labour hr & each unit
of production should take 4 hrs. In a recent period where there was no opening inventory of finished goods, 20,000 units
were produced using 100,000 labour hrs, 18,000 units were sold. The actual profit was $ 464,000.
What profit would have been earned under a standard marginal costing system?
A. $368,000 B. $440,000 C. $344, 000 D. $560,000
The only difference between the absorption and marginal profits is the change in the inventory multiplied by the fixed
overheads per unit.
In this question, the produced 20,000 units and sold 18,000 units. So the inventory increased by 2,000 units.
The fixed overheads per unit at 4 x $12 = $48.
So the profit will be different by 2,000 x $48 = $96,000.
If inventories increase then absorption gives the higher profit (and so marginal gives a lower profit – 96,000 lower)
=$ 464,000 -96,000= $368,000
Question:Determine the statements below whether are TRUE OR FALSE

1.Under variable costing, it is possible to defer a portion of the fixed manufacturing overhead costs of a the current period
to future period through the inventory account. => FALSE
2.The inventory value shown on the balance sheet is generally higher under absorption costing than under variable
costing. => Answer: True
3.Under variable costing, an increase in the fixed factory overhead will have no effect on the unit product cost. =>
Answer: True
4.Under variable costing, inventoriable product costs consist of direct materials, direct labor, variable manufacturing
overhead and variable selling and administration expenses.=> Answer: False
5. Under the absorption costing method, a portion of fixed manufacturing overhead cost is allocated to each unit of
product. Answer: True
6.Under absorption costing, a portion of fixed manufacturing overhead cost is released from inventory when sales volume
exceeds production volume. Answer: True
7.Contribution margin and gross margin mean the same thing. Answer: False
8. When reconciling variable costing and absorption costing net operating income, fixed manufacturing overhead costs
deferred in inventory under absorption costing should be deducted from variable costing net operating income to arrive at
the absorption costing net operating income. Answer: False
9.When viewed over the long term, accumulated net operating income will be the same for variable and absorption
costing if there are no ending inventories at the end of the term. Answer: True
11. Under absorption costing, the profit for a period is not affected by changes in inventory. Answer: False
12. When using absorption costing, a company may be able to show a profit even if it is operating below the breakeven
point. Answer: True

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13. Variable costing is more compatible with cost-volume-profit analysis than is absorption costing. Answer: True
Question: Light It Up manufactures lights and based on the advice of the management accountant had changed from
absorption costing to variable costing for internal reporting purposes.Manufacturing levels and sales have been very
consistent over recent periods, however, the production manager has noticed a change in profits in the internal reports.
Here is some data for this period for Light It Up.
- Opening inventory: 600
- Unit produced: 5,000
- Unit sold: 5,500
Light It Up had previously used an predetermined rate of $7 to assign overheads.
The profit reported in this period’s internal reports was $10,000. What would the profits have been if Light It Up had not
switched to variable costing?
=> 17,700
Question: The following are the cost details for a toy soldier made by Play Today
Direct Material ( Per unit): $3
Direct labour (Per unit): $1
Direct expenses ( Per unit): $2
Variable production overheads ( Per unit): $1
Variable selling & administration costs ( Per unit): $1
Fixed overhead absorption rate: $2
The closing inventory is 100 units. What is the value of closing inventory under variable costing?
Answer: The cost of the ending inventory shall be the ending inventory in units multiplied by the unit cost
Unit cost under variable costing = DM+DL+DE+ VPO+VSA= 3+1+2+1+1= 8$
Cost of the ending inventory = 8 *100 =800$
Question:A business manufactures a single product which sells for $80 per unit. The budgeted data
for the latest period are as follows:
Production and sales volume 2,000 units
Material cost: $25,000
Direct labour cost: $12,000
Production overhead: $69,800
Non‐production overhead: $71,4200
Actual production volume and costs were as budgeted for the period but the actual sales
volume achieved was 4,700 units. There was no inventory at the beginning of the period.
The profit for the period using marginal costing is $_____
The profit for the period using marginal costing is $3,930.
Value of closing inventory = $(13,500 + 11,800) × 200/2,000 $2,530
$$
Sales 81,000
Variable cost of production 25,300
Less closing inventory 2,530
––––––
Cost of sales 22,770
––––––
Contribution 58,230
Fixed overhead 54,300
––––––
Profit 3,930

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Question: A business manufactures a single product which sells for $45 per unit. The budgeted data
for the latest period are as follows:
Production and sales volume 2,000 units
Material cost 13,500

Direct labour cost 11,800
Production overhead 32,400
Non‐production overhead 21,900
Actual production volume and costs were as budgeted for the period but the actual sales
volume achieved was 1,800 units. There was no inventory at the beginning of the period.
The profit for the period using absorption costing is $_____
Value of closing inventory $(13,500 + 11,800 + 32,400) × 200/2,000 = $5,770
$ $
Sales (1,800 × $45) 81,000
Cost of production 57,700
Less closing inventory 5,770
––––––
Cost of sales 51,930
––––––
Gross profit 29,070
Non‐production overhead 21,900
––––––
Profit 7,170
––––––
Question: Super Fast manufactures toy sport cars. Sales this year have been significantly below target due to a new
competitor in the market. The management team receives a bonus if target profit are achieved. Super Fast uses absorption
costing and a significant proportion of cost are fixed overhead. Deposit poor revenue, the profit targets for the year were
achieved and management received their bonus. Which of the following is a possible explanation?
a. Production levels were increased, resulting in a build up of inventory
b. Management reduced production levels to match demand, resulting in a reduction in total variable production
costs
c. Production levels were reduced, resulting in a fall in inventory
d. Management reduced their selling price for the second half of the year, resulting in improved sales for the
second half of the year
WEEK 4: CHAPTER 8: Job order costing

Question: Fisher Corporation uses a predetermined overhead rate based on direct labor cost to apply manufacturing
overhead to jobs. The following information about Fisher Corporation's Work in Process inventory account has been
provided for the month of May:
May 1 balance $26,000
Debits During May:
Direct Materials $40,000
Direct Labor $50,000
Manufacturing Overhead $37,500

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During the month, Fisher Corporation's Work in Process inventory account was credited for $120,500, which represented
the Cost of Goods Manufactured for the month. Only one job remained in process on May 31; this job had been charged
with $9,600 of applied overhead cost. The amount of direct materials cost in the unfinished job would be:
MOH applied based on DL cost.
Applied = rate x DL.
=>Rate = Applied/DL = 37.500/50,000= 75%
Applied overhead was 9,600 = 75% x DL in job.
=>DL in job = 9600/.75 = 12,800
Beg wip 26,000 + DM 40,000 + DL 50,000 + MOH 37,500 – COGM 120,500 = End WIP
=>End WIP = 33,000= end DM + end DL 12,800 + end MOH 9,600
End DM = 33,000 – 12,800 – 9,600 = 10,600
Question:Braaten Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year,
the estimated direct labor-hours were 14,100 hours. At the end of the year, actual direct labor-hours for the year were
13,500 hours, the actual manufacturing overhead for the year was $291,100, and manufacturing overhead for the year was
underapplied by $7,600. The estimated manufacturing overhead at the beginning of the year used in the predetermined
overhead rate must have been:
A) $286,100 B) $296,100 C) $298,816 D) $283,500
actual overhead - applied overhead = under if >0 or over if <0

291,100 - applied overhead = 7,600
233,000 - 15,400 = 283,500 applpied overhead
actual hours x rate = applied overhead
13,500 x rate = 283,500
rate = 21
expected overhead/cost driver = rate
expected overhead/ 14,100 = 21
21 x 14,100 = expected overhead
296,100 expected overhead
Question:In the Vasquez Corporation, any overapplied or underapplied manufacturing overhead is closed out to Cost of
Goods Sold. Last year, the Corporation incurred $27,000 in actual manufacturing overhead cost, and applied $29,000 of
manufacturing overhead cost to jobs. The beginning and ending balances of Finished Goods were equal, and the
Corporation's Cost of Goods Manufactured for the year totaled $71,000. Given this information, Cost of Goods Sold, after
adjustment for any overapplied or underapplied manufacturing overhead, for the year must have been:
a. 98,000 b. 73,000 c. 71,000 d. 69,000
=> 2000 overapplied. 71,000-2000= 69000
Question:4Es Corporation uses a job-order costing system and applies overhead to jobs using a predetermined overhead
rate. During the year the company's Finished Goods inventory account was debited for $384,000 and credited for
$325,900. The ending balance in the Finished Goods inventory account was $72,100. At the end of the year,
manufacturing overhead was underapplied by $5,400.
The balance in the Finished Goods inventory account at the beginning of the year was: $ 14000
Beginning finished goods inventory balance = $ 72,100 + $ 325,900 - $ 384,000 = $ 14,000
If the applied manufacturing overhead was $174,000, the actual manufacturing overhead cost for the year was:$ 179,400 (
174,000+ 5,400= 179,400)

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Question: On April 9 of the current year, Job XX4 was completed. The job cost sheet showed a total of $4,000 in direct
materials and $6,000 in direct labor at a rate of $20 per direct labor hour. Plantwide overhead is applied at $30 per direct
labor hour. The debit to Finished Goods Inventory to record the completion of Job XX4 is
A) $19,000. B) $9,000. C) $4,000. D) $13,000
direct materials = $4,000
direct labor = $6,000
direct labor hour = $20
over head applied = $30 per direct labor hour
to find out debit to Finished Goods Inventory
first we get here overhead that is

overhead = × overhead
overhead = 6000/20 × 30= 300*30
overhead = $9000
amount to be debited to finish good inventory = direct materials + direct labor + over head
amount to be debited to finish good inventory = $4,000 + $6,000 +$9,000=$19000
correct option is A) $19,000
Question: In order to meet the general production requirements in a factory, direct workers may work overtime which is
paid at a premium over the normal hourly rate
Which account(s) would be debited to transfer the overtime wages of direct workers form the wages control account?
=>Work in Process Inventory & Factory Overhead accounts
Question:Arnold Company is a manufacturing firm that uses job-order costing. The company's inventory balances were
as follows at the beginning and end of the year:
Beginning Balance Ending Balance
Raw materials $21,000 $24,000
Work-in-process $40,000 $22,000
Finished goods $26,000 $41,000
The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of
the year, the company estimated that it would work 38,000 machine-hours and incur $266,000 in manufacturing overhead
cost. The following transactions were recorded for the year: Raw materials were purchased, $300,000.
Raw materials were requisitioned for use in production, $297,000 $ (281,000 direct and $16,000 indirect).
The following employee costs were incurred: direct labor, $389,000; indirect labor, $62,000; and administrative salaries,
$176,000.
Selling costs, $160,000.
Factory utility costs, $19,000.
Depreciation for the year was $143,000 of which $137,000 is related to factory operations and $6,000 is related to selling,
general, and administrative activities.
Manufacturing overhead was applied to jobs. The actual level of activity for the year was 34,000 machine-hours.
Sales for the year totaled $1,283,000
On the basis of the above data, you are required to do the following:
i) Prepare a schedule of cost of goods manufactured in good form.
ii) Was the overhead underapplied or overapplied? By how much?
iii) Prepare an income statement for the year in good form. The company closes any underapplied or overapplied
overhead to Cost of Goods Sold.
Predetermined overhead rate = Estimated manufacturing overhead / Estimated machine hours
Predetermined overhead rate = $266,000 / 38,000 = $7 per machine hour

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1.
Schedule of Cost of Goods Manufactured
Beginning raw material $21,000
Raw material purchases 300,000
Ending raw material -24,000
Raw material used 297,000
Indirect material -16,000
Direct material used 281,000
Direct labor 389,000
Manufacturing overhead applied (34,000*$7) 238,000
Total manufacturing cost 908,000
Beginning work in process 40,000
Ending work in process -22,000
Cost of goods manufactured $926,000
2.
Actual manufacturing overhead
Indirect material $16,000
Indirect labor 62,000
Factory utility cost 19,000
Depreciation - Factory 137,000
Total actual manufacturing overhead $234,000
Overhead is over applied by $4,000 ($238,000-234,000)
3.
Cost of Goods Sold
Cost of goods manufactured $926,000
Beginning finished goods 26,000
Cost of goods available for sale 952,000
Ending finished goods -41,000
Unadjusted cost of goods sold 911,000
Over applied overhead -4,000
Adjusted cost of goods sold $907,000
ARNOLD COMPANY
Income Statement
Sales $1,283,000
Cost of goods sold 907,000
Gross margin 376,000
Selling and administrative expenses:
Administrative salaries $176,000
Selling cost 160,000
Depreciation 6,000
Total selling and administrative expenses 342,000
Net income $34,000
Question:The 4Es Ltd. estimates its expenses for the coming year as follows:
Sales commission: $150,000;
Direct labor costs: $110,000;

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Salary for factory supervisor: $70,000;

Factory space rent: $32,000;
Direct materials cost: $30,000;
Product advertising costs: $22,000;
Indirect material costs in the factory: $10,000.
The company estimates 16,000 direct labor hours are employed during the year. If manufacturing overheads are applied
based on direct labor hours, the estimated manufacturing overheads per direct labor hour is:
The estimated manufacturing overheads per direct labor hour is: $ 7
Salary of factory supervisor:$ 70,000
Factory space rent 32,000
Indirect materials cost 10,000
Total expected factory overhead $ 112,000
Expected direct labor hours 16,000
Manufacturing overhead per direct labor hour ( $ 112,000 / 16,000 DLH )
=>Answer: $ 7 per DLH
Question:Production costs of product X have been classified in various ways:

Prime costs: $50.80 per unit
Variable costs: $54.44 per unit
Fixed overheads: $15.20 per direct labour hour
Direct labour 2.6 hours per unit at $12.00 per hour
Variable overheads $1.40 per direct labour hour
Direct materials $19.60 per unit
What is the total production cost per unit of product X?
=>The total production cost per unit = variable costs + fixed overheads = $54.44+$39.52= 93.96
Question: 4Es Corporation uses direct labour- hours in its predetermined overhead rate. At the beginning of the year, the
total estimated manufacturing overhead was 221,100. At the end of the year, actual direct labor-hours for the year were
14,400 hours, manufacturing overhead for the year was underapplied by $21,500, and the actual manufacturing overhead
was $216,100. The predetermined overhead rate for the year must have been closest to:
Underapplied (overapplied) manufacturing overhead = Actual manufacturing overhead −
Manufacturing overhead applied
Manufacturing overhead applied = Actual manufacturing overhead − Underapplied
manufacturing overhead = $216,100 − $21,500= $194,600
Predetermined overhead rate = Estimated total manufacturing overhead ÷ Estimated total amount of the
allocation base = $194600 ÷ 14400 direct labor-hours = $13.51 per direct labor-hour
Question: Dagger Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year,
the total estimated manufacturing overhead was $248,800. At the end of the year, actual direct labor-hours for the year
were 16,800 hours, manufacturing overhead for the year was underapplied by $17,000, and the actual manufacturing
overhead was $243,800. The predetermined overhead rate for the year must have been closest to:
a.$13.50 b.$14.16 c.$12.63 d.$14.44
Underapplied (overapplied) manufacturing overhead = Actual manufacturing overhead −
Manufacturing overhead applied
Manufacturing overhead applied = Actual manufacturing overhead − Underapplied
manufacturing overhead = $243,800 − $17,000= $226,800
Predetermined overhead rate = Estimated total manufacturing overhead ÷ Estimated total amount of the
allocation base = $226,800 ÷ 16,800 direct labor-hours = $13.50 per direct labor-hour

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Question: Unistar Manufacturing Company produces nameplates and uses a job-order cost system. The following
amounts relate to nameplate production for the month of June:
- Work in process inventory, June 1: $620
- Cost of materials directly assigned to production during june :$1,800
- cost of labor directly assigned to production during june :$1,200 cost of nameplates completed during june :
$4,300
UniStar applies overhead at a predetermined overhead rate of 60% of direct material cost. at the end of june, only one job
was in work in process inventory. this job had been charged with $150 of direct material cost. What is the direct labor cost
assigned to this job?
a) $100 b) $160 c) $225 d) $530
Work in processs $620
Add:- Materials Cost $1,800
Add:- Labor Cost $1,200
Add:- Applied Overhead (60% of Labor)$1,080
Less:- Cost of nameplates $4,300
Balance of Work in process $400
Less:- Direct materials cost charges $150
Less;- overhead (60% of 150) $90
Total Direct Labor cost assigned $160
Question:Senuel Inc. has provided the following data for the month of December. There were no beginning inventories,
conssequently, the direct materials, direct labor and manufacturing overhead applied listed below are all for the current
month.
Work In Process Finished Goods Cost of Goods Goods Sold Total
Direct materials $4,080 $18,630 66,240 88,950
Direct labor 5,380 24,300 86,400 116,080
Manufacturing 3,780 13,230 45,990 63,000
overhead applied
Total $13,240 $56,160 $198,630 $268,030
Manufacturing overhead for the month was overapplied by $12,000.
The Corporation allocates any underapplied or overapplied manufacturing overhead among work in process, finished
goods, and cost of goods sold at the end of the month on the basis of the manufacturing overhead applied during the
month in those accounts. The journal entry to record the allocation of any underapplied or overapplied manufacturing
overhead for December would include the following:
A)Debit to Finished Goods of $56,160
B)credit to Finished Goods of $56,160
C)Debit to Finished Goods of $2,520
D) credit to Finished Goods of $2,520
Manufacturing overhead 12000

Work In Process 720 =12000/63000*3780
Finished Goods 2520 =12000/63000*13230
Cost of Goods Sold 8760 =12000/63000*45990
Option credit to Finished Goods of $2,520 is correct
Question: Fill in the blanks with the appropriate words below:

A cost object is anything for which a measurement of costs is desired
A cost pool is a grouping of individual indirect cost items
Assigning direct costs to a cost object is call cost allocation
Cost allocation is the process of distributing indirect costs to product

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A cost application base links an indirect cost to a cost object
Question: Walter Company uses a job-order costing system to account for product costs. The following Information
pertains to 2007:
Materials placed into production: £140,000
indirect labor: 40,000
direct labor (10,000 hours): 160,000
Depreciation of factory building: 60,000
Other factory overhead: 100,000
Increase in work-in-progress inventory: 30,000
Factory overhead rate is £18 per direct labor hour.
a.What is the total amount credited to Materials (Stores ledger account) for Walter in 2007?
=> 140,000
b. What is the total amount debited to Finished Goods Inventory in the current year?
The amount debited will be equal to the COGM which is the cost of goods manufactured.
COGM = begining WIP + cost added - ending WIP
we need to know the cost added during the period:
cost added during the period
materials 140,000
direct labor 160,000
overhead applied 18 x 10,000 = 180,000
total 480,000
Notice, for the overhead we multiply the predetermined rate by the amount of labor hours.
The actual values and adjustment for application of overhead are calculate later at year-end
Now, we are given the following information:
we know that WIP increase by 30,000
so : ending is 30,000 dollars greater than beginning
which implies ending - beginning = -30,000
we plug that into the formula:
COGM = cost added + (beginning WIP - ending WIP)
COGM = 480,000 - 30,000 = 450,000
c.Which entry is recorded to account for direct labour cost?
=>Dr Work in Process Cr Wages Payable
Question: Er Inc. has provided the following data for the month of March. The balance in the Finished Goods inventory
account at the beginning of the month was $43,000 and at the end of the month was $42,000. The cost of goods sold
manufactured for the month was $221,000. The actual manufacturing overhead cost incurred was $45,000 and the
manufacturing overhead cost applied to WIP was $49,000. The adjusted cost of goods sold that would appear on the
income statement for March is:
a. 222,000$ b. 226,000$ c.222,000$ d.221,000$ e. All are incorrect
Unadjusted cost of goods sold = Opening finished goods inventory + Cost of goods manufactured - Closing finished
goods inventory=43,000 + 221,000 - 42,000=$222,000
Amount to be adjusted to cost of goods sold = Applied manufacturing overhead - Actual manufacturing overhead=
49,000 - 45,000=$4,000
Adjusted cost of goods sold = Unadjusted cost of goods sold - Amount to be adjusted to cost of goods sold=222,000 -
4,000 = $218,000
Option E is correct.

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Question: Whether a company uses process costing or job-order costing depends on its industry. Several
companies in different industries are listed below.
i. Coal mining company.

->process costing.
ii. Contract printer that produces posters, books, and pamphlets to order.
->job order costing
iii. Natural gas production company.
-> process costing
iv. A costume maker that makes specialty costumes for figure skaters.
-> job order costing
v. Dairy farm.
-> job order costing.
vi. Potato chip manufacturer.
-> process costing.
=> Costing methods
Job order costing
The technique of costing where the work has been done to perform a specialized work or job in accordance with the
customer requirements is referred to as the job order costing.
Process costing
The technique of costing used by large production entities dealing in manufacturing of identical products through number
of processes or departments is referred to as the process costing.
Question: The following information relates to Mazar Manufacturing Company:

-Total estimated manufacturing overhead at beginning of year: $620,000
-Total manufacturing overhead applied to production during the year: $625,000
-Total manufacturing overhead incurred during the year: $618,000
The company closes out the balance in the Manufacturing Overhead to Cost of Good Sold at the end of the year. In the
journal entry to close out the balance, the company would Credit cost of goods sold for 7000$ ( 625,000-618,000)
Manufacturing Overhead 7000
Cost of good Sold 7000
(to Record Closing of overapplied Overhead to COGS)
Question: Sagon Corporation has provided data concerning the Corporation's Manufacturing Overhead account for the
month of September. Prior to the closing of the overapplied or underapplied balance to Cost of Goods Sold, the total of
the debits to the Manufacturing Overhead account was $76,000 and the total of the credits to the account was $66,000.
Which of the following statements is true?
a. Manufacturing overhead transferred from Finished Goods to Cost of Goods Sold during the month was $76,000.
b. Actual manufacturing overhead incurred during the month was $66,000.
c. Manufacturing overhead applied to Work in Process for the month was $76,000.
d. Manufacturing overhead for the month was underapplied by $10,000.
=>The total of the debits to the manufacturing overhead account was $76,000 and the total of the credits to the account
was $66,000.
This implies that the manufacturing overhead for the month was underapplied by ($76000 - $66000)= $10000. The
manufacturing overhead debit balance shows that manufacturing overhead was simply underapplied in this case.
Question: Determined whether these statements below are True or False:

-On the Schedule of Cost of Goods Manufactured, the final Cost of Goods Manufactured figure represents the amount of
cost of goods completed during the current year whether they were started before or during the current year => True

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-The assignment of direct labour costs to individual jobs is based on the estimated time spent on each job multiplied by
the wage rate.=> True
-In a job- order cost system, salaries for factory supervisor should be charged directly to the work Work in process
account. => False
-Hospital would be most likely to use a job- order costing system => False
-In a job- order system, indirect labor is assigned to a job by using the labor time ticket as a source document. => True
Question:Alv Inc. has provided the following data for the month of April. There were no beginning inventories,
consequently, the direct materials, direct labor and manufacturing overhead applied listed below are all for the current
month.
Work In Process Finished Goods Cost of Goods Goods Sold Total
Direct materials $7,440 $13,300 35,150 55890
Direct labor 7,560 18,200 48,100 73,860

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Manufacturing 5,700 8,740 25,560 38000

overhead applied
Total $20,700 $40,240 $106,810 $167,750
month in those accounts.
The work in process inventory at the April after allocation of any underapplied or over applied overhead for the month is
Closet to:
The journal entry to record the allocation of any underapplied or overapplied manufacturing overhead for December
would include the following:
Manufacturing overhead 2000
Work In Process 2000/38000*5700=300
Finished Goods 2000/38000*8470= 445.78
Cost of Goods Sold 2000/38000*25560=1345.26
Question:A company expected its annual overhead costs to be $750,000 and machine hours to equal 100,000 hours.
Actual overhead was $745,000, and actual machine hours totalled 97,000 hours. 32. How much is the company’s
predetermined overhead rate to the nearest cent, assuming overhead is applied based on machine hours?
a) $7.45 b) $7.50 c) $7.68 d) $7.73
33. How much overhead was applied?
a) $722,650 b) $727,500 c) $749,810 d) $768,000
34. How much overhead was over- or under-applied?
a) $17,500 under-applied b) $22,500 under-applied c) $23,000 over-applied d) $4,810 under-applied
Explanation :
Overhead Recovery Rate = Budgeted Overhead / Budgeted Hours= ( $750,000/100,000 hours)= $7.5 Per hour
Applied overhead = Actual hours x Budgeted Overhead rate= 97,000 hours x $7.5 per hour= $727,500
Question 9
Correct option is A - $17,500 underapplied
Explanation :
A. Actual Overhead $745,000
B. Applied Overhead $727,500
C. Underapplied Overhead ( A-B) $17,500
Question: Use the following information to answer the next 2 questions: Payne Company developed the following data
for the current year:
Beginning work in process inventory ........ $ 68,000
Direct materials used .................................. 104,000
Actual overhead ......................................... 88,000
Overhead applied ....................................... 92,000
Cost of goods manufactured ...................... 450,000
Total manufacturing costs .......................... 428,000
35. How much is Payne Company's direct labour cost for the year?
a) $254,000 b) $300,000 c) $232,000 d) $164,000
36. How much is Payne Company's ending work in process inventory for the year?
a) $46,000 b) $242,000 c) $42,000 d) $186,000
Question: Kubinski Inc. has provided the following data for the month of September. There were no beginning
inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for
the current month.

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month in those accounts. The journal entry to record the allocation of any underapplied or overapplied manufacturing
overhead for September would include the following:
A. debit to Finished Goods of $33,090
B. debit to Finished Goods of $300
C. credit to Finished Goods of $33,090
D. credit to Finished Goods of $300
=>Manufacturing overhead cost account Dr::$2000
. To work in progress account::$240
. To Finished goods account ::$300 = 2000/40000*6000
. To. Cost of goods sold Account ::$1460 = 2000/40000*29200
WEEK 5: CHAPTER 9: Process costing

Question:Kurtulus Corporation uses the weighted-average method in its process
costing system. Data concerning the first processing department for the most recent
month are listed below:
Beginning work in process inventory:

Units in beginning work in process inventory 600
Materials costs $ 7,000
Conversion costs $ 2,300
Percent complete with respect to materials 55 %
Percent complete with respect to conversion 25 %
Units started into production during the month 6,500
Units transferred to the next department during the month 5,700
Materials costs added during the month $ 110,100
Conversion costs added during the month $ 83,200
Ending work in process inventory:
Units in ending work in process inventory 1,400
Percent complete with respect to materials 70 %
Percent complete with respect to conversion 55 %
a. The total cost transferred from the first processing department to the next
processing department during the month is closest to:
b. The cost of ending work in process inventory in the first processing department
according to the company’s cost system is closest to: (Round your intermediate
calculations to 3 decimal places.)
First step is to calculate Equivalent units of production
Units transferred to the next department 5700 ; 5700
Ending work in process:
Materials: 1400 units × 70%= 980

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Conversion: 1400 units × 55% =770

Equivalent units of production 6680 ; 6470 ( 5700 + 980) ; ( 5700 + 770) ( b)
Second step is to calculate Cost per equivalent unit

Materials Conversion
Cost of beginning work in process inventory $7000 ; $2300
Costs added during the period $110,100 $83,200
Total cost (a) $117,100 $85,500 ( 110,100+7000; 83,200+2300)
Equivalent units of production (b) 6680 ; 6470
Cost per equivalent unit (a) ÷ (b) $17.52 ($117100/6680) $13.21 ( 85,500/6470)
Last step is to calculate Cost of units completed and transferred out

Material Conversion Total
Units completed and transferred out:
Units transferred to the next department (a) 5700 ; 5700
Cost per equivalent unit (b) $17.52; $13.21
Cost of units completed and transferred out (a) × (b) $99,864; $75,297
Total=$99,864 + $75,297 = $175, 161
a. Therefore The total cost transferred from the first processing department to the next
processing department during the month is closest to $ $175, 161
b. Ending work in process inventory:
Equivalent units of production (a)980;770
Cost per equivalent unit (b) $ $17.52; $13.21
Cost of ending work in process inventory (a) × (b) 17196.6/$10171.7
Total cost of ending inventory : 17196.6+ $10171.7 = 27368.3
=> All are incorrect
Question:Puri Corporation uses the FIFO method in its process costing system. Data
concerning the first processing department for the most recent month are listed below:
Units in beginning work in process inventory:400
Materials costs : $4,800
Conversion costs : $3,300
Percent complete with respect to materials :85%
Percent complete with respect to conversion : 45%
Units started into production during the month : 5,800
Units transferred to the next department during the month : 5,100
Materials costs added during the month : $69,500
Conversion costs added during the month $82,300
Ending work in process inventory
Units in ending work in process inventory: :1,100
Percent complete with respect to materials : 55%
Percent complete with respect to conversion: 45%
1.The cost per equivalent unit for conversion costs for the first department for
the month is closet to:
=>Answer 15.20$

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2.What are the equivalent unit for materials for the month in the first
processing department?
=>Answer: 5,365
IN OUT Equival
Equival ent
ent Unit Units
Materia Convers
l ion
Particu Unit Particulars Unit % Equival %Compl Equiv

lars Comple ent ete alent
te unit unit
Beginn 400 Beginning 400 15% 60 55 220

ing WIP
WIP completed
Units 580 Production 4700 100% 4700 100% 4700

Introdu 0 started and
ced Completed (
5800- 1100)
Ending WIP 1100 55% 605 45% 495
Total 620 6200 5365 5415

0
Prepare cost per equivalent unit for conversion costs for the first department for the
month is closest to:
Cost Statement
Current
Equivalents unit period cost Cost per unit
(A) incurred (B) (B/A)
Material 5365 $69,500 $12.95
Conversion 5415 $82,300 $15.20
Question:Mullins Corporation uses the FIFO method in its process costing system. Data
concerning the first processing department for the most recent month are listed below:
Units in beginning work in process inventory: 700

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Materials costs : $ 11,500

Conversion costs : $22,200
Percent complete with respect to materials :75%
Percent complete with respect to conversion : 65%
Units started into production during the month : 8,600
Units transferred to the next department during the month : 7,800
Materials costs added during the month : $159,300
Conversion costs added during the month $348,500
Ending work in process inventory
Units in ending work in process inventory: :1,500
Percent complete with respect to materials : 65%
Percent complete with respect to conversion: 50%
The cost of ending work in process inventory in the first processing department
according to the company’s cost system is closest to:
=> Answer: $51,114 => Choose C
Step 1: Caluclation of Physical UNITS

Units in begining inventory 700
Units started during the period 8,600
Units to be accounted for 9,300
Actual Equivalent
Equivalent Units Units Units
Material CC
Units Completed and

Transferred 7,800
From units in beginning

inventory 700 175 245
From units started 7,100 7,100 7,100
Units in ending inventory 1,500 975 750
Total accounted for 9,300 8,250 8,095

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What are the equivalent units for materials for the month in the first
processing department?
=> 8,250
What are the equivalent units for conversion costs for the month in the first
processing department?=>8,095
Cost:
Total Material CC
Costs in beginning
inventory 0 0 0
Cost added during the

year 507,800 159,300 348,500
Total cost to account for 507,800 159,300 348,500
Equivalent Units from

above 8,250 8,095
Cost per equivalent unit 62.360 19.309 43.051
Cost of ending work in

process
=>The cost per equivalent unit for materials for the month in the first
processing department is closest to: $19.31
Material Cost/Equivalent units=159,300/8,250=$19.31
=>The cost per equivalent unit for conversion costs for the first department for
the month is closest to:$43.05
Conversion Cost/Equivalent units=348,000/8,095=$43.05
=>The cost per equivalent whole unit for the month in the first processing
department is closest to: =$19.31+$43.05=$62.36
=>The total cost transferred from the first processing department to the next
processing department during the month is closest to:=$62.36 x 7800=
490,382$

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=Total Cost - Transferred Cost

=$541,500 - $490,382
=$51,118
Question:A company manufactures Chemical X, in a single process. At the start of the

month there was no work-in progress. During the month 300 litres of raw material were
input into the process at a total cost of $6,000. Conversion costs during the month
amounted to $4,500. At the end of the month 250 litres of Chemical X were transferred
to finished goods inventory. The remaining work-in-progress was 100% complete with
respect to materials and 50% complete with respect to conversion costs. There were no
losses in the process and there is no scrap value available during months when losses
occur.
If there had been a normal process loss of 10% of input during the month what would
the value of this loss have been?
Answer is Zero.The Normal loss doesn't have any Process cost. In the question, there
is no mention of a scrap value available for any kind of losses , that's why here the
value of loss is Nil.
What are the equivalent units for closing work-in-progress at the end of the month?
Answer:50 litres material and and 25 litres conversion costs (equivalent liters).
They have are only 50% finished in respect of conversion costs, so only 50% of the work
has been done on these 50 litres. Doing 50% work on 50 litres will cost the same in
total as doing the full work on 50% x 50 = 25 litres.
Question:All production costs have been steadily rising in the A company for several
periods. The company maintains large work in process inventories. the Company’s cost
per unit computed using the FIFO method would be higher than that computed under
the weighted- average method.
Question: The total units accounted for equals units in:

A. Beginning work in process - units transferred out
B. Beginning work in process + ending work in process
C. Ending work in process + units transferred out
D. Ending work in process - units started into production
Question: Hall Company uses the weighted average method in its process costing
system. The production department started the month with 20,000,000 VND of direct
materials costs in this beginning work in process inventory. A total of VND 160,000,000
in direct materials costs were incurred in the production department during the month.
Direct materials costs fulfilled at the start of production process. As at month- end,
there were 60 units completed in the production department, 20 units in the ending
work in process inventory that were 50% completion, 10 units treated as normal losses
as they are substandard:
The direct material cost ending work in process inventory in the production department
according to the company’s cost system is closet to:

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Question: Jordana Woolens is a manufacturer of wool cloth. The information for March
is as follows:
Beginning work in process 10,000

units
Units started 20,000

units
Units completed 25,000

units
Beginning work-in-process direct $ 6,000

materials
Beginning work-in-process $ 2,600

conversion
Direct materials added during $30,000

month
Direct manufacturing labor during $12,000

month
Factory overhead $ 5,000
Beginning work in process was half converted as to labor and overhead. Direct
materials are added at the beginning of the process. All conversion costs are incurred
evenly throughout the process. Ending work in process was 60% complete.
Required:
Prepare a production cost worksheet using the weighted-average method. Include any
necessary supporting schedules.

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Answer: PRODUCTION COST WORKSHEET
Flow of production Physica Direct Conversi

l units Materials on
Work in process, 10,000

beginning
Started during period 20,00
To account for 30,000
Units completed 25,000 25,000
Work in process, 5,000 5,000 3,000

ending
Accounted for 30,000 30,000 28,000
Costs Total Direct Conversi

Materials on
Work in process, $ 6,000 $ 2,600

beginning
Costs added during 47,000 30,000 17,000

period
Total costs to account $55,60 $36,000 $19,600

for 0

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Divided by equivalent 30,000 28,000

units
Equivalent unit costs $ 1.90 $ 1.20 $ 0.70
Assignment of costs
Costs transferred out (25,000 x $47,50

$1.90) 0
Work in process, ending
Direct materials (5,000 x $1.20) 6,000
Conversion (5,000 x $0.70 x 2,100

0.60)
Costs accounted for $55,60

0
Question: The A Company uses the FIFO method and normal costing approach in its
process costing system. According to the company’s record, the direct labor costs in
the beginning work in process inventory was VND 276,240,000 at the beginning of
June. Additional direct labour costs of VND 27,624,000 were incurred during the
month. The A Company started June with 500 units in its beginning work in process
inventory that were 40% complete with respect to direct labour costs. There were
18000 finished good in June. There were 880 units in the ending work in process
inventory that were 30% complete with respect to direct lanour costs.
What was the cost per equivalent unit for direct labour costs for the month?
Question:The information below was obtained from the records of one of the
departments of Cushing Corporation for the month of August. The company uses the
FIFO method in its process costing system.

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Units Percent Complete Labor and Overhead

Work in process, August 1 10,000 25 %
Units completed and transferred out 75,000
Work in process, August 31 20,000 50 %
All materials are added at the beginning of the process.
The equivalent units for materials for the month of August are:
Multiple Choice
a.85,000 units b.95,000 units c. 75,000 units c.87,500 units
EUP
EUP - FIFO Method Units % Material Materials
Units of ENDING WIP 20,000 100.0% 20,000
65,000
65,000
Units STARTED & COMPLETED [75000 – 10000] 100%
Units of beginning WIP 10,000 0.00% -
Equivalent Units of Production 85,000

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Question: X plc makes one product, which passes through a single process. Details of
the process areas follows:Materials: 5,000 kg at 50p per kg. Labour: £800. Production
overheads 200% of labourNormal losses are 20 percent of input in the process, and
without further processing anylosses can be sold as scrap for 30p per kg. The output
for the period was 3,800 kg from theprocess. There was no work-in-progress at the
beginning or end of the period.What is the value of the abnormal loss?
Process Account
Unit Amount Units Amo

s unt
Direct materials 5,00 2,500 Normal loss ( 1,000 0

0 ( 5000*0.5) 5000*20%)
Direct labor 800 Abnormal loss 200 245

( 5,000-1,000-3,800)
Production 1,600 Transfer to finished 3,800 4,65

overhead goods 5
(800*200%)
5,00 4,900 5,000 4,90

0 0
Abnormal loss unit = Input - Normal loss - Output
= 5,000-1,000-3,800
= 200 Kg
Abnormal loss ={(4,900-0)/(5,000-1,000)}/ x 200 = $245
Question: Williams Corporation uses the FIFO method in its process costing system.
The beginning work in process inventory in a particular department consisted of 10,000
units, 100% complete with respect to materials and 60% with respect to conversion
costs. The total cost in the beginning work in process inventory was $48,200.During
the month, 25,000 units were transferred out of the department.

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The costs per equivalent unit were computed to be $3.10 for materials and $4.50 for
conversion costs.
The total cost of the units completed and transferred out of the department was:
a) $189,200 b) $190,000 c) $180,200 d) $132,000
The total cost of the units completed and transferred out of the department was =
Beginning WIP cost + Cost of unit started & completed
(48200 + 10000*40%*4.50) + (25000-10000)*(3.10+4.50)= $ 180200
Question: Production costs of product X have been classified in various ways:

Prime costs: $50.80 per unit
Variable costs: $54.44 per unit
Fixed overheads: $15.20 per direct labour hour
Direct labour 2.6 hours per unit at $12.00 per hour
Variable overheads $1.40 per direct labour hour
Direct materials $19.60 per unit
What is the total production cost per unit of product X?
=>The total production cost per unit = variable costs + fixed overheads = $54.44+
$39.52= 93.96
Question:Annenbaum Corporation uses the weighted-average method in its process

costing system. This month, the beginning inventory in the first processing department
consisted of 400 units. The costs and percentage completion of these units in beginning
inventory were:
Cost Percent Complete
Materials costs $ 5,700 65%
Conversion costs $ 6,800 45%
A total of 6,500 units were started and 5,900 units were transferred to the second
processing department during the month. The following costs were incurred in the first
processing department during the month:
Cost
Materials costs $ 125,500
Conversion costs $ 207,000
The ending inventory was 50% complete with respect to materials and 35% complete
with respect to conversion costs. The cost of ending work in process inventory in the
first processing department according to the company’s cost system is closest to
a. $27,354 b.All are incorrect c. $22,223 d. $54,708
Units in ending inventory:= 400 + 6500 - 5,900= 1,000
First step is to calculate Equivalent units of production
Units transferred to the next department 5,900 ; 5,900

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Materials: 1000 units × 50%= 500

Conversion: 1000 units × 35% =350
Equivalent units of production 6400; 6250 (b)
Second step is to calculate Cost per equivalent unit
Materials Conversion
Cost of beginning work in process inventory $5700 ; $6800
Costs added during the period $125,500 $207,000
Total cost (a)131200 ; 213,800
Equivalent units of production (b) 6400; 6250
Cost per equivalent unit (a) ÷ (b) $20.5 $34.208
Last step is to calculate Cost of units completed and transferred out

Material Conversion Total
Units completed and transferred out:
Units transferred to the next department (a) 5,900 ; 5,900
Cost per equivalent unit (b) $20.5 $34.208
Cost of units completed and transferred out (a) × (b) $120950; 201827.2
Total= 322777.2
b. Ending work in process inventory:
Equivalent units of production (a)500; 350
Cost per equivalent unit (b)$20.5 $34.208
Cost of ending work in process inventory (a) × (b)=10250/ 11972.8
Total cost of ending inventory : 22222.8
=> Answer C
Question: In process costing, if an abnormal loss arises, the process account is

generally.
A. Debited with the scrap value of the abnormal loss units
B. Debited with the full production cost of the abnormal loss units
C. Credited with the scrap value of the abnormal loss units
D. Credited with the full production cost of the abnormal loss units
Answer: Option D. In process costing, if an abnormal loss arises, the process account is
generally credited with the full production cost of the abnormal loss units. Abnormal
loss (a cost) is credited to the process account and abnormal gain (a benefit) is debited
to the process account.
Question: C Company uses the FIFO method in its process costing system. The
Assembly Department started the month with 2,000 units in its beginning work in
process inventory that were 60% complete with respect to conversion costs. An
additional 66,000 units were transferred in from the prior department during the
month to begin processing in the Assembly Department. There were 9,000 units in the
ending work in process inventory of the Assembly Department that were 50% complete
with respect to conversion costs. What were the equivalent units for conversion costs in
the Assembly Department for the month?
Conversion: 2,000 units (100% – 60%) 800

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Units started and completed 66,000 – 9,000= 57,000

Conversion: 9,000 units* 50% = 4,500
Equivalent units of production =62,300
Question: Williams Corporation uses the FIFO method in its process costing system.
The beginning work in process inventory in a particular department consisted of 10,000
units, 100% complete with respect to materials and 60% with respect to conversion
costs. The total cost in the beginning work in process inventory was $48,200.During the
month, 25,000 units were transferred out of the department.
The costs per equivalent unit were computed to be $3.10 for materials and $4.50 for
conversion costs.
The total cost of the units completed and transferred out of the department was:
a) $189,200 b) $190,000 c) $180,200 d) $132,000
Beginning WIP cost + Cost of unit started & completed
(48200 + 10000*40%*4.50) + (25000-10000)*(3.10+4.50)= $ 180200
Question: Owens Corporation uses a process costing system. For March, the beginning
work in process inventory consisted of 60,000 units that were 60% complete with
respect to processing. The ending work in process inventory for the month consisted of
units that were 20% complete with respect to processing. A summary of unit and cost
data for the month follows:
Units Processing Cost
Work-in-process inventory, March 1 60,000 $ 35,000
Units started into production and costs
incurred during the month 190,000 $ 700,000
Units completed and transferred out 200,000
Assuming that Owens Corporation uses the FIFO method, which of the following is
closest to the cost per equivalent unit for processing cost for March?
A) $3.23 B) $3.98 C) $4.02 D) $4.22
The computation of cost per equivalent unit for processing cost for March is shown
below:-
As we know that
Beginning work in process inventory units + Units started into production =

Ending work in process inventory units + Units completed and transferred out
60,000 + 190,000 = Units in ending work in process inventory + 200,000
Units in ending work in process inventory is = 60,000 + 190,000 - 200,000 = 50,000
To complete the beginning work in process inventory:-
Processing: 24,000

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60,000 units ×(100% - 60%) a
Units started and completed 140,000
(200,000 − 60,000) b
Ending work in process inventory Processing:
50,000 units × 20% c 10,000
Equivalent units of production 174,000
Cost added throughout the period e 7,00,000
Equivalent units of production f 174,000
Cost per equivalent unit e ÷ f $4.02
Question: Activities in the Challenger Corporation’s Assembly Department for the

month of March follow:
Percent Complete
Units Materials
Conversion
Work in process inventory, March 1 5,000 65% 30%
Started into production during March 65,000
Work in process inventory, March 3 3,000 35% 25%
● Using the weighted-average method, the equivalent units for materials for March
would be:
A) 65,000 B) 67,000 C) 68,050 D) 70,000
Answer: C
Units completed and transferred out = Units in beginning work in process inventory +
Units started intoproduction or transferred in – Units in ending work in process
inventoryUnits completed and transferred out = 5,000 + 65,000 – 3,000 = 67,000
Weighted-average method equivalent units of production
Materials
Units transferred to the next department...................67,000
Ending work in process inventory:Materials: 3,000 units ×35%....................1,050
Equivalent units of production...................................68,050
● Using the FIFO method, the equivalent units for conversion for March would be:
FIFO method equivalent units of production
Conversion
To complete beginning work in process inventory:
Conversion: 5,000 units × (100% – 30%)..............3,500
Units started and completed (65,000 – 3,000)..........62,000
Ending work in process inventory:Conversion: 3,000 units × 25%..............................750
Equivalent units of production...................................66,250

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Question: Sumptuous beer company manufactures beer in two departments,

Fermenting and Bottling. In the fermenting department, ingredients are placed in a
large vat and fermented for three days. The beer is then transferred over to bottling
where it is further purified and bottled. sumptuous uses a FIFO process cost system to
collect costs in both departments. On May 1, the fermenting department had 32,000
gallons (units) in process. These gallons were 100% complete with respect to materials
(ingredients) and 80% complete with respect to conversion cost. During may,
fermenting started an additional 460,000 gallons into production. On May 31,
fermenting had 18,000 gallons in work in process. These gallons were 100% complete
with respect to materials and 60% complete with respect to conversion cost.
What are the fermenting department's equivalent units (gallons) of production related
to materials for may?
=>Answer: 459200
Working - Conversion cost - equivalent units

Opening = 32000× 20% = 6400
Process = ( 460000 - 18000) × 100 % = 442000
WIP. = 18000 × 60% = 10800
Total equivalent conversation cost units = 6400+442000+10800 = 459200 units
WEEK8:CHAPTER
4: Cost-Volume-Profit Relationships
Question: T Inc. has invested $60,000 in new machinery for a new product.They area publicly traded company and they
have a cost of capital of 12%.The product they plan to make is a handheld mini welder and would be an innovative
product in the market.Market research has shown that there is a demand for such a product,since there is a gap as a result
of unfulfilled consumer needs.As such,the market research team believes they will be able to price these mini welders at
an RRP of $80 per unit.Production is due to begin next week,and the production manager feels that as it is a completely
new product,production may be slow to begin with.The Company thinks that the variable cost per unit will be around $50.
Given the information above,TInc. must produce and sell……2000….units in order to breakeven.
The break even point is calculated by the fixed cost by the contribution per unit ( the selling price - the variable cost)
Break even point = FC/ ( selling price - VC)
FC= 60,000; P = 80$; VC = $50
Break even point = 60,000/( 80-50)= 2,000 units
Question: B plc sells units of production for £100, incurring a variable cost per unit of £37.50 and total fixed cost of
£750,000. If the variable cost was to rise by 40% and the fixed overhead reduced by £100,000, what would be the change
in the number of break even units sold (to the nearest unit)?
Existing: £750,000/(£100-£37.50)=12,000
Revised:£650,000/(£100-£52.50)=13,684
Change In Breakeven Units Sold=1,684
=>Breakeven Units Would Rise By 1,684 unit
Question: Cost-volume-profit analysis is used primarily by management

=>As a planning tool

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Question: If both the selling price and variable cost per unit of a product rise by 17%, the breakeven point would
DECREASE
Question: HG plc manufactures four products. The unit cost, selling price and bottle neck resource detail as per unit as
follow Assuming that labour is a unit variable cost,if budgeted unit sales are in the ratio W:2,X:3,Y:3, Z:4 and monthly
fixed costs are budgeted to be £15,000, the number of units of W. What would be sold at the budgeted breakeven point is
nearest to:
A.106 units B.142 units C. 212 units D.283 units
Cách giải:
Contribution per mix = (2 × $7) + (3 × $1) + (3 × $15) + (4 × $11) = $106
∴ Breakeven point in number of mixes = $15,000/$106 = 141.5
∴ Number of W sold at breakeven point = 2 × 141.5 = 283 units
If you chose 142 you took the breakeven number of mixes but did not multiply by 2 to get the number of units of W as
there are 2 units of W in each mix.
If you chose 106 units then this is the contribution per mix. You did not go on then to calculate the BE point or number of
units of W.
If you chose 212 you simply multiplied the contribution per mix by 2 and missed out the intermediate stage of calculating
the breakeven point.
Question: Last year, variable expenses were 60% of total sales and fixed expenses were 10% of total sales. If the
company increases its selling prices by 10%, but if fixed expenses, variable costs per unit, and unit sales remain
unchanged, the effect of the increase in selling price on the company's total contribution margin would be:
=> An increase of 25%
CM (Contribution margin) ratio = 100% - 60%
CM (Contribution margin) ratio = 40%
Assume that original sales price of $10
So, Current Selling Price: $10
Variable Cost: $6* = *$10*60% = $6
Contribution Margin: $4
Increased Selling price: $11= [$10*(1+.10)] = $11

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Variable Cost: 6
New contribution margin:$5
Increase in CM Original CM = ($5 - $4) $4 = 25%
If the company use any selling price (orignal) will increase the CM by 25%.
Question: Pendant Company’s break-even point in sales is $690,000 and its variable
expenses are 60% of sales. If the company had a profit of $10,000 in 2016, its sales
must have been ___.
a. $762,000 b. $665,000 c. $700,000 d. $715,000 e. None of the above.
The correct choice is option D: $715,000
Sales = $715,000
Explanation:
The required computation of sales at $10,000 profit is as below:
Sales = (Profit + Fixed costs)/(Sales - Variable costs) = ($10,000 + $276,000)/(100% -

60%) = $286,00040% = $715,000
Working note:
The required computation of fixed cost is as below:
Break even sales = Fixed costs/(Sales - Variable costs) = Fixed costs/(100%-60%) =

Fixed costs = $609,000 × 40% = $276,000
Note:
● Profit is added to fixed costs and divided by the contribution margin to compute
desired sales.
● The contribution margin is computed by deducting variable costs percentage
from the sales percentage.
● Sales percentage is considered 100%.

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Question: The trainee accountant of a company has plotted the sales volumes and the
profit/ loss of two alternative options.At what volume of sales would a company be
indifferent between the two options in the profit volume chart below?
a.9,000 units b.8,000 units c. 4,000 units d. All are incorrect e. 5,000 units
Question: Company A has sales of $500,000, variable costs of $350,000, and fixed costs of $150,000. Company A has
done what two things?
1.Reached the break-even point.
2.Reached a contribution margin equal to fixed costs.
Question: A company reports the following for a sales volume of 200 units: $100,000 in sales and $80,000 in variable
costs. If the break-even point is 200 units and the company sells 201 units, net profit will be:
$100 = ($100,000 - $80,000)/200
Question: To calculate the degree of leverage, divide ___ ___ by net operating income.
=>contribution margin
Question: Elle's Elephant Shop sells giant stuffed elephants for $55 each. Each elephant has variable costs of $10 and
total fixed costs are $700.
If Ellie sells 35 elephants this month, profits will equal what? => $875 = 35 x ($55 - $10) - $700
If Ellie sells 35 elephants this month, total variable costs equal what? => $350 = (35 x $10)
If Ellie sells 35 elephants this month, total sales equal what?=>$1,925 = 35 x $55
Question: Jazzco Lts sells three product. the budgeted fixed cost for the period is $235,000. the budget sales mix are as
follows

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Product C/M ratio Mix sale

A 22% 30%
B 51% 30%
C 33% 40%
Average C/S ratio = (3 × 22%) + (3x51%) + (4 × 33%)/ (3 + 3 + 4) = 0.351
At breakeven point, contribution = fixed costs
$235000/ Breakeven sales revenue = 0.351
=> Breakeven sales revenue = $669,516
Question: From the options below, select The factors whose changes affect future profit in the context CVP analysis
=> Quantity, sales price, product mix, fixed cost, variable cost
Question: Flower Ltd sells three productS: D,E,F. the product are sold in the proportion D:E:F = 1:2:4. Monthly fixed
cost are $ 42,500 and product details are as follow:
Product Selling price per unit Variable cost per unit
D $42 $22
E $34 17
F 23 8
The company wishes to earn a profit of $ 36,160.
What is the required sales value of product D in order to achieve this target profit
Product Selling price per unit Variable cost per unit CM CM ratio Sale mix
D $42 $22 42-22 = 20 47,62% 1/7
E $34 17 34 - 17 =17 50% 2/7
F 23 8 23 -8 = 15 65,22% 3/7

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Question:A company’s summary budgeted operating statement is as follows:

$000
Revenue : $ 400
Variable costs: $240
Fixed costs:$ 100
Profit: $60
Assuming that the sales mix does not change, the percentage increase in sales volume that would be needed to
increase the profit to $100,000 is
A.10% B.15% C. 25% D.40%
We need to calculate the C/S ratio in order work out the increase in sales needed to have a profit of £100,000.
Contribution ($’000) = 400 –240 = 160
C/S ratio= 160 / 400 = 0.4
Fixed costs will not change with sales and so the extra contribution will achieve the desired profit.
Extra contribution needed is £40,000 and therefore using the C/S ratio we can calculate the increase in sales
needed.
Therefore:$40,000 / 0.4 = $100,000 extra sales needed.
Percentage increase in sales = $100,000 / $400,000 x 100% = 25%
Question: X Ltd provides a single unit the ‘widget’ to its customers. Analysis for the year shows that, when the
budgeted level of activity was 6000 units with a sales value of £250 a unit, the margin of safety was 25%. The
budgeted contribution to sales ratio of the product was 60%.Budgeted fixed costs for the year were?
a)£675,000 b)£775,000 c)£825,000 d)£456,000
Margin of safety 25%

So breakeven sales 6000 –(25% 6000) = 4500 units
Breakeven x Contribution = Fixed Cost
(4500 x £250 x 60%) = Fixed Cost
Fixed Cost = £675,000
Question: If both the selling price and variable cost per unit of a product rises by 20%, the breakeven point
would
a)Increase
b)Decrease
c)Remain constant
d)Would be impossible to calculate without further information
Question:S Ltd sells a single product for £50 a unit. Fixed cost is £450,000 and variable cost is 90% of the
selling price. If fixed cost rises by £50,000 and the contribution to sales ratio changes to 20%, but the sales price
remains the same, the breakeven number of units would decrease by

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a)40000 units b)30000 units c)20000 units d)10000 units

Current breakeven 450,000/(50 x 10% C/S ratio) = 90000 units
New breakeven 500,000/(50 x 20% C/S ratio) = 50000 units
Decreases by 40000 units
Question:Refer to the following break-even graph to answer the next questions.

The alpha character "b" represents the area of profit
The alpha character "d" represents the total cost
Question: Refer the graph which shows the components of break-even.

Required: Match the numbers shown in the graph with the following items:
a.Fixed cost line 5

b.Total cost line 4
c.Break-even point 6
d.Area of profit 2
e.Revenue line 3
f.Area of loss 1
Question: What does the line labeled Y represent in the breakeven chart presented below?
=> Variable cost

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Question: For the coming year, D plc’s variable costs are budgeted to be 60% of sales dollars and fixed costs are
budgeted to be 10% of sales dollars. If sales price increases by 10%, but if total fixed costs, unit variable costs, and sales
volume remains the same, the effect on D plc's marginal contribution would be:
Assume that
Sale dollar =10 => vc=6, fc=1 => cm=4
Price increase 10%=> new price= 11=> mà vc unchange => cm =5
Cm from 4 to 5 => 1,25 => increase 25%
Question: A company sells two products:M and N. The sales mix is expected to be$3.00 of sales of Product M for
every$5.00 of sales of Product N. Product contribution M margin ratio of40% whereas Product Nasa contribution margin
ratio of 50%.Annual fixed expenses are expected to be$259,000.The overall break-even point for the company in dollar
sales is expected to be closest to:
a.$222,000 b.$592,000 c.$370,000 d.$560,000
Weighted average contribution margin = wM * cmM + wN * cmN
Where,
wM and wN represents the weight of both products in the sales mix
cmM and cmN represents the contribution margin ratio of both the products
Total sales per sales mix = 3 + 5 = 8
Weighted average contribution margin = 3/8 * 0.4 + 5/8 * 0.5 = 0.4625
Break even in dollars = 259000 / 0.4625 = $560000
Question: RPlcmanufacturesthreeproducts,which have the following data:

ProductX ProductY ProductZ
Contribution to sales ratio 30% 25% 40%
Maximum sales value (£000) 900 1.000 500
Minimum Sales Value(£000) 100 200 300
There Are Also Fixed Costs of £450,000. The lowest break even sales value,subject to
meeting the above sales value constraints is nearest to:
£1,556,800

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£1,356,700
£1,456,800
£1,366,70
The minimum sales value must be satisfied first.

Sales Contribution
ProductX 100×0.3 30
ProductY 200×0.25 50
ProductZ 300×0.4 120
200
To break even the fixed cost of£450,000needs to be met.£200,000 contribution has
already been met using the minimum sale values,there additional £250,000
contribution still needs to be raised.The most profitable sales in order to minimize sales
would produce the products with the highest C/S ratios.In order Z,X,Y
Sales Contribution
ProductX 100×0.3 30
ProductY 200×0.25 50
ProductZ 300×0.4 120
Product Z 200 x 0.4 80
( remaining sales 500-300)
Product X balance 566.7x0.3 170
1.366.7 450
Question: J Ltd produces and sells two products. The O sells for £12 per unit and has a total variable cost of £7.90, while
the H sells for £17 per unit and has a total variable cost of £11.20. For every four units of O sold, three of H are sold. J
Ltd’s fixed costs are £131,820 per period.Budgeted sales revenue for the next period is £398,500.Calculate the margin of
safety
=> 12,400
Question: Sarri Plc produces and sells three products,X,Y and Z. It has contracts to supplyproductsXandY,which will
utilize all of the specific materials that are available to make these two products during the next period.The revenue these
contracts will generate and the contribution to sales(C/M)ratios of products X and Y are as follows:
Revenue C/M ratio
Product X £10 million 15%
Product Y £20 million 10%
Product Z has a C/M ratio of 25%.The total fixed costs of Sarri Plc are £5.5 million during the next period and
management has budgeted to earn a profit of £1 million.Calculate the revenue that needs to be generated by Product Z for
Saree Plc to achieve the budgeted profit: £3 million.
You are not given volume, but you do not need it.
First solve for the hurdle / target: $5,500,000 + 1,000,000 = 6,500,000
Next, determine the portion already covered by product x and product y.
Product X Contribution Margin = 10,000,000 x 15% = 1,500,000
Product Y Contribution Margin = 20,000,000 x 10% = 2,000,000
Fixed Costs and Profit Left to Cover = 6,500,000 – 1,500,000 – 2,000,000 = 3,000,000
Product Z Contribution Margin = 25% of Revenues

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3,000,000 = 25% x Product Z Revenues

Product Z Revenues = 3,000,000 / 25% = 12,000,000
Question 16: The cost structures of the company A and the company B as follows:
Company A Company B
Variable costs $320,000 $580,000
Fixed costs $640,000 $380,000
Which of the conlusion related to the A and B company is correct?
a. Company A is more profitable and then more attractive to investors than Company B
b. Company A’s profits are less sensitive to percentage changes in sales, otherwise Company B is opposite trend
c Company A is higher risky in bussiness than Company B
d. Company A’s margin of safety and break-even points are all higher than Company B
Explanation:
VC > => more profit because VC change when quantity of products increase => nếu sản xuất nhiều thì investor sẽ thấy
cty mình tiềm năng vì có nhiều đơn đặt hàng, còn Fixed cost thì dù quantity có tăng hay giảm thì vẫn phải trả 1 lượng tiền
như vậy nên nếu muốn xem xét 1 cty nên đầu tư hay ko thì nên focus vào VC của cty đó có cao hay ko (này là tui nhớ bữa
thầy nói z chứ tìm gg ko thấy)
Question 20: R Plc manufactures three products, which have the following data:
Product X Product Y Product Z

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Contribution to sales ratio 30% 25% 40%

Maximum sales value (£000) 900 1,000 500
Minimum sales value (£000) 100 200 300
There are also fixed costs of £450,000
The lowest breakeven sales value, subject to meeting the above sales value constraints is nearest to
A £1,456,800 D All are incorrect
B £1,356,700 E £1,366,700
C £1,556,800
Cách giải:
The minimum sales value must be satisfied first
Sales Contribution
Product X 100 x 0.3 30
Product Y 200 x 0.25 50
Product Z 300 x 0.4 120 200
To breakeven the fixed cost of £450,000 needs to be met. £200,000 contribution has already been met using the minimum
sales values, therefore an additional £250,000 contribution still needs to be raised. The most profitable sales in order to
minimise sales would be to produce the products with the highest C/S ratios. In order Z, X, Y.
Sales Contribution
Product X 100 x 0.3 30

Product Y 200 x 0.25 50
Product Z 300 x 0.4 120
Product Z (remaining sales 500 – 300) 200 x 0.4 80
Product X (Balance) 566.7 x 0.3 170
1,366.7 450
=> Answer: E. £1.366.700
Question: J Ltd produces and sells two products. The O sells for £12 per unit and has a total variable cost of
£7.90, while the H sells for £17 per unit and has a total variable cost of £11.20. For every four units of O sold,
three of H are sold. J Ltd’s fixed costs are £131,820 per period. Budgeted sales revenue for the next period is
£398,500.
Calculate the margin of safety?
=> Answer: 124 euro
Question 17: A manufacturer of food and beverages is considering the following actions. Which of these is likely to
increase its contribution margin ratio?
A. All are incorrect

B. Introducing the programs of total quality management to improve product quality
C. Offering sales team a higher commission if they sell the products which have higher selling prices
D. Reducing exports to countries where there is intense price competition

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Question 15: Crystal Ltd. produces two types of products F and P. The unit that attaches to the F product is sold for $100
and has variable costs of $35. The P product sells for $120 and has variable costs of $30, Crystal Ltd, sells two dollars of
the F product for every three dollars of the P product earned. Fixed costs equal $1,192,800. Crystal Ltd. is considering
buying new production equipment. The new equipment will increase fixed cost by $210,000 per year and will decrease
the Variable cost of the F product and the P product by $5 and $10, respectively. Assuming the same sales mix, what
amount of sale dollars ($) of the whole company is required to earn a target profit of $547,200?
=> Answer:
Question 15: ID Co. provides you with its budgeted profit and loss statement for its next financial year and expects it to
be operating at a capacity of 90%.
It has been estimated that if the selling price per unit was reduced to £20, the increasing demand would utilise 95% of the
company’s capacity without any additional advertising expenditure. Calculate the breakeven point in units, based on the
original budget.
a. All are incorrect

d. 1,181 units
b. 984 units
e. 1425 units
c. 2,566 units
Question: Fowler Company produces a product that sells for $200 per unit and has a variable cost of $125 per unit.
Fowler incurs annual fixed costs of $450,000.
Required:
a. Determine the sales volume in units and dollars required to break even. (Do not round intermediate calculations.)
=> N = ($450,000 + $0) ÷ ($200 − $125) = 6,000 units

Sales in $ = $200 × 6,000 units = $1,200,000

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b. Calculate the break-even point assuming fixed costs increase to $600,000. (Do not round intermediate calculations.)
=> N = ($600,000 + $0) ÷ ($200 − $125) = 8,000 units

Sales in $ = $200 × 8,000 units = $1,600,000
Question: Unistar Computers makes and sells a unique computer that is designed for a specific market. Cost information
relating to that product is shown below:
Sales price $1,500 per unit
Variable costs $ 1,000 per unit
Fixed costs $120,000 total
Unistar expects to make and sell 300 computers. Based on this information, the margin of safety expressed in units is :60
units
Break-even point = Total Fixed Cost ÷ Contribution Margin Per Unit
Break-even point = $120,000 ÷ ($1,500 - $1,000) = 240 units
Margin of safety = Budgeted sales - Break-even sales=300 units - 240 units = 60 units

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WEEK 3: CHAPTER 5: Absorption Costing and

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The correct answer is: $120,000 lower

Opening inv 900

Closing inv 300

Decrease 600 ´ = 120,000 lower

Question:Budgeted production is 24,000 units

a. Fewer than units sold in Year 2.

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Actual overhead incurred: 481,250

Variable costs per unit:

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Fixed manufacturing overhead $ 105,600

Using absorption costing method.)

Fixed Manufacturing cost

($105,600 / 6,600) $16

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A.$67,050 B.$70,050 C.$74,550 D.$77,550

A. $368,000 B. $440,000 C. $344, 000 D. $560,000

Question:Determine the statements below whether are TRUE OR FALSE

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Material cost 13,500

WEEK 4: CHAPTER 8: Job order costing

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actual overhead - applied overhead = under if >0 or over if <0

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to find out debit to Finished Goods Inventory

first we get here overhead that is

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Salary for factory supervisor: $70,000;

Question:Production costs of product X have been classified in various ways:

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Manufacturing overhead 12000

Option credit to Finished Goods of $2,520 is correct

Question: Fill in the blanks with the appropriate words below:

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A cost application base links an indirect cost to a cost object

Factory overhead rate is £18 per direct labor hour.

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i. Coal mining company.

Question: The following information relates to Mazar Manufacturing Company:

Question: Determined whether these statements below are True or False:

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Manufacturing 5,700 8,740 25,560 38000

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Manufacturing overhead for the month was overapplied by $2,000.

WEEK 5: CHAPTER 9: Process costing

Beginning work in process inventory:

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Conversion: 1400 units × 55% =770

Second step is to calculate Cost per equivalent unit

Last step is to calculate Cost of units completed and transferred out

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Particu Unit Particulars Unit % Equival %Compl Equiv

Beginn 400 Beginning 400 15% 60 55 220

Units 580 Production 4700 100% 4700 100% 4700

Ending WIP 1100 55% 605 45% 495