Reference no: EM132534160

Question 1. Direct materials used $120,000 Beginning work in progress $20,000

Direct labor $100,000 Ending work in progress $10,000

Manufacturing overhead $150,000 Beginning finished goods $25,000

Selling Expenses $50,000 Ending finished goods $15,000

What is the conversion cost?

a. $395,000

b. $370,000

c. $425,000

d. $250.000

Question 2. Kello Inc. used a job order costing system. The following information pertains to the current period:

Estimate manufacturing overheads cost at the beginning of the year $100,000

Estimated direct labor hours at beginning of the year 10,000 hours

Actual manufacturing overheads cost incurred during the year $118,000

Actual direct labor hours worked during the year 11,000 hours

Based on the above information, which of the following is a correct result?

a. Overapplied overhead $8000

b. Underapplied overhead $8000

c. Underapplied overhead $18,000

d. Overapplied overhead $18,000

Question 3. On the cash budget, net cash flow can be calculated as _____________

a. All cash inflows less all cash outflows

b. Opening cash balance plus all cash inflows

c. All cash inflows plus all cash outflows

d. Profit less all expense

Question 4. Fixed production overheads are those_____________

a. Indirect cost of production that remains constant regardless of the volume of production

b. Directs cost attributable to the product or service vary regardless of the volume of production

c. Indirect cost of production that vary directly with the volume of production

d. Direct costs attribution to the production or service that remain constant regardless of volume production

Question 5. A firm is expected to have direct materials purchased of $70,000 in the first quarter and $90,000 in the second quarter. 40% of the purchased will be paid for in cash as they occur, and the balance will be paid in the following quarter. Compute the budgeted cash payment for purchases in the second quarter.

a. $78,000

b. $54,000

c. $28,000

d. $72,000