How much is the total manufacturing cost per unit

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Reference no: EM131168667

1. In assigning accumulated costs to the Work In Process Inventory, all of the following would be entries except:

a. raw materials are used.

b. overhead is applied.

c. the purchase of raw materials.

d. factory labor is used.

2. The management function that requires managers to ensure that various departmental activities are coordinated.

a. controlling.

b. directing.

c. planning.

d. constraining.

3. When determining costs of jobs, how does a company account for indirect materials?

a. It is added to work in process as used.

b. It is transferred out of raw materials into manufacturing overhead when used

c. It remains part of raw materials inventory..

d. It is transferred out of raw materials into work in process as used.

4. A process cost system would be used for

a. cereal.

b. advertising

c. patient healthcare.

d. motion pictures.

5. When computing the predetermined overhead rate, the following are used

a. actual monthly costs and actual annual activity.

b. estimated monthly costs and actual monthly activity.

c. estimated annual costs and expected annual activity.

d. estimated annual costs and actual activity

6. Manufacturing overhead costs that are assigned to production in a process cost system are debited to

a. the Finished Goods Inventory account.

b. the Work in Process account.

c. Cost of Goods Sold.

d. a Manufacturing Overhead account.

7. Small amounts of lubricant used in the production process of an auto manufacturer is classified as a(n)

a. period cost.

b. direct material.

c. miscellaneous expense

d. indirect material

8. Increase in automation causes the decline in which component of product cost?

a. Direct materials

b. Direct labor

c. Manufacturing overhead

d. Advertising

9. A process with no beginning work in process, completed and transferred out 65,000 units during a period and had 50,000 units in the ending work in process inventory that were 20% complete. The equivalent units of production for the period were:

a. 80,000 equivalent units.

b. 125,000 equivalent units.

c. 115,000 equivalent units

d. 75,000 equivalent units

10. In applying the high-low method, which months are relevant?

Month Miles Total Cost

May 80,000 $ 96,000

June 50,000 80,000

July 90,000 130,000

August 70,000 94,000
a. May and June

b. May and July

c. June and July

d. June and May

11. Cinder Company had the following department information for the month:

Total materials costs $ 80,000

Equivalent units of materials 10,000

Total conversion costs $120,000

Equivalent units of conversion costs 12,000

How much is the total manufacturing cost per unit?

a $8

b. $18.

c. $15.50

d. $10.00.

12. A source document that is used in assigning cost to the job cost sheet?

a. Materials requisition slip

b. Raw materials receiving slips.

c. Materials purchase orders.

d. Finished goods shipping documents.

13. All of the following are used in process costing except when

a. similar goods are being produced.

b. large volumes are produced.

c. a series of connected manufacturing processes is necessary.

d. products are heterogeneous

14. A cost that changes in total cost but remains constant per unit at various levels of activity is a

a. fixed cost.

b. variable cost.

c. mixed cost.

d. manufacturing cost.

15. Sales are $500,000 and variable costs are $200,000. What is the contribution margin ratio?

a. 40%

b. 20%

c. 60%

d. Cannot be determined because amounts are not expressed per unit.

16. All of the following are done in preparing a production cost report, except?

a. Compute the equivalent units of production.

b. Prepare the job order cost sheet

c. Compute the physical unit flow.

d. Prepare a cost reconciliation schedule.

17. In a job order cost system, accumulating manufacturing costs include all of the following except

a. Cost of goods sold is recorded

b. Raw materials are purchased

c. Factory labor is incurred

d. Manufacturing overhead is incurred

18. Fixed costs normally will not include

a. property taxes

b. labor

c. supervisory salaries

d. depreciation on buildings and equipment.


Millar Company has the following cost records for May 2015

Indirect factory labor $ 10,000 Advertising Expense $ 8,000

Direct materials used 13,000 Depreciation, factory equipment 3,200

Work in process, 5/1/15 4,000 Direct labor 11,000

Work in process, 5/31/15 7,000 Maintenance, office equipment 2,000

Depreciation, office equipment 1,000 Indirect materials 1,200

Sales Commission 10,000 Office Manager Salary 4,000

Instructions Prepare a cost of goods manufactured schedule for May 2015


Cost of Goods Manufactured

Schedule For the Year Ended May 31, 2015


Mottle Inc. fixed costs are expected to be $80,000 and variable costs are expected to be $20 per product. Sales price is $40 per product and targeted net income is $300,000.


a. Determine the required sales in units and dollars to break even.

b. Determine the required sales in units to achieve targeted net income of $300,000.


Marvin Company estimates that annual manufacturing overhead costs will be $900,000. Estimated annual operating activity bases are: direct labor cost $450,000, direct labor hours 300,000, and machine hours 100,000.

a. Compute the predetermined overhead rate for each activity base.

b. If Job 101 has 60,000 direct labor hours, compute the manufacturing overhead that it should be assigned using the predetermined overhead rate computed in question a. above.

c. If Job 102 has 25,000 machine hours, compute the manufacturing overhead that it should be assigned using the predetermined overhead rate computed in question a. above.


Blake Johnson has the following cost and production data for the Mixing Department for December 2013

Cost data:

Beginning work in process inventory, December 1

Direct Materials $30,000

Conversion Cost $ 6,000


Cost incurred during production in December

Direct Materials 390,000

Conversion costs 122,000

Total costs $548,000

Production data

Completed and transferred out 52,000

Ending work in process 8,000

Ending work in process was 100% complete as to materials and 25% complete as to conversion costs.


(a) Compute the equivalent units for materials and conversion costs.

(b) Determine the unit cost for materials and conversion

Reference no: EM131168667


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