Reference no: EM132558349

Question 1: A company with monthly fixed costs of $180,000 expects to earn monthly operating income of $23,000 by selling 7,000 units per month. What is the company's expected unit contribution margin?

A. The information given is insufficient to determine unit contribution margin.

B. $29 per unit

C. $3 per unit

D. $26 per unit

Question 2: If monthly fixed costs are $21,000 and the contribution margin ratio is 42%, the monthly sales volume required to break even is:

A. $50,000.

B. $58,820.

C. $8,820.

D. $29,820.

Question 3: Burns Industries currently manufactures and sells 23,000 power saws per month, although it has the capacity to produce 38,000 units per month. At the 23,000-unit-per-month level of production, the per-unit cost is $71, consisting of $43 in variable costs and $28 in fixed costs. Burns sells its saws to retail stores for $83 each. Allen Distributors has offered to purchase 5,300 saws per month at a reduced price. Burns can manufacture these additional units with no change in its present level of fixed manufacturing costs.

Using an incremental analysis approach, Burns should consider accepting this special order only if the price per unit offered by Allen is at least:

A. $71.

B. $83.

C. $43.

D. $28.

Question 4: During its first year of operations, Brown Company incurred the following product costs:

Direct materials used in production $175,500

Direct labor $95,400

Manufacturing overhead $100,400

The Brown Company's ending Work in Process Inventory amounted to $37,000 at the end of the year. What is the company's cost of finished goods manufactured for the year?

Multiple Choice

A. $371,300.

B. $175,500.

C. $270,900.

D. $334,300.

Question 5: The following information has been taken from the perpetual inventory system of Elite Mfg. Co. for the month ended August 31:

Purchases of direct materials$72,000

Direct materials used$56,500

Direct labor costs assigned to production$29,000

Manufacturing overhead costs incurred (and applied)$35,000

Balances in inventoryAugust 31August 1Materials$? 42,000 Work in Process$56,000 53,000 Finished Goods$61,000 46,600

The total amount of inventory to be included in Elite's August 31st balance sheet amounts to:

A. $231,000.

B. $174,500.

C. $132,500.

D. Some other amount.

Question 6: The cost of finished goods manufactured in August is:

A. $117,500.

B. Some other amount.

C. $180,500.

D$46,000.

Question 7: The cost of goods sold in August is:

A. $14,400.

B. $164,100.

C. Some other amount.

D. $103,100.