When manufacturing overhead is applied to production, it ...



When manufacturing overhead is applied to production, it is added to: (Points: 6)

the Cost of Goods Sold account

the Raw Materials account

the Work in Process account

the Finished Goods inventory account

 

I CHOSE WIP ACCOUNT. I BELIEVE THAT IS CORRECT?

 

 

The variable portion of the cost of electricity for a manufacturing plant is a:

(Points: 6)

Conversion YES... Period NO

Conversion YES .... Period YES

Conversion NO.... Period YES

Conversion NO.... Period NO

 

I DO NOT KNOW

 

 

Within the relevant range, variable costs can be expected to:

(Points: 6)

vary in total in direct proportion to changes in the activity level.

remain constant in total as the activity level changes.

increase on a per unit basis as the activity level increases.

increase on a per unit basis as the activity level decreases.

none of these.

 

DO NOT KNOW

 

 

Under a job-order costing system, the dollar amount transferred from Work in Process to Finished Goods is the sum of the costs charged to all jobs: (Points: 6)

started in process during the period

in process during the period

completed and sold during the period

completed during the period

 

I CHOSE STARTED IN PROCESS DURING THE PERIOD

 

 

Equivalent units for a process costing system using the FIFO method would be equal to: (Points: 6)

units completed during the period plus equivalent units in the ending work in process inventory

units started and completed during the period plus equivalent units in the ending work in process inventory

units completed during the period and transferred out

units started and completed during the period plus equivalent units in the ending work in process inventory plus work needed to complete units in the beginning work in process inventory

Not sure about this one

3. The contribution margin equals: (Points: 6)

Sales - expenses

Sales- cost of goods sold

Sales - variable costs

Sales - fixed costs

4. The break-even point in unit sales is found by dividing total fixed expenses by: (Points: 6)

the contribution margin ratio

the variable expenses per unit

the sales price per unit

the contribution margin per unit

5. In an income statement prepared using the variable costing method, fixed selling and administrative expenses would: (Points: 6)

be used in the computation of the contribution margin

be used in the computation of net operating income but not in the computation of the contribution margin

be treated the same as variable manufacturing expenses

not be used

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