practice exam 2
Name: __________________________ Date: _____________
1. Super-Tech Industries had the following department information about physical units and percentage of completion:
Physical Units
Work in process, June 1 (75%)
8,000
Completed and transferred out
18,000
Work in process, June 30 (50%)
12,000
If materials are added at the beginning of the production process, what is the total number of equivalent units for materials during June?
A) 15,000.
B) 30,000.
C) 32,000.
D) 24,000.
2. A department had the following information for the month:
Total materials costs
$210,000
Conversion cost per unit
$3.00
Total manufacturing cost per unit
$5.00
What are the equivalent units of production for materials?
A) 105,000.
B) 70,000.
C) 42,000.
D) Cannot be determined
3. In the month of June, a department had 20,000 units in beginning work in process that were 70% complete. During June, 80,000 units were transferred into production from another department. At the end of June there were 10,000 units in ending work in process that were 40% complete. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. The equivalent units of production for conversion costs for June were
A) 80,000 equivalent units.
B) 94,000 equivalent units.
C) 90,000 equivalent units.
D) 100,000 equivalent units.
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4. In applying the high-low method, what is the fixed cost?
Month
Miles
Total Cost
January
80,000
$144,000
February
50,000
120,000
March
70,000
141,000
April
90,000
195,000
A) $26,250
B) $54,000
C) $21,000
D) $75,000
5. Hollis Industries produces flash drives for computers, which it sells for $20 each. Each flash drive costs $12 of variable costs to make. During April, 1,000 drives were sold.
Fixed costs for March were $2 per unit for a total of $1,000 for the month. How much is the contribution margin ratio?
A) 30%
B) 40%
C) 60%
D) 70%
6. Dunbar Manufacturing 's variable costs are 30% of sales. The company is contemplating
an
1. Super-Tech Industries had the following department information about physical units and percentage of completion:
Physical Units
Work in process, June 1 (75%)
8,000
Completed and transferred out
18,000
Work in process, June 30 (50%)
12,000
If materials are added at the beginning of the production process, what is the total number of equivalent units for materials during June?
A) 15,000.
B) 30,000.
C) 32,000.
D) 24,000.
2. A department had the following information for the month:
Total materials costs
$210,000
Conversion cost per unit
$3.00
Total manufacturing cost per unit
$5.00
What are the equivalent units of production for materials?
A) 105,000.
B) 70,000.
C) 42,000.
D) Cannot be determined
3. In the month of June, a department had 20,000 units in beginning work in process that were 70% complete. During June, 80,000 units were transferred into production from another department. At the end of June there were 10,000 units in ending work in process that were 40% complete. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. The equivalent units of production for conversion costs for June were
A) 80,000 equivalent units.
B) 94,000 equivalent units.
C) 90,000 equivalent units.
D) 100,000 equivalent units.
Page 1
4. In applying the high-low method, what is the fixed cost?
Month
Miles
Total Cost
January
80,000
$144,000
February
50,000
120,000
March
70,000
141,000
April
90,000
195,000
A) $26,250
B) $54,000
C) $21,000
D) $75,000
5. Hollis Industries produces flash drives for computers, which it sells for $20 each. Each flash drive costs $12 of variable costs to make. During April, 1,000 drives were sold.
Fixed costs for March were $2 per unit for a total of $1,000 for the month. How much is the contribution margin ratio?
A) 30%
B) 40%
C) 60%
D) 70%
6. Dunbar Manufacturing 's variable costs are 30% of sales. The company is contemplating
an