Struggling with this section/questions in my accounting practice quiz

Struggling with this section/questions in my accounting practice quiz

ATTACHMENT PREVIEW

Download attachment

Quiz 6
Q4)
During May, XYZ Company sold 8,000 units and reported the following income statement:
Sales .
………………………
$400,000
Variable costs .
………………
280,000
Fixed costs .
…………………
63,000
Net operating income .
…………
$ 57,000
Calculate the number of units that XYZ Company needed to sell during May to break-even.
Enter your answer as a number (i.e., 1,000). Do not use the $, decimals, or type the word units
after your answer.
Q5)
During May, XYZ Company sold 8,000 units and reported the following income statement:
Sales .
………………………
$400,000
Variable costs .
………………
280,000
Fixed costs .
…………………
63,000
Net operating income .
…………
$ 57,000
Calculate the number of units XYZ Company must sell in order to earn a target profit equal to
20% of sales. Enter your answer as a number (i.e., 1,000). Do not use the $, decimals, or type the
word units after your answer.
Q6)
XYZ Company recorded the following information related to their inventory accounts for
January:
January 1, 2003
January 31, 2003
Direct materials
15,000
?
Work in process
15,000
10,000
Finished goods
?
7,000
Additional information is as follows:
Cost of goods manufactured .
………
$26,000
Direct labor .
…………………..
8,000
Applied overhead .
……………….
10,000
Net income .
…………………….
40,000
S&A expenses .
…………………..
20,000
Sales revenue .
………………….
90,000
Calculate the finished goods inventory balance on January 1. Do not use decimals in your
answer.
Q7)
The following information relates to ABC Company’s utilities cost and activity for the first
six
months of 2001:
Month
Utilities Costs
Units Produced
January
$17,200
6,200
February
14,500
5,300
March
18,600
7,100
April
13,700
4,800
May
15,800
5,900
June
12,900
4,600
ABC Company expects to produce 8,200 units during July. Using the high-low method, calculate
ABC Company’s expected utilities cost for July.
Q8)
Betty DeRose, Inc. uses job order costing. Manufacturing overhead is applied to jobs using a
PDR of 140% of direct labor cost. Additional information is as follows:

Unlock Solution Unlocking…

a.
Job #101 was the only job in process at February 1 with costs as follows:
Direct materials .
………………..
$ 4,000
Direct labor .
……………………
2,000
Applied overhead .
……………….
2,800
Total .
……………………….
$ 8,800
b.
Jobs 102,103 and 104 were started during February
c.
Direct materials used during February totaled $26,000
d.
Direct labor costs of $20,000 were incurred in February
e.
Actual overhead costs incurred during February totaled $32,000
f.
The only job still in process at February 28 was Job #104 with costs of $2,800 for direct
materials and $1,500 for direct labor. Calculate the cost of goods manufactured for February. Do
not use decimals in your answer.
Q9)
ABC Company recorded the following information related to their inventory accounts for
2007:
January 1, 2007
December 31, 2007
Direct materials
?
37,000
Work in process
38,000
41,000
Finished goods
22,000
35,000
ABC Company’s accounting records for 2007 indicated the following costs had been incurred:
Direct materials purchased .
………………
$222,000
Depreciation, factory equipment .
………….
?
Direct labor .
…………………………..
?
Utilities.
………………………………
?
Sales commissions.
……………………….
69,000
Indirect materials.
………………………
31,000
Depreciation, office equipment .
…………..
14,000
Production supervisor’s salary .
…………..
74,000
Advertising.
…………………………….
52,000
Additional Information:
1.
60% of the utilities relate to the factory while 40% of the utilities relate to the
general office building
2.
Sales revenue for 2007 totaled $785,000; cost of goods manufactured was $438,000;
and net income amounted to $213,000
3.
There was no overhead variance (i.e., actual overhead = applied overhead)
Calculate the total cost of utilities incurred by ABC Company during 2007. Do not use decimals
in your answer.
Q10)
Jackson Company applies overhead to products using direct labor cost as the activity level.
During
2008, Jackson Company had the following estimated costs:
Direct materials .
……………….
$243,000
Direct labor .
…………………..
200,000
Advertising expense .
…………….
35,000
Rent on factory building .
………..
36,000
Depreciation .
……………….

60,000
Indirect materials .
……………..
20,000
Sales commissions .
………………
50,000

Show entire document

Leave a Comment