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Category: Business and Industry
Date Submitted: 01/25/2016 03:53 PM
ACCT. 525 Quiz Question Review Fall 2015
Should we always assume total fixed costs remain unchanged?
The answer below is overstated, none. First pick
Gross margin = sales revenue – cost of goods sold
[The following information applies to the questions displayed below.]
Haskins Textile Co. manufactures a variety of fabrics. All materials are introduced at the beginning of production; conversion cost is incurred evenly through manufacturing. The Weaving Department had 1,000 units of work in process on April 1 that were 30% complete as to conversion costs. During April, 8,000 units were completed and on April 30, 3,500 units remained in production, 50% complete with respect to conversion costs.
rev: 10_27_2012
15.
Award: 1.00 point
The equivalent units of direct materials for April total:
8,000.
12,200.
11,500.
12,500.
11,800.
16.
Award: 1.00 point
The equivalent units of conversion for April total:
10,850.
9,750.
8,000.
10,050.
10,550.
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12.
Award: 1.00 point
Corruption, Inc. overstated the percentage of work completed with respect to conversion cost on the ending work-in-process inventory. What is the effect of this overstatement on conversion-cost equivalent units and physical units manufactured, respectively?
Overstated, understated.
Overstated, overstated.
Overstated, none.
None, none.
None, overstated.
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Hammett has a single production department, and uses a process-costing system. The balance in its Work-in-Process account on January 1 was $68,000. The account was charged with direct materials, direct labor, and manufacturing overhead of $450,000 throughout the year. If a review of the accounting records determined that $86,000 of goods were still in production at year-end, Hammett should make a journal entry on December 31 that includes:
a...