Acct 525

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...