Sunteți pe pagina 1din 1

Q1. East Bay Fisheries Inc. processes king salmon for various distributors.

Two departments are involved

processing and packaging. Data relating to tons of King Salmon processed in the processing
department during June 2016 are provided below:
Percent Completed
Materials Conversion
Work-in-process inventory June 1 1,500 90% 80%
Work-in-process inventory June 30 2,800 60% 40%
Started processing during June 7,800
Total equivalent units for materials under the weighted-average method are calculated to be: this level
of activity is within the relevant range.
A. 6,980 equivalent units.
B. 6,830 equivalent units.
C. 8,180 equivalent units.
D. 7,140 equivalent units.
Q2. Walsh Company expects sales of Product W to be 60,000 units in April, 75,000 units in May and
70,000 units in June. The company desires that the inventory on hand at the end of each month be
equal to 40% of the next month's expected unit sales. Due to excessive production during March, on
March 31 there were 25,000 units of Product W in the ending inventory. Given this information, Walsh
Company's production of Product W for the month of April should be:
A. 60,000 units
B. 65,000 units
C. 75,000 units
D. 66,000 units.
Q3. The contribution margin ratio is 25% for Grain Company and the break-even point in sales is
$200,000. To obtain a target net operating income of $60,000, sales would have to be:
A. $260,000
B. $440,000
C. $280,000
D. $240,000.
Q4. Capello Corporation bases its predetermined overhead rate on the estimated labor-hours for the
upcoming year. At the beginning of the most recently completed year, the company estimated the
labor-hours for the upcoming year at 52,000 labor-hours. The estimated variable manufacturing
overhead was $2.78 per labor-hour and the estimated total fixed manufacturing overhead was
$1,192,360. The actual labor-hours for the year turned out to be 52,600 labor-hours. The
predetermined overhead rate for the recently completed year was closest to:
A. $2.78
B. $25.45
C. $25.71
D. $22.93

End of Quiz