BF180 Quiz 1 Review

A Chinese restaurant is an example of a _____

Beginning work-in-process inventory + Units started = Unit transferred out + Ending wok-in-process inventory is the _____ Equation

Advertising, sales commissions, and shipping costs refer to ____ Costs

_____ inventory method whereby the first goods received are the first ones charged out when sold or transferred.

_____ cost Any cost that cannot be directly related to a cost object.

A _____ Account in the general ledger that summarizes a set of subsidiary ledger accounts.

A company’s fixed costs are $60,000 and variable costs per unit are $4. The sales price is $10. The company sold 12,000 units. Which of the following is the company’s margin of safety percentage? 

• 20%

• 16.67%

• 30%

• 10%

Abraci Co. uses process costing. It reported the following accounting information: work in process on January 1, 20X1 at 2,000 units, all materials, 40% converted; processed and transferred out at 20,000 units; work in process on January 31, 20X1 at 4,000 units, all materials, 60% converted. Which of the following are Abraci Co.’s equivalent units of production if the company uses FIFO method? 

• 5000 units for materials and 10,000 units for conversion costs

• 24,000 units for materials and 22,400 units for conversion costs

• 12,000 units for materials and 20,000 units for conversion costs

• 0 units for materials and 0 units for conversion costs.

If the actual overhead costs incurred are in excess of the applied overhead costs, the difference is called what? 

• Data

• Overapplied Overhead

• Breakeven Point

• Underapplied Overhead

The level of production at which the costs of production equal the revenues for a product and, hence, the profits equal to zero is called what? 

• Surplus

• Deficit

• Breakeven Point

• Equal