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WorksheetsAE22 - Quiz2A
Total questions: 12
Worksheet time: 11mins
A manufacturing company reports Cost of Goods Manufactured as
a component of raw materials inventory on the balance sheet
a component in the calculation of cost of goods sold
an administrative expense on the income statement
as a deduction from the Net Sales to get the Gross Margin
Calculate the cost of sales from the following:
Total Manufacturing Costs - P200,000
Office & Administrative Costs - P100,000
WIP Beg - P10,000; WIP End - P20,000
Finished Goods Inventory, End - P30,000; Beg. P0
Selling Expenses - P10,000
P200,000
P170,000
P160,000
P190,000
The salaries of a time keeper in the factory would be classified as:
administrative expense
conversion cost
prime cost
direct labor
ABC Company's predetermined overhead rate is 120% of direct labor cost. During the month, ABC incurred P315,000 of factory labor costs, of which P15,000 was indirect labor. Actual overhead incurred was P250,000. The amount of overhead debited to Work in Process Inventory should be:
P315,000
P250,000
P300,000
P360,000
Break Even Point Analysis is carried out to find where the following are equal
Overhead Cost and Fixed Cost
Holding Cost and Ordering Cost
Sales Volume Value and Overall Costs
Sales Volume Value and Manufacturing Costs
Break Even Point represents that point of sales where there is
Profit
Loss
No Profit, No Loss
The initial cost of making and selling a product is P200,000 and the variable cost is P40 per unit. If the selling price is P80 per unit what would be the break even quantity?
2,500 Units
3,500 Units
5,000 Units
7,000 Units
Which of the following is correct at a Break Even Point?
Total Cost is more than the Sales Revenue
Total Cost is equal to Sales Revenue
Fixed cost is equal to variable cost
Total Cost is less than the Sales Revenue
The difference between actual sales and break even sales is known as
Contribution margin
Price cost margin
Profit
Margin of Safety
Which statements identify a disadvantage of break-even analysis?
1. It does not show the effect of changes in output on the break-even point.
2. It is assumed that all costs can be split between fixed and variable.
3. It makes it difficult to decide the profitability of a product at different levels of activity.
1 & 2
2 &3
1 only
2 only
3 only
A product has a variable cost of P31.32 per unit. Total fixed costs are P93,600. When production is 13000 units the margin of safety is 5000 units. What is the selling price per unit?
P50.04
P43.02
P38.52
P36.52
At break even point of 4,000 units, total variable costs were P4,000 and fixed costs were P2.000. What will the 4,100 units sold contribute to profit?
P50
P100
P150
P0
