# Devry ACCT 244 Week 3 and 5 Homework Latest

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## Devry ACCT 244 Week 3 and 5 Homework Latest

(TCO 5) Mason Industries manufactures 20,000 components per year. The manufacturing cost of the cowmonents was determined as follows:

Direct materials \$80,000

Direct labor \$120,000

An outside supplier has offered to sell Mason the component for \$13. If Mason purchases the component from the outside supplier, fixed costs would be reduced by \$10,000. Should Mason accept the offer?

Yes, because the differential costs decrease by \$10,000.

Yes, because the differential costs decrease by \$5,000.

No, because the differential costs increase by \$10,000.

No, because the differential costs increase by \$5,000.

Question 2. Question : (TCO 5) The following information relates to a product produced by Henry Company:

Direct materials \$13

Direct labor 10

Unit cost \$42

Fixed selling costs are \$1,000,000 per year. Variable selling costs of \$3 per unit sold are added to cover the transportation cost.Although production capacity is 500,000 units per year, Henry expects to produce only 400,000 units next year. The product normally sells for \$50 each. A customer has offered to buy 50,000 units for \$38 each. The customer will pay the transportation charge on the units purchased. If Henry accepts the special order, the effect on income would be a:

\$750,000 increase.

\$350,000 increase.

\$200,000 increase.

\$100,000 increase.

Question 3. Question : (TCO 5) The operations of Click Corporation are divided into the North Division and the South Division.Projections for the next year are as follows:

North Division South Division Total

Sales \$720,000 340,000 \$1,060,000

Variable costs 215,000 158,000 373,000

Contribution margin \$505,000 \$182,000 \$687,000

Direct fixed costs 173,000 146,000 319,000

Segment margin \$332,000 \$36,000 \$368,000

Allocated common costs 90,000 68,000 158,000

Operating income (loss) \$242,000 \$(32,000) \$210,000

If the South Division was dropped, the operating income for Click Corporation, as a whole, would be:

\$264,000.

\$174,000.

\$242,000.

\$210,000.

Question 4. Question : (TCO 3) Mount Company incurred a total cost of \$8,600 to produce 400 units of pulp. Each unit of pulp required five direct labor hours to complete. What is the total fixed cost if the variable cost was \$1.50 per direct labor hour?

\$1,700

\$3,000

\$5,600

\$8,000

Question 5. Question : (TCO 3) The controller of Joy Co has requested a quick estimate of the manufacturing supplies needed for the Morton Plant for the month of July, when production is expected to be 470,000 units to meet the ending inventory requirements and sales of 475,000 units. Joy Co’s budget analyst has the following actual data for the last three months.

Using the high-low method to develop a cost estimating equation, the estimate of the needed manufacturing supplies for July would be:

\$681,500.

\$688,750.

\$749,180.

\$752,060.

Question 1. Question : (TCO 2) Mark Corporation estimates its manufacturing overhead to be \$110,000 and its direct labor costs to be \$220,000 for Year 1. The actual direct labor costs for the year include:

Job 301 \$60,000

Job 302 82,000

Job 303 98,000

The actual manufacturing overhead was \$121,000. Manufacturing overhead is applied to jobs on the basis of direct labor costs by using predetermined rates. What was the over- or underapplied manufacturing overhead for Year 1?

\$11,000 overapplied

\$11,000 underapplied

\$1,000 overapplied

\$1,000 underapplied

Question 2. Question : (TCO 2) The journal entry to record the actual manufacturing overhead costs for indirect material is:

a

b

c

d

e

Question 3. Question : (TCO 2) Cedar Company estimates its manufacturing overhead to be \$700,000 and its direct labor costs to be \$560,000 for Year 2. Cedar worked on the following three jobs for the year:

Job Status Direct Labor Costs

Job 2-1 Completed and sold \$195,000

Job 2-2 Completed by not sold 325,000

Job 2-3 In progress 130,000

Actual manufacturing overhead for Year 2 was \$822,000. Manufacturing overhead is applied on the basis of direct labor costs. How much of the underapplied overhead should be allocated to finished goods?

\$2,850

\$1,900

\$4,750

\$9,500

Question 4. Question : (TCO 2) In order to compute equivalent units of production using the FIFO method of process costing, work for the period must be broken down to units:

completed during the period and units in ending inventory.

started during the period and units transferred out during the period.

completed from beginning inventory, started and completed during the month, and units in ending inventory.

processed during the period and units completed during the period.

Question 5. Question : (TCO 2) The Finishing Department had 5,000 incomplete units in its beginning Work-in-Process Inventory, which were 100% complete as to materials and 30% complete as to conversion costs. 15,000 units were received from the previous department. The ending Work-in-Process Inventory consisted of 2,000 units, which were 50% complete as to materials and 30% complete as to conversion costs. The Finishing Department uses first-in, first-out (FIFO) process costing. What are the equivalent units of production for the conversion costs during the period?

14,500

15,100

16,500

17,100

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Devry ACCT 244 Week 3 and 5 Homework Latest

Devry ACCT 244 Week 3 and 5 Homework Latest