I.TRUE $/$ FALSE QUESTIONS $(1-10)\_\_\_\_\_\_1.$ A job order cost accounting system does not provide for a separate record of the cost of each particular quantity of product that passes through the factory. $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_-2.$ A process cost accounting system provides for a separate record of the cost of each particular quantity of product that passes through the factory. $\_\_\_\_\_\_\_3.$ If the principal products of a manufacturing process are identical, a process cost system is more appropriate than a job order cost system. $\_\_\_\_\_\_\_4.$ A production supervisor's salary that does not vary with the number of units produced is an example of a fixed cost. $\_\_\_\_\_\_\_5.$ A budget procedure that provides for the maintenance at all times of a twelve$-$month projection into the future is called master budgeting. $\_\_\_\_\_\_\_6.$ A law firm would use a job order cost system to accumulate all of the costs associated with a particular client engagement, such as lawyer time, copying charges, filing fees, and overhead. $\_\_\_\_\_\_\_\_7.$ The range of activity over which changes in cost are of interest to management is called the relevant range. $\_\_\_\_\_\_\_\_8.$ Flexible budgeting requires all levels of management to start from zero and estimate sales, production, and other operating data as though operations were being started for the first time. $\_\_\_\_\_\_\_\_9.$The direct materials costs and direct labor costs incurred by a production department are referred to as conversion costs. $\_\_\_\_\_\_\_10.$Variable costs are costs that remain constant on a per$-$unit basis as the level of manufacturing activity changes. II$.$ MULTIPLE CHOICE QUESTIONS $(11-30)11.$ Which of the following is most associated with financial accounting? a$.$ Can have both objective and subjective information. b$.$ Can be prepared periodically, or as needed. c$.$ Prepared in accordance with GAAP d$.$ Can be prepared for the entity or segment. $12.$ If sales are $$425,000,$ variable costs are $65\%$ of sales, and operating income is $$50,000,$ what is the contribution margin ratio? a$.37\%$ b$.26\mathrm{.}8\%$ c$.35\%$ d$.63\%13.$ Department R had $5,000$ units in work in process that were $75\%$ completed as to labor and overhead at the beginning of the period, $30,000$ units of direct materials were added during the period, $32,000$ units were completed during the period, and $3,000$ units were $30\%$ completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. The first$-$in$,$ first$-$out method is used to cost inventories. The number of equivalent units of production for conversion costs for the period was: a$.32,450$ b$.29,450$ c$.31,950$ d$.29,15014.$ Wright Corporation began its operations on September $1$ of the current year. Budgeted sales for the first three months of business are $$240,000,$ $$300,000,$ and $$420,000,$ respectively, for September, October, and November. The company expects to sell $20\%$ of its merchandise for cash. Of sales on account, $60\%$ are expected to be collected in the month of the sale, $25\%$ in the month following the sale, and the remainder in the following month. The cash collections in September from accounts receivable are: a$.$ $$240,000$ b$.$ $$115,200$ c$.$ $$192,000$ d$.$ $$168,00015.$ Compute conversion costs given the following data: Direct Materials, $$352,700$; Direct Labor, $$196,300$; Factory Overhead, $$180,000.$ a$.$ $$549,000$ b$.$ $$726,600$ c$.$ $$376,300$ d$.$ $$530,30016.$ If fixed costs are $$250,000,$ the unit selling price is $$205,$ and the unit variable costs are $$75,$ what is the break$-$even sales $($units$)?$ a$.3,846$ units b$.1923$ units c$.10,000$ units d$.6,250$ units $17.$ The debits to Work in Process$--$Assembly Department for April, together with data concerning production, are as follows: April $1,$ work in process: Materials cost, $3,000$ units $ $7,500$ Conversion costs, $3,000$ units, $2/3$ completed $6,000$ Materials added during April, $10,000$ units $26,000$ Conversion costs during April $31,000$ Goods finished during April, $11,500$ units $---$ April $30$ work in process, $1,500$ units, $1/2$ completed $---$ All direct materials are placed in process at the beginning of the process and the first$-$in$,$ first$-$out method is used to cost inventories. The materials cost per equivalent unit for April is: a$.$ $$2\mathrm{.}60$ b$.$ $$2\mathrm{.}26$ c$.$ $$1\mathrm{.}30$ d$.$ $$5\mathrm{.}5018.$ The first budget customarily prepared as part of an entity's master budget is the: a$.$ production budget b$.$ cash budget c$.$ sales budget d$.$ direct materials purchases $19.$ All of the following employees hold line positions in Anthea Electric except: a$.$ vice president of production b$.$ vice president of finance c$.$ manager of the Valhalla Plant d$.$ vice president of sales $20.$ If fixed costs are $$500,000$ and the unit contribution margin is $$15,$ what amount of units must be sold in order to realize an operating income of $$200,000?$ a$.5,000$ b$.46,667$ c$.50,000$ d$.58,333$