1. Oscar Corporation uses a process cost accounting system. Given


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1. Oscar Corporation uses a process cost accounting system. Given the following data, compute the number of units transferred out during the current period. Beginning Work in process 10,000 units (½ complete) Ending Work in Process 12,500 units (⅓ complete) Started into Production 75,000 units Question options: 62,500. 72,500. 75,000. 2. Pilgrim Company applies overhead on the basis of machine hours. Given the following data, compute overhead applied and the under- or overapplication of overhead for the period: Estimated annual overhead cost $1,200,000 Actual annual overhead cost $1,150,000 Estimated machine hours 300,000 Actual machine hours 280,000 Question options: $1,150,000 applied and neither under- nor overapplied. $1,120,000 applied and $30,000 underapplied. $1,200,000 applied and $30,000 overapplied. 3. Kemp Company incurs the following costs in producing 50,000 units of product: Direct materials $200,000 Direct labor 100,000 Variable manufacturing overhead 200,000 Fixed manufacturing overhead 600,000 An outside supplier has offered to supply the 50,000 units at $14.00 each. All of Kemp’s related variable costs, but only $400,000 of the fixed costs would be eliminated if the offer is accepted. Acceptance will result in a: Question options: savings of $400,000. loss of $400,000. savings of $200,000. 4. A flexible budget: Question options: is also called a static budget. can be considered a series of related static budgets. can be prepared for sales or production budgets, but not for an operating expense budget. 5. A Discount on Bonds Payable account: Question options: is an adjunct account to Bonds Payable. will cause interest expense to be less than cash interest payable. is a contra account to Bonds Payable. reptidge
posted a question · Feb 27, 2016 at 1:47am

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