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On January 15, $168,000 of direct materials were requisitioned for production of

ID: 2550921 • Letter: O

Question

On January 15, $168,000 of direct materials were requisitioned for production of Job 350. From the following, select the correct journal entry to record the transaction on the day the materials were requisitioned by the production department.

Question 12 options:

Jan 15 Work in Process 168,000

Factory Overhead 168,000

Jan 15 Work in Process 168,000

Cash 168,000

Jan 15 Materials 168,000

Work in Process 168,000

Jan 15 Work in Process 168,000

Materials 168,000

ABC Company sells 25,000 units at $25 per unit. Variable costs are $15 per unit, and fixed costs are $75,000. The contribution margin ratio and the unit contribution margin are:

40% and $10 per unit

40% and $15 per unit

60% and $15 per unit

60% and $10 per unit

Bobby Co. sells two products, X and Y. Last year, Bobby sold 18,000 units of X's and 12,000 units of Y's. The unit selling price, variable cost per unit, and contribution margin per unit for the company’s two products are provided below.

Product                selling price            variable cost per unit                          contribution margin

X                             180                           100                                                        80

Y                               100                          60                                                          40

Assuming that last year’s fixed costs totaled $160,000. What was Bobby Co's break-even point in units of enterprise product "E"?

2,000 units

2,857 units

2,500 units

6,000 units

ABC Company sells 25,000 units at $25 per unit. Variable costs are $15 per unit, and fixed costs are $75,000. The contribution margin ratio and the unit contribution margin are:

40% and $10 per unit

40% and $15 per unit

60% and $15 per unit

60% and $10 per unit

A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $675,000 and direct labor hours would be 45,000. Actual factory overhead costs incurred were $725,000, and actual direct labor hours were 48,000. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year?

$5,000 underapplied

$45,000 overapplied

$45,000 underapplied

$5,000 overpplied

Jan 15 Work in Process 168,000

Factory Overhead 168,000

Jan 15 Work in Process 168,000

Cash 168,000

Jan 15 Materials 168,000

Work in Process 168,000

Jan 15 Work in Process 168,000

Materials 168,000

ABC Company sells 25,000 units at $25 per unit. Variable costs are $15 per unit, and fixed costs are $75,000. The contribution margin ratio and the unit contribution margin are:

40% and $10 per unit

40% and $15 per unit

60% and $15 per unit

60% and $10 per unit

Bobby Co. sells two products, X and Y. Last year, Bobby sold 18,000 units of X's and 12,000 units of Y's. The unit selling price, variable cost per unit, and contribution margin per unit for the company’s two products are provided below.

Product                selling price            variable cost per unit                          contribution margin

X                             180                           100                                                        80

Y                               100                          60                                                          40

Assuming that last year’s fixed costs totaled $160,000. What was Bobby Co's break-even point in units of enterprise product "E"?

2,000 units

2,857 units

2,500 units

6,000 units

ABC Company sells 25,000 units at $25 per unit. Variable costs are $15 per unit, and fixed costs are $75,000. The contribution margin ratio and the unit contribution margin are:

40% and $10 per unit

40% and $15 per unit

60% and $15 per unit

60% and $10 per unit

A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $675,000 and direct labor hours would be 45,000. Actual factory overhead costs incurred were $725,000, and actual direct labor hours were 48,000. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year?

$5,000 underapplied

$45,000 overapplied

$45,000 underapplied

$5,000 overpplied

Explanation / Answer

a) Journal entry :

so answer is d)

2) Contribution margin per unit = 25-15 = 10 per unit

Contribution margin ratio = 10*100/25 = 40%

so answer is a) 40% and $10 per unit

3) Weighted average contribution margin per unit = (80*60%+40*40%) = 64 per unit

Break even point units = 160000/64 = 2500 units

so answer is c) 2500 units

4) Contribution margin per unit = 25-15 = 10 per unit

Contribution margin ratio = 10*100/25 = 40%

so answer is a) 40% and $10 per unit

5) Predetermine overhead rate = 675000/45000 = 15 per hour

Applied overhead = 15*48000 = 720000

Actual overhad = 7250000

Under applied overhead = 5000

so answer is a) $5,000 underapplied

Date accounts & explanation debit credit Jan 15 Work in process 168000      Material 168000