Question : 86.Selwyn Fabrics sold 60,000 yards of upholstery fabric for $22 : 1302712

86.Selwyn Fabrics sold 60,000 yards of upholstery fabric for $22 per yard. The company’s unit product cost using process costing is $5 per yard and the company has fixed costs of $86,000 per month. The company predicts that a $2 decrease in the selling price will generate a 12% increase in sales during the next period. If the company lowers the price, which of the following will occur in the next period?

A.Net income will increase by $24,000.

B.Net income will decrease by $12,000.

C.Total fixed costs will increase by $10,320.

D.The variable costs per unit will decline by $0.60 per yard.

87.The end of the month report for a process costing system which facilitates the determination of the ending Work in Process inventory to be reported on the balance sheet is called a(n)

A.inventory control report.

B.production cost report.

C.equivalent unit report.

D.cost summary report.

88.Which of the following will not appear on the production cost report?

A.Number of units in beginning Work in Process inventory

B.Cost of beginning Raw Materials inventory

C.Cost of ending Work in Process inventory

D.Cost of goods sold

89.A production cost report

A.is the same as a job-order cost sheet.

B.summarizes the costs in all of the Work in Process accounts for a company.

C.provides a reconciliation of units and a reconciliation of costs, as well as the details of the cost per equivalent unit calculation.

D.must be completed before a department starts production for the month.

90.The number of units to account for is calculated as:

A.the number of units in beginning inventory plus the number of units started this period.

B.the number of units in beginning inventory plus the number of units in ending inventory.

C.the number of units started during the period.

D.the number of equivalent units produced during the period.

91.Assuming no units are lost, the number of “units accounted for” should be the same as

A.the number of units “to account for”.

B.the sum of the number of units in ending Work in Process inventory and the number of units completed and transferred out of the department.

C.the sum of the number of units in beginning inventory and the number of units started this period.

D.All of these answer choices are correct.

92.For each period, the total cost that must be accounted for is the sum of

A.the costs in the beginning and ending Work in Process Inventory accounts.

B.all costs that were incurred during this period.

C.costs in the beginning Work in Process Inventory and costs incurred during the period.

D.costs transferred out of the department and costs in the beginning Work in Process Inventory.

93.The first step in preparing the production cost report is to

A.account for the number of physical units.

B.calculate the cost per equivalent unit.

C.assign costs to the items completed.

D.determine the cost per equivalent unit.

94.DynaVenture Enterprises uses a process costing system. During May, the Processing Department transferred out 43,000 units. The Work in Process Inventory at May 31 in the Processing Department consisted of 3,200 equivalent units of material and 960 equivalent units of labor and overhead. The cost per equivalent unit was $1.50 for materials and $3.20 for labor and overhead. Which of the following amounts will you find reported as “Total Cost to Account for” in the production cost report for May?

A.$209,972

B.$202,100

C.$217,140

D.$206,612

95.WallerCo’s Assembly Department began the period with 12,000 units partially complete. An additional 275,000 units were transferred into this department during the period to be assembled (the final step in the manufacturing process). At the end of the period, 15,000 units remained in the Assembly Department. The company utilizes a process costing system. How many units were transferred to Finished Goods Inventory during the period?

A.287,000 units

B.290,000 units

C.272,000 units

D.278,000 units