Question 1.1. (TCO A) (CPA-05783) Which of the following costs would decrease if production levels were increased within the relevant range? (Points : 10) Total fixed costs. Variable costs per unit. Total variable costs. Fixed costs per unit.
Question 2.2. (TCO A) (CPA-06992) Each of the following is a limitation of enterprise risk management (ERM), except: (Points : 10) ERM deals with risk, which relates to the future and is inherently uncertain. ERM operates at different levels with respect to different objectives. ERM can provide absolute assurance with respect to objective categories. ERM is as effective as the people responsible for its functioning.
Question 3.3. (TCO A) (CPA-03642) Kimbeth Manufacturing uses a process cost system to manufacture Dust Density Sensors for the mining industry. The following information pertains to operations for the month of May:
Units Beginning work-in-process inventory, May 1 16,000 Started in production during May 100,000 Completed production during May 92,000 Ending work-in-process inventory, May 31 24,000
The beginning inventory was 60 percent complete for materials and 20 percent complete for conversion costs. The ending inventory was 90 percent complete for materials and 40 percent complete for conversion costs.
Costs pertaining to the month of May are as follows: Beginning inventory costs are: materials, $54,560; direct labor $20,320; and factory overhead, $15,240. Costs incurred during May are: materials used, $468,000; direct labor, $182,880; and factory overhead, $391,160.
Using the FIFO method, the total cost of units in the ending work-in-process inventory at May 31 2
is: (Points : 10) $153,168 $154,800 $155,328 $156,960
Question 4.4. (TCO A) (CPA-03616) Madtack Company's beginning and ending inventories for the month of November Year 1 are:
November 1 November 30 Direct materials $ 67,000 $ 62,000 Work-in-process 145,000 171,000 Finished goods 85,000 78,000
Production data for the month of November follows. Direct labor $200,000 Actual factory overhead 132,000 Direct materials purchased 163,000 Transportation in 4,000 Purchase returns and allowances 2,000
Madtack uses one factory overhead control account and charges factory overhead to production at 70 percent of direct labor cost. The company does not formally recognize over/underapplied overhead until year-end.
Madtack Company's total manufacturing cost for November is: (Points : 10) $502,000 $503,000 $495,000 $510,000
Question 5.5. (TCO A) (CPA-06661) Boyle, Inc. makes two products, X and Y that require allocation of indirect manufacturing costs. The following data was compiled by the accountant before making any allocations:
Product X Product Y Quantity produced 10,000 20,000 Direct manufacturing labor hours 15,000 5,000 Setup hours 500 1,500
The total cost of setting up manufacturing processes and equipment is $400,000. The company uses a job-costing system with a single indirect cost rate. Under this system, allocated costs were $300,000 and $100,000 for X and Y, respectively. If an activity-based system is used, what would be the allocated costs for each product?
Question 6.6. (TCO A) (CPA-07013) According to COSO, the use of ongoing and separate evaluations to identify and address changes in internal control effectiveness can best be accomplished in which of the following stages of the monitoring-for-change continuum? (Points : 10) Control baseline. Change identification. Change management. Control revalidation/update.
Question 7.7. (TCO A) (CPA-0664) According to COSO, which of the following components of enterprise risk management addresses an entitiy's iintegrity and ethical values? (Points : 10) Information and communication. Internal environment. Risk assessment. Control activities.
Question 8.8. (TCO A) (CPA-03972) The use of activity-based costing normally results in: (Points : 10) Substantially greater unit costs for low-volume products than is reported by traditional product costing. Substantially lower unit costs for low-volume products than is reported by traditional product costing. Decreased set-up costs being charged to low-volume products. Equalizing set-up costs for all product lines.
Question 9.9. (TCO A) (CPS-05574) What is the cost of ending inventory given the following factors?
Beginning inventory $5,000 Total production costs 60,000 Cost of goods sold 55,000 Direct labor 40,000 (Points : 10) $5,000 $10,000 4
$45.000 $50,000
Question 10.10. (TCO A) (CPA-03940) The distribution of overhead costs is known as: (Points : 10) Cost allocation. Cost management. Burden distribution. Uncontrollable cost allocation.