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(TCO A) The variable portion of advertising costs is a (Points : 6)

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Question 1.1. (TCO A) The variable portion of advertising costs is a (Points : 6)

Question 2.2. (TCO A)  A cost incurred in the past that is not relevant to any current decision is classified as a(n) (Points : 6)

Question 3.3. (TCO A) Depreciation of office buildings and office equipment is also known as (Points : 6)

Question 4.4. (TCO C) When the activity level is expected to increase within the relevant range, what effects would be anticipated with respect to each of the following? (Points : 6)

Question 5.5. (TCO B) When manufacturing overhead is applied to production, it is added to (Points : 6)

Question 6.6. (TCO B) Under a job-order costing system, the product being manufactured (Points : 6)

Question 7.7. (TCO B) The FIFO method only provides a major advantage over the weighted-average method in that (Points : 6)

Question 8.8. (TCO C) The contribution margin equals (Points : 6)

Question 9.9. (TCO C) To obtain the break-even point in terms of dollar sales, total fixed expenses are divided by which of the following? (Points : 6)

Question 10.10. (TCO D) Under variable costing, (Points : 6)

Page 2

Question 1.1. (TCO A) The following data (in thousands of dollars) have been taken from the accounting records of Larop Corporation for the just-completed year.

Sales

$950

Purchases of raw materials

$225

Direct labor

$250

Manufacturing overhead

$295

Administrative expenses

$150

Selling expenses

$140

Raw materials inventory, beginning

$30

Raw materials inventory, ending

$45

Work-in-process inventory, beginning

$20

Work-in-process inventory, ending

$55

Finished goods inventory, beginning

$100

Finished goods inventory, ending

$135


Prepare a Schedule of Cost of Goods Manufactured statement in the text box below. (Points : 15)

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