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ACC2200 - ACF2200 - Introduction to management accounting - S2 2026

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Sophmore Industries uses a weighted-average process-costing system. All materials are added at the beginning of the process while conversion costs are incurred evenly throughout production. The company finished 40,000 units during the period and had 15,000 units in progress at year-end, the latter at the 40% stage of completion. Total material costs amounted to $220,000; conversion costs were $414,000. The cost of the ending work in process is:
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A department using the weighted-average method had 7,000 units in beginning WIP, which were 40% complete for conversion. 

  • During the month, 45,000 additional units were started. 
  • At month-end, 10,000 units remained in WIP. 
  • Total conversion equivalent units for the month were 45,000. 
 What was the percentage completion of ending WIP for conversion?

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A department using the weighted-average method had: 

  • Beginning WIP: 6,000 units, 30% complete for conversion 
  • Units started: 34,000 
  • Units completed and transferred: 32,000 
  • Ending WIP: 8,000 units, 50% complete for conversion 
What are the equivalent units for conversion?

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Which of the following statements regarding work in process is not correct?
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A company estimated annual manufacturing overhead of $900,000 and 50,000 machine hours. 

Actual results were: 

  • Machine hours: 48,000 
  • Indirect materials: $120,000 
  • Indirect labour: $210,000 
  • Factory depreciation: $280,000 
  • Factory utilities: $190,000 
  • Factory insurance: $75,000 
Which statement is correct?

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Job 105 has accumulated the following costs: 

  • Direct materials: $32,000 
  • Direct labour: $24,000 
  • Applied manufacturing overhead: $36,000  

The job was completed during June but had not been sold by the end of June.

Which journal entry should be recorded when the job is completed?

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At year-end, a company's Manufacturing Overhead account has a credit balance of $18,000 before closing. Which statement must be true?
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Barkoff Enterprises, which uses the high-low method to analyze cost behavior, has determined that machine hours best explain the company's utilities cost. The company's relevant range of activity varies from a low of 600 machine hours to a high of 1,100 machine hours, with the following data being available for the first six months of the year: MONTHUTILITIESMACHINE HOURSJANUARY$ 9,600800FEBRUARY9,260720MARCH9,850810APRIL10,260920MAY10,732950JUNE10,050900 Using the high-low method, the utilities cost for Barkoff associated with 980 machine hours would be:
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Total costs are $140 000 when 10 000 units are made. Of this amount, variable costs are $4 per unit. What are the total costs when 8 000 units are produced?
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A company's packaging cost is strictly variable within the relevant range. At 20,000 units, total packaging cost is $50,000. Production falls by 20% next month.

Which statement is correct?

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