spacenab

Spacenab

Log in

 Password
"Post your contents, writings, articles, info-graphics, and more on spacenab."
sign up with facebook
Create a new post
DonDominguez

ACCT 505 Week 4 Midterm Examination

DonDominguez

ACCT 505 Week 4 Midterm Examination

To Download tutorial Copy and Paste below Link into your Browser

https://www.essayblue.com/downloads/acct-505-week-4-midterm-examination/

 

for any inquiry email us at  ( essayblue@gmail.com )

 

ACCT 505 Week 4 Midterm Examination

 

<table width="100%"> <tbody><tr> <td> <table> <tbody><tr> <td>

1. (TCO A)  Direct material cost is a part of (Points : 6)

</td> </tr> </tbody></table>

Conversion Cost NO…. Prime Cost NO.
Conversion Cost YES…. Prime Cost NO.
Conversion Cost YES…. Prime Cost YES.
Conversion Cost NO…. Prime Cost YES.

</td> </tr> </tbody></table>

 

<table width="100%"> <tbody><tr> <td> <table> <tbody><tr> <td>

Question 2.2. (TCO A)  Total fixed costs (Points : 6)

</td> </tr> </tbody></table>

will increase with increases in activity.
will decrease with increases in activity.
are not affected by activity.
should be ignored in making decisions because they can never change.

</td> </tr> </tbody></table>

 

<table width="100%"> <tbody><tr> <td> <table> <tbody><tr> <td>

Question 3.3. (TCO A) Property taxes on a company’s factory building would be classified as a(n) (Points : 6)

</td> </tr> </tbody></table>

variable cost.
opportunity cost.
period cost.
product cost.

</td> </tr> </tbody></table>

 

<table width="100%"> <tbody><tr> <td> <table> <tbody><tr> <td>

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)

</td> </tr> </tbody></table>

Fixed costs per unit decrease and variable costs per unit do not change.
Fixed costs per unit increase and variable costs per unit do not change.
Fixed costs per unit do not change and variable costs per unit do not change.
Fixed costs per unit do not change and variable costs per unit increase.

</td> </tr> </tbody></table>

 

<table width="100%"> <tbody><tr> <td> <table> <tbody><tr> <td>

Question 5.5. (TCO B) Which of the following statements is true?
I. Overhead application may be made slowly as a job is worked on.
II. Overhead application may be made in a single application at the time of completion of the job.
III. Overhead application should be made to any job not completed at year end in order to properly value the work in process inventory. (Points : 6)

</td> </tr> </tbody></table>

Only statement I is true.
Only statement II is true.
Both statements I and II are true.
Statements I, II, and III are true.

</td> </tr> </tbody></table>

 

<table width="100%"> <tbody><tr> <td> <table> <tbody><tr> <td>

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

</td> </tr> </tbody></table>

is homogeneous.
passes from one manufacturing department to the next before being completed.
can be custom manufactured.
has a unit cost that is easy to calculate by dividing total production costs by the units produced.

</td> </tr> </tbody></table>

 

<table width="100%"> <tbody><tr> <td> <table> <tbody><tr> <td>

Question 7.7. (TCO F)  Equivalent units for a process costing system using the FIFO method would be equal to (Points : 6)

</td> </tr> </tbody></table>

units completed during the period, plus equivalent units in the ending work-in-process inventory.
units started and completed during the period, plus equivalent units in the ending work-in-process inventory.
units completed during the period and transferred out.
units started and completed during the period, plus equivalent units in the ending work-in-process inventory, plus work needed to complete units in the beginning work-in-process inventory.

</td> </tr> </tbody></table>

 

<table width="100%"> <tbody><tr> <td> <table> <tbody><tr> <td>

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

</td> </tr> </tbody></table>

sales – expenses.
sales – variable costs.
sales – cost of goods sold.
sales – fixed costs.

</td> </tr> </tbody></table>

 

<table width="100%"> <tbody><tr> <td> <table> <tbody><tr> <td>

Question 9.9. (TCO C)  Which of the following would not affect the break-even point? (Points : 6)

</td> </tr> </tbody></table>

Variable expense per unit
Number of units sold
Total fixed expenses
Selling price per unit

</td> </tr> </tbody></table>

 

<table width="100%"> <tbody><tr> <td> <table> <tbody><tr> <td>

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

</td> </tr> </tbody></table>

inventory costs will be lower than under absorption costing.
inventory costs will be higher than under absorption costing.
net operating income will always be lower than under absorption costing.
net operating income will always be higher than under absorption costing.

</td> </tr> </tbody></table>

 

  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.
<table> <tbody><tr> <td width="147">

Sales

</td> <td width="24">

$950

</td> </tr> <tr> <td width="147">

Purchases of raw materials

</td> <td width="24">

$225

</td> </tr> <tr> <td width="147">

Direct labor

</td> <td width="24">

$250

</td> </tr> <tr> <td width="147">

Manufacturing overhead

</td> <td width="24">

$295

</td> </tr> <tr> <td width="147">

Administrative expenses

</td> <td width="24">

$150

</td> </tr> <tr> <td width="147">

Selling expenses

</td> <td width="24">

$140

</td> </tr> <tr> <td width="147">

Raw materials inventory, beginning

</td> <td width="24">

$30

</td> </tr> <tr> <td width="147">

Raw materials inventory, ending

</td> <td width="24">

$45

</td> </tr> <tr> <td width="147">

Work-in-process inventory, beginning

</td> <td width="24">

$20

</td> </tr> <tr> <td width="147">

Work-in-process inventory, ending

</td> <td width="24">

$55

</td> </tr> <tr> <td width="147">

Finished goods inventory, beginning

</td> <td width="24">

$100

</td> </tr> <tr> <td width="147">

Finished goods inventory, ending

</td> <td width="24">

$135

</td> </tr> </tbody></table>

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

 

Question 2.2. (TCO B) The Nebraska Company manufactures a product that goes through three processing departments. Information relating to activity in the first department during June is given below.

<table> <tbody><tr> <td width="147"></td> <td width="56"></td> <td width="134">

Percentage Completed

</td> </tr> <tr> <td width="147"></td> <td width="56">

Units

</td> <td width="62">

Materials

</td> <td width="69">

Conversion

</td> <td width="2"></td> </tr> <tr> <td width="147">

Work in process, June 1

</td> <td width="56">

140,000

</td> <td width="62">

65%

</td> <td width="69">

45%

</td> <td width="2"></td> </tr> <tr> <td width="147">

Work in process, Jun 30

</td> <td width="56">

120,000

</td> <td width="62">

75%

</td> <td width="69">

65%

</td> <td width="2"></td> </tr> </tbody></table>

The department started 580,000 units into production during the month and transferred 600,000 completed units to the next department.

Required: Compute the equivalent units of production for the first department for June, assuming that the company uses the weighted-average method of accounting for units and costs.(Points : 20)

 

Question 3.3. (TCO C) A tile manufacturer has supplied the following data.

<table> <tbody><tr> <td width="314">

Boxes of tile produced and sold

</td> <td width="112">

625,000

</td> </tr> <tr> <td width="314">

Sales revenue

</td> <td width="112">

$2,975,000

</td> </tr> <tr> <td width="314">

Variable manufacturing expense

</td> <td width="112">

$1,720,000

</td> </tr> <tr> <td width="314">

Fixed manufacturing expense

</td> <td width="112">

$790,000

</td> </tr> <tr> <td width="314">

Variable selling and admin expense

</td> <td width="112">

$152,000

</td> </tr> <tr> <td width="314">

Fixed selling and admin expense

</td> <td width="112">

$133,000

</td> </tr> <tr> <td width="314">

Net operating income

</td> <td width="112">

$180,000

</td> </tr> </tbody></table>

 
Required:
Calculate the company’s unit contribution margin.
Calculate the company’s contribution margin ratio.
If the company increases its unit sales volume by 5% without increasing its fixed expenses, what would the company’s net operating income be? (Points : 25)

 

Question 4.4. (TCO D) The Hampton Company produces and sells a single product. The following data refer to the year just completed.

<table> <tbody><tr> <td width="173">

Selling price

</td> <td width="62">

$450

</td> </tr> <tr> <td width="173"></td> <td width="62"></td> </tr> <tr> <td width="173">

Units in beginning inventory

</td> <td width="62">

0

</td> </tr> <tr> <td width="173">

Units produced

</td> <td width="62">

25,000

</td> </tr> <tr> <td width="173">

Units sold

</td> <td width="62">

22,000

</td> </tr> <tr> <td width="173"></td> <td width="62"></td> </tr> <tr> <td width="173">

Variable costs per unit:

</td> <td width="62"></td> </tr> <tr> <td width="173">

Direct materials

</td> <td width="62">

$150

</td> </tr> <tr> <td width="173">

Direct labor

</td> <td width="62">

$75

</td> </tr> <tr> <td width="173">

Variable manufacturing overhead

</td> <td width="62">

$25

</td> </tr> <tr> <td width="173">

Variable selling and admin

</td> <td width="62">

$15

</td> </tr> <tr> <td width="173"></td> <td width="62"></td> </tr> <tr> <td width="173">

Fixed costs:

</td> <td width="62"></td> </tr> <tr> <td width="173">

Fixed manufacturing overhead

</td> <td width="62">

$275,000

</td> </tr> <tr> <td width="173">

Fixed selling and admin

</td> <td width="62">

$200,000

</td> </tr> </tbody></table>

 
Required:
Compute the cost of a single unit of product under both the absorption costing and variable costing approaches.
Prepare an income statement for the year using absorption costing.
Prepare an income statement for the year using variable costing. (Points : 30)

 

Views(6) Opinions(0) 03/14/2017 10:15:50 Report abuse
Copyright © 2014 spacenab.com . All the right reserved.