ACCT 505 Midterm New
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These are the automatically computed results of your exam. Grades for essay questions, and comments from your instructor, are in the “Details” section below.
Date Taken: 2015
Time Spent: 1 h , 56 min , 33 secs
Points Received: 144 / 150 (96%)
Question Type: # Of Questions: # Correct:
Multiple Choice 10 9
Short 1 N/A
Essay 3 N/A
Question 1. Question : (TCO A) Wages paid to an assembly line worker in a factory are a
Question 2. Question : (TCO A) The costs of staffing and operating the accounting department at Central Hospital would be considered by the Department of Surgery to be
Question 3. Question : (TCO A) Property taxes on a company’s factory building would be classified as a(n)
Question 4. Question : (TCO A) Within the relevant range, variable costs can be expected to
Question 5. Question : (TCO F) Which of the following statements is true?
- Overhead application may be made slowly as a job is worked on.
- 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.
Question 6. Question : (TCO F) Which of the following statements about the process-costing system is incorrect?
Question 7. Question : (TCO F) The weighted-average method of process costing differs from the FIFO method of process costing in that the weighted-average method
Question 8. Question : (TCO B) The contribution margin ratio always decreases when the
Question 9. Question : (TCO B) Which of the following would not affect the break-even point?
Question 10. Question : (TCO E) Under variable costing,
Grade Details – All Questions
Question 1. Question : (TCO A) The following data (in thousands of dollars) have been taken from the accounting records of Larklin Corporation for the just-completed year.
Purchases of raw materials $195
Direct labor $170
Manufacturing overhead $250
Administrative expenses $180
Selling expenses $140
Raw materials inventory, beginning $80
Raw materials inventory, ending $35
Work-in-process inventory, beginning $65
Work-in-process inventory, ending $30
Finished goods inventory, beginning $130
Finished goods inventory, ending $165
Prepare a Schedule of Cost of Goods Manufactured statement in the text box below.
Question 2. Question : (TCO F) The Indiana Company manufactures a product that goes through three processing departments. Information relating to activity in the first department during June is given below.
Units Materials Conversion
Work in process, June 1 70,000 65% 45%
Work in process, Jun 30 60,000 75% 65%
The department started 290,000 units into production during the month and transferred 300,000 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.
Question 3. Question : (TCO B) Drake Company’s income statement for the most recent year appears below.
Sales (45,000 units) $1,350,000
Less: variable expenses 750,000
Contribution margin 600,000
Less: fixed expenses 375,000
Net operating income $225,000
Calculate the unit contribution margin.
Calculate the the break-even point in dollars.
If the company desires a net operating income of $290,000, how many units must it sell?
Question 4. Question : (TCO E) Maffei Company, which has only one product, has provided the following data concerning its most recent month of operations.
Selling price $175
Units in beginning inventory 0
Units produced 9,500
Units sold 8,000
Units in ending Inventory 1,500
Variable costs per unit:
Direct materials $55
Direct labor $38
Variable manufacturing overhead $2
Variable selling and admin $10
Fixed manufacturing overhead $300,000
Fixed selling and admin $125,000
What is the unit product cost for the month under variable costing?
What is the unit product cost for the month under absorption costing?
Prepare an income statement for the month using the variable costing method.
Prepare an income statement for the month using the absorption costing method.