Save Time & improve Grades
- Questions Asked
- Experts
- Total Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!
ACCT505/ACCT 505 WEEK 4 MIDTERM
ACCT 505
WEEK 4
1. Question : (TCO A) Wages paid to an assembly line worker in a factory are a
Student Answer: Prime Cost YES.....Conversion Cost NO.
Prime Cost YES.....Conversion Cost YES.
Prime Cost NO....Conversion Cost NO.
Prime Cost NO.....Conversion Cost YES.
Instructor Explanation: Chapter 2
Points Received: 6 of 6
Comments:
2. Question : (TCO A) A cost incurred in the past that is not relevant to any current decision is classified as a(n)
Student Answer: period cost.
incremental cost.
opportunity cost.
None of the above
Instructor Explanation: Chapter 2
Points Received: 6 of 6
Comments:
3. Question : (TCO A) Property taxes on a company's factory building would be classified as a(n)
Student Answer: sunk cost.
opportunity cost.
period cost.
variable cost.
manufacturing cost.
Instructor Explanation: Chapter 2
Points Received: 6 of 6
Comments:
4. Question : (TCO A) Within the relevant range, variable costs can be expected to
Student Answer: vary in total in direct proportion to changes in the activity level.
remain constant in total as the activity level changes.
increase on a per-unit basis as the activity level increases.
increase on a per-unit basis as the activity level decreases.
None of the above
Instructor Explanation: Chapter 5
Points Received: 6 of 6
Comments:
5. Question : (TCO F) 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.
Student Answer: Only statement I is true.
Only statement II is true.
Both statements I and II are true.
Statements I, II, and III are all true.
Instructor Explanation: Chapter 3
Points Received: 6 of 6
Comments:
6. Question : (TCO F) Under a job-order costing system, the product being manufactured
Student Answer: 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.
Instructor Explanation: Chapter 3
Points Received: 6 of 6
Comments:
7. Question : (TCO F) The FIFO method only provides a major advantage over the weighted-average method in that
Student Answer: the calculation of equivalent units is less complex under the FIFO method.
the FIFO method treats units in the beginning inventory as if they were started and completed during the current period.
the FIFO method provides measurements of work done during the current period.
the weighted-average method ignores units in the beginning and ending work-in-process inventories.
Instructor Explanation: Chapter 4
Points Received: 6 of 6
Comments:
8. Question : (TCO B) The contribution margin equals
Student Answer: sales - expenses.
sales - cost of goods sold.
sales - variable costs.
sales - fixed costs.
Instructor Explanation: Chapter 6
Points Received: 6 of 6
Comments:
9. Question : (TCO B) To obtain the break-even point in terms of dollar sales, total fixed expenses are divided by which of the following?
Student Answer: Variable expense per unit
Variable expense per unit/Selling price per unit
Fixed expense per unit
(Selling price per unit - Variable expense per unit) /Selling price per unit.
Instructor Explanation: Chapter 6
Points Received: 6 of 6
Comments:
10. Question : (TCO E) In an income statement prepared using the variable costing method, fixed manufacturing overhead would
Student Answer: not be used.
be used in the computation of the contribution margin.
be used in the computation of net operating income but not in the computation of the contribution margin.
be treated the same as variable manufacturing overhead.
Instructor Explanation: Chapter 7
Points Received: 6 of 6
Comments:
Question :
(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.................................................................................
$910
Purchases of raw materials................................................
$225
Direct labor.......................................................................
$245
Manufacturing overhead....................................................
$265
Administrative expenses....................................................
$150
Selling expenses................................................................
$140
Raw materials inventory, beginning.....................................
$15
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
Required: Prepare a Schedule of Cost of Goods Manufactured in the text box below.
Question :
(TCO F) The Illinois Company manufactures a product that goes through three processing departments. Information relating to activity in the first department during June is given below.
Percentage Completed
Units Materials Conversion
Work in process, June 1 150,000 75% 55%
Work in process, Jun 30 145,000 85% 75%
The department started 475,000 units into production during the month and transferred 480,000 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 :
(TCO B) A tile manufacturer has supplied the following data:
Boxes of tile produced and sold 625,000
Sales revenue $2,975,000
Variable manufacturing expense $1,720,000
Fixed manufacturing expense $790,000
Variable selling and admin expense $152,000
Fixed selling and admin expense $133,000
Net operating income $180,000
Required:
a. Calculate the company's unit contribution margin.
b. Calculate the company's unit contribution ratio.
c. If the company increases its unit sales volume by 5% without increasing its fixed expenses, what would the company's net operating income be?
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 costs:
Fixed manufacturing overhead
$ 300,000
Fixed selling and admin
$ 125,000
Required:
a. What is the unit product cost for the month under variable costing?
b. What is the unit product cost for the month under absorption costing?
c. Prepare an income statement for the month using the variable costing method.
d. Prepare an income statement for the month using the absorption costing method.
Answered
Other
/
Other
24 Dec 2015
Answers (1)
ACCT505/ACCT 505 WEEK 4 MIDTERM
Answer Attachments
1 attachments —