'Peaceful Pastures\r'

'Mid-term Exam| rogue: | 1 2 3 | 1. | top dog 😐 (TCO 1) The end of managerial accounting is to provide information that managers lease for| | | schoolchild serve well:| | planning. | | | | control. | | | | decision making. | | | | All of the higher up answers be correct. | | teacher definition:| Chapter 1, page 4| | | | Points current:| 4 of 4 | | Comments:| | | | 2. | interrogate 😐 TCO 1) Which of the sideline statements regarding improve be is true? | | | bookman serve:| | When turnout augments, placed terms per whole increases. | | | | When crossroadion decreases, total situated be decrease. | | | When production increases, ameliorate speak to per whole decreases. | | | | When production decreases, total immovable speak tos increase. | | instructor accounting:| Chapter 1, Page 9| | | | Points original:| 4 of 4 | | Comments:| | | | 3. | question 😐 (TCO 1) A retailer barter ford some trendy clothes that feature gone out of sty le and must be marked down to 40% of the original merchandising worth in severalise to be exchange. Which of the pursuance is a sunk cost in this seat? | | | schoolchild respond:| | the current merchandiseing cost | | | | the original change value | | | | the original purchase price | | | | the anticipated profit | teacher commentary:| Chapter 1, Page 9| | | | Points received:| 4 of 4 | | Comments:| | | | 4. | query 😐 (TCO 1) Shula’s 347 Grill has budgeted the following cost for a month in which 1,600 steak dinners impart be assumed and sell: satisfyings, $4,080; hourly aim ( variable quantity), $5,200; rent ( stock-still), $1,700; depreciation, $800; and different amend be, $600. Each steak dinner sells for $14. 00 each. How much is the budgeted variable cost per unit? | | | school-age child dish:| | $5. 80 | | | | $7. 74 | | | | $6. 68 | | | | $3. 25 | | teacher explanation:| Chapter 1, Page 8 ($4,080 + $5,200) / 1,600 = $5. 80| | | | Points legitimate:| 0 of 4 | Comments:| | | | 5. | Question 😐 (TCO 1) Which of the following is an example of a manufacturing smash cost? | | | Student resultant role:| | guarantor at the manufacturing plant | | | | fabric used to produce shirts | | | | cost of shipping product to customers | | | | the salary of the chair of the company | | Instructor commentary:| Chapter 2, Page 37| | | | Points certain:| 0 of 4 | | Comments:| | | | 6. | Question 😐 (TCO 1) fruit cost| | | Student exercise:| | be withal c totallyed manufacturing costs. | | | | atomic number 18 considered an asset until the finished goods argon sold. | | | | experience an expense when the goods atomic number 18 sold. | | | All of the above answers are correct. | | Instructor explanation:| Chapter 2, Page 38| | | | Points certain:| 4 of 4 | | Comments:| | | | 7. | Question 😐 (TCO 1) At celestial latitude 31, 2010, WDT Inc. has a ease in the Work in cover Inventory account of $62,000. At January 1, 2010, the balance was $55,000. Current manufacturing costs for the year are $292,000, and cost of goods sold is $284,000. How much is cost of goods manufactured? | | | Student Answer:| | $292,000 | | | | $299,000 | | | | $277,000 | | | | $285,000 | | Instructor description:| Chapter 2, Page 43 $55,000 + $292,000 †$62,000 = $285,000| | | Points stock:| 0 of 4 | | Comments:| | | | 8. | Question 😐 (TCO 2) BCS fraternity applies manufacturing overhead housed on direct labor hours. Information concerning manufacturing overhead and labor for August follows: | Estimated| true(a)| Overhead cost| $174,000| $171,000| betoken labor hours| 5,800| 5,900| shoot for labor cost| $87,000| $89,975| How much overhead should be applied in total during August? | | | Student Answer:| | 177,000 | | | | 179,950 | | | | 171,100 | | | | 168,200 | | Instructor Explanation:| Chapter 2, Page 54 ($174,000 / 5,800) x 5,900 = 177,000| | | | Points certain:| 0 of 4 | | Comments:| | | 9. | Question 😐 (TCO 2) Citrus order incurred manufacturing overhead costs of $300,000. amount of money overhead applied to jobs was $306,000. What was the amount of overapplied or underapplied overhead? | | | Student Answer:| | $7,000 overapplied | | | | $6,000 overapplied | | | | $6,000 underapplied | | | | $13,000 underapplied | | Instructor Explanation:| Chapter 2, Page 55 $306,000 †$300,000 = $6,000 overapplied| | | | Points Received:| 4 of 4 | | Comments:| | | | 10. | Question 😐 (TCO 3) Companies in which of the following industries would non be in all likelihood to use member be? | | | Student Answer:| | cereals | | | paints | | | | cosmetics | | | | auto body shop | | Instructor Explanation:| Chapter 3, Page 84| | | | Points Received:| 4 of 4 | | Comments:| | | | 11. | Question 😐 (TCO 3) The Bl closing Department began the arrest with 45,000 units. During the period the division received an opposite 30,000 units from the prior department an d end 60,000 units during the period. The remaining units were 75% complete. How much are resembling units in The Blending Department’s work in process inventory at the end of the period? | | | Student Answer:| | 30,000 | | | | 22,500 | | | | 15,000 | | | | 11,250 | Instructor Explanation:| Chapter 3, Page 88 (45,000 + 30,000 †60,000) x 75% = 11,250| | | | Points Received:| 4 of 4 | | Comments:| | | | 12. | Question 😐 (TCO 3) fire warden Glass Company manufactures glass for French doors. At the start of may, 2,000 units were in-process. During May, 11,000 units were completed and 3,000 units were in process at the end of May. These in-process units were 90% complete with respect to material and 50% complete with respect to conversion costs. separate information is as follows: Work in process, May 1:| | Direct material| $36,000| diversity costs| $45,000| Costs incurred during May:| |Direct material| $186,000| Conversion costs| $255,000| How much is the cost p er alike unit for direct materials? | | | Student Answer:| | $24. 00 | | | | $16. 20 | | | | $15. 86 | | | | $13. 58 | | Instructor Explanation:| Chapter 3, Page 89 ($36,000 + $186,000) / [11,000 + (3,000 x 90%)] = $16. 20| | | | Points Received:| 0 of 4 | | Comments:| | | | 13. | Question 😐 (TCO 4) Duradyne, Inc. has total costs of $18,000 when 2,000 units are produced and $26,000 when 5,200 units are produced. During March, 4,000 units were produced and sold for $8 each. What is the variable cost per unit? | | | Student Answer:| | $2. 0 | | | | $0. 40 | | | | $2. 00 | | | | $4. 00 | | Instructor Explanation:| Chapter 4, Page 127 ($26,000 †$18,000) / (5,200 †2,000) = $2. 50| | | | Points Received:| 4 of 4 | | Comments:| | | | | Page: | 1 2 3 | 1. | Question 😐 (TCO 4) The three elements of the profit delimitation are:| | | Student Answer:| | change price per unit, variable cost per unit, and fixed cost per unit. | | | | summate revenues, total variable c osts, and total fixed cost. | | | | Selling price per unit, variable cost per unit, and total fixed costs. | | | | Selling price per unit, total variable costs, and fixed cost per unit. | Instructor Explanation:| Chapter 4, Page one hundred thirty| | | | Points Received:| 0 of 4 | | Comments:| | | | 2. | Question 😐 (TCO 4) rhythm K piece of furniture has a contri hardlyion borderline dimension of 16%. If fixed costs are $176,800, how legion(predi goofballe) dollar bills of revenue must the company come in order to reach the break-even point? | | | Student Answer:| | $1,105,000 | | | | $282,880 | | | | $1,060,800 | | | | $208,476 | | Instructor Explanation:| Chapter 4, Page 133 $176,800 / 16% = $1,105,000| | | | Points Received:| 4 of 4 | | Comments:| | | | 3. | Question 😐 (TCO 4) horny Company produces a single product that is sold for $85 per unit.If variable costs per unit are $26 and fixed costs total $47,500, how many units must Randy sell in order to earn a profit of $100,000? | | | Student Answer:| | 1,735 | | | | 618 | | | | 890 | | | | 2,500 | | Instructor Explanation:| Chapter 4, Page 132 ($100,000 + $47,500) / ($85 †$26) = 2,500 units| | | | Points Received:| 4 of 4 | | Comments:| | | | 4. | Question 😐 (TCO 5) Which of the following is hardened differently in wax costing than in variable costing? | | | Student Answer:| | Direct materials | | | | heady manufacturing overhead | | | | Direct labor | | | | versatile manufacturing overhead | Instructor Explanation:| Chapter 5, Page 168| | | | Points Received:| 4 of 4 | | Comments:| | | | 5. | Question 😐 (TCO 5) Which of the following items appears on a variable costing income statement but not on a full costing income statement? | | | Student Answer:| | Sales | | | | staring(a) margin | | | | Net income | | | | Contribution margin | | Instructor Explanation:| Chapter 5, Page 169| | | | Points Received:| 4 of 4 | | Comments:| | | | 6. | Question 😐 (TCO 5) Peak Manufacturing produces one C blowers. The selling price per snow blower is $100. Costs involved in production are: Direct Material per unit| $20| Direct Labor per unit| 12|Variable manufacturing overhead per unit| 10| Fixed manufacturing overhead per year| $148,500| In addition, the company has fixed selling and administrative costs of $150,000 per year. During the year, Peak produces 45,000 snow blowers and sells 30,000 snow blowers. How much is exonerate income apply full costing? | | | Student Answer:| | 1,641,000 | | | | $1,590,000 | | | | $1,441,500 | | | | $1,491,000 | | Instructor Explanation:| Chapter 5, Pages 172-174 Sales = $100 x 30,000 = $3,000,000Expenses = [($148,500 / 45,000) + $20 + $12 + $10] x 30,000 = $1,359,000 COGS + $150,000 = $1,509,000Net Income = $3,000,000 †$1,509,000 = $1,491,000| | | Points Received:| 0 of 4 | | Comments:| | | | 7. | Question 😐 (TCO 6) Costs may be allocated to | | | Student Answer:| | products. | | | | services. | | | | departments. | | | | any of the above. | | Instructor Explanation:| Chapter 6, Page 201| | | | Points Received:| 4 of 4 | | Comments:| | | | 8. | Question 😐 (TCO 5) An allocation base| | | Student Answer:| | is the minimum amount to be allocated to a cost object. | | | | coordinates the manufacturing overhead costs as they are incurred. | | | | result always be slight than the variable costs for a product. | | | | relates the cost family to the cost objectives. | Instructor Explanation:| Chapter 6, Page 202| | | | Points Received:| 4 of 4 | | Comments:| | | | 9. | Question 😐 (TCO 6) Sierra Company allocates the estimated $200,000 of its accounting department costs to its production and gross revenue departments because the accounting department supports the other two departments, oddly with regard to payroll and accounts payable functions. The costs will be allocated based on the number of employees using the direct method. Information regarding costs and emp loyees follows: Department| Employees| account statement| 4| action| 36| Sales| 12|How much of the accounting department costs will be allocated to the production and gross gross revenue departments? | | | Student Answer:| | Production: $150,000 Sales: $50,000 | | | | Production: $180,000 Sales: $60,000 | | | | Production: $1,800,000 Sales: $600,000 | | | | Production: $22,222 Sales: $66,667 | | Instructor Explanation:| Chapter 6, Pages 213-214 Production = [$200,000 / (36 + 12)] x 36 = $150,000Sales = [$200,000 / (36 + 12)] x 12 = $50,000| | | | Points Received:| 4 of 4 | | Comments:| | | | 10. | Question 😐 (TCO 7) A company is severe to decide whether to keep or declension the sporting goods department in its department store.If the segment is dropped, the manager will be fired. The managers salary, in relation to the decision to keep or drop the sporting goods department, is| | | Student Answer:| | avoidable and so relevant. | | | | not avoidable and hence relevant. | | | | sunk and on that pointfore not relevant. | | | | the same for all alternatives and in that respectfore not relevant. | | Instructor Explanation:| Chapter 7, Pages 256-257| | | | Points Received:| 0 of 4 | | Comments:| | | | 11. | Question 😐 (TCO 7) BigByte Company has 12 obsolete com enjoiners that are carried in inventory at a cost of $13,200.If these calculators are upgraded at a cost of $7,500, they could be sold for $15,300. Alternatively, the calculating machines could be sold â€Å"as is” for $9,000. What is the net advantage or disadvantage of reworking the electronic reckoners? | | | Student Answer:| | $6,300 advantage | | | | $1,200 disadvantage | | | | $5,400 disadvantage | | | | $3,000 advantage | | Instructor Explanation:| Chapter 7, Pages 251-252 ($15,300 †$9,000) †($7,500 †$0) = ($1,200)| | | | Points Received:| 4 of 4 | | Comments:| | | | 12. | Question 😐 (TCO 7) Olde Store has 12,000 fucks of crab meat just a week p ast the expiration date. Each can cost $0. 31.The cans could be sold as is for $0. 20 each, or relabeled and sold as gourmet cat food. The cost of relabeling the cans would be $0. 04 per can and the cans would then sell for $0. 29 per can. What should be done with the cans and why? | | | Student Answer:| | The cans should be thrown away since there will be a loss with the other alternatives. | | | | The cans should be relabeled into cat food since the gross sales price increases $0. 09 per can and the cost is only $0. 04 per can. | | | | The cans should be put on clearance since there is no intellect to put more money into something that is already selling below cost. | | | It doesn’t matter what you do since all alternatives result in a loss. | | Instructor Explanation:| Chapter 7, Pages 251-252| | | | Points Received:| 4 of 4 | | Comments:| | | | Page: | 1 2 3 | 1. | Question 😐 (TCO 3) Why is it unavoidable to use equivalent units in a process costing arrangement ? | | | Student Answer:| | Process costing, as we have seen, is essentially a system of averaging. Equivalent Units In calculating the average unit cost, it is necessary to convert the number of part completed units in Work in Process to an equivalent number of whole units. other(a)wise, the denominator in the average unit cost calculation will be misstated. When partially completed units are reborn to a comparable with(predicate) number of completed units, they are referred to as equivalent units. Jiambalvo. Managerial Accounting, 4th Edition. John Wiley & Sons. . | | Instructor Explanation:| In a company that uses process costing, there may be incomplete units in ending Work in Process inventory. These units are converted to a comparable number of completed units in order to calculate the cost per equivalent unit. | | | | Points Received:| 20 of 20 | | Comments:| | | | 2. Question 😐 (TCO 7) Computer dress shop sells computer equipment and home office piece of furni ture. Currently, the furniture product line takes up approximately 50% of the companys retail floor space. The president of Computer Boutique is trying to decide whether the company should continue offering furniture or just concentrate on computer equipment. If furniture is dropped, salaries and other direct fixed costs can be avoided. In addition, sales of computer equipment can increase by 13%. Allocated fixed costs are assigned based on relative sales. | Computer| Home Office| | | Equipment| Furniture| Total| Sales| $1,200,000| $800,000| $2,000,000|Less cost of goods sold| 700,000| 500,000| 1,200,000| Contribution margin| 500,000| 300,000| 800,000| Less direct fixed costs:| | | | Salaries| 175,000| 175,000| 350,000| Other| 60,000| 60,000| 120,000| Less allocated fixed costs:| | | | Rent| 14,118| 9,882| 24,000| Insurance| 3,529| 2,471| 6,000| Cleaning| 4,117| 2,883| 7,000| Presidents salary| 76,470| 53,350| 130,000| Other| 7,058| 4,942| 12,000| Total costs| 340,292| 380,708| 649, 000| Net Income| $159,708| ($ 8,708)| $151,000| | | | | | Prepare an incremental analysis to determine the incremental effect on profit of discontinuing the furniture line. | | Student Answer:| | | | Instructor Explanation:| Incremental drop in revenue| ($800,000)| Incremental cost savings:| | Cost of sales| 500,000| Salaries| 175,000| Other| 60,000| Incremental increase in computer equipment| | (13% x $1,200,000)| 156,000| Incremental increase in computer equipment| | variable costs (13% x $700,000)| (91,000)| Incremental increase in profit| $ 0| | | | | Points Received:| 10 of 25 | | Comments:| | | | 3. | Question 😐 (TCO 4) Beach Rentals has estimated that fixed costs per month are $79,200 and variable cost per dollar of sales is $0. 2. (a) What is the break-even point per month in sales? (b) What level of sales is needed for a periodic profit of $24,000? (c) For the month of July, the company anticipates sales of $240,000. What is the anticipate level of profit? | | | St udent Answer:| | a. ) $165,000 sales b. ) $215,000 c. ) | | Instructor Explanation:| (a) Contribution margin ratio = 1. 00 †0. 52 = 0. 48 $79,200 ? 0. 48 = $165,000 (b) ($79,200 + $24,000) ? 0. 48 = $215,000 (c) ($240,000 ? 0. 48) †$79,200 = $36,000| | | | Points Received:| 20 of 25 | | Comments:| | | |\r\n'