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Devry ACCT346 Midterm 2014




Question;Grade Details - All Questions;Page: 1;2;Question 1. Question;The goal of managerial;accounting is to provide information that managers need for;Student Answer: planning.;control.;decision making.;All of the above answers are correct.;Points Received: 5 of 5;Comments;Question 2. Question;The fundamental difference;between managerial and financial accounting is that;Student Answer: all financial;accounting information is audited by Certified Public Accountants whereas;managerial accounting information is not audited by anyone.;managerial accounting is concerned principally;with determining the cost of inventory (ending inventory and cost of goods;sold), whereas financial accounting is concerned with a wider range of the;organization's activities.;managerial accounting provides information for;decision-makers within the organization, whereas financial accounting provides;information for individuals and institutions external to the organization.;financial accounting information follows U.S.;Generally Accepted Accounting Principles, whereas managerial accounting;information generally follows rules set forth by the Institute of Management;Accountants.;Points Received: 5 of 5;Comments;Question 3. Question;Which of the following costs;does not change when the level of business activity changes?;Student Answer: total fixed costs;total variable costs;total direct materials costs;fixed costs per unit;Points Received: 5 of 5;Comments;Question 4. Question;Which of the following is not;likely to be a fixed cost?;Student Answer: direct materials;rent;depreciation;salary of the human resources director;Points Received: 5 of 5;Comments;Question 5. Question;Sunk costs;Student Answer: are not relevant;for decision making;would include the cost of your tuition after;the refund deadline has passed.;are costs that have been incurred in the past.;All of the above are correct.;Points Received: 0 of 5;Comments;Question 6. Question;The wages of a timekeeper in;the factory would be classified as;Student Answer: a prime cost.;direct labor.;indirect labor.;compliance costs.;Points Received: 5 of 5;Comments;Question 7. Question;Shula's 347 Grill has budgeted;the following costs for a month in which 1,600 steak dinners will be produced;and sold: Materials, $4,080, hourly labor (variable), $5,200, rent (fixed);$1,700, depreciation, $800, and other fixed costs, $600. Each steak dinner;sells for $14.00 each. What is Shula's budgeted profit?;Student Answer: $22,400;$13,120;$10,020;$12,380;Points Received: 5 of 5;Comments;Question 8. Question;Which of the following is a period;cost?;Student Answer: Rent on an;factory building;Depreciation on production equipment;Raw materials cost;Commissions paid on each unit sold;Points Received: 0 of 5;Comments;Question 9. Question;Which one of the following;would not be classified as manufacturing overhead?;Student Answer: Indirect labor;Direct materials;Insurance on factory building;Indirect materials;Points Received: 5 of 5;Comments;Question 10. Question;Stevens Manufacturing Company;reported the following year-end information: beginning work in process;inventory, $180,000, cost of goods manufactured, $516,000, beginning finished;goods inventory, $252,000, ending work in process inventory, $220,000, and;ending finished goods inventory, $264,000. Stevens Manufacturing Company's cost;of goods sold for the year is;Student Answer: $504,000.;$528,000.;$476,000.;$252,000.;Points Received: 0 of 5;Comments;Question 11. Question;If the amount of underapplied;overhead or overapplied overhead is not material, the Manufacturing Overhead;account is closed to;Student Answer: Raw Materials;Inventory.;Work in Process Inventory.;Finished Goods Inventory.;Cost of Goods Sold.;Points Received: 0 of 5;Comments;Question 12. Question;Which of the following;companies is most likely to use a process costing system?;Student Answer: A law office;A custom home builder;A car repair business;A food manufacturer;Points Received: 5 of 5;Comments;Question 13. Question;Labor and overhead are often;grouped together and referred to as;Student Answer: prime costs.;conversion costs.;total manufacturing costs.;equivalent unit costs.;Points Received: 0 of 5;Comments;Question 14. Question;3,000 units in a process that;are 70% complete, are referred to as;Student Answer: 3,000 equivalent;units of production.;900 equivalent units of production.;2,100 equivalent units of production.;900 unequivalent units of production.;Points Received: 5 of 5;Comments;Question 15. Question;When the level of activity;increases, the variable cost per unit;Student Answer: decreases.;remains constant.;increases.;fluctuates, depending on the amount of the;increase in activity.;Points Received: 5 of 5;Comments;Question 16. Question;Which of the following is not;involved in determining the break-even point?;Student Answer: anticipated sales for the next period;fixed costs;selling price per unit;variable cost per unit;Points Received: 5 of 5;Comments;Question 17. Question;At Havana Cafe, the break-even;point is 2,000 units. If fixed costs total $300,000 and variable costs are $30;per unit, what is the selling price per unit?;Student Answer: $5;$210;$150;$180;Points Received: 0 of 5;Comments;Question 18. Question;If a company had a;contribution margin of $200,000 and a contribution margin ratio of 40%, total;variable costs must have been;Student Answer: $300,000.;$120,000.;$500,000.;$80,000.;Points Received: 0 of 5;Comments;Question 19. Question;Sales are $250,000 and;variable costs are $150,000. What is the contribution margin ratio?;Student Answer: 67%;40%;60%;cannot be determined because amounts are not;expressed per unit.;Points Received: 5 of 5;Comments;Question 20. Question;(TCO 4) Which of the following;will have no effect on the break-even point in units?;Student Answer: The selling price;increases;The variable cost per unit increases;The sales volume increases;Total fixed costs increase;Instructor Explanation: Chapter 4, Page 131;Points Received: 5 of 5;Comments;Question 21. Question;(TCO 4) The margin of safety;is the difference between;Student Answer: total revenue and;total fixed costs.;expected level of sales and the break-even;point.;budgeted fixed costs and actual fixed costs.;selling price and variable cost per unit.;Instructor Explanation: Chapter 4, Page 131;Points Received: 5 of 5;Comments;Question 22. Question;(TCO 1) Which of the following;costs is not part of manufacturing overhead?;Student Answer: electricity for;the factory;depreciation of factory equipment;salaries for the production supervisors;health insurance for sales staff;Instructor Explanation: Chapter 2, Page 37;Points Received: 5 of 5;Comments;Question 23. Question;(TCO 1) Which of the following;is a period cost?;Student Answer: rent on a factory building;depreciation on production equipment;raw materials cost;commissions paid on each unit sold;Instructor Explanation: Chapter 2, Page 39;Points Received: 0 of 5;Comments;Question 24. Question;(TCO 3) Which of the following;describes the differences between job-order and process costing?;Student Answer: Job-order costing;is used in financial accounting while process costing is used in managerial;accounting.;Job-order costing can only be used by;manufacturers, service enterprises must use process costing.;Job-order costing is voluntary while process;costing is mandatory.;Job-order costing traces costs to jobs while;process costing traces costs to departments and averages the costs among the;units worked on during the period.;Instructor Explanation: Chapter 3, Page 84;Points Received: 5 of 5;Comments;Page: 1;2;Page: 1;2;Question 1. Question;Show all steps of your;calculation and formula as well as the final answer (to receive credit);The following monthly data are available for Win, which;produces only one product that it sells for $96 each. Its unit variable costs;are $ 48 and its total fixed expenses are $72,720. Sales during April totaled;1,600 units.;(a) What is the breakeven point in sales dollars for Win?;(b) How many units must Win sell in order to earn a profit;of $24,000?;this cost?;Question 2. Question;Show all steps of your;calculation and formula as well as the final answer (to receive credit);The following data (in thousands of dollars) have been taken;from the accounting records of Dallas;Corporation for the just-completed year.;Sales $950;Purchases of raw materials $170;Direct labor $210;Manufacturing overhead $220;Administrative expenses $180;Selling expenses $140;Raw materials inventory, beginning $70;Raw materials inventory, ending $80;Work-in-process inventory, beginning $30;Work-in-process inventory, ending $20;Finished goods inventory, beginning $100;Finished goods inventory, ending $70;Required: Prepare a Schedule of Cost of Goods Manufactured;statement for the Dallas Corp


Paper#40600 | Written in 18-Jul-2015

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