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devry acct 505 week 4 midterm

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Question;(TCO A) The following data (in thousands of dollars) have;been taken from the accounting records of Larden 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 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.;Percentage completed;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) 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;$180,000;Required;a. Calculate the company's unit contribution margin.;b. Calculate the company's contribution margin ratio.;c. If the company increases its unit sales volume by 5%;without increasing its fixed expenses, what would the company's net operating;income be?;Question 4. Question;(TCO E) Lehne Company, which has only one product, has;provided the following data concerning its most recent month of operations;Selling price;$ 125;Units in beginning inventory;600;Units oroduced;3000;Units sold;3500;Units in ending inventory;100;Variable costs per unit;Direct materials;$ 15;Direct labor;$ 50;Variable manufacturing overhead;$ 8;Variable selling and admin;$ 12;Fixed costs;Fixed manufacturing overhead;$ 75,000;Fixed selling and admin;$ 20,000;The company produces the same number of units every month;although the sales in units vary from month to month. The company's variable;costs per unit and total fixed costs have been constant from month to month.;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.;Time (US & Canada)(TCO A) The variable portion of advertising costs is a Conversion YES... Period NO. Conversion YES.... Period YES. Conversion NO.... Period YES. Conversion NO.... Period NO. 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 direct costs. sunk costs. incremental costs. None of the above Question 3. Question;(TCO A) Property;taxes on a company's factory building would be classified as a(n) sunk cost. opportunity cost. period cost. variable cost. manufacturing cost.: Question 4. Question;(TCO A) When the activity level is expected to increase;within the relevant range, what effects would be anticipated with respect to;each of the following?Fixed cost per unit Variable cost per unit Increase No change Increase Increase Decrease No change No change Increase Question 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. 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. Question 6. Question;(TCO F) Under a;job-order costing system, the product being manufactured 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. Question 7. Question;(TCO F) Equivalent;units for a process costing system using the FIFO method would be equal to;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. Question 8. Question;(TCO B) The;contribution margin equals sales - expenses. sales - cost of goods sold. sales - variable costs. sales - fixed costs. Question 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? 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. Question 10. Question;(TCO E) Under;variable costing net operating income will tend to move up and;down in response to changes in levels of production. inventory costs will be lower than under;absorption costing. net operating income will tend to vary;inversely with production changes.;="msonormal">

 

Paper#44338 | Written in 18-Jul-2015

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