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UMUC ACCT301 final exam




Question;Name;Date;8Problems;9 multiple choice/ matching;Chapters:21,2 2,23,24;UMUC-ACCT 301DueOct;12, 2014;Question1: (2 points);Silver Gulch is a company that manufactures;cash registers for use in retail stores. The company has budgeted variable;costs of $183.50 for each cash register and fixed costs of $11,150 per month. Silver;Gulch?s static budget predicted production and sales of 132 cash registers in;October, but the company actually produced and sold only 84 cash registers at a;total cost of $29,200.;Silver Gulch?s total;flexible budget for 84 cash registers per month is;Question2: (2 point);Black Hills Gold has a division that;manufactures a component that sells for $176 each and has variable costs of $63;and fixed costs of $73. Another division wants to purchase the component. What;is the minimum transfer price if the division is operating at capacity?;Question;3: (2 points);Calamity;Jane Clothing Company makes ski hats, gloves, winter coats, swimwear, rain;jackets, and flip-flops. The company has found it beneficial to split;operations into two divisions based on the season for the apparel line: summer clothes;and winter clothes. The following divisional information is available for the;past year;Net income;Operating income;Average total Assets;ROI;Winter Apparel;14,250;2,850;12,000;23.8%;Summer Apparel;21,250;4,250;17,500;24.3%;Calamity Jane;Clothing?s management has specified an 18.5% target rate of return. Compute;each division?s residual income.;A.;Calculate the residual income for the;summer apparel.;B.;Calculate the residual income for the;winter apparel;Question;4: (4 points);Tombstone;a regional manufacturer of hand and power tools, segments its business;according to customer type: professional and non-professional. The following divisional;information was available for the past year;Net income;Operating income;Average total Assets;Professional;$375,000;$47,775;$147,000;Non- Pro;$750,000;$124,800;$312,000;A.;Calculate each division?s ROI.(Round;your answer to the nearest tenth percentage, XX.X%);B.;Calculate each division?s profit margin;ratio. (Round the ratio to one hundredth of a percent, X.XX%.);C.;Calculate each division?s asset;turnover ratio (Round the ratio to two decimal places, X.XX);D.;Use the expanded ROI formula to confirm;your results from requirement A. (Round your answer to the nearest;tenth percentage, XX.X%);Question;5: (8 points);Sundance;Company makes a product that regularly sells for $17.50. The product has;variable manufacturing costs of $10.50 per unit and fixed manufacturing costs;of $3.65 per unit (based on $237,250 total fixed costs at current production of;65,000 units). There, total production cost is $14.15. Sundance Company;receives an offer from Holiday Company to purchase 7,500 units for $12.25 each.;Selling and administration costs and futures sales will not be affected by the;sale and Sundance does not expect any additional fixed costs.;A.;If Sundance Company has excess capacity;should it accept the offer from Holiday? Show your calculations;Expected increase in revenue;Expected increase in variable;manufacturing costs;Expected increase/(decrease) in;operating income;B.;Does your answer change if Sundance Company;is operating at capacity? Why or why not?;Revenue at capacity sale price;Less: Revenue at regular sale price;Expected increase/(decrease) in revenue;Question;6: (2 points);Johnny;Ringo Company uses the weighted-average method in its processing costing;system. The Assembly Department started the month with 643 units in process;that were 53% complete, received 1,250 units the Detail Department, and had 414;units in process at the end of the period. All materials are added at the;beginning of the process and conversion costs are incurred uniformly. The units in process at the end of the month;are 27% complete with respect to conversion costs. During the month, 1270 units;were completed and transferred out. The cost per equivalent unit for direct;materials is $3.10. The department incurred the following costs;Begin WIP;Added;Total;Transferred IN;700;12,900;13,600;Direct Materials;875;3,200;4,075;Conversion Costs;650;5,820;6,470;Total;1,625;21,920;23,545;Of;the $4,075 total cost for direct materials, what amount will be transferred;out? (Round;your answer to the nearest dollar);Question 7 (6 points);Use;the following information for, The Wild Bunch, a retail merchandiser of cowboy;boots, to compute the cost of goods sold. (show your work for partial credit);Website;Maintenance $ 71,000;Delivery;Expense $ 11,000;Freight;in $;31,000;Purchases $;420,000;Ending;Inventory $;52,000;Revenues $ 620,000;Marketing;Expense $ 99,000;Beginning;Inventory $ 83,000;Question 8 (2 points);Stagecoach;Charlie provides lawn mowing services to the local community of Lead. In June;the business mowed the lawns of 220 townspeople, earned $4,400 in revenues, and;incurred the following operating costs;Lawn;mowing expense $;665;Storage;Unit Rent expense $;495;Fuel;expense $ 149;Depreciation;expense- Equipment $;55;What;is the cost of service to provide one lawn mowing? (Round your;answer to the nearest cent $X.XX);Question 9 (3 points);Stagecoach;Company projects the following sales;Projections;October;November;December;Cash Sales -10%;$2,600;$3,300;$2,600;Sales on Account -90%;26,100;29,700;23,400;Total Sales;$28,700;$33,000;$26,000;Stagecoach;collects sales on account in the month after the sale. The Accounts Receivable;balance on October 1 is $18,300 which represents September?s sales on account.;Stage coach projects the following cash receipts from customers;Projections;October;November;December;Cash receipts from Cash Sales;$2,600;$3,300;$2,600;Cash receipts from sales on account;18,300;26,100;29,700;Total cash receipts from customers;$20,900;$29,400;$32,300;Recalculate;sales and cash receipts from customers if total sales remain the same but cash;sales are 25% of the total.;October;November;December;Cash Sales -25%;Sales on Account- 75%;Total Sales;October;November;December;Cash receipts from Cash Sales;Cash receipts from sales on account;Total cash receipts from customers;Multiple Choice: (1;point each);1.;Which of the following balanced scorecard perspectives;essentially asks? Can we continue to improve and create value??;a. Financial;b. Internal business;c. Learning and growth;d. Customer;2.;Which of the following costs are irrelevant to business decisisions?;a.;Avoidable costs;b.;Variable costs;c.;Sunk costs;d.;Cost that differ between alternatives;3.;In deciding whether to drop its boots production line, Earp;Company should consider;a.;The costs it could save by dropping the product line;b.;The revenues it would loose from dropping the line;c.;The accumulated depreciation on the boot sewing machines;d.;A and B;e.;A, B, and C;f.;None of the above;Matching the budget;types to the definitions;4;Financial;5;Flexible;6;Operating;7;Operational;8;Static;9;Strategic;A. Includes one level of sales volume;B. Includes various levels of sales volumes;C. Long-term Budgets;D. Includes sales, product, and cost fo goods sold budgets;E. Short term budgets;F. Includes budgeted financial statements


Paper#48434 | Written in 18-Jul-2015

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