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Week 4 Midterm - Devry ACCT 505




1.;Question;(TCO A) The variable portion of advertising costs is a;2.;Question;(TCO A) A cost incurred in the past that is not relevant to any current decision is classified as a(n);3.;Question;(TCO A) Depreciation of office buildings and office equipment is also known as;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?;5.;Question;(TCO F) Emco Company uses direct labor cost as a basis for computing its predetermined overhead rate. In computing the predetermined overhead rate for last year, the company included in direct labor cost a portion of indirect labor. The effect of this misclassification will be to;6.;Question;(TCO F) Which of the following statements about the process-costing system is incorrect?;7.;Question;(TCO F) The FIFO method only provides a major advantage over the weighted-average method in that;8.;Question;(TCO B) The contribution margin equals;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?;10.;Question;(TCO E) In an income statement prepared using the variable costing method, fixed manufacturing overhead would;1.;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.;2.;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.;3.;Question;(TCO B) A cement manufacturer has supplied the following data;Tons of cement produced and sold 220,000;Sales revenue $924,000;Variable manufacturing expense $297,000;Fixed manufacturing expense $280,000;Variable selling and admin expense $165,000;Fixed selling and admin expense $82,000;Net operating income $100,000;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?;4.;Question;(TCO E) The Dean Company produces and sells a single product. The following data refer to the year just completed;Selling price;$450;Units in beginning Inventory;0;Units produced;25,000;Units sold;22,000;Variable costs per unit;Direct materials;$ 200;Direct labor;$ 50;Variable manufacturing overhead;$ 30;Variable selling and admin;$ 15;Fixed Costs;Fixed manufacturing overhead;$ 275,000;Fixed selling and admin;$ 230,000;Assume that direct labor is a variable cost.;Required;a. Compute the cost of a single unit of product under both the absorption costing and variable costing approaches.;b. Prepare an income statement for the year using absorption costing.;c. Prepare an income statement for the year using variable costing.


Paper#74144 | Written in 18-Jul-2015

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