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ACCT221: Principles of Accounting II

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ACCT221: Principles of Accounting II Summer 2014;Final Exam.;Part I: Multiple Choice (4 points each);1). Which of the following costs are referred to as conversion costs?;a.;Direct labor cost and factory overhead cost;b.;Direct materials cost and direct labor cost;c.;Factory overhead cost;d.;Direct materials cost and factory overhead cost;2) Prime costs are;a.;direct materials and factory overhead;b.;direct materials and direct labor;c.;direct labor and factory overhead;d.;period costs and factory overhead;3) The following are all product costs except;a.;Direct materials;b.;Sales and administrative expenses;c.;Direct labor;d.;Factory overhead;4) In the income statement of a manufacturing company, what replaces purchases in the cost of goods section of a retail company?;a.;Finished goods;b.;Cost of merchandise available;c.;Cost of goods manufactured;d.;Work in process completed;5) Cost of Materials Used $40,000;Direct Labor costs $55,000;Factory Overhead $32,000;Work in Process, beg. $28,000;Work in Process, end. $18,000;Finished Goods,beg. $28,000;Finished Goods, end. $18,000;What is Cost of Goods Sold?;a.;$147,000;b.;$137,000;c.;$10,000;d.;$128,000;6) A company manufactured 50,000 units of a product at a cost of $250,000. They sold 40,000 units for $10 each. What is the gross margin?;a.;$150,000;b.;$200,000;c.;$400,000;d.;$250,000;7) Period costs include;a.;current assets on the balance sheet;b.;current liabilities on the balance sheet;c.;operating costs that are shown on the income statement when products are sold;d.;operating costs that are shown on the income statement in the period in which they are incurred;8) Cost of goods sold for a manufacturer equals cost of goods manufactured plus;a.;beginning work in process inventory less ending work in process inventory;b.;ending work in process inventory less beginning work in process inventory;c.;beginning finished goods inventory less ending finished goods inventory;d.;ending finished goods inventory less beginning finished goods inventory;9) Beginning work in process is equal to;a.;cost of goods manufactured plus ending work in process minus manufacturing costs incurred during the current period;b.;cost of goods manufactured minus ending work in process plus manufacturing costs incurred during the current period;c.;ending work in process plus manufacturing costs incurred during the current period;d.;manufacturing costs incurred during the current period minus ending work in process;10) A company used $35,000 of direct materials, incurred $73,000 in direct labor cost, and $114,000 in factory overhead costs during the period. If beginning and ending work in process inventories were $28,000 and $21,000 respectively, the cost of goods manufactured was;a.;$229,000;b.;$225,000;c.;$215,000;d.;$222,000;11) The Thomlin Company forecasts that total overhead for the current year will be $15,000,000 and that total machine hours will be 200,000 hours. Year to date, the actual overhead is $15,500,000 and the actual machine hours are 220,000 hours. If the Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, what is that overhead rate?;a.;$71 per machine hour;b.;$78 per machine hour;c.;$68 per machine hour;d.;$75 per machine hour;1 2) The Thomlin Company forecasts that total overhead for the current year will be $15,000,000 and that total machine hours will be 200,000 hours. Year to date, the actual overhead is $15,500,000 and the actual machine hours are 220,000 hours. If the Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date) the overhead is over/under applied by?;a.;$1,000,000 over;b.;$1,000,000 under;c.;$500,000 over;d.;$500,000 under;13) In a job order cost accounting system, the entry to record the flow of direct materials into production is;a.;debit Work in Process, credit Materials;b.;debit Materials, credit Work in Process;c.;debit Factory Overhead, credit Materials;d.;debit Work in Process, credit Supplies;14) The recording of the application of factory overhead costs to jobs would include a credit to;a.;Factory Overhead;b.;Wages Payable;c.;Work in Process;d.;Cost of Goods Sold;15) Poobah Manufacturers Inc. has estimated total factory overhead costs of $95,000 and 10,000 direct labor hours for the current fiscal year. If job number 117 incurred 1,600 direct labor hours, the work in process account will be debited and factory overhead will be credited for;a.;$15,200;b.;$1,600;c.;$95,000;d.;cannot be determined;16) The correct entry for each sale of a finished good on account is;a.;debit Cost of Goods Sold, credit Finished Goods;b.;debit Cost of Goods Sold, credit Finished Goods, debit Accounts Receivable, credit Sales;c.;debit Sales Expense, credit Finished Goods, credit Cash, credit Accounts Receivable;d.;debit Work in Process, credit Finished Goods, debit Accounts Receivable, credit Sales;17) Costs that are treated as assets until the product is sold are called;a.;product costs;b.;period costs;c.;conversion costs;d.;selling expenses;18) Marcye Co. manufactures office furniture. During the most productive month of the year, 3,500 desks were manufactured at a total cost of $84,400. In its slowest month, the company made 1,100 desks at a cost of $46,000. Using the high-low method of cost estimation, total fixed costs are;a.;$56,000;b.;$28,400;c.;$17,600;d.;cannot be determined from the data given;19) As production increases, what would you expect to happen to fixed cost per unit?;a.;Increase;b.;Decrease;c.;Remain the same;d.;Either increase or decrease, depending on the variable costs;20) If sales are $820,000, variable costs are 58% of sales, and operating income is $260,000, what is the contribution margin ratio?;a.;53.1%;b.;42%;c.;62%;d.;32%;21) A firm operated at 80% of capacity for the past year, during which fixed costs were $210,000, variable costs were 70% of sales, and sales were $1,000,000. Operating profit was;a.;$90,000;b.;$210,000;c.;$590,000;d.;$490,000;22) Variable costs as a percentage of sales for Lemon Inc. are 80%, current sales are $600,000, and fixed costs are $130,000. How much will oper

 

Paper#81100 | Written in 18-Jul-2015

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