ACCT 346 Final Exam (Exams taken in recent 2 years)

| October 3, 2018

ACCT 346 Final Exam (Version 1 – Taken in 2015)Page 1Question (TCO 4) Assumptions underlying cost-volume-profit analysis include all of the following,..: (Points : 5)Question (TCO 6) Which of the following is true about activity-based costing? (Points : 5)Question (TCO 2) In a traditional job order cost system, the issue of direct materials to a production…: (Points : 5)Question (TCO 5) A cost driver is defined as: (Points : 5)Question (TCO 8) Wood Co. has considerable excess manufacturing capacity. A special job order’s cost sheet includes the following applied manufacturing overhead costs: Fixed costs: 25,000…….Variable costs: 36,000……The fixed costs include a normal $4,500 allocation for in-house design costs, although no in-house design will be done. Instead, the job will require the use of external designers costing $9,250…….? (Points : 5)Question (TCO 1) How does managerial and financial accounting differ in terms of the amount of detail presented and nonmonetary and monetary information? (Points : 25)Question (TCO 2) Wolf Co. estimates that its employees will work 500,000 direct labor hours during the coming year. Total overhead costs are estimated to be $9,600,000 and direct labor costs are estimated to be $12,500,000. Direct Labor hours are actually 450,000…………….If Wolf Co. allocates overhead based on direct labor HOURS, what is the predetermined overhead rate? (Points : 25)Page 2Question (TCO 3)The Mixing Department is the third department in the MZS Inc. factory. During January, there were 4,000 units of beginning inventory in the Mixing Department, and 90,000 units were transferred in from the prior process. There were 8,000 units in ending inventory. The transferred-in cost in the beginning inventory was $170,000………..……….What is the cost per equivalent unit for transferred-in cost? (Points : 25)Question (TCO 4) Assume that we are manufacturing a product and assume that the sales price per unit is $60 and the variable cost is $20 per unit and the fixed cost is $80,000; a) how many units would we need to sell to break even? b) How many units would we need to sell to earn a profit of $120,000? c) How many units do we need to sell to double that profit to $240,000? D) Why didn’t the number of units double from Part B…..? (Points : 25)Question (TCO 5) Sivan Co. manufactures and sells one product. For the year, they started with no opening inventory; produced 100,000 units, but only sold 70,000 units. The selling price per each unit is $60…(a) Prepare the Income Statement using Absorption Costing. (b) Prepare the Income Statement…… (Points : 25)Question (TCO 6) At Long Co. electricity cost starts with a minimum fixed cost, and after that, there is a perfectly variable expense. Using estimated machine hours:……………..What is the a) estimated variable cost per machine hour and what is the b) estimated TOTAL fixed cost? (Points : 25)Question (TCO 7) North Company produces a small part that it uses in the production of its Product H. The company’s unit product cost for the part, based on a production of 100,000 parts per year, is as follows:…………100% of the traceable or avoidable fixed manufacturing cost is supervisor salaries and other costs that can be ELIMINATED if the parts are purchased.…….How much would profits increase or decrease as a result of purchasing the parts from theoutside supplier rather than making them inside the company? (Points : 25)Question (TCO 9)Harry Corp buys equipment for $224,888 that will last for 9 years. The equipment will generate cash flows of $36,000 per year…..(a) What is the Present Value (PV) of this investment (at 10%)? (b) What is the NET Present Value (NPV) of this investment? If you need 10%, should you buy the equipment? (c) What is the Internal Rate of Return (IRR) of this investment? (d) What is the payback period? . (Points : 25)Question (TCO 10) Tanya Corp sells its products on both credit and cash basis. Monthly sales are sold 20% for cash, 80% for credit. Credit sales are collected 65% in the month of sale and 35% the following month. Sales for the first quarter are BUDGETED as follows: January $200,000; February $300,000; March $300,000. Compute cash collections Budgeted for February. How much cash was collected in the month? (Points : 25)ACCT 346 Final Exam (Version 2 – Taken in 2013)Page 11.(TCO 1) A difference between actual costs and planned costs (Points : 4)2.(TCO 1) Which of the following isnot likely to be a fixed cost? (Points : 4)3.(TCO 2) Which of the following is not a manufacturing cost? (Points : 4)4.(TCO 2) A job-order costing system is likely used by a (Points : 4)5.(TCO 3) Equivalent units are calculated by (Points : 4)6.(TCO 3) The Freedom Corporation’s painting department had a beginning inventory of 580 units, which had direct material costs of $22,715. During June, 9,290 units were started and costs of $1,268,085 were incurred for direct material. Ending inventory consists of 1,000 units, which are 35% complete with respect to direct material. What is the cost per equivalent unit for direct material? (Points : 4)7.(TCO 4) Which of the following is not an assumption of C-V-P analysis? (Points : 4)8.(TCO 4) The contribution margin per unit is the difference between (Points : 4)9.(TCO 5) Full costing (Points : 4)10.(TCO 5) Which of the following isnot true when units sold exceed units produced? (Points : 4)11.(TCO 6) Cost-plus contracts are common in which of the following industries? (Points : 4)12.(TCO 6) Which of the following is not generally true when a company compares ABC and traditional costing? (Points : 4)13.(TCO 7) Fixed costs that will be eliminated if a particular course of action is undertaken are called (Points : 4)Page 21.(TCO 7) Two or more products that result from common inputs are called (Points : 4)2.(TCO 8) Activity based pricing seeks to (Points : 4)3.(TCO 8) When deciding to accept or reject a special order, which of the following costs would most likely not be relevant? (Points : 4)4.(TCO 9) Present value techniques (Points : 4)5.(TCO 9) The internal rate of return (Points : 4)6.(TCO 10) A method of budget preparation that requires all budgeted amounts to be justified by the department, even if the amounts were supported in prior periods, is called (Points : 4)7.(TCO 10) Which budget is prepared first? (Points : 4)8.(TCO 10) The difference between standard costs and budgeted costs……… (Points : 4)9.(TCO 10) The overhead volume variance indicates that (Points : 4)10.(TCO 10) A subunit that has responsibility for controlling cost but not revenues is a(n) (Points : 4)11.(TCO 10) Which of the following isnot an advantage of decentralization for a company? (Points : 4)12.(TCO 10) The ratio that measures the return earned independently of how the firm is financed is the (Points : 4)Page 31.(TCO 1) Distinguish between product costs and period costs. Define both types of costs and provide examples. (Points : 20)2.(TCO 6) Pacific Airlines has three service departments; ticketing, baggage handling, and aircraft maintenance. Costs of these departments are allocated to two revenue producing departments, domestic and international flights. Costs for the service departments are not separated into fixed and variable and the totals are as follows:3.(TCO 10) Gina’s Boutique makes custom jewelry. One item, the guru necklace, is a best seller and sales in units for the first quarter are as follows:4.(TCO 2) Singleton Company is trying to determine a predetermined manufacturing overhead. Estimated overhead for the upcoming year is $600,000. Budgeted machine hours are 120,000 hours, and budgeted labor hours are 15,000 hours at a rate of $20.00 per hour. Compute the predetermined overhead rate based on:Page 41.(TCO 9) A project will require an initial investment of $600,000 and is expected to generate the following cash flows:2.(TCO 4) Legal Docs Inc is a legal services firm that files incorporation papers for small businesses. They charge $1,000 per application. This year’s income statement shows the following:3.(TCO 5) The following data has been taken from Air-Tite company in its first year of business.

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