ACCT 346 Midterm + Final Exam (Package for exams taken in recent 2 years))

| October 3, 2018

ACCT 346 Managerial Accounting – DeVryACCT 346 Midterm (Version 1 – Taken in 2015)Page 1Question (TCO 1) The goal of managerial accounting is to provide information that managers…? (Points : 7) Question (TCO1) Josie’s Grill budgeted the following costs for a month in which 1,500 steak dinners will be produced and sold: materials, $4,080; hourly labor (variable), $5,200; rent (fixed), $1,700; depreciation, $800; and other fixed costs, $600. Each steak dinner sells for $14.00 each. How much is the budgeted……? (Points : 7)Question (TCO 1) Which of the following costs is NOT part of manufacturing overhead? (Points : 7) Question (TCO 1) On December 31, 2015, GLE Inc. has a balance in the Work-in-Process Inventory account of $62,000. On January 1, 2015, the balance was $55,000. Current manufacturing costs for the year are $292,000, and cost of goods sold is $284,000. How much is cost of goods manufactured? (Points : 7)Question (TCO 2) Paul Company applies manufacturing overhead based on direct labor cost. Information concerning manufacturing overhead….……How much is the predetermined overhead rate? (Points : 7)Question (TCO 2) During 2015, Michael Company applied overhead using a job-order costing system at a rate of $15 per direct labor hours. Estimated direct labor hours for the year were 150,000, and estimated overhead for the year was $2,250,000. Actual direct labor hours for 20×1 were 140,000, and actual overhead was $2,400,000……What is the amount of under- or over-applied overhead for the year? (Points : 7)Question (TCO 2) Manufacturers follow four steps to implement a manufacturing overhead allocation system. What is the first step? (Points : 7)Page 2Question (TCO 1) Which of the following types of costs are conversion costs? (Points : 7) Question (TCO 6) In an activity-based costing system, cost reduction is accomplished by identifying a:Question (TCO 3) Kerner Manufacturing uses a process cost system to manufacture laptop computers. The following information summarizes operations relating to laptop computer model #KJK20 during the quarter ending March 31:…………Beginning work-in-process inventory was 50% complete for direct labor costs. Ending work-in-process inventory was 75% complete for direct labor costs. What is the equivalent amount of units of production using the weighted-average unit cost inventory valuation method? (Points : 7)Question(TCO 2) Sweet Co. uses budgeted overhead rates to apply overhead to individual jobs. They use a system based on direct labor hours. Last year, the company………..(a) What is the budgeted overhead rate for the company? (b) If Job #34567 had the following:………then what is the total cost of Job #34567? (Points : 30) Question (TCO 3) Adnan Company uses process costing. At the beginning of the month, there were 6,000 units in process, 80% complete with respect to material and 70% complete with respect to conversion costs. 30,000 units were started during the month and 30,000 units were completed. The units in ending Work-In-Process Inventory were 80% complete with respect to material and 20% complete with respect……….? (Points : 30) Question (TCO 6) Handy Display Company manufactures display cases to be sold to retail stores. The cases come in three sizes: large, medium, and small. Currently, Handy Display Company uses a single plant-wide overhead rate to allocate its $3,357,800 of annual manufacturing overhead. Of this amount, $900,000 is associated with the Large Case line, $1,404,480 is associated with the Medium Case line,…………..Requirement: Calculate the departmental overhead rate for each of the three departments listed. (Points : 30)Question (TCO 2)Fred Co. incurred costs of $700,000 for direct materials (raw) purchased. Direct labor was $5,000 and factory overhead was $20,000 for March……..What is the cost of goods manufactured? Please show your work. (Points : 30)ACCT 346 Midterm (Version 2 – Taken in 2013)1.(TCO 4) Which of the following will have no effect on the break-even point in units? (Points : 4)2.(TCO 4) Circle K Furniture has a contribution margin ratio of 16%. If fixed costs are $176,800, how many dollars of revenue must the company generate in order to reach the break-even point? (Points : 4)3.(TCO 4) Paula Corporation sells a single product at a price of $275 per unit. Variable cost per unit is $135 and fixed costs total $356,860. If sales are expected to be $825,000, what is Paula’s margin of safety? (Points : 4)4.(TCO 5) Which of the following is treated differently in full costing than in variable costing? (Points : 4)5.(TCO 5) Which of the following items on a variable costing income statement will change in direct proportion to a change in sales?(Points: 4)6.(TCO 5) Peak Manufacturing produces snow blowers. The selling price per snow blower is $100. Costs involved in production are:…… (Points : 4)7.(TCO 5) The cost objective is the (Points : 4)8.(TCO 6) Which of the following statements about cost pools is not true? (Points : 4)9.(TCO 6) AC Consulting Company has purchased a new $18,038 copier. This overhead cost will be shared by the purchasing, accounting, and information technology departments since those are the only departments which will be able to access the machine. The company has decided to allocate the cost based on the number of copies made by each department. Each department has estimated the number of copies which will be made over the life of the copier……. (Points : 4)10.(TCO 7) A company is trying to decide whether to keep or drop the sporting goods department in its department store. If the segment is dropped, the manager will be fired. The manager’s salary, in relation to the decision to keep or drop the sporting goods department, is (Points : 4)11.(TCO 7) BigByte Company has 12 obsolete computers that are carried in inventory at a cost of $13,200. If these computers are upgraded at a cost of $7,500, they could be sold for $15,300. Alternatively, the computers could be sold “as is” for $9,000. What is the net advantage or disadvantage of reworking the computers? (Points : 4)12.(TCO 7) YXZ Company’s market for the Model 55 has changed significantly, and YXZ has had to drop the price per unit from $275 to $135. There are some units in the work in process inventory that have costs of $160 per unit associated with them. YXZ could sell these units in their current state for $100 each. It will cost YXZ $10 per unit to complete these units so that they can be sold for $135 each. Which of the following is the amount of sunk costs in this problem? (Points : 4)10.(TCO 3) Which of the following companies is most likely to use a process costing system? (Points : 4)11.(TCO 3) The Blending Department began the period with 45,000 units. During the period the department received another 30,000 units from the prior department and completed 60,000 units during the period. The remaining units were 75% complete. How much are equivalent units in The Blending Department’s work in process inventory at the end of the period? (Points : 4)13.(TCO 4) Total costs were $75,800 when 30,000 units were produced and $95,800 when 40,000 units were produced. Use the high-low method to find the estimated total costs for a production level of 32,000 units. (Points : 4)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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