ACCT2301-002-PracticeExam1-solution-sp2009

ACCT2301-002-PracticeExam1-solution-sp2009 - Managerial...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 4
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 6
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Managerial Accounting Fall 2008 Exam 1 Version 1 Name: 50 ,0 #001 V2 V3 ..——'* 1. An indirect cost _———- )(can be easily and accurately traced to a cost object. :4 J b. IS hard to trace. c. a! should never be assigned to a cost object. d. stare correlated with activity-based erganzales. e. none of the above. 2. During the month of January, Enterprise, Inc. had total manufacturing costs of $110,000. They incurred $40,000 of direct labor cost and $3 0,000 of overhead cost during the month. If the materials inventory on January 1 was $3,000 less that the materials inventory on January 31, what was the cost of materials purchased during the month? V 03 a. $37,000 W 1p } m $43,000 ‘W C. $40,000 d. $33,000 N 90.0» e. none of the above N 0" g9, 1);“th 3. Production costs consist of a. perioMosts c DST 41 ‘9 b. indirect materials, indirect labor, and admianative costs * n a c. direct materials, direct labor, and sellingcosts direct materials, direct labor, and overhead c. all of the above 4. Talcum, Inc. had materials inventory at July 1 of $12,000. The materials inventory at July 31 was $15,000 and the cost of direct materials used in production was $20,000. What was the cost of materials J ‘0' purchased during the month? J n. a $23,000 w_ . $17,000 13 ll c. $35,000 2 0 use d. $20,000 @ e. none of the above P""‘\"“e‘ E l§ 5. Cost of goods nfanufactured equals a. the cost of direct materials used in production I" p to (ID the product cost of goods completed during the current period (/0 I V (5| c. the product cost of goods sold during the current period d. the cost remaining in ending work in process inventory e. none of the above w DL v2 9 6. Lonborg Co. had the following beginning and ending inventory balances: f, 4‘ 1 January 1, 20x8 December 31 20x8 1L1 Materials $10,000 $ 8,000 Work in Process $18,000 $17,000 Finished Goods $21,000 $16,500 In addition, direct labor costs of $3 0,000 were incurred, overhead equaled $42,000, materials purchased were $27,000 and selling and administrative costs were $22,000. Lonborg Co. sold 25,000 units of product during the year at a sales price of $5.00 per unit. What was the amount of Cost of Goods Manufactured for the year? a. $101,000 WI? b. $124,000 9W 1N ___._......._—-—- c. $100,000 Bag. 18 $102,000 3 to Zq/ADM 751 loz we!“ e. none of the above mm“ 2.? DL 30 8 0H ‘11 g 5-4 111’ 7. Rancor, Inc. had a per—unit conversion cost of $2.50 during April and incurred direct materials cost of i 7’ $100,000, direct labor costs of $75,000, and overhead costs of $45,000 during the month. How many a! K. units did they manufacture during the month? a. 70,000 b. 18,000 CC, = bl, ‘1' OH * : lZo ooo 1SImo + “(51000 t : 75,000 uvv‘fS 5' So .2 e. none of the above 2 /o * 8. Okafor Company manufactures skis. The management accountant wants to calculate the fixed and variable costs associated with the leasing of machinery. Data for the past four months were collected. 4f Month Lease cost Machine hours #6. 3 April $ 21,000 550 May 16,500 L0” June 19,000 510 July 22,230 m H; 51. Using the high-low method calculate the fixed cost of leasing a. $482 3 lb g $ , ,Z or ‘ °D ' 2, 223 L4». :: 33.20 Wm @ $456 $710 - L119 e. none of the above x + ($3310 X '41ch Mb V L ‘0’ £00 " To 9" x 3 “'15'6 v} ,/ :14) 7t 2;) 1% inhale #u 43‘ 9. Andover, Inc. had a gross margin for the month of February totaling $42,000. They sold 5,000 units during the month at a sales price of $20 per unit. What was the amount of Cost of Goods Sold for the month? a. $100,000 52.1.; = (5.0.» 420) c. $47,000 .-——-—-~ @3 $53,000 (,M = 112,000 e. none of the above 10. When a mixed cost is graphed the slope of the line equals a. the fixed cost per unit of output b. the total cost per unit . the sales price per unit é the variable cost per unit of the activity driver e. none of the above 11. The following information has been provided by Lassiter toy company. No. of toys Total cost produced of materials 100,000 $20,000 an £40" 200,000 $40,000 300,000 $60,000 What should the total materials cost be at a production level of 220,000 toys? . $88,000 $44,000 c. $22,000 220,000 2‘ 10 F ’~ 5H: 000 d. $132,000 e. none of the above 12. For a typical company, if output increases by 50% and is still within the relevant range a. total fixed costs will increase by 50% T F; 1* “\fivge per-unit fixed cost will remain the same Fer/9.6+ deems a. total variable costs will remain unchanged T vc ; N was .3 net income will increase by 50% a not» “PR4: Wu; and A pure w. sh uth none of the above em 13. Melody Company sells a product for $14, variable costs are $10 per unit, and total fixed costs are $5 40. If Melody wants to earn an operating profit of $880, how many units must it sell? 1,480 b. 1,260 O puilg "‘ FL "2 c. 1,040 g d. 62 .7 v 3 0 e 247 ‘ «)N‘“. SOHO 8 UWfl-S 3 J; 14. Ruskin Company had utilities cost of $86,000 at an output level of 30,000 units. The utilities cost was a 9 /- mixed cost and the fixed portion was $50,000. What would the estimate of total utilities cost be at an 1 output level of 40,000 units? "hi-9 V¢ *1) a. $65,000 gépcw +Zo.eeo u 1* 117,0 VL/uni‘l' b. $95,000 go 000 FL .1 c. $110,000 w—Js'gg ¥j212£z W 5 d. g6. Hg'boo “L” @ none of the above +» 50' 9,0 FL 0 15. Taran Company incurred the following costs for the months of January ang'lge‘bruary. Type of Cost Janua F ebruary Insurance $ 5,000 $ 5,000 Utilities 4,000 utility company has not yet sent the Feb. bill Depreciation 3,500 3,500 Materials 10,000 20,000 Assume that output was 5,000 units in January and 10,000 units in February, utility cost is a mixed cost, 4*; and the fixed cost of utilities is $3,000. What is the variable cost per unit of output for utilities cost? *2] $.20 In 7.5.9 : *H‘poo . vz'coo c. $.60 /' . d. $.30 ,ooo vc 150w.» 1' 20*” e. Insufficient information available to answer problem 16. Maxwell Company makes treadmills. The company controller wants to calculate the fixed and variable costs associated with the janitorial costs incurred in the factory. Data for the past four months were collected. Month Janitorial costs Machine hours September $ 11,000 5 ‘ October 11,400 610 Hick November 10,200 510 L090 December 10,725 5 50 «Br #3, 9 What would Maxwell Company’s estimate of total janitorial cost be at a level of 625 machine hours? Use the ' -low method and assume 625 machine hours is within the company’s relevant range. $11,580 b. $7,500 I\,Hoo “0200 , ; $12 . c. $4,030 /.,...’c d. $11,300 L10 ' 9° SID e. none of the above M; 6.10 Tviaflde~ 0°” TL -: F6, 4 Vt. / Efimdc ) $111915 10200 = R + 6‘20 Tc =“- qu°g° * (‘ Ft = “Low 11 Justm “7’ W 17. Paney Company makes calendars. Information on cost per unit is as follows: / #13 Direct materials $1.50 in Direct labor 1.20 Variable overhead 0.90 $ Li /uh.‘+' Variable marketing expense 0.40 Fixed marketing expense totaled $13,000 and fixed administrative expense totaled $35,000. The price per calendar is $10. What is the breakeven point in sales dollars? '0 3.43 o Umlrs —$‘-fi’aw :; 0 $120,000 ’ " $80,000 _ _ c. $58,330 8.6- unis — 2,000 4 d. $21,670 fie“ P¢r a“. - e. $28,000 fi ' O @W'Dom 18. Yerke Company makes jungle gyms and tree houses for children. For jungle gyms, the price is $120 and variable expenses are $90 per unit. For tree houses, the p ' - ' ‘. 00 and variable expenses are $100. 4 Q Total fixed expenses are $253,750. Last year, Yerke sol ; ms and 4,000 tree houses. I Now suppose that Yerke expects tree house demand to increase3 8,000 i nits. In this case, what number of jungle gyms would be sold at breakeven? z_ a. 1,750 _, b. 668 3(7 TH {cwm . M393- Fa ~ ¢ CS) 2,625 CM $30 $100 MTxcs = 2%" 1,002 x y 3 32¢” e. 12,000 M" Ta}; 4 £30 ; Zqo gr“; x __._—-— /Mu 11”; 5°81: 1’11 "‘5 i K 19. Xeller Company makes electronic keyboards. The practice model price is $220 and variable expenses are Mal ‘ $190. The deluxe model price is $3 40 and variable expenses are $250. The professional model price is l $1,200 and variable expense per unit is $800. Total fixed expenses are $187,000. Generally, Xeller sells 6 practice models and 3 deluxe models for every professional model sold. Based on the preceding sales mix, how many total keyboards must be sold to breakeven? 35° "‘ "‘2 "5 : Rap“) a. Fewer than 50 total keyboards pr“ be“), pa, M‘meg 9 220 r b. Between 51 and 150 total keyboards 5 30 Q q aw X ’0 Pf” c. Between 151 and 300 total keyboards C M’ D ‘ 70 ' d. Between 301 and 305 total keyboards "a “if” 3 i 1 ‘M P" 2. o A More than 305 total ke boards .. Mix 0 ‘t‘ 20. Firm X and Firm Y are competitors within the same industry. Firm X produces its product using large 41 ' amounts of direct labor. Firm Y has re laced ' ith investment in machinery. Projected sales TRUE? a. Firm X will lose more profit than Firm Y k . . . A (town F1rm Y w111 lose more profit than F1rm X Y S b .. c. Firm X and Firm Y will lose the same amount of profit. "It: \, risk ’Lijk W 3°“ a (1. Neither Firm X nor Firm Y will lose profit. e. Firm X and Firm Y must merge to protect profits. He {3 ) {kg risk ARA no‘t 0/72, &‘ 21. If variable costs per unit decrease, sales volume at the break-even point will d ncrease Z\ a.“ ecrease remain the same . remain the same; however, contribution margin per unit will decrease e. two of the above J 22. Biggers Company expects the following results for the next accounting period: c M :2 ’0 f, 000 LE. Sales $240,000 Variable costs $135,000 _; 6%.: _ 3, 900 w»; i; Fixed costs $40,000 ' fw Expected production and sales in units 3,000 04. ; gg/w; f» The sales manager believes sales could be increased by 400 units if advertising expenditures were increased by $10,000 (this is within the company’s relevant range of production). If advertising expenditures are increased and sales increase by 400 units, the effect on operating income will be a a. decrease of $4,000 .. increase of $4,000 gm 9W“ )1 ' lt” ago J c. increase of $22,000 r» [0 ea fiJu ' d. increase of $30,000 “Lfy—Q’ e cannot be determined from data given I W 0 if 23. A company provided the following data: K (‘2, 1&3, 21 Sales $540,000 C M “Aw 3 "w '3‘ €02 Variable costs $378,000 5H0 Fixed costs $120,000 What is the break-even point in sales dollars? a. $498,000 5 ; [29 Doc ‘ $400,000 307° * L ‘ c. $171,429 = 00 9” d $1 12,500 5 D l, ' e $150,000 24. If sales remain the same and the margin of safety increases, which of the following is true? a. Time has reversed (i.e., the preceding events are an impossibility) the breakeven point has decreased c. fixed costs have increased d. none of these is true e. the breakeven point has increased 25. Please double check that you completed the social security section of the scantron sheet properly (form number is not needed). If you have completed the scantron properly, you will receive credit for this question. ...
View Full Document

This note was uploaded on 02/16/2009 for the course ACCT 2301 taught by Professor Staff during the Spring '08 term at Texas Tech.

Page1 / 6

ACCT2301-002-PracticeExam1-solution-sp2009 - Managerial...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online