practice exam 2

practice exam 2 - Version A Name _ Section_ Accounting II-...

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Version A Name ____________________________ Page 1 Section_________________________ Accounting II- 2312 Professor Jeff Austin Practice Exam II IMPORTANT INFORMATION 1. On this exam you may not use any formula sheets. 2. You will need a pencil and calculator. 3. Show your work with carefully labeled computations so that I may assign partial credit. If I cannot understand your computations I will not assign partial credit. 4. You will be allowed 1 hour and 20 minutes for this exam. Review the points available on each problem and allocate your time wisely. 5. Round all final answers to the nearest dollar. (Do not round intermediate calculations.) 6. Check your exam to insure you have a total of eight pages, including this one. I will neither give nor receive aid on this test. _______________________ Signature SUMMARY OF POINTS Possible points Score Problem I. 12 pts. ____ Problem II. 27 pts. ____ Problem III 18 pts. ____ Problem III 18 pts. ____ TOTAL POINTS 75 pts. ____
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Version A Name ____________________________ Page 2 Problem I (12 pts) Arrow Company manufactures two products, Product F and Product G. Product F uses 1.2 pounds of direct materials per unit. Product G uses 1.6 pounds of direct materials per unit. Direct labor is $2 per unit for both products. The company expects to produce and sell 3,200 units of Product F and 2,100 units of Product G during the current year. The company uses activity-based costing to compute unit product costs for internal reports. Data relating to the company's three activity cost pools are given below for the current year: Estimated Activity Overhead Expected Activity Cost Pool Costs Product F Product G Total Machine setups. .................. $7,020 130 130 260 Purchase orders. ................. $69,700 520 1,180 1,700 General factory. .................. $101,160 3,520 2,100 5,620 Arrow paid $120,000 for 12,000 pounds of the direct material used in products F and G. 1. Determine the overhead rate for each of the three activity cost pools. Machine setups Purchase orders General Factory 2. Using the activity-based costing approach, determine the overhead cost per unit for each product. Product F Product G 3. Arrow sells Product F for $45 and Product G for $58. Should they continue selling each of these products at these prices? Show computations to support answer.
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Version A Name ____________________________ Page 3 Problem II, Part A (17pts) The following T accounts are for Harvard Company. Raw Materials Manufacturing Overhead Bal 7/1 19,000 Credits (a) Indirect Mats 8,900 Credits 91,000 Debits 88,400 Indirect Labor 16,000 Bal. 7/30 (b) Other Overhead (l) Work in Process Bal 7/1 (c) Credits (f) DM 75,000 DL (d) MOH (e) Bal. 7/30 (g) Finished Goods Cost of Goods Sold Bal 7/1 (h) Credits (j) Debits (m) Debits (i) Bal. 7/30 (k) 1. On July 1, two jobs were in process: Job No. 4085 and Job No. 4086 with costs of $17,000 and $8,200, respectively. 2.
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practice exam 2 - Version A Name _ Section_ Accounting II-...

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