Practice Exam 1B - Accounting 102 Summer 2009 Practice Exam...

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Managerial Accounting
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Chapter 7 / Exercise 4
Managerial Accounting
Warren/Tayler
Expert Verified
- 1 - Accounting 102Summer 2009 – Practice Exam 1B Number of PointsScore Part I 24 Part II 32 Part III 30 Part IV 14 Total 100
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Managerial Accounting
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Chapter 7 / Exercise 4
Managerial Accounting
Warren/Tayler
Expert Verified
- 2 - PART I (24 Points)B-Cool Corp uses an actual costing system. Following are data for 2000: Beginning InventoryEnding InventoryDirect Materials - $ 60 Direct Materials -$ 114 Work-in-process - $ 96 Finished Goods -Finished Goods - $ 75 Sales Revenue = $690 Materials Purchased = $ 420Conversion Costs = $ 495Direct Manufacturing Cost = $ 636Gross Margin = $ 105(1) Using the remainder of this page and the next page, provide posted T-accounts for Inventories. Then fill in answers to questions asked in question (2) on the next page.$ 90
- 3 - (2) What are?a) Direct Materials Costs Incurred _______b) Factory Overhead Costs _______c) Total Manufacturing Costs incurred _______d) Cost of Goods Manufactured _______e) Cost of Goods Sold _______f) Closing WIP Inventory _______
- 4 - PART II (32 points)RStar Manufacturing Co. makes customized vans. RStar employs a normal job-order system (with overhead applied using direct labor hours) and writes off under- or over-applied overhead to cost of goods sold each month. RStar started the month with noinventories at all. During the month, work was started on three vans, Vans 1, 2, and 3. The following information is given: (a) Budgeted manufacturing overhead for January 2000: $30,000 (b) Budgeted direct-labor hours to be worked January 2000: 5,000 hours (c) Materials purchased during January 2000: $400,000 (d) Materials placed into production in January 2000: Van 1: $100,000 Van 2: $50,000 Van 3: $75,000$225,000(e) Direct labor hours worked in January 2000: Van 1: 1,800 hours Van 2: 2,400 hours Van 3: 1,800 hours6,000 hours (f) Actual manufacturing overhead incurred: $37,500(g) Actual direct labor rate per hour: $10 (h)Van 1 was completed and transferred to finished goods but not soldat the end of the month. (i)Van 2 was completed and soldduring January 2000. (j)Van 3 was notfinished at the end of the month. Required 1. What is the value of the direct materials inventory on January 31, 2000? :

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