AC505 Practice Final Solutions[1]

# AC505 Practice Final Solutions[1] - Practice Final Answer...

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Practice Final Answer Key Answer Key 1. Direct materials used = 6,000 + 7,000 – 1,000 = 12,000. Cost of goods manufactured = 12,000 + 5,000 + (600 + 500 + 1,900 + 3,500) + 800 – 3,000 = 21,300. Cost of goods sold = 4,000 + 21,300 – 5,300 = 20,000. Gross margin = 31,800 - 20,000 = 11,800 2. B 3. D 4. D Sales 350,000 – CGS 160,000 = 190,000 5. B Sales 350,000 – CGS (variable) 160,000 – Var Sell and Adm 35,000 Var Adm 15,000 = 140,000 6. C 7. A Orig data CM 20.00 X 3000 = 60,000 – FC 25,000 = NI 35,000 New scenario CM 12.50 X 2250 = 28,125 – FC 25,000 = NI 3,125 Decrease of 31,875 8. C BEP Sales = Fixed Exp/CM ratio = 1,400,000/.35 (2,100.000/6,000,000) = 4,000,000 9. B BEP Units = Fixed Exp/Unit CM ratio = 130,000 / 13.00 = 10,000 130,000 = Fixed Manu of 60,000 + Fixed selling and adm of 70,000 The 13.00 unit cm margin is calculated by dividing sales and var costs by 50,000. 10.

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## This note was uploaded on 11/24/2010 for the course ACCT AC505 taught by Professor Greg during the Spring '10 term at DeVry Chicago.

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AC505 Practice Final Solutions[1] - Practice Final Answer...

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