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Unformatted text preview: M I D TER M STUDY GU IDE Please review problems worked in the Modules and Discussion Threads as well as the sample problem solutions posted in Doc sharing. (Do not study only the examples that I have provided below. There are many variations to these problems. I have provided examples so you will know what types of problems I am refer ring to.) 1. Calculate budgeted variable cost per unit, fixed cost per unit, total variable costs, and total fixed costs. (Chapter 1; 4 problems @ 5 points each.) Example: Smith’s Machines has the following costs in a period when production is 2,000 units: Direct materials, $8,500; direct labor (variable), $9,000; straight-line depreciation, $800; rent (same every month), $1,200; and other fixed costs, $1,000. Total fixed costs = $800 + $1200 + $1000 = $3000 Fixed cost per unit = $3000/2000 = $1.50 Total variable costs = $8500 + $9000 = $17,500 Variable cost per unit = $17,500/2000 = $8.75 2. Characteristics of managerial accounting. (Chapter 1; 5 points) See textbook pp. 7-9 as well as lecture and discussion threads. 3. Cost terms used in managerial accounting. (Chapter 1; 5 points) See textbook pp. 9-11 as well as lecture and discussion threads. 4. Goals of managerial accounting; principle of management by exception. (Chapter 1; 5 points) See text p. 7. 5. Calculate cost of goods manufactured. (Chapter 2; 5 points) Example: Data for the Shady Sales Company for the month of October is as follows: Beginning Ending Raw materials inventory $60,000 $70,000 Work-in-process inventory $85,000 $65,000 Finished goods inventory $100,000 $110,000 Raw materials purchased $75,000 Direct Labor $90,000 Factory Utilities 45,000 Administrative Salaries 35,000 Factory Rent $60,000 What is cost of goods manufactured? $60,000 - $70,000 + $85,000 - $65,000 + $75,000 + $90,000 + $45,000 + $60,000 = $280,000. 6. Calculate cost of job. (Chapter 2; 5 points) Example: The Tacoma Company allocates overhead based on a predetermined overhead rate of $8.00 per direct labor hour. Job B 689 required 6 tons of direct material at a cost of $900.00 per ton and took employees who earn $15.00 per hour a total of 90 hours to complete. total of 90 hours to complete....
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- Spring '10