Midterm Form A Solutions - Midterm SP 2010 A Key 1. If A...

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Midterm SP 2010 A Key 1. If A sells to B, and B holds title while goods are in transit, the goods were shipped ____ __ ? If C sells to D, and C maintains title until the goods arrive at D's door then the goods were shipped ? A. FOB shipping point, FOB destination B. FOB destination, FOB shipping point C. FOB destination, FOB destination D. FOB shipping point, FOB shipping point 2. When goods are sold on credit, revenue usually should be recognized at the date of A. receipt of the sales order B. passage of title from the seller to the buyer. C. receipt of the goods by the buyer. D. manufacture of the goods. E. cash collection of the sales price. 3. Dart Company incurred the following costs during 2010: Conversion Cost $750,000 Prime Cost $350,000 MOH $500,000 What was the amount of direct materials & direct labor used in 2010? A. Direct Materials, $350,000, Direct Labor $250,000 B. Direct Materials, $350,000, Direct Labor $250,000 C. Direct Materials, $250,000, Direct Labor $100,000 D. Direct Materials, $100,000, Direct Labor $250,000 E. Direct Materials, $600,000, Direct Labor $150,000 4. In our comprehensive problem, how was the balance in Musical Expression's bank account (i.e. cash account) reported for financial statement purposes? A. Current Asset, Balance Sheet B. Current Liability, Income Statement C. Current Asset, Income Statement D. Current Liability, Balance Sheet E. It was not required to be reported.
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5. Metro Corporation uses a predetermined overhead rate of $20 per machine hour. In deriving this figure, the company's accountant used: A. a denominator of budgeted machine hours for the current accounting period. B. a denominator of actual machine hours for the current accounting period. C. a denominator of actual machine hours for the previous accounting period. D. a numerator of budgeted machine hours for the current accounting period. E. a numerator of actual machine hours for the current accounting period. 6. The following data pertains to Lam Company's manufacturing operations for the month of April: 4/1 4/30 Raw Materials $20,000 $35,000 Work -In-Process $10,000 $50,000 Finished Goods $125,000 $75,000 MOH Clearing Account 0 0* Accounts Payable (Wolf) $40,000 $20,000 Additional information (for the month of April) : Actual Raw Materials Purchased $30,000 Actual Direct Labor dollars Incurred $25,000 Actual Hourly Direct Labor Rate $25 POHR $50 (per direct labor hour) Actual MOH Incurred $75,000 *This balance is after $25,000 of under-applied MOH was written off at the end of April. What was the amount of Direct Materials put in to production during April?
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Midterm Form A Solutions - Midterm SP 2010 A Key 1. If A...

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