Spring06_Midterm1-3_soln - Section I: Do on SCANTRON sheet....

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Section I: Do on SCANTRON sheet. ONLY SCANTRON circles graded (15 x 1=15 points). ===================================================================== 1. Baxter Company, which pays a 10% commission to its salespeople, reported sales revenues of $210,000 for the period just ended. If the commission is the only variable sales expense, and if fixed and variable sales expenses totaled $56,000, what would they total at sales of $168,000? A) $16,800. B) $35,000. C) $44,800. D) $51,800. E) some other amount. 2. The variable costs per unit are $4 when a company produces 10,000 units of product. What are the variable costs per unit when 8,000 units are produced? A) $4.00. B) $4.50. C) $5.00. D) $5.50. E) Some other amount. 3. Electricity costs that were incurred by a company's factory machines should be debited to which of the following? [Hint: Be careful. Think about this carefully.] A) Selling & Administrative Expense. B) Accounts Payable. C) Cash. D) Manufacturing Overhead. E) Work-in-Process Inventory. Version 3 Page 1
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influenced by cost. A recent study of product no. 519 revealed a traditionally-derived total cost of $1,019, a selling price of $1,850 based on that figure, and a newly computed activity-based total cost of $1,215. Which of the following statements is true? A) All other things being equal, the company should consider a drop in its sales price. B) The company may have been excessively competitive in the marketplace from a price perspective. C) Product no. 519 could be labeled as being overcosted by the firm's traditional costing procedures. D) If product no. 519 is undercosted by traditional accounting procedures, then all of the company's other products must be undercosted as well. E) Generally speaking, the activity-based cost figure is "less accurate" than the traditionally-derived cost figure. 5. The accounting records of Bronco Company revealed the following information: Raw materials used $ 60,000 Direct labor 125,000 Manufacturing overhead 360,000 Work-in-process inventory, 1/1 50,000 Finished-goods inventory, 1/1 189,000 Work-in-process inventory, 12/31 76,000 Finished-goods inventory, 12/31 140,000 Bronco's cost of goods manufactured is: A) $519,000. B) $522,000. C) $568,000. D) $571,000. E) some other amount. 6. When underapplied or overapplied manufacturing overhead is pro-rated, amounts can be assigned to which of the following accounts? A) Raw-Material Inventory, Manufacturing Overhead, and Direct Labor B) Work-in-process inventory, Raw Material Inventory, and Cost of Goods Sold C) Raw-Material Inventory, Finished Goods Inventory, and Cost of Goods Sold D) Raw-Material Inventory, Work-in Process Inventory, and Finished Goods Inventory E) None of the above. Version 3
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This note was uploaded on 03/18/2011 for the course MGMT 201 taught by Professor Rowe during the Spring '08 term at Purdue.

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Spring06_Midterm1-3_soln - Section I: Do on SCANTRON sheet....

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