Accounting-Final Examination 2007

Accounting-Final Examination 2007 - ACC103-Management...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
ACC103-Management Accounting 1 (Semester 2/October 2007 Intake-Final Examination) SECTION A-Multiple Choice Questions (30 Marks) Answer All questions. Each question carries 1 mark. 1. A major advantage of using FIFO process-costing method is that: a. FIFO makes the unit cost calculations simpler b. In contrast with the weighted-average method , FIFO is considered GAAP c. FIFO provides managers with information about changes in the cost per unit from one period to the next. d. All of these answers are correct e. None of the above. 2. Advocates of throughput costing argue that: a. only direct materials are truly variable b. direct manufacturing labor is relatively fixed c. variable manufacturing costs are a cost of the period d. all manufacturing costs plus some design costs should be inventoried e. a, b and c are correct. 3. What type of cost is the result of an event that results in more than one product or service simultaneously? a. Byproduct cost b. Separable cost c. Main cost d. Joint cost e. None of the above. THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 4 THROUGH 5: Megan’s Pillows produces and sells a decorative pillow for $150.00 per unit. In the first month of operation, 2,000 units were produced and 1,750 units were sold. Actual fixed costs are the same as the amount budgeted for the month. Other information for the month includes: Variable manufacturing costs $ 40.00 per unit Variable marketing costs $ 6.00 per unit Fixed manufacturing costs $ 14.00 per unit Administrative expenses, all fixed $ 60,000 per month Ending inventories: Direct materials -0- WIP -0- Finished goods 250 units - 1 -
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
ACC103-Management Accounting 1 (Semester 2/October 2007 Intake-Final Examination) 4. What is cost of goods sold per unit using variable costing? a. $ 40 b. $ 46 c. $ 54 d. $ 60 e. $ 9 5. What is the difference in net profit between absorption costing and variable costing? a. $ 1,750 b. $ 3,500 c. $ 5,750 d. $ 7,500 e. None of the above. 6. Delaware has computed the following unit costs for the year just ended: Variable manufacturing cost $ 170 Fixed manufacturing cost 40 Variable selling and administrative cost 36 Fixed selling and administrative cost 22 Which of the following choices correctly depicts the per- unit cost of inventory under variable costing and absorption costing? a. Variable, $170; absorption, $ 210 b. Variable, $170; absorption, $ 232 c. Variable, $206; absorption, $ 210 d. Variable, $206; absorption, $ 232 e. Some other combination of figures not listed above. 7. Indiana Company incurred the following costs during the past year when planned production and actual production each totaled 20,000 units: Direct materials used $280,000 Direct labor 120,000 Variable manufacturing overhead 160,000 Fixed manufacturing overhead 100,000 Variable selling and administrative cost 60,000 Fixed selling and administrative cost 90,000 If Idiana uses absorption costing, the total inventoriable costs for the year would be: a. $400,000 b. $460,000 c. $560,000 d. $620,000 e. $660,000 - 2 -
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 10

Accounting-Final Examination 2007 - ACC103-Management...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online