Exam1_Practice_Fall11

Exam1_Practice_Fall11 - University of Toledo BUAD 2050 -...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
BUAD 2050 - Fall 2011 Practice Exam – Midterm Exam 1 1 1. During its first year of operations, Beta Company paid $15,000 for direct material, $16,000 in wages for production workers, and $20,000 wages for administrative and sales personnel. Lease payments and utilities on the administrative building and production facilities amounted to $5,000 and $7,000, respectively. General, selling, and administrative expenses were $6,000. The company owns a delivery car and manufacturing equipment. The annual depreciation on the car is $ 1,000. The original cost of the equipment is $10,000 and has a salvage value of $2,000 after 4 years. The company produced 5,000 units and sold 4,000 units at a price of $15 a unit. The average cost to produce one unit is which of the following amounts? a. $8 b. $10 c. $9.20 d. $11.50 2. During 2010, Eddy Co. paid $16,000 for direct material, $17,000 in wages for production workers, and $24,000 in wages for sales personnel. Lease payments and utilities on the production facilities amounted to $7,000. General, selling, and administrative expenses were $6,000. The company owns a manufacturing equipment. The original cost of the equipment is $30,000 and has a salvage value of $5,000 after 5 years. Depreciation on sales car equals $6,000. The company produced 5,000 units and sold 3,000 units at a price of $10 a unit. The cost of goods sold is which of the following amounts? A. $64,000 B. $32,000 C. $27,000 D. $45,000 3. What is the effect on the financial statements of recording a $10,000 payment for sales personnel in cash? 4. What is the effect on the financial statements of recording a $100 purchase of raw materials? Assets = Liab. + Equity Rev. - Exp. = Net Inc. A) +- / n/a n/a n/a + - B) - n/a - n/a + - C) - n/a - n/a n/a n/a D) + / - n/a n/a n/a n/a n/a Assets = Liab. + Equity
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 6

Exam1_Practice_Fall11 - University of Toledo BUAD 2050 -...

This preview shows document pages 1 - 2. Sign up to view the full document.

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