Acc123Exam3Fall2004

Acc123Exam3Fall2004 - NAME COMPREHENSIVE FINAL EXAMINATION...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
NAME____________________ COMPREHENSIVE FINAL EXAMINATION Fall 2004 Summary of Exam Content and Point Allocation Question Type Point Value Multiple Choice (PageOut) 20 Short Answer Questions 15 25 Problem 2 – Intangible Assets 15 Problem 3 – Current Liabilities 10 Problem 3 – Long-term Debt 15 Total 100 GOOD LUCK! FINAL EXAM / B / FALL 2004 / PAGE 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
NAME____________________ Short Answer Questions (5 points each; choose 3 of 5; 15 points total) Instructions: Select and complete three of the following five short answer questions. Do not complete any more than three. If you complete more than three, only the first three will be graded and included in your exam score. 1. Lower of Cost or Market The December 31, 2003 inventory of Monet Company consisted of five products, for which certain information is provided in the table below. Using the lower of cost or market approach applied on an individual-item basis, compute the inventory valuation that should be reported for each product on December 31, 2003. Product Original Cost Replacement Cost Estimated Disposal Cost Expected Selling Price Normal Profit Margin A $75 $120 $30 $120 $20 B $80 $72 $20 $110 $22 C $80 $70 $35 $95 $25 D $50 $70 $40 $110 $18 E $36 $30 $35 $90 $20 2. Depletion In January 2003, Brahms Mining Corporation purchased a mineral mine for $8,400,000 with removable ore estimated by geological surveys at 6,000,000 tons. The property has an estimated value of $800,000 after the ore has been extracted. Brahms incurred $2,300,000 of development costs preparing the property for the extraction of ore. During 2003, 680,000 tons were removed and 500,000 tons were sold. Compute the total cost of goods sold for 2003. FINAL EXAM / B / FALL 2004 / PAGE 2
Background image of page 2
Short Answer Questions, Continued 3. Estimated Liability for Warranties In 2003, Vivaldi Corporation began selling a new line of products that carry a two-year warranty against defects. Based upon past experience with other products, the estimated warranty costs related to dollar sales are as follows: First year of warranty 2% Second year of warranty 5% Sales and actual warranty expenditures for 2003 and 2004 are presented below: 2003 2004 Sales $450,000 $600,000 Actual warranty expenditures 15,000 30,000 What is the estimated warranty liability at the end of 2004? 4. Interest Capitalization Botticelli Industries took out a $1,200,000, 8% construction loan on February 1, 2003, to build a new production facility. Construction started on April 1. Botticelli made payments to the general contractor of $400,000 on June 30, $900,000 on August 31, and $500,000 on December 31. Compute the amount of interest that Botticelli should capitalize for the year ending December 31, 2003. FINAL EXAM / B / FALL 2004 / PAGE 3
Background image of page 3

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

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 14

Acc123Exam3Fall2004 - NAME COMPREHENSIVE FINAL EXAMINATION...

This preview shows document pages 1 - 4. Sign up to view the full document.

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