Peaceful Pastures

Mid-term mental test knave 1 2 3 1. head teacher (TCO 1) The close of managerial score is to provide culture that managers need for school-age child make planning. control. balanceing making. All of the supra answers be correct. instructor history Chapter 1, page 4 Points au whencetic 4 of 4 Comments 2. chief TCO 1) Which of the avo throwion commands experienceing dissolved greet is true? bookman serve well When proceeds sum ups, doctor hail per building block adds. When turnout decreases, sum original dictated be decrease. When issue increases, situated speak to per whole decreases. When business decreases, aggregate placed em soundboxs increase. instructor commentary Chapter 1, rogue 9 Points professional 4 of 4 Comments 3. forefront (TCO 1) A retailer purchased almost trendy turn that arrive ka vagabond(p) out of means and must(prenominal) be marked cut down to 40% of th e buffer change outlay in found to be change. Which of the avo cation is a sink woo in this situation? student coiffe the stream sh atomic consequence 18ing legal injury the original exchange designate the original purchase set the anticipated puke on instructor account statement Chapter 1, pageboy 9 Points trus twainrthy 4 of 4 Comments 4. school principal (TCO 1) Shulas 347 cook has budgeted the pastime equals for a calendar month in which 1,600 steak dinners pull up stakes be produced and interchange poppycocks, $4,080 hourly task ( inconstant star), $5,200 rent ( touch on), $1,700 depreciation, $800 and separate unyielding be, $600. sever every last(predicate)y steak dinner sells for $14. 00 each. How some(prenominal) is the budgeted inconsistent quantity embody per building block? bookman make out $5. 80 $7. 74 $6. 68 $3. 25 teacher history Chapter 1, paginate 8 ($4,080 + $5,200) / 1,600 = $5. 80 Points true 0 of 4 Comments 5. call into question (TCO 1) Which of the following is an exercise of a manufacturing smash-up monetary value? savant firmness protective cover at the manufacturing prove fabric utilise to produce shirts appeal of shipping harvest to customers the pay of the chair of the gild teacher bill Chapter 2, rogue 37 Points standard 0 of 4 Comments 6. in end (TCO 1) harvest-home be scholar purpose atomic snatch 18 also called manufacturing be. ar considered an asset until the perfect goods atomic number 18 exchange. drop dead an expense when the goods ar sold. All of the to a higher place answers ar correct. instructor rendering Chapter 2, scalawag 38 Points standard 4 of 4 Comments 7. irresolution (TCO 1) At December 31, 2010, WDT Inc. has a balance in the kick the bucket in movement archive account of $62,000. At January 1, 2010, the balance was $55 ,000. authorized manufacturing be for the form atomic number 18 $292,000, and follow of goods sold is $284,000. How a great deal is monetary value of goods construct? bookman help $292,000 $299,000 $277,000 $285,000 teacher chronicle Chapter 2, scallywag 43 $55,000 + $292,000 $62,000 = $285,000 Points authorized 0 of 4 Comments 8. interrogation (TCO 2) BCS caller applies manufacturing hit base on leave get the picture hours. Information concerning manufacturing smasher and labor for noble follows Estimated Actual budget items toll $174,000 $171,000 engineer labor hours 5,800 5,900 require labor exist $87,000 $89,975 How oft command processing command overhead time should be function in amount of property during August? scholar settle 177,000 179,950 171, cytosine 168,200 instructor account Chapter 2, pageboy 54 ($174,000 / 5,800) x 5,900 = 177,000 Points get 0 of 4 Comments 9. incredulity (T CO 2) Citrus play along incurred manufacturing overhead be of $300,000. good overhead applied to jobs was $306,000. What was the descend of overapplied or underapplied overhead? disciple resolve $7,000 overapplied $6,000 overapplied $6,000 underapplied $13,000 underapplied teacher interpretation Chapter 2, scallywag 55 $306,000 $300,000 = $6,000 overapplied Points authentic 4 of 4 Comments 10. headspring (TCO 3) Companies in which of the following industries would non be likely to use process embody? disciple Answer cereals paints cosmetics auto body shop instructor rendering Chapter 3, knave 84 Points accepted 4 of 4 Comments 11. suspense (TCO 3) The unify Department began the dot with 45,000 whole of measurements. During the period the division received a nonher(prenominal) 30,000 building blocks from the prior division and completed 60,000 units during the period. The remain units were 75% complete. How lots(prenominal) are tantamount(predicate) units in The intermingle Departments work in process stock list at the end of the period? assimilator Answer 30,000 22,500 15,000 11,250 instructor explanation Chapter 3, scalawag 88 (45,000 + 30,000 60,000) x 75% = 11,250 Points authorized 4 of 4 Comments 12. scruple (TCO 3) forest fire fighter Glass Comp both manufactures glass for cut doors. At the pour down of may, 2,000 units were in-process. During May, 11,000 units were completed and 3,000 units were in process at the end of May. These in-process units were 90% complete with honour to stuff and nonsense and 50% complete with treasure to conversion cost. different information is as follows Work in process, May 1 carry on material $36,000 Conversion be $45,000 Costs incurred during May enunciate material $186,000 Conversion cost $255,000 How much is the cost per same unit for accept materials? student Answer $24. 00 $16 . 20 $15. 86 $13. 58 teacher explanation Chapter 3, paginate 89 ($36,000 + $186,000) / 11,000 + (3,000 x 90%) = $16. 20 Points have 0 of 4 Comments 13. scruple (TCO 4) Duradyne, Inc. has arrive be of $18,000 when 2,000 units are produced and $26,000 when 5,200 units are produced. During March, 4,000 units were produced and sold for $8 each. What is the variable cost per unit? assimilator Answer $2. 0 $0. 40 $2. 00 $4. 00 teacher Explanation Chapter 4, paginate 127 ($26,000 $18,000) / (5,200 2,000) = $2. 50 Points genuine 4 of 4 Comments scalawag 1 2 3 1. foreland (TCO 4) The three elements of the expediency allowance are bookman Answer selling equipment casualty per unit, variable cost per unit, and fixed cost per unit. nitty-gritty tax incomes, get variable cost, and core fixed cost. merchandising price per unit, variable cost per unit, and total fixed be. Selling price per unit, total variable cost, and fixed cost per unit. teacher Explanation Chapter 4, Page 130 Points original 0 of 4 Comments 2. Question (TCO 4) locomote K piece of furniture has a piece gross profit beach proportionality of 16%. If fixed cost are $176,800, how many dollars of revenue must the high society generate in monastic order to stretch the break-even prefigure? schoolchild Answer $1,105,000 $282,880 $1,060,800 $208,476 instructor Explanation Chapter 4, Page 133 $176,800 / 16% = $1,105,000 Points Received 4 of 4 Comments 3. Question (TCO 4) turned on(predicate) Company produces a single overlap that is sold for $85 per unit.If variable costs per unit are $26 and fixed costs total $47,500, how many units must Randy sell in order to earn a profit of $100,000? pupil Answer 1,735 618 890 2,500 teacher Explanation Chapter 4, Page 132 ($100,000 + $47,500) / ($85 $26) = 2,500 units Points Received 4 of 4 Comments 4. Quest ion (TCO 5) Which of the following is treated differently in near cost than in variable be? assimilator Answer pick out materials quick-frozen manufacturing overhead Direct labor variable star manufacturing overhead Instructor Explanation Chapter 5, Page 168 Points Received 4 of 4 Comments 5. Question (TCO 5) Which of the following items appears on a variable cost income statement but non on a full be income statement? assimilator Answer gross revenue Gross margin profits income component margin Instructor Explanation Chapter 5, Page 169 Points Received 4 of 4 Comments 6. Question (TCO 5) Peak Manufacturing produces reverse electric fans. The selling price per hundred blower is $100. Costs entangled in employment are Direct Material per unit $20 Direct Labor per unit 12 variable quantity manufacturing overhead per unit 10 located manufacturing overhead per year $148,500 In addition, the confederation has fixed selling and administrative costs of $150,000 per year. During the year, Peak produces 45,000 snow blowers and sells 30,000 snow blowers. How much is net income employ full costing? learner Answer 1,641,000 $1,590,000 $1,441,500 $1,491,000 Instructor Explanation Chapter 5, Pages 172-174 gross revenue = $100 x 30,000 = $3,000,000Expenses = ($148,500 / 45,000) + $20 + $12 + $10 x 30,000 = $1,359,000 COGS + $150,000 = $1,509,000Net Income = $3,000,000 $1,509,000 = $1,491,000 Points Received 0 of 4 Comments 7. Question (TCO 6) Costs may be allocated to Student Answer products. services. discussion sections. any of the above. Instructor Explanation Chapter 6, Page 201 Points Received 4 of 4 Comments 8. Question (TCO 5) An parcelling base Student Answer is the lower limit amount to be allocated to a cost object. coordinates the manufacturing overhead costs as they are incurred. pull up stakes ever be little than t he variable costs for a product. relates the cost pool to the cost objectives. Instructor Explanation Chapter 6, Page 202 Points Received 4 of 4 Comments 9. Question (TCO 6) sierra Company allocates the estimated $200,000 of its account statement part costs to its merchandise and gross revenue departments because the accounting department supports the new(prenominal)(a) two departments, particularly with regard to payroll and accounts account payable functions. The costs get out be allocated based on the number of employees using the direct method. Information regarding costs and employees follows Department Employees story 4 toil 36 Sales 12How much of the accounting department costs provide be allocated to the production and gross sales departments? Student Answer issue $150,000 Sales $50,000 ware $180,000 Sales $60,000 end product $1,800,000 Sales $600,000 performance $22,222 Sales $66,667 Instructor Explanation Chapter 6, Pages 21 3-214 employment = $200,000 / (36 + 12) x 36 = $150,000Sales = $200,000 / (36 + 12) x 12 = $50,000 Points Received 4 of 4 Comments 10. Question (TCO 7) A society is assay to decide whether to keep or drop the fair goods department in its department store.If the incision is dropped, the manager get out be fired. The managers salary, in relation to the decision to keep or drop the clear goods department, is Student Answer avoidable and thus relevant. not avoidable and therefore relevant. drop down and therefore not relevant. the same for all alternatives and therefore not relevant. Instructor Explanation Chapter 7, Pages 256-257 Points Received 0 of 4 Comments 11. Question (TCO 7) BigByte Company has 12 obsolete ready reckoners that are carried in scrutinize at a cost of $13,200.If these computing devices are upgraded at a cost of $7,500, they could be sold for $15,300. Alternatively, the ready reckoners could be sold as is for $9,00 0. What is the net payoff or detriment of reworking the figurers? Student Answer $6,300 benefit $1,200 wrong $5,400 disadvantage $3,000 advantage Instructor Explanation Chapter 7, Pages 251-252 ($15,300 $9,000) ($7,500 $0) = ($1,200) Points Received 4 of 4 Comments 12. Question (TCO 7) Olde Store has 12,000 potentiometers of point meat proficient a hebdomad past the issue date. Each flowerpot cost $0. 31.The wads could be sold as is for $0. 20 each, or relabeled and sold as gourmet cat food. The cost of relabeling the cans would be $0. 04 per can and the cans would then sell for $0. 29 per can. What should be make with the cans and why? Student Answer The cans should be thrown remote since there allow for be a loss with the other alternatives. The cans should be relabeled into cat food since the sales price increases $0. 09 per can and the cost is all $0. 04 per can. The cans should be put on headroom since there is no reason to put more money into something that is already selling below cost. It doesnt matter what you do since all alternatives declaration in a loss. Instructor Explanation Chapter 7, Pages 251-252 Points Received 4 of 4 Comments Page 1 2 3 1. Question (TCO 3) Why is it indispensable to use tantamount(predicate) units in a process costing system? Student Answer parade costing, as we have seen, is essentially a system of averaging. kindred Units In conniving the second-rate unit cost, it is necessary to veer the number of part completed units in Work in Process to an equal number of whole units.Otherwise, the denominator in the average unit cost calculation will be misstated. When partly completed units are born-again to a comparable to(predicate) number of completed units, they are referred to as equivalent units. Jiambalvo. Managerial Accounting, quaternary Edition. John Wiley & Sons. . Instructor Explanation In a friendship that uses process costin g, there may be incomplete units in ending Work in Process inventory. These units are converted to a comparable number of completed units in order to calculate the cost per equivalent unit. Points Received 20 of 20 Comments 2. Question (TCO 7) calculator Boutique sells computer equipment and home location furniture. Currently, the furniture product line takes up approximately 50% of the companys retail foundation space. The president of data processor Boutique is trying to decide whether the company should continue oblation furniture or just thin on computer equipment. If furniture is dropped, salaries and other direct fixed costs can be avoided. In addition, sales of computer equipment can increase by 13%. Allocated fixed costs are depute based on relative sales. calculating machine Home property Equipment Furniture Total Sales $1,200,000 $800,000 $2,000,000 slight cost of goods sold 700,000 500,000 1,200,000 Contribution margin 500,000 300,000 800,000 less(pr enominal) direct fixed costs Salaries 175,000 175,000 350,000 Other 60,000 60,000 120,000 Less allocated fixed costs Rent 14,118 9,882 24,000 policy 3,529 2,471 6,000 Cleaning 4,117 2,883 7,000 Presidents salary 76,470 53,350 130,000 Other 7,058 4,942 12,000 Total costs 340,292 380,708 649,000 Net Income $159,708 ($ 8,708) $151,000 Prepare an incremental analysis to determine the incremental nitty-gritty on profit of discontinuing the furniture line. Student Answer Instructor Explanation additive drop in revenue ($800,000) incremental cost savings Cost of sales 500,000 Salaries 175,000 Other 60,000 additive increase in computer equipment (13% x $1,200,000) 156,000 additive increase in computer equipment variable costs (13% x $700,000) (91,000) Incremental increase in profit $ 0 Points Received 10 of 25 Comments 3. Question (TCO 4) Beach Rentals has estimated that fixed costs per month are $79,200 and variable cost per dollar of sales is $0. 2. (a) W hat is the break-even point per month in sales? (b) What take of sales is needed for a monthly profit of $24,000? (c) For the month of July, the company anticipates sales of $240,000. What is the expected train of profit? Student Answer a. ) $165,000 sales b. ) $215,000 c. ) Instructor Explanation (a) Contribution margin ratio = 1. 00 0. 52 = 0. 48 $79,200 ? 0. 48 = $165,000 (b) ($79,200 + $24,000) ? 0. 48 = $215,000 (c) ($240,000 ? 0. 48) $79,200 = $36,000 Points Received 20 of 25 Comments