Categories
ACCT 505 Final Exam (New) All 3 Set
$30.00

ACCT 505 Final Exam (New) All 3 Set

This Tutorial was purchased 6 times & rated A+ by student like you.

 

This Tutorial contains following Attachments

  • ACCT 505 Final Exam (New) All 3 Set.rar

Score 248/250

 

Multiple Choice 2

Short 2

Essay 7

 

 

Question 1 : (TCO E) Designing a new product is a(n)

 

2. Question : (TCO G) Given the following data, what would ROI be?

Sales $70,000

Net operating income $10,000

Contribution margin $20,000

Average operating assets $50,000

Stockholder's equity $25,000

 

 

 

1. Question : (TCO C) Longiotti Corporation produces and sells a single product. Data

concerning that product appear below.

Selling price per unit $375.00

Variable expense per unit $144.00

Fixed expense per month $1,686,300

Required:

Determine the monthly breakeven in units or dollar sales. Show your work!

 

 

2. Question : (TCO B) Maverick Corporation uses the weighted-average method in its

process costing system. Data concerning the first processing department for

the most recent month are listed below.

Work in process, beginning:

Units in beginning work in process inventory 400

Materials costs $6,900

Conversion costs $2,500

Percent complete for materials 80%

Percent complete for conversion 15%

Units started into production during the month 6,000

Units transferred to the next department during the month 5,600

Materials costs added during the month $112,500

Conversion costs added during the month $210,300

1. Question : (TCO D) Topple Company produces a single product. Operating data for the

company and its absorption costing income statement for the last year are

presented below.

Units in beginning inventory 2,000

Units produced 9,000

Units sold 10,000

Sales $100,000

Less cost of goods sold:

Beginning inventory 12,000

Add cost of goods manufactured 54,000

Goods available for sale 66,000

Less ending inventory 6,000

Cost of goods sold 60,000

Gross margin 40,000

Less selling and admin. expenses 28,000

Net operating income $12,000

 

 

2. Question : (TCO I) (Ignore income taxes in this problem.) Bill Anders retires in 8 years.

He has $650,000 to invest and is considering a franchise for a fast-food

outlet. He would have to purchase equipment costing $500,000 to equip the

outlet and invest an additional $150,000 for inventories and other working

capital needs. Other outlets in the fast-food chain have an annual net cash

inflow of about $160,000. Mr. Anders would close the outlet in 8 years. He

estimates that the equipment could be sold at that time for about 10% of its

original cost. Mr. Anders' required rate of return is 16%.

Required:

Part A: What is the investment's net present value when the discount rate is

16%?

Part B: Refer to your calculations. Is this an acceptable investment? Why or

why not?

 

 

3. Question : (TCO A) The following data (in thousands of dollars) have been taken from the accounting records of the Maroon Corporation for the just-completed

year.

Sales 1,300

Raw materials inventory, beginning 25

Raw materials inventory, ending 30

Purchases of raw materials 250

Direct labor 350

Manufacturing overhead 500

Administrative expenses 300

Selling expenses 250

Work in process inventory, beginning 150

Work in process inventory, ending 100

Finished goods inventory, beginning 80

Finished goods inventory, ending 110

Use the above data to prepare (in thousands of dollars) a schedule of Cost

of Goods Manufactured and a Schedule of Cost of Goods Sold for the year.

In addition, what is the impact on the financial statements if the ending

finished goods inventory is overstated or understated?

 

 

4. Question : (TCO F) Walker Corporation is preparing its cash budget for November. The

budgeted beginning cash balance is $43,000. Budgeted cash receipts total $117,000 and budgeted cash disbursements total $122,000. The desired

ending cash balance is $55,000. The company can borrow up to $100,000 at

any time from a local bank, with interest not due until the following month.

Required:

Prepare the company's cash budget for November in good form. Make sure

to indicate what borrowing, if any, would be needed to attain the desired

ending cash balance

 

 

5. Question : (TCO F) Bella Lugosi Holdings, Inc. (BLH), has collected the following

operating information for its current month's activity. Using this information,

prepare a flexible budget analysis to determine how well BLH performed in

terms of cost control.

Static Budget

Activity level (in units) 5,250 5,178

Variable costs:

Indirect materials $24,182 $23,476

Utilities $22,356 $22,674

Fixed costs:

Administration $63,450 $65,500

Rent $65,317 $63,904

6. Question : (TCO H) Lindon Company uses 7,500 units of Part Y each year as a

component in the assembly of one of its products. The company is presently

producing Part Y internally at a total cost of $119,000 as follows.

Direct

materials

$26,000

Direct labor 28,000

Variable

manufacturing

overhead

20,000

Fixed

manufacturing

overhead

45,000

Total costs $119,000

An outside supplier has offered to provide Part Y at a price of $12 per unit. If

Lindon stops producing the part internally, one third of the fixed

manufacturing overhead would be eliminated.

Required: Prepare a make-or-buy analysis showing the annual advantage or

disadvantage of accepting the outside supplier's offer. Please state clearly

whether the part should be made or bought and share your work.

 

 

7. Question : (TCO B) Sandler Corporation bases its predetermined overhead rate on the

estimated machine hours for the upcoming year. Data for the upcoming year

appear below.

Estimated machine hours 75,000

Estimated variable manufacturing

overhead $4.50 per machine hour

Estimated total fixed manufacturing

overhead $825,000

The actual machine hours for the year turned out to be 77,000.

Required:

Compute the company's predetermined overhead rate.

 

 

Set 2

 

1. (TCO C) Madlem, Inc., produces and sells a single product whose selling price is $120.00 per unit and whose variable expense is $46.20 per unit. The company's fixed expense is $405,900 per month.

 

Required: Determine the monthly breakeven in either unit or total dollar sales. Show your work! (Points : 25)

 

 

Question 2.2. (TCO B) Industrial Supply Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below.

Work in process, beginning:   

  Units in beginning work in process inventory          400

  Materials costs          $6,900

  Conversion costs       $2,500

  Percent complete for materials          80%

  Percent complete for conversion       15%

  Units started into production during the month       6,000

  Units transferred to the next department during the month 5,200

  Materials costs added during the month      $112,500

  Conversion costs added during the month   $210,300

           

           

Ending work in process:        

  Units in ending work-in-process inventory   1,200

  Percentage complete for materials    75%

  Percentage complete for conversion 30%

 

Required: Calculate the equivalent units for conversion for the month in the first processing department. (Points : 25)

 

 

 

Question 1.1. (TCO D) The following absorption costing income statement and additional data are available from the accounting records of Bernon Co. for the month ended May 31, XXXX. During the accounting period, 17,000 units were manufactured and sold at a price of $60 per unit. There were no beginning inventories.

Bernon Co.

Absorption Costing Income Statement

for the Month Ended May 31, XXXX

Sales (17,000 @ $60)  $1,020,000     

Cost of goods sold          612,000      

Gross profit     $ 408,000       

Selling and administrative expenses        66,000       

Income from operations          $ 342,000       

 

Additional Information:

Cost     Total Cost       Number of Units         Unit Cost       

Manufacturing costs:                                     

  Variable         $442,000         17,000 $26     

  Fixed   170,000         17,000   10     

  Total  $612,000                     $36     

                                               

Selling and administrative expenses: 

  Variable ($2 per unit sold)    $34,000

  Fixed   32,000

  Total  $66,000

                                                           

 

Required: Prepare a new income statement for the year using variable costing. Comment on the differences, if any, between the absorption costing and the variable costing income statements. (Points : 30)

 

 

 

Question 2.2. (TCO I) (Ignore income taxes in this problem.) Simpson Beauty Products Corporation is considering the production of a new conditioning shampoo that will require the purchase of new mixing machinery. The machinery will cost $700,000, is expected to have a useful life of 10 years, and is expected to have a salvage value of $70,000 at the end of 10 years. The machinery will also need a $45,000 overhaul at the end of Year 5. A $60,000 increase in working capital will be needed for this investment project. The working capital will be released at the end of the 10 years. The new shampoo is expected to generate net cash inflows of $150,000 per year for each of the 10 years. Simpson's discount rate is 18%.

Items   Year(s)            Amount           18% Factor      Present Value 

Cost of machinery       Now    ($700,000)       1          ($700,000)      

Working capital increase         Now    ($60,000)         1          ($60,000)        

Annual cash inflows   1–10    $150,000         4.494   674,100          

Overhaul         5          ($45,000)         0.437   ($19,665)        

Salvage value  10        $70,000           0.191   13,370

Working capital release           10        $60,000           0.191   11,460

Net present value                                ($80,735)

 

Required:

(a) What is the net present value of this investment opportunity?

(b) Based on your answer to (a) above, should Simpson go ahead with the new conditioning shampoo? (Points : 30)

 

 

 

Question 3.3. (TCO A) The following data (in thousands of dollars) have been taken from the accounting records of the Maroon Corporation for the just-completed year.

Sales    1,700

Raw materials inventory, beginning   50

Raw materials inventory, ending        25

Purchases of raw materials      210

Direct labor     360

Manufacturing overhead         330

Administrative expenses         400

Selling expenses          200

Work-in-process inventory, beginning            120

Work-in-process inventory, ending     150

Finished goods inventory, beginning  80

Finished goods inventory, ending      120

 

 

Use the above data to prepare (in thousands of dollars) a schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold for the year. In addition, what is the impact on the financial statements if the ending finished goods inventory is overstated or understated? (Points : 25)

 

 

 

Question 4.4. (TCO F) Walker Corporation is preparing its cash budget for November. The budgeted beginning cash balance is $43,000. Budgeted cash receipts total $117,000 and budgeted cash disbursements total $122,000. The desired ending cash balance is $55,000. The company can borrow up to $100,000 at any time from a local bank, with interest not due until the following month.

 

Required:

 

Prepare the company's cash budget for November in good form. Make sure to indicate what borrowing, if any, would be needed to attain the desired ending cash balance(Points : 25)

 

 

 

Question 5.5. (TCO F) The following overhead data are for a department of a large company.

            Actual Costs Incurred Static Budget

Activity level (in units)           360      340

                       

Variable costs:            

     Indirect materials   $4,182 $4,148

     Electricity   $2,536 $2,414

Fixed costs:                

     Administration       $6,540 $6,500

     Rent           $6,310 $6,400

 

Required: Construct a flexible budget performance report that would be useful in assessing how well costs were controlled in this department. (Points : 25)

 

 

 

Question 6.6. (TCO H) McMullen Co. uses 10,000 units of Part X each year as a component in the assembly of one of its products. The company is presently producing Part X internally at a total cost of $125,000 as follows.

 

Direct materials           $40,000

Direct labor     30,000

Variable manufacturing overhead       25,000

Fixed manufacturing overhead           30,000

Total costs       $125,000

 

An outside supplier has offered to provide Part X at a price of $10 per unit. If McMullen stops producing the part internally, one third of the fixed manufacturing overhead would be eliminated.

 

Required: Prepare a make-or-buy analysis showing the annual advantage or disadvantage of accepting the outside supplier's offer. Please state clearly whether the part should be made or bought and share your work. (Points : 30)

 

 

 

Question 7.7. (TCO B) Buckhorn Corporation bases its predetermined overhead rate on the estimated machine hours for the upcoming year. Data for the upcoming year appear below.

Estimated machine hours        37,000

Estimated variable manufacturing overhead  $7.77 per machine hour

Estimated total fixed manufacturing overhead          $888,000

 

The actual machine hours for the year turned out to be 35,000.

 

Required: Compute the company's predetermined overhead rate. (Points : 25)

 

 

 

Set 3

(TCO E) Preparing purchase orders is a(n) (Points : 5)

batch-level activity.

product-level activity.

unit-level activity.

organization sustaining activity.

 

 

2. (TCO G) Given the following data, what would ROI be?

Sales    $70,000

Net operating income $10,000

Contribution margin    $20,000

Average operating assets        $50,000

Stockholder's equity   $25,000

(Points : 5)

        28.6%

        20.0%

        40.0%

        50.0%

 

 

3. (TCO C) Heckaman Corporation produces and sells a single product. Data concerning that product appear below.

Selling price per unit   $115.00

Variable expense per unit        $56.35

Fixed expense per month        $299,115

 

 

4. TCO B) Industrial Supply Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below.

Work in process, beginning:   

  Units in beginning work in process inventory          400

  Materials costs          $6,900

  Conversion costs       $2,500

  Percent complete for materials          80%

  Percent complete for conversion       15%

 

 

 

 

5. (TCO D) Topple Company produces a single product. Operating data for the company and its absorption costing income statement for the last year are presented below.

Units in beginning inventory  0

Units produced           9,000

Units sold        7,000

Sales    $100,000

 

 

Variable manufacturing costs are $4 per unit. Fixed manufacturing overhead totals $18,000 for the year. The fixed manufacturing overhead was applied at a rate of $2 per unit. Variable selling and administrative expenses were $1 per unit sold.

 

Required: Prepare a new income statement for the year using variable costing. Comment on the differences between the absorption costing and the variable costing income statements. (Points : 30)

 

 

6. (TCO I) (Ignore income taxes in this problem.) Simpson Beauty Products Corporation is considering the production of a new conditioning shampoo that will require the purchase of new mixing machinery. The machinery will cost $700,000, is

Required:

Part A: What is the net present value of this investment opportunity?

Part B: Based on your answer to (a) above, should Simpson go ahead with the new conditioning shampoo? (Points : 30)

 

 

PART B:

Simpson should not go ahead and purchase the shampoo machine since the NPV is negative.

7. (TCO A) The following data (in thousands of dollars) have been taken from the accounting records of Karmana Corporation for the just-completed year.

 

 

8. (TCO F) Matuseski Corporation is preparing its cash budget for October. The budgeted beginning cash balance is $54,000. Budgeted cash receipts total $127,000 and budgeted cash disbursements total $99,000. The desired ending cash balance is $100,000. The company can borrow up to $150,000 at any time from a local bank, with interest not due until the following month.

 

Required: Prepare the company's cash budget for October in good form. Make sure to indicate what borrowing, if any, would be needed to attain the desired ending cash balance. (Points : 25)

 

9. (TCO F) Bella Lugosi Holdings, Inc. (BLH), has collected the following operating information for its current month's activity. Using this information, prepare a flexible budget analysis to determine how well BLH performed in terms of cost control.

           

 

Actual Costs Incurred Static Budget

Activity level (in units)           5,250   5,178

                       

Variable costs:            

     Indirect materials   $24,182           $23,476

     Utilities      $22,356           $22,674

Fixed costs:                

     Administration       $63,450           $65,500

     Rent           $65,317           $63,904

(Points : 25)

 

 

 

10.  (TCO H) Lindon Company uses 10,000 units of Part Y each year as a component in the assembly of one of its products. The company is presently producing Part Y internally at a total cost of $100,000 as follows.

Direct materials............................................... $20,000

Direct labor...................................................... 40,000

Variable manufacturing overhead......................   16,000

Fixed manufacturing overhead.......................   

24,000

Total costs.......................................................100,000

An outside supplier has offered to provide Part Y at a price of $10 per unit. If Lindon stops producing the part internally, one third of the fixed manufacturing overhead would be eliminated.

 

 

11. (TCO B) Wahr Corporation bases its predetermined overhead rate on the estimated labor hours for the upcoming year. At the beginning of the most recently completed year, the company estimated the labor hours for the upcoming year at 35,000. The estimated variable manufacturing overhead was $7.25 per labor hour and the estimated total fixed manufacturing overhead was $585,000. The actual labor hours for the year turned out to be 33,000.

Write a review

Order Id


Order Id will be kept Confidential
Your Name:


Your Review:
Rating:   A   B   C   D   F  

Enter the code in the box below:



Related Tutorials
$12.00

This Tutorial was purchased 25 times & rated A+ by student like you.

ACCT 505 Course Project 2 Hampton Company     Capital Budgeting Decision   Hampton Company: The production department has been investigating possible ways to trim total production costs. One possibility currently being examined is to make the cans instead of pur..
$12.00

This Tutorial was purchased 8 times & rated A+ by student like you.

Question : (TCO D) Return on investment (ROI) is equal to the margin multiplied by 2. Question : (TCO D) For which of the following decisions are opportunity costs relevant? The decision to make or buy a needed part The desision to keep or drop a product line (A) Y..
$10.00

This Tutorial was purchased 29 times & rated A+ by student like you.

COURSE PROJECT 1 INSTRUCTIONS You have just been contracted as a budget consultant by LBJ Company, a distributor of bracelets to various retail outlets across the country. The company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of c..
$12.00

This Tutorial was purchased 12 times & rated A by student like you.

1. Question : (TCO A) Wages paid to an assembly line worker in a factory are a 2. Question : (TCO A) A cost incurred in the past that is not relevant to any current decision is classified as a(n) 3. Question : (TCO A) Depreciation of office buildings and office equ..
$10.00

This Tutorial was purchased 6 times & rated A+ by student like you.

Springfield Express is a luxury passenger carrier in Texas. All seats are first class, and the following data are available: Number of seats per passenger train car 90 Average load factor (percentage of seats filled) 70% Average full passenger fare $160 Average variabl..
$12.00

This Tutorial was purchased 5 times & rated A by student like you.

1. Question : (TCO F) For which situation(s) below would an organization be more likely to use a job-order costing system of accumulating product costs rather than a process costing system? 2. Question : (TCO F) Process costing would be appropriate for each of the following ex..
$9.00

This Tutorial was purchased 5 times & rated A+ by student like you.

Top Switch Inc. designs and manufactures switches used in telecommunications. Serious flooding throughout the state of Tennessee affected Top Switch’s facilities. Inventory was completely ruined, and the company’s computer system, including all accounting records, was destroyed. Before the u..
$18.00

This Tutorial was purchased 7 times & rated A+ by student like you.

Week 1DQ 1 Cost Terms, Classifications, and Behavior Week 1DQ 2 Research and Application Week 2DQ 1 Job Order and Process Costing Systems Week 2DQ 2 Research and Application Week 3DQ 1 Variable Costing and CVP Concepts Week 3DQ 2 Research and Application Week 4DQ 1 Budgeti..
$12.00

This Tutorial was purchased 18 times & rated A+ by student like you.

ACCT 505 Final Exam  ..
$65.00

This Tutorial was purchased 12 times & rated A by student like you.

ACCT 505 Week 1-7 All Discussion Questions ACCT 505 Week 1 Case Study ACCT 505 Week 2 Quiz Job Order and Process Costing Systems ACCT 505 Week 2 Quiz Set 2 ACCT 505 Week 3 Case Study II ACCT 505 Week 4 Midterm Exam ACCT 505 Week 5 Course Project 1 LBJ Company (New) ACC..
$12.00

This Tutorial was purchased 7 times & rated A+ by student like you.

Multiple Choice          10        9 Essay   4   Question 1.      Question :        (TCO A) The variable portion of advertising co..
$12.00

This Tutorial was purchased 4 times & rated A+ by student like you.

Score 144/150 Multiple Choice 10Essay 4       1. (TCO A)  Direct material cost is a part of (Points : 6)          Conversion Cost NO.... Prime Cost NO.          Conversion C..
$15.00

This Tutorial was purchased 5 times & rated A by student like you.

(TCO E) Preparing purchase orders is a(n) (Points : 5) batch-level activity. product-level activity. unit-level activity. organization sustaining activity.     2. (TCO G) Given the following data, what would ROI be? Sales    $70,000 Net oper..
$15.00

This Tutorial was purchased 2 times & rated A+ by student like you.

Set 2   1. (TCO C) Madlem, Inc., produces and sells a single product whose selling price is $120.00 per unit and whose variable expense is $46.20 per unit. The company's fixed expense is $405,900 per month.   Required: Determine the monthly breakeven in either unit or to..
$15.00

This Tutorial was purchased 5 times & rated A+ by student like you.

Score 248/250 Multiple Choice 2 Short 2 Essay 7     Question 1 : (TCO E) Designing a new product is a(n)   2. Question : (TCO G) Given the following data, what would ROI be? Sales $70,000 Net operating income $10,000 Contribution margi..
$5.00

This Tutorial was purchased 1 times & rated A+ by student like you.

Multiple Choice          3 Short   5                 Question 1.      Question :        (TCO D) R..
$6.00

This Tutorial was purchased 6 times & rated A+ by student like you.

Essay 4 Multiple Choice 6       Question 1.      Question :        (TCO B) Assume there is no beginning work in process inventory and the ending work in process inventory is 100% complete with respect ..
$15.00

This Tutorial was purchased 15 times & rated A+ by student like you.

CASE 4–20 Ethics and the Manager, Understanding the Impact of Percentage Completion on Profit—Weighted-Average Method [Course Objective B] Gary Stevens and Mary James are production managers in the Consumer Electronics Division of General Electronics Company, which has several dozen plants sc..
$25.00

This Tutorial was purchased 5 times & rated A by student like you.

This Tutorial contains 6 Sets of Midterm Exam     1. (TCO A)  Direct material cost is a part of (Points : 6)          Conversion Cost NO.... Prime Cost NO.          Conversion Cost YES.... Prime Cost NO. &nbs..
$12.00

This Tutorial was purchased 4 times & rated A+ by student like you.

ACCT505 – Managerial Accounting Team Case Study 3 – Week 6 Balanced Scorecard Case  (Course Objective G) Many companies are using the Balanced Scorecard System to assist in their performance management. According to Garrison, Noreen, and Brewer (2015) a balanced scorecard “co..
$12.00

This Tutorial was purchased 25 times & rated A by student like you.

CASE 3–29 Ethics and the Manager [Course Objective B] Terri Ronsin had recently been transferred to the Home Security Systems Division of National Home Products. Shortly after taking over her new position as divisional controller, she was asked to develop the division’s predetermined overhead rat..
manju devi somani (ACCT505) © 2017 All Rights Reserved.Powered by:Ash Tutorial