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12
(TCO A) The variable portion of advertising costs is a Conversion YES... Period NO. Conversion YES .... Period YES. Conversion NO.... Period YES. Conversion NO.... Period NO.

1.

Question : Student Answer:

Instructor Explanation: Chapter 2

Points Received: Comments:

1937531917 0 MultipleChoice 1937531917

0 of 6

1 MultipleChoice

False 1

2.

Question :

(TCO A) The costs of staffing and operating the accounting department at Central Hospital would be considered by the Department of Surgery to be direct costs. sunk costs. incremental costs. None of the above

Student Answer:

Instructor Explanation: Chapter 2

Points Received: Comments:

1937531918 0 MultipleChoice 1937531918

0 of 6

5 MultipleChoice

False 5

3.

Question :

(TCO A) The cost of lubricants used to grease a production machine in a manufacturing company is an example of a(n): period cost. direct material cost.

Student Answer:

indirect manufacturing cost. direct labor cost.

None of the above Instructor Explanation: Chapter 2

Points Received: Comments:

1937531920 0 MultipleChoice 1937531920

6 of 6

9 MultipleChoice

True 9

4.

Question :

(TCO A) When the activity level is expected to increase within the relevant range, what effects would be anticipated with respect to each of the following? Fixed costs per unit increase and variable costs per unit increase. Fixed costs per unit decrease and variable costs per unit do not change. Fixed costs per unit do not change and per unit do not change.

Student Answer:

variable costs

Fixed costs per unit do not change and variable costs per unit increase.
Instructor Explanation: Chapter 5

Points Received: Comments:

1937531921 0 MultipleChoice 1937531921

6 of 6

11 MultipleChoice

True 11

5.

Question :

(TCO F) Which of the following statements is true? I. Overhead application may be made slowly as a job is worked on. II. Overhead application may be made in a single application at the time of completion of the job. III. Overhead application should be made to any job not completed at year end in order to properly value the work in

process inventory.
Student Answer:

Only statement I is true. Only statement II is true. Both statements I and II are true. Statements I, II, and III are all true.

Instructor Explanation: Chapter 3

Points Received: Comments:

1937531922 0 MultipleChoice 1937531922

6 of 6

15 MultipleChoice

True 15

6.

Question :

(TCO F) Which of the following statements about the process-costing system is incorrect? In a process-costing system, each processing department has a work-in-process account. In a process-costing system, equivalent units are separately computed for materials and for conversion costs. In a process-costing system, overhead can be under- or overapplied just as in job-order costing. In a process-costing system, materials costs are traced to units of products.

Student Answer:

Instructor Explanation: Chapter 4

Points Received: Comments:

1937531923 0 MultipleChoice 1937531923

0 of 6

18 MultipleChoice

False 18

7.

Question :

(TCO F) The weighted-average method of process costing differs from the FIFO method of process costing in that the weighted-average method can be used under any cost-flow assumption.

Student Answer:

does not require the use of predetermined overhead rates. keeps costs in the beginning inventory separate from current period costs. does not consider the degree of completion of units in the beginning work-in-process inventory when computing equivalent units of production.
Instructor Explanation: Chapter 4

Points Received: Comments:

1937531924 0 MultipleChoice 1937531924

6 of 6

21 MultipleChoice

True 21

8.

Question : Student Answer:

(TCO B) The contribution margin equals sales - expenses. sales - cost of goods sold. sales - variable costs. sales - fixed costs.

Instructor Explanation: Chapter 6

Points Received: Comments:

1937531925 0 MultipleChoice 1937531925

0 of 6

22 MultipleChoice

False 22

9.

Question :

(TCO B) Which of the following would not affect the break-even point? Total variable expenses Selling price per unit Variable expenses per unit Total fixed expenses

Student Answer:

Instructor Explanation: Chapter 6

Points Received: Comments:

1937531926 0 MultipleChoice 1937531926

0 of 6

26 MultipleChoice

False 26

10.

Question :

(TCO E) In an income statement prepared using the variable costing method, variable selling and administrative expenses would be used in the computation of the contribution margin. be used in the computation of net operating income but not in the computation of the contribution margin. be treated differently from variable manufacturing expenses. not be used.

Student Answer:

Instructor Explanation: Chapter 7

Points Received: Comments:

1937531927 0
Page:

6 of 6

MultipleChoice 1937531927

29 MultipleChoice

True 29

12
Question :

1.

(TCO A) The following data (in thousands of dollars) have been taken from the accounting records of Larden Corporation for the justcompleted year. Sales Purchases of raw materials Direct labor Manufacturing overhead Administrative expenses Selling expenses Raw materials inventory, beginning Raw materials inventory, ending Work-in-process inventory, beginning Work-in-process inventory, ending Finished goods inventory, beginning Finished goods inventory, ending $950 $170 $210 $220 $180 $140 $70 $80 $30 $20 $100 $70

Required: Prepare a Schedule of Cost of Goods Manufactured statement in the text box below.

Student Answer:

Direct Material: Raw Materials inventory, beginning.........$70 Add:Purchase of raw materials...............$170 Total of raw materials available...............$240 Deduct: Raw materials inventory ending.......$80 Raw materials used in production.................$160 Deduct:Indirect mater. included in man.ove..$140 Direct Labor..............................................$20 Man. overh. applied to work in process........$220 Total manufacturing cost............................$240 add:beg. work in process inv......................$30 $250 deduct:end work in process.......................$20 cost of goods manufactured ......................$230 Cost of goods sold finished goods begin inv...........................$100 add: cost of goods manuf.........................$0 Cost of goods available for sale.................$0 deduct finished goods inv ending................$70 unadjusted cost of goods sold $30 add:overapplied overhead Adjusted cost of goods sold.......................$30

Instructor Explanation:

Schedule of Cost of Goods Manufactured for the Larden Corp. Direct materials: Beginning raw materials inventory $70 Add: purchases raw material 170 Raw materials available for use 240 Deduct ending raw materials 80 Raw materials used in production 160 Direct labor 210 Manufacturing overhead 220 Total manufacturing costs 590 Add beginning work-in-process inventory 30 620 Deduct ending work-in-process inventory 20 Cost Of goods manufactured 600

Points Received: Comments:

10.5 of 15 You have calculation errors and all of the amounts listed in the schedule are not correct. Partial credit was given for the attempt.

1937531928 0

Short 1937531928

1 Short

False 1

2.

Question :

(TCO F) The Illinois Company manufactures a product that goes through three processing departments. Information relating to activity in the first department during June is given below. Percentage Completed Units Materials Conversion Work in process, June 1 150,000 75% 55% Work in process, Jun 30 145,000 85% 75% The department started 475,000 units into production during the month and transferred 480,000 completed units to the

next department. Required: Compute the equivalent units of production for the first department for June, assuming that the company uses the weighted-average method of accounting for units and costs.
Student Answer: Beginning inventory.....150,000 transfered in................475,000 total units accounted......625,000 completed ..................480,000 ending inventory...........145,000 total units.......................625,000 units completed...................475,000 units ending in inventory......145,000 equivalent units...................330,000

Instructor Explanation:

Equivalent Units Materials Conversion Units transferred to the next department 480,000 480,000 Ending work in process: Materials 145,000 x 85% 123,250 Conversion 145,000 x 75% 108,750 Equivalent units of production 603,250 588,750

Points Received: Comments:

10 of 20 The calculations, format and formulas are not correct. Mastery of this objective has not been shown in the reponse. I am giving partial credit for the attempt.

1937531931 0

Essay 1937531931

2 Essay

False 2

3.

Question :

(TCO B) Drake Company's income statement for the most recent year appears below. Sales (45,000 units) $1,350,000 Less: variable expenses 750,000 Contribution margin 600,000 Less: fixed expenses 375,000 Net operating income $225,000 Required: a. Calculate the unit contribution margin. b. Calculate the break-even point in dollars. c. If the company desires a net operating income of $290,000,

how many units must it sell?

Student Answer: a) sales-variable cost =$1,350,000-1,125,000=1,225,000 b.) Contribution margin = CM ratio x sales = 13.3 x 28000 = $373,333 Fixed expenses = CM - net operating income = $375,000-225,000=150,000 sales to break even = fixed expenses / CM ratio = $150,000/ 13.3 =$11278.1 c.) 1,350,000/45,000+252.2 290,000/252.2=1150.7 units

Instructor Explanation:

a. Total CM / total units = $600,000 /45,000 units = $13.33 per unit. b. Break-even = FC / CM per unit = $375,000 /$13.33 = 28,132 units x $30 per unit* = $843,960. * Sales at $1,350,000 /45,000units = $30 per unit. c. (FC + TP) / CM per unit = ($375,000 + $290,000) / $13.33 CM per unit = 49,887 units.

Points Received: Comments:

12.5 of 25 None of the amounts are correct. Partial credit is being given for the attempt.

1937531934 0

Essay 1937531934

6 Essay

False 6

4.

Question :

(TCO E) Maffei Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling price Units Units Units Units in beginning inventory produced sold in ending Inventory $ 175 0 9,500 8,000 1,500

Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and admin Fixed costs: Fixed manufacturing overhead Fixed selling and admin Required:

$ 55 $ 38 $2 $ 10

$ 300,000 $ 125,000

a. What is the unit product cost for the month under variable costing? b. What is the unit product cost for the month under absorption costing? c. Prepare an income statement for the month using the variable costing method. d. Prepare an income statement for the month using the absorption costing method.
Student Answer: Instructor a: Explanation:

Variable costing: Direct materials Direct labor Variable manufacturing overhead b: Absorption costing: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead c: Variable costing income statement: Sales Less variable expenses: Product costs (8,000 x $95) Variable selling and admin Contribution margin Less fixed expenses: Fixed manufacturing overhead Fixed selling and admin d: Absorption costing income statement: Sales Less cost of goods sold (8,000 x $126.58) Gross margin Selling and administrative expenses: Variable selling and admin Fixed selling and admin

$ $ $ $

55 38 2 95

$ 55 $ 38 $2 $ 31.58 $ 126.58 (300,000 / 9,500)

$ 1,400,000 $ 760,000 $ 80,000 $ 840,000 $ 560,000 $ 300,000 $ 125,000 $ 425,000 $135,000

$ 1,400,000 $ 1,012,640 $ 387,360 $ 80,000 $ 125,000 $ 205,000 $ 182,360

Points Received: Comments:

1937531947 0
Page:

0 of 30 No answer submitted.

Essay 1937531947

7 Essay

False 7

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