ACCT 346 Week 4 Midterm 2
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This 0 page Study Guide was uploaded by kingmi Notetaker on Thursday November 19, 2015. The Study Guide belongs to at Richmond Community College taught by in Spring 2015. Since its upload, it has received 38 views.
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Date Created: 11/19/15
These are the automatically computed Date Taken results of your exam Grades for essay Time Spent questions and comments from your P R 170170 1000 instructor are in the quotDetailsquot section below o39nts eCe39Ved39 A Question Type Of Questions Correct Multiple Choice 25 25 Short 1 NA Essay 2 NA Page 1 Question Student Answer Instructor Explanation Points Received Comments 2 Question Student Answer Instructor Explanation Points Received Comments 3 Question TCO 1 Which of the following is nota difference between nancial accounting and managerial accounting Financial accounting is primarily concerned with 1 reporting the past while managerial accounting is more concerned with the future Managerial accounting uses more nonmonetary 1 information than is used in nancial accounting Managerial accounting is primarily concerned with is providing information for external users while nancial accounting is concerned with internal users Financial accounting must follow GAAP while managerial 1 accounting is not required to follow GAAP Chapter 1 Page 7 4of4 TCO 1 Which of the following statements regarding xed costs is true When production increases xed cost per unit 1 increases When production decreases total xed costs decrease 1 When production increases xed cost per unit is decreases When production decreases total xed costs increase 1 Chapter 1 Page 9 4of4 TCO 1 You own a car and are trying to decide whether or Page 1 Question Student Answer Instructor Explanation Points Received Comments 2 Question Student Answer Instructor Explanation Points Received Comments TCO 4 Which of the following will have no effect on the breakeven point in units The selling price increases The variable cost per unit increases The sales volume increases Total xed costs increase Chapter 4 Page 131 r39 4 Circle K Furniture has a contribution margin ratio of 1070 If xed costs are 176800 how many dollars of revenue must the company generate in order to reach the breakeven point 1105000 282880 1060800 208476 Chapter 4 Page 133 176800 16 1105000 4of4 3 4 Question Student Answer anquot Instructor Explanation t TCO 4 Randy Company produces a single product that is sit for 85 per unit If variable costs per unit are 26 and xed costs total 47500 how many units must Randy sell in order to earn a pro t of 100000 1735 618 890 2500 Iii Chapter 4 Page 132 100000 47500 85 26 2500 units Points Received Comments Question Student Answer Instructor Explanation Points Received Comments 4of4 t r 5 In full costing when does xed manufacturing overhead become an expense fquot In the period when other xed costs are at the highest It level In the period when the product is sold ii In the period when the expense is incurred When the controller decides that the expense should be recognized Chapter 5 Page 168 4of4 5 Question Student Answer Instructor Explanation Points Received Comments 6 Question Student Answer TCO 5 Variable costing income is a function of an an t Units sold only Units produced only Both units sold and units produced Neither units sold nor units produced I Chapter 5 Page 169 4of4 TCO 5 Peak Manufacturing produces snow blowers The selling price per snow blower is 100 Costs involved in production are 1 Direct Material per unit Direct Labor per unit Variable manufacturing overhead per unit Fixed manufacturing overhead per year 148500 In addition the company has xed selling and administrative costs of 150000 per year During the year Peak produces 45000 snow blowers and sells 30000 snow blowers How much xed manufacturing overhead is in ending inventory under full costing i ti 0 49500 7 8 Instructor Explanation Points Received Comments Question Student Answer Instructor Explanation Points Received Comments Question Student Answer It It 148500 f39 99000 f39 Chapter 5 Pages 172174 148500 45000 X 45000 30000 49500 4of4 TCO 6 Which of the following is nota reason that If panies allocate costs 5 To calculate the full cost of products for nancial t rr39 lrting purposes To discourage managers from using external suppliers To reduce the frivolous use of company resources To provide information needed by managers to make f appropriate decisions Chapter 6 Page 198 4of4 TCO 6 Which of the following statements about cost pools is not true The costs in each of the cost pools should be It homogeneous or similar Managers must make a costbene t decision when r determining how many cost pools are appropriate Only four different kinds of costs may be included in a 3 single cost pool More cost pools usually provide more accurate in information but are more expensive Instructor Explanation Chairi r 6 Page 202 in Points Received 4 of 4 Comments q in Question TCO 6 The building maintenance department forJones Manufacturing Company budgets annual costs of 4200000 based on the expected operating level for the coming year The costs are allocated to two production departments The following data relate to the potential allocation bases Production Dept 1 Production Dept 2 Square footage 15000 45000 Direct labor hours 25000 50000 in If Iones assigns costs to departments based on square ft age how much total costs will be allocated to Production Department 1 i Student Answer 1400000 r a 1050000 i 1575000 1 2100000 in Instructor Chapter 6 Pages 213214 Explanation 10 11 Points Received Comments Question Student Answer Instructor Explanation Points Received Comments Question Student Answer Cost per square foot 4200000 15000 45000 70 Production Department Cost 70 x 15000 1050000 4of4 TCO 7 A company is currently making a necessary component in house the company is producing the component for its own use The company has received an offer to buy the component from an outside supplier A machine is being rented to make the component If the company were to buy the component the machine would no longer be rented The rent on the machine in relation to the decision to make or buy the component is sunk and therefore not relevant in avoidable and therefore not relevant 1 avoidable and therefore relevant ri unavoidable and therefore relevant 1 Chapter 7 Pages 252254 4of4 TCO 7 Ricket Company has 1500 obsolete calculators that are carried in inventory at a cost of 13200 If these calculators are upgraded at a cost of 9500 they could be sold for 22500 Alternatively the calculators could be sold quotas isquot for 9000 What is the net advantage or disadvantage of reworking the calculators 13000 advantage 1 4000 advantage 1 Instructor Explanation Points Received Comments 12 Question Student Answer Instructor Explanation Points Received Comments Page Page 9200 disadvantage 1 200 disadvantage 1 Chapter 7 Pages 251252 22500 9000 9500 0 4000 4of4 TCO 7 YXZ Company s market for the Model 55 has changed signi cantly and YXZ has had to drop the price per unit from 275 to 135 There are some units in the work in process inventory that have costs of 160 per unit associated with them YXZ could sell these units in their current state for 100 each It will cost YXZ 10 per unit to complete these units so that they can be sold for 135 each When the incremental revenues and expenses are analyzed what is the nancial impact in 25 per unit pro t if the units are completed 125 per unit if the units are completed 2 65 per unit loss if the units are completed 1 150 per unit loss if the units are completed 1 Chapter 7 Pages 251252 135 100 10 0 25 4of4 l L l loo I L IN 00 1 2 Question Student Answer Instructor Explanation Points Received Comments Question TCO 3 What are transferredin costs Which departments will never have transferredin costs Transferredin costs are those costs that are incurred in one department then transferred to the next processing departmentThe department where processing begins would never have transferredin costs Transferredin costs are costs incurred in one processing department that are transferred to the next processing department The department where the processing begins will never have transferredin costs 20 of 20 right TCO 7 Computer Boutique sells computer equipment and home of ce furniture Currently the furniture product line takes up approximately 50 of the company39s retail oor space The president of Computer Boutique is trying to decide whether the company should continue offering furniture orjust concentrate on computer equipment If furniture is dropped salaries and other direct xed costs can be avoided In addition sales of computer equipment can increase by 13 Allocated xed costs are assigned based on relative sales Computer Home Of ce Equipment Furniture Sales 1200000 800000 Less cost of goods sold 700000 500000 Contribution margin 500000 300000 Less direct xed costs Salaries 175000 175000 Other 60000 60000 Less allocated xed costs Rent 14118 9882 Insurance 3529 2471 Cleaning 4117 2883 President39s salary 76470 53350 Other l 4 942 Total costs 340 292 380708 Net Income 159708 8708 Prepare an incremental analysis to determine the incremental effect on pro t of discontinuing the furniture line Student Answer Incremental Decrease in Revenue 800000 Incremental cost savings Cost of sales 500000 Salaries 175000 Other 60000 Incremental Increase in computer equipment120000013 156000 Incremental Decrease in computer equipment VC 70000013 91000 Incremental Increase in profit 0 Instructor Explanation Incremental drop in revenue 800000 Incremental cost savings Cost of sales 500000 3 Points Received Comments Question Student Answer Instructor Explanation Salaries 175000 Other 60000 Incremental increase in computer equipment 13 X 1200000 156000 Incremental increase in computer equipment variable costs 13 X 700000 91000 Incremental increase in pro t 0 25 of 25 on target TCO 4 The following monthly data are available for RedEx which produces only one product that it sells for 84 each Its unit variable costs are 28 and its total xed expenses are 64960 Sales during April totaled 1600 units a How much is the breakeven point in sales dollars for RedEx b How many units must RedEx sell in order to earn a pro t of 24640 c A new employee suggests that RedEx sponsor a company softball team as a form of advertising The cost to sponsor the team is 1792 How many more units must be sold to cover this cost a BEP in sales dollars Fixed costsContribution margin ratio CMR Unit contribution margin UCM 842856 CMR56846667 BEP in sales dollars 649606667 o97440 b 6496024640 UCM 6496024640 56 1600 Units 0 179256 32 Units a 84X 28X 64960 0 X 1160 units X 1160 X 84 97440 b 24640 64960 84 28 1600 units C 1792 84 28 32 units Points Received 25 of 25 Comments perfect
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