These are the automatically computed results of your exam. Grades for essay questions, and comments from your instructor, are in the "Details" section below.
(TCO A) Wages paid to an assembly line worker in a factory are a:
Student Answer:
Instructor Explanation:
Chapter 2
2.
Question :
(TCO A) A cost incurred in the past that is not relevant to any current decision is classified as a(n):
Student Answer:
Instructor Explanation:
Chapter 2
3.
Question :
(TCO A) Property taxes on a company's factory building would be classified as a(n):
Student Answer:
Instructor Explanation:
Chapter 2
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 Cost Per Unit Variable Cost Per Unit
Student Answer:
Instructor Explanation:
Chapter 5
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:
Instructor Explanation:
Chapter 3
6.
Question :
(TCO F) Which of the following statements about process costing system is incorrect?
Student Answer:
Instructor Explanation:
Chapter 4
7.
Question :
(TCO F) Equivalent units for a process costing system using the FIFO method would be equal to:
Student Answer:
Instructor Explanation:
Chapter 4
8.
Question :
(TCO B) The contribution margin ratio always increases when the:
Student Answer:
Instructor Explanation:
Chapter 6
9.
Question :
(TCO B) Which of the following would not affect the break-even point?
Student Answer:
Instructor Explanation:
Chapter 6
10.
Question :
(TCO E) In an income statement prepared using the variable costing method, variable selling and administrative expenses would:
* Times are displayed in (GMT-07:00) Mountain Time (US & Canada)
Grading Summary
These are the automatically computed results of your exam. Grades for essay questions, and comments from your instructor, are in the "Details" section below.
(TCO A) The following data (in thousands of dollars) have been taken from the accounting records of Larden Corporation for the just completed year.
Sales
$950
Purchases of raw materials
$170
Direct labor
$210
Manufacturing overhead
$220
Administrative expenses
$180
Selling expenses
$140
Raw materials inventory, beginning
$70
Raw materials inventory, ending
$80
Work in process inventory, beginning
$30
Work in process inventory, ending
$20
Finished goods inventory, beginning
$100
Finished goods inventory, ending
$70
Required: Prepare a Schedule of Cost of Goods Manufactured statement in the text box below.
Student Answer:
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
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: Percent 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:
Instructor Explanation:
Equivalent Units
Materials ConversionUnits transferred to the next department 480,000 480,000
Ending Work in process:
Materials 145000 x 85% 123,250
Conversion 145000 x 75% 108,750
Equivalent units of production 603,250 588,750
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
Student Answer:
Instructor Explanation:
a. Total CM / total units = $600,000 /45,000 units = $1.33 per unitb. Breakeven = FC / CM per unit = $375,000 /$1.33 = 281,955 units x $30 per unit* = $8,458,650 * Sales at $1,350,000 /45,000units = $30 per unit
4.
Question :
(TCO E) The Dean Company produces and sells a single product. The following data refer to the year just completed:
Selling Price
$450
Units in beginning Inventory
0
Units Produced
25000
Units sold
22000
Variable Costs per unit:
Direct materials
$ 200
Direct labor
$ 50
Variable manufacturing overhead
$ 30
Variable selling and admin
$ 15
Fixed Costs:
Fixed manufacturing overhead
$ 275,000
Fixed selling and admin
$ 230,000
Assume that direct labor is a variable cost.
Required:
a. Compute the cost of a single unit of product under both the absorption costing and variable costing approaches.
