Download AnswersACCT 505 Midterm Exam 1

Page One1. (TCO A)Direct material cost is a part of:2. (TCO A) A cost incurred in the past that is not relevant to any current decision is classified as a(n)3. (TCO A)The cost of lubricants used to grease a production machine in a manufacturing company is an example of a(n)4. (TCO A)When the activity level is expected toincrease within the relevant range, what effects would be anticipated with respect to each of the following?5. (TCO F)Emco Company uses direct labor cost as a basis for computing its predetermined overhead rate. In computing the predetermined overhead rate for last year, the companyincluded in direct labor cost a portion ofindirect labor. The effect of this misclassification will be to6. (TCO F)Which of the following statements about process costing system is incorrect?(Points : 7. (TCO F)The weighted-average method of process costing differs from the FIFO method of process costing in that the weighted-average method8. (TCO B)The contribution margin ratio always increases when the9.(TCO B)Theunit sales needed to attain the target profit is found by10. (TCO E)In an income statement prepared using the variable costing method,variable selling and administrative expenses would

Page Two1. (TCO A).The following data (in thousands of dollars) have been taken from the accounting records of Larklin Corporation for the just completed year..Required: Prepare a Schedule of Cost of Goods Manufacturedstatement in the text box below.2. (TCO F)TheIndiana Company manufactures a product that goes through three processing departments. Information relating to activity in the first department during June is given below:..The department started 290,000 units into production during the month and transferred 300,000 completed units to the next department. 3. (TCO B)A tile manufacturer has supplied the following data:Calculate the company's unit contribution ratioc. If the company increases its unit sales volume by 5% without increasing its fixed expenses, what would the company's net operating income be?4. (TCO E)Lehne Company, which has only one product, has provided the following data concerning its most recent month of operations:The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month..

ACCT 505 Midterm Exam 2Page One1. (TCO A)The variable portion of advertising costs is a.............2. (TCO A)The costs of staffing and operating the accounting department at Central Hospital would be considered by the Department of Surgery to be.........3. (TCO A)The cost of lubricants used to grease a production machine in a manufacturing company is an example of a(n):...............4. (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?5. (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.6. (TCO F)Which of the following statements about the process-costing system is incorrect?7. (TCO F)The weighted-average method of process costing differs from the FIFO method of process costing in that the weighted-average method...........8. (TCO B)The contribution margin equals........9. (TCO B)Which of the following would not affect the break-even point?10. (TCO E)In an income statement prepared using the variable costing method, variable selling and administrative expenses would..........

Page Two1.(TCO A)The following data (in thousands of dollars) have been taken from the accounting records of Larden Corporation for the just-completed year..............2.(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.............3.(TCO B)Drake Company's income statement for the most recent year appears below............4.(TCO E)Maffei Company, which has only one product, has provided the following data concerning its most recent month of operations:................

ACCT 505 Midtrem Exam 3Page One1. (TCO A)Wages paid to an assembly line worker in a factory are a:2. (TCO A)A cost incurred in the past that is not relevant to any current decision is classified as a(n):3. (TCO A)Property taxes on a company's factory building would be classified as a(n):4. (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?5. Fixed Cost Per Unit Variable Cost Per Unit6. (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.7. (TCO F)Which of the following statements about process costing system is incorrect?8. (TCO F)Equivalent units for a process costing system using the FIFO method would be equal to:9. (TCO B)The contribution margin ratio always increases when the:10. (TCO B)Which of the following would not affect the break-even point?11. (TCO E)In an income statement prepared using the variable costing method, variable selling and administrative expenses would:...................

Page Two:1.(TCO A)The following data (in thousands of dollars) have been taken from the accounting records ofLarden Corporationfor the just completed year.2.(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:3.(TCO B)Drake Company's income statement for the most recent year appears below:4. (TCO E)The Dean Company produces and sells a single product. The following data refer to the year just completed:....................

1. (TCO A)Wages paid to a timekeeper in a factory are a ______.2. (TCO A)The costs of staffing and operating the accounting department at Central Hospitalwould be considered by the Department of Surgery to be ______.3. (TCO A)Inventoriable costs are also known as ______.4. (TCO A)Within the relevant range, variable costs can be expected to ______.5. (TCO F)When manufacturing overhead is applied to production, it is added to ______.6. (TCO F)Under a job-order costing system, the dollar amount transferred from Work in Process to Finished Goods is the sum of the costs charged to all jobs ______.7. (TCO F)Equivalent units for a process costing system using the FIFO method would be equalto___.8. (TCO B)The contribution margin ratio always decreases when the ______.9. (TCO B)The break-even point in unit sales is found by dividing total fixed expenses by______.10. (TCO E)Under variable costing, ______.