Solved by verified expert :ACCT 505 Midterm Exam 1
Page One
1. (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 to increase 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
company included in direct labor cost a portion of indirect labor.
The effect of this misclassification will be to
6. (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 method
8. (TCO B) The contribution
margin ratio always increases when the
9.(TCO B) The unit
sales needed to attain the target profit is found by
10. (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 of Larklin Corporation for
the just completed year…….. Required: Prepare a Schedule of Cost of Goods
Manufactured statement in the text box below.
2. (TCO F) The Indiana 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 2
Page One
1. (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 Two
1.(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 3
Page One
1. (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 Unit
6. (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
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) 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
Hospital would 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
equal to___.
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, ______.
