Accounting 611 Midterm Exam-Spring 2014
Accounting 611 Midterm Examination-Spring 2014 Drawback 1 Utilizing the next data discover the unknown quantities. Assume every set of data is an unbiased case. a. Merchandise Stock Purchases $210,000 Value of products bought 223,000 Starting steadiness 41,000 Ending steadiness ? b. Direct Supplies Starting steadiness $ 7,000 Ending steadiness 14,000 Purchases 48,000 Direct supplies used ? c. Work-in-process Stock Ending steadiness $ 22,000 Value of products manufactured 21,000 Starting steadiness eight,000 Present manufacturing prices ? d. Completed Items Stock Value of products manufactured $62,000 Ending steadiness 20,000 Value of products bought 61,000 Starting steadiness ? Drawback 2 Dash Manufacturing Firm produces two merchandise, X and Y. The next data is introduced for each merchandise: X Y Promoting value per unit $30 $20 Variable price per unit 20 5 Complete fastened prices are $292,500. Required: a. Calculate the contribution margin for every product. b. Calculate breakeven level in items of each X and Y if the gross sales combine is three items of X for each unit of Y. c. Calculate breakeven quantity in whole dollars if the gross sales combine is 2 items of X for each three items of Y. Drawback three Rachel's Pet Provide Company manufactures two fashions of grooming stations, a normal and a deluxe mannequin. The next exercise and value data has been compiled: Variety of Variety of Variety of Product Setups Parts Direct Labor Hours Customary three 30 650 Deluxe 7 50 150 Overhead prices $40,000 $120,000 Assume a conventional costing system applies the $160,000 of overhead prices primarily based on direct labor hours. a. What is the entire quantity of overhead prices assigned to the usual mannequin? b. What is the entire quantity of overhead prices assigned to the deluxe mannequin? Assume an activity-based costing system is used and that the variety of setups and the variety of parts are recognized because the activity-cost drivers for overhead. c. What is the entire quantity of overhead prices assigned to the usual mannequin? d. What is the entire quantity of overhead prices assigned to the deluxe mannequin? Drawback four Garments, Inc., has a mean annual demand for pink, medium polo shirts of 25,000 items. The price of putting an order is $80 and the price of carrying one unit in stock for one yr is $25. Required: a. Use the economic-order-quantity mannequin to find out the optimum order measurement. b. Decide the reorder level assuming a lead time of 10 days and a piece yr of 250 days. c. Decide the security inventory required to forestall stockouts assuming the utmost lead time is 20 days and the utmost day by day demand is 125 items. Drawback 5 The following information can be found for Ruggles Firm for the yr ended September 30, 2011. Gross sales: 24,000 items at $50 every Anticipated and precise manufacturing: 30,000 items Manufacturing prices incurred: Variable: $525,000 Fastened: $372,000 Nonmanufacturing prices incurred: Variable: $144,800 Fastened: $77,400 Starting inventories: none Required: a. Decide working earnings utilizing the variable-costing method. b. Decide working earnings utilizing the absorption-costing method. Drawback 6 Jerry's TV and Equipment Retailer is a small firm that has employed you to carry out some administration advisory providers. The next data pertains to 2011 operations. Gross sales (1,000 televisions) $ 900,000 Value of products bought 400,000 Retailer supervisor's wage per yr 70,000 Working prices per yr 157,000 Promoting and promotion per yr 15,000 Commissions (four% of gross sales) 36,000 Half 1. What was the variable price per unit bought for 2011? A) $36 B) $436 C) $678 D) $400 Half 2What have been whole fastened prices for 2011? A) $678,000 B) $436,000 C) $242,000 D) $227,000 Half three What are the estimated whole prices if Penny's expects to promote three,000 items subsequent yr? A) $1,550,000 B) $1,332,000 C) $1,671,000 D) $1,453,000 Half 4Which price estimation technique is being utilized by Jerry's TV and Equipment Retailer? A) the commercial engineering technique B) the convention technique C) the account evaluation technique D) the quantitative evaluation technique