Managerial Accounting Final

The cost of direct materials transferred into the Filling Department of Lilac Skin Care Company is $20,250. The conversion cost for the period in the Filling Department is $6,372. The total equivalent units for direct materials and conversion are 45,000 ounces and 42,480 ounces, respectively. Determine the conversion cost per equivalent unit. Select one: a. $.30 b. $0.06 c. $0.45 d. $0.15

$0.15

Adams Company is a manufacturing company that has worked on several production jobs during the first quarter of the year. Below is a list of all the jobs for the quarter: ​ Balance Job No. 356 $ 450 Job No. 357 1,235 Job No. 358 378 Job No. 359 689 Job No. 360 456 ​ Jobs 356, 357, 358, and 359 were completed. Jobs 356 and 357 were sold at a profit of $500 on each job. What is the ending balance of Cost of Goods Sold for Adams Company at the end of the first quarter? Select one: a. $456 b. $2,685 c. $1,685 d. $685

$1,685

When Job 117 was completed, direct materials totaled $4,400; direct labor, $5,600; and factory overhead, $2,400. A total of 1,000 units were produced at a per-unit cost of Select one: a. $12,400 b. $1,240 c. $124 d. $12.40

$12.40

The production budgets are used to prepare which of the following budgets? Select one: a. operating expenses b. direct materials purchases, direct labor cost, and factory overhead cost Correct c. sales in dollars d. sales in units

direct materials purchases, direct labor cost, and factory overhead cost

Factory overhead includes a. factory rent and direct labor b. direct materials and direct labor c. indirect materials and direct materials d. indirect labor and indirect materials

indirect labor and indirect materials

Goods that are partially completed by a manufacturer are a. merchandise inventory b. work in process inventory c. finished goods inventory d. materials inventory

work in process inventory

The following data relate to direct labor costs for February: Actual costs7,700 hours at $14.00Standard costs7,000 hours at $16.00 ​ ​ What is the direct labor time variance? Select one: a. $7,700 favorable b. $7,700 unfavorable c. $11,200 unfavorable d. $11,200 favorable

$11,200 unfavorable

The Skagit Company manufactures Hooks and Nooks. The following shows the activities per product and total activity information: Setups Inspections Assembly (dlh) Hooks - 4,000 units 1 3 1 Nooks - 8,000 units 2 2 3 ​ Activity Pool Activity Base Budgeted Amount Setups 20,000 $ 60,000 Inspections 24,000 120,000 Assembly (dlh) 28,000 420,000 ​ Calculate the total factory overhead to be charged to each unit of Hooks. Select one: a. $33 b. $50 c. $11 d. $61

$33

The management of Wyoming Corporation is considering the purchase of a new machine costing $375,000. The company's desired rate of return is 6%. The present value factor for an annuity of $1 at interest of 6% for 5 years is 4.212. In addition to the foregoing information, use the following data in determining the acceptability of this investment: ​ Year Income fromOperations Net CashFlow 1 $18,750 $93,750 2 18,750 93,750 3 18,750 93,750 4 18,750 93,750 5 18,750 93,750 ​ ​ The average rate of return for this investment is Select one: a. 5% b. 10%​ c. 25% d. 15%

10%

The following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. Assets Cash and short-term investments $ 30,000 Accounts receivable (net) 20,000 Inventory 15,000 Property, plant, and equipment 185,000 Total assets $250,000 Liabilities and Stockholders' Equity Current liabilities $ 45,000 Long-term liabilities 70,000 Stockholders' equity-Common 135,000 Total liabilities and stockholders' equity $250,000 Income Statement Sales $85,000 Cost of goods sold 45,000 Gross margin $40,000 Operating expenses (15,000) Interest expense (5,000) Net income $20,000 Number of shares of common stock outstanding 6,000 Market price of common stock $20 Total dividends paid $9,000 Cash provided by operations $30,000 ​ ​ What is the return on total assets for Diane Company? Select one: a. 10.0% b. 8.0% c. 0.10% d. 1.0%

10.0%

If fixed costs are $450,000, the unit selling price is $75, and the unit variable costs are $50, what are the old and new break-even sales (units) if the unit selling price increases by $10? Select one: a. 6,000 units and 5,294 units b. 18,000 units and 6,000 units c. 18,000 units and 12,857 units​ d. 9,000 units and 15,000 units

18,000 units and 12,857 units

Johnston Company is considering discounting a product. The costs of the product consist of $20,000 in fixed costs and $15,000 variable costs. The variable operating expenses related to the product total of $4,000. What is the differential cost of discontinuing the product? Select one: a. 35,000 b. 19,000 c. 15,000 d. 39,000

19,000

Division A of Kern Co. has sales of $350,000, cost of goods sold of $200,000, operating expenses of $30,000, and invested assets of $600,000. What is the return on investment for Division A. Select one: a. 20% b. 25% c. 33% d. 40%

20%

Assume the following sales data for a company: Current year $1,025,000 Preceding year 820,000 ​ What is the percentage increase in sales from the preceding year to the current year? Select one: a. 100% b. 25% c. 125% d. 75%

25%

Heidi Company is considering the acquisition of a machine that costs $420,000. The machine is expected to have a useful life of 6 years, a negligible residual value, an annual net cash flow of $120,000, and annual operating income of $83,721. What is the estimated cash payback period for the machine? Select one: a. 3.5 years b. 5 years c. 5.1 years d. 4 years

3.5 years

In the manufacture of 8,000 units of a product, direct materials cost incurred was $154,600, direct labor cost incurred was $84,000, and applied factory overhead was $45,500. What is the total conversion cost? Select one: a. $129,500 ​ b. $154,600 c. $284,100 d. $238,600

$129,500

Laramie Technologies had the following data: ​ Cost of materials used $50,000 Direct labor costs 56,000 Factory overhead 28,000 Work in process, beg. 45,000 Work in process, end. 32,000 ​ Calculate the cost of goods manufactured Select one: a. $134,000 b. $13,000 c. $106,000 d. $147,000

$147,000

Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below. ActivityCost Activity BaseProcurement $ 370,000 Number of purchase ordersScheduling 250,000 Number of production ordersMaterials handling 500,000 Number of movesProduct development 730,000 Number of engineering changesProduction 1,500,000 Machine hours ​ Number ofPurchaseOrders Number of Production Orders ​ NumberofMoves ​ Number of EngineeringChanges ​ MachineHours ​ NumberofUnits Disk drives 4,000 300 1,400 10 2,000 2,000 Tape drives 4,000 150 800 10 8,000 4,000 Wire drives 12,000 800 4,000 25 10,000 2,500 ​ ​ Determine the activity rate for product development per change. Select one: a. $73,000 b. $8,588 c. $30,417 d. $16,222

$16,222

Light Company has the following information for January: Sales $648,000 Variable cost of goods sold $233,200 Fixed manufacturing costs $155,500 Variable selling and administrative expenses $51,800 Fixed selling and administrative expenses $36.800 Determine the income from operations for Light Company for the month of January. Select one: a. $414,800 b. $233,200 c. $170,700 d. $363,000

$170,700

Land costing $140,000 was sold for $173,000 cash. The gain on the sale was reported on the income statement as other income. On the statement of cash flows, what amount should be reported as an investing activity from the sale of land? Select one: a. $173,000 b. $140,000 c. $313,000 d. $33,000

$173,000

Given the following information, determine the activity rate for setups. Activity Pool Activity Base Budgeted Amount Setups 10,000 $180,000 Inspections 24,000 $120,000 Assembly (DLH) 80,000 $400,000 Select one: a. $58.00 b. $18.00 c. $.75 d. $5.09

$18.00

The Cardinal Company had a finished goods inventory of 55,000 units on January 1. Its projected sales for the next four months were: January - 200,000 units; February - 180,000 units; March - 210,000 units; and April - 230,000 units. The Cardinal Company wishes to maintain a desired ending finished goods inventory of 20% of the following months sales. ​ What is the budgeted units of production for January? Select one: a. 236,000 b. 181,000 ​ c. 200,000 d. 219,000

$181,000

Production and sales estimates for April are as follows: Estimated inventory (units), April 1 9,000 Desired inventory (units), April 30 8,000 Expected sales volume (units): Area A 3,500 Area B 4,750 Area C 4,250 Unit sales price $20 ​ The budgeted total sales for April is Select one: a. $200,000 b. $230,000 c. $270,000 d. $250,000

$250,000

Sales were $750,000, the variable cost of goods sold was $400,000, variable selling and administrative expenses were $90,000, and fixed costs were $200,000. Using variable costing, the contribution margin was: Select one: a. $260,000 b. $60,000 c. $350,000 d. $550,000

$260,000

The Darwin Company reports the following information: Sales$76,500 Direct materials used 7,300 Depreciation on factory equipment 4,700 Indirect labor 5,900 Direct labor 10,500 Factory rent 4,200 Factory utilities 1,200 Sales salaries expense 15,600 Office salaries expense 8,900 Indirect materials 1,200 ​ Product costs are: a. $24,500 b. $30,300 c. $29,200 d. $35,000

$35,000

​The following data relate to direct materials costs for February: ​ ​Materials cost per yard: standard, $2.00; actual, $2.10 Standard yards per unit: standard, 4.5 yards; actual, 4.75 yards Units of production: 9,500 ​ Calculate the direct materials quantity variance. Select one: a. $4,512.50 unfavorable b. $4,512.50 favorable c. $4,750.00 unfavorable d. $4,750.00 favorable

$4,750.00 unfavorable

Light Company has the following information for January: Sales $648,000 Variable cost of goods sold $233,200 Fixed manufacturing costs $155,500 Variable selling and administrative expenses $51,800 Fixed selling and administrative expenses $36,800 Determine the manufacturing margin. Select one: a. $414,800 b. $170,700 c. $233,200 d. $363,000

$414,800

Connor Company's fixed costs are $400,000, the unit selling price is $25, and the unit variable costs are $15. What is the break-even sales (units) if the variable costs are increased by $2? Select one: a. 50,000 units b. 30,770 units c. 40,000 units d. 26,667 units

$50,000 units

Assume that divisional income from operations amounts to $215,000 and top management has established 15% as the minimum rate of return on divisional assets totaling $1,000,000. The residual income for the division is Select one: a. $65,000 b. $215,000 c. $635,000 d. $150,000

$65,000

The net income reported on income statement for the year was $55,000, and depreciation of fixed assets for the year was $22,000. The balances of current assets and current liabilities accounts at the beginning and end of the year are as follows: ​ End of Year Beginning of Year Cash $65,000 $70,000 Accounts Receivable 100,000 90,000 Inventories 145,000 150,000 Prepaid Expenses 7,500 8,000 Current Accounts Payable 51,000 58,000 ​ The total amount reported for cash flows from operating activities on the statement of cash flows using the indirect method is: Select one or more: a. $65,500 b. $77,000 c. $33,000 d. $55,000

$65,500

Who are the individuals charged with the responsibility for directing the day-to-day operations of a business? a. investors b. managers c. shareholders d. customers

Managers

Manufacturing company balance sheets report which types of inventory? Select one: a. Finished good only b. Supplies only c. Work in process and finished goods only d. Materials, work in process, and finished goods

Materials, work in process, and finished goods

Activity-based costing for selling and administrative expenses can also be beneficial in allocating expenses to various products. Which of the following is the best allocation base for help desk costs? Select one: a. Number of calls b. Square footage of the help desk office c. Number of products sold d. Number of sales employees

Number of calls

Which of the following is not one of the five basic phases of the management process? a. Operating b. Controlling c. Decision Making d. Planning

Operating

When using the total cost concept of applying the cost-plus approach to product pricing, what is included in the markup? Select one: a. total selling and administrative expenses plus desired profit b. total fixed manufacturing costs, total fixed selling and administrative expenses, and desired profit c. total costs plus desired profit d. desired profit

desired profit