WorksheetsACC222 Midterm Review
Total questions: 15
Worksheet time: 37mins
When the information includes economic, nonfinancial and financial data; when the information is provided to insiders including executives, managers and employees; when the information has future orientation, we are dealing with:
Managerial Accounting
Financial Accounting
Assuming a company's inventory increased during the period, which of the following misclassifications may increase net income?
Recording administrative salaries as a product cost
Recording depreciation on production equipment as an expense
Expensing raw material costs instead of including them in inventory
Recording depreciation on production equipment as an expense and Expensing raw material costs instead of including them in inventory
All of the following are downstream costs except:
Packaging costs
advertising
research and development
sales commissions
Determine the total cost of ending inventory and cost of goods sold
Ending Inventory = $3,600
Cost of Goods Sold = $4,800
Ending Inventory = $1,200
Cost of Goods Sold = $14,400
Becky Shelton, a teacher at Kemp Middle School, is in charge of ordering the T-shirts for the school's annual fund-raising project. T-shirts cost the school $7 each and are normally sold for $14. Ms. Shelton has decided to order 800 shirts. If the school receives actual sales orders for 835 shirts, what amount of profit will the school earn? What amount of opportunity cost will the school incur?
Profit = $5,600
Profit = $5,845
Opportunity Cost = $245
Opportunity Cost = $390
In this graph, which depicts the relationship between units produced and total cost, the dotted line depicts which type of total cost?
Variable Cost
Fixed Cost
Mixed Cost
None of these
Select the correct statement regarding fixed costs:
The fixed cost per unit increases when volume increases
Because they do not change, fixed costs should be ignored in decision making
The fixed cost per unit does not change when volume decreases
The fixed cost per unit decreases when volume increases
What is the company contribution margin?
Sales Revenue = $125,000
Variable Manufacturing Costs = $42,500
Fixed Manufacturing Costs = $37,500
Variable Selling and administrative costs = $15,000
Fixed selling and administrative costs = $12,500
$30,000
$17,500
$45,000
$67,500
Wham Company sells electronic squirrel repellants for $60. Variable costs are 60% of sales and total fixed costs are $40,000. What is the firms magnitude of operating leverage if 2000 units are sold?
0.17
6.00
2.25
None of these
Consider this cost-volume-profit graph. The area designated by the letter (C) represents which of the following?
Profit Area
Loss Area
Break-even Point
Total Cost
Lucas Co. has total fixed cost of $5,000 and sells product that has a contribution margin of $50 per unit, selling price of $125 per unit, and has current sales of $15,000. What is the margin of safety ratio?
20%
16.7%
15%
Which of the following costs generally can be traced directly to units of product?
Indirect Materials
Overhead Costs
Assembly Labor
Indirect Materials and Assembly Labor
At the beginning of the year, Rangle company expected to incur $54,000 of overhead costs in producing 6,000 units of product. The direct material cost is $20 per unit of product. Direct labor cost is $30 per unit. During January, 600 units were produced. The total cost of the units made in January was
$30,000
$5,400
$35,400
None of these
Joint products A and B emerge from common processing that costs $150,000 and yields 8,000 units of Product A and 4,000 units of Product B. Product A can be sold for $100 per unit. Product B can be sold for $80 per unit. What amount of the joint costs will be assigned to Product B if joint costs are allocated on the basis of number of units produced? (Do not round intermediate calculations.)
$42,857
$66,667
$50,000
$100,000
In a manufacturing company, service department costs are
reported as selling and administrative expenses
allocated to the products made by the company
treated as direct costs
