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ACCT 505 Midterm Exam (Package)

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ACCT 505 Week 4 Midterm (Version 1)

1.
2.

Page One (TCO A) Direct material cost is a part of:(Points : 6)

(TCO A) A cost incurred in the past that is not relevant to any current decision is
classified as a(n): (Points : 6)

3.

(TCO A) The cost of lubricants used to grease a production machine in a


manufacturing company is an example of a(n): (Points : 6)

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: (Points : 6)

6.

(TCO F) Which of the following statements about process costing system is


incorrect?(Points : 6)

7.

(TCO F) The weighted-average method of process costing differs from the FIFO
method of process costing in that the weighted-average method: (Points : 6)

8.
9.

(TCO B) The contribution margin ratio always increases when the:(Points : 6)

(TCO B) The unit sales needed to attain the target profit is found by: (Points : 6)

10. (TCO E) In an income statement prepared using the variable costing


method, variable selling and administrative expenses would: (Points : 6)

11. Page Two: (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.(Points : 15)

12. (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.
(Points : 20)

13. (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? (Points : 25)

14. (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..(Points : 30)
ACCT 504 Week 4 Midterm (Version 2)

1.

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

11. Page Two: (TCO A) The following data (in thousands of dollars) have been taken
from the accounting records of Larden Corporation for the just-completed year.

12. (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.

13. (TCO B) Drake Company's income statement for the most recent year appears
below.

14. (TCO E) Maffei Company, which has only one product, has provided the following
data concerning its most recent month of operations:
ACCT 505 Week 4 Midterm (Version 3)

1.
2.

Page One: (TCO A) Wages paid to an assembly line worker in a factory are a:

(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.
6.

Fixed Cost Per Unit Variable Cost Per Unit

(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:

12. Page Two: (TCO A) The following data (in thousands of dollars) have been taken
from the accounting records of Larden Corporation for the just completed year.

13. (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:

14. (TCO B) Drake Company's income statement for the most recent year appears
below:

15. (TCO E) The Dean Company produces and sells a single product. The following
data refer to the year just completed:
ACCT 505 Week 4 Midterm (Version 4)

1.
2.

(TCO A) Wages paid to a timekeeper in a factory are a ______.

(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.
9.

(TCO B) The contribution margin ratio always decreases when the ______.

(TCO B) The break-even point in unit sales is found by dividing total fixed
expenses by______.

10. (TCO E) Under variable costing, ______.