1. _____Smith Company will receive a lump sum of $15,000 in 3 years. What is the present value of this cash flow, discounted at 8%?

2. _____Terra Company incurred actual manufacturing overhead of $300,000 this year; the applied overhead was $305,000. Was Terra over or underapplied and by how much?

3. _____Beginning Finished Goods Inventory + Cost of Goods Manufactured Ending Finished Goods Inventory = what?

4. _____The costs of depreciation on the factory and indirect materials would be classified as what type of cost?

5. ____Johnson Company completes and transfers 9,000 units. Additionally, there are 3,000 units that are 30% complete as to conversion. How many equivalent units does this represent?

6. ____Willy has fixed costs of $30,000. The price of their product is $10 and the variable costs = $4 per unit. What is the breakeven point in units?

7. ____Tommie Co. has fixed costs of $250,000 and a CM ratio of .35. How much revenue would Tommie need to generate to make a profit of $60,000?

8. ____When creating a master budget, the first budget to be prepared is which one?

9. ____Bob computed the net present value of a project and found that the NPV was $2,000 when he discounted the future cash flows using a 6% discount rate. Was the IRR 6%, less than 6% or greater than 6%?

10. ___Billie computed the NPV for a project and found that NPV=0. Is the investment acceptable or unacceptable? 11. ___Barney invests $1,000 today. What is the future value of this investment at the end of 5 years if the money is invested at 8%?

12. ___Klingon is considering an investment which costs $13,337. The investment is for 8 years and generates cash flows of $2500 per year. The internal rate of return for this investment would be about?

13. ___Donna sets a price of $10 per unit on her product. The variable cost per unit is $8. What is the contribution margin ratio?

14. ___When goods get finished, the Finished Goods account is debited, but which account gets credited?

15. ___Johnson Company has fixed costs of $1,000,000. The contribution margin per unit is $4.00 and the contribution margin ratio is .40. The breakeven point in units would be?

16. ___William Company used too many direct labor hours in producing its product. Which variance would be unfavorable?

17. ___Name an appropriate cost driver that could be used as the denominator in the POR calculation.

18. ___Johnson Company invests $20,000 in a machine that will save $4,000 per year. The payback period would be?

19. ___Suppose that cash flows for years 1,2, and 3 are: $1,000, $2,000, and $3,000. What is the present value of this series of cash flows discounted at 12%?

20. ___How is the contribution margin ratio calculated?

21. ___Tony Inc. overapplied the MO in the amount of $3,000. When MO is closed, will Cost of Goods Sold be debited or credited?

22. ___When created the COGM statement, how is total manufacturing cost incurred computed?

23. ___The inventory formula used in the production budget goes like this: Sales in units + __________ minus _________= units to produce.

24. ___The present value of a lump sum of $1 to be received in 2 years discounted at 4% is?

25. ___Name two capital budgeting methods that rely on the time value of money (in other words, present value is calculated).

26. ___At Bobs Big Burgers, the cook, Danny, is paid at the rate of $15 per hour. Would this be a variable cost, a fixed cost, or a mixed cost?

27. ___What is the criterion (or the event) for Finished Goods to move on to Cost of Goods Sold?

28. ___John pays $4198.10 to receive one cash flow in 3 years of $5,000. What is Johns internal rate of return?

29. ___If Penny has fixed costs of $30,000 and her CM ratio is .4, what is Pennys breakeven point in revenue?

30. ___Sally pays $14,125.50 to receive a $2500 annuity for 10 years. What is Sallys internal rate of return?