ACCT 221 Quiz 4

EVERY QUESTION IS WORTH 4 POINTS

Please answer in the Answer Sheet provided at the end of the Question booklet. Submit the Answer Sheet only through Quiz 4 Assignment

Do NOT submit the entire Question Booklet. If you do so, you will have a 5 point deduction.

Part 2 Supporting Computations

Please show your supporting computations here below on all questions that require computations. Eg: if your answer to a question is 10 and you had to add 5+ to get to the answer, then I need to see that.

Please cross reference your supporting computations with the appropriate question number. These computations are an integral part of this quiz. Failure to include them here will result in a significant loss of points.

You should have 23 sets of computations here. Only Q# 7 and 12 do not need computations.

ACCT 221 Quiz 4 EVERY QUESTION IS WORTH 4 POINTS Please answer in the Answer Sheet provided at the end of the Question booklet. Submit the Answer Sheet only through Quiz 4 Assignment link in LEO. Do NOT submit the entire Question Booklet. If you do so, you will have a 5 point deduction. Deadline: 11.59 pm EST, December 6 I will accept late work up to 12 hours after the deadline with an automatic 10 point penalty. After that, you will receive a zero for this Quiz. 1) Pacific Auto manufactures batteries for cars. The company has the capacity to produce 35,000 batteries per year, and is currently producing and selling 25,000 batteries per year. The following information relates to current production: Sale price per unit Variable costs per unit: Manufacturing Marketing and administrative Total fixed costs: Manufacturing Marketing and administrative $175 60 20 $700,000 $300,000 If a special sales order is accepted for 5,500 batteries at a price of $150 per unit, and fixed costs remain unchanged, what is the change in operating income? (Assume the special sales order will require variable manufacturing costs and variable marketing and administrative costs.) A) Operating income decreases by $825,000. B) Operating income increases by $825,000. C) Operating income decreases by $385,000. D) Operating income increases by $385,000. 2) Talk Made EZ Company makes special equipment used in cell phones. Each unit sells for $400. Talk Made EZ uses just-in-time inventory procedures; it produces and sells 12,500 units per year. It has provided the following income statement data: Traditional Costing Revenue $5,000,000 Cost of goods sold 3,000,000 Gross Profit 2,000,000 Selling & admin expenses 650,000 Contribution Margin Revenue $5,000,000 Variable Expenses Manufacturing 1,000,000 Selling & admin 400,000 Contribution Margin 3,600,000 Fixed Expenses Manufacturing 2,000,000 Selling & admin 250,000 Operating income $1,350,000 Operating income $1,350,000 A foreign company has offered to buy 100 units for a reduced price of $250 per unit. The marketing manager says the sale will not negatively impact the company's regular sales. The sales manager says that this sale will not require any incremental selling & administrative costs, as it is a one-time deal. The production manager reports that there is plenty of excess capacity to accommodate the deal without requiring any additional fixed costs. If Talk Made EZ accepts the deal, how will this impact operating income? A) up $17,000 B) down $8,000 C) up $25,000 D) down $800 3) Benjamin Sports Inc. has two product linessoftball helmets and football helmets. Income statement data for the most recent year follow: Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Total Softball Helmets Football Helmets $850,000 $500,000 $350,000 (530,000) (250,000) (280,000) $320,000 $250,000 $70,000 (180,000) (90,000) (90,000) $140,000 $160,000 $(20,000) Assuming fixed costs remain unchanged, and that there would be no adverse effect on other sales. What will be the effect of dropping Football Helmets line on the operating income of the company? A) Operating income will increase by $20,000. B) Operating income will increase by $90,000. C) Operating income will decrease by $70,000. D) Operating income will decrease by $350,000. 4) Sadie Kitchenware Co. manufactures two products: toaster ovens and bread machines. The following data are available: Sale price Variable costs Toaster Ovens $80 $40 Bread Machines $150 $70 Sadie Kitchenware Co. can manufacture six toaster ovens per machine hour and four bread machines per machine hour. Sadie Kitchenware Co.'s production capacity is 1,800 machine hours per month, and Sadie Kitchenware Co. can sell as many units of either type as it can produce. What product and how many units should the company produce in a month to maximize profits? A) 7,200 bread machines B) 5,400 toaster ovens and 3,600 bread machines C) 7,200 toaster ovens and 2,400 bread machines D) 10,800 toaster ovens 5) Rajiv Motors fabricates inexpensive automobiles for sale to 3rd world countries. Each auto includes one wiring harness, which is currently made in-house. Details of the harness fabrication are as follows: Volume Variable cost per unit Fixed costs 1,200.00 units per month $12.50 per unit $20,000.00 per month A factory in BanglaDesh has offered to supply Rajiv Motors with ready-made units for a price of $15 each. Assume that Rajiv Motors fixed costs are unavoidable, and that Rajiv will not be able to use the excess capacity in any profitable manner. What will be the impact on Rajiv's monthly operating income, if Rajiv decides to outsource? A) It will go up by $3,000. B) It will go down by $20,000. C) It will go up by $20,000. D) It will go down by $3,000. 6) Cluck Cluck Co. produces 1,000 packs of chicken feed per month. Sales price is $4 per pack. Variable cost is $1.50 per unit, and fixed costs are $1,800 per month. Management is considering adding a vitamin supplement to improve the value of the product. The variable cost will go up from $1.50 to $1.90 per unit, and fixed costs will go up by 20%. Cluck Cluck will price the new product at $5 per pack. How will this affect operating income? A) Operating income will go down by $150 per month. B) Operating income will remain unchanged. C) Operating income will go down by $400 per month. D) Operating income will go up by $240 per month. 7) Which of the following statements is correct regarding the activity-based costing system? A) It uses separate indirect cost allocation rates for each activity. B) It is not as accurate or precise as traditional costing systems. C) It accumulates overhead costs by processing departments. D) It is less complex and, therefore, less costly than traditional systems. 8) Morgana Avionics makes three types of radios for small aircraft: Model A, Model B, and Model C. The manufacturing operations are mechanized and there is no direct labor. Manufacturing overhead costs are significant, and Morgana has adopted an activity-based costing system. Direct materials costs per unit for each model are as follows: Model A Model B Model C $28 $32 $40 Morgana has three activities: assembly, materials management, and testing. The cost driver for assembly is machine hours. The cost driver for materials management is number of parts, and the cost driver for testing is the number of units of product. Total costs and production volumes for the year 2015 were estimated as follows: Assembly Materials management Testing Total cost $780,000 $120,000 $22,500 Total units 120,000 80,000 5,000 Cost Driver Machine hours Parts Units The Model A radio requires 12 parts to construct, and requires 16 machine hours of processing. What is the manufacturing cost to make one unit of Model A? A) $150.00 B) $132.00 C) $126.50 D) $154.50 9) Norman Audio Services provided the following information regarding its activity-based costing system: Purchasing department costs are allocated based on the number of purchase orders and the cost allocation rate is $75 per purchase order. Assembly department costs are allocated based on the number of parts used and the cost allocation rate is $1.00 per part. Packaging department costs are allocated based on the number of units produced and the allocation rate is $2.00 per unit produced. Each stereo produced has 50 parts, and the direct materials cost per unit is $70. There are no direct labor costs. Quality Stereo has an order for 1,000 stereos which will require 50 purchase orders in all. What is the total cost of the 1,000 stereos? A) $125,750 B) $55,750 C) $123,750 D) $122,000 10) Trang Company had the following activities, allocated costs, and allocation bases: Activities Account inquiry (hours) Account billing (lines) Account verification (accounts) Correspondence (letters) Allocated Costs $60,000 $30,000 Allocation Base 2,000 hours 20,000 lines $15,000 20,000 accounts $10,000 1,000 letters The above activities are carried out at two of their regional offices. Account inquiry (hours) Account billing (lines) Account verification (accounts) Correspondence (letters) Northeast Office Midwest Office 100 hours 200 hours 10,000 lines 7,000 lines 1,000 accounts 50 letters 600 accounts 100 letters What is the cost per line to Trang for the account billing activity? A) $1.50 B) $30.00 C) $1.60 D) $1.43 11) Praneel Auto Spares Inc, a manufacturer of spare parts, has two production departments: Assembling and Packaging. The Assembling department is machine oriented, while the Packaging department is labor oriented. Estimated manufacturing overhead costs for the year 2015 were $15,000,000 for Assembling and $10,000,000 for Packaging. Calculate departmental wide allocation rates if total estimated machine hours were 30,000 and labor hours were 20,000 for the year. A) $250, $300 B) $500, $500 C) $300, $300 D) $450, $540 12) What do Increased number of repeat customers and increased rate of on-time deliveries signify?: A) product quality. B) market share. C) customer satisfaction. D) skills and knowledge of the employees. 13) Zarena was reviewing the water bill for her dog day care and spa and determined that her highest bill, $3,800, occurred in May when she washed 400 dogs and her lowest bill, $2,400, occurred in November when she washed 200 dogs. What was the variable cost per dog associated with Zarena's water bill? A) $6.00 B) $12.00 C) $9.50 D) $7.00 14) Phan Company sold 2,000 units in December at a price of $35 per unit. The variable cost is $20 per unit. The monthly fixed costs are $10,000. What is the operating income earned in December? A) $30,000 B) $70,000 C) $20,000 D) $40,000 15) Vatsala sells hand-knit scarves at the flea market. Each scarf sells for $25.Vatsala pays $30 to rent a vending space for one day. The variable costs are $15 per scarf. What total revenue amount does she need to earn to break even? A) $85 B) $75 C) $50 D) $100 16) Brielle Company sells glass vases at a wholesale price of $2.50 per unit. The variable cost of manufacture is $1.75 per unit. The monthly fixed costs are $7,500. Brielle's current sales are 25,000 units per month. If Brielle wants to increase operating income by 20%, how many additional units, must Brielle sell? (Round your intermediate calculations to two decimal places) A) 145,000 glass vases B) 7,500 glass vases C) 13,500 glass vases D) 3,000 glass vases 17) Out of this World Foods produces a gourmet condiment which sells for $16 per unit. Variable costs are $6 per unit, and fixed costs are $5,000 per month. If Out of this World expects to sell 1,500 units, compute the margin of safety in units. A) 500 units B) 1,000 units C) 1,500 units D) 8,000 units 18) Venkat Company has provided the following information regarding the two products that it sells: Sales price per unit Variable cost per unit Jet Boats Ski Boats $8,000 $20,000 $4,800 $14,000 Annual fixed costs are $280,000. How many units must be sold in order for Venkat to breakeven, assuming that Venkat sells five jet boats for every two ski boats sold? A) 70 jet boats and 28 ski boats B) 50 jet boats and 20 ski boats C) 20 jet boats and 50 ski boats D) 45 jet boats and 28 ski boats 19) White Marsh Company has prepared the following sales budget: Month March April May June Budgeted Sales $200,000 180,000 220,000 260,000 Cost of goods sold is budgeted at 60% of sales and the inventory at the end of February was $36,000. Desired inventory levels at the end of each month are 20% of the next month's cost of goods sold. What is the desired beginning inventory on June 1? A) $52,000 B) $26,400 C) $43,200 D) $31,200 20) EZ Financing Inc. has prepared the operating budget for the first quarter of 2015. They forecast sales of $50,000 in January, $60,000 in February, and $70,000 in March. Variable and fixed expenses are as follows: Variable: Power cost (40% of Sales) Miscellaneous expenses: (5% of Sales) Fixed: Salary expense: $8,000 per month Rent expense: $5,000 per month Depreciation expense: $1,200 per month Power cost/fixed portion: $800 per month Miscellaneous expenses/fixed portion: $1,000 per month Calculate total selling and administrative expenses for the month of January. A) $38,500 B) $47,500 C) $41,700 D) $43,000 21) Mumbai Inc. has prepared the following purchases budget: Month June July August September October Budgeted Purchases $67,000 72,500 76,300 73,700 69,200 All purchases are paid for as follows: 10% in the month of purchase, 50% in the following month, and 40% two months after purchase. Calculate total cash payments made in October for purchases. A) $72,630 B) $70,680 C) $70,520 D) $74,290 22 Mumbai Inc. has prepared the following purchases budget: Month June July August September October Budgeted Purchases $67,000 72,500 76,300 73,700 69,200 All purchases are paid for as follows: 10% in the month of purchase, 50% in the following month, and 40% two months after purchase. Calculate balance of Accounts payable at the end of October. A) $77,680 B) $91,760 C) $69,330 D) $74,290 23) Jackson Corp. has provided a part of its budget for the 2 nd quarter: Cash collections Cash payments: Purchases of inventory Operating expenses Capital expenditures Apr $40,000 May $45,000 June $52,000 4,500 7,900 0 7,200 5,600 20,000 4,500 9,000 4,600 The cash balance on April 1 is $12,000. Assume that there will be no financing transactions or costs during the quarter. Calculate the cash balance at the end of April. A) $50,000 B) $40,200 C) $39,600 D) $51,800 24) Baltimore Enterprises has budgeted sales for the months of September and October at $300,000 and $280,000, respectively. Monthly sales are 80% credit and 20% cash. Of the credit sales, 50% are collected in the month of sale and 50% are collected in the following month. Calculate cash collections for the month of October. A) $168,000 B) $232,000 C) $288,000 D) $290,000 25) The budgeted production of Fells Point Inc. is 8,000 units. Each unit requires 40 minutes of direct labor work to complete. The direct labor rate is $100 per hour. Calculate the budgeted cost of direct labor for the month. A) $533,333.33 B) $500,000.00 C) $566,666.66 D) $633,333.33 ACCT 221 Quiz 3 Answer Sheet Name: (3 point deduction if no name is provided here) Part 1 Note: DO NOT SHOW COMPUTATIONS HERE IN PART 1. SHOW THEM IN PART 2 BELOW 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Part 2 Supporting Computations Please show your supporting computations here below on all questions that require computations. Eg: if your answer to a question is 10 and you had to add 5+5=10 to get to the answer, then I need to see that. Please cross reference your supporting computations with the appropriate question number. These computations are an integral part of this quiz. Failure to include them here will result in a significant loss of points. You should have 23 sets of computations here. Only Q# 7 and 12 do not need computations. ACCT 221 Quiz 5 Please answer in the Answer Sheet provided at the end of the Question booklet. Submit the Answer Sheet only through Final Exam Assignment link in LEO. Do NOT submit the entire Question Booklet. If you do so, I will levy a 5 point deduction. This quiz is not timed in order to alleviate the pressure on you. You may print out the Question booklet, work on the questions offline I will accept late work up to 4 hours after the deadline with an automatic 10 point penalty. After that, you will receive a zero for this exam unless there are documented extenuating circumstances 1) Alaska Company sold 2,000 units in October at a price of $35 per unit. The variable cost is $20 per unit. Calculate the total contribution margin. A) $70,000 B) $30,000 C) $40,000 D) $20,000 2) Mendez Company provides the following information about its product: Targeted operating income Selling price per unit Variable cost per unit Total fixed costs $50,000 6.00 1.50 125,000 Mendez has a contribution margin ratio of A) 75% B) 100% C) 125% D) 25% 3) Trang Company provided the following manufacturing costs for the month of June. Direct labor cost Direct materials cost Equipment depreciation (straight-line) Factory insurance Factory manager's salary Janitor's salary Packaging costs Property taxes Calculate Trang's total fixed costs. A) $311,600 $136,000 80,000 24,000 19,000 12,800 5,000 18,800 16,000 B) $52,800 C) $71,600 D) $76,800 4) The utility bill for Shobita Legal Services LLC consists of both fixed and variable costs. Using the 4-month data below apply the high-low method to answer the question. January February March April Minutes Total Bill 460 $3,000 200 $2,675 160 $2,625 300 $2,800 If Shobita uses 380 minutes in May, how much will the total bill be? A) $2,425 B) $2,478 C) $2,900 D) $3767 5) Sangeeta Industries is considering replacing an aging Evaporator that is presently used in its production process. The following information is available: Original cost Remaining useful life in years Current age in years Book value Current disposal value in cash Future disposal value in cash (in 5 years) Annual cash operating costs Old Replacemen Evaporator t Machine $55,000 $45,000 3 3 3 0 $33,000 $9,000 $0 8,500 $0 $3,500 Sunk costs would amount to A) $55,000 B) $33,000 C) $9,000 D) $45,000 6) Vatsala Company discloses its financial information as follows: Income from operations Interest expense Gains/(losses) on sale of equipment Net income Beginning assets Ending assets $200,000 45,000 (2,500) 152,500 2,600,000 3,200,000 Calculate return on investment based on the above information. A) 6.3% B) 5.3% C) 6.9% D) 7.2% 7) Venkat Inc. manufactures and sells pens for $5 each. Inez Corp. has offered Venkat Inc. $3 per pen for a one-time order of 3,500 pens. The total manufacturing cost per pen, using traditional costing, is $1 per unit, and consists of variable costs of $0.85 per pen and fixed overhead costs of $0.15 per watch. Assume that Venkat Inc. has excess capacity and that the special order would not adversely affect regular sales. What is the change in operating income that would result from accepting the special sales order? A) increase of $7,000 B) decrease of $7,000 C) increase of $7,525 D) decrease of $7,525 8) Mikhail Building Supplies Co. has a sales office which sells steel beams to property developers. It discloses its financial information as follows . Calculate the flexible budget variance for the steel beams? A) $1,850 U B) $3,000 F C) $10,000 U D) $1,500 F 9. Calculate the inventory turnover using the following data for the current year 2014 Net sales on account during 2014 Cost of merchandise sold during 2014 $ 500,000 330,000 Accounts receivable, Jan 1, 2014 45,000 Accounts receivable, December 31, 2014 35,000 Inventory, Jan 1, 2014 90,000 Inventory, December 31, 2014 a. 3.3 b. 8.3 c. 3.7 110,000 d. 3.0 10) Benjamin Nautical Company has several divisions which are investment centers. Data for the Sail Boat Division and the Yacht Trailer Division are shown here: Operating income Total assets at Jan 1 Total assets at Dec 31 Sail Boat Division $90,000 $670,000 $710,000 Yacht Division $36,000 $230,000 $220,000 Which of the following statements would be the most meaningful interpretation of this data? A) Performance of Sail Boat Division is better than that of Yacht Division because Sail Boat Division has higher assets. B) Yacht Division uses its assets more efficiently than Sail Boat Division because it has higher ROI. C) Sail Boat Division shows more efficient use of assets than Yacht Division because it has higher operating income. D) Sail Boat Division is more financially successful than Yacht Division because it shows an increase in assets 11. C K Venkat Chemicals estimates for July are as follows: Estimated inventory (units), July 1 8,500 Desired inventory (units), July 31 10,500 Expected sales volume (units), July 76,000 For each unit produced, the direct materials needed are: Direct material A ($5 per lb.) 3 lbs. Direct material B ($18 per lb.) 1/2 lb. Calculate the total direct materials purchases of materials A and B (assuming no beginning or ending material inventory) required for July productions: a. $1,080,000 for A; $648,000 for B b. $1,080,000 for A; $1,296,000 for B c. $1,170,000 for A; $702,000 for B d. $1,125,000 for A; $675,000 for B 12.Jackson Company had a finished goods inventory of 55,000 units on January 1. It's 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 Jackson Company wishes to maintain a desired ending finished goods inventory of 20% of the following months sales. Calculate the budgeted production for January? a. 236,000 b. 181,000 c. 200,000 d. 219,000 13. Nebraska Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are $240,000, $300,000, and $420,000, respectively, for September, October, and November. The company expects to sell 20% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month of the sale, 25% in the month following the sale, and the remainder in the following month. Calculate the cash collections in September from accounts receivable: a. $240,000 b. $134,400 c. $192,000 d. $168,000 14.Florida Company opened its doors on March 31 of the current year. Projected manufacturing costs for the first three months of business are $156,800, $195,200, and $217,600, respectively, for April, May, and June. Depreciation, insurance, and property taxes represent $28,800 of the estimated monthly manufacturing costs. Insurance was paid on March 31, and property taxes will be paid in November. Three-fourths of the remainder of the manufacturing costs are expected to be paid in the month in which they are incurred, with the balance to be paid in the following month. Calculate the cash payments for manufacturing in the month of June : a. $14,600 b. $188,800 c. $217,600 d. $183,200 15.CK Venkat Chemicals releases the following data related to direct materials costs for November: Actual costs 4,600 pounds at $5.50 Standard costs 4,500 pounds at $6.00 Calculate the direct materials price variance? a. $2,250 favorable b. $2,250 unfavorable c. $2,300 favorable d. $1,700 unfavorable 16 CK Venkat Chemicals releases the following data relate to direct materials costs for November: Actual costs 4,600 pounds at $5.50 Standard costs 4,500 pounds at $6.00 Calculate the direct materials quantity variance? a. $550 unfavorable b. $600 favorable c. $550 favorable d. $600 unfavorable 17. CK Venkat Chemicals releases the following data related to direct labor costs for February: Actual costs 7,700 hours at $13 Standard costs 7,000 hours at $9 Calculate the direct labor time variance? a. $9,100 favorable b. $9,100 unfavorable c. $6,300 unfavorable d. $6,300 favorable 18. CK Venkat Chemicals releases the following data relate to direct labor costs for February: Actual costs 7,700 hours at $13 Standard costs 7,000 hours at $9 Calculate the direct labor rate variance? a. $28,000 favorable b. $28,000 unfavorable c. $30,800 favorable d. $30,800 unfavorable 19. The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows: Standard Costs Fixed overhead (based on 10,000 hours) 3 hours @ $.80 per hour Variable overhead 3 hours @ $2 per hour Actual Costs Total variable cost, $18,000 Total fixed cost, $8,000 The amount of the factory overhead volume variance is: a. $2,000 favorable b. $2,000 unfavorable c. $2,500 unfavorable d. $0 20.The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows: Standard Costs Fixed overhead (based on 10,000 hours) 3 hours @ $.80 per hour Variable overhead 3 hours @ $2 per hour Actual Costs Total variable cost, $18,000 Total fixed cost, $8,000 The amount of the total factory overhead cost variance is: a. $2,000 favorable b. $5,000 unfavorable c. $2,500 unfavorable d. $0 21. Balance sheet and income statement data indicate the following: Bonds payable, 10% (issued 1988 due 2012) Preferred 5% stock, $100 par (no change during year) Common stock, $50 par (no change during year) Income before income tax for year $1,000,000 300,000 2,000,000 350,000 Income tax for year 80,000 Common dividends paid 50,000 Preferred dividends paid 15,000 Based on the data presented above, what is the number of times bond interest charges were earned ? a. 3.7 b. 4.4 c. 4.5 d. 3.5 22) Kim Corporation has two major divisions: Northern Products and Southern Products. It provides the following information for the year 2014 Sales revenue Operating income Average total assets Target rate of return Northern Products Southern Products Division Division $140,000 $1,040,000 $46,400 $220,000 $300,000 $5,540,000 14.0% 14.0% Calculate the residual income for the Northern division. A) $5,500 B) $4,400 C) $2,500 D) $1,800 23) New York Inc. Inc. has a division that manufactures a component that sells for $150 and has a variable cost of $45. Another division of the company wants to purchase the component. Fixed cost per unit of component is $25. What is the minimum transfer price? Assume the division is operating at capacity? A) $150 B) $45 C) $55 D) $140 24) New York Inc. Inc. has a division that manufactures a component that sells for $150 and has a variable cost of $45. Another division of the company wants to purchase the component. Fixed cost per unit of component is $25. What is the maximum transfer price if the division is operating below its capacity? A) $70 B) $170 C) $150 D) $30 25) Fletcher Supplies Company has a sales office which sells concrete culvert pipe to property developers. The sales office is a revenue center and must prepare a monthly performance report. It has provided the following information. How much is the flexible budget variance for the 40 inch pipe? A) $1,850 U B) $3,000 F C) $10,000 U D) $1,500 F 26) Fletcher Supplies Company has a sales office which sells concrete culvert pipe to property developers. The sales office is a revenue center and must prepare a monthly performance report. Below is the partially completed performance report. The company uses management by exception to address flexible budget variances. On which variance would the company focus first? A) 40 inch B) 36 inch long C) 36 inch short D) 32 inch 27) Chesapeake Company provided the following manufacturing costs for the month of June. Direct labor cost Direct materials cost $136,000 80,000 Equipment depreciation (straight-line) Factory insurance Factory manager's salary Janitor's salary Packaging costs Property taxes 24,000 19,000 12,800 5,000 18,800 16,000 From the above information, calculate Chesapeake's total variable costs. A) $311,600 B) $62,300 C) $234,800 D) $38,400 28) Da Silva Company has variable costs of $0.60 per unit of product. In August, the volume of production was 24,000 units and units sold were 20,000. The total production costs incurred were $31,900. What are the fixed costs per month? A) $17,500 B) $19,900 C) $9,600 D) $14,400 29. Based on the following data, what is the quick ratio, rounded to one decimal point? Accounts payable Accounts receivable Accrued liabilities $ 30,000 65,000 7,000 Cash 20,000 Intangible assets 40,000 Inventory 72,000 Long-term investments 100,000 Long-term liabilities 75,000 Marketable securities 36,000 Notes payable (short-term) 20,000 Property, plant, and equipment Prepaid expenses a. 2.4 b. 3.4 625,000 2,000 c. 2.1 d. 1.5 30.A company with working capital of $400,000 and a current ratio of 2.5 pays a $75,000 short-term liability. The amount of working capital immediately after payment is a. $475,000 b. $325,000 c. $400,000 d. $75,000 31. Based on the following data for the current year, what is the inventory turnover? Net sales on account during year $ 500,000 Cost of merchandise sold during year 330,000 Accounts receivable, beginning of year 45,000 Accounts receivable, end of year 35,000 Inventory, beginning of year 90,000 Inventory, end of year 110,000 a. 3.3 b. 8.3 c. 3.7 d. 3.0 32.The Rand Corporation began the current year with a retained earnings balance of $25,000. During the year, the company corrected an error made in the prior year. The error was due to the accountant failing to record depreciation expense of $3,000 on equipment. Also, during the current year, the company earned net income of $12,000 and declared cash dividends of $5,000. Compute the year end retained earnings balance. a. $29,000 b. $35,000 c. $39,000 d. $45,000 33. Lazarus Consulting Services has 100,000 authorized shares of $4 par common stock issued 40,000 shares at $8. Subsequently, Lazarus declared a 2% stock dividend on a date when the market price was $11 a share. What is the amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend? a. $3,200 b. $6,400 c. $4,800 d. $8,800 34. Ignatius the Investor's Income for the period would not be affected by a. interest received on a temporary investment in bonds b. dividends received on a long-term investment in stock where the investor owns 10% of the investee's stock c. dividends received on a long-term investment in stock where the investor owns 30% of the investee's stock d. interest received on a long-term investment in bonds 35. Phan Company owns 28% of the common stock of San Company and accounts for the investment using the equity method. Assuming that Phan Company purchased the stock several years ago, the balance in the investment account would be equal to the cost of the a. investment b. investment plus Phan's share of San's net income earned since the investment was purchased c. investment plus the total amount of dividends Phan has received from San since the investment was purchased d. investment plus Phan's share of San's net income earned since the investment was purchased minus the total amount of dividends Phan has received from San since the investment was purchased 36.The Krebhel Company issued $100,000 of 12% bonds on May 1, 2006 at face value. The bonds pay interest semiannually on January 1 and July 1. The bonds are dated January 1, 2006, and mature on January 1, 2010. The total interest expense related to these bonds for the year ended December 31, 2006 is a. $2,000 b. $4,000 c. $8,000 d. 12,000 37.When the market rate of interest was 12%, Patel Corporation issued $1,000,000, 11%, 10-year bonds that pay interest annually. The selling price of this bond issue was a. $ 321,970 b. $1,000,000 c. $ 943,494 d. $621,524 38.When the market rate of interest was 11%, Shah Corporation issued $100,000, 8%, 10-year bonds that pay interest semiannually. Using the straight-line method, the amount of discount or premium to be amortized each interest period would be a. $4,000 b. $896 c. $17,926 d. $1,793 39. Bri Cheese Products Co. purchased 1,000 shares of its $5 par common stock at $10 and subsequently sold 500 of the shares at $20. What is the amount of revenue realized by Bri from the sale? a. $0 b. $5,000 c. $2,500 d. $10,000 40.Bri Cheese Products Co. purchases 10,000 shares of its own $10 par common stock for $25 per share, recording it at cost. What will be the effect on Bri's total stockholders' equity? a. increase, $100,000 b. increase, $250,000 c. decrease, $100,000 d. decrease, $250,000 41. Below are selected T accounts from Bri Cheese Dairy with incomplete information: Work in Process Oct. 1 Balance 20,000 | Oct. 31 Goods 31 Direct | finished materials 96,700 | 31 Direct | labor 201,000 | 31 Factory overhead | X| Finished Goods Oct. 1 Balance 52,000 | 31 Goods | finished 360,000 | X If the balance of Work in Process at October 31 is $21,000, what was the amount of factory overhead applied in October by Bri? a. $63,300 b. $21,300 c. $42,300 d. $11,300 42. CK Venkat Chemicals had incurred labor costs incurred on account during this period. The amount was $225,000 including $195,000 for production orders and $30,000 for general factory use. In addition, factory overhead applied to production was $17,000. Which of the following entries will CK Venkat use to record the factory overhead applied to production. a. Work in Process 30,000 Factory Overhead b. Factory Overhead 30,000 17,000 Work in Process c. Work in Process Factory Overhead d. Factory Overhead Accounts Payable 17,000 17,000 17,000 30,000 30,000 43. Use the Direct Method for this problem. Baltimore Tourist Trinkets had cost of merchandise sold during the 2014 at $50,000. Merchandise inventories were $12,500 and $10,500 On January 1 2014 and December 31, 2014 respectively. Accounts payable were $6,000 and $5,000 at the beginning and end of the year, respectively. Cash payments for merchandise total are a. $49,000 b. $47,000 c. $51,000 d. $53,000 44. Patriots Inc. had equipment with an original cost of $50,000 and accumulated depreciation of $20,000. This was sold at a loss of $7,000. As a result of this transaction, Patriot's cash would a. increase by $23,000 b. decrease by $7,000 c. increase by $43,000 d. decrease by $30,000 45. Littleton Co. can further process Product J to produce Product D. Product J is currently selling for $21 per pound and costs $15.75 per pound to produce. Product D would sell for $35 per pound and would require an additional cost of $8.75 per pound to produce. What is the differential revenue of producing Product D? a. $7 per pound b. $8.75 per pound c. $14 per pound d. $5.25 per pound The End! Answer sheet on next page ACCT 221 Final Exam Answer Sheet Name: (3 point deduction if no name is provided here) Part 1(Do Not show your computations here in Part 1. Computations must be shown in Part 2 of this Answer Sheet) Example: 1b 2c 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Part 2: Supporting Computations ( 5 point penalty if computations are not shown here) Please show your supporting computations here below on all of the mc questions that require computations. Eg: if your answer to a question is 10 and you had to add 5+5=10 to get to the answer, then I need to see that. Please cross reference your supporting computations with the appropriate question number. These computations are an integral part of this quiz. Failure to include them here will result in a significant loss of points. ACCT 221 Quiz 5 Please answer in the Answer Sheet provided at the end of the Question booklet. Submit the Answer Sheet only through Final Exam Assignment link in LEO. Do NOT submit the entire Question Booklet. If you do so, I will levy a 5 point deduction. This quiz is not timed in order to alleviate the pressure on you. You may print out the Question booklet, work on the questions offline I will accept late work up to 4 hours after the deadline with an automatic 10 point penalty. After that, you will receive a zero for this exam unless there are documented extenuating circumstances 1) Alaska Company sold 2,000 units in October at a price of $35 per unit. The variable cost is $20 per unit. Calculate the total contribution margin. A) $70,000 B) $30,000 C) $40,000 D) $20,000 2) Mendez Company provides the following information about its product: Targeted operating income Selling price per unit Variable cost per unit Total fixed costs $50,000 6.00 1.50 125,000 Mendez has a contribution margin ratio of A) 75% B) 100% C) 125% D) 25% 3) Trang Company provided the following manufacturing costs for the month of June. Direct labor cost Direct materials cost Equipment depreciation (straight-line) Factory insurance Factory manager's salary Janitor's salary Packaging costs Property taxes Calculate Trang's total fixed costs. A) $311,600 $136,000 80,000 24,000 19,000 12,800 5,000 18,800 16,000 B) $52,800 C) $71,600 D) $76,800 4) The utility bill for Shobita Legal Services LLC consists of both fixed and variable costs. Using the 4-month data below apply the high-low method to answer the question. January February March April Minutes Total Bill 460 $3,000 200 $2,675 160 $2,625 300 $2,800 If Shobita uses 380 minutes in May, how much will the total bill be? A) $2,425 B) $2,478 C) $2,900 D) $3767 5) Sangeeta Industries is considering replacing an aging Evaporator that is presently used in its production process. The following information is available: Original cost Remaining useful life in years Current age in years Book value Current disposal value in cash Future disposal value in cash (in 5 years) Annual cash operating costs Old Replacemen Evaporator t Machine $55,000 $45,000 3 3 3 0 $33,000 $9,000 $0 8,500 $0 $3,500 Sunk costs would amount to A) $55,000 B) $33,000 C) $9,000 D) $45,000 6) Vatsala Company discloses its financial information as follows: Income from operations Interest expense Gains/(losses) on sale of equipment Net income Beginning assets Ending assets $200,000 45,000 (2,500) 152,500 2,600,000 3,200,000 Calculate return on investment based on the above information. A) 6.3% B) 5.3% C) 6.9% D) 7.2% 7) Venkat Inc. manufactures and sells pens for $5 each. Inez Corp. has offered Venkat Inc. $3 per pen for a one-time order of 3,500 pens. The total manufacturing cost per pen, using traditional costing, is $1 per unit, and consists of variable costs of $0.85 per pen and fixed overhead costs of $0.15 per watch. Assume that Venkat Inc. has excess capacity and that the special order would not adversely affect regular sales. What is the change in operating income that would result from accepting the special sales order? A) increase of $7,000 B) decrease of $7,000 C) increase of $7,525 D) decrease of $7,525 8) Mikhail Building Supplies Co. has a sales office which sells steel beams to property developers. It discloses its financial information as follows . Calculate the flexible budget variance for the steel beams? A) $1,850 U B) $3,000 F C) $10,000 U D) $1,500 F 9. Calculate the inventory turnover using the following data for the current year 2014 Net sales on account during 2014 Cost of merchandise sold during 2014 $ 500,000 330,000 Accounts receivable, Jan 1, 2014 45,000 Accounts receivable, December 31, 2014 35,000 Inventory, Jan 1, 2014 90,000 Inventory, December 31, 2014 a. 3.3 b. 8.3 c. 3.7 110,000 d. 3.0 10) Benjamin Nautical Company has several divisions which are investment centers. Data for the Sail Boat Division and the Yacht Trailer Division are shown here: Operating income Total assets at Jan 1 Total assets at Dec 31 Sail Boat Division $90,000 $670,000 $710,000 Yacht Division $36,000 $230,000 $220,000 Which of the following statements would be the most meaningful interpretation of this data? A) Performance of Sail Boat Division is better than that of Yacht Division because Sail Boat Division has higher assets. B) Yacht Division uses its assets more efficiently than Sail Boat Division because it has higher ROI. C) Sail Boat Division shows more efficient use of assets than Yacht Division because it has higher operating income. D) Sail Boat Division is more financially successful than Yacht Division because it shows an increase in assets 11. C K Venkat Chemicals estimates for July are as follows: Estimated inventory (units), July 1 8,500 Desired inventory (units), July 31 10,500 Expected sales volume (units), July 76,000 For each unit produced, the direct materials needed are: Direct material A ($5 per lb.) 3 lbs. Direct material B ($18 per lb.) 1/2 lb. Calculate the total direct materials purchases of materials A and B (assuming no beginning or ending material inventory) required for July productions: a. $1,080,000 for A; $648,000 for B b. $1,080,000 for A; $1,296,000 for B c. $1,170,000 for A; $702,000 for B d. $1,125,000 for A; $675,000 for B 12.Jackson Company had a finished goods inventory of 55,000 units on January 1. It's 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 Jackson Company wishes to maintain a desired ending finished goods inventory of 20% of the following months sales. Calculate the budgeted production for January? a. 236,000 b. 181,000 c. 200,000 d. 219,000 13. Nebraska Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are $240,000, $300,000, and $420,000, respectively, for September, October, and November. The company expects to sell 20% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month of the sale, 25% in the month following the sale, and the remainder in the following month. Calculate the cash collections in September from accounts receivable: a. $240,000 b. $134,400 c. $192,000 d. $168,000 14.Florida Company opened its doors on March 31 of the current year. Projected manufacturing costs for the first three months of business are $156,800, $195,200, and $217,600, respectively, for April, May, and June. Depreciation, insurance, and property taxes represent $28,800 of the estimated monthly manufacturing costs. Insurance was paid on March 31, and property taxes will be paid in November. Three-fourths of the remainder of the manufacturing costs are expected to be paid in the month in which they are incurred, with the balance to be paid in the following month. Calculate the cash payments for manufacturing in the month of June : a. $14,600 b. $188,800 c. $217,600 d. $183,200 15.CK Venkat Chemicals releases the following data related to direct materials costs for November: Actual costs 4,600 pounds at $5.50 Standard costs 4,500 pounds at $6.00 Calculate the direct materials price variance? a. $2,250 favorable b. $2,250 unfavorable c. $2,300 favorable d. $1,700 unfavorable 16 CK Venkat Chemicals releases the following data relate to direct materials costs for November: Actual costs 4,600 pounds at $5.50 Standard costs 4,500 pounds at $6.00 Calculate the direct materials quantity variance? a. $550 unfavorable b. $600 favorable c. $550 favorable d. $600 unfavorable 17. CK Venkat Chemicals releases the following data related to direct labor costs for February: Actual costs 7,700 hours at $13 Standard costs 7,000 hours at $9 Calculate the direct labor time variance? a. $9,100 favorable b. $9,100 unfavorable c. $6,300 unfavorable d. $6,300 favorable 18. CK Venkat Chemicals releases the following data relate to direct labor costs for February: Actual costs 7,700 hours at $13 Standard costs 7,000 hours at $9 Calculate the direct labor rate variance? a. $28,000 favorable b. $28,000 unfavorable c. $30,800 favorable d. $30,800 unfavorable 19. The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows: Standard Costs Fixed overhead (based on 10,000 hours) 3 hours @ $.80 per hour Variable overhead 3 hours @ $2 per hour Actual Costs Total variable cost, $18,000 Total fixed cost, $8,000 The amount of the factory overhead volume variance is: a. $2,000 favorable b. $2,000 unfavorable c. $2,500 unfavorable d. $0 20.The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows: Standard Costs Fixed overhead (based on 10,000 hours) 3 hours @ $.80 per hour Variable overhead 3 hours @ $2 per hour Actual Costs Total variable cost, $18,000 Total fixed cost, $8,000 The amount of the total factory overhead cost variance is: a. $2,000 favorable b. $5,000 unfavorable c. $2,500 unfavorable d. $0 21. Balance sheet and income statement data indicate the following: Bonds payable, 10% (issued 1988 due 2012) Preferred 5% stock, $100 par (no change during year) Common stock, $50 par (no change during year) Income before income tax for year $1,000,000 300,000 2,000,000 350,000 Income tax for year 80,000 Common dividends paid 50,000 Preferred dividends paid 15,000 Based on the data presented above, what is the number of times bond interest charges were earned ? a. 3.7 b. 4.4 c. 4.5 d. 3.5 22) Kim Corporation has two major divisions: Northern Products and Southern Products. It provides the following information for the year 2014 Sales revenue Operating income Average total assets Target rate of return Northern Products Southern Products Division Division $140,000 $1,040,000 $46,400 $220,000 $300,000 $5,540,000 14.0% 14.0% Calculate the residual income for the Northern division. A) $5,500 B) $4,400 C) $2,500 D) $1,800 23) New York Inc. Inc. has a division that manufactures a component that sells for $150 and has a variable cost of $45. Another division of the company wants to purchase the component. Fixed cost per unit of component is $25. What is the minimum transfer price? Assume the division is operating at capacity? A) $150 B) $45 C) $55 D) $140 24) New York Inc. Inc. has a division that manufactures a component that sells for $150 and has a variable cost of $45. Another division of the company wants to purchase the component. Fixed cost per unit of component is $25. What is the maximum transfer price if the division is operating below its capacity? A) $70 B) $170 C) $150 D) $30 25) Fletcher Supplies Company has a sales office which sells concrete culvert pipe to property developers. The sales office is a revenue center and must prepare a monthly performance report. It has provided the following information. How much is the flexible budget variance for the 40 inch pipe? A) $1,850 U B) $3,000 F C) $10,000 U D) $1,500 F 26) Fletcher Supplies Company has a sales office which sells concrete culvert pipe to property developers. The sales office is a revenue center and must prepare a monthly performance report. Below is the partially completed performance report. The company uses management by exception to address flexible budget variances. On which variance would the company focus first? A) 40 inch B) 36 inch long C) 36 inch short D) 32 inch 27) Chesapeake Company provided the following manufacturing costs for the month of June. Direct labor cost Direct materials cost $136,000 80,000 Equipment depreciation (straight-line) Factory insurance Factory manager's salary Janitor's salary Packaging costs Property taxes 24,000 19,000 12,800 5,000 18,800 16,000 From the above information, calculate Chesapeake's total variable costs. A) $311,600 B) $62,300 C) $234,800 D) $38,400 28) Da Silva Company has variable costs of $0.60 per unit of product. In August, the volume of production was 24,000 units and units sold were 20,000. The total production costs incurred were $31,900. What are the fixed costs per month? A) $17,500 B) $19,900 C) $9,600 D) $14,400 29. Based on the following data, what is the quick ratio, rounded to one decimal point? Accounts payable Accounts receivable Accrued liabilities $ 30,000 65,000 7,000 Cash 20,000 Intangible assets 40,000 Inventory 72,000 Long-term investments 100,000 Long-term liabilities 75,000 Marketable securities 36,000 Notes payable (short-term) 20,000 Property, plant, and equipment Prepaid expenses a. 2.4 b. 3.4 625,000 2,000 c. 2.1 d. 1.5 30.A company with working capital of $400,000 and a current ratio of 2.5 pays a $75,000 short-term liability. The amount of working capital immediately after payment is a. $475,000 b. $325,000 c. $400,000 d. $75,000 31. Based on the following data for the current year, what is the inventory turnover? Net sales on account during year $ 500,000 Cost of merchandise sold during year 330,000 Accounts receivable, beginning of year 45,000 Accounts receivable, end of year 35,000 Inventory, beginning of year 90,000 Inventory, end of year 110,000 a. 3.3 b. 8.3 c. 3.7 d. 3.0 32.The Rand Corporation began the current year with a retained earnings balance of $25,000. During the year, the company corrected an error made in the prior year. The error was due to the accountant failing to record depreciation expense of $3,000 on equipment. Also, during the current year, the company earned net income of $12,000 and declared cash dividends of $5,000. Compute the year end retained earnings balance. a. $29,000 b. $35,000 c. $39,000 d. $45,000 33. Lazarus Consulting Services has 100,000 authorized shares of $4 par common stock issued 40,000 shares at $8. Subsequently, Lazarus declared a 2% stock dividend on a date when the market price was $11 a share. What is the amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend? a. $3,200 b. $6,400 c. $4,800 d. $8,800 34. Ignatius the Investor's Income for the period would not be affected by a. interest received on a temporary investment in bonds b. dividends received on a long-term investment in stock where the investor owns 10% of the investee's stock c. dividends received on a long-term investment in stock where the investor owns 30% of the investee's stock d. interest received on a long-term investment in bonds 35. Phan Company owns 28% of the common stock of San Company and accounts for the investment using the equity method. Assuming that Phan Company purchased the stock several years ago, the balance in the investment account would be equal to the cost of the a. investment b. investment plus Phan's share of San's net income earned since the investment was purchased c. investment plus the total amount of dividends Phan has received from San since the investment was purchased d. investment plus Phan's share of San's net income earned since the investment was purchased minus the total amount of dividends Phan has received from San since the investment was purchased 36.The Krebhel Company issued $100,000 of 12% bonds on May 1, 2006 at face value. The bonds pay interest semiannually on January 1 and July 1. The bonds are dated January 1, 2006, and mature on January 1, 2010. The total interest expense related to these bonds for the year ended December 31, 2006 is a. $2,000 b. $4,000 c. $8,000 d. 12,000 37.When the market rate of interest was 12%, Patel Corporation issued $1,000,000, 11%, 10-year bonds that pay interest annually. The selling price of this bond issue was a. $ 321,970 b. $1,000,000 c. $ 943,494 d. $621,524 38.When the market rate of interest was 11%, Shah Corporation issued $100,000, 8%, 10-year bonds that pay interest semiannually. Using the straight-line method, the amount of discount or premium to be amortized each interest period would be a. $4,000 b. $896 c. $17,926 d. $1,793 39. Bri Cheese Products Co. purchased 1,000 shares of its $5 par common stock at $10 and subsequently sold 500 of the shares at $20. What is the amount of revenue realized by Bri from the sale? a. $0 b. $5,000 c. $2,500 d. $10,000 40.Bri Cheese Products Co. purchases 10,000 shares of its own $10 par common stock for $25 per share, recording it at cost. What will be the effect on Bri's total stockholders' equity? a. increase, $100,000 b. increase, $250,000 c. decrease, $100,000 d. decrease, $250,000 41. Below are selected T accounts from Bri Cheese Dairy with incomplete information: Work in Process Oct. 1 Balance 20,000 | Oct. 31 Goods 31 Direct | finished materials 96,700 | 31 Direct | labor 201,000 | 31 Factory overhead | X| Finished Goods Oct. 1 Balance 52,000 | 31 Goods | finished 360,000 | X If the balance of Work in Process at October 31 is $21,000, what was the amount of factory overhead applied in October by Bri? a. $63,300 b. $21,300 c. $42,300 d. $11,300 42. CK Venkat Chemicals had incurred labor costs incurred on account during this period. The amount was $225,000 including $195,000 for production orders and $30,000 for general factory use. In addition, factory overhead applied to production was $17,000. Which of the following entries will CK Venkat use to record the factory overhead applied to production. a. Work in Process 30,000 Factory Overhead b. Factory Overhead 30,000 17,000 Work in Process c. Work in Process Factory Overhead d. Factory Overhead Accounts Payable 17,000 17,000 17,000 30,000 30,000 43. Use the Direct Method for this problem. Baltimore Tourist Trinkets had cost of merchandise sold during the 2014 at $50,000. Merchandise inventories were $12,500 and $10,500 On January 1 2014 and December 31, 2014 respectively. Accounts payable were $6,000 and $5,000 at the beginning and end of the year, respectively. Cash payments for merchandise total are a. $49,000 b. $47,000 c. $51,000 d. $53,000 44. Patriots Inc. had equipment with an original cost of $50,000 and accumulated depreciation of $20,000. This was sold at a loss of $7,000. As a result of this transaction, Patriot's cash would a. increase by $23,000 b. decrease by $7,000 c. increase by $43,000 d. decrease by $30,000 45. Littleton Co. can further process Product J to produce Product D. Product J is currently selling for $21 per pound and costs $15.75 per pound to produce. Product D would sell for $35 per pound and would require an additional cost of $8.75 per pound to produce. What is the differential revenue of producing Product D? a. $7 per pound b. $8.75 per pound c. $14 per pound d. $5.25 per pound The End! Answer sheet on next page ACCT 221 Final Exam Answer Sheet Name: (3 point deduction if no name is provided here) Part 1(Do Not show your computations here in Part 1. Computations must be shown in Part 2 of this Answer Sheet) Example: 1b 2c 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Part 2: Supporting Computations ( 5 point penalty if computations are not shown here) Please show your supporting computations here below on all of the mc questions that require computations. Eg: if your answer to a question is 10 and you had to add 5+5=10 to get to the answer, then I need to see that. Please cross reference your supporting computations with the appropriate question number. These computations are an integral part of this quiz. Failure to include them here will result in a significant loss of points