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ACC 2312 Mid Term Exam Question #1: A Company reports the following costs and expenses in August. Factory utilities $ 16,500 Depreciation on factory equipment 12,650 Depreciation on delivery trucks 3,800 Indirect factory labor 48,900 Indirect materials 70,800 Direct materials used 157,600 Factory manager's salary 8,000 Direct labor Sales salaries Property taxes on factory building Repairs to office equipment Factory repairs Advertising Office supplies used $79,100 51,400 2,500 1,300 2,000 23,000 2,640 Instructions From the information, determine the total amount of: (a) Manufacturing overhead. (b) Product costs. (c) Period costs. Question #2: A Corporation incurred the following costs while manufacturing its product. Materials used in product $ 90,000 Depreciation on plant 60,000 Property taxes on store 7,500 Labor costs of assembly-line workers 110,000 Factory supplies used 23,000 Advertising expense Property taxes on plant Delivery expense Sales commissions Salaries paid to sales clerks $45,000 19,000 21,000 35,000 50,000 Work-in-process inventory was $22,000 at January 1 and $15,500 at December 31. Finished goods inventory was $65,000 at January 1 and $55,600 at December 31. Instructions (a) Prepare a formal schedule of the Cost of Goods Manufactured. (b) Compute cost of goods sold. Question #3: M&H, Inc. allocates overhead at $9 per direct labor hour. Job X260 required 4 boxes of direct materials at a cost of $30 per box and took employees 10 hours to complete. Employees earn $15 per hour. Instructions Compute the total cost of Job X260. Question #4: A Company estimates that the factory overhead for the following year will be $1,250,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 50,000 hours. The total machine hours for the year was 54,300. The actual factory overhead for the year was $1,375,000. a) Determine the total factory overhead amount applied. b) Calculate the over or under applied amount for the year. c) Prepare the journal entry. Question #5 Below are the production data for Department A1 for the first month of operation: Costs charged to Department A1: Materials $12,000 Labor 2,800 Overhead 12,400 During the first month of operations, 4,000 units were started into production; 3,500 units were transferred out; and the remaining 500 units are 100% completed with respect to materials and 60% complete with respect to conversion costs. Instructions Compute the following: (a) Unit materials cost. (b) Equivalent units of conversion costs. (c) Unit conversion cost. (d) Total cost of 500 units in process at end of month. (e) Total cost of 3,500 units transferred out. Question #6: Birds and Such, Inc. manufactures birdhouses and uses an activity-based costing system. The following information is provided for the month of May: Activity Materials handling Assembling Packaging Estimated Indirect Activity Costs $ 3,500 $12,000 $5,750 Allocation Base Number of parts Number of parts Number of birdhouses Estimated Quantity of Allocation Base 5,000 parts 5,000 parts 1,250 birdhouses Each breadbox consists of 4 parts, and the direct materials cost per birdhouse is $7.00. What is the cost of materials handling and assembling per breadbox? Question #7: The Trojan Company sells a product for $120 per unit. The variable cost is $40 per unit, and fixed costs are $270,000. Determine the (a) break-even point in sales units, and (b) break-even points in sales units if the company desires a target profit of $36,000. Question #8: Active Kids manufactures Children's bicycles. It has fixed costs of $5,360,000. Active Kid's sales mix and contribution margin per unit are shown as follows: Basic Cruiser Trail Sales Mix 20% 55% 25% Contribution Margin $120 $ 60 $ 40 Instructions Compute the number of each type of bicycle that the company would need to sell in order to break even under this product mix