Please answer 32 multiple answers from the question paper expect 32, 33, 35, 36, 37, 38, 39, 40 from managerial accounting
Nmn : ACC202 - Management Accounting: FINAL EXAM - 'mnprvllmmive Multi Ie Choice ucstiggg " . fl . 4 . Part I - Instructions: Circle the letter that correr ) ) in to the cmrrtzt tvvu [or (at?!) (t)i the following multiple-choice questions. Show ziulguk-ulntinng when: itqnncd HI on (yr 0 receive credit for your answers. THE FOLOWING iNFORMA'ILOlL/flfiji(IRS-"ltit)! ilifl'l'lthS l 'i Hm )I J( iii 31 Peterson Company reported the following: Totai Manufacturing Costs $2,()()(),()()() Totai Units Manufactured 5(),()()t) Total Units Sold 47,()()() Uni :; (ng ."575 Per Unit Beginning Inventory 0 Units 1. What is the average manufacturing cost per unit? a. $40.00 b. $42.55 c. $39.95 d. $41.95 2. What is the amount ofending finished goods inventory? a. $125,000. b. $120,000 0. $135,000. d. $105,000. 3. What is the amount of gross margin? a. $1,750,000. b. $3,525,000. 0. $5,405,000. d. $1,645,000.. For a printing company, ficd as a the cost of paper is classi a. direct materials cost. l b. direct manufacturing labor cost: c. manufacturing overhead cost. d. period cost. . Period costs include only fixed costs. seldom influence financial include the cost of selling, delivering, should be treated as an indirect cost costs. success or failure. and after- rather than as sales support for customers. a direct manufacturing Pr???) . Prime costs include manufacturing labor costs. a. direct materials and direct rhead costs. b.' direct manufacturing labor and manufacturing ove 0. direct materials and manufacturing overhead costs. d. only direct materials. . The following information pertains to the Cannady Corporation: Beginning work-in-process inventory $50,000 Ending work-in-process inventory $48,000 Beginning finished goods inventory $180,000 Ending finished goods inventory $l95,000 Cost of GOods Manufactured $l ,220,000 What is cost of goods sold? a. $l,235,000. b. $1,222,000. 0. $l,218,000. d. $l,205,000jI'HH mr 1 owmp .,. f'.' " """"**'-L.L,.km I . r- ' ' JAUWW'GHH'..i,1..L{Lm/IAIION APPLIES m Harding Company reports the following information: IIECginning l'inishcd Goods Inventory, l/l/2013 S80,000 mdmg l'mishcd Goods Inventory, 12/31/2013 $67,000 Cost of Goods Sold $Z7O,OOO Sales Revenue $500,000 Operating Expenses $145,000 9. What is the cost of goods manufactured for 2013? a. 5230,ooo. b, 5257,000. c. 5283,ooo. d. 5355,000. 10. What is the gross margin for 2013? a. 'S283,000 b. S355,000 c. 3230,000 d. 3257,000 1 1. What is the operating income for 2013? a. 385,000. b. 3112,000. c. S62,000. d. S75,000. THE FOLLOWlNG INFORMATION APPLIES TO QUESTIONS 12. LTLRLQLLGELIL Ruben intends to sell his customers a Special round-nip airline ticket package. He is able from the airline carrier for 5150 each. The round-nip tickets will to purchase the package be sold for 3200 each and the airline intends to reimburse Ruben for any unsold ticket packages. Fixed costs include 55,000 in advertising costs. 12. What is the contribution margin per ticket package? a. $50 b. 5100 c, 5150 d. 5200- IS ' HOW many ticket packages will Ruben need to sell to breakeven? a- 34 packages b- 50 packages 3- 367 packages b. 434 packages C LIOO packages d 1,3 OO packages Bauer Manufacturino Company, D allocate manufacturing overhead are allocated on the basis of machine-hours in the Ma the basis of direct labor-hours in the Assembl 2010, the following estimates were provided for the coming year: Inc. uses departmental cost driver rates to costs to products. Manufacturing overhead costs chining Department and on y Department. At the beginning of - Machinino Assembly Direct Labor Hours 30,000 60,000 Machine Hours 80,000 20,000 Direct Labor Cost . ' 5500,000 $900,000 * Manufacturing Overhead Costs S420,000 . 3240,000 The accounting records of the company show the following data for Job No. 316. Machinino Assemblv Direct Labor Hours . . 120 20 Machine Hours 4 69 37 Dixmt Materials Costs 5300 3-00 Direct Labor Costs 5100 840016.l'or Bauer Mulmtlu'tmiup. ('uuummu "Wu "'"t' '" nw "mm"! ' ("ahead cuf'lflumvunu In". 'N nw Manhlntuu Usputllltrnl "In! Art Department, respectix el). '.' u. SUM); 52425. b. 5420; iii-LOU. c. 3535; SHAN). d. 3525; Stun. 17. XVhat amount ot'munuthetuxing uwrlwml ennln will he HHUt'Hit'ti to Jul: No. "it! a. $439. b. 3502. c. 3595. d. 3532. 18. What'are the total numutheturilu: costs nt'Juh No. CHO? a. -$l,715. b. $l,880. c. $l,595. d. $1,750. 19. Traditional cost systems distort product costs because a. they do not know how to identify the appropriate units. b. competitive pricing is ignored. 0. they emphasize financial accounting requirements. d. they apply average support costs to each unit ofproduet. 20. Which of the following is NOT a basic step that is used to determine the cost of goods using Activity Based Costing? a. Identify and classify the activities related to the eompany's products. b. Calculate a cost-driver rate for each activity. 0. Classify all costs into variable and fixed cost behavior. ' d. r Assign activity costs to products. 21. If production volume increases within the relevant range, variable costs per unit will I and total fixed costs will --'-----------------. a. Decrease; Decrease. b. Increase; Not Change. 0. Not Change; Increase. d. Not Change; Not Change.22. An increase in the production volume within the relevant range will result in: a. An increase in the fixed costper unit. b. A propOrtionate increase in total" fixed costs. c. No change in the fixed cost per unit. d. A decrease in the fixed cost per unit. 23. How would an increase in fixed manufacturing costs and {variable selling COS", respectively, affect the contribution margin? a Not affect; Not affect. b. Decrease; Decrease. c. Decrease; Not Affect. d. Not Affect; Decrease. 24 ' is (are) subtracted from sales to calculate contribution margin. a. variable manufacturing costs. - b. variable marketing costs. c. fixed manufacturing costs. d. both (a) and (b). 25. . isi(are) subtracted from sales to calculate gross margin a. variable manufacturing posts. b. variable marketing costs. 0. fixed manufacturing costs. 'd. both (a) and (c).So. The . IS the discount rate that cquatcs the present value Of a the present value of the project's cash outflows. prQi'TI's cash infiows "ith 3. Ne! present value. l'. l'ayback period." c. Internal nm: of return. cl. 'ezum on investment. :.". ARC Compgmv is consider-inc th ' . ' c 8 purchase of a new machine for S76,000. The mclllfle Would generate a net cash inflow of 523,214 per year for 5 years' At the emi or 5 years. the machine would have no salvage Value- The companys COSt Of capital is 12 Percent. The c0mpany USGS Straight'line depreciation The present value heron: ofann'Jifb' Of S l .00 for different rates of return are as follows: Year not me - 16% 18% .037 2.914 2.798 2.690 nos 3.433 3.274 3.127 111 3.889 3.685 3.498 '1' 'l, rc .. 3 a J 4. "hat is the net present value of the investment? THE F OLLOXV ING INFORMATION APPLIES TO UESTIONS 28 "l'l'iROUGH 30. The Swiss Cleaning Manufacturing Company, inc. mzmufiictures home cleaning products. The company has two divisions, Bleach and Clemiser. Because of different accounting methods and inflation rates, the mummy is considering multiple evaluation measures. The following information is pmxided for 2013: Bleach Division Cleanser Division ASSETS: Book Value $225,000 ' S450,000 Current Value $3 O0,000 ' $250,000 INCOME: . v i am Value $150,000 8100,000 Current Value $155,000 - 3105,000 The co / y is currently using a 15% required rate of return.n book . - based 0 QH. What are Bleach and Cleanser's respective return on mvestment value? in. 0.22 and 0.67 l). 0.42 and 0.52 e. 0.52 and 0.42 d. 0.67 and 0.22 29. What are Bleach and Cleanser's respective return on investment based on current values? (I. 0.22 and 0.67 b. 0.42 and 0.52 e. 0.52 and 0.42 cl. 0.67 and 0.22' 30. What are Bleach and Cleanser's residual incomes based on book values, respectively? a. $116,250 and $32,500. b. $l l0,000 and $67,500. 0. $67,500 and $110,000. d. $37,500 and $116,250. 31. Shirt Company wants to purchase a new cutting machine for its sewing plant. The investment is expected to generate annual cash inflows of $300,000. The required rate of return is 12% and the current machine is expected to last for four years. What is the maximum dollar amount Shirt Company would be Willing to spend for the machine, assuming its life is also four years. (What is the value of this. equipment)? a. 3507,000 to. $720,600 0. $791,740 d. $911,100fi ' - 2. The Zw - : Fm" Corporation has recently Purchased a new machine for its factory Operations at a cost f$9 . in mnual h 0 21,25:O. The investment is expected to generate $250,000 Th; Id flows for a Pfined of six years. The required rate of return is 14%. h 0' machine has a remaining life of six years. The new machine is expected L. "I'le zero Value at the end of the six-year period. The disposal value of the old machine at the time of replacement is zero. What is the internal rate of return? a. b. ox ox 5 6 l l 17 IS '9 so xO xO ON. ox. c. d. 33. Investment A requires a net investment of $800,000. The required rate of return is 296 for the four-year annuity. What are the annual cash infl'ows 1f the net present value equals zero? (Rounded) a. SlS9,4S3 b. S263,418 c. 3274,84S d. SZ95,733 34. The Keego Company is planning a $200,000 equipment investment that has an estimated five-year life with no estimated salvage value. The company has projected the following annual cash flows for the investment. Yew Cash Inflows 1 SI 20,000 60,000 - 40,000 4 40,000 5 40.000 To-tal S; 3 OO= 000 a. 0.75 years b. 1.67 years c. 4.91 years d. 2.50 years 35. Budgeting is used to help companies: a. plan to better satisfy customers b. anticipate potential problems 0. focus on opportunities d. all ofthese. answers are correct.36. A master budget: includes only financial aspects of a plan and excludes non-financial aspects is an aid to coordinating what needs to be done to implement a plan includes broad expectations and visionary results should not be altered after it has been agreed upon II. b. c. d. 37. Budgeting provides all of the following except: a. a means to communicate th members. b. Support for the management 0. A means/to anticipate problems d. An ethical framework for decision making functions of planning and coordination 38. Building budgetary slack includes: a. overestimating budgeted revenues b. underestirnating budgeted costs 0. making budgeted targets more easily achievable d. all of these answers are correct. 39. Management by exception is the practice of concentrating on a. the master budget v b.v areas not operating as anticipated 0. favorable variances d. unfavorable variances 40. A variance is: a. the gap between an actual result and a benchmark amount b. the required number of units for one standard output 0. the difference betWCen an actual result and a budgeted amount d. the difference between a budgeted amount and a standard amountQuestion 1 Question 2 Question 3 Question Question Question Question Question Question Question Question 4 5 6 7 8 9 10 11 40.00 A 120000 B 1645000 d Direct Material Inventory,Work In progress inventory and Finished goods Direct Material Cost Includes the cost of selling,delivering,and after sales support for Customer Direct material and Direct manufacturing Labor Cost d a c a 1205000 d 257000 b 230000 c 85000 a Question 1 Question 2 Question 3 Question Question Question Question Question Question Question Question Question Question Question Question Question 4 5 6 7 8 9 10 11 12 13 14 15 16 Question Question Question Question Question 16 17 18 19 20 40.00 A 120000 B 1645000 d Direct Material Inventory,Work In progress inventory and Finished goods Direct Material Cost Includes the cost of selling,delivering,and after sales support for Customer Direct material and Direct manufacturing Labor Cost d a c a 1205000 d 257000 b 230000 c 85000 a 50 a 100 c 1300 d 6250 A 5.25 4.00 $5.25 ,4.00 they apply average support costs to each unit of product Classify all cost into variable and fixed cost behaviour d 595 c 1595 c d c Question 1 Question 2 Question 3 Question Question Question Question Question Question Question Question Question Question Question Question Question 4 5 6 7 8 9 10 11 12 13 14 15 16 40.00 A 120000 B 1645000 d Direct Material Inventory,Work In progress inventory and Finished goods d Direct Material Cost a Includes the cost of selling,delive c Direct material and Direct manufaca 1205000 d 257000 b 230000 c 85000 a 50 a 100 c 1300 d 6250 A 5.25 4.00 Question Question Question Question Question Question Question Question Question Question Question Question 16 17 18 19 20 21 22 23 24 25 26 27 $5.25 ,4.00 d 595 c 1595 c they apply average support costs t d Classify all cost into variable and c No change , No change D A decrease in fixed cost per unit d No effect,Decrease d Variable Manufacturing Cost a Both (a) and d Internal Rate of Return c Intial Investment Question 27 -76000 23214 NPV 7686.47 d Question 28 Bleach Question 28 .67 and .22 Question 29 Bleach Cleanser 0.67 0.22 answer Cleanser 0.52 0.42 Question 30 Bleach Cleanser Expected return Income Residual Income Question 30 33750 150000 116250 116250 and 32500 67500 100000 32500 a PV factor NPV 1 -76000 3.605 83686.47 7686.47 Question 1 Question 2 Question 3 Question Question Question Question Question Question Question Question Question Question Question Question Question 4 5 6 7 8 9 10 11 12 13 14 15 16 40.00 A 120000 B 1645000 d Direct Material Inventory,Work In progress inventory and Finished goods d Direct Material Cost a Includes the cost of selling,delive c Direct material and Direct manufaca 1205000 d 257000 b 230000 c 85000 a 50 a 100 c 1300 d 6250 A 5.25 4.00 Question Question Question Question Question Question Question Question Question Question Question Question 16 17 18 19 20 21 22 23 24 25 26 27 $5.25 ,4.00 d 595 c 1595 c they apply average support costs t d Classify all cost into variable and c No change , No change D A decrease in fixed cost per unit d No effect,Decrease d Variable Manufacturing Cost a Both (a) and d Internal Rate of Return c Intial Investment -76000 23214 NPV Question 27 7686.47 d Question 28 Bleach Question 28 .67 and .22 Question 29 Bleach Question 30 Cleanser 0.67 0.22 answer Cleanser 0.52 0.42 Bleach Expected return Income Residual Income Question 30 116250 and 32500 Question 31 Present Value of Cash flow Answer Cleanser 33750 67500 150000 100000 116250 32500 a 300000*3.037 911100 d Question 32 -921250 250000 250000 250000 250000 250000 250000 16% 16% b IRR Question 32 Question 33 800,000=Cashflow/3.037 263417.85 d Answer question 34 Year Cumlative Cash flow -200000 -200000 120000 -80000 60000 -20000 40000 20000 40000 60000 40000 100000 0 1 2 3 4 5 Payback Period ==+(20000/40000 question 34 question 35 2.50 Years 2.50 Years All of these answer are correct d Workings =2000000/50000 = +(50000-47000)*40 =+(47000)*(75-40) =+(1220000+180000-195000) 270000+67000-80000 500000-270000 (230000-145000) 200-150 5000/50 =(5000+60000)/50 25000*((200-150)/200) =420000/80000 =240000/60000 =5.25*(60)+4*(70) =300+200+595+100+400 PV factor NPV 1 -76000 3.605 83686.47 7686.47 =150000/225000 =100000/450000 =155000/300000 =105000/250000 Bleach 150000-33750 Cumlative Cash flow Cleanser 33750 67500 100000-67500 Question 1 Question 2 Question 3 Question Question Question Question Question Question Question Question Question Question Question Question Question 4 5 6 7 8 9 10 11 12 13 14 15 16 40.00 A 120000 B 1645000 d Direct Material Inventory,Work In progress inventory and Finished goods d Direct Material Cost a Includes the cost of selling,delive c Direct material and Direct manufaca 1205000 d 257000 b 230000 c 85000 a 50 a 100 c 1300 d 6250 A 5.25 4.00 Question Question Question Question Question Question Question Question Question Question Question Question 16 17 18 19 20 21 22 23 24 25 26 27 $5.25 ,4.00 d 595 c 1595 c they apply average support costs t d Classify all cost into variable and c No change , No change D A decrease in fixed cost per unit d No effect,Decrease d Variable Manufacturing Cost a Both (a) and d Internal Rate of Return c Intial Investment -76000 23214 NPV Question 27 7686.47 d Question 28 Bleach Question 28 .67 and .22 Question 29 Bleach Question 30 Cleanser 0.67 0.22 answer Cleanser 0.52 0.42 Bleach Expected return Income Residual Income Question 30 116250 and 32500 Question 31 Present Value of Cash flow Answer Cleanser 33750 67500 150000 100000 116250 32500 a 300000*3.037 911100 d Question 32 -921250 250000 250000 250000 250000 250000 250000 16% 16% b IRR Question 32 Question 33 800,000=Cashflow/3.037 263417.85 d Answer question 34 Year Cumlative Cash flow -200000 -200000 120000 -80000 60000 -20000 40000 20000 40000 60000 40000 100000 0 1 2 3 4 5 Payback Period ==+(20000/40000 question 34 question 35 2.50 Years 2.50 Years All of these answer are correct d Workings =2000000/50000 = +(50000-47000)*40 =+(47000)*(75-40) =+(1220000+180000-195000) 270000+67000-80000 500000-270000 (230000-145000) 200-150 5000/50 =(5000+60000)/50 25000*((200-150)/200) =420000/80000 =240000/60000 =5.25*(60)+4*(70) =300+200+595+100+400 PV factor NPV 1 -76000 3.605 83686.47 7686.47 =150000/225000 =100000/450000 =155000/300000 =105000/250000 Bleach 150000-33750 Cumlative Cash flow Cleanser 33750 67500 100000-67500
