{"id":201290,"date":"2018-09-13T22:31:13","date_gmt":"2018-09-13T22:31:13","guid":{"rendered":"http:\/\/localhost\/wordpress\/index.php\/2018\/09\/13\/acct-505-final-exam-guide-new-set-1\/"},"modified":"2018-10-24T08:59:39","modified_gmt":"2018-10-24T08:59:39","slug":"acct-505-final-exam-guide-new-set-1","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/acct-505-final-exam-guide-new-set-1\/","title":{"rendered":"ACCT 505 Final Exam Guide (New) Set 1"},"content":{"rendered":"<p>Score\u00a0248\/250\t\u00a0\tMultiple\u00a0Choice\u00a02\tShort\u00a02\tEssay\u00a07\t\u00a0\t\u00a0\tQuestion\u00a01\u00a0:\u00a0(TCO\u00a0E)\u00a0Designing\u00a0a\u00a0new\u00a0product\u00a0is\u00a0a(n)\t\u00a0\t2.\u00a0Question\u00a0:\u00a0(TCO\u00a0G)\u00a0Given\u00a0the\u00a0following\u00a0data,\u00a0what\u00a0would\u00a0ROI\u00a0be?\tSales\u00a0$70,000\tNet\u00a0operating\u00a0income\u00a0$10,000\tContribution\u00a0margin\u00a0$20,000\tAverage\u00a0operating\u00a0assets\u00a0$50,000\tStockholder&#8217;s\u00a0equity\u00a0$25,000\t\u00a0\t\u00a0\t\u00a0\t1.\u00a0Question\u00a0:\u00a0(TCO\u00a0C)\u00a0Longiotti\u00a0Corporation\u00a0produces\u00a0and\u00a0sells\u00a0a\u00a0single\u00a0product.\u00a0Data\tconcerning\u00a0that\u00a0product\u00a0appear\u00a0below.\tSelling\u00a0price\u00a0per\u00a0unit\u00a0$375.00\tVariable\u00a0expense\u00a0per\u00a0unit\u00a0$144.00\tFixed\u00a0expense\u00a0per\u00a0month\u00a0$1,686,300\tRequired:\tDetermine\u00a0the\u00a0monthly\u00a0breakeven\u00a0in\u00a0units\u00a0or\u00a0dollar\u00a0sales.\u00a0Show\u00a0your\u00a0work!\t\u00a0\t\u00a0\t2.\u00a0Question\u00a0:\u00a0(TCO\u00a0B)\u00a0Maverick\u00a0Corporation\u00a0uses\u00a0the\u00a0weighted-average\u00a0method\u00a0in\u00a0its\tprocess\u00a0costing\u00a0system.\u00a0Data\u00a0concerning\u00a0the\u00a0first\u00a0processing\u00a0department\u00a0for\tthe\u00a0most\u00a0recent\u00a0month\u00a0are\u00a0listed\u00a0below.\tWork\u00a0in\u00a0process,\u00a0beginning:\tUnits\u00a0in\u00a0beginning\u00a0work\u00a0in\u00a0process\u00a0inventory\u00a0400\tMaterials\u00a0costs\u00a0$6,900\tConversion\u00a0costs\u00a0$2,500\tPercent\u00a0complete\u00a0for\u00a0materials\u00a080%\tPercent\u00a0complete\u00a0for\u00a0conversion\u00a015%\tUnits\u00a0started\u00a0into\u00a0production\u00a0during\u00a0the\u00a0month\u00a06,000\tUnits\u00a0transferred\u00a0to\u00a0the\u00a0next\u00a0department\u00a0during\u00a0the\u00a0month\u00a05,600\tMaterials\u00a0costs\u00a0added\u00a0during\u00a0the\u00a0month\u00a0$112,500\tConversion\u00a0costs\u00a0added\u00a0during\u00a0the\u00a0month\u00a0$210,300\t1.\u00a0Question\u00a0:\u00a0(TCO\u00a0D)\u00a0Topple\u00a0Company\u00a0produces\u00a0a\u00a0single\u00a0product.\u00a0Operating\u00a0data\u00a0for\u00a0the\tcompany\u00a0and\u00a0its\u00a0absorption\u00a0costing\u00a0income\u00a0statement\u00a0for\u00a0the\u00a0last\u00a0year\u00a0are\tpresented\u00a0below.\tUnits\u00a0in\u00a0beginning\u00a0inventory\u00a02,000\tUnits\u00a0produced\u00a09,000\tUnits\u00a0sold\u00a010,000\tSales\u00a0$100,000\tLess\u00a0cost\u00a0of\u00a0goods\u00a0sold:\tBeginning\u00a0inventory\u00a012,000\tAdd\u00a0cost\u00a0of\u00a0goods\u00a0manufactured\u00a054,000\tGoods\u00a0available\u00a0for\u00a0sale\u00a066,000\tLess\u00a0ending\u00a0inventory\u00a06,000\tCost\u00a0of\u00a0goods\u00a0sold\u00a060,000\tGross\u00a0margin\u00a040,000\tLess\u00a0selling\u00a0and\u00a0admin.\u00a0expenses\u00a028,000\tNet\u00a0operating\u00a0income\u00a0$12,000\t\u00a0\t\u00a0\t\u00a0\t2.\u00a0Question\u00a0:\u00a0(TCO\u00a0I)\u00a0(Ignore\u00a0income\u00a0taxes\u00a0in\u00a0this\u00a0problem.)\u00a0Bill\u00a0Anders\u00a0retires\u00a0in\u00a08\u00a0years.\tHe\u00a0has\u00a0$650,000\u00a0to\u00a0invest\u00a0and\u00a0is\u00a0considering\u00a0a\u00a0franchise\u00a0for\u00a0a\u00a0fast-food\toutlet.\u00a0He\u00a0would\u00a0have\u00a0to\u00a0purchase\u00a0equipment\u00a0costing\u00a0$500,000\u00a0to\u00a0equip\u00a0the\toutlet\u00a0and\u00a0invest\u00a0an\u00a0additional\u00a0$150,000\u00a0for\u00a0inventories\u00a0and\u00a0other\u00a0working\tcapital\u00a0needs.\u00a0Other\u00a0outlets\u00a0in\u00a0the\u00a0fast-food\u00a0chain\u00a0have\u00a0an\u00a0annual\u00a0net\u00a0cash\tinflow\u00a0of\u00a0about\u00a0$160,000.\u00a0Mr.\u00a0Anders\u00a0would\u00a0close\u00a0the\u00a0outlet\u00a0in\u00a08\u00a0years.\u00a0He\testimates\u00a0that\u00a0the\u00a0equipment\u00a0could\u00a0be\u00a0sold\u00a0at\u00a0that\u00a0time\u00a0for\u00a0about\u00a010%\u00a0of\u00a0its\toriginal\u00a0cost.\u00a0Mr.\u00a0Anders&#8217;\u00a0required\u00a0rate\u00a0of\u00a0return\u00a0is\u00a016%.\tRequired:\tPart\u00a0A:\u00a0What\u00a0is\u00a0the\u00a0investment&#8217;s\u00a0net\u00a0present\u00a0value\u00a0when\u00a0the\u00a0discount\u00a0rate\u00a0is\t16%?\tPart\u00a0B:\u00a0Refer\u00a0to\u00a0your\u00a0calculations.\u00a0Is\u00a0this\u00a0an\u00a0acceptable\u00a0investment?\u00a0Why\u00a0or\twhy\u00a0not?\t\u00a0\t\u00a0\t\u00a0\t3.\u00a0Question\u00a0:\u00a0(TCO\u00a0A)\u00a0The\u00a0following\u00a0data\u00a0(in\u00a0thousands\u00a0of\u00a0dollars)\u00a0have\u00a0been\u00a0taken\u00a0from\u00a0the\u00a0accounting\u00a0records\u00a0of\u00a0the\u00a0Maroon\u00a0Corporation\u00a0for\u00a0the\u00a0just-completed\tyear.\tSales\u00a01,300\tRaw\u00a0materials\u00a0inventory,\u00a0beginning\u00a025\tRaw\u00a0materials\u00a0inventory,\u00a0ending\u00a030\tPurchases\u00a0of\u00a0raw\u00a0materials\u00a0250\tDirect\u00a0labor\u00a0350\tManufacturi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\u00a0 Multiple\u00a0Choice\u00a02 Short\u00a02 Essay\u00a07 \u00a0 \u00a0 Question\u00a01\u00a0:\u00a0(TCO\u00a0E)\u00a0Designing\u00a0a\u00a0new\u00a0product\u00a0is\u00a0a(n) \u00a0 2.\u00a0Question\u00a0:\u00a0(TCO\u00a0G)\u00a0Given\u00a0the\u00a0following\u00a0data,\u00a0what\u00a0would\u00a0ROI\u00a0be? Sales\u00a0$70,000 Net\u00a0operating\u00a0income\u00a0$10,000 Contribution\u00a0margin\u00a0$20,000 Average\u00a0operating\u00a0assets\u00a0$50,000 Stockholder&#8217;s\u00a0equity\u00a0$25,000 \u00a0 \u00a0 \u00a0 1.\u00a0Question\u00a0:\u00a0(TCO\u00a0C)\u00a0Longiotti\u00a0Corporation\u00a0produces\u00a0and\u00a0sells\u00a0a\u00a0single\u00a0product.\u00a0Data concerning\u00a0that\u00a0product\u00a0appear\u00a0below. Selling\u00a0price\u00a0per\u00a0unit\u00a0$375.00 Variable\u00a0expense\u00a0per\u00a0unit\u00a0$144.00 Fixed\u00a0expense\u00a0per\u00a0month\u00a0$1,686,300 Required: Determine\u00a0the\u00a0monthly\u00a0breakeven\u00a0in\u00a0units\u00a0or\u00a0dollar\u00a0sales.\u00a0Show\u00a0your\u00a0work! \u00a0 \u00a0 2.\u00a0Question\u00a0:\u00a0(TCO\u00a0B)\u00a0Maverick\u00a0Corporation\u00a0uses\u00a0the\u00a0weighted-average\u00a0method\u00a0in\u00a0its process\u00a0costing\u00a0system.\u00a0Data\u00a0concerning\u00a0the\u00a0first\u00a0processing\u00a0department\u00a0for the\u00a0most\u00a0recent\u00a0month\u00a0are\u00a0listed\u00a0below. Work\u00a0in\u00a0process,\u00a0beginning: Units\u00a0in\u00a0beginning\u00a0work\u00a0in\u00a0process\u00a0inventory\u00a0400 Materials\u00a0costs\u00a0$6,900 Conversion\u00a0costs\u00a0$2,500 Percent\u00a0complete\u00a0for\u00a0materials\u00a080% Percent\u00a0complete\u00a0for\u00a0conversion\u00a015% Units\u00a0started\u00a0into\u00a0production\u00a0during\u00a0the\u00a0month\u00a06,000 Units\u00a0transferred\u00a0to\u00a0the\u00a0next\u00a0department\u00a0during\u00a0the\u00a0month\u00a05,600 Materials\u00a0costs\u00a0added\u00a0during\u00a0the\u00a0month\u00a0$112,500 Conversion\u00a0costs\u00a0added\u00a0during\u00a0the\u00a0month\u00a0$210,300 <a href=\"https:\/\/www.benedictsol.com\/blogs\/acct-505-final-exam-guide-new-set-1\/\" class=\"read-more\">Read More &#8230;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-201290","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/201290","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=201290"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/201290\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=201290"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=201290"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=201290"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}