ACC500 Managerial Accounting FINAL

ACC500 Managerial Accounting

Final Exam

 

1) Dubuque Company has the following sales budget:

 

Month                              Cash Sales                                          Credit Sales

February                               $14,000                                                  $28,000

March                                      12,800                                                    29,200

April                                         10,800                                                    26,400

 

Collections of credit sales are 40% in the month of sale, 50% in the month after sale and 10% two months after sale.  No uncollectible accounts are expected.

 

Required:

Prepare a schedule of cash collections for April.

 

 

 

 

2) The Drew Company has the following information available:

 

Month                                                      Budgeted Sales

March                                                                  $150,000

April                                                                       153,000

May                                                                        151,000

June                                                                        254,500

July                                                                         252,500

 

The gross profit rate is 40% and the desired ending inventory level is 20% of the next month's cost of sales.

 

Required:

Prepare a purchases budget for April, May and June.

 

 

 

 

3)                                                                               Direct Material                        Direct Labor

Std. price per unit of input                                       $12 per foot                       $14 per hour

Actual price per unit of input                                 $14 per foot                       $13 per hour

Std. inputs allowed per unit of output                             5 feet                                 3 hours

Actual units of input                                                      2,500 feet                         1,550 hours

 

Actual units of output                                                   600 units

 

Required:

Compute the price and quantity variances for direct materials and direct labor.

 

 

 

 

 

 

 

4) Progressive Company produces a product in a process-costing system involving several departments.  The company uses the weighted-average method of product costing.  The first department's data for the month of April follow:

 

Units in beginning work-in-process inventory                                                                           25,000

Units started during April1                                                                                                            155,000

Units completed during April                                                                                                        140,000

Units in ending work-in-process inventory                                                                                 40,000

 

Direct materials added in current month                                                                                 $188,000

Conversion costs added in current month                                                                               $175,000

Direct materials–beginning work-in-process inventory                                                        $35,750

Conversion costs–beginning work-in-process inventory                                                         $6,225

 

Stage of Completion:

                                                                                                             Materials               Conversion Costs

Beginning work-in-process inventory                                             100%                                        50%

Ending work-in-process inventory                                                   100%                                        35%

 

Required:

A) Compute equivalent units for materials and conversion costs.

B) Compute the cost per unit for materials and conversion costs.

C) Compute the cost of the units transferred.

D) Compute the cost of the ending work-in-process inventory.

 

5) Splitsville Company has two departments.   Factory overhead costs are applied based on direct labor cost in Department A and machine hours in Department B.  The following information is available:

 

Budgeted Items                                                                   Dept. A                                  Dept. B

Direct labor cost                                                               $190,000                               $165,000

Machine hours                                                                      51,000                                    50,000

Factory overhead cost                                                    $325,000                               $280,000

 

Actual data for Job #10 are as follows:

Actual Items                                                                        Dept. A                                  Dept. B

Direct materials requisitioned                                       $20,000                                 $16,000

Direct labor cost                                                                 $17,000                                 $24,000

Machine hours                                                                        7,000                                      5,000

 

Required:

A) Compute the budgeted factory overhead rate for Department A.

B) Compute the budgeted factory overhead rate for Department B.

C) What is the total overhead cost for Job #10?

D) If Job #10 consists of 50 units of product, what is the unit cost of this job?