Review for Midterm

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Review for midterm
Note: You must be able to perform calculations, make decisions under various alternative situation. Simply knowing the definition is not sufficient to earn good grade.

Chapter 1
Management functions
Manufacturing costs
Cost classifications
Prepare Cost of goods Manufactured schedules/Cost of goods sold statements Cost of goods sold statements : Calculate missing amounts from given data set Ethical issues

Chapter 2
Difference between Job costing and process cost system
Cost flow in Job order costing (Cost accumulation and assignment by cost elements), including journal entries Be able to calculate applied manufacturing overhead/under-over applied manufacturing overhead from given data, including adjustments of under-over applied overhead

Chapter 3*
Cost flow in process cost system
Be able to prepare production cost report and its components Analyze Production cost report
Compute missing data within the production cost report
*Only Weighted average method

Chapter 5
Know cost behavior, identify types of costs from given data set and why it is so important Relevant range
Apply High-low method to determine fixed/variable cost
CVP:
Assumptions of CVP analysis
Be able to prepare CVP income statement
Compute Contribution margin, and contribution margin ratio
What is Break-even point
Be able to complete break-even analysis under different scenario Include Target net income with break-even analysis, Margin of safety

Review problem
1.

Temp Range Company prepared the following income statement for 2014:

TEMP RANGE COMPANY
Income Statement
For the Year Ended December 31, 2014
———————————————————————————————————————————
Sales (5,000 units)$200,000
Variable expenses 75,000
Contribution margin125,000
Fixed expenses 83,200
Net income$ 41,800

Instructions
Answer the following independent questions and show computations to support your answers.

1.What is the company’s...
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