Accounting 3200 Midterm Exam
Questions #1, 6 and 9 are SIX points each. Questions #2 and 7 are FIVE points each. Question #3 is TEN points.
Questions #4 and 5 are EIGHT points each. Question #8 is TWELVE points.
Question #10 is SIXTEEN points. Question #11 is EIGHTEEN points.
BE SURE TO SHOW ALL SUPPORTING COMPUTATIONS. NO COMPUTATIONS = NO POINTS IF ANSWER IS WRONG.
1) Describe management accounting and financial accounting. Managerial accounting is more for internal users. Internal users like CEO, CFO, Managers want accounting information for special purpose, the accounting information can be very detail, It is for future decisions. It doesn’t have to be written by GAAP. It is more focused on relevant than objective.
However, Financial Accounting is for external users, it is more for general purpose. It is highly condensed. It is reported by quarterly ,and annually. It has to be written by GAAP. It more focused on being objective than relevant.
2) Whippany manufacturing wants to estimate costs for each product they produce at its Troy plant. The Troy plant produces three products at this plant, and runs two flexible assembly lines. Each assembly line can produce all three products.
a. Classify each of the following costs as either direct or indirect for each product.
b. Classify each of the following costs as either fixed or variable with respect to the number of units produced of each product.
Assembly line labour wages
Plant manager's wages
Depreciation on the assembly line equipment
Component parts for the product
Wages of security personnel for the factory
3) Messinger Manufacturing Company had the following account balances for the quarter ending March 31, unless otherwise noted:
Work-in-process inventory (January 1) Work-in-process inventory (March 31) Finished goods inventory (January 1) Finished goods