Accounting 3200 Midterm Exam

Topics: Management accounting, Costs, Variable cost Pages: 12 (2297 words) Published: April 19, 2015
Accounting 3200 Midterm Exam, Term 3 - Chapters 1 - 5 and 17 1,7,
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. Version: HMT03midon

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. Required:

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.

Direct
Indirect
Fixed
Variable

Assembly line labour wages
X

X
Plant manager's wages

X
X

Depreciation on the assembly line equipment

X

Component parts for the product
X

X
Wages of security personnel for the factory

X

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 inventory (March 31) Direct materials used Indirect materials used
Direct manufacturing labor
Indirect manufacturing labor
Property taxes on manufacturing plant building Salespersons' company vehicle costs Depreciation of manufacturing equipment Depreciation of office equipment Miscellaneous plant overhead
Plant utilities
General office expenses Marketing distribution costs
Required:

$140,400
171,000
540,000
510,000
378,000
84,000 480,000 186,000 28,800 12,000 264,000
123,600
135,000
92,400 305,400 30,000

a. Prepare a cost of goods manufactured schedule for the quarter. b. Prepare a cost of goods sold schedule for the quarter.
a.
messenger manufacturing company
COG Manufactured schedule
For quarter ending march31
A.

Direct materials used

$378,000

Direct manufacturing labor

480,000

Manufacturing overhead

Depreciation of manufacturing equipment
$264,000

Indirect manufacturing labor
186,000

Indirect materials
84,000

miscellanneous plant overhead
135,000

plant utilities
92,400

property taxes on building
28,800
$790,200

Manufacturing costs incurred

$1,648,200

Add beginning work-in-process inventory

140,400

Total manufacturing costs

$1,788,600

Less ending work-in-process inventory

171,000

Cost of goods manufactured

$1,617,600

Messinger manufacturing Company
COGS schedule
For the quarter ending march 31
B.
Beginning finished goods inventory
$540,000

Cost of goods manufactured
1,617,600

Cost of goods availble for sale
2,157,600

Ending finished goods inventroy
510,000

Cost of goods sold
$1,647,600

4) Auto Tires has been in the tire business for four years. It rents a building but owns all of its equipment. All employees are paid a fixed salary except for the busy season (April-June), when temporary help is hired by the hour. Utilities and other...
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