ACCT 526 Midterm Exam| Questions and Answers Latest Updated
2026/2027 (Graded A+)-ULL
Started on Tuesday, February 17, 2026, 6:09 PM
State Finished
Completed on Tuesday, February 17, 2026, 7:09 PM
Time taken 59 mins 11 secs
Points 29.00/33.00
Grade 87.88 out of 100.00
Question 1
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Question text
ULL Co. manufactures and sells 2,000 units of its product at a price of $30 per unit in a given year. Its per unit
product cost is $13 per unit. ULL Co. also has selling and administrative expenses of $3,000. What is ULL
Co.’s gross margin?
a.
$60,000
b.
$31,000
c.
$57,000
d.
$34,000
Feedback
Gross margin is revenue minus COGS. Revenue= price x number of units sold, COGS = unit product cost x
number of units sold.
Revenue= $30 x 2,000= $60,000
COGS= $13 x 2,000= $26,000
Gross margin= $60,000- $26,000= $34,000
The correct answer is:
$34,000
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Question text
If beginning work-in-process inventory is $110,000, ending work-in-process inventory is $140,000, cost of goods
manufactured is $500,000 and direct materials used are $150,000, what are the conversion costs?
a.
$300,000
b.
$380,000
c.
$350,000
d.
$340,000
Feedback
The standard Cost of Goods Manufactured formula is:
Direct Labor + Manufacturing Overhead + Direct Materials + Beginning Work in Progress- Ending Work in
Progress= COGM. The problem gives us most of the pieces and allows us to combine Direct Labor and
Manufacturing Overhead (conversion costs) as one "x" variable. Therefore our problem is:
X + $150,000 + $110,000 - $140,000 = $500,000
Then, solve for X.
X + $120,000 = $500,000
X= $380,000
The correct answer is: $380,000
Correct
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Question text
<="" p="" style="box-sizing: border-box; margin: 0px 0px 0.5em;">
Which of the following is most likely to be a prime cost?
, a.
Salary of carpenter in a wood furniture shop
b.
Electricity to run a factory
c.
Salary of a company's CEO
d.
Frying oil in a restaurant
Feedback
Prime costs are direct materials and direct labor. The salary of a carpenter in a furniture shop is direct labor.
The correct answer is: Salary of carpenter in a wood furniture shop
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Question text
Trust Company applies overhead based on direct labor hours. At the beginning of the year, Trust estimates overhead to be
$850,000, machine hours to be 150,000, and direct labor hours to be 40,000. During February, Trust has 4,000 direct labor
hours and 12,000 machine hours.
What is the predetermined overhead rate?
a.
$21.25 per direct labor hour
b.
$20.00 per direct labor hour
c.
$2.98 per machine hour
d.
None of these
e.
$5.67 per machine hour
Feedback
, Predetermined overhead rate = Estimated annual overhead / Estimated annual activity level= Predetermined
overhead rate = $850,,000 direct labor hours = $21.25 per direct labor hour
The correct answer is: $21.25 per direct labor hour
Correct
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Question text
Which of the following is not an objective of managerial accounting?
a.
To provide information for planning an organization’s action
b.
To produce information for external users, including investors, creditors, customers, suppliers, and government agencies
c.
To provide information for effective decision making by the management of a company
d.
To provide information for evaluating and continuously improving an organization’s actions
Feedback
Managerial accounting is focused on the internal planning, decision making, and controlling of a company.
Financial accounting primarily focuses on the external users of financial statements.
The correct answer is: To produce information for external users, including investors, creditors, customers, suppliers,
and government agencies
Correct
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Question text
Which of the following sections is prepared differently under direct and indirect methods for statement of cash flow
production?
a.
Research activities only
2026/2027 (Graded A+)-ULL
Started on Tuesday, February 17, 2026, 6:09 PM
State Finished
Completed on Tuesday, February 17, 2026, 7:09 PM
Time taken 59 mins 11 secs
Points 29.00/33.00
Grade 87.88 out of 100.00
Question 1
Correct
1.00 points out of 1.00
Flag question
Question text
ULL Co. manufactures and sells 2,000 units of its product at a price of $30 per unit in a given year. Its per unit
product cost is $13 per unit. ULL Co. also has selling and administrative expenses of $3,000. What is ULL
Co.’s gross margin?
a.
$60,000
b.
$31,000
c.
$57,000
d.
$34,000
Feedback
Gross margin is revenue minus COGS. Revenue= price x number of units sold, COGS = unit product cost x
number of units sold.
Revenue= $30 x 2,000= $60,000
COGS= $13 x 2,000= $26,000
Gross margin= $60,000- $26,000= $34,000
The correct answer is:
$34,000
Incorrect
0.00 points out of 1.00
, Flag question
Question text
If beginning work-in-process inventory is $110,000, ending work-in-process inventory is $140,000, cost of goods
manufactured is $500,000 and direct materials used are $150,000, what are the conversion costs?
a.
$300,000
b.
$380,000
c.
$350,000
d.
$340,000
Feedback
The standard Cost of Goods Manufactured formula is:
Direct Labor + Manufacturing Overhead + Direct Materials + Beginning Work in Progress- Ending Work in
Progress= COGM. The problem gives us most of the pieces and allows us to combine Direct Labor and
Manufacturing Overhead (conversion costs) as one "x" variable. Therefore our problem is:
X + $150,000 + $110,000 - $140,000 = $500,000
Then, solve for X.
X + $120,000 = $500,000
X= $380,000
The correct answer is: $380,000
Correct
1.00 points out of 1.00
Flag question
Question text
<="" p="" style="box-sizing: border-box; margin: 0px 0px 0.5em;">
Which of the following is most likely to be a prime cost?
, a.
Salary of carpenter in a wood furniture shop
b.
Electricity to run a factory
c.
Salary of a company's CEO
d.
Frying oil in a restaurant
Feedback
Prime costs are direct materials and direct labor. The salary of a carpenter in a furniture shop is direct labor.
The correct answer is: Salary of carpenter in a wood furniture shop
Correct
1.00 points out of 1.00
Flag question
Question text
Trust Company applies overhead based on direct labor hours. At the beginning of the year, Trust estimates overhead to be
$850,000, machine hours to be 150,000, and direct labor hours to be 40,000. During February, Trust has 4,000 direct labor
hours and 12,000 machine hours.
What is the predetermined overhead rate?
a.
$21.25 per direct labor hour
b.
$20.00 per direct labor hour
c.
$2.98 per machine hour
d.
None of these
e.
$5.67 per machine hour
Feedback
, Predetermined overhead rate = Estimated annual overhead / Estimated annual activity level= Predetermined
overhead rate = $850,,000 direct labor hours = $21.25 per direct labor hour
The correct answer is: $21.25 per direct labor hour
Correct
1.00 points out of 1.00
Flag question
Question text
Which of the following is not an objective of managerial accounting?
a.
To provide information for planning an organization’s action
b.
To produce information for external users, including investors, creditors, customers, suppliers, and government agencies
c.
To provide information for effective decision making by the management of a company
d.
To provide information for evaluating and continuously improving an organization’s actions
Feedback
Managerial accounting is focused on the internal planning, decision making, and controlling of a company.
Financial accounting primarily focuses on the external users of financial statements.
The correct answer is: To produce information for external users, including investors, creditors, customers, suppliers,
and government agencies
Correct
1.00 points out of 1.00
Flag question
Question text
Which of the following sections is prepared differently under direct and indirect methods for statement of cash flow
production?
a.
Research activities only
