ACCT 505 FINAL EXAM.
Question 1.1. (TCO E) Installing a custom logo on a boat is a(n) (Points : 10)
batch-level activity.
product-level activity.
unit-level activity.
organization sustaining activity.
Question 2.2. (TCO G) Given the following data, what would ROI be?
Sales $70,000
Net operating income $10,000
Contribution margin $20,000
Average operating assets $50,000
Stockholder's equity $25,000
(Points : 10)
28.6%
20.0%
40.0%
50.0%
Page 2
Question 1.1. (TCO C) Aziz Corporation produces and sells a single product. Data concerning that
product appear below.
Selling price per unit $110.00
Variable expense per unit $38.50
Fixed expense per month $85,800
Required: Determine the monthly breakeven in either unit or total dollar sales. Show your work! (Points
: 25)
BEP (units) = fixed cost / contribution per unit
= 85,800 / (110 - 38.50)
= 1200 units
(dollars) = 85,800 *110/71.5
= $132,000
Question 2.2. (TCO B) Carter Corporation uses the weighted-average method in its process costing
system. Data concerning the first processing department for the most recent month are listed below.
Work in process, beginning:
, Units in beginning work-in-process inventory 600
Materials costs $6,900
Conversion costs $2,500
Percentage complete for materials 80%
Percentage complete for conversion 15%
Units started into production during the month 6,300
Units transferred to the next department during the
5,800
month
Materials costs added during the month $112,500
Conversion costs added during the month $210,300
Ending work in process:
Units in ending work-in-process
1,100
inventory
Percentage complete for materials 70%
Percentage complete for conversion 40%
Required: Calculate the equivalent units for materials (using the weighted-average method) for the
month in the first processing department. (Points : 25)
SOLUTION:
To solve for units transferred:
+WIP,beginning
+Units started into production during the month
-WIP,ending
=Units completed and transferred out during the month
Equivalent units of production
Transferred to next department 5,800
WIP,ending (1,100 units*40%complete) 440
Question 1.1. (TCO E) Installing a custom logo on a boat is a(n) (Points : 10)
batch-level activity.
product-level activity.
unit-level activity.
organization sustaining activity.
Question 2.2. (TCO G) Given the following data, what would ROI be?
Sales $70,000
Net operating income $10,000
Contribution margin $20,000
Average operating assets $50,000
Stockholder's equity $25,000
(Points : 10)
28.6%
20.0%
40.0%
50.0%
Page 2
Question 1.1. (TCO C) Aziz Corporation produces and sells a single product. Data concerning that
product appear below.
Selling price per unit $110.00
Variable expense per unit $38.50
Fixed expense per month $85,800
Required: Determine the monthly breakeven in either unit or total dollar sales. Show your work! (Points
: 25)
BEP (units) = fixed cost / contribution per unit
= 85,800 / (110 - 38.50)
= 1200 units
(dollars) = 85,800 *110/71.5
= $132,000
Question 2.2. (TCO B) Carter Corporation uses the weighted-average method in its process costing
system. Data concerning the first processing department for the most recent month are listed below.
Work in process, beginning:
, Units in beginning work-in-process inventory 600
Materials costs $6,900
Conversion costs $2,500
Percentage complete for materials 80%
Percentage complete for conversion 15%
Units started into production during the month 6,300
Units transferred to the next department during the
5,800
month
Materials costs added during the month $112,500
Conversion costs added during the month $210,300
Ending work in process:
Units in ending work-in-process
1,100
inventory
Percentage complete for materials 70%
Percentage complete for conversion 40%
Required: Calculate the equivalent units for materials (using the weighted-average method) for the
month in the first processing department. (Points : 25)
SOLUTION:
To solve for units transferred:
+WIP,beginning
+Units started into production during the month
-WIP,ending
=Units completed and transferred out during the month
Equivalent units of production
Transferred to next department 5,800
WIP,ending (1,100 units*40%complete) 440
