University of Louisiana, Lafayette ACCT 526 Mid Term Exam. 100% Verified Q And A.

University of Louisiana, Lafayette ACCT 526 Mid Term Exam. 100% Verified Q And A. Started on Tuesday, February 15, 2022, 6:09 PM State Finished Completed on Tuesday, February 15, 2022, 7:09 PM Time taken 59 mins 11 secs Points 29.00/33.00 Grade87.88 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 Question 2 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 Question 3 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 Question 4 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