ACCT 526 Midterm Exam Questions and Answers Latest Updated 2024/2025 (GRADED A+)

ACCT 526 Midterm Exam Questions and Answers Latest Updated 2024/2025 (GRADED A+) Costs of completed but unsold products would be found in which account? Select one: a. nished goods inventory  b. raw materials inventory c. cost of goods sold d. work in process inventory e. none of these The correct answer is: nished goods inventory Cost of goods sold: a. represents all costs associated with research, development, and general administration of an organization. b. is the cost of the partially completed goods that are still on the factory floor at the end of a period. c. is reported on the balance sheet. d. is the total product cost for the units sold during a period.  The correct answer is: is the total product cost for the units sold during a period. ACCT 526 Midterm Exam Questions and Answers Latest Updated 2024/2025 (GRADED A+) 2/19 Question 3 Correct 1.00 points out of 1.00 Question 4 Correct 1.00 points out of 1.00 A product currently requires 8 raw materials moves. By changing the plant layout, the number of moves can be reduced to 3. The cost per move is $50. Calculate the reduction in the nonvalue-added cost of the raw materials moving activity. a. $400 b. $250  c. $160 d. $0 e. $150 Reduction in nonvalue-added cost of raw materials moving activity = (Number of moves prior to change in plant layout − Number of moves after change in plant layout) × Cost per move (8 moves -3 moves) x $50= $250 The correct answer is: $250 An opportunity cost is: a. the difference between gross margin and operating expenses. b. expensed in the period in which it is incurred; it is not inventoried. c. the cost to market, distribute, and service a product or service. d. the benefit given up or sacrificed when one alternative is chosen over another.  The correct answer is: the benefit given up or sacrificed when one alternative is chosen over another. 3/19 Question 5 Correct 1.00 points out of 1.00 Question 6 Correct 1.00 points out of 1.00 Accounts receivable arising from sales to customers amounted to $120,000 and $75,000 at the beginning and end of the year respectively. Net income reported on the income statement for the year was $170,000. Exclusive of the effect of other adjustments, the cash inflows from operating activities to be reported on the statement of cash flows are: a. $215,000.  b. $165,000. c. $290,000. d. $125,000. Change in accounts receivable = Accounts receivable at the beginning of the year− Accounts receivable at the end of the year = $120,000 − $75,000= $45,000 Cash in ows from operating activities = Net income + Decrease in accounts receivable = $170,000 + $45,000 = $215,000 The correct answer is: $215,000. Which of the following is not an objective of managerial accounting? a. To provide information for evaluating and continuously improving an organization’s actions b. To provide information for effective decision making by the management of a company c. To provide information for planning an organization’s action d. To produce information for external users, including investors, creditors, customers, suppliers, and government agencies  Managerial accounting is focused on the internal planning, decision making, and controlling of a company. Financial accounting primarily focuses on the external users of nancial statements. The correct answer is: To produce information for external users, including investors, creditors, customers, suppliers, and government agencies Back to Top 4/19 Question 7 Incorrect 0.00 points out of 1.00 Question 8 Correct 1.00 points out of 1.00 A gain on the sale of equipment should be __________ as part of the adjustment needed to produce operating cash flow. a. added to net income  b. deducted from net income c. added to financing activities d. deducted from financing activities Gain on sale of equipment should be deducted from net income to produce operating cash ows. The correct answer is: deducted from net income Sonarbien produces 24,000 units of cell phone. The production requires prime costs of $4,160,000, uses 5,000 machine hours, and takes 3,600 setup hours. The activity rates are $100 per machine hour and $260 per setup hour. What is the unit cost of a cell phone? (Note: Round your answer to two decimal places.) a. $107.50 b. $87.50 c. $233.17  d. $105.67 e. $126.50 Unit cost = (Total costs / Units) Unit cost = [Prime cost + (Machine hours × Activity rate per machine hour) + (Setup hours × Activity rate per setup hour)] / Units Unit cost = [$4,160,000 + (5,000 machine hours×$100) + (3,600 setup hours× $260)] / 24,000 units = $233.17 The correct answer is: $233.17 Back to Top 5/19 Question 9 Incorrect 0.00 points out of 1.00 The data given below are from the accounting records of Kahn