ACCT 505 FINAL EXAM GUIDE (NEW) SET 3

ACCT 505 FINAL EXAM GUIDE (NEW) SET 3 (TCO E) Preparing purchase orders is a(n) (Points : 5) batch-level activity. product-level activity. unit-level activity. organization sustaining activity. 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 : 5) 28.6% 20.0% 40.0% 50.0% 3. (TCO C) Heckaman Corporation produces and sells a single product. Data concerning that product appear below. Selling price per unit $115.00 Variable expense per unit $56.35 Fixed expense per month $299,115 Required: Determine the monthly breakeven in unit or dollar sales. Show your work! (Points : 25) Solution: Break-even in dollars = fixed costs/ (P - V)/P = 299,115/(115.00 - 56.35)/56.35 = 299,115/1.04082 Break-even = $287,385 4. TCO B) Industrial Supply 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 400 Materials costs $6,900 Conversion costs $2,500 Percent complete for materials 80% Percent complete for conversion 15% Units started into production during the month 6,000