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    Midterm 1+ 2 (T NG H P)

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    Shen NPTD
    The document describes Sophia Company which produces three models of smart TVs. It provides information on the traceable fixed costs for the company which consist of depreciation and plant supervisory salaries. All of the depreciation is dedicated to the product lines and the equipment cannot be sold. Each product has a different supervisor whose position would be eliminated if the associated product was dropped. The correct conclusion is that if Sophia drops the UA43 model, it will decrease income by $100,000 due to losing the supervisor's salary and no longer allocating depreciation costs to that product line.

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    Midterm 1+ 2 (T NG H P)

    Uploaded by

    Shen NPTD
    379 views13 pages
    The document describes Sophia Company which produces three models of smart TVs. It provides information on the traceable fixed costs for the company which consist of depreciation and plant supervisory salaries. All of the depreciation is dedicated to the product lines and the equipment cannot be sold. Each product has a different supervisor whose position would be eliminated if the associated product was dropped. The correct conclusion is that if Sophia drops the UA43 model, it will decrease income by $100,000 due to losing the supervisor's salary and no longer allocating depreciation costs to that product line.

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    Midterm 1+ 2 (Tổng Hợp)

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    The document describes Sophia Company which produces three models of smart TVs. It provides information on the traceable fixed costs for the company which consist of depreciation and plant supervisory salaries. All of the depreciation is dedicated to the product lines and the equipment cannot be sold. Each product has a different supervisor whose position would be eliminated if the associated product was dropped. The correct conclusion is that if Sophia drops the UA43 model, it will decrease income by $100,000 due to losing the supervisor's salary and no longer allocating depreciation costs to that product line.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    379 views13 pages

    Midterm 1+ 2 (T NG H P)

    Uploaded by

    Shen NPTD
    The document describes Sophia Company which produces three models of smart TVs. It provides information on the traceable fixed costs for the company which consist of depreciation and plant supervisory salaries. All of the depreciation is dedicated to the product lines and the equipment cannot be sold. Each product has a different supervisor whose position would be eliminated if the associated product was dropped. The correct conclusion is that if Sophia drops the UA43 model, it will decrease income by $100,000 due to losing the supervisor's salary and no longer allocating depreciation costs to that product line.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 13

    C

    14/ Sophia Company produces three models of smart TV, including UA32, UA40 and UA43.
    A segmented income statement, with amounts given in thousands, follows:
    Traceable fixed costs consist of depreciation and plant supervisory salaries. All
    depreciation on the equipment is dedicated to the product lines. None of the equipment can
    be sold. Each of three products has a different supervisor whose position would be
    eliminated if the associated product were dropped.
    Which is the correct conclusion?
    a. If Sophia drops UA40, it will make a decrease of 100,000 in income
    b. All are incorrect
    c. If Sophia drops UA43, it will make a decrease of 100,000 in income
    d. If Sophia drops UA40, it will make an increase of 100,000 in income

    A
    D

    A
    C

    D
    D. The decrease in profit: $8000

    B
    A

    B
    A

    2/ W Company uses a job-order costing system to account for product costs. The following
    information pertains for a period: Materials placed into production: $140,000; Indirect labour:
    $40,000; Direct labour (10 000 hours): $160,000; Depreciation of factory building: $60,000;
    Other factory overhead: $100,000; Increase in work-in-process inventory: $30,000; Factory
    overhead rate is £18 per direct labour hour. What is the total amount debited to Finished
    Goods Inventory for the period?
    a.$510,000
    b.$490,000
    c.$450,000
    d.$550,000

    3/ In a short-decision making context, which one of the following would be a relevant cost?
    Đúng
    a. The original cost of raw material currently in stock that will be used on the project
    b. The cost of special material which will be purchased
    c. Specific development costs already incurred
    d. Depreciation on existing equipment

    b
    4/ A company sells two products: M and N. The sales mix is expected to be $3.00 of sales
    of Product M for every $5.00 of sales of Product N. Product M has a contribution margin ratio
    of 40% whereas Product N has a contribution margin ratio of 50%. Annual fixed expenses
    are expected to be $259,000. The overall break-even point for the company in dollar sales
    is expected to be closest to:

    a.$560,000

    b.$222,000

    c.$370,000

    d.$592,000

    5/ Which of the following production costs, if expressed on a per unit basis, would be most
    likely to change significantly as the production level varies?

    a.Variable costs

    b.Direct labor

    c.Fixed manufacturing overhead

    d.Direct materials

    C
    12/ Flexi Plastics Ltd manufactures a highly specialised plastic material that is used
    extensively in the car industry. The following data have been compiled for the month of June.
    Conversion activity occurs uniformly throughout the production process.

    Work in process, 1 June – 1,250 units

    Direct material: 100% complete $512,500

    Conversion: 70% complete 245,000

    Units started during June 8,300 units

    Units completed during June and transferred to finished goods inventory: ?

    Work in process, 30 June – 1,450 units

    Direct material: 100%

    Conversion: 60%

    Costs incurred during June:


    Direct material $4,083,600

    Conversion 2,719,920

    The company uses a FIFO process costing system.

    Calculate unit costs of conversion cost and costs of finished goods

    a.$492 and $5,671,800

    b.$492 and $6,555,300

    c.$336 and $5,671,800

    d.$336 and $6,555,300

    3/ Nathan Corporation had production overhead cost at various levels of activity for the year
    20x0 as below:
    Labour-hours Total production overhead cost

    January 32,000 $335,200

    February 51,000 524,000

    March 21,000 225,000

    April 34,000 354,700

    May 55,000 565,000

    June
    42,000 435,800

    Production overhead cost in March was breakdown as follows:

    Components of production overhead cost

    Indirect material (variable) $126,000

    Supervisor salaries (fixed) 3,000

    Rent & Depreciation (fixed) 8,000


    Electricity (mixed) 88,000

    What total electricity cost would you expect to be incurred at 40,000 labour-hours?
    a. $167,619
    b. $415,000
    c. $164,000
    d. All are incorrect
    C

    MIDTERM 2

    A
    C
    C
    B

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