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ACC 212 Study Guide - Midterm Guide: Accounts Receivable, Income Statement, Management Accounting

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School
University of Miami
Department
Accounting Business Administration
Course
ACC 212
Professor
collins

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Document Summary

Acc 212 exam 1: 20 questions, 1 fill in blank computing equivalent units. The topics we are reviewing are as follow: Conversion cost: direct labor + manufacturing overhead, manufacturing overhead: indirect labor and materials. Application of overhead, closing over or under applied overhead: when we apply it: (on t-chart debit is actual, credit is applied, debit work in process; credit applied manufacturing overhead. If actual is 1000, applied is 1020 = overapplied: decrease cost of goods sold; increase net income, debit manufacturing overhead 20; credit cogs 20. If underapplied by : debit cogs 30; credit manufacturing overhead 30. Issuing raw materials: buy raw materials, debit raw materials; credit accounts payable. Issue raw materials: debit work in process (direct materials); credit raw materials for indirect materials you debit manufacturing overhead. Compute overhead rate: planned budgeted estimated overhead divided by estimated allocation base (number of direct labor hours/machine hours)

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Related Questions

Martinez Company’s relevant range of production is 7,900 unitsto 12,900 units. When it produces and sells 10,400 units, its unitcosts are as follows: Amount Per Unit

Direct materials $ 6.60

Direct labor $ 4.10

Variable manufacturing overhead $ 1.50

Fixed manufacturing overhead $ 4.60

Fixed selling expense $ 3.60

Fixed administrative expense $ 2.00

Sales commissions $ 1.00

Variable administrative expense $ 0.50


1. If 8,400 units are sold, what is the variable cost per unitsold? (Round your answer to 2 decimal places.)
2. If 12,900 units are sold, what is the variable cost per unitsold? (Round your answer to 2 decimal places.)
3. If 8,400 units are produced, what is the total amount of fixedmanufacturing cost incurred to support this level ofproduction?
4. If 12,900 units are produced, what is the total amount of fixedmanufacturing cost incurred to support this level ofproduction?
5. If 8,400 units are produced, what is the total amount ofmanufacturing overhead cost incurred to support this level ofproduction?
6. If 8,400 units are produced, what is the total amount ofmanufacturing overhead cost expressed on a per unit basis? (Roundyour answer to 2 decimal places.)
7. If 12,900 units are produced, what is the total amount ofmanufacturing overhead cost incurred to support this level ofproduction?
8. If 12,900 units are produced, what is the total amount ofmanufacturing overhead cost expressed on a per unit basis? (Roundyour answer to 2 decimal places.)
9. If 11,400 units are produced, what are the total amount ofdirect manufacturing costs incurred to support this level ofproduction?
10.If 11,400 units are produced, what are the total amount ofindirect manufacturing costs incurred to support this level ofproduction?

Franklin Glass Works uses a standard cost system in whichmanufacturing overhead is applied on the basis of standard directlabor-hours. Each unit requires five standard hours of direct laborfor completion. The denominator activity for the year was based onbudgeted production of 170,000 units. Total overhead was budgetedat $2,250,000 for the year, and the fixed manufacturing overheadrate was $2.50 per direct labor-hour. The actual data pertaining tothe manufacturing overhead for the year are presentedbelow:


Actual production 168,000 units
Actual direct labor-hours 410,000 direct labor-hours
Actual variable manufacturing overhead $322,000
Actual fixed manufacturing overhead $572,000


Franklin'sfixed manufacturing overhead volume variance for the yearis:

$25,000 unfavorable
$8,500 favorable
$313,500 favorable
$47,500 unfavorable

Austin Wool Products purchases raw wool and processes it into yarn.The spindles of yarn can then be sold directly to stores or theycan be used by Austin Wool Products to make afghans. Each afghanrequires one spindle of yarn. Current cost and revenue data for thespindles of yarn and for the afghans are as follows:


Data for one spindle of yarn:
Selling price $12
Variable production cost $8
Fixed production cost (based on 4,600 spindles of yarnproduced) $2
Data for one afghan:
Selling price $31
Production cost per spindle of yarn $10
Variable production cost to process the yarn into anafghan $9
Avoidable fixed production cost to process the yarninto an afghan
(based on 4,600 afghans produced)		 $5

Each month 4,600 spindles of yarn are produced that can either besold outright or processed into afghans.


If Austin chooses to produce 4,600 afghans each month, the changein the monthly net operating income as compared to selling 4,600spindles of yarn is:

$18,400 decrease
$18,400 increase
$23,000 decrease
$23,000 increase

Humes Corporation makes a range of products. The company'spredetermined overhead rate is $24 per direct labor-hour, which wascalculated using the following budgeted data:


Variable manufacturing overhead $ 84,000
Fixed manufacturing overhead $ 420,000
Direct labor-hours 21,000

Management is considering a special order for 780 units of productJ45K at $72 each. The normal selling price of product J45K is $83and the unit product cost is determined as follows:


Direct materials $ 45.00
Direct labor 16.00
Manufacturing overhead applied 24.00
Unit product cost $ 85.00

If the special order were accepted, normal sales of this and otherproducts would not be affected. The company has ample excesscapacity to produce the additional units. Assume that direct laboris a variable cost, variable manufacturing overhead is reallydriven by direct labor-hours, and total fixed manufacturingoverhead would not be affected by the special order.


Required:

What would be the impact on the company's overall profit? (Input the amount as apositive value. Round your intermediate calculations to 2 decimalplaces and final answer to the nearest dollar amount. Omit the "$"sign in your response.)


Total (Click to select)decreaseincrease in profit $



Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its unit costs are as follows:
Amount
Per Unit
Direct materials $ 6.00
Direct labor $ 3.50
Variable manufacturing overhead $ 1.50
Fixed manufacturing overhead $ 4.00
Fixed selling expense $ 3.00
Fixed administrative expense $ 2.00
Sales commissions $ 1.00
Variable administrative expense $ 0.50
Required:
1.

For financial accounting purposes, what is the total amount of product costs incurred to make 10,000 units?


2.

For financial accounting purposes, what is the total amount of period costs incurred to sell 10,000 units?


3.

If 8,000 units are sold, what is the variable cost per unit sold? (Round your answer to 2 decimal places.)


4.

If 12,500 units are sold, what is the variable cost per unit sold? (Round your answer to 2 decimal places.)



5. If 8,000 units are sold, what is the total amount of variable costs related to the units sold?


6. If 12,500 units are sold, what is the total amount of variable costs related to the units sold?

7. If 8,000 units are produced, what is the average fixed manufacturing cost per unit produced?
8.

If 12,500 units are produced, what is the average fixed manufacturing cost per unit produced? (Round your answer to 2 decimal places.)
9.

If 8,000 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?
10.

If 12,500 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?
11-a.

If 8,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production?



11-b.

If 8,000 units are produced, What is this total amount of manufacturing overhead cost expressed on a per unit basis? (Round your answer to 2 decimal places.)


12-a.

If 12,500 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production?



12-b.

If 12,500 units are produced, what is this total amount of manufacturing overhead cost expressed on a per unit basis? (Round your answer to 2 decimal places.)
13.

If the selling price is $22 per unit, what is the contribution margin per unit sold? (Round your answer to 2 decimal places.)

Required:
14-a.

If 11,000 units are produced, what are the total amounts of direct manufacturing costs incurred to support this level of production?


14-b.

If 11,000 units are produced, what are the total amounts of indirect manufacturing costs incurred to support this level of production?



15.

What total incremental cost will Martinez incur if it increases production from 10,000 to 10,001 units?