Ac505 Practice Final

Directions:  Answer each question in a paragraph—be sure to give specific details and examples.  Remember that each of these questions has multiple parts to it.  You must type your responses out and hand it to me by the end of our class period.

| (TCO E) In an income statement prepared using the variable costing method, variable selling and administrative expenses would:

(TCO C) Debt securities sold to investors that must be repaid at a particular date some years in the future are called:

Will the design adequately address the proposed aims. Describe strengths of weaknesses of the design. Indicate how the design might be strengthened: for instance, to address a more definitive outcome or improve the reliability of the data.

Assuming that all of the company’s retained earnings are to be paid out in dividends on 12/31/11 and that preferred dividends were last paid on 12/31/09, show how much the preferred and common stockholders should receive if the preferred stock is cumulative and fully participating.

Venture: cost – benefit analysis: Potentially 200 products implemented in the first year. Interest costs $40,000 p.a. profit $100,000. Break – even after 80 products sold.

3. Do products or services have a larger gross profit margin in 2014? Show your calculations.

Answer each of the following as indicated. Unless the instructions say to “quote”, then you should explain in your own words.

The gross margin profit based on the ABC data for GS-157 is $816,000, for the HS-241 the gross profit margin is $524,700 and the gross margin profit for the OS367 is $54,000. The difference in the ABC costs and the traditional costs for the costs per unit differ as the GS went from $13.33 to $12.50, the HS from 12.22 to $11.67 and the OS from 10 to $13.75 (Edmunds, Tsay, & Olds, 2011).

Both products require 1.5 hours of direct labor for completion. Therefore, total annual direct labor hours are 96,300 or {1.5hrs.X (54,000+10, 2000)}.Expected annual manufacturing overhead is $1,557,480.Thus, the predetermined overhead rate is $16.17 OR ($1,557,480 /96,300) per direct labor hour. The direct materials cost per unit is $18.50 for the home model and $26.50 for the commercial model. The direct labor cost is $ 19 per unit for both the home and the commercial models.

Directions to complete Question 3: * Use short responses, in complete sentences with proper grammar and spelling * Length of response should be between 2 to 3 sentences per question.

Directions: Answer each question completely. Please be sure to answer the question at hand and answer it completely. This is an independent test. While you may use your textbooks and notes every written answer should be in your own words. Cheating will not be tolerated. If you have messy handwriting you should either skip lines (on looseleaf) or type up answers and staple them to this document.

Answer all of the following questions. (125-word minimum each - except for the first, see instructions there). Use the textbook and any additional resources you feel are necessary. For each answer include an APA citation for any source used.

The unit selling price at 150,000 units is $0.17. The expected unit selling price for 25,000 units is $0.1.

Fixed expenses are $55,000 per month. The company is currently selling 1,000 units per month.