Acct 505-Midterm

1400 Words6 Pages
Midterm page 1 1. (TCO A) Direct material cost is a part of (Points : 6) | Conversion Cost YES.... Prime Cost NO. Conversion Cost NO.... Prime Cost YES. Conversion Cost YES.... Prime Cost YES. Conversion Cost NO.... Prime Cost NO. | 2. (TCO A) The costs of staffing and operating the accounting department at Central Hospital would be considered by the Department of Surgery to be (Points : 6) | direct costs. sunk costs. incremental costs. None of the above | 3. (TCO A) Depreciation of office buildings and office equipment is also known as (Points : 6) | variable costs. conversion costs. product costs. period costs. |…show more content…
Required: Compute the equivalent units of production for the first department for June, assuming that the company uses the weighted-average method of accounting for units and costs. Equivalent Units Materials Conversion Units transferred to the next department 480,000 480,000 Ending work in process: Materials 145,000 x 85% 123,250 Conversion 145,000 x 75% 108,750 Equivalent units of production 603,250 588,750 3. (TCO B) A cement manufacturer has supplied the following data: Tons of cement produced and sold 220,000 Sales revenue $924,000 Variable manufacturing expense $297,000 Fixed manufacturing expense $280,000 Variable selling and admin expense $165,000 Fixed selling and admin expense $82,000 Net operating income $100,000 Required: a. Calculate the

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