ACC500 Managerial Accounting

  

ACC500 Managerial Accounting

Final Exam

1) Dubuque Company has the following sales budget:

Month Cash Sales Credit Sales

February $14,000 $28,000

March 12,800 29,200

April 10,800 26,400

Collections of credit sales are 40% in the month of sale, 50% in the month after sale and 10% two months after sale. No uncollectible accounts are expected.

Required:

Prepare a schedule of cash collections for April.

2) The Drew Company has the following information available:

Month Budgeted Sales

March $150,000

April 153,000

May 151,000

June 254,500

July 252,500

The gross profit rate is 40% and the desired ending inventory level is 20% of the next month’s cost of sales.

Required:

Prepare a purchases budget for April, May and June.

3)  Direct Material Direct Labor

Std. price per unit of input $12 per foot $14 per hour

Actual price per unit of input $14 per foot $13 per hour

Std. inputs allowed per unit of output 5 feet 3 hours

Actual units of input 2,500 feet 1,550 hours

Actual units of output 600 units

Required:

Compute the price and quantity variances for direct materials and direct labor.

4) Progressive Company produces a product in a process-costing system involving several departments. The company uses the weighted-average method of product costing. The first department’s data for the month of April follow:

Units in beginning work-in-process inventory 25,000

Units started during April1 155,000

Units completed during April 140,000

Units in ending work-in-process inventory 40,000

Direct materials added in current month $188,000

Conversion costs added in current month $175,000

Direct materials–beginning work-in-process inventory $35,750

Conversion costs–beginning work-in-process inventory $6,225

Stage of Completion:

Materials Conversion Costs

Beginning work-in-process inventory 100% 50%

Ending work-in-process inventory 100% 35%

Required:

A) Compute equivalent units for materials and conversion costs.

B) Compute the cost per unit for materials and conversion costs.

C) Compute the cost of the units transferred.

D) Compute the cost of the ending work-in-process inventory.

5) Splitsville Company has two departments. Factory overhead costs are applied based on direct labor cost in Department A and machine hours in Department B. The following information is available:

Budgeted Items Dept. A Dept. B

Direct labor cost $190,000 $165,000

Machine hours 51,000 50,000

Factory overhead cost $325,000 $280,000

Actual data for Job #10 are as follows:

Actual Items Dept. A Dept. B

Direct materials requisitioned $20,000 $16,000

Direct labor cost $17,000 $24,000

Machine hours 7,000 5,000

Required:

A) Compute the budgeted factory overhead rate for Department A.

B) Compute the budgeted factory overhead rate for Department B.

C) What is the total overhead cost for Job #10?

D) If Job #10 consists of 50 units of product, what is the unit cost of this job?