Southern Illinois University General Accounting Questions FILLER TEXT Question 1 (8 points) Ocean City Kite Company manufactures & sells kites for $7.50
Southern Illinois University General Accounting Questions FILLER TEXT
Question 1 (8 points)
Ocean City Kite Company manufactures & sells kites for $7.50 each. The variable cost per kite is $2.00 with the current annual sales volume of 60,000 kites. This volume is currently Ocean City Kite’s breaking even point. Use this information to determine the dollar amount of Ocean City Kite Company’s fixed costs. (Round dollar value to the nearest whole dollar & enter as whole dollars only.)
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Your Answer:Question 1 options:AnswerFILLER TEXT
Question 2 (9 points)
Ocean City Kite Company sells kites for $11.00 per kite. In FY 2019, total fixed costs are expected to be $210,000 and variable costs are estimated at $3.50 a unit. Ocean City Kite Company wants to have a FY 2019 operating income of $70,000. Use this information to determine the number of units of kites that Ocean City Kite Company must sell in FY 2019 to meet this goal. (Round your answer to a whole number)
Your Answer:Question 2 options:AnswerFILLER TEXT
Question 3 (8 points)
The following totals are used to create a CVP Income Statement for Frederick Company for FY2018:
Frederick Company
Selected Financial Figures
For the Year Ended 12/31/18
Sales (100 units)
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$10,000
Variable Costs:
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Direct Labor
$1,100
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Direct Materials
1,650
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Factory Overhead (variable)
2,000
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Selling Expenses (variable)
600
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Administrative Expenses (variable)
500
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Fixed Costs:
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Factory Overhead (fixed)
$550
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Selling Expenses (fixed)
1,000
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Administrative Expenses (fixed)
1,000
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Frederick Company utilizes a JIT production system and there are no Raw Materials, Work-in-Process or Finished Goods inventories. Use this information to determine FY 2018 Contribution Margin Percentage. Enter percentage to one decimal place. (example enter 35.5% as 35.5)
Your Answer:Question 3 options:AnswerFILLER TEXT
Question 4 (9 points)
The following totals are used to create a CVP Income Statement for Frederick Company for FY2018:
Frederick Company
Selected Financial Figures
For the Year Ended 12/31/18
Sales (100 units)
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$10,000
Variable Costs:
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Direct Labor
$1,500
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Direct Materials
1,500
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Factory Overhead (variable)
2,000
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Selling Expenses (variable)
600
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Administrative Expenses (variable)
500
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Fixed Costs:
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Factory Overhead (fixed)
$900
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Selling Expenses (fixed)
1,000
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Administrative Expenses (fixed)
1,000
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Frederick Company utilizes a JIT production system and there are no Raw Materials, Work-in-Process or Finished Goods inventories. Use this information to determine the FY 2016 breakeven point in units. Round and enter as a whole number.
Your Answer:Question 4 options:AnswerFILLER TEXT
Question 5 (9 points)
Adelphi Company has budgeted activity for March to reflect net income $155,000. All sales are credit sales. Receivables are planned to increase (decrease -) by $-9,000 payables to increase (decrease -) by $-17,000 and Depreciation Expense is $52,000. Use this information to determine how much cash will increase (decrease) during the month of March. (Decreases in accounts receivable or accounts payable will have a negative sign in front of number. Round & enter final answer to the nearest whole dollar.)
Your Answer:Question 5 options:AnswerFILLER TEXT
Question 6 (8 points)
During FY 2018, Adelphi Company reported sales of $400,000, a contribution margin of $6.00 per unit, fixed costs of $75,000, and net income of $30,000. Use this information to determine the number of units Adelphi sold during FY 2018. (Round answer to nearest whole number)
Your Answer:Question 6 options:AnswerFILLER TEXT
Question 7 (8 points)
Towson Company manufactures book cases, and each requires 22 board feet of lumber. Towson expects that 1,900 and 1,850 book cases will be built in June and July, respectively. Towson keeps lumber on hand at 40% of the next month’s production needs. Use this information to determine number board feet of lumber that Towson Company should buy in June. (Round & enter final answers to the nearest whole number.)
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Your Answer:Question 7 options:AnswerFILLER TEXT
Question 8 (9 points)
Annapolis Company has two service departments (Computer Operations & Maintenance Services). Annapolis has two production departments (Mixing Department & Packaging Department.) Annapolis uses a direct allocation method where service departments are allocated only to production departments. All allocations are based on total employees. Computer Operations has costs of $160,000 and Maintenance Services has costs of $150,000 before any allocations. What amount of Maintenance Services total cost is allocated to the Packaging Department? (round to closest whole dollar) Employees are:
Computer Operations 2
Maintenance Services 2
Mixing Department 5
Packaging Department 4
Your Answer:Question 8 options:AnswerFILLER TEXT
Question 9 (8 points)
Annapolis Company has two service departments (Computer Operations & Maintenance Services). Annapolis has two production departments (Mixing Department & Packaging Department.) Annapolis uses a step allocation method where the Computer Operations Department is allocated to all departments and Maintenance Services is allocated to the production departments. All allocations are based on total employees. Computer Operations has costs of $150,000 and Maintenance Services has costs of $165,000 before any allocations. What amount of Maintenance Services total cost is allocated to the Mixing Department? (round to closest whole dollar) Employees are:
Computer Operations 3
Maintenance Services 3
Mixing Department 6
Packaging Department 5
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Your Answer:Question 9 options:AnswerFILLER TEXT
Question 10 (8 points)
Adelphi Company provides the following information for their first year of operations in 2018:
Sales, 9,000 units @ $18 each
Total production, 12,000 units
FILLER TEXTProduction costs per unit:
Direct materials$4.00
Direct labor$4.00
Variable overhead$1.00
Fixed manufacturing overhead$11,000
Adelphi Company uses absorption costing. Use this information to determine for Adelphi Company the FY 2018 Cost of Goods Sold. (Round & enter final answer to the nearest whole dollar)
Your Answer:Question 10 options:AnswerFILLER TEXT
Question 11 (8 points)
Bowie Sporting Goods manufactures sleeping bags. The manufacturing standards per sleeping bag, based on 5,000 sleeping bags per month, are as follows:
Direct material of 4.50 yards at $5.00 per yard
Direct labor of 2.00 hours at $17.00 per hour
Overhead applied per sleeping bag at $20.00
In the month of April, the company actually produced 5,200 sleeping bags using 27,300 yards of material at a cost of $6.10 per yard. The labor used was 11,700 hours at an average rate of $19.50 per hour. The actual overhead spending was $96,200.
Determine the total materials variance and round to the nearest whole dollar. Enter a favorable variance as a negative number. Enter an unfavorable variance as a positive number.
Your Answer:Question 11 options:AnswerFILLER TEXT
Question 12 (8 points)
Bowie Sporting Goods manufactures sleeping bags. The manufacturing standards per sleeping bag, based on 5,000 sleeping bags per month, are as follows:
Direct material of 5.00 yards at $5.75 per yard
Direct labor of 2.00 hours at $18.00 per hour
Overhead applied per sleeping bag at $17.00
In the month of April, the company actually produced 5,200 sleeping bags using 27,300 yards of material at a cost of $6.10 per yard. The labor used was 11,700 hours at an average rate of $19.50 per hour. The actual overhead spending was $96,200.
Determine the labor rate variance and round to the nearest whole dollar. Enter a favorable variance as a negative number. Enter an unfavorable variance as a positive number.
Your Answer:Question 12 options:Answer
