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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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)

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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)

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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.

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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.)

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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)

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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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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

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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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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)

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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.

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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.

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