Ac505 Page 1 Final Essay

712 Words Feb 13th, 2011 3 Pages
1. (TCO A) Wages paid to the factory supply shop foreman are considered an example of: (Points: 5) Direct Labor - yes, Period Cost - yes Direct Labor - yes, Period Cost - No Direct Labor - no , Period Cost - yes Direct Labor - no , Period Cost - no

2. (TCO A) Rent on a manufacturing plant is an element of: (Points: 5) Conversion cost - yes, period cost - no Conversion cost - yes, period cost - yes Conversion cost - no, period cost - yes Conversion cost - no, period cost - no

3. (TCO B) Evergreen Corp. has provided the following data:

Sales per period 1,000 units
Selling price
…show more content…
$3
Fixed costs in total:
Production................................................. $32,000
Selling and administrative........................... $16,000 Last year there were no beginning inventories, 8,000 units were produced, and 7,800 units were sold.

Under variable costing, the unit product cost would be:
(Points: 5) $5 $8 $9 $11

6. (TCO F) Sagon Corporation has provided data concerning the company's Manufacturing Overhead account for the month of September. Prior to the closing of the overapplied or underapplied balance to Cost of Goods Sold, the total of the debits to the Manufacturing Overhead account was $76,000 and the total of the credits to the account was $66,000. Which of the following statements is true? (Points: 5) Manufacturing overhead transferred from Finished Goods to Cost of Goods Sold during the month was $76,000 Actual manufacturing overhead incurred during the month was $66,000 Manufacturing overhead applied to Work in Process for the month was $76,000 Manufacturing overhead for the month was underapplied by $10,000

7. (TCO G) Some investment projects require that a company increase its working capital. Under the net present value method, the investment and eventual recovery of working capital should be treated as: (Points: 5) an initial cash outflow. a future cash inflow. both an initial cash outflow and a future cash inflow.

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