Financial Accounting > QUESTIONS & ANSWERS > DeVry University, Chicago - ACCT505/ACCT 505 Week 8 Final Exam. (All)

DeVry University, Chicago - ACCT505/ACCT 505 Week 8 Final Exam.

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Week 8: Final Exam - Final Exam 1. (TCO E) Complying with regulations is a(n) (Points : 5) batch-level activity. product-level activity. unit-level activity. organization sustaining activity. ... 2. (TCO G) Given the following data, what would ROI be? Sales $90,000 Net operating income $18,000 Contribution margin $40,000 Average operating assets $100,000 Stockholder's equity $250,000 (Points : 5) 7.2% 20.0% 18.0% 44.4% Page 2 1. (TCO C) Madlem, Inc., produces and sells a single product whose selling price is $120.00 per unit and whose variable expense is $46.20 per unit. The company's fixed expense is $405,900 per month. Required: Determine the monthly breakeven in either unit or total dollar sales. Show your work! (Points : 25) Monthly Break Even Unit = Fixed Cost/(Sale Price - Variable Cost per unit) Monthly Break Even Unit = 405,900/(120-46.20) Monthly Break Even Unit = 5,500 Units Monthly Break Even in total dollar sales = Fixed Cost/contribution margin ratio Contribution margin ratio = (Sale Price - Variable Cost per unit)/Sale Contribution margin ratio = (120-46.20)/120 Contribution margin ratio =61.5% Monthly Break Even in total dollar sales = 405900/61.5% Monthly Break Even in total dollar sales = 660,000 2. (TCO B) Loxham Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below. Work in process, beginning: Units in beginning work in process inventory 400 Materials costs $6,900 Conversion costs $2,500 Percent complete for materials 80% Percent complete for conversion 15% Units started into production during the month 6,000 Units transferred to the next department during the month 5,400 Materials costs added during the month $112,500 Conversion costs added during the month $210,300 Ending work in process: Units in ending work-in-process inventory 1,000 Percentage complete for materials 80% Percentage complete for conversion 30% Required: Calculate the equivalent units for conversion for the month in the first processing department. (Points : 25) Units in beginning work in process inventory = 400 x 20% = 80 Units completed & transferred to the next department = 5,400 Units in ending work in process inventory = 1,000 x 80% = 800 Total Equivalent units for materials for the month = 6,280 units [Show More]

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