Accounting Problems and MC
ms_ash
acct_2014_answer_sheet.docxPart I. Comprehensive problems. Place answers below each question.
1. Points = 4
Instructions
Determine the incremental income or loss that Hayes Enterprises would realize by accepting the special order.
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2. Points = 4
Instructions
Prepare an incremental analysis, which shows the effect of the make-or-buy decision.
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3. Points = 12
Instructions
Prepare the net cash provided by operating activities section of the company's statement of cash flows for the year ended December 31, 2014, using the indirect method.
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4. Points = 10
Instructions
Mimi Manufacturing Company uses a job order cost accounting system and keeps perpetual inventory records. Prepare journal entries to record the following transactions during the month of June. (Indent credit accounts)
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Date:
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Account |
Debit |
Credit |
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5. Points = 12
Instructions
Complete the Production Cost Report for the Molding Department for the month of May using the above information and the information below.
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Equivalent Units |
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QUANTITIES |
Physical Units |
Materials |
Conversion Costs |
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Work in process, May 1 |
7,000 |
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Started into production |
28,000 |
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Total units |
35,000 |
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Units accounted for: |
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Transferred out |
30,000 |
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Work in process, May 31 |
5,000 |
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Total units |
35,000 |
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COSTS |
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Unit costs |
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Materials |
Conversion Costs |
Total |
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Costs in May |
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$140,000 |
$160,000 |
$300,000 |
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Equivalent units |
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Units costs |
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Costs to be accounted for |
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Work in process, May 1 |
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$60,000 |
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Started into production |
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240,000 |
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$300,000 |
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Cost Reconciliation Schedule |
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Costs accounted for: |
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Transferred out |
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Work in process, May 31: |
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….Materials |
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….Conversion costs |
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Total costs
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$300,000 |
6. Points = 8
Instructions
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(a) |
Prepare the responsibility reports for the Mixing Department for each month.
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· F = Favorable variance · U = Unfavorable variance
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(b) Comment on the manager's performance in controlling costs during the two-month period.
Part II: 25 Multiple Choice Questions @ 2 points each = 50 points.
Place answers in the table below:
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1. |
6. |
11. |
16. |
21. |
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2. |
7. |
12. |
17. |
22. |
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3. |
8. |
13. |
18. |
23. |
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4. |
9. |
14. |
19. |
24. |
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5. |
10. |
15. |
20. |
25. |
FinalSUMNIll9287jhd72g
