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ACCT 301 Quiz Make Up Questions

Professor Lazarus

In order to help you, I am providing an opportunity to make up some of the lost points on any quiz. You can use this make up quiz to earn points on any one quiz where you scored low. Select any question or combination of questions to answer. I have assigned points against each question. Your answer sheet must indicate which quiz you want me to add any points you earn in this make up. You can only make up point s in any one of the quizzes. The maximum make up points you can earn is capped at 30 points and cannot exceed 70% for that quiz after make up points are added. The question(s) you select do not have to tie in to the chapter coverage for the quiz that you are trying to earn make up points. You must provide supporting computations in good form.

Your submission is due via email to me by 11.59 pm July 31.. Indicate on your subject line, “ Make Up Quiz”. Your responses must be typed up in Word or Excel.

Good Luck !

Problem 1. 15 points

. Morgana Engineering was organized on August 1 of the current year. Projected sales for the next three months are as follows:

August	$100,000
September	185,000
October	225,000

The company expects to sell 40% of its merchandise for cash. Of the sales on account, one third are expected to be collected in the month of the sale and the remainder in the following month.

Prepare a schedule indicating cash collections of accounts receivable for August, September, and October.

ANS:

Morgana Engineering . Schedule of Collections of Accounts Receivable For Three Months Ending October 31, 20--
	August	September	October

Problem 2. 15 points

. The following information is for the standard and actual costs for Chesapeake Bay Corporation.

Standard Costs:

Budgeted units of production - 16,000 (80% of capacity)

Standard labor hours per unit - 4

Standard labor rate $26 per hour

Standard material per unit - 8 lbs.

Standard material cost - $ 12 per lb.

Budgeted fixed overhead $640,000

Standard variable overhead rate - $15 per labor hour.

Fixed overhead rate is based on budgeted labor hours at 80% capacity.

Actual Cost:

Actual production - 16,500 units

Actual fixed overhead - $640,000

Actual variable overhead - $1,000,000

Actual labor - 65,000 hours, total labor costs $1,700,000

Actual material purchased and used - 130,000 lbs, total material cost $1,600,000

Actual variable overhead - $1,000,000

Determine: (a) the quantity variance, price variance, and total direct materials cost variance; (b) the time variance, rate variance, and total direct labor cost variance; and (c) the volume variance, controllable variance, and total factory overhead cost variance.

Ans:

(a)

(b)

( c )

Problem 3: 6 points

. Rajiv Company has been purchasing a component, Part Q, for $18.90 a unit. Rajiv is currently operating at 70% of capacity and no significant increase in production is anticipated in the near future. The cost of manufacturing a unit of Part Q, determined by absorption costing methods, is estimated as follows:

Direct materials	$11.25
Direct labor	4.50
Variable factory overhead	1.12
Fixed factory overhead	3.15
Total	$20.02
	======

Prepare a differential analysis report, dated March 12 of the current year, on the decision to make or buy Part Q.

Ans

Problem 4. 12 points

. Brielle Company had stock outstanding as follows during each of its first three years of operations: 2,500 shares of $10, $100 par, cumulative preferred stock and 50,000 shares of $10 par common stock. The amounts distributed as dividends are presented below. Determine the total and per share dividends for each class of stock for each year by completing the schedule.

		Preferred	Common
Year	Dividends	Total	Per Share	Total	Per Share
1	$10,000	_________	_________	_________	__________
2	25,000	_________	_________	_________	__________
3	60,000	_________	_________	_________	__________

ANS:

		Preferred	Common
Year	Dividends	Total	Per Share	Total	Per Share
1
2
3

Problem 5. 12 points

. Indicate whether the following actions would (+) increase, (-) decrease, or (0) not affect a company's total assets, liabilities, and stockholders' equity.

				Stockholders'
		Assets	Liabilities	Equity
(1)	Declaring a cash dividend	_______	_______	_______
(2)	Paying the cash dividend
	declared in (1)	_______	_______	_______
(3)	Declaring a stock dividend	_______	_______	_______
(4)	Issuing stock certificates
	for the stock dividend
	declared in (3)	_______	_______	_______

ANS:

				Stockholders'
		Assets	Liabilities	Equity
(1)	Declaring a cash dividend
(2)	Paying the cash dividend
declared in (1)
( 3) Declaring a stock dividend
( 4) Issuing stock certificates
for the stock dividend
declared in (3)