ACCT 215 Final, Fall 2004

AMERICAN UNIVERSIT LIBRARY | OF PLIRUT American University of Beirut Olayan School of Business Final Exam — ACCT 215 Time: 2 hrs. January 19, 2005 Multiple Choice: 20 points 5 Rit 1. The following sales budget has been prepared: Month Cash Sales Credit Sales September $100,000 $200,000 6: October 125,000 180,000 4 RPO November 130,000 210,000 ®¢,,03- December 135,000 190,000 Collections of credit sales are 50. percent in the month of sale, 40 percent in the month following the sale, and !0 percent two months following the sale. No oc uncollectible accounts are anticipated. B30 Casn cate» Go What is the expected balance of Accounts Receivable as of October 31? PLEO “a. $110,000 = 24 ee b. $180,000 c. $118,000 d. $72,500 2. Preparing the master budget begins by establishing a. a targeted balance sheet. b. a targeted income statement. c. the expected cash. ~pd. the expected sales. 3. A major drawback of using historical results for judging current performance is that a. past results may be incorrect. b. results may refer to a different manager. c. inefficiencies maybe concealed in the past performance. -p d. all of the above. ; a 4. The master budget typically includes forecasted amounts for all of the following EXCEPT a. sales. ~Wb. number of employees. c. balance sheets. d..-cash disbursements. _ Problem 3: 16 points i Big Sales and Large Sales are two sportswear manufacturing companies in the U.S. Given below is selected information for these two companies for 20X1 and 20X6. BigSales Large Sales Customer orders 20X1 2,300,000 2,700,000 20X6 2,600,000 3,400,000 Number ofemployees 20X1 1,000 1,200 20X6 1,200 1,400 Required: a. Compute the 20X1 and 20X6 productivity measures in terms of customer orders per employee for Big Sales and Large Sales. b. Compare the change in productivity between 20X1 and 20X6 for Big Sales and Large Sales. Do you note any problem areas? -p & Both companies have taken on extensive quality control programs as part of their competitive strategies. Classify each of the following quality costs as: prevention, appraisal, internal failure or external failure. 36 ecu Reon Adc : 1. Disposal of spoiled work-in-process AFP aan 2. Downtime due to quality problems 74+, 3. Field-testing Rev- 4. Maintaining a complaint department Prev 5.—Quality raining ~ Prev 6. Testing.and.inspecting ofmachinery =P. .y. 7. Warranty Tepaits - roblem 4: 16 points 0 Rainbow Company uses a job-order costjng system. It has gathered the following data for * the first year of its operations: ; Direct materials purchased for cash $26,000 Direct materials used in production 20,000 Direct Jabor costs incurred on account 40,000 Factory overhead costs incurred, all on account 35,000 Factory overhead applied (90 percent of direct labor) HOY Cost of goods completed 80,000 Cost of goods sold 75,000 ‘ © Required : Prepare general joumal entries for the above transactions. Close the over or under applied factory overhead to the appropriate accounts. Follow the pro-ration method. Compute the balances in the three inventory accounts and the cost of goods sold account. Ore sa eo / Problem 5: 16 points Oder Bemic Company produces one product in a process-costing system involving several departments. The first department’s costs and output for the month of April are as follows: Beginning WIP* Started during April 140,000 Completed during April 120,000 Ending WIP** 35,000 Beginning WIP: + Direct materials $25,750 Conversion costs 3,225 $ 28,975 Direct materials added in current month 168,000 Conversion costs in current month ae 186,000 - Total costs to account for $382,975 * 100 percent completed for materials, 40 percent completed for conversion costs. ** 100 percent completed for materials, 30 percent completed for conversion costs. Required: Compute the cost of work completed and the cost of the ending inventory of work-in- Sy process using the weighted-average method. = _ ap pcan Good Luck!!! AJ OVE: ACY, Se 609 24104 (2008 o Cancer are On FTLO oe carer? AWS ‘. fo DM 9 CO AVR ES TON chew use Awe WIP, DI Qinnlug . 7