ACC 561 FINAL EXAM 1(Questions And Answers)

ACC 561 FINAL EXAM 1(Questions And Answers)1. Danner Corporation reported net sales of $650,000, $720,000, and $780,000 in the years 2016, 2017, and 2018, respectively. If 2016 is the base year, what percentage do 2018 sales represent of the base? a. 2018 net sales / base year 2016 net sales = 780,000 / 650,000 = 1.2 1.2 x 100% = 120% The answer is 120% 2. Ben Gordon, Inc. manufactures 2 products, wheels and seats. The company has estimated its overhead in the assembling department to be $660,000. The company produces 300,000 wheels and 600,000 seats each year. Each wheel uses 2 parts, and each seat uses 3 parts. How much of the assembly overhead should be allocated to wheels? a. Total parts = (300,000 x 2) + (600,000 x 3) = 2,400,000 /=0.275 0.275*= 3. At September 1, 2017, Baxter Inc. reported Retained Earnings of $423,000. During the month, Baxter generated revenues of $60,000, incurred expenses of $36,000, purchased equipment for $15,000 and paid dividends of $6,000. What is the balance in Retained Earnings at September 30, 2017? a. $441,000 (Sean) 4. The entry to record the acquisition of raw materials on account is: a. Raw Materials Inventory Accounts Payable 5. Financial and managerial accounting are similar in that both: a. deal with the economic events of an enterprise. 6. Which of the following is not an underlying assumption of CVP analysis? a. Cost Classification are reasonably accurate. 7. Henson Company began the year with retained earnings of $380,000. During the year, the company recorded revenues of $500,000, expenses of $380,000, and paid dividends of $40,000. What was Henson’s retained earnings at the end of the year? a. $460,000(Sean) 8. The Mac Company has four plants nationwide that cost $350 million. The current fair value of the plants is $300 million. The plants will be reported as assets at: a. $300,000 9. In performing a vertical analysis, the base for sales revenues on the income statement is: a. A: Net Sales (Noni)