ACCT 2521 FINAL EXAM UPDATED ACTUAL QUESTIONS AND CORRECT ANSWERS

ACCT 2521 FINAL EXAM UPDATED ACTUAL QUESTIONS
AND CORRECT ANSWERS

Question:
1. managerial vs. financial accounting
Answer:
financial
- externals
- historical
- GAAP
managerial
- internal (same data)
- future
- no GAAP

Question:
2. product cost
Answer:
direct materials, direct labor, & MOH (expensed when goods sold)
-inventory -> balance sheet ~ sale ~
- COGS -> income statement ex: wood used in a table, labor to assemble a table, cost of electricity at the
factory inventoriable cost

Question:
3. period cost
Answer:
selling, general, & administrative costs; non-manufacturing costs expensed immediately when incurred ex:
salary of administrative secretary, sales commissions advertising and depreciation are always fixed !!!!

Question:
4. how to calculate prime costs
Answer:
DM + DL

Question:
5. how to calculate conversion costs
Answer:
DL + MOH

Question:
6. variable costs
Answer:
increase as activity increases, decreases as activity decreases (direct proportion) per unit- remain constant
ex: cost of electricity at factory

, Question:
7. fixed costs
Answer:
in total- remain constant per unit- increase as activity decreases, decrease as activity increases (inverse
proportion) ex: salary of factory supervisor

Question:
8. how to calculate COGS
Answer:
beg inventory + purchases = goods available
- ending inventory = COGS

Question:
9. traditional income statement
Answer:
sales
- COGS = gross profit
- OE = NI

Question:
10. contribution margin income statement
Answer:
sales
- VC = CM
- FC = NI

Question:
11. companies that might use job order costing
Answer:
job shop, batch production

Question:
12. how to calculate predetermined overhead rate
Answer:
estimated MOH cost/estimated activity base

Question:
13. how to calculate over/underapplied MOH
Answer:
applied MOH
- actual MOH = over/under applied

Question:
14. COGS manufactured
Answer:
beg RM + purchases = goods avail
- ending RM = DM (used)