UNIVERSITY OF LOUISIANA, LAFAYETTE ACCT 526 MID TERM EXAM. 100% VERIFIED Q AND A.

University of Louisiana, Lafayette ACCT 526 Mid Term Exam. 100% Verified Q And A. Started on Tuesday, February 15, 2022, 6:09 PM State Finished Completed on Tuesday, February 15, 2022, 7:09 PM Time taken 59 mins 11 secs Points 29.00/33.00 Grade87.88 out of 100.00 Question 1 Correct 1.00 points out of 1.00 Flag question Question text ULL Co. manufactures and sells 2,000 units of its product at a price of $30 per unit in a given year. Its per unit product cost is $13 per unit. ULL Co. also has selling and administrative expenses of $3,000. What is ULL Co.’s gross margin? a. $60,000 b. $31,000 c. $57,000 d. $34,000 Feedback Gross margin is revenue minus COGS. Revenue= price x number of units sold, COGS = unit product cost x number of units sold. Revenue= $30 x 2,000= $60,000 COGS= $13 x 2,000= $26,000 Gross margin= $60,000- $26,000= $34,000 The correct answer is: $34,000 Question 2 Incorrect 0.00 points out of 1.00 Flag question Question text If beginning work-in-process inventory is $110,000, ending work-in-process inventory is $140,000, cost of goods manufactured is $500,000 and direct materials used are $150,000, what are the conversion costs? a. $300,000 b. $380,000 c. $350,000 d. $340,000 Feedback The standard Cost of Goods Manufactured formula is: Direct Labor + Manufacturing Overhead + Direct Materials + Beginning Work in Progress- Ending Work in Progress= COGM. The problem gives us most of the pieces and allows us to combine Direct Labor and Manufacturing Overhead (conversion costs) as one