Ac505 Practice Final
AC505 MANAGERIAL ACCOUNTING
PRACTICE FINAL
INSTRUCTIONS: Please fill in the blank for question 1 and select the appropriate response to questions 2 through 45.
1. Use the following information to determine the gross margin for Pacific States Manufacturing for the year just ended (all amounts are in thousands ($000) of dollars:
Sales $31,800 Purchases of direct materials 7,000 Direct labor 5,000 Work in process inventory, 1/1 800 Work in process inventory, 12/31 3,000 Finished goods inventory, 1/1 4,000 Finished goods inventory, 12/31 5,300 Accounts payable, 1/1 1,700 Accounts payable, 12/31 1,500 Direct materials inventory, 1/1 6,000 Direct materials inventory, 12/31 1,000 Indirect labor 600 Indirect materials used 500 Utilities expense, factory 1,900 Depreciation on factory equipment 3,500
Gross Margin _________________
2. Which costs will change with a decrease in activity within the relevant range? A) Total fixed costs and total variable cost. B) Unit fixed costs and total variable cost. C) Unit variable cost and unit fixed cost. D) Unit fixed cost and total fixed cost.
3. An increase in the activity level within the relevant range results in: A) an increase in fixed cost per unit. B) a proportionate increase in total fixed costs. C) an unchanged fixed cost per unit. D) a decrease in fixed cost per unit.
Use the following to answer questions 4-5:
The following information has been provided by the Evans Retail Stores, Inc., for the first quarter of the year:
Sales $350,000
Variable selling expense 35,000
Fixed selling expenses 25,000
Cost of goods sold (variable) 160,000
Fixed administrative expenses 55,000
Variable administrative expenses 15,000
4. The gross margin of Evans Retail
PRACTICE FINAL
INSTRUCTIONS: Please fill in the blank for question 1 and select the appropriate response to questions 2 through 45.
1. Use the following information to determine the gross margin for Pacific States Manufacturing for the year just ended (all amounts are in thousands ($000) of dollars:
Sales $31,800 Purchases of direct materials 7,000 Direct labor 5,000 Work in process inventory, 1/1 800 Work in process inventory, 12/31 3,000 Finished goods inventory, 1/1 4,000 Finished goods inventory, 12/31 5,300 Accounts payable, 1/1 1,700 Accounts payable, 12/31 1,500 Direct materials inventory, 1/1 6,000 Direct materials inventory, 12/31 1,000 Indirect labor 600 Indirect materials used 500 Utilities expense, factory 1,900 Depreciation on factory equipment 3,500
Gross Margin _________________
2. Which costs will change with a decrease in activity within the relevant range? A) Total fixed costs and total variable cost. B) Unit fixed costs and total variable cost. C) Unit variable cost and unit fixed cost. D) Unit fixed cost and total fixed cost.
3. An increase in the activity level within the relevant range results in: A) an increase in fixed cost per unit. B) a proportionate increase in total fixed costs. C) an unchanged fixed cost per unit. D) a decrease in fixed cost per unit.
Use the following to answer questions 4-5:
The following information has been provided by the Evans Retail Stores, Inc., for the first quarter of the year:
Sales $350,000
Variable selling expense 35,000
Fixed selling expenses 25,000
Cost of goods sold (variable) 160,000
Fixed administrative expenses 55,000
Variable administrative expenses 15,000
4. The gross margin of Evans Retail