Ateneo de Zamboanga University
SCHOOL OF MANAGEMENT AND ACCOUNTANCY
Accounting 206: Cost Accounting and Cost Management, Part II
Midterm Examination Kelvin J. Culajara, BSA, CPA
Name: _____________________________________ Date: _______________ Score: __________
Test 1: Comprehensive Problem/Reporting
Assume that you are the newly-hired chief cost accountant of Wapayutana Company. As the chief officer, you are tasked to monitor the flow of costs throughout the process, and hence, you are accountable for the cost of production report which is done monthly. On your first day of work, you were summoned by the President of Wapayutana to orient you about the ins and outs of the company. He gave you the following information:
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Cost (in PhP)
Beginning inventory:
Materials 50,000 Direct labor 20,000 Factory overhead 20,000
Costs added on the month Materials 500,000 Direct labor 200,000 Factory overhead 200,000
Department 2: Mixing
Dec. 1, work in process
20,000
Transferred in
90,000
Dec. 31, work in process
10,000
*Beginning work in process is 3/4 complete, while ending work in process is 1/3 complete
Stage of completion in beginning and ending work in process refers to conversion costs.
Cost (in PhP)
Beginning inventory:
Transferred in 211,800 Material A 100,000 Material B 150,000 Direct labor 40,000 Factory overhead 40,000
Costs added on the month Material A 450,000 Material B 675,000 Direct labor 180,000 Factory overhead 180,000
Department 3: Bottling
Dec. 1, work in process
15,000
Transferred in
100,000
Dec. 31, work in process 5,000
*Beginning work in process is 2/3 complete while ending work in process is fully complete
Stage of completion in beginning and ending work in process refers to conversion costs.
Cost (in PhP)
Beginning inventory:
An accounting cycle is a process, or a series of activities, that consists of collecting an organization’s transactions at the end of a reporting period to prepare essential financial statements of a business (Fleury, 2015). The accounting cycle is a strict, methodical set of rules used to ensure the accuracy and conformity of financial statements (Investopedia, 2017). The steps involved with an accounting cycle, the roles each of the step facilitate, the impact of omission, and what financial statements are assembled from the accounting cycle data.
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5. Determine the necessary sales in unit and dollars to break-even or attain desired profit using the break-even formula.
price is $25 per share. The most recent dividend was $1 and the growth rate is 5%.
1a. One potential goal of earnings management is income smoothing. Briefly discuss why income smoothing might be a goal of management, including a discussion of incentives to smooth income. What techniques might be used to accomplish income smoothing beyond the selection of depreciation and inventory costing alternatives?
The standard costs and variances for direct materials, direct labor, and factory overhead for the month of May are as follows:
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uses budgeted fleet hours to allocate variable manufacturing overhead. The following information pertains to the company 's manufacturing overhead data:
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The case seeks to assist Zauner’s comptroller, Yu Chia-yi, in determining the best costing method for their overhead costs, in addition to
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Marvin Braun had just been appointed vice president of the Great Basin Region of the Financial Services Corporation (FSC). The company provides check processing services for small banks. The banks send checks presented for deposit or payment to FSC, which then records the data on each check in a computerized database. FSC sends the data electronically to the nearest Federal Reserve Bank check-clearing center where the appropriate transfers of funds are made between banks. The Great Basin Region consists of three check processing centers in Eastern Idaho—Pocatello, Idaho Falls, and Ashton. Prior to his promotion to vice president, Mr. Braun had been manager of a check processing
By: Charn Gek Cheng, Chiang Soo Ling, Kummar Sokali Muthu Mogan, Lee Siew Fen Samantha