Final Examination Booklet Managerial Accounting
1 Exxaamiinnaattiioonn Managerial Accounting Note: You should complete all lesson exams before you take the final exam. Complete the following exam by answering the questions and compiling your answers into a word-processing document. When you’re ready to submit your answers, refer to the instructions at the end of your exam booklet. Be certain to indicate the proper question number before each of your answers. Remember to show your work if an answer requires a mathematical solution. Answer each of the following 20 questions. Each answer is worth 5 points. 1. The work-in-process inventory account of a manufacturing company shows a balance of $3,000 at the end of an accounting period. The job-cost sheets of the two incomplete jobs show charges of $500 and $300 for direct materials, and charges of $400 and $600 for direct labor. From this information, it appears that the company is using a predetermined overhead rate as a percentage of direct labor costs. What percentage is the rate? 2. The break-even point in dollar sales for Rice Company is $480,000 and the company’s contribution margin ratio is 40 percent. If Rice Company desires a profit of $84,000, how much would sales have to total? 3. Williams Company’s direct labor cost is 25 percent of its conversion cost. If the manufacturing overhead for the last period was $45,000 and the direct material cost was $25,000, how much is the direct labor cost? EXAMINATION NUMBER: 06168501
2 Final Examination 4. Grading Company’s cash and cash equivalents consist of cash and marketable securities. Last year the company’s cash account decreased by $16,000 and its marketable securities account increased by $22,000. Cash provided by operating activities was $24,000. Net cash used for financing activities was $20,000. Based on this information, was the net cash flow from investing activities on the statement of cash flows a net increase or decrease? By how much? 5. Gladstone…