Exam 3 Review Packet \u2013 Tuesday, December 13th \u2013 8-10am<\/p>\n
Please read the important information below regarding Exams:<\/p>\n
Please arrive at the classroom 10 minutes early to start the exam on time <\/p>\n
You need to bring and show your UAlbany ID card<\/p>\n
You need at least 2 writing utensils and a calculator<\/p>\n
Graphing Calculators are not allowed at the exam- Please bring your own basic non-graphing calculator<\/p>\n
The exam is 40 questions \u2013 multiple choice and True\/False<\/p>\n
Topical Outline<\/p>\n
Chapter 7:<\/p>\n
Know the detailed line items of the CM Income Statement<\/p>\n
Understand the differences between Absorption Costing and Variable Costing and when each is utilized<\/p>\n
Be able to identify and calculate period costs for Variable Costing vs Absorption Costing<\/p>\n
Be able to identify and calculate product costs (WIP, FG, COGS) for Variable Costing and Absorption Costing<\/p>\n
Understand and be able to calculate NOI for Absorption Costing and Variable Costing<\/p>\n
Know which costing method follows GAAP<\/p>\n
Know examples of product vs period costs for Variable and Absorption Costing<\/p>\n
Know examples of variable manufacturing costs vs fixed manufacturing costs and how each is treated under Variable vs Absorption Costing<\/p>\n
Know examples of variable period costs and fixed period costs under each Costing method<\/p>\n
Know what costs are part of Finished Goods Inventory for Absorption costing vs Variable costing methods<\/p>\n
Know how Net Income differs between Variable and Absorption costing given the relationships between sales units and units produced<\/p>\n
Understand which costs are \u201cexpensed as incurred\u201d under Absorption vs Variable costing<\/p>\n
Chapter 8:<\/p>\n
Be able to calculate budgeted cash collections if given credit sales and collection percentage patterns<\/p>\n
Know the difference between Cash sales and Credit sales<\/p>\n
Know the factors that drive the initial Sales Budget as part of the Master Budget<\/p>\n
Be able to calculate the budgeted units of production and know the formula utilized<\/p>\n
Be able to calculate the Expected cash borrowings to achieve a desired ending cash balance in the Cash Budget<\/p>\n
Be able to calculate budgeted Accounts Receivable balance if given credit sales and collection percentage patterns<\/p>\n
Know the order of line items in the Cash Budget<\/p>\n
Know the order that Master Budget schedules are prepared and its preparers<\/p>\n
Understand the purpose of the Master Budget and how each schedule is dependent and interrelated with all other schedules <\/p>\n
Understand the benefits of Budgeting, when they are utilized, and requirements for public companies<\/p>\n
Chapter 9:<\/p>\n
Be able to create a Flexible Budget if given expense or revenue formulas<\/p>\n
Understand why Flexible Budgets are created\/utilized vs Static\/Planning Budgets<\/p>\n
Be able to calculate the Spending and Revenue Variances in a Performance Evaluation Report <\/p>\n
Be able to identify a Revenue or Spending Variance as Favorable\/Unfavorable<\/p>\n
Know what schedules to use in creating a Performance Evaluation<\/p>\n
Know the differences (and similarity) between a Planning and Flexible Budget and when each should be used and created<\/p>\n
Know and understand the steps in the Variance Analysis Cycle<\/p>\n
Know the root-cause\/underlying reasons for Favorable\/Unfavorable Materials Price\/Quantity variances<\/p>\n
Know what STANDARDS are (definition)<\/p>\n
Be able to calculate DMQV (direct materials quantity variance)<\/p>\n
Be able to calculate DMPV (direct materials price variance)<\/p>\n
Know how standards are set\/by whom<\/p>\n
Know what steps an organization may take after receiving variance explanations<\/p>\n
Computational Questions<\/p>\n
Danny Corp is preparing its cash budget for May. The budgeted beginning cash balance is $13,750. Budgeted cash receipts from Customers during the month is estimated to be $279,000, and cash disbursements in the amount of $315,000. Danny Corp has a desired ending cash balance of $30,000 minimum. How much should Danny Corp budget to borrow in the month of May? What is the surplus (excess) or deficiency (shortage)?<\/p>\n
The following credit sales were budgeted for Palen Inc.<\/p>\n
July $312,000<\/p>\n
August $249,500<\/p>\n
September $156,000<\/p>\n
October $95,000<\/p>\n
Palen Inc has indicated the following collection patterns for credit sales: 70% in the month of the sale, 20% in the month following the sale, 10% in the second month following the sale.<\/p>\n
What amount of estimated cash collections should be entered on the cash Budget for the month of September?<\/p>\n
What should Palen Inc record as its Budgeted Accounts Receivable Balance in its pro forma balance sheet for month-end September?<\/p>\n
Calculate the Net Operating Income for Lester Holdings using Variable Costing when 8,000 units are produced.\u00a0 At Lester Holdings, variable manufacturing costs are $80 per unit, fixed manufacturing overhead costs are $32,000, and Selling and Administrative expenses are fixed during the period for $15,000.\u00a0 Sales are 3,200 units at a sales price of $100 per unit.<\/p>\n
Calculate the Net Operating Income for Lester Holdings using Absorption Costing when 8,000 units are produced.\u00a0 At Lester Holdings, variable manufacturing costs are $80 per unit, fixed manufacturing overhead costs are $32,000, and Selling and Administrative expenses are fixed during the period for $15,000.\u00a0 Sales are 3,200 units at a sales price of $100 per unit.<\/p>\n
Use the following data below for Earthlings Inc. to answer costing questions:<\/p>\n
Selling Price: $137<\/p>\n
Units in Beginning inventory: 0<\/p>\n
Units produced: 1,430<\/p>\n
Units sold: 1,400<\/p>\n
Units in ending inventory: 30<\/p>\n
Variable cost per unit:<\/p>\n
Direct Materials: $41<\/p>\n
Direct Labor: $7.50<\/p>\n
Variable Manufacturing Overhead: $15<\/p>\n
Variable Selling and administrative: $7.50<\/p>\n
Fixed costs:<\/p>\n
Fixed manufacturing overhead: $56,000<\/p>\n
Fixed selling and administrative: $14,500<\/p>\n
Calculate the total period cost for the month under Variable Costing.<\/p>\n
Calculate the Variable Costing unit product cost.<\/p>\n
Calculate NOI under Variable and Absorption Costing<\/p>\n
Katy\u2019s lawn service has created the following cost formula for its operating costs: $1,350 per month and $55 per lawn. In June, Katy\u2019s estimated that it would service 150 lawns in July. In August, Katy\u2019s reviewed its July results. Actual costs were $10,150 and Katy\u2019s serviced 155 lawns. What was the spending variance for July? Was it favorable or unfavorable?<\/p>\n
What was the total estimated operating cost for July\u2019s planning\/static budget? What is the purpose of creating the planning\/static budget?<\/p>\n
Katy earned a total of $17,450 in August. She estimated she would charge $95 per lawn and she mowed 215 lawns. What was Katy\u2019s revenue variance for August and was if favorable or unfavorable?<\/p>\n
Calculate the Direct Materials Price Variance and the Direct Materials Quantity Variance given the data below:<\/p>\n
Actual production<\/p>\n
27,500 units<\/p>\n
Materials:<\/p>\n
\u00a0<\/p>\n
\u00a0\u00a0Standard price per ounce<\/p>\n
$6.50<\/p>\n
\u00a0\u00a0Standard ounces per completed unit<\/p>\n
8<\/p>\n
\u00a0\u00a0Actual ounces purchased and used in production<\/p>\n
228,000 Total ounce.<\/p>\n
8.29 ounces per unit<\/p>\n
\u00a0\u00a0Actual price paid for materials<\/p>\n
$1,504,800 Total Cost<\/p>\n
$6.6 per ounce<\/p>\n
What are the possible reasons for the variances calculated above?<\/p>\n","protected":false},"excerpt":{"rendered":"
Exam 3 Review Packet \u2013 Tuesday, December 13th \u2013 8-10am Please read the important information below regarding Exams: Please arrive at the classroom 10 minutes early to start the exam on time You need to bring and show your UAlbany ID card You need at least 2 writing utensils and a calculator Graphing Calculators are […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[10],"class_list":["post-107032","post","type-post","status-publish","format-standard","hentry","category-research-paper-writing","tag-writing"],"_links":{"self":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/107032","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/comments?post=107032"}],"version-history":[{"count":0,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/107032\/revisions"}],"wp:attachment":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/media?parent=107032"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/categories?post=107032"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/tags?post=107032"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}