Exam 2

Question 1

How do you Calculate operating income

Answer 1

Revenue -Cost of Goods Sold = Gross Profit - Variable Costs = Operating Income

Question 2

How do you calculate Gross margin Percentage

Answer 2

Gross Margin/Revenue

Question 3

How do you calculated Sales Volume Variance

Answer 3

Sales Volume Variance = (Actual Units Sold - Budgeted Units Sold) x Contribution Margin Per Unit

Question 4

How do you calculate Sales Mix Variance

Answer 4

Sales Mix Variance = Actual Units sold of ALL units x (Actual sales mix -Budgeted Sales Mix) x Budgeted Contribution Margin

Question 5

How do you calculate Sales Quantity Varience

Answer 5

Sales Quantity Variance = (Actual units of ALL units sold-Budgeted units of ALL units sold) x Budgeted Sales Mix x Budgeted Contribution Margin

Question 6

How do you calculate Flexible Budget Variance

Answer 6

Actual units of ALL units Sold x Actual Sales Mix x Budgeted Contribution Margin

Question 7

How do you calculate Static Budget Variance

Answer 7

Flexible Budget Variance and Sales Volume Variance Added Together or subtracted depending on the favorable unfavorable results

Question 8

how is weighting determined in physical measurement method

Answer 8

by the total number of a product produced

Question 9

how is weighting determined in a NRV method

Answer 9

weighting is determined after all the separable costs are taken out and then based on the total weightings are determined

Question 10

How is weighting determined in split-off method

Answer 10

weighting is determined by the costs of each products at the split-off points

Question 11

How is weighting determined in NRV gross margin method

Answer 11

their is no weighting gross margin is determined by subtracting the revenues from the separable and joint costs then gross margin percentage is subtracted from each products revenues to calculate production costs and then separable costs are subtracted from production costs to determine the amount of joint costs allocated to each product

Question 12

how is the cost per product determined

Answer 12

by adding the joint and separable costs and then dividing the amount by the total units produced

Question 13

how are costs allocated in the stand alone method

Answer 13

costs are allocated by taking weighted average of the costs that would have been incurred had costs not been consolidated and then that weighted average is multiplied by the cost of event

Question 14

how are costs allocated in the incremental method

Answer 14

in the incremental method the one cost is determined to be the primary cost which is the cost if the goods hadn’t been consolidated then the secondary cost is figured by subtracting the primary cost from the current cost

Question 15

how are costs allocated in the shapely method

Answer 15

an average of the incremental costs where the both the primary and the secondary

Question 16

how do you calculate physical units in the weighted average method

Answer 16

you add the beginning inventory and the units that were started in the period

Question 17

how do you calculate physical units in the FIFO method

Answer 17

you add the beginning inventory and the units that were started in the period

Question 18

how do you calculate equivalent units using the weighted average method

Answer 18

equivalent units are the units that were completed and transferred out and the ending inventory is multiplied by the percentage completed to

Question 19

how do you calculate equivalent units using the FIFO method

Answer 19

equivalent units are calculated by multiplying the beginning inventory by 1- %age of goods completed in the previous period adding the goods completed and transferred out and then adding in the ending inventory multiplied by the %age of work completed

Question 20

how do you total cost in the weighted average method

Answer 20

add BI cost with costs added in

Question 21

how do you calculate total cost in the FIFO method

Answer 21

add BI cost with costs added in

Question 22

how do you calculate unit costs in Weighted average method

Answer 22

you take the total cost and divide by the equivalent units

Question 23

how do you calculate unit costs in the FIFO method

Answer 23

you take the COSTS ADDED IN and divide them by the equivalent units

Question 24

how do you calculate total costs of goods completed and transferred out in weighted average method

Answer 24

you take the UNIT COST and multiply them by the equivalent units

Question 25

how do you calculate ending inventory in the weighted average method

Answer 25

you take the UNIT COST and multiply them by the equivalent units

Question 26

how do you calculated total costs of beginning inventory in the FIFO method

Answer 26

you take the beginning inventory costs and add in the costs that were added for the units completed in the current period

Question 27

how do yo calculate the total costs of completed and transferred out inventory in the FIFO method

Answer 27

you take the UNIT COST and multiply them by the equivalent units

Question 28

how do you calculate ending inventory in the FIFO method

Answer 28

you take the UNIT COST and multiply them by the equivalent units

Question 29

What is the journal entry for dealing with the direct costs

Answer 29

WIP Assembly

A/P Control

Question 30

What is the journal entry for dealing with conversion costs

Answer 30

WIP Assembly

Various Accounts

Question 31

What is the journal entry for dealing with goods completed and transferred out

Answer 31

WIP Testing

WIP Assembly

Question 32

How do you calculate total spoilage

Answer 32

Total spoilage = (Units in Beginning inventory + Units Started) - (Good units completed and transferred out + Units in ending inventory)

Question 33

How do you calculate Abnormal Spoilage

Answer 33

Abnormal Spoilage = Total Spoilage -Normal Spoilage

Question 34

What is the journal entry for accounting for normal spoilage attributable to a specific job

Answer 34

Materials Control

WIP Control

Question 35

What is the journal entry for accounting for normal spoilage not attributable to a specific job

Answer 35

Materials Control
Manufacturing Overhead Control
WIP Control

Question 36

What is the journal entry for abnormal spoilage

Answer 36

Materials Control
Loss from Abnormal Spoilage
WIP Control