You need to do my Midterm Exam!!!!! very very important to get a good grade!:) 

You must complete all work in an original Excel file. DON'T FORGET ! 

exam you can see below. 

 

ACCT 2312 Summer 2016 Midterm Exam Part 2 (50% of exam total)

 

Instructions:  Complete this portion of the exam in an Excel file.  Make sure to use the functionality of Excel in order to show work and receive full credit.  (Word documents will not be accepted for grading.)

 

Clearly label all problems and questions so that answers are easy to identify for grading.

 

Problem 1:   Scottsdale Ltd.  has the following cost information available for various months of production:

 

                                                May                 June                 July

Unit Sales                                20,000             40,000             50,000

 

Sales Revenues                       $640,000         $1,280,000      $1,600,000

Expenses                                 (800,000)         (900,000)         (950,000)

Profit (Loss)                            ($160,000)       $380,000         $650,000

 

(Note:  Round to two decimal places if necessary)

           

a.       Determine the variable cost per unit

 

 

 

 

b.      Determine the fixed cost

 

 

 

 

c.       Estimate the total cost for 30,000 units of production

 

 

 

 

d.      Compute the break-even point in dollars.

 

 

 

 

e.       Scottsdale Ltd.  had sales last year of $975,000.  Determine last year’s margin of safety in sales dollars.

 

 

 

 

f.       Perform a sensitivity analysis to determine how an increase in sales of $30,000 would impact to Net Income?

 

 

 

 

 

 

 

Problem 2:

Assume a company has equipment with a book value of $50,000.  The Company can sell the equipment through a broker for $90,000 less a 4% commission fee.  Alternatively, the Company could lease the equipment to another party for 3 years at a price of $130,000.  At the end of the three years, the equipment is expected to have no residual value (book value of $0).  If the equipment is leased, the Company will incur estimated expenses of $12,000 over the three years for maintenance, insurance and taxes.

 

Calculate the differential net income and write a statement explaining why the company should lease or sell.

 

 

 

 

Problem 3: 

 

Use T-accounts to track the flow of costs through a job-order costing system using the company data provided.

 

Note:  This company applies overhead at a rate of 80% of Direct Labor Costs (Applied OH = 0.80 x Direct Labor Dollars)

 

Given the following data:

Purchases:	Â	Account Balances	Beginning	Ending
     Raw Materials	78,000	Raw Materials	60,000	50,000
     Manufacturing Supplies	9,000	Manufacturing Supplies	6,000	5,000
     Office Supplies	2,000	Office Supplies	4,000	1,000
Sales	800,000	Work in Process	65,000	47,000
Administrative Salaries	16,000	Finished Goods	36,000	35,000
Direct labor	95,000	Â	Â	Â
Production employees fringe benefits	8,000	Â	Â	Â
Sales Commissions	80,000	Â	Â	Â
Production supervisors salaries	17,000	Â	Â	Â
Plant depreciation	11,000	Â	Â	Â
Office depreciation	12,000	Â	Â	Â
Plant maintenance	9,000	Â	Â	Â
Plant Utilities	18,000	Â	Â	Â
Office utilities	7,000	Â	Â	Â
Office Maintenance	5,000	Â	Â	Â
Production Equipment Rent	6,000	Â	Â	Â
Office Equipment Rent	4,000	Â	Â	Â
Â	Â	Â	Â	Â

 

A.    Calculate the following:

 

·         Cost of Goods Manufactured ___________________________________

·         Cost of Goods Sold ___________________________________________

·         Applied Overhead ____________________________________________

·         Amount of Under or Over Applied Overhead  ______________________

 

B.     Prepare an Income Statement in Excel using the template given below. Make sure to show all your work including the flow of costs through specific inventory accounts to arrive at Cost of Goods Sold.

 

Sales	Â
Less: Cost of Goods Sold (COGS)	Â
Gross Profit	Â
Less:  Selling, Administrative and General Expenses	Â
1.	Â
2.	Â
3.	Â
4.	Â
5.	Â
6.	Â
7.	Â
Total SGA Expenses (subtotal)	Â
Net Income	Â