ACC/349

COST ACCOUNTING

The Latest Version A+ Study Guide

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ACC 349 Entire Course Link

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ACC 349 Week 1 Connect Assignment

Access Connect.

Complete the Week 1 Problems

1.

Which of the following are forms of detective internal control?

Relating data sets to one another to identify and resolve discrepancies.

Comparing actual performance to various benchmarks to identify unexpected results.

Maintaining written and/or electronic evidence to support transactions.

Putting passwords on a computer to restrict access.

2.

3.

4.

5.

6.

Managerial Accounting helps managers perform

Planning

Controlling

Decision-making

All of the above

7.

Financial accounting focuses on decisions affecting the future.

True

False

8.

The IMA Statement of Ethical Professional Practice standards include all of the following EXCEPT:

Honesty

Credibility

Confidence

Competence

ACC 349 Week 2 Connect Assignment

Access Connect.

Complete the Week 2 Problems.

1.

2.

3.

Award: 6 out of 6.00 points

4.

ACC 349 Week 3 Team Assignment, Part 1

Read the following scenario below:

Leighton Beridon owns “Jeemp Farms”, located near Weimar, TX. The farm produces pecan trees and sod. He has so many orders from the Houston metropolitan area that he is able to sell all his inventory each year, but he is not netting as much as he has in past years. His daughter, Liesl Beridon, came home from college over Thanksgiving and mentioned ABC costing, which she learned about in her cost accounting class. Mr. Beridon does not really know what ABC costing is and is skeptical as to whether it would be right for his business. He has hired your company to educate him about ABC and whether or not he should use an ABC system. Over the next few weeks, you will work towards helping Mr. Beridon decide what is the best route for his company to take.

Shortly after you get started, Mr. Beridon sends you an email stating that he feels he needs to discontinue the sod portion of his business and focus on his tree sector, as he can charge more per tree than he can charge for a foot of sod. He sends you an email stating, “I can charge so much more for a tree than a foot of grass. Therefore, I am planning on discontinuing the sod portion of the business immediately as I make so much more on the trees! I am going to plant all my sod acres with trees”.

Write a 700- to 1,050-word paper plan for your boss explaining how you will analyze Jeemp Farms.

Include the following:

• Prepare an argument convincing him to hold off on his decision and see the results of your analysis first. As you have not had time to do any analysis yet, you need to convince Mr. Beridon to wait on whether to discontinue his sod business.
• Project potential benefits Mr. Beridon could gain from using an ABC system.
• Explain how ABC creates these benefits.

Your team is planning on conducting an analysis of whether ABC would be beneficial to Mr. Beridon. Create a process for conducting this analysis.

Include the following:

1. How could you apply the data in the company’s general ledger?
2. Determine questions to ask Mr. Beridon.
3. Determine other information to gather.
4. Explain how this additional information could help you in your analysis?
5. Explain how you would decide on a final recommendation.

Format your assignment to APA standards.

Click the Assignment Files tab to submit as a Microsoft® Word document.

ACC 349 Week 3 Connect Assignment

Access Connect.

Complete the Week 3 Problems.

1.

Award: 20 out of 20.00 points

$350,000

$614,000

$0

$78,900

2.

Award: 40 out of 40.00 points

Garrison 15e Recheck 2015-01-16

3.

Award: 20 out of 20.00 points

4.

Award: 10 out of 10.00 points

In activity-based costing, nonmanufacturing costs are not assigned to products.

True

False

5.

Award: 10 out of 10.00 points

Which of the following would probably be the most accurate measure of activity to use for allocating the costs associated with a factory’s purchasing department?

Machine-hours

Direct labor-hours

Number of orders processed

Cost of materials purchased

ACC 349 Week 4 Team Assignment, Part 2

Resource: Jeemp Template.

Mr. Beridon received your requests for information and returned data which you have compiled in an Microsoft® Excel® spreadsheet (see document template). He also said, “We grow sod and trees at Jeemp Farms. We sell the sod mainly to home builders in the area, although we sell to some individuals who are purchasing square footages to re-sod their yard. Many home builders will purchase to sod an entire subdivision. They then may come back to us to purchase trees for the yards. It really is a package deal. For builders like that, we are a one-stop-shop.  In most cases, however, we sell the trees to orchards and some individuals. The purchaser is responsible for all shipping costs related to their product.”

“Our production process is different for each product. For sod, we plant the seed, irrigate, cut, and roll the sod and then transport it. For the trees, we plant the root stock, graft the tree, water until a particular maturity and then dig it up and sell it. We inspect the plants as needed to make sure we are producing a quality product that is disease-free.”

“We have delayed purchasing some machinery that reduces time for the planting of the trees because it is a large up-front cost and we don’t want to have a huge outlay of cash if our profits keep going down.”

“The grass does not require as much irrigation as the trees, as it is at a lower elevation than the tree acres and is closer to the creek; it gets a lot of the run off.”

“Historically, we have always been able to sell everything we produce. Hopefully, that will continue since Houston is expanding rapidly.”

Compute the product costs for the sod and trees under traditional and ABC costing using the Microsoft® Excel® spreadsheet.

Write a 700- to 1,050-word paper analyzing Jeemp Farms and what data and information you will consider.

Include the following:

• Describe any factors that could skew your results. In other words, explain if there is one method of costing that could make a product look more favorable than it really is.
• Justify whether Mr. Beridon should cut the sod portion of his company.
• Justify whether Mr. Beridon should cut the tree portion of his company instead.
• Describe other methods of analysis you could use to help you come to a decision.
• Describe any other qualitative or quantitative factors or changes to Mr. Beridon’s business that might be relevant to Jeemp Farms as they make the decision as to whether to use ABC and whether to cut sectors.
• Determine any additional information you would need to have before making a recommendation.

Format your assignment to APA standards.

Click the Assignment Files tab to submit your assignment as a Microsoft® Word document.

ACC 349 Week 4 Connect Assignment

Access Connect.

Complete the Week 4 Problems.

1.

Award: 10 out of 10.00 points

2.

Award: 10 out of 10.00 points

3.

Award: 10 out of 10.00 points

4.

Award: 10 out of 10.00 points

5.

In business, a budget is a method for putting a limit on spending.

True

False

6.

Fixed costs should be included in a flexible budget even though they do not change when the level of activity changes.

True

False

7.

A balanced scorecard should not contain any performance measures concerning customer satisfaction since the extent to which customers are satisfied is beyond the control of any manager in the company.

True

False

ACC 349 Week 5 Team Assignment, Part 3

You have completed the analysis of ABC and determined whether it is a good option for Jeemp Farms.

Create a 5- to 10-slide presentation with speaker notes for Jeemp Farms management that addresses the following:

• Explain ABC costing and how it is different than traditional costing.
• Explain the advantages/disadvantages of using ABC costing.
• Define the terminology that is used in an ABC costing system.
• Explain whether ABC is the preferential system for Jeemp Farms and why.
• Recommend whether the company should discontinue the sod portion of the business and what outside factors might need to be considered prior to doing so.
• List any non-financial factors that should be considered in decisions the company makes.
• Include at least three outside credible sources in APA formatting at the end of your presentation so the management will know how to access more information about ABC.

Format your assignment to APA standards.

Click the Assignment Files tab to submit your assignment.

ACC 349 Week 5 Signature Assignment: Ethics on the Job

About Your Signature Assignment

Signature/Benchmark Assignments are designed to align with specific program student learning outcome(s) in your program. Program Student Learning Outcomes are broad statements that describe what students should know and be able to do upon completion of their degree. Signature/Benchmark Assignments are graded with a grading guide or an automated rubric that allows the University to collect data that can be aggregated across a location or college/school and used for course/program improvements.

Format your assignment to APA standards.

Submit your assignment to the Assignment Files tab as a Microsoft® Word document.

Identify a specific job within a specific company that you might be interested in applying for after you graduate from the University of Phoenix.

Research the job and the field in general, as well as ethical issues managerial accountants have faced that would pertain to that field. Also, educate yourself on the basics of operations within the job and company you have selected.

Write a 700- to 1,050-word paper to include the following:

• Summarize the main duties of the job.
• Describe a specific ethical issue you might face in that position using 2 credible sources to support your description.
• Summarize the IMA’s standards of ethical practice and conflict resolution guide.
• Analyze how the IMA’s standards of ethical practice and conflict resolution guide applies to the ethical issue.
• Predict how you would handle the ethical issue.
• Hypothesize what would happen if no one in the company followed the IMA’s standards of ethical practice.
• Assess why it is important to follow the IMA’s standards of ethical practice.
• Design or name any methods of internal controls you think could prevent or detect the unethical behavior in the future.

Click the Assignment Files tab to submit your assignment as a Microsoft® Word document.

ACC 349 Week 5 Connect Assignment

Access Connect.

Complete the Week 5 Problems.

1.

Award: 10 out of 10.00 points

2.

Award: 10 out of 10.00 points

3.

Award: 10 out of 10.00 points

4.

Award: 10 out of 10.00 points

5.

Award: 10 out of 10.00 points

An unfavorable labor rate variance can occur if workers with high hourly wage rates are assigned to work on products with standards that assume workers have low hourly wage rates.

True

False

ACC 349 Wk 5 – Apply: Connect Assignment, Final Exam

The Gasson Company uses the weighted-average method in its process costing system. The company’s ending work in process inventory consists of 20,000 units, The ending work in process inventory is 100% complete with respect to materials and 70% complete with respect to labor and overhead. If the costs per equivalent unit for the period $3.20 for the materials and $2.00 for labor and overhead, whatis the balance of the ending work in process inventory account would be: (Do not round Cost per equivalent unit)

Multiple Choice

$92,000

$63,500

$83,500

$104,000

Lasseter Corporation has provided its contribution format income statement for August. The company produces and sells a single product.

Sales (5,600 units)     $     235,200

Variable expenses            112,000

________________________________________       ________________________________________

Contribution margin        123,200

Fixed expenses        47,200

________________________________________       ________________________________________

Net operating income $     76,000

________________________________________________________________________________       ________________________________________________________________________________

If the company sells 5,700 units, its total contribution margin should be closest to:

Multiple Choice

$77,357

$125,400

$127,400

$123,200

Activity rates from Quattrone Corporation’s activity-based costing system are listed below. The company uses the activity rates to assign overhead costs to products:

Activity Cost Pools    Activity Rate

Processing customer orders       $95.31   per customer order

Assembling products  $2.87      per assembly hour

Setting up batches      $54.67   per batch

Last year, Product F76D involved 5 customer orders, 475 assembly hours, and 24 batches. How much overhead cost would be assigned to Product F76D using the activity-based costing system?

Multiple Choice

$1,298.57

$1,312.08

$3,151.88

$68,060.72

The following costs were incurred in September:

Direct materials  $39,400

Direct labor $34,000

Manufacturing overhead    $21,600

Selling expenses $19,700

Administrative expenses    $38,600

Conversion costs during the month totaled:

Multiple Choice

$61,000

$73,400

$55,600

$153,300

Wyly Inc. produces and sells a single product. The selling price of the product is $180.00 per unit and its variable cost is $57.60 per unit. The fixed expense is $392,088 per month.

The break-even in monthly dollar sales is closest to: (Round your intermediate calculations to 2 decimal places.)

Multiple Choice

$392,088

$1,225,275

$833,187

$576,600

Erkkila Inc. reports that at an activity level of 6,600 machine-hours in a month, its total variable inspection cost is $423,980 and its total fixed inspection cost is $162,426.

What would be the average fixed inspection cost per unit at an activity level of 6,900 machine-hours in a month? Assume that this level of activity is within the relevant range.

Multiple Choice

$39.63

$24.61

$88.85

$23.54

Bossie Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity based costing system:

Costs:

Wages and salaries     $268,000

Depreciation       205,000

Utilities      159,000

Total    $632,000

Distribution of resource consumption:

Activity Cost Pools

Assembly       Setting up       Other      Total

Wages and salaries     60%    25%    15%    100%

Depreciation       30%     25%    45%    100%

Utilities      20%    45%    35%    100%

How much cost, in total, would be allocated in the first-stage allocation to the Assembly activity cost pool?

Multiple Choice

$379,200

$254,100

$241,433

$126,400

Aide Industries is a division of a major corporation. Data concerning the most recent year appears below:

Sales   $17,910,000

Net operating income $985,050

Average operating assets    $4,850,000

The division’s return on investment (ROI) is closest to: (Round your answer to 2 decimal places.)

Multiple Choice

2.50%

20.31%

5.50%

16.46%

Nikkel Corporation, a merchandising company, reported the following results for July:

Sales   $418,000

Cost of goods sold (all variable)       $175,500

Total variable selling expense    $23,700

Total fixed selling expense $21,800

Total variable administrative expense       $16,200

Total fixed administrative expense    $34,300

The contribution margin for July is:

Multiple Choice

$202,600

$361,900

$146,500

$242,500

Blue Corporation’s standards call for 6,000 direct labor-hours to produce 1,500 units of product. During May 1,350 units were produced and the company worked 1,400 direct labor-hours. The standard hours allowed for May production would be:

Multiple Choice

4,650 hours

1,400 hours

6,000 hours

5,400 hours

The following cost data pertain to the operations of Swestka Department Stores, Inc., for the month of July.

Corporate headquarters building lease      $82,300

Cosmetics Department sales commissions–Northridge Store   $5,930

Corporate legal office salaries   $64,400

Store manager’s salary-Northridge Store   $10,000

Heating-Northridge Store  $20,600

Cosmetics Department cost of sales–Northridge Store    $37,200

Central warehouse lease cost     $11,000

Store security-Northridge Store $16,500

Cosmetics Department manager’s salary–Northridge Store     $4,190

The Northridge Store is just one of many stores owned and operated by the company. The Cosmetics Department is one of many departments at the Northridge Store. The central warehouse serves all of the company’s stores.

What is the total amount of the costs listed above that are direct costs of the Cosmetics Department?

Multiple Choice

$47,320

$43,130

$99,610

$37,200

Job 593 was recently completed. The following data have been recorded on its job cost sheet:

Direct materials  $2,429

Direct labor-hours      74          labor-hours

Direct labor wage rate       $    17        per labor-hour

Machine-hours    135        machine-hours

The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $18 per machine-hour. The total cost that would be recorded on the job cost sheet for Job 593 would be:

Multiple Choice

$6,957

$3,441

$3,687

$6,117

Cadavieco Detailing’s cost formula for its materials and supplies is $1,850 per month plus $4 per vehicle. For the month of November, the company planned for activity of 80 vehicles, but the actual level of activity was 45 vehicles. The actual materials and supplies for the month was $2,000.

The materials and supplies in the planning budget for November would be closest to:

Multiple Choice

$2,000

$2,170

$3,761

$2,030

Part O43 is used in one of Scheetz Corporation’s products. The company’s Accounting Department reports the following costs of producing the 17,000 units of the part that are needed every year.

Per Unit

Direct materials  $4.20

Direct labor $4.90

Variable overhead      $7.90

Supervisor’s salary     $8.60

Depreciation of special equipment    $9.20

Allocated general overhead      $6.20

________________________________________

An outside supplier has offered to make the part and sell it to the company for $33.00 each. If this offer is accepted, the supervisor’s salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside supplier’s offer were accepted, only $23,000 of these allocated general overhead costs would be avoided.

Required:

1. Prepare a report that shows the effect on the company’s total net operating income of buying part O43 from the supplier rather than continuing to make it inside the company. (Input the amount as a positive value. Omit the “$” sign in your response.)

1. Which alternative should the company choose?

Buy

Make

The following standards for variable manufacturing overhead have been established for a company that makes only one product:

Standard hours per unit of output     9.0  hours

Standard variable overhead rate $15.40     per hour

The following data pertain to operations for the last month:

Actual hours       2,975      hours

Actual total variable manufacturing overhead cost   $46,595

Actual output     250         units

What is the variable overhead efficiency variance for the month?

Multiple Choice

$11,165 U

$11,945 U

$34,650 F

$780 F

Olds Inc., which produces a single product, has provided the following data for its most recent month of operations:

Number of units produced 9,700

Variable costs per unit:

Direct materials  $121

Direct labor $105

Variable manufacturing overhead      $6

Variable selling and administrative expense      $13

Fixed costs:

Fixed manufacturing overhead  $349,200

Fixed selling and administrative expense  $727,500

There were no beginning or ending inventories. The absorption costing unit product cost was:

Multiple Choice

$226 per unit

$356 per unit

$232 per unit

$268 per unit

Zurasky Corporation is considering two alternatives: A and B. Costs associated with the alternatives are listed below:

Alternative A  Alternative B

Materials costs    $24,000     $56,000

Processing costs  $30,000     $30,000

Equipment rental       $10,200     $28,100

Occupancy costs $19,100     $26,800

What is the differential cost of Alternative B over Alternative A, including all of the relevant costs?

Multiple Choice

$83,300

$89,600

$140,900

$57,600

A soft drink bottler incurred the following factory utility cost: $3,611 for 700 cases bottled and $3,702 for 1,000 cases bottled. Factory utility cost is a mixed cost containing both fixed and variable components. The variable factory utility cost per case bottled is closest to:

Multiple Choice

$5.16

$0.30

$3.70

$3.61

The Assembly Department started the month with 15,500 units in its beginning work in process inventory. An additional 289,500 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 21,250 units in the ending work in process inventory of the Assembly Department.

How many units were transferred to the next processing department during the month?

Multiple Choice

295,250

283,750

326,250

305,000

The cash budget is typically prepared before the direct materials budget.