Acc Final Exam

Final Exam Volume 2: Chapters 13-26 Name

Accounting Principles, 9e Instructor

Weygandt, Kieso, & Kimmel Section # Date

|Part | I | II | III | IV | V | Total |

|Points | 80 | 27 | 18 | 14 | 21 | 160 |

|Score | | | | | | |

PART I — MULTIPLE CHOICE (80 points)

Instructions: Designate the best answer for each of the following questions.

____ 1. A responsibility center that incurs costs (and expenses) and generates revenues is classified as a(n)

a. cost center.

b. revenue center.

c. profit center.

d. investment center.

____ 2. The most useful measure for evaluating a manager's performance in controlling revenues and costs in a profit center is

a. contribution margin.

b. contribution net income.

c. contribution gross profit.

d. controllable margin.

____ 3. Hinton Corporation desires to earn target net income of $90,000. If the selling price per unit is $30, unit variable cost is $24, and total fixed costs are $360,000, the number of units that the company must sell to earn its target net income is

a. 30,000.

b. 75,000.

c. 45,000.

d. 60,000.

____ 4. Lynch Corporation uses a process cost accounting system. Given the following data, compute the number of units transferred out during the current period.

Beginning Work in Process 20,000 units (1/2 complete)

Ending Work in Process 25,000 units (1/3 complete)

Started into Production 150,000 units

a. 125,000

b. 141,667

c. 145,000

d. 150,000

____ 5. Vinson Company applies overhead on the basis of machine hours. Given the following data, compute overhead applied and the under- or...