ACG 2071 Midterm Assessment Answer the questions to the best of your ability.

ACG 2071 Midterm AssessmentAnswer the questions to the best of your ability. Include the detail of your calculationswhere calculations are required. Add additional pages as necessary.1. For each of the following, indicate whether the statement relates to managerial accounting(MA) or financial accounting (FA) (5 Points):StatementHow reports will affect employee behavior is aconcern.Summary reports are prepared primarily on thecompany as a whole, usually on a quarterly orannual basis.Relevant information and focus on the future.Primary users include investors, creditors, andgovernment authorities.There is no requirement to follow GAAP.Applies toMA or FA2. Classify each cost of a furniture manufacturer as either product cost (PR) or period cost (PE)(7 Points):CostVice president of marketing’ssalaryDelivery expenseWood used to make tablesDepreciation on office equipmentProduction supervisor’s salaryFactory insuranceCorporate office rentPR or PE3. Dreams Manufacturing, Inc. provided the following information for the year:Purchases—Raw MaterialsPlant Utilities and InsuranceIndirect MaterialsIndirect LaborEnding Balance—Work-in-Process InventoryEnding Balance—Raw Materials InventoryDirect LaborDepreciation on Factory Plant and EquipmentBeginning Balance—Work-in-Process InventoryBeginning Balance—Raw Materials Inventory$270,000202,50035,25014,25042,00045,000352,50018,00018,00063,000Required: Prepare a statement of the cost of goods manufactured using the following format (25Points):Schedule of Cost of Goods ManufacturedBeginning Work-in-Process InventoryDirect Materials Used:Beginning Raw Materials InventoryPurchases of Raw MaterialsRaw Materials Available for UseEnding Raw Materials InventoryDirect Materials UsedDirect LaborManufacturing Overhead:Indirect MaterialsIndirect LaborDepreciation—Plant and Equip.Plant Utilities and InsuranceTotal Manufacturing OverheadTotal Manufacturing Costs IncurredDuring the YearTotal Manufacturing Costs to AccountForEnding Work-in-Process InventoryCost of Goods Manufactured4. At the beginning of the year, Rupert Manufacturing had the following account balances:Work-in-Process Inventory2,000Finished Goods Inventory8,000Manufacturing Overhead0Cost of Goods Sold0Sales Revenue0The following additional details are provided for the year:Direct materials placed in productionDirect labor incurredManufacturing overhead incurredManufacturing overhead allocated to productionCost of jobs completedJobs sold for total revenue ofCost of jobs sold$ 80,000190,000300,000295,000500,000750,000440,000The remaining balance of Manufacturing Overhead was adjusted to zero. Calculate the endingbalances in Work-in-Process Inventory, Finished Goods Inventory, Manufacturing Overhead(unadjusted), and Cost of Goods Sold (after adjustment) (20 Points).5. Journalize the following transactions for Malone Custom Furniture Manufacturing (12Points):a) Incurred and paid advertising expenses, $3,500.b) Incurred manufacturing wages of $30,000, 60% of which was direct labor and 40% ofwhich was indirect labor.c) Purchased raw materials on account, $27,000.d) Used in production: direct materials, $12,000; indirect materials,$5,500e) Recorded manufacturing overhead: depreciation on plant, $14,000; plant insurance(previously paid), $1,800; plant property tax, $4,500 (credit Property Tax Payable).f) Allocated manufacturing overhead to jobs, 150% of direct labor costs.g) Completed production on jobs with costs of $55,000.h) Sold inventory on account, $64,000; cost of goods sold, $35,000.i) Adjusted for overallocated or underallocated overhead.6. Florian Plant Services completed a special landscaping job for Pierre Designs Company.Florian uses ABC and has the following predetermined overhead allocation rates:ActivityDesigningPlantingPredetermined OverheadAllocation BaseAllocation RateNumber of designs $275 per designNumber of plants$15 per plantThe Pierre Designs project required $1,200 in landscape materials, $700 in direct labor, onedesign, and 35 plants.Requirements (15 Points):1. What is the total cost of the work done for Pierre Designs?2. If Pierre Designs paid $3,900 for the job, what is the operating income or loss?3. If Florian desires an operating income of 50% of cost, how much should the company chargefor the Pierre Designs project?7. Provide answers to the following just-in-time costing questions (3 Points):Just-in-Time Costing QuestionWhen are the costs of productsrecorded?Which inventory accounts are used?Which accounts are used to recordmanufacturing costs?Just-in-Time Costing Answer8. Caprice, Inc. has adopted a JIT management system and has the following transactions inDecember:Dec 3 Purchased raw materials on account, $80,000Dec 8 Incurred labor and overhead costs, $105,000Dec 15 Completed 750 units with standard costs of $106 for direct materials and $165 forconversion costsDec 23 Sold 650 units for $395 eachRecord the journal entries for Caprice, Inc. for December (5 Points).9. Distinguish the following costs as prevention, appraisal, internal failure, or external failure (7Points):a)b)c)d)e)f)g)Rework substandard productsTechnical support provided to suppliersWarranty repairs and replacementsInspection of test equipmentLiability arising from defective productsField testing and appraisal at customer siteDisposal of defective products10. Identify each cost below as variable (V), fixed (F), or mixed (M), relative to units sold (6Points):Units Produced and SoldTotal electric costSupervisor’s monthly salaryAssembly line workers’ per hour wagerateTotal materials costDepreciation on factory equipmentTotal delivery costs100$1,500$4,500500$1,650$4,5001,000$1,700$4,500$30$800$5,000$1,400$30$4,000$5,000$1,800$30$8,000$5,000$2,25011. Andres Napkin Company sells a product for $80 per unit. Variable costs are $25 per unit, andfixed costs are $4,000 per month. Andres sold 2,000 units in October. Prepare an incomestatement for October using the contribution margin format (10 Points).12. Fun Time Amusement Park provides a variety of attractions. Fun Time sells tickets at $50per person as a one-day entrance fee. Variable costs are $28 per person, and fixed costs are$178,800 per month. Assume that Fun Time reduces fixed costs from $178,800 per month to$166,500 per month. Compute the new breakeven point in tickets and in sales dollars (10Points).