Accounting 107 Review Exam 1

This exam consists of 51 equally weighted questions. Chapter Conceptual Problem or Computation 1 17 3 2 7 5 3 8 4 4 5 2 Total 37 14 Total 20 12 12 7 51

Review all homework and quizzes. There are no preformatted worksheets on the exams.

Chapter 1
y y y y y y y y y y y Conceptual objectives: C1. Explain the purpose and nature of managerial accounting. C2. Describe the lean business model. C3. Describe fraud and the role of ethics in managerial accounting. C4. Describe accounting concepts (including terms) useful in classifying costs. C5. Define product and period costs and explain how they impact financial statements. C6 Explain how balance sheets and income statements for manufacturing and merchandising companies differ. C7. Explain manufacturing activities and the flow of manufacturing costs. Procedural objectives: P1. Compute cost of goods sold for a manufacturer. P2. Prepare a manufacturing statement and explain its purpose and links to financial statements.

Chapter 2
y y y y y y y y y Conceptual objectives: C1. Explain the cost accounting system. C2. Describe important features of job order production. C3. Explain job cost sheets and how they are used in job order cost accounting. Procedural objectives: P1. Describe and record the flow of materials costs in job order cost accounting. P2. Describe and record the flow of labor costs in job order cost accounting. P3. Describe and record the flow of overhead costs in job order cost accounting. P4. Determine adjustments for overapplied and underapplied factory overhead.

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Chapter 3
y y y y y y y y y y y y y y Conceptual objectives: C1. Explain process operations and the way they differ from job order operations. C2. Define equivalent units and explain their use in process cost accounting. C3. Explain the four steps in accounting for production activity in a period. C4. Define a process cost summary and describe its purposes. C5. Explain and illustrate the four steps in accounting for production activity using FIFO. Analytical objectives: A1. Compare process cost accounting and job order cost accounting. Procedural objectives: P1. Record the flow of direct materials costs in process cost accounting. P2. Record the flow of direct labor costs in process cost accounting. P3. Record the flow of factory overhead costs in process cost accounting. P4. Compute equivalent units produced in a period. P5. Prepare a process cost summary.

Chapter 4
y y y y y y y y y y y y y Conceptual objectives: C1. Distinguish among the plant wide overhead rate method, the departmental overhead rate method, and activity-based costing method. C2. Explain cost flows for the plant wide overhead rate method. C3. Explain cost flows for the departmental overhead rate method. C4. Explain cost flows for activity-based costing. Analytical objectives: A1. Identify and assess advantages and disadvantages of the plant wide overhead rate method. A2. Identify and assess advantages and disadvantages of the departmental overhead rate method. A3. Identify and assess advantages and disadvantages of activity-based costing. Procedural objectives: P1. Allocate overhead costs to products using the plant wide overhead rate method. P2. Allocate overhead costs to products using the departmental overhead rate method. P3. Allocate overhead costs to products using activity-based costing.

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