Take Home Mid-Term 1

Part 1
Part 1 of the mid-term will be available on Blackboard at 6:00pm on Monday. The online test is worth 60 points and should consist of 30 questions. The questions will be a mix of concept questions and computational questions. You will need a calculator for the exam. Once you have completed a question, you may not go back to that question. You will have 90 minutes to complete the exam. A timer may not be displayed so you will have to keep track of the time yourself. Therefore, use your time wisely.

Part 2
Take home exam. This is an exam and you must do your own work. It is worth 40 points. This part is due Monday at 5:00pm. For the problems you must show your work. You must submit your answers using a word. Make sure your label your answers. E-mail the answers to me.

1. (6 points) The selected amounts that follow were taken from Kentucky Corporation's accounting records:

Required:
Compute the following:
A. Manufacturing overhead.

Total manufacturing costs ($104,000) - raw material ($27,000) and direct labor ($35,000) = $42,000

B. Work-in-process inventory, 12/31.
Total manufacturing costs ($104,000) + Work-in-process, 1/1 ($19,000) – COGM ($100,000)= $23,000

C. Finished-goods inventory, 1/1.

Costs of good available for sale ($175,000) – COGM ($100,000) = $75,000

D. Cost of goods sold.

Cost of goods available for sale ($175,000) – finished-goods inventory, 12/31 ($60,000) = $115,000

E. Gross margin.

Sales revenue ($300,000) – COGS ($115,000) = $185,000

F. Net income.

Gross margin ($185,000) – selling and administrative expenses ($125,000) – income tax expense ($18,000) = $42,000 2. (7 points) Brickman Corporation, which began operations on January 1 of the current year, reported the following information:

Brickman applies manufacturing overhead to jobs on