ACCT 2302

Specific topics to review for Exam IV

M/C question formats will include, but are not limited to, the following:

Theory

Definitions

Logical thinking

Simple problems

Topics covered may include, but are not limited to, the following:

• Review basic concepts and how to apply them. Also briefly review definitions.

• Ch 11 – Product Costing (About 15 M/C theory questions & problems):

• General theories & terminology
• Recognize components of product costs, and when to expense them
• Sequence of product cost flows
• Recognize components of Manufacturing Overhead
• Calculations such as ending inventory, amount transferred in or out, CoGS, pre-determined OH rate, over or under-applied OH, etc. (Read given information very carefully)
• Recognize what debits & credits to various accounts represent (i.e., inventories, Mfg. OH, CoGS, etc.) Know "Normal" balances!
• Problem: Be able to prepare Variable Cost basis Income Statement from (format provided) Absorption Cost basis Income Statement (given) - 7 points (NOTE: This will be converted to M/C format.)

• Ch. 12 – Job Order & Process Costing (About 15 M/C theory questions & problems):

• General theories & terminology
• Proper documents used in each costing system
• Know differences between Job Order and Process Costing systems - recognize which should be used
• What is a hybrid cost system
• Know journal entries (as posted to T-accounts in class) for various transactions - recognize debit or credit to accounts
• Simple calculations under Job Order & Process Costing , such as total costs per job, OH allocation, total WIP costs, number of equivalent units, cost per equivalent unit, etc. (Read given information very carefully)
• Problem: Prepare Job Cost Sheet and Cost of Production Report (formats provided) - be able to calculate total costs, equivalent units, cost per EU, cost allocation, etc. - 1 @ 10 points; 1 @ 11 points (NOTE: This will be converted to M/C format.)
• Problem: Prepare Schedule of Cost of Goods Manufactured and Sold (format provided - fill in blanks) - 5 points (NOTE: This will be converted to M/C format.)

Ch. 13 – Financial Statement Analysis (About 15 M/C theory questions & problems):

• Know how to apply the various formulas and where to obtain the numbers to plug into them. NOTE: You will be provided with a formula sheet for the exam.
• Understand the difference between Vertical and Horizontal analysis - how to calculate the percentages.
• Know whether a larger or smaller ratio is better - for example, higher is better with the Current Ratio.

NOTE: The problems, which you will work out manually and select M/C solutions, are similar to exercises we worked in class from chapters 11, 12 & 13. These problems will require you to apply concepts learned throughout the semester, as well as logical thinking processes.

The M/C answers on this exam will be recorded on an 882-ES scantron, as always.

Please be sure to bring your scantron, calculator (you will need it), number 2 pencils, and a good eraser with you for the exam.

Good luck! I’ve enjoyed having you in my class this semester.

K E Moffatt