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Study Resources (Accounting)

Problem F - III — Materials Purchases Budget (12 points) The budget components for Carrion Secure Storage Company for the quarter ended June 30 appear below. Carrion sells secure storage boxes for $24 each. Budgeted sales and production for the next three months are:     Sales   Production April 40,000 units52,000 units May 100,000 units92,000 units June.
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  Problem H - III — Variance Analysis (15 points) Ola Means was reviewing her business activities at the end of 2012 and decided to prepare a Owner’s Equity Statement. At the beginning of the year her assets were $270,000, liabilities were $150,000, and owner’s capital was $120,000. The net income for.
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  Problem H - I — Multiple Choice (20 points) Circle the one best answer.               1.Which one of the following payroll taxes does not result in a payroll tax expense for the employer? a.Federal income tax. b.FICA tax. c.Federal unemployment tax. d.State unemployment tax.               2.Which of the following would not be classified as a short-term.
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  Problem G - I — Multiple Choice (22 points) Circle the one best answer.               1.A standard which represents an efficient level of performance that is attainable under expected operating conditions is called a(n) a.ideal standard. b.loose standard. c.tight standard. d.normal standard.               2.Tom Thumb Pie Company developed the following per unit standards for its product: 4.
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AT10- 1 Achievement Test 10 PART II — BUDGETARY PLANNING (32 points) This problem consists of four independent mini-problems. Omit headings other than those already given. A.Washer Manufacturing produces and sells containers designed to hold liquid beverages. The sales budget for 2012 is as follows: 1st quarter  — 130,000 units3rd quarter — 180,000 units 2nd quarter.
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AT8- 1 Achievement Test 8 PART III — PROCESS COSTING (25 points) Instructions: Using the following data, complete the requirements given below. When you are given amounts to assume as the answers to previous requirements, be careful to use such assumed amounts rather than your answers (in order to minimize carry-through errors). The Finishing.
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BRIEF Exercises Be. 46 Presented here are five economic events. For each item, indicate whether the event increased (+), decreased (-), or had no effect (NE) on assets, liabilities, and owners’ equity.     Owner’s Assets=Liabilities+      Equity                 1.Owner invested cash in the business.____                                                                      2.Purchased supplies on account.______                                                        3.Paid.
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AT11- 1 Achievement Test 11 PART II — TRUE/FALSE (20 points) Instructions: Designate whether each of the following statements is true or false by circling the T or F. TF              1.If actual costs are less than standard costs, the variance is favorable. TF              2.A materials quantity variance is calculated as the difference between the standard.
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AT9- 1 Achievement Test 9 PART V — COST-VOLUME-PROFIT (24 points) Bender Company manufactures a product that sells for $50 per unit. Bender incurs a variable cost per unit of $30 and $3,000,000 in total fixed costs to produce this product. It is currently selling 200,000 units. Instructions: Complete each of the following requirements,.
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MULTIPLE CHOICE QUESTIONS               19.The basic accounting equation for a sole proprietorship is: a.Assets = Liabilities plus Stockholder’s equity. b.Assets = Liabilities plus Common Stock. c.Assets = Liabilities plus Owner’s Equity. d.Assets = Liabilities plus Retained Earnings.               20.As compared to a corporation, the accounting for a sole proprietorship is similar except for: a.equity transactions. b.the recognition of.
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Problem F - IV — Budgeting (18 points) Marlene of Mars has budgeted the following unit sales for the first quarter of 2012:   Units January72,000 February108,000 March90,000 It takes two pounds of direct materials, which cost $6 per pound, to manufacture one Orbital Orb. It is Marlene of Mar’s policy to have a finished goods.
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AT11- 1 Achievement Test 11 PART IV — CAPITAL BUDGETING (20 points) Harley Company is considering a capital investment of $800,000 in new equipment. It is expected to have a useful life of 10 years with no salvage value. Depreciation is computed by the straight-line method. During the life of the investment, annual.
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AT9- 1 Achievement Test 9 PART II — TRUE/FALSE (10 points) Instructions: Designate whether each of the following statements is true or false by circling the T or F. TF              1.Contribution margin is the amount of revenue left over to cover selling and administrative costs after manufacturing costs have been deducted. TF              2.The margin of.
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  Problem E - II — Cost of Goods Manufactured and Sold (20 points) Selected account balances of Worthington Manufacturers Inc. appear below for 2012: Beginning of YearEnd of Year Finished Goods Inventory$50,000$  64,000 Work In Process Inventory60,00070,000 Raw Materials Inventory92,00052,000 Sales720,000 Direct Labor90,000 Factory Supervisory Salaries36,000 Income Tax Expense50,000 Factory Insurance24,000 Raw Material Purchases150,000 Administrative Expenses34,000 Sales Returns and Allowances30,000 Factory Depreciation44,000 Indirect Labor22,000 Selling Expenses70,000 Instructions Using.
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AT9- 1 Achievement Test 9 PART IV — HIGH-LOW METHOD (14 points) Edenton Company incurred the following high and low maintenance costs totals during 2012: $370,000 at 20,000 units of activity during March and $274,000 at 14,000 units during August. Instructions: Answer parts (a) through (c) below, presenting carefully labeled supporting calculations in all.
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  Problem G - VI —Flexible Overhead Budget (18 points) Aloe Medical Aids Company has 16,000 machine hours available to use to produce either Bandages or Braces. The cost accounting department developed the following unit information for each of the products: BandagesBraces Sales price$114$142 Direct materials3842 Direct labor3028 Variable manufacturing overhead1624 Fixed manufacturing overhead612 Machine hours required.61.2 Management desires to.
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  Problem E - IV — Equivalent Units and Process Costing (25 points) The Blending Department of Vanilo Manufacturers has the following production and manufacturing cost data for January. Production: Beginning inventory 16,000 units that are 100% complete as to materials and 40% complete as to conversion costs; units started into production 54,000;.
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AT7- 1 Achievement Test 7 PART II — CLASSIFICATION OF COSTS AND EXPENSES (20 points) Instructions: Classify the following manufacturing costs and expenses by using the following code letters:               A.              Direct materials cost               B.              Direct labor cost               C.              Manufacturing overhead cost               D.              Period cost Abel Manufacturing Company incurs the following costs and expenses in.
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              39.The closing entry process consists of closing: a.all asset and liability accounts. b.out the owner’s capital account. c.all permanent accounts. d.all temporary accounts.               40.A post-closing trial balance will show: a.only balance sheet accounts. b.zero balances for balance sheet accounts. c.zero balances for all accounts. d.only income statement accounts.               41.The purpose of the post-closing trial balance is to: a.prove.
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AT9- 1 Achievement Test 9 PART VI — OPERATING LEVERAGE (12 points) The following CVP income statements are available for Heedy Company and Gilbert Company. Heedy CompanyGilbert Company Sales revenue$1,050,000$1,050,000 Variable costs  525,000420,000 Contribution margin525,000630,000 Fixed costs     275,000380,000 Net income$   250,000$   250,000 Instructions (a)Compute the degree of operating leverage for each company. (b)Prepare a CVP income statement for each company, assuming.
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AT7- 1 Achievement Test 7 PART III—DETERMINE WORK IN PROCESS AND FINISHED GOODS BALANCES (22 points) Bryan Manufacturing begins operations on March 1. Information from job cost sheets shows the following: Manufacturing Costs Assigned (non-cumulative) Job  March   April   May A$23,000 B$10,400$9,300 C$  4,800              $5,800                 $  4,200 D$7,100  $12,000 E$  6,800 Job A was completed in March. Job B was completed in.
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AT7- 1 Achievement Test 7 Achievement Test 7: Chapters 14-15 PART I — MULTIPLE CHOICE (30 points) Instructions:  Designate the best answer for each of the following questions. ____              1.One cost which is part of both manufacturing overhead and total manufacturing costs is                             a.direct labor.                             b.direct materials.                             c.selling and administrative costs.                            .
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AT8- 1 Achievement Test 8 Achievement Test 8: Chapters 16-17 PART I — MULTIPLE CHOICE (30 points) Instructions:  Designate the best answer for each of the following questions. ____              1.Given the following data, compute equivalent units of production for conversion costs:                             Beginning Work in Process—8,000 units, 40% complete                             Units Completed and Transferred Out—60,000.
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AT7- 1 Achievement Test 7 PART IV — JOB ORDER COST ACCOUNTING ENTRIES (28 points) The ledger accounts of Larken Company are presented below, with an identification number for each. Instructions: Prepare appropriate job order cost system entries to record the data/events given below. Place the appropriate identification number(s) in the debit and credit.
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              11.In the closing process for a sole proprietor, the revenue and expense accounts are closed, in the same manner as for a corporation, to another temporary account, Income Summary.               12.Income Summary is closed with a debit to Income Summary and a credit to Owner’s Drawing account.               13.Closing entries result.
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AT8- 1 Achievement Test 8 PART II — TRUE/FALSE (10 points) Instructions: Designate whether each of the following statements is true or false by circling the T or F. TF              1.The flow of costs is essentially the same in a job order and a process cost system. TF              2.The method of assigning costs is essentially.
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Problem F - VI — Sales Mix, Break-Even Units and Dollars (10 points) Splash Drawers sells computer monitors and computer projectors. The business is divided into two divisions along product lines. Variable costing income statements for the current year are presented below: MonitorsProjectors  Total   Sales$1,400,000$600,000$2,000,000 Variable costs  840,000  420,000     1,260,000 Contribution margin$560,000$  180,000740,000 Fixed costs     518,000 Net income$  .
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Problem F - V — Contribution Margin (14 points) Carmine Sports Company makes two products, footballs and baseballs. Additional information follows: FootballsBaseballs Units  8,000  5,000 Sales$120,000$50,000 Variable costs72,00014,000 Fixed costs    18,000   18,000 Net income$30,000$  18000 Profit per unit$3.75$3.60 If Carmine Sports has unlimited demand for both products, which product should the company emphasize?     .
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  Problem G - V — Income Statement (17 points) Vesuvius Climbers Supply Company uses a standard cost accounting system. During April, 2012, Vesuvius reported the following manufacturing variances: Materials price variance$3,200F Materials quantity variance4,800U Labor price variance1,200U Labor quantity variance4,400U Overhead controllable1,000F Overhead volume6,000U In addition, 30,000 units of product were sold at $36 per unit. Each unit.
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AT11- 1 Achievement Test 11 PART III — (30 points) VARIANCE ANALYSIS Better Bats, Inc. manufactures aluminum baseball bats that it sells to university athletic departments. It has developed the following per unit standard costs for 2012 for each baseball bat: Direct MaterialsDirect LaborManufacturing Overhead Standard quantity2 pounds (Aluminum)½ hour½ hour Standard price$3.90$9.75$6.00 Unit standard cost$7.80$4.875$3.00 In 2012, the.
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Problem F - I — Multiple Choice (22 points) Circle the one best answer.               1.Beermen Company sells a single product with a contribution margin of $24 per unit, fixed costs of $148,800, and sales for the current year of $200,000. How much is Beermen’s break-even point? a.4,600 units. b.$51,200. c.6,200 units. d.2,133 units.               2.Poe Incorporated’s.
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AT10- 1 Achievement Test 10 Achievement Test 10: Chapters 20-21 PART I — MULTIPLE CHOICE (26 points) Instructions:  Designate the best answer for each of the following questions. ____              1.Walnut Company produced 96,000 units in 46,000 direct labor hours. Production for the period was estimated at 99,000 units and 49,500 direct labor hours. A flexible.
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H-1 Accounting for Partnerships COMPLETION STATEMENTS               52.An association of two or more person to carry on as co-owners of a business for profit is called a ______________.               53.A change in partners due to withdrawal or admission, which does not necessarily terminate the business is called a _____________.               54.A  _______________  _______________ is a.
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  Problem E - V — Activity-Based Costing (15 points) Ruston Company manufactures two products: vats and tanks. During June, 400 vats and 800 tanks were produced and overhead costs of $66,000 were incurred. The following information related to overhead costs was available:         Activity            Cost Driver     Total Cost Materials handlingNumber of requisitions$56,000 Machine.
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  Problem E - I — Multiple Choice (20 points) Circle the one best answer.               1.Cost of goods manufactured during a period is obtained by taking the total manufacturing costs incurred during the period and adding and subtracting the following inventories: AddingSubtracting a.Beginning finished goods inventoryEnding finished goods inventory b.Beginning work in process inventoryEnding finished.
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TRUE-FALSE STATEMENTS               1.The primary differences between accounting and reporting for a sole proprietorship and a corporation involves accounting for revenues and expenses.               2.In a sole proprietorship there is no need to separate owner’s investments from net income retained for dividends as a sole proprietorship does not declare dividends.               3.The ownership.
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AT10- 1 Achievement Test 10 PART III — FLEXIBLE BUDGETS (22 points) Newton Company uses a flexible budget for overhead based on direct labor hours (DLH). Master budget figures, based on 900,000 direct labor hours, and actual overhead for March, when 86,000 labor hours were worked, are as follows: Master BudgetMarch Actual Variable: Indirect labor$   315,000$ .
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Problem F - II — Cost-Volume-Profit (24 points) Monilus Missles Company prepared the following income statement for 2012: MONILUS MISSLES COMPANY Income Statement For the Year Ended December 31, 2012 ——————————————————————————————————————————— Sales (40,000 units).............................................$1,000,000 Variable expenses..............................................  600,000 Contribution margin.............................................400,000 Fixed expenses................................................  240,000 Net income....................................................$  160,000 Instructions Answer the following independent questions and show computations to support your answers. 1.What is Monilus’ break-even point.
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              29.For a sole proprietorship a withdrawal by an owner: a.increases assets and owner’s equity. b.increases assets and decreases owner’s equity. c.decreases assets and decreases owner’s equity. d.Increases assets and increases owner’s equity.               30.Which of the following items has no effect on owner’s equity? a.Revenue b.Purchase of land c.Owner’s withdrawal d.Expense               31.Payments to owners are called: a.expenses. b.liabilities. c.dividends. d.withdrawals.               32.Withdrawals.
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AT8- 1 Achievement Test 8 PART V — ABC COST DRIVERS (15 points) Stacy Corporation manufactures all-terrain vehicles (ATV) in its Columbia, SC plant. Instructions Identify an appropriate cost driver that may be used to assign each of the following costs to each line of ATVs. Cost drivers may be used more than once. Cost.
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AT10- 1 Achievement Test 10 PART IV — COMPUTATION OF RETURN ON INVESTMENT (ROI) (20 points) For the year ended December 31, 2012, Reese Company reports the following: Sales$6,000,000 Variable costs3,200,000 Controllable fixed costs2,000,000 Average operating assets4,000,000 Instructions: Compute ROI for each of the following situations. Show all computations. 1.The year ended December 31, 2012. _________________ ÷ _________________ = ________% 2.For.
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AT8- 1 Achievement Test 8 PART IV — ACTIVITY-BASED COSTING (20 points) Sparkling Window Company designs and builds custom windows for luxury homes. Most of the windows are custom made but occasionally the company does mass production on order.  Its budgeted manufacturing overhead costs for the year 2012 are as follows:      Overhead Cost Pools        .
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AT9- 1 Achievement Test 9 Achievement Test 9: Chapters 18-19 PART I — MULTIPLE CHOICE (28 points) Instructions:  Designate the best answer for each of the following questions. ____              1.Brooke Company desires net income of $720,000 when it has $4,000,000 of fixed costs and variable costs of 60% of sales. Required sales equals                             a.$3,200,000.              .
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AT11- 1 Achievement Test 11 Achievement Test 11: Chapters 22-23 PART I — MULTIPLE CHOICE (30 points) Instructions:  Designate the best answer for each of the following questions. ____              1.The annual rate of return method of capital budgeting ignores the                             a.time value of money.                             b.timing of the cash flows.                             c.length of time.
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AT9- 1 Achievement Test 9 PART III — SCARCE RESOURCE ALLOCATION (12 points) Flame Company manufactures and sells two products. Relevant per unit data concerning each product are given below:         Product         SVTXLE Selling price$84$125 Variable costs$40$50 Machine hours45 Instructions (a)Compute the contribution margin per unit of limited resource for each product. (b)Which product should be manufactured if 1,000 additional machine.
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  Problem H - II — Partnership Income Allocation (10 points) Rita and Mia report net income of $100,000. Partner salary allowances are Rita $40,000 and Mia $20,000.  Indicate the division of net income to each partner, assuming the income ratios are Rita 70% and Mia 30%. Instructions Indicate the division of net income.
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  Problem G - III — Capital Budgeting (16 points) Scranton Company is considering a capital investment of $1,000,000 in new equipment. It is expected to have a useful life of 10 years with no salvage value. Depreciation is computed by the straight-line method. During the life of the investment, annual net.
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