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Be. 243 Selected data taken from the 2012 financial statements of trading card company Tipton Company, Inc. are as follows (in millions). Net sales$295.9 Current liabilities, February 28, 201139.5 Current liabilities, February 28, 201247.5 Net cash provided by operating activities17.0 Total liabilities, February 28, 201164.2 Total liabilities, February 28, 201271.2 Capital expenditures2.6 Cash dividends6.5 Instructions Compute these ratios at February 20,.
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              48.Financial statements for external users can be described as a.user-specific. b.general-purpose. c.special-purpose. d.managerial reports.               49.Managerial accounting reports can be described as a.general-purpose. b.macro-reports. c.special-purpose. d.classified financial statements.               50.The reporting standard for external financial reports is a.industry-specific. b.company-specific. c.generally accepted accounting principles. d.department-specific.               51.Which of the following statements about internal reports is not true? a.The content of internal reports may extend beyond the.
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              11.Manufacturing costs that cannot be classified as direct materials or direct labor are classified as manufacturing overhead.               12.Raw materials are equal to direct materials minus indirect materials.               13.Raw materials that can be conveniently and directly associated with a finished product are called materials overhead.               14.The total cost of a.
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              31.Managerial accounting is primarily concerned with managers and external users.               32.Planning involves coordinating the diverse activities and human resources of a company to produce a smooth running operation.               33.When the physical association of raw materials with the finished product is too small to trace in terms of cost, they.
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MULTIPLE CHOICE QUESTIONS               38.Managerial accounting applies to each of the following types of businesses except a.service firms. b.merchandising firms. c.manufacturing firms. d.Managerial accounting applies to all types of firms.               39.Managerial accounting information is generally prepared for a.stockholders. b.creditors. c.managers. d.regulatory agencies.               40.Managerial accounting information a.pertains to the entity as a whole and is highly aggregated. b.pertains to subunits of the.
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Exercises Ex. 244 Holt Corporation had net income of $3,000,000 in 2011. Using 2011 as the base year, net income decreased by 40% in 2012 and increased by 110% in 2013. Instructions Compute the net income reported by Holt Corporation for 2012 and 2013. Ex. 245 The following items were taken from the financial statements of.
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Ex. 248 The comparative balance sheet of Dunbar Company appears below: DUNBAR COMPANY Comparative Balance Sheet December 31, Assets   20122011 Current assets ........................................$   340$280 Plant assets ..........................................     660  520 Total assets .......................................$1,000$800 Liabilities and stockholders' equity Current liabilities ......................................$   180$120 Long-term debt .......................................250160 Common stock ........................................310320 Retained earnings .....................................     260  200 Total liabilities and stockholders' equity ...................$1,000$800 Ex. 248(Cont.) Instructions (a)Using horizontal analysis, show the percentage.
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              78.Which of the following is not another name for the term manufacturing overhead? a.Factory overhead b.Pervasive costs c.Burden d.Indirect manufacturing costs               79.Because of automation, which component of product cost is declining? a.Direct labor b.Direct materials c.Manufacturing overhead d.Advertising               80.The product cost that is most difficult to associate with a product is a.direct materials. b.direct labor. c.manufacturing overhead. d.advertising.               81.Manufacturing costs that.
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Ex. 165 For each item, identify all applicable cost labels. Use the following code in your answer: 1 — Product Cost 2 — Period Cost a.Advertising________ b.Direct materials used________ c.Sales salaries________ d.Indirect factory labor________ e.Repairs to office equipment________ f.Factory manager's salary________ g.Direct labor________ h.Indirect materials________ Ex. 166 Canine Company reports the following costs and expenses in May. Factory utilities$  16,500Direct labor$79,100 Depreciation on factorySales salaries51,400 equipment12,650Property.
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              88.Which one of the following represents a period cost? a.The VP of Sales' salary and benefits b.Overhead allocated to the manufacturing operations c.Labor costs associated with quality control d.Fringe benefits associated with factory workers               89.Product costs are also called a.direct costs. b.overhead costs. c.inventoriable costs. d.capitalizable costs.               90.For inventoriable costs to become expenses under the matching principle, a.the.
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108.Clay Tile Manufacturing Inc.'s accounting records reflect the following inventories: Dec. 31, 2011Dec. 31, 2012 Raw materials inventory$  80,000$  64,000 Work in process inventory104,000116,000 Finished goods inventory100,00092,000 During 2012, Clay Tile Manufacturing purchased $960,000 of raw materials, incurred direct labor costs of $200,000, and incurred manufacturing overhead totaling $128,000. How much raw materials were transferred to.
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S-A E 277 Identify and explain factors that affect quality of earnings. S-A E 278(Communication) Overnight Delivery specializes in the overnight transportation of medical equipment and laboratory specimens. The company has selected the following information from its most recent annual report to be the subject of an immediate press release. The financial statements are.
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Ex. 177 From the account balances listed below, prepare a schedule of cost of goods manufactured for Stone Creek Manufacturing Company for the month ended December 31, 2012. Account Balances Finished Goods Inventory, December 31$42,000 Factory Supervisory Salaries12,000 Income Tax Expense18,000 Raw Materials Inventory, December 112,000 Work In Process Inventory, December 3125,000 Sales Salaries Expense14,000 Factory Depreciation Expense8,000 Finished Goods.
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              21.Ending finished goods inventory appears on both the balance sheet and the income statement of a manufacturing company.               22.The beginning work in process inventory appears on both the balance sheet and the cost of goods manufactured schedule of a manufacturing company.               23.In calculating gross profit for a manufacturing company,.
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118.Using $2,200,000 as the total manufacturing costs, compute the cost of goods manufactured using the following information. Raw materials inventory, January 1$     20,000 Raw materials inventory, December 3140,000 Work in process, January 118,000 Work in process, December 3112,000 Finished goods, January 140,000 Finished goods, December 3132,000 Raw materials purchases1,100,000 Direct labor560,000 Factory utilities150,000 Indirect labor50,000 Factory depreciation400,000 Operating expenses420,000 a.$2,192,000. b.$2,194,000. c.$2,206,000. d.$2,208,000.               119.Using $2,240,000 as.
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              98.Cost of goods manufactured is calculated as follows: a.Beginning WIP + direct materials used + direct labor + manufacturing overhead + ending WIP. b.Direct materials used + direct labor + manufacturing overhead – beginning WIP + ending WIP. c.Beginning WIP + direct materials used + direct labor + manufacturing overhead – ending.
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Ex. 173 Club Manufacturing Company has the following data at June 30, 2012: Raw materials inventory, June 1$  13,800 Work in process inventory, June 118,100 Finished goods inventory, June 143,500 Total manufacturing costs410,000 Sales590,000 Work in process inventory, June 3030,400 Finished goods inventory, June 3060,200 Raw materials inventory, June 3018,000 Ex. 173.(Cont.) Instructions (a)Prepare an income statement through gross profit for the.
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Ex. 176 Manufacturing cost data for Angela Company are presented below. Case ACase BCase C Direct materials used(a)$65,400$130,000 Direct labor$  57,00086,000(g) Manufacturing overhead46,50081,600102,000 Total manufacturing costs195,650(d)263,700 Work-in-process, 1/1/11(b)16,500(h) Total cost of work-in-process221,500(e)337,000 Work-in-process, 12/31/11(c)9,00080,000 Cost of goods manufactured180,275(f)(i) Instructions Indicate the missing amount for each letter (a) through (i).       .
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Ex. 246 Here is financial information for Ridell Inc. December 31, 2012December 31, 2011 Current assets$114,000$80,000 Plant assets (net)414,000360,000 Current liabilities91,00065,000 Long-term liabilities134,50090,000 Common stock, $1 par149,500115,000 Retained earnings153,000170,000 Instructions Prepare a schedule showing a horizontal analysis for 2012 using 2011 as the base year. Ex. 247 Here are the comparative income statements of Ericson Corporation. ERICSON CORPORATION Comparative Income Statements For the Years Ended.
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128.Sharon Company has beginning work in process inventory of $144,000 and total manufacturing costs of $636,000. If cost of goods manufactured is $640,000, what is the cost of the ending work in process inventory?  a.$120,000. b.$148,000. c.$160,000. d.$140,000.               129.Caroline Company has beginning and ending raw materials inventories of $96,000 and $120,000, respectively. If.
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Ex. 253 Romero Corporation experienced a fire on December 31, 2012, in which its financial records were partially destroyed. It has been able to salvage some of the records and has ascertained the following balances. December 31, 2012December 31, 2011 Cash $  40,000$  15,000 Receivables (net) 84,000126,000 Inventory200,000180,000 Accounts payable50,00010,000 Notes payable30,00020,000 Common stock, $100 par400,000400,000 Retained earnings170,000101,000 Ex. 253(Cont.) Additional.
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              58.Which of the following is not a management function? a.Constraining b.Planning c.Controlling d.Directing               59.A manager that is establishing objectives is performing which management function? a.Controlling b.Directing c.Planning d.Constraining               60.The management function that requires managers to look ahead and establish objectives is a.controlling. b.directing. c.planning. d.constraining.               61.In determining whether planned goals are being met, a manager is performing the function of a.planning. b.follow-up. c.directing. d.controlling.               62.Which.
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138.Which one of the following managerial accounting approaches attempts to allocate manufacturing overhead in a more meaningful fashion? a.Balanced scorecard b.Just-in-time inventory c.Activity-based costing d.Total-quality management               139.What is “balanced” in the balanced scorecard approach? a.The number of products produced b.The emphasis on financial and non-financial performance measurements c.The amount of costs allocated to products d.The number of defects.
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              68.Which one of the following is not a direct material? a.A tire used for a lawn mower b.Plastic used in the covered case for a home PC c.Steel used in the manufacturing of steel-radial tires d.Lubricant for a ball-bearing joint for a large crane               69.Which one of the following is not a cost.
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Ex. 255 The following ratios have been computed for Piper Company for 2012. Profit margin ratio20% Times interest earned12 times Current ratio2.5:1 Receivable turnover ratio5 timesDebt to total assets ratio24% The 2012 financial statements for Piper Company with missing information follows: PIPER COMPANY Comparative Balance Sheet December 31, —————————————————————————————————————————— Assets     2012     2011  Cash .........................................$  25,000$  35,000 Marketable securities ..............................15,00015,000 Accounts receivable (net) ..........................?(6)50,000 Inventory.
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BE 158 Presented below are incomplete 2012 manufacturing cost data for Nancy Corporation. Direct Materials Used Direct Labor Factory Overhead Total Manufacturing Costs (a) $  17,000 $42,000 ? $  83,000 (b) $148,000 ? $112,000 $470,000 BE 158.(Cont.) Instructions Determine the missing amounts. BE 159 Presented below are incomplete 2012 manufacturing cost data for Sanchez Corporation.  Direct Materials Used Direct Labor Factory Overhead Total Manufacturing Costs (a) $48,000 $72,000 ? $164,000 (b) $95,000 ? $80,000 $305,000 (c) ? $80,000 $120,000 $270,000 Instructions Determine the missing amounts. BE 160 Buckets of Flowers Manufacturing Company.
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BRIEF Exercises BE 152 Presented below are Sand Dollar Company’s monthly manufacturing cost data related to its personal computer products. (a)Taxes on factory building$820,000 (b)Raw materials 66,000 (c)Depreciation on manufacturing equip.210,000 (d)Wages for assembly line workers340,000 Instructions Enter each cost item in the following table, placing an “X” under the appropriate headings. Product Costs Direct Materials Direct Labor Factory Overhead (a) (b) (c) (d) BE 153 Determine whether.
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Be. 239 The following data are taken from the financial statements of Mackey Company:      2012       2011   Average accounts receivable$   530,000$   550,000 Net sales on account5,800,0005,200,000 Terms for all sales are 2/10, n/30 Instructions (a)Compute the receivables turnover ratio and the average collection period for both years. (b)What conclusion can an analyst draw about the management of the.
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Ex. 178 Red Cardinal Manufacturing Company has the following data: Direct labor$160,000 Direct materials used151,000 Total manufacturing overhead208,000 Beginning work in process26,000 Instructions Compute (a) total manufacturing costs and (b) total cost of work in process. Ex. 179 The following costs and inventory data were taken from the accounts of Skillet Company for 2012: January 1, 2012December 31, 2012 Inventories:Raw materials$ .
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SET B 271.Match the ratios with their formulas by entering the appropriate letter in the space provided. A.Current ratioF.Times interest earned B.Current cash debt coverage ratio G.   Inventory turnover C.Profit margin ratioH.Average collection period D.Asset turnover ratioI.Average days in inventory E.Price-earnings ratioJ.Payout ratio ____  1. Cost of goods sold Average inventory ____  2. Net income Net sales ____  3. Cash dividends declared on common.
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SHORT-ANSWER ESSAY QUESTIONS S-A E 272 Explain sustainable income. What relationship does this concept have to the treatment of irregular items on the income statement? S-A E 273 What issues must be considered when determining whether or not a loss from earthquake destruction should be treated as an extraordinary item? S-A E 274 Raphael Mendoza, the.
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Be. 241 The balance sheet for Renner Corporation at the end of the current year includes the following: Bonds payable, 6% ......................... $5,000,000 6% Preferred stock, $100 par ..................1,000,000 Common stock, $10 par ......................2,000,000 Net income was $565,000 and income tax expense for the current year amounted to $285,000. Cash dividends paid on common stock.
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MATCHING SET A 270.For each of the ratios listed below, indicate by the appropriate code letter, whether it is a liquidity ratio, a profitability ratio, or a solvency ratio. Code: L =Liquidity ratio P =Profitability ratio S=Solvency ratio ____              1.Price-earnings ratio ____              2.Return on assets ratio ____              3.Receivables turnover ratio ____              4.Earnings per share ratio ____              5.Payout ratio ____              6.Current cash debt.
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Be. 235 Selected information from the comparative financial statements of Francona Company for the year ended December 31 appears below:       2012     2011  Accounts receivable (net)$   175,000$200,000 Inventory130,000170,000 Total assets1,100,000800,000 Current liabilities140,000110,000 Long-term debt410,000300,000 Net credit sales  900,000700,000 Cost of goods sold600,000530,000 Interest expense40,00025,000 Income tax expense60,00029,000 Net income120,00085,000 Net cash provided by operating activities220,000135,000 Instructions Answer the following questions relating to the year ended.
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Ex. 169 Cabinets and Clocks Manufacturing Company incurs the following manufacturing costs and expenses during the month of May.               1.Assembly line wages               2.Raw materials used directly in product               3.Depreciation on office equipment               4.Property taxes on factory building               5.Rent on factory building               6.Sales commissions               7.Depreciation on factory equipment               8.Factory utilities               9.Wages for.
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COMPLETION STATEMENTS               257.Discontinued operations refers to the disposal of a __________________ of a business.               258.The two criteria necessary for an item to be classified as an extraordinary item are that the transaction or event must be (1) _______________ and (2) ________________.               259.A change in depreciation methods during the year would.
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Be. 231 Horizontal analysis (trend analysis) percentages for Harley Company’s sales, cost of goods sold, and expenses are listed here. Horizontal Analysis  2013   2012   2011  Sales              98.2%              104.8%              100.0% Cost of goods sold              102.5              98.0              100.0 Expenses              108.6              96.4              100.0 Instructions Explain whether Harley’s net income increased, decreased, or remained unchanged over the 3-year period. Be. 232 Using the.
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Ex. 171 Among the items that Sand Dollar Shop accounts for are the following:               1.Direct labor               2.Office supplies used               3.Depreciation on printing machines                            4.Finished goods inventory, 12/31                            5.Raw materials inventory, 1/1               6.Cost of goods manufactured               7. Work in process, 1/1               8.Office supplies inventory, 12/31                            9.Indirect labor               10.Heat and.
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Ex. 252 Here is the income statement for Gillman, Inc. GILLMAN, INC. Income Statement For the Year Ended December 31, 2012 Sales              $400,000 Cost of goods sold                250,000 Gross profit              150,000 Expenses (including $12,000 interest and $22,000 income taxes)                  100,000 Net income              $  50,000 Ex. 252(Cont.) Additional information: 1.Common stock outstanding January 1, 2012, was 30,000 shares, and 40,000 shares were.
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Ex. 254 The financial statements of Lewis Company appear below: LEWIS COMPANY Comparative Balance Sheet December 31, Assets    2012     2011 Cash ............................................$  25,000$  40,000 Marketable securities ................................20,00060,000 Accounts receivable (net) .............................50,00030,000 Inventory .........................................140,000170,000 Property, plant and equipment (net) ......................  170,000  200,000 Total assets ....................................$405,000$500,000 Ex. 254(Cont.) Liabilities and stockholders' equity Accounts payable ...................................$  25,000$  30,000 Short-term notes payable .............................40,00090,000 Bonds payable .....................................75,000160,000 Common stock .....................................160,000145,000 Retained earnings ..................................   .
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Ex. 167 Direct Delivery Service reports the following costs and expenses in June 2012. Indirect materials$  8,400Driver's salaries$11,000 Depreciation on deliveryAdvertising2,100 equipment11,200Delivery equipment Dispatcher's salary5,000repairs300 Property taxes on officeOffice supplies650 building870Office utilities1,490 CEO's salary12,000Repairs on office Gas and oil for delivery trucks3,200equipment180 Instructions Determine the total amount of (a) delivery service (product) costs and (b) period costs. Ex. 168 For each item listed.
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Be. 237 Kershaw Corporation had the following comparative current assets and current liabilities: Dec. 31, 2012Dec. 31, 2011 Current assets Cash$  25,000$  30,000 Marketable securities40,00010,000 Accounts receivable60,00095,000 Inventory110,00090,000 Prepaid expenses    35,000    20,000 Total current assets$270,000$245,000 Current liabilities Accounts payable$120,000$110,000 Salaries payable40,00030,000 Income tax payable    10,000    15,000 Total current liabilities$170,000$155,000 During 2012, net credit sales and cost of goods sold were $570,000 and $350,000, respectively. Net.
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Ex. 174 Chocolate Corporation incurred the following costs while manufacturing its product. Materials used in product$ 90,000Advertising expense$45,000 Depreciation on plant60,000Property taxes on plant19,000 Property taxes on store7,500Delivery expense21,000 Labor costs of assembly-line workers110,000Sales commissions35,000 Factory supplies used  23,000Salaries paid to sales clerks50,000 Work-in-process inventory was $22,000 at January 1 and $15,500 at December 31. Finished goods.
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Ex. 256 Holcomb Corporation has issued common stock only. The company has been successful and has a gross profit rate of 20%. The information shown below was taken from the company's financial statements. Beginning inventory$   482,000 Purchases4,346,000 Ending inventory? Average accounts receivable700,000 Average common stockholders' equity3,500,000 Sales (all on credit)5,600,000 Net income420,000 Instructions Compute the following: (a)Receivables turnover and the average.
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Exercises Ex. 162 Financial accounting information and managerial accounting information have a number of distinguishing characteristics. For each of the characteristics listed below, indicate which characteristics are more closely related to financial accounting by placing the letter "F" in the space to the left of the item and indicate those characteristics which.
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Ex. 250 Operating data for Petersen Corporation are presented below     2012     2011   Sales $800,000$600,000 Cost of goods sold  480,000390,000 Selling expenses  120,00078,000 Administrative expenses     80,00054,000 Income tax expense    36,00025,000 Net income    84,00053,000 Instructions Prepare a schedule showing a vertical analysis for 2012 and 2011.   Ex. 251 Armada Company has these comparative balance sheet data: ARMADA COMPANY Balance Sheets December 31,     2012     2011  Cash $ .
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Ex. 249 The following information was taken from the financial statements of Bailey Company:     2012     2011  Gross profit on sales ..............................$600,000$680,000 Income before income taxes ........................230,000221,000 Net income .....................................160,000153,000 Net income as a percentage of net sales ................10%9% Instructions (a)Compute the net sales for each year. (b)Compute the cost of goods sold in dollars and as a percentage.
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Be. 233 Using these data from the comparative balance sheet of Kile Company, perform vertical analysis. December 31, 2012December 31, 2011 Accounts receivable$   500,000$   400,000 Inventory780,000600,000 Total assets3,250,0003,000,000 Be. 234 Vertical analysis (common-size) percentages for Hillman Company’s sales, cost of goods sold, and expenses are listed here. Vertical Analysis  2013   2012   2011  Sales              100.0%              100.0%              100.0% Cost of goods sold             .
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IFRS QUESTIONS 1. Under IFRS, there is no classification for      a. changes in accounting estimates.      b. changes in accounting principles.      c. discontinued operations.      d. extraordinary items. 2. The accounting for each of the following is the same under IFRS and GAAP except for     a. extraordinary items.     b. discontinued operations.     c. changes in.
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TRUE-FALSE STATEMENTS               1.Reports prepared in financial accounting are general-purpose reports, whereas reports prepared in managerial accounting are usually special-purpose reports.               2.Managerial accounting information generally pertains to an entity as a whole and is highly aggregated.               3.Managerial accounting applies to all forms of business organizations.               4.Determining the unit cost of manufacturing.
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