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Study Resources (Accounting)

171.Match each item with its definition. 1.An analysis of a company’s ability to pay its current liabilities. Horizontal analysis 2.Occurs when a company abandons a segment. Extraordinary Items 3.Something that is both unusual and infrequent. Current position analysis 4.This requires a restatement of prior period financial statements. Vertical analysis 5.A percentage analysis of increases and decreases in related.
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41.Job cost sheets can provide information to managers on unit cost trends, the cost impact of continuous improvement in the manufacturing process, the cost impact of materials changes, and the cost impact of direct materials price or direct labor rate changes over time. 42.Job order cost accounting systems may be used.
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180.From the following data, determine for the current year the (a) rate earned on total assets, (b) rate earned on stockholders' equity, (c) rate earned on common stockholders' equity, (d) earnings per share on common stock, (e) price-earnings ratio on common stock, and (f) dividend yield on common stock. Assume.
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51.Match each of the following terms with the phrase that most closely describes it. Each answer may be used only once. 1.The stock ledger. Activity based costing 2.Expenses of the current period. Period costs 3.Typically used by companies whose products are indistinguishable from each other. Overapplied overhead 4.Applied overhead is less than actual overhead incurred. Job order cost.
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169.The following information is available for Carter Corporation for 2012: 1) Materials inventory decreased $4,000 during 2012. 2) Materials inventory on December 31, 2012, was 50% of materials inventory on January 1, 2012. 3) Beginning work in process inventory was $145,000. 4) Ending finished goods inventory was $65,000. 5) Purchases of direct materials were $154,700. 6).
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163.The following data (in thousands of dollars) have been taken from the accounting records of Rayburn Corporation for the current year. Sales $1,980 Selling expenses 280 Manufacturing overhead 460 Direct labor 400 Administrative expenses 300 Purchases of raw materials 240 Finished goods inventory, beginning 240 Finished goods inventory, ending 320 Raw materials inventory, beginning 80 Raw materials inventory,.
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184.Prepare an Income Statement using the following data for Young Adventures for the year ended December 31, 2012: Net Sales $21,500,000 Cost of Merchandise Sold 10,900,000 Operating Expenses 6,300,000 Losses from Asset Impairment 2,800,000 Income Tax Expense 500,000 Loss on Discontinued Operations 100,000 Net Loss on Extraordinary Item 125,000 185.From the following data for Norton Company for the year ended December31, 2012 prepare a multiple-step.
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152.The aspects of the management process are listed below. Match each phase to the appropriate description. _____ Planning _____ Directing _____ Controlling _____ Improving _____ Decision making a) Used by managers for continuous improvement b) Managers must decide how to respond to unfavorable performances c) Used by management to develop the organization’s objectives and goals d) Monitoring the operating.
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168.Bradenton Company reports the following for 2012: Income from continuing operations before income tax $500,000 Extraordinary property loss from hurricane $60,000* Loss from discontinued operations $90,000* Weighted average number of shares outstanding 40,000 Applicable tax rate 40% * Net of any tax effect Required: (1) Prepare a partial income statement for Bradenton Company beginning with income from continuing operations before income tax. (2) Calculate the.
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140.Cost of goods manufactured is equal to: A.total manufacturing costs plus ending materials inventory less beginning materials inventory B.cost of goods sold beginning work in process inventory less ending work in process inventory C.total manufacturing costs plus ending work in process inventory less beginning work in process inventory D.total manufacturing costs plus beginning work.
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11.The job order costing system is used by service firms to determine revenues, expenses, and ultimately profit. 12.Perpetual inventory controlling accounts and subsidiary ledgers are maintained for materials, work in process, and finished goods in cost accounting systems. 13.When the goods are sold, their costs are transferred from Work in Process to.
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41.Prime costs are the combination of direct labor costs and factory overhead costs. 42.Prime costs are the combination of direct materials and direct labor costs. 43.Conversion costs are the combination of direct labor, direct material and factory overhead costs. 44.Product costs are also referred to as inventoriable costs. 45.Period costs include direct materials and.
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11.The controller's staff consists of management accountants responsible for systems and procedures, general accounting, budgets, taxes, and cost accounting. 12.Managerial accounting reports must be useful to the user of the information. 13.Planning is the process of monitoring operating results and comparing actual results with the expected results. 14.Planning is the process of developing.
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100.Which of the following manufacturing costs is an indirect cost of producing a product? A.Oil lubricants used for factory machinery B.Commissions for sales personnel C.Hourly wages of an assembly worker D.Memory chips for a microcomputer manufacturer 101.Prime costs are A.direct materials and factory overhead B.direct materials and direct labor C.direct labor and factory overhead D.period costs and factory overhead 102.Conversion.
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21.The cost of wages paid to employees directly involved in converting materials to finished product is classified as direct labor cost. 22.If the cost of employee wages is not a significant portion of the total product cost, the wages are classified as direct materials cost. 23.For a construction contractor, the wages of.
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31.Conversion cost is the combination of direct materials cost and factory overhead cost. 32.Factory overhead is an example of a product cost. 33.Direct labor costs are included in the conversion costs of a product. 34.The costs of materials and labor that do not enter directly into the finished product are classified as factory.
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31.In a factory with several processing departments, a single factory overhead rate may not provide accurate product costs and effective cost control. 32.Nonmanufacturing costs are generally classified into two categories: selling and administrative. 33.The current year's advertising costs are normally considered period costs. 34.Direct labor cost is an example of a period cost. 35.A.
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165.Classify the following costs as direct, indirect, or neither: a) indirect labor incurred b) factory equipment depreciation c) indirect materials used d) office equipment depreciation e) direct materials used f) insurance expired on administrative facilities g) direct labor incurred h) administrative office salaries i) salespersons’ salaries j) utilities on factory building k) utilities on administrative facilities 166.Use the correct number.
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156.The Zoe Corporation has the following information for the month March. Determine the (a) cost of goods manufactured, and (b) cost of goods sold. Cost of materials placed in production $69,000 Direct labor 27,000 Factory overhead 34,000 Work in process, March 1 15,000 Work in process, March 31 19,500 Finished goods inventory, March 1 25,000 Finished goods inventory, March 31 23,000 157.Sienna Company has the.
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83.Each account in the cost ledger is called a: A.finished goods sheet B.stock record C.materials requisition D.job cost sheet 84.Selected accounts with some debits and credits omitted are presented as follows: Work in Process Aug. 1 Balance 275,000 Aug. 31 Goods finished 1,030,000 31 Direct materials X 31 Direct labor 450,000 31 Factory overhead X Factory Overhead Aug. 1-31 Costs incurred 145,000 Aug. 1 Balance 15,000 31 Applied (30% of direct labor cost) X If the balance of.
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70.In order to be useful to managers, management accounting reports should possess all of the following characteristics EXCEPT: A.provide objective measures of past operations and subjective estimates about future decisions B.be prepared in accordance with generally accepted accounting principles C.be provided at any time management needs information D.be prepared to report information for any.
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130.Rent expense on a factory building would be treated as a(n): A.period cost B.product cost C.direct cost D.both A and C are correct 131.Rent expense incurred on a factory building would be treated as a(n): A.indirect cost B.period cost C.product cost D.both A and C are correct 132.Which of the following is not a factory overhead cost? A.materials used directly in.
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159.Watson Company has the following data: Work in Process, Beginning $18,000 Work in Process, Ending $25,000 Direct Labor costs incurred $5,000 Cost of Goods Manufactured $9,000 Factory Overhead $7,000 Show how you would calculate the amount of Direct Materials Used. 160.Laramie Technologies had the following data: Cost of Materials Used $50,000 Direct Labor costs $56,000 Factory Overhead $28,000 Work in Process, beg. $31,000 Work in Process,.
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166.The balance sheet for Borglum Company at the end of the current fiscal year indicated the following: Bonds payable, 10% (issued in 2000, due in 2020) $5,000,000 Preferred 10% stock, $100 par 1,000,000 Common stock, $10 par 2,000,000 Income before income tax was $1,500,000 and income taxes were $200,000, for the current year. Cash dividends paid on.
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53.Which of the following are the two main types of cost accounting systems for manufacturing operations? A.Process cost and general accounting systems B.Job order cost and process cost systems C.Job order and general accounting systems D.Process cost and replacement cost systems 54.Which of the following would most likely use a job order costing system? A.A paper.
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51.Managerial information is for external as well as internal stakeholders. 52.A report analyzing how many products need to be sold to cover operating costs is not typically a managerial accounting report. 53.A report analyzing the dollar savings of purchasing new equipment to speed up the production process is a managerial accounting report. 54.A.
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103.Materials purchased on account during the month amounted to $195,000. Materials requisitioned and placed in production totaled $168,000. From the following, select the entry to record the transaction on the day the materials were requisitioned by the production department. A.Materials168,000 Work in Process168,000 B.Work in Process195,000 Materials195,000 C.Work in Process168,000 Materials168,000 D.Work in Process168,000 .
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21.If factory overhead applied exceeds the actual costs, overhead is said to be underapplied. 22.If the underapplied factory overhead amount is material, it is transferred to Cost of Goods Sold at the end of the fiscal year. 23.If the underapplied factory overhead amount is immaterial, it is transferred to Cost of Goods.
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73.In a job order cost accounting system, the entry to record the flow of direct materials into production is: A.debit Work in Process, credit Materials B.debit Materials, credit Work in Process C.debit Factory Overhead, credit Materials D.debit Work in Process, credit Supplies 74.A summary of the materials requisitions completed during a period serves as the.
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164.The following data were extracted from the income statement of Maine Solutions, Inc. 2012 2011 Sales $1,139,600 $1,192,320 Beginning inventories 80,000 64,000 Cost of goods sold 500,800 606,000 Ending inventories 72,000 80,000 Required: (1) Determine for each year: a. The inventory turnover; and b. The number of days’ sales in inventory. Round to nearest dollar and one decimal place. (2) What conclusions can be drawn from these data concerning the inventories? 165.The following selected.
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1.Cost accounting systems are used to supply cost data information on costs incurred by a manufacturing process or department. 2.A manufacturer may employ a job order cost system for some of its products and a process cost system for others. 3.A job order cost accounting system provides for a separate record of.
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63.Which of the following costs are NOT included in finished goods inventory? A.Direct labor B.Factory overhead C.Company president's salary D.Direct materials 64.Which of the following is the correct flow of manufacturing costs? A.Raw materials, work in process, finished goods, cost of goods sold B.Raw materials, finished goods, cost of goods sold, work in process. C.Work in process, finished.
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161.A company reports the following: Net income $270,000 Preferred dividends $ 10,000 Shares of common stock outstanding 20,000 Market price per share of common stock $36.40 Determine the company’s price-earnings ratio. Round your answer to one decimal place. 162.Why would you compare or not compare Coca-Cola and Pepsi-Cola (PepsiCo) as companies to each other? 163.Revenue and expense data for Young Technologies.
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90.If the cost of direct materials is a small portion of total production cost, it may be classified as part of: A.direct labor cost B.selling and administrative costs C.miscellaneous costs D.factory overhead cost 91.The cost of wages paid to employees directly involved in the manufacturing process in converting materials into finished product is classified as: A.factory.
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178.The following data are taken from the financial statements: Current Preceding Year Year Net sales $3,600,000 $4,000,000 Cost of goods sold 2,000,000 2,700,000 Average inventory 332,000 328,000 Inventory, end of year 372,000 347,000 (a) Determine for each year (1) the inventory turnover and (2) the number of days' sales in inventory. (b) Comment on the favorable and unfavorable trends revealed by the data. 179.The following data are taken from the financial.
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61.Period costs are operating costs that are expensed in the period in which the goods are sold. 62.Factory overhead includes all manufacturing costs except direct materials and direct labor. 63.Labor costs that are directly traceable to the product are part of factory overhead. 64.Product costs include direct labor and advertising expense. 65.Indirect labor and.
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1.Accounting is an information system that provides essential data about the economic activities of an entity to various users to aid them in making informed judgments and decisions. 2.Managerial accounting reports are prepared according to generally accepted accounting principles. 3.Managerial accounting information includes both historical and estimated data. 4.Since there are few rules.
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120.The primary goal of managerial accounting is to provide information to: A.investors B.creditors C.management D.external auditors 121.Goods that are partially completed by a manufacturer are referred to as: A.merchandise inventory B.work in process inventory C.finished goods inventory D.materials inventory 122.A plant manager’s salary may be referred to as: A.either a direct cost or an indirect cost since managerial accounting is not.
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167.The Sharpe Company reports the following information for 2012: Sales $70,600 Direct materials used 7,300 Depreciation on factory equipment 4,700 Indirect labor 5,900 Direct labor 11,300 Factory rent 4,200 Factory utilities 1,200 Sales salaries expense 16,300 Office salaries expense 8,900 Indirect materials 1,200 Compute: a) product costs b) period costs 168.Allen Company used $71,000 of direct materials and incurred $37,000 of direct labor costs during.
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157.A company reports the following: Net sales $2,520,000 Average total assets $1,400,000 Determine the ratio of net sales to total assets. Round your answer to one decimal place. 158.A company reports the following income statement and balance sheet information for the current year: Net income $ 180,000 Interest expense $ 20,000 Average total assets $ 2,000,000 Determine the rate earned on total.
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175.Condensed data taken from the ledger of Joplin Company at December 31, 2012 and 2011, are as follows: 2012 2011 Current assets $160,000 $130,000 Property, plant, and equipment 450,000 400,000 Intangible assets 20,700 30,000 Current liabilities 70,000 80,000 Long-term liabilities 210,000 250,000 Common stock 225,000 150,000 Retained earnings 125,700 80,000 Prepare a comparative balance sheet, with horizontal analysis, for December 31, 2012 and 2011. (Round percents to one decimal point.) .
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181.The following information has been condensed from the December 31 balance sheets of Hanson Co.: 2012 2011 Assets: Current assets $ 825,500 $674,300 Fixed assets (net) 1,473,600 1,275,300 Total assets $2,299,100 $1,949,600 Liabilities: Current liabilities $313,500 $309,600 Long-term liabilities 703,000 545,000 Total liabilities $1,016,500 $854,600 Stockholders' equity $1,282,600 $1,095,000 Total liabilities and stockholders' equity $2,299,100 $1,949,600 (a) Determine the ratio of fixed assets to long-term liabilities for 2012 and 2011. (b) Determine the ratio of liabilities to stockholders'.
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172.Classify the following costs as either a product cost or a period cost: a) direct materials used b) factory utilities c) salespersons’ commissions d) salary of plant manager e) indirect materials used f) depreciation on store equipment g) indirect labor incurred h) advertising expense i) direct labor incurred j) factory machinery repairs and maintenance k) _____________ depreciation on factory machinery l) plant.
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170.Rosalba Manufacturing Company had the following account balance for 2012: January 1 December 31 Accounts receivable $27,000 $33,000 Materials inventory 22,500 6,000 Work in process inventory 70,200 48,000 Finished goods inventory 3,000 15,000 Collections on account were $625,000 in 2012. Cost of goods sold was 68% of sales. Direct materials purchased amounted to $90,000. Factory overhead was 300% of the cost of.
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110.Cost of Materials Used $40,000 Direct Labor costs $55,000 Factory Overhead $32,000 Work in Process, beg. $28,000 Work in Process, end. $18,000 What is Cost of Goods Manufactured? A.$173,000 B.$97,000 C.$117,000 D.$137,000 111.Cost of Materials Used $40,000 Direct Labor costs $55,000 Factory Overhead $32,000 Work in Process, beg. $28,000 Work in Process, end. $18,000 Finished Goods,beg. $28,000 Finished Goods, end. $18,000 What is Cost of Goods Sold? A.$147,000 B.$137,000 C.$10,000 D.$128,000 112. Beginning.
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174.The comparative balance sheet of Ramos Company appears below: (a) RAMOS COMPANY Comparative Balance Sheet December 31, 2012 and 2011 Assets 2012 2011 Current assets $ 440 $280 Plant assets 675 520 Total assets $1,115 $800 Liabilities and stockholders' equity Current liabilities $ 280 $120 Long-term debt 250 160 Common stock 325 320 Retained earnings 260 200 Total liabilities and stockholders' equity $1,115 $800 Instructions (a) Using horizontal analysis, show.
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80.Which of the following are basic phases of the management process? A.Supervising and directing B.Decision making and supervising C.Organizing and directing D.Planning and controlling 81.What term is used to describe the process of monitoring operating results and comparing actual results with the expected results? A.Improving B.Controlling C.Directing D.Planning 82.What term is used to describe the process of developing the organization’s.
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162.The Zoe Corporation has the following information for the month of March. Prepare a (a) schedule of cost of goods manufactured, (b) an income statement for the month ended March 31, and (c) prepare only the inventory section of the balance sheet. Purchases $92,000 Materials inventory, March 1 6,000 Materials inventory, March 31 8,000 Direct labor 25,000 Factory overhead 37,000 Work.
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93.The recording of the jobs shipped and customers billed would include a debit to: A.Accounts Payable B.Cash C.Finished Goods D.Cost of Goods Sold 94.The recording of the jobs shipped and customers billed would include a credit to: A.Accounts Payable B.Cash C.Finished Goods D.Cost of Goods Sold 95.The finished goods account is the controlling account for the: A.cost ledger B.materials ledger C.work in process.
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176.Revenue and expense data for Martinez Company are as follows: 2012 2011 Administrative expenses $37,000 $20,000 Cost of goods sold 350,000 320,000 Income tax 40,000 32,000 Net sales 800,000 700,000 Selling expenses 150,000 110,000 (a) Prepare a comparative income statement, with vertical analysis, stating each item for both 2012 and 2011 as a percent of sales. (b) Comment upon significant changes disclosed by the comparative income statement. 177.The following data are.
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