Info
Warning
Danger

Study Resources (Accounting)

PricingJ - 1 COMPLETION STATEMENTS               178.The difference between the target price and the desired profit is the _________________ cost of the product.               179.In the cost-plus pricing formula, the target selling price equals cost + (________________ × cost).               180.The _______________ pricing approach has a major advantage:  it is simple to compute.               181.Under.
5 Views
View Answer
AT4-1 Achievement Test 4 PART V — ACCOUNTS RECEIVABLE (20 points) 1.ACCOUNTS RECEIVABLE—UNCOLLECTIBLE ACCOUNTS Instructions: Present the journal entries specified below. Show supporting calculations. Each item should be considered independently. The trial balance of Priority Paints at December 31, 2014, includes the following:   Debits Credits Accounts Receivable ..............................$94,000 Allowance for Doubtful Accounts .....................500 Sales (all on credit) ...............................$550,000 A.If.
159 Views
View Answer
PricingJ - 1 SHORT-ANSWER ESSAY QUESTIONS S-A E  189 A variation on cost-plus pricing is time-and-material pricing. Under this approach, two pricing rates are set. Required: Explain where this approach is used and identify the steps involved in time-and-material pricing.  Also explain what the material loading charge covers and how it is expressed. S-A E  190 There.
10 Views
View Answer
PricingJ - 1 Ex. 162 Laserspot is involved in producing and selling high-end golf equipment. The company has recently been involved in developing various types of laser guns to measure yardages on the golf course. One small laser gun, called LittleLaser, appears to have a very large potential market. Because of competition,.
5 Views
View Answer
PricingJ - 1 Ex. 171 The Pacific Company is a multidivisional company. Its managers have full responsibility for profits and complete autonomy to accept or reject transfers from other divisions. Division A produces a sub-assembly part for which there is a competitive market. Division B currently uses this sub-assembly for a final.
6 Views
View Answer
PricingJ - 1 Ex. 169 Chuck's Classic Cars restores classic automobiles to showroom status. Budgeted data for the current year are: Material   TimeLoading ChargesCharges Restorers' wages and fringe benefits$270,000 Puchasing agent's salary and fringe benefits$  67,500 Administrative salaries and fringe benefits60,00022,500 Other overhead costs    20,000  75,600 Total budgeted costs$350,000$165,600 The company anticipated that the restorers would work a total of.
7 Views
View Answer
AT1-1 Achievement Test 1 PART III — SHORT PROBLEMS (10 points) Instructions: Present the solutions, with appropriate supporting calculations, for each of the following independent problems. 1.Given the following information, compute 2014 net income for SaraDyne Company. Stockholders’ equity—January 1, 2014$  84,000 Stockholders’ equity—December 31, 201487,000 Stockholder investments during 201412,000 Dividends paid during 201436,000 Revenues during 2014310,000 2.Given the following.
15 Views
View Answer
PricingJ - 1 Ex. 166 Skyhigh Company is in the process of setting a selling price for its newest model stunt kite, the Looper. The controller of Skyhigh estimates variable cost per unit for the new model to be as follows: Direct materials$15 Direct labor8 Variable manufacturing overhead4 Variable selling and administrative expenses    5 $32 In addition, Skyhigh.
7 Views
View Answer
PricingJ - 1 BRIEF Exercises BE  146 Home Appliances Co. wants to introduce a new digital display, laser driven iron to the market. The estimated unit sales price is $85. The required investment is $3,500,000. Unit sales are expected to be 300,000 and the minimum required rate of return on all investments is.
6 Views
View Answer
PART I — MULTIPLE CHOICE (30 points) Instructions: Designate the best answer for each of the following questions. ____              1.A company returned goods for credit to the supplier. Which one of the following is a portion of the journal entry required if a perpetual inventory system is used?               a.Credit Accounts Payable              .
18 Views
View Answer
AT5-1 Achievement Test 5 PART II—MATCHING (6 points) Instructions: Match the cash expenditures given below with the appropriate accounting treatment. An individual classification may be used more than once, or not at all. If none of the listed treatments are appropriate for an expenditure, place an ‘X’ in the answer space. Treatments A.Record the.
12 Views
View Answer
AT4-1 Achievement Test 4 PART III — BANK RECONCILIATION WITH ENTRIES (18 points) Alykhan Industries provided the following information for the month of February. 1.Balance per bank on February 28—$31,080 2.Balance per books on February 28—$32,210 3.Total outstanding checks at February 28—$2,100 4.Debit memoranda: a.NSF check from Sanderson, Inc.—$450 b.Printing company checks—$20 c.Electronic payment to bank for a loan—$2,220. Of.
11 Views
View Answer
AT1-1 Achievement Test 1 PART VI — RATIOS (12 points) Selected information from the financial statements of Joe’s Coffee Brewers for the year ended December 31, 2014, appears below: Current assets$   180,000 Total assets550,000 Current liabilities75,000 Long-term liabilities90,000 Sales revenue870,000 Dividends60,000 Net income134,000 Instructions: Calculate the amounts indicated below relating to the year ended December 31, 2014. The number of shares.
8 Views
View Answer
PricingJ - 1 Exercises Ex. 160 Stone Company is considering introducing a new line of pagers, targeting the preteen population. Stone believes that if the pagers can be priced competitively at $45, approximately 300,000 units can be sold. The controller has determined that an investment in new equipment totaling $4,000,000 will be required..
33 Views
View Answer
PART III — INVENTORY COMPUTATIONS (18 points) Lan Enterprises uses a periodic inventory system for buckets it sells. It had a beginning inventory on April 1 of 80 units at a cost of $6 per unit. During April, the following purchases and sales were made.        Purchases             Sales       April760units at $7.00April5120units at $20 13120units at $7.501190units.
11 Views
View Answer
AT1-1 Achievement Test 1 PART IV — TYPES OF ACCOUNTS (10 points) Instructions: Place an ‘X’ in the appropriate column to designate whether each of the following accounts is an asset, a liability, stockholders’ equity, revenue or expense account. Account Asset Liability Stockholders’ Equity Revenue Expense Common Stock Rent Expense Equipment Retained Earnings Dividends Accounts Receivable Mortgage Payable Accounts Payable Sales Revenue Cash   .
8 Views
View Answer
PART V — COMPUTATION OF NET PURCHASES/COST OF GOODS SOLD (10 points) Journey Luggage uses a periodic inventory system and has the following account balances:               Beginning Inventory               $31,000               Ending Inventory               $  18,000 Purchase Discounts 2,000Purchases 240,000 Purchase Returns and Allowances 3,000Freight-In 11,000 Operating Expenses88,000Net sales489,000 Instructions: Compute each of the.
11 Views
View Answer
AT6-1 Achievement Test 6 PART I — MULTIPLE CHOICE (36 points) Instructions: Designate the best answer for each of the following questions. ____              1.Which of the following is a disadvantage of the corporate form of business entity?               a.Unlimited liability of stockholders               b.Continuous life               c.Lack of government regulation               d.Double taxation ____              2.What effect occurs.
13 Views
View Answer
AT4-1 Achievement Test 4 PART I — MULTIPLE CHOICE (30 points) Instructions: Designate the best answer for each of the following questions. ____              1.Which of the following represent the three classifications of receivables? Accounts receivable, notes receivable, and other receivables Accounts to be collected, accounts estimated that will not be collected, accounts that were not.
21 Views
View Answer
AT4-1 Achievement Test 4 PART VI — NOTES RECEIVABLE (9 points) Instructions: Prepare journal entries to record the following events. Round amounts to the nearest whole dollar: June1Hanalia Collision received a 5%, 4-month $5,000 note dated June 1 from a customer for the balance due. Sept.              30The note is honored and no interest has been.
15 Views
View Answer
PricingJ - 1 131.In the absorption-cost approach, the markup percentage covers the a.desired ROI only. b.desired ROI and selling and administrative expenses. c.desired ROI and fixed costs. d.selling and administrative expenses only. 132.The absorption-cost approach is used by most companies for all of the following reasons except that a.absorption cost information is readily provided by a company's.
5 Views
View Answer
AT4-1 Achievement Test 4 PART II — INTERNAL CONTROL OVER CASH RECEIPTS AND DISBURSEMENTS (12 points) Six internal control principles related to cash transactions are discussed in the textbook. These principles, with code letters, are: CodeInternal Control Principle AEstablishment of responsibility BSegregation of duties CDocumentation procedures DPhysical controls EIndependent internal verification FHuman resource controls Instructions: Match the above principles to the.
28 Views
View Answer
PricingJ - 1 Ex. 164 Rita Corporation produces commercial fertilizer spreaders. The following information is available for Rita's anticipated annual volume of 400,000 units. Per Unit  Total   Direct materials$32 Direct labor54 Variable manufacturing overhead72 Fixed manufacturing overhead$12,000,000 Variable selling and administrative expenses34 Fixed selling and administrative expenses7,200,000 The company has a desired ROI of 20%. It has invested assets of $120,000,000. Instructions Compute.
5 Views
View Answer
AT4-1 Achievement Test 4 PART IV — CASH BUDGET (11 points) The following estimated information is available for Advanced Motors for the month of October: Cash receipts from customers$71,200 Payments for inventory21,500 Payments for salaries 10,400 Receipt of interest on investments800 Cash payments of income taxes7,800 Cash payments of administrative expenses11,000 Dividends to be paid14,000 Capital expenditures8,000 Depreciation expense4,200 The cash.
9 Views
View Answer
AT2-1 Achievement Test 2 PART V — MATCHING (9 points) Instructions: Match the items below by entering the appropriate letter in the space provided. A.General journalH.Permanent accounts B.Trial balanceI.Revenue recognition principle C.Periodicity assumptionJ.Prepayments D.Accrual accountingK.Accrued expenses E.Cash basis accountingL.Adjusting entries F.Expense recognition principleM.Closing entries               G.LedgerN.Temporary accounts 1.Accounting basis in which companies record amounts in the periods in which the events.
10 Views
View Answer
AT2-1 Achievement Test 2 PART III — ADJUSTING ENTRIES (24 points) The ledger accounts given below, with an identification number for each, are used by Lowe’s Lawn Care. Instructions: Prepare appropriate adjusting entries for the year ended December 31, 2014, by replacing the appropriate identification number(s) in the debit and credit columns provided.
6 Views
View Answer
AT1-1 Achievement Test 1 PART V — BALANCE SHEET CLASSIFICATIONS (18 points) Instructions: Match the account titles given below with the appropriate balance sheet classification. An individual classification may be used more than once, or not at all. An account may also not appear in the balance sheet. A.Current AssetsE.Current Liabilities B.Long-term InvestmentsF.Long-term Liabilities C.Property, Plant,.
7 Views
View Answer
PricingJ - 1 Ex. 168 Forrest Painting Service has budgeted the following time and material for 2013: BUDGETED COSTS FOR 2013    TimeMaterial Charges Charges Painters' wages and benefits$  36,000 Service manager's salary and benefits$23,000 Office employee's salary and benefits12,0003,000 Cost of paint50,000 Overhead (supplies, utilities, etc.)    16,000    8,500 Total budgeted costs$64,000$84,500 Forrest budgets 4,000 hours of paint time in 2013 and.
7 Views
View Answer
PART IV — RATIOS (12 points) Sanders Enterprises reported the following information for 2014: Beginning inventory$ 32,000 Cost of goods sold404,000 Ending inventory45,000 Net income28,000 Net sales750,000 Operating expenses220,000 Sales revenue765,000 Instructions: Compute each of the following ratios: (1)Gross profit rate (2)Inventory turnover (3)Days in inventory (4)Profit margin .
12 Views
View Answer
PricingJ - 1 Ex. 173 Green Yard Company, a division of Lawn Supplies, Inc., produces lawn mowers. Green Yard sells lawn mowers to home improvement stores, as well as to Lawn Supplies, Inc. The following information is available for Green Yard's mowers: Fixed cost per unit$150 Variable cost per unit100 Selling price per unit375 Lawn Supplies,.
5 Views
View Answer
PART II — JOURNAL ENTRIES (30 points) The ledger accounts given below, with an identification number for each, are used by Tactical Supplies. The company uses a perpetual inventory system. Instructions: Prepare appropriate entries for the month of May by placing the appropriate identification number(s) in the debit and credit columns provided.
10 Views
View Answer
PricingJ - 1 111.The general formula for the minimum transfer price is:  minimum transfer price equals a.fixed cost + opportunity cost. b.external purchase price. c.total cost + opportunity cost. d.variable cost + opportunity cost. 112.Variable costs of units sold internally will always be a.lower than the variable costs of units sold externally. b.higher than the variable costs of.
26 Views
View Answer
AT1-1 Achievement Test 1 PART II—MATCHING: FINANCIAL STATEMENT ANALYSIS (8 points) Instructions: Match the terms given below with the definitions or descriptions that follow by placing the appropriate letter in the space provided. A.LiquidityF.Profitability B.Earnings per shareG.Dividends C.Debt to assets ratioH.Working capital D.Current ratioI.Solvency E.Free cash flowJ.   Periodicity ____              1.Measures the ability of an enterprise to survive over a.
8 Views
View Answer
AT5-1 Achievement Test 5 PART V — RATIO ANALYSIS (16 points) Jiffy Mart and Quick Shop are two companies of roughly the same size both running a chain of convenience stores. Each company depreciates its plant assets using the straight-line method. An investigation of their financial statements reveals the following information: Jiffy MartQuick Shop Net.
6 Views
View Answer
PricingJ - 1 BE  151 During the current year Greeve Corporation expects to produce 10,000 units and has budgeted the following: net income $300,000; variable costs $900,000; and fixed costs $350,000. It has invested assets of $1,750,000. The company's budgeted ROI was 20%. What was its budgeted markup percentage using a full-cost.
7 Views
View Answer
PricingJ - 1 Ex. 177 Peachtree Doors, Inc. is in the process of setting a target price on its newly designed patio door. Cost data relating to the door at a budgeted volume of 5,000 units is as follows: Per Unit   Total Direct materials$100 Direct labor170 Variable manufacturing overhead80 Fixed manufacturing overhead$750,000 Variable selling and administrative expenses25 Fixed selling.
14 Views
View Answer
PricingJ - 1 MATCHING               188.Match the items in the two columns below by entering the appropriate code letter in the space provided. A.Cost-plus pricingE.Outsourcing B.Market-based transfer priceF.Target selling price C.MarkupG.Time-and-material pricing D.Negotiated transfer priceH.Virtual companies ____1.Contracting with an external party to provide a good or service. ____2.An approach to cost-plus pricing that uses two pricing rates. ____3.Product's selling.
11 Views
View Answer
PricingJ - 1 BE  155 Freberg Company, a division of Dudge Cars, produces automotive batteries. Freberg sells the batteries to its customers for $92 per unit. The variable cost per unit is $42, and fixed costs per unit are $16. Top management of Dudge Cars would like Freberg to transfer 30,000 batteries.
6 Views
View Answer
AT1-1 Achievement Test 1 PART I — MULTIPLE CHOICE (42 points) Instructions: Designate the best answer for each of the following questions. ____              1.Which of the following has the advantage of enabling a business to raise funds most easily?               a.Entity               b.Sole proprietorship               c.Corporation               d.Partnership ____              2.Which of the following items will be reported on the.
36 Views
View Answer
AT2-1 Achievement Test 2 PART I — MULTIPLE CHOICE (33 points) Instructions: Designate the best answer for each of the following questions. ____              1.Which one of the following is true as it relates to the Accumulated Depreciation account?               a.It is a contra account.               b.It is offset against an asset account on the income statement.              .
17 Views
View Answer
AT5-1 Achievement Test 5 PART VI — LIABILITY PROBLEMS (15 points) Instructions: Complete the requirements specified for each of the following independent situations. 1.On January 1, 2014, Wicker World issued bonds with a face value of $200,000. The bonds carry a stated interest of 6% payable each January 1. Prepare the journal entry for.
6 Views
View Answer
PricingJ - 1 121.Assuming the Wood Division has available capacity of 5,000 units, the minimum transfer price it should accept is a.$7. b.$25. c.$32. d.$55. 122.Assuming the Wood Division does not have any available capacity, the minimum transfer price it should accept is a.$7. b.$25. c.$32. d.$55. Use the following information for questions 123 and 124. Management of the Catering Company would.
5 Views
View Answer
PricingJ - 1 Ex. 175 Pubworld is a textbook publishing company that has contracts with several different authors. It also operates a printing operation called Printpro. Both companies operate as separate profit centers. Printpro prints textbooks written by Pubworld authors, as well as books written by non-Pubworld authors. The printing operation bills.
7 Views
View Answer
AT6-1 Achievement Test 6 _              11.What do solvency ratios measure?               a.The level of full and transparent information provided to users of the financial statements               b.The profitability of a company               c.The ability of a company to survive over a long period of time               d.The ability of a company to pay its debts.
7 Views
View Answer
AT5-1 Achievement Test 5 PART I — MULTIPLE CHOICE (26 points) Instructions: Designate the best answer for each of the following questions. ____              1.Which of the following is included as part of property, plant, and equipment but does not decline in service potential?               a.Land on which a company warehouse is built               b.Fixed assets used.
21 Views
View Answer
AT6-1 Achievement Test 6 PART II — DIVIDENDS (6 points) PetSafe had 8,000 shares of 3%, $8 par value preferred stock and 50,000 shares of $0.50 par value common stock outstanding throughout 2014. Total dividends declared in 2014 were $8,000. The preferred stock is cumulative with no dividends paid during 2012 and.
9 Views
View Answer
AT5-1 Achievement Test 5 PART IV — INTANGIBLE ASSET TRANSACTIONS (9 points) Instructions: Complete the requirements specified for each of the following independent situations. 1.During 2013, Sunbolt Corporation incurred $120,000 of research and development costs to produce a solar cell for motorcycles. It then paid filing fees of $6,800 to register a patent on.
8 Views
View Answer
AT2-1 Achievement Test 2 PART IV — NORMAL BALANCES (10 points) Instructions: Place a "D" (Debit) or "C" (Credit) in the space provided to indicate whether the account has a normal debit balance (D) or normal credit balance (C). ____              1.Retained Earnings6.Common Stock ____              2.Equipment7.Painting Service Revenue ____              3.Depreciation Expense8.Accumulated Depreciation ____              4.Dividends9.Accounts Receivable ____              5.Unearned Service Revenue10.Prepaid.
7 Views
View Answer
AT2-1 Achievement Test 2 PART II — JOURNAL ENTRIES (24 points) The ledger accounts given below, with an identification number for each, are used by Quality Clean Depot. Instructions: Indicate the appropriate entries for the month of July by placing the appropriate identification number(s) in the debit and credit columns provided. Item 0 is.
13 Views
View Answer
AT5-1 Achievement Test 5 PART III — PLANT ASSETS: SHORT PROBLEMS (28 points) Instructions: Complete the requirements specified for each of the following independent situations. Jumpstart Deliveries acquired a truck at a cost of $64,000 on January 1, 2014. The truck is expected to have a salvage value of $8,000 at the end of.
9 Views
View Answer

Welcome Back!

ScholarOn has more then 20 Million answers, flashcards & more being added everyday!

or
Forgot?
Login
Don't have an account? Signup

Join ScholarOn

ScholarOn has more then 20 Million answers, flashcards & more being added everyday!

or
Signup
By registering, I agree to the Terms and Privacy Policies
Already have an account? Log in

Verify Your Email

Check your inbox & click on the link to activate your account.

Resend Email
Verification Mail Send Successfully. Please Check Your Email.

Forgot Password

Please enter your registered email to recieve the password reset link.

Send reset link
Already have an account? Log in
Did you know?

ScholarOn has more than 2 Million+ answers, textbook solutions & flashcards. Explore Now!

Let us boost your grade together!