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Study Resources (Accounting)

11) Calculate the cost of goods sold when beginning finished goods inventory equals $70,000, ending finished goods inventory $85,000, and cost of goods manufactured $600,000. A) $615,000 B) $445,000 C) $685,000 D) $585,000 12) What inventories are included in determining the cost of goods sold? A) Beginning and ending finished goods B) Beginning and ending raw materials C).
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46) Accounts receivable on January 1 was $30,000 and, at the end of the year it was $50,000. Net credit sales were $200,000. Accounts receivable turnover is: A) 2.5 times. B) 4 times. C) 5 times. D) 6.67 times. 47) If current assets were $90,000, merchandise inventory was $60,000, and current liabilities were $15,000, the.
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21) Sylvan Manufacturing applies overhead based on direct labor hours. At the beginning of the year, it estimated that overhead costs would be $75,000 and direct labor hours would be 10,000. The applied overhead rate per direct labor hour is: A) $7.50. B) $15.00. C) $0.1333. D) none of the above. 22) If the overhead.
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25.2   Learning Objective 25-2 1) What is the journal entry to record issuing supplies from the storeroom? A) Debit Overhead-Applied; credit Raw Materials Inventory B) Debit Overhead-Control; credit Supplies Inventory C) Debit Supplies Inventory; credit Overhead-Applied D) Debit Overhead-Applied; credit Supplies Inventory 2) What is the journal entry to record issuing raw materials from the storeroom? A).
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24.2   Learning Objective 24-2 1) The difference between a department's gross profit and its operating expenses is known as the: A) departmental operating margin. B) departmental operating cost. C) departmental operating income. D) departmental gross profit. 2) Indirect expenses are allocated to departments based on: A) decisions of the stockholders. B) directives from the board of directors. C) some.
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24.1   Learning Objective 24-1 1) A profit center is a unit in which the manager: A) has the responsibility for controlling costs, but not for directly generating revenue. B) is not responsible for controlling costs, but is responsible for generating revenue. C) is responsible for controlling costs and generating revenue. D) None of these answers.
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21) Why would it be advisable for a company to keep separate accounting records for various departments? 22) Prepare an income statement showing departmental contribution margin based on the following: Dept. XDept. YRent Expense Space (square feet)17,50035,000 Net Sales$60,000$ 40,000 Cost of Goods Sold18,00016,000 Rent Expense (allocated based on square feet)$2,700 23) Hawkeye Golf is considering dropping.
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Given the following accounts: [1]Expense accounts. [2]Accounts receivable [3]Finished goods inventory. [4]Work in process inventory. [5]Raw materials inventory. [6]Factory supplies inventory. [7]Overhead applied [8]Accumulated depreciation factory equipment [9]Accounts payable. [10]Payroll [11]Utilities payable [12]Sales. [13]Raw materials purchases. [14]Overhead-control. [15]Cost of goods sold. Indicate the account(s) to be debited and credited to record the following transactions. 42) Purchased raw materials on account. Debit ________ & ________ & ________ Credit ________.
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23.3   Learning Objective 23-3 1) What is the internal control advantage of using the net method of accounting for merchandise purchases? A) It highlights the inefficiency of losing purchase discounts. B) It guarantees that all purchase discounts will be taken. C) It automatically increases a firm's cash balance. D) It results in a higher quality.
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22.1   Learning Objective 22-1 1) A statement comparing data from two or more consecutive periods is called a: A) comparative balance sheet. B) comparative income statement. C) common-size statement. D) both A and B. 2) In a comparative balance sheet, the ending Cash for 2012 was $315,000 and is $270,000 for 2013. The net increase or.
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27) Meranda Flower Corporation needs to develop a trend analysis for its sales and gross profit for the past three years to make decisions for the future. Compute the trend percentages with the information below and place your answers in the spaces provided. Year 3Year 2Year 1 Net sales$1,600$1,100$ 800 Gross profit750400250 Net sales.
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11) Sales minus cost of goods sold yields: A) operating expenses. B) gross profit. C) income before taxes. D) net income. A) a Holiday Inn. B) the restaurant in a motel. C) the administrative department in a motel. D) the catering department in a motel. 13) Gross profit by department appears on the: A) balance sheet. B) statement of retained earnings. C).
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61) After paying a voucher, the voucher document is marked paid. 62) Items are listed in the voucher register in the order liabilities are incurred. 63) Unpaid vouchers are arranged by the due date in a tickler file. 64) A schedule of vouchers payable is prepared from the check register. 65) When merchandise is.
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31) Which of the following sequences of events is in the correct order for a voucher system? A) Recording, preparing, posting, and paying the voucher B) Posting, preparing, paying, and recording the voucher C) Preparing, paying, posting, and recording the voucher D) None of the above is the correct order. 32) Important control features provided.
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25.3   Learning Objective 25-3 1) The purchase of direct materials was recorded as the purchase of office supplies. This error will cause: A) the cost of goods manufactured to be overstated. B) the cost of goods sold to be overstated. C) the net income to be overstated. D) None of these are correct. 2) The direct.
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31) Column 1 Column 2 Column 3 Column 4 Cash in bank 32) Column 1 Column 2 Column 3 Column 4 Petty cash 33) Column 1 Column 2 Column 3 Column 4 Supplies 34) Column 1 Column 2 Column 3 Column 4 Equipment 35) Column 1 Column 2 Column 3 Column 4 Notes payable 36) Column 1 Column 2 Column 3 Column 4 Vouchers payable 37) Column 1 Column 2 Column 3 Column 4 FICA payable 38) Column 1 Column 2 Column 3 Column 4 Wages payable 39) Column 1 Column.
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51) Electricity for the stove in a restaurant.________ 52) Paint for the restaurant dining room.________ 54) Wages paid to the restaurant wait staff.________ 55) Electricity for the general lighting in a store._______ 56) Paint sold by the hobby department.________ 57) General employee insurance.________ 58) Rent paid for the freezers in the frozen foods department of a.
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41) The following data are available for Jackson Company. Annual estimated manufacturing overhead$ 70,000 Actual manufacturing overhead in May16,200 Annual estimated direct labor hours25,000 Actual direct labor hours in May5,700 Required: a. Compute the predetermined rate based on direct labor hours. b. Prepare the journal entry to record the applied overhead for the month of May. .
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23.1   Learning Objective 23-1 1) A voucher system is designed to control a company's: A) cash receipts. B) cash payments. C) stock sales. D) internal finances. 2) A voucher is made for every: A) cash receipt. B) cash payment. C) accounts payable transaction. D) accounts receivable transaction. 3) A voucher register is: A) a replacement for the purchases journal. B) a special journal.
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41) Finished goods are listed on the statement of cost of goods manufactured. 42) All expenses are listed on the income statement of a manufacturer. 43) Classify each of the following as raw materials, direct labor, or overhead: Item Raw Material Direct Labor Overhead Steel in making of cars Salary of a supervisor Wages of an employee producing desks Lease.
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71) Emerald Corporation uses a voucher system and completed the following transactions: Dec. 31 Prepared voucher #422 to replenish the petty cash fund based on the following receipts:                             supplies $47, postage $48, and cash short $2. 31Issued check #1003 in payment of voucher #422. Required: Prepare general journal entries to record.
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11) If the cosmetic department in the store measures 10,000 square feet and the total building cost is $30,000 for a 40,000 square foot building, the cost that would be allocated to the cosmetic department would be: A) $30,000. B) $10,000. C) $22,500. D) $7,500. 12) If the music department in a department store is.
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76) A vertical analysis of an income statement automatically provides the return on sales ratio and the gross profit ratio. 77) From the following information of Carlson's Restoration Corporation, compute: a. ________ Asset turnover for Year 2. b. ________ Inventory turnover for Year 2. c. ________ Accounts receivable turnover for Year 2. Year 2Year 1 Net.
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31) Finished goods inventory includes the total costs of manufacturing a product. 32) A cost of goods manufactured statement should be prepared before the income statement has been prepared. 33) The balance sheet contains all three manufacturing inventories. 34) The steps of the accounting cycle for a manufacturing company are different from those.
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11) Brooke's Company purchased $1,500 of merchandise with terms of 2/10, n/30 and paid the invoice within the discount period. If Brooke's uses the net method of recording merchandise purchases, the $30 purchases discount is recorded in: A) the voucher register. B) the check register. C) the general journal. D) None of these answers.
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38) Indicate the effect that each of the following transactions has on the cash balance. Use (I) for increase, (D) for decrease, and (N) for no change. a) ________ Increase in inventory b) ________ Sale of common stock for cash c) ________ Payment of dividends d) ________ Depreciation expense for the period e) ________ Payment.
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For each of the following items, indicate by placing an X in the appropriate column whether it is a measure of: (column 1) liquidity, (column 2) asset management, (column 3) debt, or (column 4) profitability. 80) Liquidity Asset Management Debt Profitability Rate of return on total assets 81) Liquidity Asset Management Debt Profitability Rate of return on common stockholders' equity 82).
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11) The Overhead-Control account is used for the: A) application of overhead to production and it has a debit balance. B) accumulation of all actual overhead costs and it has a credit balance. C) application of overhead to production and it has a credit balance. D) accumulation of all actual overhead costs and it.
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25.1   Learning Objective 25-1 1) Nails, depreciation, and foreman salaries are examples of: A) raw materials. B) direct labor. C) manufacturing overhead. D) none of the above. 2) Lumber used in construction of a building is part of: A) raw material costs. B) labor costs. C) manufacturing overhead. D) None of these answers are correct. 3) Direct labor includes the wages.
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31) Departmental accounting requires: A) measuring departmental gross profit. B) allocating direct costs to departments. C) allocating indirect costs to departments. D) None of these answers is correct. 32) Which of the following expenses is the most difficult to allocate to departments? A) Cost of goods sold B) Use of general supplies by everyone C) Salaries and wages D).
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51) Vouchers are recorded in the voucher register as they are paid. 52) A schedule of vouchers payable can be prepared from the tickler file at the end of the month. 53) In a voucher system, the source documents include the invoice, receiving report, purchase order, and purchase requisition. 54) To maintain good.
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Given the following accounts: [1]Cash in bank [2]Petty cash [3]Supplies [4]Equipment [5]Notes payable [6]Vouchers payable [7]FICA payable [8]Wages payable [9]Purchases [10]Purchase discounts [11]Discounts lost [12]Repairs exp [13]Interest expense [14]Delivery expense Indicate the account(s) to be debited and credited to record the following transactions. 20) Prepared and recorded voucher #422 for the purchase of merchandise (gross method) of $5,000 with credit terms of 2/10, n/30. Debit ________ &.
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11) Supporting documents for a voucher system are: A) filed in a tickler file. B) attached to the invoice. C) attached to the purchase order. D) attached to the voucher. 12) When a purchase is made, the business will: A) credit Vouchers Payable. B) enter a voucher in the voucher register. C) debit Purchases. D) All of the above. 13).
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41) A common way to apportion janitorial expense is to base it on gross sales. 42) Indirect expenses may be allocated to departments based on the cost of goods sold in each department. 44) Indirect expenses are the same across departments and industries. 45) Sports Galore is trying to allocate its building's depreciation.
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21) Which of the following business documents would not originate with the purchasing company? A) Purchase requisition B) Check for payment C) Sales invoice D) Receiving report 22) The company receiving a purchase order prepares a: A) purchase requisition. B) voucher. C) bill of lading. D) sales invoice. 23) On the balance sheet, Vouchers Payable would be: A) a special liability.
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41) A voucher register could contain which of the following columns? A) Debit to Vouchers Payable B) Credit to Purchases C) Debit or credit to sundry accounts D) A credit to an expense account 42) Martin Corporation used the gross method of recording purchases. A purchase of $5,600, 3/10, n30 would be recorded as: A) debit.
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61) Net income before taxes - preferred dividends divided by common stockholders' equity is the calculation for: A) earnings per share. B) rate of return on stockholders' equity. C) rate of return on total assets. D) return on sales. 62) The net income for the year ended was $300,000. Equity for common stockholders' at the.
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22.3   Learning Objective 22-3 1) Liquidity ratios measure: A) how effectively a company is using its equity. B) how effectively a company is using its liabilities. C) a company's ability to pay shareholders. D) a company's ability to pay off short-term debts. 2) Debt management ratios measure: A) how effectively a company is using its cash. B) how.
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31) Work-in-Process is credited and Payroll is debited when direct labor is charged to production. 32) Finished Goods is debited when products are sold and credited when the products are transferred from Work-in-Process. 33) Cost of Goods Sold is debited after items have been sold from the finished goods inventory. 34) Overhead may.
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24.3   Learning Objective 24-3 1) When preparing an income statement showing departmental contribution margin: A) indirect expenses are combined with direct expenses. B) indirect departmental expenses are added to contribution margin. C) direct expenses are subtracted from contribution margin on sales. D) None of these answers are correct. 2) Compute the contribution margin for the video.
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11) When a department showing a loss is eliminated, other departments will always achieve a greater contribution margin. 12) Direct expenses and indirect expenses are separated in determining contribution margin. 13) Direct expenses are assigned to departments based on the actual expenses incurred. 14) Eliminating one department may increase the sales of another.
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