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1) A manager in a cost center also has responsibility and authority over the revenues and the costs. 2) When a business receives a bill from the utility company, no entry should be made until the invoice is paid. Answer: […]

1) Debits will increase Unearned Revenues and Revenues. 2) The par value of common stock must always be equal to its market value on the date the stock is issued. Answer: FALSE 3) The process by which management plans, evaluates, […]

1) The minimum amount of desired divisional income from operations is set by top management by establishing a minimum rate of return considered acceptable for invested assets. 2) A business that requires all cash payments be made by check can […]

1) Multiple production department factory overhead rates are less accurate and less costly than are plantwide factory overhead rates. 2) An account receivable is a claim against a customer arising from a sale on account. Answer: TRUE 3) Goods that […]

1) When a large quantity of merchandise is purchased, a reduction allowed on the sale price is called a trade discount. 2) When an accounts payable account is paid in cash, company expenses increase. Answer: FALSE 3) Investment in Bonds […]

1) The declaration and issuance of a stock dividend does not affect the total amount of a corporation’s assets, liabilities, or stockholders’ equity. 2) Depreciation on factory plant and equipment is an example of factory overhead cost. Answer: TRUE 3) […]

1) Manufacturers use labor, plant, and equipment to convert direct materials into finished products. 2) Purchasing supplies on account increases liabilities and decreases equity. Answer: FALSE 3) Make or buy options often arise when a manufacturer has excess productive capacity […]

1) The trial balance prepared after all the closing entries have been posted is called a pre-closing trial balance. 2) The accounting rate of return is a measure of profitability computed by dividing the average annual cash flows from an […]

1) A physical inventory should be taken at the end of every month. 2) The process by which management allocates available investment funds among competing capital investment proposals is termed capital rationing. Answer: TRUE 3) A voucher system is an […]

1) An unfavorable cost variance occurs when budgeted cost at actual volumes exceeds actual cost. 2) Vertical analysis compares each item in a financial statement with a total amount from the same statement. Answer: TRUE 3) Indirect labor and indirect […]

1) The interest on a 6%, 60-day note for $5,000 is $300. 2) Factory overhead is applied to production using a predetermined overhead rate. Answer: TRUE 3) The payback method can be used only when net cash inflows are the […]

1) Both callable and non-callable bonds can be purchased by the issuing corporation in the open market. 2) A post-closing trial balance contains only asset and liability accounts. Answer: TRUE 3) In a perpetual inventory system, merchandise returned to vendors […]

1) The control environment in an internal control structure is the attitude and awareness of internal control by all employees. 2) Consulting the persons affected by a budget when it is prepared can provide an effective means of motivation and […]

1) If the unit selling price is $40, the volume of sales is $3,000,000, sales at the break-even point amount to $2,500,000, and the maximum possible sales are $3,300,000, the margin of safety is 11,500 units. 2) The product cost […]

1) The debit to factory overhead for the cost of indirect materials is obtained from the summary of the materials requisitions. 2) The negotiated price approach allows the managers of decentralized units to agree among themselves as to the transfer […]

1) The market rate of interest is affected by a variety of factors, including investors’ assessment of current economic conditions. 2) A primary difference between the direct write-off and allowance method is whether or not bad debts is based on […]

1) An extraordinary loss of $300,000 that results in income tax savings of $90,000 should be reported as an extraordinary loss (net of tax) of $210,000 on the income statement. 2) The price of a bond is equal to the […]

1) Conversion cost is the combination of direct materials cost and factory overhead cost. 2) An equity investment in less than 20% of another companys stock is accounted for using the cost method. Answer: TRUE 3) A report analyzing the […]

1) Sales to customers who use bank credit cards, such as MasterCard and VISA, are generally treated as credit sales. 2) In contribution margin analysis, the effect of a difference in unit sales price or unit cost on the number […]

1) Cash, Accounts Payable, and Capital Stock are real accounts and do not get closed at the end of the period. 2) One negative effect of carrying too much inventory is risk that customers will change their buying habits. Answer: […]

1) The direct labor and overhead costs of providing services to clients are accumulated in a work-in-process account. 2) Once journal entries are posted to accounts, each account will show a new balance after each entry. Answer: TRUE 3) Changes […]

1) The normal balance of the dividends account is a debit. 2) In contribution margin analysis, the effect of a difference in the number of units sold, assuming no change in unit sales price or cost, is termed the unit […]

1) Product costing consists of only direct materials and direct labor. 2) Just-in-Time (JIT) manufacturing is also called make-to-stock manufacturing. Answer: FALSE 3) Trade receivables occur when two companies trade or exchange notes receivables. Answer: FALSE 4) An intangible asset […]

1) During periods of decreasing costs the use of the LIFO method of costing inventory will result in a lower amount of net income than would result from the use of the FIFO method. 2) A large retained earnings account […]

1) Merchandise is sold for $3,600, terms FOB destination, 2/10, n/30, with prepaid freight costs of $150. If $500 of the merchandise is returned prior to payment and the invoice is paid within the discount period, the amount of the […]

1) Cost-volume-profit analysis can be presented in both equation form and graphic form. 2) The average cost method will always yield results between FIFO and LIFO. Answer: TRUE 3) An income statement is a summary of the revenues and expenses […]

1) The profit margin component of rate of return on investment analysis focuses on profitability by indicating the rate of profit earned on each sales dollar. 2) For paying their payroll, most employers use payroll checks drawn on a special […]

1) Assuming no other changes, operating income will be the same under both the variable and absorption costing methods when the number of units manufactured equals the number of units sold. 2) A rental cost of $20,000 plus $.70 per […]

1) Revising depreciation estimates does affect the amounts of depreciation expense recorded in past periods. 2) Both process and job order cost systems maintain perpetual inventory accounts with subsidiary ledgers. Answer: TRUE 3) The Financial Accounting Standards Board (FASB) is […]

1) After net income or loss is entered on the work sheet, the debit column total must equal the credit column total of the Balance Sheet columns. 2) If the adjustment for accrued salaries at the end of the period […]

1) Management may use both absorption and variable costing methods for analyzing a particular product. 2) The product cost concept includes all manufacturing costs plus selling and administrative expenses in the cost amount to which the markup is added to […]

1) During periods of rapidly rising costs, the use of the LIFO method results in illusory or inventory profits. 2) At the end of a period (before adjustment), Allowance for Doubtful Accounts has a debit balance of $2,000. The Accounts […]

1) The total interest expense over the entire life of a bond is equal to the sum of the interest payments plus the total discount or minus the total premium related to the bond. 2) The difference between the balance […]

1) It is necessary for a company to use the same depreciation method for all of its depreciable assets. 2) The ratio of sales to invested assets is termed the investment turnover component of the rate of return on investment. […]

1) During periods of increasing costs, the use of the FIFO method of costing inventory will result in a greater amount of net income than would result from the use of the LIFO cost method. 2) The main objective of […]

1) The form of the balance sheet in which assets, liabilities, and owner’s equity are presented in a downward sequence is called the report form. 2) The specific identification inventory method should be used when the inventory consists of identical, […]

1) Control is the process of monitoring operating results and comparing actual results with the expected results. 2) For short-run production planning, information in the absorption costing format is more useful to management than is information in the variable costing […]

1) When a corporation owns less than 20% of the stock of another company, dividends received are not treated as income. 2) When using the FIFO inventory costing method, the most recent costs are assigned to the cost of goods […]

1) Vertical analysis refers to comparing the financial statements of a single company for several years. 2) Liabilities are debts owed by the business entity. Answer: TRUE 3) In most business organizations, the chief accountant is called the treasurer. Answer: […]

1) The cost of new equipment is called a revenue expenditure because it will help generate revenues in the future. 2) Earnings per share amounts are only required to be presented for income from continuing operations and net income on […]

1) For a current liability to exist, the following two tests must be met. The liability must be due usually within a year and must be paid out of current assets. 2) The number of days’ sales in receivables is […]

1) A work sheet heading is dated for a period of time. 2) Factors which reflect the ability of a business to pay its debts and earn a reasonable amount of income are referred to as solvency and profitability. Answer: […]

1) The cost of production report reports the cost of the goods sold. 2) Unusual items affecting the current periods income statement consist of changes in accounting principles and discontinued operations. Answer: FALSE 3) A sale of $750 on account, […]

1) Past performance is the best overall basis for evaluating current performance and assessing the need for corrective action. 2) Supervisor salaries and indirect factory wages would normally appear in the direct labor cost budget. Answer: FALSE 3) The difference […]

1) If the profit margin for a division is 8% and the investment turnover is 1.20, the rate of return on investment is 9.6%. 2) Unearned revenues that will be earned in a relatively short period of time are listed […]

D-1 APPENDIX C INTERNATIONAL FINANCIAL REPORTING STANDARDS DISCUSSION QUESTIONS 1. In recent years, the removal of trade barriers and the growth in cross-border equity and debt issu- ances have led to a dramatic increase in interna– tional commerce. As a […]

APPENDIX D REVERSING ENTRIES Ex. D–1 a. (1) Sales Salaries Expense……………………………………… 7,050 Salaries Payable…………………………………………… 7,050 Accrued salaries ($11,750 ÷ 5 days = $2,350; $2,350 × 3 days). (2) Accounts Receivable ………………………………………… 51,300 Fees Earned…………………………………………………. 51,300 Accrued fees earned. b. (1) […]

APPENDIX E Special Journals and Subsidiary Ledgers Prob. E–4 1., 2., and 3. Page 1 16 94,920 4,920 PURCHASES JOURNAL Field Supplies Dr. Account Credited Hydro Supply Co. Post. Ref. 2014 Date June Accounts Payable Cr. Office Supplies Dr. Other […]

Ex. E–1 Ex. E–2 a. Cash receipts journal f. Cash receipts journal b. General journal g. General journal c. Cash receipts journal h. Cash receipts journal d. General journal (not a revenue transaction) i. Cash receipts journal e. Cash receipts […]

CHAPTER 5 Accounting for Merchandising Businesses Appendix Prob. 5–9B (Concluded) 2. Apr. 2 Purchases 32,000 Freight In 330 Accounts Payable—Swan Company 32,330 8 Purchases 49,500 5-61 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, […]

CHAPTER 5 Accounting for Merchandising Businesses Appendix Ex. 5–39 Jan. 2 Merchandise Inventory 18,200 Accounts Payable 18,200 5 Merchandise Inventory 190 5-21 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a […]

CHAPTER 2 Analyzing Transactions Prob. 2–2A 1. (a) Cash 23,500 Capital Stock 23,500 (b) Rent Expense 4,000 Cash 4,000 2-21 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible […]

1. Merchandising businesses acquire merchandise for resale to customers. It is the selling of 2. Yes. Gross profit is the excess of (net) sales over cost of merchandise sold. A net loss arises when operating expenses exceed gross profit. Therefore, […]

CHAPTER 3 The Adjusting Process Prob. 3–6A 1. a. Supplies Expense Supplies 2,750 Supplies used. 2. Total Net Total Income Assets = + Equity Reported amounts $120,000 $750,000 $450,000 Corrections: Adjustment (a) –2,750 –2,750 –2,750 Adjustment (b) +23,700 +23,700 +23,700 […]

2. The terms debit and credit may signify either an increase or a decrease, depending upon the nature of the account. For example, debits signify an increase in asset and expense accounts but a decrease in liability, capital stock, retained […]

Problem 1-3B Score: Key Code: Instructions Answers are entered in the cells with gray backgrounds. Cells with non-gray backgrounds are protected and cannot be edited. An asterisk (*) will appear to the right of an incorrect entry. 1. Expenses: Total […]

Score: Key Code: An asterisk (*) will appear to the right of an incorrect entry. Fees earned Expenses: Total expenses Exercise 1-19 Name: Section: EXPLORATION SERVICES Income Statement Answers are entered in the cells with gray backgrounds. Cells with non-gray […]

CHAPTER 4 Completing the Accounting Cycle Continuing Problem (Continued) Account No. 11 Post. Item Ref. Debit Credit Debit Credit 2014 July 1 Balance 93,920 14 1 1,200 10,420 16 2 2,000 12,420 21 2 620 11,800 22 2 800 11,000 […]

CHAPTER 9 Fixed Assets and Intangible Assets Prob. 9–4A 1. Depreciation Book Value, Year Expense End of Year a. 1…………………………………………… $142,000 $658,000 *[($800,000 – $90,000) ÷ 5] b. 1 [$800,000 × (1/5) × 2]…………… … $320,000 $480,000 2 [$480,000 × […]

CHAPTER 4 Completing the Accounting Cycle Prob. 4–4B (Continued) Current assets: Current liabilities: Cash $13,100 Accounts payable $ 4,500 RECESSIVE INTERIORS Balance Sheet January 31, 2014 Assets Liabilities 4-81 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, […]

CHAPTER 2 Analyzing Transactions Continuing Problem (Continued) 2. and 3. Page 2 Post. Ref. Debit Credit 2014 July 16 Cash 11 2,000 Fees Earned 41 2,000 27 Utilities Expense 53 915 Cash 11 915 28 Wages Expense 50 1,200 Cash […]

Score: Key Code: An asterisk (*) will appear to the right of an incorrect entry. a. Assets Liabilities Stockholders’ Equity Total stockholder’s equity Total liabilities and Total assets stockholders‘ equity Assets Liabilities Stockholders’ Equity Total stockholder’s equity Total liabilities and […]

Score: Key Code: An asterisk (*) will appear next to or below an incorrect entry only in the outlined cells. Essay answers will not be graded. a. Retained earnings, November 1, 2014 Retained earnings, November 30, 2014 b. Exercise 1-18 […]

CHAPTER 2 Analyzing Transactions Prob. 2–2B (Concluded) 3. Debit Credit Balances Balances Cash 20,150 4. a. $13,300 b. $8,750 ($3,000 + $2,800 + $1,500 + $1,050 + $400) c. $4,550 ($13,300 – $8,750) 5. $2,750, which is the excess of […]

1. The receiving report should be reconciled to the initial purchase order and the vendor’s invoice b efore recording or paying for inventory purchases. This procedure will verify that the inventory 2. A physical inventory should be taken periodically to […]

CHAPTER 4 Completing the Accounting Cycle Appendix Ex. 4–26 (Concluded) Current assets: Current liabilities: Cash $ 12 Accounts payable $ 36 ALERT SECURITY SERVICES CO. Balance Sheet October 31, 2014 Assets Liabilities 4-21 © 2014 Cengage Learning. All Rights Reserved. […]

MORNIN’ JOE INTERNATIONAL DISCUSSION QUESTIONS 1. U.S. GAAP Term IFRS International Term Statement of comprehensive income* Statement of comprehensive income Balance sheet Statement of financial position Interest expense Finance costs Net income Profit for the year Trading investments Financial assets […]

CHAPTER 1 Introduction to Accounting and Business Prob. 1–3A (Concluded) 4. (Optional) Cash flows from operating activities: Cash received from customers $110,000 RELIANCE FINANCIAL SERVICES Statement of Cash Flows For the Month Ended July 31, 2014 1-21 © 2014 Cengage […]

Problem 1-2A Score: Key Code: Instructions Answers are entered in the cells with gray backgrounds. Cells with non-gray backgrounds are protected and cannot be edited. An asterisk (*) will appear to the right of an incorrect entry. 1. Expenses: Total […]

CHAPTER 1 Introduction to Accounting and Business Prob. 1–5B (Continued) 2. = + +++ =+ Capital Stock +– Bal. 21,000 80,000 11,000 85,000 31,500 71,000 0 (d) + 72,000 Bal. 21,000 152,000 11,000 85,000 31,500 71,000 0 (e) – 20,000 […]

Problem 1-3A Score: Key Code: Instructions Answers are entered in the cells with gray backgrounds. Cells with non-gray backgrounds are protected and cannot be edited. An asterisk (*) will appear to the right of an incorrect entry. 1. Expenses: Total […]

CHAPTER 5 Accounting for Merchandising Businesses Appendix Prob. 5–10A 1. Periodic inventory system. Wyman Company uses a periodic inventory 2. See page 5-42. 5-41 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted […]

Score: Key Code: Enter the appropriate amounts/formulas in the answer cells, or select from the drop-down list. In part 2, place a plus sign or minus sign in the small box beside the amount. Row (a) has been completed as […]

WRD, 25e Page 1 of 7 Excel Templates U Us si in ng g t th he e E Ex xc ce el l T Te em mp pl la at te e G Gr ra ad di in ng […]

CHAPTER 4 Completing the Accounting Cycle Prob. 4–1B (Continued) 3. Current assets: Current liabilities: Cash $ 5,100 Accounts payable $ 9,750 LAST CHANCE COMPANY Balance Sheet June 30, 2014 Assets Liabilities 4-61 © 2014 Cengage Learning. All Rights Reserved. May […]

Score: Key Code: Enter the appropriate amounts/formulas in the answer cells, or select from the drop-down list. In part 2, place a plus sign or minus sign in the small box beside the amount. Row (a) has been completed as […]

CHAPTER 5 Accounting for Merchandising Businesses Comp. Problem 2 (Continued) 3. Debit Credit Capital Stock 100,000 Retained Earnings 585,300 Dividends 135,000 Sales 5,532,350 Sales Returns and Allowances 113,700 Sales Discounts 61,600 Cost of Merchandise Sold 3,000,200 Sales Salaries Expense 720,800 […]

CHAPTER 8 Receivables Ex. 8–28 a. and b. Net sales……………………… … c. The accounts receivable turnover indicates an increase in the efficiency of collecting accounts receivable by increasing from 30.7 to 37.3, a favorable trend. The days’ sales in receivables […]

1. The end-of-period spreadsheet illustrates the flow of accounting information from the unadjusted 2. a. Current assets are composed of cash and other assets that may reasonably be expected to be realized in cash or sold or used up, usually […]

CHAPTER 8 Receivables Prob. 8–2B 1. Customer Arcade Beauty 2. and 3. Not Past Over Customer Balance Due 1–30 31–60 61–90 91–120 120 ABC Beauty 15,000 15,000 Angel Wigs 8,000 8,000 Zodiac Beauty 3,000 3,000 Subtotals 875,000 415,000 210,000 112,000 […]

CHAPTER 6 Inventories Prob. 6–4B 1. First-In, First-Out Method Merchandise inventory, June 30, 2014…………………………………… … $ 32,864 Cost of merchandise sold………………………………………..………… … 310,776 2. Last-In, First-Out Method Merchandise inventory, June 30, 2014…………………………………… … $ 31,240 Cost of merchandise sold…………………………………….……………… 312,400 […]

Problem 1-2B Score: Key Code: Instructions Answers are entered in the cells with gray backgrounds. Cells with non-gray backgrounds are protected and cannot be edited. An asterisk (*) will appear to the right of an incorrect entry. 1. Expenses: Total […]

CHAPTER 7 Sarbanes-Oxley, Internal Control, and Cash Ex. 7–28 a. Year 3: $5,304.7 per month ($63,656 ÷ 12) c. Since Year 1, Allos Therapeutics monthly cash expenses have increased from $3,570.8 in Year 1 to $5,304.7 in Year 3. The […]

CHAPTER 6 Inventories Prob. 6–1A (Concluded) 2. Accounts Receivable 483,800 Sales 483,800 3. $193,350 ($483,800 – $290,450) 4. $26,950 ($8,950 + $18,000) 5. Since the prices rose from $30 for the June 1 inventory to $36 for the purchase on […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. 1. Social Federal U.S. Sales Office Total Security Medicare Income Savings Net Ck. Salaries Salaries Name Hours Regular […]

CHAPTER 10 Current Liabilities and Payroll Prob. 10–3A 1. Gross Federal Income Social Security Medicare Earnings Tax Withheld Tax Withheld Tax Withheld Arnett……… … $ 8,250.00 $ 1,512.00 $ 495.00 $ 123.75 2. a. Social security tax paid by employer………………………………… […]

1. No. A discounted note payable has no stated interest rate, but provides interest by discounting the 2. a. Employee’s federal income taxes, social security, and Medicare b. Employees Federal Income Tax Payable, Social Security Tax Payable, and Medicare Tax […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Gross Federal Income Social Security Medicare Employee Earnings Tax Withheld Tax Withheld Tax Withheld Addai Kasay McGahee Moss Stewart Tolbert Wells Totals 2. a. Social security tax […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. 1. Social Federal U.S. Sales Office Total Security Medicare Income Savings Net Ck. Salaries Salaries Name Hours Regular […]

1. No. Common stock with a higher par is not necessarily a better investment than common 2. The broker is not correct. Corporations are not legally liable to pay dividends until the dividends are declared. If the company that issued […]

CHAPTER 11 Corporations: Organization, Stock Transactions, and Dividends Ex. 11–25 a. OfficeMax: =Earnings per Share Net Income – Preferred Dividends Avg. Number of Common Shares Outstanding 11-21 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or […]

[Key code here] An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. 1. Total Year Dividends Total Per Share Total Per Share 2009 2010 2011 2012 2013 […]

[Key code here] An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. 1. Total Year Dividends Total Per Share Total Per Share 2009 2010 2011 2012 2013 […]

[Key code here] An asterisk (*) will appear to the right of an incorrect entry. In T accounts, only final balances will be graded. Enter a zero for the final balance if appropriate. 1., 2. Jan. 1 Bal. Jan. 1 […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. Common Pd.-In Cap. Stock in Excess Treasury Retained $40 par of Par Stock Earnings Total Balance, Jan. 1, […]

1. and 2. Jan. 1 Bal. 3,100,000 Apr. 13 1,000,000 July 16 123,000 Dec. 31 Bal. 4,223,000 Jan. 1 Bal. 1,240,000 Apr. 13 600,000 June 14 61,500 Dec. 31 Bal. 1,901,500 Dec. 31 248,068 Jan. 1 Bal. 4,875,000 Dec. 31 […]

[Key code here] An asterisk (*) will appear to the right of an incorrect entry. In T accounts, only final balances will be graded. Enter a zero for the final balance if appropriate. 1., 2. Jan. 1 Bal. Jan. 1 […]

[Key code here] An asterisk (*) will appear to the right of an incorrect entry. 1. 2014 July 1 Oct. 1 Dec. 31 Dec. 31 Dec. 31 Dec. 31 2015 June 30 Sept. 30 Dec. 31 Dec. 31 Dec. 31 […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. Plan 1 Plan 2 Plan 3 Earnings before bond interest […]

[Key code here] An asterisk (*) will appear to the right of an incorrect entry. 1. 2014 July 1 Oct. 1 Dec. 31 Dec. 31 Dec. 31 Dec. 31 2015 June 30 Sept. 30 Dec. 31 Dec. 31 Dec. 31 […]

An asterisk (*) will appear to the right of an incorrect entry. a. b. c. Earnings before bond interest and income tax 15,000,000$ 17,500,000$ 20,000,000$ Bond interest Balance Income tax Net income Dividends on preferred stock Earnings available for common […]

CHAPTER 12 Long-Term Liabilities: Bonds and Notes Prob. 12–1A 1. Plan 1 Plan 2 Plan 3 Earnings before interest and income tax… … $2,100,000 $2,100,000 $2,100,000 2. Plan 1 Plan 2 Plan 3 Earnings before interest and income tax… … […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. Plan 1 Plan 2 Plan 3 Earnings before bond interest […]

2. a. Bonds that may be exchanged for other securities under specified conditions. b. The issuing corporation reserves the right to redeem the bonds before the maturity date. c. Bonds issued on the basis of the general credit of the […]

[Key code here] An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. 2014 Feb. 14 April 1 June 1 June 27 Dec. 31 Fair Value Cost (Dec 31, 2014) […]

[Key code here] An asterisk (*) will appear to the right of an incorrect entry. a. 2014 Jan. 1 July 2 Dec. 31 b. Initial acquisition cost Equity earnings for 2014 Cash dividends received Investment in Hi Energy Co. stock […]

An asterisk (*) will appear to the right of an incorrect entry. For items a – c and h, complete the table below to determine the amounts. Enter items d – g and i as formulas. a. Available-for-sale investments (at […]

An asterisk (*) will appear to the right of an incorrect entry. For items a – c and h, complete the table below to determine the amounts. Enter items d – g and i as formulas. a. Available-for-sale investments at […]

CHAPTER 13 Investments and Fair Value Accounting Prob. 13–3B 1. 18 Investments—Malmo Inc.* 360,000 Cash 360,000 *9,000 shares × $40 per share 2014 Jan. 13-36 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or […]

CHAPTER 13 Investments and Fair Value Accounting Ex. 13–25 Ex. 13–26 a. Year 1: Dividend Yield = $0.52 ÷ $30.48 = 1.71% Year 2: Dividend Yield = $0.52 ÷ $27.91 = 1.86% b. Dividends per share remained constant from Year […]

[Key code here] An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. 2014 Jan. 18 July 22 Oct. 5 Dec. 18 Dec. 31 2015 Jan. 25 July 16 Dec. […]

[Key code here] An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. 2014 Feb. 1 Mar. 18 Sept. 12 Oct. 28 Dec. 31 2015 Jan. 23 Mar. 16 Sept. […]

1. A company may temporarily have excess cash that is not needed for use in its current operations. Instead of letting excess cash remain idle in a checking account, most companies invest their excess cash in temporary investments. The primary […]

[Key code here] An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. 2014 Mar. 14 April 24 June 1 June 30 Dec. 31 Fair Value Cost (Dec 31, 2014) […]

[Key code here] An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. a. 2014 Dec. 31 Fair Value Cost (Dec 31, 2014) Dust Devil, Inc. Gale Co. Whirlwind Co. Total […]

[Key code here] An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. a. 2014 Dec. 31 Fair Value Cost (Dec 31, 2014) Arden Enterprises, Inc. French Broad Industries, Inc. Pisgah […]

CHAPTER 14 Statement of Cash Flows Prob. 14–2B (Concluded) Balance Balance Account Title Dec. 31, 2013 Dec. 31, 2014 Operating activities: Increase in prepaid expenses (m) 6,440 Decrease in accounts payable (h) 89,600 Decrease in salaries payable (f) 8,120 Investing […]

Problem 14(13)-3A Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. The optional work sheet will not be graded, but is provided as an aid in determining […]

An asterisk (*) will appear to the right of an incorrect entry. Cash flows from operating activities: Cash received from customers Deduct: Net cash flow from operating activities Cash flows from investing activities: Cash received from sale of investments Less: […]

An asterisk (*) will appear to the right of an incorrect entry. Cash flows from operating activities: Cash received from customers Deduct: Net cash flow from operating activities Cash flows from investing activities: Cash received from sale of investments Less: […]

Exercise 14(13)-17 Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. a. Net income Adjustments to reconcile net income to […]

Problem 14(13)-2B Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. The optional work sheet will not be graded, but is provided as an aid in determining […]

Problem 14(13)-1B Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. The optional work sheet will not be graded, but is provided as an aid in determining […]

An asterisk (*) will appear to the right of an incorrect entry. Cash flows from operating activities: Cash received from customers Deduct: Net cash flow from operating activities Cash flows from investing activities: Cash received from sale of investments Less: […]

CHAPTER 14 Statement of Cash Flows Prob. 14–1A (Concluded) (Optional) Balance Balance Account Title Dec. 31, 2013 Dec. 31, 2014 Cash 439,440 (m) 29,880 469,320 Accounts receivable (net) 156,720 (l) 14,160 170,880 Inventories 462,840 (k) 18,480 481,320 Investments 180,000 (j) […]

Exercise 14(13)-16 Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. a. Net income Adjustments to reconcile net income to […]

Problem 14(13)-2A Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. The optional work sheet will not be graded, but is provided as an aid in determining […]

Problem 14(13)-3B Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. The optional work sheet will not be graded, but is provided as an aid in determining […]

4. The $30,000 increase must be added to income from operations because the amount of cash p aid to merchandise creditors was $30,000 less than the amount of purchases included in the cost of goods sold. 5. The $25,000 decrease […]

Problem 14(13)-1A Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. The optional work sheet will not be graded, but is provided as an aid in determining […]

An asterisk (*) will appear to the right of an incorrect entry. Cash flows from operating activities: Cash received from customers Deduct: Net cash flow from operating activities Cash flows from investing activities: Cash received from sale of investments Less: […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. a. 2014 2013 Amount Amount Amount Percent Sales 840,000$ 600,000$ Cost of goods sold 724,500 525,000 Gross profit 115,500$ 75,000$ Selling […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. Amount Percent Amount Percent Sales 1,325,000$ 1,200,000$ Sales returns and allowances 25,000 20,000 Net sales 1,300,000$ 1,180,000$ Cost of goods […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. Amount Percent Amount Percent Sales 922,500$ 820,000$ Sales returns and allowances 22,500 20,000 Net sales 900,000$ 800,000$ Cost of goods […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. 2014 2013 Amount Amount Amount Percent Sales 936,000$ 720,000$ Sales returns and allowances 26,000 20,000 Net sales 910,000$ 700,000$ Cost […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. a. Revenues: Admissions 139,125$ 163,087$ Event-related revenue 156,691 178,805 NASCAR broadcasting revenue 178,722 173,803 Other operating revenue 27,705 34,827 Total revenue […]

An asterisk (*) will appear to the right of an incorrect entry. Amount Percent Amount Percent Current assets Property, plant, and equipment Intangible assets Total assets Current liabilities Long-term liabilities Common stock Retained earnings Total liabilities and equity 2013 [Key […]

An asterisk (*) will appear to the right of an incorrect entry. 1. a. Working Capital = Current Assets –Current Liabilities = Working Capital = b. Current Assets Current Liabilities Current Ratio = Quick Assets Current Liabilities Quick Ratio = […]

An asterisk (*) will appear to the right of an incorrect entry. Current Assets – Current Liabilities = Calculated Value 1. Working capital: Ratio Numerator ÷ Denominator = Calculated Value 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. 2014 2013 Amount Amount Amount Percent Sales 1,092,500$ 950,000$ Sales returns and allowances 57,500 50,000 Net sales 1,035,000$ 900,000$ Cost […]

CHAPTER 15 Financial Statement Analysis Ex. 15–14 Hasbro: $2,477,806 = 1.5 $1,615,420 a. Ratio of Liabilities to Stockholders’ Equity = Total Liabilities Total Stockholders’ Equity 15-21 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, […]

1. Horizontal analysis is the percentage analysis of increases and decreases in corresponding statements. The percent change in the cash balances at the end of the preceding year from the 2. Comparative statements provide information as to changes between dates […]

An asterisk (*) will appear to the right of an incorrect entry. 1. a. Working Capital = Current Assets –Current Liabilities = Working Capital = b. Current Assets Current Liabilities Current Ratio = Quick Assets Current Liabilities Quick Ratio = […]

CHAPTER 15 Financial Statement Analysis Prob. 15–1B 1. 2014 2013 Amount Percent Sales $936,000 $720,000 $216,000 30.0% 2. The profitability has significantly improved from 2013 to 2014. Net sales have increased by 30% over the 2013 base year. However, the […]

An asterisk (*) will appear to the right of an incorrect entry. Current Assets – Current Liabilities = Calculated Value 1. Working capital: Ratio Numerator ÷ Denominator = Calculated Value 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover […]

1. Financial accounting and managerial accounting are different in several ways. Financial accounting information is reported in statements that are useful to persons or groups outside of a company. These statements objectively report the results of past operations for fixed […]

Prob. 16–5A (FIN MAN); Prob. 1–5A (MAN) (Concluded) 2. Sales $2,574,000 Cost of goods sold: Finished goods inventory, January 1, 2014 $ 507,000 Cost of goods manufactured 1,262,816 THE LUCILLE CORPORATION Income Statement For the Year Ended December 31, 2014 […]

2. The principal limitations of the cash payback method are its failure to consider cash flows occurring after the payback period and its failure to use present value concepts. 3. The average rate of return is not based on cash […]

Prob. 18–2A (FINMAN); Prob. 3–2A (MAN) 1. Whole Direct UNITS Units Materials Conversion Units charged to production: Inventory in process, May 1 1,200 Received from materials storeroom 18,900 Total units accounted for by the ABICA COFFEE COMPANY Cost of Production […]

CHAPTER 21 Budgeting Prob. 21–2B (FIN MAN); Prob. 6–2B (MAN) 1. Unit Sales Unit Selling Volume Price Total Sales King: Northern Domestic 610 $780 $ 475,800 2. King Prince Expected units to be sold 1,310 1,480 Plus desired inventory, February […]

CHAPTER 23 Performance Evaluation for Decentralized Operations Prob. 23–1A (FIN MAN); Prob. 8–1A (MAN) 1. Over Under Budget Actual Budget Budget Customer service salaries $ 390,600 $ 500,040 $109,440 Insurance and property taxes 81,900 79,440 $ 2,460 2. The customer […]

CHAPTER 25 Capital Investment Analysis Prob. 25–3A (FIN MAN); Prob. 10–3A (MAN) (Concluded) $9,257,000 $7,000,000 3. The new maintenance yard has the largest present value index. Although route expansion has the largest net present value, it returns less present value […]

CHAPTER 25 Capital Investment Analysis Prob. 25–4B (FIN MAN); Prob. 10–4B (MAN) 1. a. After Hours: Annual net cash flow (at the end of each of 4 years)………………… … $ 320,000 Sun Fun: Annual net cash flow (at the end […]

An asterisk (*) will appear to the right of an incorrect entry. a. Work in process inventory, May 1, 2014 Direct materials: Cost of direct materials used in production Direct labor Factory overhead: Total factory overhead Total manufacturing costs incurred […]

CHAPTER 26 Cost Allocation and Activity-Based Costing Prob. 26–6A (FIN MAN); Prob. 11–6A (MAN) (Concluded) 3. Procedure A Procedure B Procedure C Reimbursement (patient days × reimbursement rate)* $ 682,080 $1,319,500 $1,948,800 4. Procedure A requires more activity cost than […]

CHAPTER 19 Cost Behavior and Cost-Volume-Profit Analysis Prob. 19–2A (FIN MAN); Prob. 4–2A (MAN) 1. Variable Variable Total Cost Cost Percentage Cost Cost of goods sold……………… … $6,200,000 × 60% = $3,720,000 Selling expenses………………… … 3,400,000 ×75% = 2,550,000 2. […]

2. a. Variable costs b. Variable costs 3. Total fixed cost remains the same regardless of changes in the level of activity. Fixed cost per unit decreases as the activity level increases and increases as the activity level decreases. 4. […]

2. A single plantwide overhead rate will provide accurate product costing if products use p roduction department activity-base quantities in nearly the same ratio across departments. For example, if Product X used 2 hours of Department A and 4 hours […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Prius Company Volt Company Materials inventory, December 1 280,280$ 177,000$ Materials inventory, December 31 (a) 180,000 Materials purchased 712,800 342,000 Cost of direct materials used in production […]

1. The three major objectives of budgeting are (1) to establish specific goals for future 2. If goals set by the budgets are viewed as unrealistic or unachievable, employees and managers may become discouraged and may not be committed to […]

CHAPTER 24 Differential Analysis and Product Pricing Prob. 24–6A (FIN MAN); Prob. 9–6A (MAN) 1. High Good Regular Grade Grade Grade Selling price…………………………………………… … $280 $270 $250 2. The contribution margin per unit may give false signals when an organization […]

1. a. An assembly-type industry using mass production methods, such as TV assembly, would use the process cost system because the products are somewhat standard and lose their 2. Since all goods produced in a process cost system are identical […]

CHAPTER 22 Performance Evaluation Using Variances from Standard Costs Ex. 22–15 (FIN MAN); Ex. 7–15 (MAN) a. Direct labor hours 9,000 10,000 11,000 b. Overhead applied at actual production: Actual hours………………………………………………………………………… … 9,000 × Overhead application rate*…………………………………………………… … $ 10.50 […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Work in process inventory, January 1, 2014 Direct materials: Cost of direct materials used in production Direct labor Factory overhead: Total factory overhead Total manufacturing costs incurred […]

2. Move time and wait time in inventory are examples of non-value-added lead time. 3. A product-oriented layout can be designed to minimize materials movements and reduce (or eliminate) setup time. As a result, a product-oriented layout should have a […]

Ex. 18–15 (FINMAN); Ex. 3–15 (MAN) a. $23,064; determined as follows: Beginning work in process balance…………………………………………… … $ 20,856 Cost of beginning work in process completed during November………… … b. Cost of beginning work in process……………………………………………… $ 23,064 Cost of […]

1. In a centralized operation, all major planning and operating decisions are made by top management In a decentralized operation, managers of separate divisions or units are delegated operating 2. The department manager of a profit center has responsibility for […]

CHAPTER 23 Performance Evaluation for Decentralized Operations Prob. 23–3B (FIN MAN); Prob. 8–3B (MAN) 1. Sales Cereal Division: $720,000 $12,000,000 $12,000,000 $6,000,000 ROI = 6% × 2.0 ROI = 12.0% = × ROI Snack Cake Division: $660,000 $6,600,000 $6,600,000 $4,400,000 […]

PERFORMANCE EVALUATION USING VARIANCES 1. Standards are performance goals. Manufacturing companies normally use standard cost for each of the three following product costs: a. Direct materials 2. Reporting by the “principle of exceptions” is the reporting of only variances (or […]

CHAPTER 19 Cost Behavior and Cost-Volume-Profit Analysis Prob. 19–3B (FIN MAN); Prob. 4–3B (MAN) *$150 unit selling price – $110 unit variable cost $1,100,000 $40 per unit $800,000 + $300,000 Sales (units) = 27,500 units == $40 per unit 3. […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Work in process inventory, January 1, 2014 Direct materials: Cost of direct materials used in production Direct labor Factory overhead: Total factory overhead Total manufacturing costs incurred […]

CHAPTER 24 Differential Analysis and Product Pricing Ex. 24–15 (FIN MAN); Ex. 9–15 (MAN) a. Differential Reject Accept Effect Order Order on Income (Alternative 1) (Alternative 2) (Alternative 2) Revenues $0 $1,840,000 $1,840,000 120,000 tires × $92 per tire 220,000 […]

CHAPTER 20 Variable Costing for Management Analysis Ex. 20–16 (FIN MAN); Ex. 5–16 (MAN) a. Filmed Entertainment Networks Publishing Revenues…………………………… … $11,784.0 $13,562.0 $6,328.0 b. The Filmed Entertainment and Networks segments sell an information or media product that has a […]

1. a. Job order cost system and process cost system. 2. Job order costing is used by firms that sell custom goods and services to customers. The job order system is frequently associated with firms that will produce a product […]

CHAPTER 20 Variable Costing for Management Analysis Prob. 20–1B (FIN MAN); Prob. 5–1B (MAN) 1. Sales $2,150,000 Cost of goods sold: 2. Sales $2,150,000 Variable cost of goods sold: Variable cost of goods manufactured $1,536,000 Less inventory, July 31 (400 […]

Part A Total Cost = (Variable Cost per Unit × Units of Production) + Fixed Cost At the high point: At the low point: $740 = ($0.20 × 1,200 units) + Fixed Cost $600 = ($0.20 × 500 units) + […]

CHAPTER 27 Cost Management for Just-in-Time Environments Ex. 27–19 (FIN MAN); Ex. 12–19 (MAN) Pareto Chart of Quality Activities 120,000 140,000 27-21 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a […]

CHAPTER 22 Performance Evaluation Using Variances from Standard Costs Prob. 22–3A (FIN MAN); Prob. 7–3A (MAN) (Concluded) Actual costs 30,300 Applied costs 30,100 ($16,800 + $13,500) [4,300 × ($4.00 + $3.00)] Balance (underapplied) 200 Alternative Computation of Overhead Variances Factory […]

CHAPTER 21 Budgeting Ex. 21–19 (FIN MAN); Ex. 6–19 (MAN) October November December Receipts from cash sales: September sales on account: Collected in October (Accounts Receivable balance) 35,000 October sales1 on account: Collected in October ($43,500 × 30%) 13,050 Collected […]

1. a. Under absorption costing, both variable and fixed manufacturing costs are included as a p art of the cost of the product manufactured. 2. Fixed factory overhead. 3. Included as part of the cost of product manufactured: (b), (d), […]

Prob. 17–2A (FIN MAN); Prob. 2–2A (MAN) 1. a. Materials 39,300 Accounts Payable b. Work in Process 66,380 Factory Overhead 6,940 Materials Computation of cost of jobs finished: Direct Direct Factory Job Materials Labor Overhead Total No. 201… … $3,950 […]

Prob. 18–3B (FINMAN); Prob. 3–3A (MAN) 1. Whole Direct UNITS Units Materials Conversion Units charged to production: Inventory in process, January 1 3,400 Received from Reaction Department 52,300 Total units accounted for by the DOVER CHEMICAL COMPANY Cost of Production […]

An asterisk (*) will appear to the right of an incorrect entry. 1. On Company Off Company Materials inventory, December 1 65,800$ 195,300$ Materials inventory, December 31 (a) 91,140 Materials purchased 282,800 (a) Cost of direct materials used in production […]

CHAPTER 27 Cost Management for Just-in-Time Environments Prob. 27–4A (FIN MAN); Prob. 12–4A (MAN) (Concluded) 3. Percentages of total activity cost that are value- and non-value-added: 4. The department has 67% of its total costs as non-value-added. This is a […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Sales Gross profit Selling expenses: Total selling expenses Administrative expenses: Total operating expenses Income from operations Cost of goods sold supporting calculation: Manufacturing cost per unit (knife): […]

An asterisk (*) will appear to the right of an incorrect entry. 1. 2. Debit Credit a. Bal. Bal. b. 3. Schedule of unfinished jobs: Direct Direct Factory c. Materials Labor Overhead Total No. 104 No. 106 d. Balance of […]

An asterisk (*) will appear to the right of an incorrect entry. a. Revenues Gross profit Income from operations b. Materials inventory: Purchased materials Less: Materials used in production Materials inventory Work in process inventory: Materials used in production Direct […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. and 2. Customer Date Address Date Wanted Date Completed Item Job No. Amount Amount Amount meters at hours at Total […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Sales Gross profit Selling expenses: Total selling expenses Income from operations Cost of goods sold supporting calculation: Manufacturing cost per unit: Direct materials: Leather Velvet (for interior) […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. 1. Supporting calculations: May 1 Cost of Work in Direct Direct Factory Total Unit Units Goods Job. No. […]

An asterisk (*) will appear to the right of an incorrect entry. 1. 2. Debit Credit a. Bal. Bal. b. 3. Schedule of unfinished jobs: Direct Direct Factory c. Materials Labor Overhead Total No. 204 No. 206 d. Balance of […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. and 2. Customer Date Address Date Wanted Date Completed Item Job No. Amount Amount Amount meters at hours at Total […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. a. Materials Receiving Requi- Report Unit -sition Number Quantity Price Number Quantity Unit Price Amount Date Quantity Unit Price Amount July […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. 1. Supporting calculations: June 1 Cost of Work in Direct Direct Factory Total Unit Units Goods Job. No. […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. UNITS Whole Units Direct Materials Conversion Units charged to production: […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. and 2. Date Item Debit Credit Debit Credit Apr. 1 […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. and 2. Date Item Debit Credit Debit Credit Sept. 1 […]

An asterisk (*) will appear to the right of an incorrect entry. UNITS Equivalent Units Whole Units of Production Units to account for during production: Inventory in process, December 1 Received from materials storeroom Total units account for by the […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. UNITS Whole Units Direct Materials Conversion Units charged to production: Inventory in process, October 1 Received from materials […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. UNITS Whole Units Direct Materials Conversion Units charged to production: Inventory in process, May 1 Received from materials […]

An asterisk (*) will appear to the right of an incorrect entry. a. and b. Equivalent Percent Units of Complete Whole Units Production Units to be accounted for: Beginning work in process Units started during the period Total Units to […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. (a) UNITS Whole Units Direct Materials Conversion Units charged to production: […]

An asterisk (*) will appear to the right of an incorrect entry. UNITS Equivalent Units Whole Units of Production Units to account for during production: Inventory in process, May 1 Received from Milling Department Total units account for by the […]

An asterisk (*) will appear to the right of an incorrect entry. The essay portion will not be graded. MEMO To: Production Manager The cost of production report was used to identify the cost per case for each of the […]

An asterisk (*) will appear to the right of an incorrect entry. UNITS Equivalent Units Whole Units of Production Units charged to production: Inventory in process, January 1 Received from Weaving Department Total units account for by the Cutting Department […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. UNITS Whole Units Direct Materials Conversion Units charged to production: […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. a. Units in process at beginning of period Units placed in production during period Less units finished during […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Sales Cost of goods sold: Direct materials Direct labor Factory overhead Cost of goods sold Gross profit Expenses: Selling expenses Sales salaries and commissions Advertising Travel Miscellaneous […]

An asterisk (*) will appear to the right of an incorrect entry. a. – – = million (rounded) accounts Supporting calculations: Revenue per account (in millions): Total revenue (in millions) Total accounts (in millions)  Revenue per account (in millions) […]

An asterisk (*) will appear to the right of an incorrect entry. a. Sales (96,000 units) Variable cost of goods sold: Variable cost of goods manufactured Less ending inventory (24,000 units) Variable cost of goods sold Manufacturing margin Variable selling […]

An asterisk (*) will appear to the right of an incorrect entry. a. – – – – = Based on highest level: Total cost Units produced x Variable cost per unit Total variable cost Total fixed cost b. Based on […]

An asterisk (*) will appear to the right of an incorrect entry. a. Sales (420,000 units) Cost of goods sold: Unit Cost ×Units Cost of goods manufactured Less ending inventory Cost of goods sold Gross profit Selling and administrative expenses […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Sales Cost of goods sold: Direct materials Direct labor Factory overhead Cost of goods sold Gross profit Expenses: Selling expenses Sales salaries and commissions Advertising Travel Miscellaneous […]

Score: Key Code: Enter the appropriate amounts/formulas in the answer cells, or select from the drop-down list. In journal entries, dates will not be graded. In the general ledger accounts, only the final balance of the account will be graded. […]

Score: Key Code: Enter the appropriate amounts/formulas in the answer cells, or select from the drop-down list. An asterisk (*) will appear next to or below an incorrect entry only in the outlined cells. Only the ending balances of the […]

Score: Key Code: Enter the appropriate amounts/formulas in the answer cells, or select from the drop-down list. An asterisk (*) will appear to the right of incorrect entries in outlined answer cells. Enter a zero in answer cells you would […]

Score: Key Code: Enter the appropriate amounts/formulas in the answer cells, or select from the drop-down list. An asterisk (*) will appear next to or below an incorrect entry only in the outlined cells. Only ending balances of T accounts […]

Score: Key Code: Enter the appropriate amounts/formulas in the answer cells, or select from the drop-down list. In journal entries, dates will not be graded. In the general ledger accounts, only the final balance of the account will be graded. […]

An asterisk (*) will appear to the right of an incorrect entry. a. Rate Quantity Revenues railcars Variable costs: Labor costs for loading/unloading railcars Fuel costs train-miles Train crew labor costs train-miles Switchyard labor costs railcars Total variable costs Contribution […]

An asterisk (*) will appear to the right of an incorrect entry. 1. S M L Total Sales Variable cost of goods sold Manufacturing margin Variable operating expenses Contribution margin Fixed costs: Manufacturing costs Operating expenses Total fixed costs Income […]

An asterisk (*) will appear to the right of an incorrect entry. a. Effect of changes in variable costs of goods sold: Variable cost quantity factor* Unit cost factor** Total effect of change in variable cost of goods sold Effect […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. Planned contribution margin Effect of change in sales: Sales quantity factor1 Unit price factor2 Total effect of change in sales […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. a. Effect of change in sales: Sales quantity factor* Unit price factor** Total effect of change in sales * Difference in […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. a. Effect of change in sales: Sales quantity factor* Unit price factor** Total effect of change in sales * Difference in […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. Planned contribution margin Effect of change in sales: Sales quantity factor1 Unit price factor2 Total effect of change in sales […]

An asterisk (*) will appear to the right of an incorrect entry. a. Rate Quantity Revenue credit hours Variable costs: Regis., records, and marketing students Instructional costs credit hours Total variable costs Contribution margin Depreciation on classrooms and equipment Income […]

An asterisk (*) will appear to the right of an incorrect entry. 1. S M L Total Sales Variable cost of goods sold Manufacturing margin Variable operating expenses Contribution margin Fixed costs: Manufacturing costs Operating expenses Total fixed costs Income […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. 2014 2015 2016 2017 Building Equipment Information systems Total OMICRON INC. Capital Expenditures Budget For the Four Years […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. May June July Estimated cash receipts from: Cash sales Collections […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Unit Sales Unit Selling Total Product and Area Volume Price Sales Backyard Chef: Maine Vermont New Hampshire Total Master Chef: Maine Vermont New Hampshire Total Total revenue […]

An asterisk (*) will appear to the right of an incorrect entry. Total sales Variable cost: Sales commissions Advertising expense Miscellaneous selling expense Office supplies expense Miscellaneous administrative expense Total variable cost Fixed cost: Miscellaneous selling expense Office salaries expense […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Sales Cost of goods sold: Direct materials Direct labor Factory overhead Cost of goods sold Gross profit Operating expenses: Selling expenses: Sales salaries and commissions Advertising Miscellaneous […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Unit Sales Unit Selling Total Product Volume Price Sales Bird house Bird feeder Total revenue from sales 2. Bird Bird House Feeder Expected units to be sold […]

An asterisk (*) will appear to the right of an incorrect entry. Finished goods inventory, P1 and P2, June 1 Work in process inventory, June 1 Direct materials: Direct materials (oil) inventory, June 1 Direct materials (oil) purchases Cost of […]

An asterisk (*) will appear to the right of an incorrect entry. January February March Budgeted expenses 117,000$ 136,400$ 150,200$ Payment of prior month’s expense:  Pay in January Pay in February Pay in March Payment of current month’s expense: […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Unit Sales Unit Selling Total Product Volume Price Sales Batting helmet Football helmet Total revenue from sales 2. Batting Football Helmet Helmet Expected units to be sold […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Budget Actual Sales Amount Percent Home Alert System: United States Europe Asia Business Alert System: United States Europe Asia 2. 2015 2014 Percentage Budgeted Actual Increase Units […]

An asterisk (*) will appear to the right of an incorrect entry. a. Unit Sales Unit Selling Total Volume Price Sales Model DL: East Region West Region Total Model XL: East Region West Region Total Total revenue from sales b. […]

An asterisk (*) will appear to the right of an incorrect entry. a. Dockers® 501 Jeans® Expected units to be sold Plus May 31 desired inventory Total units Less May 1 estimated inventory Total units to be produced b. Inseam […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Sales Cost of goods sold: Direct materials Direct labor Factory overhead Cost of goods sold Gross profit Operating expenses: Selling expenses: Sales salaries and commissions Advertising Miscellaneous […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Unit Sales Unit Selling Total Product and Area Volume Price Sales King: Northern Domestic Southern Domestic International Total Prince: Northern Domestic Southern Domestic International Total Total revenue […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. June July August Estimated cash receipts from: Cash sales Collections […]

An asterisk (*) will appear to the right of an incorrect entry. Units of production Variable cost: Direct labor Direct materials Total variable cost Fixed cost: Supervisor salaries Depreciation Total fixed cost Total department cost Supporting calculations: Wages/Direct labor: Units […]

An asterisk (*) will appear to the right of an incorrect entry. The essay portion will not be graded. Enter a zero in cells you would otherwise leave blank. a. September October November December Estimated cash receipts from: Part-time job […]

An asterisk (*) will appear to the right of an incorrect entry. Rubber Steel Belts Total Pounds required for production: Passenger tires Truck tires Desired ending inventory Total (lbs.) Beginning inventory Total units (lbs.) to be purchased Unit price Total […]

An asterisk (*) will appear to the right of an incorrect entry. Variable factory overhead costs: Total variable factory overhead costs Fixed factory overhead costs: Total fixed factory overhead costs Total factory overhead costs Factory Overhead Cost Budget 0% Exercise […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Budget Actual Sales Amount Percent 8″ x 10” Frame: East Central West 12″ x 16″ Frame: East Central West 2. 2015 2014 Percentage Budgeted Actual Increase Units […]

An asterisk (*) will appear to the right of an incorrect entry. The essay portion will not be graded. a. January February March Units of production Wages Utilities Depreciation Total Supporting calculations: Wages: Units of production Hours per unit Total […]

An asterisk (*) will appear to the right of an incorrect entry. Dough Tomato Cheese Total Units required for production: 12″ pizza 16″ pizza Desired ending inventory Total Beginning inventory Total units to be purchased Unit price Total direct materials […]

An asterisk (*) will appear to the right of an incorrect entry. May June July Projected total monthly sales 126,000$ 145,000$ 162,000$ Receipts from cash sales: Cash sales May sales on account: Collected in May Collected in June Collected in […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. a. Price variance: Actual price Standard price Variance Actual quantity  Direct materials price variance Quantity variance: Actual […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. a. Price variance: Actual price Standard price Variance Actual quantity  Direct materials price variance Quantity variance: Actual […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. Productive capacity for the month: hours Actual productive capacity used for the month: hours Budget (at actual production) […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. Alternative Computation of Overhead Variances: a. Controllable variance: Actual variable factory overhead Standard variable factory overhead Actual costs […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. Normal capacity for the month: hours Actual production for the month: hours Budget (at actual production) Actual Favorable […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. Normal capacity for the month: hours Actual production for the month: hours Budget (at actual production) Actual Favorable […]

An asterisk (*) will appear to the right of an incorrect entry. a.  Manufacturing costs: Direct labor Direct materials Factory overhead Total b. (Favorable) Unfavorable Manufacturing costs:  Direct labor Direct materials Factory overhead Total c. Manufacturing Costs⎯Budget Performance […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. a. Direct Materials Variance Cocoa Sugar Total Price variance: Actual price Standard price Variance Actual quantity (lbs.) Direct materials price […]

Problem 22(7)-2B Answers are entered in the cells with gray backgrounds. Cells with non-gray backgrounds are protected and cannot be edited. An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. […]

An asterisk (*) will appear to the right of an incorrect entry. Essay answers will not be graded. Enter a zero in cells you would otherwise leave blank. 1. 2. 3. Semi- Navigational conductors Systems Total Sales: 2,240 units  […]

An asterisk (*) will appear to the right of an incorrect entry in the income statement and above or below elements in the equations. 1. Rate of Return (ROI) on Investment = Profit Margin x Investment Turnover Sales Electronics Division: […]

An asterisk (*) will appear to the right of an incorrect entry in the income statement and above or below elements in the equations. The essay answer will not be graded. 1. Snack Retail Cereal Cake Bakeries Division Division Division […]

An asterisk (*) will appear to the right of an incorrect entry in the income statement and above or below elements in the equations. The essay answer will not be graded. 1. Mutual Electronic Investment Fund Brokerage Banking Division Division […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. Budget Actual Over Budget Under Budget Customer service salaries Insurance […]

An asterisk (*) will appear to the right of an incorrect entry. Winter Summer Sports Sports Division Division Sales Cost of goods sold Gross profit Divisional expenses: Divisional selling expenses Divisional administrative expenses Total Income from operations before service department […]

An asterisk (*) will appear to the right of an incorrect entry in the income statement and above or below elements in the equations. The essay answer will not be graded. 1. Road Mountain Bike Bike Division Division Sales Cost […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. Budget Actual Over Budget Under Budget Sales salaries System administration […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. North South West Revenues Operating expenses Income from operations before service dept. charges Less service department charges: Dispatching Equipment management […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. East West Central Revenues Operating expenses Income from operations before service dept. charges Less service department charges: Customer support Legal […]

An asterisk (*) will appear to the right of an incorrect entry. Essay answers will not be graded. Enter a zero in cells you would otherwise leave blank. 1. 2. 3. Consumer Commercial Division Division Total Sales: 14,400 units  […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Revenues Cost of goods sold Gross profit Operating expenses Income from operations before service department charges Less service department charges: Tech […]

An asterisk (*) will appear to the right of an incorrect entry in the income statement and above or below elements in the equations. 1. Rate of Return (ROI) on Investment = Profit Margin x Investment Turnover Sales Commercial Division: […]

An asterisk (*) will appear to the right of an incorrect entry in the income statement and above or below elements in the equations. The essay answer will not be graded. 1. Business Consumer Division Division Sales Cost of goods […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. Continue with Replace Old Machine Old Machine on Income (Alternative […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. a. Make Carrying Buy Carrying Case Case on Income (Alternative 1) (Alternative 2) (Alternative 2) Costs: Purchase price […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. 1. Operate Invest Retail Store in Bonds on Income (Alternative 1) (Alternative 2) (Alternative 2) Revenues Costs: Costs […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. a. Continue with Replace Old Machine Old Machine on Income (Alternative 1) (Alternative 2) (Alternative 2) Revenues: Sales […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. Continue with Replace Old Machine Old Machine on Income (Alternative […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. a. Layout Pages Purchase Internally Layout Services on Income (Alternative 1) (Alternative 2) (Alternative 2) Revenues: Salvage of […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Production Setup Inspection Shipping Cust. Serv. Total activity cost Divided by total activity base mh setups inspections cust. orders requests Activity rate 2. Activity Activity Activity Activity […]

An asterisk (*) will appear to the right of an incorrect entry. a. Activity Activity Activity Activity Activity Activity Base Usage Rate =Cost Activity Base Usage Rate =Cost Fabrication mh mh Assembly dlh dlh Setup setups setups Inspecting insp. insp. […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. a. Continue Discontinue Cups Cups on Income (Alternative 1) (Alternative 2) (Alternative 2) Revenues Costs: Variable cost of […]

An asterisk (*) will appear to the right of an incorrect entry, or above and below in formulas. Enter a zero in cells you would otherwise leave blank. a. Sell Regular Columbian Into Decaf on Income (Alternative 1) (Alternative 2) […]

An asterisk (*) will appear to the right of an incorrect entry, or above and below in formulas. Enter a zero in cells you would otherwise leave blank. a. Reject Order Accept Order on Income (Alternative 1) (Alternative 2) (Alternative […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. Ethylene Butane Ester Selling price Variable conversion cost per unit Direct materials cost per unit Total cost per unit Contribution […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. Promote Promote Tennis Shoe Walking Shoe on Income (Alternative 1) […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. High Good Regular Grade Grade Grade Selling price Variable conversion cost per unit Direct materials cost per unit Total cost […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. 1. Operate Invest Warehouse in Bonds on Income (Alternative 1) (Alternative 2) (Alternative 2) Revenues Costs: Costs to […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Production Setup Moving Shipping Prod. Engineering Total activity cost Divided by total activity base mh setups moves cust. orders test runs Activity rate 2. Activity Activity Activity […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. Promote Promote Moisturizer Perfume on Income (Alternative 1) (Alternative 2) […]

An asterisk (*) will appear to the right of an incorrect entry, or above and below formulas. The essay answer will not be graded. 1. a. Average annual rate of return for both projects:   1. b. Present Value […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. Present Value Net Cash Present Value of Net Cash Present Value of Net Cash Present Value of of $1 at […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. Witchita: Annual net cash flow (at the end of each […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Fill out the table completely, even after the payback period is reached for each product line. a. Initial investment: Net Cash […]

An asterisk (*) will appear to the right of an incorrect entry, or above and below formulas. The essay answer will not be graded. 1. a. Average annual rate of return for both projects:   1. b. Present Present […]

An asterisk (*) will appear to the right of an incorrect entry. Present Present Value of Net Cash Value of Net $1 at 15% Flow =Cash Flow Year 1 Year 2 Year 3 Year 4 Year 4 (residual value) Total […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Fill out the table in 1a completely, even after the payback period is reached. 1. a. Initial investment: Net Cash Cumulative […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Fill out the table in 1a completely, even after the payback period is reached. 1. a. Initial investment: Net Cash Cumulative […]

An asterisk (*) will appear to the right, immediately above, or immediately below an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. Proposal A: -year, -month cash payback […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. Present Value Net Cash Present Value of Net Cash Present Value of Net Cash Present Value of of $1 at […]

An asterisk (*) will appear to the right, immediately above, or immediately below an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. Proposal A: -year, -month cash payback […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. Office Expansion: Annual net cash flow (at the end of […]

An asterisk (*) will appear to the right of an incorrect entry. a. Activity rates: Assembly Test and Pack Setup Activity Activity Activity Budgeted activity cost Activity base  dlh  dlh  setups Activity rate /dlh /dlh /setup b. […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. Scheduling & Admitting Housekeeping Nursing Activity cost Activity base  patients  days  wgt. care units Activity rate /patient […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. a. Indirect Labor / Plantwide Allocation Base = Single Plantwide Rate dlh per dlh Direct Indirect Indirect Labor Plantwide Labor Labor […]

An asterisk (*) will appear to the right of an incorrect entry. a. Production department factory overhead rates: Assembly Test and Pack Department Department Factory overhead Direct labor hours   Production department factory overhead rate /dlh /dlh b. Allocation-Base […]

An asterisk (*) will appear to the right of an incorrect entry. a. Budgeted Activity Activity Cost = Casting mh /mh Assembly dlh /dlh Inspecting insp. /insp. Setup setups /setup Materials handling loads /load b. Activity Activity Activity Activity Activity […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. Customer Project Engineering Service Bidding Support Activity cost Activity base  serv. reqs.  bids  desgn. chngs. Activity rate […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. a. Production department factory overhead rates: Pattern Cut and Sew Department Department Factory overhead Direct labor hours   Production department […]

An asterisk (*) will appear to the right of an incorrect entry. a. Factory Activity Overhead = Procurement purch. ords. /purch. ord. Scheduling prod. ords. /prod. ord. Materials handling moves /move Product development ECOs /ECO b. Activity Activity Activity Activity […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. Production department rates: Subassembly Final Assembly Department Department Factory overhead Direct labor hours   Production department rate /dlh /dlh […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Production Setup Moving Shipping Prod. Engineering Total activity cost Divided by total activity base mh setups moves cust. orders test runs Activity rate 2. Activity Activity Activity […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Production Setup Inspection Shipping Cust. Serv. Total activity cost Divided by total activity base mh setups inspections cust. orders requests Activity rate 2. Activity Activity Activity Activity […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. Customer Sales Order Advertising Service Processing Support Activity cost pool Activity base  serv. reqs.  orders  ads placed […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. Production department rates: Cutting Finishing Department Department Factory overhead Direct labor hours   Production department rate /dlh /dlh 2. […]

An asterisk (*) will appear to the right of an incorrect entry. a. Activity Activity Activity Activity Activity Activity Base Usage Rate =Cost Activity Base Usage Rate =Cost Fabrication mh mh Assembly dlh dlh Setup setups setups Inspecting insp. insp. […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. a. Activity Activity Activity Activity Activity Activity Activity Usage Rate Cost Usage Rate Cost Room and meals days /day days /day […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. Depreciation and maintenance cost per mile: Fuel Crew salaries Depreciation Total Monthly number of miles flown  Rate per mile […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answers will not be graded. a. A B C Single Rate ABC Percent Overhead Overhead Change in Allocation Allocation Allocation per Unit per Unit (B – […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. a. Workers’ Home- Auto Comp. owners Premium revenue Less estimated claims Underwriting income Administrative activities: New policy processing Cancellation processing Claim […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. a. Direct Labor Total Labor Volume Hours per Unit = Hours Pitsons  = Valves  = Cams  = Total […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. a. Percent of Total Activity Cost Process Receiving claim Adjusting claim Paying claim Total The activity is the […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. Completion of the following table will be helpful in developing […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. Value-Added Non-Value- Total Time Added Time Time Processing time Within batch wait time Move time Total Value-Added Time […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. Budgeted cell conversion cost rate: Total Conversion Cost / Planned Production Hours = Rate per Hour 2. Budgeted cell conversion […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. Value-added time (minutes): Stamping Appliance assembly Time to test one unit Pack and label Total Non-value-added time (minutes): Wait time: […]

An asterisk (*) will appear to the right of an incorrect entry. The optional table and essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. Optional: Completion of the following table may be […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. Budgeted cell conversion cost rate: Total Conversion Cost / Planned Production Hours = Rate per Hour 2. Budgeted cell conversion […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. Completion of the following table will be helpful in developing […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. a. Percent of Total Activity Cost Process Preparing materials request Requesting, receiving, and selecting vendor bids Preparing purchase […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. a. & b. Activity 1:00 PM Arrives at doctor office Waits […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. Value-Added Non-Value- Total Time Added Time Time Processing time Within batch wait time Move time Total Value-Added Time […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. Value-added time (minutes): Assembly of PC board Stereo assembly Time to inspect one unit Pack and label Total Non-value-added time […]

Score: Key Code: An asterisk (*) will appear to the left of an incorrect entry. In the table, enter a zero in cells you would otherwise leave blank. 1. Account Debit Credit a. b. c. d. 2. = + Reported […]

Score: Key Code: An asterisk (*) will appear to the right of an incorrect entry. In the trial balance, enter a zero in cells you would otherwise leave blank. 1. Account Debit Credit a. b. c. d. e. f. g. […]

Score: Key Code: An asterisk (*) will appear to the right of an incorrect entry. In the trial balance, enter a zero in cells you would otherwise leave blank. 1. Account Debit Credit a. b. c. d. e. f. g. […]

Score: Key Code: An asterisk (*) will appear to the right of an incorrect entry. In the table, enter a zero in cells you would otherwise leave blank. 1. Account Debit Credit a. b. c. d. 2. = + Reported […]

Score: Key Code: An asterisk (*) will appear to the right of an incorrect entry. 1. Account Debit Credit a. b. c. d. e. 2. are a planned part of the accounting process. are not planned but arise only when […]

Score: Key Code: An asterisk (*) will appear to the right of an incorrect entry. 1. Account Debit Credit a. b. c. d. e. 2. are a planned part of the accounting process. are not planned but arise only when […]

Problem 4-5B Score: Key Code: Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. In the general ledger accounts, only normal balance columns will be graded. In […]

Exercise 4-24 Score: Key Code: Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. In the work sheet, enter a zero in cells you would otherwise leave […]

Problem 4-5A Score: Key Code: Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. In the general ledger accounts, only normal balance columns will be graded. In […]

Exercise 4-26 Score: Key Code: Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. Total expenses Net income (loss) Current assets: Current liabilities Total liabilities Total current […]

Problem 4-1B Score: Key Code: Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. In the trial balance, enter a zero in cells you would otherwise leave […]

Problem 4-4B Score: Key Code: Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. In the general ledger accounts, only normal balance columns will be graded. In […]

Problem 4-4A Score: Key Code: Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. In the general ledger accounts, only normal balance columns will be graded. In […]

Problem 4-1A Score: Key Code: Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. In the trial balance, enter a zero in cells you would otherwise leave […]

Exercise 4-25 Score: Key Code: Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. In the work sheet, enter a zero in cells you would otherwise leave […]

Key Code: An asterisk (*) will appear to the right of an incorrect entry. Enter all amounts as positive numbers. 1. Wyman Company uses which type of inventory system? 2. Revenue from sales: Less: Net sales Cost of merchandise sold: […]

Score: Key Code: An asterisk (*) will appear to the left of an incorrect entry. Account Debit Credit Mar. 2 2 3 3 4 4 5 5 12 14 14 Problem 5-2A Name: Section: 0% JOURNAL Date [Key code here] […]

Key Code: An asterisk (*) will appear to the right of an incorrect entry. Account Debit Credit July 1 1 2 2 5 5 8 8 13 13 14 14 15 0% JOURNAL Date [Key code here] Instructions Answers are […]

Problem 5-6A Score: Key Code: Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. 1. Revenues: Net sales Expenses: Total expenses Net income 2. Retained earnings, September […]

Problem 5-5A Key Code: Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. Essay answers will not be graded. 1. Revenue from sales: Less: Net sales Cost […]

Problem 5-5B Score: Key Code: Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. Essay answers will not be graded. 1. Revenue from sales: Less: Net sales […]

Key Code: An asterisk (*) will appear to the right of an incorrect entry. Enter all amounts as positive numbers. 1. Simkins Company uses which type of inventory system? 2. Revenue from sales: Less: Net sales Cost of merchandise sold: […]

Exercise 5-23 Key Code: Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. a. Revenue from sales: Less: Net sales […]

Problem 5-6B Score: Key Code: Instructions Answers are entered in the cells with gray backgrounds. An asterisk (*) will appear to the right of an incorrect entry. 1. Revenues: Net sales Expenses: Total expenses Net income 2. Retained earnings, July […]

An asterisk (*) will appear to the right of an incorrect entry. Only final inventory cost – Column K – will be graded. a. Aug. 1 775 $44 34,100$ 10 12 14 20 31 31 Balances b. Based on the […]

An asterisk (*) will appear to the right of an incorrect entry. Only final inventory cost – Column K – will be graded. Aug. 1 775 $44 34,100$ 10 12 14 20 31 31 Balances Quantity Unit Cost Quantity Total […]

An asterisk (*) will appear to the right of an incorrect entry. In part 1, only final inventory cost – Column K – will be graded. 1. June 1 500 $30.00 15,000$ 10 28 30 July 5 10 16 28 […]

An asterisk (*) will appear to the right of an incorrect entry. In part 1, only final inventory cost – Column K – will be graded. 1. June 1 500 $30.00 15,000$ 10 28 30 July 5 10 16 28 […]

An asterisk (*) will appear to the right of an incorrect entry. Unit Market Lower of Commodity Price Cost Market C or M C300 77 $40 $39 F679 115 8 9 K200 3,180 3 2 MN23 190 29 26 XX51 […]

An asterisk (*) will appear to the right of an incorrect entry. Cost Retail Merchandise inventory, June 1 Purchases in June (net) Merchandise available for sale Ratio of cost to retail price: Cost: Retail: Sales for June (net) Merchandise inventory, […]

An asterisk (*) will appear to the right of an incorrect entry. Only final inventory cost – Column K – will be graded. Apr. 1 120 $39 4,680$ 6 14 19 25 30 30 Balances Quantity Unit Cost Quantity Total […]

Key Code: An asterisk (*) will appear to the right of an incorrect entry. 1. First-In, First-Out Method (list most recent purchases first for each item) Model Quantity Unit Cost Total Cost C55 D11 F32 H29 K47 S33 X74 Total […]

An asterisk (*) will appear to the right of an incorrect entry. In part 1, only final inventory cost – Column K – will be graded. 1. Aor. 3 25 $1,200 30,000$ 8 11 30 May 8 10 19 28 […]

Key Code: An asterisk (*) will appear to the right of an incorrect entry. 1. First-In, First-Out Method (list most recent purchases first for each item) Model Quantity Unit Cost Total Cost A10 B15 E60 G83 J34 M90 Q70 Total […]

An asterisk (*) will appear to the right of an incorrect entry. In part 1, only final inventory cost – Column K – will be graded. 1. Apr. 3 25 $1,200 30,000$ 8 11 30 May 8 10 19 28 […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Balance per bank statement Add: Subtotal Deduct: Adjusted balance Balance per company‘s records Add: Subtotal Deduct: Adjusted balance 2. 3. Amount to be reported as cash on […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. Cash balance according to bank statement Add: Subtotal Deduct outstanding checks: Adjusted balance Cash balance according to company’s records Add: […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Balance per bank statement Add: Subtotal Deduct: Adjusted balance Balance per company’s records Add: Subtotal Deduct: Adjusted balance 2. 3. Amount to be reported as cash on […]

An asterisk (*) will appear to the right of an incorrect entry. Account Debit Credit 2014 June 1 12 30 30 30 0% JOURNAL Date [Key code here] Instructions Answers are entered in the cells with gray backgrounds. Cells with […]

An asterisk (*) will appear to the right of an incorrect entry. Account Debit Credit 2014 May 1 10 31 31 31 Problem 7-2A Name: Section: 0% JOURNAL Date [Key code here] Instructions Answers are entered in the cells with […]

An asterisk (*) will appear to the left of an incorrect entry. 1. Cash balance according to bank statement Add: Subtotal Deduct: Adjusted balance Cash balance according to company’s records Add: Subtotal Deduct: Adjusted balance 2. 3. Amount to be […]

An asterisk (*) will appear to the right of an incorrect entry. 1. Cash balance according to bank statement Add: Subtotal Deduct: Adjusted balance Cash balance according to company‘s records Add: Subtotal Deduct: Adjusted balance 2. 3. Amount to be […]

An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. 1. Cash balance according to bank statement Add: Subtotal Deduct outstanding checks: Adjusted balance Cash balance according to company’s records Add: […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. 1. Customer Due Date Arcade Beauty August 17, 2013 Creative Images October 30, 2013 Excel Hair Products July […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. a. Customer Due Date Color World Industries March 13 Hawks Company June 29 Osler Inc. July 8 Sather […]

An asterisk (*) will appear to the right of an incorrect entry. Enter a zero in cells you would otherwise leave blank. 1. Customer Due Date Adams Sports and Flies May 22, 2013 Blue Dun Files Oct. 10, 2013 Cicada […]

An asterisk (*) will appear to the right of an incorrect entry. Not Past Over Customer Balance Due 1 – 30 31 – 60 61 – 90 90 Total receivables 833,500$ 488,000$ 166,500$ 96,000$ 43,000$ 40,000$ Percent uncollectible Allowance for […]

An asterisk (*) will appear to the right of an incorrect entry. Portion Due Date Principal x Rate x of Year =Interest a. b. c. d. e. Exercise 8-19 Name: Section: Cells with non-gray backgrounds are protected and cannot be […]

An asterisk (*) will appear to the right of an incorrect entry. 1. a. Accumulated Depreciation Depreciation, Book Value, Year Expense End of Year End of Year Original cost 800,000$ 1 2 3 4 5 Calculation: (Cost – Residual Value) […]

An asterisk (*) will appear to the right of an incorrect entry. a. b. c. Straight- Units of Double-Declining- Year Line Production Balance 2012 2013 2014 2015 Totals Calculations: Straight-line method: For full year: (Cost – Residual Value) / Years […]

An asterisk (*) will appear to the right of an incorrect entry. 1. a. b. c. Straight- Units of Double-Declining- Year Line Production Balance 2012 2013 2014 Totals Calculations: Straight-line method: (Cost – Residual Value) / Years =Yearly Depreciation Units-of-production […]

An asterisk (*) will appear to the right of an incorrect entry. 1. a. Accumulated Depreciation Depreciation, Book Value, Year Expense End of Year End of Year Original cost 110,000$ 1 2 3 4 Calculation: (Cost – Residual Value) / […]

An asterisk (*) will appear to the right of an incorrect entry. 1. a. b. c. Straight- Units of Double-Declining- Year Line Production Balance 2013 2014 2015 2016 Totals Calculations: Straight-line method: (Cost – Residual Value) / Years =Yearly Depreciation […]

An asterisk (*) will appear to the right of an incorrect entry. a. b. c. Straight- Units of Double-Declining- Year Line Output Balance 2012 2013 2014 2015 Totals Calculations: Straight-line method: For full year: (Cost – Residual Value) / Years […]

1) The seller records the sales tax as part of the sales amount. 2) If 800 shares of $40 par common stock are sold for $43,000, the $43,000 would be reported in the cash flows from financing activities section of […]

1) The Sarbanes-Oxley Act prohibits CPAs from providing nonaudit investment banking services. 2) One inherent risk to using just-in-time philosophy is that companies are at higher risk of inventory shortage during volatile times such as strikes, weather, etc. than the […]

1) The major advantage of residual income as a performance measure is that it gives consideration to not only a minimum rate of return on investment but also the total magnitude of income from operations earned by each division. 2) […]

1) Sarbanes-Oxleys purpose is to improve financial reporting. 2) Sales reported on the income statement were $372,000. The accounts receivable balance declined $4,500 over the year. The amount of cash received from customers was $367,500. Answer: FALSE 3) In a […]

1) Average inventory is computed by adding the inventory at the beginning of the period to the inventory at the end of the period and dividing by two. 2) A check for $342 was erroneously charged by the bank as […]

1) If merchandise costing $3,500, terms FOB destination, 2/10, n/30, with prepaid freight costs of $125, is paid within 10 days, the amount of the purchases discount is $70. 2) If 100 shares of treasury stock were purchased for $50 […]

1) Managerial accounting reports are prepared according to generally accepted accounting principles. 2) The materials requisition serves as the source document for debiting the accounts in the materials ledger. Answer: FALSE 3) As a company records depreciation expense for a […]

1) A net loss is shown on the work sheet in the credit columns of both the Income Statement columns and the Balance Sheet columns. 2) Managers use managerial information to evaluate performance of a companys operation. Answer: TRUE 3) […]

1) When accounting for uncollectible receivables and using the percentage of sales method, the matching principle is violated. 2) The double declining balance depreciation method calculates depreciation each year by taking twice the straight line rate times the book value […]

1) Budgetary slack can be avoided if lower and mid-level managers are requested to support all of their spending requirements with specific operational plans. 2) After the sales budget is prepared, the production budget is normally prepared next. Answer: TRUE […]

1) In calculating the net present value of an investment in equipment, the required investment and its terminal residual value should be subtracted from the present value of all future cash inflows. 2) For a period during which the quantity […]

1) On the income statement, miscellaneous expenses are usually presented as the last item without regard to the dollar amount. 2) The erroneous moving of an entire number one or more spaces to the right or left, such as writing […]

1) Managerial information is for external as well as internal stakeholders. 2) The transfer to expense of the cost of intangible assets attributed to the passage of time or decline in usefulness is called amortization. Answer: TRUE 3) Form W-4 […]

1) Investments in stocks that are expected to be held for the long term are listed in the stockholders equity section of the balance sheet. 2) The three inventory costing methods will normally each yield different amounts of net income. […]

1) Under the perpetual inventory system, a company purchases merchandise on terms 2/10, n/30. If payment is made within 10 days of the purchase, the entry to record the payment will include a credit to Cash and a credit to […]

1) The present value of the periodic bond interest payments is the value today of the amount of interest to be received at the end of each interest period. 2) The budgeting process is used to effectively communicate planned expectations […]

1) A secured bond is called a debenture bond and is backed only by the general creditworthiness of the corporation. 2) Product costs include direct labor and advertising expense. Answer: FALSE 3) Cost systems using detailed estimates of each element […]

1) Generally, the lower the number of days’ sales in inventory, the better. 2) The acquisition of land in exchange for common stock is an example of noncash investing and financing activity. Answer: TRUE 3) Entries required to close the […]

1) Accounting information users need reports about the economic activities and condition of businesses. 2) Methods that ignore present value in capital investment analysis include the internal rate of return method. Answer: FALSE 3) When long-term investments in bonds are […]

1) Activity-based costing is much easier to apply than single plantwide factory overhead allocation. 2) Safeguarding inventory and proper reporting of the inventory in the books are the reasons for controlling the inventory. Answer: TRUE 3) A receiving report is […]

1) Bonds may be purchased directly from the issuing corporation or through one of the bond exchanges. 2) Period costs are operating costs that are expensed in the period in which the goods are sold. Answer: FALSE 3) In a […]

1) The unearned revenues account is an example of a liability. 2) The excess of the cash flowing in from revenues over the cash flowing out for expenses is termed net discounted cash flow. Answer: FALSE 3) The balance in […]

1) In a process costing system, the cost per equivalent unit is computed before computing equivalent units. 2) The range of activity over which changes in cost are of interest to management is called the relevant range. Answer: TRUE 3) […]

1) Twenty percent of all businesses in the United States are corporations and they account for 80% of the total business dollars generated. 2) Most large companies will use only one inventory costing methods for all of its different segments. […]

1) Money orders are considered cash. 2) On the variable costing income statement, deduction of the variable cost of goods sold from sales yields gross profit. Answer: FALSE 3) The theory of constraints is a manufacturing strategy that focuses on […]

1) In the retail inventory method, the cost to retail ratio is equal to the cost of goods sold divided by the retail price of the good sold. 2) If the underapplied factory overhead amount is immaterial, it is transferred […]

1) The anticipated purchase of a fixed asset for $400,000, with a useful life of 5 years and no residual value, is expected to yield total net income of $200,000 for the 5 years. The expected average rate of return […]

1) Make-to-order companies produce mainly to stock inventory. 2) The current year’s advertising costs are normally considered period costs. Answer: TRUE 3) Variable costs are costs that vary in total in direct proportion to changes in the activity level. Answer: […]

1) The direct write-off method records Bad Debt Expense in the year the specific account receivable is determined to be uncollectible. 2) Sales Returns and Allowances is a contra-revenue account. Answer: TRUE 3) Bonds of major corporations are traded on […]

1) The DuPont formula uses financial and nonfinancial information to measure the performance of a business. 2) For short-run production planning, information in the variable costing format is more useful to management than is information in the absorption costing concept […]

1) One of the advantages of decentralization is that delegating authority to managers closest to the operation always results in better decisions. 2) In the absorption costing income statement, deduction of the cost of goods sold from sales yields net […]

1) At the end of a period (before adjustment), Allowance for Doubtful Accounts has a credit balance of $5,000. The Accounts Receivable balance is analyzed by aging the accounts and the amount estimated to be uncollectible is $50,000. The amount […]

1) The internal rate of return method of analyzing capital investment proposals uses the present value concept to compute an internal rate of return expected from the proposals. 2) The journal entry to record the cost of warranty repairs that […]

129. List the five steps in the process by which accounting provides information to users. 130. What is the major difference between the objective of financial accounting and the objective of managerial accounting? The objective of financial accounting is to […]

178. Identify each of the following as either internal or external users of accounting information. 179. Determine the missing amount for each of the following: Assets Liabilities Stockholders’ Equity (a) $38,000 $45,000 $30,000 (b) $22,000 $53,000 $ 32,000 (c) (a) […]

Chapter 1—Introduction to Accounting and Business Key 1. The main objective of a not-for-profit business is not to make a profit. 2. The role of accounting is to provide many different users with financial information to make economic decisions. TRUE […]

Chapter 10—Current Liabilities and Payroll Key 1. Receiving payment prior to delivering goods or services causes a current liability to be incurred. 2. For a current liability to exist, the following two tests must be met. The liability must be […]

161. Darius Company has the following information for the pay period of January 15 – 31, 20xx. Gross payroll $20,000 Federal income tax withheld $2,500 Social security rate 6% Federal unemployment tax rate .8% Medicare rate 1.5% State unemployment tax […]

114. Which of the following is not an internal control procedure for payroll? 115. A pension plan which requires the employer to make annual pension contributions, with no promise to employees regarding future pension payments, is termed A. funded B. […]

132. A corporation has 50,000 shares of $25 par value stock outstanding that has a current market value of $120. If the corporation issues a 5-for-1 stock split, the par value of the stock after the split will be: 133. […]

168. On February 13, Epperson Company issue for cash 75,000 shares of no-par common stock (with a stated value of $125) at $140. On September 9, Epperson issued at par 15,000 share of 1%, $60 par preferred stock at par […]

Chapter 11—Corporations: Organization, Stock Transactions, and Dividends Key 1. Twenty percent of all businesses in the United States are corporations and they account for 80% of the total business dollars generated. 2. A corporation is a separate entity for accounting […]

171. Given the following data, prepare an amortization schedule (use the straight line method) 1/1/10 – issued $800,000, 9%, 3 year bonds, interest paid annually on 12/31 to yield 8% Use the following format (round to nearest dollar, may have […]

Chapter 12—Long-Term Liabilities: Bonds and Notes Key 1. A bond is simply a form of an interest bearing note. 2. Bondholders are creditors of the issuing corporation. TRUE 3. Bonds of major corporations are traded on bond exchanges. TRUE 4. […]

130. The balance in Premium on Bonds Payable 131. Debtors are interested in the times-interest-earned ratio because they want to A. know what rate of interest the corporation is paying B. have adequate protection against a potential drop in earnings […]

111. On October 1, 2012, Marcus Corporation purchased $20,000 of 6% bonds of Roberts Corporation, due in 8 1/2 years. The bonds were purchased at a price of $17,561 plus interest of $300 accrued from July 1, 2012, the date […]

Chapter 13—Investments and Fair Value Accounting Key 1. Although marketable securities may be retained for several years, they continue to be classified as temporary, provided they are readily marketable and can be sold for cash at any time. 2. As […]

155. A company reports the following: Cost of goods sold $610,000 Average inventory $80,000 Determine the (a) inventory turnover, and (b) number of days’ sales in inventory. Round your answer to one decimal place. 156. The following information was taken […]

176. 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’ […]

105. The balance sheets at the end of each of the first two years of operations indicate the following: 2012 2011 Total current assets $600,000 $560,000 Total investments 60,000 40,000 Total property, plant, and equipment 900,000 700,000 Total current liabilities […]

Chapter 15—Financial Statement Analysis Key 1. Comparable financial statements are designed to compare the financial statements of two or more corporations. 2. In horizontal analysis, the current year is the base year. FALSE 3. On a common-sized income statement, all […]

Chapter 16—Managerial Accounting Concepts and Principles Key 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 […]

135. Williams Company reports production costs for 2015 as follows: Direct materials used $345,000 Direct labor incurred 250,000 Factory overhead incurred 400,000 Operating expenses 175,000 Williams Company’s period costs for 2015 amount to: 136. Williams Company reports production costs for […]

164. Discuss the use of job order costing for professional services businesses. What are the similarities and differences between service and manufacturing business job order costing? 165. ABC Printing Company uses a job order cost system. (a) Indicate the source […]

118. The following budget data are available for Oldest Company: Estimated direct labor hours 12,000 Estimated direct labor dollars $90,000 Estimated factory overhead costs $198,000 If factory overhead is to be applied based on direct labor hours, the predetermined overhead […]

Chapter 17—Job Order Costing Key 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 […]

104. Carmelita Inc., has the following information available: Costs from Costs from Beginning Inventory Current Period Direct materials $2,500 $22,252 Conversion Costs 6,200 150,536 At the beginning of the period, there were 500 units in process that were 60 percent […]

156. The cost of materials transferred into the Bottling Department of Mountain Springs Water Company is $32,400, with $26,000 from the Purifying Department, plus additional $6,400 from the materials storeroom. The conversion cost for the period in the Bottling Department […]

180. Steven Company has fixed costs of $160,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company’s two products are provided below. Product Selling Price per unit Variable Cost per unit Contribution Margin […]

Chapter 2—Analyzing Transactions Key 1. Accounts are records of increases and decreases in individual financial statement items. 2. A chart of accounts is a listing of accounts that make up the journal. FALSE 3. The chart of accounts should be […]

217. Record the following selected transactions for April in a two-column journal, identifying each entry by letter: (a) Received $18,000 from Katie Long in exchange for stock. (b) Purchased equipment for $27,000, paying $10,000 in cash and giving a note […]

203. Listed below are accounts to use for transactions (a) through (d), each identified by a number. Following this list are the transactions. You are to indicate for each transaction the accounts that should be debited and credited by placing […]

145. Which of the following stockholder equity accounts follow the same debit and credit rules as liabilities? 146. The payment for the monthly rent will require which of the following entries? A. debit Cash and debit Rent Expense B. credit […]

101. A business operated at 100% of capacity during its first month, with the following results: Sales (90 units) $90,000 Production costs (100 units): Direct materials $40,000 Direct labor 20,000 Variable factory overhead 2,000 Fixed factory overhead 7,000 69,000 Operating […]

Chapter 20—Variable Costing For Management Analysis Key 1. In determining cost of goods sold, two alternate costing concepts can be used: absorption costing and variable costing. 2. In determining cost of goods sold, two alternate costing concepts can be used: […]

143. Hsu Company produces a part with a standard of 5 yds. of material per unit. The standard price of one yard of material is $8.50. During the month, 8,800 parts were manufactured, using 45,700 yards of material at a […]

104. The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows: Standard Costs Fixed overhead (based on 10,000 hours) 3 hours @ $.80 per hour Variable overhead 3 hours […]

125. In an investment center, the manager has responsibility and authority for making decisions that affect: 126. The profit margin is the: A. ratio of income from operations to sales B. ratio of income from operations to invested assets C. […]

179. Piano Company’s costs were over budget by $47,000. The Piano Company is divided in two regions. The first region’s costs were over budget by $5,000. Determine the amount that the second region’s cost was over or under budget. 180. […]

Chapter 23—Performance Evaluation for Decentralized Operations Key 1. Separation of businesses into more manageable operating units is termed decentralization. 2. The process of measuring and reporting operating data by areas of responsibility is termed responsibility accounting. TRUE 3. A decentralized […]

Chapter 24—Differential Analysis and Product Pricing Key 1. Differential revenue is the amount of income that would result from the best available alternative proposed use of cash. 2. Differential revenue is the amount of increase or decrease in revenue expected […]

142. The Canine Company has total estimated factory overhead for the year of $2,400,000, divided into four activities: Fabrication, $1,200,000; Assembly, $480,000; Setup, $400,000; and Materials Handling $320,000. Canine manufactures two products: Standard Crates and Deluxe Crates. The activity-base usage […]

99. Mallard Corporation uses the product cost concept of product pricing. Below is cost information for the production and sale of 45,000 units of its sole product. Mallard desires a profit equal to a 12% rate of return on invested […]

Chapter 25—Capital Investment Analysis Key 1. The process by which management plans, evaluates, and controls long-term investment decisions involving fixed assets is called capital investment analysis. 2. The process by which management plans, evaluates, and controls long-term investment decisions involving […]

104. Below is a table for the present value of $1 at Compound interest. Year 6% 10% 12% 1 .943 .909 .893 2 .890 .826 .797 3 .840 .751 .712 4 .792 .683 .636 5 .747 .621 .567 Below is […]

120. Income tax was $175,000 for the year. Income tax payable was $30,000 and $40,000 at the beginning and end of the year. Cash payments for income tax reported on the cash flow statement using the direct method is 121. […]

150. An analysis of the general ledger accounts indicates that equipment, with an original cost of $134,000 and accumulated depreciation of $105,000 on the date of sale, was sold for $20,000 during the year. Using this information, indicate the items […]

Chapter 14—Statement of Cash Flows Key 1. The statement of cash flows is not one of the basic financial statements. 2. Cash, as the term is used for the statement of cash flows, could indicate either cash or cash equivalents. […]

93. The budgeted cell conversion cost rate includes which of the following? 94. Schedule of Activity Costs Quality Control Activities Activity Cost Process audits $50,000 Training of machine operators 28,000 Processing returned products 19,000 Scrap processing (disposal) 25,000 Rework 8,000 […]

Chapter 27—Cost Management for Just-In-Time Environments Key 1. Just-in-Time (JIT) manufacturing focuses on reducing time, cost, and poor quality in processes. 2. The just-in-time (JIT) philosophy views inventory as a necessary buffer to protect against process problems. FALSE 3. The […]

176. For each of the following, journalize the necessary adjusting entry: (a) A business pays weekly salaries of $22,000 on Friday for a five-day week ending on that day. Journalize the necessary adjusting entry at the end of the fiscal […]

Chapter 3—The Adjusting Process Key 1. The system of accounting where revenues are recorded when they are earned and expenses are recorded when they are incurred is called the cash basis of accounting. 2. Generally accepted accounting principles require the […]

127. Which of the accounting steps in the accounting process below would be completed last? 128. When is the adjusted trial balance prepared? A. before adjusting journal entries are posted B. after adjusting journal entries are posted C. after the […]

174. Beachside Realty rents condominiums and furnishings. It’s adjusted trial balance at December 31, 2011, is as follows: Debit Balances Credit Balances Cash 1,500 Accounts Receivable 2,000 Interest Receivable 100 Prepaid Insurance 1,600 Notes Receivable (long-term) 2,800 Equipment 15,000 Accumulated […]

193. After all adjustments have been made, but before the accounts have been closed, the following balances were taken from the ledger of Ramona’s Designs: Accounts Payable $ 27,600 Rent Expense $ 32,700 Accounts Receivable 64,500 Salary Expense 41,390 Accumulated […]

120. Use the work sheet for Finley Company to answer the questions that follow. Finley Company Work Sheet For the Year Ended December 31, 2014 Adjusted Trial Balance Income Statement Balance Sheet Account Title Debit Credit Debit Credit Debit Credit […]

Chapter 4—Completing the Accounting Cycle Key 1. Cross-referencing is useful in assuring that the debits and credits are in balance. 2. When accounts do not appear on the unadjusted trial balance but are needed to post adjustments, they are simply […]

134. Anthony Company sold Madison Company merchandise on account FOB shipping point, 2/10, net 30, for $10,000. Anthony prepaid the $300 shipping charge. Which of the following entries does Anthony make to record this sale? 135. Emma Co. sold Isabella […]

214. Merchandise with a list price of $4,700 is purchased on account, terms FOB shipping point, 1/10, n/30. The seller prepaid freight costs of $100. Prior to payment, $1,400 of the merchandise is returned. The correct amount is paid within […]

Chapter 5—Accounting for Merchandising Businesses Key 1. One of the most important differences between a service business and a retail business is in what is sold. 2. In a merchandise business, sales minus operating expenses equals net income. FALSE 3. […]

198. Which of the following accounts would be included in the chart of accounts of a merchandising company using the: (a) periodic inventory system, (b) perpetual inventory system, or (c) both systems? (1) Sales Discounts (2) Merchandise Inventory (3) Sales […]

102. During the taking of its physical inventory on December 31, 2014, Barry’s Bike Shop incorrectly counted its inventory as $350,000 instead of the correct amount of $280,000. The effect on the balance sheet and income statement would be as […]

Chapter 6—Inventories Key 1. One of the two internal control procedures over inventory is to properly report inventory on the financial statements. 2. A purchase order establishes an initial record of the receipt of the inventory. FALSE 3. A perpetual […]

148. On the basis of the following data, determine the value of the inventory at the lower of cost or market. Apply lower of cost or market to each inventory item. Show your work. Item Inventory Quantity Unit Cost Price […]

156. The following data were gathered to use in reconciling the bank statement of Build-A-Lot: Balance per bank $14,355 Balance per company records 14,010 Bank service charges 80 Deposits in transit 4,100 NSF checks 775 Outstanding checks 5,300 Required: (1) […]

130. The following data were gathered to use in reconciling the bank account of Savannah Company: Balance per bank $16,750 Balance per company records 16,125 Bank service charges 80 Deposit in transit 2,195 NSF check 950 Outstanding checks 3,850 What […]

Chapter 7—Sarbanes-Oxley, Internal Control, and Cash Key 1. The Sarbanes-Oxley Act of 2002 was passed by Congress due to the public outcry after the financial scandals of the early 2000s. 2. Sarbanes-Oxley’s purpose is to improve financial reporting. FALSE 3. […]

141. Journalize the following transactions in the accounts of Simmons Company: Mar 1 Received a $60,000, 60-day, 6% note dated March 1 from Bynum Company on account. Mar 18 Received a $25,000, 60-day, 9% note dated March 18 from Solo […]

Chapter 8—Receivables Key 1. Notes Receivable and Accounts Receivable can also be called trade receivables. 2. Receivables not currently collectible are reported in the investments section of the balance sheet. TRUE 3. Trade receivables occur when two companies trade or […]

116. Discuss the similarities and differences between accounts receivables, notes receivables and other receivables. 117. List at least three things that indicate a receivable may be uncollectible. 1. The receivable is past due. 2. The customer does not respond to […]

Chapter 9—Fixed Assets and Intangible Assets Key 1. Long-lived assets that are intangible in nature, used in the operations of the business, and not held for sale in the ordinary course of business are called fixed assets. 2. The acquisition […]

132. What is the cost of the land, based upon the following data? Land purchase price $178,000 Broker’s commission 15,000 Payment for the demolition and removal of existing building 5,000 Cash received from the sale of materials salvaged from the […]

164. XYZ Co. incurred the following costs related to the office building used in operating its sports supply company: a. Replaced a broken window. b. Replaced the roof that had been on the building 23 years. c. Serviced all the […]

1) Using the job order cost system, service organizations are able to bill customers on a weekly or monthly basis, even when the job has not been completed. 2) Large batch sizes increase lead time. Answer: TRUE 3) Variable costs […]

1) If fixed costs are $850,000 and the unit contribution margin is $50, profit is zero when 15,000 units are sold. 2) Service firms can only have one activity base for analyzing changes in costs. Answer: FALSE 3) If a […]

1) A seller may grant a buyer a reduction in selling price and this is called a sales allowance. 2) One of the more popular defined contribution plans is the 401k plan. Answer: TRUE 3) If sinking fund cash is […]

1) The lowest contribution margin per scarce resource is the most profitable. 2) A bottleneck begins when demand for the companys product exceeds the ability to produce the product. Answer: TRUE 3) When using the direct write-off method off accounting […]

1) The ratio of fixed assets to long-term liabilities provides a measure of a firms ability to pay dividends. 2) Labor costs that are directly traceable to the product are part of factory overhead. Answer: FALSE 3) Paying an account […]

1) The normal balance of an expense account is a credit. 2) If, prior to the last weekly payroll period of the calendar year, the cumulative earnings for an employee are $98,800, earnings subject to social security tax are $100,000, […]

1) Closing entries are entered directly on to the work sheet. 2) The balance in a bond discount account should be reported on the balance sheet as a deduction from the related bonds payable. Answer: TRUE 3) Zero-coupon bonds do […]

1) When the goods are sold, their costs are transferred from Work in Process to Finished Goods. 2) Standard costs are a useful management tool that can be used solely as a statistical device apart from the ledger or they […]

1) For income tax purposes most companies use an accelerated deprecation method called double declining balance. 2) For a period during which the quantity of product manufactured equals the quantity sold, income from operations reported under absorption costing will be […]

1) The just-in-time (JIT) philosophy views inventory as a necessary buffer to protect against process problems. 2) In a push manufacturing system, raw materials are released to production based on forecasted demand. Answer: TRUE 3) The T account got its […]

1) The three common types of responsibility centers are referred to as cost centers, profit centers, and investment centers. 2) The Sarbanes-Oxley Act of 2002 was passed by Congress due to the public outcry after the financial scandals of the […]

1) The budgeted balance sheet assumes that all operating and financing plans are met. 2) The unadjusted, adjusted, and post-closing trial balances are the three types of trial balances prepared in an accounting cycle. Answer: TRUE 3) The factory superintendent’s […]

1) For a construction contractor, the wages of carpenters would be classified as factory overhead cost. 2) The anticipated purchase of a fixed asset for $400,000, with a useful life of 5 years and no residual value, is expected to […]

1) Prime costs are the combination of direct materials and direct labor costs. 2) The accounting for defined benefit plans is usually very easy and straight forward. Answer: FALSE 3) Separating the responsibilities for purchasing, receiving, and paying for equipment […]

1) Long setups and large batch sizes result in smaller inventories. 2) In calculating the present value of an investment in equipment, the present value of the terminal residual value should be added to the cash inflows. Answer: TRUE 3) […]

1) If the liabilities owed by a business total $300,000 and stockholders equity is equal to $300,000, then the assets also total $300,000. 2) Free cash flow is the measure of operating cash flow available for corporate purposes after providing […]

1) The unamortized Discount on Bonds Payable account is a contra-liability account. 2) Land acquired as a speculation is reported under Investments on the balance sheet. Answer: TRUE 3) Dividends decrease retained earnings and are listed on the income statement […]

1) The selection of the factory overhead allocation method is important because the method selected determines the accuracy of the product cost. 2) The revenue recognition concept states that revenue should be recorded in the same period as the cash […]

1) Before a stock dividend can be declared or paid, there must be sufficient cash. 2) Purchasing equipment by issuing a six-month note should be shown on the statement of cash flows under the investing activities section. Answer: FALSE 3) […]

1) Property taxes on a factory building would be included as part of the cost of products manufactured under the absorption costing concept. 2) Standard costs serve as a device for measuring efficiency. Answer: TRUE 3) If ending inventory for […]

1) Senior executives cannot be criminally prosecuted for the wrong doings they commit on behalf of the companies where they work. 2) The proceeds from discounting a $20,000, 60-day, note payable at 6% is $20,200. Answer: FALSE 3) The responsibility […]

1) A company pays an employee $3,000 for a five day work week, Monday – Friday. The adjusting entry on December 31, which is a Wednesday, is debit Wages Expense, $1,800 and credit Wages Payable, $1,800. 2) A firm selling […]

1) The matching concept requires expenses be recorded in the same period that the related revenue is recorded. 2) To determine the balance in a prepaid expense account, subtract credits from debits. Answer: FALSE 3) The amortization of a premium […]

1) The balance in Premium on Bonds Payable should be reported as a deduction from Bonds Payable on the balance sheet. 2) Any difference between the fair market values of the securities and their cost is a realized gain or […]