1) ebner corporation’s balance sheet and income statement appear below:
cash dividends were $37. the company sold equipment for $18 that was originally
purchased for $10 and that had accumulated depreciation of $9. the net cash provided
by (used by) investing activities for the year was:
a.$126
b.$18
c.($144)
d.($126)
2) data from gofman corporation’s most recent balance sheet appear below:
sales on account in year 2 amounted to $1,300 and the cost of goods sold was $900.
the current ratio at the end of year 2 is closest to:
a.0.32
b.0.72
c.2.78
d.0.23
3) boettner corporation produces and sells a single product. in april, the company sold
9,700 units. its total sales were $543,200, its total variable expenses were $329,800, and
its total fixed expenses were $182,200.
required:
a. construct the company’s contribution format income statement for april in good form.
b. redo the company’s contribution format income statement assuming that the company
sells 10,100 units.
4) jarmon company, which has only one product, has provided the following data
concerning its most recent month of operations:
the company produces the same number of units every month, although the sales in
units vary from month to month. the company’s variable costs per unit and total fixed
costs have been constant from month to month.
what is the unit product cost for the month under absorption costing?
a.$78
b.$73
c.$105
d.$110
5) eradicate company has $16,000 in cash, $8,000 in marketable securities, $29,000 in
account receivable, $30,000 in inventories, and $34,000 in current liabilities. the
company’s current assets consist of cash, marketable securities, accounts receivable, and
inventory. the company’s acid-test ratio is closest to:
a.0.85
b.2.44
c.1.56
d.1.32
6) worden hospital bases its budgets on patient-visits. the hospital’s static budget for
february appears below:
the total cost at the activity level of 4,600 patient-visits per month should be:
a.$153,720
b.$148,780
c.$153,220
d.$159,160
7) grundmann inc. reports that at an activity level of 6,500 machine-hours in a month,
its total variable inspection cost is $487,110 and its total fixed inspection cost is
$326,040.
what would be the total variable inspection cost at an activity level of 6,600
machine-hours in a month? assume that this level of activity is within the relevant
range.
a.$494,604
b.$331,056
c.$487,110
d.$813,150
8) wentz corporation has two operating divisions-a consumer division and a commercial
division. the company’s order fulfillment department provides services to both
divisions. the variable costs of the order fulfillment department are budgeted at $56 per
order. the order fulfillment department’s fixed costs are budgeted at $190,800 for the
year. the fixed costs of the order fulfillment department are determined based on the
peak period orders.
at the end of the year, actual order fulfillment department variable costs totaled
$206,640 and fixed costs totaled $202,680. the consumer division had a total of 1,240
orders and the commercial division had a total of 2,360 orders for the year. for purposes
of evaluation performance, how much order fulfillment department cost should be
charged to the commercial division at the end of the year?
a.$257,240
b.$246,640
c.$268,332
d.$257,072
9) lantagne corporation keeps careful track of the time required to fill orders. data
concerning a particular order appear below:
the throughput time was:
a.20.3 hours
b.25.2 hours
c.4.9 hours
d.12.1 hours
10) hards corporation had $38,000 of raw materials on hand on september 1. during the
month, the company purchased an additional $54,000 of raw materials. the journal entry
to record the purchase of raw materials would include a:
a.debit to raw materials of $54,000
b.debit to raw materials of $92,000
c.credit to raw materials of $92,000
d.credit to raw materials of $54,000