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1) The production of one unit of Product BJM used $27.50 of direct materials and
$21.00 of direct labor. The unit sold for $76.00 and was assigned overhead at a rate of
30% of labor costs. What is the gross profit per unit on its sale?
2) Define the partner return on equity ratio and explain how a specific partner would
use this ratio.
4) A company purchased store equipment for $4,300 by trading in old equipment with a
cost of $2,000 and that had accumulated depreciation of $1,900 as of the exchange date.
The company received a $75 trade-in allowance for the old equipment with the balance
of $4,225 paid in cash. Prepare the journal entry to record the exchange, assuming the
transaction had commercial substance.
5) Heintz Company's job order costing system applies overhead based on direct labor
costs. The company's manufacturing costs for the current year were: direct materials,
$108,000; direct labor, $144,000; and factory overhead, $36,000. At year-end, the total
cost of Work in Process is $38,000, which includes $12,000 of direct labor cost. What
amount of direct material cost is included in the ending Work in Process inventory?
6) ___________________________ are corrections of material errors in prior period
financial statements.
7) Waters, Inc. reported the following data regarding costs and inventories for the
current year: beginning finished goods inventory, $5,000; cost of goods manufactured,
$21,500; ending finished goods inventory, $4,000. Cost of goods sold for Waters, Inc.
equals ____________________.
8) Scotsland Company had the following transactions relating to investments in trading
securities during the year. Prepare the required general journal entries for these
transactions.
9) To increase an asset account we would _______________ it and to increase a
liability account, we would ______________ it.
10) The ___________________________, prepared by manufacturing firms, shows the
number of units to be produced in a period based on the unit sales projected in the sales
budget, along with inventory considerations.
