The following information relates to Woolf Unlimited for the past two years.
What is the inventory turnover for the current year?
A) 2.30 times
B) 0.78 times
C) 13.00 times
D) 2.20 times
Which of the following roles in an organization is responsible for the oversight of the
vice president of operations?
A) COO
B) Board of Directors
C) CFO
D) CEO
The managerial accountant at Organic Beverage Factory used spreadsheet software to
run a regression analysis scenario and compile the following monthly cost data:
Which of the following is the correct cost equation showing the correlation of monthly
costs, based on the results of the regression analysis compiled by the managerial
accountant?
A) y = $4,286,652 + $28.21
B) y = 0.6521x + $4,286,652
C) y = $0.6521 + $28.21x
D) y = $28.21x + $4,286,652
Ferrero Company reported the following information for the current year:
With respect to current year net sales revenue, what would a vertical analysis report?
A) COGS would be 15.00% of net sales revenue
B) A dividend yield of $8.20
C) A decrease of 10% in net sales revenue
D) Net sales revenue would be the base amount
The Stemple Corporation data for the current year:
What would a horizontal analysis report with respect to selling/general expenses show?
A) A 13.64% increase
B) Selling/general expenses as 7.39% of net sales revenue
C) A current ratio of 1.24
D) A 12% decrease
Which of the following cost of quality categories represent the cost incurred to rework a
product after the company detects a poor-quality product before the company delivers
the product to a consumer?
A) Lean production
B) Value added activity
C) Internal failure costs
D) External failure costs
The Hummel Corporation reported the following income statement and balance sheet
amounts and additional information for the end of the current year.
Inventory and prepaid expenses account for $28,000 of the current year’s current assets.
Average inventory for the current year is $12,000.
Average net accounts receivable for the current year is $32,000.
There are 40,000 shares of common stock outstanding.
Total dividends paid during the current year were $60,000.
The market price per share of common stock is $25.
What is the company’s current ratio for the current year?
A) 1.27
B) 2.55
C) 0.79
D) 0.35
The Stemple Corporation data for the current year:
What would a horizontal analysis report with respect to net income show?
A) Both net income before tax expense and net income are 9.16% of net sales revenue.
B) There was an increase in net income of 55.71%.
C) Both net income before income tax expense and net income increased by $89,500.
D) The current ratio is 1.24.
At Billy Distillery, direct materials are added at the beginning of the process and
conversion costs are added throughout the process. Data for the Finishing Department
follows:
Required:
a.What are the equivalent units for conversion costs?
b. What is the cost per equivalent unit for conversion costs?
c.What are the equivalent units for direct materials?
d.What are the total number of physical units for which to account?
The Stemple Corporation data for the current year:
What would a horizontal analysis report with respect to long-term liabilities show?
A) The debt ratio is 35.32%.
B) Long-term liabilities increased by 4.47%.
C) The current ratio is 1.24.
D) Long-term liabilities decreased by $(1,400).
The following is information about the units produced and the total manufacturing costs
for Rose’s Rug Company for the past six months.
Rose’s Rug Company uses the high-low method to estimate its costs. Answer the
following questions:
a.What is the variable cost per unit?
b.What is the monthly fixed manufacturing cost?
c.Write the cost equation that could be used to predict Rose’s Rug Company’s total
manufacturing costs.
d.What will the total monthly manufacturing costs be if the company produces 28,000
units?
