ACC1111 Financial Accounting I

Published: 1 year ago

ACC1111 Financial Accounting I

10. The following table provides data for output (real GDP) and saving. a. Fill in the missing numbe...

The following table provides data for output (real GDP) and saving. a. Fill in the missing numbers (gray shaded cells) in the table. In the table, round your answers to 3 decimal places. If you are entering any negative numbers be sure to include a negative

11. Lin Corporation has a single product whose selling price is $120 and whose variable expense is $80..

Lin Corporation has a single product whose selling price is $120 and whose variable expense is $80 per unit. The company’s monthly fixed expense is $50,000

1. Using the equation method, solve for the unit sales that are required to earn a target profit of $10,000

2. Using the format method, solve for the unit sales that are required to earn a target profit of $15,000



Mauro Products distributes a single product, a woven basket whose selling prices are $15 and whose variable expense is $12 per unit. The company’s monthly fixed expense is $4,200.

1. Solve for the company’s breakeven point in unit sales using the equation method.

2. Solve for the companies breakeven point in sales dollars using the equation method and the CM ratio.

3. Solve for the company’s breakeven point in unit sales using the format method

4. Solve for the company’s breakeven point in sales dollars using the format method and the cm ration.

 12. 31) The effort required to locate a suitable product is called: A) price discrimination. B) search..

31) The effort required to locate a suitable product is called:

A) price discrimination.

B) search costs.

C) menu costs.

D) shopping costs.

32) Information density refers to the:

A) richness-complexity and content-of a message.

B) total amount and quantity of information delivered to consumers by merchants.

C) total amount and quantity of information available to all market participants.

D) amount of information available to reduce price transparency.

33) Selling the same goods to different targeted groups at different prices is called:

A) cost customization.

B) cost optimization.

C) price gouging.

D) price discrimination.

34) Information ________ exists when one party in a transaction has more information that is important for the transaction than the other party.

A) transparency

B) asymmetry

C) complexity

D) discrimination

35) Which feature of Internet technology has had the most effect in the Internet's rapid spread across the globe?

A) Ubiquity

B) Global reach

C) Universal standards

D) Social technology

36) Varying a product's price according to the supply situation of the seller is called ________ pricing.

A) menu

B) flexible

C) dynamic

D) asymmetric

37) Reducing the business process layers in a distribution channel is called:

A) disintermediation.

B) BPR.

C) market segmentation.

D) network effects.

38) Digital goods are goods that are:

A) produced digitally.

B) sold over digital networks.

C) delivered digitally.

D) used with digital equipment.

39) Compared to digital markets, traditional markets have:

A) lower search costs.

B) stronger network effects.

C) higher delayed gratification effects.

D) higher transaction costs.

40) Compared to traditional goods, digital goods have:

A) greater pricing flexibility.

B) lower marketing costs.

C) higher production costs.

D)

13. Old Country links Inc. produces sausages in three production departments-Mixing, Casing and Curin...

Old Country links Inc. produces sausages in three production departments-Mixing, Casing and Curing, and Package. In the Mixing Department, meats are prepared and ground and then mixed with spices. The spiced meat mixture is then transferred to the Casing and Curing Department, where the mixture is force fed into casings and then hung and cured in climate-controlled smoking chambers. In the Packaging Department, the cured sausages are sorted, packed, and labeled. The company uses the weighted-average method in its process costing system. Data for September for the Casing and Curing Department follow: Mixing cost represents the costs of the spiced meat mixture transferred in from the Mixing Department. The spiced meat mixture is processed in the Casing and Curing Department in batches, each unit in the above table is a batch and one batch of spaced meat mixture produces a set amount of sausages that are passed on to the Packaging Department. During September, 148 batches (ie., units) were completed and transferred to the Packaging Department. Determine the total cost of ending work in progress inventory and the total cost of units transferred to the department in September. Cost of ending work in Progress Cost of units transfers

14. P2-4A The trial balance of Avtar Sandhu Co. shown below does not balance. AWTAR SANDHU CO Trial B...

P2-4A The trial balance of Avtar Sandhu Co. shown below does not balance. AWTAR SANDHU CO Trial Balance June 30, 2017 Debit Credit Cash 3,340 Accounts Receivable 2,812 Supplies 1,200 Equipment 2,600 Accounts Payable 3,666 Unearned Service Revenue 1,100 Owners Capital 8,000 Owner's Drawings 800 Service Revenue 2,480 Salaries and Wages Expense 3,200 Utilities Expense 810 $12,522 $17,486

15. Analyzing manufacturing cost accounts Fire Rock Company manufactures designer paddle boards in a...

Analyzing manufacturing cost accounts

Fire Rock Company manufactures designer paddle boards in a wide variety of sizes and styles. The following incomplete ledger accounts refer to transactions that are summarized for June:

Materials

(A)

Work in Process

Finished Goods

Wages Payable

Factory Overhead

In addition, the following information is available:

a. Materials and direct labor were applied to six jobs in June:

b. Factory overhead is applied to each job at a rate of 140% of direct labor cost.

c. The June 1 Work in Process balance consisted of two jobs, as follows:

Work in Process,

d. Customer jobs completed and units sold in June were as follows:

Instructions

1. Determine the missing amounts associated with each letter. Provide supporting calcu­ lations by completing a table with the following headings:

2. Determine the June 30 balances for each of the inventory accounts and factory overhead

16. South River Chemical manufactures a product called Zbek. Direct materials are added at the beginn...

South River Chemical manufactures a product called Zbek. Direct materials are added at the beginning of the process, and conversion activity occurs uniformly throughout production. The beginning work in process inventory is 60% complete with respect to conversion; the ending inventory work in process inventory is 20% complete. The following data pertain to May: Compute the following amounts: Using the weighted-average method of process costing, determine the equivalent units for direct material and conversion. What is the cost per unit of direct material and conversion activity? Determine the cost of the goods completed and transferred out during May. Determine the cost of the ending work in process on May 31.

17. Dyna Distribution markets CDs of the performing artist King James. At the beginning March,...

P6.2 (LO 2) Dyna Distribution markets CDs of the performing artist King James. At the beginning March, Dyna had in beginning inventory 1,500 King James CDs with a unit cost of €7. During MagIL Dyna made the following purchases of King James CDs.

March 5 3,500 @ €8 March 21 2,000 @ €10 March 13 4,000 @ €9 March 26 2,000 @ €11

During March, 10,000 units were sold. Dyna uses a periodic inventory system. Instructions a. Determine the cost of goods available for sale. b. Determine (0 the ending inventory and (2) the cost of goods sold under the two assumed costtl; methods (FIFO and average-cost). Prove the accuracy of the cost of goods sold under the FIFO average-cost methods.

18. For the following four unrelated situations, A through D, calculate the unknown amounts appearing in

For the following four unrelated situations, A through D, calculate the unknown amounts appearing in each column:

19. Larkin Company produces golf discs which it normally sells to retailers for $6 each. The cost of...

20. Bank Reconciliation The following data were gathered to use in reconciling the bank account of Mc...

Bank Reconciliation The following data were gathered to use in reconciling the bank account of McCurdy Company: Balance per bank Balance per company records Bank service charges Deposit in transit Note collected by bank with $120 interest 5,450 Outstanding checks a. What is the adjusted balance on the bank reconciliation? $17,900 8,605 45 3,150 7,040 14,010 b. Journalize any necessary entries for McCurdy Company based on the bank reconciliation. For a compound transaction, if an amount box does not require an entry, leave it blank. Accounts Receivable Miscellaneous Expense Cash ccounting numeric field Check My Work 2 more Check hly Work uses remaining 2 more Check My Work uses remaining Previous Next

21. Budgeted performance is a better criterion than past performance

Budgeted performance is a better criterion than past performance for judging managers do you agrees? Explain.

22. The terms debit and credit mean “increase” and “decrease,” respectively.

The terms debit and credit mean “increase” and “decrease,” respectively. Do you agree? Explain.

23. 41) Creditors are most concerned with assessing: A) dividends and future share prices B)...

41) Creditors are most concerned with assessing:

A) dividends and future share prices

B) earnings-per-share

C) short-term liquidity

D) gross margin percentages

42) Creditors and investors use financial statement analysis to:

A) predict the amount of expected returns and assess the risks associated with those returns

B) evaluate the company's shares

C) evaluate the company's dividend payment record

D) predict the company's price/earnings ratio

43) The tools and techniques used to analyze financial statements are divided into broad categories including all the following except:

A) liquidity analysis

B) vertical analysis

C) horizontal analysis

D) ratio analysis

44) Horizontal analysis involves the study of:

A) the changes in individual financial statement amounts as a percentage of some related total

B) percentage changes in various financial statement amounts from year to year

C) the change in key financial statement ratios over a certain time frame or horizon

D) the relationship of one financial statement amount to another in the same year

45) The percentage change in any individual item shown on comparative financial statements is calculated by dividing the dollar amount of the change from the base period to the current period by:

A) the amount shown for the current period

B) the base-period amount

C) the average of the amounts shown for the base and the current periods

D) 100

46) The fact that cost of goods sold decreased by $20,000 from 2009 to 2010 would most likely be revealed by:

A) trend analysis

B) horizontal analysis

C) vertical analysis

D) ratio analysis

47) The fact that cost of goods sold for the current year is 150% of the amount shown for a base year would most likely have been revealed using:

A) trend analysis

B) vertical analysis

C) profitability analysis

D) ratio analysis

24. Worley Company buys surgical supplies from a variety of manufacturers and then resells and delive...

Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 8%. For example, if a hospital buys supplies from Worley that had cost Worley $100 to buy from manufacturers, Worley would charge the hospital $108 to purchase these supplies For years, Worley believed that the 8% markup covered its selling and administrative expenses and provided a reasonable profit. However, in the face of declining profits Worley decided to implement an activity-based costing system to help improve its understanding of customer profitability. The company broke its selling and administrative expenses into five activities as shown below Activity Cost Pool (Activity Measure) Total Cost Total Activity Customer deliveries (Number of deliveries) 356,000 4,000 deliveries Manual order processing (Number of manual orders) 511,000 7,000 orders Electronic order processing (Number of electronic orders) 338,000 13,000 orders Line item picking (Number of line items picked) 1,056,000 480,000 line items Other organization-sustaining costs (None) 610,000 Total selling and administrative expenses 2,871,000 Worley gathered the data below for two of the many hospitals that it serves-University and Memorial (both hospitals purchased a total quantity of medical supplies that had cost Worley $37,000 to buy from its manufacturers) Activity Activity Measure University Memorial Number of deliveries 29 Number of manual orders 40 Number of electronic orders 18 240 Number of line items picked 190 Required: 1. Compute the total revenue that Worley would receive from University and Memorial Total Revenue University Memorial

25. For each of the following specific audit procedures, indicate the type of audit procedure(s) it represents: (1) inspection of records or documents, (2) inspection of tangible assets, (3) observation, (4) inquiry, (5) confirmation, (6) recalculation, (7) reperformance, (8) analytical procedures, (9) scanning, (1/7), and (9/7).





a. Sending a written request to the client's customers requesting that they report the amount owed to the client.



b. Examining large sales invoices for a period of two days before and after year-end to determine if sales are recorded in the proper period.



c. Agreeing the total of the accounts receivable subsidiary ledger to the accounts receivable general ledger account.



d. Discussing the adequacy of the allowance for doubtful accounts with the credit manager.



e. Comparing the current-year gross profit percentage with the gross profit percentage for the last four years.



f. Examining a new plastic extrusion machine to ensure that this major acquisition was received.



g. Watching the client's warehouse personnel count the raw materials inventory.



h. Performing test counts of the warehouse personnel's count of the raw material.



i. Obtaining a letter from the client's attorney indicating that there were no lawsuits in progress against the client.



j. Tracing the prices used by the client's billing program for pricing sales invoices to the client's approved price list.



k. Reviewing the general ledger for unusual adjusting entries.

25. --variances

Question 16 (3 points)



Poorly trained workers could have an unfavorable effect on which of the following variances?

Labor rate variance = Yes; Materials quantity variance = Yes

Labor rate variance = Yes; Materials quantity variance = No

Labor rate variance = No; Materials quantity variance = Yes

Labor ra...