ACCT 220: Compensating Talent: A Managerial Accounting

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ACCT 220: Compensating Talent: A Managerial Accounting

16. Midyear on July 31st, the Baldwin Corporation's balance sheet reported: Total Liabilities of $25.739

Midyear on July 31st, the Baldwin Corporation's balance sheet reported: Total Liabilities of $25.739 million Total Common Stock of $1.270 million Cash of $2.010 million Retained Earnings of $9.385 million. What were the Baldwin Corporation's total assets? Select: 1 $18.364 million $34.384 million $36.394 million $17.094 million

17. The following data are for the two products produced by Tadros Company Product A Product B 14 per...

The following data are for the two products produced by Tadros Company Product A Product B 14 per unit 27 per unit Direct materials Direct labor hours 0.3 DLH per unit 1.6 DLH per unit Machine hours 0.2 MH per unit 1.2 MH per unit 90 batches 180 batches Batches Volume 10,000 units 2,000 units Engineering modifications 11 modifications 55 modifications 500 customers 400 customers Number of customers 35 per unit 95 per unit Market price The company's direct labor rate is $20 per direct labor hour (DLH). Additional information follows. Costs Driver Indirect manufacturing 23,000 Engineering modifications Engineering support 22,000 Machine hours Electricity Setup costs 43,000 Batches Nonmanufacturing 72,000 Number of customers Customer service

18. Exercise 3-7 (Part Level Submission) Selected transactions for Front Room, an interior decorator ...

Exercise 3-7 (Part Level Submission) Selected transactions for Front Room, an interior decorator corporation, in its first month of business, are as follows. 1. Issued stock to investors for $14,600 in cash 2. Purchased used car for $10,500 cash for use in business 3. Purchased supplies on account for $300. 4. Billed customers $5,380 for services performed. 5. Paid $200 cash for advertising start of the business. 6. Received $1,730 cash from customers billed in transaction (4) 7. Paid creditor $300 cash on account 8. Paid dividends of $390 cash to stockholders. (a) Z Your answer is partially correct. Try again For each transaction indicate the basic type of account debited and credited (asset ability, stockholders' equity); the specific account debited and credited (Cash Rent Expense, Service Revenue, etc whether the specific account is increased or decreased; and the normal balance of the specific account Account Debited Account Credited Normal Normal Basic Type Specific Account Effect Basic Type Specific Account Effect No Balance Balance Cash Stockholders' Equity Common Stock Credit 1. Asset Increase Debit Increase Equipme Debit TT Liability Accounts Receivable Asset Supplies Increas Accounts Receivable Increase Increase Debt CIT Asset Cash Decrease Debt Asset IT Cash :TIncrease Debit TT Asset ccounts Receivabl Accounts Payable Decrease Stockholders' Equity a Dividends a 1ncrease Debit a Asset a Cash a TDecrease a Debit a

19. 1. If merchandise purchased on account is returned, the buyer may inform the seller of the...

1.        If merchandise purchased on account is returned, the buyer may inform the seller of the details by issuing a(n):

A.      debit memorandum

B.       credit memorandum

C.      invoice

D.      bill

20. U08a1

A machine costing $210,000 with a four- year life and an estimated $20,000 salvage value is installed in Calhoun Company's factory on January 1. The factory manager estimate the machine will produce 475,000 units of product durig its life. It actually produces the following units: year 1, 121, 400; year 2 , 122, 400; year 3 119,600; year 4, 118,200. The total number of units produced by the end of the year 4 exceeds the original estimate - this difference was not predicted. (The machine must not be depreciated below its estimated salvage value).

Prepare a table with the following column heading and compute depreciation for each year (and total depreciation of all years combined) for the machine under each depreciation method.

21. 21. The statement of cash flows includes all of the following categories EXCEPT (a) operating flows.

21. The

statement of cash flows includes all of the following categories EXCEPT

(a) operating flows.

(b) investment

flows.

(c) financing flows.

(d) equity

flows.

22. The

statement of cash flows provides a summary of the firm’s

(a) cash flows from operations.

(b) cash

inflows from financing.

(c) investment cash flows.

(d) changes

in the cash and marketable security accounts.

(e) all of the above.

23. All

of the following are inflows of cash EXCEPT

(a) a decrease in accounts receivable.

(b) net

profits after taxes.

(c) dividends.

(d) an

increase in accruals.

24. All of the following are outflows of cash

EXCEPT

(a) an increase in inventory.

(b) a

decrease in cash.

(c) dividends.

(d) a

decrease in notes payable.

25. Three

important components of the statement of cash flows that must be obtained from

the income statement include are all of the following EXCEPT

(a) depreciation and any non-cash

charges.

(b) interest

expenses.

(c) net profits after taxes.

(d) cash

dividends paid on both preferred and common stocks.

26. Cash

flows directly related to production and sale of the firm’s products and

services are called

(a) operating

flows.

(b) investment

flows.

(c) financing

flows.

(d) None

of the above.

27. Cash

flows associated with the purchase and sale of fixed assets and business

interests are called

(a) operating flows.

(b) investment

flows.

(c) financing flows.

(d) None

of the above.

28. Cash flows that result from debt and equity

financing transactions, including incurrence and repayment of debt, cash

inflows from the sale of stock, and cash outflows to pay cash dividends or

repurchase stock are called

(a) operating flows.

(b) investment

flows.

(c) financing flows.

(d) None

of the above.

29. Johnson,

Inc. has just ended the calendar year making a sale in the amount of $10,000 of

merchandise purchased during the year at a total cost of $7,000. Although the

firm paid in full for the merchandise during the year, it has yet to collect at

year end from the customer. The net profit and cash flow for the year are

(a) $3,000 and $10,000, respectively.

(b) $3,000

and –$7,000, respectively.

(c) $7,000 and –$3,000, respectively.

(d) $3,000

and $7,000, respectively.

30. A

firm has just ended the calendar year by selling $150,000 worth of merchandise

that was purchased during the year at a cost of $112,500. Although the firm

paid in full for the merchandise during the year, it has yet to collect on the

sale at year end. The net profit and cash flow for the year are

(a) $0 and $150,000, respectively.

(b) $37,500

and – $150,000, respectively.

(c) $37,500 and – $112,500,

respectively.

(d) $150,000

and $112,500, respectively.

22. 1. Which of the following is not an element of internal control? A. Control environment B....

1. Which of the following is not an element of internal control?

A. Control environment

B. Monitoring

C. Compliance with laws and regulations

D. Control procedures

23. Phoenix Company’s 2015 master budget included the following fixed budget report. It is based on...

24. The cost of an article at capacity level of 5,000 units is given under A below. For a variation of...

The cost of an article at capacity level of 5,000 units is given under A below. For a variation of 25% in capacity above or below this level, the individual expenses vary as indicated under B below:

Find the unit cost of the product under each individual expense at production levels of 4,000 units and 6,000 units.

25. _____ is closely related to corporate social responsibility. a. Downsizing b. Furloughing c....

_____ is closely related to corporate social responsibility.

a. Downsizing

b. Furloughing

c. Sustainability

d. Offshoring

26. Bergamo Bay's computer system generated the following trial balance on December 31, 2017. The com...

Bergamo Bay's computer system generated the following trial balance on December 31, 2017. The company’s manager knows something is wrong with the trial balance because it does not show any balance for Work in Process Inventory but does show a balance for the Factory Overhead account. In addition, the accrued factory payroll (Factory Payroll Payable) has not been recorded. e https://newconnect.mheducation.com/flow/connect.html Saved Bergamo Bay's computer system generated the following trial balance on December 31, 2017. The company's manager knows something is wrong with the trial balance because it does not show any balance for Work in Process Inventory but does show a balance for the Factory Overhead account. In addition, the accrued factory payroll (Factory Payroll Payable) has not been recorded. Debit Credit 61,836 48,88e 25,88e Cash Accounts receivable Raw materials inventory Work in process inventory Finished goods inventory Prepaid rent Accounts payable Notes payable Common stock Retained earnings Sales Cost of goods sold Factory)y Operating expenses Totals 12,eae 4,888 s 11,286 14, 28e 48,88e 94,88e 173,688 128,88e 27,88e 44,888 $333,eae $333,88e After examining various files, the manager identifies the following six source documents that need to be processed to bring the accounting records up to date. Materials requisition 21-3818 Materials requisition 21-3811 Materials requisition 21-3812 Labor time ticket 6852: Labor time ticket 6053 Labor time ticket 6854: $4,68e direct materials to Job 482 $7,9ae direct materials to Job 484 $2,488 indirect materials $3,880 direct labor to Job 482 $8,88e direct labor to Job 484 $4,88e indirect labor Jobs 402 and 404 are the only units in process at year-end. The predetermined overhead rate is 150% of direct labor cost. a. Direct materials costs to Work in Process Inventory. b. Direct labor costs to Work in Process Inventory c. Overhead costs to Work in Process Inventory. d. Indirect materials costs to the Factory Overhead account. e. Indirect labor costs to the Factory Overhead account.

27. debit balances are favorable and credit balances are unfavorable

/ Maria Alvarez, a beginning accounting student, believes debit balances are favorable and credit balances are unfavorable. Upon what does Maria make this assumption? If you choose one over the other, what is your rationale?

28. Unit 10 Cane Company manufactures two products called Alpha and Beta that sell for $120 and $80,

Cane Company manufactures two products called Alpha and Beta that sell for $120 and $80, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 100,000 units of each product. Its unit costs for each product at this level of activity are given below:

Alpha Beta

Direct Materials $30 $12

Direct labor $20 $15

Variable manufacturing overhead $7 $5

Traceable fixed manufacturing overhead $16 $18

Varaible selling expenses $12 $8

Common Fixed Expenses $15 $10

Total cost per unit $100 $68

The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are deemed unavoidable and have been allocated to products based on sales dollars.

Required:

1. What is the total amount of traceable fixed manufacturing overhead for the Alpha product line and for the Beta product line?

2. What is the company's total amount of common fixed expenses?

3. Assume that Cane expects to produce and sell 80,000 Alphas during the current year. One of Cane's sales representatives has found a new customer that is willing to buy 10,000 additional Alphas for a price of $80 per unit. If Cane accepts the customer's offer, how much will its profits increase or decrease?

4. Assume that Cane expects to produce 90,000 Betas during the current year. One of Cane's sales representatives has found a new customer that is willing to buy 5,000 additional Betas for a price of $39 per unit. If Cane accepts the customer's offer, how much will its profits increase or decrease?

5. Assume that Cane expects to produce and sell 95,000 Alphas during the current year. One of Cane's sales representatives has found a new customer that is willing to buy 10,000 additional Alphas for a price of $80 per unit. If Cane accepts the customer's offer, it will decrease Alpha sales to regular customers by 5,000 units. Should Cane accept this order?

6. Assume that Cane normally produces and sells 90,000 Betas per year. If Cane discontinues the Beta product line, how much will profits increase or decrease?

7. Assume that Cane normally produces and sells 40,000 Betas per year. If Cane discontinues the Beta product line, how much will profits increase or decrease?

8. Assume that Cane normally produces and sells 60,000 Betas and 80,000 Alphas per year. If Cane discontinues the Beta product line, its sales representatives could increase sales of Alpha by 15,000 unites. If Cane discontinues the Beta product line, how much would profits increase or decrease?

9. Assume that Cane expects to produce and sell 80.000 Alphas during the current year. A supplier has offered to manufacture and deliver 80,000 Alphas to Cane for a price of $80 per unit. If Cane buys 80,000 units from the supplier instead of making those units, how much will profits increase or decrease?

10. Assume that Cane expects to produce and sell 50.000 Alphas during the current year. A supplier has offered to manufacture and deliver 50,000 Alphas to Cane for a price of $80 per unit. If Cane buys 50,000 units from the supplier instead of making those units, how much will profits increase or decrease?

29. The Conservatism principle Concept directs an entity to consider recognizing a liability when it is

Complete the following sentence: The Conservatism Concept directs an entity to consider recognizing a liability when it is __________________.

 

• absolutely certain economic resources may be sacrificed in the future


• remotely possible economic resources may be sacrificed in the future


• reasonably possible economic resources may be sacrificed in the future


• reasonably certain economic resources may be sacrificed in the future

30. Multiple choice on Target profit

At a break-even point of 400 units sold, variable expenses were $4,000 and fixed expenses were $2,000. What will the 401st unit sold contribute to profit?

$0

$5

$10

$15



For your convinience, answer is 5$. My question is, how do you get that as an answer? I know Target Profit formula and how to get break-...