Elevate Your Grades: Semester Support for Accounting

Published: 11 months ago

Elevate Your Grades: Semester Support for Accounting

Accounting Questions Set 36

1. 31. Rounder Industries manufactures a single product. Variable production costs are $20 and fixed...

31. Rounder Industries manufactures a single product. Variable production costs are $20 and fixed production costs are $300,000. Rounder uses a normal activity of 20,000 units to set its standard costs. Rounder began the year with no inventory, produced 22,000 units, and sold 21,000 units. Ending inventory under variable costing would be

a. $20,000.

b. $30,000.

c. $35,000.

d. cannot be determined without further information.

32. Rounder Industries manufactures a single product. Variable production costs are $20 and fixed production costs are $300,000. Rounder uses a normal activity of 20,000 units to set its standard costs. Rounder began the year with no inventory, produced 22,000 units, and sold 21,000 units. Ending inventory under absorption costing would be

a. $20,000.

b. $30,000.

c. $35,000.

d. cannot be determined without further information.

33. Rounder Industries manufactures a single product. Variable production costs are $20 and fixed production costs are $300,000. Rounder uses a normal activity of 20,000 units to set its standard costs. Rounder began the year with no inventory, produced 22,000 units, and sold 21,000 units. The volume variance under variable costing would be

a. $0.

b. $20,000.

c. $30,000.

d. some other number.

34. Rounder Industries manufactures a single product. Variable production costs are $20 and fixed production costs are $300,000. Rounder uses a normal activity of 20,000 units to set its standard costs. Rounder began the year with no inventory, produced 22,000 units, and sold 21,000 units. The volume variance under absorption costing would be

a. $0.

b. $20,000.

c. $30,000.

d. some other number.

35. Rounder Industries manufactures a single product. Variable production costs are $20 and fixed production costs are $300,000. Rounder uses a normal activity of 20,000 units to set its standard costs. Rounder began the year with no inventory, produced 22,000 units, and sold 21,000 units. The standard cost of goods sold under variable costing would be

a. $400,000.

b. $420,000.

c. $735,000.

d. some other number.

36. Rounder Industries manufactures a single product. Variable production costs are $20 and fixed production costs are $300,000. Rounder uses a normal activity of 20,000 units to set its standard costs. Rounder began the year with no inventory, produced 22,000 units, and sold 21,000 units. The standard cost of goods sold under absorption costing would be

a. $400,000.

b. $420,000.

c. $735,000.

d. some other number.

37. Alpha Company has a standard fixed cost of $10 per unit. At an actual production of 16,000 units an unfavorable volume variance of $20,000 resulted. What were total budgeted fixed costs?

a. $140,000

b. $160,000

c. $180,000

d. Cannot be determined without further information.

38.Beta Company has a standard fixed cost of $10 per unit using a normal capacity of 11,000 units. An unfavorable volume variance of $12,000 resulted. What was the volume produced?

a. 9,800

b. 11,000

c. 12,200

d. Cannot be determined without further information.

39.Gamma Corporation has total budgeted fixed costs of $150,000. Actual production was 8,000 units; normal capacity is 7,500 units. What was the volume variance?

a. $10,000 favorable

b. $15,000 favorable

c. $15,000 unfavorable

d. $10,000 unfavorable

40.Eastern Co. has total budgeted fixed costs of $150,000. Actual production of 39,000 units resulted in a $6,000 favorable volume variance. What normal capacity was used to determine the fixed overhead rate?

a. 33,000

b. 37,500

c. 40,560

d. Cannot be determined without further information.

2. Haas Company is a retail company that specializes in selling outdoor camping equipment. The compa...

Haas Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, 2015. The company president fomed a planning committee to prepare a master budget for the first three months of operation. As budget coordinator, you have been assigned the following tasks Required a.&b. October sales are estimated to be $300,000 ofwhich 40 percent will be cash and 60 percent will be credit. The company expects sales to increase at the rate of 20 percent per month. The company expects to collect 100 percent ofthe accounts receivable generated by credit sales in the month following the sale. Prepare a sales budget and a schedule of cash receipts October November December Sales Budget Cash sales 120,000 172,800 144,000 180,000 259,200 Sales on account 216,000 S 300,000 S S 360,000 432,000 Total budgeted sales Schedule of Cash Receipts 144,000 120,000 Current cash sales 172.800 180,000 Plus collections from A/R 216,000 S 324,000 S 120,000 388,800 Total collections

3. 45) A business purchases equipment by paying $8,000 in cash and issuing a note payable of $12,000. W

45) A business purchases equipment by

paying $8,000 in cash and issuing a note payable of $12,000. Which of the

following occurs?

A) Cash is credited for $8,000, Equipment

is credited for $20,000, and Notes Payable is debited for $12,000.

B) Cash is credited for $8,000, Equipment

is debited for $20,000, and Notes Payable is credited for $12,000.

C) Cash is debited for $8,000, Equipment

is debited for $12,000,and Notes Payable is credited for $20,000.

D) Cash is debited for $8,000, Equipment

is credited for $12,000, and Notes Payable is debited for $4,000.

46) Which of the following journal entries

would be recorded if a business purchased $800 of office supplies on account?

A)

Accounts payable

800

Office Supplies

800

B)

Office Supplies

800

Accounts payable

800

C)

Office Supplies

800

Cash

800

D)

Cash

800

Office Supplies

800

47) Which of the following journal entries

would be recorded if a business renders service and receives cash of $900 from

the customer?

A)

Service revenue

900

Cash

900

B)

Service revenue

900

Accounts payable

900

C)

Cash

900

Service revenue

900

D)

Service revenue

900

Accounts receivable

900

48) Which of the following journal entries

would be recorded if a business makes a cash payment to a supplier of $750 on

account? (The business had purchased office supplies on account in the previous

month.)

A)

Cash

750

Accounts Payable

750

B)

Accounts Payable

750

Cash

750

C)

Cash

750

Office Supplies

750

D)

Accounts Payable

750

Office Supplies

750

49) Which of the following journal entries

would be recorded if Christy Jones Inc. issued stock to the public and received

$3000?

A)

Cash

3,000

Common Stock

3,000

B)

Accounts Payable

3,000

Cash

3,000

C)

Common Stock

3,000

Cash

3,000

D)

Common Stock

3,000

Accounts Payable

3,000

50) The following transactions for the

month of March have been journalized and posted to the proper accounts.

Mar. 1 The business received $9,000 cash and issued

common stock to stockholders.

Mar. 2 Paid the first month’s rent of $800.

Mar. 3 Purchased equipment by paying $3,000 cash and

executing a note payable for $5,000.

Mar. 4 Purchased office supplies for $750 cash.

Mar. 5 Billed a client for $10,000 of design services

completed.

Mar. 6 Received $8,000 on account for the services

previously recorded.

What is the balance in Cash?

A) $13,250

B) $12,450

C) $15,450

D) $14,000

4. Job costing, unit cost, ending work in process. Rafael Company

Job costing, unit cost, ending work in process. Rafael Company produces pipes for concert quality organs. Each job is unique. In April 2011, it completed all outstanding orders, and then, in May 2011, it worked on only two jobs, M1 and M2:



Direct manufacturing labor is paid at the rate of $26 per hour. Manufacturing overhead costs are allocated at a budgeted rate of $20 per direct manufacturing labor-hour. Only Job M1 was completed in May.

1. Calculate the total cost for Job M1. Required

2. 1,100 pipes were produced for Job M1. Calculate the cost per pipe.

3. Prepare the journal entry transferring Job M1 to finished goods.

4. What is the ending balance in the Work-in-Process Controlaccount?

5. Hart Company incurred the following costs on Job 109 for the manufacture of 200 motors. Original cos

Hart Company incurred the following costs on Job 109 for the manufacture of 200 motors.

The rework costs were attributable to the exacting specifications of Job 109, and the full rework costs were charged to this specific job. What is the cost per finished unit of Job 109?

A. $15.80

B. $14.60

C. $13.80

D. $13.30

6. On January 1, Guillen Corporation had 95,000 shares of no-par common stock issued and outstanding...

On January 1, Guillen Corporation had 95,000 shares of no-par common stock issued and outstanding. The stock has a stated value of $5 per share. During the year, the following occurred. Apr: 1 Issued 25,000 additional shares of common stock for $ 17 per share. June: 15 Declared a cash dividend of $1 per share to stockholders of record on June 30. July 10: Paid the $1 cash dividend. Dec: 1 Issued 2,000 additional shares of common stock for $ 19 per share. 15 Declared a cash dividend on outstanding shares of $ 1.20 per share to stockholders of record on December 31. Instructions Prepare the entries to record these transactions. How are dividends and dividends payable reported in the financial statements prepared at December 31?

7. A machine shop has 8 identical drilling machines manned by 6 operators. The machines cannot be...

A machine shop has 8 identical drilling machines manned by 6 operators. The machines cannot be worked without an operator wholly engaged on it. The original cost of all these 8 machines works out to be Rs 8,80,000. These particulars are furnished for a 6-month period

Repairs and maintenance including consumables of 3% on the value of a machine.

You are required to work out comprehensive MHR for the machine shop

8. Complete the Payroll Register for the February and March biweekly pay periods, assuming...

Continuing Payroll Project: Prevosti Farms and Sugarhouse Complete the Payroll Register for the February and March biweekly pay periods, assuming benefits went into effect as anticipated. Use the Wage Bracket Method Tables for Income Tax Withholding in Appendix C. Complete the General Journal entries as follows: February 10 Journalize the employee pay. February 10 Journalize the employer payroll tax for the February 10 pay period. Use 5.4 percent SUTA and 0.6 percent FUTA. No employees will exceed the FUTA or SUTA wage base. February 13 Issue the employee pay. February 24 Journalize the employee pay. February 24 Journalize the employer payroll tax for the February 24 pay period. Use 5.4 percent SUTA and 0.6 percent FUTA. No employee will exceed the FUTA or SUTA wage base.page 343 February 27 Issue the employee pay. March 10 Journalize employee pay. March 10 Journalize employer payroll tax for the March 10 pay period. Use 5.4% SUTA and 0.6% FUTA. No employees will exceed the FUTA or SUTA wage base. March 14 Issue employee pay. March 24 Journalize employee pay. March 24 Journalize employer payroll tax for the March 24 pay period. Use 5.4% SUTA and 0.6% FUTA. No employees will exceed FUTA or SUTA wage base. March 28 Issue employee pay. Post all journal entries to the appropriate General Ledger accounts. Account: Cash 101 Account: Employee Federal Income Tax Payable 203 Account: Social Security Tax Payable 204 Account: Medicare Tax Payable 205 page 345 Account: Employee State Income Tax Payable 206 Account: 401(k) Contributions Payable 208 Account: Health Insurance Payable 209 Account: Salaries and Wages Payable 210 Account: FUTA Tax Payable 211 page 346 Account: SUTA Tax Payable 212 Account: Payroll Taxes Expense 514 Account: Salaries and Wages Expense 515

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Continuing Payroll Project: Prevosti Farms and Sugarhouse Complete the Payroll Register for the February and March biweekly pay periods, assuming benefits went into effect as anticipated. Use the Wage Bracket Method Tables for Income Tax Withholding in  HYPERLINK "https://jigsaw.vitalsource.com/books/1260524787/epub/OEBPS/22_App_c.xhtml" Appendix C. Complete the General Journal entries as follows: February 10Journalize the employee pay.February 10Journalize the employer payroll tax for the February 10 pay period. Use 5.4 percent SUTA and 0.6 percent FUTA. No employees will exceed the FUTA or SUTA wage base.February 13Issue the employee pay.February 24Journalize the employee pay.February 24Journalize the employer payroll tax for the February 24 pay period. Use 5.4 percent SUTA and 0.6 percent FUTA. No employee will exceed the FUTA or SUTA wage base.page 343February 27Issue the employee pay.March 10Journalize employee pay.March 10Journalize employer payroll tax for the March 10 pay period. Use 5.4% SUTA and 0.6% FUTA. No employees will exceed the FUTA or SUTA wage base.March 14Issue employee pay.March 24Journalize employee pay.March 24Journalize employer payroll tax for the March 24 pay period. Use 5.4% SUTA and 0.6% FUTA. No employees will exceed FUTA or SUTA wage base.March 28Issue employee pay.Post all journal entries to the appropriate General Ledger accounts.   Account: Cash101Account: Employee Federal Income Tax Payable203Account: Social Security Tax Payable204Account: Medicare Tax Payable205page 345  Account: Employee State Income Tax Payable206Account: 401(k) Contributions Payable208Account: Health Insurance Payable209Account: Salaries and Wages Payable210Account: FUTA Tax Payable211page 346  Account: SUTA Tax Payable212Account: Payroll Taxes Expense514Account: Salaries and Wages Expense515

9. New Wave Images is a graphics design firm that prepares its financial statements using a calendar...

New Wave Images is a graphics design firm that prepares its financial statements using a calendar year. Manny Kinn, the company treasurer and vice president of finance, has prepared a classified balance sheet as of December 31. In January, this balance sheet will be submitted along with an application for a loan from First Peoples Community Bank. An excerpt from the balance sheet follows:

The accounts receivable balance includes a $56,000 loan to Tom Morrow, the company president. Tom borrowed the money from New Wave 18 months earlier for a down payment on a new home. Tom has orally assured Manny that he will pay off the loan within the next year. Because Tom is the company president, Manny treats the amount due as a trade account receivable. In addition, Manny knows that the bank will consider a large balance in trade accounts receivable more favorably than a large personal loan to a single individual. Manny reported the $56,000 in the same manner on the preceding year's balance sheet.

1. Is Manny behaving ethically by reporting the loan to Tom as a trade account receivable? Why?


2.  

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New Wave Images is a graphics design firm that prepares its financial statements using a calendar year. Manny Kinn, the company treasurer and vice president of finance, has prepared a classified balance sheet as of December 31. In January, this balance sheet will be submitted along with an application for a loan from First Peoples Community Bank. An excerpt from the balance sheet follows: The accounts receivable balance includes a $56,000 loan to Tom Morrow, the company president. Tom borrowed the money from New Wave 18 months earlier for a down payment on a new home. Tom has orally assured Manny that he will pay off the loan within the next year. Because Tom is the company president, Manny treats the amount due as a trade account receivable. In addition, Manny knows that the bank will consider a large balance in trade accounts receivable more favorably than a large personal loan to a single individual. Manny reported the $56,000 in the same manner on the preceding year's balance sheet. Is Manny behaving ethically by reporting the loan to Tom as a trade account receivable? Why? Who will be affected by Manny's decision? Complete this assignment as an essay using APA or MLA format. Your paper should have a cover page, 1-2 content pages, with an additional cover page (if using APA) and a reference page.