Excel in Accounting: Expert Help for Assignments and Quizzes

Published: 11 months ago

Excel in Accounting: Expert Help for Assignments and Quizzes

9. Calculate Sales Volume variance, Production volume, direct material cost

Calculation of actual quantities working backwards from variances

The following profit reconciliation statement summarizes the performance of one of SEWs products for March.

The budget for the same period contained the following data:

Additional information:

• Stocks of raw materials and finished goods are valued at standard cost.


• During the month the actual number of units produced was 1550.


• The actual sales revenue was £12 000.


• The direct materials purchased were 1000 kg.

Requited:

(a) Calculate

(i) The actual sales volume;

(ii) The actual quantity of materials used;

(iii) The actual direct material cost;

(iv) The actual direct labour hours;

(v) The actual direct labour cost;

(vi) The actual variable overhead cost;

(vii) The actual fixed overhead cost.

(b) Explain the possible causes of the direct materials usage variance, direct labour rate variance and sales volume variance.

`10. On January 2, 2017, Indian River Groves began construction of a new citrus processing plant. The automated plant was finished and ready for use on September 30, 2018. Expenditures for the construction were as follows:

Indian River Groves borrowed $3,300,000 on a construction loan at 12% interest on January 2, 2017. This loan was outstanding during the construction period. The company also had $12,000,000 in 9% bonds outstanding in 2017 and 2018.

82.     What were the weighted-average accumulated expenditures for 2017?

a.   $1,600,000

b.   $1,500,000

c.   $1,200,000

d.   $3,000,000

83.     The interest capitalized for 2017 was:

a.   $540,000

b.   $144,000

c.   $456,000

d.   $180,000

84.     What were the weighted-average accumulated expenditures for 2018 by the end of the construction period?

a.   $1,170,000

b.   $4,905,000

c.   $5,958,000

d.   $4,158,000

85.     The interest capitalized for 2018 was:

a.   $374,220

b.   $354,915

c.   $ 77,220

d.   $297,000

Please answer each one correctly and EXPLAIN your answers for a thumbs-up.

11. 51. The accounting equation can be restated as: Assets – Equity = Liabilities. True False 52. The...

51.

The accounting equation

can be restated as: Assets – Equity = Liabilities. True False

52.

The accounting equation

implies that: Assets + Liabilities = Equity. True False

53. Owner’s

investments are increases in equity from a company’s earnings activities. True

False

54. Every

business transaction leaves the accounting equation in balance.

True False

1-7

Chapter

01 – Accounting in Business

55.

An external transaction

is an exchange of value within an organization. True False

56. From

an accounting perspective, an event is a happening that affects the accounting

equation, but cannot be measured.

True False

57. Owner’s

equity is increased when cash is received from customers in payment of

previously recorded accounts receivable.

True False

58. An

owner’s investment in a business always creates an asset (cash), a liability

(note payable), and owner’s equity (investment.)

True False

59. Return

on assets is often stated in ratio form as the amount of average total assets

divided by income.

True False

60. Return

on assets is also known as return on investment.

True False

12. 11. Oswego Clay Pipe Company provides services of $46,000 to Southeast Water District #45 on...

11. Oswego Clay Pipe Company provides services of $46,000 to Southeast Water District #45 on April 12 of the current year with terms 1/15, n/60. What would Oswego record on April 12? 

A. 

B. 

C. 

D. 

12. Oswego Clay Pipe Company provides services of $46,000 to Southeast Water District #45 on April 12 of the current year with terms 1/15, n/60. What would Oswego record on April 23, assuming the customer made the correct payment on that date? 

A. 

B. 

C. 

D. 

13. Oswego Clay Pipe Company provides services of $46,000 to Southeast Water District #45 on April 12 of the current year with terms 1/15, n/60. What would Oswego record on June 10, assuming the customer made the correct payment on that date? 

A. 

B. 

C. 

D. 

14. Which of the following is recorded upon receipt of a payment on April 7, 2012, by a customer who pays a $900 invoice dated March 3, 2012, with terms 2/10, n/60? 

A. Debit Sales Discounts $18.

B. Credit Purchase Discounts $18.

C. Credit Accounts Receivable $882.

D. Debit Cash $900.

15. On July 8, Ray Inc. sold 100 printers to Office Rental Company at $600 each and offered a 2% discount for payment within 10 days. On July 15, Office Rental Company paid the full amount in cash. What should Ray Inc. record on July 15? 

A. 

B. 

C. 

D. 

16. Eric Company has the following information:



  



What is the amount of net revenues for Eric Company? 

A. $330,000.

B. $230,000.

C. $680,000.

D. $780,000.

17. On March 17, Jackal Lumber sold building materials to Fredo Limited for $15,000 with terms of 3/10, net 20. What amount did Jackal record as revenue on March 25 when Fredo paid for the building materials? 

A. $15,000.

B. $14,550.

C. $15,450.

D. $0.

18. Garber Plumbers offers a 20% trade discount when providing $2,000 or more of plumbing services to its customers. In March 2012, Garber provided $4,000 of plumbing services to Red Oak, Inc. and $1,500 of services to Cyril, Inc. Each of these customers was granted credit terms of 2/10, net 30. If both customers paid for the plumbing services within the discount period, what was the net sales figure for these two transactions? 

A. $5,500.

B. $4,312.

C. $4,486.

D. $4,606.

19. Boynton Jewelers reported the following amounts at the end of the year: total sales = $550,000; sales discounts = $12,000; sales returns = $44,000; sales allowances = $17,000. What was the company's net sales for the year? 

A. $489,000.

B. $485,000.

C. $477,000.

D. $499,000.

20. A company collects a customer's account within the discount period. Indicate how this transaction would affect the following five financial statement items:



  

 

A. Option a

B. Option b

C. Option c

D. Option d

13. Berol Company plans to sell 200,000 units of finished product in July of 2000 and anticipates a...

Berol Company plans to sell 200,000 units of finished product in July of 2000 and anticipates a growth rate in sales of 5% per month. The desired monthly ending inventory in units of finished product is 80% of the next month's estimated sales. There are 150,000 finished units in inventory on June 30, 2000.

Each unit of finished product requires four pounds of direct material at a cost of $1.20 per pound.

There are 800,000 pounds of direct material in inventory on June 30, 2000.

Berol Company's production requirement in units of finished product for the three month period ending September 30, 2000 is:

a) 712,025 units

b) 630,500 units

c) 664,000 units

d) 665,720 units

e) 862,025 units

14. Indicate whether each statement is cierto or falso based on the En detalle reading. Correct the...

Indicate whether each statement is cierto or falso based on the En detalle reading. Correct the false statements.

1 People from Spain don't like soccer.

 cierto

 falso

2 Madrid and Barcelona are the most important cities in Spain.

 cierto

 falso

3 Santiago Bernabéu is a stadium in Barcelona.

 cierto

 falso

4 The rivalry between Real Madrid and FC Barcelona is not only in soccer.

 cierto

 falso

5 Barcelona has resisted Madrid's centralized government.

 cierto

 falso

6 Only the FC Barcelona team was affected by the civil war.

 cierto

 falso

7 During Franco's regime, the Catalan culture thrived.

 cierto

 falso

8 There are many famous rivalries between soccer teams in the Spanish-speaking world.

 cierto

 falso

9 River Plate is a popular team from Argentina.

 cierto

 falso

10 Comunicaciones and Peñarol are famous rivals in Guatemala.

 cierto

 falso

15. 71.Which of the items below would appear in the Income Statement columns of the work sheet?...

71.Which of the items below would appear in the Income Statement columns of the work sheet?

a.Equipment

b.Unearned Fees

c.Prepaid Expense

d.Net Loss

72.Which of the accounts below would appear in the balance sheet columns of the worksheet?

a.Rent Earned

b.Dividends

c.Unearned Revenue

d.Dividends and Unearned Revenue

73.Which of the accounts below would appear in the Balance Sheet columns of the work sheet?

a.Service Revenue

b.Prepaid Rent

c.Supplies Expense

d.None are correct

74.The work sheet at the end of September has $4,000 in the Balance Sheet credit column for Accumulated Depreciation. The work sheet at the end of October has $4,750 in the Balance Sheet credit column for Accumulated Depreciation. What was the amount of the depreciation expense adjustment for the month of October?

a.amount can not be determined

b.$4,750

c.$4,000

d.$750

75.Which of the items below does not appear on the work sheet?

a.adjusting entries

b.the unadjusted trial balance

c.closing entries

d.dividends

76.An indication that the work sheet columns are in balance and the work sheet is completed is

a.the word "Total" is written at the bottom of each pair of columns

b.each pair of columns is double underlined

c.each pair of columns has the totals circled

d.the final figures are written in ink

77.After all of the account balances have been extended to the Balance Sheet columns of the work sheet, the totals of the debit and credit columns are $25,250 and $21,825, respectively. What is the amount of net income or net loss for the period?

a.$3,425 net income

b.$25,250 net loss

c.$3,425 net loss

d.$21,825 net income

78.After all of the account balances have been extended to the Income Statement columns of the work sheet, the totals of the debit and credit columns are $87,500 and $98,300, respectively. What is the amount of the net income or net loss for the period?

a.$10,800 net income

b.$10,800 net loss

c.$98,300 net income

d.$87,500 net loss

79.On October 1, the company pays rent for twelve months in advance and debits an asset account. At year end, the adjusting entry on the work sheet would

a.increase an expense account

b.decrease a liability account

c.increase an asset account

d.decrease an expense account

80.On August 1, a company collects revenue in advance for the next twelve months and credits a liability account. The adjusting entry at year end on the work sheet would

a.increase a liability account

b.decrease an asset account

c.decrease a revenue account

d.decrease a liability account

81.Which of the following is not an essential part of the accounting records?

a.The journal

b.The ledger

c.The chart of accounts

d.The work sheet

82.After totaling all of the columns in the work sheet, the Balance Sheet show debits of $35,678 and the credits of $39,901. This indicates that

a.neither net income or loss can be calculated because that is found on the income statement

b.the company recorded a net loss of $4,223

c.the company recorded a net income of $4,223

d.The amounts are out of balance and need to be corrected

83.The column of the income statement show the debits are equal to $56,899 and credits are $60,333. What do this information mean to the accountant?

a.Net income of $3,434

b.Net loss of $3,434

c.the accounts are out of balance

d.None are correct.

16. What quantity of good production was achieved?

A chemical process has a normal wastage of 10% of input. In a period, 2500 kgs of material were input and there was an abnormal loss of 75 kgs.

What quantity of good production was achieved?

A 2175 kg

B 2250 kg

C 2325 kg

D 2475 kg

17. Problem 9-47 Operating Budget, Comprehensive Analysis Allison Manufacturing produces a...

Problem 9-47 Operating Budget, Comprehensive Analysis

Allison Manufacturing produces a subassembly used in the production of jet aircraft engines. The assembly is sold to engine manufacturers and aircraft maintenance facilities. Projected sales in units for the coming five months follow:

The following data pertain to production policies and manufacturing specifications followed by Allison Manufacturing:

a.       Finished goods inventory on January 1 is 32,000 units, each costing $166.06. The desired ending inventory for each month is 80% of the next month’s sales.

(Continued)

b.       The data on materials used are as follows:

Direct Material                       Per-Unit Usage     Unit Cost ($)

Metal                                                 10 lbs.                       8

Components                                             6                        5

Inventory policy dictates that sufficient materials be on hand at the end of the month to produce 50% of the next month’s production needs. This is exactly the amount of material on hand on December 31 of the prior year.

c.        The direct labor used per unit of output is three hours. The average direct labor cost per hour is $14.25.

d.       Overhead each month is estimated using a flexible budget formula. (Note: Activity is meas- ured in direct labor hours.)

Fixed-Cost Component ($)

Variable-Cost Component ($)

e.        Monthly selling and administrative expenses are also estimated using a flexible budgeting formula. (Note: Activity is measured in units sold.)

Fixed Costs ($)

Variable Costs ($)

f.        The unit selling price of the subassembly is $205.

g.        All sales and purchases are for cash. The cash balance on January 1 equals $400,000. The firm requires a minimum ending balance of $50,000. If the firm develops a cash shortage by the end of the month, sufficient cash is borrowed to cover the shortage. Any cash borrowed is repaid at the end of the quarter, as is the interest due (cash borrowed at the end of the quarter is repaid at the end of the following quarter). The interest rate is 12% per annum. No money is owed at the beginning of January.

Required:

1.       Prepare a monthly operating budget for the first quarter with the following schedules. (Note: Assume that there is no change in work-in-process inventories.)

a.       Sales budget

b.       Production budget

c.        Direct materials purchases budget

d.       Direct labor budget

e.        Overhead budget

f.        Selling and administrative expenses budget

g.        Ending finished goods inventory budget

h.       Cost of goods sold budget

i.         Budgeted income statement

j.         Cash budget

2.       CONCEPTUAL CONNECTION Form a group with two or three other students. Locate a manufacturing plant in your community that has headquarters elsewhere. Interview the con- troller for the plant regarding the master budgeting process. Ask  when  the process starts each year, what schedules and budgets are prepared at the plant level, how the controller forecasts the amounts, and how those schedules and budgets fit in with the overall corporate

budget. Is the budgetary process participative? Also, find out how budgets are used for per- formance analysis. Write a summary of the interview.