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Winter Accounting Dissertation Help
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Accounting Questions Set 791. Gabert Inc. is a merchandising company. Last month the company"s merchandise purchases totaled...
Gabert Inc. is a merchandising company. Last month the company"s merchandise purchases totaled $68,000. The company"s beginning merchandise inventory was $17,000 and its ending merchandise inventory was $13,000. What was the company"s cost of goods sold for the month?
A) $72,000
B) $68,000
C) $98,000
D) $64,000
2. if all entries had been made correctly during the year the Manufacturing Overhead account would have...
In reviewing the accounting records at year-end, Garff Company"s accountant has determined that the following items and amounts were debited to the Manufacturing Overhead account during the year:
Factory supervisor’s salary $8,000
Sales commissions $7,000
Vacation pay for the materials storeroom clerk $2,000
Including the items listed above, the debits to the Manufacturing Overhead account totaled $245,000 for the year. Credits to the account totaled $240,000 for the year. Based on this information, if all entries had been made correctly during the year the Manufacturing Overhead account would have been:
A) overapplied by $4,000
B) overapplied by $12,000
C) underapplied by $5,000
D) overapplied by $2,000
3. Ironjay, Inc., produces two types of weight-training equipment:
Ironjay, Inc., produces two types of weight-training equipment: the jay-flex (a weight machine that allows the user to perform a number of different exercises) and a set of free weights. Ironjay sells the jay-flex to sporting goods stores for $200. The free weights sell for $75 per set. The projected income statement for the coming year follows:
Sales ……………………….$600,000
Less: Variable expenses …….390,000
Contribution margin ………$210,000
Less: Fixed expenses ……….157,500
Operating income ………….$ 52,500
The owner of Ironjay estimates that 40 percent of the sales revenues will be produced by sales of the jay-flex, with the remaining 60 percent by free weights. The jay-flex is also responsible for 40 percent of the variable expenses. Of the fixed expenses, one-third are common to both products, and one-half are directly traceable to the jay-flex line.
Required:
1. Compute the sales revenue that must be earned for Ironjay to break even.
2. Compute the number of jay-flex machines and free weight sets that must be sold for Ironjay to break even.
3. Compute the degree of operating leverage for Ironjay. Now, assume that the actual revenues will be 40 percent higher than the projected revenues. By what percentage will profits increase with this change in sales volume?
4. Ironjay is considering adding a new product—the jay-rider. The jay-rider is a cross between a rowing machine and a stationary bicycle (like the Nordic rider?c). For the first year, Ironjay estimates that the jay-rider will cannibalize 600 units of sales from the jay-flex. Sales of free weight sets will remain unchanged. The jay-rider will sell for $180 and have variable costs of $140. The increase in fixed costs to support manufacture of this product is $5,700. Compute the number of jay-flex machines, free weight sets, and jay-riders that must be sold for Ironjay to break even. For the coming year, is the addition of the jay-rider a good idea? Why or why not? Why might Ironjay choose to add the jay-rider anyway?
4. Multiple choice
1. Compliance based ethics codes typically:
A. rely on laws and regulations outside the firm for guidance.
B. have a strong affinity for shared accountability among employees.
C. promote a "do-it-right" climate.
D. enable responsible employee conduct.
Compliance-based ethics codes prevent unlawful behavior by increasing control and by penalizing wrongdoers.
2. What is the benefit of employing an ethics officer
A. This professional serves as a law-enforcement officer, with the authority to arrest employees who do not abide by the ethics code.
B. This individual writes the ethics code and keeps this document current. He has sole authority to change the document as he sees fit.
C. This professional has the responsibility to make certain that the ethics code remains a private company document; however, since the position has very little authority, it becomes a token job with high turnover.
D. This individual's job is dedicated to objectively investigating ethics breaches. If necessary, employees feel comfortable with communicating confidentially to this professional.
3. While speaking with his sales force, the director of sales explains, "Anyone caught violating a sales law will be fired." After studying business ethics, you recognize this remark as a reference to the firm's __________ ethics.
A. technology-based
B. personal responsibility-based
C. compliance-based
D. integrity-based
4. In an effort to promote the importance of a valuable education, the faculty and staff at the local community college are trained to ask each student about their career preferences, rather than suggest courses that may not benefit the student's future goals. Although it would be tempting to suggest courses just to increase the College's enrollment, employees know that it is more important to serve each student well, even if it means suggesting courses and/or degrees offered at other institutions. This approach is consistent with:
A. an integrity-based ethics code.
B. a compliance-based ethics code.
C. a response to a government mandate.
D. a personal responsibility commitment.
5. The following two events occurred for Trey Co. on October 31. 2016, the end or its fiscal year. ...
The following two events occurred for Trey Co. on October 31. 2016, the end or its fiscal year. Trey rents a building Its owner for $2.800 per month. By prearrangement, the company delayed paying October's rent until November 5, on this date, the company paid the rent for both October and November Trey rents space in a building it owns to a tenant for $850 per month. By prearrangement, the tenant delayed paying the October rent until November 8. On this date, the tenant paid the rent for both October and November Prepare adjusting entries that the company must record for these events as of October 31.
6. Which one of the following is not a characteristic generally evaluated in ratio analysis? Choose...
Which one of the following is not a characteristic generally evaluated in ratio analysis?
Choose one answer.
a. liquidity
b. profitability
c. solvency
d. marketability
7. The following is an extract of the record of receipt and issues of sulphur in a chemical factory...
The following is an extract of the record of receipt and issues of sulphur in a chemical factory during February:
1 Opening balance 500 tons @ Rs.200
3 Issued 70 tons
4 Issued 100 tons
8 Issued 80 tons
13 Received from supplier 200 tons @ Rs.190
14 Returned from Deptt. 15 tons
16 Issued 180 tons
20 Received from supplier 240 tons @ Rs.190
24 Issued 300 tons
25 Received from supplier 320 tons @ Rs.190
26 Issued 115 tons
27 Returned from Deptt. 35 tons
28 Received from supplier 100 tons @ Rs.190
Issues are to be priced on the principle of „First-in First-out?. The stock verifiers of the factory had found a shortage of 10 tons on the 22nd and left a note accordingly. Draw up a priced stores ledger card for the material showing the above transactions.
8. Question As inventory and PPE assets on the balance sheet are consumed, they are reflected: Select..
Question
As inventory and PPE assets on the balance sheet are consumed, they are reflected: Select one: O A. As a revenue on the income statement O B. As an expense on the income statement O C. As a cash flow outflow on the Statement of Cash flows D. Both Band C O E. Assets are never consumed. During fiscal 2016, Shoe Productions recorded inventory purchases on credit of $337.8 million. The financial statement effect of these purchase transactions would be to: Select one: O A. Increase liabilities (Accounts payable) by $337.8 milliorn O B. Decrease cash by $337.8 million OC. Increase expenses (Cost of goods sold) by $337.8 million D. Decrease noncash assets (Inventory) by $337.8 million O E. Both A and D
9. Is this work correct? In early January 2017, NewTech purchases computer equipment for $270,000 to us
equipment for $270,000 to use in operating activities for the next four years. It estimates the equipment's salvage value at $31,000. Prepare a table showing depreciation and book value for each of the four years assuming double-declining-balance depreciation. (Enter all amounts positive values.) Depreciation for the Period End of Period Year-End Book Value Beginning-Year Depreciation Book Value Annual Depreciation Accumulated Year Depreciation Rate 1,350,000 $ 135,000 135,000 $ 270,000 50% 2017 202,500 67,500 67,500 135,000 50% 2018 236,250 33,750 33,750 67,500 50% 2019 31,000 239,000 2,750 50% 2020 33,750 239,000 S Total
10. (Capitalizatio n o f Interest ) On July 31, 2014, Amsterdam Company engaged Minsk Tooling Com pany
(Capitalizatio n o f Interest ) On July 31, 2014, Amsterdam Company engaged Minsk Tooling
Com pany to const r uct a special-purpose piece of factory machiner y . Const r uction was begun immediately
and was completed on November 1, 2014. To help finance construction, on July 31 Amsterdam issued a
$300,000, 3-yea r , 12% note payable at Netherlands National Bank, on which inte r est is payable each July 31.
$200,000 of the p r oceeds of the note was paid to Minsk on July 31. The r emainder of the p r oceeds was tem-
porarily invested in short-term marketable securities (trading securities) at 10% until November 1. On
November 1, Amste r dam made a final $100,000 payment to Minsk. Other than the note to Netherlands,
Amste r dam’s only outstanding liability at December 31, 2014, is a $30,000, 8%, 6-year note payable, dated
January 1, 20 1 1, on which inte r est is payable each December 31.
Instructions
(a) Calculate the interest revenue, weighted-average accumulated expenditures, avoidable interest, and total interest cost to be capitalized during 2014. (Round all computations to the nearest dollar.)
(b) Prepare the journal entries needed on the books of Amsterdam Company at each of the following dates.
(1) July 31, 2014.
(2) November 1, 2014.
(3) December 31, 2014.
11. Value: 1.53 points Karla Tanner opens a Web consulting business called Linkworks and completes th...
value: 1.53 points Karla Tanner opens a Web consulting business called Linkworks and completes the following transactions in its first month of operations. April 1 Tanner invests $130,000 cash along office equipment valued at $31.200 in the company in with exchange for common stock. 2 The company prepaid $7,200 cash for twelve months' rent for office space. (Hint Debit Prepaid for $7,200.) 3 The company made credit purchases for $15,600 in office equipment and $3,120 in office supplies. Payment is due within 10 days. 6 The company completed services for a client and immediately received s2,000 cash. 9 The company completed a $10,400 project for a client, who must pay within 30 days. 13 The company paid $18,720 cash to settle the account payable created on April 3. 19 The company paid $6,000 cash for the premium on a 12-month insurance policy. (Hint Debit Prepaid Insurance $6,000.) 22 The company received $8.320 cash as partial payment for the work completed on April 9 25 The company completed work for another client for $2.640 on credit. 28 The company paid $6,200 cash in dividends. 29 The company purchased $1,040 of additional office supplies on credit. 30 The company paid $700 cash for this month's utility bill Required: 1. Prepare general journal entries to record these transactions using the following titles: Cash (101) Accounts Receivable (106); Office Supplies (124) Prepaid Insurance (128), Prepaid Rent (131): Office Payable (201): Common Stock (307) Dividends (319) Services Revenue (403); and Utilities Expense
12. Problem 21-5A (Part Level Submission) Brislin Company has four operating divisions. During the fi...
Problem 21-5A (Part Level Submission)
Brislin Company has four operating divisions. During the first quarter of 2017, the company reported aggregate income from operations of $213,000 and the following divisional results.
Division Sales $250,000 $200,000 $500,000 $450,000 Cost of goods sold 200,000 192,000 300,000 250,000 Selling and administrative expenses 75,000 60,000 60,000 50,000 Income (loss) from operations (25,000) (52,000) $140,000 $150,000 Analysis reveals the following percentages of variable costs in each division. III IV Cost of goods sold 70 90% 80 75 Selling and administrative expenses 40 60 50 60 Discontinuance of any division would save 50% of the fixed costs and expenses for that division Top management is very concerned about the unprofitable divisions (I and II). Consensus is that one or both of the divisions should be discontinued. (a) You answer is correct. Compute the contribution margin for Divisions I and II. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Division I Division II Contribution margin T 80000 8800
13. Value-Chain Analysis Sheldon Radio manufactures yacht radios, navigational equipment, and depth-
37. Value-Chain Analysis Sheldon Radio manufactures yacht radios, navigational equipment, and depth- sounding and related equipment from a small plant near New Bern, North Carolina. One of Sheldon’s most popular products, making up 40 percent of its revenues and 35 percent of its profits, is a marine radio, model VF4500, which is installed on many of the new large boats produced in the United States. Production and sales average 500 units per month. Sheldon has achieved its success in the market through excellent customer service and product reliability. The manufacturing process consists primarily of the assembly of components purchased from various electronics firms plus a small amount of metalworking and finishing. The manufacturing operations cost $110 per unit. The purchased parts cost Sheldon $250, of which $130 is for parts that Sheldon could manufacture in its existing facility for $80 in materials for each unit plus an investment in labor and equipment that would cost $35,000 per month.
Sheldon is considering outsourcing the marketing, distributing, and servicing for its units to an- other North Carolina firm, Brashear Enterprises. This would save Sheldon $125,000 in monthly ma- terials and labor costs. The cost of the contract would be $105 per radio.
Required
1. Prepare a value-chain analysis for Sheldon to assist in deciding whether to purchase or manufacture the parts and whether to contract out the marketing, distributing, and servicing of the units.
2. Should Sheldon (a) continue to purchase the parts or manufacture them and (b) continue to provide the marketing, distributing, and servicing or outsource these activities to Brashear? Explain your answer.
14. The Allen Company is a wholesale distributor of automotive replacement parts. Initial amounts taken.
The Allen Company is a wholesale distributor of automotive replacement parts. Initial amounts taken from Allen’s accounting records are as follows: Inventory at December 31, 2007 (based on physicalcount of goods in Allen’s warehouse on December 31, 2007) … $1,250,000Sales in 2007……………………….. $9,000,000Accounts payable at December 31, 2007:Additional information is as follows:1. Parts held on consignment from Charlie to Allen, the consignee, amounting to $155,000, were included in the physical count of goods in Allen’s warehouse on December 31, 2007 and in accounts payable at December 31, 2007.2. $22,000 of parts, which were purchased from Full and paid for in December 2007 were sold in the last week of 2007 and appropriately recorded as sales of $28,000. The parts were included in the physical count of goods in Allen’s warehouse on December 31, 2007 because the parts were on the loading dock waiting to be picked up by customers.3. Parts in transit on December 31, 2007 to customers, shipped FOB shipping point on December 28, 2007, amounted to $34,000. The customers received the parts on January 7, 2008. Sales of $40,000 to the customers for the parts were recorded by Allen on January 3, 2008.4. Retailers were holding $210,000 at cost ($250,000 at retail) of goods on consignment from Allen, the consignor, at their stores on December 31, 2007.5. Goods were in transit from Greg to Allen on December 31, 2007. The cost of the goods was $25,000, and they were shipped FOB shipping point on December 29, 2007.6. A quarterly freight bill in the amount of $2,000 specifically relating to merchandise purchases in December 2007, all of which was still in the inventory at December 31, 2007, was received on January 4, 2008. The freight bill was not included in either the inventory or in accounts payable at December 31, 2007.7. All of the purchases from Baker occurred during the last seven days of the year. These items have been recorded in accounts payable and accounted for in the physical inventory at cost before discount. Allen’s policy is to pay invoices in time to take advantage of all cash discounts, adjust inventory accordingly, and record accounts payable, net of cash discounts.RequiredPrepare a schedule of adjustments to the initial amounts of inventory, accounts payable, and sales. Show the effect, if any, of each of the transactions separately and indicate if the transactions would have no effect on theamount.
View Solution:
The Allen Company is a wholesale distributor of automotive repla
15. Harris Company manufactures and sells a single product. Required: 1. A partially com...
Harris Company manufactures and sells a single product.
Required:
1. A partially completed schedule of the company’s total and per unit costs over the relevant range of 63,000 to 103,000 units produced and sold annually is given below: Complete the schedule of the company’s total and unit costs. (Round the variable cost and fixed cost to 2 decimal places.)
Units Produced and Sold
63,000 83,000 103,000
Total costs:
Variable costs $226,800
Fixed costs 430,000
Total costs $656,800 $0 $0
Cost per unit:
Variable cost
Fixed cost
Total cost per unit $0.00 $0.00 $0.00
2. Assume that the company produces and sells 93,000 units during the year at a selling price of $9.78 per unit. Prepare a contribution format income statement for the year.
Harris Company
Contribution Format Income Statement
Cost of goods sold
16. Entity A had a plantation forest that is likely to be harvested and sold in 30 years.
Entity A had a plantation forest that is likely to be harvested and sold in 30 years. The income should be accounted for in the following way:
(a) No income should be reported until first harvest and sale in 30 years.
(b) Income should be measured annually and reported using a fair value approach that recognizes and measures biological growth.
(c) The eventual sale proceeds should be estimated and matched to the profit and loss account over the 30-year period.
(d) The plantation forest should be valued every 5 years and the increase in value should be shown in the statement of recognized gains and losses.
17. A 4-stroke diesel engine, when running at 2000 rpm has an injection duration of 1.5 ms. What is the.
A 4-stroke diesel engine, when running at 2000 rpm has an injection duration of 1.5 ms. What is the corresponding duration of the crank angle in degrees?
(a) 18°
(b) 9°
(c) 36°
(d) 15°
