Quiz Success: Expert Tips for Mastering Accounting
Kalox, Inc., manufactures an antacid product that passes through two departments. Data for May for the first department follow: |
Gallons | Materials | Labor | Overhead | ||||
Work in process, May 1 | 76,000 | $ | 68,400 | $ | 30,200 | $ | 41,900 |
Gallons started in process | 719,000 | ||||||
Gallons transferred out | 740,000 | ||||||
Work in process, May 31 | 55,000 | ||||||
Cost added during May | $ | 904,725 | $ | 372,370 | $ | 517,225 | |
The beginning work in process inventory was 90% complete with respect to materials and 75% complete with respect to labor and overhead. The ending work in process inventory was 70% complete with respect to materials and 10% complete with respect to labor and overhead. |
Assume that the company uses the weighted-average method of accounting for units and costs. |
1. | Compute the equivalent units for May%u2019s activity for the first department. |
Materials | Labor | Overhead | |
Equivalent units of production (Gallons) | |||
2. | Determine the costs per equivalent unit for May. (Round your answers to 2 decimal places.) |
Materials | Labor | Overhead | |
Cost per equivalent unit | $ | $ | $ |
2. Huang Trucking Company was organized on January 1. At the end of the first quarter (three months)...
Huang Trucking Company was organized on January 1. At the end of the first quarter (three months) of operations, the owner prepared a summary of its activities as shown in the first row of the following tabulation:
1. For each of the six transactions given in this tabulation, enter what you consider the correct amounts. The first transaction is illustrated. (Amounts to be deducted and losses/outflows should be indicated with a minus sign.)
3. 1.The first step in the processing of a transaction is to analyze the transaction and source...
1.The first step in the processing of a transaction is to analyze the transaction and source documents.
2.Preparation of a trial balance is the first step in processing a financial transaction.
3.Source documents provide evidence of business transactions and are the basis for accounting entries.
4.Items such as sales tickets, bank statements, checks, and purchase orders are examples of a business's source documents.
5.An account is a record of increases and decreases in a specific asset, liability, equity, revenue, or expense item.
6.A customer's promise to pay on credit is classified as an account payable by the seller.
7.Withdrawals by the owner are a business expense.
8.The purchase of land and buildings will generally be recorded in the same ledger account.
9.Unearned revenues are classified as liabilities.
10.Cash withdrawn by the owner of a proprietorship for personal expenses, should be treated as an expense of the business.
126.On April 12, Hong Company agrees to accept a 60-day, 10%, $4,500 note from Indigo Company to extend the due date on an overdue account. What is the journal entry needed to record the payment of the note by Indigo Company on the maturity date?
A. Debit Notes Payable $4,500; debit Interest Expense $75; credit Cash $4,575.
B. Debit Notes Payable $4,500; credit Interest Expense $75, credit Cash $4,425.
C. Debit Cash $4,575; credit Interest Revenue $75; credit Notes Payable $4,500.
D. Debit Notes Payable $4,500; debit Interest Expense $112; credit Cash $4,612.
E. Debit Cash $4,575; credit Interest Revenue $75; credit Notes Receivable $4,500.
Interest Expense = Principal Interest Rate Time
Interest Expense = $4,500 0.10 60/360 = $75 (Debit to Interest Expense)
Cash Proceeds = Notes Payable + Interest Expense
Cash Proceeds = $4,500 + $75 = $4,575 (Credit to Cash)
127.On May 22, Jarrett Company borrows $7,500 from Fairmont Financing, signing a 90-day, 8%, $7,500 note. What is the journal entry needed to record the transaction by Jarrett Company?
A. Debit Cash $7,500; credit Accounts Payable $7,500.
B. Debit Accounts Payable $7,500; credit Notes Payable $7,500.
C. Debit Cash $7,650; credit Notes Payable $7,650.
D. Debit Cash $7,500; credit Notes Payable $7,500.
E. Debit Notes Receivable $7,500; credit Cash $7,500.
128.. On May 22, Jarrett Company borrows $7,500 from Fairmont Financing, signing a 90-day, 8%, $7,500 note. What is the journal entry needed to record the payment of the note by Jarrett Company on the maturity date?
A. Debit Notes Payable $7,500; credit Interest Expense $150; credit Cash $7,350.
B. Debit Notes Payable $7,500; credit Cash $7,500.
C. Debit Notes Payable $7,650; credit Cash $7,650.
D. Debit Notes Payable $7,500; debit Interest Expense $150; credit Cash $7,650.
E. Debit Cash $7,650; credit Interest Revenue $150; credit Notes Receivable $7,500.
Interest Expense = Principal Interest Rate Time
Interest Expense = $7,500 0.08 90/360 = $150 (Debit to Interest Expense)
Cash Proceeds = Notes Payable + Interest Expense
Cash Proceeds = $7,500 + $150 = $7,650 (Credit to Cash)
129.An employee earns $5,500 per month working for an employer. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 4.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. The employee has $182 in federal income taxes withheld. The employee has voluntary deductions for health insurance of $150 and contributes $75 to a retirement plan each month. What is the amount of net pay for the employee for the month of January?
A. $4,827.00
B. $4,672.25
C. $4,628.25
D. $4,386.25
E. $4,430.25
Net Pay = Gross Pay - Federal Income Tax - FICA-SS Tax - FICA-Medicare Tax - Health Insurance - Retirement Plan
Net Pay = $5,500 - $182 - $341 - $79.75* - $150 - $75 = $4,672.25
FICA-SS Tax $5,500 0.062 = $341.00
FICA-Medicare Tax $5,500 * 0.0145 = $79.75
130.An employee earned $4,600 in February working for an employer. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The employee has $644 in federal income taxes withheld and has voluntary deductions for health insurance of $50 and contributes 10% of gross pay to a retirement plan each month. The employer pays the $200 remainder of the health insurance premium and an equal amount of contribution to the retirement fund. What is the amount of net pay for the employee for the month of February?
A. $3,094.10
B. $3,496.00
C. $3,604.10
D. $3,446.00
E. $2,634.10
Net Pay = Gross Pay - Federal Income Tax - FICA-SS Tax - FICA-Medicare Tax - Health Insurance - Retirement Plan
Net Pay = $4,600 - $644 - $285.20 - $66.70 - $50 - ($4,600 .10) = $3,094.10
FICA-SS Tax $4,600 0.062 = $285.20
FICA-Medicare Tax $4,600 * 0.0145 = $66.70
131.An employee earns $5,500 per month working for an employer. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 4.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. The employee has $182 in federal income taxes withheld. The employee has voluntary deductions for health insurance of $150 and contributes $75 to a retirement plan each month. What is the amount the employer should record as payroll taxes expense for the employee for the month of January?
A. $420.75
B. $464.75
C. $602.75
D. $841.50
E. $695.75
Payroll Tax Expense = FICA-SS Tax1 + FICA-Medicare Tax2 + FUTA Tax3 + SUTA Tax4
Payroll Tax Expense = $341 + $79.75 + $33 + $242 = $695.75
1FICA-SS Tax $5,500 * 0.062 = $341.00
2FICA-Medicare Tax $5,500 * 0.0145 = $79.75
3FUTA Tax $5,500 * 0.006 = $33.00
4SUTA Tax $5,500 * 0.044 = $242.00
132.An employee earned $4,600 in February working for an employer. Cumulative earnings of the previous pay periods are $4,800. The FICA tax rate for Social Security is 6.2% and the FICA tax rate for Medicare is 1.45%. The current FUTA tax rate is 0.6%, and the SUTA tax rate is 4.4%. Both unemployment taxes are applied to the first $7,000 of an employee's pay. What is the amount the employer should record as payroll taxes expense for the month of February?
A. $581.90
B. $110.00
C. $351.90
D. $461.90
E. $230.00
Employer Taxes = FICA Social Security + FICA Medicare + FUTA + SUTA
Employer Taxes = $285.20 + $66.70 + $13.20 + $96.80* = $461.90
FICA-SS Tax $4,600 0.062 = $285.20
FICA-Medicare Tax $4,600 * 0.0145 = $66.70
*Wages taxable for Unemployment = $7,000 - $4,800 = $2,200
FUTA = $2,200 0.006 = $13.20; SUTA = $2,200 .044 = $96.80
133.All of the following statements regarding FICA taxes are true except:
A. FICA taxes are deducted from the employee.
B. Employers must pay withheld FICA taxes to the IRS.
C. The amount of FICA deducted from the employee is credited to a liability account.
D. A self-employed person is exempt from FICA taxes.
E. An employer must pay FICA taxes equal to the amount withheld from the employee.
134.Athena Company provides employee health insurance that costs $5,000 per month. In addition, the company contributes an amount equal to 5% of the employees' $120,000 gross salary to a retirement program. The entry to record the accrued benefits for the month would include a:
A. Debit to Medical Insurance Payable $5,000.
B. Debit to Employee Retirement Program Payable $6,000.
C. Debit to Employee Benefits Expense $11,000.
D. Credit to Employee Benefits Expense $11,000.
E. Debit to Payroll Taxes Expense $11,000.
Accrued Expenses = ($120,000 * 0.05) + $5,000 = $11,000
135.Athena Company's salaried employees earn two weeks of vacation per year. It pays $858,000 in total employee salaries for 52 weeks but its employees work only 50. Record Athena Company's weekly journal entry to record the vacation expense:
A. Debit Vacation Benefits Expense $16,500; credit Vacation Benefits Payable $16,500.
B. Debit Vacation Benefits Expense $17,160; credit Vacation Benefits Payable $17,160.
C. Debit Vacation Benefits Expense $17,875; credit Vacation Benefits Payable $17,875.
D. Debit Vacation Benefits Payable $17,160; credit Vacation Benefits Expense $17,160.
E. Debit Vacation Benefits Payable $16,500; credit Vacation Benefits Expense $16,500.
Weekly Vacation Expense = $858,000/50 = $17,160
5. 1. You are involved in a biodiversity survey and encounter a meadow of grass. How would you best...
1. You are involved in a biodiversity survey and encounter a meadow of grass. How would you best describe the grass?
a) Dicot.
b) Monocot.
c) Gymnosperm.
d) Nonvascular.
e) Conifer.
2. You are involved in a biodiversity survey and encounter a field of ferns. How would you best describe a fern?
a) Dicot.
b) Monocot.
c) Gymnosperm.
d) Seedless.
e) Conifer.
3. You are involved in a biodiversity survey and encounter a forest of pine trees. How would you best describe a pine tree?
a) Dicot.
b) Monocot.
c) Angiosperm
d) Nonvascular.
e) Conifer.
4. You are involved in a biodiversity survey and encounter a patch of wild rose shrubs. How would you best describe a rose?
a) Dicot.
b) Monocot.
c) Gymnosperm.
d) Nonvascular.
e) Conifer.
a) Monocot.
b) Angiosperm.
c) Gymnosperm.
d) Prothallus.
e) Sporophyte.
6. You are involved in a biodiversity survey and encounter a flowering plant with parallel veins, three petals, and three leaves. How would you best describe it?
a) Dicot.
b) Monocot.
c) Liverwort.
d) Nonvascular.
e) Conifer.
7. You are involved in a biodiversity survey and encounter a large bed of leafy-looking moss plants. How would you best describe them?
a) Dicots.
b) Monocots.
c) Sporophytes.
d) Gametophytes
e) Prothalli.
8. Alex is studying reproduction in mosses. Where might he detect meiosis occurring?
a) Zygote.
b) Gametophyte.
c) Archegonium.
d) Antheridum.
e) Sporangium.
9. Alex is studying reproduction in mosses. From what structure might he obtain a sample of moss sperm?
a) Zygote.
b) Sporophyte.
c) Archegonium.
d) Antheridum.
e) Sporangium.
10. Janice is rehabilitating an ecosystem and wants to encourage moss reproduction (not quite likely, as ecosystem recovery is a HUGE project). What would be the consequence if she plucked moss sporophytes and planted them in the ground?
a) They would produce spores that would form new sporophytes.
b) They would produce gametes that would develop into gametophytes.
c) They would fail to thrive as they depend on gametophytes for nourishment.
d) They would produce spores that would develop into gametophytes.
e) They would fail to reproduce because mosses require water for sperm transit.
21) The IEEE 802.3 protocol standard is also known as ________.
A) Bluetooth
B) Ethernet
C) intranet
D) Internet
22) Which of the following statements is true about IEEE 802.3?
A) It is the protocol for wireless LAN connections.
B) It is the protocol for Bluetooth.
C) It is the protocol for wired LAN connections.
D) It is the universal standard protocol for all WAN connections.
23) Communications speeds are expressed in ________.
A) bits
B) bytes
C) hertz
D) packets
24) Which of the following statements is true about the IEEE 802.11ac protocol?
A) It is also known as Ethernet.
B) It is used for wired LAN connections.
C) It cannot be processed by access points.
D) It allows speeds of up to 1.3 Gbps.
25) ________ is a wireless protocol designed for transmitting data over short distances, replacing cables.
A) IPv6
B) PaaS
C) Bluetooth
D) IPv4
26) Which of the following is a function of an ISP?
A) It transmits data over short distances, replacing cables.
B) It serves as a gateway to the Internet.
C) It describes how messages must be processed for wired transmission.
D) It connects computers within a LAN.
27) Which of the following is true of digital subscriber line signals?
A) Digital subscriber line signals do not interfere with telephone signals.
B) Digital subscriber line signals use the same protocols as cable modems do for data transmission.
C) Digital subscriber line signals replace phone signals and are sent to the ISP.
D) Digital subscriber line signal data transmission and telephone conversations cannot occur simultaneously.
28) ________ signals do not interfere with TV signals, even though they use the same lines.
A) DSL
B) Dial-up
C) Cable
D) ADSL
29) Which of the following is true about cable lines?
A) They provide high-speed data transmission using telephone cables.
B) They offer consistent performance, irrespective of the number of users sending and receiving data.
C) They rely on high-capacity optical fiber cables and use their own protocols for data transmission.
D) They provide faster download speeds than DSL modems.
30) A computer that supports 10/100/1000 Ethernet allows for 10, 100, or 1000 ________ per second.
A) megabytes
B) megabits
C) kilobytes
D) kilobits