Fall Into Greatness: Expert Help for Accounting Assignment

Published: 9 months ago

Fall Into Greatness: Expert Help for Accounting Assignment

31. Problem 7-54 Plantwide versus Departmental Rates, Product-Costing Accuracy: Activity-Based...

Problem 7-54 Plantwide versus Departmental Rates, Product-Costing Accuracy: Activity-Based Costing

Ramsey Company produces speakers (Model A and Model B). Both products pass through two producing departments. Model A’s production is much more labor-intensive than that of   Model

B. Model B is also the more popular of the two speakers. The following data have been gathered for the two products:

Product Data Model A                          Model B

Required:

1.       Compute the overhead cost per unit for each product by using a plantwide rate based on direct labor hours. (Note: Round to two decimal places.)

2.       Compute the overhead cost per unit for each product by using ABC. (Note: Round  rates and unit overhead cost to two decimal places.)

3.       Suppose that Ramsey decides to use departmental overhead rates. There are two depart- ments: Department 1 (machine intensive) with a rate of $3.50 per machine hour and Depart- ment 2 (labor intensive) with a rate of $0.90 per direct labor hour. The consumption of these two drivers is as follows:

Department 1 Machine Hours

Department 2 Direct Labor Hours

Model A                                     10,000                          130,000

Model B                                   170,000                          270,000

Compute the overhead cost per unit for each product by using departmental rates. (Note: Round to two decimal places.)

4.       CONCEPTUAL CONNECTION Using the activity-based product costs as the standard, comment on the ability of departmental rates to improve the accuracy of product costing. Did the departmental rates do better than the plantwide rate?

32. The adjusted trial balance of Cavamanlis Co. as of December

The adjusted trial balance of Cavamanlis Co. as of December 31, 2012, contains the following.



Instructions

(a) Prepare an income statement.

(b) Prepare a statement of retained earnings.

(c) Prepare a classified balancesheet.

33. Transfer pricing, general guideline, goal congruence. (CMA, adap

Transfer pricing, general guideline, goal congruence. (CMA, adapted). Quest Motors, Inc., operates as a decentralized multidivision company. The Tivo Division of Quest Motors purchases most of its airbags from the Airbag Division. The Airbag Division’s incremental cost for manufacturing the airbags is $90 per unit. The Airbag Division is currently working at 80% of capacity. The current market price of the airbags is $125 per unit

1. Using the general guideline presented in the chapter, what is the minimum price at which the Airbag Division would sell airbags to the Tivo Division?

2. Suppose that Quest Motors requires that whenever divisions with unused capacity sell products internally, they must do so at the incremental cost. Evaluate this transfer-pricing policy using the criteria of goal congruence, evaluating division performance, motivating management effort, and preserving division autonomy.

3. If the two divisions were to negotiate a transfer price, what is the range of possible transfer prices? Evaluate this negotiated transfer-pricing policy using the criteria of goal congruence, evaluating division performance, motivating management effort, and preserving division autonomy.

4.Do you prefer the transfer-pricing policy in requirement 2 or requirement 3? Explain your answer briefly.

34. a. Explain the mechanism of calculating the present value of cash flows.What is annuity due? How...

35. 25 M/C QUESTIONS ON ACCOUNTING :

QUESTIONS :

1.On September 30, the Cash account of Value Company had a normal balance of $5,700. During September, the account was debited for a total of $12,900 and credited for a total of $12,200. What was the balance in the Cash account at the beginning of September?

A $6,400 credit balance.

A $6,400 debit balance.

A $0 balance.

A $5,000 debit balance.

A $5,000 credit balance.

2.

A company had no office supplies available at the beginning of the year. During the year, the company purchased $370 worth of office supplies. On December 31, $135 worth of office supplies remained. How much should the company report as office supplies expense for the year?

$135.

$185.

$235.

$370.

$505.

3.

On January 1 of the current year, Bob's Lawn Care Service reported owner's capital totaling $124,400. During the current year, total revenues were $97,900 while total expenses were $83,600. Also, during the current year Bob withdrew $21,900 from the company. No other changes in equity occurred during the year. If, on December 31 of the current year, total assets are $196,000, the change in owner's capital during the year was:

A decrease of $7,600.

An decrease of $36,200.

An increase of $7,600.

Impossible to determine from the information provided.

A increase of $36,200.

4.

On March 31, Phoenix, Inc. paid Melanie Publishing Company $21,600 for a 3-year subscription for five different magazines. The subscriptions started immediately. What amount should appear in the Prepaid Subscription account for Phoenix Company after adjustments on December 31 each year assuming Phoenix using a calendar reporting period?

$21,600; $16,200; $9,000; $1,800.

$5,400; $7,200; $7,200; $1,800.

$7,200; $7,200; $7,200.

$16,200; $9,000; $1,800; $0.

The answer cannot be determined based on the information given.

5.

A trial balance taken at year-end showed total credits exceed total debits by $5,760. This discrepancy could have been caused by:

The balance of $57,600 in Accounts Payable being entered in the trial balance as $640.

The balance of $6,400 in the Office Equipment account being entered on the trial balance as a debit of $640.

An error in the general journal where a $5,760 increase in Accounts Payable was recorded as a decrease in Accounts Payable.

A net income of $5,760.

An error in the general journal where a $5,760 increase in Accounts Receivable was recorded as an increase in Cash.

6.

A $190 credit to Office Equipment was credited to Fees Earned by mistake. By what amounts are the accounts under- or overstated as a result of this error?

Office Equipment, overstated $190; Fees Earned, overstated $190.

Office Equipment, overstated $380; Fees Earned, understated $190.

Office Equipment, understated $380; Fees Earned, overstated $190.

Office Equipment, understated $190; Fees Earned, overstated $190.

Office Equipment, overstated $190; Fees Earned, understated $190.

7.

On April 30, Holden Company had an Accounts Receivable balance of $19,600. During the month of May, total credits to Accounts Receivable were $53,600 from customer payments. The May 31 Accounts Receivable balance was $14,600. What was the amount of credit sales during May?

$5,000.

$48,600.

$34,200.

$58,600.

$53,600.

8.

On April 1, a company paid the $2,052 premium on a three-year insurance policy with benefits beginning on that date. What will be the insurance expense on the annual income statement for the year ended December 31? (Round your answer to 1 decimal places.)

$2,052.00.

$684.00.

$1,539.00.

$513.00.

$57.00.

9.

At the beginning of January of the current year, Thomas Law Center's ledger reflected a normal balance of $52,000 for accounts receivable. During January, the company collected $14,800 from customers on account and provided additional services to customers on account totaling $12,500. Additionally, during January one customer paid Thomas $5,000 for services to be provided in the future. At the end of January, the balance in the accounts receivable account should be:

$49,300.

$54,300.

$2,300.

$49,700.

$54,700.

10.

Stride Along has total assets of $425 million. Its total liabilities are $110 million. Its equity is $315 million. Calculate the debt ratio.

38.6%.

13.5%.

34.9%.

25.9%.

14.9%.

11.

The following information is available for the Travis Travel Agency. After closing entries are posted, what will be the balance in the Jay Travis, Capital account?

Total revenues $128,000

Total expenses 61,500

Jay Travis, Capital 75,000

Jay Travis, Withdrawals 16,500

$66,500.

$75,000.

$125,000.

$141,500.

$281,000.

12.

A company normally sells its product for $30 per unit. However, the selling price has fallen to $25 per unit. This company's current inventory consists of 100 units purchased at $26 per unit. Replacement cost has now fallen to $23 per unit. Calculate the value of this company's inventory at the lower of cost or market.

$2,500.

$2,400.

$2,600.

$2,250.

$2,300.

13.

Use the information in the adjusted trial balance presented below to calculate current assets for Jones Company:

Account TitleDr.Cr.

Cash 24,000

Accounts receivable 17,000

Prepaid insurance 7,600

Equipment 110,000

Accumulated Depreciation - Equipment 55,000

Land 105,000

Accounts payable 18,000

Interest payable 2,900

Unearned revenue 6,000

Long-term notes payable 40,000

J. Jones, Capital 141,700

Totals 263,600 263,600

$21,700.

$48,600.

$26,900.

$103,600.

$44,200.

14.

A company has net sales and cost of goods sold of $754,000 and $544,600, respectively. Its net income is $17,730. The company's gross margin and operating expenses are ________ and ___________, respectively.

$191,670; $209,400

$227,130; $526,870

$736,270; $191,670

$209,400; $191,670

$526,870; $227,130

15.

A company purchased $4,400 worth of merchandise. Transportation costs were an additional $400. The company later returned $325 worth of merchandise and paid the invoice within the 1% cash discount period. The total amount paid for this merchandise is:

$4,431.00.

$4434.25.

$4,075.00.

$4,475.00.

$4,356.00.

16.

Based on the following information from Raptor Company's balance sheet, calculate the current ratio.

Current assets $ 87,000

Long-term investments 50,000

Plant assets 250,000

Current liabilities 39,000

Long-term liabilities 90,000

Raptor, Capital 258,000

.45.

3.51.

3.33.

1.06.

2.23.

17.

Herald Company had sales of $141,000, sales discounts of $3,200, and sales returns of $4,400. Herald Company's net sales equals:

$141,000.

$133,400.

$148,600.

$137,800.

$7,600.

18.

Thelma Company reported cost of goods sold for Year 1 and Year 2 as follows:

Year 1Year 2

Beginning inventory$ 123,000 $ 130,600

Cost of goods purchased 250,600 278,000

Cost of goods available for sale 373,600 408,600

Ending inventory 130,600 135,600

Cost of goods sold$ 243,000 $ 273,000

Thelma Company made two errors: 1) ending inventory at the end of Year 1 was understated by $15,600 and 2) ending inventory at the end of Year 2 was overstated by $6,600. Given this information, the correct cost of goods sold figure for Year 2 would be:

$288,600

$279,600

$252,000

$266,400

$295,200

19.

Bentley records adjusting entries on December 31 year end. At December 31, employees had earned $12,500 of unpaid and unrecorded salaries. The next payday is January 3, during which $31,000 will be paid. Prepare the January 1 journal entry to reverse the effect of the December 31 salary expense accrual.

Debit Salaries expense $12,500; credit Salaries payable $12,500.

Debit Salaries expense $18,500; debit Salaries payable $12,500; credit Cash $31,000.

Debit Salaries payable $18,500; credit Cash $18,500.

Debit Salaries payable $12,500, credit Salaries expense $12,500.

Debit Salaries expense $18,500; credit Salaries payable $18,500.

20.

The Unadjusted Trial Balance columns of a work sheet total $84,500. The Adjustments columns contain entries for the following:

1.

Office supplies used during the period, $1,450.

2.

Expiration of prepaid rent, $950.

3.

Accrued salaries expense, $750.

4.

Depreciation expense, $1,050.

5.

Accrued service fees receivable, $650.

The Adjusted Trial Balance columns total is:

$79,650.

$84,500.

$86,950.

$87,150.

$89,350.

21.

The following information is available for Holland Company at December 31:

Money market fund balance$ 2,920

Certificate of deposit maturing June 30 of next year$ 16,300

Postdated checks from customers$ 1,800

Cash in bank account$ 23,731

NSF checks from customers returned by bank$ 780

Cash in petty cash fund $ 330

Inventory of postage stamps $ 31

U.S. Treasury bill purchased on December 15 and maturing

on February 28 of following year

$ 11,300

Based on this information, Holland Company should report Cash and Cash Equivalents on December 31 of:

$38,281

$40,861

$43,312

$54,581

$39,301

22.

A company had net sales of $540,000, total sales of $690,000, and an average accounts receivable of $83,000. Its accounts receivable turnover equals (Round your final answer to two decimal places):

0.15

0.78

0.12

6.51

8.31

23.

Martha Company has an established petty cash fund in the amount of $500. The fund was last reimbursed on November 30. At the end of December, the fund contained the following petty cash receipts:

December 4 Freight charge for merchandise purchased$ 56

December 7 Freight charge for delivery to customer$ 80

December 12 Purchase of office supplies$ 45

December 18 Donation to charitable organization$ 64

If, in addition to these receipts, the petty cash fund contains $246.00 of cash, the journal entry to reimburse the fund on December 31 will include:

A debit to Transportation-In of $101.

A debit to Transportation-Out of $101.

A credit to Cash Over and Short of $9.00.

A debit to Cash Over and Short of $9.00.

A credit to Office Supplies of $80.

24.

A company had net sales of $31,400 and ending accounts receivable of $2,800 for the current period. Its days' sales uncollected equals. (Use 365 days a year and round your final answer to two decimal places):

24.55 days.

47.85 days.

32.55 days.

43.75 days.

11.21 days.

25.

Teller purchased merchandise from TechCom on October 17 of the current year and TechCom accepted Teller's $8,400, 90-day, 8% note. What entry should TechCom make on January 15 of the next year when the note is paid? (Use 360 days a year. Do not round intermediate calculations.)

Debit Notes Receivable $8,400; debit Interest Receivable $168; credit Sales $8,568.

Debit Cash $8,568; credit Interest Revenue $28; credit Interest Receivable $140; credit Notes Receivable $8,400.

Debit Cash $4,920; credit Interest Revenue $100; credit Interest Receivable $20; credit Notes Receivable $4,800.

Debit Cash $8,568; credit Notes Receivable $8,568.

Debit Cash $8,568; credit Interest Revenue $168; credit Notes Receivable $8,400.

36. Exercise 12-5 Income allocation in a partnership LOP2 Kramer and Knox began a partnership by inve...

Exercise 12-5 Income allocation in a partnership LOP2 Kramer and Knox began a partnership by investing $60,000 and $80,000, respectively. The partners agreed to share net income and loss by granting annual salary allowances of $50,000 to Kramer and $40,000 to Knox, 10% interest allowances on their investments, and any remaining balance shared equally 1. Determine the partners' shares of Kramer and Knox given a first-year net income of $98,800. (Enter all allowances as positive values. Enter losses as negative values.) Allocation of Partnership Income Total Kramer Knox Net Income (loss) 98,800 Salary allowances Balance of income (loss) Interest allowances Balance of income (loss) Balance allocated equally Balance of income (loss) Shares of the partners