Question 1
Please highlight your answers in yellow. Thank you ? 1. Globe Company produces two products, A1 and B2. A1 is a high-volume item totaling 20,000 units annually. B2 is a low-volume item totaling only 6,000 units per year. A1 requires one hour of direct labor for completion, while each unit of B2 requires 2 hours. Therefore, total annual direct labor hours are 32,000 (20,000 + 12,000). Expected annual manufacturing overhead costs are $640,000. Globe uses a traditional costing system and assigns overhead based on direct labor hours. Each unit of B2 would be assigned overhead of A) $20.00. B) $24.61. C) $40.00. D) need more information to compute. 2. R-Ball Corporation manufactures deluxe and standard racquetball racquets. R-Ball's total overhead costs consist of assembly costs and inspection costs. The following information is available: Cost Deluxe Standard Total Cost Assembly 500 mach. hours 500 mach. hours $30,000 Inspections 350 150 $50,000 2,100 labor hours 1,900 labor hours R-Ball is considering switching from one overhead rate based on labor hours to activity-based costing. Using activity-based costing, how much assembly cost is assigned to deluxe racquets? A) $10,500. B) $15,000. C) $15,750. D) $21,000. 3. Vinnie Morelli Corporation has the following overhead costs and cost drivers. Direct labor hours are estimated at 100,000 for the year. Activity Cost Pool Cost Driver Est. Overhead Cost Driver Activity Ordering and Receiving Orders $ 120,000 500 orders Machine Setup Setups 297,000 450 setups Machining Machine hours 1,500,000 125,000 MH Assembly Parts 1,200,000 1,000,000 parts Inspection Inspections 300,000 500 inspections If overhead is applied using activity-based costing, the overhead application rate for ordering and receiving is A) $1.20 per direct labor hour. B) $240 per order. C) $0.12 per part. D) $6,834 per order. 4. Companies that switch to ABC often find they have A) been overpricing some products. B) possibly losing market share to competitors. C) been sacrificing profitability by underpricing some products. D) all of the above. 5. A company incurs $1,350,000 of overhead each year in three departments: Ordering and Receiving, Mixing, and Testing. The company prepares 2,000 purchase orders, works 50,000 mixing hours, and performs 1,500 tests per year in producing 200,000 drums of Goo and 600,000 drums of Slime. The following data are available: Department Expected use of Driver Cost Ordering and Receiving 2,000 $400,000 Mixing 50,000 500,000 Testing 1,500 450,000 Production information for Goo is as follows: Department Expected use of Driver Ordering and Receiving 400 Mixing 20,000 Testing 500 Compute the amount of overhead assigned to Goo. A) $337,500 B) $430,000 C) $527,382 D) $675,000 6. An important element of just-in-time processing is A) dependable suppliers who are willing to deliver on short notice. B) a specialized workforce. C) less emphasis on a quality control system. D) all of the above. 7. A cost which remains constant per unit at various levels of activity is a A) variable cost. B) fixed cost. C) mixed cost. D) manufacturing cost. 8. A fixed cost is a cost which A) varies in total with changes in the level of activity. B) remains constant per unit with changes in the level of activity. C) varies inversely in total with changes in the level of activity. D) remains constant in total with changes in the level of activity. 9. If the activity level increases 10%, total variable costs will A) remain the same. B) increase by more than 10%. C) decrease by less than 10%. D) increase 10%. 10. Changes in activity have a(n) _________ effect on fixed costs per unit. A) positive B) negative C) inverse D) neutral 11. Why is identification of a relevant range important? A) It is required under GAAP. B) Cost behavior outside of the relevant range is not linear, which distorts CVP analysis. C) It directly impacts the number of units of product a customer buys. D) It is a cost that is incurred by a company that must be accounted for. 12. Fontain, Inc. collected the following production data for the past month: Units Produced Total Cost 1,600 $22,000 1,300 19,000 1,500 22,500 1,100 16,500 If the high-low method is used, what is the monthly total cost equation? A) Total cost = $4,400 + $11/unit B) Total cost = $5,500 + $10/unit C) Total cost = $0 + $15/unit D) Total cost = $3,300 + $12/unit 13. At the high level of activity in November, 7,000 machine hours were run and power costs were $12,000. In April, a month of low activity, 2,000 machine hours were run and power costs amounted to $6,000. Using the high-low method, the estimated fixed cost element of power costs is A) $12,000. B) $6,000. C) $3,600. D) $8,400. 14. Wynne Company's high and low level of activity last year was 60,000 units of product produced in May and 20,000 units produced in November. Machine maintenance costs were $78,000 in May and $30,000 in November. Using the high-low method, determine an estimate of total maintenance cost for a month in which production is expected to be 45,000 units. A) $67,500 B) $72,000 C) $58,500 D) $60,000 15. Clark Company produces flash drives for computers, which it sells for $20 each. Each flash drive costs $12 of variable costs to make. During April, 1,000 drives were sold. Fixed costs for March were $2 per unit for a total of $1,000 for the month. How much is the contribution margin ratio? A) 30%. B) 40%. C) 60%. D) 70%. 16. If a company had a contribution margin of $500,000 and a contribution margin ratio of 40%, total variable costs must have been A) $750,000. B) $300,000. C) $1,250,000. D) $200,000. 17. A company has contribution margin per unit of $45 and a contribution margin ratio of 40%. What is the unit selling price? A) $75.00. B) $112.50. C) $18.00. D) Cannot be determined. 18. Disney's variable costs are 30% of sales. The company is contemplating an advertising campaign that will cost $22,000. If sales are expected to increase $40,000, by how much will the company's net income increase? A) $18,000. B) $28,000. C) $12,000. D) $6,000. 19. At the break-even point of 2,000 units, variable costs are $55,000, and fixed costs are $32,000. How much is the selling price per unit? A) $43.50. B) $11.50. C) $16.00. D) Not enough information 20. The break-even point is where A) total sales equal total variable costs. B) contribution margin equals total fixed costs. C) total variable costs equal total fixed costs. D) total sales equal total fixed costs. 21. Fallow-Hawke is a nonprofit organization that captures stray deer from residential communities. Fixed costs are $10,000. The variable cost of capturing each deer is $10.00 each. Fallow-Hawke is funded by a local philanthropy in the amount of $32,000 for 2008. How many deer can Fallow-Hawke capture during 2008? A) 2,200. B) 3,200. C) 4,200. D) 2,000. 22. Variable costs for Foley, Inc. are 25% of sales. Its selling price is $80 per unit. If Foley sells one unit more than break-even units, how much will profit increase? A) $60.00. B) $20.00. C) $26.66. D) $320.00. 23. A company requires $1,020,000 in sales to meet its net income target. Its contribution margin is 30%, and fixed costs are $180,000. What is the target net income? A) $306,000. B) $234,000. C) $420,000. D) $126,000. 24. Dodge Company produces flash drives for computers, which it sells for $20 each. Each flash drive costs $6 of variable costs to make. During March, 1,000 drives were sold. Fixed costs for March were $4.20 per unit for a total of $4,200 for the month. If variable costs decrease by 10%, what happens to the break-even level of units per month for Dodge Company? A) It is 10% higher than the original break-even point. B) It decreases about 12 units. C) It decreases about 30 units. D) It depends on the number of units the company expects to produce and sell. 25. For Bobby Company, sales is $1,000,000 (5,000 units), fixed expenses are $300,000, and the contribution margin per unit is $80. What is the margin of safety in dollars? A) $50,000 B) $250,000 C) $450,000 D) $700,000 26. Konerko Company sells two types of computer chips. The sales mix is 30% (Q-Chip) and 70% (Q-Chip Plus). Q-Chip has variable costs per unit of $30 and a selling price of $50. Q-Chip Plus has variable costs per unit of $35 and a selling price of $65. The weighted-average unit contribution margin for Konerko is: A) $23. B) $25. C) $27. D) $50. 27. Konerko Company sells two types of computer chips. The sales mix is 30% (Q-Chip) and 70% (Q-Chip Plus). Q-Chip has variable costs per unit of $30 and a selling price of $50. Q-Chip Plus has variable costs per unit of $35 and a selling price of $65. Konerko's fixed costs are $540,000. How many units of Q-Chip would be sold at the break-even point? A) 6,000 B) 7,043 C) 10,000 D) 14,000 28. Fields Corporation has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Fields incurs $2,220,000 in fixed costs. The contribution margin ratio for Sporting Goods is 30%, while for Sports Gear it is 50%. What will sales be for the Sporting Goods Division at the break-even point? A) $1,800,000 B) $2,100,000 C) $3,355,814 D) $3,900,000 29. Dye Company can sell all the units it can produce of either Plain or Fancy but not both. Plain has a unit contribution margin of $96 and takes two machine hours to make and Fancy has a unit contribution margin of $120 and takes three machine hours to make. There are 2,400 machine hours available to manufacture a product. What should Dye do? A) Make Fancy which creates $24 more profit per unit than Plain does. B) Make Plain which creates $8 more profit per machine hour than Fancy does. C) Make Plain because more units can be made and sold than Fancy. D) The same total profits exist regardless of which product is made. 30. A cost structure which relies more heavily on fixed costs makes the company: A) more sensitive to changes in sales revenue. B) less sensitive to changes in sales revenue. C) either more or less sensitive to changes in sales revenue, depending on other factors. D) have a lower break-even point. Thank you, you don't need to give me the solutions, you can just give me the correct answers! Thanks!!
Question 3
The following trial balance is for Jackson Sales Company, a home improvement retailer, at January 1, 2012: Debit Credit Cash $49,950 Accounts Receivable 14,000 Allowance for Doubtful Accounts $2,600 Merchandise Inventory 20,200 Land 50,000 Buildings 81,000 Accumulated Depreciation ? Buildings 37,500 Equipment 45,000 Accumulated Depreciation ? Equipment 18,000 Accounts Payable 3,750 Notes Payable 38,500 Common Stock, $10 par 40,000 Retained Earnings 158,300 $260,150 $260,150 PART 1?TRANSACTIONS ? 40 points INSTRUCTIONS: Journalize the appropriate entries for the following transactions for the period January 1, 2012 to December 31, 2012. The company uses a perpetual inventory system and FIFO cost method. Beginning inventory on January 1 consisted of 1,000 units at $20.20 per unit. February 1 Paid $3,750 accounts payable balance due to a supplier. March 15 Received $2,500 partial payment on a $5,000 accounts receivable balance. Wrote off the rest of the account as uncollectible. April 1 April 15 Purchased on account 2,500 units merchandise for resale at $21.50 per unit, with 2/10, n/30 terms. Paid the invoice for April 1 purchase October 10 Sold 700 units of merchandise for a cash price of $40/unit. November 1 Borrowed $20,000 at 6% interest for 5 years with annual payments of principal and interest on October 31. Used the loan proceeds plus cash to purchase a $25,000 delivery truck. December 1 Bought back 500 shares of outstanding stock, paying $15/share. December 5 Sold 2,400 units of merchandise on account for $41/unit. Payment terms on the invoice were 1/10, n/30. December 7 Of the merchandise sold on December 5, 50 units were returned. December 15 Paid $3,000 for rent of a warehouse facility. The payment covers rent for December and January. December 15 Declared a $1/share cash dividend, payable January 14 to shareholders of record on January 3. December 18 Purchased office supplies of $1,600 on account. December 31 Recorded depreciation for the year Buildings have a 30-year life, a $6,000 residual value and use straight-line depreciation Equipment has a 5-year life, no residual value and use double-declining balance depreciation NOTE: Equipment was all purchased January 1, 2011 Vehicles have a 5-year life, no residual value and use straight-line depreciation December 31 The allowance for doubtful accounts balance is estimated as follows: 2% of current balances are estimated as uncollectible 20% of past-due balances are estimated as uncollectible. December 31 A count of office supplies shows $550 still on hand on December 31. January 2, 2013 Paid salaries of $24,500 for the pay period December 31 through January 4. Salaries are earned evenly during the pay period. PART 2 ? TRIAL BALANCE ? 10 points INSTRUCTIONS: Prepare a trial balance as of December 31, 2012. PART 3?FINANCIAL STATEMENTS ? 75 points INSTRUCTIONS: Prepare a December 31, 2012 Classified Balance Sheet, Classified Income Statement and Statement of Cash Flows,I have some done if it would help to see where I am going wrong Part 1 Jan 1 Accounts Payable $3750 Cash $3750 March 15 Cash $2500 Allowance for doubtful accounts $2500 Accounts receivable $5000 April 1 Merchandise Inventory $53,750 Accounts payable $53,750 April 15 Accounts payable $53,750 Cash $52,675 Merchandise Inventory $ 1,075 Oct 10 Cash $28,700 Sales $28,700 Oct 10 Cost of goods sold $15,050 Merchandise inventory $15,050 Nov 1 cash $20,000 Loan $20,000 Nov 1 Delivery Truck $25,000 Notes payable $20,000 Cash $ 5,000 Dec 1 Treasury Stock $7,500 Cash $7,500 Dec 5 accounts receivable $98,400 Sales $98,400 Dec 5 cost of goods sold $50,300 Merchandise inventory $50,300 Dec 7 sales returns & allowances $2,050 Accounts receivable $2,050 Dec7 Merchandise inventory $2,050 Cost of goods sold $2,050 Dec 15 Rent Expense $1,500 Prepaid Rent $1,500 Cash $3,000 Dec 15 Dividend expense $4,000 Dividend payable $4,000 Dec 18 Office supplies $1,600 Accounts payable $1,600 Dec 31 depreciation expense-buildings $1,467 Accumulated depreciation $1,467 Dec 31 depreciation expense- equipment $5,470 Accumulated depreciation $5,470 Dec 31 depreciation expense- vehicle $667 Accumulated depreciation $667 Dec 31 Bad debt expense $1,050 Allowance for doubtful $1,050 Dec 31 interest on loan expense $200 Interest payable $200 Jan 2 Supplies expense $4,900 Salaries payable $4,900
Question 4
I need help with 5 questions. I have to email this assignment to my professor by tonight. I completed them but I ave no way of checking them to make sure if they are right or not. I will upload the questions, If you could email them back on an excel doc that would be great. ew104@eagle.pbu.edu,here is the file,1. On January 1, 2010, Potter Corporation issued $800,000, 9%, 5-year bonds for $769,112. The bonds were sold to yield an effective-interest rate of 10%. Interest is paid semiannually on June 30 and December 31. The company uses the effective-interest method of amortization. Instructions (a) Prepare a bond discount amortization schedule which shows the amortization of discount for the first two interest payment dates. (Round to the nearest dollar.) (b) Prepare the journal entries that Potter Corporation would make on January 1, June 30, and December 31, 2010, related to the bond issue. 2. On January 1, 2010, Fabian Enterprises issued 9%, 10-year bonds with a face amount of $900,000 at 96. Interest is payable semiannually on June 30 and December 31. The bonds were issued for an effective interest rate of 10%. Instructions Prepare the entries to record the issuance of the bonds and the first semiannual interest payment assuming that the company uses effective-interest amortization. 3. Weaver Company has the following data at December 31, 2010 for its securities. Securities Cost Fair Value Trading $90,000 $92,000 Available-for-sale 74,000 71,000 Instructions (a) Prepare the adjusting entries to report the securities at fair value. (b) Indicate the statement presentation of the related unrealized gain (loss) accounts for each class of securities. 4. On April 25, Donnoly Company buys 4,200 shares of Carpenter common stock for $92,500, plus brokerage fees of $2,000. On October 31, Donnoly sells 600 shares of Corpenter stock for $15,500, less brokerage fees of $500. Prepare journal entries for the purchase and sale of the Carpenter common stock. 5. Stone Company had the following transactions pertaining to short-term investments in equity securities. Jan. 1 Purchased 1,500 shares of Quayle Company stock for $9,150 cash plus brokerage fees of $300. June 1 Received cash dividends of $.50 per share on Quayle Company stock. Sept. 15 Sold 400 shares of Quayle Company stock for $2,500 less brokerage fees of $100. Dec. 1 Received cash dividends of $.50 per share on Quayle Company stock. Instructions (a) Journalize the transactions. (b) Indicate the income statement effects of the transactions
