Determine the cost of goods used

Assignment Help Finance Basics

Reference no: EM131242111

Q1. Total assets are $525,500 and total liabilities $341,575. Calculate the following:

a) Total assets to total liabilities ratio = _________

b) Total liabilities to total assets ratio = _________

a) 1.65

b) 0.54

a) 1.75

b) 0.25

a) 1.54

b) 0.65

Q2. Average check is calculated by dividing:

Sales revenue for a period by the number of guests served during that period and multiplying by 100

Sales revenue for a period by the number of guests served during that period

Sales revenue for a period into the number of guests during that period

Annual sales revenue by 365

Q3. Common-size vertical Balance Sheets:

Show net income as 100% and express all other items as a percentage of that

Show equity as 100% and express all other items as a percentage of that

Show the change in each income statement account from the Period 1 to Period 2 in percentage terms

Express total assets as 100% and show all other assets as a percentage of that

Q4. Assume an operating department of a restaurant, reported sales revenue of $38,000 in a given month in which its direct costs were $17,100. Its contributory income and contributory income as a percentage of sales revenue would be:

$20,900 and 55%

20,900 and 45%

20,900 and 50%

20,900 and 40%

Q5. A food division had beginning inventory of $4,400, purchases of $8,400, and ending inventory of $2,880 for a given week of operations. Determine the cost of goods used ---for the week

$9,920

$6,920

$8,920

$7,920

Q6. Contributory income is the income for a department, after indirect expenses have been deducted.

True

False

Q7. A direct expense is:

controllable by the accountant employed by the business

deducted from a department's contributory income

the responsibility of, and controllable by, a department head

allocated to a department without a supporting invoice

Q8. A restaurant has current assets of $40,440 and current liabilities of $16,170 at the end of a monthly operating period. Calculate the following:

a) Current Ratio is ________: 1

b) Working Capital is: $_______

a) 2:0:1

b) $24,270

a) 2:3:1

b) $24,270

a) 2:5:1

b) $24,270

Q9. Common-size vertical income statements:

Express total sales revenue as 100% and show all other items as a percentage of that.

Show gross profit as 100% and express all other items as a percentage of that.

Show net income as 100% and express all other items as a percentage of that.

Show the change from last period's income statement to this period's in percentage terms.

Q10. In a bank reconciliation, checks that remain outstanding are:

added to the bank statement balance.

added to the company's cash ledger account.

deducted from the company's cash ledger account.

deducted from the bank statement balance

Q11. Comparative horizontal balance sheets show the:

Change in individual account balances in dollars from one period to the next.

Change in individual account balances in percentage terms from one period to the next.

Change in individual account balances in both dollar and percentage terms from one period to the next.

Various assets, liability, and owners' equity account balances as a percentage of total sales revenue.

Q12. Beginning retained earnings were $86,300. During the year, the company had a net loss of $10,200 and paid dividends of $16,800. Ending retained earnings are:

$92,900

$113,300

$79,700

$59,300

Q13. March sales revenue was $42,840 with cost of sales $21,000. Operating income (before tax) was $8,400. Total guest count was 3,360. Calculate:

a) Average cost of sales per guest: $_______

b) Average operating income per guest $_______

a) $6.25

b) $2.50

a) $6.50

b) $2.25

a) $6.75

b) $2.50

Q14. Indirect expenses:

should be allocated to the operating departments on a square foot basis

should be allocated to the operating departments based on sales revenue

must be allocated to the operating departments to determine true net income

allocated to operating departments will not change overall company net income

Q15.

	Food Division	Beverage Division	Totals
Sales Revenue	$484,200	$144,400	$628,600
Direct Costs	(232,416)	(60,648)	(293,064)

Calculate contributory income and contributory income as a % for each divisions, the overall contributory income, and the overall contributory income as a %:

	Food Division	Beverage Division	Totals
Contributory income	$241,784	$93,752	$335,536
Contributory Income as % Sales	50%	65%	55%

	Food Division	Beverage Division	Totals
Contributory income	$240,416	$95,120	$335,536
Contributory Income as % Sales	50%	66%	45%

	Food Division	Beverage Division	Totals
Contributory income	$251,784	$83,752	$335,536
Contributory Income as % Sales	52%	58%	53%

Q16. An operation has a food and beverage division. The food division uses 3,520 square feet and the beverage division uses 880 square feet. Indirect costs of $14,800 are to be allocated to each operation on a square foot basis. Allocate indirect costs to the two divisions.

Food: $11,440

Beverage: $3,360

Food: $11,840

Beverage: $2,960

Food: $12,170

Beverage: $2,630

Q17. Departmental sales revenue mix refers to the:

deduction of indirect expenses from a department's sales revenue to arrive at contributory income

ratio of indirect expenses allocated to departments based on the basis of sales revenue

ratio of direct expenses allocated to departments based on sales revenue

ratio of sales revenue of various departments to total company sales revenue

Q18. Comparative horizontal balance sheets show the:

Various asset, liability, and stockholder's equity account balances as a percentage of total sales revenue

Change in the individual account balances in percentage terms from one period to the next

Change in the individual account balances in both dollar and percentage terms from one period to the next

Change in the individual account balances in dollars from one period to the next

Q19. A decentralized departmental operation where managers are made accountable for their performance and the performance of employees in their department is known as:

responsibility accounting

decentralized accounting

performance accounting

accounting decentralization

Q20. Sales Revenue

Food Operations = $458,602

Beverage Operations = $180,509

Total Sales Revenue = $639,111

Cost of Food Sales

Beginning Inventory = $6,128

Ending Inventory = $5,915

Purchases = $181,110

Calculate:

The Cost of Food Available: $_______

The Cost of Food Sold: $_______

Cost of Food Sold as Percentage of Sales: ________%

-The Cost of Food Available: $187,238

The Cost of Food Sold: $181,323

The Cost of Food Sold as Percentage of Sales: 39.5%

-The Cost of Food Available: $186,238

The Cost of Food Sold: $180,323

The Cost of Food Sold as Percentage of Sales: 40.6%

-The Cost of Food Available: $187,238

The Cost of Food Sold: $181,323

The Cost of Food Sold as Percentage of Sales: 37.9%

-The Cost of Food Available: $187,238

The Cost of Food Sold: $178,323

The Cost of Food Sold as Percentage of Sales: 41.4%

ITS MCQs kind but need explanation and working also for these numbered questions sir.3, 8,13,14, 15, 16, 17, 19 and 20.

Reference no: EM131242111

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