Reference no: EM13578998
1.) On January 31, Village Bank had 500,000 shares of $3 par value common stock outstanding. On that date, the company declared a 10% stock dividend when the market price of the stock was $62 per share. The immediate effect of this dividend upon Village Bank was:
A.)A reduction in cash of $3,794,500.
B.) A reduction in retained earnings of $3,100,000.
C.) A reduction in retained earnings of $150,000.
D.) A liability to the stockholders of $150,000.
2.) Mayfair Corporation has outstanding 70,000 shares of $1 par value common stock as well as 20,000 shares of 7%, $100 par value cumulative preferred stock. At the beginning of the year, the balance in retained earnings was $800,000, and one year's dividends were in arrears. Net income for the current year is $580,000. Compute the balance in retained earnings at the end of the year if Mayfair Corporation pays a dividend of $3 per share on its common stock this year.
A.)$1,080,000.
B.)$1,670,000.
C.)$890,000.
D.)$310,000.
3.) During the years 2009 through 2011, Powers, Inc., reported the following amounts of net income (dollars in thousands):
Relative to the prior year, the percentage change in net income:
A.)Was the same in 2010 and 2011.
B.)Was larger in 2011 than in 2010.
C.)Was smaller in 2011 than in 2010.
D.)Cannot be determined without knowing how many shares of stock were outstanding.
4.) Hines Cannery issued capital stock in 2009 for $700,000. During 2009 the company paid dividends of $250,000. What is the effect of these events in Hines' statement of cash flows for 2009?
A.)$700,000 cash provided by investing activities, and $250,000 cash disbursed for financing activities.
B.)$700,000 cash provided by financing activities, and $250,000 cash disbursed for investing activities.
C.)$700,000 cash provided by financing activities, and $250,000 cash disbursed for operating activities.
D.)$450,000 net cash provided by financing activities
5.) Direct labor costs in a paint factory would include wages of employees who:
A.)Supervise heavy equipment operators.
B.)Operate paint-mixing machines.
C.)Develop highly secret formulas for new products.
D.Paint the interior of the factory every two years.
6.) Which of the following is a characteristic of manufacturing overhead in a job order cost system?
A.)It is indirectly traceable to specific jobs or units.
B.)It includes the cost of all labor relating to manufacturing operations.
C.)It is assigned to units produced by means of an overhead application rate.
D.)It includes the cost of direct materials used and of indirect labor.
7.) A job order cost system traces direct materials cost to a particular job by means of:
A.)Materials requisitions.
B.)A production budget.
C.)The Materials Inventory controlling account.
D.)A debit to the job cost sheet for the job.
8.) Which of the following costing systems would always use job cost sheets?
A.)Job order costing.
B.)Process costing.
C.)Activity-based costing.
D.)All three systems.
9.) Edwards Auto Body uses a job order cost system. Overhead is applied to jobs on the basis of direct labor hours. During the current period, Job No. 337 was charged $425 in direct materials, $475 in direct labor, and $190 in overhead. If direct labor costs an average of $16 per hour, the company's overhead application rate is:
A.)$7.27 per direct labor hour.
B.)$6.40 per direct labor hour.
C.)$17.50 per direct labor hour.
D.)$40 per direct labor hour.
10.) Marty's Metal Shop uses a job order cost system. It applies overhead to jobs at a rate of 175% of direct labor costs. Job No. 2617 required $800 in direct labor costs. The job was initially budgeted to require $850 in direct labor costs. Overhead applied to Job No. 2617 during the period amounted to:
A.)$850.
B.)$1,400.
C.)$1,275.
D.)Some other amount.
11.) In a job cost system, the Work-in-Process Inventory controlling account may be reconciled to the total of the:
A.)Employee time cards.
B.)Materials requisitions.
C.)Work-in-Process Inventory records for each department or process.
D.)Job cost sheets.
12.) For the month of December, its first month of operations, the Radcliffe Corporation completed and transferred 800 units of product costing $80,000 to produce to Finished Goods Inventory. If Radcliffe sold 650 units during the same month, how much was cost of goods sold for the same period?
A.)$80,000.
B.)$8,000.
C.)$6,500.
D.)$65,000.
13.) The computation of equivalent full units is generally not necessary when:
A.)Beginning work-in-process inventories are significantly larger than ending work-in-process inventories.
B.)Beginning and ending work-in-process inventories differ only slightly.
C.)The number of units in ending work-in-process exceeds the number of units completed and transferred to finished goods during the period.
D.)Per-unit costs become distorted as a result of not computing equivalent full units of production.
14.) During July, the equivalent full units of direct materials added to the product worked on by Department A amounted to a total of 90,000 applied as follows: beginning inventory, 20,000 units; units started and completed in July, 60,000 units; and ending inventory, 10,000 units. Assuming that the cost of direct materials requisitioned by the department in July was $135,000; the amount of the materials cost to be assigned to the ending inventory would be:
A.)$16,875.
B.)$54,000.
C.)$15,000.
D.)$18,000.