Reference no: EM13929014

Question 1:

Product costs:

Question 2:

Use the following information and the indirect method to calculate the net cash provided or used by operating

activities:

Question 3:

Actual fixed overhead for Kapok Company during March was $92,780. The flexible budget for fixed overhead this

period is $89,000 based on a production level of 5,000 units. If the company actually produced 4,200 units what is the fixed

overhead volume variance for March?

Question 4:

A company's income statement showed the following: net income, $124,000; depreciation expense, $30,000; and

gain on sale of plant assets, $14,000. An examination of the company's current assets and current liabilities showed the

following changes as a result of operating activities: accounts receivable decreased $9,400; merchandise inventory increased

$18,000; prepaid expenses decreased $6,200; accounts payable increased $3,400. Calculate the net cash provided or used by

operating activities.

Question 5:

Chance, Inc. sold 3,000 units of its product at a price of $72 per unit. Total variable cost per unit is $51, consisting

of $32 in variable production cost and $19 in variable selling and administrative cost. Compute the manufacturing margin for

the company under variable costing.

Question 6:

A company has fixed costs of $90,000. Its contribution margin ratio is 30% and the product sells for $75 per unit.

What is the company's break-even point in dollar sales?

Question 7:

A corporation issued 300 shares of its $5 par value common stock in payment of a $1,800 charge from its

accountant for assistance in filing its charter with the state. The entry to record this transaction will include:

Question 8:

The three major cost components of a manufactured product are:

Question 9:

The amount by which the overhead applied to jobs during a period exceeds the overhead incurred during the

period is known as:

Question 10:

Which of the following journal entries correctly records the current month's activity where $125,000 of raw material

was purchased for cash, and $75,000 of direct material and $30,000 of indirect materials were used in the production process?

Question 11:

Advanced Company reports the following information for the current year. All beginning inventory amounts

equaled $0 this year.

Question 12:

When using the indirect method to calculate and report net cash provided or used by operating activities, which of

the following is subtracted from net income?

Question 13:

Six months ago, a company purchased an investment in stock for $65,000. This investment is considered

available-for-sale. The current market value of the stock is $68,500. The company should record a:

Question 14:

A company manufactures and sells a product for $120 per unit. The company's fixed costs are $68,760, and its

variable costs are $90 per unit. The company's break-even point in units is:

Question 15:

Bradford Company budgeted 4,000 pounds of material costing $5.00 per pound to produce 2,000 units. The

company actually used 4,500 pounds that cost $5.10 per pound to produce 2,000 units.

Question 16:

Montaigne Corp. has the following information about its standards and production activity in November:

Question 17:

A manufacturing company has a beginning finished goods inventory of $14,600, raw material purchases of

$18,000, cost of goods manufactured of $32,500, and an ending finished goods inventory of $17,800. The cost of goods sold

for this company is:

Question 18:

Preferred stock is often issued:

Question 19:

A company reports the following information for the current year which is its first year of operations.

Question 20:

A corporation issued 5,000 shares of $10 par value common stock in exchange for some land with a market

value of $60,000. The entry to record this exchange is:

Question 21:

The following data are available for a company's manufacturing activities:

Question 22:

Employee morale, timeliness of delivery, and the reactions of customers are examples of nonfinancial factors

which should be considered when making a managerial decision.

Question 23:

Accounting standards:

Question 24:

A company declared a $0.50 per share cash dividend. The company has 20,000 shares authorized, 9,000 shares

issued, and 8,000 shares of common stock outstanding.

Question 25:

A decrease in the fair market value of a security that has not yet been realized through an actual sale of the security is called

a(n):

Question 26:

Estimated overhead and direct labor costs for the year were $112,500 and $125,000, respectively. During the

year, actual overhead was $107,400 and actual direct labor cost was $120,000. The entry to close the over- or underapplied

overhead at year-end, assuming an immaterial amount, would include:

Question 27:

At acquisition, debt securities are:

Question 28:

Vision Tester, Inc., a manufacturer of optical glass, began operations on February 1 of the current year. During

this time, the company produced 900,000 units and sold 800,000 units at a sales price of $12 per unit. Cost information for

this year is shown below.

Question 29:

Long-term investments can include: