accounts- In the Green Company, the beginning and ending balances in Land were $198,000 and

accounts- In the Green Company, the beginning and ending balances in Land were $198,000 and

Question
	
24. In the Green Company, the beginning and ending balances in Land were $198,000 and $240,000 respectively. During the year, land costing $45,000 was sold for $45,000 cash, and land costing $87,000 was purchased for cash. The entries in the reconciling columns of the worksheet will include a:















Save your time!  





    

  • Proper editing and formatting
    • 




  • Free revision, title page, and bibliography
    • 




  • Flexible prices and money-back guarantee
    • 








ORDER NOW

















credit to Land $45,000 and a debit to Sale of Land $45,000 under financing activities.






Make sure you submit a unique essay





Our writers will provide you with an essay sample written from scratch: any topic, any deadline, any instructions.














100% ORIGINAL







ORDER NOW








credit to Land $45,000 and a debit to Sale of Land $45,000 under investing activities.
debit to Land $87,000 and a credit to Purchase of Land $87,000 under financing activities.
net debit to Land $42,000 and a credit to Purchase of Land $42,000 under investing activities.
25. For each of the following items, indicate by using the appropriate code letter, how the item should be reported in the statement of cash flows, using the indirect method. 

A. Added to net income 
B. Deducted from net income 
C. Cash outflow—investing activity 
D. Cash inflow—investing activity 
E. Cash outflow—financing activity 
F. Cash inflow—financing activity 
G. Significant noncash investing and financing activity 

 1. Decrease in accounts payable during a period 

 2. Declaration and payment of a cash dividend. 

 3. Loss on sale of land. 

 4. Decrease in accounts receivable during a period. 

 5. Redemption of bonds for cash. 

 6. Proceeds from sale of equipment at book value. 

 7. Issuance of common stock for cash. 

 8. Purchase of a building for cash. 

 9. Acquisition of land in exchange for common stock. 

 10. Increase in merchandise inventory during a period.
26. The statement of cash flows is the only required financial statement that is not prepared from an adjusted trial balance. What are the sources of information for preparing a statement of cash flows? Explain how the accrual basis of accounting affects the statement of cash flows.
27. The current assets of Kile Company are $150,000. The current liabilities are $100,000. The current ratio expressed as a proportion is
$150,000 ÷ $100,000.
.67 : 1
1.5 : 1
150%.
28. The following information pertains to Soho Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.
Assets
Cash and short-term investments
$45,000
Accounts receivable (net)
25,000
Inventory
20,000
Property, plant and equipment
210,000
Total Assets
$300,000
Liabilities and Stockholders' Equity
Current liabilities
$50,000
Long-term liabilities
90,000
Stockholders' equity-common
160,000
Total Liabilities and Stockholders' Equity
$300,000
Income Statement
Sales
$120,000
Cost of goods sold
66,000
Gross margin
54,000
Operating expenses
30,000
Net income
$24,000
Number of shares of common stock
6,000
Market price of common stock
$20
Dividends per share
.50

What is the current ratio for Soho?
.64
1.30
1.80
1.40
29. The following amounts were taken from the financial statements of Palmer Company:
2010
2009
Total assets
$800,000
$1,000,000
Net sales
720,000
650,000
Gross profit
352,000
320,000
Net income
126,000
117,000
Weighted average number of common shares outstanding
90,000
90,000
Market price of common stock
$35
$39

The profit margin ratio for 2010 is
18.4%.
36.0%.
18.0%.
17.5%.
30. The following financial statement information is available for Howard Corporation:
2010
2009
Stockholders' equity common
$330,000
$270,000
Net sales
784,000
697,000
Cost of goods sold
406,000
377,000
Net income
112,000
80,000
Tax expense
48,000
29,000
Interest expense
14,000
14,000
Dividends paid to preferred 
stockholders
22,000
20,000
Dividends paid to common 
stockholders
15,000
10,000

The return on common stockholders’ equity for 2010 is
25.0%.
37.3%.
30.0%.
27.3%.
31. Direct materials and direct labor of a company total $6,000,000. If manufacturing overhead is $3,000,000, what is direct labor cost?
$6,000,000
$3,000,000
$0
Cannot be determined from the information provided
32. Cost of goods manufactured is calculated as follows:
Direct materials used + direct labor + manufacturing overhead – beginning WIP + ending WIP.
Beginning WIP + direct materials used + direct labor + manufacturing overhead – ending WIP.
Direct materials used + direct labor + manufacturing overhead – ending WIP – beginning WIP.
Beginning WIP + direct materials used + direct labor + manufacturing overhead + ending WIP.
33. Dolan Manufacturing Company's accounting records reflect the following inventories:
Dec. 31, 2010
Dec. 31, 2009
Raw materials inventory
$310,000
$260,000
Work in process inventory
300,000
160,000
Finished goods inventory
190,000
150,000

During 2010, $400,000 of raw materials were purchased, direct labor costs amounted to $500,000, and manufacturing overhead incurred was $480,000.
The total raw materials available for use during 2010 for Dolan Manufacturing Company is
$350,000
$660,000
$260,000
$710,000
34. Given the following data for Mehring Company, compute (A) total manufacturing costs and (B) cost of goods manufactured:
Direct materials used
$180,000
Beginning work in process
$30,000
Direct labor
150,000
Ending work in process
15,000
Manufacturing overhead
225,000
Beginning finished goods
38,000
Operating expenses
263,000
Ending finished goods
23,000
(A)
(B)
$555,000
$540,000
$540,000
$570,000
$570,000
$585,000
$555,000
$570,000
35. Barr Mfg. provided the following information from its accounting records for 2010:
Expected production
30,000 labor hours
Actual production
28,000 labor hours
Budgeted overhead
$600,000
Actual overhead
$580,000

How much is the overhead application rate if Barr bases the rate on direct labor hours?
$18.67 per hour
$20.71 per hour
$20.00 per hour
$19.33 per hour
36. Gulick Company developed the following data for the current year:
Beginning work in process inventory
$120,000
Direct materials used
72,000
Actual overhead
144,000
Overhead applied
108,000
Cost of goods manufactured
132,000
Total manufacturing costs
360,000


Gulick Company's direct labor cost for the year is
$180,000.
$108,000.
$144,000.
$36,000.
37. Greer Company developed the following data for the current year:
Beginning work in process inventory
$68,000
Direct materials used
104,000
Actual overhead
88,000
Overhead applied
92,000
Cost of goods manufactured
450,000
Total manufacturing costs
428,000

How much is Greer Company's direct labor cost for the year?
$164,000
$254,000
$300,000
$232,000
38. Essay Question
(a) Distinguish between
 the two types of cost accounting systems. (b) May a company use both types of cost accounting systems?
39. In applying the high-low method, what is the fixed cost?
Month
Miles
Total Cost
January
80,000
$ 96,000
February
50,000
80,000
March
70,000
94,000
April
90,000
130,000
$14,000
$50,000
$36,000
$17,500
40. Fessler, Inc. has a product with a selling price per unit of $200, the unit variable cost is $75, and the total monthly fixed costs are $300,000. How much is Fessler's contribution margin ratio?
37.5%
62.5%
150%
266.6%
41. A company sells a product which has a unit sales price of $5, unit variable cost of $3 and total fixed costs of $120,000. The number of units the company must sell to break even is
24,000 units.
40,000 units.
60,000 units.
240,000 units.
42. Fixed costs are $300,000 and the variable costs are 75% of the unit selling price. What is the break-even point in dollars?
$1,200,000
$400,000
$900,000
$700,000
43. Sales (50,000 units) $1,000,000, direct materials and direct labor $500,000, other variable costs $50,000, and fixed costs $180,000. What is Boswell break-even point in units?
28,125.
25,556.
16,364.
20,000.
44. A company's planned activity level for next year is expected to be 100,000 machine hours. At this level of activity, the company budgeted the following manufacturing overhead costs:
Variable
Fixed
Indirect materials
$140,000
Depreciation
$60,000
Indirect labor
200,000
Taxes
10,000
Factory supplies
20,000
Supervision
50,000
A flexible budget prepared at the 80,000 machine hours level of activity would show total manufacturing overhead costs of
$384,000.
$408,000.
$360,000.
$288,000.
45. A company's planned activity level for next year is expected to be 100,000 machine hours. At this level of activity, the company budgeted the following manufacturing overhead costs:
Variable
Fixed
Indirect materials
$120,000
Depreciation
$50,000
Indirect labor
160,000
Taxes
10,000
Factory supplies
20,000
Supervision
40,000
A flexible budget prepared at the 90,000 machine hours level of activity would show total manufacturing overhead costs of
$300,000.
$360,000.
$370,000.
$270,000.
46. A company's planned activity level for next year is expected to be 100,000 machine hours. At this level of activity, the company budgeted the following manufacturing overhead costs:
Variable
Fixed
Indirect materials
$90,000
Depreciation
$37,500
Indirect labor
120,000
Taxes
7,500
Factory supplies
15,000
Supervision
30,000
A flexible budget prepared at the 90,000 machine hours level of activity would show total manufacturing overhead costs of
$202,500.
$277,500.
$225,000.
$270,000.
47. Match the items below by entering the appropriate code letter in the space provided.
Direct fixed costs
Investment center
Flexible budget
Return on Investment
Budgetary control
Indirect fixed costs
Controllable costs
Profit center
Static budget
Responsibility reporting system
Responsibility accounting
Management by exception
1.
A measure of the profitability of an investment center computed by dividing controllable margin (in dollars) by average operating assets.
2.
A part of management accounting that involves accumulating and reporting revenues and costs on the basis of the individual manager who has the authority to make the day-to-day decisions about the items.
3.
A projection of budget data at one level of activity.
4.
The use of budgets to control operations.
5.
Costs which are incurred for the benefit of more than one profit center.
6.
A responsibility center that incurs costs, generates revenues, and has control over the investment funds available for use.
7.
The review of budget reports by top management directed entirely or primarily to differences between actual results and planned objectives.
8.
The preparation of reports for each level of responsibility shown in the company's organization char.
9.
Costs that relate specifically to a responsibility center and are incurred for the sole benefit of the center.
10.
Costs that a manager has the authority to incur within a given period of time.
11.
A responsibility center that incurs costs and also generates revenues.
12.
A projection of budget data for various levels of activity.
48. Essay Question
The master budget and flexible budgets are important aids to management in performing the management functions of planning and control. Briefly describe how planning and control are facilitated by preparing a master budget and flexible budgets. How are these two types of budgets interrelated with planning and control?
49. Essay Question
Managers are motivated to accomplish objectives if they feel that their efforts will be fairly evaluated. Explain why an organization may use different bases for evaluating the performance of managers of different types of responsibility centers.