Accounting Final Part 2

For the month of May, Latter Company has beginning finished goods inventory of $50,000, ending finished goods inventory of $35,000, and cost of goods manufactured of $125,000. What is the cost of goods sold for May?

$140,000

Assume that the Current Assets for Shine Co. as of Decebmer 31, 2011, are listed below. Assume further that the total Current Liabilites on the same date are $150,000. What is the amount of the working capital for Shine Co. on December 31, 2011? Current assets: Cash $90,000 Temporary Investments 30,000 Accounts Receivable 78,000 Inventories 99,000 Prepaid Expenses 20,700 Total current assets $317,700

$167,700

A company estimated $420,000 of factory overhead cost and 16,000 direct labor hours for the period. During the period, a job was completed with $4,500 of direct materials and $3,000 of direct labor. The direct labor rate was $15 per hour. What is the factory overhead applied to the job?

$5,250 (Hint: You must first determine the Predetermined Factory Overhead Rate and covert the $3,000 direct labor cost to Hours Applied to the Job. Once you have the Predetermined Factory Overhead Rate that is multiplied times Hours Applied to the Job to get the correct answer.)

If sales are $1,000,000, variable costs are $400,000, and fixed costs are $420,000, what is the contribution margin ratio?

60%

Which of the following costs would be included as part of the factory overhead costs of a microcomputer manufacturer?

Depreciation of testing equipment

Which of the following is not considered a cost of manufacturing a product?

Sales salaries

What is the ability of a business to pay its debts as they come due called?

Solvency

What type of analysis is indicated by the following? SALES $600,000 20% COG SOLD $480,000 80% GROSS PROFIT $120,000 100%

Vertical analysis

A tight budget may create which of the following situations?

discouragement

Which of the following is the first step in the budget process?

plan

Which of the following is not considered a cost of manufacturing a product?

salaries of the administrative assistants

A company reports the following: Net income $160,000 Preferred dividends $10,000 Shares of common stock outstanding 20,000 Market price per share of common stock $35 The company's earnings per share on common stock is

$7.50

Dixon Company expects $650,000 of credit sales in March and $800,000 of credit sales in April. Dixon historically collects 70% of its sales in the month of sale and 30% in the following month. How much cash does Dixon expect to collect in April?

$755,000

Assume that the Current Assets for Shine Co. as of December 31, 2011, are listed below. Assume further that the total Current Liabilites on the same date are $150,000. What is the quick ratio (acid test) for Shine Co. on December 31, 2011? Current assets: Cash $90,000 Temporary Investments 30,000 Accounts Receivable 78,000 Inventories 99,000 Prepaid Expenses 20,700 Total current assets $317,700

1.3

Assume fixed costs are $700,000, the unit selling price is $75, and the unit variable costs are $25, what is the break-even sales in units?

14,000

Assume that the Current Assets for Shine Co. as of Decebmer 31, 2011, are listed below. Assume further that the total Current Liabilites on the same date are $150,000. What is the current ratio for Shine Co. on December 31, 2011? Current assets: Cash $90,000 Temporary Investments 30,000 Accounts Receivable 78,000 Inventories 99,000 Prepaid Expenses 20,700 Total current assets $317,700

2.1

Assume that fixed costs are $700,000, the unit selling price is $75, and the unit variable costs are $25, what is the amount of sales in units to realize an operating income of $300,000?

20,000

The total estimated sales for the coming year is 250,000 units. The estimated inventory at the beginning of the year is 22,500 units, and the desired inventory at the end of the year is 30,000 units. What should be the total production units indicated in the production budget?

257,500 units

If the cash account balance on the balance sheet is $25,000, total current assets is $150,000, and total assets equals $500,000, using vertical analysis determine the percentage for cash.

5%

Which of the following is not one of the four basic functions of the management process?

Operating

For which of the following would the job order costing system be appropriate?

Antique furniture repair shop

Job cost sheets accumulate all of the following costs except for which one?

Indirect materials

Which of the following best describes the difference between financial and managerial accounting?

Managerial accounting is not restricted to generally accepted accounting principles, while financial accounting is restricted to GAAP

The journal entry to record the requisition of materials to the factory in job order costing includes a debit to what account?

Work in Process

Which of the following most often use static budgets?

administrative depts