acc

Which of the following would be considered a cash inflow in the financing activities section of the statement of cash flows?

Issuing bonds payable.

Shoshoni Corporation prepares its statement of cash flows using the indirect method. Which of the following would be added to net income in the operating activities section of the statement? Increase in Accounts ReceivableDecrease in Accounts PayableA)YesYesB)YesNoC)NoYesD)NoNo

NO NO choice D

Which costs will change with a decrease in activity within the relevant range? Multiple ChoiceTotal fixed costs and total variable cost.Unit fixed costs and total variable cost.Unit variable cost and unit fixed cost.Unit fixed cost and total fixed cost.

Unit fixed costs and total variable cost.

Contribution margin is: Multiple ChoiceSales less cost of goods sold.Sales less variable production, variable selling, and variable administrative expenses.Sales less variable production expense.Sales less all variable and fixed expenses.

sales less variable

In the standard cost formula Y = a + bX, what does the "X" represent? Multiple Choicetotal costtotal fixed costthe level of activityvariable cost per unit

the level of activity

A factory supervisor's wages are classified as: Indirect laborFixed manufacturing overheadA)NoNoB)YesYesC)YesNoD)NoYes

yes yes

Last year Burch Corporation's cash account decreased by $6,000. Net cash provided by (used in) investing activities was $13,000. Net cash provided by (used in) financing activities was $(30,000). On the statement of cash flows, the net cash provided by (used in) operating activities was:

11,000

The cost of electricity for running production equipment is classified as: Conversion costPeriod costA)YesNoB)YesYesC)NoYesD)NoNo

Choice A

Wofril Corporation uses the cost formula Y = $5,300 + $0.60X for the maintenance cost, where X is machine-hours. The August budget is based on 8,000 hours of planned machine time. Maintenance cost expected to be incurred during August is: Y = $5,300 + ($0.60 per unit × X) = $5,300 + ($0.60 per unit × 8,000 hours) = $5,300 + $4,800 = $10,100

$10,100

At an activity level of 7,200 machine-hours in a month, Falks Corporation's total variable production engineering cost is $556,416 and its total fixed production engineering cost is $226,008. What would be the total production engineering cost per machine-hour, both fixed and variable, at an activity level of 7,300 machine-hours in a month? Assume that this level of activity is within the relevant range. (Round intermediate calculations to 2 decimal places.) Variable cost per machine-hour = $556,416 ÷ 7,200 machine-hours = $77.28 per machine-hour Fixed cost per machine-hour at 7,300 machine-hours = $226,008 ÷ 7,300 machine-hours = $30.96 per machine-hour Total cost = Variable cost + Fixed cost = $77.28 per machine-hour + $30.96 per machine-hour = $108.24 per machine-hour

$108.24

The company's net income for the year was $18 and it did not sell or retire any property, plant, and equipment during the year. Cash dividends were $4. The net cash provided by (used in) investing activities for the year was: Investing activities: Purchase of property, plant, and equipment ($515 − $470)$ (45)Net cash provided by (used in) investing activities$ (45)

(45)

The company's net income for the year was $152 and it did not issue any bonds or repurchase any of its common stock during the year. Cash dividends were $40. The net cash provided by (used in) financing activities for the year was: +/- Bond Payable +/- issue stock - dividens =

(49)

Majorn Auto Parts Store had net income of $81,000 for the year just ended. Majorn collected the following additional information to prepare its statement of cash flows for the year: Increase in accounts receivable$ 102,000Decrease in inventory$ 18,000Decrease in accounts payable$ 35,000Increase in retained earnings$ 29,000Cash received from sale of building$ 215,000Gain on sale of building$ 47,000Depreciation expense$ 32,000 Majorn uses the indirect method to prepare its statement of cash flows. What is Majorn's net cash provided by (used in) operating activities? NI+Dep-AR+INV-35-AP-Gain

(53)

Cash dividends were $10. The company sold equipment for $18 that was originally purchased for $10 and that had accumulated depreciation of $5. The net cash provided by (used in) operating activities for the year was: Net income $ 39Adjustments to convert net income to a cash basis: Depreciation ($233 − $213 + $5)$ 25 Decrease in accounts receivable ($65 − $77)12 Increase in inventory ($47 − $40)(7) Increase in accounts payable ($61 − $54)7 Decrease in accrued liabilities ($15 − $16)(1) Increase in income taxes payable ($36 − $35)1 Gain on sale of equipment(13)24Net cash provided by (used in) operating activities $ 63

(63)

Phaup Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows: Average Cost per UnitDirect materials$ 4.85Direct labor$ 4.00Variable manufacturing overhead$ 1.75Fixed manufacturing overhead$ 3.90Fixed selling expense$ 0.90Fixed administrative expense$ 0.60Sales commissions$ 0.50Variable administrative expense$ 0.45 For financial reporting purposes, the total amount of period costs incurred to sell 5,000 units is closest to: Sales commissions$ 0.50Variable administrative expense0.45Variable selling and administrative expense per unit$ 0.95 Total variable selling and administrative expense($0.95 per unit × 5,000 units sold)$ 4,750Total fixed selling and administrative expense($0.90 per unit × 5,000 units + $0.60 per unit × 5,000 units)7,500Total period (nonmanufacturing) cost$ 12,250

12250

The following costs were incurred in May: Direct materials$45,300Direct labor$23,800Manufacturing overhead$17,500Selling expenses$16,800Administrative expenses$30,200 Prime costs during the month totaled:

69100

The company's net income for the year was $91 and it did not sell or retire any property, plant, and equipment during the year. Cash dividends were $22. The net cash provided by (used in) operating activities for the year was: NI91+ difference in dep+ /- A/R (went down/ cash up) +/-Inv (went up/ cash Down)+/-Acc Pay

96

Which of the following is an example of a period cost in a company that makes clothing? Multiple ChoiceFabric used to produce men's pants.Advertising cost for a new line of clothing. Factory supervisor's salary.Monthly depreciation on production equipment.

Advertising cost for a new line of clothing.

The following data have been collected for four different cost items. Cost ItemCost at 100 unitsCost at 140 unitsW$8,000$10,560X$5,000$ 5,000Y$6,500$ 9,100Z$6,700$ 8,580 Which of the following classifications of these cost items by cost behavior is correct? Cost WCost XCost YCost ZA)variablefixedmixedvariableB)mixedfixedvariablemixedC)variablefixedvariablevariableD)mixedfixedmixedmixed

B

The cost of direct materials is classified as a: Conversion costPrime costA)NoNoB)YesNoC)NoYesD)YesYes

C

When computing the net cash provided by operating activities using the indirect method on the statement of cash flows, which item below would NOT be added to net income?

Decrease in accounts payable.

Which of the following is NOT a period cost? Multiple ChoiceDepreciation of factory maintenance equipment.Salary of a clerk who handles customer billing.Insurance on a company showroom where customers can view new products.Cost of a seminar concerning tax law updates that was attended by the company's controller.

Depreciation of factory maintenance equipment.

Which of the following statements is true when referring to fixed costs? Multiple ChoiceCommitted fixed costs arise from the annual decisions by management.As volume increases, unit fixed cost and total fixed cost will change.Fixed costs increase in total throughout the relevant range.Discretionary fixed costs can often be reduced to zero for short periods of time without seriously impairing the long-run goals of the company.

Discretionary fixed costs can often be reduced to zero for short periods of time without seriously impairing the long-run goals of the company.

An example of a committed fixed cost would be: Multiple Choicetaxes on real estate.Correctmanagement development programs.public relations costs.advertising programs.

Estate tax

Which of the following would be classified as a financing activity on the statement of cash flows?

Repurchasing capital stock from owners.

In a statement of cash flows, the sale of a long-term investment would ordinarily be classified as:

an investing activity

A manufacturing company prepays its insurance coverage for a three-year period. The premium for the three years is $2,100 and is paid at the beginning of the first year. Sixty percent of the premium applies to manufacturing operations and forty percent applies to selling and administrative activities. What amounts should be considered product and period costs respectively for the first year of coverage? ProductPeriodA)$ 280$ 420B)$ 420$ 280C)$ 700$ 0D)$ 0$ 700

b

Product costs that have become expenses can be found in: Multiple Choiceperiod costs.selling expenses.cost of goods sold.administrative expenses.

cost of goods sold

For the past 8 months, Jinan Corporation has experienced a steady increase in its cost per unit even though total costs have remained stable. This cost per unit increase may be due to _____________ costs if the level of activity at Jinan is _______________. Multiple Choice fixed, decreasing fixed, increasingvariable, decreasingvariable, increasing

fixed, decreasing

The cost of lubricants used to grease a production machine in a manufacturing company is an example of a(n):

indirect material cost.

Materials used in a factory that are not an integral part of the final product, such as cleaning supplies, should be classified as:

manufacturing overhead.

An example of a committed fixed cost would be: Multiple Choicetaxes on real estate.management development programs.public relations costs.advertising programs.

public relations costs.