| A company has an overhead application rate of 123% of direct labor costs. How much overhead would be allocated to a job if it required total labor costing $25,000? |
| $15,375. | |
| $20,325. | |
| $307,500. | |
| $25,000. | |
| $30,750. |
2-
| Use the following information about the current year’s operations of a company to calculate the cash paid for merchandise. |
| Cost of good sold | $ 238,000 |
| Merchandise inventory, January 1 | 66,800 |
| Merchandise inventory, December 31 | 68,200 |
| Accounts payable, January 1 | 65,200 |
| Accounts payable, December 31 | 71,800 |
| $246,000. | |
| $243,200. | |
| $230,000. | |
| $238,000. | |
| $232,800. |
3-
| A machine with a cost of $142,000 and accumulated depreciation of $97,000 is sold for $56,000 cash. The amount that should be reported as a source of cash under cash flows from investing activities is: |
| $45,000. | ||
| Zero. This is an operating activity. | ||
| $11,000. | ||
| $56,000. | ||
| Zero. This is a financing activity. | ||
| 4- The Goods in Process Inventory account for AB Manufacturing follows. Compute the cost of jobs completed and transferred to Finished Goods Inventory. | ||
| Goods in Process Inventory | ||||
| | | |||
| Beginning balance | 5,200 | |||
| Direct materials | 47,800 | |||
| Direct labor | 30,300 | |||
| Applied overhead | 16,500 | ? | Finished goods | |
| | | | | |
| Ending balance | 10,300 | |||
| | ||||
| The cost of units transferred to finished goods is: |
| $94,600. | |
| $99,800. | |
| $98,000. | |
| $89,500. | |
| $110,100. | |
5-
| The Goods in Process Inventory account of a manufacturing company that uses an overhead rate based on direct labor cost has a $4,809 debit balance after all posting is completed. The cost sheet of the one job still in process shows direct material cost of $2,100 and direct labor cost of $900. Therefore, the company’s overhead application rate is: |
| 43%. | ||
| 50%. | ||
| 201%. | ||
| 86%. | ||
| 233%. | ||
| 6- Estimated overhead and direct labor costs for the year were $114,500 and $124,700, respectively. During the year, actual overhead was $107,100 and actual direct labor cost was $117,000. The entry to close the over- or underapplied overhead at year-end, assuming an immaterial amount, would include(Round predetermined overhead rate to nearest whole percentage.): | ||
| A debit to Cost of Goods Sold for $540. | |
| A credit to Cost of Goods Sold for $540. | |
| A debit to Goods in Process Inventory for $540. | |
| A credit to Finished Goods Inventory for $540. | |
| A credit to Factory Overhead for $540. |
7-
| In preparing a company’s statement of cash flows for the most recent year on the indirect method, the following information is available: |
| Net income for the year was | $ 62,000 |
| Accounts payable decreased by | 28,000 |
| Accounts receivable decreased by | 35,000 |
| Inventories increased by | 15,000 |
| Cash dividends paid were | 16,000 |
| Depreciation expense was | 40,000 |
| Net cash provided by operating activities was: |
| $94,000. | ||
| $78,000. | ||
| $54,000. | ||
| $150,000. | ||
| $40,000. | ||
| 8 Ajax Company accumulated the following account information for the year: | ||
| Beginning raw materials inventory | $ 6,900 |
| Indirect materials cost | 2,900 |
| Indirect labor cost | 5,900 |
| Maintenance of factory equipment | 3,700 |
| Direct labor cost | 7,900 |
| Using the above information, total factory overhead costs would be: |
| $9,600. | ||
| $20,400. | ||
| $18,500. | ||
| $15,700. | ||
| $12,500. | ||
| 9- A company had net cash flows from operations of $85,200, cash flows from financing of $360,000, total cash flows of $324,000, and average total assets of $2,400,000. The cash flow on total assets ratio equals: | ||
| 3.75%. | |
| 3.55%. | |
| 13.50%. | |
| 15.00%. | |
| 26.30%. |
10-
| Ajax Company accumulated the following account information for the year: |
| Beginning raw materials inventory | $ 6,900 |
| Indirect materials cost | 2,900 |
| Indirect labor cost | 5,900 |
| Maintenance of factory equipment | 3,700 |
| Direct labor cost | 7,900 |
| Using the above information, total factory overhead costs would be: |
11-
| Juliet Corporation has accumulated the following accounting data for the year: |
| Finished goods inventory, January 1 | $ 2,200 |
| Finished goods inventory, December 31 | 3,000 |
| Total cost of goods sold | 8,200 |
| The cost of goods manufactured for the year is: |
| $11,200. | |
| $9,000. | |
| $10,400. | |
| $6,000. | |
| $5,200. |
12-
| Salaries expense | $ 176,000 |
| Salaries payable, January 1 | 7,200 |
| Salaries payable, December31 | 12,200 |
| $171,000. | |
| $183,200. | |
| $176,000. | |
| $163,800. | |
| $181,000. |
13 Typical cash flows from investing activities include each of the following
except:
| Payments to acquire held-to maturity securities of other entities, except cash equivalents. | |
| Proceeds from the sale of equipment. | |
| Proceeds from collecting the principal amount of notes receivable arising from intercompany transactions. | |
| Payments to purchase property, plant and equipment or other productive assets (excluding inventory). | |
| Proceeds from collecting the principal amount of notes receivable arising from customer sales. |
14-
| Trenton reports net income of $247,000 for the year ended December 31, Year 2. It also reports $95,100 depreciation expense and a $5,850 gain on the sale of equipment. Its comparative balance sheet reveals a $38,900 decrease in accounts receivable, a $17,450 increase in accounts payable, and a $13,650 decrease in wages payable. Calculate the net cash provided (used) in operating activities using the indirect method. |
| $344,050. | |
| $406,250. | |
| $384,800. | |
| $378,950. | |
| $283,950. |
A cash equivalent is an investment that:
| Is highly liquid. | |
| All of the choices are correct. | |
| Generally is within 3 months of its maturity date. | |
| Is sufficiently close to its maturity date so its market value is unaffected by interest rate changes. | |
| Is readily convertible to a known amount of cash. |
Bottom of Form Top of Form A cash equivalent is an investment that:
| Is highly liquid. | |
| All of the choices are correct. | |
| Generally is within 3 months of its maturity date. | |
| Is sufficiently close to its maturity date so its market value is unaffected by interest rate changes. | |
| Is readily convertible to a known amount of cash. |
Bottom of Form
Note: need a detailed explanation
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