ADVANCED COST ACCOUNTING MULTIPLE CHOICE QUESTIONS 1. Absorption costing measures contribution to profit as: A) Sales less unit- level costs spent of goods sold. B) Sales less absorption cost of goods sold. C) Sales less absorption cost of goods sold. D) Sales less all costs including operating expenses. 2. In a job-
Given the following errors: The bank recorded a deposit of $200 as $2,000. The company's bookkeeper mistakenly recorded a deposit of $530 as $350. The company's bookkeeper mistakenly recorded a payment of $250 received from a customer as $25 on the bank deposit slip. The bank caught the error and made the deposit for the
The Savannah Machine Tool Company has an automated production process, and production activity is quantified in terms of machine hours. It uses a standard-costing system. The annual static budget for 20x6 called for 6,000 units to be produced, requiring 30,000 machine hours. The standard-overhead rate for the year was computed u
Balls and Bats, Inc. purchased equipment on January 1, 2005, at a cost of $100,000. The estimated useful life is 4 years with a salvage value of $10,000. For this assignment you are to complete the following tasks: Prepare two different depreciation schedules for the equipment - one using the double-declining balance met
Eliminate the wrong answer (or write the answer A, B, C, or D next to the question). 9. Which of the following is not a stock exchange? A. NYSE B. NSADAQ C. AMEX D. NASD 12. General Motors, ExxonMobil, Coca Cola, and IBM, are a few of the big companies listed on what stock exchange? A. NYSE B. NSAD
North Manufacturing has a demand for 1,000 pumps each year. The cost of a pump is $50. It cost North Manufacturing $40 to place a order, and the carrying cost is 25% of the unit cost. If pumps are ordered in quantities of 200, North Manufacturing can get a 3% discount on the cost of pumps. Should North Manufacturing orders 200
What are the two types of pricing environments for sales to external parties? What is a transfer price? Why is determining a fair transfer price important to division managers?
Standard absorption cost per unit.. A cost analyst for Stamper Manufacturing Co. has assembled the following data about the Model 24 stamp pad: The piece of sheet metal from which six pad cases can be made costs $0.18. This amount is based on the number of sheets in a 4,000 pound bundle of sheet metal, which is the usual pur
What is the solution to the following: Claire's Antiques has fixed cost of $75,000 per month. Each antique has the following identifiable sales price, variable material costs, and fixed monthly costs, respectively. Sales Price Variable Material Costs Fixed Monthly Costs Clocks $700
Costs can be classified into two categories, fixed and variable costs. These costs behave differently based on the level of sales volumes. Suppose we are running a restaurant and have identified certain costs along with the number of annual units sold of 1000. Item: Raw Materials (cost for hamburgers) Total Annual Cost: 650
(See attached file for full problem description)
Relevant Costing Problems Air Frisco owns a single jet aircraft and operates between San Francisco and the Fiji Islands. Flights leave San Francisco on Mondays and Thursdays and depart from Fiji on Wednesdays and Saturdays. Air Frisco cannot offer any more flights between San Francisco and Fiji. Only tourist-class seats are
In this problem I need help calculating the dollar value of DimLok's current annual fixed costs, determinating the number of units that DimLok must sell in order to achieve both profit objectives considering all constraints. Also assuming that Don Barnes decides to sell 40,000 units at $200 per unit and 24,000 units at $180 per
How can I make a difference between a favorable and unfavorable variance?
KC manufactures part KE456 used in several of its models. Monthly production costs for 1,000 units are as follows: Direct materials $ 40,000 Direct labor 10,000 Variable overhead costs 30,000 Fixed overhead costs 20,000 Total costs $100,000 It is estimated that 10% of the fixed overhead costs assigned to
Profits SBU's: Compairson of Variable and Full Costing Harvard Company manufactures hair brushes that sell at wholesale for $2 per unit. The company had no beginning inventory in 2004. These data summarize the 2004 and 2005 operations. (see chart in the attached file) Required: Prepare the following, using a spreadsh
Kristen Langdon, the sales manager at a large bicycle manufacturer, has secured an order from a major department store that is due to ship on November 1. She is eager to please the department store in the hop of getting more future business. She asks Bryan Collins, the company's purchasing agent, to procure all necessary parts
Scenario: Andragon Manufacturing, a small private company, has recently hired you as their accounting department supervisor. You have been told that your role will also include some of the day-to-day accounting. John Edwards, the company's CEO and principal shareholder, has told you during your hiring interview that his str
Scenario: Andragon Manufacturing, a small private company, has recently hired you as their accounting department supervisor. You have been told that your role will also include some of the day-to-day accounting. John Edwards, the company's CEO and principal shareholder, has told you during your hiring interview that his s
Utica company's net accounts receivable was $250,000 at December 31, 2004 and $300,000 at December 31,2005. Net cash sales for 2005 were $100,000. The accounts receivable turnover for 2005 was 5.0, and this turnover figure was computed from net credit sales for the year. Required: What was Utica's net sales for 2005?
Barker Enterprises has met all production requirements for the current month and has an opportunity to produce additional units of product with its excess capacity. Unit selling prices and costs for three models of one of its product lines are as follows: No Standard
Uecker Enterprise expects sales of 20,000 units of DPI1000 in September. DPI1000 is its most popular high performance desktop model. The sales manager is confident that, between October and December, the total sales will have a 50% growth rate each month from the month before. Each unit requires 40 sets of Alpha-5 chip. The firm
Provide a two- or three-sentence response that argues for or against (indicate which) each of these statements: a. Accounting is an exact science b. Managers choose accounting procedures that produce the most accurate picture of the company's operating performance and financial condition. c. Accounting standards in the Unit
(See attached file for full problem description) --- Complete problem 11.45 in Hilton. As you complete the problem, refer to the following suggestions: You will be developing a cost estimating formula using three different approaches. a.      Using account analysis, it is suggested that costs be divide
Scenario: Andragon Manufacturing, a small private company, has recently hired you as their accounting department supervisor. You have been told that your role will also include some of the day-to-day accounting. John Edwards, the company's CEO and principal shareholder, has told you during your hiring interview that his str
Amaya Corp. produced 150,000 watches that sold for $24 each during 2006. The company determined that fixed manufacturing cost per unit was $6 per watch. The company reported a $600,000 gross margin on its 2006 financial statements. Determine the total variable cost, the variable cost per unit, and the total contribution margi
The following ledger accounts are used by Paola Greyhound Park Accounts Receivable Prepaid Printing Prepaid Rent Unearned Admissions Revenue Printing Expense Rent Expense Admissions Revenue Concessions Revenue INSTRUCTIONS For each of the following transactions below, prepare the journal entry (if one is re
Determining Fixed Cost per Unit Simon Corp. incurs the following annual fixed costs: Item Cost Depreciation $ 30,000 Officers' Salaries 100,000 Long-term lease 40,000 Propert
The cost formula for monthly customer order processing cost has been established as $100 + $0.15 per order. It is expected that 5,600 orders will be processed in May and 6,400 in June. Total order processing costs for May and June combined will be estimated to be: $ 940 $1060 $2000 $2500
Given the following errors: The bank recorded a deposit of $200 as $2,000. The company's bookkeeper mistakenly recorded a deposit of $530 as $350. The company's bookkeeper mistakenly recorded a payment of $250 received from a customer as $25 on the bank deposit slip. The bank caught the error and made the deposit for t