• Q : How much contribution margin per unit of limited resource....
    Accounting Basics :

    Ace Company sells office chairs with a selling price of $25 and a contribution margin per unit of $15. It takes 3 machine hours to produce one chair. How much is the contribution margin per unit of

  • Q : What would be total costs....
    Accounting Basics :

    NoIdea Records Company uses activity-based costing. The company produces CDs and DVDs. The estimated costs and expected activity for each of the activity pools follow:

  • Q : Effect of the februar transaction....
    Accounting Basics :

    On February 2, 2011, the Tropic Pool Supply Corporation issued 900 shares of no-par stock for $7 per share. Within two hours of the issue, the stock's price jumped on the UMSL stock exchange to $11

  • Q : What is the target net income....
    Accounting Basics :

    A company requires $1,020,000 in sales to meet its net income target. Its contribution margin is 30%, and fixed costs are $180,000. What is the target net income?

  • Q : What is the number of units the company must sell....
    Accounting Basics :

     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. what is the number of units the company must sell to break even ?

  • Q : Dividends during the current year....
    Accounting Basics :

    Daniels Corporation reports its income from investments under the equity method and recognized income of $15,000 from its investment in Travis Company during the current year. Travis declared no div

  • Q : What is the net income....
    Accounting Basics :

    Buerhrle's CVP income statement included sales of 2,000 units, a selling price of $100, variable expenses of $60 per unit, and fixed expenses of $44,000. what is the Net income ?

  • Q : Specific identifiation inventory costing method....
    Accounting Basics :

    To alleviate the overstocing of refrigertors at a Minneapolis retailer, some were reshipped to a Kansas City retailer where they were still held in inventory at Decmber 31,2009. Happlia paid the cos

  • Q : What should dye do....
    Accounting Basics :

    Dye Company can sell all the units it can produce of either Plain or Fancy but not both. Plain has a unit contribution margin of $96 and takes two machine hours to make and Fancy has a unit contribu

  • Q : Prepare journal entries in good form for transaction....
    Accounting Basics :

    Alamo completed the followingtransactions in January, 2010. Prepare journal entries in good form for these transactions.

  • Q : What is the small fry''s degree of operating leverage....
    Accounting Basics :

    Small Fry Company has sales of $1,000,000, variable costs of $400,000, and fixed costs of $450,000. what is the Small Fry's degree of operating leverage ?

  • Q : What is the incremental effect on net income....
    Accounting Basics :

    If this division is eliminated, the fixed expenses will be allocated to the company's other divisions. What is the incremental effect on net income if the division is dropped?

  • Q : Settle the account in one of two ways....
    Accounting Basics :

    Mary Houser has $1,200 overdue debt for medical books and supplies at Ken's Bookstore. She has only $400 in her checking account and doesn't want her parents to know about the debt. Ken's tells her

  • Q : What is the anticipated cash inflow for the month of april....
    Accounting Basics :

    The company's past experience indicates that 70% of the accounts receivable are collected in the month of sale, 20% in the month following the sale, and 8% in the second month following the sale. w

  • Q : Make a schedule of cost of goods manufactured....
    Accounting Basics :

    Each month, Ace paid $2,000 for secretarial services. Ace also paid sales commissions of $100 for each chair sold. (a) What was the cost per chair completed ? (b) Prepare a schedule of cost of goods

  • Q : Paid in cash until the note matures....
    Accounting Basics :

    Max Company purchased equipment on November 1, 2010 and gave a 16-month, 12% note with a face value of $5,000. Interest will not be paid in cash until the note matures. The December 31, 2010 adjusti

  • Q : What are the total expected cash receipts during september....
    Accounting Basics :

    Stanbrough Company has the following budgeted sales: July $100,000, August $150,000, and September $125,000. 40% of the sales are for cash and 60% are on credit. For the credit sales, 50% are collec

  • Q : What was the labor price variance....
    Accounting Basics :

    Cola Co. manufactures a product with a standard direct labor cost of two hours at $24.00 per hour. During July, 2,000 units were produced using 4,200 hours at $24.40 per hour. what was the labor pri

  • Q : Amount entered in adams''s capital account....
    Accounting Basics :

    After allocating net income and closing the partners' drawing accounts, assume the partners' capital accounts have credit balances as follows: Adams $20,000; Bell $30,000; and Cooley $45,000. Partne

  • Q : Prepare a schedule of interest expense....
    Accounting Basics :

    Osborn Company allocates interest and unamortized discount or premium on the effective interest basis. Prepare a schedule of interest expense and bond amortization for 2010-2012.

  • Q : What is net cash provided by operating activities....
    Accounting Basics :

    Wilton Company reported net income of $40,000 for the year. During the year, accounts receivable decreased by $7,000, accounts payable increased by $3,000 and depreciation expense of $5,000 was reco

  • Q : What is inventory turnover for the year....
    Accounting Basics :

    Waters Department Store had net credit sales of $12,000,000 and cost of goods sold of $9,000,000 for the year. The average inventory for the year amounted to $2,000,000.what is Inventory turnover f

  • Q : Eduardo owns a sole propritorship....
    Accounting Basics :

    Luis is the sole shareholder of Stork Inc. a C corporation, and Eduardo owns a sole propritorship. Both businesses were started in 2010 and make a profit of 80,000 this year. Each owner withdraws 50

  • Q : What was the residual income for northern last year....
    Accounting Basics :

    The Northern Division of the Smith Company had average operating assets totaling $150,000 last year. If the minimum required rate of return is 12%, and if last year's net operating income at Norther

  • Q : Adam transfers inventory with an adjusted basis....
    Accounting Basics :

    Adam transfers inventory with an adjusted basis of 120000, fair market value of 300000, for 80 % of the stock of heron corporation. In addition , he receives cash of 30000. Adam reconizes a capital

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