• Q : What mark up percentage is the company using....
    Accounting Basics :

    A manufacturing company produces and sells 20,000 units of a single product. Total production costs are $14/unit. If the total sales are $560,000 what mark up percentage is the company using?

  • Q : Discounting the purchase transaction....
    Accounting Basics :

    The purchase agreement specifies an immediate down payment of $200,000 and semiannual payments of $76,952 beginning at the end of 6 months for 5 years. What is the interest rate, to the nearest perc

  • Q : What is the price if a markup of 40% on total cost....
    Accounting Basics :

    A company has $25 per unit in variable costs and $1,000,000 per year in fixed costs. Demand is estimated to be 100,000 units annually. What is the price if a markup of 40% on total cost is used to d

  • Q : Capitalized lease liability based problem....
    Accounting Basics :

    Neal does not know the interest rate implicit in the lease; N's incremental borrowing rate is 9%. The rounded present value of an ordinary annuity for nine years at 9% is 6.0. What amount should N

  • Q : What will the customer be charged....
    Accounting Basics :

    A customer places 10 orders with a total direct cost of $3,000, orders 300 separate items, and makes 5 returns. What will the customer be charged?

  • Q : What is the net advantage or disadvantage of re-working....
    Accounting Basics :

    The Tobias Company has 12 obsolete computers that are carried in inventory at a cost of $13,200. If these computers are upgraded at a cost of $7,500, they could be sold for $19,500. Alternatively, t

  • Q : Problem based on accrued interest....
    Accounting Basics :

    Theresa, a cash basis taxpayer, purchased a bond on July 1, 2007, for $10,000, plus $400 of accrued interest. The bond paid $800 of interest each December 31. On March 31, 2010, she sold the bond fo

  • Q : Determining the inventory balance....
    Accounting Basics :

    suppose that Badger's 2010 ending inventory, valued at year-end costs, was $143,000 and that the relative cost index for this inventory in 2010 was 1.10. In determining the inventory balance should

  • Q : What will be their allocated overhead....
    Accounting Basics :

    Cost allocations are computed to 4 significant digits. Resulting values are rounded to the whole dollar. If the purchasing department makes 140,260 copies this year what will be their allocated over

  • Q : Proper year-end adjustment for the expired insurance....
    Accounting Basics :

    Waterfalls Corporation purchased a one-year insurance policy in January 2009 for $60,000. The insurance policy is in effect from March 2009 through February 2010. If the company neglects to make the

  • Q : How many more units must be sold to cover this cost....
    Accounting Basics :

    Briar Tek has fixed costs of $700,000. Selling price per unit is $180 and Variable cost per unit is $110. A new employee suggests that Briar Tek sponsor a little league baseball team as a form of ad

  • Q : Corporation taxable income problem....
    Accounting Basics :

    For tax purposes, the corporation has elected to take advantage of the maximum benefit for epensing organizational costs. No additional book/tax differences exist. For the year ended December 31, Ye

  • Q : How many units must briar tek sell....
    Accounting Basics :

    Briar Tek has fixed costs of $700,000. Selling price per unit is $180 and Variable cost per unit is $110. How many units must Briar Tek Sell to earn a profit of $560,000?

  • Q : What the variable utility cost per unit,....
    Accounting Basics :

    . Average production was 20,000 units per month. Utilities cost was $8,250 in May and $10,500 in October.what The variable utility cost per unit, to the nearest cent, is:

  • Q : What are the fixed costs....
    Accounting Basics :

    A company is using the high-low method and has determined the following production for the months of January, February, March, and April of 6,000, 5,000, 5,550, and 2,000, respectively. During the s

  • Q : Consolidated balance sheet of pennie....
    Accounting Basics :

    Stroud resold the land to an unrelated party for $100,000 on September 2Refer to Scenario 4-1. The land will be included in the December 31, 20X2 consolidated balance sheet of Pennie, Inc. and Subsi

  • Q : How many units of product x must be sold....
    Accounting Basics :

    A company sells two products - X and Y. Product X is sold at a price of $50 and has a variable cost of $25. Product Y is sold at a price of $25 and has a variable cost of $20. Product X and Y are so

  • Q : Should john''s camera go forward with the change....
    Accounting Basics :

    John's Camera will lower its fixed to $80,000 but raise its variable costs to $90 per unit. Should John's Camera go forward with the change in production process?

  • Q : How much are total sunk costs....
    Accounting Basics :

    In making the decision about buying the new machine, how much are total sunk costs?

  • Q : Under what situation should the company lower the price....
    Accounting Basics :

    Materials and labor are the only variable costs. Under what situation should the company lower the price of its windows?  

  • Q : What is their production cost per unit for may....
    Accounting Basics :

    In June they plan to produce 3,000 units. What is their production cost per unit for May and total production costs for June?

  • Q : How operating income will change by....
    Accounting Basics :

    At its present level of operations, a small manufacturing firm has total variable costs equal to 65% of sales and total fixed costs equal to 20% of sales. If sales change by $1.00, how operating inc

  • Q : How much should the company be willing to invest....
    Accounting Basics :

    Rumper Company has 2,000 obsolete ratchers in its inventory which have a cost of $22 each. If the ratchers are reworked they could be sold for $37 each. If sold as-is, the revenue would be only $10

  • Q : Conversion of the preferred stock into common stock....
    Accounting Basics :

    What total amount should be credited to additional paid-in capital from common stock as a result of the conversion of the preferred stock into common stock?

  • Q : How much will marcie''s adjusted gross income increase....
    Accounting Basics :

    Alice, and Pat of $20,000 each ($60,000 total). How much will Marcie's adjusted gross income increase as a result of the above items?

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