• Q : Explain the pros and cons of using this method....
    Accounting Basics :

    Planning for capital investments is an important function of management. You are responsible for considering purchasing new equipment for $450,000. It is expected that the equipment will produce net

  • Q : When the ceo and the board of directors are in disagreement....
    Accounting Basics :

    According to the Delaware Supreme Court, when does the role of a director shift from being a "protector of the corporate bastion" to being an "auctioneer" charged with obtaining the highest realizab

  • Q : What is the total carrying cost and the restocking cost....
    Accounting Basics :

    Auto Parts sells 1,200 electric parts per week and then reorders another 1,200 parts. If the relevant carrying cost per electric part is $4 and the fixed order cost is $750, what is the total carryi

  • Q : Which is the approximate beginning balance for the second....
    Accounting Basics :

    Assume Green Leaf Nursery anticipated sales of $500 in the first quarter. Accounts receivable at the beginning of the year was $300. Assuming a collection period of 30 days, which is the approximat

  • Q : Discuss the estimated total carrying cost for the flag....
    Accounting Basics :

    Liberty Celebrations, Inc., manufactures a line of flags. The annual demand for its flag display is estimated to be 100,000 units. The annual cost of carrying one unit in inventory is $1.60, and the

  • Q : How much will internal failure costs change....
    Accounting Basics :

    Regal Products has a budget of $900,000 in 20X6 for prevention costs. If it decides to automate a portion of its prevention activities, it will save $60,000 in variable costs. The new method will re

  • Q : Calculate the total sales values at the split-off point....
    Accounting Basics :

    Iacollia Company makes two products from a common input. Joint processing costs up to the split-off point total $47,600 a year. The company allocates these costs to the joint products on the basis o

  • Q : What is the correct make-or-buy decision....
    Accounting Basics :

    Neely Manufacturing Co. can make 100 units of a necessary component part with the following costs: Direct Materials: $120,000; Direct Labor: $25,000; Variable Overhead: $45,000 and Fixed Overhead:

  • Q : What are the effects on assets and cost of goods sold....
    Accounting Basics :

    If an entity overstates its ending inventory for the current year, what are the effects on assets, cost of goods sold, income before taxes, and retained earnings for the current year?

  • Q : What should the unit sales price be....
    Accounting Basics :

    D'Arabian Company incurred the following costs for 70,000 units: Variable costs were 420,000 and Fixed costs were 392,000. D'Arabian has received a special order form an Armenian company for 3,000 u

  • Q : Why acceptance of the special order would affect net income....
    Accounting Basics :

    Keller Co. manufactures a product with a unit variable cost of $150 and a unit sales price of $264. Fixed manufacturing costs were $720,000 when 10,000 units were produced and sold.

  • Q : Discuss what will be the effect on net income....
    Accounting Basics :

    It costs Mackey Company $22 of variable and $15 of fixed costs to produce one Panini press which normally sells for $57. A foreign wholesaler offers to purchase 1,000 Panini presses at $35 each.

  • Q : How the hours would show total manufacturing....
    Accounting Basics :

    The master budget of Carpenter Co. shows that the planned activity level for next year is expected to be 100,000 machine hours. At this level of activity, the following manufacturing overhead costs

  • Q : Describe how many units should be produced in january....
    Accounting Basics :

    A company budgeted unit sales of 204,000 units for January 2012 and 240,000 for February 2012. The company has a policy of having an inventory of units on hand at the end of each month equal to 30%

  • Q : What were the equivalent units of production for materials....
    Accounting Basics :

    A department adds raw materials to a process at the beginning of the process and incurs conversion costs uniformally throughout the process. For the month of January, there were no units in the begi

  • Q : Would the company want to purchase the new machine....
    Accounting Basics :

    The Zeron Corporation wants to purchase a new machine for its factory operations at a cost of $950,000. The investment is expected to generate $400,000 in annual cash flows for a period of four year

  • Q : What is the book value per share of the common stock....
    Accounting Basics :

    What is the book value per share of the common stock at year-end if total paid-in capital plus retained earnings equals $789,000? Book value per common share $

  • Q : Which corporate costs should be allocated to divisions....
    Accounting Basics :

    The Hassan Corporation has an electric mixer division and an electric lamp division. Of a $20,000,000 bond issuance, the electric mixer division used $14,000,000 and the electric lamp division used

  • Q : At what price would you expect the stock to trade....
    Accounting Basics :

    On September 1, 2011, Miami Corporation's common stock was selling at a market price of $25 per share. On that date, Miami announced a 1 for 4 stock split.

  • Q : How much is the amount of over- or underapplied....
    Accounting Basics :

    During 2012, Cotte Manufacturing expected Job No. 59 to cost $600,000 of overhead, $1,000,000 of materials and $400,000 in labor. Cotte applied overhead based on direct labor cost.

  • Q : How much the preferred and common stockholders should....
    Accounting Basics :

    The stockholders' equity section of Lemay Corporation shows the following on December 31, 2011: Preferred stock - 6%, 4,100 par, 4,000 shares outstanding $ 400,000 Common stock - $20 par.

  • Q : Discuss the amortization for the year ended december....
    Accounting Basics :

    Southlake Corporation issued $900,000 of 8% bonds on March 1, 19X1. The bonds pay interest on March 1 and September 1 and mature in 10 years. Assume the independent cases that follow.

  • Q : What is the purpose of the lower....
    Accounting Basics :

    You have been asked by the financial vice president (VP) to develop a short presentation on the lower?of?cost?or?market method for inventory purposes.

  • Q : Which would be used as the activity base for assembly....
    Accounting Basics :

    Shubelik Company is changing to an activity-based costing method. They have determined that they will use three cost pools. They are setups, inspections, and assembly. Which of the following would

  • Q : How to compute the material price variance....
    Accounting Basics :

    The Lucy Corporation purchased and used 129,000 board feet of lumber in production, at a total cost of $1,548,000. Original production had been budgeted for 22,000 units with a standard material qua

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