• Q : The same company would like to purchase....
    Accounting Basics :

    Division Y of the same company would like to purchase 12,800 units each period from Division X. Division Y now purchases the part from an outside supplier at a price of $20 each.

  • Q : What was the labor efficiency variance for the month....
    Accounting Basics :

    The standards for product C54L specify 4.5 DLH per unit @ $12.40 per DLH. Last month 1,560 units of product C54L were produced using 7,000 direct labor-hours at a total direct labor wage cost of $86

  • Q : Why should the product be dropped....
    Accounting Basics :

    The management of Therriault Corp. is considering dropping product U51Y. Data from the accounting system appear below: Sales.......$980,000/ / Variable expenses..........$568,000/

  • Q : Allocated to the operating divisions....
    Accounting Basics :

    Marazzi Corporation has two operating divisions-an East Division and a West Division. The company's Logistics Department services both divisions.

  • Q : What problems might handy-man services encounter....
    Accounting Basics :

    Handy-Man Services is a repair-service company specializing in small household jobs. Each client pays a fixed monthly service fee based on the number of rooms in the house.

  • Q : What would be the effect on the company....
    Accounting Basics :

    The management of Freshwater Corporation is considering dropping product C11B. Data from the company's accounting system appear below.

  • Q : How much is included in aden''s gross estate based....
    Accounting Basics :

    At the time of his death on July 9, 2012, Aden was involved in the following real estate. Fair Market Value (on July 9, 2012) Apartment building $2,100,000 Tree farm 1,500,000 Pastureland 750,000

  • Q : What are the major problems caused by worldwide....
    Accounting Basics :

    What are the major problems caused by worldwide accounting diversity for a multinational corporation? 6. What are the major problems caused by worldwide accounting diversity for international portf

  • Q : Discuss the outstanding of the preferred stock....
    Accounting Basics :

    Durden Co. has $10 par value, 10% cumulative preferred stock. There are 10,000 shares issued and outstanding of the preferred stock. The company also has 100,000 shares of $1 par value common stock.

  • Q : Determine the rate of return on an annual basis....
    Accounting Basics :

    A friend has $4,800 that has been saved from her part-time job. She will need her money, plus any interest earned on it, in six months and has asked for your help in deciding whether to put the mone

  • Q : What was the average price paid for the treasury shares....
    Accounting Basics :

    Kilgore Auto Parts reported the following information at December 31, 2004: - Preferred stock, 10%, $24 par value, cumulative $60,000 - Common stock, $2.50 par value 10,000

  • Q : Determine the allocation of dividends between preferred....
    Accounting Basics :

    Durden Co. has $10 par value, 10% cumulative preferred stock. There are 10,000 shares issued and outstanding of the preferred stock. The company also has 100,000 shares of $1 par value common stock.

  • Q : Effect on net operating income next....
    Accounting Basics :

    The Varone Company makes a single product called a Hom. The company has the capacity to produce 40,000 Homs per year. Per unit costs to produce and sell one Hom at that activity level.

  • Q : Calculate the acid-test ratio at december....
    Accounting Basics :

    Presented here are the comparative balance sheets of Hames, Inc., at December 31, 2011 and 2010. Sales for the year ended December 31, 2011, totaled $580,000.

  • Q : Accountant for the concessions company reported....
    Accounting Basics :

    For each of the following transactions below, prepare the journal entry (if one is required) to record the initial transaction and then prepare the adjusting entry.

  • Q : What is the amount and character of gain or loss soa....
    Accounting Basics :

    Kevin and Bob have owned and operated SOA as a C corporation for a number of years. When they formed the entity, Kevin and Bob each contributed $100,000 to SOA.

  • Q : What is the after-tax cash flow from the salvage value....
    Accounting Basics :

    The company's tax rate is 30%. For tax purposes, the entire initial investment will be depreciated over 7 years without any reduction for salvage value.

  • Q : How much of hoop''s loss is damarcus allowed to deduct....
    Accounting Basics :

    Hoop is organized as a C corporation and Damarcus works full-time as an employee for Hoop. Damarcus has a $20,000 basis in his Hoop stock. How much of Hoop's loss is Damarcus allowed to deduct this

  • Q : What was the overall fixed manufacturing overhead volume....
    Accounting Basics :

    Rostad Corporation applies manufacturing overhead to products on the basis of standard machine-hours. Budgeted and actual overhead costs for the most recent month appear.

  • Q : Prepare a table showing parks urrent ratio....
    Accounting Basics :

    Park Corporation began the month of May with $650,000 of current assets, a current ratio of 2.50:1, and an acid-test ratio of 1.10:1. During the month, it completed the following transactions (the c

  • Q : Predetermined overhead rate....
    Accounting Basics :

    At the end of the year, actual manufacturing overhead costs were $200,000 and applied manufacturing overhead costs were $135,700. If the denominator activity for the year was 20,000 machine-hours.

  • Q : Lhu corporation makes and sells....
    Accounting Basics :

    LHU Corporation makes and sells a product called Product WZ. Each unit of Product WZ requires 2.2 hours of direct labor at the rate of $18.00 per direct labor-hour.

  • Q : Calculate ebanks incs return on equity....
    Accounting Basics :

    For the year ended December 31, 2010, Ebanks, Inc., earned an ROI of 12%. Sales for the year were $96 million, and average asset turnover was 2.4.

  • Q : How much of the raw material should the company....
    Accounting Basics :

    Sartain Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year.

  • Q : The present value of this future cash....
    Accounting Basics :

    A company anticipates a taxable cash receipt of $30,000 in year 2 of a project. The company's tax rate is 30% and its discount rate is 10%. The present value of this future cash flow is closest?

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