• Q : What is the sunk cost in this situation....
    Accounting Basics :

    Wilson Company is considering replacing equipment which originally cost $500,000 and which has $460,000 accumulated depreciation to date. A new machine will cost $790,000. What is the sunk cost in

  • Q : Wyco company manufactures toasters....
    Accounting Basics :

    Wyco Company manufactures toasters. For the first 8 months of 2011, the company reported the following operating results while operating at 75% of plant capacity.

  • Q : Explain the opportunity cost of the purchase of the land....
    Accounting Basics :

    A business is considering a cash outlay of $500,000 for the purchase of land, which it could lease for $40,000 per year. If alternative investments are available which yield a 21% return, the oppor

  • Q : Acquire land and building the company....
    Accounting Basics :

    Spitfire Company was incorporated on January 2, 2011, but was unable to begin manufacturing activities until July 1, 2011, because new factory facilities were not completed until that date.

  • Q : Why the standard material price exceeds actual price....
    Accounting Basics :

    An unfavorable materials quantity variance indicates that: actual usage of material exceeds the standard material allowed for output. standard material allowed for output exceeds the actual usage of

  • Q : Pizzas for a special charity event....
    Accounting Basics :

    In march of year 3, Big Al's receives a special order from an athletic arena to purchase 5,000 meat pizzas and 3,000 veggie pizzas for a special charity event.

  • Q : Explain how these cash flows will appear in the company....
    Accounting Basics :

    During the current year, Maine Savings and Loan Association made new loans of $15 million. In addition, the company collected $36 million from borrowers, of which $30 million was interest revenue.

  • Q : Describe the total prime cost and total conversion cost....
    Accounting Basics :

    Definitions of manufacturing concepts Interstate Manufacturing produces brass fasteners and incurred the following costs for the year just ended: Materials and supplies used Brass $75,000

  • Q : How to received first semiannual interest....
    Accounting Basics :

    Journalize the entries to record the following selected bond investment transactions for Olson Technologies: For all journal entries: If an amount box does not require an entry, leave it blank.

  • Q : Calculate the new equipment for the entire five year....
    Accounting Basics :

    Benson Co. is considering disposing of a machine with a book value of $12,500 and estimated remaining life of five years. The old machine can be sold for $1,500. A new high-speed machine can be purc

  • Q : Explain an income statement for the year ended december....
    Accounting Basics :

    Schedule of cost of goods manufactured, income statement The following information was taken from the ledger of Jefferson Industries, Inc.: Direct labor $85,000 Administrative expenses $59,000

  • Q : Compute the average costs....
    Accounting Basics :

    Compute the cost of goods sold associated with the sale of Baby Buddy. Assume that there is a first-in, first-out (FIFO) flow through the Finished Goods Inventory account and that all units complete

  • Q : How to discuss the cost of the finished goods inventory....
    Accounting Basics :

    Manufacturing statements and cost behavior Tampa Foundry began operations during the current year, manufacturing various products for industrial use.

  • Q : Adjusting journal entry to record....
    Accounting Basics :

    On January 1, 2010, Valuation Allowance for Trading Investments has a credit balance of $8,700. On December 31, 2010, the cost of the trading securities portfolio was $52,400.

  • Q : Explain the marketing costs of a soft drink bottler....
    Accounting Basics :

    Product costs and period costs The costs that follow were extracted from the accounting records of several different manufacturers:

  • Q : What is hardwood total manufacturing cost....
    Accounting Basics :

    Hardwood Inc. produces wooden crates used for shipping products by ocean liner. In 2010, Hardwood incurred the following costs. Wood used in crate production $54,460.

  • Q : What is its present value and its future value....
    Accounting Basics :

    Present and Future values of cash flow stream. An investment will pay $100 at the end of each of the next 3 years, $200 at the end of the Year 4, $300 at the end of Year 5 and $500 at the end of yea

  • Q : What price should the investor offer....
    Accounting Basics :

    During the past several years the annual net income of Avery Company has averaged $540,000. At the present time the company is being offered for sale.

  • Q : How much more would he have received....
    Accounting Basics :

    Oe Notsosmart invested $10,000 at 8% simple interest for 5 years. How much more would he have received if he had received compound interest annually at the same rate?

  • Q : Prepare a master budget for the three-month....
    Accounting Basics :

    You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earring to various retail outlets located in shopping malls across the country.

  • Q : Explain the definitions of manufacturing concepts....
    Accounting Basics :

    Definitions of manufacturing concepts Interstate Manufacturing produces brass fasteners and incurred the following costs for the year just ended: Materials and supplies used Brass $75,000 Repair par

  • Q : Why the blue loft uses the straight-line method....
    Accounting Basics :

    At the time of Green Tower's acquisition, Blue Loft's equipment had a remaining estimated useful life of 3 years. Blue Loft uses the straight-line method of amortization, with no residual value.

  • Q : The company make by processing....
    Accounting Basics :

    TB 120 Resendes Refiners, Inc., processes sugar cane that it purchases from farmers. Sugar cane is processed in batches. A batch of sugar cane costs $48 to buy from farmers and $16.

  • Q : Hat will be his effective tax rate on the additional income....
    Accounting Basics :

    An engineer has an income that puts him in the 25% federal income tax bracket and at the 10% state incremental tax rate. She has an opportunity to earn extra $500 by doing a small consulting job.

  • Q : Juice into refined sugar rather than selling....
    Accounting Basics :

    TB 53 Coakley Beet Processors, Inc., processes sugar beets in batches. A batch of sugar beets costs $48 to buy from farmers and $10 to crush in the company's plant.

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