• Q : What is meant by the term transferred-out cost....
    Accounting Basics :

    What is meant by the term transferred-out cost? Why does the transferred-out cost under the WA method include only one computation but the FIFO method includes multiple computations?

  • Q : Describe the charge to logan company by the bank....
    Accounting Basics :

    Cash sales of $838.25 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $888.25. The bank credited Logan Company for the correct am

  • Q : Why the real estate market was depressed....
    Accounting Basics :

    Harry was experiencing financial difficulties and could not make the mortgage payments on his home. The mortgage holder agreed to reduce the debt principal by $50,000 because the real estate market

  • Q : What is the applied overhead based on direct-labor costs....
    Accounting Basics :

    Schrader, Inc uses a budgeted factory-overhead rate to apply overhead to production. The following data are available for the year ended December 31, 2010.

  • Q : Explain the tests of controls that need to be performed....
    Accounting Basics :

    Your client controls the existence and occurrence of sales by having the computer program match the information supporting sales invoices with underlying shipping documents before a sales invoice is

  • Q : Garcia manufacturing began production....
    Accounting Basics :

    Incurred manufacturing overhead costs as follows: indirect materials $17,000; indirect labor $15,000; depreciation expense $19,000, and various other manufacturing overhead costs on account $20,000.

  • Q : What amount should larsen report....
    Accounting Basics :

    Larsen Corporation reported $100,000 in revenues in its 2010 financial statements, of which $44,000 will not be included in the tax return until 2011.

  • Q : Explain a statement of comprehensive income....
    Accounting Basics :

    Armstrong Corporation reported the following for 2012: net sales $1,200,000; cost of goods sold for $720,000; selling and administrative expenses $320,000; and an unrealized holding gain on availabl

  • Q : Company uses the straight line depreciation method....
    Accounting Basics :

    On January 1, 2002, ABC Company purchased equipment for $100,000. The equipment was assigned an estimated life of 10 years and a residual value of $10,000.

  • Q : Explain the offer to buy the carburetors for the unit....
    Accounting Basics :

    What will be the total relevant cost of 15,400 units, if they are manufactured internally? (Omit the "$" sign in your response.

  • Q : E-tech initiatives limited plans....
    Accounting Basics :

    E-Tech Initiatives Limited plans to issue $500,000, 10-year, 4 percent bonds. Interest is payable annually on December 31. All of the bonds will be issued on January 1,2010.

  • Q : Separately evaluate the immediate effect....
    Accounting Basics :

    The Lux Company experiences the following unrelated events and transactions during Year 1. The company's existing current ratio is 2:1 and its quick ratio is 1.2:1.

  • Q : Present comparative income statements....
    Accounting Basics :

    Botticelli Inc. was organized in late 2008 to manufacture and sell hosiery. At the end of its fourth year of operation, the company has been fairly successful, as indicated by the following reported

  • Q : Discuss the absorption costing net operating income....
    Accounting Basics :

    Sproles Inc. manufactures a variety of products. Variable costing net operating income was $90,500 last year and its inventory decreased by 3,500 units. Fixed manufacturing overhead cost was $6 per

  • Q : Prepare a bank reconciliation as of november....
    Accounting Basics :

    The Malamura Company deposits all receipts in the bank and makes all payments by check. On November 30 its Cash account has a balance of $2,289.

  • Q : What is the relevant cost of the kilograms....
    Accounting Basics :

    Lampshire Inc. is considering using stocks of an old raw material in a special project. The special project would require all 160 kilograms of the raw material that are in stock and that originally

  • Q : How much to bid on the special order....
    Accounting Basics :

    Scherer Corporation is preparing a bid for a special order that would require 720 liters of material U48N. The company already has 560 liters of this raw material in stock that originally cost $6.30

  • Q : What are its common fixed expenses....
    Accounting Basics :

    The CTL Company has two divisions: Electronics and DVD/Video Sales. Electronics has traceable fixed expenses of $146,280 and the DVD/Video Sales has traceable fixed expenses of $81,765.

  • Q : Uses a perpetual inventory system....
    Accounting Basics :

    On December 3 Mack Company sold $500,000 of merchandise to Pickert Co., terms 1/10, n/30. The cost of the merchandise sold was $320,000.

  • Q : An allocation of service department....
    Accounting Basics :

    Surf Beach State College (SBSC) has a business school with three products, undergraduate degrees, graduate degrees, and executive education. SBSC has three service departments, Computer Support, Car

  • Q : Why the company manufacturing overhead account....
    Accounting Basics :

    Prior to the closing of the overapplied or underapplied balance to Cost of Goods Sold, the total of the debits to the Manufacturing Overhead account was $75,000 and the total of the credits to the a

  • Q : What amounts should be considered product and period costs....
    Accounting Basics :

    A manufacturing company prepays its insurance coverage for a three-year period. The premium for the three years is $2,700 and is paid at the beginning of the first year.

  • Q : What are the capital balances of the four partners....
    Accounting Basics :

    Assume instead that the existing partners, all of whom contemplate retirement relatively soon, decide to sell Jeter 30 percent of their respective partnership interests for a total payment of $270,0

  • Q : Why the formation using the bonus approach....
    Accounting Basics :

    Max, Nat and Roberta formed a partnership to operate a dry-cleaning business. They agreed to share initial capital and subsequent income in a 3:2:1 ratio.

  • Q : Explain the greivell manufacturing company....
    Accounting Basics :

    Greivell Manufacturing Company has two production departments: Cutting and Assembly. July 1 inventories are Raw Materials $3,800, Work in Process-Cutting $2,780.

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