• Q : Goldenlock company manufactures watches....
    Accounting Basics :

    Goldenlock Company manufactures watches and has a JIT policy that ending inventory must equal 20% of the next month's sales. It estimates that October's actual ending inventory.

  • Q : Determine the amount of accounts receivable....
    Accounting Basics :

    Treehouse Company anticipates total sales for June and July of $420,000 and $398,000, respectively. Cash sales are normally 60% of total sales. Of the credit sales, 10% are collected in the same mon

  • Q : What cost for wood should have been incurred....
    Accounting Basics :

    Harmon Household Products, Inc., manufactures a number of consumer items for general household use. One of these products, a chopping board.

  • Q : Explain the ideas for a new income tax plan....
    Accounting Basics :

    Read through this article and then let's take a poll of our own. Do you feel the amount you pay in income taxes are fair? What do you think you should pay? Do you have any ideas for a new incom

  • Q : What is the move time recorded for the operation....
    Accounting Basics :

    Hart Manufacturing operates an automated steel fabrication process. For one operation, Hart has found that 45% of the total throughput time is spent on non-value-added activities.

  • Q : What is the breakeven sales volume and dollars....
    Accounting Basics :

    The Nut House sells almonds, cashews, and pistachios. They sold 10,000 cans last year. Pistachios outsold cashews by a margin of 2 to 1 in cans. Sales of almonds were half the sales of cashews in ca

  • Q : Liquidity premium versus a zero liquidity....
    Accounting Basics :

    If 10-year T-bonds have a yield of 6.2%, 10-year corporate bonds yield 8.5%, the maturity risk premium on all 10-year bonds is 1.3%, and corporate bonds have a 0.4%.

  • Q : What amount should be recorded on records....
    Accounting Basics :

    Eastern Real Estate Purchased a building for $600,000 in 2001. At the end of 2013, when it had a book value of $450,000, it was appraised for 1,000,000. A potential buyer offered $900,000.

  • Q : Why extend credit to customers....
    Accounting Basics :

    Why does it make sense that you, as a manager, would allow people to come pick up the products you sell and walk out without paying for them?

  • Q : How many units should be ordered each time....
    Accounting Basics :

    Madeline Thimme's Dream Store sells water beds and assorted supplies. Her best-selling bed has an annual demand of 400 units. Ordering cost is $40; holding cost is $5 per unit per year.

  • Q : Prepare the journal entry to record the purchase....
    Accounting Basics :

    On May 18th the company purchased the property next door as part of a plant expansion strategy. The purchase price consisted of 100,000 shares of Spencer Company $1 par value common stock which is c

  • Q : Units-of-production depreciation....
    Accounting Basics :

    Calculate the amount of depreciation to report during the year ended December 31, 2013, for equipment that was purchased at a cost of $55,000 on October 1, 2013.

  • Q : Compute the production cost per unit under each plan....
    Accounting Basics :

    Marsh Industries had sales in 2013 of $6,400,000 and gross profit of $1,100,000. Management is considering two alternative budget plans to increase its gross profit in 2014.

  • Q : How to operating cash flows negative....
    Accounting Basics :

    Prepare a memo explaining how net income could be positive and operating cash flows negative. Include in the memo a determininatoion of operating cash flows of negative five minllion using the indi

  • Q : President to be directly compensated....
    Accounting Basics :

    How would you allocate additonal 5 million? are there other areas in which to spend the money not mentioned in the above case?is it ethical for the president to be directly compensated based on the

  • Q : What would be the balance in the land account....
    Accounting Basics :

    On July 1, 2013, Larkin Co. purchased a $430,000 tract of land that is intended to be the site of a new office complex. Larkin incurred additional costs and realized salvage proceeds during 2013 as

  • Q : The past quarter that may have influenced these ratios....
    Accounting Basics :

    After finishing her first year of operations, Nicole used the debt-to-assets, asset turnover, and net profit margin ratios to determine how effective she was in running the business.

  • Q : What is the maximum they can pay an outside....
    Accounting Basics :

    Warren Ltd. has two production departments, Building A and Building B, and two service departments, Maintenance and Cafeteria. Direct costs for each department and the proportion of service costs us

  • Q : What are consolidated sales and cost of goods....
    Accounting Basics :

    In comparing U.S. GAAP and international financial reporting standards (IFRS) with regard to a basis for measurement of a non-controlling interest, which of the following is true?

  • Q : How to beginning and ending inventories remain....
    Accounting Basics :

    Precision Systems manufactures CD burners and currently sells 18,500 units annually to producers of laptop computers. Jay Wilson, president of the company, anticipates a 15 percent increase in the c

  • Q : What level of revenue is needed to earn....
    Accounting Basics :

    What level of revenue is needed to earn a target income of $540,000?If variable costs drop to $36 per patient day, what increase in fixed costs can be tolerated without changing the break-even point

  • Q : Compute the cost of the merchandise the owner....
    Accounting Basics :

    At the beginning of 2012, Wilson Stores has an inventory of $300,000. Because sales growth was strong during 2012, the owner wants to increase inventory on hand to $450,000 at December 31, 2012.

  • Q : How to the accounting system is modified....
    Accounting Basics :

    Adria Lopez created Success Systems on October 1, 2013. The company has been successful, and its list of customers has grown. To accommodate the growth.

  • Q : Uses a predetermined variable overhead....
    Accounting Basics :

    In the most recent month, 120,000 items were shipped to customers using 4,700 direct labor hours. The company incurred a total of $16,215 in variable overhead costs.

  • Q : How many units were started and completed during the period....
    Accounting Basics :

    The Finishing Department had 7,500 incomplete units in its beginning Work-in-Process Inventory which were 100% complete as to materials and 30%.

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