• Q : What sales revenue is needed....
    Accounting Basics :

    Marissa, Inc, has a contribution margin of 40% and fixed costs of $220,000. What sales revenue is needed to attain a $60,000 profit?

  • Q : Explain the weighted average method....
    Accounting Basics :

    Ash Corp uses a process costing system. Beginning inventory for January consisted of 2,000 units that were 40% completed. 10,000 units were completed by the process during January.

  • Q : What is the variable cost per unit....
    Accounting Basics :

    Pierre Corp has sales of $200,000, a contribution margin ratio of 35%, and a profit of $40,000. If 10,000 units were sold, what is the variable cost per unit?

  • Q : Entry to record the acquisition....
    Accounting Basics :

    A company purchases 1,000 shares of ABC Corporation for $123,000 and management considers this investment to be securities available for sale. The entry to record the acquisition of the securities

  • Q : Compute the accounting rate of return....
    Accounting Basics :

    A new manufacturing machine is expected to cost $286,000, have an eight-year life, and a $30,000 salvage value. The machine will yield an annual incremental after-tax income of $35,000 after deduct

  • Q : The net incremental cost or savings of buying....
    Accounting Basics :

    Axle Company can produce a product that incurs the following costs per unit: direct materials, $10; direct labor, $24, and overhead, $16. An outside supplier has offered to sell the product to Axle

  • Q : How to straight-line depreciation is used....
    Accounting Basics :

    A machine costs $180,000 and is expected to yield an after-tax net income of $10,800 each year. Management estimates the machine will have a ten-year life, a $20,000 salvage value, and straight-lin

  • Q : Desires to market a faucet similar....
    Accounting Basics :

    Cornell Corporation manufactures facuets. Several weeks ago, the firm recieved a speical-order inquiry from Yale, Inc. Yale desires to market a faucet similar to Cornell's model no 55 and has offere

  • Q : Compute net present value of project....
    Accounting Basics :

    Whatley Inc. is considering investing in a project that would require an initial investment of $460,000. The life of the project would be 5 years. The annual net cash inflows from the project would

  • Q : Determine how much will be incorporated....
    Accounting Basics :

    Miller company acquired land and a building on july 1 2014, paying a total of 1,400,000. seperately the land had estimated fair market value of 750,000 and the building had an estimated afiar market

  • Q : Effectiveness is what type of audit....
    Accounting Basics :

    An examination of part of an organization's procedures and methods for the purpose of evaluating efficiency and effectiveness is what type of audit?

  • Q : What are the tax consequences to macleod....
    Accounting Basics :

    Nash is one of three equal unrelated shareholders of MacLeod Corporation. Nash has held MacLeod stock for four years and has a basis in his stock of $50,000. MacLeod has $300,000 of current and accu

  • Q : How to depreciation allowed for e&p purposes....
    Accounting Basics :

    Griffin Corporation reports $400,000 of taxable income for the current year. The following additional information is available.

  • Q : Compute the margin of safety....
    Accounting Basics :

    In the month of June, Bonita's Beauty Salon gave 3,460 haircuts, shampoos, and permanents at an average price of $50. During the month, fixed costs were $17,900 and variable costs were 60% of sales.

  • Q : Explain variable per direct labor hour....
    Accounting Basics :

    In October, McEnroe Company reports 21,490 actual direct labor hours, and it incurs $59,550 of manufacturing overhead costs. Standard hours allowed for the work done is 19,850 hours.

  • Q : The subsidiary excess acquisition....
    Accounting Basics :

    On January 1, 2011, Aspen Company acquired 80 percent of Birch Company's outstanding voting stock for $482,000. Birch reported a $542,500 book value and the fair value of the noncontrolling in

  • Q : Bakery realizes a contribution margin....
    Accounting Basics :

    Doughboy Bakery would like to buy a new machine for putting icing and other toppings on pastries. These are now put on by hand. The machine that the bakery is considering costs $97,000 new.

  • Q : How to the company proceed with the project....
    Accounting Basics :

    A project will require an initial investment of $400,000 and will return $100,000 each year for six years. If taxes are ignored and the required rate of return is 9%, what is the project's net pres

  • Q : What is griffin current e&p for this year....
    Accounting Basics :

    Griffin Corporation reports $400,000 of taxable income for the current year. The following additional information is available:

  • Q : Compare the tax consequences to the shareholder....
    Accounting Basics :

    Compare the tax consequences to the shareholder and the distributing corporation of the following three kinds of corporate distributions: ordinary dividends, stock redemptions, and complete liquida

  • Q : What is the average cost of capital of special industries....
    Accounting Basics :

    Unique Industries is considering investing $40 million in plant expansion. Management needs to know the average cost of capital to use in evaluating this capital investment decision.

  • Q : How to relate to liabilities of marco corporation....
    Accounting Basics :

    The selected transactions relate to liabilities of Marco Corporation. On January 15, Marco received $7,000 from Dove Construction toward the purchase of $66,000 of plate glass to be delivered on Feb

  • Q : What is the par value per share for the common stock....
    Accounting Basics :

    Financial information for year ended january 31, 2009 is presented in the text of the chapter. Financial information for american eagle for the year ended january 31, 2010 is presented in appendix

  • Q : What is the standard rate of pay....
    Accounting Basics :

    The per-unit standards for direct labor are 2 direct labor hours at $12 per hour. If in producing 1,200 units, the actual direct labor cost was $25,600 for 2,000 direct labor hours worked, the total

  • Q : What is the labor quantity variance....
    Accounting Basics :

    Monster Company produces a product requiring 3 direct labor hours at $20.00 per hour. During January, 2,000 products are produced using 6,300 direct labor hours. Monster's actual payroll during Jan

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