• Q : Explain the standard cost....
    Accounting Basics :

    If 10,000 pounds of direct materials are purchased for $9,300 on account and the standard cost is $.90 per pound, the journal entry to record the purchase is.

  • Q : How much may moe and mindy claim on their tax return....
    Accounting Basics :

    How much may Moe and Mindy claim on their tax return as a self-employed health insurance deduction?Moe has a law practice and earns $322,000 which he reports on his Schedule C. His wife, Mindy, works

  • Q : What is the amount of law services revenue....
    Accounting Basics :

    The following activities occurred during the current year, 2013, for the Maverick Law Firm. On February 1, 2013, received cash of $5,600 from clients in payment of their accounts from 2012.

  • Q : Calculate the variable cost per calculator....
    Accounting Basics :

    Precision Numbers, Inc., manufactures pocket calculators. Costs incurred in making 25,000 calculators in April included $85,000 of fixed manufacturing overhead. The total absorption cost per calcula

  • Q : What is the adjusted cash balance at the end of the month....
    Accounting Basics :

    Flynn Company's monthly bank statement showed the ending balance of cash of $22,750. The bank reconciliation for the period showed an adjustment for a deposit in transit of $2,300, outstanding check

  • Q : How is the rental income treated on their tax return....
    Accounting Basics :

    Walt and Jackie rent out their residence in San Diego to friends for 10 days while they vacation in Europe. They collect $1,000 of rental income. How is the rental income treated on their tax return

  • Q : Explain the special promotion for the last two weeks....
    Accounting Basics :

    The management of Rocko's Pizzeria is considering a special promotion for the last two weeks of October, which is normally a relatively low-demand period.

  • Q : Discuss the little rock division of classics companies....
    Accounting Basics :

    The Little Rock Division of Classics Companies currently reports a profit of $3.7 million. Divisional invested capital totals $9.6 million; the imputed interest rate is 13%.

  • Q : Adding a new product to the company....
    Accounting Basics :

    Meyers Corp. has annual revenues of $450,000, an average contribution margin ratio of 35%, and fixed expenses of $175,000.

  • Q : Calculate the yearly depreciation tax shield....
    Accounting Basics :

    Assume that Jameson uses straight line depreciation, depreciates assets down to zero for tax purposes, and has a tax rate of 30%. Calculate the yearly depreciation tax shield.

  • Q : How to the negative amount should be indicated....
    Accounting Basics :

    Calculate the missing amounts for each of the following firms: (Negative amount should be indicated by a minus sign. Do not round your intermediate calculations. Round your answers to 2 decimal plac

  • Q : Determine the amount of the dividend paid....
    Accounting Basics :

    XYZ Company began operations in January, 2004, by issuing 3,500 shares of 8%, cumulative, $50 par value preferred stock and 8,000 shares of $7 par value common stock.

  • Q : Explain the net realizable value of accounts receivale....
    Accounting Basics :

    At the end of the current year, Accounts Receivable has a balance of $750,000; Allowance for Doubtful Accounts has a debit balance of $6,200; and net sales for the year total $3,500,000.

  • Q : Explain the standard materials price per pound....
    Accounting Basics :

    Oklahoma Manufacturing Company uses a standard cost accounting system. In 2012, the company produced 28,200 units. Each unit took several pounds of direct materials and 1½ standard hours of d

  • Q : The new truck is expected to generate cost....
    Accounting Basics :

    Dobbs Corporation is considering purchasing a new delivery truck. The truck has many advantages over the company's current truck (not the least of which is that it runs).

  • Q : Explain the short-term debt should be presented....
    Accounting Basics :

    On December 31, 2012, Alexander Company had $1,296,800 of short-term debt in the form of notes payable due February 2, 2013.

  • Q : Determine the basis of machine hours....
    Accounting Basics :

    Darling Company, which applies overhead to production on the basis of machine hours, reported the following data for the period just ended:

  • Q : Cost of the units started and completed during the period....
    Accounting Basics :

    The charges to Work in Process - Assembly Department for a period, together with information concerning production, are as follows. All direct materials are placed in process at the beginning of pro

  • Q : Explain the pressing department....
    Accounting Basics :

    Pacific Products Inc. completed and transferred 55,000 particle board units of production from the Pressing Department. There was no beginning inventory in process in the department.

  • Q : What is dels flexible budget for the preceding....
    Accounting Basics :

    Del's Diner anticipated that 84,000 process hours would be worked during an upcoming accounting period when, in fact, 90,000 hours were actually worked. One of the company's cost functions is expres

  • Q : How does each affect cost of goods sold....
    Accounting Basics :

    What elements might organizational leaders consider when selecting which inventory valuation method to adopt?What are the acceptable inventory valuation methods under the U.S. Generally Accepted Accou

  • Q : Describe a schedule of expected cash collections....
    Accounting Basics :

    Finished goods inventory on hand at the end of each month must be equal to 1,000 units + 30% of next month's sales. Ending finished goods inventory for March was 10,000 units.

  • Q : Which results in the highest inventory balance....
    Accounting Basics :

    inventory costs are rising, which method (FIFO, LIFO, or weighted average cost) results in the highest net income? Which results in the highest inventory balance? Does your answer change depending

  • Q : How is inventory turnover calculated....
    Accounting Basics :

    Assuming that a company has $365 million in annual sales, and a gross margin of 20%, how much investment will each additional day of sales in accounts receivable require?

  • Q : Calculate the direct-material price and quantity variance....
    Accounting Basics :

    Calculate the direct-material price and quantity variances, and the direct-labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable.

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