Question 1:
Product costs:
Question 2:
Use the following information and the indirect method to calculate the net cash provided or used by operating
activities:
Question 3:
Actual fixed overhead for Kapok Company during March was $92,780. The flexible budget for fixed overhead this
period is $89,000 based on a production level of 5,000 units. If the company actually produced 4,200 units what is the fixed
overhead volume variance for March?
Question 4:
A company's income statement showed the following: net income, $124,000; depreciation expense, $30,000; and
gain on sale of plant assets, $14,000. An examination of the company's current assets and current liabilities showed the
following changes as a result of operating activities: accounts receivable decreased $9,400; merchandise inventory increased
$18,000; prepaid expenses decreased $6,200; accounts payable increased $3,400. Calculate the net cash provided or used by
operating activities.
Question 5:
Chance, Inc. sold 3,000 units of its product at a price of $72 per unit. Total variable cost per unit is $51, consisting
of $32 in variable production cost and $19 in variable selling and administrative cost. Compute the manufacturing margin for
the company under variable costing.
Question 6:
A company has fixed costs of $90,000. Its contribution margin ratio is 30% and the product sells for $75 per unit.
What is the company's break-even point in dollar sales?
Question 7:
A corporation issued 300 shares of its $5 par value common stock in payment of a $1,800 charge from its
accountant for assistance in filing its charter with the state. The entry to record this transaction will include:
Question 8:
The three major cost components of a manufactured product are:
Question 9:
The amount by which the overhead applied to jobs during a period exceeds the overhead incurred during the
period is known as:
Question 10:
Which of the following journal entries correctly records the current month's activity where $125,000 of raw material
was purchased for cash, and $75,000 of direct material and $30,000 of indirect materials were used in the production process?
Question 11:
Advanced Company reports the following information for the current year. All beginning inventory amounts
equaled $0 this year.
Question 12:
When using the indirect method to calculate and report net cash provided or used by operating activities, which of
the following is subtracted from net income?
Question 13:
Six months ago, a company purchased an investment in stock for $65,000. This investment is considered
available-for-sale. The current market value of the stock is $68,500. The company should record a:
Question 14:
A company manufactures and sells a product for $120 per unit. The company's fixed costs are $68,760, and its
variable costs are $90 per unit. The company's break-even point in units is:
Question 15:
Bradford Company budgeted 4,000 pounds of material costing $5.00 per pound to produce 2,000 units. The
company actually used 4,500 pounds that cost $5.10 per pound to produce 2,000 units.
Question 16:
Montaigne Corp. has the following information about its standards and production activity in November:
Question 17:
A manufacturing company has a beginning finished goods inventory of $14,600, raw material purchases of
$18,000, cost of goods manufactured of $32,500, and an ending finished goods inventory of $17,800. The cost of goods sold
for this company is:
Question 18:
Preferred stock is often issued:
Question 19:
A company reports the following information for the current year which is its first year of operations.
Question 20:
A corporation issued 5,000 shares of $10 par value common stock in exchange for some land with a market
value of $60,000. The entry to record this exchange is:
Question 21:
The following data are available for a company's manufacturing activities:
Question 22:
Employee morale, timeliness of delivery, and the reactions of customers are examples of nonfinancial factors
which should be considered when making a managerial decision.
Question 23:
Accounting standards:
Question 24:
A company declared a $0.50 per share cash dividend. The company has 20,000 shares authorized, 9,000 shares
issued, and 8,000 shares of common stock outstanding.
Question 25:
A decrease in the fair market value of a security that has not yet been realized through an actual sale of the security is called
a(n):
Question 26:
Estimated overhead and direct labor costs for the year were $112,500 and $125,000, respectively. During the
year, actual overhead was $107,400 and actual direct labor cost was $120,000. The entry to close the over- or underapplied
overhead at year-end, assuming an immaterial amount, would include:
Question 27:
At acquisition, debt securities are:
Question 28:
Vision Tester, Inc., a manufacturer of optical glass, began operations on February 1 of the current year. During
this time, the company produced 900,000 units and sold 800,000 units at a sales price of $12 per unit. Cost information for
this year is shown below.
Question 29:
Long-term investments can include: