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Showing posts with label For. Show all posts
Showing posts with label For. Show all posts

Wednesday, April 13, 2016

For each of the following costs, identify whether the item is:

For each of the following costs, identify whether the item is:

A variable or fixed cost?
Direct or indirect cost?
Controllable or uncontrollable cost?

For example: Plant Utilities would be a variable, indirect, and controllable cost.

Not all items will fit into each category. Items that do not fit a category should be labeled as not applicable.

Raw materials.
Staples used to secure packed boxes of the product.
Plant janitor’s wages.
Order processing clerk’s wages.
Advertising expenses.
Production worker’s wages.
Production supervisor’s salaries.
Sales force commissions.
Maintenance supplies used.
President’s salary.
Electricity cost for the office building.
Real estate taxes for the plant.
Production-run setup costs.
Depreciation of plant equipment.
Outbound shipping costs.

Use a table format to complete this assignment.

Click here for the solution: For each of the following costs, identify whether the item is:

Tuesday, November 10, 2015

The standard cost card contains quantities and costs for

MULTIPLE CHOICE

1. The standard cost card contains quantities and costs for _______. (Points : 1)

2. A total variance is best defined as the difference between total _______. (Points : 1)

3. The term standard hours allowed measures _______. (Points : 1)

4. Which of the following factors should not be considered when deciding whether to investigate a variance? (Points : 1)

5. A company wishing to isolate variances at the point closest to the point of responsibility will determine its material price variance when ______. (Points : 1)

6. The standard predominantly used in Western cultures for motivational purposes is a(n) ____ standard. (Points : 1)

7. Gallagher Corporation. incurred 2,300 direct labor hours to produce 600 units of product. Each unit should take 4 direct labor hours. Gallagher Corporation applies variable overhead to production on a direct labor hour basis. The variable overhead efficiency variance _______. (Points : 1)

8. A variable overhead spending variance is caused by ________. (Points : 1)

9. McCoy Company has the following information available for October when 3,500 units were produced (round answers to the nearest dollar).
Standards:
Material 3.5 pounds per unit @ $4.50 per pound
Labor 5.0 hours per unit @ $10.25 per hour

Actual:
Material purchased 12,300 pounds @ $4.25
Material used 11,750 pounds
17,300 direct labor hours @ $10.20 per hour

What is the labor rate variance? (Points : 1)

10. McCoy Company has the following information available for October when 3,500 units were produced (round answers to the nearest dollar).
Standards:
Material 3.5 pounds per unit @ $4.50 per pound
Labor 5.0 hours per unit @ $10.25 per hour

Actual:
Material purchased 12,300 pounds @ $4.25
Material used 11,750 pounds
17,300 direct labor hours @ $10.20 per hour

What is the labor efficiency variance? (Points : 1)

11. Joint costs are useful for _______. (Points : 1)

12. Each of the following is a method to allocate joint costs except _______. (Points : 1)

13. When allocating joint process cost based on tons of output, all products will _______. (Points : 1)

14. Scrap is defined as a _______. (Points : 1)

15. Waste created by a production process is _______. (Points : 1)

16. In a lumber mill, which of the following would most likely be considered a primary product? (Points : 1)

17. Fisher Company produces three products from a joint process. The products can be sold at split-off or processed further. In deciding whether to sell at split-off or process further, management should _______. (Points : 1)

18. The split-off point is the point at which _______. (Points : 1)

19. A product may be processed beyond the split-off point if management believes that _______. (Points : 1)

20. Which of the following is a commonly used joint cost allocation method? (Points : 1)

Click here for the solution: The standard cost card contains quantities and costs for

Wednesday, October 14, 2015

The units of an item available for sale during the year were as follows

Ex 6-8 The units of an item available for sale during the year were as follows:

Jan 1 Inventory 27 units at $120
Feb 17 Purchase 54 units at $138
July 21 Purchase 63 units at $156
Nov 23 Purchase 36 units at $165

There are 50 units of the item in the physical inventory at December 31. The periodic inventory system is used.

Determine the inventory cost by (a) the first-in, first-out method, (b) the last-in, first-out method, and (c) the average cost method.

Click here for the solution: The units of an item available for sale during the year were as follows

Tuesday, September 8, 2015

For each of these five separate cases, identify the principle of internal control that is violated

ACC 225 Week 8

Problems 8-1B

For each of these five separate cases, identify the principle of internal control that is violated. Recommend what the business should do to ensure adherence to principles of internal control.

1. Latoya Tally is the company’s computer specialist and oversees its computerized payroll system. Her boss recently asked her to put password protection on all office computers. Latoya has put a password in place that allows only the boss access to the file where pay rates are changed and personnel are added or deleted from the payroll.
2. Lake Theater has a computerized order-taking system for its tickets. The system is active all week and backed up every Friday night.
3. X2U Company has two employees handling acquisitions of inventory. One employee places purchase orders and pays vendors. The second employee receives the merchandise.
4. The owner of Super-Aid uses a check protector to perforate checks, making it difficult for anyone to alter the amount of the check. The check protector sits on the owner’s desk in an office
that contains company checks and is often unlocked.
5. LeAnn Company is a small business that has separated the duties of cash receipts and cash disbursements. The employee responsible for cash disbursements reconciles the bank account monthly.


Click here for the solution: For each of these five separate cases, identify the principle of internal control that is violated

Garber, Inc. accounts for all sales of its merchandise on the installment basis

Garber, Inc. accounts for all sales of its merchandise on the installment basis. Following is the unadjusted trial balance at 12/31/12:

Cash $ 90,200
Installment Accounts Receivable—2010 170,000
Installment Accounts Receivable—2011 400,000
Installment Accounts Receivable—2012 750,000
Inventory, 1/1/12 78,000
Repossessed Merchandise 22,000
Accounts Payable $ 136,000
Deferred Gross Profit—2010 84,000
Deferred Gross Profit—2011 195,000
Capital Stock 600,000
Retained Earnings 406,200
Installment Sales 1,000,000
Purchases 758,000
Loss on Repossession 3,000
Operating Expenses 150,000
$2,421,200 $2,421,200

Additional Data: 2010 Gross Profit Rate = 30%; Inventory 12/31/12 = $158,000;
Repossessed merchandise 12/31/12 = $15,000;
Merchandise sold in 2011 was repossessed in 2012 and the following entry was prepared (assume correctly):
Deferred Gross Profit—2011 15,000
Repossessed Merchandise 22,000
Loss on Repossession 3,000
Installment Accounts Receivable—2011 40,000

Instructions
(a) Determine collections during 2012 on Installment A/R for each of the years 2010, 2011, and 2012.

(b) Without prejudice to your answer in Part (a), assume that total collections on Installment Accounts Receivable during 2012 were $1,060,000; $220,000 from 2010, $300,000 from 2011, and $540,000 from 2012. Prepare all necessary adjusting and closing entries at 12/31/12.


Click here for the solution: Garber, Inc. accounts for all sales of its merchandise on the installment basis

Dillon, a U.S. citizen, resides in Country K for all of 2010

C:16-44 Foreign-Earned Income Exclusion. Dillon, a U.S. citizen, resides in Country K for all of 2010. Dillon is married, files a joint return and claims two personal exemptions. The following items pertain to his 2010 activities:

Salary and allowances (other than for housing) a $175,000
Housing allowance 28,000
Employment-related expenses b 7,500
Housing costs 30,000
Other itemized deductions 4,000
Country K income taxes 12,000

a) All of Dillon’s salary and allowances are attributable to services performed in Country K.
b) Dillon claims the employment-related expenses as itemized deductions.
What is Dillon’s net U.S. tax liability for 2010 (assume that Dillon excludes his earned income and housing cost amount)?


Click here for the solution: Dillon, a U.S. citizen, resides in Country K for all of 2010

Monday, August 31, 2015

For each situation listed below, indicate by letter the appropriate qualitative characteristic(s) or accounting concept(s) applied

For each situation listed below, indicate by letter the appropriate qualitative characteristic(s) or accounting concept(s) applied. A letter may be used more than once, and more than one characteristic or concept may apply to a particular situation. Explain why you chose your answer.

1. Goodwill is recorded in the accounts only when it arises from the purchase of another entity at a price higher than the fair market value of the purchased entity's identifiable assets.
2. Land is valued at cost.
3. All payments out of petty cash are debited to Miscellaneous Expense.
4. Plant assets are classified separately as land or buildings, with an accumulated depreciation account for buildings.
5. Periodic payments of $1,500 per month for services of H. Hay, who is the sole proprietor of the company, are reported as withdrawals.
6. Small tools used by a large manufacturing firm are^ recorded as expenses when purchased.
7. Investments in equity securities are initially recorded at cost.
8. A retail store estimates inventory rather than taking a complete physical count for purposes of preparing monthly financial statements.
9. A note describing the company's possible liability in a lawsuit is included with the financial statements even though no formal liability exists at the balance sheet date.
10. Depreciation on plant assets is consistently computed each year by the straight-line method.

a) Understandability
b) Verifiability
c) Timeliness
d) Representational faithfulness
e) Neutrality
f) Relevance
g) Going concern
h) Economic entity
i) Historical cost
j) Measurability
k) Materiality
l) Comparability


Click here for the solution: For each situation listed below, indicate by letter the appropriate qualitative characteristic(s) or accounting concept(s) applied

For each of the following problems, provide an audit procedure that would have identified the problem

Problem 10-28 For each of the following problems, provide an audit procedure that would have identified the problem.
(a) The allowance for doubtful accounts estimated by management is too small.
(b) Cash received in payment of an account receivable is deposited in the bank in the current period but is not posted to the accounts receivable record, trial balance, or general ledger until the subsequent period.
(c) For a month, sales are transacted using an outdated price list with amounts that are too low. The transactions are recorded accurately based on the price list used. Management is not aware the problem occurred.
(d) Cash for the exact amounts of sales are regularly pocketed by employees and not recorded on the sales terminal. Customers do not ask for receipts.
(e) Management records false sales close to year end and posts them as Accounts Receivable.
(f) Sales on account for services that take place in the first two days of the subsequent year are posted in the current year.


Click here for the solution: For each of the following problems, provide an audit procedure that would have identified the problem

Mike purchases a heavy-duty truck (5-year class recovery property) for his delivery service on April 30, 2010

Mike purchases a heavy-duty truck (5-year class recovery property) for his delivery service on April 30, 2010. The truck is not considered a passenger automobile for purposes of the listed property and luxury automobile limitations. The truck has a depreciable basis of $39,080 and an estimated useful life of 5 years. Its estimated salvage value is $1,080. Assume no election to expense is made and no bonus depreciation is taken.

a. Calculate the amount of depreciation for 2010 using financial accounting straight-line depreciation (not the straight-line MACRS election) over the truck's estimated useful life.
b. Calculate the amount of depreciation for 2010 using the straight-line depreciation election under MACRS over the minimum number of years.
c. Calculate the amount of accelerated depreciation for 2010 that Mike could deduct using MACRS.


Click here for the solution: Mike purchases a heavy-duty truck (5-year class recovery property) for his delivery service on April 30, 2010

Saturday, August 1, 2015

For each of the following subsequent (post-balance-sheet) events, indicate whether a company should

E24-2 (Post-Balance-Sheet Events) For each of the following subsequent (post-balance-sheet) events, indicate whether a company should (a) adjust the financial statements, (b) disclose in notes to the financial statements, or (c) neither adjust nor disclose.

______ 1. Settlement of federal tax case at a cost considerably in excess of the amount expected at year-end.
______ 2. Introduction of a new product line.
______ 3. Loss of assembly plant due to fire.
______ 4. Sale of a significant portion of the company’s assets.
______ 5. Retirement of the company president.
______ 6. Issuance of a significant number of shares of common stock.
______ 7. Loss of a significant customer.
______ 8. Prolonged employee strike.
______ 9. Material loss on a year-end receivable because of a customer’s bankruptcy.
______ 10. Hiring of a new president.
______ 11. Settlement of prior year’s litigation against the company.
______ 12. Merger with another company of comparable size.

Click here for the solution: For each of the following subsequent (post-balance-sheet) events, indicate whether a company should