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Question : 91. A business operated at 100% of capacity during its first : 1251630

Accounting

 

 

91. A business operated at 100% of capacity during its first month and incurred the following costs: 

Production costs (20,000 units):  

  Direct materials$180,000 

  Direct labor240,000 

  Variable factory overhead280,000 

  Fixed factory overhead  100,000$800,000

   

Operating expenses:  

  Variable operating expenses$130,000 

  Fixed operating expenses    50,000180,000

If 1,500 units remain unsold at the end of the month, what is the amount of inventory that would be reported on the variable costing balance sheet? A. $62,500B. $73,500C. $60,000D. $52,500

 

92. A business operated at 100% of capacity during its first month and incurred the following costs: 

Production costs (10,000 units):  

  Direct materials$  80,000 

  Direct labor120,000 

  Variable factory overhead140,000 

  Fixed factory overhead    40,000$380,000

Operating expenses:  

  Variable operating expenses$  65,000 

  Fixed operating expenses    25,00090,000

If 600 units remain unsold at the end of the month, what is the amount of inventory that would be reported on the absorption costing balance sheet? A. $24,300B. $28,200C. $22,800D. $34,000

 

93. A business operated at 100% of capacity during its first month and incurred the following costs: 

Production costs (2,500 units):  

  Direct materials$42,500 

  Direct labor85,000 

  Variable factory overhead47,500 

  Fixed factory overhead  12,500$187,500

   

Operating expenses:  

  Variable operating expenses$15,000 

  Fixed operating expenses    4,50019,500

If 75 units remain unsold at the end of the month, what is the amount of inventory that would be reported on the absorption costing balance sheet? A. $5,625B. $5,250C. $5,760D. $6,210

 

94. A business operated at 100% of capacity during its first month and incurred the following costs: 

Production costs (10,000 units):  

  Direct materials$170,000 

  Direct labor360,000 

  Variable factory overhead190,000 

  Fixed factory overhead    50,000$770,000

   

Operating expenses:  

  Variable operating expenses$ 60,000 

  Fixed operating expenses    18,00078,000

If 500 units remain unsold at the end of the month, what is the amount of inventory that would be reported on the variable costing balance sheet? A. $41,500B. $36,000C. $42,800D. $38,500

 

95. A business operated at 100% of capacity during its first month and incurred the following costs: 

Production costs (10,000 units):  

  Direct materials$140,000 

  Direct labor40,000 

  Variable factory overhead20,000 

  Fixed factory overhead     4,000$204,000

   

Operating expenses:  

  Variable operating expenses$ 34,000 

  Fixed operating expenses     2,00036,000

If 2,000 units remain unsold at the end of the month and sales total $300,000 for the month, what would be the amount of income from operations reported on the variable costing income statement? A. $100,800B. $100,000C. $114,800D. $140,000

 

96. A business operated at 100% of capacity during its first month and incurred the following costs: 

Production costs (5,000 units):  

  Direct materials$70,000 

  Direct labor20,000 

  Variable factory overhead10,000 

  Fixed factory overhead    2,000$102,000

   

Operating expenses:  

  Variable operating expenses$17,000 

  Fixed operating expenses    1,00018,000

If 1,000 units remain unsold at the end of the month and sales total $150,000 for the month, what would be the amount of income from operations reported on the absorption costing income statement? A. $50,400B. $70,000C. $52,000D. $68,400

 

97. A business operated at 100% of capacity during its first month and incurred the following costs: 

Production costs (10,000 units):  

  Direct materials$140,000 

  Direct labor40,000 

  Variable factory overhead20,000 

  Fixed factory overhead     4,000$204,000

   

Operating expenses:  

  Variable operating expenses$ 34,000 

  Fixed operating expenses     2,00036,000

If 2,000 units remain unsold at the end of the month and sales total $300,000 for the month, what is the amount of the manufacturing margin that would be reported on the variable costing income statement? A. $104,000B. $106,000C. $140,000D. $114,800

 

98. A business operated at 100% of capacity during its first month and incurred the following costs: 

Production costs (5,000 units):  

  Direct materials$70,000 

  Direct labor20,000 

  Variable factory overhead10,000 

  Fixed factory overhead   2,000$102,000

   

Operating expenses:  

  Variable operating expenses$17,000 

  Fixed operating expenses    1,00018,000

If 1,000 units remain unsold at the end of the month and sales total $150,000 for the month, what is the amount of the manufacturing margin that would be reported on the absorption costing income statement? A. $50,000B. $54,000C. not reportedD. $70,000

 

99. A business operated at 100% of capacity during its first month and incurred the following costs: 

Production costs (5,000 units):  

  Direct materials$70,000 

  Direct labor20,000 

  Variable factory overhead10,000 

  Fixed factory overhead    2,000$102,000

   

Operating expenses:  

  Variable operating expenses$17,000 

  Fixed operating expenses    1,00018,000

If 1,000 units remain unsold at the end of the month and sales total $150,000 for the month, what is the amount of the contribution margin that would be reported on the variable costing income statement? A. $51,400B. $52,000C. $54,000D. $53,000

 

100. A business operated at 100% of capacity during its first month, with the following results: 

Sales (160 units) $160,000

Production costs (200 units):  

  Direct materials$100,000 

  Direct labor20,000 

  Variable factory overhead10,000 

  Fixed factory overhead     4,000134,000

   

Operating expenses:  

  Variable operating expenses$ 12,000 

  Fixed operating expenses     2,00014,000

What is the amount of the manufacturing margin that would be reported on the variable costing income statement? A. $30,000B. $38,000C. $56,000D. $44,000

 

 

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July 1, 2023
    

 

51. Mark the correct answer. In calculating depreciation:

a. Straight-line depreciation is higher than double declining balance depreciation in the early years.

b. Straight-line depreciation is higher than double declining balance depreciation in the later years.

c. Double declining balance is a method of straight-line depreciation.

d. MACRS depreciation requires that salvage value be taken into account.

52. Mark the correct statement.

a. Residential real property is depreciated over 39 years.

b. Nonresidential real property is depreciated over 27.5 years.

c. Nonresidential real property is depreciated over 39 years.

d. Depreciation on real property starts at the beginning of the year in which the property is placed in service.

53. During 2014, Travis purchases $13,000 of used manufacturing equipment (7-year property) for use in his business, his only asset purchase that year. Travis has taxable income from his business of $500,000. What is the maximum amount that Travis may deduct under the election to expense?

a. $0

b. $13,000

c. $25,000

d. $500,000

e. None of the above

54. Aaron has a successful business with $50,000 of income in 2014. He purchased a new 7-year MACRS property with a cost of $7,000. For tax purposes, what is the largest write-off Aaron can obtain in 2014 for the new asset?

a. $500

b. $1,000

c. $3,500

d. $7,000

55. Taxpayers choosing the election to expense:

a. May depreciate the amount of the asset cost that exceeds the amount allowed under the election to expense.

b. Will have the maximum that can be expensed under the election reduced by $0.50 for each dollar by which the cost of the asset acquired exceeds a specified limit.

c. May not carry over any amounts elected which are not allowed because of taxable income limitations.

d. May expense a $125,000 automobile so long as it is used 100 percent for business.

56. On January 1, 2014, Sandy, a sole proprietor, purchased for use in her business a used production machine (7-year property) at a cost of $4,000. Sandy does not purchase any other property during 2014 and has net income from her business of $80,000. If the standard recovery period table would allow $572 of depreciation expense on the $4,000 of equipment purchased in 2014, what is Sandy's maximum depreciation deduction including the Section 179 election to expense (but not bonus depreciation) for 2014?

a. $572

b. $4,000

c. $4,572

d. $25,000

e. None of the above

57. What is the maximum depreciation expense deduction for Year 2 (2015) for a passenger automobile, used 100 percent for qualified business use, placed in service on June 15, 2014 and costing $14,000 (the election to expense is not made and no bonus depreciation was taken)?

a. $2,800

b. $3,160

c. $4,480

d. $5,100

e. None of the above

58. Jasper is a self-employed businessman. On March 5, 2014 he purchases a personal computer for use at his home. He uses the computer for personal purposes 50 percent of the time and for business use the remainder of the time. The computer cost $2,300. Jasper wants to claim the maximum amount of depreciation possible for 2014, including the election to expense, if it is available. What is the amount of depreciation that Jasper should claim on the computer for 2014?

a. $2,300

b. $1,150

c. $460

d. $230

e. Some amount less than the above amounts

59. On June 1, 2014, Sandalwood Corporation purchases a passenger automobile for 100 percent use in its business. The automobile is in the 5 year cost recovery class and has a basis for depreciation of $30,000. Assuming that the corporation elects the accelerated method of cost recovery for the asset and does not elect to expense any of its cost or take bonus depreciation, what is the total tax depreciation deduction for the 2014 calendar tax year (Year 1)?

a. $3,060

b. $3,160

c. $4,287

d. $6,000

e. None of the above

60. Which one of the following may not be depreciated using an accelerated method?

a. A farming tractor

b. A computer used strictly for the farming business

c. A corn-husking machine

d. A farm truck that is operated for personal use more than 50 percent of the time

e. All of the above items may be depreciated using an accelerated method

 

 

default image
July 1, 2023
    

 

51. Mark the correct answer. In calculating depreciation:

a. Straight-line depreciation is higher than double declining balance depreciation in the early years.

b. Straight-line depreciation is higher than double declining balance depreciation in the later years.

c. Double declining balance is a method of straight-line depreciation.

d. MACRS depreciation requires that salvage value be taken into account.

52. Mark the correct statement.

a. Residential real property is depreciated over 39 years.

b. Nonresidential real property is depreciated over 27.5 years.

c. Nonresidential real property is depreciated over 39 years.

d. Depreciation on real property starts at the beginning of the year in which the property is placed in service.

53. During 2014, Travis purchases $13,000 of used manufacturing equipment (7-year property) for use in his business, his only asset purchase that year. Travis has taxable income from his business of $500,000. What is the maximum amount that Travis may deduct under the election to expense?

a. $0

b. $13,000

c. $25,000

d. $500,000

e. None of the above

54. Aaron has a successful business with $50,000 of income in 2014. He purchased a new 7-year MACRS property with a cost of $7,000. For tax purposes, what is the largest write-off Aaron can obtain in 2014 for the new asset?

a. $500

b. $1,000

c. $3,500

d. $7,000

55. Taxpayers choosing the election to expense:

a. May depreciate the amount of the asset cost that exceeds the amount allowed under the election to expense.

b. Will have the maximum that can be expensed under the election reduced by $0.50 for each dollar by which the cost of the asset acquired exceeds a specified limit.

c. May not carry over any amounts elected which are not allowed because of taxable income limitations.

d. May expense a $125,000 automobile so long as it is used 100 percent for business.

56. On January 1, 2014, Sandy, a sole proprietor, purchased for use in her business a used production machine (7-year property) at a cost of $4,000. Sandy does not purchase any other property during 2014 and has net income from her business of $80,000. If the standard recovery period table would allow $572 of depreciation expense on the $4,000 of equipment purchased in 2014, what is Sandy's maximum depreciation deduction including the Section 179 election to expense (but not bonus depreciation) for 2014?

a. $572

b. $4,000

c. $4,572

d. $25,000

e. None of the above

57. What is the maximum depreciation expense deduction for Year 2 (2015) for a passenger automobile, used 100 percent for qualified business use, placed in service on June 15, 2014 and costing $14,000 (the election to expense is not made and no bonus depreciation was taken)?

a. $2,800

b. $3,160

c. $4,480

d. $5,100

e. None of the above

58. Jasper is a self-employed businessman. On March 5, 2014 he purchases a personal computer for use at his home. He uses the computer for personal purposes 50 percent of the time and for business use the remainder of the time. The computer cost $2,300. Jasper wants to claim the maximum amount of depreciation possible for 2014, including the election to expense, if it is available. What is the amount of depreciation that Jasper should claim on the computer for 2014?

a. $2,300

b. $1,150

c. $460

d. $230

e. Some amount less than the above amounts

59. On June 1, 2014, Sandalwood Corporation purchases a passenger automobile for 100 percent use in its business. The automobile is in the 5 year cost recovery class and has a basis for depreciation of $30,000. Assuming that the corporation elects the accelerated method of cost recovery for the asset and does not elect to expense any of its cost or take bonus depreciation, what is the total tax depreciation deduction for the 2014 calendar tax year (Year 1)?

a. $3,060

b. $3,160

c. $4,287

d. $6,000

e. None of the above

60. Which one of the following may not be depreciated using an accelerated method?

a. A farming tractor

b. A computer used strictly for the farming business

c. A corn-husking machine

d. A farm truck that is operated for personal use more than 50 percent of the time

e. All of the above items may be depreciated using an accelerated method

 

 

default image
July 1, 2023
    

 

51. Mark the correct answer. In calculating depreciation:

a. Straight-line depreciation is higher than double declining balance depreciation in the early years.

b. Straight-line depreciation is higher than double declining balance depreciation in the later years.

c. Double declining balance is a method of straight-line depreciation.

d. MACRS depreciation requires that salvage value be taken into account.

52. Mark the correct statement.

a. Residential real property is depreciated over 39 years.

b. Nonresidential real property is depreciated over 27.5 years.

c. Nonresidential real property is depreciated over 39 years.

d. Depreciation on real property starts at the beginning of the year in which the property is placed in service.

53. During 2014, Travis purchases $13,000 of used manufacturing equipment (7-year property) for use in his business, his only asset purchase that year. Travis has taxable income from his business of $500,000. What is the maximum amount that Travis may deduct under the election to expense?

a. $0

b. $13,000

c. $25,000

d. $500,000

e. None of the above

54. Aaron has a successful business with $50,000 of income in 2014. He purchased a new 7-year MACRS property with a cost of $7,000. For tax purposes, what is the largest write-off Aaron can obtain in 2014 for the new asset?

a. $500

b. $1,000

c. $3,500

d. $7,000

55. Taxpayers choosing the election to expense:

a. May depreciate the amount of the asset cost that exceeds the amount allowed under the election to expense.

b. Will have the maximum that can be expensed under the election reduced by $0.50 for each dollar by which the cost of the asset acquired exceeds a specified limit.

c. May not carry over any amounts elected which are not allowed because of taxable income limitations.

d. May expense a $125,000 automobile so long as it is used 100 percent for business.

56. On January 1, 2014, Sandy, a sole proprietor, purchased for use in her business a used production machine (7-year property) at a cost of $4,000. Sandy does not purchase any other property during 2014 and has net income from her business of $80,000. If the standard recovery period table would allow $572 of depreciation expense on the $4,000 of equipment purchased in 2014, what is Sandy's maximum depreciation deduction including the Section 179 election to expense (but not bonus depreciation) for 2014?

a. $572

b. $4,000

c. $4,572

d. $25,000

e. None of the above

57. What is the maximum depreciation expense deduction for Year 2 (2015) for a passenger automobile, used 100 percent for qualified business use, placed in service on June 15, 2014 and costing $14,000 (the election to expense is not made and no bonus depreciation was taken)?

a. $2,800

b. $3,160

c. $4,480

d. $5,100

e. None of the above

58. Jasper is a self-employed businessman. On March 5, 2014 he purchases a personal computer for use at his home. He uses the computer for personal purposes 50 percent of the time and for business use the remainder of the time. The computer cost $2,300. Jasper wants to claim the maximum amount of depreciation possible for 2014, including the election to expense, if it is available. What is the amount of depreciation that Jasper should claim on the computer for 2014?

a. $2,300

b. $1,150

c. $460

d. $230

e. Some amount less than the above amounts

59. On June 1, 2014, Sandalwood Corporation purchases a passenger automobile for 100 percent use in its business. The automobile is in the 5 year cost recovery class and has a basis for depreciation of $30,000. Assuming that the corporation elects the accelerated method of cost recovery for the asset and does not elect to expense any of its cost or take bonus depreciation, what is the total tax depreciation deduction for the 2014 calendar tax year (Year 1)?

a. $3,060

b. $3,160

c. $4,287

d. $6,000

e. None of the above

60. Which one of the following may not be depreciated using an accelerated method?

a. A farming tractor

b. A computer used strictly for the farming business

c. A corn-husking machine

d. A farm truck that is operated for personal use more than 50 percent of the time

e. All of the above items may be depreciated using an accelerated method

 

 

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Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

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Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

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Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

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Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

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Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

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