118.Charm Enterprises’ production budget shows the following units to be produced for the coming three months:  AprilMayJune Units to be produced2,5602,8802,760 A finished unit requires four ounces of a key direct material. The March 31 Raw Materials inventory has 2,560 ounces (oz.) of the material. Each month’s ending Raw Materials inventory should be 35% of the following month’s production needs. The materials to be […]

  91.The following data is from the income statement of Randall Company:  The company’s gross margin percentage is:    A. 15.625%. B. 40.625%. C. 59.375%. D. none of these. 92.Apex Company uses the periodic inventory cost flow method. If Apex’s ending inventory is overstated due to an accounting error, what is the effect on net income and retained earnings?      A. Option A B. Option B C. Option C D. Option D 93.Southland Company uses the […]

  25) Orange Corporation has budgeted sales of 16,000 units, targeted ending finished goods inventory of 4,000 units, and beginning finished goods inventory of 2,000 units. How many units should be produced next year? A) 22,000 units B) 20,000 units C) 18,000 units D) 16,000 units   26) For next year, Roberto, Inc., has budgeted sales of 15,000 units, targeted ending finished goods inventory of […]

  91. When standard manufacturing costs are recorded in the accounts and the cost variances are immaterial at the end of the accounting period, the cost variances should be:  A. Carried forward to the next accounting period. B. Allocated between cost of goods sold, finished goods, and goods in process. C. Closed to cost of goods sold. D. Written off as a selling expense. E. Ignored. 92. Landlubber Company established a standard […]

115.A company would be considered to have a complex capital structure if it had   a. convertible bonds. b. preferred stock. c. long-term notes payable. d. common stock.       116.A convertible security is used in the computation of   a. both basic and diluted earnings per share. b. diluted earnings per share only. c. neither basic nor diluted earnings per share. d. basic […]

  41.Selecting an inventory cost flow assumption will most likely be impacted by which one of the following? a.The physical flow of the inventory goods. b.The cost of the company’s plant and equipment. c.Income taxes. d.The cost flow assumptions most often used by other companies. 42.All of the following are typically associated with Japanese business inventory accounting except: a.the use of the average assumption for […]

  85. The adjusted, preclosing trial balances of Pie Company and Soup Company on December 31, Year 2, appear below.          $  4,000   $  1,000   Accounts Receivable         Merchandise Inventory 10,000   10,000   Investment in Soup Company 9,000   —   Land l,000   2,000   Buildings and Equipment, net     5,000   Accounts Payable   $17,500   […]

  11.Some theorists argue that the best measure of the employer’s defined benefit pension plan obligation is the accumulated benefit obligation. a.Since the accumulated benefit obligation is measured using current salaries, it represents the conservative floor for a company’s pension obligation to its employees. b.It is consistent with the measurement of pension expense. c.Since the accumulated benefit obligation is measured using future salaries, it represents […]

    33.Carrier Corporation produces heating and air conditioning equipment at a number of plants throughout the United States including one in Syracuse, New York. Carrier should evaluate its Syracuse plant as:    A. A cost center.   B. An investment center.   C. A profit center (other than an investment center).   D. A committed center.         34.Carrier Corporation’s Syracuse plant is organized into Air Conditioning […]

  200. Use the following financial statements and additional information to (1) prepare a complete statement of cash flows for the year ended December 31, 2013. The cash provided or used by operating activities should be reported using the direct method, and (2) compute the company’s cash flow on total assets ratio for 2015. Derby Company Balance Sheets At December 31   2015   2014   […]