115.Fletcher Company collected the following data regarding production of one of its products. Compute the total direct materials variance.  A.$6,000 favorable. B.$3,570 unfavorable. C.$2,430 favorable. D.$6,000 unfavorable. E.$3,570 favorable. 116.Fletcher Company collected the following data regarding production of one of its products. Compute the direct materials price variance.  A.$2,430 unfavorable. B.$3,570 unfavorable. C.$2,430 favorable. D.$6,000 unfavorable. E.$3,570 favorable. 117.Fletcher Company collected the following data […]

    111. A company has two products: A and B. It uses activity-based costing and has prepared the following analysis showing budgeted cost and activity for each of its three activity cost pools:      Budgeted Activity Activity Cost Pool Budgeted Cost   Product A   Product B Activity 1 $87,000 3,000 2,800 Activity 2 $62,000 4,500 5,500 Activity 3 $93,000 2,500 5,250 Annual […]

  18.4   Learning Objective 18-4 1) The journal entry for the receipt of a cash payment on common stock subscriptions would include: A) debiting Subscriptions Receivable—Common Stock; crediting Common Stock. B) debiting Common Stock; crediting Subscriptions Receivable—Common Stock. C) debiting Cash; crediting Subscriptions Receivable—Common Stock. D) debiting Cash; crediting Common Stock Subscribed. 2) The Bean Counter Corporation received subscriptions for 100 shares of its $12 […]

118.Assume a company uses the periodic inventory system and has a beginning merchandise inventory balance of $5,000, purchases of $75,000, and sales of $125,000. The company closes its records once a year on December 31. In the accounting records, the merchandise inventory account would be expected to have a balance on December 31 prior to adjusting and closing entries that was   a. more than […]

  41.Accounting numbers are useful in that they d.help investors and creditors influence, manipulate, and monitor management’s business decisions so that future profits are high. 42.The two fundamental ways in which financial accounting numbers are useful are                   prediction and influence.                   control and monitoring.                    prediction and monitoring.                   control and prediction. 43.True value of a company is determined by                      adding adjustments for […]

  Multiple Choice Questions     31. Which of the following statements is correct?  A. Current liabilities are initially recorded at the amount of their principal plus interest. B. Current liabilities are those liabilities due within one year. C. Liquidity refers to the ability to pay all debts within one year. D. Current liabilities affect both the quick ratio and working capital. 32. Which of the following is not a current […]

  8) Which of the following is the most widely used method of allocating support department costs? A) linear equation method B) step-down method C) hybrid method D) reciprocal method E) direct allocation method Use the information below to answer the following question(s).   Joe’s Tire Company has two support departments, Personnel and Maintenance. The Maintenance Department costs of $80,000 are allocated on the basis […]

    56. Cannon Manufacturing Co. sold equipment that cost $18,000 for $6,000. A loss on sale of $1,000 was recorded. How is the Cash Flows from Investing Activities affected?  A. A cash inflow of $5,000 is recorded. B. A cash inflow of $6,000 is recorded. C. A cash inflow of $11,000 is recorded. D. A cash inflow of $12,000 is recorded.   57. The Natural Company’s balance sheet would report […]

    111. Accounts receivable arising from sales to customers amounted to $40,000 and $31,000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $120,000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is  A. $120,000.B. $129,000.C. $151,000.D. $111,000.   112. If accounts payable have increased during […]

    121. The net income reported on the income statement is $58,000.  However, adjusting entries have not been made at the end of the period for supplies expense of $2,200 and accrued salaries of $1,300.  Net income, as corrected, is A. $56,700B. $58,000C. $55,800D. $54,500   122. At the end of the fiscal year, the usual adjusting entry to Prepaid Insurance to record expired insurance was omitted.  Which of the following […]