71. The method of accounting for investments in equity securities in which the investor records its share of periodic net income of the investee is the A. cost method B. market method C. income method D. equity method 72. When shares of stock held as an investment are sold, the difference between the proceeds and the carrying amount of the investment is recorded as a(n) A. prior period adjustment […]
4.The following is the cash ledger account for Jensen Corp., which summarizes events that impacted the cash account during 2010. CASH Balance 1/02/10 15,000 Interest payments 4,000 Receivable collections 26,000 Fixed asset purchases 56,000 Cash sales 59,000 Wages 12,000 Sale of land 48,000 Dividend payments 7,000 Issue of common stock 31,000 Accounts payable payments 36,000 Interest collections 3,000 Using the information […]
71. A sawmill bought a shipment of logs for $40,000. When cut, the logs produced a million board feet of lumber in the following grades. Compute the cost to be allocated to Type 1 and Type 2 lumber, respectively, if the value basis is used. Type 1 – 400,000 bd. ft. priced to sell at $0.12 per bd. ft. Type 2 – 400,000 bd. ft. […]
71. Which of the following is not true? A. Firms issue common stock for assets other than cash, for example, to acquire another firm. B. Firms generally issue common shares, both at the time of initial incorporation and in subsequent years, for amounts greater than par (or stated) value. C. The firm records the shares exchanged for noncash assets at the fair value of the shares given or, […]
52. Assume a spending bill has been passed by Congress and signed by the President. The journal entries at the agency level to record this event will include: A)a debit to the account Unexpended Appropriations B)a debit to the account Unapportioned Authority C)a debit to the account Fund Balance with Treasury D)None of the above 53. Assume the OMB apportions 1/4th of an appropriation to a […]
101.Better Blankets, Inc. makes a SnuggieBlank using flannel material and trim binding. They have instituted a successful JIT system and thus no longer have to stock inventory prior to their production need. The Standard Cost Card for The SnuggieBlank model is shown. The company reported the following results concerning January results: The material quantity variance for Trim used in January is: A. $5,640 favorable. B. $5,640 […]
4.2 Questions 1) Most businesses today use the periodic inventory method. 2) Because of innovative and computerized methods of tracking inventory, most businesses today use the perpetual inventory method. 3) In the perpetual inventory system, inventory is constantly updated through the inventory tracking system. 4) Under the perpetual inventory system, the need for a physical count of inventory is eliminated. 5) When the perpetual […]
131. Debtors are interested in the times-interest-earned ratio because they want to A. know what rate of interest the corporation is payingB. have adequate protection against a potential drop in earnings jeopardizing their interest paymentsC. be sure their debt is backed by collateralD. know the tax effect of lending to a corporation 132. Any unamortized premium should be reported on the balance sheet of the issuing corporation as A. a direct […]
41. A department that incurs costs without directly generating revenues is a:A. Service centerB. Production centerC. Profit centerD. Cost centerE. Performance center 42. Regardless of the system used in departmental cost analysis:A. Direct costs are allocated, indirect costs are not.B. Indirect costs are allocated, direct costs are not.C. Both direct and indirect costs are allocated.D. Neither direct nor indirect costs are […]
Short Answer Questions Paulsen Company sells only one product. The regular selling price is $50. Variable costs are 70% of this selling price, and fixed costs are $7,500 per month.Management decides to increase the selling price from $50 to $55 per unit. Assume that the cost of the product and the fixed operating expenses are not changed by this pricing decision. […]
16) The partial productivity of overhead resources can be measured by considering the cost driver as ________.
A) budgeted input
B) the denominator
C) the fixed input
D) the numerator
17) Which of the following statements is true of productivity measures?
A) Partial productivity and total factor productivity measures never work best together.
B) Partial productivity explicitly considers gains from using fewer physical inputs as well as substitution among inputs.
C) All productivity measures are physical measures lacking financial content.
D) Total factor productivity considers the trade-offs across various inputs based on current input prices.
18) ________ is an example of a total factor productivity measure.
A) The number of units produced per month
B) The number of units produced per machine hour
C) The number of units produced per labor hour
D) The number of units produced per dollar of input cost
19) Total factor productivity explicitly considers gains from using fewer physical inputs as well as substitution among inputs.
20) Partial productivity and total factor productivity measures work best together because both measures have the same kind of strengths and weaknesses.
21) One problem with total factor productivity revolves around the measurement of combined productivity of all inputs.
22) Productivity describes the relationship between different quantities of inputs consumed and the quantities of output produced.
23) Power Company has been unhappy with the financial accounting variances that its cost accounting system has been producing, because its managers believe that there is more to evaluating an operation than just examining accounting numbers. Therefore, it has started gathering data to assist in the examination of nonfinancial results of operations. The following information relates to the manufacture of remote control units for televisions, radios, and stereo components:
20112012
Remote control units produced and sold80,000100,000
Direct manufacture labor-hours12,00013,200
Direct materials used (sets)80,600100,500
Direct manufacture cost per hour$18$20
Direct materials cost per set$31$32
Required:
a.What is the partial productivity of direct materials for each year?
b.What is the partial productivity of direct manufacturing labor for each year?
c.Did each area improve between 2011 and 2012? Explain.
d.What will be the projected direct material and labor needs for 2013 if remote control units increase by 12,000 units, assuming Power Company applies the constant returns to scale technology?
24) Grader Company manufactures road graders. Because its managers all have engineering backgrounds, they prefer nonfinancial information for their decision-making models. Therefore, they require the accountants gather data to assist in the examination of nonfinancial results of operations. The following information relates to the manufacture of a paver:
20112012
Units produced and sold6,8005,600
Direct manufacture labor-hours136,000115,200
Direct materials used (tons)29,00024,400
Direct manufacture cost per hour$21$22
Direct materials cost per ton$431$443
Required:
a.What is the partial productivity for direct materials for each year?
b.What is the partial productivity for direct manufacturing labor for each year?
c.What is the total factor productivity for each year?
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