71. Dary Co. Produces a single product. Its normal selling price is $28 per unit. The variable costs are $18 per unit. Fixed costs are $20,000 for a normal production run of 5,000 units per month. Dary received a request for a special order that would not interfere with normal sales. The order was for 1,500 units and a special price of $17.50 per unit. […]

  134. The inventory at April 1, 2007, and the costs charged to Work in Process–Department B during April for Barley Company are as follows:  500 units, 60% completed$  3,460 From Department A, 10,000 units36,300 Direct labor7,960 Factory overhead12,500 During April, all direct materials are transferred from Department A, the units in process at April 1 were completed, and of the 10,000 units entering the department, all […]

  61. Which of the following is not an adjustment when arriving at net cash provided by operating activities under the indirect method?  A. Noncash expenses such as depreciation expense B. Gains and losses on the sale of long-term assets C. Changes in noncash current asset and current liability accounts D. Changes in a company’s long-term assets 62. Under the direct method, which of the following would not be included in […]

  24.3   Learning Objective 24-3 1) When preparing an income statement showing departmental contribution margin: A) indirect expenses are combined with direct expenses. B) indirect departmental expenses are added to contribution margin. C) direct expenses are subtracted from gross profit of a department. D) None of these answers is correct. 2) Compute the contribution margin for the video department, when gross profit is $970,000, direct […]

  91. Which of the following statements regarding the debt to equity ratio is correct?  A. A high ratio means that the company is primarily financed through stockholder investments. B. A higher ratio is preferred. C. It is a measure of a company’s ability to pay its debt. D. It is a measure of investor and creditor risk. 92. On July 1, 2011, immediately after recording interest payments, Salsa, Inc. retired […]

  141. The board of directors declared cash dividends totaling $242,000 during the current year. The comparative balance sheet indicates dividends payable of $48,000 at the beginning of the year and $59,000 at the end of the year. What was the amount of cash payments to stockholders during the year?  142. An analysis of the general ledger accounts indicates that equipment, which had cost $148,000 and on […]

    31. Which of the following items will be found in a corporate annual report?  A. Industry standards B. Notes to the financial statements C. Selected financial data from non-competitor companies D. Management’s statement on auditors responsibility for the financial statements.   32. Which one of the following items is least likely to be found in a corporate annual report?  A. Notes to the financial statements B. Internal budget reports C. Auditor’s report […]

    111. Spirit Company, a merchandiser, recently completed the 2013 calendar year. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid […]

  15) FILLO, Inc.’s inventory activity in May 2011 was as follows: Inventory, May 1 100 units @ $8 each Purchase, May 7 300 units @ $6 each Sale, May 18 250 units @ $15 each   Part A: Record the effect of the above inventory activity on the accounting equation assuming perpetual weighted average cost is used. Shareholders’ equity   Transactions in May, 2011: […]

    33. Disneyland is one of several theme parks owned by The Walt Disney Company. Disneyland should be evaluated as:  A. An investment center. B. A cost center. C. An entertainment center. D. A profit center (other than an investment center).     34. Disneyland charges visitors for admission to the park but not for individual rides or attractions. “Splash Mountain” is one of the rides in Disneyland. The Walt […]