11) Spice Company completed the following transactions:   May 10Prepared voucher #301 for purchase of merchandise for $3,600 from Sugar Company 12Returned $500 of the merchandise purchased from Sugar because of poor quality. Cancelled voucher #301 and replaced it with voucher #305.   Required: Prepare journal entries to record the above transactions. Assume Spice uses the gross approach method for recording purchases. Omit explanations. […]

  111. Transactions affecting stockholders’ equity include  A. shares of capital stock issued to stockholders and payment of liabilities B. shares of capital stock issued to stockholders, dividends declared and paid to stockholders, revenues, and expenses C. shares of capital stock issued to stockholders, revenues, expenses, and collection of accounts receivable D. dividends declared and paid to stockholders, revenues, expenses, and purchases of supplies on account 112. Clifford Moore purchased $15,000 […]

    61. The Kaumajet Factory produces two products – table lamps and desk lamps. It has two separate departments – finishing and production. The overhead budget for the finishing department is $550,000, using 500,000 direct labor hours. The overhead budget for the production department is $400,000 using 80,000 direct labor hours. If the budget estimates that a table lamp will require 2 hours of finishing […]

  Objective 23.3   Answer the following questions using the information below:   Ruth Cleaning Products manufactures home cleaning products. The company has two divisions, Bleach and Cleanser. Because of different accounting methods and inflation rates, the company is considering multiple evaluation measures. The following information is provided for 20X5:     ASSETS INCOME   Book value Current value Book value Current value Bleach $225,000 […]

  Objective 7.5   1) A favorable price variance for direct materials indicates that: A) a lower price than planned was paid for materials B) a higher price than planned was paid for materials C) less material was used during production than planned for actual output D) more material was used during production than planned for actual output   2) A favorable efficiency variance for […]

  11) Which of the following is a sign that a “smoothing out” costing system exists? A) Managers rely on data originated by the cost system. B) The company wins bids they thought had low margins. C) A batch consumes a relatively high level of input materials and conversion activities and is reported to have a relatively high cost. D) A batch consumes a relatively […]

    57.A post-closing trial balance could include all of the following except the    A. owner’s capital account.   B. Cash account.   C. Fees Income account.   D. Accounts Receivable account.         58.Which of the following accounts is a permanent account?    A. Supplies   B. Supplies Expense   C. Owner’s drawing   D. Fees Income         59.All of the following accounts will appear on the post-closing […]

Question Enter transactions to the appropriate journals (Sales, Purchases, Cash Receipts, Cash Disbursements or General Journal). An example is shown for each special journal. Post to the appropriate subledgers and general ledger accounts. Prepare a trial balance Prepare an income statement Prepare a balance sheet. Prepare schedules of AR and AP to test the accuracy of the subledgers The Manson Company completed these transactions during […]

  Objective 4.5   1) The budgeted indirect-cost rate is calculated: A) at the beginning of the year B) during the year C) at the end of each quarter D) at the end of the year 2) The difference between actual costing and normal costing is: A) normal costing uses actual quantities of direct-costs B) actual costing uses actual quantities of direct-costs C) normal costing […]

  21) Companies typically wait for accurate information regarding actual manufacturing overhead costs before pricing a job.   22) The budgeted indirect cost rate is the budgeted indirect costs divided by budgeted quantity of the cost allocation base. 23) Direct costs are traced the same way for actual costing and normal costing.   24) Normal costing assigns indirect costs based on an actual indirect-cost rate. […]