21. Which of the following costs generally can be traced directly to units of product?  A. Indirect materials B. Assembly labor C. Overhead costs D. Indirect materials and assembly labor 22. Some costs that possibly could be traced directly to cost objects are nonetheless classified as indirect costs because:  A. Such practice results in a more accurate accumulated cost for the object. B. Such costs cannot be traced to objects in a […]

    108.Mary Martin, the owner of Martin Consulting, Inc., started the business by investing $40,000 cash. Identify the general journal entry below that Martin Consulting, Inc. will make to record the transaction.     A.  Cash40,000 Common Stock 40,000     B.  Common Stock40,000 Cash 40,000     C.  Investments40,000 Cash 40,000     D.  Investments40,000 Common Stock 40,000     E.  Cash40,000 Increased Equity 40,000           109.If cash is received […]

    21.If I invest $50,000 today for 5 years and it grows to $84,253, what rate of interest have I received?    A. 5%.   B. 6%.   C. 11%.   D. 12%. $50,000 × 1.68506 = $84,253 [$84,253/$50,000 = 1.685. On Future Value of $1 Table, 1.685 corresponds with 5 periods at 11% interest.]       22.How much must I invest today in order to have $25,000 […]

  Objective 17.2   1) In a process-costing system average unit costs are calculated ________. A) by dividing total costs in a given accounting period by total units produced in that period B) by multiplying total costs in a given accounting period by total units produced in that period C) by dividing total costs in a given accounting period by units started in that period […]

    81. A company is preparing a common-size balance sheet and wishes the base amount to be the total amount of assets. What are the 2013 and 2014 common-size percents for cash?    2013 2014 Cash $21,904 $32,203 Total current assets 101,769 141,128 Property and equipment 112,577 202,558 Long-term investments 12,700 4,344 Intangible assets 16,621 48,703 Other long-term assets 11,709 13,754 Total assets $255,376 $410,487 […]

  156. On the basis of the following data for Grant Co. for 2011 and the preceding year ended December 31, 2010, prepare a statement of cash flows.  Use the indirect method of reporting cash flows from operating activities.  Assume that equipment costing $125,000 was purchased for cash and equipment costing $85,000 with accumulated depreciation of $65,000 was sold for $15,000; that the stock was issued […]

  80.Using conversion cost per equivalent unit is appropriate for many business that use process costing because:    A.Direct materials and direct labor are usually entered into the production process at the same rate. B.All manufacturing costs are entered into the production process in the same period. C.Equivalent cost per unit is not sufficient measurement of production activity. D.The weighted average method of calculating equivalent units […]

  139.  On February 15, Jewel Company buys 7,000 shares of Marcelo Corp. common stock at $28.53 per share plus a brokerage fee of $400. The stock is classified as available-for-sale securities. On March 15, Marcelo Corp. declares a dividend of $1.15 per share payable to stockholders of record on April 15. Jewel Company received the dividend on April 15 and ultimately sells half of […]

  61) Assume that you are working on a normal job costing system similar to the one shown in exhibit 4-5. One of the junior accountants has uncovered errors in that the following amounts were mistakenly omitted and not recorded.   Direct labour hours             1,000 Direct materials cost         $12,000 Marketing costs         […]

    71. A company paid $47,500 plus a broker’s fee of $400 to acquire 8% bonds with a $60,000 maturity value. The company intends to hold the bonds to maturity. The cash proceeds the company will receive upon maturity of the bonds is:  A. $60,000 B. $60,400 C. $47,900 D. $64,800 E. $52,300       72. Accounting for long-term investments in equity securities with controlling influence uses the:  A. Controlling method. […]