151.Lester Company purchases a piece of equipment on Jan. 2, 20×7, for $30,000. The equipment has an estimated life of eight years or 50,000 units of production and an estimated residual value of $3,000. Lester uses a calendar fiscal year. The amount of depreciation to be recorded for 20×7, using the double-declining-balance method, is   a. $7,500. b. $5,000. c. $5,500. d. $4,500.     […]

  Use the information below to answer the following question(s).   Beauty Supply Company manufactures shampoo. The supervisor has provided the following information and stated that standard costing is used for manufacturing, marketing, and administrative costs.     January February Beginning inventory 0 — Production 2,500 3,000 Sales 2,250 3,025   Other information:     Selling price   $20.00 Standard variable manufacturing cost/unit   $8.00 […]

  81. Production and sales estimates for March for the Finneaty Co. are as follows:  Estimated inventory (units), March 1 17,500 Desired inventory (unit), March 31 19,300     Expected sales volume (units):     Area M 6,000   Area L 7,000   Area O 9,000 Unit sales price $15     The number of units expected to be manufactured in March is: A. 22,000B. 1,800C. 23,800D. 20,200 82. Production and sales […]

    81. A company had a bulldozer destroyed by fire. The bulldozer originally cost $125,000. The accumulated depreciation on it was $60,000. The proceeds from the insurance company were $90,000. The company should recognize:  A. A loss of $25,000. B. A gain of $25,000. C. A loss of $65,000. D. A gain of $65,000. E. A gain of $90,000.     82. Blanket Corporation sold equipment for cash of $40,500. Accumulated […]

  61. The useful life of a plant asset is:  A. The length of time it is productively used in a company’s operations. B. Never related to its physical life. C. Its productive life, but not to exceed one year. D. Determined by the FASB. E. Determined by law. 62. Inadequacy refers to:  A. The insufficient capacity of a company’s plant assets to meet the company’s growing production demands. B. An asset that is […]

  31) Disc Company sells 400 discs per week. Purchase-order lead time is 3 weeks and the economic-order quantity is 900 units. What is the reorder point? A) 950 units B) 1,200 units C) 3,500 units D) 4,500 units E) 5,600 units 32) Owen-King Company sells optical equipment. Lens Company manufactures special glass lens. Owen-King Company orders 5,200 lens per year, 100 per week at […]

  141. Which of the following is not considered to be a liability?  A. Wages Payable B. Accounts Receivable C. Unearned Revenues D. Accounts Payable 142. Which of the following statements is not true about liabilities?  A. Liabilities are debts owed to outsiders. B. Account titles of liabilities often include the term “payable”. C. Cash received before services are performed are considered to be liabilities. D. Liabilities do not include wages owed to employees of […]

  3.2   Multiple-Choice Questions 1) Which of the following statements is true of the engaging attorney? A) The basic purpose of attorneys is to advocate for their clients. B) Attorneys are generally unwilling to sacrifice the expert’s reputation even at the cost of client. C) It is not possible to distinguish a bad attorney from a good one. D) Keeping the expert in the loop […]

  177.Bagger, Inc. uses a process costing system. The following operating and cost data occurred during October:  October 1, Inventory:30,000 units100% complete for materials($60,000) and 50% completefor direct labor ($7,500) andoverhead ($15,000) October 31, Inventory:20,000 units100% complete for materialsand 30% complete fordirect labor and overhead Units started during Oct.:40,000 units October production costs:Direct materials$110,100 Direct labor28,900 Overhead57,800 Materials are added at the beginning of the […]

111.Use this information to answer the following question.   The Retained Earnings, Dividends, and Income Summary accounts for Gula’s Repair Corporation for the accounting period are presented below in T account form after the recording and posting of closing entries:     The amount of net income (or net loss) for the period is   a. $300 net loss. b. $300 net income. c. $900 […]