Answer the following questions using the information below:   The Daltry Tractor Company manufactures small garden tractors on a highly automated assembly line. Its costing system uses two cost categories, direct materials and conversion costs. Each tractor must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout […]

    Objective 3.1   1) Managers use cost-volume-profit (CVP) analysis to ________. A) forecast the cost of capital for a given period of time B) to study the behavior of and relationship among the elements such as total revenues, total costs, and income C) estimate the risks associated with a given job D) analyse a firm’s profitability and help to decide wealth distribution among […]

  60.With respect to public colleges engaged in business-type activities, which of the following is not correct? A)GASB requirements for business-type activities of public colleges requires accrual account for debt, include accrual of interest and amortization of debt discount and premium. B)Most public college foundations are required to be reported as discretely presented component units in the college’s financial report. C)Only amounts that are to […]

  91. To record estimated uncollectible accounts using the allowance method, the adjusting entry would be a  A. debit to Bad Debts Expense and a credit to Allowance for Doubtful Accounts. B. debit to Accounts Receivable and a credit to Allowance for Doubtful Accounts. C. debit to Allowance for Doubtful Accounts and a credit to Accounts Receivable. D. debit to Loss on Credit Sales and a credit to Accounts Receivable. […]

  11) If the cosmetic department in the store measures 20,000 square feet and the total building cost is $60,000 for a 40,000 square foot building, the cost that would be allocated to the cosmetic department would be: A) $30,000. B) $10,000. C) $22,500. D) $7,500. 12) If the music department in a department store is 8,000 square feet and the total square feet is […]

  31) Which of the following terms represents additional costs required to obtain an additional quantity, over and above existing or planned quantities of a cost object? 31) ______ A) contract pocket costs B) contract expense C) super variable costs D) contract increase costs E) outlay costs 32) A one-time-only special order decision 32) ______ A) allows a company to sell products at prices which […]

    101.Preparation of interim financial statements:    A.Makes the preparation of year-end financial statements unnecessary.   B.Requires the journalizing and posting of adjusting entries.   C.Requires the journalizing and posting of closing entries.   D.Is done monthly or quarterly or in-between the year-end financial statements.         102.If monthly financial statements are desired by management:    A.Journalizing and posting adjusting entries must be done […]

  3.3   Learning Objective 3-3 1) If the debit and credit totals of a trial balance are not equal, it could be due to the following type of error: A) Failure to record a transaction B) Recording the same erroneous amount for both the debit and the credit sides of a transaction C) Incorrectly calculating the debit side of the trial balance D) Recording the […]

  103. The following information is available for the Noir Detective Agency, Inc.. After these closing entries what will be the balance in the  Retained Earnings account? Net Loss……………………$17,600 Retained earnings………289,000 Dividends………32,000 A. $239,400. B. $274,600. C. $303,400. D. $289,000. E. $257,000. 104. The  Retained Earnings account has a credit balance of $37,000 before closing entries are made. If total revenues for the period are $55,200, total expenses are $39,800, and  dividends […]

  165.Castaway Company reports the following first year production cost information:  Units produced53,000 units Units sold51,000 units Direct labor$8 per unit Direct materials$4 per unit Variable overhead$2,173,000 in total Fixed overhead$3,339,000 in total a. Compute production cost per unit under variable costing. b. Compute production cost per unit under absorption costing. c. Determine the cost of ending inventory using variable costing. d. Determine the cost […]