21) During the month of January, Katelyn invested $11,000 in starting her legal practice. The proper journal entry would be: A) Cash, debit $11,000; Katelyn’s Capital, credit $11,000 B) Accounts Payable, debit $11,000; Cash, credit $11,000 C) Cash, debit $11,000; Revenue, credit $11,000 D) Katelyn’s Capital, debit $11,000; Cash, credit $11,000   22) Which of the following entries records the acquisition of office supplies […]

  5) Calculate the production-volume variance for fixed setup overhead costs. A) $4,666.67 unfavorable B) $400 unfavorable C) $4,666.67 favorable D) $400 favorable Answer the following questions using the information below:   Lukehart Industries, Inc., produces air purifiers. Lukehart, Inc., produces the air purifiers in batches. To manufacture a batch of the purifiers, Lukehart, Inc., must set up the machines and assembly line tooling. Setup […]

  111. The wage bracket withholding table is used to:  A. Compute social security withholding. B. Compute Medicare withholding. C. Compute federal income tax withholding. D. Prepare the W-4. E. All of these. 112. A table that shows the amount of federal income tax to be withheld from an employee’s pay is the:  A. Form 941. B. Tax table. C. Wage bracket withholding table. D. W-2. E. W-4. 113. A special bank account used solely for the purpose […]

  71. Penn Company uses a job order cost accounting system. In the last month, the system accumulated labor time tickets totaling $24,600 for direct labor and $4,300 for indirect labor. These costs were accumulated in Factory Payroll as they were paid. Which entry should Penn make to assign the Factory Payroll?  A. Debit Payroll Expense $28,900; credit Cash $28,900. B. Debit Payroll Expense $24,600; debit Factory Overhead […]

    31. Pollet Company started business at the beginning of 2012. Pollet selected the FIFO method for its inventory costing. The profits will maximize for 2012 under this method, in a period of: A. rising prices.B. declining prices.C. stable prices.D. prices fluctuating up and down at the same amount consistently throughout the year.   32. Which one of the following statements regarding changing inventory costing methods is true? A. A change in inventory […]

  9.6   Questions 1) Having liabilities classified incorrectly will have a big impact on the company’s current ratio. 2) By NOT accruing warranty expense: A) reported liabilities will be overstated and net income will be understated. B) reported expenses will be overstated and reported liabilities will be understated. C) reported liabilities will be understated and net income will be overstated. D) reported expenses will be […]

  126.The following is a partially completed lower section of a departmental expense allocation spreadsheet for Brickland. It reports the total amounts of direct and indirect expenses for the four departments. Purchasing department expenses are allocated to the operating departments on the basis of purchase orders. Maintenance department expenses are allocated based on square footage. Compute the amount of Maintenance department expense to be allocated […]

    21. Clear Window Cleaners Clear Window Cleaners purchased new cleaning equipment at the beginning of 2011. The equipment has a cost of $53,000, an estimated life of 5 years, and an estimated residual value of $3,000. A full year’s depreciation expense is to be recorded in 2011. The equipment was used 20,000 hours during 2011 and 24,000 hours during 2012. The number of expected […]

  MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 21) Units of production that can be reprocessed and then be sold as finished goods are best known as 21) ______ A) scrap. B) work-in-process. C) normal spoilage. D) abnormal spoilage. E) reworked units. 22) Items with minimal sales value are known as 22) ______ A) reworked units. B) […]

    61. For manufacturing firms, the balance sheet reports the costs of incomplete items as   A. Raw Materials Inventory. B. Work-in-Process Inventory. C. Finished Goods Inventory. D. Cost of goods ready for sale. E. none of the above.   62. Manufacturing overhead includes:   A. costs that the firm cannot associate with particular products. B. expenditures for factory utilities, property taxes, insurance, and depreciation on manufacturing plant and equipment. C. expenditures for supervisors’ […]