7) ________ would be a consideration in a make-or-buy decision. A) Excess capacity B) Rental income from unused facilities C) Variable factory overhead D) All of the above are correct. 8) If a company has excess capacity, the most it would pay for buying a product that it currently makes would be the: A) total variable cost of producing the product B) market […]
1. Which of the following is an internal event? A. Caddie salaries are paid by a country club. B. Dividends are distributed to a company’s stockholders. C. Potatoes used in a fast-food restaurant are purchased. D. Products are transferred from the assembly area to the painting station. 2. Which of the following is not an external event? A. A grocery store recognizes losses from spoilage. B. A grocery store runs ads in […]
Multiple Choice Questions 61.Which of the following is not one of the policies and procedures that make up an internal control system? A.Protect assets. B.Ensure reliable accounting. C.Guarantee a return to investors. D.Urge adherence to company policies. E.Promote efficient operations. 62.Managers place a high priority on internal control systems because the systems assist managers in […]
21) Indicate the proper journal to use to record each of the following transactions. Use S for sales journal, P for purchases journal, CR for cash receipts journal, CP for cash payments journal, and G for general journal. a)Owner investment of cash________ b)Owner withdrawal of cash________ c)Payment of accrued salaries________ d)Sales of furniture in exchange for a note receivable________ e)Receipt of payment on account________ […]
88.Which of the following descriptions would not fit the definition of a liability? a. Present obligation for future payment. b. Result of past transaction. c. Obligation to deliver services already paid for. d. Future obligation for future salary payments. 89.Usually, failure to record a liability means failure to record a(n) a. revenue. b. asset. c. expense. d. note. […]
21) Sterling Supply uses a periodic inventory system. Sterling Supply sold 25 globes during March. Other data for March includes: Mar. 1 Balance 30 @ $12 11 Purchased 20 @ $15 25 Purchased 10 @ $10 Round per unit cost to two decimal places. Ending inventory under the weighted-average method is: A) $281.25. B) $155.00. C) $443.45. D) $168.75. 22) […]
Objective 18.5 1) The Peric Manufacturing Shop produces motorcycle parts. Typically, 12 pieces out of a job lot of 1,000 parts are spoiled. Costs are assigned at the inspection point, $40.00 per unit. Spoiled pieces may be disposed at $8.00 per unit. The spoiled goods must be inventoried appropriately when the normal spoilage is detected. The current job requires the production of 3,000 […]
148.Identify the statement below that is true. A.If the trial balance is in balance, it proves that no errors have been made in recording and posting transactions. B.The trial balance is a book of original entry. C.Another name for the trial balance is the chart of accounts. D.The trial balance is a list of all accounts from the ledger with their balances at a […]
Answer the following questions using the information below:
The Cold Spring Harbor Corporation currently leases a corporate suite in an office building for a cost of $180,000 a year. Only 70% of the corporate suite is currently being used. A start-up business has proposed a plan that would use the other 30% of the suite and increase the overall costs of maintaining the space by $20,000.
6) If the stand-alone method were used, what amount of cost would be allocated to the start-up business?
A) $20,000
B) $54,000
C) $60,000
D) $74,000
7) If the incremental method were used, what amount of cost would be allocated to the start-up business?
A) $20,000
B) $54,000
C) $60,000
D) $74,000
8) The stand-alone method of allocating common costs emphasizes fairness and equity among users.
9) Under the incremental method, the first incremental user usually receives the highest allocation of the common costs.
10) A common cost is a cost of operating a facility or activity that is shared by two or more users.
11) Allocating common costs is clear-cut and can best be achieved by using the stand-alone cost-allocation method.
12) The stand-alone cost allocation method ranks the individual users of a cost object in order of users most responsible for a common cost and then uses these rankings to allocate the costs among the users.
13) The Shapley value method of allocating common costs considers each party as first the primary party and then the incremental party and computes an average allocation.
14) The Maintenance Department has been servicing Gizmo Production for four years. Beginning next year, the company is adding a Scrap-Processing Department to recycle the materials from Gizmo Production. As a result, maintenance costs are expected to increase from $480,000 per year to $500,000 per year. The Scrap-Processing Department will use 25% of the maintenance efforts.
Required:
a.Using the stand-alone cost-allocation method, identify the amount of maintenance cost that will be allocated to Gizmo Production and the Scrap-Processing Department next year.
b.Using the incremental cost-allocation method, identify the amount of maintenance cost that will be allocated to Gizmo Production and the Scrap-Processing Department next year.
15) The Product Data Center has been servicing the Struble Production Casting Department for five years. Beginning next year, the company is adding a Production Molding Department to compliment the materials produced by the Struble Production Casting Department. As a result, data center costs are expected to increase from $700,000 per year to $800,000 per year. The Production Molding Department will use 20% of the data center efforts.
Required:
a.Using the stand-alone cost-allocation method, identify the amount of data center cost that will be allocated to Struble Production Casting and the Production Molding Department next year.
b.Using the incremental cost-allocation method, identify the amount of data center cost that will be allocated to Struble Production Casting and the Production Molding Department next year.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more