54. Partridge Co. can further process Product J to produce Product D. Product J is currently selling for $21 per pound and costs $15.75 per pound to produce. Product D would sell for $37 per pound and would require an additional cost of $9.25 per pound to produce. What is the differential revenue of producing Product D? A. $6.75 per poundB. $9.25 per poundC. $16 per poundD. $5.25 per […]

  41.Changes in accounting methods must be disclosed in three prominent places. These are a.the auditor’s report, financial statement notes, and the balance sheet. b.financial statement notes, the income statement, and the auditor’s report. c.the balance sheet, the income statement, and the statement of cash flows. d.notes to financial statements, the management letter, and the income statement. 43.Makar Corporation reported net income before extraordinary items […]

  151. The Winston Company estimates that the factory overhead for the following year will be $1,250,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 50,000 hours. The total machine hours for the year was 54,300. The actual factory overhead for the year was $1,375,000. a) Determine the total factory overhead amount applied. b) […]

    171. If sales are $500,000, variable costs are 75% of sales, and operating income is $50,000, what is the operating leverage? A. 0B. 1.25C. 2.2D. 2.5   172. The Rocky Company reports the following data.   Sales $700,000   Variable costs $300,000   Fixed costs $120,000       Rocky Company’s operating leverage is: A. 3.33B. 2.5C. 1.0D. 1.4   173. Rusty Co. sells two products, X and Y. Last year Rusty sold 5,000 units of […]

  181. Savvy Sightseeing had beginning equity of $72,000; revenues of $90,000, expenses of $65,000, and  dividends  to stockholders of $9,000. Calculate the ending equity. A. $88,000. B. $25,000. C. $97,000. D. $38,000. E. $47,000. 182. Doc’s Ribhouse had beginning equity of $52,000; net income of $35,000, and  Dividends by the company of $12,000. Calculate the ending equity. A. $(5,000). B. $29,000. C. $5,000. D. $99,000. E. $75,000. 183. A company’s balance sheet shows: cash $24,000, accounts receivable […]

  88.A plan that shows the expected cash inflows and cash outflows during the budget period, including receipts from loans needed to maintain a minimum cash balance and repayments of such loans, is called a(n):    A. Capital expenditures budget. B. Operating budget. C. Rolling budget. D. Cash budget. E. Income statement. 89.Which of the following accounts would appear on a budgeted balance sheet?    A. Income tax expense. B. Accounts receivable. C. Sales commissions. […]

              Essay Questions   79. Accounting terminology Listed below are seven technical accounting terms introduced or emphasized in this chapter:    Each of the following statements may (or may not) describe one of these technical terms. In the space provided beside each statement, indicate the accounting term described, or answer “None” if the statement does not correctly describe any of […]

    71. Which of the following entities would probably use a process costing system? A. A custom boat builderB. A custom furniture manufacturerC. A one of a kind jewelry creatorD. An oil refinery.   72. Which of the following is not a characteristic of a process cost system? A. Manufacturing costs are grouped by departments.B. The system may use several Work-in-Process accounts.C. The system measures costs for each completed job.D. The system allocates costs between completed […]

  61. During the year Leyland Company completed 1,300 units of product. Ending inventory consisted of 400 units that were 50% complete. The total dollar cost associated with production of inventory was $45,000. The cost per equivalent whole unit would be which of the following? (Round all answers to the nearest whole penny.)  A. $26.00 B. $30.00 C. $34.61 D. $41.91 62. Morton Company uses process costing. The following information was […]

    51.Which of the following is not a provision of the Sarbanes-Oxley Act of 2002?    A. The chief executive officer and the chief financial officer are jointly responsible for establishment and enforcement of internal controls.   B. Companies are required to report on the effectiveness of their internal controls.   C. The company’s external auditor is charged with the ultimate responsibility for the accuracy of the company’s […]