144.Masco, Short, and Henderson who are partners in the MSH Company share income and loss in a 2:2:1 ratio. They plan to liquidate their partnership. At liquidation, their balance sheet appears as follows. Prepare journal entries for (a) the sale of land and equipment sold as a package for $500,000, (b) the allocation of the gain or loss, (c) the payment of the liabilities, […]

  61. A job cost sheet includes:  A. Direct materials, direct labor, operating costs. B. Direct materials, overhead, administrative costs. C. Direct labor, overhead, selling costs. D. Direct material, direct labor, overhead. E. Direct materials, direct labor, selling costs. 62. The Goods in Process Inventory account of a manufacturing company that uses an overhead rate based on direct labor cost has a $4,400 debit balance after all posting is completed. The cost […]

  51) Which of the following criteria should be used to evaluate management according to critics of absorption costing? A) the extent to which inventory production matches demand B) the extent to which financial performance measures are used C) the extent to which operating income is increased in the short run D) the extent to which production quotas are exceeded E) We should rely only […]

  Multiple Choice Questions    31.Which of the following is the primary objective of an income statement?    A.Providing managers with detailed information about where the enterprise stands at a specific date.   B.Providing users outside the business organization with information about the company’s financial position and operating results.   C.Reporting to the Internal Revenue Service the company’s taxable income.   D.Indicating to investors in a […]

    61. A company expects to produce and sell 7,000 units of a single product. The following additional company information is available:  Variable costs (per unit)   Production costs $20 Nonproduction costs $3 Fixed costs (in total)   Overhead $175,000 Nonproduction $14,000 Compute this company’s total cost per unit.A.  $23B.  $45C.  $27D.  $50E.  $5     62. A company expects to produce and sell […]

    127.Owning a patent:  A. Gives the owner the exclusive right to publish and sell a musical or literary work during the life of the creator plus 70 years. B. Gives the owner exclusive rights to manufacture and sell a patented item or to use a process for 20 years. C. Gives its owner an exclusive right to manufacture and sell a device or to use a […]

  14) A machine was purchased for $100,000 in 2011 and used for four years, during which $60,000 of depreciation accumulated. The machine was then sold for $60,000 cash. What is the gain or loss on this transaction? Assume depreciation is up to date at the time of the sale.   15) A machine was purchased for $100,000 in 2011 and used for four years, […]

    91. Mandy Corporation sells a single product. Budgeted sales for the year are anticipated to be 640,000 units, estimated beginning inventory is 98,000 units, and desired ending inventory is 80,000 units. The quantities of direct materials expected to be used for each unit of finished product are given below.Material A   .50 lb. per unit @ $ .60 per poundMaterial B 1.00 lb. per unit […]

  41.Gain contingencies a. should be accrued when probable and the amount can be reasonably estimated. b. are reported as revenues on the income statement. c. should be accrued for anticipated lottery winnings. d. are almost never accrued and are rarely disclosed. 42.A company has a decreasing current ratio. Creditors should be concerned a.with long-term solvency. b.about the company’s ability to pay current debts as […]

  102.The amount by which the overhead applied to jobs during a period exceeds the overhead incurred during the period is known as:    A. Adjusted overhead. B. Estimated overhead. C. Predetermined overhead. D. Underapplied overhead. E. Overapplied overhead. 103.The amount by which overhead incurred during a period exceeds the overhead applied to jobs is:    A. Balanced overhead. B. Predetermined overhead. C. Actual overhead. D. Underapplied overhead. E. Overapplied overhead. 104.If a company applies overhead to […]