73.Refer to the information above. The journal entry to record the cost of direct labor used in this period includes:    A. A debit to Work in Process Inventory of $2,880.   B. A debit to Work in Process Inventory of $2,560.   C. A credit to Direct Labor Rate Variance of $320.   D. A credit to Direct Labor Rate Variance of $360.       74.The […]

    101. Kristin’s Boutiques has identified the following items for possible inclusion in its December 31, 2010 inventory.  Which of the following would not be included  in the year end inventory?  A. Merchandise purchased FOB shipping point was picked up by the freight company but had still not arrived at Kristin’s Boutique as of December 31, 2010. B. Kristin has in its warehouse merchandise on consignment from […]

11) If the shipping terms are FOB shipping point and the freight bill is $200, the purchaser, using a periodic inventory system would record payment of the freight with a debit to: A) Inventory and credit to Cash for $200. B) Freight In and a credit to Cash for $200. C) Inventory and credit to Purchases Discounts for $200. D) Purchases Discounts and credit to […]

  11) Which of the following is generally covered in an engagement letter? A) research plan B) deadlines given by the court C) evidence required to be gathered D) right to terminate 12) Which of the following is true of an engagement letter? A) It is addressed to the expert, to establish an agent relationship. B) It cannot be amended once signed by both parties. […]

  11) Which of the following statements is true in regard to the cause-and-effect relationship between allocated joint costs and individual products? A) A high individual product value results in a high level of joint costs. B) A low individual product value results in a low level of joint costs. C) A high individual product value results in a low level of joint costs. D) […]

  75.A subsidiary ledger:    A. Includes transactions not covered by special journals. B. Is a listing of all of the accounts of a business. C. Is a listing of individual accounts and amounts with a common characteristic. D. Is also called a general ledger. E. Is also called a special journal. 76.A subsidiary ledger that contains a separate account for each supplier (creditor) to the company is a(n):    A. Controlling account. […]

  72.A company has fixed costs of $320,000 and a contribution margin per unit of $15. If the firm wants to earn a target $40,000 pretax income, how many units must be sold (rounded to the nearest whole unit)?    A. 24,000. B. 21,333. C. 18,666. D. 2,667. E. 20,000. 73.A company has fixed costs of $270,000, a unit contribution margin of $14, and a contribution margin ratio of 55%. If […]

108.Use this information to answer the following question.   The following totals for the month of November were taken from the payroll register of Levine Company:   Salaries expense $12,000 Social security and Medicare taxes withheld 550 Income taxes withheld 2,500 Medical insurance deductions 250 Life insurance deductions 200 Salaries subject to federal and state unemployment taxes of 6.2 percent 4,000   The entry to […]

  130.All of the following statements regarding accounting for trading securities under U.S. GAAP are true except:     A. The entire portfolio of trading securities is reported at is fair value. B. An unrealized gain or loss from a change in fair value is reported on the income statement. C. An unrealized gain or loss is recorded with an adjusting entry when the securities are sold. D. An unrealized […]

  31) Lynn Valley Corporation currently manufactures a subassembly for its main product. The costs per unit are as follows:   Direct materials $2.00 Direct labour 20.00 Variable overhead 10.00 Fixed overhead 16.00   Reliance Corp has contacted Lynn Valley with an offer to sell them 5,000 of the subassemblies for $44.00 each. Lynn Valley will eliminate $50,000 of fixed overhead if it accepts the […]