21) Fine Suiting Company sells shirts for men and boys. The average selling price and variable cost for each product are as follows:   Men’sBoys’ Selling Price$25.00Selling Price$24.00 Variable Cost$15.40Variable Cost$16.00   Fixed costs are $35,200.   Required: a.What is the breakeven point in units for each type of shirt, assuming the sales mix is 1:1? b.What is the operating leverage, assuming the sales […]

    126. On April 12, Hong Company agrees to accept a 60-day, 10%, $4,500 note from Indigo Company to extend the due date on an overdue account. What is the journal entry needed to record the payment of the note by Indigo Company on the maturity date?  A. Debit Notes Payable $4,500; debit Interest Expense $75; credit Cash $4,575. B. Debit Notes Payable $4,500; credit Interest Expense […]

    39. When a job is completed:  A. Cost of goods sold is debited. B. Work-in-process inventory is debited. C. Finished goods inventory is credited. D. None of the above.     40. Which of the following is a characteristic of manufacturing overhead in a job order cost system?  A. It is indirectly traceable to specific jobs or units. B. It includes the cost of all labor relating to manufacturing operations. C. It […]

  20) Aunt Ethel’s Fancy Cookie Company manufactures and sells three flavors of cookies: Macaroon, Sugar, and Buttercream. The batch size for the cookies is limited to 1,000 cookies based on the size of the ovens and cookie molds owned by the company. Based on budgetary projections, the information listed below is available:   MacaroonSugar     Buttercream Projected sales in units500,000800,000600,000   PER UNIT data: Selling […]

  11) The company uses the periodic inventory system and the voucher system. If the net method is applied, the purchase of $7,000 of merchandise with terms 4/15, n/60 is recorded by: A) debit Cash $7,000; credit Accounts Payable $7,000. B) debit Accounts Payable $7,000; credit Purchases $7,000. C) debit Purchases $6,720; credit Accounts Payable $6,720. D) debit Purchases $6,720; credit Vouchers Payable $6,720. 12) […]

  81. Which of the following accounts would most likely not require an adjusting entry in the future?  A. Unearned subscriptions revenue B. Office supplies C. Utilities payable D. Prepaid rent 82. On December 31, 2011, The Bates Company’s revenues total $300,000 and expenses total $160,000 before consideration of the following: ? Accrued wages total $11,000; ? Accrued revenues total $36,000; ? Depreciation expense is $17,000; ? Rental revenue of $9,000 […]

  61) ______ A) improve product design. B) eliminate activities that add value but are not cost drivers. C) generate profits. D) improve operations and processes. E) satisfy customers. 62) Which of the following methods of dealing with under allocated or over allocated indirect costs are compatible with ABC systems? 62) ______ A) adjusted assignment approach B) cost of goods sold method C) homogeneous cost […]

    41. A detailed system of accounts allows the preparer of financial statements to decompose, or __________, each transaction to convey information about the effects of the transaction.  A. mixup B. disaggregate C. aggregate D. share E. combine   42. To maintain balance sheet equality, it is necessary to report every event and transaction in a dual manner.  If a transaction results in an increase in a Liability account, then which […]

    126. Office supplies purchased by Ari’s Alarm Service on account were returned.  Which of the following entries for Ari’s Alarm Service records this transaction?  A. Cash, debit; Office Supplies, credit B. Office Supplies, debit; Accounts Receivable, credit C. Accounts Payable, debit; Office Supplies, credit D. Office Supplies, debit; Accounts Payable, credit   127. Cash was paid by Ari’s Alarm Service to creditors on account.  Which of the following entries […]

  147. On January 1 of the current year, Townsend Co. commenced operations. It operated its plant at 100% of capacity during January. The following data summarized the results for January:    Units   Production 50,000 Sales ($18 per unit) 42,000 Inventory, January 31   8,000     Manufacturing costs:      Variable $575,000    Fixed     80,000       Total $655,000     Selling and administrative expenses: […]