121. Assume in analyzing alternative proposals that Proposal F has a useful life of six years and Proposal J has a useful life of nine years. What is one widely used method that makes the proposals comparable?  A. Ignore the fact that Proposal F has a useful life of six years and treat it as if it has a useful life of nine years. B. Adjust […]

  141.Ryan Company deposits all cash receipts on the day they are received and makes all cash payments by check. Ryan’s June bank statement shows $18,361 on deposit in the bank. Ryan’s comparison of the bank statement to its cash account revealed the following:  Deposit in transit1,450 Outstanding checks837 Additionally, a $29 check written and recorded by the company correctly was recorded by the bank […]

    111. A cost-volume-profit chart is also known as a(n)A.  Operating profit chart.B.  Operating leverage chart.C.  Break-even chart.D.  Margin of safety chart.E.  Sales chart.   Reference: 18_04 A firm sells two products, A and B. For every unit of A the firm sells, two units of B are sold. The firm’s total fixed costs are $1,612,000. Selling prices and cost information for both products […]

  203. Use the following information to prepare the adjusted trial balance for Bella’s Beauty Salon. Bella’s Beauty Salon’s unadjusted trial balance for the current year follows:     BELLA’S BEAUTY SALON Trial Balance December 31 Cash $  4,200   Prepaid insurance 1,480   Shop supplies 990   Shop equipment 3,860   Accumulated depreciation – shop equipment   $    770 Building 57,500   Accumulated depreciation – building […]

    86. The following data is given for the Harry Company:  Budgeted production 26,000 units Actual production 27,500 units Materials:     Standard price per ounce $6.50   Standard ounces per completed unit 8   Actual ounces purchased and used in production 228,000   Actual price paid for materials $1,504,800 Labor:     Standard hourly labor rate $22 per hour   Standard hours allowed per completed unit 6.6   Actual labor hours […]

  21) What is the cost effect of the growth component for direct materials? A) $135,000 U B) $450,000 F C) $450,000 U D) $135,000 F 22) What is the cost effect of the growth component for conversion costs? A) $12,500 U B) $0 C) $90,000 U D) $90,000 F   23) Overall, was Crynton’s strategy successful in 2015? A) Yes, because total revenues increased […]

  SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. 71) Valley West Amusement Park is evaluating its ticket prices. It is open during the summer months for 15 weeks. The following information pertains to last year’s tourist season. Costs are expected to remain the same for this year.   Average tourists per day on Friday thru Tuesday2,500 […]

  122.Minstrel Manufacturing uses a job order costing system. During one month Minstrel purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. Minstrel incurred a factory payroll of $150,000, paid in cash, of which $40,000 was indirect labor. Minstrel uses a predetermined overhead application rate of 150% of direct labor cost. Minstrel’s beginning and ending Work […]

  53.Cleveland Company manufactures two products, Product A-33 and Product C-17. Product C-17 is the more complex of the two products, requiring 1.5 hours of direct labor per unit to manufacture compared to 1.0 hour of direct labor time for Product A-33. Product C-17 is produced on an automated production line. The company estimated it would incur $510,000 in manufacturing overhead costs and produce 10,000 […]

  157. West Company declared a $0.50 per share cash dividend. The company has 190,000 shares issued, and 10,000 shares in treasury stock. The journal entry to record the payment of the dividend is: A. Debit Retained Earnings $90,000; credit Common Dividends Payable $90,000. B. Debit Common Dividends Payable $95,000; credit Cash $95,000.C. Debit Retained Earnings $5,000; credit Common Dividends Payable $5,000.D. Debit Common Dividends Payable $90,000; credit Cash $90,000. E. Debit […]