Chesapeake Co. manufactures fine dining tables. During the most productive month of the year, 3,500 tables were manufactured at a total cost of $84,400. In its slowest month, the company made 1,100 tables at a cost of $46,000. Using the high-low method of cost estimation, total fixed costs in August for Chesapeake are:
Question 1 options:
| |
$56000 |
| |
$28400 |
| |
$17000 |
| |
Cannot be determined from data given |
Save
Question 2 (5 points)
What is the break-even sales (units) for Morgana Video Edits LLC if fixed costs are $250,000, the unit selling price is $105, and the unit variable costs are $65,
Question 2 options:
| |
3846 units |
| |
2381 units |
| |
10000 units |
| |
6250 units |
Save
Question 3 (5 points)
What is the amount of sales required by Morgana Video Edits LLC to realize an operating income of $200,000 if fixed costs are $1,400,000, the unit selling price is $220, and the unit variable costs are $120,
Question 3 options:
| |
14000 units |
| |
12000 units |
| |
16000 units |
| |
13333 units |
Save
Question 4 (5 points)
What is the break-even sales (units) required by Morgana Video Edits LLC if fixed costs are reduced by $40,000 if fixed costs are $300,000, the unit selling price is $25, and the unit variable costs are $20,
Question 4 options:
| |
60000 units |
| |
52000 units |
| |
62000 units |
| |
64000 units |
Save
Question 5 (5 points)
If Morgana Video Edits LLC’s sales are $425,000, variable costs are 63% of sales, and operating income is $50,000, what is Morgana’s contribution margin ratio?
Question 5 options:
Save
Question 6 (5 points)
What is the amount of working capital for Elise Catering Services Based on the following data,?
| Accounts payable |
$ 30,000 |
| Accounts receivable |
65,000 |
| Accrued liabilities |
7,000 |
| Cash |
20,000 |
| Intangible assets |
40,000 |
| Inventory |
72,000 |
| Long-term investments |
100,000 |
| Long-term liabilities |
75,000 |
| Marketable securities |
36,000 |
| Notes payable (short-term) |
20,000 |
| Property, plant, and equipment |
625,000 |
| Prepaid expenses |
2,000 |
Question 6 options:
| |
$238000 |
| |
$138000 |
| |
$178000 |
| |
$64000 |
Save
Question 7 (5 points)
What is the quick ratio for Elise Catering Services, rounded to one decimal point based on the following data
| Accounts payable |
$ 30,000 |
| Accounts receivable |
65,000 |
| Accrued liabilities |
7,000 |
| Cash |
20,000 |
| Intangible assets |
40,000 |
| Inventory |
72,000 |
| Long-term investments |
100,000 |
| Long-term liabilities |
75,000 |
| Marketable securities |
36,000 |
| Notes payable (short-term) |
20,000 |
| Property, plant, and equipment |
625,000 |
| Prepaid expenses |
2,000 |
Question 7 options:
Save
Question 8 (5 points)
What is the accounts receivable turnover for Elise Catering Services based on the following data for the current year?
| Net sales on account during year |
$ 400,000 |
| Cost of merchandise sold during year |
300,000 |
| Accounts receivable, beginning of year |
45,000 |
| Accounts receivable, end of year |
35,000 |
| Inventory, beginning of year |
90,000 |
| Inventory, end of year |
110,000 |
Question 8 options:
Save
Question 9 (5 points)
. Brielle Financial Services reports on its balance sheets at the end of each of the first two years of operations the following:
| |
2006 |
2005 |
| Total current assets |
$600,000 |
$560,000 |
| Total investments |
60,000 |
40,000 |
| Total property, plant, and equipment |
900,000 |
700,000 |
| Total current liabilities |
150,000 |
80,000 |
| Total long-term liabilities |
350,000 |
250,000 |
| Preferred 9% stock, $100 par |
100,000 |
100,000 |
| Common stock, $10 par |
600,000 |
600,000 |
| Paid-in capital in excess of par-common stock |
60,000 |
60,000 |
| Retained earnings |
325,000 |
210,000 |
If net income is $115,000 and interest expense is $30,000 for 2006, what are the earnings per share on common stock for 2006, (round to two decimal places)?
Question 9 options:
Save
Question 10 (5 points)
Brielle Financial Services reports the following:
| |
2006 |
| Market price per share of common stock |
$25.00 |
| Earnings per share on common stock |
1.25 |
Which of the following statements is correct?
Question 10 options:
| |
The price-earnings ratio is 20 and a share of common stock was selling for 20 times the amount of earnings per share at the end of 2006. |
| |
The price-earnings ratio is 5.0% and a share of common stock was selling for 5.0% more than the amount of earnings per share at the end of 2006. |
| |
The price-earnings ratio is 10 and a share of common stock was selling for 125 times the amount of earnings per share at the end of 2006. |
| |
The market price per share and the earnings per share are not statistically related to each other. |
Save
Question 11 (5 points)
Trang Dry Cleaners reports net income on the income statement for the current year in the amount of $275,000. Depreciation recorded on fixed assets and amortization of patents for the year were $40,000 and $9,000, respectively. Balances of current asset and current liability accounts at the end and at the beginning of the year are as follows:
| |
End |
Beginning |
| Cash |
$ 50,000 |
$ 60,000 |
| Accounts receivable |
112,000 |
108,000 |
| Inventories |
105,000 |
93,000 |
| Prepaid expenses |
4,500 |
6,500 |
| Accounts payable (merchandise creditors) |
75,000 |
89,000 |
What is the amount of cash flows from operating activities reported on the statement of cash flows prepared by the indirect method by Trang Cleaners’ accountants?
Question 11 options:
| |
$198000 |
| |
$324000 |
| |
$352000 |
| |
$296000 |
Save
Question 12 (5 points)
Trang Dry Cleaners owns a building with a book value of $ 45,000 is sold for $50,000 cash. Using the indirect method, this transaction should be shown on the statement of cash flows as follows:
Question 12 options:
| |
| an increase of $45,000 from investing activities |
|
| |
| |
an increase of $50,000 from investing activities and a deduction from net income of $5,000 |
|
| |
an increase of $50,000 from investing activities |
| |
| |
an increase of $45,000 from investing activities and an addition to net income of $5,000 |
|
Save
Question 13 (5 points)
Trang Dry Cleaners sold Equipment with an original cost of $50,000 and accumulated depreciation of $20,000 at a loss of $7,000. As a result of this transaction, Trang’scash would
Question 13 options:
| |
an increase of $23000 |
| |
a decrease of $7000 |
| |
an increase of $43000 |
| |
an increase of $30000 |
Save
Question 14 (5 points)
Vatsala Bakery Group reports the following: The cost of merchandise sold during the year was $50,000. Merchandise inventories were $12,500 and $10,500 at the beginning and end of the year, respectively. Accounts payable were $6,000 and $5,000 at the beginning and end of the year, respectively. Using the direct method of reporting cash flows from operating activities, cash payments by Vatsala for merchandise total
Question 14 options:
| |
$49000 |
| |
$47000 |
| |
$51000 |
| |
$53000 |
Save
Question 15 (5 points)
Vatsala Bakery Group reports the following information: Sales for the year were $600,000. Accounts receivable were $100,000 and $80,000 at the beginning and end of the year. Cash received from customers to be reported on the cash flow statement using the direct method is
Question 15 options:
| |
$700000 |
| |
$600000 |
| |
580000 |
| |
620000 |
Save
Question 16 (5 points
Venkat Manufacturing forecasts that total overhead cost for the current year will be $12,000,000 and that total machine hours will be 200,000 hours. Year to date, the actual overhead is $8,000,000 and the actual machine hours are 100,000 hours. If Venkat Manufacturing uses a predetermined overhead rate based on machine hours for applying overhead, what is that overhead rate?
Question 16 options:
| |
$80 per machine hour |
| |
$120 per machine hour |
| |
$40 per machine hour |
| |
$60 per machine hour |
Save
Question 17 (5 points)
VenkatManufacturing forecasts that total overhead for the current year will be $12,000,000 and that total machine hours will be 200,000 hours. Year to date, the actual overhead is $8,000,000 and the actual machine hours are 100,000 hours. If Venkat Manufacturing uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date) the overhead is over/under applied by?
Question 17 options:
| |
$2 million overapplied |
| |
$2 million underapplied |
| |
$4 million overapplied |
| |
$4 million underapplied |
Save
Question 18 (5 points)
Norman Geological Services is to receive $30,000 in two years, at 12% compounded annually, What is the PV of this money (rounded to nearest dollar)
Question 18 options:
| |
$23916 |
| |
$37632 |
| |
$23700 |
| |
$30000 |
Save
Question 19 (5 points)
What is the inventory turnover cost for Brielle Financial Service based on the following data for the current year?
| Net sales on account during year |
$ 500,000 |
| Cost of merchandise sold during year |
330,000 |
| Accounts receivable, beginning of year |
45,000 |
| Accounts receivable, end of year |
35,000 |
| Inventory, beginning of year |
90,000 |
| Inventory, end of year |
110,000 |
Question 19 options:
Save
Question 20 (5 points)
20 Venkat Manufacturing during the period incurs labor costs on account amounted to $225,000 including $195,000 for production orders and $30,000 for general factory use. In addition, factory overhead applied to production was $17,000. From the following, select the entry Venkat’s accountants will use to record the actual factory overhead costs incurred.
Question 20 options:
| |
Accounts Payable 30,000
Factory Overhead 30,000
|
| |
Factory Overhead 17,000
Accounts Payable 17000
|
| |
Work in Process 30,000
Factory Overhead 30,000
|
| |
Factory Overhead 30,000
Wages Payable 30,000
|
