Question
48. Barnes Company purchased $72,000 of 9.0% bonds at par. The bonds mature in six years and are a held-to-maturity security. Which of the following
48. Barnes Company purchased $72,000 of 9.0% bonds at par. The bonds mature in six years and are a held-to-maturity security. Which of the following is the correct journal entry to record the receipt of the semiannual interest payment?
Multiple Choice
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debit Cash, $6,480; credit Unrealized Gain-Equity, $6,480.
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debit Cash, $6,480; credit Long-Term InvestmentsHTM, $6,480.
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debit Cash, $3,240; credit Interest Revenue, $3,240.
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debit Unrealized Gain-Equity, $3,240; credit Cash, $3,240.
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debt Cash, $3,240; credit Long-Term InvestmentsHTM, $3,240.
50. Using the information below, calculate the cost of goods manufactured for the period:
Beginning Raw Materials Inventory | $ | 33,000 | |
Ending Raw Materials Inventory | 24,600 | ||
Beginning Work in Process Inventory | 63,000 | ||
Ending Work in Process Inventory | 72,000 | ||
Beginning Finished Goods Inventory | 92,000 | ||
Ending Finished Goods Inventory | 75,000 | ||
Cost of Goods Sold for the period | 548,000 | ||
Sales revenues for the period | 1,262,000 | ||
Operating expenses for the period | 240,000 | ||
Multiple Choice
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$540,000.
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$531,000.
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$565,000.
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$557,000.
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$573,200.
55. Alliance Companys budgets production of 29,000 units in January and 33,000 units in the February. Each finished unit requires 4 pounds of raw material K that costs $3.00 per pound. Each months ending raw materials inventory should equal 30% of the following months budgeted materials. The January 1 inventory for this material is 34,800 pounds. What is the budgeted materials cost for January?
Multiple Choice
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$348,000.
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$466,800.
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$223,200.
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$243,600.
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$362,400.
62. Wichita Industries' sales are 20% cash and 80% on credit. Credit sales are collected as follows: 30% in the month of sale, 50% in the next month, and 20% in the following month. On December 31, the accounts receivable balance includes $23,000 from November sales and $35,000 from December sales. Assume that total sales for January are budgeted to be $61,000. What are the expected cash receipts for January from the current and past sales?
Multiple Choice
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$62,640.
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$26,840.
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$56,440.
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$74,840.
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$67,340.
64. Based on a predicted level of production and sales of 26,000 units, a company anticipates total variable costs of $80,600, fixed costs of $39,000, and operating income of $104,780. Based on this information, the budgeted amount of operating income for 24,000 units would be:
Multiple Choice
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$207,120.
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$132,720.
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$93,720.
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$13,120.
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$74,400.
68. Cahuilla Corporation predicts the following sales in units for the coming four months:
April | May | June | July | |||||
Sales in Units | 430 | 470 | 490 | 430 | ||||
Each month's ending Finished Goods Inventory should be 40% of the next month's sales. March 31 Finished Goods inventory is 172 units. A finished unit requires 5 pounds of direct material B at a cost of $3.00 per pound. The March 31 Raw Materials Inventory has 280 pounds of B. Each month's ending Raw Materials Inventory should be 30% of the following month's production needs. The budgeted purchases of pounds of direct material B during May should be:
Multiple Choice
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466 lbs.
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3,089 lbs.
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2,372 lbs.
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1,673 lbs.
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478 lbs.
90. Georgia, Inc. has collected the following data on one of its products. The actual cost of the direct materials used is:
Direct materials standard (4 lbs @ $2/lb) | $8 | per finished unit |
Total direct materials cost varianceunfavorable | $15,250 | |
Actual direct materials used | 100,000 | lbs. |
Actual finished units produced | 20,000 | units |
Multiple Choice
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$175,250.
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$160,000.
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$100,000.
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$144,750.
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$216,250.
96. A company's flexible budget for 13,000 units of production showed sales, $65,000; variable costs, $32,500; and fixed costs, $17,000. The sales expected if the company produces and sells 17,000 units is (Do not round intermediate calculations):
Multiple Choice
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$20,269.
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$85,000.
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$38,750.
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$3,269.
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$15,500.
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