Multiple Choice Question 104

Marigold Corp.'s accounting records reflect the following inventories:

Dec. 31, 2020

Dec. 31, 2019

Raw materials inventory

$310000

$260000

Work in process inventory

300000

160000

Finished goods inventory

190000

150000

In 2020, $1020000 of raw materials were purchased, direct labor costs amounted to $768200, and manufacturing overhead incurred was $688000.

If Marigold Corp.'s cost of goods manufactured for 2020 amounted to $2286200, its cost of goods sold for the year is

1. 2326200
2. 2396200
3. 2136200
4. 2246200

Multiple Choice Question 110

Waterway Industries Its accounting records reflect the following inventories:

Dec. 31, 2019

Dec. 31, 2020

Raw materials inventory

$ 80000

$ 64000

Work in process inventory

104000

116000

Finished goods inventory

100000

92000

During 2020, Waterway purchased $1470000 of raw materials, incurred direct labor costs of $250000, and incurred manufacturing overhead totaling $160000.

Assume Waterway's cost of goods manufactured for 2020 amounted to $1884000. How much would it report as the cost of goods sold for the year?

1. $1892000
2. $1984000
3. $1876000
4. $1792000

Multiple Choice Question 122

Assuming that the total manufacturing costs are $3580000, compute the cost of goods manufactured using the information below.

Raw materials inventory, January 1

$ 30000

Raw materials inventory, December 31

60000

Work in process, January 1

27000

Work in process, December 31

18000

Finished goods, January 1

60000

Finished goods, December 31

48000

Raw materials purchases

1920000

Direct labor

890000

Factory utilities

225000

Indirect labor

75000

Factory depreciation

500000

Operating expenses

630000

$3601000.

$3322000.

$3571000.

$3589000.

Exercise 166 a-c (Part Level Submission)

Kennedy Company reports the following costs and expenses in May.

Factory utilities

$

16,500

Depreciation on factory equipment

12,650

Depreciation on delivery trucks

3,800

Indirect factory labor

48,900

Indirect materials

70,800

Direct materials used

157,600

Factory manager's salary

8,000

Direct labor

79,100

Sales salaries

48,400

Property taxes on factory building

2,500

Repairs to office equipment

1,300

Factory repairs

2,000

Advertising

23,000

Office supplies used

4,640

(a)

Determine the total amount of manufacturing overhead.

Manufacturing overhead

$

B. Product Cost $

C. Period Cost $

Exercise 173 a-b (Part Level Submission)

Peters Manufacturing Company has the following data at June 30, 2019:

Raw materials inventory, June 1

$

13,800

Work in process inventory, June 1

18,100

Finished goods inventory, June 1

43,500

Total manufacturing costs

430,000

Sales

580,000

Work in process inventory, June 30

30,400

Finished goods inventory, June 30

55,200

Raw materials inventory, June 30

18,000

(a)

Prepare an income statement through gross profit for the month of June.

Exercise 175 a-b (Part Level Submission)

The following information is available for Elliot Company.

January 1, 2019

2019

December 31, 2019

Raw materials inventory

$26,000

$30,000

Work in process inventory

18,500

22,200

Finished goods inventory

30,000

21,000

Materials purchased

$170,000

Direct labor

230,000

Manufacturing overhead

180,000

Sales

800,000

B. Prepare an income statement through gross profit.

Multiple Choice Question 121

Assuming the cost of direct materials used is $1830000, compute the total manufacturing costs using the information below.

Raw materials inventory, January 1

$ 30000

Raw materials inventory, December 31

60000

Work in process, January 1

27000

Work in process, December 31

18000

Finished goods, January 1

60000

Finished goods, December 31

48000

Raw materials purchases

1860000

Direct labor

890000

Factory utilities

225000

Indirect labor

75000

Factory depreciation

500000

Operating expenses

630000

$4150000.

$3520000.

$3529000.

$3250000.

Multiple Choice Question 97

Concord Corporation has $28000 of ending finished goods inventory as of December 31, 2019. If beginning finished goods inventory was $22000 and cost of goods sold was $57000, how much would Concord report for cost of goods manufactured?

$85000

$22000

$63000

$51000

Multiple Choice Question 145

Sheridan Inc. has an investment in available-for-sale securities of $77000. This investment experienced an unrealized loss of $6200 during the current year. Assuming a 35% tax rate, the effect of this loss on comprehensive income will be

$4030 decrease.

$26950 decrease.

no effect.

$77000 increase.

Multiple Choice Question 139

The following financial statement information is available for Bonita Corporation:

2020

2019

Stockholders' equity - common

$320000

$280000

Net sales

780000

700000

Cost of goods sold

380000

370000

Net income

100000

80000

Inc tax expense

60000

20000

Interest expense

30000

30000

Dividends paid to preferred stockholders

40000

10000

Dividends paid to common stockholders

30000

8000

The return on common stockholders' equity for 2020 is

31.3%.

16.7%.

20.0%.

18.8%

Multiple Choice Question 121

The following information pertains to Crane Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.

Assets

Cash and short-term investments

$ 41000

Accounts receivable (net)

25000

Inventory

20000

Property, plant and equipment (net)

203000

Total Assets

$289000

Liabilities and Stockholders' Equity

Current liabilities

$ 48000

Long-term liabilities

79000

Stockholders' equitycommon

162000

Total Liabilities and Stockholders' Equity

$289000

Income Statement

Sales (net)

$ 123000

Cost of goods sold

65000

Gross profit

58000

Operating expenses

31000

Net income

$27000

Number of shares of common stock

4000

Market price of common stock

$22

Dividends per share

0.60

What is the inventory turnover for Crane?

0.31 times

3.66 times

7.15 times

3.25 times

Multiple Choice Question 61

Vaughn, Inc. has the following income statement (in millions):

Vaughn, Inc.

Income Statement

For the Year Ended December 31, 2019

Net Sales

$300

Cost of Goods Sold

189.0

Gross Profit

111.0

Operating Expenses

50

Net Income

$61.0

Using vertical analysis, what percentage is assigned to Cost of Goods Sold?

37%

63%

100%

None of these answer choices are correct

Multiple Choice Question 132

During the year, Salaries and Wages Payable decreased by $5300. If Salaries and Wages Expense amounted to $175400 for the year, the cash paid to employees (including deductions from gross pay) is

$180700.

$185400.

$175400.

$170100.

Multiple Choice Question 78

Bonita Company reported net income of $108000 for the year ended December 31, 2019. During the year, inventories decreased by $15400, accounts payable decreased by $19500, depreciation expense was $18500 and a gain on disposal of equipment of $8600 was recorded. Net cash provided by operating activities in 2019 using the indirect method was

$122400.

$123400.

$106200.

$113800.

Multiple Choice Question 67

Coronado Company purchased treasury stock with a cost of $15600 during 2019. During the year, the company paid dividends of $20900 and issued bonds payable for proceeds of $854000. Cash flows from financing activities for 2019 total

$817500 net cash inflow.

$848700 net cash inflow.

$833100 net cash inflow.

$854000 net cash outflow.

Multiple Choice Question 91

Concord Inc. earns $460000 and pays cash dividends of $150000 during 2020. Pharoah Corporation owns 83220 of the 219000 outstanding shares of Concord Inc.

How much revenue from investment should Pharoah report in 2020?

$57000

$174800

$231800

$117800

Multiple Choice Question 79

Which of the following is the correct matching concerning an investor's influence on the operations and financial affairs of an investee?

% of Investor Ownership

Presumed Influence

Less than 20%

Short-term

Between 20%-50%

Controlling

Between 20%-50%

Significant

More than 50%

Long-term

Multiple Choice Question 56

Swifty Company had these transactions pertaining to stock investments:

Feb. 1 Purchased 2100 shares of Pearl Company (10%) for $53550 cash.

June 1 Received cash dividends of $2 per share on Pearl stock.

Oct. 1 Sold 1170 shares of Pearl stock for $31590.

The entry to record the purchase of the Pearl stock would include a

credit to Cash for $48195.

debit to Investment Expense for $5355.

debit to Stock Investments for $48195.

debit to Stock Investments for $53550.

Multiple Choice Question 143

On January 1, Vaughn Manufacturing issued $1900000, 13%, 5-year bonds with interest payable on January 1. The bonds sold for $2087226. The market rate of interest for these bonds was 11%. On December 31, using the effective-interest method, the debit entry to Interest Expense is for:

$271339.

$229595.

$209000.

$247000.

Multiple Choice Question 119

Presented here is a partial amortization schedule for Vaughn Manufacturing who sold $290000, six year 10% bonds on January 1, 2019 for $296000 and uses annual straight-line amortization.

BOND AMORTIZATION SCHEDULE

Interest Period

Interest Paid

Interest Expense

Premium Amortization

Unamortized Premium

Bond Carrying Value

January 1, 2019

$6000

$296000

January 1, 2020

(i)

(ii)

(iii)

(iv)

(v)

Which of the following amounts should be shown in cell (iii)?

$5000

$1000

$600

$6000

Multiple Choice Question 126

Coronado Industries reported total manufacturing costs of $450000, manufacturing overhead totaling $68000, and direct materials totaling $86000. How much is direct labor cost?

Multiple Choice Question 100

A company had net income of $209800. Depreciation expense is $27300. During the year, Accounts Receivable and Inventory increased $17300 and $42300, respectively. Prepaid Expenses and Accounts Payable decreased $4900 and $6400, respectively. There was also a loss on the sale of equipment of $2400. How much cash was provided by operating activities?

$271000

$173600

$240700

$178400

Multiple Choice Question 131

On January 2, Angle Corporation acquired 40% of the outstanding common stock of Bobbe Company for $550,000. For the year ended December 31, Bobbe reported net income of $90,000 and paid cash dividends of $30,000 on its common stock. At December 31, the carrying value of Angle's investment in Bobbe under the equity method is

$538,000.

$550,000.

$586,000.

$574,000.

Multiple Choice Question 127

Which of the following statements about retained earnings restrictions is incorrect?

Many states require a corporation to restrict retained earnings for the cost of treasury stock purchased.

Long-term debt contracts may impose a restriction on retained earnings as a condition for the loan.

The board of directors of a corporation may voluntarily create retained earnings restrictions for specific purposes.

Retained earnings restrictions are generally disclosed through a journal entry on the books of a company.

Multiple Choice Question 109

Ellis Corporation had net income of $500,000 and paid dividends of $100,000 to common stockholders and $20,000 to preferred stockholders in 2020. Ellis Corporation's common stockholders' equity at the beginning and end of 2020 was $1,740,000 and $2,260,000, respectively. There are 400,000 weighted-average shares of common stock outstanding.

Ellis Corporation's earnings per share for 2017 was

$1.25.

$6.20.

$1.20.

$5.00.

Multiple Choice Question 36

The effect of the declaration of a cash dividend by the board of directors is to

Increase

Decrease

Assets

Liabilities

Liabilities

Assets

Liabilities

Stockholders' equity

Stockholders' equity

Assets

Multiple Choice Question 137

Additional paid-in capital includes all of the following except

paid-in capital in excess of par.

paid-in capital in excess of book value.

paid-in capital in excess of stated value.

paid-in capital from treasury stock.

Multiple Choice Question 125

Sheffield Corporation's December 31, 2020 balance sheet showed the following:

7% preferred stock, $20 par value, cumulative, 14600 shares

authorized; 4600 shares issued

$ 92000

Common stock, $10 par value, 1010000 shares authorized;

960000 shares issued, 930000 shares outstanding

9600000

Paid-in capital in excess of parpreferred stock

28500

Paid-in capital in excess of parcommon stock

11630000

Retained earnings

3760000

Treasury stock (15000 shares)

315000

Sheffield's total paid-in capital was

$21665500.

$21035500.

$11400500.

$21350500.

Multiple Choice Question 102

Katy Hooper Inc. issued 6,000 shares of no-par common stock with a stated value of $5 per share. The market price of the stock on the date of issuance was $14 per share. The entry to record this transaction includes a

credit to Common Stock for $84,000.

debit to Paid-in Capital in Excess of Par for $84,000.

credit to Common Stock for $30,000.

debit to Cash for $30,000.

Multiple Choice Question 63

The term residual claim refers to a stockholders' right to

elect a board of directors.

share in assets upon liquidation.

acquire additional shares when offered.

receive dividends.

Multiple Choice Question 51

A corporate board of directors does not generally

declare dividends.

select officers.

formulate operating policies.

execute policy.