Norton Inc. could improve its current ratio of 2 by:

Multiple Choice

• purchasing inventory on credit.

• selling merchandise on credit at a profit.

• writing off an uncollectible receivable.

• paying a previously declared stock dividend.

The following accounts are from last years books at Sharp Manufacturing:

Raw Materials
Bal	0	(b)	156,600
(a)	170,500
	13,900

Work In Process
Bal	0	(f)	520,400
(b)	133,300
(c)	170,600
(e)	216,500
	0

Finished Goods
Bal	0	(g)	473,000
(f)	520,400
	47,400

Manufacturing Overhead
(b)	23,300	(e)	216,500
(c)	27,300
(d)	158,600
			7,300

Cost of Goods Sold
(g)	473,000

Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the amount of cost of goods manufactured for the year?

Multiple Choice

• $520,400

• $465,700

• $473,000

• $256,550

The Tolar Corporation has 400 obsolete desk calculators that are carried in inventory at a total cost of $576,000. If these calculators are upgraded at a total cost of $120,000, they can be sold for a total of $180,000. As an alternative, the calculators can be sold in their present condition for $40,000.

What is the financial advantage (disadvantage) to the company from upgrading the calculators?

Garrison 16e Rechecks 2017-12-15

Multiple Choice

• $20,000

• ($60,000)

• $140,000

• ($580,000)

When using a flexible budget, a decrease in activity within the relevant range:

Multiple Choice

• increases variable cost per unit.

• increases total costs.

• decreases variable cost per unit.

• decreases total costs.