Please answer the below question. Must show work. Mendez Company provides the following information about its product:
Question:
Please answer the below question. Must show work.
Mendez Company provides the following information about its product:
Targeted operating income | $50,000 |
Selling price per unit | 6.00 |
Variable cost per unit | 1.50 |
Total fixed costs | 125,000 |
What is the contribution margin ratio?
Question 1 options: A) 75% |
B) 100% |
C) 125% |
D) 25% |
Save
Question 2(2.5 points)
The utility bill for a law firm consists of both fixed and variable costs. Refer to the 4-month data below and apply the high-low method to answer the question.
Minutes | Total Bill | |
January | 460 | $3,000 |
February | 200 | $2,675 |
March | 160 | $2,625 |
April | 300 | $2,800 |
If the company uses 380 minutes in May, how much will the total bill be?
Question 2 options: A) $2,425 |
B) $2,478 |
C) $2,900 |
D) $3767 |
Save
Question 3(2.5 points)
Vatsala Company provides the following financial information:
Income from operations | $200,000 |
Interest expense | 45,000 |
Gains/(losses) on sale of equipment | (2,500) |
Net income | 152,500 |
Total assets at Jan 1 | 2,600,000 |
Total assets at Dec 31 | 3,200,000 |
Calculate return on investment based on the information given above.
Question 3 options: A) 6.3% |
B) 5.3% |
C) 6.9% |
D) 7.2% |
Save
Question 4(2.5 points)
Venkat Inc. manufactures and sells pens for $5 each. Wolf Corp. has offered Venkat Inc. $3 per pen for a one-time order of 3,500 pens. The total manufacturing cost per pen, using traditional costing, is $1 per unit, and consists of variable costs of $0.85 per pen and fixed overhead costs of $0.15 per watch. Assume that Venkat Inc. has excess capacity and that the special order would not adversely affect regular sales. What is the change in operating income that would result from accepting the special sales order?
Question 4 options: A) increase of $7,000 |
B) decrease of $7,000 |
C) increase of $7,525 |
D) decrease of $7,525 |
Save
Question 5(2.5 points)
Jackson Company had a finished goods inventory of 55,000 units on January 1. It's projected sales for the next four months were: January - 200,000 units; February - 180,000 units; March - 210,000 units; and April - 230,000 units. The Jackson Company wishes to maintain a desired ending finished goods inventory of 20% of the following months sales.
What should the budgeted production be for January?
Question 5 options:
| |||
| |||
| |||
|
Save
Question 6(2.5 points)
Nebraska Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business are $240,000, $300,000, and $420,000, respectively, for September, October, and November. The company expects to sell 20% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month of the sale, 25% in the month following the sale, and the remainder in the following month. The cash collections in September from accounts receivable are:
Question 6 options:
| |||
| |||
| |||
|
Save
Question 7(2.5 points)
Florida Company began its operations on March 31 of the current year. Projected manufacturing costs for the first three months of business are $156,800, $195,200, and $217,600, respectively, for April, May, and June. Depreciation, insurance, and property taxes represent $28,800 of the estimated monthly manufacturing costs. Insurance was paid on March 31, and property taxes will be paid in November. Three-fourths of the remainder of the manufacturing costs are expected to be paid in the month in which they are incurred, with the balance to be paid in the following month. The cash payments for manufacturing in the month of June are:
Question 7 options:
| ||
| ||
| ||
|
Save
Question 8(2.5 points)
The following data relate to direct materials costs for November:
Actual costs | 4,600 pounds at $5.50 |
Standard costs | 4,500 pounds at $6.00 |
What is the direct materials price variance?
Question 8 options:
| ||
| ||
| ||
|
Save
Question 9(2.5 points)
The following data relate to direct materials costs for November:
Actual costs | 4,600 pounds at $5.50 |
Standard costs | 4,500 pounds at $6.00 |
What is the direct materials quantity variance?
Question 9 options:
| ||
| ||
| ||
|
Save
Question 10(2.5 points)
The following data relate to direct labor costs for February:
Actual costs | 7,700 hours at $13 |
Standard costs | 7,000 hours at $9 |
What is the direct labor time variance?
Question 10 options:
| |||
| |||
| |||
|
Save
Question 11(2.5 points)
The following data relate to direct labor costs for February:
Actual costs | 7,700 hours at $13 |
Standard costs | 7,000 hours at $9 |
What is the direct labor rate variance?
Question 11 options:
| ||
| ||
| ||
|
Save
Question 12(2.5 points)
Balance sheet and income statement data indicate the following:
Bonds payable, 10% (issued 1988 due 2012) | $1,000,000 |
Preferred 5% stock, $100 par (no change during year) | 300,000 |
Common stock, $50 par (no change during year) | 2,000,000 |
Income before income tax for year | 350,000 |
Income tax for year | 80,000 |
Common dividends paid | 50,000 |
Preferred dividends paid | 15,000 |
Based on the data presented above, what is the number of times bond interest charges were earned ?
Question 12 options:
| |||
| |||
| |||
|
Save
Question 13(2.5 points)
Kim Corporation has two major divisions: Agricultural Products and Industrial Products. It provides the following information for the year 2014
Agriculture Division | Industrial Division | |
Sales revenue | $140,000 | $1,040,000 |
Operating income | $46,400 | $220,000 |
Average total assets | $300,000 | $5,540,000 |
Target rate of return | 14.0% | 14.0% |
Calculate the residual income for the Agriculture division.
Question 13 options:
| ||
| ||
| ||
|
Save
Question 14(2.5 points)
New York Inc. Inc. has a division that manufactures a component that sells for $150 and has a variable cost of $45. Another division of the company wants to purchase the component. Fixed cost per unit of component is $25. What is the minimum transfer price if the division is operating at capacity?
Question 14 options: A) $150 |
B) $45 |
C) $55 |
D) $140 |
Save
Question 15(2.5 points)
Da Silva Company has variable costs of $0.60 per unit of product. In August, the volume of production was 24,000 units and units sold were 20,000. The total production costs incurred were $31,900. What are the fixed costs per month?
Question 15 options: A) $17,500 |
B) $19,900 |
C) $9,600 |
D) $14,400 |
Save
Question 16(2.5 points)
Based on the following data, what is the quick ratio, rounded to one decimal point?
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 |
| |||
| |||
| |||
|
Save
Question 17(2.5 points)
The Rand Corporation began the current year with a retained earnings balance of $25,000. During the year, the company corrected an error made in the prior year, which was a failure to record depreciation expense of $3,000 on equipment. Also, during the current year, the company earned net income of $12,000 and declared cash dividends of $5,000. Compute the year end retained earnings balance.
Question 17 options:
| |||
| |||
| |||
|
Save
Question 18(2.5 points)
A company with 100,000 authorized shares of $4 par common stock issued 40,000 shares at $8. Subsequently, the company declared a 2% stock dividend on a date when the market price was $11 a share. What is the amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend?
Question 18 options:
| |||
| |||
| |||
|
Save
Question 19(2.5 points)
Phan Company owns 28% of the common stock of San Company and accounts for the investment using the equity method. Assuming that Phan Company purchased the stock several years ago, the balance in the investment account would be equal to the cost of the
Question 19 options:
| |||
| |||
| |||
|
Save
Question 20(2.5 points)
Which of the following would appear as an extraordinary item on the income statement?
Question 20 options:
| |||
| |||
| |||
|
Save
Question 21(2.5 points)
A loss on disposal of a segment would be reported in the income statement as a(n)
Question 21 options:
| |||
| |||
| |||
|
Save
Question 22(2.5 points)
The Krebhel Company issued $100,000 of 12% bonds on May 1, 2006 at face value. The bonds pay interest semiannually on January 1 and July 1. The bonds are dated January 1, 2006, and mature on January 1, 2010. The total interest expense related to these bonds for the year ended December 31, 2006 is
Question 22 options:
| ||
| ||
| ||
|
Save
Question 23(2.5 points)
When the market rate of interest was 12%, Patel Corporation issued $1,000,000, 11%, 10-year bonds that pay interest annually. The selling price of this bond issue was
Question 23 options:
| |||
| |||
| |||
|
Save
Question 24(2.5 points)
When the market rate of interest was 11%, Shah Corporation issued $100,000, 8%, 10-year bonds that pay interest semiannually. Using the straight-line method, the amount of discount or premium to be amortized each interest period would be
Question 24 options:
| |||
| |||
| |||
|
Save
Question 25(2.5 points)
A corporation purchased 1,000 shares of its $5 par common stock at $10 and subsequently sold 500 of the shares at $20. What is the amount of revenue realized from the sale?
Question 25 options:
| ||
| ||
| ||
|
Save
Question 26(2.5 points)
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 for merchandise total
Question 26 options:
| |||
| |||
| |||
|
Save
Question 27(2.5 points)
Equipment with an original cost of $50,000 and accumulated depreciation of $20,000 was sold at a loss of $7,000. As a result of this transaction, cash would
Question 27 options:
| ||
| ||
| ||
|
Save
Question 28(2.5 points)
Littleton Co. can further process Product J to produce Product D. Product J is currently selling for $21 per pound and costs $15.75 per pound to produce. Product D would sell for $35 per pound and would require an additional cost of $8.75 per pound to produce. What is the differential revenue of producing Product D?
Question 28 options:
| |||
| |||
| |||
|
Save
Question 29(2.5 points)
At the end of the fiscal year, the usual adjusting entry for depreciation on equipment was omitted. Which of the following statements is true?
Question 29 options:
| |||
| |||
| |||
|
Save
Question 30(2.5 points)
Which of the statements below indicates that a company earned a net income for the period?
Question 30 options:
| |||
| |||
| |||
|
Save
Question 31(2.5 points)
The total on the "schedule of accounts payable" for Dundalk Dance Company at January 31 should equal
Question 31 options:
| |||
| |||
| |||
|
Save
Question 32(2.5 points)
A sales invoice from Norman Geological Services included the following information: merchandise price, $4,000; transportation, $300; terms 1/10, n/eom, FOB shipping point. Assuming that a credit for merchandise returned of $600 is granted prior to payment, that the transportation is prepaid by the Norman Geological Services, and that the invoice is paid within the discount period, what is the amount of cash received by Norman Geological Services ?
Question 32 options:
| |||
| |||
| |||
|
Save
Question 33(2.5 points)
Bombay Exporters sold Maryland ImportersY merchandise on account FOB shipping point, 2/10, net 30, for $10,000. Bombay Exporters prepaid the $200 shipping charge. Which of the following entries does Bombay Exporters make to record this sale?
Question 33 options:
| |||
| |||
| |||
|
Save
Question 34(2.5 points)
A check drawn by a depositor in payment of a voucher for $725 was recorded in the journal as $257. What entry is required in the depositor's accounts?
Question 34 options:
| |||
| |||
| |||
|
Save
Question 35(2.5 points)
Which of the following items that appeared on the bank reconciliation of Shamina Event Planners didnotrequire an adjusting entry?
Question 35 options:
| |||
| |||
| |||
|
Save
Question 36(2.5 points)
A used machine with a purchase price of $77,000, requiring an overhaul costing $8,000, installation costs of $5,000, and special acquisition fees of $2,000, would have a cost basis of
Question 36 options:
| |||
| |||
| |||
|
Save
Question 37(2.5 points)
Select the most appropriate example of a capital expenditure below?
Question 37 options:
| |||
| |||
| |||
|
Save
Question 38(2.5 points)
Machinery was purchased on January 1, 2005 for $51,000 by Venkat Manufacturing Group. The machinery has an estimated life of 5 years and an estimated salvage value of $6,000. Sum-of-the-years'-digits depreciation for 2006 would be
Question 38 options:
| |||
| |||
| |||
|
Save
Question 39(2.5 points)
On the basis of the following data, what is the estimated cost of the merchandise inventory on October 31 by the retail method employed by Lazarus Fine Silks ?
Cost | Retail | |
Oct. 1 Merchandise Inventory | $225,000 | $324,500 |
Oct. 1-31 Purchases (net) | 335,000 | 475,500 |
Oct. 1-31 Sales (net) | 700,000 |
| |||
| |||
| |||
|
Save
Question 40(2.5 points)
Maryland Bakers overstates its Merchandise inventory at the end of the year . Which of the following statements correctly states the effect of the error?
Question 40 options:
| |||
| |||
| |||
|