There are about 45 Questions which are to be solved.If someone could please help that'd be great. Thanks!

1) Alaska Company sold 2,000 units in October at a price of $35 per unit. The variable cost is $20 per unit. Calculate the total contribution margin. A) $70,000 B) $30,000 C) $40,000 D) $20,000 2) Mendez Company provides the following information about its product: Targeted operating income Selling price per unit Variable cost per unit Total fixed costs $50,000 6.00 1.50 125,000 Mendez has a contribution margin ratio of A) 75% B) 100% C) 125% D) 25% 3) Trang Company provided the following manufacturing costs for the month of June. Direct labor cost Direct materials cost Equipment depreciation (straightline) Factory insurance Factory manager's salary Janitor's salary Packaging costs Property taxes $136,000 80,000 24,000 19,000 12,800 5,000 18,800 16,000 Calculate Trang's total fixed costs. A) $311,600 B) $52,800 C) $71,600 D) $76,800 4) The utility bill for Shobita Legal Services LLC consists of both fixed and variable costs. Using the 4-month data below apply the high-low method to answer the question. January February March April Total Minutes Bill 460 $3,000 200 $2,675 160 $2,625 300 $2,800 If Shobita uses 380 minutes in May, how much will the total bill be? A) $2,425 B) $2,478 C) $2,900 D) $3767 5) Sangeeta Industries is considering replacing an aging Evaporator that is presently used in its production process. The following information is available: Original cost Remaining useful life in years Current age in years Book value Current disposal value in cash Future disposal value in cash (in 5 years) Annual cash operating costs Old Replacemen Evaporator t Machine $55,000 $45,000 3 3 3 0 $33,000 $9,000 $0 8,500 $0 $3,500 Sunk costs would amount to A) $55,000 B) $33,000 C) $9,000 D) $45,000 6) Vatsala Company discloses its financial information as follows: Income from operations Interest expense Gains/(losses) on sale of equipment Net income Beginning assets Ending assets $200,000 45,000 (2,500) 152,500 2,600,000 3,200,000 Calculate return on investment based on the above information. A) 6.3% B) 5.3% C) 6.9% D) 7.2% 7) Venkat Inc. manufactures and sells pens for $5 each. Inez 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? A) increase of $7,000 B) decrease of $7,000 C) increase of $7,525 D) decrease of $7,525 8) Mikhail Building Supplies Co. has a sales office which sells steel beams to property developers. It discloses its financial information as follows . Calculate the flexible budget variance for the steel beams? A) $1,850 U B) $3,000 F C) $10,000 U D) $1,500 F 9. Calculate the inventory turnover using the following data for the current year 2014 Net sales on account during 2014 $ 500,000 Cost of merchandise sold during 2014 330,000 Accounts receivable, Jan 1, 2014 45,000 Accounts receivable, December 31, 2014 35,000 Inventory, Jan 1, 2014 90,000 Inventory, December 31, 2014 110,000 a. 3.3 b. 8.3 c. 3.7 d. 3.0 10) Benjamin Nautical Company has several divisions which are investment centers. Data for the Sail Boat Division and the Yacht Trailer Division are shown here: Operating income Total assets at Jan 1 Total assets at Dec 31 Sail Boat Division $90,000 $670,000 $710,000 Yacht Division $36,000 $230,000 $220,000 Which of the following statements would be the most meaningful interpretation of this data? A) Performance of Sail Boat Division is better than that of Yacht Division because Sail Boat Division has higher assets. B) Yacht Division uses its assets more efficiently than Sail Boat Division because it has higher ROI. C) Sail Boat Division shows more efficient use of assets than Yacht Division because it has higher operating income. D) Sail Boat Division is more financially successful than Yacht Division because it shows an increase in assets 11. C K Venkat Chemicals estimates for July are as follows: Estimated inventory (units), July 1 8,500 Desired inventory (units), July 31 10,500 Expected sales volume (units), July 76,000 For each unit produced, the direct materials needed are: Direct material A ($5 per lb.) 3 lbs. Direct material B ($18 per lb.) 1/2 lb. Calculate the total direct materials purchases of materials A and B (assuming no beginning or ending material inventory) required for July productions: a. $1,080,000 for A; $648,000 for B b. $1,080,000 for A; $1,296,000 for B c. $1,170,000 for A; $702,000 for B d. $1,125,000 for A; $675,000 for B 12.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. Calculate the budgeted production for January? a. 236,000 b. 181,000 c. 200,000 d. 219,000 13. 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. Calculate the cash collections in September from accounts receivable: a. $240,000 b. $134,400 c. $192,000 d. $168,000 14.Florida Company opened its doors 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. Calculate the cash payments for manufacturing in the month of June : a. $14,600 b. $188,800 c. $217,600 d. $183,200 15.CK Venkat Chemicals releases the following data related to direct materials costs for November: Actual costs 4,600 pounds at $5.50 Standard costs 4,500 pounds at $6.00 Calculate the direct materials price variance? a. $2,250 favorable b. $2,250 unfavorable c. $2,300 favorable d. $1,700 unfavorable 16 CK Venkat Chemicals releases 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 Calculate the direct materials quantity variance? a. $550 unfavorable b. $600 favorable c. $550 favorable d. $600 unfavorable 17. CK Venkat Chemicals releases the following data related to direct labor costs for February: Actual costs 7,700 hours at $13 Standard costs 7,000 hours at $9 Calculate the direct labor time variance? a. $9,100 favorable b. $9,100 unfavorable c. $6,300 unfavorable d. $6,300 favorable 18. CK Venkat Chemicals releases the following data relate to direct labor costs for February: Actual costs 7,700 hours at $13 Standard costs 7,000 hours at $9 Calculate the direct labor rate variance? a. $28,000 favorable b. $28,000 unfavorable c. $30,800 favorable d. $30,800 unfavorable 19. The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows: Standard Costs Fixed overhead (based on 10,000 hours) 3 hours @ $.80 per hour Variable overhead 3 hours @ $2 per hour Actual Costs Total variable cost, $18,000 Total fixed cost, $8,000 The amount of the factory overhead volume variance is: a. $2,000 favorable b. $2,000 unfavorable c. $2,500 unfavorable d. $0 20.The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows: Standard Costs Fixed overhead (based on 10,000 hours) 3 hours @ $.80 per hour Variable overhead 3 hours @ $2 per hour Actual Costs Total variable cost, $18,000 Total fixed cost, $8,000 The amount of the total factory overhead cost variance is: a. $2,000 favorable b. $5,000 unfavorable c. $2,500 unfavorable d. $0 21. Balance sheet and income statement data indicate the following: Bonds payable, 10% (issued 1988 due 2012) Preferred 5% stock, $100 par (no change during year) Common stock, $50 par (no change during year) Income before income tax for year $1,000,000 300,000 2,000,000 350,000 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 ? a. 3.7 b. 4.4 c. 4.5 d. 3.5 22) Kim Corporation has two major divisions: Northern Products and Southern Products. It provides the following information for the year 2014 Sales revenue Operating income Average total assets Target rate of return Northern Products Southern Products Division Division $140,000 $1,040,000 $46,400 $220,000 $300,000 $5,540,000 14.0% 14.0% Calculate the residual income for the Northern division. A) $5,500 B) $4,400 C) $2,500 D) $1,800 23) 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? Assume the division is operating at capacity? A) $150 B) $45 C) $55 D) $140 24) 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 maximum transfer price if the division is operating below its capacity? A) $70 B) $170 C) $150 D) $30 25) Fletcher Supplies Company has a sales office which sells concrete culvert pipe to property developers. The sales office is a revenue center and must prepare a monthly performance report. It has provided the following information. How much is the flexible budget variance for the 40 inch pipe? A) $1,850 U B) $3,000 F C) $10,000 U D) $1,500 F 26) Fletcher Supplies Company has a sales office which sells concrete culvert pipe to property developers. The sales office is a revenue center and must prepare a monthly performance report. Below is the partially completed performance report. The company uses management by exception to address flexible budget variances. On which variance would the company focus first? A) 40 inch B) 36 inch long C) 36 inch short D) 32 inch 27) Chesapeake Company provided the following manufacturing costs for the month of June. Direct labor cost Direct materials cost Equipment depreciation (straightline) Factory insurance Factory manager's salary Janitor's salary Packaging costs Property taxes $136,000 80,000 24,000 19,000 12,800 5,000 18,800 16,000 From the above information, calculate Chesapeake's total variable costs. A) $311,600 B) $62,300 C) $234,800 D) $38,400 28) 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? A) $17,500 B) $19,900 C) $9,600 D) $14,400 29. Based on the following data, what is the quick ratio, rounded to one decimal point? Accounts payable Accounts receivable Accrued liabilities $ 30,000 65,000 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 Prepaid expenses 625,000 2,000 a. 2.4 b. 3.4 c. 2.1 d. 1.5 30.A company with working capital of $400,000 and a current ratio of 2.5 pays a $75,000 short-term liability. The amount of working capital immediately after payment is a. $475,000 b. $325,000 c. $400,000 d. $75,000 31. Based on the following data for the current year, what is the inventory turnover? 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 a. 3.3 b. 8.3 c. 3.7 d. 3.0 32.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. The error was due to the accountant failing 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. a. $29,000 b. $35,000 c. $39,000 d. $45,000 33. Lazarus Consulting Services has 100,000 authorized shares of $4 par common stock issued 40,000 shares at $8. Subsequently, Lazarus 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? a. $3,200 b. $6,400 c. $4,800 d. $8,800 34. Ignatius the Investor's Income for the period would not be affected by a. interest received on a temporary investment in bonds b. dividends received on a long-term investment in stock where the investor owns 10% of the investee's stock c. dividends received on a long-term investment in stock where the investor owns 30% of the investee's stock d. interest received on a long-term investment in bonds 35. 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 a. investment b. investment plus Phan's share of San's net income earned since the investment was purchased c. investment plus the total amount of dividends Phan has received from San since the investment was purchased d. investment plus Phan's share of San's net income earned since the investment was purchased minus the total amount of dividends Phan has received from San since the investment was purchased 36.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 a. $2,000 b. $4,000 c. $8,000 d. 12,000 37.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 a. $ 321,970 b. $1,000,000 c. $ 943,494 d. $621,524 38.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 a. $4,000 b. $896 c. $17,926 d. $1,793 39. Bri Cheese Products Co. 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 by Bri from the sale? a. $0 b. $5,000 c. $2,500 d. $10,000 40.Bri Cheese Products Co. purchases 10,000 shares of its own $10 par common stock for $25 per share, recording it at cost. What will be the effect on Bri's total stockholders' equity? a. increase, $100,000 b. increase, $250,000 c. decrease, $100,000 d. decrease, $250,000 41. Below are selected T accounts from Bri Cheese Dairy with incomplete information: Work in Process Oct. 1 Balance 20,000 | Oct. 31 Goods 31 Direct | finished X materials 96,700 | 31 Direct | labor 201,000 | 31 Factory overhead | X| Finished Goods Oct. 1 Balance 52,000 | 31 Goods | finished 360,000 | If the balance of Work in Process at October 31 is $21,000, what was the amount of factory overhead applied in October by Bri? a. $63,300 b. $21,300 c. $42,300 d. $11,300 42. CK Venkat Chemicals had incurred labor costs incurred on account during this period. The amount was $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. Which of the following entries will CK Venkat use to record the factory overhead applied to production. a. Work in Process 30,000 Factory Overhead b. Factory Overhead 30,000 17,000 Work in Process c. Work in Process Factory Overhead d. Factory Overhead Accounts Payable 17,000 17,000 17,000 30,000 30,000 43. Use the Direct Method for this problem. Baltimore Tourist Trinkets had cost of merchandise sold during the 2014 at $50,000. Merchandise inventories were $12,500 and $10,500 On January 1 2014 and December 31, 2014 respectively. Accounts payable were $6,000 and $5,000 at the beginning and end of the year, respectively. Cash payments for merchandise total are a. $49,000 b. $47,000 c. $51,000 d. $53,000 44. Patriots Inc. had equipment with an original cost of $50,000 and accumulated depreciation of $20,000. This was sold at a loss of $7,000. As a result of this transaction, Patriot's cash would a. increase by $23,000 b. decrease by $7,000 c. increase by $43,000 d. decrease by $30,000 45. 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? a. $7 per pound b. $8.75 per pound c. $14 per pound d. $5.25 per pound The End