Files are attached
Question 1
The administrators of Crawford County’s Memorial Hospital are interested in identifying the various costs and expenses that are incurred in producing a patient’s X-ray. A list of such costs and expenses is presented here.
The administrators want these costs and expenses classified as direct materials, direct labor, or service overhead.
For each item, indicate the cost category to which the item belongs.
| Category | ||||
| 1. | Salaries for the X-ray machine technicians. | select a cost category | ||
| 2. | Wages for the hospital janitorial personnel. | select a cost category | ||
| 3. | Film costs for the X-ray machines. | select a cost category | ||
| 4. | Property taxes on the hospital building. (Only for the portion that applies to the X-ray department) | select a cost category | ||
| 5. | Salary of the X-ray technicians’ supervisor. | select a cost category | ||
| 6. | Electricity costs for the X-ray department. | select a cost category | ||
| 7. | Maintenance and repairs on the X-ray machines. | select a cost category | ||
| 8. | X-ray department supplies. | select a cost category | ||
| 9. | Depreciation on the X-ray department equipment. | select a cost category | ||
| 10. | Depreciation on the hospital building. (Only for the portion that applies to the X-ray department) | select a cost category |
Question 3
The following is a list of costs and expenses usually incurred by Barnum Corporation, a manufacturer of furniture, in its factory.
Classify these items into the following categories: (a) direct materials, (b) direct labor, and (c) manufacturing overhead.
| Category | ||||
| 1. | Salaries for product inspectors. | select a category | ||
| 2. | Insurance on factory machines. | select a category | ||
| 3. | Property taxes on the factory building. | select a category | ||
| 4. | Factory repairs. | select a category | ||
| 5. | Upholstery used in manufacturing furniture. | select a category | ||
| 6. | Wages paid to assembly-line workers. | select a category | ||
| 7. | Factory machinery depreciation. | select a category | ||
| 8. | Glue, nails, paint, and other small parts used in production. | select a category | ||
| 9. | Factory supervisors’ salaries. | select a category | ||
| 10. | Wood used in manufacturing furniture. | select a category |
Question 4
Cline Manufacturing Company uses a job order system and maintains perpetual inventory records.
Indicate the the appropriate account(s) to be debited and credited for the transactions listed below. (On multiple entries enter answers in alphabetical order.)
Transactions
Account(s)
Debited
Account(s)
Credited
1.
Raw materials were purchased on account.
enter an account title to be debited
enter an account title to be credited
2.
Issued a check to Dixon Machine Shop for repair work on factory equipment.
enter an account title to be debited
enter an account title to be credited
3.
Direct materials were requisitioned for Job 280.
enter an account title to be debited
enter an account title to be credited
4.
Factory labor was paid as incurred.
enter an account title to be debited
enter an account title to be credited
5.
Recognized direct labor and indirect labor used.
enter an account title to be debited
enter an account title to be credited
enter an account title to be debited
6.
The production department requisitioned indirect materials for use in the factory.
enter an account title to be debited
enter an account title to be credited
7.
Manufacturing overhead was applied to production based on a predetermined overhead rate of $8 per labor hour.
enter an account title to be debited
enter an account title to be credited
8.
Goods that were completed were transferred to finished goods inventory.
enter an account title to be debited
enter an account title to be credited
9.
Goods costing $80,000 were sold for $105,000 on account.
enter an account title to be debited
enter an account title to be credited
enter an account title to be debited
enter an account title to be credited
10.
Paid for raw materials purchased previously on account.
enter an account title to be debited
enter an account title to be credited
Question 5
Sheridan Company has the following production data for selected months.
| Ending | |||||||||
| Month | Beginning | Units |
| % Complete as to | |||||
| January | –0– | 39,900 | 11,400 | 40 | |||||
| March | –0– | 45,600 | 9,120 | 75 | |||||
| July | –0– | 51,300 | 18,240 | 25 | |||||
Compute equivalent units of production for materials and conversion costs, assuming that materials are entered at the beginning of the process and that conversion costs are incurred uniformly throughout the process.
| Materials | Conversion Costs | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| January | enter a number of units | enter a number of units | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| March | enter a number of units | enter a number of units | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| July | enter a number of units | enter a number of units | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Question 6 The Kirkland Department of Indigo Company began the month of December with work in process inventory of 4,800 units that are 100% complete as to materials and 30% complete as to conversion costs. Units completed and transferred out are 12,000 units. Ending work in process inventory contains 9,600 units that are 100% complete as to materials and 60% complete as to conversion costs.
Question 7 Oriole Co. has a product with a unit selling price of $660, variable cost per unit $380, and fixed costs of $380,800.
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Question 8
Carla Vista, Inc. reported actual sales of $2,129,000 and fixed costs of $383,220. The contribution margin ratio is 25%.
Compute the company’s margin of safety in dollars and the margin of safety ratio.
| Margin of safety in sales dollars | $enter a dollar amount | |||
| Margin of safety ratio | enter percentages |
Question 9
Carla Vista Company has three product lines in its retail stores: books, videos, and music. The allocated fixed costs are based on units sold and are unavoidable. Demand of individual products is not affected by changes in other product lines. Results of the fourth quarter are presented below:
| Books | Music | Videos | Total | ||||||
| Units sold | 1,180 | 2,360 | 2,360 | 5,900 | |||||
| Revenue | $28,320 | $56,640 | $35,400 | $120,360 | |||||
| Variable departmental costs | 17,700 | 25,960 | 27,140 | 70,800 | |||||
| Direct fixed costs | 3,540 | 7,080 | 4,720 | 15,340 | |||||
| Allocated fixed costs | 5,192 | 10,384 | 10,384 | 25,960 | |||||
| Net income (loss) | $1,888 | $13,216 | $(6,844) | $8,260 |
Prepare an incremental analysis of the effect of dropping the Video product line. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
| select an item | $enter a dollar amount | ||
| select an item | enter a dollar amount | ||
| select an item | enter a dollar amount | ||
| select a closing name | $enter a total amount |
Question 11
Cheyenne Inc. provided the following information:
| April | May | June | |||||
| Projected merchandise purchases | $91,500 | $81,000 | $65,000 |
| • | Cheyenne pays for 30% of merchandise purchases in the month of the purchase and 70% in the following month. | |
| • | General operating expenses are budgeted to be $30,500 per month of which depreciation is $3,600 of this amount. Cheyenne pays operating expenses in the month incurred. | |
| • | Cheyenne makes loan payments of $4,000 per month of which $550 is interest and the remainder is principal. |
Calculate budgeted cash disbursements for May.
| Total budgeted cash disbursements | $enter the budgeted cash disbursements for May in dollars |
Question 13
Bargain Wholesale Supply owns stock in Cyrus Corporation, which it intends to hold indefinitely because of some negative tax consequences if sold. Should the investment in Cyrus be classified as a short-term investment?
| select an option |
Question 14
To house excess cash until needed, corporations typically invest in
Select answer from the options below
stocks of companies in a related industry.
debt securities.
low-risk, highly liquid securities.
stock securities.
Question 15
The management of Novak Inc. is trying to decide whether it can increase its dividend. During the current year, it reported net income of $878,400. It had net cash provided by operating activities of $649,300, paid cash dividends of $80,600, and had capital expenditures of $284,500.
(a1) Compute the company’s free cash flow. (Enter negative amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
| Free cash flow | $enter the free cash flow amount in dollars |
