1. Supplies on hand at December 31, 2011, total $1,000. 2. The studio pays rent quarterly (every three months). The last payment was made November 1, 2011. The next payment will be made early in February 2012. 3. Studio equipment is being depreciated over 120 months (10 years). 4. On October 1, 2011, the studio borrowed $24,000 by signing a 12 month, 12 percent note […]

1) Giga Stuff, Inc. has a number of divisions. One division, Sophistosand, makes a component, component X, that is used in the manufacture of DVD players. Another division, Videostuff, makes DVD players that use component X and needs 60,000 units of component X per year. Sophistosand incurs the following costs for one unit of component X: Direct materials $0.30 Direct labor 0.15 Variable overhead 0.70 […]

1. Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $300,000 and credit sales are $1,000,000. An aging of accounts receivable shows that approximately 5% of the outstanding receivables will be uncollectible. What adjusting entry will Tanning Company make if the Allowance for Doubtful Accounts has a credit balance of $2,000 before adjustment? Answer a. Bad Debt Expense 20,000 […]

1.) The Hamblen Company has budgeted production for the next five quarters as follows: 2004 2004 2004 2004 2005 Quarter …………… First Second Third Fourth First Production in units … 10,000 12,000 16,000 14,000 11,000 Four pounds of raw materials are required for each unit produced. Raw materials on hand at the start of the year totals 4,000 lbs. The raw materials inventory at the […]

1. (TCOs 2 & 3) During the year, Zander is transferred by his employer from Seattle to San Diego. His moving expenses are not reimbursed and are as follows: Cost of moving household furnishings $9,000 Transportation $1,000 Meals $800 Lodging $1,400 His qualified moving expenses are: (Points : 5) $12,200. $11,800. $11,400. $10,000. None of the above

1. The Hilltop Corporation is considering (as of 1/1/08) the replacement of an old machine that is currently being used. The old machine is fully depreciated but can be used by the corporation through 2011. If Hilltop decides to replace the old machine, Baker Company has offered to purchase it for $50,000 on the replacement date. The disposal value of the old machine would be […]

1. Individual proprietors report their business income and deductions on: A. Form 1065 B. Form 1120S C. Schedule C D. Schedule A E. Form 1041 2. According to the Internal Revenue Code A?§162, deductible business expenses must be one of the following? A. incurred for the production of investment income B. ordinary and necessary C. minimized D. appropriate and measurable E. personal and justifiable 3. […]

1. Jasmine Company produces hand tools. A sales budget for the next four months is as follows: March 10,400 units, April 13,700, May 16,400 and June 21,500. Jasmine Company’s ending finished goods inventory policy is 20% of the following month’s sales. What is budgeted finished goods inventory for May? 2. Toimi has forecast sales for the next three months as follows: July 4,800 units, August […]

1. A manufacturing company prepays its insurance coverage for a three year period. The premium for the three years is $2,700 and is paid at the beginning of the first year. Eighty percent of the premium applies to manufacturing operations and 20% applies to selling and administrative activities. What amounts should be considered product and period costs respectively for the first year of coverage? Option […]

1. Medford Tooling uses a standard cost system to account for the costs of its one product. Standards are 4 sheets of 1/2 inch steel at $110 per sheet and 14 hours of labor at a standard wage rate of $13. During July, Medford Tooling produced 600 units. Materials purchased and used totaled 2,540 sheets at a total cost of $268,850. Payroll totaled $112,930 for […]