39. Lott Bicycle Company has been manufacturing its own seats for its bicycles. The company is currently operating at 100% of capacity, and variable manufacturing overhead is charged to production at the rate of 60% of direct labor cost. The direct materials and direct labor cost per unit to make the bicycle seats are $8.00 and $9.00, respectively. Normal production is 50,000 bicycles per year. […]

Network Computing Devices Inc. was founded in 1988 in Mountain View, California. The company develops software products such as X terminals, Z mail, PC X ware, and related hardware products. Presented below is a discussion by management in its annual report. NETWORK COMPUTING DEVICES, INC. Management Discussion The Company’s operating results have varied significantly, particularly on a quarterly basis, as a result of a number […]

4.A 60 day, 12% note for $10,000, dated May 1, is received from a customer on account. The maturity value of the note is Answer a. $10,200 b. $10,000 c. $11,200 d. $9,800 5. Who pays the freight cost when the terms are FOB destination? Answer a. the buyer b. either the buyer or the seller c. the customer d. the seller 6. Use the […]

On January 1, 2011 the Batista Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2011. ? The ending raw materials and finished goods inventories at December 31, 2010, follow the same percentage relationships to production and sales that occur in 2011.Three pounds of raw materials are required to make each unit of finished goods. Raw materials […]

4. Bartlow, Inc had the folling income statement for the month of May. Sales Revenue 428,000 Cost of goods sold 205,440 Gross Margin 222,560 Less: Selling Expenses 81,320 Administrative Expenses 72,760 Operating Income 68,480 What was the sales revenue percent? 1. 100% 2. 48% 3. 52% 4. 16% 5. Junko company makes typewriters. During the year Junko manufactured 97,000 typewriters. Finished goods Inventory had the […]

Organic Pastures is a 400 acre farm on the outskirts of the Kentucky Bluegrass, specializing in the boarding of broodmares and their foals. A recent economic downturn in the thoroughbred industry has led to a decline in breeding activities, and it has made the boarding business extremely competitive. To meet the competition, Organic Pastures planned in 2012 to entertain clients, advertise more extensively, and absorb […]

4. value: 25.00 points A family friend has asked your help in analyzing the operations of three anonymous companies operating in the same service sector industry. Supply the missing data in the table below: (Negative amounts should be indicated by a minus sign. Do not round immediate calculations, but round your final answers to the nearest whole number. ) Company A B C Sales $ […]

Carabiner Co. sold 28,000 annual magazine subscriptions for $40 during December 2012. These new subscribers will receive monthly issues, beginning in January 2013. In addition, the business had taxable income of $130,000 during the first calendar quarter of 2013. The federal tax rate is 40%. A quarterly tax payment will be made on April 15, 2013. Prepare the Current Liabilities section of the balance sheet […]

7. The following data have been taken from the budget reports of Brandon company,a merchandising company . Ja nuary …………. Pm’C11 1ses $160,000 Sales $100,000 Febuary……….. $160,000 $200 000 March ………..….. $160,000 $240,000 April………………. $140,000 $300,000 May…..………..…. $140,000 $260,000 June ….……….….. $120,000 $240,000 Forty percentof purchases are paid for in cash at the time of purchase, and 30% are paid for in each of the […]

8. On August 1, Kim Company accepted a 90 day note receivable as payment for services provided to Hsu Company. The terms of the note were $10,000 face value and 6% interest. On October 30, the journal entry to record the collection of the note should include a Answer a. debit to Interest Receivable for $150 b. debit to Notes Receivable for $10,000 c. credit […]