Final Fa2009 Solution

117000 intangible assets net 24000 other

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Unformatted text preview: 00 Fixed Assets, net .........................................................117,000 Intangible Assets, net ....................................................24,000 Other Assets ....................................................................3,000 Total Assets...............................................................$630,000 Current Liabilities .....................................................$246,000 Long-term Liabilities ..................................................136,000 Stockholders’ Equity...................................................248,000 Total Liabilities and Stockholders’ Equity ..............$630,000 Capital believes that its current ratio is double the industry average and that its debt ratio is ½ the industry average. Capital’s management has asked you to prepare a common-size balance sheet for them. What amount will appear on the Total Assets line of the common-size balance sheet? 100% 6A:002 Fall 2009 – Final Exam Page 10 Use the following information about SoundWave to answer questions 22 through 25. SoundWave manufactures two types of speaker wire: Standard and Deluxe. Both products are made in the same plant. Materials pass through two completely automated processes: Fabrication and Testing. SoundWave currently uses a single plantwide overhead rate based on wire length to allocate overhead to product lines. SoundWave’s management produced the following reports about production and costs. Overhead Report Overhead Cost Fabrication Testing Total Overhead Cost Fabrication hours $225,000 400,000 $625,000 Standard 4,000 Deluxe 6,000 Total 10,000 Standard $45,000 468,750 $513,750 300,000 $1.7125 Deluxe $80,000 156,250 $236,250 100,000 $2.3625 Total $125,000 625,000 $750,000 400,000 $1.8750 Product Cost Report Direct materials cost Overhead allocated Total cost Feet manufactured Cost per foot Recently, SoundWave’s auditor recommended that SoundWave adopt an activity based costing system. If SoundWave adopts this system, it will use fabrication hours as the co...
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