Each of the cost "types" below should be matched to one of the descriptions that follow.
Property taxes on land and building
Billboard advertising campaign
Raw material used in a m
Match the following accounting assumptions to the appropriate explanations that follow:
Monetary unit assumption
Stable currency assumption
Overcomes mixing alternative measurem
Greg Morrison recently graduated from mortuary school. He is considering opening his
own funeral home. A funeral home is a high-fixed cost business, as it requires
considerable expenditures for facilities, labor, and equipment, no matter how many
Hawthorn Corporation manufactures custom all-terrain vehicles (ATVs) and uses a job
costing system to assign and track costs. March's beginning inventory consisted of the
Work in process
Weaver Corporation's stock is selling for $16 per share. Weaver provided the following
financial statements. Use these statements to prepare comprehensive ratio analysis
tables similar to those illustrated in the chapter.
Anderson Metals manufactures and sells #3 steel rebar that is used in the construction
of slabs and driveways. The steel bar not only strengthens the finished concrete
product, but it also has unique properties such that its temperature related ex
Form a five-person team. Each team member should assume responsibility for
calculating the unknown values for one of the following scenarios.
? (50,000 units)
$700,000 (75,000 units)
Maureen Shelley is controller of Optus Communications. Optus manufactures cell phones.
She has prepared a list of typical costs incurred by the business. Review the list and
determine whether each cost is a product cost or period cost. For product
Roll Call manufactures a unique keychain with a built-in radio frequency identification
chip. This device is issued to students at State University, and a host computer
tracks student attendance at each class by automatically monitoring the
Gainesville Corporation's income statement revealed sales of $700,000; gross profit of
$300,000; selling and administrative costs of $140,000; and income taxes of $45,000.
The selling and administrative expenses included $10,000 for depreciation.
Trinity Railway began 20X5 with 900,000 shares of common stock outstanding. On March
1, 20X5, Trinity Railway issued 300,000 additional shares of common stock. 50,000 shares
of common stock were reacquired on October 1. Trinity Railway reported ne
Match the following accounting qualities to the appropriate explanations that follow:
Deviations in measured outcomes from period to period
The accountant for Rimmerex Corporation used a spreadsheet to prepare information
needed to prepare the statement of cash flows for the year ending December 31, 20X5.
However, the data were accidentally sorted alphabetically into the following lis
Melanie Mielke Construction Corporation is considering the appropriate accounting
for two unrelated events during the year. The first event related to the effects of a
labor strike that resulted in a work stoppage on a major construction project.
Work safety regulations require that the side walls of ditches and trenches be
supported by various devices to protect workers from collapse.
manufactures and sells a spray on concrete product that supports the walls of
Brazil Corporation has a simple capital structure, and its equity section follows:
Common stock, $0.50 par value, 800,000 shares
authorized, 300,000 shares issued and
Paid-in capital in excess of par - common sto
Calculate the return on assets and return on equity for the following companies. What
appears to be the average interest rate faced by the companies?
As a broad
generalization, which companies appear to be effectively utilizing debt to improve
Wiggins Corporation has 10,000,000 shares of $1 par value common stock outstanding.
This stock was originally issued at $7 per share. The company also has 1,000,000 shares
of $50, 4%, cumulative preferred stock outstanding. The preferred stock was
Magic Blade's stock has risen rapidly to $50 per share. The increase is due to
excitement about its new knife that uses a light beam to slice fruits and vegetables.
This process enhances the final appearance and quality of salads and fruit trays.
Stanley Corporation has no material problem with uncollectible accounts or
obsolete inventory. All sales and purchases are on account. The company
provided the following information for the year ending 20X7:
Beginning accounts receiv
Perfect Pad manufactures floor mats for trailers that are used to transport horses. The
mats provide for a firm footing surface that quickly sheds water. Mats are made to
customer specifications via orders submitted over an internet site. The mats
Melissa Petersen is a quality control specialist employed by Fenway Racing. Fenway
Racing manufactures custom race cars to exact specifications of drivers. Melissa's job is to
perform final testing of each car's engine and make final performance r
Examine the listed business activities and decide if each is to be classified as a:
Cash flow from operating activity
Cash flow from investing activity
Cash flow from financing activity
Non-cash investing/financing activity
Issue common stock
Mary Ann Clark is an artist and is employed by Fenway Racing.
manufactures custom race cars to exact specifications of drivers. Mary Ann's job is to
hand paint logos and other custom artwork on each car. Below is her daily time sheet
Quintanilla Corporation's controller is preparing a business plan for 20X7. The anticipated
level of business activity consists of the following key cost factors:
Total fixed costs
Total variable costs
Fairbain Corporation was newly formed early in 20X1.
relates to the full year:
Raw materials purchased (net)
The following information
Direct labor costs
Selling, general & administrative
White Manufacturing transferred $4,500,000 of raw materials into production during the
most recent year. Direct labor and factory overhead for the period totaled $3,000,000.
Beginning work in process was $1,000,000 and ending work in process was $
Billy Covington is a loan analyst for DotBanc. DotBanc accepts online business loan applications. The data are stored in a
spreadsheet ("data set"). Billy imports this data into an analysis spreadsheet and calculates the debt to total assets ratio
Fairfield Corporation owns three separate subsidiaries.
The Board of Directors is
developing a strategy to withdraw $1,000,000 in cash from one of the subsidiaries to
finance the acquisition of a fourth business. Prepare the current and quick rati