Summer Company is considering three capital expenditure projects. Relevant data for the
projects are as follows.
Project Investment Annual Income Life of Project
Cost of goods manufactured schedule for the month ended June 30, 2008.
beginning raw material
Raw materials purchased
available for use
Less: ending raw material inventory
1. (TCO 10) Not all pricing methods apply to the market place. In manufacturing it is common
practice to determine the cost of a product as it moves through it transformation to a finished
product. (1) Explain how a transfer price could be used to make ot
SY Telc has recently started the manufacture of RecRobo, a three-wheeled robot that can scan a
home for fires and gas leaks and then transmit this information to a mobile phone. The cost
structure to manufacture 20,000 RecRobos is as follows.
On June 1 Eckersley Service Co. was started with an initial investment in the company of $26,200 cash.
Here are the assets and liabilities of the company at June 30, and the revenues and expenses for the
month of June, its first month of opera
Chapter 7: E7-13, P7-1A
Chapter 8: P8-1A
Pink Martini Corporation is projecting a cash balance of $31,000 in its December 31, 2007, balance
sheet. Pink Martinis schedule of expected collections from customers for the first quarter of 2008 shows
1. (TCO 1) An income statement shows which of the following? (Points : 4)
revenues, liabilities, and stockholders equity
expenses, dividends, and stockholders equity
revenues, expenses, and net income
assets, liabilities, and stockholders equity
2. (TCO 1
Mucky Duck makes swimsuits and sells these suits directly to retailers. Although Mucky Duck
has a variety of suits, it does not make the All-Body suit used by highly skilled swimmers. The
market research department believes that a strong market exis
(TCO 9) Which of the following steps in the management decision-making process generally
involves the managerial accountant?
Determine possible courses of action
Make the appropriate decision based on relevant data
Prepare internal reports