FMC Co. uses gold in the manufacture of its jewelry products. FMC anticipates it will need to
purchase 500 ounces of gold in October 2013 for jewelry it will ship during the holiday season.
However, if the price of gold increases,
Glibler, Inc., on January 1, 2013, initiated a noncontributory defined benefit pension
plan for its employees. An actuarial consulting firm has indicated that the present
value of the project
Howard Construction Co. contracted to build a bridge for $3,000,000. Construction
began in 2012 and was completed in 2013. Data relating to the construction are:
Molnar Corporation reported the following results for Year 1, its first year in business:
Taxable income (all taxable at 34%) . . . . . . . . . . . . . . $300,000
Accounting income (income be
Intermediate Accounting II Christina Juarez
SIMULATION 1 * Corrected
Bragg Corp. had $1,500,000 net income in 2013. On January 1, 2013 there were
200,000 shares of common stock outstanding. On April 1, 25,000 shares were
issued and on September
Lauer Corporation uses the periodic inventory system and has provided the following information about
one of their laptop computers:
During the year, 750 laptop computers were sold.
What was ending inventory using the FIFO cost flow assumption?
At the beginning of the year, Blue Bird Manufacturing estimated that its annual variable
factory overhead would be $405,000, and its fixed factory overhead would be $891,000.
The company's payroll consisted of 15 direct labor employees, and each w
GoWay manufacturers and sells a portable battery-powered transportation device that
can be stored in a backpack. The device usually sells for $5,000 per unit. The company
normally sells units as quickly as manufactured and does not maintain a fini
Final Review Slides
ACCY 202 Spring 2013
Purchases & Disbursement Cycle:
3 Documents to Match
1. Purchase Order
Zeus Corporation produces cultured diamonds via a secretive process that grows the
diamonds in a vacuum chamber filled with a carbon gas cloud. The diamonds are
produced in a single continuous process, and Zeus uses the weighted-average process
Custom Clubs produces handmade golf clubs. The process is labor intensive. The speed
at which a club can be built depends on the skill level of the individual worker.
Management has established a standard of 2 labor hours per club. The standard wa
Evaluate the following and "check off" whether the comment applies to variable costing,
absorption costing, or both.
Generally accepted accounting principles require this method
for external reporting.
Blueline Printing's board of directors was presented with the following information
about operations for an upcoming three-month period. The board desires to declare
a dividend at the end of June, but still maintain cash on hand of $250,000. Bluel
Prepare a direct materials purchasing plan for January, February, and March, based on
the following facts:
Lana Gonzales owns a business that assembles ceiling fan units. Each fan requires one
motor system and four blades. Motors cost $40 each, an
Logan Township acquired its water system from a private company on June 1. No
receivables were acquired with the purchase. Therefore, total accounts receivable on
June 1 had a zero balance.
Logan plans to bill customers in the month following the
Monument Golf Markers produces granite tee box signs. These monuments are
etched with an image of the golf hole, distance to green, and other information.
Each monument typically requires 1,200 pounds of granite. The standard cost for
granite is e
Nolan Johnson is CFO for a newly formed furniture manufacturing company. Below is the anticipated monthly
production for the first year of operation, and beyond. Nolan is interested in learning which of the first twelve
months will require cash ou
Cortez Company issues $5,000,000 face value of bonds at 96 on January 1,
2009. The bonds are dated January 1, 2009, pay interest semiannually at 8% on
June 30 and December 31, and mature in 10 years. Straight-line amortization is
used for discounts and pr
Accounting 202: Mini-Test II Review Slides
Sample Conceptual Questions:
1) Which of the following controls could mitigate the risk of mishandling cash receipts?
Establish a formal credit-approving process
Granting credit to customers who are not credit
Accy 202 Midterm Review
Merchandise & Shipping
On July 31st Hawthorne Manufacturing Company (the seller)
ships $10,000 of merchandise to a customer (i.e. the buyer)
FOB shipping point. Hawthorne pays $500 of shipping related
to this sale. As part of the s
Expenses normally carry a _ balance and are reported on the _.
Debit; Statement of stockholders' equity.
Debit; Income statement.
Credit; Balance sheet.
Debit; Balance Sheet.
Credit; Income Statement
The matching principle is best dem