Questions from General Accounting

Q: The management of Rocko’s Pizzeria is considering a special promotion for the

The management of Rocko’s Pizzeria is considering a special promotion for the last two weeks of May, which is normally a relatively low-demand period. The special promotion would involve selling two m...

Q: Ironstone Inc. produces ceramic coffee mugs and pencil holders. Manufacturing

Ironstone Inc. produces ceramic coffee mugs and pencil holders. Manufacturing overhead is assigned to production using an application rate based on direct labor hours. Required: a. For 2022, the comp...

Q: Nautical Footwear Inc. manufactures women’s boating shoes. Manufacturing overhead is

Nautical Footwear Inc. manufactures women’s boating shoes. Manufacturing overhead is assigned to production on a machine-hour basis. For 2022, it was estimated that manufacturing overhead would total...

Q: Janson Inc. produces pickup truck bumpers. Overhead is applied on

Janson Inc. produces pickup truck bumpers. Overhead is applied on the basis of machine hours required for cutting and fabricating. A predetermined overhead application rate of $25.40 per machine hour...

Q: From the following data, calculate the retained earnings balance as of

From the following data, calculate the retained earnings balance as of December 31, 2022:

Q: Creative Lighting Inc. makes specialty table lamps. Manufacturing overhead is

Creative Lighting Inc. makes specialty table lamps. Manufacturing overhead is applied to production on a direct labor hours basis. During June, the first month of the company’s fiscal year, $110,880 o...

Q: Trendy Creations Tie Co. manufactures neckties and scarves. Two overhead

Trendy Creations Tie Co. manufactures neckties and scarves. Two overhead application bases are used; some overhead is applied on the basis of raw material cost at a rate of 150% of material cost, and...

Q: Staley Toy Co. makes toy flutes. Two manufacturing overhead application

Staley Toy Co. makes toy flutes. Two manufacturing overhead application bases are used; some overhead is applied on the basis of machine hours at a rate of $7.20 per machine hour, and the balance of t...

Q: Angora Creations Co. manufactures wool sweaters. Costs incurred in making

Angora Creations Co. manufactures wool sweaters. Costs incurred in making 45,000 sweaters in September included $180,000 of fixed manufacturing overhead. The total absorption cost per sweater was $34....

Q: Colorado Business Tools manufactures calculators. Costs incurred in making 12,

Colorado Business Tools manufactures calculators. Costs incurred in making 12,500 calculators in February included $42,500 of fixed manufacturing overhead. The total absorption cost per calculator was...