Question: Dorsett Corporation reported sales revenue of $257,

> Cassien Inc. manufactures products that pass through two or more processes. During June, equivalent units were computed using the weighted average method: Units completed ……………………………………………………………………. 53,400 Units in EWIP 3 Fraction complete (36,000 3 60%

> On July 1, Job 46 had a beginning balance of $1,235. During July, prime costs added to the job totaled $560. Of that amount, direct materials were three times as much as direct labor. The ending balance of the job was $1,921. Required: 1. What was overh

> At the beginning of the year, Glaser Company estimated the following: Glaser uses departmental overhead rates. In the assembly department, overhead is applied on the basis of direct labor hours. In the testing department, overhead is applied on the bas

> At the beginning of the year, Horvath Company estimated the following: Overhead …………………………………… $486,400 Direct labor hours …………………………… 95,000 Horvath uses normal costing and applies overhead on the basis of direct labor hours. For the month of January,

> Ranger Company purchases 17,280 units of Product Beta each year in lots of 864 units per order. The cost of placing one order is $10, and the cost of carrying one unit of product in inventory for a year is $6. Required: 1. How many orders for Beta does

> a. Auto manufacturing b. Dental services c. Auto repair d. Costume making Required: CONCEPTUAL CONNECTION For each of the given types of industries, give an example of a firm that would use job-order costing. Then, give an example of a firm that would u

> a. Hospital services b. Custom cabinet making c. Toy manufacturing d. Soft-drink bottling e. Airplane manufacturing (e.g., 767s) f. Personal computer assembly g. Furniture making (e.g., computer desks sold at discount stores) h. Custom furniture making i

> Each of the following situations is independent. Required: 1. Kester Company had ending inventory cost of $5,000 under absorption costing. Ending inventory cost $3,400 under variable costing. Kester produced 16,000 units and sold 15,200. What was fixed

> Sommers Company uses the following rule to determine whether materials usage variances should be investigated: A materials usage variance will be investigated anytime the amount exceeds the lesser of $12,000 or 10% of the standard cost. Reports for the p

> Stillwater Designs rebuilds defective units of its S12L7 Kicker speaker model. During the year, Stillwater rebuilt 7,500 units. Materials and labor standards for performing the repairs are as follows: Direct materials (1 recon kit @ $150) ……………….. $150.

> In the coming year, Kalling Company expects to sell 28,700 units at $32 each. Kalling’s controller provided the following information for the coming year. Units production ………………………………………………… 30,000 Unit direct materials ……………………………………………. $9.95 Unit di

> Overton Company produced 80,000 units last year. The company sold 79,000 units and there was no beginning inventory. The company chose practical activity—at 80,000 units—to compute its predetermined overhead rate. Manufacturing costs are as follows: Dir

> Amiens Company produced 20,000 units during its first year of operations and sold 18,900 at $17 per unit. The company chose practical activity—at 20,000 units—to compute its predetermined overhead rate. Manufacturing costs are as follows: Direct materia

> Healder Company provided information on the following three overhead activities. Healder has found that the following driver levels are associated with two different levels of production. Required: Prepare an activity-based flexible budget for the tw

> Anker Company had the data below for its most recent year, ended December 31: Required: Prepare a performance report that shows the variances on an item-by-item basis. Actual costs: Variable overhead standar ds: Indirect labor S36,000 $3,800 1,490

> Last year, Gladner Company had planned to produce 140,000 units. However, 143,000 units were actually produced. The company uses direct labor hours to assign overhead to products. Each unit requires 0.9 standard hour of labor for completion. The fixed ov

> Zepol Company is planning to produce 600,000 power drills for the coming year. The company uses direct labor hours to assign overhead to products. Each drill requires 0.75 standard hour of labor for completion. The total budgeted overhead was $1,777,500.

> Ruth Swazey, divisional controller and certified management accountant, was upset by a recent memo she received from the divisional manager, Paul Chesser. Ruth was scheduled to present the division’s financial performance at headquarters in one week. In

> At April 30, the bank reconciliation of Back 40 Company shows three outstanding checks: No. 254 $650, No. 255 $700, and No. 257 $410. The May bank statement and the May cash payments journal are given here. Instructions Using step 2 in the reconciliatio

> Consider these transactions: (a) Tastee Restaurant accepted a Visa card in payment of a $200 lunch bill. The bank charges a 3% fee. What entry should Tastee make? (b) Martin Company sold its accounts receivable of $65,000. What entry should Martin make,

> On January 1, 2017, the Hermann Company ledger shows Equipment $36,000 and Accumulated Depreciation $13,600. The depreciation resulted from using the straight-line method with a useful life of 10 years and a salvage value of $2,000. On this date, the com

> While examining cash receipts information, the accounting department deter-mined the following information: opening cash balance $150, cash on hand $1,125.74, and cash sales per register tape $988.62. Prepare the required journal entry based upon the cas

> Gotham Company purchased a new machine on October 1, 2017, at a cost of $90,000. The company estimated that the machine has a salvage value of $8,000. The machine is expected to be used for 70,000 working hours during its 8-year life. Instructions Comput

> For 2017, Sale Company reported beginning total assets of $300,000 and ending total assets of $340,000. Its net income for this period was $50,000, and its net sales were $400,000. Compute the company’s asset turnover for 2017.

> Sarasota Company has a credit balance of $2,200 in Allowance for Doubtful Accounts before adjustment. The estimated uncollectibles under the percentage- of-receivables basis is $5,100. Prepare the adjusting entry.

> Byrd Co. uses the percentage-of-receivables basis to record bad debt expense and concludes that 2% of accounts receivable will become uncollectible. Accounts receivable are $400,000 at the end of the year, and the allowance for doubtful accounts has a cr

> Assume the same information as BE8-3(given below) and that on March 4, 2017, Safer Co. receives payment of $4,300 in full from Madonna Inc. Prepare the journal entries to record this transaction. Data from Be8-3: At the end of 2016, Safer Co. has account

> Gordon Chemicals Company acquires a delivery truck at a cost of $31,000 on January 1, 2017. The truck is expected to have a salvage value of $4,000 at the end of its 4-year useful life. Compute annual depreciation for the first and second years using the

> For each of the following income statement line items, state whether the item is a “by nature” expense item or a “by function” expense item. ________ Cost of goods sold. ________ Utilities expense. ________ Depreciation expense. ________ Delivery expense

> In 2017, Bismark Company has net credit sales of $1,600,000 for the year. It had a beginning accounts receivable (net) balance of $108,000 and an ending accounts receivable (net) balance of $120,000. Compute Bismark Company’s (a) accounts receivable turn

> At the end of 2016, Safer Co. has accounts receivable of $700,000 and an allowance for doubtful accounts of $25,000. On January 24, 2017, it is learned that the company’s receivable from Madonna Inc. is not collectible and therefore management authorizes

> Krieg Company had the following two transactions related to its delivery truck. 1. Paid $38 for an oil change. 2. Paid $400 to install special shelving units, which increase the operating efficiency of the truck. Prepare Krieg’s journal entries to record

> Pat Buhn is the new owner of Young Co. She has heard about internal control but is not clear about its importance for her business. Explain to Pat the four purposes of internal control, and give her one application of each purpose for Young Co.

> Thoms Company incurs these expenditures in purchasing a truck: cash price $24,000, accident insurance (during use) $2,000, sales taxes $1,080, motor vehicle license $300, and painting and lettering $1,700. What is the cost of the truck?

> On January 10, Molly Amise uses her Lawton Co. credit card to purchase merchan-dise from Lawton Co. for $1,700. On February 10, Molly is billed for the amount due of $1,700. On February 12, Molly pays $1,100 on the balance due. On March 10, Molly is bill

> Record the following transactions on the books of Jarvis Co. (Omit cost of goods sold entries.) (a) On July 1, Jarvis Co. sold merchandise on account to Stacey Inc. for $23,000, terms 2/10, n/30. (b) On July 8, Stacey Inc. returned merchandise worth $2,4

> On March 1, Lincoln sold merchandise on account to Amelia Company for $28,000, terms 1/10, net 45. On March 6, Amelia returns merchandise with a sales price of $1,000. On March 11, Lincoln receives payment from Amelia for the balance due. Prepare journal

> These expenditures were incurred by Dobbin Company in purchasing land: cash price $60,000, accrued taxes $5,000, attorney’s fees $2,100, real estate broker’s commission $3,300, and clearing and grading $3,500. What is the cost of the land?

> On January 6, Jacob Co. sells merchandise on account to Harley Inc. for $9,200, terms 1/10, n/30. On January 16, Harley pays the amount due. Instructions Prepare the entries on Jacob Co.’s books to record the sale and related collection. (Omit cost of go

> Assume that on September 1, Office Depot had an inventory that included a variety of calculators. The company uses a perpetual inventory system. During September, these transactions occurred. Sept. 6 Purchased calculators from Dragoo Co. at a total cost

> On July 15, a company purchases on account goods costing $1,900, with credit terms of 2/10, n/30. On July 18, the company receives a $400 credit memo from the supplier for damaged goods. Give the journal entry on July 24 to record payment of the balance

> In the following cases, use a periodic inventory system to identify the item(s) designated by the letters X and Y. (a) Purchases − X − Y = Net purchases. (b) Cost of goods purchased − Net purchases = X. (c) Beginning inventory + X = Cost of goods availab

> Harbinger Inc. reported sales of $2 million for 2017. Accounts receivable decreased $150,000 and accounts payable increased $300,000. Compute cash receipts from customers, assuming that the receivable and payable transactions are related to operations.

> Identify the accounts that are added to or deducted from purchases to determine the cost of goods purchased under a periodic system. For each account, indicate (a) whether it is added or deducted, and (b) its normal balance.

> Suppose 3M Company reported the following financial data for 2017 and 2016 (in millions). Instructions (a) Calculate the current ratio for 3M for 2017 and 2016. (b) Suppose that at the end of 2017, 3M management used $300 million cash to pay off $300 mi

> Dowell Hardware reported cost of goods sold as follows. Dowell made two errors: 1. 2016 ending inventory was overstated by $2,000. 2. 2017 ending inventory was understated by $5,000. Instructions Compute the correct cost of goods sold for each year.

> If a 6%, 10-year, $800,000 bond is issued at face value and interest is paid annually, what is the amount of the interest payment at the end of the first period?

> Prepare the journal entries to record these transactions on Kimble Company’s books using a periodic inventory system. (a) On March 2, Kimble Company purchased $800,000 of merchandise from Poe Company, terms 2/10, n/30. (b) On March 6, Kimble Company retu

> Hoffman Corporation reported income taxes of $370,000,000 on its 2017 in-come statement and income taxes payable of $277,000,000 at December 31, 2016, and $528,000,000 at December 31, 2017. What amount of cash payments were made for in-come taxes during

> On October 5, Iverson Company buys merchandise on account from Lasse Company. The selling price of the goods is $5,000, and the cost to Lasse Company is $3,000. On October 8, Iverson returns defective goods with a selling price of $640 and a scrap value

> Cabo Corporation reported net income of $346,000, cash of $67,800, and net cash provided by operating activities of $221,200. What does this suggest about the quality of the company’s earnings? What further steps should be taken?

> Suppose Columbia Sportswear Company had accounts receivable of $299,585,000 at January 1, 2017, and $226,548,000 at December 31, 2017. Assume sales revenue was $1,244,023,000 for the year 2017. What is the amount of cash receipts from customers in 2017?

> Garten Corporation reported net sales $800,000, cost of goods sold $520,000, operating expenses $210,000, and net income $68,000. Calculate the following values and explain what they mean: (a) profit margin and (b) gross profit rate.

> Scribe Company reports net sales of $800,000, gross profit of $560,000, and net income of $230,000. What are its operating expenses?

> The trial balance of Mendez Company at the end of its fiscal year, August 31, 2017, includes these accounts: Beginning Inventory $18,700, Purchases $154,000, Sales Revenue $190,000, Freight-In $8,000, Sales Returns and Allowances $3,000, Freight-Out $1,0

> Dublin Corporation reported net sales of $250,000, cost of goods sold of $150,000, operating expenses of $50,000, net income of $32,500, beginning total assets of $520,000, and ending total assets of $600,000. Calculate each of the following values and e

> Suppose Canwest Global Communications Corp. reported net cash used by operating activities of $104,539,000 and sales revenue of $2,867,459,000 during 2017. Cash spent on plant asset additions during the year was $79,330,000. Calculate free cash flow.

> Here is the income statement for Myers, Inc. Additional information: 1. Common stock outstanding January 1, 2017, was 32,000 shares, and 40,000 shares were outstanding at December 31, 2017. 2. The market price of Myers stock was $14 in 2017. 3. Cash div

> Assume the same information as in BE5-9 and also that Spacey Company has beginning inventory of $60,000, ending inventory of $90,000, and net sales of $612,000. Determine the amounts to be reported for cost of goods sold and gross profit. Data from BE5-9

> SUPERVALU, one of the largest grocery retailers in the United States, is head-quartered in Minneapolis. Suppose the following financial information (in millions) was taken from the company’s 2017 annual report: net sales $44,597, net income $393, beginni

> Presented here are the components in Salas Company’s income statement. Determine the missing amounts. Sales Cost of Gross Operating Expenses (d) (e) $46,200 Net Goods Sold Revenue $ 71,200 $108,000 (a) Profit $ 30,000 (c) $109,600 I

> Suppose these selected condensed data are taken from recent balance sheets of Bob Evans Farms (in thousands). Compute the current ratio for each year and comment on your results. 2017 2016 $ 13,606 $ 7,669 19,951 31,345 11,909 Cash Accounts receivab

> Sprouts Corporation reported net cash provided by operating activities of $412,000, net cash used by investing activities of $250,000, and net cash provided by financing activities of $70,000. In addition, cash spent for capital assets during the period

> Information for two companies in the same industry, Merrill Corporation and Wingate Corporation, is presented here. Instructions Compute free cash flow for both companies and compare. Merrill Wingate Corporation Corporation $ 80,000 Net cash provided

> Tascon Corporation sells coffee beans, which are sensitive to price fluctuations. The following inventory information is available for this product at December 31, 2017. Instructions Calculate Tascon’s inventory by applying the lower-o

> In its income statement for the year ended December 31, 2017, Laine Inc. reported the following condensed data. Instructions (a) Prepare an income statement. (b) Prepare a comprehensive income statement. $ 725,000 Operating expenses Cost of goods so

> Assume that Spacey Company uses a periodic inventory system and has these account balances: Purchases $404,000, Purchase Returns and Allowances $13,000, Purchase Discounts $9,000, and Freight-In $16,000. Determine net purchases and cost of goods purchase

> Ravine Company issues $400,000, 20-year, 7% bonds at 101. Prepare the journal entry to record the sale of these bonds on June 1, 2017.

> Suppose the following is 2017 information for PepsiCo, Inc. and The Coca-Cola Company. Instructions Compute free cash flow for both companies and compare. ($ in millions) Coca-Cola Pepsico $ 6,796 8,772 5,979 43,232 2,128 2,732 $ 8,186 Net cash provi

> Suppose during 2017 that Cypress Semiconductor Corporation reported net cash provided by operating activities of $89,303,000, cash used in investing of $43,126,000, and cash used in financing of $7,368,000. In addition, cash spent for fixed assets during

> Digital Camera Shop Inc. uses the lower-of-cost-or-market basis for its inventory. The following data are available at December 31. Instructions What amount should be reported on Digital Camera Shop’s financial statements, assuming the

> Hana Ascot is planning to start a business. Identify for Hana the advantages and disadvantages of the corporate form of business organization.

> Winnebago Industries, Inc. is a leading manufacturer of motor homes. Suppose Winnebago reported ending inventory at August 29, 2017, of $46,850,000 under the LIFO inventory method. In the notes to its financial statements, assume Winnebago reported a LIF

> Suppose in its income statement for the year ended June 30, 2017, The Clorox Company reported the following condensed data (dollars in millions). Instructions (a) Prepare a multiple-step income statement. (b) Calculate the gross profit rate and the prof

> Silas Company sold goods with a total selling price of $800,000 during the year. It purchased goods for $380,000 and had beginning inventory of $67,000. A count of its ending inventory determined that goods on hand was $50,000. What was its cost of goods

> Bridle Inc. issues $300,000, 10-year, 8% bonds at 98. Prepare the journal entry to record the sale of these bonds on March 1, 2017.

> (a) If Erin Company had net income of $300,000 in 2016 and it experienced a 24.5% increase in net income for 2017, what is its net income for 2017? (b) If 6 cents of every dollar of Erin’s revenue is net income in 2016, what is the dollar amount of 2016

> Suppose at December 31 of a recent year, the following information (in thousands) was available for sunglasses manufacturer Oakley, Inc.: ending inventory $155,377, beginning inventory $119,035, cost of goods sold $349,114, and sales revenue $761,865. Ca

> A credit sale is made on July 10 for $900, terms 1/15, n/30. On July 12, the purchaser returns $100 of goods for credit. Give the journal entry on July 19 to record the receipt of the balance due within the discount period.

> In its income statement for the year ended December 31, 2017, Darren Company reported the following condensed data. Instructions (a) Prepare a multiple-step income statement. (b) Calculate the profit margin and gross profit rate. (c) In 2016, Darren had

> The following information relates to Karen Weigel Inc. for the year 2017. After analyzing the data, (a) compute net income and (b) prepare a comprehensive income statement for the year ending December 31, 2017. $ 1,800 Retained earnings, January 1,

> Data for Betsy Strand are presented in BE10-5(given below). Prepare the employer’s journal entry to record payroll taxes for the period. Ignore unemployment taxes. Data from BE10-5: Betsy Strand’s regular hourly wage rate is $16, and she receives an hour

> The financial statements of Louis Vuitton are presented in Appendix F. Instructions for accessing and using the company’s complete annual report, including the notes to its financial statements, are also provided in Appendix F. Instructions Use the compa

> If Coho Company had net income of $382,800 in 2017 and it experienced a 16% increase in net income over 2016, what was its 2016 net income?

> Wahlowitz Video Center accumulates the following cost and market data at December 31. Compute the lower-of-cost-or-market valuation for the company’s inventory. Inventory Categories Cost Market Data Data Cameras $12,500 9,000 13,000

> Financial information is presented here for two companies. Instructions (a) Fill in the missing amounts. Show all computations. (b) Calculate the profit margin and the gross profit rate for each company. (c) Discuss your findings in part (b). Yoste N

> Explain where each of these items would appear on a multiple-step income statement: gain on disposal of plant assets, cost of goods sold, depreciation expense, and sales returns and allowances.

> Net income was $500,000 in 2015, $485,000 in 2016, and $518,400 in 2017. What is the percentage of change from (a) 2015 to 2016, and (b) from 2016 to 2017? Is the change an increase or a decrease?

> Presented below is information for Lieu Co. for the month of January 2017. Instructions (a) Prepare an income statement using the format presented in Illustration 5-11. (b) Prepare a comprehensive income statement. (c) Calculate the profit margin and the

> Barto Company provides this information for the month ended October 31, 2017: sales on credit $300,000, cash sales $150,000, sales discounts $5,000, and sales returns and allowances $19,000. Prepare the sales section of the income statement based on this

> Basse Corporation has 7,000 shares of common stock outstanding. It declares a $1 per share cash dividend on November 1 to stockholders of record on December 1. The dividend is paid on December 31. Prepare the entries on the appropriate dates to record th

> Waymon Co. has net sales of $100,000, cost of goods sold of $70,000, and operating expenses of $18,000. What is its gross profit?

> The adjusted trial balance of Doqe Company shows these data pertaining to sales at the end of its fiscal year, October 31, 2017: Sales Revenue $900,000, Freight-Out $14,000, Sales Returns and Allowances $22,000, and Sales Discounts $13,500. Instructions

> On June 30, Flores Corporation discontinued its operations in Mexico. On September 1, Flores disposed of the Mexico facility at a pretax loss of $640,000. The applicable tax rate is 25%. Show the discontinued operations section of Flores’s statement of c

> Clean Lake Corporation’s accounting records show the following at year-end December 31, 2017: Assuming that Clean Lake Corporation uses the periodic system, compute (a) cost of goods purchased and (b) cost of goods sold. $ 5,900 8,

> From the information in BE5-3, prepare the journal entries to record these transactions on McLeena Company’s books under a perpetual inventory system. Information from BE5-3: (a) On March 2, Borst Company sold $800,000 of merchandise to McLeena Company,

> Layes Inc. issues 8,000 shares of $100 par value preferred stock for cash at $106 per share. Journalize the issuance of the preferred stock.

> Carolina University sold 9,000 season football tickets at $100 each for its five-game home schedule. What entries should be made (a) when the tickets are sold and (b) after each game?

> What amount did Apple report as “Other comprehensive earnings” in its consolidated statement of comprehensive income ending September 27, 2014? By what percentage did Apple’s “Comprehensive income” differ from its “Net income”?

> (a) Explain the income measurement process in a merchandising company. (b) How does income measurement differ between a merchandising company and a service company?