Question 13.13.Wings Co. budgeted $555,600 manufacturing direct wages, 2,315 direct labor hours, and had the following manufacturing overhead:
Overhead Cost Pool - Budgeted O/H $ - Budgeted Level for Cost Driver - O/H Cost Driver Materials Handling $160,000 3,200 lbs. Material Weight Machine Setup 13,200 390 S/U’s # of S/Us Machine Repair 1,380 30,000 Mach. Hrs Machine Hrs. Inspections 10,560 160 Inspections # of Inspections Requirements for Job #971 which included 4 Units of Production: D/L Hours = 20 Hours D/Mat’ls = 130 lbs. Machine S/U = 30 Set-ups Machine Hrs. = 15,000 Machine Hours Inspections = 15 Inspections.
Using ABC, the materials handling overhead cost assigned to Job #971 is: (Points : 2) |
$2,300. $990. $6,500. $690. $1,020.
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Question 14.14.Randall Company manufactures products to customer specifications. A job costing system is used to accumulate production costs. Factory overhead cost was applied at 125% of direct labor cost. Selected data concerning the past year's operation of the company are presented below.
Direct Materials January 1 = $77,000 Direct Materials December 31 = 40,000 WIP January 1 = 66,000 WIP December 31 = 42,000 Finished Goods January 1 = 115,000 Finished Goods December 31 = 100,000
Other Information: Direct Materials Purchased = $324,000 Cost of Goods Available for Sale = 950,000 Actual Factory Overhead = 206,000
The cost of goods manufactured during the year is: (Points : 2) |
$850,000. $348,000. $672,000. $835,000. $811,000.
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Question 35.35.In September, Larson Inc. sold 40,000 units of its only product for $240,000 and incurred a total cost of $225,000, of which $25,000 is fixed costs. The flexible budget for September showed total sales of $300,000. Among variances of the period were: total variable cost flexible-budget variance, $8,000U; total flexible-budget variance, $63,000U; and, sales volume variance, in terms of contribution margin, $27,000U
The actual amount of operating income earned in September was: (Points : 2) |
$15,000. $40,000. $63,000. $78,000. $105,000.
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Question 48.48.The King Mattress Company had the following operating results for 2012-2013. In addition, the company paid dividends in both 2012 and 2013 of $60,000 per year and made capital expenditures in both years of $30,000 per year. The company's stock price in 2012 was $8 and $7 in 2013. The industry average earnings multiple for the mattress industry was 9 in 2013 and the free cash flow and sales multiples were 18 and 1.5, respectively. The company is publicly owned and has 1,200,000 shares of outstanding stock at the end of 2013.
Balance Sheet, December 31 2013 2012 Cash $ 340,000 $ 100,000 Accounts Receivable 350,000 400,000 Inventory 250,000 300,000 Total Current Assets $ 940,000 $ 800,000 Long Lived Assets 1,080,000 1,100,000 Total Assets $ 2,020,000 $ 1,900,000 Current Liabilities $ 200,000 $ 300,000 Long-Term Liabilities 600,000 500,000 Stockholder’s Equity 1,220,000 1,100,000 Total Liabilities & Equity $ 2,020,000 $ 1,900,000 Income Statement for the Year Ended December 31 Sales $ 4,750,000 $ 4,500,000 Cost of Sales 4,100,000 4,000,000 Gross Margin $ 650,000 $ 500,000 Operating Expenses 350,000 400,000 Operating Income $ 300,000 $ 100,000 Taxes 120,000 40,000 Net Income $ 180,000 $ 60,000 Cash Flow from Operations Net Income $ 180,000 $ 60,000 Plus Depreciation Expense 50,000 50,000 +Decrease (-Inc) in A/T and Inventory 100,000 - 0 - +Increase (-Dec) in Current Liabilities (100,000) - 0 – Cash Flow from Operations $ 230,000 $ 110,000
The current ratio for 2013 is: (Points : 2) |
1.8 2.0 3.9 4.7
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Question 49.49.The King Mattress Company had the following operating results for 2012-2013. In addition, the company paid dividends in both 2012 and 2013 of $60,000 per year and made capital expenditures in both years of $30,000 per year. The company's stock price in 2012 was $8 and $7 in 2013. The industry average earnings multiple for the mattress industry was 9 in 2013 and the free cash flow and sales multiples were 18 and 1.5, respectively. The company is publicly owned and has 1,200,000 shares of outstanding stock at the end of 2013.
Balance Sheet, December 31 2013 2012 Cash $ 340,000 $ 100,000 Accounts Receivable 350,000 400,000 Inventory 250,000 300,000 Total Current Assets $ 940,000 $ 800,000 Long Lived Assets 1,080,000 1,100,000 Total Assets $ 2,020,000 $ 1,900,000 Current Liabilities $ 200,000 $ 300,000 Long-Term Liabilities 600,000 500,000 Stockholder’s Equity 1,220,000 1,100,000 Total Liabilities & Equity $ 2,020,000 $ 1,900,000
Income Statement for the Year Ended December 31 Sales $ 4,750,000 $ 4,500,000 Cost of Sales 4,100,000 4,000,000 Gross Margin $ 650,000 $ 500,000 Operating Expenses 350,000 400,000 Operating Income $ 300,000 $ 100,000 Taxes 120,000 40,000 Net Income $ 180,000 $ 60,000
Cash Flow from Operations Net Income $ 180,000 $ 60,000 Plus Depreciation Expense 50,000 50,000 +Decrease (-Inc) in A/T and Inventory 100,000 - 0 - +Increase (-Dec) in Current Liabilities (100,000) - 0 – Cash Flow from Operations $ 230,000 $ 110,000
The inventory turnover ratio for 2013 is (rounded): (Points : 2) |
11.2 12.7 13.7 14.9
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