Questions from General Accounting

Q: Silicone Engine Inc. produces wrist-worn tablet computers. The

Silicone Engine Inc. produces wrist-worn tablet computers. The company uses Thin Film Crystal (TFC) LCD displays for its products. Each tablet uses one display. The company produced 580 tablets during...

Q: What document is the source for (a) debiting the

What document is the source for (a) debiting the accounts in the materials ledger and (b) crediting the accounts in the materials ledger?

Q: On the basis of the following data, the general manager of

On the basis of the following data, the general manager of Foremost Footwear Inc. decided to discontinue Children’s Shoes because it reduced income from operations by $10,000. What i...

Q: Munch N’ Crunch Snack Company is considering two possible investments: a

Munch N’ Crunch Snack Company is considering two possible investments: a delivery truck or a bagging machine. The delivery truck would cost $43,056 and could be used to deliver an ad...

Q: Diamond Computer Company has been purchasing carrying cases for its portable computers

Diamond Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $59 per unit. The company, which is currently operating below full capacity, charges facto...

Q: The Theater Arts Guild of Dallas (TAG-D) employs

The Theater Arts Guild of Dallas (TAG-D) employs five people in its Publication Department. These people lay out pages for pamphlets, brochures, magazines, and other publications for the TAG-D product...

Q: A company is considering replacing an old piece of machinery, which

A company is considering replacing an old piece of machinery, which cost $105,000 and has $55,000 of accumulated depreciation to date, with a new machine that has a purchase price of $83,000. The old...

Q: Kim Kwon Digital Components Company assembles circuit boards by using a manually

Kim Kwon Digital Components Company assembles circuit boards by using a manually operated machine to insert electronic components. The original cost of the machine is $60,000, the accumulated deprecia...

Q: Big Fork Lumber Company incurs a cost of $402 per hundred

Big Fork Lumber Company incurs a cost of $402 per hundred board feet (hbf) in processing certain “rough-cut” lumber, which it sells for $540 per hbf. An alternative is to produce a “finished cut” at a...

Q: Rise N’ Shine Coffee Company produces Columbian coffee in batches of 6

Rise N’ Shine Coffee Company produces Columbian coffee in batches of 6,000 pounds. The standard quantity of materials required in the process is 6,000 pounds, which cost $5.50 per pound. Columbian cof...