Questions from General Accounting

Q: On October 1, White Way Stores Inc. is considering leasing

On October 1, White Way Stores Inc. is considering leasing a building and purchasing the necessary equipment to operate a retail store. Alternatively, the company could use the funds to invest in $180...

Q: MatchPoint Racket Company manufactures two types of tennis rackets, the Junior

MatchPoint Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models. The production budget for March for the two rackets is as follows: Both rackets are produced in...

Q: Ambassador Suites Inc. operates a downtown hotel property that has 300

Ambassador Suites Inc. operates a downtown hotel property that has 300 rooms. On aver - age, 80% of Ambassador Suites’ rooms are occupied on weekdays and 40% are occupied during the weekend. The manag...

Q: Levi Strauss & Co. manufactures slacks and jeans under a variety

Levi Strauss & Co. manufactures slacks and jeans under a variety of brand names, such as Dockers ® and 501 ® Jeans. Slacks and jeans are assembled by a variety of different s...

Q: Sweet Tooth Candy Company budgeted the following costs for anticipated production for

Sweet Tooth Candy Company budgeted the following costs for anticipated production for August: Prepare a factory overhead cost budget, separating variable and fixed costs. Assume that fac...

Q: The following is a list of costs that were incurred in the

The following is a list of costs that were incurred in the production and sale of lawn mowers: a. Premiums on insurance policy for factory buildings b. Tires for lawn mowers c. Filter for spray gun...

Q: Wilmington Chemical Company uses oil to produce two types of plastic products

Wilmington Chemical Company uses oil to produce two types of plastic products, P1 and P2. Wilmington budgeted 50,000 barrels of oil for purchase in June for $50 per barrel. Direct labor budgeted in th...

Q: The controller of MingWare Ceramics Inc. wants to prepare a cost

The controller of MingWare Ceramics Inc. wants to prepare a cost of goods sold budget for September. The controller assembled the following information for constructing the cost of goods sold budget:...

Q: Furry Friends Supplies Inc., a pet wholesale supplier, was organized

Furry Friends Supplies Inc., a pet wholesale supplier, was organized on May 1. Projected sales for each of the first three months of operations are as follows: May ………$156,000 June ………. 175,000 July...

Q: Office World Inc. has “cash and carry” customers and

Office World Inc. has “cash and carry” customers and credit customers. Office World estimates that 25% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the...