Questions from Accounting Principles

Q: Cobe Co. has manufactured 200 partially finished cabinets at a cost

Cobe Co. has manufactured 200 partially finished cabinets at a cost of $50,000. These can be sold as is for $60,000. Instead, the cabinets can be stained and fitted with hardware to make finished cabi...

Q: A company must decide between scrapping or reworking units that do not

A company must decide between scrapping or reworking units that do not pass inspection. The company has 22,000 defective units that have already cost $132,000 to manufacture. The units can be sold as...

Q: Colt Company produces two skateboard models. Machine time per unit for

Colt Company produces two skateboard models. Machine time per unit for Hero is two hours and for Flip is one hour. The machine’s capacity is 1,600 hours per year. Colt can sell up to...

Q: Chip Company produces three products, Kin, Ike, and Bix

Chip Company produces three products, Kin, Ike, and Bix. Each product uses the same direct material. Kin uses 4 pounds of the material, Ike uses 3 pounds of the material, and Bix uses 6 pounds of the...

Q: Marin Company makes several products, including canoes. The company reports

Marin Company makes several products, including canoes. The company reports a loss from its canoe segment (see below). All its variable costs are avoidable, and $300,000 of its fixed costs are avoidab...

Q: Lopez Co. is considering replacing one of its old manufacturing machines

Lopez Co. is considering replacing one of its old manufacturing machines. The old machine has a book value of $45,000 and a remaining useful life of five years. It can be sold now for $52,000. Variabl...

Q: Skull Co. makes snowboards and uses the total cost method in

Skull Co. makes snowboards and uses the total cost method in setting product price. Its costs for producing 10,000 units follow. The company targets a 12.5% markup on total cost. 1. Compute the total...

Q: Fill in each of the following T-accounts for Belle Co

Fill in each of the following T-accounts for Belle Co.’s seven transactions listed here. The T-accounts represent Belle Co.’s general ledger. Code each entry with t...

Q: Use information from Exercise 2-17 to prepare the general journal

Use information from Exercise 2-17 to prepare the general journal entries for Belle Co.’s first seven transactions.

Q: Chase Company posted transactions (a through f) in the following

Chase Company posted transactions (a through f) in the following T-accounts in December, its first month of operations. Prepare the six journal entries from which the postings were made.