Questions from General Accounting

Q: Zilly Co. predicts sales of $400,000 for June

Zilly Co. predicts sales of $400,000 for June. Zilly pays a sales manager a monthly salary of $6,000 and a commission of 8% of sales dollars. Prepare a selling expense budget for the month of June.

Q: Hotwax makes surfboard wax in a single operation. This period,

Hotwax makes surfboard wax in a single operation. This period, Hotwax purchased $62,000 in raw materials. Its production department requisitioned $50,000 of those materials for use in production. Prep...

Q: Prepare journal entries to record the following production activities for Hotwax.

Prepare journal entries to record the following production activities for Hotwax. 1. Incurred direct labor of $125,000 (credit Factory Payroll Payable). 2. Incurred indirect labor of $10,000 (credit F...

Q: Following are selected accounts for a company. For each account,

Following are selected accounts for a company. For each account, indicate whether it will appear on a budgeted income statement (BIS) or a budgeted balance sheet (BBS). If an item will not appear on e...

Q: Hotwax completed products costing $275,000 and transferred them to

Hotwax completed products costing $275,000 and transferred them to finished goods. Prepare its journal entry to record the transfer of units from production to finished goods inventory

Q: Gordands purchased $600,000 of merchandise in August and expects

Gordands purchased $600,000 of merchandise in August and expects to purchase $720,000 in September. Merchandise purchases are paid as follows: 25% in the month of purchase and 75% in the following mon...

Q: A company’s shipping division (an investment center) has sales of

A company’s shipping division (an investment center) has sales of $2,420,000, net income of $516,000, and average invested assets of $2,250,000. Compute the division’s profit margin and investment tur...

Q: Walt Disney reports the following information for its two Parks and Resorts

Walt Disney reports the following information for its two Parks and Resorts divisions. Assume Walt Disney uses a balanced scorecard and sets a target of 85% occupancy in its resorts. Using Exhibit 2...

Q: Mervon Company has two operating departments: mixing and bottling. Mixing

Mervon Company has two operating departments: mixing and bottling. Mixing has 300 employees and occupies 22,000 square feet. Bottling has 200 employees and occupies 18,000 square feet. Indirect factor...

Q: Compute and interpret (a) manufacturing cycle time and

Compute and interpret (a) manufacturing cycle time and (b) manufacturing cycle efficiency using the following information from a manufacturing company.