Questions from General Accounting

Q: Fredonia Inc. had a bad year in 2013. For the

Fredonia Inc. had a bad year in 2013. For the first time in its history, it operated at a loss. The company’s income statement showed the following results from selling 80,000 units...

Q: Lorge Corporation has collected the following information after its first year of

Lorge Corporation has collected the following information after its first year of sales. Sales were $1,500,000 on 100,000 units; selling expenses $250,000 (40% variable and 60% fixed); direct material...

Q: Tanek Industries manufactures and sells three different models of wet-dry

Tanek Industries manufactures and sells three different models of wet-dry shop vacuum cleaners. Although the shop vacs vary in terms of quality and features, all are good sellers. Tanek is currently o...

Q: : The Hillside Inn is a restaurant in Flagstaff, Arizona.

The Hillside Inn is a restaurant in Flagstaff, Arizona. It specializes in southwestern style meals in a moderate price range. Phil Weld, the manager of Hillside, has determined that during the last 2...

Q: The following CVP income statements are available for Viejo Company and Nuevo

The following CVP income statements are available for Viejo Company and Nuevo Company. Instructions: (a) Compute the break-even point in dollars and the margin of safety ratio for each company. (b)...

Q: Bonita Beauty Corporation manufactures cosmetic products that are sold through a network

Bonita Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission of 18% of sales. The income statement for the year ending Dec...

Q: Gardner Company produces plastic that is used for injection-molding applications

Gardner Company produces plastic that is used for injection-molding applications such as gears for small motors. In 2013, the first year of operations, Gardner produced 4,000 tons of plastic and sold...

Q: Sanderson Company has the following production data for March: no beginning

Sanderson Company has the following production data for March: no beginning work in process, units started and completed 30,000, and ending work in process 5,000 units that are 100% complete for mater...

Q: Dilithium Batteries is a division of Enterprise Corporation. The division manufactures

Dilithium Batteries is a division of Enterprise Corporation. The division manufactures and sells a long-life battery used in a wide variety of applications. During the coming year, it expects to sell...

Q: Pedriani Company uses a job order cost system and applies overhead to

Pedriani Company uses a job order cost system and applies overhead to production on the basis of direct labor hours. On January 1, 2014, Job No. 25 was the only job in process. The costs incurred prio...