Questions from General Accounting

Q: Zipp Cards buys baseball cards in bulk from the companies that produce

Zipp Cards buys baseball cards in bulk from the companies that produce them. Zipp buys sheets of 48 cards, then cuts the sheets into individual cards, and sorts and packages them, usually by team. Zip...

Q: Mickles Ltd. uses a standard cost system. In June,

Mickles Ltd. uses a standard cost system. In June, Mickles’ direct labor efficiency variance was $1,470 U and its direct labor rate variance was $825 F. Mickles manufactured 460 batches of product in...

Q: Prior to the Securities Acts of 1933 and 1934, corporations with

Prior to the Securities Acts of 1933 and 1934, corporations with publicly traded stock were not required to issue financial statements, yet many voluntarily issued income statements and balance sheets...

Q: The MRI department at Community Hospital, a large urban health center

The MRI department at Community Hospital, a large urban health center, performs magnetic resonance imaging for heart disease, brain disorders, and total body scans for the various patient care units (...

Q: A new pharmaceutical drug calls for 4.5 ounces of compound

A new pharmaceutical drug calls for 4.5 ounces of compound AN7-X1 per batch of 250 tablets. AN7- X1 has a standard price of $2 per ounce. An initial inventory of 8,000 ounces of AN7-X1 is purchased fo...

Q: The coating department of a parts manufacturing department coats various parts with

The coating department of a parts manufacturing department coats various parts with an antirust, zinc based material. The parts to be processed are loaded into baskets; the baskets are passed through...

Q: News.com is a Web site that offers users access to

News.com is a Web site that offers users access to current national and international news stories. News.com does not charge users a fee for accessing the site, but rather charges advertisers $0.05 pe...

Q: The Bartolotta Company had an overabsorbed overhead balance at year-end

The Bartolotta Company had an overabsorbed overhead balance at year-end. The firm wrote off one-third of it to Cost of Goods Sold, thereby raising net income by $100,000, and the remainder was charged...

Q: Watson’s Bay Co. is considering a contract to manufacture didgeridoos.

Watson’s Bay Co. is considering a contract to manufacture didgeridoos. Producing didgeridoos will require an investment in equipment of $100,000 and operating costs of $15 per didgeridoo produced. The...

Q: Sunstar sells a full line of small home kitchen appliances, including

Sunstar sells a full line of small home kitchen appliances, including toasters, coffee makers, blenders, and bread machines. It is organized into a marketing division and a manufacturing division. The...