Questions from General Accounting

Q: Rad Co. provides the following sales forecast and production budget for

Rad Co. provides the following sales forecast and production budget for the next four months: The company plans for finished goods inventory of 120 units at the end of June. In addition, each finish...

Q: Dave Krug finances a new automobile by paying $6,500

Dave Krug finances a new automobile by paying $6,500 cash and agreeing to make 40 monthly payments of $500 each, the first payment to be made one month after the purchase. The loan bears interest at a...

Q: C&H Ski Club recently borrowed money and agrees to pay

C&H Ski Club recently borrowed money and agrees to pay it back with a series of six annual payments of $5,000 each. C&H subsequently borrows more money and agrees to pay it back with a series...

Q: Otto Co. borrows money on April 30, 2015, by

Otto Co. borrows money on April 30, 2015, by promising to make four payments of $13,000 each on November 1, 2015; May 1, 2016; November 1, 2016; and May 1, 2017. 1. How much money is Otto able to borr...

Q: Spiller Corp. plans to issue 10%, 15-year,

Spiller Corp. plans to issue 10%, 15-year, $500,000 par value bonds payable that pay interest semiannually on June 30 and December 31. The bonds are dated December 31, 2015, and are issued on that dat...

Q: Electro Company budgets production of 450,000 transmissions in the second

Electro Company budgets production of 450,000 transmissions in the second quarter and 520,000 transmissions in the third quarter. Each transmission requires 0.80 pounds of a key raw material. Electro...

Q: Blue Wave Co. predicts the following unit sales for the coming

Blue Wave Co. predicts the following unit sales for the coming four months: September, 4,000 units; October, 5,000 units; November, 7,000 units; and December, 7,600 units. The company’s policy is to m...

Q: MCO Leather Goods manufactures leather purses. Each purse requires 2 pounds

MCO Leather Goods manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $4 per pound and 0.8 direct labor hours at a rate of $16 per hour. Variable manufacturing o...

Q: Ornamental Sculptures Mfg. manufactures garden sculptures. Each sculpture requires 8

Ornamental Sculptures Mfg. manufactures garden sculptures. Each sculpture requires 8 pounds of direct materials at a cost of $3 per pound and 0.5 direct labor hours at a rate of $18 per hour. Variable...

Q: Starr Company decides to establish a fund that it will use 10

Starr Company decides to establish a fund that it will use 10 years from now to replace an aging production facility. The company will make a $100,000 initial contribution to the fund and plans to mak...