Questions from General Accounting

Q: Hill Company uses budgets in controlling costs. The August 2014

Hill Company uses budgets in controlling costs. The August 2014 budget report for the company’s Assembling Department is as follows.The monthly budget amounts in the report were base...

Q: Gutierrez Company has four operating divisions. During the first quarter

Gutierrez Company has four operating divisions. During the first quarter of 2014, the company reported aggregate income from operations of $213,000 and the following divisional results.Discontinuance...

Q: Jorgensen Corporation uses standard costs with its job order cost

Jorgensen Corporation uses standard costs with its job order cost accounting system. In January, an order (Job No. 12) for 1,900 units of Product B was received. The standard cost of one unit of Produ...

Q: Henkel Company is considering three long-term capital investment proposals. Each

Henkel Company is considering three long-term capital investment proposals. Each investment has a useful life of 5 years. Relevant data on each project are as follows.Depreciation is computed by the s...

Q: Jane’s Auto Care is considering the purchase of a new

Jane’s Auto Care is considering the purchase of a new tow truck. The garage doesn’t currently have a tow truck, and the $60,000 price tag for a new truck would represent a major expenditure. Jane Aust...

Q: Mercer Farm Supply Company manufactures and sells a fertilizer called

Mercer Farm Supply Company manufactures and sells a fertilizer called Basic II. The following data are available for preparing budgets for Basic II for the first 2 quarters of 2014.1. Sales: quarter 1...

Q: Huang Company uses a standard cost accounting system to account

Huang Company uses a standard cost accounting system to account for the manufacture of exhaust fans. In July 2014, it accumulates the following data relative to 1,800 units started and finished.Manufa...

Q: The Borders and Noble partnership is considering three long-term capital

The Borders and Noble partnership is considering three long-term capital investment proposals. Each investment has a useful life of 5 years. Relevant data on each project are as follows.Depreciation i...

Q: Isaac’s Auto Repair is considering the purchase of a new

Isaac’s Auto Repair is considering the purchase of a new tow truck. The garage doesn’t currently have a tow truck, and the $65,000 price tag for a new truck would represent a major expenditure for the...

Q: The Bonita Inn is trying to determine its break-even point.

The Bonita Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at $60 a night. Operating costs are as follows.Salaries………………………………………………….8800Utilities………………………………………...