Question: Meagher Solutions Inc. manufactures memory chips

> We-Sell Realty, organized as a corporation on August 1, 2018, is owned and operated by Omar Farah, the sole stockholder. How many errors can you find in the following statements for We-Sell Realty, prepared after its first month of operations? We-

> A summary of cash flows for Ethos Consulting Group for the year ended May 31, 2018, follows: Cash receipts: Cash received from customers………………………………….$637,500 Cash received from issuing common stock…………………….62,500 Cash payments: Cash paid for operating

> On September 12, 2,000 shares of Aspen Company were acquired at a price of $50 per share plus a $200 brokerage commission. On October 15, a $0.50-per-share dividend was received on the Aspen stock. On November 10, 1,200 shares of the Aspen stock were sol

> Parilo Company acquired $170,000 of Makofske Co., 5% bonds on May 1, 20Y5, at their face amount. Interest is paid semiannually on May 1 and November 1. On November 1, 20Y5, Parilo sold $50,000 of the bonds for 96. Journalize the entries to record the fol

> Identify the errors in the following trial balance. All accounts have normal balances. Ensemble Co. Unadjusted Trial Balance For the Year Ending December 31, 2018 Debit Balances Credit Balances Cash 42,900 Accounts Receivable. 123,500 Prepaid Insura

> Imaging Services was organized on March 1, 2018. A summary of the revenue and expense transactions for March follows: Fees earned………………………………..$482,000 Wages expense……………………………..300,000 Rent expense…………………………………..41,500 Supplies expense………………………………3,600

> Feeling Better Medical Inc., a manufacturer of disposable medical supplies, prepared the following factory overhead cost budget for the Assembly Department for October of the current year. The company expected to operate the department at 100% of normal

> Based on the data presented in Exercise 1-16, identify those items that would appear on the income statement. Data from Exercise 1-16: From the following list of selected items taken from the records of Bobcat Appliance Service as of a specific date, i

> The accounts in the ledger of Atlantic Furniture Company as of July 2018 are listed in alphabetical order as follows. All accounts have normal balances. The balance of the cash account has been intentionally omitted. Prepare an unadjusted trial balance

> Based upon the data presented in Exercise 2-13, (A) prepare an unadjusted trial balance, listing the accounts in their proper order. (B) Based upon the unadjusted trial balance, determine the net income or net loss. Data from Exercise 2-13: Napa Tours

> Based upon the T accounts in Exercise 2-13, prepare the nine journal entries from which the postings were made. Journal entry explanations may be omitted. Data from Exercise 2-13: Napa Tours Co. is a travel agency. The nine transactions recorded by Nap

> Napa Tours Co. is a travel agency. The nine transactions recorded by Napa Tours during April 2018, its first month of operations, are indicated in the following T accounts: Indicate for each debit and each credit: (A) whether an asset, liability, stock

> The investments of Steelers Inc. include a single investment: 33,100 shares of Bengals Inc. common stock purchased on September 12, 20Y7, for $13 per share including brokerage commission. These shares were classified as available-for-sale securities. As o

> At the end of July, the first month of the business year, the usual adjusting entry transferring rent earned to a revenue account from the unearned rent account was omitted. Indicate which items will be incorrectly stated, because of the error, on (A) th

> The following table summarizes the rules of debit and credit. For each of the items A through L, indicate whether the proper answer is a debit or a credit. Increase Decrease Normal Balance Balance sheet accounts: Asset A B Debit Liability Stockholde

> On January 4, 20Y6, Spandella Company purchased 175,000 shares of Filington Company directly from one of the founders for a price of $30 per share. Filington has 500,000 shares outstanding, including the Spandella shares. On July 2, 20Y6, Filington paid

> Seamus Industries Inc. buys and sells investments as part of its ongoing cash management. The following investment transactions were completed during the year: Feb. 24. Acquired 1,000 shares of Tett Co. stock for $85 per share plus a $150 brokerage commi

> As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1, 20Y9, the following tentative trial balance as of December 31, 20Y8, is prepared by the Accounting Department of Mesa Publishing Co.:

> Innerscape Interiors is owned and operated by Jackie Vargo, an interior decorator. In the ledger of Innerscape Interiors, the first digit of the account number indicates its major account classification (1—assets, 2—liabilities, 3—stockholders’ equity, 4

> A. A vacant lot acquired for $115,000 is sold for $298,000 in cash. What is the effect of the sale on the total amount of the seller’s (1) assets, (2) liabilities, and (3) stockholders’ equity? B. Assume that the seller owes $80,000 on a loan for the lan

> The investments of Charger Inc. include a single investment: 14,500 shares of Raiders Inc. common stock purchased on February 24, 20Y1, for $38 per share including brokerage commission. These shares were classified as trading securities. As of the Decembe

> Indicate whether each of the following is identified with (1) an asset, (2) a liability, or (3) stockholders’ equity: A. accounts payable B. cash C. fees earned D. land E. supplies F. wages expense

> Identify the errors in the following schedule of the cost of goods sold for the year ended May 31, 2018: Cost of goods sold: Inventory, May 31, 2018 .. Cost of merchandise purchased: $ 105,000 ...... Purchases $1,110,000 Purchases returns and allowa

> Based on the following data, determine the cost of goods sold for July: Estimated returns of July sales…………………$ 34,900 Inventory, July 1…………………………………………190,850 Inventory, July 31………………………………………..160,450 Purchases…………………………………………………1,126,000 Purchases re

> Based on the following data, determine the cost of goods sold for November: Estimated returns of November sales……………$ 14,500 Inventory, November……………………………………1 28,000 Inventory, November…………………………………..30 31,500 Purchases………………………………………………………475,000 Purc

> The following data were extracted from the accounting records of Harkins Company for the year ended April 30, 2018: Estimated returns of current year sales……………………………….$ 11,600 Inventory, May 1, 2017………………………………………………………..380,000 Inventory, April 30, 20

> For (A) through (E), identify the items designated by X and Y. A. Purchases – (X + Y) = Net purchases B. Net purchases + X = Cost of inventory purchased C. Inventory (beginning) + Cost of inventory purchased = X D. Inventory available for sale – X = Cost

> Financial information related to Healthy Products Company for the month ended November 30, 2018, is as follows: Net income for November…………………………………….$ 93,500 Cash dividends paid during November……………………….7,000 Retained earnings, November 1, 2018………………….

> The controller of Mercury Shoes Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: The company expects to sell about 10% of its merchandise for cash. Of sales on accou

> The following categories represent typical process manufacturing industries: ▪ Beverages ▪ Chemicals ▪ Food ▪ Forest and paper products ▪ Metals ▪ Petroleum refining ▪ Pharmaceuticals ▪ Soap and cosmetics In groups of two or three, identify one company f

> Complete the following table by indicating for A through G whether the proper answer is debit or credit: Normal Account Increase Decrease Balance Purchases debit A B Purchases Discounts credit credit Purchases Returns and Allowances D. F Freight In

> On July 31, the close of the fiscal year, the balances of the accounts appearing in the ledger of Serbian Interiors Company, a furniture wholesaler, are as follows: Prepare the July 31 closing entries for Serbian Interiors Company. $ 115,000 Accumu

> Based on the data presented in Exercise 5-24, journalize the closing entries. Data from Exercise 5-24: On March 31, 2018, the balances of the accounts appearing in the ledger of Royal Furnishings Company, a furniture wholesaler, are as follows: A. Pr

> From the following list, identify the accounts that should be closed to Income Summary at the end of the fiscal year under a perpetual inventory system: (A) Accounts Payable, (B) Advertising Expense, (C) Cost of Goods Sold, (D) Dividends, (E) Inventory,

> On the basis of the following data, (A) journalize the adjusting entries at June 30, the end of the current fiscal year, and (B) journalize the reversing entries on July 1, the first day of the following year: 1. Wages are uniformly $66,000 for a five-day

> Prepare a cost of production report for the Cutting Department of Dalton Carpet Company for January. Use the average cost method with the following data: Work in process, January 1, 3,400 units, 75% completed…………………………………$ 23,000 Materials added during

> The increases to Work in Process—Roasting Department for Highlands Coffee Company for May as well as information concerning production are as follows: Work in process, May 1, 1,150 pounds, 40% completed……..…$ 1,700 Coffee beans added during May, 10,900 p

> The following information concerns production in the Forging Department for June. The Forging Department uses the average cost method. A. Determine the cost per equivalent unit. B. Determine cost of units transferred to Finished Goods. C. Determine the

> The charges to Work in Process—Baking Department for a period as well as information concerning production are as follows. The Baking Department uses the average cost method, and all direct materials are placed in process during product

> The following information concerns production in the Finishing Department for May. The Finishing Department uses the average cost method. A. Determine the number of units in work in process inventory at the end of the month. B. Determine the number of

> During the first month of operations ended July 31, Head Gear Inc. manufactured 6,400 hats, of which 5,200 were sold. Operating data for the month are summarized as follows: During August, Head Gear Inc. manufactured 4,000 hats and sold 5,200 hats. Ope

> Based on the data presented in Exercise 17, assume that Smart Stream Inc. uses the variable cost method of applying the cost-plus approach to product pricing. A. Determine the variable costs and the variable cost amount per unit for the production and sa

> Based on the data presented in Exercise 17, assume that Smart Stream Inc. uses the total cost method of applying the cost-plus approach to product pricing. A. Determine the total costs and the total cost amount per unit for the production and sale of 10,

> The procurement process for Omni Wholesale Company includes a series of activities that transforms a materials requisition into a vendor check. The process begins with a request for materials. The requesting department prepares and sends a materials requ

> Statewide Insurance Company has a process for making payments on insurance claims as follows: An activity analysis revealed that the cost of these activities was as follows: Receiving claim……â€&brvbar

> The Brite Beverage Company bottles soft drinks into aluminum cans. The manufacturing process consists of three activities: 1. Mixing: water, sugar, and beverage concentrate are mixed. 2. Filling: mixed beverage is filled into 12-oz. cans. 3. Packaging: p

> A. Using the information in Exercise 17, identify the cost of quality classification for each activity and whether the activity is value-added or non-value-added. B. Prepare a cost of quality report. Assume that sales are $3,000,000. C. Prepare a value-a

> Three Rivers Inc. provides cable TV and Internet service to the local community. The activities and activity costs of Three Rivers are identified as follows: Activities……………………………………………………………………..Activity Cost Billing error correction…………………………………………………

> A. Using the information in Exercise 15, identify the cost of quality classification for each activity. B. Prepare of cost of quality report. Assume sales for the period were $4,000,000. C. Interpret the cost of quality report. Data from Exercise 15: M

> Vintage Audio Inc. manufactures audio speakers. Each speaker requires $48 per unit of direct materials. The speaker manufacturing assembly cell includes the following estimated costs for the period: Speaker assembly cell, estimated costs: Labor………………………

> The demand for aloe vera hand lotion, one of numerous products manufactured by Smooth Skin Care Products Inc., has dropped sharply because of recent competition from a similar product. The company’s chemists are currently completing tests of various new

> Modern Lighting Inc. manufactures lighting fixtures, using lean manufacturing methods. Style Omega has a materials cost per unit of $16. The budgeted conversion cost for the year is $308,000 for 2,200 production hours. A unit of Style Omega requires 18 m

> Westgate Inc. uses a lean manufacturing strategy to manufacture DVR (digital video recorder) players. The company manufactures DVR players through a single product cell. The budgeted conversion cost for the year is $600,000 for 2,000 production hours. Ea

> Pinnacle Technologies has recently implemented a lean manufacturing approach. A production manager has approached the controller with the following comments: I am very upset with our accounting system now that we have implemented our new lean manufacturi

> The management of Grill Rite Burger fast-food franchise wants to provide hamburgers quickly to customers. It has been using a process by which precooked hamburgers are prepared and placed under hot lamps. These hamburgers are then sold to customers. In t

> Quickie Designs Inc. uses teams in the manufacture of lightweight wheelchairs. Two features of its team approach are team hiring and peer reviews. Under team hiring, the team recruits, interviews, and hires new team members from within the organization.

> The following is an excerpt from an article discussing supplier relationships with the Big Three North American automakers. “The Big Three select suppliers on the basis of lowest price and annual price reductions,” said Neil De Koker, president of the Or

> Williams Optical Inc. is considering a new lean product cell. The present manufacturing approach produces a product in four separate steps. The production batch sizes are 45 units. The process time for each step is as follows: Process Step 1……………………………5

> Flint Fabricators Inc. machines metal parts for the automotive industry. Under the traditional manufacturing approach, the parts are machined through two processes: milling and finishing. Parts are produced in batch sizes of 30 parts. A part requires 5 m

> Hammond Inc. has analyzed the setup time on its computer-controlled lathe. The setup requires changing the type of fixture that holds a part. The average setup time has been 135 minutes, consisting of the following steps: Turn off machine and remove fix

> Palm Pals Inc. manufactures toy stuffed animals. The direct labor time required to cut, sew, and stuff a toy is 12 minutes per unit. The company makes two types of stuffed toys—a lion and a bear. The lion is assembled in lot sizes of 40 units per batch,

> During the first month of operations ended July 31, YoSan Inc. manufactured 2,400 flat panel televisions, of which 2,000 were sold. Operating data for the month are summarized as follows: Instructions: 1. Prepare an income statement based on the absorp

> Active Apparel Company manufactures various styles of men’s casual wear. Shirts are cut and assembled by a workforce that is paid by piece rate. This means that they are paid according to the amount of work completed during a period of time. To illustrat

> Sloan Corporation is considering new equipment. The equipment can be purchased from an overseas supplier for $125,500. The freight and installation costs for the equipment are $1,600. If purchased, annual repairs and maintenance are estimated to be $2,50

> The financial statements for Nike, Inc. , are presented in Appendix E at the end of the text. The following additional information is available (in thousands): Accounts receivable at May 31, 2013……………………….$ 3,117 Inventories at May 31, 2013…………………………………

> The chief executive officer (CEO) of Platnum Inc. has just returned from a management seminar describing the benefits of the lean philosophy. The CEO issued the following statement after returning from the conference: This company will become a lean manu

> The actual variable cost of goods sold for a product was $140 per unit, while the planned variable cost of goods sold was $136 per unit. The volume increased by 2,400 units to 14,000 actual total units. Determine (A) the variable cost quantity factor and

> The following information is for LaPlanche Industries Inc.: Determine the contribution margin for (A) Product YY and (B) West Region. East West Sales volume (units): Product XX 38,000 50,000 45,000 Product YY 60,000 Sales price: $660 $720 Product X

> Variable manufacturing costs are $126 per unit, and fixed manufacturing costs are $157,500. Sales are estimated to be 10,000 units. A. How much would absorption costing income from operations differ between a plan to produce 10,000 units and a plan to pr

> The beginning inventory is 52,800 units. All of the units that were manufactured during the period and 52,800 units of the beginning inventory were sold. The beginning inventory fixed manufacturing costs are $14.70 per unit, and variable manufacturing co

> Fixed manufacturing costs are $44 per unit, and variable manufacturing costs are $100 per unit. Production was 67,200 units, while sales were 50,400 units. Determine (A) whether variable costing income from operations is less than or greater than absorpt

> Marley Company has the following information for March: Sales………………………………………………………………………$912,000 Variable cost of goods sold………………………………………..474,000 Fixed manufacturing costs………………………………………….82,000 Variable selling and administrative expenses……………..238,

> Kimbrell Inc. manufactures three sizes of utility tables—small (S), medium (M), and large (L). The income statement has consistently indicated a net loss for the M size, and management is considering three proposals: (1) continue Size M

> Taft Co. reports the following data: Sales……………………………………………………..$875,000 Variable costs…………………………………………..425,000 Contribution margin……………………………….$450,000 Fixed costs……………………………………………….150,000 Income from operations…………………………$300,000 Determine Taft Co.’

> Hughes Company has fixed costs of $3,565,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company’s two products follow: The sales mix for products Model 94 and Model 81 is 25% and 75%, res

> Ramirez Company sells a product for $80 per unit. The variable cost is $60 per unit, and fixed costs are $4,850,000. Determine (A) the break-even point in sales units and (B) the sales units required for the company to achieve a target profit of $500,000

> Bigelow Inc. sells a product for $1,200 per unit. The variable cost is $816 per unit, while fixed costs are $3,120,000. Determine (A) the break-even point in sales units and (B) the break-even point if the selling price were increased to $1,232 per unit.

> Lanning Company sells 160,000 units at $45 per unit. Variable costs are $27 per unit, and fixed costs are $975,000. Determine (A) the contribution margin ratio, (B) the unit contribution margin, and (C) income from operations.

> The total factory overhead for Bardot Marine Company is budgeted for the year at $600,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboat and bass boat each require 12 direct labor hours for manufacture. Each prod

> In July, the cost of materials transferred into the Rolling Department from the Casting Department of Oak Ridge Steel Company is $432,000. The conversion cost for the period in the Rolling Department is $144,150 ($54,700 factory overhead applied and $89,

> The costs per equivalent unit of direct materials and conversion in the Rolling Department of Oak Ridge Steel Company are $180 and $62, respectively. The equivalent units to be assigned costs are as follows: The beginning work in process inventory on J

> Sterling Hotel uses activity-based costing to determine the cost of servicing customers. There are three activity pools: guest check-in, room cleaning, and meal service. The activity rates associated with each activity pool are $8 per guest check-in, $25

> Jungle Junior Company manufactures and sells outdoor play equipment. Jungle Junior uses activity-based costing to determine the cost of the sales order processing and the customer return activity. The sales order processing activity has an activity rate

> Pachec Inc. employs seven salespersons to sell and distribute its product throughout the state. Data taken from reports received from the salespersons during the year ended June 30 are as follows: Instructions: 1. Prepare a table indicating contributio

> The total factory overhead for Bardot Marine Company is budgeted for the year at $600,000, divided into four activities: fabrication, $204,000; assembly, $105,000; setup, $156,000; and inspection, $135,000. Bardot Marine manufactures two types of boats:

> The total factory overhead for Bardot Marine Company is budgeted for the year at $600,000 divided into two departments: Fabrication, $420,000, and Assembly, $180,000. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboat

> The cost of direct materials transferred into the Rolling Department of Oak Ridge Steel Company is $432,000. The conversion cost for the period in the Rolling Department is $144,150. The total equivalent units for direct materials and conversion are 2,40

> The Rolling Department of Oak Ridge Steel Company had 300 tons in beginning work in process inventory (25% complete) on July 1. During July, 2,200 tons were completed. The ending work in process inventory on July 31 was 500 tons (40% complete). What are

> The Rolling Department of Oak Ridge Steel Company had 300 tons in beginning work in process inventory (25% complete) on July 1. During July, 2,200 tons were completed. The ending work in process inventory on July 31 was 500 tons (40% complete). What are

> Oak Ridge Steel Company has two departments, Casting and Rolling. In the Rolling Department, ingots from the Casting Department are rolled into steel sheet. The Rolling Department received 2,400 tons from the Casting Department. During July, the Rolling

> Which of the following industries would typically use job order costing, and which would typically use process costing? Steel manufacturing…………………….Computer chip manufacturing Business consulting………………………………………………Candy making Web designer…………………………….Des

> A company reports the following: Sales……………………………………………………………………………………….$4,400,000 Average total assets (excluding long-term investments)………………2,000,000 Determine the asset turnover ratio. (Round percentages to one decimal place.)

> A company reports the following: Income before income tax………………………….$8,000,000 Interest expense……………………………………………..500,000 Determine the number of times interest charges are earned. (Round to one decimal place.)

> Pine Creek Company completed 200,000 units during the year at a cost of $3,000,000. The beginning finished goods inventory was 25,000 units at $310,000. Determine the cost of goods sold for 210,000 units, assuming a FIFO cost flow.

> Blue Star Airline provides passenger airline service, using small jets. The airline connects four major cities: Charlotte, Pittsburgh, Detroit, and San Francisco. The company expects to fly major cities: Charlotte, Pittsburgh, Detroit, and San Francisco.

> A company reports the following: Cost of goods sold…………………………………$435,000 Average inventory……………………………………..72,500 Determine (A) the inventory turnover and (B) the number of days’ sales in inventory. (Round to one decimal place.)

> A company reports the following: Sales………………………………………………………..$3,150,000 Average accounts receivable (net)…………………..210,000 Determine (A) the accounts receivable turnover and (B) the number of days’ sales in receivables. (Round to one decimal place.)

> Identify the following costs as a prime cost (P), conversion cost (C), or both (B) for a magazine publisher: A. Paper used for the magazine B. Wages of printing machine employees C. Glue used to bind magazine D. Maintenance on printing machines

> During May, Bergan Company accumulated 2,500 hours of direct labor costs on Job 200 and 3,000 hours on Job 305. The total direct labor was incurred at a rate of $28 per direct labor hour for Job 200 and $24 per direct labor hour for Job 305. Journalize t

> Identify whether each of the following would be reported as an operating, investing, or financing activity on the statement of cash flows: A. Purchase of investments B. Disposal of equipment C. Payment for selling expenses D. Collection of accounts recei