Ask Accounting Basics Expert

problem 1: A company projects production of 10,000 units which will need 3 hours of direct labor to produce each item. Direct labor costs are $15 per hour (standard rate). The actual job needs 32,000 hours to produce 9,500 units at a labor cost of $528,000. Determine the labor efficiency variance?:

a. $42,750 unfavorable
b. $48,000 unfavorable
c. $52,500 unfavorable
d. $57,750 unfavorable

problem 2: Which of the given would raise the cash flows from operating activities (all other things equal):

a. A decrease in long-term debt
b. An increase in long-term debt
c. An increase in accounts receivables
d. An increase in accounts payables

problem 3: A company takes 25 days to sell the average piece of inventory. It takes another 18 days to collect a receivable. It takes 20 days to pay accounts payable. Find out the cash conversion cycle for this company:

a. 23 days
b. 43 days
c. 45 days
d. 63 days

problem 4: A company started the year with $55,000 in inventory. Throughout the year, the company bought other $400,000 in inventory. The company ends the year with $65,000 in inventory. Sales for the period were $575,000. On average, how long does it take for the company to sell an item of inventory? Suppose 365 days in a year:

a. 54.8 days
b. 56.2 days
c. 59.3 days
d. 61.8 days

problem 5: A company started the year with $525,000 in accounts receivable and ended the year with $400,000 in accounts receivable. Throughout the year, the company made credit sales of $8,500,000. How long on average did the company take to collect its accounts receivable throughout this period? Suppose 365 days in a year:

a. 17.2 days
b. 19.9 days
c. 22.5 days
d. 29.8 days

problem 6: If the merchandise inventory at the end of the year is overstated by $10,000, the error will cause an:

a. Overstatement of cost of merchandise sold for the year by $10,000
b. Understatement of gross profit for the year by $10,000
c. Overstatement of net income for the year by $10,000
d. No impact on income statement

problem 7: The given units of a particular item were purchased and sold throughout the period:

118_Costing method.jpg

What are the unit cost(s) of the remaining units on hand at the end of the period as determined by the LIFO costing method:

a. $25
b. $28
c. $25 and $26
d. $25 and $28

problem 8: If merchandise inventory is being valued at cost and the price level is steadily increasing, the method of costing which will produce the lowest net income is:

a. Average
b. FIFO
c. LIFO
d. Periodic

problem 9: Which of the given assets doesn't get depreciated:

a. Buildings
b. Equipment
c. Land
d. All of the above get depreciated

problem 10: Find out the amount of depreciation, by using the sum-of-the-years-digits method, for the first year of use for equipment costing $17,500, with an estimated residual value of $1,000 and an estimated life of 4 years:

a. $4,125
b. $4,375
c. $6,600
d. $7,000

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M92834

Have any Question?


Related Questions in Accounting Basics

Question what discoveries have you made in your research

Question: What discoveries have you made in your research and how does this information inform your ability to evaluate effective coaching and its impact on organizations? Consider these guiding questions: 1. What core c ...

Question requirement 1 read the article in below attachment

Question: Requirement: 1. Read the article in below attachment, and answer the questions in a paper format. Read below requirements before your writing! 2. Not to list the answers, and you should write as a paper format. ...

Question as a financial consultant you have contracted with

Question: As a financial consultant, you have contracted with Wheel Industries to evaluate their procedures involving the evaluation of long term investment opportunities. You have agreed to provide a detailed report ill ...

Question the following information is taken from the

Question: The following information is taken from the accrual accounting records of Kroger Sales Company: 1. During January, Kroger paid $9,150 for supplies to be used in sales to customers during the next 2 months (Febr ...

Assignment 1 lasa 2-capital budgeting techniquesas a

Assignment 1: LASA # 2-Capital Budgeting Techniques As a financial consultant, you have contracted with Wheel Industries to evaluate their procedures involving the evaluation of long term investment opportunities. You ha ...

Assignment 2 discussion questionthe finance department of a

Assignment 2: Discussion Question The finance department of a large corporation has evaluated a possible capital project using the NPV method, the Payback Method, and the IRR method. The analysts are puzzled, since the N ...

Question in this case you have been provided financial

Question: In this case, you have been provided financial information about the company in order to create a cash budget. Management is seeking advice or clarification on three main assumptions the company has been operat ...

Question 1what step in the accounting cycle do adjusting

Question: 1. What step in the accounting cycle do Adjusting Entries show up 2. How do these relate to the Accounting Worksheet? 3. Why are they completed at the end of each accounting period? The response must be typed, ...

Question is it important for non-accountants to understand

Question: Is it important for non-accountants to understand how to read financial statements? If you are not part of the accounting/finance function in a business what difference would it make? The response must be typed ...

Question refer to the hat rack cash flow statement 2002 in

Question: Refer to the Hat Rack Cash Flow Statement, 2002 in the text on page 17. Answer the following questions and submit to me via Canvas by the due date. 1. Cash flow from operations? 2. Cash flow from investing? 3. ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As