Ask Question, Ask an Expert


Ask Accounting Basics Expert

problem 1: ABC Company produces two products (product X and product Y) from a joint process. Product X has been allocated $30,000 of the total joint cost of $50,000. A total of 3,000 units of product X are produced from the joint process. Product X can be sold at the split-off point for $8 per unit or can be further processed for an additional cost of $12,000 and then sold for $15 per unit. If product X is processed further what would be the impact on the overall profit of the company compared to sales in its form directly after the split-off point?:

a) $21,000 incremental loss.
b) No incremental profit.
c) $9,000 incremental profit.
d) $33,000 incremental profit.

problem 2: In year 1 of a company the revenues were $50,000, expenditures were $30,000 and the shareholder's dividends were $10,000. What is the total income recognized?:

a) $50,000 net loss.
b) $30,000 net loss.
c) $10,000 net income.
d) $20,000 net income.

problem 3: Acme Corporation is planning to sell 60,000 units of its product in March. The company started March with 8,000 completed units in finished goods inventory and plans to end March with 2,000 units in finished goods inventory. How much finished units does Acme plan to produce in March?:

a) 52,000
b) 54,000
c) 58,000
d) 66,000

problem 4: A manufacturing company’s flexible budget exhibits a selling price of $250 per unit, variable cost of $175 per unit and fixed costs of $200,000. The company expects to sell 6,000 units. What would its flexible budget show as total income:

a) $250,000 loss
b) $200,000 gain
c) $250,000 gain
d) $450,000 gain

problem 5: For company X the total profit margin = 5%, return on assets = 10% and assets = $250,000. Compute the sales for company X.:

a) $12,500
b) $25,000
c) $200,000
d) $500,000

problem 6: Acme Corporation sells one of their products for $50.00 per unit with a variable cost per unit of $30.00. Determine the break-even point in units if its fixed costs are $2,000,000?:

a) 40,000
b) 50,000
c) 66,667
d) 100,000

problem 7: Compute return on invested capital. Suppose that net income is $100,000, interest expense is $20,000, average value of assets is $1,000,000, average total equity is $550,000 and average invested capital is $600,000:

a) 10%
b) 16.6%
c) 20%
d) 21.82%

problem 8: Compute the payback period based on the information provided. Net investment is $500,000. Cash flows are $150,000 for Year 1; $150,000 for Year 2; $100,000 for Year 3; $200,000 for Year 4; $100,000 for Year 5:

a) 4 years
b) 3 years
c) 3.5 years
d) 4.5 years

problem 9: Company XYZ started the year with $1,000,000 in assets and ended the year with $1,200,000 in assets. During the year the company has sales of $1,500,000. Find out the company's asset turnover ratio:

a) 1.20
b) 1.25
c) 1.36
d) 1.50

problem 10: ABC Company’s beginning inventory and ending inventory for the year are $500,000 and $400,000 respectively. Its cost of goods sold during the year is $1,800,000. On average how many days in inventory does ABC Company have? Suppose 365 days in a year:

a) 81
b) 87
c) 91
d) 101

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M92831

Have any Question? 

Related Questions in Accounting Basics

Discussion 1 and 2discussion 1select one of the following

Discussion 1 and 2 Discussion 1 Select one of the following tools: the nine steps in Ackerman and Anderson's roadmap for change, Cummings and Worley's five dimensions of leading and managing change, or the three componen ...

Assignment expected value and consumer choicesconsumers

Assignment: Expected Value and Consumer Choices Consumers' choices are prey to subtle discrepancies that arise in cognitive accounting. Learning how and when you are prey to these discrepancies is an important step in im ...

Study guide1 what is the beta of a firm whose equity has an

STUDY GUIDE 1. What is the beta of a firm whose equity has an expected return of 21.30%, the risk-free rate is 7%, and the expected return on the stock market is 18%? 2. Two reasons for the agency problem in modern corpo ...

Accounting for gov amp not for profit1 explain in 2-4

ACCOUNTING FOR GOV & NOT FOR PROFIT 1. Explain in 2-4 sentences the difference between government Agency funds and Fiduciary funds. 2. What information is or is not required to be reported in the RSI for pension plans un ...

Preston auto paint company had the temporary free use of an

Preston Auto Paint Company had the temporary free use of an old building and completed the following transactions in September 2010: Sept. 1 The company was organized and received USD 100,000 cash from the issuance of ca ...

On december 31 2017 buffalo company signed a 1137500 note

On December 31, 2017, Buffalo Company signed a $1,137,500 note to Carla Bank. The market interest rate at that time was 12%. The stated interest rate on the note was 10%, payable annually. The note matures in 5 years. Un ...

Assignment identification of fiduciary fundsfollowing is a

Assignment: Identification of Fiduciary Funds Following is a list of fund names and descriptions from the comprehensive annual financial reports (CAFRs). Required: Indicate which of the following are fiduciary funds. If ...

Assignmentcarol is a single mother who owns a wholesale

Assignment Carol is a single mother who owns a wholesale auto parts distributorship. The business is organized as a sole proprietorship. Her business has advanced, and she can no longer devote the time necessary to do he ...

Question 1the company you work for has a large amount of

Question 1 The company you work for has a large amount of disposable cash and very little debt on its books. The board of directors has expressed an interest in taking this money and investing in equity and debt securiti ...

The following data relate to the operations of shilow

The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31:        Cash $8,000        Accounts receivable $20,000        Inventory $36,000      ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro