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

Questionin order to complete this project it will be

Question In order to complete this project, it will be necessary for you to access the FASB Codification website through the American Accounting Association. You may login at using the follo ...

Milestone three guidelinesoverview the final project for

Milestone Three Guidelines Overview: The final project for this course is the creation of a portfolio consisting of a report and spreadsheets. You will be placed in a real-world scenario in which you will take the role o ...

A tomato farmer with a very large farm of approximately

A tomato farmer with a very large farm of approximately 2200 acres had heard about a new type of rather expensive fertilizer which would supposedly significantly increase his production. The frugal farmer wanted to test ...

Examine the following book-value balance sheet for

Examine the following book-value balance sheet for University Products, Inc. What is the capital structure of the firm on the basis of market values? The preferred stock currently sells for $15 per share and the common s ...

Assume that you recently graduated and have just reported

Assume that you recently graduated and have just reported to work as an investment advisor at the onof the firms on Wall Street. You have been presented and asked to review the following Income Statement and Balance Shee ...

Course project a financial statement analysisa comparative

Course Project: A Financial Statement Analysis A Comparative Analysis of Nike, Inc. and Under Armour, Inc. Below is the link for the financial statements for Nike, Inc. for the fiscal year ending 2014. First, select 2014 ...

Effect of financing on earnings per sharethree different

Effect of Financing on Earnings Per Share Three different plans for financing a $4,400,000 corporation are under consideration by its organizers. Under each of the following plans, the securities will be issued at their ...

Additional information1 the company during the year paid

Additional Information 1. The Company during the year paid AED 200,000 for security deposit and bank charges of AED 40. 2. The Warehouse reported inventory stock count of AED 286,500. 3. XYZ Company's confirmation ,( Cus ...

Exercise recording receivables and identifying their effect

Exercise: Recording receivables and identifying their effect on financial statements Davos Company performed services on account for $160,000 in 2016. Davos collected $120,000 cash from accounts receivable during 2016, a ...

Assignmentfactsthe w company civil engineers consists of

ASSIGNMENT Facts: The W Company Civil Engineers consists of two divisions. The divisions are Water and Waste Water. The company sells engineering services to various customers. The following are the bill rates for the va ...

  • 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

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

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen