ACC 422 Final Exam Wileyplus
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Question 1
Kraft Enterprises owns the following assets at December 31, 2012.
Cash in bank–savings account 67, 516 Checking account balance 26,445
Cash on Hand 9,478 Postdated checks 753
Cash refund due from IRS 40,324 Certificates of deposit(180 day) 94,754
What amount should be reported as cash?
Question 2
Presented below is information related to Rembrandt Inc. 's inventory.
Per Units Skis Boots Parkas
Historical Cost $254.22 $141.83 $70.91
Selling Price 290.35 194.01 98.68
Cost to distribute 25.42 10.70 3.35
Current replacement cost 271.61
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(Round computation for cost-to-retail ratio percentage and answer to 0 decimal places, e.g. 25,250.)
Question 10
Astaire Company uses the gross profit method to estimate inventory for monthly reporting purposes. Presented below is information for the month of May.
Inventory May 1 $184,000
Purchases (gross) 736, 000
Freight-in 34, 500
Sales 1,150,000
Sales returns 80,500
Purchase discounts 13,800
Compute the estimated inventory at May 31, assuming that the gross profit is 25% of sales
Compute the estimated inventory at May 31, assuming that the gross profit is 25% of cost
Question 11
Previn Brothers Inc. purchased land at a price of $27,400. Closing costs were $2,550. An old building was removed at a cost of $10,530. What amount should be recorded as the cost of the land?
Question 12
Garcia Corporation purchased a truck by issuing an $90,400, 4-year, zero-interest-bearing note to Equinox Inc. The market rate of interest for obligations of this nature is 10%. Prepare the journal entry to record the purchase of this truck. (Round answers to 0 decimal places, e.g. 15,510. List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2. Hint: Use tables in text.)
Question 13
Mohave Inc. purchased land, building, and equipment from Laguna Corporation for a cash payment of $431,550. The estimated fair values of the assets are land $82,200, building $301,400, and
1. a. The simulation indicates that 584 is the optimum stocking quantity. Daily profit at this stocking quantity is $331.4346.
One of specialty’s managers felt that the profit potential was so great that the order quantity should have a 70% chance of meeting demand and only a 30% chance of any stock-outs. What quantity would be ordered under this policy, and what is the projected profit under the three sales scenarios?
c. How could the transaction be structured a different way to get a better result for
On December 31, MD purchased lumber costing $4,410 which was received that day; however, it was not included in the inventory count or in accounts payable. The issue is whether the inventory should be included in the December 31, 2014 year end or not until the lumber was put into production in January.
Second, the manufacturing order costs for non-stocked items was calculated by dividing total manufacturing order costs for non-stocked items by the number of orders for non-stocked products. Non-stocked products have additional costs associated with processing orders that went above and beyond the costs associated with a stocked product. The third step involved determining what the S"A allocation factor would be for calculating the S"A volume related costs. This allocation factor would then be applied to manufacturing COGS. The fourth and final step involved the calculation of the operating profit based on backing out volume related costs from sales revenues followed by deducting S"A and manufacturing order costs from the resulting gross margin to arrive at a operating profit.
As part of the expansion plan, Wie will acquire some used equipment by signing a zero-interest-bearing note. The note has a maturity value of $50,000 and matures in 5 years. A reliable fair value measure for the equipment is not available, given the age and specialty nature of the equipment. As a result, Wie 's accounting staff is unable to determine an established exchange price for recording the equipment (nor the interest rate to be used to record interest expense on the long-term
income is $26.03 for year 1. Similarly, the present value of the firm at time 1 is
Complete an income statement, balance sheet and statement of cash flows for 2011 assuming that sales projects were 20% lower
b. The inventory write down recorded, as an expense by the company is $4.4 million. It is measured at lower of cost and net realizable value. Cost is measured by weighted average using standard cost method or
Compute the amount of gross profit to be recognized from the installment sale in 2006, 2007, 2008, 2009, and 2010 using point of delivery revenue recognition. Ignore interest charges.
b) What is the firm’s forecasted average daily sales for the first three months of operations? For the entire half-year?
Days’ Sales in Inventory Dabble, Inc., has sales of $980,000 and cost of goods sold of $640,000. The firm had a beginning inventory of $36,000 and an ending inventory of $46,000. What is the length of the days’ sales in inventory? (LG3)
1. Sales forecast – (at $ 30 retail price with the assumption of $15 whole sale price)