116) Which item would appear last on a production cost report? A) Cost of goods finished for the month B) Total costs accounted for C) Beginning WIP Inventory, if any D) Ending WIP Inventory, if any 117) On a production cost report, the following cost(s) would appear A) beginning work in process. B) costs added during the period. C) total operating costs during the period. D) Both A and B are included on a production cost report. 118) On a production cost report, where would current costs added during the period appear? A) After any beginning WIP Inventory cost B) […]

  1) Total fixed costs do not change in response to changes in the volume of production. 2) In a manufacturing company, fixed costs remain the same at many different production levels within the relevant range. 3) Unit variable costs do not change as total production increases. 4) Mixed costs are purely fixed. 5) Fixed costs per unit decrease as production levels increase. 6) An expense such as advertising could be considered a discretionary fixed cost. 7) The fixed cost per unit does not always remain the same. 8) The line on a graph representing total fixed costs will be […]

81.The shareholders' equity section of Zagreb Corp. at December 31, 2016 was: Common shares, no par value; authorized 20,000 shares; issued and outstanding 10,000 shares………………$50,000 Retained earnings………………………………..200,000 $250,000 On February 28, 2017, when the market value of Zagreb’s shares was $12 per share, the board of directors declared a 15% stock dividend, and accordingly 1,500 additional shares were issued. For the two months ended February 28, 2017, Zagreb reported a net loss of $20,000. What amount should Zagreb report as retained earnings atFebruary 28, 2017? a) $162,000 b) $180,000 c) $182,000 d) $198,000 82.Cash dividends declared on the no par […]

66.On May 1, 2017, Durban should credit Contributed Surplus—Stock Warrants for a) $35,000. b) $20,000. c) $15,000. d) $ 0. 67.Lagos Inc. issued bonds with detachable warrants for $5,000,000 (par value). The bonds have a present value of $4,934,400. The fair value of the warrants is determined to be $220,000. Using the relative fair value method, how much of the issue price should be allocated to the warrants? a) $ 65,600 b) $211,200 c) $213,500 d) $220,000 68.On July 1, 2017, Juba Inc. issued 10,000, $7 non-cumulative, no par value preferred shares for $1,050,000. Attached to each share was one […]

61.Gupta Corp. purchased its own shares on January 1, 2017 for $20,000 and debited Treasury Sharesfor the purchase price. The shares were subsequently sold for $12,000. The $8,000 difference between the cost and sales price should be recorded as a debit to a) Contributed Surplus to the extent that previous net “gains” from sales or retirements of the same class of shares are included therein; otherwise, to retained earnings. b) Contributed Surplus regardless of whether there have been previous net “gains” from sales or retirements of the same class of shares included therein. c) Retained Earnings. d) Loss from Sale […]