51) If Capital has been credited, it is likely that: A) services were provided to a cash customer. B) services were provided to a charge customer. C) the owner made an investment. D) All of these are possible 52) If Fees Earned has been credited, it is most likely that: A) services were provided. B) the owner made an investment. C) a correcting entry for the overstatement of revenue was recorded. D) All of these are possible.   53) If Accounts Payable has been debited, it is most likely that: A) a payment was made on account. B) a […]

  41) Bailey's received its electric bill for December on December 31 but did not pay nor record it in the general journal. This resulted in: A) understated assets. B) overstated net income. C) overstated liabilities. D) understated capital.   42) Online Service received its telephone bill for January, but is not going to pay the bill until February. What adjustment is needed to record the transaction? A) Debit Telephone Expense; credit Cash B) Debit Accounts Payable; credit Telephone Expense C) Debit Telephone Expense; credit Accounts Payable D) Debit Accounts Payable; credit Cash   43) Which of the following is […]

99) Drost, Inc. has budgeted sales of $150,000 with the following budgeted costs: Direct materials$31,500 Direct labour20,500 Factory overhead: Variable18,500 Fixed28,000 Selling and administrative expenses: Variable12,000 Fixed16,000 Compute the average target profit percentage for setting prices as a percentage of: a.Prime costs. b.Total costs. c.Total variable costs. d.Variable manufacturing costs. e.Total manufacturing costs. 100) Ellson Corp. has budgeted sales of $487,500 with the following budgeted costs: Direct materials$105,000 Direct labour82,500 Factory overhead: Variable$  60,000 Fixed67,500 Selling and administrative expenses: Variable$  45,000 Fixed62,500 Compute the average target profit percentage for setting prices as a percentage of: a.Total manufacturing costs. b.Total variable […]

99) Drost, Inc. has budgeted sales of $150,000 with the following budgeted costs: Direct materials$31,500 Direct labour20,500 Factory overhead: Variable18,500 Fixed28,000 Selling and administrative expenses: Variable12,000 Fixed16,000 Compute the average target profit percentage for setting prices as a percentage of: a.Prime costs. b.Total costs. c.Total variable costs. d.Variable manufacturing costs. e.Total manufacturing costs. 100) Ellson Corp. has budgeted sales of $487,500 with the following budgeted costs: Direct materials$105,000 Direct labour82,500 Factory overhead: Variable$  60,000 Fixed67,500 Selling and administrative expenses: Variable$  45,000 Fixed62,500 Compute the average target profit percentage for setting prices as a percentage of: a.Total manufacturing costs. b.Total variable […]

26) Cost of ending work-in-process is A) $77,640. B) $82,632. C) $85,128. D) $90,120. Edwards Company produces calendars in a one-department process.  The following information is available: Direct materials added $120,000 Direct labour $  82,800 Factory overhead $  41,400 Work-in-process, beginning inventory -0- Units started 30,000 Units completed and transferred out 24,000 Work-in-process, ending inventory 6,000 27) The total of costs to account for is A) $244,200. B) $120,000. C) $ 82,800. D) $ 41,400. 28) The equivalent units for materials are A) 24,000. B) 30,000. C) 27,600. D) 6,000. 29) The equivalent units for conversion costs are A) 6,000. […]