MANAGEMENT ACCOUNTING MULTIPLE CHOICE PRACTICE QUESTIONS FOR TOPIC 1 72. Both direct materials and indirect materials are a. period costs. b. merchandise inventory. c. raw materials. d. manufacturing overhead. 73. Into which one of the following accounts would the work of factory employees that can be physically and directly associated with converting raw materials into finished goods be categorized? a. Direct labor b. Indirect labor c. Manufacturing overhead
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consequences while the statement of cash flows reports the cash-basis consequences of the operating activities Exercise 13-19 a. Total units sold = 70 + 60 + 60 = 190 Total units in ending inventory = 60 FIFO ending inventory = (60 × 15) = $900 FIFO cost of goods sold = $2,500 b. LIFO ending inventory = 60 × 12 = $720 LIFO cost of goods sold = $2,680 c. Total cost of goods available for sale = 1,200 + 700 + 1,500 =
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people, and gives it the opportunity to take advantage of market conditions. The two other measurements of liquidity are very important to a business manager and/or owner. And one relates to the accounts receivable and the other relates to the inventory. And there
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Jamona Corporation Scenario Amy McIntosh ACC545 May 7, 2012 Hung Tran Jamona Corporation Scenario The following paper details the journal entries relating to the investments, inventory, fixed assets, and capital leases noted within the Jamona Corporation document. The attached excel document shows applicable schedules, financial statement handling, and any necessary note disclosures. Investments Purchase 1/1/06 Available-for-sale Securities $322,744.44 Cash $322,744.44
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Lawrence Sports Simulation FIN/571 Corporate Finance Prof. Ricardo Rivera Matos May 29, 2012 University of Phoenix * Lawrence Sports Simulation * The process of taking risks will define if a company will emerge from a financial situation. The business relationships will suffer, but if the high risk is in a short term basis, probably this will help both parts to comprehend why is important to keep good finance health when an emergency situation occurs. * Lawrence Sports is a 20
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AFN=($1000/$2000)$500-($100/$2000)$500-0.0252($2500)(($50.4-$15.12)/$50.04) AFN=0.5*$500-0.05*$500-0.0252($2500)(0.7) AFN=$250-$25-$44.1=$180.9 Answer: NWC will need $180.9 million. Section B Consultations with several key managers within NWC, including production, inventory, and receivable managers, have yielded some very useful information. (1) NWC’s high DSO is largely due to one significant customer who battled through some hardships the past 2 years but who appears to be financially healthy again and is generating
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Running Head: Process Design for Riordan Manufacturing Process Design for Riordan Manufacturing: Inception to Production Planning Writer’s Name Course Name, Semester No, Class Level Supervisor Name September 23, 2009 Introduction The present paper discusses the proposal package for Riordan which handles each step of electric fans from inception to production. It includes the material requirement planning phase of fans being manufactured at the China Plant. There
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recognized as accrued liabilities. Furthermore, BWC’s method for inventory will change under IFRS. Though GAAP offers more rules to account for inventories, IFRS’ identification of items sold and unsold is a huge contrast from BWC’s current practice. BWC uses the Last-in, First out (LIFO) method to match the cost of goods sold; IFRS doesn’t permit LIFO so BWC must implement the First in-First (FIFO) to match costs of its inventory. This means that BWC will have to pull the LIFO reserve back into
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Closing stock valuation is done upon the most recent prices paid for stock which takes into account the rate of inflation. * The method is more realistic as the inventory is issued in the order in which they have been received. * FIFO is acceptable method of inventory valuation as per Accounting concepts and conventions. * Inventory is issued to production at the price actually paid purchase them. | * At times of high rate of inflation FIFO values closing stock at the latest price which
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total revenues. b. cost of goods sold from net sales. X c. cost of goods sold from total revenues. d. operating expenses from net sales. 2. Abaco Enterprises had beginning inventory of $30,000 at March 1, 2011. During the month, the company made purchases of $240,000. The inventory at the end of the month is $34,000. What is cost of goods available for sale for the month of March?
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