1. On January 1, 20X6, Brogden Corporation issued at 97 plus accrued interest, two hundred of its ten-year, 8%, $1,000 bonds. The bonds are dated October 1, 20X5. Interest is payable semi-annually on April 1 and October 1. Accrued interest for the period October 1, 20X5 to January 1, 20X6 amounted to $4,000. What amount should Brogden record for bonds payable (net of related discount) on January 1, 20X6?
2. Garnet Corporation was organized by issuing 100,000 shares of $1 par value common stock at a price of $50 cash per share. During the first year, Garnet had net income of $250,000 and paid $50,000 dividends. What is the balance sheet amount for common stock at year-end?
3. During all of 20X6, Swanson, Inc. had outstanding 100,000 shares of common stock and 5,000 shares of noncumulative, $100 par value, 7% preferred stock. For 20X6, Swanson had $230,000 income from operations and $575,000 extraordinary losses; dividends were paid only to preferred shareholders. How much should Swanson report for 20X6 basic earnings (loss) per share for income (loss) before extraordinary items?
4. The following financial information is available for Masters Corporation for 20X5: Current Assets (end of year / beginning of year) $96,000 / $60,000
Current Liabilities (end of year / beginning of year) $76,000 / $42,000 Inventory (average / end of year) $26,000 / $30,000
Accounts Receivable (average / end of year) $45,000 / $40,000
Sales ($10,000 cash sales included) $400,000
Cost of Goods Sold $260,000
Cash (end of year) $26,000
What is the quick ratio?
5. Total manufacturing costs are $520,000 and the cost of goods manufactured is $475,000. If ending Work-in-Process Inventory is $60,000, what was the beginning Work-in-Process Inventory?
6. Southwest Air Conditioning & Heating Company performs air conditioner repair service. During July, its busiest month, Southwest had repair labor hours of 60,000 and total costs of $840,000. During November, its slowest month, Southwest had labor hours of 20,000 and total costs or $480,000. How much is Southwest's variable repair cost per labor hour?
7. A company has three employees (A, B, and C). Employee A worked 8 hours, divided equally between two jobs (#1 and #2). Employee B worked 6 hours, divided equally between three jobs (#2, #3, and #4). Employee c worked 8 hours, divided equally between two jobs (#3 and #4). Employee A is paid $10 per hours, Employee B is paid $12 per hour, and Employee C is paid $15 per hour. How much direct labor cost is assigned to Job #2?
8. Basham Company uses a process cost system during 20X6, Basham had no beginning work in process inventory. During 20X6, Basham started and finished 500 units. Also, Basham had 200 units in process at the end of 20X6. These units were 50% complete with respect to materials. What are the equivalent units for direct materials?
9. Assume that March's budgeted sales are 10,000 units. Beginning finished goods inventory contained 1,000 units, and 1,500 units are desired to be on hand at month end, conversely, beginning direct materials inventory consisted of 1,500 units, but only 1,000 units are desired to be on hand at month end. Each finished unit requires 2 units of raw materials and 1 hour of direct labor. Raw materials cost $6 per unit, and the direct labor costs $9 per hour, factory overhead is applied at $7 per hour, and the company has no work in process. How much will the cost of goods manufactured amount to for March?
10. Kolton uses single raw materials in its production process. The material has a standard price of $10 per pound. During November the company purchased and used 15,000 pounds of materials. The actual price paid for these materials was $9.90 per pound. The standard quantity required per finished product is 8 pounds. Kolton produced 1,900 finished units of the final product in November. How much was the material price variance for November?
11. Vaswani Company provides the following information for their first year of operations:
Sales, 5,000 units @ $10 each; total production, 7,500 units
Selling and administrative costs:
Fixed, $1,000; Variable, $1 per unit
Production costs per unit:
Direct materials, $2; Direct labor, $2; Variable overhead, $1
Fixed manufacturing overhead, $7,500
If Vaswani uses direct costing, how much is the contribution margin?