Johanson Corporation uses a standard cost system in which inventories are recorded at their standard costs and any variances are closed directly to Cost of Goods Sold. The standard cost card for the company's only product is as follows:InputsStandard Quantityor HoursStandard Price or RateStandard CostDirect materials3.4pounds$8.00per pound$27.20Direct labor0.70hours$21.00per hour 14.70Fixed manufacturing overhead0.70hours$13.50per hour 9.45Total standard cost per unit $ 51.35During the year, the company purchased 89,600 pounds of raw material at a price of $7.80 per pound and used 79,120 pounds of the raw material to produce 23,300 units of work in process.Assume that all transactions are recorded on a worksheet as shown in the text. On the left-hand side of the equals sign in
the worksheet are columns for Cash, Raw Materials, Work in Process, Finished Goods, and PP&E (net). All of the variance columns are on the right-hand-side of the equals sign along with the column for Retained Earnings.When recording the raw materials purchases, the Raw Materials inventory account will increase (decrease) by:
A. ($716,800)
B. $716,800
C. ($698,880)
D. $698,880
Answer: B
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Minar Inc. reported the following results from last year's operations: Sales$5,700,000Variable expenses 3,510,000Contribution margin 2,190,000Fixed expenses 1,734,000Net operating income$456,000Average operating assets$3,000,000?At the beginning of this year, the company has a $900,000 investment opportunity with the following characteristics: Sales$1,530,000 Contribution margin ratio 60% of salesFixed expenses$810,900 ?If the company pursues the investment opportunity and otherwise performs the same as last year, the combined ROI for the entire company will be closest to:
A. 18.8% B. 14.4% C. 2.7% D. 11.7%
The owner of property valued at $150,00 . insured the property for $75,00 . for one year at a premium rate of $4.90 per thousand. The policy carried a 75% coinsurance clause. A fire caused $56,250 in damages. Compute the amount the property insurance and repairs for fire damage cost the insured that year
______________________________ systems facilitate the integration of all aspects of product design, manufacturing, and marketing.
Fill in the blank(s) with the appropriate word(s).
The Superior Company acquired a building for $500,000. The building was appraised at a value of $575,000. The seller had paid $300,000 for the building 6 years ago. Which accounting principle would require Superior to record the building on its records at $500,000?
A) Monetary unit assumption. B) Going-concern assumption. C) Measurement (Cost) principle. D) Business entity assumption. E) Revenue recognition principle.