Riverton Corp., which began business at the start of the current year, had the following data:Planned and actual production: 40,000 unitsSales: 37,000 units at $15 per unitProduction costs:Variable: $4 per unitFixed: $260,000Selling and administrative costs:Variable: $1 per unitFixed: $32,000The gross margin that the company would disclose on an absorption-costing income statement is:
A. $370,000.
B. $147,000.
C. $166,500.
D. $97,500.
E. None of the answers is correct.
Answer: C
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When an acceptable purchasing alternative has been identified and it is taken, the process is called:
A) decision maximization B) satisficing C) utilization D) standardization
In job-order costing, the journal entry for a completed job costing $7,000 but not sold is: Finished Goods ...................... 7,000 Work in Process ...... 7,000
Indicate whether the statement is true or false
Fetzer Company declared a $0.55 per share cash dividend. The company has 200,000 shares authorized, 190,000 shares issued, and 8,000 shares in treasury stock. The journal entry to record the payment of the dividend is:
A. Debit Retained Earnings $104,500; credit Common Dividends Payable $104,500. B. Debit Common Dividends Payable $100,100; credit Cash $100,100. C. Debit Retained Earnings $110,000; credit Common Dividends Payable $110,000. D. Debit Common Dividends Payable $104,500; credit Cash $104,500. E. Debit Retained Earnings $100,100; credit Common Dividends Payable $100,100.
In order to determine the average weight of carry-on luggage by passengers in airplanes, a sample of 25 pieces of carry-on luggage was collected and weighed. The average weight was 18 pounds. Assume that we know the standard deviation of the population to be 7.5 pounds
a. Determine a 97% confidence interval estimate for the mean weight of the carry-on luggage. b. Determine a 95% confidence interval estimate for the mean weight of the carry-on luggage.