80.2K

Verified Solution

Link Copied!

Doff Manufacturing Company sold equipment that cost $16,500 and accumulated depreciation of $14,050 for $5,700 cash. How is the Cash Flows from Operating Activities affected?

Multiple Choice

• The gain of $3,250 is deducted from Net Income

• The $5,700 cash received from the sale is added to Net Income

• The gain of $3,250 is added to Net Income

• The book value of $2,450 is added to Net Income

In its first year of operations, a company has sales of $162,000, ending finished goods inventory of $9,000, variable manufacturing costs of $55,000, and fixed manufacturing costs of $32,000 for the year. The company pays 12% commission to its sales force and has fixed selling and administrative expenses of $25,000 annually. The company has no other variable expenses. Assuming the company uses direct costing, the marginal income on sales is

Multiple Choice

• $96,560.

• $87,560.

• $71,560.

• $107,000.

_____________ are the two principal cost accounting systems for capturing and reporting manufacturing costs.

Multiple Choice

• job order cost and process cost

• standard cost and indirect cost

• just-in-time and perpetual inventory

• work in process and manufacturing overhead

Costmore Manufacturing has provided the following operating results for its first year operations:

Beginning inventory of finished goods	0
Units produced (no work in process)	22,000
Units sold	18,000
Units in ending inventory of finished goods	4,000
Sales price	$ 55	per unit
Variable manufacturing costs	$ 25	per unit manufactured
Variable selling and administrative expenses	$ 7	per unit sold
Fixed manufacturing costs for the year	$ 110,000
Fixed selling and administrative expenses for the year	$ 124,000

Using direct costing, the manufacturing margin is:

Multiple Choice

• $550,000

• $540,000

• $480,000

• $450,000

Answer & Explanation Solved by verified expert

See Answer