P13-7A Prepare a statement of cash flows – indirect method, and compute free cash flow. NOSKER COMPANY Comparative Balance Sheet December 31 2017 Assets Cash $38,000 Accounts Receivable 30,000 Inventory 27,000 Equipment 60,000 Accumulated depreciation–equipment (29,000) Total $126,000 Liabilities and Stockholders’ Equity Accounts payable $24,000 Income taxes payable 7,000 Bonds payable 27,000 Common…
Read MoreDue Week 8 and worth 250 points Accounting is the language of business, and it is not a dead language! The FASB is responsible for ensuring that all relevant and material financial information is properly codified in Generally Accepted Accounting Principles (GAAP). The use of off balance sheet leases to distort the real liabilities of…
Read MoreBarker Production Company has developed the following standards for one of its products. STANDARD VARIABLE COST CARD One Unit of Product Materials: 30 square feet ´ $5 per square foot $150.00 Direct labor: 16 hours ´ $7 per hour 112.00 Variable manufacturing overhead: 16 hours ´ $5 per hour 80.00 Total…
Read MoreThe following standard costs were developed for one of the products of Larry Corporation: STANDARD COST CARD PER UNIT Materials: 4 feet ´ $14 per foot $ 56.00 Direct labor: 8 hours ´ $10 per hour 80.00 Variable overhead: 8 hours ´ $8 per hour 64.00 Fixed overhead: 8 hours ´ $12 per…
Read MoreStarling Manufacturing has developed the following standards for one of its products. STANDARD VARIABLE COST CARD One Unit of Product Materials: 5 yards ´ $6 per yard $30.00 Direct labor: 2 hours ´ $8 per hour 16.00 Variable manufacturing overhead: 2 hours ´ $5 per hour 10.00 Total standard variable cost…
Read More1. How are standards developed? What is the difference between ideal and currently attainable standards? ANS: Historical experience, engineering studies, and input from operating personnel are three potential sources of quantitative standards. Ideal standards are standards that demand maximum efficiency and can be achieved only if everything operates perfectly. No machine breakdowns, slack, or lack…
Read MoreRegis Corporation uses two materials in the production of its product. The materials, X and Y, have the following standards: Material Standard Mix Standard Unit Price Standard Cost X 3,500 units $1.00 per unit $3,500 Y 1,500 units 3.00 per unit $4,500 Yield 4,000 units During April, the following…
Read MoreFrekko Company collected the following information: Standard costs per unit: Variable overhead 4 machine hours @ $6 per machine hour Fixed overhead 4 machine hours @ $10 per machine hour Actual output 20,000 units Denominator (normal capacity) output 21,000 units Actual machine hours 79,000 machine hours Actual variable overhead cost $540,000 Actual…
Read MoreReynolds Manufacturing Company has the following information pertaining to a normal monthly 10,000 units of: Standard factory overhead rates are based on a normal monthly volume of one standard direct hour per unit. Standard factory overhead rates per direct labor hour are: Fixed $ 6.00 Variable 10.00 $16.00 Units actually produced…
Read MoreBlaster, Inc., manufactures portable radios. Each radio requires 3 units of Part XBEZ52, which has a standard cost of $1.45 per unit. During May, the company purchased 12,000 units of the part for a total of $18,000. Also during May, the company manufactured 3,000 radios, using 10,000 units of part XBEZ52. The direct materials purchases…
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