Summary: Accounting For Non-Financial Managers

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• Alberta Inc. Has sales of $1,000,000, operating profit of $50,000, interest expense of $12,500, tax expense of $7,500, total equity of $200,000, and total debt of $300,000. Long-term assets had cost $500,000 and had a written-down value of $400,000. Current assets consisted of inventory of $70,000 and account receivable of $30,000. The company's inventory holding period (to the nearest day) is:34 days11 days26 days18 days  

  26 days

• Hernandez inc. Manufactures 5 models of picture frames, for a total of 12,000 frames per year. The unit cost to produce a metal frame follows:Direct Materials:     $4Direct Labour          $5Variable Overhead    1Fixed Overhead (60% unavoidable)     6  Total                                             $16A local company has offered to supply Hernandez the 12,000 metal frames it needs for $10 each.Calculate the total cost of buying from the local company.120,00072,000192,000163,200

  • 163,200

• The assembly department has the following production and cost data for the current month:Beginning Work in Process Units     0Units Transferred Out     42,150Ending Work in Process  35,700Materials are entered at the beginning of the process. The ending work in process units is 73% complete as to conversion costs.Calculate the equivalent units of production for conversion costs. (Round your answer to the closet dollar, and no commas)

  68211

• In June, ABC Company bought a truck at the beginning of the month. Amortization on the truck was calculated to be $529. The expected life of the truck was 4 years, with no residual value and the amortization expense was based on the straight-line model. The cost of the truck was:(No commas)

  25392

• For Biswell Company, variable costs are 61% of sales and fixed costs are $177,000. Calculate the required sales in dollars that are needed to achieve management's target operating income of $75,900.(Use the contribution margin approach)  $453846.15$530169.23$648461.54$194615.38  

  648461.54

• Which one of the following correctly describes job-order costing?Select one:Homogeneous goods are being producedHave distinguishing characteristicsLarge batches are producedA series of connected manufacturing processes is necessary

  Have distinguishing characteristics

• In the absorption cost approach, the mark-up percentage covers the:Desired ROI and fixed costsThe desired ROI onlyDesired ROI and selling administrative expensesSelling and administrative expenses only

  Desired ROI and selling administrative expenses

• If a payback period for a project is greater than its expected useful life, the:The project would only be accepted if the company's cost of capital was lowThe project's return will always exceed the company's cost of capitalThe project will always be profitableThe entire initial investment will not be recovered  

  The entire initial investment will not be recovered

• What is the present value of $8,000 received in 7 years at 8% interest? (Round answer to 0 decimal places, and COMMAS)

  4,668

• Conan Bardwell will receive $1,000 in 6 years from an investment that returns 12%. How much did he invest?

  507