Accounting 2101 Final

Powerful Essays
1.) A company is considering the following alternatives: Alternative 1 Alternative 2
Revenues $120,000 $120,000
Variable Costs $60,000 $60,000
Fixed Costs $35,000 $35,000
Which of the following are relevant in choosing between the alternatives?

2.) Adler Company manufactures a product with the following costs: Unit Variable Cost $50 Unit Fixed Cost $24 Total Cost Per unit $74
The company normally sells 10,000 units at a price of $88 each. Adler has a one-time opportunity to sell an additional 3,000 units at $70 each in a foreign market, which would not affect its present sales. If the company has sufficient capacity to produce the additional units, acceptance of the special order would affect net income as follows:

3.) If a company must expand capacity to accept a special order, it is likely that there will be

4.) May company produces 1,000 units of a necessary component with the following costs: Direct Materials $48,000 Direct Labor $32,000 Variable overhead $8,000 Fixed overhead $14,000
May Company could avoid $6,000 in fixed overhead costs if it acquires the components externally. If cost minimization is the major consideration and the company would prefer to buy the components, what is the maximum external purchase price that May Company would accept to acquire at 1,000 units externally?

5.) A company has a process that results in 500 drums of Chemical L that can be sold for $300 per drum. An alternative would be to process Chemical L further at a cost of $25,000 and then sell it for $380 per drum. Should management sell Chemical L now or should Chemical L be processed further and then sold? What is the effect of the action?

6.) The focus of a sell or process further decision

7.) A company is considering replacing old equipment with new equipment. Which of the following is a relevant cost for incremental analysis?

8.) A company has several product lines, one of which reflect the following results:

You May Also Find These Documents Helpful

  • Better Essays

    accounting final

    • 847 Words
    • 3 Pages

    IFRS 8-1: “Basic accounting and reporting issues related to recognition and measurement of receivables, allowance accounts, recording discounts, the allowance method to account for bad debt and factoring are basically the same between IFRS and GAAP. However, the FASB (Financial Accounting Standards Board) and IASB (International Accounting Standards Board) are taking steps by working to implement fair value measurement, the amount they currently could be sold for, for financial instruments. “The…

    • 847 Words
    • 3 Pages
    Better Essays
  • Powerful Essays

    Final Accounting

    • 1555 Words
    • 5 Pages

    Peyton Approved Accounting Final Final Part 1 SALES BUDGET The sales budget is prepared by multiplying the expected unit sales volume for each product by its anticipated unit-selling price. As reflected in Exhibit A noted below and included in the overall Peyton Approved budget worksheet included in Appendix A, Peyton Approved expects sales volume to be 18000, 22000 and 20000 units in the month of July, August and September respectively. The budgeted sales in August exceeded July's sales units…

    • 1555 Words
    • 5 Pages
    Powerful Essays
  • Satisfactory Essays

    Accounting Final

    • 1424 Words
    • 6 Pages

    WwW.DiorBoy.Com All Rights for Abdulmohsen 3- calculate breakeven point ? PROBLEM 8-35 Surreal Sound, Inc. manufactures and sells compact disks. Price and cost data are as follows: Selling price per unit (package of two CDs) $ 25.00 Variable Costs per unit: Direct Materials $ 8.20 Direct Labour 4.00 Manufacturing Overheads 6.00 Selling Expenses 1.60 Total Variable Costs per Unit $19.80 Annual Fixed Costs Manufacturing Overheads $288,000 Selling…

    • 1424 Words
    • 6 Pages
    Satisfactory Essays
  • Better Essays

    Accounting Final

    • 3525 Words
    • 15 Pages

    Section 5 Permutations and Combinations In preceding sections we have solved a variety of counting problems using Venn diagrams and the generalized multiplication principle. Let us now turn our attention to two types of counting problems that occur very frequently and that can be solved using formulas derived from the generalized multiplication principle. These problems involve what are called permutations and combinations, which are particular types of arrangements of elements of a set. The…

    • 3525 Words
    • 15 Pages
    Better Essays
  • Satisfactory Essays

    Final Case Accounting

    • 491 Words
    • 2 Pages

    FINAL CASE ACCOUNTING BY: Mariana Beetar Vélez Halo Corporation Accounting
Professor: Nohora Bohorquez COLEGIO DE ESTUDIOS SUPERIORES DE ADMINISTRACIÓN BOGOTÁ, COLOMBIA 2012 NOTES TO THE FINANCIAL STATEMENTS NOTE No.1 Overall Standard Disclosures The company, HALO CORPORATION, NIT. 126 9077885-01 and primary residence in the city of Bogotá, Colombia. Carrera 5ta No.71 07. Constituted by Escritura Publica of Notary No. 3 dated December 31, 2008, registered with the Chamber…

    • 491 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    COMM 2101 Mike Rowe

    • 354 Words
    • 1 Page

    COMM 2101 MW 8am Reflection Paper Ebbie Belles The phrase “work smart, not hard” has been posted in schools for decades in order to promote education. What Mike Rowe states is that this is putting a negative perspective on jobs that you have to work hard at and get your hands a little dirty for. Some of the jobs that are looked at as dirty actually make more money than someone sitting in a desk job with a bachelor’s degree from some overpriced college. He states that the money we put into education…

    • 354 Words
    • 1 Page
    Satisfactory Essays
  • Powerful Essays

    Accounting Final Paper

    • 3139 Words
    • 13 Pages

    SECTION A Question A1 is COMPULSORY Question A1 Below are extracts from the financial statements of a listed company which operates a chain of bakery and sandwich retail outlets in the United Kingdom. Income statements | |2009 |2008 | | |£’000 |£’000 | |Revenue…

    • 3139 Words
    • 13 Pages
    Powerful Essays
  • Satisfactory Essays

    Final Questions Accounting

    • 14679 Words
    • 185 Pages

    Selected Answer: Answers: [None Given] is a list of all the cash collected and cash paid during a period describes the financial situation of a company at a specific point in time is a summary of all of the revenues minus all of the expenses for an accounting period shows the changes that took place in the amount of shareholders' equity during a period  Question 2 0 out of 0 points A deferral transaction is one in which ________. Selected Answer: Answers: [None Given] a company postpones recognizing…

    • 14679 Words
    • 185 Pages
    Satisfactory Essays
  • Powerful Essays

    Accounting Final Exam

    • 1123 Words
    • 3 Pages

    DOWNLOADACC 349 Final Exam 1) What is the best way to handle manufacturing overhead costs in order to get the most timely job cost information? 2) At the end of the year, manufacturing overhead has been over applied. What occurred to create this situation?3) Luca Company over applied manufacturing overhead during 2006. Which one of the following is part of the year end entry to dispose of the over applied amount assuming the amount is material4) Which of the following would be accounted for using…

    • 1123 Words
    • 3 Pages
    Powerful Essays
  • Good Essays

    accounting final project

    • 1187 Words
    • 5 Pages

    Final Project Apple Inc. (Apple), an extremely successful and profitable American multinational corporation, was founded in the 1970s. As a technology company, it designs, manufactures, and markets personal computers, computer software, mobile phones, digital music players and sells related music software, and sells related product accessories. Furthermore, Apple’s distinguished and well profitable products and services include iPod, iPhone, Mac computers, Apple TV, Xserve, consumer and professional…

    • 1187 Words
    • 5 Pages
    Good Essays