accounting-The following information relates to Chesapeake Inc.:

QUESTION

ACCT 221 Quiz 2

Please answer in the Answer Sheet provided at the end
of the Question booklet. Submit the Answer Sheet only through Quiz 2 Assignment
link in LEO.
Do NOT submit the entire Question Booklet. If you do
so, you will have a 5 point deduction. All work must be submitted as a Word
document. HANDWRITTEN WORK WILL NOT BE ACCEPTED.
Deadline: 11.59
pm, Sunday NOVEMBER 22

I will accept late work up to 2 hours after the
deadline with an automatic 10 point penalty. After that, you will receive a zero for this
Quiz.

1 ) The following information relates to Chesapeake Inc.:

Advertising Costs

$10,270

Administrative Salaries

24,700

Delivery Vehicle Depreciation

1,027

Factory Repair and Maintenance

910

Indirect Labor

11,700

Indirect Materials

9,360

Manufacturing Equipment Depreciation

2,080

Office Rent

61,100

President’s Salary

40,300

Sales Revenue

450,000

Sales Salary

4,500

How much were Chesapeake Inc.’s period costs?
A) $141,897
B) $474,050
C) $615,947
D) $61,503

2) ABC corporation has 2,000 shares, 10% preferred stock of
$50 par, and 6,000 shares of common stock outstanding. The net income for the
year is $250,000. Earnings per share. is
A) $50
B) $40
C) $42
D) $125

3) The net income for ShaminaTutorial Services for the year
ended was $500,000. The company has no preferred stock. Common stockholders’
equity was $1,000,000 at the beginning of the year and $2,000,000 at the end of
the year. Calculate the return on common stockholders’ equity.
A) 18.75%
B) 20.00%
C) 21.43%
D) 33.33%
4) NHL Geological Services has net sales on account of $1,200,000. The
average net accounts receivable are $600,000. Calculate the days’ sales in
receivables.
A) 439.8 days
B) 304.0 days
C) 182.5 days
D) 8.7 days

5) Benjamin Sports
Camp Inc.. provides the following data:

2015

2014

Cash

$21,000

$18,000

Accounts Receivable, Net

31,000

35,000

Merchandise Inventory

53,000

25,000

Property, Plant, and Equipment, Net

120,000

90,000

Total assets

$225,000

$168,000

Net credit sales

$240,000

Cost of Goods Sold

(110,000)

Gross profit

$130,000

Calculate days’ sales in inventory for 2015.
A) 252.2
B) 176.3
C) 0.008
D) 129.4

6) Benjamin Sports Camp Inc. provides the following data:

2015

2014

Cash

$40,000

$25,000

Accounts Receivable, Net

98,000

62,000

Merchandise Inventory

70,000

50,000

Property, Plant, and Equipment, Net

180,000

120,000

Total assets

$388,000

$257,000

Net credit sales

$240,000

Cost of Goods Sold

(110,000)

Gross profit

$130,000

Calculate accounts receivable turnover ratio for the year
2015.
A) 5 times
B) 4 times
C) 3 times
D) 2 times

7) Benjamin Sports
Camp Inc. provides the following data:

2015

2014

Assets

Current Assets:

Cash and Cash Equivalents

$29,000

$25,000

Accounts Receivable, Net

31,000

62,000

Merchandise Inventory

53,000

50,000

Total Current Assets

$113,000

137,000

Property, Plant, and Equipment, Net

120,000

120,000

Total Assets

$233,000

257,000

Net sales

$500,000

Cost of Goods Sold

(150,000)

Gross profit

$350,000

Calculate the asset turnover for the year 2015.
A) 7.27 times
B) 1.22 times
C) 1.55 times
D) 2.04 times

8) Maryland Inc. provides the following income statement
for the year 2015:

2015

Net Sales

$240,000

Cost of Goods Sold

110,000

Gross Profit

$130,000

Operating Expenses:

Selling Expenses

45,000

Administrative expenses

12,000

Total Expenses

57,000

Operating Income

$73,000

Other Revenues and (Expenses):

Loss on sale of capital assets

(23,000)

Interest Expense

(1,000)

Total Other Revenues and (Expenses)

(24,000)

Income Before Taxes

$49,000

Income Tax Expense

5,000

Net Income

$44,000

Calculate the times-interest-earned ratio.
A) 25 times
B) 30 times
C) 45 times
D) 50 times

9) The following information relates to Chesapeake Inc

Advertising Costs

$10,270

Sales Salary

4,500

Sales Revenue

450,000

President’s Salary

40,300

Office Rent

61,100

Manufacturing Equipment Depreciation

2,080

Indirect Materials

9,360

Indirect Labor

11,700

Factory Repair and Maintenance

910

Direct Materials

28,080

Direct Labor

35,100

Delivery Vehicle Depreciation

1,027

Administrative Salaries

24,700

How much were Chesapeake Inc’s product costs?
A) $141,897
B) $697,127
C) $229,127
D) $87,230

10) The following information relates to Chesapeake Inc.:

Advertising Costs

$10,270

Sales Salary

4,500

Sales Revenue

450,000

President’s Salary

40,300

Office Rent

61,100

Manufacturing Equipment Depreciation

2,080

Indirect Materials

9,360

Indirect Labor

11,700

Factory Repair and Maintenance

910

Direct Materials

28,080

Direct Labor

35,100

Delivery Vehicle Depreciation

1,027

Administrative Salaries

24,700

How much was Chesapeake Inc’s manufacturing overhead?
A) $21,060
B) $21,970
C) $24,050
D) $141,897

11) At the beginning of 2015, Jakob Medical Company’s Work-in-Process Inventory account
had a balance of $120,000. During 2015, $250,000 of direct materials were used
in production, and $75,000 of direct labor costs were incurred. Manufacturing
overhead amounted to $850,000. The cost of goods manufactured was $675,000.
What is the balance in the Work-in-Process Inventory account on December 31,
2015?
A) $230,000
B) $1,295,000
C) $675,000
D) $620,000

12) Sadie Literary Services Company’s selected cost data
for 2015 are shown below:

Work-in-Process Inventory, Jan. 1, 2015

$5,640

Direct Materials Used

105,000

Work-in-Process Inventory, Dec. 31, 2015

2,870

Cost of Goods Manufactured

193,200

Assuming manufacturing overhead costs of $27,850, what is
the amount of direct labor incurred by Sadie Literary Services Company in 2015?
A) $63,120
B) $190,430
C) $57,580
D) $79,690

13) Brielle Inc. reports the following cost information for
March:

Cost of Goods Manufactured

$75,000

Manufacturing Overhead

18,250

Finished Goods Inventory, March 1

4,500

Finished Goods Inventory, March 31

2,650

Work-in-Process Inventory, March 1

9,670

Work-in-Process Inventory, March 31

1,250

Direct Materials Used

25,300

What is the cost of goods sold for March?
A) $83,420
B) $73,150
C) $76,850
D) $82,150

14) Baltimore Inc.
reports the following cost information for March:

Cost of Goods Manufactured

$75,000

Manufacturing Overhead

18,250

Finished Goods Inventory, March 1

4,500

Finished Goods Inventory, March 31

2,650

Work-in-Process Inventory, March 1

9,670

Work-in-Process Inventory, March 31

1,250

Direct Materials Used

25,300

What is the amount of direct labor incurred by Baltimore
Inc. in March?
A) $29,600
B) $39,870
C) $126,970
D) $23,030

15) Felix Company uses the indirect method to prepare the
statement of cash flows. Refer to the following income statement:

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Additional information provided by the company includes the
following:
1) Current assets, other than cash, increased by $24,000
2) Current liabilities decreased by $1,000
How much is the net cash provided by operating activities?
A) $21,000
B) $34,000
C) $29,000
D) $39,000

16) Rodriguez Inc uses
the indirect method to prepare its statement of cash flows. Refer to the
following portion of the comparative balance sheet:

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Additional information provided by the company includes the
following:
1) Equipment costing $65,000 was purchased for cash.
2) Equipment with a cost of $32,000 and accumulated
depreciation of $7,000 was sold for $45,000.
What was the amount of net cash provided by (used for)
investing activities?
A) $120,000
B) $20,000
C) $(120,000)
D) $(20,000)

17) Morgana Engineering sold equipment for cash. The income statement
shows a loss on sale of $7,000. The net book value of the asset prior to the
sale was $26,900. Which of the following statements describes the cash effect
of the transaction?
A) positive cash flow of $33,900 from financing activities
B) negative cash flow of $19,900 for operating activities
C) negative cash flow of $19,900 for financing activities
D) positive cash flow of $19,900 from investing activities

18) Avatar Company
is preparing its statement of cash flows using the indirect method. Refer to
the following portion of the comparative balance sheet:

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Additional information provided by the company includes the
following:
1) During 2014, the company repaid $35,000 of Long-Term
Notes Payable.
2) During 2014, the company borrowed $27,000 on a new Note
Payable.

Based on the above information only, what amount of net
cash flow would be shown in the financing section of the statement of cash
flows?
A) $(8,000)
B) $8,000
C) $62,000
D) $(62,000)

19) Avatar Company uses the indirect method to prepare its
statement of cash flows. Refer to the following portion of the comparative
balance sheet:

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Note:
1) There was no retirement of stock during the year.
2) There were no sales of treasury stock during the year.
Which of the following statements would be true?
A) There was zero net cash flow from transactions involving
Common Stock.
B) There was a negative cash flow of $4,000 from the
issuance of Common Stock.
C) There was a positive cash flow of $4,000 from the
issuance of Common Stock.
D) There was positive cash flow of $16,000 from issuance of
Common Stock.

20) Taylor Company follows the indirect method to prepare
its statement of cash flows. Refer to the following portion of the comparative
balance sheet:

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Note: Net Income for the year was $89,000.
Based on the above information, calculate the dividends
declared during the year 2014.
A) $3,000
B) $89,000
C) $65,000
D) $24,000

21) Vatsala Company uses the direct method for its
statement of cash flow. It reports the following information regarding the year
2014:

From the income statement:
Sales Revenues, $265,000
Cost of Goods Sold, $210,000
Operating expenses, $31,000

From the balance sheet:

Beginning
Balance

Ending Balance

Accounts Receivable:

$14,500

$17,800

Inventory:

23,500

17,800

Accounts Payable:

6,000

13,500

Accrued Liabilities:

4,000

1,500

On the statement of cash flows, what amount will be shown
for collections from customers?
A) $261,700
B) $268,300
C) $265,000
D) $32,300

22) Vatsala Company uses the direct method for its
statement of cash flow. It reports the following information regarding the year
2014:

From the income statement:
Sales Revenues, $265,000
Cost of Goods Sold, $210,000
Operating expenses, $31,000

From the balance sheet:

Beginning
Balance

Ending Balance

Accounts Receivable:

$14,500

$17,800

Inventory:

23,500

17,800

Accounts Payable:

6,000

13,500

Accrued Liabilities:

4,000

1,500

On the statement of cash flows, what amount will be shown
for payments to suppliers for inventory purchases? (Assume that Accounts
Payable are for purchases of inventory only.)
A) $204,300
B) $211,800
C) $196,800
D) $208,200

23) During September, the Finishing Department of
Perry Hall Company had beginning transferred in units of 500 units with
costs of $125,000. During the month, 800 units were transferred in from the
Milling Department with transferred in costs of $200,000. It had 400 units in
ending Work-in-Process Inventory. What is the total cost of production for the
units transferred to the Finishing Department in September under the first-in,
first-out (FIFO) method?
A) $258,336
B) $125,000
C) $75,000
D) $150,000

24) The Polishing Department of Kevin Wood Works had 15,000
units in process on June 1 and received 25,000 units from the Machining
Department. What is the number of units to account for by the Polishing
Department for June?
A) 25,000 units
B) 15,000 units
C) 40,000 units
D) 10,000 units

24) Dennis Paints
has two processes—Coloring Department and Mixing Department. Dennis assigned
$385,000 to the 5,500 gallons of paint transferred from Mixing Department to
Finished Goods Inventory. The journal entry to record completion of processing
is:
A) debit Work-in-Process Inventory—Mixing, $385,000; credit
Finished Goods Inventory, $385,000.
B) debit Finished Goods Inventory, $385,000; credit Cost of
Goods Sold, $385,000.
C) debit Cost of Goods Sold, $385,000; credit Finished
Goods Inventory, $385,000.
D) debit Finished Goods Inventory, $385,000; credit
Work-in-Process Inventory—Mixing, $385,000.

SEE ANSWER SHEET ON NEXT PAGE

ACCT 221 Quiz 1

Answer Sheet
Name: (3 point
deduction if no name is provided here)
Part 1(Do Not show
your computations here in Part 1. Computations must be shown in Part 2 of this
Answer Sheet)

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25

Part 2
Submit Your supporting Computations here. They must be
typed as part of this Word document. HANDWRITTEN WORK WILL NOT BE ACCEPTED ( 5
point penalty if computations are not shown here)

There are only 2 questions in this quiz, #19 and #25 that
don’t require computations. The remaining 23 questions require computations and
you need to show them here. Eg: if your
answer to a question is 10 and you had to add 5+5=10 to get to the answer, then
I need to see that.

Please cross reference your supporting computations with the
appropriate question number. These computations are an integral part of this
quiz.

Failure to submit
computations fully will result in significant loss of points.

 

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