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.