Question

1)

The accountant for Huckleberry Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available:

Retained earnings balance at the beginning of the year	$	157,000
Cash dividends declared for the year		48,400
Net income for the year		95,000

What is the ending balance for retained earnings?

Multiple Choice

$108,600.

$203,600.

$13,600.

$252,000.

$273,000.

2)

Current information for the Healey Company follows:

Beginning raw materials inventory	$	16,700
Raw material purchases		61,500
Ending raw materials inventory		18,100
Beginning work in process inventory		23,900
Ending work in process inventory		29,500
Direct labor		44,300
Total factory overhead		31,500

All raw materials used were traceable to specific units of product. Healey Company's direct materials used for the year is:

Multiple Choice

$79,600.

$62,900.

$78,200.

$61,500.

$60,100.

3)

A company had net income of $44,000, net sales of $340,000, and average total assets of $240,000. Its profit margin and total asset turnover were respectively:

Multiple Choice

12.94%; 1.42.

1.99%; 1.42.

1.42%; 0.18.

1.42%; 12.94.

12.94%; 0.18.

4)

Carpark Services began operations in 20X1 and maintains long-term investments in available-for-sale securities. The year-end cost and fair values for its portfolio of these investments follow. The year-end adjusting entry to record the unrealized gain/loss at December 31, 20X1 is:

Available-for-Sale Securities	Cost			Fair Value
December 31, 20X1	$	340,000		$	331,500
December 31, 20X2	$	412,000		$	422,500
December 31, 20X3	$	482,000		$	540,000

Multiple Choice

Debit Unrealized Gain– Equity $8,500; Credit Fair Value Adjustment – Available-for-Sale (LT) $8,500.

Debit Unrealized Loss – Income $8,500; Credit Fair Value Adjustment – Available-for-Sale (ST) $8,500.

Debit Fair Value Adjustment – Available-for-Sale (LT) $8,500; Credit Unrealized Gain – Equity $8,500.

Debit Unrealized Loss – Equity $8,500; Credit Fair Value Adjustment – Available-for-Sale (LT) $8,500.

Debit Fair Value Adjustment – Available-for-Sale (LT) $8,500; Credit Unrealized Loss – Equity $8,500.

5)

Craigmont Company's direct materials costs are $4,300,000, its direct labor costs total $8,170,000, and its factory overhead costs total $6,170,000. Its conversion costs total:

Multiple Choice

$18,640,000.

$14,340,000.

$10,470,000.

$12,470,000.

$6,300,000.

Answer 1

1) Answer : $203,600

2) Answer : $60,100

3) Answer : 12.94% ; 1.42 times

4) Answer : Debit Unrealized Loss – Equity $8,500; Credit Fair Value Adjustment – Available-for-Sale (LT) $8,500.

5) Answer : $14,340,000

Conversion cost = Direct labor cost + Factory over head cost

                        = $8,170,000 + 6,170,000

Conversion cost = $14,340,000

Explanation : 1)

Explanation : 2)

Explanation : 3)