Accounting Answers

 The cost of patient-days for a small town hospital is listed below. Answer the following questions.

Cost Formula: y = $0.894x + $2,931

• i)  What is the variable cost? __________
• ii)  What is the fixed cost? _________
• iii)  What does x represent? ___________
• iv)  What does y represent? ___________
• v)  Whatistheexpectedcostfor47patient-days? (round to 2 decimal places) _________
• vi)  How many patient-days were there if the total cost was $3,021.29? (round to the nearest day) ________

1. Millicent is planning to travel to the United States of America in 3 years time. She 

estimated that her vacation would cost $1,236,000. Given the existing interest rate of 6%, 

how much money should she invest now?

A. $999,769.43

B. $1,027,869.53

C. $1,037,769.43

D. $1,250,869.53

Which one of the following costs would be classified as an indirect cost of the quality control activity which is undertaken in a company’s factory?

Select one:

A.

The depreciation of the quality testing machine.

B.

The insurance of the factory.

C.

The cost of samples destroyed during testing.

D.

The salary of the quality control machine.

The following transactions of Big Brown, a sole trader, took place from 1 January to 31 December 2015.

- Started business with capital in cash K10 000

- Deposited K8,000 cash into the bank

- Paid for rentals by cheque K2500

- Bought goods and paid by cheque K400

- Paid for stationery in cash K750

- Sold goods and received cash K600

- Bought goods on credit from suppliers K575

- Paid wages by cash K325

- Sold goods on credit to customers K780

- Withdrew K500 cash for personal use

- Paid electricity by cheque K250

Required:

Open the necessary accounts and prepare a trial balance as at 31 December 20X5.

Record the following transactions in the Journal and post them into ledger and prepare a Trail Balance

Oct 1st : Neel started business with a capital of 80,000

3rd : Bought goods from Karl on credit 20,000

4th : Sold goods to Tarl 25,000

5th : Cash purchases 25,000

7th : Cash sales 15,000

9th : Goods retuned to Karl 2,000

10th : Bought furniture for 15,000

11th : Cash paid to Karl 12,000

12th : Goods returned by Tarl 3,000

14th : Goods taken by Neel for personal use 3,000

15th : Cash received from Tarl 12,000

16th : Took loan from Parl 30,000

17th : Salary paid 5,000

18th : Bought stationery for 1,000

19th : Amount paid to Parl on loan account 18,000

20th : Interest received 4,000

what Is Accounting?

From the given information

Amount in Lakhs

cost of goods sold 580

opening stock 40

closing stock 70

creditors at the beginning of the year 60

creditors at the end of the year 100

cash purchases 45

Original cost of equipment sold 400

Gain on the equipment sold 50

Accumulated depreciation on the equipment 80

Calculate:

a. Total purchases, credit purchases and payment to creditors (5 Marks)

b. Define the term Net book value, Accumulated depreciation calculate the net book value

and cash proceeds from sale of investment (5 Marks)

On June 1, 2020, the Crocus Company began construction of a new manufacturing plant. The plant was completed on October 31, 2021. Expenditures on the project were as follows ($ in millions):

July 1, 2020

54

October 1, 2020

22

February 1, 2021

30

April 1, 2021

21

September 1, 2021

20

October 1, 2021

6

On July 1, 2020, Crocus obtained a $70 million construction loan with a 6% interest rate. The loan was outstanding through the end of October, 2021. The company's only other interest-bearing debt was a long-term note for $100 million with an interest rate of 8%. This note was outstanding during all of 2020 and 2021. The company's fiscal year-end is December 31.

What is the amount of interest that Crocus should capitalize in 2020, using the specific interest method?

A) $1.90 million.

B) $1.95 million.

C) $2.96 million.

D) None of these answer choices are correct.

Where would an REA diagram for the production cycle depict the list of ingredients for making a product?

A. In the bill of materials table

B. In the raw materials table

C. In the work in process table

D. In the finished goods table

ABC uses job-order costing. It applies overhead cost to jobs on the basis of direct

labor-hours. The following transactions took place during the year:

A.   $300,000 of raw materials were purchased on account

B.   Raw materials were issued into production: $90,000 direct materials and

$40,000 indirect materials

C.   Labor costs incurred: $40,000 direct, $130,000 indirect, sales commissions

$50,000, administrative salaries $100,000

D.   Utility costs for the factory were $60,000

E.    Depreciation recorded was $300,000 (70% related to factory; 30% related

to administrative offices)

F.    Manufacturing overhead of $715,000 was applied to production. Actual

direct labor-hours incurred were 22,000.

G.   Units costing $300,000 were completed and transferred into the finished

goods inventory.

H.   Goods with a cost of $150,000 were sold on account for $200,000.

I.      Closed the under/overapplied overhead for the year