accounting mcq quiz - Rikki Company received proceeds of $188,000 on 10-year, 6% bonds issued on

Multiple Choice Question 83

Rikki Company received proceeds of $188,000 on 10-year, 6% bonds issued on January 1, 2014. The bonds had a face value of $200,000, pay interest semi-annually on June 30 and December 31, and have a call price of 101. Rikki uses the straight-line method of amortization.

What is the amount of interest Rikki must pay the bondholders in 2014?

$10,800

$13,200

$12,000

$11,200

Multiple Choice Question 85

Garland Company received proceeds of $188,000 on 10-year, 6% bonds issued on January 1, 2013. The bonds had a face value of $200,000, pay interest semi-annually on June 30 and December 31, and have a call price of 101. Garland uses the straight-line method of amortization.
What is the carrying value of the bonds on January 1, 2015?

$190,400

$197,350

$189,200

	$200,000
Multiple Choice Question 86

Brooks Company received proceeds of $188,500 on 10-year, 8% bonds issued on January 1, 2013. The bonds had a face value of $200,000, pay interest semi-annually on June 30 and December 31, and have a call price of 101. Brooks uses the straight-line method of amortization.

Brooks Company decided to redeem the bonds on January 1, 2015. What amount of gain or loss would Brooks report on its 2015 income statement?

$9,200 gain

$11,200 gain

$11,200 loss

$9,200 loss

Multiple Choice Question 74

On January 1, 2014, Lark Corporation purchased 35% of the common stock outstanding of Dinc Corporation for $700,000. During 2014, Dinc Corporation reported net income of $200,000 and paid cash dividends of $100,000. The balance of the Stock Investments—Run account on the books of Lark Corporation at December 31, 2014 is

$735,000.

$700,000.

$665,000.

$770,000.

Multiple Choice Question 97

Agale Combines, Inc. has $40,000 of ending finished goods inventory as of December 31, 2014. If beginning finished goods inventory was $25,000 and cost of goods sold was $75,000, how much would Agale report for cost of goods manufactured?

$65,000

$90,000

$15,000

$115,000

Multiple Choice Question 98

Tracey Inc. applies overhead to production at a predetermined rate of 90% based on direct labor cost. Job No. 130, the only job still in process at the end of August, has been charged with manufacturing overhead of $5,400. What was the amount of direct materials charged to Job 130 assuming the balance in Work in Process inventory is $21,000?

$4,860.

$9,600.

$6,000.

$10,740.

Multiple Choice Question 100

Stanfield Company applies overhead on the basis of 160% of direct labor cost. Job No. 305 is charged with $140,000 of direct materials costs and $240,000 of manufacturing overhead. The total manufacturing costs for Job No. 305 is:

$780,000

$530,000

$764,000

$380,000

Multiple Choice Question 91

Lanbong Manufacturing has recently tried to improve its analysis for its manufacturing process. Units started into production equaled 6,000 and ending work in process equaled 400 units. Long had no beginning work in process inventory. Conversion costs are applied equally throughout production, and materials are applied at the beginning of the process. How much is the materials cost per unit if ending work in process was 25% complete and total materials costs equaled $25,260?

$4.00.

$4.21.

$4.14.

$3.95.

Multiple Choice Question 91

Brusl Co. is planning to sell 400 hair dryers and produce 380 hair dryers during March. Each hair dryer requires 500 grams of plastic and one-half hour of direct labor. Plastic costs $10 per 500 grams and employees of the company are paid $14.00 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Brusl Co. has 300 kilos of plastic in beginning inventory and wants to have 200 kilos in ending inventory. How much is the total amount of budgeted direct labor for March?

$2,660

$5,320

$5,600

$2,800

Multiple Choice Question 93

Jared Manufacturing is planning to sell 1,200 boxes of ceramic tile, with production estimated at 1,120 boxes during May. Each box of tile requires 44 pounds of clay mix and a quarter hour of direct labor. Clay mix costs $0.50 per pound and employees of the company are paid $15.00 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Jacob has 5,200 pounds of clay mix in beginning inventory and wants to have 6,000 pounds in ending inventory.

What is the total amount to be budgeted for direct labor for the month?

$16,800

$4,200

$18,000

$4,500