College Accounting, Chapter 1-15 (Looseleaf)
College Accounting, Chapter 1-15 (Looseleaf)
23rd Edition
ISBN: 9781337794800
Author: HEINTZ
Publisher: CENGAGE L
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Chapter 1, Problem 1SEA

PURPOSE OF ACCOUNTING Match the following users with the information needed.

1. Owners    a. Whether the firm can pay its bills on time

2. Managers    b. Detailed, up-to-date information to measure business performance (and plan for future operations)

3. Creditors    c. To determine taxes to be paid and whether other regulations are met

4. Government agencies    d. The firm’s current financial condition

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Craft Company produces a single product. Last year, the company had a net operating income of $90,560 using absorption costing and $80,900 using variable costing. The fixed manufacturing overhead cost was $6 per unit. There were no beginning inventories. If 28,500 units were produced last year, then sales last year were: a. 18,840 units b. 26,890 units c. 30,110 units d. 38,160 units
Suppose Austin Sound had sales of $450,000 and sales returns of $55,000. Cost of goods sold was $176,000. How much gross profit did Austin Sound report?
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