Concept explainers
Allocation and measurement terms
C1
In each blank next to the following terms, place the identifying letter Of its best description.
_________1. Cost center
_________2. Investment center
_________3. Departmental accounting system
_________4. Operating department
_________5. Profit center
_________6. Responsibility accounting system
_________7. Service department
A. Incurs costs without directly yielding revenues.
B. Provides information used to evaluate the performance of a department.
C. Holds manager responsible for revenues, costs, and investments.
D. Engages directly in manufacturing or in making sales directly to customers.
E. Does not directly manufacture products but contributes to profitability of the entire company.
F. Incurs costs and also generates revenues.
G. Provides information used to evaluate the performance of a department manager.

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Chapter 24 Solutions
WORKING PAPERS F/ FUND ACCOUNTING
- Use the following data to determine the total dollar amount of assets to be classified as current assets. Marigold Corp. Balance Sheet December 31, 2025 Cash and cash equivalents Accounts receivable Inventory $67000 Accounts payable $126000 86500 Salaries and wages payable 11100 149000 Bonds payable 161500 Prepaid insurance 83000 Total liabilities 298600 Stock investments (long-term) 193000 Land 199500 Buildings $226000 Common stock 309400 Less: Accumulated depreciation (53500) 172500 Retained earnings 475500 Trademarks 133000 Total stockholders' equity 784900 Total assets $1083500 Total liabilities and stockholders' equity $1083500 ○ $269100 $385500 ○ $236500 ○ $578500arrow_forwardShould the machine be replaced?arrow_forwardUsing the following balance sheet and income statement data, what is the total amount of working capital? Current assets $39700 Net income $52100 Current liabilities 19800 Stockholders' equity 96700 Average assets 198400 Total liabilities 52100 Total assets 148800 Average common shares outstanding was 18600. ○ $9900 ○ $39700 ○ $19900 ○ $12400arrow_forward
- Suppose that Old Navy has assets of $4265000, common stock of $1018000, and retained earnings of $659000. What are the creditors' claims on their assets? ○ $2588000 ○ $3906000 ○ $1677000 ○ $4624000arrow_forwardBrody Corp. uses a process costing system. Beginning inventory for January consisted of 1,400 units that were 46% completed. 10,300 units were started during January. On January 31, the inventory consisted of 550 units that were 77% completed. How many units were completed during the period?arrow_forwardCurrent Attempt in Progress Whispering Winds Corp. has five plants nationwide that cost $275 million. The current fair value of the plants is $460 million. The plants will be reported as assets at $735 million. O $460 million. $275 million. O $185 million.arrow_forward
- Based on the following data, what is the amount of current assets? Accounts payable $62000 Accounts receivable 116000 Cash 66000 Intangible assets 116000 Inventory 142000 Long-term investments 161500 Long-term liabilities 199000 Short-term investments 85000 Notes payable 56500 Property, plant, and equipment 132000 Prepaid insurance 2500arrow_forwardCalculate the firm's estimated free cash flowarrow_forward#10. Recall that Unique Industries had estimated $1,055,000 of MOH for the year and 64,500 DL hours, resulting in a predetermined MOH rate of $14/DL hour. By the end of the year, the company had actually incurred $925,000 of MOH costs and used a total of 64,000 DL hours on jobs. By how much had Unique Industries overallocated or underallocated MOH for the year? Part 1 Compute the underallocated or overallocated overhead. (Use parentheses or a minus sign for overallocated overhead.) Actual MOH – Allocated MOH = (Over) Under Allocated - =arrow_forward
- Sterling Equipment Ltd. purchased machinery for $80,000 with a salvage value of $5,000 and a 6-year useful life. The company initially used the straight-line method, but after two years, switched to the double-declining balance method. What is the depreciation expense for Year 3?arrow_forwardHow many units were completed during the period?arrow_forwardI need correct answer general accounting questionarrow_forward
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