Question 1 (4 points)Mountain Milk Co. acquired land, buildings, and equipment for a lump sum price of $210,000. At the ...

Get help with any kind of assignment - from a high school essay to a PhD dissertation

  1. Order Custom Essay, Course Work, Research and Term Papers

ACCT 310-Mountain Milk Co. acquired land, buildings

April 14, 2018

Question 1 (4 points)

Mountain Milk Co. acquired land, buildings, and equipment for a lump sum price of $210,000. At the time of acquisition, the land was appraised at $80,000, the buildings at $100,000, and the equipment at $60,000. The cost that should be assigned to the equipment is:

  • $52,500
  • $87,000
  • $60,000
  • $70,000

Question 2 (4 points)

In constructing a warehouse for its own use, Ridgeway Company incurred material costs of $25,000, direct labor costs of $60,000, and interest on funds borrowed for construction of $7,200. Ridgeway’s fixed overheat rate is 40% of direct labor. Ridgeway was operating at full capacity during the construction. An outside contractor had bid $120,000 to build the warehouse. The capitalized cost of the warehouse should be:

  • $120,000
  • $116,200
  • $109,000
  • $92,200

Question 3 (4 points)

A company had the following information for the current year:

Beginning inventory: $50,000

Purchases: $45,000

Purchase returns: $3,000

Freight-in: $2,000

Freight-out: $1,000

Ending inventory: $37,000

The amount of cost of goods sold for the current year is:

  • $55,000
  • $56,000
  • $57,000
  • $58,000

Question 4 (4 points)

Which inventory cost flow method more closely matches the current cost of replacing inventory with the cost of goods sold when prices are changing?

  • LIFO
  • FIFO
  • Weighted-Average
  • Not enough information to determine

Question 5 (4 points)

In a periodic inventory system, to what account are purchases debited?

InventoryCost of Goods SoldPurchasesAccounts PayableTrue

False

Question 9 (2 points)

The LIFO perpetual and LIFO periodic methods usually resulting different ending inventory values if sales and purchases are made throughout the month.

  • True
  • False

Question 10 (2 points)

If a company acquires two assets in a lump sum purchase, it should capitalize each asset at its fair value.

  • True
  • False

Question 11 (2 points)

An asset acquired by a deferred payment plan may be recorded at the present value of the deferred payments, which is determined by discounting the payments at an appropriate rate of interest.

  • True
  • False

Question 12 (2points)

If an exchange of nonmonetary assets lacks commercial substance, a company must recognize a loss in full on the exchange but gains only to the extent that cash is involved.

TrueFalseA physical inventory count should be made at least once a year.The Merchandise Inventory account in the year-end trial balance represents ending inventory.The inventory account in the year-end trial balance represents beginning inventory.Material freight-in costs should be treated as an inventory cost.

Question 14 (2 points)

The Osage Company uses the sum-of-the-years’ digits method of depreciation and computes depreciation to the nearest whole year. What amount should Osage record for second-year depreciation of a chain saw (purchased in April) costing $500, with an expected life of 5 years and an expected residual value of $50.

  • $120
  • $150
  • $100
  • $132

Question 15 (2 points)

Company A and Company B each purchased a $50,000 asset with an expected life of 10 years on January 1, 2011. Company A uses the straight-line method, and Company B uses the double-declining balance method. Each company has the same sales and expenses other than the depreciation on this asset in 2011. Which of the following statements is true?

  • Company A’s method is appropriate for an asset whose benefits are expected to decline over the periods of use.
  • Company B’s 2011 net income is lower than Company A’s.
  • Company A and Company B has the same net income.
  • Company B uses an activity method of depreciation.

Question 16 (2 points)

The depreciable cost of an asset does not include:

  • Maintenance costs
  • Acquisition costs
  • Installation costs
  • Cost of preparation for use










OUR SERVICE CHARTER






  • Money Back Guarantee

    If any of our writers deliver an incomplete or ambiguous paper that is off the topic, our clients can claim for a refund in regard to the oversight. We do not compromise our service delivery through submission of a paper that does not follow our clients’ instructions. We also mind about the interest of our customers, and we always give them value for their money. However, our clients have a choice to request for a free revision within 14-30 days, or depending on the length of the submitted paper. A client who needs a refund should send a request for it within 14 days after receiving the completed paper. If a client decides not to download the paper, then they can request for 100% refund. Any refunded amount usually goes to the client’s Bonus Balance as store credit. There is always extra compensation when the refund takes the form of store credit. Alternatively, the refunded amount can also go the client’s credit card.

  • 100% Plagiarism-Free Guarantee

    We deliver top-quality essays through employing various measures that seek to improve the content of a given assignment. One of the quality-control systems that we use entails plagiarism checkers. These systems help us to deliver a 100% plagiarism-free papers to our clients. We also value the originality of papers, and we do not resell any submitted paper. It means that every client always gets a unique paper. Additionally, our perfect team of writers is usually keen on the academic writing standards as well as the instructions brief that a client submits. Our team of writers holds matchless competence when it comes to its service delivery. Every member of the team usually has an academic degree, and the team’s diversified skills make it possible for us to have a qualified writer in any client’s area of study. Additionally, our past clients have always given a positive feedback on each of our writers.

  • Free Revisions

    The papers that we deliver usually reflect a high quality level. However, there is always a room for any additional fine-tuning touch in line with a client’s preference without any additional charges. To begin with, a client has discretion to make a choice on their preferred top writer from our team. Such a writer could have handled past work for the client and received a positive review from the same. It means that the client has confidence of the quality of service that the writer delivers. Secondly, a client has an option of making use of our editing services. Our editors are always on standby to revise the paper and ensure that it matches with the expectations of a client that the instruction brief had detailed. The revision covers content adjustment that removes off-topic details, addition of sources, removal of language style errors, and assessment of the referencing style in order to enhance compliance.

  • 24/7 Customer Support

    Our team of writers prides in high-level competence. The writers have the required expertise that enables them to deliver quality papers that match with the requirements of the grading rubric. In the absence of the rubric, we ensure that the writers follow the clients’ instruction brief to the letter. We can confidently assure our clients to expect nothing short of a pass from the papers that we deliver. Importantly, we have qualified writers who handle different areas of study. This diversification enables us to allot clients’ orders to the writer who is well seasoned in the subject area of study. It also enables the team to become more professional due to specialization. Our clients should put their trust in our service delivery and expect to successfully attain high grades at all times. The fact that we offer free revision reflects our dedication in delivering high quality papers that match with our clients’ expectations.




Related Questions