Question

40) Net income in a partnership may not be distributed to the partners: A) In a fixed ratio. B) As a salary allowance. D) In the form of dividends. C) As interest on beginning capital. 41) Simple Sam enters into a partnership by contributing the following: Cash $15,000; Accounts Receivable $4,500; Machinery which cost $5,000 and has a fair market value of $5,100; and accounts payable of $1,000. What amount will be recorded in his capital account? A) S15,000 D) $23,600. C) $14,000. B) $24,600 42) Alton Company produces metal belts. During the current month, the company incurred the following product costs: Raw materials $100,000 Direct labor $75,000 Electricity used in the Factory $25,000 Factory foreperson salary $3,750 Maintenance of factory machinery $2,000 Alton Company's indirect product costs totaled: A) $30,750 C) $75,000 D) $175,000 B) $28,750. 43) In a manufacturing company, the cost of finished goods manufactured is equal to A) The sum of the manufacturing costs charged (debited) to the Work in Process Inventory account during the period. B) The beginning inventory of Work in Process, plus total manufacturing costs for the period, less the ending inventory of Work in Process. C) The begi inventory of finished goods costs of direct materials, direct labor, and manufacturing overhead incurred in inning inventory of finished goods, plus net purchases, less the ending D) The manufacturing the goods sold during the period. 44) Grand Co.'s ending inventory of work in process is twice as large as at the beginning of the period. Therefore A) Total manufacturing costs for the period must exceed the cost of finished goods manufactured 8) The ending inventory of finished goods must be larger than the beginning inventory of finished goods C) Th e cost of finished goods manufactured must be smaller than the cost of goods sold. D) Total manufacturing costs for the period must exceed the cost of goods sold.

Answer 1

question 40 Answer is option D) in the form of dividends net income in company is distributed as Dividend The dividend is paid on equity /preference Share Heid by the share holders In partnership there is no shares and share capital question 41 Answer is option D) 23,600 S 15,000 S 4,500 Machinery (market Value 5,100 Less Accounts Payable (1,000) S 23,600 Cash Account Receivable total capital question 42 Answer is option A) 30,750 Indirect Cost Electricity used in factory 25,000 Factory Foreperson salar S 3,750 Machinery Maintenance S 2.000 s 30,750 Question 43 Answer is option B) The beginning inventory of working process plus total manufacturing cost for the period less ending inventory of Work I process Question 44 Answer is option A) Total manufacturing cost for the period must exceed the cost of finished goods manufactured Explanation :ending Working process is large, thus there will be less finished good manufactured