Archetype Fabrication Makes Pre-Stressed Concrete Forms for the Building Industry

question 76

Multiple Choice

Archetype Fabrication makes pre-stressed concrete forms for the building industry. They use just-in-time production and accounting methodology. At the beginning of January, selected account balances are shown in the T-accounts below. During January, the following 5 transactions take place:
1) Purchase $40,000 of materials on account.
2) Pay out $25,000 of direct labor costs.
3) Incur $9,000 of manufacturing overhead costs.
4) Complete 12 units. Each unit includes $1,500 of materials, $300 of direct labor, and $150 of manufacturing overhead costs.
5) Sell 10 of the 12 completed units at a price of $2,200.
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Use the T-accounts shown above to record the transactions, and then answer the following question:
After transaction number 5, what was the balance in the Finished goods inventory account?

• A) $3,900
• B) $7,400
• C) $13,900
• D) $6,900

Explain how companies manage reported earnings per share and the factors influencing such management.

Analyze the effects of corporate actions (stock dividends, stock splits) on shareholders' equity.

Recognize the reasons behind stock repurchases and their financial statement implications.

Understand the allocation of share-based compensation costs and its reporting requirements.

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Definitions:

Demographic Characteristics

Attributes of populations, such as age, race, gender, and income, often used in research to segment and analyze groups of people.

Significance Level

The probability of rejecting the null hypothesis when it is actually true, denoted as alpha, and often set at 0.05 or 5%.

Fast-Food Chicken Restaurants

Quick service restaurants specializing in chicken dishes, often featuring options like fried chicken, sandwiches, and wraps.

Kruskal-Wallis H Statistic

A nonparametric test used to determine if there are statistically significant differences between two or more groups of an independent variable.