214) Any difference between the fair market values of the securities and their c

Question

214) Any difference between the fair market values of the securities and their cost is a realized gain or loss.
a. true
b. false

215) The costs of materials and labor that do not enter directly into the finished product are classified as cost of goods sold.
a. true
b. false

216) On May 1, 2011, Stanton Company purchased $50,000 of Harris Company's 12% bonds at 100 plus accrued interest of $2,000. On June 30, 2011, Stanton received its first semiannual interest. On February 1, 2012, Stanton sold $40,000 of the bonds at 103 plus accrued interest.

What are the total proceeds from the February 1, 2012 sale?
a. $41,600
b. $42,000
c. $41,700
d. $40,600

218) Materials must have which two qualities in order to be classified as direct materials?
a. They must be classified as both prime costs and conversion costs.
b. They must be an integral part of the finished product, but can be an insignificant portion of the total product cost.
c. They must be introduced into the process in both work-in-process inventories and finished goods inventories.
d. They must be an integral part of the finished product and be a significant portion of the total product cost.

219) On June 1, $40,000 of treasury bonds were purchased between interest dates. The broker commission was $600. The bonds pay interest at 12%, which is paid semiannually on January 1 and July 1. What is the total cost to be debited to the Investment - Treasury Bonds account?
a. $40,000
b. $40,600
c. $42,600
d. $42,000

Explanation / Answer

14) Any difference between the fair market values of the securities and their cost is a realized gain or loss.

b. false

215) The costs of materials and labor that do not enter directly into the finished product are classified as cost of goods sold.

b. false

216) On May 1, 2011, Stanton Company purchased $50,000 of Harris Company's 12% bonds at 100 plus accrued interest of $2,000. On June 30, 2011, Stanton received its first semiannual interest. On February 1, 2012, Stanton sold $40,000 of the bonds at 103 plus accrued interest.

What are the total proceeds from the February 1, 2012 sale?
a. $41,600
b. $42,000
c. $41,700
d. $40,600

218) Materials must have which two qualities in order to be classified as direct materials?
a. They must be classified as both prime costs and conversion costs.
b. They must be an integral part of the finished product, but can be an insignificant portion of the total product cost.
c. They must be introduced into the process in both work-in-process inventories and finished goods inventories.
d. They must be an integral part of the finished product and be a significant portion of the total product cost.

219) On June 1, $40,000 of treasury bonds were purchased between interest dates. The broker commission was $600. The bonds pay interest at 12%, which is paid semiannually on January 1 and July 1. What is the total cost to be debited to the Investment - Treasury Bonds account?

c. $42,600

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.