Question: Alice Oritz is the advertising manager for

> Giovanni Lofaro is a contractor specializing in custombuilt Jacuzzis. On May 1, 2020, his ledger contains the following data: Prepare entries in a job-order cost system and cost of goods manufactured schedule. Raw Materials Inventory â€&brvba

> Tel Corp. has the following estimated costs for 2020: Calculate the predetermined overhead rate and job cost. Direct materials …………………………….. $ 160,000 Direct labour ………………………………… 2,000,000 Rent on factory building …………………… 150,000 Sales salaries …………………

> For the year ended December 31, 2020, the job cost sheets of Mazzone Company contained the following data: Prepare entries in a job-order cost system and a partial income statement. Other data: 1. Raw materials inventory totalled $20,000 on January 1.

> Lowry Manufacturing uses a job-order cost system and applies overhead to production on the basis of direct labour hours. On January 1, 2020, Job No. 25 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct

> Robert Buey became chief executive officer of Phelps Manufacturing two years ago. At the time, the company was reporting lagging profits and Robert was brought in to “stir things up.” The company has three divisions: electronics, fibre optics, and plumbi

> Olin Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission of 18% of sales. The forecast income statement for the year ending December 31, 2020, is as follows: Determine the co

> Vargas Corporation's fiscal year ends on June 30. The following accounts are found in its job-order cost accounting system for the first month of the new fiscal year: Analyze manufacturing accounts and determine missing amounts. Other data: 1. On July

> Red Fire Inc. produces fire trucks. The company uses a normal job-order costing system to calculate its cost of goods manufactured. The company's policy is to price its job at cost plus 30% markup. On January 1, 2020, there was only one job in process, w

> Agassi Company uses a job-order cost system in each of its three manufacturing departments. Manufacturing overhead is applied to jobs on the basis of direct labour cost in Department D, direct labour hours in Department E, and machine hours in Department

> On November 30, 2020, there was a fire in the factory of Able Manufacturing Limited, where you work as the controller. The work in process inventory was completely destroyed, but both the materials and finished goods inventories were undamaged. Analyze a

> Nicole Limited is a company that produces machinery to customer orders, using a normal job-order cost system. It applies manufacturing overhead to production using a predetermined rate. This overhead rate is set at the beginning of each fiscal year by fo

> In January, Reyes Tool & Die requisitions raw materials for production as follows: Job 1 $900, Job 2 $1,400, Job 3 $700, and general factory use $800. Prepare a summary journal entry to record raw materials used. Prepare an entry for the assignment of ra

> Enos Inc. is a construction company specializing in custom patios. The patios are constructed of concrete, brick, fibreglass, and lumber, depending on customer preference. On June 1, 2020, the general ledger for Enos Inc. contains the following data: Pre

> For the year ended December 31, 2020, the job cost sheets of DeVoe Company contained the following data: Prepare entries in a job-order cost system and a partial income statement. Other data: 1. Raw materials inventory totalled $15,000 on January 1. Du

> Bertrand Manufacturing uses a job-order cost system and applies overhead to production on the basis of direct labour costs. On January 1, 2020, Job No. 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: dir

> The consulting firm CMA Financial employs 40 full-time staff. The estimated compensation per employee is $105,000 for 1,750 hours. It charges all direct labour costs to clients. It includes any other costs in a single indirect cost pool and allocates the

> Newton Cellular Ltd. manufactures and sells the TopLine cellphone. For its 2020 business plan, Newton Cellular estimated the following: Determine the contribution margin, break-even point, and target operating income. Selling price ……………………………… $750 Var

> John Bourcier operates a small machine shop. He manufactures one standard product that is also available from many other similar businesses, and he also manufactures deluxe products to order. His accountant prepared the following annual income statement:

> Easy Decorating uses a job-order costing system to collect the costs of its interior decorating business. Each client's consultation is treated as a separate job. Overhead is applied to each job based on the number of decorator hours incurred. Listed bel

> Pedro Morales and Associates, a CPA firm, uses joborder costing to capture the costs of its audit jobs. There were no audit jobs in process at the beginning of November. Listed below are data concerning the three audit jobs conducted during November: Det

> Shown below are the job cost-related accounts for the law firm of De Witte, Ozols, and Morton and their manufacturing equivalents: Prepare entries for costs of services provided. Law Firm Accounts ………………………….. Manufacturing Firm Accounts Supplies ………………

> Laubitz Company begins operations on April 1. Information from job cost sheets shows the following: Calculate work in process and finished goods from job cost sheets. Each job was sold for 25% above its cost in the month following completion. Instruct

> Use the data for ITA International from BE9.7, but assume that the units being requested are special high-performance units, and that the division’s variable cost would be $24 per unit. What is the minimum transfer price that the machining division shoul

> If ITA’s assembly division is currently buying from an outside supplier at $75 per unit, what will be the effect on overall company profits if internal sales for 400 units take place at the optimum transfer price? Determine effect of transfer on profit.

> Part 1 Waterways uses time and material pricing when it bids on drainage projects. Budgeted data for 2020 for installation division 1 are as follows. Waterways desires a $23 profit margin per hour of labour and 25% profit on materials. Materials are tr

> Paying for parking your car is never pleasant, but it hurts a lot when you have to pay to park your vehicle when you go to the hospital, either to visit someone who is ill or as a patient yourself. Many publicly funded hospitals in Canada charge visitors

> Giant Airlines operates out of three main “hub” airports in Canada. Recently, Mosquito Airlines began operating a flight from Smallville into Giant’s Metropolis hub for $360. Giant Airlines offers a price of $595 for the same route. The management of Gia

> Kosinksi Manufacturing carries no inventories. Its product is manufactured only when a customer's order is received. It is then shipped immediately after it is made. For its fiscal year ended October 31, 2020, Kosinksi's break-even point was $1,350,000.

> Construction on the Atlantis Full-Service Car Wash is nearing completion. The owner is Jay Giolti, a retired accounting professor. The car wash is strategically located on a busy street that separates an affluent suburban community from a middle-class co

> Future Industries operates as a decentralized, vertically integrated, multidivisional company. One of its divisions, the systems division, manufactures scientific instruments and uses the products of two of the other divisions. The board division manufac

> At May 31, 2020, the accounts of Hannifan Manufacturing Company show the following: Prepare cost of goods manufactured schedule and partial financial statements. 1. May 1 inventories—Finished Goods $12,600, Work in Process $17,400, and Raw Materials $8,2

> National Industries is a diversified corporation with separate operating divisions. Each division’s performance is evaluated based on its total dollar profits and return on division investment. The WindAir division manufactures and sell

> The machining division of ITA International has a capacity of 2,000 units. Its sales and cost data are: Determine minimum transfer price. Selling price per unit ………………………………………… $ 80 Variable manufacturing costs per unit ………………….. 25 Variable selling co

> Solco Industries is a decentralized company with two divisions: mining and processing. They are both evaluated as profit centres. The mining division transfers raw diamonds to the processing division. The processing division is currently operating at 1 m

> West-Coast Industries is a decentralized firm. It has two production centres: Vancouver and Kamloops. Each one is evaluated based on its return on investment. Vancouver has the capacity to manufacture 100,000 units of component TR222. Vancouver’s variabl

> Aurora Manufacturing has multiple divisions that make a wide variety of products. Recently the bearing division and the wheel division got into an argument over a transfer price. The wheel division needed bearings for garden tractor wheels. It normally b

> The Pacific Company is a multidivisional company. Its managers have full responsibility for profits and complete autonomy to accept or reject transfers from other divisions. Division A produces a sub-assembly part for which there is a competitive market.

> Family Inc. has two divisions. Division A makes and sells Tshirts. Division B manufactures and sells ties. Determine minimum transfer price under different situations. Each T-shirt has a tie as one of its components. Division A needs 10,000 ties for the

> Poole Corporation has collected the following information after its first year of sales. Net sales were $1.6 million on 100,000 units, selling expenses were $240,000 (40% variable and 60% fixed), direct materials were $511,000, direct labour was $285,000

> Santana Furniture Inc. is setting a target price on its newly designed leather recliner sofa. Cost data for the sofa at a budgeted volume of 3,000 units are as follows: Calculate various amounts using absorption-cost pricing and variable-cost pricing. /

> Refer back to P9.51B, where we learned that Wamser Corporation uses cost-plus pricing methods to set the target selling price of its product E2-D2. Because some managers prefer to work with absorption-cost pricing and other managers prefer variable-cost

> Love Inc. manufactures a line of men’s colognes and aftershave lotions. The manufacturing process is basically a series of mixing operations, with the addition of certain aromatic and colouring ingredients. The finished product is packa

> Garnett Printing Corp. uses a job-order cost system. The following data summarize the operations related to the first quarter's production: Prepare entries for manufacturing costs. 1. Materials purchased on account were $192,000, and factory wages incurr

> Comput Industries is a high-tech company in the United States with several subsidiaries, including Cancomput, which is located in Canada, and Heavencomput, which is located in another country with very favourable tax laws. Both subsidiaries are considere

> Heartland Engines is a division of EverGreen Lawn Equipment Company. Heartland makes engines for lawn mowers, snow blowers, and other types of lawn and garden equipment. It sells its engines to the company’s lawn mower division and snow blower division,

> Swayze Small Engine Repair charges $42 per hour of labour. It has a material loading percentage of 40%. On a recent job to replace the engine of a riding lawn mower, Swayze worked 10.5 hours and used parts with a cost of $700. Calculate Swayze’s total bi

> Chula Vista Pump Company makes irrigation pump systems. The company is divided into several autonomous divisions that can either sell to internal units or sell externally. All divisions are located in buildings on the same piece of property. The pump div

> Sun Motors Inc. operates as a decentralized multidivisional car company. Its safety division buys most of its airbags from the airbag division. The airbag division’s incremental costs for manufacturing the airbags are $270 per unit. The airbag division i

> Cosmic Sounds is a record company with different labels. Each label has contracts with various recording artists. It also owns a recording studio called Blast Off. The record labels and the recording studio operate as separate profit centres. The studio

> The data for Pointe Claire Inc. are given in P9.55B. Assume that the transfer price has been set at $504, which is division A’s total cost plus a 20% markup. Division A’s total cost of a component is $420, which includes fixed overhead applied at the rat

> Pointe Claire Inc. operates as a decentralized multidivisional electronics company. It has two divisions. Division A transfers partially completed components to division B at a predetermined transfer price. Division A’s standard variable production cost

> Lemond Bike Repair Shop has budgeted the following time and material for 2020: Use time-and-material pricing to determine bill. // Lemond budgets 2,500 hours of repair time in 2020. It will bill a profit of $5 per labour hour along with a 15% profit m

> Bosworth Electronics Inc. is setting a selling price on a new CDL component it has just developed. The accounting department has provided the following cost estimates for this component for a budgeted volume of 100,000 units: Use cost-plus pricing to det

> During January, its first month of operations, Reyes Tool & Die accumulated the following manufacturing costs: raw materials $4,000 on account; factory labour $6,000, of which $5,200 relates to factory wages payable and $800 relates to payroll taxes paya

> Carrier Fabrication Company (CFC) manufactures and sells only one product, a special front-mounting bicycle rack for large vehicles. CFC entered into a one-time contract to produce an additional 1,000 racks for the local public transit authority at a pri

> Wamser Corporation needs to set a target price for its newly designed product, E2-D2. The following data relate to it: Use cost-plus pricing to determine various amounts. These costs are based on a budgeted volume of 1 million units produced and sold e

> The data for Kirkland Metal Corporation have been given in P9.49A. Assume that the transfer price for the component has been set at $374, which is the fabrication division’s total cost plus a 10% markup. The fabrication division’s total cost of a compone

> During the current year, Bierko Corporation expects to produce 10,000 units and has budgeted the following: net income $300,000; variable costs $1.1 million; and fixed costs $100,000. It has invested assets of $1.5 million. What was the company’s budgete

> Kirkland Metal Corporation has two divisions. The fabrication division transfers partially completed components to the assembly division at a predetermined transfer price. The fabrication division’s standard variable production cost per unit is $300. The

> The vice-president of marketing, Carol Chow, thinks that her firm can increase sales by 15,000 units for each $5-per-unit reduction in its selling price. The company's current selling price is $90 per unit and variable expenses are $60 per unit. Fixed ex

> Computech Company operates as a decentralized multidivisional electronics company. Its laptop division buys most of its monitors from the screen division. The screen division’s incremental costs for manufacturing the monitors are $280 per unit. The scree

> Weather Guard Windows Inc. is setting a target price on its newly designed tinted window. Cost data for the window at a budgeted volume of 4,000 units are as follows: Calculate various amounts using absorption-cost and variable-cost approaches. Weather

> Fast Buck Corporation needs to set a target price for its newly designed product EverRun. The following data relate to this new product: Calculate target price using absorption-cost and variable-cost approaches. The costs above are based on a budgeted

> Lemon Quench manufactures a soft drink. The company is organized into two divisions: glass and filling. The glass division makes bottles and sells them to the filling division. Each division manager receives a bonus based on the divisionâ€&#15

> The Atlantic Company is a multidivisional company. Its managers have full responsibility for profits and complete autonomy to accept or reject transfers from other divisions. Division A produces a sub-assembly part for which there is a competitive market

> A job cost sheet of Nilson Company is given below. Analyze a job cost sheet and prepare an entry for the completed job. Instructions a. Determine the source documents for direct materials, direct labour, and manufacturing overhead costs assigned to thi

> Next Level (NL) is a division of Global Electronics Inc. NL produces video game systems. These systems are sold to retailers. NL recently approached the manager of the personal computer (PC) division regarding a request to buy a special circuit board for

> Wood Inc. manufactures wood poles. Wood Inc. has two responsibility centres, harvesting and sawing, which are both evaluated as profit centres. The harvesting division does all the harvesting operations and transfers logs to the sawing division, which co

> Zapp Manufacturing Company makes various electronic products. The company is divided into autonomous divisions that can either sell to internal units or sell externally. All divisions are located in buildings on the same piece of property. The board divi

> Wordsmith is a publishing company with several different book lines. Each line has contracts with different authors. The company also owns a printing operation called Pronto Press. The book lines and the printing operation each operate as a separate prof

> Gorham Manufacturing's sales slumped badly in 2020. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 60,000 units of product: net sales $1.8 million; total costs and expens

> Schuman Corporation produces microwave units. The following per-unit cost information is available: direct materials $36; direct labour $24; variable manufacturing overhead $18; fixed manufacturing overhead $40; variable selling and administrative expens

> Ampro Inc. has two divisions. Division A makes and sells student desks. Division B manufactures and sells reading lamps. Determine minimum transfer price under different situations. Each desk has a reading lamp as one of its components. Division A needs

> St-Cyr’s Electronic Repair Shop has budgeted the following time and material for 2020: Use time-and-material pricing to determine bill. St-Cyr’s budgets 5,000 hours of repair time in 2020 and will bill a profit of $5

> Bolus Computer Parts Ltd. is setting a selling price on a new component it has just designed and developed. The following cost estimates for this new component have been provided by the accounting department for a budgeted volume of 50,000 units: Use cos

> Berg and Son Ltd. builds custom-made pleasure boats that range in price from $10,000 to $250,000. For the past 30 years, Mr. Berg Sr. has determined the selling price of each boat by estimating the cost of material, labour, and a prorated portion of over

> Lafleur Corporation needs to set a target price for its newl designed product, M14-M16. The following data relate to it: Use cost-plus pricing to determine various amounts. These costs are based on a budgeted volume of 250,000 units produced and sold e

> Millefeuille Company applies operating overhead to photocopying jobs on the basis of machine hours used. It expects overhead costs to total $290,000 for the year and estimates machine usage at 125,000 hours. For the year, the company incurs $295,000 of o

> Auto Glass Company (AGC) manufactures and sells windshield products. AGC entered into a one-time contract to produce an additional 1,000 windshields for the local public transit authority, at a price of “cost plus 20%.” The company has a plant with a cap

> Information for Caan Corporation is given in E9.22. Calculate various amounts using absorption-cost pricing and variable-cost pricing. Instructions a. Calculate the markup percentage and target selling price using absorption-cost pricing. b. Calculate t

> Firefly Corporation produces outdoor portable fireplace units. The following cost information per unit is available: direct materials $21, direct labour $26, variable manufacturing overhead $16, fixed manufacturing overhead $22, variable selling and admi

> Corn Company incurs a cost of $35 per unit, of which $20 is variable, to make a product that normally sells for $58. A foreign wholesaler offers to buy 6,000 units at $31 each. Corn will incur additional costs of $2 per unit to imprint a logo and to pay

> The information for Ahmed Corporation is given in E9.20. Calculate total cost per unit, ROI, and markup percentages. Instructions a. Using absorption-cost pricing, calculate the markup percentage. b. Using variable-cost pricing, calculate the markup per

> High Sound Corporation manufactures car stereos. It is a division of Quality Motors, which manufactures vehicles. High Sound sells car stereos to Quality Motors, as well as to other vehicle manufacturers and retail stores. The following information is av

> Travis Corporation produces high-performance rotors. It expects to produce 50,000 rotors in the coming year. It has invested $10 million to produce the rotors. The company has a required return on investment of 16%. What is its ROI per unit? Calculate RO

> The national division of Nero International Company is buying 20,000 widgets from an outside supplier at $75 per unit. Nero International’s overseas division, which is producing and selling widgets at full capacity (25,000 units), has the following sales

> The machining division has a capacity of 4,000 units. Its sales and cost data are: Determine minimum transfer price under different situations. Selling price per unit ………………………………….. $ 160 Variable manufacturing costs per unit ……………… 50 Variable selling

> The cycle division of TravelFast Company has the following cost data per unit for its most recent cycle, the Roadbuster: Determine minimum transfer price under different situations. The cycle division currently buys its body frames from an outside supp

> Alpha International Corporation has two divisions, beta and gamma. Beta produces an electronic component that sells for $75 per unit, with the following costs based on its capacity of 200,000 units: Determine minimum transfer price. Direct materials ………

> Manufacturing cost data for Pena Company, which uses a job-order cost system, are presented below. Analyze costs of manufacturing and determine missing amounts. Instructions Indicate the missing amount for each letter. Assume that in all cases manufact

> La Mode Design Inc., a high-fashion women’s dress manufacturer, is planning to market a new cocktail dress for the coming season. La Mode Design Inc. supplies retailers in Toronto, Montreal, and the Atlantic provinces. Four metres of ma

> Karl’s Klassic Kars restores classic automobiles to showroom status. Budgeted data for the current year are as follows: Use time-and-material pricing to determine bill. The company anticipated that the restorers would work a total of

> YUX Corporation sells a single product for $50. Its management estimates the following revenues and costs for the year 2020: Determine the contribution margin ratio, break-even point in dollars, margin of safety, and sales required to earn target operati

> Justin’s Custom Electronics (JCE) sells and installs complete security, computer, audio, and video systems for homes. On newly constructed homes, it provides bids using time-and-material pricing. The following budgeted cost data are available: Use time-a

> Padong Remanufacturing rebuilds spot welders for manufacturers. The following budgeted cost data for 2020 are available for Padong: Use time-and-material pricing to determine bill. The company wants a $30 profit margin per hour of labour and a 20% prof

> Caan Corporation produces industrial robots for high-precision manufacturing. The following information is given for Caan Corporation: Use cost-plus pricing to determine various amounts. The company has a desired ROI of 20%. It has invested assets of $

> Roxy’s Recording Studio rents studio time to musicians in two-hour blocks. Each session includes the use of the studio facilities, a digital recording of the performance, and a professional music producer/mixer. Anticipated annual volume is 1,000 session

> Ahmed Corporation makes a mechanical stuffed alligator. The following information is available for Ahmed Corporation’s expected annual volume of 500,000 units: Use cost-plus pricing to determine various amounts. The company has a desi

> Gruner Corporation produces snowboards. The following cost information per unit is available: direct materials $12; direct labour $8; variable manufacturing overhead $6; fixed manufacturing overhead $14; variable selling and administrative expenses $4; a

> Select Corporation makes a commercial-grade cooking griddle. The following information is available for Select Corporation’s expected annual volume of 30,000 units: Use cost-plus pricing to determine selling price. / The company uses a 40% markup perce