Question: Blues Inc. manufactures jeans in the cutting

> Gerhard News collects payments from customers for newspaper subscriptions on a yearly basis (specifically, in one-year subscriptions). Each month, Gerhard must record an adjusting entry to recognize the monthly revenue that has been provided. On March 1,

> Using the information provided in BE4-11, prepare the t-accounts for Rent Expense and Prepaid Rent for Barnard and Associates as of December 31 after adjusting journal entries.

> Barnard and Associates, a law firm, paid $18,000 for 12 months’ rent in advance on October 1 of the current year. The company’s fiscal year-end is December 31. Prepare the journal entries for the rent payment on October 1 and the necessary adjusting jour

> Over the course of 2018, the first year of operations, Medical Supplies, Inc. had the following income transactions: Sales Revenue of $4,340,000; Cost of Goods Sold of $1,936,000; Wage Expense of $876,000; Insurance Expense of $324,000; Administrative Ex

> At the beginning of the year, Buxton Builders purchased raw materials in the amount of $15,000 to produce goods to sell. Buxton paid cash. What is the effect of this transaction on the accounting equation?

> Explain why research is important in accounting. Discuss the research process.

> Referencing Appendix, A, determine the topics, subtopics and sections of the Codification for the following balance sheet events.

> Put the four levels of the IFRS literature hierarchy in correct order (use 1,  2, 3, 4):

> Identify the level of the literature hierarchy for U.S. GAAP to which each item belongs.

> Put the three levels of the literature hierarchy for U.S. GAAP in correct order (use 1, 2, 3):

> What is the revenue recognition principle and when is revenue considered recognized?

> Can U.S. companies listed on U.S. stock exchanges use IFRS?

> Atlas Furniture Company manufactures designer home furniture. Atlas uses a standard cost system. The direct labor, direct materials, and factory overhead standards for an unfinished dining room table are as follows: a. Determine the standard cost per di

> Thomas Textiles Corporation began November with a budget for 60,000 hours of production in the Weaving Department. The department has a full capacity of 75,000 hours under normal business conditions. The budgeted overhead at the planned volumes at the be

> Mexicali On the Go Inc. owns and operates food trucks (mobile kitchens) throughout the west coast. The company’s employees have varying wage levels depending on their experience and length of time with the company. Employees work 8-hour shifts and are as

> Ada Clothes Company produced 40,000 units during April. The Cutting Department used 12,800 direct labor hours at an actual rate of $16.50 per hour. The Sewing Department used 19,600 direct labor hours at an actual rate of $19.25 per hour. Assume there we

> Crazy Delicious Inc. produces chocolate bars. The primary materials used in producing chocolate bars are cocoa, sugar, and milk. The standard costs for a batch of chocolate (5,000 bars) are as follows: Determine the standard direct materials cost per ba

> Tobin’s Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12" and 16" frozen pizzas for November: There are three direct materials used in producing the two types of pizza. The q

> Based on the data in Exercise 7 and assuming that the average compensation per hour for staff is $40 and for partners is $175, prepare a professional labor cost budget for each department for Lundquist & Fretwell, CPAs, for the year ending May 31, 20

> Lundquist & Fretwell, CPAs, offer three types of services to clients: auditing, tax, and small business accounting. Based on experience and projected growth, the following billable hours have been estimated for the year ending May 31, 20Y8: The aver

> Healthy Measures Inc. produces a Bath and Gym version of its popular electronic scale. The Anticipated unit sales for the scales by sales region are as follows: The finished goods inventory estimated for March 1, for the Bath and Gym scale models is 11,

> Steelcase Inc. (SCS) is one of the largest manufacturers of office furniture in the United States. In Grand Rapids, Michigan, it assembles filing cabinets in an Assembly Department. Assume the following information for the Assembly Department: Direct lab

> How do the manufacturing costs incurred during a period differ from the cost of goods manufactured for a period?

> The production supervisor of the Machining Department for Hagerstown Company agreed to the following monthly static budget for the upcoming year: The actual amount spent and the actual units produced in the first three months in the Machining Department

> Digital Solutions Inc. uses flexible budgets that are based on the following data: Sales commissions …………………………………………………………………………….. 8% of sales Advertising expense ………………………………………………………………………….. 15% of sales Miscellaneous administrative expense ……………..

> Pet Supplies Inc., a pet wholesale supplier, was organized on January 1. Projected sales for each of the first three months of operations are as follows: January ………. $300,000 February ……….. 500,000 March ……………. 750,000 All sales are on account. Seventy-

> The following data were adapted from a recent income statement of Caterpillar Inc. (CAT) for the year ended December 31: Assume that $8,500 million of cost of goods sold and $4,000 million of selling, administrative, and other expenses were fixed costs.

> The following data were adapted from a recent income statement of The Procter & Gamble Company (PG): Assume that the variable amount of each category of operating costs is as follows: a. Based on the data given, prepare a variable costing income st

> On October 31, the end of the first month of operations, Maryville Equipment Company prepared the following income statement, based on the variable costing concept: Prepare an income statement under absorption costing.

> On April 30, the end of the first month of operations, Joplin Company prepared the following income statement, based on the absorption costing concept: If the fixed manufacturing costs were $450,000 and the fixed selling and administrative expenses were

> Jake’s Cabins is a small motel chain with locations near the national parks of Utah, Wyoming, and Montana. The chain has a total of 500 guest rooms. The following operating data are available for June: a. Determine the guest nights for

> The cost of direct materials transferred into the Rolling Department of Kraus Company is $3,000,000. The conversion cost for the period in the Rolling Department is $462,600. The total equivalent units for direct materials and conversion are 4,000 tons a

> The Rolling Department of Kraus Steel Company had 200 tons in beginning work in process inventory (60% complete) on October 1. During October, 3,900 tons were completed. The ending work in process inventory on October 31 was 300 tons (25% complete). What

> Under what circumstances might the activity-based costing method provide more accurate product costs than the multiple production department factory overhead rate method?

> The Rolling Department of Kraus Steel Company had 200 tons in beginning work in process inventory (60% complete) on October 1. During October, 3,900 tons were completed. The ending work in process inventory on October 31 was 300 tons (25% complete). What

> Kraus Steel Company has two departments, Casting and Rolling. In the Rolling Department, ingots from the Casting Department are rolled into steel sheet. The Rolling Department received 4,000 tons from the Casting Department in October. During October, th

> Charlie’s Wood Works produces wood products (e.g., cabinets, tables, picture frames, and so on). Production departments include Cutting and Assembly. The Janitorial and Security departments support the Cutting and Assembly departments. The Assembly Depar

> A company reports the following: Cost of goods sold ………………… $500,000 Average inventory …………………….. 62,500 Determine (a) The inventory turnover and (b) The number of days’ sales in inventory. Round to one decimal place.

> A company reports the following: Net income ……………………………………………. $562,000 Preferred dividends …………………………………. $50,000 Shares of common stock outstanding …………. 80,000 Market price per share of common stock …………. $32 a. Determine the company’s earnings per sh

> A company reports the following: Net income …………………………………………….. $1,225,000 Preferred dividends ……………………………………….. 47,800 Average stockholders’ equity ……………………… 8,750,000 Average common stockholders’ equity ……….. 5,400,000 Determine (a) The return on stock

> Dillin Inc. reported the following on the company’s statement of cash flows in 20Y2 and 20Y1: Eighty percent of the net cash flow used for investing activities was used for the purchase of property, plant, and equipment. a. Determine D

> Lonnie’s Shipping Co. is considering switching to an all-electric fleet to minimize emissions. Lonnie wants to gradually implement this change over the next 10 years. The company currently has a fleet of 100 trucks, half of which are electric-powered. Up

> Gary’s Gumbo is a locally owned restaurant in Houston, Texas, with eight locations. The owner recently developed a new recipe for the restaurant’s signature gumbo dish. The owner decided to try out the dish in four of

> Moses Moonrocks Inc. has developed a balanced scorecard with a measure map that suggests that the number of erroneous shipments has a direct effect on operating profit. The company estimates that every shipment error leads to a reduction of revenue by $3

> What would happen to net income if the activities noted in Discussion Question 6 were allocated to products for financial statement reporting and the inventory increased? Activities noted in Discussion Question 6: Shipping, selling, marketing, sales ord

> Bluetiful Inc. has the following strategic objectives on its balanced scorecard but is unsure how to measure them: • Increase profits • Obtain new customers • Improve production efficiency • Recruit top candidates State which performance perspective each

> 72 Inc. has developed a balanced scorecard with the following performance metrics: • Total sales • Employee turnover • Market share • Number of shipping errors • Median training hours per employee • Number of new customers Relative to the metric “custome

> A quality control activity analysis indicated the following four activity costs of a hotel: Inspecting cleanliness of rooms ………………………… $175,000 Processing lost customer reservations ………………….. 40,000 Rework incorrectly prepared room service meal …… 20,000

> The annual budgeted conversion costs for a lean cell are $180,000 for 1,000 production hours. Each unit produced by the cell requires 20 minutes of cell process time. During the month, 600 units are manufactured in the cell. The estimated materials costs

> A project is estimated to cost $463,565 and provide annual net cash flows of $115,000 for nine years. Determine the internal rate of return for this project, using the present value of an annuity table appearing in Exhibit 5 of this chapter. Table appea

> A project has estimated annual net cash flows of $80,000 for seven years and is estimated to cost $325,000. Assume a minimum acceptable rate of return of 6%. Using the present value of an annuity table appearing in Exhibit 5 of this chapter, determine (a

> A project has estimated annual net cash flows of $42,500. It is estimated to cost $374,000. Determine the cash payback period. Round to one decimal place.

> Determine the average rate of return for a project that is estimated to yield total income of $936,000 over eight years, has a cost of $1,200,000, and has a $100,000 residual value.

> Product J19 is produced for $11 per gallon. Product J19 can be sold without additional processing for $18 per gallon, or processed further into Product R33 at an additional cost of $7 per gallon. Product R33 can be sold for $24 per gallon. Prepare a diff

> Shipping, selling, marketing, sales order processing, return processing, and advertising activities can be related to products by using activity-based costing. Would allocating these activities to products for financial statement reporting be acceptable

> A company manufactures various-sized plastic bottles for its medicinal product. The manufacturing cost for small bottles is $55 per unit (100 bottles), including fixed costs of $12 per unit. A proposal is offered to purchase small bottles from an outside

> Product Tango has revenue of $1,150,000, variable cost of goods sold of $850,000, variable selling expenses of $275,000, and fixed costs of $125,000, creating an operating loss of $(100,000). Prepare a differential analysis as of February 13 to determine

> Plymouth Company owns equipment with a cost of $600,000 and accumulated depreciation of $375,000 that can be sold for $300,000, less a 4% sales commission. Alternatively, Plymouth Company can lease the equipment for four years for a total of $320,000, at

> At the beginning of the period, the Fabricating Department budgeted direct labor of $72,000 and equipment depreciation of $18,500 for 2,400 hours of production. The department actually completed 2,350 hours of production. Determine the budget for the dep

> Jorgensen Company has sales of $380,000,000, and the break-even point in sales dollars is $323,000,000. Determine Jorgensen Company’s margin of safety as a percent of current sales.

> Haywood Co. reports the following data: Sales …………………………………. $ 6,160,000 Variable costs ……………………. (4,620,000) Contribution margin ………….. $ 1,540,000 Fixed costs ………………………….. (440,000) Operating income………………. $ 1,100,000 Determine Haywood Co.’s operating

> Conley Company has fixed costs of $17,802,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company’s two products follow: The sales mix for products Yankee and Zoro is 80% and 20%, respectiv

> Beard Company sells a product for $15 per unit. The variable cost is $10 per unit, and fixed costs are $1,750,000. Determine (a) The break-even point in sales units and (b) The sales units required for the company to achieve a target profit of $400,000.

> Freese Inc. sells a product for $650 per unit. The variable cost is $455 per unit, while fixed costs are $4,290,000. Determine (a) The break-even point in sales units and (b) The break-even point if the selling price were increased to $655 per unit.

> Waite Company sells 250,000 units at $120 per unit. Variable costs are $78 per unit, and fixed costs are $8,175,000. Determine (a) The contribution margin ratio, (b) The unit contribution margin, and (c) Operating income.

> How does activity-based costing differ from the multiple production department factory overhead rate method?

> The manufacturing costs of Rosenthal Industries for the first three months of the year follow: Using the high-low method, determine (a) The variable cost per unit and (b) The total fixed cost.

> Man O’Fort Inc. produces two different styles of door handles, standard and curved. The door handles go through a joint production molding process costing $29,000 per batch and producing 2,000 standard door handles and 1,000 curved door handles at the sp

> Gary’s Grooves Co. produces two types of carving knives, one with a handle made of a polymer that looks like walnut wood and another with a handle made with a polymer that looks like red oak. The knives are made through a joint production molding process

> Blake’s Blacksmith Co. produces two types of shotguns, a 12-gauge and 20-gauge. The shotguns are made through a joint production process that ultimately produces 30 12-gauge shotguns and 20 20-gauge shotguns and costs a total of $4,000 per batch. After t

> Brewster Toymakers Inc. produces toys for children. The toys are produced in the Molding and Assembly departments. The Janitorial and Security departments support the production of the toys. Costs from the Janitorial Department are allocated based on squ

> Bucknum Boys, Inc., produces hunting gear for buck hunting. The company’s main production departments are Molding and Finishing. Production of the hunting gear cannot be accomplished without the supporting tasks of Materials Management and meals for prod

> The costs per equivalent unit of direct materials and conversion in the Rolling Department of Kraus Steel Company are $750 and $120, respectively. The equivalent units to be assigned costs are as follows: The beginning work in process inventory on Octob

> In October, the cost of materials transferred into the Rolling Department from the Casting Department of Kraus Steel Company is $3,000,000. The conversion cost for the period in the Rolling Department is $462,600 ($275,000 factory overhead applied and $1

> How is sustainability distinguishable from corporate social responsibility?

> Why is the common measures bias especially prevalent in companies that use scorecard cascading?

> Under what two conditions would the multiple production department factory overhead rate method provide more accurate product costs than the single plantwide factory overhead rate method?

> In practice, items such as wood screws and glue used in the production of school desks and chairs would most likely be classified as: a. period costs. b. direct labor. c. factory overhead. d. direct materials.

> A firm has $100,000 in direct materials costs, $50,000 in direct labor costs, and $80,000 in overhead. Which of the following is true? a. Prime costs are $150,000; conversion costs are $180,000. b. Prime costs are $130,000; conversion costs are $150,000.

> A review of Plunkett Corporation’s accounting records revealed the following selected information for the previous year: Direct materials used ……………….... $ 56,000 Direct labor …………………………………. 179,100 Manufacturing overhead ………….….. 421,000 Selling expense

> Which of the following items would not be considered a manufacturing cost? a. Cream for an ice cream maker. b. Sales commissions for a car manufacturer. c. Plant property taxes for an ice cream maker. d. Tires for an automobile manufacturer.

> A sign of the successful implementation of a balanced scorecard is the presence of cause and effect relationships. An example of this success for a hotel is meeting the target of: a. Decreasing a customer’s check-in time, which causes an increase in the

> Which of the following statements best describes the performance elements found on most balanced scorecards? a. The balanced scorecard contains neither financial nor nonfinancial performance measures. b. The balance scorecard contains nonfinancial but no

> The balanced scorecard provides an action plan for achieving competitive success by focusing management attention on critical success factors. Which of the following is not one of the competitive success factors commonly found on the balanced scorecard?

> Which of the following statements regarding the balanced scorecard is not correct? a. It seeks to address the problems associated with traditional financial measures used to assess performance. b. The notion of value chain analysis plays a major role in

> External failure costs include all of the following costs except those related to: a. lost sales and lost customers. b. warranty obligations. c. product liability suits. d. product field testing.

> In measuring the cost of quality, which one of the following is considered an appraisal cost? a. Rework cost b. Product testing cost c. Warranty claims cost d. Equipment maintenance cost

> What are some of the dangerous tendencies of people who fall prey to the bias of motivated reasoning?

> When measuring the cost of quality, the cost of inspecting incoming raw materials is a(n): a. prevention cost. b. appraisal cost. c. internal failure cost. d. external failure cost.

> Leese Inc. has the following quality financial data for its most recent fiscal year. Rework costs ……………………………. $110,000 Warranty repair costs …………….….. 280,000 Product line inspection ………..….….. 95,000 Design engineering …………………… 300,000 Supplier evaluat

> Foster Manufacturing is analyzing a capital investment project that is forecast to produce the following cash flows and net income: The payback period of this project will be: a. 2.5 years. b. 2.6 years. c. 3.0 years. d. 3.3 years.

> Allstar Company invests in a project with expected cash inflows of $9,000 per year for four years. All cash flows occur at year-end. The required return on investment is 9%. If the project generates a net present value (NPV) of $3,000, what is the amount

> Staten Corporation is considering two mutually exclusive projects. Both require an initial outlay of $150,000 and will operate for five years. The cash flows associated with these projects are as follows: Staten’s required rate of retu

> Foster Manufacturing is analyzing a capital investment project that is forecasted to produce the following cash flows and net income: Using the present value tables provided in Appendix A, the internal rate of return (rounded to the nearest whole percen

> Oakes Inc. manufactured 40,000 gallons of Mononate and 60,000 gallons of Beracyl in a joint production process, incurring $250,000 of joint costs. Oakes allocates joint costs based on the physical volume of each product produced. Mononate and Beracyl can

> Aril Industries is a multiproduct company that currently manufactures 30,000 units of Part 730 each month for use in production. The facilities now being used to produce Part 730 have fixed monthly overhead costs of $150,000 and a theoretical capacity to

> Johnson Company manufactures a variety of shoes and has received a special one-time-only order directly from a wholesaler. Johnson has sufficient idle capacity to accept the special order to manufacture 15,000 pairs of sneakers at a price of $7.50 per pa

> In differential cost analysis, which one of the following best fits the description of a sunk cost? a. Direct materials required in the manufacture of a table b. Purchasing department costs incurred in acquiring material c. Cost of the forklift driver to

> What is the purpose of scorecard cascading?

> Morrison’s Plastics Division, a profit center, sells its products to external customers as well as to other internal profit centers. Which one of the following circumstances would justify the Plastics Division selling a product internally to another prof