Chander, Inc., manufactures cloth shopping bags. The controller is preparing a budget for the coming year and asks for your assistance. The following costs and other data apply to bag production:
Direct materials per bag
1.0 yard cotton at $3 per yard
0.2 yards canvas finish at $10 per yard
Direct labor per bag
0.5 hour at $16 per hour
Overhead per bag
Indirect labor . . . . . . . . . . . . . . . . . . . . . . $0.50
Indirect materials . . . . . . . . . . . . . . . . . . . . 0.15
Power. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.30
Equipment costs . . . . . . . . . . . . . . . . . . . . . 1.25
Building occupancy . . . . . . . . . . . . . . . . . . 0.80
Total overhead per unit . . . . . . . . . . . . . $3.00
You learn that equipment costs and building occupancy are fixed and are based on a normal production of 300,000 units per year. Other overhead costs are variable. Plant capacity is sufficient to produce 375,000 units per year.
Labor costs per hour are not expected to change during the year. However, the cotton supplier has informed Chander that it will impose a 20 percent price increase at the start of the coming budget period. No other costs are expected to change.
During the coming budget period, Chander expects to sell 270,000 bags. Finished goods inventory is targeted to increase from the current balance of 60,000 units to 105,000 units to prepare for an expected sales increase the year after next. Production will occur evenly throughout the year. Inventory levels for cotton and canvas are expected to remain unchanged throughout the year. There is no work-in-process inventory.
Required
Prepare a production budget and estimate the materials, labor, and overhead costs for the coming year.
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> B. Kelso established Computer Wizards during November of this year. The accountant prepared the following chart of accounts:The following transactions occurred during the month:a. Kelso deposited $45,000 in a bank account in the name of the business.b. P
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> On June 1 of this year, J. Larkin, Optometrist, established the Larkin Eye Clinic. The clinic’s account names are presented below. Transactions completed during the month follow.a. Larkin deposited $25,000 in a bank account in the name
> Houston Corporation manufactures a wide variety of chemical compounds and liquids for industrial uses. The standard mix for producing a single batch of 1,000 liters of Rust-Off is as follows:There is a 20 percent loss in liquid volume during processing d
> Midwest Entertainment has four operating divisions: Bus Charters, Lodging, Concerts, and Ticket Services. Each division is a separate segment for financial reporting purposes. Revenues and costs related to outside transactions were as follows for the pas
> Oscar Clemente is the manager of Forbes Division of Pitt, Inc., a manufacturer of biotech products. Forbes Division, which has $4 million in assets, manufactures a special testing device. At the beginning of the current year, Forbes invested $5 million i
> Peninsula Candy Company makes three types of candy bars: Chewy, Chunky, and Choco-Lite (Lite). Sales volume for the annual budget is determined by estimating the total market volume for candy bars and then applying the company’s prior y
> Pacific Hotels operates a centralized call center for the reservation needs of its hotels. Costs associated with use of the center are charged to the hotel group (luxury, resort, standard, and budget) based on the length of time of calls made (time usage
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> The following information is provided concerning the operations of Tolstoy Corporation for the current period:There are no inventories.RequiredPrepare a flexible budget for Tolstoy Corporation.
> Find the values of the missing items (a) through (q). Assume that the actual sales volume equals actual production volume. (There are no inventory level changes.)
> Doug’s Diner is planning to expand operations and is concerned that its reporting system might need improvement. The master budget income statement for the Downtown Doug’s, which contains a delicatessen and restaurant
> A new accounting intern at Gibson Corporation lost the only copy of this period’s masterbudget. The CFO wants to evaluate performance for this period but needs the master budgetto do so. Actual results for the period follow:Sales volume. . . . . . . . .
> Steamco Corporation is reviewing its operations to see what additional energy-saving projects it might adopt. The company’s manufacturing plant generates its own electricity using a process capturing steam from its production processes.
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> Model, Inc., produces model automobiles made from metal. It operates two production departments, Molding and Painting, and has three service departments, Administration, Accounting, and Maintenance. The accumulated costs in the three service departments
> Allcott Computer Services (ACS) provides computer training and repair services for schools and local businesses. Sales for year 1 totaled $1,350,000. Information regarding resources for the year includes the following:In addition, ACS spent $42,000 on 50
> Leidenheimer Corporation manufactures small airplane propellers. Sales for year 2 totaled $1,700,000. Information regarding resources for the month follows:In addition, Leidenheimer spent $50,000 on 50 engineering changes with a cost-driver rate of $1,00
> Refer to Exercise 10-38.Exercise 10-38Gunnison Supply provides the following information about resources:In addition, sales for the period totaled $150,000.Requireda. Prepare a traditional income statement like the one in Exhibit 10.10.b. Prepare an acti
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> A tornado struck the only manufacturing plant of Toledo Farm Implements (TFI) on June 1. All work-in-process inventory was destroyed, but a few records were salvaged from the wreckage and from the company’s headquarters. If acceptable documentation is pr
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> Amazon Beverages produces and bottles a line of soft drinks using exotic fruits from Latin America and Asia. The manufacturing process entails mixing and adding juices and coloring ingredients at the bottling plant, which is a part of Mixing Division. Th
> Panther Corporation appeared to be experiencing a good year. Sales in the first quarter were one-third ahead of last year, and the sales department predicted that this rate would continue throughout the entire year. The controller asked Janet Nomura, a s
> MTI makes three types of lawn tractors: M3100, M4100, and M6100. In the past, it allocated overhead to products using machine-hours. Last year, the company produced 10,000 units of M3100, 17,500 units of M4100, and 10,000 units of M6100 and had the follo
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> Pharmaceutical firms, oil and gas companies, and other ventures inevitably incur costs on unsuccessful investments in new projects (e.g., new drugs or new wells). For oil and gas firms, a debate continues over whether those costs should be written off as
> House Station, Inc., is a nationwide hardware and furnishings chain. The manager of the House Station Store in Portland is evaluated using ROI. House Station headquarters requires an ROI of 10 percent of assets. For the coming year, the manager estimates
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> Kitchen Supply, Inc. (KSI), manufactures three types of flatware: institutional, standard, and silver. It applies all indirect costs according to a predetermined rate based on direct labor-hours. A consultant recently suggested that the company switch to
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> Balance each of the following half-reactions. a. I-(aq) / I2(s) b. O2( g) / O2-(s) c. P4(s) / P3-(s) d. Cl2( g) / Cl-(aq)
> In each of the following reactions, identify which element is oxidized and which is reduced by assigning oxidation states. a. 2B2O3(s) + 6Cl2(g) / 4BCl3(l) + 3O2(g) b. GeH4(g) + O2(g) / Ge(s) + 2H2O(g) c. C2H4(g) + Cl2(g) / C2H4Cl2(l) d. O2(g) + 2F2(g)
> In each of the following reactions, identify which element is oxidized and which is reduced by assigning oxidation states. a. C(s) + O2( g) / CO2( g) b. 2CO( g) + O2( g) / 2CO2( g) c. CH4( g) + 2O2( g) / CO2( g) + 2H2O( g) d. C2
> Assign oxidation states to all of the atoms in each of the following: a. BiO+ b. PO43- c. NO2- d. Hg22+
> Assign oxidation states to all of the atoms in each of the following: a. CrCl3 b. K2CrO4 c. K2Cr2O7 d. Cr(C2H3O2)2
> Assign oxidation states to all of the atoms in each of the following: a. MnO2 b. BaCrO4 c. H2SO3 d. Ca3(PO4)2
> Assign oxidation states to all of the atoms in each of the following: a. PBr3 b. C3H8 c. KMnO4 d. CH3COOH
> Assign oxidation states to all of the atoms in each of the following: a. NH3 b. CO c. CO2 d. NF3
> For each of the following oxidation–reduction reactions of metals with nonmetals, identify which element is oxidized and which is reduced. a. 3Zn(s) + N2( g) Zn3N2(s) b. Co(s) + S(s) CoS(s) c. 4K(s) + O2( g) 2K2O(s) d.
> For each of the following oxidation–reduction reactions of metals with nonmetals, identify which element is oxidized and which is reduced. a. 4Na(s) + O2( g) 2Na2O(s) b. Fe(s) + H2SO4(aq) FeSO4(aq) + H2( g) c. 2Al2O3(s)
> Explain why, although it is not an ionic compound, we still assign oxygen an oxidation state of -2 in water, H2O. Give an example of a compound in which oxygen is not in the -2 oxidation state.
> Balance each of the following oxidation–reduction reactions, which take place in acidic solution. a. MnO4-(aq) + H2O2(aq) / Mn2+(aq) + O2( g) b. BrO3-(aq) + Cu+(aq) / Br-(aq) + Cu2+(aq) c. HNO2(aq) + I-(aq) / NO( g) + I2(aq)
> Balance each of the following oxidation–reduction reactions by inspection. a. C3H8( g) + O2( g) / CO2( g) + H2O( g) b. CO( g) + H2( g) / CH3OH( l ) c. SnO2(s) + C(s) / Sn(s) + CO( g) d. C2H5OH( l ) + O2( g) / CO2( g) + H2O( g)
> Carbon compounds containing double bonds (such compounds are called alkenes) react readily with many other reagents. In each of the following reactions, identify which atoms are oxidized and which are reduced, and specify the oxidizing and reducing agent
> In each of the following reactions, identify which species is the oxidizing agent. a. 2Al(s) + 6HCl(aq) ( 2AlCl3(aq) + 3H2(g) b. Cu(s) + H2SO4(aq) ( CuSO4(aq) + H2(g)
> In each of the following reactions, identify which element is oxidized and which is reduced. a. Zn(s) + 2HCl(aq) ZnCl2(aq) + H2( g) b. 2CuI(s) CuI2(s) + Cu(s) c. 6Fe2+(aq) + Cr2O72-(aq) + 14H+(aq) 6Fe3+
> For each of the following unbalanced oxidation–reduction chemical equations, balance the equation by inspection, and identify which species is the reducing agent. a. Fe(s) + O2(g) / Fe2O3(s) b. Al(s) + Cl2(g) / AlCl3(s) c. Mg(s) + P4(s)
> Although aluminum is a reactive metal, pure aluminum ordinarily does not corrode severely in air because a protective layer of builds up on the metal’s surface.
> Corrosion of a metal represents its by species present in the atmosphere.
> The common acid dry cell battery typically contains an inner casing made of metal, which functions as the anode.
> The process of involves forcing a current through a cell to produce a chemical change that would not otherwise occur. How is this process different than what occurs in a galvanic cell?
> Why must the sum of all the oxidation states of the atoms in a neutral molecule be zero?
> The “pressure” on electrons to flow from one electrode to the other in a battery is called the of the battery.
> In a(n) cell, electrons flow through a wire from the reducing agent to the oxidizing agent.
> What systematic ending is used to show that a molecule is a carboxylic acid? Give an example.
> Which process (oxidation/reduction) takes place at the anode of a galvanic cell?
> An electrochemical cell that produces a current from an oxidation–reduction reaction is often called a(n) cell.
> To obtain useful electrical energy from an oxidation–reduction process, we must set up the reaction in such a way that the oxidation half-reaction and the reduction half-reaction are physically one another.
> When we balance an oxidation–reduction equation, the number of electrons lost by the reducing agent must the number of electrons gained by the oxidizing agent.
> To function as a good reducing agent, a species must electrons easily.
> An oxidizing agent causes the (oxidation/reduction) of another species, and the oxidizing agent itself is (oxidized/reduced).
> What structural feature distinguishes aldehydes from ketones?
> let’s us keep track of electrons in oxidation– reduction reactions by assigning charges to the various atoms in a compound.
> Why is methanol sometimes called wood alcohol? Describe the modern synthesis of methanol. What are some uses of methanol?
> Although nuclear processes offer the potential for an abundant source of energy, no nuclear power plants have been built in the United States for some time. In addition to the fear of a malfunction in such a plant (as happened at the Three Mile Island nu
> How do the chemical properties of radioactive nuclei (as opposed to the nuclear decay they undergo) influence the degree of damage they do to an organism?
> Explain why, although gamma rays are far more penetrating than alpha particles, the latter are actually more likely to cause damage to an organism. Which radiation is more effective at causing ionization of biomolecules?
> Write the equation for the synthesis of ethanol from ethylene. What are some commercial uses of ethanol made by this process?
> The “Chemistry in Focus” segment Water-Powered Fireplace discusses a fireplace that uses the electrolysis of water to produce hydrogen gas. Write the balanced chemical equation for the electrolysis of water. Which element in water is oxidized? Which is r
> Although the energy transferred per event when a living creature is exposed to radiation is small, why is such exposure dangerous?
> What are some important uses of electrolysis?
> What type of “fuel” could be used in a nuclear fusion reactor, and why is this desirable?
> If a benzene ring contains several substituents, how are the relative locations of the substituents numbered in the systematic name given to the molecule?
