Question: Convad Company is one of the world’

> Refer to the information in Exercise 19-25 in answering the following requirements. There is no connection between the requirements. Required: 1. Mayfield produces 2,000 defective units at the machining operation. What is the cost to Mayfield of the def

> Torrance Manufacturing evaluates the performance of its production managers based on a variety of factors, including cost, quality, and cycle time. The following are nonfinancial measures for quality and time for 2010 and 2011 for its only product: The

> Flagstar Conference Center and Catering is a conference center and restaurant facility that hosts over 300 national and international events each year attended by 50,000 professionals. Due to increased competition and soaring customer expectations, the c

> Best Breads manufactures two types of bread, which are sold as wholesale products to various specialty retail bakeries. Each loaf of bread requires a three step process. The first step is mixing. The mixing department combines all of the necessary ingred

> Speed Print manufactures and sells 18,000 high-technology printing presses each year. The variable and fixed costs of rework and repair are as follows: Speed Print’s current presses have a quality problem that causes variations in the

> Worldwide Cell Phones (WCP) has developed a cell phone that can be used anywhere in the world (even countries like Japan that have a relatively unique cell phone system). WCP has been receiving complaints about the phone. For the past two years, WCP has

> Refer to information in Exercise 19-17 in answering this question. Dream Rider has discovered a more serious problem with the plastic core of its car seats. An accident can cause the plastic in some of the seats to crack and break, resulting in serious i

> Dream Rider produces car seats for children from newborn to two years old. The company is worried because one of its competitors has recently come under public scrutiny because of product failure. Historically, Dream Rider’s only problem with its car sea

> Costen, Inc., produces cell phone equipment. Jessica Tolmy, Costen’s president, decided to devote more resources to the improvement of product quality after learning that her company had been ranked fourth in product quality in a 2009 s

> The Morgan Company has an extensive job-costing facility that uses a variety of metals. Consider each requirement independently. Required: 1. Job 372 uses a particular metal alloy that is not used for any other job. Assume that scrap is material in amou

> White Goods assembles washing machines at its Auburn plant. In February 2012, 60 tumbler units that cost $44 each (from a new supplier who subsequently went bankrupt) were defective and had to be disposed of at zero net disposal value. White Goods was ab

> Barrett Kitchens produces a variety of items in accordance with special job orders from hospitals, plant cafeterias, and university dormitories. An order for 2,100 cases of mixed vegetables costs $9 per case: direct materials, $4; direct manufacturing la

> Refer to the information in Exercise 18-24. Suppose Chipcity determines standard costs of $200 per equivalent unit for direct materials and $75 per equivalent unit for conversion costs for both beginning work in process and work done in the current perio

> Refer to the information in Exercise 18-24. Required: Do Exercise 18-24 using the FIFO method of process costing. Data from Exercise 18-24: Chipcity is a fast-growing manufacturer of computer chips. Direct materials are added at the start of the produ

> .A student association has hired a band and a caterer for a graduation party. The band will charge a fixed fee of $1,000 for an evening of music, and the caterer will charge a fixed fee of $600 for the party setup and an additional $9 per person who atte

> Chipcity is a fast-growing manufacturer of computer chips. Direct materials are added at the start of the production process. Conversion costs are added evenly during the process. Some units of this product are spoiled as a result of defects not detectab

> Arokia Electronics manufactures cell phone models in its Walnut Creek plant. Suppose the company provides you with the following information regarding operations for September 2011: Assume the spoiled units have no disposal value. Required: 1. What is

> Jordan, Inc., is a manufacturer of vents for water heaters. The company uses a process-costing system to account for its work-in-process inventories. When Job 512 was being processed in the machining department, a piece of sheet metal was off center in t

> Appleton Company makes wooden toys in its forming department, and it uses the weighted-average method of process costing. All direct materials are added at the beginning of the process, and conversion costs are added evenly during the process. Spoiled un

> Required: For the data in Exercise 18-17, use the FIFO method to summarize total costs to account for; calculate the cost per equivalent unit for direct materials and conversion costs; and assign total costs to units completed and transferred out (includ

> Manufacturing Company uses the FIFO method of process costing instead of the weighted-average method. Required: Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule.

> Required: For the data in Exercise 18-17, summarize total costs to account for; calculate the cost per equivalent unit for direct materials and conversion costs; and assign total costs to units completed and transferred out (including normal spoilage), t

> Consider the following data for November 2012 from Gray Manufacturing Company, which makes silk pennants and uses a process-costing system. All direct materials are added at the beginning of the process, and conversion costs are added evenly during the p

> The following data, in physical units, describe a grinding process for January: Inspection occurs at the 100% completion stage. Normal spoilage is 5% of the good units passing inspection. Required: 1. Compute the normal and abnormal spoilage in units.

> UB Healthy Company manufactures three different types of vitamins: vitamin A, vitamin B, and a multivitamin. The company uses four operations to manufacture the vitamins: mixing, tableting, encapsulating, and bottling. Vitamins A and B are produced in ta

> Minnesota Office Products (MOP) produces three different paper products at its Vaasa lumber plant: Supreme, Deluxe, and Regular. Each product has its own dedicated production line at the plant. It currently uses the following three-part classification fo

> .Refer to the information in Exercise 17-27. Suppose that Asaya uses the FIFO method instead of the weighted-average method in all of its departments. The only changes to Exercise17-27 under the FIFO method are that total transferred-in costs of beginnin

> Asaya Clothing, Inc., is a manufacturer of winter clothes. It has a knitting department and a finishing department. This exercise focuses on the finishing department. Direct materials are added at the end of the process. Conversion costs are added evenly

> Refer to the information in Exercise 17-24. Suppose Bio Doc determines standard costs of $8.25 per equivalent unit for direct materials and $12.70 per equivalent unit for conversion costs for both beginning work in process and work done in the current pe

> Required: Do Exercise 17-24 using the FIFO method. Note that you first need to calculate the equivalent units of work done in the current period (for direct materials and conversion costs) to complete beginning work in process, to start and complete new

> Bio Doc Corporation is a biotech company based in Milpitas. It makes a cancer-treatment drug in a single processing department. Direct materials are added at the start of the process. Conversion costs are added evenly during the process. Bio Doc uses the

> Whole Goodness Bakery needs to determine the cost of two work orders for the month of June. Work order 215 is for 1,200 packages of dinner rolls and work order 216 is for 1,400 loaves of multigrain bread. Dinner rolls are mixed and cut into individual ro

> Required: For the data in Exercise 17-19, use the FIFO method to summarize total costs to account for, calculate cost per equivalent unit for direct materials and conversion costs, and assign total costs to units completed (and transferred out) and to un

> Refer to the information in Exercise 17-19. Suppose the assembly division at Fenton Watches, Inc., uses the FIFO method of process costing instead of the weighted-average method. Required: Compute equivalent units for direct materials and conversion cos

> Required: For the data in Exercise 17-19, summarize total costs to account for, calculate cost per equivalent unit for direct materials and conversion costs, and assign total costs to units completed (and transferred out) and to units in ending work in p

> Consider the following data for the assembly division of Fenton Watches, Inc.: The assembly division uses the weighted-average method of process costing. Required: Compute equivalent units for direct materials and conversion costs. Show physical units

> Helner Cell Phones (HCP) is developing a new touch screen smartphone to compete in the cellular phone industry. The phones will be sold at wholesale prices to cell phone companies, which will in turn sell them in retail stores to the final customer. HCP

> Describe three methods that can be used to express CVP relationships.

> Roary Chemicals has a mixing department and a refining department. Its process-costing system in the mixing department has two direct materials cost categories (chemical P and chemical Q) and one conversion costs pool. The following data pertain to the m

> Refer to requirement 2 of Exercise 17-16. Required: Prepare summary journal entries for the use of direct materials and incurrence of conversion costs. Also prepare a journal entry to transfer out the cost of goods completed. Show the postings to the Wo

> Nihon, Inc., is a manufacturer of digital cameras. It has two departments: assembly and testing. In January 2012, the company incurred $750,000 on direct materials and $798,000 on conversion costs, for a total manufacturing cost of $1,548,000. Required:

> Royston, Inc., is a large food processing company. It processes 150,000 pounds of peanuts in the peanuts department at a cost of $180,000 to yield 12,000pounds of product A, 65,000 pounds of product B, and 16,000 pounds of product C. Product A is process

> Tasty, Inc., is a producer of potato chips. A single production process at Tasty, Inc., yields potato chips as the main product and a byproduct that can also be sold as a snack. Both products are fully processed by the split off point, and there are no s

> Iowa Soy Products (ISP) buys soy beans and processes them into other soy products. Each ton of soy beans that ISP purchases for $300 can be converted for an additional $200 into 500 pounds of soy meal and 100 gallons of soy oil. A pound of soy meal can b

> .Instant Foods produces two types of microwavable products—beef-flavored ramen and shrimp-flavored ramen. The two products share common inputs such as noodle and spices. The production of ramen results in a waste product referred to as

> Sinclair Oil & Gas, a large energy conglomerate, jointly processes purchased hydrocarbons to generate three non saleable intermediate products: ICR8, ING4, and XGE3. These intermediate products are further processed separately to produce crude oil, n

> The Evrett Company operates a simple chemical process to convert a single material into three separate items, referred to here as X, Y, and Z. All three end products are separated simultaneously at a single split off point. Products X and Y are ready for

> The Wood Spirits Company produces two products—turpentine and methanol (wood alcohol)—by a joint process. Joint costs amount to $120,000 per batch of output. Each batch totals 10,000 gallons: 25% methanol and 75% turpentine. Both products are processed f

> Marcia Miller is division controller and Tom Maloney is division manager of the Ramses Shoe Company. Miller has line responsibility to Maloney, but she also has staff responsibility to the company controller. Maloney is under severe pressure to achieve t

> Quality Chicken is computing the ending inventory values for its July 31, 2012, balance sheet. Ending inventory amounts on July 31 are 15 pounds of breasts, 4 pounds of wings, 6 pounds of thighs, 5 pounds of bones, and 2 pounds of feathers. Quality Chick

> Quality Chicken grows and processes chickens. Each chicken is disassembled into five main parts. Information pertaining to production in July 2012 is as follows: Joint cost of production in July 2012 was $50. A special shipment of 40 pounds of breasts

> Jim Dandy Auto Sales uses all types of media to advertise its products (television, radio, newspaper, etc.). At the end of 2011, the company president, Jim Dandridge, decided that all advertising costs would be incurred by corporate headquarters and allo

> Yves Parfum Company blends and sells designer fragrances. It has a Men’s Fragrances Division and a Women’s Fragrances Division, each with different sales strategies, distribution channels, and product offerings. Yves i

> Sunny Gunn, a self-employed consultant near Sacramento, received an invitation to visit a prospective client in Baltimore. A few days later, she received an invitation to make a presentation to a prospective client in Chicago. She decided to combine her

> Ben and Gary are students at Berkeley College. They share an apartment that is owned by Gary. Gary is considering subscribing to an Internet provider that has the following packages available: Ben spends most of his time on the Internet (â€&

> Consider E-books again. The controller of E-books reads a widely used textbook that states that “the reciprocal method is conceptually the most defensible.” He seeks your assistance. Required: 1. Describe the key features of the reciprocal method. 2. Al

> E-books, an online book retailer, has two operating departments— corporate sales and consumer sales—and two support departments—human resources and information systems. Each sales department conducts

> Refer to the data given in Exercise 15-19. Required: 1. Allocate the two support departments’ costs to the two operating departments using the reciprocal method. Use (a) linear equations and (b) repeated iterations. 2. Compare and expl

> Brite Exteriors is a firm that provides house painting services. Robert Brite, the owner, is trying to find new ways to increase revenues. Mr. Brite performs the following actions, not in the order listed. a. Mr. Brite calls Home Depot to ask the price o

> Phoenix Partners provides management consulting services to government and corporate clients. Phoenix has two support departments—administrative services (AS) and information systems (IS)—and two operating departments&

> Chocolat Inc. decides to examine the effect of using the dual-rate method for allocating truck costs to each roundtrip. At the start of 2012, the budgeted costs were as follows: The actual results for the 45 round-trips made in 2012 were as follows:

> Chocolat Inc. is a producer of premium chocolate based in Palo Alto. The company has a separate division for each of its two products: dark chocolate and milk chocolate. Chocolat purchases ingredients from Wisconsin for its dark chocolate division and fr

> The Chicago power plant that services all manufacturing departments of Mid West Engineering has a budget for the coming year. This budget has been expressed in the following monthly terms: The expected monthly costs for operating the power plant during

> Soda-King prepared the budget for 2011 assuming a 12% market share based on total sales in the western region of the United States. The total soft drinks market was estimated to reach sales of 20 million cartons in the region. However, actual total sales

> Soda-King manufactures and sells three soft drinks: Kola, Limor, and Orlem. Budgeted and actual results for 2011 are as follows: Required: 1. Compute the total sales-volume variance, the total sales-mix variance, and the total sales-quantity variance.

> The Jinwa Corporation sells two brands of wine glasses: Plain and Chic. Jinwa provides the following information for sales in the month of June 2011: All variances are to be computed in contribution-margin terms. Required: 1. Calculate the sales-quant

> The Detroit Penguins play in the American Ice Hockey League. The Penguins play in the Downtown Arena (owned and managed by the City of Detroit), which has a capacity of 15,000 seats (5,000 lower-tier seats and 10,000 upper-tier seats). The Downtown Arena

> Figure Four is a distributor of pharmaceutical products. Its ABC system has five activities: Rick Flair, the controller of Figure Four, wants to use this ABC system to examine individual customer profitability within each distribution market. He focuse

> Instant Service (IS) repairs printers and photocopiers for five multisite companies in a tristate area. IS’s costs consist of the cost of technicians and equipment that are directly traceable to the customer site and a pool of office ov

> Garnicki Foods makes frozen dinners that it sells through grocery stores. Typical products include turkey dinners, pot roast, fried chicken, and meat loaf. The managers at Garnicki have recently introduced a line of frozen chicken pies. They take the fol

> Orsack Electronics has only two retail and two whole sale customers. Information relating to each customer for 2012 follows (in thousands): Orsack’s annual distribution-channel costs are $34 million for wholesale customers and $5 mill

> Lenzig Corporation has three divisions: pulp, paper, and fibers. Lenzig’s new controller, Ari Bardem, is reviewing the allocation of fixed corporate-overhead costs to the three divisions. He is presented with the following information f

> Rembrandt Hotel & Casino is situated on beautiful Lake Tahoe in Nevada. The complex includes a 300-room hotel, a casino, and a restaurant. As Rembrandt’s new controller, you are asked to recommend the basis to be used for allocating

> Green bold Manufacturing has four divisions named after its locations: Arizona, Colorado, Delaware, and Florida. Corporate headquarters is in Minnesota. Green bold corporate headquarters incurs $5,600,000 per period, which is an indirect cost of the divi

> Dave Meltzer vacationed at Lake Tahoe last winter. Unfortunately, he broke his ankle while skiing and spent two days at the Sierra University Hospital. Meltzer’s insurance company received a $4,800 bill for his two-day stay. One item th

> Refer to Exercise 13-26. Required: 1. Calculate the amount and cost of unused software-implementation support capacity at the beginning of 2011, based on the number of jobs actually done in 2011. 2. Suppose Westlake can add or reduce its software-implem

> Suppose that during 2011 the market for implementing sales-management software increases by 5%. Assume that any decrease in selling price and any increase in market share more than 5% are the result of strategic choices by Westlake‘s management to implem

> Refer to Exercise 13-26. Required: 1. Calculate the operating income of Westlake Corporation in 2010 and 2011. 2. Calculate the growth, price-recovery, and productivity components that explain the change in operating income from 2010 to 2011. 3. Comment

> Westlake Corporation is a small information systems consulting firm that specializes in helping companies implement standard sales-management software. The market for Westlake’s services is very competitive. To compete successfully, Wes

> Refer to Exercise 13-22. Required: 1. Calculate the amount and cost of (a) unused manufacturing capacity and (b) unused selling and customer-service capacity at the beginning of 2011 based on actual production and actual number of customers served in 20

> Conner Company makes and sells brooms and mops. It takes the following actions, not necessarily in the order given. For each action (a–e) state whether it is a planning decision or a control decision. a. Conner asks its marketing team to consider ways to

> Suppose that during 2011, the market for Stanmore’s special-purpose machines grew by 3%. All increases in market share (that is, sales increases greater than 3%) are the result of Stanmore’s strategic actions. Required: Calculate how much of the change

> Refer to Exercise 13-22. Required: 1. Calculate the operating income of Stanmore Corporation in 2010 and 2011. 2. Calculate the growth, price-recovery, and productivity components that explain the change in operating income from 2010 to 2011. 3. Commen

> Stanmore Corporation makes a special-purpose machine, D4H, used in the textile industry. Stanmore has designed the D4H machine for 2011 to be distinct from its competitors. It has been generally regarded as a superior machine. Stanmore presents the follo

> Refer to Exercise 13-18. Required: 1. Calculate the amount and cost of unused administrative capacity at the beginning of 2011, based on the actual number of customers Roberto served in 2011. 2. Suppose Roberto can only add or reduce administrative capa

> Refer to Exercise 13-19. Suppose that the market for silk-screened T-shirts grew by 10% during 2011. All increases in sales greater than 10% are the result of Roberto’s strategic actions. Required: Calculate the change in operating inc

> Refer to Exercise 13-18. Required: 1. Calculate Roberto‘s operating income in both 2010 and 2011. 2. Calculate the growth, price-recovery, and productivity components that explain the change in operating income from 2010 to 2011. 3. Co

> Roberto & Sons buys T-shirts in bulk, applies its own trendsetting silk-screen designs, and then sells the T-shirts to a number of retailers. Roberto wants to be known for its trendsetting designs, and it wants every teenager to be seen in a distinct

> An analysis of Ridgecrest’s operating-income changes between 2011 and 2012 shows the following: The industry market size for corrugated cardboard boxes did not grow in 2012, input prices did not change, and Ridgecrest reduced the pric

> Ridgecrest Corporation manufactures corrugated cardboard boxes. It competes and plans to grow by selling high-quality boxes at a low price and by delivering them to customers quickly after receiving customers’ orders. There are many oth

> Gadzooks, Inc., develops and manufactures toys that it then sells through infomercials. Currently, the company is designing a toy robot that it intends to begin manufacturing and marketing next year. Because of the rapidly changing nature of the toy indu

> Grey Brothers Consulting has issued a report recommending changes for its newest manufacturing client, Energy Motors. Energy Motors currently manufactures a single product, which is sold and distributed nationally. The report contains the following sugge

> Road Warrior manufactures and sells a model of motorcycle, XR500. In 2011, it reported the following: Required: 1. What was Road Warrior’s operating income on XR500 in 2011? What was the full cost per unit? What was the selling price?

> John Blodgett is the managing partner of a business that has just finished building a 60-room motel. Blodgett anticipates that he will rent these rooms for 15,000 nights next year (or 15,000 room-nights). All rooms are similar and will rent for the same

> Medical Instruments uses a manufacturing costing system with one direct-cost category (direct materials) and three indirect-cost categories: a. Setup, production order, and materials-handling costs that vary with the number of batches b. Manufacturing-op

> Snappy Tiles is a small distributor of marble tiles. Snappy identifies its three major activities and cost pools as ordering, receiving and storage, and shipping, and it reports the following details for 2011: For 2011, Snappy buys 250,000 marble tiles

> Calvert Associates prepares architectural drawings to conform to local structural-safety codes. Its income statement for 2012 is as follows: Following is the percentage of time spent by professional staff on various activities: Assume administrative

> The Marino Repair Shop repairs and services machine tools. A summary of its costs (by activity) for 2011 is as follows: Required: 1. Classify each cost as value-added, nonvalue-added, or in the gray area between. 2. For any cost classified in the gray

> Colorado Mountains Dairy, maker of specialty cheeses, produces a soft cheese from the milk of Holstein cows raised on a special corn-based diet. One kilogram of soft cheese, which has a contribution margin of $10, requires 4 liters of milk. A well-known

> The San Carlos Company is an electronics business with eight product lines. Income data for one of the products (XT-107) for June 2011 are as follows: Abrams, Inc., an instruments company, has a problem with its preferred supplier of XT-107. This suppl