Question: For 2017, Sale Company reported beginning total

> Ranger Company purchases 17,280 units of Product Beta each year in lots of 864 units per order. The cost of placing one order is $10, and the cost of carrying one unit of product in inventory for a year is $6. Required: 1. What is the EOQ for Beta? 2. H

> Knit line Inc. produces high-end sweaters and jackets in a single factory. The following information was provided for the coming year. A sales commission of 5% of sales is paid for each of the two product lines. Direct fixed selling and administrative

> Plata Company produces two products: a mostly handcrafted soft leather briefcase sold under the label Maletin Elegant and a leather briefcase produced largely through automation and sold under the label Maletin Fina. The two products use two overhead act

> In the first quarter of operations, a manufacturing cell produced 80,000 stereo speakers, using 20,000 production hours. In the second quarter, the cycle time was 10 minutes per unit with the same number of production hours as were used in the first quar

> The following six situations at Diviney Manufacturing Inc. are independent. a. A manual insertion process takes 30 minutes and 8 pounds of material to produce a product. Automating the insertion process requires 15 minutes of machine time and 7.5 pounds

> The Receiving Department has three activities: unloading, counting goods, and inspecting. Unloading uses a forklift that is leased for $15,000 per year. The forklift is used only for unloading. The fuel for the forklift is $3,600 per year. Other operatin

> The Sabroso Chocolate Company uses activity-based costing (ABC). The controller identified two activities and their budgeted costs: Setting up equipment …………â€&br

> Patten Company uses activity-based costing (ABC). Patten manufactures toy cars using two activities: plastic injection molding and decal application. Patten’s 2013 total budgeted overhead costs for these two activities are $675,000 (80% for injection mol

> Bienestar Company produces two types of get-well cards: scented and regular. Drivers for the four activities are as follows: The following activity data have been collected: Inspecting products ……â€&b

> Water fun Technology produces engines for recreational boats. Because of competitive pressures, the company was making an effort to reduce costs. As part of this effort, management implemented an activity-based management system and began focusing its at

> Hammer Company produces a variety of electronic equipment. One of its plants produces two laser printers: the deluxe and the regular. At the beginning of the year, the following data were prepared for this plant: In addition, the following information

> A hospital is in the process of implementing an ABC system. A pilot study is being done to assess the effects of the costing changes on specific products. Of particular interest is the cost of caring for patients who receive in-patient recovery treatment

> Loren Inc. manufactures products that pass through two or more processes. During April, equivalent units were computed using the FIFO method: Units started and completed ………………………………………… 4,600 Units in BWIP 3 Fraction to Complete (60%) …………………… 840 Unit

> Drysdale Dairy produces a variety of dairy products. In Department 12, cream (transferred in from Department 6) and other materials (sugar and flavorings) are mixed at the beginning of the process and churned to make ice cream. The following data are for

> Loran Inc. had the following equivalent units schedule and cost for its fabrication department during September: Required: 1. Calculate the unit cost for materials, for conversion, and in total for the fabrication department for September. 2. Calculate

> Byford Inc. produces a product that passes through two processes. During November, equivalent units were calculated using the weighted average method: Units completed ………………………………………………………………………………. 196,000 Add: Units in EWIP 3 Fraction complete (60,000

> Stevenson Company is divided into two operating divisions: Battery and Small Motors. The company allocates power and general factory costs to each operating division using the direct method. Power costs are allocated on the basis of the number of machine

> Stevenson Company is divided into two operating divisions: Battery and Small Motors. The company allocates power and general factory costs to each operating division using the direct method. Power costs are allocated on the basis of the number of machine

> Yurman Inc. uses a job-order costing system. During the month of May, the following transactions occurred: a. Purchased materials on account for $29,670. b. Requisitioned materials totaling $24,500 for use in production. Of the total, $9,200 was for Job

> Ensign Landscape Design designs landscape plans and plants the material for clients. On April 1, there were three jobs in process, Jobs 39, 40, and 41. During April, two more jobs were started, Jobs 42 and 43. By April 30, Jobs 40, 41, and 43 were comple

> Roseler Company uses a normal job-order costing system. The company has two departments through which most jobs pass. Overhead is applied using a plant wide overhead rate of $10 per direct labor hour. During the year, several jobs were completed. Data pe

> Consider the following independent jobs. Overhead is applied in Department 1 at the rate of $6 per direct labor hour. Overhead is applied in Department 2 at the rate of $8 per machine hour. Direct labor wages average $10 per hour in each department. Re

> In December, Davis Company had the following cost flows: Required: 1. Prepare the journal entries to transfer costs from (a) Molding to Grinding, (b) Grinding to Finishing, and (c) Finishing to Finished Goods. 2. CONCEPTUAL CONNECTION Explain how the j

> Derry Company uses job-order costing. At the end of the month, the following information was gathered: The beginning balance of Finished Goods was $300, consisting of Job 300 which was not sold by the end of the month. Required: 1. Calculate the balan

> Gorman Company builds internal conveyor equipment to client specifications. On October 1, Job 877 was in process with a cost of $18,640 to date. During October, Jobs 878, 879, and 880 were started. Data on costs added during October for all jobs are as

> Jagjit Company designs and builds retaining walls for individual customers. On August 1, there were two jobs in process: Job 93 with a beginning balance of $8,750, and Job 94 with a beginning balance of $7,300. Jagjit applies overhead at the rate of $8 p

> Cassien Inc. manufactures products that pass through two or more processes. During June, equivalent units were computed using the weighted average method: Units completed ……………………………………………………………………. 53,400 Units in EWIP 3 Fraction complete (36,000 3 60%

> On July 1, Job 46 had a beginning balance of $1,235. During July, prime costs added to the job totaled $560. Of that amount, direct materials were three times as much as direct labor. The ending balance of the job was $1,921. Required: 1. What was overh

> At the beginning of the year, Glaser Company estimated the following: Glaser uses departmental overhead rates. In the assembly department, overhead is applied on the basis of direct labor hours. In the testing department, overhead is applied on the bas

> At the beginning of the year, Horvath Company estimated the following: Overhead …………………………………… $486,400 Direct labor hours …………………………… 95,000 Horvath uses normal costing and applies overhead on the basis of direct labor hours. For the month of January,

> Ranger Company purchases 17,280 units of Product Beta each year in lots of 864 units per order. The cost of placing one order is $10, and the cost of carrying one unit of product in inventory for a year is $6. Required: 1. How many orders for Beta does

> a. Auto manufacturing b. Dental services c. Auto repair d. Costume making Required: CONCEPTUAL CONNECTION For each of the given types of industries, give an example of a firm that would use job-order costing. Then, give an example of a firm that would u

> a. Hospital services b. Custom cabinet making c. Toy manufacturing d. Soft-drink bottling e. Airplane manufacturing (e.g., 767s) f. Personal computer assembly g. Furniture making (e.g., computer desks sold at discount stores) h. Custom furniture making i

> Each of the following situations is independent. Required: 1. Kester Company had ending inventory cost of $5,000 under absorption costing. Ending inventory cost $3,400 under variable costing. Kester produced 16,000 units and sold 15,200. What was fixed

> Sommers Company uses the following rule to determine whether materials usage variances should be investigated: A materials usage variance will be investigated anytime the amount exceeds the lesser of $12,000 or 10% of the standard cost. Reports for the p

> Stillwater Designs rebuilds defective units of its S12L7 Kicker speaker model. During the year, Stillwater rebuilt 7,500 units. Materials and labor standards for performing the repairs are as follows: Direct materials (1 recon kit @ $150) ……………….. $150.

> In the coming year, Kalling Company expects to sell 28,700 units at $32 each. Kalling’s controller provided the following information for the coming year. Units production ………………………………………………… 30,000 Unit direct materials ……………………………………………. $9.95 Unit di

> Overton Company produced 80,000 units last year. The company sold 79,000 units and there was no beginning inventory. The company chose practical activity—at 80,000 units—to compute its predetermined overhead rate. Manufacturing costs are as follows: Dir

> Amiens Company produced 20,000 units during its first year of operations and sold 18,900 at $17 per unit. The company chose practical activity—at 20,000 units—to compute its predetermined overhead rate. Manufacturing costs are as follows: Direct materia

> Healder Company provided information on the following three overhead activities. Healder has found that the following driver levels are associated with two different levels of production. Required: Prepare an activity-based flexible budget for the tw

> Anker Company had the data below for its most recent year, ended December 31: Required: Prepare a performance report that shows the variances on an item-by-item basis. Actual costs: Variable overhead standar ds: Indirect labor S36,000 $3,800 1,490

> Last year, Gladner Company had planned to produce 140,000 units. However, 143,000 units were actually produced. The company uses direct labor hours to assign overhead to products. Each unit requires 0.9 standard hour of labor for completion. The fixed ov

> Zepol Company is planning to produce 600,000 power drills for the coming year. The company uses direct labor hours to assign overhead to products. Each drill requires 0.75 standard hour of labor for completion. The total budgeted overhead was $1,777,500.

> Ruth Swazey, divisional controller and certified management accountant, was upset by a recent memo she received from the divisional manager, Paul Chesser. Ruth was scheduled to present the division’s financial performance at headquarters in one week. In

> At April 30, the bank reconciliation of Back 40 Company shows three outstanding checks: No. 254 $650, No. 255 $700, and No. 257 $410. The May bank statement and the May cash payments journal are given here. Instructions Using step 2 in the reconciliatio

> Consider these transactions: (a) Tastee Restaurant accepted a Visa card in payment of a $200 lunch bill. The bank charges a 3% fee. What entry should Tastee make? (b) Martin Company sold its accounts receivable of $65,000. What entry should Martin make,

> On January 1, 2017, the Hermann Company ledger shows Equipment $36,000 and Accumulated Depreciation $13,600. The depreciation resulted from using the straight-line method with a useful life of 10 years and a salvage value of $2,000. On this date, the com

> While examining cash receipts information, the accounting department deter-mined the following information: opening cash balance $150, cash on hand $1,125.74, and cash sales per register tape $988.62. Prepare the required journal entry based upon the cas

> Gotham Company purchased a new machine on October 1, 2017, at a cost of $90,000. The company estimated that the machine has a salvage value of $8,000. The machine is expected to be used for 70,000 working hours during its 8-year life. Instructions Comput

> Sarasota Company has a credit balance of $2,200 in Allowance for Doubtful Accounts before adjustment. The estimated uncollectibles under the percentage- of-receivables basis is $5,100. Prepare the adjusting entry.

> Byrd Co. uses the percentage-of-receivables basis to record bad debt expense and concludes that 2% of accounts receivable will become uncollectible. Accounts receivable are $400,000 at the end of the year, and the allowance for doubtful accounts has a cr

> Assume the same information as BE8-3(given below) and that on March 4, 2017, Safer Co. receives payment of $4,300 in full from Madonna Inc. Prepare the journal entries to record this transaction. Data from Be8-3: At the end of 2016, Safer Co. has account

> Gordon Chemicals Company acquires a delivery truck at a cost of $31,000 on January 1, 2017. The truck is expected to have a salvage value of $4,000 at the end of its 4-year useful life. Compute annual depreciation for the first and second years using the

> For each of the following income statement line items, state whether the item is a “by nature” expense item or a “by function” expense item. ________ Cost of goods sold. ________ Utilities expense. ________ Depreciation expense. ________ Delivery expense

> In 2017, Bismark Company has net credit sales of $1,600,000 for the year. It had a beginning accounts receivable (net) balance of $108,000 and an ending accounts receivable (net) balance of $120,000. Compute Bismark Company’s (a) accounts receivable turn

> At the end of 2016, Safer Co. has accounts receivable of $700,000 and an allowance for doubtful accounts of $25,000. On January 24, 2017, it is learned that the company’s receivable from Madonna Inc. is not collectible and therefore management authorizes

> Krieg Company had the following two transactions related to its delivery truck. 1. Paid $38 for an oil change. 2. Paid $400 to install special shelving units, which increase the operating efficiency of the truck. Prepare Krieg’s journal entries to record

> Pat Buhn is the new owner of Young Co. She has heard about internal control but is not clear about its importance for her business. Explain to Pat the four purposes of internal control, and give her one application of each purpose for Young Co.

> Thoms Company incurs these expenditures in purchasing a truck: cash price $24,000, accident insurance (during use) $2,000, sales taxes $1,080, motor vehicle license $300, and painting and lettering $1,700. What is the cost of the truck?

> On January 10, Molly Amise uses her Lawton Co. credit card to purchase merchan-dise from Lawton Co. for $1,700. On February 10, Molly is billed for the amount due of $1,700. On February 12, Molly pays $1,100 on the balance due. On March 10, Molly is bill

> Record the following transactions on the books of Jarvis Co. (Omit cost of goods sold entries.) (a) On July 1, Jarvis Co. sold merchandise on account to Stacey Inc. for $23,000, terms 2/10, n/30. (b) On July 8, Stacey Inc. returned merchandise worth $2,4

> On March 1, Lincoln sold merchandise on account to Amelia Company for $28,000, terms 1/10, net 45. On March 6, Amelia returns merchandise with a sales price of $1,000. On March 11, Lincoln receives payment from Amelia for the balance due. Prepare journal

> These expenditures were incurred by Dobbin Company in purchasing land: cash price $60,000, accrued taxes $5,000, attorney’s fees $2,100, real estate broker’s commission $3,300, and clearing and grading $3,500. What is the cost of the land?

> On January 6, Jacob Co. sells merchandise on account to Harley Inc. for $9,200, terms 1/10, n/30. On January 16, Harley pays the amount due. Instructions Prepare the entries on Jacob Co.’s books to record the sale and related collection. (Omit cost of go

> Assume that on September 1, Office Depot had an inventory that included a variety of calculators. The company uses a perpetual inventory system. During September, these transactions occurred. Sept. 6 Purchased calculators from Dragoo Co. at a total cost

> On July 15, a company purchases on account goods costing $1,900, with credit terms of 2/10, n/30. On July 18, the company receives a $400 credit memo from the supplier for damaged goods. Give the journal entry on July 24 to record payment of the balance

> In the following cases, use a periodic inventory system to identify the item(s) designated by the letters X and Y. (a) Purchases − X − Y = Net purchases. (b) Cost of goods purchased − Net purchases = X. (c) Beginning inventory + X = Cost of goods availab

> Harbinger Inc. reported sales of $2 million for 2017. Accounts receivable decreased $150,000 and accounts payable increased $300,000. Compute cash receipts from customers, assuming that the receivable and payable transactions are related to operations.

> Identify the accounts that are added to or deducted from purchases to determine the cost of goods purchased under a periodic system. For each account, indicate (a) whether it is added or deducted, and (b) its normal balance.

> Suppose 3M Company reported the following financial data for 2017 and 2016 (in millions). Instructions (a) Calculate the current ratio for 3M for 2017 and 2016. (b) Suppose that at the end of 2017, 3M management used $300 million cash to pay off $300 mi

> Dowell Hardware reported cost of goods sold as follows. Dowell made two errors: 1. 2016 ending inventory was overstated by $2,000. 2. 2017 ending inventory was understated by $5,000. Instructions Compute the correct cost of goods sold for each year.

> If a 6%, 10-year, $800,000 bond is issued at face value and interest is paid annually, what is the amount of the interest payment at the end of the first period?

> Prepare the journal entries to record these transactions on Kimble Company’s books using a periodic inventory system. (a) On March 2, Kimble Company purchased $800,000 of merchandise from Poe Company, terms 2/10, n/30. (b) On March 6, Kimble Company retu

> Hoffman Corporation reported income taxes of $370,000,000 on its 2017 in-come statement and income taxes payable of $277,000,000 at December 31, 2016, and $528,000,000 at December 31, 2017. What amount of cash payments were made for in-come taxes during

> Dorsett Corporation reported sales revenue of $257,000, net income of $45,300, cash of $9,300, and net cash provided by operating activities of $23,200. Accounts receivable have increased at three times the rate of sales during the last 3 years. Instruct

> On October 5, Iverson Company buys merchandise on account from Lasse Company. The selling price of the goods is $5,000, and the cost to Lasse Company is $3,000. On October 8, Iverson returns defective goods with a selling price of $640 and a scrap value

> Cabo Corporation reported net income of $346,000, cash of $67,800, and net cash provided by operating activities of $221,200. What does this suggest about the quality of the company’s earnings? What further steps should be taken?

> Suppose Columbia Sportswear Company had accounts receivable of $299,585,000 at January 1, 2017, and $226,548,000 at December 31, 2017. Assume sales revenue was $1,244,023,000 for the year 2017. What is the amount of cash receipts from customers in 2017?

> Garten Corporation reported net sales $800,000, cost of goods sold $520,000, operating expenses $210,000, and net income $68,000. Calculate the following values and explain what they mean: (a) profit margin and (b) gross profit rate.

> Scribe Company reports net sales of $800,000, gross profit of $560,000, and net income of $230,000. What are its operating expenses?

> The trial balance of Mendez Company at the end of its fiscal year, August 31, 2017, includes these accounts: Beginning Inventory $18,700, Purchases $154,000, Sales Revenue $190,000, Freight-In $8,000, Sales Returns and Allowances $3,000, Freight-Out $1,0

> Dublin Corporation reported net sales of $250,000, cost of goods sold of $150,000, operating expenses of $50,000, net income of $32,500, beginning total assets of $520,000, and ending total assets of $600,000. Calculate each of the following values and e

> Suppose Canwest Global Communications Corp. reported net cash used by operating activities of $104,539,000 and sales revenue of $2,867,459,000 during 2017. Cash spent on plant asset additions during the year was $79,330,000. Calculate free cash flow.

> Here is the income statement for Myers, Inc. Additional information: 1. Common stock outstanding January 1, 2017, was 32,000 shares, and 40,000 shares were outstanding at December 31, 2017. 2. The market price of Myers stock was $14 in 2017. 3. Cash div

> Assume the same information as in BE5-9 and also that Spacey Company has beginning inventory of $60,000, ending inventory of $90,000, and net sales of $612,000. Determine the amounts to be reported for cost of goods sold and gross profit. Data from BE5-9

> SUPERVALU, one of the largest grocery retailers in the United States, is head-quartered in Minneapolis. Suppose the following financial information (in millions) was taken from the company’s 2017 annual report: net sales $44,597, net income $393, beginni

> Presented here are the components in Salas Company’s income statement. Determine the missing amounts. Sales Cost of Gross Operating Expenses (d) (e) $46,200 Net Goods Sold Revenue $ 71,200 $108,000 (a) Profit $ 30,000 (c) $109,600 I

> Suppose these selected condensed data are taken from recent balance sheets of Bob Evans Farms (in thousands). Compute the current ratio for each year and comment on your results. 2017 2016 $ 13,606 $ 7,669 19,951 31,345 11,909 Cash Accounts receivab

> Sprouts Corporation reported net cash provided by operating activities of $412,000, net cash used by investing activities of $250,000, and net cash provided by financing activities of $70,000. In addition, cash spent for capital assets during the period

> Information for two companies in the same industry, Merrill Corporation and Wingate Corporation, is presented here. Instructions Compute free cash flow for both companies and compare. Merrill Wingate Corporation Corporation $ 80,000 Net cash provided

> Tascon Corporation sells coffee beans, which are sensitive to price fluctuations. The following inventory information is available for this product at December 31, 2017. Instructions Calculate Tascon’s inventory by applying the lower-o

> In its income statement for the year ended December 31, 2017, Laine Inc. reported the following condensed data. Instructions (a) Prepare an income statement. (b) Prepare a comprehensive income statement. $ 725,000 Operating expenses Cost of goods so

> Assume that Spacey Company uses a periodic inventory system and has these account balances: Purchases $404,000, Purchase Returns and Allowances $13,000, Purchase Discounts $9,000, and Freight-In $16,000. Determine net purchases and cost of goods purchase

> Ravine Company issues $400,000, 20-year, 7% bonds at 101. Prepare the journal entry to record the sale of these bonds on June 1, 2017.

> Suppose the following is 2017 information for PepsiCo, Inc. and The Coca-Cola Company. Instructions Compute free cash flow for both companies and compare. ($ in millions) Coca-Cola Pepsico $ 6,796 8,772 5,979 43,232 2,128 2,732 $ 8,186 Net cash provi

> Suppose during 2017 that Cypress Semiconductor Corporation reported net cash provided by operating activities of $89,303,000, cash used in investing of $43,126,000, and cash used in financing of $7,368,000. In addition, cash spent for fixed assets during

> Digital Camera Shop Inc. uses the lower-of-cost-or-market basis for its inventory. The following data are available at December 31. Instructions What amount should be reported on Digital Camera Shop’s financial statements, assuming the

> Hana Ascot is planning to start a business. Identify for Hana the advantages and disadvantages of the corporate form of business organization.

> Winnebago Industries, Inc. is a leading manufacturer of motor homes. Suppose Winnebago reported ending inventory at August 29, 2017, of $46,850,000 under the LIFO inventory method. In the notes to its financial statements, assume Winnebago reported a LIF

> Suppose in its income statement for the year ended June 30, 2017, The Clorox Company reported the following condensed data (dollars in millions). Instructions (a) Prepare a multiple-step income statement. (b) Calculate the gross profit rate and the prof