Question: Home Gifts Inc. had cash sales of $

> Basu Company produces two types of sleds for playing in the snow: basic sled and aerosled. The projected income for the coming year, segmented by product line, follows:The selling prices are $30 for the basic sled and $60 for the aerosled.Required:1. Com

> Suppose that Stillwater Designs has two classes of distributors: JIT distributors and non JIT distributors. The JIT distributor places small, frequent orders, and the non JIT distributor tends to place larger, less frequent orders. Both types of distribu

> Jasper Company provided the following information for last year:Sales in units ………………………………………………. 280,000Selling price ………………………………………………………. $ 12Direct materials …………………………………………… 180,000Direct labor …………………………………………………. 505,000Manufacturing overhead …

> Zanda Drug Corporation buys three chemicals that are processed to produce two types of analgesics used as ingredients for popular over-the-counter drugs. The purchased chemicals are blended for two to three hours and then heated for 15 minutes. The resul

> Booth Manufacturing has provided the following financial statements.\[/\]/Booth ManufacturingIncome StatementFor the Year Ended December 31, 2014Revenues …………â€&br

> Suppose that a surgical ward has gathered the following information for four nursing activities and two types of patients:Required:1. Determine the total nursing costs assigned to each patient category.2. Output is measured in patient days. Assuming that

> The following information pertains to Chacon Inc. for last year:Beginning inventory in units ………………………………………. 5,000Units produced ………………………………………………………… 20,000Units sold …………………………………………………………………. 23,700Costs per unit:Direct materials …………………………………………………

> Dr. Whitley Avard, a plastic surgeon, had just returned from a conference in which she learned of a new surgical procedure for removing wrinkles around eyes, reducing the time to perform the normal procedure by 50%. Given her patient-load pressures, Dr.

> Booth Manufacturing has provided the following financial statements.Booth ManufacturingIncome StatementFor the Year Ended December 31, 2014Revenues ……………&

> Golding Company, a job-order costing firm, worked on three jobs in July. Data are as follows:Overhead is applied to jobs at the rate of $16 per machine hour. By July 31, Jobs 106 and 108 were completed. Jobs 102 and 106 were sold. Job 107 remained in pro

> Ondi Airlines is interested in acquiring a new aircraft to service a new route. The route will be from Tulsa to Denver. The aircraft will fly one round-trip daily except for scheduled maintenance days. There are 15 maintenance days scheduled each year. T

> The following financial statements were provided by Roberts Company:\]/At the end of 2014, Roberts purchased some additional equipment for $20,000.Required:Calculate operating cash flows using the direct method

> Mino Inc. manufactures chocolate syrup in three departments: Cooking, Mixing, and Bottling. Mino uses the weighted average method. The following are cost and production data for the cooking department for April (Note: Assume that units are measured in ga

> Langer Company produces plastic items, including plastic housings for humidifiers. Each housing requires about 15 ounces of plastic costing $0.08 per ounce. Langer molds the plastic into the proper shape. Langer has budgeted production of the housings fo

> Juroe Company provided the following income statement for last year:Sales …………………………………………………………..……… $11,300,000Cost of goods sold ………………………………………………… 3,000,000Gross margin …………………………………………….……… $ 8,300,000Operating expenses ……………………………………………… 3,800,

> In March, Chilton Company purchased materials costing $25,000 and incurred direct labor cost of $10,000. Overhead totaled $42,000 for the month. Information on inventories was as follows:\[/\]/Required:1. What was the cost of direct materials used in Mar

> Knitpix Products is a division of Parker Textiles Inc. During the coming year, it expects to earn income of $310,000 based on sales of $3.45 million. Without any new investments, the division will have average operating assets of $3 million. The division

> Smooth Move Company manufactures professional paperweights and has been approached by a new customer with an offer to purchase 15,000 units at a per-unit price of $7.00. The new customer is geographically separated from Smooth Move’s other customers, and

> The following information was obtained for the grinding department of Harlan Company for May:a. BWIP had 91,500 units, 30% complete with respect to manufacturing costs.b. EWIP had 25,200 units, 25% complete with respect to manufacturing costs.c. Started

> Alard Company produces blenders and coffee makers. During the past year, the company produced and sold 65,000 blenders and 75,000 coffee makers. Fixed costs for Alard totaled $340,000, of which $184,000 can be avoided if the blenders are not produced and

> Peanut-Fresh Inc. produces all-natural organic peanut butter. The peanut butter is sold in 12-ounce jars. The sales budget for the first four months of the year is as follows:Company policy requires that ending inventories for each month be 20% of next m

> At the beginning of the year, Lopez Company had the following standard cost sheet for one of its chemical products:Direct materials (4 lbs. @ $2.80) ………………… $11.20Direct labor (2 hrs. @ $18.00) ……………………... 36.00FOH (2 hrs. @ $5.20) …………………………………. 10.40VO

> Borques Company produces and sells wooden pallets that are used for moving and stacking materials. The operating costs for the past year were as follows:Variable costs per unit:Direct materials ……………………………………… $2.85Direct labor …………………………………………….. $1.92V

> H. Banks Company would like to design, produce, and sell versatile toasters for the home kitchen market. The toaster will have four slots that adjust in thickness to accommodate both slim slices of bread and oversized bagels. The target price is $60. Ban

> The income statement for Piura Merchandising Corporation is as follows:Other information is as follows:a. Accounts payable decreased by $20,000 during the year.b. Accounts receivable increased by $20,000.c. All wages were paid at the beginning of the yea

> Texas-Q Company produces and sells barbeque grills. Texas-Q sells three models: a small portable gas grill, a larger stationary gas grill, and the specialty smoker. In the coming year, Texas-Q expects to sell 20,000 portable grills, 50,000 stationary gri

> Leslie Blandings, division manager of Audiotech Inc., was debating the merits of a new product—a weather radio that would put out a warning if the county in which the listener lived were under a severe thunderstorm or tornado alert.The budgeted income of

> Bryce Company manufactures pet supplies. However, Bryce’s electronic accounting system recently crashed and, unfortunately, only a partial recovery of the company’s year-end accounting records (which included several profitability ratios) was possible. A

> Each of the following scenarios is independent. Assume that all cash flows are after-tax cash flows.a. Colby Hepworth has just invested $400,000 in a book and video store. She expects to receivea cash income of $120,000 per year from the investment.b. Ky

> During the past year, the high and low use of three different resources for Fly High Airlines occurred in July and April. The resources are airplane depreciation, fuel, and airplane maintenance. The number of airplane flight hours is the driver. The tota

> Cherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDs and a basic equipment set (blocks, strap, and small pillows). Last year, Cherry Blossom Products sold 13,500 DVDs and 4,500 equipment sets. Information on the two product

> Cherry Blossom Products Inc. produces and sells yoga-training products: how-to DVDs and a basic equipment set (blocks, strap, and small pillows). Last year, Cherry Blossom Products sold 13,500 DVDs and 4,500 equipment sets. Information on the two product

> Oliver Company provided the following information for the years 2013 and 2014:Oliver CompanyIncome StatementFor the Year Ended December 31, 2014Sales …………â€&brvbar

> Budgeted amounts for the year:Materials ………………………………….. 2 leather strips @ $7.00Labor …………………….…………………………….. 1.5 hr. @ $18.00VOH ……………………………..………………………… 1.5 hr. @ $1.20FOH …………………………………………………………………… $6,800Required:1. Prepare a flexible budget for 3,500,

> Information on four independent companies follows. Calculate the correct amount for each question mark. (Note: Round unit dollar amounts and ratios to two decimal places; round break-even units to the nearest whole unit.),,,

> Spiro Hospital is investigating the possibility of investing in new dialysis equipment. Two local manufacturers of this equipment are being considered as sources of the equipment. After-tax cash inflows for the two competing projects are as follows:Both

> For the coming year, Paulson Computers Inc. expects to produce 144,000 computers. Of these, 64,000 will be consumer (personal) computers and 80,000 will be small business computers. Common fixed overhead is $1,700,000. Additional information for the comi

> Cinturon Corporation produces high-quality leather belts. The company’s plant in Boise uses a standard costing system and has set the following standards for materials and labor:Leather (3 strips @ $4) …………………………… $12.00Direct labor (0.75 hr. @ $12) …………

> Quillen Company manufactures a product in a factory that has two producing departments, Cutting and Sewing, and two support departments, S1 and S2. The activity driver for S1 is number of employees, and the activity driver for S2 is number of maintenance

> Pelak Company had sales of $25,000,000, expenses of $17,500,000, and average operating assets of $10,000,000.Required:Compute the (1) operating income,(2) margin and turnover ratios, and(3) ROI

> The following accounting information pertains to two retail stores that specialize in selling winter ski gear. Aspen Sports operates only a few locations and has a market strategy of selling only high-end ski gear. Discount Ski has many locations but sel

> Beth Malone owned a small company that sold boating equipment. The equipment was expensive, and a perpetual system was maintained for control purposes. Even so, lost, damaged, and stolen merchandise normally amounted to 5 percent of the inventory balance

> Frank Jones, the owner of Frank’s Hunting Supplies, is surprised at the amount of actual inventory at the end of the year. He thought there should be more inventory on hand based on the amount of sales for the year. The following inform

> The ending inventory for Oak Co. was erroneously written down, causing an understatement of $6,500 at the end of Year 2. Required: Was each of the following amounts overstated, understated, or not affected by the error? Item No. Year Amount Year 2

> Bosh Company failed to count $22,000 of inventory in its Year 1 year-end physical count. Required: Explain how this error will affect Bosh’s Year 1 financial statements, assuming that Bosh uses the perpetual inventory system.

> Harvey Company carries three inventory items. The following information pertains to the ending inventory: Required: a. Determine the ending inventory that will be reported on the balance sheet, assuming that Harvey applies the lower-of-cost-or market r

> The following information pertains to James Hardware’s ending inventory for the current year: Required: a. Determine the value of the ending inventory using the lower-of-cost-or-market rule applied to (1) each individual inventory ite

> Nash Auto Parts, Inc. had the following transactions for Year 2: Required: a. Determine the quantity and dollar amount of inventory at the end of the year, assuming Nash Auto Parts, Inc. uses the FIFO cost flow assumption and keeps perpetual records. b

> The following inventory transactions apply to Duncan Steel Company for Year 2: The beginning inventory consisted of 180 units at $10 per unit. All transactions are cash transactions. Required: a. Record these transactions in general journal format ass

> The following information pertains to the inventory of the Bryant Company: During the year, Bryant sold 3,500 units of inventory at $50 per unit and incurred $21,000 of operating expenses. Bryant currently uses the FIFO method but is considering a chan

> Scott Sales had the following transactions for jackets in Year 1, its first year of operations: During the year, Scott Sales sold 830 jackets for $40 each. Required: a. Compute the amount of ending inventory Scott would report on the balance sheet, as

> The following information pertains to Stanley Company for Year 2: Ending inventory consisted of 40 units. Stanley sold 370 units at $30 each. All purchases and sales were made with cash. Required: a. Compute the gross margin for Stanley Company using

> The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: During the year, The Shirt Shop sold 810 T-shirts for $20 each. Required: a. Compute the amount of ending inventory The Shirt Shop would report on the

> Cortez Company sells chairs that are used at computer stations. Its beginning inventory of chairs was 100 units at $60 per unit. During the year, Cortez made two batch purchases of this chair. The first was a 150-unit purchase at $68 per unit; the second

> Generally accepted accounting principles (GAAP) and International Financial Reporting Standards (IFRS) treat the LIFO inventory cost flow method differently. Required: a. Briefly describe the position GAAP takes with respect to LIFO. b. Briefly describe

> The following information related to accounting for inventory was taken from the 2016 annual report of Costco Wholesale Corporation: Merchandise inventories consist of the following at the end of 2016 and 2015: Merchandise inventories are valued at the

> The following accounting information pertains to two grocery store chains. One grocery store chain has a market strategy of selling only high-end organic food products while the other grocery store sells less expensive foods that are traditionally grown

> Brad Essary owned a small company that sold garden equipment. The equipment was expensive, and a perpetual system was maintained for control purposes. Even so, lost, damaged, and stolen merchandise normally amounted to 5 percent of the inventory balance.

> A substantial portion of inventory owned by Prentiss Sporting Goods was recently destroyed when the roof collapsed during a rainstorm. Prentiss also lost some of its accounting records. Prentiss must estimate the loss from the storm for insurance reporti

> Using Coca-Cola Company’s most current Form 10-K, answer the questions below. To obtain the Form 10-K, you can use the EDGAR system, following the instructions in Appendix A, or it can be found on the company’s website. Required: a. What was Coke’s gros

> The ending inventory for Carver Co. was incorrectly adjusted, which caused it to be understated by $15,300 for Year 2. Required: Was each of the following amounts overstated, understated, or not affected by the error? Item No. Year Amount 1 Year 2

> Stubbs Company failed to count $55,000 of inventory in its Year 1 year-end physical count. Required: Write a memo explaining how Stubbs Company’s balance sheet will be affected in Year 1. Assume Stubbs uses the perpetual inventory system.

> Brooks Company carries three inventory items. The following information pertains to the ending inventory: a. Determine the ending inventory that Brooks will report on the balance sheet, assuming that it applies the lower-of-cost-or-market rule to indiv

> The following information pertains to Hagen Metal Works’ ending inventory for the current year: Required: a. Determine the value of the ending inventory using the lower-of-cost-or-market rule applied to (1) each individual inventory i

> The Hat Store had the following series of transactions for Year 2: Required: a. Determine the quantity and dollar amount of inventory at the end of the year, assuming The Hat Store uses the FIFO cost flow assumption and keeps perpetual records. b. Writ

> The following inventory transactions apply to Green Company for Year 2: The beginning inventory consisted of 180 units at $48 per unit. All transactions are cash transactions. Required: a. Record these transactions in general journal format assuming G

> The Brick Company had cash sales of $280,000 for Year 1, its first year of operation. On April 2, the company purchased 210 units of inventory at $390 per unit. On September 1, an additional 160 units were purchased for $425 per unit. The company had 110

> The following information pertains to the inventory of Parvin Company during Year 2: During Year 2, Parvin sold 2,700 units of inventory at $90 per unit and incurred $41,500 of operating expenses. Parvin currently uses the FIFO method but is considerin

> The trial balance of Pacilio Security Services, Inc. as of January 1, Year 5, had the following normal balances: During Year 5, Pacilio Security Services experienced the following transactions: 1. Paid the salaries payable from Year 4. 2. On January 15

> The following data were extracted from the 2016 financial statements of Penske Automotive Group, Inc. This company operates automobile dealerships, mostly in the United States, Canada, and Western Europe, and commercial truck dealerships in Australia, Ne

> Ada Fontanez is the president of a large company that owns a chain of athletic shoe stores. The company was in dire financial condition when she was hired three years ago. In an effort to motivate Fontanez, the board of directors included a bonus plan as

> The accounting records of Blue Bird Co. showed the following balances at January 1, Year 2: Transactions for Year 2 were as follows: Required: a. Organize the class into three sections, and divide each section into groups of three to five students. A

> Obtain the Target Corporation’s annual report at http://investors.target.com using the instructions in Appendix B, and use it to answer the following questions: a. What was Target’s inventory turnover ratio and average days to sell inventory for the fisc

> Using either Gap’s most current Form 10-K or the company’s annual report, answer the questions below. To obtain the Form 10-K, use either the EDGAR system, following the instructions in Appendix A, or the company&acirc

> Clair Coolage is the chief accountant for a sales company called Far Eastern Imports. The company has been highly successful and is trying to increase its capital base by attracting new investors. The company operates in an inflationary environment and h

> The following information is available for Leno Company: Leno Company currently uses the FIFO cost flow method for financial statement reporting and tax reporting. It is considering changing to the LIFO cost flow method for tax reporting purposes. If L

> Ruby Tuesday’s, Inc. operated 646 casual dining restaurants across the United States as of May 31, 2016. Signet Jewelers Limited claims to be the world’s largest retailer of diamond jewelry. Its stores include Zales, J

> Costco Wholesale Corporation operated 715 stores as of August 28, 2016. The following data were taken from the company’s annual report. All dollar amounts are in millions. Required: a. Compute Costco’s inventory turn

> Mano Company was started in Year 1 when it acquired $40,000 from the issue of common stock. The following data summarize the company’s first three years’ operating activities. Assume that all transactions were cash tra

> Required Indicate whether each of the following costs is a product cost or a period cost: a. Cleaning supplies for the office. b. Freight on goods purchased for resale. c. Salary of the marketing director. d. Freight on goods sold to customer with terms

> The following trial balance pertains to Simmons Hardware as of January 1, Year 2: The following events occurred in Year 2. Assume that Simmons Hardware uses the periodic inventory system. 1. Purchased land for $16,000 cash. 2. Purchased merchandise on

> Bell Farm and Garden Equipment Co. reported the following information for Year 1: Selected information from the balance sheet as of December 31, Year 1, follows: Assume that a major customer returned a large order to Bell on December 31, Year 1. The

> The following account titles and balances were taken from the adjusted trial balance of Hogan Sales Co. at December 31, Year 2. The company uses the periodic inventory method. Required: a. Prepare a schedule to determine the amount of cost of goods sol

> The following information was drawn from the records of Moore Sales Company: Required: a. Prepare a multistep income statement for each year. b. Prepare a common size income statement for each year. c. Assume that the operating trends between Year 1 an

> At the beginning of Year 2, EuRo Enterprises had the following balances in its accounts: During Year 2, EuRo Enterprises experienced the following events: 1. Purchased inventory that cost $11,200 on account from Ivey Company under terms 2/10, n/30. The

> Indicate whether each of the following costs is a product cost or a period (selling and administrative) cost: a. Goods purchased for resale. b. Salaries of salespersons. c. Advertising costs. d. Transportation-out. e. Interest on a note payable. f. Salar

> The following trial balance pertains to Benji’s Grocery as of January 1, Year 2: The following events occurred in Year 2. Assume that Benji’s uses the periodic inventory method. 1. Purchased land for $30,000 cash. 2.

> The following account titles and balances were taken from the adjusted trial balance of King Co. for Year 2. The company uses the periodic inventory system. Required: a. Prepare a schedule to determine the amount of cost of goods sold. b. Prepare a mul

> The following information was drawn from the records of Toner Sales Company: a. Prepare a multistep income statement for each year. b. Prepare a common size income statement for each year. c. At a recent meeting of the stockholders, Tonerâ€&

> At the beginning of Year 2, the Redd Company had the following balances in its accounts: During Year 2, the company experienced the following events: 1. Purchased inventory that cost $5,200 on account from Ross Company under terms 1/10, n/30. The merch

> Blooming Flower Company was started in Year 1 when it acquired $60,000 cash from the issue of common stock. The following data summarize the company’s first three years’ operating activities. Assume that all transactio

> During Year 1, Rondor Merchandising Company purchased $40,000 of inventory on account. The company sold inventory on account that cost $30,000 for $50,000. Cash payments on accounts payable were $24,500. There was $38,000 cash collected from accounts rec

> The Kroger Co. was founded in 1883 and is one of the largest retailers in the world, based on annual sales. Whole Foods Market claims to be the world’s largest retailer of natural and organic foods. Whole Foods offers specialty products

> Jason Kidd started a small merchandising business in Year 1. The business experienced the following events during its first year of operation. Assume that Kidd uses the perpetual inventory system. 1. Acquired $90,000 cash from the issue of common stock.

> The following information is available for two different types of businesses for the Year 1 accounting year. Diamond Consulting is a service business that provides consulting services to small businesses. University Bookstore is a merchandising business

> The following events apply to Sally’s Gift Shop for Year 1, its first year of operation: 1. Acquired $60,000 cash from the issue of common stock. 2. Issued common stock to Sally Quin, one of the owners, in exchange for merchandise inventory worth $3,200

> Far East Retailers uses the periodic inventory system to account for its inventory transactions. The following account titles and balances were drawn from Far East’s records for Year 2: beginning balance in inventory, $46,200; purchases, $352,400; purcha

> Rick Dove is the owner of RD Cleaning. At the beginning of the year, RD Cleaning had $4,800 in inventory. During the year, RD Cleaning purchased inventory that cost $26,000. At the end of the year, inventory on hand amounted to $3,600. Required: Calcula

> The following information is available for Billings and Phoenix companies: Required: a. Prepare a common size income statement for each company. b. Compute the return on assets and return on equity for each company. c. Which company is more profitable

> The following income statements were drawn from the annual reports of Athens Company and Boulder Company: Required: a. One of the companies is a high-end retailer that operates in exclusive shopping malls. The other operates discount stores located in