Powers Inc. produces a protein drink. The product is sold by the gallon. The company has two departments: mixing and bottling. For August, the bottling department had 70,000 gallons in beginning inventory (with transferred-in costs of $283,000) and completed 262,500 gallons during the month. Further, the mixing department completed and transferred out 240,000 gallons at a cost of $957,000 in August. Required: 1. Prepare a physical flow schedule for the bottling department. 2. Calculate equivalent units for the transferred-in category. 3. Calculate the unit cost for the transferred-in category.
> Chillmax Company plans to sell 3,500 pairs of shoes at $60 each in the coming year. Unit variable cost is $21 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Fixed factory overhead is $30,000 and fixed
> Chillmax Company plans to sell 3,500 pairs of casual shoes at $60 each in the coming year. Product costs include: Direct materials per pair …………………………………..$12 Direct labor per pair ……………………………………………4 Variable factory overhead per pair ……………………….2 Total
> Corey Company provided the following information: Standard fixed overhead rate (SFOR) per direct labor hour …….$10.00 Actual fixed overhead ………………………………………………………...$425,000 Budgeted fixed overhead …………………………………………………..$500,000 Actual production in units
> Bulger Company provided the following data: Standard fixed overhead rate (SFOR) ……..$8 per direct labor hour Actual fixed overhead costs ………………………………………….$985,300 Standard hours allowed per unit ………………………………………6 hours Actual production …………………………………………
> Potter Company provided the following information: Required: Prepare a performance report that shows the variances for each variable overhead item (inspection and power). Standard variable overhead rate (SVOR) per direct labor hour $5.00 Actual v
> Refer to the information for Ambient Inc. above. Required: Calculate the labor rate and efficiency variances using the columnar and formula approaches. Data for Problem 37: Ambient Inc. produces aluminum cans. Each can has a standard labor requirement
> Patrick Inc. sells industrial solvents in 5-gallon drums. Patrick expects the following units to be sold in the first 3 months of the coming year: January ………………………….41,000 February …………………………38,000 March ……………………………..50,000 The average price for a dru
> Refer to the information for Ambient Inc. above. Required: Calculate the total variance for production labor for the month of May. Data for Problem 36: Ambient Inc. produces aluminum cans. Each can has a standard labor requirement of 0.03 hour. During
> Refer to the information for Young Inc. above. Required: Calculate the materials price and usage variances using the columnar and formula approaches. Data for Exercise 35: Young Inc. produces plastic bottles. Production of 16-ounce bottles has a stand
> Refer to the information for Young Inc. above. Required: Calculate the total variance for plastic for the month of June Data for Exercise 34: Young Inc. produces plastic bottles. Production of 16-ounce bottles has a standard unit quantity of 0.45 ounc
> During the last 6 weeks, the actual costs of labor for Solsana Company were as follows: The standard materials cost for each week was $40,000 with an allowable deviation of ±5,000. Required: Plot the actual costs over time against the
> Dulce Company produces chocolate. Each pound of chocolate requires 400 cocoa beans (the unit quantity standard) and 0.15 labor hour (the unit labor standard). During the year, 480,000 pounds of chocolate were produced. Required: 1. Calculate the number
> Balboa Company budgeted production of 4,500 units with the following amounts: At the end of the year, Balboa had the following actual costs for production of 4,700 units: Required: 1. Calculate the budgeted amounts for each cost category listed ab
> Balboa Company budgeted the following amounts: Required: Prepare a flexible budget for 4,000 units, 4,500 units, and 5,000 units. Variable costs of production: Direct materials 3 pounds @ $1.30 per pound 0.5 hr. @ $18.00 per hour 0.5 hr. @ $3.40
> Oliver’s Bistro provided the following information for the month of October: a. Sales are budgeted to be $395,000. About 80% of sales is cash; the remainder is on account. b. Oliver’s Bistro expects that, on average, 70% of credit sales will be paid in t
> Pilsner Inc. purchases raw materials on account for use in production. The direct materials purchases budget shows the following expected purchases on account: April …………………………..$374,400 May ……………………………….411,200 June …………………………….416,000 Pilsner typica
> Weiland and Company is a medical billing services firm. All sales of billing services are billed to the client (there are no cash sales). Weiland expects that, on average, 15% will be paid in the month of billing, 40% will be paid in the month following
> During the year, Swasey Company sold equipment with a book value of $560,000 for $760,000 (original purchase cost of $960,000). New equipment was purchased. Swasey provided the following comparative balance sheets: Required: Calculate the investing cas
> Jameson Company provided the following information for the coming year: Units produced and sold …………………………………………………………..230,000 Cost of goods sold per unit …………………………………………………………….$5.30 Selling price …………………………………………………………………………………$9.70 Variable sellin
> Elwood Company makes and sells plastic trash bags. In the coming year, Elwood expects total sales of $18,620,000. There is a 4% commission on sales. In addition, fixed expenses of the sales and administrative offices include the following: Salaries…………
> Lazlo Company manufactures a line of table lamps. Each lamp takes $5.00 of direct materials and uses 0.9 direct labor hour at $18.00 per direct labor hour. The variable overhead rate is $1.00 per direct labor hour and the fixed overhead rate is $2.00 per
> Lazlo Company manufactures a line of table lamps. Each lamp takes $5 of direct materials and uses 0.9 direct labor hour at $18 per direct labor hour. The variable overhead rate is $1.00 per direct labor hour, and the fixed overhead rate is $2.00 per dire
> Tulum Inc. makes a Mexican chocolate mix. Budgeted direct labor hours for the first 3 months of the coming year are: January ……………………………….9,880 February ……………………………..8,800 March ………………………………….12,200 The variable overhead rate is $0.50 per direct labo
> Tulum Inc. makes a Mexican chocolate mix. Planned production in units for the first 3 months of the coming year is: January ………………………….24,700 February ………………………..22,000 March ……………………………30,200 Each box of chocolate mix takes 0.4 direct labor hour. The
> Tulum Inc. makes a Mexican chocolate mix. In the first 4 months of the coming year, Tulum expects the following unit sales: January …………………………22,000 February ……………………….20,000 March ……………………………30,000 April ……………………………….31,000 Tulum’s policy is to have 2
> Tulum Inc. sells powdered Mexican chocolate to restaurants. Its basic unit is a 4-pound box of the spiced chocolate mixture. Tulum expects the following units to be sold in the first 3 months of the coming year: January …………………………..22,000 February ……………
> Sisters, Inc. manufactures professional-level printers that perform multiple features, such as high-resolution color scanning, printing, faxing, and copying. The new printer model has a target price of $600. Management requires a 20% profit on new produc
> Enviro Consulting Firm provides various environmental consulting services to organizations. Enviro has decided to price its jobs at the total direct variable costs of the job plus 10%. The job for a new client included the following costs: Direct materi
> Refer to the information for Barnard Manufacturing on the previous page. Round answers to two decimal places. Required: Calculate (1) average operating assets, (2) margin, (3) turnover, and (4) return on investment. Data for Exercise 19: Barnard Manuf
> Kraft Bowlen owns two sports franchises—the Bladers (a hockey team) and the Ballers (a basketball team). The following information was provided for the coming year. A sales commission of 5% of sales revenue is paid for each of the two
> Chillmax Company had planned to sell 3,500 pairs of shoes at $60 each in the coming year. Unit variable cost is $21 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $78,000 (inclu
> Chillmax Company plans to sell 3,500 pairs of shoes at $60 each in the coming year. Unit variable cost is $21 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $78,000 (includes fi
> Chillmax Company plans to sell 3,500 pairs of shoes at $60 each in the coming year. Unit variable cost is $21 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $78,000 (includes fi
> Chillmax Company now sells both pairs of shoes and carryalls. Next year, Chillmax expects to produce total revenue of $210,000 and incur total variable cost of $81,375. Total fixed cost is expected to be $91,500. Required: 1. Calculate the break-even po
> Chillmax Company plans to sell 3,500 pairs of shoes at $60 each in the coming year. Variable cost is 35% of the sales price; contribution margin is 65% of the sales price. Total fixed cost equals $78,000 (includes fixed factory overhead and fixed selling
> Vigor Inc. produces an energy drink. The product is sold by the quart. The company has two departments: mixing and bottling. For May, the bottling department had 30,000 quarts in beginning inventory (with transferred-in costs of $63,000) and completed 14
> Ming Inc. had the following production and cost information for its blending department during February (with materials added at the beginning of the process): Ming uses the weighted average method. Required: 1. Prepare an equivalent units schedule. 2
> Washburn Inc. manufactures precision tools in two departments: molding and finishing. Washburn uses the weighted average method. Manufacturing costs are added uniformly throughout the process. The following are cost and production data for the molding de
> Craig Inc. just finished its third month of operations. Craig mass-produces carburetors used in motorcycle engines. The following production information is provided for December: Units in process, December 1, 60% complete …………….60,000 Units completed an
> Gorman Nurseries Inc. grows poinsettias and fruit trees in a green house/nursery operation. The following information was provided for the coming year. A sales commission of 4% of sales is paid for each of the two product lines. Direct fixed selling an
> Polson Enterprises produces strawberry gelato. Output is measured in quarts. Polson uses the weighted average method. During July, Polson had the following production data: Units in process, July 1, 60% complete………………….54,000 quarts Units completed and
> During August, the drilling department of Arenal Inc. completed and transferred out 190,000 units. At the end of August, there were 42,700 units in process, 70% complete. Arenal incurred manufacturing costs totaling $1,759,120. Required: 1. Calculate th
> Branch Company provided the following information: Standard fixed overhead rate (SFOR) per direct labor hour ……..$5.00 Actual fixed overhead ……………………………………………………….$305,000 BFO………………………………………………………………………………….$300,000 Actual production in units ………………………
> Rath Company showed the following information for the year: Standard variable overhead rate (SVOR) per direct labor hour …….$3.75 Standard hours (SH) allowed per unit ………………………………………………..4 Actual production in units ………………………………………………………….15,000 Actual
> Refer to the information for Tico Inc. on the previous page. Required: Calculate the total variance for production labor for the month of April. Data for Exercise 25: Tico Inc. produces plastic bottles. Each bottle has a standard labor requirement of
> Refer to the information for Krumple Inc. above. Required: Calculate the materials price and usage variances using the columnar and formula approaches. Data for Exercise 24: Krumple Inc. produces aluminum cans. Production of 12-ounce cans has a standa
> Refer to the information for Krumple Inc. above. Required: Calculate the total variance for aluminum for the month of April. Data for Exercise 23: Krumple Inc. produces aluminum cans. Production of 12-ounce cans has a standard unit quantity of 4.7 oun
> During the last 6 weeks, the actual costs of materials for Brennen Company were as follows: The standard materials cost for each week was $60,000 with an allowable deviation of ±6,000. Required: Plot the actual costs over time against th
> Miel Company produces ready-to-cook oatmeal. Each carton of oatmeal requires 16 ounces of rolled oats per carton (the unit quantity standard) and 0.04 labor hour (the unit labor standard). During the year, 960,000 cartons of oatmeal were produced. Requi
> During the last 2 years of operations, Haws Company had the following transactions: a. Reported a loss for the year ($800,000). b. Reported profits of $6,000,000 for the most recent year. c. Issued bonds with a 6-year maturity date for $2,000,000. d. Ret
> Carter Inc. had the following production and cost information for its fabrication department during April (with materials added at the beginning of the fabrication process): Carter uses the weighted average method. Required: 1. Prepare an equivalent u
> Golding Inc. just finished its second month of operations. Golding mass-produces integrated circuits. The following production information is provided for December: Units in process, December 1, 80% complete ……………….160,000 Units completed and transferre
> Applegate Enterprises produces premier raspberry jam. Output is measured in pints. Applegate uses the weighted average method. During January, Applegate had the following production data: Units in process, January 1, 60% complete ……………108,000 pints Unit
> Klynveld Company’s balance sheet shows total liabilities of $94,000,000, total stockholders’ equity of $75,000,000, and total assets of $169,000,000. Required: Note: Round answers to two decimal places. 1. Calculate the debt ratio. 2. Calculate the debt
> Alessandra Makeup Manufacturers provided the following income statement for last year: Sales ………………………………………………..$51,350,000 Cost of goods sold ……………………………….19,250,000 Gross margin …………………………………….$32,100,000 Operating expenses ………………………………6,200,000 Oper
> Refer to the information for Toby’s on the previous page. Required: Note: Round answers to one decimal place. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate the accounts
> LoLo Lemon Company has current assets equal to $500,000. Of these, $300,000 is cash, $75,000 is accounts receivable, $125,000 is inventory, and the remainder is marketable securities. Current liabilities total $425,000. Required: Note: Round answers to
> Frankle Manufacturing produces cylinders used in internal combustion engines. During June, Frankle’s welding department had the following data: Units in BWIP…………………………………………………………..— Units completed ………………………………………………112,000 Units in EWIP (40% complete)
> During the year, Roberts Company sold equipment with a book value of $140,000 for $190,000 (original purchase cost of $240,000). New equipment was purchased. Roberts provided the following comparative balance sheets: Required: Calculate the investing
> Cannon Company invested $8,000,000 in a new product line. The life cycle of the product is projected to be 8 years with the following net income stream: $400,000, $300,000, $700,000, $800,000, $1,100,000, $2,000,000, and $1,100,000. Required: Calculate
> Folsom Advertising, Inc. is considering an investment in a new information system. The new system requires an investment of $1,800,000 and either has (a) even cash flows of $750,000 per year or (b) the following expected annual cash flows: $450,000, $22
> During the last 2 years of operations, Lelkes Company had the following transactions: a. Purchased land for $1,000,000. b. Issued bonds with a 5-year maturity date for $3,000,000. c. Reported a loss of $2,000,000 for the most recent year. d. Bought equip
> Refer to the information for Barnard Manufacturing on the previous page. Total capital employed equaled $1,400,000. Barnard’s actual cost of capital is 12%. Required: Calculate the EVA for Barnard Manufacturing. Data for Exercise 21: Barnard Manufactu
> Refer to the information for Barnard Manufacturing on the previous page. Barnard requires a minimum rate of return of 15%. Required: Calculate (1) average operating assets and (2) residual income. Data for Exercise 20: Barnard Manufacturing earned ope
> Refer to the information provided in Brief Exercises 14-27, 14-28, and 14-29. Required: 1. Prepare a statement of cash flows for Roberts Company for 20X2. 2. What is the relationship between the statement of cash flows and the change in cash calculated
> Roberts Company earned net income of $450,000 in 20X2. Roberts provided the following information: Required: Compute the financing cash flows for the current year. Roberts Company Comparative Balance Sheets At December 31, 20X1 and 20X2 20X1 20X2
> Roberts Company provided the following partial comparative balance sheets and the income statement for 20X2. Required: Compute operating cash flows using the indirect method. Roberts Company Comparative Balance Sheets At December 31, 20X1 and 20X
> On March 1, Friedle Import-Export Company sells merchandise costing 75,000 Mexican pesos. Payment will be made in pesos, on June 1. The exchange rates of pesos for $1 were as follows: March 1 ……………….$1 = 10.9 pesos June 1 ……………………$1 = 11.4 pesos Rou
> Refer to the information for Aztec Inc. on the previous page. Required: Prepare a production report. Data for Exercise 30: Aztec Inc. produces soft drinks. Mixing is the first department, and its output is measured in gallons. Aztec uses the FIFO meth
> During 20X2, Evans Company had the following transactions: a. Cash dividends of $6,000 were paid. b. Equipment was sold for $2,880. It had an original cost of $10,800 and a book value of $5,400. The loss is included in operating expenses. c. Land with a
> Roberts Company provided the following information: Required: 1. Calculate the change in cash. 2. Explain the role of the change in cash flow in the statement of cash flows. Roberts Company Comparative Balance Sheets At December 31, 20X1 and 20X2
> Cassara, Inc., had the following quality costs for the years ended December 31, 20X1 and 20X2: At the end of 20X1, management decided to increase its investment in control costs by 40% for each category’s items, with the expectation t
> Richins Company produces automobile engine parts. The company is examining the possibility of investing in a new production system that will reduce the costs of the current system. The new system will require a cash investment of $11,551,968 and will pro
> During 20X2, Norton Company had the following transactions: a. Cash dividends of $20,000 were paid. b. Equipment was sold for $9,600. It had an original cost of $36,000 and a book value of $18,000. The loss is included in operating expenses. c. Land with
> Refer to the information provided in Brief Exercises 14-19, 14-20, and 14-21. Required: 1. Prepare a statement of cash flows for Swasey for 20X2. 2. What is the relationship between the statement of cash flows and the change in cash calculated in Brief
> On March 1, Friedle Import-Export Company purchased merchandise costing 70,100 Mexican pesos. Payment was due, in pesos, on June 1. The exchange rates of pesos for $1 were as follows: March 1 ……………………….$1 = 10.9 pesos June 1 …………………………..$1 = 11.4 pesos
> Swasey Company earned net income of $1,800,000 in 20X2. Swasey provided the following information: Required: Compute the financing cash flows for the current year. Swasey Company Comparative Balance Sheets At December 31, 20X1 and 20X2 20X1 20X2
> Lisun Company produces a variety of gardening tools and aids. The company is examining the possibility of investing in a new production system that will reduce the costs of the current system. The new system will require a cash investment of $4,607,200 a
> Andresen Company had the following quality costs for the years ended June 30, 20X1 and 20X2: At the end of 20X1, management decided to increase its investment in control costs by 50% for each category’s items, with the expectation tha
> McCourt Company produces small engines for lawnmower producers. The accounts payable department at McCourt has 10 clerks who process and pay supplier invoices. The total cost of their salaries is $500,000. The work distribution for the activities that th
> Uchdorf Company invested $9,000,000 in a new product line. The life cycle of the product is projected to be 7 years with the following net income stream: $360,000, $360,000, $600,000, $1,080,000, $1,200,000, $2,520,000, and $1,444,000. Required: Calcula
> Payson Manufacturing is considering an investment in a new automated manufacturing system. The new system requires an investment of $1,200,000 and either has (a) even cash flows of $300,000 per year or (b) the following expected annual cash flows: $150,0
> Swasey Company provided the following information: Required: 1. Calculate the change in cash. 2. Explain the role of the change in cash in the statement of cash flows. Swasey Company Comparative Balance Sheets At December 31, 20X1 and 20X2 20X1 2
> Willison Company produces stuffed toy animals; one of these is Betty Rabbit. Each rabbit takes 0.2 yard of fabric and 6 ounces of polyfiberfill. Fabric costs $3.50 per yard, and polyfiberfill is $0.05 per ounce. Willison has budgeted production of stuffe
> Allison Manufacturing produces a subassembly used in the production of jet aircraft engines. The assembly is sold to engine manufacturers and aircraft maintenance facilities. Projected sales in units for the coming 5 months follow: January â€
> Bender Automotive Works Inc. manufactures a variety of front-end assemblies for automobiles. A front-end assembly is the unified front of an automobile that includes the headlamps, fender, and surrounding metal/plastic. Bender has two producing departmen
> MedServices Inc. is divided into two operating departments: Laboratory and Tissue Pathology. The company allocates delivery and accounting costs to each operating department. Delivery costs include the costs of a fleet of vans and drivers that drive thro
> At the beginning of the year, Smith Company budgeted overhead of $129,600 as well as 13,500 direct labor hours. During the year, Job K456 was completed with the following information: direct materials cost, $2,750; direct labor cost, $5,355. The average
> Refer to the information for Kepler Company on the previous page. Required: Note: Round all percentages to one decimal place. 1. Express each item in the asset section of the balance sheet as a percentage of total assets for each year. 2. Express each i
> Refer to the information for Alfombra Inc. on the previous page. Required: 1. Prepare a physical flow analysis for the throw rug department for August. 2. Calculate equivalent units of production for the throw rug department for August. 3. Calculate the
> Kolby Company takes 36,000 hours to produce 144,000 units of a product. Required: What is the velocity? Cycle time?
> Folsom Company manufactures specialty tools to customer order. There are three producing departments. Departmental information on budgeted overhead and various activity measures for the coming year is as follows: Currently, overhead is applied on the b
> The following selected information is taken from the financial statements of Arnn Company for its most recent year of operations: Beginning balances: Inventory ……………………………………………………………….$200,000 Accounts receivable ……………………………………………………300,000 Ending bala
> The income statement for Mendelin Corporation is as follows: Additional information is as follows: a. Interest expense includes $1,800 of discount amortization. b. The prepaid insurance expense account decreased by $2,000 during the year. c. Wages paya
> Refer to the information for Rosie-Lee Company above. Required: Prepare a statement of cash flows using a worksheet similar to the one shown in Example 14.8 (p. 804). Use the indirect method to prepare the statement. Data for Problem 51: The following
> Refer to the information for Rosie-Lee Company above. Required: 1. Prepare a schedule of operating cash flows using (a) the indirect method and (b) the direct method. 2. Prepare a statement of cash flows using the indirect method. Data for Problem 50:
> Refer to the information for Booth Manufacturing above. Required: Calculate operating cash flows using the direct method. Data for Problem 49: Booth Manufacturing has provided the following financial statements. Other information includes: (a) equi
> Khaling Company sold 19,000 units last year at $18.00 each. Variable cost was $14.60, and total fixed cost was $68,000. Required: 1. Prepare an income statement for Khaling for last year. 2. Calculate the break-even point in units. 3. Calculate the unit
> Whalen Company had net sales of $125,500,250,000. Whalen had the following balances: Required: Note: Round answers to two decimal places. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate th
> Montalcino Company had net sales of $54,000,000. Montalcino had the following balances: Required: Note: Round answers to one decimal place. 1. Calculate the average accounts receivable. 2. Calculate the accounts receivable turnover ratio. 3. Calculate
