Question: Using the information from E3-19, reconcile

> Prospector Company makes three types of long-burning scented candles. The models vary in terms of size and type of materials (fragrance, decorations, etc.). Unit information for Prospector follows: Prospector has determined that it can sell a limited num

> Barb Bach recently graduated from Coral College’s accounting program. She has been hired as an analyst by Rainier Ski Co. and one of her first assigned tasks was to evaluate the Colorado division of Rainier Ski Co. This division has bee

> Greenview currently manufactures one model of a plain, unfinished oak bookcase. The company is considering changing this product by adding a long-wearing finish and more appealing trim. A summary of the expected costs and revenues for Greenviewâ&#1

> Greenview Corp. is considering eliminating a product from its line of outdoor tables. Two products, the Sunrise and Noche tables, have impressive sales. However, sales for the Blanco model have been dismal. Information related to Greenviewâ€&#

> Mesa Company produces wooden rocking chairs. The company has two production departments, Cutting and Assembly. The wood is cut and sanded in Cutting and then transferred to Assembly to be assembled and painted. From Assembly, the chairs are transferred t

> Greenview Corp. is considering the possibility of outsourcing the production of the upholstered chair pads included with some of its wooden chairs. The company has received a bid from a company in China to produce 1,000 units per year for $9 each. Greenv

> Greenview Corp. makes several varieties of wooden furniture. It has been approached about producing a special order for Wilderness rocking chairs. A local senior citizens group would use the special-order chairs in a newly remodeled activity center. The

> Backpacks for Good manufactures and sells backpacks for educational and recreational uses. The company locates its manufacturing facilities in areas with high unemployment rates and provides on-site day care and education for its employeesâ€&#

> Sapphire Company produces two models of electric lawnmower. Information about Sapphire’s products is given below: Sapphire’s fixed costs total $104,625. Required: 1. Determine Sapphire’s weighted-aver

> Joan Company produces two backpack models. Information about its products follows Joan’s fixed costs total $51,700. Required: 1. Determine Joan’s weighted-average unit contribution margin and weighted-average contribut

> King Peak Company produces one security door model. A partially complete table of its costs follows: Required: 1. Complete the table. 2. King Peak sells its doors for $200 each. Prepare a contribution margin income statement for each of the three product

> Ivy Kay, Inc., makes one type of doggie sweater that it sells for $25 each. Its variable cost is $12.50 per sweater and its fixed costs total $8,600 per year. Ivy Kay currently has the capacity to produce up to 1,000 sweaters per year, so its relevant ra

> Regina Star delivers flowers for several local flower stores. She charges clients $0.85 per mile driven. Regina has determined that if she drives 1,200 miles in a month, her average operating cost is $0.80 per mile. If she drives 2,000 miles in a month,

> Franklin, Inc., produces one model of seat cover. Partial information for the company follows: Required: 1. Complete the table. 2. Calculate Franklin’s contribution margin ratio and its total contribution margin at each sales level indi

> Herb Garden manufactures garden planters for growing fresh herbs to use in cooking. Individuals as well as local restaurants purchase the planters. Recently, the company incurred the following costs: Herb Garden charges $17 for each planter that it sells

> Brite Toothbrushes has gathered the following information to complete its Production Report for the month of April. Required: Using the provided information, complete the report.

> Dirk Inc. produces and sells model cars. It incurs the costs listed in the following table. Required: Use an X to categorize each of the following costs. You may have more than one X for each item.

> Refer to the information for Vestibule in PB5–4. Additional information for Vestibule’s most recent year of operations follows: Required: 1. Without any calculations, explain whether Vestibule’s profi

> Vestibule produces one model of ski vest. Partial information for the company follows: Required: 1. Complete Vestibule’s cost data table. 2. Calculate Vestibule’s contribution margin ratio and its total contribution ma

> Refer to your solutions for Sigrid’s Custom Graphics in PB5–2. Required: 1. Consider the pattern of the company’s activity and costs throughout the year. Would you consider this to be a seasonal busin

> Sigrid’s Custom Graphics specializes in creating and painting store window advertisement displays. The majority of its business comes from local retailers and fast-food restaurants. A portion of Sigrid’s operating info

> Odie Company manufactures a popular brand of cat repellant known as Cat-B-Gone, which it sells in gallon-size bottles with a spray attachment. The majority of Odie’s business comes from orders placed by homeowners who are trying to keep

> In recent years, the managerial concepts of target costing, just-in-time inventory systems, and lean-manufacturing processes have received considerable attention from manufacturing companies. Increased competition in the marketplace and growing pressure

> Summit Company makes two models of snowboards, the Junior and the Expert. Its basic production information follows: Summit has monthly overhead of $484,746, which is divided into the following cost pools: The company has also compiled the following infor

> Berry Good Company makes two types of energy drinks, cherry and strawberry. Basic production information follows: Berry Good has monthly overhead of $159,670, which is divided into the following cost pools: The company has also compiled the following inf

> Paradiso Corp. is the manufacturer of food processors. It currently has two product lines, the Basic and the Industrial. Paradiso has $85,170 in total overhead. The company has identified the following information about its overhead activity cost pools a

> Homerun Corp., which manufactures baseball bats, currently has two product lines, the Traditional and the Acrylic, and $47,125 in total overhead. The company has identified the following information about its activity cost pools and the two product lines

> Fincher Farms uses process costing to account for the production of canned vegetables. Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. Beginning work in process is 30 percent

> Refer to the information in PB3-5 for Ivy Glen Inc. Required: Complete all requirements for PB3-5 using the FIFO method. Data from PB3-5: Ivy Glen Inc. makes one model of lighted baby toy. All direct materials are added at the beginning of the manufactu

> Ivy Glen Inc. makes one model of lighted baby toy. All direct materials are added at the beginning of the manufacturing process. Information for the month of September follows: Required: 1. Using the weighted-average method of process costing, complete e

> Refer to the information in PB3-3 for Crismon Company. Required: Complete all requirements for PB3-3 using the FIFO method. Data from PB3-3: Crismon Company makes camping tents in a single production department. All direct materials are added at the beg

> Crismon Company makes camping tents in a single production department. All direct materials are added at the beginning of the manufacturing process. Information for the month of July follows: Required: 1. Using the weighted-average method of process cost

> Refer to the information about Mallory Inc. in PB3-1. Required: Complete all requirements for PB3-1 using the FIFO method. Data from PB3-1: Mallory Inc. produces a popular brand of energy drink. It adds all materials at the beginning of the manufacturin

> Mallory Inc. produces a popular brand of energy drink. It adds all materials at the beginning of the manufacturing process. The company has provided the following information: Required: 1. Using the weighted-average method of process costing, complete ea

> Refer to the information in PB2–3 for Knight Company. Required: 1. Prepare a journal entry showing the transfer of Job 102 into Finished Goods Inventory upon its completion. 2. Prepare the journal entries to recognize the sales revenue

> Knight Company uses a job order cost system with overhead applied to products on the basis of machine hours. For the upcoming year, Knight estimated its total manufacturing overhead cost at $450,000 and its total machine hours at 150,000. During the firs

> Refer to the information presented in PB2–1 for Coda Industries. Required: Prepare all of Coda’s necessary journal entries for the month of November. Data from PB2-1: Coda Industries uses a job order cost system. On N

> Coda Industries uses a job order cost system. On November 1, the company had the following balance in the accounts: The following transactions occurred during November: a. Purchased materials on account at a cost of $270,500. b. Requisitioned materials a

> Place the following steps required to prepare a process costing production report into their correct order. List separately any step that should not be included in the process. 1. Reconcile the total cost of work in process inventory. 2. Apply manufactur

> Carlton Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on the basis of direct labor dollars. At the beginning of the most recent period, the company estimated its total direct labor cost to be $42,000 a

> Timberland Company is trying to decide on an allocation base to use to assign manufacturing overhead to jobs. The company has always used direct labor hours to assign manufacturing overhead to products, but it is trying to decide whether it should use a

> The following information was obtained from the records of Martinez Corporation during 2018. 1. Manufacturing overhead was applied at a rate of 175 percent of direct labor dollars. 2. Beginning value of inventory follows: a. Beginning Work in Process Inv

> Hamilton Custom Cabinet Company uses a job order cost system with overhead applied based on direct labor cost. Inventory balances at the beginning of 2018 follow: The following transactions occurred during January: a. Purchased materials on account for $

> Assume that Maria Cottonwood has decided to begin production of her fire extinguisher. Her company is Blaze Be Gone, whose costs for last month follow. Required: 1. Identify each of the preceding costs as either a product or a period cost. If the cost is

> When some people think about inventory theft, they imagine a shoplifter running out of a store with goods stuffed inside a jacket or bag. But that’s not what the managers at the Famous Footwear store on Chicago’s Madison Street were dealing with. Their o

> You are one of three partners who own and operate Mary’s Maid Service. The company has been operating for seven years. One of the other partners has always prepared the company’s annual financial statements. Recently, you proposed that the statements be

> Your friend, Suzie Whitson, has designed a new type of outdoor toy that helps children learn basic concepts such as colors, numbers, and shapes. Suzie’s product will target two groups: day care centers in warm climates and home school programs. Suzie has

> You have been asked to take part in an upcoming Young Professionals meeting in your area. The program planned for the evening will cover many aspects of today’s business world. Specifically, you have been asked to explain why there are two types of acc

> You have the opportunity to invest $10,000 in one of two companies from a single industry. The only information you have is shown here. The word high refers to the top third of the industry; average is the middle third; low is the bottom third. Required:

> The financial statements for Royale and Cavalier companies are summarized here: These two companies are in the same business and state but different cities. Each company has been in operation for about 10 years. Both companies received an unqualified aud

> Coke and Pepsi are well-known international brands. Coca-Cola Co. sells more than $42 billion each year while annual sales of PepsiCo products exceed $62 billion. Compare the two companies as a potential investment based on the following ratios as report

> A condensed income statement for Simultech Corporation and a partially completed vertical analysis are presented below. Required: 1. Complete the vertical analysis by computing each line item (a)–(f) as a percentage of sales revenues. R

> A condensed balance sheet for Simultech Corporation and a partially completed vertical analysis are presented below. Required: 1. Complete the vertical analysis by computing each line item (a)–(d) as a percentage of total assets. Round

> Use the data given in PA13–1 for Pinnacle Plus. Required: 1. Compute the gross profit percentage in the current and previous years. Round the percentages to one decimal place. Are the current year results better, or worse, than those fo

> Pinnacle Plus declared and paid a cash dividend of $6,600 in the current year. Its comparative financial statements, prepared at December 31, reported the following summarized information: Required: 1. Complete the two final columns shown beside each ite

> Assume the same facts as PA12–4, except for the income statement and additional data item (a). The new income statement is shown below. Instead of item (a) from PA12–4, assume that the company bought new equipment for

> Refer to PA12–4. Required: Complete requirements 1 and 2 using the direct method. Data from PA12-4: Heads Up Company was started several years ago by two hockey instructors. The company’s comparative balance sheets an

> Refer to the information in PA12–2. Required: Prepare the cash flows from operating activities section of the statement of cash flows using the direct method. Data from PA12-2: The income statement and selected balance sheet informatio

> Heads Up Company was started several years ago by two hockey instructors. The company’s comparative balance sheets and income statement follow, along with additional information. Additional Data: a. Bought new hockey equipment for cash,

> All of the following companies manufacture toasters. The following costs were incurred by each company during September: Required: 1. What is the total conversion cost for Warner Co.? 2. What is the total manufacturing overhead for Painted Trails Co.? 3.

> XS Supply Company is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: Additional Data: a. Bought e

> The income statement and selected balance sheet information for Direct Products Company for the year ended December 31 are presented below. Required: Prepare the cash flows from operating activities section of the statement of cash flows using the indire

> Motif Furniture is an Austin-based furniture company. For each of the following first-quarter transactions, indicate whether operating (O), investing (I), or financing activities (F) are affected and whether the effect is a cash inflow (+) or outflow (−)

> Citco Company is considering investing up to $500,000 in a sustainability-enhancing project. Its managers have narrowed their choices to three potential projects. ∙ Project A would redesign the production process to recycle raw material

> After completing a long and successful career as senior vice president for a large bank, you are preparing for retirement. After visiting the human resources office, you have found that you have several retirement options to choose from: a. An immediate

> Falcon Crest Aces (FCA), Inc., is considering the purchase of a small plane to use in its wing walking demonstrations and aerial tour business. Various information about the proposed investment follows: Required: Help FCA evaluate this project by calcula

> Hearne Company has a number of potential capital investments. Because these projects vary in nature, initial investment, and time horizon, management is finding it difficult to compare them. Project 1: Retooling Manufacturing Facility This project would

> Beacon Company is considering automating its production facility. The initial investment in automation would be $15 million, and the equipment has a useful life of 10 years with a residual value of $500,000. The company will use straight-line depreciatio

> Balloons By Sunset (BBS) is considering the purchase of two new hot air balloons so that it can expand its desert sunset tours. Various information about the proposed investment follows: Required: Help BBS evaluate this project by calculating each of the

> The following table lists several metrics from the Global Reporting Initiatives’ (GRI) sustainability reporting standards and other industry sources. For each metric, classify it based on its impact on the triple bottom line (People, Pr

> Stem Games manufactures playing cards. It has three departments: Printing, Cutting & Collating, and Wrapping. Transferred-in costs are considered materials costs. The following information is available for the Wrapping department for the month of Oct

> Going Places, Inc., manufactures a variety of luggage for airline passengers. The company has several luggage production divisions, including the Suitable Cases Division, as well as a wholly owned subsidiary, It’s Mine, that manufacture

> Grover Corp. is a manufacturing company that produces golf clubs. Birdie is a division of Grover that manufactures putters. Birdie’s putters are used in Grover’s golf club sets and are sold to other golf wholesalers. C

> Wescott Company has three divisions: A, B, and C. The company has a hurdle rate of 8 percent. Selected operating data for the three divisions are as follows: Wescott is considering an expansion project in the upcoming year that will cost $5 million and r

> The following is partial information for Charleston Company’s most recent year of operation. It manufactures lawn mowers and categorizes its operations into two divisions: Bermuda and Midiron. Required: 1. Without making any calculation

> Coolbrook Company has the following information available for the past year: The company’s hurdle rate is 6 percent. Required: 1. Calculate return on investment (ROI) and residual income for each division for last year 2. Recalculate RO

> Refer to the information in PA9–7 for Rip Tide. Required: Prepare the journal entries to record the following for Rip Tide: 1. Direct materials costs and related variances. 2. Direct labor and related variances. Data from PA9-7: Rip Ti

> Rip Tide Company manufactures surfboards. Its standard cost information follows: Rip Tide has the following actual results for the month of June: Required: Calculate the following for Rip Tide: 1. Direct materials price, quantity, and spending variances.

> Refer to the information in PA9–4 for Bullseye Company. Required: Prepare the journal entries to record the following for Bullseye: 1. Direct materials costs and related variances. Assume the company purchases direct materials as needed

> Refer to the information in PA9–4. Required: Calculate the following for Bullseye: 1. Fixed overhead spending variance. 2. Fixed overhead volume variance. 3. Total over- or underapplied fixed manufacturing overhead. Data from PA9-4: Bu

> Bullseye Company manufactures dartboards. Its standard cost information follows: Bullseye has the following actual results for the month of September: Required: Calculate the following for Bullseye: 1. Direct materials price, quantity, and spending varia

> Canyon Company’s Assembly Department has the following production and manufacturing information for February: Units 28,000 in beginning inventory that are 100 percent complete for materials and 20 percent for conversion. 44,600 units fi

> Refer to the information in PA9–1 for Barley Hopp. Required: Prepare the journal entry to record the following for Barley Hopp: 1. Direct materials costs and related variances. Assume the company purchases direct materials as needed and

> Refer to the information for Barley Hopp in PA9–1. Required: Compute the following for Barley Hopp: 1. Fixed overhead spending variance. 2. Fixed overhead volume variance. 3. Total over- or underapplied fixed manufacturing overhead. Da

> Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows: Barley Hopp had the following actual results last year: Required: Calculate the following for Barley Hopp: 1. Direct materials price, quantit

> Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information: ∙ Each T-shirt is expected to sel

> Refer to the information presented in PA8–4 regarding Wesley Power Tools. Required: Prepare the following for the first quarter: 1. Cost of goods sold budget. 2. Selling and administrative expense budget. 3. Budgeted income statement fo

> Wesley Power Tools manufactures a wide variety of tools and accessories. One of its more popular items is a cordless power handisaw. Each handisaw sells for $44. Wesley expects the following unit sales: Wesley’s ending finished goods in

> Iguana, Inc., had $10,800 cash on hand on April 1. Of its sales, 80 percent is in cash. Of the credit sales, 50 percent is collected during the month of the sale, and 50 percent is collected during the month following the sale. Of direct materials purcha

> Refer to the information in PA8–1. Required: Prepare Iguana’s budgeted income statement for quarter 2. Data from PA8-1: Iguana, Inc., manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 li

> Iguana, Inc., manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 linear feet of bamboo, which costs $2.00 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $12.00 per hour. Iguana has

> Old Camp Company manufactures awnings for its own line of tents. The company is currently operating at capacity and has received an offer from one of its suppliers to make the 10,000 awnings it needs for $18 each. Old Camp’s costs to make the awning are

> Vista Vacuum Company has the following production information for the month of March. All materials are added at the beginning of the manufacturing process. Units ∙ Beginning inventory of 6,000 units that are 100 percent complete for materials and 25 per

> Camino Company manufactures designer to-go coffee cups. Each line of coffee cups is endorsed by a high-profile celebrity and designed with special elements selected by the celebrity. During the most recent year, Camino Company had the following operating

> Chino Company manufactures fabric and clothing. Managers can either sell the unfinished fabric to other clothing manufacturers or incur additional conversion costs to create a finished garment. The costs incurred to produce the unfinished fabric are $400

> Blossom, Inc., is a small company that manufactures three versions of patio tables. Unit information for its products follows: Blossom has determined that it can sell a limited number of each table in the upcoming year. Expected demand for each model fol

> Ben Blum recently graduated from Moonshadow University’s accounting program. He has been hired as an analyst by Primrose Tire Company and one of his first assigned tasks was to evaluate the North East division of Primrose. This division

> The Rosa model of Mohave Corp. is currently manufactured as a very plain umbrella with no decoration. The company is considering changing this product to a much more decorative model by adding a silk-screened design and embellishments. A summary of the e

> Mohave Corp. is considering eliminating a product from its Sand Trap line of beach umbrellas. This collection is aimed at people who spend time on the beach or have an outdoor patio near the beach. Two products, the Indigo and Verde umbrellas, have impre

> Mohave Corp. is considering outsourcing production of the umbrella tote bag included with some of its products. The company has received a bid from a supplier in Vietnam to produce 8,000 units per year for $7.50 each. Mohave has the following information