All Related Questions of Managerial Accounting

Q: Refer to the data for Hielta Oy in Exercise 4–7

Refer to the data for Hielta Oy in Exercise 4–7. Assume that the company uses the FIFO method in its process costing system. In Exercise 4–7 Hielta Oy, a Finnish c...

Q: Jarvene Corporation uses the FIFO method in its process costing system.

Jarvene Corporation uses the FIFO method in its process costing system. The following data are for the most recent month of operations in one of the company’s processing departments:...

Q: Refer to the data for Alaskan Fisheries, Inc., in Exercise

Refer to the data for Alaskan Fisheries, Inc., in Exercise 4–12. In Exercise 4–12 Alaskan Fisheries, Inc., processes salmon for various distributors. Two departmen...

Q: Refer to the data for the Blending Department of Sunspot Beverages,

Refer to the data for the Blending Department of Sunspot Beverages, Ltd., in Problem 4–13A. Assume that the company uses the FIFO method rather than the weighted-average method in it...

Q: There is often more than one way to improve a performance measure

There is often more than one way to improve a performance measure. Unfortunately, some of the actions taken by managers to make their performance look better may actually harm the organization. For ex...

Q: Selzik Company makes super-premium cake mixes that go through two

Selzik Company makes super-premium cake mixes that go through two processing departments, Blending and Packaging. The following activity was recorded in the Blending Department during July: Production...

Q: A number of terms that relate to organizations, the work of

A number of terms that relate to organizations, the work of management, and the role of managerial accounting are listed below: Budgets Directing and motivating Financial accounting Performance repor...

Q: The PC Works assembles custom computers from components supplied by various manufacturers

The PC Works assembles custom computers from components supplied by various manufacturers. The company is very small and its assembly shop and retail sales store are housed in a single facility in a R...

Q: Suppose that you have been given a summer job as an intern

Suppose that you have been given a summer job as an intern at Issac Aircams, a company that manufactures sophisticated spy cameras for remote-controlled military reconnaissance aircraft. The company,...

Q: Lompac Products manufactures a variety of products in its factory. Data

Lompac Products manufactures a variety of products in its factory. Data for the most recent month’s operations appear below: Beginning raw materials inventory ............... $60,000 Purchases of raw...

Q: Lompac Products manufactures a variety of products in its factory. Data

Lompac Products manufactures a variety of products in its factory. Data for the most recent month’s operations appear below: Beginning raw materials inventory ................ $60,000 Purchases of raw...

Q: Below are costs and measures of activity in a variety of organizations

Below are costs and measures of activity in a variety of organizations. Required: Classify each cost as variable or fixed with respect to the indicated measure of activity by placing an X in the ap...

Q: Northwest Hospital is a full-service hospital that provides everything from

Northwest Hospital is a full-service hospital that provides everything from major surgery and emergency room care to outpatient clinics. Required: For each cost incurred at Northwest Hospital, indi...

Q: Northwest Hospital is a full-service hospital that provides everything from

Northwest Hospital is a full-service hospital that provides everything from major surgery and emergency room care to outpatient clinics. The hospital’s Radiology Department is consid...

Q: Following are a number of cost terms introduced in the chapter:

Following are a number of cost terms introduced in the chapter: Variable cost Fixed cost Prime cost Opportunity cost Product cost Sunk cost Conversion cost Period cost Required: Choose the term or t...

Q: What are the arguments in favor of treating fixed manufacturing overhead costs

What are the arguments in favor of treating fixed manufacturing overhead costs as product costs?

Q: Below are listed various costs that are found in organizations.

Below are listed various costs that are found in organizations. 1. Hamburger buns in a Wendy’s outlet. 2. Advertising by a dental office. 3. Apples processed and canned by Del Mon...

Q: The following cost and inventory data are taken from the accounting records

The following cost and inventory data are taken from the accounting records of Mason Company for the year just completed: Costs incurred: Direct labor cost ........................................ $70...

Q: The Devon Motor Company produces motorcycles. During April, the company

The Devon Motor Company produces motorcycles. During April, the company purchased 8,000 batteries at a cost of $10 per battery. Devon withdrew 7,600 batteries from the storeroom during the month. Of t...

Q: Listed below are costs found in various organizations. 1.

Listed below are costs found in various organizations. 1. Property taxes, factory. 2. Boxes used for packaging detergent produced by the company. 3. Salespersons’ commissions. 4....

Q: Wollogong Group Ltd. of New South Wales, Australia, acquired

Wollogong Group Ltd. of New South Wales, Australia, acquired its factory building about 10 years ago. For several years, the company has rented out a small annex attached to the rear of the building....

Q: Various costs associated with the operation of factories are given below:

Various costs associated with the operation of factories are given below: 1. Electricity to run production equipment. 2. Rent on a factory building. 3. Cloth used to make drapes. 4. Production sup...

Q: Swift Company was organized on March 1 of the current year.

Swift Company was organized on March 1 of the current year. After five months of start-up losses, management had expected to earn a profit during August. Management was disappointed, however, when the...

Q: You have just been hired by Ogden Company to fill a new

You have just been hired by Ogden Company to fill a new position that was created in response to rapid growth in sales. It is your responsibility to coordinate shipments of finished goods from the fac...

Q: Various cost and sales data for Meriwell Company for the just completed

Various cost and sales data for Meriwell Company for the just completed year appear in the worksheet below: Of the $105,000 of manufacturing overhead, $15,000 is variable and $90,000 is fixed. Requ...

Q: The Dorilane Company specializes in producing a set of wood patio furniture

The Dorilane Company specializes in producing a set of wood patio furniture consisting of a table and four chairs. The set enjoys great popularity, and the company has ample orders to keep production...

Q: What are the arguments in favor of treating fixed manufacturing overhead costs

What are the arguments in favor of treating fixed manufacturing overhead costs as period costs?

Q: Staci Valek began dabbling in pottery several years ago as a hobby

Staci Valek began dabbling in pottery several years ago as a hobby. Her work is quite creative, and it has been so popular with friends and others that she has decided to quit her job with an aerospac...

Q: Selected account balances for the year ended December 31 are provided below

Selected account balances for the year ended December 31 are provided below for Superior Company: Selling and administrative salaries ................ $110,000 Purchases of raw materials ................

Q: Supply the missing data in the following cases. Each case is

Supply the missing data in the following cases. Each case is independent of the others.

Q: Refer to the data for Hanna Company in Brief Exercise 13–

Refer to the data for Hanna Company in Brief Exercise 13–2. The company’s income statement for the year appears below: Sales ..........................................

Q: Refer to the data for Carmono Company in Exercise 13–5

Refer to the data for Carmono Company in Exercise 13–5. In Exercise 13–5 Comparative financial statement data for Carmono Company follow: For 2009, the company r...

Q: Wiley Company’s income statement for Year 2 follows: Sales ...........................................................

Wiley Company’s income statement for Year 2 follows: Sales ........................................................... $150,000 Cost of goods sold ......................................

Q: Refer to the data for Pavolik Company in Exercise 13–6

Refer to the data for Pavolik Company in Exercise 13–6. In Exercise 13–6 The following changes took place during the year in Pavolik Company’s ba...

Q: Refer to the financial statement data for Weaver Company in Problem 13

Refer to the financial statement data for Weaver Company in Problem 13–8A. In Problem 13–8A Comparative financial statements for Weaver Company follow: During 20...

Q: Refer to the financial statement data for Joyner Company in Problem 13

Refer to the financial statement data for Joyner Company in Problem 13–9A. Sam Conway, president of the company, considers $15,000 to be the minimum cash balance for operating purpos...

Q: Refer to the financial statements for Rusco Products in Problem 13–

Refer to the financial statements for Rusco Products in Problem 13–11A. Because the Cash account decreased so dramatically during 2009, the company’s executive comm...

Q: If the units produced exceed unit sales, which method would you

If the units produced exceed unit sales, which method would you expect to show the higher net operating income, variable costing or absorption costing? Why?

Q: Refer to the data for Hanna Corporation in Brief Exercise 13–

Refer to the data for Hanna Corporation in Brief Exercise 13–2. In Brief Exercise 13–2 For the just completed year, Hanna Company had a net income of $35,000. Bala...

Q: Sigma Corporation applies overhead cost to jobs on the basis of direct

Sigma Corporation applies overhead cost to jobs on the basis of direct labor cost. Job V, which was started and completed during the current period, shows charges of $5,000 for direct materials, $8,00...

Q: Estimated cost and operating data for three companies for the upcoming year

Estimated cost and operating data for three companies for the upcoming year follow: Predetermined overhead rates are computed using the following allocation bases in the three companies: ___________...

Q: The following information is taken from the accounts of Latta Company.

The following information is taken from the accounts of Latta Company. The entries in the T-accounts are summaries of the transactions that affected those accounts during the year The overhead that...

Q: Harwood Company uses a job-order costing system. Overhead costs

Harwood Company uses a job-order costing system. Overhead costs are applied to jobs on the basis of machine-hours. At the beginning of the year, management estimated that the company would incur $192,...

Q: A company assigns overhead cost to completed jobs on the basis of

A company assigns overhead cost to completed jobs on the basis of 125% of direct labor cost. The job cost sheet for Job 313 shows that $10,000 in direct materials has been used on the job and that $12...

Q: The Polaris Company uses a job-order costing system. The

The Polaris Company uses a job-order costing system. The following data relate to October, the first month of the company’s fiscal year. a. Raw materials purchased on account, $210,000. b. Raw materia...

Q: Leeds Architectural Consultants began operations on January 2. The following activity

Leeds Architectural Consultants began operations on January 2. The following activity was recorded in the company’s Work in Process account for the first month of operations: Leeds...

Q: Dillon Products manufactures various machined parts to customer specifications. The company

Dillon Products manufactures various machined parts to customer specifications. The company uses a job-order costing system and applies overhead cost to jobs on the basis of machine-hours. At the begi...

Q: The following cost data relate to the manufacturing activities of Chang Company

The following cost data relate to the manufacturing activities of Chang Company during the just completed year: Manufacturing overhead costs incurred: Indirect materials .................................

Q: Under absorption costing, how is it possible to increase net operating

Under absorption costing, how is it possible to increase net operating income without increasing sales?

Q: Kingsport Containers, Ltd, of the Bahamas experiences wide variation in

Kingsport Containers, Ltd, of the Bahamas experiences wide variation in demand for the 200-liter steel drums it fabricates. The leak proof, rustproof steel drums have a variety of uses from storing li...

Q: Vista Landscaping uses a job-order costing system to track the

Vista Landscaping uses a job-order costing system to track the costs of its landscaping projects. The company provides garden design and installation services for its clients. The table below provides...

Q: White Company has two departments, Cutting and Finishing. The company

White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its ra...

Q: Gold Nest Company of Guandong, China, is a family-

Gold Nest Company of Guandong, China, is a family-owned enterprise that makes birdcages for the South China market. A popular pastime among older Chinese men is to take their pet birds on daily excurs...

Q: Almeda Products, Inc., uses a job-order costing system

Almeda Products, Inc., uses a job-order costing system. The company’s inventory balances on April 1, the start of its fiscal year, were as follows: Raw materials .........................................

Q: Gitano Products operates a job-order costing system and applies overhead

Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis of direct materials used in production (not on the basis of raw materials purchased). All materials a...

Q: High Desert Potteryworks makes a variety of pottery products that it sells

High Desert Potteryworks makes a variety of pottery products that it sells to retailers such as Home Depot. The company uses a job-order costing system in which predetermined overhead rates are used t...

Q: Selected T-accounts of Moore Company are given below for the

Selected T-accounts of Moore Company are given below for the just completed year: Required: 1. What was the cost of raw materials put into production during the year? 2. How much of the materials in...

Q: Which method of determining product costs, job-order costing or

Which method of determining product costs, job-order costing or process costing, would be more appropriate in each of the following situations? a. An Elmer’s glue factory. b. A textbook publisher such...

Q: Cycle Gear Corporation has incurred the following costs on job number W456

Cycle Gear Corporation has incurred the following costs on job number W456, an order for 20 special sprockets to be delivered at the end of next month. Direct materials: On April 10, requisition numbe...

Q: What is a budget? What is budgetary control?

What is a budget? What is budgetary control?

Q: Harris Fabrics computes its predetermined overhead rate annually on the basis of

Harris Fabrics computes its predetermined overhead rate annually on the basis of direct labor hours. At the beginning of the year it estimated that its total manufacturing overhead would be $134,000 a...

Q: Larned Corporation recorded the following transactions for the just completed month.

Larned Corporation recorded the following transactions for the just completed month. a. $80,000 in raw materials were purchased on account. b. $71,000 in raw materials were requisitioned for use in pr...

Q: Luthan Company uses a predetermined overhead rate of $23.40

Luthan Company uses a predetermined overhead rate of $23.40 per direct labor-hour. This predetermined rate was based on 11,000 estimated direct labor-hours and $257,400 of estimated total manufacturin...

Q: Primare Corporation has provided the following data concerning last month’s manufacturing operations

Primare Corporation has provided the following data concerning last month’s manufacturing operations. Required: 1. Prepare a schedule of cost of goods manufactured for the month. 2...

Q: Jurvin Enterprises recorded the following transactions for the just completed month.

Jurvin Enterprises recorded the following transactions for the just completed month. The company had no beginning inventories. a. $94,000 in raw materials were purchased for cash. b. $89,000 in raw ma...

Q: Osborn Manufacturing uses a predetermined overhead rate of $18.20

Osborn Manufacturing uses a predetermined overhead rate of $18.20 per direct labor-hour. This predetermined rate was based on 12,000 estimated direct labor-hours and $218,400 of estimated total manufa...

Q: The following activities occur at Greenwich Corporation, a company that manufactures

The following activities occur at Greenwich Corporation, a company that manufactures a variety of products. a. Receive raw materials from suppliers. b. Manage parts inventories. c. Do rough milling wo...

Q: The following activities are carried out in Greenberry Company, a manufacturer

The following activities are carried out in Greenberry Company, a manufacturer of consumer goods. a. Direct labor workers assemble a product. b. Engineers design a new product. c. A machine is set up...

Q: Juneau Company manufactures a variety of products in a single facility.

Juneau Company manufactures a variety of products in a single facility. Consultants hired by the company to do an activity-based costing analysis have identified the following activities carried out i...

Q: For many years, Zapro Company manufactured a single product called a

For many years, Zapro Company manufactured a single product called a mono-relay. Then three years ago, the company automated a portion of its plant and at the same time introduced a second product cal...

Q: “The principal purpose of the cash budget is to see how

“The principal purpose of the cash budget is to see how much cash the company will have in the bank at the end of the year.” Do you agree? Explain.

Q: Jordan’s Lakeside is a popular restaurant located on Lake Washington in Seattle

Jordan’s Lakeside is a popular restaurant located on Lake Washington in Seattle. The owner of the restaurant has been trying to better understand costs at the restaurant and has hire...

Q: Siegel Corporation manufactures a product that is available in both a deluxe

Siegel Corporation manufactures a product that is available in both a deluxe and a regular model. The company has made the regular model for years; the deluxe model was introduced several years ago to...

Q: Munoz Corporation uses activity-based costing to determine product costs for

Munoz Corporation uses activity-based costing to determine product costs for external financial reports. At the beginning of the year, management made the following estimates of cost and activity in t...

Q: Aucton Corporation is a manufacturing company that uses activity-based costing

Aucton Corporation is a manufacturing company that uses activity-based costing for its external financial reports. The company’s activity cost pools and associated data for the comin...

Q: Hunter Corporation uses activity-based costing to determine product costs for

Hunter Corporation uses activity-based costing to determine product costs for external financial reports. At the beginning of the year, management made the following estimates of cost and activity in...

Q: Ellix Company manufactures two models of ultra-high fidelity speakers,

Ellix Company manufactures two models of ultra-high fidelity speakers, the X200 model and the X99 model. Data regarding the two products follow: Additional information about the company follows: a....

Q: Kramer Corporation is a diversified manufacturer of consumer goods. The company’s

Kramer Corporation is a diversified manufacturer of consumer goods. The company’s activity based costing system has the following seven activity cost pools: Required: 1. Compute th...

Q: Klumper Corporation is a diversified manufacturer of industrial goods. The company’s

Klumper Corporation is a diversified manufacturer of industrial goods. The company’s activity-based costing system contains the following six activity cost pools and activity rates:...

Q: Midwest Industrial Products Corporation makes two products, Product H and Product

Midwest Industrial Products Corporation makes two products, Product H and Product L. Product H is expected to sell 50,000 units next year and Product L is expected to sell 10,000 units. A unit of eith...

Q: Larker Corporation implemented activity-based costing several years ago and uses

Larker Corporation implemented activity-based costing several years ago and uses it for its external financial reports. The company has four activity cost pools, which are listed below. Activity Cost...

Q: What is underapplied overhead? Overapplied overhead? What disposition is made

What is underapplied overhead? Overapplied overhead? What disposition is made of these amounts at the end of the period?

Q: Discuss some of the major benefits to be gained from budgeting.

Discuss some of the major benefits to be gained from budgeting.

Q: Sylvan Company uses activity-based costing to determine product costs for

Sylvan Company uses activity-based costing to determine product costs for external financial reports. The company’s partially completed Manufacturing Overhead T-account for the curre...

Q: Refer to the data in Exercise 3–6 for Sylvan Company

Refer to the data in Exercise 3–6 for Sylvan Company. Activities during the year were distributed across the company’s four products as follows: Data in Exercise...

Q: Fogerty Company makes two products, titanium Hubs and Sprockets. Data

Fogerty Company makes two products, titanium Hubs and Sprockets. Data regarding the two products follow: Additional information about the company follows: a. Hubs require $32 in direct materials per...

Q: Harrison Company makes two products and uses a conventional costing system in

Harrison Company makes two products and uses a conventional costing system in which a single plant wide predetermined overhead rate is computed based on direct labor-hours. Data for the two products f...

Q: The following terms pertain to the budgeting process: Benchmarks

The following terms pertain to the budgeting process: Benchmarks Budget Control Motivation Responsibility accounting Bottlenecks Budget committee Imposed from above Planning Self-imposed budget Requi...

Q: The management of Mecca Copy, a photocopying center located on University

The management of Mecca Copy, a photocopying center located on University Avenue, has compiled the following data to use in preparing its budgeted balance sheet for next year: _______________________...

Q: A cash budget, by quarters, is given below for a

A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of at least $5,000 to start each quarter. Required: Fill in the missing amo...

Q: The marketing department of Gaeber Industries has submitted the following sales forecast

The marketing department of Gaeber Industries has submitted the following sales forecast for the upcoming fiscal year: The company expects to start the first quarter with 1,600 units in finished goo...

Q: The marketing department of Jessi Corporation has submitted the following sales forecast

The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account): The selling price of the company’s...

Q: The production department of Hareston Company has submitted the following forecast of

The production department of Hareston Company has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: In addition, the beginning raw materials inventory...

Q: What is meant by the term responsibility accounting?

What is meant by the term responsibility accounting?

Q: The production department of Raredon Corporation has submitted the following forecast of

The production department of Raredon Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: Each unit requires 0.70 direct labor-hours, and...

Q: Pearl Products Limited of Shenzhen, China, manufactures and distributes toys

Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three cubic centimeters (cc) of solvent H300 are required to manufacture each unit of Supermix,...

Q: You have been asked to prepare a December cash budget for Ashton

You have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise equipment. The following information is available about the company’s operations:...

Q: Minden Company is a wholesale distributor of premium European chocolates. The

Minden Company is a wholesale distributor of premium European chocolates. The company’s balance sheet as of April 30 is given below: Minden Company Balance Sheet April 30 Assets Cash ...................

Q: The president of the retailer Prime Products has just approached the company’s

The president of the retailer Prime Products has just approached the company’s bank with a request for a $30,000, 90-day loan. The purpose of the loan is to assist the company in acq...

Q: Silver Company makes a product that is very popular as a Mother’s

Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak sales occur in May of each year, as shown in the company’s sales budget for t...

Q: Garden Sales, Inc., sells garden supplies. Management is planning

Garden Sales, Inc., sells garden supplies. Management is planning its cash needs for the second quarter. The company usually has to borrow money during this quarter to support peak sales of lawn care...

Q: The following data relate to the operations of Shilow Company, a

The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: Cash .................................................... $8,0...

Q: Westex Products is a wholesale distributor of industrial cleaning products. When

Westex Products is a wholesale distributor of industrial cleaning products. When the treasurer of Westex Products approached the company’s bank late in the current year seeking short...

Q: Milo Company manufactures beach umbrellas. The company is preparing detailed budgets

Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation: a. The Marke...

Q: What is a master budget? Briefly describe its contents.

What is a master budget? Briefly describe its contents.

Q: Hillyard Company, an office supplies specialty store, prepares its master

Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparing the master budget for the first qua...

Q: Down Under Products, Ltd., of Australia has budgeted sales of

Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows: ____________Sales in Units April ................................. 50,000 May...

Q: Three grams of musk oil are required for each bottle of Mink

Three grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a small company in western Siberia. The cost of the musk oil is 150 roubles per kilogram. (Siberia i...

Q: The production manager of Rordan Corporation has submitted the following forecast of

The production manager of Rordan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: Each unit requires 0.35 direct labor-hours, and dir...

Q: The direct labor budget of Yuvwell Corporation for the upcoming fi scal

The direct labor budget of Yuvwell Corporation for the upcoming fi scal year contains the following details concerning budgeted direct labor-hours: The company’s variable manufactu...

Q: The budgeted unit sales of Weller Company for the upcoming fiscal year

The budgeted unit sales of Weller Company for the upcoming fiscal year are provided below: The company’s variable selling and administrative expense per unit is $2.50. Fixed sellin...

Q: Garden Depot is a retailer that is preparing its budget for the

Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows: The company’s beginn...

Q: Gig Harbor Boating is the wholesale distributor of a small recreational catamaran

Gig Harbor Boating is the wholesale distributor of a small recreational catamaran sailboat. Management has prepared the following summary data to use in its annual budgeting process: Budgeted unit sa...

Q: A number of costs are listed below that may be relevant in

A number of costs are listed below that may be relevant in decisions faced by the management of Svahn, AB, a Swedish manufacturer of sailing yachts: Required: Copy the information above onto your an...

Q: Delta Company produces a single product. The cost of producing and

Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company’s normal activity level of 60,000 units per year is: Direct materials ............

Q: Describe the flow of budget data in an organization. Who are

Describe the flow of budget data in an organization. Who are the participants in the budgeting process, and how do they participate?

Q: Bed & Bath, a retailing company, has two departments,

Bed & Bath, a retailing company, has two departments, Hardware and Linens. The company’s most recent monthly contribution format income statement follows: A study indicates tha...

Q: For many years Futura Company has purchased the starters that it installs

For many years Futura Company has purchased the starters that it installs in its standard line of farm tractors. Due to a reduction in output, the company has idle capacity that could be used to produ...

Q: Kristen Lu purchased a used automobile for $8,000 at

Kristen Lu purchased a used automobile for $8,000 at the beginning of last year and incurred the following operating costs: Depreciation ($8,000 ÷ 5 years) ............. $1,600 Insurance ...............

Q: Profits have been decreasing for several years at Pegasus Airlines. In

Profits have been decreasing for several years at Pegasus Airlines. In an effort to improve the company’s performance, consideration is being given to dropping several flights that a...

Q: Jackson County Senior Services is a nonprofit organization devoted to providing essential

Jackson County Senior Services is a nonprofit organization devoted to providing essential services to seniors who live in their own homes within the Jackson County area. Three services are provided fo...

Q: Silven Industries, which manufactures and sells a highly successful line of

Silven Industries, which manufactures and sells a highly successful line of summer lotions and insect repellents, has decided to diversify in order to stabilize sales throughout the year. A natural ar...

Q: Superior Markets, Inc., operates three stores in a large metropolitan

Superior Markets, Inc., operates three stores in a large metropolitan area. A segmented absorption costing income statement for the company for the last quarter is given below: The North Store has c...

Q: The Regal Cycle Company manufactures three types of bicycles—a dirt

The Regal Cycle Company manufactures three types of bicycles—a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Management is...

Q: Andretti Company has a single product called a Dak. The company

Andretti Company has a single product called a Dak. The company normally produces and sells 60,000 Daks each year at a selling price of $32 per unit. The company’s unit costs at this...

Q: “In my opinion, we ought to stop making our own

“In my opinion, we ought to stop making our own drums and accept that outside supplier’s offer,” said Wim Niewindt, managing director of Antilles Refining, N.V., of Aruba. “At a price of 18 florins pe...

Q: What is a self-imposed budget? What are the major

What is a self-imposed budget? What are the major advantages of self-imposed budgets? What caution must be exercised in their use?

Q: Polaski Company manufactures and sells a single product called a Ret.

Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 30,000 Rets per year. Costs associated with this level of production and s...

Q: The Walton Toy Company manufactures a line of dolls and a doll

The Walton Toy Company manufactures a line of dolls and a doll dress sewing kit. Demand for the dolls is increasing, and management requests assistance from you in determining an economical sales and...

Q: Troy Engines, Ltd., manufactures a variety of engines for use

Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An outsi...

Q: Imperial Jewelers is considering a special order for 20 handcrafted gold bracelets

Imperial Jewelers is considering a special order for 20 handcrafted gold bracelets to be given as gifts to members of a wedding party. The normal selling price of a gold bracelet is $189.95 and its un...

Q: Barlow Company manufactures three products: A, B, and C

Barlow Company manufactures three products: A, B, and C. The selling price, variable costs, and contribution margin for one unit of each product follow: The same raw material is used in all three pr...

Q: Han Products manufactures 30,000 units of part S-6

Han Products manufactures 30,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is as follows: Direct materials ...................

Q: Hollings Company sells and delivers office furniture in the Rocky Mountain area

Hollings Company sells and delivers office furniture in the Rocky Mountain area. The costs associated with the acquisition and annual operation of a delivery truck are given below: Insurance ............

Q: Thalassines Kataskeves, S.A., of Greece makes marine equipment

Thalassines Kataskeves, S.A., of Greece makes marine equipment. The company has been experiencing losses on its bilge pump product line for several years. The most recent quarterly contribution format...

Q: Bill has just returned from a duck hunting trip. He has

Bill has just returned from a duck hunting trip. He has brought home eight ducks. Bill’s friend, John, disapproves of duck hunting, and to discourage Bill from further hunting, John has presented him...

Q: : Below are transactions that took place in Placid Company during the

Below are transactions that took place in Placid Company during the past year: a. Equipment was purchased. b. A cash dividend was declared and paid. c. Accounts receivable decreased. d. Short-term inv...

Q: How does opportunity cost enter into the make or buy decision?

How does opportunity cost enter into the make or buy decision?

Q: “See, I told you things would work out,” said

“See, I told you things would work out,” said Barry Kresmier, president of Lomax Company. “We expanded sales from $1.6 million to $2.0 million in...

Q: Mary Walker, president of Rusco Products, considers $14,

Mary Walker, president of Rusco Products, considers $14,000 to be the minimum cash balance for operating purposes. As can be seen from the following statements, only $8,000 in cash was available at th...

Q: For the just completed year, Hanna Company had a net income

For the just completed year, Hanna Company had a net income of $35,000. Balances in the company’s current asset and current liability accounts at the beginning and end of the year we...

Q: Apex Company prepared the statement of cash flows for the current year

Apex Company prepared the statement of cash flows for the current year that is shown below: Required: Compute Apex Company’s free cash flow for the current year.

Q: Changes in various accounts and gains and losses on the sale of

Changes in various accounts and gains and losses on the sale of assets during the year for Argon Company are given below: Item ______________________________Amount Accounts receivable ..................

Q: Comparative financial statement data for Carmono Company follow: /

Comparative financial statement data for Carmono Company follow: For 2009, the company reported net income as follows: Sales ........................................................ $275 Cost of goo...

Q: The following changes took place during the year in Pavolik Company’s balance

The following changes took place during the year in Pavolik Company’s balance sheet accounts: Long-term investments that had cost the company $6 were sold during the year for $16,...

Q: Below are a number of transactions that took place in Seneca Company

Below are a number of transactions that took place in Seneca Company during the past year: a. Common stock was sold for cash. b. Interest was paid on a note, decreasing Interest Payable. c. Bonds were...

Q: Comparative financial statements for Weaver Company follow: /

Comparative financial statements for Weaver Company follow: During 2009, the company sold some equipment for $20 that had cost $40 and on which there was accumulated depreciation of $16. In addition...

Q: Balance sheet accounts for Joyner Company contained the following amounts at the

Balance sheet accounts for Joyner Company contained the following amounts at the end of Years 1 and 2: The company’s income statement for Year 2 follows: Sales .......................

Q: Give at least four examples of possible constraints.

Give at least four examples of possible constraints.

Q: Visic Corporation, a manufacturing company, produces a single product.

Visic Corporation, a manufacturing company, produces a single product. The following information has been taken from the company’s production, sales, and cost records for the just co...

Q: Refer to the data for Provost Industries in Analytical Thinking in Chapter

Refer to the data for Provost Industries in Analytical Thinking in Chapter 4. Assume that the company uses the FIFO method in its process costing system. In Analytical Thinking in Chapter 4 “I think...

Q: Maria Chavez owns a catering company that serves food and beverages at

Maria Chavez owns a catering company that serves food and beverages at parties and business functions. Chavez’s business is seasonal, with a heavy schedule during the summer months a...

Q: Stacy Cummins, the newly hired controller at Merced Home Products,

Stacy Cummins, the newly hired controller at Merced Home Products, Inc., was disturbed by what she had discovered about the standard costs at the Home Security Division. In looking over the past sever...

Q: Norton Company, a manufacturer of infant furniture and carriages, is

Norton Company, a manufacturer of infant furniture and carriages, is in the initial stages of preparing the annual budget for next year. Scott Ford has recently joined Norton’s accounting staff and is...

Q: Haley Romeros had just been appointed vice president of the Rocky Mountain

Haley Romeros had just been appointed vice president of the Rocky Mountain Region of the Bank Services Corporation (BSC). The company provides check processing services for small banks. The banks send...

Q: Terri Ronsin had recently been transferred to the Home Security Systems Division

Terri Ronsin had recently been transferred to the Home Security Systems Division of National Home Products. Shortly after taking over her new position as divisional controller, she was asked to develo...

Q: Kelvin Aerospace, Inc., manufactures parts such as rudder hinges for

Kelvin Aerospace, Inc., manufactures parts such as rudder hinges for the aerospace industry. The company uses a job-order costing system with a predetermined plantwide overhead rate based on direct la...

Q: Angora Wraps of Pendleton, Oregon, makes fine sweaters out of

Angora Wraps of Pendleton, Oregon, makes fine sweaters out of pure angora wool. The business is seasonal, with the largest demand during the fall, the winter, and Christmas holidays. The company must...

Q: In the late 1980s and early 1990s, public universities found that

In the late 1980s and early 1990s, public universities found that they were no longer immune to the financial stress faced by their private sister institutions and corporate America. Budget cuts were...

Q: Airlines sometimes offer reduced rates during certain times of the week to

Airlines sometimes offer reduced rates during certain times of the week to members of a businessperson’s family if they accompany him or her on trips. How does the concept of relevant costs enter into...

Q: Bronson Company manufactures a variety of ballpoint pens. The company has

Bronson Company manufactures a variety of ballpoint pens. The company has just received an offer from an outside supplier to provide the ink cartridge for the company’s Zippo pen line, at a price of $...

Q: Use an online yellow pages directory to find a company in your

Use an online yellow pages directory to find a company in your area that has a website on which it has an annual report, including a statement of cash flows. Make an appointment with the controller or...

Q: M. K. Gallant is president of Kranbrack Corporation, a

M. K. Gallant is president of Kranbrack Corporation, a company whose stock is traded on a national exchange. In a meeting with investment analysts at the beginning of the year, Gallant had predicted t...

Q: Hector P. Wastrel, a careless employee, left some combustible

Hector P. Wastrel, a careless employee, left some combustible materials near an open flame in Salter Company’s plant. The resulting explosion and fire destroyed the entire plant and administrative off...

Q: Assume that your team is going to form a company that will

Assume that your team is going to form a company that will manufacture chocolate chip cookies. The team is responsible for preparing a list of all product components and costs necessary to make this p...

Q: Roller, Ltd., of Melbourne, Australia, is the exclusive

Roller, Ltd., of Melbourne, Australia, is the exclusive distributor in Australia and the South Pacific of a popular brand of in-line skates manufactured in Mexico. The company is in the process of put...

Q: After a dispute concerning wages, Orville Arson tossed an incendiary device

After a dispute concerning wages, Orville Arson tossed an incendiary device into the Sparkle Company’s record vault. Within moments, only a few charred fragments were readable from t...

Q: Terry Travers is the manufacturing supervisor of Aurora Manufacturing Company, which

Terry Travers is the manufacturing supervisor of Aurora Manufacturing Company, which produces a variety of plastic products. Some of these products are standard items that are listed in the company’s...

Q: TufStuff, Inc., sells a wide range of drums, bins

TufStuff, Inc., sells a wide range of drums, bins, boxes, and other containers that are used in the chemical industry. One of the company’s products is a heavy-duty corrosion-resista...

Q: The questions in this problem are based on Blue Nile, Inc

The questions in this problem are based on Blue Nile, Inc. To answer the questions, you will need to download Blue Nile’s 2004 Form 10-K at www.sec.gov/edgar/searchedgar/companysearc...

Q: Define the following terms: incremental cost, opportunity cost, and

Define the following terms: incremental cost, opportunity cost, and sunk cost.

Q: Understanding the nature of fixed and variable costs is extremely important to

Understanding the nature of fixed and variable costs is extremely important to managers. This knowledgeis used in planning, making strategic and tactical decisions, evaluating performance, and control...

Q: Haglund Department Store is located in the downtown area of a small

Haglund Department Store is located in the downtown area of a small city. While the store had been profitable for many years, it is facing increasing competition from large national chains that have s...

Q: You have just been hired as a new management trainee by Earrings

You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company h...

Q: The questions in this exercise are based on Toll Brothers, Inc

The questions in this exercise are based on Toll Brothers, Inc., one of the largest home builders in the United States. To answer the questions, you will need to download Toll Brothers’ 2004 annual re...

Q: The questions in this exercise give you an appreciation for the complexity

The questions in this exercise give you an appreciation for the complexity of budgeting in a large multinational corporation. To answer the questions, you will need to download the Procter & Gamble (P...

Q: The questions in this exercise are based on Netflix, Inc.

The questions in this exercise are based on Netflix, Inc. To answer the questions you will need to download the Netflix Form 10-K for the year ended December 31, 2005, at www.sec.gov/edgar/searchedgar...

Q: Why aren’t actual manufacturing overhead costs traced to jobs just as direct

Why aren’t actual manufacturing overhead costs traced to jobs just as direct materials and direct labor costs are traced to jobs?

Q: When would job-order costing be used instead of process costing

When would job-order costing be used instead of process costing?

Q: Are selling and administrative expenses treated as product costs or as period

Are selling and administrative expenses treated as product costs or as period costs under variable costing?

Q: What is meant by an activity base when dealing with variable costs

What is meant by an activity base when dealing with variable costs? Give several examples of activity bases.

Q: “Variable costs and differential costs mean the same thing.” Do

“Variable costs and differential costs mean the same thing.” Do you agree? Explain.

Q: Why is the sales forecast the starting point in budgeting?

Why is the sales forecast the starting point in budgeting?

Q: Managers often assume a strictly linear relationship between cost and volume.

Managers often assume a strictly linear relationship between cost and volume. How can this practice be defended in light of the fact that many costs are curvilinear?

Q: If the units produced and unit sales are equal, which method

If the units produced and unit sales are equal, which method would you expect to show the higher net operating income, variable costing or absorption costing? Why?

Q: If fixed manufacturing overhead costs are released from inventory under absorption costing

If fixed manufacturing overhead costs are released from inventory under absorption costing, what does this tell you about the level of production in relation to the level of sales?

Q: Does the concept of the relevant range apply to fixed costs?

Does the concept of the relevant range apply to fixed costs? Explain.

Q: What account is credited when overhead cost is applied to Work in

What account is credited when overhead cost is applied to Work in Process? Would you expect the amount applied for a period to equal the actual overhead costs of the period? Why or why not?

Q: Give the general formula for a mixed cost. Which term represents

Give the general formula for a mixed cost. Which term represents the variable cost? The fixed cost?

Q: What is meant by the term least-squares regression?

What is meant by the term least-squares regression?

Q: What adjustment is made for underapplied overhead on the schedule of cost

What adjustment is made for underapplied overhead on the schedule of cost of goods sold? What adjustment is made for overapplied overhead?

Q: What is the major disadvantage of the high-low method?

What is the major disadvantage of the high-low method?

Q: Provide two reasons why overhead might be underapplied in a given year

Provide two reasons why overhead might be underapplied in a given year.

Q: “If a product line is generating a loss, then it

“If a product line is generating a loss, then it should be discontinued.” Do you agree? Explain.

Q: What happens to overhead rates based on direct labor when automated equipment

What happens to overhead rates based on direct labor when automated equipment replaces direct labor?

Q: What is the difference between ordinary least-squares regression analysis and

What is the difference between ordinary least-squares regression analysis and multiple regression analysis?

Q: What is the contribution margin?

What is the contribution margin?

Q: “As a practical matter, planning and control mean exactly the

“As a practical matter, planning and control mean exactly the same thing.” Do you agree? Explain.

Q: How can budgeting assist a company in planning its workforce staffing levels

How can budgeting assist a company in planning its workforce staffing levels?

Q: What is a relevant cost?

What is a relevant cost?

Q: How will relating product contribution margins to the amount of the constrained

How will relating product contribution margins to the amount of the constrained resource they consume help a company maximize its profits?

Q: Are variable costs always relevant costs? Explain.

Are variable costs always relevant costs? Explain.

Q: “Sunk costs are easy to spot—they’re simply the fixed

“Sunk costs are easy to spot—they’re simply the fixed costs associated with a decision.” Do you agree? Explain.

Q: “All future costs are relevant in decision making.” Do you

“All future costs are relevant in decision making.” Do you agree? Why?

Q: What are cash equivalents, and why are they included with cash

What are cash equivalents, and why are they included with cash on a statement of cash flows?

Q: Prentice Company is considering dropping one of its product lines. What

Prentice Company is considering dropping one of its product lines. What costs of the product line would be relevant to this decision? Irrelevant?

Q: What is the danger in allocating common fixed costs among product lines

What is the danger in allocating common fixed costs among product lines or other segments of an organization?

Q: What is the purpose of a statement of cash flows?

What is the purpose of a statement of cash flows?

Q: If the Accounts Receivable balance increases during a period, how will

If the Accounts Receivable balance increases during a period, how will this increase be recognized using the indirect method of computing the net cash provided by operating activities?

Q: Would a sale of equipment for cash be considered a financing activity

Would a sale of equipment for cash be considered a financing activity or an investing activity? Why?

Q: What is the difference between net cash provided by operating activities and

What is the difference between net cash provided by operating activities and free cash flow?

Q: Why is interest paid on amounts borrowed from banks and other lenders

Why is interest paid on amounts borrowed from banks and other lenders considered to be an operating activity while the amounts borrowed are financing activities?

Q: If an asset is sold at a gain, why is the

If an asset is sold at a gain, why is the gain deducted from net income when computing the net cash provided by operating activities under the indirect method?

Q: Why aren’t transactions involving accounts payable considered to be financing activities?

Why aren’t transactions involving accounts payable considered to be financing activities?

Q: Assume that a company repays a $300,000 loan from

Assume that a company repays a $300,000 loan from its bank and then later in the same year borrows $500,000. What amount(s) would appear on the statement of cash flows?

Q: What are the three major sections on a statement of cash flows

What are the three major sections on a statement of cash flows, and what are the general rules that determine the transactions that should be included in each section?

Q: How do the direct and the indirect methods differ in their approach

How do the direct and the indirect methods differ in their approach to computing the net cash provided by operating activities?

Q: How does the computation of equivalent units under the FIFO method differ

How does the computation of equivalent units under the FIFO method differ from the computation of equivalent units under the weighted-average method?

Q: “I think we goofed when we hired that new assistant controller

“I think we goofed when we hired that new assistant controller,” said Ruth Scarpino, president of Provost Industries. “Just look at this report that he prepared for last month for the Finishing Depart...

Q: You and your friends go to a restaurant as a group.

You and your friends go to a restaurant as a group. At the end of the meal, the issue arises of how the bill for the group should be shared. One alternative is to figure out the cost of what each indi...

Q: You often provide advice to Maria Graham, a client who is

You often provide advice to Maria Graham, a client who is interested in diversifying her company. Maria is considering the purchase of a small manufacturing company that assembles and packages its man...

Q: Gary Stevens and Mary James are production managers in the Consumer Electronics

Gary Stevens and Mary James are production managers in the Consumer Electronics Division of General Electronics Company, which has several dozen plants scattered in locations throughout the world. Mar...

Q: Your team should visit and closely observe the operations at a fast

Your team should visit and closely observe the operations at a fast-food restaurant. Required: Identify activities and costs at the restaurant that fall into each of the following categories: a. Unit...

Q: “A dollar of gross margin per briefcase? That’s ridiculous!”

“A dollar of gross margin per briefcase? That’s ridiculous!” roared Art Dejans, president of CarryAll, Inc. “Why do we go on pro...

Q: Java Source, Inc. (JSI), is a processor and

Java Source, Inc. (JSI), is a processor and distributor of a variety of blends of coffee. The company buys coffee beans from around the world and roasts, blends, and packages them for resale. JSI offe...

Q: The questions in this exercise are based on Dell, Inc.

The questions in this exercise are based on Dell, Inc. To answer the questions, you will needto download Dell’s Form 10-K for the fiscal year ended January 28, 2005 by going to www.sec.gov/edgar/searc...

Q: A business executive once stated, “Depreciation is one of our

A business executive once stated, “Depreciation is one of our biggest sources of cash.” Do you agree that depreciation is a source of cash? Explain.

Q: The questions in this exercise are based on JetBlue Airways Corporation.

The questions in this exercise are based on JetBlue Airways Corporation. To answer the questions, you will need to download JetBlue’s Form 10-K/A for the year ended December 31, 2004 at www.sec.gov/ed...

Q: Whirly Corporation’s most recent income statement is shown below:

Whirly Corporation’s most recent income statement is shown below: Required: Prepare a new contribution format income statement under each of the following conditions (consider each...

Q: Miller Company’s most recent contribution format income statement is shown below:

Miller Company’s most recent contribution format income statement is shown below: Required: Prepare a new contribution format income statement under each of the following condition...

Q: Feather Friends, Inc., distributes a high-quality wooden birdhouse

Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $20 per unit. Variable costs are $8 per unit, and fixed costs total $180,000 per year. Required: Answer the following...

Q: What is meant by a product’s contribution margin ratio? How is

What is meant by a product’s contribution margin ratio? How is this ratio useful in planning business operations?

Q: What are the three common approaches for assigning overhead costs to products

What are the three common approaches for assigning overhead costs to products?

Q: Under what conditions would it be appropriate to use a process costing

Under what conditions would it be appropriate to use a process costing system?

Q: Describe the three major activities of a manager.

Describe the three major activities of a manager.

Q: What is a quantity standard? What is a price standard?

What is a quantity standard? What is a price standard?

Q: What is meant by the term decentralization?

What is meant by the term decentralization?

Q: Martin Company manufactures a powerful cleaning solvent. The main ingredient in

Martin Company manufactures a powerful cleaning solvent. The main ingredient in the solvent is a raw material called Echol. Information concerning the purchase and use of Echol follows: Purchase of Ec...

Q: In what ways are job-order and process costing similar?

In what ways are job-order and process costing similar?

Q: Karlik Enterprises distributes a single product whose selling price is $24

Karlik Enterprises distributes a single product whose selling price is $24 and whose variable expense is $18 per unit. The company’s monthly fixed expense is $24,000. Required: 1. Prepare a cost-volum...

Q: Menlo Company distributes a single product. The company’s sales and expenses

Menlo Company distributes a single product. The company’s sales and expenses for last month follow: Required: 1. What is the monthly break-even point in units sold and in sales dol...

Q: Gold Star Rice, Ltd., of Thailand exports Thai rice throughout

Gold Star Rice, Ltd., of Thailand exports Thai rice throughout Asia. The company grows three varieties of rice—Fragrant, White, and Loonzain. (The currency in Thailand is the baht, w...

Q: On the cost reconciliation part of the production report, the weighted

On the cost reconciliation part of the production report, the weighted-average method treats all units transferred out in the same way. How does this differ from the FIFO method of handling units tran...

Q: Often the most direct route to a business decision is an incremental

Often the most direct route to a business decision is an incremental analysis. What is meant by an incremental analysis?

Q: What are the four steps in the planning and control cycle?

What are the four steps in the planning and control cycle?

Q: Why is activity-based costing growing in popularity?

Why is activity-based costing growing in popularity?

Q: Distinguish between ideal and practical standards?

Distinguish between ideal and practical standards?

Q: Why do departmental overhead rates sometimes result in inaccurate product costs?

Why do departmental overhead rates sometimes result in inaccurate product costs?

Q: Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the

Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the company’s products, a football helmet for the North American market, requires a special plastic. During the quarter end...

Q: From the standpoint of cost control, why is the FIFO method

From the standpoint of cost control, why is the FIFO method superior to the weighted-average method?

Q: Why is cost accumulation simpler in a process costing system than it

Why is cost accumulation simpler in a process costing system than it is in a job-order costing system?

Q: Jaffre Enterprises distributes a single product whose selling price is $16

Jaffre Enterprises distributes a single product whose selling price is $16 and whose variable expense is $11 per unit. The company’s fixed expense is $16,000 per month. Required: 1. Prepare a profit...

Q: The Fashion Shoe Company operates a chain of women’s shoe shops around

The Fashion Shoe Company operates a chain of women’s shoe shops around the country. The shops carry many styles of shoes that are all sold at the same price. Sales personnel in the s...

Q: In all respects, Company A and Company B are identical except

In all respects, Company A and Company B are identical except that Company A’s costs are mostly variable, whereas Company B’s costs are mostly fixed. When sales increase, which company will tend to re...

Q: What are the major differences between financial and managerial accounting?

What are the major differences between financial and managerial accounting?

Q: What is meant by the term management by exception?

What is meant by the term management by exception?

Q: Distinguish between a cost center, a profit center, and an

Distinguish between a cost center, a profit center, and an investment center.

Q: Last month when Holiday Creations, Inc., sold 50,000

Last month when Holiday Creations, Inc., sold 50,000 units, total sales were $200,000, total variable expenses were $120,000, and fixed expenses were $65,000. Required: 1. What is the company’s cont...

Q: Fill in the missing amounts in each of the eight case situations

Fill in the missing amounts in each of the eight case situations below. Each case is independent of the others. a. Assume that only one product is being sold in each of the four following case situati...

Q: SkyChefs, Inc., prepares in-flight meals for a number

SkyChefs, Inc., prepares in-flight meals for a number of major airlines. One of the company’s products is grilled salmon in dill sauce with baby new potatoes and spring vegetables. During the most rec...

Q: Due to erratic sales of its sole product—a high-

Due to erratic sales of its sole product—a high-capacity battery for laptop computers—PEM, Inc., has been experiencing difficulty for some time. The company’s contribution format income statement for...

Q: What is meant by the term operating leverage?

What is meant by the term operating leverage?

Q: What are the three major elements of product costs in a manufacturing

What are the three major elements of product costs in a manufacturing company?

Q: How many Work in Process accounts are maintained in a company that

How many Work in Process accounts are maintained in a company that uses process costing

Q: What are the four hierarchical levels of activity discussed in the chapter

What are the four hierarchical levels of activity discussed in the chapter?

Q: Why are separate price and quantity variances computed?

Why are separate price and quantity variances computed?

Q: What is a segment of an organization? Give several examples of

What is a segment of an organization? Give several examples of segments.

Q: Data for Hermann Corporation are shown below: /

Data for Hermann Corporation are shown below: Required: 1. The marketing manager argues that a $5,000 increase in the monthly advertising budget would increase monthly sales by $9,000. Should the ad...

Q: Magic Realm, Inc., has developed a new fantasy board game

Magic Realm, Inc., has developed a new fantasy board game. The company sold 15,000 games last year at a selling price of $20 per game. Fixed costs associated with the game total $182,000 per year, and...

Q: What is meant by the term break-even point?

What is meant by the term break-even point?

Q: Logistics Solutions provides order fulfillment services for dot-com merchants.

Logistics Solutions provides order fulfillment services for dot-com merchants. The company maintains warehouses that stock items carried by its dot-com clients. When a client receives an order from a...

Q: Why is activity-based costing described as a “two-

Why is activity-based costing described as a “two-stage” costing method?

Q: Assume that a company has two processing departments—Mixing and Firing

Assume that a company has two processing departments—Mixing and Firing. Prepare a journal entry to show a transfer of work in process from the Mixing Department to the Firing Department.

Q: Define the following: (a) Direct materials (

Define the following: (a) Direct materials (b) Indirect materials (c) Direct labor (d) Indirect labor, And (e) Manufacturing overhead

Q: Who is generally responsible for the materials price variance? The materials

Who is generally responsible for the materials price variance? The materials quantity variance? The labor efficiency variance?

Q: What costs are assigned to a segment under the contribution approach?

What costs are assigned to a segment under the contribution approach?

Q: Why do overhead costs often shift from high-volume products to

Why do overhead costs often shift from high-volume products to low-volume products when a company switches from a conventional costing method to activity-based costing?

Q: Assume that a company has two processing departments—Mixing followed by

Assume that a company has two processing departments—Mixing followed by Firing. Explain what costs might be added to the Firing Department’s Work in Process account during a period.

Q: Lin Corporation has a single product whose selling price is $120

Lin Corporation has a single product whose selling price is $120 and whose variable expense is $80 per unit. The company’s monthly fixed expense is $50,000. Required: 1. Using the equation method, so...

Q: Outback Outfitters sells recreational equipment. One of the company’s products,

Outback Outfitters sells recreational equipment. One of the company’s products, a small camp stove, sells for $50 per unit. Variable expenses are $32 per stove, and fixed expenses associated with the...

Q: In response to a request from your immediate supervisor, you have

In response to a request from your immediate supervisor, you have prepared a CVP graph portraying the cost and revenue characteristics of your company’s product and operations. Explain how the lines o...

Q: Victoria Chocolates, Ltd., makes premium handcrafted chocolate confections in London

Victoria Chocolates, Ltd., makes premium handcrafted chocolate confections in London. The owner of the company is setting up a standard cost system and has collected the following data for one of the...

Q: Explain the difference between a product cost and a period cost.

Explain the difference between a product cost and a period cost.

Q: The materials price variance can be computed at what two different points

The materials price variance can be computed at what two different points in time? Which point is better? Why?

Q: What are the three major ways in which activity-based costing

What are the three major ways in which activity-based costing improves the accuracy of product costs?

Q: Mauro Products distributes a single product, a woven basket whose selling

Mauro Products distributes a single product, a woven basket whose selling price is $15 and whose variable expense is $12 per unit. The company’s monthly fixed expense is $4,200. Required: 1. Solve fo...

Q: The Hartford Symphony Guild is planning its annual dinner-dance.

The Hartford Symphony Guild is planning its annual dinner-dance. The dinner-dance committee has assembled the following expected costs for the event: Dinner (per person) ................................

Q: What is meant by the margin of safety?

What is meant by the margin of safety?

Q: What is meant by the term equivalent units of production when the

What is meant by the term equivalent units of production when the weighted-average method is used?

Q: Describe how the income statement of a manufacturing company differs from the

Describe how the income statement of a manufacturing company differs from the income statement of a merchandising company.

Q: If the materials price variance is favorable but the materials quantity variance

If the materials price variance is favorable but the materials quantity variance is unfavorable, what might this indicate?

Q: What are the major limitations of activity-based costing?

What are the major limitations of activity-based costing?

Q: Dawson Toys, Ltd., produces a toy called the Maze.

Dawson Toys, Ltd., produces a toy called the Maze. The company has recently established a standard cost system to help control costs and has established the following standards for the Maze toy: Direc...

Q: Molander Corporation is a distributor of a sun umbrella used at resort

Molander Corporation is a distributor of a sun umbrella used at resort hotels. Data concerning the next month’s budget appear below: Selling price ........................................................

Q: Olongapo Sports Corporation is the distributor in the Philippines of two premium

Olongapo Sports Corporation is the distributor in the Philippines of two premium golf balls—the Flight Dynamic and the Sure Shot. Monthly sales, expressed in pesos (P), and the contr...

Q: What is meant by the term sales mix? What assumption is

What is meant by the term sales mix? What assumption is usually made concerning sales mix in CVP analysis?

Q: Watkins Trophies, Inc., produces thousands of medallions made of bronze

Watkins Trophies, Inc., produces thousands of medallions made of bronze, silver, and gold. The medallions are identical except for the materials used in their manufacture. What costing system would yo...

Q: Describe the schedule of cost of goods manufactured. How does it

Describe the schedule of cost of goods manufactured. How does it tie into the income statement?

Q: Should standards be used to identify whom to blame for problems?

Should standards be used to identify whom to blame for problems?

Q: Explain how a shift in the sales mix could result in both

Explain how a shift in the sales mix could result in both a higher break-even point and a lower net income.

Q: Describe how the inventory accounts of a manufacturing company differ from the

Describe how the inventory accounts of a manufacturing company differ from the inventory account of a merchandising company.

Q: Engberg Company installs lawn sod in home yards. The company’s most

Engberg Company installs lawn sod in home yards. The company’s most recent monthly contribution format income statement follows: Required: 1. Compute the company’...

Q: “Our workers are all under labor contracts; therefore, our

“Our workers are all under labor contracts; therefore, our labor rate variance is bound to be zero.” Discuss.

Q: Distinguish between (a) A variable cost, (

Distinguish between (a) A variable cost, (b) A mixed cost, and (c) A step-variable cost. Plot the three costs on a graph, with activity plotted horizontally and cost plotted vertically.

Q: Huron Company produces a commercial cleaning compound known as Zoom. The

Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: During the most recent month, the following...

Q: Lucido Products markets two computer games: Claim jumper and Makeover.

Lucido Products markets two computer games: Claim jumper and Makeover. A contribution format income statement for a recent month for the two games appears below: Required: 1. Compute the overall con...

Q: Why are product costs sometimes called inventoriable costs? Describe the flow

Why are product costs sometimes called inventoriable costs? Describe the flow of such costs in a manufacturing company from the point of incurrence until they finally become expenses on the income sta...

Q: What effect, if any, would you expect poor-quality

What effect, if any, would you expect poor-quality materials to have on direct labor variances?

Q: What is meant by the terms margin and turnover in ROI calculations

What is meant by the terms margin and turnover in ROI calculations?

Q: Is it possible for costs such as salaries or depreciation to end

Is it possible for costs such as salaries or depreciation to end up as assets on the balance sheet? Explain.

Q: What is meant by residual income?

What is meant by residual income?

Q: If variable manufacturing overhead is applied to production on the basis of

If variable manufacturing overhead is applied to production on the basis of direct labor-hours and the direct labor efficiency variance is unfavorable, will the variable overhead efficiency variance b...

Q: “The variable cost per unit varies with output, whereas the

“The variable cost per unit varies with output, whereas the fixed cost per unit is constant.” Do you agree? Explain.

Q: What is a statistical control chart, and how is it used

What is a statistical control chart, and how is it used?

Q: Define the following terms: differential cost, opportunity cost, and

Define the following terms: differential cost, opportunity cost, and sunk cost.

Q: Refer to the data in Exercise 9–7. Assume that

Refer to the data in Exercise 9–7. Assume that instead of producing 4,000 units during the month, the company produced only 3,000 units, using 14,750 pounds of material. (The rest of...

Q: Why do the measures used in a balanced scorecard differ from company

Why do the measures used in a balanced scorecard differ from company to company?

Q: Why can undue emphasis on labor efficiency variances lead to excess work

Why can undue emphasis on labor efficiency variances lead to excess work in process inventories?

Q: Only variable costs can be differential costs. Do you agree?

Only variable costs can be differential costs. Do you agree? Explain.

Q: Privack Corporation has a standard cost system in which it applies overhead

Privack Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most r...

Q: Primara Corporation has a standard cost system in which it applies overhead

Primara Corporation has a standard cost system in which it applies overhead to products based on the standard direct labor-hours allowed for the actual output of the period. Data concerning the most r...

Q: Operating at a normal level of 30,000 direct labor-

Operating at a normal level of 30,000 direct labor-hours, Lasser Company produces 10,000 units of product each period. The direct labor wage rate is $12 per hour. Two and one-half yards of direct mate...

Q: Norwall Company’s variable manufacturing overhead should be $3.00 per

Norwall Company’s variable manufacturing overhead should be $3.00 per standard machine-hour and its fixed manufacturing overhead should be $300,000 per period. The following information is available f...

Q: Selected operating information on three different companies for a recent year is

Selected operating information on three different companies for a recent year is given below: Required: For each company, state whether the company would have a favorable or unfavorable volume varia...

Q: The standard cost card for the single product manufactured by Cutter,

The standard cost card for the single product manufactured by Cutter, Inc., is given below: Standard Cost Card—per Unit Direct materials, 3 yards at $6.00 per yard ....................

Q: Selected information relating to Yost Company’s operations for the most recent year

Selected information relating to Yost Company’s operations for the most recent year is given below: Activity: Denominator activity (machine-hours) ............ 45,000 Standard hours allowed per unit …...

Q: Erie Company manufactures a small CD player called the Jogging Mate.

Erie Company manufactures a small CD player called the Jogging Mate. The company uses standards to control its costs. The labor standards that have been set for one Jogging Mate CD player are as follo...

Q: Flandro Company uses a standard cost system and sets predetermined overhead rates

Flandro Company uses a standard cost system and sets predetermined overhead rates on the basis of direct labor-hours. The following data are taken from the company’s budget for the current year: Deno...

Q: “Wonderful! Not only did our salespeople do a good job

“Wonderful! Not only did our salespeople do a good job in meeting the sales budget this year, but our production people did a good job in controlling costs as well,” said Kim Clark, president of Marte...

Q: Chilczuk, S.A., of Gdansk, Poland, is

Chilczuk, S.A., of Gdansk, Poland, is a major producer of classic Polish sausage. The company uses a standard cost system to help control costs. Manufacturing overhead is applied to production on the...

Q: Lane Company manufactures a single product that requires a great deal of

Lane Company manufactures a single product that requires a great deal of hand labor. Overhead cost is applied on the basis of standard direct labor-hours. Variable manufacturing overhead should be $2...

Q: Bliny Corporation makes a product with the following standard costs for direct

Bliny Corporation makes a product with the following standard costs for direct material and direct labor: Direct material: 2.00 meters at $3.25 per meter ..................... $6.50 Direct labor: 0.4...

Q: Genola Fashions began production of a new product on June 1.

Genola Fashions began production of a new product on June 1. The company uses a standard cost system and has established the following standards for one unit of the new product: During June, the fol...

Q: Trueform Products, Inc., produces a broad line of sports equipment

Trueform Products, Inc., produces a broad line of sports equipment and uses a standard cost system for control purposes. Last year the company produced 8,000 varsity footballs. The standard costs asso...

Q: Maple Products, Ltd., manufactures a super-strong hockey stick

Maple Products, Ltd., manufactures a super-strong hockey stick. The standard cost of one hockey stick is: Last year, 8,000 hockey sticks were produced and sold. Selected cost data relating to last y...

Q: Why does the balanced scorecard include financial performance measures as well as

Why does the balanced scorecard include financial performance measures as well as measures of how well internal business processes are doing?

Q: What benefits result from decentralization?

What benefits result from decentralization?

Q: The auto repair shop of Quality Motor Company uses standards to control

The auto repair shop of Quality Motor Company uses standards to control the labor time and labor cost in the shop. The standard labor cost for a motor tune-up is given below: The record showing the...

Q: Distinguish between a traceable cost and a common cost. Give several

Distinguish between a traceable cost and a common cost. Give several examples of each.

Q: Explain how the segment margin differs from the contribution margin.

Explain how the segment margin differs from the contribution margin.

Q: Why aren’t common costs allocated to segments under the contribution approach?

Why aren’t common costs allocated to segments under the contribution approach?

Q: How is it possible for a cost that is traceable to a

How is it possible for a cost that is traceable to a segment to become a common cost if the segment is divided into further segments?

Q: In what way can the use of ROI as a performance measure

In what way can the use of ROI as a performance measure for investment centers lead to bad decisions? How does the residual income approach overcome this problem?

Q: Distinguish between (a) A variable cost, (

Distinguish between (a) A variable cost, (b) A fixed cost, and (c) A mixed cost.

Q: How do the performance measurement and compensation systems of service companies compare

How do the performance measurement and compensation systems of service companies compare with those of manufacturers? Ask the manager of your local McDonald’s, Wendy’s, Burger King, or other fast-food...

Q: What effect does an increase in volume have on— a

What effect does an increase in volume have on— a. Unit fixed costs? b. Unit variable costs? c. Total fixed costs? d. Total variable costs?

Q: What is the purpose of the job cost sheet in a job

What is the purpose of the job cost sheet in a job-order costing system?

Q: What is a predetermined overhead rate, and how is it computed

What is a predetermined overhead rate, and how is it computed?

Q: Becton Labs, Inc., produces various chemical compounds for industrial use

Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for...

Q: Mason Paper Company (MPC) manufactures commodity grade papers for use

Mason Paper Company (MPC) manufactures commodity grade papers for use in computer printers and photocopiers. MPC has reported net operating losses for the last two years due to intense price pressure...

Q: Explain how a sales order, a production order, a materials

Explain how a sales order, a production order, a materials requisition form, and a labor time ticket are involved in producing and costing products.

Q: Explain why some production costs must be assigned to products through an

Explain why some production costs must be assigned to products through an allocation process.

Q: Why do companies use predetermined overhead rates rather than actual manufacturing overhead

Why do companies use predetermined overhead rates rather than actual manufacturing overhead costs to apply overhead to jobs?

Q: What factors should be considered in selecting a base to be used

What factors should be considered in selecting a base to be used in computing the predetermined overhead rate?

Q: If a company fully allocates all of its overhead costs to jobs

If a company fully allocates all of its overhead costs to jobs, does this guarantee that a profit will be earned for the period?

Q: Define the following terms: (a) Cost behavior and

Define the following terms: (a) Cost behavior and (b) Relevant range.

Q: Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant

Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as shown by its June contribution format income statement below: Janet Dunn, w...

Q: John Fleming, chief administrator for Valley View Hospital, is concerned

John Fleming, chief administrator for Valley View Hospital, is concerned about the costs for tests in the hospital’s lab. Charges for lab tests are consistently higher at Valley View than at other hos...

Q: Danson Company is a chemical manufacturer that supplies various products to industrial

Danson Company is a chemical manufacturer that supplies various products to industrial users. The company plans to introduce a new chemical solution, called Nysap, for which it needs to develop a stan...

Q: Sharp Company manufactures a product for which the following standards have been

Sharp Company manufactures a product for which the following standards have been set: During March, the company purchased direct materials at a cost of $55,650, all of which were used in the product...

Q: Highland Company produces a lightweight backpack that is popular with college students

Highland Company produces a lightweight backpack that is popular with college students. Standard variable costs relating to a single backpack are given on the following page: Overhead is applied to...

Q: What is a plantwide overhead rate? Why are multiple overhead rates

What is a plantwide overhead rate? Why are multiple overhead rates, rather than a plantwide overhead rate, used in some companies?

Q: ColdKing Company is a small producer of fruit-flavored frozen desserts

ColdKing Company is a small producer of fruit-flavored frozen desserts. For many years, ColdKing’s products have had strong regional sales on the basis of brand recognition; however, other companies h...

Q: Royal Lawncare Company produces and sells two packaged products, Weedban and

Royal Lawncare Company produces and sells two packaged products, Weedban and Greengrow. Revenue and cost information relating to the products follow: Common fixed expenses in the company total $33,0...

Q: Alyeska Services Company, a division of a major oil company,

Alyeska Services Company, a division of a major oil company, provides various services to the operators of the North Slope oil field in Alaska. Data concerning the most recent year appear below: Sales...

Q: Juniper Design Ltd. of Manchester, England, is a company

Juniper Design Ltd. of Manchester, England, is a company specializing in providing design services to residential developers. Last year the company had net operating income of £600,000 on sales of £3,...

Q: Meiji Isetan Corp. of Japan has two regional divisions with headquarters

Meiji Isetan Corp. of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow (in millions of yen, denoted by ¥): Required: 1....

Q: Selected operating data for two divisions of Outback Brewing, Ltd.,

Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below (the currency is the Australian dollar, denoted here as $): Required: 1. Compute the rate of return f...

Q: Provide the missing data in the following table for a distributor of

Provide the missing data in the following table for a distributor of martial arts products:

Q: Selected sales and operating data for three divisions of different structural engineering

Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Required: 1. Compute the return on investment (ROI) for each division using the...

Q: Pecs Alley is a regional chain of health clubs. The managers

Pecs Alley is a regional chain of health clubs. The managers of the clubs, who have authority to make investments as needed, are evaluated based largely on return on investment (ROI). The Springfield...

Q: CommercialServices.com Corporation provides business-to-business services on

CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: Sales ......................................................

Q: Refer to the data in Exercise 10–13. Assume that

Refer to the data in Exercise 10–13. Assume that Minneapolis’ sales by major market are: The company would like to initiate an intensive advertising campaign in o...

Q: Ariel Tax Services prepares tax returns for individual and corporate clients.

Ariel Tax Services prepares tax returns for individual and corporate clients. As the company has gradually expanded to 10 offices, the founder Max Jacobs has begun to feel as though he is losing contr...

Q: A family friend has asked your help in analyzing the operations of

A family friend has asked your help in analyzing the operations of three anonymous companies operating in the same service sector industry. Supply the missing data in the table below:

Q: Raner, Harris, & Chan is a consulting firm that specializes

Raner, Harris, & Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm has two offices—one in Chicago and one in Minneapolis....

Q: Wingate Company, a wholesale distributor of videotapes, has been experiencing

Wingate Company, a wholesale distributor of videotapes, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement, which follows: Sales ........

Q: Posters.com is a small Internet retailer of high-quality

Posters.com is a small Internet retailer of high-quality posters. The company has $1,000,000 in operating assets and fixed expenses of $150,000 per year. With this level of operating assets and fixed...

Q: “I know headquarters wants us to add that new product line

“I know headquarters wants us to add that new product line,” said Dell Havasi, manager of Billings Company’s Office Products Division. “But I want to see the numbers before I make any move. Our divisi...

Q: Comparative data on three companies in the same service industry are given

Comparative data on three companies in the same service industry are given below: Required: 1. What advantages are there to breaking down the ROI computation into two separate elements, margin and t...

Q: Financial data for Joel de Paris, Inc., for last year

Financial data for Joel de Paris, Inc., for last year follow: The company paid dividends of $15,000 last year. The “Investment in Buisson, S.A.” on the balance s...

Q: The contribution format income statement for Huerra Company for last year is

The contribution format income statement for Huerra Company for last year is given below: The company had average operating assets of $2,000,000 during the year. Required: 1. Compute the company&ac...

Q: Lost Peak ski resort was for many years a small, family

Lost Peak ski resort was for many years a small, family-owned resort serving day skiers from nearby towns. Lost Peak was recently acquired by Western Resorts, a major ski resort operator. The new owne...

Q: What is the difference between a contribution approach income statement and a

What is the difference between a contribution approach income statement and a traditional approach income statement?

Q: Vulcan Company’s contribution format income statement for June is given below:

Vulcan Company’s contribution format income statement for June is given below: Vulcan Company Income Statement For the Month Ended June 30 Sales ................................................. $750...

Q: Diversified Products, Inc., has recently acquired a small publishing company

Diversified Products, Inc., has recently acquired a small publishing company that Diversified Products intends to operate as one of its investment centers. The newly acquired company has three books t...

Q: The Midwest Consulting Group (MCG) helps companies build balanced scorecards

The Midwest Consulting Group (MCG) helps companies build balanced scorecards. As part of its marketing efforts, MCG conducts an annual balanced scorecard workshop for prospective clients. As MCG’s new...

Q: Losses have been incurred at Millard Corporation for some time. In

Losses have been incurred at Millard Corporation for some time. In an effort to isolate the problem and improve the company’s performance, management has requested that the monthly i...

Q: Quality Brick Company produces bricks in two processing departments—Molding and

Quality Brick Company produces bricks in two processing departments—Molding and Firing. Information relating to the company’s operations in March follows: a. Raw materials were issued for use in produ...

Q: Clonex Labs, Inc., uses a process costing system. The

Clonex Labs, Inc., uses a process costing system. The following data are available for one department for October: The department started 175,000 units into production during the month and transferr...

Q: Superior Micro Products uses the weighted-average method in its process

Superior Micro Products uses the weighted-average method in its process costing system. Data for the Assembly Department for May appear below: Required: 1. Compute the cost per equivalent unit for m...

Q: Data concerning a recent period’s activity in the Prep Department, the

Data concerning a recent period’s activity in the Prep Department, the first processing department in a company that uses process costing, appear below: A total of 20,100 units wer...

Q: Maria Am Corporation uses a process costing system. The Baking Department

Maria Am Corporation uses a process costing system. The Baking Department is one of the processing departments in its strudel manufacturing facility. In June in the Baking Department, the cost of begi...

Q: Chocolaterie de Geneve, SA, is located in a French-

Chocolaterie de Geneve, SA, is located in a French-speaking canton in Switzerland. The company makes chocolate truffles that are sold in popular embossed tins. The company has two processing departmen...

Q: Distinguish between discretionary fixed costs and committed fixed costs.

Distinguish between discretionary fixed costs and committed fixed costs.

Q: Hielta Oy, a Finnish company, processes wood pulp for various

Hielta Oy, a Finnish company, processes wood pulp for various manufacturers of paper products. Data relating to tons of pulp processed during June are provided below: Required: 1. Compute the number...

Q: Pureform, Inc., manufactures a product that passes through two departments

Pureform, Inc., manufactures a product that passes through two departments. Data for a recent month for the first department follow: The beginning work in process inventory was 80% complete with res...

Q: Helix Corporation produces prefabricated flooring in a series of steps carried out

Helix Corporation produces prefabricated flooring in a series of steps carried out in production departments. All of the material that is used in the first production department is added at the beginn...

Q: Scribners Corporation produces fine papers in three production departments—Pulping,

Scribners Corporation produces fine papers in three production departments—Pulping, Drying, and Finishing. In the Pulping Department, raw materials such as wood fiber and rag cotton...

Q: Superior Micro Products uses the weighted-average method in its process

Superior Micro Products uses the weighted-average method in its process costing system. During January, the Delta Assembly Department completed its processing of 25,000 units and transferred them to t...

Q: Alaskan Fisheries, Inc., processes salmon for various distributors. Two

Alaskan Fisheries, Inc., processes salmon for various distributors. Two departments are involved— Cleaning and Packing. Data relating to pounds of salmon processed in the Cleaning De...

Q: Sunspot Beverages, Ltd., of Fiji makes blended tropical fruit drinks

Sunspot Beverages, Ltd., of Fiji makes blended tropical fruit drinks in two stages. Fruit juices are extracted from fresh fruits and then blended in the Blending Department. The blended juices are the...

Q: Builder Products, Inc., manufactures a caulking compound that goes through

Builder Products, Inc., manufactures a caulking compound that goes through three processing stages prior to completion. Information on work in the first department, Cooking, for May follows: Productio...

Q: Old Country Links Inc. produces sausages in three production departments—

Old Country Links Inc. produces sausages in three production departments—Mixing, Casing and Curing, and Packaging. In the Mixing Department, meats are prepared and ground and then mi...

Q: Cooperative San José of southern Sonora state in Mexico makes a unique

Cooperative San José of southern Sonora state in Mexico makes a unique syrup using cane sugar and local herbs. The syrup is sold in small bottles and is prized as a flavoring for drinks and for use in...

Q: Birch Company normally produces and sells 30,000 units of RG

Birch Company normally produces and sells 30,000 units of RG-6 each month. RG-6 is a small electrical relay used as a component part in the automotive industry. The selling price is $22 per unit, vari...

Q: Weston Products manufactures an industrial cleaning compound that goes through three processing

Weston Products manufactures an industrial cleaning compound that goes through three processing departments—Grinding, Mixing, and Cooking. All raw materials are introduced at the sta...

Q: Lubricants, Inc., produces a special kind of grease that is

Lubricants, Inc., produces a special kind of grease that is widely used by race car drivers. The grease is produced in two processing departments: Refining and Blending. Raw materials are introduced a...

Q: Espresso Express operates a number of espresso coffee stands in busy suburban

Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $1,200 and the variable cost per cup of coffee served is $0.22. Requ...

Q: St. Mark’s Hospital contains 450 beds. The average occupancy rate

St. Mark’s Hospital contains 450 beds. The average occupancy rate is 80% per month. In other words, on average, 80% of the hospital’s beds are occupied by patients. At this level of occupancy, the hos...

Q: Marwick’s Pianos, Inc., purchases pianos from a large manufacturer and

Marwick’s Pianos, Inc., purchases pianos from a large manufacturer and sells them at the retail level. The pianos cost, on the average, $2,450 each from the manufacturer. Marwick’s Pianos, Inc., sells...

Q: Morrisey & Brown, Ltd., of Sydney is a merchandising company

Morrisey & Brown, Ltd., of Sydney is a merchandising company that is the sole distributor of a product that is increasing in popularity among Australian consumers. The company’s...

Q: A number of graphs displaying cost behavior patterns are shown below.

A number of graphs displaying cost behavior patterns are shown below. The vertical axis on each graph represents total cost, and the horizontal axis represents level of activity (volume). Required: 1...

Q: Pleasant View Hospital of British Columbia has just hired a new chief

Pleasant View Hospital of British Columbia has just hired a new chief administrator who is anxious to employ sound management and planning techniques in the business affairs of the hospital. According...

Q: Sawaya Co., Ltd., of Japan is a manufacturing company whose

Sawaya Co., Ltd., of Japan is a manufacturing company whose total factory overhead costs fluctuate considerably from year to year according to increases and decreases in the number of direct labor-hou...

Q: Amfac Company manufactures a single product. The company keeps careful records

Amfac Company manufactures a single product. The company keeps careful records of manufacturing activities from which the following information has been extracted: The company’s ma...

Q: A number of terms relating to the cost of quality and quality

A number of terms relating to the cost of quality and quality management are listed below: Appraisal costs ……………………………………………………………… Quality circles Quality cost report …………………………………………………………… Preventi...

Q: Stillicum Corporation makes ultra-light weight backpacking tents. Data concerning

Stillicum Corporation makes ultra-light weight backpacking tents. Data concerning the company’s two product lines appear below: The company has a traditional costing system in which...

Q: What is underapplied overhead? Overapplied overhead?

What is underapplied overhead? Overapplied overhead?

Q: How do you compute the raw materials used in production?

How do you compute the raw materials used in production?

Q: How do you compute the total manufacturing costs within a schedule of

How do you compute the total manufacturing costs within a schedule of cost of goods manufactured?

Q: How do you compute the cost of goods manufactured?

How do you compute the cost of goods manufactured?

Q: How do you compute the unadjusted cost of goods sold?

How do you compute the unadjusted cost of goods sold?

Q: How do direct labor costs flow through a job-order costing

How do direct labor costs flow through a job-order costing system?

Q: Assume that a company has two processing departments—Mixing followed by

Assume that a company has two processing departments—Mixing followed by Firing. Explain what costs might be added to the Firing Department’s Work in Process account during a period.

Q: What is the meaning of contribution margin ratio? How is this

What is the meaning of contribution margin ratio? How is this ratio useful in planning business operations?

Q: What is the meaning of operating leverage?

What is the meaning of operating leverage?

Q: What is the meaning of break-even point?

What is the meaning of break-even point?

Q: Star Videos, Inc., produces short musical videos for sale to

Star Videos, Inc., produces short musical videos for sale to retail outlets. The company’s balance sheet accounts as of January 1 are given below. Because the videos differ in lengt...

Q: What is the meaning of margin of safety?

What is the meaning of margin of safety?

Q: Brooks Corporation uses a job-order costing system to apply manufacturing

Brooks Corporation uses a job-order costing system to apply manufacturing costs to jobs. The company closes its underapplied or overapplied overhead to cost of goods sold. Its balance sheet on March 1...

Q: MediSecure, Inc., uses the FIFO method in its process costing

MediSecure, Inc., uses the FIFO method in its process costing system. It produces clear plastic containers for pharmacies in a process that starts in the Molding Department. Data concerning that depar...

Q: Refer to the data for Alaskan Fisheries, Inc., in Exercise

Refer to the data for Alaskan Fisheries, Inc., in Exercise 4–10. Exercise 4–10: Alaskan Fisheries, Inc., processes salmon for various distributors and it uses the...

Q: Refer to the data for Pureform, Inc., in Exercise 4

Refer to the data for Pureform, Inc., in Exercise 4–9. Exercise 4–9: Pureform, Inc., uses the weighted-average method in its process costing system. It manufacture...

Q: Refer to the data for Highlands Company. Assume that the company

Refer to the data for Highlands Company. Assume that the company uses the FIFO method in its process costing system. Required: 1. Compute the number of tons of pulp completed and transferred out duri...

Q: Archer Company is a wholesaler of custom-built air-conditioning

Archer Company is a wholesaler of custom-built air-conditioning units for commercial buildings. It gathered the following monthly data relating to units shipped and total shipping expense: Required:...

Q: The Hard Rock Mining Company is developing cost formulas for management planning

The Hard Rock Mining Company is developing cost formulas for management planning and decision-making purposes. The company’s cost analyst has concluded that utilities cost is a mixed...

Q: Milden Company is a distributor who wants to start using a contribution

Milden Company is a distributor who wants to start using a contribution format income statement for planning purposes. The company has analyzed its expenses and developed the following cost formulas:...

Q: Mercury, Inc., produces cell phones at its plant in Texas

Mercury, Inc., produces cell phones at its plant in Texas. In recent years, the company’s market share has been eroded by stiff competition from overseas. Price and product quality a...

Q: The Ramon Company is a manufacturer that is interested in developing a

The Ramon Company is a manufacturer that is interested in developing a cost formula to estimate the variable and fixed components of its monthly manufacturing overhead costs. The company wishes to use...

Q: This Excel worksheet form is to be used to recreate Exhibit 1

This Excel worksheet form is to be used to recreate Exhibit 1–7. Download the workbook containing this form from Connect, where you will also receive instructions. Required: 1. Chec...

Q: This Excel worksheet relates to the Dickson Company example that is summarized

This Excel worksheet relates to the Dickson Company example that is summarized in Exhibit 2–5. Download the workbook containing this form from Connect, where you will also find instr...

Q: The Excel worksheet form that appears below is to be used to

The Excel worksheet form that appears below is to be used to recreate part of the example relating to Turbo Crafters that appears earlier in the chapter. Download the workbook containing this form Yo...

Q: This exercise relates to the Double Diamond Skis’ Shaping and Milling Department

This exercise relates to the Double Diamond Skis’ Shaping and Milling Department that was discussed earlier in the chapter.The Excel worksheet form that appears below consolidates da...

Q: Question: The Excel worksheet form that appears below is to be

The Excel worksheet form that appears below is to be used to recreate portions of the Review Problem relating to Voltar Company. Download the workbook containing this form from Connect, where you will...

Q: The Dorilane Company produces a set of wood patio furniture consisting of

The Dorilane Company produces a set of wood patio furniture consisting of a table and four chairs. The company has enough customer demand to justify producing its full capacity of 2,000 sets per year....

Q: “Blast it!” said David Wilson, president of Teledex Company

“Blast it!” said David Wilson, president of Teledex Company. “We’ve just lost the bid on the Koopers job by $2,000. It seems we&...

Q: “Blast it!” said David Wilson, president of Teledex Company

“Blast it!” said David Wilson, president of Teledex Company. “We’ve just lost the bid on the Koopers job by $2,000. It seems we&...

Q: Cheryl Montoya picked up the phone and called her boss, Wes

Cheryl Montoya picked up the phone and called her boss, Wes Chan, the vice president of marketing at Piedmont Fasteners Corporation: “Wes, I’m not sure how to go ab...

Q: Siegel Company manufactures a product that is available in both a deluxe

Siegel Company manufactures a product that is available in both a deluxe model and a regular model. The company has manufactured the regular model for years. The deluxe model was introduced several ye...

Q: Olongapo Sports Corporation distributes two premium golf balls—Flight Dynamic and

Olongapo Sports Corporation distributes two premium golf balls—Flight Dynamic and Sure Shot. Monthly sales and the contribution margin ratios for the two products follow: Fixed expe...

Q: Miller Company’s contribution format income statement for the most recent month is

Miller Company’s contribution format income statement for the most recent month is shown below: Required: 1. What is the revised net operating income if unit sales increase by 15%?...

Q: Cherokee Inc. is a merchandiser that provided the following information:

Cherokee Inc. is a merchandiser that provided the following information: Amount Number of units sold……………………………………………………………………………. 20,000 Selling price per unit…………………………………………………………………………………. $30 Var...

Q: Kubin Company’s relevant range of production is 18,000 to 22

Kubin Company’s relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materi...

Q: : Refer to the data given in Exercise 3. Answer all

Refer to the data given in Exercise 3. Answer all questions independently. Data given in Exercise 3: Kubin Company’s relevant range of production is 18,000 to 22,000 units. When it produces and sell...

Q: Refer to the data given in Exercise 3. Answer all questions

Refer to the data given in Exercise 3. Answer all questions independently. Data from Exercise 3: Kubin Company’s relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,...

Q: Refer to the data given in Exercise 1–7. Answer

Refer to the data given in Exercise 1–7. Answer all questions independently. Data from Exercise 1-7: The Devon Motor Company produces automobiles. On April 1st the company had no beginning inventorie...

Q: The Devon Motor Company produces automobiles. On April 1st the company

The Devon Motor Company produces automobiles. On April 1st the company had no beginning inventories and it purchased 8,000 batteries at a cost of $80 per battery. It withdrew 7,600 batteries from the...

Q: Munchak Company’s relevant range of production is 9,000–11

Munchak Company’s relevant range of production is 9,000–11,000 units. Last month the company produced 10,000 units. Its total manufacturing cost per unit produced w...

Q: Java Source, Inc., (JSI) buys coffee beans from

Java Source, Inc., (JSI) buys coffee beans from around the world and roasts, blends, and packages them for resale. Some of JSI’s coffees are very popular and sell in large volumes, w...

Q: The.Alpine.House,.Inc.,.is a large retailer

The.Alpine.House,.Inc.,.is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Amount Sales...................................................

Q: Warner Corporation purchased a machine 7 years ago for $319,

Warner Corporation purchased a machine 7 years ago for $319,000 when it launched product P50. Unfortunately, this machine has broken down and cannot be repaired. The machine could be replaced by a new...

Q: Yancey Productions is a film studio that uses a job-order

Yancey Productions is a film studio that uses a job-order costing system. The company’s direct materials consist of items such as costumes and props. Its direct labor includes each film’s actors, dire...

Q: Delph Company uses a job-order costing system and has two

Delph Company uses a job-order costing system and has two manufacturing departments—Molding and Fabrication. The company provided the following estimates at the beginning of the year...

Q: Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis

Harris Fabrics computes its plantwide predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 20,000 direct labor-hours would be requir...

Q: Moody Corporation uses a job-order costing system with a plantwide

Moody Corporation uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates: Machine-h...

Q: Mickley Company’s plantwide predetermined overhead rate is $14.00 per

Mickley Company’s plantwide predetermined overhead rate is $14.00 per direct labor-hour and its direct labor wage rate is $17.00 per hour. The following information pertains to Job A-500: Direct mater...

Q: Fickel Company has two manufacturing departments—Assembly and Testing & Packaging

Fickel Company has two manufacturing departments—Assembly and Testing & Packaging. The predetermined overhead rates in Assembly and Testing & Packaging are $16.00 per direct labor-hour and $12.00 per...

Q: Braverman Company has two manufacturing departments—Finishing and Fabrication. The

Braverman Company has two manufacturing departments—Finishing and Fabrication. The predetermined overhead rates in Finishing and Fabrication are $18.00 per direct labor-hour and 110% of direct materia...

Q: : Tech Solutions is a consulting firm that uses a job-

Tech Solutions is a consulting firm that uses a job-order costing system. Its direct materials consist of hardware and software that it purchases and installs on behalf of its clients. The firm’s dir...

Q: Wixis Cabinets makes custom wooden cabinets for high-end stereo systems

Wixis Cabinets makes custom wooden cabinets for high-end stereo systems from specialty woods. The company uses a job-order costing system. The capacity of the plant is determined by the capacity of it...

Q: Hahn Company uses a job-order costing system. Its plantwide

Hahn Company uses a job-order costing system. Its plantwide predetermined overhead rate uses direct labor-hours as the allocation base. The company pays its direct laborers $15 per hour. During the ye...

Q: Taveras Corporation is currently operating at 50% of its available manufacturing

Taveras Corporation is currently operating at 50% of its available manufacturing capacity. It uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At th...

Q: Kingsport Containers Company makes a single product that is subject to wide

Kingsport Containers Company makes a single product that is subject to wide seasonal variations in demand. The company uses a job-order costing system and computes plantwide predetermined overhead rat...

Q: The following data from the just completed year are taken from the

The following data from the just completed year are taken from the accounting records of Mason Company Required: 1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in...

Q: Harwood Company uses a job-order costing system that applies overhead

Harwood Company uses a job-order costing system that applies overhead cost to jobs on the basis of machine-hours. The company’s predetermined overhead rate of $2.40 per machine-hour...

Q: Clonex Labs, Inc., uses the weighted-average method in

Clonex Labs, Inc., uses the weighted-average method in its process costing system. The following data are available for one department for October: The department started 175,000 units into productio...

Q: Maria Am Corporation uses the weighted-average method in its process

Maria Am Corporation uses the weighted-average method in its process costing system. The Baking Department is one of the processing departments in its strudel manufacturing facility. In June in the Ba...

Q: Highlands Company uses the weighted-average method in its process costing

Highlands Company uses the weighted-average method in its process costing system. It processes wood pulp for various manufacturers of paper products. Data relating to tons of pulp processed during Jun...

Q: Helix Corporation uses the weighted-average method in its process costing

Helix Corporation uses the weighted-average method in its process costing system. It produces prefabricated flooring in a series of steps carried out in production departments. All of the material tha...

Q: Pureform, Inc., uses the weighted-average method in its

Pureform, Inc., uses the weighted-average method in its process costing system. It manufactures a product that passes through two departments. Data for a recent month for the first department follow:...

Q: Security Pension Services helps clients to set up and administer pension plans

Security Pension Services helps clients to set up and administer pension plans that are in compliance with tax laws and regulatory requirements. The firm uses a job-order costing system in which overh...

Q: Whirly Corporation’s contribution format income statement for the most recent month is

Whirly Corporation’s contribution format income statement for the most recent month is shown below: Required: 1. What would be the revised net operating income per month if the sale...

Q: The following cost data pertain to the operations of Montgomery Department Stores

The following cost data pertain to the operations of Montgomery Department Stores, Inc., for the month of July. Corporate legal office salaries ...........................................................

Q: Todrick Company is a merchandiser that reported the following information based on

Todrick Company is a merchandiser that reported the following information based on 1,000 units sold: Sales ..............................................................................$300,000 Beginn...

Q: Madison Seniors Care Center is a nonprofit organization that provides a variety

Madison Seniors Care Center is a nonprofit organization that provides a variety of health services to the elderly. The center is organized into a number of departments, one of which is the Meals-On-...

Q: Miller Company’s total sales are $120,000. The company’s

Miller Company’s total sales are $120,000. The company’s direct labor cost is $15,000, which represents 30% of its total conversion cost and 40% of its total prime cost. Its total selling and administ...

Q: Dozier Company produced and sold 1,000 units during its first

Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month: Required: 1. With respect to cost classifications for pr...

Q: Milden Company is a merchandiser that plans to sell 12,000

Milden Company is a merchandiser that plans to sell 12,000 units during the next quarter at a selling price of $100 per unit. The company also gathered the following cost estimates for the next quarte...

Q: Landen Corporation uses a job-order costing system. At the

Landen Corporation uses a job-order costing system. At the beginning of the year, the company made the following estimates: Direct labor-hours required to support estimated production.......140,000 M...

Q: Wilmington Company has two manufacturing departments—Assembly and Fabrication. It

Wilmington Company has two manufacturing departments—Assembly and Fabrication. It considers all of its manufacturing overhead costs to be fixed costs. The first set of data that is s...

Q: Speedy Auto Repairs uses a job-order costing system. The

Speedy Auto Repairs uses a job-order costing system. The company’s direct materials consist of replacement parts installed in customer vehicles, and its direct labor consists of the mechanics’ hourly...

Q: Platinum Tracks, Inc., is a small audio recording studio located

Platinum Tracks, Inc., is a small audio recording studio located in Los Angeles. The company handles work for advertising agencies—primarily for radio ads—and has a...

Q: McCullough Hospital uses a job-order costing system to assign costs

McCullough Hospital uses a job-order costing system to assign costs to its patients. Its direct materials include a variety of items such as pharmaceutical drugs, heart valves, artificial hips, and pa...

Q: Mason Company has two manufacturing departments—Machining and Assembly. The

Mason Company has two manufacturing departments—Machining and Assembly. The company considers all of its manufacturing overhead costs to be fixed costs. It provided the following est...

Q: Luzadis Company makes furniture using the latest automated technology. The company

Luzadis Company makes furniture using the latest automated technology. The company uses a job order costing system and applies manufacturing overhead cost to products on the basis of machine hours. Th...

Q: Question: Superior Company provided the following data for the year ended

Superior Company provided the following data for the year ended December 31 (all raw materials are used in production as direct materials): Selling expenses ..............................................

Q: Froya Fabrikker A/S of Bergen, Norway, is a

Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields.The company uses a job-order costing system that applies manufactu...

Q: Supreme Videos, Inc., produces short musical videos for sale to

Supreme Videos, Inc., produces short musical videos for sale to retail outlets. The company’s balance sheet accounts as of January 1, are given below. Because the videos differ in l...

Q: Old Country Links, Inc., produces sausages in three production departments

Old Country Links, Inc., produces sausages in three production departments—Mixing, Casing and Curing, and Packaging. In the Mixing Department, meats are prepared and ground and then...

Q: Question: Sunspot Beverages, Ltd., of Fiji uses the weighted

Sunspot Beverages, Ltd., of Fiji uses the weighted-average method in its process costing system. It makes blended tropical fruit drinks in two stages. Fruit juices are extracted from fresh fruits and...

Q: Builder Products, Inc., uses the weighted-average method in

Builder Products, Inc., uses the weighted-average method in its process costing system. It manufactures a caulking compound that goes through three processing stages prior to completion. Information o...

Q: Island Novelties, Inc., of Palau makes two products—Hawaiian

Island Novelties, Inc., of Palau makes two products—Hawaiian Fantasy and Tahitian Joy. Each product’s selling price, variable expense per unit and annual sales volume are as follows:...

Q: : Pat Miranda, the new controller of Vault Hard Drives,

Pat Miranda, the new controller of Vault Hard Drives, Inc., has just returned from a seminar on the choice of the activity level in the predetermined overhead rate. Even though the subject did not sou...

Q: Define the following: (a) direct materials,

Define the following: (a) direct materials, (b) indirect materials, (c) direct labor, (d) indirect labor, and (e) manufacturing overhead.

Q: Distinguish between (a) a variable cost, (

Distinguish between (a) a variable cost, (b) a fixed cost, and (c) a mixed cost.

Q: Define the following terms: (a) cost behavior and

Define the following terms: (a) cost behavior and (b) relevant range.

Q: What is the difference between a traditional format income statement and a

What is the difference between a traditional format income statement and a contribution format income statement?

Q: What factors should be considered in selecting an allocation base to be

What factors should be considered in selecting an allocation base to be used in computing a predetermined overhead rate?

Q: Explain the four-step process used to compute a predetermined overhead

Explain the four-step process used to compute a predetermined overhead rate.

Q: What is the purpose of the job cost sheet in a job

What is the purpose of the job cost sheet in a job-order costing system?

Q: Martinez Company’s relevant range of production is 7,500 units to

Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Average Cost per Unit Direc...

Q: Sweeten Company had no jobs in progress at the beginning of March

Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departments—Molding and Fabrication. It started, com...

Q: Bunnell Corporation is a manufacturer that uses job-order costing.

Bunnell Corporation is a manufacturer that uses job-order costing. On January 1, the company’s inventory balances were as follows: Raw materials.......................$40,000 Work in process............

Q: Fogerty Company makes two products—titanium Hubs and Sprockets. Data

Fogerty Company makes two products—titanium Hubs and Sprockets. Data regarding the two products follow: Additional information about the company follows: a. Hubs require $32 in dire...

Q: Clopack Company manufactures one product that goes through one processing department called

Clopack Company manufactures one product that goes through one processing department called Mixing. All raw materials are introduced at the start of work in the Mixing Department. The company uses the...

Q: Oslo Company prepared the following contribution format income statement based on a

Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales .....................

Q: What are the three major types of product costs in a manufacturing

What are the three major types of product costs in a manufacturing company?

Q: What is absorption costing?

What is absorption costing?

Q: What is normal costing?

What is normal costing?

Q: What effect does an increase in the activity level have on—

What effect does an increase in the activity level have on— a. Unit fixed costs? b. Unit variable costs? c. Total fixed costs? d. Total variable costs?

Q: What is job-order costing?

What is job-order costing?

Q: How is the unit product cost of a job calculated?

How is the unit product cost of a job calculated?

Q: What is the link that connects the schedule of cost of goods

What is the link that connects the schedule of cost of goods manufactured to the schedule of cost of goods sold?

Q: Would you expect the amount of applied overhead for a period to

Would you expect the amount of applied overhead for a period to equal the actual overhead costs of the period? Why or why not?

Q: Carmen Company is a manufacturer that completed numerous transactions during the month

Carmen Company is a manufacturer that completed numerous transactions during the month, some of which are shown below: a. Raw materials used in production as direct materials, $56,000. b. Paid direct...

Q: Adams Company is a manufacturer that completed numerous transactions during the month

Adams Company is a manufacturer that completed numerous transactions during the month, some of which are shown below: a. Manufacturing overhead costs incurred on account, $80,000. b. Depreciation was...

Q: Dixon Company is a manufacturer that completed numerous transactions during the month

Dixon Company is a manufacturer that completed numerous transactions during the month, some of which are shown below: a. Raw materials purchased on account, $100,000. b. Raw materials used in producti...

Q: Morrison Company uses a job-order costing system to assign manufacturing

Morrison Company uses a job-order costing system to assign manufacturing costs to jobs. Its balance sheet on January 1 is as follows: During January the company completed the following transactions:...

Q: Newhard Company assigns overhead cost to jobs on the basis of 125

Newhard Company assigns overhead cost to jobs on the basis of 125% of direct labor cost. The job cost sheet for Job 313 includes $10,000 in direct materials cost and $12,000 in direct labor cost. A to...

Q: Martin Company uses the absorption costing approach to cost-plus pricing

Martin Company uses the absorption costing approach to cost-plus pricing.It is considering the introduction of a new product. To determine a selling price, the company has gathered the following infor...

Q: Comparative financial statements for Weller Corporation, a merchandising company, for

Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did not issue any new common stock during the year. A total...

Q: Refer to the data in Exercise 1 for Weller Corporation.

Refer to the data in Exercise 1 for Weller Corporation. Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did...

Q: Shimada Products Corporation of Japan is anxious to enter the electronic calculator

Shimada Products Corporation of Japan is anxious to enter the electronic calculator market. Management believes that in order to be competitive in world markets, the price of the electronic calculator...

Q: Refer to the data in Exercise 1 for Weller Corporation.

Refer to the data in Exercise 1 for Weller Corporation. Data given in Exercise 1: Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 app...

Q: Refer to the data in Exercise 1 for Weller Corporation.

Refer to the data in Exercise 1 for Weller Corporation. Data given in Exercise 1: Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 app...

Q: Refer to the financial statements for Castile Products, Inc., in

Refer to the financial statements for Castile Products, Inc., in Exercise 15–8. In addition to the data in these statements, assume that Castile Products, Inc., paid dividends of $2.10 per share durin...

Q: Refer to the data in Exercise 1 for Weller Corporation.

Refer to the data in Exercise 1 for Weller Corporation. Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 31 appear below. The company did...

Q: What is the most important reason for an organization to use enterprise

What is the most important reason for an organization to use enterprise risk management?

Q: When will the average unit cost be used for value streams?

When will the average unit cost be used for value streams?

Q: Texas-Q Company produces and sells barbeque grills. Texas-

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...

Q: Refer to the information for Smooth Move Company on the previous page

Refer to the information for Smooth Move Company on the previous page. If Smooth Move accepts the order, no fixed manufacturing activities will be affected because there is sufficient excess capacity....

Q: Waterfun Technology produces engines for recreational boats. Because of competitive pressures

Waterfun 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 activ...

Q: Refer to the information for Smooth Move Company on the previous page

Refer to the information for Smooth Move Company on the previous page. Suppose a customer wants to have its company logo affixed to each paperweight using a label. Smooth Move would have to purchase a...

Q: Knitline Inc. produces high-end sweaters and jackets in a

Knitline 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...

Q: The controller for Beckham Company believes that the number of direct labor

The controller for Beckham Company believes that the number of direct labor hours is associated with overhead cost. He collected the following data on the number of direct labor hours and associated f...

Q: Susan Lewis, owner of a florist shop, is interested in

Susan Lewis, owner of a florist shop, is interested in predicting the cost of delivering floral arrangements. She collected monthly data on the number of deliveries and the total monthly delivery cost...

Q: Lake McDonald Gift Shop has decided to price the National Parks Memory

Lake McDonald Gift Shop has decided to price the National Parks Memory Card Game that it sells at cost plus 65%. The National Parks Memory Card Game costs $20 each, and another one, the Guess This Ani...

Q: At the beginning of the year, Craig Company had the following

At the beginning of the year, Craig Company had the following standard cost sheet for one of its plastic products: Direct materials (5 lbs. @ $4.00) …………………$20.00 Direct labor (2 hrs. @ $15.00) ……………...

Q: Jack’s Apps Company researches, develops, and sells traditional applications (

Jack’s Apps Company researches, develops, and sells traditional applications (i.e., apps) for middle-aged mobile phone device users. In an attempt to tap into the large young adult app market to boost...

Q: How do international issues affect the role of the management accountant?

How do international issues affect the role of the management accountant?

Q: Apple Inc. is a multinational technology company that designs, develops

Apple Inc. is a multinational technology company that designs, develops, manufactures, and sells innovative consumer electronics products and services around the globe. Its products include laptop (e....

Q: Princeville Paradise Ice Cream Shoppe manufactures and sells premium ice cream in

Princeville Paradise Ice Cream Shoppe manufactures and sells premium ice cream in a unique Hawaiian environment. Princeville Paradise’s management performed a stakeholder engagement exercise to identi...

Q: Budgeted amounts for the year: Materials ……………………2

Budgeted amounts for the year: Materials ……………………2 leather strips @ $7.00 Labor …………………………………….1.5 hr. @ $18.00 VOH ……………………………………….1.5 hr. @ $1.20 FOH ……………………………………………………$6,800 Required: 1. Prep...

Q: Classify the following quality costs as prevention costs, appraisal costs,

Classify the following quality costs as prevention costs, appraisal costs, internal failure costs, or external failure costs: 1. Scrap (created by defective units) 2. Certifying a vendor to ensure tha...

Q: Bradshaw Company reported sales of $5,000,000 in

Bradshaw Company reported sales of $5,000,000 in 20X1. At the end of the fiscal year (June 30, 20X1), the following quality costs were reported: Vendor certification ……………………………..$ 43,500 Warranty …...

Q: The controller of Emery, Inc. has computed quality costs as

The controller of Emery, Inc. has computed quality costs as a percentage of sales for the past 5 years (20X1 was the first year the company implemented a quality improvement program). This information...

Q: Erba Inc. has the following departmental layout for producing an herbal

Erba Inc. has the following departmental layout for producing an herbal supplement: After a detailed study, the head of the plant’s industrial engineering department recommended th...

Q: A value stream has three activities and two products. The units

A value stream has three activities and two products. The units produced and shipped per week are 50 of the limited model (Model K), characterized by special additional features, and 150 of the regula...

Q: A Box Scorecard was prepared for a value stream:

A Box Scorecard was prepared for a value stream: Required: 1. How many nonfinancial measures are used to evaluate performance? Why are nonfinancial measures used? 2. Classify the operational measure...

Q: Consider each of the following situations. Is there a potential problem

Consider each of the following situations. Is there a potential problem? Which part of the fraud triangle is involved, if any? A. Susan is an accounts payable clerk. She sets up creditors in a financi...

Q: What are the advantages of the scattergraph method over the high-

What are the advantages of the scattergraph method over the high-low method? The high-low method over the scattergraph method?

Q: During 20X1, Craig Company had the following transactions: a

During 20X1, Craig Company had the following transactions: a. Purchased $300,000 of 10-year bonds issued by Makenzie Inc. b. Acquired land valued at $105,000 in exchange for machinery. c. Sold equipme...

Q: Refer to the information for Oliver Company above and on the previous

Refer to the information for Oliver Company above and on the previous page. Required: 1. Calculate the change in cash flows that serves as the control figure for the statement of cash flows. 2. Prepa...

Q: Refer to the information for Oliver Company above and on the previous

Refer to the information for Oliver Company above and on the previous page. Required: Prepare a schedule that provides operating cash flows for the year 20X2 using the direct method. Data for Exerci...

Q: Bryce Company manufactures pet supplies. However, Bryce’s electronic accounting system

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...

Q: Each of the following scenarios is independent. Assume that all cash

Each of the following scenarios is independent. Assume that all cash flows are after-tax cash flows. a. Cobre Company is considering the purchase of new equipment that will speed up the process for ex...

Q: Each of the following scenarios is independent. Assume that all cash

Each of the following scenarios is independent. Assume that all cash flows are after-tax cash flows. a. Campbell Manufacturing is considering the purchase of a new welding system. The cash benefits wi...

Q: Crazy Fan Guard Company provides security services to popular live sporting event

Crazy Fan Guard Company provides security services to popular live sporting event venues. Crazy Fan management has identified one of its top risks as the possibility that restrictions on premium close...

Q: Saludable Company produces two types of get-well cards: scented

Saludable 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 &ac...

Q: Suppose that Larimer Company sells a product for $24. Unit

Suppose that Larimer Company sells a product for $24. Unit costs are as follows: Direct materials …………………………………………………………$4.98 Direct labor …………………………………………………………………..2.10 Variable factory overhead ……...

Q: GreenWorld Inc. is a nursery products firm. It has three

GreenWorld Inc. is a nursery products firm. It has three divisions that grow and sell plants: the Western Division, the Southern Division, and the Canadian Division. Recently, the Southern Division of...

Q: Explain what a post audit is and how it can provide useful

Explain what a post audit is and how it can provide useful input for future capital

Q: Dr. Whitley Avard, a plastic surgeon, had just returned

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 pr...

Q: Techno Inc. has two divisions: Auxiliary Components and Audio Systems

Techno Inc. has two divisions: Auxiliary Components and Audio Systems. Divisional managers are encouraged to maximize ROI and EVA. Managers are essentially free to determine whether goods will be tran...

Q: Ondi Airlines is interested in acquiring a new aircraft to service a

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...

Q: Foster Company wants to buy a numerically controlled (NC) machine

Foster Company wants to buy a numerically controlled (NC) machine to be used in producing specially machined parts for manufacturers of trenching machines (to replace an existing manual system). The o...

Q: Leakam Company’s product engineering department has developed a new product that has

Leakam Company’s product engineering department has developed a new product that has a 3-year life cycle. Production of the product requires development of a new process that requires a current $100,0...

Q: I know that it’s the thing to do,” insisted Pamela Kincaid

I know that it’s the thing to do,” insisted Pamela Kincaid, vice president of finance for Colgate Manufacturing. “If we are going to be competitive, we need to build this completely automated plant.”...

Q: Pop’s Drive-Thru Burger Heaven produces and sells quarter-pound

Pop’s Drive-Thru Burger Heaven produces and sells quarter-pound hamburgers. Each burger is wrapped and put in a “burger bag,” which also includes...

Q: Newmarge Products Inc. is evaluating a new design for one of

Newmarge Products Inc. is evaluating a new design for one of its manufacturing processes. The new design will eliminate the production of a toxic solid residue. The initial cost of the system is estim...

Q: Heurion Company is a job-order costing firm that uses a

Heurion Company is a job-order costing firm that uses a plantwide overhead rate based on direct labor hours. Estimated information for the year is as follows: Overhead …â
...

Q: Laworld Inc. manufactures small camping tents. Last year, 200

Laworld Inc. manufactures small camping tents. Last year, 200,000 tents were made and sold for $60 each. Each tent includes the following costs: Direct materials ………………………………………………$18 Direct labor …...

Q: What is a foreign trade zone, and what advantages does it

What is a foreign trade zone, and what advantages does it offer U.S. companies?

Q: Hayward Company, a manufacturing firm, has supplied the following information

Hayward Company, a manufacturing firm, has supplied the following information from its accounting records for the month of May: Required: 1. Prepare a statement of cost of goods manufactured. 2. P...

Q: Xania Inc. uses a normal job-order costing system.

Xania Inc. uses a normal job-order costing system. Currently, a plantwide overhead rate based on machine hours is used. Xania’s plant manager has heard that departmental overhead rat...

Q: Ramsey Company produces speakers (Model A and Model B). Both

Ramsey Company produces speakers (Model A and Model B). Both products pass through two producing departments. Model A’s production is much more labor-intensive than that of Model B....

Q: Willow Company produces lawnmowers. One of its plants produces two versions

Willow Company produces lawnmowers. One of its plants produces two versions of mowers: a basic model and a deluxe model. The deluxe model has a sturdier frame, a higher horsepower engine, a wider blad...

Q: Basu Company produces two types of sleds for playing in the snow

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 fo...

Q: Refer to the information for Farnsworth Company on the previous page.

Refer to the information for Farnsworth Company on the previous page. Required: 1. Prepare a scattergraph based on the 10 months of data. Does the relationship appear to be linear? 2. Using the high-...

Q: Alard Company produces blenders and coffee makers. During the past year

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 $184,0...

Q: Candyland Inc. produces a particularly rich praline fudge. Each 10

Candyland Inc. produces a particularly rich praline fudge. Each 10-ounce box sells for $5.60. Variable unit costs are as follows: Pecans ………………………………………..$0.70 Sugar ……………………………………………0.35 Butter …………...

Q: FunTime Company produces three lines of greeting cards: scented, musical

FunTime Company produces three lines of greeting cards: scented, musical, and regular. Segmented income statements for the past year are as follows: Kathy Bunker, president of FunTime, is concerne...

Q: Suppose that Kicker had the following sales and cost experience (in

Suppose that Kicker had the following sales and cost experience (in thousands of dollars) for May of the current year and for May of the prior year: In May of the prior year, Kicker started an int...

Q: Define outsourcing, and discuss why companies may outsource various functions.

Define outsourcing, and discuss why companies may outsource various functions.

Q: Seacrest Company uses a process-costing system. The company manufactures

Seacrest Company uses a process-costing system. The company manufactures a product that is processed in two departments: A and B. As work is completed, it is transferred out. All inputs are added unif...

Q: Borques Company produces and sells wooden pallets that are used for moving

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 ………...

Q: Refer to the information for Farnsworth Company (p. 139)

Refer to the information for Farnsworth Company (p. 139) for the first 10 months of data on receiving orders and receiving cost. Now suppose that Tracy has gathered 2 more months of data: Note: For...

Q: Refer to Problem 6-65. Required:

Refer to Problem 6-65. Required: 1. Using the FIFO method, prepare the following for Department A: (a) a physical flow schedule, (b) an equivalent unit calculation, (c) calculation of unit costs (Not...

Q: Louise McDermott, controller for the Galvin plant of Veromar Inc.,

Louise McDermott, controller for the Galvin plant of Veromar Inc., wanted to determine the cost behavior of moving materials throughout the plant. She accumulated the following data on the number of m...

Q: Zanda Drug Corporation buys three chemicals that are processed to produce two

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 2 to 3...

Q: AudioMart is a retailer of radios, stereos, and televisions.

AudioMart is a retailer of radios, stereos, and televisions. The store carries two portable sound systems that have radios, tape players, and speakers. System A, of slightly higher quality than System...

Q: The maternity wing of the city hospital has two types of patients

The maternity wing of the city hospital has two types of patients: normal and cesarean. The standard quantities of labor and materials per delivery for 20X1 are: The standard price paid per pound of...

Q: Phono Company manufactures a plastic toy cell phone. The following standards

Phono Company manufactures a plastic toy cell phone. The following standards have been established for the toy’s materials and labor inputs: During the first week of July, the comp...

Q: Botella Company produces plastic bottles. The unit for costing purposes is

Botella Company produces plastic bottles. The unit for costing purposes is a case of 18 bottles. The following standards for producing one case of bottles have been established: Direct materials (4 l...

Q: Fresh Foods, a large restaurant chain, needs to determine if

Fresh Foods, a large restaurant chain, needs to determine if it would be cheaper to produce 5,000 units of its main food ingredient for use in its restaurants or to purchase them from an outside suppl...

Q: Rocket Motors manufactures stern drive engines for pleasure craft boats. Rocket’s

Rocket Motors manufactures stern drive engines for pleasure craft boats. Rocket’s management is concerned about increasing competition in its industry, resulting from a very large in...

Q: Stylz Company, a recent start-up fashion retailer based in

Stylz Company, a recent start-up fashion retailer based in the United States, is deciding between opening its first sales presence in either Italy’s Tuscany Region or Spain’s Matarrana Region. Stylz’s...

Q: Dorsey Scott MU Company manufactures and bottles a collection of health-

Dorsey Scott MU Company manufactures and bottles a collection of health-oriented fruity beverages. Dorsey’s CFO, Rozella, recently signed a series of new contracts with several dozen large universitie...

Q: Danna Wise, president of Tidwell Company, recently returned from a

Danna Wise, president of Tidwell Company, recently returned from a conference on quality and productivity. At the conference, she was told that many American firms have quality costs totaling 20 to 30...

Q: In 20X2, Clarkson Inc. initiated a full-scale,

In 20X2, Clarkson Inc. initiated a full-scale, quality improvement program. At the end of the year, Tony Ming, the president, noted with some satisfaction that the defects per unit of product had drop...

Q: In 20X1, Don Blackburn, president of Price Electronics, received

In 20X1, Don Blackburn, president of Price Electronics, received a report indicating that quality costs were 31% of sales. Faced with increasing pressures from imported goods, Don resolved to take mea...

Q: Brasher Company is transitioning to a lean manufacturing system and has just

Brasher Company is transitioning to a lean manufacturing system and has just finalized two order fulfillment value streams. One of the value streams has two products, and the other has four products....

Q: Merkley Company, a manufacturer of machine parts, implemented lean manufacturing

Merkley Company, a manufacturer of machine parts, implemented lean manufacturing at the end of 20X1. Three value streams were established: one for new product development and two order fulfillment val...

Q: Paladin Company manufactures plain paper fax machines in a small factory in

Paladin Company manufactures plain paper fax machines in a small factory in Minnesota. Sales have increased by 50% in each of the past 3 years, as Paladin has expanded its market from the United State...

Q: Custom Shutters, Inc., manufactures plantation shutters according to customer order

Custom Shutters, Inc., manufactures plantation shutters according to customer order. The company has a reputation for producing excellent quality shutters that fit virtually any size or shape of windo...

Q: When a company participates in a stock buyback program, it means

When a company participates in a stock buyback program, it means that the company is buying shares of its own stock and taking them off the market. With this simple definition in mind, how would a com...

Q: You have just opened your own printing business. A large sports

You have just opened your own printing business. A large sports franchise is beginning an important advertising campaign in order to attract more fans to the sport. The purchasing officer of the compa...

Q: Refer to the information for Booth Manufacturing above. Required

Refer to the information for Booth Manufacturing above. Required: 1. Calculate the cash flows from operations using the indirect method. 2. Prepare a statement of cash flows. 3. Search the Internet t...

Q: The following balance sheets are taken from the records of Golding Company

The following balance sheets are taken from the records of Golding Company (numbers are expressed in thousands): Additional information is as follows: (a) equipment costing $10,000,000 was purchased...

Q: Grammatico Company has just completed its third year of operations. The

Grammatico Company has just completed its third year of operations. The income statement is as follows: Selected information from the balance sheet is as follows: Required: Note: Round answers to...

Q: Refer to the information for Kepler Company above. Required

Refer to the information for Kepler Company above. Required: Note: Round all percentages to one decimal place. 1. Compute the percentage change for each item in the balance sheet and income statement...

Q: Refer to the information for Kepler Company on the previous page.

Refer to the information for Kepler Company on the previous page. Also, assume that for last year and for the current year, the market price per share of common stock is $2.98. In addition, for last y...

Q: Leslie Blandings, division manager of Audiotech Inc., was debating the

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 sever...

Q: Knitpix Products is a division of Parker Textiles Inc. During the

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 hav...

Q: What is the difference between inherent risk and residual risk?

What is the difference between inherent risk and residual risk?

Q: The use and importance of managerial accounting is growing in each of

The use and importance of managerial accounting is growing in each of the following areas except for a. enterprise risk management. b. nanotechnology advancements. c. corporate sustainability reportin...

Q: Describe the two-stage process associated with plantwide overhead rates.

Describe the two-stage process associated with plantwide overhead rates.

Q: What is product diversity?

What is product diversity?

Q: Lean manufacturing seeks to achieve all of the following except for

Lean manufacturing seeks to achieve all of the following except for a. zero defects. b. maximizing customer value. c. zero inventories. d. waiting. When materials costs differ significantly among pro...

Q: What is underapplied overhead? When Cost of Goods Sold is adjusted

What is underapplied overhead? When Cost of Goods Sold is adjusted for underapplied overhead, will the cost increase or decrease? Why?

Q: What is overapplied overhead? When Cost of Goods Sold is adjusted

What is overapplied overhead? When Cost of Goods Sold is adjusted for overapplied overhead, will the cost increase or decrease? Why?

Q: The use and importance of managerial accounting is growing in each of

The use and importance of managerial accounting is growing in each of the following areas except for a. enterprise risk management. b. nanotechnology advancements. c. corporate sustainability reportin...

Q: What is a segment?

What is a segment?

Q: Why are units shipped used to calculate the value-stream cost

Why are units shipped used to calculate the value-stream cost?

Q: An advantage of the scattergraph method is that it a.

An advantage of the scattergraph method is that it a. is objective. b. is easier to use than the high-low method. c. is the most accurate method. d. removes outliers. e. is descriptive

Q: Jack Man Company produces die-cast metal bulldozers for toy shops

Jack Man Company produces die-cast metal bulldozers for toy shops. Jack Man estimated the following average costs per bulldozer: Direct materials …………………………………………..$8.65 Direct labor …………………………………………...

Q: Define forensic accounting.

Define forensic accounting.

Q: Refer to the information for Hickory Company above. Hickory’s management is

Refer to the information for Hickory Company above. Hickory’s management is deciding whether to keep or drop the parquet product line. Hickory’s parquet flooring pr...

Q: Define the fraud triangle.

Define the fraud triangle.

Q: The percentage of accounts receivable that is uncollectible can be ignored for

The percentage of accounts receivable that is uncollectible can be ignored for cash budgeting because a. no cash is received from an account that defaults. b. it is included in cash sales. c. it appea...

Q: Select the graph (A through L) that best matches the

Select the graph (A through L) that best matches the numbered (1 through 7) italicized descriptions of various cost behavior. For each graph, the vertical (y) axis represents total dollars of cost, an...

Q: A fire insurance policy on a manufacturing plant is an example of

A fire insurance policy on a manufacturing plant is an example of a risk reduction alternative that would reduce which component of the inherent risk of a plant fire? a. Likelihood only b. Impact only...

Q: Cooper Movie Studio Corp. makes movies and is interested in lowering

Cooper Movie Studio Corp. makes movies and is interested in lowering its operating costs for the following year, while maintaining the high quality and appeal of its movies. Cooper’s...

Q: Refer to the information for Zapato Company given above.

Refer to the information for Zapato Company given above. Required: 1. Calculate the consumption ratios for the four drivers (round to two decimal places). 2. Is there evidence of product diversity? E...

Q: Gardner Company produces 18-ounce boxes of a wheat cereal in

Gardner Company produces 18-ounce boxes of a wheat cereal in three departments: mixing, cooking, and packaging. During August, Gardner produced 250,000 boxes with the following costs: Required: 1. C...

Q: Perkins National Bank has collected the following information for four activities and

Perkins National Bank has collected the following information for four activities and two types of credit cards: There are 7,500 holders of Classic cards and 30,000 holders of Gold cards. Required:...

Q: Snow Inc. has just completed development of a new cell phone

Snow Inc. has just completed development of a new cell phone. The new product is expected to produce annual revenues of $1,400,000. Producing the cell phone requires an investment in new equipment, co...

Q: Sleepeze Company produces mattresses for 20 retail outlets. Of the 20

Sleepeze Company produces mattresses for 20 retail outlets. Of the 20 retail outlets, 19 are small, separately owned furniture stores and one is a retail chain. The retail chain buys 60% of the mattre...

Q: Clearsound uses Alpha Electronics and La Paz Company to buy two electronic

Clearsound uses Alpha Electronics and La Paz Company to buy two electronic components used in the manufacture of its cell phones: Component 125X and Component 30Y. Consider two activities: testing com...

Q: Manzer Inc. manufactures bicycle frames in two departments: cutting and

Manzer Inc. manufactures bicycle frames in two departments: cutting and welding. Manzer uses the weighted average method. Manufacturing costs are added uniformly throughout the process. The following...

Q: Rath Company provided the following information: Standard variable

Rath Company provided the following information: Standard variable overhead rate (SVOR) per direct labor hour ……$3.75 Actual variable overhead costs……………………………………………….$222,816 Actual direct labor ho...

Q: Refer to the information for Aztec Inc. on the previous page

Refer to the information for Aztec Inc. on the previous page. Required: 1. Calculate the equivalent units for July. 2. Calculate the unit cost. (Note: Round to two decimal places.) 3. Assign costs to...

Q: Why should the incremental cost of a risk response alternative be considered

Why should the incremental cost of a risk response alternative be considered when deciding how best to respond to an important risk?

Q: Bradshaw Company provided the following data: Standard fixed

Bradshaw Company provided the following data: Standard fixed overhead rate (SFOR) ……………$5 per direct labor hour Actual fixed overhead costs …………………………………………………$301,680 Standard hours allowed per uni...

Q: Refer to the information above for Tico Inc. on the previous

Refer to the information above for Tico Inc. on the previous page Required: Calculate the labor rate and efficiency variances using the columnar and formula approaches.

Q: Hunt Inc. intends to invest in one of two competing types

Hunt Inc. intends to invest in one of two competing types of computer-aided manufacturing equipment: CAM X and CAM Y. Both CAM X and CAM Y models have a project life of 10 years. The purchase price of...

Q: Whitley Company had total sales of $1,000,000

Whitley Company had total sales of $1,000,000 for the year ending 20X1. The costs of quality are given below. Returns/allowances ……………………………….………$50,000 Design changes ……………………………………………….60,000 Proto...

Q: Norris Company implemented a quality improvement program and tracked the following for

Norris Company implemented a quality improvement program and tracked the following for the 5 years: By cost category as a percentage of sales for the same period of time: Required: 1. Prepare a ba...

Q: Mabbut Company has the following departmental manufacturing layout for one of its

Mabbut Company has the following departmental manufacturing layout for one of its plants: Cutting A consulting firm recommended a value stream with the following manufacturing cell: Required: 1....

Q: During the week of May 10, Hyrum Manufacturing produced and shipped

During the week of May 10, Hyrum Manufacturing produced and shipped 16,000 units of its aluminum wheels: 4,000 units of Model A and 12,000 units of Model B. The cycle time for Model A is 1.09 hours an...

Q: Swasey Company provided the following partial comparative balance sheets and the income

Swasey Company provided the following partial comparative balance sheets and the income statement for 20X2 Required: Compute operating cash flows using the indirect method.

Q: Tidwell Company has provided the following partial comparative balance sheets and the

Tidwell Company has provided the following partial comparative balance sheets and the income statement for 20X2. Required: Compute operating cash flows using the direct method.

Q: Chillmax Company plans to sell 3,500 pairs of shoes at

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...

Q: How is business sustainability different from environmental sustainability?

How is business sustainability different from environmental sustainability?

Q: Suppose that Chillmax Company now sells both pairs of shoes and fabric

Suppose that Chillmax Company now sells both pairs of shoes and fabric carryalls. The pairs of shoes are priced at $60 and have variable costs of $21 each. The carryalls are priced at $36 and have var...

Q: Coed Scents, a national producer of young adult perfumes and colognes

Coed Scents, a national producer of young adult perfumes and colognes, needs to determine if it would be cheaper to produce 100,000 bottles of its most popular perfume, Two AM, for sale in its college...

Q: Rabbit Foot Motors has been approached by a new customer with an

Rabbit Foot Motors has been approached by a new customer with an offer to purchase 5,000 units of its hands-free, Wi-Fi-enabled automotive model—the SMAK—at a price of $18,000 per automobile. Rabbit F...

Q: Refer to the information for Mullett Marina above. Mullett’s management is

Refer to the information for Mullett Marina above. Mullett’s management is deciding whether to keep or drop the Boat Maintenance service line. Mullett’s Boat Mainte...

Q: Refer to the information for Mullett Marina above. Relevant fixed costs

Refer to the information for Mullett Marina above. Relevant fixed costs associated with this line include 60% of Boat Maintenance’s garage/warehouse rent and 50% of Boat Maintenance&...

Q: Bart’s Butters receives 1,000,000 containers of raw milk

Bart’s Butters receives 1,000,000 containers of raw milk each period that it subsequently processes into consumable milk by adjusting the fat content, adding vitamins, and destroying any potentially h...

Q: Refer to the information for Relax Spas above. Assume that there

Refer to the information for Relax Spas above. Assume that there are no other constraints. Required: 1. What is the contribution margin per hour of masseuse time for each type of massage? 2. What is...

Q: Refer to the information for Relax Spas above. Assume that a

Refer to the information for Relax Spas above. Assume that a maximum of 8,000 massages of each type can be sold. Required: 1. What is the contribution margin per hour of masseuse time for each type o...

Q: Tulum Inc. makes a Mexican chocolate mix sold in 4-

Tulum Inc. makes a Mexican chocolate mix sold in 4-pound boxes. Planned production in units for the first 3 months of the coming year is: January ……………………….24,700 February ……………………..22,000 March ………...

Q: Mulliner Company showed the following information for the year:

Mulliner Company showed the following information for the year: Standard variable overhead rate (SVOR) per direct labor hour ……$3.50 Standard hours (SH) allowed per unit ………………………………………………3 Actual pr...

Q: Explain how performance measurement can help improve an organization’s business sustainability efforts

Explain how performance measurement can help improve an organization’s business sustainability efforts.

Q: Aretha Company provided the following information: Standard variable

Aretha Company provided the following information: Standard variable overhead rate (SVOR) per direct labor hour ….$4.70 Actual variable overhead costs …………………………………………….$335,750 Actual direct labor...

Q: Talmage Inc. has just completed development of a new printer.

Talmage Inc. has just completed development of a new printer. The new product is expected to produce annual revenues of $2,700,000. Producing the printer requires an investment in new equipment costin...

Q: Techno Inc. intends to invest in one of two competing types

Techno Inc. intends to invest in one of two competing types of flexible manufacturing systems: FLEX-1K and FLEX-2Z. Both systems have a project life of 10 years. The purchase price of the FLEX-1K syst...

Q: Palakiko’s Fish Taco Hut is a small start-up restaurant in

Palakiko’s Fish Taco Hut is a small start-up restaurant in Hanalei. Palakiko recently completed an online risk management course and has identified food safety as his restaurant&acir...

Q: Loring Company had total sales of $2,400,000

Loring Company had total sales of $2,400,000 for fiscal 20X1. The costs of quality-related activities are given below. Discounts due to defects ………………….…..$100,000 Retesting ……………………………………………..30,000...

Q: Pintura Company implemented a quality improvement program and tracked the following for

Pintura Company implemented a quality improvement program and tracked the following for the five years: By cost category as a percentage of sales for the same period of time: Required: 1. Prepare...

Q: Gumbrecht Company has the following departmental manufacturing layout for one of its

Gumbrecht Company has the following departmental manufacturing layout for one of its plants: A consulting firm has recommended a value stream with the following manufacturing cell: Required: 1. Ca...

Q: During the week of August 21, Parley Manufacturing produced and shipped

During the week of August 21, Parley Manufacturing produced and shipped 4,000 units of its machine tools: 1,500 units of Tool SK1 and 2,500 units of Tool SK3. The cycle time for SK1 is 0.73 hour, and...

Q: Belnap Company has provided the following partial comparative balance sheets and the

Belnap Company has provided the following partial comparative balance sheets and the income statement for 20X2. Required: Compute operating cash flows using the direct method.

Q: Refer to the information for Theta Company on the previous page.

Refer to the information for Theta Company on the previous page. The actual cycle time for Theta Company is 3.2 minutes, and the theoretical cycle time is 3 minutes. Required: 1. Calculate the amount...

Q: Identify and discuss the four kinds of quality costs.

Identify and discuss the four kinds of quality costs.

Q: Kleenaire Motors manufactures hybrid sports utility vehicles (SUVs). Kleenaire incurs

Kleenaire Motors manufactures hybrid sports utility vehicles (SUVs). Kleenaire incurs monthly depreciation costs of $10,000,000 on its highly automated plant machinery and warehousing facility. Also,...

Q: Refer to the information for Speedy Pete’s above. Speedy Pete’s controller

Refer to the information for Speedy Pete’s above. Speedy Pete’s controller wants to calculate the fixed and variable costs associated with its cutting-edge delivery...

Q: Chillmax Company plans to sell 3,500 pairs of shoes at

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,...

Q: Refer to the information for Speedy Pete’s on the previous page.

Refer to the information for Speedy Pete’s on the previous page. Assume that this information was used to construct the following formula for monthly delivery cost. Total Delivery Co...

Q: Refer to the information for Speedy Pete’s on the previous page.

Refer to the information for Speedy Pete’s on the previous page. Coefficients shown by a regression program for Speedy Pete’s data are: Intercept â€&br...

Q: Refer to the data for Pelham Company on the previous page.

Refer to the data for Pelham Company on the previous page. Required: 1. How many units are in ending inventory? 2. Using absorption costing, calculate the per-unit product cost. 3. What is the value...

Q: Refer to the information for Jonson Company above. Jonson uses departmental

Refer to the information for Jonson Company above. Jonson uses departmental overhead rates. In the firing department, overhead is applied on the basis of kiln hours (number of hours spent in the gas-f...

Q: Refer to the information for Cinturas Company given above.

Refer to the information for Cinturas Company given above. Required: 1. Calculate the consumption ratios for the four drivers. 2. Is there evidence of product diversity? Explain. Data for Exercise 2...

Q: At the beginning of March, Mendez Company had two jobs in

At the beginning of March, Mendez Company had two jobs in process, Job 86 and Job 87, with the following accumulated cost information: During March, two more jobs (88 and 89) were started. The follo...

Q: Refer to the information for Sanjay Company above. Required

Refer to the information for Sanjay Company above. Required: 1. Calculate the cost assignment ratios to be used under the direct method for Departments S1 and S2. (Note: Each support department will...

Q: Discuss the benefits of quality cost reports that simply list the quality

Discuss the benefits of quality cost reports that simply list the quality costs for each category.

Q: Refer to the information for Sanjay Company on the previous page.

Refer to the information for Sanjay Company on the previous page. Now assume that Sanjay uses the sequential method to allocate support department costs. S1 is allocated first, then S2. Required: 1....

Q: Community Credit Union has collected the following information for four activities and

Community Credit Union has collected the following information for four activities and two types of credit cards: There are 12,500 holders of Silver cards and 50,000 holders of Premium cards. Requi...

Q: Limpio Company produces dishwashers for 36 retail outlets. Of the 36

Limpio Company produces dishwashers for 36 retail outlets. Of the 36 retail outlets, 34 are small, separately owned appliance stores and two are large retail chains. The two large retailers buy 80% of...

Q: Blackburn Inc. uses Otavalo Manufacturing and Piura Company to buy two

Blackburn Inc. uses Otavalo Manufacturing and Piura Company to buy two precision- machined parts used in the manufacture of its permanent-magnet motors: Part #625 and Part #827. Consider two activitie...

Q: Teslum Inc. has a number of divisions, including the Machina

Teslum Inc. has a number of divisions, including the Machina Division, a producer of high-end espresso makers, and the Java Division, a chain of coffee shops. Machina Division produces the EXP-100 mod...

Q: Refer to the information for Theta Company above. Required

Refer to the information for Theta Company above. Required: Compute the (1) theoretical cycle time (in minutes), (2) actual cycle time (in minutes), (3) theoretical velocity in units per hour, and (4...

Q: Refer to the information for Jasmine Company above. Required

Refer to the information for Jasmine Company above. Required: Prepare common-size income statements by using net sales as the base. (Note: Round answers to the nearest whole percentage.) Data for Ex...

Q: Refer to the information for Toby’s on the previous page.

Refer to the information for Toby’s on the previous page. Required: Note: Round answers to one decimal place. 1. Calculate the average inventory. 2. Calculate the inventory turnover...

Q: Refer to the information for Jasmine Company above. Required

Refer to the information for Jasmine Company above. Required: Prepare common-size income statements by using Year 1 as the base period. (Note: Round answers to the nearest whole percentage.) Data f...

Q: Manny Carson, certified management accountant and controller of Wakeman Enterprises,

Manny Carson, certified management accountant and controller of Wakeman Enterprises, has been given permission to acquire a new computer and software for the company’s accounting system. The capital i...

Q: Under the weighted average method, how are prior-period costs

Under the weighted average method, how are prior-period costs and output treated? How are they treated under the FIFO method?

Q: Shaftel Ready Mix is a processor and supplier of concrete, aggregate

Shaftel Ready Mix is a processor and supplier of concrete, aggregate, and rock products. The company operates in the intermountain western United States. Currently, Shaftel has 14 cement-processing pl...

Q: The comparative balance sheets and income statement of Piura Manufacturing follow.

The comparative balance sheets and income statement of Piura Manufacturing follow. Additional transactions for 20X2 were as follows: a. Cash dividends of $8,000 were paid. b. Equipment was acqui...

Q: Gateway Construction Company, run by Jack Gateway, employs 25 to

Gateway Construction Company, run by Jack Gateway, employs 25 to 30 people as subcontractors for laying gas, water, and sewage pipelines. Most of Gateway’s work comes from contracts...

Q: Luna Company is a printing company and a subsidiary of a large

Luna Company is a printing company and a subsidiary of a large publishing company. Luna is in its fourth year of a 5-year, quality improvement program. The program began in 20X1 as a result of a repor...

Q: Lindell Manufacturing embarked on an ambitious quality program that is centered on

Lindell Manufacturing embarked on an ambitious quality program that is centered on continual improvement. This improvement is operationalized by declining quality costs from year to year. Lindell rewa...

Q: Artistic Woodcrafting Inc. began several years ago as a one-

Artistic Woodcrafting Inc. began several years ago as a one-person, cabinet-making operation. Employees were added as the business expanded. Last year, sales volume totaled $850,000. Volume for the fi...

Q: Corporate sustainability reports vary greatly across companies and industries. Select two

Corporate sustainability reports vary greatly across companies and industries. Select two companies that interest you and conduct an online search to find their corporate sustainability report. (If on...

Q: Paterson Company,* a U.S.-based company, manufactures

Paterson Company,* a U.S.-based company, manufactures and sells electronic components worldwide. Virtually all its manufacturing takes place in the United States. The company has marketing divisions t...

Q: The controller of Ashton Company prepared the following projected income statement:

The controller of Ashton Company prepared the following projected income statement: Sales ……………………………………………………..$88,000 Total variable cost ……………………………………23,760 Contribution margin ………………………………$64,24...

Q: At the beginning of the year, Han Company estimated the following

At the beginning of the year, Han Company estimated the following: Overhead ………………………………….$582,400 Direct labor hours ………………………….80,000 Han uses normal costing and applies overhead on the basis of d...

Q: What is a focused value stream?

What is a focused value stream?

Q: Suppose that a surgical ward has gathered the following information for four

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 cat...

Q: Examine the graphs in Exercise 3-40. Required

Examine the graphs in Exercise 3-40. Required: As explained in the chapter, cost behavior patterns can be described as fixed, variable, semi- variable, mixed, or step function (i.e., semi-fixed) in n...

Q: Suppose that Stillwater Designs has two classes of distributors: JIT distributors

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 plac...

Q: Bowman Company manufactures cooling systems. Bowman produces all the parts necessary

Bowman Company manufactures cooling systems. Bowman produces all the parts necessary for its product except for one electronic component, which is purchased from two local suppliers: Manzer Inc. and B...

Q: Wellington Chocolate Company uses activity-based costing (ABC). The

Wellington Chocolate Company uses activity-based costing (ABC). The controller identified two activities and their budgeted costs: Setting up equipment ……&acir...

Q: The blending department had the following data for the month of March

The blending department had the following data for the month of March Units in BWIP…………………………………………………….— Units completed…………………………………………..21,600 Units in EWIP (60% complete)………………………2,250 Total manu...

Q: Information on four independent companies follows. Calculate the correct amount for

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...

Q: Refer to the information for Fly High Airlines above.

Refer to the information for Fly High Airlines above. Required: Use the high-low method to answer the following questions. 1. What is the variable rate for airplane depreciation? The fixed cost? 2. W...

Q: Refer to the information for Cherry Blossom Products on the previous page

Refer to the information for Cherry Blossom Products on the previous page. Suppose that in the coming year, the company plans to produce an extra-thick yoga mat for sale to health clubs. The company e...

Q: Tristar Manufacturing produces two types of battery-operated toy soldiers:

Tristar Manufacturing produces two types of battery-operated toy soldiers: infantry and special forces. The soldiers are produced by using one continuous process. Four activities have been identified:...

Q: A company has the following collection pattern: month of sale,

A company has the following collection pattern: month of sale, 40%; month following sale, 60%. If credit sales for January and February are $100,000 and $200,000, respectively, the cash collections fo...

Q: Refer to the information for Slap shot Company above.

Refer to the information for Slap shot Company above. Required: Prepare an income statement for Slap shot for the month of June and calculate the percentage of sales revenue represented by each line...

Q: Refer to the information for Grin Company above. Required

Refer to the information for Grin Company above. Required: 1. What was the total product cost in January? 2. What was the product cost per unit in January? Data for Exercise 41: Grin Company manufa...

Q: Refer to the information for Grin Company above. Required

Refer to the information for Grin Company above. Required: 1. What was the total prime cost in January? 2. What was the prime cost per unit in January? 3. What was the total conversion cost in Januar...

Q: Linsenmeyer Company produces a common machine component for industrial equipment in three

Linsenmeyer Company produces a common machine component for industrial equipment in three departments: molding, grinding, and finishing. The following data are available for September: During Septem...

Q: Refer to the information for Cherry Blossom Products on the previous page

Refer to the information for Cherry Blossom Products on the previous page. Required: 1. What is the sales mix of DVDs and equipment sets? 2. Compute the break-even quantity of each product. Data for...

Q: Refer to the information for Lauren Ashley above. Required

Refer to the information for Lauren Ashley above. Required: 1. What was the cost of direct materials used in September? 2. What was the total manufacturing cost in September? 3. What was the cost of...

Q: Refer to the information for Lauren Ashely Company above.

Refer to the information for Lauren Ashely Company above. Required: What was the cost of goods sold for September? Data for Exercise 46: In September, Lauren Ashley Company purchased materials cost...

Q: Prull Company, a job-order costing firm, worked on

Prull 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 $10 per machine hour. By July 31, Jobs 86 and 88 were complet...

Q: The following information was obtained for the grinding department of Harlan Company

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%...

Q: Mino Inc. manufactures chocolate syrup in three departments: cooking,

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...

Q: H. Banks Company would like to design, produce, and

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 br...

Q: All star Exposure designs and sells advertising services to small, relatively

All star Exposure designs and sells advertising services to small, relatively unknown companies. Last month, All star had sales commissions costs of $50,000, technology costs of $75,000, and research...

Q: Refer to the information regarding Stillwater Designs on the previous page.

Refer to the information regarding Stillwater Designs on the previous page. Stillwater Designs needs a production budget for each product (representing the amount that must be outsourced to manufactur...

Q: Peanut Land Inc. produces all-natural organic peanut butter.

Peanut Land Inc. produces all-natural organic peanut butter. The peanut butter is sold in 12-ounce jars. The sales budget for the first 4 months of the year is as follows: Company policy requires...

Q: Refer to the information regarding Stillwater Designs above. Required

Refer to the information regarding Stillwater Designs above. Required: 1. Prepare a sales budget for each quarter of 20X1 and for the year in total. Show sales by product and in total for each time p...

Q: Langer Company produces plastic items, including plastic housings for humidifiers.

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 sh...

Q: Match each term in Column A with its related definition in Column

Match each term in Column A with its related definition in Column B. Column A 1. Maquiladora 2. Import 3. Joint venture 4. Export 5. MNC Column B a. A company that does business in more than one...

Q: Match each term in Column A with its related definition in Column

Match each term in Column A with its related definition in Column B. Column A 1. Spot rate 2. Currency appreciation 3. Translation risk 4. Transaction risk 5. Exchange rate Column B a. The rate a...

Q: Kamber, Inc., owns a factory located close to, but

Kamber, Inc., owns a factory located close to, but not inside, a foreign trade zone. The plant imports volatile chemicals that are used in the manufacture of chemical reagents for laboratories. Each y...

Q: At the beginning of the year, Lopez Company had the following

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) ………………………….$11.20 Direct labor (2 hrs. @ $18.00)...

Q: Refer to Exercise 13-48. Suppose that Kamber is considering

Refer to Exercise 13-48. Suppose that Kamber is considering building a new plant inside a foreign trade zone to replace its chemical manufacturing plant. Required: 1. How much duty will be paid per y...

Q: Consider the following independent events: a. Gain on sale

Consider the following independent events: a. Gain on sale of an asset b. Increase in accounts receivable c. Decrease in prepaid insurance d. Amortization expense e. Increase in accounts payable f. U...

Q: Lemmons Inc. has the following two activities: (1)

Lemmons Inc. has the following two activities: (1) Retesting reworked products, cost: $720,000. The retesting cost of the most efficient competitor is $225,000. (2) Welding subassemblies, cost: $1,350...

Q: Jordan Company provided the following information: Current assets:

Jordan Company provided the following information: Current assets: Cash …………………………………….……….$12,450,000 Accounts receivable …………………………..8,740,000 Inventories ………………………………………..8,150,000 Total current a...

Q: Montalcino Company had net sales of $54,000,000

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...

Q: Whalen Company had net sales of $125,500,250

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 t...

Q: Khaling Company sold 19,000 units last year at $18

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. Calculat...

Q: Refer to the information for Booth Manufacturing above. Required

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 financi...

Q: Refer to the information for Rosie-Lee Company above.

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 f...

Q: Refer to the information for Rosie-Lee Company above.

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 prepa...

Q: The income statement for Mendelin Corporation is as follows:

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 acco...

Q: The following selected information is taken from the financial statements of Arnn

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 Accou...

Q: Folsom Company manufactures specialty tools to customer order. There are three

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...

Q: Kolby Company takes 36,000 hours to produce 144,000

Kolby Company takes 36,000 hours to produce 144,000 units of a product. Required: What is the velocity? Cycle time?

Q: Refer to the information for Alfombra Inc. on the previous page

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...

Q: Refer to the information for Kepler Company on the previous page.

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 perce...

Q: At the beginning of the year, Smith Company budgeted overhead of

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...

Q: MedServices Inc. is divided into two operating departments: Laboratory and

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 th...

Q: Bender Automotive Works Inc. manufactures a variety of front-end

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 surroun...

Q: Allison Manufacturing produces a subassembly used in the production of jet aircraft

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...

Q: Willison Company produces stuffed toy animals; one of these is Betty

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...

Q: Swasey Company provided the following information: /

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.

Q: Payson Manufacturing is considering an investment in a new automated manufacturing system

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 o...

Q: Uchdorf Company invested $9,000,000 in a new

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, $1,2...

Q: McCourt Company produces small engines for lawnmower producers. The accounts payable

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...

Q: Andresen Company had the following quality costs for the years ended June

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 catego...

Q: Lisun Company produces a variety of gardening tools and aids. The

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...

Q: Swasey Company earned net income of $1,800,000

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.

Q: On March 1, Friedle Import-Export Company purchased merchandise costing

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 ………………...

Q: Refer to the information provided in Brief Exercises 14-19,

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...

Q: During 20X2, Norton Company had the following transactions: a

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. Th...

Q: Richins Company produces automobile engine parts. The company is examining the

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...

Q: Cassara, Inc., had the following quality costs for the years

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 cate...

Q: Roberts Company provided the following information: /

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.

Q: During 20X2, Evans Company had the following transactions: a

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 l...

Q: Refer to the information for Aztec Inc. on the previous page

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 o...

Q: On March 1, Friedle Import-Export Company sells merchandise costing

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 ……………...

Q: Roberts Company provided the following partial comparative balance sheets and the income

Roberts Company provided the following partial comparative balance sheets and the income statement for 20X2. Required: Compute operating cash flows using the indirect method.

Q: Roberts Company earned net income of $450,000 in 20X2

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.

Q: Refer to the information provided in Brief Exercises 14-27,

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 stat...

Q: Refer to the information for Barnard Manufacturing on the previous page.

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. D...

Q: Refer to the information for Barnard Manufacturing on the previous page.

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 Ma...

Q: During the last 2 years of operations, Lelkes Company had the

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 o...

Q: Folsom Advertising, Inc. is considering an investment in a new

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) t...

Q: Cannon Company invested $8,000,000 in a new

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,...

Q: During the year, Roberts Company sold equipment with a book value

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...

Q: Frankle Manufacturing produces cylinders used in internal combustion engines. During June

Frankle Manufacturing produces cylinders used in internal combustion engines. During June, Frankle’s welding department had the following data: Units in BWIP…………………………………………………………..— Units completed...

Q: LoLo Lemon Company has current assets equal to $500,000

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 liabilit...

Q: Refer to the information for Toby’s on the previous page.

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...

Q: Alessandra Makeup Manufacturers provided the following income statement for last year:

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...

Q: Klynveld Company’s balance sheet shows total liabilities of $94,000

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 plac...

Q: Applegate Enterprises produces premier raspberry jam. Output is measured in pints

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 pr...

Q: Golding Inc. just finished its second month of operations. Golding

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%...

Q: Carter Inc. had the following production and cost information for its

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...

Q: During the last 2 years of operations, Haws Company had the

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 bo...

Q: Powers Inc. produces a protein drink. The product is sold

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 inven...

Q: Miel Company produces ready-to-cook oatmeal. Each carton

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...

Q: During the last 6 weeks, the actual costs of materials for

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....

Q: Refer to the information for Krumple Inc. above.

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...

Q: Refer to the information for Krumple Inc. above.

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 a...

Q: Refer to the information for Tico Inc. on the previous page

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 bot...

Q: Rath Company showed the following information for the year:

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 pr...

Q: Branch Company provided the following information: Standard fixed

Branch Company provided the following information: Standard fixed overhead rate (SFOR) per direct labor hour ……..$5.00 Actual fixed overhead ……………………………………………………….$305,000 BFO……………………………………………………………...

Q: During August, the drilling department of Arenal Inc. 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...

Q: Polson Enterprises produces strawberry gelato. Output is measured in quarts.

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,...

Q: Gorman Nurseries Inc. grows poinsettias and fruit trees in a green

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...

Q: Craig Inc. just finished its third month of operations. Craig

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, De...

Q: Washburn Inc. manufactures precision tools in two departments: molding and

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 fol...

Q: Ming Inc. had the following production and cost information for its

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....

Q: Vigor Inc. produces an energy drink. The product is sold

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 (...

Q: Chillmax Company plans to sell 3,500 pairs of shoes at

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,...

Q: Chillmax Company now sells both pairs of shoes and carryalls. Next

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...

Q: Chillmax Company plans to sell 3,500 pairs of shoes at

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...

Q: Chillmax Company plans to sell 3,500 pairs of shoes at

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...

Q: Chillmax Company had planned to sell 3,500 pairs of shoes

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 se...

Q: Kraft Bowlen owns two sports franchises—the Bladers (a hockey

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 commiss...

Q: Refer to the information for Barnard Manufacturing on the previous page.

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) retur...

Q: Enviro Consulting Firm provides various environmental consulting services to organizations. Enviro

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 n...

Q: Sisters, Inc. manufactures professional-level printers that perform multiple

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 o...

Q: Tulum Inc. sells powdered Mexican chocolate to restaurants. Its basic

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 c...

Q: Tulum Inc. makes a Mexican chocolate mix. In the first

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...

Q: Tulum Inc. makes a Mexican chocolate mix. Planned production in

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...

Q: Tulum Inc. makes a Mexican chocolate mix. Budgeted direct labor

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 ………………………………….12,20...

Q: Lazlo Company manufactures a line of table lamps. Each lamp takes

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 lab...

Q: Lazlo Company manufactures a line of table lamps. Each lamp takes

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 dire...

Q: Elwood Company makes and sells plastic trash bags. In the coming

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 admini...

Q: Jameson Company provided the following information for the coming year:

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 pric...

Q: During the year, Swasey Company sold equipment with a book value

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 b...

Q: Weiland and Company is a medical billing services firm. All sales

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 mont...

Q: Pilsner Inc. purchases raw materials on account for use in production

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 …………………...

Q: Oliver’s Bistro provided the following information for the month of October:

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 t...

Q: Balboa Company budgeted the following amounts: /

Balboa Company budgeted the following amounts: Required: Prepare a flexible budget for 4,000 units, 4,500 units, and 5,000 units.

Q: Balboa Company budgeted production of 4,500 units with the following

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...

Q: Dulce Company produces chocolate. Each pound of chocolate requires 400 cocoa

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 chocol...

Q: During the last 6 weeks, the actual costs of labor for

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....

Q: Refer to the information for Young Inc. above.

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-o...

Q: Refer to the information for Young Inc. above.

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 plast...

Q: Refer to the information for Ambient Inc. above.

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...

Q: Patrick Inc. sells industrial solvents in 5-gallon drums.

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...

Q: Refer to the information for Ambient Inc. above.

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 al...

Q: Potter Company provided the following information: /

Potter Company provided the following information: Required: Prepare a performance report that shows the variances for each variable overhead item (inspection and power).

Q: Bulger Company provided the following data: Standard fixed

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 ………...

Q: Corey Company provided the following information: Standard fixed overhead

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 ……...

Q: Chillmax Company plans to sell 3,500 pairs of casual shoes

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...

Q: Chillmax Company plans to sell 3,500 pairs of shoes at

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...

Q: Refer to the information for Speedy Pete’s above. Assume that this

Refer to the information for Speedy Pete’s above. Assume that this information was used to construct the following formula for monthly delivery cost. Total Delivery Cost = $41,850 +...

Q: Chillmax Company plans to sell 3,500 pairs of shoes at

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...

Q: At the beginning of the year, Estes Company estimated the following

At the beginning of the year, Estes Company estimated the following costs: Overhead ……………………………………..$450,000 Direct labor cost ……………………………..600,000 Estes uses normal costing and applies overhead o...

Q: At the end of the year, Estes Company provided the following

At the end of the year, Estes Company provided the following actual information: Overhead …………………………………$412,600 Direct labor cost …………………………532,000 Estes uses normal costing and applies overhead at...

Q: Refer to the information for Zapato Company given above. The following

Refer to the information for Zapato Company given above. The following activity data have been collected: Cutting …………&...

Q: Refer to the data for Pelham Company on the previous page.

Refer to the data for Pelham Company on the previous page. Required: 1. How many units are in ending inventory? 2. Using variable costing, calculate the per-unit product cost. 3. What is the value of...

Q: Refer to the data for Beyta Company above. Required

Refer to the data for Beyta Company above. Required: 1. Calculate the cost of goods sold under absorption costing. 2. Prepare an income statement using absorption costing. Data for Exercise 32: Dur...

Q: Refer to the data for Beyta Company above. Required

Refer to the data for Beyta Company above. Required: 1. Calculate the cost of goods sold under variable costing. 2. Prepare an income statement using variable costing. Data for Exercise 33: During...

Q: Refer to the information in Brief Exercise 4-31 for data

Refer to the information in Brief Exercise 4-31 for data. Now, assume that Jonson has decided to use a plant wide overhead rate based on direct labor hours. Required: 1. Calculate the predetermined p...

Q: Evans Inc. has the following two activities: (1)

Evans Inc. has the following two activities: (1) Reworking products, cost: $740,000. The reworking cost of the most efficient similar-sized competitor is $200,000. (2) Purchasing parts, cost: $900,000...

Q: Tara Company takes 8,000 hours to produce 40,000

Tara Company takes 8,000 hours to produce 40,000 units of a product. Required: What is the velocity? Cycle time?

Q: Refer to the information above for Cinturas Company. The following activity

Refer to the information above for Cinturas Company. The following activity data have been collected: Cutting …………&acir...

Q: Craig Company produces electronic components for cell phone producers. The receiving

Craig Company produces electronic components for cell phone producers. The receiving department at Craig has eight clerks who process incoming goods. The total cost of their salaries is $440,000. The...

Q: Refer to the information for Saludable Inc. above.

Refer to the information for Saludable Inc. above. Required: 1. Calculate the equivalent units for November. 2. Calculate the unit cost. (Note: Round to two decimal places.) 3. Assign costs to units...

Q: Refer to the information for Saludable Inc. above.

Refer to the information for Saludable Inc. above. Required: 1. Calculate the equivalent units for November. 2. Calculate the unit cost. (Note: Round to two decimal places.) 3. Assign costs to units...

Q: During April, the grinding department of Tranx Inc. completed and

During April, the grinding department of Tranx Inc. completed and transferred out 315,000 units. At the end of April, there were 112,500 units in process, 60% complete. Tranx incurred manufacturing co...

Q: Hardy Company produces 18-ounce boxes of a rolled oat cereal

Hardy Company produces 18-ounce boxes of a rolled oat cereal in three departments: mixing, cooking, and packaging. During September, Hardy produced 200,000 boxes with the following costs: Required:...

Q: Cardenas Pharmaceutical produces antibiotics. During April, Cardenas’s tableting department had

Cardenas Pharmaceutical produces antibiotics. During April, Cardenas’s tableting department had the following data: Units in BWIP……………………………………… — Units completed …………………………..105,000 Units in EWIP (3...

Q: Refer to the information for Morning Smiles Coffee Company above.

Refer to the information for Morning Smiles Coffee Company above. Required: 1. Calculate the total product cost for last week. 2. Calculate the per-unit cost of one coffee maker that was produced las...

Q: Refer to the information for Morning Smiles Coffee Company on the previous

Refer to the information for Morning Smiles Coffee Company on the previous page. Required: 1. Calculate the total prime cost for last week. 2. Calculate the per-unit prime cost. 3. Calculate the tota...

Q: Morning Smiles Coffee Company manufactures Stoneware French Press coffee makers. On

Morning Smiles Coffee Company manufactures Stoneware French Press coffee makers. On March 1, Morning Smiles had $25,000 of materials in inventory. During the month of March, the company purchased $350...

Q: Morning Smiles Coffee Company manufactures Stoneware French Press coffee makers. During

Morning Smiles Coffee Company manufactures Stoneware French Press coffee makers. During the month of March, the company purchased $350,000 of materials. Also during the month of March, Morning Smiles...

Q: Morning Smiles Coffee Company manufactures Stoneware French Press coffee makers. During

Morning Smiles Coffee Company manufactures Stoneware French Press coffee makers. During the month of March, 8,100 coffee makers were completed at a cost of goods manufactured of $607,500. Suppose that...

Q: Refer to the information for Morning Smiles Coffee Company on the previous

Refer to the information for Morning Smiles Coffee Company on the previous page. Required: Prepare an income statement for Morning Smiles for the month of March. Data for Question 32: Morning Smile...

Q: Refer to the information for Morning Smiles Coffee Company on the previous

Refer to the information for Morning Smiles Coffee Company on the previous page. Required: Prepare an income statement for Morning Smiles for the month of March and calculate the percentage of sales...

Q: Healing Hands Massage Hut offers high-end, specialized massages and

Healing Hands Massage Hut offers high-end, specialized massages and grooming services, including manicures, pedicures, facials, and full-body massages. Healing Hands is a new startup service organizat...

Q: Refer to the information for Slap shot Company on the previous page

Refer to the information for Slap shot Company on the previous page. Required: Prepare an income statement for Slap shot for the month of June. Data for Question 24: Slap shot Company makes ice hoc...

Q: Pelak Company had sales of $25,000,000,

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....

Q: Data follow for the Consumer Products Division of Kisler Inc.:

Data follow for the Consumer Products Division of Kisler Inc.: Required: 1. Compute the margin and turnover ratios for each year. 2. Compute the ROI for the Consumer Products Division for each year....

Q: The Avila Division of Maldonado Company had operating income last year of

The Avila Division of Maldonado Company had operating income last year of $136,400 and average operating assets of $1,900,000. Maldonado’s minimum acceptable rate of return is 9%. (Note: Round all ans...

Q: Barolo Company manufactures laptop stickers for Italian sports teams. Barolo’s risk

Barolo Company manufactures laptop stickers for Italian sports teams. Barolo’s risk management team has identified the company’s top five inherent risks and plans t...

Q: Spiro Hospital is investigating the possibility of investing in new dialysis equipment

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 inflo...

Q: Blaylock Company wants to buy a numerically controlled (NC) machine

Blaylock Company wants to buy a numerically controlled (NC) machine to be used in producing specially machined parts for manufacturers of tractors. The outlay required is $384,000. The NC equipment wi...

Q: Brunello Winery produces expensive wines. Brunello’s enterprise risk management team has

Brunello Winery produces expensive wines. Brunello’s enterprise risk management team has chosen its particular risk response to each of its top five inherent risks. The risk graph be...

Q: Tidwell Company experienced the following during 20X1: a. Sold

Tidwell Company experienced the following during 20X1: a. Sold preferred stock for $480,000. b. Declared dividends of $150,000 payable on March 1, 20X2. c. Borrowed $575,000 from a bank on a 2-year no...

Q: Loring Company incurred the following costs last year: /

Loring Company incurred the following costs last year: Required: 1. Classify each of the costs using the following table format. Be sure to total the amounts in each column. Example: Direct material...

Q: A factory manufactures jelly. The jars of jelly are packed six

A factory manufactures jelly. The jars of jelly are packed six to a box, and the boxes are sold to grocery stores. The following types of cost were incurred: Required: Classify each of the costs as...

Q: Pelak Company had sales of $25,000,000, expenses of $17,500,000, and

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

Q: Quillen Company manufactures a product in a factory that has

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, a...

Q: Cinturon Corporation produces high-quality leather belts. The company’s plant in

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...

Q: For the coming year, Paulson Computers Inc. expects to produce

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 overh...

Q: Spiro Hospital is investigating the possibility of investing in new

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 inflo...

Q: Information on four independent companies follows. Calculate the correct amount

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...

Q: Budgeted amounts for the year:

Budgeted amounts for the year:Materials ………………………………….. 2 leather strips @ $7.00Labor …………………….…………………………….. 1.5 hr. @ $18.00VOH ……………………………..………………………… 1.5 hr. @ $1.20FOH …………………………………………………………………… $...

Q: Oliver Company provided the following information for the years 2013

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

Q: Cherry Blossom Products Inc. produces and sells yoga-training products: how-to

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 an...

Q: Cherry Blossom Products Inc. produces and sells yoga-training products: how-to

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 an...

Q: During the past year, the high and low use of

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 n...

Q: Each of the following scenarios is independent. Assume that all

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...

Q: Bryce Company manufactures pet supplies. However, Bryce’s electronic accounting system

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...

Q: Leslie Blandings, division manager of Audiotech Inc., was debating the

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 sever...

Q: Texas-Q Company produces and sells barbeque grills. Texas-Q sells three

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...

Q: The income statement for Piura Merchandising Corporation is as follows:

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,...

Q: H. Banks Company would like to design, produce, and sell

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 br...

Q: Borques Company produces and sells wooden pallets that are used

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 ………………...

Q: At the beginning of the year, Lopez Company had the

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) ………………...

Q: Peanut-Fresh Inc. produces all-natural organic peanut butter. The peanut butter

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 t...

Q: Alard Company produces blenders and coffee makers. During the past

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 $184,0...

Q: The following information was obtained for the grinding department of

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% co...

Q: Smooth Move Company manufactures professional paperweights and has been approached

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 geographic...

Q: Knitpix Products is a division of Parker Textiles Inc. During

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 hav...

Q: In March, Chilton Company purchased materials costing $25,000 and incurred

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:\[/\]/Require...

Q: Juroe Company provided the following income statement for last year:

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

Q: Langer Company produces plastic items, including plastic housings for humidifiers.

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 sh...

Q: Mino Inc. manufactures chocolate syrup in three departments: Cooking, Mixing,

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...

Q: The following financial statements were provided by Roberts Company:

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 dir...

Q: Ondi Airlines is interested in acquiring a new aircraft to

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...

Q: Golding Company, a job-order costing firm, worked on three jobs

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 complete...

Q: Booth Manufacturing has provided the following financial statements.

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

Q: Dr. Whitley Avard, a plastic surgeon, had just returned from

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 pr...

Q: The following information pertains to Chacon Inc. for last year:

The following information pertains to Chacon Inc. for last year:Beginning inventory in units ………………………………………. 5,000Units produced ………………………………………………………… 20,000Units sold …………………………………………………………………. 23,...

Q: Suppose that a surgical ward has gathered the following information

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 categor...

Q: Booth Manufacturing has provided the following financial statements.

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

Q: Zanda Drug Corporation buys three chemicals that are processed to

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...

Q: Jasper Company provided the following information for last year:

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

Q: Suppose that Stillwater Designs has two classes of distributors: JIT

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 plac...

Q: Basu Company produces two types of sleds for playing in

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 t...

Q: The maternity wing of the city hospital has two types

The maternity wing of the city hospital has two types of patients: normal and cesarean. The standard quantities of labor and materials per delivery for 2013 are:\[/\]/The standard price paid per pound...

Q: Ladan Suriman, controller for Healthy Pet Company, has been instructed

Ladan Suriman, controller for Healthy Pet Company, has been instructed to develop a flexible budget for overhead costs. The company produces two types of dog food. Basic Diet is a standard mixture for...

Q: Bowman Company manufactures cooling systems. Bowman produces all the parts

Bowman Company manufactures cooling systems. Bowman produces all the parts necessary for its product except for one electronic component, which is purchased from two local suppliers: Manzer Inc. and B...

Q: The following selected information is taken from the financial statements

The following selected information is taken from the financial statements of Arnn Company for its most recent year of operations:Beginning balances:Inventory ……………………………………………… $200,000Accounts receiv...

Q: Each of the following scenarios is independent. Assume that all

Each of the following scenarios is independent. Assume that all cash flows are after-tax cash flows.a. Cobre Company is considering the purchase of new equipment that will speed up the process for ext...

Q: Foster Company wants to buy a numerically controlled (NC) machine

Foster Company wants to buy a numerically controlled (NC) machine to be used in producing specially machined parts for manufacturers of trenching machines (to replace an existing manual system). The o...

Q: Farnsworth Company has gathered data on its overhead activities and

Farnsworth Company has gathered data on its overhead activities and associated costs for the past 10 months. Tracy Heppler, a member of the controller’s department, has convinced man...

Q: Grammatico Company has just completed its third year of operations.

Grammatico Company has just completed its third year of operations. The income statement is as follows:Sales …………………………………………………………………………… $ 2,460,000Less: Cost of goods sold ………………………………………………… (1,41...

Q: Mike Sanders is considering the purchase of Kepler Company, a

Mike Sanders is considering the purchase of Kepler Company, a firm specializing in the manufacture of office supplies. To be able to assess the financial capabilities of the company, Mike has been giv...

Q: Phono Company manufactures a plastic toy cell phone. The following

Phono Company manufactures a plastic toy cell phone. The following standards have been established for the toy’s materials and labor inputs:During the first week of July, the company...

Q: Botella Company produces plastic bottles. The unit for costing purposes

Botella Company produces plastic bottles. The unit for costing purposes is a case of 18 bottles. The following standards for producing one case of bottles have been established:Direct materials (4 lbs...

Q: Allison Manufacturing produces a subassembly used in the production of

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...

Q: Hayward Company, a manufacturing firm, has supplied the following information

Hayward Company, a manufacturing firm, has supplied the following information from its accounting records for the month of May:Direct labor cost ……………………………………………………………………………..…… $10,500Purchases of r...

Q: Orchard Fresh Inc. purchases fruit from numerous growers and packs

Orchard Fresh Inc. purchases fruit from numerous growers and packs fruit boxes and fruit baskets for sale. Orchard Fresh has developed the following flexible budget for overhead for the coming year. A...

Q: Tristar Manufacturing produces two types of battery-operated toy soldiers: infantry

Tristar Manufacturing produces two types of battery-operated toy soldiers: infantry and special forces. The soldiers are produced by using one continuous process. Four activities have been identified:...

Q: Cuneo Company’s income statements for the last 3 years are

Cuneo Company’s income statements for the last 3 years are as follows:Required:1. Prepare a common-size income statement for Year 1 by expressing each line item as a percentage of sa...

Q: Farnsworth Company has gathered data on its overhead activities and

Farnsworth Company has gathered data on its overhead activities and associated costs for the past 10 months. Tracy Heppler, a member of the controller’s department, has convinced man...

Q: Alfombra Inc. manufactures throw rugs. The throw-rug department weaves cloth

Alfombra Inc. manufactures throw rugs. The throw-rug department weaves cloth and yarn into throw rugs of various sizes. Alfombra uses the weighted average method. Materials are added uniformly through...

Q: The controller of Feinberg Company is gathering data to prepare

The controller of Feinberg Company is gathering data to prepare the cash budget for July. He plans to develop the budget from the following information:a. Of all sales, 40% are cash sales.b. Of credit...

Q: Folsom Company manufactures specialty tools to customer order. There are

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...

Q: Willison Company produces stuffed toy animals; one of these is

Willison Company produces stuffed toy animals; one of these is Betty Rabbit. Each rabbit takes 0.2 yards of fabric and six ounces of poly fiberfill. Fabric costs $3.50 per yard, and poly fiberfill is...

Q: Millie Company produces a product that passes through an assembly

Millie Company produces a product that passes through an assembly process and a finishing process. All manufacturing costs are added uniformly for both processes. The following information was obtaine...

Q: Suppose that Kicker had the following sales and cost experience

Suppose that Kicker had the following sales and cost experience (in thousands of dollars) for May of the current year and for May of the prior year:In May of the prior year, Kicker started an intensiv...

Q: Ramsey Company produces speakers (Model A and Model B). Both

Ramsey Company produces speakers (Model A and Model B). Both products pass through two producing departments. Model A’s production is much more labor-intensive than that of Model B....

Q: Willow Company produces lawn mowers. One of its plants produces

Willow Company produces lawn mowers. One of its plants produces two versions of mowers: a basic model and a deluxe model. The deluxe model has a sturdier frame, a higher horsepower engine, a wider bla...

Q: The Lubbock plant of Morril’s Small Motor Division produces a

The Lubbock plant of Morril’s Small Motor Division produces a major subassembly for a 6.0 horsepower motor for lawn mowers. The plant uses a standard costing system for production costing and control....

Q: Smooth Move Company manufactures professional paperweights and has been approached

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 geographic...

Q: At the beginning of the year, Smith Company budgeted overhead

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...

Q: Bender Automotive Works Inc. manufactures a variety of front-end assemblies

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 surroun...

Q: Luisa Crimini has been operating a beauty shop in a

Luisa Crimini has been operating a beauty shop in a college town for the past 10 years. Recently, Luisa rented space next to her shop and opened a tanning salon. She anticipated that the costs for the...

Q: The controller for Beckham Company believes that the number of

The controller for Beckham Company believes that the number of direct labor hours is associated with overhead cost. He collected the following data on the number of direct labor hours and associated f...

Q: Susan Lewis, owner of a florist shop, is interested in

Susan Lewis, owner of a florist shop, is interested in predicting the cost of delivering floral arrangements. She collected monthly data on the number of deliveries and the total monthly delivery cost...

Q: The following information pertains to Chacon Inc. for last year:

The following information pertains to Chacon Inc. for last year:Beginning inventory in units ……………………………………………. 5,000Units produced ……………………………………………………………… 20,000Units sold ……………………………………………………………………...

Q: Jordan Company provided the following information:

Jordan Company provided the following information:Current assets:Cash ………………………………………………………………….. $12,450,000Accounts receivable ………………………………………………. 8,740,000Inventories ……………………………………………………………. 8,150...

Q: Larry and Mary are two hotel managers who operate franchised select‐

Larry and Mary are two hotel managers who operate franchised select‐service hotels in neighboring cities. While attending their franchisor’s annual general managers’ meeting, they struck up a conversa...

Q: It had been an exhausting two weeks, but JoAnna Taubman was

It had been an exhausting two weeks, but JoAnna Taubman was very pleased with the way her hotel staff had performed. From tornado watch, to warning, to the too close for comfort sighting of a tornado...

Q: “We just don’t have the money,” said Bill, the

“We just don’t have the money,” said Bill, the controller for the 400‐room Lafayette Square hotel. Bill was attending the meeting of the hotel’s Executive Operating Committee and he was informing Wend...

Q: Jennifer Norton is the Registered Dietitian (R.D.) responsible

Jennifer Norton is the Registered Dietitian (R.D.) responsible for all dietary services at City Memorial Hospital. Her operation consists of two departments. The first, and largest, is patient feeding...

Q: 1. In the short run, when room supply is held

1. In the short run, when room supply is held constant A. a decrease in demand for rooms typically leads to a decreased selling price. B. a decrease in demand for rooms typically leads to an increase...

Q: 1. In which industry did the yield management concept originate?

1. In which industry did the yield management concept originate? A. Airline B. Car rental C. Hotel D. Restaurant   2. A hotel has 200 rooms available for sale. The hotel’s rack rate is $175 per room....

Q: 1. A hotel had a GOP of $125,000

1. A hotel had a GOP of $125,000 this accounting period and a GOP of $100,000 the previous accounting period. Total revenue was $300,000 the previous period and $350,000 this period. What was this hot...

Q: 1. At any specified level of revenue, A.

1. At any specified level of revenue, A. the lower a business’s costs, the greater are its profits. B. the lower a business’s costs, the lower are its profits. C. the greater a business’s costs, the...

Q: 1. A restaurant pays its website developer a monthly fee for

1. A restaurant pays its website developer a monthly fee for hosting and maintaining its web presence. The monthly fee charged by the developer is $400, plus $0.003 per site click. What would be the r...

Q: 1. Which is the opposite of incurring an expense?

1. Which is the opposite of incurring an expense? A. Incurring an opportunity cost B. Incurring a fixed cost C. Incurring a mixed cost D. Incurring a step cost 2. When they are calculated as a perce...

Q: 1. If a hospitality operation’s sales are too low, total

1. If a hospitality operation’s sales are too low, total revenue A. may be insufficient to cover fixed and variable costs. B. will cover fixed, but not variable costs. C. will cover variable, but not...

Q: Andrea Wasserman knows her business, but she often wonders if anyone

Andrea Wasserman knows her business, but she often wonders if anyone else really does. Andrea owns and operates a successful catering company. Each catered event she manages is unique. Her company enj...

Q: 1. Which operation would be most likely to experience a seasonal

1. Which operation would be most likely to experience a seasonal sales trend? A. Ski resort B. Downtown business hotel C. Suburban business hotel D. Select-service highway hotel 2. Which is the found...

Q: 1. When a hotel’s room revenue forecasts are consistently and unrealistically

1. When a hotel’s room revenue forecasts are consistently and unrealistically too low they A. result in under-aggressive room rate determinations and rates that are set too low. B. cause unrealistic h...

Q: 1. The two most common methods of classifying different types of

1. The two most common methods of classifying different types of budgets are by their length and A. purpose. B. amount. C. horizon. D. complexity. 2. Which type of budget would provide management wi...

Q: 1. A bar manager estimates her next month’s beverage revenue will

1. A bar manager estimates her next month’s beverage revenue will be $85,200. The bar manager forecasts her Cost of Sales: Beverages for next month to be 22%. What would be amount of this manager’s fo...

Q: 1. An operation’s aging report is used monitor its A

1. An operation’s aging report is used monitor its A. accounts receivable (AR). B. accounts payable (AP). C. credit applications (CA). D. statement of cash flows (SCF).   2. What is the most commonly...

Q: 1. A capital budget is the tool hospitality managers use to

1. A capital budget is the tool hospitality managers use to plan and evaluate A. the purchase of fixed assets. B. the amount of cash to keep on hand. C. their selling prices. D. their operating expens...

Q: 1. The two factors that most affect the returns achieved on

1. The two factors that most affect the returns achieved on an investment are A. rate of investment return and length of investment. B. rate of investment return and amount of investment. C. amount of...

Q: 1. A hospitality business owner pays $50,000 per

1. A hospitality business owner pays $50,000 per year in interest on loans to her business. The annual net operating income from her business is $220,000. What is this owner’s debt coverage ratio? A....

Q: 1. Which is the accounting summary that presents the financial condition

1. Which is the accounting summary that presents the financial condition, or financial health, of a business? A. Balance Sheet B. Income Statement C. Profit and Loss Statement D. Statement of Cash Flo...

Q: 1. Which GAAP prevents a business from switching back and forth

1. Which GAAP prevents a business from switching back and forth between an accrual and a cash accounting system in the same accounting period? A. Consistency Principle B. Conservatism Principle C. Mat...

Q: “We have to lower our prices or we’ll just get killed

“We have to lower our prices or we’ll just get killed,” said Hoyt Lamont, director of operations for the 10‐unit Blinky’s sub shops. Blinky’s was known for its modestly priced, but very high‐ quality,...

Q: 1. The USALI is a series of standardized accounting procedures used

1. The USALI is a series of standardized accounting procedures used by A. hotel managers B. club managers C. bar managers D. restaurant managers 2. The USAR is a series of standardized accounting pr...

Q: 1. The primary purpose of accounting is to report on an

1. The primary purpose of accounting is to report on an organization’s A. money and valuable property. B. revenue potential. C. proper staffing levels. D. estimated market value. 2. The best definiti...

Q: 1. Which is the primary concern of financial accounting?

1. Which is the primary concern of financial accounting? A. Recording financial transactions B. Identification of tax payments C. Control of costs D. Financial management decision making  2. Which go...

Q: 1. Which is the foundation of accurate financial reporting and analysis

1. Which is the foundation of accurate financial reporting and analysis? A. Bookkeeping B. Managerial accounting C. Summary accounting D. Cost analysis 2. In the hospitality industry, a property man...

Q: 1. In a hospitality business, a cost center is best

1. In a hospitality business, a cost center is best defined as a A. unit or department that generates costs, but no revenues or profits B. department in charge of product purchases C. unit responsibl...

Q: 1. What are the two expenses, listed on the income

1. What are the two expenses, listed on the income statement, that make up a restaurant’s prime costs? A. Cost of sales and cost of labor B. Cost of sales and occupancy costs C. Occupancy costs and co...

Q: 1. To increase a restaurant’s revenue, its managers must increase

1. To increase a restaurant’s revenue, its managers must increase the number of guests served or A. increase the amount spent by each guests B. increase the prices charged to guests C. reduce the ope...

Q: 1. Business owners prepare balance sheets to better understand the value

1. Business owners prepare balance sheets to better understand the value of a business and A. how well its assets have been utilized to produce wealth B. the revenue producing ability of the business...

Q: 1. Which balance sheet format are managers using when they list

1. Which balance sheet format are managers using when they list a business’s assets on the left side of the balance sheet report, with liabilities and owners’ equity listed on the right side of the re...

Q: 1. Which of the following current assets is the LEAST liquid

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Q: Jessica Castillo had always been interested in food and cooking. After

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Q: 1. The Statement of Cash Flows (SCF) shows all

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Q: 1. Which change recorded in the liabilities and owners’ equity portion

1. Which change recorded in the liabilities and owners’ equity portion of a balance sheet represents a source of funds? A. Increase in accounts payable B. Decrease in long-term debt C. Decrease in pa...

Q: 1. Which action on the part of a manager would affect

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Q: 1. Which is NOT a proper way to express the ratio

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Q: 1. Which of the following is calculated as: Current Assets

1. Which of the following is calculated as: Current Assets – Current Liabilities? A. Working capital B. Cash flow C. Fresh cash flow D. Liquidity 2. Which is NOT a solvency-related ratio? A. Operati...

Q: 1. Last year a 500-room hotel was open for

1. Last year a 500-room hotel was open for 365 days, had rooms department costs of $2,409,000, and achieved a 75% occupancy. What was the hotel’s CPOR for rooms department costs? A. $17.60 B. $176 C....

Q: 1. As the level of personal service in a hospitality business

1. As the level of personal service in a hospitality business increases, operating costs A. increase and selling prices must also be increased. B. increase and selling prices must be decreased. C. de...

Q: 1. Which is the formula that food service managers use to

1. Which is the formula that food service managers use to calculate their total revenue? A. Price x Number Sold = Total Revenue B. Price / Number Sold = Total Revenue C. Number of customers x Price...

Q: 1. Which is a factor used in the food cost %,

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Q: “I think it’s a great idea,” said Natalie Duke

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Q: “Let me make sure I understand this. You want to

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Q: “I don’t know, Bharath,” said Arun Poddar, Bharath’s

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Q: “This is a bit new for me,” said Maddie,

“This is a bit new for me,” said Maddie, the new controller at the 600‐room Fairmont Hotel. “I know,” said Marcus, the hotel’s general manager, “but you will catch on pretty quick I’m sure. And I am c...

Q: Samara Tate couldn’t have been happier. As she looked back on

Samara Tate couldn’t have been happier. As she looked back on the past two years, she realized just how much how her hard work had paid off. First, she had been hired as a waitress at the exclusive Sy...

Q: Rodney Nicole was excited as he talked to his friend Ali Pennycuff

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Q: David Berger was about to achieve his dream. Having finished culinary

David Berger was about to achieve his dream. Having finished culinary school and then completed his hospitality management degree, David was ready to seek the financial backing he needed to open what...

Q: “Are you sure you read it right?” asked Ahmed,

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Q: Lezinah Ncube has just taken a new job as regional manager of

Lezinah Ncube has just taken a new job as regional manager of a limited service hotel chain. Her region includes six hotels, with each hotel consisting of approximately 150 rooms each. Each hotel also...

Q: “I don’t get it,” said Tasha “are you telling

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Q: Charlotte Lebioda grew up in the hotel business. Her parents owned

Charlotte Lebioda grew up in the hotel business. Her parents owned and operated a 100‐ room limited service hotel for 20 years. When Charlotte graduated from hospitality school, her parents retired, t...

Q: “I still don’t get it,” said Ahmir, “how

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Q: Bill O’Leary could see both sides of the issue. As the

Bill O’Leary could see both sides of the issue. As the general manager of the 500‐unit Plazamar Hotel, he knew how important it was to remember that both members of his room revenue management team no...

Q: Mary Margaret Glenn knew the going would be tough for the first

Mary Margaret Glenn knew the going would be tough for the first couple of years. She was now finding out exactly how tough. After five years of working for others, Mary and her former college roommate...

Q: “I think we have to do it,” said Paula,

“I think we have to do it,” said Paula, the director of operations for the five‐unit Hungry Henry’s pizza chain. Paul was talking to Henry Acosta, the chain’s founder. Paula and Henry were discussing...

Q: “I think I can buy it at a great price,”

“I think I can buy it at a great price,” said Dan Flood. He was talking about the Watershed Restaurant. The property was for sale and Dan was meeting with Loralei Glenn, his friend and an experienced...

Q: “You’ve got to be kidding me!” said Amit Chopra,

“You’ve got to be kidding me!” said Amit Chopra, owner of the 215‐room Comfort Express in Jamestown. “No, I’m not kidding. He sold them all,” replied Sylvia Zepeda, the hotel’s director of sales and m...

Q: Determine whether each of the following costs would be classified as product

Determine whether each of the following costs would be classified as product costs or period costs under a variable-costing system: Identify costs as product costs or period costs under variable costi...

Q: Information for Rafael Corp. is given in BE8.8.

Information for Rafael Corp. is given in BE8.8. Prepare absorption-costing income statement and reconcile the difference in net income under the two approaches. a. Prepare an absorption-costing income...

Q: Caspian Company produced 20,000 units and sold 18,000

Caspian Company produced 20,000 units and sold 18,000 during the current year. Under absorption costing, net income was $25,000. Fixed overhead was $190,000. Determine the net income under variable co...

Q: Fresh Air Products manufactures and sells a variety of camping products.

Fresh Air Products manufactures and sells a variety of camping products. Recently the company opened a new plant to manufacture a deluxe portable cooking unit. Cost and sales data for the first month...

Q: Information for Fresh Air Products is given in D8.12.

Information for Fresh Air Products is given in D8.12. Calculate total product cost and prepare an income statement using variable costing. Instructions a. Assuming the company uses variable costing:...

Q: Information for Fresh Air Products is given in D8.12.

Information for Fresh Air Products is given in D8.12. Calculate total product cost and prepare an income statement using normal costing. Instructions a. Assume the company uses normal costing and use...

Q: Information for Fresh Air Products is given in D8.12.

Information for Fresh Air Products is given in D8.12. Calculate total product cost and prepare an income statement using throughput costing. Instructions a. Assuming the company uses throughput costi...

Q: Wu Equipment Company manufactures and distributes industrial air compressors. The following

Wu Equipment Company manufactures and distributes industrial air compressors. The following data are available for the year ended December 31, 2020. The company had no beginning inventory. In 2020, it...

Q: Asian Windows manufactures a hand-painted bamboo window shade for standard

Asian Windows manufactures a hand-painted bamboo window shade for standard-size windows. Production and sales data for 2020 are as follows: Prepare income statements under absorption costing and varia...

Q: Information for Asian Windows is given in E8.17.

Information for Asian Windows is given in E8.17. Calculate total product cost and prepare an income statement using normal costing. Instructions a. Assume the company uses normal costing and uses the...

Q: Bob's Company builds custom fishing lures for sporting goods stores. In

Bob's Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2020, the company incurred the following costs: Calculate the product cost and prepare an income s...

Q: Determine whether each of the following costs would be classified as product

Determine whether each of the following costs would be classified as product costs or period costs under an absorption-costing system. Identify costs as product costs or period costs under absorption...

Q: Information for Bob's Company is provided in E8.19.

Information for Bob's Company is provided in E8.19. Calculate the product cost and prepare an income statement under absorption costing. Instructions a. Assuming the company uses absorption costing,...

Q: Information for Bob's Company is provided in E8.19.

Information for Bob's Company is provided in E8.19. Calculate the product cost and prepare an income statement under normal costing. Instructions a. Assume the company uses normal costing and uses th...

Q: Empey Manufacturing produces towels to be sold as souvenirs at sporting events

Empey Manufacturing produces towels to be sold as souvenirs at sporting events throughout the world. Assume that units produced equalled units sold in 2020. The company's variable-costing income state...

Q: Ortiz Company produced 9,000 units during the past year but

Ortiz Company produced 9,000 units during the past year but sold only 8,200 of the units. The following additional information is also available: Determine the ending inventory under variable costing;...

Q: Hardwood Inc. produces mostly wooden crates used for shipping products by

Hardwood Inc. produces mostly wooden crates used for shipping products by ocean freighter. In 2020, Hardwood incurred the following costs: Calculate the manufacturing cost under absorption and variabl...

Q: During its second year of operations, TGS Corporation produced 3,

During its second year of operations, TGS Corporation produced 3,000 units and sold 2,800 units at $60 each. The beginning inventory comprised 100 units, and costs were unchanged from the previous yea...

Q: Blue Mountain Products manufactures and sells a variety of camping goods.

Blue Mountain Products manufactures and sells a variety of camping goods. Recently, the company opened a new plant to manufacture a lightweight, self-standing tent. Cost and sales data for the first m...

Q: AFN Company produces plastic that is used for injectionmoulding applications such as

AFN Company produces plastic that is used for injectionmoulding applications such as gears for small motors. In 2020, the first year of operations, AFN Company produced 4,000 tonnes of plastic and sol...

Q: Basic Electric Motors is a division of Basic Electric Products Corporation.

Basic Electric Motors is a division of Basic Electric Products Corporation. The division manufactures and sells an electric switch used in a wide variety of applications. During the coming year, it ex...

Q: Alta Products Ltd. has just created a new division to manufacture

Alta Products Ltd. has just created a new division to manufacture and sell DVD players. The facility is highly automated and thus has high monthly fixed costs, as shown in the following schedule of bu...

Q: Determine whether each of the following costs would be classified as product

Determine whether each of the following costs would be classified as product costs or period costs under a throughput-costing system. Identify costs as product costs or period costs under throughput c...

Q: Information for Alta Products Ltd. is provided in P8.29A

Information for Alta Products Ltd. is provided in P8.29A. Calculate the product cost and prepare an income statement under normal costing. Instructions a. Assume the company uses normal costing and u...

Q: Amanjeet Chinmayi left her job as the production manager of a medium

Amanjeet Chinmayi left her job as the production manager of a medium-sized firm two years ago to join a new firm that was manufacturing a revolutionary type of fitness equipment. Amanjeet was made the...

Q: Xantra Corp. is a manufacturer of specialty in-line skates

Xantra Corp. is a manufacturer of specialty in-line skates. The operating results for 2020 are as follows: Calculate the product cost; prepare income statements under variable costing, absorption cost...

Q: Information for Xantra Corp. is provided in P8.32A.

Information for Xantra Corp. is provided in P8.32A. Calculate the product cost and prepare an income statement under normal costing. Instructions a. Assume the company uses normal costing and uses th...

Q: Sun Company, a wholly owned subsidiary of Guardian Inc., produces

Sun Company, a wholly owned subsidiary of Guardian Inc., produces and sells three main product lines. At the beginning of 2020, the president of Sun Company presented the budget to the parent company...

Q: The Daniels Tool & Die Corporation has been in existence for a

The Daniels Tool & Die Corporation has been in existence for a little over three years. The company's sales have been increasing each year as it builds a reputation. The company manufactures dies...

Q: SpongeFun Products manufactures and sells a variety of swimming products. Recently

SpongeFun Products manufactures and sells a variety of swimming products. Recently, the company opened a new plant to manufacture a lightweight, inflatable boat. Cost and sales data for 2020 are shown...

Q: Information for SpongeFun Products is provided in P8.36B.

Information for SpongeFun Products is provided in P8.36B. Calculate the product cost and prepare an income statement under normal costing. Instructions a. Assume the company uses normal costing and u...

Q: Zaki Metal Company produces the steel wire that is used for the

Zaki Metal Company produces the steel wire that is used for the production of paper clips. In 2020, the first year of operations, Zaki produced 60,000 km of wire and sold 50,000 km. In 2021, the produ...

Q: Harrison Pumps is a division of Liverpool Controls Corporation. The division

Harrison Pumps is a division of Liverpool Controls Corporation. The division manufactures and sells a pump that is used in a wide variety of applications. During the coming year, it expects to sell 60...

Q: Large Orange Company produces basketballs. It incurred the following costs during

Large Orange Company produces basketballs. It incurred the following costs during the year: Calculate product costs under variable costing. Direct materials ……………………………. $14,400 Direct labour …………………...

Q: Allerdyce Corporation Ltd. (ACL) prepares external financial statements using

Allerdyce Corporation Ltd. (ACL) prepares external financial statements using absorption costing and internal financial statements using variable costing. You have the following information for the op...

Q: The vice-president of Abscorp Ltd. is not happy.

The vice-president of Abscorp Ltd. is not happy. Sales have been rising steadily, but profits have been falling. In September 2020, Abscorp had record sales, but the lowest profits ever. The results f...

Q: Boat Refit Inc. produces and sells custom parts for powerboats.

Boat Refit Inc. produces and sells custom parts for powerboats. The company uses a costing system based on actual costs. Selected accounting and production information for fiscal 2020 is as follows: C...

Q: Wingfoot Co. began operations on July 1, 2019. By

Wingfoot Co. began operations on July 1, 2019. By the end of its first fiscal year, ended June 30, 2020, Wingfoot had sold 10,000 wingers. Selected data on operations for the year ended June 30, 2020,...

Q: Portland Optics, Inc., specializes in manufacturing lenses for large telescope

Portland Optics, Inc., specializes in manufacturing lenses for large telescope cameras used in space exploration. Since the specifications for the lenses are determined by the customer and vary consid...

Q: ComfortCraft manufactures swivel seats for customized vans. It currently manufactures 20

ComfortCraft manufactures swivel seats for customized vans. It currently manufactures 20,000 seats per year, which it sells for $680 per seat. It incurs variable costs of $340 per seat and fixed costs...

Q: : Big Sports Manufacturing produces basketballs used for indoor and outdoor games

Big Sports Manufacturing produces basketballs used for indoor and outdoor games. The company has had significant troubles over the past few years, as the number of competitors in the basketball marke...

Q: The Wei Nan Company manufactures and sells personal organizers. The following

The Wei Nan Company manufactures and sells personal organizers. The following are the operating data for the company for 2019 and 2020: There was no beginning inventory on January 1, 2019. The compa...

Q: DDD Golf Ltd. produces and sells special golf balls for $

DDD Golf Ltd. produces and sells special golf balls for $20 for a pack of three. In May 2020, the company manufactured 30,000 packs (its normal volume) and sold 28,000 packs. The beginning inventory o...

Q: The vice-president for sales of Huber Corporation has received the

The vice-president for sales of Huber Corporation has received the following income statement for November, which was prepared on a variable costing system. The firm has just adopted variable costing...

Q: Information for Large Orange Company is given in BE8.4.

Information for Large Orange Company is given in BE8.4. What is the total product cost for the company under absorption costing? Calculate product costs under absorption costing. Data from BE8.4: Lar...

Q: The following data relate to a year's budgeted activity for Rickuse Limited

The following data relate to a year's budgeted activity for Rickuse Limited, a company that manufactures one product: ……………………………………………………………………………………………………………………… Units Beginning inventory ………………………...

Q: BBG Corporation manufactures a synthetic element, pixie dust. Management

BBG Corporation manufactures a synthetic element, pixie dust. Management was surprised to learn that income before taxes had dropped even though the sales volume had increased. Steps had been taken du...

Q: Scott Wadzicki was hired in January 2020 to manage the home products

Scott Wadzicki was hired in January 2020 to manage the home products division of Advanced Techno. As part of his employment contract, he was told that he would get an extra $5,000 bonus for every 1% i...

Q: You work for a firm of management consultants that offers assistance to

You work for a firm of management consultants that offers assistance to new businesses. One of your clients is Shorttress Manufacturing, a company that manufactures a small, but vital, component for t...

Q: When Waterways' management met to review the year-end financial statements

When Waterways' management met to review the year-end financial statements, the room was filled with excitement. Sales had been exceptional during the year and every department had exceeded the budget...

Q: Information for Large Orange Company is given in BE8.4.

Information for Large Orange Company is given in BE8.4. What is the total product cost for the company under throughput costing? Calculate product costs under throughput costing. Data from BE8.4: Lar...

Q: Burns Manufacturing incurred the following costs during the year: direct materials

Burns Manufacturing incurred the following costs during the year: direct materials, $20 per unit; direct labour, $14 per unit; variable manufacturing overhead, $15 per unit; variable selling and admin...

Q: During 2020, Rafael Corp. produced 40,000 units and

During 2020, Rafael Corp. produced 40,000 units and sold 40,000 for $15 per unit. Variable manufacturing costs were $6 per unit. Annual fixed manufacturing overhead was $80,000 ($2 per unit). Variable...

Q: Information for Rafael Corp. is given in BE8.8.

Information for Rafael Corp. is given in BE8.8. Suppose the accountant for Rafael Corp. uses normal costing and uses the budgeted volume of 50,000 units to allocate the fixed overhead rate rather than...

Q: Diane Buswell, controller for Current Designs, reviewed the accounting records

Diane Buswell, controller for Current Designs, reviewed the accounting records for a recent period and noted the following items. Instructions Classify each item as a product cost or a period cost. I...

Q: Montana Company reports the following total costs at two levels of production

Montana Company reports the following total costs at two levels of production. Classify types of costs. Classify each cost as variable, fixed, or mixed.

Q: Amanda Company accumulates the following data concerning a mixed cost, using

Amanda Company accumulates the following data concerning a mixed cost, using units produced as the activity level. Calculate costs using high-low method and estimate total cost. a. Calculate the var...

Q: The following information is available for Rolen Manufacturing Company. Prepare

The following information is available for Rolen Manufacturing Company. Prepare a cost of goods manufactured schedule. / / Prepare the cost of goods manufactured schedule for the month of April.

Q: Presented below is a list of costs and expenses usually incurred by

Presented below is a list of costs and expenses usually incurred by Burrand Corporation, a manufacturer of furniture, in its factory: Classify costs into three classes of manufacturing costs. 1. _____...

Q: Wu-Li Corporation incurred the following costs while manufacturing its product

Wu-Li Corporation incurred the following costs while manufacturing its product: Identify types of costs and explain their accounting. Materials used in product ………………………………… $100,000 Depreciation on...

Q: Caroline Company reported the following costs and expenses in May:

Caroline Company reported the following costs and expenses in May: Determine the total amount of various types of costs. Factory utilities ……………………………………………….. $ 15,500 Depreciation on factory equipm...

Q: Sota Company is a manufacturer of personal computers. Various costs

Sota Company is a manufacturer of personal computers. Various costs and expenses associated with its operations are as follows: Classify various costs into different cost categories. 1. _____ Property...

Q: The administrators of the local hospital are interested in identifying the various

The administrators of the local hospital are interested in identifying the various costs and expenses that are incurred in producing a patient’s X-ray. A list of such costs and expenses is presented b...

Q: Dye Company manufactures a single product. Annual production costs incurred in

Dye Company manufactures a single product. Annual production costs incurred in the manufacturing process are shown below for two levels of production: Determine fixed, variable, and mixed costs. //...

Q: Kozy Enterprises is considering manufacturing a new product. It projects the

Kozy Enterprises is considering manufacturing a new product. It projects the cost of direct materials and rent for a range of output quantities as shown below: Diagram cost behaviour to determine the...

Q: Recently Ryan Smith, the plant manager of the manufacturing division of

Recently Ryan Smith, the plant manager of the manufacturing division of Waterways Corporation, has been focusing on changes to overhead costs. He realizes that Ben Clark’s new design...

Q: Black Brothers Furniture Corporation incurred the following costs: Classify variable

Black Brothers Furniture Corporation incurred the following costs: Classify variable, fixed, and mixed costs. 1. Wood used in the production of furniture 2. Fuel used in delivery trucks 3. Straight-li...

Q: The controller of Gutierrez Industries has collected the following monthly expense data

The controller of Gutierrez Industries has collected the following monthly expense data for use in analyzing the cost behaviour of maintenance costs: Determine fixed and variable costs and calculate o...

Q: Mozena Corporation manufactures a single product. Monthly production costs incurred in

Mozena Corporation manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of 3,000 units. The utilities and maintenance costs...

Q: Rapid Delivery Service reports the following costs and expenses in June 2020

Rapid Delivery Service reports the following costs and expenses in June 2020: Classify various costs into different cost categories. Indirect materials ……………………………………. $ 8,400 Depreciation on deliver...

Q: Sinjay Corporation incurred the following costs while manufacturing its product:

Sinjay Corporation incurred the following costs while manufacturing its product: Calculate the cost of goods manufactured and sold. Materials used in product …………………………... $120,000 Depreciation on pl...

Q: An incomplete cost of goods manufactured schedule is presented below for Cepeda

An incomplete cost of goods manufactured schedule is presented below for Cepeda Manufacturing Company for the year ended December 2020: Determine missing amounts in cost of goods manufactured schedule...

Q: Manufacturing cost data for Criqui Company are presented below: Determine

Manufacturing cost data for Criqui Company are presented below: Determine the missing amounts of different cost items. // Instructions Provide the missing amount for each letter.

Q: Incomplete manufacturing cost data for Ikerd Company for 2020 are presented as

Incomplete manufacturing cost data for Ikerd Company for 2020 are presented as follows for four different situations: Determine the missing amounts of different cost items, and prepare a condensed cos...

Q: Aikman Corporation has the following cost records for June 2020:

Aikman Corporation has the following cost records for June 2020: Prepare a cost of goods manufactured schedule and a partial income statement. Indirect factory labour ……………………………….. $ 4,500 Direct ma...

Q: Suraya Collier, the bookkeeper for Danner, Letourneau, and Majewski

Suraya Collier, the bookkeeper for Danner, Letourneau, and Majewski, a political consulting firm, has recently completed a managerial accounting course at her local community college. One of the topic...

Q: Deines Company accumulates the following data concerning a mixed cost, using

Deines Company accumulates the following data concerning a mixed cost, using kilometres as the activity level: Determine variable and fixed cost elements using the high-low method. Calculate the var...

Q: The following information is available for Sassafras Company: Prepare a

The following information is available for Sassafras Company: Prepare a cost of goods manufactured schedule and a partial income statement. Instructions a. Calculate the cost of goods manufactured....

Q: Corbin Manufacturing Company produces blankets. From its accounting records it prepares

Corbin Manufacturing Company produces blankets. From its accounting records it prepares the following schedule and financial statements on a yearly basis: Indicate in which schedule or financial state...

Q: An analysis of the accounts of Kananaskis Manufacturing reveals the following manufacturing

An analysis of the accounts of Kananaskis Manufacturing reveals the following manufacturing cost data for the month ended June 30, 2020: Prepare a cost of goods manufactured schedule, and present the...

Q: Todd Motor Company manufactures automobiles. During September 2020, the company

Todd Motor Company manufactures automobiles. During September 2020, the company purchased 5,000 headlights at a cost of $8 per lights. There was no beginning inventory of lights. Todd withdrew 4,650 l...

Q: Mina Company specializes in manufacturing motorcycle helmets. The company has enough

Mina Company specializes in manufacturing motorcycle helmets. The company has enough orders to keep the factory production at 1,000 motorcycle helmets per month. Mina’s monthly manuf...

Q: Par Play Company, a manufacturer of driver golf clubs, started

Par Play Company, a manufacturer of driver golf clubs, started production in November 2020. For the preceding five years, Par Play had been a retailer of sports equipment. After a thorough survey of d...

Q: Incomplete manufacturing costs, expenses, and selling data for two different

Incomplete manufacturing costs, expenses, and selling data for two different cases are as follows: Indicate the missing amounts of different cost items, and prepare a condensed cost of goods manufactu...

Q: The following data were taken from the records of Stellar Manufacturing

The following data were taken from the records of Stellar Manufacturing Company for the fiscal year ended December 31, 2020: Prepare a cost of goods manufactured schedule, a partial income statement,...

Q: Tombert Company is a manufacturer of computers. Its controller resigned in

Tombert Company is a manufacturer of computers. Its controller resigned in October 2020. An inexperienced assistant accountant has prepared the following income statement for the month of October 2020...

Q: Nova Chemicals Corp. incurred the following manufacturing costs for the year

Nova Chemicals Corp. incurred the following manufacturing costs for the year 2020: Calculate raw materials purchased, cost of goods manufactured, and cost of goods sold. Instructions a. For 2020, wh...

Q: Westerville Corp. has collected the following data concerning its maintenance costs

Westerville Corp. has collected the following data concerning its maintenance costs for the past six months: Determine variable and fixed cost elements using the high-low method. Calculate the varia...

Q: The following information is for Montreal Gloves Inc. for the year

The following information is for Montreal Gloves Inc. for the year 2020: Calculate cost of goods manufactured and cost of goods sold. Manufacturing costs ………………………………………….. $3,000,000 Number of glove...

Q: Rexfield Company recorded the following transactions for the month of February:

Rexfield Company recorded the following transactions for the month of February: Determine missing amounts in the cost of goods manufactured and sold schedule and compare fixed and variable costs. //...

Q: Last night, the sprinkler system at Plant A was accidentally set

Last night, the sprinkler system at Plant A was accidentally set off. The ensuing deluge destroyed most of the cost records in Plant A for the month just completed (May). The plant manager has come to...

Q: Hite Company specializes in manufacturing motorcycle helmets. The company has enough

Hite Company specializes in manufacturing motorcycle helmets. The company has enough orders to keep the factory production at 1,000 motorcycle helmets per month. Hite’s monthly manuf...

Q: Ladoca Company, a manufacturer of tennis racquets, started production in

Ladoca Company, a manufacturer of tennis racquets, started production in November 2020. For the preceding five years, Ladoca had been a retailer of sports equipment. After a thorough survey of tennis...

Q: Incomplete manufacturing costs, expenses, and selling data for two different

Incomplete manufacturing costs, expenses, and selling data for two different cases are as follows: Indicate the missing amounts of different cost items, and prepare a condensed cost of goods manufactu...

Q: The following data were taken from the records of Ruiz Manufacturing

The following data were taken from the records of Ruiz Manufacturing Company for the year ended December 31, 2020: Prepare a cost of goods manufactured schedule, a partial income statement, and a part...

Q: The following incomplete data are for Atlantic Pride Manufacturing: Calculate

The following incomplete data are for Atlantic Pride Manufacturing: Calculate prime cost, conversion cost, and cost of goods manufactured. Additional information for 2020: Direct materials â&...

Q: The following incomplete income statement information is available for Sawchule Ltd.

The following incomplete income statement information is available for Sawchule Ltd. for 2020: Prepare income statement schedules for the cost of goods sold and cost of goods manufactured. Sales …………...

Q: Incomplete manufacturing costs for the month of June are as follows:

Incomplete manufacturing costs for the month of June are as follows: Determine missing amounts in the cost of goods manufactured and sold schedule and compare fixed and variable costs. // Sales were...

Q: Presented below are Lang Company’s monthly manufacturing cost data related to its

Presented below are Lang Company’s monthly manufacturing cost data related to its personal computer products. Classify manufacturing costs. a. Utilities for manufacturing equipment,...

Q: Agler Company is a manufacturer of toys. Its controller resigned in

Agler Company is a manufacturer of toys. Its controller resigned in August 2020. An inexperienced assistant accountant has prepared the following income statement for the month of August 2020. Prepare...

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The following data are given for X Firm (in millions of dollars): Calculate selected costs for the income statement and cost of goods manufactured and sold schedules. Beginning and ending inventories...

Q: On January 31, 2020, the manufacturing facility of a mediumsized

On January 31, 2020, the manufacturing facility of a mediumsized company was severely damaged by an accidental fire. As a result, the company’s direct materials, work in process, and finished goods in...

Q: A fire on the premises of Bydo Inc. destroyed most of

A fire on the premises of Bydo Inc. destroyed most of its records. Below is an incomplete set of data for operations in 2020: Sales …………………………………………………………………………..………. ? Raw materials, beginning inven...

Q: On January 31, a snowstorm damaged the office of a small

On January 31, a snowstorm damaged the office of a small business, and some of the accounting information stored in the computer’s memory was lost. The following information pertaining to January acti...

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In January 2020, Sayers Manufacturing incurred the following costs in manufacturing Detecto, its only product: Direct materials purchased ……â€&brvba...

Q: XYZ Company reports the following inventory data for the month of June

XYZ Company reports the following inventory data for the month of June: 1. Direct materials purchases were $140. 2. Direct costs of production were $220. 3. Variable costs of production were $280. 4...

Q: Match Manufacturing Company specializes in producing fashion outfits. On July

Match Manufacturing Company specializes in producing fashion outfits. On July 31, 2020, a tornado touched down at its factory and general office. The inventories in the warehouse and the factory were...

Q: Wayne Terrago, controller for Robbin Industries, was reviewing production cost

Wayne Terrago, controller for Robbin Industries, was reviewing production cost reports for the year. One amount in these reports continued to bother him—advertising. During the year, the company had i...

Q: You work for the controller at Green Partxs Inc., a small

You work for the controller at Green Partxs Inc., a small specialized supplier to the auto parts industry. Currently, it produces 20,000 units per month, using two shifts, with each shift producing 10...

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Presented in alphabetical order below are current asset items for Dieker Company’s balance sheet at December 31, 2020. Prepare the current assets section (including a complete heading). Prepare curren...

Q: Marvel Manufacturing Inc. provides you with the following data for the

Marvel Manufacturing Inc. provides you with the following data for the month of June: Calculate production and period costs, manufacturing overhead, and the cost of materials and labour. Prime costs w...

Q: Presented below are incomplete manufacturing cost data. Determine the missing

Presented below are incomplete manufacturing cost data. Determine the missing amounts for three different situations. Determine missing amounts in calculating total manufacturing costs. //

Q: Use the same data from BE2.12 above and the data

Use the same data from BE2.12 above and the data below to determine the missing amounts. Determine missing amounts in calculating cost of goods manufactured. Data from BE 2.12: //

Q: Waterloo Co. sells product P-14 at a price of

Waterloo Co. sells product P-14 at a price of $48 a unit. The per-unit cost data are direct materials $15, direct labour $10, and overheads $12 (75% variable). Waterloo Co. has sufficient capacity to...

Q: Maplewood Company must decide whether to make or buy some of

Maplewood Company must decide whether to make or buy some of its components. The costs of producing 60,000 switches for its generators are as follows. Evaluate make-or-buy opportunity. Instead of m...

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La Mesa manufactures unpainted furniture for the do-it-yourself market. It currently sells a table for $75. Production costs are $39 variable and $10 fixed. La Mesa is considering staining and sealing...

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The law firm of Matadin and Howe relies heavily on a colour laser printer to process the paperwork. Recently the printer has not functioned well and print jobs were not being processed. Management is...

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Lion Corporation manufactures several types of accessories. For the year, the gloves and mittens line had sales of $500,000, variable expenses of $375,000, and fixed expenses of $150,000. Therefore, t...

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Capital Corporation manufactures and sells three different types of binoculars. They are referred to as Good, Better, and Best binoculars. Grinding and polishing time is limited. More time is required...

Q: Pender has prepared the following list of statements about decision-making

Pender has prepared the following list of statements about decision-making and incremental analysis: Analyze statements about decision-making and incremental analysis. 1. The first step in management’...

Q: Hardy Fibre is the creator of Y-Go, a technology

Hardy Fibre is the creator of Y-Go, a technology that weaves silver into fabrics to kill bacteria and odour on clothing while managing heat. Y-Go has become very popular in undergarments for sports ac...

Q: Young Mi Inc. has been manufacturing its own shades for its

Young Mi Inc. has been manufacturing its own shades for its table lamps. The company is currently operating at 100% of capacity, and variable manufacturing overhead is charged to production at the rat...

Q: SY Telc has recently started to manufacture RecRobo, a three-

SY Telc has recently started to manufacture RecRobo, a three-wheeled robot that can scan a home for fires and gas leaks and then transmit this information to a mobile phone. The cost structure to manu...

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Josée Chabot recently opened her own basket-weaving studio. She sells finished baskets in addition to the raw materials needed by customers to weave baskets of their own. Josée has put together a vari...

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Assume the same information as in BE7.3, except that Waterloo has no excess capacity. Indicate the net income (loss) that Waterloo would realize by accepting the special order. Determine whether to ac...

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Bahrat, Inc. produces three separate products from a common process costing $100,000. Each of the products can be sold at the split-off point or can be processed further and then sold for a higher pri...

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Shynee Minerals processes materials extracted from mines. The most common raw material that it processes results in three joint products: Sarco, Barco, and Larco. Each of these products can be sold as...

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On January 2, 2019, Riverside Hospital purchased a $100,000 special radiology scanner from Faital Inc. The scanner has a useful life of five years and will have no disposal value at the end of its use...

Q: Twyla Enterprises uses a computer to handle its sales invoices. Lately

Twyla Enterprises uses a computer to handle its sales invoices. Lately, business has been so good that it takes an extra three hours per night, plus every third Saturday, to keep up with the volume of...

Q: Nicole Filippas, a recent graduate of Rollings University’s accounting program,

Nicole Filippas, a recent graduate of Rollings University’s accounting program, evaluated the operating performance of Poway Company’s six divisions. Nicole made the following presentation to Poway’s...

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Spencer Company manufactures and sells three products. Relevant per-unit data for each product follow: Calculate the contribution margin and determine the products to be manufactured. Instructions a...

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Dalton Company manufactures and sells two products. Relevant per-unit data concerning each product follow: Calculate the contribution margin and determine the products to be manufactured. Instructio...

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Metropole Inc. can produce three different products interchangeably on two machines. The accounting department provides the following information on these products: Calculate the contribution margin a...

Q: Montel Firm is considering whether to outsource the manufacture of subcomponent JXY

Montel Firm is considering whether to outsource the manufacture of subcomponent JXY. The accounting department provides the following cost information for manufacturing 10,000 units of the subcomponen...

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Clarington Company makes three models of phasers. Information on the three products is given below: Prepare incremental analysis for decision to eliminate a product line. Fixed expenses consist of $...

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Emil Manufacturing incurs unit costs of $7.50 ($4.50 variable and $3.00 fixed) in making a sub-assembly part for its finished product. A supplier offers to make 10,000 of the parts for $5 per unit. If...

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Pro Sports Inc. manufactures basketballs for professional basketball associations. For the first six months of 2020, the company reported the following operating results while operating at 90% of plan...

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The management of Borealis Manufacturing Company is trying to decide whether to continue manufacturing a part or to buy it from an outside supplier. The part, called WISCO, is a component of the compa...

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Jenson College provides its own housekeeping services. The College director would like to outsource this service and has found a company that will provide the service for $48 per hour. The following i...

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Interdesign uses 1,000 units of the component IMC2 every month to manufacture one of its products. The unit costs incurred to manufacture the component are as follows: Calculate contribution margin an...

Q: Miramichi Industrial Products Co. is a diversified industrial cleaner processing company

Miramichi Industrial Products Co. is a diversified industrial cleaner processing company. The company’s main plant produces two products: a table cleaner and a floor cleaner. They ar...

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Last year (2019), Calway Condos installed a mechanized elevator for its tenants. The owner of the company, Cab Calway, recently returned from an industry equipment exhibition where he watched a comput...

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Ribeiro Manufacturing Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from operations of $145,000 and the following divisional results: Ca...

Q: A company manufactures three products using the same production process. The

A company manufactures three products using the same production process. The costs incurred up to the split-off point are $200,000. These costs are allocated to the products on the basis of their sale...

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Straus Company operates a small factory in which it manufactures two products: A and B. Production and sales results for this year were as follows: Calculate the contribution margin and prepare increm...

Q: The Kamloops Outdoors Corporation, which produces a highly successful line of

The Kamloops Outdoors Corporation, which produces a highly successful line of summer lotions and insect repellents and sells them to wholesalers, has decided to diversify in order to stabilize its sal...

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Green Inc. makes unfinished bookcases that it sells for $62. Production costs are $36 variable and $10 fixed. Because it has unused capacity, Green is considering finishing the bookcases and selling t...

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Manning Industries manufactures and sells three different models of wet-dry shop vacuum cleaners. Although the shop vacs vary in terms of quality and features, all are good sellers. Manning is current...

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T&G Co. manufactures three types of computer desks. The income statement for the three products and the whole company is shown below: Calculate contribution margin and prepare incremental analysis...

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Castle Company is considering the purchase of a new machine. The invoice price of the machine is $150,000, freight charges are estimated to be $6,000, and installation costs are expected to be $4,000....

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Axia Inc. manufactures two electronic products, widgets and gadgets, and has a capacity of 1,000 machine hours. Prices and costs for each product are as follows: * Variable manufacturing overhead co...

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In Lebeau Company, data for the contribution margin per unit and machine hours per unit for two products are as follows: product A, $10 and two hours; product B, $12 and three hours. Calculate the con...

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A job cost sheet for Rolen Company is shown below. Analyze a job cost sheet and prepare entries for manufacturing costs. Instructions a. On the basis of the foregoing data, answer the following ques...

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Lasik Look produces and sells high-end golf equipment. The company has recently been involved in developing various types of laser guns to measure distances on the golf course. The potential market fo...

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Mucky Duck makes swimsuits and sells them directly to retailers. Although Mucky Duck has a variety of suits, it does not make the allbody suit used by highly skilled swimmers. The market research depa...

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Select Corporation makes a commercial-grade cooking griddle. The following information is available for Select Corporation’s expected annual volume of 30,000 units: Use cost-plus pricing to determine...

Q: Gruner Corporation produces snowboards. The following cost information per unit is

Gruner Corporation produces snowboards. The following cost information per unit is available: direct materials $12; direct labour $8; variable manufacturing overhead $6; fixed manufacturing overhead $...

Q: Ahmed Corporation makes a mechanical stuffed alligator. The following information is

Ahmed Corporation makes a mechanical stuffed alligator. The following information is available for Ahmed Corporation’s expected annual volume of 500,000 units: Use cost-plus pricing...

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Roxy’s Recording Studio rents studio time to musicians in two-hour blocks. Each session includes the use of the studio facilities, a digital recording of the performance, and a professional music prod...

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Padong Remanufacturing rebuilds spot welders for manufacturers. The following budgeted cost data for 2020 are available for Padong: Use time-and-material pricing to determine bill. The company wants...

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Justin’s Custom Electronics (JCE) sells and installs complete security, computer, audio, and video systems for homes. On newly constructed homes, it provides bids using time-and-material pricing. The...

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YUX Corporation sells a single product for $50. Its management estimates the following revenues and costs for the year 2020: Determine the contribution margin ratio, break-even point in dollars, margi...

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Karl’s Klassic Kars restores classic automobiles to showroom status. Budgeted data for the current year are as follows: Use time-and-material pricing to determine bill. The company...

Q: La Mode Design Inc., a high-fashion women’s dress manufacturer

La Mode Design Inc., a high-fashion women’s dress manufacturer, is planning to market a new cocktail dress for the coming season. La Mode Design Inc. supplies retailers in Toronto, M...

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Manufacturing cost data for Pena Company, which uses a job-order cost system, are presented below. Analyze costs of manufacturing and determine missing amounts. Instructions Indicate the missing amo...

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Alpha International Corporation has two divisions, beta and gamma. Beta produces an electronic component that sells for $75 per unit, with the following costs based on its capacity of 200,000 units: D...

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The cycle division of TravelFast Company has the following cost data per unit for its most recent cycle, the Roadbuster: Determine minimum transfer price under different situations. The cycle divisi...

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The machining division has a capacity of 4,000 units. Its sales and cost data are: Determine minimum transfer price under different situations. Selling price per unit ………………………………….. $ 160 Variable m...

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The national division of Nero International Company is buying 20,000 widgets from an outside supplier at $75 per unit. Nero International’s overseas division, which is producing and selling widgets at...

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Travis Corporation produces high-performance rotors. It expects to produce 50,000 rotors in the coming year. It has invested $10 million to produce the rotors. The company has a required return on inv...

Q: High Sound Corporation manufactures car stereos. It is a division of

High Sound Corporation manufactures car stereos. It is a division of Quality Motors, which manufactures vehicles. High Sound sells car stereos to Quality Motors, as well as to other vehicle manufactur...

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The information for Ahmed Corporation is given in E9.20. Calculate total cost per unit, ROI, and markup percentages. Instructions a. Using absorption-cost pricing, calculate the markup percentage. b....

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Q: Firefly Corporation produces outdoor portable fireplace units. The following cost

Firefly Corporation produces outdoor portable fireplace units. The following cost information per unit is available: direct materials $21, direct labour $26, variable manufacturing overhead $16, fixed...

Q: Information for Caan Corporation is given in E9.22.

Information for Caan Corporation is given in E9.22. Calculate various amounts using absorption-cost pricing and variable-cost pricing. Instructions a. Calculate the markup percentage and target selli...

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Auto Glass Company (AGC) manufactures and sells windshield products. AGC entered into a one-time contract to produce an additional 1,000 windshields for the local public transit authority, at a price...

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Millefeuille Company applies operating overhead to photocopying jobs on the basis of machine hours used. It expects overhead costs to total $290,000 for the year and estimates machine usage at 125,000...

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Lafleur Corporation needs to set a target price for its newl designed product, M14-M16. The following data relate to it: Use cost-plus pricing to determine various amounts. These costs are based on...

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Berg and Son Ltd. builds custom-made pleasure boats that range in price from $10,000 to $250,000. For the past 30 years, Mr. Berg Sr. has determined the selling price of each boat by estimating the co...

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Bolus Computer Parts Ltd. is setting a selling price on a new component it has just designed and developed. The following cost estimates for this new component have been provided by the accounting dep...

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St-Cyr’s Electronic Repair Shop has budgeted the following time and material for 2020: Use time-and-material pricing to determine bill. St-Cyr’s budgets 5,000 hou...

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Ampro Inc. has two divisions. Division A makes and sells student desks. Division B manufactures and sells reading lamps. Determine minimum transfer price under different situations. Each desk has a re...

Q: Schuman Corporation produces microwave units. The following per-unit cost

Schuman Corporation produces microwave units. The following per-unit cost information is available: direct materials $36; direct labour $24; variable manufacturing overhead $18; fixed manufacturing ov...

Q: Gorham Manufacturing's sales slumped badly in 2020. For the first

Gorham Manufacturing's sales slumped badly in 2020. For the first time in its history, it operated at a loss. The company's income statement showed the following results from selling 60,000 units of p...

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Wordsmith is a publishing company with several different book lines. Each line has contracts with different authors. The company also owns a printing operation called Pronto Press. The book lines and...

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Zapp Manufacturing Company makes various electronic products. The company is divided into autonomous divisions that can either sell to internal units or sell externally. All divisions are located in b...

Q: Wood Inc. manufactures wood poles. Wood Inc. has two

Wood Inc. manufactures wood poles. Wood Inc. has two responsibility centres, harvesting and sawing, which are both evaluated as profit centres. The harvesting division does all the harvesting operatio...

Q: Next Level (NL) is a division of Global Electronics Inc

Next Level (NL) is a division of Global Electronics Inc. NL produces video game systems. These systems are sold to retailers. NL recently approached the manager of the personal computer (PC) division...

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A job cost sheet of Nilson Company is given below. Analyze a job cost sheet and prepare an entry for the completed job. Instructions a. Determine the source documents for direct materials, direct la...

Q: The Atlantic Company is a multidivisional company. Its managers have full

The Atlantic Company is a multidivisional company. Its managers have full responsibility for profits and complete autonomy to accept or reject transfers from other divisions. Division A produces a sub...

Q: Lemon Quench manufactures a soft drink. The company is organized into

Lemon Quench manufactures a soft drink. The company is organized into two divisions: glass and filling. The glass division makes bottles and sells them to the filling division. Each division manager r...

Q: Fast Buck Corporation needs to set a target price for its newly

Fast Buck Corporation needs to set a target price for its newly designed product EverRun. The following data relate to this new product: Calculate target price using absorption-cost and variable-cost...

Q: Weather Guard Windows Inc. is setting a target price on its

Weather Guard Windows Inc. is setting a target price on its newly designed tinted window. Cost data for the window at a budgeted volume of 4,000 units are as follows: Calculate various amounts using a...

Q: Computech Company operates as a decentralized multidivisional electronics company. Its laptop

Computech Company operates as a decentralized multidivisional electronics company. Its laptop division buys most of its monitors from the screen division. The screen division’s incremental costs for m...

Q: The vice-president of marketing, Carol Chow, thinks that

The vice-president of marketing, Carol Chow, thinks that her firm can increase sales by 15,000 units for each $5-per-unit reduction in its selling price. The company's current selling price is $90 per...

Q: Kirkland Metal Corporation has two divisions. The fabrication division transfers partially

Kirkland Metal Corporation has two divisions. The fabrication division transfers partially completed components to the assembly division at a predetermined transfer price. The fabrication division’s s...

Q: During the current year, Bierko Corporation expects to produce 10,

During the current year, Bierko Corporation expects to produce 10,000 units and has budgeted the following: net income $300,000; variable costs $1.1 million; and fixed costs $100,000. It has invested...

Q: The data for Kirkland Metal Corporation have been given in P9.

The data for Kirkland Metal Corporation have been given in P9.49A. Assume that the transfer price for the component has been set at $374, which is the fabrication division’s total cost plus a 10% mark...

Q: Wamser Corporation needs to set a target price for its newly designed

Wamser Corporation needs to set a target price for its newly designed product, E2-D2. The following data relate to it: Use cost-plus pricing to determine various amounts. These costs are based on a...

Q: Carrier Fabrication Company (CFC) manufactures and sells only one product

Carrier Fabrication Company (CFC) manufactures and sells only one product, a special front-mounting bicycle rack for large vehicles. CFC entered into a one-time contract to produce an additional 1,000...

Q: During January, its first month of operations, Reyes Tool &

During January, its first month of operations, Reyes Tool & Die accumulated the following manufacturing costs: raw materials $4,000 on account; factory labour $6,000, of which $5,200 relates to factor...

Q: Bosworth Electronics Inc. is setting a selling price on a new

Bosworth Electronics Inc. is setting a selling price on a new CDL component it has just developed. The accounting department has provided the following cost estimates for this component for a budgeted...

Q: Lemond Bike Repair Shop has budgeted the following time and material for

Lemond Bike Repair Shop has budgeted the following time and material for 2020: Use time-and-material pricing to determine bill. // Lemond budgets 2,500 hours of repair time in 2020. It will bill a...

Q: Pointe Claire Inc. operates as a decentralized multidivisional electronics company.

Pointe Claire Inc. operates as a decentralized multidivisional electronics company. It has two divisions. Division A transfers partially completed components to division B at a predetermined transfer...

Q: The data for Pointe Claire Inc. are given in P9.

The data for Pointe Claire Inc. are given in P9.55B. Assume that the transfer price has been set at $504, which is division A’s total cost plus a 20% markup. Division A’s total cost of a component is...

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Alice Oritz is the advertising manager for Value Shoe Store. She is currently working on a major promotional campaign. Her ideas include the installation of a new lighting system and increased display...

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Cosmic Sounds is a record company with different labels. Each label has contracts with various recording artists. It also owns a recording studio called Blast Off. The record labels and the recording...

Q: Sun Motors Inc. operates as a decentralized multidivisional car company.

Sun Motors Inc. operates as a decentralized multidivisional car company. Its safety division buys most of its airbags from the airbag division. The airbag division’s incremental costs for manufacturin...

Q: Chula Vista Pump Company makes irrigation pump systems. The company

Chula Vista Pump Company makes irrigation pump systems. The company is divided into several autonomous divisions that can either sell to internal units or sell externally. All divisions are located in...

Q: Swayze Small Engine Repair charges $42 per hour of labour.

Swayze Small Engine Repair charges $42 per hour of labour. It has a material loading percentage of 40%. On a recent job to replace the engine of a riding lawn mower, Swayze worked 10.5 hours and used...

Q: Heartland Engines is a division of EverGreen Lawn Equipment Company. Heartland

Heartland Engines is a division of EverGreen Lawn Equipment Company. Heartland makes engines for lawn mowers, snow blowers, and other types of lawn and garden equipment. It sells its engines to the co...

Q: Comput Industries is a high-tech company in the United States

Comput Industries is a high-tech company in the United States with several subsidiaries, including Cancomput, which is located in Canada, and Heavencomput, which is located in another country with ver...

Q: Garnett Printing Corp. uses a job-order cost system.

Garnett Printing Corp. uses a job-order cost system. The following data summarize the operations related to the first quarter's production: Prepare entries for manufacturing costs. 1. Materials purcha...

Q: Love Inc. manufactures a line of men’s colognes and aftershave lotions

Love Inc. manufactures a line of men’s colognes and aftershave lotions. The manufacturing process is basically a series of mixing operations, with the addition of certain aromatic an...

Q: Refer back to P9.51B, where we learned that Wamser

Refer back to P9.51B, where we learned that Wamser Corporation uses cost-plus pricing methods to set the target selling price of its product E2-D2. Because some managers prefer to work with absorption...

Q: Santana Furniture Inc. is setting a target price on its newly

Santana Furniture Inc. is setting a target price on its newly designed leather recliner sofa. Cost data for the sofa at a budgeted volume of 3,000 units are as follows: Calculate various amounts using...

Q: Poole Corporation has collected the following information after its first year of

Poole Corporation has collected the following information after its first year of sales. Net sales were $1.6 million on 100,000 units, selling expenses were $240,000 (40% variable and 60% fixed), dire...

Q: Family Inc. has two divisions. Division A makes and sells

Family Inc. has two divisions. Division A makes and sells Tshirts. Division B manufactures and sells ties. Determine minimum transfer price under different situations. Each T-shirt has a tie as one of...

Q: The Pacific Company is a multidivisional company. Its managers have full

The Pacific Company is a multidivisional company. Its managers have full responsibility for profits and complete autonomy to accept or reject transfers from other divisions. Division A produces a sub-...

Q: Aurora Manufacturing has multiple divisions that make a wide variety of products

Aurora Manufacturing has multiple divisions that make a wide variety of products. Recently the bearing division and the wheel division got into an argument over a transfer price. The wheel division ne...

Q: West-Coast Industries is a decentralized firm. It has two

West-Coast Industries is a decentralized firm. It has two production centres: Vancouver and Kamloops. Each one is evaluated based on its return on investment. Vancouver has the capacity to manufacture...

Q: Solco Industries is a decentralized company with two divisions: mining

Solco Industries is a decentralized company with two divisions: mining and processing. They are both evaluated as profit centres. The mining division transfers raw diamonds to the processing division....

Q: The machining division of ITA International has a capacity of 2,

The machining division of ITA International has a capacity of 2,000 units. Its sales and cost data are: Determine minimum transfer price. Selling price per unit ………………………………………… $ 80 Variable manufac...

Q: National Industries is a diversified corporation with separate operating divisions. Each

National Industries is a diversified corporation with separate operating divisions. Each division’s performance is evaluated based on its total dollar profits and return on division...

Q: At May 31, 2020, the accounts of Hannifan Manufacturing Company

At May 31, 2020, the accounts of Hannifan Manufacturing Company show the following: Prepare cost of goods manufactured schedule and partial financial statements. 1. May 1 inventories—Finished Goods $1...

Q: Future Industries operates as a decentralized, vertically integrated, multidivisional company

Future Industries operates as a decentralized, vertically integrated, multidivisional company. One of its divisions, the systems division, manufactures scientific instruments and uses the products of...

Q: Construction on the Atlantis Full-Service Car Wash is nearing completion

Construction on the Atlantis Full-Service Car Wash is nearing completion. The owner is Jay Giolti, a retired accounting professor. The car wash is strategically located on a busy street that separates...

Q: Kosinksi Manufacturing carries no inventories. Its product is manufactured only when

Kosinksi Manufacturing carries no inventories. Its product is manufactured only when a customer's order is received. It is then shipped immediately after it is made. For its fiscal year ended October...

Q: Giant Airlines operates out of three main “hub” airports in

Giant Airlines operates out of three main “hub” airports in Canada. Recently, Mosquito Airlines began operating a flight from Smallville into Giant’s Metropolis hub for $360. Giant Airlines offers a p...

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Paying for parking your car is never pleasant, but it hurts a lot when you have to pay to park your vehicle when you go to the hospital, either to visit someone who is ill or as a patient yourself. Ma...

Q: Part 1 Waterways uses time and material pricing when it bids

Part 1 Waterways uses time and material pricing when it bids on drainage projects. Budgeted data for 2020 for installation division 1 are as follows. Waterways desires a $23 profit margin per hour o...

Q: If ITA’s assembly division is currently buying from an outside supplier at

If ITA’s assembly division is currently buying from an outside supplier at $75 per unit, what will be the effect on overall company profits if internal sales for 400 units take place at the optimum tr...

Q: Use the data for ITA International from BE9.7, but

Use the data for ITA International from BE9.7, but assume that the units being requested are special high-performance units, and that the division’s variable cost would be $24 per unit. What is the mi...

Q: Laubitz Company begins operations on April 1. Information from job cost

Laubitz Company begins operations on April 1. Information from job cost sheets shows the following: Calculate work in process and finished goods from job cost sheets. Each job was sold for 25% above...

Q: Shown below are the job cost-related accounts for the law

Shown below are the job cost-related accounts for the law firm of De Witte, Ozols, and Morton and their manufacturing equivalents: Prepare entries for costs of services provided. Law Firm Accounts ……...

Q: Pedro Morales and Associates, a CPA firm, uses joborder costing

Pedro Morales and Associates, a CPA firm, uses joborder costing to capture the costs of its audit jobs. There were no audit jobs in process at the beginning of November. Listed below are data concerni...

Q: Easy Decorating uses a job-order costing system to collect the

Easy Decorating uses a job-order costing system to collect the costs of its interior decorating business. Each client's consultation is treated as a separate job. Overhead is applied to each job based...

Q: John Bourcier operates a small machine shop. He manufactures one standard

John Bourcier operates a small machine shop. He manufactures one standard product that is also available from many other similar businesses, and he also manufactures deluxe products to order. His acco...

Q: Newton Cellular Ltd. manufactures and sells the TopLine cellphone. For

Newton Cellular Ltd. manufactures and sells the TopLine cellphone. For its 2020 business plan, Newton Cellular estimated the following: Determine the contribution margin, break-even point, and target...

Q: The consulting firm CMA Financial employs 40 full-time staff.

The consulting firm CMA Financial employs 40 full-time staff. The estimated compensation per employee is $105,000 for 1,750 hours. It charges all direct labour costs to clients. It includes any other...

Q: Bertrand Manufacturing uses a job-order cost system and applies overhead

Bertrand Manufacturing uses a job-order cost system and applies overhead to production on the basis of direct labour costs. On January 1, 2020, Job No. 50 was the only job in process. The costs incurr...

Q: For the year ended December 31, 2020, the job cost

For the year ended December 31, 2020, the job cost sheets of DeVoe Company contained the following data: Prepare entries in a job-order cost system and a partial income statement. Other data: 1. Raw...

Q: Enos Inc. is a construction company specializing in custom patios.

Enos Inc. is a construction company specializing in custom patios. The patios are constructed of concrete, brick, fibreglass, and lumber, depending on customer preference. On June 1, 2020, the general...

Q: In January, Reyes Tool & Die requisitions raw materials for production

In January, Reyes Tool & Die requisitions raw materials for production as follows: Job 1 $900, Job 2 $1,400, Job 3 $700, and general factory use $800. Prepare a summary journal entry to record raw mat...

Q: Nicole Limited is a company that produces machinery to customer orders,

Nicole Limited is a company that produces machinery to customer orders, using a normal job-order cost system. It applies manufacturing overhead to production using a predetermined rate. This overhead...

Q: On November 30, 2020, there was a fire in the

On November 30, 2020, there was a fire in the factory of Able Manufacturing Limited, where you work as the controller. The work in process inventory was completely destroyed, but both the materials an...

Q: Agassi Company uses a job-order cost system in each of

Agassi Company uses a job-order cost system in each of its three manufacturing departments. Manufacturing overhead is applied to jobs on the basis of direct labour cost in Department D, direct labour...

Q: Red Fire Inc. produces fire trucks. The company uses a

Red Fire Inc. produces fire trucks. The company uses a normal job-order costing system to calculate its cost of goods manufactured. The company's policy is to price its job at cost plus 30% markup. On...

Q: Vargas Corporation's fiscal year ends on June 30. The following

Vargas Corporation's fiscal year ends on June 30. The following accounts are found in its job-order cost accounting system for the first month of the new fiscal year: Analyze manufacturing accounts an...

Q: Olin Beauty Corporation manufactures cosmetic products that are sold through a network

Olin Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission of 18% of sales. The forecast income statement for the year end...

Q: Robert Buey became chief executive officer of Phelps Manufacturing two years ago

Robert Buey became chief executive officer of Phelps Manufacturing two years ago. At the time, the company was reporting lagging profits and Robert was brought in to “stir things up.” The company has...

Q: Lowry Manufacturing uses a job-order cost system and applies overhead

Lowry Manufacturing uses a job-order cost system and applies overhead to production on the basis of direct labour hours. On January 1, 2020, Job No. 25 was the only job in process. The costs incurred...

Q: For the year ended December 31, 2020, the job cost

For the year ended December 31, 2020, the job cost sheets of Mazzone Company contained the following data: Prepare entries in a job-order cost system and a partial income statement. Other data: 1. R...

Q: Tel Corp. has the following estimated costs for 2020:

Tel Corp. has the following estimated costs for 2020: Calculate the predetermined overhead rate and job cost. Direct materials …………………………….. $ 160,000 Direct labour ………………………………… 2,000,000 Rent on fa...

Q: Giovanni Lofaro is a contractor specializing in custombuilt Jacuzzis. On May

Giovanni Lofaro is a contractor specializing in custombuilt Jacuzzis. On May 1, 2020, his ledger contains the following data: Prepare entries in a job-order cost system and cost of goods manufactured...

Q: SNC produces fire trucks. The company uses a normal joborder costing

SNC produces fire trucks. The company uses a normal joborder costing system to calculate its cost of goods manufactured. The company's policy is to price its job at cost plus 40% markup. On January 1,...

Q: Factory labour data for Reyes Tool & Die are given in BE3

Factory labour data for Reyes Tool & Die are given in BE3.3. Prepare an entry for the assignment of factory labour costs. Data from BE 3.3: During January, its first month of operations, Reyes Tool &...

Q: Laramie Ltd. uses a normal job-order cost system.

Laramie Ltd. uses a normal job-order cost system. At the beginning of the month of June, two orders were in process as follows: Prepare entries and close out under-or over-applied overhead. There wa...

Q: Net Play Company uses a job-order cost system in each

Net Play Company uses a job-order cost system in each of its three manufacturing departments. Manufacturing overhead is applied to jobs on the basis of direct labour cost in Department A, direct labou...

Q: Spivey Company's fiscal year ends on June 30. The following accounts

Spivey Company's fiscal year ends on June 30. The following accounts are found in its job-order cost accounting system for the first month of the new fiscal year: Analyze manufacturing accounts and de...

Q: Blazer Delivery is a rapidly growing delivery service. Last year

Blazer Delivery is a rapidly growing delivery service. Last year, 80% of its revenue came from the delivery of mailing “pouches” and small, standardized delivery boxes (which provides a 20% contributi...

Q: Martin Footwear Co. produces high-quality shoes. To prepare

Martin Footwear Co. produces high-quality shoes. To prepare for next year's marketing campaign, the company's controller has prepared the following information for the current year, 2020: Determine th...

Q: Price-Gordon Architectural Consultants Ltd. Uses a modified job-

Price-Gordon Architectural Consultants Ltd. Uses a modified job-order costing system to keep track of project costs. During October 2020, the firm worked on four projects. The following table provides...

Q: After deciding on a mortgage, one of the most difficult decisions

After deciding on a mortgage, one of the most difficult decisions for new homeowners is when and how to upgrade their home heating system. There are many different home heating fuels and types of equi...

Q: Pine Products Company uses a job-order cost system. For

Pine Products Company uses a job-order cost system. For a number of months there has been an ongoing rift between the sales department and the production department concerning a special-order product,...

Q: Avid Assemblers uses normal job-order costing to assign costs to

Avid Assemblers uses normal job-order costing to assign costs to products. The company assembles and packages 25 different products according to customer specifications. Products are worked on in batc...

Q: The following data were taken from the records of Cougar Enterprises,

The following data were taken from the records of Cougar Enterprises, a Canadian manufacturer that uses a normal job-order costing system: During December, the company worked on jobs numbered 70 thr...

Q: Baehr Company is a manufacturer with a fiscal year that runs from

Baehr Company is a manufacturer with a fiscal year that runs from July 1 to June 30. The company uses a normal job-order cost accounting system for its production costs. It uses a predetermined overhe...

Q: Triple C Ltd. is in the business of manufacturing cabinets,

Triple C Ltd. is in the business of manufacturing cabinets, computer stands, and countertops. Most of its jobs are contracts for home builders. The following information is available for the month of...

Q: ESU Printing provides printing services to many different corporate clients. Although

ESU Printing provides printing services to many different corporate clients. Although ESU bids on most jobs, some jobs, particularly new ones, are negotiated on a cost-plus basis. Cost-plus means that...

Q: Data pertaining to job cost sheets for Reyes Tool & Die are

Data pertaining to job cost sheets for Reyes Tool & Die are given in BE3.4 and BE3.5. Prepare the job cost sheets for each of the three jobs. (Note: You may omit the column for Manufacturing Overhead....

Q: You have a talent for sewing and designing. After you graduate

You have a talent for sewing and designing. After you graduate with a degree in fashion design, you start a small business with some financial help from your parents. Your business, Shrtz for Me, has...

Q: For Korb Company, actual sales are $1 million and break

For Korb Company, actual sales are $1 million and break-even sales are $840,000. Calculate (a) the margin of safety in dollars and (b) the margin of safety ratio. Calculate margin of safety and ratio...

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Based on the compatibility and efficiency of its newly designed sprinkler systems, Waterways was successful in its bid to upgrade the irrigation systems for 10 soccer fields owned by the local municip...

Q: Your roommate asks for your help in understanding the two types of

Your roommate asks for your help in understanding the two types of cost accounting systems. (a) Distinguish between the two types of cost accounting systems for your roommate. (b) Explain to your roo...

Q: Each day, Iwaniuk Corporation processes one tonne of a secret raw

Each day, Iwaniuk Corporation processes one tonne of a secret raw material into two resulting products, AB1 and XY1. When it processes one tonne of the raw material, the company incurs joint processin...

Q: During the first quarter, Phuong Company incurs the following direct labour

During the first quarter, Phuong Company incurs the following direct labour costs: January $40,000, February $30,000, and March $50,000. For each month, prepare the entry to assign overhead to product...

Q: Jamasji Engineering Contractors incurred service salaries and wages of $32,

Jamasji Engineering Contractors incurred service salaries and wages of $32,000 ($24,000 direct and $8,000 indirect) on an engineering project. The company applies overhead at a rate of 25% of direct l...

Q: In its first year of operation, Montreal Printing Shop estimated manufacturing

In its first year of operation, Montreal Printing Shop estimated manufacturing overhead costs and activity in order to determine a predetermined overhead rate. At year end, overhead was over-applied b...

Q: Waterways Corporation is a private company providing irrigation and drainage products and

Waterways Corporation is a private company providing irrigation and drainage products and services for residential, commercial, and public sector projects, including farms, parks, and sports fields. I...

Q: Million Dollar Mills is a manufacturing firm. The company carefully prepares

Million Dollar Mills is a manufacturing firm. The company carefully prepares all financial statements in accordance with Accounting Standards for Private Enterprises (ASPE) and gives a copy of all fin...

Q: Indicate whether the following statements are true or false. 1

Indicate whether the following statements are true or false. 1. Managerial accountants explain and report manufacturing and nonmanufacturing costs and determine cost behaviours, but are not involved i...

Q: Mike Cichanowski founded Wenonah Canoe and later purchased Current Designs, a

Mike Cichanowski founded Wenonah Canoe and later purchased Current Designs, a Canadian company that designs and manufactures kayaks. The kayak manufacturing facility is located just a few minutes from...

Q: The following CVP income statements are available for Oldham Company and Newton

The following CVP income statements are available for Oldham Company and Newton Company: Calculate the break-even point, margin of safety, and the degree of operating leverage and evaluate its impact...

Q: The following table compares various features between managerial and financial accounting:

The following table compares various features between managerial and financial accounting: Explain the distinguishing features of managerial accounting. // Instructions Complete the table above.

Q: The U.S. Institute of Management Accountants has developed ethical

The U.S. Institute of Management Accountants has developed ethical standards for managerial accountants. Explain the importance of business ethics. Instructions Identify the four specific standards....

Q: Listed below are the three functions of the management of an organization

Listed below are the three functions of the management of an organization. Identify the three broad functions of management. 1. Planning 2. Directing 3. Controlling Instructions Identify which of the...

Q: Phil Clark Jr., president of Waterways, was very pleased with

Phil Clark Jr., president of Waterways, was very pleased with how adopting a CVP approach to reporting operating income was helping management to make good business decisions with respect to planning,...

Q: The following is a list of terms related to a company's organizational

The following is a list of terms related to a company's organizational structure: Identify the role of management accountants in an organizational structure. 1. ______Board of directors 2. ______Chief...

Q: Financial accounting information and managerial accounting information have a number of distinguishing

Financial accounting information and managerial accounting information have a number of distinguishing characteristics, which are listed below. Explain the distinguishing features of managerial accoun...

Q: Chris Koplinski has prepared the following list of statements about managerial accounting

Chris Koplinski has prepared the following list of statements about managerial accounting and financial accounting. Explain the distinguishing features of managerial accounting. 1. Financial accountin...

Q: Love All is a fairly large company manufacturing hockey equipment, located

Love All is a fairly large company manufacturing hockey equipment, located in Toronto. The company manufactures hockey sticks, pucks, clothing, and skates, all bearing the company's distinctive logo,...

Q: Fontillas Manufacturing Inc. had sales of $2.4 million

Fontillas Manufacturing Inc. had sales of $2.4 million for the first quarter of 2020. In making the sales, the company incurred the following costs and expenses: Prepare CVP income statement. Prepar...

Q: Family Furniture Co. has two divisions: bedroom division and dining

Family Furniture Co. has two divisions: bedroom division and dining room division. The results of operations for the most recent quarter are as follows: Determine weighted-average contribution margin....

Q: Reyes Tool & Die begins operations on January 1. Because it

Reyes Tool & Die begins operations on January 1. Because it does all the work to customer specifications, the company decides to use a job-order costing system. Prepare a flowchart of a typical...

Q: Russell Corporation sells three different models of mosquito “zapper.” Model

Russell Corporation sells three different models of mosquito “zapper.” Model A12 sells for $50 and has variable costs of $40. Model B22 sells for $100 and has variable costs of $70. Model C124 sells f...

Q: Presto Candle Supply makes candles. The sales mix (as a

Presto Candle Supply makes candles. The sales mix (as a percentage of total dollar sales) of its three product lines is birthday candles 30%, standard tapered candles 50%, and large scented candles 20...

Q: Vince Company has a unit selling price of $250, variable

Vince Company has a unit selling price of $250, variable cost per unit of $160, and fixed costs of $135,000. Calculate break-even point in units. Instructions Calculate the break-even point in units...

Q: Queensland Company makes radios that sell for $30 each.

Queensland Company makes radios that sell for $30 each. For the coming year, management expects fixed costs to total $200,000 and variable costs to be $20 per unit. Calculate break-even point, margin...

Q: Chudzick Company has a factory machine with a book value of $

Chudzick Company has a factory machine with a book value of $180,000 and a remaining useful life of five years. A new machine is available at a cost of $300,000. This machine will have a five-year use...

Q: Naylor Manufacturing Inc. sold 8,000 units and recorded sales

Naylor Manufacturing Inc. sold 8,000 units and recorded sales of $400,000 for the first month of 2020. In making the sales, the company incurred the following costs and expenses. Prepare CVP income st...

Q: Cottonwood Company reports the following operating results for the month of April

Cottonwood Company reports the following operating results for the month of April. Calculate the break-even point and margin of safety under different alternatives. Management is considering the fol...

Q: Glacial Springs produces and sells water filtration systems for homeowners. Information

Glacial Springs produces and sells water filtration systems for homeowners. Information regarding its three models is shown below. Calculate sales mix, weighted-average contribution margin, and breake...

Q: Bergen Hospital is contemplating an investment in an automated surgical system.

Bergen Hospital is contemplating an investment in an automated surgical system. Its current process relies on a number of skilled physicians. The new equipment would employ a computer robotic system o...

Q: Kirkland Video Games Inc. is developing a new video game.

Kirkland Video Games Inc. is developing a new video game. It is the most sophisticated game on the market. It sells the video game for $250 per copy. Variable costs to produce and sell the video game...

Q: The Creekside Inn is a restaurant that specializes in southwestern style meals

The Creekside Inn is a restaurant that specializes in southwestern style meals in a moderate price range. Terry Ducasse, the manager of Creekside, has determined that during the past two years the sal...

Q: Panciuk Company has a unit selling price of $520, variable

Panciuk Company has a unit selling price of $520, variable costs per unit of $286, and fixed costs of $163,800. Calculate the break-even point in units using (a) the mathematical equation and (b) the...

Q: Jagswear Inc. earned operating income of $100,000 during

Jagswear Inc. earned operating income of $100,000 during 2020. The company wants to earn operating income of $140,000 during 2020. Its fixed costs are expected to be $56,000, and variable costs are ex...

Q: Trail King manufactures mountain bikes. Its sales mix and contribution margin

Trail King manufactures mountain bikes. Its sales mix and contribution margin information per unit are as follows: Calculate the break-even point in units for a company with more than one product. I...

Q: The Richibouctou Inn is trying to determine its breakeven point. The

The Richibouctou Inn is trying to determine its breakeven point. The inn has 75 rooms available that are rented at $50 a night. Operating costs are as follows: Calculate the break-even point and margi...

Q: In 2019, Demuth Company had a break-even point of

In 2019, Demuth Company had a break-even point of $350,000 based on a selling price of $5 per unit and fixed costs of $112,000. In 2020, the selling price and the variable cost per unit did not change...

Q: Lisah Inc. manufactures golf clubs in three models. For the

Lisah Inc. manufactures golf clubs in three models. For the year, the Big Bart line has a net loss of $10,000 from sales $200,000, variable costs $180,000, and fixed costs $30,000. If the Big Bart lin...

Q: In the month of June, New Day Spa served 560 clients

In the month of June, New Day Spa served 560 clients at an average price of $120. During the month, fixed costs were $21,024 and variable costs were 60% of sales. Calculate the contribution margin and...

Q: Johansen Company had $210,000 of operating income in 2020

Johansen Company had $210,000 of operating income in 2020, when the selling price per unit was $150, the variable costs per unit were $90, and the fixed costs were $570,000. Management expects per-uni...

Q: Moran Company reports the following operating results for the month of August

Moran Company reports the following operating results for the month of August: sales $310,000 (units 5,000); variable costs $217,000; and fixed costs $70,000. Management is considering the following i...

Q: Friendly Airways Inc., a small two-plane passenger airline,

Friendly Airways Inc., a small two-plane passenger airline, has asked for your assistance in some basic analysis of its operations. The planes seat 10 passengers each, and they fly commuters from Frie...

Q: Current Designs manufactures two different types of kayaks: rotomoulded kayaks

Current Designs manufactures two different types of kayaks: rotomoulded kayaks and composite kayaks. The following information is available for each product line. The company's fixed costs are $820,...

Q: Determine the missing amounts: Determine missing amounts for contribution margin

Determine the missing amounts: Determine missing amounts for contribution margin.

Q: Volmar Company had sales in 2020 of $1,250,

Volmar Company had sales in 2020 of $1,250,000 on 50,000 units. Variable costs totalled $600,000, and fixed costs totalled $500,000. Prepare a CVP income statement before and after changes in the bus...

Q: A firm sells its product for $30 per unit. Its

A firm sells its product for $30 per unit. Its direct material costs are $6 per unit and direct labour costs are $4. Fixed manufacturing overhead costs are $40,000 and variable overhead costs are $8 p...

Q: An investment banker is analyzing two companies that specialize in the production

An investment banker is analyzing two companies that specialize in the production and sale of candied apples. Old-Fashioned Apples uses a labour-intensive approach, and Mech-Apple uses a mechanized sy...

Q: Grass King manufactures lawn mowers, weed trimmers, and chainsaws.

Grass King manufactures lawn mowers, weed trimmers, and chainsaws. Grass King has fixed costs of $4.2 million. Its sales mix and contribution margin per unit are as follows: Calculate the break-even p...

Q: Rapid Auto has 200 auto-maintenance service outlets nationwide. It

Rapid Auto has 200 auto-maintenance service outlets nationwide. It provides two main lines of service: oil changes and brake repair. Oil changes and related services represent 70% of its sales and pro...

Q: Part 1 The vice-president of sales and marketing,

Part 1 The vice-president of sales and marketing, Madison Tremblay, is trying to plan for the coming year in terms of production needs to meet the forecasted sales. The board of directors is very supp...

Q: NYX Inc. sells its product for $24 per unit and

NYX Inc. sells its product for $24 per unit and variable costs are $14 per unit. Its fixed costs are $130,000. Calculate the required sales in units to achieve its target operating income of 10% of to...

Q: The degrees of operating leverage for Delta Corp. and Epsilon Co

The degrees of operating leverage for Delta Corp. and Epsilon Co. are 1.4 and 5.6, respectively. Both have operating incomes of $50,000. Determine their respective contribution margins. Determine cont...

Q: Sanjay's Shingle Corporation is considering the purchase of a new automated shingle

Sanjay's Shingle Corporation is considering the purchase of a new automated shingle-cutting machine. The new machine will reduce variable labour costs but will increase depreciation expense. The contr...

Q: Veejay Golf Accessories sells golf shoes, gloves, and a laser

Veejay Golf Accessories sells golf shoes, gloves, and a laser guided range-finder that measures distance. Shown below are unit cost and sales data: Calculate the break-even point in units for a compan...

Q: Presented below are the CVP income statements for Finch Company and Sparrow

Presented below are the CVP income statements for Finch Company and Sparrow Company. They are in the same industry, with the same operating incomes, but different cost structures. Calculate break-even...

Q: Infotrac Inc. sells a high-speed retrieval system for information

Infotrac Inc. sells a high-speed retrieval system for information. It provides the following information for the year. Identify differences between costing systems. Overhead is applied on the basis...

Q: Tool Time Inc. operates 20 injection moulding machines in the production

Tool Time Inc. operates 20 injection moulding machines in the production of tool boxes of four different sizes, named the Apprentice, the Handyman, the Journeyman, and the Professional. Classify each...

Q: Weber Industries has three activity cost pools and two products.

Weber Industries has three activity cost pools and two products. It estimates production of 3,000 units of Product BC113 and 1,400 of Product AD908. Having identified its activity cost pools and the c...

Q: At December 31, balances in Manufacturing Overhead are Diaz Company—

At December 31, balances in Manufacturing Overhead are Diaz Company—debit $1,200, Garcia Company—credit $900. Prepare the adjusting entry for each company at December 31, assuming the adjustment is ma...

Q: Good Harvest Company manufactures four lines of garden tools. As a

Good Harvest Company manufactures four lines of garden tools. As a result of an activity analysis, the accounting department has identified eight activity cost pools. Each of the product lines is prod...

Q: Ready Ride is a trucking company. It provides local, short

Ready Ride is a trucking company. It provides local, short-haul, and long-haul services. It has developed the following three cost pools. Apply ABC to a service company. Instructions a. Calculate th...

Q: Elle Inc. makes two types of handbags: standard and custom

Elle Inc. makes two types of handbags: standard and custom. The controller has decided to use a plant-wide overhead rate based on direct labour costs. The president has heard of activity-based costing...

Q: Khan Inc. has conducted the following analysis related to its product

Khan Inc. has conducted the following analysis related to its product lines using a traditional costing system (volume-based) and an activity-based costing system. Both the traditional and activity-ba...

Q: International Fabrics has budgeted overhead costs of $955,000.

International Fabrics has budgeted overhead costs of $955,000. It has allocated overhead on a plant-wide basis to its two products (wool and cotton) using direct labour hours, which are estimated to b...

Q: Mega Electronix sells television sets and Blu-ray DVD players.

Mega Electronix sells television sets and Blu-ray DVD players. The business is divided into two divisions along product lines. A variable cost income statement for a recent quarter's activity is prese...

Q: Alonzo Inc. manufactures two products: car wheels and truck wheels

Alonzo Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to each product line, the controller, YuYu Ortega, has developed the following informa...

Q: Shady Lady sells window coverings to both commercial and residential customers.

Shady Lady sells window coverings to both commercial and residential customers. The following information relates to its budgeted operations for the current year: Assign overhead using traditional cos...

Q: Galavic Corporation manufactures snowmobiles in its Blue Mountain plant. It has

Galavic Corporation manufactures snowmobiles in its Blue Mountain plant. It has budgeted the following costs for the first quarter's operations. Identify activity cost pools and cost drivers. Instru...

Q: Sassafras Inc. has conducted an analysis of overhead costs related to

Sassafras Inc. has conducted an analysis of overhead costs related to one of its product lines using a traditional costing system (volume based) and an activity-based costing system. Following are its...

Q: Peter Catalano's Verde Vineyards, in the Niagara Peninsula, produces three

Peter Catalano's Verde Vineyards, in the Niagara Peninsula, produces three varieties of wine: merlot, viognier, and pinot noir. His winemaster, Kyle Pohle, has identified the following activities as c...

Q: During the current month, Dalmar Company incurs the following manufacturing costs

During the current month, Dalmar Company incurs the following manufacturing costs: Prepare journal entries for manufacturing costs. 1. Purchased raw materials of $16,000 on account. 2. Incurred factor...

Q: Fontillas Instrument, Inc. manufactures two products: missile range instruments

Fontillas Instrument, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, it produced 50 range instruments and 300 pressure gauges and incurred estimated...

Q: H&Y Company uses four activity pools to apply overhead to

H&Y Company uses four activity pools to apply overhead to its products. Each activity has a cost driver used to allocate the overhead costs to the product. The activities and related overhead cost...

Q: Lim Clothing Company manufactures its own designed and labelled sports attire and

Lim Clothing Company manufactures its own designed and labelled sports attire and sells its products through catalogue sales and retail outlets. While Lim has used activity-based costing in its manufa...

Q: In an effort to expand the usefulness of its activity-based

In an effort to expand the usefulness of its activity-based costing system, Peter Catalano's Verde Vineyards decides to adopt activity-based management techniques (ABM). One of these ABM techniques is...

Q: The CVP income statements shown below are available for Billings Company and

The CVP income statements shown below are available for Billings Company and Bozeman Company. Calculate the degree of operating leverage and evaluate the impact of alternative cost structures on opera...

Q: Anna Bellatorre Inc. is interested in using its activity-based

Anna Bellatorre Inc. is interested in using its activity-based costing system to improve its operating efficiency and its profit margins by applying activity-based management techniques. As part of th...

Q: Duplessis and Najarali is a law firm that is initiating an activity

Duplessis and Najarali is a law firm that is initiating an activity-based costing system. Réjean Duplessis, the senior partner and a strong supporter of ABC, has prepared the following list of activit...

Q: Having itemized its costs for the first quarter of next year's budget

Having itemized its costs for the first quarter of next year's budget, Galavic Corporation wants to install an activity-based costing system. First, it identified the activity cost pools in which to...

Q: Otto Dieffenbach & Sons Inc. is a small manufacturing company that

Otto Dieffenbach & Sons Inc. is a small manufacturing company that uses activity-based costing. Dieffenbach & Sons accumulates overhead in the following activity cost pools. Classify activities by lev...

Q: FireOut Inc. manufactures steel cylinders and nozzles for two models of

FireOut Inc. manufactures steel cylinders and nozzles for two models of fire extinguishers: (1) a home fire extinguisher and (2) a commercial fire extinguisher. The home model is a high-volume (54,000...

Q: Altex Co. identifies the following activities that pertain to manufacturing overhead

Altex Co. identifies the following activities that pertain to manufacturing overhead: material handling, machine set-ups, factory machine maintenance, factory supervision, and quality control. For eac...

Q: Fishel Company is working on two job orders. The job cost

Fishel Company is working on two job orders. The job cost sheets show the following: Assign costs to work in process. Prepare the three summary entries to record the assignment of costs to Work in P...

Q: Allen Inc. is a manufacturer of quality shoes. The company

Allen Inc. is a manufacturer of quality shoes. The company has always used a plant-wide allocation rate for allocating manufacturing overhead to its products. The plant manager believes it is time to...

Q: Jacobson Electronics manufactures two HD television models: the Royale, which

Jacobson Electronics manufactures two HD television models: the Royale, which sells for $1,400, and a new model, the Majestic, which sells for $1,100. The production costs calculated per unit under tr...

Q: Kiddy Company manufactures bicycles. It recently received a request to manufacture

Kiddy Company manufactures bicycles. It recently received a request to manufacture 10 units of a mountain bike at a price lower than it normally accepts. Bruce, the sales manager, indicated that, if t...

Q: Imagen Arquitectónica of Tijuana, Mexico, is contemplating a major change

Imagen Arquitectónica of Tijuana, Mexico, is contemplating a major change in its cost structure. Currently, all of its drafting work is performed by skilled draftspersons. Alfredo Ayala, Imagen's owne...

Q: Stellar Stairs Co. designs and builds factory-made premium wooden

Stellar Stairs Co. designs and builds factory-made premium wooden stairways for homes. The manufactured stairway components (spindles, risers, hangers, hand rails) permit installation of stairways of...

Q: International Steel Company has budgeted manufacturing overhead costs of $1,

International Steel Company has budgeted manufacturing overhead costs of $1,930,000. It has allocated overhead on a plant-wide basis to its two products (soft steel and hard steel) using machine hours...

Q: Hy and van Lamsweerde is a public accounting firm that offers two

Hy and van Lamsweerde is a public accounting firm that offers two primary services: auditing and tax return preparation. A controversy has developed between the partners of the two service lines regar...

Q: GoGo Ltd. manufactures three models of children's swing sets: Standard

GoGo Ltd. manufactures three models of children's swing sets: Standard, Deluxe, and Super. The Standard set is made of steel, the Deluxe set is made of aluminum, and the Super set is made of a titaniu...

Q: VidPlayers Inc. manufactures two types of DVD players: a deluxe

VidPlayers Inc. manufactures two types of DVD players: a deluxe model and a superior model. The deluxe model is a multi-format progressive-scan DVD player with networking capability, Dolby digital, an...

Q: Tough Thermos Inc. manufactures two plastic thermos containers at its plastic

Tough Thermos Inc. manufactures two plastic thermos containers at its plastic moulding facility in Lethbridge, Alberta. Its large container, called the Ice House, has a volume of five litres, side car...

Q: Mars Company has four categories of overhead: purchasing and receiving

Mars Company has four categories of overhead: purchasing and receiving materials, machine operating costs, material handling, and shipping. The costs estimated for these categories for the coming year...

Q: During the current month, Seeza Corporation completed Job 310 and Job

During the current month, Seeza Corporation completed Job 310 and Job 312. Job 310 cost $60,000 and Job 312 cost $40,000. Job 312 was sold on account for $90,000. Journalize the entries for the comple...

Q: Ayala Company manufactures four products in a single production facility. The

Ayala Company manufactures four products in a single production facility. The company uses activity-based costing. The company has identified the following activities through its activity analysis: (a...

Q: Prime Furniture designs and builds premium factory-made wood armoires for

Prime Furniture designs and builds premium factory-made wood armoires for homes. All are made of white oak. Its budgeted manufacturing overhead costs for the year 2020 are as follows. Assign overhead...

Q: Ronald Enterprises Ltd. has estimated the following costs for producing and

Ronald Enterprises Ltd. has estimated the following costs for producing and selling 15,000 units of its product: Calculate the break-even point in units and target income after tax. Direct materials...

Q: Quality Paints Inc. uses a traditional cost accounting system to apply

Quality Paints Inc. uses a traditional cost accounting system to apply quality-control costs uniformly to all its products at a rate of 30% of the direct labour cost. The monthly direct labour cost fo...

Q: National Steel Company has budgeted manufacturing overhead costs of $2.

National Steel Company has budgeted manufacturing overhead costs of $2.5 million. It has allocated overhead on a plant-wide basis to its two products (Standard Steel and Deluxe Steel) using machine ho...

Q: Scalar Manufacturing produces automobile parts in batches in one continuous manufacturing process

Scalar Manufacturing produces automobile parts in batches in one continuous manufacturing process. The company uses direct labour hours to assign overhead to each part. Magda Malakova, the financial c...

Q: McDonald and O'Toole is a law firm that serves both individuals and

McDonald and O'Toole is a law firm that serves both individuals and corporations. A controversy has developed between the partners of the two service lines as to who is contributing the greater amount...

Q: ProDriver Inc. (PDI) recently started operations to obtain a

ProDriver Inc. (PDI) recently started operations to obtain a share of the growing market for golf equipment. PDI manufactures two models of specialty drivers: the Thunderbolt model and the Earthquake...

Q: For the past five years, Collins Ltd. has been running

For the past five years, Collins Ltd. has been running a consulting practice in which it provides two major services: general management consulting and executive training seminars. The CFO is not quit...

Q: Aerotech International Inc. of Montreal has supported a research and development

Aerotech International Inc. of Montreal has supported a research and development (R&D) department that for many years has been the sole contributor to the company's new products. The R&D activ...

Q: B & B Electronics Company manufactures two large-screen television models

B & B Electronics Company manufactures two large-screen television models: the Deluxe, which has been produced for many years and sells for $900, and the Flat, a new model, which sells for $1,260....

Q: For Dene Company, the predetermined overhead rate is 150% of

For Dene Company, the predetermined overhead rate is 150% of direct labour cost. During the month, Dene incurred $100,000 of factory labour costs, of which $85,000 is direct labour and $15,000 is indi...

Q: Wet Ride Inc. manufactures and distributes three types of water skis

Wet Ride Inc. manufactures and distributes three types of water skis: beginner, intermediate, and advanced. Production is highly automated for the beginner model, whereas the intermediate and advanced...

Q: The Peace Barber Shop employs four barbers. One barber,

The Peace Barber Shop employs four barbers. One barber, who also serves as the manager, is paid a salary of $3,900 per month. The other barbers are paid $1,900 per month. In addition, each barber is p...

Q: Coats Galore Inc. uses activity-based costing as the basis

Coats Galore Inc. uses activity-based costing as the basis for information to set prices for its six lines of seasonal coats. Calculate the activity-based overhead rates using the following budgeted d...

Q: The CEO of Walker Ltd. is currently investigating ways to modernize

The CEO of Walker Ltd. is currently investigating ways to modernize the company's manufacturing process. At the first staff meeting, the chief engineer presented a proposal for automating the assembly...

Q: Canadian Motorcycle Company (CMC) produces two models of motorcycles:

Canadian Motorcycle Company (CMC) produces two models of motorcycles: Faster and Slower. The company has five categories of overhead costs: purchasing, receiving, machine operating, handling, and ship...

Q: Java Inc. is a distributor and processor of a variety of

Java Inc. is a distributor and processor of a variety of different blends of coffee. The company buys coffee beans from around the world and roasts, blends, and packages them for resale. Java Inc. cur...

Q: Marcus Lim, the cost accountant for Hi-Power Mower Company

Marcus Lim, the cost accountant for Hi-Power Mower Company, recently installed activity-based costing at the company's western lawn tractor (riding mower) plant, where three models are manufactured: t...

Q: Look on the Internet for time management resources that are designed specifically

Look on the Internet for time management resources that are designed specifically for students. If you cannot find one, look at the University of Guelph library web page. Instructions Use the resourc...

Q: Computer Parts Inc., a manufacturer of computer chips, employs activity

Computer Parts Inc., a manufacturer of computer chips, employs activity-based costing. The following budgeted data for each of the activity cost pools are provided for the year 2020. Calculate activit...

Q: Hirani Novelty Company identified the following activities in its production and support

Hirani Novelty Company identified the following activities in its production and support operations. Classify each of these activities as either value-added or non–value-added. Classify activities as...

Q: Milner Manufacturing uses a job-order costing system. On

Milner Manufacturing uses a job-order costing system. On May 1, the company has a balance in Work in Process Inventory of $3,500 and two jobs in process: Job No. 429 $2,000, and Job No. 430 $1,500. Du...

Q: For Biswell Company, variable costs are 70% of sales and

For Biswell Company, variable costs are 70% of sales and fixed costs are $195,000. Calculate the required sales in dollars that are needed to achieve management's target operating income of $75,000. (...

Q: Wu and Martin is an architectural firm that is contemplating the installation

Wu and Martin is an architectural firm that is contemplating the installation of activity-based costing. The following activities are performed daily by staff architects. Classify these activities as...

Q: Quick Pix is a large digital processing centre that serves 130 outlets

Quick Pix is a large digital processing centre that serves 130 outlets in grocery stores, service stations, camera and photo shops, and drugstores in 16 nearby towns. Quick Pix operates 24 hours a day...

Q: Podrive Company manufactures computer hard drives. The market for hard drives

Podrive Company manufactures computer hard drives. The market for hard drives is very competitive. The current market price for a computer hard drive is $45. Podrive would like a profit of $15 per dri...

Q: Using the data in BE9.4, calculate the markup percentage

Using the data in BE9.4, calculate the markup percentage using the absorption-cost approach. Calculate markup percentage using absorption-cost approach. Data from BE9.4: Schuman Corporation produces...

Q: Using the data in BE9.4, calculate the markup percentage

Using the data in BE9.4, calculate the markup percentage using variable-cost pricing. Calculate markup percentage using variable-cost approach. Data from BE9.4: Schuman Corporation produces microwave...

Q: Clear Water is considering introducing a water filtration device for its one

Clear Water is considering introducing a water filtration device for its one-litre water bottles. Market research indicates that 1 million units can be sold if the price is no more than $3. If Clear W...

Q: Floor Show Corporation produces area rugs. The following perunit cost information

Floor Show Corporation produces area rugs. The following perunit cost information is available: direct materials $18, direct labour $9, variable manufacturing overhead $5, fixed manufacturing overhead...

Q: Presented below are data for ProTech Appliance Repair Shop: Use

Presented below are data for ProTech Appliance Repair Shop: Use time-and-material pricing to determine bill. Repair technicians' wages ……. $120,000 Fringe benefits ………………………. 40,000 Overhead ……………………...

Q: The fastener division of Northern Textile Industries manufactures zippers and then sells

The fastener division of Northern Textile Industries manufactures zippers and then sells them to customers for $8 per unit. Its variable cost is $3 per unit, and its fixed cost per unit is $1.50. Mana...

Q: Culver Cheese Company has developed a new cheese slicer called the Slim

Culver Cheese Company has developed a new cheese slicer called the Slim Slicer. The company plans to sell this slicer through its monthly catalogue. Given market research, Culver management believes t...

Q: At the end of June, the manager of the B.

At the end of June, the manager of the B.C. manufacturing plant was provided with the following variance analysis report. The manager immediately called the production supervisor, demanding an expla...

Q: Samano Industries has adopted the following production budget for the four quarters

Samano Industries has adopted the following production budget for the four quarters of 2020: Prepare a direct materials purchases budget. Each unit requires 4 kg of raw materials costing $6 per kilo...

Q: The manufacturing overhead budget for Dillons Company contains the following items:

The manufacturing overhead budget for Dillons Company contains the following items: Variable expenses ……………………………………. Indirect materials …………………….. $24,000 Indirect labour ……………………………. 12,000 Mainten...

Q: Agmar Professionals, a management consulting firm, specializes in strategic planning

Agmar Professionals, a management consulting firm, specializes in strategic planning for financial institutions. Tim Agler and Padmasree Marlin, partners in the firm, are assembling a new strategic pl...

Q: Mo Coughlin and Associates is a medium-sized company located near

Mo Coughlin and Associates is a medium-sized company located near a large metropolitan area in the Prairies. The company manufactures cabinets of mahogany, oak, and other fine woods for use in expensi...

Q: You have started working as a cost accountant for a firm that

You have started working as a cost accountant for a firm that has only been in business for one month. The firm is able to buy a new type of biodegradable plastic at a fixed price of $100 per roll. Th...

Q: The Kohler Chemical Manufacturing Company produces two primary chemical products to be

The Kohler Chemical Manufacturing Company produces two primary chemical products to be used as base ingredients for a variety of products. The 2020 budget for the two products (in thousands) was as fo...

Q: Delta Manufacturing Company uses a standard cost system in accounting for the

Delta Manufacturing Company uses a standard cost system in accounting for the cost of its main product. The following standards have been established for the direct manufacturing costs per unit: Dire...

Q: At Camden Manufacturing Company, production workers in the painting department are

At Camden Manufacturing Company, production workers in the painting department are paid based on productivity. The labour time standard for a unit of production is established through periodic time st...

Q: In 2013, CPA Canada was established with the goal of uniting

In 2013, CPA Canada was established with the goal of uniting the three accounting designations—CA, CGA, and CMA—into one designation: the CPA, or Chartered Professional Accountant. Each province and t...

Q: You are an accountant in the budgetary, projections, and special

You are an accountant in the budgetary, projections, and special projects department of Cross Canada Inc., a large manufacturing company. The president, Karim Bousalloum, asks you on very short notice...

Q: In this chapter, you learned about the benefits of budgeting for

In this chapter, you learned about the benefits of budgeting for a business. It is also important for individuals, especially students. Jo is an accounting major. Jo's estimate of expenses for the nex...

Q: On January 1, 2021, the Chinlee Company budget committee reached

On January 1, 2021, the Chinlee Company budget committee reached agreement on the following data for the six months ending June 30, 2021: Prepare production and direct materials budgets by quarters fo...

Q: Madison Company purchased the Tek Company three years ago. Before

Madison Company purchased the Tek Company three years ago. Before the acquisition, Tek manufactured and sold plastic products to various customers. Tek has since become a division of Madison and now m...

Q: Raddington Industries produces tool and die machinery for manufacturers. In 2010

Raddington Industries produces tool and die machinery for manufacturers. In 2010, the company acquired one of its suppliers of alloy steel plates, Reigis Steel Company. In order to manage the two sepa...

Q: The performance of the division manager of Rarewood Furniture is measured by

The performance of the division manager of Rarewood Furniture is measured by the ROI, defined as divisional segment income divided by the gross book value of total divisional assets. For existing oper...

Q: A company operates five different plants, located in Vancouver, Edmonton

A company operates five different plants, located in Vancouver, Edmonton, Toronto, Montreal, and Halifax. The total company operating income is $1,900,275. The following information was collected for...

Q: Canadian Products Corporation participates in a highly competitive industry. To compete

Canadian Products Corporation participates in a highly competitive industry. To compete successfully and reach its profit goals, the company has chosen the decentralized form of organization. The comp...

Q: You have received a promotion and are now the manager of the

You have received a promotion and are now the manager of the Lakeview Lounge at the hotel where you have been working for some time. The Lakeview Lounge provides alcoholic and non-alcoholic drinks, pl...

Q: Électronique Instruments, a rapidly expanding electronic parts distributor, is formulating

Électronique Instruments, a rapidly expanding electronic parts distributor, is formulating its plans for 2020. John Kedrowski, the firm's director of marketing, has completed his 2020 forecast and is...

Q: Rapid Repair Services Inc. is trying to establish the standard labour

Rapid Repair Services Inc. is trying to establish the standard labour cost of a typical oil change. The following data have been collected from time and motion studies conducted over the past month:...

Q: Kopecky Inc., which produces a single product, has prepared the

Kopecky Inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product: Direct materials (6 kg at $2.50 per kilogram) ……………………… $15.00 Direct labour...

Q: Buerhle Company purchased (at a cost of $12,800

Buerhle Company purchased (at a cost of $12,800) and used 3,300 kg of materials during May. Buerhle’s standard cost of materials per unit produced is based on 2 kg per unit at a cost $4 per kilogram....

Q: Black Rose Company has always done some planning for the future,

Black Rose Company has always done some planning for the future, but the company has never prepared a formal budget. Now that the company is growing larger, it is considering preparing a budget. Expla...

Q: During March 2020, Garner Tool & Die Company worked on four

During March 2020, Garner Tool & Die Company worked on four jobs. A review of the direct labour costs reveals the following summary data: Prepare a variance report for direct labour. Analysis re...

Q: Tyson Chandler Company's sales budget projects unit sales of part 198Z of

Tyson Chandler Company's sales budget projects unit sales of part 198Z of 10,000 units in January, 12,000 units in February, and 13,000 units in March. Each unit of part 198Z requires 2 kg of material...

Q: The following direct materials and direct labour data are for the operations

The following direct materials and direct labour data are for the operations of Batista Manufacturing Company for the month of August: Instructions a. Calculate the total, price, and quantity varian...

Q: Haven Company has accumulated the following budget data for the year 2020

Haven Company has accumulated the following budget data for the year 2020: Prepare a budgeted income statement for the year. 1. Sales: 30,000 units; unit selling price $80 2. Cost of one unit of finis...

Q: The following information was taken from the annual manufacturing overhead cost budget

The following information was taken from the annual manufacturing overhead cost budget of Fernetti Company: Variable manufacturing overhead costs …………………………. $34,650 Fixed manufacturing overhead cost...

Q: Nunez Company expects to have a cash balance of $45,

Nunez Company expects to have a cash balance of $45,000 on January 1, 2020. Relevant monthly budget data for the first two months of 2020 are as follows: Prepare a cash budget for two months. 1. Colle...

Q: The loan department of Your Local Bank uses standard costs to determine

The loan department of Your Local Bank uses standard costs to determine the overhead cost of processing loan applications. During the current month, a fire occurred, and the accounting records for the...

Q: Pink Martini Corporation is projecting a cash balance of $30,

Pink Martini Corporation is projecting a cash balance of $30,000 in its December 31, 2019, balance sheet. Pink Martini's schedule of expected collections from customers for the first quarter of 2020 s...

Q: Jackson Company’s overhead rate was based on estimates of $200,

Jackson Company’s overhead rate was based on estimates of $200,000 for overhead costs and 20,000 direct labour hours. Jackson’s standards allow two hours of direct labour per unit produced. Productio...

Q: Rondell Company uses a standard cost system. Indirect costs were budgeted

Rondell Company uses a standard cost system. Indirect costs were budgeted at $200,000 plus $15 per direct labour hour. The overhead rate is based on 10,000 hours. Actual results were: Standard direct...

Q: Lovitz Company is planning to produce 2,000 units of a

Lovitz Company is planning to produce 2,000 units of a product in 2020. Each unit requires 3 kg of materials at $5 per kilogram and a half hour of labour at $15 per hour. The overhead rate is 70% of d...

Q: Environmental Landscaping Inc. is preparing its budget for the first quarter

Environmental Landscaping Inc. is preparing its budget for the first quarter of 2020. The next step is to prepare a cash receipts schedule and a cash payments schedule. The following information has b...

Q: Jay Levitt Company budgeted the following cost standards for the current year

Jay Levitt Company budgeted the following cost standards for the current year: Direct materials (2 kg of plastic at $5 per kilogram) ………….. $10.00 Direct labour (2 hours at $12 per hour) ………………………………...

Q: Imperial Landscaping plants grass seed as basic landscaping for business terrains.

Imperial Landscaping plants grass seed as basic landscaping for business terrains. During a recent month, the company worked on three projects (Ames, Korman, and Stilles). The company is interested in...

Q: Archangel Corporation prepared the following variance report. / /

Archangel Corporation prepared the following variance report. / / Instructions Fill in the appropriate amounts or letters for the question marks in the report. Prepare an income statement for manage...

Q: Carlos Company uses a standard cost accounting system. During January

Carlos Company uses a standard cost accounting system. During January, the company reported the following manufacturing variances: In addition, 8,000 units of product were sold at $8 per unit. Each...

Q: The following is a list of terms related to performance evaluation:

The following is a list of terms related to performance evaluation: 1. Balanced scorecard 2. Variance 3. Learning and growth perspective 4. Non-financial measures 5. Customer perspective 6. Internal p...

Q: Tovar Company uses a standard cost accounting system. Some of the

Tovar Company uses a standard cost accounting system. Some of the ledger accounts have been destroyed in a fire. The controller asks for your help in reconstructing some missing entries and balances....

Q: Data for Kopecky Inc. are given in E12.23.

Data for Kopecky Inc. are given in E12.23. Instructions Journalize the entries to record the materials and labour variances. Data from E12.23: Kopecky Inc., which produces a single product, has prep...

Q: Data for Rondell Company are given in E12.30.

Data for Rondell Company are given in E12.30. Instructions a. Journalize the incurrence of the overhead costs and the application of overhead to the job, assuming a standard cost accounting system is...

Q: Marley Company installed a standard cost system on January 1.

Marley Company installed a standard cost system on January 1. Selected transactions for the month of January are as follows: 1. Purchased 24,000 units of raw materials on account at a cost of $4.50 pe...

Q: Raul Mondesi manufactures and sells homemade wine, and he wants to

Raul Mondesi manufactures and sells homemade wine, and he wants to develop a standard cost per litre. The following are required for production of a 200-litre batch: 90 litres of grape concentrate at...

Q: Pacer Inc. is preparing its direct labour budget for 2020 from

Pacer Inc. is preparing its direct labour budget for 2020 from the following production budget for a full calendar year: Prepare a direct labour budget. Each unit requires 1.5 hours of direct labour...

Q: Keyser Company is preparing its manufacturing overhead budget for 2020. Relevant

Keyser Company is preparing its manufacturing overhead budget for 2020. Relevant data are as follows: Prepare a manufacturing overhead budget for the year. 1. Units to be produced (by quarters): 10,00...

Q: Lockwood Company combines its operating expenses for budget purposes in a selling

Lockwood Company combines its operating expenses for budget purposes in a selling and administrative expenses budget. For the first six months of 2020, the following data are available: Prepare a sell...

Q: NIU Company's budgeted sales and direct materials purchases are as follows:

NIU Company's budgeted sales and direct materials purchases are as follows: Prepare schedules of expected collections and payments. NIU's sales are 40% cash and 60% credit. It collects credit sales...

Q: Pisani Dental Clinic is a medium-sized dental service specializing in

Pisani Dental Clinic is a medium-sized dental service specializing in family dental care. The clinic is currently preparing the budget for the first two quarters of 2020. It still needs to do only the...

Q: In May 2020, the budget committee of Big Jim Stores assembles

In May 2020, the budget committee of Big Jim Stores assembles the following data for preparing the merchandise purchases budget for the month of June: Prepare a purchases budget and budgeted income st...

Q: Jim Thome has prepared the following list of statements about budgetary control

Jim Thome has prepared the following list of statements about budgetary control. Understand the concept of budgetary control. 1. Budget reports compare actual results with planned objectives. 2. All b...

Q: Pargo Company budgeted selling expenses of $30,000 in January

Pargo Company budgeted selling expenses of $30,000 in January, $35,000 in February, and $40,000 in March. Actual selling expenses were $31,200 in January, $34,525 in February, and $46,000 in March. Pr...

Q: Raney Company uses a flexible budget for manufacturing overhead that is based

Raney Company uses a flexible budget for manufacturing overhead that is based on direct labour hours. The variable manufacturing overhead costs per direct labour hour are as follows: Prepare flexible...

Q: Using the information in E11.19, assume that in July

Using the information in E11.19, assume that in July 2020, Raney Company incurs the following manufacturing overhead costs: Prepare flexible budget reports for manufacturing overhead costs, and commen...

Q: Muhsin Company has gathered the following information about its product:

Muhsin Company has gathered the following information about its product: Direct materials: Each unit of product contains 4.5 kg of materials. The average waste and spoilage per unit produced under nor...

Q: Vincent Company uses flexible budgets to control its selling expenses. Monthly

Vincent Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $170,000 to $200,000. Variable costs and their percentage relationship to sales are as f...

Q: The actual selling expenses incurred in March 2020 by Vincent Company are

The actual selling expenses incurred in March 2020 by Vincent Company are as follows: Prepare flexible budget reports for selling expenses. / / Instructions a. Prepare a flexible budget performance...

Q: Sublette Company's manufacturing overhead budget for the first quarter of 2020 contained

Sublette Company's manufacturing overhead budget for the first quarter of 2020 contained the following data: Prepare a flexible budget report and a responsibility report for manufacturing overhead....

Q: As sales manager, Kajsa Keyser was given the following static budget

As sales manager, Kajsa Keyser was given the following static budget report for selling expenses in the clothing department of Dunham Company for the month of October: Prepare and discuss a flexible b...

Q: Pronto Plumbing Company is a newly formed company that specializes in plumbing

Pronto Plumbing Company is a newly formed company that specializes in plumbing services for home and business. The owner, Paul Pronto, had divided the company into two segments: home plumbing services...

Q: BioFarm Inc. wants to replace its current equipment with new high

BioFarm Inc. wants to replace its current equipment with new high-tech equipment. The existing equipment was purchased five years ago at a cost of $120,000. At that time, the equipment had an expected...

Q: The Taylor Company Limited reported a cost of goods sold of $

The Taylor Company Limited reported a cost of goods sold of $640,000 last year, when 20,000 units were produced and sold. The cost of goods sold was 35% materials, 42% direct labour, and 23% overhead....

Q: Saskatoon First Company must expand its manufacturing capabilities to meet the growing

Saskatoon First Company must expand its manufacturing capabilities to meet the growing demand for its products. The first alternative is to expand its current manufacturing facility, which is located...

Q: Madden Limited is the largest Canadian producer of dairy products. The

Madden Limited is the largest Canadian producer of dairy products. The company needs to replace its equipment. The current equipment was purchased 18 years ago at a cost of $2 million, and it was depr...

Q: K&G Company currently sells 1 million units per year of

K&G Company currently sells 1 million units per year of a product to one customer at a price of $3.80 per unit. The customer requires that the product be exclusive and expects no increase in sales dur...

Q: The standard cost of product B manufactured by Bhaskara Company includes three

The standard cost of product B manufactured by Bhaskara Company includes three units of direct materials at $5.00 per unit. During June, the company purchases 29,000 units of direct materials at a cos...

Q: The Three Stages partnership is considering three long term capital investment proposals

The Three Stages partnership is considering three long term capital investment proposals. Each investment has a useful life of five years. Relevant data on each project are as follows: Calculate the a...

Q: ALGS Ltd. wants to purchase a new machine for $30

ALGS Ltd. wants to purchase a new machine for $30,000, excluding $1,500 in installation costs. The old machine was bought five years ago and had an expected economic life of 10 years without salvage v...

Q: Magenta Inc. is considering modernizing its production facility by investing in

Magenta Inc. is considering modernizing its production facility by investing in new equipment and selling the old equipment. The following information has been collected on this investment: Calculate...

Q: MCA Corporation is reviewing an investment proposal. The schedule below

MCA Corporation is reviewing an investment proposal. The schedule below presents the initial cost and estimates of the book value of the investment at the end of each year, the net cash flows for each...

Q: Prestige Auto Care is considering the purchase of a new tow truck

Prestige Auto Care is considering the purchase of a new tow truck. The garage currently has no tow truck, and the $60,000 price tag for a new truck would be a major expenditure for it. Jenna Lind, own...

Q: Berens River Clinic is considering investing in new heart monitoring equipment.

Berens River Clinic is considering investing in new heart monitoring equipment. It has two options: Option A would have an initial lower cost but would require a significant expenditure for rebuilding...

Q: Bonita Corp. is thinking about opening a soccer camp in southern

Bonita Corp. is thinking about opening a soccer camp in southern Ontario. In order to start the camp, the company would need to purchase land and build four soccer fields and a dormitory-type sleeping...

Q: Azim Electronics Inc. reported a cost of goods sold of $

Azim Electronics Inc. reported a cost of goods sold of $900,000 last year, when it produced and sold 25,000 units. The cost of goods sold was 25% materials, 65% direct labour, and 10% overhead. The co...

Q: The partnership of Lou and Bud is considering three long-term

The partnership of Lou and Bud is considering three long-term capital investment proposals. Relevant data on each project are as follows: The salvage value is expected to be zero at the end of each...

Q: Biotec Inc. wants to replace its R&D equipment with

Biotec Inc. wants to replace its R&D equipment with new high-tech equipment. The existing equipment was purchased five years ago at a cost of $150,000. At that time, the equipment had an expected life...

Q: Pagley Company’s standard labour cost of producing one unit of product DD

Pagley Company’s standard labour cost of producing one unit of product DD is four hours at the rate of $12.00 per hour. During August, 40,800 hours of labour are incurred at a cost of $12.10 per hour...

Q: K&M International is considering modernizing its production facility by investing

K&M International is considering modernizing its production facility by investing in new equipment and selling the old equipment. The following information has been collected on this investment:...

Q: A company currently sells 850,000 units per year of a

A company currently sells 850,000 units per year of a product to one customer at a price of $0.80 per unit. The customer requires that the product be exclusive and expects no increase in sales during...

Q: Vorteck Inc. manufactures snowsuits. Vorteck is considering purchasing a new

Vorteck Inc. manufactures snowsuits. Vorteck is considering purchasing a new sewing machine at a cost of $2.5 million. Its existing machine was purchased five years ago at a price of $1.8 million, and...

Q: The Fort McMurchy Sanitation Company is considering the purchase of a garbage

The Fort McMurchy Sanitation Company is considering the purchase of a garbage truck. The $77,000 price tag for a new truck would represent a major expenditure for the company. Kalia Vang, owner of the...

Q: Benjamin Corp. is thinking about opening a hockey camp in Barrie

Benjamin Corp. is thinking about opening a hockey camp in Barrie, Ontario. In order to start the camp, the company would need to purchase land and build four ice rinks and a dormitory-type sleeping an...

Q: Aqua Tech Testing is considering investing in a new testing device.

Aqua Tech Testing is considering investing in a new testing device. It has two options. Option A would have an initial lower cost but would require a significant expenditure for rebuilding after five...

Q: ICA Corporation is reviewing an investment proposal. The schedule below

ICA Corporation is reviewing an investment proposal. The schedule below presents the initial cost and estimates of the investment’s book value at the end of each year, the net cash f...

Q: Platteville Eye Clinic is considering investing in new optical-scanning equipment

Platteville Eye Clinic is considering investing in new optical-scanning equipment. It has two options: Option A would have an initial lower cost but would require a significant expenditure for rebuild...

Q: Wahlen Farm Supply Company manufactures and sells a pesticide called Basic II

Wahlen Farm Supply Company manufactures and sells a pesticide called Basic II. The following data are available for preparing budgets for Basic II for the first two quarters of 2020. Prepare a budgete...

Q: Quinn Ltd. is preparing its annual budgets for the year ending

Quinn Ltd. is preparing its annual budgets for the year ending December 31, 2020. Accounting assistants provide the following data: Prepare sales, production, direct materials, direct labour, and inco...

Q: Mega Company is considering the purchase of a new machine. The

Mega Company is considering the purchase of a new machine. The invoice price of the machine is $75,000, freight charges are estimated to be $4,000, and installation costs are expected to be $6,000. Th...

Q: Litwin Industries had sales in 2019 of $5.6 million

Litwin Industries had sales in 2019 of $5.6 million (800,000 units) and a gross profit of $1,344,000. Management is considering two alternative budget plans to increase its gross profit in 2020. Prepa...

Q: The following data are for the operations of Zoë's Fashion Footwear Ltd

The following data are for the operations of Zoë's Fashion Footwear Ltd., a retail store: Prepare a merchandise purchases budget and a budgeted income statement. 1. Sales Forecast—2020 April …………………....

Q: The Big Boy Company is in a seasonal business and prepares quarterly

The Big Boy Company is in a seasonal business and prepares quarterly budgets. Its fiscal year runs from July 1 through June 30. Production occurs only in the first quarter (July to September), but sa...

Q: Return on investment is often expressed as follows: Compare and

Return on investment is often expressed as follows: Compare and contrast performances under ROI and residual income. Instructions a. Explain the advantages of breaking down the ROI calculation into t...

Q: Oakley Company estimates that 360,000 direct labour hours will be

Oakley Company estimates that 360,000 direct labour hours will be worked in the packaging department during 2020. Based on that, it has calculated the following budgeted manufacturing overhead cost da...

Q: Finesse Company manufactures tablecloths. Sales have grown rapidly over the past

Finesse Company manufactures tablecloths. Sales have grown rapidly over the past two years. As a result, the president has installed a budgetary control system for 2020. The following data were used i...

Q: Ranier Corporation manufactures a single product. The standard cost per unit

Ranier Corporation manufactures a single product. The standard cost per unit of the product is shown below: Calculate variances. Direct materials—1.5 kg of plastic at $8 per kilogram ………….. $12.00 Di...

Q: Sasha Clothiers is a small company that manufactures oversize suits. The

Sasha Clothiers is a small company that manufactures oversize suits. The company uses a standard cost accounting system. In May 2020, it produced 11,200 suits. Calculate variances and identify signifi...

Q: Milberg Co. uses absorption costing and standard costing to improve cost

Milberg Co. uses absorption costing and standard costing to improve cost control. Calculate variances. In 2020, the total budgeted overhead rate was $1.55 per direct labour hour. When preparing the bu...

Q: Harbaugh Manufacturing company uses a standard cost accounting system. In 2020

Harbaugh Manufacturing company uses a standard cost accounting system. In 2020, 45,000 units were produced. Each unit took several kilograms of direct materials and two standard hours of direct labou...

Q: Nien Company accumulates the following data for a proposed capital investment:

Nien Company accumulates the following data for a proposed capital investment: cash cost, $215,000; net annual cash flows, $40,000; present value factor of cash inflows for 10 years, 5.65 (rounded). D...

Q: Ronaldo Manufacturing Company uses a standard cost system in accounting for the

Ronaldo Manufacturing Company uses a standard cost system in accounting for the cost of one of its products. The budgeted monthly production is 1,750 units per month. The standard direct labour cost i...

Q: You have been given the following information about the production of Theta

You have been given the following information about the production of Theta Co. and are asked to provide the plant manager with information for a meeting with the vice-president of operations: Determi...

Q: Biotech Inc. applies overhead based on direct labour hours.

Biotech Inc. applies overhead based on direct labour hours. Three direct labour hours are required for each unit of product. Planned production for the period was set at 8,100 units. Manufacturing ove...

Q: The Multi-Tool Manufacturing Company uses a standard cost system.

The Multi-Tool Manufacturing Company uses a standard cost system. Stéphanie Roget, a financial analyst for Multi-Tool Manufacturing Company, has been given information with respect to standard cost va...

Q: Service Farm Labs Inc. provides mad cow disease testing for both

Service Farm Labs Inc. provides mad cow disease testing for both provincial and federal government agriculture agencies. Because the company’s customers are government agencies, prices are strictly re...

Q: Finley Manufacturing Corporation accumulates the following data for jobs started and finished

Finley Manufacturing Corporation accumulates the following data for jobs started and finished during the month of June 2020: Calculate variances and prepare an income statement. Overhead is applied...

Q: Berman Corporation uses standard costs with its job order cost accounting system

Berman Corporation uses standard costs with its job order cost accounting system. In January, an order (Job No. 12) for 1,950 units of product B was received. The standard cost of one unit of product...

Q: Azim Shirts Inc. manufactures sweatshirts for large stores. The standard

Azim Shirts Inc. manufactures sweatshirts for large stores. The standard costs for a dozen sweatshirts are: Calculate variances and prepare journal entries. Direct materials …&aci...

Q: Vergados Brothers is trying to estimate the amount of inventory it needs

Vergados Brothers is trying to estimate the amount of inventory it needs to purchase next month (April). The controller likes to have twice the number of units he expects to sell on hand at the beginn...

Q: Raddington Inc. makes and sells chairs. The controller is responsible

Raddington Inc. makes and sells chairs. The controller is responsible for preparing the master budget and has accumulated the following information for 2020: Prepare production and direct labour budge...

Q: Waterways puts much emphasis on cash flow when it plans for capital

Waterways puts much emphasis on cash flow when it plans for capital investments. The company chose its discount rate of 8% based on the rate of return it must pay its owners and creditors. Using that...

Q: Timo Corporation, which operates an amusement park, is considering a

Timo Corporation, which operates an amusement park, is considering a capital investment in a new ride. The ride would cost $136,000 and have an estimated useful life of five years. The park will sell...

Q: The controller of Kari Company estimates sales and production for the first

The controller of Kari Company estimates sales and production for the first four months of 2020 as follows: Prepare a cash budget for a month. January … February … March … April Sales $40,000 … $50,0...

Q: Yaeger Company uses budgets in controlling costs. The company based the

Yaeger Company uses budgets in controlling costs. The company based the monthly budget amounts in the report on an expected production of 60,000 units per month or 720,000 units per year. The assembli...

Q: Henning Manufacturing Ltd. operates its patio furniture division as a profit

Henning Manufacturing Ltd. operates its patio furniture division as a profit centre. Operating data for this division for the year ended December 31, 2020, are as follows: Prepare a responsibility rep...

Q: Alosio Manufacturing Company manufactures a variety of tools and industrial equipment.

Alosio Manufacturing Company manufactures a variety of tools and industrial equipment. The company operates three divisions. Each division is an investment centre. Operating data for the home division...

Q: South division had the following results for the year just ended:

South division had the following results for the year just ended: Compare ROI and residual income with supporting calculations. South is considering a new product line that would involve the followi...

Q: Northern Pride Inc., a diversified company, operates four departments.

Northern Pride Inc., a diversified company, operates four departments. The company has collected the following departmental information for 2020: Calculate ROI and residual income and rank department...

Q: Kappa Company has three divisions: A, B, and C

Kappa Company has three divisions: A, B, and C. Each year the vice-president incharge of the best-performing division is entitled to a sizeable bonus. The results for the year are now in and each vice...

Q: Return on investment is often expressed as follows: Compare and

Return on investment is often expressed as follows: Compare and contrast performances under ROI and residual income. Instructions a. Explain the advantages of breaking down the ROI calculation into t...

Q: Health Care Inc. (HCI) uses a flexible budgeting system

Health Care Inc. (HCI) uses a flexible budgeting system, rather than only the current master budget. The following data are available for HCI's expected costs at production levels of 100,000, 110,000,...

Q: Steelwall Inc. uses the return on investment as a performance measure

Steelwall Inc. uses the return on investment as a performance measure and defines investment as the average operating assets. The company bases management bonuses in part on the ROI and expects all in...

Q: Michener Bottling Corporation is considering the purchase of a new bottling machine

Michener Bottling Corporation is considering the purchase of a new bottling machine. The machine would cost $200,000 and has an estimated useful life of eight years with zero salvage value. Management...

Q: Nigh Company prepares monthly cash budgets. Relevant data from operating budgets

Nigh Company prepares monthly cash budgets. Relevant data from operating budgets for 2021 are as follows: Prepare cash budget for two months. All sales are on account. The company expects collection...

Q: Raymond Co. began operations in January 2019. The information below

Raymond Co. began operations in January 2019. The information below is for Raymond Co.'s operations for the three months from January to March (the first quarter) of 2020: Prepare a cash budget. Expe...

Q: The budget committee of Urbina Company has collected the following data for

The budget committee of Urbina Company has collected the following data for its Eastwood Store in preparing budgeted income statements for July and August 2020. Prepare purchases and income statement...

Q: Greish Inc. is preparing its annual budgets for the year ending

Greish Inc. is preparing its annual budgets for the year ending December 31, 2020. Accounting assistants have provided the following data: Prepare sales, production, direct materials, direct labour, a...

Q: Choo-Foo Company makes and sells artistic frames for pictures.

Choo-Foo Company makes and sells artistic frames for pictures. The controller is responsible for preparing the master budget and has accumulated the following information for 2020: Prepare production...

Q: Alcore Company estimates that 240,000 direct labour hours will be

Alcore Company estimates that 240,000 direct labour hours will be worked in the assembly department during 2020. Based on that, the following budgeted manufacturing overhead data are calculated: Prepa...

Q: Kitchen Care Inc. (KCI) is a manufacturer of toaster

Kitchen Care Inc. (KCI) is a manufacturer of toaster ovens. To improve control over operations, the president of KCI wants to begin using a flexible budgeting system, rather than use only the current...

Q: High Arctic Manufacturing Company produces one product, Kebo. Because of

High Arctic Manufacturing Company produces one product, Kebo. Because of wide fluctuations in the demand for Kebo, the assembly department has significant variations in its monthly production levels....

Q: Doggone Groomers is in the dog-grooming business. Its operating

Doggone Groomers is in the dog-grooming business. Its operating costs are described by these formulas: Prepare a flexible budget report; compare flexible and static budgets. Grooming supplies (variab...

Q: You have been given the following information about the production of Gamma

You have been given the following information about the production of Gamma Co., and are asked to provide the plant manager with information for a meeting with the vice-president of operations: Determ...

Q: Jonczyk Company is considering two different, mutually exclusive capital expenditure proposals

Jonczyk Company is considering two different, mutually exclusive capital expenditure proposals. Project A will cost $395,000, has an expected useful life of 10 years and a salvage value of zero, and i...

Q: Inman Corporation manufactures a single product. The standard cost per unit

Inman Corporation manufactures a single product. The standard cost per unit of product is as follows: Calculate variances. Direct materials—2 kg of plastic at $5 per kilogram ………………… $10.00 Direct la...

Q: Soriano Manufacturing Company uses a standard cost accounting system to account for

Soriano Manufacturing Company uses a standard cost accounting system to account for the manufacturing of exhaust fans. In July 2020, it accumulates the following data for 1,500 units started and finis...

Q: Under a contract with the provincial government, ChemLabs Ltd. analyzes

Under a contract with the provincial government, ChemLabs Ltd. analyzes the chemical and bacterial composition of well water in various municipalities in the interior of British Columbia. The contract...

Q: Kohler Clothiers manufactures women’s business suits. The company uses a

Kohler Clothiers manufactures women’s business suits. The company uses a standard cost accounting system. In March 2020, 15,700 suits were made. The following standard and actual cos...

Q: You have been given the following information about ALG Co. Ltd

You have been given the following information about ALG Co. Ltd., which uses a standard cost system in accounting for its one product: Calculate various amounts from standard costs and variances. 1. I...

Q: Crede Manufacturing Company uses a standard cost accounting system. In 2020

Crede Manufacturing Company uses a standard cost accounting system. In 2020, 28,000 units were produced. Each unit took several kilograms of direct materials and 1.6 standard hours of direct labour at...

Q: Hi-Tek Labs performs steroid testing services for colleges and universities

Hi-Tek Labs performs steroid testing services for colleges and universities. Because the company works only with educational institutions, the price of each test is strictly regulated. Therefore, the...

Q: Pointe Claire Company applies overhead based on direct labour hours. Two

Pointe Claire Company applies overhead based on direct labour hours. Two direct labour hours are required for each unit of product. Planned production for the period was set at 9,000 units. Manufactur...

Q: Fayman Manufacturing Company uses standard costs with its job-order cost

Fayman Manufacturing Company uses standard costs with its job-order cost accounting system. In January, an order (Job 84) was received for 5,500 units of product D. The standard cost of one unit of pr...

Q: Toronto Manufacturing Company uses a standard cost system. John Robert,

Toronto Manufacturing Company uses a standard cost system. John Robert, a financial analyst for Toronto Manufacturing Company, has been given information with respect to standard cost variances for on...

Q: Martelle Company is performing a post-audit of a project completed

Martelle Company is performing a post-audit of a project completed one year ago. The initial estimates were that the project would cost $250,000, would have a useful life of nine years and zero salvag...

Q: Montreal Inc. manufactures garden hoses for large stores. The

Montreal Inc. manufactures garden hoses for large stores. The standard costs for a dozen garden hoses are as follows: Calculate variances. Direct materials ……&...

Q: The controller of Harrington Company estimates sales and production for the first

The controller of Harrington Company estimates sales and production for the first four months of 2020 as follows: Prepare a cash budget for a quarter. Sales are 40% cash and 60% on account, and 60%...

Q: The budget committee of Ridder Company collects the following data for its

The budget committee of Ridder Company collects the following data for its Westwood Store in preparing budgeted income statements for July and August 2020: Prepare purchases and income statement budge...

Q: Kirkland Ltd. estimates sales for the second quarter of 2020 will

Kirkland Ltd. estimates sales for the second quarter of 2020 will be as follows: Prepare a raw materials purchase budget in dollars. April …………… 2,550 units May ……………. 2,475 units June ………….. 2,390 u...

Q: Kurian Industries' balance sheet at December 31, 2019, follows.

Kurian Industries' balance sheet at December 31, 2019, follows. Prepare budgeted income statement and balance sheet. / / Budgeted data for the year 2020 include the following: To meet sales requir...

Q: The Big Sister Company is in a seasonal business and prepares quarterly

The Big Sister Company is in a seasonal business and prepares quarterly budgets. Its fiscal year runs from January 1 through December 31. Production occurs only in the first quarter (January to March)...

Q: Rotech Co. began operations in January 2019. The information below

Rotech Co. began operations in January 2019. The information below is for Rotech Co.'s operations for the three months from January to March (the first quarter) of 2020: Prepare a cash budget. Expens...

Q: Laesecke Company uses budgets to control costs. The May 2020 budget

Laesecke Company uses budgets to control costs. The May 2020 budget report for the company's packaging department is as follows: State the total budgeted cost formula, and prepare flexible budget repo...

Q: Korene Manufacturing Inc. operates the home appliance division as a profit

Korene Manufacturing Inc. operates the home appliance division as a profit centre. Operating data for this division for the year ended December 31, 2020, are shown in the following table: Prepare a re...

Q: Chudzik Manufacturing Company makes garden and lawn equipment. The company operates

Chudzik Manufacturing Company makes garden and lawn equipment. The company operates through three divisions. Each division is an investment centre. Operating data for the lawn mower division for the y...

Q: Frost Company is evaluating the purchase of a rebuilt spotwelding machine to

Frost Company is evaluating the purchase of a rebuilt spotwelding machine to be used in the manufacture of a new product. The machine will cost $176,000, has an estimated useful life of seven years an...

Q: Iqaluit Corporation recently announced a bonus plan to be awarded to the

Iqaluit Corporation recently announced a bonus plan to be awarded to the vice-president of the most profitable division. The three managers are to choose whether the ROI or residual income (RI) will b...

Q: Kanjak Company uses a responsibility reporting system. It has divisions in

Kanjak Company uses a responsibility reporting system. It has divisions in Calgary, Winnipeg, and Sudbury. Each division has three production departments: cutting, shaping, and finishing. Responsibili...

Q: Haniwall Industries has manufactured prefabricated houses for over 20 years.

Haniwall Industries has manufactured prefabricated houses for over 20 years. Calculate ROI and residual income and discuss impact on manager performance. The houses are constructed in sections that ar...

Q: Lawton Homes, founded by a former vice-president of Haniwall

Lawton Homes, founded by a former vice-president of Haniwall Industries in P11.45A, has been manufacturing prefabricated houses for the past five years. To compete with Haniwall, Lawton also expanded...

Q: National Motors is a major car manufacturer with a wide variety of

National Motors is a major car manufacturer with a wide variety of models, including its most recent one, the Mountaineer. The new model uses parts and components from external suppliers, as well as s...

Q: Colt Division had the following results for the year just ended:

Colt Division had the following results for the year just ended: Compare ROI and residual income with supporting calculations. Colt is considering a new product line that would involve the following...