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Managerial Accounting

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Product Pricing: Single Product
Presented is the 2009 contribution income statement of Colgate Products.

COLGATE PRODUCTS
Contribution Income Statement
For Year Ended December 31, 2009
Sales (18,000 units) $2,160,000
Less variable costs
Cost of goods sold $720,000
Selling and administrative 198,000 (918,000)
Contribution margin 1,242,000
Less fixed costs
Manufacturing overhead 750,000
Selling and administrative 320,000 (1,070,000)
Net income $172,000

 

During the coming year, Colgate expects an increase in variable manufacturing costs of $8 per unit and in fixed manufacturing costs of $108,000.

(a) If sales for 2010 remain at 18,000 units, what price should Colgate charge to obtain the same profit as last year?

(b) Management believes that sales can be increased to 24,000 units if the selling price is lowered to $109. What would be the excepted profit (or loss) as a result of this action? Use a negative sign with your answer, if appropriate.

(c) After considering the expected increases in costs, what sales volume is needed to earn a profit of $172,000 with a unit selling price of $109?

 

Cost-Based Pricing
and Markups with Variable Costs
Compu Services provides computerized inventory consulting. The office and computer expenses are $400,000 annually and are not assigned to specific jobs. The consulting hours available for the year total 20,000, and the average consulting hour has $20 of variable costs.

(a) If the company desires a profit of $140,000, what should it charge per hour?

(b) What is the markup on variable costs if the desired profit is $160,000?

(c) If the desired profit is $160,000, what is the markup on variable costs to cover (1) unassigned costs and (2) desired profit?

 

he predicted 2009 costs for Osaka Motors are as follows:

Manufacturing Costs Selling and Administrative Costs
Variable $100,000 Variable $300,000
Fixed 220,000 Fixed 200,000

 

Average total assets for 2009 are predicted to be $6,000,000.

(a) If management desires a 13 percent rate of return on total assets, what are the markup percentages for total variable costs and for total manufacturing costs? (Round your answers to the nearest whole percent.)

(b) If the company desires a 7 percent rate of return on total assets, what is the markup percentage on total manufacturing costs for (1) unassigned costs and (2) desired profit? (Round your answers to the nearest whole percent.)

 

 

Product Pricing: Two Products
Quality Data manufactures two products, CDs and DVDs, both on the same assembly lines and packaged 10 disks per pack. The predicted sales are 400,000 packs of CDs and 500,000 packs of DVDs. The predicted costs for the year 2009 are as follows:

Variable Costs Fixed Costs
Materials $100,000 $600,000
Other 250,000 900,000

 

Each product uses 50 percent of the materials costs. Based on manufacturing time, 40 percent of the other costs are assigned to the CDs, and 60 percent of the other costs are assigned to the DVDs. The management of Quality Data desires an annual profit of $50,000.

(a) What price should Quality Data charge for each disk pack if management believes the DVDs sell for 20 percent more than the CDs? Round answers to the nearest cent.

 

(b) What is the total profit per product using the selling prices determined in part (a)? Use negative signs with answers, if appropriate.

 

Target Costing
Oregon Equipment Company wants to develop a new log-splitting machine for rural homeowners. Market research has determined that the company could sell 5,000 log-splitting machines per year at a retail price of $600 each. An independent catalog company would handle sales for an annual fee of $2,000 plus $60 per unit sold. The cost of the raw materials required to produce the log-splitting machines amounts to $110 per unit.

If company management desires a return equal to 10 percent of the final selling price, what is the target unit cost? Round answer to the nearest cent.

Managerial Accounting

Managerial Accounting

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QUESTION 1                 Managerial accounting must conform to which of the following standards?                     Generally Accepted Accounting Principles (GAAP)                       International Financial Reporting Standards (IFRS)                       Internal Revenue Service tax code                        None of the above                 2.5 points           QUESTION 2                 Which of the following mathematical expressions best describes a mixed cost?                     Y = bX                          Y = a                          Y = a + bX                          Y = ai                 2.5 points           QUESTION 3                 The introduction of production technology to replace labor in a manufacturing process would likely result in which of the following?                  An increase in fixed cost                         An increase in general and administrative expenses.                       An increase in direct labor hours.                        A decrease in contribution margin.               2.5 points           QUESTION 4                 An increase in volume within the relevant range will cause:                      Unit fixed costs to increase.                        Unit variable costs to decrease.                        Total fixed costs to stay the same.                          Total variable costs to decrease.               2.5 points           QUESTION 5                 Which of the following is one of the three major components of product costs?                     Research and development expenses                        Manufacturing overhead                          Marketing costs related to specific products                       Selling, general and administrative expenses              2.5 points           QUESTION 6                 Which of the following would be classified as a fixed selling and administrative cost?                    Sales Commissions                         Depreciation on office equipment                          Depreciation on factory equipment                        Wages of production supervisor                        2.5 points           QUESTION 7                 In the following equation for total cost, Y = a + bX, “a” represents which of the following?                    Total Cost                          Fixed Cost                          Variable Cost                         Volume                 2.5 points           QUESTION 8                 Managerial accounting is primarily focused on:                       Providing information for internal and external users                       Providing general purpose financial statements                       Providing special-purpose information and reports                       Following generally accepted accounting principles              2.5 points           QUESTION 9                 Examples of activity cost drivers include all of the following except:                     Inspecting incoming raw materials                        Machine time spent working on a product                       Deciding how to arrange raw materials inventory within the warehouse                      Receiving (loading) raw materials into the warehouse              2.5 points           QUESTION 10                The following information pertains to Marvolo, Inc.:                                Selling price per unit       $100        Variable costs per unit       $75        Total fixed costs       $425,000        Tax rate        40%                          The sales volume required to obtain a target after-tax profit of $108,000 is:            6,000 units                          8,572 units                          24,200 units                          20,000 units                 2.5 points           QUESTION 11                The scatter diagram method of cost estimation:                       Uses only the high and low data points                        Is superior to other methods in its ability to distinguish between discretionary and committed fixed costs                   Requires the use of judgment                        Provides a measure of the goodness of fit              2.5 points           QUESTION 12                What is the purpose for using predetermined overhead rates?                      Delays in product costing can be avoided                       Variation in cost assignment due to seasonality can be prevented                      Variation in cost assignment due to short-term variations in volume can be prevented                    Use of predetermined overhead rates serves all the above purposes            2.5 points           QUESTION 13                Which of the following aspects of manufacturing must be understood in order to implement activity based costing in a production setting?                  The production process                         The activities that occur in the production process must be known                      The cost drivers that generate activities within the production process                     All of the above                 2.5 points           QUESTION 14                Determine the unit break-even point, assuming fixed costs are $60,000 per period, variable costs are $16.00 per unit, and the sales price is $25.00 per unit.                  5,000                          6,667                          15,000                          12,000                 2.5 points           QUESTION 15                Total contribution margin is calculated by subtracting:                      Cost of goods sold from total revenues                        Fixed costs from total revenues                        Total manufacturing costs from total revenues                       Total variable costs from total revenues               2.5 points           QUESTION 16                Wesley’s income statement is as follows:              Sales (10,000 units)       $150,000        Less variable costs       -48,000        Contribution margin       $102,000        Less fixed costs       -24,000        Net income        $78,000                          If sales increase by 1,000 units, profits will:              Increase by $12,000                         Increase by $10,200                         Increase by $4,800                         Increase by $8,000                2.5 points           QUESTION 17                The introduction of production technology to replace labor in a manufacturing process would likely result in which of the following?                  A shift in costs from variable costs to fixed costs.                       A shift in costs from fixed costs to variable costs.                       An increase in total manufacturing costs.                       An increase in employment               2.5 points           QUESTION 18                Financial accounting is primarily focused on:                       Providing the Internal Revenue Service with information to determine the amount of taxes owed                   Providing investors with useful information for valuing securities                      Providing information for internal users                        None of the above                2.5 points           QUESTION 19                When finished goods are sold, there is an increase in which of the following accounts?                    Cost of Goods Sold                         Cost of Goods Manufactured                        Finished Goods Inventory                         Work-in-Process                2.5 points           QUESTION 20                As volume increases, which of the following statements is not correct?                     Variable cost per unit will remain the same.                       Total fixed will remain the same.                        Average cost per unit will increase.                        Total variable costs will increase.               2.5 points           QUESTION 21                Peoria Corporation reported the following on their contribution format income statement:                             Sales (12,000 units)       $350,000        Less: variable expenses       200,000        Contribution margin       $150,000        Less: fixed expenses       125,000        Net operating income       $25,000                          What is the contribution margin ratio?               38.57%                          42.86%                          57.14%                          4.30%                 2.5 points           QUESTION 22                Chattanooga, Inc. has two categories of overhead: maintenance and inspection. Costs expected for these categories for the coming year are as follows:         Maintenance$800,000       Inspection 400,000                The following data have been assembled for use in developing a bid for a proposed job:           Direct materials       $6,000        Direct labor        $16,000        Machine-hours       400        Number of inspections       4        Direct labor-hours       800                          The total estimate for machine-hours for all jobs during the year is 25,000, and for inspections is 800. These are the cost drivers for maintenance and inspection costs, respectivelyUsing the appropriate cost drivers, the total cost of the potential job is:            $22,000                          $62,800                          $33,600                          $36,800                 2.5 points           QUESTION 23                The following information pertains to Oliwander’s 2014 operations:                              Selling price per unit       $50        Variable costs per unit       $20        Total fixed costs       $110,000                          Oliwander’s break-even point in units is:              2,000 units                          3,333 units                          3,667 units                          60,000 units                 2.5 points           QUESTION 24                The Chateau Company manufactures 4,000 telephones per year. The full manufacturing costs per telephone are as follows:                           Direct materials       $4        Direct labor        16        Variable manufacturing overhead      12        Average fixed manufacturing overhead      12        Total        $44                          The Quick Assembly Company has offered to sell Chateau 4,000 telephones for $31 per unit. If Chateau accepts the offer, $20,000 of fixed overhead will be eliminated.                   Chateau should:                Make the telephones; the savings is $4,000                       Buy the telephones; the savings is $35,000                       Buy the telephones; the savings is $24,000                       Make the telephones; the savings is $24,000              2.5 points           QUESTION 25                Direct labor used in manufacturing digital cameras would best be classified as what type of cost?                   Variable cost                          Fixed cost                          Mixed cost                          Step cost                 2.5 points           QUESTION 26                If a trucking company were operating at capacity, but had an opportunity to fill a one-time high volume special order, which of the following ramifications could occur?                  Lost revenues from regular customers                        Long-term revenue loss from customers who change service to competitors                     Questions from regular customers about commitment to service                      eAll of the above                2.5 points           QUESTION 27                From a managerial accounting standpoint, which of the following areas of the Sarbanes-Oxley Act of 2002 (SOX) are most pertinent?                  External auditing standards                        Review of internal controls                         Codes of ethics for financial officers                        Penalties for fraud                2.5 points           QUESTION 28                Future costs that differ among competing alternatives are:                      Absorption costs                         Relevant costs                         Replacement costs                         Variable overhead costs                2.5 points           QUESTION 29                According to Michael Porter, which of the following is an example of cost leadership as a business strategy?                  A regional beer brewer that caters to local tastes.                       A glass manufacturer utilizing research and development to identify new applications for glass and ceramics.                  An online bookseller utilizing efficient scale facilities and overhead cost control p.9.                       A manufacturer focused on designing and building corporate jet aircraft.            2.5 points           QUESTION 30                Activity-based costing’s primary benefit is that it provides:                      Absolutely accurate product costing information                       Data for external financial reporting purposes                       More precise cost data for internal decision-making purposes                      All of the above                2.5 points           QUESTION 31                The most appropriate cost driver for the activity of cleaning (bussing) tables in a restaurant is:                    The number of cooks in the kitchen                        The number of tables cleaned                        The number of employees assigned to the job of cleaning tables                      The amount of money deposited to the bank each day             2.5 points           QUESTION 32                Cari German uses gas to heat her home. She has accumulated the following information regarding her monthly gas bill and monthly heating degree-days. The heating degree-days value for a month is found by first subtracting the average temperature for each day from 65 degrees and then summing these daily amounts together for the month.         Month        Heating Degree-Days       Gas Bill        February        1,900        $254        April        600        $101                          What will be the increase in Cari’s monthly gas bill per heating degree-day using the high-low method?          $0.33                          $0.12                          $46.00                          $153.00                 2.5 points           QUESTION 33                All of the following are assumptions used in cost-volume-profit analysis, except:                     All costs are classified as fixed or variable                       The total cost function is linear                        The total revenue function is linear                        All of the above are assumptions used in cost-volume-profit analysis            2.5 points           QUESTION 34                Gross margin is calculated by subtracting:                       Total variable costs from total revenues                        Total manufacturing overhead costs from total revenues                      Fixed costs from total revenues                        Cost of goods sold from total revenues               2.5 points           QUESTION 35                The total contribution margin at the break-even point:                      Equals total fixed costs                         Is zero                          Is greater than total variable costs                        Plus total fixed costs equal total revenues                                                           2.5 points           QUESTION 36                Partially completed goods that are in the process of being converted into a finish product are defined as:                   Work-in-process inventories                         Conversion inventories                         Raw materials inventories                         Operational inventories                2.5 points           QUESTION 37                Which of the following is not included in work-in-process inventory?                     Direct materials costs                         Applied manufacturing overhead                        Direct manufacturing labor costs                        Sales commissions                2.5 points           QUESTION 38                Which of the following procedures best describes activity-based costing?                     All overhead costs are recorded as expenses as incurred.                      Overhead costs are assigned directly to products.                       Overhead costs are assigned to activities; then costs are assigned to products.                     Overhead costs are assigned to departments; then costs are assigned to products.           2.5 points           QUESTION 39                The contribution margin ratio is:                        The difference between price and variable cost per unit                      The percentage difference between sales and cost of goods sold                      The portion (or percent) of revenues available for covering fixed costs and providing a profit                    The percentage difference between total revenues and total costs             2.5 points           QUESTION 40                Although adding more activity cost pools to an activity-based costing system may improve the precision of product costing, this increase in precision must be judged against:                  The cost of the product                         The price of the product                         The cost of developing and maintaining the additional cost pools                      All of the above       

Managerial Accounting

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1.

value:
20.00 points

You received credit for this question in a previous attempt

Rosario Company, which is located in Buenos Aires, Argentina, manufactures a component used in farm machinery. The firm’s fixed costs are 3,500,000 p per year. The variable cost of each component is 1,400 p, and the components are sold for 3,300 p each. The company sold 5,000 components during the prior year. (p denotes the peso, Argentina’s national currency. Several countries use the peso as their monetary unit. On the day this exercise was written, Argentina’s peso was worth .327 U.S. dollar. In the following independent requirements, ignore income taxes.)

 

Required:

 

1. Compute the break-even point in units. (Round your answer to the nearest whole number.)

 

  Break-even point components

 

2. What will the new break-even point be if fixed costs increase by 15 percent? (Round your answer to the nearest whole number.)

 

  New break-even point components

 

3. What was the company’s net income for the prior year? (Omit the “p” sign in your response.)

 

  Net income p

 

4. The sales manager believes that a reduction in the sales price to 2,800 p will result in orders for 1,800 more components each year. What will the break-even point be if the price is changed? (Round your answer to the nearest whole number.)

 

  New break-even point components

referencesprevious attempt

 

 

 

 

2.value:
20.00 points

You did not receive credit for this question in a previous attempt

The Houston Armadillos, a minor-league baseball team, play their weekly games in a small stadium just outside Houston. The stadium holds 20,800 people and tickets sell for $14 each. The franchise owner estimates that the team’s annual fixed expenses are $228,800, and the variable expense per ticket sold is $3. (In the following requirements, ignore income taxes.)

 

Required:

 

2. If the stadium is half full for each game, how many games must the team play to break even?

 

  Team must play games

 

3.value:
20.00 points

You did not receive credit for this question in a previous attempt

The Houston Armadillos, a minor-league baseball team, play their weekly games in a small stadium just outside Houston. The stadium holds 12,000 people and tickets sell for $14 each. The franchise owner estimates that the team’s annual fixed expenses are $200,000, and the variable expense per ticket sold is $4. (In the following requirements, ignore income taxes.)

 

Required:

 

2. What is the safety margin for the baseball franchise if the team plays a 14-game season and the team owner expects the stadium to be 50 percent full for each game? (Round your answer to the nearest dollar amount. Omit the “$” sign in your response.)

 

  Safety margin $

 

3. If the stadium is half full for each game, what ticket price would the team have to charge in order to break even? (Round your answer to the nearest dollar amount. Omit the “$” sign in your response.)

 

  Price $ per ticket

 

 

 

 

4.value:
20.00 points

You received credit for this question in a previous attempt

Fill in the missing data for each of the following independent cases. (Ignore income taxes.) (Leave no cells blank – be certain to enter “0” wherever required. Do not round your intermediate calculations. Omit the “$” sign in your response.)

 

  Sales
Revenue
Variable
Expenses
Total Contribution
Margin
Fixed
Expenses
Net
Income
Break-Even
Sales Revenue
  1. $   $ 40,000   $   $ 30,000   $   $ 40,000  
  2.   80,000         15,000             80,000  
  3.       40,000     80,000         50,000      
  4.   110,000     22,000             38,000      

 

5.value:
20.00 points

You did not receive credit for this question in a previous attempt

College Pizza delivers pizzas to the dormitories and apartments near a major state university. The company’s annual fixed expenses are $40,000. The sales price of a pizza is $10, and it costs the company $5 to make and deliver each pizza. (In the following requirements, ignore income taxes.)

 

Required:

 

1. Using the contribution-margin approach, compute the company’s break-even point in units (pizzas).

 

  Break-even point pizzas

 

2. What is the contribution-margin ratio? (Round your answer to 1 decimal place.)

 

  Contribution-margin ratio  

 

3. Compute the break-even sales revenue. Use the contribution-margin ratio in your calculation. (Omit the “$” sign in your response.)

 

  Break-even point $

 

4. How many pizzas must the company sell to earn a target net profit of $65,000? Use the equation method.

 

  Number of pizzas  

 

 

Managerial Accounting

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Please Solve the Problem Below:

Chicago Furniture Company produces combination desk and chair sets for the elementary schools in the Midwest. As the second quarter is progressing it is important for the controller to complete a budget for the third quarter. The sales department manager has provided the following forecast.

July                    8,000        desk combos

August             8,700       desk combos

September    7,600       desk combos

October          8,700       desk combos

November    8,800       desk combos

  • In order to ensure Just-in-Time (JIT) deliveries are maintained in accordance with the needs of the schools Chicago Furniture Company has a standing policy that the inventory at the end of each month must be equal to 40% of the following month’s forecasted sales. On July 1st there will be 3,200 desk combos in inventory.
  • The building of each desk combo requires 12 board feet of pine planks which cost $0.70 per foot. In order to maintain proper inventory for building the desk combos the department must have 30% of the next month’s production requirements.

Using Microsoft Excel, create a spreadsheet for the production and material purchases budget for the 3rd Quarter.

Managerial Accounting

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Problem 8-35
Variable-Costing and Absorption-Costing Income

Tenley Company produces and sells wooden pallets that are used for moving and stacking materials. The operating costs for the past year were as follows:

During the year, Tenley produced 300,000 wooden pallets and sold 306,500 at $9 each. Tenley had 11,300 pallets in beginning finished goods inventory; costs have not changed from last year to this year. An actual costing system is used for product costing.

 

1. What is the per-unit inventory cost that will be reported on Tenley’s balance sheet at the end of the year? How many units are in ending inventory? What is the total cost of ending inventory? Round the per unit amount to the nearest cent.

 

Per-unit inventory cost

 

Why?

 

4. Calculate variable-costing operating income.
$  [removed]

 

5. Suppose that Tenley Company had sold 296,700 pallets during the year. What would absorption-costing operating income have been? Variable-costing income?

 

Absorption costing income $  [removed]
Variable costing income

Problem 5-46
Overhead Application and Job-Order Costing

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:

Heurion worked on five jobs in July. Data are as follows:

By July 31, Jobs 741 and 743 were completed and sold. The remaining jobs were in process.

1.  Calculate the plantwide overhead rate for Heurion Company. Round your answer to the nearest cent.
$  [removed] per DLH

2.  Prepare job-order cost sheets for each job showing all costs through July 31. Round your answers to the nearest dollar, if rounding is required. If an amount box does not require an entry, leave it blank or enter zero (“0”).

 Heurion Company
 Job-Order Cost Sheets
 Job 741
 Job 742
 Job 743
 Job 744
 Job 745
 Balance, July 1
$ [removed]
$ [removed]
$ [removed]
$ [removed]
$ [removed]
 Direct materials
 [removed]
 [removed]
 [removed]
 [removed]
 [removed]
 Direct labor
 [removed]
 [removed]
 [removed]
 [removed]
 [removed]
 Applied overhead
 [removed]
 [removed]
 [removed]
 [removed]
 [removed]
 Total cost
$ [removed]
$ [removed]
$ [removed]
$ [removed]
$ [removed]

 

3.  Calculate the balance in Work in Process on July 31.
$  [removed]

4.  Calculate Cost of Goods Sold for July.
$  [removed]

Problem 6-46
Basic Flows, Equivalent Units

Bowman Company produces an arthritis medication that passes through two departments: Mixing and Tableting. Bowman uses the weighted average method. Data for February for Mixing is as follows: BWIP was zero; EWIP had 7,200 units, 50 percent complete; and 84,000 units were started. Tableting’s data for February is as follows: BWIP was 4,800 units, 20 percent complete; and 2,400 units were in EWIP, 40 percent complete.

1.  For Mixing, calculate the (a) number of units transferred to Tableting, and (b) equivalent units of production.

a.  Units transferred to tableting [removed]  units
b.  Equivalent units of production [removed]  units

2.  For Tableting, calculate the number of units transferred out to Finished Goods.
[removed]  units

3.  Suppose that the units in the mixing department are measured in ounces, while the units in Tableting are measured in bottles of 100 tablets, with a total weight of eight ounces (excluding the bottle).

Decide how you would treat units that are measured differently.

The input in the box below will not be graded, but may be reviewed and considered by your instructor.

 

Now, repeat Requirement 2 using this approach.

Units transferred out [removed]  units

 

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Question:

Prepare income statements in both job order costing and activity-based costing formats for a hypothetical case. Your example should include at least three activities and at least two products. If you do both correctly the operating income in both statements should be identical. Explain the initial assumptions and the calculations in detail. Provide in-text citations.

Note:

1. Please do the calculations on excel, and then copy to the word document for the submission with the written explanations.

2. Please find the example and the sample answer of the activity in attachment. You could use the “Second Example for Activity 2” for answering the activity.

3. Need to explain the initial assumptions and the calculations in detail.

4. Example should include at least three activities and at least two products.

5. Need at least 3 peer-reviewed article as the reference, and needs to provide in-text citations.

6. Please find the grading rubric attached and go over it before doing the activity.

7. Please find the related PPTs and textbook attached.

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The following information concerns production in the Forging Department for September. All direct materials are placed into the process at the beginning of production, and conversion costs are incurred evenly throughout the process. The beginning inventory consists of $110,970 of direct materials.

ACCOUNT Work in Process—Forging Department ACCOUNT NO.
Date Item Debit Credit Balance
Debit Credit
Sept. 1 Bal., 8,100 units, 30% completed     119,232    
  30 Direct materials, 74,000 units 999,000     1,118,232    
  30 Direct labor 115,200     1,233,432    
  30 Factory overhead 159,095   ?   1,392,527    
  30 Goods finished, ? units     ?    
  30 Bal., 6,500 units, 80% completed     ?    

 

Based on the above data, determine each of the following amounts.

If required, round your interim calculations to two decimal places. Round final answers (a-c) to the nearest dollar.

  1.  Cost of beginning work in process inventory completed in September.
    $

 

  1.  Cost of units transferred to the next department during September.
    $

 

  1.  Cost of ending work in process inventory on September 30.
    $

 

  1.  Costs per equivalent unit of direct materials and conversion included in the September 1 beginning work in process. If required, round your answers to two decimal places.
Direct materials cost per equivalent unit $
Conversion cost per equivalent unit $

 

  1.  The September increase or decrease in costs per equivalent unit for direct materials and conversion from the previous month. If required, round your answers to two decimal places.
  Increase or Decrease Amount
Change in direct materials cost per equivalent unit   $
Change in conversion cost per equivalent unit   $

 

 

 

 

 

 

Problem 2

 

Four Finger Appliance Company manufactures small kitchen appliances. The product line consists of blenders and toaster ovens. Four Finger Appliance presently uses the multiple production department factory overhead rate method. The factory overhead is as follows:

 

1 Assembly Department $158,760.00
2 Test and Pack Department 113,925.00
3 Total $272,685.00

The direct labor information for the production of 8,160 units of each product is as follows:

Department
Assembly Test and Pack
Blender 675 dlh 2,440 dlh
Toaster oven 2,265 815
Total 2,940 dlh 3,255 dlh

Four Finger Appliance used direct labor hours (dlh) to allocate production department factory overhead to products.

 

Complete the Multiple-Department Overhead Table for blenders.

A. Determine the two production department factory overhead rates.*
B. Determine the total factory overhead and the factory overhead per unit allocated to each product.*

* If required, round all per-unit answers to the nearest cent.
Blenders
Activity Allocation-
Base Activity Activity
Usage X Rate = Cost
Assembly Department  dlh  /dlh
Test and Pack Department  dlh /dlh
Total
÷ Units ÷
Factory overhead cost per unit

 

 


Complete the Multiple-Department Overhead Table for toaster ovens.

A. Determine the two production department factory overhead rates.*
B. Determine the total factory overhead and the factory overhead per unit allocated to each product.*

* If required, round all per-unit answers to the nearest cent.
Toaster Ovens
Activity Allocation-
Base Activity Activity
Usage X Rate = Cost
Assembly Department  dlh /dlh
Test and Pack Department  dlh /dlh
Total
÷ Units ÷
Factory overhead cost per unit

 

Managerial Accounting

Managerial Accounting

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 In a detailed presentation (12 to 15 slides in length, plus speaker notes and an addendum), explain and defend your costing strategies (i.e., the business plan created in your first and second milestones) and share your business’s performance to-date (i.e., the work from your third milestone). Be sure to effectively communicate to your stakeholders by breaking down concepts and using investor-friendly language to build their trust and confidence. Specifically, the following critical elements must be addressed. Most of the critical elements align with a particular course outcome (shown in brackets). I. Introduce your presentation A. Outline your company’s profile, including its name, location, and mission and vision. B. Explain for your investors the purpose of the presentation. What do you plan to communicate, and why should your investors pay attention? In other words, try to persuade your investors that the accounting information you are about to share is important. [ACC-202-03] C. Explain and defend your methods for generating the information that you are about to share in terms of your adherence to industry standards and the AICPA code of ethics. In other words, why should your investors trust that you are delivering accurate financial data and that your decision-making process has been ethical? [ACC-202-03] 2 D. Specifically, be sure to illustrate how your managerial accounting methods support the mission of your organization, using examples. [ACC-202- 03] II. Financial Strategy: Review your original business plan and costing strategies using the prior-to-opening scenario information. A. Justify your use of job order costing. Be sure to compare and contrast the various costing systems you learned about in this course as part of your defense. [ACC-202-01] B. Explain and defend the selling prices that you established for grooming, day care, and boarding. Be sure to reference your cost-volume-profit analysis in your defense. [ACC-202-02] C. Explain and defend your selected target profits for each area of your business. Be sure to reference your cost-volume-profit analysis in your defense. [ACC-202-02] D. Explain and defend your contribution margin per unit and contribution margin ratio. Be sure to reference your cost-volume-profit analysis in your defense. [ACC-202-02] III. Financial Statements: Assess your financial performance to-date using the post-opening scenario information. A. Financial Statements 1. Share the statement of cost of goods manufactured and logically interpret the business’s performance against the provided benchmarks. [ACC-202-02] 2. Share the income statement and logically interpret the business’s performance against the provided benchmarks. [ACC-202-02] B. Variance Analysis 1. Identify all variances for the direct labor time and the materials price. [ACC-202-02] 2. Evaluate the significance of the variances in terms of the potential to impact future budgeting decisions and planning. [ACC-202-02] IV. In an addendum, submit your completed workbook, including the following: A. Accurately classify all of your costs in the “Cost Classification” tab. [ACC-202-01] B. Conduct a cost-volume profit analysis: 1. Determine your contribution margin per unit and contribution margin ratio in the “Contribution Margin Analysis” tab. [ACC-202-01] 2. Determine your break-even points for achieving your target profits in the “Break-even analysis” tab. [ACC-202-01] Milestones Milestone One: First Part of Workbook In Module Two, you will submit the “Cost Classifications” and “Variable_Fixed” tabs in your provided final project workbook. This milestone will be graded with the Milestone One Rubric.  3 Milestone Two: Second Part of Workbook In Module Four, you will submit the “Contribution Margin Analysis” and “Break-even Analysis” tabs in your provided final project workbook. This milestone will be graded with the Milestone Two Rubric. Milestone Three: Final Workbook In Module Five, you will submit “COGM Schedule,” “Income Statement,” and “Variances” tabs in your provided final project workbook. This milestone will be graded with the Milestone Three Rubric. Final Submission: Presentation to Investors In Module Seven, you will submit your final project. It should be a complete, polished artifact containing all of the critical elements of the final prompt. It should reflect the incorporation of feedback gained throughout the course. This submission will be graded with the Final Project Rubric.

ESSENTIALLY, PLEASE LOOK AT THE WORKBOOK ATTACHED, IN WHICH I WORKED OUT SOME OF THE PROBLEMS AND VERIFY THE DETAIL AND MAKE ANY CORRECTIONS IF NEED BE, BECAUSE THAT INFO IS HELPFUL FOR THE ASSIGNMENT IN QUESTION.

i HAVE ATTACHED THE WORKBOOK AND THE RUBRIC FOR THE QUESTION AT HAND.

Please let me know if you are able to help

Managerial Accounting

Managerial Accounting

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  1. Accounts receivable arising from sales to customers amounted to $120000 and $105000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $457000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is
  2. Catalina Company reported a net loss of $15000 for the year ended December 31, 2017. During the year, accounts receivable decreased $7500, inventory increased $12000, accounts payable increased by $15000, and depreciation expense of $9000 was recorded. During 2017, operating activities
  3. A company had net income of $282000. Depreciation expense is $26000. During the year, accounts receivable and inventory increased $15000 and $40000, respectively. Prepaid expenses and accounts payable decreased $2000 and $14000, respectively. There was also a loss on the sale of equipment of $17000. How much cash was provided by operating activities?
  4. If $2500000 of bonds are issued during the year but $4000000 of old bonds are retired during the year, the statement of cash flows will show a(n)
  5. If a gain of $225000 is incurred in selling (for cash) a building having a book value of $900000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is
  6. If a loss of $9000 is incurred in selling (for cash) office equipment having a book value of $90000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is
  7. Catalina Company reported net income of $200000 for the year ended December 31, 2017. During the year, inventories decreased by $40000, accounts payable decreased by $60000, depreciation expense was $45000 and a gain on disposal of equipment of $15000 was recorded. Net cash provided by operating activities in 2017 using the indirect method was
  8. During 2017, Ecuyer Industries reported cash provided by operations of $794000, cash used in investing of $686000, and cash used in financing of $190000. In addition, cash spent for fixed assets during the period was $2276000. Average current liabilities were $650000 and average total liabilities were $1716000. No dividends were paid. Based on this information, what was Ecuyer’s free cash flow?
  9. If a company has a discontinued operation gain of $30000 and a 32% tax rate, what is the effect on net income?
  10. Dandy Candy Company sold its licorice division resulting in a loss of $80000. Assuming a tax rate of 25%, the loss on this disposal will be reported on the income statement at what amount?
  11. Lupton Inc. disposes of an unprofitable segment of its business. The operation of the segment suffered a $200000 loss in the year of disposal. The loss on disposal of the segment was $100000. If the tax rate is 30%, and income before income taxes was $1600000,
  12. Danner Corporation reported net sales of $650000, $720000, and $780000 in the years 2016, 2017, and 2018, respectively. If 2016 is the base year, what percentage do 2018 sales represent of the base?

13.Assume the following sales data for a company:

2018 $980000
2017 $875000
2016 700000

If 2016 is the base year, what is the percentage increase in sales from 2016 to 2017?

 

 

 

 

14.

Salamagundi, Inc. has the following Income Statement (in millions):

SALAMAGUNDI, INC.
Income Statement
For the Year Ended December 31, 2017
Net Sales $160
Cost of Goods Sold    100
Gross Profit 60
Operating Expenses    40
Net Income $  20

Using vertical analysis, what percentage is assigned to gross profit?

 

Cochran Corporation, Inc. has the following income statement (in millions):

COCHRAN CORPORATION, INC.
Income Statement
For the Year Ended December 31, 2017
Net Sales $240
Cost of Goods Sold     150
Gross Profit 90
Operating Expenses     65
Net Income $  25

Using vertical analysis, what percentage is assigned to net income?

  1. A company with $60,000 in current assets and $35,000 in current liabilities pays a $1,000 current liability. As a result of this transaction, the current ratio and working capital will
both decrease.

 

both increase.

 

increase and remain the same, respectively.

 

remain the same and decrease, respectively.

 

  1. Winsor Clothing Store had a balance in the Accounts Receivable account of $760000 at the beginning of the year and a balance of $840000 at the end of the year. Net credit sales during the year amounted to $7200000. The average collection period of the accounts receivable in terms of days was
  2. Chodron Corporation had net credit sales of $13000000 and cost of goods sold of $9250000 for the year. The average inventory for the year amounted to $1250000. The inventory turnover for the year is
  3. The current assets of Orangette Company are $292500. The current liabilities are $130000. The current ratio expressed as a proportion is
  4. A company has an accounts receivable turnover of 10. The average net accounts receivable during the period are $900000. What is the amount of net credit sales for the period?
  5. If the average collection period is 73 days, what is the accounts receivable turnover?
  6. A company has an average inventory on hand of $90000 and its average days in inventory is 36.5 days. What is the cost of goods sold?
  7. The following information pertains to Unique Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.
Assets
Cash and short-term investments $ 40000
Accounts receivable (net) 25000
Inventory 20000
Property, plant and equipment  210000
Total Assets $295000
Liabilities and Stockholders’ Equity
Current liabilities $ 60000
Long-term liabilities 85000
Stockholders’ equity—common  150000
Total Liabilities and Stockholders’ Equity $$295000
   
Income Statement
Sales revenue $85000
Cost of goods sold  45000
Gross profit 40000
Operating expenses  20000
Net income $ 20000
   
Number of shares of common stock 6000
Market price of common stock $20
Dividends per share on common stock 0.9
Cash provided by operations $30000

What is the current ratio for this company?

 

 

 

  1. The following information pertains to Unique Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.
Assets
Cash and short-term investments $ 40000
Accounts receivable (net) 25000
Inventory 20000
Property, plant and equipment  210000
Total Assets $295000
Liabilities and Stockholders’ Equity
Current liabilities $ 60000
Long-term liabilities 85000
Stockholders’ equity—common  150000
Total Liabilities and Stockholders’ Equity $$295000
   
Income Statement
Sales revenue $85000
Cost of goods sold  45000
Gross profit 40000
Operating expenses  20000
Net income $ 20000
   
Number of shares of common stock 6000
Market price of common stock $20
Dividends per share on common stock 0.9
Cash provided by operations $30000

What is the return on assets for this company?

 

 

 

 

 

 

 

 

 

 

 

  1. The following information pertains to Unique Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.
Assets
Cash and short-term investments $ 40000
Accounts receivable (net) 25000
Inventory 20000
Property, plant and equipment  210000
Total Assets $295000
Liabilities and Stockholders’ Equity
Current liabilities $ 60000
Long-term liabilities 85000
Stockholders’ equity—common  150000
Total Liabilities and Stockholders’ Equity $$295000
   
Income Statement
Sales revenue $85000
Cost of goods sold  45000
Gross profit 40000
Operating expenses  20000
Net income $ 20000
   
Number of shares of common stock 6000
Market price of common stock $20
Dividends per share on common stock 0.9
Cash provided by operations $30000

What is the profit margin for this company?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

26.

Assets
Cash and short-term investments $ 40000
Accounts receivable (net) 25000
Inventory 20000
Property, plant and equipment  210000
Total Assets $295000
Liabilities and Stockholders’ Equity
Current liabilities $ 60000
Long-term liabilities 85000
Stockholders’ equity—common  150000
Total Liabilities and Stockholders’ Equity $$295000
   
Income Statement
Sales revenue $85000
Cost of goods sold  45000
Gross profit 40000
Operating expenses  20000
Net income $ 20000
   
Number of shares of common stock 6000
Market price of common stock $20
Dividends per share on common stock 0.9
Cash provided by operations $30000

What is the return on common stockholders’ equity for this company?

 

  1. Junebag Corporation reported net income $24000; net sales $400000; and average assets $600000 for 2017. What is the 2017 profit margin?

 

 

 

 

 

 

 

 

  1. The following information pertains to Unique Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.
Assets
Cash and short-term investments $  45000
Accounts receivable (net) 30000
Inventory 25000
Property, plant and equipment   210000
Total Assets $310000
Liabilities and Stockholders’ Equity
Current liabilities $  60000
Long-term liabilities 95000
Stockholders’ equity—common   155000
Total Liabilities and Stockholders’ Equity $310000
   
Income Statement
Sales revenue $ 116000
Cost of goods sold    66000
Gross profit 50000
Operating expenses 30000
Net income $ 20000
   
Number of shares of common stock 6000
Market price of common stock $20
Dividends per share on common stock 0.5
Cash provided by operations $35000

What is the return on assets for this company?

 

Managerial Accounting

Managerial Accounting

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Winfrey Co.’s March 31 inventory of raw materials is $140,000. Raw materials purchases in April are $470,000, and factory payroll cost in April is $253,000. Overhead costs incurred in April are: indirect materials, $24,000; indirect labor, $15,000; factory rent, $19,000; factory utilities, $11,000; and factory equipment depreciation, $68,100. The predetermined overhead rate is 55% of direct labor cost. Job 306 is sold for $360,000 cash in April. Costs of the three jobs worked on in April follow.
Job 306 Job 307 Job 308
  Balances on March 31
     Direct materials $ 14,000 $ 21,000
     Direct labor 14,000 6,000
     Applied overhead 7,700 3,300
  Costs during April
     Direct materials 95,000 170,000 $  65,000
     Direct labor 28,000 70,000 140,000
     Applied overhead ? ? ?






  Status on April 30 Finished (sold)  Finished (unsold) In process

references

 

 1.
value:
10.00 points
Required:
1. Determine the total of each production cost incurred for April (direct labor, direct materials, and applied overhead), and the total cost assigned to each job (including the balances from March 31). (Leave no cells blank – be certain to enter “0” wherever required. Omit the “$” sign in your response. )
306 307 308 April Total
  Beginning goods in process
(From March)
$

a. Materials purchases (on credit), factory payroll (paid in cash), and actual overhead costs including indirect materials and indirect labor. (Factory rent and utilities are paid in cash.)
b. Assignment of direct materials, direct labor, and applied overhead costs to the Goods in Process Inventory.
c. Transfer of Jobs 306 and 307 to the Finished Goods Inventory.
d. Cost of goods sold for Job 306.
e. Revenue from the sale of Job 306.
f. Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account. (The amount is not material.)
2. Prepare journal entries for the month of April to record the above transactions. (Omit the “$” sign in your response.)
General Journal Debit Credit
a.   To record materials purchases.
3. Prepare a manufacturing statement for April (use a single line presentation for direct materials and show the details of overhead cost.) (Amounts to be deducted should be indicated with a minus sign. Omit the “$” sign in your response.)
WINFREY COMPANY
Manufacturing Statement
For Month Ended April 30
$ $
4.1 Compute gross profit for April. (Omit the “$” sign in your response.)
  Gross profit $

a. Direct materials costs to Goods in Process Inventory.
b. Direct labor costs to Goods in Process Inventory.
c. Overhead costs to Goods in Process Inventory.
d. Indirect materials costs to the Factory Overhead account.
e. Indirect labor costs to the Factory Overhead account.
Required:
1. Prepare journal entries to assign the above costs. (Omit the “$” sign in your response.)
Date General Journal Debit Credit
a.
2.1 Determine the revised balance of the Factory Overhead account after making the entries in part 1. Determine whether there is any under- or overapplied overhead for the year. (Input all amounts as positive values. Omit the “$” sign in your response.)
$
3. Prepare a revised trial balance. (The items in the Trial Balance should be grouped as follows: Assets, Liabilities (in order of their liquidity), Equity, Revenues, and Expenses. Leave no cells blank – be certain to enter “0” wherever required. Omit the “$” sign in your response.)
THAI BAY COMPANY
Trial Balance
December 31, 2011
Debit Credit
$ $
4.1 Prepare an income statement for year 2011. (Amounts to be deducted and net loss amount should be indicated with minus sign. Omit the “$” sign in your response.)
THAI BAY COMPANY
Income Statement
For Year Ended December 31, 2011
$ $ $ $ $ $ [removed]