Questions from General Accounting

Q: Hospitable Co. provides the following sales forecast for the next four

Hospitable Co. provides the following sales forecast for the next four months: The company wants to end each month with ending finished goods inventory equal to 25% of next month’s...

Q: Refer to the information in Exercise 22-3. In addition

Refer to the information in Exercise 22-3. In addition, each finished unit requires five pounds of raw materials and the company wants to end each month with raw materials inventory equal to 30% of ne...

Q: The production budget for Manner Company shows units to be produced as

The production budget for Manner Company shows units to be produced as follows: July, 620; August, 680; September, 540. Each unit produced requires two hours of direct labor. The direct labor rate is...

Q: Refer to Exercise 22-8. For April, May,

Refer to Exercise 22-8. For April, May, and June, prepare (1) a direct labor budget and (2) a factory overhead budget. Data from Exercise 22-8: Rad Co. provides the following sales forecast and produ...

Q: JPAK Company manufactures and sells mountain bikes. It normally operates eight

JPAK Company manufactures and sells mountain bikes. It normally operates eight hours a day, five days a week. Using this information, classify each of the following costs as fixed or variable. If addi...

Q: Refer to the information in Exercise 23-8 and compute the

Refer to the information in Exercise 23-8 and compute the (1) direct labor rate and (2) direct labor efficiency variances. Indicate whether each variance is favorable or unfavorable. Information from...

Q: Hutto Corp. has set the following standard direct materials and direct

Hutto Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures. During May the company incurred the following actual costs to produce 9,0...

Q: Reed Corp. has set the following standard direct materials and direct

Reed Corp. has set the following standard direct materials and direct labor costs per unit for the product it manufactures. During June the company incurred the following actual costs to produce 9,0...

Q: Hart Company made 3,000 bookshelves using 22,000 board

Hart Company made 3,000 bookshelves using 22,000 board feet of wood costing $266,200. The company’s direct materials standards for one bookshelf are 8 board feet of wood at $12 per board foot. 1. Comp...

Q: Refer to Exercise 23-13. Hart Company records standard costs

Refer to Exercise 23-13. Hart Company records standard costs in its accounts and its materials variances in separate accounts when it assigns materials costs to the Work in Process Inventory account....