Question: After deciding on a mortgage, one of

> 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 break-even point. Instructions a. Determine the cont

> 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 line is eliminated, $20,000 of fixed costs will remain. P

> 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, but the breakeven point increased to $420,000. Calcu

> 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 margin of safety. / / Instructions a. Determine the inn's

> 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. It has fixed costs of $5,440,000. Instructions Calcula

> 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 expected to be 30% of sales. Calculate the sales require

> 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 contribution margin per unit. Calculate break-even poi

> 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 sales mix and contribution margin ratio of its offerings

> 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 amount to $50 per copy. Fixed costs amount to $450,000

> 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 operated by a technician. The hospital requested an ana

> 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 breakeven point. The company's total fixed costs to produc

> 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 following course of action to increase operating income:

> 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 statement and calculate contribution margin. Instructi

> 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 useful life with no salvage value. The new machine will l

> 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 of safety ratio, and sales for target operating income

> 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 using (a) the mathematical equation and (b) contributi

> 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%. The contribution margin ratio of each candle type i

> 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 for $400 and has variable costs of $300. The sales mix

> 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 job-order cost accounting system with arrows showing t

> 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. Determine the company's weighted-average contributi

> 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. Prepare a CVP income statement for the quarter ended March 3

> 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, a large green question mark on a white flocked hockey

> Chris Koplinski has prepared the following list of statements about managerial accounting and financial accounting. Explain the distinguishing features of managerial accounting. 1. Financial accounting focuses on providing information to internal users.

> Financial accounting information and managerial accounting information have a number of distinguishing characteristics, which are listed below. Explain the distinguishing features of managerial accounting. 1. ________ General-purpose reports 2. ________

> 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 financial officer 3. ______Treasurer 4. ______Control

> 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, production, and sales for the coming year. He has a f

> 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 following statements best describes each of the above

> 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.

> The following table compares various features between managerial and financial accounting: Explain the distinguishing features of managerial accounting. // Instructions Complete the table above.

> 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 on financial results. Instructions a. Calculate the

> 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 the canoe company's headquarters in Winona, Minnesota

> 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 in the budget process. 2. Financial accounting reports

> 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 financial statements to each department. In addition, the

> 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. It has a plant located in a small city north of Toronto

> 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 by $3,500. It has been decided this over-applied overhe

> 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 labour. Record the entries to assign service salaries a

> 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 production using a predetermined rate of 90% of direct labour

> 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 processing costs of $60,000. It allocates $25,000 of these cost

> 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 roommate why a company may use both types of cost account

> 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 municipality. Three of the local installation operators were

> 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.

> 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 been quite successful and you are now faced with some

> 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.) Prepare job cost sheets. Data from BE 3.4 & 3.5: In

> 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 the buyer is willing to pay the actual cost plus a re

> 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 July: // Activity in accounts: On July 1, finished

> 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 overhead rate based on direct labour hours to apply overhead

> 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 through 90 and incurred the following costs: Additional

> 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 batches of 20 to 40 units. Each batch is given a job numbe

> 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, TC-1. TC-1 is a seasonal product that is manufactured

> 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 a summary of the cost of materials used and the numbe

> 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 the contribution margin, break-even point in units, and

> 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% contribution margin). The other 20% of its revenue came from del

> 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 determine missing amounts. / / Other data: 1. On July

> 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 labour hours in Department B, and machine hours in Departme

> 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 was no inventory of finished goods on June 1. During the

> 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 & Die accumulated the following manufacturing costs: ra

> 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, 2020, there was only one job in process, which had th

> 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 schedule. Raw Materials Inventory â€&brvba

> 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 factory building …………………… 150,000 Sales salaries …………………

> 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. Raw materials inventory totalled $20,000 on January 1.

> 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 prior to January 1 on this job were as follows: direct

> 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 three divisions: electronics, fibre optics, and plumbi

> 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 ending December 31, 2020, is as follows: Determine the co

> 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 and determine missing amounts. Other data: 1. On July

> 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 January 1, 2020, there was only one job in process, w

> 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 hours in Department E, and machine hours in Department

> 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 and finished goods inventories were undamaged. Analyze a

> 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 rate is set at the beginning of each fiscal year by fo

> 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 materials used. Prepare an entry for the assignment of ra

> 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 ledger for Enos Inc. contains the following data: Pre

> 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 materials inventory totalled $15,000 on January 1. Du

> 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 incurred prior to January 1 on this job were as follows: dir

> 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 costs in a single indirect cost pool and allocates the

> 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 operating income. Selling price ……………………………… $750 Var

> 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 accountant prepared the following annual income statement:

> 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 on the number of decorator hours incurred. Listed bel

> 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 concerning the three audit jobs conducted during November: Det

> 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 ………………………….. Manufacturing Firm Accounts Supplies ………………

> 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 its cost in the month following completion. Instruct

> 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 minimum transfer price that the machining division shoul

> 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 transfer price? Determine effect of transfer on profit.

> 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 of labour and 25% profit on materials. Materials are tr

> 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. Many publicly funded hospitals in Canada charge visitors

> 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 price of $595 for the same route. The management of Gia

> 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 31, 2020, Kosinksi's break-even point was $1,350,000.

> 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 an affluent suburban community from a middle-class co

> 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 two of the other divisions. The board division manufac

> 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 $12,600, Work in Process $17,400, and Raw Materials $8,2

> 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 investment. The WindAir division manufactures and sell

> 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 manufacturing costs per unit ………………….. 25 Variable selling co

> 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. The processing division is currently operating at 1 m

> 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 100,000 units of component TR222. Vancouver’s variabl

> 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 needed bearings for garden tractor wheels. It normally b

> 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-assembly part for which there is a competitive market.

> 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 its components. Division A needs 10,000 ties for the

> 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), direct materials were $511,000, direct labour was $285,000

> 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 absorption-cost pricing and variable-cost pricing. /

> 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-cost pricing and other managers prefer variable-cost

> 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 and colouring ingredients. The finished product is packa

> 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 purchased on account were $192,000, and factory wages incurr