Briggs Company has income from operations of $36,000, invested assets of $180,000, and sales of $720,000. Use the DuPont formula to compute the rate of return on investment and show (a) the profit margin, (b) the investment turnover, and (c) the rate of return on investment.
> In the experiment described in Exercise 1, in fact the study also compared the use of butter or margarine in the recipes. The design was balanced, with each combination of chip type and oil type tested. a) What were the factors and factor levels? b) Wh
> As part of the marketing group at Pixar, you are asked to find out the age distribution of the audience of Pixar’s latest film. With the help of 10 of your colleagues, you conduct exit interviews by randomly selecting people to question at 20 different m
> A student finds data on an Internet site that contains financial information about selected companies. He plans to analyze the data and use the results to develop a stock investment strategy. What kind of data source is he using? What concerns might you
> For the real estate data of Exercise 1, do the data appear to have come from a designed survey or experiment? What concerns might you have about drawing conclusions from this data set? Data Table from Exercise 1: House_ID Neighborhood Mail_ZIP Acre
> Referring to the bookstore data table of Exercise 2, a) For each variable, would you describe it as primarily categorical, or quantitative? If quantitative, what are the units? If categorical, is it ordinal or simply nominal? b) Are these data a time se
> Referring to the real estate data table of Exercise 1, a) For each variable, would you describe it as primarily categorical, or quantitative? If quantitative, what are the units? If categorical, is it ordinal or simply nominal? b) Are these data a time
> A local bookstore is keeping a database of its customers to find out more about their spending habits so that the store can start to make personal recommendations based on past purchases. Here are the first five rows of their database: a) What does a row
> In many state lotteries, you can choose which numbers to play. Consider a common form in which you choose 5 numbers. Which of the following strategies can improve your chance of winning? If the method works, explain why. If not, explain why using appropr
> A real estate major collected information on some recent local home sales. The first 6 lines of the database appear below. The columns correspond to the house identification number, the community name, the ZIP code, the number of acres of the property, t
> For the table in Exercise 8: a) Find the column percentages. b) Looking at the column percentages in part a, does the distribution of how many times someone has seen the movie look the same for each age group? Comment briefly. c) Make a segmented bar cha
> As part of the human resource group of your company you are asked to summarize the educational levels of the 512 employees in your division. From company records, you find that 164 have no college degree (None), 42 have an associate’s degree (AA), 225 ha
> Is the experiment of Exercise 5 blind? Could it be made double blind? Explain. Exercise 5: An Internet sale site randomly sent customers to one of three versions of its welcome page. It recorded how long each visitor stayed in the site. Here is a diagra
> For the following experiment, identify the experimental units, the treatments, the response, and the random assignment. A commercial food lab compared recipes for chocolate chip cookies. They baked cookies with different kinds of chips (milk chocolate,
> Product R is normally sold for $52 per unit. A special price of $42 is offered for the export market. The variable production cost is $30 per unit. An additional export tariff of 30% of revenue must be paid for all export products. Assume there is suffic
> My Life Chronicles Inc. collects 30% of its sales on account in the month of the sale and 70% in the month following the sale. If sales on account are budgeted to be $170,000 for June and $200,000 for July, what are the budgeted cash receipts from sales
> Determine the average rate of return for a project that is estimated to yield total income of $170,000 over five years, has a cost of $320,000, and has a $20,000 residual value.
> The following information was taken from Kellman Company’s balance sheet: Determine the company’s (a) ratio of fixed assets to long-term liabilities and (b) ratio of liabilities to stockholders’ equ
> The actual price for a product was $28 per unit, while the planned price was $25 per unit. The volume decreased by 20,000 units to 410,000 actual total units. Determine (a). the sales quantity factor and (b). the unit price factor for sales.
> The costs per equivalent unit of direct materials and conversion in the Filling Department of Lilac Skin Care Company are $0.45 and $0.15, respectively. The equivalent units to be assigned costs are as follows: The beginning work in process inventory ha
> Hosmer Company completed 312,000 units during the year at a cost of $7,800,000. The beginning finished goods inventory was 22,000 units at $440,000. Determine the cost of goods sold for 325,000 units, assuming a FIFO cost flow.
> Prepare a 2016 income statement through gross profit for Lo-bed Company, using the variance data in Practice Exercises 22-1A, 22-2A, 22-3A, and 22-4A. Assume Lo-bed sold 4,000 units at $250 per unit. Exercises 22-1A: Lo-bed Company produces a product t
> On the basis of the following data, the general manager of Featherweight Shoes Inc. decided to discontinue Children’s Shoes because it reduced income from operations by $17,000. What is the flaw in this decision, if it is assumed fixed
> Frigid Motors Inc. assembles and sells snowmobile engines. The company began operations on July 1, 2016, and operated at 100% of capacity during the first month. The following data summarize the results for July: a. Prepare an income statement accordin
> Fancy Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 100 employees. Each employee presently provides 40 hours of labor per week. Information about a production week is as follows
> Prepare a cost of goods sold budget for Magnolia Candle Inc. using the information in Practice Exercises 21-3B and 21-4B. Assume the estimated inventories on January 1, 2016, for finished goods and work in process were $9,800 and $3,600, respectively. Al
> Boswell Company incurred an activity cost of $68,000 for inspecting 16,000 units of production. Management determined that the inspecting objectives could be met without inspecting every unit. Therefore, rather than inspecting 16,000 units of production,
> Ebony Company has the following information for July: For July, determine (a) the cost of goods manufactured and (b) the cost of goods sold. Cost of direct materials used in production. $67,200 Direct labor 88,000 Factory overhead - 44,800 Work in
> The cost of direct materials transferred into the Rolling Department of Keystone Steel Company is $510,000. The conversion cost for the period in the Rolling Department is $81,200. The total equivalent units for direct materials and conversion are 8,500
> Lo-bed Company produces a product that requires two standard gallons per unit. The standard price is $20.00 per gallon. If 4,000 units required 8,200 gallons, which were purchased at $19.75 per gallon, what is the direct materials (a) price variance, (b)
> Einhorn Company has fixed costs of $105,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company’s two products follow: The sales mix for products QQ and ZZ is 40% and 60%, respectively. De
> Project A requires an original investment of $32,600. The project will yield cash flows of $7,000 per year for nine years. Project B has a calculated net present value of $3,500 over a six-year life. Project A could be sold at the end of six years for a
> Lexter Company incurred an activity cost of $180,000 for inspecting 25,000 units of production. Management determined that the inspecting objectives could be met without inspecting every unit. Therefore, rather than inspecting 25,000 units of production,
> The cost of direct materials transferred into the Filling Department of Lilac Skin Care Company is $20,250. The conversion cost for the period in the Filling Department is $6,372. The total equivalent units for direct materials and conversion are 45,000
> At the end of April, Almerinda Company had completed Jobs 50 and 51. Job 50 is for 23,040 units, and Job 51 is for 26,000 units. Using the data from Practice Exercises17-1A, 17-2A, and 17-4A, determine Practice Exercises17-1A On April 6, Almerinda Com
> The financial statements for Nike, Inc., are presented in Appendix B at the end of the text. The following additional information (in thousands) is available: Instructions 1. Determine the following measures for the fiscal years ended May 31, 2013 (fi
> The following data were extracted from the income statement of Saleh Inc.: a. Determine for each year (1) the inventory turnover and (2) the number of days’ sales in inventory. Round to the nearest dollar and one decimal place. b. Wha
> A company reports the following: Determine (a) the inventory turnover and (b) the number of days’ sales in inventory. Round to one decimal place. Cost of goods sold. $630,000 Average inventory. 90,000
> Draper Bank uses activity-based costing to determine the cost of servicing customers. There are three activity pools: teller transaction processing, check processing, and ATM transaction processing. The activity rates associated with each activity pool a
> The Consumer Division of Hernandez Company has income from operations of $90,000 and assets of $450,000. The minimum acceptable rate of return on assets is 10%. What is the residual income for the division?
> Lo-bed Company produced 4,000 units that require two standard gallons per unit at $20.00 standard price per gallon. The company actually used 8,200 gallons in production. Journalize the entry to record the standard direct materials used in production.
> The following information is for Olivio Coaster Bikes Inc.: Determine the contribution margin for (a) Red Dream and (b) North Region. North South Sales volume (units): Red Dream 50,000 66,000 Blue Marauder 112,000 140,000 Sales price: Red Dream $48
> At the beginning of the period, the Assembly Department budgeted direct labor of $112,000 and property tax of $12,000 for 7,000 hours of production. The department actually completed 7,500 hours of production. Determine the budget for the department, ass
> Product T is produced for $5.90 per pound. Product T can be sold without additional processing for $7.10 per pound, or processed further into Product U at an additional cost of $0.74 per pound. Product U can be sold for $8.00 per pound. Prepare a differe
> Prepare a cost of goods sold budget for My Life Chronicles Inc. using the information in Practice Exercises 21-3A and 21-4A. Assume the estimated inventories on January 1, 2016, for finished goods and work in process were $25,000 and $19,000, respectivel
> Wide Open Industries Inc. has fixed costs of $475,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company’s two products follow: The sales mix for products AA and BB is 60% and 40%, respec
> Fixed manufacturing costs are $60 per unit, and variable manufacturing costs are $150 per unit. Production was 453,000 units, while sales were 426,000 units. Determine (a). whether variable costing income from operations is less than or greater than abs
> In divisional income statements prepared for LeFevre Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll distributions, and the Purchasing Department costs are charged back on the basis of the nu
> Prior to the first month of operations ending July 31, 2016, Muzenski Industries Inc. estimated the following operating results: The company is evaluating a proposal to manufacture 36,000 units instead of 28,800 units, thus creating an ending inventory
> A quality control activity analysis indicated the following four activity costs of a hotel: Sales are $3,000,000. Prepare a cost of quality report. Inspecting cleanliness of rooms $ 108,000 Processing lost customer reservations ...... 450,000 Rewor
> Magnolia Candle Inc. budgeted production of 74,200 candles in 2016. Each candle requires molding. Assume that 12 minutes are required to mold each candle. If molding labor costs $14.00 per hour, determine the direct labor cost budget for 2016.
> The Rolling Department of Keystone Steel Company had 400 tons in beginning work in process inventory (20% complete). During the period, 7,900 tons were completed. The ending work in process inventory was 1,000 tons (30% complete). What are the total equi
> A machine with a book value of $126,000 has an estimated six-year life. A proposal is offered to sell the old machine for $84,000 and replace it with a new machine at a cost of $145,000. The new machine has a six-year life with no residual value. The new
> A quality control activity analysis indicated the following four activity costs of a manufacturing department: Sales are $1,000,000. Prepare a cost of quality report. Round percents to one decimal place. Rework. $ 39,000 Inspecting incoming raw mate
> Light Company has the following information for January: Determine (a) the manufacturing margin, (b) the contribution margin, and (c) income from operations for Light Company for the month of January. Sales . $648,000 Variable cost of goods sold .
> Fancy Feet Company manufactures and sells shoes. Fancy Feet uses activity-based costing to determine the cost of the sales order processing and the shipping activity. The sales order processing activity has an activity rate of $12 per sales order, and th
> During the first month of operations ended May 31, 2016, Frost Point Fridge Company manufactured 40,000 mini refrigerators, of which 36,000 were sold. Operating data for the month are summarized as follows: Instructions 1. Prepare an income statement
> A project is estimated to cost $104,328 and provide annual net cash flows of $21,000 for eight years. Determine the internal rate of return for this project, using Exhibit 5. Exhibit 5: Present Value of an Annuity of $1 at Compound Interest Year 6%
> Lo-bed Company produced 4,000 units of product that required four standard hours per unit. The standard fixed overhead cost per unit is $1.20 per hour at 16,400 hours, which is 100% of normal capacity. Determine the fixed factory overhead volume variance
> The comparative accounts payable and long-term debt balances for a company follow. Based on this information, what is the amount and percentage of increase or decrease that would be shown in a balance sheet with horizontal analysis? Current Year Pr
> My Life Chronicles Inc. budgeted production of 238,900 diaries in 2016. Each diary requires assembly. Assume that six minutes are required to assemble each diary. If assembly labor costs $12.00 per hour, determine the direct labor cost budget for 2016.
> Variable manufacturing costs are $13 per unit, and fixed manufacturing costs are $75,000. Sales are estimated to be 12,000 units. a. How much would absorption costing income from operations differ between a plan to produce 12,000 units and a plan to prod
> Versa Inc. sells a product for $100 per unit. The variable cost is $75 per unit, and fixed costs are $45,000. Determine (a) the break-even point in sales units and (b) the breakeven point in sales units if the company desires a target profit of $25,000.
> The Filling Department of Lilac Skin Care had 4,000 ounces in beginning work in process inventory (70% complete). During the period, 42,800 ounces were completed. The ending work in process inventory was 6,200 ounces (40% complete). What are the total eq
> Almerinda Company estimates that total factory overhead costs will be $1,750,000 for the year. Direct labor hours are estimated to be 500,000. For Almerinda Company, (a) determine the predetermined factory overhead rate using direct labor hours as the ac
> A company reports the following: Determine (a) the accounts receivable turnover and (b) the number of days’ sales in receivables. Round to one decimal place. Sales . $832,000 Average accounts receivable (net). . 80,000
> Revenue and expense data for Gresham Inc. for two recent years are as follows: a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. Round to one decimal place. b. Comment on the significant changes
> DiSalvio Co. uses a job order cost system. The following data summarize the operations related to production for May: a. Materials purchased on account, $634,000. b. Materials requisitioned, $646,200, of which $74,500 was for general factory use. c. Fact
> The manufacturing costs of Lightfoot Industries for three months of the year follow: Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. Total Costs Units Produced $640,000 30,000 units January February
> The annual budgeted conversion costs for a lean cell are $144,000 for 1,800 production hours. Each unit produced by the cell requires 9 minutes of cell process time. During the month, 1,000 units are manufactured in the cell. The estimated materials cost
> Using the data for Lee Company from Practice Exercise 23-2B along with the following data, determine the divisional income from operations for the Division and the Commercial Division: Exercise 23-2B: The centralized computer technology department of
> The following data were adapted from a recent income statement of Procter & Gamble Company: Assume that the variable amount of each category of operating costs is as follows: a. Based on the data given, prepare a variable costing income statement
> The Rolling Department of Keystone Steel Company had 400 tons in beginning work in process inventory (20% complete). During the period, 7,900 tons were completed. The ending work in process inventory was 1,000 tons (30% complete). What are the total equi
> Magnolia Candle Inc. budgeted production of 74,200 candles in 2016. Wax is required to produce a candle. Assume eight ounces (one-half of a pound) of wax is required for each candle. The estimated January 1, 2016, wax inventory is 2,500 pounds. The desir
> The annual budgeted conversion costs for a lean cell are $663,000 for 1,950 production hours. Each unit produced by the cell requires 15 minutes of cell process time. During the month, 665 units are manufactured in the cell. The estimated materials costs
> A project has estimated annual net cash flows of $6,800 for five years and is estimated to cost $23,125. Assume a minimum acceptable rate of return of 12%. Using Exhibit 5, determine (1) the net present value of the project and (2) the present value inde
> The Filling Department of Lilac Skin Care Company had 4,000 ounces in beginning work in process inventory (70% complete). During the period, 42,800 ounces were completed. The ending work in process inventory was 6,200 ounces (40% complete). What are the
> During April, Almerinda Company incurred factory overhead costs as follows: indirect materials, $42,000; indirect labor, $90,000; utilities cost, $16,000; and factory depreciation, $54,000. Journalize the entry to record the factory overhead incurred dur
> BeeGee Company, operating at full capacity, sold 150,000 units at a price of $116 per unit during the current year. Its income statement is as follows: The division of costs between variable and fixed is as follows: Management is considering a plant
> The following items are reported on a company’s balance sheet: Determine (a) the current ratio and (b) the quick ratio. Round to one decimal place. Cash . $160,000 Marketable securities 75,000 Accounts receivable (net) 65,000 Inve
> Using the data for Camtro Company from Practice Exercise 12-2A along with the following data, determine the divisional income from operations for the Northeast and Pacific divisions: Exercise 12-2A: The centralized employee travel department of Camtro
> Which of the following industries would typically use job order costing, and which would typically use process costing? Dentist . Movie studio Gasoline refining. Paper manufacturing Flour mill. . Custom printing
> Lo-bed Company produced 4,000 units of product that required four standard hours per unit. The standard variable overhead cost per unit is $3.00 per hour. The actual variable factory overhead was $51,240. Determine the variable factory overhead controlla
> On June 30, the end of the first month of operations, Bastile Company prepared the following income statement, based on the absorption costing concept: If the fixed manufacturing costs were $192,000 and the variable selling and administrative expenses
> The beginning inventory is 11,600 units. All of the units that were manufactured during the period and 11,600 units of the beginning inventory were sold. The beginning inventory fixed manufacturing costs are $32 per unit, and variable manufacturing costs
> Santana sells a product for $115 per unit. The variable cost is $75 per unit, while fixed costs are $65,000. Determine (a) the break-even point in sales units and (b) the breakeven point if the selling price were increased to $125 per unit.
> The total factory overhead for Diva-nation is budgeted for the year at $180,000, divided into four activities: cutting, $18,000; sewing, $36,000; setup, $96,000; and inspection, $30,000. Diva-nation manufactures two types of men’s pants
> A restaurant bakes its own bread for a cost of $165 per unit (100 loaves), including fixed costs of $43 per unit. A proposal is offered to purchase bread from an outside source for $110 per unit, plus $15 per unit for delivery. Prepare a differential ana
> My Life Chronicles Inc. budgeted production of 238,900 diaries in 2016. Paper is required to produce a diary. Assume five square yards of paper are required for each diary. The estimated January 1, 2016, paper inventory is 32,400 square yards. The desire
> Floor Mate Carpet Company manufactures carpets. Fiber is placed in process in the Spinning Department, where it is spun into yarn. The output of the Spinning Department is transferred to the Tufting Department, where carpet backing is added at the beginn
> Bionic Cotton Inc. manufactures and sells high-quality sporting goods equipment under its highly recognizable Cool Cat logo. The company began operations on January 1, 2016, and operated at 100% of capacity (90,000 units) during the first month, creating
> The centralized computer technology department of Lee Company has expenses of $264,000. The department has provided a total of 2,500 hours of service for the period. The Retail Division has used 1,125 hours of computer technology service during the perio
> Magnolia Candle Inc. projected sales of 75,000 candles for 2016. The estimated January 1, 2016, inventory is 3,500 units, and the desired December 31, 2016, inventory is 2,700 units. What is the budgeted production (in units) for 2016?
> Weidner Company sells 22,000 units at $30 per unit. Variable costs are $24 per unit, and fixed costs are $40,000. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations.
> On April 6, Almerinda Company purchased on account 60,000 units of raw materials at $12 per unit. On April 21, raw materials were requisitioned for production as follows: 25,000 units for Job 50 at $10 per unit and 27,000 units for Job 51 at $12 per unit
> The following data are taken from the financial statements of Krawcheck Inc. Terms of all sales are 2/10, n/55. a. For 2015 and 2016, determine (1) the accounts receivable turnover and (2) the number of days’ sales in receivables. Rou
> Keystone Steel Company has two departments, Casting and Rolling. In the Rolling Department, ingots from the Casting Department are rolled into steel sheet. The Rolling Department received 8,500 tons from the Casting Department. During the period, the Rol
> The total factory overhead for Diva-nation is budgeted for the year at $180,000, divided into two departments: Cutting, $60,000, and Sewing, $120,000. Diva-nation manufactures two types of men’s pants: jeans and khakis. The jeans require 0.04 direct labo
> Addai Company has provided the following comparative information: You have been asked to evaluate the historical performance of the company over the last five years. Selected industry ratios have remained relatively steady at the following levels for t
> The following is a list of costs incurred by several businesses: a. Cost of fabric used by clothing manufacturer b. Maintenance and repair costs for factory equipment c. Rent for a warehouse used to store work in process and finished products d. Wages of
> During the first month of operations ended March 31, 2016, Hip and Conscious Clothing Company produced 55,500 designer cowboy hats, of which 51,450 were sold. Operating data for the month are summarized as follows: During April, Hip and Conscious Cloth
