Question: EyeGuard Equipment Inc. (EEI) manufactures

> Cameron Manufacturing produces auto parts for auto manufacturers and parts wholesalers. The business is very competitive, and productivity measures are used throughout its eight manufacturing plants. Jill Owens, the manufacturing vice president, explains

> Sanders Bears produces stuffed animals. Sanders is in the process of implementing a cost forecasting system using the High-Low method. The variable cost per animal is $2.00 and the high and low costs used were $80,000 for 30,000 animals and $40,000 for 1

> Yonica Petroleum is a global manufacturer of specialty chemicals which are made from the waste products of the petroleum industry. Yonica in effect recycles a good portion of the waste from the refineries used by the large oil companies. The specialty ch

> The Marshall Company has a joint production process that produces two joint products and a by-product. The joint products are Ying and Yang, and the by-product is Bit. Marshall accounts for the costs of its products using the net realizable value method.

> Quality Chemicals manufactures three chemicals for industrial and retail customers. The largest volume product, S-210, is a sweetener used in the preparation of processed foods. The second, H-35, is used in the manufacture of commercial and household cle

> Multiproduct Corporation is a chemical manufacturer that produces two main products (Pepco-1 and Repke-3) and a by-product (SE-5) from a joint process. If Multiproduct had the proper facilities, it could process SE-5 further into a main product. The rati

> Johnston Adhesives Company makes three widely used industrial adhesives: A101, A204, and B216. See sales and production information for a gallon of each of the three adhesives in the following table. Most of Johnston’s customers ask for

> The Bean Company provides fresh coffee beans for restaurants, hotels and other food service companies. The Bean offers three types of coffee beans: Premium, Gourmet, and Quality. Each of the three coffees is produced in a joint process in which beans are

> Northwest Building Products (NBP) manufactures two lumber products from a joint milling process: residential building lumber (RBL) and commercial building lumber (CBL). A standard production run incurs joint costs of $450,000 and results in 80,000 units

> Choi Company manufactures two skin care lotions, Smooth Skin and Silken Skin, from a joint process. The joint costs incurred are $420,000 for a standard production run that generates 180,000 pints of Smooth Skin and 120,000 pints of Silken Skin. Smooth S

> Comprehensive Insurance Company has two product lines, health insurance and auto insurance. The two product lines are served by three operating departments which are necessary for providing the two types of services: claims processing, administration, an

> The Fleming Foundation is a charitable organization founded by Gaylord Fleming and Sandy Fleming. The Flemings intended for the charity to provide programs in health care for the elderly, particularly those in poverty. The two main program divisions of t

> Miller Landscaping is attempting to project costs for future quarters. Miller has compiled data and decided to use the High-Low costing method. The low value is $250,000 for 5,000 hours and the high value is $400,000 for 8,000 hours. What is the variable

> Data Performance, a computer software consulting company, has three major functional areas: computer programming, information systems consulting, and software training. Carol Bingham, a pricing analyst, has been asked to develop total costs for the funct

> Solexx Corporation allocates its service department overhead costs to producing departments. This information is for the month of June: Required: Use four decimal places (e.g., 33.3333%) in your calculations. What is the amount of maintenance and utili

> Barfield Corporation prepares business plans and marketing analysis for start-up companies in the Cleveland area. Barfield has been very successful in recent years in providing effective service to a growing number of clients. The company provides its se

> McKeoun Enterprises is a large machine tool company now experiencing alarming increases in maintenance expense in each of its four production departments. Maintenance costs are currently allocated to the production departments on the basis of direct labo

> Grand Marine Inc, (GMI) manufactures sailcloth used by sail makers that produce sails for sailboats. GMI’s sailcloth is the conventional polyester-based sail material, and is used widely in recreational boating. Sail makers throughout the world use GMI’s

> Benoit Chemical Company (BCC) produces a variety of specialty chemicals used in the pharmaceutical industry and construction industry. BCC spends almost 20% of its net revenues on research, product development, and customer development to achieve its rep

> Healthy Selections Cereals Inc (HSC) is a large food processing company specializing in whole grain, high energy, low calorie and low fat cereals that appeal to the health-conscious consumer. HSC has a premium image in the market and most of its customer

> Beaumont Specialty Chemicals (BSC) is a manufacturer of specialty chemicals sold to manufacturers, hospitals, and other users. BSC produces about 1 million gallons of its main product, BSC-22, each month. The data for BSC-22 for July follow. The chemical

> APCO Company manufactures various lines of bicycles. Because of the high volume of each line, the company employs a process costing system using the weighted-average method. Bicycle parts are manufactured in the molding department and then are consolidat

> Carson Paint Company, which manufactures quality paint to sell at premium prices, uses a single production department. Production begins by blending the various chemicals that are added at the beginning of the process and ends by filling the paint cans.

> Curry Rubber manufactures rubber bands for commercial retail companies. The accounting manager has performed a regression analysis of past data. You notice that the formula has an r-squared of .6, a t-value of 2.3, and a standard error of $200,000. The e

> Many firms rely on the internet extensively. Explain how firms using cost leadership and firms using differentiation might use the internet.

> BDB Company manufactures its one product by a process that requires two departments. The production starts in Department A and is completed in Department B. Direct materials are added at the beginning of the process in Department A. Additional direct mat

> Bhatti Company produces plastic photo frames. Two departments, molding and finishing, are involved in the manufacturing. The molding department fills the molds with hot liquid plastic that is left to cool and then opens them. The finishing department rem

> Sanyo Corporation manufactures a popular model of business calculators in a suburb of Seoul, South Korea. The production process goes through two departments: assembly and testing. The following information (in thousands of South Korean currency, the won

> Refer to the information in Problem 6-43. Required: Repeat Problem 6-43 using the FIFO method. Problem 6-43: Alvis Construction Supply Company has a department that manufactures wood trusses (wood frames used in the construction industry). The followin

> Alvis Construction Supply Company has a department that manufactures wood trusses (wood frames used in the construction industry). The following information is for the production of these trusses for the month of February: Required: Using the weighted-

> Golf World, Inc. (GWI) sells products and services for the sport of golf. One of its key business units specializes in the repair and reconditioning of golf carts. GWI enters into contracts with a number of golf clubs throughout the U.S. in which the clu

> McCallum Tool Company has two departments, assembly and finishing. The assembly department takes purchased parts and assembles the final product. The finishing department performs testing, adds other materials, and packages the product. Direct materials

> The T. L. Lin Company manufactures a variety of natural fabrics for the clothing industry in a suburb of Shanghai. The following data in Chinese currency called yuan pertain to the month of October. During October, 200,000 units were completed and tran

> Arsenio Company manufactures a single product that goes through two processes, mixing and cooking. The following data pertain to the mixing department for August: Material X is added at the beginning of work in the mixing department. Material Y is also

> Refer to the information in Problem 6-37. Required: Complete Problem 6-37 using the FIFO method. Problem 6-37: Weatherly Lumber Company processes wood pulp for manufacturing various paper products. The company employs a process costing system for its m

> Jamison Construction has implemented a costing system by use of a regression analysis. The cost per hour of labor is $35 and the fixed cost was determined to be $125,000. If Jamison projects it will be working 200,000 hours in the coming year, what is th

> Environmental sustainability is not only a potential competitive advantage to an organization, but might also be a regulatory requirement. The creation of business processes to support environmental sustainability requires the expenditure of resources an

> Aero Dynamics manufactures airplane parts and engines for a variety of military and civilian aircrafts. The company is the sole provider of rocket engines for the U.S. military. The price is set at full cost plus a 5 percent markup. Aero Dynamics’s curre

> Ellie Mosk, CEO of X-Space Industries, decided to expand the company's product offering beyond the core model rocket business. After investigation she decided to set up a separate division to design and manufacture products for the drone market. Several

> Recent competitive pressures have caused National Insurance Company to examine policies regarding personnel planning. As a start, the company has decided to experiment with and develop a time-driven ABC model for its claims processing center.  A study o

> Suppose that in addition to the call center engagement outlined above, MMI also provides service to 10 other clients, as described below in annual service: Required: 1. What is the level of idle capacity at MMI, not assuming that AS becomes a customer?

> Market Makers Inc. (MMI) provides a range of services to its retail clients—customer service for inquiries, order taking, credit checking for new customers, and a variety of related services. Auto Supermarket (AS) is a large auto dealer

> ADA Pharmaceutical Company produces three drugs—Diomycin, Homycin, and Addolin—belonging to the analgesic (painkiller) family of medication. Since its inception four years ago, ADA has used a direct labor hour-based sy

> Miami Valley Architects Inc. provides a wide range of engineering and architectural consulting services through its three branch offices in Columbus, Cincinnati, and Dayton, Ohio. The company allocates resources and bonuses to the three branches based on

> Use the same information as above for Coffee Bean Inc. (CBI) except assume now that Mona Loa and Malaysian are the only two products at CBI. Also, now include the following additional information about the practical capacity Coffee Bean has in each of it

> Coffee Bean Inc. (CBI) processes and distributes a variety of coffee. CBI buys coffee beans from around the world and roasts, blends, and packages them for resale. Currently, the firm offers 15 coffees to gourmet shops in 1-pound bags. The major cost is

> Power Drink Inc. produces sports drinks. The accounting manager has decided to implement a high-low costing system to predict future materials handling costs. She has provided you with the following table of costs for the last five years. Looking solely

> Eastern Chemical Company produces three products. The operating results of the current year are: The firm sets the target price of each product at 150% of the product’s total manufacturing cost. It appears that the firm was able to se

> Franklin Furniture Inc. (FFI) manufactures bedroom furniture in sets (a set includes a dresser, two queen-size beds, and one bedside table) for use in motels and hotels. FFI has three customer groups, which it call the value, quality, and luxury groups.

> Richport Company manufactures products that often require specification changes or modifications to meet customer needs. Consequently, Richport employs a job costing system for its operations. Although the specification changes and modifications are comm

> Brian Canning Co., which sells canned corn, uses an operation costing system. Cans of corn are classified as either sweet or regular, depending on the type of corn used. Both types of corn go through the separating and cleaning operations, but only regul

> Aero Systems is a manufacturer of airplane parts and engines for a variety of military and commercial aircraft. All of Aero System’s government contracts are priced on a cost-plus basis, while nongovernment jobs are not. It has two production departments

> Haughton Company uses a job costing system for its production costs and a predetermined factory overhead rate based on direct labor costs to apply factory overhead to all jobs. During the month of July, the firm processed three jobs: X13, X14, and X15, o

> Decker Screw Manufacturing Company produces special screws made to customer specifications. During June, the following data pertained to these costs: Decker had no beginning Work-in-Process Inventory for June. Of the jobs begun in June, Job 2906 was

> The Meyers CPA firm has the following overhead budget for the year: The firm estimates total direct labor cost for the year to be $1,700,000. The firm uses direct labor cost as the cost driver to apply overhead to clients. During January, the firm work

> Mooresville Corporation manufactures reproductions of eighteenth-century, classical-style furniture. It uses a job costing system that applies factory overhead on the basis of direct labor hours. Budgeted factory overhead for the year was $1,261,500, and

> Peppers Lockdown produces keys for homes and cars. As planning for next year’s production, he decided to implement a High-Low system to forecast future costs. With total production of 2,500,000 keys at a total cost in 2021 of $10,000, total production of

> The following information is for Punta Company for July: a. Factory overhead costs were applied to jobs at the predetermined rate of $42.50 per labor hour. Job S incurred 6,175 labor hours; Job T used 4,275 labor hours. b. Job S was shipped to customers

> Norton Industries, a manufacturer of cable for the heavy construction industry, closes its books and prepares financial statements at the end of each month. The statement of cost of goods sold for April follows: Additional Information âˆ&#15

> Consider the following information for Fair Wind Yachts, Inc., a manufacturer of sailboat rigging, blocks, and cordage. Advertising Expenses ……………â

> Consider the following information for Huntersville Inc. for the fiscal year ended December 31: Depreciation expense—administrative office …………â&#128

> The following data pertain to Babor Company for the year ended December 31: Sales in the current year were $625,000. Required: Prepare a schedule of cost of goods manufactured and an income statement for the current year for Babor Company similar to

> Cornelius Company produces women’s clothing. During the year, the company incurred the following costs: Factory rent ……………â&#128

> Case A: Food Fare is a small chain of restaurants that has developed a loyal customer base by providing fast-food items with more choices (e.g., how the hamburger should be cooked, self-serve toppings) and a more comfortable atmosphere. The menu has a sm

> Assume that you are a consultant for a start-up internet retailer, Bikes.com, which provides a variety of bicycle parts and accessories in a convenient and effective customer service approach. The firm operates from an office building and nearby warehous

> Sheldon Radio manufactures yacht radios, navigational equipment, and depthsounding and related equipment from a small plant near New Bern, North Carolina. One of Sheldon’s most popular products, making up 40 percent of its revenues and 35 percent of its

> The Balanced Scorecard for a small food ingredients company is shown below. The information is based on an actual company, and detailed information about its operations and strategy is confidential. You may assume that the firm’s produc

> Johnson Plastics Inc. produces cases for CDs. The accounting manager has performed a regression analysis to determine future production costs. The regression estimate is $5,000, with an r-squared of .9, a t-value of 2.5 and a standard error of $400. With

> Martial Arts of Cincinnati (MAC) provides Karate training and practice services in 3 locations in Cincinnati, Ohio. MAC is known for its quality of training and has grown rapidly in recent years due to its solid reputation and the growth in the interest

> The trend of economic nationalism (e.g., Brexit) that is affecting many countries around the world promotes keeping manufacturing jobs in the local country. As management accountants, we are concerned about how this trend will affect companies, particul

> The Baldrige National Quality Program was established by the U.S. Congress in 1987 to promote quality awareness and to enhance the competitiveness of U.S. businesses. The program is under the National Institute of Standards and Technology (NIST), a nonre

> Consider the following companies, each of which is your consulting client: 1. Performance Bicycles, a company that supplies bicycles, parts, and bicycling equipment and clothing from its website 2. The Oxford Omni, a downtown hotel that primarily serves

> The following are critical success factors for Dell Inc. • Product manufacturing time • Customer perception of order-taking convenience and accuracy • Revenue growth • Selling expense to sales ratio • Number of new manufacturing processes developed • Ord

> Required: Based on your analysis of Tartan Corporation in Problems 2-51 through 2-54, create a strategy map for the company. Problem 2-51: Tartan Corporation has been manufacturing high-quality home lighting systems for more than 80 years. The company&a

> Required: Develop a balanced scorecard with three or more groups of CSFs for Tartan Corporation based on Problem 2-51. Explain your choice of groups and identify four to five CSFs in each group. Make sure that your CSFs are quantitative and can be measur

> Required: Develop a value chain of six to eight items for Tartan Corporation based on Problem 2 51. Why would the value chain be useful to a firm like Tartan? Problem 2-51: Tartan Corporation has been manufacturing high-quality home lighting systems for

> Required: Develop a SWOT analysis for Tartan Corporation based on Problem 2-51. The analysis should include two to three items in each category: strengths, weaknesses, opportunities, and threats. Problem 2-51: Tartan Corporation has been manufacturing h

> Tartan Corporation has been manufacturing high-quality home lighting systems for more than 80 years. The company’s first products in the 1920s—the classic line—were high-quality floor lamps and table

> Smith Glass Co. produces industrial glass. Smith forecasts data using the High-Low method and has compiled the following data from prior results: Looking solely at the data in the table, which two years should Smith select for the high-low method of an

> Required: Develop a balanced scorecard with three or more groups of CSFs for Fowler’s Farm based on Problem 2-47. Explain your choice of groups and identify four to five CSFs in each group. Make sure that your CSFs are quantitative and can be measured.

> Required: Develop a value chain of six to nine activities for Fowler’s Farm based on Problem 2-47. Problem 2-47: Fowler’s Farm is a 1,000-acre dairy and tobacco farm located in southern Virginia. Jack Fowler, the owner, has been farming since 1982. He i

> Required Develop a SWOT analysis for Fowler’s Farm based on Problem 2-47. The analysis should include two to three items in each category: strengths, weaknesses, opportunities, and threats. Problem 2-47: Fowler’s Farm is a 1,000-acre dairy and tobacco

> Fowler’s Farm is a 1,000-acre dairy and tobacco farm located in southern Virginia. Jack Fowler, the owner, has been farming since 1982. He initially purchased 235 acres and has made the following purchases since then: 300 acres in 1985, 150 acres in 1988

> Consumers, employers, and governments at all levels are very concerned about the rising costs of health care. As a result, health care systems nationwide are experiencing an ongoing demand to improve the efficiency of their operations. The health care in

> The term global supply chain is often used to describe the complex set of interrelated activities and relationships that global companies use to source their needed material, labor, and equipment; to produce the product and service; and to deliver that p

> This chapter introduced the Balanced Scorecard (BSC) and showed applications in organizations that were using the BSC for planning and for strategy implementation. Another important use for the BSC is to evaluate mid-level and higher level managers who a

> The great news for those concerned about climate change and sustainability is that the cost of renewable energy (“green power”) is fast coming down. The result is that many companies, particularly larger companies, are making significant long-term invest

> The trend of economic nationalism (e.g., Brexit and tariffs) that is affecting many countries around the world promotes keeping manufacturing jobs in the domestic country. As management accountants, we are concerned about how this trend will affect compa

> As noted in the chapter, the demand for sustainability reporting has grown, and this growth has created a demand for sustainability assurance, the ability to add verification and credibility to the assurance reports. One organization focused on the verif

> Grant Healthcare produces latex gloves for hospitals. Grant is forecasting costs for future production. The dependent variable is labor expense. List some possible independent variables for a regression analysis of financial data.

> Some economists and financial executives are beginning to consider the possibility of reporting sustainability costs and benefits in a more comprehensive manner. The Nobel prize-winning economist, Joseph Stiglitz, and other economists have suggested that

> This assignment is to complete a reading and to prepare the following discussion questions. The article is authored by Noah P. Barsky and Anthony H. Catanach Jr., “Every Manager Can be and Innovator,” Strategic Finance, August 2011, pp 22-29. The article

> The web site links shown below provide historical information on the exchange rates of currencies used throughout the world. Review the changes in exchange rates for the last few years. http://www.federalreserve.gov/releases/H10/hist/www.xe.com/ucc/ Re

> Required: Consider the comprehensive value chain in Problem 2-67 and complete a value chain for the financing portion of the value chain only. Use a value chain with four to six steps, beginning with the application for a loan by the car buyer and ending

> Generally, the value chains involved in providing a given product or service can be from multiple industries that can be interconnected in complex ways. One example is the auto industry where the primary consumer, the purchaser of an auto, is served by m

> A factory owner in Bangladesh, Tipu Munshi, manufactures clothing for Walmart and other retailers around the world. One of Tipu’s products is a pair of jeans sold to Asda, a Walmart subsidiary in Britain, which sells the jeans for US$22.12. Asda Stores L

> McDonald’s is a global (100 countries) fast-food chain with more than 36,000 restaurants worldwide and global sales of $107 billion in 2018 (includes both company-owned and franchisee sales). McDonald’s is one of the most successful companies, with stock

> Harley-Davidson Inc. (HD) is one of the most recognized brands worldwide. The motorcycle manufacturer has one of the most loyal owner groups of any company. Unfortunately, the firm’s success has come at a price. Harley has a reputation that drives some c

> Comparative advantage is the concept in economics that states that two countries will benefit economically if the relative costs of producing two or more goods differs. The concept of Comparative advantage was developed by the 19th century British econom

> Founded in the UK in 2007, Brew Dog produces a variety of craft beers and has a reputation for provocative marketing. Brew Dog has grown rapidly and in 2017 had 1,500 workers world wide and a $12 million profit. Brew Dog promotes itself by opening Brew D