Journal entries (continuation of Exercise 17-13). Refer to requirement 2 of Exercise 17-13. Required: Prepare summary journal entries for the use of direct materials and incurrence of conversion costs. Also prepare a journal entry to transfer out the cost of goods completed. Show the postings to the Work-in-Process account. Data from Exercise 17-13: A&A Inc. is a manufacturer of digital cameras. It has two departments: assembly and testing. In January 2015, the company incurred $750,000 on direct materials and $798,000 on conversion costs, for a total manufacturing cost of $1,548,000. Required: 1. Assume there was no beginning inventory of any kind on January 1, 2015. During January, 10,000 cameras were placed into production and all 10,000 were fully completed at the end of the month. What is the unit cost of an assembled camera in January 2015? 2. Assume that during February, 10,000 cameras were placed into production. Further assume the same total assembly costs for January are also incurred in February 2015, but only 9,000 cameras are fully completed at the end of February. All direct materials have been added to the remaining 1,000 cameras. However, on average, these remaining 1,000 cameras are only 50% complete as to conversion costs. (a) What are the equivalent units for direct materials and conversion costs and their respective costs per equivalent unit for February? (b) What is the unit cost of an assembled camera in February 2015? 3. Explain the difference in your answers to requirements 1 and 2.
> The variable manufacturing costs per unit of BigScreen Corporation are: Required: 1. Prepare operating statements of comprehensive income for BigScreen Corporation in January, February, and March of 2015 under throughput costing. 2. Contrast the result
> BigScreen Corporation manufactures and sells 50-inch television sets and uses standard costing. Actual data relating to January, February, and March of 2015 are: Required: 1. Present statements of comprehensive income for BigScreen Corporation in Janua
> Assume the same facts as in Exercise 19-24, except now Road Warrior uses only two trigger points, the completion of good finished units of product and the sale of finished goods. Any under- or overallocated conversion costs are written off monthly to Cos
> Young Clothing is a manufacturer of designer suits. The cost of each suit is the sum of three variable costs (direct materials costs, direct manufacturing labour costs, and manufacturing overhead costs) and one fixed-cost category (manufacturing overhead
> Assume the same facts as in Exercise 19-23, except that Road Warrior now uses a backflush costing system with the following two trigger points: ■ Purchase of direct materials. ■ Sale of finished goods. The Inventory Control account will include direct ma
> Road Warrior Corporation assembles handheld computers that have scaled-down capabilities of laptop computers. Each handheld computer takes 6 hours to assemble. Road Warrior uses a JIT production system and a backflush costing system with three trigger po
> The Champion Hardware Company manufactures specialty brass door handles at its Kitchener plant. Champion is considering implementing a JIT production system. The following are the estimated costs and benefits of JIT production: a. Annual additional tooli
> Devin Sports Cars (DSC) has implemented a balanced scorecard to measure and support its just-in-time production system. In the learning and growth category, DSC measures the percentage of employees who are cross-trained to perform a wide variety of produ
> Morgan Company’s annual demand for Model X253 is 10,000 units. Morgan is unsure about the relevant carrying cost per unit per year and the relevant ordering cost per purchase order. This table presents six possible combinations of carry
> Lakeland Company, which produces lawn mowers, purchases 18,000 units of a rotor blade part each year at a cost of $60 per unit. Lakeland requires a 15% annual rate of return on investment. In addition, the relevant carrying cost (for insurance, materials
> The Cloth Centre sells fabrics to a wide range of industrial and consumer users. One of the products it carries is denim cloth, used in the manufacture of jeans and carrying bags. The supplier for the denim cloth pays all incoming freight. No incoming in
> Athletic Textiles (AT) manufactures the soccer jerseys that Fan Base (FB) sells to its customers. AT has recently installed computer software that enables its customers to conduct “one-stop” purchasing using state-of-the-art website technology. FB’s orde
> Fan Base (FB) operates a megastore featuring sports merchandise. It uses an EOQ decision model to make inventory decisions. It is now considering inventory decisions for its soccer jerseys product line. This is a highly popular item. Data for 2015 are:
> A number of terms are listed below: Required: Select the terms from the above list to complete the following sentences. Supply-chain strategy decisions determine __________________ activities. Managing inventory involves the identification of three rel
> A number of terms are listed below: Agility………………………………………………………..………………..value-added cost Capacity…………………………………………………………………………….capacity cost non-value-added cost…………………………..……..denominator-level variance fixed overhead rate variance……………………...producti
> Mendola Corp. has an extensive job-costing facility that uses a variety of metals. Consider each requirement independently. Required: 1. Job 372 uses a particular metal alloy that is not used for any other job. Assume that scrap is material in amount an
> Bright Goods assembles washing machines at its Cambridge plant. In February 2015, 60 tumbler units that cost $44 each from a new supplier were defective and had to be disposed of at zero disposal price. That new supplier is now bankrupt. Bright Goods was
> Bamber Kitchens produces a variety of items in accordance with special job orders from hospitals, plant cafeterias, and university dormitories. An order for 2,500 cases of mixed vegetables costs $6 per case: direct materials, $3; direct manufacturing lab
> Refer to the information in Exercise 18-23. Suppose Chipcity determines standard costs of $200 per equivalent unit for direct materials and $75 per equivalent unit for conversion costs for both beginning work-in-process and work done in the current perio
> Refer to the information in Exercise 18-24. Required: Do Exercise 18-24 using the FIFO method of process costing. Data from Exercise 18-24: Chipcity Inc. is a fast-growing manufacturer of computer chips. Direct materials are added at the start of the
> Chipcity Inc. is a fast-growing manufacturer of computer chips. Direct materials are added at the start of the production process. Conversion costs are added evenly during the process. Some units of this product are spoiled as a result of defects not det
> Arokia Electronics manufactures cell phone models in its Saskatoon plant. Suppose the company provides you with the following information regarding operations for September 2015: Total cell phones manufactured …………………………..10,000 Phones rejected as spoil
> Aaron Inc. is a manufacturer of vents for water heaters. The company uses a process-costing system to account for its work-in-process inventories. When Job 512 was being processed in the machining department, a piece of sheet metal was off-centre in the
> Millstream Company makes wooden toys in its forming department, and it uses the weighted-average method of process costing. All direct materials are added at the beginning of the process, and conversion costs are added evenly during the process. Spoiled
> For the data in Exercise 18-19, use the FIFO method to summarize total costs to account for, calculate the cost per equivalent unit for direct materials and conversion costs, and assign total costs to units completed and transferred out (including normal
> A number of terms are listed below: Required: Select the terms from the above list to complete the following sentences. A full absorption cost refers to all manufacturing costs including all MOH, whereas ___________________ refers to all period or non-
> Refer to the information in Exercise 18-17. Suppose Grey Manufacturing Company uses the FIFO method of process costing instead of the weighted-average method. Required: Compute equivalent units for direct materials and conversion costs. Show physical un
> For the data in Exercise 18-17, summarize total costs to account for, calculate the cost per equivalent unit for direct materials and conversion costs, and assign total costs to units completed and transferred out (including normal spoilage), to abnormal
> Consider the following data for November 2015 from Grey Manufacturing Company, which makes silk pennants and uses a process costing system. All direct materials are added at the beginning of the process, and conversion costs are added evenly during the p
> The following data, in physical units, describe a grinding process for January: Work-in-process, beginning …………………………………..19,000 Started during current period ……………………………..150,000 To account for ……………………………………………………..169,000 Spoiled units …………………………………
> A number of terms are listed below: abnormal spoilage ………………………….inspection point normal spoilage …………………………………………..rework scrap Required: Select the terms from the above list to complete the following sentences. There is no perfect machine,
> Bucky’s Boxes makes boxes for moving. It sells its boxes to major national moving companies. Because of the simple nature of the production process, Bucky’s uses standard costing. The following information for July 201
> For the data in Exercise 17-26, use the FIFO method to summarize total costs to account for, calculate cost per equivalent unit for direct materials and conversion costs, and assign total costs to units completed (and transferred out) and to units in end
> Refer to the information in Exercise 17-26. Suppose the assembly division at Fenton Watches Inc. uses the FIFO method of process costing instead of the weighted-average method. Required: Compute equivalent units for direct materials and conversion costs
> For the data in Exercise 17-26, summarize total costs to account for, calculate cost per equivalent unit for direct materials and conversion costs, and assign total costs to units completed (and transferred out) and to units in ending work in process. D
> Consider the following data for the assembly division of Fenton Watches Inc.: The assembly division uses the weighted-average method of process costing. Required: Compute equivalent units for direct materials and conversion costs. Show physical units
> A number of terms are listed below: target pricing …………………………………target cost per unit value engineering …………………………………value analysis price discrimination ………………………….peak-load pricing life-cycle pricing …………………customer life-cycle pricing invested capital …
> Refer to the information in Exercise 17-24. Suppose that Asaya uses the FIFO method instead of the weighted-average method in all of its departments. The only changes to Exercise 17-24 under the FIFO method are that the total transferred-in costs of begi
> Asaya Clothing Inc. is a manufacturer of winter clothes. It has a knitting department and a finishing department. This exercise focuses on the finishing department. Direct materials are added at the end of the process. Conversion costs are added evenly d
> Refer to the information in Exercise 17-19. Suppose the assembly division uses the standard-costing method of process costing. Suppose further that the assembly division determines standard costs of $700,000 per equivalent unit for direct materials and $
> For the data in Exercise 17-19, use the FIFO method to summarize total costs to account for, and assign these costs to units completed and transferred out, and to units in ending work in process. Data from Exercise 17-19: Consider the following data fo
> Refer to the information in Exercise 17-19. Suppose the assembly division uses the FIFO method of process costing instead of the weighted-average method. Required: 1. Compute equivalent units for direct materials and conversion costs. Show physical unit
> For the data in Exercise 17-19, summarize total costs to account for, and assign these costs to units completed (and transferred out) and to units in ending work in process. Data from Exercise 17-19: Consider the following data for the assembly divisio
> Consider the following data for the assembly division of a satellite manufacturer: The assembly division uses the weighted-average method of process costing. Required: 1. Compute equivalent units for direct materials and conversion costs. Show physica
> Refer to the information in Exercise 17-16. Suppose Bio Doc determines standard costs of $6.60 per equivalent unit for direct materials and $10.40 per equivalent unit for conversion costs for both beginning work in process and work done in the current pe
> Refer to the information in Exercise 17-16. Required: Do Exercise 17-16 using the FIFO method. Note that you first need to calculate the equivalent units of work done in the current period (for direct materials and conversion costs) to complete beginnin
> Bio Doc Corporation is a biotech company that makes a cancer-treatment drug in a single processing department. Direct materials are added at the start of the process. Conversion costs are added evenly during the process. Bio Doc uses the weighted-average
> A number of terms are listed below: equivalent unit (EU)………………………………………………….first-in, first-out (FIFO) weighted-average process-costing method………………standard-costing method Required: Select the terms from the above list to complete the following sentenc
> Roary Chemicals has a mixing department and a refining department. Its process-costing system in the mixing department has two direct materials cost categories (Chemical P and Chemical Q) and one conversion costs pool. The following data pertain to the m
> A&A Inc. is a manufacturer of digital cameras. It has two departments: assembly and testing. In January 2015, the company incurred $750,000 on direct materials and $798,000 on conversion costs, for a total manufacturing cost of $1,548,000. Required: 1.
> Generic Inc. is a distributor of pharmaceutical products. Its ABC system has five activities: Activity Area ………………â€&brvba
> Instant Service (IS) repairs printers and photocopiers for five multisite companies in a tri-city area. IS’s costs consist of the cost of technicians and equipment that are directly traceable to the customer site and a pool of office ov
> SodaKing prepared the budget for 2015 assuming a 10% market share based on total sales in the western region of Canada. The total soft-drinks market was estimated to reach sales of 25 million cases in the region. However, actual total sales volume in the
> SodaKing manufactures and sells three soft drinks: Kola, Limor, and Orlem. Budgeted and actual results for 2015 are as follows: Required: 1. Compute the total sales-volume variance, the total sales-mix variance, and the total sales-quantity variance. (
> The Guangzhou Corporation (GC) sells two brands of wine glasses, Plain and Chic. GC provides the following information for sales in the month of June 2015: Static-budget total contribution margin ……………………………$5,600 Budgeted units to be sold of all glasse
> The Penguins play in the North American Ice Hockey League. The Penguins play in the Downtown Arena (owned and managed by the City of Downtown), which has a capacity of 15,000 seats (5,000 lower-tier seats and 10,000 upper-tier seats). The Downtown Arena
> Lee Shu-yu Inc. produces and sells DVDs to business people and students who are planning extended stays in China. It has been very successful with two DVDs: Beginning Mandarin and Conversational Mandarin. It is introducing a third DVD, Reading Chinese Ch
> What is a linear cost function? Describe three alternative linear cost functions.
> The cities of St. Anne, St. Teresa, and St. Steven are considering the implementation of a new program to handle disposal of hazardous waste to comply with a new, more stringent provincial law. Because of the close proximity of the three cities, a joint
> A number of terms are listed below: Required: Select the terms from the above list to complete the following sentences. To satisfy their customers’ value proposition and benefit from economies of scale, companies often create customi
> Sooke Sawmill Inc. (SSI) purchases logs from independent timber contractors and processes the logs into three types of lumber products: â– Studs for residential buildings (walls, ceilings). â– Decorative pieces (fireplac
> Chemtech Chemicals, a multinational company, has a subsidiary located in a small Eastern European country. The country has only a few environmental protection laws, and even those that exist are not strictly enforced. The subsidiary’s t
> Royston Inc. is a large food processing company. It processes 120,000 kilograms of peanuts in the Peanuts Department at a cost of $160,000 to yield 10,000 kilograms of product A, 60,000 kilograms of product B, and 20,000 kilograms of product C. â&#
> Crisps Inc. is a producer of potato chips. A single production process at Crisps Inc. yields potato chips as the main product and a byproduct that can also be sold as a snack. Both products are fully processed by the splitoff point, and there are no sepa
> The Klein Company operates a simple chemical process to convert a single material into three separate items, referred to here as X, Y, and Z. All three end products are separated simultaneously at a single splitoff point. Products X and Y are ready for s
> Sinclair Oil & Gas, a large energy conglomerate, jointly processes purchased hydrocarbons to generate three nonsaleable intermediate products: ICR8, ING4, and XGE3. These intermediate products are further processed separately to produce Crude Oil, Na
> Instant Foods produces two types of microwavable products—beef-flavoured ramen and shrimp-flavoured ramen. The two products share common inputs such as noodles and spices. The production of ramen results in a waste product referred to a
> Convad Company is one of the world’s leading corn refiners. It produces two joint products, corn syrup and corn starch, using a common production process. In July 2015, Convad reported the following production and selling price informat
> What are the factors that affect the breakeven point under (a) variable costing and (b) absorption costing?
> Differences in operating income between variable and absorption costing are due solely to accounting for fixed costs.” Do you agree? Explain.
> Required:a. Refer to Problem 2-41B. Use an Excel spreadsheet to construct the required financial statements. To complete Requirement b, use formulas where normal arithmetic calculations are made within the financial statements (in particular the statemen
> Refer to Problem 2-39B. Complete the requirements using an Excel spreadsheet. Refer to Chapter 1 problem ATC 1-8 for ideas on how to structure the spreadsheet.Data from Problem 2-39B:The following events pertain to Weaver Cleaning Company: 1. Acquired $1
> The financial statements for Simple Company are reported here using an Excel spreadsheet.Required Re-create the financial statements using your own Excel spreadsheet.a. For each number with an arrow by it, enter a formula in that particular cell address
> Annette’s Accessories had the following stock issued and outstanding at January 1, 2016:On March 5, 2016, Annette’s declared a $100,000 cash dividend to be paid March 31 to shareholders of record on March 21.Required:S
> Required:Complete requirement a of Problem 11-22A using an Excel spreadsheet.Data from Problem 11-22A:Cascade Company was started on January 1, Year 1, when it acquired $60,000 cash from the owners. During Year 2, the company earned cash revenues of $35,
> On January 1, Year 1, Bainbridge Company borrowed $100,000 cash from a bank by issuing a 10-year, 9 percent note. The principal and interest are to be paid by making annual payments in the amount of $15,582. Payments are to be made December 31 of each ye
> At the end of Year 1, the following accounting information is available for Bainbridge and Crist companies:Required:a. Set up the preceding spreadsheet. Complete the balance sheet and income statement. Use Excel formulas for rows that “
> At January 1, Year 2, the accounting records of Ginger’s Boutique had the following balances:During January, Ginger’s Boutique entered into five cash transactions:1. Purchased 120 units of inventory @ $16 each.2. Purch
> Required:Complete ATC 5-5 using an Excel spreadsheet.Data from ATC 5-5:Ruby Tuesday’s, Inc. operated 646 casual dining restaurants across the United States as of May 31, 2016. Signet Jewelers Limited claims to be the worldâ€&
> At the end of Year 1, the following information is available for Short and Wise Companies:Required:a. Set up the spreadsheet shown here. Complete the income statements by using Excel formulas.b. Prepare a common size income statement for each company by
> Set up the following spreadsheet comparing the Vong and Crist companies:Required:For each company, compute gross profit, gross profit percentage, net realizable value, accounts receivable turnover, and average days to collect
> Adams Company started operations on January 1, Year 1. Six months later on June 30, Year 1, the company decided to prepare financial statements. The company’s accountant decided to problem solve for the adjusting journal entries and the
> Tomkung Corporation’s income statements are presented in the following spreadsheet:Required:Construct a spreadsheet to conduct horizontal analysis of the income statements for Year 4 and Year 3.,,,
> Visit the campus bookstore at your university. From what you see happening at the bookstore, try to draw a process map of how the processes at that store serve students, the customers
> Kim Sheridan is a college student. Each Monday through Thursday, she commutes to her classes at York Technical College (YTC). Each semester, Kim pays for on‐campus parking privileges. Before Wednesday of the week prior to each new semester, Kim writes a
> In both Chapters 1 and 2, examples of restaurants and fast food chains were used to describe business processes, as they are deemed to be readily familiar to many students. On the basis of your experiences from using the drive‐through window at a fast f
> On March 31, the following data were accumulated to assist the accountant in preparing the adjusting entries for Potomac Realty:• The supplies account balance on March 31 is $5,620. The supplies on hand on March 31 are $1,290.• The unearned rent account
> Beacons Company maintains and repairs warning lights, such as those found on radio towers and lighthouses. Beacons Company prepared the following end-of-period spreadsheet at December 31, 20Y5, the end of the fiscal year:Instructions:1. Prepare an income
> The comparative balance sheet of Livers Inc. for December 31, 20Y3 and 20Y2, is shown as follows:Additional data obtained from an examination of the accounts in the ledger for 20Y3 are as follows:a. The investments were sold for $175,000 cash.b. Equipmen
> Based on the data in Exercise 4-22, prepare an income statement, statement of stockholders’ equity, and balance sheet for Alert Security Services Co. During the year ended October 31, 20Y3, common stock of $10 was issued.Exercise 4-22:A
> Alert Security Services Co. offers security services to business clients. Complete the following end-of-period spreadsheet for Alert Security Services Co.:,,,
> Financial information related to Ebony Interiors for February and March 2013 is as follows:a. Prepare balance sheets for Ebony Interiors as of February 28 and March 31, 2013.b. Determine the amount of net income for March, assuming that no additional com
> On January 1 of Year 1, Bryson Company obtained a $147,750, four-year, 7% installment note from Campbell Bank. The note requires annual payments of $43,620, beginning on December 31 of Year 1.a. Prepare a table for this installment note, similar to the o
> Alert Security Services Co. offers security services to business clients. The trial balance for Alert Security Services has been prepared on the following end-of-period spreadsheet for the year ended October 31, 20Y3:a. Fees earned, but not yet billed, $
> Imaging Services was organized on March 1, 20Y5. A summary of the revenue and expense transactions for March follows:Fees earned ……………………………………………………………………… $482,000Wages expense …………………………………………………………………… 300,000Rent expense ………………………………………………………………….……
> Determine the due date and the amount of interest due at maturity on the following notes:,,,
> Financial information related to Organic Products Company for the month ended June 30, 2019, is as follows:Net income for June …………………………………………………………….…………. $ 115,000Dividends paid in June …………………………………………………………….…………. 25,000Common stock, June 1, 2019 ……
> Selected data (in thousands) derived from the income statement and balance sheet of National Beverage Corp. for a recent year are as follows:Income statement data:Net income ……………………………………………………………………………………. $49,311Gain on disposal of property …………………………
> Seventy-Two Inc., a developer of radiology equipment, has stock outstanding as follows: 60,000 shares of cumulative preferred 2% stock, $60 par and 300,000 shares of $20 par common. During its first four years of operations, the following amounts were di
> Based upon the data presented in Exercise 2-13, (a) prepare an unadjusted trial balance, listing the accounts in their proper order. (b) Based upon the unadjusted trial balance, determine the net income or net loss.Exercise 2-13:Rocky Mountain Tours Co.
