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 puck. The company's sales have been increasing over the past 10 years. The hockey sticks division has recently implemented several advanced manufacturing techniques. Robot arms hold the hockey sticks in place while the glue dries, and machine vision systems check for defects. The engineering and design team uses computerized drafting and testing of new products. The following managers work in the hockey sticks division: Hayley Geagea, sales manager (supervises all sales representatives) Luc Lemieux, technical specialist (supervises computer programmers) Gary Richardson, cost accounting manager (supervises cost accountants) Manny Cordoza, production supervisor (supervises all manufacturing employees) Patrick Dumoulin, engineer (supervises all new-product design teams) Instructions a. What are the primary information needs of each manager? b. Which, if any, financial accounting report(s) is each likely to use? c. Name one special-purpose management accounting report that could be designed for each manager. Include the name of the report, the information it would contain, and how frequently it should be issued.
> Shady Lady sells window coverings to both commercial and residential customers. The following information relates to its budgeted operations for the current year: Assign overhead using traditional costing and ABC. The controller, Susan Chan, is concern
> Alonzo Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to each product line, the controller, YuYu Ortega, has developed the following information: Assign overhead using traditional costing and AB
> Mega Electronix sells television sets and Blu-ray DVD players. The business is divided into two divisions along product lines. A variable cost income statement for a recent quarter's activity is presented below: Determine the break-even point in dollars
> International Fabrics has budgeted overhead costs of $955,000. It has allocated overhead on a plant-wide basis to its two products (wool and cotton) using direct labour hours, which are estimated to be 477,500 for the current year. The company has decide
> Khan Inc. has conducted the following analysis related to its product lines using a traditional costing system (volume-based) and an activity-based costing system. Both the traditional and activity-based costing systems include direct materials and direc
> Elle Inc. makes two types of handbags: standard and custom. The controller has decided to use a plant-wide overhead rate based on direct labour costs. The president has heard of activity-based costing and wants to see how the results would differ if this
> Ready Ride is a trucking company. It provides local, short-haul, and long-haul services. It has developed the following three cost pools. Apply ABC to a service company. Instructions a. Calculate the activity-based overhead rates for each pool. b. Dete
> Good Harvest Company manufactures four lines of garden tools. As a result of an activity analysis, the accounting department has identified eight activity cost pools. Each of the product lines is produced in large batches, with the whole plant devoted to
> At December 31, balances in Manufacturing Overhead are Diaz Company—debit $1,200, Garcia Company—credit $900. Prepare the adjusting entry for each company at December 31, assuming the adjustment is made to cost of goods sold. Prepare adjusting entries fo
> Weber Industries has three activity cost pools and two products. It estimates production of 3,000 units of Product BC113 and 1,400 of Product AD908. Having identified its activity cost pools and the cost drivers for each pool, Weber accumulated the follo
> Tool Time Inc. operates 20 injection moulding machines in the production of tool boxes of four different sizes, named the Apprentice, the Handyman, the Journeyman, and the Professional. Classify each of the following costs as unit-level, batch-level, pro
> Infotrac Inc. sells a high-speed retrieval system for information. It provides the following information for the year. Identify differences between costing systems. Overhead is applied on the basis of machine hours. a. Calculate the predetermined overh
> Presented below are the CVP income statements for Finch Company and Sparrow Company. They are in the same industry, with the same operating incomes, but different cost structures. Calculate break-even point with change in operating leverage. Calculate
> Veejay Golf Accessories sells golf shoes, gloves, and a laser guided range-finder that measures distance. Shown below are unit cost and sales data: Calculate the break-even point in units for a company with multiple products. Fixed costs are $660,000.
> Sanjay's Shingle Corporation is considering the purchase of a new automated shingle-cutting machine. The new machine will reduce variable labour costs but will increase depreciation expense. The contribution margin is expected to increase from $160,000 t
> The degrees of operating leverage for Delta Corp. and Epsilon Co. are 1.4 and 5.6, respectively. Both have operating incomes of $50,000. Determine their respective contribution margins. Determine contribution margin.
> NYX Inc. sells its product for $24 per unit and variable costs are $14 per unit. Its fixed costs are $130,000. Calculate the required sales in units to achieve its target operating income of 10% of total costs. Calculate required sales for target operati
> Part 1 The vice-president of sales and marketing, Madison Tremblay, is trying to plan for the coming year in terms of production needs to meet the forecasted sales. The board of directors is very supportive of any initiatives that will lead to increased
> Rapid Auto has 200 auto-maintenance service outlets nationwide. It provides two main lines of service: oil changes and brake repair. Oil changes and related services represent 70% of its sales and provide a contribution margin ratio of 20%. Brake repair
> Grass King manufactures lawn mowers, weed trimmers, and chainsaws. Grass King has fixed costs of $4.2 million. Its sales mix and contribution margin per unit are as follows: Calculate the break-even point in units for a company with more than one product
> An investment banker is analyzing two companies that specialize in the production and sale of candied apples. Old-Fashioned Apples uses a labour-intensive approach, and Mech-Apple uses a mechanized system. Variable costing income statements for the two c
> A firm sells its product for $30 per unit. Its direct material costs are $6 per unit and direct labour costs are $4. Fixed manufacturing overhead costs are $40,000 and variable overhead costs are $8 per unit. Calculate the required sales in dollars to br
> Volmar Company had sales in 2020 of $1,250,000 on 50,000 units. Variable costs totalled $600,000, and fixed costs totalled $500,000. Prepare a CVP income statement before and after changes in the business environment. A new raw material is available tha
> Determine the missing amounts: Determine missing amounts for contribution margin. Unit Selling Unit Variable Contribution Margin Contribution Price Margin Ratio (b) Costs per Unit 1. $640 $352 (a) 2. $300 (c) $ 93 (d) 3. (e) (f) $325 25%
> Current Designs manufactures two different types of kayaks: rotomoulded kayaks and composite kayaks. The following information is available for each product line. The company's fixed costs are $820,000. An analysis of the sales mix identifies that roto
> Friendly Airways Inc., a small two-plane passenger airline, has asked for your assistance in some basic analysis of its operations. The planes seat 10 passengers each, and they fly commuters from Friendly's base airport to the major city in the province,
> Moran Company reports the following operating results for the month of August: sales $310,000 (units 5,000); variable costs $217,000; and fixed costs $70,000. Management is considering the following independent courses of action to increase operating inc
> Johansen Company had $210,000 of operating income in 2020, when the selling price per unit was $150, the variable costs per unit were $90, and the fixed costs were $570,000. Management expects per-unit data and total fixed costs to remain the same in 202
> 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
> 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
> After deciding on a mortgage, one of the most difficult decisions for new homeowners is when and how to upgrade their home heating system. There are many different home heating fuels and types of equipment to consider. The skills you have learned in this
> 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
