Question: Michigan Company sells 10,000 units at $

> 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

> The demand for solvent, one of numerous products manufactured by Mac n’ Cheese Industries Inc., has dropped sharply because of recent competition from a similar product. The company’s chemists are currently completing

> Eclectic Ergonomics Company manufactures designer furniture. Eclectic Ergonomics uses a job order cost system. Balances on April 1 from the materials ledger are as follows: The materials purchased during April are summarized from the receiving reports

> Partial balance sheet data for Flat Top Company at December 31, 2016, are as follows: Prepare the Current Assets section of Flat Top Company’s balance sheet at December 31, 2016. Finished goods inventory $ 40,250 Supplies Material

> Which of the following are features of a lean manufacturing system? a. Production pace matches demand b. Centralized work in process inventory locations c. Push scheduling d. Receive raw materials directly to manufacturing cells

> Claxon Company owns a machine with a cost of $305,000 and accumulated depreciation of $65,000 that can be sold for $262,000, less a 5% sales commission. Alternatively, the machine can be leased by Claxon Company for three years for a total of $272,000, a

> The following information is available for Ethtridge Manufacturing Company for the month ending January 31, 2016: Determine Ethtridge’s cost of goods manufactured for the month ended January 31, 2016. Cost of direct materials used

> Rextacular Manufacturing Company reported the following materials data for the month ending June 30, 2016: Determine the cost of direct materials used in production by Rextacular during the month ended June 30, 2016. Materials purchased $828,000 Ma

> The increases to Work in Process—Roasting Department for Highlands Coffee Company for May 2016 as well as information concerning production are as follows: Prepare a cost of production report, using the average cost method. Work i

> A summary of the time tickets for the current month follows: Journalize the entry to record the factory labor costs. Job No. Amount Job No. Amount 100 $ 3,860 Indirect $ 6,340 101 4,300 24,500 111 7,120 7,400 32,000 104 115 108 18,600 117

> Digital River Inc. provides cable TV and Internet service to the local community. The activities and activity costs of Digital Light are identified as follows: Prepare a Pareto chart of these activities. Activities . Activity Cost Billing error cor

> For the current year ended March 31, Benatar Company expects fixed costs of $1,250,000, a unit variable cost of $140, and a unit selling price of $100. a. Compute the anticipated break-even sales (units). b. Compute the sales (units) required to realize

> Silicon Solutions Inc. manufactures RAM memory chips for personal computers. An activity analysis was conducted, and the following activity costs were identified with the manufacture and sale of memory chips: Prepare a Pareto chart of these activities.

> The chief cost accountant for Fizzy Fruit Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning April 1 would be $147,000, and total direct labor costs would be $105,000. During April, th

> Ever-Brite Lighting Inc. manufactures lighting fixtures, using lean manufacturing methods. Style BB-01 has a materials cost per unit of $45. The budgeted conversion cost for the year is $193,200 for 2,100 production hours. A unit of Style BB-01 requires

> Income statement information for Axiom Corporation follows: Prepare a vertical analysis of the income statement for Axiom Corporation. Sales . $725,000 Cost of goods sold 391,500 Gross profit. 333:500

> The Cutting Department of Karachi Carpet Company provides the following data for January 2016. Assume that all materials are added at the beginning of the process. a. Prepare a cost of production report for the Cutting Department. b. Compute and evalua

> Right Now Video Inc. uses a lean manufacturing strategy to manufacture DVR (digital video recorder) players. The company manufactures DVR players through a single product cell. The budgeted conversion cost for the year is $420,000 for 2,000 production ho

> Currently, the unit selling price of a product is $160, the unit variable cost is $120, and the total fixed costs are $725,000. A proposal is being evaluated to increase the unit selling price to $170. a. Compute the current break-even sales (units). b.

> Lilac Skin Care Company consists of two departments, Blending and Filling. The Filling Department received 45,000 ounces from the Blending Department. During the period, the Filling Department completed 42,800 ounces, including 4,000 ounces of work in pr

> Two items are omitted from each of the following three lists of cost of goods manufactured statement data. Determine the amounts of the missing items, identifying them by letter. $ 22,400 156,800 $ 50,400 Work in process inventory, August 1 Total ma

> Anheuser-Busch InBev Companies, Inc., reported the following operating information for a recent year (in millions): In addition, assume that Anheuser-Busch InBev sold 320 million barrels of beer during the year. Assume that variable costs were 70% of t

> Based on the data in Exercise 23-10 assume that management has established a 10% minimum acceptable rate of return for invested assets. Exercise 23-10: The income from operations and the amount of invested assets in each division of Magnetic Zero Indus

> The income from operations and the amount of invested assets in each division of Magnetic Zero Industries are as follows: a. Compute the rate of return on investment for each division. b. Which division is the most profitable per dollar invested? I

> a. Segar Company budgets sales of $3,200,000, fixed costs of $700,000, and variable costs of $2,240,000. What is the contribution margin ratio for Segar Company? b. If the contribution margin ratio for Domino Company is 35%, sales were $2,100,000, and fi

> Dash Industries Inc. manufactures recreational vehicles. Dash uses a job order cost system. The time tickets from April jobs are summarized as follows: Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $25 per direct

> The following data are accumulated by Dillon Company in evaluating the purchase of $39,600 of equipment, having a four-year useful life: a. Assuming that the desired rate of return is 15%, determine the net present value for the proposal. Use the table

> A project has estimated annual net cash flows of $118,600. It is estimated to cost $616,720. Determine the cash payback period. Round to one decimal place.

> Quigley Inc. manufactures memory chips for electronic toys within a relevant range of 200,000 to 600,000 memory chips per year. Within this range, the following partially completed manufacturing cost schedule has been prepared: Complete the cost schedu

> Fidelity Bancorp Inc. is evaluating two capital investment proposals for a drive-up ATM kiosk, each requiring an investment of $280,000 and each with an eight-year life and expected total net cash flows of $448,000. Location 1 is expected to provide equa

> On December 31, the end of the first year of operations, Frankenreiter Inc. manufactured 25,600 units and sold 24,000 units. The following income statement was prepared, based on the variable costing concept: Determine the unit cost of goods manufactur

> The following information is available for the first month of operations of Kellman Inc., a manufacturer of art and craft items: Using this information, determine the following missing amounts: a. Cost of goods sold b. Direct materials cost c. Direct l

> During April, Almerinda Company accumulated 20,000 hours of direct labor costs on Job 50 and 24,000 hours on Job 51. The total direct labor was incurred at a rate of $20.00 per direct labor hour for Job 50 and $22.00 per direct labor hour for Job 51. Jou

> Tiny Biggs Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Factory 1 and on the basis of direct labor hours in Factory 2. Estimated factory overhead costs, direct labor hours, and machine hour

> The following data are accumulated by Chem Lab Inc. in evaluating two competing capital investment proposals: Determine the expected average rate of return for each proposal. Testing Equlpment $86,000 Vehicle Amount of investment $30,000 8 years Us

> For a manufacturer, what is the description of the account that is comparable to a merchandising business’s cost of merchandise sold?

> H. Jeckel Manufacturing Company allows employees to purchase, at cost, manufacturing materials, such as metal and lumber, for personal use. To purchase materials for personal use, an employee must complete a materials requisition form, which must then be

> Rambotix Company has two divisions, the Semiconductor Division and the X-ray Division. The X-ray Division may purchase semiconductors from the Semiconductor Division or from outside suppliers. The Semiconductor Division sells semiconductor products both

> The centralized employee travel department of Camtro Company has expenses of $528,000. The department has serviced a total of 6,000 travel reservations for the period. The Southeast Division has made 2,400 reservations during the period, and the Pacific

> The controller of Boom Box Sounds Inc. prepared the following product profitability report for management, using activity-based costing methods for allocating both the factory overhead and the marketing expenses. As such, the controller has confidence in

> Wells Fargo Insurance Services (WFIS) is an insurance brokerage company that classified Insurance products as either “easy” or “difficult.” Easy and difficult products were defined a

> Beachside Beverages Company manufactures soft drinks. Information about two products is as follows: It is known that both products have the same direct materials and direct labor costs per case. Beachside Beverages allocates factory overhead to product

> In one group, find a local business, such as a copy shop, that rents time on desktop computers for an hourly rate. Determine the hourly rate. In the other group, determine the price of a mid-range desktop computer at www.dell.com. Combine this informatio

> Municipal governments are discovering that you can control only what you measure. As a result, many municipal governments are introducing nonfinancial performance measures to help improve municipal services. In a group, use the Google search engine to pe

> The Norsk Division of Gridiron Concepts Inc. has been experiencing revenue and profit growth during the years 2014–2016. The divisional income statements follow: Assume that there are no charges from service departments. The vice pres

> a. Based upon the data in Exercise 18.7 determine the following: Exercise 18.7: The following information concerns production in the Baking Department for August. All direct materials are placed in process at the beginning of production. 1. Direct ma

> Product TS-20 has revenue of $102,000, variable cost of goods sold of $52,500, variable selling expenses of $21,500, and fixed costs of $35,000, creating a loss from operations of$7,000. Prepare a differential analysis as of September 12 to determine if

> Salvo Inc., a specialized equipment manufacturer, uses a job order costing system. The overhead is allocated to jobs on the basis of direct labor hours. The overhead rate is now $1,500 per direct labor hour. The design engineer thinks that this is illogi

> BendOR, Inc. manufactures control panels for the electronics industry and has just completed its first year of operations. The following discussion took place between the controller, Gordon Merrick, and the company president, Matt McCray: Matt: I’ve been

> Lo-bed Company produces a product that requires four standard hours per unit at a standard hourly rate of $28.00 per hour. If 4,000 units required 16,750 hours at an hourly rate of $28.40 per hour, what is the direct labor (a) rate variance, (b) time var

> In a group, find the home page of the state in which you presently live. The home page will be of the form www.statename.gov. For example, the state of Tennessee would be found at www.tennessee.gov. At the home page site, search for annual budget informa

> Jellnick Equipment Inc. manufactures and sells kitchen cooking products throughout the state. The company employs four salespersons. The following contribution margin by salesperson analysis was prepared: 1. Calculate the manufacturing margin as a perc

> Dash Riprock is a cost analyst with Safe Insurance Company. Safe is applying standards to its claims payment operation. Claims payment is a repetitive operation that could be evaluated with standards. Dash used time and motion studies to identify an idea

> Trans Sport Company sells sporting goods to retailers in three different states—Florida, Georgia, and Tennessee. The following profit analysis by state was prepared by the company: The following fixed costs have also been provided:

> The controller of the plant of Minsky Company prepared a graph of the unit costs from the job cost reports for Product One. The graph appeared as follows: How would you interpret this information? What further information would you request? $40 $35