Question: On the first day of the fiscal

> Crosswinds Hospital plans to use activity-based costing to assign hospital indirect costs to the care of patients. The hospital has identified the following activities and activity rates for the hospital indirect costs: Activity…&aci

> Schneider Electric manufactures power distribution equipment for commercial customers, such as hospitals and manufacturers. Activity-based costing was used to determine customer profitability. Customer service activities were assigned to individual custo

> Four Finger Appliance Company manufactures small kitchen appliances. The product line consists of blenders and toaster ovens. Four Finger Appliance presently uses the multiple production department factory overhead rate method. The factory overhead is as

> Digital Storage Concept Inc. is considering a change to activity-based product costing. The company produces two products, cell phones and tablet PCs, in a single production department. The production department is estimated to require 3,750 direct labor

> Garfield Inc. manufactures entry and dining room lighting fixtures. Five activities are used in manufacturing the fixtures. These activities and their associated budgeted activity costs and activity bases are as follows: Corporate records were obtained

> Atlas Enterprises Inc. manufactures elliptical exercise machines and treadmills. The products are produced in its Fabrication and Assembly production departments. In addition to production activities, several other activities are required to produce the

> Product pricing and product costs vary significantly depending on company and industry. Three such companies, their industries, and an associated product are: In teams of three, assign each person in your group to one of the companies listed above. Go

> In groups of two to four people, visit a sit-down restaurant and do a lead time study. If more than one group chooses to visit the same restaurant, choose different times for your visits. Note the time when you walk in the door of the restaurant and the

> Kellogg Company manufactures cold cereal products, such as Frosted Flakes. Assume that the inventory in process on March 1 for the Packing Department included 1,200 pounds of cereal in the packing machine hopper (enough for 800 24-oz. boxes) and 800 empt

> A. Based upon the data in Exercise 17-7, determine the following for March: 1. Direct materials cost per equivalent unit 2. Conversion cost per equivalent unit 3. Cost of the beginning work in process completed during March 4. Cost of units started and c

> The following information concerns production in the Baking Department for March. All direct materials are placed in process at the beginning of production. A. Determine the number of units in work in process inventory at March 31. B. Determine the equ

> Units of production data for the two departments of Pacific Cable and Wire Company for November of the current fiscal year are as follows: If all direct materials are placed in process at the beginning of production, determine the direct materials and

> The Converting Department of Hopkinsville Company had 1,200 units in work in process at the beginning of the period, which were 25% complete. During the period, 16,000 units were completed and transferred to the Packing Department. There were 2,000 units

> The cost accountant for Kenner Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning May 1 would be $3,000,000, and total direct labor costs would be $2,400,000. During May, the actual di

> Domino Foods, Inc. , manufactures a sugar product by a continuous process, involving three production departments—Refining, Sifting, and Packing. Assume that records indicate that direct materials, direct labor, and applied factory overhead for the first

> The following are some quotes provided by a number of managers at Hawkeye Machining Company regarding the company’s planned move toward a lean manufacturing system: Director of Sales: I’m afraid we’ll miss some sales if we don’t keep a large stock of ite

> Madison Electric Company uses a fossil fuel (coal) plant for generating electricity. The facility can generate 900 megawatts (million watts) per hour. The plant operates 600 hours during March. Electricity is used as it is generated; thus, there are no i

> Flcoa Inc. is the world’s largest producer of aluminum products. One product that Alcoa manufactures is aluminum sheet products for the aerospace industry. The entire output of the Smelting Department is transferred to the Rolling Department. Part of the

> Danielle Hastings was recently hired as a cost analyst by CareNet Medical Supplies Inc. One of Danielle’s first assignments was to perform a net present value analysis for a new warehouse. Danielle performed the analysis and calculated a present value in

> Lighthouse Paper Company manufactures newsprint. The product is manufactured in two departments, Papermaking and Converting. Pulp is first placed into a vessel at the beginning of papermaking production. The following information concerns production in t

> AccuBlade Castings Inc. casts blades for turbine engines. Within the Casting Department, alloy is first melted in a crucible, then poured into molds to produce the castings. On May 1, there were 230 pounds of alloy in process, which were 60% complete as

> The Cutting Department of Karachi Carpet Company provides the following data for January. 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 evaluate th

> The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with information concerning production, are as follows: All direct materials are placed in process at the beginning of production.

> Based on the data in Exercise 17-14, determine the following: A. Cost of beginning work in process inventory completed in November B. Cost of units transferred to the next department during November C. Cost of ending work in process inventory on November

> The following information concerns production in the Forging Department for November. All direct materials are placed into the process at the beginning of production, and conversion costs are incurred evenly throughout the process. The beginning inventor

> Napco Refining Company processes gasoline. On June 1 of the current year, 6,400 units were 3⁄⁄5 completed in the Blending Department. During June, 55,000 units entered the Blending Department from the Refining Departme

> A. Based on the data in Exercise 17-11, determine the following: 1. Cost of beginning work in process inventory completed this period 2. Cost of units transferred to finished goods during the period 3. Cost of ending work in process inventory 4. Cost per

> The charges to Work in Process—Assembly Department for a period, together with information concerning production, are as follows. All direct materials are placed in process at the beginning of production. Determine the following: A. T

> Georgia Products Inc. completed and transferred 89,000 particle board units of production from the Pressing Department. There was no beginning inventory in process in the department. The ending in-process inventory was 2,400 units, which were 3⁄ 5 comple

> The Southern Division manager of Texcaliber Inc. is growing concerned that the division will not be able to meet its current period income objectives. The division uses absorption costing for internal profit reporting and had an appropriate level of inve

> The Hershey Company manufactures chocolate confectionery products. The three largest raw materials are cocoa, sugar, and dehydrated milk. These raw materials first go into the Blending Department. The blended product is then sent to the Molding Departmen

> Sundance Solar 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

> Townsend Industries Inc. manufactures recreational vehicles. Townsend uses a job order cost system. The time tickets from November jobs are summarized as follows: Job 11-101…………………………………………………$6,240 Job 11-102…………………………………………………..9,000 Job 11-103…………………

> The weekly time tickets indicate the following distribution of labor hours for three direct labor employees: The direct labor rate earned per hour by the three employees is as follows: Tom Couro……â€&b

> 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 $ 3,500 Indirect $ 9,100 101 6,650 111 8,620 104 21,900 115 2,760 108 14,440 117 18,550

> GenX Furnishings Company manufactures designer furniture. GenX Furnishings uses a job order cost system. Balances on June 1 from the materials ledger are as follows: Fabric………â€&brvb

> Materials issued for the current month are as follows: Journalize the entry to record the issuance of materials. Requisition No. Material Job No. Amount 201 Aluminum 500 $88,700 202 Plastic 503 27,600 203 Rubber 504 3,650 204 Glue Indirect 2,250 20

> An incomplete subsidiary ledger of materials inventory for May is as follows: A. Complete the materials issuances and balances for the materials subsidiary ledger under FIFO. B. Determine the materials inventory balance at the end of May. C. Journalize

> On the basis of the following data, (A) journalize the adjusting entries at December 31, the end of the current fiscal year, and (B) journalize the reversing entries on January 1, the first day of the following year: 1. Sales salaries are uniformly $11,7

> Scott Company had sales of $12,350,000 and related cost of goods sold of $7,500,000. Scott provides customers a refund for any returned or damaged merchandise. At the end of the year, Scott estimates that customers will request refunds for 0.8% of sales

> In teams, visit the Web site of a company that uses the balanced scorecard to evaluate the company’s performance. Identify the performance measures used by the company on its balanced scorecard. For each measure, identify whether the measure best fits th

> Anson Industries, Inc. reported the following information on its 20Y1 income statement: Sales ............................................................................ $4,000,000 Cost of goods sold ....................................................

> Based on the following data, estimate the cost of the ending inventory: Sales………………………………………………………..$9,250,000 Estimated gross profit rate…………………………………..36% Beginning inventory…………………………………….$ 180,000 Purchases (net)…………………………………………..5,945,000 Merchandis

> Journalize the entries to record the following: A. Check No. 12-375 is issued to establish a petty cash fund of $750. B. The amount of cash in the petty cash fund is now $80. Check No. 12-476 is issued to replenish the fund, based on the following summar

> On the basis of the following data, estimate the cost of the inventory at June 30 by the retail method: Cost Retail $ 165,000 $ 275,000 3,800,000 June 1 Inventory Purchases (net) June 1-30 2,361,500 June 1-30 Sales 3,550,000

> The table that follows shows the stock price, earnings per share, and dividends per share for three companies for a recent year: A. Determine the price-earnings ratio and dividend yield for the three companies. (Round ratios and percentages to one deci

> The series of five transactions, A through E, recorded in the following T accounts were related to a sale to a customer on account and the receipt of the amount owed. Briefly describe each transaction. Cash Notes Recelvable 76,500 75,000 D E 75,000

> On January 1 of 20Y2, Hebron Company issued a $175,000, five-year, 8% installment note to Ventsam Bank. The note requires annual payments of $43,830, beginning on December 31 of 20Y2. Journalize the entries to record the following: 20Y2 Jan. 1. Issued th

> The following information is available for the first year of operations of Engle Inc., a manufacturer of fabricating equipment: Sales…………………………………………………………..$7,270,000 Gross profit…………………………………………………….1,450,000 Indirect labor……………………………………………………330,000 I

> The following information is available for the first month of operations of Bahadir Company, a manufacturer of mechanical pencils: Sales………………………………………………………………………..$792,000 Gross profit………………………………………………………………..462,000 Cost of goods manufactured……………………

> Bon Jager Inc. manufactures and sells medical devices used in cardiovascular surgery. The sales team consists of two salespeople, Dean and Martin. A contribution margin report by salesperson was prepared as follows: Write a brief memo to Anna Berenson,

> The following information is available for Bandera Manufacturing Company for the month ending January 31: Cost of goods manufactured……………………………………$4,490,000 Selling expenses………………………………………………………….530,000 Administrative expenses………………………………………………340,000

> The Fly Company provides advertising services for clients across the nation. The Fly Company is presently working on four projects, each for a different client. The Fly Company accumulates costs for each account (client) on the basis of both direct costs

> The law firm of Furlan and Benson accumulates costs associated with individual cases, using a job order cost system. The following transactions occurred during July: July 3. Charged 175 hours of professional (lawyer) time to the Obsidian Co. breech of co

> The following events took place for Chi-Lite Inc. during June, the first month of operations as a producer of road bikes: • Purchased $400,000 of materials. • Used $343,750 of direct materials in production. • Incurred $295,000 of direct labor wages. • A

> Old School Publishing Inc. began printing operations on January 1. Jobs 301 and 302 were completed during the month, and all costs applicable to them were recorded on the related cost sheets. Jobs 303 and 304 are still in process at the end of the month,

> The following account appears in the ledger prior to recognizing the jobs completed in August: Work in Process Balance, August 1……………â€&brvbar

> Poehling Medical Center has a single operating room that is used by local physicians to perform surgical procedures. The cost of using the operating room is accumulated by each patient procedure and includes the direct materials costs (drugs and medical

> Spring Street Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows: Engine parts……………………………………………………….$ 875,000 Shop direct labor……………………………………

> Five selected transactions for the current month are indicated by letters in the following T accounts in a job order cost accounting system: Describe each of the five transactions. Materials Work in Process (A) (A) |(D) (В) (C) Wages Payable Finish

> An analysis of the general ledger accounts indicates that delivery equipment, which cost $80,000 and on which accumulated depreciation totaled $36,000 on the date of sale, was sold for $37,200 during the year. Using this information, indicate the items t

> Many city and county governments realize that an entity can only control what it measures. As a result, many municipal governments are introducing nonfinancial performance measures to help improve municipal services. In a group, use the Google search eng

> Four types of eco-efficiency measures are identified below. Match the following descriptions to the proper eco-efficiency measures: 1. Energy Efficiency 2. Fuel Efficiency 3. Material Use Efficiency 4. Waste Efficiency A. Cost savings from recycling and reusing

> At the beginning of the current year, two bond issues (Simmons Industries 7%, 20-year bonds and Hunter Corporation 8%, 10-year bonds) were outstanding. During the year, the Simmons Industries bonds were redeemed and a significant loss on the redemption o

> ia Breen Corp. produces and sells wind-energy-driven engines. To finance its operations, Mia Breen issued $18,000,000 of 20-year, 4% callable bonds on May 1, Year 1, at their face amount, with interest payable on May 1 and November 1. The fiscal year of

> Hoover Corp., a wholesaler of music equipment, issued $30,000,000 of 20-year, 8% callable bonds on March 1, Year 1, at their face amount, with interest payable on March 1 and September 1. The fiscal year of the company is the calendar year. Journalize th

> A business issued a 120-day, 5% note for $90,000 to a creditor on account. Journalize the entries to record (A) the issuance of the note and (B) the payment of the note at maturity, including interest.

> The Stationery Company purchased merchandise on account from a supplier for $28,900, terms 1/10, n/30. The Stationery Company returned $6,100 of the merchandise and received full credit. A. What is the amount of cash required for the payment? B. Under a

> State the effect (cash receipt or cash payment and amount) of each of the following transactions, considered individually, on cash flows: A. Retired $400,000 of bonds, on which there was $3,000 of unamortized discount, for $411,000. B. Sold 20,000 shares

> Cost data for Sandusky Manufacturing Company for the month ended January 31 are as follows: A. Prepare a cost of goods manufactured statement for January. B. Determine the cost of goods sold for January January 31 $145,500 Inventories January 1 $18

> On the basis of the following data, determine the value of the inventory at the lower of cost or market. Assemble the data in the form illustrated in Exhibit 9. Exhibit 9: Inventory Quantity Cost per Unit Market Value per Unit (Net Realizable Valu

> The following information is available for Ethtridge Manufacturing Company for the month ending July 31: Cost of direct materials used in production……………….$1,150,000 Direct labor………………………………………………………………..966,000 Work in process inventory, July 1……………………

> In teams, find the home page of a state that interests you. The home page will be of the form www.statename.gov. For example, the state of Tennessee can be found at www.tennessee.gov. At the home page site, search for annual budget information. 1. What a

> Widmer Company had gross wages of $240,000 during the week ended June 17. The amount of wages subject to social security tax was $240,000, while the amount of wages subject to federal and state unemployment taxes was $35,000. Tax rates are as follows: S

> The actual cash received from cash sales was $61,355, and the amount indicated by the cash register total was $61,380. Journalize the entry to record the cash receipts and cash sales.

> Assume the same data as in Exercise 11-10, except that the current interest rate is 12%. Will the present value of your winnings using an interest rate of 12% be more than the present value of your winnings using an interest rate of 5%? Why or why not?

> On January 1 you win $50,000,000 in the state lottery. The $50,000,000 prize will be paid in equal installments of $6,250,000 over eight years. The payments will be made on December 31 of each year, beginning on December 31 of this year. If the current i

> United States Steel Corporation’s 7.5% bonds due in 2022 were reported as selling for 104.5. Were the bonds selling at a premium or at a discount? Why is United States Steel able to sell its bonds at this price?

> An employee earns $44 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. If the employee worked 51 hours during the week, determine the employee’s (A) gross pay and (B) net pay for the week. Assume that the social security tax

> In a recent year’s financial statements, Procter & Gamble showed an unfunded pension liability of $5,955 million and a periodic pension cost of $432 million. Explain the meaning of the $5,955 million unfunded pension liability and the $432 million periodi

> Rainbow Services Co. offers its services to individuals desiring to improve their personal images. After the accounts have been adjusted at August 31, the end of the fiscal year, the following balances were taken from the ledger of Rainbow Services: Jo

> Three major segments of the transportation industry are motor carriers, such as Y R C Worldwide; railroads, such as Union Pacific; and transportation logistics services, such as C .H. Robinson Worldwide, Inc. Recent financial statement information for th

> Hasbro, Inc. and Mattel, Inc. , are the two largest toy companies in North America. Condensed liabilities and stockholders’ equity from a recent balance sheet are shown for each company as follows (in thousands): The income from opera

> 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

> Based on the following data, estimate the cost of the ending inventory: Sales………………………………………………………..$1,450,000 Estimated gross profit rate…………………………………..42% Beginning inventory…………………………………….$ 100,000 Purchases (net)……………………………………………..860,000 Merchandise

> A business using the retail method of inventory costing determines that inventory at retail is $775,000. If the ratio of cost to retail price is 66%, what is the amount of inventory to be reported on the financial statements?

> Based on the data in Exercise 6-15 and assuming that cost was determined by the FIFO method, show how the inventory would appear on the balance sheet. Data from Exercise 6-15: On the basis of the following data, determine the value of the inventory at

> From the list that follows, identify the accounts that should be closed to Income Summary at the end of the fiscal year: A. Accounts Payable B. Accumulated Depreciation—Equipment C. Depreciation Expense—Equipment D. Equipment E. Common Stock F. Dividends

> K. Mello Company has three employees—a consultant, a computer programmer, and an administrator. The following payroll information is available for each employee: For the current pay period, the computer programmer worked 44 hours and

> MGM Resorts International owns and operates hotels and casinos including the MGM Grand and the Bellagio in Las Vegas, Nevada. As of a recent year, MGM reported accounts receivable of $562,947,000 and allowance for doubtful accounts of $89,602,000. Johnso

> Fed Ex Corporation had the following revenue and expense account balances (in millions) for a recent year ending May 31: A. Prepare an income statement. B. Compare your income statement with the income statement that is available at FedExâ€&

> At the end of the current year, the accounts receivable account has a debit balance of $2,950,000 and sales for the year total $27,400,000. Determine the amount of the adjusting entry to provide for doubtful accounts under each of the following assumptio

> A business issued a 60-day note for $75,000 to a creditor on account. The note was discounted at 7%. Journalize the entries to record (A) the issuance of the note and (B) the payment of the note at maturity.

> Indicate whether each of the following types of transactions will either (A) increase stockholders’ equity or (B) decrease stockholders’ equity: 1. Expenses 2. issuing common stock in exchange for cash 3. dividends 4. revenues

> Sun Airlines is a commercial airline that targets business and non-business travelers. In recent months, the airline has been unprofitable. The company has break-even sales volume of 75% of capacity, which is significantly higher than the industry average

> Identify each of the following as (A) a current asset or (B) property, plant, and equipment: 1. Accounts Receivable 2. Building 3. Cash 4. Equipment 5. Prepaid Insurance 6. Supplies

> Bon Nebo Co. sold 25,000 annual subscriptions of Bjorn for $85 during December 20Y5. These new subscribers will receive monthly issues, beginning in January 20Y6. In addition, the business had taxable income of $840,000 during the first calendar quarter o

> Selected accounts from the ledger of Restoration Arts for the fiscal year ended April 30, 2018, are as follows: Prepare a retained earnings statement for the year. Retained Earnings 31,200 May 1 (2017) 475,500 Dividends Apr. 30 Sept. 30 1,250 Apг.

> Climate Control Systems Co. offers its services to residents in the Spokane area. Selected accounts from the ledger of Climate Control Systems for the fiscal year ended December 31, 2018, are as follows: Prepare a retained earnings statemen

> The debits and credits from four related transactions, A through D, are presented in the following T accounts. Describe each transaction. Cash Accounts Payable B 300 3,920 A 20,580 D 16,660 D 16,660 Inventory A 20,580 3,920 300