Portland Lumber Company incurs a cost of $452 per hundred board feet (hbf) in processing certain “rough-cut” lumber, which it sells for $611 per hbf. An alternative is to produce a “finished cut” at a total processing cost of $559 per hbf, which can be sold for $748 per hbf. Prepare a differential analysis dated June 14 on whether to sell rough-cut lumber (Alternative 1) or process further into finished-cut lumber (Alternative 2).
> In papermaking operations for companies such as International Paper Company, wet pulp is fed into paper machines, which press and dry pulp into a continuous sheet of paper. The paper is formed at very high speeds (60 mph). Once the paper is formed, the p
> The following information concerns production in the Baking Department for August. All direct materials are placed in process at the beginning of production. a. Determine the number of units in work in process inventory at the end of the month. b. Dete
> How is “yield” determined for a process manufacturer?
> The American textile industry has moved much of its operations offshore in the pursuit of lower labor costs. Textile imports have risen from 2% of all textile production in 1962 to over 70% in 2012. Offshore manufacturers make long runs of standard mass-
> My Life Chronicles Inc. projected sales of 240,000 diaries for 2016. The estimated January 1, 2016, inventory is 19,900 units, and the desired December 31, 2016, inventory is 18,800 units. What is the budgeted production (in units) for 2016?
> The condensed income statements through income from operations for Dell Inc. and Apple Inc. for recent fiscal years follow (numbers in millions of dollars): Prepare comparative common-sized statements, rounding percents to one decimal place. Interpret
> “For a student, a grade of 65 percent is nothing to write home about. But for the airline . . . [industry], filling 65 percent of the seats . . . is the difference between profit and loss. The [economy] might be just strong enough to sustain all the car
> Banks have a variety of products, such as savings accounts, checking accounts, certificates of deposit (CDs), and loans. Assume that you were assigned the task of determining the administrative costs of “checking and savings accounts” as a complete produ
> Aldin Aster, president of Teldar Tech Inc., was reviewing the product profitability reports with the controller, Francie Newburn. The following conversation took place: Aldin: I’ve been reviewing the product profitability reports. Our high-volume calcula
> Pryor Company prepared the following factory overhead report from its general ledger: The management of Pryor Company was dissatisfied with this report and asked the controller to prepare an activity analysis of the same information. This activity anal
> Maxxim Inc. prepared the following performance graphs for the prior year: Total Manufacturing Lead Time Total Inventory Dollars (In 000s) Percent of Sales Orders Filled on Time 70 $160 100%- 60 - 140 90 50 - 120 - 80 40 100 - 70 30 - 80 - 60 20 60 -
> Reliant Products Inc. manufactures electric space heaters. While the CEO, Lynn Jennings, is visiting the production facility, the following conversation takes place with the plant manager, Aaron Clark: Lynn: As I walk around the facility, I can’t help no
> Genuine Spice Inc. began operations on January 1, 2016. The company produce eight- ounce bottles of hand and body lotion called Eternal Beauty. The lotion is sold wholesale in 12-bottle cases for $100 per case. There is a selling commission of $20 per ca
> The total factory overhead for Diva-nation Inc. is budgeted for the year at $180,000. Diva-nation manufactures two types of men’s pants: jeans and khakis. The jeans and khakis each require 0.10 direct labor hour for manufacture. Each product is budgeted
> Matt’s Music Inc. makes three musical instruments: trumpets, tubas, and trombones. The budgeted factory overhead cost is $188,000. Factory overhead is allocated to the three products on the basis of direct labor hours. The products have
> Crosby 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
> Volt-Gear Inc. manufactures power equipment. Volt-Gear has two primary products— generators and air compressors. The following report was prepared by the controller for Volt-Gear senior marketing management for the year ended December 3
> The Texas Jean Company manufactures jeans in the cutting and sewing process. Jeans are manufactured in 100-jean batch sizes. The cutting time is 11 minutes per jean. The sewing time is 8 minutes per jean. It takes 15 minutes to move a batch of jeans from
> The following information is available for Crouching Alligator Manufacturing Company for the month ending October 31, 2016: For the month ended October 31, 2016, determine Crouching Alligator’s (a) cost of goods sold, (b) gross profit
> Car Corporation is considering new equipment. The equipment can be purchased from an overseas supplier for $3,900. The freight and installation costs for the equipment are $515. If purchased, annual repairs and maintenance are estimated to be $410 per ye
> The following selected data were taken from the financial statements of Robinson Inc. for December 31, 2016, 2015 and 2014: The 2016 net income was $372,000, and the 2015 net income was $492,000. No dividend son common stock was declared between 2014 a
> A company is considering replacing an old piece of machinery, which cost $600,000 and has $350,000 of accumulated depreciation to date, with a new machine that has a purchase price of $545,000. The old machine could be sold for $231,000. The annual varia
> Wild Sun Airlines Inc. has two divisions organized as profit centers, the Passenger Division and the Cargo Division. The following divisional income statements were prepared: The service department charge rate for the service department costs was based
> Reincarnation Bicycle Company manufactures commuter bicycles from recycled materials. The following data for April of the current year are available: a. Determine the direct labor rate variance, time variance, and total direct labor cost variance. b. H
> On July 31, the end of the first month of operations, Del Ray Equipment Company prepared the following income statement, based on the variable costing concept: Prepare an income statement under absorption costing. Del Ray Equipment Company Variable
> The following data were taken from the balance sheet of Gostkowski Company at the end of two recent fiscal years: a. Determine for each year (1) the working capital, (2) the current ratio, and (3) the quick ratio. Round ratios to one decimal place. b.
> A partial list of The Grand Hotel’s costs follows: a. Cost to mail a customer survey b. Wages of convention setup employees c. Pay-per-view movie rental costs (in rooms) d. Cost of food e. Cost of room mini-bar supplies f. Training for hotel restaurant s
> The following data were summarized from the accounting records for Jersey Coast Construction Company for the year ended June 30, 2016: Prepare divisional income statements for Jersey Coast Construction Company. Cost of goods sold: Service departmen
> Englert Hospital began using standards to evaluate its Admissions Department. The standard was broken into two types of admissions as follows: The unscheduled admission took longer because name, address, and insurance information needed to be determine
> Partially completed budget performance reports for Saskatoon Company, a manufacturer of light duty motors, follow: a. Complete the budget performance reports by determining the correct amounts for the lettered spaces. b. Compose a memo to Robin Mooney,
> At the beginning of the period, the Fabricating Department budgeted direct labor of $9,280 and equipment depreciation of $2,300 for 640 hours of production. The department actually completed 600 hours of production. Determine the budget for the departmen
> Based on the data in Exercise 21-7 and assuming that the average compensation per hour for staff is $45 and for partners is $140, prepare a professional labor cost budget for each department for Rollins and Cohen, CPAs, for the year ending December 31, 2
> True Tab Inc. produces a small and large version of its popular electronic scale. The anticipated unit sales for the scales by sales region are as follows: The finished goods inventory estimated for July 1, 2017, for the small and large scale models is
> Wood You Lie To Me Furniture Company manufactures designer home furniture. Wood You Lie To Me uses a standard cost system. The direct labor, direct materials, and factory overhead standards for an unfinished dining room table are as follows: a. Determi
> The controller of Ming Ware Ceramics Inc. wishes to prepare a cost of goods sold budget for September. The controller assembled the following information for constructing the cost of goods sold budget: Use the preceding information to prepare a cost o
> Dell Inc. and Hewlett-Packard Company (HP) compete with each other in the personal computer market. Dell’s primary strategy is to assemble computers to customer orders, rather than for inventory. Thus, for example, Dell will build and d
> Horizon Financial Inc. was organized on February 28, 2016. Projected selling and administrative expenses for each of the first three months of operations are as follows: Depreciation, insurance, and property taxes represent $9,000 of the estimated mont
> The following data were taken from the financial statements of Gates Inc. for the current fiscal year. Assuming that long-term investments totaled $3,000,000 throughout the year and that total assets were $7,000,000 at the beginning of the current fiscal
> Office Mart Inc. has “cash and carry” customers and credit customers. Office Mart estimates that 25% of monthly sales are to cash customers, while the remaining sales are to credit customers. Of the credit customers, 3
> a. Using the information in Exercise 27.17 identify the cost of quality classification for each activity. Exercise 27.17: Silicon Solutions Inc. manufactures RAM memory chips for personal computers. An activity analysis was conducted, and the following
> Starwood Hotels & Resorts Worldwide provides lodging services around the world. The company is separated into two major divisions. • Hotel Ownership: Hotels owned and operated by Starwood. • Vacation Ownership: Res
> Audio Escape Inc. manufactures audio speakers. Each speaker requires $145 per unit of direct materials. The speaker manufacturing assembly cell includes the following estimated costs for the period: Speaker assembly cell, estimated costs: The operating
> The following report was prepared for evaluating the performance of the plant manager of Marching Ants Inc. Evaluate and correct this report. Marching Ants Inc. Manufacturing Costs For the Quarter Ended June 30, 2016 Materials used in production (in
> Choco La Ti-Da Company produces chocolate bars. The primary materials used in producing chocolate bars are cocoa, sugar, and milk. The standard costs for a batch of chocolate (4,500 bars) are as follows: Determine the standard direct materials cost per
> The Swift Mountain Ski Company manufactures skis in the finishing and assembly process. Skis are manufactured in 30-ski batch sizes. The finishing time is 14 minutes per ski. The assembly time is 10 minutes per ski. It takes 8 minutes to move a batch of
> Reyes Industries Inc. manufactures and sells a variety of commercial vehicles in the North east and South west regions. There are two salespersons assigned to each territory. Higher commission rates go to the most experienced salespersons. The following
> The following events took place for Video Wave Manufacturing Company during January 2016, the first month of its operations as a producer of digital video monitors: a. Purchased $133,200 of materials. b. Used $94,080 of direct materials in production. c.
> Ace Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models. The production budget for July for the two rackets is as follows: Both rackets are produced in two departments, Forming and Assembly. The direct labor hours
> During the first month of operations ended July 31, 2016, Head Gear Inc. manufactured 6,400 hats, of which 5,200 were sold. Operating data for the month are summarized as follows: During August Head Gear Inc. manufactured 4,000 hats and sold 5,200 hats
> Happy Feet Inc. manufactures and sells three types of shoes. The income statements prepared under the absorption costing method for the three shoes are as follows: In addition, you have determined the following information with respect to allocated fix
> Winter Lake Hotels is considering the construction of a new hotel for $150 million. The expected life of the hotel is 30 years, with no residual value. The hotel is expected to earn revenues of $55 million per year. Total expenses, including depreciation
> The costs of energy consumed in producing good units in the Baking Department of Pan Company were $14,875 and $14,615 for June and July, respectively. The number of equivalent units produced in June and July was 42,500 pounds and 39,500 pounds, respectiv
> AM Express Inc. is considering the purchase of an additional delivery vehicle for $55,000 on January 1, 2016. The truck is expected to have a five-year life with an expected residual value of $15,000 at the end of five years. The expected additional reve
> The cost of materials transferred into the Rolling Department of Keystone Steel Company is $510,000 from the Casting Department. The conversion cost for the period in the Rolling Department is $81,200 ($54,700 factory overhead applied and $26,500 direct
> Ansara Company had the following abbreviated income statement for the year ended December 31, 2016: Assume that there were $3,860 million fixed manufacturing costs and $1,170 million fixed selling, administrative, and other costs for the year. The fini
> The following data were taken from the records of Griggs Company for December 2016: Prepare an income statement for presentation to management. Administrative expenses $100,800 Cost of goods sold (at standard). 550,000 Direct materials price varian
> Magna Lighting Inc. produces and sells lighting fixtures. An entry light has a total cost of $125 per unit, of which $80 is product cost and $45 is selling and administrative expenses. In addition, the total cost of $125 is made up of $90 variable cost a
> The comparative temporary investments and inventory balances of 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 Pre
> The demand for aloe Vera hand lotion, one of numerous products manufactured by Smooth Skin Care Products Inc., has dropped sharply because of recent competition from a similar product. The company’s chemists are currently completing tes
> Eclipse Construction Company is considering selling excess machinery with a book value of $280,000 (original cost of $400,000 less accumulated depreciation of $120,000) for $221,000, less a 5% brokerage commission. Alternatively, the machinery can be lea
> Melton Inc. has sales of $1,750,000, and the break-even point in sales dollars is $875,000. Determine the company’s margin of safety as a percent of current sales.
> The cost of materials transferred into the Filling Department of Lilac Skin Care Company is $20,250, including $6,000 from the Blending Department and $14,250 from the materials storeroom. The conversion cost for the period in the Filling Department is $
> A company reports the following: Income before income tax …………………………………… $4,000,000 Interest expense ……………………………………………………... 400,000 Determine the number of times interest charges are earned.
> Rollins and Cohen, CPAs, offer three types of services to clients: auditing, tax, and small business accounting. Based on experience and projected growth, the following billable hours have been estimated for the year ending December 31, 2016: The avera
> The materials used by the Multinomah Division of Isbister Company are currently purchased from outside suppliers at $90 per unit. These same materials are produced by the Pembroke Division. The Pembroke Division can produce the materials needed by the Mu
> The costs per equivalent unit of direct materials and conversion in the Rolling Department of Keystone Steel Company are $60 and $10, respectively. The equivalent units to be assigned costs are as follows: The beginning work in process inventory had a
> Skeleton Company completed 200,000 units during the year at a cost of $3,000,000. The beginning finished goods inventory was 25,000 units at $310,000. Determine the cost of goods sold for 210,000 units, assuming a FIFO cost flow.
> Two items are omitted from each of the following three lists of cost of goods sold data from a manufacturing company income statement. Determine the amounts of the missing items, identifying them by letter. $ 61,600 329,000 (a) $ 46,200 Finished goo
> Prepare a 2016 income statement through gross profit for Dvorak Company, using the variance data in Practice Exercises 22-1B, 22-2B, 22-3B, and 22-4B. Assume Dvorak sold 1,000 units at $90 per unit. Exercises 22-1B: Dvorak Company produces a product th
> During the first month of operations ended July 31, 2016, YoSan Inc. manufactured 2,400 flat panel televisions, of which 2,000 were sold. Operating data for the month are summarized as follows: Instructions 1. Prepare an income statement based on the
> For a recent year, McDonald’s company-owned restaurants had the following sales and expenses (in millions): Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative exp
> Report the result of each of the following operations using the proper number of significant figures: 27.2 x 15.63 а. 4.79 x 105 с. 3.58 е. 4.0 1.84 0.7911 11.4 x 10-4 f. 13.6 b. 18.02 x 1.6 d. 3.58 x 4.0 = 0.45
> Report the result of the following addition to the proper number of significant figures and in scientific notation. 4.80 × 108 + 9.149 × 102
> Report the result of each of the following to the proper number of significant figures: a. 7.939 + 6.26 = b. 2.4 - 8.321 = c. 2.333 + 1.56 - 0.29 =
> Assume the Body-Mass Index (BMI) is calculated using the expression BMI = weight (kg)/height2 (m2). If a patient has a height of 1.6 m and a BMI of 38 kg/m2, what is the patient’s weight in both kg and lb?
> The density of mercury is 13.6 g/mL. If a sample of mercury weighs 272 g, what is the volume of the sample in mL?
> The specific gravity of a patient’s urine sample was measured to be 1.008. Given that the density of water is 1.000 g/mL at 40C, what is the density of the urine sample?
> The density of methanol at 200C is 0.791 g/mL. What is the mass of a 50.0 mL sample of methanol?
> Refer to Question 1.129. Suppose that each of the bars had the same mass. How could you determine which bar had the lowest density and which had the highest density? Question 1.129: You are given three bars of metal. Each is labeled with its identity (
> You are given a piece of wood that is either maple, teak, or oak. The piece of wood has a volume of 1.00 × 102 cm3 and a mass of 98 g. The densities of maple, teak, and oak are as follows: What is the identity of the piece of wood? Woo
> What is the mass of a femur (leg bone) having a volume of 118 cm3? The density of bone is 1.8 g/cm3.
> In Question 1.123, you calculated the volume of 8.00 × 102 g of air with a density of 1.29 g/L. The temperature of the air sample was lowered and the density increased to 1.50 g/L. Calculate the new volume of the air sample. Question 1.123: What volume
> Calculate the density of 50.0 g of an isopropyl alcohol– water mixture (commercial rubbing alcohol) that has a volume of 63.6 mL.
> The energy available from the world’s total petroleum reserve is estimated at 2.0 × 1022 J. Convert this energy to kcal.
> Round each of the following numbers to two significant figures. a. 6.2262 b. 3895 c. 6.885 d. 2.2247 e. 0.0004109
> Convert 300.0 K to: a. 0C b. 0F
> The weather station posted that the low for the day would be -100F. Convert -10.00F to: a. 0C b. K
> What is the relationship between density and specific gravity?
> Label each of the following statements as true or false. If false, correct the statement. a. Energy can be created or destroyed. b. Energy can be converted from electrical energy to light energy. c. Conversion of energy from one form to another can occur
> Rank the following temperatures from coldest to hottest: zero degrees Celsius, zero degrees Fahrenheit, zero Kelvin
> Sally and Gertrude were comparing their weight-loss regimens. Sally started her diet weighing 193 lb. In 1 year she weighed 145 lb. Gertrude started her diet weighing 80 kg. At the end of the year, she weighed 65 kg. Who lost the most weight? a. Describe
> Which volume is smaller: 1.0 L or 1.0 qt?
> Which volume is smaller: 50.0 mL or 0.500 L?
> A newborn is 21 in in length and weighs 6 lb 9 oz. Describe the baby in metric units.
> If a drop of blood has a volume of 0.05 mL, how many drops of blood are in the adult described in Question 1.99? Question 1.99: A 150 lb adult has approximately 9 pt of blood. How many L of blood does the individual have?
> Represent each of the following numbers in scientific notation, showing only significant digits: a. 48.20 b. 480.0 c. 0.126 d. 9,200 e. 0.0520 f. 822
> Tire pressure is measured in units of lb/in2. Convert 32 lb/in2 to g/cm2 (use the proper number of significant figures).
> Convert 7.5 × 10-3 cm to mm.
> Convert 3.0 m to: a. yd b. in c. ft d. cm e. mm
> Convert 5.0 qt to: a. gal b. pt c. L d. mL e. µL
