Question: Refer to the information for Toby’s

> Jordan Company provided the following information: Current assets: Cash …………………………………….……….$12,450,000 Accounts receivable …………………………..8,740,000 Inventories ………………………………………..8,150,000 Total current assets ………………………..$29,340,000 Current liabilities ……………

> Lemmons Inc. has the following two activities: (1) Retesting reworked products, cost: $720,000. The retesting cost of the most efficient competitor is $225,000. (2) Welding subassemblies, cost: $1,350,000 (67,500 welding hours). A benchmarking study reve

> Consider the following independent events: a. Gain on sale of an asset b. Increase in accounts receivable c. Decrease in prepaid insurance d. Amortization expense e. Increase in accounts payable f. Uncollectible accounts expense g. Decrease in wages pay

> Refer to Exercise 13-48. Suppose that Kamber is considering building a new plant inside a foreign trade zone to replace its chemical manufacturing plant. Required: 1. How much duty will be paid per year by the factory located inside the foreign trade zo

> At the beginning of the year, Lopez Company had the following standard cost sheet for one of its chemical products: Direct materials (4 lbs. @ $2.80) ………………………….$11.20 Direct labor (2 hrs. @ $18.00) ……………………………….36.00 FOH (2 hrs. @ $5.20) …………………………………

> Kamber, Inc., owns a factory located close to, but not inside, a foreign trade zone. The plant imports volatile chemicals that are used in the manufacture of chemical reagents for laboratories. Each year, Kamber imports about $14,200,000 of chemicals sub

> Match each term in Column A with its related definition in Column B. Column A 1. Spot rate 2. Currency appreciation 3. Translation risk 4. Transaction risk 5. Exchange rate Column B a. The rate at which one currency can be traded for another currenc

> Match each term in Column A with its related definition in Column B. Column A 1. Maquiladora 2. Import 3. Joint venture 4. Export 5. MNC Column B a. A company that does business in more than one country in such volume that its wellbeing and growth r

> Langer Company produces plastic items, including plastic housings for humidifiers. Each housing requires about 15 ounces of plastic costing $0.08 per ounce. Langer molds the plastic into the proper shape. Langer has budgeted production of the housings fo

> Refer to the information regarding Stillwater Designs above. Required: 1. Prepare a sales budget for each quarter of 20X1 and for the year in total. Show sales by product and in total for each time period. 2. How will Stillwater Designs use this sales b

> Peanut Land Inc. produces all-natural organic peanut butter. The peanut butter is sold in 12-ounce jars. The sales budget for the first 4 months of the year is as follows: Company policy requires that ending inventories for each month be 25% of next

> Refer to the information regarding Stillwater Designs on the previous page. Stillwater Designs needs a production budget for each product (representing the amount that must be outsourced to manufacturers located in Asia). Beginning inventory of S12L7 for

> All star Exposure designs and sells advertising services to small, relatively unknown companies. Last month, All star had sales commissions costs of $50,000, technology costs of $75,000, and research and development costs of $200,000. Selling expenses we

> H. Banks Company would like to design, produce, and sell versatile toasters for the home kitchen market. The toaster will have four slots that adjust in thickness to accommodate both slim slices of bread and oversized bagels. The target price is $60. Ban

> Mino Inc. manufactures chocolate syrup in three departments: cooking, mixing, and bottling. Mino uses the weighted average method. The following are cost and production data for the cooking department for April (Note: Assume that units are measured in ga

> The following information was obtained for the grinding department of Harlan Company for May: a. BWIP had 91,500 units, 30% complete with respect to manufacturing costs. b. EWIP had 25,200 units, 25% complete with respect to manufacturing costs. c. Start

> Prull Company, a job-order costing firm, worked on three jobs in July. Data are as follows: Overhead is applied to jobs at the rate of $10 per machine hour. By July 31, Jobs 86 and 88 were completed. Jobs 82 and 86 were sold. Job 87 remained in proce

> Refer to the information for Lauren Ashely Company above. Required: What was the cost of goods sold for September? Data for Exercise 46: In September, Lauren Ashley Company purchased materials costing $200,000 and incurred direct labor cost of $120,00

> Refer to the information for Lauren Ashley above. Required: 1. What was the cost of direct materials used in September? 2. What was the total manufacturing cost in September? 3. What was the cost of goods manufactured for September? Data for Exercise 4

> Refer to the information for Cherry Blossom Products on the previous page. Required: 1. What is the sales mix of DVDs and equipment sets? 2. Compute the break-even quantity of each product. Data for Exercise 43: Cherry Blossom Products Inc. produces a

> Linsenmeyer Company produces a common machine component for industrial equipment in three departments: molding, grinding, and finishing. The following data are available for September: During September, 18,000 components were completed. There is no beg

> Refer to the information for Grin Company above. Required: 1. What was the total prime cost in January? 2. What was the prime cost per unit in January? 3. What was the total conversion cost in January? 4. What was the conversion cost per unit in January

> Refer to the information for Grin Company above. Required: 1. What was the total product cost in January? 2. What was the product cost per unit in January? Data for Exercise 41: Grin Company manufactures digital cameras. In January, Grin produced 4,00

> Refer to the information for Slap shot Company above. Required: Prepare an income statement for Slap shot for the month of June and calculate the percentage of sales revenue represented by each line of the income statement. (Note: Round answers to one d

> A company has the following collection pattern: month of sale, 40%; month following sale, 60%. If credit sales for January and February are $100,000 and $200,000, respectively, the cash collections for February are a. $140,000. b. $300,000. c. $120,000.

> Tristar Manufacturing produces two types of battery-operated toy soldiers: infantry and special forces. The soldiers are produced by using one continuous process. Four activities have been identified: machining, setups, receiving, and packing. Resource d

> Refer to the information for Cherry Blossom Products on the previous page. Suppose that in the coming year, the company plans to produce an extra-thick yoga mat for sale to health clubs. The company estimates that 9,000 mats can be sold at a price of $15

> Refer to the information for Fly High Airlines above. Required: Use the high-low method to answer the following questions. 1. What is the variable rate for airplane depreciation? The fixed cost? 2. What is the cost formula for airplane depreciation? 3.

> Information on four independent companies follows. Calculate the correct amount for each question mark. (Note: Round unit dollar amounts and ratios to two decimal places; round break-even units to the nearest whole unit.) Laertes Ophelia Fortinbras

> The blending department had the following data for the month of March Units in BWIP…………………………………………………….— Units completed…………………………………………..21,600 Units in EWIP (60% complete)………………………2,250 Total manufacturing costs ………………………..$82,620 Required: 1. What

> Wellington Chocolate Company uses activity-based costing (ABC). The controller identified two activities and their budgeted costs: Setting up equipment …………â€&brv

> Bowman Company manufactures cooling systems. Bowman produces all the parts necessary for its product except for one electronic component, which is purchased from two local suppliers: Manzer Inc. and Buckner Company. Both suppliers are reliable and seldom

> Suppose that Stillwater Designs has two classes of distributors: JIT distributors and non-JIT distributors. The JIT distributor places small, frequent orders, and the non-JIT distributor tends to place larger, less frequent orders. Both types of distribu

> Examine the graphs in Exercise 3-40. Required: As explained in the chapter, cost behavior patterns can be described as fixed, variable, semi- variable, mixed, or step function (i.e., semi-fixed) in nature. Explain the exact type of cost behavior patter

> Suppose that a surgical ward has gathered the following information for four nursing activities and two types of patients: Required: 1. Determine the total nursing costs assigned to each patient category. 2. Output is measured in patient days. Assuming

> What is a focused value stream?

> At the beginning of the year, Han Company estimated the following: Overhead ………………………………….$582,400 Direct labor hours ………………………….80,000 Han uses normal costing and applies overhead on the basis of direct labor hours. For the month of January, direct la

> The controller of Ashton Company prepared the following projected income statement: Sales ……………………………………………………..$88,000 Total variable cost ……………………………………23,760 Contribution margin ………………………………$64,240 Total fixed cost ………………………………………..43,800 Operating i

> Paterson Company,* a U.S.-based company, manufactures and sells electronic components worldwide. Virtually all its manufacturing takes place in the United States. The company has marketing divisions throughout Europe, including France. Debbie Kishimoto,

> Corporate sustainability reports vary greatly across companies and industries. Select two companies that interest you and conduct an online search to find their corporate sustainability report. (If one or both of the companies you selected do not issue a

> Artistic Woodcrafting Inc. began several years ago as a one-person, cabinet-making operation. Employees were added as the business expanded. Last year, sales volume totaled $850,000. Volume for the first five months of the current year totaled $600,000,

> Lindell Manufacturing embarked on an ambitious quality program that is centered on continual improvement. This improvement is operationalized by declining quality costs from year to year. Lindell rewards plant managers, production supervisors, and worker

> Luna Company is a printing company and a subsidiary of a large publishing company. Luna is in its fourth year of a 5-year, quality improvement program. The program began in 20X1 as a result of a report by a consulting firm that revealed that quality cost

> Gateway Construction Company, run by Jack Gateway, employs 25 to 30 people as subcontractors for laying gas, water, and sewage pipelines. Most of Gateway’s work comes from contracts with city and state agencies in Nebraska. The company&

> The comparative balance sheets and income statement of Piura Manufacturing follow. Additional transactions for 20X2 were as follows: a. Cash dividends of $8,000 were paid. b. Equipment was acquired by issuing common stock with a par value of $6,000

> Shaftel Ready Mix is a processor and supplier of concrete, aggregate, and rock products. The company operates in the intermountain western United States. Currently, Shaftel has 14 cement-processing plants and a labor force of more than 375 employees. Wit

> Under the weighted average method, how are prior-period costs and output treated? How are they treated under the FIFO method?

> Manny Carson, certified management accountant and controller of Wakeman Enterprises, has been given permission to acquire a new computer and software for the company’s accounting system. The capital investment analysis showed an NPV of $100,000. However,

> Refer to the information for Jasmine Company above. Required: Prepare common-size income statements by using Year 1 as the base period. (Note: Round answers to the nearest whole percentage.) Data for Exercise 24: Jasmine Company provided the followin

> Refer to the information for Jasmine Company above. Required: Prepare common-size income statements by using net sales as the base. (Note: Round answers to the nearest whole percentage.) Data for Exercise 25: Jasmine Company provided the following inc

> Refer to the information for Theta Company above. Required: Compute the (1) theoretical cycle time (in minutes), (2) actual cycle time (in minutes), (3) theoretical velocity in units per hour, and (4) actual velocity in units per hour. (Round units to t

> Teslum Inc. has a number of divisions, including the Machina Division, a producer of high-end espresso makers, and the Java Division, a chain of coffee shops. Machina Division produces the EXP-100 model espresso maker that can be used by Java Division to

> Blackburn Inc. uses Otavalo Manufacturing and Piura Company to buy two precision- machined parts used in the manufacture of its permanent-magnet motors: Part #625 and Part #827. Consider two activities: testing parts and reordering parts. After the two p

> Limpio Company produces dishwashers for 36 retail outlets. Of the 36 retail outlets, 34 are small, separately owned appliance stores and two are large retail chains. The two large retailers buy 80% of the dishwashers produced. The 34 smaller customers pu

> Community Credit Union has collected the following information for four activities and two types of credit cards: There are 12,500 holders of Silver cards and 50,000 holders of Premium cards. Required: Calculate the unit cost (rounded to the nearest c

> Refer to the information for Sanjay Company on the previous page. Now assume that Sanjay uses the sequential method to allocate support department costs. S1 is allocated first, then S2. Required: 1. Calculate the cost assignment ratios to be used under

> Discuss the benefits of quality cost reports that simply list the quality costs for each category.

> Refer to the information for Sanjay Company above. Required: 1. Calculate the cost assignment ratios to be used under the direct method for Departments S1 and S2. (Note: Each support department will have two ratios—one for Assembly and

> At the beginning of March, Mendez Company had two jobs in process, Job 86 and Job 87, with the following accumulated cost information: During March, two more jobs (88 and 89) were started. The following direct materials and direct labor costs were adde

> Refer to the information for Cinturas Company given above. Required: 1. Calculate the consumption ratios for the four drivers. 2. Is there evidence of product diversity? Explain. Data for Exercise 29: Cinturas Company produces two types of menâ&

> Refer to the information for Jonson Company above. Jonson uses departmental overhead rates. In the firing department, overhead is applied on the basis of kiln hours (number of hours spent in the gas-fired kiln). In the polishing department, overhead is a

> Refer to the data for Pelham Company on the previous page. Required: 1. How many units are in ending inventory? 2. Using absorption costing, calculate the per-unit product cost. 3. What is the value of ending inventory under absorption costing? Data fo

> Refer to the information for Speedy Pete’s on the previous page. Coefficients shown by a regression program for Speedy Pete’s data are: Intercept ………â

> Refer to the information for Speedy Pete’s on the previous page. Assume that this information was used to construct the following formula for monthly delivery cost. Total Delivery Cost = $41,850 + ($12.00 × Number of Delive

> Chillmax Company plans to sell 3,500 pairs of shoes at $60 each in the coming year. Variable cost is 35% of the sales price; contribution margin is 65% of the sales price. Total fixed cost equals $78,000 (includes fixed factory overhead and fixed selling

> Refer to the information for Speedy Pete’s above. Speedy Pete’s controller wants to calculate the fixed and variable costs associated with its cutting-edge delivery service. Required: Using the high-low method, calcul

> Kleenaire Motors manufactures hybrid sports utility vehicles (SUVs). Kleenaire incurs monthly depreciation costs of $10,000,000 on its highly automated plant machinery and warehousing facility. Also, each SUV requires materials and manufacturing overhead

> Identify and discuss the four kinds of quality costs.

> Refer to the information for Theta Company on the previous page. The actual cycle time for Theta Company is 3.2 minutes, and the theoretical cycle time is 3 minutes. Required: 1. Calculate the amount of processing time and the amount of non processing t

> Belnap Company has provided the following partial comparative balance sheets and the income statement for 20X2. Required: Compute operating cash flows using the direct method. Belnap Company Comparative Balance Sheets At December 31, 20X1 and 20X

> During the week of August 21, Parley Manufacturing produced and shipped 4,000 units of its machine tools: 1,500 units of Tool SK1 and 2,500 units of Tool SK3. The cycle time for SK1 is 0.73 hour, and the cycle time for SK3 is 0.56 hour. The following cos

> Gumbrecht Company has the following departmental manufacturing layout for one of its plants: A consulting firm has recommended a value stream with the following manufacturing cell: Required: 1. Calculate the total time it takes to produce a batch of

> Pintura Company implemented a quality improvement program and tracked the following for the five years: By cost category as a percentage of sales for the same period of time: Required: 1. Prepare a bar graph that reveals the trend in quality cost as

> Loring Company had total sales of $2,400,000 for fiscal 20X1. The costs of quality-related activities are given below. Discounts due to defects ………………….…..$100,000 Retesting ……………………………………………..30,000 Vendor certification ……………………………….14,000 Rework ……………

> Palakiko’s Fish Taco Hut is a small start-up restaurant in Hanalei. Palakiko recently completed an online risk management course and has identified food safety as his restaurant’s top risk. Specifically, he is concerne

> Techno Inc. intends to invest in one of two competing types of flexible manufacturing systems: FLEX-1K and FLEX-2Z. Both systems have a project life of 10 years. The purchase price of the FLEX-1K system is $9,600,000, and it has a net annual after-tax ca

> Talmage Inc. has just completed development of a new printer. The new product is expected to produce annual revenues of $2,700,000. Producing the printer requires an investment in new equipment costing $2,880,000. The printer has a projected life cycle o

> Aretha Company provided the following information: Standard variable overhead rate (SVOR) per direct labor hour ….$4.70 Actual variable overhead costs …………………………………………….$335,750 Actual direct labor hours worked (AH) …………………………………….69,200 Actual product

> Explain how performance measurement can help improve an organization’s business sustainability efforts.

> Mulliner Company showed the following information for the year: Standard variable overhead rate (SVOR) per direct labor hour ……$3.50 Standard hours (SH) allowed per unit ………………………………………………3 Actual production in units ……………………………………………………….20,000 Actual

> Tulum Inc. makes a Mexican chocolate mix sold in 4-pound boxes. Planned production in units for the first 3 months of the coming year is: January ……………………….24,700 February ……………………..22,000 March …………………………30,200 Each box requires 4.2 pounds of chocol

> Refer to the information for Relax Spas above. Assume that a maximum of 8,000 massages of each type can be sold. Required: 1. What is the contribution margin per hour of masseuse time for each type of massage? 2. What is the optimal mix of massages? 3.

> Refer to the information for Relax Spas above. Assume that there are no other constraints. Required: 1. What is the contribution margin per hour of masseuse time for each type of massage? 2. What is the optimal mix of massages? 3. What is the total cont

> Bart’s Butters receives 1,000,000 containers of raw milk each period that it subsequently processes into consumable milk by adjusting the fat content, adding vitamins, and destroying any potentially harmful bacteria. For Bart’s, one container equals one

> Refer to the information for Mullett Marina above. Relevant fixed costs associated with this line include 60% of Boat Maintenance’s garage/warehouse rent and 50% of Boat Maintenance’s supervision salaries. In addition,

> Refer to the information for Mullett Marina above. Mullett’s management is deciding whether to keep or drop the Boat Maintenance service line. Mullett’s Boat Maintenance service line has a contribution margin of $100,0

> Rabbit Foot Motors has been approached by a new customer with an offer to purchase 5,000 units of its hands-free, Wi-Fi-enabled automotive model—the SMAK—at a price of $18,000 per automobile. Rabbit Foot’s other sales would not be affected by this new cu

> Coed Scents, a national producer of young adult perfumes and colognes, needs to determine if it would be cheaper to produce 100,000 bottles of its most popular perfume, Two AM, for sale in its college town shops or to purchase them from an outside suppli

> Suppose that Chillmax Company now sells both pairs of shoes and fabric carryalls. The pairs of shoes are priced at $60 and have variable costs of $21 each. The carryalls are priced at $36 and have variable costs of $9 each. Total fixed cost for Chillmax

> How is business sustainability different from environmental sustainability?

> Chillmax Company plans to sell 3,500 pairs of shoes at $60 each in the coming year. Unit variable cost is $21 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $78,000 (includes fi

> Tidwell Company has provided the following partial comparative balance sheets and the income statement for 20X2. Required: Compute operating cash flows using the direct method. Tidwell Company Comparative Balance Sheets At December 31, 20X1 and

> Swasey Company provided the following partial comparative balance sheets and the income statement for 20X2 Required: Compute operating cash flows using the indirect method. Swasey Company Comparative Balance Sheets At December 31, 20X1 and 20X2 2

> During the week of May 10, Hyrum Manufacturing produced and shipped 16,000 units of its aluminum wheels: 4,000 units of Model A and 12,000 units of Model B. The cycle time for Model A is 1.09 hours and for Model B is 0.47 hour. The following costs and pr

> Mabbut Company has the following departmental manufacturing layout for one of its plants: Cutting A consulting firm recommended a value stream with the following manufacturing cell: Required: 1. Calculate the total time it takes to produce a batch o

> Norris Company implemented a quality improvement program and tracked the following for the 5 years: By cost category as a percentage of sales for the same period of time: Required: 1. Prepare a bar graph that reveals the trend in quality cost as a pe

> Whitley Company had total sales of $1,000,000 for the year ending 20X1. The costs of quality are given below. Returns/allowances ……………………………….………$50,000 Design changes ……………………………………………….60,000 Prototype inspection ………………………………………..13,000 Downtime ……………

> Hunt Inc. intends to invest in one of two competing types of computer-aided manufacturing equipment: CAM X and CAM Y. Both CAM X and CAM Y models have a project life of 10 years. The purchase price of the CAM X model is $3,600,000, and it has a net annua

> Refer to the information above for Tico Inc. on the previous page Required: Calculate the labor rate and efficiency variances using the columnar and formula approaches.

> Bradshaw Company provided the following data: Standard fixed overhead rate (SFOR) ……………$5 per direct labor hour Actual fixed overhead costs …………………………………………………$301,680 Standard hours allowed per unit ……………………………………………4 hours Actual production ………………………