Question: The following journal entries are recorded in

> Blanchard Company manufactures a single product that sells for $180 per unit and whose total variable costs are $135 per unit. The company’s annual fixed costs are $562,500. Prepare a CVP chart for the company.

> Blanchard Company manufactures a single product that sells for $180 per unit and whose total variable costs are $135 per unit. The company’s annual fixed costs are $562,500. The sales manager predicts that annual sales of the company’s product will soon

> Record the journal entry to close over- or underapplied factory overhead to Cost of Goods Sold for each of the two companies below. Storm Concert Valle Home Promotions Builders Actual indirect materials costs $22,000 $ 12,500 Actual indirect labor

> Refer to information in Exercise 19-7. Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold. Information from Exercise 19-7: The following information is available for Lock-Tite Company, which produces

> Both managerial accounting and financial accounting provide useful information to decision makers. Indicate in the following chart the most likely source of information for each business decision. Primary Information Source Business Decision Manager

> Shown here are annual financial data at December 31, 2015, taken from two different companies. Required 1. Compute the cost of goods sold section of the income statement at December 31, 2015, for each company. Include the proper title and format in the

> Nazaro’s Boot Company makes specialty boots for the rodeo circuit. On December 31, 2014, the company had (a) 300 pairs of boots in finished goods inventory and (b) 1,200 heels at a cost of $8 each in raw materials inventory. During 2015, the company purc

> Using the data from Problem 18-2A and the inventory information for Leone Company below, complete the requirements below. Assume income tax expense is $233,725 for the year. Required 1. Prepare the company’s 2015 schedule of cost of g

> The following calendar year-end information is taken from the December 31, 2015, adjusted trial balance and other records of Leone Company. Required 1. Identify and classify each of the costs above as either a product or period cost. 2. Classify each o

> Listed here are the total costs associated with the 2015 production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $500 each. Required 1. Classify each cost and its amount as (a) either variable or fixed and (b) either product or p

> Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar yearend December 31, 2015, follow. Required Answer each of the following questions by providing supporting computations. 1. Assume that the company&acir

> Summary information from the financial statements of two companies competing in the same industry follows. Required 1. For both companies compute the (a) current ratio, (b) acid-test ratio, (c) accounts (including notes) receivable turnover, (d) invent

> Selected year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31, 2014, were inventory, $48,900; total assets, $189,400; common stock, $90,000; and retained earnings, $22,748.)

> Plum Corporation began the month of May with $700,000 of current assets, a current ratio of 2.50:1, and an acid-test ratio of 1.10:1. During the month, it completed the following transactions (the company uses a perpetual inventory system). May 2 Purch

> Selected comparative financial statements of Korbin Company follow. Required 1. Compute each year’s current ratio. (Round ratio amounts to one decimal.) 2. Express the income statement data in common-size percents. (Round percents to

> Peugeot S.A. reports the following financial information for the year ended December 31, 2011 (euros in millions). Prepare its statement of cash flows under the indirect method. (Hint: Each line item below is titled, and any necessary parentheses added,

> Selected comparative financial statements of Haroun Company follow. Required 1. Compute trend percents for all components of both statements using 2009 as the base year. (Round percents to one decimal.) Analysis Component 2. Analyze and comment on th

> Refer to Golden Corporation’s financial statements and related information in Problem 16-6A. Required Prepare a complete statement of cash flows; report its cash flows from operating activities according to the direct method. Informat

> Refer to the information reported about Golden Corporation in Problem 16-6A. Required Prepare a complete statement of cash flows using a spreadsheet as in Exhibit 16A.1; report operating activities under the indirect method. Identify the debits and cred

> Golden Corp., a merchandiser, recently completed its 2015 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits

> Refer to Forten Company’s financial statements and related information in Problem 16-3A. Required Prepare a complete statement of cash flows; report its operating activities according to the direct method. Disclose any noncash investin

> Refer to the information reported about Forten Company in Problem 16-3A. Required Prepare a complete statement of cash flows using a spreadsheet as in Exhibit 16A.1; report its operating activities using the indirect method. Identify the debits and cred

> Forten Company, a merchandiser, recently completed its calendar-year 2015 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit,

> Refer to the information in Problem 16-1A. Required Prepare the cash flows from operating activities section only of the company’s 2015 statement of cash flows using the direct method. Information from Problem 16-1A: Lansing Company&a

> Lansing Company’s 2015 income statement and selected balance sheet data (for current assets and current liabilities) at December 31, 2014 and 2015, follow. Required Prepare the cash flows from operating activities section only of the

> A jeans maker is designing a new line of jeans called Slims. The jeans will sell for $205 per pair and cost $164 per pair in variable costs to make. 1. Compute the contribution margin per pair. 2. Compute the contribution margin ratio. 3. Describe what t

> Refer to the Simon Company information in Exercise 17-6. The company’s income statements for the years ended December 31, 2015 and 2014, follow. Assume that all sales are on credit and then compute: (1) days’ sales unc

> Felix & Co. reports the following information about its sales and cost of sales. Draw an estimated line of cost behavior using a scatter diagram, and compute fixed costs and variable costs per unit sold. Then use the high-low method to estimate the f

> A company reports the following information about its sales and its cost of sales. Each unit of its product sells for $500. Use these data to prepare a scatter diagram. Draw an estimated line of cost behavior and determine whether the cost appears to be

> Refer to the information in Exercise 21-16. 1. Compute the company’s degree of operating leverage for 2015. 2. If sales decrease by 5% in 2016, what will be the company’s pretax income? 3. Assume sales for 2016 decreas

> Company A is a manufacturer with current sales of $6,000,000 and a 60% contribution margin. Its fixed costs equal $2,600,000. Company B is a consulting firm with current service revenues of $4,500,000 and a 25% contribution margin. Its fixed costs equal

> R&R Tax Service offers tax and consulting services to individuals and small businesses. Data for fees and costs of three types of tax returns follow. R&R provides services in the ratio of 5:3:2 (easy, moderate, business). Fixed costs total $18,00

> Handy Home sells windows and doors in the ratio of 8:2 (windows:doors). The selling price of each window is $200 and of each door is $500. The variable cost of a window is $125 and of a door is $350. Fixed costs are $900,000. Use this information to dete

> Nombre Company management predicts $390,000 of variable costs, $430,000 of fixed costs, and a pretax income of $155,000 in the next period. Management also predicts that the contribution margin per unit will be $9. Use this information to compute the (1)

> Refer to the information in Exercise 21-16. The marketing manager believes that increasing advertising costs by $81,000 in 2016 will increase the company’s sales volume to 11,000 units. Prepare a forecasted contribution margin income st

> Refer to the information in Exercise 21-16. If the company raises its selling price to $240 per unit, compute its (1) contribution margin per unit, (2) contribution margin ratio, (3) break-even point in units, and (4) break-even point in sales dollars.

> Refer to the information in Exercise 21-16. Assume the company is considering investing in a new machine that will increase its fixed costs by $40,500 per year and decrease its variable costs by $9 per unit. Prepare a forecasted contribution margin incom

> Refer to Simon Company’s balance sheets in Exercise 17-6. Analyze its year-end short-term liquidity position at the end of 2015, 2014, and 2013 by computing (1) the current ratio and (2) the acid-test ratio. Comment on the ratio results

> Cooper Company expects to sell 200,000 units of its product next year, which would generate total sales of $17 million. Management predicts that pretax net income for next year will be $1,250,000 and that the contribution margin per unit will be $25. Use

> Bloom Company management predicts that it will incur fixed costs of $160,000 and earn pretax income of $164,000 in the next period. Its expected contribution margin ratio is 25%. Use this information to compute the amounts of (1) total dollar sales and (

> Blanchard Company manufactures a single product that sells for $180 per unit and whose total variable costs are $135 per unit. The company’s annual fixed costs are $562,500. Management targets an annual pretax income of $1,012,500. Assume that fixed cost

> The production department described in Exercise 20-8 had $850,368 of direct materials and $649,296 of conversion costs charged to it during April. Also, its beginning inventory of $167,066 consists of $118,472 of direct materials cost and $48,594 of conv

> During April, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of these transferred units, 60,000 were in process in the production department at the beginning of

> Refer to the information in Exercise 20-6. Assume that Fields uses the FIFO method of process costing. 1. Calculate the equivalent units of production for the forming department. 2. Calculate the costs per equivalent unit of production for the forming de

> The Fields Company has two manufacturing departments, forming and painting. The company uses the weighted-average method of process costing. At the beginning of the month, the forming department has 25,000 units in inventory, 60% complete as to materials

> Refer to the information in Exercise 20-4 and complete the requirements for each of the three separate assumptions using the FIFO method for process costing. Information from Exercise 20-4: The production department in a process manufacturing system com

> The production department in a process manufacturing system completed 80,000 units of product and transferred them to finished goods during a recent period. Of these units, 24,000 were in process at the beginning of the period. The other 56,000 units wer

> Salud Company reports the following information. Use the indirect method to prepare only the operating activities section of its statement of cash flows for the year ended December 31, 2015. Selected 2015 Income Statement Data Selected Year-End 2015

> Explain a hybrid costing system. Identify a product or service operation that might well fit a hybrid costing system.

> Laffer Lumber produces bagged bark for use in landscaping. Production involves packaging bark chips in plastic bags in a bagging department. The following information describes production operations for October. The company’s revenue

> Hi-Test Company uses the weighted-average method of process costing to assign production costs to its products. Information for September follows. Assume that all materials are added at the beginning of its production process, and that conversion costs a

> The flowchart below shows the August production activity of the punching and bending departments of Wire Box Company. Use the amounts shown on the flowchart to compute the missing numbers identified by question marks. Punching Beginning work in pr

> Oslo Company produces large quantities of a standardized product. The following information is available for its production activities for May. Prepare a process cost summary report for this company, showing costs charged to production, unit cost infor

> Elliott Company produces large quantities of a standardized product. The following information is available for its production activities for March. Prepare a process cost summary report for this company, showing costs charged to production, unit cost

> Refer to the information in Exercise 20-14. Prepare journal entries dated June 30 to record: (a) raw materials purchase, (b) direct materials usage, (c) indirect materials usage, (d) direct labor usage, (e) indirect labor usage, (f) other overhead costs,

> Pro-Weave manufactures stadium blankets by passing the products through a weaving department and a sewing department. The following information is available regarding its June inventories: The following additional information describes the company&acir

> Refer to the information in Exercise 20-12. Prepare a process cost summary using the FIFO method. (Round cost per equivalent unit calculations to two decimal places.) Information from Exercise 20-12: The following partially completed process cost summar

> Fitz Company reports the following information. Use the indirect method to prepare only the operating activities section of its statement of cash flows for the year ended December 31, 2015. Selected 2015 Income Statement Data Selected Year-End 2015

> Refer to the information in Exercise 20-9 and complete its parts 1 and 2 using the FIFO method. Information from Exercise 20-9: The production department described in Exercise 20-8 had $850,368 of direct materials and $649,296 of conversion costs charge

> Refer to the information in Exercise 20-8 to compute the number of equivalent units with respect to both materials used and conversion costs in the production department for April using the FIFO method. Information from Exercise 20-8: During April, the

> The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system. Compute the following amounts for the month of May. 1. Cost of direct materials used. 2. Cost of direct la

> Starr Company reports the following information for August. Prepare journal entries to record the following events. 1. Raw materials purchased. 2. Direct materials used in production. 3. Direct labor used in production. 4. Applied overhead. Raw mat

> As of the end of June, the job cost sheets at Racing Wheels, Inc., show the following total costs accumulated on three custom jobs. Job 102 was started in production in May and the following costs were assigned to it in May: direct materials, $6,000; d

> A recent balance sheet for Porsche AG shows beginning raw materials inventory of €83 million and ending raw materials inventory of €85 million. Assume the company purchased raw materials (on account) for €3,108 million during the year. (1) Prepare journa

> Hansel Corporation has requested bids from several architects to design its new corporate headquarters. Frey Architects is one of the firms bidding on the job. Frey estimates that the job will require the following direct labor. Frey applies overhead t

> Custom Cabinetry has one job in process (Job 120) as of June 30; at that time, its job cost sheet reports direct materials of $6,000, direct labor of $2,800, and applied overhead of $2,240. Custom Cabinetry applies overhead at the rate of 80% of direct l

> Moonrise Bakery applies factory overhead based on direct labor costs. The company incurred the following costs during 2015: direct materials costs, $650,000; direct labor costs, $3,000,000; and factory overhead costs applied, $1,800,000. 1. Determine the

> In December 2014, Infodeo established its predetermined overhead rate for movies produced during 2015 by using the following cost predictions: overhead costs, $1,680,000, and direct labor costs, $480,000. At year-end 2015, the company’s

> The following income statement and information about changes in noncash current assets and current liabilities are reported. Changes in current asset and current liability accounts for the year that relate to operations follow. Required Prepare only

> In December 2014, Custom Mfg. established its predetermined overhead rate for jobs produced during 2015 by using the following cost predictions: overhead costs, $750,000, and direct labor costs, $625,000. At year-end 2015, the company’s

> Using Exhibit 19.17 as a guide, prepare summary journal entries to record the following transactions and events a through g for a company in its first month of operations. a. Raw materials purchased on account, $90,000. b. Direct materials used in produc

> Use the data in Exercise 18-8 to prepare an income statement and the current assets section of the balance sheet for each company. Ignore income taxes. Data from Exercise 18-8: Pepper Company Company Garcon Beginning finished goods inventory. Begin

> Using the following data, compute (1) the cost of goods manufactured and (2) the cost of goods sold for both Garcon Company and Pepper Company for the year ended December 31, 2015. Pepper Company Company Garcon Beginning finished goods inventory. Be

> Current assets for two different companies at fiscal year-end 2015 are listed here. One is a manufacturer, Rayzer Skis Mfg., and the other, Sunrise Foods, is a grocery distribution company. (1) Identify which set of numbers relates to the manufacturer an

> Listed below are costs of providing an airline service. Classify each cost as (a) either variable or fixed, and (b) either direct or indirect. Consider the cost object to be a flight. Variable or Fixed Direct or Indirect Cost Variable Fixed Direct I

> Listed here are product costs for the production of soccer balls. Classify each cost (a) as either variable or fixed and (b) as either direct or indirect. What patterns do you see regarding the relation between costs classified in these two ways? Va

> Beck Manufacturing reports the information below for 2015. Using this information: 1. Prepare the schedule of cost of goods manufactured for the year. 2. Compute cost of goods sold for the year. Raw Materials Inventory Work in Process Inventory Fini

> Use the information in Exercise 18-13 to prepare an income statement for Delray Mfg. (a manufacturer). Assume that its cost of goods manufactured is $534,390. Information from Exercise 18-13: Following are the selected account balances of Delray Mfg.

> Given the following selected account balances of Delray Mfg. prepare its schedule of cost of goods manufactured for the year ended December 31, 2015. Include a listing of the individual overhead account balances in this schedule. Sales $1,250,000 Re

> Compute trend percents for the following accounts, using 2011 as the base year (round the percents to whole numbers). State whether the situation as revealed by the trends appears to be favorable or unfavorable for each account. 2015 2014 2013 2012

> For each of the following accounts for a manufacturing company, place a ✓ in the appropriate column indicating that it appears on the balance sheet, the income statement, the schedule of cost of goods manufactured, and/or a detailed lis

> Compute cost of goods sold for each of these two companies for the year ended December 31, 2015. A B 1 Precision 2 Unimart Manufacturing 3 Beginning inventory 4 Merchandise $275,000 Finished goods 6 Cost of purchases Cost of goods manufactured 8 End

> Refer to the data in Exercise 18-8. Compute the total (1) prime costs and (2) conversion costs for each company. Data from Exercise 18-8: Pepper Company Company Garcon Beginning finished goods inventory. Beginning work in process inventory Beginnin

> Refer to the Simon Company information in Exercises 17-6 and 17-8. Compare the company’s long-term risk and capital structure positions at the end of 2015 and 2014 by computing these ratios: (1) debt and equity ratios—

> Simon Company’s year-end balance sheets follow. Express the balance sheets in common-size percents. Round amounts to the nearest one-tenth of a percent. Analyze and comment on the results. At December 31 2015 2014 2013 Assets Cash

> Common-size and trend percents for Rustynail Company’s sales, cost of goods sold, and expenses follow. Determine whether net income increased, decreased, or remained unchanged in this three-year period. Common-Size Percents Trend P

> Express the following comparative income statements in common-size percents and assess whether or not this company’s situation has improved in the most recent year (round the percents to one decimal). GOMEZ CORPORATION Comparative

> Nintendo Company, Ltd., reports the following financial information as of, or for the year ended, March 31, 2013. Nintendo reports its financial statements in both Japanese yen and U.S. dollars as shown (amounts in millions). 1. Compute Nintendoâ

> Use the financial data for Randa Merchandising, Inc., in Exercise 17-13 to prepare its income statement for calendar year 2015. (Ignore the earnings per share section.) Data from Exercise 17-13: In 2015, Randa Merchandising, Inc., sold its interest in a

> Roak Company and Clay Company are similar firms that operate in the same industry. Clay began operations in 2013 and Roak in 2010. In 2015, both companies pay 7% interest on their debt to creditors. The following additional information is available. Wr

> Hampton Company reports the following information for its recent calendar year. Prepare the operating activities section of the statement of cash flows for Hampton Company using the indirect method. Income Statement Data Selected Year-End Balance Sh

> Refer to Simon Company’s financial information in Exercises 17-6 and 17-8. Additional information about the company follows. To help evaluate the company’s profitability, compute and interpret the following ratios for

> The following summarized Cash T-account reflects the total debits and total credits to the Cash account of Thomas Corporation for calendar-year 2015. 1. Use this information to prepare a complete statement of cash flows for year 2015. The cash provided o

> Many fast-food restaurants compete on lean business concepts. Match each of the following activities at a fast-food restaurant with the lean business concept it strives to achieve. Some activities might relate to more than one lean business concept. ____

> Refer to the information from Exercise 21-6. Use spreadsheet software to use ordinary least-squares regression to estimate the cost equation, including fixed and variable cost amounts. Information from Exercise 21-6: Felix & Co. reports the followin

> Following are five series of costs A through E measured at various volume levels. Examine each series and identify which is fixed, variable, mixed, step-wise, or curvilinear. A B D E Volume (Units) Series E $5,000 5,000 5,000 5,000 5,000 5,000 5,000

> The left column lists several cost classifications. The right column presents short definitions of those costs. In the blank space beside each of the numbers in the right column, write the letter of the cost best described by the definition. A. Total cos

> Following are five graphs representing various cost behaviors. (1) Identify whether the cost behavior in each graph is mixed, step-wise, fixed, variable, or curvilinear. (2) Identify the graph (by number) that best illustrates each cost behavior: (a) Fac

> Match each of the following items A through G with the best numbered description of its purpose. A. Factory Overhead account B. Process cost summary C. Equivalent units of production D. Work in Process Inventory account E. Raw Materials Inventory account

> Use the following information about the cash flows of Ferron Company to prepare a complete statement of cash flows (direct method) for the year ended December 31, 2015. Use a note disclosure for any noncash investing and financing activities. $ 40,0