Question: Vista Vacuum Company has the following production

> When some people think about inventory theft, they imagine a shoplifter running out of a store with goods stuffed inside a jacket or bag. But that’s not what the managers at the Famous Footwear store on Chicago’s Madison Street were dealing with. Their o

> You are one of three partners who own and operate Mary’s Maid Service. The company has been operating for seven years. One of the other partners has always prepared the company’s annual financial statements. Recently, you proposed that the statements be

> Your friend, Suzie Whitson, has designed a new type of outdoor toy that helps children learn basic concepts such as colors, numbers, and shapes. Suzie’s product will target two groups: day care centers in warm climates and home school programs. Suzie has

> You have been asked to take part in an upcoming Young Professionals meeting in your area. The program planned for the evening will cover many aspects of today’s business world. Specifically, you have been asked to explain why there are two types of acc

> You have the opportunity to invest $10,000 in one of two companies from a single industry. The only information you have is shown here. The word high refers to the top third of the industry; average is the middle third; low is the bottom third. Required:

> Using the information from E3-19, reconcile the total cost of beginning inventory, transferred in costs, and current period costs to the cost of units transferred out and ending work in process. Data from E3-19: Stem Games manufactures playing cards. It

> The financial statements for Royale and Cavalier companies are summarized here: These two companies are in the same business and state but different cities. Each company has been in operation for about 10 years. Both companies received an unqualified aud

> Coke and Pepsi are well-known international brands. Coca-Cola Co. sells more than $42 billion each year while annual sales of PepsiCo products exceed $62 billion. Compare the two companies as a potential investment based on the following ratios as report

> A condensed income statement for Simultech Corporation and a partially completed vertical analysis are presented below. Required: 1. Complete the vertical analysis by computing each line item (a)–(f) as a percentage of sales revenues. R

> A condensed balance sheet for Simultech Corporation and a partially completed vertical analysis are presented below. Required: 1. Complete the vertical analysis by computing each line item (a)–(d) as a percentage of total assets. Round

> Use the data given in PA13–1 for Pinnacle Plus. Required: 1. Compute the gross profit percentage in the current and previous years. Round the percentages to one decimal place. Are the current year results better, or worse, than those fo

> Pinnacle Plus declared and paid a cash dividend of $6,600 in the current year. Its comparative financial statements, prepared at December 31, reported the following summarized information: Required: 1. Complete the two final columns shown beside each ite

> Assume the same facts as PA12–4, except for the income statement and additional data item (a). The new income statement is shown below. Instead of item (a) from PA12–4, assume that the company bought new equipment for

> Refer to PA12–4. Required: Complete requirements 1 and 2 using the direct method. Data from PA12-4: Heads Up Company was started several years ago by two hockey instructors. The company’s comparative balance sheets an

> Refer to the information in PA12–2. Required: Prepare the cash flows from operating activities section of the statement of cash flows using the direct method. Data from PA12-2: The income statement and selected balance sheet informatio

> Heads Up Company was started several years ago by two hockey instructors. The company’s comparative balance sheets and income statement follow, along with additional information. Additional Data: a. Bought new hockey equipment for cash,

> All of the following companies manufacture toasters. The following costs were incurred by each company during September: Required: 1. What is the total conversion cost for Warner Co.? 2. What is the total manufacturing overhead for Painted Trails Co.? 3.

> XS Supply Company is developing its annual financial statements at December 31. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: Additional Data: a. Bought e

> The income statement and selected balance sheet information for Direct Products Company for the year ended December 31 are presented below. Required: Prepare the cash flows from operating activities section of the statement of cash flows using the indire

> Motif Furniture is an Austin-based furniture company. For each of the following first-quarter transactions, indicate whether operating (O), investing (I), or financing activities (F) are affected and whether the effect is a cash inflow (+) or outflow (−)

> Citco Company is considering investing up to $500,000 in a sustainability-enhancing project. Its managers have narrowed their choices to three potential projects. ∙ Project A would redesign the production process to recycle raw material

> After completing a long and successful career as senior vice president for a large bank, you are preparing for retirement. After visiting the human resources office, you have found that you have several retirement options to choose from: a. An immediate

> Falcon Crest Aces (FCA), Inc., is considering the purchase of a small plane to use in its wing walking demonstrations and aerial tour business. Various information about the proposed investment follows: Required: Help FCA evaluate this project by calcula

> Hearne Company has a number of potential capital investments. Because these projects vary in nature, initial investment, and time horizon, management is finding it difficult to compare them. Project 1: Retooling Manufacturing Facility This project would

> Beacon Company is considering automating its production facility. The initial investment in automation would be $15 million, and the equipment has a useful life of 10 years with a residual value of $500,000. The company will use straight-line depreciatio

> Balloons By Sunset (BBS) is considering the purchase of two new hot air balloons so that it can expand its desert sunset tours. Various information about the proposed investment follows: Required: Help BBS evaluate this project by calculating each of the

> The following table lists several metrics from the Global Reporting Initiatives’ (GRI) sustainability reporting standards and other industry sources. For each metric, classify it based on its impact on the triple bottom line (People, Pr

> Stem Games manufactures playing cards. It has three departments: Printing, Cutting & Collating, and Wrapping. Transferred-in costs are considered materials costs. The following information is available for the Wrapping department for the month of Oct

> Going Places, Inc., manufactures a variety of luggage for airline passengers. The company has several luggage production divisions, including the Suitable Cases Division, as well as a wholly owned subsidiary, It’s Mine, that manufacture

> Grover Corp. is a manufacturing company that produces golf clubs. Birdie is a division of Grover that manufactures putters. Birdie’s putters are used in Grover’s golf club sets and are sold to other golf wholesalers. C

> Wescott Company has three divisions: A, B, and C. The company has a hurdle rate of 8 percent. Selected operating data for the three divisions are as follows: Wescott is considering an expansion project in the upcoming year that will cost $5 million and r

> The following is partial information for Charleston Company’s most recent year of operation. It manufactures lawn mowers and categorizes its operations into two divisions: Bermuda and Midiron. Required: 1. Without making any calculation

> Coolbrook Company has the following information available for the past year: The company’s hurdle rate is 6 percent. Required: 1. Calculate return on investment (ROI) and residual income for each division for last year 2. Recalculate RO

> Refer to the information in PA9–7 for Rip Tide. Required: Prepare the journal entries to record the following for Rip Tide: 1. Direct materials costs and related variances. 2. Direct labor and related variances. Data from PA9-7: Rip Ti

> Rip Tide Company manufactures surfboards. Its standard cost information follows: Rip Tide has the following actual results for the month of June: Required: Calculate the following for Rip Tide: 1. Direct materials price, quantity, and spending variances.

> Refer to the information in PA9–4 for Bullseye Company. Required: Prepare the journal entries to record the following for Bullseye: 1. Direct materials costs and related variances. Assume the company purchases direct materials as needed

> Refer to the information in PA9–4. Required: Calculate the following for Bullseye: 1. Fixed overhead spending variance. 2. Fixed overhead volume variance. 3. Total over- or underapplied fixed manufacturing overhead. Data from PA9-4: Bu

> Bullseye Company manufactures dartboards. Its standard cost information follows: Bullseye has the following actual results for the month of September: Required: Calculate the following for Bullseye: 1. Direct materials price, quantity, and spending varia

> Canyon Company’s Assembly Department has the following production and manufacturing information for February: Units 28,000 in beginning inventory that are 100 percent complete for materials and 20 percent for conversion. 44,600 units fi

> Refer to the information in PA9–1 for Barley Hopp. Required: Prepare the journal entry to record the following for Barley Hopp: 1. Direct materials costs and related variances. Assume the company purchases direct materials as needed and

> Refer to the information for Barley Hopp in PA9–1. Required: Compute the following for Barley Hopp: 1. Fixed overhead spending variance. 2. Fixed overhead volume variance. 3. Total over- or underapplied fixed manufacturing overhead. Da

> Barley Hopp, Inc., manufactures custom-ordered commemorative beer steins. Its standard cost information follows: Barley Hopp had the following actual results last year: Required: Calculate the following for Barley Hopp: 1. Direct materials price, quantit

> Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information: ∙ Each T-shirt is expected to sel

> Refer to the information presented in PA8–4 regarding Wesley Power Tools. Required: Prepare the following for the first quarter: 1. Cost of goods sold budget. 2. Selling and administrative expense budget. 3. Budgeted income statement fo

> Wesley Power Tools manufactures a wide variety of tools and accessories. One of its more popular items is a cordless power handisaw. Each handisaw sells for $44. Wesley expects the following unit sales: Wesley’s ending finished goods in

> Iguana, Inc., had $10,800 cash on hand on April 1. Of its sales, 80 percent is in cash. Of the credit sales, 50 percent is collected during the month of the sale, and 50 percent is collected during the month following the sale. Of direct materials purcha

> Refer to the information in PA8–1. Required: Prepare Iguana’s budgeted income statement for quarter 2. Data from PA8-1: Iguana, Inc., manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 li

> Iguana, Inc., manufactures bamboo picture frames that sell for $25 each. Each frame requires 4 linear feet of bamboo, which costs $2.00 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $12.00 per hour. Iguana has

> Old Camp Company manufactures awnings for its own line of tents. The company is currently operating at capacity and has received an offer from one of its suppliers to make the 10,000 awnings it needs for $18 each. Old Camp’s costs to make the awning are

> Camino Company manufactures designer to-go coffee cups. Each line of coffee cups is endorsed by a high-profile celebrity and designed with special elements selected by the celebrity. During the most recent year, Camino Company had the following operating

> Chino Company manufactures fabric and clothing. Managers can either sell the unfinished fabric to other clothing manufacturers or incur additional conversion costs to create a finished garment. The costs incurred to produce the unfinished fabric are $400

> Blossom, Inc., is a small company that manufactures three versions of patio tables. Unit information for its products follows: Blossom has determined that it can sell a limited number of each table in the upcoming year. Expected demand for each model fol

> Ben Blum recently graduated from Moonshadow University’s accounting program. He has been hired as an analyst by Primrose Tire Company and one of his first assigned tasks was to evaluate the North East division of Primrose. This division

> The Rosa model of Mohave Corp. is currently manufactured as a very plain umbrella with no decoration. The company is considering changing this product to a much more decorative model by adding a silk-screened design and embellishments. A summary of the e

> Mohave Corp. is considering eliminating a product from its Sand Trap line of beach umbrellas. This collection is aimed at people who spend time on the beach or have an outdoor patio near the beach. Two products, the Indigo and Verde umbrellas, have impre

> Mohave Corp. is considering outsourcing production of the umbrella tote bag included with some of its products. The company has received a bid from a supplier in Vietnam to produce 8,000 units per year for $7.50 each. Mohave has the following information

> Mohave Corp. makes several varieties of beach umbrellas and accessories. It has been approached by a company called Lost Mine Industries about producing a special order for a custom umbrella called the Ultimate Shade (US). The special-order umbrellas wit

> Hoodys for Good manufactures and sells hooded sweatshirts. The company locates its manufacturing facilities in areas with high unemployment rates and provides on-site day care and education for its employees’ children. The company recen

> Pin Cushion Company produces two models of sewing basket. Information about Pin Cushion’s products is given below: Pin Cushion’s fixed costs total $35,200. Required: 1. Determine Pin Cushion’s weighte

> Refer to E3-15 for information regarding Mirada Company. Required: Complete all requirements for E3-15 using the FIFO method of process costing. Data from E3-15: Mirada Company manufactures handheld calculators and has the following information availabl

> Lindstrom Company produces two fountain pen models. Information about its products follows: Lindstrom’s fixed costs total $78,500. Required: 1. Determine Lindstrom’s weighted-average unit contribution margin and weight

> Ramada Company produces one golf cart model. A partially complete table of company costs follows: Required: 1. Complete the table. 2. Ramada sells its carts for $1,200 each. Prepare a contribution margin income statement for each of the three production

> Hawk Homes, Inc., makes one type of birdhouse that it sells for $30 each. Its variable cost is $15 per house, and its fixed costs total $13,840 per year. Hawk currently has the capacity to produce up to 2,000 birdhouses per year, so its relevant range is

> Russell Preston delivers parts for several local auto parts stores. He charges clients $0.75 per mile driven. Russell has determined that if he drives 3,000 miles in a month, his average operating cost is $0.55 per mile. If he drives 4,000 miles in a mon

> Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows: Required: 1. Complete the table. 2. Calculate Hermosa’s contribution margin ratio and its total contribution margin at each sales level in

> Dance Creations manufactures authentic Hawaiian hula skirts that are purchased for traditional Hawaiian celebrations, costume parties, and other functions. During its first year of business, the company incurred the following costs: Dance Creations charg

> Refer to the information for Presidio, Inc., in PA5–4. Additional information for Presidio’s most recent year of operations follows: Required: 1. Without any calculations, explain whether Presidio’s p

> Presidio, Inc., produces one model of mountain bike. Partial information for the company follows: Required: 1. Complete Presidio’s cost data table. 2. Calculate Presidio’s contribution margin ratio and its total contri

> Refer to your solutions for Leslie’s Sporting Goods in PA5–2. Required: 1. Consider the pattern of Leslie’s activity and costs throughout the year. Would you consider this to be a seasonal business? E

> Leslie Sporting Goods is a locally owned store that specializes in printing team jerseys. The majority of its business comes from orders for various local teams and organizations. While Leslie’s prints everything from bowling team jerse

> Mirada Company manufactures handheld calculators and has the following information available for the month of July: Required: Using the weighted-average method of process costing, complete each of the following steps: 1. Reconcile the number of physical

> Garfield Company manufactures a popular brand of dog repellant known as DogGone It, which it sells in gallon-size bottles with a spray attachment. The majority of Garfield’s business comes from orders placed by homeowners who are trying

> In recent years, the managerial concepts of activity-based management (ABM), activity-based costing (ABC), and total quality management (TQM) have received considerable attention from manufacturing and other companies. The development of a global economy

> Keller Company makes two models of battery-operated boats, the Sandy Beach and the Rocky River. Basic production information follows: Keller has monthly overhead of $22,360, which is divided into the following cost pools: The company has also compiled th

> Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production information follows: Harbour has monthly overhead of $175,200, which is divided into the following cost pools: The company has also compiled the following inf

> Carlise has identified the following information about its overhead activity cost pools and the two product lines: Required: 1. Suppose Carlise used a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assi

> Hazelnut Corp. manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has a total of $171,500 in overhead. The company has identified the following information about its overhead activity cost pools and the tw

> Refer to the information in PA3-5 for Glencove Company. Required: Complete all requirements for PA3-5 using the FIFO method. Data from PA3-5: Glencove Co. makes one model of radar gun used by law enforcement officers. All direct materials are added at t

> Glencove Co. makes one model of radar gun used by law enforcement officers. All direct materials are added at the beginning of the manufacturing process. Information for the month of September follows: Required: 1. Using the weighted-average method of pr

> Refer to the information in PA3-3 for Saddleback Company. Required: Complete all requirements for PA3-3 using the FIFO method. Data from PA3-3: Saddleback Company makes camping lanterns using a single production process. All direct materials are added a

> Saddleback Company makes camping lanterns using a single production process. All direct materials are added at the beginning of the manufacturing process. Information for the month of March follows: Required: 1. Using the weighted-average method of proce

> Refer to E3-13 for information regarding Arboles Company. Required: Complete all requirements for E3-13 using the FIFO method of process costing. Data from E3-13: Arboles Company manufactures pencils and has the following information available for the m

> Wilson’s Furniture Company incurs the costs listed in the following table. Required: Use an X to categorize each of the following costs. You may have more than one X for each item.

> Refer to the information for Sandia Corporation in PA3-1. Required: Complete all requirements for PA3-1 using the FIFO method. Data from PA3-1: Sandia Corporation manufactures metal toolboxes. It adds all materials at the beginning of the manufacturing

> Sandia Corporation manufactures metal toolboxes. It adds all materials at the beginning of the manufacturing process. The company has provided the following information: Required: 1. Using the weighted-average method of process costing, complete each of

> Refer to the information in PA2–3 for Tyler Tooling Company. Required: 1. Prepare a journal entry showing the transfer of Job 102 into Finished Goods Inventory upon its completion. 2. Prepare the journal entries to recognize the sales r

> Tyler Tooling Company uses a job order cost system with overhead applied to products on the basis of machine hours. For the upcoming year, the company estimated its total manufacturing overhead cost at $420,000 and total machine hours at 60,000. During t

> Refer to the information presented in PA2–1 for Lamonda Corp. Required: Prepare all of Lamonda’s necessary journal entries for the month of April. Data from PA2-1: Lamonda Corp. uses a job order cost system. On April

> Lamonda Corp. uses a job order cost system. On April 1, the accounts had the following balances: The following transactions occurred during April: a. Purchased materials on account at a cost of $136,000. b. Requisitioned materials at a cost of $122,000,

> Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on the basis of direct labor dollars. At the beginning of the most recent period, the company estimated its total direct labor cost to be $65,000 an

> Amberjack Company is trying to decide on an allocation base to use to assign manufacturing overhead to jobs. The company has always used direct labor hours to assign manufacturing overhead to products, but it is trying to decide whether it should use a d

> The following information was obtained from the records of Appleton Corporation during 2018. - Manufacturing Overhead was applied at a rate of 125 percent of direct labor dollars. . Beginning value of inventory follows: . Beginning Work in Process Invent

> Christopher’s Custom Cabinet Company uses a job order cost system with overhead applied as a percentage of direct labor costs. Inventory balances at the beginning of 2018 follow: The following transactions occurred during January: a. Pu

> Arboles Company manufactures pencils and has the following information available for the month of July: Required: Using the weighted-average method of process costing, complete each of the following steps: 1. Reconcile the number of physical units worked

> Assume that Suzie Whitson (PA1-2) has decided to begin production of her outdoor children’s toy. Her company is Jiffy Jet and costs for last month follow. Required: 1. Identify each of the preceding costs as either a product or a period

> Match each of the terms with the appropriate definition. Not all definitions will be used. Terms: 1. Conversion Costs 2. Differential Costs 3. Indirect Costs 4. Manufacturing Costs 5. Manufacturing Firms 6. Nonmanufacturing Costs 7. Opportunity Costs 8.

> Match each of the terms with the appropriate definition. Not all definition will be used. Terms: 1. Budget 2. Controlling 3. Direct Costs 4. Financial Accounting 5. Fixed Costs 6. General and Administrative Expenses 7. Merchandising Companies 8. Product

> Comparing Financial and Managerial Accounting Match each of the following characteristics that describe financial accounting, managerial accounting, both financial and managerial accounting, or neither financial nor managerial accounting. 1. Is future or

> Mystic Laboratories reported total assets of $11,200,000 and noncurrent assets of $1,480,000. The company also reported a current ratio of 1.5. What amount of current liabilities did the company report?

> A manufacturer reported an inventory turnover ratio of 8.6 last year. During the current year, management introduced a new inventory control system that was expected to reduce average inventory levels by 25 percent without affecting sales volume. Given t