The following information is available for the first month of operations of Bahadir Company, a manufacturer of mechanical pencils:
Sales $792,000
Gross profit $462,000
Cost of goods manufactured $396,000
Indirect labor $171,600
Factory deprecation $26,400
Materials purchased $244,200
Total manufacturing costs for the period $244,200
Materials inventory, ending $33,000
Using the information given, determine the following missing amounts:
Cost of goods sold
Finished goods inventory at the end of the month
Direct materials cost
Direct labor cost
Work in process inventory at the end of the month

Answer: See explanation

Explanation:

a. Cost of goods sold

This will be:

= Sales - Gross profit

= $792,000 - $462,000

= $330,000

b. Finished goods inventory at the end of the month.

This will be:

= Cost of goods manufactured - Cost of goods sold

= $396000 - $330000

= $66000

c. Direct materials cost

This will be:

= Materials purchased - Material inventory ending

= $244200 - $33000

= $211200

d. Direct labor cost

This will be:

= Manufacturing cost - Direct materials - Overhead

= $455400 - $211200 - $198000

= $46200

e. Work in process inventory at the end of the month

This will be:

= $455400 - $396000

= $59400

Note that:

Overhead cost= Indirect labor cost + Depreciation

= $171600 + $26400

= $298000

Victoria Company reports the following operating results for the month of April.

VICTORIA COMPANY
CVP Income Statement
For the Month Ended April 30, 2020

Total

Per Unit

Sales (9,000 units) $450,000 $50
Variable costs 225,000 25.00
Contribution margin 225,000 $25.00
Fixed expenses 184,950
Net income $40,050

Management is considering the following course of action to increase net income: Reduce the selling price by 5%, with no changes to unit variable costs or fixed costs. Management is confident that this change will increase unit sales by 20%.

Using the contribution margin technique, compute the break-even point in units and dollars and margin of safety in dollars: (Round intermediate calculations to 4 decimal places e.g. 0.2522 and final answer to 0 decimal places, e.g. 2,510.)

(a) Assuming no changes to selling price or costs.

Break-even point
Enter a number of units

units
Break-even point
$Enter a dollar amount

Margin of safety
$Enter a dollar amount


(b1) Assuming changes to sales price and volume as described above.

Break-even point
Enter a number of units

units
Break-even point
$Enter a dollar amount

Margin of safety
$Enter a dollar amount

If a business wants to open in a new country, when would it be the best time to do that on the Business Cycle? Why?

The following data relate to the Torrence Company for May and August:

May August
Maintenance hours 25,000 29,000
Maintenance cost $1,175,000 $1,247,000

May and August were the lowest and highest activity levels, and Torrence uses the high-low method to analyze cost behavior. If maintenance hours are estimated to be 26,000 hours in October, which of the following statements is true?

a. Total maintenance costs will be $1,182,000.
b. Total maintenance costs will be $1,193,000.
c. Total maintenance costs will be $1,247,000.
d. Total maintenance costs will be $1,221,000.
e. Total maintenance costs will be $1,175,000.

Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $81,400. The machine's useful life is estimated at 20 years, or 387,000 units of product, with a $4,000 salvage value. During its second year, the machine produces 32,700 units of product.

Required:
Determine the machine's second-year depreciation using the double-declining balance method.

What are the three classes or elements of Real Property

On June 3, Carla Company sold to Chester Company merchandise having a sale price of $3,800 with terms of 4/10, n/60, f.o.b. shipping point. An invoice totaling $91, terms n/30, was received by Chester on June 8 from John Booth Transport Service for the freight cost. On June 12, the company received a check for the balance due from Chester Company.

Required:
Prepare journal entries on the Pronghorn Company books to record all the events noted above under each of the following bases.

a. Sales and receivables are entered at gross selling price.
b. Sales and receivables are entered at net of cash discounts.

7 the follow table contains the demand from the last 10 months :

LBSC, Inc., operates a milk processing plant in Kenosha, Wisconsin. Its union, the Brotherhood of Food Processing Workers (BFPW), represents all nonsupervisory production employees in the facility. The contract between LBSC and BFPW expires in six months, so LBSC must start to prepare for the negotiations. LBSC’s HR department plans to conduct a number of management meetings asking for feedback on the appropriate goals of bargaining, and to ask the finance department to estimate the acceptable cost profile for the term of the next contract. It will gather information on plant average seniority and inventory levels, and forecast customer demand. It will analyze grievances and find out what it can do about the course of other recent negotiations for the BFPW. Its finance department will estimate the costs of one additional holiday and a 401(k) plan. Finally, it will decide how much latitude it will have to make concessions and what will have to be referred to the corporate office before it can be approved. This activity is important because the outcome of contract negotiations can have a major impact on the ability of a company to meet its competitive challenges.

Match scenarios to each of the seven steps management should take in preparing to negotiate.

a. Analyze grievances
b. Gather seniority and inventory into.
c. Determine the authority of the bargaining team.
d. Conduct management meetings
e. Determine cost of a new holiday

1. Establishing Inter departmental contract objectives.
2. Preparing and analyzing data.
3. Anticipating union demands.
4. Establishing the cost of potential union demands.
5. Determining strategy and logistics.

Cost-volume-profit analysis can also be used in making personal financial decisions. For example, the purchase of a new car is one of your biggest personal expenditures. It is important that you carefully analyze your options. Suppose that you are considering the purchase of a hybrid vehicle. Let’s assume the following facts. The hybrid will initially cost an additional $4,500 above the cost of a traditional vehicle. The hybrid will get 30 miles per gallon of gas, and the traditional car will get 20 miles per gallon. Also, assume that the cost of gas is $1.80 per gallon. Using the facts above, answer the following questions.

a. What is the variable gasoline cost of going one mile in the hybrid car?
b. What is the variable cost of going one mile in the traditional car?

You should indicate that you are available for an interview in which part of a cover letter?


in the final paragraph

in the second paragraph

in the third paragraph

in the first paragraph

Tanya has money that she wants to leave to her grandchildren after she dies, but she doesn't want them to have to pay an inheritance tax. What
is the BEST way for Tanya to leave money to her grandchildren tax-free?
OA. Put all of her money into a 401k.
OB. Start gifting each of them $15,000 per year now.
OC. Put all of her money into stocks and bonds.
OD Start gifting each of them $25,000 per year now.

money is what money does discuss
​

which layer of the atmosphere provide rainwater to the planet​

An asset was sold during the year. The cost of the asset was $64,500. The asset was depreciated for four years, using the straight-line method at 10% per annum. The proceeds from the sale of this asset was $38,700. What was the gain or loss on the asset, if any?

Michigan State Figurine Inc. (MSF) sells crystal figurines to Spartan fans. MSF buys the figurines from a manufacturer for $10 per unit. They send orders electronically to the manufacturer, costing $20 per order and they experience an average lead time of 8 days for each order to arrive from the manufacturer. Their inventory carrying cost is 20%. The average daily demand for the figurines is 2 units per day. They are open for business 250 days a year. Answer the following questions:

Required:
a. How many units should the firm order each time? Assume there is no uncertainty at all about the demand or the lead time.
b. How many orders will it place in a year?
c. What is the average inventory?
d. What is the annual ordering cost?
e. What is the annual inventory carrying cost?

Calculate the unit product cost under absorption costing using the following information.
Direct materials: $50/unit
Direct labor: $75/Unit
Variable manufacturing overhead:$27/Unit
Fixed manufacturing overhead: $30,000
Units produced: 10,000
Units sold: 6,000

Appliance Center is an experienced home appliance dealer. Appliance Center also offers a number of services for the home appliances that it sells. Assume that Appliance Center sells ovens on a standalone basis. Appliance Center also sells installation services and maintenance services for ovens. However, Appliance Center does not offer installation or maintenance services to customers who buy ovens from other vendors. Pricing for ovens is as follows.

Oven only $800
Oven with installation service 850
Oven with maintenance services 975
Oven with installation and maintenance services 1,000

In each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at $175. Additionally, the incremental amount charged by Appliance Center for installation approximates the amount charged by independent third parties. Ovens are sold subject to a general right of return. If a customer purchases an oven with installation and/or maintenance services, in the event Appliance Center does not complete the service satisfactorily, the customer is only entitled to a refund of the portion of the fee that exceeds $800.

a. Assume that a customer purchases an oven with both installation and maintenance services for $1,000. Based on its experience, Appliance Center believes that it is probable that the installation of the equipment will be performed satisfactorily to the customer. Assume that the maintenance services are priced separately (i.e., the three components are distinct).

b. Identify the separate performance obligations related to the Appliance Center revenue arrangement.

Select from the option list provided the most likely classification(s) of net assets, if any, that are affected by each transaction of a not-for-profit entity. The entity reports the minimum required classes of net assets. Each choice may be used once, more than once, or not at all.

1. Legally restricted gains.
2. Expenses reported by functional classification.
3. Contributions of services that do not create or enhance nonfinancial assets or require special skills.
4. Costs of collection items not capitalized by the NFP.
5. Board-designated endowment.
6. Expenses reported by natural classification.
7. Conditional promise to give if the barrier has not been overcome.
8. Unconditional promises to give cash with amounts due in future periods.
9. Receipt of a gift restricted to acquisition of a long-lived asset that has been placed in service. The entity chooses to imply a time restriction over the life of the asset.
10. Investment return on a donor-restricted perpetual endowment fund with no donor restriction on the investment return, which has not been appropriated by the governing board.
11. Losses on an underwater endowment fund.

a. Net Assets without Donor Restrictions
b. Net Assets with Donor Restrictions
c. Net Assets without Donor Restrictions or Net Assets with Donor Restrictions
d. Temporarily Restricted Net Assets
e. Permanently Restricted Net Assets
f. No Effect on Net Assets

Cullumber Warehouse distributes hardback books to retail stores and extends credit terms of 4/10, n/30 to all of its customers. During the month of June, the following merchandising transactions occurred.

June
1 Purchased books on account for $3,065 (including freight) from Catlin Publishers, terms 4/10, n/30.
3 Sold books on account to Garfunkel Bookstore for $1,000. The cost of the merchandise sold was $850.
6 Received $65 credit for books returned to Catlin Publishers.
9 Paid Catlin Publishers in full.
15 Received payment in full from Garfunkel Bookstore.
17 Sold books on account to Bell Tower for $1,750, terms of 4/10, n/30. The cost of the merchandise sold was $950.
20 Purchased books on account for $900 from Priceless Book Publishers, terms 1/15, n/30.
24 Received payment in full, less discount from Bell Tower.
26 Paid Priceless Book Publishers in full.
28 Sold books on account to General Bookstore for $2,950. The cost of the merchandise sold was $920.
30 Granted General Bookstore $240 credit for books returned costing $55.

Required:
Journalize the transactions for the month of June for Powell Warehouse, using a perpetual inventory system.

The Clemson Company reported the following results last year for the manufacture and sale of one of its products known as a Tam.

Sales (6,500 Tams at $130 each) $845,000
Variable cost of sales 390,000
Variable distribution costs 65,000
Fixed advertising expense 275,000
Salary of product line manager 25,000
Fixed manufacturing overhead 145,000
Net loss ($55,000)

Clemson Company is trying to determine whether or not to discontinue the manufacture and sale of Tams. The operating results reported above for last year are expected to continue in the foreseeable future if the product is not dropped. The fixed manufacturing overhead represents the costs of production facilities and equipment that the Tam product shares with other products. Assume that discontinuing the Tam product would result in a $120,000 increase in the contribution margin of other product lines.

Required:
How many Tams would have to be sold next year for the company to be as well off as if it just dropped the line and enjoyed the increase in contribution margin from other products?

The Food Max grocery store sells three brands of milk in half-gallon cartons—its own brand, a local dairy brand, and a national brand. The profit from its own brand is $0.97 per carton, the profit from the local dairy brand is $0.83 per carton, and the profit from the national brand is SO.69 per carton. The total refrigerated shelf space allotted to half-gallon cartons of milk is 36 square feet per week. A half-gallon carton takes up 16 square inches of shelf space. The store manager knows
that each week Food Max always sells more of the national brand than of the local dairy brand and its own brand combined and at least three times as much of the national brand as its own brand. In addition, the local dairy can supply only 10 dozen cartons per week. The store manager wants to know how many half-gallon cartons of each brand to stock each week in order to maximize profit.

a. Formulate a linear programming model for this problem.
b. Solve this model by using the computer.

On January 1, 2017, Doone Corporation acquired 70 percent of the outstanding voting stock of Rockne Company for $378,000 consideration. At the acquisition date, the fair value of the 30 percent noncontrolling interest was $162,000 and Rockne's assets and liabilities had a collective net fair value of $540,000. Doone uses the equity method in its internal records to account for its investment in Rockne. Rockne reports net income of $160,000 in 2018. Since being acquired, Rockne has regularly supplied inventory to Doone at 25 percent more than cost. Sales to Doone amounted to $220,000 in 2017 and $320,000 in 2018. Approximately 40 percent of the inventory purchased during any one year is not used until the following year.

Part A:

What is the noncontrolling interest's share of Rockne's 2018 income?

Noncontrolling interest's share
Part B:

Prepare Doone's 2018 consolidation entries required by the intra-entity inventory transfers:(Prepare entry *G, TI, and G)

Camping Out Co. manufactures down sleeping bags:

a. The standard to make one sleeping bag is 4 pounds of down and takes 0.3 hours of direct labor.
b. The standard cost of the down used by Camping Out is $8 per pound and the standard labor cost is $10 per hour.
c. During the year, Camping Out purchased and actually used 15,000 pounds of down for $120,750.
d. During the year, the company manufactured 4,000 sleeping bags.
e. Payroll reported a total of 1,480 direct labor hours at a cost of $14,060.

Required:
a. Compute the total material variance, the material price variance, and the materials quantity variance, also indicate whether each variance is favorable or unfavorable.
b. Compute the total labor variance, the labor price variance, and the labor quantity variance, also indicate whether each variance is favorable or unfavorable.

Rovinsky Corporation, a company that produces and sells a single product, has provided its contribution format income statement for November.

Sales (6,900 units) $400,200
Variable expenses 262,200
Contribution margin 138,000
Fixed expenses 103,500
Net operating income $34,500

If the company sells 6,800 units, its net operating income should be closest to:________

a. $33,979
b. $32,500
c. $34,500

These financial statement items are for Riverbed Company at year-end, July 31, 2022.

Salaries and wages payable $1,800 Notes payable (long-term) $1,700
Salaries and wages expense 52,000 Cash 14,800
Utilities expense 22,600 Accounts receivable 10,700
Equipment 31,500 Accumulated depreciation-equipment 6,500
Accounts payable 4,600 Dividends 4,300
Service revenue 61,900 Depreciation expense 3,500
Rent revenue 8,500 Retained earnings (beginning of the year) 22,000
Common stock 32,400

Required:
Prepare an income statement for the year.

E-Z-Rest Motel is a motel with 216 rooms located in the center of a large city in Mississippi. It is readily accessible from two interstate highways and three major State highways. The motel solicits patronage from outside Mississippi through various national advertising media, including magazines of national circulation. It accepts convention trade from outside Mississippi. and approximately 75 percent of its registered guests are from out of State Y. An action under the Federal Civil Rights Act and the Commerce Clause has been brought against E-Z-Rest Motel alleging that the motel discriminates on the basis of race and color. The motel contends that the federal law cannot be applied to it because it is not engaged in interstate commerce. Can the Federal government regulate this activity under the Interstate Commerce Clause? Why?

Victorinox is the name of the company that manufactures Swiss army knives. The _____ channel the company utilizes to get its knives to market is to wholesalers, than to retailers, and finally to consumers.

promotional
service
consumer
industrial
distribution

Wixis Cabinets makes custom wooden cabinets for high-end stereo systems from specialty woods. The company uses a job-order costing system. The capacity of the plant is determined by the capacity of its constraint, which is time on the automated bandsaw that makes finely beveled cuts in wood according to the preprogrammed specifications of each cabinet. The bandsaw can operate up to 181 hours per month. The estimated total manufacturing overhead cost at capacity is $14,480 per month. The company bases its predetermined overhead rate on capacity, so its predetermined overhead rate is $80 per hour of bandsaw use.
The results of a recent monthâs operations appear below:


Sales $ 43,780
Beginning inventories $ 0
Ending inventories $ 0
Direct materials $ 5,350
Direct labor $ 8,820
Manufacturing overhead incurred $ 14,300
Selling and administrative expense $ 8,160
Actual hours of bandsaw use 151
Required:

1-a. Prepare an income statement that records the cost of unused capacity on the income statement as a period expense.

1-b. How much of the cost of unused capacity can be shown on the income statement as a period expense?

Hassick Corporation produces and sells a single product whose contribution margin ratio is 63%. The company's monthly fixed expense is $460,530 and the company's monthly target profit is $19,000. The dollar sales to attain that target profit is closest to:

Retailing is one area where technology is unlikely to make a big difference in how services are provided.


t or f