Gourmet Aroma Coffee House has an exclusive contract with Columbia exporters. Two brands of gourmet coffee are imported, Morning Thunder (MT) and Evening Tender (ET). The following data are provided for the current fiscal year: Operating Results MT ET MT ET Price per pound $ 40 $ 80 $ 50 $ 75 Variable cost per pound 20 48 23 53 Sales (in pounds) 3,000 3,000 2,960 4,440 The total market was estimated to be 60,000 pounds at the time of budget. The actual total market for the year is 59,200 pounds. What is the firm's market size variance? (Round your Intermediate percentage answers to nearest whole percent.) Multiple Choice $1,280 unfavorable. $2,080 unfavorable. Budgeted $3,320 unfavorable. www
Q: Below is budgeted production and sales information for Flushing Company for the month of December.…
A: Sales budget :— This budget is prepared tu estimated the budgeted revenue generated during the…
Q: Blossom Industries produces the component parts needed for its popular non-commercial-use drones.…
A: Relevant costs are those costs that change when an alternative is considered or when a decision is…
Q: In each of the following cases, certain qualifying education expenses were paid during the tax year…
A: AOTCAOTC stands for the American opportunity tax credit is a type of credit that is provided for…
Q: Required information [The following information applies to the questions displayed below] Assume…
A: Depreciation is the term for the decline in value of tangible asses brought on by use over the…
Q: Smith Company can produce two types of carpet cleaners, Brighter and Cleaner. Data on these two…
A: Break-even point :— It is the point of production where total cost is equal to total revenue. At…
Q: Escuchar Products, a producer of DVD players, has established a labor standard for its…
A: The variance is the difference between the actual and standard production cost data. The variance…
Q: 29.. Peterson Photoshop sold $1,000 in gift cards on a special promotion on October 15, 2021, and…
A: Deferred revenue is the prepayment made by the customers for goods and services that are yet to be…
Q: Coronado Company's standard labor cost per unit of output is $33.00 (3.00 hours x $11 per hour).…
A: The variances are the differences between the standard costs and the actual costs. If the standard…
Q: Nareh began the year with a tax basis of $26,000 in her partnership interest. Her share of…
A: Answer:- Non-recourse debt:- When a loan is secured by any sort of property, it is known as…
Q: 3. A company had the following accounts and balances at year-end (shown in thousands Cash Accounts…
A: Trial balance is a statement that is prepared using ending balance of ledgers. All the ledgers after…
Q: Coronado Industries began the year with 12 units of marine floats at a cost of $11 each. During the…
A: Weighted Average Method :— It is one of the method of inventory valuation in which it is assumed…
Q: Oroblanco Company has prepared consolidated financial statements for the current year and is now…
A:
Q: Jeff Brown has collected sales data for his cupcake stand. Calculate the weighted moving average…
A: The weighted average method is the method to calculate the value by multiplying the base price by…
Q: Metlock Inc. manufactures cycling equipment. Recently, the vice president of operations of the…
A: Semi-annual interest rate = 6% /2 = 3%Number of periods = 15 Years * 2 = 30 PeriodsSelling price of…
Q: Pizza Planet Corporation (PPC) is a new business that makes a fruit pizza. The business is seasonal…
A: Fixed costs are those costs that do not change with the output levels.In contrast variable costs, in…
Q: Brief Exercise 11-7 Computing Fixed Overhead Variances (LO2- CC11, 12) Primara Corporation has a…
A: The fixed overhead variance can be defined as the result of the difference between the budgeted…
Q: Estimating doubtful accounts Outlaw Bike Co. is a wholesaler of motorcycle supplies. An aging of the…
A: Estimated uncollectible accounts amount :— It is the amount of ending balance of allowance for…
Q: Creative Computing sells a tablet computer called the Protab. The $740 sales price of a Protab…
A: The amount of consideration agreed upon by the parties engaged in a transaction is referred to as…
Q: Entries for uncollectible accounts, using direct write-off method Journalize the following…
A: JOURNAL ENTRYJournal Entry is the First stage of Accounting Process. Journal Entry is the Process of…
Q: R Corporation has a negative current earnings and profits for tax year 20X7 of $15,000.…
A: Dividend is referred as the distribution of the profits of the organization to the shareholders of…
Q: Prepare journal entries to record the following merchandising transactions of Lowe's, which uses the…
A: Perpetual inventory system is that inventory system under which all transactions related to…
Q: Which of the following equations is true? Multiple Choice Dollar sales for company to break even…
A: CVP analysis is used to identify the changes in costs and volume affect a company's operating…
Q: Materials Variances Cinturon Corporation produces high-quality leather belts. The company's plant in…
A: The variance is the difference between the actual and standard production data. The variance can be…
Q: As part of a promotion campaign, Lime Cereal includes one coupon in each issue of various national…
A: Income statement shows company's income and expenses over a period of time.Revenues, Expenses, and…
Q: Determine the amount of the child tax credit in each of the following cases: > Answer is complete…
A: In tax law, modified adjusted gross income (MAGI) is used to establish eligibility for certain…
Q: Problem 4-4B (Algo) Prepare the statement of cash flows (LO4-7) Below is a summary of all…
A: This statement reports all the cash transactions which are responsible for inflow and outflow of…
Q: Rizio Company purchases a machine for $10,100, terms 1/10, n/60, FOB shipping point. Rizio paid…
A: The expenditures incurred related to fixed assets can be categorized as revenue and capital…
Q: Martin Manufacturing has two manufacturing departments, Forming and Painting. The company uses the…
A: WEIGHTED AVERAGE METHOD :— Under this method, equivalent units is calculated by adding equivalent…
Q: The Fence Company is setting up a new production line to create top rails. The relevant data for two…
A: Estimated production cost is the total cost which is estimated based on the position in the market…
Q: Suppose that, on October 24, 2022, a company sells one April 2023 live cattle futures contract. It…
A: A futures contract is a derivative instrument to purchase or sell an underlying asset on a future…
Q: Klyne Corporation manufactures pharmaceutical products that are sold through a network of sales…
A: Break-even point :— It is the point of production where total cost is equal to total revenue. At…
Q: During August, the factory worked only 500 direct labor-hours and produced 2,000 sets of covers. The…
A: Variance is the difference between the expected and actual costs. Simply said, variance is the…
Q: On May 10, Blossom Company sold merchandise for $4,500 and accepted the customer's Best Business…
A: Journal entry is the first stage of accounting process.Journal entry used to record business…
Q: following activity cost pools and activity rates: Activity Cost Pool Supporting direct labor Order…
A: Customer margin means the amount of profit made by selling the goods the customer. It is the margin…
Q: Problem 25-3A (Algo) Sales mix strategies LU P3 Edge Company produces two models of its product with…
A: Variable costs are costs that varies with the change in the level of output.Contribution margin…
Q: Oriole Inc. is preparing its annual budgets for the year ending December 31, 2022. Accounting…
A: Direct material purchase budget :— This budget is prepared to estimate the number of units and cost…
Q: Required information Problem 10-6A (Static) Record equity transactions and prepare the stockholders'…
A: Stockholder's Equity includes issuance of Common Stock, Paid in Capital in Excess of par if shares…
Q: Beginning Balance (BB) Ending Balance (EB) Transferred In (TI) Transferred Out (TO) For Case (A)…
A: The account can be defined as a detailed record providing information about the money received or…
Q: Current Attempt in Progress Pharoah Motels Inc. owns a motel that it had purchased on January 1,…
A: There are many methods to present the assets on the balance sheet of the firm. Under revaluation…
Q: Required: Prepare a direct labor budget for the quarter ending September 30.
A: Direct Labor Budget is an estimation of Direct Labor Expense, to be incurred, for the desired…
Q: Jason Pham earned $10,200 while working for Brown Company. The company's SUTA tax rate is 2.9% of…
A: Total unemployment tax = Total FUTA rate + Total SUTA rateGiven:SUTA rate = 2.9%Payroll = $7,000
Q: On January 1, 2025, Coronado Company issued 10-year, $1,840,000 face value, 6% bonds, at par. Each…
A: The earnings per share which is computed on the basis of convertible securities is classified as…
Q: 37.. The following information pertains to J Company's outstanding stock for 2021: Common stock, $1…
A: The acronym EPS stands for "basic earnings per share," which refers to the entire amount of net…
Q: Data table Date Nov. 1 Nov. 6 Nov. 8 Nov. 17 Nov. 30 Item Balance Sale Purchase Sale Sale Quantity…
A: LIFO Method -This is the method of inventory valuation. Under this method inventory purchased latest…
Q: Drake Manufacturing has the following budgeted data for its two production departments. Assembly…
A: Single plant wide overhead rate is a single rate determined to allocate overhead. It is also known…
Q: Gold Inc. sold the rights to use one of its patented processes that will result in cash receipts of…
A: Present Value is the Value of one Dollar as of today which will be received in Future. For the…
Q: Prepare an amortization schedule that would be suitable for the lessee for the lease term. (Round…
A: A lease is a legally written arrangement. In this agreement the lessor (the person who owns the…
Q: 4- Calculate the below variance: Static Budget 12000 1,620,000 312,000 264,000 306,000 Sales volume…
A: The variance is the difference between the actual cost data and budgeted production data. The…
Q: Alvin Jackson Co. issued $10,000 of bonds on January 1, 2021. The bonds pay interest semi-annually.…
A: The bonds are issued at discount when market rate is higher than the coupon rate of bonds payable.…
Q: Alex is paid semi-monthly. He earns $922 every pay period. The list shows his expenses: Rent:…
A: The monthly budget may be prepared for an individual or an entity. An individual prepares a monthly…
Step by step
Solved in 3 steps
- A. Genesis Company is a wholesaler. It purchases 60,000 units of Product X per month for sale to retailers. The cost of placing an order is P100. The cost of holding one unit of inventory for one year is P4. Required: 1. Compute the economic order quantity. 2. How many orders would be placed under the EOQ policy? 3. Compute the annual ordering cost for the EOQ. 4. Compute the annual carrying cost for the EOQ. 5. Compute the total inventory-related cost at the EOQ. 6. Previously, the company had been purchasing 5,000 units of product X per order: What is the ordering cost per year under the previous policy? ii. The annual carrying cost? iii. How much money does the company save over the policy of purchasing 5,000 units per order using the EOQ policy? i. B. Kings Company presents the following information: 1. Annual credit sales: P 25,200,000 2. Collection period: 3 months 3. Rate of return: 12% Kings company considers changing its credit term from n/30 to 3/10, 1/30. The following are…Caldwell Supply, a wholesaler, has determined that its operations have three primary activities: purchasing, warehousing, and distributing. The firm reports the following operating data for the year just completed: Caldwell buys 100, 100 units at an average unit cost of $11 and sells them at an average unit price of $21. The firm also has fixed operating costs of $250,100 for the year. Caldwell's customers are demanding a 11% discount for the coming year. The company expects to sell the same amount if the demand for price reduction can be met. Caldwell's suppliers, however, are willing to give only a 3% discount. Required: Caldwell has estimated that it can reduce the number of purchase orders to 690 and can decrease the cost of each shipment by $4 with minor changes in its operations. Any further cost savings must come from reengineering the warehousing processes. What is the maximum cost (i.e., target cost) for warehousing if the firm desires to earn the same amount of profit next…Healthy Plants Ltd. (HP) produces its premium plantfood in 50-pound bags. Demand for the product is 100,000pounds per week. HP operates 50 weeks per year and canproduce 250,000 pounds per week. The setup cost is $200and the annual holding cost rate is $0.55 per bag. Currently,HP produces its premium plant food in batches of 1,000,000pounds.(a) Calculate the maximum inventory level for HP.(b) Calculate the total annual costs of this operating policy.
- A merchandising company sells a particular product that is estimated to have approximately 1,500 sales this year. The purchasing department estimates that it will cost approximately $200 to place an order for this product: $180 fixed and $20 variable. The total annual carrying cost for this product is $1,500. What is the product’s EOQ? A. 775 B. 19 C. 735 D. 20A microbrewery purchases malt for production. The supplier charges $35 for delivery (no matter how much is delivered) and $1.20 per gallon. The annual holding cost is 35% of the price per gallon. Usage is 250 gallons/week. a) If the order quantity is 1000 gallons, what is the average inventory? b) If the order quantity is 1500 gallons, how many orders are placed each year? c) What is the EOQ quantity? d) If the order quantity is 2500 gallons, what is the sum of the ordering and holding costs PER GALLON? e) If orders are for the EOQ amount, what is the annual cost of the inventory system as a percentage of the annual purchase cost? f)If orders must be in integer multiples of 1000 gallons, how much should be ordered to minimize ordering and holding costs PER GALLON? g) A 3% purchase price discount is given if orders are for 8000 gallons or more. What would total annual costs (purchasing, ordering, and holding) be using this discount?TS Co has daily demand for ball bearings of 40 a day for each of the 250 working days (50 weeks) of the year. The ball bearings are purchased from a local supplier for $2 each. The cost of placing an order is $64 per order, regardless of the size of the order. The inventory holding costs, expressed as a percentage of inventory purchase price, is 25% per annum. What is the economic order quantity?
- A supermarket uses a supplier for its bottled water. The annual demand for this product is 24000 units. The supermarket purchases bottled water from its supplier at a price of $0.8 per bottle. The holding cost per of water per year is $0.4. The ordering cost for the supermarket is $80 per order and the lead time is 2 days. The company operates 250 days a year. The supermarket uses Economic Order Quantity model to manage its inventories. a).What is the inventory cycle time(time between orders)?Edward Food Processing Company is a wholesale distributor of biscuits in Holborn. The Company has achieved steady growth over the past few years while Biscuit prices have been on the increase. The Company is planning its budget for the next financial year. Presented below are the data used to project the current year’s after- tax income of $110,400. £ Average Sales Price per Box 4.00 Average variable costs per Box Cost of Biscuits 2.00Profit on sale 0.40 Total 2.40 Annual fixed cost Selling 160,000 Administrative 280,000 Total 440.000 Expected annual sales volume (390,000 boxes) $1,560,000 Tax rate…Edward Food Processing Company is a wholesale distributor of biscuits in Holborn. The Company has achieved steady growth over the past few years while Biscuit prices have been on the increase. The Company is planning its budget for the next financial year. Presented below are the data used to project the current year’s after- tax income of $110,400. £ Average Sales Price per Box 4.00 Average variable costs per BoxCost of Biscuits 2.00 Profit on sale 0.40Total 2.40 Annual fixed cost Selling 160,000Administrative 280,000Total…
- A company produces motor bikes. It needs 5400 tires every year. It buys tires from a supplier for OMR 20 per tire. The company’s inventory carrying cost is estimated to be 20% of purchase cost and the ordering cost is OMR 50 per order. Calculate: (A) Economic Ordering Quantity. (B) Minimum total inventory cost per year. (C) Ordering quantity for each month (D) Average inventory at any time (E) Optimum order interval (F) Write complete conclusionThe Titan Company provides you with the following information for the current year: Revenues = $2,000,000Cost of goods sold = $750,000 (2/3 of this amount varies with the number of units produced)S&A costs = $200,000 (1/2 of this amount is fixed)Selling price = $40 per unit The company sold 50,000 units of their product in the current year. The company expects unit sales of their product to increase 20% in the next year. Based on the information above, what would be the expected increase to profit before taxes in the coming year?Required information [The following information applies to the questions displayed below.] Shadee Corporation expects to sell 540 sun shades in May and 440 in June. Each shade sells for $144. Shadee's beginning and ending finished goods inventories for May are 80 and 45 shades, respectively. Ending finished goods inventory for June will be 60 shades. Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $12 per hour. Additionally, Shadee's fixed manufacturing overhead is $12,000 per month, and variable manufacturing overhead is $10 per unit produced. Required: 1. Prepare Shadee's direct labor budget for May and June. Show Transcribed Text Prepare Shadee's direct labor budget for May and June. Note: Do not round your intermediate calculations. Round your answers to 2 decimal places. Budgeted Direct Labor Cost May Show Transcribed Text 2. Prepare Shadee's manufacturing overhead budget for May and June. Show Transcribed Text June Budgeted…