often sells a certain graphite fishing rod internally to the Deep Sea division for $40 per rod to cover variable costs. The Basic division also sells the same graphite rod to outside customers for $50
Q: Use the following information for questions 6 and On December 31, 2018, Garnel Co. is in financial d...
A: Net book value of the Equipment = Original cost - Accumulated depreciation Gain (loss) on the dispos...
Q: The CFA franc devalues. The CFA franc was defined in terms of the French franc (FF) as CFA 50 = FF 1...
A: Solution Concept Currency appreciation means the increase in the value of currency in respect to the...
Q: April May June Manufacturing costs* $156,800 $195,200 $217,600 Insurance expense** 1,000 1,000 1,000...
A: Solution Cash budget is a document produced to help a business manage their cash flows.
Q: YES Partnership started operations on January 1 , 2016 with the following capital balances : Yves P8...
A: Profit Sharing Ratio (PSR) is the ratio in which partners distribute their Profits and Losses and ot...
Q: 7. Masonry such as concrete hollow blocks (CHB) is a very popular building material in the Philippin...
A: Cost Accounting: Cost accounting is characterized as "a methodical arrangement of strategies for rec...
Q: IBM purchased computer chips from Toshiba, a Japanese electronics concern, and was billed ¥250 milli...
A: Given details: IBM has ¥250 million payable in 3 months from now Current spot rate is 1$ = ¥105 3 mo...
Q: Jones Corporation borrowed P80,000 from Brown Corporation on Jan 1,1993 and P12,000 on Jan 1, 1995. ...
A: The answer is stated below:
Q: Cash Flows from Operating Activities-Indirect Method The net income reported on the income statement...
A: Cash flow statement provided information about the cash inflows and cash outflows of the company. Ca...
Q: On July 1, 2022, an auditing firm obtained a three-year 10% note receivable for auditing services re...
A: Issue price of the note = Present value of principal + Present value of interest payments where, ...
Q: Choose
A:
Q: Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur i...
A: Sales means the amount recorded in books as revenue earned by selling the goods or services. Account...
Q: YNA Inc. operates a jewelry store. On the morning of February 14, an inventory was conducted after d...
A:
Q: P21.2 (LO 2, 4) (Lessee Entries and Statement of Financial Position Presentation) On January 1, 2022...
A: Lease It is a relation among two parties i.e. lessor and the lessee, In which the lessor allows to u...
Q: What should be the reported amount of inventory on December 31, 2021? Eisha Company conducted a phys...
A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to...
Q: Nicki Fenty Corporation manufactures a variety of beauty products in several departments and evalua...
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve first three sub...
Q: Please see the picture below. I need help making a retained earnings statement, a balance sheet, a c...
A: Profit margin = Net Income / Sale x 100 Gross margin = Gross Profit / Sales x100
Q: Eisha Company conducted a physical count on December 31, 2021 which showed inventory with a total co...
A: Under FOB destination, titles of goods are transferred to the buyer only when goods are delivered to...
Q: The following are various cash flows and other information for Smyczek Company: a. Payments of inter...
A: Cash flows from operating activities: It is a section of Statement of cash flow that explains the so...
Q: (a) Find the missing numbers in the table if the markup is based on cost. RM Cost 50 Markup Selling ...
A: Solution Note Dear student as per the Q&A guideline we are required to answer the first question...
Q: On January 1, Year 1, Kennard Co. issued $2,000,000, 5%, 10-year bonds, with interest payable on Jun...
A:
Q: The journal entry needed to record P5,000 of advertising for Westwood Manufacturing would include: O...
A: Solution A Journal is a company's official book in which all business transactions are recorded in c...
Q: HANDOUT PROBLEM for CURRENT LIABILITIES I. Prepare journal entries for the following transactions wh...
A: To keep records of cash transactions, journal entries are used. To create a journal entry, you join ...
Q: Sarah Jones earns $555 per week selling life insurance for Farmer's Insurance plus 6% of sales over ...
A: Solution: Sarah earnings = weekly salary*4 + 4% of excess sales = 555*4 + (24000-5750)*4% = 2220 + 7...
Q: Beauty Supplies Company manufactures and sells several ranges of artwork. The average revenue and co...
A: Cost volume profit analysis is the technique used by the management for decision-making. The methods...
Q: Selected data concerning the past year’s operations of the Beachwear Manufacturing Company are as fo...
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for you...
Q: 1 Aug Started business with $150, 000 in the bank 3 Aug Bought supplies on c...
A: Introduction:- The act of recording or keeping track of any financial or non-financial action is kno...
Q: The unearned rent account has a balance of P36,000. If P4,000 of the P36,000 is unearned at the end ...
A: Answer) Journal Entry Accounting Titles Debit Credit Unearned Rent Reve...
Q: When the effective interest method is used, the amortization of the bond premium decreases interest ...
A: Lets understand the basics. For amortization of premium and discount, there are two methods which ar...
Q: yo Company started 2022 with P94,000 of merchandise inventory on hand. During 2022, P400,000 in merc...
A: Solution Concept Under gross method the amount is recorded at the price gross of discounts We do not...
Q: How much is the cost of goods sold using the specific identification method of inventory valuation? ...
A: No. of units sold = Total no. of units available for sale - Ending inventory units
Q: Angela Corporation (a private company) acquired all of the outstanding voting stock of Eddy Tech, In...
A: A consolidated financial financial statement that includes all of the divisions or subsidiaries of a...
Q: For each of the following errors in property, plant and equipment accounts, indicate a specific inte...
A: Internal Control System The main intention to implement the internal control system to reduce the er...
Q: Boeing Truck Company received an invoice showing 12 tires at $114 each, 15 tires at $157 each, and 1...
A: An account payable is defined as the amount a business owed for purchases they made on credit. they ...
Q: How much of the following is gross income subject to income tax?
A: Answer: Calculation of gross income: Particulars Amount Cancellation of indebtness of service...
Q: You are assigned to prepare the financial statements of LIVA Company for the year 2021. The followin...
A: Calculation of Ending Inventory at Retail Ending Inventory at Retail = Ending Inventory at Cost/ Cos...
Q: The actual cash received from cash sales was $14,953 and the amount indicated by the cash register t...
A: Theory part: Journalizing: Each and every business transactions are recorded in Journal books. Anoth...
Q: The following tables contain financial statements for Dynastatics Corporation. Although the company ...
A: Solution Balance sheet is a statement of business assets , liabilities and owners equity as of any ...
Q: How much shall be reported as interest income for 2022? ALVR Digital Bank granted a loan to a client...
A: Interest Income - It is the amount of money paid by the borrower over and above the loan amount to t...
Q: What is the carrying amount of the note as of December 31, 2022? On January 1, 2022. TGIG sold equip...
A: Carrying amount of the Note = Present value of the annual instalments where, Present value of the an...
Q: asneet Corporation’s comparative balance sheet for current assets and liabilities was as follows: ...
A: Solution: Adjusting net income for changes in operating assets and liabilities gives the Net cash fl...
Q: Data concerning Runnells Corporation's single product appear below: Per Unit % of Sales Selling Pric...
A: Marginal Costing - Marginal Costing is the method of computing operating profit by bifurcating varia...
Q: Indicate whether each of the following expenditure items should be classified as a function (F), org...
A: The classification of the expenditure is based on their characteristic . Where the expenditure is do...
Q: Karishtha Company have a plan to sell 10,000 shirts at $15 each in the coming year. Product costs in...
A: Cost volume profit analysis is the technique used by the management for decision-making. The methods...
Q: da loa er 31,
A: Interest Income - It is the amount of money paid by the borrower over and above the loan amount to t...
Q: How do I verify that Harlows actual cost figures are correct?
A: Total Cost=Direct material+Direct labor+Variable Overhead+Fixed Overhead
Q: The following information is extracted from the shareholders' equity section of the statement of fin...
A: The calculation of Book Value of Preferred and Common shares is shown hereunder : Liquidation value ...
Q: Demo Consulting is a consulting firm owned and operated by Jesse Flatt. The following end-of-period ...
A: Net Income = Total Revenue - Total expense Retained earnings , ending balance = Retained earnings , ...
Q: Case Study [to be submitted in an excel sheet. Attached] Accenture PLC is a multinational profession...
A: Journal Entry - It is record of every business transaction in day to day life whether it is economic...
Q: Lionel is an unmarried law student at State University Law School, a qualified educational instituti...
A: Single Filers: Single filers are citizens who record their government's annual assessment forms with...
Q: count on all
A: In the rate of 3.5% conversion rate, new confirmed booking as, = 3.5 % of 2347892 = 82176
- Matuku’s Fishing Supplies has two divisions, Basic and Deep Sea. Each division manager is evaluated based on profit produced by each division. The Basic division often sells a certain graphite fishing rod internally to the Deep Sea division for $40 per rod to cover variable costs. The Basic division also sells the same graphite rod to outside customers for $50 per rod. The Deep Sea division manager has the option of purchasing a similar rod from an outside supplier for $45.
Required (show your workings for each question):
Using the general transfer pricing rule, calculate the optimal transfer price assuming the Basic division is operating below capacity.
Step by step
Solved in 3 steps with 3 images
- Oat Treats manufactures various types of cereal bars featuring oats. Simmons Cereal Company has approached Oat Treats with a proposal to sell the company its top selling oat cereal bar at a price of $27,500 for 20,000 bars. The costs shown are associated with production of 20,000 oat bars currently. The manufacturing overhead consists of $3,000 of variable costs with the balance being allocated to fixed costs. Should Oat Treats make or buy the oat bars?Reubens Deli currently makes rolls for deli sandwiches it produces. It uses 30,000 rolls annually in the production of deli sandwiches. The costs to make the rolls are: A potential supplier has offered to sell Reuben the rolls for $0.90 each. If the rolls are purchased, 30% of the fixed overhead could be avoided, If Reuben accepts the offer, what will the effect on profit be?Kelson Sporting Equipment, Inc., makes two types of baseball gloves: a regular model and a catchers model. The firm has 900 hours of production time available in its cutting and sewing department, 300 hours available in its finishing department, and 100 hours available in its packaging and shipping department. The production time requirements and the profit contribution per glove are given in the following table: Assuming that the company is interested in maximizing the total profit contribution, answer the following: a. What is the linear programming model for this problem? b. Develop a spreadsheet model and find the optimal solution using Excel Solver. How many of each model should Kelson manufacture? c. What is the total profit contribution Kelson can earn with the optimal production quantities? d. How many hours of production time will be scheduled in each department? e. What is the slack time in each department?
- Man OFort Inc. produces two different styles of door handles, standard and curved. The door handles go through a joint production molding process costing 29,000 per batch and producing 2,000 standard door handles and 1,000 curved door handles at the split-off point. Both door handles undergo additional production processes after the split-off point, but could be sold at that point: the standard style for 4 per door handle and the curved style for 2 per door handle. Determine the amount of joint production costs allocated to each style of door handle using the market value at split-off method.Boston Executive. Inc., produces executive limousines and currently manufactures the mini-bar inset at these costs: The company received an offer from Elite Mini-Bars to produce the insets for $2,100 per Unit and supply 1,000 mini-bars for the coming years estimated production. If the company accepts this offer and shuts down production of this part of the business, production workers and supervisors will be reassigned to other areas. Assume that for the short-term decision-making process demonstrated in this problem, the companys total labor costs (direct labor and supervisor salaries) will remain the same if the bar inserts are purchased. The specialized equipment cannot be used and has no market value. However, the space occupied by the mini bar production can be used by a different production group that will lease it for $55,000 per year. Should the company make or buy the mini-bar insert?Patz Company produces two types of machine parts: Part A and Part B, with unit contribution margins of 300 and 600, respectively. Assume initially that Patz can sell all that is produced of either component. Part A requires two hours of assembly, and B requires five hours of assembly. The firm has 300 assembly hours per week. Required: 1. Express the objective of maximizing the total contribution margin subject to the assembly-hour constraint. 2. Identify the optimal amount that should be produced of each machine part and the total contribution margin associated with this mix. 3. What if market conditions are such that Patz can sell at most 75 units of Part A and 60 units of Part B? Express the objective function with its associated constraints for this case and identify the optimal mix and its associated total contribution margin.
- Mossfort, Inc., has a division in Canada that makes long-lasting exterior wood stain. Mossfort has another U.S. division, the Retail Division, that operates a chain of home improvement stores. The Retail Division would like to buy the unique, long-lasting wood stain from the Canadian division, since this type of stain is not currently available. The Exterior Stain Division incurs manufacturing costs of 13.45 for one gallon of stain. If the Retail Division purchases the stain from the Canadian division, the shipping costs will be 1.40 per gallon, but sales commissions of 0.75 per gallon will be avoided with an internal transfer. The Retail Division plans to sell the stain for 32.80 per gallon. Normally, the Retail Division earns a gross margin of 35 percent above cost of goods sold. Required: 1. Which Section 482 method should be used to calculate the allowable transfer price? 2. Calculate the appropriate transfer price per gallon. (Round to the nearest cent.)Jansen Crafters has the capacity to produce 50,000 oak shelves per year and is currently selling 44,000 shelves for $32 each. Cutrate Furniture approached Jansen about buying 1,200 shelves for bookcases it is building and is willing to pay $26 for each shelf. No packaging will be required for the bulk order. Jansen usually packages shelves for Home Depot at a price of $1.50 per shell. The $1.50 per-shelf cost is included in the unit variable cost of $27, with annual fixed costs of $320.000. However, the $130 packaging cost will not apply in this case. The fixed costs will be unaffected by the special order and the company has the capacity to accept the order. Based on this information, what would be the profit if Jansen accepts the special order? A. Profits will decrease by $1,200. B. Profits will increase by $31,200. C. Profits will increase by $600. D. Profits will increase by $7,200.Materials used by the Instrument Division of Ziegler Inc. are currently purchased from outside suppliers at a cost of 1,350 per unit. However, the same materials are available from the Components Division. The Components Division has unused capacity and can produce the materials needed by the Instrument Division at a variable cost of 900 per unit. a. If a transfer price of 1,000 per unit is established and 75,000 units of materials are transferred, with no reduction in the Components Divisions current sales, how much would Ziegler Inc.s total operating income increase? b. How much would the Instrument Divisions operating income increase? c. How much would the Components Divisions operating income increase?
- Bienestar, Inc., has two plants that manufacture a line of wheelchairs. One is located in Kansas City, and the other in Tulsa. Each plant is set up as a profit center. During the past year, both plants sold their tilt wheelchair model for 1,620. Sales volume averages 20,000 units per year in each plant. Recently, the Kansas City plant reduced the price of the tilt model to 1,440. Discussion with the Kansas City manager revealed that the price reduction was possible because the plant had reduced its manufacturing and selling costs by reducing what was called non-value-added costs. The Kansas City manufacturing and selling costs for the tilt model were 1,260 per unit. The Kansas City manager offered to loan the Tulsa plant his cost accounting manager to help it achieve similar results. The Tulsa plant manager readily agreed, knowing that his plant must keep pacenot only with the Kansas City plant but also with competitors. A local competitor had also reduced its price on a similar model, and Tulsas marketing manager had indicated that the price must be matched or sales would drop dramatically. In fact, the marketing manager suggested that if the price were dropped to 1,404 by the end of the year, the plant could expand its share of the market by 20 percent. The plant manager agreed but insisted that the current profit per unit must be maintained. He also wants to know if the plant can at least match the 1,260 per-unit cost of the Kansas City plant and if the plant can achieve the cost reduction using the approach of the Kansas City plant. The plant controller and the Kansas City cost accounting manager have assembled the following data for the most recent year. The actual cost of inputs, their value-added (ideal) quantity levels, and the actual quantity levels are provided (for production of 20,000 units). Assume there is no difference between actual prices of activity units and standard prices. Required: 1. Calculate the target cost for expanding the Tulsa plants market share by 20 percent, assuming that the per-unit profitability is maintained as requested by the plant manager. 2. Calculate the non-value-added cost per unit. Assuming that non-value-added costs can be reduced to zero, can the Tulsa plant match the Kansas City per-unit cost? Can the target cost for expanding market share be achieved? What actions would you take if you were the plant manager? 3. Describe the role that benchmarking played in the effort of the Tulsa plant to protect and improve its competitive position.Brahma Industries sells vinyl replacement windows to home improvement retailers nationwide. The national sales manager believes that if they invest an additional $25,000 in advertising, they would increase sales volume by 10,000 units. Prepare a forecasted contribution margin income statement for Brahma if they incur the additional advertising costs, using this information:Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and trim kits. Fixed cost equals 146,000. Each door handle sells for 12 and has variable cost of 9; each trim kit sells for 8 and has variable cost of 5. Required: 1. What are the contribution margin per unit and the contribution margin ratio for door handles and for trim kits? 2. If Polaris sells 20,000 door handles and 40,000 trim kits, what is the operating income? 3. How many door handles and how many trim kits must be sold for Polaris to break even? 4. CONCEPTUAL CONNECTION Assume that Polaris has the opportunity to rearrange its plant to produce only trim kits. If this is done, fixed costs will decrease by 35,000, and 70,000 trim kits can be produced and sold. Is this a good idea? Explain.