Required: a. Compute the total factor productivity measures for year 1 and year 2 based on the three inputs (material, labor, and overhe (Round your answers to 3 decimal places.) Year 2 Year 1
Q: Suicune Bank granted a P5,000,000 loan to Raikou Company on January 1, 2020. The annual interest on…
A: Effective Interest Rate- The effective rate of interest is the interest rate that can be paid or…
Q: How are losses allocated to S Corporation owners ?
A: S Corporation: As far as federal taxation is concerned, S companies are corporations that have…
Q: Which of the following checks can not be encashed but instead merely deposited? . Stale check…
A: Introduction: Banks: Banks accepts deposits from the customers and gives loans to the needy people.…
Q: Outstanding cheques were # 421 for $157, #485 for $257, # 492 for $167, and #494 for $1,157.Cheque…
A: The bank reconciliation statement is prepared to equate the balances of cash book and pass book with…
Q: 1. The following information was reported by Benedict Co. in their financial statements. Current…
A: The Book of Benedict Co. will be equal to the value of Shareholders’ Equity.
Q: Required information Exercise 7-24 (Algo) Central Station Enterprise Fund (LO 7-5] [The following…
A: Journal entry is the primary step to record the transaction in the books of account. The nominal…
Q: Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the…
A: GIVEN Ramirez Company installs a computerized manufacturing machine in its factory at the…
Q: 2019 2020 Ending Inventory: LIFO 120000 150000 Net Income: LIFO basis 175000 190000 Effective Tax…
A: Inventory:- The items and supplies that a firm retains for the purpose of resale, manufacturing, or…
Q: Depreciation Method
A: In this question, we have to calculate depreciation by three method straight-line, production method…
Q: The City of Waterman established a capital projects fund for the construction of an access ramp from…
A: Dear student as per bartleby guidelines we are supposed to answer only one question. kindly post…
Q: Ltd produces 3000 units of a single product in the period under review . Direct labour per unit $17,…
A: Solution: Variable cost includes direct materials, direct labor and variable overhead. Prime cost is…
Q: e business activities
A: The financial statement is the major in accounting.
Q: Golding's finishing department had the following data for July: Transferred-In Materials…
A: Process costing is a costing method that is employed by the firms involved in the production of…
Q: Assume that a company makes 30,000 units of Part A each year. At this level of production, the…
A: Formula: Financial advantage (disadvantage) of buying the parts from the outside supplier =…
Q: Purpose: To ascertain whether service revenue recognized during December, year 7, is complete and…
A: Service revenue- Service revenue is the sales reported by a industry that relate to services…
Q: QUESTION 1 Ava Consulting issued 1430 shares of previously unissued common stock with a par value of…
A: The debit to cash will be amount received on issue of shares
Q: Whispering Winds Corp. sold $5,900,000, 11%, 15-year bonds on January 1, 2022. The bonds were dated…
A: The bonds are the financial instruments used by the business to raise money from the market or other…
Q: e) None of these answers. 9. Ahmed's employer provides him with S150,000 of group term ife insurance…
A: Group Term Life Insurance is a type of insurance offered to a group of people under the same policy.…
Q: PCC Inc has a debt-to-equity ratio or 3:1. After tax cost of debt is 5% while cost of equity is 10%.…
A: As per the guidelines, only one question is allowed to be solved. Please resubmit the question…
Q: J. The general ledger of M. Cerda Consulting Service Cash Accounts Receivable Furniture and…
A: The worksheet is prepared to record the adjusted trial balance with adjustments, income statement…
Q: The following costs were incurred in May: Direct materials Direct labor Manufacturing overhead…
A: Lets understand the basics. Conversion cost is a cost to convert raw material into finished goods.…
Q: Unit Cost and Cost Assignment, Nonuniform Inputs Loran Inc. had the following equivalent units…
A: 1. Determination of the unit cost for materials, for conversion, and in total for the fabrication…
Q: The following Income Statement information has been obtained from the books of Unlimited Liquors…
A: The net income is calculated as difference between revenue and expenses of the business.
Q: 4. On June 10, Dzeko Co. Sold 10 shoes for $1,700 cash. Date Accounts titles Debit Credit June 1
A: In case of cash sales the cash account will be debited.
Q: Beltway Co. is considering purchasing equipment that has an initial investment of $41,000. The…
A: Introduction : The profitability index (PI) is a metric for determining the desirability of a…
Q: will give thumbs up if correct #1. Given: The manager of a sporting goods store receives an…
A: Amount (in Php) Total Cost 980 Percentage of Markup 35% Markup (Total…
Q: 0/0,000. c. Cash repayment of loan obtained from a bank, P70,000. d. Cash disbursements for drawings…
A: The cash flow statement is prepared to record the cash flow from various activities during the…
Q: A small business has determined that the machinery they currently use will wear out in 17 years. To…
A: The question is based on the concept of Financial Management.
Q: 11. The value of currently unused warehouse space that will be used as part of a new capital…
A: Overhead expense is an indirect expense of the company that is involved in the production process of…
Q: Splish Brothers Ltd. is a publicly listed company following IFRS. Assume that on December 31. 2020.…
A: The process of recording business transactions in the books of accounts for the first time is…
Q: area of the business that operates 24/7 , synthetic rubber, carbon black, oils, an ber for making…
A: The tax on cash outflow would result in savings in tax and hence it would result in a decrease in…
Q: a) Php21.82 b) Php19.84 c) Php14.22 d) Php12.24 10. Heinz Inc expects to generate earnings over the…
A: The question is related to Capitalization of earnings method. Estimated Value = Average Annual…
Q: A family friend has asked your help in analyzing the operations of three anonymous companies…
A: Formulas: Net operating income = Average operating assets x ROI Dollar amount = Average operating…
Q: 1a. A machine was purchased 4 years ago for $50,00O. The depreciation amount each year was $10,000.…
A: Depreciation charging method includes: Straight-line method Declining balance method…
Q: Lincoln Corporation used the following data to evaluate their current operating system. The company…
A: The static budget variance of variable Cost = Actual variable Cost - Budgeted variable Cost
Q: Question 28 X operates a standard marginal costing system. The following budgeted and standard cost…
A: The direct material price variance would be one of two variances being used to evaluate direct…
Q: Which concept is applied to net income and other comprehensive income? A. Borrowed Capital B.…
A:
Q: How do you identify the similarities and difference between the corporate income tax formula and…
A: Corporate income tax: It is a tax levied on a corporation's earnings that is known as corporate…
Q: /The total price for the purchase of a fact nake concrete blocks is (10)million I ars. The price of…
A: Introduction Total revenue is the product of the price and quantity of goods sold in a firm. Total…
Q: A company made an additional (incremental) income of $10.000 during the last week of the year. This…
A: Answer:- Effective tax rate:- The effective tax rate can be defined as the percentage of an…
Q: Which of the following statement(s) related to budgets is/are TRUE? O In preparing a master budget,…
A: A budget is prepared with a view to estimate the revenues and expenses of the firm over a particular…
Q: Prepare an income statement for Golda’s Clothing Store, a retail operation, for the year ended…
A: The income statement shows the net income calculated by deducting the expenses from the revenues of…
Q: 2. You bought a $30,000.00 machine with $6,000.00 down payment and agreed to pay for the rest at 1%…
A: The question is based on the concept of Financial Management. Annuity refers to the amount of equal…
Q: 19.The Post. Ref. column in the general journal is used to show that an account has been posted to…
A: Ledgers - Ledgers are the tabular summary transactions entered into by the organization in the…
Q: On October 1, 2020 Sheffield Corp. issued 6%, 10-year bonds with a face value of $8010000 at 104.…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: impopo Ltd issued 200 000% debentures on 1Jan 2010. The debentures were issued at R7 each and are…
A: Whenever debenture issued at Par and reedemable at Premium then such an excess amount can be treated…
Q: Determine the tax for Year 2 (-
A: Tax is the charge which have to be paid by the corporation or any business on the net income which…
Q: BUS 207 - Principles of Accounting I Homework Assignment 2 Chapter 3 The unadjusted and adjusted…
A: Adjusting entries are the entries made at the end of the accounting period to make adjustments of…
Q: parasota purchased a new piece of equipment to be used in its new facility. The $416,000 piece of…
A: The question is based on the concept of Financial Accounting. Interest bearing securities come under…
Q: First Class, Inc., expects to sell 22,000 pool cues for $12.00 each. Direct materials costs are…
A: Number of units to be produced in 2019 = Expected sales + Ending inventory of finished goods -…
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 1 images
- In 20x2, Choctaw Company implements a new process affecting labor and materials. The following reported data are provided to evaluate the effect on the companys productivity: Required: 1. Calculate the productivity profile for 20x1. 2. Calculate the productivity profile for 20x2, and comment on the effect of the new production and assembly process. 3. What if the labor hours used in 20x2 were 112,500? What does comparison of the 20x1 and 20x2 profiles now communicate?At the end of 20x1, Mejorar Company implemented a low-cost strategy to improve its competitive position. Its objective was to become the low-cost producer in its industry. A Balanced Scorecard was developed to guide the company toward this objective. To lower costs, Mejorar undertook a number of improvement activities such as JIT production, total quality management, and activity-based management. Now, after two years of operation, the president of Mejorar wants some assessment of the achievements. To help provide this assessment, the following information on one product has been gathered: Required: 1. Compute the following measures for 20x1 and 20x3: a. Actual velocity and cycle time b. Percentage of total revenue from new customers (assume one unit per customer) c. Percentage of very satisfied customers (assume each customer purchases one unit) d. Market share e. Percentage change in actual product cost (for 20x3 only) f. Percentage change in days of inventory (for 20x3 only) g. Defective units as a percentage of total units produced h. Total hours of training i. Suggestions per production worker j. Total revenue k. Number of new customers 2. For the measures listed in Requirement 1, list likely strategic objectives, classified according to the four Balance Scorecard perspectives. Assume there is one measure per objective.The controller of Emery, Inc. has computed quality costs as a percentage of sales for the past 5 years (20X1 was the first year the company implemented a quality improvement program). This information is as follows: Required: 1. Prepare a trend graph for total quality costs. Comment on what the graph has to say about the success of the quality improvement program. 2. Prepare a graph that shows the trend for each quality cost category. What does the graph have to say about the success of the quality improvement program? Does this graph supply more insight than the total cost trend graph does? 3. Prepare a graph that compares the trend in relative control costs versus relative failure costs. Comment on the significance of this trend.
- Refer to the data in Exercise 7.18. When the capacity of the HR Department was originally established, the normal usage expected for each department was 20,000 direct labor hours. This usage is also the amount of activity planned for the two departments in Year 1 and Year 2. Required: 1. Allocate the costs of the HR Department using the direct method and assuming that the purpose is product costing. 2. Allocate the costs of the HR Department using the direct method and assuming that the purpose is to evaluate performance.Big Mikes, a large hardware store, has gathered data on its overhead activities and associated costs for the past 10 months. Nizam Sanjay, a member of the controllers department, believes that overhead activities and costs should be classified into groups that have the same driver. He has decided that unloading incoming goods, counting goods, and inspecting goods can be grouped together as a more general receiving activity, since these three activities are all driven by the number of receiving orders. The 10 months of data shown below have been gathered for the receiving activity. Required: 1. Prepare a scattergraph, plotting the receiving costs against the number of purchase orders. Use the vertical axis for costs and the horizontal axis for orders. 2. Select two points that make the best fit, and compute a cost formula for receiving costs. 3. Using the high-low method, prepare a cost formula for the receiving activity. 4. Using the method of least squares, prepare a cost formula for the receiving activity. What is the coefficient of determination?Randy Harris, controller, has been given the charge to implement an advanced cost management system. As part of this process, he needs to identify activity drivers for the activities of the firm. During the past four months, Randy has spent considerable effort identifying activities, their associated costs, and possible drivers for the activities costs. Initially, Randy made his selections based on his own judgment using his experience and input from employees who perform the activities. Later, he used regression analysis to confirm his judgment. Randy prefers to use one driver per activity, provided that an R2 of at least 80 percent can be produced. Otherwise, multiple drivers will be used, based on evidence provided by multiple regression analysis. For example, the activity of inspecting finished goods produced an R2 of less than 80 percent for any single activity driver. Randy believes, however, that a satisfactory cost formula can be developed using two activity drivers: the number of batches and the number of inspection hours. Data collected for a 14-month period are as follows: Required: 1. Calculate the cost formula for inspection costs using the two drivers, inspection hours and number of batches. Are both activity drivers useful? What does the R2 indicate about the formula? 2. Using the formula developed in Requirement 1, calculate the inspection cost when 300 inspection hours are used and 30 batches are produced. Prepare a 90 percent confidence interval for this prediction.
- Mott Company recently implemented a JIT manufacturing system. After one year of operation, Heidi Burrows, president of the company, wanted to compare product cost under the JIT system with product cost under the old system. Motts two products are weed eaters and lawn edgers. The unit prime costs under the old system are as follows: Under the old manufacturing system, the company operated three service centers and two production departments. Overhead was applied using departmental overhead rates. The direct overhead costs associated with each department for the year preceding the installation of JIT are as follows: Under the old system, the overhead costs of the service departments were allocated directly to the producing departments and then to the products passing through them. (Both products passed through each producing department.) The overhead rate for the Machining Department was based on machine hours, and the overhead rate for assembly was based on direct labor hours. During the last year of operations for the old system, the Machining Department used 80,000 machine hours, and the Assembly Department used 20,000 direct labor hours. Each weed eater required 1.0 machine hour in Machining and 0.25 direct labor hour in Assembly. Each lawn edger required 2.0 machine hours in Machining and 0.5 hour in Assembly. Bases for allocation of the service costs are as follows: Upon implementing JIT, a manufacturing cell for each product was created to replace the departmental structure. Each cell occupied 40,000 square feet. Maintenance and materials handling were both decentralized to the cell level. Essentially, cell workers were trained to operate the machines in each cell, assemble the components, maintain the machines, and move the partially completed units from one point to the next within the cell. During the first year of the JIT system, the company produced and sold 20,000 weed eaters and 30,000 lawn edgers. This output was identical to that for the last year of operations under the old system. The following costs have been assigned to the manufacturing cells: Required: 1. Compute the unit cost for each product under the old manufacturing system. 2. Compute the unit cost for each product under the JIT system. 3. Which of the unit costs is more accurate? Explain. Include in your explanation a discussion of how the computational approaches differ. 4. Calculate the decrease in overhead costs under JIT, and provide some possible reasons that explain the decrease.Bradford Company, a manufacturer of small tools, implemented lean manufacturing at the end of 20x1. The companys goal for the year was to increase the ROS to 40 percent of sales. A value-stream team was established and began to work on lean improvements. During the year, the team was able to achieve significant results on several fronts. The Box Scorecard below reflects the performance measures at the beginning of the year, midyear, and end of year. Although the team members were pleased with their progress, they were disappointed in the financial results. They were still far from the targeted ROS of 40 percent. They were also puzzled as to why the improvements made did not translate into significantly improved financial performance. Required: 1. From the scorecard, what was the focus of the value-stream team for the first six months? The second six months? What are the implications of these changes? 2. Using information from the scorecard, offer an explanation for why the financial results were not as good as expected. 3. Suppose that on December 31, 20x2, a potential customer offered to purchase an order of goods that would increase weekly revenues in January by 100,000 and material cost by 30,000. Using the old standard cost system, the projected conversion cost of the order would be 60,000. Would you recommend that the order be accepted or rejected? Explain.Dantrell Palmer has just been appointed manager of Kirchner Glass Products Division. He has two years to make the division profitable. If the division is still showing a loss after two years, it will be eliminated, and Dantrell will be reassigned as an assistant divisional manager in another division. The divisional income statement for the most recent year is as follows: Upon arriving at the division, Dantrell requested the following data on the divisions three products: He also gathered data on a proposed new product (Product D). If this product is added, it would displace one of the current products; the quantity that could be produced and sold would equal the quantity sold of the product it displaces, although demand limits the maximum quantity that could be sold to 20,000 units. Because of specialized production equipment, it is not possible for the new product to displace part of the production of a second product. The information on Product D is as follows: Required: 1. Prepare segmented income statements for Products A, B, and C. 2. Determine the products that Dantrell should produce for the coming year. Prepare segmented income statements that prove your combination is the best for the division. By how much will profits improve given the combination that you selected? (Hint: Your combination may include one, two, or three products.)
- In 20x5, Major Company initiated a full-scale, quality improvement program. At the end of the year, Jack Aldredge, the president, noted with some satisfaction that the defects per unit of product had dropped significantly compared to the prior year. He was also pleased that relationships with suppliers had improved and defective materials had declined. The new quality training program was also well accepted by employees. Of most interest to the president, however, was the impact of the quality improvements on profitability. To help assess the dollar impact of the quality improvements, the actual sales and the actual quality costs for 20x4 and 20x5 are as follows by quality category: All prevention costs are fixed (by discretion). Assume all other quality costs are unit-level variable. Required: 1. Compute the relative distribution of quality costs for each year and prepare a pie chart. Do you believe that the company is moving in the right direction in terms of the balance among the quality cost categories? Explain. 2. Prepare a one-year trend performance report for 20x5 (compare the actual costs of 20x5 with those of 20x4, adjusted for differences in sales volume). How much have profits increased because of the quality improvements made by Major Company? 3. Estimate the additional improvement in profits if Major Company ultimately reduces its quality costs to 2.5 percent of sales revenues (assume sales of 10 million).Assume that at the beginning of 20x2, Cicleta trained the 2 assembly workers in a new approach that had the objective of increasing the efficiency of the assembly process. Cicleta also began moving toward a JIT purchasing and manufacturing system. When JIT is fully implemented, the demand for expediting is expected to be virtually eliminated. It is expected to take two to three years for full implementation. Assume that receiving cost is a step-fixed cost with steps of 1,500 orders. The other three activities employ resources that are acquired as used and needed. At the end of 20x2, the following results were reported for the four activities: Required: 1. Prepare a trend report that shows the non-value-added costs for each activity for 20x1 and 20x2 and the change in costs for the two periods. Discuss the reports implications. 2. Explain the role of activity reduction for receiving and for expediting. What is the expected value of SQ for each activity after JIT is fully implemented? 3. What if at the end of 20x2, the selling price of a competing product is reduced by 27 per unit? Assume that the firm produces and sells 20,000 units of its product and that its product is associated only with the four activities being considered. By virtue of the waste-reduction savings, can the competitors price reduction be matched without reducing the unit profit margin of the product that prevailed at the beginning of the year? If not, how much more waste reduction is needed to achieve this outcome? In this case, what price decision would you recommend?Two departments within Cougar Gear Inc. are Production and Sales. Each department has a unique scorecard, as follows: The Production Department scorecard focuses on the learning and growth and internal processes perspectives. The Sales Department scorecard focuses on the learning and growth and customer perspectives. Both scorecards have the learning and growth performance metrics of median training hours per employee and average employee tenure. The Production scorecard has the unique metrics of production time per unit and number of production shutdowns. The Sales scorecard has the unique metrics of percentage of customers who shop again and online customer satisfaction rating. The performance targets for each metric are shown in the tan boxes just under the performance metrics. The actual achieved metrics are shown in the red boxes just below the tan boxes. When evaluating both departments, Cougar Gears management looks at the median training hours per employee and average employee tenure metrics and subsequently decides to give the Sales Department a large bonus while giving the Production Department a minimal bonus. a. Determine and define the type of cognitive bias Cougar Gears management has exhibited in this instance. b. Determine which department would have received the larger bonus had the companys management not been biased in the evaluation. c. Discuss one advantage and one disadvantage of using unique balanced scorecards for different departments or divisions of a company.