Rough Stuff makes 2 products: khaki shorts and khaki pants for men. Each product passes through the cutting machine area, which is the chief constraint during production. Khaki shorts take 15 minutes ón the cutting machine and have a contribution margin per pair of shorts of $17. Khaki pants take 24 minutes on the cutting machine and have a contribution margin per pair of pants of $34. If it is assumed that Rough Stuff has 4,800 hours available on the cutting machine to service a minimum demand for each product of 3,000 units, how much will profits increase if 102 more hours of machine time can be obtained?
Q: Required information [The following information applies to the questions displayed below.] Ciolino…
A: The cost of goods manufactured includes the costs incurred to complete the goods during the period.
Q: What should be considered when deciding whether a joint product should be sold at the split-off…
A: To decide the choice of selling or processing further, the company must determine the revenues that…
Q: On 31 May 20X2 the bank statement of Harrison Ltd showed a balance of £26,500. As part of the bank…
A: Bank reconciliation is a statement to identify and document the differences between balance as per…
Q: Explain the role and limitations of budgeting in business organizations. Support your answer with…
A: The answer is stated below:
Q: 2. How many regular hours will someone need to work to earn $250 at $12.50/h?
A: Hi student Since there are multiple questions, we will answer only first question.
Q: . The following historical pattern on its credit sales of Rainy Co. was presented: 70% collection…
A: CASH BUDGET: Cash budget gives an estimate of the anticipated receipts and payments of cash during…
Q: 1.) Albert, Benny and Camposo planned a business venture where Albert will contribute Benny…
A: Partnership business is the one where two or more persons join hands to share profit and losses by…
Q: a) At the beginning of the year, Juju Sdn. Bhd. estimated the following: Total Firing Department RM…
A: The predetermined overhead rate is calculated as estimated overhead cost divided by estimated base…
Q: Fill in the blanks: Blackknight Corp. purchased the following held for trading investments during…
A: As per given information in the question: Cost of ABC Shares= P900000 Cost of DEF Shares= P1000000…
Q: Garrison Boutique, a small novelty store, just spent $4,000 on a new software program that will help…
A:
Q: On March 2015, Agency A is taking legal action against its competitor for patent infringement…
A: Contingent assets and liabilities are the ones that have the uncertainty to be received or raised…
Q: Create a Ledger.
A: Ledger is a principal book that contains all the accounts such as Assets Accounts, Liabilities…
Q: 3. Budji Corp. is preparing its budget for 19B. For 19A, the following were reported: Sales (100,000…
A: The net income is calculated as difference between sales and total costs incurred.
Q: P8.6 (LO 3) (Compute FIFO, LIFO, Average-Cost—Periodic and Perpetual) Ehlo Company is a multi…
A: The inventory can be valued using various methods as LIFO, FIFO and weighted average method.
Q: BCC has received a request from a school board for 200 computers. Using the full-cost criteria and…
A: Full cost method is the method in which the company takes into consideration full costs which are…
Q: ank builds a storage shed in his back yard that has a cement base. The walls of the shed are…
A: Introduction: An asset is a valuable object or person. Assets are classified in a variety of ways…
Q: Wright Corp. Is considering the purchase of a new plece of equipment, which would have an Initial…
A: The question is based on the concept of Financial Management. Payback period is the period in which…
Q: March 2015, Agency A is taking legal action against its competitor for patent infringement relating…
A: it is important to differentiate between the provision and contingent liability in order to present…
Q: Guess Clothing Store sells jeans. During January 2022, its inventory records for one brand of…
A: A periodic inventory system, also known as the periodic inventory technique, seems to be an…
Q: Hualien Company adopts the periodical inventory system, and its adjusted trial balance on December…
A: Closing entries are passed at the end of accounting period to transfer the balance of temporary…
Q: Required: 1. If we assume that the total time available on the plastic injection molding machine is…
A: Contribution per unit, is the selling price per unit minus the variable cost per unit."Contribution"…
Q: Each share of preference is convertible into 1 ordinary share. In June, ABC converted 4,000 of…
A: The stockholders’ equity for ABC Company on December 31 was: Preference share, P20 par, 60,000…
Q: Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago…
A: Inventory Turnover Ratio: The pace at which inventory stock is sold, or utilized, and replaced is…
Q: Value in use is a) © Discount rate b) © Present value of future cash if flows c) © Uncertainty of…
A: The monetary value of an asset or liability is referred to as its value. The most accurate…
Q: Mandatory redeemable preferred stock must be classed as Stockholders' Equity on the balance sheet,…
A: The term "stock" refers to a statement of financial position or ownership. The two categories of…
Q: Orange Corporation has budgeted sales of 23,000 units, targeted ending finished goods inventory of…
A: Number of units to be sold next year = Beginning finished goods inventory + units produced next year…
Q: In the income statement below, ABC Trade Inc. wants to find the resulting net income for the year…
A: The net income is calculated as difference between total income and total expenses.
Q: Calculate the net payment due if the shipment is received on January 10th and the payment is made on…
A: The company making sales on account sometimes provide the discount to fasten the collection process.…
Q: Toothpaste is a necessary, frequently purchased consunmer product. In an average week a retailer…
A: Gross Margin is a financial measure that measures the financial health and working of an…
Q: isces, Leo and Germini share profits in the ration of 5:3:2, ust prior to partnership liquidation…
A: NOTE : As per BARTLEBY guidelines, when multiple questions are given then first question is to be…
Q: Palmer Corp. is considering the purchase of a new piece of equipment. The cost savings from the…
A: Solution: Annual net income after taxes = $164,900 Initial investment = $485,000 Expected salvage…
Q: Link Components plc manufactures 2 products for the manufacture of electric motor vehicles, X and Y.…
A: When a company produces more than one product, it faces many financial related decisions related to…
Q: GMPK LLP, a firm that provides financial services, has suffered financially due to a marked loss of…
A: A partnership is an agreement where two or more individuals mutually agree to operate and manage a…
Q: Part U67 is used in one of Broce Corporation's products. The company's Accounting Department reports…
A: In the given question the Relevant cost to Make should be compared with Relevant cost to Buy. If…
Q: Gardenia Company reported the following assets in the statement of financial position at year-end:…
A: The accounts receivable is the amount that is due but not received. The accounts receivable is the…
Q: Apple Company manufactures wooden chairs and uses a standard cost system which sets predetermined…
A: Cost Variances It is the difference between the actual cost and the budgeted cost and is also called…
Q: ABC Company reported pretax financial income of 7,000,000 for the year ended December 31,2021. The…
A: In case where the Income as per accounting base is different from the taxable income as per income…
Q: a 20% chance of being ordered to pay C damages of P10,000. . State whether a contingent liability…
A: A liability whose occurrence depends upon the happening or non happening of future uncertain…
Q: On 30 June 2023, the end of the current reporting period, Master Ltd decided, using the information…
A: Depreciation charged in two previous years = 100000/10 = 10000 each year WDV = 80000 Depreciation =…
Q: Sales (20,000 units @ 60 per unit) $1,200,000 Less: Variable cost 20,000@ $45 900,000 Contribution…
A: Formulas: No. of units to be sold in next year = Current units sales + (1 + 0.20) Variable costs per…
Q: Question One - Joumalize the following monthly adjusting entries: Purchased equipment for $20,000,…
A: Annual Depreciation expense = Cost - Salvage Value / Useful life in years =($20,000-$2,000)/5 years…
Q: Sales (20,000 units @ 60 per unit) $1,200,000 Less: Variable cost 20,000@ $45 900,000 Contribution…
A: Formulas: Increase in net operating income % = (Expected net operating income - Current net…
Q: Zain Co. is a registered trader with the VAT Directorate of the Ministry of Finance of Bahrain. Zain…
A: Input VAT: It is the amount paid towards VAT when goods are purchased. The seller of goods need to…
Q: Merryweather Corporation reported net income of $150,000, income before taxes of $240,000 and…
A: Times interest earned ratio is one of the ratio which shows income before interest and taxes with…
Q: Deirdre Surf Shop, Inc. placed in service computer equipment with a basis of $15,0 th a basis of…
A: Placed in service is point of time when an asset that can be depreciated for the use of accounting.…
Q: Solve the following questions. Please choose the best answer with solutions. Choose answers in the…
A: An Income Statement refers to a Statement of profit or loss. This statement gives information…
Q: 5) Smith Company needs additional financing and is going to issue long term bonds to raise the…
A: 5) Date Particulars Debit ($) Credit ($) January 1,2022 cash 100000 To bond 100000…
Q: Choose the correct answer with solution. Pls choose only the answer in the choices.
A: As given the following financial data is being prepared by Gising for presentation to potential…
Q: QUESTION 1 Below are the statements of Financial Position for Grace Ltd as at 31 December, 2009 and…
A: Cash Flow Statement- A cash flow statement is an important component of the company's financial…
Q: is earned in the previous year 2020-21. (1) Salary received from Govt. of India (He lived in…
A: In India, income taxation is determined by a person's residency status. An individual's residence…
Step by step
Solved in 4 steps with 3 images
- Identification. Pocket Umbrella, Inc., is considering producing a new type of umbrella. This newpocket-sized umbrella would fit into a coat pocket or purse. Classify the following costs of thisnew product as direct materials, direct labor, manufacturing overhead, selling expense, oradministrative expense.6. The salary of the supervisor of the people who assembled the product7. Wages of the product tester who stands in a shower to make sure the umbrellas do not leak8. Cost of market research survey9. Salary of the company’s sales managers10. Depreciation of administrative office buildingB. Essay. Answer below questions as required.1. Identify the three elements of cost incurred in manufacturing a product and indicate thedistinguishing characteristics of each. 2. What is the general content of a statement of cost of goods manufactured? 3. What is the relationship of the cost of goods manufactured to the income statement? 4. How did you cope up with your studies in this “new normal”…2.The company "Chanos Ltd" produces puzzles for adults within the framework of a standardized mass production. The production process uses 2 basic raw materials: cardboard and high quality ink. For the manufacture of a puzzle, half a square meter of cardboard and 0.1 kg of ink are required. The cardboard is inserted at the beginning of the production process and the ink is added at the end by printing the design on the now perforated puzzle. The company uses the cost flow assumption F.I.F.O. to value its inventories. Here are some data for the month of August 20X6: The initial stock of semi-finished on 1/8/20X6 was 2,000 puzzles processed at 20% in terms of conversion costs. The cost of the initial stock amounted to €28,000 in terms of cardboard costs and €35,000 in terms of conversion costs. The conversion cost for the month amounted to € 20,300. The final stock of semi-finished on 31/8/20X6 was 3,000 puzzles processed at 40% in terms of conversion costs. Data are also given…Directions: Answer the following questions by the due date. Use numerical calculations (if needed) to support your argument. Submit your answers through uploading a Microsoft Word file, Excel file or PDF. Tread-Force Fitness, Inc. assembles and sells elliptical machines. All activity costs are related to labor. Management must remove $2.00 of activity cost from the product in order for it to remain competitive. Activity-based product information for each elliptical machine is as follows: (Hrs per unit) Activity Activity Based Usage x Activity rate / hr = Activity Cost Moving 0.20 $15 $3.00 Motor Assembly 1.50 $20 $30.00 Final Assembly…
- a manufacturer makes two products, windows and doors. Each must be processed through two work areas. Work are #1 has 50 hours of available production time. Work area #2 has 60 hours of available production time. Manufacturing of a window requires 3 hours in work area #1 and 2 hours in work area #2. Manufacturing of a door requires 1 hours in work area #1 and 4 hours in work area #2. Profit is $6 per door and $9 per window. make a table to show the points to make your constraint lines and test points for optimal profitLife Force Fitness, Inc., assembles and sells treadmills. Activity-based product information for each treadmill is as follows: Activity Activity-BaseUsage(hrs. per unit) X Activity Rateper Hour = ActivityCost Motor assembly 1.50 $20 $30.00 Final assembly 1.00 18 18.00 Testing 0.25 22 5.50 Rework 0.40 22 8.80 Moving 0.20 15 3.00 Activity cost per unit $65.30 All of the activity costs are related to labor. Management must remove $2.00 of activity cost from the product in order to remain competitive. Rework involves disassembling and repairing a unit that fails testing. Not all units require rework, but the average is 0.40 hours per unit. Presently, the testing is done on the completed assembly; but much of the rework has been related to motors, which can be tested independently prior to adding the motor to…This section has a nine-part comprehensive problem with multiple questions to address. Download the Chapter 9 Comprehensive Problem Template below to complete all parts. You will need your Bergevin and MacQueen book for reference. Redlands Inc. reported standard and actual costs for the product that it manufactures: Item Standard Actual Direct material price $3 per lb. $2 per lb. Direct materials quantity 2 lbs. 4 lbs. Direct labor price $5 $7 Direct labor quantity 3 hours 2 hours Factory overhead cost $2 per machine hour ---- Machine hours per unit 2 machine hours 3 machine hours Number of finished products made 10 12 Number of finished products sold 10 11 Sales per unit $40 $40 * Redlands used machine hours to apply factory overhead costs. The company incurred $90 actual total factory overhead costs to make the 12 products. 1. Standard product cost Item Price Quantity Total Direct materials Direct labor Factory overhead Standard…
- Life Force Fitness, Inc., assembles and sells treadmills. Activity-based product information for each treadmill is as follows: Activity Activity-Base Usage(hrs. per unit) X Activity Rateper Hour = Activity Cost Motor assembly 1.50 $20 $30.00 Final assembly 1.00 18 18.00 Testing 0.25 22 5.50 Rework 0.40 22 8.80 Moving 0.20 15 3.00 Activity cost per unit $65.30 All of the activity costs are related to labor. Management must remove $2.00 of activity cost from the product in order to remain competitive. Rework involves disassembling and repairing a unit that fails testing. Not all units require rework, but the average is 0.40 hours per unit. Presently, the testing is done on the completed assembly; but much of the rework has been related to motors, which can be tested independently prior to adding the motor…Open MFG2 and click the Chart sheet tab. The management of Twisp is convinced that the quality of its products is highly dependent on their relative labor costs. Experience has shown that direct labor should account for at least 45% of the total product cost. According to the pie chart that appears on the screen, Twisp did not achieve this goal in 2011. How much should Twisp have spent on direct labor to reach its 45% goal? To find out, try different values for direct labor (cell C8), clicking the Chart sheet tab after each attempt. When you find a direct labor level that increases the direct labor percentage to 45%, enter the answer in the space provided: In 2011, direct labor needed to be ________________. Open MFG3 and click the Chart sheet tab. Did Twisp achieve its 45% goal in 2012? If not, answer the following: In 2012, direct labor needed to be ________________. When the assignment is complete, close the files without saving them again. Worksheet. The MFG2 worksheet presents the companys manufacturing activities for 2011. The company also had the following selling and general activities in 2011: sales of 13,503,000, selling expenses of 2,400,000, and general expenses of 1,200,000. Modify the worksheet to include this information in the Data Section and change the Answer Section so that it is in the form of an income statement. Preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as MFGT. Hint: Expand the Data Section to include these additional input items alphabetically. Insert a row for sales under the heading in the Answer Section. Add the rest of the income statement information to the bottom of the schedule. You will need to enter formulas for gross profit, all the expenses, and net income. You will also need to change the statement name. Chart. Using the MFG2 file, prepare a single 3-D bar chart to show the dollar amount of materials, labor, and overhead incurred by Twisp in 2011 and 2012. Complete the Chart Data Table and use it as a basis for preparing the chart. Enter all appropriate titles, legends, and formats. Enter your name somewhere on the chart. Save the file again as MFG2. Print the chart.Rough Stuff makes 2 products: khaki shorts and khaki pants for men. Each product passes through the cutting machine area, which is the chief constraint during production. Khaki shorts take 15 minutes on the cutting machine and have a contribution margin per pair of shorts of $16. Khaki pants take 24 minutes on the cutting machine and have a contribution margin per pair of pants of $32. If it is assumed that Rough Stuff has 4,800 hours available on the cutting machine to service a minimum demand for each product of 3,000 units, how many of each product should be made?
- Outdoor Luggage Inc. makes high-end, hard-sided luggage for sports equipment. Data concerning three of the company’s most popular models appear below. SkiGuard GolfGuard FishingGuard Selling price per unit $ 280 $ 330 $ 175 Variable cost per unit $ 140 $ 210 $ 115 Plastic injection moulding machineprocessing time required per unit 4 min 12 min 9 min Kgs of plastic pellets per unit 12 kg 15 kg 13 kg 1-a. The total time available on the plastic injection moulding machine is the constraint in the production process. What is the contribution margin per unit of the constrained resources for Ski Guard, Golf Guard and Fishing Guard? 1-b. Which product would be the most profitable use of this constraint? Ski Guard Fishing Guard Golf Guard 1-c. Which product would be the least profitable use of this constraint? Ski Guard Fishing Guard Golf Guard 2-a. A severe shortage of plastic pellets has required the company to cut…A tool set contains 6 wrenches, 4 screwdrivers, and 2 pliers. The manufacturer has 1000 pliers, 2000 screwdrivers, and 3000 wrenches in stock. Can an order for 600 tool sets be filled? If not, why not? Select a missing word in the first answer field in accordance with the question statement. YesNo, there Select a missing word in the second answer field in accordance with the question statement. areare not enough tools. 600 tool sets require Enter a missing word into the third answer field in accordance with the question statement. screwdrivers, Enter a missing word into the fourth answer field in accordance with the question statement. wrenches, and Enter a missing word into the fifth answer field in accordance with the question statement. pliers.Active Apparel Company manufactures various styles of men’s casual wear. Shirts are cut and assembled by a workforce that is paid by piece rate. This means that they are paid according to the amount of work completed during a period of time. To illustrate, if the piece rate is $0.15 per sleeve assembled, and the worker assembles 700 sleeves during the day, then the worker would be paid $105 (700 × $0.15) for the day’s work. The company is considering adopting a lean manufacturing philosophy by organizing work cells around various types of products and employing pull manufacturing. However, no change is expected in the compensation policy. On this point, the manufacturing manager stated the following: “Piecework compensation provides an incentive to work fast. Without it, the workers will just goof off and expect a full day’s pay. We can’t pay straight hourly wages—at least not in this industry.” a. How would you respond to the manufacturing manager’s comments?