Sturbridge Company manufactures fine furniture and grandfather clocks. Sturbridge has an excellent reputation, and each grandfather clock sells for several thousand dollars. Which of the following is an indirect cost, assuming the cost object is the Clock Department? Multiple Choice Salary of the clock production supervisor. Depreciation on the factory building. Depreciation on clock-making equipment. All of the answers are correct.
Q: A partially owned subsidiary declared dividend and half remains unpaid by the end of the year, which...
A: The question is related to Consolidation. In case dividend is declared by partially owned subsidiary...
Q: 6. Indicate whichjoumal would be used to record the following transactions. Select from the followin...
A: Sales Journal – For all credit sales of inventory Purchase Journal – For all credit purchase of inve...
Q: True or False 1. A manager could be held criminally liable for the misdeeds of the company 2. It is ...
A:
Q: In 2020, Ted Baker had total assets of $510.31 million, of which $219.92 million were total noncurre...
A: The current assets ratio can be calculated by dividing current assets by total assets.
Q: What the answer for 40 The first answer I had was Ending Inventory C Retained Earnings B Cost of Goo...
A: The error in estimating ending inventory affects various elements such as cost of goods sold, net in...
Q: The master budget at Western Company last period called for sales of 226,000 units at $10.00 each. T...
A: The question is based on the concept of Cost Accounting.
Q: We-Win Law Services received a payment of $56,000 as a retainer for a legal client for services to b...
A: Solution: Unearned revenue at year end will revenues unearned at the end of the year after adjusting...
Q: (1) Compute the direct labor rate variance, the direct labor efficiency variance, and the total dire...
A: 1)
Q: Pampanga's best provided the following information: ...
A: Solution: Inventory to be reported on statement of financial position = Raw materials inventory + Fi...
Q: On January 2, 2020, Popsters Corporation purchased 80% of SG Corporation's ordinary shares for P648,...
A: A) Net income attributable to non-controlling interest Subsidiary Income P105,000 The share of ...
Q: The Music carries a large inventory of quitars and other musical instruments Tho store uses the FIFO...
A: Perpetual inventory records system of the guitars (using FIFO method) Date Particulars quantity u...
Q: A set of tools costs P1,260 and can be ground twenty ti Finding costs P54.00 and the time needed to ...
A: For Machine speed A Output per hour = 200 pieces Regrinding interval = 8 hours Pieces produced = 200...
Q: Indicate whether each of the following variances is favorable (F) or unfavorable (U). The "None" if ...
A: A variance is said to be Favorable when the budgeted revenues are less than actual revenues and budg...
Q: Raw materials on hand- P85,000 · Raw materials used (including indirect materials of P35,000)...
A: The balance of inventory will include the balance of Raw material plus the balance of Finished goods...
Q: vealth of its sh ent in the long pays dividend
A: Dividend-paying funds, like individual stocks, will drop their share values by the amount of the div...
Q: the retained company onsidering tne follo nancial informatior
A: Retained earnings are the earning left after adding net pr...
Q: The work-in-process inventories of ABC Manufacturing, Inc. were completely destroyed by fire on June...
A: Work-in-progress (WIP) is a product and supply management phrase that refers to partially finished i...
Q: Live Corporation has equipment with a carrying value of 450,000 on December 31, 2021. The following ...
A: The question is related to Impairment of Assets. The Impairment Loss is Excess of Carrying Amount ov...
Q: On July 1, 2020, Zelensky Company, a calendar-year company, purchased a machine for a cash price of ...
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets ...
Q: he effect of stockholders divided is to
A: A shareholder, sometimes known as a stockholder, is a person, business, or organization that owns at...
Q: Fragile Company used the direct method tom prepare the statement of cash flows. The entity had the f...
A: Investing activities includes activities related to acquisition and disposal of long term assets and...
Q: 20. A building was acquired on January 1, 2019 at an original cost of P16,000,000, with zero residua...
A: Under the double-declining balance method rate of depreciation is twice that of the straight-line ra...
Q: Carla Vista Choice sells natural supplements to customers with an unconditional sales return if they...
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal....
Q: alette Inc. is being sued by a customer for $500,000 related to damages from the sale of defective p...
A: Solution Concept A contingent liability shall be recorded when it is probable that loss will occur I...
Q: In all cases, an entity shall measure agricultural produce at the point of harvest at fair value les...
A: Agriculture Product: The term "agricultural products" refers to crops, livestock, and livestock prod...
Q: equal ounces of Au extracted daily. If the Au today is $2,200/oz, which process is more feasible con...
A: The world's oceans contain on average of 0.9 oz of Au/ton of ocean water. There are two process in m...
Q: On January 1, 2017, Jungkook Company purchased an equipment for P1,970,000. On this date, the equipm...
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets ...
Q: What the answer for 22 The first time I had put 950,000 The second time I had put 5,930,000 both was...
A: Hi student Since there are multiple subparts, we will answer only first three subparts. If you want ...
Q: Lucena Products provided the following information: ...
A: Solution: Amount of inventory should be reported in statement of financial position = Raw materials ...
Q: Javon Company set standards of 2 hours of direct labor per unit at a rate of $15.50 per hour. During...
A: 1. October: Actual Cost Standard Cost AH x AR AH x SR SH x SR 11500 x 15.7 11...
Q: Due to erratic sales of Its sole product-a high-capacity battery for laptop computers-PEM, Incorpora...
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question...
Q: The Solomon Company uses a job costing system at its Dover, Delaware plant. The plant has a machinin...
A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for y...
Q: Heather Hudson makes stuffed teddy bears. Recent information for her business follows: Sell...
A: The degree of operating leverage is a ratio that measures how much operating income of a company wil...
Q: Harry, Hermione, and Ron formed an S corporation called Bumblebore. Harry and Hermione both contribu...
A: The amount of your capital investment in property for tax purposes. The basisis used to figure dep...
Q: December 3T Cash 7,530 Accounts Receivable 2,100 Prepaid Expenses 700 Equipment 13,700 Accumulated D...
A: Trial Balance: Trial balance is a statement in which the closing balance of all ledger accounts are ...
Q: QUESTION 4 Indicate whether each of the following costs incurred by a manufacturer would be consider...
A: Direct material cost is cost incurred in relation to material purchased for the process of productio...
Q: Flynn acquires 100 percent of the outstanding võting shares, Flynn pays $400 cash (in thousands) and...
A: Cash 80 Receivables 160 Inventory 300 Land 130 Building 280 Equipment 75 Trademark 40...
Q: Use the following schedule to answer the questions below. Units Cost per unit Beginning inventory 10...
A: Under LIFO method the units sold will be first from the latest purchases and ending inventory should...
Q: Statement of Cash Flows (Direct Method) The Wolff Company's income statement and comparative balance...
A:
Q: Sandy Bank, Inc., makes one model of wooden canoe. And, the information for it follows: ...
A: The break-even point is the moment at which total cost & total income are equal, indicating that...
Q: Conceptual Framework and Reporting Standard: Small and Medium Sized Enterprise 1. The PFRS for SMEs...
A: The correct answers the above mentioned question is given in the following steps for your reference....
Q: A company sells one product and its contribution margin ratio is 10%. The company provides the follo...
A: Net operating income is the income earned by the company from its operations. It is reported in the ...
Q: Rem was retired by his employer corporation in 2020 and was paid P1,000,000 as a retirement gratuity...
A: An individual's gross income (sometimes known as gross pay on a paycheck) is their total earnings be...
Q: plz solve it within 30-40 mins I'll give you multiple upvote
A: Net Interest Margin: Net interest margin is a relative term that computes the gross interest income ...
Q: Current Attempt in Progress Presented here are the components in Carla Vista Co's income statement. ...
A: Answer - Gross Profit = Sales Revenue - Cost of Goods Sold Net Income = Gross Profit - Operating...
Q: Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present, t...
A: Contribution margin per unit = selling price per unit - variable cost per unit Contribution margin r...
Q: QS 7-7 Percent of accounts receivable method LO P3 Warner Company's year-end unadjusted trial balanc...
A: An allowance for doubtful accounts is a balance-sheet counter item that nets against total receivabl...
Q: Identify, from the above scenario, the risks and control objectives relating to cash. ...
A: In the present case it's evident that there are a lot of cash sales is happening and cash is been de...
Q: If there is a change from double declining balance to straight line method xThe accumulated deprec...
A: Solution: Accounting for Change in depreciation method is based on change in accounting principal f...
Q: On January 1, 2021, Entity F acquired 25% of the shares of Pot, Inc. for P425,000. At this date all ...
A: Carrying amount of the investment in Pot, Inc. as of December 31,2021 will be calculated as follows:...
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Hicks Contracting collects and analyzes cost data in order to track the cost of installing decks on new home construction jobs. The following are some of the costs that they incur. Classify these costs as fixed or variable costs and as product or period costs. Lumber used to construct decks ($12.00 per square foot) Carpenter labor used to construct decks ($10 per hour) Construction supervisor salary ($45,000 per year) Depreciation on tools and equipment ($6,000 per year) Selling and administrative expenses ($35,000 per year) Rent on corporate office space ($34,000 per year) Nails, glue, and other materials required to construct deck (varies per job)Nizam Company produces speaker cabinets. Recently, Nizam switched from a traditional departmental assembly line system to a manufacturing cell in order to produce the cabinets. Suppose that the cabinet manufacturing cell is the cost object. Assume that all or a portion of the following costs must be assigned to the cell: a. Depreciation on electric saws, sanders, and drills used to produce the cabinets b. Power to heat and cool the plant in which the cell is located c. Salary of cell supervisor d. Wood used to produce the cabinet housings e. Maintenance for the cells equipment (provided by the maintenance department) f. Labor used to cut the wood and to assemble the cabinets g. Replacement sanding belts h. Cost of janitorial services for the plant i. Ordering costs for materials used in production j. The salary of the industrial engineer (she spends about 20 percent of her time on work for the cell) k. Cost of maintaining plant and grounds l. Cost of plants personnel office m. Depreciation on the plant n. Plant receptionists salary and benefits Required: Identify which cost assignment method would likely be used to assign the costs of each of the preceding activities to the cabinet manufacturing cell: direct tracing, driver tracing, or allocation. When driver tracing is selected, identify a potential activity driver that could be used for the tracing.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?
- The Chocolate Baker specializes in chocolate baked goods. The firm has long assessed the profitability of a product line by comparing revenues to the cost of goods sold. However, Barry White, the firms new accountant, wants to use an activity-based costing system that takes into consideration the cost of the delivery person. Following are activity and cost information relating to two of Chocolate Bakers major products: Using activity-based costing, which of the following statements is correct? a. The muffins are 2,000 more profitable. b. The cheesecakes are 75 more profitable. c. The muffins are 1,925 more profitable. d. The muffins have a higher profitability as a percentage of sales and, therefore, are more advantageous.Quincy Farms is a producer of items made from farm products that are distributed to supermarkets. For many years, Quincys products have had strong regional sales on the basis of brand recognition. However, other companies have been marketing similar products in the area, and price competition has become increasingly important. Doug Gilbert, the companys controller, is planning to implement a standard costing system for Quincy and has gathered considerable information from his coworkers on production and direct materials requirements for Quincys products. Doug believes that the use of standard costing will allow Quincy to improve cost control and make better operating decisions. Quincys most popular product is strawberry jam. The jam is produced in 10-gallon batches, and each batch requires six quarts of good strawberries. The fresh strawberries are sorted by hand before entering the production process. Because of imperfections in the strawberries and spoilage, one quart of strawberries is discarded for every four quarts of acceptable berries. Three minutes is the standard direct labor time required for sorting strawberries in order to obtain one quart of strawberries. The acceptable strawberries are then processed with the other ingredients: processing requires 12 minutes of direct labor time per batch. After processing, the jam is packaged in quart containers. Doug has gathered the following information from Joe Adams, Quincys cost accountant, relative to processing the strawberry jam. a. Quincy purchases strawberries at a cost of 0.80 per quart. All other ingredients cost a total of 0.45 per gallon. b. Direct labor is paid at the rate of 9.00 per hour. c. The total cost of direct material and direct labor required to package the jam is 0.38 per quart. Joe has a friend who owns a strawberry farm that has been losing money in recent years. Because of good crops, there has been an oversupply of strawberries, and prices have dropped to 0.50 per quart. Joe has arranged for Quincy to purchase strawberries from his friends farm in hopes that the 0.80 per quart will put his friends farm in the black. Required: 1. Discuss which coworkers Doug probably consulted to set standards. What factors should Doug consider in establishing the standards for direct materials and direct labor? 2. Develop the standard cost sheet for the prime costs of a 10-gallon batch of strawberry jam. 3. Citing the specific standards of the IMA Statement of Ethical Professional Practice described in Chapter 1, explain why Joes behavior regarding the cost information provided to Doug is unethical. (CMA adapted)One of the tennis rackets that Ace Sporting Goods manufactures is a titanium model (Slam) that sells for 149. The cost of each Slam consists of: Job 100 produced 100 Slams, of which six were spoiled and classified as seconds. Seconds are sold to discount stores for 50 each. Required: 1. Under the assumption that the loss from spoilage will be distributed to all jobs produced during the current period, use general journal entries to (a) record the costs of production, (b) put spoiled goods into inventory, and (c) record the cash sale of spoiled units. 2. Under the assumption that the loss due to spoilage will be charged to Job 100, use general journal entries to (a) record the costs of production, (b) put spoiled goods into inventory, and (c) record the cash sale of spoiled units.
- 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.Evans, Inc., has a unit-based costing system. Evanss Miami plant produces 10 different electronic products. The demand for each product is about the same. Although they differ in complexity, each product uses about the same labor time and materials. The plant has used direct labor hours for years to assign overhead to products. To help design engineers understand the assumed cost relationships, the Cost Accounting Department developed the following cost equation. (The equation describes the relationship between total manufacturing costs and direct labor hours; the equation is supported by a coefficient of determination of 60 percent.) Y=5,000,000+30X,whereX=directlaborhours The variable rate of 30 is broken down as follows: Because of competitive pressures, product engineering was given the charge to redesign products to reduce the total cost of manufacturing. Using the above cost relationships, product engineering adopted the strategy of redesigning to reduce direct labor content. As each design was completed, an engineering change order was cut, triggering a series of events such as design approval, vendor selection, bill of materials update, redrawing of schematic, test runs, changes in setup procedures, development of new inspection procedures, and so on. After one year of design changes, the normal volume of direct labor was reduced from 250,000 hours to 200,000 hours, with the same number of products being produced. Although each product differs in its labor content, the redesign efforts reduced the labor content for all products. On average, the labor content per unit of product dropped from 1.25 hours per unit to one hour per unit. Fixed overhead, however, increased from 5,000,000 to 6,600,000 per year. Suppose that a consultant was hired to explain the increase in fixed overhead costs. The consultants study revealed that the 30 per hour rate captured the unit-level variable costs; however, the cost behavior of other activities was quite different. For example, setting up equipment is a step-fixed cost, where each step is 2,000 setup hours, costing 90,000. The study also revealed that the cost of receiving goods is a function of the number of different components. This activity has a variable cost of 2,000 per component type and a fixed cost that follows a step-cost pattern. The step is defined by 20 components with a cost of 50,000 per step. Assume also that the consultant indicated that the design adopted by the engineers increased the demand for setups from 20,000 setup hours to 40,000 setup hours and the number of different components from 100 to 250. The demand for other non-unit-level activities remained unchanged. The consultant also recommended that management take a look at a rejected design for its products. This rejected design increased direct labor content from 250,000 hours to 260,000 hours, decreased the demand for setups from 20,000 hours to 10,000 hours, and decreased the demand for purchasing from 100 component types to 75 component types, while the demand for all other activities remained unchanged. Required: 1. Using normal volume, compute the manufacturing cost per labor hour before the year of design changes. What is the cost per unit of an average product? 2. Using normal volume after the one year of design changes, compute the manufacturing cost per hour. What is the cost per unit of an average product? 3. Before considering the consultants study, what do you think is the most likely explanation for the failure of the design changes to reduce manufacturing costs? Now use the information from the consultants study to explain the increase in the average cost per unit of product. What changes would you suggest to improve Evanss efforts to reduce costs? 4. Explain why the consultant recommended a second look at a rejected design. Provide computational support. What does this tell you about the strategic importance of cost management?Classify Costs Following is a list of various costs incurred in producing replacement automobile parts. With respect to the production and sale of these auto parts, classify each cost as either variable, fixed, or mixed. 1. Oil used in manufacturing equipment 2. Plastic 3. Property taxes, 165,000 per year on factory building and equipment 4. Salary of plant manager 5. Cost of labor for hourly workers 6. Packaging 7. Factory cleaning costs, 6,000 per month 8. Metal 9. Rent on warehouse, 10,000 per month plus 25 per square foot of storage used 10. Property insurance premiums, 3,600 per month plus 0.01 for each dollar of property over 1,200,000 11. Straight-line depreciation on the production equipment 12. Hourly wages of machine operators 13. Electricity costs, 0.20 per kilowatt-hour 14. Computer chip (purchased from a vendor) 15. Pension cost, 1.00 per employee hour on the job
- Life Force Fitness, Inc., assembles and sells treadmills. Activity-based product information for each treadmill is as follows: 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 hour 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 the treadmill during final assembly. Thus, motor issues can be diagnosed and solved without having to disassemble the complete treadmill. This change will reduce the average rework per unit by one-quarter. a.Determine the new activity cost per unit under the rework improvement scenario. b.If management had the choice of doing the rework improvement in (a) or cutting the moving activity in half by improving the product flow, which decision should be implemented? Why?Gumbrecht Company has the following departmental manufacturing layout for one of its plants: A consulting firm has recommended a value stream with the following manufacturing cell: Required: 1. Calculate the total time it takes to produce a batch of 20 units using the traditional departmental manufacturing layout. 2. Using cellular manufacturing, how much time is saved producing the same batch of 20 units? Assuming the cell operates continuously, what is the production rate? Which process controls this production rate? 3. Assume the processing time of Casting is reduced to 9 minutes, while the times of the other processes stay the same. What is the production rate now, and how long will it take to produce a batch of 20 units if the cell is in a continuous production mode?Mabbut Company has the following departmental manufacturing layout for one of its plants: A consulting firm recommended a value stream with the following manufacturing cell: Required: 1. Calculate the total time it takes to produce a batch of 10 units using the traditional departmental manufacturing layout. 2. Using cellular manufacturing, how much time is saved producing the same batch of 10 units? Assuming the cell operates continuously, what is the production rate? Which process controls this production rate? 3. Assume the processing time of Welding is reduced to 6 minutes, while the times of the other processes stay the same. What is the production rate now, and how long will it take to produce a batch of 10 units if the cell is in a continuous production mode?
