Vermont Treats makes blueberry jam and blueberry syrup. Both products come out of a joint process 60,000 per year. The sales value of the blueberry jam is $20,000 per year. The sales value of the 80,000 per year. Use the relative sales value method to allocate the joint costs of the process to the products.
Q: Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after…
A: Answer:- Refund liability:- The amount of consideration that will be reimbursed to consumers that…
Q: Sunland Corporation reported the following results for its first three years of operation: 2020…
A: Solution: Correct answer : $ (2,310,000) Income before taxes = (3,300,000) Loss carryforward to 2022…
Q: The production manager of Rordan Corporation has submitted the following quarterly production…
A: Notes : Management prepares budget in order to estimate future profit and loss of the business.…
Q: shares Ashante Sports Collections Ltd. (ASCL) ended 20X5 with 985,000 common shares outstanding,…
A: EPS stands for Earnings Per Share which states that how much amount the business makes for every…
Q: Converting FIFO Inventory to Dollar-Value LIFO and Preparing Year-End Adjustments to the LIFO…
A: LIFO (Last in first out) This method is based on the idea that the most recent purchases in your…
Q: Learning Objective 3: Question 1: Straight-line Method Wired Inc. sold 10-year bonds with a total…
A: Answer:- Bonds:- Bonds are tradable assets that are securitized versions of corporate debt issued…
Q: Haliburton Mills Inc. is a large producer of men's and women's clothing. The company uses standard…
A: Since the question has multiple sub-parts, as per the guidelines only the first three sub-parts will…
Q: 4. Paying taxes on stocks What It Means to Invest in Stocks? Common stock is considered to be one of…
A: Assuming tax period 2022 As per the rules…
Q: Operating income and tax rates for Carla Vista Company's first three years of operations were as…
A: A deferred tax asset is an accounting concept that represents a future tax benefit that a company…
Q: Ginger Company operates a cafeteria for the benefit of its employees. The company subsidizes the…
A: Formula : Budgeted rate of variable cost per employee = Budgeted variable cost / Total budgeted…
Q: The adjusted trial balance of Blossom Company for the year ended December 31, 2020, is as follows:…
A: Income statement is referred to the financial statement which analyzes the financial performance of…
Q: With multiple products in a value stream, unit cost will increase if Group of answer choices more…
A: A value stream is a series of steps that are taken to deliver a product or service to the end…
Q: Flower Corporation pays for 40% of its raw materials purchases in the month of purchase and 60% in…
A: Disbursements refer to payments made by a company or an individual to settle an obligation or…
Q: Periodic and Perpetual Systems-Compute Inventory, Cost of Sales, and Gross Profit Using Average…
A: Date Particulars Purchase COGS Balance Units Unit Cost ($) Total ($) Units Unit Cost ($) Total…
Q: EXERCISE 5-6 Break-Even Analysis LO5-5 Mauro Products distributes a single product, a woven basket…
A: Formula : (1) Break even point in unit sales = Total fixed cost / unit contribution margin (2) Break…
Q: Listed below are costs (or discounts) to purchase or construct new plant assets. (1) Indicate…
A: The question is related to Classification of expenses to be capitalised or expensed. Capital…
Q: Indigo Inc., manufactures ice tea and would like to increase its market share in the North. In order…
A: While making decision making for cash outflow, we have to consider the effect of discounting and…
Q: Selected accounts from Ridley Company's adjusted trial balance for its December 31 year-end follow.…
A: Classified Balance sheet : Balance sheet shows assets,liabilities and capital of a company on a…
Q: Ultimate Butter Popcorn issues 7%, 10-year bonds with a face amount of $47,000. The market interest…
A: Issue price of bond means the price at which the bond is issued. It is the price which could be same…
Q: A company's net sales are $817,990, its costs of goods sold are $449,895, and its profit is…
A: Lets understand the basics. Gross profit margin is a margin generated on sales. It is derived by…
Q: e Item Description Segment Media Networks Segment Parks, Experiences, and Products Segment…
A: The contribution margin ratio is calculated as the difference between sales and variable costs. The…
Q: Question is attached thxn for the hepl ealpgwl gapreciated it i31ptj13pit
A: Provision for Uncollected Account Bad debts are accounts receivable, loans, or other liabilities…
Q: Milford Industries provides medical equipment to oncology and surgical units in major hospitals.…
A: Solution: Indirect cost rate = Total IDC allocation / Total direct labor hours Total IDC allocation…
Q: Tempanement product it manufactures. Company makes 30,000 units per year of a part it uses in the…
A: This question presents a decision-making scenario for Tempanement Company, which currently…
Q: Clean Aire Anti-Pollution Company is suffering declining sales of its principal product,…
A: Depreciation expense = (Asset cost - Salvage value) / Useful life
Q: Mo Salah is employed by Liverpool Limited. The normal working week is 45 hours. Mo Salah worked for…
A: The procedure used to determine and distribute employee salaries and wages is known as payroll.…
Q: Record the adjusting entry for uncollectible accounts.
A: Given in the question: Company estimates the future uncollectible accounts. The accounts receivable…
Q: at 10% annual interest compounded quarterly, how long will it takes to become a millionaire if you…
A: Time value of money concept says that a dollar amount invested today will have more value in future…
Q: Adger omers ser company that company provided the following fixed and variable cost estimates that…
A: Flexible budget is to be prepared for the actual activity. The fixed element under the flexible…
Q: [The following information applies to the questions displayed below.] Tiffany and Carlos decided to…
A: Liquidation refers to the process of closing a company and dispersing its assets to claims. Once the…
Q: Briefly explain the financial and/or managerial decisions that are made from creating a sales order…
A: Creating a sales order and a payment receipt are two critical documents in any business. The sales…
Q: Required information Skip to question [The following information applies to the questions displayed…
A: The perpetual inventory system is one of the inventory systems where the inventory is updated after…
Q: Selected accounts from Westeros Company's adjusted trial balance for the year ended December 31…
A: Income Statement is one of the first financial statement prepared after the adjusted trial balance.…
Q: Willie Nelson's Boots uses the conventional retail method to estimate ending inventory. Cost data…
A: Ending inventory refers to the value of the remaining goods or products that a company has at the…
Q: Cullumber Company Inc. had a beginning inventory of 120 units of Product RST at a cost of $7 per…
A: Weighted Average Method :— It is one of the method of inventory valuation in which it is assumed…
Q: When an individual owns directly stocks of the company, he has: Group of answer choices a. Direct…
A: Direct financial interest refers to a situation where an individual or entity has a financial stake…
Q: Tipton Corporation has gathered the following data on a proposed investment project (Ignore income…
A: Payback period is period required to recover initial amount of investment. This is quite simple…
Q: Data analytics are particularly important to the managerial accountant in what two areas? Multiple…
A: Ans. Data analytics can help companies to reduce cost by decision making of effective ways of doing…
Q: On April 5, 2022, Janeen Camoct took out an 8.25% loan for $24,000. The loan is due March 9, 2023.…
A: An interest rate is the amount of money that a lender charges a borrower for the use of money. It is…
Q: Account Cash Accounts Receivable Prepaid Rent Equipment Accumulated Depreciation Accounts Payable…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: Sunland Company is a multiproduct firm. Presented below is information concerning one of its…
A: The various methods for inventory valuation are FIFO, LIFO and average method. Using FIFO, the older…
Q: When using a contribution margin format for internal reporting purposes, the major distinction…
A: The contribution margin format is a financial statement format used to analyze the profitability of…
Q: Blue Enterprises is a large Canadian company traded on the Toronto Stock Exchange. Blue purchased…
A: Commercial organizations used journal entries to record their financial transactions in their…
Q: Shadee Corp, expects to sell 600 sun visors in May and 800 in June. Each visor sells for $18.…
A: Budgeted income statement is a planning tool many companies create at the beginning of the fiscal…
Q: Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and…
A: Variable costs are those costs which changes along with change in activity level or volume. Fixed…
Q: Prepare the non-current asset note. Your note should include the cost, as adjusted for additions and…
A: Non-current assets are long-term assets that are expected to provide benefits to a company for more…
Q: In which of the following classifications would cash dividend payments to stockholders be reported…
A: Cash Flow Statement :— It is one of the financial statement that shows change in cash and cash…
Q: Finished goods. Other... Total inventories. 791 369 $3,266 851 348 $3,379 Required a. Identify the…
A: On a company's financial records, inventories are valued using the LCNRV technique, which uses the…
Q: A tax accountant is told by his superior to take a position on a tax matter that is not supportable…
A: Ethics refers to a set of moral principles and values that guide behavior and decision-making in a…
Q: 36. Warren Electronics sells computers and provides hardware maintenance services. On April 1st,…
A: Note : As per revenue recognition principle revenue must be recognised as it is earned.
Vermont Treats makes blueberry jam and blueberry syrup. Both products come out of a joint process 60,000 per year. The sales value of the blueberry jam is $20,000 per year. The sales value of the 80,000 per year. Use the relative sales value method to allocate the joint costs of the process to the products.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Dimitri Designs has capacity to produce 30,000 desk chairs per year and is currently selling all 30,000 for $240 each. Country Enterprises has approached Dimitri to buy 800 chairs for $210 each. Dimitris normal variable cost is $165 per chair, including $50 per unit in direct labor per chair. Dimitri can produce the special order on an overtime shift, which means that direct labor would be paid overtime at 150% of the normal pay rate. The annual fixed costs will be unaffected by the special order and the contract will not disrupt any of Dimitris other operations. What will be the impact on profits of accepting the order?Marcotti Cupcakes bakes and sells a basic cupcake for $1.25. The cost of producing 600,000 cupcakes in the prior year was: At the start of the current year, Marcotti received a special order for 15,000 cupcakes to be sold for $1.10 per cupcake. To complete the order, the company must incur an additional $700 in total fixed costs to lease a special machine that will stamp the cupcakes with the customers logo. This order will not affect any of Marcottis other operations and it has excess capacity to fulfill the contract. Should the company accept the special order? (Show your work.)Gelbart Company manufactures gas grills. Fixed costs amount to 16,335,000 per year. Variable costs per gas grill are 225, and the average price per gas grill is 600. Required: 1. How many gas grills must Gelbart Company sell to break even? 2. If Gelbart Company sells 46,775 gas grills in a year, what is the operating income? 3. If Gelbart Companys variable costs increase to 240 per grill while the price and fixed costs remain unchanged, what is the new break-even point?
- 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.Jonfran Company manufactures three different models of paper shredders including the waste container, which serves as the base. While the shredder heads are different for all three models, the waste container is the same. The number of waste containers that Jonfran will need during the following years is estimated as follows: The equipment used to manufacture the waste container must be replaced because it is broken and cannot be repaired. The new equipment would have a purchase price of 945,000 with terms of 2/10, n/30; the companys policy is to take all purchase discounts. The freight on the equipment would be 11,000, and installation costs would total 22,900. The equipment would be purchased in December 20x4 and placed into service on January 1, 20x5. It would have a five-year economic life and would be treated as three-year property under MACRS. This equipment is expected to have a salvage value of 12,000 at the end of its economic life in 20x9. The new equipment would be more efficient than the old equipment, resulting in a 25 percent reduction in both direct materials and variable overhead. The savings in direct materials would result in an additional one-time decrease in working capital requirements of 2,500, resulting from a reduction in direct material inventories. This working capital reduction would be recognized at the time of equipment acquisition. The old equipment is fully depreciated and is not included in the fixed overhead. The old equipment from the plant can be sold for a salvage amount of 1,500. Rather than replace the equipment, one of Jonfrans production managers has suggested that the waste containers be purchased. One supplier has quoted a price of 27 per container. This price is 8 less than Jonfrans current manufacturing cost, which is as follows: Jonfran uses a plantwide fixed overhead rate in its operations. If the waste containers are purchased outside, the salary and benefits of one supervisor, included in fixed overhead at 45,000, would be eliminated. There would be no other changes in the other cash and noncash items included in fixed overhead except depreciation on the new equipment. Jonfran is subject to a 40 percent tax rate. Management assumes that all cash flows occur at the end of the year and uses a 12 percent after-tax discount rate. Required: 1. Prepare a schedule of cash flows for the make alternative. Calculate the NPV of the make alternative. 2. Prepare a schedule of cash flows for the buy alternative. Calculate the NPV of the buy alternative. 3. Which should Jonfran domake or buy the containers? What qualitative factors should be considered? (CMA adapted)Venezuela Oil Inc. transports crude oil to its refinery where it is processed into main products gasoline, kerosene, and diesel fuel, and by-product base oil. The base oil is sold at the split-off point for $1,000,000 of annual revenue, and the joint processing costs to get the crude oil to split-off are $10,000,000. Additional information includes: Required: Determine the allocation of joint costs using the net realizable value method, rounding the sales value percentages to the nearest tenth of a percent. (Hint: Reduce the amount of the joint costs to be allocated by the amount of the by-product revenue.)
- Taylor Company produces two industrial cleansers that use the same liquid chemical input: Pocolimpio and Maslimpio. Pocolimpio uses two quarts of the chemical for every unit produced, and Maslimpio uses five quarts. Currently, Taylor has 6,000 quarts of the material in inventory. All of the material is imported. For the coming year, Taylor plans to import 6,000 quarts to produce 1,000 units of Pocolimpio and 2,000 units of Maslimpio. The detail of each products unit contribution margin is as follows: Taylor Company has received word that the source of the material has been shut down by embargo. Consequently, the company will not be able to import the 6,000 quarts it planned to use in the coming years production. There is no other source of the material. Required: 1. Compute the total contribution margin that the company would earn if it could import the 6,000 quarts of the material. 2. Determine the optimal usage of the companys inventory of 6,000 quarts of the material. Compute the total contribution margin for the product mix that you recommend. 3. Assume that Pocolimpio uses three direct labor hours for every unit produced and that Maslimpio uses two hours. A total of 6,000 direct labor hours is available for the coming year. a. Formulate the linear programming problem faced by Taylor Company. To do so, you must derive mathematical expressions for the objective function and for the materials and labor constraints. b. Solve the linear programming problem using the graphical approach. c. Compute the total contribution margin produced by the optimal mix.Abilene Industries manufactures and sells three products (XX, W, and ZZ). The sales price and unit variable cost for the three products are as follows: Their sales mix is reflected as a ratio of 4:2:1. Annual fixed costs shared by the three products are $345.000 per year. What are total variable costs for Abilene with their current product mix? Calculate the number of units of each product that will need to be sold in order for Abilene to break even. What is their break-even point in sales dollars? Using an income statement format, prove that this is the break-even point.Markson and Sons leases a copy machine with terms that include a fixed fee each month plus acharge for each copy made. Markson made 9,000 copies and paid a total of $480 in January. In April, they paid $320 for 5,000 copies. What is the variable cost per copy if Markson uses the high-low method to analyze costs?
- Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit variable cost for the three products are as follows: Their sales mix s reflected as a ratio of 5:3:2. Annual fixed costs shared by the three products are $25,000 per year. What are total variable costs for Morris with their current product mix? Calculate the number of units of each product that will need to be sold in order for Morris to break even. What is their break-even point in sales dollars? Using an income statement format, prove that this is the break-even point.Hatch Manufacturing produces multiple machine parts. The theoretical cycle time for one of its products is 65 minutes per unit. The budgeted conversion costs for the manufacturing cell dedicated to the product are 12,960,000 per year. The total labor minutes available are 1,440,000. During the year, the cell was able to produce 0.6 units of the product per hour. Suppose also that production incentives exist to minimize unit product costs. Required: 1. Compute the theoretical conversion cost per unit. 2. Compute the applied conversion cost per minute (the amount of conversion cost actually assigned to the product). 3. Discuss how this approach to assigning conversion cost can improve delivery time performance. Explain how conversion cost acts as a performance driver for on-time deliveries.Cinnamon Depot bakes and sells cinnamon rolls for $1.75 each. The cost of producing 500,000 rolls in the prior year was: At the start of the current year, Cinnamon Depot received a special order for 18,000 rolls to be sold for $1.50 per roll. The company estimates it will incur an additional $1,000 in total fixed costs in order to lease a special machine that forms the rolls in the shape of a heart per the customers request. This order will not affect any of its other operations. Should the company accept the special order? (Show your work.)