You are interviewing for an accountant position with Smith Industries. There are several candidates, and you intend to stand out. You learn the company is not satisfied with the timeliness of its information and its inventory management. The company manufactures custom-order holiday decorations and display items. To show your abilities, you plan to recommend the company use a job order accounting system., include recommendations and why a job order costing system would be advantageous to the company.
Q: ratios
A: Ratios play a key role in understanding a given situation. You can also distribute financials and…
Q: At December 31, 2020, the end of its first year of operations, the non-trading securities for Oriole…
A: A journal entry is used to record a business in the company's accounting records. A journal entry…
Q: SENYORA Manufacturing Company applies process costing in the manufacture of its sole product,…
A: Process costing is used by companies where the products have to pass through multiple processes in…
Q: Use the following information of Alfred Industries. Standard manufacturing overhead based on normal…
A: INTRODUCTION: A variation in accounting is the difference between an actual number and a budgeted,…
Q: Neelon Corporation has two divisions: Southern Division and Northern Division. The following data…
A: Solution We are given the following data of Northern Division Sales = $ 129,400 Variable expenses =…
Q: A manufacturing company that produces a single product has provided the following data concerning…
A: Under the absorption costing system, the fixed manufacturing overhead cost would be considered as…
Q: Dake Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and…
A: Product costs It is the direct costs involved in producing a product. It includes direct labor, raw…
Q: Syed and Hana a newlywed bought furniture sets for their new house and received an invoice a follows…
A: Cash discount refers to the incentive which seller provides to the buyer in return for paying off…
Q: The following data were accumulated for use in reconciling the bank account of Creative Design Co.…
A: A document known as a bank reconciliation statement compares the cash balance on a company's balance…
Q: A corporation purchases 10,000 shares of its own $20 par common stock for $35 per share, recording…
A: The amount of a company's assets that are still in its ownership after all obligations have been…
Q: Prepare the journal entries for all the above transactions with narrations. Post the transactions to…
A: A Journal entry is the entry which is the first entry which is recorded on the books of accounts of…
Q: A company began the accounting period with $50,000 in owner’s capital, ended with $75,000 in owner’s…
A: Net income represents the overall profitability of a company after all expenses and costs have been…
Q: Johnstone Company is facing several decisions regarding investing and financing activities. Address…
A: 1) To determine the value of the equipment, we can use the present value of an annuity formula: PV =…
Q: Is the following statement correct regarding exclusions or deductions? Cancellation of debt for a…
A: Cancellation of debt for a taxpayer's credit card bill is not a deduction from federal gross income.…
Q: Stag, a public limited company, is preparing its financial statements for the year ending 31…
A: In 2020, the revaluation of the asset would have resulted in an increase in the carrying value of…
Q: Crane Company has a balance in its Accounts Receivable control account of $11,400 on January 1,…
A: Lets understand the basics. Account receivable control account is an account maintained in general…
Q: Rivera Company purchased a tooling machine on January 3, 2004 for P500,000. The machine was being…
A: Depreciation seems to be the decline in the value of the company's tangible fixed assets, and it is…
Q: (a) In accordance with the appropriate standards, explain the differences between the cost and…
A: The cost model of Property, Plant and Equipment (PPE) is the most common method used to measure PPE.…
Q: The answer is, $4,880, you forgot to add the mileage. Mileage is .16 X 500= $80 + $4,800= $4,880
A: The government allows an individual to take a deduction of any amount spent on medicare services.…
Q: 66,000 Year ended 30 June 2018 87,000 Dee commenced in self-employment on 6 April 2014. She…
A: To calculate the trading income assessments of Ae, Bee, and Cae for each of the tax years 2015-16,…
Q: Data concerning Lemelin Corporation's single product appear below: Selling price Variable expenses…
A: Particulars Current Proposed Sales (230*7000)=$1,610,000 212*(7000+1600)=$1,823,200 Variable…
Q: Contribution Margin and Contribution Margin Ratio For a recent year, McDonald's (MCD) company-owned…
A: The contribution margin is the fraction of a product's sales revenue that is allocated to covering…
Q: A company runs into financial distress and needs cash immediately. It sells a factory that's listed…
A: The income statement, balance sheet, and statement of cash flows are required financial statements.…
Q: earnings per share
A: Dividends are paid out to shareholders from the net income of the firm. However, various…
Q: Exercise 3: On 2 January 2014 Tokyo Co. lease large equipment from China Co. for four year at annual…
A: Lets understand the basics. Lease is having two types. (1) Operating lease (2) Finance lease…
Q: taxes
A: The government gathers social security tax from taxpayers to pay the people on their retirement.…
Q: Which of the following is NOT one of the four items required to be shown in the heading of a…
A: Financial statements are written records that convey the business activities and the financial…
Q: Mark each of the accounts listed in the following table as follows: a. In column (1), indicate in…
A: Current assets= Means an asset which are meant for sale and amount can be recovered easily Fixed…
Q: Cost-volume-profit analysis is used to make many decisions, including product pricing and…
A:
Q: inventory
A: A reduction in the market price greatly impacts the closing stock and the profitability. It’s…
Q: On March 1, 2021, Gold Examiner receives $166,000 from a local bank and promises to deliver 96 units…
A: Lets understand the basics. Revenue recognition needs to do using the IFRS 15 "Revenue from…
Q: Buffalo Company offers a set of building blocks to customers who send in 3 UPC codes from Buffalo…
A: Journal entry is the primary step to record the transactions in the books of accounts. Adjustment…
Q: Cost-volume-profit analysis is used to make many decisions, including product pricing and…
A: Cost volume profit analysis or break-even analysis is a tool used for making short-term financial…
Q: On Oct 1, 2018, Net Solutions purchased a piece of high-tech equipment for $384,000, which is…
A: The depreciation cost is the same each year. Depreciation costs are recorded in order to spread out…
Q: A C make up the post-closing trial balance, which consist of cash, liability, and equity accounts B…
A: Trial balance records the balances of all the accounts of the business through ledger accounts. The…
Q: The debits to Work-in-Process for Department #2 for the month of April of the current year, together…
A: Introduction Equivalent units of production is a concept used in the process costing, which is used…
Q: 1-The movements in the raw materials balance in a company within the month of May are as follows.…
A: FIFO Method :— In this method, beginning inventory and old purchases is used first for output or…
Q: sunk cost
A: A sunk cost is actually money that has been spent already and can’t be recovered. Such a cost can…
Q: Z Company operates a snack bar in front of M University. 80% of its regular clients/customers are…
A: The shut down point is the point at which the company would be better off shutting down the…
Q: On April 6, Year 1, Home Furnishings purchased $25,200 of merchandise from Una Imports, terms 2/10…
A: Financial Statements: Financial statements are the standardized forms used to present a company's or…
Q: 2. Assume that OfficeMart places orders more frequently, but everything else remains the same. On…
A: 2. Based on the given information, Perform the first stage allocations Assembling Units…
Q: operating income
A: Operating leverage determines how much a firm’s net income changes according to the change in sales.…
Q: Sonny, who invested P15,500 had P19,900 returned to him 4 years and 4 months later. At what rate of…
A: Time Value of Money :— According to this concept, value of money in present day is greater than the…
Q: Each morning, Joel McKnight stocks the drink case at Joel's Beach Hut in Myrtle Beach, South…
A: Product mix analysis is a tool to identify the optimum utilization of all the resources available to…
Q: On May 5, 2019, MacDougal Corp. exchanged 2,000 shares of its P25 par value ordinary treasury shares…
A: As per IAS 38 Initial measurement of Intangible Assets should be done at cost.
Q: During 2022, Brownie Company incurred research and development cost of P272,000 relating to the…
A: As per IAS 38 Intangible assets the cost incurred for research and development should be written off…
Q: Cost-volume-profit analysis is used to make many decisions, including product pricing and…
A: The cost volume profit analysis is used to assess how the firm’s profit is affected if there is a…
Q: Keomuangtai Corporation produces and sells a single product. The company has provided its…
A: Cost volume profit analysis is the technique used by management for decision-making. The methods…
Q: A student wants to deposit RM 50 into his savings account every quarter for 6 years. The interest…
A: Time Value Of Money :— According to this concept, value of money in present day is greater than the…
Q: According to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, an entity must…
A: The conditions under which it may be appropriate to change accounting policy in accordance with IAS…
You are interviewing for an accountant position with Smith Industries. There are several candidates, and you intend to stand out. You learn the company is not satisfied with the timeliness of its information and its inventory management. The company manufactures custom-order holiday decorations and display items.
To show your abilities, you plan to recommend the company use a job order accounting system., include recommendations and why a
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- In a team of two or three students, interview the manager/owner of a local business. In this interview, ask the manager/owner the following questions: A. Does the business collect and use cost information to make decisions? B. Does it have a specialist in cost estimation who works with this cost data? If not, who is responsible for the collection of cost information? Be as specific as possible. C. What type of cost information does the business collect and how is each type of information used? D. How important does the owner/manager believe cost information is to the success of the business? Then, write a report to the instructor summarizing the results of the interview. Content of the memo must include date of the interview, the name and title of the person interviewed, name and location of the business, type of business (service, merchandising, manufacturing) and brief description of the goods/services provided by the business, and responses to questions A-D.A job order costing system is most likely used by which of the following? a pet food manufacturer a paper manufacturing company an accounting firm specializing in tax returns a stereo manufacturing companyDarnell Poston, owner of Poston Manufacturing, Inc., wants to determine the cost behavior of labor and overhead. Darnell pays his workers a salary; during busy times, everyone works to get the orders out. Temps (temporary workers hired through an agency) may be hired to pack and prepare completed orders for shipment. During slower times, Darnell catches up on bookkeeping and administrative tasks while the salaried workers do preventive maintenance, clean the lines and building, etc. Temps are not hired during slow times. Darnell found that workers salaries, temp agency payments, rentals, utilities, and plant and equipment depreciation are the largest dollar accounts. He believes that workers salaries and plant and equipment depreciation are fixed, temp agency payments are associated with the number of orders (since temp workers are used to pack and prepare completed orders for shipment), and electricity is associated with the number of machine hours. When the number of different parts stored by Poston exceeds the space in the materials storeroom, Darnell rents nearby warehouse space. He can rent as much or as little space as he wants on a month-to-month basis. Therefore, he believes warehouse rental payments are variable with the number of parts purchased and stored. The account balances for the past six months as well as the six-month total are as follows: Information on number of machine hours, orders, and parts for the six-month period follows: Required: 1. Calculate the monthly average account balance for each account. Calculate the average monthly amount for each of the three drivers. 2. Calculate fixed monthly cost and the variable rates for temp agency payments, warehouse rent, and electricity. Express the results in the form of an equation for total cost. 3. In July, Darnell predicts there will be 420 orders, 250 parts, and 5,900 machine hours. What is the total labor and overhead cost for July? 4. What if Darnell buys a new machine in July for 24,000? The machine is expected to last 10 years and will have no salvage value at the end of that time. What part of the cost equation will be affected? How? What is the new expected cost in July?
- Assume you are the manager for the semi-trucks division at the Speedy Delivery Company. The semi-truck division is a cost center and you are reviewing the driver overtime costs for the previous year, shown here: A. Microsoft Excel or another spreadsheet application, create a line chart with markers showing the driver overtime expense. Describe your observations. B. Knowing that safety is important in your industry and weather plays a significant role in the safety of drivers, you decide to talk with the safety manager and obtained the following information: Using Microsoft Excel or another spreadsheet application, create individual line charts with markers showing the average snowfall and non-company highway accidents. Describe your observations and actions you might consider.Stan is opening a coffee shop next to Big State University. He knows that controlling his costs will be important to the success of the shop. He will not be able to work all the hours the shop is open, so the employees will need some guidelines to perform their jobs correctly. After talking to an accounting professor, he decides he needs a standard cost system for his shop. Describe the process Stan should follow in setting his standards for materials and labor.Ventana Window and Wall Treatments Company provides draperies, shades, and various window treatments. Ventana works with the customer to design the appropriate window treatment, places the order, and installs the finished product. Direct materials and direct labor costs are easy to trace to the jobs. Ventanas income statement for last year is as follows: Ventana wants to find a markup on cost of goods sold that will allow them to earn about the same amount of profit on each job as was earned last year. Required: 1. What is the markup on cost of goods sold (COGS) that will maintain the same profit as last year? (Round the percentage to two significant digits.) 2. A customer orders draperies and shades for a remodeling job. The job will have the following costs: What is the price that Ventana will quote given the markup percentage calculated in Requirement 1? (Round the price to the nearest dollar.) 3. What if Ventana wants to calculate a markup on direct materials cost, since it is the largest cost of doing business? What is the markup on direct materials cost that will maintain the same profit as last year? (Round the percentage to two significant digits.) What is the bid price Ventana will use for the job given in Requirement 2 if the markup percentage is calculated on the basis of direct materials cost? (Round to the nearest dollar.)
- You are a management accountant for Time Treasures Company, whose company has recently signed an outsourcing agreement with Spotless. Inc., a janitorial service company. Spotless will provide all of Time Treasures janitorial services, including sweeping floors, hauling trash, washing windows, stocking restrooms, and performing minor repairs. Time Treasures will be billed at an hourly rate based on the type of service performed. The work of common laborers (sweeping, hauling trash) is to be billed at $8 per hour. More skilled (repairs) and more dangerous work (washing outside windows on the 23rd floor) are to be billed at $18 per hour. Supervisory time is to be billed at $20 per hour. Spotless will submit monthly invoices, which will show the number and types of hours for which Time Treasures is being charged. The outsourcing contract is simple and straightforward. A. What are some of the internal control problems you foresee as a result of our sourcing the janitorial service with this contract? B. Explain recommendations to control risk that would you suggest after reviewing the contract.Assume that you are preparing for a second interview with a manufacturing company. The company is impressed with your credentials, but it has several qualified applicants. You anticipate that in this second interview, you must show what you offer over other candidates. You learn the company is not satisfied with the timeliness of its information and its inventory management. The company manufactures custom-order holiday decorations and display items. To show your abilities, you plan to recommend that the company use a job order accounting system. Required In preparation for the interview, prepare notes outlining the following: 1. Your recommendation and why it is suitable for this company. 2. A general description of the documents that the proposed system requires. 3. How the documents in part 2 facilitate the operation of the job order accounting system.You have just been hired by Ogden Company to fill a new position that was created in response to rapidgrowth in sales. It is your responsibility to coordinate shipments of finished goods from the factory to distribution warehouses located in various parts of the United States so that goods will be available as ordersare received from customers.The company is unsure how to classify your annual salary in its cost records. The company’s costanalyst says that your salary should be classified as a manufacturing (product) cost; the controller says thatit should be classified as a selling expense; and the president says that it doesn’t matter which way yoursalary cost is classified.Required:1. Which viewpoint is correct? Why?2. From the point of view of the reported net operating income for the year, is the president correct in hisstatement that it doesn’t matter which way your salary cost is classified? Explain.
- You work for a CPA firm that has been hired by Widget Tek, a merchandising company that is getting ready to expand. The president of Widget Tek is concerned with obtaining a loan for the expansion and wants to be sure that all the financial statements accurately reflect the company’s accounting records. As preparation for this assignment, you have been asked to review the effects of changing prices on three inventory costing methods: LIFO, FIFO, and weighted average. Identify the scenarios and inventory methods that result in the highest and lowest values for each item listed. Enter “Highest”, “Lowest”, or leave the box blank. Cost of Merchandise Sold Ending Merchandise Inventory Net Income LIFO, when prices are rising FIFO, when prices are falling FIFO, when prices are rising Weighted average, when prices are rising Weighted average, when prices are falling LIFO, when prices are fallingThe following situations describe decision scenarios that could use managerial accounting information: The manager of High Times Restaurant wishes to determine the price to charge for various lunch plates. By evaluating the cost of leftover materials, the plant manager of a precision tool facility wishes to determine how effectively the plant is being run. The division controller of West Coast Supplies needs to determine the cost of products left in inventory. The manager of the Maintenance Department of a large manufacturing company wishes to plan next year’s anticipated expenditures. For each situation, discuss how managerial accounting information could be used. b) What are the major differences between managerial accounting and financial accounting?The following situations describe decision scenarios that could use managerial accounting information:1. The manager of High Times Restaurant wants to determine the price to charge for various lunch plates.2. By evaluating the cost of leftover materials, the plant manager of a precision tool facility wants to determine how effectively the plant is being run.3. The division controller of West Coast Supplies needs to determine the cost of products left in inventory.4. The manager of the Maintenance Department of a large manufacturing company wants to plan next year’s anticipated expenditures.For each situation, discuss how managerial accounting information could be used.
