Financial & Managerial Accounting
13th Edition
ISBN: 9781305480490
Author: WARREN
Publisher: Cengage
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Chapter 27, Problem 27.17EX
To determine
Pareto Chart: Pareto Chart is a combination of line and bar graph shown together. It represents the totals of the attributes and their categories. So it shows the categories left to right with the largest total attribute on the left.
To Prepare: A Pareto Chart for the given information.
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During the current year, Pitt Company incurred costs to
develop and produce a routine, low-risk computer software
product.
1,300,000
Completion of detailed program design
Costs incurred for coding and testing to
establish technological feasibility
Other coding costs after establishment
of technological feasibility
Other testing costs after establishment
of technological feasibility
Costs of producing product masters for
training materials
Duplication of computer software and
training materials from product
masters (1,000 units)
Packaging product (500 units)
3. In the year-end statement of financial position, what
amount should be capitalized as software cost?
1,000,000
2,400,000
2,000,000
1,500,000
2,500,000
900,000
a. 5,400,000
b. 5,700,000
c. 5,900,000
d. 6,900,000
During the current year, Pitt Company incurred costs to
develop and produce a routine, low-risk computer software
product.
1,300,000
Completion of detailed program design
Costa incurred for coding and testing to
establish technological feasibility
Other coding costs after establishment
of technological feasibility
Other testing costs after establishment
of technological feasibility
Costs of producing product masters for
training materials
Duplication of computer software and
training materials from product
masters (1,000 units)
Packaging product (500 units)
1,000,000
2,400,000
2,000,000
1,500,000
2,500,000
1. In the year-end statement of financial position, what
amount should be reported in inventory?
a. 2,500,000
b. 3,400,000
c. 4,000,000
d. 4,900,000
2. What total amount of the costs incurred should be
expensed immediately?
a. 8,200,000
b. 2,300,000
c. 6,700,000
d. 4,400,000
3. In the year-end statement of financial position, what
amount should be capitalized as software cost?
a.…
Cost of Quality Report
Meagher Solutions Inc. manufactures memory chips for personal computers. An activity analysis was conducted, and the following activity costs were identified with the manufacture and sale of memory chips:
a. Identify the cost of quality classification for each activity.
Quality Activities
Activity Cost
Quality Cost Classification
Correct shipment errors
$150,000
Disposing of scrap
95,000
Emergency equipment maintenance
125,000
Employee training
50,000
Final inspection
80,000
Inspecting incoming materials
60,000
Preventive equipment maintenance
40,000
Processing customer returns
90,000
Scrap reporting
45,000
Supplier development
15,000
Warranty claims
250,000
Total
$1,000,000
b. Prepare a cost of quality report. Assume that the sales for the period were $4,000,000. If required, round percents to one decimal place.
Meagher Solutions Inc.
Cost of Quality Report
Quality…
Chapter 27 Solutions
Financial & Managerial Accounting
Ch. 27 - Prob. 1DQCh. 27 - Prob. 2DQCh. 27 - Why is a product-oriented layout preferred by lean...Ch. 27 - Prob. 4DQCh. 27 - Prob. 5DQCh. 27 - Why would a lean manufacturer strive to produce...Ch. 27 - Prob. 7DQCh. 27 - Prob. 8DQCh. 27 - Prob. 9DQCh. 27 - Why is the direct labor cost category eliminated...
Ch. 27 - Prob. 11DQCh. 27 - Prob. 12DQCh. 27 - Prob. 13DQCh. 27 - Prob. 27.1APECh. 27 - Prob. 27.1BPECh. 27 - Prob. 27.2APECh. 27 - Lean features Which of the following are features...Ch. 27 - Lean accounting The annual budgeted conversion...Ch. 27 - Prob. 27.3BPECh. 27 - Prob. 27.4APECh. 27 - Prob. 27.4BPECh. 27 - Process activity analysis Lexter Company incurred...Ch. 27 - Prob. 27.5BPECh. 27 - Prob. 27.1EXCh. 27 - Prob. 27.2EXCh. 27 - Lean principles Active Apparel Company...Ch. 27 - Lead time analysis Palm Pals Inc. manufactures toy...Ch. 27 - Reduce setup time Hammond Inc. has analyzed the...Ch. 27 - Calculate lead time Flint Fabricators Int....Ch. 27 - Calculate lead time Williams Optical Inc. is...Ch. 27 - Prob. 27.8EXCh. 27 - Prob. 27.9EXCh. 27 - Prob. 27.10EXCh. 27 - Prob. 27.11EXCh. 27 - Lean principles for a restaurant The management of...Ch. 27 - Prob. 27.13EXCh. 27 - Prob. 27.14EXCh. 27 - Prob. 27.15EXCh. 27 - Prob. 27.16EXCh. 27 - Prob. 27.17EXCh. 27 - Prob. 27.18EXCh. 27 - Prob. 27.19EXCh. 27 - Prob. 27.20EXCh. 27 - Process activity analysis The Brite Beverage...Ch. 27 - Prob. 27.22EXCh. 27 - Prob. 27.23EXCh. 27 - Prob. 27.1APRCh. 27 - Lead time Sound Tek Inc. manufactures electronic...Ch. 27 - Lean accounting Formula One Displays Inc....Ch. 27 - Pareto chart and cost of quality report for a...Ch. 27 - Prob. 27.1BPRCh. 27 - Lead time Master Chef Appliance Company...Ch. 27 - Lean accounting Com-Tel Inc. manufactures and...Ch. 27 - Pareto chart and cost of quality report for a...Ch. 27 - Prob. 27.1CPCh. 27 - Prob. 27.2CPCh. 27 - Prob. 27.3CPCh. 27 - Prob. 27.4CP
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