MANAGERIAL ACCOUNTING FUND. W/CONNECT
5th Edition
ISBN: 9781259688713
Author: Wild
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 9, Problem 3PSA
To determine
Concept introduction:
Departmental Income Statements
Departmental Income statements are prepared for the calculation of net
Preparation of Departmental Income Statement of WILLIAMS COMPANY.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Jack Jones, the materials manager at Precision Enterprises, is beginning to look for ways to reduce inventories. A
recent accounting statement shows that the inventory investment for raw materials is $4,076, 100, for work-in-process
is $6,888,000, and for finished goods is $2,994,000. This year's cost of goods sold will be about $30,108,000. Assume
that there are 52 business weeks per year.
a. Express total inventory as weeks of supply.
The weeks of supply is weeks. (Enter your response rounded to one decimal place.)
27
**
Coral Seas Jewelry Company makes and sells costume jewelry. For the coming year, Coral Seas expects sales of $16,100,000 and cost of goods sold of $8,855,000. Advertising is a key part of Coral Seas' business strategy, and total marketing expense for the year is budgeted at $2,898,000. Total administrative expenses are expected to be $644,000. Coral Seas has no interest expense. Income taxes are paid at the rate of 40 percent of operating income.
Required:
Question Content Area
1. Construct a budgeted income statement for Coral Seas Jewelry Company for the coming year.
Coral Seas Jewelry CompanyBudgeted Income StatementFor the Coming Year
$- Select -
- Select -
Gross margin
$fill in the blank ade044f46060001_5
Less:
$- Select -
- Select -
- Select -
Operating income
$fill in the blank ade044f46060001_11
- Select -
$- Select -
Question Content Area
2. What if Coral Seas had interest payments of $483,000…
During the first calendar quarter of 2016, Clinton Corporation is planning to manufacture a new product and introduce it in two regions. Market research indicates that sales will be 10,000 units in the urban region at a unit price of $53 and 9,000 units in the rural region at $48 each. Because the sales manager expects the product to catch on, he has asked for production sufficient to generate a 8,000-unit ending inventory. The production manager has furnished the following estimates related to manufacturing costs and operating expenses:
Variable
Fixed
(per unit)
(total)
Manufacturing costs:
Direct materials
A (4 lb. @ $3.15/lb.)
$12.60
-
B (2 lb. @ $4.65/lb.)
9.30
-
Direct labor (0.5 hours per unit)
7.50
-
Manufacturing overhead:
Depreciation
-
$7,650
Factory supplies
0.90
4,500
Supervisory salaries
-
28,800
Other
0.75
22,950
Operating expenses:…
Chapter 9 Solutions
MANAGERIAL ACCOUNTING FUND. W/CONNECT
Ch. 9 - Prob. 1MCQCh. 9 - Prob. 2MCQCh. 9 - Prob. 3MCQCh. 9 - Prob. 4MCQCh. 9 - 5. Using the data in question 4, Department X’s...Ch. 9 - Prob. 1DQCh. 9 - Prob. 2DQCh. 9 - Prob. 3DQCh. 9 - Prob. 4DQCh. 9 - Prob. 5DQ
Ch. 9 - Prob. 6DQCh. 9 - Prob. 7DQCh. 9 - Prob. 8DQCh. 9 - Prob. 9DQCh. 9 - Prob. 10DQCh. 9 - Prob. 11DQCh. 9 - Prob. 12DQCh. 9 - Prob. 13DQCh. 9 - Prob. 14DQCh. 9 - Prob. 15DQCh. 9 - Prob. 16DQCh. 9 - Prob. 17DQCh. 9 - Prob. 18DQCh. 9 - Prob. 19DQCh. 9 - Prob. 20DQCh. 9 - Prob. 1QSCh. 9 - Prob. 2QSCh. 9 - Prob. 3QSCh. 9 - In each blank next to the following terms, place...Ch. 9 - Prob. 5QSCh. 9 - In each blank to the following terms, place the...Ch. 9 - Car Mart pays $130,000 rent ecah year for its...Ch. 9 - Prob. 8QSCh. 9 - Compute return on investment for each of the...Ch. 9 - Computing residual income A1 Refer to the...Ch. 9 - Prob. 11QSCh. 9 - Computing profit margin and investment turnover A2...Ch. 9 - Classify each the performance measures below into...Ch. 9 - Prob. 14QSCh. 9 - Prob. 15QSCh. 9 - Prob. 16QSCh. 9 - Prob. 17QSCh. 9 - Prob. 18QSCh. 9 - Prob. 19QSCh. 9 - Prob. 1ECh. 9 - Prob. 2ECh. 9 - Prob. 3ECh. 9 - Prob. 4ECh. 9 - Prob. 5ECh. 9 - Prob. 6ECh. 9 - Jansen Company reports the following for its ski...Ch. 9 - Prob. 8ECh. 9 - Prob. 9ECh. 9 - Prob. 10ECh. 9 - Prob. 11ECh. 9 - Prob. 12ECh. 9 - Prob. 13ECh. 9 - Prob. 14ECh. 9 - Exercise 22-16 Performance measures-balanced...Ch. 9 - Oakwood Company produces maple bookcases to...Ch. 9 - Best Ink produces ink-jet printers for personal...Ch. 9 - The trailer division of Baxter Bicycles makes bike...Ch. 9 - Prob. 19ECh. 9 - Prob. 20ECh. 9 - Prob. 21ECh. 9 - Prob. 1PSACh. 9 - National Bank has several departments that occupy...Ch. 9 - Prob. 3PSACh. 9 - Prob. 4PSACh. 9 - Prob. 5PSACh. 9 - Prob. 1PSBCh. 9 - Harmons has several departments that occupy all...Ch. 9 - Prob. 3PSBCh. 9 - Sadar Company operates a store with two...Ch. 9 - Prob. 5PSBCh. 9 - Santana Reys two departments, computer consulting...Ch. 9 - Prob. 1BTNCh. 9 - Prob. 2BTNCh. 9 - Prob. 3BTNCh. 9 - Prob. 4BTNCh. 9 - Prob. 5BTNCh. 9 - Prob. 6BTNCh. 9 - Brian Lintons company, United By Blue, sells...Ch. 9 - Prob. 8BTNCh. 9 - Prob. 9BTN
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Coral Seas Jewelry Company makes and sells costume jewelry. For the coming year, Coral Seas expects sales of $16,300,000 and cost of goods sold of $8,965,000. Advertising is a key part of Coral Seas' business strategy, and total marketing expense for the year is budgeted at $2,934,000. Total administrative expenses are expected to be $652,000. Coral Seas has no interest expense. Income taxes are paid at the rate of 40 percent of operating income. Required: Question Content Area 1. Construct a budgeted income statement for Coral Seas Jewelry Company for the coming year. Coral Seas Jewelry CompanyBudgeted Income StatementFor the Coming Year $Sales Less: Cost of goods sold Gross margin $fill in the blank e744f5f1dfcfffc_5 Less: $- Select - - Select - - Select - Operating income $fill in the blank e744f5f1dfcfffc_11 - Select - $- Select - Question Content Area 2. What if Coral Seas had interest payments of…arrow_forwardJack Jones, the materials manager at Precision Enterprises, is beginning to look for ways to reduce inventories. A recent accounting statement shows that the inventory investment for raw materials is $3,672,800, for work-in-process is $6,978,000, and for finished goods is $2,675,000. This year's cost of goods sold will be about $24,700,000. Assume that there are 52 business weeks per year. a. Express total inventory as weeks of supply. The weeks of supply is 28.05 weeks. (Enter your response rounded to one decimal place.) b. Express total inventory as inventory turns. The inventory turnover is turns per year. (Enter your response rounded to one decimal place.)arrow_forwardWe are preparing a Departmental Income Statement. We must allocate indirect expenses between Sales Dept. 1 and Sales Dept. 2. For this month, Insurance expenses = $50,000. They are allocated on the basis of square footage. Sales Dept. 1 occupies 10,000 square feet; Sales Dept. 2 occupies 18,000 square feet. How much insurance expense will be allocated to Sales Dept. 2? *Round to dollars.arrow_forward
- Aston Corporation performs year-end planning in November of each year before its calendar year ends in December. The preliminary estimated net income is $4,800,000. The CFO, Rita Warren, meets with the company president, J. B. Aston, to review the projected numbers. She presents the following projected information. Aston Corporation Projected Income Statement For the Year Ended December 31, 2020 Sales $28,995,000 Interest revenue 5,000 Cost of goods sold $14,000,000 Depreciation 2,600,000 Operating expenses 6,400,000 23,000,000 Income before income tax 6,000,000 Income tax 1,200,000 Net income $ 4,800,000 Aston Corporation Selected Balance Sheet Information At December 31, 2020 Estimated cash balance $ 5,000,000 Available-for-sale debt investments (at cost) 10,000,000 Fair value adjustment (1/1/20) —0— Estimated fair value at December 31, 2020: Security Cost…arrow_forwardThe president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: January 1,200 May February March April 1,500 June 2,100 2,300 1,600 1,900 July August 1,700 1,300 Her operations manager is considering a new plan, which begins in January with 200 units of inventory on hand. Stockout cost of lost sales is $100 per unit. Inventory holding cost is $20 per unit per month. Ignore any idle-time costs. The plan is called plan C. Plan C: Keep a stable workforce by maintaining a constant production rate equal to the average gross requirements excluding initial inventory and allow varying inventory levels. Conduct your analysis for January through August. The average monthly demand requirement = 1700 units. (Enter your response as a whole number.) In order to arrive at the costs, first compute the ending inventory and stockout units for each month by filling in the table below (enter your responses as whole numbers). Ending Period…arrow_forwardThe president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: January 1,200 May February 1,500 June 2,100 2,300 March April 1,600 1,900 July August 1,700 1,300 Her operations manager is considering a new plan, which begins in January with 200 units of inventory on hand. Stockout cost of lost sales is $100 per unit. Inventory holding cost is $20 per unit per month. Ignore any idle-time costs. The plan is called plan C. Plan C: Keep a stable workforce by maintaining a constant production rate equal to the average gross requirements excluding initial inventory and allow varying inventory levels. Conduct your analysis for January through August. The average monthly demand requirement = ☐ units. (Enter your response as a whole number.)arrow_forward
- Bramble & Carla Vista Fabricators produces commemorative bricks that organizations use for fundraising projects. Joseph Bramble, the company's vice president of marketing, has prepared the following sales forecast for the first six months of the coming year. The company plans to sell the bricks for $24 each. January February March April May June 25,000 28,000 32,000 34,000 26,000 35,000 Bramble & Hill Fabricators' marketing department has identified the following monthly expenses that will be needed to support the company's sales and administrative functions. Depreciation $14,000 Sales staff salaries $26,000 Advertising $2,400 Executive salaries $35,000 Miscellaneous $1,900 In addition to these monthly expenses, the company will pay a commission to its salespeople equal to 8% of the sales revenue from each brick sold. The company expects bad debt expense to be 2% of sales…arrow_forwardTabouk’s Manufacturing Company has two divisions: Garden Division and Farm Division. The following report is for the most recent operating period of 2019: Total Company Garden Division Farm Division Sales revenue $390,000 $270,000 $120,000 Variable expenses 95,400 59,400 36,000 Contribution margin 294,600 210,600 84,000 Traceable fixed expenses 223,000 165,000 58,000 Division profit margin 71,600 $45,600 $26,000 Common fixed expense 46,800 Net operating income $24,800 As a manager at the company your responsibilities are planning and directing the company, you are required to: 1-What would be the company's overall net operating income if the company operated at its two division's break-even points?arrow_forwardHelen Bowers, owner of Helen's Fashion Designs, is planning torequest a line of credit from her bank. She has estimated the following sales forecasts for the firm for parts of 2015 and 2016: Estimates regarding payments obtained from the credit department are as follows: collected within the month of sale, 10%; collected the month following the sale, 75%; collected the second ‘month following the sale, 15%. Payments for labor and raw materials are made the month after these services were provided. Here are the estimated costs of labor plus raw materials: General and administrative salaries are approximately $27,000 a month. Lease payments under long-term leases are $9,000 a month. Depreciafion charges are $36,000 a month. Miscellaneous expenses are $2,700 a month. Income tax payments of 563,000 are due in September and December. A progress payment of $180,000 on a new design studio must be paid in October. Cash on hand on July 1 will be $132,000, and a minimum cash balance of 590,000…arrow_forward
- D’Lightful Lamp Company manufactures lamps. The estimated number of lamp sales for the last three months of the year are as follows: Month Sales October 10,000 November 14,000 December 13,000 Finished goods inventoryat the end of September was 3,000 units. Ending finished goods inventory is budgeted to equal 25 percent of the next month's sales. The company expects to sell the lamps for $25 each. January 2018 sales is projectedat 16,000 lamps. What is the expected revenue for the three months from October to December? Question 17 options: 1) $250,000 2) $925,000 3) $325,000 4) $343,750arrow_forwardCaldwell Supply, a wholesaler, has determined that its operations have three primary activities: purchasing, warehousing, and distributing. The firm reports the following operating data for the year just completed: Caldwell buys 100,900 units at an average unit cost of $19 and sells them at an average unit price of $29. The firm also has fixed operating costs of $250,900 for the year. Caldwell's customers are demanding a 19% discount for the coming year. The company expects to sell the same amount if the demand for price reduction can be met. Caldwell's suppliers, however, are willing to give only a 14% discount. Required: Caldwell has estimated that it can reduce the number of purchase orders to 770 and can decrease the cost of shipment by $12 with minor changes in its operations. Any further cost savings must come from reengineering the warehousing processes. What is the maximum cost (i.e., target cost) for warehousing if the firm desires to earn the same amount of profit next year?arrow_forwardA company is launching a new sales initiative and expects sales of $446,838 during the first year, and the gross profit margin to be 25%. To prepare for this, they plan to acquire 49 days worth of inventory. Their vendor will allow 48 days to pay its invoices. The company plans to sell only on account to its customers, so sales will be entirely credit based, and the average invoice is expected to take 44 days to collect. What amount of net working capital should be included in the initial investment? Enter your answer as a monetary amount rounded to four decimal places, but without the currency symbol. For example, if your answer is $90.1234, enter 90.1234 Type your answer...arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
HR Basics: Compensation; Author: HR Basics: Compensation;https://www.youtube.com/watch?v=wZoRId6ADuo;License: Standard Youtube License