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16. Tombro Industries is in the process of automating one
Tombro Industries is in the process of automating one of its plants and developing a flexible manufacturing system. The company is finding it necessary to make many changes in operating procedures. Progress has been slow, particularly in trying to develop new performance measures for the factory.
In an effort to evaluate performance and determine where improvements can be made, management has gathered the following data relating to activities over the last four months:
The president has read in industry journals that throughput time, MCE, and delivery cycle time are important measures of performance, but no one is sure how they are computed. You have been asked to assist the company, and you have gathered the following data relating to these measures:
Required:
1 For each month, compute the following performance measures:
(a) Throughput time.
(b) MCE.
(c) Delivery cycle time.
2. Using the performance measures given in the main body of the problem and the performance measures computed in (1) above, do the following:
(a) Identify areas where the company seems to be improving.
(b)Identify areas where the company seems to be deteriorating.
3. Refer to the inspection time, process time, and so forth, given for month 4.
(a) Assume that in month 5 the inspection time, process time, and so forth, are the same as for month 4, except that the company is able to completely eliminate the queue time during production using Lean Production. Compute the new throughput time and MCE.
(b) Assume that in month 6 the inspection time, process time, and so forth, are the same as in month 4, except that the company is able to eliminate both the queue time during production and the inspection time using Lean Production. Compute the new throughput time andMCE.
17. Gammaro Company uses normal costing. It allocates manufacturing
Gammaro Company uses normal costing. It allocates manufacturing overhead costs using a budgeted rate per machine-hour. The following data are available for 2011:
Budgeted manufacturing overhead costs $4,200,000
Budgeted machine-hours 175,000
Actual manufacturing overhead costs $4,050,000
Actual machine-hours 170,000
1. Calculate the budgeted manufacturing overhead rate.
2. Calculate the manufacturing overhead allocated during 2011.
3. Calculate the amount of under- or overallocated manufacturing overhead.
18. 1. The accounting equation can be stated as:
1. The accounting equation can be stated as:
a. Assets = Liabilities - Owner's Equity
b. Assets - Liabilities = Owner's Equity
c. Liabilities = Assets + Owner's Equity
d. Owner's Equity = Assets + Liabilities
2. Receiving cash from a customer in payment of an account receivable would:
a. decrease total assets and increase owner's equity
b. increase owner's equity and increase liabilities
c. increase total assets and decrease liabilities
d. have no effect on total assets or owner's equity
3. Borrowing money and signing a note payable would:
a. increase total assets and increase liabilities
b. decrease liabilities and increase total assets
c. increase liabilities and increase owner's equity
d. increase total assets and increase owner's equity
4. The financial statement that presents a summary of the revenues and expenses of an entity is called the:
a. statement of owner's equity
b. statement of financial position
c. income statement
d. balance sheet
19. What is the importance of the job ticket? Illustrate the flow of this document and its information...
1. What is the importance of the job ticket? Illustrate the flow of this document and its information from inception to impact on the financial statements.
2. Are any time lags in recording economic events typically experienced in payroll systems? If so, what are they? Discuss the accounting profession’s view on this matter as it pertains to financial reporting.
3. What advantages are achieved in choosing a basic batch computer system over a manual system?
What advantages are achieved in choosing a batch system with real-time data input over a basic batch system?
20. Selected transactions from the journal of Kati Tillman, investment broker, are presented below Da...
Selected transactions from the journal of Kati Tillman, investment broker, are presented below Date Account Titles and Explanation Ref. Debit Credit Aug. 1 Cash 47,100 Common Stock 47,100 (Investment of cash for stock) 10 Cash 21,195 21,195 Service Revenue (Received cash for services performed 39,250 12 Equipment 6,280 Cash 32,970 Notes Payable (Purchased office equipment for cash and notes payable) 25 Account Receivable 12,560 Service Revenue 12,560 (Billed clients for services performed) 6,908 31 Cash Accounts Receivable 6,908 (Receipt of cash on account)
21. Value 2.24 points The following information is from the materials requistions and time tickets fo...
value 2.24 points The following information is from the materials requistions and time tickets for Job 9-1005 completed by Great Bay Boats. The requisitions are identfied by code numbers starting with the letter Q and the time tickets start with W At the start of the year, management estimated that overhead cost would equal 110% of direct labor cost for each job 7/1/2013 Q-4698 $1.250 7/1/2013 W-3393 600 7/5/2013 -4725 1000 7/5/2013 W-3479 7/10/2013 W-3559 450 300 Determine the total cost on the job cost sheet for Job 9-1005 JOB COST SHEET Direct Materials Amount Time-Ticket No. Amount Date 07/01/2013 07/05/2013 07/10/2013 No. lied S 600 450 Q-4698 S 1250W-3393 1,000 W-3479 S 2.250 S 1,050 References eBook & Resources
22. 36) All of the following are included in the journal entry for a transaction except : A) the name of
36) All of the following are included in the journal entry for a transaction except:
A) the name of the person making the entry
B) the titles of the accounts to be debited and credited
C) the date of the transaction
D) the dollar amounts of the debit and credit
37) A business purchases equipment for cash of $100,000. This transaction will cause:
A) cash to be credited for $100,000
B) equipment to be credited for $100,000
C) capital to be credited for $100,000
D) capital to be debited for $100,000
38) A business acquires equipment costing $10,000 by making a $2,000 down payment and issuing a note for the balance. This transaction will cause:
A) equipment to be debited for $10,000
B) notes payable to be debited for $8,000
C) cash to be credited for $8,000
D) equipment to be credited for $8,000
39) A payment of $400 to a creditor, on account, will cause:
A) cash to be debited for $400
B) accounts receivable to be credited for $400
C) accounts payable to be debited for $400
D) accounts payable to be credited for $400
40) Providing services for $2,000 where cash is immediately received, will cause:
A) service revenue to be debited for $2,000
B) service revenue to be credited for $2,000
C) cash to be credited for $2,000
D) accounts receivable to be credited for $2,000
41) Incurring an expense in the current accounting period, which is paid in the current accounting period, will require:
A) a debit to an expense and a credit to a liability
B) a debit to a liability and a credit to an expense
C) a debit to an expense and a credit to cash
D) a debit to an expense and a credit to capital
42) Incurring an expense in the current accounting period, which will be paid in the following accounting period, will require:
A) a debit to an expense and a credit to a liability
B) a debit to a liability and a credit to an expense
C) a debit to an expense and a credit to cash
D) a debit to an expense and a credit to capital
43) The withdrawal of cash by the owner for personal use would include a:
A) debit to the owner's capital account
B) credit to the owner's withdrawals account
C) credit to the owner's capital account
D) debit to the owner's withdrawals account
44) An owner investment of cash into the business would include a:
A) debit to capital
B) credit to withdrawals
C) debit to withdrawals
D) credit to capital
45) Purchasing a truck by signing a note payable would include a:
A) credit to truck
B) debit to note payable
C) credit to note payable
D) debit to truck expense
23. The auditor has always received good cooperation from a particular client and has no reason to
The auditor has always received good cooperation from a particular client and has no reason to question management’s integ- rity. The controller has requested that the auditor inform her about which warehouse locations that the auditor will visit during the upcoming inventory count. In addition, the controller has requested copies of the auditor’s observations on the physical inventory because she wants to make sure that a good inventory was taken. Should the auditor comply with these requests? State your ratio- nale, including a discussion of professional skepticism.
24. 172. Duffy Corporation has prepared the following sales budget: Month Cash Sales Credit Sales May...
172. Duffy
Corporation has prepared the following sales budget:
Month Cash Sales Credit Sales
May $16,000 $68,000
June 20,000 80,000
July 18,000 74,000
August 24,000 92,000
September 22,000 76,000
Collections
are 40% in the month of sale, 45% in the month following the sale, and 10% two
months following the sale. The remaining 5% is expected to be uncollectible.
Required:
Prepare
a schedule of cash collections for July through September.
173. The following information pertains to Amigo
Corporation:
Month Sales Purchases
July $30,000 $10,000
August 34,000 12,000
September 38,000 14,000
October 42,000 16,000
November 48,000 18,000
December 60,000 20,000
· Cash is collected from customers in the following manner:
Month of sale (2% cash discount) 30%
Month following sale 50%
Two months following sale 15%
Amount uncollectible 5%
· 40% of purchases are paid for in cash in the month of purchase,
and the balance is paid the following month.
Required:
a. Prepare a summary of cash collections for the
4th quarter.
b. Prepare a summary of cash disbursements for
the 4th quarter.
CRITICAL
THINKING
174. Describe the benefits to an organization of
preparing an operating budget.
175. Bob
and Dale have just purchased a small honey manufacturing company that was
having financial difficulties. After a
brief operating period, they decided that the company’s main problem was lack
of any financial planning. The company
made a good product and market potential was great.
Required:
Explain
why a company needs a good budgeting plan.
Specifically address the need for a master budget.
176. Describe operating and financial budgets and
give at least two examples of each discussed in the textbook.
177. Discuss the importance of the sales forecast
and items that influence its accuracy.
178. Distinguish
between controllable and uncontrollable aspects of revenue and costs. Can a manager totally control all revenue and
costs? Why or why not?
179. Describe some of the drawbacks of using the
operating budget as a control device.
180. What is budget slack? What are the pros and cons of building slack
into the budget from the point of view of (a) an employee and (b) a senior
manager?
25. Enter the letter for each term in the blank space beside the definition that it most closely...
Enter the letter for each term in the blank space beside the definition that it most closely matches.
A. Cash discount
B. Credit period
C. Discount period
D. FOB destination
E. FOB shipping point
F. Gross profit
G. Merchandise inventory
H. Purchase discount
I. Sales discount
J. Trade discount
1. Ownership of goods is transferred when delivered to the buyer’s place of business.
2. Time period in which a cash discount is available.
3. Difference between net sales and the cost of goods sold.
4. Reduction in a receivable or payable if it is paid within the discount period.
5. Purchaser’s description of a cash discount received from a supplier of goods.
6. Ownership of goods is transferred when the seller delivers goods to the carrier.
7. Reduction below list or catalog price that is negotiated in setting the price of goods.
8. Seller’s description of a cash discount granted to buyers in return for early payment.
9. Time period that can pass before a customer’s payment is due.
10. Goods a company owns and expects to sell to its customers.