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36. Dawson Toys, Ltd., produces a toy called the Maze. TheDawson Toys, Ltd., produces a toy called the Maze. The company has recently established a standard cost system to help control costs and has established the following standards for the Maze toy:
Direct materials: 6 microns per toy at $0.50 per micron
Direct labor: 1.3 hours per toy at $8 per hour
During July, the company produced 3,000 Maze toys. Production data for the month on the toy follow:
Direct materials:
25,000 microns were purchased at a cost of $0.48 per micron. 5,000 of these microns were still in inventory at the end of the month.
Direct labor:
4,000 direct labor-hours were worked at a cost of $36,000.
Required:
1. Compute the following variances for July:
(a) Direct materials price and quantity variances.
(a) Direct labor rate and efficiency variances.
2. Prepare a brief explanation of the possible causes of each variance.
37. Describe briefly key measures that you would include in Stanmore’s balanced scorecard and the...
Strategy, balanced scorecard. Stanmore Corporation makes a special-purpose machine, D4H, used in the textile industry. Stanmore has designed the D4H machine for 2011 to be distinct from its competitors. It has been generally regarded as a superior machine. Stanmore presents the following data for 2010 and 2011.
2010 2011
Units of D4H produced and sold 200 210
Selling price $40,000 $42,000
Direct materials (kilograms) 300,000 310,000
Direct material cost per kilogram $8 $8.50
Manufacturing capacity in units of D4H 250 250
Total conversion costs $2,000,000 $2,025,000
Conversion cost per unit of capacity (row 6 ÷ row 5) $8,000 $8,100
Selling and customer-service capacity 100 customers 95 customers
Total selling and customer-service costs $1,000,000 $940,500
Selling and customer-service capacity cost per customer(row 9 ÷ row 8) $10,000 $9,900
Stanmore produces no defective machines, but it wants to reduce direct materials usage per D4H machine in 2011. Conversion costs in each year depend on production capacity defined in terms of D4H units that can be produced, not the actual units produced. Selling and customer-service costs depend on the number of customers that Stanmore can support, not the actual number of customers it serves. Stanmore has 75 customers in 2010 and 80 customers in 2011.
1. Is Stanmore’s strategy one of product differentiation or cost leadership? Explain briefly. Required
2. Describe briefly key measures that you would include in Stanmore’s balanced scorecard and the reasons for doing so.
38. On October 29, 2012, Lobo Co. began operations by purchasing razors for resale. Lobo uses the...
On October 29, 2012, Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual inventory method. The razors have a 90-day warranty that requires the company to replace any nonworking razor. When a razor is returned, the company discards it and mails a new one from Merchandise Inventory to the customer. The company’s cost per new razor is $20 and its retail selling price is $75 in both 2012 and 2013. The manufacturer has advised the company to expect warranty costs to equal 8% of dollar sales. The following transactions and events occurred.
2012
Nov. 11 Sold 105 razors for $7,875 cash.
30 Recognized warranty expense related to November sales with an adjusting entry.
Dec. 9 Replaced 15 razors that were returned under the warranty.
16 Sold 220 razors for $16,500 cash.
29 Replaced 30 razors that were returned under the warranty.
31 Recognized warranty expense related to December sales with an adjusting entry.
2013
Jan. 5 Sold 150 razors for $11,250 cash.
17 Replaced 50 razors that were returned under the warranty.
31 Recognized warranty expense related to January sales with an adjusting entry.
39. In comparing the current ratios of two companies, why is it invalid to assume that the company with.
In comparing the current ratios of two companies, why is it invalid to assume that the company with the higher current ratio is the better company?
a. The two companies may be different sizes.
b. A high current ratio may indicate inadequate inventory on hand.
c. The two companies may define working capital in different terms.
d. A high current ratio may indicate inefficient use of various assets and liabilities.
could you explain this question
40. Case 3: Statement of Financial position The following trial balance of Shaw C adjusted except of inc
adjusted except of income tax expense: ance of Shaw Company at December 31, 2017 has been 675,000 2,695,000/ 2,185,000 10,245,000 Cash Accounts receivable (net) Inventory Property, plant and equipment (net) Accounts payable and accrued liabilities Income tax payable Deferred tax payable - Common stock Additional paid-in capital Retained earnings, 1/1 Net sales and other revenue Cost and expenses Income tax expense 1,800,000 1.750,000 - 750,000 - 2,500,000 3.000.000 3,350,000 15,000,000 10,000,000 2.350,000 28,150,000 $ 28,150,000 Included in the accounts receivable is $1,000,000 due from a customer and payable in quarterly installments of $125.000. The last payment is due December 30, 2019. The balance in the deferred tax liability accounts pertains to a temporary difference that arose in a prior year, of which $150,000 is expected to reverse in 2018. During the year, estimated tax payment of $600,000 was charged to income tax expense. The x rate is 35% on all types of income. Required: (show computation is good form (30 minutes) In Shaw Company's December 31, 2017 balance sheet how much is: 1. The total current asset? a b. $ $ 6,030,000 5,555,000 c. $ d. $ 5,530,000 5,055,000 2. The total current liabilities? a b. $ $ 2,950,000 3,550,000 c. $ d. $ 4,300,000 7,300,000 The final retained earnings balance? a b. $ $ 8,350,000 3,350,000 C. $ d. $ 6,600,000 6,150,000
41. 1) 2) Randy Inc. produces and sells tablets. The company incurred the following costs for the May. A
incurred the following costs for the May. Advertising cost for monthly television ads Attachable keyboard Insurance for delivery truck Factory supervisor’s salary Marketing manager’s salary Assembly worker wages Miscellaneous soldering material used to seal case Hourly wages for factory security guard CEO’s salary Speakers $ 4,600 18,600 460 3,250 2,950 18,000 750 1,900 6,800 4,900 Required: Determine each of the following: 1. Direct material Direct labor 3. Manufacturing overhead 4. Total manufacturing cost 5. Total period cost 6. Total variable cost 7. Total fixed cost Depreciation on factory equipment Depreciation on delivery trucks Wood used to build bookcases Production supervisor’s salary Glue and screws used in the bookcases Wages of persons who assemble the bookcases Cost to run an ad on local radio stations Rent for the factory CEO’s salary Wages of person who sands the wood after it is cut $ 1,800 800 1,500 2,800 250 2,500 600 3,500 3,000 1,600 Required: Determine each of the following costs for Top Shelf. Direct Materials Used Direct Labor 2. 3 Manufacturing Overhead 5. Prime Cost Conversion Cost Total Manufacturing Cost Total Nonmanufacturing (period) Cost
42. Problem 5-3A Perpetual: Alternative cost flows LO P1 Montoure Company uses a perpetual inventory sys
Problem 5-3A Perpetual: Alternative cost flows LO P1 Montoure Company uses a perpetual inventory system. It entered into the following calendar-year purchases and sales transactions Activities 1 Beginning inventory Units Acquired at Cost 630 units $50 per unit 370 units $46 per unit 100 units 8 $34 per unit Units Sold at Retail Date Jan. Feb. 10 Purchase Mar, 13 Purchase Mar 15 Sales Aug. 21 Purchase 740 units e $75 per unit 160 units $55 per unit 520 unitse $51 per unit Sept. 5 Purchase Sept. 10 Sales 680 units $75 per unit 1,780 units 1,420 units Totals Required: 1. Compute cost of goods available for sale and the number of units available for sale. Cost of goods available for sale units Number of units available for sale 2. Compute the number of units in ending inventory. Ending inventory units 3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c weighted average, and (d) specific identification. For specific identification, units sold consist of 630 units from beginning inventory, 270 from the February 10 purchase, 100 from the March 13 purchase, 110 from the August 21 purchase, and 310 from the September 5 purchase. (Round your average cost per unit to 2 decimal places.) Complete this question by entering your answers in the tabs below. Perpetual Perpetual FIFO Weighted Average Specific Id LIFO Compute the cost assigned to ending inventory using FIFO. (Round your average cost per unit to 2 decimal places.) Perpetual FIFO Inventory Balance Goods Purchased Cost of Goods Sold # of units Cost # of units sold Cost per unit Cost of Goods Sold Cost Inventory Balance Date #of units per unit $50.00 per unit 630 Jan 1 $31,500.00 Feb 10 Mar 13 Mar 15 Aug 21 Sept 5 Sept 10 $ Totals 0.00 0.00 Perpetual LIFO Perpetual FIFO 4. Compute gross profit earned by the company for each of the four costing methods. (Round your average cost per unit to 2 decimal places.) Specific Identification Weighted Average FIFO LIFO Sales Less: Cost of goods sold Gross profit
43. The Cecil-Booker Vending Company changed its method of valuing inventory from the average cost metho
The Cecil-Booker Vending Company changed its method of valuing inventory from the average cost method to the FIFO cost method at the beginning of 2013. At December 31, 2012, inventories were $119,000 (average cost basis) and were $123,000 a year earlier. Cecil-BookerA????1s accountants determined that the inventories would have totaled $153,000 at December 31, 2012, and $158,000 at December 31, 2011, if determined on a FIFO basis. A tax rate of 40% is in effect for all years.
One hundred thousand common shares were outstanding each year. Income from continuing operations was $390,000 in 2012 and $515,000 in 2013. There were no extraordinary items either year.
Required:
1. Prepare the journal entry to record the change in accounting principle. (If no entry is required for a particular event, select "No journal entry required" in the first account field.)
2. Prepare the 2013A????12012 comparative income statements beginning with income from continuing operations. Include per share amounts. (Round EPS answers to 2 decimal places.)
rev: 08_08_2013_QC_33582
check my workreferencesebook & resources
A????12015 McGraw-Hill Education. All rights reserved.
44. Min Co. is a publicly held company whose shares are
Min Co. is a publicly held company whose shares are traded in the over-the-counter market. The stockholders’ equity accounts at December 31, 2006 had the following balances:
Preferred stock, $100 par value, 6% cumulative; 5,000 shares authorized; 2,000 issued and outstanding ………………………………………………..… $ 200,000
Common stock, $1 par value, 150,000 shares authorized;
100,000 issued and outstanding ……………………………. 100,000
Additional paid-in capital ……………………………………… 800,000
Retained earnings ……………………………………………. 1,586,000
Total Stockholders’ Equity …………………………………. $2,686,000
Transactions during 2007 and other information relating to the stockholders’ equity accounts were as follows:
?c February 2, 2007—Issued 13,000 shares of common stock to Ram Co. in exchange for land. On the date issued, the stock had a market price of $11 per share. The land had a carrying value on Ram’s books of $135,000, and an assessed value for property taxes of $90,000.
?c March 2, 2007—Purchased 5,000 shares of its own common stock to be held as treasury stock for $14 per share. Min uses the cost method to account for treasury stock. Transactions in treasury stock are legal in Min’s state of incorporation.
?c May 11, 2007—Declared a property dividend of marketable securities held by Min to common shareholders. The securities had a carrying value of $600,000; fair value on relevant dates were:
Date of declaration (May 11, 2007) ……………… $720,000
Date of record (May 28, 2007) ……………………. 758,000
Date of distribution (June 4, 2007) ………………… 736,000
?c October 1, 2007—Reissued 2,000 shares of treasury stock for $16 per share.
?c November 2, 2007—Declared a cash dividend of $1.50 per share to all common shareholders of record November 16, 2007. The dividend was paid on November 26, 2007.
?c December 21, 2007—Declared the required annual cash dividend on preferred stock for 2007. The dividend was paid on January 4, 2008.
?c January 14, 2008—Before closing the accounting records for 2007, Min became aware that no amortization had been recorded for 2006 for a patent purchased on July 1, 2006. The patent was properly capitalized at $320,000 and had an estimated useful life of eight years when purchased. Min’s income tax rate is 30%. The appropriate correcting entry was recorded on the same day.
?c Adjusted net income for 2007 was $838,000.
Required
Determine the amounts of each of the following items. Show supporting calculations.
1. Prior period adjustment
2. Preferred dividends
3. Common dividends—cash
4. Common dividends—property
5. Number of common shares issued at December 31, 2007
6. Total legal capital of common stock issued
7. Additional paid-in capital, including treasury stock transactions
8. Total dollar amount of treasury stock
9. Numerator used in calculation of 2007 earnings per share for the year
45. The steps of the accounting cycle are presented below. Identify the correct order of the steps. ...
The steps of the accounting cycle are presented below. Identify the correct order of the steps. a. Journalize and post the closing entries. b. Start with beginning account balances. c. Prepare the financial statements. d. Compute the unadjusted balance in each account, and prepare the unadjusted trial balance. e. Journalize and post adjusting entries. f. Enter the unadjusted trial balance on the worksheet, and complete the worksheet (optional). g. Prepare the adjusted trial balance. h. Analyze and journalize transactions as they occur. i. Post journal entries to the accounts. j. Prepare the post-closing trial balance.
46. The two blocks shown are originally at rest. Neglecting the masses of the pulleys and the effect...
The two blocks shown are originally at rest. Neglecting the masses of the pulleys and the effect of friction in the pulleys and between block A and the horizontal surface, determine (a) the acceleration of each block, (b) the tension in the cable.
47. COST ASSIGNMENT METHODS Brody Company makes industrial cleaning solvents. Various chemicals,...
COST ASSIGNMENT METHODS
Brody Company makes industrial cleaning solvents. Various chemicals, detergent, and
water are mixed together and then bottled in 40-litre drums. Brody provided the following
information for last year:
Last year, Brody completed 100,000 units. Sales revenue equalled $1,200,000, and Brody paid a sales commission of 5 percent of sales.
Required:
1. Calculate the direct materials used in production for last year.
2. Calculate total prime cost.
3. Calculate total conversion cost.
4. Prepare a cost of goods manufactured statement for last year. Calculate the unit product cost.
5. Prepare a cost of goods sold statement for last year.
6. Prepare an income statement for last year. Show the percentage of sales that each line item represents.
48. Spirit Company produces baseball caps. The company incurred the
Spirit Company produces baseball caps. The company incurred the following costs to produce 12,000 caps last month:
Cardboard for the brims ………………..$4,800
Cloth ……………………………………12,000
Plastic for headbands ………………….. 6,000
Straight-line depreciation ………………. 7,200
Supervisors’ salaries ……………………19,200
Utilities ………………………………… 3,600
Total ……………………………………. $52,800
a. What did each cap component cost on a per-unit basis?
b. What is the probable type of behavior that each of the costs exhibits?
c. The company expects to produce 10,000 caps this month. Would you expect each type of cost to increase or decrease? Why? Can the total cost of 10,000 caps be determined? Explain.
49. Explain to Jessica the four purposes of internal control and give her one application of each...
Jessica Mahan is the new owner of Penny Parking. She has heard about internal control but is not clear about its importance for her business. Explain to Jessica the four purposes of internal control and give her one application of each purpose for Penny Parking.
50. Gundy Company expects to produce 1,299,600 units of Product XX in 2017. Monthly production is exp...
Gundy Company expects to produce 1,299,600 units of Product XX in 2017. Monthly production is expected to range from 73,600 to 118,800 units. Budgeted variable manufacturing costs per unit are direct materials $3, direct labor $6, and overhead $9. Budgeted fixed manufacturing costs per unit for depreciation are $6 and for supervision are $2.
Prepare a flexible manufacturing budget for the relevant range value using 22,600 unit increments. (List variable costs before fixed costs.)
What’s in green is what is right and I have answered what’s in Gray is possibly right but what’s in red is all wrong and need help with Gray and Red. Thanks
GUNDY COMPANY Monthly Flexible Budget For the Year 2017 Activity Level Finished Units 736001 962001 1188001 Variable Costs Direct Materials 2208001 288600 356400 Direct Labor 4416001 577200 7128001 736000 865800 1069200 Total Variable Costs ? 14720001 173160? 2138400 Fixed Costs Depreciation 294400 577200 712800 u perVISIOn 147200 192400
