Question
In: Accounting
North West Paper Inc. (North West) provides cardboard, paper, and plastic packaging materials to a large...
North West Paper Inc. (North West) provides cardboard, paper, and plastic packaging materials to a large number of manufacturers and distributors in all states. The cardboard and paper division is a well-established business, but North West has been providing plastic products only since its takeover of Plastic Products Inc. 18 months ago. The takeover doubled North West’s revenue and caused changes in its management structure, adding another two divisional managers. These new divisional managers are in charge of plastic product sales to different areas of the country, Plastic (Eastern) and Plastic (Western), and they join the Paper (Eastern) and Paper (Western) division managers in reporting directly to the CEO. All internal operating reports are now structured along the four divisional reporting lines, although external financial statements continue to be produced for the whole business. All purchasing and billing systems are fully integrated, although it is possible to extract data along divisional lines, and by state (as before). North West purchases bulk supplies of raw plastic and paper and makes boxes, rolls, and sheets of these materials to fill customer orders. Production processes in the paper divisions have not changed, and North West has made minimal changes to the production processes used by Plastic Products Inc.Identify the inherent risks at the financial statement level caused by the takeover of Plastic Products Inc. What procedures could the auditors take to respond to risk at the financial statement level?
Solutions
ekkarill92 answered 1 year agoRelated Solutions
North West Paper Inc. (North West) provides cardboard, paper, and plastic packaging materials to a large...
North West Paper Inc. (North West) provides cardboard, paper,
and plastic packaging materials to a large number of manufacturers
and distributors in all states. The cardboard and paper division is
a well-established business, but North West has been providing
plastic products only since its takeover of Plastic Products Inc.
18 months ago. The takeover doubled North West’s revenue and caused
changes in its management structure, adding another two divisional
managers. These new divisional managers are in charge of plastic
product...
Yazoo Hills, Inc. is a boutique cardboard box manufacturing company and has paper stock inventory of...
Yazoo Hills, Inc. is a boutique cardboard box manufacturing
company and has paper stock inventory of $400,000. Yazoo has this
entire inventory stored in one warehouse. There is a 2% chance that
a fire could occur. If this fire occurs, then Yazoo will lose their
entire inventory. [Option A]
As an alternative to keeping their entire inventory in one
warehouse, Yazoo is considering separating their inventory evenly
into two different warehouses. Once again, there is a 2% chance
that a...
1) With static materials, What happens when you bring each charged plastic strip near the paper...
1) With static materials, What happens when you bring each
charged plastic strip near the paper pieces? Why does this
happen?
2)Draw a free body diagram of the forces acting on the piece of
paper.
Manufacturing Inc. manufactures plastic thing-a-majigs. Materials are added at the beginning of the production process and...
Manufacturing Inc.
manufactures plastic thing-a-majigs. Materials are added at the
beginning
of the production process and
conversion costs are incurred uniformly. Production and cost
data for the month of June,
2016 are as follows.
Production data
Units
Percent Complete
Work in process units, June 1
2,425
57%
Units started into production
6,225
Work in process units, June 30
2,960
41%
Cost data
Work in process, June 1
Materials
$7,550
Coversion costs
5,800
$13,350
Direct materials
24,300
Direct labor...
Manufacturing Inc. manufactures plastic thing-a-majigs. Materials are added at the beginning of the production process and...
Manufacturing Inc.
manufactures plastic thing-a-majigs. Materials are added at the
beginning
of the production process and
conversion costs are incurred uniformly. Production and cost
data for the month of June,
2016 are as follows.
Production data
Units
Percent Complete
Work in process units, June 1
2,425
61%
Units started into production
6,190
Work in process units, June 30
2,950
41%
Cost data
Work in process, June 1
Materials
$7,250
Coversion costs
5,950
$13,200
Direct materials
24,200
Direct labor...
STAR Co. provides paper to smaller companies whose volumes are not large enough to warrant dealing...
STAR Co. provides
paper to smaller companies whose volumes are not large enough to
warrant dealing directly with the paper mill. STAR receives
100-feet-wide paper rolls from the mill and cuts the rolls into
smaller rolls of widths 12, 15, and 30 feet. The demands for these
widths vary from week to week. The following cutting patterns have
been established:
Number
of:
Pattern
12ft.
15ft.
30ft.
Trim Loss
1
5
0
1
10 ft.
2
0
0
3
10 ft....
STAR Co. provides paper to smaller companies whose volumes are not large enough to warrant dealing...
STAR Co. provides paper to smaller companies whose volumes are
not large enough to warrant dealing directly with the paper mill.
STAR receives 100-feet-wide paper rolls from the mill and cuts the
rolls into smaller rolls of widths 12, 15, and 30 feet. The demands
for these widths vary from week to week. The following cutting
patterns have been established:
Number
of:
Pattern
12ft.
15ft.
30ft.
Trim Loss
1
0
6
0
10 ft.
2
0
0
3
10 ft....
The Apple, Inc. sales manager for the Chicago West Suburban region is disturbed about the large...
The Apple, Inc. sales manager for the Chicago West Suburban region
is disturbed about the large number of complaints her office is
receiving about defective ipods. New Apple CEO Tim Cook is also
very displeased and wants the situation remedied as soon as
possible.
The sales manager examines this Excel file ipod Weekly
Complaints, which shows the number of complaints concerning
defective ipods received by her office for each of the immediately
preceding 52 weeks.
Question 1. Make a histogram...
Anu Ghai was a new production analyst at RHI, Inc., a large furniture factory in North...
Anu Ghai was a new production analyst at RHI, Inc., a large
furniture factory in North Carolina. One of her first jobs was to
update the predetermined overhead allocation rates for factory
production costs. This was normally done once a year, by analyzing
the previous year's actual data, factoring in projected changes,
and calculating a new rate for the coming year. What Anu found was
strange. The activity rate for "maintenance" had more than doubled
in one year, and she...
Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials,...
Mackinaw Inc. processes a base chemical into plastic. Standard
costs and actual costs for direct materials, direct labor, and
factory overhead incurred for the manufacture of 5,600 units of
product were as follows:
Standard Costs
Actual Costs
Direct materials
7,300 lb. at $5.40
7,200 lb. at $5.30
Direct labor
1,400 hrs. at $18.30
1,430 hrs. at $18.70
Factory overhead
Rates per direct labor hr.,
based on 100% of normal
capacity of 1,460 direct
labor hrs.:
Variable cost, $3.00
$4,160 variable...
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