H&H is a tannery that supplies high quality exotic leather to major international fashion houses and customers globally. Tanning is the process of treating skins and hides of animals to produce leather. The three major steps in the production of leather are curing, beamhouse operations and tanning. Due to the increased demand and limited production space, H&H sourced pre-tanned leather (the supplier has already completed the curing and beamhouse operations processes), and raw and untreated skin (another separate supplier). The company has a production area of 7500 sq m.

The weekly demand for tanned leather is at least 22,000 sq ft. There is a supplier who provides H&H pre-tanned leather at three different grade: Grade A, B, and C. After purchasing the pre-tanned leather, H&H will then perform the last step in tanning the leather before shipping it to clients. H&H has a small section within the production facility that could perform curing and beamhouse operations on raw and untreated skin, up to 12,000 sq ft per week. It costs $15 per sq ft for H&H to perform the pre-tanned process while it could purchase up to 10,000 sq ft of grade A pre-tanned leather, 14,000 sq ft of grade B pre-tanned leather, 18,000 sq ft of grade C pre-tanned leather per week at $60 per sq ft, $53 per sq ft, and $46 per sq ft, respectively. It costs H&H $34 per sq ft to purchase raw and untreated skin.

The tanning process will result in shrinkage and the final yield depends on several factors such as the raw skin quality and pre-tanned process quality. 1 sq ft of Grade A pre-tanned leather will result in 0.95 sq ft of finished leather, while 1 sq ft of Grade B pre-tanned leather will result in 0.80 sq ft of finished leather and 1 sq ft of Grade C pre-tanned leather will result in 0.70 sq ft of finished leather. H&H in-house produced pre-tanned leather generally results in a yield of 0.75 sq ft of finished leather for every 1 sq ft of pre-tanned leather. The tanning equipment has the equivalent of 1200 production hours per week. For the tanning process, every sq ft of Grade A, B and C pre-tanned leather would require 1 minute, 2 minutes and 4 minutes, respectively. The in-house produced pre-tanned leather would require 5 minutes per sq ft for the tanning process.

(a) You are just hired as a purchasing officer at H&H. Develop an LP model to minimise the cost of leather purchasing, solve it with Microsoft Excel and make your recommendations, and show the Sensitivity Report. State assumptions you made in formulation if there are any.   

Answer the following questions by using the Microsoft Excel solution output you obtained for Question 1(a) and do not re-run your LP model in Excel for the following scenarios.   

(b) During the presentation to showcase your recommendation, a colleague raised a query on why the cost of running the tanning machines is not being taken into consideration? The management proposed that you re-run your analysis again noting the cost of running the tanning machines. What is your response to this demand?

(c) Your manager asked you if it makes sense to increase the capacity of the in-house capability in curing and beamhouse operations which currently stands at 12,000 sq ft per week. Interpret the solution output and develop your advice.

How double entry bookkeeping differs from earlier bookkeeping methods? (No copy paste please/300-400 words/also quote references)

LIFO Perpetual Inventory

The beginning inventory at Dunne Co. and data on purchases and sales for a three-month period are as follows:

Required:

1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 3, using the last-in, first-out method. Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Goods Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column.

2. Determine the total sales, the total cost of goods sold, and the gross profit from sales for the period.

3. Determine the ending inventory cost as of June 30.
$

Wolsey Industries Inc. expects to maintain the same inventories at the end of 20Y3 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: 1 Estimated Fixed Cost Estimated Variable Cost (per unit sold) 2 Production costs: 3 Direct materials — $66.00 4 Direct labor — 32.00 5 Factory overhead $190,000.00 20.00 6 Selling expenses: 7 Sales salaries and commissions 102,000.00 6.00 8 Advertising 37,000.00 — 9 Travel 10,000.00 — 10 Miscellaneous selling expense 7,800.00 1.00 11 Administrative expenses: 12 Office and officers’ salaries 138,400.00 — 13 Supplies 12,000.00 2.00 14 Miscellaneous administrative expense 14,000.00 1.00 15 Total $511,200.00 $128.00 It is expected that 21,300 units will be sold at a price of $160 a unit. Maximum sales within the relevant range are 25,900 units. Required: 1. Prepare an estimated income statement for 20Y3. Refer to the Labels and Amount Descriptions list provided for the exact wording of the answer choices for text entries. Enter all amounts as positive values. 2. What is the expected contribution margin ratio? 3. Determine the break-even sales in units and dollars. Round your answers to the nearest whole number. 4. Construct a cost-volume-profit chart on your own paper. What is the break-even sales? 5. What is the expected margin of safety in dollars and as a percentage of sales? Round your answers to the nearest whole number. 6. Determine the operating leverage. Round to one decimal place.

Exercise 8-2 Preparing flexible budgets LO P1

Tempo Company's fixed budget (based on sales of 12,000 units) for the first quarter of calendar year 2017 reveals the following.

Complete the following flexible budgets for sales volumes of 10,000, 12,000, and 14,000 units. (Round cost per unit to 2 decimal places.)

Lynch Company manufactures and sells a single product. The following costs were incurred during the company’s first year of operations: Variable costs per unit: Manufacturing: Direct materials $ 11 Direct labor $ 5 Variable manufacturing overhead $ 2 Variable selling and administrative $ 2 Fixed costs per year: Fixed manufacturing overhead $ 264,000 Fixed selling and administrative $ 174,000 During the year, the company produced 22,000 units and sold 18,000 units. The selling price of the company’s product is $45 per unit. Required: 1. Assume that the company uses absorption costing: a. Compute the unit product cost. b. Prepare an income statement for the year. 2. Assume that the company uses variable costing: a. Compute the unit product cost. b. Prepare an income statement for the year.

Equipment purchased January 2, for $10,000 including sales tax of$700, installation cost of$1000 and start-up testing of$500. Useful life 5 years or 5,000 machine hours, residual value $500, usage year 1, 1,800 hours, year2, 1,400 hours.

Using the double declining method, the net book value be at the end of year 2 would be:

A $4,032

B $4,472

C $4,212

D $4,392

Ida Sidha Karya Company is a family-owned company located on the island of Bali in Indonesia. The company produces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $880. Selected data for the company’s operations last year follow: Units in beginning inventory 0 Units produced 280 Units sold 240 Units in ending inventory 40 Variable costs per unit: Direct materials $ 115 Direct labor $ 335 Variable manufacturing overhead $ 35 Variable selling and administrative $ 25 Fixed costs: Fixed manufacturing overhead $ 63,000 Fixed selling and administrative $ 23,000 The absorption costing income statement prepared by the company’s accountant for last year appears below: Sales $ 211,200 Cost of goods sold 170,400 Gross margin 40,800 Selling and administrative expense 29,000 Net operating income $ 11,800 Required: 1. Under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year? 2. Prepare an income statement for last year using variable costing.

Due to erratic sales of its sole product—a high-capacity battery for laptop computers—PEM, Inc., has been experiencing financial difficulty for some time. The company’s contribution format income statement for the most recent month is given below:

Required:

3. Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of $33,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net operating income (loss)?

4. Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would grow sales. The new package would increase packaging costs by 0.50 cents per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4,200?

5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $54,000 each month.

a. Compute the new CM ratio and the new break-even point in unit sales and dollar sales.

b. Assume that the company expects to sell 20,700 units next month. Prepare two contribution format income statements, one assuming that operations are not automated and one assuming that they are. (Show data on a per unit and percentage basis, as well as in total, for each alternative.)

c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,700)?

Martinez, Inc. acquired a patent on January 1, 2017 for $40,500 cash. The patent was estimated to have a useful life of 10 years with no residual value. On December 31, 2018, before any adjustments were recorded for the year, management determined that the remaining useful life was 7 years (with that new estimate being effective as of January 1, 2018). On June 30, 2019, the patent was sold for $25,500.

Required:

1. Prepare the journal entry to record the acquisition of the patent on January 1, 2017.
2. Prepare the journal entry to record the annual amortization for 2017.
3. Compute the amount of amortization that would be recorded in 2018.
4. Determine the gain (loss) on sale on June 30, 2019.
5. Prepare the journal entry to record the sale of the patent on June 30, 2019.

Explore the legal and ethical constraints on implementing relationship marketing using the digital media. Think about things like privacy, use of data and net neutrality. Please think critically and support your thoughts with examples. Remember to cite any / all sources.

Discuss the origins of the double-entry bookkeeping. (300-400 words please and no copy paste/ also quote references)

Microsoft (manufacturing) vs Google (service)

How does this compare to a service organization?

provide a brief analysis of these two organizations.

#4, ch7

HomeLife Life Insurance Company has two service departments (actuarial and premium rating) and two production departments (advertising and sales). The distribution of each service department’s efforts (in percentages) to the other departments is shown in the following table: To From Actuarial Premium Rating Advertising Sales Actuarial — 70 % 15 % 15 % Premium 20 % — 20 60 The direct operating costs of the departments (including both variable and fixed costs) are: Actuarial $ 97,000 Premium rating 32,000 Advertising 77,000 Sales 57,000 Required: 1. Determine the total costs of the advertising and sales departments after using the direct method or allocation. 2. Determine the total costs of the advertising and sales departments after using the step method of allocation. 3. Determine the total costs of the advertising and sales departments after using the reciprocal method of allocation. Determine the total costs of the advertising and sales departments after using the direct method or allocation.