Questions
Marvel Parts, Inc., manufactures auto accessories. One of the company’s products is a set of seat...

Marvel Parts, Inc., manufactures auto accessories. One of the company’s products is a set of seat covers that can be adjusted to fit nearly any small car. The company has a standard cost system in use for all of its products. According to the standards that have been set for the seat covers, the factory should work 1,075 hours each month to produce 2,150 sets of covers. The standard costs associated with this level of production are:

Total Per Set
of Covers
Direct materials $ 54,825 $ 25.50
Direct labor $ 10,750 5.00
Variable manufacturing overhead (based on direct labor-hours) $ 5,375 2.50
$ 33.00

During August, the factory worked only 800 direct labor-hours and produced 2,500 sets of covers. The following actual costs were recorded during the month:

Total Per Set
of Covers
Direct materials (12,500 yards) $ 58,750 $ 23.50
Direct labor $ 13,000 5.20
Variable manufacturing overhead $ 7,000 2.80
$ 31.50

At standard, each set of covers should require 3.0 yards of material. All of the materials purchased during the month were used in production.

Required:

1. Compute the materials price and quantity variances for August.

2. Compute the labor rate and efficiency variances for August.

3. Compute the variable overhead rate and efficiency variances for August.

In: Accounting

3. Happy Peanut Inc. produces all-natural organic peanut can. The sales budget for the first six...

3. Happy Peanut Inc. produces all-natural organic peanut can. The sales budget for the first six months of the year are as follows:

​​

No. of Can Sales ​​

​​Jan​​78,000

Feb​​56,000​

​​Mar​​65,000​​

​​Apr​​59,000

​​May​​62,000

​​Jun​​58,000​

Company policy requires that ending inventories for each month be 15% of the next month’s sales. At the beginning of Jan, the inventory of peanut is 14,500 cans. Each can of peanut needs 20 ounces of peanuts. Company’s policy requires that ending inventories of raw materials for each month be 10% of the next month’s production needs. At the beginning of Jan, the inventories of peanuts are 130,000 ounces.

3.1 Prepare a production budget for the first quarter of the year. Show the number of peanut cans that should be produced each month as well as for the quarter in total.​​​​​​​​

3.2 Prepare separate direct materials purchased budgets for raw peanuts of each month as well as for the quarter in total.

In: Accounting

Exercise 11-8 Volume Trade-Off Decisions [LO11-5, LO11-6] Barlow Company manufactures three products—A, B, and C. The...

Exercise 11-8 Volume Trade-Off Decisions [LO11-5, LO11-6]

Barlow Company manufactures three products—A, B, and C. The selling price, variable costs, and contribution margin for one unit of each product follow:

Product
A B C
Selling price $ 180 $ 270 $ 240
Variable expenses:
Direct materials 24 80 32
Other variable expenses 102 90 148
Total variable expenses 126 170 180
Contribution margin $ 54 $ 100 $ 60
Contribution margin ratio 30 % 37 % 25 %

The same raw material is used in all three products. Barlow Company has only 6,000 pounds of raw material on hand and will not be able to obtain any more of it for several weeks due to a strike in its supplier’s plant. Management is trying to decide which product(s) to concentrate on next week in filling its backlog of orders. The material costs $8 per pound.

Required:

1. Calculate the contribution margin per pound of the constraining resource for each product.

2. Assuming that Barlow has unlimited demand for each of its three products, what is the maximum contribution margin the company can earn when using the 6,000 pounds of raw material on hand?

3. Assuming that Barlow’s estimated customer demand is 500 units per product line, what is the maximum contribution margin the company can earn when using the 6,000 pounds of raw material on hand?

4. A foreign supplier could furnish Barlow with additional stocks of the raw material at a substantial premium over the usual price. Assuming Barlow’s estimated customer demand is 500 units per product line and that the company has used its 6,000 pounds of raw material in an optimal fashion, what is the highest price Barlow Company should be willing to pay for an additional pound of materials?

In: Accounting

    E2-6 (Algo) Finding Unknown Values in the Cost of Goods Manufactured Report [LO 2-3, 2-6]...

   

E2-6 (Algo) Finding Unknown Values in the Cost of Goods Manufactured Report [LO 2-3, 2-6]

Mulligan Manufacturing Company uses a job order cost system with overhead applied to products at a rate of 150 percent of direct labor cost.

Required:
Treating each case independently, selected from the manufacturing data given below, find the missing amounts. You should do them in the order listed. (Hint: For the manufacturing costs in Case 3, first solve for conversion costs and then determine how much of that is direct labor and how much is manufacturing overhead.) (Do not round your intermediate calculations. Round your final answers to the nearest whole dollar. Enter all amounts as positive values.)

   

Case 1 Case 2 Case 3
Direct material used 12,000 10,800
Direct labor 14,000
Manufacturing overhead applied 11,000
Total current manufacturing costs 28,000 31,800
Beginning work in process inventory 10,000 9,000
Ending work in process inventory 4,500 8,300
Cost of goods manufactured 41,000 19,001
Beginning finished goods inventory 4,000 10,100
Ending finished goods inventory 7,400 6,000
Cost of goods sold 35,000 39,000


   

In: Accounting

In October 2017, Nicole of Nicole’s Getaway Spa (NGS) eliminated all existing inventory of cosmetic items....

In October 2017, Nicole of Nicole’s Getaway Spa (NGS) eliminated all existing inventory of cosmetic items. The trouble of ordering and tracking each product line had exceeded the profits earned. In December, a supplier asked her to sell a prepackaged spa kit. Feeling she could manage a single product line, Nicole agreed. NGS would make monthly purchases from the supplier at a cost that included production costs and a transportation charge. The spa would use a perpetual inventory system to keep track of its new inventory.
  
    On December 30, 2017, NGS purchased ten units at a total cost of $7.00 per unit. NGS purchased thirty more units at $9.00 in February 2018, but returned five defective units to the supplier. In March, NGS purchased fifteen units at $11.00 per unit. In May, fifty units were purchased at $11.00 per unit; however, NGS took advantage of a 2.00/10, n/30 discount from the supplier. In June, NGS sold fifty units at a selling price of $12.90 per unit and thirty-five units at $10.90 per unit.


Required:
1.
State whether the transportation cost included in each purchase should be recorded as a cost of the inventory or immediately expensed.

  • Immediately expensed

  • Inventory cost



2. Compute the Cost of Goods Available for Sale, Cost of Goods Sold, and Cost of Ending Inventory using the first-in, first-out (FIFO) method. (Do not round intermediate calculations. Round final answers to the nearest dollar amount.)



3-a. Calculate the inventory turnover ratio, using the inventory on hand at December 31, 2017, as the beginning inventory. (Round your answer to 1 decimal place.)

In: Accounting

Describe the role of the following agency: - Treasury

Describe the role of the following agency:

- Treasury

In: Accounting

which of the following is a reason the standard mileage rate would be allowed in 2018...

which of the following is a reason the standard mileage rate would be allowed in 2018 for business owner?

In: Accounting

PUBLIC SECTOR ACCOUNTING ASSIGNMENT CASH vs ACCRUAL ACCOUNTING IN PUBLIC SERVICES Transition from cash based accounting...

PUBLIC SECTOR ACCOUNTING ASSIGNMENT

CASH vs ACCRUAL ACCOUNTING IN PUBLIC SERVICES

Transition from cash based accounting to modified accrual accounting has imperatively been slow but a gradually evolving global movement across the nation which is being undertaken by majority state and local governments over past two decades. This migration from cash to modified accrual accounting was being called from increased demand for accountability and transparency in the public sector which only the use of cash accounting was not able to suffice. Therefore, the Public Service Committee [PSC] of International Federation of Accountants [IFAC] has been continually putting forward words of encouragement to adopt the International Public Sector Accounting Standards [IPSAS] to all developing nations.

Many countries has made several attempts to achieve this on two previous occasions back in the years 1994 and 1998, however the project of migration was put aside on both occasions. Besides that, in the year 2005 a similar attempt was made, yet public service ended up adopting a different approach which was used in the previous unsuccessful attempts. Despite of many years of attempts, many countries are still in the process of this migration. It was noted that overall unstable government and regular coups created hindrance in the progress of fast migration towards modified accrual accounting.

Therefore, modified accrual accounting is yet to be effectively blended into the accounting systems of one countries public service. IFAC has signified that there may have been certain “factors” that has influenced the migration of cash based accounting to modified accrual accounting and made it a slow progress.

DISCUSSION POINT 1: From your viewpoint what could have been these factors that IFAC is placing emphasis on?

Required: Students must include a reference list [Mandatory] – APA referencing style AND in writing the report, the emphasis should be placed on the above mentioned discussion point [content/body of the assignment]

In: Accounting

Carlsbad Corporation's sales are expected to increase from $5 million in 2019 to $6 million in...

Carlsbad Corporation's sales are expected to increase from $5 million in 2019 to $6 million in 2020, or by 20%. Its assets totaled $5 million at the end of 2019. Carlsbad is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2019, current liabilities are $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accrued liabilities. Its profit margin is forecasted to be 6%, and the forecasted retention ratio is 30%. Use the AFN equation to forecast Carlsbad's additional funds needed for the coming year. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest dollar.

$  

Now assume the company's assets totaled $3 million at the end of 2019. Is the company's "capital intensity" the same or different comparing to initial situation?
-Select-DifferentThe or sameItem

In: Accounting

FastTrack​ Bikes, Inc. is thinking of developing a new composite road bike. Development will take six...

FastTrack​ Bikes, Inc. is thinking of developing a new composite road bike. Development will take six years and the cost is

$200,000

per year. Once in​ production, the bike is expected to make

$300,000

per year for

10

years. The cash inflows begin at the end of year 7.For parts​ a-c, assume the cost of capital is

10.0%.

a. Calculate the NPV of this investment opportunity. Should the company make the​ investment?

b. Calculate the IRR and use it to determine the maximum deviation allowable in the cost of capital estimate to leave the decision unchanged.

c. How long must development last to change the​ decision?

For parts​ d-f, assume the cost of capital is

14.0%.

d. Calculate the NPV of this investment opportunity. Should the company make the​ investment?

e. How much must this cost of capital estimate deviate to change the​ decision?

f. How long must development last to change the​ decision?

a. Calculate the NPV of this investment opportunity.

If the cost of capital is

10.0%​,

the NPV is

​$nothing.

In: Accounting

The following information relates to Dane City during its fiscal year ended December 31, 20X2: On...

The following information relates to Dane City during its fiscal year ended December 31, 20X2:

  1. On October 31, 20X2, to finance the construction of a city hall annex, Dane issued 8 percent, 9-year general obligation bonds at their face value of $617,000. Construction expenditures during the period equaled $365,300.
  2. Dane reported $110,300 from hotel room taxes restricted for tourist promotion in a special revenue fund. The fund paid $82,000 for general promotions and $23,000 for a motor vehicle.
  3. Dane transferred 20X2 general fund revenues of $105,500 to a debt service fund and used them to repay $97,000 of 9 percent, 14-year term bonds and to pay $8,500 of interest. The bonds were used to acquire a citizens’ center.
  4. At December 31, 20X2, as a consequence of past services, city firefighters had accumulated entitlements for compensated absences of $83,000. General fund resources available at December 31, 20X2, are expected to be used to settle $18,000 of this amount, and $65,000 is expected to be paid out of future general fund resources.
  5. At December 31, 20X2, Dane was responsible for $84,000 of outstanding general fund encumbrances, including the $8,900 for supplies in the following table.
  6. Dane uses the purchases method to account for supplies. The following information relates to supplies:
Inventory—1/1/X2 $ 40,000
—12/31/X2 43,000
Encumbrances outstanding—1/1/X2 4,000
—12/31/X2 8,900
Purchase orders during 20X2 194,000
Amount credited to vouchers payable during 20X2 181,200


Required:
For items 1 through 10, determine the amounts based solely on the preceding information.

1. What is the amount of 20X2 general fund transfers out?

general fund transfers out



2. How much should be reported in 20X2 as general fund liabilities from entitlements for compensated absences?

general fund liabilities



3. What is the 20X2 assigned amount of the general fund balance?

general fund balance

4. What is the 20X2 capital projects fund balance?

capital projects fund balance

5. What is the 20X2 fund balance on the special revenue fund for tourist promotion?

special revenue fund



6. What is the amount of 20X2 debt service fund expenditures?

debt service fund expenditures

7. What amount should be included in the governmentwide financial statements for the cost of long-term assets acquired in 20X2?

cost of long-term assets

8. What amount stemming from the 20X2 transactions and events decreased the long-term debt liabilities reported in the governmentwide financial statements?

amount of decrease

9. Using the purchases method, what is the amount of 20X2 supplies expenditures?

supplies expenditures

10. What was the total amount of 20X2 supplies encumbrances?

supplies encumbrances

In: Accounting

Beech Corporation is a merchandising company that is preparing a master budget for the third quarter...

Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company’s balance sheet as of June 30th is shown below:

Beech Corporation
Balance Sheet
June 30
Assets
Cash $ 92,000
Accounts receivable 130,000
Inventory 48,600
Plant and equipment, net of depreciation 216,000
Total assets $ 486,600
Liabilities and Stockholders’ Equity
Accounts payable $ 77,000
Common stock 329,000
Retained earnings 80,600
Total liabilities and stockholders’ equity $ 486,600

Beech’s managers have made the following additional assumptions and estimates:

  1. Estimated sales for July, August, September, and October will be $270,000, $290,000, $280,000, and $300,000, respectively.

  2. All sales are on credit and all credit sales are collected. Each month’s credit sales are collected 45% in the month of sale and 55% in the month following the sale. All of the accounts receivable at June 30 will be collected in July.

  3. Each month’s ending inventory must equal 20% of the cost of next month’s sales. The cost of goods sold is 60% of sales. The company pays for 30% of its merchandise purchases in the month of the purchase and the remaining 70% in the month following the purchase. All of the accounts payable at June 30 will be paid in July.

  4. Monthly selling and administrative expenses are always $50,000. Each month $5,000 of this total amount is depreciation expense and the remaining $45,000 relates to expenses that are paid in the month they are incurred.

  5. The company does not plan to borrow money or pay or declare dividends during the quarter ended September 30. The company does not plan to issue any common stock or repurchase its own stock during the quarter ended September 30.

Required:

1. Prepare a schedule of expected cash collections for July, August, and September. Also compute total cash collections for the quarter ended September 30.

2-a. Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30.

2-b. Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September. Also compute total cash disbursements for merchandise purchases for the quarter ended September 30.

3. Prepare an income statement for the quarter ended September 30.

4. Prepare a balance sheet as of September 30

In: Accounting

[The following information applies to the questions displayed below.] Beech Corporation is a merchandising company that...

[The following information applies to the questions displayed below.]

Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company’s balance sheet as of June 30th is shown below:


Beech Corporation
Balance Sheet
June 30
Assets
Cash $  73,000
Accounts receivable 125,000
Inventory 56,000
Plant and equipment, net of depreciation 221,000
Total assets $ 475,000
Liabilities and Stockholders’ Equity
Accounts payable $  82,000
Common stock 309,000
Retained earnings 84,000
Total liabilities and stockholders’ equity $ 475,000

Beech’s managers have made the following additional assumptions and estimates:

1. Estimated sales for July, August, September, and October will be $320,000, $340,000, $330,000, and $350,000, respectively.

2. All sales are on credit and all credit sales are collected. Each month’s credit sales are collected 35% in the month of sale and 65% in the month following the sale. All of the accounts receivable at June 30 will be collected in July.

3. Each month’s ending inventory must equal 25% of the cost of next month’s sales. The cost of goods sold is 70% of sales. The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% in the month following the purchase. All of the accounts payable at June 30 will be paid in July.

4. Monthly selling and administrative expenses are always $40,000. Each month $6,000 of this total amount is depreciation expense and the remaining $34,000 relates to expenses that are paid in the month they are incurred.

5. The company does not plan to borrow money or pay or declare dividends during the quarter ended September 30. The company does not plan to issue any common stock or repurchase its own stock during the quarter ended September 30.


Required:

1. Prepare a schedule of expected cash collections for July, August, and September. Also compute total cash collections for the quarter ended September 30.

   

2-a. Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30.

   

2-b. Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September. Also compute total cash disbursements for merchandise purchases for the quarter ended September 30.

   

3. Prepare an income statement for the quarter ended September 30.

   

4. Prepare a balance sheet as of September 30.

    


In: Accounting

Longboat Manufacturing produces a single product requiring the following direct material and direct labor: Cost per...

Longboat Manufacturing produces a single product requiring the following direct material and direct labor:

Cost per Unit of Input Required Amount per Unit of Product
Material A $9 / pound 20 ounces
Material B $7 / pound 4 ounces
Material C $25 / gallon 0.4 gallon
Cutting labor $12 / hour 45 minutes
Shaping labor $15 / hour 15 minutes
Finishing labor $14 / hour 75 minutes

Manufacturing overhead consists of indirect materials, $0.60 per unit of product; indirect labor, $1,000 per month plus $0.75 per unit of product; factory maintenance, $17,000 per year plus $0.65 per unit of product; factory depreciation, $18,000 per year; and annual factory property taxes, $10,000. Selling and administrative expenses include the salaries of a sales manager, $40,000 per year; an office manager, $22,000 per year; and two salespersons, each of whom is paid a base salary of $15,000 per year and a commission of $4 per unit sold. Advertising and promotion of the product are done through a year-round media package program costing $1,500 per week.

a. Analyze all cost and expense factors to determine a general formula (based on units of production) for total cost.

Round variable cost per unit answers to two decimal places, if applicable.

Total Fixed Costs Variable Cost per Unit
Material A Answer Answer
Material B Answer Answer
Material C Answer Answer
Cutting labor Answer Answer
Shaping labor Answer Answer
Finishing labor Answer Answer
Manufacturing overhead:
Indirect material Answer Answer
Indirect labor Answer Answer
Factory maintenance Answer Answer
Factory depreciation Answer Answer
Factory property taxes Answer Answer
Selling and administration expenses
Sales administration salaries Answer Answer
Office administration salaries Answer Answer
Sales salaries and commissions Answer Answer
Advertising and promotion Answer Answer
Total component cost Answer Answer

b. Assuming a relevant range of 10,000 to 30,000 units, what is the estimated unit cost for producing and selling 10,000 units? 25,000 units? Explain the variation in unit cost at the two levels of production.

Round answers to two decimal places.

Estimated per unit cost for 10,000 units $Answer

Estimated per unit cost for 25,000 units $Answer

c. If 22,000 units are produced and sold in a year, what selling price results in a net income before income tax of $75,000?

Round answers to two decimal places, if needed.

$Answer

In: Accounting

Bella Donna Company has 100,000 shares of $4 par common stock issued and outstanding as of...

Bella Donna Company has 100,000 shares of $4 par common stock issued and outstanding as of January 1, 2018. The shares were originally issued for $9 per share. On February 3, 2018, Bella Donna repurchased 3,690 shares at $6 per share for the purposes of retiring them. What will be the balance in Paid in capital in excess of par after February 3rd transaction?

PLEASE SHOW ALL WORK AND EXPLAIN, THANK YOU

In: Accounting