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 months of the year are as follows:
No. of Can Sales
Jan78,000
Feb56,000
Mar65,000
Apr59,000
May62,000
Jun58,000
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 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]
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.)
|
In: Accounting
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
In: Accounting
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 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 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? |
In: Accounting
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:
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 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:
Estimated sales for July, August, September, and October will be $270,000, $290,000, $280,000, and $300,000, respectively.
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.
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.
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.
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 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 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 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