Choi Company manufactures two skin care lotions, Smooth Skin and Silken Skin, from a joint process. The joint costs incurred are $310,000 for a standard production run that generates 180,000 pints of Smooth Skin and 280,000 pints of Silken Skin. Smooth Skin sells for $3.60 per pint, while Silken Skin sells for $5.10 per pint. (Do not round intermediate calculations. Round final answers to nearest whole dollar amounts.)
Required:
1. Assuming that both products are sold at the split-off point, how
much of the joint cost of each production run is allocated to
Smooth Skin using the relative sales value method?
2. If no separable costs are incurred after the split-off point,
how much of the joint cost of each production run is allocated to
Silken Skin using the physical measure method?
3. If separable processing costs beyond the split-off point are
$1.30 per pint for Smooth Skin and $1.80 per pint for Silken Skin,
how much of the joint cost of each production run is allocated to
Silken Skin using a net realizable value method?
4. If separable processing costs beyond the split-off point are
$1.30 per pint for Smooth Skin and $1.80 per pint for Silken Skin,
how much of the joint cost of each production run is allocated to
Smooth Skin using a physical measure method?
1. Relative sales value method - Smooth Skin:
2. Physical measure method - Silken Skin:
3. Net realizable value method - Silken Skin:
4. Physical measure method - Smooth Skin:
In: Accounting
Alva Community Hospital has five laboratory technicians who are responsible for doing a series of standard blood tests. Each technician is paid a salary of $30,000. The lab facility represents a recent addition to the hospital and cost $350,000. It is expected to last 20 years. Equipment used for the testing cost $10,000 and has a life expectancy of 5 years. In addition to the salaries, facility, and equipment, Alva expects to spend $200,000 for chemicals, forms, power, and other supplies. This $200,000 is enough for 200,000 blood tests.
Assuming that the driver (measure of output) for each type of cost is the number of blood tests run, classify each cost as a variable cost, discretionary fixed cost, or committed fixed cost.
| Technician salaries | |
| Laboratory facility | |
| Laboratory equipment | |
| Chemicals and other supplies |
In: Accounting
) Genosis Metals provided the following information for last month:
Sales $20,000
Variable costs 8,000
Fixed costs 4,000
Operating income $8,000
If sales reduce to half the amount in the next month, what is the projected operating income?
A) $0
B) $4,000
C) $2,000
D) $6,000
Answer the following questions using the information below:
Buildz Manufacturing currently produces 1,000 tables per month. The following per unit data for 1,000 tables apply for sales to regular customers:
Direct materials $50
Direct manufacturing labor 10
Variable manufacturing overhead 15
Fixed manufacturing overhead 30
Total manufacturing costs $105
2) The plant has capacity for 3,000 tables and is considering expanding production to 3,000 tables. What is the total cost of producing 3,000 tables?
A) $255,000
B) $225,000
C) $175,000
D) $235,000
3) What is the per unit cost when producing 3,000 tables?
A) $58.33
B) $175.00
C) $85.00
D) $125.45
Answer the following questions using the information below:
Pederson Company reported the following:
Manufacturing costs $150,000
Units manufactured 5,000
Units sold 4,700 units sold for $75 per unit
Beginning inventory 100 units
4) What is the average manufacturing cost per unit?
A) $40.00
B) $42.00
C) $30.00
D) $32.00
5) What is the manufacturing cost for the ending finished goods inventory?
A) $12,000
B) $8,000
C) $11,000
D) $5,000
Answer the following questions using the information below:
Northern Star sells several products. Information of average revenue and costs is as follows:
Selling price per unit $20.00
Variable costs per unit:
Direct material $4.00
Direct manufacturing labor $1.60
Manufacturing overhead $0.40
Selling costs $2.00
Annual fixed costs $96,000
The company sells 12,000 units at the end of the year.
6) The contribution margin per unit is ________.
A) $11.00
B) $12.00
C) $4.00
D) $14.00
In: Accounting
In: Accounting
The following trial balance was prepared for Tile, Etc., Inc. on December 31, 2017, after the closing entries were posted:
| Account Title | ||||||
| Cash | $ | 110,000 | ||||
| Accounts receivable | 125,000 | |||||
| Allowance for doubtful accounts | $ | 18,000 | ||||
| Inventory | 425,000 | |||||
| Accounts payable | 95,000 | |||||
| Common stock | 450,000 | |||||
| Retained earnings | 97,000 | |||||
Tile, Etc. had the following transactions in 2018:
Required
In: Accounting
(Show Work and Calculations)
On January 2, 2011 N&M Company issued $1 Million of 5-year, 3% bonds for $940,000, their interest payable semiannually every June 30, and Deember 31. N&M uses stright line amortization, having judged the difference under the effective interest method to be immaterial.
On February 28, 2015, N&M retired $100,000 of the bonds at 98.
Prepare the journal entries N&M should have made on each of the following dates:
1. February 28, 2015. 2. June 30, 2015.
In: Accounting
Mission Foods produces two flavors of tacos, chicken
and fish, with the following characteristics:
Chicken FishSelling price per
taco$3.40 $5.50 Variable cost per
taco 1.70 2.75 Expected sales
(tacos) 195,000 291,000
The total fixed costs for the company are
$124,000.
Required:
b. Assuming that the product mix would be
36 percent chicken and 64 percent fish at the break-even point,
compute the break-even volume. (In your computations, round
up the total units to break-even to the nearest whole number and
round other intermediate calculations to 2 decimal places.
Round your final answers up to the nearest whole
unit.)
In: Accounting
A company is considering a capital investment proposal where two alternatives involving differing degrees of mechanisation, are being considered. Both investments would have a five-year life. In Option 1 new machinery would cost £278,000, and in Option 2 £805,000. Anticipated scrap values after 5 years are £28,000 and £150,000 respectively. Depreciation is provided on a straight line basis. Option 1 would generate annual cash inflows of £100,000, and Option 2, £250,000. The cost of capital is 15%. Required:
Calculate for each option:
(i) the payback period
(ii) the accounting rate of return, based on average book value
(iii) the net present value
(iv) the internal rate of return.
In: Accounting
|
Using the financial data for the sample of Healthcare companies in the table below, calculate the average Financial Leverage. AND TELL ME HOW TO DO THIS . THANKS
In: Accounting
A lease agreement that qualifies as a finance lease calls for annual lease payments of $50,000 over a four-year lease term (also the asset’s useful life), with the first payment at January 1, the beginning of the lease. The interest rate is 7%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: c. If the lessee’s fiscal year is the calendar year, what would be the pretax amounts related to the lease that the lessee would report in its income statement for the first year ended December 31?
In: Accounting
Net revenues at an older manufacturing plant will be $2 million this year. The net revenue will decrease by 15% per year for 5 years, when the assembly plant will be closed (at the end of year 6). If the firm's interest rate is 10%, calculate the PW of the revenue stream. Use excel functions and a table.
In: Accounting
The
Shell Hunter
is a take-out food store at a popular beach resort.
Samantha Jones,
owner of the
Shell Hunter,
is deciding how much refrigerator space to devote to four different drinks. Pertinent data on these four drinks are as follows:
Natural
Cola
Lemonade
Punch
Orange Juice
Selling price per case
$18.50
$20.75
$28.10
$39.30
Variable cost per case
$14.75
$16.30
$20.50
$30.40
Cases sold per foot of shelf space per day
7
12
13
14
has a maximum front shelf space of 12 feet to devote to the four drinks. She wants a minimum of 1 foot and a maximum of 6 feet of front shelf space for each drink.
1.
Calculate the contribution margin per case of each type of drink.
2.
A coworker of
Jones's
recommends that she maximize the shelf space devoted to those drinks with the highest contribution margin per case. Do you agree with this recommendation? Explain briefly.
3.
What shelf-space allocation for the four drinks would you recommend for the
Shell Hunter?
Show your calculations.
In: Accounting
Suppose you owe $900 on your credit card and you decide to make no new purchases and to make the minimum monthly payment on the account. Assuming that the interest rate on your card is 2% per month on the unpaid balance and that the minimum payment is 3% of the total (balance plus interest), your balance after t months is given by B(t)=900(0.9894t).Find your balance at each of the given times. Complete parts (a) through (e) below.
(a) six months
After six months, the balance is $
(Round to the nearest cent as needed.)
(b) one year (remember that t is in months)
After one year, the balance is $
(Round to the nearest cent as needed.)
(c) seven years
After seven years, the balance is $
(Round to the nearest cent as needed.)
(d) nine years
After nine years, the balance is $
(Round to the nearest cent as needed.)
(e) On the basis of your answers to parts (a)–(d),
what advice would you give to your friends about minimum payments?
A.
The minimum payment maximizes the short-term cost and minimizes the long-term cost. It would be advisable to pay only the minimum monthly payment to decrease the short-term cost.
B.
The minimum payment minimizes the short-term cost and maximizes the long-term cost. It would be advisable to pay only the minimum monthly payment to decrease the short-term cost.
C.
The minimum payment minimizes the short-term cost and maximizes the long-term cost. It would be advisable to pay more than the minimum monthly payment when possible to decrease the overall cost.
D.
The minimum payment maximizes the short-term cost and minimizes the long-term cost. It would be advisable to pay more than the minimum monthly payment when possible to decrease the overall cost.
In: Accounting
On January 1, 20X8, Liv Ltd. (LL), a Canadian company, acquired
90% of Marcus Co. (MC), a foreign company for FC 623,200. At the
acquisition date, the carrying value of MC’s net assets equaled
their fair value except for the equipment, which had a carrying
value of FC 800,000 and a fair value of FC 880,000. At the
acquisition date, MC’s equipment had a remaining useful life of 10
years. There was an FC 4,000 impairment of the goodwill which
occurred evenly throughout 20X8.
Selected financial statements for LL and MC are presented
below.
Liv Ltd.
Statement of Financial Position
As of December 31, 20X8
(in $ CDN)
Assets:
Noncurrent assets:
Plant and equipment, net 2,752,000
Investment in Marcus Co. 1,371,040
4,123,040
Current assets:
Inventory 1,376,000
Accounts receivable 700,000
Cash and cash equivalents 562,080
2,638,080
Total assets 6,761,120
Shareholders’ Equity:
Share capital 1,376,000
Retained earnings 2,601,520
3,977,520
Liabilities:
Noncurrent liabilities:
Notes payable 1,860,000
Current liabilities:
Accounts payable and accrued liabilities 923,600
Total liabilities 2,783,600
Total shareholders’ equity and liabilities 6,761,120
Liv Ltd.
Statement of Income
For the year ended December 31, 20X8
(in $ CDN)
Sales 16,472,000
Dividend income 180,080
16,652,080
Cost of sales 8,256,000
Other expenses* 7,124,000 15,380,000
Net income 1,272,080
*includes depreciation
LL declared and paid dividends of $928,000 CDN on December 31, 20X8.
Marcus Co.
Statement of Financial Position
(in FC)
Dec. 31, Jan. 1
20X8 20X8
Assets:
Noncurrent assets:
Equipment, net 720,000 800,000
Current assets:
Inventory 484,000 364,000
Accounts receivable 408,000 280,000
Cash 360,000 164,000
1,252,000 808,000
Total assets 1,972,000 1,608,000
Shareholders’ equity:
Share capital 400,000 400,000
Retained earnings 390,000 146,000
790,000 546,000
Liabilities:
Noncurrent liabilities:
Notes payable 640,000 640,000
Current liabilities:
Accounts payable 542,000 422,000
Total liabilities 1,182,000 1,062,000
Total shareholders’ equity and liabilities 1,972,000 1,608,000
Marcus Co.
Statement of Income
For the year ended December 31, 20X8
(in FC)
Sales 8,400,000
Cost of sales 5,304,000
Other expenses* 2,688,000 7,992,000
408,000
*includes depreciation
Marcus Co.
Statement of Changes in Equity – Retained Earnings Section
For the year ended December 31, 20X8
(in FC)
Retained earnings, January 1, 20X8 146,000
Net income 408,000
Dividends declared (164,000)
Retained earnings, December 31, 20X8 390,000
MC declared and paid FC164,000 in dividends on December 31,
20X8.
Selected Exchange Rates
January 1, 20X8 FC1 = $2.20 CDN
December 31, 20X8 FC1 = $2.44 CDN
Date when ending inventory was purchased FC1 = $2.38 CDN
Average rate for 20X8 FC1 = $2.32 CDN
In: Accounting
The account balances appearing on the trial balance were taken from the general ledger of Ahmed's Copy Shop at October 31. Additional information for the month of October which has not yet been recorded in the accounts is as follows:
(a) A physical count of supplies indicates $300 on hand at October 31.
(b) The amount of insurance that expired in the month of October was $200.
(c) Depreciation on equipment for October was $400.
(d) Rent owed on the copy shop for the month of October was $600 but will not be paid until November.
|
Account title |
Trial Balance |
|
|
Debit |
Credit |
|
|
Cash |
1,000 |
|
|
Supplies |
1,100 |
|
|
Prepaid insurance |
2,200 |
|
|
Equipment |
24,000 |
|
|
Accumulated Depreciation |
4,500 |
|
|
Accounts payable |
2,400 |
|
|
Notes payable |
4,000 |
|
|
Ahmed’s capital |
15,300 |
|
|
Ahmed’s drawings |
2,400 |
|
|
Copy revenue |
4,900 |
|
|
Utilities expense |
400 |
|
|
Total |
31,100 |
31,100 |
Required:
(a) Prepare the adjusting entries required at October 31 for the transactions above.
(b) Prepare the adjusted trial balance for the month ended October 31.
The account balances appearing on the trial balance were taken from the general ledger of Ahmed's Copy Shop at October 31. Additional information for the month of October which has not yet been recorded in the accounts is as follows:
(a) A physical count of supplies indicates $300 on hand at October 31.
(b) The amount of insurance that expired in the month of October was $200.
(c) Depreciation on equipment for October was $400.
(d) Rent owed on the copy shop for the month of October was $600 but will not be paid until November.
|
Account title |
Trial Balance |
|
|
Debit |
Credit |
|
|
Cash |
1,000 |
|
|
Supplies |
1,100 |
|
|
Prepaid insurance |
2,200 |
|
|
Equipment |
24,000 |
|
|
Accumulated Depreciation |
4,500 |
|
|
Accounts payable |
2,400 |
|
|
Notes payable |
4,000 |
|
|
Ahmed’s capital |
15,300 |
|
|
Ahmed’s drawings |
2,400 |
|
|
Copy revenue |
4,900 |
|
|
Utilities expense |
400 |
|
|
Total |
31,100 |
31,100 |
Required:
(a) Prepare the adjusting entries required at October 31 for the transactions above.
(b) Prepare the adjusted trial balance for the month ended October 31.
In: Accounting