The Regal Cycle Company manufactures three types of bicycles�a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Total Dirt Bikes Mountain Bikes Racing Bikes Sales $ 919,000 $ 261,000 $ 404,000 $ 254,000 Variable manufacturing and selling expenses 461,000 113,000 195,000 153,000 Contribution margin 458,000 148,000 209,000 101,000 Fixed expenses: Advertising, traceable 69,600 8600 40300 20700 Depreciation of special equipment 43,600 20,200 7700 15700 Salaries of product-line managers 115,200 40,100 38800 36300 Allocated common fixed expenses* 183,000 52,200 80800 50800 Total fixed expenses 412,000 121,000 167600 123500 Net operating income (loss) $ 45,800 $ 26,900 $ 41400 $ (22,500) home / study / math / other math / other math questions and answers / the regal cycle company manufactures three types of bicycles�a dirt bike, a mountain bike, ... Question: The Regal Cycle Company manufactures three types of bicycles�a dirt bike, a mountain bike, and a ... (26 bookmarks) The Regal Cycle Company manufactures three types of bicycles�a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Total Dirt Bikes Mountain Bikes Racing Bikes Sales $ 300,000 $ 90,000 $ 150,000 $ 60,000 Variable manufacturing and selling expenses 120,000 27,000 60,000 33,000 Contribution margin 180,000 63,000 90,000 27,000 Fixed expenses: Advertising, traceable 30,000 10,000 14,000 6,000 Depreciation of special equipment 23,000 6,000 9,000 8,000 Salaries of product-line managers 35,000 12,000 13,000 10,000 Allocated common fixed expenses* 60,000 18,000 30,000 12,000 Total fixed expenses 148,000 46,000 66,000 36,000 Net operating income (loss) $ 32,000 $ 17,000 $ 24,000 $ (9,000) *Allocated on the basis of sales dollars. Management is concerned about the continued losses shown by the racing bikes and wants a recommendation as to whether or not the line should be discontinued. The special equipment used to produce racing bikes has no resale value and does not wear out. Required: 1a. What is the impact on net operating income by discontinuing racing bikes? (Decreases should be indicated by a minus sign.) 1b. Should production and sale of the racing bikes be discontinued? Yes No 2a. Prepare a segmented income statement. 2b. Would a segmented income statement format be more usable to management in assessing the long-run profitability of the various product lines.

Janes Paper Products (JPP) manufactures inkjet, laser and specialty papers for the consumer market. JPP uses a process costing system.

Information for February in the first processing department (Mixing) is as follows.

Required:

1. Using Weighted-Average Method compute equivalent units for direct material and conversion costs. Prepare Cost of Production Schedule that includes the cost per equivalent units for direct material and conversion costs, and summary of costs to account for and the cost of units transferred and the cost of the units in ending work in process.

2. Using FIFO Method compute equivalent units for direct material and conversion costs. Prepare Cost of Production Schedule that includes the cost per equivalent units for direct material and conversion costs, and summary of costs to account for and the cost of units transferred and the cost of the units in ending work in process.

Scientific method

Read the following story carefully, then answer all the questions that appear at the end of it. [It is a hypothetical study, raised by the teacher, I present all the available information. Than you for your help]

Ana was looking for a project for her school's Science Fair. You read in a scientific journal about a study in which chickens were fed antibiotics. According to the study, chickens that were fed antibiotics grew faster than those that were not fed antibiotics.

Ana thought about this experiment for a long time. After reading more about the topic in the library, she decided to design an experiment using shrimp. She selected a species that grows to a maximum size of 10 centimeters and mature in approximately 6 to 8 weeks. The female produces 100 to 400 eggs that hatch in 2 to 3 weeks. Ana's teacher helped her order 144 shrimp and Ana obtained the antibiotic Aureomycin from her doctor.

When the shrimp arrived, Ana divided them into 6 groups, each group had 12 males and 12 females. She placed each group in identical glass containers, gave everyone the same food, and changed the water every 7 days. The 6 groups were treated in the same way except that different doses of the antibiotic were added to 5 containers each time the water was changed, as indicated in the following table:

Weekly before changing the water, the average size for each group was noted. These data are presented in the following table.

1. Define the problem
2. Express a possible hypothesis
3. Identify the variables: independent and dependent, and 5 variables under control
4. Is there a control group in this research? What function does it have?
5. Underline all the sentences that are part of the experimental design.
6. Analyze the data, what is the conclusion?

Condensed financial data of Flounder Company for 2017 and 2016 are presented below.

Additional information:

During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2017.

Prepare a statement of cash flows using the direct method. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

You are a manager who works for Ross, Sigh LLP, a local accounting firm. Your client is Transport Logistics (TL) transports hazardous materials from disposal facilities located in Alberta to a secure area.

Upon review of the minutes of the Board of Directors, you discover that TL has set up a higher than historical average provision for contingent liabilities related to spills that occurred while transporting the hazardous materials.

Required: Discuss 5 audit procedures performed during the completion of the audit phase that you would perform pertaining to contingent liabilities for TL.

Burns Corporation's net income last year was $99,200. Changes in the company's balance sheet accounts for the year appear below:

The company did not dispose of any property, plant, and equipment, sell any long-term investments, issue any bonds payable, or repurchase any of its own common stock during the year. The company declared and paid a cash dividend of $4,300.

Required:

a. Prepare the operating activities section of the company's statement of cash flows for the year. (Use the indirect method.)

b. Prepare the investing activities section of the company's statement of cash flows for the year.

c. Prepare the financing activities section of the company's statement of cash flows for the year.

Curtain Co. paid dividends of $1,500; $3,000; and $4,000 during Year 1, Year 2, and Year 3, respectively. The company had 700 shares of 3.5%, $100 par value preferred stock outstanding that paid a cumulative dividend. The amount of dividends received by the common shareholders during Year 3 would be:

• 2,450.

• $1,500.

• $950.

• $1,150.

During Heaton Company’s first two years of operations, it reported absorption costing net operating income as follows: Year 1 Year 2 Sales (@ $61 per unit) $ 915,000 $ 1,525,000 Cost of goods sold (@ $36 per unit) 540,000 900,000 Gross margin 375,000 625,000 Selling and administrative expenses* 294,000 324,000 Net operating income $ 81,000 $ 301,000 * $3 per unit variable; $249,000 fixed each year. The company’s $36 unit product cost is computed as follows: Direct materials $ 6 Direct labor 13 Variable manufacturing overhead 2 Fixed manufacturing overhead ($300,000 ÷ 20,000 units) 15 Absorption costing unit product cost $ 36 Production and cost data for the first two years of operations are: Year 1 Year 2 Units produced 20,000 20,000 Units sold 15,000 25,000 Required: 1. Using variable costing, what is the unit product cost for both years? 2. What is the variable costing net operating income in Year 1 and in Year 2? 3. Reconcile the absorption costing and the variable costing net operating income figures for each year.

Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Inc.) on January 1, 2016. The annual reporting period ends December 31. The trial balance on January 1, 2018, follows (the amounts are rounded to thousands of dollars to simplify):

Transactions and events during 2018 (summarized in thousands of dollars) follow:

1. Borrowed $13 cash on March 1 using a short-term note.
2. Purchased land on March 2 for future building site; paid cash, $7.
3. Issued additional shares of common stock on April 3 for $34.
4. Purchased software on July 4, $12 cash.
5. Purchased supplies on account on October 5 for future use, $17.
6. Paid accounts payable on November 6, $14.
7. Signed a $30 service contract on November 7 to start February 1, 2019.
8. Recorded revenues of $140 on December 8, including $30 on credit and $110 collected in cash.
9. Recognized salaries and wages expense on December 9, $75 paid in cash.
10. Collected accounts receivable on December 10, $14.

Data for adjusting journal entries as of December 31:

11. Unrecorded amortization for the year on software, $5.
12. Supplies counted on December 31, 2018, $11.
13. Depreciation for the year on the equipment, $7.
14. Interest of $2 to accrue on notes payable.
15. Salaries and wages earned but not yet paid or recorded, $13.
16. Income tax for the year was $9. It will be paid in 2019.

7. Prepare the closing journal entry. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in thousands of dollars.)

On December 31, Pacifica, Inc., acquired 100 percent of the voting stock of Seguros Company. Pacifica will maintain Seguros as a wholly owned subsidiary with its own legal and accounting identity. The consideration transferred to the owner of Seguros included 58,430 newly issued Pacifica common shares ($20 market value, $5 par value) and an agreement to pay an additional $130,000 cash if Seguros meets certain project completion goals by December 31 of the following year. Pacifica estimates a 50 percent probability that Seguros will be successful in meeting these goals and uses a 4 percent discount rate to represent the time value of money.

Immediately prior to the acquisition, the following data for both firms were available:

In addition, Pacifica assessed a research and development project under way at Seguros to have a fair value of $137,000. Although not yet recorded on its books, Pacifica paid legal fees of $20,400 in connection with the acquisition and $10,200 in stock issue costs.

a. Prepare Pacifica’s entries to account for the consideration transferred to the former owners of Seguros, the direct combination costs, and the stock issue and registration costs.(Use a 0.961538 present value factor where applicable. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

b.&c. Present a worksheet showing the postacquisition column of accounts for Pacifica and the consolidated balance sheet as of the acquisition date.

(For accounts where multiple consolidation entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet. Round your answers to the nearest whole dollar.)

1. Jan. 1: Xenon issued $40,000 of common stock.
2. Jan. 1: Xenon paid $18,000 cash to purchase an equipment. The equipment has an estimated useful life of 5 years and an estimated salvage value of $3,000.
3. Jan. 1: Xenon paid $7,000 cash for two years of insurance coverage starting on Jan. 1, 2020.
4. March 1:Xenon rented a building and paid $2,400 for one year’s rent (starting 3/1).
5. April 1: Xenon purchased $5,700 of inventory on account.
6. June 1: Xenon sold $23,000 of software on account. The cost is $3,500.
7. Sept. 1: Xenon collected $7,000 cash from its customers for the previous sales on account.
8. Oct 31: Xenon paid $5,000 cash for employee wages earned during the first ten months (Jan 1 to October 31, $500 per month).
9. Nov 1: Xenon paid $3,300 cash to suppliers for inventory purchases made on account.
10. Dec 1: Xenon started an on-line service where customers pay an annual subscription fee when they sign up for a 12-month service plan. On Dec. 1, Xenon received $3,600 of cash from customers for one year of subscription fees (for online services from Dec 1, 2020 to Nov 30, 2021).

Additional Info:

-Xenon uses Straight Line Depreciation

-Two months of employee wages was accrued on Dec. 31, 2020. Xenon plans to pay employees Jan. 1 2021

Questions

Fill out the summary of T-Accounts for

1. Revenue and Expenses (Temporary Income Statement Accounts)

       -Includes: Sales and Service Revenue, Costs of Goods sold, Wages Expense, Insurance Expense, Rent Expense, Depreciation Expense.

2. Assets (Permanent Balance Sheet Accounts)

      -Includes: Cash, Inventory, accounts receivable, prepaid insurance, equipment, accumulated depreciation, prepaid rent.

3. Liabilities and Equities (Permanent Balance Sheet Accounts)

      -Includes: Accounts payable, unearned revenue, wages payable, common stock, retained earnings

4. What are the total Assets?

5. What are the total Liabilities & Shareholder's Equity?

    Note: Total assets and Liabilities + Shareholders equity should balance.

Use the following information regarding Musketeer Novelties:

Activity Activity Costs Cost driver

Product design $212,000 1,500 design hours

Product scheduling $180,000 400 Set ups

Machining $600,000 5,000 machine hours

Material Handling $160,000 4,000 Pallet moved

Cost and activity with procuring 2,000 units of a Blueblob Bobblehead are as follows:

Direct Materials: $5,400

Direct Labor: $1,200

Design Hours: 5

Set-Ups: 3

Labor Hours 40

Machine Hours 18

Pallets Moved 10

United produced 400

1.) Develop activity rates for each of the four activities of Musketeer Novelties

2.) What is the product cost for ONE Blueblob Bobblehead using ABC (ACTIVITY BASE COSTING) rates for applying overhead?

3.)What is the product cost of one Blueblob bobblehead if Musketeer Novelties uses a plant-wide overhead rate based on machine hours. (assume 5,000 machine hours plant-wide)

I have to have two entire pages for Managerial Accounting....

Your topic is the how managerial accounting information is used in decision making. Or how can a management accountant use information to make decisions. What decisions can be made with the information from managerial accounting

Budgeting is generally thought to be an important function within an organization from a planning, control, and performance assessment perspective. Discuss whether you believe that budgeting process should be a priority in the organizationn and why or why not. Be sure that you address the planning, control, and performance assessment characteristics of operations in your response. Ensure your response addresses budgeting of income, balance sheet, and cash flows.

Thermal Rising, Inc., makes paragliders for sale through specialty sporting goods stores. The company has a standard paraglider model, but also makes custom-designed paragliders. Management has designed an activity-based costing system with the following activity cost pools and activity rates: Activity Cost Pool Activity Rate Supporting direct labor $ 20 per direct labor-hour Order processing $ 202 per order Custom design processing $ 265 per custom design Customer service $ 432 per customer Management would like an analysis of the profitability of a particular customer, Big Sky Outfitters, which has ordered the following products over the last 12 months: Standard Model Custom Design Number of gliders 14 2 Number of orders 1 2 Number of custom designs 0 2 Direct labor-hours per glider 26.50 33.00 Selling price per glider $ 1,700 $ 2,390 Direct materials cost per glider $ 464 $ 570 The company’s direct labor rate is $20 per hour. Required: Using the company’s activity-based costing system, compute the customer margin of Big Sky Outfitters. (Do not round intermediate calculations. Round your final answer to the nearest dollar.)