Tami Tyler opened Tami’s Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler’s personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University.
|
Tami’s Creations, Inc. Income Statement For the Quarter Ended March 31 |
||||||
| Sales (29,000 units) | $ | 1,160,000 | ||||
| Variable expenses: | ||||||
| Variable cost of goods sold | $ | 475,600 | ||||
| Variable selling and administrative | 195,750 | 671,350 | ||||
| Contribution margin | 488,650 | |||||
| Fixed expenses: | ||||||
| Fixed manufacturing overhead | 288,000 | |||||
| Fixed selling and administrative | 214,150 | 502,150 | ||||
| Net operating loss | $ | ( 13,500) | ||||
Ms. Tyler is discouraged over the loss shown for the quarter, particularly because she had planned to use the statement as support for a bank loan. Another friend, a CPA, insists that the company should be using absorption costing rather than variable costing and argues that if absorption costing had been used the company probably would have reported at least some profit for the quarter.
At this point, Ms. Tyler is manufacturing only one product—a swimsuit. Production and cost data relating to the swimsuit for the first quarter follow:
| Units produced | 32,000 | |||
| Units sold | 29,000 | |||
| Variable costs per unit: | ||||
| Direct materials | $ | 7.50 | ||
| Direct labor | $ | 7.30 | ||
| Variable manufacturing overhead | $ | 1.60 | ||
| Variable selling and administrative | $ | 6.75 | ||
Required:
1. Complete the following:
a. Compute the unit product cost under absorption costing.
b. What is the company’s absorption costing net operating income (loss) for the quarter?
c. Reconcile the variable and absorption costing net operating income (loss) figures.
3. During the second quarter of operations, the company again produced 32,000 units but sold 35,000 units. (Assume no change in total fixed costs.)
a. What is the company’s variable costing net operating income (loss) for the second quarter?
b. What is the company’s absorption costing net operating income (loss) for the second quarter?
c. Reconcile the variable costing and absorption costing net operating incomes for the second quarter.
In: Accounting
Tami Tyler opened Tami’s Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler’s personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University.
|
Tami’s Creations, Inc. Income Statement For the Quarter Ended March 31 |
||||||
| Sales (28,500 units) | $ | 1,140,000 | ||||
| Variable expenses: | ||||||
| Variable cost of goods sold | $ | 427,500 | ||||
| Variable selling and administrative | 196,650 | 624,150 | ||||
| Contribution margin | 515,850 | |||||
| Fixed expenses: | ||||||
| Fixed manufacturing overhead | 283,500 | |||||
| Fixed selling and administrative | 245,850 | 529,350 | ||||
| Net operating loss | $ | ( 13,500) | ||||
Ms. Tyler is discouraged over the loss shown for the quarter, particularly because she had planned to use the statement as support for a bank loan. Another friend, a CPA, insists that the company should be using absorption costing rather than variable costing and argues that if absorption costing had been used the company probably would have reported at least some profit for the quarter.
At this point, Ms. Tyler is manufacturing only one product—a swimsuit. Production and cost data relating to the swimsuit for the first quarter follow:
| Units produced | 31,500 | |||
| Units sold | 28,500 | |||
| Variable costs per unit: | ||||
| Direct materials | $ | 7.20 | ||
| Direct labor | $ | 6.10 | ||
| Variable manufacturing overhead | $ | 1.70 | ||
| Variable selling and administrative | $ | 6.90 | ||
Required:
1. Complete the following:
a. Compute the unit product cost under absorption costing.
b. What is the company’s absorption costing net operating income (loss) for the quarter?
c. Reconcile the variable and absorption costing net operating income (loss) figures.
3. During the second quarter of operations, the company again produced 31,500 units but sold 34,500 units. (Assume no change in total fixed costs.)
a. What is the company’s variable costing net operating income (loss) for the second quarter?
b. What is the company’s absorption costing net operating income (loss) for the second quarter?
c. Reconcile the variable costing and absorption costing net operating incomes for the second quarter.
In: Accounting
Tami Tyler opened Tami’s Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler’s personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University.
|
Tami’s Creations, Inc. Income Statement For the Quarter Ended March 31 |
||||||
| Sales (28,200 units) | $ | 1,128,000 | ||||
| Variable expenses: | ||||||
| Variable cost of goods sold | $ | 468,120 | ||||
| Variable selling and administrative | 193,170 | 661,290 | ||||
| Contribution margin | 466,710 | |||||
| Fixed expenses: | ||||||
| Fixed manufacturing overhead | 265,600 | |||||
| Fixed selling and administrative | 221,110 | 486,710 | ||||
| Net operating loss | $ | ( 20,000) | ||||
Ms. Tyler is discouraged over the loss shown for the quarter, particularly because she had planned to use the statement as support for a bank loan. Another friend, a CPA, insists that the company should be using absorption costing rather than variable costing and argues that if absorption costing had been used the company probably would have reported at least some profit for the quarter.
At this point, Ms. Tyler is manufacturing only one product—a swimsuit. Production and cost data relating to the swimsuit for the first quarter follow:
| Units produced | 33,200 | |||
| Units sold | 28,200 | |||
| Variable costs per unit: | ||||
| Direct materials | $ | 7.30 | ||
| Direct labor | $ | 7.40 | ||
| Variable manufacturing overhead | $ | 1.90 | ||
| Variable selling and administrative | $ | 6.85 | ||
Required:
1. Complete the following:
a. Compute the unit product cost under absorption costing.
b. What is the company’s absorption costing net operating income (loss) for the quarter?
c. Reconcile the variable and absorption costing net operating income (loss) figures.
3. During the second quarter of operations, the company again produced 33,200 units but sold 38,200 units. (Assume no change in total fixed costs.)
a. What is the company’s variable costing net operating income (loss) for the second quarter?
b. What is the company’s absorption costing net operating income (loss) for the second quarter?
c. Reconcile the variable costing and absorption costing net operating incomes for the second quarter.
In: Accounting
Tami Tyler opened Tami’s Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler’s personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University.
|
Tami’s Creations, Inc. Income Statement For the Quarter Ended March 31 |
||||||
| Sales (28,250 units) | $ | 1,130,000 | ||||
| Variable expenses: | ||||||
| Variable cost of goods sold | $ | 446,350 | ||||
| Variable selling and administrative | 193,512 | 639,862 | ||||
| Contribution margin | 490,138 | |||||
| Fixed expenses: | ||||||
| Fixed manufacturing overhead | 329,175 | |||||
| Fixed selling and administrative | 185,712 | 514,888 | ||||
| Net operating loss | $ | ( 24,750) | ||||
Ms. Tyler is discouraged over the loss shown for the quarter, particularly because she had planned to use the statement as support for a bank loan. Another friend, a CPA, insists that the company should be using absorption costing rather than variable costing and argues that if absorption costing had been used the company probably would have reported at least some profit for the quarter.
At this point, Ms. Tyler is manufacturing only one product—a swimsuit. Production and cost data relating to the swimsuit for the first quarter follow:
| Units produced | 33,250 | |||
| Units sold | 28,250 | |||
| Variable costs per unit: | ||||
| Direct materials | $ | 7.50 | ||
| Direct labor | $ | 6.70 | ||
| Variable manufacturing overhead | $ | 1.60 | ||
| Variable selling and administrative | $ | 6.85 | ||
Required:
1. Complete the following:
a. Compute the unit product cost under absorption costing.
b. What is the company’s absorption costing net operating income (loss) for the quarter?
c. Reconcile the variable and absorption costing net operating income (loss) figures.
3. During the second quarter of operations, the company again produced 33,250 units but sold 38,250 units. (Assume no change in total fixed costs.)
a. What is the company’s variable costing net operating income (loss) for the second quarter?
b. What is the company’s absorption costing net operating income (loss) for the second quarter?
c. Reconcile the variable costing and absorption costing net operating incomes for the second quarter.
In: Accounting
Tami Tyler opened Tami’s Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler’s personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University.
|
Tami’s Creations, Inc. Income Statement For the Quarter Ended March 31 |
||||||
| Sales (28,100 units) | $ | 1,124,000 | ||||
| Variable expenses: | ||||||
| Variable cost of goods sold | $ | 458,030 | ||||
| Variable selling and administrative | 192,485 | 650,515 | ||||
| Contribution margin | 473,485 | |||||
| Fixed expenses: | ||||||
| Fixed manufacturing overhead | 267,460 | |||||
| Fixed selling and administrative | 218,925 | 486,385 | ||||
| Net operating loss | $ | ( 12,900) | ||||
Ms. Tyler is discouraged over the loss shown for the quarter, particularly because she had planned to use the statement as support for a bank loan. Another friend, a CPA, insists that the company should be using absorption costing rather than variable costing and argues that if absorption costing had been used the company probably would have reported at least some profit for the quarter.
At this point, Ms. Tyler is manufacturing only one product—a swimsuit. Production and cost data relating to the swimsuit for the first quarter follow:
| Units produced | 31,100 | |||
| Units sold | 28,100 | |||
| Variable costs per unit: | ||||
| Direct materials | $ | 7.40 | ||
| Direct labor | $ | 7.00 | ||
| Variable manufacturing overhead | $ | 1.90 | ||
| Variable selling and administrative | $ | 6.85 | ||
Required:
1. Complete the following:
a. Compute the unit product cost under absorption costing.
b. What is the company’s absorption costing net operating income (loss) for the quarter?
c. Reconcile the variable and absorption costing net operating income (loss) figures.
3. During the second quarter of operations, the company again produced 31,100 units but sold 34,100 units. (Assume no change in total fixed costs.)
a. What is the company’s variable costing net operating income (loss) for the second quarter?
b. What is the company’s absorption costing net operating income (loss) for the second quarter?
c. Reconcile the variable costing and absorption costing net operating incomes for the second quarter.
In: Accounting
Tami Tyler opened Tami’s Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler’s personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University.
|
Tami’s Creations, Inc. Income Statement For the Quarter Ended March 31 |
||||||
| Sales (28,050 units) | $ | 1,122,000 | ||||
| Variable expenses: | ||||||
| Variable cost of goods sold | $ | 426,360 | ||||
| Variable selling and administrative | 196,350 | 622,710 | ||||
| Contribution margin | 499,290 | |||||
| Fixed expenses: | ||||||
| Fixed manufacturing overhead | 264,400 | |||||
| Fixed selling and administrative | 254,890 | 519,290 | ||||
| Net operating loss | $ | ( 20,000) | ||||
Ms. Tyler is discouraged over the loss shown for the quarter, particularly because she had planned to use the statement as support for a bank loan. Another friend, a CPA, insists that the company should be using absorption costing rather than variable costing and argues that if absorption costing had been used the company probably would have reported at least some profit for the quarter.
At this point, Ms. Tyler is manufacturing only one product—a swimsuit. Production and cost data relating to the swimsuit for the first quarter follow:
| Units produced | 33,050 | ||
| Units sold | 28,050 | ||
| Variable costs per unit: | |||
| Direct materials | $ | 7.50 | |
| Direct labor | $ | 5.90 | |
| Variable manufacturing overhead | $ | 1.80 | |
| Variable selling and administrative | $ | 7.00 | |
Required:
1. Complete the following:
a. Compute the unit product cost under absorption costing.
b. What is the company’s absorption costing net operating income (loss) for the quarter?
c. Reconcile the variable and absorption costing net operating income (loss) figures.
3. During the second quarter of operations, the company again produced 33,050 units but sold 38,050 units. (Assume no change in total fixed costs.)
a. What is the company’s variable costing net operating income (loss) for the second quarter?
b. What is the company’s absorption costing net operating income (loss) for the second quarter?
c. Reconcile the variable costing and absorption costing net operating incomes for the second quarter.
In: Accounting
Tami Tyler opened Tami’s Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler’s personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University.
|
Tami’s Creations, Inc. Income Statement For the Quarter Ended March 31 |
||||||
| Sales (28,350 units) | $ | 1,134,000 | ||||
| Variable expenses: | ||||||
| Variable cost of goods sold | $ | 473,445 | ||||
| Variable selling and administrative | 192,780 | 666,225 | ||||
| Contribution margin | 467,775 | |||||
| Fixed expenses: | ||||||
| Fixed manufacturing overhead | 266,800 | |||||
| Fixed selling and administrative | 220,975 | 487,775 | ||||
| Net operating loss | $ | ( 20,000) | ||||
Ms. Tyler is discouraged over the loss shown for the quarter, particularly because she had planned to use the statement as support for a bank loan. Another friend, a CPA, insists that the company should be using absorption costing rather than variable costing and argues that if absorption costing had been used the company probably would have reported at least some profit for the quarter.
At this point, Ms. Tyler is manufacturing only one product—a swimsuit. Production and cost data relating to the swimsuit for the first quarter follow:
| Units produced | 33,350 | |||
| Units sold | 28,350 | |||
| Variable costs per unit: | ||||
| Direct materials | $ | 7.60 | ||
| Direct labor | $ | 7.30 | ||
| Variable manufacturing overhead | $ | 1.80 | ||
| Variable selling and administrative | $ | 6.80 | ||
Required:
1. Complete the following:
a. Compute the unit product cost under absorption costing.
b. What is the company’s absorption costing net operating income (loss) for the quarter?
c. Reconcile the variable and absorption costing net operating income (loss) figures.
3. During the second quarter of operations, the company again produced 33,350 units but sold 38,350 units. (Assume no change in total fixed costs.)
a. What is the company’s variable costing net operating income (loss) for the second quarter?
b. What is the company’s absorption costing net operating income (loss) for the second quarter?
c. Reconcile the variable costing and absorption costing net operating incomes for the second quarter.
In: Accounting
You work for a California textbook company. Henry is auctioning off the rights to his online textbooks sales in Switzerland, which are expected to bring in the following EUR cash flows over the next three years:
Year 1 Year 2 Year 3
EUR Cash Flows 1,000 1,100 1,200
To prepare your bid, you need to calculate the net present value (NPV) of these cash flows in USD terms. You believe that relative PPP is a reasonable tool to use.
The spot exchange rate is 1.20 USD per EUR. Expected US inflation is 2%, and expected inflation in Switzerland is 1%. Your USD discount rate is 9%.
The NPV of these cash flows in USD is: ????
You have a Brazilian partner, who ask for your estimates of the net present value of the EUR cash flows in Brazilian real (BRL) terms.
He asks you to convert the cash flows into BRL (using relative PPP), and to use a BRL discount rate of 25%.
The spot exchange rate is 4 BRL per USD. Expected BRL inflation is 12%. All other information is the same as above.
The NPV of these cash flows in BRL terms is: ????
In: Finance
a. bonus
b. commissions
c. merit pay
d. piecework
e. standard hour
f. nonmonetary awards
g. praise
____ 11. I’m an auto mechanic at a dealership, and we have a set amount of time to complete each type of repair work. I complete a job before a stated time so that I can go on to the next car and get paid extra for being faster than the average guy.
____ 12. I just sold that top-of-the-line BMW M3. I can’t wait to get my pay this week.
____ 13. I’m the top producer in the entire department, so I will get an extra raise for high performance this year.
____ 14. The boss had me come to the front of the room at the annual meeting to get a plaque for 5 years of service to the company. She listed some of my major accomplishments.
____ 15. The boss just thanked me for getting a shipment that was behind schedule out on time
a. base pay
b. wage and salary add-ons
c. incentive pay
d. benefits
____ 1. I’d like to work for a firm that will help pay for me to get my master’s of business administration (MBA) degree.
____ 2. I get paid only $11 an hour, so I’m looking for a better job.
____ 3. I like getting paid the same each week. It helps me to budget my expenses.
____ 4. I like being paid for every sale I make, but my pay does vary from week to week.
____ 5. I like working nights because it pays more.
In: Operations Management
The following is a quote from The Economist (Dec. 3, 2016):
“The dollar has been gradually gaining strength for years. But the prompt for this latest surge is the prospect of a shift in the economic-policy mix in America. The weight of investors’ money has bet that Mr. Trump will cut taxes and spend more public funds on fixing America’s crumbling infrastructure. A big fiscal boost would lead the Federal Reserve to raise interest rates at a faster rate to check inflation. America’s ten-year bond yield has risen to 2.3%, from almost 1.7% on election night. Higher yields are a magnet for capital flows.”
There has also been Fed attempts to raise interest rates recently.
EXPLAIN IN A PARAGRAPH: Will higher US interest rates strengthen the USD? Agree or disagree. Explain fully. Also, will the resulting change in the USD (from your analysis) be consistent with President Trump’s overall economic perspective on trade and US manufacturing.
Please address these questions from a Jan. 1, 2017 perspective for that time period.
In: Finance