Gg Toys Case Solution

2 Reduced waste: With improved systems there would be reduction in waste and fewer defects in the products. This will help in adding to the profits. Logistical improvements will help in better organisation of physical space required and viable transportation and reduction in the waiting times for the materials required, thus giving lesser room for wasting time.

Management should note that the level of activity was above what had been planned for the month. This led to an expected increase in profits of $1,100. However, the individual items on the report should not receive much management attention. The favorable variance for revenue and the unfavorable variances for expenses are entirely caused by the increase in activity.

On the morning of January 17, 1993, before the annual buying trip to Germany for the 1993 Christmas season, the toy buyer for the chain of Hightower Department Stores named Julia Brown was reviewing the performance of some models of stuffed animals tested for sales during 1992. Every time Julia’s on the trip, she would buy some stuffed animals for testing. Fifty was the minimum amount the manufacturers require. Based on Julia’s years of buying experience, the tested result would give Julia a clear estimation about how many new stuffed animals she needed to order. Figure 1 in below shows the timeline of how Julia buys the toys for the company:

On the contrary, when the situation is good, we assume that discount rate=7.7%. The result will be changed.

Wilkerson employs a Normal Cost System, which means that they use predetermined overhead rates along with actual costs for direct material and direct labor. Normal costing systems are appropriate when overhead costs are a relatively small percentage of total manufacturing costs and product diversity is limited. For Wilkerson, normal costing does not make sense. Overhead costs make up over 50 percent of total manufacturing costs and their product offering is relatively more diverse. This indicates that the current accounting system in place may be distorting costs significantly. Supporting data:

Additionally, research and development expense incurred in the development of new products or significant improvements to existing products was $5.1 million in 1984. $12.1 million in 1983 and $14.1 million in 1982. This change affected the company’s report profits by 7 million from 1984 to 1983 and by 9 million from 1984 to 1982.

This is the main issue. That is why it would be ideal for the Chicago plant to utilize the Activity-Based Costing system. smasher costs are high especially with multiple machines travel rapidly simultaneously. This in addition includes the setup for the modifications of dolls as well (switching from boy to little girl doll). Production run and packaging all required the aforementioned(prenominal) amount of time and work regardless of production aloofness and number of items in the shipment. If the Chicago plant switched to the activity- base cost system, G.G. Toys stop use a method of assigning costs to products or services based on the resources that the plant consumes. Rather than screw up materials and resources.

Promote bulk orders among the small customers so that effective price/cup for small customers can be brought down.

23) Hug Me Company produces dolls. Each doll sells for $20.00. Variable costs per unit total $14.00, of which $6.25 is for direct materials and $5.25 is for direct labor. If total fixed costs are $435,000, then the break even volume in dollars is _____.

[pic]s a senior in a professional services firm, you have been assigned to plan the financial statement audit of a private company named Toy Central Corporation (TCC). In addition, the partner on the engagement has asked you to identify business risks that could adversely affect TCC’s sustained profitability, so that they can be brought to the attention of the company’s board of directors. These tasks will require you to draw on your knowledge of supply chain management, marketing, internal controls, audit assertions, and financial accounting.

Using the cost study conclusions, the actual unit cost for the Geoffrey doll is $15.21. The actual unit cost for specialty-branded doll #106 is $35.10 and the actual unit cost for the cradles is $23.72.

Founded in the year 1949, the United Federation of Doll Clubs has been dedicated to the promotion of the hobby of doll collecting and serving the needs of doll collectors. Offering an in-depth study of dolls, here visitors can view antique, vintage, modern, play and artist dolls on display. Apart from its doll collections, the museum also has a permanent archival collection of catalogs, research materials, patent papers, patterns and other ephemera relating to dolls and doll reference library. Local residents can benefit by being a member of the museum and enjoy doll shows, luncheons and other events that the club sponsors. Furthermore, special doll workshops and events are organized on a regular

Many collectors start building collections of dolls as way of reminiscing into their childhood. Collectors need to figure out what type of dolls they want to add to their collections, which may greatly depend on the type of material they are made from. Once the collector has decided on the type of doll they want to collect then they may want to purchase merchandise for their dolls as well to add to their collections. However, most collectors do prefer the more modern and vintage style dolls or the classic and antique dolls. There are a variety of dolls for any collector to base their collections upon, with each containing distinct features that are sure to please any collector.

Based on the preceding projections and budget requirements for Thingone and Thingtwo, prepare the following budgets for 2014:

reused or used some of materials that can be suitable for cheaper and good production for the new toys