The production of Job ACE went much better than planned. In fact, there was a fair amount of good, usable material left over. Doroth the production manager, pulled $40 of material from inventory, but used just $29 of material, along with $35 of DL and $12 of MOH. Dorothy believes the material should be put back into circulation, as it could be usable on a different job in the future. If the scrap material is put back into inventory, what is the journal entry to record the completion of Job ACE and the reclassification of material i the company uses the production method to account for scrap? (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for th amounts. List all debit entries before credit entries.) Account Titles and Explanation RM Inventory Debit Credit
Q: llows for Xpert's purchases and sales of the ultra-lightweight snowboard in October: Transaction…
A: Under FIFO method using perpetual inventory system, Value of ending inventory and Cost of goods sold…
Q: Skysong Golf Inc. was formed on July 1, 2024, when Matt Magilke purchased the Old Master Golf…
A: As per IFRS/IAS 38 Intangible asset, is an asset which doesn't have physical existence. It includes…
Q: On January 1, 2024, the Mason Manufacturing Company began construction of a building to be used as…
A: The specific interest method is an approach used in accounting for certain types of financial…
Q: (Algo) Assume that a company provided... Assume that a company provided the following statement of…
A: The cash flow statement is prepared to record the cash flow from various activities during the…
Q: the purchase for tax purpo 6. Derek purchases a small business from Art on August 30, 2022. He paid…
A: An identifiable non-financial asset with no physical components is referred to as an intangible…
Q: Pharoah Company has the following two notes receivable at May 31, 2024, its fiscal year end: 1. 2.…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: A company is considering a $168,000 investment in machinery with the following net cash flows. The…
A: Net present value is technique used to evaluate capital budgeting projects. Net present value is…
Q: Baratie Restaurant Worksheet For the period ended December 31, 2022 Accounts Cash Supplies Inventory…
A: 10- Column Worksheet:A 10-column worksheet plays a crucial role in accounting and financial…
Q: Kohler Corporation reports the following components of stockholders' equity at December 31 of the…
A: The dividend is declared to the shareholders from the retained earnings of the business. The…
Q: Logistics Solutions provides order fulfillment services for dot.com merchants. The company maintains…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Juniper Design Limited of Manchester, England, is a company specializing in providing design…
A: Residual Income :— It is the amount of income that an entity receives in excess of its opportunity…
Q: ed the following items in its year-end financial statements: ditures ayments baid 3 ayments…
A: When indirect method is applied for calcuating cash flow from operating activities, a supplement…
Q: Assume Hairy-Cairy Salon, a hair styling salon in Matthews, NC, provides cuts, perms, and…
A: The objective of the question is to calculate the margin of safety in sales dollars for Hairy-Cairy…
Q: Electricity used to heat, light, and cool a factory Cleaning supplies used in an automobile…
A: Fixed cost with respect to volume of activity is the cost that remains constant irrespective of the…
Q: The Puyer Corporation makes and sells only one product called a Deb. The company is in the process…
A: VARIABLE COST Variable Cost is a cost that varies with the level of output.Variable costs include…
Q: Calculate the amount of warranty expense that should have been recognized in 2023
A: Warranty expenses are the charges that a firm expects to pay in order to meet its responsibilities…
Q: Consider the following information from a company's records for 2020: Materials used in research and…
A: R&D expenses are typically accounted for on a company's income statement. They are considered…
Q: onrad Inc. purchased a patent for $2,900,000 for "a specialty line of patented switch plate covers…
A: Patents can be of many types: plant, utility (for new and beneficial innovations or discoveries),…
Q: Kathy is 48 years of age and self-employed. During 2023 she reported $120,000 of revenues and…
A: A simplified employee pension (SEP) is an employee retirement fund (IRA) that may be established by…
Q: 23. LO.5 Jayda maintains an office in her home that comprises 8% (200 square feet) of total floor…
A: The Regular Method:This approach involves identifying and calculating the actual expenses associated…
Q: The following financial information was summarized from the accounting records of Train Corporation…
A: Income from Operations:This amount is derived with the help of the Multi-Step Income Statement. In a…
Q: Balloons By Sunset (BBS) is considering the purchase of two new hot air balloons so that it can…
A: Average Annual Income$32,800Initial investment $410,000Average accounting rate of return ($29,232 /…
Q: Calculate the amount of any temporary differences for 2023. Temporary differences GA 56,000
A: Temporary differences in accounting arise from divergent timings between recognizing revenues,…
Q: Balance 4/11 Direct materials Direct labor Overhead Balance 4/11 Transferred in Direct labor…
A: Process Costing: Process costing is method of cost accounting in which all the costs that are…
Q: Here are selected 2027 transactions of Swifty Corporation. Jan. 1 June 30 Dec. 31 Retired a piece of…
A: It is the amount of reduction in the value of a tangible fixed asset due to tear and wear,…
Q: First, prepare the entries for Zane Drug Stores. July 6: Zane purchased $74,000 of merchandise from…
A: The journal entries are prepared to record the transactions on a regular basis. The freight in…
Q: Martinez Limited reported profit of $419,550 for its November 30, 2024, year end. Cash dividends of…
A: According to the question, we need to determine the weighted average number of shares outstanding at…
Q: 2006 Units produced Per unit sales volue at split-off Added processing costs per unit Per unit sales…
A: A product can be sold either at the time of split or can be processed further after incurring…
Q: A company currently produces three products from a joint process. The joint process has total costs…
A: Lets understand the basics.When management having a option of sale or proceed further than…
Q: The Kenton Company processes unprocessed milk to produce two products, Butter Cream and Condensed…
A: Joint Cost :— It is the total cost incurred jointly in the manufacturing of two or more joint…
Q: Oriole Snowboarding Company, a public company, purchased equipment on January 10, 2020, for…
A: All the tangible properties are subject to testing for impairment at least once a year. When the…
Q: Eagle Company, a public company, had a computer failure and lost part of its financial data As a…
A: The scenario involves Eagle Company, a public company, experiencing a computer failure that resulted…
Q: View Policies Current Attempt in Progress Pharoah Company purchased a delivery truck for $49,000 on…
A: Depreciation: It refers to the gradual or usual decrease / fall in the total value of a fixed asset…
Q: Repeat part (a) assuming the investments are accounted for using FV-OCI without recycling. Concord's…
A: The method of accounting of the investments which are to be recorded as per fair value through other…
Q: On January 1, 2024, the Mason Manufacturing Company began construction of a building to be used as…
A: Interest capitalized is based on Weighted Average Accumulated Expenditures and capitalization rate…
Q: Jaded Corporation has the following account balances for the year-ended December 31, 2024. K In…
A: INCOME STATEMENTIncome Statement is one of the Important Financial Statement of the Company. Income…
Q: For financial reporting, Kumas Poultry Farms has used the declining-balance method of depreciation…
A: The objective of the question is to prepare the journal entry for the year 2024 related to the…
Q: Sandhill Company expects to produce 54,000 units of product XLA during the current year. Budgeted…
A: A flexible budget is prepared on the basis of the budgeted rate and on the basis of different…
Q: Sandhill Roofing is faced with a decision. The company relies very heavily on the use of its 60-foot…
A: Incremental Cost is the cost incurred for the production of additional units of products. Variable…
Q: feteria 50% utting 10% sembly 40% artment Percentage nitorial 20% utting 60% sembly 20% torial…
A: Lets understand the basics.Service department costs can be allocated using either,(1) Direct…
Q: Janco Industries has a relevant range extending to 30,200 units each month. The following…
A: The flexible budget performance report is prepared by comparing the actual revenue and costs with…
Q: The manufacturing overhead budget for Bramble Company contains the following items. Variable costs…
A: Total cost is the amount of cost incurred by the entity on the making and selling of the goods. It…
Q: On July 1, 2014, Sunland Enterprises sold equipment with an original cost of $80,700 for $31.300.…
A: Depreciation is charged against the value of fixed assets. It can be calculated by using the…
Q: I. II. PREPARE ALL THE ADJUSTING ENTRIES SHOWING THE DETAILED COMPUTATIONS. PREPARE THE WORKING…
A: A worksheet refers to a horizontal statement model that lists all the elements of trial balance,…
Q: 12 2012 Required information [The following information applies to the questions displayed below]…
A: WEIGHTED AVERAGE METHOD :— Under this method, equivalent units are calculated by adding equivalent…
Q: In 2022, a taxpayer has self-employment earnings of $201,000. Required: Compute the taxpayer’s…
A: The objective of this question is to calculate the self-employment tax liability and the allowable…
Q: 17) Meyer & smith is a full-service company. They provide equipment, installation services as well…
A: The Revenue recognition is a process of five step model to recognise revenu as fallowsThese five…
Q: Assume a company had net income of $65,000 that included a gain on the sale of equipment of $4,000.…
A: Net cash provided by operating activities can be found on the statement of cash flows which shows…
Q: TB MC Qu. 18-105 (Algo) The amount of nontraceable cost to be allocated to the Harborview Resort…
A: The objective of the question is to determine the amount of nontraceable cost to be allocated to the…
Q: Product Pricing using the Cost-Plus Approach Methods; Differential Analysis for Accepting Additional…
A: Absorption costing is a costing mechanism where all the costs related to the production are assigned…
Dengar
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Danielle Hastings was recently hired as a cost analyst by CareNet Medical Supplies Inc. One of Danielle’s first assignments was to perform a net present value analysis for a new warehouse. Danielle performed the analysis and calculated a present value index of 0.75. The plant manager, Jerrod Moore, is very intent on purchasing the warehouse because he believes that more storage space is needed. Jerrod asks Danielle into his office and the following conversation takes place: Jerrod: Danielle, you’re new here, aren’t you? Danielle: Yes, I am. Jerrod: Well, Danielle, I’m not at all pleased with the capital investment analysis that you performed on this new warehouse. I need that warehouse for my production. If I don’t get it, where am I going to place our output? Danielle: Well, we need to get product into our customers’ hands. Jerrod: I agree, and we need a warehouse to do that. Danielle: My analysis does not support constructing a new warehouse. The numbers don’t lie; the warehouse does…Jackie Iverson was furious. She was about ready to fire Tom Rich, her purchasing agent. Just a month ago, she had given him a salary increase and a bonus for his performance. She had been especially pleased with his ability to meet or beat the price standards. But now, she found out that it was because of a huge purchase of raw materials. It would take months to use that inventory, and there was hardly space to store it. In the meantime, space had to be found for the other materials supplies that would be ordered and processed on a regular basis. Additionally, it was a lot of capital to tie up in inventorymoney that could have been used to help finance the cash needs of the new product just coming online. Her interview with Tom was frustrating. He was defensive, arguing that he thought she wanted those standards met and that the means were not that important. He also pointed out that quantity purchases were the only way to meet the price standards. Otherwise, an unfavorable variance would have been realized. Required: 1. CONCEPTUAL CONNECTION Why did Tom Rich purchase the large quantity of raw materials? Do you think that this behavior was the objective of the price standard? If not, what is the objective(s)? 2. CONCEPTUAL CONNECTION Suppose that Tom is right and that the only way to meet the price standards is through the use of quantity discounts. Also, assume that using quantity discounts is not a desirable practice for this company. What would you do to solve this dilemma? 3. CONCEPTUAL CONNECTION Should Tom be fired? Explain.Barbara, the manager of Metlock, is analyzing the company's MOH costs from last year. Metlock had always followed an actual costing system when determining the costs of its customizable telescopes. Barbara wondered if it would be better to switch to a normal costing system, as she had heard a number of people talking about that at an industry conference she attended the previous month. Since Metlock has a highly machine-intensive operation, machine hours are used as its MOH cost driver. Here are the costs and other MOH information Barbara is analyzing: Budgeted MOH cost Actual MOH cost Budgeted machine hours Actual machine hours $426,240 Actual MOH rate $ 419,040 Determine the actual MOH rate and the budgeted MOH rate Metlock would have used last year under actual costing and normal costing, respectively. (Round answers to 2 decimal places, e.g. 52.75.) Budgeted MOH rate $ 96,000 108,000 /machine hour /machine hour
- Muscat Tubes Manufacturing LLC is a manufacturer of television picture tubes. The company must keep various types of materials on hand for the manufacturing process. The store manager is having difficulty keeping track of all the inventory. When compared to last year, the amount of material lost has increased, which is a source of concern for the store manager. He wishes to employ an effective tool for controlling material loss. While exploring, he came across the concept of ABC analysis, which is used by many MNCs around the world. Because he has no background in costing, he is unable to grasp the concept. He asked you to explain the following because you are the company's cost accounting executive: Working/Application of ABC analysis?As a cost accountant for San Francisco Cannery, you have been approached by Phil Perriman, canning room supervisor, about the 2020 costs charged to his department. In particular, he is concerned about the line item “depreciation.” Perriman is very proud of the excellent condition of his canning room equipment. He has always been vigilant about keeping all equipment serviced and well oiled. He is sure that the huge charge to depreciation is a mistake; it does not at all reflect the cost of minimal wear and tear that the machines have experienced over the last year. He believes that the charge should be considerably lower. The machines being depreciated are six automatic canning machines. All were put into use on January 1, 2020. Each cost $625,000, having a salvage value of $55,000 and a useful life of 12 years. San Francisco depreciates this and similar assets using double-declining-balance depreciation. Perriman has also pointed out that if you used straight-line depreciation, the…Company B produces custom framing. For this job, the dimensions of the picture weresuch that the computer-controlled, mat-cutting device could not be used. Company Bwarned the customer that this was a particularly difficult job, and its normal price wouldbe increased to reflect its difficulty. Company B cut the mat by hand, but the cut was notas straight as it should have been. So the first mat was thrown and cut another one. Howis the cost of the spoiled mat handled?
- Suppose further that Snappy decides to make changes in its ordering and receiving-and-storing practices. By placing long-run orders with its key suppliers, Snappy expects to reduce the number of orders to 200 and the cost per order to $25 per order. By redesigning the layout of the warehouse and reconfiguring the crates in which the marble tiles are moved, Snappy expects to reduce the number of loads moved to 3,125 and the cost per load moved to $28. Will Snappy achieve its target operating income of $0.30 per tile in 2017? Show your calculations.Lisa is a contractor, and she owns a small home renovation company that specializes in kitchen renovations. Lisa fears she has been underbidding her projects, and that translates into lost profits that could help sustain her through slow periods. She is putting together an estimate for a potential client and has determined the following activities: Activity Cost Driver Rate Estimated Use for Job Demo of Existing Space Square Footage $3.26 /square foot 520 square feet Cabinet Installation # of Hours $205 /hour 8 hours Countertop Installation Square Footage $12.00/square foot 280 square feet Previously, Lisa was billing at a flat rate of $16 per square foot of the demo space with no additional markup. Lisa would like to add a 20% markup to the cost to arrive at the final bid price. Using Activity-Based Costing (ABC), what is the final bid price for her potential customer? (Round intermediate calculations and final answer to 2 decimal places, eg. 25,000.25.) Final bid price $Fusion Metals Company is considering the elimination of its Packaging Department. Management has received an offer from an outside firm to supply all Fusion’s packaging needs. To help her in making the decision, Fusion’s president has asked the controller for an analysis of the cost of running Fusion’s Packaging Department. Included in that analysis is $9,100 of rent, which represents the Packaging Department’s allocation of the rent on Fusion’s factory building. If the Packaging Department is eliminated,the space it used will be converted to storage space. Currently Fusion rents storage space in a nearby warehouse for $11,000 per year. The warehouse rental would no longer be necessary if the Packaging Department were eliminated. Required:1. Discuss each of the figures given in the exercise with regard to its relevance in the departmentclosing decision.2. What type of cost is the $11,000 warehouse rental, from the viewpoint of the costs of the Packaging Department?
- A company currently using an inspection process in its material receiving department is trying to install an overall cost reduction program. One possible reduction is the elimination of one inspection position. This position tests material that has defective content on an average of 0.04. By inspecting all items, the inspector is able to remove all defects. The inspector can inspect 50 units per hour. The hourly rate including fringe benefits for this position is $9. If the inspection position is eliminated, defects will go into the product assembly and will have to be replaced later at a cost of $10 each when they are detected in final product testing. (Answer in Appendix D)a. Should this inspection position be eliminated?b. What is the cost to inspect each unit?c. Is there a benefit (or loss) from the current inspection process? How much?"Blast it!" said Amy Wilson, president of a custom furniture design company, Wilson Woodworking. "We've just lost the bid on the Kooper's cabinet by $2,000. It seems we're either too high to get the job or too low to make any money on the jobs we bid. I just don't understand what we are doing wrong!" Wilson Woodworking manufactures cabinets to customers' specifications and uses a job-order costing system. The company uses a plantwide predetermined overhead rate based on direct labor cost to apply its manufacturing overhead (assumed to be all fixed) to jobs. The following estimates were made at the beginning of the year: Manufacturing overhead Direct labor Jobs require varying amounts of work in the three departments. The Kooper's cabinet job, for example, would have required manufacturing costs in the three departments as follows: Direct materials Direct labor Manufacturing overhead Direct materials. Direct labor Manufacturing overhead Department Fabricating Machining Assembly Total…Carol Creedence, the plant manager of the Clearwater Company’s Revival plant, has prepared the following graph of the unit costs from the job cost reports for the plant’s highest volume product, Product CCR: Attachment Carol is concerned about the erratic and increasing cost of Product CCR and has asked for your help. Prepare a half-page memo to Carol, interpreting this graph and requesting any additional information that might be needed to explain this situation.