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Accounting: Sell or process further?

Missouri Company mines an iron ore called Alpha. During the month of August, 350,000 tons of Alpha were mined and processed at a cost of $675,000. As the Alpha ore is mined, it is processed into Delta and Pi, where 60% of the Alpha output becomes Delta and 40% becomes Pi. Each product can be sold as is or processed into the refi

Statistics: Difference in Waiting Times

There are four auto body shops in a community and all claim to promptly serve customers. To check if there is any difference in service, customers are randomly selected from each repair shop and their waiting times in days are recorded. The output from a statistical software package is: Summary Groups Count Sum Average Varianc

Managerial Accounting - Margins

7. The following information relates to Snowbird Corporation: What is Snowbird's margin of safety? A) $62,500 B) $187,500 C) $100,000 D) $212,500 8. Carver Company produces a product which sells for $40. Variable manufacturing costs are $18 per unit. Fixed manufacturing costs are $5 per unit based on the current l

Common Stocks

28. A firm pays a $1.90 dividend at the end of year one (D1), has a stock price of $40 (P0), and a constant growth rate (g) of 8 percent. a. Compute the required rate of return (Ke). Also indicate whether each of the following changes would make the required rate of return (Ke go up or down. (For parts b, c, and d below, as

Choate and Choate (Identifying Controls for a System)

Choate and Choate (Identifying Controls for a System) Choate and Choate is an advertising agency that employs 625 salespersons, who travel and entertain extensively. Each month, salespersons are paid both salary and commissions. The nature of their jobs is such that expenses of several hundred dollars a day might be incurr

Managerial Accounting

Abbitt Company, which has only one product, has provided the following data concerning its most recent month of operations: 19. What is the unit product cost for the month under variable costing? A) $80 B) $119 C) $113 D) $86 20. What is the unit product cost for the month under absorption costing? A) $

Managerial Accounting Problem

The following overhead data are for a department in a large company. Actual costs incurred Static budget Activity level (in units) 420 420 Vari

Managerial Accounting for Anders Inc.

Anders Inc. uses the weighted-average method in its process costing system. The following data concern the operations of the company's first processing department for a recent month. Work in process, beginning: Units in process 800 Stage of completion with respect to materials 70% Stage of completion with respect to conv

Compute new operating income for each year under the variable cost approach

(See attached file for full problem description) (TCO E) The Hadfield Company was organized on January 1, 2001, to manufacture and sell a unique electronic part. The company's plant is highly automated with low variable and high fixed manufacturing costs. Operating results for the first three years of activity were as follow

Mr. Earl Pearl, Accountant

4. (TCO D) Mr. Earl Pearl, Accountant for Margie Knall, Inc. has prepared the following product-line income data: PRODUCT Total A B

Bulan Inc.

3. (TCO D) Bulan Inc. makes a range of products. The company's predetermined overhead rate is $20 per direct labor-hour, which was calculated using the following budgeted data: Variable manufacturing overhead................. $140,000 Fixed manufacturing overhead..................... $560,000 Direct labor-hours......

Main Company

Main Company uses a standard cost system in which it applies manufacturing overhead to its product on the basis of standard direct labor-hours (DLHs). Below is the standard cost card for the product: Direct materials, 5 feet at $4.00 per foot......................... $20.00 Direct labor, 2.0 DLHs at $10.00 per

Production Cost and Supply Chain

(TCO B) Evergreen Corp. has provided the following data: Sales per period 1,000 units Selling price $40 per unit Variable manufacturing cost $12 per unit Selling expenses $5,100 plus 5% of selling price Administrative expenses $3,000 plus 20% of selling price The number of units needed to achieve

Problem set

1. Wages paid to the factory manager are considered an example of; A. Direct labor-ye, Period cost yes B. Direct labor yes Period cost yes C. Direct labor no, period cost-yes D. Direct labor- no, period cost no 2. Property taxes on a manufacturing plant are an element of A. Conversion cost- yes, period cost no

Accounting and Unit Calculation

Production and purchases budgets. Ozark Inc. has actual sales for August and September and forecasted sales for October, November, December, and January as follows: Actual: August 8,300 units September 8,700 units Forecasted: October 8,400 units November 9,500 units December 7,800 units January 7,400 units R

Tax equivalent yield of a municipal bond

What is the tax equivalent yield of a municipal bond paying 4% for someone in the 30% tax bracket (assume this investor resides in the same state as the municipal bond).

Calculation of Financial Ratios

Calculation of Ratios The financial information below was taken from the annual financial statements of 2006 2005 Current assets $240,000 $212,000 Current liabilities 80,000 90,000 Total liabilities 182,000 160,000 Total assets 520,000 480,000 Sales 400,000 370,000 Cost of goods sold 240,000 220,000 Inven

ACCOUNTING: What the Numbers Mean

Cost of goods manufactured, cost of goods sold, and income statement. Miller & Co. incurred the following costs during June: Raw materials purchased $66,150 Direct Labor ($15 per hour) $82,500 Manufacturing Overhead (Actual) $135,450 Selling Expenses $44,700 Administrative Expenses $22,050 Interest Expense $7,660

ACCOUNTING: What the Numbers Mean

Activity-based costing versus traditional overhead allocation methods.. Summerset Industries manufacturers and sells custom-made windows. Its job costing system was designed using an activity-based costing approach. Direct materials and direct labor costs are accumulated separately, along with information concerning three manufa

Full concept of an uncollectible account?

If a company made a credit sales of $500,000 during 2008. Experience indicates that uncollectible -account expense is 1/2 of 1% of credit sales. At December 31s,2008, Company's account Receivable balance is $130,000 and Allowance for Uncollectibles stands at $1,600 before the year end adjustment. How would I go about recor

Accounting problems for Bogus Company

At December 31st, 2007, The Accounts Receivable balance of "Bogus Company" is $300,000. The Allowance for Doubtful Accounts has a $3,900 credit balance. "Bogus Company" prepares the following aging schedule for its accounts receivable. Age of Accounts: total balance 1-30 days

Cash Flow Multiple choice

Answer the following multiple-choice questions: a) Which of the following could lead to cash flow problems? 1. Tightening of credit by suppliers 2. Easing of credit by suppliers 3. Reduction of inventory 4. Improved quality of accounts receivable 5. Selling of bonds b) Which of the following would not contribute to bankru

Flexible Budgets, ROI & Residual Income

1. Barrick Company has established a flexible budget for manufacturing overhead based on direct labor-hours. Total budgeted costs at 200,000 direct labor-hours are as follows: Variable costs (total): Packing supplies $120,000 Indirect labor $180,000 Fixed costs (total): Utilities $100,000 Rent $

Costs of Eliminating a Division and Buying Wheels

For the following problems, please see attached for full formatting of tables, etc. 1. The Cook Company has two divisions--Eastern and Western. The divisions have the following revenues and expenses: - Sales - Variable costs - Direct fixed costs - Allocated corporate costs Net income (loss) Eastern

Direct Labor Variance, Material Quantity, etc.

Arrow Industries employs a standard cost system in which direct materials inventory is carried at standard cost. Arrow has established the following standards for the prime costs of one unit of product. (see chart in attached file) During May, Arrow purchased 160,000 pounds of direct material at a total cost of $304,000. T

Business and Inherent risks of Chemeq Ltd.

I'm having problems in identifying the risk factors for Chemeq Ltd. --- Problem: You are the Senior Audit Partner of Cassidy and Sundance, Chartered Accountants. Your firm is one of the Big 4 accounting and audit firms in Australia and has significant experience in the audit of ASX listed companies and all industries. I

Prepare the operating activities

Prepare the operating activities section?indirect method. (SO 3) E14-3 The current sections of Blues Traveler Co. balance sheets at December 31, 2005 and 2006, are presented below. BLUES TRAVELER CO. Comparative Balance Sheets (partial) December 31, 2006

Net Income as a standard for investors

Net income of the organization is the standard by which many investors and lenders use to gage the success of the organization. Discuss the reasons why this figure can be deceiving and how the accounting profession has tried to structure the income statement to make this decision process more accurate. Is net income a standard f