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Accounting

Split-off point & pay back period

Use the following to answer question 89: Dowchow Company makes two products from a common input. Joint processing costs up to the split-off point total $38,400 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split-off point. Each product may be sold at the split-of

Throughput time

Ricric Corporation has provided the following data for one of its products: Process time 3 days Queue time 4 days Inspection time 0.7 days Move time 0.3 days Wait time 9 days 73. The throughput time for this operation would be: A) 8 days. C) 17 days. B) 3 days. D) 7.7 days.

Conversion costs

55. Narver Company uses the weighted-average method in its process costing system. Operating data for the Lubricating Department for the month of October appear below: Percentage Unit complete Beginning work

Unit costs

54. Golden, Inc., has been manufacturing 5,000 units of Part 10541 which is used in one of its products. At this level of production, the unit product cost of Part 10541 is as follows: Direct materials $ 2 Direct labor $ 8 Variable manufacturing overh

Income and Profits

Please help with the following problem. Use the following to answer questions 42-43: The following is Addison Corporation's contribution format income statement for last month: Sales $1,000,000 Less variable expenses 700,000 Contribution margin 300,000 Less fix

Litton Company: Variable Manufacturing Overhead

Use the following to answer question 24: The Litton Company has established standards as follows: Direct material 3 lbs. @ $4/lb. = $12 per unit Direct labor 2 hrs. @ $8/hr. = $16 per unit Variable manuf. Overhead 2 hrs. @ $5/hr. = $10 per unit Actual production figures for the past year are given below. The company rec

Sales Tax Calculation

Padres Co. sells goods subject to a state tax of 5%. State law requires that the amount of sales tax collected during the month be remitted by the end of the following month. At the time of a sale, Padres Co credits the sales account for both the amount of sales revenue and sales tax. Sales tax, when paid, is then debited to

Activity-based costing vs traditional overhead allocation

Activity-based costing versus tradtional overhead allocation methods: Woodruff Industries manufactures and sells custom-made coffee tables. 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

Accounting Debate Questions for Standards and Implementation

Provide a two or three sentence response that argues for or against (indicate which) each of these statements: a. Accounting is an exact science b. Mangers choose accounting procedures that produce the most accurate picture of the company's operating performance and financial condition. c. Accounting standards in the Un

Solve equations by grafting, substitution, addition method

Solve by graphing, indicate whether each system is independent, inconsistent, or dependent. 1. x + y = 5 x - y = -1 2. y = -x y = -x + 3 Solve by substitution, indicate whether each system is independent, inconsistent, or dependent. 3. x - y = 3 3x - 2y = 3 4. 2x - y = 3 6x - 9 = 3y Solve by the addition metho

Accounting multiple choice questions explained in this solution

Definitional 1. A (n) __________ is a legal entity created by a state, and it is separated from its owners and managers. 2. The ________ _____ lists the firm's assets as well as claims against those assets. 3. The debt ratio, which is the ratio of ______ ___ to ________ ________, measures proportion of funds supplied b

Capital stock transactions

On the basis of the explanation for each entry, prepare the entry that should have been made for the capital stock transactions.

Calculating Collection Float

Lock Boxes. Anne Teak, the financial manager of a furniture manufacturer, is considering operating a lock-box system. She forecasts that 400 payments a day will be made to lock boxes with an average payment size of $2,000. The bank's charge for operating the lock boxes is $.40 a check. The interest rate is .015 percent per day.

Should the company invest money in one or two of these projects? Which ones?

Here is the project: Spend $200,000 to increase plant capacity for Product B. The new capacity will cause profits to increase by $200,000 per year in the first year. The sales forecast is estimated to be 80% accurate. The other project is Upgrade the MIS system for the company. There is a 100% certainty I will have manpower s

Variance Analysis

Spacely Sprockets 2001 Budget Executive Summary File: SGMU M:MSMFin642Spacely-Budget.xls Last Revised: 12/17/01 Prepared by: Tom Gruber General Budget calls for reasonable increases in sales, prices and expenses except for labor. We have to keep overtime under control to return to profitability. Sales Set re

Variance Analysis

Westport Furniture 2001 Budget Executive Summary General To hit Mr. Westports profit goal of $70000, our 2001 budget is very aggressive in expense reductions (especially in direct labor) and somewhat optimistic on revenue given the pressure from plastic tables. Margin widens 5% points from 28% to 33%. Sales We have fo

Choosing Performance Measures

The president of the Canby Insurance Company has just read an article on the balanced scorecard. A company has a balanced scorecard when there is a set of performance measures that reflect the diverse interests and goals of all the stakeholders (shareholders, customers, employees, and society) of the organization. Presently, Can

Indirect cost rate per truck trip budgeted costs

14-19 Fruit juice, inc. processes orange juice as its East Miami plant and grapefruit juice at its West Miami plant. It purchases oranges and grapefruit from growers' cooperatives in the Orlando area. It owns its own trucking fleet. It takes the same mileage to go to each Miami plant from Orlando. The trucking fleet is run as a

Walters Company: incremental monthly revenue, accounting for joint costs

This problem is titled Processing Further. # 2 Walters Company is considering producing 120,000 pounds of paperclips and 140,000 pounds of staples each month from their current production of grade A and Grade B wiring. The following are the expenditures to date: Jan 1 $100,000 Bulk steel purchase Jan 2 - Feb 15 $150,0

Accounting Equation Chart

The balance sheet at 12/31/04 and 12/31/05 show the following: Current Assets Long Term Assets C Liabilities LT Liabilities Owners Equity 04 ? ? $360,000 ? ? 05 ? $750,000 ? ?

Liabliity of Accounting firms that go bottm up in 1 yr after clean audit.

Due to frequency of corporate scandals in the US, there have been many efforts toward restructuring. Evaluate proposal of: Accounting firms should be liable to pay stock holders if they give a company a clean audit and it goes bankrupt in one year. Opinion with refrences to back up stated opinion if possible.

Capitalization Vs. Expensing

What are the fundamental issues surrounding capitalization vs expensing? What approach does management seem to prefer and why? Which approach do you think auditors seem to prefer?

Accounting Information Systems

The Financial Accounting Standards Board (FASB) indicated that the traditional accounting information system design actually constrained standard setting in FASB Statement 95, "A Statement of Cash Flows." The Board received 450 comment letters, most from bank lending officers-accounting information users-who favored requiring th

Overhead under Job-Order Costing in a Service Organization

PPGV provides auditing services to midmarket clients. PPGV developed the following estimates for the current year. A. Compute the predetermined overhead rate based on: 1. direct labor hours 2. direct labor cost B. Compute the amount of overhead that would have been applied to each of these jobs using various overhead rate