* Yukio Mishima Industries acquired equipment this year to be used in its operations. The equipment was delivered by the suppliers, installed by Mishima, and placed into operation. Some of it was purchased for cash with discounts available for prompt payment. Some of it was purchased under long-term payment plans for which the i
Why is manufacturing overhead considered an indirect cost of a unit of product? Are there any situations where this could be considered a direct cost of a unit of product and if so, how?
(Installment-Sales Method and Cost Recovery) Kenny Corp., a capital goods manufacturing business that started on January 4, 2007, and operates on a calendar-year basis, uses the installment-sales method of profit recognition in accounting for all its sales. The following data were taken from the 2007 and 2008 records.
Jay Manufacturing, Inc. began operations five years ago producing probos, a new type of instrument it hoped to sell to doctors, dentists, and hospitals. The demand for probos far exceeded initial expectations, and the company was unable to produce enough probos to meet that demand. The company was manufacturing probos on equipme
1)The following transactions occurred in October at Pawnee Workshops, a custom manufacturer of furniture: 1. Purchased $16,000 of materials. 2. Issued $800 of supplies from materials inventory. 3. Purchased $11,200 of materials. 4. Paid for materials purchased in transaction (1) 5. Issued $13,000 in direct materials to the
Which s a better criterion for judging managers, budgeted performance or past performance? Why? Production managers and marketing managers historically mix like oil and water. Discuss how a budget can assist in reducing battles between these two areas (production and marketing). What specific considerations arise when bu
1. For the year ended December 31, 2010, Kurz Co. estimated its allowance for doubtful accounts using the year-end aging of accounts receivable. The following data are available: Allowance for doubtful accounts, 1/1/10 $37,000 Estimated uncollectible accounts during 2010 (1% on credit sales of $4,000,000) 40,000
I think that the fees would be better used for paying off our house and buying a new, bigger house that I've had my eye on. Does it make better tax sense for us to pay off the mortgage, sell the house, and buy a new house, or should we just use the money to buy the new house after selling the old house? Also, I sell handcraft
Milano Corporation has three operating divisions and requires a 12% rreturn on all investments. Selected information is presented here: a. Calculate the missing amounts for each division. b. Comment on the relative performance of each division. c. Provide an example to show how residual income improves decision making at
Jane Smith I think that the fees would be better used for paying off our house and buying a new, bigger house that I've had my eye on. Does it make better tax sense for us to pay off the mortgage, sell the house, and buy a new house, or should we just use the money to buy the new house after selling the old house? Also, I se
With its current leverage, Impi Corporation will have net income next year of $4.5 million. If Impi's corporate tax rate is 35% and it pays 8% interest on its debt, how much addtional debt can Impi issue this year and still receive the benefit of the interest tax shield next year?
Grommit Engineering expects to have net income next year of $20.75 million and free cash flow of $22.15 million. Grommit's marginal corporate tax is 35%. a) If Grommit increases leverage so that its interest expense rises by $1 million, how will its net income change? b) For the same increase in interest expense, how will
Explain appropriate controls for accounts payable. Do not just list internal controls explain appropriate controls for accounts payable based on the Apollo Shoes case. http://www.mhhe.com/business/accounting/louwers2e/apollo.html. Review board meeting minutes for AP.
Explain the purpose and importance of the completeness assertion for accounts payable.
See attachment. Gruner Company produces golf discs which it normally sells to retailers for $7.16 each. The cost of manufacturing 20,200 golf discs is: Materials $10,302 Labor 29,290 Variable overhead 20,402 Fixed overhead 39,592 Total $99,586 Gruner also incurs 8% sales commission ($0.57) on each disc sold.
On January 2, 2011, Kinnaird Hospital purchased a $92,000 special radiology scanner from Faital Inc. The scanner has a useful life of 5 years and will have no disposal value at the end of its useful life. The straight-line method of depreciation is used on this scanner. Annual operating costs with this scanner are $105,060.
5. Loin Cabinetry produces two models of home shelving, the Basic-Super and the Mega-Super. Data on operations and costs for November are: Required: Compute the predetermined overhead rate, assuming Loin Cabinetry uses: (a) Direct labor hours to allocate overhead costs (b) Direct labor costs to allocate overhead costs (c)
4. Smith and Blarney Refiners began business on July 01. The following operations data are available for July and the one product the company produces: Costs incurred in July were: All production at Smith and Blarney is sold as it is produced (i.e., there are no finished goods inventories). Required: (a) Compu
2. A company ran a regression analysis using direct labor hours as the independent variable and manufacturing overhead costs as the dependent variable. The results are summarized below: The company is planning to operate at a level that would require 12,000 direct labor hours per month in the upcoming year. Require
What are the advantages and disadvantages of organizing a business as a partnership? Compare and contrast a general partnership and a limited partnership. Under what circumstances might you set up a partnership?
There has been talk for several years that the FASB and IASB are trying to converge their standards, but it seems to be a very slow process. Do you think this will ever happen and is it appropriate for vastly different economies (think developed nations with stable economies v. third world, developing countries with high inflati
On February 25, 2012, a flood destroyed one of the company's manufacturing plants causing $600,000 of uninsured damage. Determine the appropriate treatment of each of these events in the 2011 financial statements of Northwest Distribution Corporation.
The ABC Floral Shop sold the following number of geraniums during the last 2 weeks: Day Demand Day Demand 1 200 8 150 2 134 9 182 3 157 10 197 4 165 11 136 5 177 12 163 6 125 13 157 7 146 14 169 Develop a spreadsheet to answer the following ques
Can an accountant and an attorney be the same person? An accountant and an attorney can definitely be the same person. In fact, many professional organizations, including the National Society of Attorney CPA's encourage it. When you have an attorney-CPA, the individual possesses the legal expertise of an attorney, combined wi
What is push-down accounting? What is FASB's position regarding Push down accounting.
How does ABC costing differ from traditional allocation methods? What can an organization learn from the process of applying ABC costing? Some firms have a lot of fixed costs and few variable costs, while other firms are configured the other way around. What affect do you think the existence of a high proportion of fixed c
1) OBX Mufflers accepted a five-month, 7.5% interest, $2,400 note from ABD Motors on June 1, 2008. The entire balance is payable at the note's maturity. What will be the total payment on October 31, 2008? 2) George Masonry accepted a four-month, 10% interest, $1,800 note from Earth Tones on July 1, 2008. The entire balanc
O'Hara Inc. made sales of $350,000 during 2008, its first year of operations. Of this $10,000 remained in accounts receivable at the end of the year. Additionally, the company paid and incurred $200,000 in expenses during the year. The company also prepaid $2,000 of it's 2009 insurance and recorded $4,000 of depreciation expense
When applying the operating profit and loss test to determine reportable segments, FASB 131 prescribes that costs assigned to an operating segment should: 1 reflect the reporting practices of the industry. 2 reflect the reporting practices of the company. 3 be in harmony wit
In 2006 and 2007, each of Aldor Company's four operating segments met one of the three quantitative tests for segment reporting. In 2008, Segment B failed to qualify. I have presented a basic look at the drivers and how my company uses them. You will want to add your ideas and insights for this as well. Drivers: Intellig