The marketing, finance and accounting students estimate sales of 15,000 units for the upcoming period at Chance Company. The budget was based on the assumptions that follow: Per Unit Sales $60 Variabl
Budgeting is a useful management tool used for decision making and control. Therefore, Quicksand Company has set the following standards for one unit of products: Direct materials 50 yards x $3 = $150 Direct labor 10 hours x 18=
Discuss each request below for a budget revision, putting what you see as both sides of the argument and reach a conclusion as to whether a budget revision should be allowed. Materials: A local material supplier was forced into liquidation. Criss-cross' buyer managed to find another supplier, 150 miles away at short notice
Chaff Co processes and sells brown rice. It buys unprocessed rice seeds and then, using a relatively simple process, removes the outer husk of the rice to produce the brown rice. This means that there is substantial loss of weight in the process. The market for the purchase of seeds and the sales of brown rice has been, and is e
On creating a new 100 percent-owned corporation, Ben was advised by his tax consultant to treat 50 percent of the total amount that was invested as a loan and 50 percent as a purchase of corporate stock. What tax advantage does this arrangement have over structuring the entire investment as a purchase of stock? Discuss (AICPA ad
Elsie Dairy Products Corp. buys one input, full-cream milk, and refines it in a churning process. From each gallon of milk Elsie produces three cups of butter and nine cups of buttermilk. During May 2010, Elsie bought 12,000 gallons of milk for $22,250. Elsie spent another $9,430 on the churning process to separate the milk into
Describe a variable, fixed, mixed and step cost in an organization. Would this organization be more likely to benefit from using a manufacturing cost hierarchy or a customer cost hierarchy for determining cost drivers? Why? Identify a cost in each of the four cost hierarchies.
P11.10 Solve the requirements of information below for the year ended July 31, 2011. Required: - Total current assets - Plant assets, net of depreciation - Goodwill - Total other long-term assets - Total assets - Total current liabilities - Total long-term liabilities (including deferred taxes) - Total equity
Use a selected company or your current work environment to identify at least one cost or expense that would fit under each of the following categories: - Variable - Fixed - Mixed - Step Would your company be more likely to benefit from using a manufacturing cost hierarchy or a customer cost hierarchy for determining cost
Problem Richie is a wealthy rancher in Texas. He operates his ranch through a grantor trust set up by his grandparents. Richie does not like to get his hands dirty, so he hires a professional management company to run the ranch. The property generated a $500,000 loss this year. Can Richie deduct this loss on his Schedule E give
1. The Financial Accounting Standards Board (FASB) sets the accounting rules for public companies in the United States. These accounting rules are known as Generally Accepted Accounting Standards (GAAP). The International Accounting Standards Boards (IASB) proposes international accounting rules. These rules are known as Inte
Contribution margin format income statement "what-if" questions P12.20 Prepare a traditional income statement and a contribution margin format income statement (and contribution margin ratio) for a firm with a sales volume of 15,000 units: Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . .
P12.17 High-low method A department of Alpha Co. incurred the following costs for the month of September. Variable costs, and the variable portion of mixed costs, are a function of the number of units of activity: Activity level in units. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000 Variable costs . . .
Financing Deficit Balance Sheet as of December 31, 2013 Cash...........................$ 180,000 Accounts payable.....................$ 360,000 Receivables....................360,000 Notes payable.............................156,000 Inventories......................720,000 Line of credit...............................
George Smith owns a lot of investments in common stock. He says that he does not care what a company's net income is because the stock price tells him everything he needs to know. How would you respond to George?
I need help analyzing the advantages and disadvantages of decentralized organizations based on decision-making, include examples of performance measurement in decentralized organizations.
Examine Target for the years 2004-2006 and compare to Walmart. Comment on the relative liquidity and efficiency these firms. How does Target compare to Walmart? Would you invest in this company? Defend your position with reasons and facts.
Which statement best describes an organization's accountability? Legal liability to creditors Ethical responsibility to the public, employees and other stakeholders Fiduciary responsibility to manage the resources of an organization Obligation to pay local, state and federal taxes
Durham Company uses a job-order costing system. The following transactions took place last year: raw materials requisitioned for use in production, $40,000 80% direct and 20% indirect. Factory utility costs incurred, $14,600. Depreciation on plan and equipment $28,000. Cost for Salaries and wages : Direct labor $40,000, Ind
Complete in excel. Omit C. 5-9. The Village of Budekville, which has a fiscal year July 1 to June 30, sold $3,000,000 in 6 percent tax-supported bonds at par to construct an addition to its police station. The bonds were dated and issued on July 1, 2011. Interest is payable semiannually on January 1 and July 1, and the first
Find four peer- or jury-reviewed articles on an innovation related to your specialization. Evaluate each article for the following: Reliability of evaluation of research methods and of the theories and data on which the article is based Appropriateness for intended audience Authority or background of the author Limitati
Please treat (1) (2) and (3) as separate units: (1) Hambly Corp. owned 80% of the voting common stock of Stroban Co. During 2011, Stroban sold a parcel fo land to Hambly. The land ad a book value of $82,000 and was sold to Hambly for $145,000. Stroban's reported net income for 2011 was $119,000. What was the noncontrolling int
Problem 2: Mike's Meats incurs costs of $4,000 while processing raw chicken meat into three products: breasts, wings, and thighs. The meat is then sold to local grocery stores based on the following. Sales Price per lb. Quantity produced (lbs) Breast $2.00 3,000 Wings $0.50 1,000 Thighs $1.00 2,000 Required: (Calculate re
Problem 1: Bubble Corporation manufactures two products, I and II, from a joint process. A single production costs $4,000 and results in 100 units of I and 400 units of II. To be ready for sale, both products must be processed further, incurring separable costs of $1 per unit for I and $2 per unit for II. The market price for P
1. Locate the Master Glossary in the FASB Codification, and answer the following questions: a. What is the formal definition in the glossary of the term "Inventory?" b. ABC Company has a number of machines used for manufacturing its products. One of ABC's machine suppliers is trying to get rid of its existing machines to
Marion and Howard are married. Howard left home in February of 2012 and has not lived with Marion since. Marion has not spoken to Howard since November and does not wish to file a joint return regardless. They are not blind or disabled. No one may claim them as dependents. Marion does not wish to designate $3 for the Presidentia
I am working on a project for a class and I am having problems arriving at the right numbers, I don't need the report typed up or anything. But I need help with the answers and understanding the work so that I can compare my work and learn the process so I can write the accompanying report. The excel file has two sheets with
I need help analyzing the advantages and disadvantages of Economic Value Added, Return on Investment and Economic Profit. Thanks
Assume there is a well-financed, one-year-old company in the biotech industry that is concentrating on developing chemical-based compounds that are aimed at developing drugs to reduce the effects or onset of Alzheimer's Disease. What financial information (ratios or otherwise) would you think would be relevant or irrelevant from
1. Many people believe that the federal income tax is far too complex. But are there good reasons for this complexity? Provide an example of complexity in the Federal individual income tax code and describe the reason lawmakers included the provision in the tax code. Do you believe complexity is a necessary part of the internal