1. Why is it better to refer to the costs, rather than values, of assets such as plant or inventories? 2. Depreciation is cost allocation, not valuation? Is this correct? Why or why not? 3. What types of companies would you expect to have unearned revenues (or deferred revenues) on their balance sheets?
The chairman of the board of directors of the company for which you are the chief accountant has told you that he has little use for accounting figures based on cost. He believes that replacement values are of far more significance to the board of directors than out-of-date costs. Present several arguments to convince the ch
Complete the following chart by placing an "X" under the applicable column headings. Classify each cost as a fixed cost or a variable cost and as either a direct or indirect product cost or a period cost. Item Cost Behavior Product Costs Period Cost Fixed Variable Direct Indirect Glue used in furniture Cost of work
ONLY HIGHLIGHTED AREAS OF THE ATTACHMENT 13. The following information was extracted from the accounts of Colaw Corporation at December 31, 2007: CR(DR) Total reported income since incorporation $750,000 Total cash dividends paid (400,000) Cumulative effect of changes in accounting principle (60,000)
Use the information below for the year ended December 31, 20xx, to prepare the statement of cost of goods manufactured. Inventories Beginning Ending Materials inventory $41,000 $ 51,000 Work in process inventory 62,000 78,000 Direct materials purchased 258,000 Total direct labor costs 372,000 Total indirect labor costs
See attached file for clarity. Management accounting differs from financial accounting in many ways. Indicate with an "X" in the appropriate column whether each of the following characteristics relates to financial accounting, management accounting, or neither. Financial Accounting Management Accounting Neither Primary U
Byp3-5 In reviewing the accounts of Keri Ann Co. at the end of the year, you discover that adjusting entries have not been made. Instructions Write a memo to Keri Ann Nickels, the owner of Keri Ann Co., that explains the following: the nature and purpose of adjusting entries, why adjusting entries are needed, and the typ
1. RNO Company's market for the Model 55 has changed significantly, and RNO has had to drop the price per unit from $265 to $125. There are some units in the work in process inventory that have costs of $150 per unit associated with them. RNO could sell these units in their current state for $100 each. It will cost RNO $10 pe
1 A company has $27 per unit in variable costs and $1,000,000 per year in fixed costs. Demand is estimated to be 100,000 units annually. What is the price if a markup of 40% on total cost is used to determine the price? A) $51.80 B) $37 C) $27 D) $37.80 2 True or False: Firms that have high levels of fixed costs have lo
Problem 7-2 a Protecting Cash Osage Farm Supply had poor internal control over its cash transactions. Facts about the company's cash position at November 30 are described below. The accounting records showed a cash balance of $ 35,400, which included a deposit in transit of $ 1,245. The balance indicated in the bank statement
How do I do this? Whitehouse Company manufactures major appliances. Because of growing interest in its products, it has just had its most successful year. In preparing the budget for next year, its controller compiled these data: Month Volume in machine hours Electricity cost July 6,000 $ 60,000 August
1. The budgeted amount of selling and administrative expense for a period can be found here a. sales budget. b. cash budget. c. pro forma income statement. d. pro forma balance sheet. 2. In multiple-product firms, the product that has the highest contribution margin per unit will a. generate more profit for
4-2. Account analysis: Lancer Audio produces a high-end DVD player that sells for $1250. Total for July operating expenses were as follows: Units produced and sold 140 Component cost 67000 Supplies
See attached file for clarity. Incomplete manufacturing costs, expenses, and selling data for two different cases are as follows. Instructions (a) Indicate the missing amount for each letter. (b) Prepare a condensed cost of goods manufactured schedule for Case 1. (c) Prepare an income statement and the current assets se
This solution is comprised of detailed explanations and definitions of several financial terms. Find the definitions of the most common and complex financial terms and definitions.
Define the following terms and identify their role in finance: a. Finance b. Efficient Market c. Primary Market d. Secondary Market e. Risk f. Security g. Stock h. Bond i. Capital j. Debt k. Agency Problem l. Risk - Return Trade Off m. Return on Inv
Please explain what cost accounting system Home Depot uses. What are the benefits/challenges of the cost accounting system and why would you recommend it.
Barletta Corporation has one service department and three producing departments. The budget for the following year allocates the service department costs to the producing departments based on the number of employees in each department. Currently, the budget for the service department is $2,400,000 and the number of employees in
Charlottetown Powder Company produces powder in batches. Each powder can be sold in its current condition or processed further and specialized for high priced department stores. Data concerning the various products appear below. Joint processing costs are $200,000. Required: (a) Determine which products should be sold
Crazy Cool Colas prepares specialty-flavored sodas for large grocery chains and bakeries. The company employs a process-costing system. Most of the basic ingredients, labeled Material Group A, are added at the beginning of the mixing process. However, to give the sodas the special "sizzle" they are named for, the company adds a
Monrovia Corporation manufactures two models of its product named "Model One" and "Model Two." In the past, Monrovia had been using a traditional overhead allocation system based solely on machine hours. Total overhead costs were estimated as follows: ..............................................Estimated Activity.....
Factory overhead is applied at a rate of $50 per machine hour. The beginning and ending balances of work in process and finished goods are zero. All goods manufactured are sold. Other information includes the following: Cost of goods sold $ 6,000,000 Direct labor $ 2,000,000 Direct labor hours used 100,000 hours
BE22- 1 Valdez Company uses both standards and budgets. For the year, estimated production of Product X is 500,000 units. Total estimated cost for materials and labor are $ 1,000,000 and $ 1,600,000. Compute the estimates for (a) a standard cost and (b) a budgeted cost. BE22- 2 Hideo Company accumulates the following data co
Suppose a company incurs the following costs: Labor-$500, Equipment-$400, Materials-$100. It owns the building, so it does not have to pay the usual $800 in rent. 1. What is the total accounting cost? 2. What is the total economic cost? 3. How would accounting and economic costs change if the company sold the buildin
Walton Manufacturing Company was started on January 1, 2008, when it acquired $85,000 cash by issuing common stock. Walton immediately purchased office furniture and manufacturing equipment costing $10,000 and $54,000, respectively. The office furniture had a five-year useful life and a zero salvage value. The manufacturing equi
Assume the market value of equipment acquired is not determinable by reference to a similar purchase of cash. Describe how the acquiring company should determine the capitalizable cost of equipment for each of the following separate cases when it is acquired in exchange for: (1) Bonds having an established market value (2) C
EXERCISE 23.10 Preparing a Flexible Budget LO6 The flexible budget at the 70,000-unit and the 80,000-unit levels of activity is shown below. (see attached file for data) Complete the flexible budget at the 90,000-unit level of activity. Assume that the cost of goods sold and variable operating expenses vary direct
INTERPRETING FINANCIAL STATEMENTS BYP13-4 The Coca-Cola Company and PepsiCo, Inc. provide refreshments to every corner of the world. Selected data from the 2004 consolidated financial statements for The Coca-Cola Company and for PepsiCo, Inc., are presented here (in millions). Coca-Cola PepsiCo Total current
What is cost accounting and how do we best use it?
I need help answering the questions below. I am confused on how to answer the questions. Week 4 DQ 1 What are some of the advantages and disadvantages of standard costs? How do managers determine what the standard cost should be? Describe the effect of inaccurate standard costs on financial reporting. Week 4 DQ 2 -
1- What are some of the advantages and disadvantages of standard costs? How do managers determine what the standard cost should be? Describe the effect of inaccurate standard costs on financial reporting 2- When should variances be investigated? Who should be responsible for correcting a negative variance? Why? What are