You have recently hired a new assistant, Sally Jones, who previously worked in a financial accounting office preparing journal entries and financial statements. While your new assistant has experience with and fully understands financial accounting, she has no experience with managerial accounting. Assignment: In a memo
See the attached file. Problem 1: Cost Terminology, Cost Flows and Cost Behavior Part 1: The Miami Company suffered major losses in a fire on October 23, 2007. In addition to destroying several buildings, the blaze destroyed the company's work in process inventory for an entire product line. Fortunately, the company wa
8- 17 Fixed manufacturing overhead, variance analysis ( continuation of 8- 16). Esquire Clothing allocates fixed manufacturing overhead to each suit using budgeted direct manufacturing labor- hours per suit. Data pertaining to fixed manufacturing overhead costs for June 2009 are budgeted, $ 62,400, and actual, $ 63,916. Requir
1) How does planning of fixed overhead costs differ from planning of variable overhead costs? Can you think of fixed and variable costs in your personal budget? 2) Explain why variance analysis is important.
See the attachments. PROBLEM 3 The following data have been taken from the records of Larsen Manufacturing for the year ended 12/31/2011. Sales $860,000 WORD BANK Purchases of raw materials 150,000 12/31/2011 Direct labor 110,000 Cost of goods available for sale
Kool-skinz Company manufactures custom-designed skins (covers) for iPods and other portable MP3 devices. Variable costs are $10.80 per custom skin, the price is $18, and fixed costs are $66960. Required: 1. What is the contribution margin for one custom skin? 2. How many custom skins must Kool-skins Company sell to break ev
7- 17 Flexible budget. Connor Company's budgeted prices for direct materials, direct manufacturing labor, and direct marketing ( distribution) labor per attaché case are $ 40, $ 8, and $ 12, respectively. The president is pleased with the following performance report: Actuals Co
Ken Howard, financial analyst at JVR Corporation, is examining the behavior of quarterly maintenance costs for budgeting purposes. Howard collects the following data on machine-hours worked and maintenance costs for the past 12 quarters: Quarter Machine-Hours Maintenance Costs 1 - 90,000 $185,000 2 - 110,000 $220,000
What are the differences between a traditional cost accounting system and an ABC cost accounting system? ABC systems are always more accurate than traditional accounting systems. Do you agree with this statement or not. Explain.
We want a flexible budget because costs are difficult to predict. We need the flexibility to change budgeted costs as input prices change. Does a flexible budget serve this purpose? Explain. Discuss the role of understanding cost behavior and cost-driver activities for flexible budgeting.
Choose the correct answer and explain in one sentence: 1. Depreciation, in accounting, is a process that results in: a. an accurate measurement of the economic usefulness of an asset. b. depreciable assets being reported in the balance sheet at their fair market value. c. accumulating cash for the replacement of the asset. d. spreading the cost of an asset over its useful life to the entity. 2. Which of the following accounting concepts/principles is most significant in the development of a capitalization policy? a. Consistency. b. Materiality. c. Original Cost. d. Matching of revenue and expense
Choose the correct answer and explain in one sentence: 1. Depreciation, in accounting, is a process that results in: a. an accurate measurement of the economic usefulness of an asset. b. depreciable assets being reported in the balance sheet at their fair market value. c. accumulating cash for the replacement of the as
Please select the correct answer: 1. MC Matching revenues and expenses refers to: a). recording revenues when a product is sold or a service is rendered. b). accurately reflecting the results of operations for a fiscal period. c). recording revenues when cash is received. d). having revenues equal expenses 2
Please give examples of what types of companies may engage in job-costing and what types of companies that may engage in process-costing. Be specific in your examples and support your argument from the product or service that your organization delivers. Discuss your thoughts on the single-driver approach to allocating manufa
3.17 CVP computations. Patel Manufacturing sold 200,000 units of its product for $ 30 per unit in 2008. Variable cost per unit is $ 25 and total fixed costs are $ 800,000. Required 1. Calculate (a) contribution margin and (b) operating income. 2. Patel's current manufacturing process is labor intensive. Kate Schoenen, Pa
AAA Inc. has developed the following production budget for one of its products for the second quarter of the year: month production april 18,300 may 15,400 june 12,000 Each unit takes 4 pounds of material 256, which costs $3 per pound. AAA inc has 1600 pounds of material 256
Parker Trophies makes and sells trophies it distributes to little league ballplayers. The company normally produces and sells between 8,000 and 14,000 trophies each year. The following cost data apply to various activity levels. a. Complete the preceding table by filling in the missing amounts for the levels of activity shown
The following are six cost pools established for a company using activity-based costing.The pools are related to the company's products using cost drivers. Cost Pools: 1. Inspection of raw materials 2. Production equipment repairs and maintenance 3. Raw materials storage 4. Plant heat, light,water, and power 5. Finished
1. Dockers, Inc. is a retail chain with 125 stores organized into 5 regions. The most recent annual income statement for the Snert, ND store is given below (in $000). It is typical of recent years, and Hagar is considering closing the store because of chronic losses. What factors should Dockers consider in making the decisio
1. Implementing a dividend valuation model to determine the value of the common shareholders' equity requires an analyst to measure three elements. Discuss what three elements need to be measured by the analyst. 2. Under the assumption of clean surplus accounting how would you compute total dividends paid to common equity-ho
Problem 7 The Greater Insurance Company has two service departments -- actuarial (S1) and premium rating (S2), and two production departments -- marketing and sales. The distribution of each service department's efforts to the other departments is shown below: FROM TO Actuarial Premium Marketi
Problem 2-7 The following income statement items, arranged in alphabetical order, are taken from the records of Shaw Corporation for the year ended December 31, 2008. Advertising expense $1,500 Commission expense $2,415 Cost of goods sold $29,200 Depreciation expense - office building $2,900 Income tax expense $1,540 Insu
As I understand it, costs such as the salary of the vice president of transportation operations are variable because the more traffic you handle, the lowers your unit costs are. In contrast, costs such as fuel are fixed because each ton-mile should entail consumption of the same amount of fuel and hence bear the same unit cost.
You are heading for an interview at a fortune 500 company. You know there will be interviews for 2 different positions; one in the financial accounting department, and one in their managerial accounting department. You expected to interview by managers from each department, and in fact they have each sent you a set of questions
Review Intuit's Quickbooks bookkeeping software. Please download a sample copy of the software from the following site: http://quickbooks.intuit.com/product/accounting-software/free-accounting-software.jsp. After experimenting with the software write a report discussing the positive and negative aspects of the software. Is th
Financial accounting problems dealing with account receivable, preparing journal entries related to bad debts expense, computing bad debts amounts, accounts receivable turnover ratio, and weakness of direct-write off method.
Also please see the attached files P9-1A and P9-2A. P9-1A Preparing journal entries related to bad debts expense. At December 31 2007, Leis Co. reported the following information on its balance sheet. Accounts receivable $960,000 Less: Allowance for doubtful accounts 80,000 During 2008, the company had the follo
Why do traditional banks perceive the financial risk to be greater among small businesses? If you wanted to start a small business what are ways to secure financing?
Why do traditional banks perceive the financial risk to be greater among small businesses? If you wanted to start a small business what are ways to secure financing? What are the pros and cons of these alternative funding solutions?
"Financial accounting" and "managerial accounting" roles and differences.
1. Chuck McElravy owns Common Grounds Coffee House, near the campus of Manatee College. The business has cash of $2,000, furniture that cost $8,000 and account receivable from customers for $1,000. Debts include accounts payable of $1,000 and a $6,000 note payable. How much equity does McElravy have in the business? Using Mc
Topic on attached problems: acquisitions costs lump-sum acquisitions nonmonetary exchanges like kind exchanges valuation of PPE for Cadburry Problem 1 8 18 10-14.
Capitalization of Interest Wordcrafters Inc. is a book distributor that had been operating in its original facility since 1982. The increase in certification programs and continuing education requirements in several professions has contributed to an annual growth rate of 15% for Wordcrafters since 2002. Wordcraftersâ?? or