Herget, Inc employs a normal costing system. The following information pertains to the year just ended. Total manufacturing costs were $2,500,000. Costs of Goods Manufactured was $2,425,000. Applied manufacturing overhead was 30 percent of total manufacturing costs. Manufacturing overhead was applied to production at a
In your own words answer the following.... A) What are the particular items an analyst should review and study in a company's annual report, and what material in the annual report should be read with caution? B) What are some intangible factors that are important in evaluating a company's financial position and performan
Jerry Stone owns and operates a small beach shop in a mall on Sanibel Island, Florida. For the last six months, Jerry has had a display of sunglasses in the front window. Largely because of the display, Jerry has sold 100 pairs of sunglasses per month at an average cost of $26 and selling price of $50. The sales volume has doubl
Given the following selected account balances of Randa Company, prepare its manufacturing statement in proper form for the year ended on December 31, 2005. Include a listing of the individual overhead account balances in this statement. Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,252,000 R
Henderson Furniture sells reproductions of 18th century furniture. For a particular table, the assumptions of the inventory model with back orders are valid. D = 200 tables per year I = 25% per year C = $800 per table Co = $80 per order Cb = $50 per table per year The store is open 250 days a year. 3a. What are the val
Reavis Manufacturing Company was started on January 1, 2006, when it acquired $90,000 cash by issuing common stock. Reavis immediately purchased office furniture and manufacturing equipment costing $10,000 and $28,000 respectively. The office furniture had a five year useful life and zero salvage value. The manufacturing equi
Compare and contrast service and merchandising businesses. What accounts would be found in a merchandising business, but not in a service business. How do the financial statements differ?
Use the following information to answer questions 39 - 42. For January, a firm's equivalent units of production for materials and conversion costs are 20,000 and 16,000, respectively. The total cost of materials used during the month is $64,000, and conversion costs are $80,000. Materials costs and conversion costs in the beginn
Using the following information, compute the number of units to be produced. Desired ending inventory (in units) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,600 Beginning inventory (in units) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,400 E
A. Given the data of past demand for surgical and exam gloves, how did you decide on the forecast for each to use in the inventory management planning? How did you take into account that surgical gloves can be substituted for exam gloves but exam gloves cannot be substituted for surgical gloves? How did you take into accou
Fleurs, a boutique in Paris, France, had the following accounts in its accounting records at December 31, 20X2 (amounts in Euros, denoted as "E") Purchases..................... E250,000 Freight In.................. E8,000 Sales discounts............. 4,000 Purchase returns........ 7,000 Inventory Sales...............
Padlock Corp. owns 90 percent of Safeco, Inc. During the year, Padlock sold 3,000 locking mechanisms to Safeco for $900,000. By the end of the year, Safeco had sold all but 500 of the locking mechanisms to outside parties. Padlock marks up the cost of its locking mechanisms by 60 percent in computing its sales price to affiliate
12-19 Annual demand for the Doll two-drawer filing cabinet is 50,000 units. Bill Doll, president of Doll Office Suppliers, controls one of the largest office supply stores in Nevada. He estimates that the ordering cost is $10 per order. The carrying cost is $4 per unit per year. It takes 25 days between the time that Bill place
12-17 Ken Ramsing has been in the lumber business for most of his life. Ken's biggest competitor is Pacific Woods. Through many years of experience, Ken knows that the ordering cost for an order of plywood is $25 and that the carrying cost is 25% of the unit cost. Both Ken and Pacific Woods receive plywood in loads that cost $10
Demand for walnut fudge ice cream at the Sweet Cream Dairy can be approximated by a normal distribution with a mean of 21 gallons per week and a standard deviation of 3.5 gallons per week. The new manager desires a service level of 90 percent. Lead time is 2 days, and the dairy is open seven times a week. (work in terms of wee
A jewelry firm buys semiprecious stones to make bracelets and rings. The supplier quotes a price of $8 per stone for quantities of 600 stones or more, $9 per stone for orders of 400 to 599 and $10 per stone for lesser quantities. The jewelry firm operates 200 days per year. Usage rate is 25 stones per day and ordering costs a
The Friendly Sausage Factory can produce hot dogs at a rate of 5,000 per day. The company supplies hot dogs to local restaurants at a steady rate of 250 per day. The cost to prepare the equipment for producing hot dogs is $66. Annual holding costs are 45 cents per hot dog. The factory operates 300 days a year. Find: A) Th
A small copy center uses five 500 sheet boxes of copy paper a week. Experience suggests that usage can be well approximated by a normal distribution with a mean of 5 boxes per week and a standard deviation of one-half box per week. Two weeks are required to fill an order for letterhead stationary. Ordering cost is $ 2.00 and an
(1)-P9-9-(Statement and Note Disclosure, LCM, and Purchase commitment) Garth Brooks Specially Company, a division of Fresh Horses Inc., manufactures three models of gear shift components for bicycles that are sold to bicycle manufactures, retailers, and catalog outlets. Since beginning operations in 1975, Brooks has used norm
Peacock Company is a wholesaler of soft goods. The inventory is composed of approximately 3,500 different items. The company employs a computerized batch processing system to maintain its perpetual inventory records. The system is run each weekend so the inventory reports are available on Monday morning for management use. The s
Seismic Testing is involved in the business of testing subterranean areas for the presence of oil and other minerals. In its business, it uses a highly specialized and very dangerous explosive to generate the subterranean sound ways that it interprets to determine what is underground in a specific area. Because the explosive it
Does working capital management also include the turnover of A/R, inventory and payables?
First City Bank orders cash from the Federal Reserve Board to meet daily transaction needs. Linda Davis, the operations manager, estimates that $5,000,000 in cash will be needed next month. She has estimated that the cost to order, receive, and store each shipment of cash from the Federal reserve Board will be $675 per shipmen
Jan Kottas is the owner of a small company that buys and resells electric knives used to cut fabric. The annual demand is for 8,000 knives, and Jan is currently buying from Knives-R-Us. The ordering cost is $100 per order. The carrying cost per year is 4% of the acquisition cost of the knife, which is $20.00. a) Using the
Determine the quarterly production rate required to meet total demand for the year, without resorting to backorders or stockouts. Use the level-inventory strategy that minimizes the anticipation inventory that would be left over at the end of the year. Beginning inventory is zero.
The Donald Fertilizer Company produces industrial chemical fertilizers. The projected manufacturing requirements( in thousands of gallons) for the next four quarters are 80, 50,80 and 130 respectively. Stockouts and backorders are to be avoided. A level-inventory production strategy is desired. a) Determine the quarterly pro
The Bawl Corporation supplies alloy ball bearings to auto manufacturers in Detroit. Because of its specialized manufacturing process, considerable work-in-process and raw materials are needed. The current inventory levels are $2,470,000 and $1,566,000, respectively. In addition, finished goods inventory is $1,200,000 and sales (at cost) for the current year are expected to be about 48 million.
The Bawl Corporation supplies alloy ball bearings to auto manufacturers in Detroit. Because of its specialized manufacturing process, considerable work-in-process and raw materials are needed. The current inventory levels are $2,470,000 and $1,566,000, respectively. In addition, finished goods inventory is $1,200,000 and sales (
Why are consigned goods not included in the physical inventory? Why would goods not present be determined in inventory? What impact does FOB shipping point and FOB destinations have on revenue recognition? Find a company, and find if this company uses FOB shipping point or FOB destination. Explain why a company would choose one
Stock-Rite, Inc is considering the use of ABC analysis to focus on the most critical items in its inventory. For a random sample of eight items, the following table shows the item's unit value and annual demand. Categorize these items as A, B and C classes. Item code Unit value Demand(unit) A104 $40.25 80 D205 80.75 12
As inventory manager, you must decide on the order quantity for an item that has an annual demand of 2,000 units. Placing an order costs you $20 each time. Your annual holding cost, expressed as a percentage of average inventory value, is 20%. Your supplier has provided the following price schedule: minimum order quantity
Suppose the actual demand is 60 bags but that ordering cost are cut to only $6 by using the internet to automate order placing. However the buyer does not tell anyone, and the EOQ is not adjusted to reflect this reduction in S. How much higher will total costs be, compared to what they could be if EOQ were adjusted?
Sam's Cat Hotel operates 52 weeks per year,6 days per week and uses a continuous review inventory system. It purchases kitty litter for $11.70 per bag. The following information is available about these bags. Demand= 90bags/week Order COst= $54/order Annual holding cost= 27% of cost desired cycle-service level = 80% lead ti