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Management Accounting

5 Managerial Accounting Problems

See attached file for clarity. 1. The manager of MN Company give you the following data to prepare the required purchases for the coming three months (January, February and March) Estimated sales for January $ 100,000 Sales increase by 5% for the coming three months Cost of goods sold (CGS) 60% of sales Beginning i

Traditional costing approach

Gayle Enterprises produces computer equipment and programs for heavy equipment manufacturers. One of the most important parts of the company's new just-in-time production process is quality control. Initially, a traditional cost accounting system was used to assign quality control costs to products. All of the costs of the Qua

Managerial accounting

18. Under a relevant range of production, the production has a. minimum quantities that cannot exceed b. maximum quantities that cannot exceed c. minimum and maximum quantities that cannot exceed d. no minimum or maximum quantities 24. Hanna Company has the following data Year Operating p

Cost structure of manufacturing companies has shifted: Identify types of costs

See attached file. 1. Over the past few decades, the cost structure of manufacturing companies has shifted. In the early 1900s, direct material costs were substantial while fixed costs represented a small fraction of total manufacturing costs. However, the cost structure has reversed and now fixed costs make up the majority

Kellogg Company Convenience Foods Annual Report

1. (TCO 1/3) Kellogg Company and its subsidiaries are engaged in the manufacture and marketing of ready-to-eat cereal and convenience foods. In its annual report to shareholders, Kellogg disclosed the following: DISPOSITIONS Last year, the Company sold certain assets and liabilities of the Lender's Bagels business to Aurora

Managerial accounting - Incremental Analysis (Rustic Interiors)

(3) Exercise 7-4 / Incremental Analysis Rustic Interiors, an interior design company, has experienced a drop in business due to an increase in interest rates and a corresponding slowdown in remodeling projects. To stimulate business, the company is considering exhibiting at the Middleton Home and Garden Expo. The exhibit will c

P6-6 Allocating Service Department Costs for World Airlines

World Airlines has three service departments: (1) ticketing, (2) baggage handling, and (3) engine maintenance.The service department costs are estimated for separate cost pools formed by department and are allocated to two revenue-producing departments: (1) domestic flights and (2) international flights.World does not differenti

Total Fixed Cost

Barker Company's break-even point is 10,000 units. It's product sells for $25 and has a $10 variable cost per unit. What is the company's total fixed cost amount? a. $ 250,000 b. $100,000 c. $150,000 d. Fixed costs cannot be computed with the information provided

Managerial Accounting: Excess Capacity

Mission Roofing performs roofing services for commercial clients. The company recently submitted a bid of $371,000 to the Shawnee School System, computed as follows: Mission adds a 20% profit margin to all jobs, computed on the basis of total direct cost. In Shawnee's case the profit margin amounted to $50,000 ($250,000

Allocating the Costs of Shared Facilities

Cool Surfboards has two departments that both use a conference room (shared facilities). Total monthly conference room cost is $1,000. The Wave Blaster department has 15 employees that reserved 60 hours of conference room time. The Boogie Break department has 5 employees that reserved 100 hours of conference room time. a

Calculate Car Manufacturing Plant Problem

See the attached file. Calculate Car Manufacturing Plant Problem ? Calculate the overhead allocation rate (i.e. burden rate) for each of the model years 1988 through 1990. 1987 1988 1989 1990 Sales Fuel Tanks 70,278 75,196 79,816 83,535 Manifolds 79,459 84,776 89,323 93,120 Doors 41,845 45,174 47,199 49,887 Muff

Custom Computers: Compute the total cost function and total cost for the month

3-39 Account Analysis Custom Computers is a company started by two engineering students to assemble and market personal computers to faculty and students. The company operates out of the garage of one of the students' homes. From the following costs of a recent month, compute the total cost function and total cost for the mon

Step-Down Cost Analysis

Cost Analysis Problem Problem: The Downtown Clinic is a 50,000 sq. ft., inner-city primary care facility with a total annual budget of $1.7 million. However, it is losing its Federal and State grants, and must become self-sufficient to survive. It must now compete for paying customers with other providers, and must enter

Managerial Accounting Practices/Costing

Write up to 3 paragraphs that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas: Following your interviews, which you passed with flying colors, you were offered a p

Managerial Accounting Review: 5 multiple choice questions

Managerial Accounting Review 1. Joe's Bagel Shop has total costs of $7,000 when 3,500 units are produced and $10,500 when 7,000 units are produced. What is the total fixed cost? A. $7,000 B. $3,500 C. $10,500 D. $0 2. Total costs at the Pisces Fish House were $75,800 when 30,000 units were produced and $95,800 when

Managerial Accounting: Electron Company

1.) Electron Company manufactures an innovative automobile transmission for electric cars. Management predicts that ending inventory for the first quarter will be 35,800 units. The following unit sales of the transmissions are expected during the rest of the year: second quarter 221,000 units; third quarter, 497,000 units; and

Management vs. Finacial Accounting Mangers' Use of Info

Management vs financial accounting and mangers' use of information: The following statements consider how managers use information. a. Companies must follow GAAP in their ____ systems. b. Financial accounting develops reports for external parties, such as ____and ___ c. When managers compare the company's actual results

Probelms associated with cost allocation.

Custom metal works received an offer from a big box retailer company to purchase 3000 metal outdoor tables for $200 each, Custom metal works accountants determine that the following costs apply to the tables. Direct material 100 direct labor 45 Manufacturing overhead 70 total 215 Of the $70 of overhead, $14 is variabl

MANAGERIAL ECONOMICS AND THE U.S. AUTOMOBILE INDUSTRY

Automakers came to Washington in late 2008 asking for Federal financial aid to avoid bankruptcy. Their reception was chilly, but aid was provided and bankruptcy occurred except for Ford. Assume you are the CEO of any one of the Big Three and discuss with your colleagues how you would turn your firm around. Make your arguments as

Alternative performance measure to manager of plant A happier

A soft drink company has three bottling plants throughout the country. Bottling occurs at the regional level because of the high cost of transporting bottled soft drinks. The parent company supplies each plant with the syrup. The bottling plants combine the syrup with carbonated soda to make and bottle the soft drinks. The bottl

Managerial Accouting

1.The comparison of actual outcomes with desired outcomes is an example of a(n): Answer A) planning activity. B) control activity. C) operating activity. D) static activity. 2.Which type of activity includes ensuring that the objectives and goals developed by the organization are being attained? Answer

Estimating costs: Is it avoidable? Desirable? Needed? Harmful?

Read the Reality Bytes section on p. 797 in Fundamental Financial & Managerial Accounting Concepts (see below). For what other business decisions may it be impossible to calculate the actual cost? What are some of the dangers of basing decisions on estimated rather than actual costs? How might these dangers be minimized?

Capacity and product mix decision

6-36 Capacity and product mix decision Barney Toy Company manufactures large and small stuffed animals. It has a long-term contract with a large chain of discount stores to sell 3,000 large and 6,000 small stuffed animals each month. The following cost information is available for large and small stuffed animals. Item Lar

Special Orders

Sherene Nili manages a company that produces wedding gowns. She produces both a custom product that is made to order and a standard product that is sold in bridal salons. Her accountant prepared the following forecasted income statement for March, which is a busy month: Custom

Managerial: Golf Specialties; Montana Pen; Negative Opportunity Costs; Max stores

P 1-8 Golf Specialties Golf Specialties (GS), a Belgian company, manufactures a variety of golf paraphernalia, such as headcovers for woods, embroidered golf towels, and umbrellas. GS sells all its products exclusively in Europe through independent distributors. Given the popularity of Tiger Woods, one of GS's more popular item

Managerial Accounting: Master Budgeting

Mainline moving company specializes in hauling heave foods over long distances. The company's revenues and expenses depend on revenue miles, a measure that combines both weights and mileage. The summarized budget data for next year are based on predicted total revenue miles of 800,000. At that level of volume, and at any level

Managerial accounting: Cost flows, cost of goods manufactured, WIP

Green Company's costs for the month of August were as follows: direct materials, $27,000; direct labor, $34,000; selling, $14,000; administrative, $12,000; and manufacturing overhead, $44,000. The beginning work in process inventory was $16,000 and the ending work in process inventory was $9,000. What was the cost of goods manuf

Important information about Joint cost allocation

Show and explain all calculations. A seafood business purchases lobsters and processes them into tails and flakes. It sells the lobster tails for $21 dollars per pound and the flakes for $14 per pound. On average, 100 pounds of lobster are processed into 52 pounds of tails and 22 pounds of flakes, with 26 pounds of waste. Assu