Attached you will find the practice exercises (2 pgs). Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows: Standard Quantity Standard Price o
See attached file for clarity. Victoria Chocolates, Ltd., makes premium handcrafted chocolate confections in London. The owner of the company is setting up a standard cost system and has collected the following data for one of the company's products, the Empire Truffle. This product is made with the finest white chocolate and
Essay Questions 1. Describe the four steps in the control process. Which step is the most important and why do you take that position? Where have you seen this step used improperly, or where could this step, if mishandled, be disastrous. What industry or field? Explain. 2. Discuss the three primary types of controls, the pur
Recently, your company has had issues with missing or unorganized documents in employee files. You have asked your intern to sort through all the employee files and make sure that all documents are in the proper folders. * To assist the intern, construct a guide that lists which documents are to be filed together and whic
See attached file for additional data. Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for each department. The planning budget and flexible budget for the Production Department are based on the following formulas, where q is the number of
1. The term "cost" means: a. the price paid for a raw material. b. the wage paid to a worker. c. the price charged by an entity for its services. d. all of the above. 2. Direct costing may be used for: a. internal reporting purposes. b. external financial reporting purposes. c. income tax reporting purposes. d
Preference shares issued: Nominal value per share R 500 Issued at a discount of 4% Dividend rate 13% per annum Tax rate 28% Dividends are paid annually in arrears. What is
1. Demand Analysis. Aspen, Colorado is engaging in a bumper-sticker advertising campaign. Monthly sales data from ski shops selling the "Don't Worry-Be Happy (in Aspen)" bumper-stickers indicate that: Q = 6,000 - 2,000P where Q is bumper-sticker sales and P is price. A. How many bumper-stickers could Aspen sell at
Consider the following scenario and provide assistance: The Ski Pro Corporation, which produces and sells to wholesalers a highly successful line of water skis, has decided to diversify to stabilize sales throughout the year. The company is considering the production of cross-country skis. After considerable research, a cr
On May 31, 2007, Dell Inc. announced it was making several changes to the way it did business in order to restore competitiveness to the core business, re-ignite growth, and build solutions critical to customer needs. As one of the changes the company: Initiated a comprehensive review of costs across all processes and organiz
Coffee Mill Inc. has calculated its inventory conversion period as 53 days, its accounts receivable collection period as 40 days, and its accounts payable deferral period as 20 days. Coffee Mill's working capital financing needs average $50,000 per day. (a) Calculate Coffee Mill's Cash Conversion Cycle. (b) If Coffee Mi
Gridiron Merchandising anticipated selling 27,000 units of a major product and paying sales commissions of $6 per unit. Actual sales and sales commissions totaled 27,500 units and $171,400, respectively. If the company used a flexible budget for performance evaluations, Gridiron would report a cost variance of _________?
OmniSport Inc is a wholesale distributor supplying a wide range of moderately priced sporting equipment to large chain stores. OminSport has an enviable reputation for quality of its products. In fact, the demand for its products is so great that at times OmniSport cannot satisfy the demand and must delay or refuse some orders,
One way to own your own fitness business is to buy a franchise. Snap Fitness is a Minnesota-based business that offers franchise opportunities. For a very low monthly fee ($26, without an annual contract) customers can access a Snap Fitness center 24 hours a day. The Snap Fitness website (www.snapfitness.com) indicates that star
Control systems in nonprofit organizations will never be as highly developed as in profit-seeking organizations. Do you agree or disagree? Give three reasons why. Define economic value added (EVA) and describe three ways a company can improve its EVA. Is EVA beneficial, if so, why? If not, why not? What is the major be
See the attached file. Allocations for estimating capacity costs (LOI). Color Graphics (CG) specializes in printing glossy magazines. CG currently has orders for four magazines, with each magazine being issued on its own cycle. With the four magazines, CG's capacity is 100% utilized from Thursday through Sunday, every week. The
Joint costs should not be allocated to individual products for decision purposes. For what purposes are such costs allocated to products? Briefly explain each of the two conventional ways of allocating joint costs of products.
See the attached file. Tami Tyler opened Tami's Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler's personal finances. The following income statement for the first quarter was prepared by a friend wh
Whitman Company has just completed its first year of operations. The company's absorption costing income statement for the year appears below: Please see the attachment for better layout. Whitman Company Income Statement Sales (39,000 units Ã? $44.6 per unit) $1,739,400 Cost of goods sold (39,000 units Ã? $21 p
Discuss the issues that must be taken into consideration when setting selling prices, which is the usual reason given for the need to know the full cost.
Beta Company produces two products, A and B, each of which uses materials X and Y. The following unit standard costs apply: Product A: Material X = 4 lbs @ $13, Material Y = 1 lb. @ $8.50, Direct Labor = 1/5 hr. @ $14 Product B: Material X =6 lbs @ $13, Material Y = 2 lbs @ $8.50, Direct Labor = 1/3 hr. @ $14 During N
Question 18 Which of the following statements is CORRECT? a. Other things held constant, it is better to have a relatively short than a relatively long cash conversion cycle. b. Other things held constant, it is better to have a relatively long than a relatively short cash conversion cycle. c. Other things held constant,
Desai Inc. has the following data, in thousands. Assuming a 365-day year, what is the firm's cash conversion cycle? Annual sales = $45,000 Annual cost of goods sold = $30,000 Inventory = $4,500 Accounts receivable = $1,800 Accounts payable = $2,500 a. 28 days b. 32 days c. 35 days d. 39 days e. 43 days
Put it into Excel with the correct formulas. Garrett Industries turns over its inventory 6 times each year, it has an average collection period of 45 days and an average payment period of 30 days. The firm's annual sales are $3 million. Assume there is no difference in the investment per dollar of sales in inventory, receivab
What is the accounting concept to explain how a 3% decline in sales could cause a 21% decline in profits. Also, discuss the effect of declining sales on an organization's margin of safety.
The Hershey Corporation: http://library.corporate-ir.net/library/11/115/115590/items/283950/10K_Hershey.pdf In Hershey's 2007 annual report, the management made this claim: a decrease in inventories in 2007 reflecting lower raw material and goods in process inventories resulting from reduced manufacturing requirement
Planning is far more important than day to day control of discretionary costs. Do you agree or disagree? Discuss how planning and day-to-day control of discretionary costs may impact business decisions differently.
Sunshine Oil Company buys crude vegetable oil. Processing this oil results in four products at the split off points: A, B, C, and D. Product C is fully processed at the split off point. Products A, B, and D can be individually further processed into A Plus, B Plus, and D Plus. In the company's most recent month (November),
Can you help me get started on this problem? Thank you! Amfac Company manufactures a single product. The company keeps careful records of manufacturing activities from which the following information has been extracted: ** Table with proper format is attached ** Level of Activity March - Low June - High Num
Activity Based Costing. Identify activity cost drivers. Compute overhead rates and assign overhead using ABC. Write a memorandum explaining the benefits of ABC.
E4-10 Anna Bellatorre, Inc. manufactures five models of kitchen appliances at its Mesa plant. The company is installing activity-based costing and has identified the following activities performed at its Mesa plant. 1. Designing new models. 2. Purchasing raw materials and parts. 3. St