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Management Accounting

Managerial Accounting

Grisim Catering uses activity-based costing for its overhead costs. The company has provided the following data concerning the activity rates in its activity-based costing system: Preparing Arranging Activity Cost Pools Meals Functions Wages 0.75 175.00 Supplies 0.50 280.00 Other expenses 0.35 130.00

Managerial Accounting - Activity Rate

Laguna Corporation has provided the following data concerning its overhead costs for the coming year: Wages and salaries 260,000 Depreciation 100,000 Rent 180,000 Total 540,000 The company has an activity-based costing system with the following three activity cost pools and estimated activity for the coming

Managerial Accounting

In activity-based costing, all manufacturing costs must be included in product costs. True False

Managerial Accounting

Njombe Corporation manufactures a variety of products. In the past, Njombe has been using a traditional costing system in which the predetermined overhead rate was 150% of direct labor cost. Selling prices had been set by multiplying total product cost by 200%. Sensing that this system was distorting costs and selling prices, Nj

Managerial Accounting

Company X sold 25,000 units of product last year. The contribution margin per unit was 2, and fixed expenses totaled 40,000 for the year. This year fixed expenses are expected to increase to 45,000, but the contribution margin per unit will remain unchanged at 2. How many units must be sold this year to earn the same net operati

Managerial Accounting

A company that makes organic fertilizer has supplied the following data: Bags produced and sold 240,000 Sales revenue 1,896,000 Variable manufacturing expense 804,000 Fixed manufacturing expense 520,000 Variable selling and administrative expense 180,000 Fixed selling and administrative expense 270,000

Indicate the cost category to which the item belongs.

Please look this over and let me know what you think. The company intends to classify these costs and expenses into the following categories: (a) direct materials, (b) direct labor, (c) manufacturing overhead, and (d) period costs. Instructions List the items (1) through (10). For each item, indicate the cost category t

Accounting Managerial

The management of Casablanca Manufacturing Corporation believes that machine-hours is an appropriate measure of activity for overhead cost Shown below are machine-hours and total overhead costs for the past six months: Machine- Overhead Hours Cost Jan 150,000 339,000 Feb 140,000 328,000 Mar 160,000 350,0

Accounting Managerial

If the activity level increases, then one would expect the variable cost per unit to increase as well. True False

The Cost Per Equivalent Unit

Gunes Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in beginning inventory were: Cost Percent Complete Materials costs 10,600 65% Conversio

Basic Acct Questions

Here are account balances as of December 31, 2003: Cash - $12,000 Accounts Payable - $24,000 Accounts Receivable - $50,000 Salary Payable - $5,000 Trust Account - $40,000 Insurance - $1,000.00 Inventory - $10,000 Accumulated Depreciation - $4,200 Depreciation Exp - $4,800 Notes Payable - $5,000 Retained Earnings - $

Accounting Managerial

Compute the Predetermined Overhead Rate [LO] Harris Fabrics computes its predetermined overhead rate annually on the basis of direct labor hours. At the beginning of the year it estimated that its total manufacturing overhead would be $134,000 and the total direct labor would be 20,000 hours. Its actual total manufacturing overh

Managerial Accounting

Product Cost Flows; Product versus Period Costs [LO2, LO3] The Devon Motor Company produces motorcycles. During April, the company purchased 8,000 batteries at a cost of $10 per battery. Devon withdrew 7,600 batteries from the storeroom during the month. Of these, 100 were used to replace batteries in motorcycles used by the com

Accounting Managerial

Preparation of a Schedule of Cost of Goods Manufactured and Cost of Goods Sold [LO1, LO3, LO4] The following cost and inventory data are taken from the accounting records of Mason Company for the year just completed: Costs incurred: Direct labor cost $70,000 Purchases of raw materials $118,

Managerial accounting

Classification of Costs as Fixed or Variable [LO5] Below are a number of costs that are incurred in a variety of organizations. Required: Classify each cost as being variable or fixed with respect to the number of units of product or services sold by the organization. Cost Behavior Cost ------------

Managerial accounting

Exercise 2-4: Prepare a Schedule of Cost of Goods Manufactured [LO4] Lompac Products manufactures a variety of products in its factory. Data for the most recent month's operations appear below: Beginning raw materials inventory $60,000 Purchases of raw materials $690,000 Ending raw materials inventory $45,000

Managerial accounting

Preparation of a schedule of costo goods Manufactured and cost goods sold. The following cost and inventory data for the just completed year are taken from the accounting records of eccfles company: Cost incurred: Advertising Expense:..............................$100,000 Direct labor cost..............................

Managerial accounting

A company purchased a trunk on Jan 1, 2002 for $40,000. The truck has an estimated life of 6 years and an estimated residual value of $4,000. The company used the straight-line method to depreciate the asset. On July 1, 2004, the truck was sold for $14,000 csh. What's the gain or loss on the sale?

Managerial accounting: Insurance Expense

Please help with the following problem. Stone Works Tile Shop purchased two years of insurance coverage for its retail shop on July 1, 2004 iao of $3,600. Stone Works recorded the prepayment as an asset. Stone Works prepares its adjusting entries at year end December 31. What adjusting journal entry is necessary at Dec 31

Cost-allocation problem

The pizza parlor manager, Joe, purchases $100 rack to hold small bag of peanuts. The bag costs 24c, Joe will sell it for 40c. If he sells 50 bags a week, it will take him 12 1/2 weeks to cover the cost of bag. After that Joe thinks he will have clear profit of 16c a bag. Cost-allocation experts tell Joe that this rack is cos

Working Capital and Short-Term Financing Techniques

22. What is the cash conversion cycle for a firm with a receivables period of 40 days, a payables period of 30 days, and an inventory period of 60 days? A) 10 days B) 50 days C) 70 days D) 130 days 23. What is the cash conversion cycle for a firm with $3 million average inventories, $1.5 million average account

Cost per session, target price, ROI

Please see the attached file. --- Roxy's Recording Studio rents studio time to musicians in 2-hour blocks. Each session includes the use of the studio facilities, a digitally recorded tape of the performance, and a professional music producer/mixer. Anticipated annual volume is 1,000 sessions. The company has invested $2,

Cost per unit, target selling price

Please see the attached file. --- Selleck Corporation makes a commercial-grade cooking griddle. The following information is available for Selleck Corporation's anticipated annual volume of 30,000 units. Per Unit Total Direct materials $17 Direct labor $ 8 Variable manufacturing overhead $11 Fixed man

4 managerial accounting questions

Chocolate Candies Company produces chocolate candy in large quantities. They have two departments, a Mixing department and a Packaging department. The manufacturing costs in the Mixing department during December were: Direct Materials Added $

Activity cost pools, cost driver

Please see the attached file. --- Galavic Corporation manufactures snowmobiles in its Blue Mountain, Wisconsin plant. The following costs are budgeted for the first quarter's operations. Machine setup, indirect materials $ 4,000 Inspections 16,000 Tests 4,000 Insurance, plant 110,000 Engineering design

Managerial Accounting Exercises / Problems

Please refer to attached Word Document for Instructions. --- Problem 1. The following monthly budgeted data are available for a wholesale company: Product L Product Z Product C Sales $400,000 $200,000 $800,000 Variable expenses 240,000 140,000 640,000 Contribution margin $160,000 $ 60,000 $160,000

Acme Corp is a company in Florida...

Acme Corp is a company in Florida. Management is concerned because as their sales have grown, their cash flow has shrunk. Management doesn't understand how this could happen and has approached your team to find a solution for this dilemma. Part I Calculate the following: (from attached excel doc) 1. Inventory conversion per

Cash Conversion Cycle

Cash conversion cycle Problem . Kolan Inc. has annual sales of $36,500,000 ($100,000 a day on a 365-day basis). On average, the company has $12,000,000 in inventory and $8,000,000 in accounts receivable. The company is looking for ways to shorten its cash conversion cycle (calculated on a 365-day basis)

Cost Management Systems - Peoria Implements

Peoria Implements Company produces farm implements. Peoria is in the process of measuring its manufacturing costs and is particularly interested in the costs of the manufacturing maintenance activity, since maintenance is a significant mixed cost. Activity analysis indicates that maintenance activity consists primarily of main