Process Costing - Weighted Average Method The Malbim Company uses a process costing system and adds materials at the beginning. July 1st has 400 units in the beginning inventory (100% materials). The units in beginning inventory (July 1) are only 75% complete on conversion costs (labor and OH). During July, 10,000 units were
1. Auditors must decide, based on cost considerations, whether to test the design effectiveness or operating effectiveness of controls. 2. Inquiry alone provides sufficient evidence to support the operating effectiveness of a control.
Develop cost function estimates for Netflix and Blockbuster using : Account classification High-low Regression analysis methods In your opinion, which method best estimates cost functions for both Netflix and Blockbuster? Explain. Which of Netflix's or Blockbuster's costs might you appropriately estimate using the acco
1. Why is cost allocation imprecise?? Pick one of the different methods we can use, describe it and the pluses and minuses of that method? 2. The master budget contains three types of budgets. What do you think is the cornerstone (or most critical element) of the master budget? Discuss why? 3. Fundamental to the decis
What are cost drivers, and what are Netflix's cost drivers?
Collect and analyze two newspaper or magazine articles relation to management accounting issues. The analysis should include: 1. What specific managerial accounting concepts were discussed or addressed 2. Demonstrate an understanding of the concepts 3. Demonstrate why this article is a good example of the concept You
As a financial analyst, you have just been handed the 2012 financial report of Firm A, a large, global pharmaceutical company. Firm A competes in both traditional pharmaceutical products and in evolving biotechnology products. The following data (in billions) on Firm A and the pharmaceutical industry are available. Firm A
Review SOX mandates, and determine what protections are currently in place to protect whistle-blowers. Take a position on whether more employees would be willing to blow the whistle on corporate misbehavior due to the provisions for whistle-blowers within SOX. Recommend at least two additional mandates and sanctions that would e
As a production manager, one of your key tasks is to improve efficiencies by either increasing productivity or reducing cost. Determine whether the responsibility reports needed to track performance should be created by department, function, or manager, using a costing method of your choice. Based on the costing method you selec
See the attached file. Y=$9,000/week + ($6 x direct labor hours); R^2=.10 Y=$20,000/week + ($14 x number of boards completed); R^2=.40 Y=$5,000/week + ($350 x average cycle time); R^2=.80 1. Which of the support cost functions would you expect to be the most reliable for explaining and predicting support costs? Why?
You have been approached by a potential customer who could bring considerable business. She says, "I'd like to find an alternative vendor for my future orders of 5,000/yr, but their pricing to me must be competitive." Your CFO has supplied you with the following information. Current product standard costs are as follows: $
Scenario You have been asked by the top leadership in your organization to develop a PowerPoint presentation on how the business is doing relative to the previous year. This will include a comparison of the following for this fiscal year and the previous fiscal year: - Employee turnover numbers - Sales - Profits - Expense
1. An economist estimated that the cost function of a single product is C(Q)= 50 +25Q+30Q SQUARED+5Q CUBED Based on this information determine: a. The fixed cost of producing 10 units of output. b. The variable cost of producing 10 units of output. c. The total cost of producing 10 units of output. d. The average fixed cos
Farragut, Inc., uses activity-based costing to account for its chrome bumper manufacturing process. Company managers have identified four manufacturing activities: materials handling, machine setup, insertion of parts, and finishing. The budgeted activity costs for 2010 and their allocation bases are as follows: Activity Tot
Please explain the various ways of determining the cost of capital and determining which is the most difficult to get right.
Last year, Vera Corporation budgeted for production and sales of 20,000 cloth handbags. Vera produced and sold 19,250 handbags. Each handbag has a standard requiring 4 feet of material at a budgeted cost of $2.50 per foot and 45 minutes of sewing time at a cost of $0.28 per minute. The handbags sell for $45.00. Actual costs for
Please find the questions below the hints Hints for completing the harder questions: Problem 31 is a challenging problem that will call on all of your analytical skills. Remember that this perpetual bond is treated as debt for tax purposes. That means that the cost, kp, will be net of the tax considerations (1 - t), jus
Cost System Choices, Budgeting, and Variance Analyses for Sacred Heart Hospital Two Cost Systems Sacred Heart Hospital (SHH) faces skyrocketing nursing costs, all of which relate to its two biggest nursing service lines - the Emergency Room (ER) and the Operating Room (OR). SHH's current cost system assigns total nursing c
Maple, Inc. manufactures syrup that goes through three processing stages prior to completion. Information on work in the first department, Blending, is given below for August: Production data: Pounds in process, August 1; materials 100% complete; conversion 70% complete 3,000 Pounds started into production during Augus
Problem #1 Powertime, Inc., produces and sells electric lawn mowers for $250 each. The variable costs of each mower total $160 while total monthly fixed costs are $22,500. Current monthly sales are $100,000. The company is considering a proposal that will increase the selling price by 10%, increase total fixed costs by
A company is considering additional final inspection costs of $1 per unit before delivery to customers. It currently delivers 60,000 units per year. The additional inspection should reduce the defective rate from 3 percent to 1 percent. If a defective unit is found, it is scrapped at no additional cost. The manufacturing cos
An insurance company has the following profitability analysis of its services. There are no services or divisions other than what is stated below: ...................................Life Insurance............Auto Insurance............Home Insurance Revenues.....................$5,000,000................$10,000,000.............
Please help me with the True/False study guide for test review. 1. The cost of production report reports the cost of the goods sold. a. True b. False 2. In a process costing system, a separate work in process inventory account is maintained for each customer's job. a. True b. False 3. Process cost systems use
The following data relate to the operations of Picanuy Corporation, a wholesale distributor of consumer goods: Current assets as of December 31: Cash $ 6,000 Accounts receivable $36,000 Inventory $9,800 Buildings and equipment, net $110,885 Accounts payable $32,550 Capital stock $100,000 Retained earnings $30,1
Jack's Outdoor World is a company that manufactures and sells garden furniture. They have been operating for the past ten years and have a comfortable share of the market. The company has four divisions, namely the garden shed division, the outdoor table division, the outdoor chair division and the garden swing division. Jack
The following information provides the amount of cost incurred in May for the cost items indicated. During May 16,000 units of the firm's single product were manufactured. Raw materials $83,200 Factory depreciation expense 81,000 Direct labor 198,400 Production supervisor'
Need some assistance with these calculations and three questions. I would like to know if this account is positive and if it is going in a positive or negative direction. 1. How would you describe Warf Computers' cash flows? 2. Which cash flow statement more accurately describes the cash flows at the company? 3. In lig
Differential Analysis-knowing which costs are relevant etc. Lewis company: production and sales information for Lewis Company. Product information Prod B Beginning inventory 0 Units produced 10,000 Units sold 9,000 Selling price per unit $300 Variable costs per unit Direct ma
1. Bartlett Company is considering a new product, Pear. Bartlett's fixed costs are $200,000. Pear's contribution margin is $200 per unit. Bartlett has a marginal tax rate of 25%. How many units of Pear would Bartlett have to sell to have after-tax net income of $1,000,000? a. 2,250 units b. 4,750 units c. 5,000 units d. 7,
The Itagi Computer Company From Japan is looking to build a factory for making CD-ROM's in the United States. The company is concerned about the safety and well-being of its employees and wants to locate in a community with good schools. The company also wants the factory to be profitable and is looking for subsidies from poten