New Semester Started Get 50% OFF Study Help! --h --m --s Claim Now

Question Answers

Textbooks

Find textbooks, questions and answers

Oops, something went wrong!

Change your search query and then try again

Result Not Found

Books FREE
Study Help
Tutors
AI Study Planner NEW
Sell Books

Search
Sign In
Register

study help
business
managerial accounting

Accounting Principles 10th Edition Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso - Solutions

Raphael Ochoa is puzzled. His company had a profit margin of 10% in 2012. He feels that this is an indication that the company is doing well. Cindy Lore, his accountant, says that more information is needed to determine the firm’s financial well-being. Who is correct? Why?
You are considering investing in Shawnee Transportation. The company reports 2012 earnings per share of $6.50 on income before extraordinary items and $4.75 on net income. Which EPS figure would you consider more relevant to your investment decision? Why?
You recently received a letter from your Uncle Jimbo. A portion of the letter is presented below. You know that I have a significant amount of money I saved over the years. I am thinking about starting an investment program. I want to do the investing myself, based on my own research and analysis
Abigail Naismith Corporation reported the following amounts in 2011, 2012, and 2013. Instructions(a) Identify and describe the three tools of financial statement analysis.(b) Perform each of the three types of analysis on Abigail Naismith's currentassets.
Using the following data from the comparative balance sheet of Doabe Company, illustrate horizontalanalysis.
If Vansittart Company had net income of $585,000 in 2013 and it experienced a 30% increase in net income over 2012, what was its 2012 net income?
Horizontal analysis (trend analysis) percentages for Algy Company?s sales, cost of goods sold, and expenses are shown below. Did Algy?s net income increase, decrease, or remain unchanged over the 3-year period?
Selected condensed data taken from a recent balance sheet of Evangelista Inc. are as follows.EVANGELISTA INC.Balance Sheet (partial)Cash..............$ 8,041,000Short-term investments........4,947,000Accounts receivable........12,545,000Inventory.............14,814,000Other current
Constantine Corporation has net income of $11.44 million and net revenue of $80 million in 2012. Its assets are $14 million at the beginning of the year and $18 million at the end of the year. What are Constantine’s (a) Asset turnover and (b) Profit margin?
The following data are taken from the financial statements of Morganstern Company. (a) Compute for each year (1) the receivables turnover and (2) the average collection period. At the end of 2011, accounts receivable (net) was $480,000.(b) What conclusions about the management of accounts
The following data are from the income statements of Davros Company. (a) Compute for each year (1) the inventory turnover and (2) the average days to sell the inventory.(b) What conclusions concerning the management of the inventory can be drawn from thesedata?
Boe Company has owners’ equity of $400,000 and net income of $66,000. It has a payout ratio of 20% and a rate of return on assets of 15%. How much did Boe pay in cash dividends, and what were its average assets?
An inexperienced accountant for Nerys Corporation showed the following in the income statement: income before income taxes and extraordinary item $400,000, and extraordinary loss from flood (before taxes) $70,000. The extraordinary loss and taxable income are both subject to a 30% tax rate. Prepare
On June 30, Malohkeh Corporation discontinued its operations in Europe. During the year, the operating loss was $300,000 before taxes. On September 1, Malohkeh disposed of its European facilities at a pretax loss of $120,000. The applicable tax rate is 30%. Show the discontinued operations section
Summary financial information for Talulah Company is as follows. Compute the amount and percentage changes in 2013 using horizontal analysis, assuming 2012 is the baseyear.
The condensed financial statements of Ifeachor Company for the years 2011 and2012 are presented below. Compute the following ratios for 2012 and 2011.(a) Current ratio.(b) Inventory turnover. (Inventory on 12/31/10 was $340.)(c) Profit margin ratio.(d) Return on assets. (Assets on 12/31/10 were
In its proposed 2012 income statement, DuToit Corporation reports income before income taxes $500,000, extraordinary loss due to earthquake $150,000, income taxes $200,000 (not including irregular items), loss on operation of discontinued music division $60,000, and gain on disposal of discontinued
Financial information for Sinead Inc. is presented below. InstructionsPrepare a schedule showing a horizontal analysis for 2013 using 2012 as the baseyear.
Operating data for Krystal Corporation are presented below. InstructionsPrepare a schedule showing a vertical analysis for 2013 and2012.
The comparative condensed balance sheets of Monero Corporation are presented below. Instructions(a) Prepare a horizontal analysis of the balance sheet data for Monero Corporation using 2012 as a base.(b) Prepare a vertical analysis of the balance sheet data for Monero Corporation in columnar form
The comparative condensed income statements of Indra Corporation are shown below. Instructions(a) Prepare a horizontal analysis of the income statement data for Indra Corporation using 2012 as a base. (Show the amounts of increase or decrease.)(b) Prepare a vertical analysis of the income
Nordstrom, Inc. operates department stores in numerous states. Selected financial statement data for the year ending January 30, 2010, are shown below. For the year, net sales were $8,258 and cost of goods sold was $5,328 (in millions). Instructions (a) Compute the four liquidity ratios at the
Ganesh Incorporated had the following transactions occur involving current assets and current liabilities during February 2012.Feb. 3 Accounts receivable of $15,000 are collected.7 Equipment is purchased for $28,000 cash.11 Paid $3,000 for a 3-year insurance policy.14 Accounts payable of $12,000
Bella Company has the following comparative balance sheet data. Additional information for 2013:1. Net income was $25,000.2. Sales on account were $410,000. Sales returns and allowances were $20,000.3. Cost of goods sold was $198,000.InstructionsCompute the following ratios at December 31,
Selected comparative statement data for Navin Products Company are presented on the next page. All balance sheet data are as of December 31. InstructionsCompute the following ratios for 2013.(a) Profit margin.(b) Asset turnover.(c) Return on assets.(d) Return on common stockholders'equity.
The income statement for Mary Hatch, Inc., appears below.MARY HATCH, INC.Income StatementFor the Year Ended December 31, 2012Net sales............................$400,000Cost of goods sold...........................230,000Gross profit.............................170,000Expenses (including $16,000
George Bailey Corporation experienced a fire on December 31, 2013, in which its financial records were partially destroyed. It has been able to salvage some of the records and has ascertained the following balances. Additional information:1. The inventory turnover is 3.5 times.2. The return on
Stewart Corporation?s comparative balance sheets are presented below. Stewart?s 2012 income statement included net sales of $100,000, cost of goods sold of $60,000, and net income of $15,000. InstructionsCompute the following ratios for 2012.(a) Current ratio.(b) Acid-test ratio.(c) Receivables
Potter Corporation has income from continuing operations of $290,000 for the year ended December 31, 2012. It also has the following items (before considering income taxes).1. An extraordinary loss of $80,000.2. A gain of $30,000 on the discontinuance of a division.3. A correction of an error in
Comparative statement data for Lionel Company and Barrymore Company, two competitors, appear below. All balance sheet data are as of December 31, 2013, and December 31, 2012. Instructions (a) Prepare a vertical analysis of the 2013 income statement data for Lionel Company and Barrymore Company
The comparative statements of Larker Tool Company are presented below. All sales were on account. Instructions Compute the following ratios for 2013. (Weighted-average common shares in 2013 were 57,000.) (a) Earnings per share. (b) Return on common stockholders? equity. (c) Return on
Condensed balance sheet and income statement data for Clarence Corporation appear below. Additional information:1. The market price of Clarence?s common stock was $4.00, $5.00, and $8.00 for 2011, 2012, and 2013, respectively. 2. All dividends were paid in cash. Instructions(a) Compute the
Financial information for Ernie Bishop Company is presented below. Additional information:1. Inventory at the beginning of 2012 was $118,000.2. Total assets at the beginning of 2012 were $630,000.3. No common stock transactions occurred during 2012 or 2013.4. All sales were on
The comparative statements of Beulah Company are presented below. Additional data:The common stock recently sold at $19.50 per share.InstructionsCompute the following ratios for 2013.(a) Current. (b) Acid-test. (c) Receivables turnover. (d) Inventory turnover. (e) Profit margin. (f) Asset
Presented below is an incomplete income statement and an incomplete comparative balance sheet of Bondi Corporation. Additional information:1. The receivables turnover for 2013 is 10 times.2. All sales are on account.3. The profit margin for 2013 is 14.5%.4. Return on assets is 22% for 2013.5. The
Violet Bick Corporation owns a number of cruise ships and a chain of hotels. The hotels, which have not been profitable, were discontinued on September 1, 2012. The 2012 operating results for the company were as follows.Operating revenues.......$12,850,000Operating
The ledger of Gower Corporation at December 31, 2012, contains the following summary data. Your analysis reveals the following additional information that is not included in the above data.1. The entire puzzles division was discontinued on August 31. The income from operations for this division
Natalie and Curtis have comparative balance sheets and income statements for Cookie & Coffee Creations Inc. They have been told that they can use these financial statements to prepare horizontal and vertical analyses, and to calculate financial ratios, to analyze how heir business is doing and
The Management Discussion and Analysis section of an annual report addresses corporate performance for the year, and sometimes uses financial ratios to support its claims.Steps1. Choose How to read annual reports (in the Guides section).2. Choose Anatomy.InstructionsUsing the information from the
(a) Bill Meyer is not sure about the difference between cost accounting and a cost accounting system. Explain the difference to Bill. (b) What is an important feature of a cost accounting system?
Yuan Li is confused about the source documents used in assigning materials and labor costs. Identify the documents and give the entry for each document
Explain how a “materials requisition slip” is used in a job order cost system.
Pham Hannah believes actual manufacturing overhead should be charged to jobs. Do you agree? Why or why not?
“At the end of the year, under-or over-applied overhead is closed to Income Summary.” Is this correct? If not, indicate the customary treatment of this amount.
Alomar Tool & Die begins operations on January 1. Because all work is done to customer specifications, the company decides to use a job order cost accounting system. Prepare a flow chart of a typical job order system with arrows showing the flow of costs. Identify the eight transactions.
During January, its first month of operations, Alomar Tool & Die accumulated the following manufacturing costs: raw materials $4,000 on account, factory labor $5,000 of which $4,200 relates to factory wages payable and $800 relates to payroll taxes payable, and utilities payable $2,000. Prepare
In January, Alomar Tool & Die requisitions raw materials for production as follows: Job 1 $900, Job 2 $1,200, Job 3 $700, and general factory use $600. Prepare a summary journal entry to record raw materials used.
Factory labor data for Alomar Tool & Die is given in BE20-2. During January, time tickets show that the factory labor of $5,000 was used as follows: Job 1 $1,200, Job 2 $1,600, Job 3 $ 1,400, and general factory use $800. Prepare a summary journal entry to record factory labor used.
Data pertaining to job cost sheets for Alomar Tool & Die are given in BE20-3 and BE20-4. Prepare the job cost sheets for each of the three jobs. (Note: You may omit the column for Manufacturing Overhead.)
Formu Company estimates that annual manufacturing overhead costs will be $800,000. Estimated annual operating activity bases are: direct labor cost $500,000, direct labor hours 50,000, and machine hours 100,000. Compute the predetermined overhead rate for each activity base.
During the first quarter, McKay Company incurs the following direct labor costs: January $40,000, February $30,000, and March $50,000. For each month, prepare the entry to assign overhead to production using a predetermined rate of 90% of direct labor cost.
In March, Samani Company completes Jobs 10 and 11. Job 10 cost $25,000 and Job 11 $30,000. On March 31, Job 10 is sold to the customer for $35,000 in cash. Journalize the entries for the completion of the two jobs and the sale of Job 10.
At December 31, balances in Manufacturing Overhead are: Mair Company-debit $1,500, Gitau Company—credit $900. Prepare the adjusting entry for each company at December 31, assuming the adjustment is made to cost of goods sold.
During the current month, Brady Company incurs the following manufacturing costs:(a) Purchased raw materials of $13,000 on account.(b) Incurred factory labor of $40,000. Of that amount, $31,000 relates to wages payable and $9,000 relates to payroll taxes payable.(a) Factory utilities of $3,100 are
Francisco Company is working on two job orders. The job cost sheets show the following: Prepare the three summary entries to record the assignment of costs to Work in Process from the data on the job cost sheets.
During the current month, Weller Corporation completed Job 310 and Job 312. Job 310 cost $60,000 and Job 312 cost $40,000. Job 312 was sold on account for $90,000. Journalize the entries for the completion of the two jobs and the sale of Job 312.
For FreeFall Company, the predetermined overhead rate is 150% of direct labor cost. During the month, FreeFall incurred $100,000 of factory labor costs, of which $85,000 is direct labor and $15,000 is indirect labor. Actual overhead incurred was $120,000.Compute the amount of manufacturing overhead
The gross earnings of the factory workers for Zorn Company during the month of January are $60,000. The employer’s payroll taxes for the factory payroll are $8,000. The fringe benefits to be paid by the employer on this payroll are $4,000. Of the total accumulated cost of factory labor, 85% is
Tiet Manufacturing uses a job order cost accounting system. On May 1, the company has a balance in Work in Process Inventory of $3,200 and two jobs in process: Job No. 429 $ 2,000, and Job No. 430 $1,200. During May, a summary of source documents reveals the following Tiet Manufacturing applies
A job order cost sheet for Renshaw Company is shown below. Instructions(a) On the basis of the foregoing data answer the following questions.(1) What was the balance in Work in Process Inventory on January 1 if this was the only unfinished job?(2) If manufacturing overhead is applied on the
Manufacturing cost data for Meneses Company, which uses a job order cost system, are presented below. Indicate the missing amount for each letter. Assume that in all cases manufacturing overhead is applied on the basis of direct labor cost and the rate is the same.
Hodgkiss Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $305,000 for the year, and machine usage is estimated at 125,000 hours.For the year, $322,000 of overhead costs are incurred and 130,000 hours are used.Instructions(a)
A job cost sheet of Fenter Company is given below. Instructions(a) Answer the following questions.(1) What are the source documents for direct materials, direct labor, and manufacturing overhead costs assigned to this job?(2) What is the predetermined manufacturing overhead rate?(3) What are the
Cooke Corporation incurred the following transactions.1. Purchased raw materials on account $46,300.2. Raw Materials of $36,000 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $6,800 was classified as indirect materials.3. Factory labor costs
Benton Printing Corp. uses a job order cost system. The following data summarize the operations related to the first quarter??s production.1. Materials purchased on account $ 192,000, and factory wages incurred $87,300.2. Materials requisitioned and factory labor used by job: 3. Manufacturing
At May 31, 2012, the accounts of Contreras Manufacturing Company show the following.1. May 1 inventories—finished goods $12,600, work in process $14,700, and raw materials $8,200.2. May 31 inventories—finished goods $9,500, work in process $17,900, and raw materials $7,100.3. Debit postings to
Forte Company begins operations on April 1. Information from job cost sheets shows the following. Job 12 was completed in April. Job 10 was completed in May. Jobs 11 and 13 were completed in June. Each job was sold for 25% above its cost in the month following completion.Instructions(a) What is
Shown below are the job cost related accounts for the law firm of Han, Kung, and Ming and their manufacturing-company equivalents:Law Firm Accounts Manufacturing-Company AccountsSupplies ................... Raw MaterialsSalaries and Wages Payable ....... Factory Wages PayableOperating Overhead
Alma Ortiz and Associates, a CPA firm, uses job order costing to capture the costs of its audit jobs. There were no audit jobs in process at the beginning of November. Listed below are data concerning the three audit jobs conducted during November. Overhead costs are applied to jobs on the basis
Irma’s Interiors uses a job order costing system to collect the costs of its interior decorating business. Each client’s consultation is treated as a separate job. Overhead is applied to each job based on the number of decorator hours incurred. Listed below are data for the current
Bynum Manufacturing uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2012, Job No. 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $20,000, direct labor $12,000, and
Skop Inc. is a construction company specializing in custom patios. The patios are constructed of concrete, brick, fiberglass, and lumber, depending upon customer preference. On June 1, 2012, the general ledger for Skop Inc. contains the following data.Raw Materials Inventory $4,200
Saeed Manufacturing uses a job order cost system and applies overhead to production on the basis of direct labor hours. On January 1, 2012, Job No. 25 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $10,000; direct labor $6,000; and
Nami Yee is a contractor specializing in custom-built jacuzzis. On May 1, 2012, her ledger contains the following data.Raw Materials Inventory ..... $30,000Work in Process Inventory ... 12,200Manufacturing Overhead ... 2,500 (dr.)The Manufacturing Overhead account has debit totals of $12,500 and
Waterways has two major public-park projects to provide with comprehensive irrigation in one of its service locations this month. Job J57 and Job K52 involve 15 acres of landscaped terrain which will require special-order sprinkler heads to meet the specifications of the project. This problem asks
Burgio Parts Company uses a job order cost system. For a number of months, there has been an ongoing rift between the sales department and the production department concerning a special-order product, TC-1. TC-1 is a seasonal product that is manufactured in batches of 1,000 units. TC-1 is sold at
TKE Catering provides catering services to many different corporate clients. Although TKE bids most jobs, some jobs, particularly new ones, are negotiated on a “cost-plus” basis. Cost-plus means that the buyer is willing to pay the actual cost plus a return (profit) on these costs to TKE.Anna
Contrast the primary focus of job order cost accounting and of process cost accounting
At Dos Company, overhead is assigned to production departments at the rate of $5 per machine hour. In July, machine hours were 3,000 in the Machining Department and 2,400 in the Assembly Department. Prepare the entry to assign overhead to production.
Mary Watters is uncertain about the steps used to prepare a production cost report. State the procedures that are required in the sequence in which they are performed.
Mitch Chorro is confused about computing physical units. Explain to Mitch how physical units to be accounted for and physical units accounted for are determined.
Gratle Co. had zero units of beginning work in process. During the period, 12,000 units were completed, and there were 800 units of ending work in process one-fifth complete as to conversion cost and 100% complete as to materials cost. What were the equivalent units of production for (a) Materials
Mays Co. started 3,000 units during the period. Its beginning inventory is 500 units one-fourth complete as to conversion costs and 100% complete as to materials cost. Its ending inventory is 200 units one-fifth complete as to conversion cost and 100% complete as to materials costs. How many units
Kira Company transfers out 14,000 units and has 2,000 units of ending work in process that are 25% complete. Materials are entered at the beginning of the process and there is no beginning work in process. Assuming unit materials costs of $3 and unit conversion costs of $6, what are the costs to be
(a) Adam Vadim believes the production cost report is an external report for stockholders. Is Adam correct? Explain.(b) Identify the sections in a production cost report.
At Stan Company, there are 800 units of ending work in process that are 100% complete as to materials and 40% complete as to conversion costs. If the unit cost of materials is $4 and the costs assigned to the 800 units is $6,000, what is the per-unit conversion cost?
Chopra Co. identifies the following activities that pertain to manufacturing overhead: Materials Handling, Machine Setups, Factory Machine Maintenance, Factory Supervision, and Quality Control. For each activity, identify an appropriate cost driver.
Mendez Manufacturing purchases $45,000 of raw materials on account, and it incurs $50,000 of factory labor costs. Journalize the two transactions on March 31 assuming the labor costs are not paid until April.
Data for Mendez Manufacturing are given in BE21-1. Supporting records show that (a) The Assembly Department used $24,000 of raw materials and $30,000 of the factory labor, and (b) The Finishing Department used the remainder. Journalize the assignment of the costs to the processing departments on
Factory labor data for Mendez Manufacturing are given in BE21-2. Manufacturing overhead is assigned to departments on the basis of 200% of labor costs. Journalize the assignment of overhead to the Assembly and Finishing Departments.
Sawyer Manufacturing Company has the following production data for selected months. Compute the physical units for eachmonth.
In Boca Company, total material costs are $32,000, and total conversion costs are $54,000. Equivalent units of production are materials 10,000 and conversion costs 12,000. Compute the unit costs for materials, conversion costs, and total manufacturing costs.
Prya Company has the following production data for April: units transferred out 40,000, and ending work in process 5,000 units that are 100% complete for materials and 40% complete for conversion costs. If unit materials cost is $4 and unit conversion cost is $9, determine the costs to be assigned
Data for Huang Company are given in BE21-8. Production records indicate that 18,000 units were transferred out, and 2,000 units in ending work in process were 50% complete as to conversion cost and 100% complete as to materials. Prepare a cost reconciliation schedule
Sam Snead has formulated the following list of statements about contemporary developments in managerial accounting. 1. Just-in-time processing results in a push approach; that is, raw materials are pushed through each process.2. A primary objective of just-in-time processing is to eliminate all
Meyers Company identifies three activities in its manufacturing process: machine setups, machining, and inspections. Estimated annual overhead cost for each activity is $120,000, $300,000, and $70,000, respectively. The cost driver for each activity and the expected annual usage are: number of
Greg Reid has prepared the following list of statements about process cost accounting.1. Process cost systems are used to apply costs to similar products that are mass-produced in a continuous fashion.2. A process cost system is used when each finished unit is indistinguishable from another.3.
Lamas Company manufactures pizza sauce through two production departments: Cooking and Canning. In each process, materials and conversion costs are incurred evenly throughout the process. For the month of April, the work in process accounts show the following debits. InstructionsJournalize the
The ledger of Penland Company has the following work in process account. Production records show that there were 400 units in the beginning inventory, 30% complete, 1,100 units started, and 1,200 units transferred out. The beginning work in process had materials cost of $2,040 and conversion costs
Kirk Manufacturing Company has two production departments: Cutting and Assembly. July 1 inventories are Raw Materials $4,200, Work in Process—Cutting $2,900, Work in Process—Assembly $10,600, and Finished Goods $31,000. During July, the following transactions occurred.1. Purchased $62,500 of

Showing 2500 - 2600 of 58739

First
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
Last

Step by Step Answers

Services

Sitemap
Fun
Definitions
Become Tutor
Used Textbooks
Study Help Categories
Recent Questions
Expert Questions
Campus Wear
Sell Your Books

Company Info

Security
Copyrights
Privacy Policy
Terms & Conditions
SolutionInn Fee
Scholarship
Online Quiz
Give Feedback, Get Rewards

Get In Touch

About Us
Contact Us
Career
Jobs
FAQ
Student Discount
Campus Ambassador

Secure Payment

Download Our App

© 2026 SolutionInn. All Rights Reserved