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
S
Books
FREE
Study Help
Expert Questions
Accounting
General Management
Mathematics
Finance
Organizational Behaviour
Law
Physics
Operating System
Management Leadership
Sociology
Programming
Marketing
Database
Computer Network
Economics
Textbooks Solutions
Accounting
Managerial Accounting
Management Leadership
Cost Accounting
Statistics
Business Law
Corporate Finance
Finance
Economics
Auditing
Tutors
Online Tutors
Find a Tutor
Hire a Tutor
Become a Tutor
AI Tutor
AI Study Planner
NEW
Sell Books
Search
Search
Sign In
Register
study help
business
managerial accounting
Fundamental Managerial Accounting Concepts 6th Edition Edmonds, Tsay, olds - Solutions
Jenson Department Store is divided into three major departments: Men’s Clothing, Women’s Clothing, and Home Furnishings. Each of these three departments is supervised by a manager who reports to the general manager. The departments are subdivided into different sections managed by floor
Organization chart and controllable costs Kenta Company has employees with the following job titles. President of the company Vice president of marketing Product manager Controller Vice president of manufacturing Treasurer Regional sales manager Personnel
Ladmilla Company has provided the following 2011 data.Requireda. Prepare in good form a budgeted and actual income statement for internal use. Separate operating income from net income in the statements.b. Calculate variances and identify them as favorable (F) or unfavorable (U).
Evaluating a cost center including flexible budgeting concepts Smiley Medical Equipment Company makes a blood pressure measuring kit. Elbert Jackson is the production manager. The production department's static budget and actual results for 2012 follow.Requireda. Convert the static
Evaluating a profit center Virginia Elliott, the president of Lovely Toys Corporation, is trying to determine this year’s pay raises for the store managers. Lovely Toys has seven stores in the southwestern United States. Corporate headquarters purchases all toys from different manufacturers
An investment center of Aguilar Corporation shows an operating income of $7,500 on total operating assets of $60,000. RequiredCompute the return on investment.
Return on investment Mitchell Company calculated its return on investment as 13 percent. Sales are now $270,000, and the amount of total operating assets is $450,000.Requireda. If expenses are reduced by $27,000 and sales remain unchanged, what return on investment will result?b. If both sales and
Schiavo Corporation has a desired rate of return of 8 percent. Frank Rodomil is in charge of one of Schiavo’s three investment centers. His center controlled operating assets of $2,500,000 that were used to earn $260,000 of operating income. RequiredCompute Mr. Rodomil’s residual income.
Claire Cough Drops operates two divisions. The following information pertains to each division for 2010.Requireda. Compute each division's residual income.b. Which division increased the company's profitability more?
Return on investment and residual incomeRequiredSupply the missing information in the following table for Ren Company.
Comparing return on investment with residual income The Wade Division of Geisler Corporation has a current ROI of 20 percent. The company target ROI is 15 percent. The Wade Division has an opportunity to invest $5,000,000 at 18 per cent but is reluctant to do so because its ROI will fall to 19.2
McMillan Home Maintenance Company (MHMC) earned operating income of $7,200,000 on operating assets of $60,000,000 during 2011. The Tree Cutting Division earned $1,215,000 on operating assets of $6,750,000. MHMC has offered the Tree Cutting Division $2,050,000 of additional operating assets. The
Larkey Company has two divisions, A and B. Division A manufactures 6,000 units of product per month. The cost per unit is calculated as follows.Division B uses the product created by Division A. No outside market for Division A 's product exists. The fixed costs incurred by Division A are allocated
The Sentry Parts Division of Camden Company plans to set up a facility with the capacity to make 10,000 units annually of an electronic computer part. The avoidable cost of making the part is as follows.Requireda. Assume that Camden's Norwood Division is currently purchasing 6,000 of the electronic
Wayne Portera is the manager of the production department of Sun Corporation. Sun incurred the following costs during 2011.RequiredPrepare a list of expenditures that Mr. Portera controls.
Controllability, responsibility, and balanced scorecard Ashley Peek manages the production division of Myrex Corporation. Ms. Peek's responsibility report for the month of August follows.The budget had called for 4,600 pounds of raw materials at $5 per pound, and 4,600 pounds were used during
Performance reports and evaluation Vance Corporation has four divisions: the assembly division, the processing division, the machining division, and the packing division. All four divisions are under the control of the vice president of manufacturing. Each division has a manager and several
Different types of responsibility centers Liberty National Bank is a large municipal bank with several branch offices. The bank’s computer department handles all data processing for bank operations. In addition, the bank sells the computer department’s expertise in systems development and
Comparing return on investment and residual income Wells Corporation operates three investment centers. The following financial statements apply to the investment center named Huber Division.Requireda. Which should be used to determine the rate of return (ROI) for the Huber investment center,
Soto Corporation’s balance sheet indicates that the company has $300,000 invested in operating assets. During 2011, Soto earned operating income of $45,000 on $600,000 of sales.Requireda. Compute Soto’s profit margin for 2011.b. Compute Soto’s turnover for 2011.c. Compute Soto’s return on
Allenby Company has operating assets of $20,000,000. The company’s operating income for the most recent accounting period was $2,640,000. The Fisher Division of Allenby controls $7,500,000 of the company’s assets and earned $1,170,000 of its operating income. Allenby’s desired ROI is 10
Return on investment and residual income Windom Technologies, Inc. (WTI), has three divisions. WTI has a desired rate of return of 13 percent. The operating assets and income for each division are as follows:WTI headquarters has $125,000 of additional cash to invest in one of its divisions. The
Landry Radio Corporation is a subsidiary of Kandell Companies. Landry makes car radios that it sells to retail outlets. It purchases speakers for the radios from outside suppliers for $28 each. Recently, Kandell acquired the Viola Speaker Corporation, which makes car radio speakers that it sells to
Yesterday, Fowler Corporation’s board of directors appointed Suzey Cooper as the new president and chief executive officer. This morning, Ms. Cooper presented to the board a list of her management team members. The vice presidents are Joseph Cranston, regional operations; Daniel Invanisevic,
Fowler Corporation divides its operations into three regions: American, European, and Asian. The following items appear in the company’s responsibility report. European director’s salary Revenues of the French branch Office expenses of the Japanese branch Corporation president’s salary Asian
Daniel Invanisevic, Corporation vice president of research and development, has overall responsibility for employees with the following positions:Directors of the Houston, Seattle, and Charlotte laboratoriesSenior researchers reporting to laboratory directorsA personnel manager in each laboratoryAn
McGee Company has provided the following data for 2011:Requireda. Prepare in good form a budgeted and actual income statement for internal use. Separate operating income from net income in the statements.b. Calculate variances and identify them as favorable (F) or unfavorable (U).
Evaluating a cost center (including flexible budgeting concepts) Doug Oliver, president of Oliver Door Products Company, is evaluating the performance of Gregory Wilson, the plant manager, for the last fiscal year. Mr. Oliver is concerned that production costs exceeded budget by nearly $35,000. He
Chris Gomez, president of Medina Travel Company, a travel agency, is seeking a method of evaluating her seven branches. Each branch vice president is authorized to hire employees and devise competitive strategies for the branch territory. Ms. Gomez wonders which of the following three different
A Layfield Corporation investment center shows an operating income of $78,000 and an investment in operating assets of $890,000. RequiredCompute the return on investment.
With annual sales of $4,800,000 and operating assets of $3,200,000, Nolan Company achieved a 10 percent ROI.Requireda. If Nolan reduces expenses by $80,000 and sales remain unchanged, what ROI will result?b. If Nolan cannot change either sales or expenses, what change in the investment base is
Mustafa Corporation’s desired rate of return is 12 percent. Leeds Division, one of Mustafa’s five investment centers, earned an operating income of $4,000,000 last year. The division controlled $25,000,000 of operational assets. RequiredCompute Leeds Division’s residual income.
Earl Oil Change operates two divisions. The following pertains to each division for 2011:Requireda. Compute each division's residual income.b. Which division increased the company's profitability more?
Supply missing information regarding return on investment and residual incomeRequiredSupply the missing information in the following table for Hansen Company.
Contrasting return on investment with residual income The Birmingham Division of Alabama Garage Doors, Inc., is currently achieving a 12 percent ROI. The company’s target ROI is 8 percent. The division has an opportunity to invest in operating assets an additional $900,000 at 10 percent but is
Return on investment and residual income Hammod Insurance Company (HIC) earned operating income of $30,000,000 on operating assets of $240,000,000 during 2011. The Automobile Insurance Division earned $6,000,000 on operating assets of $40,000,000. HIC has offered the Automobile Division $3,625,000
Oscroft Company makes household water filtration equipment. The Aquafresh Division manufactures filters. The Sweet Water Division then uses the filters as a component of the final product Oscroft sells to consumers. The Aquafresh Division has the capacity to produce 8,000 filters per month at the
Transfer pricing and fixed cost per unit The Graca Division of Pryor Company currently produces electric fans that desktop computer manufacturers use as cooling components. The Hackney Division, which makes notebook computers, has asked the Graca Division to design and supply 20,000 fans per year
At a professional conference just a few days ago, Victor Norman, the president of Alexander Corporation, learned how the concept of controllability relates to performance evaluation. In preparing to put this new knowledge into practice, he reviewed the financial data of the company's sales
Controllability, responsibility, and balanced scorecard Dean Ortiz, president of Springfield Corporation, evaluated the performance report of the company's production department. Mr. Ortiz was confused by some arguments presented by Angela Sloan, the production manager. Some relevant data
Performance reports and evaluation The mortgage division of Thorn Financial Services, Inc., is managed by a vice president who supervises three regional operations. Each regional operation has a general manager and several branches directed by branch managers. The Bronson region has two branches,
Kaito Industries, Inc., has five different divisions; each is responsible for producing and marketing a particular product line. The electronics division makes cellular telephones, pagers, and modems. The division also buys and sells other electronic products made by outside companies. Each
Comparing return on investment and residual income Zimmerman Corporation operates three investment centers. The following financial statements apply to the investment center named Meier Division.Requireda. Should operating income or net income be used to determine the rate of return (ROI) for the
Clifton Corporation’s balance sheet indicates that the company has $100,000 invested in operating assets. During 2011, Clifton earned $16,000 of operating income on $320,000 of sales.Requireda. Compute Clifton’s operating profit margin for 2011.b. Compute Clifton’s turnover for 2011.c.
Return on investment and residual income Emery Company has operating assets of $3,600,000. The company’s operating income for the most recent accounting period was $407,000. The Lindburg Division of Emery controls $1,200,000 of the company’s assets and earned $175,000 of its operating income.
Return on investment and residual income Otway Trading Company (OTC) has three divisions. OTC has a desired rate of return of 14%. The operating assets and income for each division are as follows:OTC headquarters has $30,000 of additional cash to invest in one of its divisions. The division
Laya Electronics Corporation makes a modem that it sells to retail stores for $75 each. The variable cost to produce a modem is $35 each; the total fixed cost is $5,000,000. Laya is operating at 80 percent of capacity and is producing 200,000 modems annually. Laya’s parent company, Ocean
The following excerpt is from Coca-Cola Company's 2008 annual report filed with the SEC. Management evaluates the performance of our operating segments separately to individually monitor the different factors affecting financial performance. Our Company manages income taxes and financial costs,
Bellco, a division of Becker International Corporation, is operated under the direction of Antoin Sedatt. Bellco is an independent investment center with approximately $72,000,000 of assets that generate approximately $8,640,000 in annual net income. Becker International has additional investment
Obtain Berkshire Hathaway’s (Berkshire) Form 10-K for the year ended December 31, 2008, and complete the requirements below. To obtain the Form 10-K you can use either the EDGAR system following the instructions in Appendix A, or it can be found under on the company’s corporate website
Green Lawn Mower, Inc., recently acquired Hallit Engines, a small engine manufacturing company. Green’s president believes in decentralization and intends to permit Hallit to continue to operate as an independent entity. However, she has instructed the manager of Green’s lawn mower assembly
The October 5, 1998, issue of BusinessWeek includes the article “Who Can You Trust?” authored by Sarah Bartlett. Among other dubious accounting practices, the article describes a trick known as the “big bath,” which occurs when a company makes huge unwarranted asset write-offs that
Waldon Corporation's balance sheet shows that the company has $600,000 invested in operating assets. During 2010, Waldon earned $120,000 on $960,000 of sales. The company's desired return on investment (ROI) is 12 percent.Requireda. Construct a spreadsheet to calculate ROI and residual income
The Pillar Manufacturing Company has three identified levels of authority and responsibility. The organization chart as of December 31, 2011, appears as follows:Pertinent expenses for Level 3 follow:Pertinent expenses for Level 2 follow:Pertinent expenses for Level 1 follow:Requireda. Construct a
Assume Magnificent Modems (MM) is a division of Gilmore Business Products (GBP). GBP uses ROI as the primary measure of managerial performance. GBP has a desired return on investment (ROI) of 3 percent. The company has $100,000 of investment funds to be assigned to its divisions. The president of
What is the difference between direct and indirect raw materials costs?
Direct raw materials were purchased on account, and the costs were subsequently transferred to Work in Process Inventory. How would the transfer affect assets, liabilities, equity, and cash flows? What is the effect on the income statement? Would your answers change if the materials had originally
How do manufacturing costs flow through inventory accounts?
Goods that cost $2,000 to make were sold for $3,000 on account. How does their sale affect assets, liabilities, and equity? What is the effect on the income statement?
At the end of the accounting period, an adjusting entry is made for the accrued wages of production workers. How would this entry affect assets, liabilities, and equity? What is the effect on the income statement?
X Company recorded the payment for utilities used by the manufacturing facility by crediting Cash and debiting Manufacturing Overhead. Why was the debit made to Manufacturing Overhead instead of Work in Process Inventory?
Why is the salary of a production worker capitalized while the salary of a marketing manager expensed?
Al Carmon says that his company has a difficult time establishing a predetermined overhead rate because the number of units of product produced during a period is difficult to measure. What are two measures of production other than the number of units of product that Mr. Carmon could use to
What do the terms overapplied overhead and underapplied overhead mean?
What are product costs and selling, general, and administrative costs? Give examples of product costs and of selling, general, and administrative costs.
How does the entry to close an insignificant amount of overapplied overhead to the Cost of Goods Sold account affect net income?
Why are actual overhead costs not used in determining periodic product cost?
Because of seasonal fluctuations, Buresch Corporation has a problem determining the unit cost of its products. For example, high heating costs during the winter months cause the cost per unit to be higher than the per-unit cost in the summer months even when the same number of units of product is
What is the purpose of the Manufacturing Overhead account?
For what purpose is the schedule of cost of goods manufactured and sold prepared? Do all companies use the statement?
How does the variable costing approach differ from the absorption costing approach? Explain the different income statement formats used with each approach.
How is profitability affected by increases in productivity under the variable and absorption costing approaches?
Under what circumstance is a variable costing statement format used? What potential problem could it eliminate?
Product cost flow and financial statements Joiner Manufacturing Company was started on January 1, 2011. The company was affected by the following events during its first year of operation.1. Acquired $1,600 cash from the issue of common stock.2. Paid $500 cash for direct raw materials.3.
Recording events in T-accounts and preparing financial statements Pruitt Manufacturing Company was started on January 1, 2011, when it acquired $2,000 cash from the issue of common stock. During the first year of operation, $800 of direct raw materials was purchased with cash, and $600 of the
Effect of accounting events on financial statementsRequiredUse a horizontal statements model to indicate how each of the following independent accounting events affects the elements of the balance sheet and the income statement. Indicate whether the event increases (I), decreases (D), or does not
Preparing financial statements Cooper Corporation began fiscal year 2011 with the following balances in its inventory accounts.During the accounting period, Cooper purchased $240,000 of raw materials and issued $248,000 of materials to the production department. Direct labor costs for the period
Missing information in a schedule of cost of goods manufacturedRequiredSupply the missing information on the following schedule of cost of goods manufactured.
Cost of goods manufactured and sold The following information pertains to Pandey Manufacturing Company for March 2012. Assume actual overhead equaled applied overhead.Requireda. Prepare a schedule of cost of goods manufactured and sold.b. Calculate the amount of gross margin on the income statement.
Calculating applied overhead Avery, Inc., estimates manufacturing overhead costs for the 2012 accounting period as follows.The company uses a predetermined overhead rate based on machine hours. Estimated hours for labor in 2012 were 200,000 and for machines were 125,000. Requireda. Calculate the
Lindburg Company estimates that its overhead costs for 2011 will be $270,000 and output in units of product will be 300,000 units.Requireda. Calculate Lindburg’s predetermined overhead rate based on expected production.b. If 24,000 units of product were made in March 2011, how much overhead cost
Kent Company and Trent Company both apply overhead to the Work in Process Inventory account using direct labor hours. The following information is available for both companies for the year.Requireda. Compute the predetermined overhead rate for each company.b. Using T-accounts, record the entry to
Belmont Company and Delmont Company assign manufacturing overhead to Work in Process Inventory using direct labor cost. The following information is available for the companies for the year:Requireda. Compute the predetermined overhead rate for each company.b. Determine the amount of overhead cost
Recording manufacturing overhead costs in T-accounts Gill Corporation manufactures model airplanes. The company purchased for $170,000 automated production equipment that can make the model parts. The equipment has a $10,000 salvage value and a 10-year useful life.Requireda. Assuming that the
Kline Manufacturing recorded the following amounts in its inventory accounts in 2011.RequiredDetermine the dollar amounts for (a), (b), (c), (d), and (e). Assume that underapplied and overapplied overhead is closed to Cost of Goods Sold.
Variable costing versus absorption costing Lange Company incurred manufacturing overhead cost for the year as follows.The company produced 1,500 units and sold 1,000 of them at $180 per unit. Assume that the production manager is paid a 2 percent bonus based on the company's net income.Requireda.
Wagner Manufacturing estimated its product costs and volume of production for 2012 by quarter as follows.Wagner Company sells a souvenir item at various resorts across the country. Its management uses the product's estimated quarterly cost to determine the selling price of its product. The company
Manufacturing cost flow across three accounting cycles The following accounting events affected Massey Manufacturing Company during its first three years of operation. Assume that all transactions are cash transactions.Transactions for 20101. Started manufacturing company by issuing common stock
Manufacturing cost flow for monthly and annual accounting periods Dorothy Huddle started Huddle Manufacturing Company to make a universal television remote control device that she had invented. The company’s labor force consisted of part-time employees. The following accounting events affected
Manufacturing cost flow for one-year period Fulton Manufacturing started 2011 with the following account balances.Transactions during 20101. Purchased $2,880 of raw materials with cash.2. Transferred $3,750 of raw materials to the production department.3. Incurred and paid cash for 180 hours of
Manufacturing cost for one accounting cycle The following trial balance was taken from the records of Wheaton Manufacturing Company at the beginning of 2012.Transactions for the Accounting Period1. Wheaton purchased $5,700 of direct raw materials and $300 of indirect raw materials on account. The
Manufacturing cost flow for multiple accounting cycles The following events apply to Caldwell Manufacturing Company. Assume that all transactions are cash transactions unless otherwise indicated.Transactions for the 2010 Accounting Period1. The company was started on January 1, 2010, when it
Comprehensive review problem During their senior year at Quentin College, two business students, Josh Tanner and Christy Chase, began a part-time business making personal computers. They bought the various components from a local supplier and assembled the machines in the basement of a friend's
Ellis Manufacturing Company makes a product that sells for $74 per unit. Manufacturing costs for the product amount to $26 per unit variable, and $80,000 fixed. During the current accounting period, Ellis made 4,000 units of the product and sold 3,500 units. Selling and administrative expenses were
Stowe Glass Company makes stained glass lamps. Each lamp that it sells for $315 per lamp requires $18 of direct materials and $72 of direct labor. Fixed overhead costs are expected to be $202,500 per year. Stowe Glass expects to sell 1,000 lamps during the coming year. Selling and
Absorption and variable costing Thornell Manufacturing pays its production managers a bonus based on the company's profitability. During the two most recent years, the company maintained the same cost structure to manufacture its products.(Assume that selling & administrative expenses are
Product cost flow and financial statements Murray Manufacturing began business on January 1, 2012. The following events pertain to its first year of operation.1. Acquired $3,000 cash by issuing common stock.2. Paid $600 cash for direct raw materials.3. Transferred $500 of direct raw materials to
Recording events in T-accounts and preparing financial statements Hinnop Manufacturing Company was started on January 1, 2012, when it acquired $1,500 cash by issuing common stock. During its first year of operation, it purchased $480 of direct raw materials with cash and used $360 of the
Effect of accounting events on financial statementsRequiredUse a horizontal statements model to show how each of the following independent accounting events affects the elements of the balance sheet and the income statement. Indicate whether the event increases (I), decreases (D), or does not
Morris Manufacturing Company started 2011 with the following balances in its inventory accounts: Raw Materials, $2,800; Work in Process, $2,800; Finished Goods, $3,300. During 2011 Morris purchased $17,000 of raw materials and issued $16,500 of materials to the production department. It incurred
Showing 3800 - 3900
of 58739
First
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
Last
Step by Step Answers