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

Cost Management Accounting And Control 6th Edition Don R. Hansen, Maryanne M. Mowen, Liming Guan - Solutions

Why is actual costing rarely used for product costing?
Explain the differences between job-order costing and process costing.
What are some differences between a manual job-order costing system and an automated job-order costing system?
Explain why multiple overhead rates are often preferred to a plantwide overhead rate.
Explain the role of activity drivers in assigning costs to products.
Define the following terms: expected actual activity, normal activity, practical activity, and theoretical activity.
Why would some prefer to use normal activity rather than expected actual activity to compute a predetermined overhead rate?
When computing a predetermined overhead rate, why are units of output not commonly used as a measure of production?
Wilson Company has a predetermined overhead rate of $5 per direct labor hour. The job-order cost sheet for Job 145 shows 1,000 direct labor hours costing $10,000 and materials requisitions totaling $7,500. Job 145 had 500 units completed and transferred to finished goods inventory. What is the cost
Why are the accounting requirements for job-order costing more demanding than those for process costing?
Explain the difference between normal cost of goods sold and adjusted cost of goods sold.
Amber Company produces custom framing. For one job, the trainee assigned to cut the mat entered the mat dimensions incorrectly into the computer. The mat was unusable and had to be discarded; another mat was cut to the correct dimensions. How is the cost of the spoiled mat handled?
Amber Company produces custom framing. For one job, the dimensions of the picture were such that the computer-controlled, mat-cutting device could not be used. Amber warned the customer that this was a particularly difficult job, and her normal price would be increased to reflect its difficulty.
Jeff Boyer, of Rainking Company, designs and installs custom lawn and garden irrigation systems for homes and businesses throughout the state. Each job is different, requiring different materials and labor for installing the systems. Rainking estimated the following for the year:Number of
Jeff Boyer, owner of Rainking of Exercise 5-1, noticed that the watering systems for many houses in a local subdivision had the same layout and required virtually identical amounts of prime cost. Jeff met with the subdivision builders and offered to install a basic watering system in each house.
Marcus Lindsey has just started a new business—building and installing custom garage organization systems. Marcus builds the cabinets and work benches in his workshop and then installs them in clients’ garages. Marcus figures his overhead for the coming year will be $9,000. Since his business
Refer to Exercise 5-3.Required:1. What source documents will Marcus need to account for costs in his new business?2. Suppose Marcus’s business grows, and he expands his workshop and hires three additional carpenters to help him. What source documents will he need now?
During October, Johnson Company worked on three jobs. Data relating to these three jobs follow:Overhead is assigned on the basis of direct labor hours at a rate of $7 per direct labor hour. During October, Jobs 42 and 43 were completed and transferred to finished goods inventory. Job 43 was sold by
On August 1, Cimino Company had the following balances in its inventory accounts:Materials Inventory ......... $16,350Work-in-Process Inventory ...... 21,232Finished Goods Inventory ....... 15,200Work-in-process inventory is made up of three jobs with the following costs:During August, Cimino
Refer to Exercise 5-6.Required:1. Prepare journal entries for the August transactions.2. Calculate the ending balances of each of the inventory accounts as of August 31.
On June 1, Landsman Company€™s work-in-process inventory consisted of three jobs with the following costs:During June, four more jobs were started. Information about costs added to the seven jobs during June is as follows:Before the end of June, Jobs 80, 82, 83, and 85 were completed. On
Refer to Exercise 5-8. Landsman’s marketing and administrative expense for June was $2,400.Required:Prepare an income statement for Landsman Company for June.
Wright, Inc., manufactures brown paper grocery bags. During the month of November, the following occurred:a. Purchased materials on account for $23,175.b. Requisitioned materials totaling $19,000 for use in production.c. Incurred direct labor payroll for the month of $17,850, with an average wage
During February, Vargas Company worked on three jobs. Data relating to these three jobs follow:Overhead is assigned on the basis of direct labor hours at a rate of $5.30 per direct labor hour. During February, Jobs 83 and 84 were completed and transferred to finished goods inventory. Job 84 was
Mazlow Company uses an ABC system to apply overhead. There are three activity rates:Purchasing ...... $30 per purchase orderMachining ...... $5 per machine hourOther overhead .... 60% of direct labor costDuring August, Mazlow worked on three jobs. Data relating to these jobs follow:During August,
Bienstar Company uses job-order costing. During March, the following data were reported:a. Purchased materials on account: direct materials, $82,000; indirect materials, $10,500.b. Issued materials: direct materials, $72,500; indirect materials, $7,000.c. Incurred labor cost: direct labor, $52,000;
Menotti Company is a job-order costing firm that uses activity-based costing to apply overhead to jobs. Menotti identified three overhead activities and related drivers. Budgeted information for the year is as follows:Menotti worked on five jobs in July. Data are as follows:By July 31, Jobs 50 and
During September, the following transactions were completed and reported by Golder Products, Inc.:a. Purchased materials on account for $50,100.b. Issued materials to production to fill job-order requisitions: direct materials, $30,000; indirect materials, $15,000.c. Accumulated payroll for the
Smedley Company manufactures specialty tools to customer order. Budgeted overhead for the coming year is as follows:Purchasing ...... $30,000Setups .......... 35,000Engineering ....... 15,000Other ........ 10,000Previously, Lisa Benetton, Smedley Company€™s controller, had applied
Anselmo’s Kwik Print provides a variety of photocopying and printing services. On June 5, Anselmo invested in some computer-aided photography equipment that enables customers to reproduce a picture or illustration, input it digitally into the computer, enter text into the computer, and then print
Emily Honig, marketing manager for Romer Company, was puzzled by the outcome of two recent bids. The company€™s policy was to bid 150 percent of the full manufacturing cost. One job (labeled Job 97-28) had been turned down by a prospective customer, who had indicated that the proposed
Byers Company is a specialty print shop. Usually, printing jobs are priced at standard cost plus 50 percent. Job 95-301 involved printing 500 wedding invitations with the following standard costs:Direct materials ..... $200Direct labor ...... 20Overhead ......... 30Total
Nevin’s Sporting Goods Store sells a variety of sporting goods and clothing. In a back room, Nevin’s has set up heat-transfer equipment to personalize T-shirts for Little League teams. Typically, each team has the name of the individual player put on the back of the T-shirt. Last week, Taffy
Miller Construction, Inc., is a privately held, family-founded corporation that builds single- and multiple-unit housing. Most projects Miller Construction undertakes involve the construction of multiple units. Miller Construction has adopted a job-order costing system for determining the cost of
Dr. Sherry Bird is employed by Dental Associates. Dental Associates recently installed a computerized job-order costing system to help monitor the cost of its services. Each patient is treated as a job and assigned a job number when he or she checks in with the receptionist. The
What is decentralization? Discuss the differences between centralized and decentralized decision making.
Explain how access to local information can improve decision making.
What are two disadvantages of ROI? Explain how each can lead to decreased profitability.
What is residual income? Explain how residual income overcomes one of ROI’s disadvantages.
What is EVA? How does it differ from ROI and residual income?
What is a stock option? How can it encourage goal congruence?
What is a transfer price? Discuss in detail.
What is the transfer pricing problem?
If the minimum transfer price of the selling division is less than the maximum transfer price of the buying division, the intermediate product should be transferred internally. Do you agree or disagree? Why?
If an outside, perfectly competitive market exists for the intermediate product, what should the transfer price be? Why?
Identify three cost-based transfer prices. What are the disadvantages of cost-based transfer prices? When might it be appropriate to use cost-based transfer prices?
What is the purpose of Internal Revenue Code Section 482? What four methods of transfer pricing are acceptable under this section?
Deercreek Corporation presented two years of data for its Sporting Goods Division and its Camping Division.Required:1. Compute the ROI and the margin and turnover ratios for each year for the Sporting Goods Division.2. Compute the ROI and the margin and turnover ratios for each year for the Camping
Refer to Exercise 10-1 for data. At the end of Year 2, the manager of the Camping Division is concerned about the division€™s performance. As a result, he is considering the opportunity to invest in two independent projects. The first is called the €œEverTent€; it is
Refer to the data given in Exercise 10-2.Required:1. Compute the residual income for each of the opportunities.2. Compute the divisional residual income for each of the following four alternatives:a. The Ever-Tent is added.b. The KiddieKamp is added.c. Both investments are added.d. Neither
Brewster Company manufactures elderberry wine. Last year, Brewster earned operating income of $210,000 after income taxes. Capital employed equaled $2 million. Brewster is 50 percent equity and 50 percent 10-year bonds paying 6 percent interest. Brewster’s marginal tax rate is 35 percent. The
Whirlmore, Inc., manufactures and sells washers and dryers through three divisions: Home-Supreme, Apartment, and International. Each division is evaluated as a profit center. Data for each division for last year are as follows (numbers in thousands).The income tax rate for Whirlmore is 30 percent.
VSOP, Inc., has a number of divisions that produce liquors, malt beverages, and glassware. The Glassware Division manufactures a variety of bottles that can be sold externally (to soft-drink and juice bottlers) or internally to VSOP’s Malt Beverage Division. Sales and cost data on a case of 24
Auto-Lite Manufacturing, Inc., has a division in the United States that produces a variety of headlamps and interior light packages for automobiles. One type of headlamp for compact cars is transferred to a Manufacturing Division in Italy. The headlamps can be (and are) sold externally in the
Perrex, Inc., has a division in Honduras that makes a powder used to coat wire, and another division in the United States that manufactures wire. The Powder Division incurs manufacturing costs of $0.83 for one pound of powder. The Wire Division currently buys its powder coating from an outside
Zetter, Inc., has a division in Canada that makes paint. Zetter also has a U.S. division, the Retail Division, that operates a chain of home improvement stores. The Retail Division would like to buy the unique, long-lasting paint from the Canadian division, since this type of paint is not currently
A multinational corporation has a number of divisions, two of which are the Pacific Rim Division and the European Division. Data on the two divisions are as follows:Required:1. Compute residual income for each division. By comparing residual income, is it possible to make a useful comparison of
Consider the data for each of the following four independent companies:Required:1. Calculate the missing values in the above table.2. Assume that the cost of capital is 9 percent for each of the four firms. Compute the residual income for each of the fourfirms.
The following selected data pertain to the Silverthorne Division for last year:Sales ............ $1,000,000Variable costs ........ $600,000Traceable fixed costs ..... $100,000Average invested capital ...... $1,500,000Imputed interest rate ...... 15%Required:1. How much is the
Casey Bertholt graduated from State U with a major in accounting five years ago. She obtained a position with a well-known professional services firm upon graduation and has become one of their outstanding performers. In the course of her work, she has developed numerous contacts with business
Truman Industries is a vertically integrated firm with several divisions that operate as decentralized profit centers. Truman€™s Systems Division manufactures scientific instruments and uses the products of two of Truman€™s other divisions. The Board Division manufactures
Raddington Industries produces tool and die machinery for manufacturers. The company expanded vertically in 2009 by acquiring one of its suppliers of alloy steel plates, Reigis Steel Company. To manage the two separate businesses, the operations of Reigis are reported separately as an investment
Macalester, Inc., manufactures heating and air conditioning units in its six divisions. One division, the Components Division, produces electronic components that can be used by the other five. All the components produced by this division can be sold to outside customers; however, from the
Chapin, Inc., owns a number of food service companies. Two divisions are the Coffee Division and the Donut Shop Division. The Coffee Division purchases and roasts coffee beans for sale to supermarkets and specialty shops. The Donut Shop Division operates a chain of donut shops where the donuts are
Owens Company has a decentralized organization with a divisional structure. Two of these divisions are the Appliance Division and the Manufactured Housing Division. Each divisional manager is evaluated on the basis of ROI. The Appliance Division produces a small automatic dishwasher that the
Greg Peterson has recently been appointed vice president of operations for Webster Corporation. Greg has a manufacturing background and previously served as operations manager of Webster’s Tractor Division. The business segments of Webster include the manufacture of heavy equipment, food
Carnover, Inc., manufactures a broad line of industrial and consumer products. One of its plants is located in Madrid, Spain, and another in Singapore. The Madrid plant is operating at 85 percent capacity. Its main product, electric motors, has experienced softness in the market, which has led to
Grate Care Company specializes in producing products for personal grooming. The company operates six divisions, including the Hair Products Division. Each division is treated as an investment center. Managers are evaluated and rewarded on the basis of ROI performance. Only those managers who
What is a process? Provide an example that illustrates the definition.
What journal entry would be made as goods are transferred out from one department to another department? From the final department to the warehouse? Discuss.
What are transferred-in costs?
Can process costing be used for a service organization? Explain. Explain how process costing can be used for JIT manufacturing firms.
Describe the five steps in accounting for the manufacturing activity of a processing department, and indicate how they interrelate.
How are transferred-in costs treated in the calculation of equivalent units?
What is operation costing? When is it used?
Lawson Company has three process departments: dicing, cooking, and canning. At the beginning of the fiscal year (July 1), there were no work-in-process or finished goods inventories. The following data are available for the month of July:*Includes only the direct materials, direct labor, and the
A local barbershop cuts the hair of male customers. The barbers offer no special styling. During the month of February, 1,500 haircuts were given. The cost of haircuts includes the following:Direct labor ..... $10,500Direct materials ..... 1,500Overhead ...... 3,000Total
Iceland Company uses JIT manufacturing. Several manufacturing cells are set up within one of its factories. One of the cells makes space heaters. The cost of production for the month of March is as follows:Cell labor .......... $ 20,000Direct materials ......... 50,000Overhead ...........
Littlejohn, Inc., produces a subassembly used in the production of hydraulic cylinders. The subassemblies are produced in three departments: rod cutting, plate cutting, and welding. Overhead is applied using the following drivers and activity rates:Other data for the plate cutting department are as
Antler Company manufactures glass cleanser. The mixing department, the first process department, mixes the chemicals required for the cleanser. The following data are for 2010:Work in process, January 1, 2010 ........ —Gallons started ................ 150,000Gallons transferred out ............
Marid Company manufactures a product that passes through two processes: fabrication and assembly. The following information was obtained for the fabrication department for August:a. All materials are added at the beginning of the process.b. Beginning work in process had 60,000 units, 30 percent
Manzer Company uses the FIFO method to account for the costs of production. For crushing, the first processing department, the following equivalent units schedule has been prepared for November:The cost per equivalent unit for the period was as follows:Direct materials ..... $3.00Conversion costs
The following data are for four independent process-costing departments. Inputs are added uniformly.Required:Compute the equivalent units of production for each of the preceding departments using the weighted averagemethod.
Using the data from Exercise 6-8, compute the equivalent units of production for each of the four departments using the FIFO method.
Marida Products, Inc., produces plastic cases used for video cameras. The product passes through three departments. For April, the following equivalent units schedule was prepared for the first department:Costs assigned to beginning work in process: direct materials, $30,000; conversion costs,
White Company produces men's shorts and uses the FIFO method to account for its manufacturing costs. The product White makes passes through two processes: cutting and sewing. During May, White's controller prepared the following equivalent units schedule for the cutting department:Costs in
Watson Company has a product that passes through two processes: grinding and polishing. During October, the grinding department transferred 20,000 units to the polishing department. The cost of the units transferred into the second department was $40,000. Direct materials are added uniformly in the
Using the same data found in Exercise 6-12, assume the company uses the FIFO method.Required:Prepare a schedule of equivalent units, and compute the unit cost for the month of October.
Harriman Company has two processing departments: assembly and finishing. A predetermined overhead rate of $10 per direct labor hour is used to assign overhead to production. The company experienced the following operating activity for August:a. Issued materials to assembly, $24,000.b. Incurred
Tasty Bread makes and supplies bread throughout the state of Kansas. Three types of bread are produced: loaves, rolls, and buns. Seven operations describe the production process.a. Mixing: Flour, milk, yeast, salt, butter, and so on, are mixed in a large vat.b. Shaping: A conveyor belt transfers
Ronlon Parts, Inc., manufactures bumpers (plastic or metal, depending on the plant) for automobiles. Each bumper passes through three processes: molding, drilling, and painting. In January, the molding department of the Springfield plant reported the following data:a. In molding, all direct
Refer to the data in Problem 6-16. Assume that the FIFO method is used.Required:1. Prepare a physical flow schedule.2. Calculate equivalent units of production for direct materials and conversion costs.3. Compute unit cost.4. Calculate the cost of goods transferred to drilling at the end of the
Peterson Company produces a product that passes through three processes: fabrication, assembly, and finishing. All manufacturing costs are added uniformly for all processes. The following information was obtained for the assembly department for April 2010:a. Work in process, April 1, had 10,000
Refer to the data in Problem 6-18.Required:Prepare a cost of production report for the assembly department for April using the FIFO method of costing.
Acceptance Credit Corporation is a wholly owned subsidiary of a large manufacturer of computers. Acceptance is in the business of financing computers, software, and other services that the parent corporation sells. Acceptance has two departments that are involved in financing services: the credit
Kremel Company uses a process-costing system. The company manufactures a product that is processed in two departments: molding and assembly. In the molding department, direct materials are added at the beginning of the process; in the assembly department, additional direct materials are added at
Refer to the data in Problem 6-21.Required:Repeat the requirements in Problem 6-21 using the FIFO method.
Healthway uses a process-costing system to compute the unit costs of the minerals that it produces. It has three departments: mixing, tableting, and bottling. In mixing, the ingredients for the minerals are measured, sifted, and blended together. The mix is transferred out in gallon containers. The
Refer to the data in Problem 6-23.Required:Prepare a production report for each department using the FIFO method.
Maxton Company produces two brands of a popular pain medication: regular strength and extra strength. Regular strength is produced in tablet form, and extra strength is produced in capsule form. All direct materials needed for each batch are requisitioned at the start. The work orders for two

Showing 9600 - 9700 of 58739

First
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
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