A manufacturing plant has reached full capacity. The company must build a second planteither small or largeat a nearby location. The demand is likely to be high or low. The probability of low demand...

(One Temporary Difference, Tracked 3 Years, Change in Rates, Income Statement Presentation) Crosley Corp. sold an investment on an installment basis. The total gain of $60,000 was reported for...

(Pension Expense, Journal Entries, Statement Presentation) Henning Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the...

Michael McNamee is the proprietor of a property management company, Apartment Exchange, near the campus of Pensacola State College. The business has cash of $ 8,000 and furniture that cost $ 9,000...

Hank Itzek manufactures and sells homemade wine, and he wants to develop a standard cost per gallon. The following are required for production of a 50-gallon batch. 3,000 ounces of grape concentrate...

On December 31, 2008, Travis Tritt Inc. has a machine with a book value of $940,000. The original cost and related accumulated depreciation at this date are as follows. Machine .......... $1,300,000...

CVP analysis, income taxes Brooke Motors is a small car dealership. On average, it sells a car for $27,000, which it purchases from the manufacturer for $23,000. Each month, Brooke Motors pays...

Below is a series of cost of goods sold sections for companies Alpha, Beta, Chi, and Decca. Instructions Fill in the lettered blanks to complete the cost of goods soldsections. Alpha Beta $150 70...

The Howland Carpet Company has grown rapidly during the past 5 years. Recently, its commercial bank urged the company to consider increasing its permanent financing. Its bank loan under a line of...

1. A product has annual demand of 100,000 units. The plant manager wants production to follow a four-hour cycle. Based on the following data, what setup cost will enable the desired production cycle?...

Zerbel Company, a wholesaler of large, custom-built air conditioning units for commercial buildings, has noticed considerable fluctuation in its shipping expense from month to month, as shown below:...

Posey Ceramics makes ceramic vases for a chain of department stores. The output and cost figures over the past four weeks are shown here. Labor costs $10 an hour, and materials are $4 a pound....

A list of financial statement items for Morales Company includes the following: accounts receivable $14,000; prepaid insurance $2,600; cash $10,400; supplies $3,800; and debt investments (short-term)...

Sala Co. is contemplating the replacement of an old machine with a new one. The following information has been gathered: If the old machine is replaced, it can be sold for $20,000. 1. Which of the...

The records of Alaska Company provide the following information for the year ended December 31. Required 1. Use the retail inventory method to estimate the companys year- end inventory at cost. 2. A...

The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers that it uses in its budgeting and performance reportsthe number of courses and...

Philagem, Inc., ended 2012 with a net profit before taxes of $218,000. The company is subject to a 40% tax rate and must pay $32,000 in preferred stock dividends before distributing any earnings on...

At the end of its third year of operations, the Sandifer Manufacturing Co. had $4,500,000 in revenues; $3,375,000 in cost of goods sold; $450,000 in operating expenses, which included depreciation...

Imagine you are an HR executive at P&G. Given the company's strategic orientation toward purpose and values, what would you do to help align a new performance management system with the strategic...

During the fourth quarter of 2013, there were seven biweekly paydays on Friday (October 4, 18; November 1, 15, 29; December 13, 27) for Clarke's Roofing. Using the forms supplied on pages 4-58 to...

The beginning inventory at RTE Office Supplies and data on purchases and sales for a three-month period are shown in Problem 6-1A. Instructions 1. Record the inventory, purchases, and cost of...

The trial balance columns of the worksheet for Dixon Company at June 30, 2017, are as follows. Other data: 1. A physical count reveals $500 of supplies on hand. 2. $100 of the unearned revenue is...

Pureform. Inc., manufactures a product that passes through two departments. Data for a recent month for the first department follow: The beginning work in process inventory was 80% complete with...

Activity-based costing is the wave of the present and the future. All companies should adopt it? Do you agree? Explain.

A list of 16 issues that led to incorrect formulations in Richard Dulskis jam manufacturing unit is provided below: 1. Incorrect measurement 2. Antiquated scales 3. Lack of clear instructions 4....

McDowell Industries sells on terms of 3/10, net 30. Total sales for the year are $912,500. Forty percent of the customers pay on the 10th day and take discounts; the other 60 percent pay, on average,...

Budgeting; direct material usage, manufacturing cost and gross margin. Xerxes Manufacturing Company manufactures blue rugs, using wool and dye as direct materials. All other materials are indirect....

Shalit Corporations 2008 sales were $12 million. Its 2003 sales were $6 million. a. At what rate have sales been growing? b. Suppose someone made this statement: Sales doubled in 5 years. This...

Ski Boards, Inc., wants to enter the market quickly with a new finish on its ski boards. It has three choices: (a) Refurbish the old equipment at a cost of $800, (b) Make major modifications at the...

Browns, a local bakery, is worried about increased costs particularly energy. Last years records can provide a fairly good estimate of the parameters for this year. Wende Brown, the owner, does not...

Chavez Company most recently reconciled its bank statement and book balances of cash on August 31 and it reported two checks outstanding, No. 5888 for $ 1,028.05 and No. 5893 for $ 494.25. The...

On September 1 of the current year, Joy Tucker established a business to manage rental property. She completed the following transactions during September: A. Opened a business bank account with a...

Capitalization of Interest On December 31, 2009, Hurston Inc. borrowed $3,000,000 at 12% payable annually to finance the construction of a new building. In 2010, the company made the following...

Saddle Inc. issues $300,000, 10-year, 8% bonds at 98. Prepare the journal entry to record the sale of these bonds on March 1, 2014.

Veldre Company provides the following information about its defined benefit pension plan for the year 2012. Service cost $ 90,000 Contribution to the plan .. 105,000 Prior service cost amortization...

Two automatic systems for dispensing maps are being compared by the state highway department. The accompanying breakeven chart of the comparison of these systems (System I vs System II) shows total...

Linz Company sold $250,000 of 9.5 percent, 20-year bonds on April 1, 2014, at 106. The semiannual interest payment dates are March 31 and September 30. The market interest rate is 8.9 percent. The...

Lubricants, Inc., produces a special kind of grease that is widely used by race car drivers. The grease is produced in two processing departments: Refining and Blending. Raw materials are introduced...

Recently, a growing labor shortage has been causing Chinese wages to rise. If this trend continues, what would you expect to see happen to external economy industries currently dominated by China?...

Multiple-choice questions: a. Which of the following accounts would not appear on a conventional balance sheet? 1. Accounts Receivable 2. Accounts Payable 3. Patents 4. Gain from Sale of Land 5....

John and Sally Claussen are contemplating the purchase of a hardware store from John Duggan. The Claussens anticipate that the store will generate cash flows of $70,000 per year for 20 years. At the...

South Carolina Furniture, Inc., produces all types of office furniture. The Executive Secretary is a chair that has been designed using ergonomics to provide comfort during long work hours. The chair...

As part of your systems analysis project to update the automated accounting functions for Xanadu Corporation, a maker of digital cameras, you will interview Leo Blum, the chief accountant. Write four...

The comparative balance sheet of Merrick Equipment Co. for Dec. 31, 2014 and 2013, is: The income statement for the year ended December 31, 2014, is as follows: Additional data obtained from an...

Southwest has mastered the low-price model and has the financial results to prove it. Why dont the other airlines copy Southwests model?

Douglas manufactures four grades of lubricant, W-10, W-20, W-30, and W-40, from a joint process. Additional information follows: Required Assuming that total joint costs of $240,000 were allocated...

What effect does organizational structure and compensation have on ethical behavior among chief executives at ARC? The American Red Cross (ARC) is an independent organization, supported by public...

Kim Yi has prepared the following list of statements about accounts. 1. An account is an accounting record of either a specific asset or a specific liability. 2. An account shows only increases, not...

Alaskan Fisheries, Inc., processes salmon for various distributors. Two departments are involvedCleaning and Packing. Data relating to pounds of salmon processed in the Cleaning Department during...

What are the economies of scale in college class size? As class size increases, what symptoms of diseconomies of scale appear? How are these symptoms related to customer contact?

The stockholders equity accounts of Terrell Corporation on January 1, 2014, were as follows. Preferred Stock (9%, $50 par, cumulative, 10,000 shares authorized) ...$ 400,000 Common Stock ($1 stated...

George Clausen (age 48) is employed by Kline Company and is paid a salary of $42,640. He has just decided to join the company's Simple Retirement Account (IRA form) and has a few questions. Answer...

The comparative balance sheet of Harris Industries Inc. at December 31, 2014 and 2013, is as follows: An examination of the income statement and the accounting records revealed the following...

Okabe Company ended its fiscal year on July 31, 2017. The companys adjusted trial balance as of the end of its fiscal year is shown below. Instructions (a) Prepare the closing entries using page J15....

Arial Company maintains a petty cash fund for small expenditures. The following transactions occurred over a 2-month period. July 1 Established petty cash fund by writing a check on Coulter Bank for...

At December 31, 2013, House Co. reported the following information on its balance sheet. Accounts receivable ............ $960,000 Less: Allowance for doubtful accounts ...... 80,000 During 2014, the...

D'Lite Dry Cleaners is owned and operated by Joel Palk. A building and equipment are currently being rented, pending expansion to new facilities. The actual work of dry cleaning is done by another...

The Janowski Company has three product lines of mugsA, B, and Cwith contribution margin s of $ 5, $ 4, and $ 3, respectively. The president foresees sales of 168,000 units in the coming period,...

The Americo Oil Company is considering making a bid for a shale oil development contract to be awarded by the federal government. The company has decided to bid $112 million. The company estimates...

Kenseth Corp. has the following beginning-of-the-year present values for its projected benefit obligation and market-related values for its pension plan assets. The average remaining service life per...

Cannes Company has the following information available for September 2014. Unit selling price of video game consoles .. $ 400 Unit variable costs ... $ 275 Total fixed costs ...... $52,000 Units sold...

Knowledge of technical issues such as computer technology is a necessary but not sufficient condition to becoming a successful management accountant. Do you agree why?

Fire Loss, computing inventory costs a distraught employee, Fang W. Arson, put a torch to a manufacturing plant on a blustery February 26. The resulting blaze destroyed the plant and its contents....

Benton Corporation produces two grades of wine from grapes that it buys from California growers. It produces and sells roughly 3,000,000 liters per year of a low-cost, high-volume product called...

Comm Devices (CD) is a division of Worldwide Communications, Inc. CD produces pagers and other personal communication devices. These devices are sold to other Worldwide divisions, as well as to other...

Use a weighted score model to choose between three methods (A, B, C) of financing the acquisition of a major competitor. The relative weights for each criterion are shown in the following table as...

Old Tyme Soda produces one flavor of a popular local soft drink. It had no work in process on October 31 in its only inventory account. During November, Old Tyme started 10,000 barrels. Work in...

Carpet City recorded the following data on carpet installations over the past week. Use the data to calculate the average rate (in yards per hour) at which carpet can beinstalled. Installation Square...

Eddie's Bar and Restaurant Supplies expects its revenues and payments for the first part of the year to be: Seventy percent of the firm's sales are on credit. Past experience shows that 40 percent of...

Dyna Distribution markets CDs of the performing artist King James. At the beginning of March, Dyna had in beginning inventory 1,500 King James CDs with a unit cost of $7. During March, Dyna made the...

The annual report is considered by some to be the single most important printed document that companies produce. In recent years, annual reports have become large documents. They now include such...

Selected journal entries for the Joel Berges Company are presented in BE2-7. In BE2-7, selected transactions for the Joel Berges Company are presented in journal form below. Post the transactions to...

Describe the three major activities of a manager.

Hielta Oy, a Finnish company, processes wood pulp for various manufacturers of paper products. Data relating to tons of pulp processed during June are provided below: Required: 1. Compute the number...

Multiple Choice. Choose the best answer. 1. Which of the following would not be considered a general long-term liability? a. The estimated liability to clean up the fuel and hazard waste storage...

Discuss the marketing strategy and tactical mistakes Google made when introducing the Nexus One. Did you buy a Google Nexus One smartphone when it hit the market in early 2010? Didnt think sofew...

Toms Shoe Repair provides a variety of shoe and repair services. Analysis of monthly costs revealed the following cost formulas when direct labor hours are used as the basis of cost determination:...

After spending $3 million on research, Better Mousetraps has developed a new trap. The project requires an initial investment in plant and equipment of $6 million. This investment will be depreciated...

Refer to Golden Corporations financial statements and related information in Problem 16- 4A. In Problem 16- 4A, Golden Corp., a merchandiser, recently completed its 2013 operations. For the year, (1)...

The Collectors Choice Inc. ( CCI), a luxury car import company, has an old warehouse at the Port of Miami, Florida, where it temporarily stores expensive sports cars and automotive parts that arrive...

Allocating costs of support departments; step-down and direct methods, the Central Valley Company has prepared department overhead budgets for budgeted-volume levels before allocations as follows:...

The trial balance before adjustment for Phil Collins Company shows the following balances. Instructions Using the data above, prepare the journal entries required to record each of the following...

Draw the network representation of the following network flow problem. MIN: +7X12 + 6X14 + 3X23 + 4X24 + 5X32 + 9X43 + 8X52 + 5X54 Subject to: - X12 - X14= -5 +X12 + X52 + X32 - X23 - X24 = +4 - X32...

Jason Elsner started his own consulting firm, Elsner Company, on June 1, 2014. The trial balance at June 30 is shown below. In addition to those accounts listed on the trial balance, the chart of...

Knockoffs Unlimited, a nationwide distributor of low-cost imitation designer necklaces, has an exclusive franchise on the distribution of the necklaces, and sales have grown so rapidly over the past...

Chapman Company, a major retailer of bicycles and accessories, operates several stores and is a publicly traded company. The comparative balance sheet and income statement for Chapman as of May 31,...

Sales for the past 12 months at Dalworth Company are given here. a. Use a three month moving average to forecast the sales for the months May through December. b. Use a four-month moving average to...

Ray Company provided the following excerpts from its Production Department's flexible budget performance report: Required: Complete the Production Department's Flexible Budget Performance Report by...

Suppose the Kalamazoo Brewing Company (KBC) currently sells its microbrews in a seven-state area: Illinois, Indiana, Michigan, Minnesota, Mississippi, Ohio, and Wisconsin. The companys marketing...

Kanye Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the manufacture of a new product. The machine will cost $176,000, has an estimated useful life of 7 years, a...

A payroll summary for Mark Consulting Company, owned by Mark Fronke, for the quarter ending June 30, 2016, appears on page 360. The firm made the required tax deposits as follows: a. For April taxes,...

ABC, wholesale, customer profitability Ramirez Wholesalers operates at capacity and sells furniture items to four department-store chains (customers). Mr. Ramirez commented, "We apply ABC to...

1. What steps in the decision-making process have Don Anglos and Pinnacle taken? Which ones have they not completed? 2. Which decision-making style best describes Dons approach: directive,...

For each of the following procedures taken from the quality control manual of a CPA firm, identify the applicable element of quality control from Table 2-4. a. Appropriate accounting and auditing...

Gormley Precision Tools makes cutting tools for metalworking operations. It makes two types of tools: A6, a regular cutting tool, and EX4, a high-precision cutting tool. A6 is manufactured on a...

Assume that Norway and Sweden trade with each other, with Norway exporting fish to Sweden, and Sweden exporting Volvos (automobiles) to Norway. Illustrate the gains from trade between the two...

The French government announced plans to convert state- owned power firms EDF and GDF into separate limited companies that operate in geographically distinct markets. BBC News reported that Frances...

Multiple Choice Questions The following are general questions about internal control. Choose the best response. a. When considering internal control, an auditor must be aware of the concept of...

Peninsula Candy Company makes three types of candy bars: Chewy, Chunky, and Choco-Lite (Lite). Sales volume for the annual budget is determined by estimating the total market volume for candy bars...

1. What do you think of Walmarts green initiatives? Will it ever be able to achieve the reputation of being environmentally friendly? Discuss. 2. Why do you think suppliers might be reluctant to be...