Classification of Costs and Interest Capitalization On January 1, 2010, Blair Corporation purchased for $500,000 a tract of land (site number 101) with a building. Blair paid a real estate brokers...
You run a game day shuttle service for parking services for the local ball club. Your costs for different customer loads are 1: $30, 2: $32, 3: $35, 4: $38, 5: $42, 6: $48, 7: $57, and 8: $68. What...
Following are two income statements for Alexis Co. for the year ended December 31. The left column is prepared before any adjusting entries are recorded, and the right column includes the effects of...
1. How can Wikipedia maintain and grow its ability to harness the crowd sourcing of its Wikipedians to maintain high-quality (and quickly updated) content? 2. As Wikipedia keeps growing, do you think...
Wiengot Antennas, Inc., produces and sells a unique type of TV antenna. The company has just opened a new plant to manufacture the antenna, and the following cost and revenue data have been provided...
The Clampett Oil Company has a tanker truck that it uses to deliver fuel to customers. The tanker has five different storage compartments with capacities to hold 2,500, 2,000, 1,500, 1,800 and 2,300...
CVP analysis, changing revenues and costs Sunny Spot Travel Agency specializes in flights between Toronto and Jamaica. It books passengers on Canadian Air. Sunny Spots fixed costs are $23,500 per...
The following items and amounts were taken from Motte Inc.s 2014 income statement and balance sheet. Instructions (a) In each, case, identify on the blank line whether the item is an asset (A),...
Categorize each of the following characteristics as being either more representative of a traditional organization or a lean organization. 1. Manufacturing plants tend to be organized with self-...
Tri-State Bank and Trust is considering giving Wilfred Company a loan. Before doing so, management decides that further discussions with Wilfreds accountant may be desirable. One area of particular...
The H & L Bark Company is considering the purchase of a debarking machine that is expected to provide cash flows as follows: If the appropriate annual discount rate is 14 percent, what is the present...
Georgia Supply Corporation, a merchandising firm, prepared the following trial balance as of October 1: Georgia Supply engaged in the following transactions during October 2011. The company records...
Ramirez Wholesalers operates at capacity and sells furniture items to four department-store chains (customers). Mr. Ramirez commented, We apply ABC to determine product-line profitability. The same...
The Mead Company uses a perpetual inventory system and engaged in the following transactions during the month of May: Date Transaction_______________________________________________ May 1 Made cash...
A power company is considering how to increase its generating capacity to meet expected demand in its growing service area. Currently, the company has 750 megawatts (MW) of generating capacity but...
Below is the Retained Earnings account for the year 2012 for Acadian Corp. Instructions(a) Prepare a corrected retained earnings statement. Acadian Corp. normally sells investments of the type...
Brett has almond orchards, but he is sick of almonds and prefers to eat walnuts instead. The owner of the walnut orchard next door has offered to swap this years crop with him. Assume he produces...
Springfield Bank is evaluating Creek Enterprises, which has requested a $4,000,000 loan, to assess the firm's financial leverage and financial risk. On the basis of the debt ratios for Creek, along...
A family friend has asked your help in analyzing the operations of three anonymous companies operating in the same service sector industry. Supply the missing data in the tablebelow: et operating...
Plant acquisitions for selected companies are as follows. 1. Belanna Industries Inc. acquired land, buildings, and equipment from a bankrupt company, Torres Co., for a lump sum price of $700,000. At...
American Surety and Fidelity buys and sells securities expecting to earn profits on short-term differences in price. For the first 11 months of 2011, gains from selling trading securities totaled $8...
Multiple Choice Questions, 1. After massive promotion of Justin Bieber's latest music album, the producers reacted by raising prices for his albums. This implies that promotion expenditures made the...
1. From Sweeny Electronics standpoint, what difficulties might Nakeishas performance appraisal practices create? 2. What can Nakeisha do now to diminish the negative impact of her evaluation of Bill?
VIP Limo Service was organized to provide limousine service between the airport and various suburban locations. It has just completed its second year of business. Its trial balance is below. The...
Consider a three- firm supply chain consisting of a retailer, manufacturer, and supplier. The retailers demand over an 8- week period was 100 units each of the first 2 weeks, 200 units each of the...
Jellyfish Machine Shop is a manufacturer of motorized carts for vacation resorts. Patrick Cullin, the plant manager of Jellyfish, obtains the following information for Job # 10 in August 2014. A...
Tami Tyler opened Tamis Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms....
Stallman Company took a physical inventory on December 31 and determined that goods costing $200,000 were on hand. Not included in the physical count were $25,000 of goods purchased from Pelzer...
1. What overall changes could you recommend to the executive team at Egans about its HR practices? 2. What are the pros and cons of Egans performance appraisal system? Do you think it identifies the...
The Northshire Hospital Trust operates two types of specialist X-ray scanning machines, XR1 and XR50. Details for the next period are estimated as follows: A brain scan is normally carried out on...
A common-size income statement for Creek Enterprises 2011 operations follows. Using the firms 2012 income statement presented in Problem 318, develop the 2012 common-size income statement and compare...
Green Pastures is a 400-acre farm on the outskirts of the Kentucky Bluegrass, specializing in the boarding of broodmares and their foals. A recent economic downturn in the thoroughbred industry has...
On September 15, Krug Company purchased merchandise inventory from Makarov with an invoice price of $ 35,000 and credit terms of 2/10, n/30. Schneider Company paid Makarov on September 28. Prepare...
Trey Monson starts a merchandising business on December 1 and enters into the following three inventory purchases. During December, Monson sells 15 units for $ 20 each on December 15. Purchases on...
Tom Parkey has prepared the following list of statements about depreciation. 1. Depreciation is a process of asset valuation, not cost allocation. 2. Depreciation provides for the proper matching of...
During the fiscal year ended December 31, Swanson Corporation engaged in the following transactions involving notes payable: Aug. 6 Borrowed $12,000 from Maple Grove Bank, signing a 45-day, 12...
The Burger Doodle restaurant chain uses a distribution center to prepare the food ingredients it provides its individual restaurants. The company is attempting to determine the location for a new...
The following cost graphs illustrate various types of cost behavior: For each of the following costs, identify the cost graph that best illustrates its cost behavior as the number of units produced...
Jay Rexford, president of Photo Artistry Company, was just concluding a budget meeting with his senior staff. It was November of 20x4, and the group was discussing preparation of the firms master...
Moody Corporation uses a job-order costing system with a plantwide overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates: Machine-hours required...
On its acquisition-date consolidated balance sheet, what amount should TruData report as goodwill? a. 0. b. $15,000. c. $35,000. d. $100,000. On July 1, TruData Company issues 10,000 shares of its...
Linden Company manufactures and sells a single product. Cost data for the product follow: Variable costs per unit: Direct materials. . . . . . . . . . . . . . . . . . . . . . . . . $ 6 Direct labor ....
Frito-Lay has flourished since its origin-the 1931 purchases of a small San Antonio firm for $100 that included a recipe, 19 retail accounts, and a hand-operated potato ricer. The...
The accounts receivable clerk for Thunderwood Industries prepared the following partially completed aging of receivables schedule as of the end of business on August 31: The following accounts were...
The Robbins Corporation is an oil wholesaler. The firms sales last year were $1 million, with the cost of goods sold equal to $600,000. The firm paid interest of $200,000 and its cash operating...
Calculate the nominal annual cost of non-free trade credit under each of the following terms. Assume payment is made either on the due date or on the discount date. a. 1/15, net 20. b. 2/10, net 60....
Describe how electronic purchasing has changed the B-to-B marketing process and discuss the advantages and disadvantages of electronic purchasing.
A weekly payroll summary made from labor time records shows the following data for Musketeer Manufacturing Company: Overtime is payable at one-and-a-half times the regular rate of pay for an employee...
The Conch Oil Company needs to transport 30 million barrels of crude oil from a port in Doha, Qatar in the Persian Gulf to three refineries throughout Europe. The refineries are in Rotterdam,...
Ling Company reports the following information for the year ended December 31, 2014: sales revenue $1,000,000, cost of goods sold $700,000, operating expenses $200,000, and an unrealized gain on...
Use the longest work element rule to balance the assembly line described in the following table and Figure so that it will produce 40 units per hour. a. What is the cycle time? b. What is the...
Following is information from Fredrickson Company for its initial month of business. (1) Identify the balances listed in the accounts receivable subsidiary ledger. (2) Identify the accounts...
Tombert Decorating uses a job order cost system to collect the costs of its interior decorating business. Each clients consultation is treated as a separate job. Overhead is applied to each job based...
Figurate Industries has 750,000 shares of cumulative preferred stock outstanding. It has passed the last three quarterly dividends of $2.50 per share and now (at the end of the current quarter)...
A guitar manufacturer is considering eliminating its electric guitar division because its $ 76,000 expenses are higher than its $ 72,000 sales. The company reports the following expenses for this...
1. Briefly describe the three determinants of performancedeclarative knowledge, procedural knowledge, and motivationand based on the information provided, give examples of each for both Maria and...
(Entries for Various Dilutive Securities) The stockholders equity section of Martino Inc. at the beginning of the current year appears below. Common stock , $10 par value, authorized 1,000,000...
The following are summary cash transactions that occurred during the year for Hilliard Healthcare Co. (HHC): Cash Received from: Customers ........ $660,000 Interest on note receivables .. 12,000...
Everly Corporation acquires a coal mine at a cost of $400,000. Intangible development costs total $100,000. After extraction has occurred, Everly must restore the property (estimated fair value of...
The Hartford Symphony Guild is planning its annual dinner-dance. The dinner-dance committee has assembled the following expected costs for the event: The committee members would like to charge $35...
Valtec Electronics fills orders for its electronic components and parts by truck to customers through several distribution centers. A measure of its supply chain responsiveness is order fulfillment...
1. Evaluate the current China/Taiwan logistics costs. Assume a current total volume of 190,000 CBM and the 89% is shipped direct from the supplier plants in containers. Use the data from the case and...
Jacksonville Financial Services Co., which specializes in appliance repair services, is owned and operated by Cindy Latty. Jacksonville Financial Services Co.??s accounting clerk prepared the...
The following table shows a tool and die companys quarterly sales for the current year. What sales would you predict for the first quarter of next year? Quarter relatives are SR1 = 1.10, SR2 = .99,...
Jan Nab is the sole owner of Deer Park, a public camping ground near the Lake Mead National Recreation Area. Jan has compiled the following financial information as of December 31, 2010....
Thomas Magnum began operations as a private investigator on January 1, 2010. The trial balance columns of the worksheet for Thomas Magnum, P.I. at March 31 are as follows. Other data:1. Supplies on...
At the beginning of the current period, Engseth Corp. had balances in Accounts Receivable of $200,000 and in Allowance for Doubtful Accounts of $9,000 (credit). During the period, it had net credit...
Job costing'service industry. Cam Cody schedules book signings for science fiction authors and creates e-books and books on CD to sell at each signing. Cody uses a normal-costing system with two...
Hi-Test Company uses the weighted-average method of process costing to assign production costs to its products. Information for September follows. Assume that all materials are added at the beginning...
Rodriquez Corporations comparative balance sheets are presented below. Additional information: 1. Net income was $18,300. Dividends declared and paid were $16,400. 2. Equipment which cost $10,000 and...
Various cost and sales data for Meriwell Company for the just completed year appear in the worksheet below: Finished goods inventory, beginning $20,000 Finished goods inventory, ending $40,000...
The stockholders?? equity section of Sosa Corporation appears below as of December 31, 2012. Net income for 2012 reflects a total effective tax rate of 34%. Included in the net income figure is a...
CVP, target operating income, service firm Snow Leopard Daycare provides daycare for children Mondays through Fridays. Its monthly variable costs per child are as follows: Lunch and snacks $150...
1. Where do you stand? Do you think EU subsidies and soft loans to Airbus are fair? Why or why not? What advantages does Airbus gain from free financial support from the EU governments? Are...
Perth Inc.'s bank statement from Main Street Bank at August 31, 2017, gives the following information. A summary of the Cash account in the ledger for August shows the following: balance, August 1,...
Using the numerical example in problem 5, assume now that Foreign limits immigration so that only 2 workers can move there from Home. Calculate how the movement of these two workers affects the...
Milo Company had a beginning inventory of 400 units of Product Kimbo at a cost of $8 per unit. During the year, purchases were: Milo Company uses a periodic inventory system. Sales totaled 1,500...
Chiptech, Inc., is an established computer chip firm with several profitable existing products as well as some promising new products in development. The company earned $1 a share last year, and just...
Controlling inventory is one of Wheeled Coachs toughest problems. Operating according to strategy of mass customization and responsiveness, management knows that success is dependent on tight...
Boyne Inc. had beginning inventory of $12,000 at cost and $20,000 at retail. Net purchases were $120,000 at cost and $170,000 at retail. Net markups were $10,000; net markdowns were $7,000; and sales...
With social media becoming increasingly important and fewer people watching traditional commercials on television, what does P&G need to do to maintain its strong brand images?
On December 31, 2012, Ryan Stewart completed the first year of operations for his new computer retail store. The following data were obtained from the companys accounting records: 1. How much net...
Spamela Hamderson Inc. reports the following pretax income (loss) for both financial reporting purposes and tax purposes. (Assume the carryback provision is used for a net operating loss.) The tax...
Before Gordon Corporation engages in the treasury stock transactions listed below, its general ledger reflects, among others, the following account balances (par value of its stock is $30 per share)....
Carlos Ramirez and Camila Garza organized New World Book Store as a corporation; each contributed $80.000 cash to start the business and received 4,000 shares of common stock. The store completed its...
The variety of Riverside Ranger logo T-shirts includes 12 different designs. Setup between designs takes one hour (and $18,000), and, after setting up, you can produce 1,000 units of a particular...
The Big Black Bird Company produces fiberglass camper tops. The process for producing the tops must be controlled so as to keep the number of dimples low: When the process was in control, the...
Danielle Manning, D.D.S., opened a dental practice on January 1, 2012. During the first month of operations, the following transactions occurred. 1. Performed services for patients who had dental...
Evaluating strategies on a continuous rather than a periodic basis is desired. Discuss the pros and cons of this statement.
Raymond Autobody Shop has the followingaccounts: Accounts Payable Service Revenue Cash Equipment Utilities Expense Common Stock Automotive Supplies Advertising Expense Dividends Unearned Revenue...
Sunrise Swimwear manufactures ladies swimwear in January through June of each year that is sold through retail outlets in March through August. The following table summarizes the monthly production...
The following activities occur at Greenwich Corporation, a company that manufactures a variety of products. a. Receive raw materials from suppliers. b. Manage parts inventories. c. Do rough milling...
Ariba Coffee Company roasts and packs coffee beans. The process begins by placing coffee beans into the Roasting Department. From the Roasting Department, coffee beans are then transferred to the...
Coca-Cola has sustained success in the maturity stage of the product life cycle for many years. Discuss how Coca-Cola has evolved over the years. Identify ways that Coca-Cola can continue to evolve...
Refinancing of Short-Term Debt On December 31, 2010, Santana Company has $7,000,000 of short-term debt in the form of notes payable to Golden State Bank due in 2011. On January 28, 2011, Santana...
The controller of Furgee Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs. Instructions (a) Determine the fixed- and...
Fill in the missing amounts in each of the eight case situations below. Each case is independent of the others. a. Assume that only one product is being sold in each of the four following case...
By focusing on the Pay Less part of its slogan, has Target pursued the best strategy? Why or why not? When you hear the term discount retail, two names that usually come to mind: Walmart and Target....
The names of the employees of Cox Security Systems and their regular salaries are shown in the following payroll register. Note that Hall and Short are paid monthly on the last payday, while all...
Anton Blair is the manager of a medium- size company. A few years ago, Blair persuaded the owner to base a part of his compensation on the net income the company earns each year. Each December he...