Questions and Answers of Essentials Of Accounting For Governmental

Tashiro Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as
Using the data for Loudermilk Inc. in Exercise 21-17, Data from Exercise 21-17,For the coming year, Loudermilk Inc. anticipates fixed costs of $600,000, a unit variable cost of $75, and a unit
Home Run Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $712,000, and the sales mix is 60% bats and 40% gloves. The unit selling price and the
a. If Del Rosario Company, with a break-even point at $1,160,000 of sales, has actual sales of $1,450,000, what is the margin of safety expressed (1) In dollars (2) As a percentage of
Alvarez Manufacturing Inc. is a job shop. The management of Alvarez Manufacturing Inc. uses the cost information from the job sheets to assess cost performance. Information on the total cost, product
Buena Montana Carpet Company manufactures carpets. Fiber is placed in process in the Spinning Department, where it is spun into yarn. The output of the Spinning Department is transferred to the
Which of the following industries would typically use job order costing, and which would typically use process costing?Dentist Movie studioGasoline refining Paper manufacturingFlour
Ivy Cosmetics Company consists of two departments, Blending and Filling. The Filling Department received 72,000 ounces from the Blending Department. During the period, the Filling Department
Blackrock Steel Company has two departments, Casting and Rolling. In the Rolling Department, ingots from the Casting Department are rolled into steel sheet. The Rolling Department received 13,900
The chief cost accountant for Voltaire Beverage Co. estimated that total factory overhead cost for the Blending Department for the coming fiscal year beginning May 1 would be $2,340,000 and total
The Filling Department of Ivy Cosmetics Company had 6,000 ounces in beginning work in process inventory (60% complete). During the period, 68,000 ounces were completed. The ending work in process
The Converting Department of Soft Touch Towel and Tissue Company had 2,600 units in work in process at the beginning of the period, which were 35% complete. During the period, 23,800 units were
The Rolling Department of Blackrock Steel Company had 800 tons in beginning work in process inventory (20% complete). During the period, 12,700 tons were completed. The ending work in process
Mochaccino 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
Units of production data for the two departments of Mediterranean Cable and Wire Company for November of the current fiscal year are as follows:If all direct materials are placed in process at the
The Filling Department of Ivy Cosmetics Company had 6,000 ounces in beginning work in process inventory (60% complete). During the period, 68,000 ounces were completed. The ending work in process
The following information concerns production in the Baking Department for March. All direct materials are placed in process at the beginning of production.a. Determine the number of units in work in
The Rolling Department of Blackrock Steel Company had 800 tons in beginning work in process inventory (20% complete). During the period, 12,700 tons were completed. The ending work in process
a. Based on the data in Exercise 20-7, determine the following for March:1. Direct materials cost per equivalent unit2. Conversion cost per equivalent unit3. Cost of the beginning work in process
The cost of direct materials transferred into the Filling Department of Ivy Cosmetics Company is $43,200. The conversion cost for the period in the Filling Department is $16,725. The total equivalent
The cost of direct materials transferred into the Rolling Department of BlackRock Steel Company is $625,500. The conversion cost for the period in the Rolling Department is $157,680. The total
Wyoming Products Inc. completed and transferred 124,200 particle board units of production from the Pressing Department. There was no beginning inventory in process in the department. The ending
The costs per equivalent unit of direct materials and conversion in the Filling Department of Ivy Cosmetics Company are $0.60 and $0.25, respectively. The equivalent units to be assigned costs are as
The cost of materials transferred into the Filling Department of Ivy Cosmetics Company is $43,200, including $50,300 from the Blending Department and $12,900 from the materials storeroom. The
The cost of materials transferred into the Rolling Department of Blackrock Steel Company is $625,500 from the Casting Department. The conversion cost for the period in the Rolling Department is
The costs of energy consumed in producing good units in the Baking Department of Victor Company were $26,160 and $26,265 for June and July, respectively. The number of equivalent units produced in
The costs of materials consumed in producing good units in the Forming Department of McMillan Company were $26,160 and $26,265 for September and October, respectively. The number of equivalent units
The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with information concerning production, are as follows:All direct materials are placed in
The manufacturing costs of KellamS Industries for the first three months of the year follow:Using the high-low method, determine (a) The variable cost per unit. (b) The total fixed cost.
The manufacturing costs of Barretto Enterprises for three months of the year follow:Using the high-low method, determine (a) The variable cost per unit. (b) The total fixed cost. Total Cost
Chillingsworth Industries Inc., operating at full capacity, sold 35,000 units at a price of $90 per unit during the current year. Its income statement is as follows:The division of costs between
Ferrante Company sells 90,000 units at $60 per unit. Variable costs are $42 per unit, and fixed costs are $550,000. Determine (a) The contribution margin ratio. (b) The unit contribution
Morrison Company sells 124,000 units at $16 per unit. Variable costs are $12 per unit, and fixed costs are $144,000. Determine (a) The contribution margin ratio. (b) The unit contribution
Lablanc Inc. sells a product for $500 per unit. The variable cost is $350 per unit, while fixed costs are $1,170,000. Determine (a) The break-even point in sales units. (b) The break-even
Data related to the expected sales of two types of frozen pizzas for Cappelletti Frozen Foods Inc. for the current year, which is typical of recent years, are as follows:The estimated fixed costs for
O'Shaughnessy Inc. sells a product for $90 per unit. The variable cost is $65 per unit, while fixed costs are $65,000. Determine (a) The break-even point in sales units. (b) The break-even
Altstadt Inc. sells a product for $50 per unit. The variable cost is $20 per unit, and fixed costs are $1,800,000. Determine (a) The break-even point in sales units. (b) The breakeven point
Yusuf Company sells a product for $220 per unit. The variable cost is $170 per unit, and fixed costs are $180,000. Determine (a) The break-even point in sales units. (b) The break-even
Quality Containers Industries Inc. has fixed costs of $368,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company’s two products follow:The sales mix
a. Imelda Company budgets sales of $1,800,000, fixed costs of $394,000, and variable costs of $1,116,000. What is the contribution margin ratio for Imelda Company?b. If the contribution margin ratio
Olmstead Company has fixed costs of $459,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company’s two products follow:The sales mix for Products QQ
Felipe Enterprises reports the following data:Sales ......................................... $330,000Variable costs ............................ 140,000Contribution margin ...............
For the current year ended October 31, Papadakis Company expects fixed costs of $12,600,000, a unit variable cost of $360, and a unit selling price of $540.a. Compute the anticipated break-even sales
Teague Co. reports the following data:Sales ......................................... $725,000Variable costs ............................ 373,000Contribution margin ............... $352,000Fixed
Anheuser-Busch InBev Companies, Inc., reported the following operating information for a recent year (in millions):In addition, assume that Anheuser-Busch InBev sold 400 million barrels of beer
Quick Inc. has sales of $36,400,000, and the break-even point in sales dollars is $24,024,000. Determine the company’s margin of safety as a percent of current sales.
Currently, the unit selling price of a product is $750, the unit variable cost is $600, and the total fixed costs are $2,550,000. A proposal is being evaluated to increase the unit selling price to
Jonick Inc. has sales of $ 740,000, and the break-even point in sales dollars is $ 547,000. Determine the company’s margin of safety as a percent of current sales.
Sprint Corporation is one of the largest digital wireless service providers in the United States. In a recent year, it had approximately 32.6 million direct subscribers (accounts) that generated
The charges to Work in Process—Assembly Department for a period, together with information concerning production, are as follows. All direct materials are placed in process at the beginning of
a. Based on the data in Exercise 20-11, determine the following: 1. Cost of beginning work in process inventory completed this period2. Cost of units transferred to finished goods during the
The costs per equivalent unit of direct materials and conversion in the Rolling Department of Blackrock Steel Company are $45 and $12, respectively. The equivalent units to be assigned costs are as
For a recent year, McDonald’s company-owned restaurants had the following sales and expenses (in millions):Assume that the variable costs consist of food and packaging; payroll; and 40% of the
The following events took place for Migliozzi Inc. during July, the first month of operations as a producer of road bikes:• Purchased $416,000 of materials• Used $358,000 of direct materials in
Entrepreneurial Publishing Inc. began printing operations on January 1. Jobs 301 and 302 were completed during the month, and all costs applicable to them were recorded on the related cost sheets.
Novello Medical Center has a single operating room that is used by local physicians to perform surgical procedures. The cost of using the operating room is accumulated by each patient procedure and
At the end of August, Carrothers Company had completed Jobs 50 and 56. Job 50 is for 1,000 units, and Job 56 is for 500 units. Using the data from Practice Exercises 19-1B, 19-2B, and 19-4B,
Road Runner Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows:Engine parts
At the end of May, Lockmiller Company had completed Jobs 275 and 310. Job 275 is for 5,000 units, and Job 310 is for 2,000 units. Using the data from Practice Exercises 19-1A, 19-2A, and 19-4A,
Montenegro Metal Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Factory 1 and on the basis of direct labor hours in Factory 2. Estimated
Carrother Company estimates that total factory overhead costs will be $960,000 for the year. Direct labor hours are estimated to be 80,000. For Carrother Company, (a) Determine the
Townsend Industries Inc. manufactures recreational vehicles. Townsend uses a job order cost system. The time tickets from November jobs are summarized as follows:Job 201
Lockmiller Company estimates that total factory overhead costs will be $867,000 for the year. Direct labor hours are estimated to be 102,000. For Lockmiller Company, (a) Determine the
During August, Carrothers Company incurred factory overhead costs as follows: indirect materials, $16,400; indirect labor, $21,300; utilities cost, $8,900; and factory depreciation, $17,100.
A summary of the time tickets for the current month follows:Journalize the entry to record the factory labor costs. Job No. Amount Job No. Amount $ 7,800 $ 8,500 4,400 100 Indirect 101 11,900 111 104
During May, Lockmiller Company incurred factory overhead costs as follows: indirect materials, $9,700; indirect labor, $7,300; utilities cost, $5,200; and factory depreciation, $10,100. Journalize
The weekly time tickets indicate the following distribution of labor hours for three direct labor employees:The direct labor rate earned per hour by the three employees is as follows:Tom Couro
During May, Lockmiller Company accumulated 1,900 hours of direct labor costs on Job 275 and 2,600 hours on Job 310. The total direct labor was incurred at a rate of $34 per direct labor hour for Job
During August, Carrothers Company accumulated 4,300 hours of direct labor costs on Job 50 and 5,100 hours on Job 56. The total direct labor was incurred at a rate of $21.00 per direct labor hour for
Yellen Furnishings manufactures designer furniture. Yellen Furnishings uses a job order cost system. Balances on June 1 from the materials ledger are as follows:Fabric ...........................
Kaymer Industries Inc. uses a job order cost system. The following data summarize the operations related to production for January, the first month of operations:a. Materials purchased on account,
On August 4, Carrother Company purchased on account 31,000 units of raw materials at $16 per unit. During August, raw materials were requisitioned for production as follows: 7,900 units for Job 50 at
On May 7, Lockmiller Company purchased on account 12,000 units of raw materials at $6 per unit. During May, raw materials were requisitioned for production as follows: 8,400 units for Job 275 at $6
Velasco Co. uses a job order cost system. The following data summarize the operations related to production for July:a. Materials purchased on account, $203,940.b. Materials requisitioned, $191,480,
The following information is available for Aricanly Manufacturing Company for the month ending January 31:Cost of goods manufactured ................... $3,606,000Selling expenses
Two items are omitted from each of the following three lists of cost of goods sold data from a manufacturing company income statement. Determine the amounts of the missing items, identifying them by
Sepulveda Manufacturing Company reported the following materials data for the month ending November 30:Materials purchased .................................... $572,400Materials inventory, November 1
Two items are omitted from each of the following three lists of cost of goods manufactured statement data. Determine the amounts of the missing items, identifying them by letter. Work in process
Partial balance sheet data for Upper Crust Company at August 31 are as follows:Prepare the Current assets section of Upper Crust Company’s balance sheet at August 31. Finished goods inventory
The following events took place for Technology Treasures Manufacturing Company during January, the first month of its operations as a producer of digital video monitors:a. Purchased $142,900 of
Manhattan Company has the following information for November:Cost of direct materials used in production ........... $230,700Direct labor
Princetone 3 Company has the following information for May: Cost of direct materials used in production .......... $17,000Direct labor
The following information is available for Robstown Corporation for 20Y8:Instructions1. Prepare the statement of cost of goods manufactured.2. Prepare the income statement. January 1 $ 50,100
The comparative accounts payable and long-term debt balances for a company follow.Based on this information, what is the amount and percentage of increase or decrease that would be shown on a balance
The table that follows shows the stock price, earnings per share, and dividends per share for three companies for a recent year:a. Determine the price-earnings ratio and dividend yield for the three
The following comparative income statement (in thousands of dollars) for two recent fiscal years was adapted from the annual report of Speedway Motorsports, Inc., owner and operator of several major
The comparative temporary investments and inventory balances of a company follow.Based on this information, what is the amount and percentage of increase or decrease that would be shown on a balance
Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows:a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales.
For 20Y2, Gerhardt Inc. reported a significant increase in net income. At the end of the year, John Mayer, the president, is presented with the following condensed comparative income
The financial statements for Nike, Inc., are presented in Appendix C at the end of the text. Use the following additional information (in thousands):Accounts receivable at May 31, 2018 ............ $
Income statement information for Turay Corporation follows:Prepare a vertical analysis of the income statement for Turay Corporation. Sales $200,000 Cost of merchandise sold Gross profit 140,000
Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. Tannenhill’s data are expressed in dollars. The electronics industry
Income statement information for Ivanoff Corporation follows:pare a vertical analysis of the income statement for Ivanoff Corporation. Sales $1,400,000 Cost of merchandise sold 812,000 Gross profit
Balance sheet data for Kwan Company on December 31, the end of two recent fiscal years, follow:Prepare a comparative balance sheet for both years, stating each asset as a percent of total assets and
The condensed income statements through income from operations for Amazon.com, Inc., Best Buy, Inc., and Wal-Mart Stores, Inc. for a recent fiscal year follow (in millions):1. Prepare comparative
Deere & Company manufactures and distributes farm and construction machinery that it sells around the world. In addition to its manufacturing operations, Deere’s credit division loans money to
The following items are reported on a company’s balance sheet:Determine (a) The current ratio and (b) The quick ratio. Round to one decimal place. $320,000 170,000 Cash Marketable
The following data were taken from the balance sheet of Albertini Company at the end of two recent fiscal years:a. Determine for each year (1) The working capital, (2) The current ratio,
Marriott International, Inc., and Hyatt Hotels Corporation are two major owners and managers of lodging and resort properties in the United States. Abstracted income statement information for the two
A company reports the following:Sales ............................................................ $1,460,000Average accounts receivable (net) ................ 100,000Determine (a) The accounts

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