Sales $828,920Cost of goods sold 334,960Gross margin 493,960Selling and administrative expenses:Selling expenses $246,000Administrative expenses 152,000 398,000Net operating income $95,960Skis sell, on the average, for $391 per pair. Variable selling expenses are $49 per pair of skis sold. The remaining selling expenses are fixed. The administrativeexpenses are 24% variable and 76% fixed. The company does not manufacture its own skis; it purchases them from a supplier for $158 per pair.
Wright Company produces products I, J, and K from a single raw material input. Budgeted data for the next month follows:Product I Product J Product KUnits produced 2,600 3,100 4,100Per unit sales value at split-off $21 $23 $26Added processing costs per unit $5 $7 $7Per unit sales value if processed further $29 $29 $34If the cost of the raw material input is $89,000, which of the products should be processed beyond the split-off point?Product I Product J Product KA) yes yes noB) yes no yesC) no yes noD) no yes yesOption BOption DOption COption A
In a present value or future value table, the length of one time period may be interpreted as one year, one month, or any other length of time. True / False
once you have the contribution margin ratio. How do you use it?asume a contribution margin ratio of 25%how much profit will an additional thousand dollars in sales generate?(Hint; additional sales*contribution margin ratio)
Can you please show me how to start to problem and the entries needed.Thanks
Gazz Electronics manufactures audio equipment, selling itthrough various distributors.Gazz's days sales outstanding (Accounts Receivable/Avg dailycredit sales) figures increased steadily in 2008 &spikeddramatically in 2009, peaking at 120 daysin the 2nd quarter. Inthe 3rd quarter of 2009, Gazz's day sales outstanding figuredropped to 90 days. Its CFO engineered this drop by artificiallyreducing theamount of outstanding accounts receivable.Channel partners with large outstanding receivables were pressuredinto signing notes for those amounts. Once sale personnel securedthe notes, the CFO directed areclassification entry to the generalledger, converting more than $30 million in trade receivables intonotes receivables, which are not included in the daysalesoutstanding calculation.This reclassification was not disclosed in the Form 10-Q that Gazzfiled for that quarter.What might be the motive for the CFO's actions? Explainyour answer.
a post closing trial balance contains only asset and liability accounts
Calculate the unknowns for the following situations based on the given data.Actual total sales revenue $400,000Total fixed cost $75,000Unit variable cost $15Contribution margin ratio 40%Calculate the:a) breakeven point in dollarsb) unit selling pricec) unit contribution margind) breakeven point in unitse) margin of safety
Which of the following is not a reason standard costs are separated in two components?a. the price and quantity variances need to be identified separately to correct the actual major differences.b. identifying variances determines which manager must find a solution to major discrepancies.c. if a negative variance is over-shadowed by a favorable variance, managers may overlook potential corrections.d. variances brings attention to discrepancies in the budget and requires managers to revise budgets closer to actual.
Chapter 4 the comprehensive problem about Mansfield.
All of the following are allowed a For AGI deduction except
If $1,000,000 of 8% bonds are issued at 105, the amount of cash received from the sale is:1) $1,000,0002) $1,080,0003) $950,0004) $1,050,000
Mitchell Manufacturing operates in a just-in-time (JIT) manufacturing environment. Mitchell's actual conversion costs for the month of April follow:Direct and indirect labor $120,000Machine depreciation 85,000Maintenance and supplies 60,000Total conversion costs $265,000The journal entry to record April's conversion costs will include:A. a debit to Work in Process InventoryB. a debit to Raw Materials InventoryC. a credit to Raw and In Process InventoryD. a debit to Raw and In Process Inventory
Following are the general ledger account balances of Balcones Company, Inc. (BCI), as of September 30, 2009:Cash $50,000Accounts Receivable 300,000Inventory 250,000Equipment 450,000Accumulated Depreciation-Equipment 110,000Accounts Payable 350,000Income Taxes Payable 50,000Common Stock 95,000Retained Earning 100,000Sales Revenue 600,000Operating Expenses 255,000a.) Prepare a trial balance for BCI as of September 30, 2009.b.) Even if a trial balance is in balance, one or more general ledger accounts of a business may contain errors. Provide three examples of accounting errors that wouldnot cause a business’s trial balance to be out-of-balance.c.) What steps could the management of BCI take to help ensure that its accounts are error free? Write a brief memo to the company’s management listing yourrecommendations.
Only need question 4 answered!Custom Metal Works produces castings and other metal parts to customer specifications. The company uses a job-order costing system and applies overhead costs to jobson the basis of machine-hours. At the beginning of the year, the company estimated that it would work 576,000 machine-hours and incur $4,320,000 in manufacturingoverhead cost. The company had no work in process at the beginning of the year. The company spent the entire month of January working on one large order—Job 382, whichwas an order for 8,000 machined parts. Cost data for January follow:a. Raw materials purchased on account, $315,000.b. Raw materials requisitioned for production, $270,000 (80% direct and 20% indirect).c. Labor cost incurred in the factory, $190,000, of which $80,000 was direct labor and $110,000 was indirect labor.d. Depreciation recorded on factory equipment, $63,000.e. Other manufacturing overhead costs incurred, $85,000 (credit Accounts Payable).f. Manufacturing overhead cost was applied to production on the basis of 40,000 machine-hours actually worked during January.g. The completed job was moved into the finished goods warehouse on January 31 to await delivery to the customer. (In computing the dollar amount for this entry,remember that the cost of a completed job consists of direct materials, direct labor, and applied overhead.)Required:1. Prepare journal entries to record items (a) through (f) above. Ignore item (g) for the moment.a. Raw materials purchased on account, $315,000.Materials (Dr.) 315000Accounts payable (Cr.) 315000b. Raw materials requisitioned for production, $270,000 (80% direct and 20% indirect).Work in process (Dr.) 216000Factory overhead (Dr.) 54000Materials (Cr.) 270000c. Labor cost incurred in the factory, $190,000, of which $80,000 was direct labor and $110,000 was indirect labor.Work in process (Dr.) 80000Factory overhead (Dr.) 110000Wages payable (Cr.) 190000d. Depreciation recorded on factory equipment, $63,000.Factory overhead (Dr.) 63000Accumulated depreciation (Cr.) 63000e. Other manufacturing overhead costs incurred, $85,000 (credit Accounts Payable).Factory overhead (Dr.) 85000Accounts payable (Cr.) 85000f. Manufacturing overhead cost was applied to production on the basis of 40,000 machine-hours actually worked during January.Work in process (Dr.) 40000Factory overhead (Cr.) 40000g. The completed job was moved into the finished goods warehouse on January 31 to await delivery to the customer. (In computing the dollar amount for this entry,remember that the cost of a completed job consists of direct materials, direct labor, and applied overhead.)Finished goods inventory (Dr.) 336000 (216000+80000+40000)Work in process (Cr.) 336000******4. Compute the unit product cost that will appear on the job cost sheet for Job 382.Report Abuse
Loraine Company applies manufacturing overhead to jobs using a predetermined overhead rate of 65% of direct labor cost. Any underapplied or overapplied overhead costis closed to Cost of Goods Sold at the end of the month. During August, the following transactions were recorded by the company:Raw materials (all direct materials):Purchased during the month $15,000Used in production $14,000Labor:Direct labor hours worked during the month 1,300Direct labor cost incurred $25,900Indirect labor cost incurred $7,800Manufacturing overhead costs incurred (total) $19,200Inventories:Raw materials (all direct) August 31 $8,200Work in process, August 1 $9,400Work in process, August 31* $13,800*contains $5,500 of direct labor cost1)The amount of direct materials cost in the August 31 Work in Process inventory account was:2) The entry to dispose of the underapplied or overapplied overhead cost for the month would include:3) The balance on August 1 in the Raw Materials inventory account was:
The Post Division of the M.T. Woodhead Company produces basic posts which can be sold to outside customers or sold to the Lamp Division of the M.T. Woodhead Company.Last year the Lamp Division bought all of its 34,400 posts from Post at $1.44 each. The following data are available for last year's activities of the PostDivision:Capacity in units 360,000 postsSelling price per cost to outside customers $2.10Variable costs per post $1.32Fixed costs, total $187,000The total fixed costs would be the same for all the alternatives considered below. Suppose there is ample capacity so that transfers of the posts to the Lamp Divisiondo not cut into sales to outside customers. What is the lowest transfer price that would not reduce the profits of the Post Division?$2.10$1.32$1.83$1.77