All Matches
Solution Library
Expert Answer
Textbooks
Search Textbook questions, tutors and Books
Oops, something went wrong!
Change your search query and then try again
Toggle navigation
FREE Trial
S
Books
FREE
Tutors
Study Help
Expert Questions
Accounting
General Management
Mathematics
Finance
Organizational Behaviour
Law
Physics
Operating System
Management Leadership
Sociology
Programming
Marketing
Database
Computer Network
Economics
Textbooks Solutions
Accounting
Managerial Accounting
Management Leadership
Cost Accounting
Statistics
Business Law
Corporate Finance
Finance
Economics
Auditing
Ask a Question
Search
Search
Sign In
Register
study help
business
management accounting
Questions and Answers of
Management Accounting
Great Lakes Pharmaceuticals, Inc. (GLPI) produces both prescription and over-the-counter medications. In January, GLPI introduces a new prescription drug, Capestan, to relieve the pain of arthritis.
Frame It Company produces and sells picture frames. One particular frame for 8 x 10 photos was an instant success in the market, but recently competitors have come out with comparable frames. Frame
Is it more profitable to sell your product for $50 or $15? This is a difficult question for many movie studio executives. Consider a movie that cost $60 million to produce and required another $40
The Oahu Company manufactures electronic subcomponents that can be sold directly or can be processed further into “plug-in” assemblies for a variety of intricate electronic equipment. The entire
Mastercraft Inc. makes a variety of motordriven products for the home and small businesses. The market research department recently identified power lawn mowers as a potentially lucrative market. As
The Disposable Camera Division of Saari Optics Co. has the following costbehaviour patterns: Maximum production capacity is 20,000 units per year. Variable costs per units are $5 at all production
The Natural Water Company is a processor of mineral water. Sales are made principally in litre bottles to grocery stores throughout the country.The company’s income statements for the past year and
Form teams of three to six students. Each team should contact and meet with a manager responsible for pricing in a company in your area. This might be a product manager or brand manager for a large
Use differential and opportunity cost to analyze the income effects of a given alternative.
Decide whether to make or buy certain parts or products.
Decide whether a joint product should be processed beyond the split-off point.
Decide whether to rework or scrap obsolete inventory and to keep or replace old equipment.
Discuss how performance measures can affect decision making.
“Qualitative factors generally favour making over buying a component.”Do you agree? Explain.
“Evaluating performance, decision by decision, is costly. Aggregate measures, like the income statement, are frequently used.” How might the wide use of income statements affect managers’
Brandon Company produces and sells a product that has variable costs of $9 perunit and fixed costs of $110,000 per year.1. Compute the unit cost at a production and sales level of 10,000 unitsper
Lake Superior Electronics Company paid $7 million in cash four years agoto acquire a company that manufactures CD-ROMs. This company operates asa division of Lake Superior and has lost $500,000 each
A BMW executive in Germany is trying to decide whether the company should continueto manufacture an engine component or purchase it from Hanover Corporationfor 25.56 Euros (EUR) each. Demand for the
An administrator at Riverview Hospital is considering how touse some space made available when the outpatient clinic moved to a new building.She has narrowed her choices as follows:a. Use the space
Mussina Chemical Company produced threejoint products at a joint cost of $117,000. These products were processed furtherand sold as follows: CHEMICAL PRODUCT ADDITIONAL SALES PROCESSING COSTS ABC
Assume that a division of Sony, Inc. makes an electronic component for itsspeakers. Its manufacturing process for the component is a highly automatedpart of a just-in-time production system. All
Consider these data regarding Muskoka County’s photocopyingequipment:The county administrator is trying to decide whether to replace the oldequipment. Because of rapid changes in technology, she
Refer to the preceding problem (9-7).1. Suppose the “decision model” favoured by top management consistedof a comparison of a three-year accumulation of cash under each alternative.As the manager
Oliver Scott has just made the final payment onhis mortgage. He could continue to live in the home; cash expenses for repairs ©and maintenance (after any tax effects) would be $500 monthly.
Martina Bridgeman is a lawyer employed bya large law firm at $90,000per year. She is considering whether to become a sole practitioner, which wouldprobably generate annually $320,000 in operating
Sunshine State Fruit Company sells premium-quality oranges and other citrusfruits by mail-order. Protecting the fruit during shipping is important, so the companyhas designed and produces special
A petrochemical factory produces two products, L and M, as aresult of a joint process. Both products are sold to manufacturers as ingredientsfor assorted chemical products.Product L sells at
Renee Minelli, MD, is a psychiatrist who is in heavy demand. Eventhough she has raised her fees considerably during the past five years, Dr. Minellistill cannot accommodate all the patients who wish
The local book store bought more calendars than it could sell. It wasnearly June and 200 calendars remained in stock. The store paid $4.50 each forthe calendars and normally sold them for $8.95.
A department of Calcutta Textiles produces cotton fabric. All direct materials are introduced at the start of the process. Conversion costs are incurred uniformly throughout the process.In April
Refer to the preceding problem, P7-12. Using FIFO, answer the same questions.
Latham and Chris produces crushed limestone used in highway construction, among other products. To produce the crushed limestone, the company starts with limestone rocks from its quarry in Alberta
Ajax Meter Company manufactures a variety of measuring instruments.One product is an altimeter used by hikers and mountain climbers. Ajax adopted a just-in-time philosophy with an automated,
Digital Controls Inc. makes electric thermostats for homes and offices.The Westplains division makes one product, Autotherm, that has a standard cost of $37, consisting of $22 of materials and $15 of
Audio Components Ltd. recently installed a backflush costing system.One department makes speakers with a standard cost as follows:Speakers are scheduled for production only after orders are received,
The city of Castle Rock signed a lease for a photocopy machine at $2,500 per month and $0.02 per copy. Operating costs for toner, paper, operator salary, etc. are all variable at $0.03 per copy.
Kumar Milling buys oats at $0.60 per kilogram and produces Oat Flour, Oat Flakes, and Oat Bran. The process of separating the oats into oat flour and oat bran costs $0.30 per kilogram. The oat flour
The Wenatchee Company buys apples from local orchards and presses them to produce apple juice. The pulp that remains after pressing is sold to farmers as livestock food. This livestock food is
Hwang Management Consulting Company has two departments—accounting services and consulting services. For a given period, the following costs were incurred by the company as a whole: direct
Jade Soon, the administrator of General Hospital, is interested in obtaining more accurate cost allocations on the basis of cause and effect. The$180,000 of laundry costs has been allocated on the
Northern Pacific Railroad (NP) has a commuter operation that services passengers along a route between Vancouver and Whistler. Problems of cost allocation were highlighted in a news story about
The motor pool of Megalopolis provides automobiles for the use of various city departments. Currently, the motor pool has 50 autos. A recent study showed that it costs $3,600 of annual fixed cost per
The Pegasus Trucking Company has one service department and two regional operating departments. The budgeted cost behaviour pattern of the service department is $750,000 monthly in fixed costs plus
Many provinces have a hospital regulatory board that must approve the acquisition of specified medical equipment before the hospitals in the province can qualify for cost-based reimbursement related
Reliable Machining Products (RMP) is an automotive component supplier. RMP has been approached by Chrysler with a proposal to significantly increase production of Part T151A to a total annual
A chemical company has a batch process that takes 1,000 litres of a raw material and transforms it into 80 kilograms of X-1 and 400 kilograms of X-2.Although the joint costs of their production are
The Maori Novelty company makes a variety of souvenirs for visitors to New Zealand. The Otago division manufactures stuffed kiwi birds using a highly automated operation. A recently installed
Genesis Athletic Shoes had an ending inventory of direct materials of$9 million. During the year the company had acquired $15 million of additional direct materials and had used $12 million. Compute
East University uses job-cost records for various research projects. A major reason for such records is to justify requests for reimbursement for costs on projects sponsored by the federal
DeMond Chemicals has the following balances at December 31, 2006.All amounts are in millions:The cost of goods completed was $420 (in millions). The cost of direct materials requisitioned for
The Chickadee Company has the following balances (in millions) as of December 31, 2007:The cost of direct materials purchased during 2007 was $305. The cost of direct materials requisitioned for
MacLachlan Mfg. Co. had overapplied overhead of $20,000 in 2007. Before adjusting for overapplied or underapplied overhead, the ending inventories for direct materials, WIP, and finished goods were
The following summarized data are available on three job-cost records of Weeks Company, a manufacturer of packaging equipment:The company’s fiscal year ends on May 31. Factory overhead is applied
Refer to Exhibits 4-4 and 4-5. Suppose manufacturing costs were the same, but there was an ending work-in-process inventory of$3 million. The cost of the completed goods would therefore be $37
Ithalid Company began business on January 1, 2006, with assets of $150,000 cash and equity of$150,000 capital shares. In 2006 it manufactured some inventory at a cost of$60,000, including $12,000 for
Blackstone Tools produced 12,000 electric drills during 2006, although expected production was only 10,500 drills. The company’s fixed overhead rate is $7 per drill. Absorption-costing operating
Simple numbers are used in this problem to highlight the concepts covered in the chapter.Assume that the Canberra Company produces one product—a bath mat—that sells for $10. Canberra uses a
The Carley Company differs from the Marple Company (described in Problem 4-21) in only one respect: it has both variable and fixed manufacturing costs. Its variable costs are $0.14 per litre and its
The Trapani Company had the following actual data for 2006 and 2007:The basic production data at standard unit costs for the two years wereFixed factory overhead was budgeted at $98,000 per year. The
Direct labour is often accounted for at the gross wage rate, and the related “benefit costs” such as employer payroll taxes and employer contributions to health care plans are accounted for as
Two years ago, a ship owned by a foreign company ran aground during a severe storm and sank at the entrance of a Canadian harbour. The vessel blocked the entrance to the harbour and spilled
Form groups of four persons each. Each person should select one of the following four roles (if groups have between four and eight persons, two persons can play any of the roles in the
The Metropolitan City Hospital is unionized. In 2006, nurses received an average annual salary of $45,000. The hospital administrator is considering how the contract with nurses should be changed for
La Brasserie, a French restaurant in Moncton, New Brunswick, prepared a simplified version of its income statement as follows:The average dinner tab at La Brasserie is $40, and the average lunch tab
According to an article in Business Week, T.J. Izzo had a great idea after a bad back almost forced him to give up golf. His problem was carrying a golf bag, not swinging a club. So he designed a
Given the following cost behaviours and expected levels of cost driveractivity, predict total costs: 51. Fuel costs of driving vehicles, $0.20 per kilometre driven; at 15,000kilometres per month.2.
Identify the following planned costs as (a) purely variable costs,(b) discretionary fixed costs, (c) committed fixed costs, (d) mixed costs, or (e) step costs. For purely variable costs and mixed
The Lakehead Race Track, in Thunder Bay, Ontario, is a horse-racing track. Its revenue is derived mainly from attendance and a fixed percentage of the betting. Its expenses for a 90-day season areThe
Cola Food Services operates and services soft-drink vending machines located in restaurants, gas stations, factories, etc. The machines are rented from the manufacturer. In addition, Cola must rent
A social welfare agency has a government budget appropriation for 2006 of $900,000. The agency’s major mission is to help disabled persons who are unable to hold jobs. On the average, the agency
An Ontario law permits a game of chance called bingo when it is offered by specific not-for-profit institutions, including churches. Reverend Matthew Pappas, the priest of a new parish in suburban
Form groups of four to six persons. Each group should identify a cost accountant at a local company to interview. The interviewee could be the top financial officer of a small company, but a division
Give three examples of not-for-profit organizations where processcosting systems are probably used.
Present an equation that describes the physical flow in process costing, where there are beginning inventories in work-in-process.
Explain the basic ideas underlying process costing and how those ideas differ from job costing.
Compute output in terms of equivalent units.
Compute costs and prepare a production cost report for the process-costing system.
Demonstrate the computations of unit costs under the weighted-average method.
Demonstrate the computation of unit costs under the first-in, first-out method.
Use backflush costing with a just-in-time production system.
Generate costs using an operation-costing system.
One department of Wamego Technology Company manufactures basic handheld calculators. Various materials are added at different stages of the process.The outer front sheet and the carrying case, which
Celltel Ltd. produces cellular phones in large quantities. For simplicity, assume that the company has two departments, Assembly and Testing.The manufacturing costs in the Assembly Department during
Hasoon Company produces digital watches in large quantities. The manufacturing costs of the Assembly Department wereFor simplicity, assume that this is a two-department company—Assembly and
Fill in the unknowns in physical or equivalent units: EQUIVALENT UNITS PHYSICAL DIRECT CONVERSION FLOW OF PRODUCTION Beginning work-in-process Started UNITS MATERIALS COSTS 1,000 (50%) ? To account
The production department of Garcia Paints Inc. had the following flow of litres of latex paint for the month of April:Direct materials are added at the beginning of the process. Units of
Consider the following data for 2007:The beginning inventory was 80 percent complete regarding direct materials and 40 percent complete regarding conversion costs. The ending inventory was 20 percent
The Fujita Company uses the FIFO process-cost method. Consider the following for July:• Beginning inventory, 15,000 units, 70 percent completed regarding direct materials, which cost
Given the following information, compute the unit conversion cost for the month of February for the Michael-Michael Company, using the FIFO process-cost method. Show details of your
The Rainbow Paint Co. uses a processcost system. Materials are added at the beginning of a particular process, and conversion costs are incurred uniformly. Work-in-process at the beginning of the
The Magnatto Company manufactures electric drills. Material is introduced at the beginning of the process in the assembly department. Conversion costs are applied uniformly throughout the process.As
Canada Revenue Agency (CRA) must process millions of income tax returns yearly. When the taxpayer sends in a return, documents such as withholding statements and cheques are matched against the data.
Consider the potato chip production process at a company such as Frito-Lay. Frito-Lay uses a continuous-flow technology that is suited for high volumes of product. At the Plano, Texas, facility,
The following data pertain to the Blending Department at Fasten Chemicals for April: The plastic compound is introduced at the start of the process, while the softening compound is added when the
A Hull, England, company manufactures and sells small portable tape recorders. Business is booming. Various materials are added at various stages in the Assembly Department. Costs are accounted for
Study the Appendix to this chapter (page 320). Oak Furniture Co. manufactures a variety of wooden chairs. The company’s manufacturing operations and costs applied to products for June wereThree
Study the Appendix to this chapter.Sonor Instruments Co. uses three operations in sequence to make two models of its depth finders for sport fishing. Consider the following:1. Operation 2 is highly
Outdoor Equipment Company (OEC) and Mountain Supplies Inc. (MSI) sell tents. OEC purchases its tents from a manufacturer for $90 each and sells them for $120. It purchased 10,000 tents in 2006.MSI
Identify the AIS design problems in the following abbreviated cases, and suggest ways for improvements:(a) You have discovered by on-site inspection that a manager is consistently mis-recording the
In broad outline, suggest the main features of an AIS designed to be appropriate for:(a) a production process whose output is standard steel rods made far stock;(b) a division producing
Showing 200 - 300
of 1524
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Last