The Peace Department of Shalom Company uses 5,000 kilograms per month in its production of Peace products. It presently buys all the kilograms of materials it needs from outside supplier at a cost of P100. The Piss Division of Shalom Company manufactures the exact type of material that the Peace Department requires. The Piss Division is operating at its capacity of 15,000 units per month and sells all its output to a local manufacturer at P108 per unit. The following cost data are available for its 15,000 units: Variable production costs All fixed costs 70 10 If Piss Division has excess capacity and can accommodate all Peace's requests, will Piss accept Peace's offer at P75? Yes or no? Use the underlined words as your choice. Input answers in capital letters.
Q: 35 The City of Sandwich purchased a swimming pool from a private operator as of April 1, 2020, for…
A: Based on the transactions provided, the following journal entries would be made: 1.To record the…
Q: Y Wholesale Company began the year with merchandise inventory of $13.000. During the year. Y…
A: Cost of goods sold (COGS) is an accounting measure that represents the direct costs of producing or…
Q: How to calculate the total outstanding receivables?
A: To calculate the total outstanding receivables, you can follow the following steps: Determine the…
Q: The auditor is typically concerned with two major types of mistakes that materially impact the…
A: Option A) Risk of Assessing Control Risk Too Low/Risk of Incorrect Rejection is incorrect because…
Q: Common shares (no-par value; authorized 60,000 shares; outstanding 21,000 shares) Contributed…
A: The smaller stock dividend are declared on the basis of market value of shares on declaration date.…
Q: Paulson's specializes in sound equipment. Company records indicate the following data for a line of…
A: Inventory valuation means the process of assigning a monetary value to the inventory of a business.…
Q: Sporting Pro wants to prepare interim financial statements for the first quarter of 2023 but would…
A: Gross profit: The difference between the sales and the cost of goods sold is called gross profit.…
Q: Make the year-end entry to record uncollectible-account expense. (Record debits first, then credits.…
A: Given in the question: Accounts Receivable balance on December 31, 2021 = $91,000 Allowance for…
Q: The CVP income statements of Shalom and Peace Company are available below. The two companies belong…
A: The degree of operating leverage is calculated as the contribution margin divided by the operating…
Q: Henna Company produces and sells two products, Carvings and Mementos. It manufactures these products…
A: Contribution margin income statement is the one which is prepared by the entity for the purpose of…
Q: Information concerning Johnston Company's direct materials costs is as follows: Standard price…
A: Direct material is the cost incurred on the making of the goods. It is a prime cost for the entity.…
Q: At April 30, partners' capital balances in Crane Company are G. Donley $54,080, C. Lamar $49,920,…
A: Journal Entry is the primary step to record the transaction in the books of accounts. The total of…
Q: Life Force Fitness, Inc., assembles and sells treadmills. Activity-based product information for…
A: Activity based costing is a technique which is used for allocating the overhead rates to the…
Q: Exercise 20-17 (Algo) Preparation of cash budgets (for three periods) LO P2 Kayak Company budgeted…
A: The cash budget is prepared to record the cash transactions as cash receipts and cash payments for…
Q: The Toy Emporium Inc. has compiled the following information for the year ended December 31, 2015.…
A: As per international financial reporting standards inventory to be valued at item at item by item…
Q: The auditor attempts to correct for the risk of under-auditing (ineffectiveness) and over-auditing…
A: Auditing is the process of examining financial statements, records, and other financial information…
Q: Lucky Company's direct labor information for the month of February is as follows: Actual direct…
A: Direct labor rate variance is the difference between the labor cost estimated and the cost actually…
Q: Fountain Garden Supplies uses a traditional costing system for allocating manufacturing overhead…
A: Predetermined overhead rate is the one which is determined based on estimated values at the…
Q: The following budget data pertain to the Machining Department of Grind Company: Maximum capacity…
A: Fixed overheads are costs that remain constant every month and do not change with changes in…
Q: Toil & Oil processes crude oil to jointly produce gasoline, diesel, and kerosene. One batch produces…
A: Joint Cost :— It is the total cost incurred jointly in the manufacturing of two or more joint…
Q: Please explain well step by step because i have to do it in excel This production data was recorded…
A: The high-low method is a simple technique that is used to separate mixed costs into their fixed and…
Q: Supposing that the old partnership of A & B reported the following: Partners Capital…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: Sanjeev enters into a contract offering variable consideration. The contract pays him $3,600/month…
A: Revenue is the income that a company earns from its business activities, such as the sale of goods…
Q: Shalom Company sold 20,000 units for P100 per unit. The variable cost per unit is P70 and the total…
A: A high margin of safety provides a company with financial stability, flexibility, and competitive…
Q: 1. Express the balance sheets in common-size percents. 2. Assuming annual sales have not changed in…
A: A common-size balance sheet is a statement in which an analysis of elements of the balance sheet…
Q: Mower-Blower Sales Co. started business on January 20, 2019. Products sold were snow blowers and…
A: Lets understand the basics. There are various method through which ending inventory and cost of…
Q: Ch 6 During Heaton Company's first two years of operations, it reported absorption costing net…
A: ABSORPTION COSTING Absorption Costing is a Cost managerial Accounting method in which All Cost…
Q: A company paid $20,000,000 for land and building in a single purchase transaction. The land had been…
A: Lets understand the basics. When land and building is purchased for a lumsump single consideration…
Q: Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of…
A: Allowance for Doubtful Accounts - Allowance is method of making provision for uncollectible…
Q: J has net income or les of $9: and average total assets of $4
A: margin = net income / sales*100 margin= $81,700/$950,000*100 =8.6%
Q: Required 1: Assuming no other transaction happened, the amount of gross Sales Revenue in year 2 is:…
A: FIFO stands for "first-in, first-out," and it is an inventory accounting method that assumes that…
Q: Company plans to produce 50,000 units of Peace Products in 2023. Budgeted variable manufacturing…
A: The cost that are directly related to manufacturing are direct material , direct labor and direct…
Q: A company's master budget for October is to manufacture and sell 30,900 units, for a total sales…
A: Flexible budget is the one which includes the estimate of future revenues and expenses. It includes…
Q: The following information pertains to Hopson Co.'s pension plan: Actuarial estimate of projected…
A: Corridor amortization is a term used when the organization's unrealized net gain or net loss exceeds…
Q: Support Department Cost Allocation-Direct Method Christmas Timber, Inc., produces Christmas trees.…
A: Answer:- Total cost:- Total cost is a cost that includes overhead costs, variable costs and fixed…
Q: A company has two products A and B. it uses activity-based costing and has prepared the following…
A: Overhead costs are those that are not directly related to the production of goods or services, but…
Q: Scot Brothers reports the following transactions for June, 2020: June 1 Purchased a two-year…
A: Under the cash basis of accounting, revenue and expenses are recognized when cash is received or…
Q: Shalom Company has provided the following data concerning its costs:…
A: Spending variance :— It is the difference between actual results and flexible budget. Activity…
Q: At the end of the first quarter of 202X, you are asked to determine the FUTA tax liability for…
A: Payroll taxes are defined as the amounts collected by the government or revenue collection authority…
Q: The following information pertains to Beige, Inc., for the current year: Sales Internal failure…
A: Note : The following are comprised in a Quality cost: •Appraisal cost are incurred to detect the…
Q: Chandler and Cas
A: Some dividends and capital gains are taxed @ 0% as per IRS rules if the income limit for…
Q: The capital balances of the partners are presented to you before the retirement of Y: X, P40,000; Y,…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: Undew Inc.'s inventory records showed the following data for an item it sells regularly. Date Jan. 1…
A: FIFO stands for “First-In, First-Out” and is used for cost flow assumption purposes. Cost flow…
Q: Product A comes with a two year warranty when purchased by customers. The estimated warranty costs…
A: Warranty expense is an expense related to the repair, replacement, or compensation to a user for any…
Q: JPL, Incorporated has provided its sales and expense data for the most recent period. The Controller…
A: Variable costs are costs that varies with the change in the level of output. Fixed costs are costs…
Q: What do the Financial Statements of a business include?
A: INTRODUCTION: Every business handles a variety of daily business operations. The financial…
Q: Required information [The following information applies to the questions displayed below.] On…
A: In an accounting system, a transaction is recorded as a journal entry. It is the first step in the…
Q: Minden Company is a wholesale distributor of premium European chocolates. The company’s balance…
A: In this question, we need to : Calculate the expected cash collections from customers for May.…
Q: you did not complete all the part
A: Current ratio and acid test ratio uses the current liabilities as the base and this is the common…
Q: Carving Creations jointly produces wood chips and sawdust used in agriculture. The wood chips and…
A: A joint cost is a cost that benefits many products and for which the contribution to each cannot be…
Step by step
Solved in 2 steps
- Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin is $25 per unit and $40 s used in direct labor, while the direct material for the double is $40 per unit, and the labor cost is $50 per unit. Box Springs estimates it will make 5,000 twins and 9,000 doubles in the next year. It estimates the overhead for each cost pool and cost driver activities as follows: How much does each unit cost to manufacture?Carltons Kitchens makes two types of pasta makers: Strands and Shapes. The company expects to manufacture 70,000 units of Strands, which has a per-unit direct material cost of $10 and a per-unit direct labor cost of $60. It also expects to manufacture 30.000 units of Shapes, which has a per-unit material cost of $15 and a per-unit direct labor cost of $40. It is estimated that Strands will use 140,000 machine hours and Shapes will require 60,000 machine hours. Historically, the company has used the traditional allocation method and applied overhead at a rate of $21 per machine hour. It was determined that there were three cost pools, and the overhead for each cost pool is shown: The cost driver for each cost pool and its expected activity is shown: A. What is the per-unit cost for each product under the traditional allocation method? B. What is the per-unit cost for each product under ABC costing?Bobcat uses a traditional cost system and estimates next years overhead will be $800.000, as driven by the estimated 25,000 direct labor hours. It manufactures three products and estimates the following costs: If the labor rate is $30 per hour, what is the per-unit cost of each product?
- Vollmer Manufacturing makes three components for sale to refrigeration companies. The components are processed on two machines: a shaper and a grinder. The times (in minutes) required on each machine are as follows: The shaper is available for 120 hours, and the grinder for 110 hours. No more than 200 units of component 3 can be sold, but up to 1,000 units of each of the other components can be sold. In fact, the company already has orders for 600 units of component 1 that must be satisfied. The profit contributions for components 1, 2, and 3 are 8, 6, and 9, respectively. a. Formulate and solve for the recommended production quantities. b. What are the objective coefficient ranges for the three components? Interpret these ranges for company management. c. What are the right-hand-side ranges? Interpret these ranges for company management. d. If more time could be made available on the grinder, how much would it be worth? e. If more units of component 3 can be sold by reducing the sales price by 4, should the company reduce the price?Patz Company produces two types of machine parts: Part A and Part B, with unit contribution margins of 300 and 600, respectively. Assume initially that Patz can sell all that is produced of either component. Part A requires two hours of assembly, and B requires five hours of assembly. The firm has 300 assembly hours per week. Required: 1. Express the objective of maximizing the total contribution margin subject to the assembly-hour constraint. 2. Identify the optimal amount that should be produced of each machine part and the total contribution margin associated with this mix. 3. What if market conditions are such that Patz can sell at most 75 units of Part A and 60 units of Part B? Express the objective function with its associated constraints for this case and identify the optimal mix and its associated total contribution margin.Power Corp. makes 2 products: blades for table saws and blades for handsaws. Each product passes through the sharpening machine area, which is the chief constraint during production. Handsaw blades take 15 minutes on the sharpening machine and have a contribution margin per blade of $15. Table saw blades take 20 minutes on the sharpening machine and have a contribution margin per blade of $35. If it is assumed that Power Corp. has 5,000 hours available on the sharpening machine to service a minimum demand for each product of 4,000 units, how much will profits increase if 200 more hours of machine time can be obtained?
- Power Corp. makes 2 products: blades for table saws and blades for handsaws. Each product passes through the sharpening machine area, which is the chief constraint during production. Handsaw blades take 15 minutes on the sharpening machine and have a contribution margin per blade of $15. Table saw blades take 20 minutes on the sharpening machine and have a contribution margin per blade of $35. If it is assumed that Power Corp. has 5,000 hours available on the sharpening machine to service a minimum demand for each product of 4,000 units, how many of each product should be made?Andalus Furniture Company has two manufacturing plants, one at Aynor and another at Spartanburg. The cost in dollars of producing a kitchen chair at each of the two plants is given here. The cost of producing Q1 chairs at Aynor is: 75Q1+5Q12+100 and the cost of producing Q2 kitchen chairs at Spartanburg is: 25Q2+2.5Q22+150. Andalus needs to manufacture a total of 40 kitchen chairs to meet an order just received. How many chairs should be made at Aynor, and how many should be made at Spartanburg in order to minimize total production cost?Brees, Inc., a manufacturer of golf carts, has just received an offer from a supplier to provide 2,600 units of a component used in its main product. The component is a track assembly that is currently produced internally. The supplier has offered to sell the track assembly for 66 per unit. Brees is currently using a traditional, unit-based costing system that assigns overhead to jobs on the basis of direct labor hours. The estimated traditional full cost of producing the track assembly is as follows: Prior to making a decision, the companys CEO commissioned a special study to see whether there would be any decrease in the fixed overhead costs. The results of the study revealed the following: 3 setups1,160 each (The setups would be avoided, and total spending could be reduced by 1,160 per setup.) One half-time inspector is needed. The company already uses part-time inspectors hired through a temporary employment agency. The yearly cost of the part-time inspectors for the track assembly operation is 12,300 and could be totally avoided if the part were purchased. Engineering work: 470 hours, 45/hour. (Although the work decreases by 470 hours, the engineer assigned to the track assembly line also spends time on other products, and there would be no reduction in his salary.) 75 fewer material moves at 30 per move. Required: 1. Ignore the special study, and determine whether the track assembly should be produced internally or purchased from the supplier. 2. Now, using the special study data, repeat the analysis. 3. Discuss the qualitative factors that would affect the decision, including strategic implications. 4. After reviewing the special study, the controller made the following remark: This study ignores the additional activity demands that purchasing would cause. For example, although the demand for inspecting the part on the production floor decreases, we may need to inspect the incoming parts in the receiving area. Will we actually save any inspection costs? Is the controller right?
- Remarkable Enterprises requires four units of part A for every unit of Al that it produces. Currently, part A is made by Remarkable, with these per-unit costs in a month when 4,000 units were produced: Variable manufacturing overhead is applied at $1.60 per unit. The other $0.50 of overhead consists of allocated fixed costs. Remarkable will need 8,000 units of part A for the next years production. Altoona Corporation has offered to supply 8,000 units of part A at a price of $8.00 per unit. If Remarkable accepts the offer, all of the variable costs and $2,000 of the fixed costs will be avoided. Should Remarkable accept the offer from Altoona Corporation?Gent Designs requires three units of part A for every unit of Al that it produces. Currently, part A is made by Gent, with these per-unit costs in a month when 4.000 units were produced: Variable manufacturing overhead is applied at $1.00 per unit. The other $0.30 of overhead consists of allocated fixed costs. Gent will need 6,000 units of part A for the next years production. Cory Corporation has offered to supply 6,000 units of part A at a price of $7.00 per unit. It Gent accepts the offer, all of the variable costs and $1,200 of the fixed costs will be avoided. Should Gent Designs accept the offer from Cory Corporation?Roper Furniture manufactures office furniture and tracks cost data across their process. The following are some of the costs that they incur. Classify these costs as fixed or variable costs, and as product costs or period costs. Wood used to produce desks ($125,00 per desk) Production labor used to produce desks ($15 per hour) Production supervisor salary ($45,000 per year) Depreciation on factory equipment ($60,000 per year) Selling and administrative expenses ($45,000 per year) Rent on corporate office ($44,000 per year) Nails, glue, and other materials required to produce desks (varies per desk) Utilities expenses for production facility Sales staff commission (5% of gross sales)