a. Using differential analysis, what is the impact on profits of accepting this special order? Short-term impact on profits from the special order: $ 5,325 X b. Should management consider nonquantitative issues before making a final decision? Yes c. How would the analysis change if the special order were for 3,000 bags per month for the next five years? (Assume there would be no loss of regular sales and consider only quantitative factors.) Monthly long-term impact on profits from the special order: $ 13,550 X
Q: Record the appropriate journal entry to reflect the following: The investments that…
A: The investment account is being updated to reflect the current share price of the firm. Since the…
Q: Oriole Company's actual results reveal that it was profitable in the sale of its star product: a…
A: Variable-MOH price variance=Standard rate×Actual quantity-Actual variable MOH Fixed-MOH price…
Q: Mitch and Bill are both age 75. When Mitch was 22 years old, he began depositing $1300 per year…
A: The concept of time value of money will be used and applied here. The $1300 annual deposits made by…
Q: Cisco Systems is purchasing a new bar code-scanning device for its service center in San Francisco.…
A: Depreciation is defined as the accounting method implemented to allocate the cost of a long-term…
Q: The ending balance of a QuickBooks 'Chequing' register:
A: QuickBooks is widely used by small and medium-sized businesses to manage their finances, including…
Q: The “Lands” used for commercial purposes owned by Non stock and nonprofit hospital shall a. Exempt…
A: In some jurisdictions, non-profit hospitals may be exempt from paying property taxes on their…
Q: Cullumber Furniture Co. consists of two divisions, Bedroom Division and Dining Room Division. The…
A: Contribution margin is the difference between the sales and variable expense. Contribution margin…
Q: Vaughn Company recorded the following operating data: Sales Contribution margin Total direct fixed…
A: ROI is return on investment. It is percentage return earned by the entity on the investment made. It…
Q: Wilco Inc. uses the percentage of completion method to recognize revenues. In 2022. Wilco enters…
A: A construction contract is a long-term contract because these contract generally takes more than a…
Q: You are a financial adviser working with a client who wants to retire in eight years. The client has…
A: Present Value is a capital budgeting technique which helps in decision making on the basis of future…
Q: Using declining-balance depreciation with d = 27 percent, what is the book value after 5 years for…
A: A approach known as the diminishing balance method Depreciation is a process that may also be…
Q: What does the chart of accounts include? 2. Are both software packages the same? 3. What are the…
A: The chart of accounts is a systematic list of all the accounts used by a company to record financial…
Q: On September 30, 2021, Athens Software began developing a software program to shield personal…
A: The expenditures that an organisation must bear in order to conduct research, cultivate, and bring a…
Q: Millicom is acquiring Vikonic's outstanding common stock for $15 million. Financial information (in…
A: When the purchase method is used, the acquiring company records the acquired company's assets and…
Q: Sheffield Corp. lends Riverbed industries $54000 on August 1, 2022, accepting a 9-month, 15%…
A: Note payable: Note payable is an instrument through which the borrower obtains money from the…
Q: Nicole's Getaway Spa (NGS) purchased a hydrotherapy tub system to add to the wellness programs at…
A: Depreciation is the amount of expense charged on the non-current assets of the entity. It is…
Q: Annin Laboratories uses the weighted-average method to account for its work-in-process inventories.…
A: The equivalent units are calculated on the basis of the percentage of the work completed during the…
Q: Mack Precision Tool and Die has two production departments, Fabricating and Finishing, and two…
A: Using step method, the cost from one service department is allocated to other department first.…
Q: 6. The following information is from Sears financial. Month Jan Feb Mar Apr May Jun Prepare the…
A: As per the given information:…
Q: Crane Industries operates as a decentralized, vertically integrated, multidivisional company. One of…
A: Transfer pricing is a practice in which companies set prices for goods or services sold between…
Q: Asbury Coffee Enterprises (ACE) manufactures two models of coffee grinders: Personal and Commercial.…
A: Cost accounting is one of the important branch of accounting being used in business. Under this,…
Q: Keep-or-Drop Decision Charlevoix Company produces three products: Torch, Elk, and Walloon. A…
A: Variable costs are costs that varies with the change in the level of output. Fixed costs are costs…
Q: For the credit card account, assume one month between billing dates (with the appropriate number of…
A: According to given information the last month balance = $485.26 And the billing date is January…
Q: Prepare a statement of cash flows for 2022 using the indirect method. (Show amounts t -15,000 or in…
A: Please find the Statement of Cash Flows of Swifty Corporation in Step 3 below.
Q: net income for 2020 was $1.5 million and 6% cumulative preferred shares outstanding on 31 december…
A: As the name suggests, Earning per share is calculated by dividing net income by number of…
Q: Regular Company produces audio equipment, specifically headphones and speakers. A new CEO has just…
A: Manufacturing overhead is the indirect costs that are incurred during the manufacturing process,…
Q: Required Information [The following information applies to the questions displayed below.] On…
A: The treasury stock decreases the number of shares outstanding. The treasury stock has debit balance…
Q: Kayak Company budgeted the following cash receipts (excluding cash receipts from loans received) and…
A: A cash budget is an estimate of a corporation's cash flows for a given time span. A cash budget is…
Q: Crazy Mountain Outfitters Co., an outfitter store for fishing treks, prepared the following…
A: Adjusting entries are those form of journal entries which are passed at the end of accounting…
Q: On January 1, 2025, Cullumber Company purchased 5% bonds, having a maturity value of $540,000 for…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: RSTN Company produces its product in two sequential processing departments. During October, the…
A: The equivalent units are calculated on the basis of the percentage of the work completed during the…
Q: Swan Company has a direct labor standard of 34 hours per unit of output. Each employee has a…
A: In accounting we do variance analysis which involves comparing the actual results with the planned…
Q: Please explain these Scottish Australian Mining cases under Taxation? Theory question please…
A: The Scottish Australian Mining cases refer to a series of legal cases that occurred in Australia in…
Q: HandMI Corp. manufactures organic cotton totes in Michigan. The company estimates its production for…
A: The production budget provides information on the total units to be manufactured. It considers the…
Q: Journalize the following transactions for Stillwater Spa Consultants: Oct. 1 Sold services for…
A: Recording of journal entries is first step in accounting cycle process, under which atleast one…
Q: Exercise 11-31 (Algo) Cost Allocation: Reciprocal Method, Two Service Departments (LO 11-1) Activity…
A: The service department cost can be allocated to production departments using various methods as…
Q: Sharon Lee Corporation has pretax financial income (or loss) from 2020 through 2026 as follows. 2020…
A: Answer:- Journal entry meaning:- In the company's books, a journal entry serves as a record of a…
Q: Harold Corporation manufactures and sells a single product. The company uses units as the measure of…
A: The variance is the difference between the actual and standard cost of production. The spending…
Q: Madrid Company has a direct labor standard of 4 hours per unit of output, and a standard wage rate…
A: The variance is the difference between the actual and standard cost of production. The labor rate…
Q: e 5 seperate scenarios by th
A: As per the guideline, I can solve 3 questions at a time kindly post other questions separately.
Q: SW Company provides the Equity & Liability $373,500 in 2022. Equity and Liabilities. Share…
A: . A higher ROE is generally considered more favorable because it indicates that a company is using…
Q: At year-end, a trial balance showed total credits exceeding total debits by $6,200. This difference…
A: Once all the transactions recorded are posted to ledger account, trial balance is prepared with the…
Q: The partnership of Arun and Margot shares profits and losses in a 2:1 ratio, and the partners have…
A: Partnership is a form of business in which the firm is owned by two or more persons. They contribute…
Q: Complete the following table by filling in missing amounts. (Use 360 days a year.) Principal of Note…
A: The promissory notes are the legal document issued by the drawer who promises to pay the mentioned…
Q: Textbook LO 15.2 On May 1, 2022, Dale and Ciara formed a partnership. Each contributed assets as…
A: The accounts receivables contributed are to be recorded at their net realizable value. The non-cash…
Q: xed costs d fixed costs 26,600 11,400 $34,200 36,100 19,000 $(9,500) 22,800 7,600 $15,200 85,500…
A: Bud (6384) Er (3800) Total Revenue $148,960 $76,000 $224,960 Less : Variable cost…
Q: Required: Show the effect (if any) of each of the above transactions on each financial statement…
A: Shareholders' equity, often referred to as stockholders' equity, is the remaining claim on a…
Q: Required Information [The following information applies to the questions displayed below] Homestead…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: Sherwin Chemicals produces commercial strength cleansing supplies. Two of its main products are…
A: Standard price is the estimated price per unit of material. It is estimated to determine the…
Q: 1. Given the information provided by the financial statements, what would you tell Abrahams? (As…
A: Based on the information provided by the financial statements, there are a few things to consider…
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
- Full Belly Farm grows organic vegetables and sells them to distributors and local restaurants after processing. Assume the farm’s leading product for restaurant customers is a mixture of organic green salad ingredients prepared and ready to serve. The company sells a large bag to restaurants for $30. It calculates the variable cost per bag at $20 (including $1 for local delivery), and the average total cost per bag is $24. Growing conditions have been very good this season and Full Belly has extra capacity. A representative of a restaurant association in another city has offered to buy fresh salad stock from the company to augment its regular supply during an upcoming international festival. The restaurant association wants to buy 3,600 bags during the next month for $22 per bag. Delivery to restaurants in the other city will cost the company $0.75 per bag. It can meet most of the order with excess capacity but would sacrifice 240 bags of regular sales to fill this special order.…pecial OrderFull Belly Farm grows organic vegetables and sells them to distributors and local restaurants after processing. Assume the farm’s leading product for restaurant customers is a mixture of organic green salad ingredients prepared and ready to serve. The company sells a large bag to restaurants for $30. It calculates the variable cost per bag at $20 (including $1 for local delivery), and the average total cost per bag is $24. Growing conditions have been very good this season and Full Belly has extra capacity.A representative of a restaurant association in another city has offered to buy fresh salad stock from the company to augment its regular supply during an upcoming international festival. The restaurant association wants to buy 3,600 bags during the next month for $22 per bag. Delivery to restaurants in the other city will cost the company $0.75 per bag. It can meet most of the order with excess capacity but would sacrifice 240 bags of regular sales to fill this special…Great Oaks Farm grows organic vegetables and sells them to local restaurants after processing. The farms leading produce is Salad in a bag, which is mixed of organic salad green ingredients prepared ready to serve. The company sells a large bag to restaurants for $25. It calculates the variable cost per bag at $19, including $1. For delivery, and the average total cost per bag is $22. Because the vegetables are perishable and Great Oaks Farm is experiencing a large crop, the farm has extra capacity. Another company offers to purchase 2500 bags during the next month at $21 per bag. Delivery to the company cost $0.75 per bag. It can meet most of the request but would sacrifice 400 bags of regular sales to fill the special order. a. using differential analysi, what is the impact on profits of accepting this special order? b. What nonquantitative issues should management consider before making a final decision? c. How would the analysis change if the special order were for…
- The Deer Valley Farm produces a natural organic fertil-izer, which it sells mostly to gardeners and homeowners. The annual demand for fertilizer is 220,000 pounds. Thefarm is able to produce 305,000 pounds annually. Thecost to transport the fertilizer from the plant to the farmis $620 per load. The annual carrying cost is $0.12 perpound.a. Compute the optimal order size, the maximum inventorylevel, and the total minimum cost.b. If the farm can increase production capacity to 360,000pounds per year, will it reduce total inventory cost?Swagger Corporation purchases potatoes from farmers. The potatoes are then peeled, producing two intermediate products-peels and depeeled spuds. The peels can then be processed further to make a cocktail of organic nutrients. And the depeeled spuds can be processed further to make frozen french fries. A batch of potatoes costs $44 to buy from farmers and $12 to peel in the company's plant. The peels produced from a batch can be sold as is for animal feed for $26 or processed further for $17 to make the cocktail of nutrients that are sold for $46. The depeeled spuds can be sold as is for $37 or processed further for $26 to make frozen french fries that are sold for $58. Required: a. Assuming that no other costs are involved in processing potatoes or in selling products, how much money does the company make from processing one batch of potatoes into the cocktail of organic nutrients and frozen french fries? b. Should each of the intermediate products, peels and depeeled spuds, be sold as…Swagger Corporation purchases potatoes from farmers. The potatoes are then peeled, producing two intermediate products-peels and depeeled spuds. The peels can then be processed further to make a cocktail of organic nutrients. And the depeeled spuds can be processed further to make frozen french fries. A batch of potatoes costs $45 to buy from farmers and $13 to peel in the company's plant. The peels produced from a batch can be sold as is for animal feed for $27 or processed further for $18 to make the cocktail of nutrients that are sold for $47. The depeeled spuds can be sold as is for $38 or processed further for $27 to make frozen french fries that are sold for $59. Required: a. Assuming that no other costs are involved in processing potatoes or in selling products, how much money does the company make from processing one batch of potatoes into the cocktail of organic nutrients and frozen french fries? b. Should each of the intermediate products, peels and depeeled spuds, be sold as…
- Citrus Girl Company (CGC) purchases quality citrus produce from local growers and sells the produce via the Internet across the United States. To keep costs down, CGC maintains a warehouse but no showroom or retail sales outlets. CGC has the following information for the second quarter of the year: Expected monthly sales for April, May, June, and July are $160,000, $ 130,000, $250,000, and $70,000, respectively. Cost of goods sold is 50 percent of expected sales. CGC's desired ending inventory is 60 percent of the following month's cost of goods sold. Monthly operating expenses are estimated to be: Salaries: $35,000. Delivery expense: 5 percent of monthly sales. Rent expense on the warehouse: $3,500. Utilities: $700. Insurance: $360. Other expenses: $460. Required: Compute the budgeted cost of purchases for each month in the second quarter. Complete the budgeted income statement for each month in the second quarter.Swagger Corporation purchases potatoes from farmers. The potatoes are then peeled, producing two intermediate products-peels and depeeled spuds. The peels can then be processed further to make a cocktail of organic nutrients. And the depeeled spuds can be processed further to make frozen french fries. A batch of potatoes costs $44 to buy from farmers and $12 to peel in the company's plant. The peels produced from a batch can be sold as is for animal feed for $26 or processed further for $17 to make the cocktail of nutrients that are sold for $46. The depeeled spuds can be sold as is for $37 or processed further for $26 to make frozen french fries that are sold for $58. Required: a. Assuming that no other costs are involved in processing potatoes or in selling products, how much money does the company make from processing one batch of potatoes into the cocktail of organic nutrients and frozen french fries? b. Should each of the intermediate products, peels and depeeled spuds, be sold…Organicplus processes organic milk into plain yogurt. Organicplus sells plain yogurt to hospitals, nursing homes, and restaurants in bulk, one-gallon containers. Each batch, processed at a cost of $870, yields 645 gallons of plain yogurt. The company sells the one-gallon tubs for $6.00 each and spends $0.12 for each plastic tub. Organicplus has recently begun to reconsider its strategy. Management wonders if it would be more profitable to sell individual-sized portions of fruited organic yogurt at local food stores. Organicplus could further process each batch of plain yogurt into 13,760 individual portions (3/4 cup each) of fruited yogurt. A recent market analysis indicates that demand for the product exists. Organicplus would sell each individual portion for $0.52. Packaging would cost $0.06 per portion, and fruit would cost $0.10 per portion. Fixed costs would not change. Should Organicplus continue to sell only the gallon-sized plain yogurt (sell as is) or convert the…
- Corny and Sweet grows and sells sweet corn at its roadside produce stand. The selling price per dozen is $4.00, variable costs are $1.25 per dozen, and total fixed costs are $825.00. How many dozens of ears of corn must Corny and Sweet sell to breakeven?1. SportsHaven’s garden department produces bags of mulch. Fixed cost is $17,300. Each bag sells for $3.21 with a unit cost of $1.48. How many bags of mulch must be sold to breakeven?Tommy Tomato, Incorporated (TTI) sells organic canned tomato sauces. TTI spends $50,000 purchasing, cutting, washing, grinding, and straining tomatoes into 100,000 liters of plain tomato sauce ($0.50 per liter). At this point, TTI has two choices: a) sell the plain tomato sauce for $2 per liter; or b.) take the 100,000 liters of plain tomato sauce and process them further into a gourmet seasoned pizza sauce that can be sold for $3.10 per liter. The extra seasoning and processing required to convert the plain tomato sauce into gourmet pizza sauce costs TTI $0.75 per liter. TTI can choose to sell the plain tomato sauce as-is at the "split-off point" or decide to process the sauce further into the gourmet sauce. 1. If TTI sells the 100,000 liters of gourmet pizza sauce, how much sales revenue will TTI generate? If TTI decides to simply sell the 100,000 liters of plain tomato sauce without processing it any further, how much sales revenue would TTI generate instead? How much additional…