Provide a brief conclusion of the case study.
Q: statements for the year ended Dec 3 A). Uber showed a loss of $570 million on sales of 17.455…
A: Break-Even Point - The revenue per unit less the variable expenses per unit is used in the breakeven…
Q: 1. On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed…
A: INTRODUCTION Present value means the value of future cash flows at the present date. Future value…
Q: Question 20 On Jan 01, 2020, ACME Incorporated issued $10 million of 6% convertible bonds at 100,…
A: Convertible bonds are those bonds that can be converted into equity at the time or before maturity.…
Q: Which feature in QuickBooks Online reports allows you to customize section titles on certain…
A: QuickBooks is defined as the type of accounting software that provides cloud based applications…
Q: Required: Determine the best alternative for Harding, assuming that Harding can borrow funds at a 7%…
A: Present Value means the present worth of the money to be received or paid in the future period(s).…
Q: The Revenue Account of a life insurance company shows the life assurance fund on 31st March, 2020 at…
A: Errors of omission are defined as those errors that result from a partial or complete omission of a…
Q: QUESTION: 1 The following Trial balance was extracted from the book of Jim Jones a Sole Trader at…
A: Balance sheet: It is a financial statement prepared to show the financial position of the company…
Q: Entries for Issuing Bonds Thomson Co. produces and distributes semiconductors for use by computer…
A: The question asked to prepare the journal entries in the books of Thompson Co. Journal entries:…
Q: This problem is a continuation of the problem in Section 11.5 of the chapter. In the chapter, the…
A: Consolidation - When an asset oscillates between a well-defined pattern of trading levels, it is…
Q: lease
A: A lease agreement is a contractual arrangement wherein the user pays the asset owner for the use of…
Q: i) Which is a better account? Savings or time deposit? Support your answer. (ii) Why is there a…
A: There are many times of account available in banking system to satisfy the customers need of the…
Q: the battery division (Division X) and the adaptor division (Division Y). Division Y sells one…
A: Transfer Price - The price that one division of a firm charges another division for the goods and…
Q: Jacobs Company issued bonds with a $162,000 face value on January 1, Year 1. The bonds were issued…
A: The entire assets of a firm are equal to the sum of its liabilities and shareholders' equity,…
Q: In 2021, Landon has self-employment earnings of $196,000. Required: Compute Landon's self-employment…
A: For 2021, the social Security limit will be 12.4% of first 137,700 and additional 2.9% for Medicare…
Q: depreciation expense
A: Deprecation is a non cash expense that’s charged to profit and loss account. Also, it gets reduced…
Q: A customer buys a company product on the internet for $1,000 with bitcoins. At the end of the year…
A: The company's income statement will show sales of $1,000 because that is the amount of money that…
Q: eBook Show Me How ator=&inprogress=false Upd. Issuing Bonds at a Discount On the first day of the…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy…
A: Income Statement :— It is one of the financial statement that shows profitability of company during…
Q: If Michelle knows that the ending inventory at retail for her corner store is $22 000 and her cost…
A: INTRODUCTION: Ending inventory is the cost of items on hand at the end of a reporting period. The…
Q: impairment loss
A: Impairment loss is essentially a decrease/reduction in the net carrying value of any given asset…
Q: On January 2, 2015, Sarasota Corporation issued $1,550,000 of 10 % bonds at 98 due December 31,…
A: An accounting author's journal entries serve as both a record of a company's financial activities. A…
Q: [The following information applies to the questions displayed below.] In 2021, the Westgate…
A: The revenue or loss on a contract process is calculated on the basis of work completed or percentage…
Q: Trigger Ltd. purchased a machinery for $100,000 on Jan 1, 2019. The machine was depreciated at 10%…
A: The method of depreciation can be changed without retrospective effect or with retrospective effect.…
Q: Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the…
A: Budgeted cash Collections Expected in September from Accounts Receivables = 70% of Sales are on…
Q: Haffner Corporation uses the weighted-average method in its process costing system. Data concerning…
A: The practice of checking records to ensure that project expenses match current project activities is…
Q: A transaction has been recorded in the T-accounts of Gibbs Company as follows: Unearned Revenue…
A: From the posting to the accounts it is clear that cash is debited and accrued revenue is credited…
Q: SABIC is preparing its master budget for the coming year 2023. Relevant data pertaining to its…
A: An income statement is a financial report that indicates the revenue and expenses of a business. It…
Q: The following transactions occurred in April at Steve's Cabinets, a custom cabinet firm. 1.…
A: The simplest approach to maintaining track of a business transaction is through journal entries. The…
Q: If the person (working in GEMADEPT LOGISTIC (HOSE)) you are interviewing were back in school taking…
A: If the person I am interviewing were back in school taking a management accounting class, there are…
Q: Bobzien, Incorporated, manufactures and sells two products: Product B7 and Product Z5. Data…
A: Activity-based costing (ABC): It is a costing method in which overhead and indirect costs are…
Q: What are the main advantages to a debtor filing a Chapter 13 petition in Bankruptcy instead of a…
A: The debtor is an accounting term. A debtor can be a person or an entity owing money to another. For…
Q: Each of the following Independent events requires a year-end adjusting entry. a. Paid $9,100 cash in…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: Net Solutions purchased 200 units of Commodity 30 on account for $15 each FOB shipping point, credit…
A: Oct 21 Debit Accounts Payable (200 units x $15) = $3,000 Credit Inventory (200 units x $15) =…
Q: Account Number (1) (2) (3) (4) (5) (6) (7) (8) Account Title Cash Service Revenue Accounts…
A: The business operations and financial performance of an organization are described in financial…
Q: What are 2 ways to begin setting up a recurring transaction in QuickBooks Online?
A: The correct answers are: (C) Gear > recurring transactions (E) Select the make recurring option…
Q: S S
A: Activity Based Costing is essentially a costing method that distributes the different incurred costs…
Q: If the selling price per unit is $47. Total fixed costs are 55,500 and breakeven volume of sales are…
A: Variable costs are production expenses that fluctuate according to changes in a company's production…
Q: comprehensive personal liability (CPL) coverage
A: Personal liability turns up in case of an accident, inside or outside of your house, which leads to…
Q: Question 7 Which 4 transaction types can be made into recurring templates? Transfer Deposit Bill…
A: Recurring transactions are those transactions where one can setup transactions to record…
Q: Kindly make a thorough analysis or explanation of this
A: Income statement is used by the company in order to show the net income or net loss for the company.…
Q: Prepare a statement of cash flows from the following information. Balance sheet Cash Accounts…
A: A cash flow report is a type of financial report that lists all of the inflows of money that a…
Q: Compute Lead Time Jackson Fabricators Inc. machines metal parts for the automotive industry. Under…
A: Value added time :— It is the total processing time required in production. It is the time required…
Q: Spock Ltd uses a job costing system. Un I had a balance of $8 600, made up as follows: Job No. 501…
A: Job costing seems to be the technique of determining the overall cost of completing a job in…
Q: 2.S. (# of comp.) Support Info Sys OH Before All 240,000 Support work by H.R. 50 (# of employes) 25%…
A: The support department provides services to the other department. The cost of the support department…
Q: Each of the following taxpayers purchased furniture online and had it delivered to their home. Which…
A: A conditional sales tax is referred to as a use tax. When a sales tax would typically imposed in the…
Q: Sonic Inc. Production Budget For the Month Ending June 30 Total units available Total units to be…
A: Sales budgets seem to be budgetary plans which forecast the overall revenue that a business tends to…
Q: Prepare journal entries to record each of the following purchases transactions of a merchandising…
A: Journal is a book in which all the transactions of a business are recorded for the first time. The…
Q: The following data were accumulated for use in reconciling the bank account of Creative Design Co.…
A: A document known as a bank reconciliation statement compares the cash balance on a company's balance…
Q: Darden Corporation uses the weighted-average method in its process costing system. The first…
A: Conversion costs are the production expenses needed to transform raw materials into finished goods.…
Q: Variable Cost of Manufacturing Component: $15 per unit Outside Purchase Price: $18 per unit…
A: When a company or individual is indifferent between two options is break even point. The break-even…
Provide a brief conclusion of the case study.
Step by step
Solved in 2 steps
- John Patrick has recently been hired as controller of Valdosta Vinyl Company (VVC), a manufacturer of vinyl siding used in residential construction. VVC has been in the vinyl siding business form any year sand is currently investigating ways to modernize its manufacturing process. At the first staff meeting Patrick attended, Jack Kielshesky , chief engineer, presented a proposal for automating the Molding Department. Kielshesky recommended that the company purchase two robots that would have the capability of replacing the eight direct-labor employees in the department. The cost savings outlined in the proposal include the elimination of direct-labor cost in the Molding Department plus a reduction of manufacturing overhead cost in the department to zero, because VVC charges manufacturing overhead on the basis of direct-labor dollars using a plant wide rate. The president of VVC was puzzled by Kielshesky's explanation: “This just doesn't make any sense. How can a department’s overhead…Danielle Hastings was recently hired as a cost analyst by CareNet Medical Supplies Inc. One of Danielle's first assignments was to perform a net present value analysis for a new warehouse. Danielle performed the analysis and calculated a present value index of 0.75. The plant manager, Jerrod Moore, is intent on purchasing the warehouse because he believes that more storage space is needed. Jerrod asks Danielle to come to his office, where the following conversation takes place: Jerrod: Danielle, you're new here, aren't you? Danielle: Yes, I am. Jerrod: Well, Danielle, I'm not at all pleased with the capital investment analysis that you performed on this new warehouse. I need that warehouse for my production. If I don't get it, where am I going to place our output? Danielle: Well, we need to get product into our customers' hands. Jerrod: I agree, and we need a warehouse to do that. Danielle: My analysis does not support constructing a new warehouse. The numbers…Danielle Hastings was recently hired as a cost analyst by CareNet Medical Supplies Inc. One of Danielle’s first assignments was to perform a net present value analysis for a new warehouse. Danielle performed the analysis and calculated a present value index of 0.75. The plant manager, Jerrod Moore, is very intent on purchasing the warehouse because he believes that more storage space is needed. Jerrod asks Danielle into his office and the following conversation takes place: Jerrod: Danielle, you’re new here, aren’t you? Danielle: Yes, I am. Jerrod: Well, Danielle, I’m not at all pleased with the capital investment analysis that you performed on this new warehouse. I need that warehouse for my production. If I don’t get it, where am I going to place our output? Danielle: Well, we need to get product into our customers’ hands. Jerrod: I agree, and we need a warehouse to do that. Danielle: My analysis does not support constructing a new warehouse. The numbers don’t lie; the warehouse does…
- "MacGyver Corporation manufactures a product called Miracle Goo, which comes in handy for just about anything. The thick tarry substance is sold in six-gallon drums. Two raw materials are used; these are referred to by people in the business as A and B. Two types of labor are required also. These are mixers (labor class I) and packers (labor class II). You were recently hired by the company president, Pete Thorn, to be the controller. You soon learned that MacGyver uses a standard-costing system. Vari-ances are computed and closed into Cost of Goods Sold monthly. After your first month on the job, you gathered the necessary data to compute the month’s variances for direct material and direct labor. You finished everything up by 5:00 p.m. on the 31st, including the credit to Cost of Goods Sold for the sum of the variances. You decided to take all your notes home to review them prior to your formal presenta-tion to Thorn first thing in the morning. As an afterthought, you…Our examples in the chapter have focused on manufacturing, where the output is units of product and the inputs are manufacturing activities or costs. The concept of productivity can be applied in a variety of settings, wherever there are inputs and outputs. For example, consider LandscapeCity, a landscape design company that specializes in small landscape projects for people living in cities. Amanda Caldwell, the assistant manager, is in the process of trying to determine if productivity has been improving since she was hired 6 months ago. Because it is a design firm, labor is the only significant expense, but Amanda is unsure if the number of projects or the dollar of sales volume should be used when computing productivity. She has collected these data for sales and labor expenses for the past 6 months: Month Labor Expense Number of Projects Sales Dollars 1 $ 20,830 43 $ 20,990 2 27,840 58 22,800 3 20,292 50 29,680 4 14,094 14 19,460 5 14,826 19 22,580 6 21,492 50…Goulburn, Incorporated produces parts for heavy equipment used in mining and construction. The plant that produces one part common to many vehicles is highly automated, so all labor is considered part of factory overhead. The plant manager, who has just been promoted, would like to understand how overhead costs fluctuate in order to improve planning and budgets. After discussions with both financial and operations members of the plant staff, there is general agreement that the best cost driver for overhead is machine-hours. Monthly data were collected from the most recent two years on machine-hours and overhead. More months of data were available, but a process change had taken place about 30 months earlier, so the staff believed any data from before that time would be misleading. The data are shown in the following table: Month Machine-Hours Factory Overhead 1 39,300 $ 527,100 2 37,300 416,500 3 30,100 365,800 4 42,400 498,200 5 50,600 590,700 6 45,500 503,400 7…
- Goulburn, Incorporated produces parts for heavy equipment used in mining and construction. The plant that produces one part common to many vehicles is highly automated, so all labor is considered part of factory overhead. The plant manager, who has just been promoted, would like to understand how overhead costs fluctuate in order to improve planning and budgets. After discussions with both financial and operations members of the plant staff, there is general agreement that the best cost driver for overhead is machine-hours. Monthly data were collected from the most recent two years on machine-hours and overhead. More months of data were available, but a process change had taken place about 30 months earlier, so the staff believed any data from before that time would be misleading. The data are shown in the following table: Month 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Machine-Hours 40,300 38,300 31,100 43,400 51,600 46,500 43,400 63,100 37,300 54,700 53,700 37,300 60,900 59,900…Big Boomers makes custom clubs for golfers. Most of the work is done by hand and with small tools used by craftsmen. Customers are quoted a price in advance of their clubs being manufactured. To produce clubs at a profit, management must have a thorough understanding of product costs. Jeff Ranck, manager of the business, is using direct labor hours as the activity base for allocating overhead costs. He estimated the following amounts at the beginning of 2022: Estimated total overhead. .$190,000Estimated direct labor hou .16,000 hours The following information is available for job number 17, which was started and completed in February 2022: - Direct materials used$1200- Direct labor used$600(corresponding to 50 direct labor hours) Prepare journal entries to: a. Record all the manufacturing costs charged to job 17 . b. Record the completion of job 17. c. Record the cash sale of job 17 in its entirety at a selling price of13%of its manufacturing cost. Record in a separate entry the…Rick Pines and Joe Lopez are the plant managers for High Mountain Lumber’s particleboard division. High Mountain Lumber has adopted a just-in-time management philosophy. Each plant combines wood chips with chemical adhesives to produce particle board to order, and all product is sold as soon as it is completed. Laura Green is High Mountain Lumber’s regional controller. All of High Mountain Lumber’s plants and divisions send Green their production and cost information. While reviewing the numbers of the two particleboard plants, she is surprised to find that both plants estimate their ending Work-in-Process Inventories at 75% complete, which is higher than usual. Green calls Lopez, whom she has known for some time. He admits that to ensure their division would meet its profit goal and that both he and Pines would make their bonus (which is based on division profit), they agreed to inflate the percentage completion. Lopez explains, “Determining the percent complete always requires…
- Cassidy Manning is the assistant controller at LeMar Packaging, Inc., a manufacturer of cardboard boxes and other packaging materials. Manning has just returned from a packaging industry conference on activity-based costing. She realizes that ABC may help LeMar meet its goal of reducing costs by 5% over each of the next three years. LeMar Packaging’s Order Department is a likely candidate for ABC. While orders are entered into a computer that updates the accounting records, clerks manually check customers’ credit history and hand-deliver orders to shipping. This process occurs whether the sales order is for a dozen specialty boxes worth $80 or 10,000 basic boxes worth $8,000. Manning believes that identifying the cost of processing a sales order would justify (1) further computerization of the order process and (2) changing the way the company processes small orders. However, the significant cost savings would arise from the elimination of two positions in the Order Department. The…Rick Pines and Joe Lopez are the plant managers for High Mountain Lumber’s particle board division. High Mountain Lumber has adopted a just-in-time management philosophy. Each plant combines wood chips with chemical adhesives to produce particle board to order, and all product is sold as soon as it is completed. Laura Green is High Mountain Lumber’s regional controller. All of High Mountain Lumber’s plants and divisions send Green their production and cost information. While reviewing the numbers of the two particle board plants, she is surprised to find that both plants estimate their ending Work-in-Process Inventories at 75% complete, which is higher than usual. Green calls Lopez, whom she has known for some time. He admits that to ensure their division would meet its profit goal and that both he and Pines would make their bonus (which is based on division profit), they agreed to inflate the percentage completion. Lopez explains, “Determining the percent complete always requires…During your first month as an employee at Greenfield Industries (a large drill-bit manufacturer), you are asked to evaluate alternatives for producing a newly designed drill bit on a turning machine. Your boss' memorandum to you has practically no information about what the alternatives and what criteria should be used. The same task was posed to a previous employee who could not finish the analysis, but she has given you the following information: An old turning machine valued at $350,000 exists (in the warehouse) that can be modified for the new drill bit. The in-house technicians have given an estimate of $40,000 to modify this machine, and they assure you that they will have the machine ready before the projected start date (although they have never done any modifications of this type). It is hoped that the old turning machine will be able to meet production requirements at full capacity. An outside company, McDonald Inc., made the machine seven years ago and can…