Managerial Accounting (5th Edition)
5th Edition
ISBN: 9780134128528
Author: Karen W. Braun, Wendy M. Tietz
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Videos
Question
Chapter 8, Problem 8.47BE
To determine
Whether OP should sell plain yogurt “as is” or process it further.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
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…
58-5 Special order decision (Learning Objective 3)
Shilling Manufacturing produces and sells oil filters for $3.25 each. A retailer has offered
to purchase 20,000 oil filters for $1.55 per filter. Of the total manufacturing cost per filter
of $2.10, $1.30 is the variable manufacturing cost per filter. For this special order, Shilling
would have to buy a special stamping machine that costs $8,000 to mark the customer's
logo on the special order oil filters. The machine would be scrapped when the special
order is complete. This special order would use manufacturing capacity that would other-
wise be idle. No variable nonmanufacturing costs would be incurred by the special order.
Regular sales would not be affected by the special order.
Would you recommend that Shilling accept the special order under these conditions?
Your friend, Suzie Whitson, has designed a new type of outdoor toy that helps children learn basic concepts such as colors, numbers, and shapes. Suzie’s product will target two groups: day care centers in warm climates and home school programs. Her company is Jiffy Jet and costs for last month follow:
Factory rent
$
3,050
Company advertising
1,170
Wages paid to assembly workers
31,200
Depreciation for salespersons’ vehicles
2,100
Screws
510
Utilities for factory
825
Assembly supervisor’s salary
3,520
Sandpaper
160
President’s salary
5,040
Plastic tubing
4,090
Paint
240
Sales commissions
1,240
Factory insurance
1,150
Depreciation on cutting machines
2,140
Wages paid to painters
7,900
Assume that Suzie Whitson has decided to begin production of her outdoor children’s toy.
Required:1 and 2. Identify each of the preceding costs as either a product or a period cost. If the cost is a product cost, decide whether it…
Chapter 8 Solutions
Managerial Accounting (5th Edition)
Ch. 8 - Prob. 1QCCh. 8 - (Learning Objective 1) Keys to making short-term...Ch. 8 - (Learning Objective 2) Which is true of...Ch. 8 - (Learning Objective 3) Which of the following...Ch. 8 - Prob. 5QCCh. 8 - Prob. 6QCCh. 8 - (Learning Objective 4) A segment margin is the a....Ch. 8 - (Learning Objective 5) When resources are...Ch. 8 - (Learning Objective 6) Which of the following is...Ch. 8 - Prob. 10QC
Ch. 8 - Determine relevance of information (Learning...Ch. 8 - Prob. 8.2SECh. 8 - Prob. 8.3SECh. 8 - Prob. 8.4SECh. 8 - Prob. 8.5SECh. 8 - Prob. 8.6SECh. 8 - Prob. 8.7SECh. 8 - Prob. 8.8SECh. 8 - Product mix decision: Unlimited demand (Learning...Ch. 8 - Prob. 8.10SECh. 8 - Outsourcing production decision (Learning...Ch. 8 - Relevant information for outsourcing delivery...Ch. 8 - Prob. 8.13SECh. 8 - Prob. 8.14SECh. 8 - Prob. 8.15SECh. 8 - Determine relevant and irrelevant information...Ch. 8 - SUSTAINABILITY ES-17A Sustainability and...Ch. 8 - Prob. 8.18AECh. 8 - Prob. 8.19AECh. 8 - Analyze special order decision (Learning Objective...Ch. 8 - Prob. 8.21AECh. 8 - Prob. 8.22AECh. 8 - Prob. 8.23AECh. 8 - Discontinuing a product line (Learning Objective...Ch. 8 - Prob. 8.25AECh. 8 - Determine product mix for retailertwo stocking...Ch. 8 - Prob. 8.27AECh. 8 - Make-or-buy product component (Learning Objective...Ch. 8 - Prob. 8.29AECh. 8 - Prob. 8.30AECh. 8 - Prob. 8.31AECh. 8 - Prob. 8.32BECh. 8 - Prob. 8.33BECh. 8 - Prob. 8.34BECh. 8 - Prob. 8.35BECh. 8 - Prob. 8.36BECh. 8 - Prob. 8.37BECh. 8 - Prob. 8.38BECh. 8 - Prob. 8.39BECh. 8 - Prob. 8.40BECh. 8 - Identify constraint, then determine product mix...Ch. 8 - Determine product mix for retailertwo stocking...Ch. 8 - Prob. 8.43BECh. 8 - Prob. 8.44BECh. 8 - Prob. 8.45BECh. 8 - Determine maximum outsourcing price (Learning...Ch. 8 - Prob. 8.47BECh. 8 - Prob. 8.48APCh. 8 - Special order decision and considerations...Ch. 8 - Prepare and use contribution margin statements for...Ch. 8 - Product mix decision under constraint (Learning...Ch. 8 - Outsourcing decision given alternative use of...Ch. 8 - Prob. 8.53APCh. 8 - Prob. 8.54BPCh. 8 - Prob. 8.55BPCh. 8 - Prepare and use contribution margin statements for...Ch. 8 - Prob. 8.57BPCh. 8 - Prob. 8.58BPCh. 8 - Prob. 8.59BPCh. 8 - Decide whether to discontinue a department...Ch. 8 - Prob. 8.61ACTCh. 8 - Outsourcing Decision at a Real Company Go to the...Ch. 8 - Prob. 8.63ACTCh. 8 - Prob. 8.64ACT
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Gatorade manufactures and sells a nutrition drink for children. It wants to develop a standard cost per gallon. The following are required for production of a 100 gallon batch: 15 minutes 1,960 ounces of lime Cool-Drink at $.12 per ounce 40 pounds of sugar at $.60 per pound 63 kiwi fruit at $.50 each 100 protein tablets at $.90 each 4,000 ounces of water at $.003 per ounce Gatorade estimates that 2% of the lime Kool-Drink is wasted, 20% of the sugar is lost, and 10% of the kiwis cannot be used. Instructions Compute the standard cost of the ingredients for one gallon of the nutrition drink. Please write in wordarrow_forwardA school purchasing manager is seeking to buy tablets from either Entity A or Entity B and will pay shipping costs. The purchase price is $500 each. Entity A purchases the tablets from the manufacturer, Banana Industries (for $400). Entity A has the tablets shipped to its distribution center in Denver, and then ships them to schools when a sale is made. Entity A at times offers discounts to schools in accordance with its marketing strategy. On the other hand, Entity B sells tablets from a variety of manufacturers including Banana Industries. When a sale is made, Entity B remits the proceeds to the manufacturer, and retains a 10% commission (here $50). Entity B has no discretion as to the sales price. The manufacturer then ship the equipment to the customer. For each arrangement, indicate how much revenue and gross profit should be recognized. Provide support for your answer from the ASC and cite the applicable provisions. You should cite like this: ASC 606-10-35-3(e) so we can find…arrow_forwardmart Strike Company manufactures and sells soccer balls for teams of children in elementary and high school. Smart Strike's best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, Smart Strike expects to sell the following: Practice Balls Match Balls Units Selling Price Units Selling Price January 47,000 $8.60 6,600 $17.10 February 61,000 $8.60 7,700 $17.10 March 86,000 $8.60 13,500 $17.10 April 105,000 $8.60 17,000 $17.10 Smart Strike requires ending inventory of product to equal 20 percent of the next month's unit sales. Beginning inventory in January was 9,400 practice soccer balls and 1,320 match soccer balls. Every practice ball requires 0.7 square yard of polyvinyl chloride panels, one bladder with valve (to fill with air), and 3 ounces of glue. Smart Strike's policy is that 20…arrow_forward
- Consider the following hypothetical sales scenario. A large community college buys and takes delivery of 50 iMac computers from a local Apple store. The invoiced price is $2,800 per unit and includes hardware, software essential to the functionality of the hardware, third-party software including Microsoft Office for Mac and Adobe Creative Suite, and two years of tech service and support. Apple uses vendor-specific objective evidence to determine unit prices of $2,500 and $300 for hardware and the essential software, respectively. The third-party software typically retails for $500 (but Apple purchases it at a 50% discount) and equivalent service and support contracts are $100 per year. The customer (the community college) can opt to purchase subsequent essential software and OS upgrades. Indicate how Apple should record gross revenue for the transaction at the time the customer takes delivery of the computers. Your response should include specific dollar amounts.arrow_forwardArchie’s Apples grows organic apples and sells them to national grocery chains, local grocers, andmarkets. Archie purchased a machine for $450,000 that sorts the apples by size. The largest applesare sold as loose apples to the various stores, the medium sized apples are bagged and sold tothe grocers in their bagged state, and the smallest apples are sold to deep discounters or to a localmanufacturing plant that processes the apples into applesauce. Archie is considering keeping thesmall apples and processing them into apple juice that would be sold under Archie’s own label tolocal grocers. The small apples currently sell to the deep discounters and local manufacturers for$1.10 per dozen. The variable cost to prepare the small apples for sale, including transporting theapples, is $0.30 per dozen. Archie can sell each gallon of organic apple juice for $3.50 per gallon.It takes two dozen small apples to make one gallon of apple juice. The cost to produce the organicapple juice will be…arrow_forwardSmart Strike Company manufactures and sells soccer balls for teams of children in elementary and high school. Smart Strike's best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, Smart Strike expects to sell the following: Practice Balls Match Balls Units Selling Price Units Selling Price January 48,000 $8.85 6,400 $17.20 February 58,000 $8.85 7,500 $17.20 March 86,000 $8.85 13,000 $17.20 April 105,000 $8.85 17,000 $17.20 Smart Strike requires ending inventory of product to equal 20 percent of the next month's unit sales. Beginning inventory in January was 9,600 practice soccer balls and 1,280 match soccer balls. Every practice ball requires 0.7 square yard of polyvinyl chloride panels, one bladder with valve (to fill with air), and 2 ounces of glue. Smart Strike's policy is that 20…arrow_forward
- Each morning, Mike Root stocks the drink case at Mike's Beach Hut in Myrtle Beach, South Carolina. The drink case has 90 linear feet of refrigerated drink space. Each linear foot can hold either seven 12-ounce cans or three 20-ounce bottles. View the information on the cold drinks. MikeBeach Hut can sell all the drinks stocked in the display case each morning. Read the requirements. - X Requirement 1. What is Mike's Beach Hut's constraining factor? What should Mike's Beach Hut stock to maximize profits? The constraining factor is linear feet of shelf space What should Mike's Beach Hut stock to maximize profits? Complete the product mix analysis to determine which product would maximize Mike's Beach Hut's profits. Yummy Time 12 oz. Cans Yummy Time 20 oz. Bottles Pretty Pop 20 oz. Bottles Sales price per unit Variable cost per unit Contribution margin per unit Units per linear foot of shelf space Contribution margin per linear foot of shelf space Cold Drinks Information Mike's Beach Hut…arrow_forwardSmart Strike Company manufactures and sells soccer balls for teams of children in elementary and high school. Smart Strike's best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, Smart Strike expects to sell the following: Practice Balls Match Balls Units Selling Price Units Selling Price January 47,000 $8.55 6,700 $16.80 February 61,000 $8.55 7,600 $16.80 March 81,000 $8.55 13,500 $16.80 April 100,000 $8.55 16,000 $16.80 Smart Strike requires ending inventory of product to equal 20 percent of the next month's unit sales. Beginning inventory in January was 9,400 practice soccer balls and 1,340 match soccer balls. Every practice ball requires 0.7 square yard of polyvinyl chloride panels, one bladder with valve (to fill with air), and 3 ounces of glue. Smart Strike's policy is that 20…arrow_forwardSmart Strike Company manufactures and sells soccer balls for teams of children in elementary and high school. Smart Strike's best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, Smart Strike expects to sell the following: Practice Balls Match Balls Units Selling Price Units Selling Price January 50,000 $8.25 7,000 $16.00 February 58,000 $8.25 7,500 $16.00 March 80,000 $8.25 14,000 $16.00 April 100,000 $8.25 18,000 $16.00 Required: 1. Construct a sales budget for Smart Strike for the first three months of the coming year. Show total sales for each product line by month and in total for the first quarter. If required, round your answers to the nearest cent. Smart Strike CompanySales BudgetFor the First Quarter of Next Year January February March Quarter Practice ball: Units ____ ____ _____…arrow_forward
- Instruction: Please answer the following with complete solution and explanation. Thank you! 1. Summer Company offers a set of building blocks to customers who send in three (3) UPC codes from Summer cereal, along with P50.00. The blocks sets cost Summer P110 each to purchase and P60 each to mail to customers. During 20x1, Summer sold 1,000,000 boxes of cereal. The company expects 30% of the UPC codes to be sent in. During 20x1, 120,000 UPC codes are redeemed. Required: 1. What is the cost of estimated claims outstanding? 2. Prepare Summer’s December 31, 20x1 adjusting entry.arrow_forwardSmart Company manufactures and sells soccer balls for teams of children in elementary and high school. Smart best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, Smart expects to sell the following: Practice BaseBalls Match BaseBalls Units Selling Price Units Selling Price January 48,000 $8.85 6,400 $17.20 February 58,000 $8.85 7,500 $17.20 March 86,000 $8.85 13,000 $17.20 April 105,000 $8.85 17,000 $17.20 Smart requires ending inventory of product to equal 20 percent of the next month's unit sales. Beginning inventory in January was 9,600 practice soccer balls and 1,280 match soccer balls. Every practice ball requires 0.7 square yard of polyvinyl chloride panels, one bladder with valve (to fill with air), and 2 ounces of glue. Smart Strike's policy is that 20 percent of the following…arrow_forwardOriole Dinner Box Inc. is a catering company that sells meal kits that its customers can take home and quickly prepare. The company sells its meal kits at local grocery stores and has recently begun to offer a monthly subscription service, which delivers meal kits to the customer's home. Single meal kits can be purchased at grocery stores. Approximately 10% of the kits shipped to grocery stores each month are returned unsold and are then discarded. Oriole charges the grocery stores $15 for each meal kit. In December 2024, Oriole began selling three- month subscriptions for $900. Subscriptions are paid in advance and are non-cancellable. Oriole sold 840 subscriptions on December 1,2024, which entitle the subscriber to 15 meal kits each month beginning in December 2024. During December, 4,620 meal kits were sold, on account, to grocery stores and all required subscriber meals were delivered. Grocery stores have 30-day terms of payment with Oriole. (a1) Your answer is correct. Determine…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
Inspection and Quality control in Manufacturing. What is quality inspection?; Author: Educationleaves;https://www.youtube.com/watch?v=Ey4MqC7Kp7g;License: Standard youtube license