Florida Sale Away Corporation Northeastern Division has sales of $525,000 in the year 2001. By 2012, sales had increased to $1,200,000. The Vice President of Marketing has requested that you calculate for her what the average annual rate of increase is on sales for the Northeastern Division.
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The accounting principle that requires revenue to be recorded when earned is the
The accounting principle that requires revenue to be recorded when earned is the:
a) Matching principle.
b) Revenue recognition principle
c) Time period assumption
d) Accrual reporting principle
e) Going-concern assumption
2. Adjusting entries:
a) Affect only income statement accounts
b) Affect only balance sheet accounts
c) Affect both income statement and balance sheet accounts
d) Affect only cash flow statement accounts
e) Affect only equity accounts
3. The broad principle that requires expenses to be reported in the same period as the revenues that were earned as a result of the expenses is the:
a) Recognition principle
b) Cost principle
c) Cash basis of accounting
d) Matching principle
e) Time period principle
4. The approach to preparing financial statements based on recognizing revenues when they are earned and matching expenses to those revenues is:
a) Cash basis accounting
b) The matching principle
c) The time period assumption
d) Accrual basis accounting
e) Revenue basis accounting
5. Prepaid expenses, depreciation, accrued expenses, unearned revenues, and accrued revenues are all examples of:
a) Items that require contra accounts
b) Items that require adjusting entries
c) Asset and equity
d) Asset accounts
e) Income statement accounts
6. The accrual basis of accounting:
a) Is generally accepted for external reporting because it is more useful than cash basis for most business decisions
b) Is flawed because it gives complete information about cash flows
c) Recognizes revenues when received in cash
d) Recognizes expenses when paid in cash
e) Eliminates the need for adjusting entries at the end of each period
7. Which of the following statements is incorrect?
a) Adjustments to prepaid expenses, depreciation, and unearned revenues involve previously recorded assets and liabilities
b) Accrued expenses and accrued revenues involve assets and liabilities that had not previously been recorded
c) Adjusting entries can be used to record both accrued expenses and accrued revenues
d) Prepaid expenses, depreciation, and unearned revenues often require adjusting entries to record the effects of the passage of time
e) Adjusting entries affect the cash account
8. An adjusting entry could be made for each of the following except:
a) Prepaid expenses
b) Depreciation
c) Owner withdrawals
d) Unearned revenues
e) Accrued revenues
9. A company made no adjusting entry for accrued and unpaid employee wages of $28,000 on December 31. This oversight would:
a) Understate net income by $28,000
b) Overstate net income by $28,000
c) Have no effect on net income
d) Overstate assets by $28,000
e) Understate assets by $28,000
10. If a company mistakenly forgot to record depreciation on office equipment at the end of an accounting period, the financial statements prepared at that time would show:
a) Assets overstated and equity understated
b) Assets and equity both understated
c) Assets overstated, net income understated, and equity overstated
d) Assets, net income, and equity understated
e) Assets, net income, and equity overstated
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a) Matching principle.
b) Revenue recognition principle
c) Time period assumption
d) Accrual reporting principle
e) Going-concern assumption
2. Adjusting entries:
a) Affect only income statement accounts
b) Affect only balance sheet accounts
c) Affect both income statement and balance sheet accounts
d) Affect only cash flow statement accounts
e) Affect only equity accounts
3. The broad principle that requires expenses to be reported in the same period as the revenues that were earned as a result of the expenses is the:
a) Recognition principle
b) Cost principle
c) Cash basis of accounting
d) Matching principle
e) Time period principle
4. The approach to preparing financial statements based on recognizing revenues when they are earned and matching expenses to those revenues is:
a) Cash basis accounting
b) The matching principle
c) The time period assumption
d) Accrual basis accounting
e) Revenue basis accounting
5. Prepaid expenses, depreciation, accrued expenses, unearned revenues, and accrued revenues are all examples of:
a) Items that require contra accounts
b) Items that require adjusting entries
c) Asset and equity
d) Asset accounts
e) Income statement accounts
6. The accrual basis of accounting:
a) Is generally accepted for external reporting because it is more useful than cash basis for most business decisions
b) Is flawed because it gives complete information about cash flows
c) Recognizes revenues when received in cash
d) Recognizes expenses when paid in cash
e) Eliminates the need for adjusting entries at the end of each period
7. Which of the following statements is incorrect?
a) Adjustments to prepaid expenses, depreciation, and unearned revenues involve previously recorded assets and liabilities
b) Accrued expenses and accrued revenues involve assets and liabilities that had not previously been recorded
c) Adjusting entries can be used to record both accrued expenses and accrued revenues
d) Prepaid expenses, depreciation, and unearned revenues often require adjusting entries to record the effects of the passage of time
e) Adjusting entries affect the cash account
8. An adjusting entry could be made for each of the following except:
a) Prepaid expenses
b) Depreciation
c) Owner withdrawals
d) Unearned revenues
e) Accrued revenues
9. A company made no adjusting entry for accrued and unpaid employee wages of $28,000 on December 31. This oversight would:
a) Understate net income by $28,000
b) Overstate net income by $28,000
c) Have no effect on net income
d) Overstate assets by $28,000
e) Understate assets by $28,000
10. If a company mistakenly forgot to record depreciation on office equipment at the end of an accounting period, the financial statements prepared at that time would show:
a) Assets overstated and equity understated
b) Assets and equity both understated
c) Assets overstated, net income understated, and equity overstated
d) Assets, net income, and equity understated
e) Assets, net income, and equity overstated
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How Cost Accounting Distorts Product Costs
How Cost Accounting Distorts Product Costs.
summarize the article \"How Cost Accounting Distorts Product Costs\"
500 words
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summarize the article \"How Cost Accounting Distorts Product Costs\"
500 words
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Activity Based Management at W.S.Industries (A)
Activity Based Management at W.S.Industries (A)
For the case discussion, we have to response to the article \"Activity-based Management at W.S Industries\"... We have these main questions that we have to answer (A). What are the main differences between the old cost system at W.S. Industries and the new ABC system? (B). W.S. Industries used ABC to drive continuous improvement projects (CIPs). Was it a good idea to link incentives to CIPs? Did W.S. Industries need ABC to execute CIPs? Wouldn\'t workers dream up CIP based on their local knowledge as long as their incentives were linked to savings from CIPs? (C). Is it useful to classify activities as value added and non-value added for CIPs?
500 words
Click here for the SOLUTION
For the case discussion, we have to response to the article \"Activity-based Management at W.S Industries\"... We have these main questions that we have to answer (A). What are the main differences between the old cost system at W.S. Industries and the new ABC system? (B). W.S. Industries used ABC to drive continuous improvement projects (CIPs). Was it a good idea to link incentives to CIPs? Did W.S. Industries need ABC to execute CIPs? Wouldn\'t workers dream up CIP based on their local knowledge as long as their incentives were linked to savings from CIPs? (C). Is it useful to classify activities as value added and non-value added for CIPs?
500 words
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Frito-Lay, Inc.Sun Chips Multigrain Snacks summarizing the main marketing problem, the key facts, and identifying potential future actions addressing the marketing problem
Frito-Lay, Inc.Sun Chips™ Multigrain Snacks
summarizing the main marketing problem, the key facts, and identifying potential future actions addressing the marketing problem (maximum length = 2 pages).
Click here for the SOLUTION
summarizing the main marketing problem, the key facts, and identifying potential future actions addressing the marketing problem (maximum length = 2 pages).
Click here for the SOLUTION
OPS 571 Operations Management original
1) __________ is when the activities in the stage must stop because there is no place to deposit the item just completed
A. Buffering
B. Blocking
C. Starving
D. Pacing
2) According to your text, the most common process metric is
A. productivity
B. efficiency
C. utilization
D. throughput time
3) Declining product prices
A. increase the manufacturing costs
! B. lower the break-point
C. result in lower manufacturing costs
D. increase the break-even point
4) The type of processing structure that is used for producing discrete products at a controlled rate is
A. job shop
B. batch
C. assembly line
D. project
5) The best process flow structure to use for making automobiles is
A. job shop
B. batch shop
C. group technology cell
D. assembly line
6) The break-even analysis is a standard approach to determine alternative processes A break-even analysis chart usually present alternative __________ and __________ based upon the units produced or sold
A. demand, supply
B. profits, losses
C. equipment, materials
D. variable, fixed costs
7) A statistical term that refers to the philosophy and methods companies use to eliminate defects in their products and processes by establishing a quality goal of no more than four defects out of every million units is
A. ISO 9000
B. Six Sigma
C. Total Quality Management
D. SERVQUAL
8) Independent demand is:
A. inventory where demand comes from independent suppliers
B. inventory that is independent of any known rules of demand and supply
C. demand that is related to the demand for another item
D. demand determined by the marketplace that requires forecasting
9) An inventory system designed to ensure that an item will be available on an ongoing basis throughout the year is known as
! A. Optional Replenishment System
B. Inventory Accuracy and Cycle Counting
C. ABC Inventory Planning
D. Multiperiod Inventory Systems
10) A/an __________ approach actually schedules in detail each resource using the setup and runtime required for each order
A. infinite loading
B. finite loading
C. forward scheduling
D. backward scheduling
11) What is the net result of reducing the duration of a task (crashing) not on the critical path?
A. Decreased project overhead costs
B. Reduced likelihood of liquidated damages for late delivery
C. Increased slack time associated with the task
!D. Reduction in the project duration
12) The idea of the value density calculation is
A. finding a carrier that can handle the weight
B. matching the weight of the product with an appropriate carrier
C. deciding where items should be stocked geographically and how they should be shipped
D. finding the minimum cost carrier
13) When designing a supply chain,
! A. cost vs customer service must be considered
B. quality vs cost must be considered
C. lead times vs payment terms must be considered
D. customer service vs product customization must be considered
14) According to Hau Lee, which of the following types of products need to be delivered with efficient supply-chains?
A. Custom products
B. Innovative products
C. Grocery products
D. High technology products
15) Which of the following product promotional activities would probably help make the supply chain more efficient?
A. Price promotions that expire on a specific date
B. An "everyday" low price strategy where prices are not dependent on quantity delivered with a specific order
C. Special packaging for a specific event that occurs one time each year
D. A 2-for-1 price promotion
16) The best operating level is
A. the maximum point of the cost curve
B. the level of capacity for which average unit cost is minimized
C. maximum capacity
D. the level of capacity for which total cost is minimized
17) Capacity utilization rate can be computed as
A. Capacity used – best operating level
B. Capacity used x best operating level
C. Capacity used / best operating level
D. Capacity used + best operating level
18) The objective of __________ is to provide an approach for determining the overall capacity level of capital-intensive resources that best supports the company's long-range competitive strategy
A. workforce management
B. management supervision
C. operations management
!D. strategic capacity planning
19) Lean production systems typically require
A. delivery of large lots at frequent intervals
B. buyer inspection of goods and materials
C. multiple sources from which to purchase
D. low inventory levels throughout production
20) Given that the previous forecast of 65 turned out to be four units less than the actual demand The next forecast is 66 What would be the value of alpha if the simple exponential smoothing forecast method is being used?
A. 002
B. 04
C. 004
D. 0.25
21) Linear regression sales forecasting techniques
A. work best when future sales are randomly distributed
B. will not work for declining sales
C. work best when sales are increasing
! D. will not work if future sales forecasts lie on a curve
22) What should the value of alpha be in an exponential smoothing forecast to be very responsive to recent demand?
A. Large
B. Small
C. Negative
D. Zero
23) Which of the following statements are true about time-series forecasting?
A. Time series analysis employs empirical data to forecast future events
B. Time series analysis is used to understand the system underlying and surrounding the item being forecast
C. Under time-series methods, demand is divided into the time-based components such as daily, weekly, etc
D. Time series methods are useful for long-range forecasts when the demand pattern is erratic
24) One option for altering the pattern of demand is
A. hiring employees
B. using overtime
C. carrying inventory
D. pricing
25) Aggregate planners balance
A. demand and costs
B. demand and inventories
C. demand and capacity
D. supply and inventories
26) Which of the following accurately describes a chase strategy?
A. The firm produces the same amount each day over the planning period and deals with the variations in demand through the use of inventory or overtime
B. The firm produces at the same level for several months, and then adjusts production to another level and produces at that level for several more months
C. The firm matches its production rate to meet demand by varying the size of its workforce as demand varies
D. The firm produces the same amount each day within the planning period and deals with variations in demand through the use of outsourcing partners
27) Which of the following reflects net material requirements:
A. gross requirements – scheduled receipts
B. gross requirements – projected available balance + scheduled receipts
! C. gross requirements – projected available balance - scheduled receipts
D. gross requirements – scheduled releases
28) Which MRP system input element specifies how many and when the firm plans to build each end item?
A. Inventory records file
B. Bills of material
C. Master production schedule
D. Capacity planning
29) Which of the following is true about MRP Systems?
A. Based on independent demand
B. Lot sizing is based on Economic Order Quantity
C. Demand pattern is random
D. Objective is to meet manufacturing needs
30) A Material Requirements Planning (MRP) is most valuable in industries where a number of products are made in batches using the same productive equipment and with companies involving
!A. fabrication
B. low number of units annually
C. complex, expensive products
D. assembly operations
Click here for the SOLUTION
1) __________ is when the activities in the stage must stop because there is no place to deposit the item just completed
A. Buffering
B. Blocking
C. Starving
D. Pacing
2) According to your text, the most common process metric is
A. productivity
B. efficiency
C. utilization
D. throughput time
3) Declining product prices
A. increase the manufacturing costs
! B. lower the break-point
C. result in lower manufacturing costs
D. increase the break-even point
4) The type of processing structure that is used for producing discrete products at a controlled rate is
A. job shop
B. batch
C. assembly line
D. project
5) The best process flow structure to use for making automobiles is
A. job shop
B. batch shop
C. group technology cell
D. assembly line
6) The break-even analysis is a standard approach to determine alternative processes A break-even analysis chart usually present alternative __________ and __________ based upon the units produced or sold
A. demand, supply
B. profits, losses
C. equipment, materials
D. variable, fixed costs
7) A statistical term that refers to the philosophy and methods companies use to eliminate defects in their products and processes by establishing a quality goal of no more than four defects out of every million units is
A. ISO 9000
B. Six Sigma
C. Total Quality Management
D. SERVQUAL
8) Independent demand is:
A. inventory where demand comes from independent suppliers
B. inventory that is independent of any known rules of demand and supply
C. demand that is related to the demand for another item
D. demand determined by the marketplace that requires forecasting
9) An inventory system designed to ensure that an item will be available on an ongoing basis throughout the year is known as
! A. Optional Replenishment System
B. Inventory Accuracy and Cycle Counting
C. ABC Inventory Planning
D. Multiperiod Inventory Systems
10) A/an __________ approach actually schedules in detail each resource using the setup and runtime required for each order
A. infinite loading
B. finite loading
C. forward scheduling
D. backward scheduling
11) What is the net result of reducing the duration of a task (crashing) not on the critical path?
A. Decreased project overhead costs
B. Reduced likelihood of liquidated damages for late delivery
C. Increased slack time associated with the task
!D. Reduction in the project duration
12) The idea of the value density calculation is
A. finding a carrier that can handle the weight
B. matching the weight of the product with an appropriate carrier
C. deciding where items should be stocked geographically and how they should be shipped
D. finding the minimum cost carrier
13) When designing a supply chain,
! A. cost vs customer service must be considered
B. quality vs cost must be considered
C. lead times vs payment terms must be considered
D. customer service vs product customization must be considered
14) According to Hau Lee, which of the following types of products need to be delivered with efficient supply-chains?
A. Custom products
B. Innovative products
C. Grocery products
D. High technology products
15) Which of the following product promotional activities would probably help make the supply chain more efficient?
A. Price promotions that expire on a specific date
B. An "everyday" low price strategy where prices are not dependent on quantity delivered with a specific order
C. Special packaging for a specific event that occurs one time each year
D. A 2-for-1 price promotion
16) The best operating level is
A. the maximum point of the cost curve
B. the level of capacity for which average unit cost is minimized
C. maximum capacity
D. the level of capacity for which total cost is minimized
17) Capacity utilization rate can be computed as
A. Capacity used – best operating level
B. Capacity used x best operating level
C. Capacity used / best operating level
D. Capacity used + best operating level
18) The objective of __________ is to provide an approach for determining the overall capacity level of capital-intensive resources that best supports the company's long-range competitive strategy
A. workforce management
B. management supervision
C. operations management
!D. strategic capacity planning
19) Lean production systems typically require
A. delivery of large lots at frequent intervals
B. buyer inspection of goods and materials
C. multiple sources from which to purchase
D. low inventory levels throughout production
20) Given that the previous forecast of 65 turned out to be four units less than the actual demand The next forecast is 66 What would be the value of alpha if the simple exponential smoothing forecast method is being used?
A. 002
B. 04
C. 004
D. 0.25
21) Linear regression sales forecasting techniques
A. work best when future sales are randomly distributed
B. will not work for declining sales
C. work best when sales are increasing
! D. will not work if future sales forecasts lie on a curve
22) What should the value of alpha be in an exponential smoothing forecast to be very responsive to recent demand?
A. Large
B. Small
C. Negative
D. Zero
23) Which of the following statements are true about time-series forecasting?
A. Time series analysis employs empirical data to forecast future events
B. Time series analysis is used to understand the system underlying and surrounding the item being forecast
C. Under time-series methods, demand is divided into the time-based components such as daily, weekly, etc
D. Time series methods are useful for long-range forecasts when the demand pattern is erratic
24) One option for altering the pattern of demand is
A. hiring employees
B. using overtime
C. carrying inventory
D. pricing
25) Aggregate planners balance
A. demand and costs
B. demand and inventories
C. demand and capacity
D. supply and inventories
26) Which of the following accurately describes a chase strategy?
A. The firm produces the same amount each day over the planning period and deals with the variations in demand through the use of inventory or overtime
B. The firm produces at the same level for several months, and then adjusts production to another level and produces at that level for several more months
C. The firm matches its production rate to meet demand by varying the size of its workforce as demand varies
D. The firm produces the same amount each day within the planning period and deals with variations in demand through the use of outsourcing partners
27) Which of the following reflects net material requirements:
A. gross requirements – scheduled receipts
B. gross requirements – projected available balance + scheduled receipts
! C. gross requirements – projected available balance - scheduled receipts
D. gross requirements – scheduled releases
28) Which MRP system input element specifies how many and when the firm plans to build each end item?
A. Inventory records file
B. Bills of material
C. Master production schedule
D. Capacity planning
29) Which of the following is true about MRP Systems?
A. Based on independent demand
B. Lot sizing is based on Economic Order Quantity
C. Demand pattern is random
D. Objective is to meet manufacturing needs
30) A Material Requirements Planning (MRP) is most valuable in industries where a number of products are made in batches using the same productive equipment and with companies involving
!A. fabrication
B. low number of units annually
C. complex, expensive products
D. assembly operations
Click here for the SOLUTION
Emotional intelligence abilities and their relationships with team processesby Nicholas ClarkeSchool of Management, University of Southampton, Southampton, UK
Emotional intelligence abilities and their relationships with team processesby Nicholas ClarkeSchool of Management, University of Southampton, Southampton, UK
Please read the article by Clarke (2010) and answer the following questions in writing using 1,500 words overall. You do not need to write this as an essay, just answer each question individually. Please make sure that you also submit it onto OASISPlus by the deadline. Q1) What is the article by Clarke (2010) all about? Q2) What are the main theoretical predictions of this study? Q3) What are the findings of Clarke’s (2010) study? Q4) How can organisations make use of these findings?
Click here for the SOLUTION
Please read the article by Clarke (2010) and answer the following questions in writing using 1,500 words overall. You do not need to write this as an essay, just answer each question individually. Please make sure that you also submit it onto OASISPlus by the deadline. Q1) What is the article by Clarke (2010) all about? Q2) What are the main theoretical predictions of this study? Q3) What are the findings of Clarke’s (2010) study? Q4) How can organisations make use of these findings?
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Integrative Cae The Donor Services Department
Integrative Cae The Donor Services Department
General steps to follow (for both writing and presentation): 1) List the facts. 2) Make inferences about the facts. 3) What is the problem (and Why)? 4) Possible solutions to the problem. 5) For each alternative, list positive and negative consequences. 6) Make decision and provide rationale for it. 7) Describe your “lessons learned” form the case.
650 words paper
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General steps to follow (for both writing and presentation): 1) List the facts. 2) Make inferences about the facts. 3) What is the problem (and Why)? 4) Possible solutions to the problem. 5) For each alternative, list positive and negative consequences. 6) Make decision and provide rationale for it. 7) Describe your “lessons learned” form the case.
650 words paper
Click here for the SOLUTION
The Property, located in Brooklyn, New York, is a 326,608 gross square foot, six story, structure located north of the Williamsburg Bridge
BROOKLYN, NY
BACKGROUND
The Property, located in Brooklyn, New York, is a 326,608 gross square foot, six story, structure located north of the Williamsburg Bridge. The Property is bounded by the East River to the west, K avenue to the east, North 3rd street to the south and North 4th street to the North. Occupying an entire city block, the Property sits on 3.03 acres and has an 82,429 square foot floor plate. The building is currently unoccupied and certain demolition has commenced. The U.S. Department of the Interior National Park Service and the New York State Historic Preservation Office have approved the rehabilitation plan. Residential unit sizes and layouts have been optimized based on the façade and window locations resulting in approximately 270,000 square feet of rentable area and 338 units. Many units will have city and water views and all units will feature loft style finishes and high ceilings. Ground floor retail space will total approximately 17,000 square feet and the Property will have parking spaces on the cellar, first and second floors. Other amenities include an extensive fitness and gym facility with water views, library, TV and activity lounge, children’s playroom, a landscaped private garden on the second floor, a large third floor courtyard, roof top terrace, on-site leasing office, and 24 hour doorman and security. Because the project qualifies for New York City’s J-51 Tax Benefit, there will be no real estate taxes until 11/1/2019. After that date, taxes will be phased in at 20% per annum over the following five years.
ASSIGNMENT
Suppose that you are a tax credit investor considering making an equity investment in this project. In addition to the tax credits that you will receive, you will also be paid a preferred return of 2% annually from available cash flow. Tax credits can be used dollar-for-dollar to offset federal income tax liability.
Please construct a 10-year pro-forma income statement for the project using the information provided in the attached Excel workbook.
Using the information from the project’s operations, please provide a 1 page narrative describing whether or not you would invest in this project and why. Please provide any supporting analysis used to reach your conclusion and state any assumptions that you have made.
Click here for the SOLUTION
BACKGROUND
The Property, located in Brooklyn, New York, is a 326,608 gross square foot, six story, structure located north of the Williamsburg Bridge. The Property is bounded by the East River to the west, K avenue to the east, North 3rd street to the south and North 4th street to the North. Occupying an entire city block, the Property sits on 3.03 acres and has an 82,429 square foot floor plate. The building is currently unoccupied and certain demolition has commenced. The U.S. Department of the Interior National Park Service and the New York State Historic Preservation Office have approved the rehabilitation plan. Residential unit sizes and layouts have been optimized based on the façade and window locations resulting in approximately 270,000 square feet of rentable area and 338 units. Many units will have city and water views and all units will feature loft style finishes and high ceilings. Ground floor retail space will total approximately 17,000 square feet and the Property will have parking spaces on the cellar, first and second floors. Other amenities include an extensive fitness and gym facility with water views, library, TV and activity lounge, children’s playroom, a landscaped private garden on the second floor, a large third floor courtyard, roof top terrace, on-site leasing office, and 24 hour doorman and security. Because the project qualifies for New York City’s J-51 Tax Benefit, there will be no real estate taxes until 11/1/2019. After that date, taxes will be phased in at 20% per annum over the following five years.
ASSIGNMENT
Suppose that you are a tax credit investor considering making an equity investment in this project. In addition to the tax credits that you will receive, you will also be paid a preferred return of 2% annually from available cash flow. Tax credits can be used dollar-for-dollar to offset federal income tax liability.
Please construct a 10-year pro-forma income statement for the project using the information provided in the attached Excel workbook.
Using the information from the project’s operations, please provide a 1 page narrative describing whether or not you would invest in this project and why. Please provide any supporting analysis used to reach your conclusion and state any assumptions that you have made.
Click here for the SOLUTION
Tuscarora Hardwoods, a custom manufacturer of furniture, uses job-order costing
Tuscarora Hardwoods, a custom manufacturer of furniture, uses job-order costing. The following tran.-
actions to support job MRS-55 for a custom meeting room set-a large table plus 16 chairs-occurre:
in January:
a. Purchased $10,000 ofraw materials.
b. Issued $500 of supplies from raw-material inventory.
c. Purchased $7,000 ofraw material.
d. Paid for the raw material purchased in transaction (a).
e. Issued $8,500 in raw material to the production department.
f. Incurred production labor costs of $12,500, which were credited to Payroll Payable.
g. Paid $23,250 cash for utilities, power, equipment maintenance, and miscellaneous items for the
manufacturing plant.
h. Applied overhead on the basis of 185 percent of $8,500 in material costs.
i. Recognized depreciation on manufacturing property, plant, and equipment of $6,250.
Required
Prepare journal entries to record these transactions.
Click here for the SOLUTION
actions to support job MRS-55 for a custom meeting room set-a large table plus 16 chairs-occurre:
in January:
a. Purchased $10,000 ofraw materials.
b. Issued $500 of supplies from raw-material inventory.
c. Purchased $7,000 ofraw material.
d. Paid for the raw material purchased in transaction (a).
e. Issued $8,500 in raw material to the production department.
f. Incurred production labor costs of $12,500, which were credited to Payroll Payable.
g. Paid $23,250 cash for utilities, power, equipment maintenance, and miscellaneous items for the
manufacturing plant.
h. Applied overhead on the basis of 185 percent of $8,500 in material costs.
i. Recognized depreciation on manufacturing property, plant, and equipment of $6,250.
Required
Prepare journal entries to record these transactions.
Click here for the SOLUTION
The 601 blue Jean Company has decided to allocate the cost of its warehouse and distribution centre to its customers using activity-based costing
The 601 blue Jean Company has decided to allocate the cost of its warehouse and distribution centre to its customers using activity-based costing, In order to better assess profitability by customer. The warehouse manager determines that the only costs that are economically feasible to trace directly to the customer are outbound freight costs. The manager then decides that the following overhead cost pools should be allocated to customers using the following cost drivers:
Overhead Cost Pool
Cost Driver(Allocation Base)
Order Processing Department
Order Filling Department
Quality Control Department
Shipping Department
Number of individual orders processed for that customer
Number of line items on all pull-tickets for that customer
Numbers of cartons shipped to that customer
Number of cartons shipped to that customer
Following are relevant data for each overhead cost pool
Order Processing Department
Total costs of this department
Total number of orders processed
Order Filling Department
Total cost of this department
Total number of line-items on all pull tickets
Quality Control Department
Total cost of this department
Total number of cartons shipped
Shipping Department
Total cost of this department
Total number of cartons shipped
$3,000,000
$200,000
$4,000,000
$4,000,000
$500,000
$2,000,000
$7,500,000
$2,000,000
Following is information pertaining to two customers:
7-9-11 Stores:
Sales revenue for the year
Number of orders
Number of pull ticket line-items
Number of cartons
Outbound freight costs
Men’s Large and Big Stores:
Sales revenue for the year
Number of orders
Number of pull ticket line-items
Number of cartons
Outbound freight costs
$2,400,000
$500
$100,000
$50,000
$75,000
$1,500,000
$250
$20,000
$40,000
$56,000
Required:
A) Compute the overhead rates for each of the four overhead cost pools
B) Calculate the amount of overhead that would be applied to 7-9-11 Stores
C) Calculate the amount of overhead that would be applied to Men’s Large & Big Stores
D) Explain (in one or two sentences) or show (by calculation) how your answer to parts (B) and (C) would change if the company combined Quality Control and Shipping into one overhead cost pool, and allocated overhead for this cost pool to customers based on the number of cartons shipped to that customer.
Click here for the SOLUTION
Overhead Cost Pool
Cost Driver(Allocation Base)
Order Processing Department
Order Filling Department
Quality Control Department
Shipping Department
Number of individual orders processed for that customer
Number of line items on all pull-tickets for that customer
Numbers of cartons shipped to that customer
Number of cartons shipped to that customer
Following are relevant data for each overhead cost pool
Order Processing Department
Total costs of this department
Total number of orders processed
Order Filling Department
Total cost of this department
Total number of line-items on all pull tickets
Quality Control Department
Total cost of this department
Total number of cartons shipped
Shipping Department
Total cost of this department
Total number of cartons shipped
$3,000,000
$200,000
$4,000,000
$4,000,000
$500,000
$2,000,000
$7,500,000
$2,000,000
Following is information pertaining to two customers:
7-9-11 Stores:
Sales revenue for the year
Number of orders
Number of pull ticket line-items
Number of cartons
Outbound freight costs
Men’s Large and Big Stores:
Sales revenue for the year
Number of orders
Number of pull ticket line-items
Number of cartons
Outbound freight costs
$2,400,000
$500
$100,000
$50,000
$75,000
$1,500,000
$250
$20,000
$40,000
$56,000
Required:
A) Compute the overhead rates for each of the four overhead cost pools
B) Calculate the amount of overhead that would be applied to 7-9-11 Stores
C) Calculate the amount of overhead that would be applied to Men’s Large & Big Stores
D) Explain (in one or two sentences) or show (by calculation) how your answer to parts (B) and (C) would change if the company combined Quality Control and Shipping into one overhead cost pool, and allocated overhead for this cost pool to customers based on the number of cartons shipped to that customer.
Click here for the SOLUTION