The Peace Department of Shalom Company uses 5,000 kilograms per month in its production of Peace products. It presently buys all the kilograms of materials it needs from outside supplier at a cost of P100. The Piss Division of Shalom Company manufactures the exact type of material that the Peace Department requires. The Piss Division is operating at its capacity of 15,000 units per month and sells all its output to a local manufacturer at P108 per unit. The following cost data are available for its 15,000 units: Variable production costs 70 All fixed costs 10 If Piss Division sells all units to the local manufacturer, will it accept Peace's offer at P75? Yes or no? Use the underlined words as your choice. Input answers in capital letters.
Q: Part B By reference to the data in part A: 1. There are both quantitative and qualitative factors…
A: While decision making, managers should consider qualitative factors such as ; On the basis on the…
Q: Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of…
A: Allowance for Doubtful Accounts - Allowance is method of making provision for uncollectible…
Q: Shalom Company manufactures socks that sell for P60 each. For the coming year, the management…
A: Contribution Margin is the amount that is arrived at after all the variable expenses of…
Q: Cullumber Company begins operations on April 1. Information from job cost sheets shows the…
A: Notes : Gross profit = Finished goods inventory x Gross profit rate
Q: The ABC Company supplies products to a number of original equipment manufacturers (OEMs). It employs…
A: Ratios are mathematical expressions used for financial analysis. Raw data are unable to predict the…
Q: Please do not provide answer in image formate thank you. Part U67 is used in one of Broce…
A: Note : In make or buy decision, management has to decide between manufacturing a product inside the…
Q: 4. X, Y, and Z have capital balances of P40,000.00, P50,000.00, and P18,000.00 and a profit –…
A: The partnership comes into existence when two or more persons agree to do the share profits and…
Q: A manufacturing company reports the following information. Current Year $ 180,000 2,420,600 Raw…
A: The inventory turnover ratio is calculated as inventory used divided by the average inventory…
Q: PEDRO, and PABLO share partnership profits and losses in a 7:3 ratio and their October 31, 2021…
A: Revaluation A/c Particulars Amount Particulars Amount To Accounts receivable (P380,000 -…
Q: Information concerning Johnston Company's direct materials costs is as follows: Standard price…
A: Direct Materials Usage Variance = (SQ - AQ) x SP Where:SQ = Standard quantity of materials allowed…
Q: Hagrid Gardening Corporation manufactures gardening products. The following information relates to…
A: Operating Income - Operating Income is calculated by deducting operating expenses from the revenue…
Q: How do you calculate Cost of goods purchased
A: Cost of goods purchased (COGP) refers to the total cost incurred by a company to purchase inventory…
Q: ABSORPTION COSTING (1) What is the cost per unit? (2) What is the gross profit margin ratio? (3)…
A: Introduction Absorption costing considers fixed costs and also variable costs as product…
Q: The CVP income statements of Peace and Shalom Company are available below. The two companies belong…
A: Introduction Breakeven is the point where the total revenue of the company is the same as…
Q: Periodic Inventory Accounting and Perpetual Inventory Accounting Check All That Apply are two…
A: Answer:- Period inventory accounting:- In this method inventory and cost of goods sold are computed…
Q: The There will be a balancing adjustment of $1,625 to be included in the assessable income.
A: Step 1: Calculate the adjustable value of the pool The adjustable value of a depreciating asset is…
Q: Which method is easier to compute? Multiple Choice effective interest method of accounting for…
A: An amortized bond is one in which the principal (face value) on the debt is paid down regularly,…
Q: Lui Coffee Company roasts and packs coffee beans. The process begins by placing coffee beans into…
A: Solution: Equivalent units of production = Beginning WIP units * % completed during the period +…
Q: Information concerning Johnston Company's direct materials costs is as follows: Standard price…
A: Direct material is the cost incurred on the making of the goods. It is a prime cost for the entity.…
Q: Exercise 20-17 (Algo) Preparation of cash budgets (for three periods) LO P2 Kayak Company budgeted…
A: The cash budget is prepared to record the cash transactions as cash receipts and cash payments for…
Q: X company acquired 90% of the voting stock of company Y by paying $75,000 in cash and stock. The…
A: Non controlling interest is the part of voting stock of the subsidiary which belongs to the…
Q: A bond with a redemption value of £100 pays coupons of £1.50 semi-annually (i.e. the ond holder…
A: Price of bond is the present value of coupon payment and present value of par value of bond taken on…
Q: The Toy Emporium Inc. has compiled the following information for the year ended December 31, 2015.…
A: As per international financial reporting standards inventory to be valued at item at item by item…
Q: upert’s Appliance Warehouse (RAW) delivers appliances to retailers throughout the city. The firm…
A: Introduction Activity-based costing is a costing method that allocates the overhead costs of…
Q: Kennedy Appliance Inc.'s Machining Department incurred $192,500 of factory overhead cost in…
A: Factory overhead that should be allocated to hoses = Factor overhead X Machine hours used for hoses…
Q: On January 1, 2024, the company obtained a $3 million construction loan with a 11% interest rate.…
A: Calculation of Weighted Average Interest Rate Principle Amount Interest Rate Interest…
Q: PT Barnum Company uses the periodic inventory system and has the following data from its December…
A: Gross profit method : Under this method a percentage of gross profit is taken to calculate the cost…
Q: Use this information about Department G to answer the question that follows. Department G had 1,920…
A: Under process costing finished goods of one process becomes material of another process. under…
Q: Ronny’s Red Hat Company purchased machinery on August 3, Year 1 for $150,000. Ronny, the owner,…
A: Depreciation Expenses - Depreciation Expense is a expense incurred on the fixed assets of the…
Q: Assume no other adjusting entries are made during the year. a. Accounts Receivable. At year-end, the…
A: Adjusting entries are those entries which are required to be prepared to match the revenues and…
Q: A company has two products A and B. it uses activity-based costing and has prepared the following…
A: Overhead costs are those that are not directly related to the production of goods or services, but…
Q: Find an article that relates to a contemporary issue on ethics. Write a paper of at least three…
A: In recent years, the issue of data privacy and surveillance has become increasingly prevalent in…
Q: Shalom Company has provided the following data concerning its costs:…
A: Spending variance :— It is the difference between actual results and flexible budget. Activity…
Q: w.128. On January 1, 2021, Adams-Meneke Corporation granted 60 million incentive stock options to…
A: 1. Compensation cost of options = Number of stock options x Fair value of stock options =…
Q: The note about debt included in the financial statements of Healdsburg Company for the year ended…
A: It is important for borrowers to understand the terms of their loan agreement, including the…
Q: Tree top Products, Ltd. sells stuffed animals to local convenience stores and small pharmacy…
A: Consignment is the agreement between two parties known as consignor and consignee, under which…
Q: Shalom Company manufactures Peace Products and sells it at P500 per unit. Variable manufacturing…
A:
Q: Preferred Dividend formula = Par value * Rate of Dividend * Number of Preferred Stocks. can u…
A: The preferred dividend formula is used to calculate the amount of dividends that a company must pay…
Q: Scot Brothers reports the following transactions for June, 2020: June 1 Purchased a two-year…
A: Under the cash basis of accounting, revenue and expenses are recognized when cash is received or…
Q: Halifax Shoes has 34% of its sales in cash and the remainder on credit. Of the credit sales, 65% is…
A: Cash budget: It implies to a financial estimation that reflects all the inflows and outflows of cash…
Q: Darlene Inc. purchased 23,600 common shares (20%) of Carlyle Ltd. on January 1, Year 4, for…
A: An investment account is a type of financial account that allows an individual or a business to…
Q: Lovell Equestrian Gear utilizes an activity based costing system for allocating overhead costs. The…
A: To calculate the total applied manufacturing overhead costs, we need to multiply the actual activity…
Q: Which of the following building will be entitled to a Division 43 deduction at 4% in the current…
A: A deduction is given to the business over the properties and the rate of deduction is also given as…
Q: Find the gross income, the adjusted gross income, and the taxable income. A single man earned wages…
A: Adjusted Gross Income (AGI) is an individual's total income from all sources, minus certain…
Q: Barefoot Industrial acquired a new delivery truck at the beginning of its current fiscal year. The…
A: Depreciation means reduction in value of asset over the period of time. Under straight line method,…
Q: Brad sold a rental house that he owned for $247,000. Brad bought the rental house five years ago for…
A: Depreciation expense refers to the systematic allocation of the cost of a long-term asset, such as a…
Q: On June 28 Lexicon Corporation acquired 100% of the common stock of Gulf & Eastern. The purchase…
A: INTRODUCTION: In-process research & development and goodwill cannot be amortized. As a result,…
Q: Provide journal entries pertaining to this lease for Tartufo Corp. for the 20X5 year. Tartufo Corp.…
A: The lease qualifies as a finance lease as the lease term is for the major part of the equipment's…
Q: Shalom Company was established at the beginning of May to produce Peace products and sell them for…
A: You have asked more than three subparts, as per guidelines we can only solve first three subparts,…
Q: During the period, Goku Company produced 8,000 units and applied overhead based on the direct labor…
A: Lets understand the basics. Variable overhead spending variance is a variance between the rate at…
Step by step
Solved in 2 steps
- Carltons Kitchens makes two types of pasta makers: Strands and Shapes. The company expects to manufacture 70,000 units of Strands, which has a per-unit direct material cost of $10 and a per-unit direct labor cost of $60. It also expects to manufacture 30.000 units of Shapes, which has a per-unit material cost of $15 and a per-unit direct labor cost of $40. It is estimated that Strands will use 140,000 machine hours and Shapes will require 60,000 machine hours. Historically, the company has used the traditional allocation method and applied overhead at a rate of $21 per machine hour. It was determined that there were three cost pools, and the overhead for each cost pool is shown: The cost driver for each cost pool and its expected activity is shown: A. What is the per-unit cost for each product under the traditional allocation method? B. What is the per-unit cost for each product under ABC costing?Vollmer Manufacturing makes three components for sale to refrigeration companies. The components are processed on two machines: a shaper and a grinder. The times (in minutes) required on each machine are as follows: The shaper is available for 120 hours, and the grinder for 110 hours. No more than 200 units of component 3 can be sold, but up to 1,000 units of each of the other components can be sold. In fact, the company already has orders for 600 units of component 1 that must be satisfied. The profit contributions for components 1, 2, and 3 are 8, 6, and 9, respectively. a. Formulate and solve for the recommended production quantities. b. What are the objective coefficient ranges for the three components? Interpret these ranges for company management. c. What are the right-hand-side ranges? Interpret these ranges for company management. d. If more time could be made available on the grinder, how much would it be worth? e. If more units of component 3 can be sold by reducing the sales price by 4, should the company reduce the price?Bobcat uses a traditional cost system and estimates next years overhead will be $800.000, as driven by the estimated 25,000 direct labor hours. It manufactures three products and estimates the following costs: If the labor rate is $30 per hour, what is the per-unit cost of each product?
- Patz Company produces two types of machine parts: Part A and Part B, with unit contribution margins of 300 and 600, respectively. Assume initially that Patz can sell all that is produced of either component. Part A requires two hours of assembly, and B requires five hours of assembly. The firm has 300 assembly hours per week. Required: 1. Express the objective of maximizing the total contribution margin subject to the assembly-hour constraint. 2. Identify the optimal amount that should be produced of each machine part and the total contribution margin associated with this mix. 3. What if market conditions are such that Patz can sell at most 75 units of Part A and 60 units of Part B? Express the objective function with its associated constraints for this case and identify the optimal mix and its associated total contribution margin.Power Corp. makes 2 products: blades for table saws and blades for handsaws. Each product passes through the sharpening machine area, which is the chief constraint during production. Handsaw blades take 15 minutes on the sharpening machine and have a contribution margin per blade of $15. Table saw blades take 20 minutes on the sharpening machine and have a contribution margin per blade of $35. If it is assumed that Power Corp. has 5,000 hours available on the sharpening machine to service a minimum demand for each product of 4,000 units, how much will profits increase if 200 more hours of machine time can be obtained?Andalus Furniture Company has two manufacturing plants, one at Aynor and another at Spartanburg. The cost in dollars of producing a kitchen chair at each of the two plants is given here. The cost of producing Q1 chairs at Aynor is: 75Q1+5Q12+100 and the cost of producing Q2 kitchen chairs at Spartanburg is: 25Q2+2.5Q22+150. Andalus needs to manufacture a total of 40 kitchen chairs to meet an order just received. How many chairs should be made at Aynor, and how many should be made at Spartanburg in order to minimize total production cost?
- Power Corp. makes 2 products: blades for table saws and blades for handsaws. Each product passes through the sharpening machine area, which is the chief constraint during production. Handsaw blades take 15 minutes on the sharpening machine and have a contribution margin per blade of $15. Table saw blades take 20 minutes on the sharpening machine and have a contribution margin per blade of $35. If it is assumed that Power Corp. has 5,000 hours available on the sharpening machine to service a minimum demand for each product of 4,000 units, how many of each product should be made?Brees, Inc., a manufacturer of golf carts, has just received an offer from a supplier to provide 2,600 units of a component used in its main product. The component is a track assembly that is currently produced internally. The supplier has offered to sell the track assembly for 66 per unit. Brees is currently using a traditional, unit-based costing system that assigns overhead to jobs on the basis of direct labor hours. The estimated traditional full cost of producing the track assembly is as follows: Prior to making a decision, the companys CEO commissioned a special study to see whether there would be any decrease in the fixed overhead costs. The results of the study revealed the following: 3 setups1,160 each (The setups would be avoided, and total spending could be reduced by 1,160 per setup.) One half-time inspector is needed. The company already uses part-time inspectors hired through a temporary employment agency. The yearly cost of the part-time inspectors for the track assembly operation is 12,300 and could be totally avoided if the part were purchased. Engineering work: 470 hours, 45/hour. (Although the work decreases by 470 hours, the engineer assigned to the track assembly line also spends time on other products, and there would be no reduction in his salary.) 75 fewer material moves at 30 per move. Required: 1. Ignore the special study, and determine whether the track assembly should be produced internally or purchased from the supplier. 2. Now, using the special study data, repeat the analysis. 3. Discuss the qualitative factors that would affect the decision, including strategic implications. 4. After reviewing the special study, the controller made the following remark: This study ignores the additional activity demands that purchasing would cause. For example, although the demand for inspecting the part on the production floor decreases, we may need to inspect the incoming parts in the receiving area. Will we actually save any inspection costs? Is the controller right?Remarkable Enterprises requires four units of part A for every unit of Al that it produces. Currently, part A is made by Remarkable, with these per-unit costs in a month when 4,000 units were produced: Variable manufacturing overhead is applied at $1.60 per unit. The other $0.50 of overhead consists of allocated fixed costs. Remarkable will need 8,000 units of part A for the next years production. Altoona Corporation has offered to supply 8,000 units of part A at a price of $8.00 per unit. If Remarkable accepts the offer, all of the variable costs and $2,000 of the fixed costs will be avoided. Should Remarkable accept the offer from Altoona Corporation?
- Gent Designs requires three units of part A for every unit of Al that it produces. Currently, part A is made by Gent, with these per-unit costs in a month when 4.000 units were produced: Variable manufacturing overhead is applied at $1.00 per unit. The other $0.30 of overhead consists of allocated fixed costs. Gent will need 6,000 units of part A for the next years production. Cory Corporation has offered to supply 6,000 units of part A at a price of $7.00 per unit. It Gent accepts the offer, all of the variable costs and $1,200 of the fixed costs will be avoided. Should Gent Designs accept the offer from Cory Corporation?Roper Furniture manufactures office furniture and tracks cost data across their process. The following are some of the costs that they incur. Classify these costs as fixed or variable costs, and as product costs or period costs. Wood used to produce desks ($125,00 per desk) Production labor used to produce desks ($15 per hour) Production supervisor salary ($45,000 per year) Depreciation on factory equipment ($60,000 per year) Selling and administrative expenses ($45,000 per year) Rent on corporate office ($44,000 per year) Nails, glue, and other materials required to produce desks (varies per desk) Utilities expenses for production facility Sales staff commission (5% of gross sales)Heller Manufacturing has two production facilities that manufacture baseball gloves. Production costs at the two facilities differ because of varying labor rates, local property taxes, type of equipment, capacity, and so on. The Dayton plant has weekly costs that can be expressed as a function of the number of gloves produced: TCD(X)=X2X+5, where X is the weekly production volume in thousands of units, and TCD(X) is the cost in thousands of dollars. The Hamilton plants weekly production costs are given by: TCH(Y)=Y2+2Y+3, where Y is the weekly production volume in thousands of units, and TCH(Y) is the cost in thousands of dollars. Heller Manufacturing would like to produce 8,000 gloves per week at the lowest possible cost. a. Formulate a mathematical model that can be used to determine the optimal number of gloves to produce each week at each facility. b. Solve the optimization model to determine the optimal number of gloves to produce at each facility.