Info
Warning
Danger

Accounting Expert Answers, Study Resources & Learning Aids

The vast field of accounting contributes to one of the largest subjects in our study resources. Accounting flashcards, homework answers for textbooks & other learning aids can increase your competency in this domain instantly. Become a top student with our support. Search Now…

Ask an Expert

Our Experts can answer your tough homework and study questions.

Answers in as fast as 15 minutes
Post a Question
aEx. 195 Leoparod Company developed the following unit information for January, 2014, its first month of operations: Per UnitTotal Costs Sales price$20 Variable costs Direct materials5 Direct labor3 Variable manufacturing overhead4 Selling and administrative expenses2 Fixed selling and administrative expenses$31,000 Fixed manufacturing overhead46,000 During January, 16,000 units were produced and 12,000 units were sold. Instructions (a)Prepare an income statement under the variable costing.
10 Views
View Answer
Ex. 181 The Assembly Department of Nitz Company has the following production and cost data at the end of May, 2017. Production:30,000 units started into production; 25,000 units transferred out and 5,000 units 100% completed as to materials and 40% completed as to conversion costs. Manufacturing Costs:Materials added at beginning of process, $90,000;.
7 Views
View Answer
Ex. 170 Corris Co. accumulates the following data concerning a mixed cost, using miles as the activity level. Miles DrivenTotal Cost January10,000$17,000 February8,00013,500 March9,00014,400 April7,00012,500 Instructions Compute the variable and fixed cost elements using the high-low method. Ex. 171 Moresan Co. gathered the following information on power costs and factory machine usage for the last six months: MonthPower CostFactory Machine Hours January$24,40013,900 February30,40017,600 March29,00016,800 April22,34013,200 May19,90011,600 June16,9008,600 Instructions Using.
16 Views
View Answer
BE 161 Hurly Co. has fixed costs totaling $165,000. Its unit contribution margin is $1.50, and the selling price is $5.50 per unit. Instructions Compute the break-even point in units. BE 162 Salem Bakery sells boxes of donuts each with a variable cost percentage of 35%. Its fixed costs are $54,600 per year. Instructions Determine the sales.
12 Views
View Answer
TRUE-FALSE STATEMENTS 1.An activity index identifies the activity that has a causal relationship with a particular cost. 2.A variable cost remains constant per unit at various levels of activity. 3.A fixed cost remains constant in total and on a per unit basis at various levels of activity. 4.If volume increases, all costs will increase. 5.If.
19 Views
View Answer
Ex. 178 The income statement for Bradford Machine Company for 2015 appears below. BRADFORD MACHINE COMPANY Income Statement For the Year Ended December 31, 2015 —————————————————————————————————————————— Sales (40,000 units).............................................$1,000,000 Variable expenses..............................................     700,000 Contribution margin............................................300,000 Fixed expenses................................................     360,000 Net income (loss)..............................................$    (60,000) Instructions Answer the following independent questions and show computations using the contribution margin technique to support your answers: 1.What was the company's.
18 Views
View Answer
COMPLETION STATEMENTS               183.Process cost systems are used to apply costs to similar products that are ____________ in a ____________ fashion.               184.Separate _________________ accounts are maintained for each production department or manufacturing process in a process cost system.               185.In a process cost system, manufacturing costs are summarized in a ________________ report.
8 Views
View Answer
MATCHING 208.Match the items in the two columns below by entering the appropriate code letter in the space provided.               A.              Activity index              F.              Mixed costs               B.              Variable costs              G.              Break-even point               C.              Fixed costs              H.              Contribution margin               D.              High-low method              I.              Margin of safety               E.              Relevant range             .
10 Views
View Answer
S-A E  199(Communication) Lawrence Leather Goods recently instituted just-in-time management of its inventories. The accounting department carefully modified all its reports to reflect these changes. Required: Prepare a short memo to production department managers, briefly explaining the primary changes they will see on the production cost report. .
8 Views
View Answer
MULTIPLE CHOICE QUESTIONS 38.For an activity base to be useful in cost behavior analysis, a.the activity should always be stated in dollars. b.there should be a correlation between changes in the level of activity and changes in costs. c.the activity should always be stated in terms of units. d.the activity level should be constant over.
17 Views
View Answer
Ex. 174 Henderson Farms reports the following results for the month of November: Sales (10,000 units)$600,000 Variable costs  420,000 Contribution margin180,000 Fixed costs  110,000 Net income$  70,000 Management is considering the following independent courses of action to increase net income. 1.Increase selling price by 5% with no change in total variable costs. 2.Reduce variable costs to 66% of sales. 3.Reduce.
15 Views
View Answer
88.If a company had a contribution margin of $1,000,000 and a contribution margin ratio of 40%, total variable costs must have been a.$1,500,000. b.$600,000. c.$2,500,000. d.$400,000. 89.Which of the following would not be an acceptable way to express contribution margin? a.Sales minus variable costs b.Sales minus unit costs c.Unit selling price minus unit variable costs d.Unit contribution margin divided.
11 Views
View Answer
Ex. 188 Melody Manufacturing produces a hip-hop CD that is sold for $20. The contribution margin ratio is 40%. Fixed expenses total $9,200. Instructions (a)Compute the variable cost per unit. (b)Compute how many CDs Melody Manufacturing will have to sell in order to break even. (c)Compute how many CDs Melody Manufacturing will have to sell.
16 Views
View Answer
BRIEF Exercises BE 157 Dollywood Corporation accumulates the following data concerning a mixed cost, using miles as the activity level. Miles Driven Total Cost Miles Driven Total Cost January 10,000 $16,500 March 9,000 $12,500 February 8,000 $14,500 April 7,000 $12,000 Instructions Compute the variable and fixed cost elements using the high-low method. BE 158 Sandel Company makes 2 products, footballs and baseballs. Additional information follows: FootballsBaseballs Units4,0002,500 Sales$60,000 $25,000 Variable costs36,0007,000 Fixed costs    9,000    9,000 Net income$15,000$ .
10 Views
View Answer
Ex. 187 Erickson, Inc. makes student book bags that sell for $20 each. For the coming year, management expects fixed costs to be $225,000. Variable costs are $14 per unit. Instructions (a)Compute break-even sales in dollars using the mathematical equation. (b)Compute break-even sales using the contribution margin ratio. (c)Compute margin of safety ratio assuming actual.
107 Views
View Answer
Ex. 176 In the month of September, Matlock Industries sold 800 units of product. The average sales price was $30. During the month, fixed costs were $6,300 and variable costs were 70% of sales. Instructions (a)Determine the contribution margin in dollars, per unit, and as a ratio. (b)Using the contribution margin technique, compute the.
13 Views
View Answer
Ex. 182 Romero Company—Perth Division is a new state of the art production facility that manufactures landing gears for airplanes. The September 30th ending work in process is comprised of labor and overhead and is approximately 60% complete. All materials are assumed to be 100% complete. Total materials costs during the.
8 Views
View Answer
98.The following information is available for Wade Corp.: a.gross profit of $190,000. b.contribution margin of $430,000. c.gross profit of $220,000. d.contribution margin of $220,000. 99.Which is the true statement? a.In a CVP income statement, costs and expenses are classified only by function. b.The CVP income statement is prepared for both internal and external use. c.The CVP income statement.
17 Views
View Answer
138.The following monthly data are available for Seasons Company which produces only one product:  Selling price per unit, $42; Unit variable expenses, $14; Total fixed expenses, $42,000; Actual sales for the month of June, 4,000 units. How much is the margin of safety for the company for June? a.$70,000 b.$105,000 c.$63,000 d.$2,500 139.In evaluating the.
9 Views
View Answer
Ex. 182 Norton, Inc. has the following information available for September 2016. Unit selling price of video game consoles$     400 Unit variable costs$     280 Total fixed costs$48,000 Units sold500 Instructions (a)Prepare a CVP income statement that shows both total and per unit amounts. (b)Compute Norton's breakeven in units. Ex. 183 In the month of April, Avante Salon gave 2,500 haircuts,.
12 Views
View Answer
Ex. 185 Gordon Manufacturing earned net income of $100,000 during 2015. The company wants to earn net income of $40,000 more during 2016. The company's fixed costs are expected to be $147,000, and variable costs are expected to be 30% of sales. Instructions (a)Determine the required sales to meet the target net income.
15 Views
View Answer
21.Both variable and fixed costs are included in calculating the contribution margin. 22.The break-even point is where total sales equal total variable costs. 23.The break-even point is where total sales equal total fixed costs. 24.If the unit contribution margin is $1 and unit sales are 10,000 units above the break-even volume, then net.
17 Views
View Answer
Ex. 180 Werth & Garza Manufacturing's sales slumped badly in 2016 due to so many people purchasing gifts online. The company's income statement showed the following results from selling 500,000 units of product: net sales $2,125,000; total costs and expenses $2,500,000; and net loss $375,000. Costs and expenses consisted of the.
9 Views
View Answer
128.Reliable Manufacturing wants to sell a sufficient quantity of products to earn a profit of $100,000. If the unit sales price is $10, unit variable cost is $8, and total fixed costs are $200,000, how many units must be sold to earn income of $100,000? a.150,000 units b.100,000 units c.37,500 units d.1,500,000 units 129.How much.
10 Views
View Answer
Ex. 194 Malone Company had sales in 2014 of $1,600,000 on 80,000 units. Variable costs totaled $960,000, and fixed costs totaled $400,000. A new raw material is available that will decrease the variable costs per unit by 20% (or $2.40). However, to process the new raw material, fixed operating costs will increase.
10 Views
View Answer
78.Portman Company's activity for the first three months of 2016 are as follows: a.$2.00 b.$3.00 c.$2.26 d.$1.78 79.Ponszko Nursery used high-low data from June and July to determine its variable cost of $12 per unit. Additional information follows: a.$8,000 b.$39,600 c.$27,600 d.$35,600 80.In CVP analysis, the term "cost" a.includes only manufacturing costs. b.means cost of goods sold. c.includes manufacturing costs plus selling and.
9 Views
View Answer
Ex. 184 Taveras Industries developed the following information for the product it sells: Sales price$50 per unit Variable cost of goods sold$28 per unit Fixed cost of goods sold$650,000 Variable selling expense10% of sales price Variable administrative expense$2.00 per unit Fixed selling expense$400,000 Fixed administrative expense$300,000 For the year ended December 31, 2016, Taveras produced and sold 100,000 units.
33 Views
View Answer
Ex. 179 Webber, Inc. developed the following information for its product: Per Unit Sales price$90 Variable cost  63 Contribution margin$27 Total fixed costs$1,215,000 Instructions Answer the following independent questions and show computations using the contribution margin technique to support your answers. 1.How many units must be sold to break even? 2.What is the total sales that must be generated for.
10 Views
View Answer
MATCHING 195.Match the items in the two columns below by entering the appropriate code letter in the space provided. A.Total manufacturing cost per unit              E.              Cost reconciliation schedule B.Equivalent units of production              F.              Units transferred out C.Total units accounted for              G.              Unit production costs D.Production cost report              H.              Physical units ____              1.A summary of both production.
10 Views
View Answer
Ex. 181 Henning Co. estimates that variable costs will be 70% of sales and fixed costs will total $2,160,000. The selling price of the product is $10, and 750,000 units will be sold. Instructions Using the mathematical equation, (a)Compute the break-even point in units and dollars. (b)Compute the margin of safety in dollars and as.
8 Views
View Answer
11.A mixed cost has both selling and administrative cost elements. 12.The fixed cost element of a mixed cost is the cost of having a service available. 13.For planning purposes, mixed costs are generally grouped with fixed costs. 14.The difference between the costs at the high and low levels of activity represents the fixed.
17 Views
View Answer
Exercises Ex. 167 Sandburg Manufacturing manufactures a single product. Annual production costs incurred in the manufacturing process are shown below for the production of 2,000 units. The Utilities and Maintenance are mixed costs. The fixed portions of these costs are $300 and $200, respectively.      Costs Incurred       Production in Units   2,000 4,000 Production Costs a.Direct Materials$  6,000? b.Direct Labor16,000? c.Utilities1,000? d.Rent3,000? e.Indirect.
11 Views
View Answer
108.Nelson Manufacturing has the following data: a.$500,000 + .60X = X b.$500,000 + .40X = X c.$500,000 ÷ $500 = X d.$500,000 ÷ .40 = X 109.Boswell company reported the following information for the current year: Sales (50,000 units) $1,000,000, direct materials and direct labor $500,000, other variable costs $50,000, and fixed costs $360,000. What.
12 Views
View Answer
118.Vintage Wines has fixed costs of $20,000 per year. Its warehouse sells wine with variable costs of 80% of its unit selling price. How much in sales does Vintage need to break even per year? a.$16,000 b.$4,000 c.$25,000 d.$100,000 119.Bruno & Court is a nonprofit organization that captures stray deer bewildered within residential communities..
11 Views
View Answer
SHORT-ANSWER ESSAY QUESTIONS S-A E  196 Why do some companies need a cost accounting system while others do not?  What are the determining characteristics or factors that influence the type of cost accounting system that is appropriate for a company? S-A E  197 The production cost report summarizes the activities that have taken place.
9 Views
View Answer
Ex. 168 Bill Braddock is considering opening a Fast ‘n Clean Car Service Center. He estimates that the following costs will be incurred during his first year of operations: Rent $9,200, Depreciation on equipment $7,000, Wages $16,400, Motor oil $2.00 per quart. He estimates that each oil change will require 5.
44 Views
View Answer
Ex. 180 Baker Winery manufactures a fine wine in two departments, Fermenting and Bottling. In the Fermenting Department, grapes are aged in casks for a period of 30 days. In the Bottling Department, the wine is bottled and then sent to the finished goods warehouse. Labor and overhead are incurred uniformly.
13 Views
View Answer
58.Which of the following is not a plausible explanation of why variable costs often behave in a curvilinear fashion? a.Labor specialization b.Overtime wages c.Total variable costs are constant within the relevant range d.Availability of quantity discounts 59.Firms operating at 100% capacity a.are common. b.are the exception rather than the rule. c.have no fixed costs. d.have no variable costs. 60.Which of.
15 Views
View Answer
aEx. 196 Landon Company developed the following information for 2014: Selling and Administrative Expenses Variable$30,000 Fixed$50,000 Units in beginning inventory-0- Units sold26,000 Direct materials used$65,000 Direct labor$105,000 Units produced30,000 Manufacturing overhead Variable$40,000 Fixed$90,000 Instructions Answer the following questions. (a)What would be the amount of the cost of goods sold under the absorption costing approach? (b)What would be the cost of the ending inventory under the variable.
15 Views
View Answer
48.If a firm increases its activity level, a.costs should remain the same. b.most costs will rise. c.no costs will remain the same. d.some costs will change, others will remain the same. 49.The activity that causes changes in the behavior of costs is referred to as the activity a.index. b.multiplier. c.element. d.correlation. 50.Cost activity indexes might help classify costs as a.temporary. b.permanent. c.variable. d.transient. 51.Which of.
22 Views
View Answer
Ex. 172 The Bradshaw Law Office has the following monthly telephone records and costs: Calls  Costs 2,000$2,400 1,5002,000 2,2002,600 2,5002,800 2,3002,700 1,7002,200 Instructions Identify the fixed and variable cost elements using the high-low method. Ex. 173 Determine the missing amounts. Unit contributionContribution Unit Selling PriceUnit Variable CostsMargin              Margin Ratio 1.$300$210AB 2.$600C$210D 3.EF$36030% .
80 Views
View Answer
COMPLETION STATEMENTS               197.Knowledge of cost behavior is important in ______________________ analysis.               198.Unit fixed costs __________________ with the changes in the level of activity.               199.Total fixed costs are ___________ over various levels of activities, whereas total variable costs __________________ directly and ________________ with changes in the activity level.               200.An assumption of.
11 Views
View Answer
S-A E  200(Ethics) Dolly's Dream Homes, Inc. manufactures doll houses in a continuous process. Various customizing features and furnishings are added at the end of the process to create the various models that are sold. The basic design and floor plans of all the houses are identical, however. During the most recent.
12 Views
View Answer
Ex. 179 Mayer Company uses a process cost system. The Molding Department adds materials at the beginning of the process and conversion costs are incurred uniformly throughout the process. Work in process on May 1 was 75% complete and work in process on May 31 was 60% complete. Ex. 179(cont.) Instructions Complete the Production.
14 Views
View Answer

Can't find what you're looking for ?

Ask our exprts a study questions, on us.
Get free Homework Help*