Monthly Archives: August 2013

The Zygon Corporation was recently formed to produce a semiconductor chip that forms an essential part of the personal computer manufactured by a major corporation

ACCOUNTING The Zygon Corporation was recently formed to produce a semiconductor chip that forms an essential part of the personal computer manufactured by a major corporation. The direct materials are added at the start of the production process while conversion … Continue reading

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Speedy Printing manufactures soft cover books. For January, the following information is available

ACCOUNTING Speedy Printing manufactures soft cover books. For January, the following information is available: Budgeted market size (units) 125,000 Budgeted market share 18% Budgeted average contribution margin per unit $1.20 Actual market size (units) 100,000 Actual market share 19% Actual … Continue reading

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Maverick Corporation uses the weighted-average method in its process costing system

ACCOUNTING Maverick Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below. Work in process, beginning: Units in beginning work-in-process inventory 400 Materials costs $6,900 Conversion … Continue reading

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Jael Equipment uses a flexible budget for its indirect manufacturing costs

ACCOUNTING Jael Equipment uses a flexible budget for its indirect manufacturing costs. For 20×4, the company anticipated that it would produce 18,000 units with 3,500 machine-hours and 7,200 employee days. The costs and cost drivers were to be as follows: … Continue reading

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Spirit Company sells three products with the following seasonal sales pattern

ACCOUNTING Spirit Company sells three products with the following seasonal sales pattern: Products Quarter A B C 1 40% 30% 10% 2 30% 20% 40% 3 20% 20% 40% 4 10% 30% 10% The annual sales budget shows forecasts for … Continue reading

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The following information was gathered for Rogers Company for the year ended December 31, 20×4

ACCOUNTING The following information was gathered for Rogers Company for the year ended December 31, 20×4. Budgeted Actual Direct labor-hours 75,000 dlh 77,500 dlh Factory overhead $525,000 $558,000 Assume that direct labor-hours are the cost-allocation base. Required: a. Compute the … Continue reading

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Combs, Inc. reports the following information for September sales

ACCOUNTING Combs, Inc. reports the following information for September sales: Sales $15,000 Variable costs 3,000 Fixed costs 4,000 Operating income $ 8,000 Required: If sales double in October, what is the projected operating income? Click here for the SOLUTION

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Ashley runs a small business in Boulder, Colorado, that makes snow skis

ACCOUNTING Ashley runs a small business in Boulder, Colorado, that makes snow skis. She expects the business to grow substantially over the next three years. Because she is concerned about their product liability and is planning to take the company … Continue reading

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Palmer, Inc. has a net operating loss carryforward of $100,000

ACCOUNTING Palmer, Inc. has a net operating loss carryforward of $100,000. If Palmer continues its business with no changes, it will have $50,000 of taxable income (before the NOL) in both 2013 and 2014. If Palmer decides to invest in … Continue reading

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Gagliano is introducing a new product using either a capital-intensive method or a labor-intensive method, which will not affect the quality of the product

ACCOUNTING Gagliano is introducing a new product using either a capital-intensive method or a labor-intensive method, which will not affect the quality of the product. Estimated manufacturing costs as follows: Capital-Intensive Direct Materials $5/unit Direct Labor $6/unit Variable Overhead $3/unit … Continue reading

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