Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Jenco Incorporated's only product is a combination fertilizer-weed killer called Fertikil. Fertikil is sold nationwide through normal marketing channels to retail nurseries and garden stores.Taylor Nursery plans to sell a similar fertilizer weed killer compound through its regional nursery chain under its own private label. Taylor does not have manufacturing facilities of its own, so it has asked Jenco (and several other companies) to submit a bid for manufacturing and delivering a 25,000 pound order of the private brand compound to Taylor. While the chemical composition of the Taylor compound differs from that of Fertikil, the manufacturing processes are very similar.The Taylor compound would be produced in 1.000 pound lots. Each lot would require 30 direct labor-hours and the following chemicals:Chemicals Quantity in PoundsCW-3 400JX-6 300MZ-8 200BE-7 100The first three chemicals (CW-3, JX-6, and MZ-8) are all used in the production of Fertikil. BE-7 was used in another compound that Jenco discontinued several months ago. The supply of BE-7 that Jenco had on hand when the other compound was discontinued was not discarded. Jenco could sell its supply of BE-7 at the prevailing market price less $0.10 per pound selling and handling expenses.Jenco also has on hand a chemical called CN-5, which was manufactured for use in another product that is no longer produced. CN-5, which cannot be used in Fertikil, can be substituted for CW-3 on a one-for-one basis without affecting the quality of the Tavlor compound. The CN-5 in inventory has a salvage value of $500.Inventory and cost data for the chemicals that can be used to produce the Taylor compound are as shown below:Row Material Pounds in Inventory Actual Price/Pound Current Market When Purchased Price/PoundCW-3 22,000 $0.80 $0.90JX-6 5,000 0.55 0.60MZ-8 8,000 1.40 1.60BE-7 4,000 0.60 0.65CN-5 5,500 0.75 (Salvage)The current direct labor rate is $14 per hour. The predetermined overhead rate is based on direct labor-hours (DLH). The predetermined overhead rate for the current year, based on a two-shift capacity of 400,000 total DLH with no overtime, is as follows:Variable manufacturing overhead $ 4.50 per DLHFixed manufacturing overhead 7.50 per DLHCombined rate $12.00 per DLHJenco's production manager reports that the present equipment and facilities are adequate to manufacture the Taylor compound. Therefore, the order would have no effect on total fixed manufacturing overhead costs. However, Jenco is within 400 hours of its two-shift capacity this month. Any additional hours beyond 400 hours must be done in overtime. If need be, the Taylor compound could be produced on regular time by shifting a portion of Fertikil production to overtime. Jenco's rate for overtime hours is 1.5 times the regular pay rate, or $21 per hour. There is no allowance for any overtime premium in the predetermined overhead rate.Required:1. Jenco, has decided to submit a bid for a 25,000 pound order of Taylor Nursery's new compound. The order must be delivered by the end of the current month. Taylor Nursery has indicated that this is a one-time order that will not be repeated. Calculate the lowest price that Jenco could bid for the order without reducing its net operating income.
Differentiate between accounting for restricted funds in nonprofits and governments. Examine some of the possible reasons GASB issued statement 54 clarifying the reporting and classification of funds for governmental accounting.
Donald Corporation owns machinery with a book value of $670,000. It is estimated that the machinery will generate future cash flows of $560,000.
Calculate the number of fresh shares issued and the amount transferred to capital redemption reserve account.
Roberto Corporation was organized on January 1, 2011. The firm was authorized to issue 100,000 shares of $5 par common stock. During 2011 What is total shareholders' equity at the end of 2011?
Flagstaff Department Store had net credit sales of $13,000,000 and cost of goods sold of $10,000,000 for the year. The average inventory for the year amounted to $2,500,000.
Ratzlaff Company issues $2.2 million, 10-year, 8% bonds at 97, with interest payable on July 1 and January 1. Prepare the journal entry to record the sale of these bonds on January 1, 2008
What is the overall completion percentage for the WIP as to direct materials at the end of period?
On December 31 year 1 Todd Corporation issued 500 of its 10% $1,000 bonds at 105. Todd Corporation uses IFRS. The bonds were issued through an underwriter to whom Todd paid bond issue costs of $15,000. On December 31 Year 1 balance sheet Todd shou..
Banks have receivables that are the result of investing activities rather than sale or trade. We call these signed documents notes receivable.
Stanton Company purchased merchandise with an invoice price of $2,000 and credit terms of 1/10, n/30. Assuming a 360 day year, what is the implied annual interest rate inherent in the credit terms?
Many people say that a balance shows the financial position of an entity at a particular point in time. Explain "a particular point in time" and how does this differ from the income statement's time period coverage?
Prepare a cash budget for the Ace Manufacturing Company, indicating receipts and disbursements for May, June, and July. The firm wishes to maintain at all times a minimum cash balance of $20,000.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd