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!
After Company Y's operating profit report and summary of manufacturing activity for the year has been prepared, you, the chief accountant, learn that $1,000,000 of raw materials were thrown away during the year because the items had spoiled and couldn't be used in the manufacturing process. The company's president knows about this loss and insists that no change be made in the operating profit report and summary of manufacturing activity. Do you go along with the president, or do you argue for changing the operating profit report and summary of manufacturing activity?
Company Y
Company Z
Operating Profit Report for Year
Per Unit
Totals
Sales volume, in Units
500,000
2,000,000
Sales Revenue
$85.00
$42,500,000
$25.00
$50,000,000
Cost of Goods Sold Expense (see below)
-56
-28,000,000
-18.45
-36,900,000
Gross Margin
$29.00
$14,500,000
$6.55
$13,100,000
Variable Operating Expenses
-12.5
-6,250,000
-2.5
-5,000,000
Contribution Margin
$16.50
$8,250,000
$4.05
$8,100,000
Fixed Operating Expenses
-7,500,000
Operating Profit
$3,250,000
$600,000
Manufacturing Activity Summary for Year
Annual Production Capacity, in Units
800,000
2,500,000
Actual Output, in Units
Raw Materials
$15.00
$7,500,000
$7.50
$18,750,000
Direct Labor
20
10,000,000
2.75
6,875,000
Variable Manufacturing Overhead Costs
5
12,500,000
Total Variable Manufacturing Costs
$40.00
$20,000,000
$15.25
$38,125,000
Fixed Manufacturing Overhead Costs
16
8,000,000
3.2
Product Cost and Total Manufacturing Costs
$56.00
$28,000,000
$18.45
$46,125,000
Calculate the overall effects of these transactions on the store's reported income for 2014
Describe four potential problems with a traditional overhead allocation system and describe the differences between unit-related, batch-related, and product-sustaining activities. Give one example of each type of activity.
Kirkaid Company recorded the following transactions for the just completed month. Record the above transactions in journal entries.
Prepare journal entries for the selected transactions related to this company's stock during the current year and prepare a complete statement of cash flows for calendar-year 2011 using the indirect method
Evaluate the predetermined MOH rate per machine hr - Smith paints allocates overhead based on machine hours.
Determine the amount of cash collected during 2012 from sales on credit 2. determine the amount of bad debts expense for 2012
Water Planet is considering purchasing a water park in Atlanta, Georgia, for $1,870,000. The new facility will generate annual net cash inflows of $460,000 for eight years. Engineers estimate that the facility will remain useful for eight years an..
Determine Sagaworth's net cash flow from operating activities for 2011 under the indirect method.
anderson manufacturing makes a single product.nbsp budget information regarding the current period is given
Traceable fixed expenses totaled $216,000 and were allocated as 70 percent to Eastern and 30 percent to Western. Common fixed expenses totaled $295,000.
Classify the following items as investment by owner (I), owner's drawings (D), revenues (R), or expenses (E).Then indicate whether each item increases or decreases owner's equity.
evaluate how the company you selected could best allocate costs to divisions plants departments contracts and or
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