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Chapter 4 Quiz
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CHAPTER 4 - Cost-Volume-Profit Analysis
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Question 6
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The relevant range refers to:
Select one:
a. a particular range of production wherein fixed costs remain constant.
b. a particular range of production where cost behaviour remains the same.
c. a particular range of production where no mixed costs are incurred.
d. a particular range of production where total contribution margin remains the same.
Your answer is incorrect.
Explanation: The relevant range is the range within which cost behaviour remains the same.
The correct answer is: a particular range of production where cost behaviour remains the same.
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Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explanations of
the transaction. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No
Entry" for the account titles and enter O for the amounts.)
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Owner invested $66,500 in exchange for common stock of the corporation.
Hired an employee to be paid $500 per week, starting tomorrow.
Paid two years' rent in advance, $7,100.
Paid the worker's weekly wage.
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Exercise 17-42 (Algo) Taguchi Quality Loss Function (QLF) Analysis [LO 17-4]
Flextronchip, an OEM manufacturer, has a fifth-generation chip for cell phones, with chip specification of 0.2 ± 0.0002 mm for the
distance between two adjacent pins. The loss due to a defective chip has been estimated as $20.
Required:
1. Compute the value of k, the cost coefficient in the Taguchi quality loss function (QLF), L(x) = (x-7)².
2. Assume that the quality control manager takes a sample of 100 chips from the production process. The results are as follows:
Measurement
Frequency
3
0.1996
0.1997
5
0.1998
15
0.1999
14
0.2000
35
0.2001
14
0.2002
6
0.2003
5
0.2004
3
a. & b. Use the appropriate Taguchi quality loss function, L(x), to calculate the estimated quality loss for each of the observed
measurements.…
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Exercise 7-3 (Algo) Allocate costs in a basket purchase (LO7-1)
Cold Stone Bakery purchases land, building, and equipment for a single purchase price of $360,000. However, the estimated fair
values of the land, building, and equipment are $115,000, $253,000, and $92,000, respectively, for a total estimated fair value of
$460,000.
Land
Building
Equipment
Total
Required:
Determine the amounts Cold Stone should record in the separate accounts for the land, the building, and the equipment.
Estimated Fair Value
$
Allocation
Percentage
Saved
%
%
%
+
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Purchase
Prev
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$
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Concord Industries has equivalent units of 7100 for materials and for conversion costs. Total manufacturing costs are $124370. Total
materials costs are $91000. How much is the conversion cost per unit?
O $17.52.
O $4.70.
$12.82.
O $30.33
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The Effect Of Prepaid Taxes On Assets
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13. Goodwill can be recorded
a. When customers keep returning because they are satisfied with the company's products.
b. When the company acquires a good location for its business.
c. When the company has exceptional management.
d.
Only when there is an exchange transaction involving the purchase of an entire
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ESTIMATED PROFIT AND LOSS ACCOUNT (INCOME STATEMENT) FOR KARACHI
TRADERS LTD
$
Revenue (5000 units @ $3.00)
15000
Cost of goods sold (@ $1.00 per unit)
Gross profit
5000
10000
Overhead expenses
4000
Operating profit (profit before tax and interest)
6000
Finance costs (interest)
2000
Profit before tax
4000
Corporation tax @ 20%
Profit for the year
800
3200
Dividends paid
1200
Retained profit
2000
Profit and loss account for Karachi Traders Ltd for the year ending 31 December 2014
20 marks, 40 minutes
1. By amending this profit and loss account (income statement), calculate the new
level of retained profits if the following changes actually occurred:
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Cullumber Co. has the following transactions related to notes receivable during the last 2 months of the year. The company does not make entries to
accrue interest except at December 31.
r.com: 24/7 On-
Tutoring
Nov. 1 Loaned $53,400 cash to C. Bohr on a 12-month, 9% note.
ary Resources
Dec. 11 Sold goods to K. R. Pine, Inc., receiving a $5,400, 90-day, 8% note.
16 Received a $9,600, 180-day, 8% note to settle an open account from A. Murdock.
31 Accrued interest revenue on all notes receivable.
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You deposit $850 in an account paying an annual simple interest rate of 7.8%. Find the future value of the investment (in dollars) after 1 year.
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$ 980,000
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Calculate the amount will be reported for accounts receivable on the statement of financial
position at December 31, 2022.
3. Accounts Receivable on the Statement of Financial Position at December 31, 2022 for
Newton Corp.:
Accounts Receivable is calculated as the cumulative billings to date minus the cumulative
cash collected:
Accounts Receivable at December 31, 2022 = Cumulative Billings- Cumulative Cash
Collected Accounts Receivable at December 31, 2022 = ($1,000,000+ $1,000,000) -
($648,000+ $1,280,000) = $2,000,000 - $1,928,000 = $72,000
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Table of Contents > Week 9: Operational and legal Considerations > Lecture Notes > 09 Operational and Legal Considerations
09 Operational and Legal Considerations -
>
Calculating Capacity
• How many machines do you need?
• You expect your sales to be
3,000,000 granola bars (20g each)
• How large is your plant?
per month
• How many workers do you need?
The machine:
• How much is the investment?
Capacity: 100 kgs per hour
• What are the operating costs?
Requires 2 people to operate it
Takes 8 ft x 40 ft space
• Cost per machine $15,000
Energy and maintenance: $5 per hour
• Cost of material and packaging:
$0.12 per bar
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A process with no beginning work in process, completed and transferred out 85200 units during a period and had 50100 units in the
ending work in process inventory that were 20% complete. The equivalent units of production for the period for conversion costs were:
O 95220 equivalent units.
O 135300 equivalent units.
O 70200 equivalent units.
O 85200 equivalent units.
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Exercises 18-41 (Algo) Allocation of Central Costs; Profit Centers [LO 18-3]
Woodland Hotels Incorporated operates four resorts in the heavily wooded areas of northern California. The resorts are named after
the predominant trees at the resort: Pine Valley, Oak Glen, Mimosa, and Birch Glen. Woodland allocates its central office costs to each
of the four resorts according to the annual revenue the resort generates. For the current year, the central office costs (000s omitted)
were as follows:
Front office personnel (desk, clerks, etc.)
Administrative and executive salaries
Interest on resort purchase
Advertising
Housekeeping
Depreciation on reservations computer
Room maintenance
Carpet-cleaning contract
Contract to repaint rooms
$ 12,100
5,700
4,700
600
3,700
80
1,210
50
570
$ 28,710
Revenue (000s)
Square…
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The following are a series of unrelated situations.
Accounts receivable
A
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Answer the questions relating to each of the five independent situations as requested.
1. Skysong Company's unadjusted trial balance at December 31, 2025, included the following accounts.
Allowance for doubtful accounts
Debit
Bad debt expense for 2025 $
$54,800
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Skysong Company estimates its bad debt expense to be 7% of gross accounts receivable. Determine its bad debt expense for 2025.
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Blondell Legal Services, Limited Liability Company, uses the step-down method to allocate service department costs to operating departments. The firm has two
service departments, Personnel and Information Technology (IT), and two operating departments, Family Law and Corporate Law. Data concerning those
departments follow:
Service Department
Operating Department
Information
:06
Family Law
$ 357,020
Corporate Law
$ 360, 340
Personnel
Technology
Departmental costs
Employees
$ 42,210
12
$ 44,782
25
120
170
12
22
100
152…
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As part of its commitment to quality, the J. J. Borden manufacturing company is proposing to introduce just-in-time (JIT) production
methods. Managers of the company have an intuitive feel regarding the financial benefits associated with a change to JIT, but they
would like to have some data to inform their decision making in this regard. You are provided with the following data:
Item
Manufacturing costs as percentage of sales:
Product-level support
Variable manufacturing overhead
Direct materials
Direct manufacturing labor
Other Financial Data:
Sales revenue
Inventory of WIP
Other Data:
Manufacturing cycle time
Inventory financing costs (per annum)
Required:
Existing Situation
After Adopting JIT
11%
4%
29
11
31
21
23
16
$ 1,385,000
215,000
$ 1,720,000
37,000
60 days
10%
30 days
10%
蒲冰
2
As the…
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Discussion - What is the role of ethics in accounting?
Requirement:
Include Introduction, Body, and Conclusion.
Your initial Discussion posting should be at least 150 words in length.
9 Replies, 9 Unread
Be sure to include a related Title, at least two different citations and references to support your statement
Read and post brief responses to at least two of your classmates' postings (minimum 75 words).
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Exercise 17-44 (Algo) Taguchi Quality Loss Function (QLF) Analysis [LO 17-4]
Duramold specializes in manufacturing molded plastic panels to be fitted on car doors. The blueprint specification for the thickness of
a high-demand model calls for 0.1910 ± 0.0020 inch. It costs $155 to manufacture and $185 to scrap a part that does not meet these
specifications. The thickness measure for the unit just completed is 0.1928 inch.
Required:
1. Use the Taguchi quality loss function, L(x), to determine:
a. The value of the cost coefficient, k. (Do not round intermediate calculations. Round your answer to the nearest whole dollar
amount.)
b. The estimated loss (total quality cost) for the unit just completed, that is, the dollar amount for L(x) where x=0.1928. (Do not round
intermediate calculations. Round…
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Suppose Easton Company reported net receivables of $2,582 million and $2,260 million at January 31,
2019, and 2018, respectively, after subtraction allowances of $72 million and $67 million respectively.
Easton earned total revenue of $43,333 million (all on account) and recorded uncollectible account
expense of $13 million for the year ended January 31, 2019. Use the following T accounts to sort out
your answer.
1. Use this information to measure the following amounts for the year ended January 31, 2019.
a. Write-off of uncollectible receivables.
b. Collection from customers
Allowance for Uncollectible Accounts
D Focus
G
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- Edit View History Bookmarks People Tab Window Help N Academic Tools :: Northern Virgi X 63% Mon 12:07 PM weCS Virginia Community College Syst X N CHAPTER 08 HW NOVA learn.vccs.edu/courses/240149/assignments/4704240?module_item_id=17254910 https://checkout.wileyplus.com/ X des View Policies rse Evaluations Current Attempt in Progress A Policies Cullumber Co. has the following transactions related to notes receivable during the last 2 months of the year. The company does not make entries to accrue interest except at December 31. r.com: 24/7 On- Tutoring Nov. 1 Loaned $53,400 cash to C. Bohr on a 12-month, 9% note. ary Resources Dec. 11 Sold goods to K. R. Pine, Inc., receiving a $5,400, 90-day, 8% note. 16 Received a $9,600, 180-day, 8% note to settle an open account from A. Murdock. 31 Accrued interest revenue on all notes receivable. Journalize the transactions for Cullumber Co. (Omit cost of goods sold entries.) (Credit account titles are automatically indented when amount is entered.…arrow_forwardEat min C e New tab Λ Content xW Quiz 3-MAT-143, section 03F, Fa X + Q A ✩ https://www.webassign.net/web/Student/Assignment-Responses/last?dep=34832472 Viewing Saved Work Revert to Last Response DETAILS MY NOTES You deposit $850 in an account paying an annual simple interest rate of 7.8%. Find the future value of the investment (in dollars) after 1 year. DETAILS MY NOTES Calculate the simple interest due (in dollars) on a 40-day loan of $1,600 if the annual interest rate is 9%. (Use 360 days in 1 year.) $ DETAILS MY NOTESarrow_forward7:27 f t < Session[1].docx - Word ✓ Qo 138 - 21 Paragraph O References Mailings Review View Help BLUEBEAM One day you're going to miss my boring texts ## TO Accessibility: Investigate Search Costs to date Estimated costs to complete Progress billings during the year Cash collected during the year hoher webb ng Normal ||| No Spacing Styles Acrobat 2021 $ 980,000 3,020,000 1,000,000 648,000 Go to website O Heading 1 √ Calculate the amount will be reported for accounts receivable on the statement of financial position at December 31, 2022. 3. Accounts Receivable on the Statement of Financial Position at December 31, 2022 for Newton Corp.: Accounts Receivable is calculated as the cumulative billings to date minus the cumulative cash collected: Accounts Receivable at December 31, 2022 = Cumulative Billings- Cumulative Cash Collected Accounts Receivable at December 31, 2022 = ($1,000,000+ $1,000,000) - ($648,000+ $1,280,000) = $2,000,000 - $1,928,000 = $72,000 Therefore, the amount reported…arrow_forward
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