C06

9-105-081 REV: SEPTEMBER 1, 2005    DAVID F. HAWKINS  ROBERT S. KAPLAN  GREGORY S. MILLER    Accounting at MacCloud Winery Mike MacCloud had worked in the operations side of a winery for several years. Having built a strong knowledge of the art of making wine, he had decided to create his own wine label (i.e., brand).  For his label, he planned to grow all of his own grapes. He had identified an ideal plot of five acres of land in northern California that had most recently been used to grow soybeans. His initial plans were to lease a nearby building to use as a winery (i.e., a place for processing grapes and fermenting and aging his wine). However, Mike hoped someday to build his own winery and thus would only plant on four acres of land. Mike agreed to lease the building for 10 years at $5,000 per year. It was estimated that the building was worth $32,000 and had a 30-year economic life. The lease contract Mike signed did not mention any bargain purchase option or that Mike might…

9-105-081 REV: SEPTEMBER 1, 2005    DAVID F. HAWKINS  ROBERT S. KAPLAN  GREGORY S. MILLER    Accounting at MacCloud Winery Mike MacCloud had worked in the operations side of a winery for several years. Having built a strong knowledge of the art of making wine, he had decided to create his own wine label (i.e., brand).  For his label, he planned to grow all of his own grapes. He had identified an ideal plot of five acres of land in northern California that had most recently been used to grow soybeans. His initial plans were to lease a nearby building to use as a winery (i.e., a place for processing grapes and fermenting and aging his wine). However, Mike hoped someday to build his own winery and thus would only plant on four acres of land. Mike agreed to lease the building for 10 years at $5,000 per year. It was estimated that the building was worth $32,000 and had a 30-year economic life. The lease contract Mike signed did not mention any bargain purchase option or that Mike might…

9-105-081 REV: SEPTEMBER 1, 2005    DAVID F. HAWKINS  ROBERT S. KAPLAN  GREGORY S. MILLER    Accounting at MacCloud Winery Mike MacCloud had worked in the operations side of a winery for several years. Having built a strong knowledge of the art of making wine, he had decided to create his own wine label (i.e., brand).  For his label, he planned to grow all of his own grapes. He had identified an ideal plot of five acres of land in northern California that had most recently been used to grow soybeans. His initial plans were to lease a nearby building to use as a winery (i.e., a place for processing grapes and fermenting and aging his wine). However, Mike hoped someday to build his own winery and thus would only plant on four acres of land. Mike agreed to lease the building for 10 years at $5,000 per year. It was estimated that the building was worth $32,000 and had a 30-year economic life. The lease contract Mike signed did not mention any bargain purchase option or that Mike might…

9-105-081 REV: SEPTEMBER 1, 2005    DAVID F. HAWKINS  ROBERT S. KAPLAN  GREGORY S. MILLER    Accounting at MacCloud Winery Mike MacCloud had worked in the operations side of a winery for several years. Having built a strong knowledge of the art of making wine, he had decided to create his own wine label (i.e., brand).  For his label, he planned to grow all of his own grapes. He had identified an ideal plot of five acres of land in northern California that had most recently been used to grow soybeans. His initial plans were to lease a nearby building to use as a winery (i.e., a place for processing grapes and fermenting and aging his wine). However, Mike hoped someday to build his own winery and thus would only plant on four acres of land. Mike agreed to lease the building for 10 years at $5,000 per year. It was estimated that the building was worth $32,000 and had a 30-year economic life. The lease contract Mike signed did not mention any bargain purchase option or that Mike might…

Chapter 3 Pg. 282 Please read the following information and respond to my question at the bottom thoroughly and clearly. Thanks This is the FIFO method.  The DM is grapes used to make wine for a vineyard. Beginning Inventory of grapes was 200 and 1800 were added during the current period.  The ending inventory was 400 and the conversion completion rate was 60%.  The number of units completed were 1,600. When using the following formulas why  do we come up with the number 1400, when the total amount of is 2000? Unties Completed-Units in Beginning Inventory=Units Started and Completed   Units Started-Units in Ending Inventory=Units Started and Completed So we have the following: 1600-200=1400 (Why are we deducting the beginning DM from the 1,600 added DM during the current period?)

Customer Latitude and Pricing Maria Lorenzi owns an ice cream stand that she operates during the summer months in West Yellowstone, Montana. She is unsure how to price her ice cream cones and has experimented with two prices in successive weeks during the busy August season. The number of people who entered the store was roughly the same each week. During the first week, she priced the cones at $3.50 and 1,800 cones were sold. During the second week, she priced the cones at $4.00 and 1,400 cones were sold. The variable cost of a cone is $0.80 and consists solely of the costs of the ice cream and the cone itself. The fixed expenses of the ice cream stand are $2,675 per week. Required: 1. What profit did Maria earn during the first week when her price was $3.50? 2. At the start of the second week, Maria increased her selling price by what percentage? What percentage did unit sales decrease? (Round your answers to one-tenth of a percent.) 3. What profit did Maria earn during the second…

Comprehensive Problem 5 Part B: Note: This section is a continuation from Part A of the comprehensive problem. Be sure you have completed Part A before attempting Part B. You may have to refer back to data presented in Part A and use answers from Part A when completing this section. Genuine Spice Inc. began operations on January 1 of the current year. The company produces eight- ounce bottles of hand and body lotion called Eternal Beauty. The lotion is sold wholesale in 12-bottle cases for $100 per case. There is a selling commission of $20 per case. The January direct materials, direct labor, and factory overhead costs are as follows: DIRECT MATERIALS   Cost Behavior Units per Case Cost per Unit Direct Materials Cost per Case Cream base Variable 100 ozs. $0.02   $2.00   Natural oils Variable 30 ozs. 0.30   9.00   Bottle (8-oz.) Variable 12 bottles 0.50   6.00             $17.00   DIRECT LABOR Department Cost Behavior Time per Case Labor Rate per Hour Direct…

View Policies Current Attempt in Progress E-Flix rents DVDS that are mailed out to customers upon demand. E-Flix has identified three activities involved in getting the videos to its customers. Information on those activities for the month of July follows: Estimated Expected Use of Cost Drivers Cost Pools Cost Drivers Overhead Cost Order taking costs Number of orders $20,592 187,200 orders Technology support Number of minutes $11,700 234,000 minutes Picking and shipping Number of DVDS $39,624 330,200 DVDS costs During July, the Tucker family placed 17 orders consisting of 21 DVDs. Tucker required 7 minutes of tech support. Customers pay $9.00 per month to rent unlimited DVDS. Using ABC, how much overhead is applied to the Tucker family account for order taking costs? O $4.74 O $2.52 O $1.871 O $6.45 Submit Answer Save for Later Attempts: 0 of 1 used 2:27 PM 10/13/20 e

Before you begin this assignment review the Tying It All Together feature in the chapter. Best Buy Co., Inc. is a leading provider of technology products. Customers can shop at more than 1,700 stores or online. The company is also known for its Geek Squad for technology services. Suppose Best Buy is considering a particular HDTV for a major sales item for Black Friday, the day after Thanksgiving, known as one of the busiest shopping days of the year. Assume the HDTV has a regular sales price of $900, a cost of $500, and a Black Friday proposed discounted sales price of $650. Best Buy’s 2015 Annual Report states that failure to manage costs could have a material adverse effect on its profitability and that certain elements in its cost structure are largely fixed in nature. Best Buy, like most companies, wishes to maintain price competitiveness while achieving acceptable levels of profitability. (Item 1A. Risk Factors.) Requirements Calculate the gross profit of the HDTV at the regular…

Each morning, Mike Root stocks the drink case at Mike's Beach Hut in Myrtle Beach, South Carolina. The drink case has 90 linear feet of refrigerated drink space. Each linear foot can hold either seven 12-ounce cans or three 20-ounce bottles. View the information on the cold drinks. MikeBeach Hut can sell all the drinks stocked in the display case each morning. Read the requirements. - X Requirement 1. What is Mike's Beach Hut's constraining factor? What should Mike's Beach Hut stock to maximize profits? The constraining factor is linear feet of shelf space What should Mike's Beach Hut stock to maximize profits? Complete the product mix analysis to determine which product would maximize Mike's Beach Hut's profits. Yummy Time 12 oz. Cans Yummy Time 20 oz. Bottles Pretty Pop 20 oz. Bottles Sales price per unit Variable cost per unit Contribution margin per unit Units per linear foot of shelf space Contribution margin per linear foot of shelf space Cold Drinks Information Mike's Beach Hut…

Dawson Co. produces wine. Dawson purchases empty glass bottles from an outside vendor. The company expects:   Production 2,535,000 two-liter bottles of Chablis       Target ending inventory 77,000 glass bottles       Beginning inventory 54,000 glass bottles       For simplicity, ignore breakage.           Compute the number of bottles to be purchased in 2018.

Each morning, Joel McKnight stocks the drink case at Joel's Beach Hut in Myrtle Beach, South Carolina. The drink case has 105 linear feet of refrigerated drink space. Each linear foot can hold either six 12-ounce cans or three 20-ounce bottles. (Click the icon to view the information on the cold drinks.) Joel's Beach Hut can sell all the drinks stocked in the display case each morning. Read the requirements. Requirements Print C 1. What is Joel's Beach Hut's constraining factor? What should Joel stock to maximize profits? 2. Suppose Joel's Beach Hut refuses to devote more than 65 linear feet to any individual product. Under this condition, how many linear feet of each drink should Joel's stock? How many units of each product will be available for sale each day? Done - X Data table Joel's Beach Hut sells three types of cold drinks: 1. ToBe in 12-oz. cans for $1.65 per can 2. ToBe in 20-oz. bottles for $1.90 per bottle 3. Value - Soda in 20-oz. bottles for $2.45 per bottle Joel's Beach…

Module 6 - Excel Lab Data Sheet Exercise 15.1 Barnaby's Hideaway uses Jim Beam Bourbon to prepare its Manhattans. A 1-litre bottle of Jim Beam costs $12.50. It also uses Martini & Rossi sweet vermouth at $6.60 per litre in the drink. Compute the cost per ounce for the liquor and the vermouth. Exercise 15.2 Complete the Standard Recipe detail and cost card for a Manhattan using the values from 15.1. The sales price of the drink is $4.50 Exercise 15.3 Barnaby's Hideaway uses Smirnoff vodka to prepare its Vodka Martinis. A 1-litre bottle of Smirnoff costs $15.00. The recipe calls for dry vermouth, which costs $8.00 per litre. Compute the cost per ounce for the liquor and the vermouth. Exercise 15.4 Complete the Standard Recipe detail and cost card for a vodka martini using the values from 15.3. The sales price of the drink is $4.50