Required Information [The following information applies to the questions displayed below.] In the audit of Western Mills, the auditors wish to test the costs assigned to manufactured goods. During the year, the company has produced 2,000 production lots with a total recorded cost of $5.9 million. The auditors select a sample of 200 production lots with an aggregate book value of $600,000 and vouch the assigned costs to the supporting documentation. Their audit discloses misstatements in the cost of 52 of the 200 production lots; after adjustment for these misstatements, the audited value of the sample is $582,000. Required: Show how the auditors would compute an estimate of the total cost of production lots manufactured during the year using each a following sampling plans. (Do not compute the allowance for sampling risk or the risk of incorrect acceptance of the estimates.) (1) Mean-per-unit estimation. (2) Ratio estimation. (3) Difference estimation. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Mean-per-unit estimation. Estimated population mean Estimated total audited value Required 1 Required 2 > < Prev 3 of 3 Next Question no....pages

Required Information [The following information applies to the questions displayed below.] In the audit of Western Mills, the auditors wish to test the costs assigned to manufactured goods. During the year, the company has produced 2,000 production lots with a total recorded cost of $5.9 million. The auditors select a sample of 200 production lots with an aggregate book value of $600,000 and vouch the assigned costs to the supporting documentation. Their audit discloses misstatements in the cost of 52 of the 200 production lots; after adjustment for these misstatements, the audited value of the sample is $582,000. Required: Show how the auditors would compute an estimate of the total cost of production lots manufactured during the year using each a following sampling plans. (Do not compute the allowance for sampling risk or the risk of incorrect acceptance of the estimates.) (1) Mean-per-unit estimation. (2) Ratio estimation. (3) Difference estimation. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Mean-per-unit estimation. Estimated population mean Estimated total audited value Required 1 Required 2 > < Prev 3 of 3 Next Question no....pages

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Jeremy Costa, owner of Costa Cabinets Inc., is preparing a bid on a job that requires $2,160 of direct materials, $2,160 of direct labor, and $1,080 of overhead. Jeremy normally applies a standard markup based on cost of goods sold to arrive at an initial bid price. He then adjusts the price as necessary in light of other factors (e.g., competitive pressure) Last year's income statement is as follows: Sales Cost of goods sold Gross margin Selling and administrative expenses Operating income Required: $136,500 77,805 $58,695 46,300 $12,395 1. Calculate the markup that Jeremy will use. Round your answer to one decimal place. 75 X % 2. What is Jeremy's initial bid price? Round your answer to the nearest dollar. Feedback ✓ Check My Work 1. Markup Percentage = Gross margin/Cost of Goods Sold 2. Add costs, Direct Material, Direct Labor and Overhead. Price using Markup = Cost per Unit+ (Cost per Unit x Markup Percentage)
AX27912 company is a highly automated manufacturer. At an activity level of 5,200 units, the company's total quality control cost equal $186,000. This amount includes equipment lease cost of $50,000 (all fixed) and manual inspection cost of $62,400 (all variable). The remaining $73,600 of the total quality control cost consists of electronic testing (mixed). At an activity level of 7,200 units, electronic testing cost totals $89,600. Assume that the relevant range includes all of the activity levels mentioned in this problem for the AX27912 company. If 6,000 units are projected for the next period, how much would the total expected quality control cost be? Multiple Choice $226,000 $202,000 $130,000 10 of 12 Next > < Prev
Diane Buswell examined some of the accounting records and reported that Current Designs purchased 1,190 pounds of polyethylene powder for this order at a total cost of $2,023. Twenty (20) finishing kits were assembled at a total cost of $3,220. The payroll records showed that the type I employees worked 56 hours on this project at a total cost of $784. The type Il finishing employees worked 87 hours at a total cost of $978.75. A total of 20 kayaks were produced for this order. The standards that had been developed for this model of kayak were used in CD2 and are reproduced here. For each kayak: 52 pounds of polyethylene powder at $1.50 per pound 1 finishing kit (rope, seat, hardware, etc.) at $168 3 hours of type I labor from people who run the oven and trim the plastic at a standard wage rate of $14 per hour 4 hours of type Il labor from people who attach the hatches and seat and other hardware at a standard wage rate of $11 per hour. Calculate the eight variances that are listed…
I need requirement A-C please.
Harshman Company constructed a building for its own use. The company incurred costs of $45,000 for materials and supplies, $64,000 for direct labor, and $5,000 for a supervisor's overtime that was caused by the construction. Harshman uses a factory overhead rate of 50% of direct labor cost. Before construction, the company had received a bid of $159,000 from an outside contractor. 1. Assuming common practice is followed, at what value should Harshman capitalize the building? 2. The cost of the constructed asset will more closely approximate the cost of an equivalent purchased asset when the approach is used.
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Roen Company incurred an activity cost of $117,300 for inspecting 46,000 units of production. Management determined that the inspecting objectives could be met without inspecting every unit. Therefore, rather than inspecting 46,000 units of production, the inspection activity was limited to a random selection of 4,600 units out of the 46,000 units of production. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. Open spreadsheet Determine the inspection activity cost per unit on 46,000 units of total production both before and after the improvement. Do not round intermediate calculations. If required, round per unit amounts to the nearest cent. Inspection activity before improvement: $ per unit Inspection activity after improvement: $ per unit
Cory purchased and consumed 50,000 gallons of direct material that was used in the production of 11,000 finished units of product. According to engineering specifications, each finished unit had a manufacturing standard of five gallons. If a review of Cory's accounting records at the end of the period disclosed a material price variance of P5,000U and a material quantity variance of P3,000F, determine the actual price paid for a gallon of direct material.
Do you agree with the following statements? Check only those with which you agree. Choose All That Apply At the end of the period, the balance remaining in Work in Process is carried forward to the next period.At the end of the period, the balance remaining in Work in Process is carried forward to the next period. Burgess Company incurred costs of $50,000 to manufacture products during the period when no units were sold. No period costs will be reported in this regard on the company's income statement for the period. Burgess Company incurred costs of $50,000 to manufacture products during the period when no units were sold. No period costs will be reported in this regard on the company's income statement for the period. Only manufacturing companies use a predetermined overhead application rate; such rates are not used by service companies.Only manufacturing companies use a predetermined overhead application rate; such rates are not used by service companies. Service…
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44. The design for the new electric car had been approved by the board and production was underway, but the VP of Manufacturing was nervous about the rate of defective parts from suppliers. See the screenshot below. If he chose to construct a pivot table to present the number of defects by subassembly name by month, which fields should appear in the Rows, Columns, and Values areas of the pivot table? Assume the three columns of the dataset have been named Subassembly_Name, Month, and Defects. 1 Subassembly Name 2 Master Cylinder 3 Master Cylinder 4 Wheel Hub 5 6 LED Assembly 7 LED Assembly 8 Airbag 9 Airbag 10 Cockpit Monitor 11 Airbag 12 Master Cylinder 13 Airbag 14 Airbag Master Cylinder 15 Airbag 16 Cockpit Monitor 17 Locking System 18 Master Cylinder 19 Locking System 20 Locking System 21 LED Assembly 22 Locking System 23 Cockpit Monitor 24 Locking System 25 Airbag 26 Wheel Hub Month May Feb March Jan June March Jan June April May June March June March Feb Feb June March Feb Feb…