FUND OF ACCT PRIN(LOOSE-LEAF)+ACCESS
25th Edition
ISBN: 9781264753277
Author: Wild
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 19, Problem 10DQ
Assume that Apple produces a batch of 1,000 iPhones. Does it account for this as 1,000 individual jobs or as a job lot? Explain (consider costs and benefits).
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Suppose the smartphone manufacturer Peony Electronics provides the following information for its costs last month (in millions):
(Click the icon to view the costs.)
Read the requirements.
Requirements 1, 2 and 3. Classify each of these costs according to its place in the value chain. Within the production category, break the costs down further into three subcategories: Direct Materials, Direct Labor, and
Manufacturing Overhead. Then calculate the total cost for each value chain category. (Enter amounts in millions. If an input field is not used in the table, leave the input field empty; do not enter a zero.)
Cost
Delivery expense
Salaries of salespeople
Chipset
Exterior case for phone
Assembly-line workers'
wages
Technical support hotline
Depreciation on plant and
equipment
Rearrange production
process
1-800 (toll-free) line for
customer orders
Scientists' salaries
Total costs
Cost
R and D
$ 14
Peony Electronics
Value Chain Cost Classification
Direct
Design Materials
LA
60
5
$…
A small company manufactures a certain item and sells it online. The company has a business model where the cost, C in dollars, to make x items is given by the equation C = 20/3 x + 50. The revenue R , in dollars , made by selling x items is given by the equation R = 10x. How many items must the company sell in order for the cost to equal their revenue?
The Borstal Company has to choose between two machines that do the same job but have different lives. The two machines have the
following costs:
Year
Machine A
Machine B
0
$ 49,000
$ 59,000
1
11,800
11,600
2
11,800
11,600
3
11,800+ replace
11,600
4
11,600 replace
These costs are expressed in real terms.
a. Suppose you are Borstal's financial manager. If you had to buy one or the other machine and rent it to the production manager
for that machine's economic life, what annual rental payment would you have to charge? Assume a 12% real discount rate and
ignore taxes.
Note: Do not round intermediate calculations. Enter your answers as a positive value rounded to 2 decimal places.
b. Which machine should Borstal buy?
c. If there is steady 6% per year inflation, what will be the annual rental payment for machine B for the second year?
Note: Enter your answer as a positive value rounded to 2 decimal places.
a. Machine A
a. Machine B
b. Which machine should Borstal buy?
c. Year 2 rental…
Chapter 19 Solutions
FUND OF ACCT PRIN(LOOSE-LEAF)+ACCESS
Ch. 19 - Jobs and job lots C1 Determine which of the...Ch. 19 - Job cost sheets C2 Clemens Cars's job cost sheet...Ch. 19 - Documents in job order costing P1 P2 P3 The left...Ch. 19 - Raw materials journal entries P1 During the...Ch. 19 - Prob. 5QSCh. 19 - Prob. 6QSCh. 19 - Prob. 7QSCh. 19 - Prob. 8QSCh. 19 - Prob. 9QSCh. 19 - Prob. 10QS
Ch. 19 - Prob. 11QSCh. 19 - Prob. 12QSCh. 19 - Jab order costing of services A1 An advertising...Ch. 19 - Job order costing of services A1 An advertising...Ch. 19 - Job cost sheet C2 Eco Skate makes skateboards from...Ch. 19 - Prob. 16QSCh. 19 - Prob. 17QSCh. 19 - Prob. 18QSCh. 19 - Prob. 19QSCh. 19 - Prob. 20QSCh. 19 - Prob. 21QSCh. 19 - Prob. 22QSCh. 19 - Prob. 23QSCh. 19 - Prob. 24QSCh. 19 - Exercise 19-1 Job order production C1 Match each...Ch. 19 - Exercise 19-2 Job cost computation C2 The...Ch. 19 - Exercise 19-3 Analysis of cost flows C2 As of the...Ch. 19 - Exercise 19-4 Recording product costs P1 P2 P3...Ch. 19 - Exercise 19-5 Manufacturing cost flows P1 P2 P3...Ch. 19 - Exercise 19-6 Recording events in job order...Ch. 19 - Exercise 19-7 Cost flows in a jab order costing...Ch. 19 - Exercise 19-8 Journal entries for materials P1 Use...Ch. 19 - Exercise 19-9 Journal entries for labor P2 Use...Ch. 19 - Exercise 19-10 Journal entries for overhead P3 Use...Ch. 19 - Exercise 19-11 Overhead rate; costs assigned to...Ch. 19 - Exercise 19-12 Analyzing costs assigned to work in...Ch. 19 - Exercise 19-13 Adjusting factory overhead P4 Refer...Ch. 19 - Exercise 19-14 Adjusting factory overhead P4...Ch. 19 - Prob. 15ECh. 19 - Prob. 16ECh. 19 - Exercise 19-17 Overhead rate calculation,...Ch. 19 - Exercise 19-18 Job order costing for services A1...Ch. 19 - Exercise 19-19 Job order costing of services A1...Ch. 19 - Exercise 19-20 Direct materials journal entries P1...Ch. 19 - Prob. 21ECh. 19 - Prob. 22ECh. 19 - Prob. 23ECh. 19 - Prob. 24ECh. 19 - Prob. 25ECh. 19 - Prob. 26ECh. 19 - Prob. 27ECh. 19 - Prob. 28ECh. 19 - Prob. 29ECh. 19 - Prob. 30ECh. 19 - Prob. 31ECh. 19 - Problem 19-1A Production costs computed and...Ch. 19 - Problem 19-2 A Source documents, journal entries,...Ch. 19 - Prob. 3PSACh. 19 - Prob. 4PSACh. 19 - Problem 19-5A Production transactions, subsidiary...Ch. 19 - Problem 19-1B Production costs computed and...Ch. 19 - Prob. 2PSBCh. 19 - Prob. 3PSBCh. 19 - Problem 19-4B Overhead allocation and adjustment...Ch. 19 - Problem 19-5B Production transactions, subsidiary...Ch. 19 - The computer workstation furniture manufacturing...Ch. 19 - The General Ledger tool in Connect automates...Ch. 19 - Manufacturers and merchandisers can apply...Ch. 19 - Prob. 2AACh. 19 - Apple and Samsung compete in the global...Ch. 19 - Prob. 1DQCh. 19 - Some companies use labor cost to apply factory...Ch. 19 - Prob. 3DQCh. 19 - In a job order costing system, what records serve...Ch. 19 - What journal entry is recorded when a materials...Ch. 19 - Prob. 6DQCh. 19 - Google uses a "time ticket" for some employees....Ch. 19 - What events cause debits to be recorded in the...Ch. 19 - Prob. 9DQCh. 19 - Assume that Apple produces a batch of 1,000...Ch. 19 - 11. Why must a company use predetermined overhead...Ch. 19 - How would a hospital apply job order costing?...Ch. 19 - Harley-Davidson manufactures 30 custom-made,...Ch. 19 - Prob. 14DQCh. 19 - Prob. 15DQCh. 19 - Assume that your company sells portable housing to...Ch. 19 - Assume that you are preparing for a second...Ch. 19 - Prob. 3BTNCh. 19 - Consider the activities undertaken by a medical...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Consider a production process where flowers are grown (the output) using gardeners (labor) and greenhouses (capital). The quantity of flowers grown per day with various combinations of labor and capital are shown in the table below. Suppose that each gardener is paid $220 per day and the greenhouse is rented for $500 per day. Fill in total cost in the table below. (Enter your responses as integers.) Labor Capital Output Total Cost 0 1 0 $nothing 1 1 80 nothing 2 1 240 nothing 3 1 320 nothing 4 1 360 nothing 5 1 380 nothingarrow_forwardThe Borstal Company has to choose between two machines that do the same job but have different lives. The two machines have the following costs: Year Machine A Machine B $51,000 0 $41,000 1 10,200 8,400 2 10,200 8,400 3 10,200+ replace 8,400 4 8,400 + replace These costs are expressed in real terms. a. Suppose you are Borstal's financial manager. If you had to buy one or the other machine and rent it to the production manager for that machine's economic life, what annual rental payment would you have to charge? Assume a 8% real discount rate and ignore taxes. (Do not round intermediate calculations. Enter your answers as a positive value rounded to 2 decimal places.) Answer is complete but not entirely correct. Annual Rental Payment Machine A $ 25,108.00 Machine B $ 24,561.00 > b. Which machine should Borstal buy? Machine A Machine Barrow_forwardAssume Samsung and Apple are bidding on a large device support service job for a U.S.-based business. Samsung estimates direct labor for this service job to include 800 phone support hours and 1,200 technical specialist hours. Samsung pays phone support staff $11 per hour and technical specialists $22 per hour. Overhead is applied using a rate of $24 per direct labor hour (for both types of labor). For Samsung, what is this job’s estimated total cost? Samsung believes that the customer will choose the company that offers the lower price. If Samsung applies a markup of 30% on total cost, will its quoted price be lower than Apple’s expected quoted price of $105,000?arrow_forward
- Pharoah Enterprises is considering manufacturing a new product. It projects the cost of direct materials and rent for a range of output as follows. Output in Units 1,000 2,000 Rent Cost $6,940 6,940 3,000 11,104 4,000 11,104 8,000 5,000 11,104 6,000 11,104 7,000 11,104 11,104 9,000 13,880 10,000 13,880 11,000 13,880 Direct Materials $5,550 6,000 6,000 8,000 10,000 12,000 14,000 16,000 40,668 48,580 61,072arrow_forwardIf the plant manager uses the average cost per unit to predict total costs, what would the forecast be for 1,900 mailboxes? 5. If the plant manager uses the cost equation to predict total costs, what would the forecast be for 1,900 mailboxes? 6. What is the dollar difference between your answers to questions 4 and 5? Which approach to forecasting costs is appropriate? Why?arrow_forwardPlease answer fast i give you upvote.arrow_forward
- Solve a Related Rates Problem. A technical support contracting firm hires people to work from home using their proprietary support scripting system. The more employess they have, the more contracts they can support and therefore the more revenue they can generate. Suppose that the company's revenue and number of employees is related by R² = 297x³, where is R is the revenue in thousands of USD anda is the number of employees in hundreds. If there is no shortage of work to be done, the company currently has 3300 employees, and the company wants to increase their revenue from $3,267,000.00 this year to $5,643,000.00 next year, how many new employees should be hired in order to make that possible? The company should hire new employees before next year. Preview My Answers Submit Answers harrow_forwardSolve the problem. 6) At a manufacturing plant, the total cost (in dollars) to produce x items is C(x) = 2.04x + 2710. What is the average cost per item?arrow_forwardRequirements 1. 2. 3. 4. What is the total cost of producing 1,200 mailboxes? If $18,516 of the total costs are fixed, what is the variable cost of producing each mailbox? Write Branson Mailbox's cost equation. If the plant manager uses the average cost per unit to predict total costs, what would the forecast be for 1,500 mailboxes? 5. If the plant manager uses the cost equation to predict total costs, what would the forecast be for 1,500 mailboxes? 6. What is the dollar difference between your answers to questions 4 and 5? Which approach to forecasting costs is appropriate? Why?arrow_forward
- The Borstal Company has to choose between two machines that do the same job but have different lives. The two machines have the following costs: Year Machine A 0 OLN3+ 1 2 4 $48,000 11,600 11,600 11,600 + replace Machine A Machine B These costs are expressed in real terms. a. Suppose you are Borstal's financial manager. If you had to buy one or the other machine and rent it to the production manager for that machine's economic life, what annual rental payment would you have to charge? Assume a 12% real discount rate and ignore taxes. (Do not round intermediate calculations. Enter your answers as a positive value rounded to 2 decimal places.) Machine B $58,000 11,200 11, 200 11,200 11,200 + replace Annual Rental Paymentarrow_forwardThe Borstal Company has to choose between two machines that do the same job but have different lives. The two machines have the following costs: Year Machine A $48,000 11,600 11,600 11,600+ replace OLZ3+ 0 1 2 4 Machine A Machine B Machine B $58,000 Annual Rental Payment 11, 200 11, 200 These costs are expressed in real terms. a. Suppose you are Borstal's financial manager. If you had to buy one or the other machine and rent it to the production manager for that machine's economic life, what annual rental payment would you have to charge? Assume a 12% real discount rate and ignore taxes. (Do not round intermediate calculations. Enter your answers as a positive value rounded to 2 decimal places.) 11,200 11,200 replacearrow_forwardKelson Sporting Equipment, Inc., makes two types of baseball gloves: a regular model and a catchers model. The firm has 900 hours of production time available in its cutting and sewing department, 300 hours available in its finishing department, and 100 hours available in its packaging and shipping department. The production time requirements and the profit contribution per glove are given in the following table: Assuming that the company is interested in maximizing the total profit contribution, answer the following: a. What is the linear programming model for this problem? b. Develop a spreadsheet model and find the optimal solution using Excel Solver. How many of each model should Kelson manufacture? c. What is the total profit contribution Kelson can earn with the optimal production quantities? d. How many hours of production time will be scheduled in each department? e. What is the slack time in each department?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Essentials of Business Analytics (MindTap Course ...StatisticsISBN:9781305627734Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. AndersonPublisher:Cengage Learning
Essentials of Business Analytics (MindTap Course ...
Statistics
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Cengage Learning
Cost control, Why cost control is necessary for a business?; Author: Educationleaves;https://www.youtube.com/watch?v=yMg3gJx48Fg;License: Standard youtube license