Managerial Accounting



Item Name

Assume Paper Mate is planning to introduce a new executive

Assume Paper Mate is planning to introduce a new executive pen that can be manufactured using either a Paper Mate capital-intensive method or a labor-intensive method. The predicted manufacturing costs for each method are as follows: Paper Mate's market research department has recommended an introductory unit sales price of $30. The incremental selling costs are predicted to be $500,000 per year,...

Assume that Black & Decker Company, concerned about competitive

Assume that Black & Decker Company, concerned about competitive pressures, implemented a program in 2009 to reduce inventory levels, improve productivity, improve on-time delivery of goods to customers, and reduce customer complaints about quality. To help evaluate the success of these efforts, management requested a quality cost report for the year ended December 31, 2009. After a detailed...

Assume that Casio Computer Company. LTD. sells handheld communic

Assume that Casio Computer Company. LTD. sells handheld communication devices for $110 during August as a back-to-school special. The normal selling price is $150. The standard variable cost for each device is $70. Sales for August had been budgeted for 400,000 units nationwide; however, due to the slowdown in the economy, sales were only 350,000. Required Compute the revenue, sales price, sales...

Assume that Datek, a leader in on-line stock trading, is

Assume that Datek, a leader in on-line stock trading, is preparing for a surge in growth with a new set of stock trading fees. The following information is available: With the new fees, Datek expects to take many big-volume traders from its competitors. Anticipated monthly growth is expected to be 10 percent, 20 percent, and 30 percent, respectively, for each category for the first three months...

Assume that GE Capital, a division of General Electric, has

Assume that GE Capital, a division of General Electric, has been displeased with the costs of servicing its consumer loans. Assume that it has decided to implement a Kaizen-based cost improvement program. For 2009, GE Capital incurred the following costs: Loan processing ……………………………….. $14,500,000 Customer relations …………………………….. 3,500,000 Printing,...

Assume that Goodrich Corporation is evaluating a capital expendi

Assume that Goodrich Corporation is evaluating a capital expenditure proposal that has the following predicted cash flows: Initial investment …………………………………….. $(85,160) Operation Year 1 ……………………………………….. 36,000 Year 2 ……………………………………….. 50,000 Year 3 ……………………………………….. 40,000...

Assume that Heinz manufactures and sells 15,000 cases of catsup

Assume that Heinz manufactures and sells 15,000 cases of catsup each quarter. The following data are available for the third quarter of 2009. Total fixed manufacturing overhead ……………………. $30,000 Fixed selling and administrative expenses ……………… 10,000 Sales price per case ……………………………………… 30 Direct materials per case...

Assume that Hormel Meat Packers incurred the following costs dur

Assume that Hormel Meat Packers incurred the following costs during July: Livestock inspection at auction yard ………………..………………. $ 4,800 Livestock inspection upon delivery ………………..………………… 6,000 Inspector training-finished products ………………..……………….. 2,000 Redesign of processing procedures and sequence ………………..…....

Assume that JIF, which is part of J.M. Smucker Company,

Assume that JIF, which is part of J.M. Smucker Company, processes its only product, 12-ounce jars of peanut butter, in a single process and uses weighted average process costing to account for inventory costs. All materials are added at the beginning of production. The following inventory, production, and cost data are provided for June 2009: Production data Beginning inventory (25% converted)...

Assume that Lenscrafters uses standard costs to control the mate

Assume that Lenscrafters uses standard costs to control the materials in its made-to-order sunglasses. The standards call for 2 ounces of material for each pair of lenses. The standard cost per ounce of material is $15. During July, the Palm Beach location produced 4,800 pairs of sunglasses and used 8,800 ounces of materials. The cost of the materials during July was $15.20 per ounce, and there...