John Hasty opened his bakery on March 1, 1999. The following transactions took place in early March: 1. Deposited $10,000 into a checking account in the name of the Hasty Bakery. 2. Leased a small kitchen for one year at $500 per month. One month’s rent was paid at this time. 3. Purchased kitchen equipment for $3,000 cash. 4. Purchased baking ingredients for $6,000 on […]

Sismondi Company has a process cost accounting system. During May, the Assembly and Finishing Departments had the following data concerning physical units: Assembly: Work in process, May 1 3,000 Started into process during the month 65,000 Work in process, May 31 7,000 Finishing: Work in process, May 1 6,000 Transferred in from Assembly Department during the month ? Work in process, May 31 4,000 Instructions […]

The Muller Company reports the following physical units for its Polishing Department for the month ended July 31, 2014. Units to be accounted for Physical Units Work in process. Jury • 1,000 Transferred in 11 .000 Total units 12.000 Units accounted for Completed and transferred out 10:500 Work in process, July 31 (301–i complete) .1.500 Total units accounted for 12.000 Work in process July 1 […]

Fastchip, Inc. manufactures two computers: the FC-PC which sells for $2,000, and the FC-laptop, which sells for $4,200. The production cost per unit for each computer in 2014 was as follows:   FC-PC FC-laptop Direct Nlaterials $1.260 $3,040 Direct labor ($25 per hour) 200 300 Manufacturing overhead ($10 per DLH) 80 120 Total per unit cost $1,540 $3,460 In 2014, Fastchip manufactured 20,000 units of […]

In the Gabbana Company, maintenance costs are a mixed cost. At the low level of activity (40 direct labor hours), maintenance costs are $600. At the high level of activity (100 direct labor hours), maintenance costs are $1,100. Using the high-low method, what is the variable maintenance cost per unit and the total fixed maintenance cost? Variable Cost Total Per Unit Fixed Cost a $8.33 […]

In the Klein Company, 50,000 units are produced and 40,000 units are sold. Variable manufacturing costs per unit are $8 and fixed manufacturing costs are $160,000. The cost of the ending finished goods inventory under each costing approach is: Absorption Variable Costing Costing a $112,000 $ 80,000 b. 112:000 ‘100,000 c. 120:000 80,000 d. 120,000 ‘100,000

Galliano Company has accumulated the following information pertaining to maintenance costs for the last eight months. Direct Maintenance Month Labor Hours Cost January 2,800 515.000 February 1,000 7.000 March 2,500 13,000 April 4.000 22,000 May 3,000 18,000 June 3,500 19,000 July 1.500 8.000 August 2000, 10.000

The Crawford Company begins operations with a cash balance of 360,000 on January 1. 2014. Relevant quarterly budgeted data pertaining to a cash budget for the first two quarters of the year are as follows: Sales: (1)$140.000. (2) $250,000. All sales are on account: 60% of the sales are expected to be collected in cash -n the period of sale, and the bafance n the […]

Indicate whether each of the following is true (T) or false (F) in the space provided. 1. The budget itself and the administration of the budget are entirely accounting responsibilities. 2. A primary benefit of budgeting is that it provides definite objectives for evaluating subsequent performance at each level of responsibility. 3. If a budget is effective enough, it can be a substitute for management. […]

Vendela has the following sales budget for the year ending December 31, 2014: Quarter 1 2 3 4 Year Expected unit Sales 4,000 3,500 5,000 5,500 18,000