a. Job costingl.Job costing
b. Process costingm.Process costing
c. Job costingn.Job costing
d. Process costingo.Job costing
e. Job costingp.Job costing
f. Process costingq.Job costing
g. Job costingr.Process costing
h. Job costing (but some process costing)s.Job costing
i. Process costingt.Process costing
j. Process costingu.Job costing
k. Job costing
4-17(20 min.)Actual costing, normal costing, accounting for manufacturing overhead.
== 1.80 or 185%
== 1.9 or 190%
2.Costs of Job 626 under actual and normal costing follow:
Direct materials$ 40,000$ 40,000
Direct manufacturing labor costs30,00030,000
Manufacturing overhead costs
$30,000 1.90; $30,000 1.80 57,000 54,000 Total manufacturing costs of Job 626$127,000$124,000
=$2,755,000 $2,610,000 = $145,000
There is no under- or overallocated overhead under actual costing because overhead is allocated under actual costing by multiplying actual manufacturing labor costs and the actual manufacturing overhead rate. This, of course equals the actual manufacturing overhead costs. All actual overhead costs are allocated to products. Hence, there is no under- or overallocatead overhead.
4-18(20 -30 min.) Job costing, normal and actual costing.
=$50 per direct labor-hour
=$42 per direct labor-hour
These rates differ because both the numerator and the denominator in the two calculations are different—one based on budgeted numbers and the other based on actual numbers.
Assembly support ($50 900; $50 1,010)
Assembly support ($42 900; $42 1,010)
3.Normal costing enables Anderson to report a job cost as soon as the job is completed, assuming that both the direct materials and direct labor costs are known at the time of use. Once the 900 direct labor-hours are known for the Laguna Model (June 2007), Anderson can compute the $187,726 cost figure using normal costing. Anderson can use this information to manage the costs of the Laguna Model job as well as to bid on similar jobs later in the year. In contrast, Anderson has to wait until the December 2007 year-end to compute the $180,526 cost of the Laguna Model using actual costing.
Although not required, the following overview diagram summarizes Anderson Construction’s job-costing system.
...1. What is capital budgeting?
2. What are some characteristics that make capital budgeting different from other types of budgets (like a sales budget or cash budget)?
It is the process by which management plans, evaluates, and controls investments in fixed assets.
3. Why is the concept of present value relevant to capital budgeting, but not so relevant to other types of budgeting?
An investment in fixed assets may be viewed as purchasing a series of net cash flows over a period of time.
4. Describe the Payback Period in your own words. Under what circumstances would Payback be an effective method to use in evaluating competing investment alternatives?
The expected period of time that will elapse between the date of a capital expenditure and the complete recovery in cash (or equivalent) of the amount invested.
5. Describe the Accounting Rate of Return in your own words. What are its weaknesses as an investment evaluation tool?
It measures the average income as a percent of the average investment. Disadvantages are not directly considering the expected cash flows from the proposal nor directly considering the timing of the expected cash flows.
6. Describe the calculation of NPV in your own words. What does the word "Net" in Net Present Value refer to?
Capital investments that focus on the present value of the cash flows expected from the investments.
7. Define the Internal Rate of Return.
Internal Rate of Return uses present value concepts to compute the rate...
8 May 2014
The Home Depot, INC. and Subsidiaries
1. Frank S. Blake since 2007
2. 2455 Paces Ferry Road, N.W., Atlanta, Georgia 30339.
3. February 2, 2014
4. The home depot’s principal activity is retail, selling a wide assortment of building materials, home improvement, and lawn and garden products. The Home Depot also offers a number of services to aid the customers in home improvement.
5. The main geographic area of activity is within the United States, but there hundreds of Home Depot location in the Puerto Rico, U.S Virgin Islands, 10 Canadian provinces, and Mexico.
6. KPMG LLP
7. Home Depot is doing really well financially and is expected to continue growing.
8. The financial statements are not the responsibility of the independent accountants.
9. The Home Depot Inc.’s management is responsible for financial reporting and for its assessment of the effectiveness of internal control over financial reporting.
11. $0.47 per share
12. New York Stock Exchange
II. Industry Situation and Company Plans
The Home Depot sells building material for home improvement, lawn and garden care, and services to supplement the other sides of their business. Their priorities lie in customer service, product authority, and productivity/efficiency. They are leaving the Chinese market, but with plans to open more stores in the US and Mexico.
Their future plans are focused around a number of in...
...IMED 2409 – Chapter 4 – Marketing on the Web
Assignment: Complete Exercise E3
Complete Case Problems C1. Oxfam, parts 2 & 5
Discount chains Sears, Target, and Wal-Mart each operate major online stores in addition to their many retail locations. For one of these companies (or a similar firm if none of these three is located near you), visit a physical location and the online store to identify specific customer touchpoints and observe how the company’s brand is presented in each. In a report of about 100 words, evaluate the touchpoint consistency achieved by the company and provide suggestions for how the company might improve its touchpoint consistency.
Case 1. Oxfam
For more than 60 years, Oxfam has worked through and with its donors, staff, project partners, and project participants to overcome poverty and injustice around the world. Early in World War II, Greece was occupied by the German Army. Allied forces created a naval blockade around Greece to prevent further German expansion; however, the blockade caused Greek civilians to suffer severe shortages of food and medicine. In response to this humanitarian crisis, a number of Famine Relief Committees were formed by people in Great Britain to ship emergency supplies through the Allied blockade.
Most of these committees ceased operations after the war ended and the Greek crisis subsided; however, one of them, the Oxford Committee for Famine Relief saw a...
...EXERCISE 4-3 (20–25 minutes)
LeRoi Jones Inc.
For Year Ended December 31, 2007
Net sales ($1,250,000(b) – $17,000)
Cost of goods sold
Income before income tax
Earnings per share
EXERCISE 4-3 (Continued)
Determination of amounts
(a) Administrative expenses
20% of cost of good sold
20% of $500,000
(b) Gross sales X 8%
$100,000 ÷ 8%
(c) Selling expenses
four times administrative expenses.
(operating expenses consist of selling
and administrative expenses; since
selling expenses are 4/5 of operating
expenses, selling expenses are 4
times administrative expenses.)
4 X $100,000
Earnings per share $7.46 ($149,100 ÷ 20,000)
Note: An alternative income statement format is to show income tax a part of expenses, and not as a separate item. In this case, total expenses are $1,083,900.
EXERCISE 4-16 (30–35 minutes)
(a) Roland Carlson Inc.
For the Year Ended December 31, 2007
Week 5: Case Study 2 - Internal Control
Acct Fin: Managerial Use,Anlys
1. Inform the President of any new internal control requirements if the company decides to go public. (7 points)
Answer – Based on facts given in the case, new internal control requirements that are needed for the company to go public are listed below
a. Compliance with Sarbanes-Oxley Act Regulations
b. Compliance with SEC, GAAP and IFRS procedures to record all transactions
c. Internal audit on company financial and business processes and transactions
d. Implementation of better security measures for data protection, identity protection and ensuring that company resources are not misused
2. Advise the President of what the company is doing right (they are doing some things well) and also recommend to the President whether or not they should buy the indelible ink machine. When you advise the President, please be sure to reference the applicable internal control principle that applies. (13 points)
Answer – Some of the things that the company is doing well and should continue are listed below and in accordance with the Sarbanes-Oxley Act and GAAP regulations:
a. Pre-numbered invoices are used for accounting
b. Receiving checks and completing the monthly bank reconciliation
c. Having an accountant who is able to manage the accounts and streamlining many of their processes
d. Loyalty and trust with long term employees
In terms of requirement for...
Accounting 525 01W, 02W and 03W
Advanced Managerial Accounting
Instructor: Class Hours: Online Course
Office Hours: Online Course
Class meeting dates: January 14th – May 10th
Text: Managerial Accounting, 14th ed., by Garrison, Noreen and
Brewer. ISBN 9780077503932 (Hard cover bundle – text and Connect access) or 9780077909703 (Loose leaf bundle) or 9780077317751 (electronic Connect Plus with on line text)
Prerequisites: Consent of the instructor
Course Description: A study of accounting as related to making decisions. Readings, cases and problems dealing with managerial accounting issues, accounting concepts, budgeting and cost control, using accounting information in planning and control.
Course Objectives: To develop knowledge about, and proficiency in the use of, accounting as an information system for measuring, processing and communicating information that is useful in making economic decisions. To gain knowledge of the generally accepted accounting principles and procedures essential to the preparation and analysis of various reports that aid in managerial decision making and be able to apply them to practical situations.
Course Embedded Assessment Objectives: Your achievement level for each objective will be measured by your success in completing the quizzes and examinations.
Understand the role of managerial...
Case Study 2-Internal Controls
Table of Contents
II) Internal Control Requirements-Sarbanes/Oxley Act
III) Internal Controls-Strengths
IV) Internal Controls-Opportunities for Improvement
It has come to the attention of the president of LJB Company that an evaluation is needed to determine the reliability and level of compliance of the company’s internal controls. It is imperative if the company is going public that it follow the regulations set forth by governing bodies. The punishment for violation of these regulations can be up to 20 years in prison.
The Sarbanes-Oxley Act of 2002 helps to ensure that shareholder investments and the general public are protected from fraudulent practices within accounting. According to SOX there are five components:
1) Assessment of Internal Control- An internal control report must be included in the company’s annual report.
2) No Altering of Financial Documents- If anyone falsifies or alters financial documents they are subject to criminal penalties that includes up to 20 year in prison.
3) Must Disclose Periodic Reports- Financial statements are required to be accurate as any items off-balance could be used in a fraudulent manner.
4) Data in a timely manner- Financial data must be presented within a...
Unit 3 Nokia Case Study Analysis
MT460 Management Policy and Strategy
Date: August 18, 2010
Vertu: Nokia Luxury Mobile Phone for the Urban Rich
In this case study of Nokia Vertu, a luxury phone, I will review the strengths, weaknesses, opportunities and threats of the company. The struggles the luxury phone brand has gone through with the continually changing technology and the success they have seen. The vision statement of the company is to deliver an outstanding customer motoring experience through honesty and trust (Our-Vision-Values, “2013”).
Synopsis of the Situation
Vertu Nokia is trying to find a way to stay afloat in the competitive world of cell phones. This is a luxury phone brand costing more than $2,000 per phone but with outdated software systems. The big difference is the materials the phone is made of such as titanium, exotic leather, diamonds and other precious gems. Nokia must find an alternative to the current operating system while maintaining their customers trust.
The key issue Vertu faces is the outdated operating system and what they should choose to update to. Another issue the company faces is that this phone is only geared towards the extremely wealthy; it is not a phone to be mass produced and used by all. In order to sell more phones they will need to cater to the wealthy and find more unique designs to generate more interest.