Xcaliber manufactures high-end flatware

Xcaliber manufactures high-end flatware. One of the crucial processes in flatware production is polishing. The company normally operates three polishing machines to maintain pace with the upstream and downstream production operations. However, one to the polishing machines broke yesterday, and management has been informed that the machine will not be back in operation until repairs are completed in three weeks. Two machines cannot keep the pace with the volume of products flowing to the polishing operation. You have been hired as a consultant to improve the throughput of the polishing operation. Discuss the tactics you would recommend Xcaliber to employ for handling the capacity limitation.


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Janie graduates from high school in 2010 and enrolls in college in the fall

Janie graduates from high school in 2010 and enrolls in college in the fall. Her parents pay $4,000 for her tuition and fees.
a. Assuming Janie's parents have AGI of $170,000, what is the American Opportunity credit they can claim for Janie?
b. Assuming Janie's parents have AGI of $75,000, what is the American Opportunity credit they can claim for Janie?


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On May 31, the inventory balances of Princess Designs, a manufacturer of high-quality children’s clothing, were as follows

P 3. On May 31, the inventory balances of Princess Designs, a manufacturer of high-quality children’s clothing, were as follows: Materials Inventory, $21,360; Work in Process Inventory, $15,112; and Finished Goods Inventory, $17,120. Job order cost cards for jobs in process as of June 30 had these totals:

The predetermined overhead rate is 130 percent of direct labor costs. Materials
purchased and received in June were as follows:
June 4 $33,120
June 16 28,600
June 22 31,920
Direct labor costs for June were as follows:
June 15 payroll $23,680
June 29 payroll 25,960
Direct materials requested by production during June were as follows:
June 6 $37,240
June 23 38,960

On June 30, Princess Designs sold on account finished goods with a 75 percent markup over cost for $320,000.

Required
1. Using T accounts for Materials Inventory, Work in Process Inventory, Finished Goods Inventory, Overhead, Accounts Receivable, Payroll Payable, Sales, and Cost of Goods Sold, reconstruct the transactions in June.
2. Compute the cost of units completed during the month.
3. What was the total cost of goods sold during June?
4. Determine the ending inventory balances.
5. Jobs 24-A and 24-C were completed during the first week of July. No additional materials costs were incurred, but Job 24-A required $960 more of direct labor, and Job 24-C needed an additional $1,610 of direct labor. Job 24-A was composed of 1,200 pairs of trousers; Job 24-C, of 950 shirts. Compute the product unit cost for each job. (Round your answers to two
decimal places.)


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Great Outdoze, Inc. manufactures high-quality sleeping bags, which sell for $130 each

8-29 Great Outdoze, Inc. manufactures high-quality sleeping bags, which sell for $130 each. The variable costs of production are as follows:

Direct material ................................................................................................ $40
Direct labor ....................................................................................................... 22
Variable manufacturing overhead ................................................................... 16

Budgeted fixed overhead in 20x4 was $400,000 and budgeted production was 25,000 sleeping bags. The year’s actual production was 25,000 units, of which 22,000 were sold. Variable selling and administrative costs were $2 per unit sold; fixed selling and administrative costs were $60,000.

Required:
1. Calculate the product cost per sleeping bag under (a) absorption costing and (b) variable costing.
2. Prepare income statements for the year using (a) absorption costing and (b) variable costing.
3. Reconcile reported income under the two methods using the shortcut method.
4. Suppose that Great Outdoze, Inc. implemented a JIT inventory and production management system at the beginning of 20x4. In addition, the firm installed a flexible manufacturing system. Would you expect reported income under variable and absorption costing to be different by as great a magnitude as you found in requirement (3)? Explain.

Check:
1. Total variable cost: $78 per unit 2.(a). Absorption costing, net income: $688,000


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