ACC 560 Week 2 Assignment
P3-2A Ortega Industries Inc. manufactures in separate processes furniture for homes. In each process, materials are entered at the beginning, and conversion costs are incurred uniformly. Production and cost data for the first process in making two products in two different manufacturing plants are as follows.
Cutting Department
Plant 1 Plant 2
Production Data-July T12-Tables C10-Chairs
Work in process units, July 1 -0- -0-
Units started into production 20,000 16,000
Work in process units, July 31 3,000 500
Work in process percent complete 60 80
Cost Data-July
Work in process, July 1 $ -0- $ -0-
Materials 380,000 288,000
Labor 234,400 125,900
Overhead 104,000 96,700
Total $718,400 $510,600
a) For each plant:
1. Compute the physical units of production
2. Compute equivalent units of production for materials and for conversion costs.
3. Determine the unit costs of production.
4. Show the assignment of costs to units transferred out and in process.
b) Prepare the production cost report for Plant 1 for July 2008
Click here for the solution: Ortega Industries Inc. manufactures in separate processes furniture for homes
Showing posts with label separate. Show all posts
Showing posts with label separate. Show all posts
Monday, October 26, 2015
Monday, October 5, 2015
Benson, Inc. produces three separate products from a common process costing $100,000
ACC 560 Week 5 Assignment
E7-8 Benson, Inc. produces three separate products from a common process costing $100,000. Each of the products can be sold at the split-off point or can be processed further and then sold for a higher price. Shown below are cost and selling price data for a recent period.
Sales Value at Split-off Point Cost to Process Further Sales Value After Further Processing
Product 12 $50,000 $100,000 $190,000
Product 14 10,000 30,000 35,000
Product 16 60,000 150,000 220,000
a. Determine total net income if all products are sold at the split-off point.
b. Determine total net income if all products are sold after further processing.
c. Using incremental analysis, determine which products should be sold at the split-off point and which should be processed further.
d. Determine total net income using the results from the previous part of the question.
Click here for the solution: Benson, Inc. produces three separate products from a common process costing $100,000
E7-8 Benson, Inc. produces three separate products from a common process costing $100,000. Each of the products can be sold at the split-off point or can be processed further and then sold for a higher price. Shown below are cost and selling price data for a recent period.
Sales Value at Split-off Point Cost to Process Further Sales Value After Further Processing
Product 12 $50,000 $100,000 $190,000
Product 14 10,000 30,000 35,000
Product 16 60,000 150,000 220,000
a. Determine total net income if all products are sold at the split-off point.
b. Determine total net income if all products are sold after further processing.
c. Using incremental analysis, determine which products should be sold at the split-off point and which should be processed further.
d. Determine total net income using the results from the previous part of the question.
Click here for the solution: Benson, Inc. produces three separate products from a common process costing $100,000
Tuesday, September 8, 2015
Elise, CPA, owns a public accounting firm and wishes to establish a separate partnership to offer data processing services
MULTIPLE CHOICE
1. Elise, CPA, owns a public accounting firm and wishes to establish a separate partnership to offer data processing services to the public and other public accountants.
2. In some situations, the interpretations of the Rules of Conduct permit former partners to have relationships with a client of the firm without affecting the firm’s independence. Which of the following situations would not cause a loss of independence?
3. Anna Greer, a CPA in public practice, contacts Blake Sawyers, an employee of Jackson & Jackson, LLP, and makes him an offer of employment without first notifying Jackson & Jackson, LLP. According to the AICPA’s Code of Professional Conduct, Anna’s behavior:
4. When the question arises whether a CPA firm may do both bookkeeping and auditing services for the same public company client, the Interpretations of the AICPA’s Code of Professional Conduct:
5. A member in public practice may perform for a contingent fee any professional services for a client for whom the member or member’s firm performs:
6. “Independence” in auditing means:
7. Interpretations of the rules regarding independence allow an auditor to serve as:
8. Which of the following statements is true? The CPA firm will lose its independence if:
9. Which of the following statements is not true with respect to audit committees?
10. According to the Principles section of the Code of Professional Conduct, all members:
Click here for the solution: Elise, CPA, owns a public accounting firm and wishes to establish a separate partnership to offer data processing services
1. Elise, CPA, owns a public accounting firm and wishes to establish a separate partnership to offer data processing services to the public and other public accountants.
2. In some situations, the interpretations of the Rules of Conduct permit former partners to have relationships with a client of the firm without affecting the firm’s independence. Which of the following situations would not cause a loss of independence?
3. Anna Greer, a CPA in public practice, contacts Blake Sawyers, an employee of Jackson & Jackson, LLP, and makes him an offer of employment without first notifying Jackson & Jackson, LLP. According to the AICPA’s Code of Professional Conduct, Anna’s behavior:
4. When the question arises whether a CPA firm may do both bookkeeping and auditing services for the same public company client, the Interpretations of the AICPA’s Code of Professional Conduct:
5. A member in public practice may perform for a contingent fee any professional services for a client for whom the member or member’s firm performs:
6. “Independence” in auditing means:
7. Interpretations of the rules regarding independence allow an auditor to serve as:
8. Which of the following statements is true? The CPA firm will lose its independence if:
9. Which of the following statements is not true with respect to audit committees?
10. According to the Principles section of the Code of Professional Conduct, all members:
Click here for the solution: Elise, CPA, owns a public accounting firm and wishes to establish a separate partnership to offer data processing services
For each of these five separate cases, identify the principle of internal control that is violated
ACC 225 Week 8
Problems 8-1B
For each of these five separate cases, identify the principle of internal control that is violated. Recommend what the business should do to ensure adherence to principles of internal control.
1. Latoya Tally is the company’s computer specialist and oversees its computerized payroll system. Her boss recently asked her to put password protection on all office computers. Latoya has put a password in place that allows only the boss access to the file where pay rates are changed and personnel are added or deleted from the payroll.
2. Lake Theater has a computerized order-taking system for its tickets. The system is active all week and backed up every Friday night.
3. X2U Company has two employees handling acquisitions of inventory. One employee places purchase orders and pays vendors. The second employee receives the merchandise.
4. The owner of Super-Aid uses a check protector to perforate checks, making it difficult for anyone to alter the amount of the check. The check protector sits on the owner’s desk in an office
that contains company checks and is often unlocked.
5. LeAnn Company is a small business that has separated the duties of cash receipts and cash disbursements. The employee responsible for cash disbursements reconciles the bank account monthly.
Click here for the solution: For each of these five separate cases, identify the principle of internal control that is violated
Problems 8-1B
For each of these five separate cases, identify the principle of internal control that is violated. Recommend what the business should do to ensure adherence to principles of internal control.
1. Latoya Tally is the company’s computer specialist and oversees its computerized payroll system. Her boss recently asked her to put password protection on all office computers. Latoya has put a password in place that allows only the boss access to the file where pay rates are changed and personnel are added or deleted from the payroll.
2. Lake Theater has a computerized order-taking system for its tickets. The system is active all week and backed up every Friday night.
3. X2U Company has two employees handling acquisitions of inventory. One employee places purchase orders and pays vendors. The second employee receives the merchandise.
4. The owner of Super-Aid uses a check protector to perforate checks, making it difficult for anyone to alter the amount of the check. The check protector sits on the owner’s desk in an office
that contains company checks and is often unlocked.
5. LeAnn Company is a small business that has separated the duties of cash receipts and cash disbursements. The employee responsible for cash disbursements reconciles the bank account monthly.
Click here for the solution: For each of these five separate cases, identify the principle of internal control that is violated
Wednesday, September 2, 2015
LaGreca Company is involved in four separate industries
LaGreca Company is involved in four separate industries. The following information is available for each of the four industries.
Operating Segment Total Revenue Operating Profit (Loss) Identifiable Assets
W $ 60,000 $15,000 $167,000
X 10,000 1,500 83,000
Y 23,000 (2,000) 21,000
Z 9,000 1,000 19,000
$102,000 $15,500 $290,000
Instructions
Determine which of the operating segments are reportable based on the:
(a) Revenue test.
(b) Operating profit (loss) test.
(c) Identifiable assets test.
Indicate in the table below whether the segment is reportable or not, based on either revenue, profit or identifiable assets.
Click here for the solution: LaGreca Company is involved in four separate industries
Operating Segment Total Revenue Operating Profit (Loss) Identifiable Assets
W $ 60,000 $15,000 $167,000
X 10,000 1,500 83,000
Y 23,000 (2,000) 21,000
Z 9,000 1,000 19,000
$102,000 $15,500 $290,000
Instructions
Determine which of the operating segments are reportable based on the:
(a) Revenue test.
(b) Operating profit (loss) test.
(c) Identifiable assets test.
Indicate in the table below whether the segment is reportable or not, based on either revenue, profit or identifiable assets.
Click here for the solution: LaGreca Company is involved in four separate industries
Sunday, July 19, 2015
Lancers Inc. is involved in five separate industries
Lancers Inc. is involved in five separate industries. The following information is available for each of the five industry segments.
Operating Segment Total Revenue Operating Profit (Loss) Identifiable Assets
A $140,000 $25,000 $240,000
B 40,000 8,000 11,000
C 26,000 (5,000) 36,000
D 190,000 (2,000) 49,000
E 2,000 500 15,000
$398,000 $26,500 $361,000
Instructions
Determine which of the operating segments are reportable based on the:
(a) Revenue test.
(b) Operating profit (loss) test.
(c) Identifiable assets test.
Click here for the solution: Lancers Inc. is involved in five separate industries
Operating Segment Total Revenue Operating Profit (Loss) Identifiable Assets
A $140,000 $25,000 $240,000
B 40,000 8,000 11,000
C 26,000 (5,000) 36,000
D 190,000 (2,000) 49,000
E 2,000 500 15,000
$398,000 $26,500 $361,000
Instructions
Determine which of the operating segments are reportable based on the:
(a) Revenue test.
(b) Operating profit (loss) test.
(c) Identifiable assets test.
Click here for the solution: Lancers Inc. is involved in five separate industries
Tuesday, June 23, 2015
Ortega Industries Inc. manufactures in separate processes furniture for homes
Problem 3-2A (P3-2A) Ortega Industries Inc. manufactures in separate
processes furniture for homes. In each process, materials are entered at
the beginning, and conversion costs are incurred uniformly. Production
and cost data for the first process in making two products in two
different manufacturing plants are as follows.
Cutting Department
Plant 1 Plant 2
Production Data—July T12-Tables C10-Chairs
Work in process units, July 1 –0– –0–
Units started into production 20,000 16,000
Work in process units, July 31 3,000 500
Work in process percent complete 60 80
Cost Data—July
Work in process, July 1 $ –0– $ –0–
Materials 380,000 288,000
Labor 234,400 125,900
Overhead 104,000 96,700
Total $718,400 $510,600
Hint:
Complete four steps necessary to prepare a production cost report.
Instructions
(a) For each plant:
1. Compute the physical units of production.
2. Compute equivalent units of production for materials and for conversion costs.
3. Determine the unit costs of production.
4. Show the assignment of costs to units transferred out and in process.
Check:
(a) (1) T12: Transferred out 17,000 units; WIP 3,000 units
(2) T12: Materials 20,000 e.u.; CC 18,800 e.u.
(3) T12: Materials $19; CC $18
(4) T12: Transferred out $629,000; WIP $89,400
Click here for the solution: Ortega Industries Inc. manufactures in separate processes furniture for homes
Cutting Department
Plant 1 Plant 2
Production Data—July T12-Tables C10-Chairs
Work in process units, July 1 –0– –0–
Units started into production 20,000 16,000
Work in process units, July 31 3,000 500
Work in process percent complete 60 80
Cost Data—July
Work in process, July 1 $ –0– $ –0–
Materials 380,000 288,000
Labor 234,400 125,900
Overhead 104,000 96,700
Total $718,400 $510,600
Hint:
Complete four steps necessary to prepare a production cost report.
Instructions
(a) For each plant:
1. Compute the physical units of production.
2. Compute equivalent units of production for materials and for conversion costs.
3. Determine the unit costs of production.
4. Show the assignment of costs to units transferred out and in process.
Check:
(a) (1) T12: Transferred out 17,000 units; WIP 3,000 units
(2) T12: Materials 20,000 e.u.; CC 18,800 e.u.
(3) T12: Materials $19; CC $18
(4) T12: Transferred out $629,000; WIP $89,400
Click here for the solution: Ortega Industries Inc. manufactures in separate processes furniture for homes
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