Flagstaff Company has budgeted production units of 8,000 for July and 8,200 for August. The direct materials requirement per unit is 3 ounces (oz.). The company has determined that it wants to have safety stock of direct materials on hand at the end of each month to complete 25% of the units budgeted in the following month. There was 6,000 ounces of direct material in inventory at the start of July. The total cost of direct materials purchases for the July direct materials budget, assuming the materials cost $1.20 per ounce, is:____________
A) $28,800.
B) $28,980.
C) $21,600.
D) $28,620.
E) $36,180.

Answer:B) $28,980.

Explanation:

Beginning inventory is 6,000 ounces

Closing inventory  = 8,200 × 3 ounces × 25%   = 6,150ounces

 Budgeted production  = 8,000 × 3 ounces=24,000

Direct material to be purchased  = Closing inventory + Budgeted production - Beginning inventory= 29,400 ounces

Direct material to be purchased  = 6,150ounces +24,000-  6,000 ounces

= 24,150 ounces

Now,For $1.20 per pounce, it would be

= 24,150 ounces × $1.20

= $28,980.

What is the IRR, assuming an industrial building can be purchased for $250,000 and is expected to yield cash flows of $18,000 for each of the next five years and be sold at the end of the fifth year for $280,000

MC Qu. 98 Garcia Corporation's April sales forecast... Garcia Corporation's April sales forecast projects that 6,100 units will sell at a price of $10.60 per unit. The desired ending inventory is 10% higher than the beginning inventory, which was 1,100 units. Budgeted purchases of units in April would be:

Please describe an effective leadership style

g provides the following income statement for 20X9: Net Sales $240,000 Cost of Goods Sold 110,000 Gross Profit $130,000 Operating Expenses: Selling Expenses 45,000 Administrative Expenses 12,000 Total Operating Expenses 57,000 Operating Income $73,000 Other Income and (Expenses): Loss on Sale of Capital Assets (29,000) Interest Expense (1000) Total Other Income and (Expenses) (30,000) Income Before Income Taxes $43,000 Income Tax Expense 5000 Net Income $38,000 Calculate the times-interest-earned ratio.

On August 1, Batson Company issued a 60-day note with a face amount of $49,800 to Jergens Company for merchandise inventory. (Assume a 360-day year is used for interest calculations.) a. Determine the proceeds of the note assuming the note carries an interest rate of 8%. fill in the blank 1 b. Determine the proceeds of the note assuming the note is discounted at 8%.

K Company estimates that overhead costs for the next year will be $2,967,000 for indirect labor and $860,000 for factory utilities. The company uses direct labor hours as its overhead allocation base. If 86,000 direct labor hours are planned for this next year, how much overhead would be assigned to a product requiring 6 direct labor hours

Complete the following table:
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Samir's SE tax for 2020 is $7,771 [$55,000 x 0.9235 x 0.153 = $7,771]. Samir may reduce his estimated tax payments by how much? Hint: USE Form Schedule SE to help you find the answer.

Identify whether each of the following statements best illustrates the concept of consumer surplus, producer surplus, or neither.
Statement Consumer Surplus Producer Surplus Neither
Even though I was willing to pay up to $83 for a watch, I bought a watch for only $75.
I sold a used textbook for $55, even though I was willing to go as low as $47 in order to sell it.
A local store was having a sale on sweaters, so I bought a jersey sweater for my brother.

Assuming no change in government spending, an decrease in taxes of $100 billion with an MPC of 0.90 will add a total of $_____________ billion to the economy after the multiplier effect.
A. 800
B. 400
C. 500
D. 900

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Raw materials (all direct materials):
Purchased during the month $38,000
Used in production $35,000
Labor:
Direct labor-hours worked during the month 3,150
Direct labor cost incurred $30,000
Manufacturing overhead cost Incurred (total) $24,500
Inventories:
Raw materials (all direct), May 31 $8,000
Work in process, May 1 $9,000
Work in process, May 31 $12,000
Contains $4,400 in direct labor cost.
The Cost of Goods Manufactured for May was:____.
a. $84,500.
b. $95,000.
c. $75,500.
d. $81,500.

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Cantor Corporation acquired a manufacturing facility on four acres of land for a lump-sum price of $8,000,000. The building included used but functional equipment. According to independent appraisals, the fair values were $4,500,000, $3,000,000, and $2,500,000 for the building, land, and equipment, respectively. The initial values of the building, land, and equipment in the general ledger would be:

When comparing the results of using the direct, sequential, and reciprocal services methods of allocating support department costs to production departments, which of the following statements is true for a manufacturing company that has a total of $1,500,000 in support costs to allocate?
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b.The reciprocal services method can be viewed as a compromise on accuracy and difficulty in allocating the $1,500,000 because it considers some, though not all, inter-support-department services and is easier to compute than the direct method.
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One of the most-often sold items at a grocery store is frozen pizzas. The weekly demand for frozen pizzas at a local grocery store is 10,000 pizzas. Whenever a new order is placed for a batch of frozen pizzas, the grocery store incurs a cost of $20. The holding costs are $0.10 per frozen pizza per week. Determine the EOQ for frozen pizzas.

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All That Blooms provides environmentally friendly lawn services for homeowners. Its operating costs are as follows.
Depreciation $1,224 per month
Advertising $153 per month
Insurance $1,683 per month
Weed and feed materials $10 per lawn
Direct labor $8 per lawn
Fuel $2 per lawn
All That Blooms charges $50 per treatment for the average single-family lawn.
Determine the company

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Overhead rates for activity-based costing Cutting $________per machine hour Design $_______per setup
Determine the amount of overhead allocated to the wool product line and the cotton product line using activity-based costing.
Wool product line Cotton product line Overhead Allocated $____________ for the wool product line $__________ cotton product line.
Calculate the overhead rate using traditional approach. (Round answer to 2 decimal places, e.g. 12.25.) Overhead rates using the traditional approach $ _____________per direct labor hour

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Bearington Enterprises uses an activity-based costing system to assign costs in its auto-parts division.

Activity Est. Indirect Activity Costs Allocation Base Cost Allocation Rate
Materials $60,000 Material moves $5.00/move
Assembling $175,000 Direct labor hours $5.00/dir. labor hour
Packaging $70,000 # of finished units $2.50/finished unit

The following units were produced in December with the following information:

Part # # Produced Materials Costs # Moves Dir. Labor Hrs.
Part 001 1,350 $2,500 100 500
Part 002 5,500 $5,000 400 200
Part 003 4,050 $7,000 2,800 1,550

Total manufacturing costs for Part 003 are : _______

A company is facing a class-action lawsuit in the upcoming year. It is possible, but not probable, that the company will have to pay a settlement of approximately $2,000,000. How would this fact be reported in the financial statements to be issued at the end of the current month

To determine whether the goal of stable prices is being​ achieved, the Federal Reserve monitors the​ ________; to determine whether the goal of maximum employment is being​ achieved, the Federal Reserve monitors​ ________.

A company is considering eliminating a department that has an annual contribution margin of $33,000 and $66,000 in annual fixed costs. Of the fixed costs, $16,500 cannot be avoided. The annual financial advantage (disadvantage) for the company of eliminating this department would be: Multiple Choice ($33,000) $33,000 ($16,500) $16,500

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Determining Market-Based and Negotiated Transfer Prices
Carreker, Inc., has a number of divisions, including the Alamosa Division, producer of surgical blades, and the Tavaris Division, a manufacturer of medical instruments.
Alamosa Division produces a 2.6 cm steel blade that can be used by Tavaris Division in the production of scalpels. The market price of the blade is $22.00. Cost information for the blade is:
Variable product cost $ 9.60
Fixed cost 6.00
Total product cost $15.60
Tavaris needs 15,000 units of the 2.6 cm blade per year. Alamosa Division is at full capacity (90,000 units of the blade).
Required:
Round your answers to the nearest cent.
If Carreker, Inc., has a transfer pricing policy that requires transfer at full product cost, what would the transfer price be?
$ per unit
Do you suppose that Alamosa and Tavaris divisions would choose to transfer at that price?
Alamosa
Tavaris

MC Qu. 160 Webster Corporation's monthly... Webster Corporation's monthly projected general and administrative expenses include $4,300 administrative salaries, $1,700 of other cash administrative expenses, $2,200 of depreciation expense on the administrative equipment, and .5% monthly interest on an outstanding bank loan of $27,000. Compute the total general and administrative expenses to be reported on the general and administrative expense budget per month.

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