McNeilly Inc. is considering using stocks of an old raw material in a special project. The special project would require all 220 kilograms of the raw material that are in stock and that originally cost the company $1,804 in total. If the company were to buy new supplies of this raw material on the open market, it would cost $8.55 per kilogram. However, the company has no other use for this raw material and would sell it at the discounted price of $7.75 per kilogram if it were not used in the special project. The sale of the raw material would involve delivery to the purchaser at a total cost of $97.00 for all 220 kilograms. What is the relevant cost of the 220 kilograms of the raw material when deciding whether to proceed with the special project? 

Routsong Company had the following sales and production data for the past four years:     Year 1 Year 2 Year 3 Year 4 Production in units 6,000 9,000 4,000 5,000 Sales in units 6,000 6,000 5,000 7,000   Selling price per unit, variable cost per unit, and total fixed cost are the same in each year. Which of the following statements is not correct?

Why is a balanced scorecard critical when evaluating a firm with significant intangibles?

The LaGrange Corporation had the following budgeted sales for the first half of the current year:     Cash Sales   Credit Sales January $ 70,000 $ 340,000 February $ 50,000 $ 190,000 March $ 40,000 $ 135,000 April $ 35,000 $ 120,000 May $ 45,000 $ 160,000 June $ 40,000 $ 140,000   The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled: Collections on sales: 60% in month of sale 30% in month following sale 10% in second month following sale The accounts receivable balance on January 1 of the current year was $70,000, of which $50,000 represents uncollected December sales and $20,000 represents uncollected November sales. The total cash collected during January by LaGrange Corporation would be:

Kozloff Cheesy Wedding Company makes very elaborate wedding cakes to order. The owner of the company has provided the following data concerning the activity rates in its activity-based costing system: Activity Cost Pools Activity Rate Size-related $1.16 per guest Complexity-related $33.47 per tier Order-related $65.95 per order The measure of activity for the size-related activity cost pool is the number of planned guests at the wedding reception. The greater the number of guests, the larger the cake. The measure of complexity is the number of tiers in the cake. The activity measure for the order-related cost pool is the number of orders. (Each wedding involves one order.) The activity rates include the costs of raw ingredients such as flour, sugar, eggs, and shortening. The activity rates do not include the costs of purchased decorations such as miniature statues and wedding bells, which are accounted for separately. Data concerning two recent orders appear below:   Winterhalter Wedding Manliguis Wedding Number of reception guests 45 183 Number of tiers on the cake 4 5 Cost of purchased decorations for cake $19.65 $61.84 Assuming that the company charges $613.98 for the Manliguis wedding cake, what would be the overall margin on the order?

Last year, Flynn Company reported a profit of $70,000 when sales totaled $520,000 and the contribution margin ratio was 40%. If fixed expenses increase by $10,000 next year, what amount of sales will be necessary in order for the company to earn a profit of $80,000? 

Which of the following represents the correct order in which the indicated budget documents for a manufacturing company would be prepared?

Sinclair Company’s single product has a selling price of $25 per unit. Last year the company reported a profit of $20,000 and variable expenses totaling $180,000. The product has a 40% contribution margin ratio. Because of competition, Sinclair Company will be forced in the current year to reduce its selling price by $2 per unit. How many units must be sold in the current year to earn the same profit as was earned last year?

Diltex Farm Supply is located in a small town in the rural west. Data regarding the store’s operations follow:· Sales are budgeted at $220,000 for November, $200,000 for December, and $210,000 for January.· Collections are expected to be 70% in the month of sale, 27% in the month following the sale, and 3% uncollectible.· The cost of goods sold is 65% of sales.· The company desires to have an ending merchandise inventory at the end of each month equal to 50% of the next month’s cost of goods sold. Payment for merchandise is made in the month following the purchase. The inventory balance at the end of October was $71,500.· Other monthly expenses to be paid in cash are $22,500.· Monthly depreciation is $19,000.· Ignore taxes. December cash disbursements for merchandise purchases would be: 

Adams Enterprises makes a variety of products that it sells to other businesses. The company’s activity-based costing system has four activity cost pools for assigning costs to products and customers. Details concerning that ABC system are listed below:   Activity Cost Pool Activity Measure Activity Rate Supporting assembly Direct labor hours $3.20 per hour Processing batches Number of batches $103.80 per batch Processing orders Number of orders $98.65 per order Serving customers Number of customers $1,488.00 per customer   The cost of serving customers, $1,488.00 per customer, is the cost of serving a customer for one year. Yousif Corporation buys only one of the company’s products, which Adams Enterprises sells for $25.00 per unit. Last year Yousif Corporation ordered a total of 900 units of this product in 3 orders. To fill the orders, 11 batches were required. The direct materials cost is $8.20 per unit and the direct labor cost is $7.65 per unit. Each unit requires 0.40 DLHs. According to the ABC system, the total cost of the activity “Supporting assembly” for this customer this past year was: