Part 5: (Using weighted-average)
Computation of gross profit for July
Sales……………………………………………………………………………………….$ 625,000
Title: Reporting in Action 1
QA_Ori:
These costs are part of getting the products that Polaris sells to its
QA_Edit:
Title: Reporting in Action 2
QA_Ori: These costs would either be expensed as cost of sales or as selling
Title: Comparative Analysis 1
QA_Ori:
Polaris Arctic Cat
($ thousands) Current Year Prior Year Current Year Prior Year
Expenses
Title: Comparative Analysis 2
QA_Ori: Polaris and Arctic Cat have similar ratios for both years. Polaris has
Title: Ethics Challenge
QA_Ori:
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
Instructor note: The student’s solution will vary depending on the industry, product, and process chosen. It
will also depend on the sources obtained.
other related Websites for further introductory information.
(2) The second step is to join an industry organization, such as a local society of
(3) The third step is to learn as much as one can from the management and
QA_Edit:
Title: Communicating in Practice
QA_Ori:
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
The main focus of this memorandum should be to explain the difference between
Points the memorandum should make include:
1. The reason for the assistant’s confusion. Given the assistant’s experience in
2. Since your company does not limit production to specific batches of product
4. In job order cost accounting, materials and labor used exclusively on specific
5. A process cost accounting system uses the concepts of direct and indirect
6. Some costs classified as manufacturing overhead in a job order system can
Title: Taking It to the Net
QA_Ori:
There are several ways that such software is helpful to a business.
This software allows companies to create process maps so they can analyze
and communicate processes and workflows.
QA_Edit:
Title: Teamwork in Action
QA_Ori:
Each member of the team should participate in the activity to improve and
reinforce his/her understanding of the entries that correspond to Exhibit 20.4.
(Note: The entries below are pro forma entries since information for amounts are
not provided in this activity.)
1. Raw Materials Inventory……………………………………………#
Accounts Payable………………………………………………. #
Purchased materials on credit.
5. Goods in Process Inventory………………………………………#
7. Factory Overhead ……………………………………………………#
Prepaid Insurance …………………………………………….. #
Accrued Utilities Payable ……………………………………. #
Cash………………………………………………………………… #
Accum. Depreciation—Factory Equip…………………… #
To record manufacturing overhead incurred.
Title: Entrepreneurial Decision 1
QA_Ori: Neal’s new manufacturing facility enables him to make his own mix
production activities than it did previously.
Title: Entrepreneurial Decision 2
QA_Ori:
If a business unnecessarily holds materials, it will be less profitable than a
Even if inventory items are not immediately used in production, they can
Title: Entrepreneurial Decision 3
QA_Ori: A hybrid system combines features of both process and job order
operations. Three Twins Ice Cream resembles a process operation in that
Title: Hitting The Road
QA_Ori:
Instructor note: This assignment is designed to help students identify specific
Cost
Description
Direct
Material
Direct
Labor Overhead
Variable
Cost
Fixed
Cost
Manual
sorting
X X
Heating and
cooling
X X
Overhead allocation suggestions:
Not all components should be allocated the same. Some examples:
Title: Global Decision 1
QA_Ori:
Ratio of Cost of Goods Sold to Total Expenses
(€ millions) Current Year Prior Year
€1,023.1 / €1,374.3=
(From BTN 20-2)
($ thousands) Current Year Prior Year
$1,460,926/
($ thousands) Current Year Prior Year
$367,492/
Ratio of Cost of Goods Sold to Total Expenses
Title: Global Decision 2
QA_Ori: As a percentage of total expenses, Piaggio spends more on selling