Premium Essay

Assignment 3: Calculating Inventory (for Finlon Upholstery Inc)

In: Business and Management

Submitted By alice81
Words 873
Pages 4
Assignment 3: Calculating Inventory
Finlon Upholstery Inc. uses a job-order costing system to accumulate manufacturing costs. The company's work-in-process on December 31, 2001, consisted of one job (no. 2077), which was carried on the year-end balance sheet at $156,800. There was no finished-goods inventory on this date.
Finlon applies manufacturing overhead to production on the basis of direct-labor cost. (The budgeted direct-labor cost is the company's practical capacity, in terms of direct-labor hours multiplied by the budgeted direct-labor rate.) Budgeted totals for 2002 for direct labor and manufacturing overhead are $4,200,000 and $5,460,000, respectively. Actual results for the year are as follows: Actual Results | Direct Materials Used | $5,600,000.00 | Direct Labor | $4,350,000.00 | Indirect Material Used | $65,000.00 | Indirect Labor | $2,860,000.00 | Factory Depreciation | $1,740,000.00 | Factory Insurance | $59,000.00 | Factory Utilities | $830,000.00 | Selling and Administrative Expenses | $2,160,000.00 | Total | $17,664,000.00 |
Job no. 2077 was completed in January 2002, and there was no work in process at year-end. All jobs produced during 2002 were sold with the exception of Job no. 2143, which contained direct-material costs of $156,000 and direct-labor charges of $85,000. The company charges any under- or over-applied overhead to the cost of goods sold category.
Using the above information, do the following: * Calculate the company’s predetermined overhead application rate. * Calculate the additions to the work-in-process inventory account for the direct material used, direct labor, and manufacturing overhead. * Calculate the finished-goods inventory for the 12/31/02 balance sheet. * Calculate the over-applied or under-applied overhead at year-end. * Explain if it is appropriate to include selling and…...

Similar Documents

Premium Essay

L.L Bean, Inc. Item Forecasting and Inventory Management

...L.L Bean, Inc. Item Forecasting and Inventory Management 2012/24/11 Q1. How do LL Bean use past demand data and a specific item forecast to decide how many units of that item to stock? Evaluate the LL Bean's forecasting system (i.e., merits vs. shortfall). One of the most important decision making process in business is forecasting. It can help to make your business more profitable. You should be able to guess how many units of that item to stock based on your past data and predicting future demand. Following two processes used by L.L. Bean, to find how many units of that item to stock: First, they used forecasting to predict for that specific item for upcoming season, which is named “frozen forecasting”. It is based on the book forecast and past demand data, which provided by forecasting department. Second, they used historical forecast errors, namely the A/F rations, which mean actual demand multiplied past season’s forecast. L.L. Bean estimates the range of inventory that the product will be in the upcoming season after converting the point forecast into demand distribution. For instance as the article shows that if last year new products had this ration between 0.7 and 1.6 then where frozen forecast is 1000 that means the new product could have an actual demand for the upcoming year of 700 to 1600 units. In order to find out how much profit each unit brought in compared to how much the unit would lose if it was liquidated, they used profit margin calculation....

Words: 852 - Pages: 4

Premium Essay

Case 3 B&L Inc.

...   November  3,  2011         MGMT  3624  -­‐  Case  3:    B&L  Inc.     Assignment   1) What  do  you  think  of  the  quote  from  Mayes?     • How  would  you  respond?     • What  information  would  you  request?   2) Can  Brian  Wilson  use  the  EOQ  formula  here  to  establish  the  lot  size?     • Do  all  of  the  EOQ  assumptions  hold  here?   3) Do  you  think  B&L  should  outsource  the  bracket?     • Why  or  why  not?   4) What  would  you  say  to  the  plant  manager?   5) Is  the  cost  savings  sufficient  enough  to  move  the  business  to  Mayes?   Assume  that  you  were  in  the  position  of  Brian  Wilson:   What  would  be  your  analysis  of  the  opportunity  to  outsource  the  outrigger   bracket?   B. If  B&L  was  to  outsource  the  outrigger  bracket  to  Mayes,  what  lot  sizes  would   you  specify  and  why?  (Note:  You  must  address  this  question,  regardless  of   your  response  to  Question  A.)   A.     MGMT  3624  Case  3:    B&L  Inc.     ......

Words: 3917 - Pages: 16

Premium Essay

Week 3 Lab Assignment

...PEACHTREE COMPLETE ACCOUNTING 2010 ®: The Winery At Chateau Americana LEARNING OBJECTIVES After completing and discussing this assignment, you should be able to: • Recognize the managerial and technological issues associated with the implementation of a general ledger package • Complete sample transactions • Understand the implications of the design of the user interface • Recognize and evaluate the strengths and weaknesses of controls embedded in a general ledger package • Compare and contrast a general ledger package with a manual accounting information system BACKGROUND As the winery has grown, Rob Breeden, the chief financial officer, has realized that management does not have timely information about the financial condition of the company. This has resulted in several instances in which the decisions made were not optimal. Therefore, he has determined that it is time to convert the current system to a general ledger package. After investigating the possibilities, he has decided to utilize Peachtree Complete Accounting 2010®. Chateau Americana has hired you to convert the system. REQUIREMENTS Using the Peachtree Complete Accounting 2010® software program contained in your CAST package or in your school computer lab, you are to convert Chateau Americana from a manual system to a general ledger software package. If you are working on this assignment on your home computer, load the software following the instructions contained on the CD envelope. As with any......

Words: 3080 - Pages: 13

Free Essay

Assignment 3

...Assignment 3: Virtualization across the Board Chris Brown Strayer University CIS512 Dr. Gideon U. Nwatu ABSTRACT Virtualization is simply when a virtual version of a device or resources such as server, a storage device, network or even an operating system, which divides the resources into one or more execution environment is created. Virtualization has provided greater efficiency in CPU utilization, save energy (less energy consumption), greener IT, and better management through central environment control, reduce project timelines by eliminating hardware procurement, improved disaster recovery capability. Virtualization is sure the best innovation in the IT environment of the present age. The core idea behind virtualization is to make efficient use of hardware resources, such as CPU, memory and disk. In any computing environment it’s highly unlikely that hardware resources are being used to their full capacity. For example a typical desktop does not use more than 10% of its hardware resources under normal operational conditions. By using hardware virtualization, we can more effectively distribute our hardware resources among multiple virtual instances of operating systems according to that particular environment computing needs. Virtualization provides a mean to dynamically allocate hardware resources when needed and essentially unbinding software from hardware. Thus bringing down the overall requirements for hardware, which ultimately result in reduction......

Words: 1691 - Pages: 7

Free Essay

Assignment 3

...Bargaining Power Assignment Part A There are many factors that can influence the outcome of distributive bargaining where the bargaining power of management and the union are concerned. The party with greater bargaining power will have the ability to acquire more positive results. The factors that affect bargaining power are external economic, social and legal factors and internal workplace and organizational factors. The following are examples of the factors and how they affect management and unions. Management Bargaining Power • Macroeconomic Environment - Currently the employer is experiencing a time of economic downturn, which will have a significant impact on both sides of the bargaining table. During a time of economic growth where companies see bigger profits, the union is in a stronger bargaining position and would seek higher wage increases to maintain a real standard of living, while the employer will comply as to not want any workplace interruptions. In this case, with the rise in value of the Canadian dollar, the attendance of US patrons has declined, having an effect on total revenue. The inflation rate is predicted to only rise between 1-2% the following year, making the demand for significant wage increases impractical. With the unemployment rate still fairly high at 7.8% in Ontario, it is unlikely the union would wish to go on strike for risk of job loss. The employer is currently in a stronger bargaining position, as focus will be made on budgetary cuts,......

Words: 861 - Pages: 4

Premium Essay

Assignment 3

...Assignment 3 Name: Mikaela Carender Assignment 3 is a structured assignment. You must complete the questions in order. This is a short capstone assignment that will take us briefly through the research process. Let’s pretend that we’re all taking an ENGL 1001 class this semester and that we are required to write a paper on a current event, issue, or controversy. As part of our research for the paper, we are required to complete an annotated bibliography. An annotated bibliography is a list of citations to books, articles, and documents. Each citation is followed by a brief (usually about 150 words) descriptive and evaluative paragraph, the annotation. The purpose of the annotation is to inform the reader of the relevance, accuracy, and quality of the sources cited. Our instructor has informed us that we need to use 6 total sources for our annotated bibliography: * 3 must be scholarly journal articles * 3 can be a mix of popular articles, reference sources, internet sources, images, statistical sources, etc. * The information must be current, and must not have publication dates or cover dates before the year 2000 * You must cite articles in the APA style. We know that the first thing we should do as researchers is look up the topic in a reference source to gain a bit of knowledge about the topic, become familiar with the vocabulary used to write about and discuss the topic, and to start noting the cited references included in entries that will lead us to...

Words: 1048 - Pages: 5

Premium Essay

Assignment 3

...SCHOOL OF INFORMATION TECHNOLOGY MASTER OF INFORMATION TECHNOLOGY [pic] INDIVIDUAL ASSIGNMENT COVER PAGE |Name of Student |PETER J. MAKIWA | |Student Number |14299896 | |Name of Module |CORPORATE I.T SYSTEMS | |Module Code |MIT853 | |Name of Lecturer |DR. PATRICIA E.N. LUTU | |Date of Submission |24 AUGUST 2014 | |Contact telephone number |+263712501179 | |E-mail address |pmakiwa@gmail.com | |Declaration: |I declare that this assignment, submitted by me, is my own work and that I have | | |referenced all the sources that I have used. | |Signature...

Words: 2878 - Pages: 12

Premium Essay

Assignment 3

...Example for Assignment Three: The report below, while not perfect, aligns the subheadings with the predicted order of sections in the first paragraph. The say-it sentences are aligned with the subheading and the say-again sentences at the end of each section align wording and ideas back to the say-it sentence. Edit your papers to ensure that this organizational alignment happens and be more specific with your sources than this writer was. More comment about the source appears below. Alex _______ Assignment #3: Research Report November 15, 2012 Attempting to establish an internship with Pfizer Inc at this point in time is not in the best interest of Daniel University or its students. The first reason that makes Pfizer Inc. a less than ideal match for Daniel University's internship program is its history of ethical misconduct, especially bribery. In addition, the loss of market exclusivity of Lipitor has resulted in a sharp decline in sales as cheaper generic options have cut into Pfizer's market share. Finally, the decline in sales as a result of the loss of market exclusivity on drugs such as Lipitor has forced Pfizer Inc to resort to drastic cost cutting measures, which may hamper the company's growth potential in the long run and leave post-internship employment prospects for Daniel University students bleak. History of Ethical Misconduct Pfizer Inc has a history of ethical misconduct which heavily incorporates bribery of foreign officials and......

Words: 886 - Pages: 4

Premium Essay

Assignment 3

...Assignment 3 LONG TERM INVESTMENT DECISION The grocery food market is filled with various options for microwavable food depending on the preferences of the consumers. Instead of the traditional use of the oven many families now use the microwave because of their busy lifestyles. The variety of healthy low calorie -microwave food has made shopping much easier for today’s busy consumer. Low calorie labels are regulated by the Food and Drug Administration (FDA) and require food “labels claiming low-calories must not have more than 40 calories for a given reference amount (except sugar substitutes)”. (The Calorie Control Council, 2014) Healthy low-calorie microwave foods have come a long way since the first Swanson pre-packaged TV dinner in the 1950’s. The meal tray was heated in the oven and consisted of a small portion of meat, two vegetables and dessert. The top two competing manufacturers of microwavable low-calorie foods are Lean Cuisine owned by Nestle and Healthy Choice owned by ConAgra. Both leaders in the frozen food market began in the 80’s. Healthy Choice works rigorously with the FDA to assure foods qualify under government health standards for healthy low calorie foods. Like all businesses these two businesses need a financial business plan that allows them to assess the company’s results and set targets for future growth. Marketing is a vital part of the business plan.  Healthy low calorie microwave food as a health option is a concept which has gained......

Words: 4085 - Pages: 17

Premium Essay

Assignment 1: Inventory Management Systems

...Assignment 1: Inventory Management Systems Systems Analysis and Development April 18, 2014 My sister owns a small clothing store. During a conversation at a family dinner, she mentioned her frustration with having to manually track and reorder high demand items. She would like an automated system but has a very small budget. Manually tracking orders is not an effective way to do business. A good example would be if you were tracking inventory using EXCEL you could accidentally delete the file, or a virus could destroy your system. Pen and paper tracking is absolutely not efficient, and it leaves a lot of room for human error. The purpose of inventory management is to provide uninterrupted production, sales, and/or customer service levels at the minimum cost. Since for many companies inventory is the largest item in the current assets category, inventory problems can and do contribute to losses or even business failures (What is inventory management, n.d.). Inventory control is important for the largest companies, but it is equally important for the smallest businesses as well. For instance, my sister’s small clothing store needs to be able to track its best-selling items along with its slow moving items. It needs to keep a higher on-hand count of the best-selling items, so that customers will not be disappointed if the item that they are looking for is not in-stock. A good inventory system creates efficiency and increases profits. My sister’s budget is very limited.......

Words: 1013 - Pages: 5

Premium Essay

Mkt 500 Assignment 3

...000 from endorsements and corporate sponsorships. Each member of this company is responsible for the minimum of two sponsorships ($500) in order to reach our strategic goals. We expect to generate the most sales during the summer months. Sales Forecast | - |Year 1 |Year 2 |Year 3 |Year 5 | | |Sales |$300,000 |$350,000 |$360,000 |$381,500 | | |% Increase |- |10% |12% |16% | | |Sales/ Monthly |$30,500 |$35,500 |$37,600 |$39,700 | | |Sales/ Week |$10,500 |$11,400 |$11,900 |$12,400 | | |Sales/ Day |$1,400 |$1,630 |$1,700 |$1,700 | | Environmental Analysis Jenny’s Closet Party LLC is a small company whose headquarters is located at 2143 Freedom Street Portage, Indiana; however, events will be hosted at the Porter County Expo Center located at 217 E. Division Road Valparaiso, Indiana. The company consists of eight employees; 5 full-time and 3 part-time employees. Jennifer Smith (CEO) will provide the executive leadership and oversee operations of every entity of the company. She will also be instrumental in developing strategies, vision and key performance indicators, to ensure goals are being met. She will be the face of the organization and will......

Words: 9130 - Pages: 37

Premium Essay

Scientific Glass, Inc : Inventory Management

...Operations Management Group Assignment 2 Scientific Glass, Inc : Inventory Management Group: Leonhard Fricke Paul Hannemann Ioannis Gounaris Shruti Vasudev Monday, 14th December 2015 Executive Summary The Scientific Glass, Inc (SG) is a midsized company in the specialized glassware industry producing for and supplying to research facilities and specialized laboratories in its market regions; North America, Europe, Asia Pacific and rest of the world. The company is facing an increase in inventory level balances with too much capital tied up in inventory preventing it from using its capital towards international expansion. Evaluating other options on the basis of effects of SG's previous attempts at correcting inventory management and the company information provided is a step in the right direction for curbing these major problems faced by SG. As planned SG is moving towards expansion in 2010 and bearing in mind a 20% growth in business SG will need external funding which has been calculated as $14.7 Million. This sum total was drawn apon by using the financial data from 2008 and 2009 to prepare a forecast for net sales, inventory and owner's equity in 2010 and then calculating planned investment expenses and hence external funding requirements using assets, liabilities and retained earnings forecasts. In order to prepare this forecast several assumptions were made, namely; percentage of interest expense and taxes have been averaged over...

Words: 628 - Pages: 3

Premium Essay

Assignment # 3

...com/2009/05/how-alan-mulally-is-saving-ford- motor.html. Hellriegel, D., & Slocum, J. W, Jr. (2011). BUS520: Organizational behavior: 2011 custom edition (13th ed.). Mason, OH: South-Western Cengage Learning. Schneider, C. E. (1994). The Training and Development Source Book. (2nd ed.). Human Resource Development Press Inc. Example of Textbook Griffin, R.W., & Moorhead, G. (2007). Organizational behavior: Managing people and organizations (8th ed.). New York: Houghton Mifflin/ Cengage Learning. Wager, K. A., Lee, F. W., & Glaser, J. P. (2009). Healthcare information systems: A practical approach for health care management (2nd ed.). San Francisco, CA: Jossey-Bass. Book or pamphlet with no author identified. The PDR family guide to natural medicines and healing therapies. (1999). New York, NY: Three Rivers-Random House. Book or pamphlet by a corporation or government or other organization. College Board. (2005). Trends in college pricing 2005. New York, NY: Author. United States. Department of Homeland Security. (2004) Preparing for disaster for people with disabilities and other special needs. Washington, DC: FEMA. Points: 280 | Assignment 3: Alan Mulally, CEO, Ford Motor Company | Criteria | UnacceptableBelow 70% F | Fair70-79% C | Proficient80-89% B | Exemplary90-100% A | 1. Discuss the role ofleadership and how it can impact organizationalperformance.Weight: 15%(42/42) | Did not submit orincompletely discussed the......

Words: 2888 - Pages: 12

Premium Essay

Assignment 3

...Assignment 9: Business Finance (16.0 points) 1. Choose an example of a type of new company you could start, and then use this company idea to answer the questions below. You might choose to open a hair salon, a babysitting service, a record store, or many other things. This can be the same type of company you chose in assignment 8, or it can be different. a. Describe the type of company you chose. (1-2 sentences. 0.5 points) b. If you needed to get funding for your company, would you prefer to get debt funding or equity funding? Explain why you would prefer this type. (2-4 sentences. 2.0 points) c. If you needed to get funding for your company, describe at least two sources of funding that you would prefer. Explain why you would prefer these sources of funding. (2-4 sentences. 2.0 points) d. List at least four operating costs your business might have. (1.0 points) e. Consider the industry of your company and the current economy, and then explain how these factors might impact your company’s sales. If you do not think these factors would impact your sales, explain why they wouldn't. (2-4 sentences. 2.0 points) f. If you had $5,000 to start this company, which department would get the most funding? Which department would get the least funding? Which phase of the business would be the most expensive? (2-4 sentences. 2.0 points) 2. Review the Financial Statements: Income Statement from Section 9, Lesson 2 of this course. Use the......

Words: 573 - Pages: 3

Premium Essay

Assignment 3

...turnover | 2.20 | 2.00 | 1.40 | Total assets/equity | 2.40 | 2.20 | 1.50 | ROE | 0.211 | 0.264 | 0.210 | (b) Given the following earnings and dividends, compute the estimated sustainable growth rate for each firm. | K | L | M | Earnings/share | 2.75 | 3.00 | 4.50 | Dividends/share | 1.25 | 1.00 | 1.00 | Payout Rate | 0.455 | 0.333 | 0.222 | Retention Rate | 0.545 | 0.667 | 0.778 | ROE | 0.211 | 0.264 | 0.210 | Growth Rate | 0.115 | 0.176 | 0.163 | PROBLEM 3 (1) Current Ratio is Current Assets/Current Liabilities =650/350 =1.86 (2) Quick Ratio is [Cash + Marketable Securities + Receivables]/Current Liabilities = (100+ 220 +0)/350 = 0.91 (3) Receivable Turnover is Net Annual Sales/Average Receivables = 3,500/[(220+170)/2] =17.95 times (4) Average collection period is 365 Days/Annual Receivable Turnover =365/17.95 =20.33 days (5) Total asset turnover is Net Annual Sales/Average Assets = 3,500/[(2300+2065)/2] =1.60 times (6) Inventory turnover is 365/ Annual Inventory Turnover 2,135/ [(330+230)/2] = 7.63 times (7) Fixed-asset turnover is Net Sales/Average Net Fixed Assets = 3,500/ [(1,500+1,425)/2] =2.39 times (8) Equity turnover is Net Sales/Average Equity = 3,500/ [(1,075+995)/2] = 3.38 times (9) Gross profit margin is Gross Profit/Net Sales = (3,500-2,135)/3,500 = .39 (10) Operating profit margin is Operating Profit/Net Sales =258/ 3,500 =.07 (11) Return on capital is [Net Income + Interest Expense]/Average Total Invested......

Words: 517 - Pages: 3