Introduction
Thicket Wood Ltd. is a well-known, high quality custom and handcrafted manufacture of kitchen cabinets. It is located in Kitchener, Ontario and sold most of
A: Objective: Compute payback, NPV and IRR to decide whether Rainbow Products should purchase the machine or not.…
To assume role of Chris Mell, CMA, and prepare a report for the President and CEO Andrew Mayd. This report will advise him on how to address issues facing organization and items discussed at the management meeting.…
The Dawson Lumber Company was founded in the 1870s by the Dawson family to market the lumber on their land. In 1950, Dawson Lumber owned four small lumber yards in the Corn…
ACCT505 Part B Capital Budgeting problem Clark Paints, Inc. Data: Cost of new equipment $200,000 Expected life of equipment in years 5 Disposal value in 5 years $40,000 Life production - number of cans 5,500,000 Annual production or purchase needs 1,100,000 Initial training costs 0 Number of workers needed 3 Annual hours to be worked per employee 2,000 Earnings per hour for employees $12.00 Annual health benefits per employee $2,500 Other annual benefits per employee-% of wages 18% Cost of raw materials per can $0.25 Other variable production costs per can $0.05 Costs to purchase cans - per can $0.45 Required rate of return 12% Tax rate 35% Make Purchase Cost to produce Annual cost of direct material: Need of 1,100,000 cans per year $275,000 Annual cost of direct labor for new employees: Wages 72,000 Health benefits 7,500…
The current production process that Thicketwood Ltd is utilizing can no longer keep with the demand of custom kitchen cabinets. Management must implement a new step to the production line to increase efficiency; however, they must also maintain quality as the customers that are purchasing these cabinets expect top quality for the amount of money they are paying.…
7. A plant manager is attempting to determine the production schedule of various products to maximize profit. Assume that a machine hour constraint is binding. If the original amount of machine hours available is 200 minutes., and the range of feasibility is from 130 minutes to 340 minutes, providing two additional machine hours will result in the:…
For computer paper for the next fiscal quarter, according to the information given by the superintendent, Mendel Paper Company will receive a profit of $240,000.00. If 30,000 units are produced and sold at $14.00 then the total sales will be $420,000.00. However it costs the company $6.00 to produce each unit. So, 30,000 units at $6.00 a unit costs the company $180,000.00. The total sales cost of $420,000.00 minus the cost of labor of $180,000.00 equals the profit of $240,000.00. News came in however from the vice-president of purchasing that the company has firm orders for 35,000 cartons of computer paper. So, if the company continues to sell each unit of computer paper at $14.00 then the total cost of sales is $490,000.00. It still costs Mendel Paper Company $7.00 to produce each unit, therefore costing the company $245,000.00. Making the total profit of computer paper $245,000.00.…
Brunswick Plastics, located in Canada, is an injection molding company. Brunswick Plastics produces 50 different products; however, they are not reaching capacity. Production required multiple labor hours, and since they weren’t at capacity, they were finishing a little above breakeven. The Division Manager of Brunswick Plastics, Michael Smith was informed of an opportunity for his company and must make a decision on whether or not to venture into this opportunity. Mr. Smith was informed of a project of producing 150,000 milk crates. He can place a bid for the project. However, Mr. Smith isn’t confident in the information that he has, and needs answers to best estimate the costs of producing the additional units. The costs that he knows are as follows:…
Chabros is a leading producer and supplier of wood and veneer and a distributor of a wide range of interior and exterior products that have been specified and used in major high-end projects throughout the Middle East for over 40 years. With an aim to cater to the innovative needs of woodworking professionals, architects & interior designers as well as contractors, Chabros has established overseas production units and distribution points throughout the Middle East Region, targeting businesses that are in search for quality products and exceptional service.…
Treetop Forest Products Ltd is a sawmill operation in Oregon, USA, that is owned by major forest products company but operates independently of headquarters. It was built thirty years ago and was completely updated with new machinery five years ago. Treetop has one general manager, sixteen supervisors and support staff, and 180 unionised employees. The mill is divided into six operating departments: boom, sawmill, planer, packaging, shipping and maintenance. And packaging department is separate from the rest of Treetop operations.…
Problem 1 The Commonwealth Company uses a job-order cost system and applies manufacturing overhead cost to jobs using a predetermined overhead rate basedon the cost of materials used in production. At the beginning of the year, the following estimates were made as a basis for computing the predetermined overhead rate: manufacturing overhead cost,$186,000; direct materials cost,$155,000. The following transactions took place during the year (all purchases and services were acquired on account): a. b. c. d. Raw materials purchased,$96,000. Raw materials requisitioned for use in production (all direct materials), $88,000. Utility bills incurred in the factory,$17,000. Costs for salaries and wages incurred as follows: Direct labor, $174,000 Indirect labor,$70,000 Selling and administrative salaries, $124,000 Maintenance costs incurred in the factory,$12,000. Advertising costs incurred,$98,000. Depreciation recorded for the year, $75,000 (75% relates to factory assets and the remainder relates to selling and administrativeassets). Rental cost incurred on buildings, $80,000 (80% of the space is occupied by the factory, and 20% is occupied by sales and administration). Miscellaneous selling and administrative costs incurred, $12,000. Manufacturing overhead cost was applied to jobs. Cost of goods manufactured for theyear, $480,000. Sales for the year (all on account) totaled $900,000. These goods cost $550,000 to manufacturee. f. g. h. i. j. k. l.Requirements: Prepare journal entries on the following page to record the information above.1MANAGEMENT 122 Problem 1 Solution: Account a. Raw…
Marketing: In business, firm marketing generates the revenues that the financial people manage and the production people use in creating goods and services. The challenge that faces marketing is to generate those revenues by satisfying customers’ wants at a profit and in a socially responsible manner.…