{"id":2398,"date":"2019-10-11T07:32:13","date_gmt":"2019-10-11T07:32:13","guid":{"rendered":"https:\/\/assignmenttask.com\/answers\/?p=2398"},"modified":"2020-01-16T19:59:18","modified_gmt":"2020-01-16T19:59:18","slug":"millersafe-way-bicycle-headgear-company-accounting-case-study-answers","status":"publish","type":"post","link":"https:\/\/assignmenttask.com\/answers\/millersafe-way-bicycle-headgear-company-accounting-case-study-answers\/","title":{"rendered":"MillerSafe Way Bicycle Headgear Company Accounting Case Study Answers"},"content":{"rendered":"

Looking for MillerSafe Way Bicycle Headgear Company Essay Assignment Question to Answers<\/strong><\/a> solution? Gets Assignment writing Help<\/strong><\/a>, MBA Homework Solution<\/strong><\/a> & Essay Writing from PhD\/MBA experts at cost-effective rates? Acquire HD Quality research work with 100% Plagiarism free content \u2013 Get related Accounting Assignment Help<\/strong><\/a> & Topics written by native MBA Expert writers in USA, U.K. & Australia.<\/p><\/blockquote>\n

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MillerSafe Way Company Case Study Analysis<\/strong><\/h2>\n

The Business Situation<\/strong><\/p>\n

MillerSafe Way Company manufactures a unique model of bicycle Headgear. The company began operations December 1, 2013. Its accountant quit the second week of operations, and the company is searching for a replacement. The company has decided to test the knowledge and ability of all candidates interviewing for the position. Each candidate will be provided with the information below and then asked to prepare a series of reports, schedules, budgets, and recommendations based on that information. The information provided to each candidate is as follows.<\/p>\n

Assignment Answers to Miller Safe Way Company Manufactures a Unique Model of Bicycle Headgear<\/strong><\/h3>\n

Cost Items and Account Balances<\/u><\/strong><\/p>\n

Administrative salaries \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $15,500<\/p>\n

Advertising for Headgears\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a011,000<\/p>\n

Cash, December 1\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u20130\u2013<\/p>\n

Depreciation on factory building\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 1,500<\/p>\n

Depreciation on office equipment\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 800<\/p>\n

Insurance on factory building\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a01,500<\/p>\n

Miscellaneous expenses\u2014factory\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a01,000<\/p>\n

Office supplies expense \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 300<\/p>\n

Professional fees\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 500<\/p>\n

Property taxes on factory building\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0400<\/p>\n

Raw materials used\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a070,000<\/p>\n

Rent on production equipment\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 6,000<\/p>\n

Research and development\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a010,000<\/p>\n

Sales commissions \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 40,000<\/p>\n

Utility costs\u2014factory \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 900<\/p>\n

Wages\u2014factory\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 70,000<\/p>\n

Work in process, December 1\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u20130\u2013<\/p>\n

Work in process, December 31\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u20130\u2013<\/p>\n

Raw materials inventory, December 1\u00a0 \u00a0 \u00a0 \u00a0 \u20130\u2013<\/p>\n

Raw materials inventory, December 31\u00a0 \u00a0 \u00a0 \u20130\u2013<\/p>\n

Raw material purchases \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 70,000<\/p>\n

Finished goods inventory, December 1\u00a0 \u00a0 \u00a0 \u00a0\u20130\u2013<\/p>\n

\u00a0<\/strong><\/p>\n

Production and Sales Data<\/u><\/strong><\/p>\n

Number of Headgears produced\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 10,000<\/p>\n

Expected sales in units for December<\/p>\n

($40 unit sales price)\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 8,000<\/p>\n

Expected sales in units for January\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a010,000<\/p>\n

Desired ending inventory \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 20% of next month\u2019s sales<\/p>\n

Direct materials per finished unit\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 1 kilogram<\/p>\n

Direct materials cost \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $7 per kilogram<\/p>\n

Direct labor hours per unit\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 .35<\/p>\n

Direct labor hourly rate\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 $20<\/p>\n

\u00a0<\/strong><\/p>\n

Cash Flow Data<\/u><\/strong><\/p>\n

Cash collections from customers: 75% in month of sale and 25% the following month.<\/p>\n

Cash payments to suppliers: 75% in month of purchase and 25% the following month.<\/p>\n

Income tax rate: 45%.<\/p>\n

Cost of proposed production equipment: $720,000.<\/p>\n

Manufacturing overhead and selling and administrative costs are paid as incurred.<\/p>\n

Desired ending cash balance: $30,000.<\/p>\n

 <\/p>\n

Instructions<\/strong><\/p>\n

Using all the data presented above, do the following.<\/strong><\/p>\n

    \n
  1. Classify the costs as either product costs or period costs using a five-column table as shown below. Enter the dollar amount of each cost in the appropriate column and total each classification.<\/li>\n<\/ol>\n

     <\/p>\n

    \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Product Costs _____________<\/u><\/strong><\/p>\n

    Direct Direct Manufacturing<\/strong><\/p>\n

    Item \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Materials \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Labor Overhead Period Costs<\/u><\/strong><\/p>\n

    \u00a0<\/u><\/strong><\/p>\n

      \n
    1. Classify the costs as either variable or fixed costs. Assume there are no mixed costs. Enter the dollar amount of each cost in the appropriate column and total each classification. Use the format shown below. Assume that Utility costs\u2014factories are a fixed cost.<\/li>\n<\/ol>\n

      \u00a0<\/strong><\/p>\n

      Variable Fixed Total<\/strong><\/p>\n

      Item<\/u><\/strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Costs<\/u>\u00a0\u00a0 Costs<\/u>\u00a0\u00a0 Costs<\/u><\/strong><\/p>\n

        \n
      1. Prepare a schedule of cost of goods manufactured for the month of December 2013.<\/li>\n
      2. Determine the cost of producing a Headgear.<\/li>\n
      3. Identify the type of cost accounting system that MillerSafe Way Company is probably using at this time. Explain.<\/li>\n
      4. Under what circumstances might Miller use a different cost accounting system?<\/li>\n
      5. Compute the unit variable cost for a Headgear.<\/li>\n
      6. Compute the unit contribution margin and the contribution margin ratio.<\/li>\n
      7. Calculate the break-even point in units and in sales dollars.<\/li>\n
      8. Prepare the following budgets for the month of December 2013.<\/li>\n<\/ol>\n

        (a) Sales.<\/p>\n

        (b) Production.<\/p>\n

        (c) Direct materials.<\/p>\n

        (d) Direct labor.<\/p>\n

        (e) Selling and administrative expenses.<\/p>\n

        (f) Cash.<\/p>\n

        (g) Budgeted income statement.<\/p>\n

          \n
        1. Prepare a flexible budget for manufacturing costs for activity levels between 8,000 and 10,000 units, in 1,000-unit increments.<\/li>\n
        2. Identify one potential cause of direct materials, direct labor, and manufacturing overhead variances in the production of the Headgear.<\/li>\n
        3. Determine the cash payback period on the proposed production equipment purchase, assuming a monthly cash flow as indicated in the cash budget (requirement 10f).<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"

          Looking for MillerSafe Way Bicycle Headgear Company Essay Assignment Question to Answers solution? Gets Assignment writing Help, MBA Homework Solution & Essay Writing from PhD\/MBA experts at cost-effective rates? Acquire HD Quality research work with 100% Plagiarism free content \u2013 Get related Accounting Assignment Help & Topics written by native MBA Expert writers in USA, U.K. & Australia. MillerSafe Way Company Case Study Analysis The Business Situation MillerSafe Way Company manufactures a unique model of bicycle Headgear. The company began operations December 1, 2013. Its accountant quit the second week of operations, and the company is searching for a replacement. Read More …<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[655],"tags":[2445,2449,2442,2446,2444,2447,2443,2448],"_links":{"self":[{"href":"https:\/\/assignmenttask.com\/answers\/wp-json\/wp\/v2\/posts\/2398"}],"collection":[{"href":"https:\/\/assignmenttask.com\/answers\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttask.com\/answers\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttask.com\/answers\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttask.com\/answers\/wp-json\/wp\/v2\/comments?post=2398"}],"version-history":[{"count":3,"href":"https:\/\/assignmenttask.com\/answers\/wp-json\/wp\/v2\/posts\/2398\/revisions"}],"predecessor-version":[{"id":2401,"href":"https:\/\/assignmenttask.com\/answers\/wp-json\/wp\/v2\/posts\/2398\/revisions\/2401"}],"wp:attachment":[{"href":"https:\/\/assignmenttask.com\/answers\/wp-json\/wp\/v2\/media?parent=2398"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttask.com\/answers\/wp-json\/wp\/v2\/categories?post=2398"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttask.com\/answers\/wp-json\/wp\/v2\/tags?post=2398"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}