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frez [133]
3 years ago
14

PEZ Candy Inc. produces the popular small candy that is dispensed in collectible flip-top dispensers. In the United States, PEZ

candies are produced in a factory in Connecticut. Over 3 billion of the small brick-shaped candies are consumed in the U.S. each year. PEZ candy is made from sugar, fruit flavoring, coloring, and corn syrup; the ingredients are put under pressure to form the hard tablets. About 95% of a PEZ tablet is sugar. The Connecticut location also houses PEZ's US headquarters and the PEZ Visitor Center. The Visitor Center offers birthday parties that include a staff member to host the party, goodie bags, pizza, soft drinks, and other options. When a family wants to have a birthday party, the family will work with PEZ staff to customize the birthday party.
1. Would PEZ Candy Inc. be more likely to use job costing or process costing for the manufacture of its PEZ candies? Why?
2. Give an example of each of the following types of costs that PEZ Candy Inc. would be likely to incur in the manufacture of its PEZ candies:
a. Direct material
b. Direct labor
c. Manufacturing overhead
i. Indirect materials
ii. Indirect labor
iii. Other manufacturing overhead
3. Would PEZ Candy Inc. be more likely to use job costing or process costing to calculate the cost of one particular birthday party hosted at the PEZ Visitor Center? Why?
Business
1 answer:
aleksandrvk [35]3 years ago
6 0

Answer:

PEZ Candy Inc.

1. PEZ Candy Inc. would be more likely to use process costing for the manufacture of its PEZ candies.

The reason is that the manufacturing of candies involves continuous processing of materials that results into candies.  The processes are not customizable for separate orders.

2. PEZ Candy Inc. would incur these types of costs in the manufacture of its PEZ candies:

a. Direct material = sugar

b. Direct labor = wages of factory workers

c. Manufacturing overhead = utilities expenses

i. indirect materials = cleaning supplies

ii. indirect labor = factory supervisor's salary

iii. other manufacturing overhead = depreciation expense of factory equipment

3. PEZ Candy Inc. would be more likely to use job costing to calculate the cost of one particular birthday party hosted at the PEZ Visitor Center.  The reason is that it is a specific event.  It does not involve a continuous process.

Explanation:

a) Data and Calculations:

Materials for PEZ candy include:

Direct materials:

Sugar (95%)

Fruit flavoring

Coloring

Corn syrup

Product = PEZ candies

Services: customized birthday parties

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Answer:

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Dr Lease receivable 6,652

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Dr Cash 200,000

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2) to calculate the effective rate we can use the present value of an annuity due formula

PV annuity due factor, 3 periods, ?% = present value of lease receivable / annual payment = $556,652 / $200,000 = 2.78326

Now we must use an annuity due table to determine a possible rate. In this case, the exact rate is 8%.

3) December 31, 2018, interest receivable on lease contract

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5 0
3 years ago
Last year, Courtney Company reported sales of $640,000, a contribution margin of $160,000, and an operating loss of ($40,000). B
Elanso [62]

Answer:

 Break-even sales         =  $800,000.

Explanation:

<em>The beak-even point is the units of products to be sold or number of customers to be served to enable a business to cover exactly its total cost from the revenue. At the break-even point, the business makes no profit or no loss because the contribution from sales exactly equals the total fixed cost</em>

<em>Break-even in sales revenue = Total fixed cost/Contribution margin</em>

<em>Contribution margin (%) = Contribution/ sales ×  100</em>

                                        = 160,000/640,000

                                        = 0.25 ×  100

                                        = 25%

<em>Fixed cost =   Contribution -   operating income</em>

                                    = 160,000- -( 40,000)

                             = 160,000 + 40,000

                             = 200,000

<em>Break-even point sales = 200,000/25%</em>

                                       =  $800,000.

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3 years ago
All of the following are examples of fiscal policy except __________.
timama [110]

The given options are all examples of fiscal policy enacted by government except d. lowering the interest rate.

<h3>What is fiscal policy?</h3>

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They do so by either spending, reducing spending, or altering tax rates. Fiscal policy does not directly influence interest rates as this is done by monetary policy.

Find out more on fiscal policy at brainly.com/question/6583917.

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Answer:

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Explanation:

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This can be found as:

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#SPJ1

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