1. During April, Wiggins Company sold 900 units of Product X for $10 per unit.  Its beginning inventory, purchases, and sales during the month were as follows:

April   1          Beginning Inventory   200 units @ $1

            5          Purchases                    200 units @ $2

            8          Sales                            300 units

            10        Purchases                    200 units @ $3

            15        Purchases                    200 units @ $4

            18        Sales                            300 units

            20        Purchases                    200 units @ $5

            25        Purchases                    200 units @ $6

            28        Sales                            300 units

Compute the proper cost to be assigned to ending inventory, cost of goods sold, and gross profit under each of these methods using the periodic system:

(a) Average cost, (b) FIFO, and (c) LIFO.

Must show calculations

V & T Faces, Inc., would like to open a retail store in Miami. The initial investment to purchase the building is $420,000, and an additional $50,000 in working capital is required. Since this store will be operating for many years, the working capital will not be returned in the near future.

V & T Faces expects to remodel the store at the end of 3 years at a cost of $100,000. Annual net cash receipts from daily operations (cash receipts minus cash payments) are expected to be as follows:

The company’s required rate of return is 13 percent. Assume management decided to limit the analysis to 7 years.

1. What is the weakness of using the payback period method to evaluate long-term investments?
2. Assume the manager of the company wanted to live in Miami and intentionally inflated the projected annual cash receipts so that the proposal would be accepted. The proposal would otherwise have been rejected. Explain how the company’s use of a post audit would help to prevent this type of unethical behavior.

Question 2

Motswatswa (Pty) Ltd manufactures a special make of lounge suite covers and has compiled the following data in order to put together their first quarter operating budget for 2020:

January February March April

Sales (units) 35,000 31,000 38,000 29,000

Additional information:

Motswatswa sells each cover for R95.

Company policy is to have 30% of next month's sales (in units) in ending finished goods inventory. This policy was met in December.

Company policy is to have 40% of next month's production needs in ending raw materials inventory. The production needs for April is 95,500. This policy was met in December. It takes three meters of material to produce each cover and the cost is R2.75/meters.

Required:

A. Prepare a sales budget for the January, February and March and for the first quarter in total. (4)

B. Prepare a production budget for January, February and March and for the first quarter in total. (8)

C. Prepare a direct material purchases budget for January, February and March and for the first quarter in total. (12)

Complete the following partial worksheet for Pat Inc. and subsidiary Slinger Company for the first year subsequent to acquisition intercompany bonds, 20X4 Pat Inc. and Subsidiary Slinger Company Partial Consolidated Worksheet For the Year Ended December 31, 20X4 Trial Balance Eliminations and Adjustments Pat Slinger Dr. Cr. Interest receivable 8,000 Investments in Slinger bonds 99,000 Interest payable (8,000) Bonds payable (100,000) Premium on bonds payable (200) Interest income (9,000) Interest expense 7,800 Elimination and Adjustments:

(B1) Eliminate the intercompany bonds and the applicable interest revenue and expense. Record the adjustment to retained earnings

(B2) Eliminate the intercompany interest payable and receivable.

At December 31, 2020, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances as follows

Depreciation methods and useful lives:
Buildings—150% declining balance; 25 years.
Equipment—Straight line; 10 years.
Automobiles and trucks—200% declining balance; 5 years, all acquired after 2017.
Leasehold improvements—Straight line.
Land improvements—Straight line.

Depreciation is computed to the nearest month and residual values are immaterial. Transactions during 2021 and other information:

1. On January 6, 2021, a plant facility consisting of land and building was acquired from King Corp. in exchange for 35,000 shares of Cord's common stock. On this date, Cord's stock had a fair value of $60 a share. Current assessed values of land and building for property tax purposes are $255,000 and $595,000, respectively.
2. On March 25, 2021, new parking lots, streets, and sidewalks at the acquired plant facility were completed at a total cost of $252,000. These expenditures had an estimated useful life of 12 years.
3. The leasehold improvements were completed on December 31, 2017, and had an estimated useful life of eight years. The related lease, which would terminate on December 31, 2023, was renewable for an additional four-year term. On April 30, 2021, Cord exercised the renewal option.
4. On July 1, 2021, equipment was purchased at a total invoice cost of $335,000. Additional costs of $11,000 for delivery and $60,000 for installation were incurred.
5. On September 30, 2021, Cord purchased a new automobile for $13,500.
6. On September 30, 2021, a truck with a cost of $25,000 and a book value of $11,000 on date of sale was sold for $12,500. Depreciation for the nine months ended September 30, 2021, was $2,475.
7. On December 20, 2021, equipment with a cost of $22,000 and a book value of $3,225 at date of disposition was scrapped without cash recovery

For each asset category, prepare a schedule showing depreciation or amortization expense for the year ended December 31, 2021. (Do not round intermediate calculations. Round your final answers to nearest whole dollar.)

1. Below is a trial Balance for Wilson Mowing Service as of December 31. Use it to answer the questions 2 - 8

   	Account	DR	CR
   	Cash	$6800
   	Accounts Receivable	2500
   	Supplies	1000
   	Truck	8500
   	Equipment	6300
   	Accumulated Depreciation		$2000
   	Trademark	1000
   	Accounts Payable		3500
   	Salary Payable		200
   	Mortgage Payable		8200
   	Capital		3000
   	Drawing	12000
   	Service Revenue		31900
   	Salary Expense	4500
   	Repairs Expense	800
   	Supplies Expense	1600
   	Gasoline Expense	3800
   	Total	$48,800	$48,800

   Other information. The company is brand new. The owner contributed the full $3000 that is in the capital account this year.

2. Use the Trial Balance above. Prepare the "R" closing entries

3. Prepare the "E" closing entries

4. Prepare the "I" Closing Entry

5. Prepare the "D" Closing Entry

6. Using the Adjusted Trial Balance -- Prepare the Income Statement. Using the a table.

7. Using the Adjusted Trial Balance -- Prepare the Statement of Owner's Equity with a table.

8. Use the adjusted Trial Balance and Prepare a Classified Balance Sheet.

Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company’s balance sheet as of June 30th is shown below:

Beech’s managers have made the following additional assumptions and estimates:

1. Estimated sales for July, August, September, and October will be $230,000, $250,000, $240,000, and $260,000, respectively.

2. All sales are on credit and all credit sales are collected. Each month’s credit sales are collected 35% in the month of sale and 65% in the month following the sale. All of the accounts receivable at June 30 will be collected in July.

3. Each month’s ending inventory must equal 30% of the cost of next month’s sales. The cost of goods sold is 70% of sales. The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% in the month following the purchase. All of the accounts payable at June 30 will be paid in July.

4. Monthly selling and administrative expenses are always $42,000. Each month $7,000 of this total amount is depreciation expense and the remaining $35,000 relates to expenses that are paid in the month they are incurred.

5. The company does not plan to borrow money or pay or declare dividends during the quarter ended September 30. The company does not plan to issue any common stock or repurchase its own stock during the quarter ended September 30.

Widmer Watercraft’s predetermined overhead rate for the year 2017 is 200% of direct labor. Information on the company’s production activities during May 2017 follows. Purchased raw materials on credit, $220,000. Materials requisitions record use of the following materials for the month. Job 136 $49,000 Job 137 32,500 Job 138 20,000 Job 139 22,600 Job 140 6,600 Total direct materials 130,700 Indirect materials 20,500 Total materials used $151,200 Paid $15,250 cash to a computer consultant to reprogram factory equipment. Time tickets record use of the following labor for the month. These wages were paid in cash. Job 136 $12,300 Job 137 10,700 Job 138 37,900 Job 139 39,400 Job 140 3,200 Total direct labor 103,500 Indirect labor 24,000 Total $127,500 Applied overhead to Jobs 136, 138, and 139. Transferred Jobs 136, 138, and 139 to Finished Goods. Sold Jobs 136 and 138 on credit at a total price of $545,000. The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance). Depreciation of factory building $69,500 Depreciation of factory equipment 38,000 Expired factory insurance 10,000 Accrued property taxes payable 36,500 Applied overhead at month-end to the Work in Process Inventory account (Jobs 137 and 140) using the predetermined overhead rate of 200% of direct labor cost. rev: 02_01_2017_QC_CS-77139 Problem 19-3A Part 2 2. Prepare journal entries to record the events and transactions a through i.

Question 2

Access the most recent Form 10-K (year 2017) for both Exxon Mobil and Chevron and answer the following questions.

Required:

a. Determine whether each company’s foreign operations have a predominant functional currency. Discuss the implication this has for the comparability of financial statements between the two companies.

b. Determine the amount of translation adjustment, if any, reported in other comprehensive income in each of the three most recent years. Explain the sign (positive or negative) of the translation adjustment in each of the three most recent years. Compare the relative magnitude of the translation adjustments between the two companies.

The following information is for Sunland Auto Supplies:

The total dollar amount of assets to be classified as current assets is

$502000.

$138000.

$222000.

$360000.

Eaton Ross Puppet Company acquired a new plastic molding machine at the beginning of the current year at a cost of $ 450 comma 000. The asset has a 6​-year useful life for financial reporting purposes and is depreciated on a​ straight-line basis with no residual value expected at the end of its useful life. The company uses the​ double-declining balance method on its income tax returns. The company is subject to a 35​% tax rate. Compute the deferred tax portion of the income tax expense for the first 2 years. Complete the table below to compute the​ straight-line book depreciation and​ double-declining tax depreciation method through year 2 to determine the​ book-tax difference.​ (Round your calculations to the nearest​ dollar.)

1)During 2020, Kevin received the following items:

$5,000 unemployment compensation

$10,000 inheritance

$20,000 life insurance proceeds on account of mother’s death

How much is Kevin required to include in gross income?

2)

Len Landlord owns an apartment building. During the year he received:

Rent payments………………….$10,000

Security deposit………………...     2,500

Advance rent payment………….     5,000

How much must Len include in income?

The Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:

Each unit requires 0.25 direct labor-hours and direct laborers are paid $13.00 per hour.

In addition, the variable manufacturing overhead rate is $1.90 per direct labor-hour. The fixed manufacturing overhead is $88,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $28,000 per quarter.

Required:

1. Calculate the company’s total estimated direct labor cost for each quarter of the upcoming fiscal year and for the year as a whole.

2&3. Calculate the company’s total estimated manufacturing overhead cost and the cash disbursements for manufacturing overhead for each quarter of the upcoming fiscal year and for the year as a whole.