Do you think that investors are getting concerned that SOX has gotten stale and is not as much of a threat for bad behavior? Why or why not?

The following data from the just completed year are taken from the accounting records of Mason Company:

Required:

1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials.

2. Prepare a schedule of cost of goods sold. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold.

3. Prepare an income statement.

• Required 1

Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials.

Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials.

Prepare a schedule of cost of goods sold. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold.

Prepare an income statement.

1. Perpetual Inventory Using FIFO

   Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows:

   Inventory		Purchases		Sales
   May 1	3,600 units at $32	May 10	1,800 units at $34	May 12	2,520 units
   		May 20	1,620 units at $36	May 14	2,160 units
   				May 31	1,080 units

   Assume that the business maintains a perpetual inventory system, costing by the first-in, first-out method. Determine the cost of merchandise sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 3. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Merchandise Sold Unit Cost column and in the Inventory Unit Cost column.

   Schedule of Cost of Merchandise Sold
   FIFO Method
   Prepaid Cell Phones
   Date	Purchases Quantity	Purchases Unit Cost	Purchases Total Cost	Cost of Merchandise Sold Quantity	Cost of Merchandise Sold Unit Cost	Cost of Merchandise Sold Total Cost	Inventory Quantity	Inventory Unit Cost	Inventory Total Cost
   May 1								$	$
   May 10		$	$
   May 12					$	$
   May 14
   May 20
   May 31
   May 31	Balances					$			$

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1. Perpetual Inventory Using LIFO

   Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows:

   Inventory		Purchases		Sales
   May 1	4,000 units at $21	May 10	2,000 units at $23	May 12	2,800 units
   		May 20	1,800 units at $25	May 14	2,400 units
   				May 31	1,200 units

   a. Assuming that the perpetual inventory system is used, costing by the LIFO method, determine the cost of merchandise sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 4. Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Merchandise Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column.

   Schedule of Cost of Merchandise Sold
   LIFO Method
   Prepaid Cell Phones
   Date	Quantity Purchased	Purchases Unit Cost	Purchases Total Cost	Quantity Sold	Cost of Merchandise Sold Unit Cost	Cost of Merchandise Sold Total Cost	Inventory Quantity	Inventory Unit Cost	Inventory Total Cost
   May 1								$	$
   May 10		$	$
   May 12					$	$
   May 14
   May 20
   May 31
   May 31	Balances					$			$

   b. Based upon the preceding data, would you expect the inventory to be higher or lower using the first-in, first-out method?
   

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Post an analysis of the role of innovation in business strategy development within a global context. Your analysis should include the following: A description of P&G’s innovation, including the underlying strategy and specific context for its current success An analysis of the impact of geographic location and surrounding business communities on innovation and strategy development As a global change agent, explain the importance of researching global implementation of innovative business ideas or strategies from the research literature. Be sure to include relevant scholarly examples of successful or unsuccessful global implementations and how they can further influence the understanding of innovation as a component of business strategy.

Cash Budget

The controller of Sonoma Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information:

The company expects to sell about 10% of its merchandise for cash. Of sales on account, 60% are expected to be collected in the month following the sale and the remainder the following month (second month following sale). Depreciation, insurance, and property tax expense represent $8,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in September, and the annual property taxes are paid in November. Of the remainder of the manufacturing costs, 85% are expected to be paid in the month in which they are incurred and the balance in the following month.

Current assets as of May 1 include cash of $45,000, marketable securities of $64,000, and accounts receivable of $140,600 ($103,000 from April sales and $37,600 from March sales). Sales on account for March and April were $94,000 and $103,000, respectively. Current liabilities as of May 1 include $11,000 of accounts payable incurred in April for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of $18,000 will be made in June. Sonoma’s regular quarterly dividend of $8,000 is expected to be declared in June and paid in July. Management wants to maintain a minimum cash balance of $35,000.

Required:

1. Prepare a monthly cash budget and supporting schedules for May, June, and July. Input all amounts as positive values except overall cash decrease and deficiency which should be indicated with a minus sign.

2. The budget indicates that the minimum cash balance   be maintained in July. This situation can be corrected by   and/or by the   of the marketable securities, if they are held for such purposes. At the end of May and June, the cash balance will   the minimum desired balance.

Joseph is considering a used car currently valued at $12,000. He can get an interest rate of 2.5% annually for a 5 year car loan. Joseph currently has $14,000 in a savings account and wants to use some of his savings for a down payment. If Joseph decided to put $3,000 down as a down payment, what are his monthly payments? If Joseph decided to put $5,000 down as a down payment, what are his monthly payments? How much does Joseph save in interest if he puts $5,000 down compared to $3,000? If Joseph decides to pay for the whole thing what could he potentially save in interest payments? If Joseph can invest $12,000 in an 8% annual investment. Alternatively he is considering just paying cash for the car leaving him no payment. Which would you recommend and why? Include the numbers!!

Critically evaluate the suggestion that with the recent emergence of Integrated Reporting we can readily recognise the vanguard role that managerial accounting will play in reshaping financial reporting.

The following information is available for Park Valley Spa for July Year 1:

The following is a list of checks and deposits recorded on the books of the Park Valley Spa for July Year 1:

Other Information

1. Check no. 2350 was outstanding from June.
2. The credit memo was for collection of notes receivable.
3. All checks were paid at the correct amount.
4. The debit memo was for printed checks.
5. The June 30 bank reconciliation showed a deposit in transit of $1,104.
6. The unadjusted Cash account balance at July 31 was $14,603.

Required
a. Prepare the bank reconciliation for Park Valley Spa at the end of July.
b. Record in general journal form any necessary entries to the Cash account to adjust it to the true cash balance.
  

A. record the collection of notes recievable

B. record cash paid for office supplies expenses

The Inventory at July 1st and the cost charged to work in process department B during July for the Parker Corporation are as follows:

32,000 units, 3/4 completed...................................1,312,000

From Department A 174,000 units.........................1,566,000

Direct Labor............................................................5,848,000

Factory Overhead...................................................1,292,000

During July, all direct materials are transferred from Department A, the units in process at July 1st were completed, and of the 174,000 units entering the Department, all were completed except 36,000 units which were 2/3 completed. Inventories are costed by the FIFO method.

Use the 5 Steps to prepare a cost of production report:

1. Units to be accounted for: Beginning WIP + Transferred In = Total

2.Units to be accounted for: Beginning WIP + Started and Completed + Ending WIP = Total

3. Equivalent Units of Production & Cost per EUP

4.Cost to be accounted for: Beg. WIP + Materials + Direct Labor + Overhead = Total Cost to be accounted for

5. Cost accounted for: Total cost of beginning WIP + Total cost for started and completed + Total Cost for ending WIP = Total cost accounted for

Cicchetti Corporation uses customers served as its measure of activity. The following report compares the planning budget to the actual operating results for the month of December: Cicchetti Corporation Comparison of Actual Results to Planning Budget For the Month Ended December 31 Actual Results Planning Budget Variances Customers served 34,000 29,500 Revenue ($4.8q) $ 164,000 $ 141,600 $ 22,400 F Expenses: Wages and salaries ($37,100 + $1.6q) 94,600 84,300 10,300 U Supplies ($0.6q) 20,000 17,700 2,300 U Insurance ($14,100) 14,350 14,100 250 U Miscellaneous expense ($7,100 + $0.4q) 22,450 18,900 3,550 U Total expense 151,400 135,000 16,400 U Net operating income $ 12,600 $ 6,600 $ 6,000 F

Prepare the company's flexible budget performance report for December. Select each variance as favorable (F), unfavorable (U) or "None".

Tough Steel, Inc. is a processor of carbon, aluminum, and stainless steel products. The firm is considering replacing an old stainless steel tube-making machine for a more cost-effective machine that can meet the firm’s quality standards. The old machine was acquired 2 years ago at an installed cost of $500,000. It has been depreciated under the MACRS’s 5-year recovery period, and has a remaining economic life of 5 years. It can be sold today for $350,000 before taxes, but if the firm decides to keep it, it can be sold for $100,000 before taxes at the end of year 5. The first option is Machine A, which can be purchased for $600,000, but will require $30,000 in installation costs. This machine would be depreciated under the MACRS’s 3-year recovery period. At the end of its economic life, the machine will have a salvage value of $350,000 before taxes. This machine would require an investment in net working capital of $100,000. The second option is Machine B, which can be purchased for $550,000, but requires $20,000 in installation costs. This machine would be depreciated under the MACRS’s 5-year recovery period. At the end of its economic life, the machine would have a salvage value of $330,000 before taxes. This machine requires no investment in net working capital. The firm has estimated the following EBIT for all three machines: The firm’s WACC is 14% and its tax rate is 40%. Determine which machine is more profitable for the company based on the payback period, discounted payback period, net present value, profitability index, internal rate of return, and modified internal rate of return. EBIT: Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Old Machine $90,000 $90,000 $120,000 $150,000 $150,000 Machine A $90,000 $10,000 $150,000 $230,000 $270,000 Machine B $120,000 $20,000 $120,000 $200,000 $200,000

Bottom line refers to which line on the income statement?

• A. Operating income

• B. Retained earnings

• C. Net income, net profit, or net earnings

• D. Net worth

1. Piper Wells is single and received the items and amounts of income shown below during 2015, as shown below. Determine the marginal tax rate applicable to each item. Note that if the item is not taxable, the marginal rate is 0.

Salary $30,000

Dividends 800

Gift from mother 500

Child support from ex-husband 3,600

Interest on savings account 250

Rental property 900

Loan from bank 2,000

Interest on state government bonds 300