Problem 21-4A Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2017 are as follows: January February Sales $381,600 $424,000 Direct materials purchases 127,200 132,500 Direct labor 95,400 106,000 Manufacturing overhead 74,200 79,500 Selling and administrative expenses 83,740 90,100 All sales are on account. Collections are expected to be 50% in the month of sale, 30% in the first month following the sale, and 20% in the second month following the sale. Sixty percent (60%) of direct materials purchases are paid in cash in the month of purchase, and the balance due is paid in the month following the purchase. All other items above are paid in the month incurred except for selling and administrative expenses that include $1,060 of depreciation per month. Other data: 1. Credit sales: November 2016, $265,000; December 2016, $339,200. 2. Purchases of direct materials: December 2016, $106,000. 3. Other receipts: January—Collection of December 31, 2016, notes receivable $15,900; February—Proceeds from sale of securities $6,360. 4. Other disbursements: February—Payment of $6,360 cash dividend. The company’s cash balance on January 1, 2017, is expected to be $63,600. The company wants to maintain a minimum cash balance of $53,000. Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases for January and February. Expected Collections from Customers January February November $ $ December January February Total collections $ $ Expected Payments for Direct Materials January February December $ $ January February Total payments $ $ LINK TO TEXT Prepare a cash budget for January and February in columnar form. (Do not leave any answer field blank. Enter 0 for amounts.) COLTER COMPANY Cash Budget January February $ $ : : : : $ $

2-page report describing how an international company uses one of the Inventory Management techniques.

No plagiarism

accounting cost and management accounting

On January 1, 2020, McIlroy, Inc., acquired a 60 percent interest in the common stock of Stinson, Inc., for $384,600. Stinson's book value on that date consisted of common stock of $100,000 and retained earnings of $227,300. Also, the acquisition-date fair value of the 40 percent noncontrolling interest was $256,400. The subsidiary held patents (with a 10-year remaining life) that were undervalued within the company's accounting records by $77,800 and an unrecorded customer list (15-year remaining life) assessed at a $53,700 fair value. Any remaining excess acquisition-date fair value was assigned to goodwill. Since acquisition, McIlroy has applied the equity method to its Investment in Stinson account and no goodwill impairment has occurred. At year-end, there are no intra-entity payables or receivables.

Intra-entity inventory sales between the two companies have been made as follows:

The individual financial statements for these two companies as of December 31, 2021, and the year then ended follow:

(Note: Parentheses indicate a credit balance.)

1. Show how McIlroy determined the $423,463 Investment in Stinson account balance. Assume that McIlroy defers 100 percent of downstream intra-entity profits against its share of Stinson’s income.

2. Prepare a consolidated worksheet to determine appropriate balances for external financial reporting as of December 31, 2021.

Bailand Company purchased a building for $148,000 that had an estimated residual value of $8,000 and an estimated service life of 10 years. Bailand purchased the building 4 years ago and has used straight-line depreciation. At the beginning of the fifth year (before it records depreciation expense for the year), the following independent situations occur:

Bailand estimates that the asset has 8 years’ life remaining (for a total of 12 years). Prepare the journal entry on December 31 to record depreciation in the fifth year after the change in estimate. Ignore income taxes. Additional Instruction

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Prepare the journal entry on December 31 to record depreciation in the fifth year after the change in depreciation method. Additional Instruction

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Prepare the journal entries on December 31 to record the prior period adjustment for the error and depreciation in the fifth year. Ignore income taxes. Additional Instruction

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1. Cost of Units Transferred Out and Ending Work in Process

The costs per equivalent unit of direct materials and conversion in the Filling Department of Eve Cosmetics Company are $2.00 and $2.90, respectively. The equivalent units to be assigned costs are as follows:

The beginning work in process inventory had a cost of $3,220. Determine the cost of completed and transferred-out production and the ending work in process inventory. If required, round to the nearest dollar.

Answer all questions:

1) Purchases = $92,000

Materials Inventory, Beginning = $6000

Materials Inventory, Ending = $8000

Direct Labor = $25,000

Factory Overhead = $37,000

Work In Process, Beginning = $22,000

Work in Process, Ending = $18,500

Finished Goods Inventory, Beginning = $21,000

Finished Goods Inventory, Ending = $25,000

Sales = $257,000

Selling and Administrative Expenses = 479,000

Required: Which of the above accounts would appear on an Income Statement ?

2) Refer to #1. Which of the above accounts would appear on a Statement of Cost of Goods Manufactured ?

3) Refer to #1. Compute total manufacturing costs

4) Refer to #1. Compute prime costs at end of period

5) Refer to #1. Compute conversion costs

Salmont Corporation uses the FIFO method in its process costing system. The company reported 29,000 equivalent units of production for materials last month. The company's beginning work in process inventory consisted of 8,000 units, 30% complete with respect to materials. The ending work in process inventory consisted of 6,000 units, 60% complete with respect to materials. The number of units started during the month was:

• 27,800 units

• 27,800 units

• 29,400 units

• 25,800 units

Darden Corporation uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 19,800 units in its beginning work in process inventory that were 10% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $20,700. An additional 93,000 units were started into production during the month. There were 26,000 units in the ending work in process inventory of the Welding Department that were 70% complete with respect to conversion costs. A total of $845,880 in conversion costs were incurred in the department during the month. The cost per equivalent unit for conversion costs for the month is closest to:

• $10.800

• $8.253

• $9.981

• $10.086

Service Department Charges

In divisional income statements prepared for Demopolis Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll distributions, and the Purchasing Department costs are charged back on the basis of the number of purchase requisitions. The Payroll Department had expenses of $55,044, and the Purchasing Department had expenses of $28,160 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records:

a. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division.

b. Using the activity base information in (a), determine the annual amount of payroll and purchasing costs charged back to the Residential, Commercial, and Government Contract divisions from payroll and purchasing services. Do not round your interim calculations, round your answers to two decimal places, if required.

The net present value (NPV) and internal rate of return (IRR) methods of investment analysis are interrelated and are sometimes used together to make capital budgeting decisions.

Consider the case of Blue Hamster Manufacturing Inc.:

Last Tuesday, Blue Hamster Manufacturing Inc. lost a portion of its planning and financial data when both its main and its backup servers crashed. The company’s CFO remembers that the internal rate of return (IRR) of Project Delta is 11.3%, but he can’t recall how much Blue Hamster originally invested in the project nor the project’s net present value (NPV). However, he found a note that detailed the annual net cash flows expected to be generated by Project Delta. They are:

The CFO has asked you to compute Project Delta’s initial investment using the information currently available to you. He has offered the following suggestions and observations:

1.Given the data and hints, Project Delta’s initial investment is ?

2. its NPV is ? (rounded to the nearest whole dollar).

A project’s IRR will   if the project’s cash inflows increase, and everything else is unaffected.

Jacob is a member of WCC (an LLC taxed as a partnership). Jacob was allocated $90,000 of business income from WCC for the year. Jacob’s marginal income tax rate is 37 percent. The business allocation is subject to 2.9 percent of self-employment tax and 0.9 percent additional Medicare tax. (Round your intermediate calculations to the nearest whole dollar amount.)

a. What is the amount of tax Jacob will owe on the income allocation if the income is not qualified business income?

b. What is the amount of tax Jacob will owe on the income allocation if the income is qualified business income (QBI) and Jacob qualifies for the full QBI deduction?

How can a business identify which products it makes have the highest margin, and therefore seek to concentrate more on the sale of those products vs other products they also may sell? For example, how could a restaurant gather/use this information to determine which specific items to try to target in selling to customers?

Problem 21A-1 a-c

The following facts pertain to a non-cancelable lease agreement between Faldo Leasing Company and Swifty Company, a lessee.

The asset will revert to the lessor at the end of the lease term. The lessee uses the straight-line amortization for all leased equipment.

Prepare an amortization schedule that would be suitable for the lessee for the lease term.

Prepare all of the journal entries for the lessee for 2017 and 2018 to record the lease agreement, the lease payments, and all expenses related to this lease. Assume the lessee’s annual accounting period ends on December 31

Suppose Swifty received a lease incentive of $5,000 from Faldo Leasing to enter the lease. How would the initial measurement of the lease liability and right-of-use asset be affected?

What if Swifty prepaid rent of $5,000 to Faldo?

If a fraudster does not have legitimate access to check stock, what are three ways blank checks can be fraudulently obtained? What measures could an organization take to prevent the three ways you mention?

Monica Orgeta, president and owner of Star Enterprises, applied for a $250,000 loan from Carmel National Bank. The bank requested financial statements from Star Enterprises as a basis for granting the loan. Monica has told her accountant to provide the bank with a balance sheet. Monica has decided to omit the other financial statements because there was a net loss during the past year.

-Is Monica behaving in a professional manner by omitting some of the financial statements?

-What types of information about their businesses would owners be willing to provide bankers?

-What types of information would owners not be willing to provide?

-What common interests are shared by bankers and business owners?

-As the loan officer for Carmel National Bank, would you accept only the balance sheet in considering lending funds to Star or any business?