Auditors should use emphasis of a matter paragraphs to draw attention to the fact that a required disclosure has been omitted from the financial statements. True or False?

A city orders a new computer for its General Fund at an anticipated cost of $95,100. Its actual cost when received is $96,680. Payment is subsequently made.

a. Prepare all required journal entries for both fund and government-wide financial statements. (Select the appropriate fund for each situation when required. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Come-Clean Corporation produces a variety of cleaning compounds and solutions for both industrial and household use. While most of its products are processed independently, a few are related, such as the company’s Grit 337 and its Sparkle silver polish.

Grit 337 is a coarse cleaning powder with many industrial uses. It costs $1.60 a pound to make, and it has a selling price of $7.00 a pound. A small portion of the annual production of Grit 337 is retained in the factory for further processing. It is combined with several other ingredients to form a paste that is marketed as Sparkle silver polish. The silver polish sells for $5.00 per jar.

This further processing requires one-fourth pound of Grit 337 per jar of silver polish. The additional direct costs involved in the processing of a jar of silver polish are:

Overhead costs associated with processing the silver polish are:

The production supervisor has no duties other than to oversee production of the silver polish. The mixing equipment is special-purpose equipment acquired specifically to produce the silver polish. Its resale value is negligible and it does not wear out through use.

Direct labor is a variable cost at Come-Clean Corporation.

Advertising costs for the silver polish total $2,500 per month. Variable selling costs associated with the silver polish are 5% of sales.

Due to a recent decline in the demand for silver polish, the company is wondering whether its continued production is advisable. The sales manager feels that it would be more profitable to sell all of the Grit 337 as a cleaning powder.

Required:

1. What is the incremental contribution margin per jar from further processing of Grit 337 into silver polish? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

2. What is the minimum number of jars of silver polish that must be sold each month to justify the continued processing of Grit 337 into silver polish? (Round your intermediate calculations to 2 decimal places.)

Number of jars?

1. Which of the following is not an advantage of decentralization?
   1. Lower level managers are trained for increased responsibilities
   2. Managers are motivated to improve productivity
   3. Upper-level managers are able to concentrate on important decisions
   4. All of these are advantages of decentralization

2. When comparing EOQ and JIT inventory systems, which of the following statements is false?
   1. The EOQ system assumes a variable order quantity
   2. The EOQ system focuses on acquisition and holding costs
   3. JIT argues that inventory investments should be minimized
   4. The EOQ approach takes the viewpoint that some inventory is necessary
   5. JIT argues that safety stocks are unnecessary

3. Which of the following statements regarding responsibility accounting is not correct?
   1. It is most effective in a centralized business structure where senior managers exert control over various segments of a company’s operations
   2. It calls for the preparation of responsibility reports listing the budgeted and actual revenue and/or expense items over which the manager has control
   3. It requires top management to focus on long-term planning for the entire company and delegates the authority for implementing that plan to lower levels of management
   4. It calls for the preparation of report containing detailed information regarding the performance of a responsibility center

4. A factory that makes a part has no idle capacity. The factory’s opportunity cost of making this part is equal to?
   1. The fixed manufacturing cost per unit
   2. Zero
   3. The total manufacturing cost per unit
   4. The contribution margin per unit of a product that is not made
   5. The variable manufacturing cost per unit

The following data are taken from the financial statements of Sigmon Inc. Terms of all sales are 2/10, n/45.

a. For 20Y2 and 20Y3, determine (1) the accounts receivable turnover and (2) the number of days' sales in receivables. Round answers to one decimal place. Assume a 365-day year.

b. The collection of accounts receivable has improved . This can be seen in both the increase  in accounts receivable turnover and the decrease  in the collection period.

A value stream has three activities and two products. The units produced and shipped per week are 50 of the deluxe model (Model A) and 150 of the basic model (Model B). The resource consumption patterns are shown as follows: Model A Model B Costs of Value- Stream Activities Cell manufacturing 2,360 min. 7,080 min. $ 94,400 Engineering 65 hrs. 221 hrs. 24,596 Testing 105 hrs. 273 hrs. 26,838 Total $ 145,834

Required:

1. Calculate the ABC product cost for Models A and B. If required, round your answers to the nearest cent.

Product Cost Per Unit

Model A $ per unit

Model B $ per unit

2a. Calculate the value-stream average product cost. If required, round your answer to the nearest cent.
$ per unit

Bixby Carpet Manufacturing Inc. uses a process costing system and calculates per-unit costs using the weighted average method. The following data relates to the first production department (the Weaving Department) of its Rayon carpet brand for the month of November.
Beginning Work in Process Inventory: 600 units, 40% complete Ending Work in Process Inventory: 800 units, 50% complete Units started: 10,400 units
All direct materials are added at the beginning of the process, and conversion costs are assumed to be incurred uniformly throughout. The cost of direct materials in beginning Work in Process Inventory was $42,000, and conversion costs in beginning Work in Process were $10,600.
During the month, $220,000 of direct materials were added to production. Direct labor for the period was $46,000 and manufacturing overhead was $17,600. Over the course of the month, 5,100 units were completed and transferred out of the Weaving Department to the Finishing Department.
The total conversion costs assigned to the units transferred out is

Highlights the different models used for SMEs transactions, and discuss differences between the models and General Accepted Accounting Principles (GAAP).

Exercise 7-15 Manufacturing: Direct materials, direct labor, and overhead budgets LO P1

MCO Leather Goods manufactures leather purses. Each purse requires 3 pounds of direct materials at a cost of $4 per pound and 0.7 direct labor hours at a rate of $10 per hour. Variable manufacturing overhead is charged at a rate of $2 per direct labor hour. Fixed manufacturing overhead is $11,000 per month. The company’s policy is to end each month with direct materials inventory equal to 20% of the next month’s materials requirement. At the end of August the company had 4,580 pounds of direct materials in inventory. The company’s production budget reports the following.

(1) Prepare direct materials budgets for September and October.
(2) Prepare direct labor budgets for September and October.
(3) Prepare factory overhead budgets for September and October.

Planet Corporation acquired 90 percent of Saturn Company’s voting shares of stock in 20X1. During 20X4, Planet purchased 40,000 Playday doghouses for $24 each and sold 25,000 of them to Saturn for $30 each. Saturn sold 18,000 of the doghouses to retail establishments prior to December 31, 20X4, for $45 each. Both companies use perpetual inventory systems.

Required:
a. Prepare all journal entries Planet recorded for the purchase of inventory and resale to Saturn Company in 20X4. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Record the purchase of inventory.

Record the sales of the Playday doghouses.

Record the cost of goods sold.

b. Prepare the journal entries Saturn recorded for the purchase of inventory and resale to retail establishments in 20X4. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Record the purchase of inventory.

Record the sales of the Playday doghouses.

Record the cost of goods sold.

c. Prepare the worksheet consolidation entry(ies) needed in preparing consolidated financial statements for 20X4 to remove the effects of the intercompany sale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Record the consolidation entry.

Bramble, Inc. prepared the following cash budget for the fourth quarter. Fill in the missing amounts, assuming that Bramble desires to maintain a $15,000 minimum monthly cash balance and all equipment was purchased during December. Any required borrowings and repayments must be made in even increments of $1,000. (Enter answers in necessary fields only. Leave other fields blank. Do not enter 0.)

Question: Describe two limitations, both actual and potential of “service efforts and accomplishments” (SEA) indicators, and describe how they might be overcome.

Toronto Corporation records its sales at their gross amount. On December 31, 2015, Toronto Corporation’s balance sheet included the following:

Trade accounts receivable                                $630,000

Allowance for doubtful accounts                       (49,500)

Accounts receivable, net                         $580,500

During 2016, the following transactions occurred:

1. New sales on account                                                                         $967,000
2. Collections on past credit sales                                                      913,000
3. Accounts receivable written off as uncollectible                                31,400
4. Collection of accounts previously written off as uncollectible                 1,200
5. At year-end, the company estimated that a balance of $45,700

is needed in its allowance for doubtful accounts

Required:

1. Prepare journal entries to record each of the above transactions

2. Compute the net realizable value of accounts receivable that should appear on Toronto’s December 31, 2016 balance sheet

Part B

Maxwell Corporation factored, with recourse, $300,000 of accounts receivable with Huskie Financing. The finance charge is 4%, and 6% was retained to cover sales discounts, sales returns, and sales allowances. Maxwell estimates the recourse obligation at $5,800.

Required:

Prepare Maxwell’s journal entry to record this factoring of its accounts receivable.

Part C

On December 31, 2016, Geosue Company finished consultation services for Nolan Corporation and accepted in exchange a promissory note with a face value of $900,000, a due date of December 31, 2019, and a stated rate of 7%, with interest receivable at the end of each year. The fair value of the services is not readily determinable and the note is not readily marketable. However, a similar note is considered to have a market rate of interest of 9%.

Required:

1. Determine the present value of the note.

2. Prepare an effective interest amortization schedule for Geosue relative to this note. (Round to whole dollars.)

Part D

Nicholas Company loaned $68,587 to Nathan, Inc. in exchange for Nathan’s 2-year, $80,000, zero-interest-bearing note. Nathan’s incremental borrowing rate for comparable debt is 8%.

Required:

1. Prepare an effective interest amortization schedule for Nicholas relative to this note. (Round to whole dollars.)

2. Prepare Nicholas’ journal entries for the initial loan transaction, recognition of interest each year, and the collection of the note at maturity.

Our Module 2 discussion will focus on familiarizing yourself with someone in the accounting profession.

The purpose of this assignment is to get a picture of the various roles managers play and the skills required to perform effectively in an accounting role.

You should choose to interview someone who has been in the accounting field for at least 2 years, employed full time. Please use the questions below, but feel free to add your own. Ask frequently for examples which illustrate the interviewee’s experience. When an interviewee tells you an interesting story, make sure to ask further questions so you understand how this experience is related to their work and their skills.

Take notes during the interview and then summarize what you learned. Do not provide a verbatim account of the interview! Rather describe what you learned about he accounting field, the skills needed to be successful, what challenges they face, etc. Start the interview by having the individual describe their organization, their specific role and their background briefly. Then use these questions to follow up:

1. Describe a typical day at work.

2. What are the critical skills needed to be successful in your line of work?

3. Name one recent change you had to deal with at work and describe how you managed that change.

4. What do you like best about your work in the field of accounting? Like the least?

5. What would you like to learn more about that would help you to continue to improve in your job?

6. What one piece of "advice" would you give to someone considering a career in accounting?

Summarize what you learned by conducting this interview. Start your posting by briefly describing your interviewee's role and the organization they work for as well as their background (education/formal training, previous jobs, etc.). Then, list each question and provide your interviewee's answer.: