Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departments—Molding and Fabrication. It started, completed, and sold only two jobs during March—Job P and Job Q. The following additional information is available for the company as a whole and for Jobs P and Q (all data and questions relate to the month of March):

	Molding			Fabrication			Total
Estimated total machine-hours used		2,500			1,500			4,000
Estimated total fixed manufacturing overhead	$	11,250		$	15,750		$	27,000
Estimated variable manufacturing overhead per machine-hour	$	1.90		$	2.70

	Job P			Job Q
Direct materials	$	18,000		$	10,500
Direct labor cost	$	25,000		$	9,500
Actual machine-hours used:
Molding		2,200			1,300
Fabrication		1,100			1,400
Total		3,300			2,700

Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month.

Required:

For questions 1-9, assume that Sweeten Company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments and Job P included 20 units and Job Q included 30 units. For questions 10-15, assume that the company uses a plantwide predetermined overhead rate with machine-hours as the allocation base.

8. Assume that Sweeten Company used cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. What selling price would the company have established for Jobs P and Q? What are the selling prices for both jobs when stated on a per unit basis? (Do not round intermediate calculations. Round your final answers to nearest whole dollar.)

9. What was Sweeten Company’s cost of goods sold for March? (Do not round intermediate calculations.)

Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departments—Molding and Fabrication. It started, completed, and sold only two jobs during March—Job P and Job Q. The following additional information is available for the company as a whole and for Jobs P and Q (all data and questions relate to the month of March):

	Molding			Fabrication			Total
Estimated total machine-hours used		2,500			1,500			4,000
Estimated total fixed manufacturing overhead	$	11,250		$	15,750		$	27,000
Estimated variable manufacturing overhead per machine-hour	$	1.90		$	2.70

	Job P			Job Q
Direct materials	$	18,000		$	10,500
Direct labor cost	$	25,000		$	9,500
Actual machine-hours used:
Molding		2,200			1,300
Fabrication		1,100			1,400
Total		3,300			2,700

10. What was the company’s plantwide predetermined overhead rate? (Round your answer to 2 decimal places.)

11. How much manufacturing overhead was applied to Job P and how much was applied to Job Q? (Do not round intermediate calculations.)

12. If Job P included 20 units, what was its unit product cost? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)

13. If Job Q included 30 units, what was its unit product cost? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)

Suppose the comparative balance sheets of Skysong, Inc. are presented here. SKYSONG, INC. Condensed Balance Sheet May 31 ($ in millions) 2017 2016 Assets Current Assets $9,550 $8,900 Property, plant, and equipment (net) 2,050 1,850 Other assets 1,480 1,730 Total assets $13,080 $12,480 Liabilities and Stockholders' Equity Current Liabilities $3,230 $3,330 Long-term liabilities 1,270 1,300 Stockholders’ equity 8,580 7,850 Total liabilities and stockholders' equity $13,080 $12,480 (a) Prepare a horizontal analysis of the balance sheet data for Skysong, using 2016 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.) SKYSONG, INC. Condensed Balance Sheet May 31 ($ in millions) 2017 2016 Increase (Decrease) Percentage Change from 2016 Assets Current Assets $9,550 $8,900 $ % Property, plant, and equipment (net) 2,050 1,850 % Other assets 1,480 1,730 % Total assets $13,080 $12,480 $ % Liabilities and Stockholders' Equity Current Liabilities $3,230 $3,330 $ % Long-term liabilities 1,270 1,300 % Stockholders’ equity 8,580 7,850 % Total liabilities and stockholders' equity $13,080 $12,480 $ % (b) Prepare a vertical analysis of the balance sheet data for Skysong for 2017. SKYSONG, INC. Condensed Balance Sheet $ (in millions) Percent Assets Current Assets $9,550 % Property, plant, and equipment (net) 2,050 % Other assets 1,480 % Total assets $13,080 % Liabilities and Stockholders' Equity Current Liabilities $3,230 % Long-term Liabilities 1,270 % Stockholders’ equity 8,580 % Total liabilities and stockholders' equity $13,080 %

What topic in this class on Governmental and Non-Profit accounting was the most relevant to you?

What is your impression of governmental and NFP accounting?

Change of Policy to Improve Productivity

Orange Electronics has been experiencing declining profit margins and has been looking for

ways to increase operating income. It cannot raise selling prices for fear of losing business to

its competitors. It must either cut costs or improve productivity.

The company uses a standard cost system to evaluate the performance of the soldering

department. It investigates all unfavorable variances at the end of the month. The soldering

department rarely completes the operations in less time than the standard allows (which

would result in a favorable variance). In most months, the variance is zero or slightly unfavor-

able. Reasoning that the application of lower standard costs to the products manufactured

will result in improved profit margins, the production manager has recommended that all

standard times for soldering operations be drastically reduced. The production manager has

informed the soldering personnel that she expects the soldering department to meet these new

standards.

Required

Will the lowering of the standard costs (by reducing the time of the soldering operations)

result in improved profit margins and increased productivity? Explain.

The following selected transactions were completed during August between Summit Company and Beartooth Co.:

Aug.	1	Summit Company sold merchandise on account to Beartooth Co., $43,500, terms FOB destination, 2/15, n/eom. The cost of the goods sold was $29,330.
	2	Summit Company paid freight of $1,110 for delivery of merchandise sold to Beartooth Co. on August 1.
	5	Summit Company sold merchandise on account to Beartooth Co., $69,400, terms FOB shipping point, n/eom. The cost of the goods sold was $42,440.
	9	Beartooth Co. paid freight of $2,310 on August 5 purchase from Summit Company.
	15	Summit Company sold merchandise on account to Beartooth Co., $61,000, terms FOB shipping point, 1/10, n/30. Summit Company paid freight of $1,555, which was added to the invoice. The cost of the goods sold was $37,780.
	16	Beartooth Co. paid Summit Company for purchase of August 1.
	25	Beartooth Co. paid Summit Company on account for purchase of August 15.
	31	Beartooth Co. paid Summit Company on account for purchase of August 5.

Journalize the August transactions for (1) Summit Company and (2) Beartooth Co. Refer to the Chart of Accounts of the appropriate company for exact wording of account titles.

Question a

The Ludco court case is an example of:

	Direct use establishes deductibility.
	Indirect use establishes deductibility.
	A quantitative determination of income is not required.
	The disappearing source rule.

Question g

Non-eligible dividends

	Have a gross up of 38%.
	Are paid by Canadian controlled private corporations.
	Have a federal dividend tax credit of 21/29 of the taxable dividend.
	Are paid by both public and private corporations.

It has been proposed that the Foundation for Preservation of the American Badger (taxidea taxus) be provided a sales tax exemption for its purchases and for its annual sales of “Badger Booster” cookies. Please analyze according to the general principles of tax policy.

Beachpoint sells a snowboard Xpert that is popular with surfing enthusiasts. Below is information relating to Beachpoint's purchases and sales of Xpert snowboards during September. Beachpoint uses a perpetual inventory system. Beginning inventory and purchases are as follows: Date Explanation Units Unit Cost Total Cost Sept 1 Inventory 26 $ 97 $ 2 522 Sept 12 Purchases 45 102 4 590 Sept 19 Purchases 20 104 2 080 Sept 26 Purchases 50 105 5 250 Totals 141 $14 442 Sales are as follows: Date Units Unit Price Total Cost Sept. 5 Sale 12 $199 $ 2 388 Sept. 16 Sale 50 199 9 950 Sept. 29 Sale 62 209 12 958 Totals 124 $25 296 Instructions Compute the ending inventory at 30 September using: (a) FIFO $ (b) LIFO $ (c) Moving-Average cost (Round your answer to the nearest dollar*) $ *In your calculation round the average per unit cost to the nearest cent, that is, to 2 decimal places.

Please explain how to do the below problems answers are given at the end.

The Larkspur Furniture Company's chair manufacturing requires multiple shades of wood stain. The most popular stain color is "Warm Oak”. The company's production operation uses 560 cases per year of this stain. The ordering cost is $43 per order. The company estimates the holding costs at $8 per case per year. The lead time to receive a shipment from the supplier is 5 days. The company operates 250 days per year.  

What is the total annual cost of ordering and holding the product? This calculation should be in dollars, so your answer should have two (2) decimal places.

This problem does not require you to enter the units of measure for your answers. Don't type anything in the response box below except the final calculation result.  

Answer:

The correct answer is: 620.72

Question text

The Larkspur Furniture Company's chair manufacturing requires multiple shades of wood stain. The most popular stain color is "Warm Oak”. The company's production operation uses 560 cases per year of this stain. The ordering cost is $43 per order. The company estimates the holding costs at $8 per case per year. The lead time to receive a shipment from the supplier is 5 days. The company operates 250 days per year.  

What is the length of time in days between orders of this item?

This problem does not require you to enter the units of measure for your answers. Don't type anything in the response box below except the final calculation result.  

Answer:

Example 4. Time = (working days per year)/(# of orders per year)

The correct answer is: 34.82

Question text

The Larkspur Furniture Company's chair manufacturing requires multiple shades of wood stain. The most popular stain color is "Warm Oak”. The company's production operation uses 560 cases per year of this stain. The ordering cost is $43 per order. The company estimates the holding costs at $8 per case per year. The lead time to receive a shipment from the supplier is 5 days. The company operates 250 days per year.  

What is the reorder point? Assume there is no safety stock.   

This problem does not require you to enter the units of measure for your answers. Don't type anything in the response box below except the final calculation result.  

Answer:

The correct answer is: 12

Examine the elements of the cost-volume-profit (CVP) income statement and provide your opinion on the benefits of its use for decision making by the management of the company researched over traditional income statements under generally accepted accounting principles (GAAP).

The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods:

Current assets as of March 31:
Cash	$	7,300
Accounts receivable	$	19,200
Inventory	$	38,400
Building and equipment, net	$	124,800
Accounts payable	$	22,800
Common stock	$	150,000
Retained earnings	$	16,900

1. The gross margin is 25% of sales.

2. Actual and budgeted sales data:

March (actual)	$	48,000
April	$	64,000
May	$	69,000
June	$	94,000
July	$	45,000

3. Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following sale. The accounts receivable at March 31 are a result of March credit sales.

4. Each month’s ending inventory should equal 80% of the following month’s budgeted cost of goods sold.

5. One-half of a month’s inventory purchases is paid for in the month of purchase; the other half is paid for in the following month. The accounts payable at March 31 are the result of March purchases of inventory.

6. Monthly expenses are as follows: commissions, 12% of sales; rent, $2,100 per month; other expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid monthly. Depreciation is $936 per month (includes depreciation on new assets).

7. Equipment costing $1,300 will be purchased for cash in April.

8. Management would like to maintain a minimum cash balance of at least $4,000 at the end of each month. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month, up to a total loan balance of $20,000. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter.

Required:

Using the preceding data:

1. Complete the schedule of expected cash collections.

2. Complete the merchandise purchases budget and the schedule of expected cash disbursements for merchandise purchases.

3. Complete the cash budget.

4. Prepare an absorption costing income statement for the quarter ended June 30.

5. Prepare a balance sheet as of June 30.

Although alternative approaches of cost assignment are available their usefulness is limited due to different and perhaps unrealistic assumptions. Hence the choice of cost assignment method needs careful attention. Discuss

Ornamental Sculptures Mfg. manufactures garden sculptures. Each sculpture requires 8 pounds of direct materials at a cost of $4 per pound and 0.4 direct labor hours at a rate of $18 per hour. Variable manufacturing overhead is charged at a rate of $3 per direct labor hour. Fixed manufacturing overhead is $4,900 per month. The company’s policy is to maintain direct materials inventory equal to 30% of the next month’s materials requirement. At the end of February the company had 5,780 pounds of direct materials in inventory. The company’s production budget reports the following.

Production Budget	March		April		May
Units to be produced	3,600		4,700		5,400

(1) Prepare direct materials budgets for March and April.

ORNAMENTAL SCULPTURES MFG. Direct Materials Budget For the Months of March and April March April Budgeted production (units) Materials requirements per unit (lbs.) Materials needed for production (lbs.) 0 0 Budgeted ending inventory (lbs.) Total materials requirements (lbs.) 0 0 Budgeted beginning inventory (lbs.) Materials to be purchased (lbs.) 0 0 Direct material cost per lb. Total budgeted direct materials $0 $0

(2) Prepare direct labor budgets for March and April

	ORNAMENTAL SCULPTURES MFG. Direct Labor Budget For the Months of March and April March April Budgeted production (units) DL hours required per unit Total direct labor hours needed 0 0 Direct labor rate per hour Total budgeted direct labor $0 $0

(3) Prepare factory overhead budgets for March and April.

	ORNAMENTAL SCULPTURES MFG. Factory Overhead Budget For the Months of March and April March April Total direct labor hours needed VOH rate per DL hour Budgeted variable overhead $0 $0 Budgeted fixed overhead Total budgeted factory overhead $0 $0

While in class, Uliss placed his cell phone under his chair. At the end of class, Uliss could not remember where he placed the phone. Charlie, a classmate, found the phone under the chair and now claims ownership rights under the theory “ Finders are keepers”. In a conflict between Uliss and Charlie, who would win and why?

Fickel Company has two manufacturing departments.- Asembley and testing & packing. The predetermined overhead rates in asembley and testing and packing are $27.00 per direct labor hour and $23 per direct labor hour, respectfully. The companys direct labor wage is $29 per hour. the following pertains to job N-60

Asmebley Testing and packing

direct materials $415 $55

Direct labor $348 $87

What is the total manufacturing cost assigned to Job N-60?

If job N-60 Consists of 10 units, what is the unit product cost for this job?

1. Total Manufacturing cost _____________

2.Unit product cost ___________ per unit