Blue Department Store converted from the conventional retail method to the LIFO retail method on January 1, 2020, and is now considering converting to the dollar-value LIFO inventory method. During your examination of the financial statements for the year ended December 31, 2021, management requested that you furnish a summary showing certain computations of inventory cost for the past 3 years.

Here is the available information.

Compute the cost of inventory on hand at December 31, 2019, based on the conventional retail method. (Round ratios for computational purposes to 0 decimal places, e.g. 78% and final answer to 0 decimal places, e.g. 28,987)

Compute the inventory to be reported on December 31, 2019, in accordance with procedures necessary to convert from the conventional retail method to the LIFO retail method beginning January 1, 2020. Assume that the retail value of the December 31, 2019, inventory was $60,900. (Round ratios for computational purposes to 2 decimal places, e.g. 78.72% and final answer to 0 decimal places, e.g. 28,987.)

Without prejudice to your solution to part (b), assume that you computed the December 31, 2019, inventory (retail value $60,900) under the LIFO retail method at a cost of $36,845. Compute the cost of the store’s 2020 and 2021 year-end inventories under the dollar-value LIFO method. (Round ratios for computational purposes to 2 decimal places, e.g. 78.72% and final answer to 0 decimal places, e.g. 28,987.)

1. In divisional income statements prepared for LeFevre 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 $85,584, and the Purchasing Department had expenses of $25,370 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records:

   		Residential		Commercial		Government Contract
   Sales		$530,000		$703,000		$1,614,000
   Number of employees:
   	Weekly payroll (52 weeks per year)	225		80		85
   	Monthly payroll	28		39		26
   Number of purchase
   	requisitions per year	1,800		1,300		1,200

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

   	Residential	Commercial	Government Contract	Total
   Number of payroll checks:
   Weekly payroll
   Monthly payroll
   Total
   Number of purchase requisitions per year:

   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. If required, round your answers to two decimal places. Do not round your interim calculations, round your answers to two decimal places, if required.

   Service department charge rates:
   Payroll Department	$ payroll distribution
   Purchasing Department	$ per requisition

   	Residential	Commercial	Government Contract	Total
   Service department charges:
   Payroll Department	$	$	$	$
   Purchasing Department
   Total	$	$	$

   c. Residential's service department charge is

   • higher
   • lower
   than the other two divisions because Residential is a
   • heavy
   • light
   user of service department services. Residential has many employees on a weekly payroll, which translates into a
   • larger
   • smaller
   number of check-issuing transactions.

Sullivan's Island Company began operating a subsidiary in a foreign country on January 1, 2017, by investing capital in the amount of 82,000 pounds. The subsidiary immediately borrowed 195,000 pounds on a five-year note with 9 percent interest payable annually beginning on January 1, 2018. The subsidiary then purchased for 277,000 pounds a building that had a 10-year expected life and no salvage value and is to be depreciated using the straight-line method. Also on January 1, 2017, the subsidiary rented the building for three years to a group of local attorneys for 8,550 pounds per month. By year-end, rent payments totaling 85,500 pounds had been received, and 17,100 pounds was in accounts receivable. On October 1, 3,500 pounds was paid for a repair made to the building. The subsidiary transferred a cash dividend of 11,725 pounds back to Sullivan's Island Company on December 31, 2017.

The functional currency for the subsidiary is the pound. Currency exchange rates for 1 pound follow: January 1, 2017 $ 2.00 = 1 Pound October 1, 2017 2.05 = 1 December 31, 2017 2.08 = 1 Average for 2017 2.04 = 1 Prepare an income statement, statement of retained earnings, and balance sheet for this subsidiary in pounds and then translate these amounts into U.S. dollars. Prepare a Statement of Retained earnings. (Amounts to be deducted should be indicated by a minus sign.) SULLIVAN'S ISLAND COMPANY Statement of Retained Earnings For the Year Ended December 31, 2017 Pounds U.S. Dollars Retained earnings, 1/1 Retained earnings, 12/31 0 $0 Prepare a Balance Sheet. (Amounts to be deducted should be indicated by a minus sign.) SULLIVAN'S ISLAND COMPANY Balance Sheet December 31, 2017 Pounds U.S. Dollars Assets: Total assets 0 $0 Liabilities and Equities: Total liabilities and equities 0 $0

Megatronics Corporation, a massive retailer of electronic products, is organized in four separate divisions. The four divisional managers are evaluated at year-end, and bonuses are awarded based on ROI. Last year, the company as a whole produced a 13 percent return on its investment.

During the past week, management of the company’s Northeast Division was approached about the possibility of buying a competitor that had decided to redirect its retail activities. (If the competitor is acquired, it will be acquired at its book value.) The data that follow relate to recent performance of the Northeast Division and the competitor:

Management has determined that in order to upgrade the competitor to Megatronics’ standards, an additional $150,000 of invested capital would be needed.

Required:

1. Compute the current ROI of the Northeast Division and the division’s ROI if the competitor is acquired.

1A. If divisional management is being evaluated on the basis of ROI, will the Northeast Division likely pursue acquisition of the competitor?

1C. Compute the ROI of the competitor as it is now and after the intended upgrade.

1D. If ROI is used as the basis for evaluation, would Megatronics Corporation likely be in favor of the acquisition of the competitor?

1E. Calculate the Northeast Division's ROI after acquisition of competitor but before upgrading.

1F. Assume that Megatronics uses residual income to evaluate performance and desires a 10 percent minimum return on invested capital. Compute the current residual income of the Northeast Division and the division’s residual income if the competitor is acquired.

1G. If divisional management is being evaluated on the basis of residual income, will the Northeast Division likely pursue acquisition of the competitor?

Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out and free home delivery services. The pizzeria’s owner has determined that the shop has two major cost drivers—the number of pizzas sold and the number of deliveries made.

Data concerning the pizzeria’s costs appear below:

In November, the pizzeria budgeted for 2,190 pizzas at an average selling price of $20 per pizza and for 190 deliveries.

Data concerning the pizzeria’s operations in November appear below:

Required:

1. Complete the flexible budget performance report that shows both revenue and spending variances and activity variances for the pizzeria for November. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Sturdley Corporation has 20,000 shares of $100 par value, 7% cumulative preferred stock outstanding and 100,000 of its $1 par value common stock outstanding. In their first four years of operation they paid the following cash dividends:

2016 -0-

2017 $240,000

2018 $280,000

2019 $180,000

Determine the total cash dividends paid during the four years with preferred stock as cumulative and then calculate it again with the preferred stock as non-cumulative.

Khaleed Manufacturing, a new company producing baby toys gives the following standard information: As per the following information, calculate labor variances. Standard hours per unit 3.5hrs. Standard rate per hour $35 Actual units produced 1,000units while actual labor hours is 5,000hrs at a total cost of $135,000. The company recorded idle hours of 450.

a) Labor Cost Variance b) Labor Rate Variance c) Labor Efficiency variance d) Idle Time Variance

The Regal Cycle Company manufactures three types of bicycles�a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Total Dirt Bikes Mountain Bikes Racing Bikes Sales $ 919,000 $ 261,000 $ 404,000 $ 254,000 Variable manufacturing and selling expenses 461,000 113,000 195,000 153,000 Contribution margin 458,000 148,000 209,000 101,000 Fixed expenses: Advertising, traceable 69,600 8600 40300 20700 Depreciation of special equipment 43,600 20,200 7700 15700 Salaries of product-line managers 115,200 40,100 38800 36300 Allocated common fixed expenses* 183,000 52,200 80800 50800 Total fixed expenses 412,000 121,000 167600 123500 Net operating income (loss) $ 45,800 $ 26,900 $ 41400 $ (22,500) home / study / math / other math / other math questions and answers / the regal cycle company manufactures three types of bicycles�a dirt bike, a mountain bike, ... Question: The Regal Cycle Company manufactures three types of bicycles�a dirt bike, a mountain bike, and a ... (26 bookmarks) The Regal Cycle Company manufactures three types of bicycles�a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Total Dirt Bikes Mountain Bikes Racing Bikes Sales $ 300,000 $ 90,000 $ 150,000 $ 60,000 Variable manufacturing and selling expenses 120,000 27,000 60,000 33,000 Contribution margin 180,000 63,000 90,000 27,000 Fixed expenses: Advertising, traceable 30,000 10,000 14,000 6,000 Depreciation of special equipment 23,000 6,000 9,000 8,000 Salaries of product-line managers 35,000 12,000 13,000 10,000 Allocated common fixed expenses* 60,000 18,000 30,000 12,000 Total fixed expenses 148,000 46,000 66,000 36,000 Net operating income (loss) $ 32,000 $ 17,000 $ 24,000 $ (9,000) *Allocated on the basis of sales dollars. Management is concerned about the continued losses shown by the racing bikes and wants a recommendation as to whether or not the line should be discontinued. The special equipment used to produce racing bikes has no resale value and does not wear out. Required: 1a. What is the impact on net operating income by discontinuing racing bikes? (Decreases should be indicated by a minus sign.) 1b. Should production and sale of the racing bikes be discontinued? Yes No 2a. Prepare a segmented income statement. 2b. Would a segmented income statement format be more usable to management in assessing the long-run profitability of the various product lines.

Janes Paper Products (JPP) manufactures inkjet, laser and specialty papers for the consumer market. JPP uses a process costing system.

Information for February in the first processing department (Mixing) is as follows.

Required:

1. Using Weighted-Average Method compute equivalent units for direct material and conversion costs. Prepare Cost of Production Schedule that includes the cost per equivalent units for direct material and conversion costs, and summary of costs to account for and the cost of units transferred and the cost of the units in ending work in process.

2. Using FIFO Method compute equivalent units for direct material and conversion costs. Prepare Cost of Production Schedule that includes the cost per equivalent units for direct material and conversion costs, and summary of costs to account for and the cost of units transferred and the cost of the units in ending work in process.

Scientific method

Read the following story carefully, then answer all the questions that appear at the end of it. [It is a hypothetical study, raised by the teacher, I present all the available information. Than you for your help]

Ana was looking for a project for her school's Science Fair. You read in a scientific journal about a study in which chickens were fed antibiotics. According to the study, chickens that were fed antibiotics grew faster than those that were not fed antibiotics.

Ana thought about this experiment for a long time. After reading more about the topic in the library, she decided to design an experiment using shrimp. She selected a species that grows to a maximum size of 10 centimeters and mature in approximately 6 to 8 weeks. The female produces 100 to 400 eggs that hatch in 2 to 3 weeks. Ana's teacher helped her order 144 shrimp and Ana obtained the antibiotic Aureomycin from her doctor.

When the shrimp arrived, Ana divided them into 6 groups, each group had 12 males and 12 females. She placed each group in identical glass containers, gave everyone the same food, and changed the water every 7 days. The 6 groups were treated in the same way except that different doses of the antibiotic were added to 5 containers each time the water was changed, as indicated in the following table:

Weekly before changing the water, the average size for each group was noted. These data are presented in the following table.

1. Define the problem
2. Express a possible hypothesis
3. Identify the variables: independent and dependent, and 5 variables under control
4. Is there a control group in this research? What function does it have?
5. Underline all the sentences that are part of the experimental design.
6. Analyze the data, what is the conclusion?

Condensed financial data of Flounder Company for 2017 and 2016 are presented below.

Additional information:

During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2017.

Prepare a statement of cash flows using the direct method. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

You are a manager who works for Ross, Sigh LLP, a local accounting firm. Your client is Transport Logistics (TL) transports hazardous materials from disposal facilities located in Alberta to a secure area.

Upon review of the minutes of the Board of Directors, you discover that TL has set up a higher than historical average provision for contingent liabilities related to spills that occurred while transporting the hazardous materials.

Required: Discuss 5 audit procedures performed during the completion of the audit phase that you would perform pertaining to contingent liabilities for TL.