Using the appropriate present value table and assuming a 12% annual interest rate, determine the present value on December 31, 2018, of a five-period annual annuity of $5,600 under each of the following situations: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1.The first payment is received on December 31, 2019, and interest is compounded annually. 2.The first payment is received on December 31, 2018, and interest is compounded annually. 3.The first payment is received on December 31, 2019, and interest is compounded quarterly.

The law of one price states that:

The nominal exchange rates should always be the same as the real exchange rates, both in the short run and in the long run

In ideally efficient markets, the real purchasing power of a currency should be the same regardless of where it is spent

The cost of an individual good should be higher in countries with higher productivity

Which of the following scenarios illustrates why the law of one price may not hold? Check all that apply.

The formation of the European Union creates a custom union among its member states, where internally traded goods are not subject to custom duties, tariffs, or import quotas.

Small electronic devices, such as computer chips, are relatively light and can be shipped in bulk.

Cement is very heavy, and the cost of shipping is measured by weight.

what is meant by the term “Management by exception”? If employees are chronically unable to meet a standard, what effect would you expect this to have on their productivity?

Vinson Co. manufactures and sells one product.  Assume the selling price for each item is $200/per unit.  The following information pertains to the company’s first two years of operation:

Variable Costs Per Unit:

Manufacturing:

                  Direct Materials                                                                        $32/unit

                  Direct Labor                                                              $20/unit

                  Variable Manufacturing Overhead               $4/unit

Variable Selling and Administrative                              $3/unit

Fixed Costs:

Fixed Manufacturing Overhead                                       $660,000

Fixed Selling and Administrative                                    $120,000

Additionally, Vinson Company provides you with the following inventory flow information in terms of units for YEAR 1 & YEAR 2:

                                                                                                            YEAR 1                     YEAR 2                     

Beginning Inventory (units)                                               0                                 20,000                    

Units Produced                                                                         100,000                 75,000                    

Units Sold                                                                                     80,000                    90,000                    

Ending Inventory (units)                                                                        20,000                    5,000     

FOR YEAR 2 PLEASE ANSWER THE FOLLOWING QUESTIONS:

Question 1:   Using the following table, calculate Vinson’s Unit Product Cost/Unit using the Variable Cost Method and Absorption Cost Method.

- Using the Variable Cost Method----Compute Cost Goods Sold:

-Prepare the Company’s YEAR 2 Contribution Margin Income Statement---properly label and show all amounts

-Using the Absorption Cost Method----Compute Cost Goods Sold:

Please describe the circumstances of the following case study and recommend a course of action.

Explain your approach to the problem, perform relevant calculations and analysis, and formulate a recommendation.

Ensure your work and recommendation are thoroughly supported.

Case Study: A vacuum manufacturer has prepared the following cost data for manufacturing one of its engine components based on the annual production of 50,000 units.

Description Cost per Month

Direct Materials $75,000

Direct Labor    $100,000

Total    $175,000

In addition, variable factory overhead is applied at $7.50 per unit. Fixed factory overhead is applied at 150% of direct labor cost per unit. The vacuums sell for $150 each. A third party has offered to make the engines for $60 per unit. 75% of fixed factory overhead, which represents executive salaries, rent, depreciation, and taxes, continue regardless of the decision. Should the company make or buy the engines?

Articulate the approach to solving the problem, including which financial information is relevant and not relevant.

Correctly conclude on whether the company should make or buy the engines.

Propose other factors that should be considered when making this decision and elaborate on whether or not those factors do or do not support the decision.

For each of the following situations involving single amounts, solve for the unknown. Assume that interest is compounded annually. (i = interest rate, and n = number of years) (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) (Round your final answers to nearest whole dollar amount.)

Present Value Future Value i n

1. $44,000 9.0% 7

2. $37,026 $57,000 2.0% 11

3. $15,901 $41,000 7.0%

4. $35,417 $110,000 10

5. $15,189 6.0% 14

Problem 4-2A Preparing a work sheet, adjusting and closing entries, and financial statements LO C3, P1, P2

The following unadjusted trial balance is for ACE CONSTRUCTION CO. as of the end of its 2017 fiscal year. The June 30, 2016, credit balance of the owner’s capital account was $52,300, and the owner invested $24,000 cash in the company during the 2017 fiscal year.

Adjustments:
  

1. The supplies available at the end of fiscal year 2017 had a cost of $2,880.
2. The cost of expired insurance for the fiscal year is $4,095.
3. Annual depreciation on equipment is $8,000.
4. The June utilities expense of $600 is not included in the unadjusted trial balance because the bill arrived after the trial balance was prepared. The $600 amount owed needs to be recorded.
5. The company’s employees have earned $1,200 of accrued wages at fiscal year-end.
6. The rent expense incurred and not yet paid or recorded at fiscal year-end is $100.
7. Additional property taxes of $600 have been assessed for this fiscal year but have not been paid or recorded in the accounts.
8. The long-term note payable bears interest at 12% per year. The unadjusted Interest Expense account equals the amount paid for the first 11 months of the 2017 fiscal year. The $240 accrued interest for June has not yet been paid or recorded. (The company is required to make a $5,500 payment toward the note payable during the 2018 fiscal year.)

Required:
1. Prepare a 10-column work sheet for fiscal year 2017, starting with the unadjusted trial balance and including adjustments based on the additional facts.
2a. Prepare the adjusting entries. (all dated June 30, 2017).
2b. Prepare the closing entries. (all dated June 30, 2017):
3a. Prepare the income statement for the year ended June 30.
3b. Prepare the statement of owner's equity for the year ended June 30.
3c. Prepare the classified balance sheet at June 30, 2017.

home / study / business / accounting / accounting questions and answers / the cfo of the tapco plastics industries corporation has requested your help in preparing several ... Question: The CFO of The Tapco Plastics Industries Corporation has requested your help in preparing several... (3 bookmarks) The CFO of The Tapco Plastics Industries Corporation has requested your help in preparing several journal entries. She has sent you the following information. October 1, 2013: issued $6,000,000 of “20” year convertible bonds. The bonds pay an annual rate of interest of 5%, payable semi-annually on April 1 st and October 1 st each year. The bonds were issued with a premium of $180,000. The premium is being amortized on a straight line basis. The bonds can be converted on any date after 4 years from their issue date, into 10 shares of Tapco’s $5 par value common stock for each $1,000 of bonds. On December 1, 2017 $1,200,000 of bonds were turned in for conversion. Accrued interest on the bonds being converted was also paid to the holders at the time of the conversion. The company’s stock was selling for $205 per share on the date of the conversion. On May1, 2018 $480,000 of bonds were turned in for conversion. Accrued interest on the bonds being converted was also paid to the holders at the time of the conversion. The company’s stock was selling for $235 per share on the date of the conversion. Note: Tapco Plastics Corporation has a year end of December 31 st . Prepare all journal entries pertaining to these bonds for the dates below: October 1, 2017 December 1, 2017 May 1, 2018 December 31, 2018 April 1, 2019

On January 1, 2017, Brussels Enterprises issues bonds at par dated January 1, 2017, that have a $2,600,000 par value, mature in 4 years, and pay 9% interest semiannually on June 30 and December 31.

1. Record the entry for the issuance of bonds for cash on January 1, 2017.
2. Record the entry for the first semiannual interest payment on June 30, 2017.
3. Record the entry for the second semiannual interest payment on December 31, 2017.
4. Record the entry for the maturity of the bonds on December 31, 2020 (assume semiannual interest is already recorded).
  

Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. The company uses a job-order costing system that applies manufacturing overhead cost to jobs on the basis of direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $336,000 of manufacturing overhead for an estimated allocation base of 1,050 direct labor-hours. The following transactions took place during the year:

1. Raw materials purchased on account, $225,000.
2. Raw materials used in production (all direct materials), $210,000.
3. Utility bills incurred on account, $58,000 (95% related to factory operations, and the remainder related to selling and administrative activities).
4. Accrued salary and wage costs:

5. Maintenance costs incurred on account in the factory, $59,000
6. Advertising costs incurred on account, $141,000.
7. Depreciation was recorded for the year, $89,000 (70% related to factory equipment, and the remainder related to selling and administrative equipment).
8. Rental cost incurred on account, $114,000 (75% related to factory facilities, and the remainder related to selling and administrative facilities).
9. Manufacturing overhead cost was applied to jobs, $ ? .
10. Cost of goods manufactured for the year, $820,000.
11. Sales for the year (all on account) totaled $1,450,000. These goods cost $850,000 according to their job cost sheets.

The balances in the inventory accounts at the beginning of the year were:

Required:

1. Prepare journal entries to record the preceding transactions.

2. Post your entries to T-accounts. (Don’t forget to enter the beginning inventory balances above.)

3. Prepare a schedule of cost of goods manufactured.

4A. Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold.

4B. Prepare a schedule of cost of goods sold.

5. Prepare an income statement for the year.

SkyChefs, Inc., prepares in-flight meals for a number of major airlines. One of the company’s products is grilled salmon in dill sauce with baby new potatoes and spring vegetables. During the most recent week, the company prepared 4,800 of these meals using 1,400 direct labor-hours. The company paid these direct labor workers a total of $18,200 for this work, or $13.00 per hour.

According to the standard cost card for this meal, it should require 0.30 direct labor-hours at a cost of $12.50 per hour.

   
Required:

1. According to the standards, what direct labor cost should have been incurred to prepare 4,800 meals? How much does this differ from the actual direct labor cost? (Round labor-hours per meal and labor cost per hour to 2 decimal places.)

2. Break down the difference computed in (1) above into a labor rate variance and a labor efficiency variance. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

Silven Industries, which manufactures and sells a highly successful line of summer lotions and insect repellents, has decided to diversify in order to stabilize sales throughout the year. A natural area for the company to consider is the production of winter lotions and creams to prevent dry and chapped skin.

After considerable research, a winter products line has been developed. However, Silven’s president has decided to introduce only one of the new products for this coming winter. If the product is a success, further expansion in future years will be initiated.

The product selected (called Chap-Off) is a lip balm that will be sold in a lipstick-type tube. The product will be sold to wholesalers in boxes of 24 tubes for $7 per box. Because of excess capacity, no additional fixed manufacturing overhead costs will be incurred to produce the product. However, a $55,000 charge for fixed manufacturing overhead will be absorbed by the product under the company’s absorption costing system.

Using the estimated sales and production of 110,000 boxes of Chap-Off, the Accounting Department has developed the following cost per box:

The costs above include costs for producing both the lip balm and the tube that contains it. As an alternative to making the tubes, Silven has approached a supplier to discuss the possibility of purchasing the tubes for Chap-Off. The purchase price of the empty tubes from the supplier would be $1.25 per box of 24 tubes. If Silven Industries accepts the purchase proposal, direct labor and variable manufacturing overhead costs per box of Chap-Off would be reduced by 10% and direct materials costs would be reduced by 25%.

Required:

1a. Calculate the total variable cost of producing one box of Chap-Off? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

1b. Assume that the tubes for the Chap-Off are purchased from the outside supplier, calculate the total variable cost of producing one box of Chap-Off? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

1c. Should Silven Industries make or buy the tubes?

2. What would be the maximum purchase price acceptable to Silven Industries? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

3. Instead of sales of 110,000 boxes, revised estimates show a sales volume of 130,000 boxes. At this new volume, additional equipment must be acquired to manufacture the tubes at an annual rental of $46,000. Assume that the outside supplier will not accept an order for less than 130,000 boxes.

a. Calculate the total relevant cost of making 130,000 boxes and total relevant cost of buying 130,000 boxes. (Do not round intermediate calculations.)

b. Based on the above calculations, should Silven Industries make or buy the boxes?

4. Refer to the data in (3) above. Assume that the outside supplier will accept an order of any size for the tubes at $1.25 per box. Which of these is the best alternative?

BOR CPAs, Inc. is a closely held corporation owned by three stockholders who used the initials of their last names to form the corporation’s name: Cyrus Bailey, John Ogden, and Samuel Rogers. The firm’s Certified Public Accountants (CPAs) perform audits of both public companies and privately owned companies. BOR’s CPAs also provide tax services to both individuals and businesses.

The corporation is divided into two profit centers: the Audit Division and the Tax Division. Each division is composed of two cost centers. The Audit Division is composed of two cost-center departments: Public Company Audits and Private Company Audits. The Tax Division is composed of two cost-center departments also: Individual Tax and Business Tax.

BOR, a decentralized organization, is interested in evaluating the performance of the two divisions. The stockholders are responsible for deciding on investment in the two divisions. Cyrus Bailey is in charge of the performance evaluation, and turns to you for assistance. Mr. Bailey is only interested in evaluating operations at the profit center (division) level, and not at the cost center (department) level.

Mr. Bailey is considering temporarily using some of the staff from the Tax Division to assist the Audit Division during the upcoming busy audit season, and would like to evaluate the effect of this on net income. The Tax Division is estimated to have 800 hours of excess capacity.

The unit for determining sales revenue in both divisions is the "engagement", which means the total agreed-upon work for a given client in either audit or tax for a given year. The company charges on average a fee of $75,000 per audit engagement, and $15,750 per tax engagement.

The company has its own Payroll Office, which provides payroll services to both divisions and will allocate its total expenses to the two divisions as service department charges.

The following chart shows some basic data for the company:

Mr. Bailey would like you to start by analyzing the Payroll Office expenses, and allocating the total expenses to each division. He has decided to use the number of payroll checks as the activity base for the allocation.

Fill in the following blanks, allocating the total expense for the Payroll Office to each of the two divisions.

Mr. Bailey has prepared the following divisional income statement for you to review, assuming no transfer of excess capacity hours occurs. He has also included the total amounts for BOR CPAs, Inc. in the rightmost column.

Complete the following Income Statements with your data from the Payroll panel. Enter all amounts as positive numbers.

Mr. Bailey asks that you prepare Divisional Income Statements showing what 20Y1 results would have been had the Audit Division purchased all the excess capacity of the Tax Division, using a market transfer price. The divisional managers tell you that, with the excess capacity of the Tax Division of 800 hours, the Audit Division can perform 4 more audits during the year, and the Tax Division would charge the Audit Division the market rate of $110.00 per hour for the additional hours required, selling all its excess capacity to the Audit Division. The Tax Division would still be responsible for paying the salaries of their employees.

Complete the following Income Statements. Enter all amounts as positive numbers. If there is no amount or an amount is zero, enter “0”.

Mr. Bailey asks that you prepare Divisional Income Statements showing what 20Y1 results would have been had the Audit Division purchased all the excess capacity of the Tax Division, using a cost transfer price. The divisional managers tell you that, with the excess capacity of the Tax Division of 800 hours, the Audit Division can perform 4 more audits during the year, and the Audit Division would pay the Tax Division's internal hourly rate of $60.00 per hour for the additional hours required, with the Tax Division selling all its excess capacity to the Audit Division. The Tax Division would still be responsible for paying the salaries of their employees.

Complete the following Income Statements. Enter all amounts as positive numbers. If there is no amount or an amount is zero, enter “0”.

How do you adjust your own interpersonal communication styles to meet the organisation’s cultural diversity and ethical environment and guide and support the work team in their personal adjustment process?

Ridgecrest Electric manufactures electric motors. It competes and plans to grow by selling high-quality motors at a low price and by delivering them to customers quickly after receiving customers’ orders. There are many other manufacturers who produce similar motors. Ridgecrest believes that continuously improving its manufacturing processes and having satisfied employees are critical to implementing its strategy in 2015.

1. Is Ridgecrest’s 2015 strategy one of product differentiation or cost leadership? Explain briefly.

2. Indicate a measure you would expect to see in Ridgecrest’s balanced scorecard for 2015.