Q: Would an auditing-standard convergence prevent fraud at the top-executive level? If No, how to deter top executives from engaging in illegal conduct?

The Fortunate Co. is preparing a cash budget for the 2nd quarter. The following information is available:

Projected cash sales:   $10,000 each month

Projected credit sales: $ 8,000 each month

One half of the credit sales are collected in the month of sale, and the remainder collected in the following month (there are no uncollectible accounts).

Accounts receivable on April 1^st were $3,000.

Operating expenses (paid in cash): $20,000 for April, and $13,000 for each of the following two months.

Cash balance-4/1: $7,000

The company must maintain a minimum cash balance at the end of each month of   $5,000.

Any deficiency must be borrowed, and repaid (with no interest) the following month.

Complete the following cash budget for Fortunate (22 points).

Required information

[The following information applies to the questions displayed below.]

Antuan Company set the following standard costs for one unit of its product.

The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume of 75% of the factory’s capacity of 20,000 units per month. Following are the company’s budgeted overhead costs per month at the 75% capacity level.

The company incurred the following actual costs when it operated at 75% of capacity in October.

rev: 03_28_2018_QC_CS-122864

Required:
1&2. Prepare flexible overhead budgets for October showing the amounts of each variable and fixed cost at the 65%, 75%, and 85% capacity levels and classify all items listed in the fixed budget as variable or fixed.

3. Compute the direct materials cost variance, including its price and quantity variances.

AQ = Actual Quantity
SQ = Standard Quantity
AP = Actual Price
SP = Standard Price
4. Compute the direct labor cost variance, including its rate and efficiency variances.

AH = Actual Hours
SH = Standard Hours
AR = Actual Rate
SR = Standard Rate

5. Prepare a detailed overhead variance report that shows the variances for individual items of overhead.

Using the below information open an excel file and create a Sales Budget, a Cash Receipt Schedule and a Production Budget for Fiwrt for the months of Oct, Nov, and Dec. Make sure to use proper format including dollar signs and headers - this will count in the grade. Upload the excel file as your response.

Fiwrt Corporation manufactures and sells stainless steel coffee mugs. Expected mug sales (in units) are expected to be as follows: September – 32,000, October – 30,000, November – 36,000, December – 34,000, and January 35,000.

Analysis and explanations can be included in the Excel cells or in a textbox. The submission should be one Excel file only. No additional files should be submitted. Use contribution margin income statement formatting. LiveColor is preparing their 2019 budget. They estimate sales/production will be between 700,000 and 900,000 boxes of markers per month. LiveColor wants to look at both static budgets and flexible budgets to determine which is best for them. They have struggled in the past with determining whether budget variances were related to volume being above or below budget vs whether they are spending too much or too little on expenses. They want to be able to understand their budget variances in order to make better decisions. Note: Treat Salary and Wages Costs as Fixed Expenses.

Question 1: Prepare some budgets in Excel for LiveColor. (20 points) a) Show the static budget based on 800,000 units (boxes) produced. b) Show what the flexible budget would be if 700,000 units (boxes) were produced. c) Show what the flexible budget would be if 900,000 units (boxes) were produced. d) Show the flexible budget cost formula(s) for LiveColor. e) Explain the difference between static and flexible budgets and when each should be used.

Question 2: The month of January 2019 is complete, and LiveColor wants to compare their budget to their actual results. Actual results are shown in the table above. (30 points) a) Compare January’s actual results to the static budget you created in Question 1. a). Analyze the static budget variances by comparing the static budget to the actual results. b) Break out price and volume variance amounts for each line item. c) For the static budget variances, indicate whether each line item is favorable or unfavorable. Provide possible explanations. d) Create the flexible budget based on the actual units produced for January. e) Compare the actual results to the flexible budget for January that you created in Question 2d. Analyze the flexible budget variances by comparing the flexible budget to the actual results. f) For the flexible budget variances, indicate whether each line item is favorable or unfavorable. Provide possible explanations. g) LiveColor wants to determine whether they should use a flexible budget or a static budget going forward. Write a memo to their CFO explaining some pros and cons of each option. Provide a recommendation including the reason(s) you recommend that approach.

Question 1 Chart Monthly Budget Selling

Price per unit-----5.00 per box Raw material cost-----1.50 per box Packaging Cost----.80 per box salary and wage cost----300,000 per month ot for product over 800,000 units---0.70 per box fringe benefits-----50% off wage and OT electricity---.20 per box waste and other cost---.10 per box rent cost---500,000 per month insurance cost----60,000 per month depreciation cost---240,000 per month

Question 2 Chart

Production---825,000 per box Sales---4,070,000 Ingredients cost---1,132,450 packaging cost---658,250 salary and wage cost---280,000 OT---48,750 Fringe benefits---164,375 electricity---158,780 waste and other cost--138,352 rent cost---500,000 insurance cost--65,000 depreciation cost---240,000

Walsh Company manufactures and sells one product. The following information pertains to each of the company’s first two years of operations: Variable costs per unit: Manufacturing: Direct materials $ 26 Direct labor $ 13 Variable manufacturing overhead $ 3 Variable selling and administrative $ 2 Fixed costs per year: Fixed manufacturing overhead $ 240,000 Fixed selling and administrative expenses $ 80,000 During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The selling price of the company’s product is $52 per unit. Required: 1. Assume the company uses variable costing: a. Compute the unit product cost for year 1 and year 2. b. Prepare an income statement for year 1 and year 2. 2. Assume the company uses absorption costing: a. Compute the unit product cost for year 1 and year 2. (Round your answer to 2 decimal places.) b. Prepare an income statement for year 1 and year 2. (Round your intermediate calculations to 2 decimal places) 3. Reconcile the difference between variable costing and absorption costing net operating income in year 1 and year 2.

Part 2

Consider the budgeted income statement for Happy Turtles for the month ended 30 June 2017 below:-

Less:   Operating expenses

                   Wages                                                                                        36,000

                   Utilities                                                                          5,000

                   Advertising                                                                                10,000

                   Depreciation                                                                                1,000

                   Office expenses                                                            4,000

                   Insurance and property taxes                                                    3,000                (59,000)

       Operating profit                                                                                                                                 29,000

                                                                                                                                       =====

Additional information:

• The cash balance on 31 May 2017 $15,000.
• Sales proceeds are collected as follows: 80% the month of sale; 10% the second month; and 10% the third month; explain what % will be use and why the other % will not be use.
• Accounts receivable are $ 44,000 on 31 May 2017 consisting of $ 20,000 from April 2017 sales and $24,000 from May 2017 sales, show the calculation and write process of getting the answer.
• Accounts payable on 31 May 2017 are $ 145,000.
• Happy Turtles pay 25% of purchases during the month of purchase and the remainder during the following month, what is the month of purchase, specify your answers.
• All operating expenses requiring cash are paid during the month of recognition, except that insurance and property taxes are paid annually in December for the forthcoming year.
• do we put amortization on the cash budget, write the reason.

Required:

Prepare a cash budget for June 2017. Confine your analysis to the given data. Ignore income taxes.

PharmaNiaga Bhd (PNB) is considering its intangible assets on how the matters below should be treated in its financial statements for the year ended 31 March 2020.

a). On 1 October 2019, PNB acquired Halia Bhd, a small company that specializes in pharmaceutical drug research and development on the usage of local source, halia hitam, for skin care products. The purchase consideration was by a share exchange and valued at RM35 million. The fair value of Halia Bhd’s net assets was RM15 million (excluding any items referred to below). Halia Bhd owns a patent for an established successful product that had a remaining life of 8 years. A firm specialist advisor, HebatBrand, has estimated the current value of this patent to be RM10 million, however the company is awaiting the outcome of clinical trials where the product has been tested to treat a different skin problem. If the trials are successful, the value of the product is estimated to be RM15 million. Also included in the company’s statement of financial position is RM2 million for medical research that has been conducted on behalf of a client.

b). PNB has developed and patented a new drug which has been approved for clinical use. The costs of developing the drug were RM12 million. Based on early assessments on its sales success, HebatBrand, has estimated its market value at RM20 million.

c).PNB’s manufacturing facilities have recently received a favorable inspection by government medical scientists. Consequently, the company has been granted an exclusive five-year license to manufacture and distribute a new vaccine. Although the license had no direct cost PNB, its directors feel its granting is a reflection of the company’s standing and have asked HebatBrand to value the license. Accordingly, they have placed a value of RM10 million on it.                                                                             

d) In the current accounting period, PNB has spent RM3 million sending its staff PNB’s on specialist training courses. Whilst these courses have been expensive, they have led to a marked improvement in production quality and staff now needs less supervision. This in turn led to an increase in revenue and cost reductions. The directors of PNB believe these benefits will continue at least three years and wish to treat the training costs as an asset.

e). In December 2019, PNB paid RM5 million for a television advertising campaign for its products that will run for 6 months from 1 January 2020 to 30 June 2020. The directors believe that increased sales as a result of the publicity will continue for two years from the start of the advertisements.

Required:

Explain with reasons and justifications how the directors of PNB should treat the above items in the financial statements for the year ended 31 March 2020.

Note: The values given by Hebatbrand can be taken as being reliable measurements. Ignore depreciation.

please be inform that the formula used and process of how each number have been get must be mention

Short term decision making  

Shot plc manufactures three types of furniture products - chairs, stools and tables. The budgeted unit cost and resource requirements of each of these items are detailed below:

These volumes are believed to equal the market demand for these products. The fixed overhead costs are attributed to the three products on the basis of direct labour hours. The labour rate is $4.00 per hour. The cost of timber is $2.00 per square metre. The products are made from a specialist timber. A memo from the purchasing manager advises you that because of a problem with the supplier it is to be assumed that this specialist timber is limited in supply to 20,000 square metres per annum.

The sales director has already accepted an order for 500 chairs, 100 stools and 150 tables, which if not supplied would incur a financial penalty of $2,000. These quantities are included in the market demand estimates above. The selling prices per unit of the three products are:

-

Chair $20.00

Stool $50.00 Table $40.00

Required:

1. Determine the optimum production plan and state the net profit that this should yield per annum.                                                                                                           
2. Discuss one qualitative factor that you should consider (especially in the long term) in your decision in part (a).                                                                              

Entries for Direct Labor and Factory Overhead

Schumacher Industries Inc. manufactures recreational vehicles. Schumacher Industries uses a job order cost system. The time tickets from June jobs are summarized as follows:

Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $30 per direct labor hour. The direct labor rate is $17 per hour.

a. Journalize the entry to record the factory labor costs. If an amount box does not require an entry, leave it blank.

b. Journalize the entry to apply factory overhead to production for June. If an amount box does not require an entry, leave it blank.

Cost of Production Report

The Cutting Department of Karachi Carpet Company provides the following data for January. Assume that all materials are added at the beginning of the process.

a. Prepare a cost of production report for the Cutting Department. If an amount is zero or a blank, enter in "0". For the cost per equivalent unit computations, round your answers to two decimal places.

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b. Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (December). If required, round your answers to two decimal places.

On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company’s first month.

April 1 Nozomi invested $41,000 cash and computer equipment worth $25,000 in the company in exchange for common stock.

April 2 The company rented furnished office space by paying $2,400 cash for the first month’s (April) rent.

April 3 The company purchased $1,200 of office supplies for cash.

April 10 The company paid $2,400 cash for the premium on a 12-month insurance policy. Coverage begins on April 11.

April 14 The company paid $900 cash for two weeks' salaries earned by employees.

April 24 The company collected $15,500 cash for commissions earned.

April 28 The company paid $900 cash for two weeks' salaries earned by employees.

April 29 The company paid $250 cash for minor repairs to the company's computer.

April 30 The company paid $1,350 cash for this month's telephone bill.

April 30 The company paid $1,600 cash in dividends.

The company's chart of accounts follows:

Use the following information:

1. Prepaid insurance of $133 has expired this month.
2. At the end of the month, $400 of office supplies are still available.
3. This month’s depreciation on the computer equipment is $400.
4. Employees earned $400 of unpaid and unrecorded salaries as of month-end.
5. The company earned $2,400 of commissions that are not yet billed at month-end.

Required:
1. & 2. Prepare journal entries to record the transactions for April and post them to the ledger accounts in Requirement 6b. The company records prepaid and unearned items in balance sheet accounts.
3. Using account balances from Requirement 6b, prepare an unadjusted trial balance as of April 30.
4. Journalize the adjusting entries for the month and prepare the adjusted trial balance.
5a. Prepare the income statement for the month of April 30.
5b. Prepare the statement of retained earnings for the month of April 30.
5c. Prepare the balance sheet at April 30.
6a. Prepare journal entries to close the temporary accounts and then post to Requirement 6b.
6b. Post the journal entries to the ledger.
7. Prepare a post-closing trial balance.

1. Net Present Value and Competing Projects

   For discount factors use Exhibit 12B.1 and Exhibit 12B.2.

   Spiro Hospital is investigating the possibility of investing in new dialysis equipment. Two local manufacturers of this equipment are being considered as sources of the equipment. After-tax cash inflows for the two competing projects are as follows:
   

   Year		Puro Equipment		Briggs Equipment
   1		$320,000		$120,000
   2		280,000		120,000
   3		240,000		320,000
   4		160,000		400,000
   5		120,000		440,000

   Both projects require an initial investment of $560,000. In both cases, assume that the equipment has a life of 5 years with no salvage value.

   Required:

   Round present value calculations and your final answers to the nearest dollar.

   1. Assuming a discount rate of 10%, compute the net present value of each piece of equipment.

   Puro equipment:	$
   Briggs equipment:	$

   2. A third option has surfaced for equipment purchased from an out-of-state supplier. The cost is also $560,000, but this equipment will produce even cash flows over its 5-year life. What must the annual cash flow be for this equipment to be selected over the other two? Assume a 10% discount rate.
   $ per year

Analyzing Manufacturing Cost Accounts

Fire Rock Company manufactures designer paddle boards in a wide variety of sizes and styles. The following incomplete ledger accounts refer to transactions that are summarized for June:

In addition, the following information is available:

a. Materials and direct labor were applied to six jobs in June:

b. Factory overhead is applied to each job at a rate of 160% of direct labor cost.

c. The June 1 Work in Process balance consisted of two jobs, as follows:

d. Customer jobs completed and units sold in June were as follows:

1. Determine the missing amounts associated with each letter and complete the following table. If required, round amounts to the nearest dollar. If an answer is zero, enter in "0". Enter all amounts as positive numbers.

a. Materials requisitions $

b. Work in process beginning balance $

c. Direct materials $

d. Direct labor $

e. Factory overhead applied $

f. Completed jobs $

g. Cost of goods sold $

h. Indirect labor $

2. Determine the June 30 balances for each of the inventory accounts and factory overhead. Use the minus sign to indicate any credit balances.