Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 2.20 ounces $ 23.00 per ounce $ 50.60 Direct labor 0.70 hours $ 12.00 per hour 8.40 Variable manufacturing overhead 0.70 hours $ 3.00 per hour 2.10 Total standard cost per unit $ 61.10 During November, the following activity was recorded related to the production of Fludex: Materials purchased, 11,000 ounces at a cost of $237,600. There was no beginning inventory of materials; however, at the end of the month, 2,650 ounces of material remained in ending inventory. The company employs 18 lab technicians to work on the production of Fludex. During November, they each worked an average of 190 hours at an average pay rate of $10.50 per hour. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $6,200. During November, the company produced 3,750 units of Fludex. Required: 1. For direct materials: a. Compute the price and quantity variances. b. The materials were purchased from a new supplier who is anxious to enter into a long-term purchase contract. Would you recommend that the company sign the contract? 2. For direct labor: a. Compute the rate and efficiency variances. b. In the past, the 18 technicians employed in the production of Fludex consisted of 5 senior technicians and 13 assistants. During November, the company experimented with fewer senior technicians and more assistants in order to reduce labor costs. Would you recommend that the new labor mix be continued? 3. Compute the variable overhead rate and efficiency variances.

The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31:

Required:

1. Prepare a traditional income statement for the quarter ended March 31.

2. Prepare a contribution format income statement for the quarter ended March 31.

3. What was the contribution margin per unit?

Prepare a traditional income statement for the quarter ended March 31.

Prepare a contribution format income statement for the quarter ended March 31.

What was the contribution margin per unit? (Round your final answer to nearest whole dollar.)

Thermal Rising, Inc., makes paragliders for sale through specialty sporting goods stores. The company has a standard paraglider model, but also makes custom-designed paragliders. Management has designed an activity-based costing system with the following activity cost pools and activity rates:

Activity Cost Pool Activity Rate

Supporting direct labor ....................... $26 per direct labor-hour

Order processing ................................ $284 per order

Custom design processing ................. $186 per custom design

Customer service ............................... $379 per customer

Management would like an analysis of the profitability of a particular customer, Big Sky Outfitters, which has ordered the following products over the last 12 months:

The company’s direct labor rate is $19.50 per hour.

Required:

Using the company’s activity-based costing system, compute the total customer margin.

This course is about Understanding Finanical Statement.

There are two companies which are competitors(same SIC classifications). The Coca Cola Company will be a publicly-traded U.S. company which reports under GAAP and Coca- Cola European Partners will be a foreign competitor, also publicly-traded, which reports under IFRS. Here is the requirement: briefly describe, in your own words and citing company literature where appropriate, the companies under consideration. Finally “which company would be the better investment?” based upon your ratio analysis.

Choose a firm that has been involved in a recent Foreign Corrupt Practice Act violations or the Sarbanes Oxley law violations controversy ( get 2018 recent event) - Analyze in 300-500 words

a) Describe the firm's operations

b) Identify the firm's CEO, CFO and external auditors

c) Denote the circumstances surrounding the violation.

Tamarisk Company is a multiproduct firm. Presented below is information concerning one of its products, the Hawkeye.

(a)

Correct answer iconYour answer is correct.

Calculate average-cost per unit. (Round answer to 4 decimal places, e.g. 2.7613.)

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Assistance Used

Attempts: 1 of 3 used

(b)

Incorrect answer iconYour answer is incorrect.

Compute cost of goods sold, assuming Tamarisk uses: (Round average cost per unit to 4 decimal places, e.g. 2.7631 and final answers to 0 decimal places, e.g. 6,548.)

Butch's Pool Service & Supply, Inc. (BPSS) is completing the accounting process for the year just ended, December 31, 2018. The transactions during 2018 have been journalized and posted. The following data with respect to adjusting entries are available:

1. BPSS owed $7,500 wages to the office receptionist and three assistants for working the last 10 days in December. The employees will be paid in January 2019.
2. On October 1, 2018, PPSS received $24,000 from customers who prepaid pool cleaning service for one year beginning on November 1, 2018.
3. The company received a $520 utility bill for December utility usage. It will be paid in January 2018.
4. BPSS borrowed $30,000 from a local bank on May 1, 2018, signing a note with a 10 percent interest rate. The note and interest are due on May 1, 2019.
5. On December 31, 2018, BPSS cleaned and winterized a customer's pool for $800, but the service was not yet recorded on December 31.
6. On August 1, 2018, BPSS purchased a two-year insurance policy for $4,200, with coverage beginning on that date. The amount was recorded as Prepaid Insurance when paid.
7. On December 31, 2018, BPSS had $3,100 of pool cleaning supplies on hand. During 2018, BPSS purchased supplies costing $23,000 from Pool Corporation, Inc., and had $2,400 of supplies on hand on December 31, 2017.
8. BPSS estimated that depreciation on its buildings and equipment was $8,300 for the year.
9. At December 31, 2018, $110 of interest on investments was earned that will be received in 2019.

Prepare adjusting entries for Butch's Pool Service & Supply, Inc., on December 31, 2018.

Campbell Manufacturing pays its production managers a bonus based on the company’s profitability. During the two most recent years, the company maintained the same cost structure to manufacture its products.

(Assume that selling and administrative expenses are associated with goods sold.)

Levine sells its products for $109.3 per unit.

Required

1. Prepare income statements based on absorption costing for 2018 and 2019.

2. Since Levine sold the same number of units in 2018 and 2019, why did net income increase in 2019?

During their senior year at Clarkson College, two business students, Gerry Keating and Louis Lamont, began a part-time business making personal computers. They bought the various components from a local supplier and assembled the machines in the basement of a friend’s house. Their only cost was $359 for parts; they sold each computer for $638. They were able to make three machines per week and to sell them to fellow students. The activity was appropriately called Keating & Lamont Computers (KLC). The product quality was good, and as graduation approached, orders were coming in much faster than KLC could fill them.

A national CPA firm made Ms. Lamont an attractive offer of employment, and a large electronics company was ready to hire Mr. Keating. Students and faculty at Clarkson College, however, encouraged the two to make KLC a full-time venture. The college administration had decided to require all students in the schools of business and engineering to buy their own computers beginning in the coming fall term. It was believed that the quality and price of the KLC machines would attract the college bookstore to sign a contract to buy a minimum of 1,000 units the first year for $501 each. The bookstore sales were likely to reach 2,000 units per year, but the manager would not make an initial commitment beyond 1,000.

The prospect of $501,000 in annual sales for KLC caused the two young entrepreneurs to wonder about the wisdom of accepting their job offers. Before making a decision, they decided to investigate the implications of making KLC a full-time operation. Their study provided the following information relating to the production of their computers:

The two owners expected to devote their time to the sales and administrative aspects of the business.

Required

1. Classify each cost item into the categories of direct materials, direct labor, and manufacturing overhead.

2. Classify each cost item as either variable or fixed.

3. What is the cost per computer if KLC produces 1,000 units per year? What is the cost per unit if KLC produces 2,000 units per year?

4. If the job offers for Mr. Keating and Ms. Lamont totaled $93,000, would you recommend that they accept the offers or proceed with plans to make KLC a full-time venture?

3.Refer to FNM's last publically reported Balance Sheet before it was placed into Conservatorship:

If you believed that FNM's mortgage assets, as reported, were inflated by 70,000,000K, what journal entries would you use to correct this error? Choose all the correct entries.

a) dr Mortgage Write Down Expense 70,000,000

b) dr Short/Current Long Term Debt 70,000,000

c) cr Cash 70,000,000

d) cr Total Assets 70,000,000

e) dr Mortgages 70,000,000

f) cr Mortgage Write Down Expense 70,000,000

g) cr Mortgages 70,000,000

4.Refer to the information provided in Question 3 above. After you have corrected the value of FNM's mortgage assets, what is the value of the firm's equity?  

Financial Statements from the End-of-Period Spreadsheet

Demo Consulting is a consulting firm owned and operated by Jesse Flatt. The following end-of-period spreadsheet was prepared for the year ended August 31, 20Y9:

Based on the preceding spreadsheet, prepare an income statement for Demo Consulting.

Based on the preceding spreadsheet, prepare a statement of stockholders’ equity for Demo Consulting. During the year ended August 31, 20Y9, $3,100 of additional common stock was issued. If an amount box does not require an entry, leave it blank. If a net loss is incurred or dividends were paid, enter that amount as a negative number using a minus sign.

Based on the preceding spreadsheet, prepare a balance sheet for Demo Consulting.

CompUSA Inc. sells computer hardware. It also markets related software and software-support services. The company prepares annual forecasts for sales, of which the first six months of 2019 are given below.

In a typical month, total sales are broken down as follows: cash sales, 30%; VISA® credit card sales, 65%; and 5% open account (the company’s own charge accounts). For budgeting purposes, assume that cash sales plus bank credit card sales are received in the month of sale; bank credit card sales are subject to a 3% processing fee, which is deducted daily at the time of deposit into CompUSA’s cash account with the bank. Cash receipts from collection of accounts receivable typically occur as follows: 20% in the month of sale, 50% in the month following the month of sale, and 27% in the second month following the month of sale. The remaining receivables generally turn out to be uncollectible.

CompUSA’s month-end inventory requirements for computer hardware units are 30% of the following month’s estimated sales. A one-month lead time is required for delivery from the hardware distributor. Thus, orders for computer hardware units are generally placed by CompUSA on the 25th of each month to ensure availability in the store on the first day of the month needed. These units are purchased on credit, under the following terms: n/45, measured from the time the units are delivered to CompUSA. Assume that CompUSA takes the maximum amount of time to pay its invoices. On average, the purchase price for hardware units runs 60% of selling price.

Required:

1. Calculate estimated cash receipts for April 2019.

2. The company is looking at the number of hardware units to order on January 25.

a. Determine the estimated number of units to be ordered.

b. Calculate the dollar cost (per unit and total) for these units.

3. Cash planning in this line of business is critical to success. Management feels that the assumption of selling price per unit ($3,000) is firm—at least for the foreseeable future. Also, it is comfortable with the 30% rate for end-of-month inventories. It is not so sure, however, about (a) the Cost of Goods Sold (CGS) rate (because of the state of flux in the supplier market) and (b) the level of predicted sales in March 2019. Discussions with marketing and purchasing suggest that three outcomes are possible for each of these two variables, as follows:

The preceding outcomes are assumed to be independent, which means that there are nine possible combinations (3 × 3). You are asked to conduct a sensitivity analysis to determine the range of possible cash outflows for April 10, under different combinations of the above. Assume, for simplicity, that sales volume for April is fixed. Complete the following table:

1. XYZ Sporting Corp. manufactures two types of products – Footwear and Apparel. The following table shows the estimated annual overhead cost of XYZ for the year of 2019 -

XYZ usually deploys a plantwide overhead rate based on machine hours. But the management of the company decided to implement an activity-based costing (ABC) system to allocate all $2,150,000 of its overhead costs to three cost pools –

The following table shows the distribution of resource consumption across the activity cost pools

1. Calculate the company’s plantwide overhead rate. Using the plantwide overhead rate,how much overhead cost is allocated to Apparel and how much is allocated to Footwear?
2. Calculate the activity rates of Customer Orders, Product Design, and Order Size. )
3. Using the ABC system, how much overhead cost is allocated to Apparel and how much is allocated to Footwear?