Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 8%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $108 to purchase these supplies.

For years, Worley believed that the 8% markup covered its selling and administrative expenses and provided a reasonable profit. However, in the face of declining profits, Worley decided to implement an activity-based costing system to help improve its understanding of customer profitability. The company broke its selling and administrative expenses into five activities as shown:

Worley gathered the data below for two of the many hospitals that it serves—University and Memorial (each hospital purchased medical supplies that had cost Worley $37,000 to buy from manufacturers):

Required:

1. Compute the total revenue that Worley would receive from University and Memorial.

2. Compute the activity rate for each activity cost pool.

3. Compute the total activity costs that would be assigned to University and Memorial.

4. Compute Worley’s customer margin for University and Memorial. (Hint: Do not overlook the $37,000 cost of goods sold that Worley incurred serving each hospital.)

At the beginning of the year, Young Company bought three used machines from Vince, Inc. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts.

By the end of the first year, each machine had been operating 6,000 hours.

Required:

1. Compute the cost of each machine.
2. Prepare the journal entry to record depreciation expense at the end of year 1, assuming the following: TIP: Remember that the formula for double-declining-balance uses cost minus accumulated depreciation (not residual value).

Flexible Budget for Varying Levels of Activity Nashler Company has the following budgeted variable costs per unit produced: Direct materials $7.20 Direct labor 1.54 Variable overhead: Supplies 0.23 Maintenance 0.19 Power 0.18 Budgeted fixed overhead costs per month include supervision of $98,000, depreciation of $76,000, and other overhead of $245,000. In March, Nashler Company produced 170,000 units and had the following actual costs: Direct materials $1,220,000 Direct labor 268,300 Supplies 39,600 Maintenance 32,250 Power 30,520 Supervision 99,400 Depreciation 76,000 Other overhead 244,300 Required: 1. Prepare a performance report for Nashler Company comparing actual costs with the flexible budget for actual units produced. If there is no variance, enter "0" for the amount and select "NA" in the last column. Nashler Company Performance Report Actual Cost Flexible Budget Cost Variance Direct materials $ $ $ Favorable Direct labor Unfavorable Supplies Unfavorable Maintenance Favorable Power Favorable Supervision Unfavorable Depreciation NA Other overhead Favorable Total cost $ $ $ Unfavorable Feedback Budgets can be used to examine the efficiency and effectiveness of a company. 2. What if Nashler Company’s actual direct materials cost were $1,224,000? How would that affect the variance for direct materials? If an amount is zero, enter "0". The materials variance would be $ . The total cost variance would increase by $ .

Clair Walsh wishes to purchase​ a(n) $630,000 house. She has accumulated a $110,000 down​ payment, but she wishes to borrow $520,000 on a 25​-year mortgage. For​ simplicity, assume annual mortgage payments occur at the end of each year and there are no loan fees.

Please pretend for a moment that you are the accounts receivable manager for JBX Industries, a local manufacturing company. JBX has the following issues as of 12/31/2017:

1. It is sitting on nearly $1 million in accounts receivable.
2. However, almost $100,000 of that amount is expected to be uncollectible.
3. JBX needs this cash to purchase additional raw materials for its future sales.

What are some ways you could collect on these receivables? What kind of credit policies would you put in place to ensure you only took on the best clients?  

On January 1, the first day of the fiscal year, a company issues a $1,350,000, 11%, five-year bond that pays semiannual interest of $74,250 ($1,350,000 x 11% x ½), receiving cash of $1,512,610. Journalize the bond issuance. Refer to the Chart of Accounts for exact wording of account titles.

CHART OF ACCOUNTS- General Ledger

ASSETS- 110 Cash, 111 Petty Cash, 121 Accounts Receivable, 122 Allowance for Doubtful Accounts, 126 Interest Receivable, 127 Notes Receivable, 131 Merchandise Inventory, 141 Office Supplies, 191 Land, 194 Office Equipment, 195 Accumulated Depreciation-Office Equipment

LIABILITIES- 210 Accounts Payable, 221 Salaries Payable, 231 Sales Tax Payable, 232 Interest Payable ,241 Notes Payable,251 Bonds Payable, 252 Discount on Bonds Payable, 253 Premium on Bonds Payable

EQUITY- 311 Common Stock, 312 Paid-In Capital in Excess of Par-Common Stock, 315 Treasury Stock, 321 Preferred Stock, 322 Paid-In Capital in Excess of Par-Preferred Stock, 331 Paid-In Capital from Sale of Treasury Stock, 340 Retained Earnings, 351 Cash Dividends, 352 Stock Dividends, 390 Income Summary

REVENUE- 410 Sales, 610 Interest Revenue, 611 Gain on Redemption of Bonds

EXPENSES- 510 Cost of Merchandise Sold, 515 Credit Card Expense, 516 Cash Short and Over, 522 Office Salaries Expense, 531 Advertising Expense, 532 Delivery Expense, 533 Repairs Expense, 535 Rent Expense, 536 Insurance Expense, 537 Office Supplies Expense, 541 Bad Debt Expense, 562 Depreciation Expense-Office Equipment, 590 Miscellaneous Expense, 710 Interest Expense, 711 Loss on Redemption of Bonds

On October 31, 2017, Cool Company sells a truck that originally cost 140,000 $ for 95,000$ cash. The truck was placed in service on January 1, 2012. It was depreciated using the straight-line method with an estimated salvage value of 28,000 and a useful life of 10 years. Record all the transaction. On July 19, 2018, Cool Co. purchased a machine for 260,000 SA from Saudi Machine Company (SMC). Omar gave SMC 7% note due in 120 days in payment for the machine. What is the maturity date of the note? How much interest will Omar pay to SMC on this note? Record the note? On October 16, 2018, Cool informs us that the company is unable to pay the note or interest?

Oriental Hotel Bhd owned a few hotels in Malaysia. Their hotel in Melaka is set against a picturesque vista of Melaka’s most famous historical landmarks pf Melaka Raya. The location is close to Melaka City Centre with cheerful nightlife and mere minutes from the acclaimed UNESCO World Heritage site. The office management operates in the same hotel building as the hotel services provided to its guest. The company itself manages the hotel except for the laundry services which was transferred to its tenant, Cuci-Cuci Services Sdn. BHd.

Oriental Hotel Bhd take another step forward in its expansion plan with the opening a new hotel in the southern region in Malaysia. On 1 January 20X5, the company acquired a land for RM3,200,000 to construct a 4-star hotel building in Pangerang, Johor. Construction of the hotel building commenced on 1 March 20X5 and it was completed on 31 January 20X7, but was only used on 1 March 20X7.Total construction cost incurred excluding borrowing costs were RM34,000,000. The construction cost also includes the rectification of RM200,000. In order to finance the construction, the company took an 8%, 3 year-term loan of RM30,000,000 on 1 February 20X5. The company received a government grant of RM1,400,000 on 1 February 20X7 for the newly constructed hotel building. It is the company’s policy to use deferred income method for the government grant received.

Required:
Explain the accounting treatment for government grant received and how will it differ from the alternative method.

4. Greener Grass Fertilizer Company plans to sell 210,000 units of finished product in July and anticipates a growth rate in sales of 5 percent per month. The desired monthly ending inventory in units of finished product is 75 percent of the next month’s estimated sales. There are 157,500 finished units in inventory on June 30. Each unit of finished product requires 5 pounds of raw material at a cost of $1.25 per pound. There are 750,000 pounds of raw material in inventory on June 30.

Required:

1. Compute the company’s total required production in units of finished product for the entire three-month period ending September 30. (Round all intermediate calculations and your final answer to the nearest unit.)

2. Independent of your answer to requirement (1), assume the company plans to produce 800,000 units of finished product in the three-month period ending September 30, and to have raw-material inventory on hand at the end of the three-month period equal to 25 percent of the use in that period. Compute the total estimated cost of raw-material purchases for the entire three-month period ending September 30.

1.) In cell H9 create a VLOOKUP to indicate the description Expensive for pups priced $2,000 or more, Moderate for pups priced $1,000 or more but below $2,000, Good Dealfor pups priced $500 or more but less than $1,000 and Cheapfor all pups priced less than $500.  Begin the lookup table in cell E1.  Copy the VLOOKUP in cell H9 to cells H10:H202. 2.) In cell I9 create a Nested IF to duplicate the results of #1 above.  Copy the nested If in cell I9 to cells I10:I202. 3.) Sort the database by AKC Group and within AKC Group by Breed and within Breed by Color (all ascending order).  Create a Subtotal report showing the average price by AKC Group and the total number of pups available for each dog breed. Change to outline level 3.  Right-mouse click on the Sheet 1worksheet tab. Select “Move or Copy” and check mark “Create a copy” and click on (move to end).  Name the newly created worksheet tab, “Subtotal.”   Return to Sheet1and remove the subtotal report by clicking on the “Remove All” button in the Data/Subtotal menu. 4.) Use the “unique records only” feature of the Advanced Filter to indicate the unique varieties of dog colors and breeds.  Start the unique dog breeds in K1 and the unique dog colors in M1. Place the unique dog breed and dog color combinations starting in cell O1.  (You will have to do three separate Unique Advanced Filters.) 5.) Note that none of the filters in #4 require a criterion.  To demonstrate a Unique Filter witha Criteria output the unique breeds with a price of $2,500 or more.  Start your criteria in R1.  Start your output in R4. Output just the Breed names that meet the criteria.  (Check figure: 8) 6.) Insert a new worksheet.  On Sheet 3, create a one variable data table that indicates the total number of pups available for each breed and the average price for each breed.  (Copy/paste the Unique dog breeds extracted in #4.)  Place the northwest corner of the table in cell A5. Begin the required criteria range in cell A1.7.) Insert a new worksheet.  On Sheet 4, create a two variable data table that indicates the total number of pups available by dog breed and by dog color.  (Use the unique dog breeds & unique colors extracted in #4. Use the copy & paste special / transpose to copy vertical text as horizontal text.) Place the northwest corner of the table in cell A5.  Begin the required criteria range in cell A1. 8.) Turn off the display of zeroes in Sheet 4.  File ribbon / Excel Options/Advanced (scroll down to Display Options for this Worksheet: Sheet 4)  Remove the check mark in front of:   Show a zero in cells that have a zero value. 9.) Create a pivot table that indicates the total number of pups available by breed and the average price for each breed.  Place the northwest corner of the pivot table in cell E4 on Sheet 3. 10.) Create a pivot table that indicates the total number of pups available by dog breed and by dog color.  Place the pivot table as a new worksheet.  

explain different methods of presenting analysis of expenses and how we should choose these methods for application in company

This question regards life insurance:

1. What makes someone a candidate for the product? (age, life circumstances, income, etc.).  
2. How can you find a pool of potential customers for this service? What information can you find or purchase, such as lists? How many prospects could you come up with to start a conversation (f2f, phone, email)? Recognize that most of the prospects will (a) not need, (b) not be able to buy, or (c) already have insurance. That is why developing a very large pool of leads is so important to selling success.
3. What questions would you ask to verify if there is both need and ability to purchase the product?

Problem 11-18 Relevant Cost Analysis in a Variety of Situations [LO11-2, LO11-3, LO11-4]

Andretti Company has a single product called a Dak. The company normally produces and sells 120,000 Daks each year at a selling price of $48 per unit. The company’s unit costs at this level of activity are given below:

A number of questions relating to the production and sale of Daks follow. Each question is independent.

Required:

1-a. Assume that Andretti Company has sufficient capacity to produce 162,000 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its unit sales by 35% above the present 120,000 units each year if it were willing to increase the fixed selling expenses by $120,000. What is the financial advantage (disadvantage) of investing an additional $120,000 in fixed selling expenses?

1-b. Would the additional investment be justified?

2. Assume again that Andretti Company has sufficient capacity to produce 162,000 Daks each year. A customer in a foreign market wants to purchase 42,000 Daks. If Andretti accepts this order it would have to pay import duties on the Daks of $3.70 per unit and an additional $29,400 for permits and licenses. The only selling costs that would be associated with the order would be $2.40 per unit shipping cost. What is the break-even price per unit on this order?

3. The company has 800 Daks on hand that have some irregularities and are therefore considered to be "seconds." Due to the irregularities, it will be impossible to sell these units at the normal price through regular distribution channels. What is the unit cost figure that is relevant for setting a minimum selling price?

4. Due to a strike in its supplier’s plant, Andretti Company is unable to purchase more material for the production of Daks. The strike is expected to last for two months. Andretti Company has enough material on hand to operate at 25% of normal levels for the two-month period. As an alternative, Andretti could close its plant down entirely for the two months. If the plant were closed, fixed manufacturing overhead costs would continue at 40% of their normal level during the two-month period and the fixed selling expenses would be reduced by 20% during the two-month period.

a. How much total contribution margin will Andretti forgo if it closes the plant for two months?

b. How much total fixed cost will the company avoid if it closes the plant for two months?

c. What is the financial advantage (disadvantage) of closing the plant for the two-month period?

d. Should Andretti close the plant for two months?

5. An outside manufacturer has offered to produce 120,000 Daks and ship them directly to Andretti’s customers. If Andretti Company accepts this offer, the facilities that it uses to produce Daks would be idle; however, fixed manufacturing overhead costs would be reduced by 30%. Because the outside manufacturer would pay for all shipping costs, the variable selling expenses would be only two-thirds of their present amount. What is Andretti’s avoidable cost per unit that it should compare to the price quoted by the outside manufacturer?

Workpaper Entries and Consolidated Net Income for Two Years, Cost Method LO 6 LO 3 LO 5 On January 1, 2014, Palmero Company purchased an 80% interest in Santos Company for $2,800,000, at which time Santos Company had retained earnings of $1,000,000 and capital stock of $500,000. On the date of acquisition, the fair value of the assets and liabilities of Santos Company was equal to their book value, except for property and equipment (net), which had a fair value of $1,500,000 and a book value of $600,000. The property and equipment had an estimated remaining life of 10 years. Palmero Company reported net income from independent operations of $400,000 in 2014 and $425,000 in 2015. Santos Company reported net income of $300,000 in 2014 and $400,000 in 2015. Neither company declared dividends in 2014 or 2015. Palmero uses the cost method to account for its investment in Santos. Required: A. Prepare in general journal form the entries necessary in the consolidated statements work papers for the years ended December 31, 2014 and 2015. B. Prepare a schedule or t-account showing the calculation of the controlling and non controlling interest in consolidated net income for the years ended December 31, 2014 and December 31, 2015.