Campbell Soup Company estimates that 240,000 direct labor hours will be worked during 2018 in the Mixing Department. On this basis, the following budgeted manufacturing overhead data are computed:

It is estimated that direct labor hours worked each month will range from 5,000 to 20,000 hours. During June, 15,000 direct labor hours were worked and the following overhead costs were incurred (shown in the chart below):

Instructions:

1. Prepare a monthly flexible manufacturing overhead budget for the Mixing Department for each increment of 5,000 direct labor hours over the relevant range for the year ending December 31, 2018.
2. Prepare a manufacturing overhead budget report for June.

Assume that Wal-Mart Stores, Inc. has decided to surface and maintain for 10 years a vacant lot next to one of its stores to serve as a parking lot for customers. Management is considering the following bids involving two different qualities of surfacing for a parking area of 11,600 square yards.

Bid A: A surface that costs $6.25 per square yard to install. This surface will have to be replaced at the end of 5 years. The annual maintenance cost on this surface is estimated at 25 cents per square yard for each year except the last year of its service. The replacement surface will be similar to the initial surface.

Bid B: A surface that costs $10.25 per square yard to install. This surface has a probable useful life of 10 years and will require annual maintenance in each year except the last year, at an estimated cost of 11 cents per square yard.

Click here to view factor tables

Compute present value of the bids. You may assume that the cost of capital is 11%, that the annual maintenance expenditures are incurred at the end of each year, and that prices are not expected to change during the next 10 years. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

Which bid should be accepted by Wal-Mart.

NAME OF ACCOUNTS Dr. Balance £ Cr. Balance £ Opening stock 8,000 Buildings 15,000 Debtors 4,000 Purchases 22,000 Salaries 1,200 Sales 36,000 Discounts 800 Sales returns 1,000 Furniture 3,000 Office expense 300 Wages 600 Purchase returns 600 Interest 500 Travelling expenses 400 Insurance 600 Machinery 8,000 Carriage on purchases 800 Commission 600 Cash in hand 1,400 Rent and rates 2,400 Capital 25,000 Creditors 8,000 70,100 70,100 Following adjustments need to be made: a) Closing stock was valued at £ 9,000 b) Office expenses: £ 2,000 and wages: 300 are outstanding c) Depreciate building by 2%, machinery by 10% and furniture by 20% d) Prepaid Insurance: £ 100 Required: 1) Prepare Trading & Profit and Loss account for the year ended 31 December 2017 2) Prepare Balance Sheet as on 31 December 2017

Doggie Pawz produces two models of dog beds: rectangle and circle. The following information about the costs to produce the company’s products has been provided.

a. If all costs are allocated based on machine hours, what is the rate per machine hour?

b. If all costs are allocated based on machine hours, what is the amount allocated to circle dog beds?

c. If ABC uses activity based costing based on the cost pools above, what is the rate for unit-level costs?

d. If ABC uses activity based costing based on the cost pools above, what is the rate for batch-level costs?

e. If ABC uses activity based costing based on the cost pools above, what is the rate for product-level costs?

f. If ABC uses activity based costing based on the cost pools above, what is the rate for facility-level costs?

g. If ABC uses activity based costing based on the cost pools above, what amount is allocated to rectangle beds?

Label and place your final answer for a-g at the top of the answer box. Then after the answer to g, label and show your work for each part of the question. Just show me numbers - that is usually enough for me to follow your logic.

Koontz Company manufactures a number of products. The standards relating to one of these products are shown below, along with actual cost data for May.

The production superintendent was pleased when he saw this report and commented: “This $0.83 excess cost is well within the 5 percent limit management has set for acceptable variances. It's obvious that there's not much to worry about with this product."

Actual production for the month was 11,000 units. Variable overhead cost is assigned to products on the basis of direct labor-hours. There were no beginning or ending inventories of materials.

Required:

2. How much of the $0.83 excess unit cost is traceable to each of the variances computed in (1) above.

3. How much of the $0.83 excess unit cost is traceable to apparent inefficient use of labor time?

2

3

On January 1, 2018, the general ledger of 3D Family Fireworks includes the following account balances:
  

During January 2018, the following transactions occur:
  

The following information is available on January 31, 2018.

1. The company estimates future uncollectible accounts. The company determines $5,800 of accounts receivable on January 31 are past due, and 20% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 5% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.)
2. Supplies at the end of January total $650.
3. Accrued interest revenue on notes receivable for January. Interest is expected to be received each December 31.
4. Unpaid salaries at the end of January are $34,300.

1. Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1 - 7). Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances.

2. Record the adjusting entries in the 'General Journal' tab (these are shown as items 8-11).

3. Review the adjusted 'Trial Balance' as of January 31, 2018, in the 'Trial Balance' tab.

4. Prepare an income statement for the period ended January 31, 2018, in the 'Income Statement' tab.

5. Prepare a classified balance sheet as of January 31, 2018 in the 'Balance Sheet' tab.

6. Record the closing entries in the 'General Journal' tab (these are shown as items 12 and 13).

7. Using the information from the requirements above, complete the 'Analysis' tab.

Please help

the following selected circumstances related to pending lawsuits for Erismus, Inc. Erismus's fiscal year ends on December 31st. Financial statements are issued on March 2017. Erismus prepares its financial statements according to us gaap.

indicate the amount of asset or liability that Erismus would record and explain your answer.

1. Erismus is defending against a lawsuit. Erismus's management believes the company has a slightly worse than 50-50 chance eventually prevailing in court and that if it loses the judgement will be $1000000.
2. Erismus is defending against a lawsuit. Erismus's management believes it is probable that the company will lose in court. If it loses, management believes that damages could fall anywhere in the range of 2 million dollars to four million dollars with any damage in that range equally likely.
3. Erismus is defending against a lawsuit. Erismus's management believes it is probable that the company will lose in Court. if it loses, management believes the damages will eventually be $5000000 with the present value of 3500000 dollars.
4. Erismus is a plaintiff in a lawsuit. Erismus management believes it is probable that the company eventually will prevail in court, and that if it prevails the judgement will be $1000000.
5. Erismus is a plaintiff in a lawsuit. Erismus's management believes it is virtually certain that the company eventually will prevail in court and that if it reveals the judgment will be $500,000.

E12-4 (L01,2,5) (Intangible Amortization) The following is selected information for Alatorre Company.
1. Alatorre purchased a patent from Vania Co. for $1,000,000 on January 1, 2015. The patent is being amortized over its remaining legal life of 10 years, expiring on January 1, 2025. During 2017, Alatorre determined that the economic benefits of the patent would not last longer than 6 years from the date of acquisition. What amount should be reported in the bal-ance sheet for the patent, net of accumulated amortization, at December 31, 2017?
2. Alatorre bought a franchise from Alexander Co. on January 1, 2016, for $400,000. The carrying amount of the franchise on Alexander’s books on January 1, 2016, was $500,000. The franchise agreement had an estimated useful life of 30 years. Because Alatorre must enter a competitive bidding at the end of 2018, it is unlikely that the franchise will be retained beyond 2025. What amount should be amortized for the year ended December 31, 2017?
3. On January 1, 2017, Alatorre incurred organization costs of $275,000. What amount of organization expense should be reported in 2017?
4. Alatorre purchased the license for distribution of a popular consumer product on January 1, 2017, for $150,000. It is expected that this product will generate cash flows for an indefinite period of time. The license has an initial term of 5 years but by paying a nominal fee, Alatorre can renew the license indefinitely for successive 5-year terms. What amount should be amortized for the year ended December 31, 2017?
Instructions Answer the questions asked about each of the factual situations.

Using an indirect method statement of cash flows from a publicly traded company, discuss an item that was recorded when calculating net income, but is adjusted as an increase or decrease to determine cash provided by (used by) operating activities, specifically an asset, liability, gain, or loss. Include a summary of how that item impacted net income (or net loss) and why there is an adjustment necessary to determine cash from operations.

Your colleague claims that all of the statements below regarding a partner’s sale or exchange of a partnership interest are true. Do you agree? If so, why? If not, why not?

a. The sale or exchange of a partner’s interest in a partnership usually results in a capital gain or loss.

b. Gain or loss recognized by the selling partner is the difference between the amount realized and the adjusted basis of the partner’s interest in the partnership.

c. The selling partner must include, as part of the amount realized, any partnership liability he/she is relieved of.

d. The installment method cannot be used by the partner who sells a partnership interest at a gain.

Prior to the financial recession in the late 2000s, some companies had built up significant cash balances. By 2010, discussions began about whether “cash hoarding” by firms was an appropriate activity or if it was hurting the economic recovery. Research this issue and answer the following questions:

• What are the advantages of having a large cash balance? Please describe and provide examples.
• What are the disadvantages of having a large cash balance? Please describe and provide examples.
• Research a publicly traded company that holds a sizable amounts of cash and liquid investments on their balance sheets. Describe the company, the balance and how that balance has varied over the past three years.

Diversified semiconductors sells perishable electronic components. some must be shipped and stored in reusable protective containers. customers pay a deposit for each container received. the deposit is equal to the containers cost. they receive a refund when the container is returned. during 2016, deposits collected on containers shipped where $850,000. deposits are forfeited if containers are not returned within 18 months. containers held by customers at January one 2016 represented deposits a $530,000. in 2016, $790,000 was refunded and deposits forfeited were $35,000.

1. prepare the appropriate journal entries for the deposits received and return during 2016.

2. determine the liability for refundable deposits to be reported on the December 31st 2016 balance sheet.

1. Financial information for Sigma Company is presented below. Calculate the following ratios for 2018:

(a) Inventory turnover.

(b) Accounts receivable turnover.

(c) Return on total assets.

(d) Times interest earned.

(e) Total asset turnover.

3. Xavier is starting an online business called ‘footbook’ that is a social networking website where people post pictures of their feet. Xavier has a lunch meeting with his sister to discuss whether she would like to invest in the business. He tells her “if I don’t hear from you by 2 Friday I will assume you agree to my offer.” Friday passes and Sally has not contacted Xavier. Can Xavier legally claim the investment money from Sally?

Current operating income for Bay Area Cycles Co. is $32,000. Selling price per unit is $100, the contribution margin ratio is 20%, and fixed expense is $128,000.

Required:

1. Calculate Bay Area Cycle’s per unit variable expense and contribution margin. How many units are currently being sold?

2. How many additional unit sales would be necessary to achieve operating income of $80,000?