New Age Electronics manufactures surround sound systems and allocates overhead costs using direct-labor hours. They pay their assembly line workers $15 per hour. Unadjusted Cost of Goods Sold for the year was $598,500. Estimated accounting information for the year is as follows:

Overhead costs $140,000

Direct materials $355,000

Direct labor costs (7,000 hours @ $15/hour) $105,000

Direct labor hours 7,000

Machine hours 8,000 Actual accounting information incurred for the year was as follows:

Direct materials $350,000

Direct labor (7,100 hours @ $15/hour) $106,500

Production Manager’s Salary $ 25,000

Customer 800# order line $ 2,000

Plant rent $ 75,000

Depreciation on plant and equipment $ 50,000

Marketing expense $ 20,000

Plant utilities $ 19,000

Indirect materials $ 1,000

Delivery expenses to customers $ 5,000

Depreciation on office equipment $ 5,000

Machine hours 7,900

What actual amount of overhead costs were incurred?

Was overhead under or over allocated/applied and by how much?

$28,000 under-allocated/applied $30,000 under-allocated/applied $28,000 over-allocated/applied $30,000 over-allocated/applied

What is the adjusted Cost of Goods Sold amount?

LG sold 800 G7 phones in October for LG Electronics. As the demand was so high, LG can just deliver the G7 phones in November and it allowed LG Electronics for paying for them just in December and January. When will LG record the revenue from this sale?

A. October

B. November

C. December

D. December and January

On June 1, 2019, Kris Storey established an interior decorating business, Eco-Centric Designs. During the month, Kris completed the following transactions related to the business:

June
1
Kris transferred cash from a personal bank account to an account to be used for the business, $35,000.

1
Paid rent for period of June 1 to end of month, $4,750.

6
Purchased office equipment on account, $14,100.

8
Purchased a van for $28,500 paying $4,500 cash and giving a note payable for the remainder.

10
Purchased supplies for cash, $2,380.

12
Received cash for job completed, $12,200.

15
Paid annual premiums on property and casualty insurance, $3,600.

23
Recorded jobs completed on account and sent invoices to customers, $11,900.

24
Received an invoice for van expenses, to be paid in June, $1,500.

Enter the following transactions on Page 2 of the two-column journal:

June
29
Paid utilities expense, $3,100.

29
Paid miscellaneous expenses, $950.

30
Received cash from customers on account, $7,330.

30
Paid wages of employees, $5,070.

30
Paid creditor a portion of the amount owed for equipment purchased on June 6, $6,825.

30
Withdrew cash for personal use, $1,600.

Required:
1.
Journalize each transaction in a two-column journal beginning on Page 1, referring to the chart of accounts in selecting the accounts to be debited and credited. (Do not insert the post reference numbers until you have posted the entry to the general ledger in part 2.)

You have “volunteered” as an unpaid intern to keep the books for my company that sells hotdogs at the beach. I established the business on September 1 and officially started selling hotdogs 3 days later.

Below are the transactions for September.

September 1                 The owner contributed $20,000 to the business to start the operations.

September 2                 Purchased a fully equipped hotdog cart for $15,000. Paid $5,000 upfront and put the remainder of the balance on account.

September 3                 Purchased hotdogs, sodas and consumable supplies for $500.

September 3                 Purchased 3 months of advertising services from the HB Times newspaper for $300.

September 4                 Sold $200 worth of hot dogs to customers for cash.

September 5                 Sold $300 worth of hot dogs to customers for cash.

September 6                 Sold $100 worth of hotdogs the HBPD on account.

September 8                 The HB surfing contest company asked me to supply hotdogs for their contests and paid $600 in advance for a total of 6 contests.

September 9                 Hired a person to help with the surf contest sales. Paid that person $100 for services performed.

September 10               Purchased hotdogs, sodas and consumable supplies for $500.

September 12               Sold $200 worth of hot dogs to customers for cash.

September 18               The city of HB requested that you provide $500 worth of food for an event they are holding at the pier this coming weekend. The job was completed. The city of HB paid $200 and you billed the difference.

September 25               HBPD paid the balance on account due from September 6.

September 26               Received propane (utility) bill, $100, which was put on account.

September 30               Took out a small business loan from the bank for $15,000 to expand the business. The bank approved the loan due one year from today.

September 30               The owner withdrew $200 in the form of dividends.

Adjustments

1. Expired advertising.
2. Provided hotdogs for 3 surfing contests
3. Depreciation of hotdog cart, $300.

Instructions

1. Journalize all September transactions in the general journal. You may skip journal entry descriptions.
2. Post every journal entry recorded in #1 above to the general ledger. The first transaction on September 1 has been journalized in the general journal and posted to the general ledger as an example.

SOLVE THE FOLLOWING 2 LINEAR PROGRAMMING PROBLEMS USING EXCEL AND THE SOLVER ADD-IN. PLEASE SHOW ME ALL THE EXCEL STEPS.

PROBLEM #1:   Maximize Z = $60X + $90Y

                            Subject to:   60X + 30Y >= 1,500

                                                    100X + 100Y <= 6,000

                                                                             Y >= 30

                                                                          X, Y >= 0

PROBLEM #2: Minimize Z = $3,000X + $1,000Y

                             Subject to:   60X + 20Y >= 1,200

                                                        10X + 10Y >= 400

                                                     40X + 160Y >= 2,400

                                                                         X, Y >= 0

On June 1, Alexander Corporation sold goods to a foreign customer at a price of 1,110,000 pesos and will receive payment in three months on September 1. On June 1, Alexander acquired an option to sell 1,110,000 pesos in three months at a strike price of $0.055. Relevant exchange rates and option premiums for the peso are as follows:

Alexander must close its books and prepare its second-quarter financial statements on June 30.

1. a-1. Assuming that Alexander designates the foreign currency option as a cash flow hedge of a foreign currency receivable, prepare journal entries for these transactions in U.S. dollars.

2. Record the sale of merchandise.

3. 2

   Record the foreign currency option.

4. 3

   Record the entry for changes in the exchange rate.

5. 4

   Record the change in the fair value of the option.

6. 5

   Record the gain or loss on the option.

7. 6

   Record the option expense.

8. 7

   Record the entry for changes in the exchange rate.

9. 8

   Record the change in the fair value of the option.

10. 9

    Record the gain or loss on the option.

11. 10

    Record the option expense.

12. 11

    Record receipt of pesos.

13. 12

    Record the exercise of the option.

14. a-2. What is the impact on net income over the two accounting periods?

15. b-1. Assuming that Alexander designates the foreign currency option as a fair value hedge of a foreign currency receivable, prepare journal entries for these transactions in U.S. dollars.

16. Record the sale of merchandise.

17. 2

    Record the foreign currency option.

18. 3

    Record the entry for changes in the exchange rate.

19. 4

    Record the change in the fair value of the option.

20. 5

    Record the gain or loss on the option.

21. 6

    Record the option expense.

22. 7

    Record the entry for changes in the exchange rate.

23. 8

    Record the change in the fair value of the option.

24. 9

    Record the gain or loss on the option.

25. 10

    Record the option expense.

26. 11

    Record receipt of pesos.

27. 12

    Record the exercise of the option.

28. b-2. What is the impact on net income over the two accounting periods?

Ikerd Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are estimated to total $283,725 for the year, and machine usage is estimated at 126,100 hours.

For the year, $303,850 of overhead costs are incurred and 130,200 hours are used.

Compute the manufacturing overhead rate for the year. (Round answer to 2 decimal places, e.g. 1.25.)

What is the amount of under- or overapplied overhead at December 31?

Prepare the adjusting entry to assign the under- or overapplied overhead for the year to cost of goods sold. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

James River Enterprises issued a bond on January 1, 1996, with a face (maturity) value of $1,000 and a coupon rate of 8% per year. The bond paid interest semiannually, and matured in three years. Prepare an amortization table in the format shown below using the effective interest method, under each of the following circumstances: a. The market rate on the date of issue was 8%. b. The market rate on the date of issue was 10%. c. The market rate on the date of issue was 6%. Please answer (for each of the three above cases) what would be the price, which will be paid and what will be the gain (or loss) if any for James River Enterprises, from this transaction. a. The price for the bond repurchase is: , the resulting gain/loss is: b. The price for the bond repurchase is: , the resulting gain/loss is: c. The price for the bond repurchase is: , the resulting gain/loss is:

The following information relates to R-U Ready Company, a publicly traded company:

1. R. U. Ready acquired Machine B on 1/1/13 by signing a 9% installment note to be paid in 5 equal installments of $65,000. Each payment is due on 12/31, with the first payment due 12/31/13. The useful life of Machine B is 8 years with no residual value. Assume double declining balance depreciation.

Requirement:

Present the accounts and dollar amounts that would appear on comparative balance sheets and income statements for the years ending 12/31/16 and 12/31/15.

List all accounts and dollar amounts. Round dollar amounts to the nearest dollar. You do not need to include cash.  

• For the Classification (Class) column of the Balance Sheet use:
• A for Asset
• L for Liability
• E for Equity

For the Classification (Class) column of the Income Statement use:

• R for Revenue
• E for Expense

On June 1, Haimes Company spent $200,000 to purchase 250,000 coffee
mugs to sell at its retail store. During the year, Haimes Company
recorded the following sales of coffee mugs:

         Month          Mugs solds        Selling price per mug
         June             16,000                  $2.00
         July             35,000                  $2.50
         August            2,000                  $3.00
         September        31,000                  $2.00
         October          46,000                  $3.00
         November         47,000                  $4.00
         December         40,000                  $3.50

Calculate the gross profit earned by Haimes Company for the months
August through November.

Exercise 2A-7

Crane Corporation incurred the following transactions.

Record the transactions. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Presented here is the income statement for Fairchild Co. for March: Sales $ 84,000 Cost of goods sold 40,500 Gross profit $ 43,500 Operating expenses 30,500 Operating income $ 13,000 Based on an analysis of cost behavior patterns, it has been determined that the company's contribution margin ratio is 34%.

Required: a. Rearrange the preceding income statement to the contribution margin format.

Calculate operating income if sales volume increases by 6%. (Do not round intermediate calculations.

Calculate the amount of revenue required for Fairchild to break-even

You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety helmets. Your boss has asked you to perform a comprehensive analysis of the company’s financial statements, including comparing Lydex’s performance to its major competitors. The company’s financial statements for the last two years are as follows: Lydex Company Comparative Balance Sheet This Year Last Year Assets Current assets: Cash $ 950,000 $ 1,110,000 Marketable securities 0 300,000 Accounts receivable, net 2,500,000 1,600,000 Inventory 3,550,000 2,000,000 Prepaid expenses 250,000 190,000 Total current assets 7,250,000 5,200,000 Plant and equipment, net 9,420,000 9,000,000 Total assets $ 16,670,000 $ 14,200,000 Liabilities and Stockholders' Equity Liabilities: Current liabilities $ 3,960,000 $ 2,880,000 Note payable, 10% 3,640,000 3,040,000 Total liabilities 7,600,000 5,920,000 Stockholders' equity: Common stock, $70 par value 7,000,000 7,000,000 Retained earnings 2,070,000 1,280,000 Total stockholders' equity 9,070,000 8,280,000 Total liabilities and stockholders' equity $ 16,670,000 $ 14,200,000 Lydex Company Comparative Income Statement and Reconciliation This Year Last Year Sales (all on account) $ 15,810,000 $ 13,080,000 Cost of goods sold 12,648,000 9,810,000 Gross margin 3,162,000 3,270,000 Selling and administrative expenses 1,183,714 1,584,000 Net operating income 1,978,286 1,686,000 Interest expense 364,000 304,000 Net income before taxes 1,614,286 1,382,000 Income taxes (30%) 484,286 414,600 Net income 1,130,000 967,400 Common dividends 340,000 483,700 Net income retained 790,000 483,700 Beginning retained earnings 1,280,000 796,300 Ending retained earnings $ 2,070,000 $ 1,280,000 To begin your assignment you gather the following financial data and ratios that are typical of companies in Lydex Company’s industry: Current ratio 2.3 Acid-test ratio 1.2 Average collection period 40 days Average sale period 60 days Return on assets 8.7 % Debt-to-equity ratio 0.66 Times interest earned ratio 5.7 Price-earnings ratio 10 Required: 1. Present the balance sheet in common-size format. 2. Present the income statement in common-size format down through net income.

resent the balance sheet in common-size format. (Round your answers to 1 decimal place. Due to rounding, figures may not fully reconcile down a column.)

resent the income statement in common-size format down through net income. (Round your answers to 1 decimal place. Due to rounding, figures may not fully reconcile down a column.)

calculate percent of total assets. Please show excel calculations.

The comparative balance sheets for 2018 and 2017 and the statement of income for 2018 are given below for Dux Company. Additional information from Dux's accounting records is provided also.

Additional information from the accounting records:

1. A building that originally cost $40,000, and which was three-fourths depreciated, was sold for $7,000.
2. The common stock of Byrd Corporation was purchased for $5,000 as a long-term investment.
3. Property was acquired by issuing a 13%, seven-year, $30,000 note payable to the seller.
4. New equipment was purchased for $15,000 cash.
5. On January 1, 2018, bonds were sold at their $25,000 face value.
6. On January 19, Dux issued a 5% stock dividend (1,000 shares). The market price of the $10 par value common stock was $14 per share at that time.
7. Cash dividends of $13,000 were paid to shareholders.
8. On November 12, 500 shares of common stock were repurchased as treasury stock at a cost of $8,000.

Required:
Prepare the statement of cash flows for Dux Company using the indirect method. (Do not round intermediate calculations. Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands. (i.e., 10,000 should be entered as 10).)