On February 1, 2021, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,480,000. During 2021, costs of $2,160,000 were incurred with estimated costs of $4,160,000 yet to be incurred. Billings of $2,660,000 were sent, and cash collected was $2,410,000.

In 2022, costs incurred were $2,660,000 with remaining costs estimated to be $3,840,000. 2022 billings were $2,910,000 and $2,635,000 cash was collected. The project was completed in 2023 after additional costs of $3,960,000 were incurred. The company’s fiscal year-end is December 31. Arrow recognizes revenue over time according to percentage of completion.

Required:
1. Compute the amount of revenue and gross profit or loss to be recognized in 2021, 2022, and 2023 using the percentage of completion method.
2a. Prepare journal entries for 2021 to record the transactions described (credit "various accounts" for construction costs incurred).
2b. Prepare journal entries for 2022 to record the transactions described (credit "various accounts" for construction costs incurred).
3a. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2021.
3b. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2022.

Barlow Company manufactures three products—A, B, and C. The selling price, variable costs, and contribution margin for one unit of each product follow:

The same raw material is used in all three products. Barlow Company has only 6,000 pounds of raw material on hand and will not be able to obtain any more of it for several weeks due to a strike in its supplier’s plant. Management is trying to decide which product(s) to concentrate on next week in filling its backlog of orders. The material costs $8 per pound.

Required:

1. Calculate the contribution margin per pound of the constraining resource for each product.

2. Assuming that Barlow has unlimited demand for each of its three products, what is the maximum contribution margin the company can earn when using the 6,000 pounds of raw material on hand?

3. Assuming that Barlow’s estimated customer demand is 500 units per product line, what is the maximum contribution margin the company can earn when using the 6,000 pounds of raw material on hand?

4. A foreign supplier could furnish Barlow with additional stocks of the raw material at a substantial premium over the usual price. Assuming Barlow’s estimated customer demand is 500 units per product line and that the company has used its 6,000 pounds of raw material in an optimal fashion, what is the highest price Barlow Company should be willing to pay for an additional pound of materials?

University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing). Management has decided to allocate maintenance costs on the basis of machine-hours in each department and personnel costs on the basis of labor-hours worked by the employees in each.

The following data appear in the company records for the current period:

Required:

Allocate the service department costs using the step method, starting with the Maintenance Department. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.)

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:

per annum

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).                                                                                      
   

Cost of Production Report: Average Cost Method Use the average cost method with the following data: Work in process, December 1, 5,500 units, 20% completed $40,040 Materials added during December from Weaving Department, 103,900 units 734,573 Direct labor for December 187,974 Factory overhead for December 143,141 Goods finished during December (includes goods in process, December 1), 101,700 units — Work in process, December 31, 7,700 units, 60% completed — Prepare a cost of production report for the Cutting Department of Tanner Carpet Company for December 2016 using the average cost method. If required, round your cost per equivalent unit answer to two decimal places. Tanner Carpet Company Cost of Production Report-Cutting Department For the Month Ended December 31, 2016

You have been asked by your boss to determine whether it is necessary to show earnings per share (EPS) on the financial statements when the company is not public and not governed by the Securities & Exchange Commission (SEC). What will you tell your boss? (US GAAP ISSUE) AN ASC NUMBER MUST BE USED AS A CITATION REFERENCE EACH GAAP ASSIGNMENT WILL HAVE THE FOLLOWING FORMAT: PROBLEM TO BE RESEARCHED: What is the question being asked? SOURCES FOR RESEARCH: (EX. FASB TEXT PAGE, GAAP GUIDE, ETC.) A CITATION MUST BE IDENTIFIED (i.e. U.S. GAAP (ASC) ACCOUNTING STANDARDS CODIFICATION TOPIC 111-11 FOR EXAMPLE) Where did you get you answer? III. CONCLUSION – What is your answer?

Sharp Company manufactures a product for which the following standards have been set: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 3 feet $ 5 per foot $ 15 Direct labor ? hours ? per hour ? During March, the company purchased direct materials at a cost of $52,740, all of which were used in the production of 2,750 units of product. In addition, 4,500 hours of direct labor time were worked on the product during the month. The cost of this labor time was $40,500. The following variances have been computed for the month: Materials quantity variance $ 2,700 U Labor spending variance $ 3,100 U Labor efficiency variance $ 850 U

Electronics, Inc., is a high-volume, wholesale merchandising company. Most of its inventory turns over four or five times a year. The company has had 50 units of a particular brand of computers on hand for over a year. These computers have not sold and probably will not sell unless they are discounted 60 to 70%. The accountant is carrying them on the books at cost and intends to recognize the loss when they are sold. This way, she can avoid a significant write-down in inventory on the current year’s financial statements. Question 1: Is the accountant correct in her treatment of the inventory? Why or why not? Question 2: Explain what is meant by conservatism and how it ties in with the lower-of-cost-or-market method of accounting for inventory. Question 3: What are some reasons why the inventories of electronic equipment might have to be written down.

The Pro Company had no beginning inventory.

Cost of production this month:

Material $1,000

Conversion $2,600

Total $3,600

Completed units this month: 300

Partially completed units in the ending inventory: 100

Required:

What is the cost of the completed units?

What is the cost of the ending inventory?

Assume now that the units in the ending inventory are 60% complete.

Task 1

COCO Co. is a manufacturing company. It manufactures 2 products, known as ‘A’ and ‘Z’. The following information is given for the year 2017: -

The standard direct materials and direct labour used for each product is as follows:

                             ‘A’                         ‘Z’

Material 1          10 units                8 units

Material 2         5 units                  9 units

Direct Labour   10 hours           15 hours

Standard direct materials and direct labour costs:

Material 1                8.20 per unit

Material 2               17.00 per unit

Direct Labour         14.00 per hour

Other important data is as follows for the year 2017:

                                                                     Direct material

                                                             Material 1          Material 2

Opening inventory (units)                   9,000               8,500

Closing inventory required (units)    10,000              2,000

           Finished product

                                                                                 ‘A’                         ‘Z’

Forecast sales (units)                                         8,500                   1,600

Selling price per unit                                          $ 500                  $ 660

Ending inventory required (units)                    2,000                  100

Beginning inventory (units)                                 200                      90

Required:

Prepare the following budgets for the year 2017: -

(a) Sales budget                      

(b) Production budget                              

(c) Direct materials usage budget                                           

(d) Direct materials purchase budget                             

(e) Direct labour budget                                   

Comparing Three Depreciation Methods Newbirth Coatings Company purchased waterproofing equipment on January 2, 2013, for $532,000. The equipment was expected to have a useful life of four years, or 8,000 operating hours, and a residual value of $44,000. The equipment was used for 3,000 hours during 2013, 2,500 hours in 2014, 1,400 hours in 2015, and 1,100 hours in 2016. Required: 1. Determine the amount of depreciation expense for the years ended December 31, 2013, 2014, 2015, and 2016, by (a) the straight-line method, (b) the units-of-output method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the four years by each method. Note: FOR DECLINING BALANCE ONLY, round the multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar. Depreciation Expense Year Straight-Line Method Units-of-Output Method Double-Declining-Balance Method 2013 $ $ $ 2014 $ $ $ 2015 $ $ $ 2016 $ $ $ Total $ $ $ 2. What method yields the highest depreciation expense for 2015? 3. What method yields the most depreciation over the four-year life of the equipment?

Please explain in full how to work this problem below.

I need a method to calculate this type of problems. Please help.

Stuart Company is considering investing in two new vans that are expected to generate combined cash inflows of $30,500 per year. The vans’ combined purchase price is $99,000. The expected life and salvage value of each are five years and $21,200, respectively. Stuart has an average cost of capital of 14 percent. (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.)

Required

1. Calculate the net present value of the investment opportunity. (Negative amount should be indicated by a minus sign. Round your intermediate calculations and final answer to 2 decimal places.)

2. Indicate whether the investment opportunity is expected to earn a return that is above or below the cost of capital and whether it should be accepted.

Describing

1.    Accounts receivable—

2.    Note receivable—

3.    Inventories—

4.    Investments—

5.   Prepaid expenses—

6.   Land—

7.   Equipment, net—

8.    Patent—

9.    Note payable—$

10. Interest payable—

11. Common stock—

Tamarisk Manufacturing has old equipment that cost $58,000. The equipment has accumulated depreciation of $27,200. Tamarisk has decided to sell the equipment. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) (a) What entry would Tamarisk make to record the sale of the equipment for $32,000 cash? (b) What entry would Tamarisk make to record the sale of the equipment for $15,000 cash?