Iron Forge manufactures and sells a cast iron garden chair. The marketing department prepared the following quarterly sales forecast.

January 250 units

February 300 units

March 350 units

Total 900 units

The company tries to maintain 15% of the next month's forecasted sales in finished chairs inventory. January's beginning inventory to finished chair was 38 units. April and May sales are expected to be 400 chairs each month. Each chair requires 4 composite feet which are purchased from a vendor. The company tries to maintain 12% of the next month's forecasted production needs in feet inventory. January's beginning inventory for feet was 123.

Required:

A. Prepare a monthly production budgets for the first quarter. Include a total column.

B. Prepare a monthly materials purchases budget for chairs for the first quarter. Include a total column.

1. Steve’s Job Inc. works a lot of jobs and makes a lot of money. At the end of the previous month Steve had one job, job 10020, in process. For Job 10020 Steve had incurred $20,000 in labor, $50,000 in material and applied $10,000 in overhead. Steve tacks on a 50% profit margin to determine the amount charged to his customers. During the month Steve incurred another $40,000 in labor and another $30,000 in material plus the overhead. This job still hadn’t been completed by month end. Steve wondered what was taking so long. During the month Steve did a lot of things. One of the things he did was start and complete job # 1002 For job #10021 Steve spent $60,000 in labor, $40,000 in material and applied another $30,000 for overhead. Unfortunately, by month end the client had still not signed off on the work. Finally, Steve started and completed job # 10022. A very pretty job of which the client was more than satisfied. Steve spent $22,000 in labor, $44,000 in material and applied $11,000 in overhead. Actual overhead for the month was $53,000.

At month end what was the

1. WIP inventory balance
2. FG inventory balance
3. Unadjusted cost of goods sold
4. Adjusted cost of goods sold
5. Gross Margin, adjusted

Jaden Kyler is the Chief Operating Officer at United Hospital in Newark New Jersey. He is analyzing the​hospital's overhead costs but is not sure whether nursing hours or the number of patient days would be the best cost driver to use for predicting the​ hospital's overhead.

He has gathered the following information for the last six months of the most recent​ year:

Data Table:

Requirements:

1. Are the​ hospital's overhead costs​ fixed, variable, or​ mixed? Explain.

The​ hospital's overhead costs appear to be a ▼(fixed, mixed, variable cost). If it were a ▼ (fixed, mixed, variable ​cost), it would remain constant in total each month. If it were a ▼ (fixed, mixed, variable ​cost), it would remain constant on a per unit​ (of activity) basis. Both of the​ hospital's overhead cost per nursing hour and overhead cost per patient day ▼ (are fixed, vary) with volume.

2. Graph the​ hospital's overhead costs against nursing hours.

3. Graph the​ hospital's overhead costs against the number of patient days.

4. Do the data appear to be sound or do you see any potential data​ problems? Explain.

5. Use the​ high-low method to determine the​ hospital's cost equation using nursing hours as the cost driver. Predict total overhead costs if 24,500 nursing hours are predicted for the month.

6. Kyler runs a regression analysis using nursing hours as the cost driver to predict total hospital overhead costs. The Excel output from the regression analysis is as​ follows:

Regression analysis using nursing hours

SUMMARY OUTPUT​ - Nursing hours as cost driver

If 24,500 nursing hours are predicted for the​ month, what is the total predicted hospital​overhead?

7. Kyler then ran the regression analysis using number of patient days as the cost driver. The Excel output from the regression is shown​ here:

Regression analysis using number of patient days

SUMMARY OUTPUT​ - Using number of patient days as cost driver

If 3,650 patient days are predicted for the​ month, what is the total predicted hospital​overhead?

8. Which regression analysis​ (using nursing hours or using number of patient days as the cost​driver) produces the best cost​ equation? Explain your answer.

Mr Novak Murray is the sole owner of Roger & Rafa, a store that offers tennis racquet stringing service (that involves the use of strings and labour). The unadjusted trial balance of Roger & Raga as at 30 June 2018 is shown below. The annual reporting period for the business ends 30 June.

Additional information:

1. A cash payment of $540 for rent covering the period 1 May 2018 to 31 July 2018 was made on 30 April 2018 and debited to the Rent Expense account on the day.

2. One customer, Naomi Stosur, purchased a $250 service package by cash on 5 May 2018. Thepackage covers ten times of the use of the store’s stringing service. No service was used at purchase. This transaction was credited to service revenue on the day of purchase. Naomi had used the stringing service four times by the end of the reporting period.

3. The unpaid salaries earned by the store’s two sale assistants, Alex and Ashleigh, totaled $780as at 30 June 2018.
   Ignore depreciation. The use of string supplies in the period has been accounted for.

Required

(a) Prepare the journal entries required to correct recording errors (if any, leave blank if there are no errors).

(b) Prepare adjusting entries (after correction of errors, if any).
(c) Prepare the Adjusted Trial Balance for Roger & Rafa.
(For parts (a) & (b), provide your answers to the related item number, no narration required.)

Suction Inc., is a manufacturer of vacuums and uses standard costing. Manufacturing overhead​ (both variable and​ fixed) is allocated to products on the basis of budgeted​ machine-hours. In 2017​, budgeted fixed manufacturing overhead cost was 18,000,000. Budgeted variable manufacturing overhead was $12 per​machine-hour. The denominator level was 1,000,000 machine-hours

NFL Green Bay Packers play on Lambeau field in Wisconsin. The total cost of operations and maintenance for each year is $27 million and 6 home games are played per year. The cost to pay the players is $10,000,000 per year.

Each games operating cost is $2,833,333.33

Estimate the cost of running your stadium on game day. (Include the cost of utilities ($708,333.33), security ($708,333.33), maintenance on and off the field ($708,333.33), employees ($708.333.33), etc. Ignore concession and merchandise stands.

Also, assume the stadium is paid for meaning there is no outstanding debt.)

Estimate the average ticket price based on professional or school website research. ($35.54 per ticket). 81,441 tickets sold per game

Provide your reasoning/assumptions for your estimates (explain how you came up with the figures you include in your estimates).

Calculate the breakeven point in tickets using the unit breakeven formula from the textbook. Show your calculations in your posting.

Based on your breakeven calculation compare that breakeven tickets number to the stadium’s capacity. Is your breakeven point reasonable?

Measures of liquidity, Solvency and Profitability The comparative financial statements of Marshall Inc. are as follows. The market price of Marshall Inc. common stock was $ 62 on December 31, 20Y2. Marshall Inc. Comparative Retained Earnings Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Retained earnings, January 1 $ 3,069,350 $ 2,579,650 Net income 720,000 528,400 Total $ 3,789,350 $ 3,108,050 Dividends On preferred stock $ 9,100 $ 9,100 On common stock 29,600 29,600 Total dividends $ 38,700 $ 38,700 Retained earnings, December 31 $ 3,750,650 $ 3,069,350 Marshall Inc. Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $ 4,251,520 $ 3,917,180 Cost of goods sold 1,451,240 1,335,140 Gross profit $ 2,800,280 $ 2,582,040 Selling expenses $ 948,770 $ 1,179,930 Administrative expenses 808,220 692,970 Total operating expenses 1,756,990 1,872,900 Income from operations $ 1,043,290 $ 709,140 Other income 54,910 45,260 $ 1,098,200 $ 754,400 Other expense (interest) 280,000 154,400 Income before income tax $ 818,200 $ 600,000 Income tax expense 98,200 71,600 Net income $ 720,000 $ 528,400 Marshall Inc. Comparative Balance Sheet December 31, 20Y2 and 20Y1 Dec. 31, 20Y2 Dec. 31, 20Y1 Assets Current assets Cash $ 787,110 $ 699,480 Marketable securities 1,191,300 1,159,140 Accounts receivable (net) 781,100 737,300 Inventories 584,000 452,600 Prepaid expenses 148,904 139,900 Total current assets $ 3,492,414 $ 3,188,420 Long-term investments 2,074,821 808,205 Property, plant, and equipment (net) 4,200,000 3,780,000 Total assets $ 9,767,235 $ 7,776,625 Liabilities Current liabilities $ 1,126,585 $ 1,387,275 Long-term liabilities Mortgage note payable, 8 % $ 1,570,000 $ 0 Bonds payable, 8 % 1,930,000 1,930,000 Total long-term liabilities $ 3,500,000 $ 1,930,000 Total liabilities $ 4,626,585 $ 3,317,275 Stockholders' Equity Preferred $ 0.70 stock, $ 50 par $ 650,000 $ 650,000 Common stock, $ 10 par 740,000 740,000 Retained earnings 3,750,650 3,069,350 Total stockholders' equity $ 5,140,650 $ 4,459,350 Total liabilities and stockholders' equity $ 9,767,235 $ 7,776,625 Required: Determine the following measures for 20Y2, rounding to one decimal place, except for dollar amounts, which should be rounded to the nearest cent. Use the rounded answer of the requirement for subsequent requirement, if required. Assume 365 days a year. 1. Working capital $ 2,365,829 2. Current ratio 3.1 3. Quick ratio 2.4 4. Accounts receivable turnover 5. Number of days' sales in receivables days 6. Inventory turnover 7. Number of days' sales in inventory days 8. Ratio of fixed assets to long-term liabilities 1.2 9. Ratio of liabilities to stockholders' equity 10. Times interest earned 11. Asset turnover 0.6 12. Return on total assets % 13. Return on stockholders’ equity % 14. Return on common stockholders’ equity % 15. Earnings per share on common stock $ 16. Price-earnings ratio 17. Dividends per share of common stock $ 18. Dividend yield %

Do you think most tax credits benefit low- or high-income taxpayers? Why do you think this is?

Cooper and Ezzamel (2013) examine the role of management control systems, in particular the importance of designing effective performance measurement systems in a multinational context. Outline and discuss any four performance measurement systems that can be usefully developed and used by multinational corporations. (Minimum word limit 500 words).

[The following information applies to the questions displayed below.]

Pacific Ink had beginning work-in-process inventory of $802,560 on October 1. Of this amount, $335,200 was the cost of direct materials and $467,360 was the cost of conversion. The 59,000 units in the beginning inventory were 25 percent complete with respect to both direct materials and conversion costs.

During October, 124,000 units were transferred out and 41,000 remained in ending inventory. The units in ending inventory were 75 percent complete with respect to direct materials and 35 percent complete with respect to conversion costs. Costs incurred during the period amounted to $3,094,000 for direct materials and $3,893,400 for conversion.

Required:

a. Compute the equivalent units for the materials and conversion cost calculations.

b. Compute the cost per equivalent unit for direct materials and for conversion costs using the weighted-average method.

c. Compute the costs of goods transferred out and the ending inventory using the weighted-average method. (Round intermediate calculations to 2 decimal places.)

1. Smith Corporation is reviewing the following transactions for its year-ended December 31, 2015. Determine the proper balance sheet presentation and amounts for each item:

   Indicate the:

   1. Name of the account to use.
   2. Whether it is current or long-term, asset or liability.
   3. The amount.

   Show computations where necessary. If you could copy and paste each line item, and then give your answer, that would be superior.

   1. On December 15, 2015 the company declared a $2.50 per share dividend on 400,000 shares of common stock outstanding, to be paid on January 5, 2016.
   2. The amounts receivable account includes $50,000 due in three years from employees.
   3. At December 31, bonds payable of $200,000,000 are outstanding. The bonds pay 12% interest every September 30 and mature in installments of $50,000,000 every September 30.
   4. Included in long-term investments are 10-year U.S. Treasury bonds costing $500,000 that mature March 31, 2016. The bonds were purchased November 20, 2015.

Stock options prices are affected by a number of factors and arbitrage arguments are used to find the fair values of these options.

(1)    Explain the three reasons why the early exercise of an American call option on a non-dividend paying stock is never optimal.

(approx. 100 words)

Raymond opened the Muscles Fitness Gym in August. The Following transactions occurred during the first month of the business:

a) Raymond invested P100,000 in cash and 30,000 in gym equipment in the business.

b) Paid P10,000 for the first month’s rent.

c) Purchased supplies costing P4,000 on credit.

d) Purchased exercise equipment costing P25,000 for 15,000 cash and the rest on account.

e) Recorded income for the first half of the month of P6,500 in cash and P3,500 on account.

f) Paid P2,750 to a creditor on account.

g) Received payment from a customer on account for P1600.

h) Raymond withdrew P500 for a graduation gift.

i) Paid aerobics instructor her salary, P3,000.

j) Paid miscellaneous expense P1,500

k) Recorded income for the second half of the month of P5,600 in cash.

Prepare a new accounting equation every time a transaction occurs.

Kozlov Corporation has provided the following data from its activity-based costing system:

The company makes 440 units of product A21W a year, requiring a total of 820 machine-hours, 50 orders, and 20 inspection-hours per year. The product's direct materials cost is $35.32 per unit and its direct labor cost is $29.32 per unit. According to the activity-based costing system, the average cost of product A21W is closest to:

$97.38 per unit.

$68.14 per unit.

$64.64 per unit.

$95.76 per unit.

$52.25 per unit.