Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Unit variable cost is $45 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $49,500 (includes fixed factory overhead and fixed selling and administrative expense).

a. sales are 20% for cash and 80% on account

b. sales on account are collected over a three month period with 10% collected in the month of sale: 70% in the first month following the sale, and the remaining 20% collected in the second month following the sale. Feb. sales were 200,000 and march was 300,000

c. Inventory purchases are paid within 15 days therefore, 50% of a month's inventory purchases are paid for in the month of purchase. The remaining 50% is paid in the following month. Accounts payable on March 31 for the month of March was 126,000

d. Each month's ending inventory must equal 20% of the cost of the merchandise to be sold in the following month. the merchandise inventory at march 31 was 84,000

e. dividends of 49,000 will be declared and paid in April

f. Land costing 16,000 will be purchased for cash in May

g. The cash balance at March 31 is 52,000 the company must maintain a cash balance of at least 40,000 at the end of each month.

h. the company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month, up to a total loan balance of 200,000. The interest rate on these loans is 1% each month and for simplicity we will assume that interest is not compounded. The company would, as far as it is able, repay the loan, plus accumulated interest at the end of each quarter.

1. Prepare a merchandise purchase budget for April, May and June.

2. Prepare a schedule of expected cash disbursements for merchandise purchases for April, May and June and for the quarter in total.

3. Prepare a cash budget for the month of May

On January 1, 2017, Skysong Company purchased 11% bonds, having a maturity value of $274,000, for $295,314.87. The bonds provide the bondholders with a 9% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest received on January 1 of each year. Skysong Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows.

Part #1: K Company is planning its cash disbursements for the upcoming months. In June, it anticipates $72,000 in Purchases, $130,000 in Payroll, and $40,000 in Loan Payments. In July, it anticipates $77,000 in Purchases, $140,000 in Payroll, and $35,000 in Loan Payments. In August, it anticipates $84,000 in Purchases, $150,000 in Payroll, and $30,000 in Loan Payments. Purchases are usually paid half in the current month and half in the following month. Payroll is paid 70 percent in the current month and 30 percent in the following month. Loan Payments are paid in the month due. Prepare a schedule of cash disbursements for the month of July only.

Part #2: Q Company anticipates production for its second quarter to be 18,000 units in April, 28,400 units in May, and 36,000 units in June. Each unit of finished product requires four pounds of raw materials. Q Company maintains raw materials inventories equal to 25 percent of the following month’s pounds needed for production. The April 1 inventories are in line with Q Company’s inventory policy. The anticipated cost per pound in April is $6 while the anticipated cost per pound in May is $6.25. Prepare a Direct Materials Purchases Budget with columns for April and May only.

Part #3: F Company’s Production Budget indicates that 13,000 units will be produced in April and 12,300 units in May. Workers are paid $19 per hour. It generally takes a worker 15 minutes (which is .25 hours) to make a unit. Prepare a Direct Labor Budget with columns for April and May only.

Port Ormond Carpet Company manufactures carpets. Fiber is placed in process in the Spinning Department, where it is spun into yarn. The output of the Spinning Department is transferred to the Tufting Department, where carpet backing is added at the beginning of the process and the process is completed. On January 1, Port Ormond Carpet Company had the following inventories:

Departmental accounts are maintained for factory overhead, and both have zero balances on January 1. Manufacturing operations for January are summarized as follows:

Required information

[The following information applies to the questions displayed below.]
  
Laker Company reported the following January purchases and sales data for its only product.
  

For specific identification, ending inventory consists of 360 units, where 320 are from the January 30 purchase, 5 are from the January 20 purchase, and 35 are from beginning inventory.

Required:

1. Prepare comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $1,950, and that the applicable income tax rate is 40%.

2. Which method yields the highest net income?

3. Does net income using weighted average fall above, between, or below that using FIFO and LIFO?

4. If costs were rising instead of falling, which method would yield the highest net income?

Complete this question by entering your answers in the tabs below.

• Required 1
• Required 2
• Required 3
• Required 4

Prepare comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $1,950, and that the applicable income tax rate is 40%. (Round your average cost per unit to 2 decimal places.)

The following selected accounts appear in the ledger of Parks Construction Inc. at the beginning of the current year:

During the year, the corporation completed a number of transactions affecting the stockholders' equity. They are summarized as follows:

1. Issued 60,000 shares of common stock at $28, receiving cash.
2. Issued 15,000 shares of preferred 2% stock at $120.
3. Purchased 36,000 shares of treasury common for $26 per share.
4. Sold 18,000 shares of treasury common for $29 per share.
5. Sold 12,000 shares of treasury common for $24 per share.
6. Declared cash dividends of $2.00 per share on preferred stock and $0.06 per share on common stock.
7. Paid the cash dividends.

Required:

Journalize the entries to record the transactions.

For a compound transaction, if an amount box does not require an entry, leave it blank.

a. Issued 60,000 shares of common stock at $28, receiving cash.

b. Issued 15,000 shares of preferred 2% stock at $120.

c. Purchased 36,000 shares of treasury common for $26 per share..

d. Sold 18,000 shares of treasury common for $29 per share.

e. Sold 12,000 shares of treasury common for $24 per share.

f. Declared cash dividends of $2 per share on preferred stock and $0.06 per share on common stock.

g. Paid the cash dividends.

Designer Frames makes bicycle frames in two processes, tubing and welding. The tubing process has a capacity of 125,000 units per year; welding has a capacity of 150,000 units per year. Cost information follows:

The company enjoys high demand for its products. Designer Frames can sell whatever output it can produce for the market price of $55 per frame. Designer Frames can start only 125,000 units into production in the tubing department because of capacity constraints on the tubing machines. The company scraps all defective units produced in the tubing department. Of the 125,000 units started in the tubing operation, 12,500 units (10 percent) are scrapped at the end of the production process. Scrap costs, based on total (fixed and variable) manufacturing costs incurred in the tubing operation, equal $34.00 per unit as follows:

The “$10 fixed cost” is the portion of the total fixed costs of $1,250,000 allocated to each unit, whether good or defective. The good units from the tubing department are sent to the welding department. Variable manufacturing costs in the welding department are $2.00 per unit. There is no scrap in the welding department. Therefore, Designer Frames’ total sales quantity equals the tubing department’s output. Designer Frames incurs no other variable costs. Designer Frames’ designers have discovered that using a different type of material in the tubing operation would reduce scrap to zero, but it would increase the variable costs per unit in the tubing department by $2.25. Recall that only 125,000 units can be started each year.

Required:

1. What is the additional direct materials cost of implementing the new method?

The additional direct material cost for implementing the new method would be $2.25 per unit and a total of $281,250.

b. What is the additional benefit to Designer Frames from using the new material and improving quality?

c. Should Designer Frames use the new materials?

d. Draft brief note to management describing other nonfinancial and qualitative factors should Designer Frames consider in making the decision?

Smoky Mountain Corporation makes two types of hiking boots—the Xtreme and the Pathfinder. Data concerning these two product lines appear below:

The company has a traditional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below:

Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system.

3. Prepare a quantitative comparison of the traditional and activity-based cost assignments.

1 A and B form the AB partnership. According to the agreement, A contributed $70,000 in cash while B contributed $80,000. Make the journal entry to form the partnership under the following assumptions:

a) The agreement was silent about allocating capital balances.

b) The agreement specified that capital balances will be allocated equally and the bonus method will be used.

c) The agreement specified that capital balances will be allocated equally and the goodwill method will be used.

2 Using the information from question #la above, the partners in the AB partnership agreed that profits and losses will be shared as follows • Salary: A $65,000 B $35,000 • Interest: Partners get 10% interest on beginning capital balance • Bonus: Partner A gets a bonus of 15% of net income generated • Remaining profit or loss shared equally Assume that after the first year of operation, the AB partnership generated: i) Net income $150,000 ii) Net income $70,000 iii) Net loss ($75,000)

a) For each of the income/ loss amounts above, determine the partners share of the income or loss

b) Prepare the end of year closing entries

c) Determine the ending capital balances for each partner

Machinery purchased for $41,200 by Swifty Corp. on January 1, 2015, was originally estimated to have an 8-year useful life with a residual value of $6,000. Depreciation has been entered for five years on this basis. In 2020, it is determined that the total estimated useful life (including 2020) should have been 10 years, with a residual value of $7,000 at the end of that time. Assume straight-line depreciation and that Swifty Corp. uses IFRS for financial statement purposes.

Prepare the entry that is required to correct the prior years’ depreciation, if any

Prepare the entry to record depreciation for 2020.

Repeat part (b) assuming Swifty Corp. uses ASPE and the machinery is originally estimated to have a physical life of 8.5 years and a salvage value of $0. In 2020, it is determined that the total estimated physical life (including 2020) should have been 11 years, with a salvage value of $400 at the end of that time.

Repeat part (b) assuming Swifty Corp. uses the double-declining-balance method of depreciation.

1.

Find the total amount due on the invoice. Round answer to the nearest cent.

2.  

Marisa Tallifero bought a cordless phone priced at $49.99. It was subject to 8.75% sales tax. Round answer to the nearest cent.

a. What was the sales tax?
$

b. What was the total amount Marisa paid for the phone?
$

3.

Find the total amount due on the invoice. Round answer to the nearest cent.

4.

Find the total amount due on the invoice. Round answer to the nearest cent. Place commas in the answer as needed.

5.

Find the total amount due on the invoice. Round answer to the nearest cent. Place commas in the answer as needed

6.

Find the total amount due on the invoice. Round answer to the nearest cent. Place commas in the answer as needed.

7.

Find the total amount due on the invoice. Round answer to the nearest cent. Place commas in the answer as needed.

8.

Find the total amount due on the invoice. Round answer to the nearest cent.

9.

Penny Holcomb purchased pen and pencil gift sets to give to her employees for the holidays. The total bill was $103.92, which included the sales tax of 6.5%. Round answer to the nearest cent.

a. What was the total cost of the pens?
$

b. What was the amount of the sales tax?
$

This assignment is the same for both Florida & non Florida students. This problem requires the student to develop a simple budget. At the end of the course, the student will receive a STAR for completing this assignment. This assignment must be completed in either MS Excel or in with a MS Word table*

Budget Case Problem

Meadow Lake Elementary will receive 600 additional students next fiscal year. This increase in student enrollment will raise the school over the number needed for several additional staff. You are only concerned with the budget for the additional students.

Your school will be allocated an additional:

Description    Salary Costs

Assistant Principal $ 53,000

Guidance Counselor $ 48,000

4 six-hour Teacher Aides $  9,600 each

Regular Classroom Teachers $ 48,000 each

One ESE Classroom Teacher $ 48,000 each

One Speech/Language Teacher  $ 48,000 each

One ESOL Teacher $ 48,000 each

One Custodian     $ 20,000

Secretary Clerk    $ 14,000

Data Processor,   $ 16,000

The regular education student-teacher formula is 20:1

The school will also receive:

A.  $ 4 per student for administrative supplies

B.  $16 per student for classroom supplies for regular teacher

C.  $ 5 per student for custodial supplies

D.  $ 300 per classroom teacher (ALL teachers except speech/language) for textbooks

E.  $ 200 per ESE teacher for ESE supplies

F.  $ 200 per ESOL Teacher for ESOL supplies

G.  A computer package for making class presentations for each regular, ESE, and ESOL teacher (not Speech) (package includes laptop computer with LCD projector) - cost per package is $3,500 per teacher.

H.  Substitute budget for $ 5,000

Outline and total the school's additional budget resources based on the increased enrollment. Use State of Florida Function and Objectcodes (Redbook codes), and group the budgeted items by common function.

Use the following headers: (an Excel spreadsheet is available to assist with this assignment)

  FUNCTION  OBJECT     DESCRIPTION     EMP. CT.  SALARY  NON-SALARY

Using the following employee benefit costs, determine the TOTAL employee costs for the enrollment increase (Salary + Benefits)

  Variable Benefits  Fixed Benefits

  Retirement   10.40%     Health $ 7,500

  FICA     7.65%   Life $   125

  Work Comp    1.50%

  Total   19.55%      $ 7,625

1. What are the Function & Object codes for each of the personnel items?  – (4 points, ½ point for each incorrect Function or Object code).

2. What are the Employee Counts for each Function group? (2 points, ½ point for each incorrect employee count)

3. What are the total non-Salary Costs, by Function and Object, for the non-salary items for these additional 600 students? (3 points, ½ points for each incorrect Function, Object, or total cost)

4. What are the total variable and fixed employee benefit costs? (1 point, ½ point each)

The Comet Company's budget contains these standards for materials and direct labor for a unit: Material 5 lbs. @ $1 per lb. = $5

Labor 2 hrs. @ $5 per hr. = $10

Although 2,500 units were budgeted, 3,000 were actually produced. Materials weighing 16,000 lbs. were purchased for $18,400. Materials weighing 15,500 lbs. were issued to production. Direct Labor costs were $33,075 for 6,750 hrs.

A.) What's the materials price variance?

B.) What's the materials quantity variance?

C.) What's the total material variance?

D.) What's the labor rate variance?

E.) What's the labor efficiency variance?

F.) What was the total labor variance?

Thanks! :)