Widmer Watercraft’s predetermined overhead rate for the year 2017 is 200% of direct labor. Information on the company’s production activities during May 2017 follows. Purchased raw materials on credit, $220,000. Materials requisitions record use of the following materials for the month. Job 136 $49,000 Job 137 32,500 Job 138 20,000 Job 139 22,600 Job 140 6,600 Total direct materials 130,700 Indirect materials 20,500 Total materials used $151,200 Paid $15,250 cash to a computer consultant to reprogram factory equipment. Time tickets record use of the following labor for the month. These wages were paid in cash. Job 136 $12,300 Job 137 10,700 Job 138 37,900 Job 139 39,400 Job 140 3,200 Total direct labor 103,500 Indirect labor 24,000 Total $127,500 Applied overhead to Jobs 136, 138, and 139. Transferred Jobs 136, 138, and 139 to Finished Goods. Sold Jobs 136 and 138 on credit at a total price of $545,000. The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance). Depreciation of factory building $69,500 Depreciation of factory equipment 38,000 Expired factory insurance 10,000 Accrued property taxes payable 36,500 Applied overhead at month-end to the Work in Process Inventory account (Jobs 137 and 140) using the predetermined overhead rate of 200% of direct labor cost. rev: 02_01_2017_QC_CS-77139 Problem 19-3A Part 2 2. Prepare journal entries to record the events and transactions a through i.

Question 2

Access the most recent Form 10-K (year 2017) for both Exxon Mobil and Chevron and answer the following questions.

Required:

a. Determine whether each company’s foreign operations have a predominant functional currency. Discuss the implication this has for the comparability of financial statements between the two companies.

b. Determine the amount of translation adjustment, if any, reported in other comprehensive income in each of the three most recent years. Explain the sign (positive or negative) of the translation adjustment in each of the three most recent years. Compare the relative magnitude of the translation adjustments between the two companies.

The following information is for Sunland Auto Supplies:

The total dollar amount of assets to be classified as current assets is

$502000.

$138000.

$222000.

$360000.

Eaton Ross Puppet Company acquired a new plastic molding machine at the beginning of the current year at a cost of $ 450 comma 000. The asset has a 6​-year useful life for financial reporting purposes and is depreciated on a​ straight-line basis with no residual value expected at the end of its useful life. The company uses the​ double-declining balance method on its income tax returns. The company is subject to a 35​% tax rate. Compute the deferred tax portion of the income tax expense for the first 2 years. Complete the table below to compute the​ straight-line book depreciation and​ double-declining tax depreciation method through year 2 to determine the​ book-tax difference.​ (Round your calculations to the nearest​ dollar.)

1)During 2020, Kevin received the following items:

$5,000 unemployment compensation

$10,000 inheritance

$20,000 life insurance proceeds on account of mother’s death

How much is Kevin required to include in gross income?

2)

Len Landlord owns an apartment building. During the year he received:

Rent payments………………….$10,000

Security deposit………………...     2,500

Advance rent payment………….     5,000

How much must Len include in income?

The Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:

Each unit requires 0.25 direct labor-hours and direct laborers are paid $13.00 per hour.

In addition, the variable manufacturing overhead rate is $1.90 per direct labor-hour. The fixed manufacturing overhead is $88,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $28,000 per quarter.

Required:

1. Calculate the company’s total estimated direct labor cost for each quarter of the upcoming fiscal year and for the year as a whole.

2&3. Calculate the company’s total estimated manufacturing overhead cost and the cash disbursements for manufacturing overhead for each quarter of the upcoming fiscal year and for the year as a whole.

CVP with Activity-Based Costing and Multiple Products

Busy-Bee Baking Company produces a variety of breads. The plant manager would like to expand production into sweet rolls as well. The average price of a loaf of bread is $1. Anticipated price for a package of sweet rolls is $1.50. Costs for the new level of production are as follows:

Busy-Bee believes it can sell 600,000 loaves of bread and 200,000 packages of sweet rolls in the coming year.

Required:

1. Prepare a contribution-margin-based income statement for next year. Be sure to show sales and variable costs by product and in total.

Feedback

Remember a Contribution margin income statement calculates contribution-margin not gross profit.

2. Compute the break-even sales for the company as a whole using conventional analysis. Round your answer to the nearest dollar.
$

3. Compute the break-even sales for the company as a whole using activity-based analysis. Round your answer to the nearest dollar.
$

4. Compute the break-even units of each product in units. In your computations, round amounts to the nearest cent. Round your final answers to the nearest whole number of units.

Does it matter whether you use conventional analysis or activity-based analysis?
Yes

5. Suppose that Busy-Bee could reduce the setup cost by $100 per setup and could reduce the number of maintenance hours needed to 1,000. How many units of each product must be sold to break even in this case? Round your answer up to the next higher whole unit (for example, 50.3 units rounds to 51). In your computations, round amounts to three decimal places.

1. For each description/definition, select the appropriate completing the audit procedure.

   -       A.       B.       C.       D.       E.       F.       G.       H.       I.       J.       K.       L.    When auditors become aware of facts that existed at the date of the financial statements and auditor's reports, auditors should require the client to disclose the facts and their impact on the financial statements to persons relying on the financial statements.       -       A.       B.       C.       D.       E.       F.       G.       H.       I.       J.       K.       L.    A second audit partner in the firm performs this procedure to ensure engagement quality.       -       A.       B.       C.       D.       E.       F.       G.       H.       I.       J.       K.       L.    Settlement of litigation after the audit report date for an amount different than estimated in the financial statements is an example.       -       A.       B.       C.       D.       E.       F.       G.       H.       I.       J.       K.       L.    Responds directly to auditors' initial inquiries regarding litigation, claims, and assessments.       -       A.       B.       C.       D.       E.       F.       G.       H.       I.       J.       K.       L.    The auditor summarizes uncorrected misstatements found throughout the audit and asks the client to record some of these adjustments in this process.       -       A.       B.       C.       D.       E.       F.       G.       H.       I.       J.       K.       L.    Includes statements regarding auditors' judgment of the quality of the client's accounting principles.       -       A.       B.       C.       D.       E.       F.       G.       H.       I.       J.       K.       L.    A sale of bonds or capital stock is an example requiring the client to disclose the event.       -       A.       B.       C.       D.       E.       F.       G.       H.       I.       J.       K.       L.    Auditors bring the audit performed at an earlier date (before fiscal year end) up to date at fiscal year end.       -       A.       B.       C.       D.       E.       F.       G.       H.       I.       J.       K.       L.    A PCAOB inspection or the audit firm's quality review may identify the auditors did not follow GAAS due to failure to complete the audit plan.       -       A.       B.       C.       D.       E.       F.       G.       H.       I.       J.       K.       L.    Auditors consider evidence obtained during the audit to determine whether substantial doubt exists about the client's existence in the future.       -       A.       B.       C.       D.       E.       F.       G.       H.       I.       J.       K.       L.    Discusses the absence of fraud activity by the client and its personnel and is obtained on the date of the auditor's report.       -       A.       B.       C.       D.       E.       F.       G.       H.       I.       J.       K.       L.    Written by the auditor and accepted by the client prior to the engagement.       -       A.       B.       C.       D.       E.       F.       G.       H.       I.       J.       K.       L.    Occur following the date of the auditors' report and is one of only two items that can be either oral or written.       -       A.       B.       C.       D.       E.       F.       G.       H.       I.       J.       K.       L.    Can result in the auditor dual-dating the auditor's report.       -       A.       B.       C.       D.       E.       F.       G.       H.       I.       J.       K.       L.    The audit supervisor and audit manager complete this step as required by GAAS to ensure all appropriate steps in the audit plan were performed.

   A. Attorney letters B. Roll-forward work C. Management letter D. Representation letter E. Going concern assessment F. Proposed adjusting journal entries and uncorrected misstatements G. Communications with individuals charged with governance H. Subsequently discovered facts I. Subsequent events J. Omitted audit procedures K. Audit documentation review L. Engagement letter

Governments often receive interest on the temporary investment of capital debt proceeds. Some believe that governments are inconsistent in the way they report interest and other earnings on investments compared to interest on their debt. Explain this comment. Do you believe in reporting this incosistent?

David Corporation uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 20,000 units in its beginning work in process inventory that were 60% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $126,200. An additional 71,000 units were started into production during the month. There were 22,000 units in the ending work in process inventory of the Welding Department that were 10% complete with respect to conversion costs. A total of $398,250 in conversion costs were incurred in the department during the month. What would be the cost per equivalent unit for conversion costs for the month? (Round your final answer to 3 decimal places.)

1.$7.601

2.$7.387

3.$7.366

4.$5.593

Explain two type of equity instruments indicating their keys distinct features

Renault entered into 2 lease contracts. The first one was a 6-year lease for equipment with a €2,000 monthly lease payment at the beginning of each month. Renault took passion of the equipment on 1/1/2017. The market rate was 9.5%. The second lease contract was a 5 year lease, beginning on 1/1/2017 for retail shops with a semi-annual payments of €36,000 due at the end of the period. Assume the market rate of interest on such transactions is 6.5%. Assume the first lease is a capital lease and the second lease is an operating lease.

1. Determine the present value of the first contract.

N =                  I/Y =                           PV =                            PMT =                         FV =

2. Determine the present value of the. Second lease.

N =                  I/Y =                           PV =                            PMT =                         FV =   

3. Prepare the appropriate journal entry for the first lease on 1/1/2017.
4. Prepare the appropriate journal entry for the second lease on 7/1/2017

On 1 July 2018 Alto Ltd purchased land for $4 000 000, in cash. Alto Ltd uses the cost model to account for land.

On 1 July 2018 Alto Ltd purchased equipment for $1 000 000, in cash. Alto Ltd uses the revaluation model to account for equipment and depreciates the asset over its estimated useful life of 5 years using the straight-line method. The disposal value at the end of 5 years was assessed as zero.

The following information concerning asset measurement was available:

Indicators of impairment and/or reversal of impairment existed at relevant dates.

Prepare journal entries to account for Alto ’s land and equipment from 1 July 2018 to 30 June 2020. Journal entries must comply with AASB 116 ‘Property, Plant and Equipment’ and AASB 136 ‘Impairment of Assets’. Show all working and provide any explanations necessary to support your answer.