Anna Wright is considering opening a Kwik Oil Change Center. She estimates the following monthly costs: rent $6,000; depreciation on equipment $7,000; and wages $16,400. Additionally, each oil change will include five quarts of oil at $1.80 per quart and one oil filter that will cost $3.00. She must also pay The Kwik Corporation a franchise fee of $1.40 per oil change. In addition, she has collected the following data from the company regarding utility costs. The total utility cost is based on the number of monthly oil changes.

What is the variable cost per oil change?

A condensed income statement for the Electronics Division of Gihbli Industries Inc. for the year ended December 31, 20Y9, is as follows:

Assume that the Electronics Division received no charges from service departments.

The president of Gihbli Industries Inc. has indicated that the division’s return on a $2,900,000 investment must be increased to at least 22.5% by the end of the next year if operations are to continue. The division manager is considering the following three proposals:

Proposal 1: Transfer equipment with a book value of $580,000 to other divisions at no gain or loss and lease similar equipment. The annual lease payments would be less than the amount of depreciation expense on the old equipment by $104,400. This decrease in expense would be included as part of the cost of goods sold. Sales would remain unchanged.

Proposal 2: Reduce invested assets by discontinuing a product line. This action would eliminate sales of $616,300, reduce cost of goods sold by $411,800, and reduce operating expenses by $181,300. Assets of $1,468,300 would be transferred to other divisions at no gain or loss.

Proposal 3: Purchase new and more efficient machinery and thereby reduce the cost of goods sold by $382,800 after considering the effects of depreciation expense on the new equipment. Sales would remain unchanged, and the old machinery, which has no remaining book value, would be scrapped at no gain or loss. The new machinery would increase invested assets by $1,450,000 for the year.

Required:

1. Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and rate of return on investment for the Electronics Division for the past year. Round your answers to one decimal place.

2. Prepare condensed estimated income statements and compute the invested assets for each proposal.

3. Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment for each proposal. Round your answers to one decimal place.

4. Which of the three proposals would meet the required 22.5% return on investment.

5. If the Electronics Division were in an industry where the profit margin could not be increased, how much would the investment turnover have to increase to meet the president's required 22.5% rate of return on investment? Enter your increase in investment turnover answer as a percentage of current investment turnover. If required, round your answer to one decimal place.
%

21. Assume an entity measures the fair value of an asset by discounting future cash flows from that asset. Which fair value measurement approach is being used?
a. Market.
b. Income.
c. Cost.
d. Observable inputs.

22. In determining the fair value of a nonfinancial asset, assessing the highest and best use of the asset must consider all but which one of the following?
a. What is physically possible.
b. What is financially feasible.
c. How the reporting entity would use the asset.
d. What is legally permissible.

**Please provide computations and explanations. Thank you!!

Most companies using process costing systems have to calculate more than one EUP. Why? How many do they have to calculate?

Journalize the entries for the following transactions. Refer to the Chart of Accounts for exact wording of account titles. (Note: The company uses a clearinghouse to take care of all bank as well as non-bank credit cards used by its customers. )

CHART OF ACCOUNTSGeneral Ledger

Journalize the entries for the transactions on December 31. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 10

JOURNAL

ACCOUNTING EQUATION

YOUR Firm, Inc. expects to sell 200,000 units next year, generating total sales of

$ 17,000,000. Management predicts that profit will be $ 1,250,000 and the contribution margin will be $ 25 per unit.

1. What is the total expected variable costs?
2. What is next year’s expected fixed costs?
3. Compute the expected margin of safety in both units and sales dollars?

Grandma decides to put 1200 dollars every month into an account for you. She makes 16 monthly deposits, the last coming September 1, 2019 - the day you start college. She wants you to be able to withdraw money from this account at the beginning of each month, with the first withdrawal coming September 1, 2019 and the last coming June 1, 2024, (when you'll graduate). (Note: that makes 58 withdrawals total.) How much will you be able to withdraw each month if the account is earning a nominal interest rate of 7.5 percent convertible monthly?

During 2019, Brent Industries, Inc. constructed a new manufacturing facility at a cost of $12,000,000. The weighted average accumulated expenditures for 2019 were calculated to be $5,750,000. The company had the following debt outstanding at December 31, 2019:

(a) 7 percent, five-year note to finance construction of the manufacturing facility, dated January 1, 2019, $4,000,000.

(b) 9 percent, 20-year bonds issued at par on April 30, 2015, $8,400,000.

(c) 7 percent, six-year note payable, dated March 1, 2017, $1,800,000.

Required:

1. Determine the amount of interest that should be capitalized in 2019 assuming that the facility is completed at the end of 2019. DON'T NEED

2. Show the most likely journal entry to record the capitalized interest assuming that Brent recorded all interest as expense when paid or accrued. DON'T NEED

3. Give the journal entry to record depreciation on the facility in 2020 assuming a 25 year useful life and no salvage value.

4. Give the journal entry to sell the manufacturing facility at the end of 2030 for $7 million in cash.

I have the answers to 1&2 - I just need 3&4 please. Thanks!

The following information concerns production in the Baking Department for March. All direct materials are placed in process at the beginning of production.

a. Based on the above data, determine each cost listed below. Round "cost per equivalent unit" answers to the nearest cent.

b. Assuming that the direct materials cost is the same for February and March, did the conversion cost per equivalent unit increase, decrease, or remain the same in March?
Increase

The company issues 4.4% 10-year bonds with a total face amount of $1,000,000 with interest paid semi-annually. The market rate of interest is 4.5%.

ROUND ANSWERS TO NEARST DOLLAR

What is the issue price of the bond? $_______

What is the interest expense for the first interest payment? $_____

What is the bond liability after the first interest payment? $_______

West Texas Chemical Company manufactures a product called Kylon, which requires three raw materials. Production is in batches of 1,000 gallons of finished product. The firm uses standard costs as a control device. Its standard costs for materials for each batch of Kylon have been established as follows:

The output is packaged in 50-gallon drums. During the month of June 2019, 200 drums of Kylon were produced. There was no beginning or ending inventory of work in process. The materials actually used during June are listed below:

Compute the total variance between the actual cost of the materials used during June and the standard cost of the materials. Also compute the total variance for each type of material. (Indicate the effect of each variance by selecting Favorable, Unfavorable, and "None" for no effect (i.e., zero variance).)

Analyze the variances for each type of material for the month. (Indicate the effect of each variance by selecting Favorable, Unfavorable, and "None" for no effect (i.e., zero variance).)

Kurtz Fencing Inc. uses a job order cost system. The following data summarize the operations related to production for March, the first month of operations:

1-How is the term "market value" used in real estate valuation?

2-. How is the term "investment value" used in real estate valuation?

3-How are transaction prices used in real estate valuation?

4- List the eight steps of the valuation process used in conformity with Uniform Standards of Professional Appriasal Practice.

5- Explain the importance of arm's-length transactions when selecting comparable sales data , give examples that do not qualify as such.

NOTE: please write the answer in short

Segak Koleksi Company is a manufacturer of high quality work uniforms. The price of a uniform is RM150. The following are the costs involved in April with the production unit of 500 uniforms:

a)   Calculated:

1. 1. Prime Cost – monthly
   2. Overhed Cost – monthly
   3. Period Cost – monthly
   4. Cost product per unit
2. One of items above is sunk cost. Define sunk cost and identify the items above.

Explain the difference between capital assets, capital investments, and capital budgeting.