Hickory Company manufactures two products—13,000 units of Product Y and 5,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all $630,000 of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z:

Foundational 7-5

5. What is the activity rate for the Product Design activity cost pool?

6. What is the activity rate for the General Factory activity cost pool? (Round your answer to 2 decimal places.)

7. Which of the four activities is a batch-level activity?

Machine setups activity

Machining activity

Product design activity

General factory activity

8. Which of the four activities is a product-level activity?

General factory activity

Product design activity

Machine setups activity

Machining activity

9. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? (Round all intermediate calculations to 2 decimal places.)

10. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z?

11. Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z? (Round your "Percentage" answers to 2 decimal place.)

12. Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z? (Round your "Percentage" answers to 2 decimal places.)

13. Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z? (Round your "Percentage" answers to 2 decimal places.)

14. Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Product Z?

15. Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z? (Round your

The Geneva Company manufactures the famous Ticktock watch on an assembly-line basis. January 1 work-in-process consisted of 5,000 units partially completed. During the month, an additional 110,000 units were started, and 105,000 units were completed. The ending work-in-process was 60% complete as to conversion costs. Conversion costs are added evenly throughout the process. The following conversion costs were incurred: Beginning costs for work-in-process $1,500 Total current conversion costs $273,920 The conversion costs assigned to ending work-in-process totaled $15,360 using the FIFO method of process costing.

Required information [The following information applies to the questions displayed below.] Washington County’s Board of Representatives is considering the construction of a longer runway at the county airport. Currently, the airport can handle only private aircraft and small commuter jets. A new, long runway would enable the airport to handle the midsize jets used on many domestic flights. Data pertinent to the board’s decision appear below. Cost of acquiring additional land for runway $ 82,500 Cost of runway construction 280,000 Cost of extending perimeter fence 19,908 Cost of runway lights 45,000 Annual cost of maintaining new runway 22,500 Annual incremental revenue from landing fees 57,500 In addition to the preceding data, two other facts are relevant to the decision. First, a longer runway will require a new snowplow, which will cost $180,000. The old snowplow could be sold now for $18,000. The new, larger plow will cost $16,000 more in annual operating costs. Second, the County Board of Representatives believes that the proposed long runway, and the major jet service it will bring to the county, will increase economic activity in the community. The board projects that the increased economic activity will result in $94,000 per year in additional tax revenue for the county. In analyzing the runway proposal, the board has decided to use a 10-year time horizon. The county’s hurdle rate for capital projects is 18 percent. Use Appendix A for your reference. (Use appropriate factor(s) from the tables provided.) In analyzing the runway proposal, the board has decided to use a 10-year time horizon. The county’s hurdle rate for capital projects is 18 percent. The County Board of Representatives believes that if the county conducts a promotional effort costing $28,000 per year, the proposed long runway will result in substantially greater economic development than was projected originally. However, the board is uncertain about the actual increase in county tax revenue that will result. Required: Suppose the board builds the long runway and conducts the promotional campaign. What would the increase in the county’s annual tax revenue need to be in order for the proposed runway’s internal rate of return to equal the county’s hurdle rate of 18 percent? (Round intermediate and final answer to the nearest dollar amount.)

Problem 6-2A (Part Level Submission)

Dunbar Distribution markets CDs of numerous performing artists. At the beginning of March, Dunbar had in beginning inventory 3,613 CDs with a unit cost of $10. During March, Dunbar made the following purchases of CDs.

March 5 2,890 @ $12

March 13 5,058 @ $13

March 21 7,225 @ $14

March 26 2,890 @ $16

During March 17,340 units were sold. Dunbar uses a periodic inventory system.

Costs of goods available for sale $283, 954

Average cost $ 13.099

QUESTION:

Determine (1) the ending inventory and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). (Round answerS to 0 decimal places, e.g. 125.)

The ending inventory FIFO LIFO AVERAGE-COST

$? $? $?

The cost of goods sold FIFO LIFO AVERAGE-COST

$? $? $?

Comprehensive Variance Problem
The standard cost sheet for Chambers Company, which manufactures one product, follows:
Direct materials, 40 yards at $2.00 per yard . . . . . . . . . . . . . . . $ 80
Direct labor, 5 hours at $20 per hour. . . . . . . . . . . . . . . . . . . . . 100
Factory overhead applied at 80% of direct labor
(variable costs = $60; fixed costs = $20). . . . . . . . . . . . . . . . . . 80
Variable selling and administrative . . . . . . . . . . . . . . . . . . . . . . 64
Fixed selling and administrative . . . . . . . . . . . . . . . . . . . . . . . .   40
Total unit costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $364
Standards have been computed based on a master budget activity level of 28,800 direct labor-
hours per month. Actual activity for the past month was as follows:
Materials used. . . . . . . . . . . . . . 228,000 yards at $2.05 per yard
Direct labor . . . . . . . . . . . . . . . . 25,200 hours at $20.40 per hour
Total factory overhead. . . . . . . . $444,000
Production . . . . . . . . . . . . . . . . . 5,000 units
Required
Prepare variance analyses for the variable and fixed costs. Indicate which variances cannot be
computed. Materials are purchased as they are used

The management and discussion and analysis (MD&A) section of the annual report provides valuable information on an entity's revenue and expenses. The information contained therein, helps deriving various ratio analyses.

What information do you find in the MD & A that is important in assessing the earnings and earnings potential of a selected company and why?

Determine what the initial basis of an asset would be in the following situations:

1. purchase of asset

2. Bargain Purchase

3. Lump-sum purchase

4. Property acquired by gift

5. Property acquired from a decedent

6. Property converted from personal use to business or income-producing use

Complete the table using the figures provided for the three products: A, B and C.

Last month’s budget for sales

Last month’s sales (actuals)

Statement of Cash Flows—A method of reporting the cash flows from operating activities as the net income from operations adjusted for all deferrals of past cash receipts and payments and all accruals of expected future cash receipts and payments.Indirect Method

The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows:

Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows:

1. Equipment and land were acquired for cash.
2. There were no disposals of equipment during the year.
3. The investments were sold for $98,420 cash.
4. The common stock was issued for cash.
5. There was a $72,060 credit to Retained Earnings for net income.
6. There was a $43,930 debit to Retained Earnings for cash dividends declared.

Required:

Prepare a statement of cash flows, using the indirect method of presenting The section of the statement of cash flows that reports the cash transactions affecting the determination of net income.cash flows from operating activities. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.

The Polaris Company uses a job-order costing system. The following transactions occurred in October:

1. Raw materials purchased on account, $210,000.
2. Raw materials used in production, $192,000 ($153,600 direct materials and $38,400 indirect materials).
3. Accrued direct labor cost of $48,000 and indirect labor cost of $22,000.
4. Depreciation recorded on factory equipment, $106,000.
5. Other manufacturing overhead costs accrued during October, $129,000.
6. The company applies manufacturing overhead cost to production using a predetermined rate of $10 per machine-hour. A total of 76,200 machine-hours were used in October.
7. Jobs costing $514,000 according to their job cost sheets were completed during October and transferred to Finished Goods.
8. Jobs that had cost $451,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 36% above cost.

Required:

1. Prepare journal entries to record the transactions given above.

2. Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account. Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $33,000.

Suppose Vince dies this year with a gross estate of $25 million and no adjusted prior gifts. Assume the estate qualifies for the martial deduction.

Calculate the amount of estate tax due (if any) under the following alternative conditions for 2018. (Refer to Exhibit 25-1 and Exhibit 25-2.)

Exhibit 25-2 The Exemption Equivalent

Year of Transfer                Gift Tax                 Estate Tax           

2018                                       11,180,000           11,180,000

Required:

1. Vince leaves his entire estate to his spouse, Millie.
2. Vince leaves $10 million to Millie and the remainder to charity.
3. Vince leaves $10 million to Millie and the remainder to his son, Paul.
4. Vince leaves $10 million to Millie and the remainder to a trust whose trustee is required to pay income to Millie for her life and the remainder to Paul(

For all requirements, enter your answer in millions rounded to 3 decimal places. Leave no answer blank. Enter zero if applicable.)

A. Amount of estate tax  

B. Amount of estate tax  

C. Amount of estate tax  

D. Amount of estate tax  

Problem 15-15 A real estate investor has the opportunity to purchase land currently zoned as residential. If the county board approves a request to rezone the property as commercial within the next year, the investor will be able to lease the land to a large discount firm that wants to open a new store on the property. However, if the zoning change is not approved, the investor will have to sell the property at a loss. Profits (in thousands of dollars) are shown in the following payoff table: State of Nature Rezoning Approved Rezoning Not Approved Decision Alternative s1 s2 Purchase, d1 550 -250 Do not purchase, d2 0 0 (a) If the probability that the rezoning will be approved is 0.5, what decision is recommended? Recommended Decision: What is the expected profit? $ (b) The investor can purchase an option to buy the land. Under the option, the investor maintains the rights to purchase the land anytime during the next three months while learning more about possible resistance to the rezoning proposal from area residents. Probabilities are as follows: Let H = High resistance to rezoning L = Low resistance to rezoning P(H) = 0.55 P(s1 | H) = 0.16 P(s2 | H) = 0.84 P(L) = 0.45 P(s1 | L) = 0.85 P(s2 | L) = 0.15 What is the optimal decision strategy if the investor uses the option period to learn more about the resistance from area residents before making the purchase decision? High resistance: Low resistance: (c) If the option will cost the investor an additional $10,000, should the investor purchase the option? Why or why not? The input in the box below will not be graded, but may be reviewed and considered by your instructor. blank What is the maximum that the investor should be willing to pay for the option? EVSI = $

please dont copy from internet. thank you

Assignment # 12

Q 1:

Prepare journal entries to record the following merchandising transactions of Blink Company, which applies the perpetual inventory system. (Hint: It will help to identify each receivable and payable; for example, record the purchase on July 1 in Accounts Payable—Boden.)

July 1 Purchased merchandise from Boden Company for $6,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1.

2 Sold merchandise to Creek Co. for $900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $500.

3 Paid $125 cash for freight charges on the purchase of July 1.

8 Sold merchandise that had cost $1,300 for $1,700 cash.

9 Purchased merchandise from Leight Co. for $2,200 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9.

11 Received a $200 credit memorandum from Leight Co. for the return of part of the merchandise purchased on July 9.

12 Received the balance due from Creek Co. for the invoice dated July 2, net of the discount.

16 Paid the balance due to Boden Company within the discount period.

19 Sold merchandise that cost $800 to Art Co. for $1,200 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19.

21 Issued a $200 credit memorandum to Art Co. for an allowance on goods sold on July 19.

24 Paid Leight Co. the balance due after deducting the discount.

30 Received the balance due from Art Co. for the invoice dated July 19, net of discount.

31 Sold merchandise that cost $4,800 to Creek Co. for $7,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31.

Q2:

Prepare journal entries to record the following merchandising transactions of Sheng Company, which applies the perpetual inventory system. (Hint: It will help to identify each receivable and payable; for example, record the purchase on August 1 in Accounts Payable—Arotek.) Also make Single and Multistep Income Statement.

Aug. 1 Purchased merchandise from Arotek Company for $7,500 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1.

5 Sold merchandise to Laird Corp. for $5,200 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. The merchandise had cost $4,000.

8 Purchased merchandise from Waters Corporation for $5,400 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8. The invoice showed that at Sheng’s request, Waters paid the $140 shipping charges and added that amount to the bill. (Hint: Discounts are not applied to freight and shipping charges.)

9 Paid $125 cash for shipping charges related to the August 5 sale to Laird Corp.

10 Laird returned merchandise from the August 5 sale that had cost Sheng $400 and been sold for $600. The merchandise was restored to inventory.

12 After negotiations with Waters Corporation concerning problems with the merchandise purchased on August 8, Sheng received a credit memorandum from Waters granting a price reduction of $700.

14 At Arotek’s request, Sheng paid $200 cash for freight charges on the August 1 purchase, reducing the amount owed to Arotek.

15 Received balance due from Laird Corp. for the August 5 sale less the return on August 10.

18 Paid the amount due Waters Corporation for the August 8 purchase less the price reduction granted.

19 Sold merchandise to Tux Co. for $4,800 under credit terms of 1/10, n/30, FOB shipping point, invoice dated August 19. The merchandise had cost $2,400.

22 Tux requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Sheng sent Tux a $500 credit memorandum to resolve the issue.

29 Received Tux’s cash payment for the amount due from the August 19 sale.

30 Paid Arotek Company the amount due from the August 1 purchase.

Q3:

Prepare journal entries to record the following merchandising transactions of Mason Company, which applies the perpetual inventory system. (Hint: It will help to identify each receivable and payable; for example, record the purchase on July 3 in Accounts Payable—OLB.) Also make Single and Multistep Income Statement.

July 3 Purchased merchandise from OLB Corp. for $15,000 under credit terms of 1/10, n/30, FOB destination, invoice dated July 3.

7 Sold merchandise to Brill Co. for $11,500 under credit terms of 2/10, n/60, FOB destination, invoice dated July 7. The merchandise had cost $7,750.

10 Purchased merchandise from Rupert Corporation for $14,200 under credit terms of 1/10, n/45, FOB shipping point, invoice dated July 10. The invoice showed that at Mason’s request, Rupert paid the $500 shipping charges and added that amount to the bill. (Hint: Discounts are not applied to freight and shipping charges.)

11 Paid $300 cash for shipping charges related to the July 7 sale to Brill Co.

12 Brill returned merchandise from the July 7 sale that had cost Mason $1,450 and been sold for $1,850. The merchandise was restored to inventory.

14 After negotiations with Rupert Corporation concerning problems with the merchandise purchased on July 10, Mason received a credit memorandum from Rupert granting a price reduction of $2,000.

15 At OLB’s request, Mason paid $150 cash for freight charges on the July 3 purchase, reducing the amount owed to OLB.

17 Received balance due from Brill Co. for the July 7 sale less the return on July 12.

20 Paid the amount due Rupert Corporation for the July 10 purchase less the price reduction granted.

21 Sold merchandise to Brown for $11,000 under credit terms of 1/10, n/30, FOB shipping point,

invoice dated July 21. The merchandise had cost $7,000.

24 Brown requested a price reduction on the July 21 sale because the merchandise did not meet specifications. Mason sent Brown a credit memorandum for $1,300 to resolve the issue.

30 Received Brown’s cash payment for the amount due from the July 21 sale.

31 Paid OLB Corp. the amount due from the July 3 purchase.

Q 4:

Church Company completes these transactions and events during March of the current year (terms for all its credit sales are 2/10, n/30).

Mar. 1 Purchased $43,600 of merchandise from Van Industries, invoice dated March 1, terms 2/15, n/30.

2. Sold merchandise on credit to Min Cho, Invoice No. 854, for $16,800 (cost is $8,400).
3. Purchased $1,230 of office supplies on credit from Gabel Company, invoice dated March 3, terms n/10 EOM.
4. Sold merchandise on credit to Linda Witt, Invoice No. 855, for $10,200 (cost is $5,800).
5. Borrowed $82,000 cash from Federal Bank by signing a long-term note payable.
6. Purchased $21,850 of office equipment on credit from Spell Supply, invoice dated March 9, terms ny10 EOM.
7. Sold merchandise on credit to Jovita Albany, Invoice No. 856, for $5,600 (cost is $2,900).
8. Received payment from Min Cho for the March 2 sale less the discount.
9. Sent Van Industries Check No. 416 in payment of the March 1 invoice less the discount.
10. Received payment from Linda Witt for the March 3 sale less the discount.
11. Purchased $32,625 of merchandise from the CD Company, invoice dated March 13, terms 2/10, n/30.
12. Issued Check No. 417, payable to Payroll, in payment of sales salaries expense for the first half of the month, $18,300. Cashed the check and paid the employees.
13. Cash sales for the first half of the month are $34,680 (cost is $20,210). (Cash sales are recorded daily but are recorded only twice here to reduce repetitive entries.)
14. Purchased $1,770 of store supplies on credit from Gabel Company, invoice dated March 16, terms ny10 EOM.
15. Received a $2,425 credit memorandum from CD Company for the return of unsatisfactory merchandise purchased on March 14.
16. Received a $630 credit memorandum from Spell Supply for office equipment received on March 9 and returned for credit.
17. Received payment from Jovita Albany for the sale of March 10 less the discount.
18. Issued Check No. 418 to CD Company in payment of the invoice of March 13 less the March 17 return and the discount.
19. Sold merchandise on credit to Jovita Albany, Invoice No. 857, for $14,910 (cost is $7,220).
20. Sold merchandise on credit to Linda Witt, Invoice No. 858, for $4,315 (cost is $3,280).
21. Issued Check No. 419, payable to Payroll, in payment of sales salaries expense for the last half of the month, $18,300. Cashed the check and paid the employees.
22. Cash sales for the last half of the month are $30,180 (cost is $16,820).
23. Verify that amounts impacting customer and creditor accounts were posted and that any amounts that should have been posted as individual amounts to the general ledger accounts were posted. Foot and cross foot the journals and make the month-end postings.

Required:

1. Enter these transactions in a sales journal, a purchases journal, a cash receipts journal, a cash disbursements journal, or a general journal.

On October 29, 2016, Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual inventory method. The razors have a 90-day warranty that requires the company to replace any nonworking razor. When a razor is returned, the company discards it and mails a new one from Merchandise Inventory to the customer. The company's cost per new razor is $13 and its retail selling price is $80 in both 2016 and 2017. The manufacturer has advised the company to expect warranty costs to equal 6% of dollar sales. The following transactions and events occurred.

2016

2017

2. How much warranty expense is reported for November 2016 and for December 2016?