Cade Industries operates a fleet of delivery vehicles that make scheduled pickups and deliveries for its customers in the Boulder area. The company is implementing an activity based costing system that has four activity cost pools: Travel, Pickup and Delivery, Customer Service and Other. The activity measures are as follows for each of the cost pools: Travel – Miles; Pickups and Deliveries - # of Pickups and Deliveries; Customer Service - # of Customers. The Other cost pool has no activity measure because it is an organization-sustaining activity. The following costs will be assigned using the activity based costing system:

The distribution of resource consumption across the activity cost pools is as follows:

1. If the company had the following activity, complete the Second Stage Allocations. Calculate to the nearest tenth of a penny.
   1. Miles Driven – 1,000,000
   2. Pickups and Deliveries – 5,000
   3. Number of Customers – 1,500
2. During 2018, Cade completed a number of deliveries for one of it’s customer’s Tank 7 Industries. Cade calculates revenues based on the miles driven. During the year, Cade drove 25,000 miles on 30 deliveries for Tank 7 Industries. Cade charges a premium on any deliver that is 250 miles or less of $100/delivery. Six of Tank 7’s deliveries were subject to this $100 surcharge. Cade charges Tank 7 $1.75/mile driven (plus any surcharges). Determine the profitability of Tank 7 Industries in 2018 for Cade.
3. Just do question 2. Please show all work

Weihong Corporation is about to emerge from a Chapter 11 reorganization. Assets of the emerging entity have a total book value of $3,000,000. Of these, assets with a book value of $600,000 are not needed to operate the emerging entity and will be sold for an expected price of $460,000. The remaining assets will be used in operations. Operations are expected to generate an annual net cash flow of $350,000. This amount is projected for the next five years; a discount rate of 10 percent is deemed appropriate. Required Calculate Weihong Corporation’s reorganization value. For convenience, assume the operating cash flows take place at the end of each year. Round your answer to the nearest whole number

PS: I already submitted this question but the answer was wrong, it is not 1786500

During June, the following changes in inventory item 27 took place:

            June   1     Balance                         1,400 units @ £24

                    14     Purchased                        900 units @ £36

                    24     Purchased                        700 units @ £30

                      8     Sold                                 400 units @ £50

                    10     Sold                              1,000 units @ £40

                    29     Sold                                 500 units @ £44

Perpetual inventories are maintained in units only.

Instructions

What is the cost of the ending inventory for item 27 under the following methods? (Show calculations.)

(a)   FIFO.

(b)   Average Cost.

This company uses a perpetual inventory system. It had the following beginning inventory and current year purchases of its product.

Jan 1. Beginning Inventory ..... 50 units @ $100 = $5,000

Jan 14. Purchase .......................150 units @ $120 = 18,000

Apr 30. Purchase........................ 200 units @ $150= 30,000

Sept 26th. Purchase................... 300 units @ $200= 60,000

The company transacted sales on the following dates at $350 per unit sales price.

Jan 10. 30 units (specific cost: 30 @ $100)

Feb 15. 100 units (specific cost: 100 @ $120)

Oct 5. 350 units (specific cost: 100 @ $150 and 250 @ $200)

USING (THE WEIGHTED AVERAGE COSTING METHOD) ANSWER THE FOLLOWING QUESTIONS:

A. Identify and compute the costs to assign to the units sold. (Round per unit costs to three decimals.)

B. Identify and compute the costs to assign to the units in ending inventory. (Round inventory balances toe the dollar)

C. How likely is it that the Weighted Average method will reflect the actual physical flow of goods? How relevant is that factor in determining wether this is an acceptable method to use?

D. What is the impact of this method versus others in determining net income and income taxes?

E. How closely does the ending inventory amount reflect replacement cost?

On January 1, Morris Company offered a customer a 10% trade discount if the customer purchases 1,000 units of an item within the next 6 months. Each item sells for $100. Based on the customer’s previous purchase history, Morris believes there is a 60% chance that the customer will purchase more than 1,000 units. On January 10, the customer purchases 200 units on credit. Required: How much revenue should Morris recognize related to this customer? Prepare the entry to record the sale on account on January 10.

Requirement 2:

The company has just hired a new marketing manager who insists that unit sales can be dramatically increased by dropping the selling price from $8 to $7. The marketing manager would like to use the following projections in the budget:

a. What are the total expected cash collections for the year under this revised budget?

b. What is the total required production for the year under this revised budget?

c. What is the total cost of raw materials to be purchased for the year under this revised budget?

d. What are the total expected cash disbursements for raw materials for the year under this revised budget?

Mastery Problem: Activity-Based Costing

WoolCorp

WoolCorp buys sheep’s wool from farmers. The company began operations in January of this year, and is making decisions on product offerings, pricing, and vendors. The company is also examining its method of assigning overhead to products. You’ve just been hired as a production manager at WoolCorp.

Currently WoolCorp makes two products: (1) raw, clean wool to be used as stuffing or insulation and (2) wool yarn for use in the textile industry.

The company would like you to evaluate its costing methods for its raw wool and wool yarn.

Single Plantwide Rate

WoolCorp is currently using the single plantwide factory overhead rate method, which uses a predetermined overhead rate based on an estimated allocation base such as direct labor hours or machine hours. The rate is computed as follows:

Single Plantwide Factory Overhead Rate = (Total Budgeted Factory Overhead) ÷ (Total Budgeted Plantwide Allocation Base)

WoolCorp has been using combing machine hours as its allocation base.

The company would like to consider activity-based costing. In order to understand their current system better, you evaluate WoolCorp’s current method of costing for raw wool and wool yarn. The production staff has compiled the following information for you on the production of 450 pounds of either raw wool or wool yarn:

In the following table, use combing machine hours as the allocation base for assigning overhead costs to each product. When required, round your answers to the nearest dollar.

Single Plantwide Factory Overhead Rate: $ per combing hour

Feedback

Review the single plantwide factory overhead rate method, and allocate the costs using a single plantwide factory overhead rate and the combing hours used by each product.

Activity-Based Costing

In order to compare WoolCorp’s current method with activity-based costing, you interview the production staff and compile the following information, which relates to the costs for raw wool and wool yarn.

In the following table, compute and enter the activity rate for each of the three activities. If required, round your answers to the nearest cent.

In the following table, allocate the costs of sorting, cleaning, and combing based on the rates of activity consumed by each product’s process. When required, round your answers to the nearest dollar.

Ryan Company purchased a new machine on January 1, 2017, at a cost of $45,000. The company estimated that the machine has a salvage value of $5,000 and a useful life of four years. The machine is expected to produce 400,000 units.

Required:

1. Calculate depreciation expense to the nearest whole dollar for each year of the machine's useful life using straight-line depreciation.

2. Calculate depreciation expense to the nearest whole dollar for each year of the machine's useful life using double declining-balance depreciation.

3. If the machine was used to produce and sell 120,000 units in 2017, what would be the depreciation expense using the units-of-production method?  

4. What is the book value of the machine after three years using the double declining-balance method?

5. What is the book value of the machinery after three years using the straight-line method?

This question comprises four parts. Each part covers the topic of revenue recognition and is independent of each other part. Answer all questions to all four parts.

PART A:

The Royal Horseshoe Yacht Club (RHYC) is an association of members that offers a number of services including community and friendship among members, sailing courses for its members, meals in its upscale restaurant, moorage for boats at its home port of Horseshoe Bay, and moorage at outstations which are port facilities outside of Horseshoe Bay. Access to the club facilities, including the club restaurant, is available to members only.

RHYC is a highly sought-after yacht club and, therefore, few members quit once accepted into membership, resulting in members remaining in the club for an average of 25 years. RHYC follows IFRS and has a December 31 year end. To fund the services it provides, the club charges several fees as follows:

1. A one-time initiation fee of $50,000. This fee is non-refundable and is valid for as long as the member continues to be a member in good standing.

2. An annual membership fee of $10,000 due on January 1 each year, which is valid for the calendar year. This annual membership fee gives each member full access to the use of all of the club’s facilities. In addition, under the annual membership fee, a member will receive a credit of $2,400 towards restaurant meals in its upscale restaurant. This credit of $2,400 is a reasonable indication of the fair value of the meals for each year for a member.

3. Fees for moorage at the home port of Horseshoe Bay is based upon market rates according to the size of the boat. Fees for moorage at outstation facilities outside of Horseshoe Bay, however, are included in the annual membership fee.

4. Fees for sailing courses that are periodically offered to members vary with each course.

Required: (Be specific in your answers)

1. Explain how and when RHYC should recognize and revenue from the $50,000 one-time initiation fee using IFRS standards.

2. Explain how and when RHYC should recognize revenue from the $10,000 annual membership fee using IFRS standards.

3. Explain how and when RHYC should recognize revenue from the sailing courses and the moorage services at Horseshoe Bay using IFRS standards.

Cieslinski Corporation is conducting a time-driven activity-based costing study in its Tech Support Department. The company has provided the following data to aid in that study: Cieslinski Corporation Tech Support Department Data Inputs Resource Data: Number of employees 12 Average salary per employee $ 43,200 Weeks of employment per year 50 Minutes available per week (40 hours × 60 minutes) 2,400 Practical capacity percentage 80 % Activity Data: Routing Calls Resolving Problems Preparing Change Orders Minutes per unit of the activity 20 26 46 Cost Object Data: Customer G Customer H Customer I Number of calls routed 27 23 7 Number of problems resolved 16 9 9 Number of change orders prepared 0 1 0 On the Customer Cost Analysis report in time-driven activity-based costing, the total cost assigned to Customer I would be closest to: Multiple Choice $168.30 $105.30 $63.00 $0.00

Bluegill Company sells 15,000 units at $80 per unit. Fixed costs are $60,000, and income from operations is $300,000. Determine the following: Round the contribution margin ratio to two decimal places.

1. Who audited Apple Inc.'s financial statements as of, and for the period ended September 30, 2017?
2. According to Apple Inc.'s balance sheet as of September 30, 2017, what is their largest asset?
3. According to the following website, what are the four main sections of the 10-K or 10-Q
   1. The Sections Of The 10-Q And 10-K
4. The following is adapted from Financial Management for Executives (2nd ed.): Presented below is a list of financial statement accounts. Using the letter A for assets, L for liabilities, SE for shareholders’ equity, R for revenue, E for expenses, and N/A for not applicable, identify (a) whether the listed accounts appear on the balance sheet (B/S) or the income statement (I/S), and if so, (b) the nature of the account (i.e., A, L, SE, R, E, or N/A).
   1. Cash flow for operating activities
   2. Inventory
   3. Cost of goods sold
   4. Marketable securities
   5. Accounts receivable
   6. Retained earnings
   7. Income tax expense
   8. Cash
   9. Depreciation expense
   10. Common stock
   11. Accounts payable
   12. Dividends paid
   13. Miscellaneous revenue
   14. Office supplies
   15. Salaries payable
   16. Land
5. The following is adapted from Financial Management for Executives (2nd ed.): Compute the return on assets (ROA) for La Verne Company using end-of-year assets in your calculation.
   1. Total revenue …………………………………$250,000
   2. Total expenses…………………………………$190,000
   3. Total assets …………………………………$400,000
6. The following is adapted from Financial Management for Executives (2nd ed.): Compute the missing amounts from the financial statements on pages 33-35 of your textbook. You may assume that accounts receivable relate only to credit sales and that accounts payable relate only to credit purchases of inventory. There were no sales of property and equipment during 2015 and any purchases of property and equipment were made using cash.

Pranks, Inc. is a manufacturer of joke and novelty products for perpetrators of practical jokes. The corporation has paid several cash dividends throughout Year 6, the current year. It is also declaring a stock dividend to its stockholders as the calendar year-end approaches. You’ve been brought in as a consultant to assist with this process, and also to help determine whether some missing information can be determined before the distribution of the stock dividend is made. The company has two classes of stock: common stock and cumulative preferred stock.

You’ve been able to retrieve the following information so far:

1.The accounting manager for the company prepared the schedule of cash dividends paid from Year 1 to Year 6 on the Pranks, Inc. panel. However, one of the reasons for Pranks, Inc.’s missing information is that the manager is away on vacation and is unreachable by phone, because he is backpacking on a remote island that does not have cell phone reception. Management would like you to determine some information from the data you’ve collected regarding its outstanding stock.

Fill in the following answers.

2.The company declared a 4% common stock dividend on December 1, and would like you to compute the following pieces of missing information. The market value of the common shares is $25.00 on December 1, and is $32.00 on the actual distribution date of the stock, December 31.

Fill in the missing information in the following table, using the information given and your work on the other panels. All “before” items are before the stock dividend was declared. All “after” items are after the stock dividend was declared and closing entries were recorded at the end of the year.

Explain the differences between the Malaysian Accounting Standard Boards (MASB) and the Malaysian Institute of Accountant (MIA).