Universal Foods issued 10% bonds, dated January one, with a face amount of 150 million dollars on January 1st 2016. do Bonds mature on December 31st 2030. the market rate of interest for similar issues with 12%. Interest is paid semi-annually on June 30th and December 31st. Universal uses the straight-line method.

1. determine the price of the bond. January 1, 2016.
2. prepare the journal entry to record the issuance by Universal Foods on January 1st 2016
3. prepare the journal entry to record interest on June 30th 2016
4. prepare the journal entry to record interest on December 31st 2023

Differential Analysis for Further Processing

The management of International Aluminum Co. is considering whether to process aluminum ingot further into rolled aluminum. Rolled aluminum can be sold for $2,200 per ton, and ingot can be sold without further processing for $1,100 per ton. Ingot is produced in batches of 80 tons by smelting 500 tons of bauxite, which costs $105 per ton of bauxite. Rolled aluminum will require additional processing costs of $620 per ton of ingot, and 1.25 tons of ingot will produce 1 ton of rolled aluminum (due to trim losses).

Required:

1. Prepare a differential analysis as of February 5 to determine whether to sell aluminum ingot (Alternative 1) or process further into rolled aluminum (Alternative 2). Use a minus sign to indicate subtracted amounts, negative amounts, or a loss.

Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Ltd., for a cost of $39 per unit. To evaluate this offer, Troy Engines, Ltd., has gathered the following information relating to its own cost of producing the carburetor internally:

*One-third supervisory salaries; two-thirds depreciation of special equipment (no resale value).

Required:

1. Assuming the company has no alternative use for the facilities that are now being used to produce the carburetors, what would be the financial advantage (disadvantage) of buying 21,000 carburetors from the outside supplier?

2. Should the outside supplier’s offer be accepted? yes or no

3. Suppose that if the carburetors were purchased, Troy Engines, Ltd., could use the freed capacity to launch a new product. The segment margin of the new product would be $210,000 per year. Given this new assumption, what would be the financial advantage (disadvantage) of buying 21,000 carburetors from the outside supplier?

4. Given the new assumption in requirement 3, should the outside supplier’s offer be accepted? yes or no

Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture and sell one of two new products for a five-year period. His annual pay raises are determined by his division’s return on investment (ROI), which has exceeded 22% each of the last three years. He has computed the cost and revenue estimates for each product as follows:

The company’s discount rate is 20%.

I have solved the following:

1. Calculate the payback period for each product. - Product A = 2.85 Product B = 2.88

2. Calculate the net present value for each product. - Product A = $18,830 Product B = $22,218

Having trouble trying to solve these:

3. Calculate the internal rate of return for each product. (Round percentage answers to 1 decimal place. i.e. 0.1234 should be considered as 12.3% and round discount factor(s) to 3 decimal places.)

4. Calculate the project profitability index for each product. (Round discount factor(s) to 3 decimal places. Round your answers to 2 decimal places.)

5. Calculate the simple rate of return for each product. (Round percentage answers to 1 decimal place. i.e. 0.1234 should be considered as 12.3%.)

6a. For each measure, identify whether Product A or Product B is preferred.

Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 2.20 ounces $ 23.00 per ounce $ 50.60 Direct labor 0.70 hours $ 12.00 per hour 8.40 Variable manufacturing overhead 0.70 hours $ 3.00 per hour 2.10 Total standard cost per unit $ 61.10 During November, the following activity was recorded related to the production of Fludex: Materials purchased, 11,000 ounces at a cost of $237,600. There was no beginning inventory of materials; however, at the end of the month, 2,650 ounces of material remained in ending inventory. The company employs 18 lab technicians to work on the production of Fludex. During November, they each worked an average of 190 hours at an average pay rate of $10.50 per hour. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $6,200. During November, the company produced 3,750 units of Fludex. Required: 1. For direct materials: a. Compute the price and quantity variances. b. The materials were purchased from a new supplier who is anxious to enter into a long-term purchase contract. Would you recommend that the company sign the contract? 2. For direct labor: a. Compute the rate and efficiency variances. b. In the past, the 18 technicians employed in the production of Fludex consisted of 5 senior technicians and 13 assistants. During November, the company experimented with fewer senior technicians and more assistants in order to reduce labor costs. Would you recommend that the new labor mix be continued? 3. Compute the variable overhead rate and efficiency variances.

The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31:

Required:

1. Prepare a traditional income statement for the quarter ended March 31.

2. Prepare a contribution format income statement for the quarter ended March 31.

3. What was the contribution margin per unit?

Prepare a traditional income statement for the quarter ended March 31.

Prepare a contribution format income statement for the quarter ended March 31.

What was the contribution margin per unit? (Round your final answer to nearest whole dollar.)

Thermal Rising, Inc., makes paragliders for sale through specialty sporting goods stores. The company has a standard paraglider model, but also makes custom-designed paragliders. Management has designed an activity-based costing system with the following activity cost pools and activity rates:

Activity Cost Pool Activity Rate

Supporting direct labor ....................... $26 per direct labor-hour

Order processing ................................ $284 per order

Custom design processing ................. $186 per custom design

Customer service ............................... $379 per customer

Management would like an analysis of the profitability of a particular customer, Big Sky Outfitters, which has ordered the following products over the last 12 months:

The company’s direct labor rate is $19.50 per hour.

Required:

Using the company’s activity-based costing system, compute the total customer margin.

This course is about Understanding Finanical Statement.

There are two companies which are competitors(same SIC classifications). The Coca Cola Company will be a publicly-traded U.S. company which reports under GAAP and Coca- Cola European Partners will be a foreign competitor, also publicly-traded, which reports under IFRS. Here is the requirement: briefly describe, in your own words and citing company literature where appropriate, the companies under consideration. Finally “which company would be the better investment?” based upon your ratio analysis.

Choose a firm that has been involved in a recent Foreign Corrupt Practice Act violations or the Sarbanes Oxley law violations controversy ( get 2018 recent event) - Analyze in 300-500 words

a) Describe the firm's operations

b) Identify the firm's CEO, CFO and external auditors

c) Denote the circumstances surrounding the violation.

Tamarisk Company is a multiproduct firm. Presented below is information concerning one of its products, the Hawkeye.

(a)

Correct answer iconYour answer is correct.

Calculate average-cost per unit. (Round answer to 4 decimal places, e.g. 2.7613.)

eTextbook and Media

Assistance Used

Attempts: 1 of 3 used

(b)

Incorrect answer iconYour answer is incorrect.

Compute cost of goods sold, assuming Tamarisk uses: (Round average cost per unit to 4 decimal places, e.g. 2.7631 and final answers to 0 decimal places, e.g. 6,548.)

Butch's Pool Service & Supply, Inc. (BPSS) is completing the accounting process for the year just ended, December 31, 2018. The transactions during 2018 have been journalized and posted. The following data with respect to adjusting entries are available:

1. BPSS owed $7,500 wages to the office receptionist and three assistants for working the last 10 days in December. The employees will be paid in January 2019.
2. On October 1, 2018, PPSS received $24,000 from customers who prepaid pool cleaning service for one year beginning on November 1, 2018.
3. The company received a $520 utility bill for December utility usage. It will be paid in January 2018.
4. BPSS borrowed $30,000 from a local bank on May 1, 2018, signing a note with a 10 percent interest rate. The note and interest are due on May 1, 2019.
5. On December 31, 2018, BPSS cleaned and winterized a customer's pool for $800, but the service was not yet recorded on December 31.
6. On August 1, 2018, BPSS purchased a two-year insurance policy for $4,200, with coverage beginning on that date. The amount was recorded as Prepaid Insurance when paid.
7. On December 31, 2018, BPSS had $3,100 of pool cleaning supplies on hand. During 2018, BPSS purchased supplies costing $23,000 from Pool Corporation, Inc., and had $2,400 of supplies on hand on December 31, 2017.
8. BPSS estimated that depreciation on its buildings and equipment was $8,300 for the year.
9. At December 31, 2018, $110 of interest on investments was earned that will be received in 2019.

Prepare adjusting entries for Butch's Pool Service & Supply, Inc., on December 31, 2018.

Campbell Manufacturing pays its production managers a bonus based on the company’s profitability. During the two most recent years, the company maintained the same cost structure to manufacture its products.

(Assume that selling and administrative expenses are associated with goods sold.)

Levine sells its products for $109.3 per unit.

Required

1. Prepare income statements based on absorption costing for 2018 and 2019.

2. Since Levine sold the same number of units in 2018 and 2019, why did net income increase in 2019?

During their senior year at Clarkson College, two business students, Gerry Keating and Louis Lamont, began a part-time business making personal computers. They bought the various components from a local supplier and assembled the machines in the basement of a friend’s house. Their only cost was $359 for parts; they sold each computer for $638. They were able to make three machines per week and to sell them to fellow students. The activity was appropriately called Keating & Lamont Computers (KLC). The product quality was good, and as graduation approached, orders were coming in much faster than KLC could fill them.

A national CPA firm made Ms. Lamont an attractive offer of employment, and a large electronics company was ready to hire Mr. Keating. Students and faculty at Clarkson College, however, encouraged the two to make KLC a full-time venture. The college administration had decided to require all students in the schools of business and engineering to buy their own computers beginning in the coming fall term. It was believed that the quality and price of the KLC machines would attract the college bookstore to sign a contract to buy a minimum of 1,000 units the first year for $501 each. The bookstore sales were likely to reach 2,000 units per year, but the manager would not make an initial commitment beyond 1,000.

The prospect of $501,000 in annual sales for KLC caused the two young entrepreneurs to wonder about the wisdom of accepting their job offers. Before making a decision, they decided to investigate the implications of making KLC a full-time operation. Their study provided the following information relating to the production of their computers:

The two owners expected to devote their time to the sales and administrative aspects of the business.

Required

1. Classify each cost item into the categories of direct materials, direct labor, and manufacturing overhead.

2. Classify each cost item as either variable or fixed.

3. What is the cost per computer if KLC produces 1,000 units per year? What is the cost per unit if KLC produces 2,000 units per year?

4. If the job offers for Mr. Keating and Ms. Lamont totaled $93,000, would you recommend that they accept the offers or proceed with plans to make KLC a full-time venture?

3.Refer to FNM's last publically reported Balance Sheet before it was placed into Conservatorship:

If you believed that FNM's mortgage assets, as reported, were inflated by 70,000,000K, what journal entries would you use to correct this error? Choose all the correct entries.

a) dr Mortgage Write Down Expense 70,000,000

b) dr Short/Current Long Term Debt 70,000,000

c) cr Cash 70,000,000

d) cr Total Assets 70,000,000

e) dr Mortgages 70,000,000

f) cr Mortgage Write Down Expense 70,000,000

g) cr Mortgages 70,000,000

4.Refer to the information provided in Question 3 above. After you have corrected the value of FNM's mortgage assets, what is the value of the firm's equity?