Managers are responsible for numerous activities including planning, operating, and controlling.

Define these three types of activities and provide at least one example of each.

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2.

Grant Enterprises is considering the introduction of a new product. The marketing and production departments have begun informal discussions about its design, production, and sales. List three examples of accounting information that the marketing and production managers would find useful in their meeting.

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A friend has informed you of a part-time job for which you are well-qualified. It would begin next semester and require working 20 hours a week at a rate of $35 per hour. You would have to commute 2 hours round trip four days a week to work. You have already registered for 18 credit hours (6 classes) next semester, and you have been told that each of the classes is very demanding, requiring projects and extensive study time. If you complete these 18 hours, you will graduate. You are only taking 12 credit hours this semester. You have enough money for tuition ($100 per credit hour) and room and board but would love some extra spending money.

3.

a. Define your problem related to the information above.

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4.

b. What information above would you consider relevant to the decision? Why?

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5.

c. What information above would you consider not relevant to the decision? Why?

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6.

d. What other factors not provided above might be relevant to the decision?

7.

e. What are some possible alternatives?

8.

f. Which alternative would you choose? Why?

For August, Royal Consulting and Mediation Practice (RCMP) worked 900 hours for Alberta Company and 2,100 hours for Ontario Corporation. RCMP bills clients at the rate of $450 per hour; labor cost for its consulting staff is $250 per hour. The total number of hours worked in August was 3,000, and overhead costs were $65,000. Overhead is applied to clients at $27 per labor-hour. In addition, RCMP had $265,000 in marketing and administrative costs. All transactions are on account. All services were billed.

Required:

a. Show labor and overhead cost flows through T-accounts.

b. Prepare an income statement for the company for August

Please explain any calculations.

Basic Concepts

Roberts Company is considering an investment in equipment that is capable of producing more efficiently than the current technology. The outlay required is $2,293,200. The equipment is expected to last five years and will have no salvage value. The expected cash flows associated with the project are as follows:

The present value tables provided in Exhibit 19B.1 and Exhibit 19B.2 must be used to solve the following problems.

Required:

1. Compute the project’s payback period. If required, round your answer to two decimal places.
years

2. Compute the project’s accounting rate of return. Enter your answer as a whole percentage value (for example, 16% should be entered as "16" in the answer box).
%

3. Compute the project’s net present value, assuming a required rate of return of 10 percent. When required, round your answer to the nearest dollar.
$

4. Compute the project’s internal rate of return. Enter your answers as whole percentage values (for example, 16% should be entered as "16" in the answer box).

Between  % and  %

Clopack Company manufactures one product that goes through one processing department called Mixing. All raw materials are introduced at the start of work in the Mixing Department. The company uses the weighted-average method of process costing. Its Work in Process T-account for the Mixing Department for June follows (all forthcoming questions pertain to June):

The June 1 work in process inventory consisted of 5,200 units with $19,130 in materials cost and $16,870 in conversion cost. The June 1 work in process inventory was 100% complete with respect to materials and 60% complete with respect to conversion. During June, 37,700 units were started into production. The June 30 work in process inventory consisted of 8,400 units that were 100% complete with respect to materials and 50% complete with respect to conversion.

Required:

1. Prepare the journal entries to record the raw materials used in production and the direct labor cost incurred.

2. Prepare the journal entry to record the overhead cost applied to production.

3. How many units were completed and transferred to finished goods during the period?

4. Compute the equivalent units of production for materials.

5. Compute the equivalent units of production for conversion.

6. What is the cost of beginning work in process inventory plus the cost added during the period for materials?

7. What is the cost of beginning work in process inventory plus the cost added during the period for conversion?

8. What is the cost per equivalent unit for materials?

9. What is the cost per equivalent unit for conversion?

10. What is the cost of ending work in process inventory for materials?

11. What is the cost of ending work in process inventory for conversion?

12. What is the cost of materials transferred to finished goods?

13. What is the amount of conversion cost transferred to finished goods?

Ringmeup, Inc., had net income of $137,200 for the year ended December 31, 2016. At the beginning of the year, 39,000 shares of common stock were outstanding. On May 1, an additional 16,000 shares were issued. On December 1, the company purchased 4,700 shares of its own common stock and held them as treasury stock until the end of the year. No other changes in common shares outstanding occurred during the year. During the year, Ringmeup, Inc., paid the annual dividend on the 9,000 shares of 3.65%, $100 par value preferred stock that were outstanding the entire year.

Required:

Calculate basic earnings per share of common stock for the year ended December 31, 2016

PLEASE Fill in the blanks:

1) The group responsible for overseeing the corporation's activities is /are the ________.

2) A corporation is responsible for its own acts and debts because it is considered a ________.

3) The number of shares that a corporation's charter allows it to sell is the ________ stock.

4) ________ bonds can be exchanged for a fixed number of shares of the issuing corporation's common stock.

5) ________ bonds have an option exercisable by the issuer to retire them at a stated dollar amount prior to maturity.

Exercise 15-18 (Part Level Submission)

Cheyenne Company reported the following amounts in the stockholders’ equity section of its December 31, 2016, balance sheet.

During 2017, Cheyenne took part in the following transactions concerning stockholders’ equity.

In 1993, Skysong Company completed the construction of a building at a cost of $2,120,000 and first occupied it in January 1994. It was estimated that the building will have a useful life of 40 years and a salvage value of $64,000 at the end of that time. Early in 2004, an addition to the building was constructed at a cost of $530,000. At that time, it was estimated that the remaining life of the building would be, as originally estimated, an additional 30 years, and that the addition would have a life of 30 years and a salvage value of $21,200. In 2022, it is determined that the probable life of the building and addition will extend to the end of 2053, or 20 years beyond the original estimate.

Compute the annual depreciation to be charged, beginning with 2022. (Round answer to 0 decimal places, e.g. 45,892.)

The flowing numbers come from an equity statement for fiscal year 2011 (in millions):

Shareholders’ equity May 31, 2010 $2,700

Issue of shares for exercise of stock options 405

Repurchase of shares (132)

Net income 467

Unrealized loss on debt securities (23)

Tax benefit from the exercise of stock options 70

Common dividends paid (250)

Preferred dividends paid (10)

Shareholders’ equity May 31, 2011 3,227

The firm’s tax rate is 35 percent. Shareholders’ equity at May 31, 2010 includes $120 million in preferred stock.

a. Calculate the loss to common shareholders from the exercise of stock options.

b. Present a reformulated statement of common shareholders’ equity that identifies comprehensive income and separates it from net payout to shareholders.

c. What was the return on common equity (ROCE) for the year? (Use beginning equity in this calculation.)

A company is considering purchasing a new second machine in order to expand their business. The information for the new machine is:

Cost= $100,000

Increase in contribution margin= $25,000

Life of the machine= 5 years

Required rate of return = 10%

Calculate the following:

a. Net present value (NPV) (Use factors to three decimal places, X.XXX, and use a minus sign or parentheses for a negative net present value. Enter the net present value of the investment rounded to the nearest whole dollar)

b. Payback period (Round your answer to two decimal places.)

c. Discounted payback period (Round interim calculations to the nearest whole dollar. Round the rate to two decimal places, X.XX%.)

d. Internal rate of return (Round the rate to two decimal places, X.XX%.)

e. Accrual accounting rate of return based on net initial investment (Round interim calculations to the nearest whole dollar. Round the rate to two decimal places, X.XX%.

Question 2

Hydropure Ltd commenced operations at the beginning of the current year. One of the company’s products, an alkaline antioxidant water filter, sells for $299 per unit. Information related to the current year’s activities are as follows:

$

Variable costs per unit:

Direct materials 40

Direct labour   74

Manufacturing overhead 96

Annual fixed costs:

Manufacturing overhead 700,000   

Selling and administrative 880,000

Production and sales activity:

Production (units) 25,000
Sales (units) 20,000

Hydropure Ltd carries its finished goods inventory at the average unit cost of production. There was no work in process at the yearend.

Required:

(a) Determine the cost of the yearend finished goods inventory.

(b) Calculate Hydropure Ltd’s net profit for the current year. Ignore taxation.

(c) If the next year’s production decreases to 24,000 units and the general cost behaviour and patterns do not change, what is the likely effect on:

(i) Direct labour cost of $74 per unit? Explain why.

(ii) Fixed manufacturing overhead cost of $700,000? Explain why.

(iii) Fixed selling and administrative cost of $880,000? Explain why.

(iv) Average unit cost of production? Explain why.

Denzel Brooks opened a Web consulting business called Venture Consultants and completed the following transactions in March.

  
Required:
1. Prepare general journal entries to record these transactions using the following titles: Cash (101); Accounts Receivable (106); Office Supplies (124); Prepaid Insurance (128); Prepaid Rent (131); Office Equipment (163); Accounts Payable (201); Common Stock (307); Dividends (319); Services Revenue (403); and Utilities Expense (690).
2. Post the journal entries from part 1 to the ledger accounts.
3. Prepare a trial balance as of the end of March.