Davis, Inc., had the following quality costs for the years ended December 31, 20x4 and 20x5:

At the end of 20x4, management decided to increase its investment in control costs by 50 percent for each category’s items with the expectation that failure costs would decrease by 20 percent for each item of the failure categories. Sales were $12,500,000 for both 20x4 and 20x5.

Required:

1. Calculate the budgeted costs for 20x5.

$

Prepare an interim quality performance report. Enter all answers as positive amounts. If there is no variance enter "0" for your answer. If the budget variance amount is unfavorable select "Unfavorable" in the last column of the table, select "Favorable" if it is favorable, or No effect if there is no change. Round percentage answers to two decimal places. For example, 5.789% would be entered as "5.79".

2. What can be inferred from the report regarding the progress Davis has made?

3. What if sales were $12,500,000 for 20x4 and $15,625,000 for 20x5? What adjustment to budgeted rework costs would be made? (Note: Quality auditing is a discretionary cost and its budget is not affected by the change in sales revenue in 20x5.)

New total budgeted rework costs: $

The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports—the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 61 students enrolled in those two courses. Data concerning the company’s cost formulas appear below:

For example, administrative expenses should be $3,900 per month plus $42 per course plus $4 per student. The company’s sales should average $880 per student.

The company planned to run four courses with a total of 61 students; however, it actually ran four courses with a total of only 57 students. The actual operating results for September appear below:

Required:

Prepare a flexible budget performance report that shows both revenue and spending variances and activity variances for September. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Denzel Brooks opens a web consulting business called Venture Consultants and completes the following transactions in March.
Using the following transactions, record journal entries, create financial statements, and assess the impact of each transaction on the financial statements.
  

Need help completing this income statement:

1.What are some of the common problems users encounter when trying to compare financial statements of companies (even when they are in the same industry)? Describe how using XBRL could help alleviate these problems.

2. What are the current XBRL filing requirements for publicly-listed firms in the US?

3. Why should a business create XBRL-enabled financial reports?

4. Does the FDIC require banks to file any report(s) using XBRL? If so, which reports?

The following events occur for The Underwood Corporation during 2018 and 2019, its first two years of operations.
  

June 12, 2018 Provide services to customers on account for $36,200.

September 17, 2018 Receive $21,000 from customers on account.

December 31, 2018 Estimate that 45% of accounts receivable at the end of the year will not be received.

March 4, 2019 Provide services to customers on account for $51,200.

May 20, 2019 Receive $10,000 from customers for services provided in 2018.

July 2, 2019 Write off the remaining amounts owed from services provided in 2018.

October 19, 2019 Receive $41,000 from customers for services provided in 2019.

December 31, 2019 Estimate that 45% of accounts receivable at the end of the year will not be received.

Celestial Artistry Company is developing departmental overhead rates based on direct-labor hours for its two production departments, Etching and Finishing. The Etching Department employs 20 people and the Finishing Department employs 80 people. Each person in these two departments works 2,000 hours per year. The production-related overhead costs for the Etching Department are budgeted at $200,000, and the Finishing Department costs are budgeted at $320,000. Two service departments, Maintenance and Computing, directly support the two production departments. These service departments have budgeted costs of $48,000 and $250,000, respectively. The production departments’ overhead rates cannot be determined until the service departments’ costs are allocated. The following schedule reflects the use of the Maintenance Department’s and Computing Department’s output by the various departments.

2. Use the step-down method to allocate service department costs. Allocate the Computing Department’s costs first. Calculate the overhead rates per direct-labor hour for the Etching Department and the Finishing Department. (Do not round intermediate calculations. Round "Overhead rate per hour" to 3 decimal places and other answers to the nearest dollar amount.)

Milbank Repairs & Service, an electronics repair store, prepared the following unadjusted trial balance at the end of its first year of operations:

For preparing the adjusting entries, the following data were assembled:

Required:

• Fees earned but unbilled on June 30 were $8,980.
• Supplies on hand on June 30 were $7,330.
• Depreciation of equipment was estimated to be $12,410 for the year.
• The balance in unearned fees represented the June 1 receipt in advance for services to be provided. During June $17,260 of the services was provided.
• Unpaid wages accrued on June 30 were $1,590.

1. Journalize the adjusting entries necessary on June 30, 2019.

Feedback

1. Keep in mind that you will be making an adjusting entry for each of these that affects at least one income statement account (revenue or expense) and one balance sheet account (asset or liability). As you go through each of these, consider both sides of the transaction that results in an adjusting entry and identify related accounts. Remember, four different categories of adjusting entries include prepaid expenses (deferred expenses), unearned revenues (deferred revenues), accrued expenses (accrued liabilities), and accrued revenues (accrued assets) plus the adjustment for depreciation expense.

2. Determine the revenues, expenses, and net income of Milbank Repairs & Service before the adjusting entries.

3. Determine the revenues, expenses, and net income of Milbank Repairs & Service after the adjusting entries.

4. Determine the effect of the adjusting entries on Nancy Townes, Capital.
Nancy Townes, Capital decreases  by $.

Inventory information for Part 311 of Bramble Corp. discloses the following information for the month of June.

Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the value of the ending inventory at LIFO?

Assuming that the perpetual inventory method is used and costs are computed at the time of each withdrawal, what is the gross profit if the inventory is valued at FIFO?

Internal Rate of Return Method—Two Projects

Munch N’ Crunch Snack Company is considering two possible investments: a delivery truck or a bagging machine. The delivery truck would cost $48,601.8 and could be used to deliver an additional 54,000 bags of pretzels per year. Each bag of pretzels can be sold for a contribution margin of $0.38. The delivery truck operating expenses, excluding depreciation, are $0.52 per mile for 18,000 miles per year. The bagging machine would replace an old bagging machine, and its net investment cost would be $46,248.75. The new machine would require three fewer hours of direct labor per day. Direct labor is $15 per hour. There are 250 operating days in the year. Both the truck and the bagging machine are estimated to have six-year lives. The minimum rate of return is 11%. However, Munch N’ Crunch has funds to invest in only one of the projects.

a. Compute the internal rate of return for each investment. Use the above table of present value of an annuity of $1. If required, round your present value factor answers to three decimal places and internal rate of return to the nearest percent.

b. The bagging machine rate of return was less  than the minimum rate of return requirement of 11% while the delivery truck rate of return was greater  than the minimum rate of return requirement of 11%. Therefore the recommendation is to invest in the delivery truck .

Following is information on two alternative investments being considered by Jolee Company. The company requires a 10% return from its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)

a. For each alternative project compute the net present value.
b. For each alternative project compute the profitability index. If the company can only select one project, which should it choose?

Usefulness of income statement and cash flow statement for the invsetors

Define organizational culture, observable culture, and core culture

The following is an actual headline that was recently reported in the media about the New Zealand company Sky TV:

“Sky TV’s profit dropped 20.9 per cent in the year to the end of June. The pay TV company released its full-year results today, which showed a net profit of more than $116.3 million, down from $147.1 million the previous year.”

(a). Discuss the key findings of the Ball and Brown (1968) study and explain how the above earnings announcement might affect Sky TV’s share price.