Nihonno Tsukuruno, Inc. uses the FIFO method of process costing. The firm has only one production department. It has the following cost per equivalent unit rates for the month of January. $12.50 direct materials per equivalent unit $17.25 conversion costs per equivalent unit Here are some additional details about the firm. The firm began the period (i.e. January 1) with $10,000 of direct materials cost and $15,000 of conversion costs in beginning WIP. Those beginning WIP costs were incurred for 1,000 beginning WIP units that were 50% complete with respect to conversion costs and direct materials. The firm completed and transferred out a total of 59,000 units in January. What is the cost of units completed and transferred out for January (including direct materials costs and conversion costs)? Selected Answer: d. $1,755,250 Answers: a. $1,780,250 b. $1,740,375 c. $1,765,375 d. $1,755,250

Isuzu Company provided the following data as of January 1, 2028:
• 6% Preference share-10,000 shares, par 200 2,000,000
• Ordinary share-50,000 shares, par P100 5,000,000
• Share Premium-Preferred 400,000
• Share Premium-Ordinary 1,000,000
• Accumulated Profits/Retained Earnings 4,000,000

Transactions during 2028 were as follows:
• Issued 10,000 ordinary shares at P100 per share for cash considerations
• Purchased 2,500 treasury shares (Ordinary) at P110 per share
• Declared share split ordinary share, 2 for 1
• Reissued 1,500 treasury shares (Ordinary) for P90 per share
• Shareholders donated 5,000 corporation’s owned ordinary shares to the corporation.
• Subsequently 3,000 donated shares were reissued at P40 per share.
• Net income for the year was P 1,600,000. (Close to Accumulated Profits/ Retained Earnings)
• Appropriated Accumulated Profits equal to the cost of treasury shares.

Required:
1. Prepare the journal entries
2. Present the total shareholder’s equity on December 31,2028

ACCT505 – Project 1 Instructions You have just been contracted as a budget consultant by LBJ Company, a distributor of bracelets to various retail outlets across the country. The company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash. You have decided to prepare a cash budget for the upcoming fourth quarter in order to show management the benefits that can be gained from proper cash planning. You have worked with accounting and other areas to gather the information assembled below. The company sells many styles of bracelets, but all are sold for the same $10 price. Actual sales of bracelets for the last three months and budgeted sales for the next six months follow (shown in number of units): July (actual) 20,000 August (actual) 26,000 September (actual) 40,000 October (budget) 70,000 November (budget) 110,000 December (budget) 60,000 January (budget) 30,000 February (budget) 28,000 March (budget) 25,000 The concentration of sales in the fourth quarter is due to the Christmas holiday. Sufficient inventory should be on hand at the end of each month to supply 40% of the bracelets sold in the following month. Suppliers are paid $4 for each bracelet. Fifty-percent of a month's purchases is paid for in the month of purchase; the other 50% is paid for in the following month. All sales are on credit with no discounts. The company has found, however, that only 20% of a month's sales are collected in the month of sale. An additional 70% is collected in the following month, and the remaining 10% is collected in the second month following sale. Bad debts have been negligible. Monthly operating expenses for the company are given below. Variable expenses: Sales commissions 4% of sales Fixed expenses: Advertising $220,000 Rent $20,000 Salaries $110,000 Utilities $10,000 The company plans to purchase $22,000 in new equipment during October and $50,000 in new equipment during November; both purchases will be for cash. The company declares dividends of $20,000 each quarter, payable in the first month of the following quarter. Other relevant data is given below: Cash balance as of September 30 $74,000 Merchandise purchases for September $200,000 The company maintains a minimum cash balance of at least $50,000 at the end of each month. All borrowing is done at the beginning of a month; any repayments are made at the end of a month. The company has an agreement with a bank that allows the company to borrow the exact amount needed at the beginning of each month. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded.

Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak sales occur in May of each year, as shown in the company’s sales budget for the second quarter given below:

From past experience, the company has learned that 20% of a month’s sales are collected in the month of sale, another 70% are collected in the month following sale, and the remaining 10% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $230,000, and March sales totaled $260,000.

Required:

1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter.

2. What is the accounts receivable balance on June 30th?

Blue Skies Equipment Company uses the aging approach to estimate bad debt expense at the end of each accounting year. Credit sales occur frequently on terms n/60. The balance of each account receivable is aged on the basis of three time periods as follows: (1) not yet due, (2) up to one year past due, and (3) more than one year past due. Experience has shown that for each age group, the average loss rate on the amount of the receivable at year-end due to uncollectibility is (a) 9 percent, (b) 12 percent, and (c) 35 percent, respectively.

At December 31, 2019 (end of the current accounting year), the Accounts Receivable balance was $49,900 and the Allowance for Doubtful Accounts balance was $1,000 (credit). In determining which accounts have been paid, the company applies collections to the oldest sales first. To simplify, only five customer accounts are used; the details of each on December 31, 2019, follow:

Required:

1. Compute the estimated uncollectiable amount for each age category and in total

Not yet Due______

Up to one year past due______

More than one year past due____

Total accounts recieveable___

2) Journal Entry

3)Partial Income Statement & Partial Balance sheet

The auditor’s decisions regarding evidence accumulation can be broken into four sub decisions:

• Which audit procedures to use
• What sample size to select for a given procedure
• Which items to select from the population covering the sampling area
• When to perform the procedures (timing)

One decision relates to determining the nature of the audit procedure to be used to collect the evidence; i.e., which audit procedures to use.

Examine one of the remaining three audit evidence decisions that the auditor makes.

• Which of the four sub decisions is the most important and why?
• Which is the least important and why?
• If one of the sub decisions were removed, how would it impact the auditor’s decisions regarding evidence accumulation?

Financial Accounting

You will each find an article from the past three months that relates to the topics such as long-term liabilities (i.e. debt) or stockholders’ equity.  There are many topics to select from including financial statements, company performance, ethics, inventory, receivables, liabilities, issuing stocks, etc.

submit a thread of 200-400 words to summarize the article selected and identify how the article relates to topic(s). You must reference a minimum of two sources. Be sure to not plagiarize, but paraphrase sources. The article selected should be attached for reference.

Bubba's Custom Shrimp Catering uses activity-based costing to determine the cost of its catering events. The firm has two activity cost pools: cooking (activity rate is $500 per catering event) and serving (activity rate is $12 per plate). The firm currently has 25 catering events a year, with an average of 50 plates per event. It also incurs about $400 in direct costs for each event. The firm has four opportunities to improve its processes (listed below in the answer choices). None of these process improvements is expected to affect revenue. Each process improvement costs $2,500. Which of the following is the MOST profitable process improvement (read the answer choices carefully)? Selected Answer: c. Reduce direct costs per event by 25% Answers: a. Reduce the number of plates per event by 20%. b. Reduce serving activity rate by 25% c. Reduce direct costs per event by 25% d. Reduce cooking activity rate by 25%

Variable and Absorption Costing
Summarized data for 2016 (the first year of operations) for Gorman Products, Inc., are as follows:

a. Prepare an income statement based on full absorption costing.
Only use a negative sign with your answer for net income (loss), if the answer represents a net loss. Otherwise, do not use negative signs with any answers. Round answers to the nearest whole number, when applicable.

b. Prepare an income statement based on variable costing.
Only use a negative sign with your answer for net income (loss), if the answer represents a net loss. Otherwise, do not use negative signs with any answers. Round answers to the nearest whole number, when applicable.

c. Assume that you must decide quickly whether to accept a special one-time order for 1,000 units for $15 per unit.

Which income statement presents the most relevant data? Answerabsorption costingvariable costing

Determine the apparent profit or loss on the special order based solely on these data.
Use a negative sign with your answer if the special order creates an apparent loss. Round answer to the nearest whole number.

$Answer  

d. If the ending inventory is destroyed by fire, which costing approach would you use as a basis for filing an insurance claim for the fire loss? Why?
Select the most appropriate statement.

Absorption costing approach because the cost should include a reasonable portion of fixed manufacturing costs.

Variable costing approach because the cost should include a reasonable portion of fixed manufacturing costs.

Please answer all parts of the question.

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Oscar Clemente is the manager of Forbes Division of Pitt, Inc., a manufacturer of biotech products. Forbes Division, which has $4.03 million in assets, manufactures a special testing device. At the beginning of the current year, Forbes invested $5.04 million in automated equipment for test machine assembly. The division’s expected income statement at the beginning of the year was as follows:

A sales representative from LSI Machine Company approached Oscar in October. LSI has for $5.22 million a new assembly machine that offers significant improvements over the equipment Oscar bought at the beginning of the year. The new equipment would expand division output by 10 percent while reducing cash fixed costs by 5 percent. It would be depreciated for accounting purposes over a three-year life. Depreciation would be net of the $594,000 salvage value of the new machine. The new equipment meets Pitt's 12 percent cost of capital criterion. If Oscar purchases the new machine, it must be installed prior to the end of the year. For practical purposes, though, Oscar can ignore depreciation on the new machine because it will not go into operation until the start of the next year.

The old machine, which has no salvage value, must be disposed of to make room for the new machine.

Pitt has a performance evaluation and bonus plan based on residual income. Pitt uses a cost of capital of 12 percent in computing residual income. Income includes any losses on disposal of equipment. Investment is computed based on the end-of-year balance of assets, net book value. Ignore taxes.

Required:

a. What is Forbes Division’s residual income if Oscar does not acquire the new machine? (Negative amount should be indicated by a minus sign. Enter your answer in thousands of dollars. Round your final answers to nearest whole dollar.)

b. What is Forbes Division’s residual income this year if Oscar acquires the new machine? (Negative amount should be indicated by a minus sign. Enter your answer in thousands of dollars. Round your final answers to nearest whole dollar.)

c. If Oscar acquires the new machine and operates it according to specifications, what residual income is expected for next year? (Negative amount should be indicated by a minus sign. Enter your answer in thousands of dollars. Round your final answers to nearest whole dollar.)

AHH! Corporation has three product lines with limited demand. The firm has NO fixed costs. Below are some facts about the firm. Oh! No! Way! Monthly demand (units) 100 120 140 Machine hours per unit 3 6 8 Price per unit $70 $75 $80 Variable costs per unit $60 $62 $60 The firm can only supply 1,800 hours of machine time per month between the three product lines. What is the firm's maximum monthly profit? Selected Answer: c. $4,300 Answers: a. $5,560 b. $4,510 c. $4,300 d. $4,650

Tawana owns and operates a sole proprietorship and has a 37 percent marginal tax rate. She provides her son, Jonathon, $10,000 a year for college expenses. Jonathon works as a pizza delivery person every fall and has a marginal tax rate of 15 percent.

How much pretax income does it currently take Tawana to generate the $10,000 (after-taxes) given to Jonathon?

If Jonathon worked for his mother’s sole proprietorship, what salary would she have to pay him to generate $10,000 after taxes (ignoring any Social Security, Medicare, or self-employment tax issues)?

How much money would the strategy save?

Mah Sing Group Berhad and UEM Sunrise Berhad are two leading property developers in Malaysia. The corporate profile of these two companies is as follows:

Mah Sing Group Berhad was listed on the Main Board of Bursa Malaysia in 1992 and ventured into property development in 1994. Mah Sing is one of Malaysia’s fully integrated developers with residential, commercial and industrial developments. The Group currently has 47 projects (34 ongoing) in Greater Kuala Lumpur and Klang Valley, Penang, Johor as well as Sabah. A leading property developer in Malaysia, Mah Sing’s diverse portfolio includes master planned townships, integrated developments, Grade A office buildings, retail projects and industrial developments. For more than two decades, Mah Sing has continuously created iconic developments that have won over 200 domestic and global awards for company performance, corporate governance, product design, concept, innovation and quality. Mah Sing has launched numerous big projects with luxury in mind. Some of the notables are Icon Residence (Mont Kiara), M City (Jalan Ampang), M Residence (Rawang), Icon City (Petaling Jaya), and Ferringhi Residence (Batu Ferringhi, Penang).

UEM Sunrise Berhad is a public-listed Company and one of Malaysia’s leading property developers. It is the Flagship Company for township and property development businesses of UEM Group Berhad and Khazanah Nasional Berhad. UEM group is wholly-owned by Khazanah, the strategic Investment fund of the government of Malaysia. The Company has core competencies in macro township development; high-rise residential, commercial, retail and integrated developments; as well as property management and project & construction services. The company is renowned for its numerous award-winning high-rise and landed residential; commercial and mix-use developments in Iskandar Puteri, Kuala Lumpur's affluent Mont' Kiara enclave, the Kuala Lumpur City Centre, Cyberjaya, Shah Alam, Bangi and Seremban.

Selected ratios for the three financial years of 2015, 2016 and 2017 are as follows:

Required:

1. Compare the performance of these two companies based on all the ratios above.

2. Identify two ratios that will be important to banks in evaluating loan application from these companies.

3. Identify two ratios that investors will consider in deciding to invest in any of these two companies.

Frederick and Sons is a small company that makes faucets rings.   They have experienced a larger than normal bad debts due to the slowdown in the economy.  Koehler Corporation is a multimillion-dollar Corporation that makes faucets and other plumber supplies is also experiencing bad debt losses. What method would each company use when writing off customers’ accounts unable to pay and why?   Give an entry for each when actually writing off a customer’s account.

Marc and Michelle are married and earned salaries this year of $64,000 and $12,000, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $500 from corporate bonds. Marc contributed $2,500 to an individual retirement account, and Marc paid alimony to a prior spouse in the amount of $1,500 (under a divorce decree effective June 1, 2005). Marc and Michelle have a 10-year-old son, Matthew, who lived with them throughout the entire year. Thus, Marc and Michelle are allowed to claim a $2,000 child tax credit for Matthew. Marc and Michelle paid $6,000 of expenditures that qualify as itemized deductions and they had a total of $3,500 in federal income taxes withheld from their paychecks during the year.

a. What is Marc and Michelle’s gross income?

b. What is Marc and Michelle’s adjusted gross income?

c. What is the total amount of Marc and Michelle’s deductions from AGI?

d. What is Marc and Michelle’s taxable income?

e. What is Marc and Michelle’s taxes payable or refund due for the year?