Harmony Audio Company manufactures two models of speakers, DL and XL. Based on the following production and sales data for September 2016, prepare (a) a sales budget and (b) a production budget.

a. Prepare a sales budget.

b. Prepare a production budget.

Part B Bruce Manufacturing Ltd’s post-closing trial balance at 30 June 2019 included the following balances: Machinery Control (at cost) $244 480 Accumulated Depreciation – Machinery Control 113 800 Fixtures (at cost) 308 600 Accumulated Depreciation – Fixtures 134 138 The Machinery Control and Accumulated Depreciation – Machinery Control accounts are supported by subsidiary ledgers. Details of machines owned at 30 June 2019 are as follows: Machine Purchase Cost Estimated Estimated date useful Life residual value 1 28 Apr 2015 $74 600 5 years $3 800 2 04 Feb 2017 $82 400 5 years $4 400 3 26 Mar 2018 $87 480 6 years $5 400 Additional information  Bruce Manufacturing Ltd uses the general journal for all journal entries, records depreciation to the nearest month, balances its accounts 6-monthly, and records amounts to the nearest dollar.  Bruce Manufacturing Ltd uses straight-line depreciation for machinery and diminishing balance depreciation at 20% p.a. for fixtures.The following transactions and events occurred from 1 July 2019 onwards: 2019 03 July Exchanged items of fixtures (cost: $100 600; carrying amount at exchange date: $56 872; fair value at exchange date: $57 140) for a used machine (Machine 4). Machine 4’s fair value at exchange date was $58 000. Machine 4 originally cost $92 660 and had been depreciated by $31 790 to exchange date in the previous owner’s accounts. Bruce Manufacturing Ltd estimated Machine 4’s useful life and residual value at 3 years and $4580. 10 Oct Traded in Machine 2 for a new machine (Machine 5), that cost $90 740. A trade-in allowance of $40 200 was received and the balance was paid in cash. Freight charges of $280 and installation costs of $1600 were also paid in cash. Bruce Manufacturing Ltd estimated Machine 5’s useful life and residual value at 6 years and $5500. Required A. Prepare journal entries to record the above transactions and events. (Narrations are required.)

Why did the practice of consolidated reporting arise in the United States earlier than in France?

The selling and administrative expense budget of Fenley Corporation is based on the number of units sold, which are budgeted to be 2,500 units in January. The variable selling and administrative expense is $4.40 per unit. The budgeted fixed selling and administrative expense is $35,750 per month, which includes depreciation of $4,000. The remainder of the fixed selling and administrative expense represents current cash flows.

Required:

Prepare the selling and administrative expense budget for January.

(Give the proper answer with theory)

Questions

1. Jones Company is a merchandise company that uses the perpetual inventory method.  The business prepares financial statements on a monthly basis and has the following adjusted trial balance at January 31:

8,000       Cash                                        10,000       Notes payable (all long-term)

11,000     Accounts receivable                   42,600       Owner’s capital, January 1

22,500     Merchandise inventory                4,000        Owner’s withdrawals

34,200     Equipment                                314,700    Sales revenue

7,400       Accumulated depreciation            230,400     Cost of goods sold

5,800       Accounts payable                       71,400      Operating expenses

1,000       Wages payable

1. Prepare a MUTLIPLE STEP income statement for Jones Company IN GOOD FORMAT for January.

2. Prepare a statement of owner’s equity for Jones Company IN GOOD FORMAT for January.

C. Prepare a classified balance sheet for Jones Company IN GOOD FORMAT for January.

2. A business that uses the perpetual inventory method has the following financial data regarding its merchandise inventory for January:

      Beginning inventory                    20 units at $5.00 each       

      January 1:  Purchase                    50 units at $5.50 each

      January 5:  Purchase                    60 units at $6.00 each

      Ending inventory                         35 units

All January sales occurred after January 5.

1. Determine COST OF GOODS SOLD for January under FIFO.
2. Determine COST OF GOODS SOLD for January under LIFO.

Discuss the implication for auditors, clients public and regulations in matters such as: 1. the approach to auditing, 2. Regulations on auditing, 3. Forms of audit reports, 4. Communication of audit matters

Sharp Company manufactures a product for which the following standards have been set:

During March, the company purchased direct materials at a cost of $56,610, all of which were used in the production of 2,875 units of product. In addition, 4,700 direct labor-hours were worked on the product during the month. The cost of this labor time was $37,600. The following variances have been computed for the month:

Required:

1. For direct materials:

a. Compute the actual cost per foot of materials for March.

6.00

b. Compute the price variance and the spending variance.

2. For direct labor:

a. Compute the standard direct labor rate per hour.

b. Compute the standard hours allowed for the month’s production.

c. Compute the standard hours allowed per unit of product.

Case Study: Property and Equipment - Substantive procedures

Your firm is auditing the financial statement of Newthorpe Manufacturing Ltd for the year ended 30 June 2015. You have been assigned to the audit of the company's property, plant and equipment, which includes freehold land and buildings, plant and machinery, fixtures and fittings and motor vehicles.

The freehold land and buildings were purchased 12 years earlier (in July 2003) for $2 million. At the date of purchase, a valuer estimated that both the land and the buildings each had a value of $1 million. Depreciation has been charged since 2003 on the building at 2% per year on cost. At 30 June 2015 the accumulated depreciation is $200,000 before the revaluation.

A qualified valuer who is not an employee of the company, valued the land and buildings at $5 million ($2.9 million for the land and $2.1 million for the buildings) These values will be incorporated into the financial statements as at 30 June 2015.

The partner in charge of the audit is concerned at the large increase in the value of the land and buildings since they were purchased. She has asked you to check the reliability and accuracy of the valuation. she suggest that ASA 620 Using the work of an Auditor's Expert (ISA 620) could help you when carrying out this work.

In addition, you have been asked to verify the existence and completeness of plant and machinery recorded in the company's computerised non-current asset register, which records the description of each non-current asset, the original cost, the depreciation charge and the accumulated depreciation

Required;

1. Describe the audit work your will carry out to check whether the valuer has provided an accurate and independent valuation of the land and buildings

2. Describe the audit work you will carry out to check the existence and completeness of plant and machinery, as recorded in the company's non-current asset register.

O

ld Camp Company manufactures awnings for its own line of tents. The company is currently operating at capacity and has received an offer from one of its suppliers to make the 12,000 awnings it needs for $22 each. Old Camp’s costs to make the awning are $10 in direct materials and $6 in direct labor. Variable manufacturing overhead is 75 percent of direct labor. If Old Camp accepts the offer, $40,000 of fixed manufacturing overhead currently being charged to the awnings will have to be absorbed by other product lines.  

Required:
1. Complete the incremental analysis for the decision to make or buy the awnings in the table provided below.

  

2. Should Old Camp continue to manufacture the awnings or should they purchase the awnings from the supplier?

3. Assuming that the capacity released by purchasing the awnings allowed Old Camp to record a profit of $22,000, should Old Camp continue to manufacture or purchase the awnings?

[The following information applies to the questions displayed below.]

Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows:

The planning budget for March was based on producing and selling 32,000 units. However, during March the company actually produced and sold 37,000 units and incurred the following costs:

1. Purchased 160,000 pounds of raw materials at a cost of $7.40 per pound. All of this material was used in production.

2. Direct laborers worked 67,000 hours at a rate of $17 per hour.

3. Total variable manufacturing overhead for the month was $422,100.

1. What raw materials cost would be included in the company’s planning budget for March?

2. What raw materials cost would be included in the company’s flexible budget for March?

3. What is the materials price variance for March? (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.)

4. What is the materials quantity variance for March? (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.)

Diaz Company incurred the following costs during the year 2020.

Determine the amount of research and development costs that would be disclosed in the financial statements of Diaz company for the year 2020.

Note: Round your answer to the nearest whole dollar.

Hi can you assist me with this. Can you explain each of the similarities and differences in maybe a short paragraph. Thank you so

3) Provide THREE ways in which Governmental entities are similar to For Profit Entities and
THREE ways in which they are different (30 pts )

What arguments can be given that the historical cost framework should be abandoned?

PA11-3 Comparing, Prioritizing Multiple Projects [LO 11-1, 11-2, 11-3, 11-6] Hearne Company has a number of potential capital investments. Because these projects vary in nature, initial investment, and time horizon, management is finding it difficult to compare them. Assume straight line depreciation method is used. Project 1: Retooling Manufacturing Facility This project would require an initial investment of $5,600,000. It would generate $1,000,000 in additional net cash flow each year. The new machinery has a useful life of eight years and a salvage value of $1,180,000. Project 2: Purchase Patent for New Product The patent would cost $3,925,000, which would be fully amortized over five years. Production of this product would generate $785,000 additional annual net income for Hearne. Project 3: Purchase a New Fleet of Delivery Trucks Hearne could purchase 25 new delivery trucks at a cost of $190,000 each. The fleet would have a useful life of 10 years, and each truck would have a salvage value of $6,500. Purchasing the fleet would allow Hearne to expand its customer territory resulting in $950,000 of additional net income per year. Required: 1. Determine each project's accounting rate of return. (Round your answers to 2 decimal places.) 2. Determine each project's payback period. (Round your answers to 2 decimal places.) 3. Using a discount rate of 10 percent, calculate the net present value of each project. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Round your intermediate calculations to 4 decimal places and final answers to 2 decimal places.) 4. Determine the profitability index of each project and prioritize the projects for Hearne. (Round your intermediate calculations to 2 decimal places. Round your final answers to 4 decimal places.)