French Press Coffee Inc. (HFC) processes and distributes a variety of coffees. HFC buys coffee beans from around the world and roasts, blends, and packages them for resale. HFC sells one-pound bags of coffee throughout a series of gourmet shops. the company has low direct labor costs but very high factory overhead.

Data for the 2018 budget includes factory overhead of $2,393,500, which is currently being allocated based on direct labor cost. Budgeted direct labor is $100000.

The budgeted direct costs for a one pound bag of the two most popular coffee blends are as follows:

The controller believed the current costing system generates misleading information. She has developed the following details:

Total Budgeted cost- $2,392,500

Additional information:

Required: 1. Assuming manufacturing overhead is allocated based on direct labor costs, calculate the cost per unit of Presque isle blend and mentor headlands blend.

2. Assuming the company uses Activity based costing, calculate the cost per unit of Presque Isle Blend and Mentor Headlands Blend.

3. Calculate Gross Profit for each method of costing.

Frank is going to pursue additional financing from the local bank. The bank will require some insight into how Frank's business will be successful and sustainable.

Prepare a short write up (approximately 1 page) explaining to the bank why your (Frank's) business will be viable. Submission could include (but are not limited to) location, time of year, target consumer, pricing, anticipated sales volume, and what makes your hot dogs special.

Your write-up should ask for an amount of cash from the bank that covers the assets you could not buy, as listed in the prompt (and remember there was a $50K equity infusion already), and should give some buffer for some additional cash to keep on hand.

Prepare DRAFT estimated financial statements for the bank to consider.  

The financial statements are going to be basic and will build on your fundamental knowledge from the first three chapters of the book. You will provide

1. A balance sheet that includes the assets discussed in the announcement only, as well as equity (the amount invested which there are no plans to repay - from the announcement), and the liabilities (amounts expected to be repaid in cash to the bank). While we're not that far into debt/equity, the primary difference is whether the Company is expected to repay in cash.

You can use the discussion as finalized in the announcement for the assets, liabilities, and equity you will expect to see on the balance sheet. The write up to the bank should be professional and request an amount of money which is sensible based upon the needs of the business, with some cash buffer to have cash on hand. Please see earlier discussions and announcements.

Jerrison Company operates a wholesale hardware business. The following balance sheet accounts and balances are available for Jerrison at December 31, 2019.

Required:

1. Prepare a classified balance sheet for Jerrison at December 31, 2019.

2.Compute Jerrison's working capital and current ratio at December 31, 2019. Round the current ratio answer to two decimal places.

A Belgium subsidiary's beginning and ending trial balances appear below:

Exchange rates ($/€) are:

The subsidiary was acquired at the beginning of the year. Its sales, inventory purchases, and out-of-pocket selling and administrative expenses occurred evenly during the year. Equipment was purchased for €10,000 when the exchange rate was $1.23. Depreciation for the year includes €200 related to the equipment purchased during the year. The ending inventory was purchased at the end of the year, and the beginning inventory was purchased at the end of the previous year.

If the subsidiary's functional currency is the euro, what is the translation gain or loss for the year?

You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash. Since you are well trained in budgeting, you have decided to prepare a master budget for the upcoming second quarter. To this end, you have worked with accounting and other areas to gather the information assembled below.

The company sells many styles of earrings, but all are sold for the same price—$16 per pair. Actual sales of earrings for the last three months and budgeted sales for the next six months follow (in pairs of earrings):

The concentration of sales before and during May is due to Mother’s Day. Sufficient inventory should be on hand at the end of each month to supply 40% of the earrings sold in the following month.

Suppliers are paid $5.00 for a pair of earrings. One-half of a month’s purchases is paid for in the month of purchase; the other half is paid for in the following month. All sales are on credit. 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:

Insurance is paid on an annual basis, in November of each year.

The company plans to purchase $21,000 in new equipment during May and $50,000 in new equipment during June; both purchases will be for cash. The company declares dividends of $22,500 each quarter, payable in the first month of the following quarter.

The company’s balance sheet as of March 31 is given below:

The company maintains a minimum cash balance of $60,000. 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 in increments of $1,000 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. At the end of the quarter, the company would pay the bank all of the accumulated interest on the loan and as much of the loan as possible (in increments of $1,000), while still retaining at least $60,000 in cash.

Required:

Prepare a master budget for the three-month period ending June 30. Include the following detailed schedules:

1. a. A sales budget, by month and in total.

    b. A schedule of expected cash collections, by month and in total.

    c. A merchandise purchases budget in units and in dollars. Show the budget by month and in total.

    d. A schedule of expected cash disbursements for merchandise purchases, by month and in total.

2. A cash budget. Show the budget by month and in total. Determine any borrowing that would be needed to maintain the minimum cash balance of $60,000.

3. A budgeted income statement for the three-month period ending June 30. Use the contribution approach.

4. A budgeted balance sheet as of June 30.

Problem 1-24 Different Cost Classifications for Different Purposes [LO1-1, LO1-2, LO1-3, LO1-4, LO1-5] Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month: Direct materials $ 83,000 Direct labor $ 42,000 Variable manufacturing overhead $ 20,600 Fixed manufacturing overhead 32,200 Total manufacturing overhead $ 52,800 Variable selling expense $ 14,800 Fixed selling expense 23,600 Total selling expense $ 38,400 Variable administrative expense $ 5,400 Fixed administrative expense 27,800 Total administrative expense $ 33,200 Required: 1. With respect to cost classifications for preparing financial statements: a. What is the total product cost? b. What is the total period cost? 2. With respect to cost classifications for assigning costs to cost objects: a. What is total direct manufacturing cost? b. What is the total indirect manufacturing cost? 3. With respect to cost classifications for manufacturers: a. What is the total manufacturing cost? b. What is the total nonmanufacturing cost? c. What is the total conversion cost and prime cost? 4. With respect to cost classifications for predicting cost behavior: a. What is the total variable manufacturing cost? b. What is the total fixed cost for the company as a whole? c. What is the variable cost per unit produced and sold? 5. With respect to cost classifications for decision making: a. If Dozier had produced 1,001 units instead of 1,000 units, how much incremental manufacturing cost would it have incurred to make the additional unit?

Crystal Displays Inc. recently began production of a new product, flat panel displays, which required the investment of $1,500,000 in assets. The costs of producing and selling 5,000 units of flat panel displays are estimated as follows:

Crystal Displays Inc. is currently considering establishing a selling price for flat panel displays. The president of Crystal Displays has decided to use the cost-plus approach to product pricing and has indicated that the displays must earn a 10% return on invested assets.

1. Determine the amount of desired profit from the production and sale of flat panel displays.

2. Assuming that the product cost method is used, determine (a) the cost amount per unit, (b) the markup percentage, and (c) the selling price of flat panel displays. Round your markup percentage and selling price to two decimal places.

3. (Appendix) Assuming that the total cost method is used, determine (a) the cost amount per unit, (b) the markup percentage, and (c) the selling price of flat panel displays. Round your markup percentage and selling price to two decimal places.

6a. Prepare a differential analysis of the proposed sale to Maple Leaf Visual Inc. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter “0”. A colon (:) will automatically appear if required.

Emmar Co. purchased a machine on January 1, 2013 at a cost of 240000. The machine had been estimated eight year life with no residual value. Emmar uses straight line depreciation. At december 31, 2016. Emmar estimated that the machine would have only two more years of remaining life with no residual value. For 2016, Emmar would report delectation expense of

(a) Comment your finds from the above ratios.

(b) What impact would borrowing an additional $20,000 to buy more equipment have on each of the ratios in (a) above, assuming that no changes are expected on the income statement and balance sheet? Comment on your findings.

You have worked as a staff auditor for two and one-half years and have mastered your job. You will likely be promoted to a senior position after this busy season. Your current senior was promoted about a year ago. He appreciates your competence and rarely interferes with you. As long as he can report good performance to his manager on things she wants, he is satisfied. The manager has been in her position for three years. She is focused on making sure audits run smoothly and is good at this. She is not as strong on the softer skills. Although she is approachable, her attention span can be short if what you are saying does not interest her. You are aware that she expects her teams to perform excellently during this busy season and she hopes to be promoted to senior manager as a result, bringing her closer to her goal of making partner early.

1. Determine the main potential ethical dilemmas. Next, use the seven (7) steps in the ethical decision-making framework to recommend one (1) course of action you would take in order to avoid the ethical dilemmas. Provide a rationale to support your recommendation.

2. based on your recommendation in Part I, suggest one (1) strategy that would support you making the right decision without undermining the manager’s confidence in your problem-solving ability in a difficult situation. Provide a rationale to support your response.

TR20-9 Basic and Diluted EPS (LO 20-2, 20-3)

Farmhill Ltd. had 1,400,300 common shares outstanding on 1 January 20X6, the beginning of its 20X6 fiscal year. During the year, on 1 May, the company issued 520,000 preferred shares convertible into common shares on a 1-for-1 basis. These preferred shares have a $0.75 annual cumulative dividend. The investors must convert the shares to common shares by 30 April 20X9. During the year, there were no conversions and the dividends were declared and paid on 30 November. The company reported net profit of $2,900,800 and total comprehensive income of $2,250,600 for the year ended 31 December 20X6.

Required:
Calculate the company’s basic and diluted EPS for 20X6.

(Business Management)

Using this assignment prompt below, you will determine what two action to take as a team. Choose people to lay off and save money so that you are on budget.

A brief background about the situation. You each are members of the executive team. Recently, your organization has been experiencing no growth. As a matter of fact, you've been losing money. You have 20 employees. Your team is currently on track to post a negative gain for the 3rd quarter of the year. Your team of 20 employees does not include the executive team (which makes $450,000). You have 1 receptionist ($35,000), 1 office manager ($65,000), 5 consultants (averaging about $78,000), 3 sales consultants (averaging $90,000), 1 marketer ($55,000), 1 web designer ($84,000), a graphic designer ($72,000), 1 accounts payable (38,000), 1 accounts receivable (37,000), 2 IT specialist ( averaging $62,000) and an IT manager ($92,000), an HR manager ($75,000), and a facilities manager ($65,000). You have enough money in the budget ($1,250,000)to pay only 12-15 of those employees based off of your current projects. You may get another project but you won't know if you won the contract for 2 months. If you do get the project, it would start a month after that date and you would have to hire additional staff.

The following facts relate to Waterway Corporation.

Compute income taxes payable for 2017. (Round answer to the nearest dollar amount, e.g. $1,525.)

eTextbook and Media

List of Accounts

Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to the nearest dollar amount, e.g. $1,525.)

eTextbook and Media

List of Accounts

Prepare the income tax expense section of the income statement for 2017, beginning with the line “Income before income taxes.” (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Morningside Technologies Inc. uses flexible budgets that are based on the following data:

Prepare a flexible selling and administrative expenses budget for April for sales volumes of $90,000, $115,000, and $135,000. Enter all amounts as positive numbers.

8. Exercise 15-12 Securities transactions; equity method LO P4

Listed below are a few events and transactions of Kodax Company.

2017

2018

Prepare journal entries to record the above transactions and events of Kodax Company. (Do not round intermediate calculations and round your final answers to the nearest dollar amount.)