Make sure to scroll left and right to see full question and please show work. Waterway makes two products, Simple and Complex. As their names suggest, Simple is the more basic product, and Complex comes with all the bells and whistles. The company has always allocated overhead costs to products based on machine hours. Last year, the company implemented an activity-based costing system, and managers determined the following activity pools and rates based on total overhead of $1,592,000:
| Rate | |||
|---|---|---|---|
| Assembly | $1.25 per direct labor hour | ||
| Fabrication | $9.75 per machine hour | ||
| Setups | $18 per batch | ||
| Bonding | $262,400 direct to Complex |
Only the Complex product requires bonding, so all the costs of
bonding should be allocated to Complex. The following data relate
to both products.
| Simple | Complex | |||
|---|---|---|---|---|
| Units produced | 127,000 | 48,000 | ||
| Direct labor hours | 226,000 | 110,000 | ||
| Machine hours | 50,000 | 30,000 | ||
| Batches | 2,200 | 5,000 |
Using the traditional method of allocating overhead costs,
| • | allocate overhead cost to the products. |
| • | show that the overhead assigned to each product sums to the total company overhead. |
| • | determine the overhead cost per unit for each product. |
(Round overhead rate and overhead per unit answers to 2
decimal places, e.g. 15.25.)
| Simple | Complex | Total | ||||
|---|---|---|---|---|---|---|
| Machine hours | Enter a number of hours | Enter a number of hours | ||||
| Overhead rate | $Enter a dollar amount rounded to 2 decimal places | $Enter a dollar amount rounded to 2 decimal places | ||||
| Total overhead to product | $Enter a total amount | $Enter a total amount | $Enter a total amount |
| Simple | Complex | |||
|---|---|---|---|---|
| Total overhead to product | $Enter a dollar amount | $Enter a dollar amount | ||
| Number of units produced | Enter a number of units | Enter a number of units | ||
| Overhead per unit | $Enter a dollar amount per unit rounded to 2 decimal places | $Enter a dollar amount per unit rounded to 2 decimal places |
Using the activity-based costing rates,
| • | allocate overhead cost to the products. |
| • | show that the overhead assigned to each product sums to the total company overhead. |
| • | determine the overhead cost per unit for each product. |
(Round per unit answers to 2 decimal places, e.g.
15.25)
| Simple | Complex | Total | ||||
|---|---|---|---|---|---|---|
| Assembly | $Enter a dollar amount | $Enter a dollar amount | ||||
| Fabrication | Enter a dollar amount | Enter a dollar amount | ||||
| Setups | Enter a dollar amount | Enter a dollar amount | ||||
| Bonding | Enter a dollar amount | Enter a dollar amount | ||||
| Total overhead | $Enter a total amount | $Enter a total amount | $Enter a total amount |
| Simple | Complex | |||
|---|---|---|---|---|
| Total overhead to product | $Enter a dollar amount | $Enter a dollar amount | ||
| Number of units produced | Enter a number of units | Enter a number of units | ||
| Overhead per unit | $Enter a dollar amount per unit rounded to 2 decimal places | $Enter a dollar amount per unit rounded to 2 decimal places |
In: Accounting
Excel Manufacturing, a corporation, hired a private investigator to conduct surveillance of DeJuan, the Chief Financial Officer, because he was suspected of committing corporate espionage. Without DeJuan’s consent, the private investigator approached DeJuan and demanded to be allowed to search him and his cell phone without either a warrant or probable cause. Which of the following does this action violate?
Multiple Choice
The action violates no constitutional amendment.
Fourth Amendment search and seizure.
Fourteenth Amendment substantive due process.
Fourteenth Amendment procedural due process.
In: Accounting
Management bookkeeper/accountant can contribute in following manners towards cost transformaton of an organisation :
-By causing a cost-conscious culture .
-By dealing with the risks inherent in driving cost competitiveness.
-By associating items with profitability .
-By generating greatest value through new items.
-By incorporating sustainability to streamline or optimise profits.
-By understanding cost drivers, cost bookkeeping frameworks and processes.
Explain how this six ways can contribute towards cost transformation in an organisation.
In: Accounting
No need to show working.
Due Co. manufactures two bicycles, the Mountain Bike and the Street Racer, and anticipates producing 8,000 Mountain Bikes and 4,000 Street Racers.
The direct material cost and direct labor cost for each bike are:
|
|
Direct Materials |
Direct Labor |
|
Mountain Bike |
$120 |
$240 |
|
Street Racer |
$60 |
$160 |
Due’s budgeted overhead cost of $2,140,000 is based on the following:
The following activities are needed to manufacture the bikes:
|
Set-up Procedures |
Assembling Stations |
Finishing |
Shipping |
|
|
Mountain Bike |
6,000 |
12,000 |
8,000 |
4,000 |
|
Street Racer |
4,000 |
8,000 |
4,000 |
2,000 |
For Questions 32 – 35, assume Due uses activity-based costing.
In: Accounting
|
Party |
Overview of Responsibilities |
|
Stockholders |
Provide effective oversight through election of board members, through approval of major initiatives (such as buying or selling stock), and through annual reports on management compensation from the board |
|
Board of Directors |
Serve as representatives of stockholders; ensure that the organization is run according to the organization’s charter and that there is proper accountability Specific activities include:
|
|
Management |
Manage the organization effectively; provide accurate and timely accountability to shareholders and other stakeholders Specific activities include:
|
|
Audit Committees of the Board of Directors |
Provide oversight of the internal and external audit function and over the process of preparing the annual financial statements and public reports on internal control Specific activities include:
|
|
Regulators and Standards Setters (PCAOB, SEC, AICPA, FASB, IAASB, IASB) |
Set accounting and auditing standards dictating underlying financial reporting and auditing concepts; set the expectations of audit quality and accounting quality Specific activities include:
|
Discuss
Consider the roles and responsibilities of each of these parties with corporate governance responsibilities. Which party do you think is most responsible for preventing fraud? Which party do you think is most responsible for detecting fraud?
Provide formal discussion.
In: Accounting
Larry Nelson holds 1,000 shares of General Electric common stock. As a shareholder, he has the right to be involved in the election of its directors. These directors are responsible for managing the company and achieving the company’s objectives.
True or False: Larry can invest in another company that is selling class A shares to the public, and class B shares will be retained by company insiders. This will help the founders maintain control in the company.
True
False
Larry also holds 2,000 shares of common stock in a company that only has 20,000 shares outstanding. Currently, the company’s stock is valued at $47.00 per share. The company needs to raise new capital to invest in its future production activities. The company is anticipating issuing 5,000 new shares at a price of $37.60 per share. Larry worries about the value of his investment.
Larry’s current investment in the company is worth $ __________________
. If the company issues its new shares and Larry makes no additional investments in the company, then his investment will be worth $ _______________
.
This scenario is an example of _____________ . Larry could be protected if the firm’s corporate charter includes a _____________ provision.
If Larry exercises the provisions in the corporate charter to protect his stake, his investment value in the firm will become $ _________________
In: Accounting
Houston-based Advanced Electronics manufactures audio speakers for desktop computers. The following data relate to the period just ended when the company produced and sold 40,000 speaker sets:
|
Sales |
$ |
3,360,000 |
|
|
Variable costs |
840,000 |
||
|
Fixed costs |
2,310,000 |
||
Management is considering relocating its manufacturing facilities to northern Mexico to reduce costs. Variable costs are expected to average $20.00 per set; annual fixed costs are anticipated to be $1,986,000. (In the following requirements, ignore income taxes.)
Required:
Req.1
Calculate the company’s current income and determine the level of dollar sales needed to double that figure, assuming that manufacturing operations remain in the United States. (Do not round intermediate calculations and round your final answers to nearest whole dollar.)
|
Req.2
Determine the break-even point in speaker sets if operations are shifted to Mexico. (Do not round intermediate calculationsand round your final answer up to nearest whole number.)
|
||||
Req.3
Assume that management desires to achieve the Mexican break-even point; however, operations will remain in the United States.
a. If variable costs remain constant, by how much must fixed costs change? (Round your intermediate unit calculations to the nearest whole number and round your final answers to the nearest whole dollar.)
b. If fixed costs remain constant, by how much must unit variable cost change? (Round your intermediate unit calculations to the nearest whole number and round your final answer to 2 decimal places.)
|
Req.4
Determine the impact (increase, decrease, or no effect) of the following operating changes.
|
In: Accounting
Foxx Corporation acquired all of Greenburg Company’s outstanding stock on January 1, 2016, for $646,000 cash. Greenburg’s accounting records showed net assets on that date of $497,000, although equipment with a 10-year life was undervalued on the records by $66,000. Any recognized goodwill is considered to have an indefinite life.
Greenburg reports net income in 2016 of $119,000 and $100,500 in 2017. The subsidiary declared dividends of $20,000 in each of these two years.
Account balances for the year ending December 31, 2018, follow. Credit balances are indicated by parentheses.
| Foxx | Greenburg | ||||||
| Revenues | $ | (868,000 | ) | $ | (652,000 | ) | |
| Cost of goods sold | 108,500 | 163,000 | |||||
| Depreciation expense | 370,000 | 406,000 | |||||
| Investment income | (20,000 | ) | 0 | ||||
| Net income | $ | (409,500 | ) | $ | (83,000 | ) | |
| Retained earnings, 1/1/18 | $ | (1,246,000 | ) | $ | (408,000 | ) | |
| Net income | (409,500 | ) | (83,000 | ) | |||
| Dividends declared | 120,000 | 20,000 | |||||
| Retained earnings, 12/31/18 | $ | (1,535,500 | ) | $ | (471,000 | ) | |
| Current assets | $ | 305,000 | $ | 118,000 | |||
| Investment in subsidiary | 646,000 | 0 | |||||
| Equipment (net) | 1,088,000 | 700,000 | |||||
| Buildings (net) | 968,000 | 526,000 | |||||
| Land | 674,000 | 122,000 | |||||
| Total assets | $ | 3,681,000 | $ | 1,466,000 | |||
| Liabilities | $ | (1,245,500 | ) | $ | (695,000 | ) | |
| Common stock | (900,000 | ) | (300,000 | ) | |||
| Retained earnings | (1,535,500 | ) | (471,000 | ) | |||
| Total liabilities and equity | $ | (3,681,000 | ) | $ | (1,466,000 | ) | |
Determine the December 31, 2018, consolidated balance for each of the following accounts:
| Depreciation Expense | Buildings |
| Dividends Declared | Goodwill |
| Revenues | Common Stock |
| Equipment | |
How does the parent's choice of an accounting method for its investment affect the balances computed in requirement (a)?
Which method of accounting for this subsidiary is the parent actually using for internal reporting purposes?
Determine parent's investment income for 2018 under partial equity method and equity method.
What would be Foxx’s balance for retained earnings as of January 1, 2018, if each of the following methods had been in use?
In: Accounting
Comparison of three essential types of businesses in Australia: use the following criteria and organize your comparison in a table:
1) Owner/s of businesses
2) Level of difficulty in setting up the business
3) Life the business (limited or unlimited)
4) Liabilities of owners over the business’s debts
5) Legal status of business
6) Level of difficulty in mobilizing funds
7) Level of difficulty in business transfer.
In: Accounting
Shepherd Corporation is considering acquiring RentCo by exchanging its stock (value of $10 per share) for RentCo's only asset, a tract of land (adjusted basis of $150,000 and no liability). The yearly net rent that RentCo receives on the land is $50,000. Shepherd anticipates that it will receive the same net rent for the land over the next 20 years. At the end of that time, it would sell the land for $400,000. Assume that Shepard uses a 10% discount rate and is in the 25% state and Federal income tax bracket for all years. Determine what type of reorganization is being contemplated by this transaction by answering the questions below.
Round dollar amounts to the nearest dollar and round the number of shares to the nearest whole number.
a. Compute the net (after taxes) yearly cash flow. $_________
b. Compute the NPV of yearly cash flow. $_______
c. Compute the net cash flow from sale of land. $______
d. Compute the NPV of cash flow from sale of land. $_______
e. Compute the NPV of the Rentco stock. $______
f. What is the maximum number of shares that
RentCo shareholders can expect Shepherd to offer for 100% of their
RentCo stock?
________ shares
g. What type of reorganization is this
contemplated transaction?
Either "Type A" or "Type C"
In: Accounting
|
Party |
Overview of Responsibilities |
|
Stockholders |
Provide effective oversight through election of board members, through approval of major initiatives (such as buying or selling stock), and through annual reports on management compensation from the board |
|
Board of Directors |
Serve as representatives of stockholders; ensure that the organization is run according to the organization’s charter and that there is proper accountability Specific activities include:
|
|
Management |
Manage the organization effectively; provide accurate and timely accountability to shareholders and other stakeholders Specific activities include:
|
|
Audit Committees of the Board of Directors |
Provide oversight of the internal and external audit function and over the process of preparing the annual financial statements and public reports on internal control Specific activities include:
|
|
Regulators and Standards Setters (PCAOB, SEC, AICPA, FASB, IAASB, IASB) |
Set accounting and auditing standards dictating underlying financial reporting and auditing concepts; set the expectations of audit quality and accounting quality Specific activities include:
|
Discuss
Consider the roles and responsibilities of each of these parties with corporate governance responsibilities. Which party do you think is most responsible for preventing fraud? Which party do you think is most responsible for detecting fraud?
Provide formal discussion.
In: Accounting
Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the San Jacinto County Courthouse Capital Projects Fund for the year ended June 30, 20X9, given the following information:
1. In June 20X8, a $10,000,000 bond referendum is voted for and approved by the citizens of San Jacinto County for the construction of a new courthouse.
2. On July 1, 20X8, a Capital Projects Fund is established for this project with a transfer of $500,000 from the General Fund.
3. The county commissioners approve another $3,000,000 transfer of General Fund monies previously committed for this project. The transfer order call for $2,000,000 to be sent to the Courthouse Capital Projects Fund to begin construction of the courthouse and $1,000,000 to the Courthouse Debt Service Fund to help satisfy the bond indenture requirements. The finance director completes these transfers on August 1, 20X8.
4. The county signs a contract for $10,000,000 on August 5, 20X8, for construction of the new courthouse.
5. On January 2, 20X9, the county issues the $10,000,000 face value courthouse bonds at 101, net of issue costs of $90,000. Also on this date, the county receives a $2,000,000 bill from the contractor for work completed to date.
6. According to the bond covenants, the county transfers the bond premium (net of bond issuance costs) to the Courthouse Debt Service Fund on January 4, 20X9.
7. On January 31, 20X9, the county pays the contractor's bill from January 2nd, less a 5% retainage.
8. On June 30, 20X9, the county receives $80,000 from the bank for interest on idle cash and a $1,250,000 bill from the contractor for work completed between January 1st and fiscal year end.
In: Accounting
how can a company manage information on specfic
customers more effectively
.
In: Accounting
9-21 Variable and absorption costing, explaining operating-income differences. Nascar Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2017 are as follows:
April May
Unit Data:
Beginning Inventory 0 150
Production 500 400
sales 350 520
Variable Costs
Manufacturing cost per unit produced $10,000 $10,000
Operating cost per unit sold 3000 3000
Fixed Costs
Manufacturing Costs $2,000,000 $2,000,000
Operating Costs 600,000 600,000
9.5-31 Full Alternative Text
The selling price per vehicle is $24,000. The budgeted level of production used to calculate the budgeted fixed manufacturing cost per unit is 500 units. There are no price, efficiency, or spending variances. Any production-volume variance is written off to cost of goods sold in the month in which it occurs.
Prepare April and May 2017 income statements for Nascar Motors
under (a) variable costing and (b) absorption costing.
Prepare a numerical reconciliation and explanation of the
difference between operating income for each month under variable
costing and absorption costing.
In: Accounting
The C corporation tax rate is significantly lower than the top individual marginal tax rate.
True
False
Owners who work for entities taxed as a partnership receive guaranteed payments as compensation. The guaranteed payments are not self-employment income.
True
False
Business income allocations from an S corporation to its shareholders are potentially subject to the 3.8 percent net investment income tax if the shareholders are passive investors in the S corporation.
True
False
C corporations and S corporations are separate taxpaying entities that pay tax on their own income.
True
False
Business income allocations to owners from an LLC that is taxed as a partnership are subject to self-employment tax if the owners are significantly involved in the entity’s business activities.
True
False
An S corporation shareholder who is not a passive investor is allowed to deduct a business loss allocation from the S corporation to the extent of the shareholder’s basis in the stock no matter how large the loss.
True
False
Beginning in 2018, C corporations are no longer subject to double taxation.
True
False
please answer all questions , thanks
In: Accounting