Andretti Company has a single product called a Dak. The company normally produces and sells 85,000 Daks each year at a selling price of $56 per unit. The company’s unit costs at this level of activity are given below:

A number of questions relating to the production and sale of Daks follow. Each question is independent.

Required:

1-a. Assume that Andretti Company has sufficient capacity to produce 114,750 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its unit sales by 35% above the present 85,000 units each year if it were willing to increase the fixed selling expenses by $120,000. What is the financial advantage (disadvantage) of investing an additional $120,000 in fixed selling expenses?

1-b. Would the additional investment be justified?

2. Assume again that Andretti Company has sufficient capacity to produce 114,750 Daks each year. A customer in a foreign market wants to purchase 29,750 Daks. If Andretti accepts this order it would have to pay import duties on the Daks of $3.70per unit and an additional $17,850 for permits and licenses. The only selling costs that would be associated with the order would be $1.50 per unit shipping cost. What is the break-even price per unit on this order?

3. The company has 700 Daks on hand that have some irregularities and are therefore considered to be "seconds." Due to the irregularities, it will be impossible to sell these units at the normal price through regular distribution channels. What is the unit cost figure that is relevant for setting a minimum selling price?

4. Due to a strike in its supplier’s plant, Andretti Company is unable to purchase more material for the production of Daks. The strike is expected to last for two months. Andretti Company has enough material on hand to operate at 25% of normal levels for the two-month period. As an alternative, Andretti could close its plant down entirely for the two months. If the plant were closed, fixed manufacturing overhead costs would continue at 35% of their normal level during the two-month period and the fixed selling expenses would be reduced by 20% during the two-month period.

a. How much total contribution margin will Andretti forgo if it closes the plant for two months?

b. How much total fixed cost will the company avoid if it closes the plant for two months?

c. What is the financial advantage (disadvantage) of closing the plant for the two-month period?

d. Should Andretti close the plant for two months?

5. An outside manufacturer has offered to produce 85,000 Daks and ship them directly to Andretti’s customers. If Andretti Company accepts this offer, the facilities that it uses to produce Daks would be idle; however, fixed manufacturing overhead costs would be reduced by 30%. Because the outside manufacturer would pay for all shipping costs, the variable selling expenses would be only two-thirds of their present amount. What is Andretti’s avoidable cost per unit that it should compare to the price quoted by the outside manufacturer?

Sterling Products Company uses a job- order costing system. The company incurred the following manufacturing costs during March:

a. Purchased materials on credit,$58,800.

b. Issued materials to production as follows: direct,$51,000; indirect,$111,300.

c. Incurred factory wages,$59,400.

d. Allocated factory wages to production as follows: direct,$45,000;indirect,$14,900.

e. incurred factory overhead costs on account,$2,500.

f. Recognized other factory overhead costs as follows: depreciation of equipment,$4,00; depreciation of building,$5,000;expired insurance,$600; accrued property taxes, $1,800.

g. Applied factory overhead to production,$32,500.

h. completed jobs costing $125,500.

i.    Sold finished goods costing $118,900 to various customer; billed customers for $161,704

( make two entries ).

Required:

Record these summary transactions in general journal form.

Andrew works at a public company called TNN Manufacturing Ltd. He has observed that the company is trying to expand its operation in the market over the past one year. The management has heavily invested in plant and equipment over this period. Considering the high growth potential of the business, Andrew is planning to invest in this company by purchasing shares. He consulted with this friend Peter regarding this plan. After reviewing TNN Manufacturing’s balance sheet for past two years, Peter commented, "While I understand that this company is focusing on growth, they have a taken a risky approach to achieve the growth". Do you agree with Peter's comments? Justify your answer. TNN Manufacturing Ltd Comparative Balance Sheet As at 30th June 2019 and 2020 2019 2020 ASSETS ($) ($) Current Assets Cash at Bank 23,600 6,200 Accounts Receivable 41,800 51,100 Inventory 32,000 40,400 Other current Assets 6,400 5,900 Total Current Assets 103,800 103,600 Non-current Assets Land and Building 54,000 54,000 Plant and Equipment 62,000 190,000 Furniture 5,800 5,300 Long-term investment 9,200 9,000 Total Non-current Assets 131,000 258,300 Total Assets 234,800 361,900 LIABILITIES Current liabilities Accounts Payable 52,400 52,100 Total current-liabilities 52,400 52,100 Non-current liabilities Long-term debt 82,400 208,800 Total non-current liabilities 82,400 208,800 Total Liabilities 134,800 260,900 EQUITY Share Capital 100,000 101,000 Total Equity 100,000 101,000 Total Liability and Equity 234,800 361,900

Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs for pricing and other purposes. The proprietor of the company believes that costs are driven primarily by the size of customer lawns, the size of customer garden beds, the distance to travel to customers, and the number of customers. In addition, the costs of maintaining garden beds depends on whether the beds are low maintenance beds (mainly ordinary trees and shrubs) or high maintenance beds (mainly flowers and exotic plants). Accordingly, the company uses the five activity cost pools listed below:

The company already has completed its first stage allocations of costs and has summarized its annual costs and activity as follows:

Required:

Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places.)

Caring for lawn (per sq ft of laawn)

Caring for garden bed-low maintenance (per sq ft of low maintenance bed)

Caring for garden bed-high maintenance (per sq ft of high maintenance bed)

Travel to jobs (per mile)

Customer billing service (per customer)

Groleau Corporation has an activity-based costing system with three activity cost pools--Processing, Setting Up, and Other. The company's overhead costs, which consist of factory utilities and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Costs in the Processing cost pool are assigned to products based on machine-hours (MHs) and costs in the Setting Up cost pool are assigned to products based on the number of batches. Costs in the Other cost pool are not assigned to products. Data concerning the two products and the company's costs and activity-based costing system appear below:

Distribution of Resource Consumption Across Activity Cost Pools

Required:

a. Assign overhead costs to activity cost pools using activity-based costing.

b. Calculate activity rates for each activity cost pool using activity-based costing.

c. Determine the amount of overhead cost that would be assigned to each product using activity-based costing.

d. Determine the product margins for each product using activity-based costing.

Rand Medical manufactures lithotripters. Lithotripsy uses shock waves instead of surgery to eliminate kidney stones. Physicians’ Leasing purchased a lithotripter from Rand for $2,300,000 and leased it to Mid-South Urologists Group, Inc., on January 1, 2021. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)

1. How should this lease be classified by Mid-South Urologists Group and by Physicians' Leasing.

2.Prepare appropriate entries for Mid-South Urologists Group from the beginning of the lease through the second rental payment on April 1, 2021. Adjusting entries are recorded at the end of each fiscal year (December 31). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars and not in the millions of dollars. Round your answers to nearest whole dollars.

Journal entry worksheet

3..Prepare appropriate entries for Mid-South Urologists Group from the beginning of the lease through the second rental payment on April 1, 2021. Adjusting entries are recorded at the end of each fiscal year (December 31). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars and not in the millions of dollars. Round your answers to nearest whole dollars.)

Journal entry worksheet

4.Prepare appropriate entries for Mid-South Urologists Group from the beginning of the lease through the second rental payment on April 1, 2021. Adjusting entries are recorded at the end of each fiscal year (December 31). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars and not in the millions of dollars. Round your answers to nearest whole dollars.

For florida list the types of utilities that are/are not required to offer a net metering tariff also explain the accounting process for net excess generation and how financial compensation, if any, is calculated.

Leases are one of the most common means by which companies obtain the use of long term operating assets. Lets look at the airline industry and the effect of leasing. What you believe are the benefits if any as airlines decide to lease versus buying assets? Why or why not?

Percentage Method

The percentage method is used when an employee's wages exceed the Publication 15 tables provided. The process for this method is to take the earnings, subtract the allowances the employee declared on their W-4 which results in the wages upon which taxes will be computed.

Wage Example's sister-in-law Perfect is married and claims 3 allowances. She earns $4,140.75 biweekly.

1. 	Description			Calculation
   1.	Determine the amount of gross wages. $4,140.75, rounded to the nearest dollar.			$4,141.00
   2.	Determine the allowancea amount based on the payroll period.	$161.50
   3.	Multiply the allowance value by the employee allowances claimed.	× 3		(484.50)
   4.	Subtract allowances from gross pay, referred to as excess wages.			$3,656.50
   5.	Using the percentage_table, identify the correct bracket. Wages starting at $3,490 but not over $6,931.	$3,656.50 (3,490.00)
   6.	Compute the excess wage over the starting wage for this bracket.	$166.50
   7.	Multiply the excess by the tax rate in the table (22%)	x .22		$36.63
   8.	Add the bracket minimum tax, $349.40			349.40
   9.	Add the two amounts together which equals Perfect's total withholding.			$386.03
   	a Refer to the Table of Allowance Values for 2019. Perfect is paid biweekly which corresponds to a biweekly allowance of $161.50 per allowance claimed.

? Medal Points: Complete the following. The Percentage Method must be used for a single employee, paid weekly, whose wages exceeds $ on the Form W-4 .

? Tackle It

Serena Williams is married, claims 4 allowances, and is paid $11,640.25 on a monthly basis.

Note: Enter ALL values as positive numbers and round amounts to two decimal places unless instructed otherwise.

4. Use the following information to perform the calculations in (a) – (c) below: Sales $101,000 Administrative salaries 15,000 Indirect labor 12,000 Direct labor 35,000 Marketing expense 18,000 Materials purchased 25,000 Production machine depreciation 5,500 Materials inventory, Jan 1, 2014 35,000 Materials inventory, Dec 31, 2014 48,000 Finished goods inventory, Jan 1, 2014 19,000 Finished goods inventory, Dec 31, 2014 26,000 Work in process, Jan 1, 2014 18,000 Work in process, Dec 31, 2014 15,000 Required: a) Calculate Total Manufacturing Costs for 2014 b) Calculate Cost of Goods Manufactured for 2014 c) Calculate Cost of Goods Sold for 2014

Your company uses a process cost system. Products are processed first by Department A, then by Department B before being transferred to the Finished Goods warehouse. Shown below is the cost information for Department B during the month of April: Cost of units transferred in $100,000 Manufacturing costs added in Department B: Direct Materials $30,000 Direct Labor $5,000 Manufacturing Overhead $15,000 Total costs added in Department B $50,000 Total charged to Department B-Sept: $150,000 During April, $140,000 in finished goods were transferred to the warehouse from Department B. Required: Prepare the following entries: a) The transfer of production from Department A to Department B b) The manufacturing costs incurred by Department B c) The transfer of completed units from Department B to the Finished Goods Warehouse. 3

Your has the following production data for April: • Beginning work in process, 0 units • Units transferred out, 20,000 units • Units in ending work in process, 5,000, which are 20% complete for conversion costs. • Materials are added ONLY at the beginning of the process. Required: Compute the equivalent units of production for both materials and conversion costs.

Bank Reconciliation and Entries The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $9,335. The bank statement indicated a balance of $10,710 on June 30, 20Y1. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: Checks outstanding totaled $3,860. A deposit of $4,020, representing receipts of June 30, had been made too late to appear on the bank statement. The bank collected $2,090 on a $1,980 note, including interest of $110. A check for $550 returned with the statement had been incorrectly recorded by Pala Medical Co. as $500. The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account. A check drawn for $50 had been erroneously charged by the bank as $500. Bank service charges for June amounted to $55. Required: 1. Prepare a bank reconciliation. Pala Medical Co. Bank Reconciliation June 30, 20Y1 Cash balance according to bank statement $ Adjustments: $ Total adjustments Adjusted balance $ Cash balance according to company's records $ Adjustments: $ Total adjustments Adjusted balance $ 2. Journalize the necessary entries

(a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. For a compound transaction, if an amount box does not require an entry, leave it blank. a. 20Y1 June 30 b. June 30 3. If a balance sheet were prepared for Pala Medical Co. on June 30, 20Y1, what amount should be reported as cash? $ PreviousNext

Andretti Company has a single product called a Dak. The company normally produces and sells 88,000 Daks each year at a selling price of $62 per unit. The company’s unit costs at this level of activity are given below:

A number of questions relating to the production and sale of Daks follow. Each question is independent.

Required:

1-a. Assume that Andretti Company has sufficient capacity to produce 118,800 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its unit sales by 35% above the present 88,000 units each year if it were willing to increase the fixed selling expenses by $110,000. What is the financial advantage (disadvantage) of investing an additional $110,000 in fixed selling expenses?

1-b. Would the additional investment be justified?

2. Assume again that Andretti Company has sufficient capacity to produce 118,800 Daks each year. A customer in a foreign market wants to purchase 30,800 Daks. If Andretti accepts this order it would have to pay import duties on the Daks of $2.70 per unit and an additional $21,560 for permits and licenses. The only selling costs that would be associated with the order would be $2.00 per unit shipping cost. What is the break-even price per unit on this order?

3. The company has 800 Daks on hand that have some irregularities and are therefore considered to be "seconds." Due to the irregularities, it will be impossible to sell these units at the normal price through regular distribution channels. What is the unit cost figure that is relevant for setting a minimum selling price?

4. Due to a strike in its supplier’s plant, Andretti Company is unable to purchase more material for the production of Daks. The strike is expected to last for two months. Andretti Company has enough material on hand to operate at 25% of normal levels for the two-month period. As an alternative, Andretti could close its plant down entirely for the two months. If the plant were closed, fixed manufacturing overhead costs would continue at 30% of their normal level during the two-month period and the fixed selling expenses would be reduced by 20% during the two-month period.

a. How much total contribution margin will Andretti forgo if it closes the plant for two months?

b. How much total fixed cost will the company avoid if it closes the plant for two months?

c. What is the financial advantage (disadvantage) of closing the plant for the two-month period?

d. Should Andretti close the plant for two months?

5. An outside manufacturer has offered to produce 88,000 Daks and ship them directly to Andretti’s customers. If Andretti Company accepts this offer, the facilities that it uses to produce Daks would be idle; however, fixed manufacturing overhead costs would be reduced by 30%. Because the outside manufacturer would pay for all shipping costs, the variable selling expenses would be only two-thirds of their present amount. What is Andretti’s avoidable cost per unit that it should compare to the price quoted by the outside manufacturer?

1. Triple bottom line accounting ?

can lower the quality of a company's performance

provides less financial information than single bottom line accounting

is widely used in public sector accounting.

No answer text provided.

2. The profitability of a company is likely to decrease when goals in such areas as ethical sourcing, recycling, diversity, and philanthropy are set.

True

False