Weston Products manufactures an industrial cleaning compound that goes through three processing departments—Grinding, Mixing, and Cooking. All raw materials are introduced at the start of work in the Grinding Department. The Work in Process T-account for the Grinding Department for May is given below: Work in Process—Grinding Department Inventory, May 1 171,360 Completed and transferred to the Mixing Department ? Materials 405,020 Conversion 175,260 Inventory, May 31 ? The May 1 work in process inventory consisted of 102,000 pounds with $116,280 in materials cost and $55,080 in conversion cost. The May 1 work in process inventory was 100% complete with respect to materials and 30% complete with respect to conversion. During May, 299,000 pounds were started into production. The May 31 inventory consisted of 130,000 pounds that were 100% complete with respect to materials and 60% complete with respect to conversion. The company uses the weighted-average method in its process costing system. Required: 1. Compute the Grinding Department's equivalent units of production for materials and conversion in May. 2. Compute the Grinding Department's costs per equivalent unit for materials and conversion for May. 3. Compute the Grinding Department's cost of ending work in process inventory for materials, conversion, and in total for May. 4. Compute the Grinding Department's cost of units transferred out to the Mixing Department for materials, conversion, and in total for May.

Meir, Benson, and Lau are partners and share income and loss in a 1:4:5 ratio (in percents: Meir, 10%; Benson, 40%; and Lau, 50%). The partnership's capital balances are as follows: Meir, $38,000; Benson, $159,000; and Lau, $203,000. Benson decides to withdraw from the partnership.

2. Assume that Benson does not retire from the partnership described in Part 1. Instead, Rhode is admitted to the partnership on February 1 with a 25% equity. Prepare journal entries to record Rhode’s entry into the partnership under each separate assumption: Rhode invests (a) $133,333; (b) $97,333; and (c) $174,666. .

Record the admission of Rhode with an investment of $97,333 for a 25% interest in the equity.

Record the admission of Rhode with an investment of $174,666 for a 25% interest in the equity.

A U.S. company, G. Marx Co., purchases and receives video games from a Japanese company, Saki Corporation, on October 20, Year 7. The transaction is denominated in yen and calls for Marx to pay Saki 2 million yen on January 15, Year 8. The spot rate for yen is $.01015 at the time of the transaction. The spot rate is $.01005 on October 31, Year 7, Marx's fiscal year end, and $.01030 on January 15, Year 8.

G. Marx Co. has two wholly owned subsidiaries, H. Marx of Canada and C. Marx of France. Functional currencies are the Canadian dollar for H. Marx and the euro for C. Marx. However, C. Marx keeps its books in a currency that is not the functional currency or the reporting currency.

G. Marx also recently disposed of a long-term investment in Z. Marx of Mexico, a consolidated entity whose functional currency was the peso.

Enter the appropriate amounts for the following journal entries recorded by Marx Corporation for its transaction with Saki Corporation.

To prepare each required journal entry:

• Enter the corresponding debit or credit amount in the associated column.
• Round all amounts to the nearest whole number.
• Not all rows in the table might be needed to complete each journal entry.
• If no journal entry is needed, check the “No entry required” box at the top of the table as your respons

journal..v

he cash account for Coastal Bike Co. at October 1, 20Y9, indicated a balance of $32,788. During October, the total cash deposited was $139,699, and checks written totaled $138,679. The bank statement indicated a balance of $42,830 on October 31, 20Y9. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:

The 2018 Annual Reports/Financial Statements for both Air NZ and Auckland Airportare both available in the links below. Answer the questions for both Air NZ and Auckland Airport. All questions only relate to 2018.

Air NZ : https://p-airnz.com/cms/assets/PDFs/Air-NZ-2018-Financial-Results.pdf

AKL airport : https://corporate.aucklandairport.co.nz/-/media/Files/Corporate/Annual-Report-2018/Annual-Report-2018-Financial-Statements.ashx?la=en&hash=3FD590BBFBB78389CD2DEA7EE8402BCAEC4332E9

Carbex, Inc., produces cutlery sets out of high-quality wood and steel. The company makes a Standard set and a Deluxe set and sells them to retail department stores throughout the country. The Standard set sells for $88, and the Deluxe set sells for $103. The variable expenses associated with each set are given below.

The company’s fixed expenses each month are:

Mary Parsons, the financial vice president, watches sales commissions carefully and has noted that they have risen steadily over the last year. For this reason, she was shocked to find that even though sales have increased, profits for the current month—May—are down substantially from April. Sales, in sets, for the last two months are given below:

Required:

1-a. Prepare contribution format income statement for April.

1-b. Prepare contribution format income statement for May.

3-a. Compute the break-even point in dollar sales for April.

3-b. Would the break-even point in May be higher or lower than the break-even point in April?

Neptune Company produces toys and other items for use in beach and resort areas. A small, inflatable toy has come onto the market that the company is anxious to produce and sell. The new toy will sell for $3.10 per unit. Enough capacity exists in the company’s plant to produce 30,500 units of the toy each month. Variable expenses to manufacture and sell one unit would be $1.96, and fixed expenses associated with the toy would total $51,655 per month.

The company's Marketing Department predicts that demand for the new toy will exceed the 30,500 units that the company is able to produce. Additional manufacturing space can be rented from another company at a fixed expense of $2,583 per month. Variable expenses in the rented facility would total $2.17 per unit, due to somewhat less efficient operations than in the main plant.

Required:

1. What is the monthly break-even point for the new toy in unit sales and dollar sales.

2. How many units must be sold each month to attain a target profit of $12,090 per month?

3. If the sales manager receives a bonus of 15 cents for each unit sold in excess of the break-even point, how many units must be sold each month to attain a target profit that equals a 20% return on the monthly investment in fixed expenses?

(For all requirments, Round "per unit" to 2 decimal places, intermediate and final answers to the nearest whole number.)

Question text

Computing Depreciation Expense.
Equipment costing $580,000, with an expected scrap value of $60,000 and an estimated useful life of 5 years, was purchased on January 1, 2012.

Calculate the depreciation expense for years 2012 to 2016 using: (a) the straight-line method and (b) the double-declining-balance method.

Round to the nearest whole number.

The gross estate of Raul, decedent, includes stock in Iris Corporation (E & P of $8,000,000) valued at $6,000,000. At the time of his death, Raul owned 60% of the Iris stock outstanding and he had a basis of $840,000 in the stock. The death taxes and funeral and administration expenses related to Raul’s estate amount to $2,000,000, and the adjusted gross estate is $16,000,000. The remainder of the Iris stock is owned by Monica, Raul’s daughter and sole heir of his estate. What are the tax consequences to Raul’s estate if Iris Corporation distributes $6,000,000 to the estate in redemption of all of its stock in the corporation

Question 1

The banking system plays a crucial role in carrying out monetary policy. Through the credit process within commercial banks, quantities of money are created for the economy.

a) In order to boost economic growth, the central bank of Country Y has injected $500 billion of new money into the banking system. If the required reserve ratio (RR) for bank deposits in Country Y is 20%, compute the maximum increase in money supply that the additional funds can create in the following scenarios:

i. Commercial banks in Country Y lend all their available funds to their loan customers under the current reserves requirement. At the same time, the public does not keep any cash on hand and deposit all their money to banks.

ii. Suppose the public keeps one third of their funds in form of cash and deposit the rest with their banks. In addition, commercial banks hold 5% excess reserves (ER) on top of the required reserve for the deposits they receive.

b )With reference to your answers in (a), explain in detail why a central bank in reality cannot control the exact amount of money in circulation with the practice of monetary policy.

Shoe-production equipment is purchased on January 1, 2020. The relevant data is as follows:

Equipment Cost $10,000

Estimated residual value -1,560

Accounting periods 5 years

Shoe-production equipment is purchased on January 1, 2020. The relevant data is as follows:

Equipment Cost $10,000

Estimated residual value -1,560

Accounting periods 5 years

Units produced 38,000 shoes

first year units produced are : 7000 CAD

first year units produced are : 5000 CAD

first year units produced are : 7000 CAD

first year units produced are : 6600 CAD

first year units produced are : 3000 CAD

1- Calculate the first year depreciation using the three methods usable

2- Calculate the accumulated depreciation using the three methods for the 3rd and 4th year.

Due to erratic sales of its sole product—a high-capacity battery for laptop computers—PEM, Inc., has been experiencing financial difficulty for some time. The company’s contribution format income statement for the most recent month is given below:

Required:

1. Compute the company’s CM ratio and its break-even point in unit sales and dollar sales.

2. The president believes that a $6,200 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will result in an $84,000 increase in monthly sales. If the president is right, what will be the increase (decrease) in the company’s monthly net operating income?

3. Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of $34,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net operating income (loss)?

4. Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would grow sales. The new package would increase packaging costs by 0.80 cents per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4,500?

5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $54,000 each month.

a. Compute the new CM ratio and the new break-even point in unit sales and dollar sales.

b. Assume that the company expects to sell 20,100 units next month. Prepare two contribution format income statements, one assuming that operations are not automated and one assuming that they are. (Show data on a per unit and percentage basis, as well as in total, for each alternative.)

c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,100)?

Kohler Corporation reports the following components of stockholders’ equity on December 31, 2016:

In year 2017, the following transactions affected its stockholders’ equity accounts.

Required:
1. Prepare journal entries to record each of these transactions for 2017.
2. Prepare a statement of retained earnings for the year ended December 31, 2017.
3. Prepare the stockholders' equity section of the company’s balance sheet as of December 31, 2017.

QUESTION 1.
Your company will receive AUD2,000,000 in 90 days. To convert this amount into USD, you contact a bank to sell AUD forward. Here is the information you got:

90-day forward rate: AUD1 = USD0.85

Today spot rate: AUD1 = USD0.90

After 90 days, market spot rate is AUD1 = USD0.92

If you choose to sell forward, how much USD will you receive?

QUESTION 2.
Your company will receive AUD2,000,000 in 90 days. To convert this amount into USD, you contact a bank to sell AUD forward. Here is the information you got:

90-day forward rate: AUD1 = USD0.85

Today spot rate: AUD1 = USD0.90

After 90 days, market spot rate is AUD1 = USD0.92

If you choose to sell forward then

QUESTION 3.
Your company will receive AUD2,000,000 in 90 days. To convert this amount into USD, you contact a bank to sell AUD forward. Here is the information you got:

90-day forward rate: AUD1 = USD0.85

Today spot rate: AUD1 = USD0.90

After 90 days, market spot rate is AUD1 = USD0.92

90-day Forward rate premium/discount is?

QUESTION 4. Your company will receive AUD2,000,000 in 90 days. To convert this amount into USD, you contact a bank to sell AUD forward. Here is the information you got:

90-day forward rate: AUD1 = USD0.85

Today spot rate: AUD1 = USD0.90

After 90 days, market spot rate is AUD1 = USD0.92

During that 90-day period:

The cartel

Consider a town in which only two residents, Hubert and Kate, own wells that produce water safe for drinking. Hubert and Kate can pump and sell as much water as they want at no cost. For them, total revenue equals profit. The following table shows the town's demand schedule for water.

Suppose Hubert and Kate form a cartel and behave as a monopolist. The profit-maximizing price is

per gallon, and the total output is

gallons. As part of their cartel agreement, Hubert and Kate agree to split production equally. Therefore, Hubert's profit is

, and Kate's profit is

.

Suppose that Hubert and Kate have been successfully operating as a cartel. They each charge the monopoly price and sell half of the monopoly quantity. Then one night before going to sleep, Hubert says to himself, "Kate and I aren't the best of friends anyway. If I increase my production by 40 gallons, I can increase my profit even though her profit goes down. I will do that starting tomorrow."

After Hubert implements his new plan, the price of water   to

per gallon. Given Kate and Hubert's production levels, Hubert's profit becomes

and Kate's profit becomes

.

Because Hubert has deviated from the cartel agreement and increased his output of water by 40 gallons, Kate decides that she will also increase her production by 40 gallons.

After Kate increases her production, Hubert's profit becomes

, Kate's profit becomes

, and total profit (the sum of the profits of Hubert and Kate) is now

.

Note that Hubert and Kate started by behaving cooperatively. However, once Hubert decided to cheat, Kate decided to cheat as well. In other words, Kate's output decisions are based on Hubert's actions.

This behavior is an example of?