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?

How is information technology changing the way farmers run their business?

Pesto Company posesses 80 percent of Salerno Company's outstanding voting stock. Pesto uses the initial value method to account for this investment. On January 1, 2014, Pesto sold 9 percent bonds payable with a 10 million dollar face value (maturing in 20 years) on the open market at a premium of 600,000. On January 1 2017, Salerno acquired 40 percent of these same bonds from an outside party at 96.6 percent of face value. Both companies use the straight line method of amortization. For 2018 consolidation what adjustment should be made to Pesto's beginning Retained earnings as a result of this bond acquisition? Please show step by step calculations

Journalize the following transaction:

Factory wages allocated: direct labor, $82,160; indirect labor $15,620

Debit for $

Debit    for $

Credit    for $

Cornerstone Exercise 7-18 (Algorithmic)
Acquisition Cost

Cox Company recently purchased a machine by paying $13,600 cash and signing a 6-month, 10% note for $10,000. In addition to the purchase price, Cox incurred the following costs related to the machine: freight charges, $720; interest charges, $500; special foundation for machine, $400; installation costs, $1,100.

Required: Determine the cost of the machine. ($25820 was wrong.)

Exercise 7-59 (Algorithmic)
Disposal of Tangible Capital Asset

Pacifica Manufacturing retired a computerized metal stamping machine on December 31, 2018. Pacifica sold the machine to another company and did not replace it. The following data are available for the machine:

The machine was sold for $182,000 cash. Pacifica uses the straight-line method of depreciation.

Required:

1. Prepare the journal entry to record depreciation expense for 2018.

2. Compute accumulated depreciation at December 31, 2018. $

3. Prepare the journal entry to record the sale of the machine. For those boxes in which no entry is required, leave the box blank.

Riverbed Company sells one product. Presented below is information for January for Riverbed Company.

Jan. 1       Inventory       111   units at $5 each
4       Sale       90   units at $8 each
11       Purchase       159   units at $6 each
13       Sale       130   units at $9 each
20       Purchase       149   units at $7 each
27       Sale       85   units at $11 each

Riverbed uses the FIFO cost flow assumption. All purchases and sales are on account.
      
Assume Riverbed uses a periodic system. Prepare all necessary journal entries, including the end-of-month closing entry to record cost of goods sold. A physical count indicates that the ending inventory for January is 114 units. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date
Account Titles and Explanation
Debit
Credit
Entry field with correct answer
Entry field with correct answer
Accounts Receivable
Entry field with correct answer
720
Entry field with correct answer
Entry field with correct answer
Sales Revenue
Entry field with correct answer
Entry field with correct answer
720
Entry field with correct answer
Entry field with correct answer
Purchases
Entry field with correct answer
954
Entry field with correct answer
Entry field with correct answer
Accounts Payable
Entry field with correct answer
Entry field with correct answer
954
Entry field with correct answer
Entry field with correct answer
Accounts Receivable
Entry field with correct answer
1170
Entry field with correct answer
Entry field with correct answer
Sales Revenue
Entry field with correct answer
Entry field with correct answer
1170
Entry field with correct answer
Entry field with correct answer
Purchases
Entry field with correct answer
1043
Entry field with correct answer
Entry field with correct answer
Accounts Payable
Entry field with correct answer
Entry field with correct answer
1043
Entry field with correct answer
Entry field with correct answer
Accounts Receivable
Entry field with correct answer
935
Entry field with correct answer
Entry field with correct answer
Sales Revenue
Entry field with correct answer
Entry field with correct answer
935
Jan. 31
Entry field with correct answer
Inventory
Entry field with correct answer
798
Entry field with correct answer
Entry field with correct answer
Cost of Goods Sold
Entry field with correct answer
1754
Entry field with correct answer
Entry field with correct answer
Purchases
Entry field with correct answer
Entry field with correct answer
1997
Entry field with correct answer
Inventory
Entry field with correct answer
Entry field with correct answer
555

SHOW LIST OF ACCOUNTS
SHOW SOLUTION
SHOW ANSWER
LINK TO TEXT

Incorrect answer.   Your answer is incorrect. Try again.
      
Compute gross profit using the periodic system.

Gross profit      
$Entry field with incorrect answer
1031

Partially correct answer.   Your answer is partially correct. Try again.
      
Assume Riverbed uses a perpetual system. Prepare all necessary journal entries. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date
Account Titles and Explanation
Debit
Credit
Entry field with correct answer
Entry field with correct answer
Accounts Receivable
Entry field with correct answer
720
Entry field with correct answer
Entry field with correct answer
Sales Revenue
Entry field with correct answer
Entry field with correct answer
720
(To record the sale)
Entry field with correct answer
Cost of Goods Sold
Entry field with incorrect answer
360
Entry field with correct answer
Entry field with correct answer
Inventory
Entry field with correct answer
Entry field with incorrect answer
360
(To record the cost of inventory)
Entry field with correct answer
Entry field with correct answer
Inventory
Entry field with correct answer
954
Entry field with correct answer
Entry field with correct answer
Accounts Payable
Entry field with correct answer
Entry field with correct answer
954
Entry field with correct answer
Entry field with correct answer
Accounts Receivable
Entry field with correct answer
1170
Entry field with correct answer
Entry field with correct answer
Sales Revenue
Entry field with correct answer
Entry field with correct answer
1170
(To record the sale)
Entry field with correct answer
Cost of Goods Sold
Entry field with incorrect answer
Entry field with correct answer
Entry field with correct answer
Inventory
Entry field with correct answer
Entry field with incorrect answer
(To record the cost of inventory)
Entry field with correct answer
Entry field with correct answer
Inventory
Entry field with correct answer
1043
Entry field with correct answer
Entry field with correct answer
Accounts Payable
Entry field with correct answer
Entry field with correct answer
1043
Entry field with correct answer
Entry field with correct answer
Accounts Receivable
Entry field with correct answer
935
Entry field with correct answer
Entry field with correct answer
Sales Revenue
Entry field with correct answer
Entry field with correct answer
935
(To record the sale)
Entry field with correct answer
Cost of Goods Sold
Entry field with incorrect answer
805
Entry field with correct answer
Entry field with correct answer
Inventory
Entry field with correct answer
Entry field with incorrect answer
805
(To record the cost of inventory)

Incorrect answer.   Your answer is incorrect. Try again.
      
Compute gross profit using the perpetual system.

Gross profit      
$Entry field with incorrect answer

Using information from these web sites, along with other resources, prepare a report that addresses the following issues for your selected country: (1) compare and contrast the corporate governance principles of your selected country with the United States, (2) identify the relevant corporate governance parties and their roles, (3) describe recent challenges related to the corporate governance for your selected country, and (4) list and describe recent corporate governance activities in your selected country.

Exercise 7.10 Preparing a schedule of accounts receivable. LO 7-5

Post the entries in the general journal below to the Accounts Receivable account in the general ledger and to the appropriate accounts in the accounts receivable ledger for Calderone Company.

Assume the following account balances at January 1, 2019:

1. Prepare a schedule of accounts receivable for Calderone Company at January 31, 2019.
2. Should the total of your accounts receivable schedule agree with the balance of the Accounts Receivable account in the general ledger at January 31, 2019?

The Research Paper (at least 8 pages) is to be written on a 12 font, using Times New Roman, double spaced, with a one inch margin, and follow APA format. All research papers are to be submitted by BlackBoard and will be submitted to Safe Assign. The required format follows:

BERNIE MADOFF PONZI SCHEME

Introduction Background

information on Bernie Madoff

Detailed summary on Ponzi Scheme

Restitution to Defrauded Investors

Present situation of Defrauded Investors

Ethics and finance

References

QUESTION 1
The company ABC calculated the cost of converting product A to $ 8 per unit. What would happen to the conversion cost for product A if all other factors remain the same but the cycle time increases?

a-The cost per unit would increase.

b-The cost per unit would decrease

c-The cost per unit will remain the same since the cycle time does not affect the conversion costs

QUESTION 2
Your supervisor has asked you to indicate that many more units were produced than they really were, so the cost per unit will be lower.

a-You must do it. After all, it's not like you're changing the total costs

b-You should not do it. You should report this to your supervisor's boss. The general expense is distributed in units; The more units you produce, the less each unit will cost.

c-You should do it. General expenses will not affect the unit cost of a product

QUESTION 3

You manage a subdivision of your company and would like to buy raw materials that have a discount that has not been budgeted. You have discussed this purchase with your manager and have been asked not to buy these materials because you will need cash for other purchases of the company in other departments. You should:

a-Buy the materials because they will save your company money in the long term given that they have a discount.

b-Do not buy the materials as it violates company policies and directives

c-Find another job since your manager is not doing the best for your division

QUESTION 4

1. The IMA Standards of Ethical Conduct include a competency standard, which requires the management accountant to:

a-Discuss with subordinates their responsibilities regarding the disclosure of information about the firm.

b-Report the information, whether favorable or unfavorable.

c-Develop your professional competence continuously.

Tipton company manufactures shirts. During June Tipton made 1200 shirts but had budgeted production at 1400 shirts.

Tipton gathered the following additional data:

13. Calculate the variable overhead cost variance.

Select the formula, then enter the amounts and compute the cost variance for variable overhead (VOH) and identify whether the variance is favorable (F) or unfavorable (U).

14. Calculate the variable overhead efficiency variance.

Select the formula, then enter the amounts and compute the efficiency variance for variable overhead and identify whether the variance is favorable (F) or unfavorable (U).

15. Calculate the total variable overhead variance

16. Calculate the fixed overhead cost variance

Select the formula, then enter the amounts and compute the cost variance for fixed overhead (FOH) and identify whether the variance is favorable (F) or unfavorable (U).

17. Calculate the fixed overhead volume variance

First, select the formula, then enter the amounts and compute the fixed overhead allocated to production. (Abbreviations used: SQ = standard quantity, AO = actual output.)

Now, select the formula, then enter the amounts and compute the fixed overhead volume variance and identify whether the variance is favorable (F) or unfavorable (U).

18. Calculate the total fixed overhead variance.

Slick Corporation is a small producer of synthetic motor oil. During May, the company produced 5,000 cases of lubricant. Each case contains 12 quarts of synthetic oil. To achieve this level of production, Slick purchased and used 16,500 gallons of direct materials at a cost of $20,134. It also incurred average direct labor costs of $15 per hour for the 3,927 hours worked in May by its production personnel. Manufacturing overhead for the month totaled $9,069, of which $2,200 was considered fixed. Slick's standard cost information for each case of synthetic motor oil is as follows.

Required:

a. Compute the materials price and quantity variances.

b. Compute the labor rate and efficiency variances.

c. Compute the manufacturing overhead spending and volume variances.

d. Prepare the journal entries to:

1. Charge materials (at standard) to Work in Process.

2. Charge direct labor (at standard) to Work in Process.

3. Charge manufacturing overhead (at standard) to Work in Process.

4. Transfer the cost of the 5,000 cases of synthetic motor oil produced in May to Finished Goods.

5. Close any over- or underapplied overhead to cost of goods sold.

Crossland Construction’s design/build department allows their clients (owners) to select the design and construction team based on their combined experience and track-record. Design/build firms typically have a cash flow problem since they tend to be paid in lump sums when projects are completed or hit milestones. However, their expenses, such as payroll, must be paid regularly. So, such firms need bank lines of credit to finance their initial costs, but in the past year, lines of credit were difficult to negotiate. The data file Crossland Construction contains month-end cash balances for the past 16 months.

a) Plot the data as a time-series graph. Fit a linear line to the data. Discuss what the graph implies concerning the relationship between cash balance and the time variable, month.
b) Fit a linear trend model to the data. Compute the coefficient of determination. Discuss the appropriateness of the linear trend model. What are the strengths and weaknesses of the model?
c) Referring to part b), compute the MAD and MSE for the 16 data points.

d) Plot the data as a time-series graph. Fit a polynomial line to the data. Discuss what the graph implies concerning the relationship between cash balance and the time variable, month.
e) Use the t2 transformation approach and recompute the linear model using the transformed time variable. Discuss whether this model appears to provide a better fit than did the model without the transformation. Compare the coefficients of determination for the two models. Which model seems to be superior, using the coefficient of determination as the criterion?
f) Referring to part e), compute the MAD and MSE for the 16 data values. Discuss how these compare to those that were computed in part c), prior to transformation. Do the measures of fit (R2, MSE, MAD) agree on the best model to use for forecasting purposes?

g) Use the linear trend model (without transformation) for the first 15 months and provide a cash balance forecast for month 16. Then use the transformation model for the first 15 months and provide a cash balance forecast for month 16. Now, compare the accuracy of the forecasts with and without the transformation. Which of the two forecast models would you prefer? Explain your answer.

Department G had 2,040 units 25% completed at the beginning of the period, 12,500 units were completed during the period, 1,700 units were 20% completed at the end of the period, and the following manufacturing costs debited to the departmental work in process account during the period: Work in process, beginning of period $34,900 Costs added during period: Direct materials (12,160 units at $9) 109,440 Direct labor 72,000 Factory overhead 24,000 All direct materials are placed in process at the beginning of production and the first-in, first-out method of inventory costing is used. What is the total cost of 2,040 units of beginning inventory which were completed during the period (round unit cost calculations to four decimal places and round your final answer to the nearest dollar)? a. $34,900 b. $48,512 c. $44,430 d. $46,812

“All experienced auditors would design exactly the same audit program for a particular audit engagement.” Do you agree? Explain. Remember to complete all parts of the problems. Do not forget to show the necessary steps and explain how you attained that outcome.