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

Estimated Income Statements, using Absorption and Variable Costing

Prior to the first month of operations ending October 31 Marshall Inc. estimated the following operating results:

The company is evaluating a proposal to manufacture 27,200 units instead of 24,800 units, thus creating an Inventory, October 31 of 2,400 units. Manufacturing the additional units will not change sales, unit variable factory overhead costs, total fixed factory overhead cost, or total selling and administrative expenses.

a. 1. Prepare an estimated income statement, comparing operating results if 24,800 and 27,200 units are manufactured in the absorption costing format. If an amount box does not require an entry leave it blank or enter “0”.

a. 2. Prepare an estimated income statement, comparing operating results if 24,800 and 27,200 units are manufactured in the variable costing format. If an amount box does not require an entry leave it blank or enter “0”.

Item2

Item 2

Time Remaining 48 minutes 43 seconds

00:48:43

The alphabetical listing below includes all of the adjusted account balances of Battle Creek, Inc. as of December 31, 2018. All account balances are normal.

Required:

1. Prepare the closing entries. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
2. Prepare the post-closing trial balance as of December 31, 2018. (Enter all account balances, including any that may carry a zero-balance.)
3. Prepare the classified balance sheet at December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.)

Bank Reconciliation and Entries

The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $13,015. The bank statement indicated a balance of $15,420 on June 30, 20Y1. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:

1. Checks outstanding totaled $5,550.
2. A deposit of $5,780, representing receipts of June 30, had been made too late to appear on the bank statement.
3. The bank collected $3,010 on a $2,850 note, including interest of $160.
4. A check for $660 returned with the statement had been incorrectly recorded by Pala Medical Co. as $600. The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account.
5. A check drawn for $30 had been erroneously charged by the bank as $300.
6. Bank service charges for June amounted to $45.

Required:

1. Prepare a bank reconciliation.

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.

3. If a balance sheet were prepared for Pala Medical Co. on June 30, 20Y1, what amount should be reported as cash?
$

Income Statements under Absorption Costing and Variable Costing

Joplin Industries Inc. manufactures and sells high-quality sporting goods equipment under its highly recognizable J-Sports logo. The company began operations on May 1 and operated at 100% of capacity (61,600 units) during the first month, creating an ending inventory of 5,600 units. During June, the company produced 56,000 garments during the month but sold 61,600 units at $90 per unit. The June manufacturing costs and selling and administrative expenses were as follows:

a. Prepare an income statement according to the absorption costing concept for June.

b. Prepare an income statement according to the variable costing concept for June.

Anteium Company owes $81,100 on a note payable that is currently due. The note is held by a local bank and is secured by a mortgage lien attached to three acres of land worth $48,500. The land originally cost Anteium $31,500 when acquired several years ago. The only other account balances for this company are Investments of $22,600 (but worth $27,600), Accounts Payable of $22,200, Common Stock of $41,200, and a deficit of $89,400. Anteium is insolvent and attempting to arrange a reorganization so that the business can continue to operate. The reorganization value of the company is $83,500.

View each of the following as an independent situation:

1. On a statement of financial affairs, how would this note be reported? How would the land be shown?

2. Assume that Anteium develops an acceptable reorganization plan. Sixty percent of the common stock is transferred to the bank to settle that particular obligation. A 7 percent, three-year note payable for $5,160 is used to settle the accounts payable. How would Anteium record the reorganization?

3. Assume that Anteium is liquidated. The land and investments are sold for $50,500 and $28,600, respectively. Administrative expenses amount to $13,400. How much will the various parties collect?

Chapter 8: Applying Excel: Exercise (Part 2 of 2)

Requirement 2:

The company has just hired a new marketing manager who insists that unit sales can be dramatically increased by dropping the selling price from $8 to $7. The marketing manager would like to use the following projections in the budget:

a. What are the total expected cash collections for the year under this revised budget?

b. What is the total required production for the year under this revised budget?

c. What is the total cost of raw materials to be purchased for the year under this revised budget?

d. What are the total expected cash disbursements for raw materials for the year under this revised budget?

Saddle Inc. has two types of handbags: standard and custom. The controller has decided to use a plantwide overhead rate based on direct labor costs. The president has heard of activity-based costing and wants to see how the results would differ if this system were used. Two activity cost pools were developed: machining and machine setup. Presented below is information related to the company’s operations.

Total estimated overhead costs are $ 297,000. Overhead cost allocated to the machining activity cost pool is $ 189,000, and $ 108,000 is allocated to the machine setup activity cost pool.

Compute the overhead rate using the traditional (plantwide) approach. (Round answer to 2 decimal places, e.g. 12.25.)

eTextbook and Media

Compute the overhead rates using the activity-based costing approach.

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Determine the difference in allocation between the two approaches.

3) Webb Corporation's trial balance for July 31, the end of its fiscal year, included the following accounts:

Accounts Receivable $35,000

Inventories 50,000 Franchise

35,000 Investments

50,000 Prepaid Insurance

5,000 Note Receivable 90,000

Cash in Bank 8,000

The investment account consists of marketable securities of which management plans to sell half of by December 31. Prepaid insurance is a two year policy that was purchased on July 31. The note receivable is an installment note that will be paid in three equal installments on December 31 of each year.

The amount that should be classified as current assets in the July 31 balance sheet is ________.

A) $150,500

B) $153,000

C) $175,500

D) $210,500

Dusty Jones is 23 years old and has accumulated $4,000 in her self-directed defined contribution pension plan. Each year she contributes $2,000 to the plan, and her employer contributes an equal amount. Dusty thinks she will retire at age 67 and figures she will live to age 81. The plan allows for two types of investments. One offers a 3.5% risk-free real rate of return. The other offers an expected return of 10% and has a standard deviation of 23%. Dusty now has 5% of her money in the risk-free investment and 95% in the risky investment. She plans to continue saving at the same rate and keep the same proportions invested in each of the investments. Her salary will grow at the same rate as inflation. How much can Dusty be sure of having in the safe account at retirement?

A: 37,221

B: 16,423

C: 11,856

D: 21,156

E: 49,219