Describe the fraud risks on Amazon:  (Please be industry specific)

1.Assume that Cane normally produces and sells 60,000 Betas and 80,000 Alphas per year. If Cane discontinues the Beta product line, its sales representatives could increase sales of Alpha by 15,000 units. If Cane discontinues the Beta product line, how much would profits increase or decrease?

2.Assume that Cane expects to produce and sell 80,000 Alphas during the current year. A supplier has offered to manufacture and deliver 80,000 Alphas to Cane for a price of $80 per unit. If Cane buys 80,000 units from the supplier instead of making those units, how much will profits increase or decrease?

3.Assume that Cane expects to produce and sell 50,000 Alphas during the current year. A supplier has offered to manufacture and deliver 50,000 Alphas to Cane for a price of $80 per unit. If Cane buys 50,000 units from the supplier instead of making those units, how much will profits increase or decrease?

4.How many pounds of raw material are needed to make one unit of Alpha and one unit of Beta?

5. What contribution margin per pound of raw material is earned by Alpha and Beta? (Round your answers to 2 decimal places.)

6.Assume that Cane’s customers would buy a maximum of 80,000 units of Alpha and 60,000 units of Beta. Also assume that the company’s raw material available for production is limited to 160,000 pounds. How many units of each product should Cane produce to maximize its profits?

7.Assume that Cane’s customers would buy a maximum of 80,000 units of Alpha and 60,000 units of Beta. Also assume that the company’s raw material available for production is limited to 160,000 pounds. What is the maximum contribution margin Cane Company can earn given the limited quantity of raw materials?

8.Assume that Cane’s customers would buy a maximum of 80,000 units of Alpha and 60,000 units of Beta. Also assume that the company’s raw material available for production is limited to 160,000 pounds. Up to how much should it be willing to pay per pound for additional raw materials? (Round your answer to 2 decimal places.)

What do ASIC look at in relation to training for staff members?

Please Do Not Copy And Paste From Another Source.

The following selected accounts and their current balances appear in the ledger of Clairemont Co. for the fiscal year ended May 31, 20Y2:

Provide pricing methods (at least 3) and costing methods(at least 3) that can be used by service industries in the event management activities such as annual dinner of the company or training seminar.

Finley designs and manufactures displays used in mobile devices. Serious flooding throughout the region affected ​Finleys' facilities. Inventory was completely​ ruined, and the​ company's computer​ system, including all accounting​ records, was destroyed.

Before the disaster recovery specialists clean the​ buildings,

Heather Bailey​, the company​ controller, is anxious to salvage whatever records she can to support an insurance claim for the destroyed inventory. She is standing in what is left of the Accounting Department wtih Tad Myers​, the cost accountant. "I didn't know mud could smell so​ bad,"Tad says.​ "What should I be looking​ for?" ​"Don't worry about beginning inventory​ numbers," responds Heather. ​"We'll get them from last​ year's annual report. We need​ first-quarter cost​ data." "I was working on the​ first-quarter results just before the storm​ hit," Tad says.​ "Look, my​ report's still in my desk drawer. But all I can make out is that for the first​ quarter, material purchases were $524,000 and that direct​ labor, manufacturing overhead​ (other than indirect​ materials), and total manufacturing costs to account for were $545,000​; $218,000​; and $1,508,000​, respectively.​ Wait, and cost of goods available for sale was $1,615,000​." ​"Great," says Heather. ​"I remember that sales for the period were approximately $1.6 million. Given our gross profit of 15​%, ​that's all you should​ need." Tad is not sure about​ that, but decides to see what he can do with this information.

the beginning inventory numbers are as follows:

He remembers several schedules he learned in college that may help him get started.

Requirement

Determine the ending inventories of raw​ materials, work in​ process, and finished goods. Assume that Raw Materials Inventory contains only direct materials.

Start by determining the ending inventory of raw materials by calculating the direct materials used.

​Next, determine the ending inventory of work in process by calculating the cost of goods manufactured.

​Finally, determine the ending inventory of finished goods by calculating the cost of goods manufactured.

Birch PaperBirch Paper

Co. produces the paper used by wallpaper manufacturers.

BirchBirch​'s

​four-stage process includes​ mixing, cooking,​ rolling, and cutting.

On

MarchMarch

​1, the Mixing Department had

550550

rolls of paper in process. During

MarchMarch​,

the Mixing Department completed the mixing process for those

550

rolls and also started and completed the mixing process for an additional

3,850

rolls of paper. The department started but did not finish the mixing process for an additional

500

​rolls, which were

20 %

complete with respect to both direct materials and conversion work at the end of

MarchMarch.

Direct materials and conversion costs are incurred evenly throughout the mixing process.

The Mixing Department compiled the following data for March​:

Prepare a production cost report for the Mixing Department for

MarchMarch.

The company uses the​ weighted-average method. ​(Round all cost per unit amounts to the nearest cent and all other amounts to the nearest whole dollar. Abbreviation​ used: EUP​ = equivalent units of​ production.)

Requirement 2. Journalize all transactions affecting the​ company's mixing process during

MarchMarch.

Assume labor costs are accrued and not yet paid.

Begin with a summary journal entry to record the assignment of direct​ materials, direct​ labor, and the allocation of manufacturing overhead to the Mixing Department. ​(Prepare a single compound journal entry. Record debits​ first, then credits. Exclude explanations from any journal​ entries.)

Prepare the journal entry to record the cost of the units completed and transferred out of the Mixing Department.

1. ABC Inc., began the year with 10,000 units in stock but finished with 5,000 units. It produced 45,000 units for the period. Its selling price is $12 per unit, variable manufacturing cost is $5 per unit, and variable selling is $3 per unit. Fixed manufacturing and selling costs are $100,000 and $77,000 respectively.

The firm notes that variable cost per unit (both mfg and SGA) was the same this and the prior year.

What is the income under variable costing?

2. Refer to the prior problem. The firm informs you that inventory values under absorption costing decreased by $33,000. Compute (Income as reported under variable costing - Income as reported under absorption costing), noting that it is change in FMOH between the opening and closing inventory accounts.

3. ABC corporation informs you that is CM per unit of its product is $6 per unit and that this value has stayed constant for several years. Fixed manufacturing and selling costs are $100,000 and $75,000 respectively. The firm informs you that the change in inventory values (a decrease) was $22,000 under absorption costing and was $10,000 under variable costing. What is the income reported under absorption costing, if the firm sold 50,000 units? Assume FIFO cost flow.

4. Juno Corp began the year with 1,000 units in inventory, produced 10,000 units and sold 10,400 units. The units in opening (ending) inventory had FMOH of $10 per unit ($12 per unit). Compute (income under variable costing - income under absorption costing) if the firm uses LIFO to value inventories.

1. When an auditor obtains the A/R aging and sends letters to the customers listed asking them to verify the amounts, what type of audit evidence is being obtained?

2. A(n) _____ is a detailed instruction that specifies audit evidence to be obtained.

3. An audit plan consists of a detailed list of audit procedures to be performed.

True False

4. The main purpose of gathering audit evidence is to _____.

5. If an auditor determines that internal controls are ineffective, they will most likely take which of the following actions?

Missing data can be derived, and journal entries constructed, from information in the accounts.

The following schedule shows the amounts (in thousands) related to expenditures that a city welfare department debited and credited to the indicated accounts during a year (not necessarily the year‐end balances), excluding closing entries. The department records its budget, encumbers all its expenditures, and initially vouchers all payments. Some information is missing. You are to determine the missing data and construct all entries (in summary form), excluding closing entries, that the department made during the year.

hanex limited is considering investing $50,000/- in a new machine with an expected life life of 5 years. the machine will have no scrap value at the end of five years.it is expected that 2000 units will be sold each year at a selling price of $3.00 per unit, variables production cots are expected to be $1.65 per unit, while incremental fixed cost, mainly the wages of maintenance engineer are expected to be $10.000/- per year. Hanex limited uses a discount rate of 12% for investment appraisal purposes and expects investment projects to recover their initial investment within two years.

required

a. calculate and comment on the payback period of the project

b. calculate and comment on the net present value of the project

c. identify the limitations of the net present value techniques when applied generally to investment appraisal

d. explain why risk an uncertainty should be considered in the investment appraisal

Costs of Different Customer Classes

Kaune Food Products Company manufactures canned mixed nuts with an average manufacturing cost of $51 per case (a case contains 24 cans of nuts). Kaune sold 152,000 cases last year to the following three classes of customer:

The supermarkets require special labeling on each can costing $0.03 per can. They order through electronic data interchange (EDI), which costs Kaune about $60,000 annually in operating expenses and depreciation. Kaune delivers the nuts to the stores and stocks them on the shelves. This distribution costs $40,000 per year.

The small grocers order in smaller lots that require special picking and packing in the factory; the special handling adds $20 to the cost of each case sold. Sales commissions to the independent jobbers who sell Kaune products to the grocers average 6 percent of sales. Bad debts expense amounts to 7 percent of sales.

Convenience stores also require special handling that costs $29 per case. In addition, Kaune is required to co-pay advertising costs with the convenience stores at a cost of $15,000 per year. Frequent stops are made to each convenience store by Kaune delivery trucks at a cost of $30,000 per year.

Required:

EKPN Company prepared the following data in its static budget based on 150,000 machine hours: Direct Materials $ 450,000 Direct Labour 225,000 Variable Overhead 1,125,000 Fixed Overhead 2,100,000

Actual Results: Machine Hours 160,000 hours Direct Materials $475,000 Direct Labour 245,000 Variable Overhead 1,150,000 Fixed Overhead 2,110,000


(i). What was the budgeted variable costs per machine hour for variable overhead, rounded to the nearest whole cent? a) $7.03/machine hour b) $7.50/machine hour c) $19.53/machine hour d) $20.83/machine hour


(ii). What is the budgeted Direct Labour cost at the actual level of activity? a) $245,000 b) $240,000 c) $210,938 d) $20,000


(iii). What is the budgeted Fixed Overhead at the actual level of activity? a) $2,100,000 b) $2,110,000 c) $2,240,000 d) $3,260,000


(iv). What was the difference between the actual and budgeted Direct Material costs at the actual level of activity? a) $25,000 unfavourable b) $25,000 favourable c) $5,000 unfavourable d) $5,000 favourable


(v). What possible reason could explain the difference between the actual fixed overhead costs and the budgeted fixed overhead costs? a) EKPN Company’s actual machine hours were greater than the budgeted amount. b) EKPN Company’s actual machine hours were less than the budgeted amount. c) EKPN Company spent more on fixed costs than it expected. d) EKPN Company spent less on fixed costs than expected.


Q#2: 20 Marks

Nick’s Novelties, Inc. is considering the purchase of electronic pinball machines to place in game arcades. The machines would cost a total of $300,000, have an eight-year useful life, and have a total salvage value of $20,000. The company estimated that annual revenues and expenses associated with the machines would be as follows:

Revenues $200,000 Operating expenses: Commissions to game arcades $100,000 Insurance 7,000 Depreciation 35,000 Maintenance 18,000 160,000 Net operating income $ 40,000 Required: 1. Assume that Nick’s Novelties, Inc. will not purchase new equipment unless it provides a payback period of five years of less. Will the company purchase the pinball machines?

2. If Nick’s Novelties, Inc. has a discount rate of 18%, what is the NPV of this investment?






















EKPN Company prepared the following data in its static budget based on 150,000 machine hours: Direct Materials $ 450,000 Direct Labour 225,000 Variable Overhead 1,125,000 Fixed Overhead 2,100,000

Actual Results: Machine Hours 160,000 hours Direct Materials $475,000 Direct Labour 245,000 Variable Overhead 1,150,000 Fixed Overhead 2,110,000


(i). What was the budgeted variable costs per machine hour for variable overhead, rounded to the nearest whole cent? a) $7.03/machine hour b) $7.50/machine hour c) $19.53/machine hour d) $20.83/machine hour


(ii). What is the budgeted Direct Labour cost at the actual level of activity? a) $245,000 b) $240,000 c) $210,938 d) $20,000


(iii). What is the budgeted Fixed Overhead at the actual level of activity? a) $2,100,000 b) $2,110,000 c) $2,240,000 d) $3,260,000


(iv). What was the difference between the actual and budgeted Direct Material costs at the actual level of activity? a) $25,000 unfavourable b) $25,000 favourable c) $5,000 unfavourable d) $5,000 favourable


(v). What possible reason could explain the difference between the actual fixed overhead costs and the budgeted fixed overhead costs? a) EKPN Company’s actual machine hours were greater than the budgeted amount. b) EKPN Company’s actual machine hours were less than the budgeted amount. c) EKPN Company spent more on fixed costs than it expected. d) EKPN Company spent less on fixed costs than expected.


Q#2: 20 Marks

Nick’s Novelties, Inc. is considering the purchase of electronic pinball machines to place in game arcades. The machines would cost a total of $300,000, have an eight-year useful life, and have a total salvage value of $20,000. The company estimated that annual revenues and expenses associated with the machines would be as follows:

Revenues $200,000 Operating expenses: Commissions to game arcades $100,000 Insurance 7,000 Depreciation 35,000 Maintenance 18,000 160,000 Net operating income $ 40,000 Required: 1. Assume that Nick’s Novelties, Inc. will not purchase new equipment unless it provides a payback period of five years of less. Will the company purchase the pinball machines?

2. If Nick’s Novelties, Inc. has a discount rate of 18%, what is the NPV of this investment?

Explain the uses and limitations of a cash flow statement