Departures from Acquisition Cost Determine the proper total inventory value for each of the following items in Packer Company’s ending inventory:

1. Packer has 60 model X3 cameras in stock. The cameras cost $260 each, but their year-end replacement cost is only $240. Packer has been selling the cameras for $310, but competitors are now selling them for $280. Packer plans to match the selling price at $280. Packer’s normal gross profit on cameras is 35 percent.
2. Packer has 550 rolls of film that are past the expiration date since film is now a slow moving item. The film cost $1.90 each and normally sells for $3.90. New replacement film still costs $1.90. Packer has put the expired film on clearance and is selling it for $1.40 per roll. There are no related selling costs.
3. Packer has four computers in stock that have been used as demonstration models. These computers cost $500 and normally sell for $650. Because they are used, Packer is selling them for $450 each. Expected selling costs are $60 per computer. New models of the computer (on order Z) will cost Packer $520 and will be priced to sell at $690.

Laker Company reported the following January purchases and sales data for its only product.

The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 280 units, where 250 are from the January 30 purchase, 5 are from the January 20 purchase, and 25 are from beginning inventory.

Required:
1. Complete the table to determine the cost assigned to ending inventory and cost of goods sold using specific identification.
2. Determine the cost assigned to ending inventory and to cost of goods sold using weighted average.
3. Determine the cost assigned to ending inventory and to cost of goods sold using FIFO.
4. Determine the cost assigned to ending inventory and to cost of goods sold using LIFO.

1. Aging of Receivables Schedule

   The A claim against the customer created by selling merchandise or services on credit.accounts receivable clerk for Evers Industries prepared the following partially completed aging of receivables schedule as of the end of business on July 31:
   

   			Not		Days Past Due
   			Past								Over
   Customer	Balance		Due		1-30		31-60		61-90		90
   Acme Industries Inc.	3,000		3,000
   Alliance Company	4,500				4,500
   Zollinger Company	5,000						5,000
   Subtotals	1,050,000		600,000		220,000		115,000		85,000		30,000

   The following accounts were unintentionally omitted from the aging schedule and not included in the preceding subtotals:
   

   Customer	Balance		Due Date
   Boyd Industries	$36,000		April 7
   Hodges Company	11,500		May 29
   Kent Creek Inc.	6,600		June 8
   Lockwood Company	7,400		August 10
   Van Epps Company	13,000		July 2

   a. Determine the number of days past due for each of the preceding accounts as of July 31. If an account is not past due, enter 0.

   Customer	Due Date	Number of Days Past Due
   Boyd Industries	April 7	fill in the blank 7a2c9ffdffa2fd7_1 days
   Hodges Company	May 29	fill in the blank 7a2c9ffdffa2fd7_2 days
   Kent Creek Inc.	June 8	fill in the blank 7a2c9ffdffa2fd7_3 days
   Lockwood Company	August 10	fill in the blank 7a2c9ffdffa2fd7_4 days
   Van Epps Company	July 2	fill in the blank 7a2c9ffdffa2fd7_5 days

   Feedback

   b. Complete the aging of receivables schedule by adding the omitted accounts to the bottom of the schedule and updating the totals. If an amount box does not require an entry, leave it blank.

   Evers Industries
   Aging of Receivables Schedule
   July 31
   Customer	Balance	Not Past Due	Days Past Due 1-30	Days Past Due 31-60	Days Past Due 61-90	Days Past Due Over 90
   Acme Industries Inc.	$3,000	$3,000	$fill in the blank 2a6315fec00afc1_1	$fill in the blank 2a6315fec00afc1_2	$fill in the blank 2a6315fec00afc1_3	$fill in the blank 2a6315fec00afc1_4
   Alliance Company	4,500	fill in the blank 2a6315fec00afc1_5	4,500	fill in the blank 2a6315fec00afc1_6	fill in the blank 2a6315fec00afc1_7	fill in the blank 2a6315fec00afc1_8
   Zollinger Company	5,000	fill in the blank 2a6315fec00afc1_9	fill in the blank 2a6315fec00afc1_10	5,000	fill in the blank 2a6315fec00afc1_11	fill in the blank 2a6315fec00afc1_12
   Subtotals	1,050,000	600,000	220,000	115,000	85,000	30,000
   Boyd Industries	fill in the blank 2a6315fec00afc1_13	fill in the blank 2a6315fec00afc1_14	fill in the blank 2a6315fec00afc1_15	fill in the blank 2a6315fec00afc1_16	fill in the blank 2a6315fec00afc1_17	fill in the blank 2a6315fec00afc1_18
   Hodges Company	fill in the blank 2a6315fec00afc1_19	fill in the blank 2a6315fec00afc1_20	fill in the blank 2a6315fec00afc1_21	fill in the blank 2a6315fec00afc1_22	fill in the blank 2a6315fec00afc1_23	fill in the blank 2a6315fec00afc1_24
   Kent Creek Inc.	fill in the blank 2a6315fec00afc1_25	fill in the blank 2a6315fec00afc1_26	fill in the blank 2a6315fec00afc1_27	fill in the blank 2a6315fec00afc1_28	fill in the blank 2a6315fec00afc1_29	fill in the blank 2a6315fec00afc1_30
   Lockwood Company	fill in the blank 2a6315fec00afc1_31	fill in the blank 2a6315fec00afc1_32	fill in the blank 2a6315fec00afc1_33	fill in the blank 2a6315fec00afc1_34	fill in the blank 2a6315fec00afc1_35	fill in the blank 2a6315fec00afc1_36
   Van Epps Company	fill in the blank 2a6315fec00afc1_37	fill in the blank 2a6315fec00afc1_38	fill in the blank 2a6315fec00afc1_39	fill in the blank 2a6315fec00afc1_40	fill in the blank 2a6315fec00afc1_41	fill in the blank 2a6315fec00afc1_42
   Totals	$fill in the blank 2a6315fec00afc1_43	$fill in the blank 2a6315fec00afc1_44	$fill in the blank 2a6315fec00afc1_45	$fill in the blank 2a6315fec00afc1_46	$fill in the blank 2a6315fec00afc1_47	$fill in the blank 2a6315fec00afc1_48

The Matsui Lubricants plant uses the FIFO method to account for its work-in-process inventories. The accounting records show the following information for a particular day: Beginning WIP inventory Direct materials $ 951 Conversion costs 452 Current period costs Direct materials 14,690 Conversion costs 11,928 Quantity information is obtained from the manufacturing records and includes the following: Beginning inventory 400 units (60% complete as to materials, 55% complete as to conversion) Current period units started 5,200 units Ending inventory 1,400 units (40% complete as to materials, 20% complete as to conversion)

(1) Compute the equivalent units for the materials and conversion cost calculations.

(2) Compute the cost per equivalent unit for direct materials and for conversion costs using the FIFO method. (Round your answers to 2 decimal places.)

(3)Compute the cost of goods transferred out and the ending inventory using the FIFO method. (Do not round intermediate calculations.)

what expressions enable a CPA to build a defense should the audit wind up in the courtroom? do you see anything wrong with these expressions from an ethical point of view

A partially completed pension spreadsheet showing the relationships among the elements that constitute Carney, Inc.’s defined benefit pension plan follows. At the end of 2018, Carney revised its pension formula and incurred a prior service cost of $100 million. At the end of 2019, the pension formula was amended again, creating an additional prior service cost of $200 million. At the beginning of 2020, $400 million prior service cost was incurred. At the beginning of 2021, $300 million prior service cost was incurred. In 2018 - 2021, the actuary’s discount rate remained 10%, and the average remaining service life of the active employee group remained 10 years. The expected rate of return on assets was 10% in 2019, and increased by 1% each year.

2019 spreadsheet

Fill in the blanks for the 2020 pension spreadsheet

High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation:

Management is anxious to assess the profitability of the new camp cot during the month of May.

Required:

1. Assume that the company uses absorption costing.

a. Determine the unit product cost.

b. Prepare an income statement for May.

2. Assume that the company uses variable costing.

a. Determine the unit product cost.

b. Prepare a contribution format income statement for May.

On December 31, 2015, Martin Corp invested in Marlin’s 5-year, $200,000 bond with a 5% interest rate for $191,575. The bond pays semiannual interest on June 30th and December 31st. The fair values of the bonds at the end of 2016~2018 are $194,500, $194,200, and $195,750. Martin sold its investment in Marlin’s bond on July 1, 2019 at 98 ½ (i.e. selling price is = 98.5% of the face value). Please answer all following questions using Excel Template.

C. Assuming the bonds are classified as held-to-maturity investments,

• Prepare the journal entries on December 31, 2015

• Prepare the journal entries related to the bond on December 31, 2016.

• Prepare the journal entries related to the bond on December 31, 2018.

• Prepare the journal entries related to the bond on July 1 2019.

D. Assuming the bonds are classified as AFS investment, prepare the journal entries on aforementioned dates.

E. Assuming the bonds are classified as Trading investment, prepare the journal entries on aforementioned dates.

Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2 reduction in the selling price. The company’s present selling price is $99 per unit, and variable expenses are $69 per unit. Fixed expenses are $834,300 per year. The present annual sales volume (at the $99 selling price) is 25,600 units.

Required:

1. What is the present yearly net operating income or loss?

2. What is the present break-even point in unit sales and in dollar sales?

3. Assuming that the marketing studies are correct, what is the maximum annual profit that the company can earn? At how many units and at what selling price per unit would the company generate this profit?

4. What would be the break-even point in unit sales and in dollar sales using the selling price you determined in (3) above (e.g., the selling price at the level of maximum profits)?

Please Answer the following:

1.Kenneth Clark just received a cash gift from his grandfather. He plans to invest in a five-year bond issued by Pharoah Corp. that pays an annual coupon rate of 5.5 percent. If the current market rate is 7.00 percent, what is the maximum amount Kenneth should be willing to pay for this bond? (Round answer to 2 decimal places, e.g. 15.25.)

Kenneth Should Pay ?

2.Oriole, Inc., has issued a three-year bond that pays a coupon rate of 6.9 percent. Coupon payments are made semiannually. Given the market rate of interest of 4.8 percent, what is the market value of the bond? (Round answer to 2 decimal places, e.g. 15.25.)

The Market Value is?

3.Maria Miller is interested in buying a five-year zero coupon bond with a face value of $1,000. She understands that the market interest rate for similar investments is 10.6 percent. Assume annual coupon payments. What is the current value of this bond? (Round answer to 2 decimal places, e.g. 15.25.)

Current Value of Bond ?

4.Pharoah Real Estate Company management is planning to fund a development project by issuing 10-year zero coupon bonds with a face value of $1,000. Assuming semiannual compounding, what will be the price of these bonds if the appropriate discount rate is 10.0 percent? (Round answer to 2 decimal places, e.g. 15.25.)

Price OF Bond ?

5.Steven Garcia bought 10-year, 11.7 percent coupon bonds issued by the U.S. Treasury three years ago at $906.82. If he sells these bonds, for which he paid the face value of $1,000, at the current price of $836.58, what is his realized yield on the bonds? Assume similar coupon-paying bonds make annual coupon payments. (Round intermediate calculations to 5 decimal places, e.g. 1.25145 and final answer to 2 decimal places, e.g. 15.25%.)

​​​​​​​Realised rate of return ....%

Question 3

Assiniboine Company has three employees who each earn $3,000 (monthly) and are paid on the 2^nd of each month (for the month just ended). The following payroll register for March (of the current year) has been prepared. Explanations are optional.

REQUIRED: Using the partial Chart of Accounts at the top of the next page,

1. Prepare the regular payroll journal entry on March 31^st to accrue the payroll for the month.

2. Prepare the journal entry to accrue the company’s costs (contributions) resulting from the previous entry.

3. Assiniboine matches the employee’s contribution to the medical insurance plan and accrues vacation pay at 4%. Prepare a journal entry to accrue these fringe benefits.

Journalize the following three cheques:

4. On April 3^nd, a cheque was issued to pay the employees.

5. On April 15^th, a cheque was issued, payable to the Receiver General, to pay for March’s mandatory deductions.

6. A cheque was issued on April 21^st to ABC Insurance in payment of the employee medical premiums for the month of March.

(a)

(b)

(c)

(d)

(e)

(f)

Partial Chart of Accounts:

Cash

CPP Payable

EI Payable

Employees’ Income Tax Payable

Estimated Vacation Pay Liability

Medical Insurance Payable

Salaries Payable

Benefits Expense

CPP Expense

EI Expense

Office Salaries Expense

Sales Salaries Expense

Pablo Company calculates the cost for an equivalent unit of production using process costing.

Required:

1. Compute the cost per equivalent unit for both the weighted-average and FIFO methods. (Round your answers to 3 decimal places.)

Weighted Average Cost per EU FIFO Cost Per EU

Direct Materials

Conversion

Total cost

[The following information applies to the questions displayed below.] The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations: Jan. 20 Purchased 600 units @ $ 7 = $ 4,200 Apr. 21 Purchased 400 units @ $ 9 = 3,600 July 25 Purchased 480 units @ $ 12 = 5,760 Sept. 19 Purchased 290 units @ $ 14 = 4,060 During the year, The Shirt Shop sold 1,410 T-shirts for $23 each. c. Compute the difference in gross margin between the FIFO and LIFO cost flow assumptions.

Product Costing and Decision Analysis for a Service Company

Blue Star Airline provides passenger airline service, using small jets. The airline connects four major cities: Charlotte, Pittsburgh, Detroit, and San Francisco. The company expects to fly 170,000 miles during a month. The following costs are budgeted for a month:

Blue Star management wishes to assign these costs to individual flights in order to gauge the profitability of its service offerings. The following activity bases were identified with the budgeted costs:

The size of the company's ground operation in each city is determined by the size of the workforce. The following monthly data are available from corporate records for each terminal operation:

Three recent representative flights have been selected for the profitability study. Their characteristics are as follows:

Required:

1. Determine the fuel, crew, and depreciation cost per mile flown.
$ per mile

2. Determine the cost per arrival or departure by terminal city.

3. Use the information in (1) and (2) to construct a profitability report for the three flights. Each flight has a single arrival and departure to its origin and destination city pairs.