Marilyn Helm Retailers is attempting to decide on a location for a new retail outlet. At the​ moment, the firm has three​ alternatives: stay where it is but enlarge the​ facility; locate along the main street in nearby Newbury​; or locate in a new shopping mall in Hyde Park.

The company has selected the four factors listed in the following table as the basis for evaluation and has assigned weights as​ shown:

​a) Based on the given​ information, the best location for Marilyn Helm Retailers is to open the new retail outlet in _____, with a total weighted score of_____​(Enter your response rounded to two decimal​ places.)

​b) A new subway station is scheduled to open across the street from the present location in about a​ month, so its third factor score should be raised to 75. Then, the best location for Marilyn Helm Retailers is to open the new retail outlet in ______, with a total weighted score of ____.(Enter your response rounded to two decimal​places.)

Oriole Company was organized on July 1, 2019. Quarterly financial statements are prepared. The unadjusted and adjusted trial balances as of September 30 are shown as follows.

FIRST Journalize the adjusting entries that were made THEN create an income statement, retained earnings, and balance sheet.

Problem 08-3A Flexible budget preparation; computation of materials, labor, and overhead variances; and overhead variance report LO P1, P2, P3, P4 Skip to question [The following information applies to the questions displayed below.] Antuan Company set the following standard costs for one unit of its product. Direct materials (4.0 Ibs. @ $6.00 per Ib.) $ 24.00 Direct labor (1.9 hrs. @ $13.00 per hr.) 24.70 Overhead (1.9 hrs. @ $18.50 per hr.) 35.15 Total standard cost $ 83.85 The predetermined overhead rate ($18.50 per direct labor hour) is based on an expected volume of 75% of the factory’s capacity of 20,000 units per month. Following are the company’s budgeted overhead costs per month at the 75% capacity level. Overhead Budget (75% Capacity) Variable overhead costs Indirect materials $ 15,000 Indirect labor 90,000 Power 15,000 Repairs and maintenance 30,000 Total variable overhead costs $ 150,000 Fixed overhead costs Depreciation—Building 24,000 Depreciation—Machinery 72,000 Taxes and insurance 18,000 Supervision 263,250 Total fixed overhead costs 377,250 Total overhead costs $ 527,250 The company incurred the following actual costs when it operated at 75% of capacity in October. Direct materials (61,000 Ibs. @ $6.20 per lb.) $ 378,200 Direct labor (22,000 hrs. @ $13.10 per hr.) 288,200 Overhead costs Indirect materials $ 41,050 Indirect labor 176,800 Power 17,250 Repairs and maintenance 34,500 Depreciation—Building 24,000 Depreciation—Machinery 97,200 Taxes and insurance 16,200 Supervision 263,250 670,250 Total costs $ 1,336,650 rev: 04_27_2020_QC_CS-209738 Problem 08-3A

Part 3 3. Compute the direct materials cost variance, including its price and quantity variances. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance.)

Problem 08-3A Part 4

4. Compute the direct labor cost variance, including its rate and efficiency variances. (Indicate the effect of each variance by selecting for favorable, unfavorable, and No variance. Round "Rate per hour" answers to two decimal places.

Selected information about income statement accounts for the Rogers Company, Inc. is presented below (the company's fiscal year ends on December 31):

On July 1, 2018, the company adopted a plan to discontinue a division that qualifies as a component of an entity as defined by GAAP. The assets of the component were sold on September 30, 2018, for $50,000 less than their book value. Results of operations for the component (included in the above account balances) were as follows:

In addition to the account balances above, several events occurred during 2018 that have not yet been reflected in the above accounts:

1. A fire caused $50,000 in uninsured damages to the main office building. The fire was considered to be an infrequent but not unusual event.
2. Inventory that had cost $40,000 had become obsolete because a competitor introduced a better product. The inventory was sold as scrap for $5,000.
3. Income taxes have not yet been recorded.

Required:
Prepare a multiple-step income statement for the Rogers Company for 2018, showing 2017 information in comparative format, including income taxes computed at 40% and EPS disclosures assuming 300,000 shares of common stock.

Discussion Question

Cash in Hand Topic: Revenue Recognition/Misrepresentation of Fact by Client Characters: Heather Hunter, Senior in CPA firm “Buzz” Thompson, Owner/manager of Fashion First Sandy, part-time bookkeeper of Fashion First Author: Mary Brady Greenawalt, Associate Professor of Business Administration, The Citadel Co-author: Janine Cloutier, Virginia Tech

In addition to the usual mix of compilation, review, and audit clients for which Heather Hunt serves as a senior in a small office of a regional CPA firm, she has been assigned a new client that recently engaged the firm. Fashion First, an incorporated retail outlet, is a thriving local store. The business is run by a single owner/manager, “Buzz” Thompson, who makes all major decisions. The business has not previously used the services of a CPA firm. In addition to preparation of financial statements, the CPA firm will handle tax returns for the business. At her first visit to the client’s office, Heather is introduced to Sandy, the part-time bookkeeper who is also a full-time accounting student at the local university. At a subsequent meeting, Sandy confides to Heather that she found the job at the beginning of the semester after an extensive search. Sandy really needs the money to help finance her education, and feels lucky to have found a good-paying job during the current economic downturn. Feeling that Heather is someone she can talk to and get advice from, Sandy describes a situation that has been on her mind for some time now. Sandy’s concern relates to the handling of sales revenues. When monies from sales revenues are counted and deposited on a weekly basis, a chart is filled out with categories carefully delineating the type of payment: cash, checks, American Express, or Visa/Mastercard. Sandy’s employer, after depositing the weekly total, brings this chart back with his own written-in total of the actual amount deposited. After looking over some of these weekly deposit chats, Sandy noticed that $500 cash was missing from each deposit. After a more thorough inspection of monthly tax documents that “Buzz” Thompson has filled out, Sandy noticed that the reported monthly gross revenue was $2,000 less than what had been actually counted. The employer is the only person handling the money after it has been counted. He is also the only one to deposit the money. When Sandy asked Mr. Thompson about revenue not being reported for tax purposes, he assured her that every dollar of income was reported on the tax forms. Furthermore, “Buzz” asserted, since Sandy wasn’t the person who signed the forms, she shouldn’t be concerned.

Questions: Explain your reasoning for each question in full length! What are the Ethical Issues? Who are the Primary Stakeholders? What are the Possible Alternatives? What are the Ethics of the Alternatives?

Porter Corporation owns all 28,000 shares of the common stock of Street, Inc. Porter has 58,000 shares of its own common stock outstanding. During the current year, Porter earns net income (without any consideration of its investment in Street) of $209,000 while Street reports $181,000. Annual amortization of $13,000 is recognized each year on the consolidation worksheet based on acquisition-date fair-value allocations. Both companies have convertible bonds outstanding. During the current year, bond-related interest expense (net of taxes) is $41,000 for Porter and $21,000 for Street. Porter’s bonds can be converted into 5,000 shares of common stock; Street’s bonds can be converted into 7,000 shares. Porter owns none of these bonds.

1. What are the basic earnings per share amounts that Porter should report in its current year consolidated income statement? (Round your answers to 2 decimal places.)

2. What are the diluted earnings per share? (Round your answers to 2 decimal places.)

The information that follows is for Nancy’s Name Tents for the year ended December 31, 2015 and

covers questions 26-31. All per unit costs below are based on the production and sale of 3,000 name tents.

The relevant range is from 0 - 3,500 units.

Sales                                                                                                    $50 sales price per name tent                              

Costs:

Variable Costs                                                Per Tent (3,000 name tents produced and sold)     

                        Direct materials                                                          8

                        Direct labor                                                                7

Manufacturing overhead                              8

Period Costs                                                               5

            Fixed Costs

                        Manufacturing overhead                                            10                               

                        Period Costs                                                              5         

1) If 10,000 tents are produced and sold, what is the product cost per tent?

2) If 15,000 tents are produced and sold, what is the product cost per tent? ​​​​​​​

3) If 2,000 tents are produced and sold, what is the product cost per tent?

​​​​​​​4) What is the fixed cost per tent at 1,000 tents (including period costs) produced and sold?

​​​​​​​5) What are total period costs at 1,000 name tents (produced and sold)? ​​​​​​​   

Classifying Costs

The following is a manufacturing cost report of Marching Ants Inc. Evaluate and correct this report.

in 2018 the westgate construction company entered into a contract to construct a road for Santa Clara County for 10,000,000 The road was completed in 2020. Calculate the amount of revenue and gross profit to be recognized in each of the 3 years assuming the following costs to incur and costs to complete information. ( Do not round intermediate calculations and round your final answers to the nearest whole dollar amount.

   2018    2019 2020

Cost incurred during the year $2,016,000 3,890,000    3,290,000

Estimated cost to complete as of year end $5,184,000    3,190,000   

Company A manufactures a high quality plastic pipe I two departments, cooking and molding. Materials are introduced at various points during the work in the cooking department. After the cooking is completed, the materials are transferred into the molding department, in which pipe is formed. Materials are accounted for in the cooking department on a pound basis. Conversion cost are incurred evenly during the cooking process.

                Production data:

                                Pounds in process, May 1: 100% complete as to materials,

                                90% complete as to conversion costs……………………………………..70,000

                                Pounds started into production during May……………………………..350,000

                                Pounds completed and transferred to molding……………………………….?

                                Pounds in process, May 31: 75% complete as to materials, 25% complete as to

                                Conversion costs……………………………………………………………………….40,000

                Cost data:

                                Work in process inventory, May 1:

                                Materials cost………………………………………………………………………86,000

                                Conversion cost………………………………………………………………………..36,000

                                Cost added during May:

                                Materials cost……………………………………………………………………………447,000

                                Conversion cost……………………………………………………………………….198,000

The company uses the weighted-average method to account for units and costs.

                                Following the steps in doing the process costing for the “Cooking dept”

                                First fill in the T-Account for May: WORK IN PROCESS-COOKING

Steps:

1. Determine the “units to account for”
2. Find the “units to account for”
3. Summarize the cost to account for
4. Get the equivalent units and the unit costs
5. Assign the costs and get the cost accounted for
6. Prepare the journal entry at the end of May for completed unites

Break-Even Sales Under Present and Proposed Conditions Portmann Company, operating at full capacity, sold 1,000,000 units at a price of $190 per unit during the current year. Its income statement is as follows: Sales $190,000,000 Cost of goods sold (101,000,000) Gross profit $89,000,000 Expenses: Selling expenses $14,000,000 Administrative expenses 17,600,000 Total expenses (31,600,000) Operating income $57,400,000 The division of costs between variable and fixed is as follows: Variable Fixed Cost of goods sold 70% 30% Selling expenses 75% 25% Administrative expenses 50% 50% Management is considering a plant expansion program for the following year that will permit an increase of $9,500,000 in yearly sales. The expansion will increase fixed costs by $5,000,000 but will not affect the relationship between sales and variable costs. Required:

1. Determine the total variable costs and the total fixed costs for the current year. Total variable costs $ Total fixed costs $

2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year. Unit variable cost $ Unit contribution margin $ ?

3. Compute the break-even sales (units) for the current year. units ?

4. Compute the break-even sales (units) under the proposed program for the following year. units ?

5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $57,400,000 of operating income that was earned in the current year. units ?

6. Determine the maximum operating income possible with the expanded plant. $ ?

7. If the proposal is accepted and sales remain at the current level, what will the operating income or loss be for the following year? $ ?

Hana Coffee Company roasts and packs coffee beans. The process begins by placing coffee beans into the Roasting Department. From the Roasting Department, coffee beans are then transferred to the Packing Department. The following is a partial work in process account of the Roasting Department at July 31: ACCOUNT Work in Process—Roasting Department ACCOUNT NO. Date Item Debit Credit Balance Debit Credit July 1 Bal., 30,000 units, 10% completed 121,800 31 Direct materials, 155,000 units 620,000 741,800 31 Direct labor 90,000 831,800 31 Factory overhead 33,272 865,072 31 Goods transferred, 149,000 units ? 31 Bal., ? units, 45% completed ? Required: 1. Prepare a cost of production report, and identify the missing amounts for Work in Process—Roasting Department. If an amount is zero, enter "0". When computing cost per equivalent units, round to the nearest cent. Hana Coffee Company Cost of Production Report-Roasting Department For the Month Ended July 31 Unit Information Units charged to production: Inventory in process, July 1 Received from materials storeroom Total units accounted for by the Roasting Department Units to be assigned costs: Equivalent Units Whole Units Direct Materials Conversion Inventory in process, July 1 Started and completed in July Transferred to Packing Department in July Inventory in process, July 31 Total units to be assigned costs Cost Information Cost per equivalent unit: Direct Materials Conversion Total costs for July in Roasting Department $ $ Total equivalent units Cost per equivalent unit $ $ Costs assigned to production: Direct Materials Conversion Total Inventory in process, July 1 $ Costs incurred in July Total costs accounted for by the Roasting Department $ Costs allocated to completed and partially completed units: Inventory in process, July 1 balance $ To complete inventory in process, July 1 $ $ Cost of completed July 1 work in process $ Started and completed in July Transferred to Packing Department in July $ Inventory in process, July 31 Total costs assigned by the Roasting Department $ Feedback 1. Calculate equivalent units for materials and conversion costs. Calculate the cost per equivalent unit for materials and conversion costs. Calculate the costs assigned to the beginning inventory, the units started and completed, and the ending inventory. 2. Assuming that the July 1 work in process inventory includes $119,400 of direct materials, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between June and July. If required, round your answers to two decimal places. Increase or Decrease Amount Change in direct materials cost per equivalent unit $ Change in conversion cost per equivalent unit $

Loans - You need a new car and have decided to buy a Toyota Tundra. Fortunately, you have a great credit rating and you have your choice of financing. The cost is $26,000 out of the door. You have $3,000 to put down for a down payment. You have two finance options and need to decide which one is the best.

Option 1 - You can choose 0% financing for 60 months. The loan amount is $23,000.

a. What is your monthly payment? (Hint: divide the loan amount by 60)

b. What is the total amount you will pay for the car? (Hint: Don't think too hard... it is just the amount of the loan.)

Option 2 - You can choose $2,000 cash back, instead of 0% financing from the dealer, and decide to receive financing from your local bank. You will need to borrow $21,000 at an interest rate of 2.75% for 60 months.

c. Create an amortization table and past the first 5-6 lines in your word document.

d. What is your monthly payment?

e. What is the total amount you will pay for the car? (Add the payment column.) (.5 points)

f. Which option is better? (.5 points)

You take out a loan in the amount of $14,000 to buy a Kia Soul. The bank offers you a 3 year loan with an APR of 2.9%.

    a. Create an amortization table. Paste the first five or six lines in your Word document.

    b. What is the total amount you end up paying (including principal and interest)? (Hint: You can just add the payment column.)