Snavely, Inc., manufactures and sells two products: Product E1 and Product A7. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:

The direct labor rate is $21.10 per DLH. The direct materials cost per unit for each product is given below:

The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity:

The total overhead applied to Product E1 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.)

rev: 03_25_2018_QC_CS-119201

Multiple Choice

• $1,214,465

• $608,732

• $523,169

• $436,128

A company has a December year end and creates checks to pay their vendors towards the end of the month. The company creates all the proper journal entries at the time of creating the checks, but they do not mail the checks until January. Explain which, if any financial ratios are affected by this decision. Explain why this decision would be made?

Second case

#1:CRV Corp manufactures small plastic fittings for plumbing applications. They have accepted a new contract to provide a wide range of custom plastic fittings. To service the contract, CRV purchases a new, highly complex plastic injection molding machine. CRV’s fiscal year coincides with the calendar year. The machine is installed and operational as of July 1, 2015.

CRV provides the following data:

1. Purchase price of machine: $275,000

2. Shipping and installation: $ 45,000

3. Training costs: $ 15,000

4. Useful life: 5 years

5. Estimated salvage: $ 12,500

Required:

1. Prepare a depreciation schedule showing Net Book value (beginning and ending), depreciation expense, and accumulated depreciation for the asset. Hint: pay attention to dates of acquisition and fiscal year.

Prepare one schedule for each method:

a. Straight-line

b. Double-declining balance

Excel Format

2. Qualitative analysis:

CRV Company receives an offer of $159,000 for the machine in December, 2018.

a. What factors should CRV Company consider in determining whether to sell or keep the machine?

b. Evaluate the implication on taxable income under each deprecation method assuming CRV sells the machine at the end of December 2018.

Use $ values to support your support your written narrative.

#2: Inventory valuation:

The operations manager for CRV has asked you to provide a quantitative and qualitative inventory analysis using a sample of purchases as shown below.

The manager has asked for the following:

1. Calculate the $ ending inventory and $ cost of goods sold using each of the following inventory methods:

a. FIFO

b. LIFO

c. Average cost

2. Which inventory method would you recommend for reporting for income tax purposes to minimize taxable income? Why?

3. The company is operating in an inflationary environment. Which method should the company use to maximize inventory valuation? Why?

4. Looking at the purchasing volume versus demand, what guidance would you offer to the operations manager regarding inventory management and cash flow?

All calculations must be indicated via Excel formulas.

Problem 10-10 Multiple Products, Materials, and Processes [LO10-1, LO10-2]

Mickley Corporation produces two products, Alpha6s and Zeta7s, which pass through two operations, Sintering and Finishing. Each of the products uses two raw materials—X442 and Y661. The company uses a standard cost system, with the following standards for each product (on a per unit basis):

Information relating to materials purchased and materials used in production during May follows:

The following additional information is available:

1. The company recognizes price variances when materials are purchased.

2. The standard labor rate is $22.00 per hour in Sintering and $21.50 per hour in Finishing.

3. During May, 1,300 direct labor-hours were worked in Sintering at a total labor cost of $30,680, and 2,960 direct labor-hours were worked in Finishing at a total labor cost of $69,560.

4. Production during May was 1,700 Alpha6s and 1,550 Zeta7s.

Required:

1. Complete the standard cost card for each product, showing the standard cost of direct materials and direct labor.

2. Compute the materials price and quantity variances for each material.

3. Compute the labor rate and efficiency variances for each operation.

Company owner contributes 100,000, which is invested in a twenty year bond with a 5% coupon paid semi-annually. After six months the firm receives the coupon payment of 2500 and the market price has reached to 102,000. Show the balance sheet and income statement treatment under each of the following categorization: held for trading, available for sale, held to maturity.

Share about the taxation of carried interests. How would you explain them to a person without a business background? Should it be allowed or encouraged? Can you think of an alternative method to tax these investments?

Assume that you will have a 10-year, $19,000 loan to repay when you graduate from college next month. The loan, plus 6 percent annual interest on the unpaid balance, is to be repaid in 10 annual installments of $2,581 each, beginning one year after you graduate. You have accepted a well-paying job and are considering an early settlement of the entire unpaid balance in just three years (immediately after making the third annual payment of $2,581). Prepare an amortization schedule showing how much money you will need to save to pay the entire unpaid balance of your loan three years after your graduation. (Round your answers to the nearest dollar amount. Enter all amounts as positive numbers.)  

5. A broker offers to sell you shares of Bay Area Healthcare, which just paid a dividend of $2 per share. The stock's price is $30 a share. The dividend is expected to grow at a constant rate of 5% per year. The stock's required rate of return is 12%. What is the expected total return yield (this is the expected dividend yield + expected capital gains yield) for each of the next three years?

Choice: 8%

Choice: 10% C

hoice: 12%

Choice: 14%

6. Assume the risk-free rate is 6% and the market risk premium is 7%. The stock of Physicians Care Network (PCN) has a beta of 1.5. The last dividend paid by PCN (D0) was $2 per share. What would PCN's stock value be if the dividend were expected to grow at a constant rate of negative 5%.

Choice: $6.00

Choice: $8.84

Choice: $9.50

Choice: $17.60

7. Assume the risk-free rate is 5% and the market risk premium is 8%. The stock of Physicians Care Network (PCN) has a beta of 1.5. The last dividend paid by PCN (D0) was $2 per share. What would PCN's stock value be if the dividend were expected to grow at a constant rate of 0%.

Choice: $0.00

Choice: $5.05

Choice: $11.77

Choice: $20.40

8. Assume the risk-free rate is 6% and the market risk premium is 6%. The stock of Physicians Care Network (PCN) has a beta of 1.5. The last dividend paid by PCN (D0) was $2 per share. What would PCN's stock value be if the dividend were expected to grow at a constant rate of 10%.

Choice: $35.00

Choice: $40.00

Choice: $44.00

Choice: $50.00

Process costing can be found in which of the following companies (industries)?

East Bay Fisheries Inc. processes king salmon for various distributors. Two departments are involved — processing and packaging. Data relating to tons of king salmon processed in the processing department during June 2016 are provided below:

Total equivalent units for conversion under the FIFO method are calculated to be:

Giddings Pharmaceutical Company is a maker of drugs for high blood pressure and uses a process costing system. The following information pertains to the final department of Giddings's blockbuster drug called Solcax.

Giddings calculates separate costs of spoilage by computing both normal and abnormal spoiled units. Normal spoilage costs are reallocated to good units and abnormal spoilage costs are charged as a loss. The units of Solcax that are spoiled are the result of defects not discovered before inspection of finished units. Materials are added at the beginning of the process. Using the weighted-average method, answer the following question:

What are the total conversion costs in ending inventory?

Problem 11-26A Analyzing the stockholders' equity section of the balance sheet LO 11-2, 11-3, 11-7

The stockholders’ equity section of the balance sheet for Mann Equipment Co. at December 31, Year 1, is as follows

Note: The market value per share of the common stock is $56, and the market value per share of the preferred stock is $26.
Required
a. What is the par value per share of the preferred stock?
b. What is the dividend per share on the preferred stock? (Round your answer to 2 decimal places.)
c. What was the average issue price per share (price for which the stock was issued) of the common stock? (Round your answer to 2 decimal places.)
e. If Mann declares a 2-for-1 stock split on the common stock, how many shares will be outstanding after the split? What amount will be transferred from the retained earnings account because of the stock split? Theoretically, what will be the market price of the common stock immediately after the stock split?

Here is the entire problem; however the trial balance did not copy in correctly. I need to know how to calculate the basic consolidation entry (mostly income from Soda Company, Investment in Soda Company, NCI in NI and NCI in NA.

Pop Corporation acquired 70 percent of Soda Company's voting common shares on January 1, 20X2, for $119,000. At that date, the noncontrolling interest had a fair value of $51,000 and Soda reported $70,000 of common stock outstanding and retained earnings of $33,000. The differential is assigned to buildings and equipment, which had a fair value $29,000 higher than book value and a remaining 10-year life, and to patents, which had a fair value $38,000 higher than book value and a remaining life of five years at the date of the business combination. Trial balances for the companies as of December 31, 20X3, are as follows:

Pop Corporation       Soda Company  
Item       Debit       Credit       Debit       Credit  
Cash & Accounts Receivable       $   18,400                       $   24,600                      
Inventory           168,000                           38,000                      
Land           83,000                           43,000                      
Buildings & Equipment           370,000                           263,000                      
Investment in Soda Company           117,235                                                  
Cost of Goods Sold           189,000                           82,800                      
Depreciation Expense           20,000                           15,000                      
Interest Expense           19,000                           8,200                      
Dividends Declared           33,000                           18,000                      
Accumulated Depreciation                   $   143,000                           $   75,000      
Accounts Payable                       95,400                               38,000      
Bonds Payable                       240,790                               110,000      
Bond Premium                                                       1,600      
Common Stock                       123,000                               70,000      
Retained Earnings                       130,900                               63,000      
Sales                       263,000                               135,000      
Other Income                       12,600                                      
Income from Soda Company                       8,945                                      
$   1,017,635       $   1,017,635           $   492,600           $   492,600      

On December 31, 20X2, Soda purchased inventory for $31,200 and sold it to Pop for $48,000. Pop resold $30,000 of the inventory (i.e., $30,000 of the $48,000 acquired from Soda) during 20X3 and had the remaining balance in inventory at December 31, 20X3.

During 20X3, Soda sold inventory purchased for $65,000 to Pop for $100,000, and Pop resold all but $29,000 of its purchase. On March 10, 20X3, Pop sold inventory purchased for $17,000 to Soda for $34,000. Soda sold all but $8,500 of the inventory prior to December 31, 20X3. Assume Pop uses the fully adjusted equity method, that both companies use straight-line depreciation, and that no property, plant, and equipment has been purchased since the acquisition.

Required:
a. Prepare all consolidation entries needed to prepare a full set of consolidated financial statements at December 31, 20X3, for Pop and Soda. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

b. Prepare a three-part consolidation worksheet for 20X3. (Values in the first two columns (the "parent" and "subsidiary" balances) that are to be deducted should be indicated with a minus sign, while all values in the "Consolidation Entries" columns should be entered as positive values. For accounts where multiple adjusting entries are required, combine all debit entries into one amount and enter this amount in the debit column of the worksheet. Similarly, combine all credit entries into one amount and enter this amount in the credit column of the worksheet.)

Jack, a geologist, opened a business organized as a C corporation called Geo-Jack (GJ) in January of this year. Jack is the sole shareholder. Assume GJ reports on a calendar year and uses the accrual method of accounting. For each item below, indicate its effect on Jack’s taxable income and you must clearly indicate whether it is positive or negative.

1. In an attempt to get his name and new business recognized, GJ paid $9,000 for a one-page ad in the Geologic Survey. It also paid $11,000 in radio ads to be run through the end of December.

______________

2. In November, GJ’s office was broken into and equipment valued at $6,000 was stolen. The tax basis of the equipment was $6,500. GJ received $4,000 of insurance proceeds from the theft.

______________

3. GJ incurred a $5,000 fine from the state government for digging in an unauthorized digging zone.

______________

4. GJ reimbursed employee-salespersons $4,200 for meals involving substantial business discussion.

______________

Pirate Seafood Company purchases lobsters and processes them into tails and flakes. It sells the lobster tails for $19.50 per pound and the flakes for $14.60 per pound. On average, 100 pounds of lobster are processed into 62 pounds of tails and 27 pounds of flakes, with 11 pounds of waste. Assume that the company purchased 3,500 pounds of lobster for $4 per pound and processed the lobsters with an additional labor cost of $7,300. No materials or labor costs are assigned to the waste. If 2,033 pounds of tails and 865 pounds of flakes are sold, calculate the allocated cost of the sold items and the allocated cost of the ending inventory. The company allocates joint costs on a value basis. (Round your answers to nearest whole number. Round cost per pound answers to 2 decimal places.)

Answer is complete but not entirely correct.