Menlo Company distributes a single product. The company’s sales and expenses for last month follow:

Required:

1. What is the monthly break-even point in unit sales and in dollar sales?

2. Without resorting to computations, what is the total contribution margin at the break-even point?

3-a. How many units would have to be sold each month to attain a target profit of $31,800?

3-b. Verify your answer by preparing a contribution format income statement at the target sales level.

4. Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms.

5. What is the company’s CM ratio? If sales increase by $90,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase?

What compensation plans are employed by Yum Brands! Inc,? Do you feel these roles play a strategic role in the success or failure of the company?

Use the May 31 fiscal year-end information from the following ledger accounts (assume that all accounts have normal balances).

1. Prepare closing journal entries from the above ledger accounts.
2. Post the entries from Requirement 1 to the General Ledger accounts below. Use the transaction number from Requirement 1 as the date.

The Justice Corporation mass produces wooden chairs. The standard costs follow:

Plastic                                                  10 pounds at $4.50 per pound.

Molding                                                         3 feet at $3.00 per foot.

Direct labor                                              4 hours at $15.00 per hour.

Variable overhead                                         $3 per direct labor hour.

Fixed overhead                                          $.75 per direct labor hour.

                                  The static budget called for 80,000 direct labor hours in June.

Transactions during June follow:

• Justice purchased 200,000 pounds of plastic at $ 4.45 and issued 185,000 pounds to production.
• Justice purchased 60,000 feet of molding at $3.10 per foot and issued 50,000 feet to production.
• The direct labor payroll was 72,500 hours at $14.50.
• Overhead costs were $275,000 of which $221,125 was variable.
• Justice produced 18,000 chairs during the month.

                  Required:

1. Compute the direct materials, direct labor, variable overhead, and fixed overhead variances that were discussed in class.
2. Discuss the significance of the variances.

What goals are attempted to be accomplished by the presentation of the cash flow statement to investors?

Discuss how the format of the Cash flow statement may have contributed towards meeting its objectives.

Identify the following as an asset, liability, or equity by writing the letter of the correct classification in the space provided.

Under normal conditions, Sarah spends $8.40 per unit of materials, and it will take 3.6 units of material per pair of shoes. During July, Sole Purpose Shoe Company incurred actual direct materials costs of $63,810 for 7,090 units of direct materials in the production of 2,175 pairs of shoes.

Complete the following table, showing the direct materials variance relationships for July for Sole Purpose Shoe Company. If required, round your answers to two decimal places. When entering variances, use a negative number for a favorable cost variance

A variance that occurs when the actual cost is less than standard cost.

, and a positive number for an unfavorable cost variance

A variance that occurs when the actual cost exceeds the standard cost.

.

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Direct Labor

Under normal conditions, Sarah pays her employees $8.50 per hour, and it will take 2.8 hours of labor per pair of shoes. During August, Sole Purpose Shoe Company incurred actual direct labor costs of $65,340 for 7,260 hours of direct labor in the production of 2,100 pairs of shoes.

Complete the following table, showing the direct labor variance relationships for August for Sole Purpose Shoe Company. If required, round your answers to two decimal places. When entering variances, use a negative number for a favorable variance, and a positive number for an unfavorable variance.

The following units and costs of lawnmower Model 200 were available for sale during the year for Craftsman Hardware:

Craftsman has 35 units on hand at the end of the year. What is the dollar amount of cost of goods sold for the year according to the first-in, first-out method?

Prepare journal entries to record the following merchandising transactions of Cabela’s, which uses the perpetual inventory system and the gross method. (Hint: It will help to identify each receivable and payable; for example, record the purchase on July 1 in Accounts Payable—Boden.)

You are part of a team responsible for implementing an activity-based costing system. Some of the members do not understand the steps involved in implementing such a system. Prepare a summary showing your team members the steps involved and a brief description of each step that are completed in the process.

INDIANA CORPORATION

…… is a bakery that is known for its strawberry cheesecake. It also makes 12 different kinds of cheesecake as well as many other types of bakery items. The company uses normal costing with direct-labor dollars as their base for allocating overhead to its various bakery products.

The company estimates overhead for the upcoming year of $421,000 and estimates direct labor of $2,000,000.

The following estimated information is available for their Strawberry Cheesecake product:

Required:

1. Compute the predetermined rate (overhead per dollar of labor) – Round this to TWO decimal places

2. Determine the amount of estimated overhead applied to one unit of strawberry cheesecake (one cake) AND the estimated amount of overhead to be applied to that product line for the year

3. What is the total estimated unit cost of the strawberry cheesecake?

NOW consider the following additional information about the estimated overhead of $421,000. You have analyzed this amount, and determined that the following breakdown and have identified appropriate activities that appear to cause, or drive these costs, as follows:

ASSUME that the following amounts of various cost drivers will be used for all products and for the Strawberry Cheesecake product:

[The following information applies to the questions displayed below.]

Markus Company’s common stock sold for $3.25 per share at the end of this year. The company paid a common stock dividend of $0.65 per share this year. It also provided the following data excerpts from this year’s financial statements:     

9. What is the accounts receivable turnover and the average collection period? (Use 365 days in a year. Round your intermediate and final answers to 2 decimal places.)

10. What is the inventory turnover and the average sale period? (Use 365 days in a year. Round your intermediate and final answers to 2 decimal places.)

11. What is the company’s operating cycle? (Round your intermediate and final answers to 2 decimal places.)      

12. What is the total asset turnover? (Round your answer to 2 decimal places.)      

Q4-2 This simulation question available sources is based upon a true set of facts. The information contained in the simulation question was What is the Relationship Between the Fraud Triangle and Financial Statement Fraud? -

Required First, search the Internet or refer to textbooks to learn as much as you can about the Fraud Triangle. Then, answer the following:

1. What is the Fraud Triangle? Discuss your understanding of the Fraud Triangle and give examples of financial statement fraud for each of the Triangle: (a) Opportunity-give real or hypothetical examples in financial statement fraud. (b) Pressure-give real or hypothetical examples in financial statement fraud. (c) Rationalization -give real or hypothetical examples in financial statement fraud. e: Remember to cite references/sources from the Internet or textbooks.
2. How can the Fraud Triangle detect/prevent financial statement fraud? Discuss how each of the three elements of the Fraud Triangle can detect/prevent financial statement fraud (a) Opportunity- explain how this element can detect/prevent financial statement fraud. b) Pressure- explain how this element can detect/prevent financial statement fraud how this element can detect/prevent financial statement fraud

Dylan Products has a budget of $1,200,000 in 2015 for prevention costs. If it decides to automate a portion of its prevention activities, it will save $90,000 in variable costs. The new method will require $40,000 in training costs and $150,000 in annual equipment costs. Management is willing to adjust the budget for an amount up to the cost of the new equipment. The budgeted production level is 210,000 units.

Appraisal costs for the year are budgeted at $500,000. The new prevention procedures will save appraisal costs of $50,000. Internal failure costs average $20 per failed unit of finished goods. The internal failure rate is expected to be 4% of all completed items. The proposed changes will cut the internal failure rate by one-half. Internal failure units are destroyed. External failure costs average $48 per failed unit. The company's average external failures average 2.5% of units sold. The new proposal will reduce this rate to 1%. Assume all units produced are sold and there are no ending inventories.


How much will appraisal costs change assuming that the new prevention methods reduce material failures by 30% in the appraisal phase?

Select one:

A. $84,000 decrease

B. $150,000 decrease

C. $50,000 decrease

D. $229,000 decrease

E. $50,000 increase

2 .The Taranto Company uses the high-low method to estimate it's cost function. The information for the current year is provided below:

What is the constant for the estimating cost equation?

Select one:

A. $12,500

B. $125,000

C. $25,000

D. $225,000

E. $0

Hello,

Are you able to show the work for both questions?

Thanks,