In: Accounting
- Accounts Department:
- Production Department
Store Department
- Human resource Department
Prepare a summary that identifies the department, the weakness or threat, and control that you will implement in the new system.
Discuss at least three internal control weaknesses or threats in each of the four departments that you are working with (12 in total).
Explain why a weakness exists and the steps that you will implement in your new system to address these issues.
In: Accounting
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Greenwood Company manufactures two products—15,000 units of Product Y and 7,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z: |
| Activity Cost Pool | Activity Measure | Estimated Overhead Cost | Expected Activity | ||
| Machining | Machine-hours | $ | 227,700 | 11,000 | MHs |
| Machine setups | Number of setups | $ | 153,900 | 270 | setups |
| Production design | Number of products | $ | 91,000 | 2 | products |
| General factory | Direct labor-hours | $ | 257,000 | 10,000 | DLHs |
| Activity Measure | Product Y | Product Z |
| Machining | 7,700 | 3,300 |
| Number of setups | 60 | 210 |
| Number of products | 1 | 1 |
| Direct labor-hours | 8,700 | 1,300 |
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1. |
What is the company’s plantwide overhead rate? (Round your answer to 2 decimal places.) |
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2. |
Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.) |
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3. |
What is the activity rate for the Machining activity cost pool? (Round your answer to 2 decimal places.) |
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4. |
What is the activity rate for the Machine Setups activity cost pool? (Round your answer to 2 decimal places.) |
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5. |
What is the activity rate for the Product Design activity cost pool? (Round your answer to 2 decimal places.) |
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6. |
What is the activity rate for the General Factory activity cost pool? (Round your answer to 2 decimal places.) |
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7. |
Which of the four activities is a batch-level activity? |
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8. |
Which of the four activities is a product-level activity? |
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9. |
Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? (Round your intermediate calculations to 2 decimal places and final answer to the nearest dollar amount.) |
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10. |
Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z? (Round your intermediate calculations to 2 decimal places and final answer to the nearest dollar amount.) |
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11. |
Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z? (Round your answers to 2 decimal places.) |
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12. |
Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.) |
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13. |
Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.) |
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14. |
Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.) |
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15. |
Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.) |
In: Accounting
QA. What is beta of an asset for each scenario:
1) S&P return = 8%, σm = 5, σx = 5, market risk premium = 4%, ρxm = 0.67
2) Rx = 10%, market risk premium = 4%, t-bill rate = 4%
3) Risk free rate = 5%, σxm = 32, σm = 6, σx = 4
4) σm = 6, σx = 4, Rx = 10%, NIKKEI return = 12%, risk free rate = 2%
In: Accounting
Question 1
a. Discuss the factors that are likely to influence the desired
level of cash of a company (5
marks)
b. Outline the advantages and disadvantages of using short term
debt, as opposed to long
term debt, in the financing of working capital
c. Why cash flows rather than profits are most desirable in
financial management? (5
marks)
d. Explain the term “agency relationships” and discuss the
conflicts that might exist in the
relationship between’
i) Shareholder and managers
ii) Shareholders and creditors
What steps may be taken to overcome these conflicts?
In: Accounting
Connor and Martin have heard that IFRS is used internationally for financial statements but they know very little about it. Since they will most likely be going public and expanding internationally in the near future, they are considering switching to IFRS from GAAP and would like more information. They also realize if they go public and expand their business, they will have to deal with some issues they have not had to deal with previously, such as interim and segment reporting. For their first request, they would like you to research the following topics:
What are the similarities between GAAP and IFRS?
What are the major differences between GAAP and IFRS?
What are the requirements for interim reporting under both GAAP and IFRS?
Are there any problems or issues associated with interim reporting?
What are the advantages and disadvantages of providing segmented reporting?
What are the requirements for segment reporting under both GAAP and IFRS? Include the definition of an operating segment.
Memorandum Mechanics should be as follows:
The body of the memorandum should be a professional presentation centered on clear and concise writing. The responses to the questions should be detailed, well researched, and specifically related to CMC's industry.
The memorandum itself does not have to be in APA format. However, you should have in-text citations and a reference page. Both of these items should be in APA format.
Use the FASB Codification and IFRS to address all technical accounting issues presented in the questions, being certain to reference the applicable sections of the Codification and IFRS in your report. You may quote directly from the Codification and IFRS as long as all direct quotes are included in quotation marks.
In: Accounting
A computer virus destroyed some of the financial information for Pasquale Company’s stockholders’ equity section. You have been asked to compute the missing account balances. The only information you can recover from the computer’s backup system is presented here:
|
December 31, 2016 |
December 31, 2017 |
|
|
Preferred stock |
$3,000 |
$3,000 |
|
Common stock |
8,000 |
a.??? |
|
Paid-in capital in excess of par, preferred stock |
1,500 |
1,500 |
|
Paid-in-capital in excess of par, common stock |
12,000 |
b.??? |
|
Paid-in capital, treasury stock |
0 |
c.??? |
|
Retained earnings |
18,200 |
7,400 |
|
Treasury stock |
0 |
(7,000) |
|
Total stockholders’ equity |
42,700 |
d.???? |
During 2017, 7,000 shares of common stock with a par value of $1 were issued when the market price per share was $12.
Cash dividends of $25,000 were paid to preferred shareholders.
Pasquale Company acquired 3,000 shares of common stock at $14 to hold as treasury stock.
Pasquale Company reissued 2,500 shares of treasury stock for $16.
Calculate the account balances for:
Common Stock
Paid-In Capital in Excess of Par, Common Stock
Paid-In Capital, Treasury Stock
Stockholders’ Equity
How much net income did Pasquale Company report for 2017?
To solve these, it is helpful to put together the journal entries for the transactions a-d, then calculate the account balances and net income.
|
a. |
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b. |
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c. |
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d. |
|||
Balance of Common Stock:
Balance of Paid-In Capital in Excess of Par, Common Stock:
Balance of Paid-In Capital, Treasury Stock:
Balance of Stockholders’ Equity:
Net Income Reported in 2017:
Beginning Retained Earnings
+ Net Income
-Dividends
= Ending Retained Earnings
In: Accounting
What is the purpose of federal income tax? Why is the goal of a fair income tax system so hard to achieve?
In: Accounting
Problem 18-10
On March 1, 2017, Sandhill Construction Company contracted to construct a factory building for Fabrik Manufacturing Inc. for a total contract price of $8,310,000. The building was completed by October 31, 2019. The annual contract costs incurred, estimated costs to complete the contract, and accumulated billings to Fabrik for 2017, 2018, and 2019 are given below:
|
2017 |
2018 |
2019 |
||||
| Contract costs incurred during the year | $2,871,000 | $2,304,900 | $2,114,100 (2019 Row) | |||
| Estimated costs to complete the contract at 12/31 | 3,509,000 | 2,114,100 | –0– | |||
| Billings to Fabrik during the year | 3,220,000 | 3,530,000 | 1,560,000 |
(a) Using the percentage-of-completion method, prepare schedules to compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2017, 2018, and 2019. (Ignore income taxes.)
2017
Costs to date (12/31/17) $________
Estimated Costs to Complete $________
Estimated Total Costs $________
Percent Complete ________%
Revenue Recognized $________
Costs Incurred $________
Profit/(Loss) Recognized in 2017 $________
2018
Costs to date (12/31/18) $________
Estimated Costs to Complete $________
Estimated Total Costs $________
Percent Complete ________%
Revenue Recognized in 2018 $________
Costs Incurred in 2018 $________
Profit/ (Loss) Recognized in 2018 $________
2019
_______________? $________
Total Revenue Recognized $________
Total Profit on Contract $________
Less: Profit Previously Recognized $________
Profit/(Loss) Recognized in 2019 $________
(b) Using the completed-contract method, prepare schedules to compute the profit or loss to be recognized as a result of this contract for the years ended December 31, 2017, 2018, and 2019. (Ignore income taxes.)
2017 $________
2018 $________
2019 $________
In: Accounting
You are an auditor at a public accounting firm. You are conducting an audit for the financial year ending December 31, 2019. Your client has go public. This client is a property development company. Your client builds property in the form of apartment units, housing / real estate and also property investment products in the form of lots ready to build. In addition, this client also has a project development cooperation with its customers. The client is bound by a contract signed by both parties before a notary for the construction of a project with this customer. The project has not been completed 100%, however, the client says that the project has been completed 60% and the client acknowledges 60% of the development as revenue in the 2019 financial year.
a. In your opinion, as an auditor, what account should the client classify the apartment and housing / real estate complex be? Explain your answer!
b. What is the audit procedure that you will apply to ensure the recognition of revenue that is 60% of the project!
c. What audit evidence will you examine and what are the related assertions? Explain your answer!
In: Accounting
3. Jason Performance Auto, Inc., modifies 375 autos per year. The manager, Jason Smith, is interested in obtaining a measure of overall performance. He has asked you to provide him with a multifactor measure of last year’s performance as a benchmark for future comparison. You have assembled the following data. Resource inputs were labor, 10,000 hours; 500 suspension and engine modification kits; and energy, 100,000 kilowatt-hours. Average labor cost last year was $20 per hour, kits cost $1,000 each, and energy costs were $3 per kilowatt-hour. What do you tell Mr. Munson?
In: Accounting
the primary objetive of internal auditing is to?
In: Accounting
*Please clearly indicate which answer is for what part.*
Tim suffered greatly this year. In January a freak storm damaged his sailboat and in July Tim's motorcycle was stolen from his vacation home. Tim originally paid $30,600 for the boat, but he was able to repair the damage for $7,050. Tim paid $18,050 for the motorcycle, but it was worth $19,600 before it was stolen. Insurance reimbursed $1,540 for the boat repairs and the cycle was uninsured.
a. Calculate Tim's deductible casualty loss if his AGI is $38,500.
b. Calculate Tim's deductible casualty loss if his AGI is $137,500.
c. How would you answer a. if Tim received an additional $44,725 in interest from municipal bonds this year?
In: Accounting
Problem 16-3A
Case Inc. is a construction company specializing in custom patios. The patios are constructed of concrete, brick, fiberglass, and lumber, depending upon customer preference. On June 1, 2017, the general ledger for Case Inc. contains the following data.
| Raw Materials Inventory | $ 4,662 | Manufacturing Overhead Applied | $ 36,230 | |||
| Work in Process Inventory | $ 6,149 | Manufacturing Overhead Incurred | $ 35,132 |
Subsidiary data for Work in Process Inventory on June 1 are as
follows.
|
Job Cost Sheets |
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|
Customer Job |
||||||
|
Cost Element |
Rodgers |
Stevens |
Linton |
|||
| Direct materials | $ 666 | $ 888 | $ 999 | |||
| Direct labor | 355 | 599 | 644 | |||
| Manufacturing overhead | 444 | 749 | 805 | |||
| $ 1,465 | $ 2,236 |
$ 2,448 |
||||
During June, raw materials purchased on account were $ 5,439 ,
and all wages were paid. Additional overhead costs consisted of
depreciation on equipment $ 999 and miscellaneous costs of $ 444
incurred on account.
A summary of materials requisition slips and time tickets for June
shows the following.
|
Customer Job |
Materials Requisition Slips |
Time Tickets |
||
| Rodgers | $ 888 | $ 944 | ||
| Koss | 2,220 | 888 | ||
| Stevens | 555 | 400 | ||
| Linton | 1,443 | 1,332 | ||
| Rodgers | 333 | 433 | ||
| 5,439 | 3,997 | |||
| General use | 1,665 | 1,332 | ||
| $ 7,104 | $ 5,329 |
Overhead was charged to jobs at the same rate of $ 1.25 per dollar
of direct labor cost. The patios for customers Rodgers, Stevens,
and Linton were completed during June and sold for a total of $
20,979 . Each customer paid in full.
Journalize the June transactions: (1) for purchase of raw materials, factory labor costs incurred, and manufacturing overhead costs incurred; (2) assignment of direct materials, labor, and overhead to production; and (3) completion of jobs and sale of goods. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 2,500.)
In: Accounting
|
PLEASE ANSWER ALL QUESTIONS! Greenwood Company manufactures two products—15,000 units of Product Y and 7,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z: |
| Activity Cost Pool | Activity Measure | Estimated Overhead Cost | Expected Activity | ||
| Machining | Machine-hours | $ | 231,000 | 11,000 | MHs |
| Machine setups | Number of setups | $ | 180,000 | 300 | setups |
| Production design | Number of products | $ | 94,000 | 2 | products |
| General factory | Direct labor-hours | $ | 260,000 | 10,000 | DLHs |
| Activity Measure | Product Y | Product Z |
| Machining | 8,000 | 3,000 |
| Number of setups | 60 | 240 |
| Number of products | 1 | 1 |
| Direct labor-hours | 9,000 | 1,000 |
1.
value:
10.00 points
Required information
| Required: |
| 1. | What is the company’s plantwide overhead rate? (Round your answer to 2 decimal places.) |
eBook & Resources
eBook: Compute activity rates for an activity-based costing system.eBook: Compute product costs using activity-based costing.eBook: Contrast the product costs computed under activity-based costing and conventional costing methods.eBook: Understand the basic approach in activity-based costing and how it differs from conventional costing.
Check my work
2.
value:
10.00 points
Required information
| 2. |
Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.) |
eBook & Resources
eBook: Compute activity rates for an activity-based costing system.eBook: Compute product costs using activity-based costing.eBook: Contrast the product costs computed under activity-based costing and conventional costing methods.eBook: Understand the basic approach in activity-based costing and how it differs from conventional costing.
Check my work
3.
value:
10.00 points
Required information
| 3. |
What is the activity rate for the Machining activity cost pool? (Round your answer to 2 decimal places.) |
eBook & Resources
eBook: Compute activity rates for an activity-based costing system.eBook: Compute product costs using activity-based costing.eBook: Contrast the product costs computed under activity-based costing and conventional costing methods.eBook: Understand the basic approach in activity-based costing and how it differs from conventional costing.
Check my work
4.
value:
10.00 points
Required information
| 4. |
What is the activity rate for the Machine Setups activity cost pool? (Round your answer to 2 decimal places.) |
eBook & Resources
eBook: Compute activity rates for an activity-based costing system.eBook: Compute product costs using activity-based costing.eBook: Contrast the product costs computed under activity-based costing and conventional costing methods.eBook: Understand the basic approach in activity-based costing and how it differs from conventional costing.
Check my work
5.
value:
10.00 points
Required information
| 5. |
What is the activity rate for the Product Design activity cost pool? (Round your answer to 2 decimal places.) |
eBook & Resources
eBook: Compute activity rates for an activity-based costing system.eBook: Compute product costs using activity-based costing.eBook: Contrast the product costs computed under activity-based costing and conventional costing methods.eBook: Understand the basic approach in activity-based costing and how it differs from conventional costing.
Check my work
6.
value:
10.00 points
Required information
| 6. |
What is the activity rate for the General Factory activity cost pool? (Round your answer to 2 decimal places.) |
eBook & Resources
eBook: Compute activity rates for an activity-based costing system.eBook: Compute product costs using activity-based costing.eBook: Contrast the product costs computed under activity-based costing and conventional costing methods.eBook: Understand the basic approach in activity-based costing and how it differs from conventional costing.
Check my work
7.
value:
10.00 points
Required information
| 7. | Which of the four activities is a batch-level activity? | ||||||||
|
eBook & Resources
eBook: Compute activity rates for an activity-based costing system.eBook: Compute product costs using activity-based costing.eBook: Contrast the product costs computed under activity-based costing and conventional costing methods.eBook: Understand the basic approach in activity-based costing and how it differs from conventional costing.
Check my work
8.
value:
10.00 points
Required information
| 8. | Which of the four activities is a product-level activity? | ||||||||
|
eBook & Resources
eBook: Compute activity rates for an activity-based costing system.eBook: Compute product costs using activity-based costing.eBook: Contrast the product costs computed under activity-based costing and conventional costing methods.eBook: Understand the basic approach in activity-based costing and how it differs from conventional costing.
Check my work
9.
value:
10.00 points
Required information
| 9. |
Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? (Round your intermediate calculations to 2 decimal places and final answer to the nearest dollar amount.) |
eBook & Resources
eBook: Compute activity rates for an activity-based costing system.eBook: Compute product costs using activity-based costing.eBook: Contrast the product costs computed under activity-based costing and conventional costing methods.eBook: Understand the basic approach in activity-based costing and how it differs from conventional costing.
Check my work
10.
value:
10.00 points
Required information
| 10. |
Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z? (Round your intermediate calculations to 2 decimal places and final answer to the nearest dollar amount.) |
eBook & Resources
eBook: Compute activity rates for an activity-based costing system.eBook: Compute product costs using activity-based costing.eBook: Contrast the product costs computed under activity-based costing and conventional costing methods.eBook: Understand the basic approach in activity-based costing and how it differs from conventional costing.
Check my work
11.
value:
10.00 points
Required information
| 11. |
Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z? (Round your answers to 2 decimal places.) |
eBook & Resources
eBook: Compute activity rates for an activity-based costing system.eBook: Compute product costs using activity-based costing.eBook: Contrast the product costs computed under activity-based costing and conventional costing methods.eBook: Understand the basic approach in activity-based costing and how it differs from conventional costing.
Check my work
12.
value:
10.00 points
Required information
| 12. |
Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.) |
eBook & Resources
eBook: Compute activity rates for an activity-based costing system.eBook: Compute product costs using activity-based costing.eBook: Contrast the product costs computed under activity-based costing and conventional costing methods.eBook: Understand the basic approach in activity-based costing and how it differs from conventional costing.
Check my work
13.
value:
10.00 points
Required information
| 13. |
Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.) |
eBook & Resources
eBook: Compute activity rates for an activity-based costing system.eBook: Compute product costs using activity-based costing.eBook: Contrast the product costs computed under activity-based costing and conventional costing methods.eBook: Understand the basic approach in activity-based costing and how it differs from conventional costing.
Check my work
14.
value:
10.00 points
Required information
| 14. |
Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.) |
eBook & Resources
eBook: Compute activity rates for an activity-based costing system.eBook: Compute product costs using activity-based costing.eBook: Contrast the product costs computed under activity-based costing and conventional costing methods.eBook: Understand the basic approach in activity-based costing and how it differs from conventional costing.
Check my work
15.
value:
10.00 points
Required information
| 15. |
Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.) |
eBook & Resources
eBook: Compute activity rates for an activity-based costing system.eBook: Compute product costs using activity-based costing.eBook: Contrast the product costs computed under activity-based costing and conventional costing methods.
In: Accounting