Make sure any calculations are clearly shown.

a) Complete the chart, showing manufacturing cost at various levels of production for Company X

b) What pattern do you observe in the behavior of unit cost? Explain briefly why this occurs.

c) Develop an equation in the form of Y = a +bX to forecast total manufacturing cost. Use this equation to forecast total costs at a level of 70,000 units.

d) Identify one reason why your forecast in c) may be unreliable.

I will definitely down vote, if essay is inappropriate
5) What is the primary objective in rotation of empolyees in banking system? (Do not select multiple answers and type your answer)
a) To identify frauds
b) To make empolyee learn
c) To aviod frauds
d) None of the above
answer based on information, else skip it

Marwick’s Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,513 per unit and then sells them to retail customers for an average price of $2,200 each. The company’s selling and administrative costs for a typical month are presented below:

During August, Marwick’s Pianos, Inc., sold and delivered 62 pianos.

Required:

1. Prepare a traditional format income statement for August.
2. Prepare a contribution format income statement for August. Show costs and revenues on both a total and a per unit basis down through contribution margin.

III. Multiple Choice

1. Joe Brown invests $10, 000 into his new business. How would the journal entry in this transaction be entered in the journal? (observe indention)

1. Cash                     10,000

       Brown, Capital       10,000

Invested cash in business

2. Cash                     10,000

Brown, Capital       10,000

Invested cash in business

3. Brown, Capital     10,000

        Cash                        10,000

Invested cash in business

4. Brown, Capital     10,000

Cash                        10,000

      Invested cash in business

2. Supplies                        500

      Accounts Payable                  500

What is the best explanation for this journal entry?

1. Purchased supplies with cash
2. Investment of supplies by owner
3. Purchased supplies on account
4. Paid accounts payable

3. Cash                             770

      Fees Earned                770

Received fees from customers.

Recording this transaction will?

1. Decrease cash and decrease revenues
2. Increase cash and increase revenues
3. Increase cash and decrease revenues
4. Increase revenues and decrease cash

4. Net income will result when

1. Revenues (credits) > expenses (debits)
2. Revenues (debits) > expenses (credits)
3. Expenses (credits) < revenues (debits)
4. Revenues (credits) = expenses (debits)

5. Which of the following will increase owner’s equity?

1. Expenses > revenues
2. The owner draws money for personal use
3. Revenues > expenses
4. Cash is received from customers on account

6. Cash                                        450

     Unearned Fees                     450

What is the best explanation for this journal entry?

1. Received cash for services performed
2. Received cash from services to be performed in the future
3. Paid cash in advance for services to be done
4. Paid cash for services to be performed

7. Equipment                                  14000

          Cash                                           4000

           Note Payable                           10000

What is the best explanation for this journal entry?

1. Purchased equipment, paid cash of $4000, with the remainder to be paid in payments
2. Purchased equipment, paid cash of $4000, with the remainder to be received in payments
3. Purchased equipment and paid cash for the entire amount
4. Purchased equipment on credit

8. The process of rewriting the information from the journal to the ledger is called

1. Sliding
2. Transposing
3. Journalizing
4. Posting

9. The verification that the total dollar amount of the debits equals the total dollar amount credits in the ledger is called a?

1. Ledger
2. Trial balance
3. Account
4. Balance sheet

10. Of the following financial reports, which one is the one that will determine if the accounting equation is in balance?

1. Journal entry
2. Income statement
3. Trial balance
4. Account reconciliation

11. If the two totals of a trial balance are not equal, it could be due to

1. Failure to record a transaction
2. Recording the same erroneous amount for both the debit and credit parts of a transaction
3. An error in determining the account balances, such as a balance being incorrectly computed
4. Recording the same transaction more than once

12. The accounts in the ledger of Mickeys Park Co. are listed in alphabetical order. All accounts have normal balances.

Accounts Payable 500
Accounts Receivable 800
Investment 1000
Cash 1600
Withdrawals 200
Fees Earned 2,000
Insurance expense 100
Land 2000
Wages expense 400
Owner’s equity 1800

Preparing a trial balance, the total of the debits are

1. $5, 300
2. $10,600
3. $4, 100
4. $10, 400
5. $4, 700

Of all the times this hard drive could crash, it had to be now, ” Marcy cried. “How can I finish the June financial reports without all the information? I knew I should have backed up the disk last night before I left work.” News of the disaster traveled quickly through the office, and people began to stop by her cubicle to offer their help.

     John was the first to the rescue. “It might not be as bad as you think, Marcy. I have the financial reports from May right here. According to the balance sheet, we had a total inventory of $99,000 at the end of May. And I remember that the Finished Goods Inventory was one-third of that amount.”

     “I just finished the inventory counts last night,” Peter chimed in from across the hall. “According to my tally sheets, we finished June with $80,000 in Direct Materials Inventory, $52,000 in Work in Process Inventory, and $25,000 in Finished Goods Inventory. This was a 100% increase from the balances in Direct Materials Inventory and Work in Process Inventory at the end of May. I bet with a little more investigative work, we can get all the numbers you need to complete the reports.”

     Sally called from Payroll to tell Marcy that the company had paid a total of $36,000 for direct labor during June. Juan, the billing supervisor, e-mailed Marcy that the company had sent out invoices to customers totaling $291,000.

     Marcy knew that the overhead rate was 200% of direct labor costs. She also knew that the company priced its product using a 50% markup on the cost of goods sold. Armed with all this information, she sat down to reconstruct the inventory accounts for June.

(1) Calculate the begininng finished goods. (Round answer to the nearest dollar amount, e.g. 5,275.)

(2) Calculate the beginning direct materials. (Round answer to the nearest dollar amount, e.g. 5,275.)

(3) Calculate the beginning work in process. (Round answer to the nearest dollar amount, e.g. 5,275.)

(4) Calculate the cost of goods sold. (Round answer to the nearest dollar amount, e.g. 5,275.)

(5) Calculate the cost of goods manufactured. (Round answer to the nearest dollar amount, e.g. 5,275.)

(6) Calculate the direct material used. (Round answer to the nearest dollar amount, e.g. 5,275.)

(7) Calculate the amount of purchases. (Round answer to the nearest dollar amount, e.g. 5,275.)

(8) State the amount of direct labor for the month.

(9) Calculate the amount of applied overhead.

Due to erratic sales of its sole product—a high-capacity battery for laptop computers—PEM, Inc., has been experiencing financial difficulty for some time. The company’s contribution format income statement for the most recent month is given below: Sales (13,300 units × $30 per unit) $ 399,000 Variable expenses 239,400 Contribution margin 159,600 Fixed expenses 177,600 Net operating loss $ (18,000 ) Required: 1. Compute the company’s CM ratio and its break-even point in unit sales and dollar sales. 2. The president believes that a $6,600 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will result in an $88,000 increase in monthly sales. If the president is right, what will be the increase (decrease) in the company’s monthly net operating income? 3. Refer to the original data. The sales manager is convinced that a 10% reduction in the selling price, combined with an increase of $36,000 in the monthly advertising budget, will double unit sales. If the sales manager is right, what will be the revised net operating income (loss)? 4. Refer to the original data. The Marketing Department thinks that a fancy new package for the laptop computer battery would grow sales. The new package would increase packaging costs by 0.60 cents per unit. Assuming no other changes, how many units would have to be sold each month to attain a target profit of $4,600? 5. Refer to the original data. By automating, the company could reduce variable expenses by $3 per unit. However, fixed expenses would increase by $56,000 each month. a. Compute the new CM ratio and the new break-even point in unit sales and dollar sales. b. Assume that the company expects to sell 20,200 units next month. Prepare two contribution format income statements, one assuming that operations are not automated and one assuming that they are. (Show data on a per unit and percentage basis, as well as in total, for each alternative.) c. Would you recommend that the company automate its operations (Assuming that the company expects to sell 20,200)?

Journal entries and financial statements for an Enterprise Fund

The City of Whitt Falls plans to develop a golf course during 2018 and account for it as the Golf Enterprise Fund (GEF). The course will be built on a parcel of land to be purchased from a private party. The planned out-of-pocket costs for the new course and their financing are as follows:

The City plans to sell the bonds on February 1, 2018. Because the bonds are a term issue, bond principal matures in full on February 1, 2028. Interest is payable each August 1 and February 1, beginning August 1, 2018. The bond covenant requires that assets equal to one-tenth of the bond principal be transferred to a restricted account within the GEF on December 31 of each year. Whitt observes a calendar fiscal year.

Simmons Design and Construction, Inc. (Simmons) has been awarded the contract to develop the golf course. Construction will commence February 15, 2018, and be completed no later than May 31, so it can open for business during June. The contract stipulates that progress billings from Simmons will be paid within 30 days of receipt, with 5 percent retainage held pending completion and acceptance of the project. The city engineer will inspect the contractor’s work and approve progress payments.

Accounting for the GEF will be done by the city’s existing accounting department (a General Fund department), which will bill the GEF for services rendered at the end of the year. To help the GEF get on its feet financially, no interfund payables will be settled in cash during 2018.

Prepare (a) journal entries (including closing entries) to record the following events and transactions for the year ended December 31, 2018, in the GEF. The corresponding entries that would be made in other funds are not required. In addition, prepare (b) the statement of net position and (c) the statement of revenues, expenses, and changes in net position for the GEF as of and for the fiscal year ending December 31, 2018.

1. January 3, 2018: Whitt Falls formally established the GEF; the fund’s first transaction was the receipt, in cash, of the capital contribution from the General Fund.

2. January 24: The city acquired the adjacent parcel of land from the private owner for the planned $500,000.

3. February 1: The revenue bonds were sold at par ($3,000,000).

4. February 15: Development of the golf course itself and construction of the clubhouse commenced.

5. March 31: Simmons submitted the first progress billing of $1,800,000. The billing was approved and set up as a construction contracts payable after deducting the 5 percent retainage. (Because of the short duration of the construction period, no construction in progress accounts will be used.) $400,000 of the amount billed represents the cost of sod, sprinklers, landscaping, and fencing (which the city classifies as “improvements other than buildings”). The balance applies to the cost of the clubhouse (“buildings”).

6. April 25: The construction contracts payable currently due Simmons was paid.

7. April 30: The second progress billing from Simmons, $1,500,000, was approved and set up as a construction contracts payable after deducting the 5 percent retainage; $600,000 applies to sod, sprinklers, landscaping, and fencing (which is now fully installed), with the remainder to the clubhouse building.

8. May 19: The construction contracts payable currently due Simmons was paid.

9. May 23: Simmons’ third and final progress billing, $700,000 (all of which represents clubhouse construction costs), was approved and set up as a construction contracts payable after deducting the 5 percent retainage.

10. May 30: The construction contracts payable currently due Simmons was paid.

11. June 1: The new golf course was formally accepted by the City (without need for “touch-up” work), and all remaining amounts due to Simmons were paid.

12. June 1: The City acquired golf course maintenance equipment by entering into a 4-year financing lease. The first lease payment of $50,000 was paid on June 2 when the equipment was delivered. The remaining lease payments of $50,000 each will occur on the first, second, and third anniversary of the first payment. Assume that the interest rate on the lease is 4 percent.

13. June 2: Inventory in the amount of $12,000 was acquired for the pro shop; the purchase created an accounts payable.

14. June 4: The course opened for business. Greens fees (charges for services) aggregated $209,000 for June. Pro shop sales (all for cash) amounted to $5,000.

15. June 30: Expenses for June were as follows. (Charge all expenses to “Operating expenses—cost of sales.”)

16. August 1: The first debt service payment on the revenue bonds was made.

17. December 31: Greens fee revenues for the second half of 2018 totaled $370,000; pro shop sales for the same period were $21,200.

18. December 31: Second-half 2018 expenses were as follows:

19. December 31: Interest was accrued on the revenue bonds.

20. December 31: The GEF recorded depreciation for 2018 as follows:

21. December 31: The GEF recorded amortization on the intangible asset lease of $23,594.

22. December 31: The restricted asset account—Cash restricted for bond principal retirement—was established in accordance with the requirements of the bond covenant.

Notes: 1. If no entry is required for a transaction, select "No entry" as your answers and leave the Debit and Credit answers blank (zero).
2. Round answers to the nearest whole number, when applicable.

During 2020, GR Engineering Company constructed a building for its own use at a total cost of $14,700,000.

The weighted average accumulated expenditures on assets qualifying for capitalization of interest during 2020 were $10,200,000. The company had the following debt outstanding at December 31, 2020: 1. 10%, 5-year note to finance construction of this building, dated January 1, 2020, with interest payable annually on January 1 $6,300,000 2. 12%, ten-year bonds issued at par on December 31, 2014, with interest payable annually on December 31 7,000,000 3. 9%, 4-year note payable, dated January 1, 2019, with interest payable annually on January 1 3,500,000 Compute the amounts of each of the following (show computations). 1. Avoidable interest 2. Actual interest 3. Total interest to be capitalized during 2020  

Based the elicitation process, do a strategic analysis on buying a table for a company

Assess the current state

Define what you believe is the future

Assess any risks

Provide the gap between the AS-IS and TO-BE states

Information for the Nichols Manufacturing Company for the month of May is as follows: Beginning work in process: Cost of Inventory at process, May 1 $5,010 Units, 800 Direct materials, 100% complete Conversion costs, 70% complete Units started in May, 14,000 Ending work in process inventory: Costs charged to Work in Process during May : Units, 1,500 Direct materials costs, $57,400 Direct materials, 100% complete Direct labor costs, $20,049 Conversion costs, 30% complete Factory overhead costs, $30,073 Prepare a cost of production report for the month of May, using the FIFO method. Round your cost per equivalent unit amounts to two decimal places. Round all other amounts to the nearest dollar. If an amount is zero enter answer as "0".

Question 05: a) Big Bite Barbeque is engaged in the business of ready to cook barbeque shots. The preparation of barbeque shots passes through 3 culinary processes namely: marinating & slicing. Packing process is outsourced.

Departmental supervisors report that ending WIP is:

• 100% complete as to materials in marinating and slicing department.

• 100% complete as to labor in marinating and 45% complete in slicing department.

• 25% complete as to FOH in marinating and 70% complete in slicing department.

Required: Construct a CPR for marinating department for the month ended June 30, 2017 showing proper calculations.

b) Hill-way Pharmaceuticals prepare cough syrups for children under the age of 10 years. The process alcohol, hydrazine & other chemical stabilizers in a process that results in 2 products:

• Cough syrup (800 liters)

• Liquor (400 liters)

Common cost of processing are £46,700. Cough syrup is sold for £2 per 100ml and liquor for £1.8 per 250ml.

REQUIRED: Allocate the common costs on basis of physical output & sales value method.

Question 04: Daisy Farms (Pvt.) Ltd is engaged in the business of producing premium quality cheese. The cheese is available in 2 packing sizes:

The following information is available for the month of February 2017:

• The variable cost of producing every 10g of cheese is $0.05.

• Rent of the dairy farm is $350 per month.

• Electricity charges are $0.5 per unit. Small packs requires 2 units of electricity while large packs needs 3 units of electric power. Fixed line rent is $250 per month.

• Fixed costs are allocated to the products on basis of their sales price.

REQUIRED: Determine the following:

1. The contribution earned by each pack of cheese.

2. The no. of large packs to be sold in February to acquire breakeven.

3. The $ sales revenue of small packs in February to acquire breakeven.

4. The total contribution if 200 small packs & 131 large packs of cheese were sold in February 2017.

Kubin Company’s relevant range of production is 30,000 to 35,000 units. When it produces and sells 32,500 units, its average costs per unit are as follows:

Required:

1. Assume the cost object is units of production:

a. What is the total direct manufacturing cost incurred to make 32,500 units?

b. What is the total indirect manufacturing cost incurred to make 32,500 units?

2. Assume the cost object is the Manufacturing Department and that its total output is 32,500 units.

a. How much total manufacturing cost is directly traceable to the Manufacturing Department?

b. How much total manufacturing cost is an indirect cost that cannot be easily traced to the Manufacturing Department?

3. Assume the cost object is the company’s various sales representatives. Furthermore, assume that the company spent $146,250 of its total fixed selling expense on advertising and the remainder of the total fixed selling expense comprised the fixed portion of the company's sales representatives’ compensation.

a. When the company sells 32,500 units, what is the total direct selling expense that can be readily traced to individual sales representatives?

b. When the company sells 32,500 units, what is the total indirect selling expense that cannot be readily traced to individual sales representatives?

Question 01: Select the best answers for the following questions:

1. Sales price – Variable Prime cost – Variable FOH per unit

a) Factory cost b) Contribution margin

c) Common cost share d) Margin of safety

2. is the FOH rate applied to the whole production facility

a) Predetermined FOH rate b) Blanket FOH rate

c) Budgeted FOH rate d) Both (a) & (c)

3. The completion percentage for previous department in EPQ is usually

a) 50% b) 100%

c) More than 50% but less than 100% d) 75%

4. If margin of safety is $2,000 and breakeven sales are 5,000 units then planned sales are

a) $7,000 b) $2,000

c) 60% d) None of these

5. Is usually not allocated any cost in joint product costing approach

a) By-product b) Low quality joint product

c) Low quantity joint product d) Further processed product

6. In breakeven chart the area below the breakeven point reflects

a) Profit b) Loss

c) Variable cost d) Revenue

7. If planned sales are 500 units & breakeven sales are 200 units then MOS ratio =

a) 50% b) 60%

c) 70% d) 80%

8. Total Factory Cost = Prime Cost + Conversion Cost -

a) FOH b) Indirect labor

c) Direct Labor d) Both (b) & (c)

9. In decision making & CVP analysis sunk cost is

a) Relevant cost b) Avoidable cost

c) Un-avoidable cost d) Irrelevant cost

10. If per unit contribution margin is $2.5 & fixed costs are $30,000 breakeven point in units is

a) 75,000 b) 12,000

c) 63,000 d) None of these

In 1997, the Saudi Black Cement Co began operating a cement plant outside of Riyadh, KSA. The Company employed over 100 local residents and by 2000 had invested SAR 60 million in this plant. The plant, however emitted large amounts of pollution as well as causing constant vibrations and loud noise. Local residents filed suit against the Company claiming that the air pollution, the noise, and the vibrations were harming their health and property. The suit asked that the court issue an injunction that would close down the plant until the pollutions and vibrations could be eliminated. The Company was already using the best available technology, which meant that the suit was asking that the pant be closed down indefinitely. The court refused to issue the injunction. It reasoned that the costs of closing the plant far outweighed the benefits to be gained by the residents. Instead, the court ruled that the cement company should pay residents a one-time fee for damages that could be proven to exist already, and then pay them a monthly fee to compensate them for ongoing harms. This fee was calculated to be a fair market price for what the residents would receive if they were inclined and able to rent their property. Questions: Was the decision of the court in this case fair. If so, why? If not, why not?