Please find two ethical situations or issues that have not discussed and please post a summary of the issues. All sources - magazines, newspapers, etc. can be used. please Post the summary of each as well as documents. ethical issues or situations

Case #2

In 2017, Olivia started Sandwich Booth as a producer of fresh sandwiches sold in grocery stores throughout the Avalon Peninsula. While she produces a variety of sandwiches, her roast chicken with grilled peppers and goat cheese continues to be her most popular product line. Each sandwich sells for $10.00 and, by 2018, Olivia’s sandwiches were so popular that she could no longer keep up with demand. That year, Olivia hired two friends, Aria and Nico, to help with food production and allow her to focus her efforts on marketing and distribution.

To help Olivia understand the cost of operating her business, she implemented a standard costing system. Standard costs are updated monthly and the standard cost sheet used for July production (previous month) of the chicken sandwich product line is as follows:

* This rate is per hour (not per kilogram).

                        ** Based on direct labour hours.

Olivia also gathered actual production activity for the roast chicken sandwiches for the month of July:

Olivia estimates practical activity to be 3,250 chicken sandwiches per month. Ingredients are purchased throughout each month. Inventory data regarding raw materials for July is provided below.

Generally speaking, Olivia is pleased with the performance of Aria and Nico. They have both been enthusiastic and pleasant employees to have working for the company. Recently, Nico provided Olivia with a sample of a roast chicken sandwich made with his grandmother’s traditional family recipe. Although Olivia found it too salty for her tastes, she agreed to have Nico prepare sandwiches using the family recipe. In July, Olivia thought she noticed the roast sandwiches prepared using Nico’s family recipe were the first to sell out and, overall, was pleasantly surprised to find that roast chicken sandwich sales were more than 400 units higher than in June.

Required:

1. Olivia’s goal is to maintain a minimum net profit of 10% on the roast chicken sandwiches. Determine whether the current standard cost of the chicken sandwiches will generate the required net profit.

2. Calculate the raw material price and usage variance, the direct labour rate and efficiencies variances, and indicate whether each variance is favourable or unfavourable. Please note that there are three raw material inputs (i.e., roast chicken, grilled peppers, and goat cheese). Thus, you will need to compute three material price variances and three materials usage variances.

3. Olivia has set a control limit of plus or minus $75 on each of the raw material inputs and $100 for direct labour, for both the individual price (rate) and usage (efficiency) variances. Based on the material and labour variances you computed, which variances should be investigated?

4. Based on your variance analysis above, could the variances have any connection to Nico, one of the two new hires? If so, should Nico’s employment be terminated?

Oxford Company has two divisions. Thames Division, which has an investment base of $80,600,000, produces and sells 950,000 units of a product at a market price of $149 per unit. Its variable costs total $40 per unit. The division also charges each unit $70 of fixed costs based on a capacity of 1,000,000 units.

Lakes Division wants to purchase 240,000 units from Thames. However, it is willing to pay only $142 per unit because it has an opportunity to accept a special order at a reduced price. The order is economically justifiable only if Lakes can acquire Thames’ output at a reduced price.

Required:

a. What is the ROI for Thames without the transfer to Lakes? (Round your answer to 2 decimal places.)

b. What is Thames’ ROI if it transfers 240,000 units to Lakes at $142 each? (Note: Assuming division Thames operates at capacity and adjusts regular sales to accommodate transfer of units to Lakes) (Round your answer to 2 decimal places.)

c. What is the minimum transfer price for the 240,000-unit order that Thames would accept if it were willing to maintain the same ROI with the transfer as it would accept by selling its 950,000 units to the outside market? (Note: Assuming division Thames operates at capacity and adjusts regular sales to accommodate transfer of units to Lakes) (Round your answer to 2 decimal places.)

Jones Co. is in a technology-intensive industry. Recently, one of its competitors introduced a new product with technology that might render obsolete some of Jones's inventory. The accounting staff wants to follow the appropriate authoritative literature in determining the accounting for this significant market event.

Instructions

(a) Identify the primary authoritative guidance for the accounting for inventories.

(b) List three types of goods that are classified as inventory. What characteristic will automatically exclude an item from being classified as inventory?

(c) Define “market” as used in the phrase “lower-of-cost-or-market.”

(d) Explain when it is acceptable to state inventory above cost and which industries allow this practice.

If the auditor's test counts do not match with the test counts performed by the employees, what are some reasons as to why this may have occurred? What are some additional steps that may be required by the auditor?

Please build the answer based on following text:

Expense accounts include expenses incurred by an organization in the process of earning revenue during a given time period. The salary expense account details the debits (for example, employee salaries and wages) and credits (for example, accrual reversals, recalls and cancelled pays) posted on the journal entries for the period. Entries are posted to the General Ledger at the organization or department total level, rather than with the individual employee details.
Since expense accounts continue to build over time and are not cleared until the end of the fiscal period, the most common reconciliation methods used for these accounts are:
- reasonableness
- year-over-year comparison

A reasonableness test requires an individual to examine the General Ledger account in detail and to ensure that all the postings are in balance and seem valid.

By examining the payroll register or other reports providing details of the total amount posted to an account, it should be analyzed whether the amount shown in the account is correct. Recalled pays, cancelled cheques and manual cheques should be recorded as they occur so that accounts reflect the most current data.

Cost accounting plays a significant role in expense account reconciliation as well. An organization that uses cost accounting will charge expenses to a department, a project or a contract, according to their internal requirements. If an employee is transferred from one department or branch to another, and the paperwork is not processed when the change is effective, the employee’s salary, and any associated employer expenses, will be expensed incorrectly. A journal entry will be required to move the expenses to the correct accounts.

As expense accounts normally have a debit balance, to reduce the expense you credit the account and to increase the expense you debit the account.

A year-over-year comparison would compare each expense account for a certain time frame to determine if there have been material changes.

Question :

List three expense accounts related to payroll. Describe when you would expect the account to be cleared to zero. Explain the methods you could use to reconcile these accounts.

The following information was compiled by Wildhorse Company:

Compute the following variances:

Direct-labour flexible-budget variance $______ (Favourable/Unfavourable/neither)

How would you enforce least privilege and SoD controls in your system? Please provide an example.

The car company manufactures and sells Waxworks car polish. This expensive polish is priced at $20 per can (applicator sponge included). Car Company’s costs are:

Fixed costs (per month) Variable Costs per can

            Manufacturing          $500000                    Manufacturing          $11

            Selling costs             292000                     Selling                           3

.Find the monthly breakeven quantity using the above data.

2.How many cans must be sold to earn $60000 per month above breakeven (before taxes)?

What is the Contribution Margin Ratio (CMR), using the costs in (2)?

4. If variable selling costs increase by 20% per can, what is the new break-even quantity, assuming $60000 per month before taxes is to be earned?

Assuming a 40% tax rate, how many cans must be sold to earn an after-tax income of $90000 above breakeven, and assuming selling costs increase 20% per can?

What is the DOL in (4) above?

Which of the following is being fulfilled when management compares the budget to actual? results?

A.

Planning

B.

Directing

C.

Controlling

D.

Adjusting

The Walton Toy Company manufactures a line of dolls and a sewing kit. Demand for the company’s products is increasing, and management requests assistance from you in determining an economical sales and production mix for the coming year. The company has provided the following data:

The following additional information is available:  

The company’s plant has a capacity of 84,160 direct labor-hours per year on a single-shift basis. The company’s present employees and equipment can produce all five products.

The direct labor rate of $12 per hour is expected to remain unchanged during the coming year.

Fixed manufacturing costs total $640,000 per year. Variable overhead costs are $3 per direct labor-hour.

All of the company’s nonmanufacturing costs are fixed.

The company’s finished goods inventory is negligible and can be ignored.

Required:

1. How many direct labor hours are used to manufacture one unit of each of the company’s five products?

2. How much variable overhead cost is incurred to manufacture one unit of each of the company’s five products?

3. What is the contribution margin per direct labor-hour for each of the company’s five products?

4. Assuming that direct labor-hours is the company’s constraining resource, what is the highest total contribution margin that the company can earn if it makes optimal use of its constrained resource?

5. Assuming that the company has made optimal use of its 84,160 direct labor-hours, what is the highest direct labor rate per hour that Walton Toy Company would be willing to pay for additional capacity (that is, for added direct labor time)?

company produces camping equipment: tents, sleeping bags, and tarps. They are implementing a new accounting software and want to take the opportunity to implement activity based costing for their products. For the upcoming year, they expect to produce and sell 300,000 sleeping bags, 200,000 tents and 150,000 tarps.

Because the employees in HR, Engineering and Facilities are salaried, and because the Building Rent and Machine depreciation are in the Facilities department, the Human Resources, Facilities Maintenance, and Engineering and Quality Departments are considered to be all Fixed Costs. The production departments include costs for hourly workers, spare parts, and utilities, therefore, the Fabrication and Assembly Production Departments are considered to be all Variable Costs.

The departments, costs and other related information are as follows:

Current Sales Prices are $60 each for Sleeping Bags, $120 each for Tents, and $35 each for Tarps.

Your company wants to determine standard costs as well as understand the drivers for their costs. You have been requested to complete the following calculations. Each calculation should show the fixed cost, variable cost and total cost.

Using the step-down method, allocate costs from the support departments to the production departments.

Calculate the Hourly Operating Rate for each production department, and calculate the annual production costs for each product line.

Calculate the Standard Cost per unit for each Product type.

Calculate the Contribution Margin per unit, Standard Gross Profit per unit, Gross Margin Percentage and Total annual gross profit for each Product type.

PartA： Jan 1^st, 2020: Tony Inc. buys a machine from Avengers Inc. and will make 3 equal payments of 200,000 over the next 18 months (payments on June 30, 2020; Dec 31, 2020; and June 30, 2021). The interest rate on this annuity is 14%. Record all the journal entries from Jan 1^st 2020 until the expiration of the annuity. (4 points) Assume the machine does not depreciate.

Part B: Create the balance sheet as of December 31^st, 2020 along with the income statement and cash flow statement for the time period of Jan 1^st, 2020 to Dec 31^st,2020 (6 points) (There might have a $1 rounding issue

Elsinore Electronics is a decentralized organization that evaluates divisional management based on measures of divisional contribution margin. Home Audio (Home) Division and Mobile Electronics (Mobile) Division both sell electronic equipment, primarily for video and audio entertainment. Home focuses on home and personal equipment; Mobile focuses on components for automobile and other, nonresidential equipment. Home produces an audio player that it can sell to the outside market for $72 per unit. The outside market can absorb up to 90,000 units per year. These units require 3 direct labor-hours each.

If Home modifies the units with an additional hour of labor time, it can sell them to Mobile for $81 per unit. Mobile will accept up to 78,000 of these units per year.

If Mobile does not obtain 78,000 units from Home, it purchases them for $84 each from the outside. Mobile incurs $36 of additional labor and other out-of-pocket costs to convert the player into one that fits in the dashboard and integrates with the automobile’s audio system. The units can be sold to the outside market for $203 each.

Home estimates that its total costs are $1,080,000 for fixed costs, $14.40 per direct labor-hour, and $7.20 per audio player for materials and other variable costs besides direct labor. Its capacity is limited to 375,000 direct labor-hours per year.

Required:

Determine the following:

a. Total contribution margin to Home if it sells 90,000 units outside. (Do not round intermediate calculations.)

b. Total contribution margin to Home if it sells 78,000 units to Mobile. (Do not round intermediate calculations.)

(c) & (d). The costs to be considered in determining the optimal company policy for sales by Home.

The annual contributions and costs for Home and Mobile under the optimal policy.

Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company’s normal activity level of 96,000 units per year is:

The normal selling price is $19.00 per unit. The company’s capacity is 121,200 units per year. An order has been received from a mail-order house for 2,100 units at a special price of $16.00 per unit. This order would not affect regular sales or the company’s total fixed costs.

Required:

1. What is the financial advantage (disadvantage) of accepting the special order?

2. As a separate matter from the special order, assume the company’s inventory includes 1,000 units of this product that were produced last year and that are inferior to the current model. The units must be sold through regular channels at reduced prices. The company does not expect the selling of these inferior units to have any effect on the sales of its current model. What unit cost is relevant for establishing a minimum selling price for these units?