The following cost data relate to the manufacturing activities of Chang Company during the just completed year: Manufacturing overhead costs incurred: Indirect materials $ 15,300 Indirect labor 133,000 Property taxes, factory 8,300 Utilities, factory 73,000 Depreciation, factory 152,100 Insurance, factory 10,300 Total actual manufacturing overhead costs incurred $ 392,000 Other costs incurred: Purchases of raw materials (both direct and indirect) $ 403,000 Direct labor cost $ 63,000 Inventories: Raw materials, beginning $ 20,300 Raw materials, ending $ 30,300 Work in process, beginning $ 40,300 Work in process, ending $ 70,300 The company uses a predetermined overhead rate of $20 per machine-hour to apply overhead cost to jobs. A total of 20,000 machine-hours were used during the year.

Required:

1. Compute the amount of underapplied or overapplied overhead cost for the year. (If it is overapplied, enter the amount as a negative value using ())

2. Prepare a schedule of cost of goods manufactured for the year.

1) . Employers have some latitude in determining how to keep time records, but all employers must:

a. send their time records in with their quarterly payroll tax returns to the IRS.

b. have a verifiable method for recording hours each employee works each workday and workweek.

c. have their system authenticated by the FLSa.

2) . One of the primary drivers behind the need for 'next generation' (ie – digital) timekeeping and attendance systems is:

a. the number of employees that work outside the traditional 9-5 office environment

b. increasing 'time theft'

c. the advent of job sharing

d. requirements by the FLSA

I3) . f a nonexempt employee takes work home

a. the hours worked are compensable at 2.0 times the regular rate of pay.

b. the hours worked are compensable.

c. the hours worked are compensable, but only if the employer expressly required the employee to take work home.

d. it is compensable, unless it relates to answering emails or responding to work-related social media, in which case the hours are not compensable.

Morton Company’s contribution format income statement for last month is given below: Sales (45,000 units × $24 per unit) $ 1,080,000 Variable expenses 756,000 Contribution margin 324,000 Fixed expenses 259,200 Net operating income $ 64,800 The industry in which Morton Company operates is quite sensitive to cyclical movements in the economy. Thus, profits vary considerably from year to year according to general economic conditions. The company has a large amount of unused capacity and is studying ways of improving profits.

Required: 1. New equipment has come onto the market that would allow Morton Company to automate a portion of its operations. Variable expenses would be reduced by $7.20 per unit. However, fixed expenses would increase to a total of $583,200 each month. Prepare two contribution format income statements, one showing present operations and one showing how operations would appear if the new equipment is purchased.

2. Refer to the income statements in (1). For the present operations and the proposed new operations, compute (a) the degree of operating leverage, (b) the break-even point in dollar sales, and (c) the margin of safety in dollars and the margin of safety percentage.

3. Refer again to the data in (1). As a manager, what factor would be paramount in your mind in deciding whether to purchase the new equipment? (Assume that enough funds are available to make the purchase.)

4. Refer to the original data. Rather than purchase new equipment, the marketing manager argues that the company’s marketing strategy should be changed. Rather than pay sales commissions, which are currently included in variable expenses, the company would pay salespersons fixed salaries and would invest heavily in advertising. The marketing manager claims this new approach would increase unit sales by 30% without any change in selling price; the company’s new monthly fixed expenses would be $413,640; and its net operating income would increase by 20%. Compute the company's break-even point in dollar sales under the new marketing strategy.

Sunspot Beverages, Ltd., of Fiji uses the weighted-average method in its process costing system. It makes blended tropical fruit drinks in two stages. Fruit juices are extracted from fresh fruits and then blended in the Blending Department. The blended juices are then bottled and packed for shipping in the Bottling Department. The following information pertains to the operations of the Blending Department for June. Percent Completed Units Materials Conversion Work in process, beginning 50,000 70% 40% Started into production 265,000 Completed and transferred out 255,000 Work in process, ending 60,000 75% 25% Materials Conversion Work in process, beginning $ 16,600 $ 5,000 Cost added during June $ 178,400 $ 105,700

Required:

1. Calculate the Blending Department's equivalent units of production for materials and conversion in June.

2. Calculate the Blending Department's cost per equivalent unit for materials and conversion in June.

3. Calculate the Blending Department's cost of ending work in process inventory for materials, conversion, and in total for June.

4. Calculate the Blending Department's cost of units transferred out to the Bottling Department for materials, conversion, and in total for June.

5. Prepare a cost reconciliation report for the Blending Department for June.

Fred currently earns $9,600 per month. Fred has been offered the chance to transfer for three to five years to an overseas affiliate. His employer is willing to pay Fred $10,600 per month if he accepts the assignment. Assume that the maximum foreign-earned income exclusion for next year is $104,100.

a. If Fred’s employer also provides him free housing abroad (cost of $20,600), how much of the $20,600 is excludable from Fred’s income?

b. Suppose that Fred's employer has offered Fred a six-month overseas assignment beginning on January 1 of next year. How much U.S. gross income will Fred report next year if he accepts the six-month assignment abroad and returns home on July 1 of next year?
c. Suppose that Fred’s employer offers Fred a permanent overseas assignment beginning on March 1 of next year. How much U.S. gross income will Fred report next year if he accepts the permanent assignment abroad? Assume that Fred will be abroad for 305 days out of 365 days next year.

d. If Fred’s employer also provides him free housing abroad (cost of $16,300 next year), how much of the $16,300 is excludable from Fred’s income? Assume that Fred will be abroad for 305 days out of 365 days next year.

A ​Juarez, Mexico, manufacturer of roofing supplies has developed monthly forecasts for a family of products. Data for the​ 6-month period January to June are presented in the table below. There are 8 hours of production per day.

​a) The firm would like to begin development of an aggregate plan. For this​ plan, plan​ 5, the firm wishes to maintain a constant workforce of 6​, using subcontracting to meet remaining demand. Evaluate this plan.

To determine whether this plan is​ desirable, first calculate demand per day for each month ​(enter your responses rounded to the nearest whole​ number).

The production rate per day = _____ units. ​(Enter your response as a whole​ number.)

Fill in the table below. ​(Enter your responses as whole​ numbers.)

The total regular production cost=​ $ ______ ​(Enter your response as a whole​ number.)

The total subcontracting cost =​ $ ______ (Enter your response as a whole​ number.)

Total cost with plan 5​ = ​$ ______ (Enter your response as a whole​ number.)

​b) Juarez has yet a sixth plan. A constant workforce of 7 is​ selected, with the remainder of demand filled by subcontracting. Evaluate this plan.The production rate per day = ______ units. ​(Enter your response as a whole​ number.)

Fill in the table below. ​(Enter your responses as whole​ numbers.)

The total regular production cost =​ $ ______ ​(Enter your response as a whole​ number.)

The total subcontracting cost =​ $ _______ (Enter your response as a whole​ number.)

Total cost with plan 6 =​ $ _______ ​(Enter your response as a whole​ number.)

On October 1, 2020, Eastern Timber Inc. has available for issue $850,000 bonds due in four years. Interest at the rate of 5.00% is to be paid quarterly. Calculate the issue price if the market interest rate is: (Do not round intermediate calculations. Round the final answers to the nearest whole dollar.)

a) 6%

b) 5%

c) 4%

10. In your own words, describe the purpose of the [ADJ] consolidation entry when the parent company applies the cost method of pre-consolidation bookkeeping.

On page 3-7 (Section 3-1b, Standard Deduction), the text notes that individuals are allowed “additional standard deductions” if they are age 65 or older or if they are blind. On page 3-8, the text notes that the amount of a taxpayer’s basic standard deduction may be limited to the greater of $1,050 or the sum of $350 plus the taxpayer’s earned income if the taxpayer may be claimed as a dependent on another taxpayer’s return.

1. What are the rules for determining if an individual is 65 or older for purposes of claiming an additional standard deduction on his or her calendar 2018 return?
2. What are the rules for determining whether an individual is blind for purposes of claiming an additional standard deduction on his or her calendar 2018 return?
3. If an individual can be claimed as a dependent on another person’s return, what reductions, if any, must be made to the amounts of his or her additional standard deductions for being age 65 or older or for being blind?

(1) a city levies property taxes to use for general operations of the city in the amount of $1,000,000 for calendar year 2017. it expects to collect $950,000 during the year, $30,000 during the first 60 days of 2018, and $15,000 during the remainder of 2018. it does not expect to collect the remaining $5,000. how much property tax revenue should it recognize for the year 2017?

a- $1,000,000

b- $980,000

c- $995,000

d-$990,000

(2) which of the following is not associated with government and not-for-profit organization?

a- the goal of accounting is to measure net income.

b- goods and/ or services provided maybe priced at / or below cost.

c- the organization purpose is to provide goods and / or services to its constituents .

d- resource providers often do not receive goods and / or services equal in value to the amount of resources they provide.

(3) the primary purpose of fund accounting is?

a- to keep track of long term assets and liabilities related to governmental activities.

b- to segregate an organization's resources according to the purpose(s) for which they are to be used.

c- to provide expenditure authority for a government or not-for-profit organization.

d- all of the above are major purposes of using funds.

Statement of Cash Flows—Indirect Method

The comparative balance sheet of Olson-Jones Industries Inc. for December 31, 20Y2 and 20Y1, is as follows:

The following additional information is taken from the records:

1. Land was sold for $53.
2. Equipment was acquired for cash.
3. There were no disposals of equipment during the year.
4. The common stock was issued for cash.
5. There was a $138 credit to Retained Earnings for net income.
6. There was a $42 debit to Retained Earnings for cash dividends declared.

a. Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.

Steve Russell started a snow removal and landscaping business he called Total Care Services. Selected transactions for Total Care Services are listed below.

For each transaction indicate:

The ABC Company has the following demand data (highlighted in green) for the last 2 years of sales for all models of their popular ToyPop product (in units):
- The company currently has five employees on the ToyPop line, each capable of producing approximately two ToyPops per day (assume 25 days per month).
- Hiring and layoff are not considered for Year 2018.
- The employees each earn $20 per hour for the standard 8-hour day, with $10 extra per hour premium for each hour of overtime.
- They can subcontract the production of the polybob, but to do so costs them $42 per unit above the standard cost.
- They can use inventory, but inventory holding costs are $25 per month per unit, based on the number of units in inventory at the end of the month. They have room for only 200 units in inventory, after which they must use a public storage facility, which adds another $15 per month to the inventory holding cost.
- Backorder cost is $150 per month per unit.
- They currently have (as of the end of December 2017) 29 units in inventory.

(a) Use the 2016 and 2017 demand data to develop a forecast for 2018 annual demand (month by month) (fill in cells G6 to S6).
Assume the ABC Company uses the simple moving average method.

(b) Use your 2018 forecast data to develop a "best" aggregate plan (SOP) using the Level Capacity strategy. Start the planning from calculating the following parameters

1. What is the number of hours needed for producing one unit of Toypop?

  2. What is the regular production cost per unit?

  3. What is the maximum overtime capacity per month?

  4. What is the overtime cost per unit?

  5. What is the subcontracting cost per unit?

Assuming the inventory at the end of the planning period (i.e., end of Dec.) should be as low as possible, fill in the following table

Sharp and Townson had capital balances of $80,000 and $150,000, respectively on January 1, 2014 of the current year. On May 8, Sharp invested an additional $20,000 in the partnership (already entered). During the year, Sharp and Townson withdrew $35,000 and $55,000, respectively (Already entered). At the end of the year, there was $500,000 balance in the 'Revenue' account and $380,000 in the 'Expenses' account. Sharp and Townson have agreed to split on a 2:1 basis, respectively. (xx.xx%)

1. Journalize the entries to close the revenue and expenses and the drawing accounts.

2. Prepare the statement of partner's equity for the current year.