Detailed Instructions:
In a business setting, we are often asked to write a memo to communicate with internal and external professionals. Therefore, I felt it especially beneficial for you to practice writing a memo dealing with our managerial accounting concepts.

Background:

Currently, you work at Technology on Demand (TOD), which manufactures mobile technology such as flip phones, smartphones, notebooks, and smartwatches. The company slogan is Connection, Communication, and Coordination...access when and where you need it! You are a senior accountant in the accounting department and have been with the company for five years. Since the company's inception eight years ago, TOD has operated under a traditional costing system based on machine hours. Company growth has really taken off in the last three years. Michelle Dodd, the controller hired last year, is always open to new ideas. In fact, she welcomes communications to discuss how the company is doing and what, if anything, the company could or should be doing differently. This is your chance to make a good impression on the controller and management! It is your understanding that Brad Jones, the company CFO, has submitted paperwork for retirement. Therefore, there will be opportunities for people to move up or change positions within the company. You would have an interest in the controller position. You want to propose to the current controller the idea of evaluating TOD's costing system. Perhaps, it is time for a change. You briefly mention your idea to the controller. Michelle is excited about your initial comments and asks that you send her something in writing. The controller asks that you put your ideas in a memo to her only. In turn, she will consider and include you on more research/analysis for the two of you to present to the senior management of the company.

In consideration of the background, prepare a memo in a Word document to submit to the controller. Compare a traditional costing system with an Activity-Based Costing (ABC) system. Include the similarities, differences, advantages, disadvantages of the two costing systems. Why are you suggesting the costing system be evaluated now? What do you feel this could mean for the company?

Parker Plastic, Inc., manufactures plastic mats to use with rolling office chairs. Its standard cost information for last year follows: Standard Quantity Standard Price (Rate) Standard Unit Cost Direct materials (plastic) 12 sq ft. $ 1.10 per sq. ft. $ 13.20 Direct labor 0.25 hr. $ 13.20 per hr. 3.30 Variable manufacturing overhead (based on direct labor hours) 0.25 hr. $ 2.20 per hr. 0.55 Fixed manufacturing overhead $579,080 ÷ 934,000 units) 0.62 Parker Plastic had the following actual results for the past year: Number of units produced and sold 1,280,000 Number of square feet of plastic used 12,600,000 Cost of plastic purchased and used $ 12,600,000 Number of labor hours worked 332,000 Direct labor cost $ 4,083,600 Variable overhead cost $ 1,589,000 Fixed overhead cost $ 389,000 Required: Calculate Parker Plastic’s variable overhead rate and efficiency variances and its over- or underapplied variable overhead. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for Favorable/Overapplied and "U" for Unfavorable/Underapplied.)

Winkin, Blinkin, and Nod are equal shareholders in SleepEZ, an S corporation. In the conditions listed below, how much income should each report from SleepEZ for 2021 under both the daily allocation and the specific identification allocation methods? Refer to the following table for the timing of SleepEZ’s income.

January 1 through February 18 (48 days)$209,000February 19 through December 31 (317 days) 424,000January 1 through December 31, 2021 (365 days)$633,000

a. There are no sales of SleepEZ stock during the year.

b. On February 18, 2021, Blinkin sells his shares to Nod.

c. On February 18, 2021, Winkin and Nod each sell their shares to Blinkin.

On August 1, 2020, Groton Corporation borrowed $3 million and issued a nine-month note. Interest was discounted at issuance at a 4% discount rate. Prepare the journal entries to record the issuance of the noninterest-bearing note and all subsequent events related to the note through April 30, 2021. What would be the annual effective interest rate?

Required;

Sheridan Company is a multiproduct firm. Presented below is information concerning one of its products, the Hawkeye. Date Transaction Quantity Price/Cost 1/1 Beginning inventory 1,700 $15 2/4 Purchase 2,700 22 2/20 Sale 3,200 37 4/2 Purchase 3,700 28 11/4 Sale 2,900 40 Incorrect answer iconYour answer is incorrect. Calculate average-cost per unit. (Round answer to 4 decimal places, e.g. 2.7613.) Average-cost per unit $ 21.1728 eTextbook and Media Incorrect answer iconYour answer is incorrect. Compute cost of goods sold, assuming Sheridan uses: (Round average cost per unit to 4 decimal places, e.g. 2.7631 and final answers to 0 decimal places, e.g. 6,548.) Cost of goods sold (a) Periodic system, FIFO cost flow $ (b) Perpetual system, FIFO cost flow $ (c) Periodic system, LIFO cost flow $ (d) Perpetual system, LIFO cost flow $ (e) Periodic system, weighted-average cost flow $ (f) Perpetual system, moving-average cost flow $

Anasazi Earth Clothing is a retail store specializing in women’s clothing. The store has established a liberal return policy for the holiday season in order to encourage gift purchases. Any item purchased during November and December may be returned through January 31, with a receipt, for cash or exchange. If the customer does not have a receipt, cash will still be refunded for any item less than $100. If the item is more than $100, a cheque is mailed to the customer. Whenever an item is returned, a store clerk completes a return slip, which the customer signs. The return slip is placed in a special box. The store manager visits the return counter approximately once every two hours to authorize the return slips. Clerks are instructed to place the returned merchandise on the proper rack on the selling floor as soon as possible. This year, returns at Anasazi Earth Clothing have reached an all-time high. The store has received a large number of returns of less than $100 without receipts.

1. How can sales clerks employed at Anasazi Earth Clothing use the store’s return policy to steal money from the cash register?

2. What internal control weaknesses in the return policy make cash thefts easier?

3. Would the possibility of theft be reduced by issuing a store credit in place of a cash refund for all merchandise returned without a receipt? List the advantages and disadvantages of issuing a store credit in place of a cash refund.

4. Assume that Anasazi Earth Clothing is committed to the current policy of issuing cash refunds without a receipt. What changes in the store’s procedures for customer refunds would improve internal control?

you must prepare a return on investment analysis for the regional manager of Fast & Great Burgers. This growing chain is trying to decide which outlet of two alternatives to open. The first location (A) requires a $500,000 investment and is expected to yield annual net income of $70,000. The second location (B) requires a $200,000 investment and is expected to yield annual net income of $44,000. Compute the return on investment for each Fast & Great Burgers alternative. Using return on investment as your only criterion, which location (A or B) should the company open? (The chain currently generates an 22% return on total assets.)

Required information

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

Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center).

1. Compute return on investment for each department. Using return on investment, which department is most efficient at using assets to generate returns for the company?
2. Assume a target income level of 11% of average invested assets. Compute residual income for each department. Which department generated the most residual income for the company?
3. Assume the Electronics department is presented with a new investment opportunity that will yield a 15% return on investment. Should the new investment opportunity be accepted?

The stockholders’ equity accounts of Marigold Corp. on January 1, 2017, were as follows.

During 2017, the corporation had the following transactions and events pertaining to its stockholders’ equity.

a) Journalize the transactions. (Include entries to close net income and dividends to Retained Earnings.

b) Enter the beginning balances in the accounts and post the journal entries to the stockholders’ equity accounts.

1. Suppose that depreciation expense is 3.000.000 $ and profit is 15.000.000 $. Contribution margin percentage is 60%. Breakeven revenue is 25.000.000 $. Under these conditions, what would be the profit margin?

a) 30%

b) 40%

c) 50%

d) 60%

e) Other:

2. Suppose that total fixed costs are 800.000 $ and the contribution margin percentage is 40%. What would be the degree of operating leverage in case a sales revenue of 3.000.000 $ is generated?

a) 2

b) 3

c) 4

d) 5

e) Other:

3. Suppose that total fixed costs are 800.000 $ and the contribution margin percentage is 40%. What would be the profit in case a sales revenue of 3.000.000 $ is generated?

a) 200.000 $

b) 300.000 $

c) 400.000 $

d) 500.000 $

e) Other:

Variable Costing Income Statement for a Service Company

East Coast Railroad Company transports commodities among three routes (city-pairs): Atlanta/Baltimore, Baltimore/Pittsburgh, and Pittsburgh/Atlanta. Significant costs, their cost behavior, and activity rates for April are as follows:

Operating statistics from the management information system reveal the following for April:

a. Prepare a contribution margin by route report for East Coast Railroad Company for the month of April. Compute the contribution margin ratio. Rounded to one decimal place. If required, use the minus sign to indicate a negative contribution margin.

Compute the cost of the ending inventory and the cost of goods sold under FIFO and average-cost.

Importance of recording commitments, loss contigencies and estiamted liabilities in a financial statement

Create a journal entry for the following question:

X is renting out one room to Y for $300 each month. On September 29th, 2019 Y paid for the rent from October through December 2019. At the end of the year, Y pays for another 2months from January 1, 2020 to February 2021.