Consolidated Industries is a diversified manufacturer with business units organized as divisions, including the Reigis Steel Division. Consolidated monitors its divisions on the basis of both unit contribution and return on investment (ROI), with investment defined as average operating assets employed. All investments in operating assets are expected to earn a minimum return of 10% before income taxes.

Reigis’s cost of goods sold is considered to be entirely variable; however, its administrative expenses do not depend on volume. Selling expenses are a mixed cost with one-third attributed to sales volume. The 2019 operating statement for Reigis follows. The division’s operating assets employed were $114,250,000 at November 30, 2019, unchanged from the year before.

Required:

1. Calculate Reigis Steel Division’s unit contribution if it produced and sold 1,700,000 units during the year ended November 30, 2019. (Round your answer to 2 decimal places.)

2. Calculate the following performance measures for 2019 for Reigis:

a. Pretax ROI, based on average operating assets employed. (Round your answer to 2 decimal places.)

b. Residual income (RI), calculated on the basis of average operating assets employed. (Enter your answer in whole dollars, not in thousands.)

The most recent financial statements for Martin, Inc., are shown here:

Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,075 was paid, and Martin wishes to maintain a constant payout ratio. Next year’s sales are projected to be $31,200. What is the external financing needed? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

EFN:

Below is the trial balance of Tom’s Tents at 5 April 2018.

The following information is relevant.

1.     The closing inventory at 5 April 2018 is valued at £143,000.

2.     On 5 January 2018 Tom sold a motor vehicle for £12,000. The customer was due to pay Tom’s Tents on 5 April 2018 but had not paid at the year end. This disposal has not been recorded in the accounts. This motor vehicle had been bought on 6 April 2015 for £25,000.

3.     On 6 January 2018, Tom bought a new motor vehicle on credit for £30,000. At the year-end Tom had still not paid for this motor vehicle and the transaction had not been recorded in the accounts.

4.     Depreciation on motor vehicles is provided at 20% per annum using the reducing balance basis on a monthly pro-rata basis. Depreciation on fixtures and fittings is provided at 10% per annum on the straight line basis, assuming no residual value. There were no purchases or disposals of fixtures and fittings during the year.

5.     Tom estimates that £6,000 due from customers will be irrecoverable and must be written off.

6.     The allowance for receivables is to be set at 5% of net receivables at 5 April 2018.

7.     Rent includes a prepayment of £2,000.

8.     Insurance includes a prepayment of £700.

9.     The heating bill will arrive on 5 May 2018 and about £500 is expected to relate to the period until 5 April 2018.

10.  The long-term loan is repayable in 5 years’ time. Interest payable on the loan is 6% and will be paid once per year.

Required:

a.Prepare the income statement for Tom’s Tents for the period ended 5 April 2018. Show your workings, including a full non-current assets note.

b.Prepare the balance sheet for Tom’s Tents as at 5 April 2018. Show your workings.

Costs per Equivalent Unit

The following information concerns production in the Baking Department for March. All direct materials are placed in process at the beginning of production.

a. Based on the above data, determine each cost listed below. Round "cost per equivalent unit" answers to the nearest cent.

b. Assuming that the direct materials cost is the same for February and March, did the conversion cost per equivalent unit increase, decrease, or remain the same in March?

on January 2, 2019, another of Smith’s subsidiaries, Johnson, entered into an operating lease for four years, with semi-annual lease payments as follows: payments 1 to 3 = $25,000; payments 4 to 6 = $30,000; and payments 7 and 8 = $35,000. Payments are to be made on the inception date and every June 30 and December 31 thereafter. The lessor’s interest rate is 6%. Provide the amortization table for the lease and the journal entries required at the inception of the lease and the lease payment on June 30, 2020. The lessee records amortization expense each time a lease payment is made.

On January 2, 2018, Smith Co. leased equipment, with a fair value of $750,000, under a capital lease calling for seven annual lease payments of $130,000 beginning January 2, 2018. Smith's incremental borrowing rate on the date of the lease was 10%. However, the lessor's implicit rate, which was known by Smith, was 8%. Provide the amortization table for the lease and the journal entries required for year ended 2018 and 2020.

Entries for Bonds Payable, including bond redemption

The following transactions were completed by Montague Inc., whose fiscal year is the calendar year:

1. Journalize the entries to record the foregoing transactions. If an amount box does not require an entry, leave it blank. When required, round amounts to the nearest dollar.

2. Indicate the amount of the interest expense in (a) 20Y1 and (b) 20Y2.

3. Determine the carrying amount of the bonds as of December 31, 20Y2.
$

Hereford Company is planning to introduce a new product with an 80 percent learning rate for production for batches of 1000 unites. The variable labor costs are $30 per unit for the first 1000-unit batch. Each batch requires 100 hours. There are $10,000 in fixed costs not subject to learning. What is the cumulative total time (labor hours) to produce 2,000 units based on the cumulative average-time learning curve?

I know that the answer is 160 hours but I don't understand how to get that answer.

Each of the following items listed below indicate how it would be reported on the statement of cash flows, using the following legend (assume the company uses the indirect method for operating activities

A Operating activity add to income

B Operating activity deduct from income

C Cash provided by investing activities

D Cash used for investing activities

E cash provided by financing activies

F Cash used for financing activities

___ 1. Purchase acme co common stock (purchase stock of own company) for $100,000

___ 2. Sold truck with book value of $7,000 for $3,000

___ 3. Declared cash dividends on common stock of $15,000 to be paid next year

___ 4. Redemption of company bonds for $95,000: the bonds had a carrying and face value of $100,000. (we retired-paid of debt)

___ 5. Recorded $49,000 of amortization for an intangible asset

___ 6. Purchased a new truck for $29,000: installment purchase, no cash down payment

___ 7. increase in accounts receivable from beginning to end of year of $12,000

___ 8. Collected $26,000 in cash from customer's payments on account receivables. Of that amount $20,000 related to sales made in the previous year

1.   Ozark Outdoors is a manufacturer of outdoor items. The company is considering the possibility of offering a new sleeping bag that would sell for $125 each. Cost to manufacture these sleeping bags includes $35 in materials and $25 in direct labor for each sleeping bag. Variable manufacturing cost is $15. In order to manufacture these sleeping bags, the company would need to incur $120,000 in fixed costs for new equipment.

Required:

1. Compute the unit contribution margin.

2. Compute the break-even point of the sleeping bag in units sold.

3. What would be the total revenue at the break-even point?

4. How many units would Ozark need to sell to earn a profit of $21,000?

QUESTION ONE:

Refer to the information provided below and answer the following questions:

1.1 Calculate the Payback period of the first alternative ( answer expressed in years, months and days)

1.2 Calculate the Accounting Rate of Return (on average investment) of the first alternative.

1.3 On the basis of the Net Present Value, which alternative should be chosen? provide relevant calculations (annuity discount factor @ 12% = 3.6048)

1.4 Calculate the internal Rate of Return of the first alternative (Annuity Discount Factor @ 13% = 3. 5 172)

information

The management of Woodies Incorporated is considering two investment opportunities:

- The first alternative involves the purchase of new machinery for R500 000 which will enable the company to modernise its plant. The machinery is expected to have a useful life of 5 years and no salvage value is anticipated. The modenisation is expected to increase effeciency, resulting in an increase of R142 000 in annual net cash flows.

- The second alternative involves purchasing a truck. the truck costs R500 000. its useful life is expected to be 5 years and a salvage value of R100 000 is anticipated. the truck is expected to generate R320 000 per year in additional revenues. The drivers salary and other cash operating expenses are expected to amount R180 000 per year. Woodies incorporated desires a return of 12%. the straight line method of depreciation is used.

Q1. Bayblo has incurred the following costs to make 200,000 units during the month of December. Rials Materials 500,000 Direct labor 200,000 Variable manufacturing overhead 60,000 Variable selling and administrative costs 90,000 Fixed manufacturing overhead 400,000 Fixed selling and administrative costs 400,000 Bayblo’s December 1st inventory consisted of 20,000 units valued at RIALS 116,000 using absorption costing. Total fixed costs and variable costs per unit have not changed during the past few months. In December, Bayblo sold 210,000 units at RIALS 20 per unit.

REQUIRED: 1. Using absorption costing, calculate the following.

a. Bayblo’s December manufacturing cost per unit

b. Bayblo’s December 30 inventory value c. Bayblo’s December net income.

2. Using variable costing, calculate the following.

a. Bayblo’s December manufacturing cost per unit.

b. Bayblo’s December 30 inventory value. c. Bayblo’s December net income.

3. Identify and explain the reason/s why the income calculated in the previous two questions might differ.

1. Keep-or-Drop Decision

   Petoskey Company produces three products: Alanson, Boyne, and Conway. A segmented income statement, with amounts given in thousands, follows:

   		Alanson		Boyne		Conway		Total
   Sales revenue		$1,280		$185		$360		$1,825
   Less: Variable expenses		1,115		45		288		1,448
   Contribution margin		$165		$140		$72		$377
   Less direct fixed expenses:
   	Depreciation	50		15		10		75
   	Salaries	95		85		84		264
   Segment margin		$20		$40		$(22)		$38

   Direct fixed expenses consist of depreciation and plant supervisory salaries. All depreciation on the equipment is dedicated to the product lines. None of the equipment can be sold.

   Assume that, each of the three products has a different supervisor whose position would be eliminated if the associated product were dropped.

   Assume that 20% of the Alanson customers choose to buy from Petoskey because it offers a full range of products, including Conway. If Conway were no longer available from Petoskey, these customers would go elsewhere to purchase Alanson.

   Required:

   Conceptual Connection: Estimate the impact on profit that would result from dropping Conway. Enter amount in full, rather than in thousands. For example, "15000" rather than "15".
   $

   Should Petoskey keep or drop Conway?
   

Tekashi is currently dating his girlfriend Sara. Sara does not have a job, nor does she go to school. Sara also has no income. Tekashi pays $10,000 towards Sara’s support and she lives with him during the entire year. Sara does not contribute to his own support.

1. Can Tekashi claim Sara as a “qualifying child” or “qualifying relative” dependent?

2. Tekashi has no children or possible dependents other than Sara. What is Tekashi’s filing status?

3.What if Sara’s mistress, Jenny, pays $10,002 towards Sara’s financial support? Does Sara still qualify as his dependent?

4. What if Sara only lives with Tekashi for 160 days of the year?

The taxation is for the United States.

Edit: I'll do it myself. /thread

       The following information is from Franklin Industries master budget for 2008:

Prepare flexible budgets for the production and sale of 14,000, 15,000 and 16,000 units, respectively.