Leo Company has identified the following overhead costs and cost drivers for next year:

Overhead Item	Expected Costs	Cost Driver	Maximum Quantity
Setup costs	$1,152,000	Number of setups	4,800
Ordering costs	320,000	Number of orders	40,000
Maintenance	1,600,000	Machine-hours	64,000
Power	160,000	Kilowatt-hours	400,000

The following is one of the jobs completed during the year:

	Job 201
Direct materials	$18,000
Direct labor	$24,000
Units completed	750
Direct labor-hours	180
Number of setups	12
Number of orders	16
Machine-hours	360
Kilowatt-hours	180

Required

Determine the unit cost for job 201 using the four cost drivers (i.e., using Activity-Based Costing).

Materials Management:

1. Identify the following as master data or transaction data

Create material master for trading goods

Create purchase order Referencing an RFQ

Extend material master for trading goods

Display purchase order

Create new vendor (supplier)

Create goods receipt for purchase order

Maintain quotation from vendors

Create invoice receipt from vendor

Post payment vendor

Display purchase order history

Create purchase requisition

Evaluate quotation on price

Display purchase order history

Display vendor line items

Display stock or requirement list                       

Display/Review G/L Account balances and individual line items

Verify physical receipt of goods

2. Identify the following as preventive or detective controls

Create material master for trading goods

Create purchase order Referencing an RFQ

Extend material master for trading goods

Display purchase order

Create new vendor (supplier)

Create goods receipt for purchase order

Maintain quotation from vendors

Create invoice receipt from vendor

Post payment vendor

Display purchase order history

Create purchase requisition

Evaluate quotation on price

Display purchase order history

Display vendor line items

Display stock or requirement list                       

Display/Review G/L Account balances and individual line items

Verify physical receipt of goods

Sales and Distribution:

1. Identify the following as master data or transaction data

Create New Customer

Create Contact Person for Customer

Create BP relationship

Create Customer Inquiry

Create Customer Quotation

Create Sales Order Referencing a Quotation

Check Stock Status

Display Sales Order

Start Delivery Process

Check Stock Status

Pick Materials on Delivery Note

Post Goods Issue

Check Stock Status

Create Invoice for Customer

Display Billing Document and Customer Invoice

Post Receipt of Customer Payment

Review Document Flow

2. Identify the following as preventive or detective controls

Create New Customer

Create Contact Person for Customer

Create BP relationship

Create Customer Inquiry

Create Customer Quotation

Create Sales Order Referencing a Quotation

Check Stock Status

Display Sales Order

Start Delivery Process

Check Stock Status

Pick Materials on Delivery Note

Post Goods Issue

Check Stock Status

Create Invoice for Customer

Display Billing Document and Customer Invoice

Post Receipt of Customer Payment

Review Document Flow

The Katy Company engages in the manufacture and sale of books worldwide. Its income statement for the year ending June 30, 2019 and selected amounts from its June 30, 2019 balance sheet follow:

Total revenue	$320,000
Cost of revenue	120,000
Gross profit	200,000
Operating expenses	50,000
Operating income or loss	150,000
Total other income, net	3,000
Earnings before interest and taxes	153,000
Interest expense	3,000
Income before tax	150,000
Income tax expense	31,500
Net Income	$118,500
Assume the marginal tax rate is 21%.
	30-Jun-19	30-Jun-19
Total operating assets	320,000	340,000
Total operating liabilities	160,000	150,000 NOPAT RNOA NOPM Interpret the meaning of these three amounts as it applies to Katy Company.

Degreed accountants have the opportunity to obtain certifications in the accounting career field that they choose. Research and describe the types and requirements of certifications that are available. How do XBRL, blockchain, and internet privacy/security influence these professions?

A loan is taken out for $25,000 from ACME Credit Union at 9% APR, compounded monthly. The loan is to be repaid in equal monthly payments over a 5-year period.

Find the:

1) loan payment amount,

2) interest payment in the 25th period,

3) principal payment in the 25th period,

4) the unpaid principle after the 25th payment,

5) and the loan pay-off amount at the end of the 25th period

Your local athletic center is planning a $1.32 million expansion to its current facility. This cost will be depreciated on a straight-line basis over a 20-year period. The expanded area is expected to generate $624,000 in additional annual sales. Variable costs are 38 percent of sales, the annual fixed costs are $79,400, and the tax rate is 25 percent. The athletic center paid $125,000 on a feasibility study and estimates interest expenses to be $65,000 per year. The expansion of the athletic center will reduce the metered parking area and the athletic center will lose $32,000 annually from the loss in parking. What is the annual operating cash flow of this project?

Lotus Ltd has identified the following overhead costs and cost
drivers for next year
Overhead Items E ( cost) $
Setups cost 90,000
Ordering Cost 50,000
Maintenance cost 150,000
Power 30,000
Cost Driver E( actual transactions)
Number of setups 400
Number of orders 4,000
Machine Hours 25,000
Kilowatt hours 75,000
The following is one of the jobs completed during the year
Job 700 Job 701
Direct materials $1200 $600
Direct Labor $900 $400
Units completed 250 100
DLH 40 20
Number of setups 2 1
Number of orders 10 4
Machine hours 50 40
Kilowatt hours 60 25
Actual overhead $2500 $1250
The company’s practical activity is 9000 DHL

REQUIRED
Part A
1. Calculate the predetermined rate for Job 700 using FBC
based on DHL for each job
2. Calculate total product cost using FBC based on DHL for
job 700
3. Calculate the unit cost of the job
4. Is the overhead over-applied or under-applied
Part B
1. Calculate the PR for job 701 using machine hours
2. Calculate the total product cost using FBC based on machine
hours for job 701
3. Calculate the unit cost
4. Is the overhead under or over-applied?

The equity sections from OnPoint Group’s 2016 and 2017 year-end balance sheets follow. Stockholders’ Equity (December 31, 2016) Common stock—$8 par value, 120,000 shares authorized, 50,000 shares issued and outstanding $ 400,000 Paid-in capital in excess of par value, common stock 60,000 Retained earnings 330,000 Total stockholders’ equity $ 790,000 Stockholders’ Equity (December 31, 2017) Common stock—$8 par value, 120,000 shares authorized, 55,520 shares issued, 4,000 shares in treasury $ 444,160 Paid-in capital in excess of par value, common stock 115,200 Retained earnings ($64,000 restricted by treasury stock) 590,000 1,149,360 Less cost of treasury stock (64,000 ) Total stockholders’ equity $ 1,085,360 The following transactions and events affected its equity during year 2017. Jan. 5 Declared a $0.60 per share cash dividend, payable on January 10. Mar. 20 Purchased treasury stock for cash. Apr. 5 Declared a $0.60 per share cash dividend, payable on April 10. July 5 Declared a $0.60 per share cash dividend, payable on July 10. July 31 Declared a 12% stock dividend when the stock’s market value was $18 per share. Aug. 14 Issued the stock dividend that was declared on July 31. Oct. 5 Declared a $0.60 per share cash dividend, date of record October 10. need to find solve the general journal, general ledger, trial balance, cash dividends, and stock dividend

You have $1,000,000 (One million USD). This week, you will purchase the currency of a country with this amount. In Week 6, you will exchange that currency back into $ (USD). You cannot trade this currency in the intervening time – one purchase this Week and one sale in Week 6.  

For your written assignment, clearly state what you purchased and when. Write a minimum of 1 page on your prediction of what will happen with this currency exchange rate by Week 6. What besides just a guess can you use to make your prediction? What events might drive the currencies up or down in these two countries? Are there any economic, political or cultural trends or anticipated risks that might impact this rate? Any analysis that you have researched or tools that can help you in your prediction? Think of your facilitator as the CFO of your company, who knows little about this country, and how helpful your prediction will be.

Costing systems provide information that is used for a large variety of business decisions including planning production of goods and services, pricing products, and controlling associated costs of production. Thus, the choice of an appropriate costing system is a key underlying foundation for good decision making. In a response of 400-600 words address the following questions:

1. In what type of situation would a company use multiple cost accounting systems?
2. What factors should a company take into consideration in deciding whether to use job order costing or process costing?
3. Describe two products or services that might use both process and job order costing methods to determine the cost of a finished unit.

Johnson Controls Corp., a major U.S. auto parts supplier, has a manufacturing subsidiary in Nuevo Laredo, Mexico, which assembles wiring harnesses for auto electrical systems. Quarterly, Johnson Controls must consolidate the financial statements of all its foreign subsidiaries into one overall corporate-wide financial statement as required by U.S. accounting standards. This results in translation gains and losses as exchange rates fluctuate against the U.S. dollar. The Mexican peso has been particularly volatile the last few years so the Treasurer of Johnson Controls has been following the translation exposure of the Mexican subsidiary with unusual interest. Prepare the Translation Exposure Report by both the current rate and temporal methods from the balance sheet information for the Mexican subsidiary presented below (all accounts are in pesos 000’s).

Assets                                                               Liabilities                                  

Cash                             Ps 5400                         Accounts Payable                                    Ps 4600

Accounts Receivable             8750                         Bank loans                                    13800

Inventory                             12860                         Bonds                                           8370

Plant & Equipment              25430                        Common Stock                              24000

                                                                        Retained Earnings                            1670

1. If the exchange rate is Ps 14.2650/$ at the end of the next quarter, what would be the translation gain or loss by the a. current rate method and b. temporal method?
2. If the exchange rate is Ps 16.8455/$ at the end of the next quarter, what would be the translation gain or loss by the a. current rate method and b. temporal method?            

You are considering an investment for which you require a 13.5 percent rate of return. The investment costs $58,900 and will produce cash inflows of $25,000 for 3 years. Should you accept this project based on its internal rate of return? Why or why not?

A. Yes; because the IRR is 13.13 percent
B. Yes; because the IRR is 13.65 percent
C. Yes; because the IRR is 13.67 percent
D. No; because the IRR is 13.13 percent
E. No; because the IRR is 13.65 percent

F. There is no IRR for the project

CH 12 Homework

Question 4 of 5

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Blue Spruce Corp.’s comparative balance sheets are presented below:

Blue Spruce Corp. Comparative Balance Sheets December 31
		2019			2018
Cash		$ 16,600			$ 17,700
Accounts receivable		25,400			22,000
Investments		19,850			15,750
Equipment		59,750			70,050
Accumulated depreciation—equipment		(14,250	)		(10,100	)
Total		$107,350			$115,400
Accounts payable		$ 14,450			$ 11,050
Bonds payable		10,600			30,100
Common stock		50,300			45,100
Retained earnings		32,000			29,150
Total		$107,350			$115,400

Additional information:

1.		Net income was $18,450. Dividends declared and paid were $15,600.
2.		Equipment which cost $10,300 and had accumulated depreciation of $1,900 was sold for $3,500.
3.		No noncash investing and financing activities occurred during 2019.

Prepare a statement of cash flows for 2019 using the indirect method.

Compute free cash flow

Paula is considering forming her own pool service and supply company. She has decided to incorporate the business to limit her legal liability. She invests $39,000 of her own savings and receive 3,000 shares of common stock. Her first year of operations results in the following amounts at the end of the year December 31, current year: Cash in bank, $13,800; amounts due from customers for services rendered, $4,200; pool supplies inventory, $16,800; equipment, $29,900 ($5,000 in depreciation); amounts owed to a pool supply wholesaler, $5,400; loan

payable to the bank, $6,900 at 10% interest per year. She has $13,400 in retained earnings.

Paula sees next year (Year 2) sales of $71,400, wages (DL) of $25,900, cost of supplies used $10,100, other administrative expenses $6,400, and income tax expense of $5,900. She expects to pay herself a $10,000 dividend as the sole stockholder of the company. See collected all of the outstanding AR and 66,000 of current year sales.

Please make opening (end of year 1) and closing balance sheet, and an income statement.