The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:

Units to be produced:

1st Quarter = 5,400
2nd Quarter = 8,400
3rd Quarter = 7,400
4th Quarter = 6,400

In addition, 6400 grams of raw materials inventory is on hand at the start of the 1st Quarter and the beginning accounts payable for the 1st Quarter is 3280. Each unit requires 8.40 grams of raw material that costs $1.40 per gram. Management desires to end each quarter with an inventory of raw materials equal to 30% of the following quarter's production needs. The desired ending inventory for the 4th Quarter is 8400 grams. Management plans to pay for 50% of raw material purchases in the quarter acquired and 50% in the following quarter. Each unit requires 0.30 direct labor-hours and direct laborers are paid $10.70 per hour.

1.Prepare the company's direct materials budget for the upcoming fiscal year (Round "Unit cost of raw materials" answers to 2 decimal places).
2.Prepare a schedule of expected cash disbursements for purchases of materials for the upcoming fiscal year.
3.Prepare the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced. (Round "Direct labor-hours per unit" and "Direct labor cost per hour" answers to 2 decimal places.)

Define the difference between current and long term liabilities. Creditors use several measures to assess a company's creditworthiness, such as working capital, current ratio, payables turnover, and days' payable. Discuss what these measures are and why it's important to carefully measure cash flows related to current liabilities.

On May 8, 2015, Jett Company (a U.S. company) made a credit sale to Lopez (a Mexican company). The terms of the sale required Lopez to pay 1,340,000 pesos on February 10, 2016. Jett prepares quarterly financial statements on March 31, June 30, September 30, and December 31. The exchange rates for pesos during the time the receivable is outstanding follow.

Compute the foreign exchange gain or loss that Jett should report on each of its quarterly statements for the last three quarters of 2015 and the first quarter of 2016

Compute the amount reported on Jett's balance sheets at the end of its last three quarters

Calculating Weighted-Average Cost Inventory Values The Brattle Corporation began operations in 2018. Information relating to the company’s purchases of inventory and sales of products for 2018 and 2019 is presented below.

2018

March 1 Purchase 220 units @ $12 per unit

June 1 Sold 120 units @ $25 per unit

September 1 Purchase 100 units @ $15 per unit

November 1 Sold 130 units @ $25 per unit

2019

March 1 Purchase 70 units @ $16 per unit

June 1 Sold 80 units @ $30 per unit

September 1 Purchase 100 units @ $18 per unit

November 1 Sold 90 units @ $35 per unit

Calculate the weighted-average cost of goods sold and ending inventory for 2018 and 2019 assuming use of (a) the periodic method and (b) the perpetual method.

a. Weighted-Average Periodic. Do not round your cost per unit. Do not round until your final answer. Round your answers to the nearest whole number.

2018

Cost of goods sold ___3,234_______

Ending inventory _____906_____

2019

Cost of goods sold ____3,195______

Ending inventory ______945____

b. Weighted-Average Perpetual. Do not round your cost per unit. Do not round until your final answer. Round your answers to the nearest whole number.

2018

Cost of goods sold _____3,195_____

Ending inventory _____945_____

2019

Cost of goods sold __________?

Ending inventory __________?

Dividends Per Share

Seventy-Two Inc., a developer of radiology equipment, has stock outstanding as follows: 80,700 shares of cumulative preferred 3% stock, $15 par, and 400,000 shares of $24 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $57,000 ; second year, $77,200 ; third year, $80,900 ; fourth year, $100,600 .

Calculate the dividends per share on each class of stock for each of the four years. Round all answers to two decimal places. If no dividends are paid in a given year, enter "0".

Assume that Smukers manufactures and sells 15,000 cases of jelly each year. The following data are available for the third quarter:

Total fixed manufacturing overhead..................$45,000

Fixed selling and administrative expenses.......10,000

Sales price per case.........................................32

Direct materials per case ................................12

Direct labor per case........................................ 6

Variable manufacturing overhead per case..... 3

REQUIRED:

1. Compare the cost per case under both absorption costing and variable costing.
2. Compute net income under both absorption costing and variable costing.
3. Reconcile any differences in income. Explain.

HB ltd has been experiencing dwindling sales in its business operations due to competitions from other agents dealing in communication equipment. On 1 January 2006, HB Ltd decided to diversify its operations to the information technology (IT) industry by acquiring SL Ltd, a company dealing in the manufacture of IT equipment and software design.

The summarized financial statements of HB Ltd and SL Ltd were as follows:

Income statement for the year ended 30September 2006

Statement of financial position as at 30 September 2006

                                                       10,000        3,600

Total equity and liabilities            45,600        16,000

Additional information:

1. HB ltd acquired 80% of ordinary share capital of SL ltd for sh. 10,280,000 and also acquired half of the 10% debentures in the company.
2. The fair value of the assets of SL Ltd at the date of acquisition were the same as their book values except for plant whose fair value were more by sh. 3.2 million. As at 1 January 2006, the plant had a remaining useful life of four years. SL Ltd depreciates plant on straight line basis on cost.
3. During the post-acquisition period, HB Ltd sold goods to SL Ltd for sh 12 million. These goods had a cost HB Ltd sh 9 million. Subsequently, SL Ltd sold some of the goods purchased from HB at sh 10 million for 15 million.
4. On 30 June 2006, HB Ltd and SL Ltd paid dividends of sh 1000,000 and 500,000 respectively.
5. Included in the account receivables and payables is sh 750,000 being the amount SL Ltd owed HB Ltd.
6. Goodwill is considered to be impaired by 25% as at September 2006. Goodwill impairment is classified as an administrative expense by the group company.

Required

1. Group Income statement for the year ended 30 September 2006.
2. Group Statement of financial position as at 30 September 2006.

Fox Company manufactures a specialty brass hardware item that it sells to com-

panies that use it as an attachment for the garden hoses they manufacture. During the most recent

month, there were 1,500,000 units in opening inventory. During the month 6,000,000 units were

entered into production and 7,000,000 were completed. The units in ending inventory were 100%

complete with respect to materials costs and 90% complete with respect to conversion costs. The

accounting records show that there were $3,000,000 of materials costs and $750,000 of conver-

sion costs in opening inventory, and in the current month, materials costs of $11,250,000 and

conversion costs of $5,955,000 were added.

Required

(a) Compute the cost per equivalent unit for materials.

(b) Compute the cost per equivalent unit for conversion.

(c) Compute the materials cost in ending work in process.

(d) Compute the conversion cost in ending work in process.

(e) Compute the material costs transferred out.

(f) Compute the conversion cost transferred out

Assume the company has investments in debt securities. One is classified as a trading security and the other is classified as an available-for-sale security. Create a scenario where it is year end and the investments have changed in fair market value. Describe the scenario and explain how the financial statements would be affected. Be detailed and include numbers in the examples. Include any applicable journal entries.

CR Black has supplied the following data for use in its activity based costing system:

Overhead Costs:

Wages and Salaries $ 700,000 Other Overhead Costs $ 400,000 Total Overhead Costs $1,100,000

Activity Cost Pool:

Direct Labor Support

Order Processing

Customer Support

Other

Activity Measure:

Number of direct labor-hours

Number of orders

Number of Customers

This is an organizationSustaining activity

Total Activity:

10,000 DLHs

500 Orders

100 customers

Not applicable

Selling Price $700 per unit Units Ordered 100 units Direct materials $350 per unit Direct labor-hours (DLH) 0.5 DLH per unit Direct labor rate $25 per DLH

Distribution of Resource Consumption across Activities

During the year, CR Black completed an order for a special optical switch for a new customer, Gucwa Telecom. The customer did not order any other products during the year. Data concerning that order follow:

Data concerning the Calandra Telecom Order

5) Prepare a report showing the overhead costs for the order from Calandra, including customer support costs, and prepare a report showing the customer margin for Calandra Telecom.

Please show all work!!

Marvel Parts, Inc., manufactures auto accessories. One of the company’s products is a set of seat covers that can be adjusted to fit nearly any small car. The company has a standard cost system in use for all of its products. According to the standards that have been set for the seat covers, the factory should work 1,075 hours each month to produce 2,150 sets of covers. The standard costs associated with this level of production are:

During August, the factory worked only 800 direct labor-hours and produced 2,500 sets of covers. The following actual costs were recorded during the month:

At standard, each set of covers should require 3.0 yards of material. All of the materials purchased during the month were used in production.

Required:

1. Compute the materials price and quantity variances for August.

2. Compute the labor rate and efficiency variances for August.

3. Compute the variable overhead rate and efficiency variances for August.

Exercise 11-8 Volume Trade-Off Decisions [LO11-5, LO11-6]

Barlow Company manufactures three products—A, B, and C. The selling price, variable costs, and contribution margin for one unit of each product follow:

The same raw material is used in all three products. Barlow Company has only 6,000 pounds of raw material on hand and will not be able to obtain any more of it for several weeks due to a strike in its supplier’s plant. Management is trying to decide which product(s) to concentrate on next week in filling its backlog of orders. The material costs $8 per pound.

Required:

1. Calculate the contribution margin per pound of the constraining resource for each product.

2. Assuming that Barlow has unlimited demand for each of its three products, what is the maximum contribution margin the company can earn when using the 6,000 pounds of raw material on hand?

3. Assuming that Barlow’s estimated customer demand is 500 units per product line, what is the maximum contribution margin the company can earn when using the 6,000 pounds of raw material on hand?

4. A foreign supplier could furnish Barlow with additional stocks of the raw material at a substantial premium over the usual price. Assuming Barlow’s estimated customer demand is 500 units per product line and that the company has used its 6,000 pounds of raw material in an optimal fashion, what is the highest price Barlow Company should be willing to pay for an additional pound of materials?

E2-6 (Algo) Finding Unknown Values in the Cost of Goods Manufactured Report [LO 2-3, 2-6]

Mulligan Manufacturing Company uses a job order cost system with overhead applied to products at a rate of 150 percent of direct labor cost.

Required:
Treating each case independently, selected from the manufacturing data given below, find the missing amounts. You should do them in the order listed. (Hint: For the manufacturing costs in Case 3, first solve for conversion costs and then determine how much of that is direct labor and how much is manufacturing overhead.) (Do not round your intermediate calculations. Round your final answers to the nearest whole dollar. Enter all amounts as positive values.)

In October 2017, Nicole of Nicole’s Getaway Spa (NGS) eliminated all existing inventory of cosmetic items. The trouble of ordering and tracking each product line had exceeded the profits earned. In December, a supplier asked her to sell a prepackaged spa kit. Feeling she could manage a single product line, Nicole agreed. NGS would make monthly purchases from the supplier at a cost that included production costs and a transportation charge. The spa would use a perpetual inventory system to keep track of its new inventory.
  
    On December 30, 2017, NGS purchased ten units at a total cost of $7.00 per unit. NGS purchased thirty more units at $9.00 in February 2018, but returned five defective units to the supplier. In March, NGS purchased fifteen units at $11.00 per unit. In May, fifty units were purchased at $11.00 per unit; however, NGS took advantage of a 2.00/10, n/30 discount from the supplier. In June, NGS sold fifty units at a selling price of $12.90 per unit and thirty-five units at $10.90 per unit.


Required:
1. State whether the transportation cost included in each purchase should be recorded as a cost of the inventory or immediately expensed.

• Immediately expensed

• Inventory cost

2. Compute the Cost of Goods Available for Sale, Cost of Goods Sold, and Cost of Ending Inventory using the first-in, first-out (FIFO) method. (Do not round intermediate calculations. Round final answers to the nearest dollar amount.)

3-a. Calculate the inventory turnover ratio, using the inventory on hand at December 31, 2017, as the beginning inventory. (Round your answer to 1 decimal place.)