Which of the following is true of variable costing?

1. It expenses administrative costs as costs of goods sold
2. It is required for external reporting to shareholders
3. It treats direct manufacturing costs as a product cost
4. It includes fixed manufacturing overhead as an inventoriable cost

Tauton Company uses the high low to estimates its cost function. The information for 2017 is provided below:

Machine hour’s                costs

Highest observation of cost driver                            4000                                      332000

Lowest observation of cost driver                            3000                                       312000

What is the estimated total cost when 1900 machine hours are used?

1. 509600
2. 290000
3. 157700
4. 489700

Quantum Company uses the high low method to estimate the cost function the information for 2017 is provided below:

Machine hour’s                                costs

Highest observation of cost driver                            1000                                      32000

Lowest observation of cost driver                            200                                        16000

What is the constant for the estimated cost equation?

1. 12000
2. 32000
3. 16000
4. 20000

Which cost estimating method uses time and motion studies to reveal that to make a high quality men’s suit jacket it takes of 3 hours of direct labor effort per jacket and 5 minutes of a salaried manager to perform quality control?

A. the accrual accounting method

B .the industrial engineering method

C .the cash accounting method

D .the high low method

Question A:

The costs per equivalent unit of direct materials and conversion in the Bottling Department of Rocky Springs Beverage Company are $1.25 and $0.65, respectively. The equivalent units to be assigned costs are as follows:

	Equivalent Units
	Direct Materials		Conversion
Inventory in process, beginning of period	0		2,500
Started and completed during the period	50,000		50,000
Transferred out of Bottling (completed)	50,000		52,500
Inventory in process, end of period	5,000		2,500
Total units to be assigned costs	55,000		55,000

The beginning work in process inventory had a cost of $1,550. Determine the cost of completed and transferred-out production and the ending work in process inventory. If required, round to the nearest dollar.

Completed and transferred-out production	$
Inventory in process, ending	$

Question B:

Dividing Partnership Net Income

Required:

Steve Conyers and Chelsy Poodle formed a partnership, dividing income as follows:

1. Annual salary allowance to Poodle of $170,500.
2. Interest of 6% on each partner's capital balance on January 1.
3. Any remaining net income divided to Conyers and Poodle, 1:2.

Conyers and Poodle had $77,600 and $75,000, respectively, in their January 1 capital balances. Net income for the year was $310,000. How much is distributed to Conyers and Poodle?

Note: Compute partnership share to two decimal places. Round final answers to the nearest whole dollar.
Conyers: $
Poodle: $

PS: 48144(Conyers) and 261896(Poodle) - are not the correct answer and I need the correct answer. thank you

Cost of Units Completed and in Process

The charges to Work in Process—Assembly Department for a period, together with information concerning production, are as follows. All direct materials are placed in process at the beginning of production.

Work in Process—Assembly Department
Bal., 7,000 units, 55% completed	19,110	To Finished Goods, 161,000 units	?
Direct materials, 165,000 units @ $1.3	214,500
Direct labor	323,500
Factory overhead	125,760
Bal. ? units, 30% completed	?

a. Based on the above data, determine the different costs listed below.

If required, round your interim calculations to two decimal places.

1. Cost of beginning work in process inventory completed this period.	$
2. Cost of units transferred to finished goods during the period.	$
3. Cost of ending work in process inventory.	$
4. Cost per unit of the completed beginning work in process inventory, rounded to the nearest cent.	$

b. Did the production costs change from the preceding period?
Yes

c. Assuming that the direct materials cost per unit did not change from the preceding period, did the conversion costs per equivalent unit increase, decrease, or remain the same for the current period?
Increase

Riverbed Company provides the following information about its defined benefit pension plan for the year 2017.

Service cost		$89,800
Contribution to the plan		107,000
Prior service cost amortization		10,700
Actual and expected return on plan assets		65,200
Benefits paid		40,100
Plan assets at January 1, 2017		647,500
Projected benefit obligation at January 1, 2017		707,800
Accumulated OCI (PSC) at January 1, 2017		147,500
Interest/discount (settlement) rate		9	%

Prepare a pension worksheet inserting January 1, 2017, balances, showing December 31, 2017. (Enter all amounts as positive.)

RIVERBED COMPANY Pension Worksheet—2017.

General Journal Entries

Memo Record

Items

Annual Pension Expense

Cash

OCI Prior Service Cost

Pension Asset/ Liability

Projected Benefit Obligation

Plan Assets

Prepare the journal entry recording pension expense. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.

McMurray & Sons is a retailer of stuffed animals.   All items in the store sell for the same $18 selling

price. McMurray estimates that 25% of its sales are for cash and 75% are on account. Other

information regarding the company's budgeted sales and collection of credit sales are as follows:

Budgeted sales in units			Credit Sales Collection Pattern
December	9,000		Collected in same month as sale	50%
January	1,000		Collected 1 months following sale	50%
February	2,000
March	2,500
April	3,000

McMurray buys its animals from one supplier at a cost of $6 per animal. It pays for all of its

merchandise purchases in the month following purchase. McMurray began January with 100

stuffed animals in inventory. The company has an purchases budget policy of having 10% of the

following month's anticipated sales in stock at the end of every month. December's purchases

totaled $49,200.

McMurray's monthly expenses are as follows:
	$       1,500	Depreciation of store building & fixtures
	10,000	Salaries and other payroll items
	2,500	Advertising
	2,000	Utilities
	7,000	Other operating expenses
	$      23,000

In addition to these expenses, McMurray pays insurance premiums of $4,000 in January and

June, and pays $5000 in property taxes every February.

McMurray began January with $25,000 in its bank account. The company maintains a minimum cash

balance of $25,000. An open line of credit is available from the company's bank to bolster its cash

position when needed. Any excess cash over $25,000 should be applied against monies

borrowed. (Ignore interest)

REQUIRED:

(1) Prepare a schedule of cash collections for January, February, and March.

(2) Prepare a merchandise purchases budget for January, February, and March.

(3) Prepare a cash budget for January, February, and March.

Dr. Jun bought a $330000 house 7 years ago. The house is now worth $627000. Originally, the house was financed by paying 35% down with the rest financed through a 20-year mortgage at 6% interest. After making 84 monthly house payments, he is now in need of cash, and would like to refinance the house. The finance company is willing to loan 85% of the current value of the house amortized over 25 years at 4% interest.

How much cash will Dr. Jun receive after paying the balance of the original loan?

Amount of cash obtained = $__________

If he uses all of the available cash for something other than investing in his home, by how much will his monthly payment increase?

Increase in monthly payment = $__________

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

ACCOUNT Work in Process—Baking Department							ACCOUNT NO.
Date		Item	Debit		Credit		Balance
							Debit		Credit
Mar.	1	Bal., 6,000 units, 2/3 completed					13,800
	31	Direct materials, 108,000 units	194,400				208,200
	31	Direct labor	55,860				264,060
	31	Factory overhead	31,420				295,480
	31	Goods finished, 109,500 units			284,500		10,980
	31	Bal. ? units, 4/5 completed					10,980

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

1. Direct materials cost per equivalent unit	$
2. Conversion cost per equivalent unit	$
3. Cost of the beginning work in process completed during March	$
4. Cost of units started and completed during March	$
5. Cost of the ending work in process	$

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?
Increase

Company: Campbell Soup

What inventory costing method does the company use (LIFO/FIFO, etc) in 2018? Do you think it is appropriate?

What are the key raw materials in 2018?

Are there supply or price change risks associated with the raw materials?

On January 1 2000 The Patriot Company purchased all of the stock of the Chief Company at book value
Patriot accounts for its investment in Chief using the initial value method and Chief does not pay dividends
On January 1, 2014 Patriot Company issued (sold) $500,000 8% semi-annual bonds for $530,000
These 20 year bonds pay interest on July 1 and January 1 of each year. Patriot uses straight-line amortization
On January 1, 2019 Chief Company purchased the Patriot bonds for $485000. Chief also uses straight-line
amortization
REQUIRED:
e) make the necessary worksheet entries needed in 2019
f) In 2019, Patriot reported income of $300,000 (unconsolidated) and Chief reported income
of $25,000. What is consolidated income?
g) make the necessary worksheet entries needed in 2020
h) in 2020, Patriot reported income of $300,000 (unconsolidated) and Chief reported income
of $25,000. What is consolidated income?

Problem 6-Lump sum issuance of stock.PMP Corporation has issued 4,000 shares of common stock and 300 shares of preferred stock for a lump sum of $100,000 cash.Instructions(round to nearest dollar)

(a)Give the entry for the issuance assuming the par value of the common stock was $5 and thefair value $25, and the par value of the preferred stock was $20 and the fair value $40. (Each valuation is on a per share basis and there are ready markets for each stock.)

(b)Give the entry for the issuance assuming the same facts as (a) above except the commonstock has no ready market and the preferred stock has a fair value of $45per share.

Complete the following questions. In addition to answering the items below, you must submit an analysis of the assignment. Analyze the specific outcomes and write an analysis directed toward the team at BAJA Corporation describing what the numbers mean and how they relate to the business. Submit journal entries in the Excel file included in the module section and written segments in an MS Word document. For written answers, please make sure your responses are well-written, formatted per CSU-Global Guide to Writing and APA (Links to an external site.)Links to an external site. and have proper citations, where applicable.

On January 1, 2017, BAJA Corporation purchased bonds with a face value of $600,000 for $616,747.06 The bonds are due June 30, 2020, carry a 13% stated interest rate, and were purchased to yield 12%. Interest is payable semiannually on June 30 and December 31. On March 31, 2018, in contemplation of a major acquisition, the company sold one-half the bonds for $319,000 including accrued interest; the remainder were held until maturity.

1. Prepare an investment interest income and bond premium amortization schedule using the effective interest method.
2. Prepare the journal entries to record the purchase of the bonds.
3. Prepare the journal entries to record each interest payment.
4. Prepare the journal entries to record the partial sale of the investment on March 31, 2018, and the retirement of the bond issue on June 30, 2020.

I understand how to prepare the journal entries and the amortization schedule. I am just curious about how the partial sale on March 31, 2018 affects those entries? Do I have to revise my amortization schedule? It will change the rest of the journal entries as well right?

Exercise 13-8 Selected Financial Ratios [LO13-2, LO13-3, LO13-4]

The financial statements for Castile Products, Inc., are given below:

Castile Products, Inc. Balance Sheet December 31
Assets
Current assets:
Cash				$	22,000
Accounts receivable, net					250,000
Merchandise inventory					400,000
Prepaid expenses					9,000
Total current assets					681,000
Property and equipment, net					860,000
Total assets				$	1,541,000
Liabilities and Stockholders' Equity
Liabilities:
Current liabilities				$	230,000
Bonds payable, 11%					310,000
Total liabilities					540,000
Stockholders’ equity:
Common stock, $5 par value				$	150,000
Retained earnings					851,000
Total stockholders’ equity					1,001,000
Total liabilities and equity				$	1,541,000

Castile Products, Inc. Income Statement For the Year Ended December 31
Sales	$	2,940,000
Cost of goods sold		1,384,500
Gross margin		1,555,500
Selling and administrative expenses		600,000
Net operating income		955,500
Interest expense		34,100
Net income before taxes		921,400
Income taxes (30%)		276,420
Net income	$	644,980

Account balances at the beginning of the year were: accounts receivable, $170,000; and inventory, $310,000. All sales were on account.

Required:

Compute the following financial data and ratios:

1.	Working capital.

       

2.	Current ratio. (Round your answer to 2 decimal places.)

        

3.	Acid-test ratio. (Round your answer to 2 decimal places.)

        

4.	Debt-to-equity ratio. (Round your answer to 2 decimal places.)

      

5.	Times interest earned ratio. (Round your answer to 2 decimal places.)

       

6.	Average collection period. (Use 365 days in a year. Round your answer to 1 decimal place.)

       

7.	Average sale period. (Use 365 days in a year. Round your intermediate and final answer to 1 decimal place.)

       

8.	Operating cycle. (Round your intermediate calculations and final answers to 1 decimal place.)

       

Briefly discuss some of the indicators of an outdated costing system (Word limit: 200 words) b) Despite the obvious advantages of ABC, many firms are still reluctant to implement it. What are the reasons for this reluctance? (Word limit: 150 words)

Accounting fraud was a hot area and sensitive for the SEC in the early 2000s following a barrage of scandals at companies such as Enron, Worldcom and Parmalat to mention a few. In your opinion what is the significance of Sarbanes-Oxley Act of 2002 in combating accounting fraud in public companies?

Computing Depreciation Expense.

Equipment costing $810,000, with an expected scrap value of $100,000 and an estimated useful life of six years, was purchased on January 1 of the current year.

Required: Calculate the depreciation expense for the first two years of the asset’s useful life using (a) the straight-line method and (b) the double-declining balance method. Which method would you prefer to use for (a) income tax purposes and (b) financial reporting purposes? Why?

Please show all steps.