6a:

Midgley Corporation makes a product whose direct labor standards are 1.9 hours per unit and $20.00 per hour. In April, the company produced 6,000 units using 10,930 direct labor-hours. The actual direct labor cost was $209,310.

The labor efficiency variance for April is:

$9,400 U

$9,400 F

$9,319 F

$9,428 U

6b:

Midgley Corporation makes a product whose direct labor standards are 0.9 hours per unit and $10.00 per hour. In April, the company produced 5,000 units using 4,260 direct labor-hours. The actual direct labor cost was $41,110.

The labor rate variance for April is:

$1,625 U

$1,490 F

$1,625 F

$1,490 U

6c:

Blaster, Inc., manufactures portable radios. Each radio requires 3 units of Part XBEZ52, which has a standard cost of $1.20 per unit. During May, the company purchased 12,400 units of the part for a total of $15,500. Also during May, the company manufactured 3,000 radios, using 9,900 units of part XBEZ52. The direct materials purchases variance is computed when the materials are purchased.

During May, the materials price variance for part XBEZ52 was:

$470 U

$470 F

$620 F

$620 U

Charles Maxwell is starting a cheesecake bakery, Able Baker Charlie Company, to produce and sell different flavored cheesecakes to restaurants and the general public. He has just begun his study of accounting, and is a bit confused about the many types of reports he has read about and how they will help him run his business. He asks you to help him clarify what the differences between managerial accounting and financial accounting are. He’s also wondering how to set up his inventory, how to classify the costs of his business, and how to fill in some missing information.

Managerial vs. Financial

Select whether the following characteristics are most often associated with managerial accounting or financial accounting.

Charles has provided some of the costs he expects to incur as follows. Decide on the classifications that could be applied to each of these costs using the table provided. The cost object in each case is the cheesecake.

(Select "Yes" or "No" from the below dropdowns.)

harles found some sample income statements and balance sheets on the Internet, and asked which of them might be most appropriate for a manufacturing business like his. Review income statements A and B, and balance sheets C and D. Determine which income statement and balance sheet would be most appropriate for a manufacturing business like Able Baker Charlie Company.

Income Statement A

Income Statement B

Balance Sheet C

Balance Sheet D

Which income statement is most appropriate for a manufacturing business?

Income statement A

Which balance sheet is most appropriate for a manufacturing business?

Balance sheet D

At the end of February, after the second month of operations of Able Baker Charlie Company, Charles shows you the data he’s collected, but he was unable to figure out some of the amounts. Review the following data and fill in the missing amounts on the chart for Able Baker Charlie Company. Note: It may be helpful to use T accounts to map the flow of the amounts through the manufacturing accounts and solve for the missing dollar values. It may also be helpful to review the steps for determining the cost of materials used, total manufacturing cost incurred, and cost of goods manufactured.

1. Cash Budget

   The controller of Sonoma Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following An accounting device used to plan and control resources of operational departments and divisions.budget information:

   	May		June		July
   Sales	$86,000		$90,000		$95,000
   Manufacturing costs	34,000		39,000		44,000
   Selling and administrative expenses	15,000		16,000		22,000
   Capital expenditures	_		_		80,000

   The company expects to sell about 10% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month following the sale and the remainder the following month (second month following sale). Depreciation, insurance, and property tax expense represent $3,500 of the estimated monthly manufacturing costs. The annual insurance premium is paid in September, and the annual property taxes are paid in November. Of the remainder of the manufacturing costs, 80% are expected to be paid in the month in which they are incurred and the balance in the following month.

   Current assets as of May 1 include cash of $33,000, marketable securities of $40,000, and accounts receivable of $90,000 ($72,000 from April sales and $18,000 from March sales). Sales on account for March and April were $60,000 and $72,000, respectively. Current liabilities as of May 1 include $6,000 of accounts payable incurred in April for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of $14,000 will be made in June. Sonoma’s regular quarterly dividend of $5,000 is expected to be declared in June and paid in July. Management wants to maintain a minimum cash balance of $30,000.

   Required:

   1. Prepare a monthly cash budget and supporting schedules for May, June, and July 2016. Input all amounts as positive values except overall cash decrease and deficiency which should be indicated with a minus sign.

   Sonoma Housewares Inc.
   Cash Budget
   For the Three Months Ending July 31
   	May	June	July
   Estimated cash receipts from:
   Cash sales	$	$	$
   Collection of accounts receivable
   Total cash receipts	$	$	$
   Estimated cash payments for:
   Manufacturing costs	$	$	$
   Selling and administrative expenses
   Capital expenditures
   Other purposes:
   Income tax
   Dividends
   Total cash payments	$	$	$
   Cash increase or (decrease)	$	$	$
   Cash balance at beginning of month
   Cash balance at end of month	$	$	$
   Minimum cash balance
   Excess or (deficiency)	$	$	$

Colah Company purchased $1.5 million of Jackson, Inc. 8% bonds at par on July 1, 2018, with interest paid semi-annually. When the bonds were acquired Colah decided to elect the fair value option for accounting for its investment. At December 31, 2018, the Jackson bonds had a fair value of $1.75 million. Colah sold the Jackson bonds on July 1, 2019 for $1,350,000.

Required: 1. Prepare Colah's journal entries for the following transactions:

a. The purchase of the Jackson bonds on July 1.

b. Interest revenue for the last half of 2018.

c. Any year-end 2018 adjusting entries.

d. Interest revenue for the first half of 2019.

e. Any entry or entries necessary upon sale of the Jackson bonds on July 1, 2019.

2. Fill out the following table to show the effect of the Jackson bonds on Colah’s net income, other comprehensive income, and comprehensive income for 2018, 2019, and cumulatively over 2018 and 2019:

On 21 June 20x1, the Large Mart store in Armidale ordered a new company car for its customer service department (called the “Nerd Herd”) from a car dealer in Brisbane for $30,000. The car was delivered to Large Mart on 20 June 20x1. On that day, Large Mart sent the car to one of its suppliers who painted a large “Large Mart” sign on the side of the car. The Large Mart sign on the car cost $500 and was paid in cash on 25 June 20x1. The car was returned to Large Mart on 25 June 20x1 and Large Mart started to use the car on that day. Large paid for the car using the CEO’s credit card, and the car dealer charged a transaction fee of $450 for the use of that credit card. Large Mart will use the new car for 8 years and depreciate the car using the straight-line depreciation. Large Mart expects that the car will have a residual value of zero at the end of its useful life. Required: a) Determine if the cost of painting the “Large Mart” sign on the car and the credit card payment surcharge influence the cost of the car when it is first recognised as an asset in the Large Mart accounts, AND provide an in-depth reflection of the reasons that you have used to make this decision. b) Provide all journal entries that are necessary in the books of Large Mart to account for the purchase of the car during June 20x1 – ASSUMING that Large Mart records all Credit Card transactions as “Cash at Bank” payments. (1 mark) c) Provide all journal entries that are necessary in the books of Large Mart to account for the depreciation of the car for the month of June 20x1, AND provide a detailed outline of your calculations.

Periodic Inventory by Three Methods; Cost of Merchandise Sold

The units of an item available for sale during the year were as follows:  

Jan 1. Inventory- 50 units at $94
Mar 10. Purchase- 70 units at $106
Aug 30. Purchase- 20 units at $114
Dec 12. Purchase- 60 units at $120

There are 60 units of the item in the physical inventory at December 31. The periodic inventory system is used.  

Determine the inventory cost and the cost of merchandise sold by three methods.

First-in, first-out (FIFO) :
Merchandise Inventory=
Merchandise Sold=

Last-in, first-out (LIFO) :
Merchandise Inventory=
Merchandise Sold=

Weighted average cost :
Merchandise Inventory=
Merchandise Sold=

The partnership of Larson, Norris, Spencer, and Harrison has decided to terminate operations and liquidate all business property. During this process, the partners expect to incur $8,000 in liquidation expenses. All partners are currently solvent.

The balance sheet reported by this partnership at the time that the liquidation commenced follows. The percentages indicate the allocation of profits and losses to each of the four partners.

Based on the information provided, prepare a predistribution plan for liquidating this partnership.

Select one manufacturer and one service business that you are familiar with and indicate what would be included in the three types of inventory accounts. Use details that are unique to your businesses. As my example:

Manufacturer:

Raw Materials Inventory:

Work in Process Inventory:

Finished Goods Inventory:

Service Business:

Raw Materials Inventory:

Work in Process Inventory:

Finished Goods Inventory:

Preparing Adjusting Entries, Financial Statements, and Closing Entries

Murdock Carpet Cleaners ended its first month of operations on June 30, 2015. Monthly Financial

statements will be prepared. The unadjusted account balances are as follows.

MURDOCK CARPET CLEANERS

Unadjusted Trial Balance

June 30, 2015

Debit Credit

Cash ........................................................ $ 1,180

Accounts receivable............................................ 450

Prepaid rent .................................................. 3,100

Supplies ..................................................... 2,520

Equipment ................................................... 4,440

Accounts payable.............................................. $ 760

Common stock................................................ 2,000

Retained earnings ............................................. 5,300

Service fees earned ............................................ 4,650

Wages expense ............................................... 1,020

$12,710 $12,710

The following information is available.

1. The balance in Prepaid Rent was the amount paid on June 1 for the rst four months’ rent.

2. Supplies available at June 30 were $820.

3. Equipment, purchased June 1, has an estimated life of ve years.

4. Unpaid and unrecorded employee wages at June 30 were $210.

5. Utility services used during June were estimated at $300. A bill is expected early in July.

6. Fees earned for services performed but not yet billed on June 30 were $380. The company uses

the account Accounts Receivable to reect amounts due but not yet billed.

REQUIRED

a. Prepare its adjusting entries at June 30, 2015 using the nancial statement effects template.

b. Prepare its adjusting entries at June 30, 2015 in journal entry form.

c. Set up T-accounts, enter the balances above, and post the adjusting entries to them.

d. Prepare its income statement for June and its balance sheet at June 30, 2015.

e. Prepare entries to close its temporary accounts in journal entry form and post the closing en-

tries to the T-accounts.

Jiffy Lube oil and Danterra Beauty/Spa Salon are both service provider organizations, do a "Comparison/Contrast" for job order cost (i.eg, direct material, direct labor and overhead cost, etc.) Please be detailed.

The Town of Weston has a Water Utility Fund with the following trial balance as of July 1, 2016, the first day of the fiscal year:

During the year ended June 30, 2017, the following transactions and events occurred in the Town of Weston Water Utility Fund:

1. Accrued expenses at July 1 were paid in cash.
2. Billings to nongovernmental customers for water usage for the year amounted to $1,381,000; billings to the General Fund amounted to $109,000.
3. Liabilities for the following were recorded during the year:

4. Materials and supplies were used in the amount of $276,000, all for costs of sales and services.
5. $14,100 of old accounts receivable were written off.
6. Accounts receivable collections totaled $1,472,400 from nongovernmental customers and $48,700 from the General Fund.
7. $1,041,400 of accounts payable were paid in cash.
8. One year’s interest in the amount of $176,100 was paid.
9. Construction was completed on plant assets costing $252,000; that amount was transferred to Utility Plant in Service.
10. Depreciation was recorded in the amount of $262,100.
11. Interest in the amount of $25,200 was reclassified to Construction Work in Progress. (This was previously paid in item 8.)
12. The Allowance for Uncollectible Accounts was increased by $10,000.
13. As required by the loan agreement, cash in the amount of $102,000 was transferred to Restricted Assets for eventual redemption of the bonds.
14. Accrued expenses, all related to costs of sales and services, amounted to $90,000.
15. Nominal accounts for the year were closed.

Required:
a. Record the transactions for the year in general journal form.
b. Prepare a Statement of Revenues, Expenses, and Changes in Fund Net Position.
c. Prepare a Statement of Net Position as of June 30, 2017.
d. Prepare a Statement of Cash Flows for the year ended June 30, 2017. Assume all debt and interest are related to capital outlay. Assume the entire construction work in progress liability (see item 3) was paid in entry 7. Include restricted assets as cash and cash equivalents.

Exercise 3.9 Variable, Fixed, and Mixed Costs Classify the following costs of activity inputs as variable, fixed, or mixed. Identify the activity and the associated activity driver that allow you to define the cost behavior. For example, assume that the resource input is “cloth in a shirt." The activity would be "sewing shirts," the cost behavior "variable," and the activity driver "units produced." Prepare your answers in the following format: Activity Cost Behavior Activity Driver a. Flu vaccine b. Salaries, equipment, and materials used for moving materials in a factory c. Forms used to file insurance claims d. Salaries, forms, and postage associated with purchasing e. Printing and postage for advertising circulars f. Equipment, labor, and parts used to repair and maintain production equipment g. Power to operate sewing machines in a clothing factory h. Wooden cabinets enclosing audio speakers i. Advertising j. Sales commissions k. Fuel for a delivery van l. Depreciation on a warehouse m. Depreciation on a forklift used to move partially completed goods n. X-ray film used in the radiology department of a hospital o. Rental car provided for a client

Sheridan Company’s balance sheet at December 31, 2016, is presented below.

During January 2016, the following transactions occurred. Sheridan Company uses the perpetual inventory method.

- Prepare an adjusted trial balance at January 31, 2017. (Round answers to 0 decimal places, e.g. 1,250.)

- Prepare an income statement.

- Prepare a balance sheet as of January 31, 2017

THANK YOU!

Badoni Corporation has provided the following data for its two most recent years of operation:

Selling price per unit $ 85

Manufacturing costs:

Variable manufacturing cost per unit produced:

Direct materials $ 10

Direct labor $ 6

Variable manufacturing overhead $ 4

Fixed manufacturing overhead per year $ 96,000

Selling and administrative expenses:

Variable selling and administrative expense per unit sold $ 5

Fixed selling and administrative expense per year $ 77,000

The net operating income (loss) under variable costing in Year 2 is closest to:

a. $180,000

b. $195,000

c. $59,000

d.$7,000

2 page paper that details proper audit client acceptance and continuance procedures.

please provide proper citation