|
Hielta Oy, a Finnish company, processes wood pulp for various manufacturers of paper products. Data relating to tons of pulp processed during June are provided below: |
|
Percent Completed |
|||
| Tons of Pulp | Materials | Labor and Overhead | |
| Work in process, June 1 | 81,700 | 82% | 25% |
| Work in process, June 30 | 51,900 | 46% | 17% |
| Started into production during June | 300,600 | ||
| Required: |
| 1. |
Compute the number of tons of pulp completed and transferred out during June. |
| 2. | Compute the equivalent units of production for materials and for labor and overhead for June. |
In: Accounting
Chapter 7 Exercise
Hamilton Company (a U.S. based company) acquired 100% of a Swiss company, Franco AG, for 8.2 million Swiss francs on December 30, Year 1. At the date of acquisition, the exchange rate was $0.70 per franc. The acquisition price is attributable to the flowing assets and liabilities denominated in Swiss francs:
|
Cash |
1,000,000 |
à |
Common Stock |
8,200,000 |
|
Inventory (@ cost) |
2,000,000 |
|||
|
Fixed Assets |
7,000,000 |
|||
|
Notes Payable |
(1,800,000) |
Hamilton Corporate prepares consolidated financial statements on December 31, Year 1. By that date, the Swiss franc appreciated to $0.75. Because of the year-end holidays, no transactions took place between the date of acquisition and the end of the year.
Assignment:
In: Accounting
Explain the following two answers in detail: -
A. In an article that appeared in The Australian Financial Review on 26 August 2011 ('Apple could easily flounder without its founder' by Mark Ritson), it was reported:
The news that Steve Jobs has resigned from Apple and will be replaced as CEO by Tim Cook made global headlines yesterday What has followed since has been a frenzied discussion of what the loss of Jobs will mean for new product development timelines, share price issues and corporate culture. Apple's share price fell 5 per cent on the news of the resignation as questions were raised about Apple's prospects without its creative guru at the helm. But the real question for Apple as it enters its post-Jobs period is how well the brand will survive without the founder.
Required: - The fact that the share prices fell following the departure of Steve Jobs is consistent with the view that Jobs was an 'asset' to the company. How do you think this 'asset' would have been disclosed in the financial statements of Apple?
B. What is a contingent asset?
When should a contingent asset be disclosed within the notes to the financial statements?
If something is initially disclosed as a contingent asset, when can it subsequently be recognised as an asset within the financial statements? Briefly explain.
In: Accounting
Thomas Company acquired machinery on January 2, 2016, which it depreciated under the straight-line method with an estimated life of fifteen years and no salvage value. On January 1, 2020, Thomas estimated that the remaining life of this machinery was six years with no salvage value. How should this change be accounted for by Thomas?
Group of answer choices
by continuing to depreciate the machinery over the original fifteen year life
as a prior period adjustment
as a change in accounting principle in 2020
by setting future annual depreciation equal to one-sixth of the machinery’s book value on January 1, 2020
In: Accounting
Which of the following transactions would be acceptable as a provision under IAS 37?
XY decided to reorganise a manufacturing facility during June 2020 and commissioned a consulting engineer to undertake a feasibility study.
A provision of $2 million for the reorganisation was created as at 31 August 2020. In September 2020, AB contracted with a training company to provide essential training for its workforce to be carried out in October and November 2020.
A provision for the necessary expenditure was created in its accounts at 31 August 2020.
CDE was ordered by its local authority in October 2020 to carry out an environmental clean-up in 2021 following pollution from one of its factories.
GY acquired HT and provided for likely future operating losses at the date of acquisition amounting to $250,000.
In: Accounting
Case study title: “Managerial accounting in times of crisis”
The Coronavirus (COVID19) pandemic defined as global health crisis that consider being a great challenge since World War Two. In December 2019, the COVID19 phenomena appeared in a seafood market, Wuhan – China, while registered as a new disease officially on 7th of January 2020 (WHO, 2020)1 . Countries all over the world are battling with the spread of COVID19 through enormous amount of testing kits, mandate/by-choice quarantine of citizen and cancelling large events all over the world (WHO, 2020). Constantly, the battle against the COVID19 stressing all the resources of the countries. In other words, its pandemic goes beyond more than a global health crisis, it influence the social, educational, economic and political dimensions in the world, and creates related crisis in the future that require years to recover (UN, 2020)2 . Many of our great cities and communities are deserted as people stay indoors either by choice or government order, social life changed dramatically, shops theatres and restaurants closed during the pandemic. Assume you are a managerial accountant in a small and medium-sized perfume production company in Doha, which was established five years ago. In the current economic situation, the company is facing some financial challenges. The company's CEO held a meeting with you to discuss ways out of that crisis so that the company could survive and even compete under the current circumstances.
Discuss the various activities that the managerial accountant may be assigned to in the company in order to help the CEO make rational decisions under the current circumstances.
In: Accounting
Melbourne Ltd acquired 100% of Sydney Ltd on 11 December 2016. On 1 January 2017, Sydney Ltd sold a machine to Melbourne Ltd for $80,000 and recorded a profit of $20,000. Melbourne Ltd will depreciate this machine on a straight-line basis over its useful life of 8 years. You, the group accountant, have just finished preparing the consolidated financial statements for the year ending 30 June 2020. Mrs Jones, CEO of Melbourne Ltd, is not an accountant and she doesn’t understand why you had to make some adjustments before you prepare the consolidated accounts.
Required: Write an email to Mrs Jones summarising why it is essential to adjust for this intra-group transaction before preparing the consolidated financial statements. Note: consolidation entries are not required.
In: Accounting
Managerial and Cost Accounting concepts: Here we will start to distinguish between Financial Accounting and Managerial Accounting. We will begin to look at manufacturing costs since they lend themselves very well to the new concepts. In Chapter 10 we will also start to classify the costs of a business as direct material, direct labor or manufacturing overhead or period costs.
Discussion Topic: Assume you have just taken a position
as controller for a new company that manufactures and sells wrought
iron wall hangings. Although the founder of the company, who is the
president and CEO, is a great artisan, she has very limited
knowledge of accounting.
Instructions
To help your new boss better understand accounting for a
manufacturing organization, prepare a response to her in which
you:
(1) Identify each of the three manufacturing costs,
(2) Describe/define each of the three manufacturing costs, and
(3) Provide at least one example of each of the three manufacturing costs that might be used in the company you were just hired to work for.
In: Accounting
"The 32 year old former pharmaceutical executive raised the Price of a once-cheap life-saving pill to $750 was unapologetic and showed his contempt for lawmakers and invoked his Fifth Amendment rights." http://www.foxnews.com/politics/2016/02/04/ex-ceo-shkreli-smirks-pleads-fifth-at-hearing-on-drug-price-hikes.html Explain whether this pricing strategy is really desirable profitable decision.
In: Economics
In: Accounting