Hickory Company manufactures two products—13,000 units of Product Y and 5,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z:

Activity Cost Pool   Activity Measure   Estimated Overhead Cost   Expected Activity
Machining   Machine-hours   $   242,400   12,000   MHs
Machine setups   Number of setups   $   114,400   220   setups
Production design   Number of products   $   86,000   2   products
General factory   Direct labor-hours   $   302,400   14,400   DLHs

Activity Measure   Product Y   Product Z
Machine-hours   7,200   4,800
Number of setups   40   180
Number of products   1   1
Direct labor-hours   8,200   6,200

9. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? (Do not round intermediate calculations and round your final answer to the nearest dollar amount.)

10. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z? (Do not round intermediate calculations and round your final answer to the nearest dollar amount.)

11. Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places. Round your "Percentage" answers to 2 decimal places. (i.e. 0.1234 should be entered as 12.34).)

12. Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places. Round your "Percentage" answers to 2 decimal places. (i.e. 0.1234 should be entered as 12.34).)

13. Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places. Round your "Percentage" answers to 2 decimal places. (i.e. 0.1234 should be entered as 12.34).)

14. Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Product Z? (Round your "Percentage" answers to 2 decimal places. (i.e. 0.1234 should be entered as 12.34)).

15. Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places. Round your "Percentage" answers to 2 decimal places. (i.e. 0.1234 should be entered as 12.34).)

TASK 1: THE IMPORTANCE OF CONSTRUCTION INDUSTRY IN THE ECONOMY

• THE IMPORTANCE OF CONSTRUCTION INDUSTRY IN THE ECONOMY

• Explain in detail the Role of Construction Industry
• Explain in detail the contribution of the construction Industry in economic growth in terms of:
  • Employment
  • Foreign Investment
  • Tourism
  • The growth of other industry

Which of the following would be included in inventory? Yes or No

(a) Raw materials costs of leather to a manufacturer of leather furniture

(b) The cost of cans of corn held on the shelves of a grocery store

(c) The cost of a truck in the process of being manufactured by an automobile manufacturer

(d) The cost of land being held for development to a property developer

(e) The cost of a van being used as a courtesy vehicle to an automobile service centre

(f) The costs of construction for a home being built for a specific customer to a builder

(g) The cost of soap and paper towels for the washrooms of a restaurant

Citation Builders, Inc., builds office buildings and single-family homes. The office buildings are constructed under contract with reputable buyers. The homes are constructed in developments ranging from 10–20 homes and are typically sold during construction or soon after. To secure the home upon completion, buyers must pay a deposit of 10% of the price of the home with the remaining balance due upon completion of the house and transfer of title. Failure to pay the full amount results in forfeiture of the down payment. Occasionally, homes remain unsold for as long as three months after construction. In these situations, sales price reductions are used to promote the sale.

During 2018, Citation began construction of an office building for Altamont Corporation. The total contract price is $27 million. Costs incurred, estimated costs to complete at year-end, billings, and cash collections for the life of the contract are as follows:

Also during 2018, Citation began a development consisting of 12 identical homes. Citation estimated that each home will sell for $940,000, but individual sales prices are negotiated with buyers. Deposits were received for eight of the homes, three of which were completed during 2018 and paid for in full for $940,000 each by the buyers. The completed homes cost $705,000 each to construct. The construction costs incurred during 2018 for the nine uncompleted homes totaled $4,230,000.

Required:

1. Which method is most equivalent to recognizing revenue at the point of delivery?
2. Answer the following questions assuming that Citation uses the completed contract method for its office building contracts:
2-a. How much revenue related to this contract will Citation report in its 2018 and 2019 income statements?
2-b. What is the amount of gross profit or loss to be recognized for the Altamont contract during 2018 and 2019?
2-c. What will Citation report in its December 31, 2018, balance sheet related to this contract? (Ignore cash.)
3. Answer the following questions assuming that Citation uses the percentage-of-completion method for its office building contracts.
3-a. How much revenue related to this contract will Citation report in its 2018 and 2019 income statements?
3-b. What is the amount of gross profit or loss to be recognized for the Altamont contract during 2018 and 2019?
3-c. What will Citation report in its December 31, 2018, balance sheet related to this contract? (Ignore cash.)
4. Assume the same information for 2018 and 2019, but that as of year-end 2019 the estimated cost to complete the office building is $12,150,000. Citation uses the percentage-of-completion method for its office building contracts.
4-a. How much revenue related to this contract will Citation report in the 2019 income statement?
4-b. What is the amount of gross profit or loss to be recognized for the Altamont contract during 2019?
4-c. What will Citation report in its 2019 balance sheet related to this contract? (Ignore cash.)
5. Which method of accounting should Citation Builders, Inc adopt for its single-family houses?
6. What will Citation report in its 2018 income statement and 2018 balance sheet related to the single-family home business (ignore cash in the balance sheet)?

?i already posted this question before but got wrong soljution can you please make sure this time that answer is correct

Greenwood Company manufactures two products—14,000 units of Product Y and 6,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z:

Copmare the following 2 altrernatives using the Net Equivalent Uniform Annual method

interest rate 3 % year

Greenwood Company manufactures two products—13,000 units of Product Y and 5,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z:

Activity cost pool Activity measure Estimated overhead cost Expected activity

machining Machine Hours $228,000 12,000MHs

machine setup Number of set ups $40,000 100 setups

production design Number of products $74,000 2 products

general factory Direct labor hours $288,000 12,000DLHs

Activity measure Product Y Product Z

Machining 7,000 5,000

Number of setups 40 60

Number of products 1 1

Direct labor hours 7,000 5,000

Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z?

total overhead cost Y%- Z%-

Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z?

Machining costs Y%- Z%-

Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z?

Machine setups Y%- Z%-

Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Product Z?

Product Design Y%- Z%-

Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z?

general factory cost Y%- Z%-

You have been asked by the president of Ellis Construction Company, headquartered in Toledo, to evaluate the proposed acquisition of a new earthmover. The mover’s basic price is $50,000, and it will cost another $10,000 to modify it for special use by Ellis Construction. Assume that the mover falls into the MACRS 3-year class. It will be sold after 3 years for $20,000, and it will require an increase in working capital (spare parts inventory) of $2,000. The earthmover purchase will have no effect on revenues, but it is expected to save Ellis $20,000 per year in before-tax operating costs, mainly labor. Ellis’s marginal federal-plus-state tax rate is 40%. The cost of capital (discount rate) is 10%. Use the following 3-yeear MACRS schedule: 0.3333, 0.4445, 0.1481, and 0.0741.

1. Compute the NPV of the project.
2. Compute the IRR of the project.
3. What is your conclusion?

You have been asked by the president of Ellis Construction Company, headquartered in Toledo, to evaluate the proposed acquisition of a new earthmover. The mover’s basic price is $50,000, and it will cost another $10,000 to modify it for special use by Ellis Construction. Assume that the mover falls into the MACRS 3-year class. It will be sold after 3 years for $20,000, and it will require an increase in working capital (spare parts inventory) of $2,000. The earthmover purchase will have no effect on revenues, but it is expected to save Ellis $20,000 per year in before-tax operating costs, mainly labor. Ellis’s marginal federal-plus-state tax rate is 40%. The cost of capital (discount rate) is 10%. Use the following 3-yeear MACRS schedule: 0.3333, 0.4445, 0.1481, and 0.0741.

1. Compute the NPV of the project.

2. Compute the IRR of the project.

3. What is your conclusion?