(8-3)

[The following information applies to the questions displayed below.]
In January 2017, Mitzu Co. pays $2,700,000 for a tract of land with two buildings on it. It plans to demolish Building 1 and build a new store in its place. Building 2 will be a company office; it is appraised at $678,500, with a useful life of 20 years and a $75,000 salvage value. A lighted parking lot near Building 1 has improvements (Land Improvements 1) valued at $501,500 that are expected to last another 17 years with no salvage value. Without the buildings and improvements, the tract of land is valued at $1,770,000. The company also incurs the following additional costs:

Required:

1. Allocate the costs incurred by Mitzu to the appropriate columns and total each column.

2. Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1, 2017.

3. Using the straight-line method, prepare the December 31 adjusting entries to record depreciation for the 12 months of 2017 when these assets were in use.

The voters of the City of Monroe approved the issuance of tax-supported bonds in the face amount of $4,000,000 for the construction and equipping of a new City Jail. Architects were to be retained, and construction was to be completed by outside contractors. In addition to the bond proceeds, a $1,340,000 grant was expected from the state government.

Required:

a.

Open a general journal for the City Jail Annex Construction Fund. Record the following transactions and post to the general ledger. Control accounts are not necessary.

(1) On January 1, 2017, the total face amount of bonds bearing an interest rate of 8 percent was sold at a $200,000 premium. Principal amounts of $200,000 each will come due annually over a 20-year period commencing January 1, 2018. Interest payment dates are July 1 and January 1. The first interest payment will be July 1, 2017. The premium was transferred to the City Jail Debt Service Fund for the future payment of principal on the bonds.

(2) The receivable from the state government was recorded.

(3) Legal and engineering fees early in the project were paid in the amount of $121,000. This amount had not been encumbered.

(4) Architects were engaged at a fee of $250,000.

(5) Preliminary plans were approved, and the architects were paid $50,000 (20 percent of the fee).

(6) The complete plans and specifications were received from the architects and approved. A liability in the amount of $150,000 to the architects was approved and paid.

(7) Bids were received and opened in public session. After considerable discussion in City Council, the low bid from Hardhat Construction Company in the amount of $4,500,000 was accepted, and a contract was signed.

(8) The contractor required partial payment of $1,350,000. Payment was approved and vouchered with the exception of a 5 percent retainage.

(9) Cash in the full amount of the grant was received from the state government.

(10) Furniture and equipment for the annex were ordered at a total cost of $459,500.

(11) Payment was made to the contractor for the amount payable (see 8 above).

(12) The contractor completed construction and requested payment of the balance due on the contract. After inspection of the work, the amount, including the past retainage, was approved for payment and then paid.

(13)The furniture and equipment were received at a total actual installed cost of $459,300. Invoices were approved for payment.

(14) The remainder of the architects’ fees was approved for payment.

(15) The City Jail Construction Fund paid all outstanding accounts payables ($509,300) on December 31, 2017.

(16) The remaining cash was transferred to the City Jail Debt Service Fund.

b.

Post the entries to the City Jail Construction Fund general ledger.

c.

Prepare and post an entry closing all nominal accounts to Fund Balance.

Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departments—Molding and Fabrication. It started, completed, and sold only two jobs during March—Job P and Job Q. The following additional information is available for the company as a whole and for Jobs P and Q (all data and questions relate to the month of March):

Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month.

Required:

For questions 1-9, assume that Sweeten Company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments and Job P included 20 units and Job Q included 30 units. For questions 10-15, assume that the company uses a plantwide predetermined overhead rate with machine-hours as the allocation base.

14. Assume that Sweeten Company used cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. What selling price would the company have established for Jobs P and Q? What are the selling prices for both jobs when stated on a per unit basis? (Do not round intermediate calculations. Round your final answers to nearest whole dollar.)

15. What was Sweeten Company’s cost of goods sold for March? (Do not round intermediate calculations.)

A. You have signed a cost plus fixed fee (CPFF) contract with a supplier to perform some work for you. The contract parameters include: Estimated Cost: $100,000 Fixed Fee: $10,000 If the seller is able to complete the work for a cost of $80,000, what will be the final price paid to the seller?

B. You have signed a cost plus percentage cost (CPPC) contract with a supplier to perform some work for you. The contract parameters include the following: Estimated Cost: $100,000 Fee Percentage: 10% The supplier with your authorization is able to complete the work for a cost of $120,000. There is no change in scope. What is the final price paid to the supplier?

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:

1.  Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z?

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

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

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

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

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

Question 1. a) Modern Methods of Construction (MMC) is a term which has been commonly applied to construction activities. Using your own words supported by references, provide an explanation of MMC and detail the technical construction procedures classified as MMC and explain how these differ from traditional construction

As per ASCE 37-02 mention the standard loading of Combined construction loads (personnel, equipment, and materials) based on the level of use for the working surface.

During 2017, Martinez Company started a construction job with a contract price of $1,580,000. The job was completed in 2019. The following information is available.

Instructions:

Complete a chart analyzing the above information showing revenue, the % of completion every year and the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used.

Prepare all necessary journal entries for 2017, 2018, and 2019.

Compute the amount of gross profit to be recognized each year, assuming the completed-contract method is used.

Q3: Why can a hotel, motel, or restaurant usually operate with a current ratio
considerably lower than other types of businesses, such as manufacturing
companies?

Servicescapes are the physical surroundings in which a service is delivered. What is the strengths and weaknesses of the layout of that Servicescapes from the hotel industry of both service delivery and the customer?