Ivanhoe Corporation, a publicly traded company, is preparing the interim financial data which it will issue to its stockholders and the Securities and Exchange Commission (SEC) at the end of the first quarter of the 2017–2018 fiscal year. Ivanhoe’s financial accounting department has compiled the following summarized revenue and expense data for the first quarter of the year. Sales revenue $56,000,000 Cost of goods sold 35,200,000 Variable selling expenses 870,000 Fixed selling expenses 2,720,000 Included in the fixed selling expenses was the single lump-sum payment of $1,810,000 for television advertisements for the entire year. Ivanhoe Corporation must issue its quarterly financial statements in accordance with generally accepted accounting principles regarding interim financial reporting. Should Ivanhoe report its operating results for the quarter as if the quarter were a separate reporting period in and of itself, or as if the quarter were an integral part of the annual reporting period. . The company report its quarterly results as if each interim period is an integral part of the annual period. State how the sales revenue, cost of goods sold, and fixed selling expenses would be reflected in Ivanhoe Corporation’s quarterly report prepared for the first quarter of the 2017–2018 fiscal year. IVANHOE CORPORATION INCOME STATEMENT 2017–2018 $
In: Accounting
Prepare a direct materials budget by quarters for the 6-month period ended June 30, 2017
On January 1, 2017, the Hardin Company budget committee has
reached agreement on the following data for the 6 months ending
June 30, 2017.
| Sales units: | First quarter 6,000; second quarter 6,900; third quarter 7,400 | |
| Ending raw materials inventory: | 40% of the next quarter’s production requirements | |
| Ending finished goods inventory: | 25% of the next quarter’s expected sales units | |
| Third-quarter production: | 7,840 units. |
The ending raw materials and finished goods inventories at December
31, 2016, follow the same percentage relationships to production
and sales that occur in 2017. 4 pounds of raw materials are
required to make each unit of finished goods. Raw materials
purchased are expected to cost $5 per pound.
In: Accounting
On January 1, 2017, the Hardin Company budget committee has
reached agreement on the following data for the 6 months ending
June 30, 2017.
| Sales units: | First quarter 5,100; second quarter 6,300; third quarter 7,300 | |
| Ending raw materials inventory: | 40% of the next quarter’s production requirements | |
| Ending finished goods inventory: | 25% of the next quarter’s expected sales units | |
| Third-quarter production: | 7,670 units. |
The ending raw materials and finished goods inventories at December
31, 2016, follow the same percentage relationships to production
and sales that occur in 2017. 5 pounds of raw materials are
required to make each unit of finished goods. Raw materials
purchased are expected to cost $5 per pound.
Prepare a direct materials budget by quarters for the 6-month period ended June 30, 2017.
In: Accounting
On January 1, 2017, the Hardin Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2017.
| Sales units: | First quarter 5,100; second quarter 6,800; third quarter 7,300 | |
| Ending raw materials inventory: | 40% of the next quarter’s production requirements | |
| Ending finished goods inventory: | 25% of the next quarter’s expected sales units | |
| Third-quarter production: | 7,390 units. |
The ending raw materials and finished goods inventories at December
31, 2016, follow the same percentage relationships to production
and sales that occur in 2017. 4 pounds of raw materials are
required to make each unit of finished goods. Raw materials
purchased are expected to cost $5 per pound.
Prepare a direct materials budget by quarters for the 6-month period ended June 30, 2017.
In: Accounting
On January 1, 2017, the Hardin Company budget committee has reached agreement on the following data for the 6 months ending June 30, 2017. Sales units: First quarter 5,000; second quarter 6,000; third quarter 7,000 Ending raw materials inventory: 40% of the next quarter’s production requirements Ending finished goods inventory: 25% of the next quarter’s expected sales units Third-quarter production: 7,200 units. The ending raw materials and finished goods inventories at December 31, 2016, follow the same percentage relationships to production and sales that occur in 2017. 3 pounds of raw materials are required to make each unit of finished goods. Raw materials purchased are expected to cost $4 per pound.
Prepare a direct materials budget by quarters for the 6-month period ended June 30, 2017.
In: Accounting
The U.S. Census Bureau publishes data on factory orders for all manufacturing, durable goods, and nondurable goods industries. Shown below are factory orders in the United States over a 13- year period ($ billion). First, use the data to develop forecasts for years 6 through 13 using a 5-year moving average. Then, use the data to develop forecasts for years 6 through 13 using a 5-year weighted moving average. Weight the most recent year by 6, the previous year by 4, the year before that by 2, and the other years by 1. Answer the following questions: a) What is the forecast for year 13 based on the 5-year moving average? b) What is the forecast for year 13 based on the 5-year weighted moving average? c) What is the MAD for the moving average forecast? d) What is the MAD for the weighted moving average forecast? e) Which forecasting model is better? Year Factory orders 1 2,512.70 2 2,739.20 3 2,874.90 4 2,934.10 5 2,865.70 6 2,978.50 7 3,092.40 8 3,052.60 9 3,145.20 10 3,114.10 11 3,257.40 12 3,654.00 13
In: Statistics and Probability
The U.S. Census Bureau publishes data on factory orders for all manufacturing, durable goods, and nondurable goods industries. Shown below are factory orders in the United States over a 13- year period ($ billion). First, use the data to develop forecasts for years 6 through 13 using a 5-year moving average. Then, use the data to develop forecasts for years 6 through 13 using a 5-year weighted moving average. Weight the most recent year by 6, the previous year by 4, the year before that by 2, and the other years by 1. Answer the following questions: a) What is the forecast for year 13 based on the 5-year moving average? b) What is the forecast for year 13 based on the 5-year weighted moving average? c) What is the MAD for the moving average forecast? d) What is the MAD for the weighted moving average forecast? e) Which forecasting model is better? Year Factory orders 1 2,512.70 2 2,739.20 3 2,874.90 4 2,934.10 5 2,865.70 6 2,978.50 7 3,092.40 8 3,052.60 9 3,145.20 10 3,114.10 11 3,257.40 12 3,654.00 13
In: Statistics and Probability
1. Identify the last two items (consumer goods and durable goods) you purchased. Alternatively, select any two items you purchased during the last two months. Choose diverse items and analyze each item in terms of the following factors:
a. Why did you buy that item? How did you decide what to get?
b. What attributes proved most important in narrowing your choices?
c. Where did you get your information about the item?
d. Where did you go to buy the item?
e. In what kind of market did you make your purchase?
f. Where did the money come from for your purchase?
g. How much did you pay for the item, and how did you pay for it?
h. How would you rate your satisfaction with your purchase?
i. If or when you purchase that type of item again, what might you do differently?
In: Finance
1. What is the multiplier if the marginal propensity to consume (MPC) is 0.5? Calculate the marginal propensity to save (MPS)?
2. What is the multiplier if the MPS is 0.2? Calculate the MPC.
3. As a percentage of GDP, savings accounts for a larger share of the economy in the country of Scania compared to the country of Amerigo. Which country is likely to have the larger multiplier? Explain.
4. Assuming that the aggregate price level is constant, the interest rate is fixed, and there are no taxes and no foreign trade, what will be the change in GDP if the following events occur?
a. There is an autonomous increase in consumer spending of $25 billion; the marginal propensity to consume is 2/3.
b. Firms reduce investment spending by $40 billion; the marginal propensity to consume is 0.8.
c. The government increases its purchases of military equipment by $60 billion; the marginal propensity to consume is 0.6.
5. The Bureau of Economic Analysis reported that, in real terms, overall consumer spending increased by $66.2 billion during the second quarter of 2014.
a. If the marginal propensity to consume is 0.52, by how much will real GDP change in response?
b. If there are no other changes to autonomous spending other than the increase in consumer spending in part a, and unplanned inventory investment, Iunplanned decreased by $50 billion, what is the change in real GDP?
c. GDP at the end of the first quarter in 2014 was $16,014.10 billion. If GDP were to increase by the amount calculated in part b, what would be the percent increase in GDP?
In: Accounting
Haney Batting Company manufactures wood baseball bats. Haney's two primary products are a youth bat, designed for children and young teens, and an adult bat, designed for high school and college-aged players. Haney sells the bats to sporting goods stores and all sales are on account. The youth bat sells for $35; the adult bat sells for $55. Haney's highest sales volume is in the first three months of the year as retailers prepare for the spring baseball season.Haney's balance sheet for December 31, 2016, follows:
Haney Batting Company
Balance Sheet
December 31, 2016
Assets
Current Assets: Cash $ 40,000
Accounts Receivable 17,900
Raw Materials Inventory 9,000
Finished Goods Inventory 16,450
Total Current Assets $ 83,350
Property, Plant, and Equipment: Equipment 140,000
Less: Accumulated Depreciation (10,000) 130,000
Total Assets $ 213,350
Liabilities
Current Liabilities:
Accounts Payable $ 10,500
Stockholders' Equity
Common Stock, no par $ 140,000
Retained Earnings 62,850
Total Stockholders' Equity 202,850
Total Liabilities and Stockholders' Equity $ 213,350
Liabilities Current Liabilities:
Accounts Payable $ 10,500
Stockholders' Equity Common Stock, no par $ 140,000
Retained Earnings 62,850
Total Stockholders' Equity 202,850
Total Liabilities and Stockholders' Equity $ 213,350
a. Budgeted sales are 1,300 youth bats and 3,100 adult bats.
b. Finished Goods Inventory on December 31 consists of 200 youth bats at $11 each and 750 adult bats at $19 each.
c. Desired ending Finished Goods Inventory is 250 youth bats and 550 adultbats; FIFO inventory costing method is used.
d. Direct materials cost is $13 per youth bat and $15 per adult bat.
e. Desired ending Raw Materials Inventory is $9,000 (indirect materials are insignificant and not considered for budgeting purposes).
f. Each bat requires 0.3 hours of direct labor; direct labor costs average$32 per hour.
g. Variable manufacturing overhead is $0.40 per bat.
h. Fixed manufacturing overhead includes $600 per quarter in depreciation and $1,525 per quarter for other costs, such as insurance and property taxes.
i. Fixed selling and administrative expenses include $14,000 per quarter forsalaries; $2,500 per quarter for rent; $1,900 per quarter for insurance; and $100 per quarter for depreciation.
j. Variable selling and administrative expenses include supplies at 1% of sales.
1. Prepare Haney's sales budget for the first quarter of 2017.
2. Prepare Haney's production budget for the first quarter of 2017.
3. Prepare Haney's direct materials budget, direct labor budget, and manufacturing overhead budget for the first quarter of 2017. Round the predetermined overhead allocation rate to two decimal places. The overhead allocation base is direct labor hours.
4. Prepare Haney's cost of goods sold budget for the first quarter of 2017.
5. Prepare Haney's selling and administrative expense budget for the first quarter of 2017.
In: Accounting