Fletcher Fabrication, Inc., produces three products by a joint production process. Raw materials are put into production in Department X, and at the end of processing in this department, three products appear. Product A is sold at the split-off point with no further processing. Products B and C require further processing before they are sold. Product B is processed in Department Y, and product C is processed in Department Z. The company uses the estimated net realizable value method of allocating joint production costs. Following is a summary of costs and other data for the quarter ended June 30.

No inventories were on hand at the beginning of the quarter. No raw material was on hand at June 30. All units on hand at the end of the quarter were fully complete as to processing.

Required:

a. Determine the following amounts for each product: (Do not round intermediate calculations.)

(1) Estimated net realizable value used for allocating joint costs.

(2) Joint costs allocated to each of the three products.

(3) Cost of goods sold.

(4) Finished goods inventory costs, June 30.

b. Assume that the entire output of product A could be processed further at an additional cost of $5.90 per pound and then sold for $12.60 per pound. Compute the incremental income from further processing A.

A) 1

product estimated net realizable values

A 182500

B ?

C ?

2

Product Joint costs

A ?

B ?

C ?

3

Costs of goods sold

A ?

B ?

C ?

4

Ending Inventory

A ?

B ?

C ?

Santana Rey expects second-quarter 2020 sales of Business Solutions’s line of computer furniture to be the same as the first quarter’s sales (reported below) without any changes in strategy. Monthly sales averaged 42 desk units (sales price of $1,270) and 22 chairs (sales price of $520).

* Reflects revenue and expense activity only related to the computer furniture segment.
† Revenue: (126 desks × $1,270) + (66 chairs × $520) = $160,020 + $34,320 = $194,340
‡ Cost of goods sold: (126 desks × $770) + (66 chairs × $270) + $30,600 = $145,440

Santana Rey believes that sales will increase each month for the next three months (April, 50 desks, 34 chairs; May, 54 desks, 37 chairs; June, 58 desks, 40 chairs) if selling prices are reduced to $1,170 for desks and $470 for chairs and advertising expenses are increased by 10% and remain at that level for all three months. The products’ variable cost will remain at $770 for desks and $270 for chairs. The sales staff will continue to earn a 10% commission, the fixed manufacturing costs per month will remain at $10,200 and other fixed expenses will remain at $6,200 per month.
Required:
1. Prepare budgeted income statements for the computer furniture segment for each of the months of April, May, and June that show the expected results from implementing the proposed changes. Use a three-column format, with one column for each month.
2. Recommend whether Santana Rey should implement the proposed changes.

Santana Rey expects second-quarter 2020 sales of Business Solutions’s line of computer furniture to be the same as the first quarter’s sales (reported below) without any changes in strategy. Monthly sales averaged 41 desk units (sales price of $1,260) and 21 chairs (sales price of $510).

* Reflects revenue and expense activity only related to the computer furniture segment.
† Revenue: (123 desks × $1,260) + (63 chairs × $510) = $154,980 + $32,130 = $187,110
‡ Cost of goods sold: (123 desks × $760) + (63 chairs × $260) + $30,300 = $140,160

Santana Rey believes that sales will increase each month for the next three months (April, 49 desks, 33 chairs; May, 53 desks, 36 chairs; June, 57 desks, 39 chairs) if selling prices are reduced to $1,160 for desks and $460 for chairs and advertising expenses are increased by 10% and remain at that level for all three months. The products’ variable cost will remain at $760 for desks and $260 for chairs. The sales staff will continue to earn a 10% commission, the fixed manufacturing costs per month will remain at $10,100 and other fixed expenses will remain at $6,100 per month.

Required:
1. Prepare budgeted income statements for the computer furniture segment for each of the months of April, May, and June that show the expected results from implementing the proposed changes. Use a three-column format, with one column for each month.
2. Recommend whether Santana Rey should implement the proposed changes.

1. The Mountain Top Shoppe has sales of $512,000, average accounts receivable of $31,400 and average accounts payable of $24,800. The cost of goods sold is equivalent to 71 percent of sales. How long does it take The Mountain Top Shoppe to pay its suppliers?

2. HG Livery Supply had a beginning accounts payable balance of $57,300 and an ending accounts payable balance of $55,100. Sales for the period were $610,000 and costs of goods sold were $458,000. What is the average payment period? (Note: if you have a beginning and an ending balance for A/R, A/P, or inventory, you should average them before beginning calculations).

3. On average, Furniture & More is able to sell its inventory in 27 days. The firm takes 87 days on average to pay for its purchases. On the other hand, its average customer pays with a credit card which allows the firm to collect its receivables in 4 days. Given this information, what is the length of operating cycle?

4. Interior Designs has a days sales in inventory of 51 days, an average payment period of 38 days, and an average collection period of 32 days. Management is considering an offer from their suppliers to pay within 10 days and receive a 2 percent discount. If the new discount is taken, the average payment period is expected to decline by 26 days. If the new discount is taken, the operating cycle will be _____ days.

5. If the new discount is taken from the previous problem, the cash cycle will be _____ days.

6. Breakwater Aquatics has a 45 day accounts receivable period. The estimated quarterly sales for this year, starting with the first quarter, are $6,800, $7,100, $8,200, and $6,400, respectively. What is the accounts receivable balance at the beginning of the third quarter? Assume a year has 360 days.

1. Sometimes when the U. S. economy starts pulling out of a recession, the unemployment rate actually rises for a time rather than immediately falling. This is commonly referred to as a "jobless recovery". There are 2 reasons for this strange phenomenon occurring. What are the 2 reasons? Explain. (Hint: Refer to the Extra PPT on Unemployment and Chapter 6 of the course text! You could also do an Internet search for "What is a jobless recovery?"!)

2. There are 3 types of unemployment in economics: frictional, structural, and cyclical. The first 2 types together constitute NATURAL UNEMPLOYMENT,, while the 3rd type is the excess unemployment above the natural unemployment (where the natural unemployment rate is believed to be at most 5% for the U. S. economy). Given this, when the economy pulls out of a recession, which type of unemployed workers would be hired first, those who are structurally unemployed or those who are cyclically unemployed? Explain why.

3. During the period 1983-1984, the inflation rate in Israel was 370% . Given this, if a dinner cost 10 shekels in an Israeli restaurant at the end of 1983, how much would that same dinner cost at the end of 1984 in Israel? Show all work and calculations and explain!

4. Between the period 1980 to 1985, policy makers in the United Kingdom worked to lower the inflation rate in the country. They were successful in their attempts. Given this, explain what happened to the unemployment rate in the United Kingdom during this period as a result of this successful policy. (Note that a lower but still positive inflation rate is known in economics as disinflation!)

Siren Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2017, the company incurred the following costs.

Siren Company sells the fishing lures for $27.25. During 2017, the company sold 82,000 lures and produced 97,000 lures.

Part 1

Assuming the company uses variable costing, calculate Siren’s manufacturing cost per unit for 2017. (Round answer to 2 decimal places, e.g.10.50.)

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Part 2

Prepare a variable costing income statement for 2017. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

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Part 3

Assuming the company uses absorption costing, calculate Siren’s manufacturing cost per unit for 2017. (Round answer to 2 decimal places, e.g.10.50.)

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Part 4

Prepare an absorption costing income statement for 2017. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Problem 8-29 Completing a Master Budget [LO8-2, LO8-4, LO8-7, LO8-8, LO8-9, LO8-10]

The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods:

1. The gross margin is 25% of sales.

2. Actual and budgeted sales data:

3. Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following sale. The accounts receivable at March 31 are a result of March credit sales.

4. Each month’s ending inventory should equal 80% of the following month’s budgeted cost of goods sold.

5. One-half of a month’s inventory purchases is paid for in the month of purchase; the other half is paid for in the following month. The accounts payable at March 31 are the result of March purchases of inventory.

6. Monthly expenses are as follows: commissions, 12% of sales; rent, $2,000 per month; other expenses (excluding depreciation), 6% of sales. Assume that these expenses are paid monthly. Depreciation is $927 per month (includes depreciation on new assets).

7. Equipment costing $1,200 will be purchased for cash in April.

8. Management would like to maintain a minimum cash balance of at least $4,000 at the end of each month. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month, up to a total loan balance of $20,000. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter.

Required:

Using the preceding data:

2. Complete the merchandise purchases budget and the schedule of expected cash disbursements for merchandise purchases.

3. Complete the cash budget.

4. Prepare an absorption costing income statement for the quarter ended June 30.

5. Prepare a balance sheet as of June 30.

Complete the merchandise purchases budget and the schedule of expected cash disbursements for merchandise purchases.

Complete the cash budget. (Cash deficiency, repayments and interest should be indicated by a minus sign.)

Prepare an absorption costing income statement for the quarter ended June 30

Prepare a balance sheet as of June 30.

1. Phishing:
   1. Specifically targets a given organization or group of users.
   2. Emphasizes leveraging extremely detailed, pinpoint information about the respective target.
   3. The goal is to leverage the reputation of a trusted firm to trick the victim into performing an action, or to reveal information.
   4. Seldom masquerades as a security alert from a bank, or e-commerce site.

2. Cash Conversion Cycle:
   1. In general, retailers want the Cash Conversion Cycle number to be as large as possible.
   2. A firm’s Cash Conversion Cycle does not vary from quarter to quarter.
   3. It is impossible for a firm to have a negative Cash Conversion Cycle.
   4. Amazon consistently reports a negative Cash Conversion Cycle. It frequently sells goods, and collects money from its customers before it has to pay its suppliers.

ch 7 exer #6

Shalder Custom Fridges uses a job costing system to measure and track product costs for its line of custom-made, highly prestigious premium quality fridges, to allocate overhead costs to its products. Overhead costs are expected to be $110 000. The best estimate for production time in the upcoming year is 22 000 direct labour hours. Production data for the first quarter of the year for the following four types of custom fridges (Freeze, Winter, Ice, and Snow fridge types) is given below:
Freeze Winter Ice Snow
Direct materials used ($) 20,000                  17,000                      14,000                        15,000
Direct labour cost ($)    13,000                 12,000                   8,000                          9,000
Direct labour hours        3,200                      3, 000                2, 900                   2,900
Required
(A) Calculate the predetermined overhead rate based on direct labour hours.                           
(B) Calculate the overhead cost to be assigned to the four fridge types, separately.           
(C) Calculate the total manufacturing cost for each of the four fridge types.                 
(D) At the end of the first quarter, Shalder Custom Fridges found that they have incurred $21 500 for actual overhead. Calculate the overhead variance for the first quarter.                           
(E)How might the company improve its product costing system? Please consider the overhead cost driver being used in answering this question.                        

could u teach me the whole solutions of this question???plz