An increase in military spending moves the government’s budget from surplus into deficit.

B.Concerns over job security raises precautionary saving.

C.New computer-controlled machines are able to produce manufactured goods more efficiently and with fewer defects.

D.New environmental regulations increase firms’ costs of operating capital.

E.The legislature passes a 20 percent investment tax credits.

The table below gives the completion percentage and interception percentage for five randomly selected NFL quarterbacks. Based on this data, consider the equation of the regression line, yˆ=b0+b1x y ^ = b 0 + b 1 x , for using the completion percentage to predict the interception percentage for an NFL quarterback. Keep in mind, the correlation coefficient may or may not be statistically significant for the data given. Remember, in practice, it would not be appropriate to use the regression line to make a prediction if the correlation coefficient is not statistically significant. Completion Percentage 56.9 56.9 57 57 59 59 60.9 60.9 63.2 63.2 Interception Percentage 4.9 4.9 3.8 3.8 3 3 2 2 1.4 1.4

Minister of labour, Thulas Nxesi, has gazetted South Africa’s new minimum wage which will take effect from 1 March 2020. The gazette states that the new national minimum wage is R20.76 – an increase of 3.8%”.

Provide a discussion on the welfare effect of the above, that illustrates the case for when the above results in unemployment in the market for domestic workers as well as a case for when the above has no effect on the market for domestic workers. Use a diagram to support your discussion.

Minister of labour, Thulas Nxesi, has gazetted South Africa’s new minimum wage which will take effect from 1 March 2020. The gazette states that the new national minimum wage is R20.76 – an increase of 3.8%”.

Provide a discussion on the welfare effect of the above, that illustrates the case for when the above results in unemployment in the market for domestic workers as well as a case for when the above has no effect on the market for domestic workers. Use a diagram to support your discussion.

Minister of labour, Thulas Nxesi, has gazetted South Africa’s new minimum wage which will take effect from 1 March 2020. The gazette states that the new national minimum wage is R20.76 – an increase of 3.8%”.

Scrappers Supplies tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system. Assume its accounting records provided the following information at the end of the annual accounting period, December 31.

TIP: Although the purchases and sales are listed in chronological order, Scrappers determines the cost of goods sold after all of the purchases have occurred.

Required:

1. Compute the cost of goods available for sale, cost of ending inventory, and cost of goods sold at December 31 under each of the following inventory costing methods: (Round "Cost per Unit" to 2 decimal places.)
   a. Last-in, first-out.
   b. Weighted average cost.
   c. First-in, first-out.
   d. Specific identification, assuming that the April 1 sale was selected one-fifth from the beginning inventory and four-fifths from the purchase of March 2. Assume that the sale of August 1 was selected from the purchase of June 30.
2. Of the four methods, which will result in the highest gross profit? Which will result in the lowest income taxes?

d. CCompute the cost of goods available for sale, cost of ending inventory, and cost of goods sold at December 31 using the Specific identification method. Assume that the April 1 sale was selected one-fifth from the beginning inventory and four-fifths from the purchase of March 2. Assume that the sale of August 1 was selected from the purchase of June 30. (Round "Cost per Unit" anwers to 2 decimal places.)

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Of the four methods, which will result in the highest gross profit?

Which will result in the lowest income taxes?

Dean Williams, the manager of Bond Moldings’ European division, is working on putting together the production schedule for the last three months of the year. The European division had planned to sell 200,000 units during the year. However most recent projections indicate sales will only be 180,000 units. By the end of September, the following activity had been reported:

• Beginning Inventory, January 1 -0-
• Production 60,000 units
• Sales 50,000 units
• Ending Inventory, September 30 10,000 units

Demand has been weak so far and the sales forecast for the last quarter is only 10,000 units.

The European division has the option of renting outside warehouse space to store up to a maximum of 25,000 units. The division has a policy that it needs to maintain a minimum inventory level of 2,500 units to ensure that customer orders will potentially not have be cancelled or shorted.

Mr. Williams is aware that production must be at least 10,000 per quarter in order to justify continuing to pay a small core of production workers. Maximum production capacity is 50,000 units.

Further, fixed manufacturing overhead is a significant portion of the divisions’ product cost.

Question

Identify and comment on the ethical issues centered on the decision Mr. Williams must make about the level of production for the last quarter of the year.

Problem 1-25 Traditional and Contribution Format Income Statements [LO1-6]

Milden Company is a merchandiser that plans to sell 31,000 units during the next quarter at a selling price of $55 per unit. The company also gathered the following cost estimates for the next quarter:

Required:

1. Prepare a contribution format income statement for the next quarter.

2. Prepare a traditional format income statement for the next quarter.

Problem 1-25 Traditional and Contribution Format Income Statements [LO1-6] Milden Company is a merchandiser that plans to sell 31,000 units during the next quarter at a selling price of $58 per unit. The company also gathered the following cost estimates for the next quarter: Cost Cost Formula Cost of good sold $28 per unit sold Advertising expense $178,000 per quarter Sales commissions 5% of sales Shipping expense $48,000 per quarter + $5.00 per unit sold Administrative salaries $88,000 per quarter Insurance expense $9,800 per quarter Depreciation expense $58,000 per quarter Required: 1. Prepare a contribution format income statement for the next quarter. 2. Prepare a traditional format income statement for the next quarter.

Problem 1-25 Traditional and Contribution Format Income Statements [LO1-6] Milden Company is a merchandiser that plans to sell 31,000 units during the next quarter at a selling price of $58 per unit. The company also gathered the following cost estimates for the next quarter: Cost Cost Formula Cost of good sold $28 per unit sold Advertising expense $178,000 per quarter Sales commissions 5% of sales Shipping expense $48,000 per quarter + $5.00 per unit sold Administrative salaries $88,000 per quarter Insurance expense $9,800 per quarter Depreciation expense $58,000 per quarter Required: 1. Prepare a contribution format income statement for the next quarter. 2. Prepare a traditional format income statement for the next quarter.