In: Psychology
Exercise 4
On January 1, 2017, Park Rapids Lumber Company issued $80 million in 20-year, 10% bonds payable. Interest is payable semiannually on June 30th and December 31st. Bond discounts and premiums are amortized straight-line at each interest payment date.
a. Record the journal entry when the bonds were issued on January 1, 2017, make the necessary the journal entry to record the payment of bond interest on June 30, 2017, under each of the following assumptions:
1. The bonds were issued at 98. Round your answers to the nearest dollar.
2. The bonds were issued at 101. Round your answers to the nearest dollar.
b. Compute the net bond liability at December 31, 2017, under assumptions 1 and 2 above. Round to the nearest dollar.
c. Under which of the above assumptions, 1 or 2 would the investor’s effective rate of interest be higher? Explain.
Exercise 5
Speed World Cycles sells high-performance motorcycles and Motocross racers. One of Speed World’s most popular models is the Kazomma 900 dirt bike. During the current year, Speed World purchased eight of these cycles at the following costs:
Purchase Date Units Purchased Unit Cost Total Cost
July 1 2 $4,950 $9,900
July 22 3 5,000 15,000
August 3 3 5,100 15,300
------ ------------
8 $40,200
On July 28, Speed World sold four Kazomma 900 dirt bikes to the Vince Wilson racing team. The remaining four bikes remained in inventory at September 30, the end of Speed World’s fiscal year.
Assume that Speed World uses a perpetual inventory system.
a. Compute the cost of goods sold relating to the sale on July 28 and the ending inventory of Kazomma 900 dirt bikes at September 30, using the following cost flow assumptions:
1. Average cost
2. FIFO
3. LIFO
Show the number of units and the unit costs of each layer comprising the cost of goods sold and ending inventory.
b. Using the cost figures computed in part a. answer the following questions:
1. Which of the three cost flow assumptions will result in Speed World Cycles reporting the highest net income for the current year? Would this always be the case? Explain.
2. Which of the three cost flow assumptions will minimize the income taxes owed by Speed World Cycles for the year? Would you expect this usually to be the case? Explain.
3. May Speed World Cycles use the cost flow assumption that results in the highest net income for the current year in its financial statements, but use the cost flow assumption that minimizes taxable income for the current year in its income tax return? Explain.
In: Accounting
5. Which category of inventory holding costs would be much higher than average for rapidly changing industries such as pesonal computers and cell phones?
a Obsolescence
b. Warehouse Leasing
c. Labor handling
6. High stock-out costs relative to holding costs should lead to recommendations for larger orders
a. Yes b. No
7. I dhe oruantity (ize) doubles, what happensto the mumber of onders placed per year? (hint: # of orders)T-Demand EOQ)
a. Declines by more than 50%
b, Declines by 50%
c. Increases by 50%
d. Does not change .
8. Instead of following the EOQ prescription of 150 pieces/order, a company orders 200 pieces at a time. This action would typically result in:
a. Higher total ordering cost, but lower total holding cost
b. Lower total ordering cost, but higher total holding cost
c. Lower total ordering cost and lower total holding cost
d. Higher total ordering cost and higher total holding cost
In: Other
In: Accounting
Doaktown Products manufactures fishing equipment for recreational uses. The Miramichi plant produces the company’s two versions of a special reel used for river fishing. The two models are the M-008, a basic reel, and the M-123, a new and improved version. Cost accountants at company headquarters have prepared costs for the two reels for the most recent period. The plant manager is concerned. The cost report does not coincide with her intuition about the relative costs of the two models. She has asked you to review the cost accounting and help her prepare a response to headquarters.
Manufacturing overhead is currently assigned to products based on their direct labor costs. For the most recent month, manufacturing overhead was $344,800. During that time, the company produced 14,800 units of the M-008 and 2,700 units of the M-123. The direct costs of production were as follows.
| M-008 | M-123 | Total | ||||
| Direct materials | $ | 118,400 | $ | 108,000 | $ | 226,400 |
| Direct labor | 118,400 | 54,000 | 172,400 | |||
Management determined that overhead costs are caused by three cost drivers. These drivers and their costs for last year were as follows.
| Activity Level | |||||||||
| Cost Driver | Costs | M-008 | M-123 | Total | |||||
| Number of machine-hours | $ | 179,800 | 8,000 | 2,000 | 10,000 | ||||
| Number of production runs | 70,000 | 20 | 20 | 40 | |||||
| Number of inspections | 95,000 | 25 | 25 | 50 | |||||
| Total overhead | $ | 344,800 | |||||||
Required:
a. How much overhead will be assigned to each product if these three cost drivers are used to allocate overhead? What is the total cost per unit produced for each product?
M-008
Total overhead?
Total unit cost- ?
M-123
Total overhead- ?
Total unit cost- ?
b. How much of the overhead will be assigned to each product if direct labor cost is used to allocate overhead? What is the total cost per unit produced for each product?
M-008
Total overhead- ?
Total unit cost- ?
M-123
Total overhead- ?
Total unit cost- ?
In: Accounting
1) With static materials, What happens when you bring each charged plastic strip near the paper pieces? Why does this happen?
2)Draw a free body diagram of the forces acting on the piece of paper.
In: Physics
Near the harbour the sea got polluted cause by industrial waste, gives a few examples of prevention for sea pollution cause by industrial waste and elaborate on it, and how can it still happen even though rules and regulation are implemented
In: Civil Engineering
If you were conducting the wire/compass experiment (Part A) near the equator instead of in Oregon, would it be necessary to use more or less wire current to cause the compass needle to deflect? (This is related to the dip angle) Explain why.
In: Physics
A survey of a sample of 26 hotels in New Orleans found that the
average hotel room rate s $88.42 with a standard deviation of $5.62
and another survey of 25 hotels in the Phoenix area found that the
average room rate is $80.61. Assume with a standard deviation of
$4.83. At α = 0.05, can it be concluded that there is a
significant difference in the rates?
Source: USA TODAY.
Make sure to state Ho, H1 and where the claim is
State the value of the test statistic
Calculate the p-value
Make a decision to reject Ho or fail to reject Ho
State your conclusion in words in the context of the claim
You may use your TI 84 but make sure to state the name of the test
you used.
When using calculator and when it comes to choose Yes or No for
pooled, keep it at the default No.
Here is what pooled means: If we assume that population variances
are equal we select YES and if we assume that population variances
are not equal, we select No. By default, use No unless if it is
specified otherwise.
In: Statistics and Probability
Because of staffing decisions, managers of the Gibson-Marimont Hotel are interested in the variability in the number of rooms occupied per day during a particular season of the year. A sample of 24 days of operation shows a sample mean of 299 rooms occupied per day and a sample standard deviation of 32 rooms.
What is the point estimate of the population variance?
Provide a 90% confidence interval estimate of the population
variance (to 1 decimal).
( ___,____ )
Provide a 90% confidence interval estimate of the population standard deviation (to 1 decimal).
(____,_____)
In: Statistics and Probability