What is the current status of the IASB Conceptual Framework? Please provide background, recent developments, current status, and anticipated activities both near and long-term.
In: Accounting
Jarvene Corporation uses the FIFO method in its process costing system. The following data are for the most recent month of operations in one of the company’s processing departments:
| Units in beginning inventory | 440 |
| Units started into production | 4,260 |
| Units in ending inventory | 280 |
| Units transferred to the next department | 4,420 |
| Materials | Conversion | |||
| Percentage completion of beginning inventory | 70 | % | 30 | % |
| Percentage completion of ending inventory | 70 | % | 50 | % |
The cost of beginning inventory according to the company’s costing system was $7,896 of which $4,847 was for materials and the remainder was for conversion cost. The costs added during the month amounted to $179,388. The costs per equivalent unit for the month were:
| Materials | Conversion | |
| Cost per equivalent unit | $18.00 | $23.00 |
Required:
1. Compute the total cost per equivalent unit for the month.
2. Compute the equivalent units of material and conversion in the ending inventory.
3. Compute the equivalent units of material and conversion that were required to complete the beginning inventory.
4. Compute the number of units started and completed during the month.
5. Compute the cost of ending work in process inventory for materials, conversion, and in total for the month.
6. Compute the cost of the units transferred to the next department for materials, conversion, and in total for the month.
In: Accounting
Jarvene Corporation uses the FIFO method in its process costing system. The following data are for the most recent month of operations in one of the company’s processing departments:
| Units in beginning inventory | 390 |
| Units started into production | 4,300 |
| Units in ending inventory | 260 |
| Units transferred to the next department | 4,430 |
| Materials | Conversion | |||
| Percentage completion of beginning inventory | 60 | % | 40 | % |
| Percentage completion of ending inventory | 70 | % | 50 | % |
The cost of beginning inventory according to the company’s costing system was $7,805 of which $4,801 was for materials and the remainder was for conversion cost. The costs added during the month amounted to $180,096. The costs per equivalent unit for the month were:
| Materials | Conversion | |
| Cost per equivalent unit | $18.00 | $23.00 |
Required:
1. Compute the total cost per equivalent unit for the month.
2. Compute the equivalent units of material and conversion in the ending inventory.
3. Compute the equivalent units of material and conversion that were required to complete the beginning inventory.
4. Compute the number of units started and completed during the month.
5. Compute the cost of ending work in process inventory for materials, conversion, and in total for the month.
6. Compute the cost of the units transferred to the next department for materials, conversion, and in total for the month.
In: Accounting
Jarvene Corporation uses the FIFO method in its process costing system. The following data are for the most recent month of operations in one of the company’s processing departments:
| Units in beginning inventory | 360 |
| Units started into production | 4,280 |
| Units in ending inventory | 320 |
| Units transferred to the next department | 4,320 |
| Materials | Conversion | |||
| Percentage completion of beginning inventory | 80 | % | 20 | % |
| Percentage completion of ending inventory | 90 | % | 30 | % |
The cost of beginning inventory according to the company’s costing system was $7,814 of which $4,883 was for materials and the remainder was for conversion cost. The costs added during the month amounted to $177,672. The costs per equivalent unit for the month were:
| Materials | Conversion | |
| Cost per equivalent unit | $18.00 | $23.00 |
Required:
1. Compute the total cost per equivalent unit for the month.
2. Compute the equivalent units of material and conversion in the ending inventory.
3. Compute the equivalent units of material and conversion that were required to complete the beginning inventory.
4. Compute the number of units started and completed during the month.
5. Compute the cost of ending work in process inventory for materials, conversion, and in total for the month.
6. Compute the cost of the units transferred to the next department for materials, conversion, and in total for the month.
In: Accounting
arvene Corporation uses the FIFO method in its process costing system. The following data are for the most recent month of operations in one of the company’s processing departments:
| Units in beginning inventory | 430 |
| Units started into production | 4,270 |
| Units in ending inventory | 310 |
| Units transferred to the next department | 4,390 |
| Materials | Conversion | |||
| Percentage completion of beginning inventory | 60 | % | 40 | % |
| Percentage completion of ending inventory | 70 | % | 50 | % |
The cost of beginning inventory according to the company’s costing system was $7,835 of which $4,830 was for materials and the remainder was for conversion cost. The costs added during the month amounted to $178,861. The costs per equivalent unit for the month were:
| Materials | Conversion | |
| Cost per equivalent unit | $18.00 | $23.00 |
Required:
1. Compute the total cost per equivalent unit for the month.
2. Compute the equivalent units of material and conversion in the ending inventory.
3. Compute the equivalent units of material and conversion that were required to complete the beginning inventory.
4. Compute the number of units started and completed during the month.
5. Compute the cost of ending work in process inventory for materials, conversion, and in total for the month.
6. Compute the cost of the units transferred to the next department for materials, conversion, and in total for the month.
In: Accounting
Jarvene Corporation uses the FIFO method in its process costing system. The following data are for the most recent month of operations in one of the company’s processing departments:
| Units in beginning inventory | 380 |
| Units started into production | 4,260 |
| Units in ending inventory | 260 |
| Units transferred to the next department | 4,380 |
| Materials | Conversion | |||
| Percentage completion of beginning inventory | 80 | % | 20 | % |
| Percentage completion of ending inventory | 80 | % | 40 | % |
The cost of beginning inventory according to the company’s costing system was $7,887 of which $4,867 was for materials and the remainder was for conversion cost. The costs added during the month amounted to $178,496. The costs per equivalent unit for the month were:
| Materials | Conversion | |
| Cost per equivalent unit | $18.00 | $23.00 |
Required:
1. Compute the total cost per equivalent unit for the month.
2. Compute the equivalent units of material and conversion in the ending inventory.
3. Compute the equivalent units of material and conversion that were required to complete the beginning inventory.
4. Compute the number of units started and completed during the month.
5. Compute the cost of ending work in process inventory for materials, conversion, and in total for the month.
6. Compute the cost of the units transferred to the next department for materials, conversion, and in total for the month.
In: Accounting
The oil company located near Germany wants to install a new pipeline to connect a storage tank to an existing pump 1,000 feet away. Three possible diameters are being considered to make the pipeline, the related costs of which are presented below:
The company is presumed to apply a 10% interest rate on its projects. Both maintenance and the annual cost of pumping are considered as expenses that occur at the end of the year (conventional flows).
For what number of pumping hours per year will the 4 and 6 inch pipelines be equally economical?
You must show in detail how you got your result. It is important that you submit the relevant evidence (cash flow equations, Excel, photo, etc.) in the link provided by this question for correction.
| Pipeline diameter |
4 pulg. |
6 pulg. |
8 pulg. |
|
Initial cost |
$2,000 |
$3,000 |
$4,000 |
| Maintenance cost / year |
600 |
500 |
400 |
| Cost of pumping per hour |
2.70 |
1.30 |
1.00 |
| Residual value |
100 |
150 |
300 |
| Useful life (years) |
10 |
10 |
10 |
In: Accounting
In: Civil Engineering
Computing and Recording Interest Capitalization
The following information is from Bowin Inc. for a long-term construction project that is expected to be completed in January 2021. The construction project is for a building intended for the company’s own use. The capital expenditure on January 1, 2020, is for the purchase of land for the building site. No new construction loans were opened for the project in 2020. All debt was outstanding for the full year.
Capital Expenditures for 2020
| Date | Amount |
|---|---|
| Jan. 1, 2020 | $ 24,000 |
| Mar. 31, 2020 | 720,000 |
| June 30, 2020 | 1,440,000 |
| Nov. 30, 2020 | 720,000 |
Outstanding Debt in 2020
| Debt | Debt Amount | Interest Rate |
|---|---|---|
| Note payable | $800,000 | 8% |
| Note payable | 640,000 | 8% |
| Bond payable | 1,600,000 | 10% |
| Note payable | 400,000 | 9% |
Answer the following questions:
a. Compute interest to be capitalized and the interest to
be expensed in 2020.
b. Prepare the entry to record the construction
expenditures and interest for 2020.
c. Prepare the entry for depreciation in 2021 assuming
that the project is completed on January 1, 2021. Assume that the
building has a useful life of 30 years, and that the company uses
the straight-line depreciation method.
Note: Do not round until your final answers, then round to nearest whole number.
a.
| Amount of interest to be capitalized | Answer |
| Amount of interest to expense |
b.
Land
Construction in process
cash and payables
c.
In: Accounting
Your firm has been appointed for the first time to
carry out the audit of Sarooj Construction, a small
construction firm in Muscat, for the year ending December 31, 2019.
Sarooj Construction has been in
operations for the last five years. It was doing well on the first
two years but competition affected the
business and they started to struggle from the third year up to
this year, their fifth year in operation.
As part of knowing the business, you communicated with their
previous auditor. Your
communication revealed that previous test of controls done
indicated material weakness in the cash
receipts from customers and disbursement for expenses. As the
business is small, Sarooj
Construction was not able to build stability and has been facing
continuous losses since last year.
The owner has been trying hard to improve the situation. He hired a
manager who has been given
wide powers for hiring and firing the staff and make all
significant business decisions. The owner is
aware that weak financial position will prevent the company from
obtaining financial assistance from
banks especially now that they need it. Furthermore, the owner is
considering creating an internal
audit department to improve their internal control. The owner
expects to receive a report on
weaknesses on the design and implementation of internal controls on
top of the usual audit of
financial statements.
Required: Discuss matters that you would consider in developing the
audit strategy for Sarooj
Construction.
In: Economics