Company manufactures car seats in its Hartford plant. Each car seat passes through the assembly department and testing department. This problem focuses on the testing department. Direct materials are added when the testing department process is 95​% complete. Conversion costs are added evenly during the testing​ department's process. As work in assembly is​ completed, each unit is immediately transferred to testing. As each unit is completed in​ testing, it is immediately transferred to Finished Goods. St. Germaine Company uses the​ weighted-average method of process costing. Data for the testing department for October 2017 are as​ follows:

aDegree of​ completion: transferred-in​ costs, ?%; direct​ materials, ?%; conversion​ costs,75​%.

bDegree of​ completion: transferred-in​ costs, ?%; direct​ materials, ?%; conversion​ costs, 60​%.

St. Germaine Company manufactures car seats in its Albany plant. Each car seat passes through the assembly department and testing department. This problem focuses on the testing department. Direct materials are added when the testing department process is 95% complete. Conversion costs are added evenly during the testing​ department's process. As work in assembly is​ completed, each unit is immediately transferred to testing. As each unit is completed in​ testing, it is immediately transferred to Finished Goods. St. Germaine Company uses the​ weighted-average method of process costing. Data for the testing department for October 2017 are as​ follows:

a.) Degree of​ completion: transferred-in​ costs, ?%; direct​ materials, ?%; conversion​ costs, 65​%.

b.) Degree of​ completion: transferred-in​ costs, ?%; direct​ materials, ?%; conversion​ costs, 45​%.

Questions:

1.) What is the percentage of completion for​ (a) transferred-in costs and direct materials in beginning​ work-in-process inventory and​ (b) transferred-in costs and direct materials in ending​ work-in-process inventory?

2.) For each cost​ category, compute equivalent units in the testing department. Show physical units in the first column of your schedule.

3.) For each cost​ category, summarize total testing department costs for October 2017​, calculate the cost per equivalent​ unit, and assign costs to units completed​ (and transferred​out) and to units in ending work in process.

4.) Prepare journal entries for October transfers from the assembly department to the testing department and from the testing department to Finished Goods.

During January, Luxury Cruise Lines incurs employee salaries of $2.2 million. Withholdings in January are $168,300 for the employee portion of FICA, $330,000 for federal income tax, $137,500 for state income tax, and $22,000 for the employee portion of health insurance (payable to Blue Cross Blue Shield). The company incurs an additional $136,400 for federal and state unemployment tax and $66,000 for the employer portion of health insurance.

Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars, not in millions (i.e. 5 should be entered as 5,000,000).)

a. Record the employee salary expense, withholdings, and salaries payable.

options for general journal - No Journal Entry Required, Accounts Payable, Accounts Receivable, Advertising Expense, Allowance for Uncollectible Accounts, Bad Debt Expense, Cash, Common Stock, Contingent Liability, Deferred Revenue, Delivery Expense, FICA Tax Payable, Fringe Benefits Payable, Gain, Income Tax Expense, Income Tax Payable, Insurance Expense, Interest Expense, Interest Payable, Interest Receivable, Interest Revenue, Loss, Notes Payable, Notes Receivable, Payroll Tax Expense, Property Tax Expense, Rent Expense, Repairs and Maintenance Expense, Retained Earnings, Salaries Expense, Salaries Payable, Sales Revenue, Sales Tax Payable, Service Fee Expense, Service Revenue, Supplies, Supplies Expense, Unemployment Tax Payable, Utilities Expense, Utilities Payable, Warranty Expense, Warranty Liability

b. Record the employer-provided fringe benefits.

c. Record the employer payroll taxes.

Condé Nast Traveler conducts an annual survey in which readers rate their favorite cruise ship. All ships are rated on a 100-point scale, with higher values indicating better service. A sample of 37 ships that carry fewer than 500 passengers resulted in an average rating of 85.36 , and a sample of 44 ships that carry 500 or more passengers provided an average rating of 81.9. Assume that the population standard deviation is 4.59 for ships that carry fewer than 500 passengers and 3.96 for ships that carry 500 or more passengers.

a. What is the point estimate of the difference between the population mean rating for ships that carry fewer than 500 passengers and the population mean rating for ships that carry 500 or more passengers?

b. At 95% confidence, what is the margin of error?

c. What is a 95% confidence interval estimate of the difference between the population mean ratings for the two sizes of ships?

Condé Nast Traveler conducts an annual survey in which readers rate their favorite cruise ship. All ships are rated on a 100-point scale, with higher values indicating better service. A sample of ships that carry fewer than 500 passengers and a sample of ships that carry 500 or more passengers is provided in the Microsoft Excel Online file below (Condé Nast Traveler, February 2008).

Round your all answers to two decimal places.

1. What is the point estimate of the difference between the population mean rating for ships that carry fewer than 500 passengers and the population mean rating for ships that carry 500 or more passengers?

2. At 95% confidence, what is the margin of error?

3. What is a 95% confidence interval estimate of the difference between the population mean ratings for the two sizes of ships?

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Condé Nast Traveler conducts an annual survey in which readers rate their favorite cruise ship. All ships are rated on a 100-point scale, with higher values indicating better service. A sample of 36 ships that carry fewer than 500 passengers resulted in an average rating of 85.36, and a sample of 44ships that carry 500 or more passengers provided an average rating of 81.4 . Assume that the population standard deviation is  for 4.52 ships that carry fewer than 500 passengers and 3.91 for ships that carry 500 or more passengers.

Round your all answers to two decimal places.

a. What is the point estimate of the difference between the population mean rating for ships that carry fewer than  passengers and the population mean rating for ships that carry  or more passengers?

b. At  confidence, what is the margin of error?

c. What is a  confidence interval estimate of the difference between the population mean ratings for the two sizes of ships?
to

Condé Nast Traveler conducts an annual survey in which readers rate their favorite cruise ship. All ships are rated on a 100-point scale, with higher values indicating better service. A sample of 37 ships that carry fewer than 500 passengers resulted in an average rating of 85.36, and a sample of 44 ships that carry 500 or more passengers provided an average rating of 81.40. Assume that the population standard deviation is 4.55 for ships that carry fewer than 500 passengers and 3.97 for ships that carry 500 or more passengers.

At a α = 0.01, what is your conclusion?

Group of answer choices

A.Reject H0, since p-value < .01

B.Do not reject H0, since p-value < .01

C.Reject H0, since p-value > .01

D.Do not reject H0, since p-value > .01

Condé Nast Traveler conducts an annual survey in which readers rate their favorite cruise ship. All ships are rated on a 100-point scale, with higher values indicating better service. A sample of 37 ships that carry fewer than 500 passengers resulted in an average rating of 85.36, and a sample of 44 ships that carry 500 or more passengers provided an average rating of 81.40. Assume that the population standard deviation is 4.55 for ships that carry fewer than 500 passengers and 3.97 for ships that carry 500 or more passengers.

1. What is the p-value of the hypothesis test. Round your answer to 4 decimal places.

2. What is the value of the test statistic ( z-value of p ¯ 1- p ¯ 2). Round to 4 decimal places.

3. What are the null and alternative hypotheses to test whether there is a difference between the population proportions for the two years?

options:

H₀: p₁ - p₂  0 and H_a: p₁ - p₂ > 0 ;

H₀: p₁ - p₂ = 0 and H_a: p₁ - p₂  0 ;

H₀: p₁ - p₂  0 and H_a: p₁ - p₂ < 0 ;

H₀: p₁ - p₂ = 0 and H_a: p₁ - p₂ > 0

4. At a α = 0.01, what is your conclusion?

options:

Do not reject H0, since p-value < .01 ;

Reject H0, since p-value > .01 ;

Reject H0, since p-value < .01 ;

Do not reject H0, since p-value > .01

Condé Nast Traveler conducts an annual survey in which readers rate their favorite cruise ship. All ships are rated on a 100-point scale, with higher values indicating better service. A sample of ships that carry fewer than 500 passengers and a sample of ships that carry 500 or more passengers is provided in the Microsoft Excel Online file below (Condé Nast Traveler, February 2008).

What is the point estimate of the difference between the population mean rating for ships that carry fewer than 500 passengers and the population mean rating for ships that carry 500 or more passengers?

At 95% confidence, what is the margin of error?

What is a 95% confidence interval estimate of the difference between the population mean ratings for the two sizes of ships?

Costa Cruise Lines (CCL) (a U.S. company based in Miami, FL) purchased a ship from Komatsu Heavy Equipment for ¥700 million – payable in 1 year.  The current spot rate is ¥110/$ and the one-year forward rate is ¥108/$.  

For borrowing (or depositing), the annual interest rate in Japan is 6%.  In the United States, the rate is 2%.

Yen call and put options, with a 1-year expiration date and an exercise price of $.009 are available. The price (premium) of the call option is $.002 per yen.  The price (premium) of the put option is $.001 per yen.

* Assume that one year from today, the spot rate for yen is either ¥130/$ or ¥105/$.  If CCL decides to hedge with options, should they use a call or a put?  If CCL follows the appropriate options hedging strategy, what is CCL’s net cost (in $US) to purchase the ship if the spot rate is ¥130/$?  What is the net cost if the spot rate is ¥105/$?  (Be sure to include the cost of buying the option in your answer.)

Recommended strategy (check one box):  Call options….□                   Put options….□

Net Cost if ¥130/$ = $____________________    Net cost if ¥105/$  = $____________________

* If CCL decides to hedge with a forward contract, what will the ship cost (in $US)?

* If CCL decides to use a money market hedge, what will the ship cost (in $US)?