Complete the following questions :

Cryon Corporation manufactures and sells a seasonal product that has a peak in sales in the third quarter. The following information reflects projections for Year 2 – the coming year – and the first two quarters of Year 3.

Units sell at $10 each. Budgeted sales for the next 6 quarters are outlined below.

Sales are collected in the following pattern: 75% are collected in the quarter the sales are made, and the remaining 25% are collected in the following quarter. On January 1, Year 2, the company had accounts receivable of $70,000, all of which will be collected in the first quarter of Year 2. Bad debts are negligible and can be ignored.

The company desires finished goods inventory at the end of each quarter equal to 30% of the budgeted unit sales for the next quarter. On December 31, Year 1, the company had 15,000 completed units on hand.

Five pounds of raw materials inventory is required to complete one unit of product. The company requires ending raw materials inventory at the end of each quarter equal to 10% of the following quarter’s production needs. On December 31, Year 1, the company had 38,000 pounds of raw material on hand.

Raw material cost is $0.80 per pound.

Required:

Prepare the following budgets and schedules for Year 2, showing quarterly figures:

A.Sales budget

B.Schedule of expected cash collections

C.Production budget

D.Direct materials budget that summarizes both pounds and dollars.

Finley designs and manufactures displays used in mobile devices. Serious flooding throughout the region affected ​Finleys' facilities. Inventory was completely​ ruined, and the​ company's computer​ system, including all accounting​ records, was destroyed.

Before the disaster recovery specialists clean the​ buildings,

Heather Bailey​, the company​ controller, is anxious to salvage whatever records she can to support an insurance claim for the destroyed inventory. She is standing in what is left of the Accounting Department wtih Tad Myers​, the cost accountant. "I didn't know mud could smell so​ bad,"Tad says.​ "What should I be looking​ for?" ​"Don't worry about beginning inventory​ numbers," responds Heather. ​"We'll get them from last​ year's annual report. We need​ first-quarter cost​ data." "I was working on the​ first-quarter results just before the storm​ hit," Tad says.​ "Look, my​ report's still in my desk drawer. But all I can make out is that for the first​ quarter, material purchases were $524,000 and that direct​ labor, manufacturing overhead​ (other than indirect​ materials), and total manufacturing costs to account for were $545,000​; $218,000​; and $1,508,000​, respectively.​ Wait, and cost of goods available for sale was $1,615,000​." ​"Great," says Heather. ​"I remember that sales for the period were approximately $1.6 million. Given our gross profit of 15​%, ​that's all you should​ need." Tad is not sure about​ that, but decides to see what he can do with this information.

the beginning inventory numbers are as follows:

He remembers several schedules he learned in college that may help him get started.

Requirement

Determine the ending inventories of raw​ materials, work in​ process, and finished goods. Assume that Raw Materials Inventory contains only direct materials.

Start by determining the ending inventory of raw materials by calculating the direct materials used.

​Next, determine the ending inventory of work in process by calculating the cost of goods manufactured.

​Finally, determine the ending inventory of finished goods by calculating the cost of goods manufactured.

Please answer the following questions:

1. When credit becomes more costly and less available, total spending for goods and services generally rise.

   True

   False

2. If prevailing interest rates, in the secondary markets. increase, the resale value of a fixed income contract (bond) decreases and vice versa.

   True

   False

3. The taxing and spending policies of the Federal Government designed to promote national ecomomic goals are known as "fiscal policy."

   True

   False

4. Most states exempt their own municipal securities from their own state and local taxes.

   True

   False

5. Insurance is the business of risk shifting.

   True

   False

6. Firm commitment underwriting is performed by an investment bank that has guaranteed the issuer a sum of money that will be raised by an Initial Public Offering

   True

   False

ami Tyler opened Tami’s Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler’s personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University.

Ms. Tyler is discouraged over the loss shown for the quarter, particularly because she had planned to use the statement as support for a bank loan. Another friend, a CPA, insists that the company should be using absorption costing rather than variable costing and argues that if absorption costing had been used the company probably would have reported at least some profit for the quarter.

At this point, Ms. Tyler is manufacturing only one product—a swimsuit. Production and cost data relating to the swimsuit for the first quarter follow:

Glob and Dream Company provides the budgeting information for the first two quarters of the coming year 2020;

The company expects to sell their units in the first quarter by RM 20 per unit and the price will increase by 25% in the second quarter. Based on the past experiences, the sales department in the company expects to sell about 35% of the total products for cash and only 80% of the sales on account will be collected in full in the first quarter and the remainder in the second quarter.

The company comes to an agreement with the suppliers that one-fourth of the total purchase in each quarter will be paid in the same quarter and the balance will be paid in the following quarter. Amongst the quarterly selling and administration expenses RM6,400 presents property taxes and depreciation. The property tax will be paid by the end of the third quarter however, RM40,000 part of income taxes will be paid on the second quarter. Of the remainder of the selling and administrative expenses; 50% will be paid in the quarter in which they are incurred and the other 50% will be paid in the following quarter. The company has a plan to expand its business and buy a new machine which will cost RM250,000 and it will be paid in the first

The beginning balances in the first quarter are Cash RM45000, Accounts receivable RM51000 and Account payable RM121,500 (RM102,000 for materials purchases and RM19,500 for selling and administrative expenses). Based on the company policy, it is important to maintain a minimum cash balance of RM 25,000 at the end of each quarter.

Required:

Prepare the cash budget of this company for the first and second quarter of the year 2020

Diane Buswel! is preparing the 201/ budget for one of Current Designs rotomolded kayaks Extensive meetings with members of the sales department and executive team have resulted in the following unit sales projections for 2017. Quarte 1,000 kayaks Quarter 2 1,500 kayaks Quarter 3 750 kayaks Quarter 4 750 kayaks Current Designs policy is to have finished goods ending inventory in a quarter equal to 20% of the next quarters anticipated sales. Preliminary sales projections for 2018 are 1,100 units for the first quarter and 1,500 units for the second quarter. Ending inventory of finished goods at December 31, 2016, will be 200 rotomolded kayak:s Production of each kayak requires 54 pounds of polyethylene powder and a finishing kit (rope, seat, hardware, etc.). Company policy is that the ending inventory of polyethylene powder should be 25% of the amount needed for production in the next quarter. Assume that the ending inventory of polyethylene powder on December 31,2016, is 19,400 pounds. The finishing kits can be assembled as they are needed. As a result, Current Designs does not maintain a significant inventory of the finishing kits The polyethylene powder used in these kayaks costs $1.50 per pound, and the finishing kits cost $170 each. Production of a single kayak requires 2 hours of time by more experienced, type I employees and 3 hours of finishing time by type II employees. The type I employees are paid $15 per hour, and the type II employees are paid $12 per hour Selling and administrative expenses for this line are expected to be $45 per unit sold plus $7,500 per quarter. Manufacturing overhead is assigned at 150% of labor costs Instructions Prepare the production budget, direct materials budget, direct labor budget, manufacturing overhead budget, and selling and administrative budget for this product line by quarter and in total for 2017

An experiment is planned to compare three treatments applied to shirts in a test of durable press fabric treatments to produce wrinkle-free fabrics. In the past formaldehyde had been used to produce wrinkle-free fabric, but it was considered an undesirable chemical treatment. This study is to consider three alternative chemicals: (a) PCA (1-2-3 propane tricarbolic acid), (b) BTCA tetracarboxilic acid), and (c) CA (citric acid). Four shirts will be used for each of the treatments. First, the treatments are applied to the shirts, which are then subjected to simulated wear and washing in a simulation machine. The chemical treatments will not contaminate one another if they are all placed in the same washing machine during the test. The machine can hold one to four shirts in a single simulation run. At the end of the simulation run each of the shirts is measured for tear and breaking strength of the fabric and how wrinkle-free they are after being subjected to the simulated wear and washing. The comparisons among the treatments can be affected by (a) the natural variation from shirt to shirt; (b) measurement errors; (c) variation in the application of the durable press treatment; and (d) variation in the run of the simulation of wear and washing by the simulation machine. Following is a brief description of three proposed methods of conducting this simple experiment.

Method I. The shirts are divided randomly into three groups of four shirts. Each group receives a durable press treatment as one batch and then each batch is processed in one run of the simulation machine. Each run of the simulation machine has four shirts that have receive and same treatment. There are three runs of the simulation machine.

Method II. The shirts are divided randomly into three treatment groups of four shirt each, and the durable press treatments are applied independently to single shirts. The shirts are grouped into four sets of three, one shirt from each durable press treatment in each of the four sets, and each set of three so constructed is used in one run of the simulation machine. There are four runs of the simulation machine.

Method III. The shirts are divided randomly into three groups of four shirts. The durable press treatments are applied independently to single shirts. The simulation of wear and washing is done as in Method I.

a. Which method do you favor?

b. Why do you favor the method you have chosen?

c. Briefly, what are the disadvantages of the other two methods?

Variances, Entries, and Income Statement
A summary of Glendale Company's manufacturing variance report for May 2016 follows:

Standard material cost per unit of product is 0.5 pounds at $9.90 per pound, and standard direct labor cost is 1.5 hours at $15.50 per hour. The total actual materials cost represents 4,900 pounds purchased at $10.20 per pound. Total actual labor cost represents 14,200 hours at $15.00 per hour. According to standards, variable overhead rate is applied at $3.20 per direct labor hour (based on a normal capacity of 15,000 direct labor hours or 10,000 units of product). Assume that all fixed overhead is applied to work in progress inventory.

a. Determine the following variances:

Do not use negative signs with any of your answers. Next to each variance answer, select either "F" for Favorable or "U" for Unfavorable.

b. Prepare general journal entries to record standard costs, actual costs, and related variances for material, labor, and overhead.

c. Prepare journal entries to record the transfer of all completed units to Finished Goods Inventory and the subsequent sale of 8,400 units on account at $54 each (assume no beginning finished goods inventory).

d. Prepare a partial income statement (through gross profit on sales) showing gross profit based on standard costs, the incorporation of variances, and gross profit based on actual costs.

Do not use negative signs with any of your answers below.

• Describe two goods, services, or activities that you currently enjoy but your marginal utility per dollar (or per unit of time) for the two goods is not equal.
• Be specific in describing these two goods, services, or activities.
• Use the rational spending rule to describe how you can re-arrange your spending (or time) in order to maximize your utility.
• You can simply state that you should spend more money (or time) on one thing and less money (or time) on the other.
• Describe what will happen to your marginal utility for each good (or activity) after you reallocate your spending (or time).