Express Distribution markets CDs of the performing artist Fishe. At the beginning of October, Express had in beginning inventory 2,000 of Fishe’s CDs with a unit cost of $7. During October, Express made the following purchases of Fishe’s CDs.

During October, 10,900 units were sold. Express uses a periodic inventory system.

I need help figuring out how to use the FIFO method for cost of goods sold and the ending inventory.

Susan is a paralegal in a one attorney office. She works for Mr. Robert Sharky. One Friday afternoon, attorney Sharky left early to take a flight to Las Vegas. He planned to be back on Monday. Bob Jones, one of the firm’s divorce clients, runs into the office and tells Susan he just shot his ex-wife when she came at him with a knife after an argument. He throws the smoking gun on the desk and asks Susan to hide it for him. Susan takes the gun and puts it into her desk drawer and locks the drawer. She plans to discuss the issue with her attorney when he gets back from his vacation on Monday. She tells Bob that the firm can help him avoid jail time since the wife instigated it and Bob shot her in self-defense. Bob leaves.

That night Susan joins her friends for happy hour and tells them about what happened but she does not mention Bob’s name. After Susan tells the story, a news flash comes on the television at the bar and the story says the suspect in the wife shooting is Bob.

Use the American Bar Association Model Rules of Professional Conduct or the state of GA ethics rules and spot all the issues in this scenario. What did Susan do wrong and what rules did she violate? Should she have informed the police?

E9-13 Determining Actual Costs, Standard Costs, and Variances [LO 9-3, 9-4]

Amber Company produces iron table and chair sets. During October, Amber’s costs were as follows:

Required:
1. Calculate the total cost of purchases for October.



2. Compute the direct materials price variance based on quantity purchased. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.)



3. Calculate the direct materials quantity variance based on quantity used. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.)

4. Compute the standard direct labor rate for October. (Round your answer to 2 decimal places.)

5. Compute the direct labor efficiency variance for October. (Round your intermediate calculation to 2 decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.)

Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the company’s expected costs:

Question 5

Suppose that a September put option with a strike price of $95 costs $10.0. Under what circumstances will the seller (or writer) of the option earn a profit? Let S equal the price of the underlying.

S > 85.0

S < 105.0

S < 95  

S > 95

Question 6

Suppose you enter into a short position to sell March Gold for $255 per ounce. The contract size is 100 ounces, the initial margin is $2550 and the maintenance margin is $1020. At what price will you receive a margin call?

254.93

270.3

255.07

239.7

Question 7

Suppose that on October 24 you buy 12 March gold futures contracts for $250 per ounce. At 11:00 am on October 25 you buy 10 more contracts for $245.5 ounce. At the close of trading on October 25, gold futures settle for $239.0 ounce. If the contract size is 100 ounces and the initial margin equals 2500, how much do you gain or lose as of the close?

-6700.0

-19700.0

19700.0

6700.0

Question 8

Suppose that on October 24 you Sell 8 March gold futures contracts for $345 per ounce. At 11:00 am on October 25 you buy 5 March contracts for $347.0 ounce. At the close of trading on October 25, gold futures settle for $348.0 ounce. If the contract size is 100 ounces and the initial margin equals 3450, how much do you gain or lose as of the close?

-1900.0

1900.0

100.0

-100.0

Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the company’s expected costs:

For example, electricity costs are $2,150 per month plus $0.20 per car washed. The company expects to wash 8,700 cars in October and to collect an average of $6.60 per car washed.

Auto Lavage’s actual level of activity was 8,800 cars. The actual revenues and expenses for October are given below:

Required:
1. Prepare a flexible budget performance report for October. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).)

2. Prepare a comprehensive performance report for October. Assume that the static budget for October was based on an activity level of 8,700 cars. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).)

Kaeding Company manufactures car seats in its Hartford plant. Each car seat passes through the assembly department and the testing department. This problem focuses on the assembly department.

Superscript aDegree of​ completion: direct​ materials, ?%; conversion​ costs, 50​%.

Superscript bDegree of​ completion: direct​ materials, ?%; conversion​ costs, 70​%.

Requirement 1. For each cost​ category, compute equivalent units in the assembly department. Show physical units in the first column of your schedule.

Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the company’s expected costs:

For example, electricity costs are $3,450 per month plus $0.30 per car washed. The company expects to wash 9,900 cars in October and to collect an average of $7.80 per car washed.

Auto Lavage’s actual level of activity was 10,000 cars. The actual revenues and expenses for October are given below:

Prepare a flexible budget performance report for October. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).)

2. Prepare a comprehensive performance report for October. Assume that the static budget for October was based on an activity level of 9,900 cars. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).)

How would you solve for octahedral splitting?

1. Clive & Co. will deposit $2 million at the end of each of the next three years in a structured product expecting to pay 9% interest. Clive and Co. currently has $800,000 in the trust. How much will Clive & Co. have in 3 years?