1. Mainstream economics teaches us that market competition is the most efficient way to regulate the production and distribution of commodities. And yet, many who are critical of President Trump’s policies have argued for the government to command enterprises to produce what is needed for this public health emergency and then distribute the goods according to need.

In one paragraph, briefly give me at least two reasons why it might make sense for the government to suspend the market and take control of the production and distribution of goods.

In a second paragraph, explain what problems a government’s command and control policies might cause.

In a final paragraph, tell me whether or not you think the critics of President Trump are correct.

Flow of Costs and Income Statement

Technology Accessories Inc. is a designer, manufacturer, and distributor of accessories for consumer electronic products. Early in 20Y3, the company began production of a leather cover for tablet computers, called the iLeather. The cover is made of stitched leather with a velvet interior and fits snugly around most tablet computers. In January, $760,000 was spent on developing marketing and advertising materials. For the first six months of 20Y3, the company spent an additional $1,407,000 promoting the iLeather. The product was ready for manufacture on January 21, 20Y3.

Technology Accessories Inc. uses a job order cost system to accumulate costs for the iLeather. Direct materials unit costs for the iLeather are as follows:

The actual production process for the iLeather is fairly straightforward. First, leather is brought to a cutting and stitching machine. The machine cuts the leather and stitches an exterior edge into the product. The machine requires one hour per 130 iLeathers.

After the iLeather is cut and stitched, it is brought to assembly, where assembly personnel affix the velvet interior and pack the iLeather for shipping. The direct labor cost for this work is $0.50 per unit.

The completed packages are then sold to retail outlets through a sales force. The sales force is compensated by a 20% commission on the wholesale price for all sales.

Total completed production was 550,000 units during the year. Other information is as follows:

Factory overhead cost is applied to jobs at the rate of $1,300 per machine hour. There were an additional 20,000 cut and stitched iLeathers waiting to be assembled on December 31, 20Y3.

In your computations, if required, round interim per unit costs to two decimal places and final answers to the nearest whole dollar.

Required:

1. Prepare an annual income statement for the iLeather product.

2. Determine the balances in the finished goods and work in process inventories for the iLeather product on December 31, 20Y3.

After obtaining an understanding of internal control and assessing control risk of an entity an auditor decided to perform tests of controls. The auditor most likely decided that:

A The available evidence obtained through tests of controls would not support an assessment of control risk as high.

B It would be inefficient to perform tests of controls given they would not result in reduced substantive tests.

C The assessed level of inherent risk exceeded the assessed level of control risk.

D Control risk should be assessed as low for key financial report assertions.

 
Question (ii)
When control risk is assessed as less than high, tests of control should be undertaken with regard to?
A Design of internal control.

B Effectiveness and continuity of controls that have been determined to exist.

C Both design and operation of internal control.

D Both the control environment and the entity’s risk assessment process.

Question (iii)
Which of the following audit tests would be regarded as test of controls?

A Performing bank reconciliations for the client’s trading account.

B Observing the client’s warehouse staff checking shipments.

C Sending an external confirmation to a debtor to check the outstanding balance at year end.

D Counting inventory and checking that the quantity is accurately recorded in the inventory records.

Question (iv)
Which of the following is the most effective control activity to detect vouchers that were prepared for the payment of goods that were not received?

A Compare goods received with goods requisitioned in the receiving department.

B Count goods upon receipt in the storeroom.

C Verify vouchers for accuracy and approval in the internal audit department.

D Match purchase order, receiving report and supplier’s invoice for each voucher in the accounts payable department.

Finch Pointers Corporation expects to begin operations on January 1, Year 1; it will operate as a specialty sales company that sells laser pointers over the Internet. Finch expects sales in January Year 1 to total $370,000 and to increase 10 percent per month in February and March. All sales are on account. Finch expects to collect 65 percent of accounts receivable in the month of sale, 20 percent in the month following the sale, and 15 percent in the second month following the sale.

c, prepare a cash receipts schedule for the first quarter of year 1

d. determine the amount of accounts receivable as of march 31, year 1

The following information is for a collateralized mortgage obligation (CMO). Tranche A of $50 million receives quarterly payments at 9 percent per year, tranche B of $100 million receives quarterly payments at 10 percent per year, and tranche C of $50 million receives quarterly payments at 11 percent per year.

3. If at the end of the first quarter, the CMO trustee receives total cash flows of $8 million, how are they distributed among the three tranches? (0.2 points)

5. What is the principal outstanding on Tranche A, Tranche B, and Tranche C after the end of year payment in the previous question? (0.2 points)

1. a) Mulwa Ltd a manufacturing company produced 10,000 units of 2kg unga product during the first quarter of 2013. The following additional information is also provided

• Direct material – ksh 8
• Direct labour - ksh 4
• Variable manufactury – 2
• Fixed manufacturing cost – ksh 36,000
• Selling and administration cost – ksh 5,000
• Selling price – ksh 20 per cent
• Closing stock at the end of the period = 1000 units.

Required:

1. Determine the unit production cost of the product using marginal and absorption costing methods                                                     
2. Prepare an income statement for the period using absorption and marginal cost techniques.                                                              

1: TIME DEPOSITS ARE PART OF THE MI DEFINITION MONEY

TRUE OR FALSE?

2: WHAT ARE THE TWO WAYS IN WHICH NEW MONEY IS CREATED?

A: NEW SAVINGS ACCOUNT AND ISSUING GOVERNMENT SECURITIES

B: NEW CHECKING ACCOUNT AND ISSUING GOVERNMENT SECURITIES

C: NEW SAVINGS ACCOUNT AND RETIRING GOVERNMENT SECURITIES

D: NEW CHECKING ACCOUNT AND RETIRING GOVERNMENT SECURITIES

3:the nominal interet rate minus the exprected rate of inflaiton is defined as:

a: the discount rate

b: the coupon rate

c: the federal funds rate

d; the real interest rate

4: at what point would an economy move from inflation to hyperinflation

a: when there is a rapid increas in prices

b: when there is a rapid decline in pricies

c: when there is a rapid increase in prices along with changes in buying behavior

d: when there is a rapid decline in prices along with changes in buying behavior

5: in what ways is money a better system for the day to day functioning of hthe economy than a barter system:?

a: money allowes for more efficient pricing of goods and servies as compared to barter system

b: money allows for the direct exchange of goods and services for other goods and services as cmpared to a barter system c

c: money is a system of last resort when there is hyperinflation as compared to barter system

d: money allows for thousands of pricing variations when exhaning goods and services compared to a barter system

5: how do we express GDP as income?

a: Y= C+I+G+(X-M)

B: Y=C+I+T+(X-M)

C: Y=C+S+G

D: Y=C+S+T

6: which insitituion is responsible for the manufacturing of money?

a: the federal reserve bank

b: the US banking committee

c: the federal open market committee

d: the US treasury

8: YOU HAVE 5000.00 AVAILABLE FOR DEPOSIT INTO A SAVINGS ACCOUNT TODAY AND CAN CHOOSE TO MAKE THE DEPOSIT IN AN ACCOUNT THAT OFFERS EITHER SIMPLE OR COMPOUNDED INTEREST. IF BOTH ACCOUNTS OFFER AN 8.5% ANNUAL RATE AND YOU REQUIRE THE FUNDS IN 5 YEARS , WHAT WILL BE THE DIFFERENCE BETWEEN THE FINAL BALANCES IN EACH ACCOUNT?

A: $67.42

B: $189.17

C: 393.28

D: NO DIFFERENCE

9: WHAT IS THE ENDING BALANCE OF $500.00 DEPOSITED INTO A SAVINGS ACCOUNT TODAY THAT IS HELD FOR A TOTAL OF 8 YEARS AND IS PAYING 4.25% INTEREST COMPOUNDED ANNUALLY?

A: 615.65

b: 357.15

c: 700.00

d:406.25

10: an increase or decrease in quantity supplied or demanded represents supply/ demand curve; an increase or decrease in supply or demand represents supply/demand curve

a: movement along a; a shift in the entire

b: a change in the slope of a; a new

c: a shift of the entire; movement along

d: a new; a change in the slope of a

10: In the US what is considered as the most significant part of the GDP?

a: net exports

b: government spending

c: investement

d consumption

1. Which concept would you use to explain why investment spending did not grow strongly between 2011 and 2014 although interest rates were very low? Think about what drives investment spending and use a certain principle we covered in the chapter titled [Income and Expenditure] ( Around150 words)