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Web Wizard, Inc., has provided information technology services for several years. For the first two months of the current year, the company has used the percentage of credit sales method to estimate bad debts. At the end of the first quarter, the company switched to the aging of accounts receivable method. The company entered into the following partial list of transactions during the first quarter.

1. During January, the company provided services for $46,000 on credit.
2. On January 31, the company estimated bad debts using 1 percent of credit sales.
3. On February 4, the company collected $23,000 of accounts receivable.
4. On February 15, the company wrote off a $100 account receivable.
5. During February, the company provided services for $36,000 on credit.
6. On February 28, the company estimated bad debts using 1 percent of credit sales.
7. On March 1, the company loaned $2,400 to an employee, who signed a 6% note, due in 6 months.
8. On March 15, the company collected $100 on the account written off one month earlier.
9. On March 31, the company accrued interest earned on the note.
10. On March 31, the company adjusted for uncollectible accounts, based on an aging analysis (below). Allowance for Doubtful Accounts has an unadjusted credit balance of $1,260.

Required:

1. For items (a)–(j), analyze the transaction to determine effects on specific financial statement accounts and the overall accounting equation. (Enter any decreases to Assets, Liabilities, or Stockholders Equity with a minus sign. Do not round intermediate calculations.)

Web Wizard, Inc., has provided information technology services for several years. For the first two months of the current year, the company has used the percentage of credit sales method to estimate bad debts. At the end of the first quarter, the company switched to the aging of accounts receivable method. The company entered into the following partial list of transactions during the first quarter.

1. During January, the company provided services for $40,000 on credit.
2. On January 31, the company estimated bad debts using 1 percent of credit sales.
3. On February 4, the company collected $20,000 of accounts receivable.
4. On February 15, the company wrote off a $100 account receivable.
5. During February, the company provided services for $30,000 on credit.
6. On February 28, the company estimated bad debts using 1 percent of credit sales.
7. On March 1, the company loaned $2,400 to an employee, who signed a 6% note, due in 6 months.
8. On March 15, the company collected $100 on the account written off one month earlier.
9. On March 31, the company accrued interest earned on the note.
10. On March 31, the company adjusted for uncollectible accounts, based on an aging analysis (below). Allowance for Doubtful Accounts has an unadjusted credit balance of $1,200.

Required:

1. For items (a)–(j), analyze the transaction to determine effects on specific financial statement accounts and the overall accounting equation. (Enter any decreases to Assets, Liabilities, or Stockholders Equity with a minus sign. Do not round intermediate calculations.)

Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as shown by its June contribution format income statement below:

*Contains direct materials, direct labor, and variable manufacturing overhead.

Janet Dunn, who has just been appointed general manager of the Westwood Plant, has been given instructions to “get things under control.” Upon reviewing the plant’s income statement, Ms. Dunn has concluded that the major problem lies in the variable cost of goods sold. She has been provided with the following standard cost per swimming pool:

*Based on machine-hours.

During June the plant produced 5,000 pools and incurred the following costs:

1. Purchased 24,000 pounds of materials at a cost of $2.65 per pound.

2. Used 18,800 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be ignored.)

3. Worked 4,100 direct labor-hours at a cost of $6.50 per hour.

4. Incurred variable manufacturing overhead cost totaling $7,560 for the month. A total of 2,800 machine-hours was recorded.

It is the company’s policy to close all variances to cost of goods sold on a monthly basis.

Required:

1. Compute the following variances for June:

a. Materials price and quantity variances.

b. Labor rate and efficiency variances.

c. Variable overhead rate and efficiency variances.

2. Summarize the variances that you computed in (1) above by showing the net overall favorable or unfavorable variance for the month.

Problem 9-18 Comprehensive Variance Analysis [LO9-4, LO9-5, LO9-6]

Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as shown by its June contribution format income statement below:

*Contains direct materials, direct labor, and variable manufacturing overhead.

Janet Dunn, who has just been appointed general manager of the Westwood Plant, has been given instructions to “get things under control.” Upon reviewing the plant’s income statement, Ms. Dunn has concluded that the major problem lies in the variable cost of goods sold. She has been provided with the following standard cost per swimming pool:

*Based on machine-hours.

During June the plant produced 5,000 pools and incurred the following costs:

1. Purchased 24,000 pounds of materials at a cost of $2.65 per pound.

2. Used 18,800 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be ignored.)

3. Worked 4,100 direct labor-hours at a cost of $6.50 per hour.

4. Incurred variable manufacturing overhead cost totaling $7,560 for the month. A total of 2,800 machine-hours was recorded.

It is the company’s policy to close all variances to cost of goods sold on a monthly basis.

Required:

1. Compute the following variances for June:

a. Materials price and quantity variances.

b. Labor rate and efficiency variances.

c. Variable overhead rate and efficiency variances.

2. Summarize the variances that you computed in (1) above by showing the net overall favorable or unfavorable variance for the month.

Problem 9-18 Comprehensive Variance Analysis [LO9-4, LO9-5, LO9-6]

Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as shown by its June contribution format income statement below:

*Contains direct materials, direct labor, and variable manufacturing overhead.

Janet Dunn, who has just been appointed general manager of the Westwood Plant, has been given instructions to “get things under control.” Upon reviewing the plant’s income statement, Ms. Dunn has concluded that the major problem lies in the variable cost of goods sold. She has been provided with the following standard cost per swimming pool:

*Based on machine-hours.

During June the plant produced 5,000 pools and incurred the following costs:

1. Purchased 24,000 pounds of materials at a cost of $2.65 per pound.

2. Used 18,800 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be ignored.)

3. Worked 4,100 direct labor-hours at a cost of $6.50 per hour.

4. Incurred variable manufacturing overhead cost totaling $7,560 for the month. A total of 2,800 machine-hours was recorded.

It is the company’s policy to close all variances to cost of goods sold on a monthly basis.

Required:

1. Compute the following variances for June:

a. Materials price and quantity variances.

b. Labor rate and efficiency variances.

c. Variable overhead rate and efficiency variances.

2. Summarize the variances that you computed in (1) above by showing the net overall favorable or unfavorable variance for the month.

Miller Toy Company manufactures a plastic swimming pool at its Westwood Plant. The plant has been experiencing problems as shown by its June contribution format income statement below: Flexible Budget Actual Sales (5,000 pools) $ 235,000 $ 235,000 Variable expenses: Variable cost of goods sold* 71,350 86,370 Variable selling expenses 13,000 13,000 Total variable expenses 84,350 99,370 Contribution margin 150,650 135,630 Fixed expenses: Manufacturing overhead 62,000 62,000 Selling and administrative 77,000 77,000 Total fixed expenses 139,000 139,000 Net operating income (loss) $ 11,650 $ (3,370 ) *Contains direct materials, direct labor, and variable manufacturing overhead. Janet Dunn, who has just been appointed general manager of the Westwood Plant, has been given instructions to “get things under control.” Upon reviewing the plant’s income statement, Ms. Dunn has concluded that the major problem lies in the variable cost of goods sold. She has been provided with the following standard cost per swimming pool:  Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 3.8 pounds $ 2.20 per pound $ 8.36 Direct labor 0.7 hours $ 6.80 per hour 4.76 Variable manufacturing overhead 0.5 hours* $ 2.30 per hour 1.15 Total standard cost per unit $ 14.27 *Based on machine-hours. During June the plant produced 5,000 pools and incurred the following costs: Purchased 24,000 pounds of materials at a cost of $2.65 per pound. Used 18,800 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be ignored.) Worked 4,100 direct labor-hours at a cost of $6.50 per hour. Incurred variable manufacturing overhead cost totaling $7,560 for the month. A total of 2,800 machine-hours was recorded. It is the company’s policy to close all variances to cost of goods sold on a monthly basis. Required: 1. Compute the following variances for June: a. Materials price and quantity variances. b. Labor rate and efficiency variances. c. Variable overhead rate and efficiency variances. 2. Summarize the variances that you computed in (1) above by showing the net overall favorable or unfavorable variance for the month.

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Question: Consider the following two quotes: 1. In Australia, the story has been quite different. Investmen...

Consider the following two quotes:

1. In Australia, the story has been quite different. Investment spending here has been at a historically high level over much of the past decade. This has been primarily due to the strength of investment in the resources sector, which reached its highest share of activity in more than a century. So, unlike in other countries, there has been a significant addition to the capital stock in Australia over the past decade. We are seeing the fruits of that investment in the strong growth in resource exports.

2. The Australian of Bureau of Statistics (ABS) reported that the strong trend growth in employment has continued. Monthly trend full-time employment increased for the 14th straight month in November 2017. Full-time employment grew by a further 15,000 persons in November, while part-time employment increased by 7,000 persons, underpinning a total increase in employment of 22,000 persons. "Full-time employment has now increased by around 308,000 persons since November 2016, and makes up the majority of the 371,000 net increase in employment over the period," the Chief Economist for the ABS, Bruce Hockman, said. Over the past year, trend employment increased by 3.1 per cent, which is above the average year-on-year growth over the past 20 years (1.9 per cent). The trend monthly hours worked increased by 3.8 million hours (0.2 per cent), with the annual figure also reflecting strong growth (3.4 per cent). The labour force participation rate increased to 65.4 per cent, the highest it has been since October 2011. The female labour force participation also increased, to a further historical high of 60.1 per cent.

Using the Keynesian 45-degree diagram, explain the short-run macroeconomic implications of the increase in investment spending in Australia and how it impacted on the unemployment rate. Please address the following in your answer:

1. Starting from an initial equilibrium point what is the effect of investment on output and unemployment

2. Provide a detailed explanation of the transition process involved in moving from an initial equilibrium to a new equilibrium

Out of all of Freud’s stages which one did you find most interesting. In your answer you must first describe the stage and also include what could happen if you get fixated at this stage.

Preparation of a Schedule of Cost of Goods Manufactured and Cost of Goods Sold

The following cost and inventory data for the year just completed are taken from the accounting records of Eccles Company:

Costs incurred:

Advertising expense ...........................$100,000

Direct labour cost ..................................$80,000

Purchases of raw materials ................$137,000

Rent, factory building ............................$80,000

Indirect labour .......................................$56,300

Sales commissions................................$35,000

Utilities, factory ........................................$9,000

Maintenance, factory equipment ...........$24,000

Supplies, factory ........................................ $700

Depreciation, office equipment.................$8,000

Depreciation, factory equipment ............$40,000

                                                            Beginning                  End

                                                            of Year                       of Year

Inventories:

Raw materials ......................          $10,000                      $8,000

Work in process .....................        $20,000                      $5,000

Finished goods .....................          $25,000                      $70,000

Required:

1. Prepare a schedule of cost of goods manufactured.

2. Prepare the cost of goods sold section of Eccles Company's income statement for the year.