Can you please check my answers and if I am wrong correct me.

Thank you!

A. In today's interconnected world, many central banks communicate regularly and frequently with the public about the state of the economy, the economic outlook, and the likely future course of monetary policy. Communication about the likely future course of monetary policy is known as "forward guidance.". If the central bank increases the reserve ratio, as the market has perfectly expected, which of the following will surely happen?

1. The short run economic output will be deviating from its potential output

2. The prevailing price level of goods and services in that country will fall

3. The level of potential output will be shifting to the left

4. None of the following will happen for sure

B. What actually helps to determine the slope of short-term aggregate supply curve?

1. The rate at which the level of technology increases

2. The rate at which the country’s capital stock is depreciating

3. How responsive is the actual short run level of output to the deviation of actual price level of the economy from its expected price level

4. How sensitive is the economy towards changes of nominal interest rate

C.  During a recession the economy experiences:

1. rising employment and income.

2. rising employment and falling income.

3. rising income and falling employment.

4. falling employment and income.

D. Most economists believe that in the short run

1. real and nominal variables are determined independently and that money cannot move real GDP away from its long-run trend.

2. real and nominal variables are determined independently but that money can temporarily move real GDP away from its long-run trend.

3. real and nominal variables are highly intertwined but that money cannot move real GDP away from its long- run trend.

4. real and nominal variables are highly intertwined and that money can temporarily move real GDP away from its long-run trend.

E. The Central Bank of Wiknam increases the money supply at the same time the Parliament of Wiknam passes a new investment tax credit. Which of these policies shift aggregate demand to the right?

1. both the money supply increase and the investment tax credit

2. the money supply increase but not the investment tax credit

3. the investment tax credit but not the money supply increase

4. neither the investment tax credit nor the money supply increase

F. The long-run aggregate supply curve would shift right if the government were to

1. reduce the minimum-wage.

2. make unemployment benefits more generous.

3. raise taxes on investment spending.

4. All of the above are correct.

G. Sticky nominal wages can result in

1. lower profits for firms when the price level is lower than expected.

2. a decrease in real wages when the price level is lower than expected.

3. a short-run aggregate-supply curve that is vertical.

4. a long-run aggregate-supply curve that is upward-sloping.

H. In which case can we be sure aggregate demand shifts left overall?

1. people want to save more for retirement and the Fed increases the money supply.

2. people want to save more for retirement and the Fed decreases the money supply.

3. people want to save less for retirement and the Fed increases the money supply.

4. people want to save less for retirement and the Fed decreases the money supply.

I. In the context of the aggregate-demand curve, the interest-rate effect refers to the idea that, when the price level increases,

1. the real value of money decreases; in turn, the real value of the dollar increases in foreign exchange markets, which decreases net exports.

2. the real value of money decreases; in turn, interest rates increase, which decreases net exports.

3. households increase their holdings of money; in turn, interest rates decrease, which reduces spending on investment goods.

4. households increase their holdings of money; in turn, interest rates increase, which reduces spending on investment goods.

J. Since the end of World War II, the U.S. has almost always had rising prices and an upward trend in real GDP. To explain this

1. it is only necessary that long-run aggregate supply shifts right over time.

2. it is only necessary that aggregate demand shifts right over time.

3. both aggregate demand and long-run aggregate supply must be shifting right and aggregate demand must be shifting farther.

4. None of the above cases would produce rising prices and growing real GDP over time.

Problem 7-23 Absorption and Variable Costing; Production Constant, Sales Fluctuate [LO7-1, LO7-2, LO7-3]

Tami 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:

Required:

1. Complete the following:

a. Compute the unit product cost under absorption costing.

b. What is the company’s absorption costing net operating income (loss) for the quarter?

c. Reconcile the variable and absorption costing net operating income (loss) figures.

3. During the second quarter of operations, the company again produced 33,350 units but sold 38,350 units. (Assume no change in total fixed costs.)

a. What is the company’s variable costing net operating income (loss) for the second quarter?

b. What is the company’s absorption costing net operating income (loss) for the second quarter?

c. Reconcile the variable costing and absorption costing net operating incomes for the second quarter.

Problem 6-23 Absorption and Variable Costing; Production Constant, Sales Fluctuate [LO6-1, LO6-2, LO6-3]

Tami 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:

Required:

1. Complete the following:

a. Compute the unit product cost under absorption costing.

b. What is the company’s absorption costing net operating income (loss) for the quarter?

c. Reconcile the variable and absorption costing net operating income (loss) figures.

3. During the second quarter of operations, the company again produced 31,900 units but sold 34,900 units. (Assume no change in total fixed costs.)

a. What is the company’s variable costing net operating income (loss) for the second quarter?

b. What is the company’s absorption costing net operating income (loss) for the second quarter?

c. Reconcile the variable costing and absorption costing net operating incomes for the second quarter.
Need some large help on any of this if I am being honest!

Problem 7-23 Absorption and Variable Costing; Production Constant, Sales Fluctuate [LO7-1, LO7-2, LO7-3]

Tami 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:

Required:

1. Complete the following:

a. Compute the unit product cost under absorption costing.

b. What is the company’s absorption costing net operating income (loss) for the quarter?

c. Reconcile the variable and absorption costing net operating income (loss) figures.

3. During the second quarter of operations, the company again produced 33,350 units but sold 38,350 units. (Assume no change in total fixed costs.)

a. What is the company’s variable costing net operating income (loss) for the second quarter?

b. What is the company’s absorption costing net operating income (loss) for the second quarter?

c. Reconcile the variable costing and absorption costing net operating incomes for the second quarter.

Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparing the master budget for the first quarter:

1. As of December 31 (the end of the prior quarter), the company’s general ledger showed the following account balances:

ABC Company manufactures and sells a single product. The following information is available concerning the operations for 1999.

a. The company's single product sells for $60 per unit. Budgeted sales in units for the next four quarters are:

1999    Quarter 1        3,000 Budgeted sales in units

1999    Quarter 2        3,500 Budgeted sales in units               

1999    Quarter 3        4,000 Budgeted sales in units

1999    Quarter 4        4,500 Budgeted sales in units

2000    Quarter 1        5,000 Budgeted sales in units

b. Sales are collected in the following pattern: 80% in the quarter in which the sale is made, 19% in the following quarter. On January 1, 1999, the company's balance sheet showed $60,000 in account receivables, all of which will be collected in the first quarter of the year 1999. Bad debts are projected at 1% of quarterly sales. There is a -0- balance in the AFDA account.

c. The company requires an ending inventory of finished units on hand at the end of each quarter equal to 20% of the budgeted sales for the next quarter. This requirement was met on December 31, 19x8. (The company had 600 units on hand to start the new-year).

d. Two pounds (2lbs) of raw materials are required to complete one unit of product. The company requires an ending inventory of raw materials on hand at the end of each quarter equal to 10% of the production needs of the following quarter. This requirement was met on December 31, 19x8. (The company had 620 lbs of raw materials on hand to start the new-year). Quarter 1 of the next year (year 2000) is estimated at 10,200 lbs needed for production.

e. The raw material costs $4.00 per pound. Purchases of raw material are paid for in the following pattern: 50% paid in the quarter in which the purchase was made, and the remaining 50% is paid in the following quarter. On January 1, 1999, the company's balance sheet showed $10,600 in accounts payable for raw material purchases. All of which will be paid for in the first quarter of the year 1999.

f. Manufacturing overhead and selling & administrative expenses are paid in the quarter incurred. The only exception is depreciation.

g. The manufacturing overhead budget distinguishes between variable and fixed overhead costs. Variable costs fluctuate with production volume on the basis of the following rates per direct labor hour: indirect materials $1.00, indirect labor $1.40, utilities $0.40, and maintenance $0.20. Fixed costs per quarter are: Supervisory Salaries $20,000, Depreciation $3,800, Property Taxes & Insurance $9,000 and Maintenance $5,700. Overhead is applied to production on the basis of direct labor hours. The annual rate is $8 per hour. (Hint: Total Manufacturing Overhead for 1999 $246,400 / Direct Labor hours 30,800 hours = $8/direct labor hour).

h. Selling & administrative expense budget distinguishes between variable and fixed overhead costs. Variable costs are Sales Commissions of $3.00 and Freight-Out $1.00. Variable expenses per quarter are based on the unit sales projected in the sales budget. Fixed costs, per quarter, are: Advertising $5,000, Sales Salaries $15,000, Office Salaries $7,500 Depreciation $1,000 and Property Taxes & Insurance $1,500.

i. January 1, 1999, cash balance is expected to be $38,000.

j. Marketable securities are expected to be sold for $2,000 cash in the first quarter.

k. 2 hours of direct labor are required to produce each unit of finished goods and the anticipated hourly wage rate is $10. Direct Labor is paid 100% in the quarter incurred.

l. Management plans to purchase new factory equipment in the second quarter for $50,000.

m. Management plans to purchase new office computers in the third quarter for $12,000.

n. Assume depreciation on new purchases is accounted for quarterly budgeted depreciation amounts.

o. Management plans to sell old equipment at the end of the fourth quarter for $3,000. Purchase price is $20,000, on January 1, 1996. Depreciation is calculated using the straight-line method, useful life estimated at five years, with no residual value.

p. The company makes equal quarterly payments of its estimated annual income taxes in the amount of $3,000 per quarter.

q. Loans are repaid in the first subsequent quarter in which there is sufficient cash (incuring 8% interest if funds are borrowed.)

r. A minimum cash balance of $20,000 is maintained per quarter.

s. Budgeted balance sheet information as of December 31, 1998 were: Building & Equipment $ 182,000, Common Stock $ 225,000, Accumulated Depreciation$ 28,800 and Retained Earnings of $ 46,480.

Requirements:

You must follow the posted lecture on Budgets that I authored.

Using Excel and the information above, prepare the following budgets and schedules for the year 1999, showing both quarterly and the year total figures:
1. Sales budget & schedule of cash collections from customers
2. Production budget
3. Direct materials budget & schedule of expected payments for direct materials
4. Direct labor budget
5. Manufacturing overhead budget
6. Selling & administrative expense budget
7. Cash budget
In addition, complete the following:

A. Finished goods inventory budget (Schedule)
B. Budgeted income statement (Budgeted financial statement)
C. Budgeted balance sheet (Budgeted financial statement)

ABC Company manufactures and sells a single product. The following information is available concerning the operations for 1999. a. The company's single product sells for $60 per unit. Budgeted sales in units for the next four quarters are: 1999 Quarter 1 3,000 Budgeted sales in units 1999 Quarter 2 3,500 Budgeted sales in units 1999 Quarter 3 4,000 Budgeted sales in units 1999 Quarter 4 4,500 Budgeted sales in units 2000 Quarter 1 5,000 Budgeted sales in units b. Sales are collected in the following pattern: 80% in the quarter in which the sale is made, 19% in the following quarter. On January 1, 1999, the company's balance sheet showed $60,000 in account receivables, all of which will be collected in the first quarter of the year 1999. Bad debts are projected at 1% of quarterly sales. There is a -0- balance in the AFDA account. c. The company requires an ending inventory of finished units on hand at the end of each quarter equal to 20% of the budgeted sales for the next quarter. This requirement was met on December 31, 19x8. (The company had 600 units on hand to start the new-year). d. Two pounds (2lbs) of raw materials are required to complete one unit of product. The company requires an ending inventory of raw materials on hand at the end of each quarter equal to 10% of the production needs of the following quarter. This requirement was met on December 31, 19x8. (The company had 620 lbs of raw materials on hand to start the new-year). Quarter 1 of the next year (year 2000) is estimated at 10,200 lbs needed for production. e. The raw material costs $4.00 per pound. Purchases of raw material are paid for in the following pattern: 50% paid in the quarter in which the purchase was made, and the remaining 50% is paid in the following quarter. On January 1, 1999, the company's balance sheet showed $10,600 in accounts payable for raw material purchases. All of which will be paid for in the first quarter of the year 1999. f. Manufacturing overhead and selling & administrative expenses are paid in the quarter incurred. The only exception is depreciation. g. The manufacturing overhead budget distinguishes between variable and fixed overhead costs. Variable costs fluctuate with production volume on the basis of the following rates per direct labor hour: indirect materials $1.00, indirect labor $1.40, utilities $0.40, and maintenance $0.20. Fixed costs per quarter are: Supervisory Salaries $20,000, Depreciation $3,800, Property Taxes & Insurance $9,000 and Maintenance $5,700. Overhead is applied to production on the basis of direct labor hours. The annual rate is $8 per hour. (Hint: Total Manufacturing Overhead for 1999 $246,400 / Direct Labor hours 30,800 hours = $8/direct labor hour). h. Selling & administrative expense budget distinguishes between variable and fixed overhead costs. Variable costs are Sales Commissions of $3.00 and Freight-Out $1.00. Variable expenses per quarter are based on the unit sales projected in the sales budget. Fixed costs, per quarter, are: Advertising $5,000, Sales Salaries $15,000, Office Salaries $7,500 Depreciation $1,000 and Property Taxes & Insurance $1,500. i. January 1, 1999, cash balance is expected to be $38,000. j. Marketable securities are expected to be sold for $2,000 cash in the first quarter. k. 2 hours of direct labor are required to produce each unit of finished goods and the anticipated hourly wage rate is $10. Direct Labor is paid 100% in the quarter incurred. l. Management plans to purchase new factory equipment in the second quarter for $50,000. m. Management plans to purchase new office computers in the third quarter for $12,000. n. Assume depreciation on new purchases is accounted for quarterly budgeted depreciation amounts. o. Management plans to sell old equipment at the end of the fourth quarter for $3,000. Purchase price is $20,000, on January 1, 1996. Depreciation is calculated using the straight-line method, useful life estimated at five years, with no residual value. p. The company makes equal quarterly payments of its estimated annual income taxes in the amount of $3,000 per quarter. q. Loans are repaid in the first subsequent quarter in which there is sufficient cash (incurring 8% interest if funds are borrowed.) r. A minimum cash balance of $20,000 is maintained per quarter. s. Budgeted balance sheet information as of December 31, 1998 were: Building & Equipment $ 182,000, Common Stock $ 225,000, Accumulated Depreciation$ 28,800 and Retained Earnings of $ 46,480. prepare the following budgets and schedules for the year 1999, showing both quarterly and the year total figures Manufacturing overhead budget Selling & administrative expense budget Cash budget Finished goods inventory budget (Schedule) Budgeted income statement (Budgeted financial statement) Budgeted balance sheet (Budgeted financial statement)

ABC Company manufactures and sells a single product. The following information is available concerning the operations for 1999.

a. The company's single product sells for $60 per unit. Budgeted sales in units for the next four quarters are:

1999   Quarter 1       3,000 Budgeted sales in units

1999   Quarter 2       3,500 Budgeted sales in units

1999   Quarter 3       4,000 Budgeted sales in units

1999   Quarter 4       4,500 Budgeted sales in units

2000   Quarter 1       5,000 Budgeted sales in units

b. Sales are collected in the following pattern: 80% in the quarter in which the sale is made, 19% in the following quarter. On January 1, 1999, the company's balance sheet showed $60,000 in account receivables, all of which will be collected in the first quarter of the year 1999. Bad debts are projected at 1% of quarterly sales. There is a -0- balance in the AFDA account.

c. The company requires an ending inventory of finished units on hand at the end of each quarter equal to 20% of the budgeted sales for the next quarter. This requirement was met on December 31, 19x8.  (The company had 600 units on hand to start the new-year).

d. Two pounds (2lbs) of raw materials are required to complete one unit of product. The company requires an ending inventory of raw materials on hand at the end of each quarter equal to 10% of the production needs of the following quarter. This requirement was met on December 31, 19x8.  (The company had 620 lbs of raw materials on hand to start the new-year). Quarter 1 of the next year (year 2000) is estimated at 10,200 lbs needed for production.

e. The raw material costs $4.00 per pound. Purchases of raw material are paid for in the following pattern: 50% paid in the quarter in which the purchase was made, and the remaining 50% is paid in the following quarter. On January 1, 1999, the company's balance sheet showed $10,600 in accounts payable for raw material purchases.  All of which will be paid for in the first quarter of the year 1999.

f. Manufacturing overhead and selling & administrative expenses are paid in the quarter incurred.  The only exception is depreciation.

g. The manufacturing overhead budget distinguishes between variable and fixed overhead costs. Variable costs fluctuate with production volume on the basis of the following rates per direct labor hour: indirect materials $1.00, indirect labor $1.40, utilities $0.40, and maintenance $0.20. Fixed costs per quarter are: Supervisory Salaries $20,000, Depreciation $3,800, Property Taxes & Insurance $9,000 and Maintenance $5,700. Overhead is applied to production on the basis of direct labor hours. The annual rate is $8 per hour. (Hint: Total Manufacturing Overhead for 1999 $246,400 / Direct Labor hours 30,800 hours = $8/direct labor hour).

h. Selling & administrative expense budget distinguishes between variable and fixed overhead costs.  Variable costs are Sales Commissions of $3.00 and Freight-Out $1.00. Variable expenses per quarter are based on the unit sales projected in the sales budget. Fixed costs, per quarter, are:  Advertising $5,000, Sales Salaries $15,000, Office Salaries $7,500 Depreciation $1,000 and Property Taxes & Insurance $1,500.

i. January 1, 1999, cash balance is expected to be $38,000.

j. Marketable securities are expected to be sold for $2,000 cash in the first quarter.

k. 2 hours of direct labor are required to produce each unit of finished goods and the anticipated hourly wage rate is $10. Direct Labor is paid 100% in the quarter incurred.

l. Management plans to purchase new factory equipment in the second quarter for $50,000.

m. Management plans to purchase new office computers in the third quarter for $12,000.

n. Assume depreciation on new purchases is accounted for quarterly budgeted depreciation amounts.

o. Management plans to sell old equipment at the end of the fourth quarter for $3,000. Purchase price is $20,000, on January 1, 1996. Depreciation is calculated using the straight-line method, useful life estimated at five years, with no residual value.

p. The company makes equal quarterly payments of its estimated annual income taxes in the amount of $3,000 per quarter.

q. Loans are repaid in the first subsequent quarter in which there is sufficient cash (incurring 8% interest if funds are borrowed.)

r. A minimum cash balance of $20,000 is maintained per quarter.

s. Budgeted balance sheet information as of December 31, 1998 were: Building & Equipment $ 182,000, Common Stock $ 225,000, Accumulated Depreciation$ 28,800 and Retained Earnings of $ 46,480.

Requirements:

You must follow the posted lecture on Budgets that I authored.

UsingExceland the information above, prepare the following budgets and schedules for the year 1999, showing both quarterly and the year total figures:
1. Sales budget & schedule of cash collections from customers
2. Production budget
3. Direct materials budget & schedule of expected payments for direct materials
4. Direct labor budget
5. Manufacturing overhead budget
6. Selling & administrative expense budget
7. Cash budget
In addition, complete the following:

A. Finished goods inventory budget (Schedule)
B. Budgeted income statement (Budgeted financial statement)
C. Budgeted balance sheet (Budgeted financial statement)

There are a few possible explanations given for the “farm problem” (falling farm prices and income). Pasour and Rucker discuss some possible sources in their book. Provide a brief description of two (2) possible explanations. Which explanation do you find most persuasive? Why?