Jorge is working in health care sector since 25 years with Siemens, he is a loyal and committed
worker started his work with the same organization when he was 22 years old. He started thinking
about his saving plans for the future retirement. Apart from the company retirement gift of
$20,000 he is considering to savings plan by keeping the retirement age of 72 years in his mind.
• Option 1: Deposit $1,000 at the end of each quarter for the first 10 years from now-onwards and. make
no further deposits, but leave the amount accumulated at the end of 10 years for the next years till
retirement
• Option 2: Do nothing for the first 10 years. Then deposit $6,000 at the end of each year till retirement
years.
If deposits or investments earn at an interest rate of 6% compounded quarterly, design an optimal
solution that which of the following option will be suitable based on what he will be able to
accumulate. Represents the calculation in the form of cash flow table shown the total sum deposited
and at the end and start of the year.

Yuri Co. operates a chain of gift shops. The company maintains a defined contribution pension plan for its employees. The plan requires quarterly installments to be paid to the funding agent, Whims Funds, by the fifteenth of the month following the end of each quarter. Assume that the pension cost is $365,000 the quarter ended December 31

Journalize the entry to record the accrued pension liability payment to the funding agent on January 15.

Which of the following is true about MACRS depreciation?

a. Depreciation begins in the middle of the month in which real property is placed in service.

b. Mid-quarter MACRS is required for all assets if real property is placed in service in the last quarter of the year.

c. Commercial buildings are depreciated over 39 years using an accelerated method.

d. Residential rental buildings are depreciated straight-line over 20 years.

Garrett Company has the following transactions during the months of April and May:

The cost of the inventory on April 1 is $5, $4, and $2 per unit, respectively, under the FIFO, average, and LIFO cost flow assumptions.

Required:

1. Compute the inventories at the end of each month and the cost of goods sold for each month for the following alternatives:

1. FIFO periodic

   	Cost of Goods Sold	Ending Inventory
   April	$__________	$__________
   May	$__________	$__________

   1. FIFO perpetual

      	Cost of Goods Sold	Ending Inventory
      April	$__________	$__________
      May	$__________	$__________

   2. LIFO periodic

      	Cost of Goods Sold	Ending Inventory
      April	$__________	$__________
      May	$__________	$__________

2. LIFO perpetual (Round your intermediate calculations to the nearest cent.)

   	Cost of Goods Sold	Ending Inventory
   April	$__________	$__________
   May	$__________	$__________

3. Weighted average (Round unit costs to 4 decimal places and final answers to the nearest dollar.)

   	Cost of Goods Sold	Ending Inventory
   April	$__________	$__________
   May	$__________	$__________

4. Moving average (Round unit costs to 2 decimal places and final answers to nearest dollar.)

   	Cost of Goods Sold	Ending Inventory
   April	$__________	$__________
   May	$__________	$__________

2. Reconcile the difference between the LIFO periodic and the LIFO perpetual results. If an amount is zero, enter "0".

3. If Garrett uses IFRS, which of the previous alternatives would be acceptable, and why?

If Garrett Company uses IFRS, it may report its inventory under ________ . It may not use LIFO  under IFRS because it is not consistent with any presumed physical flow of inventory. Also, ________ is not allowed for tax purposes in most other countries, so there is no tax incentive for a company to use LIFO . Note that companies that use IFRS and have rising inventory costs will report a higher income because they include holding gains in income.

Alternative Inventory Methods

Garrett Company has the following transactions during the months of April and May:

The cost of the inventory on April 1 is $5, $4, and $2 per unit, respectively, under the FIFO, average, and LIFO cost flow assumptions.

Required:

1. Compute the inventories at the end of each month and the cost of goods sold for each month for the following alternatives:

1. FIFO periodic

   	Cost of Goods Sold	Ending Inventory
   April	$	$
   May	$	$

2. FIFO perpetual

   	Cost of Goods Sold	Ending Inventory
   April	$	$
   May	$	$

3. LIFO periodic

   	Cost of Goods Sold	Ending Inventory
   April	$	$
   May	$	$

4. LIFO perpetual (Round your intermediate calculations to the nearest cent.)

   	Cost of Goods Sold	Ending Inventory
   April	$	$
   May	$	$

5. Weighted average (Round unit costs to 4 decimal places and final answers to the nearest dollar.)

   	Cost of Goods Sold	Ending Inventory
   April	$	$
   May	$	$

6. Moving average (Round unit costs to 2 decimal places and final answers to nearest dollar.)

   	Cost of Goods Sold	Ending Inventory
   April	$	$
   May	$	$

2. Reconcile the difference between the LIFO periodic and the LIFO perpetual results. If an amount is zero, enter "0".

3. If Garrett uses IFRS, which of the previous alternatives would be acceptable, and why?

If Garrett Company uses IFRS, it may report its inventory under FIFO, average, or specific identification . It may not use  under IFRS because it is not consistent with any presumed physical flow of inventory. Also,   is not allowed for tax purposes in most other countries, so there is no tax incentive for a company to use  . Note that companies that use IFRS and have rising inventory costs will report a higher income because they include holding gains in income.

Alternative Inventory Methods

Garrett Company has the following transactions during the months of April and May:

The cost of the inventory on April 1 is $5, $4, and $2 per unit, respectively, under the FIFO, average, and LIFO cost flow assumptions.

Required:

1. Compute the inventories at the end of each month and the cost of goods sold for each month for the following alternatives:

1. FIFO periodic

   	Cost of Goods Sold	Ending Inventory
   April	$	$
   May	$	$

2. FIFO perpetual

   	Cost of Goods Sold	Ending Inventory
   April	$	$
   May	$	$

3. LIFO periodic

   	Cost of Goods Sold	Ending Inventory
   April	$	$
   May	$	$

4. LIFO perpetual (Round your intermediate calculations to the nearest cent.)

   	Cost of Goods Sold	Ending Inventory
   April	$	$
   May	$	$

5. Weighted average (Round unit costs to 4 decimal places and final answers to the nearest dollar.)

   	Cost of Goods Sold	Ending Inventory
   April	$	$
   May	$	$

6. Moving average (Round unit costs to 2 decimal places and final answers to nearest dollar.)

   	Cost of Goods Sold	Ending Inventory
   April	$	$
   May	$	$

2. Reconcile the difference between the LIFO periodic and the LIFO perpetual results. If an amount is zero, enter "0".

3. If Garrett uses IFRS, which of the previous alternatives would be acceptable, and why?

If Garrett Company uses IFRS, it may report its inventory under  . It may not use   under IFRS because it is not consistent with any presumed physical flow of inventory. Also,   is not allowed for tax purposes in most other countries, so there is no tax incentive for a company to use  . Note that companies that use IFRS and have rising inventory costs will report a higher income because they include holding gains in income.

Below is a list of 2 transactions in the economy. Is the item counted or not counted in GDP calculation? Explain your answer.

i. CIC bought a new photocopy machine for its office use.

ii. Sam receives a monthly pension from the government.

(2.5 marks, approximately 50-80 words)

Part B

Quarterly Real GDP of Country X

i. Referring to the table above, is Country X experiencing a Recessionary Phase or an Expansionary Phase between Quarter 1 and Quarter 4?

ii. Based on your answer in part (i), explain how the variables of unemployment, and business confidence change in this phase.

Production Budget

Aqua-pro Inc. produces submersible water pumps for ponds and cisterns. The unit sales for selected months of the year are as follows:

Company policy requires that ending inventories for each month be 25% of next month's sales. However, at the beginning of April, due to greater sales in March than anticipated, the beginning inventory of water pumps is only 21,000.

Required:

Prepare a production budget for the second quarter of the year. Show the number of units that should be produced each month as well as for the quarter in total.

In a time-series decompostion of sales (in millions of units), the following trend has been estimated:

CMAT=12.315+0.196(T)

The seasonal indices have been found to be:

For the coming year, the time index and cycle factors are:

a. From this information, prepare a forecast for each quarter of the coming year.

b. Actual sales for the year you forecast in part (a) were 17.2, 13.2, 10.8, and 14.2 for quarters 1, 2, 3, and 4, respectively. Use these actual sales figures along with your forecasts to calculate the mean absolute percentage error for the forecast period.

A. Using the seasonally adjusted CPI-U, what was the inflation rate from December 2018 to December 2019 rounded to the nearest hundredth of a percent?

B. What was the (U-3) unemployment rate in December 2019 rounded to the nearest tenth of a percent?

C. What was real potential GDP for the 4^th quarter of 2019 rounded to the nearest billion dollars? (Do not include the word billion in your answer)

D. What was real GDP for the 4^th quarter of 2019 rounded to the nearest billion dollars?  (Do not include the word billion in your answer)

E. What was the base year used to calculate real GDP in your answers to C and D?

F.  Do your answers indicate there was an inflationary gap, a recessionary gap, or no gap in the last quarter of 2019?