Value- and Non-Value-Added Cost Reporting

Cicleta Manufacturing has four activities: receiving materials, assembly, expediting products, and storing goods. Receiving and assembly are necessary activities; expediting and storing goods are unnecessary. The following data pertain to the four activities for the year ending 2014 (actual price per unit of the activity driver is assumed to be equal to the standard price):

Required:

2. Explain why expediting products and storing goods are non-value-added activities.

- Select your answer -Both are necessary activitiesBoth are unnecessary activitiesBoth result in a change of state for the productCorrect 1 of Item 2

Mercia Chocolates produces gourmet chocolate products with no preservatives. Any production must be sold within a few days, so producing inventory is not an option. Mercia's single plant has the capacity to make 95,500 packages of chocolate annually. Currently, Mercia sells to only two customers: Vern's Chocolates( A specialty candy store chain) and Mega Stores ( a chain of department stores). Vern's orders 57,100 packages and Mega Stores orders 20,500 packages annually. Variable manufacturing costs are $21 per package, and annual fixed manufacturing costs are $570,000.

The Gourmet chocolate business has two seasons, holidays and non-holidays. The holiday season lasts exactly four months and the non-holiday season lasts eight months. Vern's orders the same amount each month, so Vern's orders 18,300 packages during the holidays and 38,800 packages in the non-holiday season. Mega Stores only carried Mercia's chocolates during the holidays.

Required:

a) Calculate the product cost per package for each season(holiday and non holiday) with excess capacity costs assigned to season in which it is incurred.

b) Calculate the product cost per package for each season(non holiday and holiday) with excess capacity costs assigned to the season requiring it.

Required information

PA4-4 Identifying and Preparing Adjusting Journal Entries [LO 4-1, LO 4-2, LO 4-3, LO 4-6]

[The following information applies to the questions displayed below.]

Val’s Hair Emporium operates a hair salon. Its unadjusted trial balance as of December 31, 2018, follows, along with information about selected accounts.

PA4-4 Part 1

Required:

1. Prepare the (preliminary) unadjusted net income statement for the year ended December 31, 2018.

I have

Revunues

Service Revunue $59,500

Total Revnues 59,500

Expenses

Salaries and wages Expense 28,100

Utilities Expense 11,200

Rent Expense 10,000

Supplies Expense 3800

Income Tax Expense 0

Total Expenses 53,100

Net Income 6400

Now part 2

Name the five pairs of balance sheet and income statement accounts that require adjustment and indicate the amount of adjustment for each pair.

1 Supplies - Supplies Expense Amount $2500

2 Prepaid Rent - Rent Expense $2000

3 Accounts Payable Utilities Expense $350

4 Salaries and wages payable- Salaries and wages expense $100

5 Income tax payable - income tax expense $0

part 3

PA4-4 Part 3

3. Prepare the adjusting journal entries that are required at December 31, 2018. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.

Not sure on this part or how to get income tax payable, any help would be greatly appreciated

PA4-4 Part 4

1. 4-a. Prepare the adjusted net income that the company should report for the year ended December 31, 2018.
2. 4-b. By what dollar amount did the adjustments in requirement (3) cause net income to increase or decrease?

and this is the end of the question I need to order each one in steps 1,2,3,4 I appreciate the help a lot it will help me learn how to solve this thanks!

The following information relates to Husk Corn Co. for the year ended December 31, 2018:

The company tells you that Income from Continuing Operations PRE Taxes is $ 300,000. However, this amount was computed before the company considered these items: (i.e. none of the items listed below are factored into the $300,000)

• Restructuring Costs incurred in 2018 were $25,000
• When recording depreciation expense for the previous year (2017), they mistakenly recorded depreciation twice for the same asset. The amount of the error was $15,000 after taxes. The error had no effect on the amount of depreciation expense recorded in 2018.
• As a result of some stronger credit policies put in place in 2018, Husk Corn Co. decided to reduce the percentage used in the calculation of bad debts expense from 2% of net sales to 1.5% of net sales. These new percentages resulted in bad debt expense of $8,000 for the year-ended 2018. (Again, this change in estimate information is not included as part of the $300,000 above. i.e. there is no bad debt expense included as part of the $300,000 amount.)
• On October 1, 2018, the company sold Division B, a major component of the business which had been unprofitable for the past several years. Husk Corn Co. reported a loss of $20,000 on Division B during the first 9 months of the year while it was still in operations. They were able to sell the assets of the division before the end of 2018. However, the sale resulted in a loss of $40,000.
• Husk Corn Co. incurred a loss from a write-down of obsolete inventory of $10,000 during 2018.
• Gains on foreign currency exchange during 2018 were $20,000, which affects comprehensive income only.  

1. What is the correct amount that should appear on the Husk Corn Co. income statement as "Income from Continuing Operations before Taxes"?

2. Prepare the 2018 partial income statement for Husk Corn Co. beginning with "Income from Continuing Operations before Taxes".  Assume that your answer in part 1 above was $250,000 for purposes of this question. Assume an income tax rate of 25%. Do not complete the comprehensive income portion.

3. Assuming there are $50,000 shares of common stock outstanding at year-end, what is Husk Corn Co's net income per share (EPS)?

Show all work please.

QUESTION ONE

You have been provided with the end of year, unadjusted trial balance for Tina’s Managerial Advice business and the balance day adjustments to be implemented. Tina commenced business on 1^st July 2018.

Required:

1.         Provide the General Journal entries for the:                               

i)         Balance day adjustments on the 31^st October 2018;

ii)        Reversing entries where required on 1^st November 2018.

(9 Marks)

            2.         Provide an Income Statement for the period ending 31^st October 2018.                                                                                                                                

3.         Provide a fully classified Balance Sheet showing.                     

4.         Explain the role of the Prepaid Contents Insurance and the Unearned Advice Commissions Revenue accounts in this business.        (2 Marks)

TINA’S MANAGERIAL ADVICE SERVICE

UNADJUSTED TRIAL BALANCE AS AT 31^st OCTOBER 2018

ACCOUNT                                                                           DEBIT $     CREDIT $

Cash at bank                                                                         25,440

Accounts Receivable                                                           91,000

Allowance for Doubtful Debts                                                                    2,000

Office Supplies Inventory                                                        300

Prepaid Contents Insurance                                               4,800

Prepaid Rent of offices                                                        12,000

Photocopier (Purchased 1^st July 2017)                              60,000

Accounts Payable                                                                                        32,000

Unearned Advice Services Revenue                                                          3,340

VAT Collected (20%)                                                                                   22,068

VAT Paid (20%)                                                                   2,287

Loan from WES Bank Ltd (due 30^th June 2025)                                      80,000

Capital – Tina Tobin                                                                                   36,219

Drawings – Tina Tobin                                                       10,000

Advice Service Revenue                                                                            134,000

Electricity – Office                                                                  3,100

Discount Expense                                                                      300           

Advice staff bonus                                                                  6,800           

Advice staff wages                                                              78,200

Office Staff wages                                                                15,400

TOTAL                                                                                $309,627          $309,627

QUESTION ONE CONTINUED

Additional Information

• The 12-month Content Insurance policy was paid on 1^st July 2018.

• An Accounts Receivable of $1,000 is uncollectible and is to be written off. The policy is to have the Allowance for Doubtful Debts equal to 1% of net Advice Service Revenue.

• The Photocopier is to be depreciated using a unit method; it is anticipated that the photocopier will be kept till it has produced 2,000,000 copies and then be traded in for $10,000. As at 30^th October 2018 it had produced 80,000 copies.

• $1,340 of the Unearned Advice Services Revenue had been earned, but not recorded on 29^th October 2018.

• Advice Staff Wages amounting to $2,600 had been incurred but not yet paid as at 31^st October 2018.

• Office Supplies on hand as at 31^st October were valued at $170.

• $4000 of the Prepaid Rent of Showroom figure relates to the month of November 2018.

Protrade Corporation acquired 70 percent of the outstanding voting stock of Seacraft Company on January 1, 2017, for $441,000 in cash and other consideration. At the acquisition date, Protrade assessed Seacraft's identifiable assets and liabilities at a collective net fair value of $775,000 and the fair value of the 30 percent noncontrolling interest was $189,000. No excess fair value over book value amortization accompanied the acquisition.

The following selected account balances are from the individual financial records of these two companies as of December 31, 2018:

Each of the following problems is an independent situation:

Assume that Protrade sells Seacraft inventory at a markup equal to 60 percent of cost. Intra-entity transfers were $115,000 in 2017 and $135,000 in 2018. Of this inventory, Seacraft retained and then sold $53,000 of the 2017 transfers in 2018 and held $67,000 of the 2018 transfers until 2019.
Determine balances for the following items that would appear on consolidated financial statements for 2018:

Assume that Seacraft sells inventory to Protrade at a markup equal to 60 percent of cost. Intra-entity transfers were $75,000 in 2017 and $105,000 in 2018. Of this inventory, $46,000 of the 2017 transfers were retained and then sold by Protrade in 2018, whereas $60,000 of the 2018 transfers were held until 2019.
Determine balances for the following items that would appear on consolidated financial statements for 2018:

Protrade sells Seacraft a building on January 1, 2017, for $130,000, although its book value was only $75,000 on this date. The building had a five-year remaining life and was to be depreciated using the straight-line method with no salvage value.
Determine balances for the following items that would appear on consolidated financial statements for 2018:

The following information relates to Husk Corn Co. for the year ended December 31, 2018:

The company tells you that Income from Continuing Operations PRE Taxes is $ 300,000. However, this amount was computed before the company considered these items: (i.e. none of the items listed below are factored into the $300,000)

Restructuring Costs incurred in 2018 were $25,000

When recording depreciation expense for the previous year (2017), they mistakenly recorded depreciation twice for the same asset. The amount of the error was $15,000 after taxes. The error had no effect on the amount of depreciation expense recorded in 2018.

As a result of some stronger credit policies put in place in 2018, Husk Corn Co. decided to reduce the percentage used in the calculation of bad debts expense from 2% of net sales to 1.5% of net sales. These new percentages resulted in bad debt expense of $8,000 for the year-ended 2018. (Again, this change in estimate information is not included as part of the $300,000 above. i.e. there is no bad debt expense included as part of the $300,000 amount.)

On October 1, 2018, the company sold Division B, a major component of the business which had been unprofitable for the past several years. Husk Corn Co. reported a loss of $20,000 on Division B during the first 9 months of the year while it was still in operations. They were able to sell the assets of the division before the end of 2018. However, the sale resulted in a loss of $40,000.

Husk Corn Co. incurred a loss from a write-down of obsolete inventory of $10,000 during 2018.

Gains on foreign currency exchange during 2018 were $20,000, which affects comprehensive income only.

1. What is the correct amount that should appear on the Husk Corn Co. income statement as "Income from Continuing Operations before Taxes"?

2. Prepare the 2018 partial income statement for Husk Corn Co. beginning with "Income from Continuing Operations before Taxes" and ending with "Net Income". Assume that your answer in part 1 above was $250,000 for purposes of this question. Assume an income tax rate of 25%. Do not complete the comprehensive income portion.

3. Assuming there are $50,000 shares of common stock outstanding at year-end, what is Husk Corn Co's net income per share (EPS)?

Show all work please.

Comprehensive Problem (Tax Return Problem). David and Doris Kelley were divorced on February 3, 2018. They lived apart during 2018. The divorce decree required David to make the following payments:

a. Transfer full title to their jointly owned family home to Doris. Fair market value of the home is $180,000, basis $150,000 .

b. $1,000 per month mortgage payments on the house, above. The mortgage has 20 years remaining before being fully paid off, but the payments would end on her death.

c. $2,000 per month for 10 years’ support payments to Doris, of which $600 per month is child support.

d. Doris insisted that the children attend private schools. In 2018, David paid $1,500 in tuition for the children’s private high school. David paid his lawyer $5,000 to represent him in the divorce proceedings. David and Doris agreed that Doris would maintain a home for the children. Further, Doris agreed to allow David to claim one child as a dependency exemption. This agreement was put in writing and signed by Doris.

Besides the divorce, David has had a big year financially. He owns an apartment house and he requires each new tenant to place a $750 security deposit with him before moving into the apartment. When the tenant ultimately vacates the apartment, David will refund the deposit. In 2018, David collected $3,750 in security deposits and rental income of $15,000.

David entered a local raffle in 2018. David won first prize, which was a new automobile with a window price of $20,000. He checked with several local car dealers and was positive that if he had purchased a similar car on his own, the price would have been $18,200.

David loaned his sister Lois $5,000. Lois was repaying the loan at $100 per month plus interest of $40. Since Lois was about to depart on an extended vacation on December 2, 2018, she gave David $200 plus interest of $80 to cover the months of December and January.

David has a good job that pays an annual salary of $50,000. In 2018, business was very good and in December 2018 bonuses were announced for the employees. David earned a $4,000 bonus for 2018. Bonuses would be mailed to the employees during the first week of January 2019. David has itemized deductions of $20,000. Determine David’s 2018 taxable income.

Solve this problem using pointer variables for parameter passing, where appropriate and pointer arithmetic when working with arrays

Please use the "C" program toProduce the EXACT output shown at the end of the document.

1.Generate a graph that compares, on a month-by-month basis, the monthly rainfall for Kamloops for the first half of 2018 (i.e. Jan – June) versus the normal (30 year average) rainfall for Kamloops for the same months.

2. In main( ), create the 2 data arrays using initializations lists, and also create this array char *months[6] = { "January", "February", "March", "April", "May", "June" };   
3. Create and call ONE function to print one line of symbols.
   • call it the first time to print the line of *
   • call it a second time to print the line of !
   • no if statement is needed or allowed in this function
   • Think very carefully about the parameter list for this function

4. Call a function to print the scale and the legend as shown below.

5. Call a function to find and print the total rainfall for each data set, and also the comparison of the two totals. The function will state whether 2018 was wetter, drier, or equal to a normal 6 month rainfall and by how much.

6. Call a function to determine which month in 2018 had the highest rainfall, and print the month name (using the function described in #2), the rainfall amount and how that amount compares to the normal amount for that month.

Input will consist of 6 pairs of numbers representing the normal rainfall for the month and the 2018 rainfall amount for the same month. Use the exact data shown below when you run your program, (Note: the data and output below are for illustration purposes only. Your program must be able to work with any data that has this format)

1. 3.1 5.4       ¬ January data (normal first, then 2018)
2. 4.7 4.4      ¬ February data
3. 4.2 4.1
4. 5.0   6.0
5. 4.0   5.6
6. 6.3    4.5

Rainfall comparison for January to June 2018

       January    |***********

|!!!!!!!!!!!!!!!!!!!!!!!!!

|  

   February |***************

|!!!!!!!!!!!!!!!!!!!!!

|

   March | etc for the rest of the months

|  

June |*****************

|!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

|----1----2----3----4----5----6----7----8

LEGEND:

* - normal rainfall for a given month

! - 2018 rainfall for a given month

Total normal rainfall was xx.x mm.

Total rainfall for 2018 was yy.y mm.

2018 was a drier year than normal by z.z mm. (or print wetter or equal if that is appropriate)

The month in 2018 with the highest rainfall was …

Stark Engineering Solutions Melbourneknew it had a problem with recruitment when it began to lose track of its job applicants’ Curriculum Vitae’s (CV’s or resume). It frequently called the same candidates for an interview twice and from time to time, sought to interview people it had already employed. HR staff would spend up to two hours looking for an individual CV’s for a given job.

The company had existed for around 4 years and had grown very rapidly. It had around 2000 employees but planned to expand this to 6000 over the next three years. The business, with 4 offices in major Australian cities, intended to take on approximately some extra 200 employees each quarter.

The Human Resources recruitment team had started with 2 members and had grown to 12 people across the four offices. The bigger it grew, the greater the chaos and confusion. The recruitment database was maintained in an MS Excel spreadsheet and was not coordinated between the 4 offices. They were receiving an average of1000 CV’s per month – via email or in the form of the hard copy sent by candidates or by recruitment firms – for an average of around 60 vacancies across all 4 offices at any given time.

An internal review demonstrated that the company had to standardise its recruitment processes and reduce duplication. The cost per hire needed to be cut and the overall quality of the talent hired by the business needed to rise.

The company felt that these improvements would help speed response times and promote a positive image. They could also help to improve the efficiency of the recruitment staff. Stark Engineering believed that the adoption of an online recruitment platform would improve the shortlisting process and boost candidate confidentiality. It could, in time, ensure a greater diversity of job applicants.

Source: Adapted from Instructor Resources-Nankervis, A., Compton, R., Baird, M. & Coffey, J. 2017. Human Resource Management, Strategy and Practice. (9th Ed.) Australia: Cengage Learning

Questions:

1. Explain the current problems facing the Stark Engineering recruitment team and how the benefits of using an online recruitment system could solve these issues for both the employer and the prospective candidates applying for the jobs.

this question is related to human resource management