Questions
In 2018, the Westgate Construction Company entered into a contract to construct a road for Santa...

In 2018, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2020. Information related to the contract is as follows:


2018
2019
2020
Cost incurred during the year
2,400,000
3,600,000
2,200,000
Estimated costs to complete as of year-end
5,600,000
2,000,000
0
Billings during the year
2,000,000
4,000,000
4,000,000
Cash collections during the year
1,800,000
3,600,000
4,600,000

Westgate Construction uses the completed contract method of accounting for long-term construction contracts.


Required:
1. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years.

2-a.In the journal below, complete the necessary journal entries for the year 2018 (credit "Various accounts" for construction costs incurred).

2-b.In the journal below, complete the necessary journal entries for the year 2019 (credit "Various accounts" for construction costs incurred).

2-c. In the journal below, complete the necessary journal entries for the year 2020 (credit "Various accounts" for construction costs incurred).

3. Complete the information required below to prepare a partial balance sheet for 2018 and 2019 showing any items related to the contract.

4. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information.



2018
2019
2020
Cost incurred during the year
2,400,000
3,800,000
3,200,000
Estimated costs to complete as of year-end
5,600,000
3,100,000
0





5. Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years assuming the following costs incurred and costs to complete information. (same table as above)













































In: Accounting

Flight Café is a company that prepares in-flight meals for airlines in its kitchen located next...

Flight Café is a company that prepares in-flight meals for airlines in its kitchen located next to the local airport. The company’s planning budget for July appears below:

Flight Café
Planning Budget
For the Month Ended July 31
Budgeted meals (q) 26,000
Revenue ($4.30q) $ 111,800
Expenses:
Raw materials ($2.00q) 52,000
Wages and salaries ($6,300 + $0.20q) 11,500
Utilities ($2,000 + $0.05q) 3,300
Facility rent ($3,800) 3,800
Insurance ($2,400) 2,400
Miscellaneous ($700 + $0.10q) 3,300
Total expense 76,300
Net operating income $ 35,500

In July, 27,000 meals were actually served. The company’s flexible budget for this level of activity appears below:

Flight Café
Flexible Budget
For the Month Ended July 31
Budgeted meals (q) 27,000
Revenue ($4.30q) $ 116,100
Expenses:
Raw materials ($2.00q) 54,000
Wages and salaries ($6,300 + $0.20q) 11,700
Utilities ($2,000 + $0.05q) 3,350
Facility rent ($3,800) 3,800
Insurance ($2,400) 2,400
Miscellaneous ($700 + $0.10q) 3,400
Total expense 78,650
Net operating income $ 37,450

1. Compute the company’s activity variances for July. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Flight Café
Activity Variances
For the Month Ended July 31
Revenue??? F
Expenses:???
Raw materials???? U
Wages and salaries???? U
Utilities??? U
Facility rent?? None
Insurance????? None
Miscellaneous????? U
Total expense???? U
Net operating income???? F

In: Accounting

Outside of main declare two constant variables: an integer for number of days in the week...

Outside of main declare two constant variables: an integer for number of days in the week and a double for the revenue per pizza (which is $8.50). Create the function prototypes.

Create main

Inside main:

  1. Declare an integer array that can hold the number of pizzas purchased each day for one week.
  2. Declare two additional variables one to hold the total sum of pizzas sold in a week and one to hold the average pizzas sold per day
  3. Using an appropriate loop, ask the user to enter in the number of pizza for each day
    1. The program must test the entry value.
    2. If the number entered is negative, the program must display an error message and allow for the reentry of the value for that day. The program will continue to ask for a valid response until a valid response is entered.
    3. If the number is valid (greater than or equal to zero), the program will then prompt for the next value until the loop ends.
    4. Extra Credit will be given if the validation test is done via a function call.
  4. Send the array to a function that displays a title for the report as well as the number of pizzas sold for each day.
  5. Send the array to a function that calculates the sum total of pizzas sold for the week; the function returns the sum total back to main().
  6. Send the array to a function that calculates the average number of pizzas sold for the week; the function returns the average back to main().
  7. Display the following:
    1. The total number of pizzas sold for the week
    2. The average number of pizzas sold per day
    3. The total revenue from the pizza sold for the week
    4. The average revenue per day
  8. Display a thank you/goodbye message.
  9. Comment your code.

Submit the .cpp file and a screen shot in Canvas

Screen Shots:

please write the code for c++

In: Computer Science

Recall that Benford's Law claims that numbers chosen from very large data files tend to have...

Recall that Benford's Law claims that numbers chosen from very large data files tend to have "1" as the first nonzero digit disproportionately often. In fact, research has shown that if you randomly draw a number from a very large data file, the probability of getting a number with "1" as the leading digit is about 0.301. Now suppose you are an auditor for a very large corporation. The revenue report involves millions of numbers in a large computer file. Let us say you took a random sample of n = 224 numerical entries from the file and r = 49 of the entries had a first nonzero digit of 1. Let p represent the population proportion of all numbers in the corporate file that have a first nonzero digit of 1.

(i) Test the claim that p is less than 0.301. Use ? = 0.10.

(a) What is the level of significance? State the null and alternate hypotheses.

H0: p = 0.301; H1: p > 0.301

H0: p = 0.301; H1: p < 0.301

H0: p < 0.301; H1: p = 0.301

H0: p = 0.301; H1: p ? 0.301

(b) What sampling distribution will you use?

The Student's t, since np > 5 and nq > 5.

The standard normal, since np < 5 and nq < 5.

The Student's t, since np < 5 and nq < 5.

The standard normal, since np > 5 and nq > 5.

What is the value of the sample test statistic? (Round your answer to two decimal places.)

(c) Find the P-value of the test statistic. (Round your answer to four decimal places.)

(i) Sketch the sampling distribution and show the area corresponding to the P-value.

(d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis? Are the data statistically significant at level ??

At the ? = 0.10 level, we reject the null hypothesis and conclude the data are statistically significant.

At the ? = 0.10 level, we reject the null hypothesis and conclude the data are not statistically significant.

At the ? = 0.10 level, we fail to reject the null hypothesis and conclude the data are statistically significant.

At the ? = 0.10 level, we fail to reject the null hypothesis and conclude the data are not statistically significant.

(e) Interpret your conclusion in the context of the application.

There is sufficient evidence at the 0.10 level to conclude that the true proportion of numbers with a leading 1 in the revenue file is less than 0.301.

There is insufficient evidence at the 0.10 level to conclude that the true proportion of numbers with a leading 1 in the revenue file is less than 0.301.

(ii) If p is in fact less than 0.301, would it make you suspect that there are not enough numbers in the data file with leading 1's? Could this indicate that the books have been "cooked" by "pumping up" or inflating the numbers? Comment from the viewpoint of a stockholder. Comment from the perspective of the Federal Bureau of Investigation as it looks for money laundering in the form of false profits.

No. The revenue data file does not seem to include more numbers with higher first nonzero digits than Benford's law predicts.

No. The revenue data file seems to include more numbers with higher first nonzero digits than Benford's law predicts.

Yes. The revenue data file does not seem to include more numbers with higher first nonzero digits than Benford's law predicts.

Yes. The revenue data file seems to include more numbers with higher first nonzero digits than Benford's law predicts.

(iii) Comment on the following statement: If we reject the null hypothesis at level of significance ?, we have not proved Ho to be false. We can say that the probability is ? that we made a mistake in rejecting Ho. Based on the outcome of the test, would you recommend further investigation before accusing the company of fraud?

We have not proved H0 to be false. Because our data lead us to reject the null hypothesis, more investigation is merited.

We have proved H0 to be false. Because our data lead us to reject the null hypothesis, more investigation is not merited.

We have not proved H0 to be false. Because our data lead us to accept the null hypothesis, more investigation is not merited.

We have not proved H0 to be false. Because our data lead us to reject the null hypothesis, more investigation is not merited

In: Statistics and Probability

Recall that Benford's Law claims that numbers chosen from very large data files tend to have...

Recall that Benford's Law claims that numbers chosen from very large data files tend to have "1" as the first nonzero digit disproportionately often. In fact, research has shown that if you randomly draw a number from a very large data file, the probability of getting a number with "1" as the leading digit is about 0.301. Now suppose you are an auditor for a very large corporation. The revenue report involves millions of numbers in a large computer file. Let us say you took a random sample of n = 215 numerical entries from the file and r = 47 of the entries had a first nonzero digit of 1. Let p represent the population proportion of all numbers in the corporate file that have a first nonzero digit of 1. (i) Test the claim that p is less than 0.301. Use ? = 0.10. (a) What is the level of significance? State the null and alternate hypotheses. H0: p < 0.301; H1: p = 0.301 H0: p = 0.301; H1: p < 0.301 H0: p = 0.301; H1: p ? 0.301 H0: p = 0.301; H1: p > 0.301 (b) What sampling distribution will you use? The standard normal, since np > 5 and nq > 5. The Student's t, since np < 5 and nq < 5. The standard normal, since np < 5 and nq < 5. The Student's t, since np > 5 and nq > 5. What is the value of the sample test statistic? (Round your answer to two decimal places.) (c) Find the P-value of the test statistic. (Round your answer to four decimal places.) Sketch the sampling distribution and show the area corresponding to the P-value. (d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis? Are the data statistically significant at level ?? At the ? = 0.10 level, we reject the null hypothesis and conclude the data are statistically significant. At the ? = 0.10 level, we reject the null hypothesis and conclude the data are not statistically significant. At the ? = 0.10 level, we fail to reject the null hypothesis and conclude the data are statistically significant. At the ? = 0.10 level, we fail to reject the null hypothesis and conclude the data are not statistically significant. (e) Interpret your conclusion in the context of the application. There is sufficient evidence at the 0.10 level to conclude that the true proportion of numbers with a leading 1 in the revenue file is less than 0.301. There is insufficient evidence at the 0.10 level to conclude that the true proportion of numbers with a leading 1 in the revenue file is less than 0.301. (ii) If p is in fact less than 0.301, would it make you suspect that there are not enough numbers in the data file with leading 1's? Could this indicate that the books have been "cooked" by "pumping up" or inflating the numbers? Comment from the viewpoint of a stockholder. Comment from the perspective of the Federal Bureau of Investigation as it looks for money laundering in the form of false profits. No. The revenue data file does not seem to include more numbers with higher first nonzero digits than Benford's law predicts. Yes. The revenue data file seems to include more numbers with higher first nonzero digits than Benford's law predicts. No. The revenue data file seems to include more numbers with higher first nonzero digits than Benford's law predicts. Yes. The revenue data file does not seem to include more numbers with higher first nonzero digits than Benford's law predicts. (iii) Comment on the following statement: If we reject the null hypothesis at level of significance ?, we have not proved Ho to be false. We can say that the probability is ? that we made a mistake in rejecting Ho. Based on the outcome of the test, would you recommend further investigation before accusing the company of fraud? We have not proved H0 to be false. Because our data lead us to accept the null hypothesis, more investigation is not merited. We have not proved H0 to be false. Because our data lead us to reject the null hypothesis, more investigation is merited. We have proved H0 to be false. Because our data lead us to reject the null hypothesis, more investigation is not merited. We have not proved H0 to be false. Because our data lead us to reject the null hypothesis, more investigation is not merited.

In: Statistics and Probability

Recall that Benford's Law claims that numbers chosen from very large data files tend to have...

Recall that Benford's Law claims that numbers chosen from very large data files tend to have "1" as the first nonzero digit disproportionately often. In fact, research has shown that if you randomly draw a number from a very large data file, the probability of getting a number with "1" as the leading digit is about 0.301. Now suppose you are an auditor for a very large corporation. The revenue report involves millions of numbers in a large computer file. Let us say you took a random sample of n = 216 numerical entries from the file and r = 49 of the entries had a first nonzero digit of 1. Let p represent the population proportion of all numbers in the corporate file that have a first nonzero digit of 1.

(i) Test the claim that p is less than 0.301. Use α = 0.10.

(a) What is the level of significance?

State the null and alternate hypotheses.

H0: p = 0.301; H1: p > 0.301H0: p = 0.301; H1: p < 0.301    H0: p < 0.301; H1: p = 0.301H0: p = 0.301; H1: p ≠ 0.301

(b) What sampling distribution will you use?

The standard normal, since np > 5 and nq > 5.The Student's t, since np < 5 and nq < 5.    The standard normal, since np < 5 and nq < 5.The Student's t, since np > 5 and nq > 5.

What is the value of the sample test statistic? (Round your answer to two decimal places.)

(c) Find the P-value of the test statistic. (Round your answer to four decimal places.)

Sketch the sampling distribution and show the area corresponding to the P-value.

(d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis? Are the data statistically significant at level α?

At the α = 0.10 level, we reject the null hypothesis and conclude the data are statistically significant.At the α = 0.10 level, we reject the null hypothesis and conclude the data are not statistically significant.    At the α = 0.10 level, we fail to reject the null hypothesis and conclude the data are statistically significant.At the α = 0.10 level, we fail to reject the null hypothesis and conclude the data are not statistically significant.

(e) Interpret your conclusion in the context of the application.

There is sufficient evidence at the 0.10 level to conclude that the true proportion of numbers with a leading 1 in the revenue file is less than 0.301.There is insufficient evidence at the 0.10 level to conclude that the true proportion of numbers with a leading 1 in the revenue file is less than 0.301.    

(ii) If p is in fact less than 0.301, would it make you suspect that there are not enough numbers in the data file with leading 1's? Could this indicate that the books have been "cooked" by "pumping up" or inflating the numbers? Comment from the viewpoint of a stockholder. Comment from the perspective of the Federal Bureau of Investigation as it looks for money laundering in the form of false profits.

No. The revenue data file does not seem to include more numbers with higher first nonzero digits than Benford's law predicts.Yes. The revenue data file seems to include more numbers with higher first nonzero digits than Benford's law predicts.    Yes. The revenue data file does not seem to include more numbers with higher first nonzero digits than Benford's law predicts.No. The revenue data file seems to include more numbers with higher first nonzero digits than Benford's law predicts.

(iii) Comment on the following statement: If we reject the null hypothesis at level of significance α, we have not proved Ho to be false. We can say that the probability is α that we made a mistake in rejecting Ho. Based on the outcome of the test, would you recommend further investigation before accusing the company of fraud?

We have not proved H0 to be false. Because our data lead us to reject the null hypothesis, more investigation is merited.We have not proved H0 to be false. Because our data lead us to accept the null hypothesis, more investigation is not merited.    We have not proved H0 to be false. Because our data lead us to reject the null hypothesis, more investigation is not merited.We have proved H0 to be false. Because our data lead us to reject the null hypothesis, more investigation is not merited.


In: Statistics and Probability

Recall that Benford's Law claims that numbers chosen from very large data files tend to have...

Recall that Benford's Law claims that numbers chosen from very large data files tend to have "1" as the first nonzero digit disproportionately often. In fact, research has shown that if you randomly draw a number from a very large data file, the probability of getting a number with "1" as the leading digit is about 0.301. Now suppose you are an auditor for a very large corporation. The revenue report involves millions of numbers in a large computer file. Let us say you took a random sample of n = 215 numerical entries from the file and r = 47 of the entries had a first nonzero digit of 1. Let p represent the population proportion of all numbers in the corporate file that have a first nonzero digit of 1.

(i) Test the claim that p is less than 0.301. Use α = 0.05.

(a) What is the level of significance?


State the null and alternate hypotheses.

H0: p < 0.301; H1: p = 0.301H0: p = 0.301; H1: p > 0.301     H0: p = 0.301; H1: p < 0.301H0: p = 0.301; H1: p ≠ 0.301


(b) What sampling distribution will you use?

The Student's t, since np > 5 and nq > 5.The Student's t, since np < 5 and nq < 5.     The standard normal, since np > 5 and nq > 5.The standard normal, since np < 5 and nq < 5.


What is the value of the sample test statistic? (Round your answer to two decimal places.)


(c) Find the P-value of the test statistic. (Round your answer to four decimal places.)


Sketch the sampling distribution and show the area corresponding to the P-value.


(d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis? Are the data statistically significant at level α?

At the α = 0.05 level, we reject the null hypothesis and conclude the data are statistically significant.At the α = 0.05 level, we reject the null hypothesis and conclude the data are not statistically significant.     At the α = 0.05 level, we fail to reject the null hypothesis and conclude the data are statistically significant.At the α = 0.05 level, we fail to reject the null hypothesis and conclude the data are not statistically significant.


(e) Interpret your conclusion in the context of the application.

There is sufficient evidence at the 0.05 level to conclude that the true proportion of numbers with a leading 1 in the revenue file is less than 0.301.There is insufficient evidence at the 0.05 level to conclude that the true proportion of numbers with a leading 1 in the revenue file is less than 0.301.     


(ii) If p is in fact less than 0.301, would it make you suspect that there are not enough numbers in the data file with leading 1's? Could this indicate that the books have been "cooked" by "pumping up" or inflating the numbers? Comment from the viewpoint of a stockholder. Comment from the perspective of the Federal Bureau of Investigation as it looks for money laundering in the form of false profits.

No. The revenue data file seems to include more numbers with higher first nonzero digits than Benford's law predicts.Yes. The revenue data file does not seem to include more numbers with higher first nonzero digits than Benford's law predicts.     Yes. The revenue data file seems to include more numbers with higher first nonzero digits than Benford's law predicts.No. The revenue data file does not seem to include more numbers with higher first nonzero digits than Benford's law predicts.


(iii) Comment on the following statement: If we reject the null hypothesis at level of significance α, we have not proved Ho to be false. We can say that the probability is α that we made a mistake in rejecting Ho. Based on the outcome of the test, would you recommend further investigation before accusing the company of fraud?

We have not proved H0 to be false. Because our data lead us to reject the null hypothesis, more investigation is merited.We have not proved H0 to be false. Because our data lead us to reject the null hypothesis, more investigation is not merited.     We have not proved H0 to be false. Because our data lead us to accept the null hypothesis, more investigation is not merited.We have proved H0 to be false. Because our data lead us to reject the null hypothesis, more investigation is not merited.

In: Statistics and Probability

Recall that Benford's Law claims that numbers chosen from very large data files tend to have...

Recall that Benford's Law claims that numbers chosen from very large data files tend to have "1" as the first nonzero digit disproportionately often. In fact, research has shown that if you randomly draw a number from a very large data file, the probability of getting a number with "1" as the leading digit is about 0.301. Now suppose you are an auditor for a very large corporation. The revenue report involves millions of numbers in a large computer file. Let us say you took a random sample of n = 219 numerical entries from the file and r = 47 of the entries had a first nonzero digit of 1. Let p represent the population proportion of all numbers in the corporate file that have a first nonzero digit of 1.

(i) Test the claim that p is less than 0.301. Use α = 0.05.

(a) What is the level of significance?


State the null and alternate hypotheses.

H0: p = 0.301; H1: p > 0.301H0: p = 0.301; H1: p ≠ 0.301     H0: p = 0.301; H1: p < 0.301H0: p < 0.301; H1: p = 0.301


(b) What sampling distribution will you use?

The standard normal, since np > 5 and nq > 5.The standard normal, since np < 5 and nq < 5.     The Student's t, since np > 5 and nq > 5.The Student's t, since np < 5 and nq < 5.


What is the value of the sample test statistic? (Round your answer to two decimal places.)


(c) Find the P-value of the test statistic. (Round your answer to four decimal places.)


Sketch the sampling distribution and show the area corresponding to the P-value.


(d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis? Are the data statistically significant at level α?

At the α = 0.05 level, we reject the null hypothesis and conclude the data are statistically significant.At the α = 0.05 level, we reject the null hypothesis and conclude the data are not statistically significant.     At the α = 0.05 level, we fail to reject the null hypothesis and conclude the data are statistically significant.At the α = 0.05 level, we fail to reject the null hypothesis and conclude the data are not statistically significant.


(e) Interpret your conclusion in the context of the application.

There is sufficient evidence at the 0.05 level to conclude that the true proportion of numbers with a leading 1 in the revenue file is less than 0.301.There is insufficient evidence at the 0.05 level to conclude that the true proportion of numbers with a leading 1 in the revenue file is less than 0.301.     


(ii) If p is in fact less than 0.301, would it make you suspect that there are not enough numbers in the data file with leading 1's? Could this indicate that the books have been "cooked" by "pumping up" or inflating the numbers? Comment from the viewpoint of a stockholder. Comment from the perspective of the Federal Bureau of Investigation as it looks for money laundering in the form of false profits.

No. The revenue data file does not seem to include more numbers with higher first nonzero digits than Benford's law predicts.Yes. The revenue data file does not seem to include more numbers with higher first nonzero digits than Benford's law predicts.     No. The revenue data file seems to include more numbers with higher first nonzero digits than Benford's law predicts.Yes. The revenue data file seems to include more numbers with higher first nonzero digits than Benford's law predicts.


(iii) Comment on the following statement: If we reject the null hypothesis at level of significance α, we have not proved Ho to be false. We can say that the probability is α that we made a mistake in rejecting Ho. Based on the outcome of the test, would you recommend further investigation before accusing the company of fraud?

We have not proved H0 to be false. Because our data lead us to accept the null hypothesis, more investigation is not merited.We have not proved H0 to be false. Because our data lead us to reject the null hypothesis, more investigation is merited.     We have not proved H0 to be false. Because our data lead us to reject the null hypothesis, more investigation is not merited.We have proved H0 to be false. Because our data lead us to reject the null hypothesis, more investigation is not merited.

In: Statistics and Probability

Income statement preparation   On December​ 31, 20192019​, Cathy​ Chen, a​ self-employed certified public accountant​ (CPA), completed...

Income statement preparation   On December​ 31,

20192019​,

Cathy​ Chen, a​ self-employed certified public accountant​ (CPA), completed her first full year in business. During the​ year, she charged her clients

$ 366 comma 000$366,000

for her accounting services. She had two​ employees, a bookkeeper and a clerical assistant. In addition to her monthly salary of

$ 8 comma 050$8,050​,

Ms. Chen paid annual salaries of

$ 48 comma 500$48,500

and

$ 35 comma 800$35,800

to the bookkeeper and the clerical​ assistant, respectively. Employment taxes and benefit costs for Ms. Chen and her employees totaled

$ 34 comma 300$34,300

for the year. Expenses for office​ supplies, including​ postage, totaled  

$ 10 comma 900$10,900

for the year. In​ addition, Ms. Chen spent

$ 17 comma 000$17,000

during the year on​ tax-deductible travel and entertainment associated with client visits and new business development. Lease payments for the office space rented​ (a tax-deductible​ expense) were

$ 2 comma 730$2,730

per month. Depreciation expense on the office furniture and fixtures was

$ 15 comma 200$15,200

for the year. During the​ year, Ms. Chen paid interest of

$ 14 comma 600$14,600

on the

$ 121 comma 000$121,000

borrowed to start the business. She paid an average tax rate of

30 %30%

during

20192019.

a. Prepare an income statement for Cathy​ Chen, CPA, for the year ended December​ 31,

20192019.

b. Evaluate her

20192019

financial performance.

a. Prepare an income statement for Cathy​ Chen, CPA, for the year ended December​ 31,

20192019.

Complete the fragment of the income statement for Cathy Chen​ below:  ​(Select the correct account from the​ drop-down menu and round to the nearest​ dollar.)

Cathy Chen, CPA

Income Statement

for the Year Ended December 31, 2019

Sales revenue

$

366000

Complete the fragment of the income statement for Cathy Chen​ below:  ​(Select the correct account from the​ drop-down menu and round to the nearest​ dollar.)

Less: Operating expenses

Interest expense

$

Total operating expense

$

Operating profits (EBIT)

$

Complete the fragment of the income statement for Cathy Chen​ below:  ​(Select the correct account from the​ drop-down menu and round to the nearest​ dollar.)

Net profits before taxes

$

Complete the fragment of the income statement for Cathy Chen​ below:  ​(Select the correct account from the​ drop-down menu and round to the nearest​ dollar.)

Net profits after taxes

$

b. Evaluate her

20192019015

financial performance.  ​(Select the best answer​ below.)

A.In her first year of​ business, Cathy Chen covered all her operating expenses and earned a net profit of

$ 60 comma 340$60,340

on revenues of

$ 366 comma 000$366,000.

B.In her first year of​ business, Cathy Chen covered all her operating expenses and earned a net profit of

$ 42 comma 238$42,238

on revenues of

$ 366 comma 000$366,000.

C.In her first year of​ business, Cathy Chen did not cover all her operating​ expenses, which resulted in a net loss of

$ 60 comma 340$60,340

on revenues of

$ 366 comma 000$366,000.

D.In her first year of​ business, Cathy Chen did not cover all her operating​ expenses, which resulted in a net loss of

$ 42 comma 238$42,238

on revenues of

$ 366 comma 000$366,000.

In: Accounting

1. You have been asked to assist Brandon Manufacturing Inc. prepare for an upcoming end-of-year meeting,...

1. You have been asked to assist Brandon Manufacturing Inc. prepare for an upcoming end-of-year meeting, since its accountant quit without notice.  The following information for the year ended December 31, 2020 was prepared by the President’s secretary, who, trying to be helpful, has alphabetized the list:

                        Administrative staff salaries                                                 52,000

Advertising and promotion                                                   31,000

Bad debt expense                                                                    4,000

Commission expense - salespersons                                 88,000

Depreciation - factory buildings                                           16,850

Depreciation - sales office                                                      7,700

Finished goods inventory - start of year                               8,500

Finished goods inventory - end of year                                6,100

Indirect materials used                                                            4,800

Insurance expense – factory buildings                                 3,400

Insurance expense – sales vehicles                                     6,300

Property taxes - factory                                                        21,900

Property taxes - sales office                                                   4,100

Purchases - raw materials                                                    87,000

Raw materials inventory - start of year                                5,000

Raw materials inventory - end of year                                  3,500

            Rent - production equipment                                               26,070

Repairs & maintenance - factory equipment                       2,800

Repairs & maintenance - sales office equipment               3,060

Salaries - factory supervisor                                                92,000

Travel and entertainment expenses                                 112,000

Utilities – factory                                                                     14,600

Utilities – sales office                                                               9,850

Wages and benefits - factory workers                              169,000

Work-in-process inventory - start of year                           14,200

Work-in-process inventory - end of year                            18,900

Required:     

12        a)  Prepare EITHER a combined schedule of cost of goods manufactured and cost of goods sold for the year ended December 31, 2020  OR separate schedules for cost of goods manufactured and cost of goods sold, in good form.  Use actual manufacturing overhead costs incurred.

4         b) What would the cost of goods manufactured be if manufacturing overhead was applied using a predetermined overhead rate of $11.75 per machine hour, and total machine hours were 16,000 during the year? Prepare the journal entry to dispose of the over- or under-applied overhead, assuming it is all allocated to Cost of Goods Sold and two separate T accounts are used for Manufacturing overhead.

  1        c)  What would the ending work-in-process inventory be if cost of goods manufactured was $180,000 and all other information remained the same?

Sales revenue

$540,000

Variable expenses

360,000

Contribution margin

180,000

Fixed costs

100,000

Operating income

$  80,000

2.  Bradjoli Inc. produces a single product.  The results of operations for a typical month are as follows:

The company produced and sold 120,000 kgs of product during the month, and there were no beginning or ending inventories.  Bradjoli pays income tax at a rate of 25%.

            Required:

            a) At the typical sales volume, calculate:

3                    i) the breakeven point is units sold and in sales dollars.

2                    ii) the margin of safety as a percentage.

3                    iii) the operating leverage. Using the operating leverage, determine the operating profit that Bradjoli would report if sales were to increase 40%.

4        b) Compute the target sales in units and sales dollars if Bradjoli wants to earn an after-tax profit of $162,000.  

1                    i) At this sales volume, what is the operating leverage?

1                    ii) At this sales volume, determine the operating profit that Bradjoli would report if sales were to increase 40%.

4        c)  Using the typical month’s operating results as the starting point, calculate the breakeven point if Bradjoli plans to invest in automation with a monthly fixed cost of $25,000 and expects this will reduce variable expenses by $0.50 per unit.  Do you recommend the company undertake this investment?  Why or why not?

In: Accounting