What are the main arguments made by opponents of government “stimulus” spending? How does Wolfson address each of these points? How is this question especially relevant in spring 2020?

Discuss how issues related to the spread of the corona virus is affecting the following variables within your country.

a.         Unemployment

b.        Consumer demand

c.         Government spending

Map071 Shop specializes in producing and selling pouch bags. Currently, there is only one type of pouch bag being produced and sold by the shop, namely Baby On. The newly designed pouch bag is carefully produced by the business owner, Ms. Meisa. The materials are specially purchased from the best supplier in town and the processes are followed under strict quality control. The selling price for Baby On is RM42 per unit.

The following information is gathered for the purpose of preparing relevant budgets for the third quarter of 2020.   

(i)  The budgeted sales quantity for the quarter are shown below:

(ii) The pencil case will be using one type of direct material, which is the heavyweight strecthy lycra fabric. Each unit of Baby On will require 0.4 meter of lycra fabric. The cost of the fabric is estimated to be RM10 per meter.

(iii)  Every unit of Baby On will need 4 hours of direct labour hour and the rate for the direct labour is set to be at RM9 per hour.

(iv)  It is estimated that budgeted stock of finished goods are 70 units of Baby On at the beginning of July 2020. Additionally, the company also wishes to maintain monthly closing inventories of the pouch bags at 10 units lower than those monthly opening inventories.

(v)  In term of direct materials, the shop plans to keep opening inventories in July 2020 amounting to 20 meter of lycra fabric. At the end of every month, the company intends to maintain 3 meter less of lycra fabric as compared to the opening inventories.

Required:

Prepare the following budgets for the month of July, August and September 2020.

(a)      Sales budget.

(b)      Production budget.

(c)     Raw materials usage and raw material purchased.

(d)     Direct labour budget.

(pls show calculation methhod)

1. Cash point Ltd prepares quarterly budget as part of the budgetary control system. During the last quarter ending 31^st March 2020 the following information is accumulated concerning operations for the next quarter ending 30^th June 2020.

1. Sales which are all on credit will amount to Kshs 400,000 in April 2020 the same level as in February and March 2020, increasing at 10% per month for the next six months and thereafter at 5%
2. Sales credit terms are strictly 30 days after-sales. Past experience shows that this policy is effective in 75% of cases. Of the remainder, 20% will pay in subsequent month and 5% never pay up until after 180 days.
3. Inventories are maintained at equivalent of 15 days sales. On 31^st March 2020 the inventory level is estimated at Kshs125,000.
4. Goods are bought and paid for within 30 days. During March 2020, merchandise purchases amounted to Kshs 250,000
5. The unit selling price is Kshs 100 with a profit margin of 40% on sales.
6. The cash balance on 31^st March 2020 is Kshs 87,800.
7. Projected payment for expenses and other items are as follows

8. Other payments are to be made as follows:

• Half yearly rent at the rate of Kshs 8,000 per month will be paid in April and the next instalment in October 2020.
• Income tax amounting to Kshs 20,000 will be paid in June 2020 being installment tax for 2020.
• Some computer equipment will be acquired in April 2020 but paid for in May 2020 at a price of Ksh 90,000

Required

A cash budget for the three months April, May, and June 2020

Walton Sporting Goods Corporation makes two types of racquets, tennis and badminton. The company uses the same facility to make both products even though the processes are quite different. The company has recently converted its cost accounting system to activity-based costing. The following are the cost data that Jane Price, the cost accountant, prepared for the third quarter of 2018 (during which Walton made 68,500 tennis racquets and 29,800 badminton racquets).

   
Inspectors are paid according to the number of actual hours worked, which is determined by the number of racquets inspected. Engineers who set up equipment for both products are paid monthly salaries. TV commercial fees are paid at the beginning of the quarter. Facility-level cost includes depreciation of all production equipment.

   
Required

Compute the cost per unit for each product.

If management wants to price badminton racquets 30 percent above cost, what price should the company set?

Requirement A

Walton Sporting Goods Corporation makes two types of racquets, tennis and badminton. The company uses the same facility to make both products even though the processes are quite different. The company has recently converted its cost accounting system to activity-based costing. The following are the cost data that Jane Price, the cost accountant, prepared for the third quarter of 2018 (during which Walton made 68,500 tennis racquets and 29,800 badminton racquets). **** Please provide step by step instructions***

   
Inspectors are paid according to the number of actual hours worked, which is determined by the number of racquets inspected. Engineers who set up equipment for both products are paid monthly salaries. TV commercial fees are paid at the beginning of the quarter. Facility-level cost includes depreciation of all production equipment.

   
Required

A. Compute the cost per unit for each product.

B. If management wants to price badminton racquets 30 percent above cost, what price should the company set?

Requirement A

Thornton Sporting Goods Corporation makes two types of racquets, tennis and badminton. The company uses the same facility to make both products even though the processes are quite different. The company has recently converted its cost accounting system to activity-based costing. The following are the cost data that Jane Price, the cost accountant, prepared for the third quarter of 2018 (during which Thornton made 69,500 tennis racquets and 29,400 badminton racquets).

Direct Cost Tennis Racquet (TR)      Badminton Racquet (BR)
Direct materials   $   15.60   per unit      $   13.70   per unit
Direct labor 35.00   per unit         24.30   per unit

A)

B)

Question 3

Acheron Industries’ fiscal year ends on December 31st. Wages earned from Dec 1 – Dec 31, 2024 totaled $836,000. Wages of $35,000 that were earned between December 15th and December 31st will not be paid until after the first of the year.

Record the journal entry on December 31, 2024.  

Question 4

On October 1, 2024, Tasmanian Traders was paid $217,000 cash for 700 hours of service to be completed within the next 9 months. On December 31, 2024, the cargo company had fulfilled 483 of the required hours.

Record the adjusting entry on December 31, 2024.

Question 9

On January 1, 2024, Diamond Tech issued 10,000 bonds, each with a face value of $1,000, for 98.2911. The company received cash from the sale of the bonds.

Record the complete journal entry from the sale of the bonds below.

Question 10

On January 1, 2024, Fabrikam Labs issued 1,000 bonds, each with a face value of $1,000, for 102.7323. The stated interest is 3.8%, and the market rate at the time the bonds were issued was 3.2%. The bonds are due on January 1, 2029 (5 year term) with interest payments due annually every January 1st. The company received cash from the sale of the bonds.

Record the complete journal entry for the sale of the bonds below.

The Yum and Yee food truck near the business school serves customers during lunch hour by taking orders and making fresh batches of stir-fry. Customers have only one choice during the lunch hour so that Y&Y can maximize the number of customers served. Assume that each customer places just one lunch order, and all lunch orders are the same size: one unit of stir-fry. The stir-fry cooking works in this manner. First, one person cooks a batch of orders in a wok. The cooking depends upon the number of orders in the batch. The time to cook just one order is 3.4 minutes. For each additional order in the batch, it takes 0.4 minute more to cook. Thus, cooking two orders in a batch takes 3.8 minutes, cooking three orders takes 4.2 minutes, and so on. The other process is bagging and accepting payments (done by a separate person), which takes 0.7 minute per order.

a.What is the Setup time

b.If Y&Y operates with bath sizes of 7 units, what is their process capacity (in orders per minute)?

c.If Yum an Yee operates with batch sizes of 12 units, what is the utilization of the wok?

d. Calculate the batch size (in orders) that maximizes the overall flow rat (assume there is ample demand)? Do NOT round the batch size (i.e., assume for this calculation that a noninteger batch size is possible.