Please show and answer all the parts of this question. This is Testing Hypotheses About Proportions in Statistics

Suppose that in manufacturing a very sensitive electronic component, a company and its customers have tolerated a 2% defective rate. Recently, however, several customers have been complaining that there seem to be more defectives than in the past. Given that the company has made recent modifications to its manufacturing process, it is wondering if in fact the defective rate has increased from 2%. For quality assurance purposes, you decide to randomly select 1,000 of these electronic components before they are shipped to customers. Of the 1,000 components, you find 25 that are defective. Assume that the company produces a very large number of these components on any given day.

1. Set up an appropriate hypothesis to test whether or not the defect rate has increased.
2. Before proceeding to test your hypothesis, check that all assumptions and conditions are satisfied for such a test.
3. Conduct the test using a .05 level of significance (alpha) and state your decision about whether or not you believe that the defect rate has increased.
4. What would be the minimum number of defectives in a random sample of 1,000 would you need to find in order to statistically decide that the defect rate exceeds .02 (again, assuming a .05 level of significance).            

Question)

28 September 2007

Yesterday at Broadmeadows Magistrates’ Court a steel processing company pleaded guilty to causing an environmental hazard following an incident where chromic acid spilled into a stormwater drain in 2005. The Broadmeadows Magistrates’ Court heard approximately 3,000 litres of acid spilled from Onesteel’s plant at Cliffords Road in Somerton between 29 October and 1 November in 2005. OneSteel voluntarily shut down its plant to clean up the acid spillage before resuming operations a week later.

The Court heard the discharge resulted from an overflow of acid from the purification cell system at the site, when the power and air supply was turned off for a long weekend. Chromic acid is used to plate steel. Magistrate Spillane found the company guilty, and without conviction ordered it pay $75,000 to Merri Creek Management Committee Inc.

EPA West Metropolitan Region Manager Scott Maloney said the potential impact of the acid could have harmed aquatic life in local waterways. “The community expects businesses to protect our local waterways as an essential part of their operations,” Mr Maloney said. “The acid spilled into a stormwater drain which then contaminated a Melbourne Water retarding basin.”

“Onesteel has since improved their practices and modified equipment to prevent a recurrence of this incident,” Mr Maloney said. Onesteel was ordered by the Court to publicise the court findings and penalty to its shareholders and the wider community. Magistrate Spillane also ordered Onesteel to pay EPA legal costs in the amount of $10,000.

Based on the article above, describe what sorts of costs could be categorised as the costs of:

• prevention
• internal failure

For each category, identify at least two types of costs that could potentially apply in the situation of OneSteel, and explain why the cost should be categorised in that particular category. Provide your answer in the following manner in the answer box below:

Prevention cost 1:

Reason:

Prevention cost 2:

Reason:

Internal Failure cost 1:

Reason:

Internal Failure cost 2:

Reason:

Fender Construction Company receives a contract to construct a building over a period of 3 years for a price of $700,000. The contract represents a single performance obligation that will be satisfied over time. Information relating to the performance of the contract is summarized as follows:

Required:

PAGE 2017

GENERAL JOURNAL

PAGE 2018

GENERAL JOURNAL

PAGE 2019

GENERAL JOURNAL

PAGE 2017

GENERAL JOURNAL

PAGE 2018

GENERAL JOURNAL

PAGE 2019

GENERAL JOURNAL

Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 5%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $105 to purchase these supplies.

For years, Worley believed that the 5% markup covered its selling and administrative expenses and provided a reasonable profit. However, in the face of declining profits, Worley decided to implement an activity-based costing system to help improve its understanding of customer profitability. The company broke its selling and administrative expenses into five activities as shown:

Worley gathered the data below for two of the many hospitals that it serves—University and Memorial (each hospital purchased medical supplies that had cost Worley $36,000 to buy from manufacturers):

Required:

1. Compute the total revenue that Worley would receive from University and Memorial.

2. Compute the activity rate for each activity cost pool.

3. Compute the total activity costs that would be assigned to University and Memorial.

4. Compute Worley’s customer margin for University and Memorial.

2. Sushi House has budgeted sales revenue as follows:

Past experience indicates that 70% of the credit sales will be collected in the month of sale and the remaining 30% will be collected in the following month. Purchases of inventory are all on credit and 60% is paid in the month of purchase and 40% in the month following purchase.

Budgeted inventory purchases are:

Other cash disbursements budgeted: Selling and administration expenses of $14,000 each month, Dividends of $30,000 will be paid in July, and purchase of a computer in August for $3,000 cash. The company wishes to maintain a minimum cash balance of $20,000 at the end each month. The company borrows money from the bank at 9% interest if necessary to maintain the minimum cash balance and must be paid each month whether there is a loan repayment for not. Borrowed money is repaid in months when there is an excess cash balance. The beginning cash balance on July 1 was $25,000. All amounts borrowed during a month are borrowed on the first day. The loan balance as of July 1 is $26,000.

Instructions:

Prepare a cash budget for the month of July. Prepare separate schedules for expected collections from customers and expected payments for purchases as inventory.

PLEASE SHOW CALCULATIONS!!!

Entries and Schedules for Unfinished Jobs and Completed Jobs

Hildreth Company uses a job order cost system. The following data summarize the operations related to production for April, the first month of operations:

Materials purchased on account, $2,700

Materials requisitioned and factory labor used:

Job No.MaterialsFactory Labor

101$2,660 $1,870

1023,250 2520

1032,150 1,230

1047,290 4,640

1054,630 3,530

1063,380 2,240

For general factory use900 2,770

Factory overhead costs incurred on account, $5,080.

Depreciation of machinery and equipment, $1,330.

The factory overhead rate is $70 per machine hour. Machine hours used:

Job No.Machine Hours

101 17

102 39

103 33

104 82

105 27

106 32

Total 230

Jobs completed: 101, 102, 103, and 105.

Jobs were shipped and customers were billed as follows: Job 101, $8,390; Job 102, $12,110; Job 105, $16,500.

Required:

1. Journalize the entries to record the summarized operations. If an amount box does not require an entry, leave it blank.

EntriesDescriptionDebitCredit

a.Materials

Accounts Payable

b.Work in Process

Factory Overhead

Materials

Wages Payable

c.Factory Overhead

Accounts Payable

d.Factory Overhead

Accumulated Depreciation-Machinery and Equipment

e.Work in Process

Factory Overhead

f.Finished Goods

Work in Process

g. SaleAccounts Receivable

Sales

g. CostCost of Goods Sold

Finished Goods

2. Post the appropriate entries to T accounts for Work in Process and Finished Goods, using the identifying letters as transaction codes. Insert memo account balances as of the end of the month.

Work in Process

(b) (f)

(e)   

Bal.  

Finished Goods

(f) (g)

Bal.  

3. Prepare a schedule of unfinished jobs to support the balance in the work in process account.

Hildreth Company
Schedule of Unfinished Jobs

JobDirect MaterialsDirect LaborFactory OverheadTotal

No. 104 $$$$

No. 106     

Balance of Work in Process, April 30$

4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.

Hildreth Company
Schedule of Completed Jobs

JobDirect MaterialsDirect LaborFactory OverheadTotal

Finished Goods, April 30 (Job 103) $$$$

Entries and Schedules for Unfinished Jobs and Completed Jobs

Hildreth Company uses a job order cost system. The following data summarize the operations related to production for April, the first month of operations:

Materials purchased on account, $2,700

Materials requisitioned and factory labor used:

Job No.MaterialsFactory Labor

101$2,660 $1,870

1023,250 2520

1032,150 1,230

1047,290 4,640

1054,630 3,530

1063,380 2,240

For general factory use900 2,770

Factory overhead costs incurred on account, $5,080.

Depreciation of machinery and equipment, $1,330.

The factory overhead rate is $70 per machine hour. Machine hours used:

Job No.Machine Hours

101 17

102 39

103 33

104 82

105 27

106 32

Total 230

Jobs completed: 101, 102, 103, and 105.

Jobs were shipped and customers were billed as follows: Job 101, $8,390; Job 102, $12,110; Job 105, $16,500.

Required:

1. Journalize the entries to record the summarized operations. If an amount box does not require an entry, leave it blank.

EntriesDescriptionDebitCredit

a.Materials

Accounts Payable

b.Work in Process

Factory Overhead

Materials

Wages Payable

c.Factory Overhead

Accounts Payable

d.Factory Overhead

Accumulated Depreciation-Machinery and Equipment

e.Work in Process

Factory Overhead

f.Finished Goods

Work in Process

g. SaleAccounts Receivable

Sales

g. CostCost of Goods Sold

Finished Goods

2. Post the appropriate entries to T accounts for Work in Process and Finished Goods, using the identifying letters as transaction codes. Insert memo account balances as of the end of the month.

Work in Process

(b) (f)

(e)   

Bal.  

Finished Goods

(f) (g)

Bal.  

3. Prepare a schedule of unfinished jobs to support the balance in the work in process account.

Hildreth Company
Schedule of Unfinished Jobs

JobDirect MaterialsDirect LaborFactory OverheadTotal

No. 104 $$$$

No. 106     

Balance of Work in Process, April 30$

4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.

Hildreth Company
Schedule of Completed Jobs

JobDirect MaterialsDirect LaborFactory OverheadTotal

Finished Goods, April 30 (Job 103) $$$$

Parker Products manufactures a variety of household products. The company is considering introducing a new detergent. The company's CFO has collected the following information about the proposed product. (Note: You may or may not need to use all of this information, use only the information that is relevant.)

Estimate the project net cash flows. Make sure to put the cash flows in order: CF0 in blank 1, CF1 in Blank 2, CF2 in Blank 3, etc. Round it to a whole dollar, and do not include the $ sign.
In box 6 (last one), compute the project's NPV. Round it to a whole dollar, and do not include the $ sign.