Wilderness Products, Inc., has designed a self-inflating sleeping pad for use by backpackers and campers. The following information is available about the new product: An investment of $1,900,000 will be necessary to carry inventories and accounts receivable and to purchase some new equipment needed in the manufacturing process. The company’s required rate of return is 26% on all investments. A standard cost card has been prepared for the sleeping pad, as shown below: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 5 yards $ 3.80 per yard $ 19.00 Direct labor 3 hours $ 9.00 per hour 27.00 Manufacturing overhead (20% variable) 3 hours $ 13.00 per hour 39.00 Total standard cost per pad $ 85.00 The only variable selling and administrative expense will be a sales commission of $9 per pad. The fixed selling and administrative expenses will be $2,761,000 per year. Because the company manufactures many products, no more than 105,000 direct labor-hours per year can be devoted to production of the new sleeping pads. Manufacturing overhead costs are allocated to products on the basis of direct labor-hours. Required: 1. Assume that the company uses the absorption approach to cost-plus pricing. a. Compute the markup percentage that the company needs on the pads to achieve a 26% return on investment (ROI) if it sells all of the pads it can produce. b. What selling price per sleeping pad will the company establish if it uses a markup percentage on absorption cost? (Round intermediate calculations and final answer to 2 decimal places.) c. Assume that the company is able to sell all of the pads that it can produce. Prepare an income statement for the first year of activity. Compute the company’s ROI based on the first year of activity. 2. After marketing the sleeping pads for several years, the company is experiencing a falloff in demand due to an economic recession. A large retail outlet will make a bulk purchase of pads if its label is sewn in and if an acceptable price can be worked out. What is the minimum acceptable price for this special order? (Round your answer to 2 decimal places.)

The so-called 90-10 ratio (the hourly wage at the 90th percentile compared to that at the 10th percentile) was roughly how much in 2007?

Multiple Choice

• 2.5

• 4.5

• 8.0

• 10.5

Answer the question on the basis of the accompanying table that shows average total costs (ATC) for a manufacturing firm whose total fixed costs are $10.

The total cost of producing 4 units of output is

Multiple Choice

• $31.

• $87.

• $124.

• $137

A purely competitive firm

Multiple Choice

• must earn a normal profit in the short run.

• cannot earn economic profit in the long run.

• may realize either economic profit or losses in the long run.

• cannot earn economic profit in the short run.

According to data compiled by the Bureau of Economic Analysis, from 1960 to 2015, government transfer payments as a percentage of U.S. output have

Multiple Choice

• decreased as a result of improvements in private pension and health insurance plans.

• increased slightly at about the same rate as population.

• tripled as a percentage of output.

• remained approximately constant.

Fixed cost is

Multiple Choice

• the cost of producing one more unit of capital, for example, machinery.

• any cost that does not change when the firm changes its output.

• average cost multiplied by the firm's output.

• usually zero in the short run.

The effect of the so-called welfare cliff is that it discourages welfare recipients from doing the following, except

Multiple Choice

• working more hours.

• finding and transitioning into higher-paying jobs.

• applying for an extension of the welfare payment.

• acquiring education and training for better jobs.

he equations for the demand and supply curves for a particular product are P = 10 − 0.4Q and P = 2 + 0.4Q, where P is price and Q is quantity expressed in units of 100. After an excise tax is imposed on the product, the supply equation is P = 3 + 0.4Q. The efficiency loss of this tax is

Multiple Choice

• $125.00.

• $62.50.

• $87.50.

• $1.00

Can someone answer the below question using SPSS

Diane's Beauty Salon is currently hiring beauticians at its new location in a popular mall. Diane wants to know what commission percentage to pay the beauticians based on experience. A survey of 12 licensed beauticians was taken with the following results. Commission Years of Commission Years of Percentage (y) Experience (x) Percentage (y) Experience (x) Commission Years of Commission Years of Percentage (y) Experience (x) Percentage (y) Experience (x) 24 2 25 4 18 1 44 12 30 5 33 8 41 10 24 3 35 8 20 1 35 7 40 10 a. Find the least squares line equation. b. Calculate sum of squares due to errors. c. Test the null hypothesis that ther is no linear relationship between years of experience and perdentage of commissions paid. Use a significance level of 95% d. Find a 90% confidence interval for the slope of the regression line.

The topic of global warming increasingly appears in the news. It has the potential to impact companies' operations through changes in governmental regulations, new reporting requirements, necessary operational changes , and so on. The Institute of Management Accountants (IMA) conducted a survey of senior finance professionals to gauge members' thoughts on global warming and its impact on their companies. The survey found that 65% of senior finance professionals believe that global warming is having a significant impact on the environment.

Suppose that you select a sample of 100 senior finance professionals.

a.) What is the probability that the sample percentage indicating global warming is having a significant impact on the environment will be between 64% and 69%

b.) The probability is 90% that the sample percentage will be contained within what symmetrical limits od the population percentage?

c.) The probability is 95% that the sample percentage will be contained within what symmetrical limits of the population percentage?

d.) Suppose you selected a sample of 400 senior finance professionals. How does this change your answers in a-c?

Boatbound

Serial entrepreneur Aaron Hall took note of the “sharing economy” that emerged during the last recession and launched Boatbound, a peer-to-peer boat rental company that brings together boat owners who are willing to rent their boats when they are not in use and people who want a fun boating experience without the cost of owning a boat. Hall realized that 12.2 million boats are registered in the United States, yet the average owner uses his or her boat just 26 days per year. Boatbound screens all potential renters, verifies the condition and the safety of each boat, carries ample insurance on each boat, and covers general liability. Boat owners select their renters from Boatbound’s pool of applicants and set daily rental fees, and Boatbound collects 35 percent of the fee. Boatbound has rented every kind of boat, from kayaks to yachts with captains. Fees range from $200 to $8,500 per day. “As a boat owner and someone in the marine industry, I’ve been waiting for something like this my whole life,” says Aabad Melwani, owner of a marina. “I just didn’t know it.”

Henrybuilt

Scott Hudson, CEO of Henrybuilt, had created a profitable niche designing and building upscale kitchens that ranged from $30,000 to $100,000. In 2006, Hudson opened a New York City showroom, which doubled in size in just 18 months. By 2008, the company had more than 200 jobs in the United States, Mexico, and Canada. When the recession hit, however, new projects came to a standstill, and customers began cancelling orders. In response, Hudson launched a subsidiary, Viola Park Corporation, that provides customers lower-cost remodeling options that use its software rather than an architect to create “custom” variations on Henrybuilt designs. The result is a process that produces a kitchen much faster and at half the cost of a Henrybuilt kitchen. Henrybuilt sales have recovered, but Viola Park accounts for 20 percent of sales and is growing twice as fast as Henrybuilt. Unequal Technologies Robert Vito started Unequal Technologies in 2008 to supply protective clothing and gear, including bullet-proof vests, to military contractors. The protective gear is made from a lightweight yet strong composite material that he developed and patented. Two years later, the equipment manager of the Philadelphia Eagles called to ask whether Unequal Technologies could create a special garment for one of its star players who had suffered a sternum injury. Vito modified the bullet-proof vest for the player and soon had other players in the National Football League asking for protective gear. Unequal technologies went on to develop Concussion Reduction Technology (CRT), peel-and-stick pads for football helmets that are made from before it reaches the skull. Independent tests show that CRT reduces the risk of head injuries from impact by 53 percent. The company now supplies equipment to 27 of the NFL’s 32 teams and has its sights set on an even larger market: amateur sports. Vito says Unequal’s technology gives the company a competitive edge that has allowed it to increase sales from $1 million to $20 million in just one year.

(Source: Scarborough and Cornwall, 2016)

1. Select one of these small businesses (Boatbound or Henrybuilt) and explain how the said business used six (6) of the 10 types of innovation to bolster its success.   

15. Marks)

Job Order Costing

The ABC Company builds residential housing. The company started operations on June 1^st, 2018. Below are transactions that occurred in the first month of operations (June 2018)

Journal Entries:

June 1) ABC Company sold common stock for $1,500,000 in cash. The company issued 15,000 shares of $100 Par stock.

June 2) ABC Company purchased $300,000 of building materials. Paying $100,000 cash and the rest on account due in 45 days. No credit terms were given.

June 3) ABC Company purchased construction equipment for $240,000 cash. The company uses the straight line method of depreciation. The equipment has a useful life of 9 years and a residual value of $24,000.

June 4) ABC Company started construction on 3 homes (Job 100, 101, 102) by requisitioning the following materials: The materials were delivered to the job sites.

June 14) The following direct labor was used and paid for during the period ($30/hour):

Predetermined overhead rate calculated May 8, 2018

(Estimated Total Overhead Costs) / (Estimated Direct Labor Hours)

($24,000) / (3000 hours) = $7 per direct labor used

June 21) Job 100 is completed and ready for sale.

The following actual costs were incurred and paid (Except for depreciation transactions listed below) during the month of June:

June 2) Insurance on houses under construction $2,000 (covers up to any number of homes.

June 3) Insurance on anticipated completed homes $500 no matter the number.

June 8) Construction supervisor salary $6,000 (Paid Monthly)

June 8) Company president salary $8,000 (Paid Monthly)

June 8) Administrative staff salaries $3,000 (Paid Monthly)

June 12) Building Permits $3,000

June 15) Purchased land for $50,000 and a building for $112,000 to use as corporate HQ

June 20) Insurance on HQ is $1,000 per month

June 23) Declared a $5,000 cash dividend to be paid on July 23, 2018.

June 24) Job 100 is sold for $250,000; Cash $150,000 & $100,000 note receivable to be received on September 19, 2018. The amount received will be $109,000 principal and interest. The note is a 360 day (One year is 360 days) 9% simple interest note. An adjusting entry must be made for interest revenue earned for the month of June.

June 30) Depreciation for June on HQ Building $2,500

June 30) Depreciation on the construction equipment was _______________

June 30) Apply (Appropriate) overhead to incomplete jobs

June 30) Account for ending balance in Overhead account

Note: All June 30 entries are Adjusting Entries

1) Show T-Accounts

Job Order Costing

The ABC Company builds residential housing. The company started operations on June 1^st, 2018. Below are transactions that occurred in the first month of operations (June 2018)

Journal Entries:

June 1) ABC Company sold common stock for $1,500,000 in cash. The company issued 15,000 shares of $100 Par stock.

June 2) ABC Company purchased $300,000 of building materials. Paying $100,000 cash and the rest on account due in 45 days. No credit terms were given.

June 3) ABC Company purchased construction equipment for $240,000 cash. The company uses the straight line method of depreciation. The equipment has a useful life of 9 years and a residual value of $24,000.

June 4) ABC Company started construction on 3 homes (Job 100, 101, 102) by requisitioning the following materials: The materials were delivered to the job sites.

June 14) The following direct labor was used and paid for during the period ($30/hour):

Predetermined overhead rate calculated May 8, 2018

(Estimated Total Overhead Costs) / (Estimated Direct Labor Hours)

($24,000) / (3000 hours) = $7 per direct labor used

June 21) Job 100 is completed and ready for sale.

The following actual costs were incurred and paid (Except for depreciation transactions listed below) during the month of June:

June 2) Insurance on houses under construction $2,000 (covers up to any number of homes.

June 3) Insurance on anticipated completed homes $500 no matter the number.

June 8) Construction supervisor salary $6,000 (Paid Monthly)

June 8) Company president salary $8,000 (Paid Monthly)

June 8) Administrative staff salaries $3,000 (Paid Monthly)

June 12) Building Permits $3,000

June 15) Purchased land for $50,000 and a building for $112,000 to use as corporate HQ

June 20) Insurance on HQ is $1,000 per month

June 23) Declared a $5,000 cash dividend to be paid on July 23, 2018.

June 24) Job 100 is sold for $250,000; Cash $150,000 & $100,000 note receivable to be received on September 19, 2018. The amount received will be $109,000 principal and interest. The note is a 360 day (One year is 360 days) 9% simple interest note. An adjusting entry must be made for interest revenue earned for the month of June.

June 30) Depreciation for June on HQ Building $2,500

June 30) Depreciation on the construction equipment was _______________

June 30) Apply (Appropriate) overhead to incomplete jobs

June 30) Account for ending balance in Overhead account

1. Prepare an Adjusted Trial Balance

Question No: 2 10 Marks
Case (a) The National Ferries Company in Oman purchased a new ferry at a cost of OMR 320,000. The facilities
available in that ferry were modern and long lasting. The useful life of the ferry was estimated for 20 years. At the
end of the 8th year the ferry’s wireless and navigation system requires replacement. The company felt that the
maintenance cost of the wireless and navigation system was very high and they decided to replace that wireless and
navigation system immediately. Except the wireless and navigation system, the ferry’s technical parts and other
facilities are sail worthy and are expected to function for the next 6 years without any problem. The National
Ferries Company inquired about the price with the producer of wireless and navigation system and they are ready to
deliver the wireless and navigation system at a price of OMR 85,000.
Case (b) A land was acquired by a manufacturing corporation and the purpose of this acquisition was to construct a
factory building. The corporation wishes to obtain permission from the government authorities. For this purpose,
the corporation needs certificate from the government regarding environment clearance and change of classification
of land etc. The estimated cost for such permission and clearance was OMR 42, 200. The corporation wishes to
capitalize such cost of getting permission from the government and it should be included capitalized under cost of
construction of factory building.
According to the standards of IAS 16 the cost of an item of property, plant and equipment will be provided
if and only if it is probable that asset must provide future economic benefits. And the cost of permission and
clearance must also have to be measured reliably. Further as per the standards of IAS 16 the recognition of the cost
of permission and clearance will be made at the time when it is incurred. As per the principle of recognition, the
corporation has capitalized the cost of obtaining permission and clearance.
Required:
Case (a)
i. On the role of a financial analyst provide your information about whether the cost of the new wireless
and navigation system can be recognized as an asset?
ii. By considering the replacement cost of the wireless and navigation system, what amount would be
reported as an asset? And How would treat this asset in the company’s financial statements?

Case (b)
i. On the role of a financial analyst justify by your explanation about the decision of capitalizing the cost
of obtaining permission and clearance from the government is correct or not.
ii. If it is correct, how would you treat this cost in the cost in the corporation’s financial statements? 300 word