JC Floor Design makes ceramic tiles

December sales were:

The Marketing Department, projects sales to:

increase by 5% in January     

February sales will be 15,000 units less than January

March sales will be 3% higher than February sales

April sales will be the 5,300 units less than march

The price is not expected to increase

JC inventory policy is to maintain an ending inventory equals to 30% of next month sales. Actual inventory is 168,000 units                         

Clay the material to make the tiles cost $.50 per pound and each tile requires .6 pound. Actual clay inventory is 60,000 pounds and the inventory policy is to maintain an inventory equal to 25% of next month production requirement.

April production is expected to be 525,000 units. The cost of direct materials purchased in December was $150,000                                

Each tile requires .10 hours and the labor hourly rate is $8.00 per hour       

Variable overhead rate is 20% of labor and fixed overhead is 25,000 monthly

Selling and administrative expenses are expected to be

70% of sales are cash sales and the remaining are collected in the next month

Material are paid 60% cash and the remaining the next month

The company has the following obligations:

100,000 in dividends will be paid in February

A new machine will be acquired in January with a cost of 250,000

A short-term loan with an outstanding balance of $150,000 is used to manage the cash position. Interest on the short-term loan are 1% monthly

Taxes of last quarter were $240,000 and will be paid in March. The company tax rate is 35%. and taxes are paid in the next quarter.

1. Compute Finished goods inventory in Balance Sheet

2. Compute Gross Profit

3. Compute after tax income

JC Floor Design makes ceramic tiles December sales were: 500,000 units Selling price $2 per unit 1,000,000 total sales The Marketing Department, projects sales to: increase by 5% in January February sales will be 15,000 units less than January March sales will be 3% higher than February sales April sales will be the 5,300 units less than march The price is not expected to increase JC inventory policy is to maintain an ending inventory equals to 30% of next month sales. Actual inventory is 168,000 units Clay the material to make the tiles cost $.50 per pound and each tile requires .6 pound. Actual clay inventory is 60,000 pounds and the inventory policy is to maintain an inventory equal to 25% of next month production requirement. April production is expected to be 525,000 units. The cost of direct materials purchased in December was $150,000 Each tile requires .10 hours and the labor hourly rate is $8.00 per hour Variable overhead rate is 20% of labor and fixed overhead is 25,000 monthly Selling and administrative expenses are expected to be Administrative salaries $15,000 per month Sales salaries $12,000 per month Sales commissions 10% of sales 70% of sales are cash sales and the remaining are collected in the next month Material are paid 60% cash and the remaining the next month The company has the following obligations: 100,000 in dividends will be paid in February A new machine will be acquired in January with a cost of 250,000 A short-term loan with an outstanding balance of $150,000 is used to manage the cash position. Interest on the short-term loan are 1% monthly Taxes of last quarter were $240,000 and will be paid in March. The company tax rate is 35%. and taxes are paid in the next quarter.

Compute Accounts Receivables in Balance Sheet

Compute Accounts Payable in th Balance Sheet

Compute Cost of goods sold

Compute Gross Profit

Horten 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 Horten made 70,000 tennis racquets and 30,000 badminton racquets). Direct Cost Tennis Racquet (TR) Badminton Racquet (BR) Direct materials $ 28 per unit $ 20 per unit Direct labor 34 per unit 28 per unit Category Estimated Cost Cost Driver Amount of Cost Driver Unit level $ 750,000 Number of inspection hours TR: 15,000 hours; BR: 10,000 hours Batch level 250,000 Number of setups TR: 80 setups; BR: 45 setups Product level 150,000 Number of TV commercials TR: 4; BR: 1 Facility level 650,000 Number of machine hours TR: 30,000 hours; BR: 35,000 hours Total $ 1,800,000 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?

You have answer in the data base on over head allocation tennis for units 450,00 not sure how to get this .For each of overhead allocation I need to give weight and rate. If get do one I can do the rest . How would calculate minimum price for the tennis racquet

Classique Designs sells a variety of merchandise, including school shoes for girls. The business began the last quarter of 2013 with 30 pairs of the “Aerosoles” brand at a total cost of $54,000. The following transactions, relating to the “Aerosoles” brand were completed during the quarter:

October 3 - Purchased 45 pairs of shoes at a cost of $1,900 each.

October 15 - Sold 55 pairs to Casually Elegant Ltd at a unit price of $2,780

October 26 - Purchased 70 pairs at a cost of $2,400 each but these were subject to a trade discount of 5%.

November 10 - Sold 60 pairs to Best City Store which yielded total sales revenue of $192,000.

November 14 - Owing to an increased demand for this brand, the manager of Classique purchased 80 additional pairs of the “Aerosole” brand at a unit cost of $2,500, but additionally there was a freight charge of $100 on each pair.

November 24 - Sold 60 pairs of shoes to Big Buy Company at a price of $3,600 each.

November 30 - A physical stock count on that date revealed that there were 42 pairs of the “Aerosoles” brand in the warehouse.

December 4 - Purchased 75 pairs of shoes at a total cost of $213,750.

December 15 - 5 pairs of the shoes purchased on December 4 were returned to the supplier as they were of the wrong description.

December 30 - Sold 70 pairs to Regal Ltd. at a unit selling price of $4,400.

All purchases were on account and received on the dates stated and Classique Designs uses the FIFO method to account for inventory.

Required:

i) Prepare a perpetual inventory record for Classique Designs, to determine the value of ending inventory at December 31, 2013, and the total amount to be assigned to cost of goods sold for the period.

ii) Calculate the gross profit for the period. iii) You are told that 15 of the units sold on November 24, 2013 were on account. State the journal entries necessary to record the transactions on November 14 and November 24, assuming the business uses the: - Periodic inventory system - Perpetual inventory system

The Hale Company is currently working on its cash budget for the coming year. The following information is available:

Projected sales for the coming year:

The collection history of the Hale Company has been as follows:

20% of sales are collected in the month of the sale.

60% of the sales are collected in the month following the sale.

12% of the sales are collected in the 2^nd month following the sale.

5% of the sales are collected in the 3^rd month following the sale.

The following information regarding costs is available:

The cost of goods sold is 54% of sales

Items for sale are purchased in the month of the sale.

80% of accounts payable are paid in the month following when the cost is incurred.

20% of accounts payable are paid in the 2^nd month following when the cost is incurred.

Wages are 28% of sales and are paid currently

Annual general and administrative costs are $1,411,200 and are incurred evenly throughout the year.

Annual property taxes are $14,000 and are paid semi annually in June and October.

A $10,000 cash capital purchase will be made in April.

The beginning cash balance in April is expected to be $47,000. The Hale Company has a policy of maintaining a minimum cash balance of $45,000. The company has an arrangement with a local bank for a line of credit that carries a 10% annual interest rate. If the ending monthly balance falls below $45,000, the company will borrow against the line of credit so that the minimum balance can be maintained. If the company has borrowed against the line of credit and a cash balance is expected to be above $45,000 at the end of a particular month, then repayments will be made bringing the cash balance down to $45,000. Interest on the line of credit is paid monthly. Assume that all line of credit transactions occur on the last day of the month.

Required:

Prepare a cash budget for the Hale Company for the 2^nd quarter of the year. Include April, May, June, and a quarter total in your budget.

Start each # scenario at equilibrium and full employment (Qf), determine what curve shifts and the impact.

#

Economic Change

Which curve shifts? AD or AS

Does the curve Increase or Decrease?

Does this shift cause a problem of unemployment, inflation, neither or both?

1

Real Interest Rates Decrease

2

Substantial immigration occurs increasing labor supply

3

Citizens Pay off Debt

4

Better Trained workforce increases productivity

5

Excess Capacity increases

6

Increase by the government in Business payroll taxes

7

US dollar appreciates relative to foreigners

8

Increase in Asset value

9

Imported Oil input prices fall

10

Firms are optimistic about future returns

11

Business receives a tax subsidy from the government

12

Expectations of higher citizen incomes

13

Government decreases regulation standards

14

An increase in the number of highway projects

15

Personal Taxes Decrease

16

US dollar depreciates, making imported goods more expensive for producers

17

Older workers retire, decreasing labor supply

18

Less Military spending

19

National Incomes abroad Increase

The company paid interest expense of

$17,200

for 2014 and had an overall tax rate of

40%

for 2014. Find the cash flow from assets for 2014, and break it into its three parts: operating cash flow, capital spending, and change in net working capital.

The operating cash flow is

$?

(Round to the nearest dollar.)

8. Recessions in China, South Korea, Thailand, and Japan would cause

A) the U.S. price level and real GDP to fall.

B) the U.S. price level and real GDP to rise.

C) the U.S. price level to rise and real GDP to fall.

D) the U.S. price level to fall and real GDP to rise.

9. Which of the following is an example of a negative demand shock?

A) an increase in the money supply.

B) a stock market boom held by household.

C) the European debt crisis.

D) an increase in nominal wages.

13. Which of the following statements is true?

A) A demand shock is a sudden event that increases demand for goods or services temporarily.

B) A recessionary gap associated with a business-cycle contraction. A recessionary gap may also be identified as a contractionary gap.
C) An inflationary gap occurs when potential output exceeds actual output.

D) The European debt crisis is an example of a negative supply shock.

14. Stagflation may result from:

A) an increase in the supply of money or an increase in government spending.

B) a decrease in income taxes or a decrease in foreign income.

C) a stock market crash held by households or an increase in prices of houses.

D) an increase in nominal wages or a decrease in labor productivity.

1. Draw the money market with the value of money on the vertical axis and the amount of money on the horizontal axis. For each event below, state the anticipated effect on the price level. (for each part, include a sketch of the shift either in money demand or money supply to support your answer)

a. the Federal Reserve conducts an open-market purchase of bonds from the public

b. consumer confidence is up, and so we see consumers buying more goods and services

c. the interest rate rises inducing households to hold more bonds

b. Draw the Aggregate Demand and Aggregate Supply model in long run equilibrium, with the price level on the vertical axis and real output on the horizontal axis. For each event below, state the effect on the price level and real output in the short run for the US economy. (for each part, include a sketch of the shift either in demand or supply to support your answer)

a. A recession in Canada lowers consumer spending in Canada, who typically holds a trade deficit with the US

b. A new federal tax code lowers the income tax for households

c. Oil prices rise

d. A net inflow of capital which leads to a higher level of capital stock in the domestic economy