Indigo Company began operations on 1/1/20 and produces tumbling mats and rebound mats for cheerleading. Both types of mats are manufactured from a joint process. During January 2020, the company incurred joint production costs of $89,500 and produced 2,000 tumbling mats and 500 rebound mats. Indigo believes the tumbling mats will require separate costs past the split-off point of $14.00 per unit, and the company believes it will be able to sell the tumbling mats for $150.00 per unit. Indigo believes the rebound mats will require separate costs past the split-off point of $10.00 per unit, and the company believes it will be able to sell the rebound mats for $100.00 per unit.

1. What amount of joint costs should be allocated to each product using the physical units method?
2. What amount of joint costs should be allocated to each product using the constant gross margin percentage method?

Myers Company uses a flexible budget for manufacturing overhead based on direct labor hours. Variable manufacturing overhead costs per direct labor hour are as follows.

Fixed overhead costs per month are Supervision $3,900, Depreciation $1,100, and Property Taxes $700. The company believes it will normally operate in a range of 5,900–9,800 direct labor hours per month.

Assume that in July 2020, Myers Company incurs the following manufacturing overhead costs.

(a) Prepare a flexible budget performance report, assuming that the company worked 8,500 direct labor hours during the month and prepare a flexible budget performance report, assuming that the company worked 7,800 direct labor hours during the month.. (List variable costs before fixed costs.)

The following series of transactions occurred during 2020 and 2021 for Lannister Corporation following the sale of merchandise to Golden Company Limited for $65,000 on credit. Lannister Corporation 's fiscal year end is December 31. Assume 28 days in the month of February.

Required:

1. Prepare the journal entries for the transactions for the transactions listed above. Round to 2 decimal places.

Suppose in July of 2008, the true proportion of U.S. adults that thought unemployment would increase was 47%. In November of 2008, the same question was asked to a simple random sample of 1000 U.S. adults and 432 of them thought unemployment would increase. Can we conclude that the true proportion of U.S. adults that thought unemployment would increase in November is less than the proportion in July? Use a 5% significance to test.
Round to the fourth
H0: Select an answer x̄ p̂ μ p  Select an answer = < > ≠  
HA: Select an answer x̄ p̂ μ p  Select an answer = < > ≠  
What's the minimum population size required?
How many successes were there?
Test Statistic:
P-value:
Did something significant happen? Select an answer Significance Happened Nothing Significant Happened
Select the Decision Rule: Select an answer Reject the Null Accept the Null Fail to Reject the Null
Select an answer: is or is not  enough evidence to conclude Select an answer that the true proportion of U.S. adults that thought unemployment would increase in November is less than 0.47 that the true proportion of U.S. adults that thought unemployment would increase in November is more than 0.47 that the true proportion of U.S. adults that thought unemployment would increase in November is 0.47

Build a 90% confidence interval and decide if you can conclude the same. Use your calculator to do this and round to the fourth decimal place.
( , )
Can we conclude the same as our Hypothesis Test?
Select an answer no yes  because the true proportion of U.S. adults in November 2008 that thought unemployment would increase

Raleigh Department Store uses the conventional retail method for the year ended December 31, 2019. Available information follows:

1. The inventory at January 1, 2019, had a retail value of $50,000 and a cost of $36,200 based on the conventional retail method.
2. Transactions during 2019 were as follows:

Sales to employees are recorded net of discounts.

3. The retail value of the December 31, 2020, inventory was $104,325, the cost-to-retail percentage for 2020 under the LIFO retail method was 70%, and the appropriate price index was 107% of the January 1, 2020, price level.
4. The retail value of the December 31, 2021, inventory was $53,350, the cost-to-retail percentage for 2021 under the LIFO retail method was 69%, and the appropriate price index was 110% of the January 1, 2020, price level.

Required:
3. Assume Raleigh Department Store adopts the dollar-value LIFO retail method on January 1, 2020. Estimating ending inventory for 2020 and 2021.

QUESTION 2

1. Noor Corp.'s statements of financial position at December 31, 2020 and 2019 and information relating to 2020 activities are presented below:

       December 31, ___

      2020                       2019

   Assets

            Cash.............................................................................................    $ 110,000               $ 50,000

            Temporary investments.................................................................          150,000                            —

            Accounts receivable (net)..............................................................          255,000                255,000

            Inventory......................................................................................       345,000                300,000

            Long-term investments..................................................................       100,000                150,000

            Property, plant and equipment......................................................      850,000                500,000

            Accumulated depreciation............................................................       (225,000)             (225,000)

            Goodwill.......................................................................................             45,000                   50,000

                      Total assets............................................................................   $ 1,630,000         $ 1,080,000

   Liabilities and Shareholders' Equity

            Accounts payable..........................................................................       $ 415,000             $ 360,000

            Long-term note payable................................................................          145,000                            —

            Common shares............................................................................          600,000                475,000

            Retained earnings.........................................................................          470,000                245,000

                      Total liabilities and shareholders' equity................................   $ 1,630,000         $ 1,080,000

   Other information relating to 2020 activities:

   1.      Net income was $ 375,000.

   2.      Cash dividends of $ 150,000 were declared and paid.

   3.      Equipment costing $ 250,000, with a book value of $ 80,000, was sold for $ 90,000.

   4.      A long-term investment was sold for $ 80,000. There were no other transactions affecting long-term investments.

   5.      5,000 common shares were issued for $ 25 a share.

   6.      Temporary investments consist of treasury bills maturing on June 30, 2020

   Required

   A. Calculate the cash used in investing activities in 2020

   B. Calculate the cash provided by financing activities in 2020

Ayayai Windows manufactures and sells custom storm windows for three-season porches. Ayayai also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be performed by other vendors. Ayayai enters into the following contract on July 1, 2020, with a local homeowner. The customer purchases windows for a price of $2,480 and chooses Ayayai to do the installation. Ayayai charges the same price for the windows irrespective of whether it does the installation or not. The customer pays Ayayai $2,010 (which equals the standalone selling price of the windows, which have a cost of $1,140) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2020, Ayayai completes installation on October 15, 2020, and the customer pays the balance due.

Prepare the journal entries for Ayayai in 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round answer to 0 decimal places, e.g. 5,125.)

[The following information applies to the questions displayed below.]

Raleigh Department Store uses the conventional retail method for the year ended December 31, 2019. Available information follows:

1. The inventory at January 1, 2019, had a retail value of $45,000 and a cost of $27,500 based on the conventional retail method.
2. Transactions during 2019 were as follows:
   

Sales to employees are recorded net of discounts.

3. The retail value of the December 31, 2020, inventory was $56,100, the cost-to-retail percentage for 2020 under the LIFO retail method was 62%, and the appropriate price index was 102% of the January 1, 2020, price level.
4. The retail value of the December 31, 2021, inventory was $48,300, the cost-to-retail percentage for 2021 under the LIFO retail method was 61%, and the appropriate price index was 105% of the January 1, 2020, price level.

Required:
3. Assume Raleigh Department Store adopts the dollar-value LIFO retail method on January 1, 2020. Estimate ending inventory for 2020 and 2021.

Total ending inventory at dollar-value LIFO retail cost, 2021 = ?

Total ending inventory at dollar-value LIFO retail cost, 2020 = ?

Leopard Ltd's financial year ended on 30 June 2020. The following events occurred between the end of the reporting period and the date the directors of Leopard Ltd expect to authorise the financial statements for issue:

1. On 25 July 2020, directors proposed a final dividend of $180 000 which requires approval at the annual general meeting.
2. On 15 July 2020, the financial cost of inventory shipped from overseas is determined. The inventory was received in June 2020 and the cost was estimated for accounting purposes. The revised cost is $80 000 greater than the prior estimate.
3. A customer of Leopard Ltd, is declared insolvent on 16 August 2020 as the customer’s uninsured premises were destroyed by a cyclone. The customer owed Leopard Ltd $600 000 as at 30 June.
4. The government announced an increase in tax rates from 30 per cent to 33 per cent for the year commencing 1 July 2020 the deferred tax liability account is $250 000.

REQUIRED

For each of the above material after-reporting-period events, state the reason why an adjustment or disclosure may or may not be required in the 30 June 2020 financial statements. Assume the above events would not significantly affect the going-concern assumption for Leopard Ltd. You are not required to draft any financial statement notes or provide any journal entries for adjustments.

PRACTICAL QUESTION   

Tiger Construction Ltd signs a contract on 1 May 2018 to build a theme park. The construction is scheduled to commence on 1 July 2018 and the estimated date of completion is 30 June 2021. The total contract price is $5m and the cost of the park is initially estimated at $4.5m. The following data relates to the construction period:

Assume that cost (an input measure) is used as the basis for assessing progress on the construction contract.

Required

Determine the percentage of completion for 2019, 2020 and 2021.              

Calculate revenue and gross profit for 2019, 2020 and 2021.                          

Using the percentage of completion method, provide the journal entries for 2019, 2020 and 2021.