Vaden Company is a manufacturing firm that uses job-order costing. At the beginning of

the year, the company’s inventory balances were as follows:

Raw materials

$39,000

Work in process

$49,000

Finished goods

$10,000

The company applies overhead to jobs using a predetermined overhead rate based on

machine-hours. At the beginning of the year, the company estimated that it would work

22,000 machine-hours and incur $264,000 in manufacturing overhead cost. The

following transactions were recorded for the year:

i.

Raw materials were purchased, $301,000.

ii.

Raw materials were requisitioned for use in production, $292,000 ($273,000

direct and $19,000 indirect).

iii.

The following employee costs were incurred: direct labor - $296,000; indirect

labor - $81,000; and administrative salaries, $181,000.

iv.

Selling costs, $130,000.

v.

Factory utility costs, $18,000.

vi.

Depreciation for the year was $162,000 of which $155,000 is related to

factory operations and $7,000 is related to selling and administrative

activities.

vii.

Manufacturing overhead was applied to jobs. The actual level of activity for

the year was 21,000 machine-hours.

viii.

Goods totaling $839,000 were transferred to finished goods.

ix.

Sales for the year totaled $1,200,000 and the costs on the job cost sheets of the

goods that were sold totaled $824,000.

x.

The balance in the Manufacturing Overhead account was closed out to Cost of

Goods Sold.

Required (15 points):

a. Prepare the appropriate journal entries for each of the above items.

b. Show in T-accounts the year-end balances for each of the inventory accounts, the cost

of goods sold and manufacturing overhead.

As the year progresses towards February and March, the incidence of that common cold from January has increased to 0.45 (45%). Consider the class size n=25.
a) If the random variable X represents the number of people sick with the common cold, what distribution it follows?
b) What is the possibility of 20 people being sick?
c) What is the possibility of at least 10 people being sick?
d) What is the possibility of at most 5 people being sick?

Below is an alphabetical list of the adjusted accounts of Cullumber Tour Company at its year end, December 31, 2021. All accounts have normal balances.

Additional information:

a) Prepare closing journal entries and calculate the post-closing balance in F. Cullumber, Capital on December 31, 2021.

b) Prepare a classified balance sheet. (List Current Assets in order of liquidity.)

You are evaluating a project that is expected to produce cash flows of $5,000 each year for the next 3 years and $7,000 each year for the following 3 years. The IRR of this 6-year project is 12%. If the firm’s WACC is 10%, what is the project’s NPV?

ASK YOUR TEACHER

According to a survey conducted in a certain year by the Federal Communications Commission (FCC) of 3005 adults who were home broadband users, 31.5% of those surveyed had switched their service over the past 3 years. Of those who had switched service in the past 3 years, 53% were very satisfied, 37% were somewhat satisfied, and 10% were not satisfied with their service. Of the 68.5% who had not switched service in the past 3 years, 46% were very satisfied, 43% were somewhat satisfied, and 11% were not satisfied with their service.

(a) What is the probability that a participant chosen at random had not switched service in the past 3 years and was very satisfied with their service?


(b) What is the probability that a participant chosen at random was not satisfied with their service?

Consider a five-year bond with a 10% coupon selling at a yield to maturity of 8%. If interest rates remain constant, one year from now the price of this bond will be:

A. Higher

B. Lower

C. The same

D. Par

a.) As of the end of the accounting period, December 31, Year 1, Great Plains Company has assets of $900,000 and liabilities of $300,000. During Year 2, stockholders invested an additional $75,000 in Great Plains Company and received $30,000 in dividends from Great Plains Company.

What is the amount of net income during Year 2, assuming that as of December 31, Year 2, assets were $995,000 and liabilities were $200,000?

b.) A firm hired an employee that will make $100 per day, and will be paid on the 1st and 15th of every month. Assume the employee works 10 days in each pay period.

Which of the following adjusting entries (if any) should the firm make at the end of each month assuming that the employee works the full 10 days in each pay period?

THE GAP INC.

1. (*) Compare the company’s cash position (The Gap Inc) for the year under review with that of the previous year (2020/2019). 2. Comment on the improvement or deterioration of the company’s cash position. 3. (*) Which method (direct or indirect) did the company use in the preparation of its statement of cash flows? 4. (*) State the main sources of cash inflow during the year and the main uses to which cash has been used.