Pronghorn Corp reports the following for the month of June.

A sale of 375 units occurred on June 15 for a selling price of $8 and a sale of 51 units on June 27 for $9.

Calculate the average cost per unit, using a perpetual inventory system. (Round answers to 3 decimal places, e.g. 5.125.)

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Calculate cost of the ending inventory and the cost of goods sold for each cost flow assumption, using a perpetual inventory system. Assume a sale of 375 units occurred on June 15 for a selling price of $8 and a sale of 51 units on June 27 for $9. (Round answers to 0 decimal places, e.g. 125.)

You must include all EXCEL printouts and the 6 step write-up for both problems. The questions are given below.

USING ANOVA: Assuming variances are equal.

Concerned about Friday absences, management examined the number of persons absent for each of the past three Fridays. Does this sample provide sufficient evidence to conclude there is a significant difference in the average number of absences? Use alpha = .05.

1. Is there sufficient evidence of a difference in the variances in number of absences among the four plants? (Set alpha = to .05)

2. Provide the p-value for part a, and explain its meaning in words.

3. Is there sufficient evidence to indicate a difference in the mean number of absences among the four plants? (Set alpha = to .05)

4. Provide the p-value for part a, and explain its meaning in words.

5. If there is a difference in the means, what test would you use to figure out which ones are different?

In North America and Europe, as countries developed from the late 19th to the late 20th century, social insurance (public pension) schemes, unemployment benefits, and publicly provided health care and welfare schemes became more pervasive. Over that period, the extended family was replaced by the nuclear family. Use the concepts of economies of scope and path dependency to explain why this happened and why the transformation took several generations.

If the market is strong-form efficient, which of the following statements is false?

China has resurrected an exchange rate regime called Bretton Woods II, where these economies peg to the dollar. China pegged at Yuan8.28/$ from 1995 to 2005. (http://www.tradingeconomics.com/china/currency). On July 21, 2005, the People's Bank of China announced a revaluation of the Yuan (from Yuan8.28 to Yuan8.11 to the dollar) and a reform of the exchange rate regime. Under the reform., the People’s Bank of China linked its currency to a reference basket of currencies, heavily weighted toward the U.S. dollar. Over the next three years, under this crawling peg system, the yuan gradually appreciated against the dollar. With the advent of the global economic crisis, China reestablished the yuan's fixed peg to the dollar, at Yuan6.84/$ and maintained it for the next two years. China rolled out a new currency policy on June 20, 2010, that allowed the yuan to once again float upward, within limits, against the dollar; de facto, however, the Bretton Woods II regime remains intact and the currency pegged to the U.S. dollar. The Chinese central bank has managed this peg with widespread capital controls through quantitative limits on both inflows and outflows. The objectives of the controls have evolved over time, and include (i) facilitating monetary independence, (ii) helping channel external savings to desired uses; (iii) preventing firms and financial institutions from taking excessive external risks; (iv) maintaining balance of payments equilibrium and exchange rate stability; and (v) insulating the domestic economy from foreign financial crises.

Recently, the government has started to gradually liberalize capital flows and globally integrate China's capital markets in order to eventually establish Shanghai as a leading financial center. It remains unclear, however, whether China will yield more on monetary independence or exchange rate stability. Chinese authorities fear floating exchange rates, since they want to avoid a rapid and large appreciation of the yuan. This could have serious effects on employment and profits of multinationals in their export sector.

1. By how much did the yuan appreciate against the dollar on July 21,2005?

2. How has the yuan’s appreciation since July 21,2005 affected the U.S. trade deficit with China? Check the trade deficit with China over time at https://www.census.gov/foreign-trade/balance/c5700.html

3. How did the crawling-peg system in place from 2005 to 2008 likely affect inflows of hot money to China?

4. What is the likely reason for the Chinese government again fixing the yuan to the dollar upon the outbreak of the global economic crisis?

5. Why has China adopted capital controls?

Ethical Considerations

Objective 3

Lindell Manufacturing embarked on an ambitious quality program that is centered on continual improvement. This improvement is operationalized by declining quality costs from year to year. Lindell rewards plant managers, production supervisors, and workers with bonuses ranging from $1,000 to $10,000 if their factory meets its annual quality cost goals.

Len Smith, manager of Lindell's Boise plant, felt obligated to do everything he could to provide this increase to his employees. Accordingly, he has decided to take the following actions during the last quarter of the year to meet the plant's budgeted quality cost targets:

1. Decrease inspections of the process and final product by 50% and transfer inspectors temporarily to quality training programs. Len believes this move will increase the inspectors' awareness of the importance of quality; also, decreasing inspection will produce significantly less downtime and less rework. By increasing the output and decreasing the costs of internal failure, the plant can meet the budgeted reductions for internal failure costs. Also, by showing an increase in the costs of quality training, the budgeted level for prevention costs can be met.

2. Delay replacing and repairing defective products until the beginning of the following year. While this may increase customer dissatisfaction somewhat, Len believes that most customers expect some inconvenience. Besides, the policy of promptly dealing with customers who are dissatisfied could be reinstated in 3 months. In the meantime, the action would significantly reduce the costs of external failure, allowing the plant to meet its budgeted target.

3. Cancel scheduled worker visits to customers' plants. This program, which has been very well received by customers, enables Lindell workers to see just how the machinery they make is used by the customer and also gives them first-hand information on any remaining problems with the machinery. Workers who went on previous customer site visits came back enthusiastic and committed to Lindell's quality program. Lindell's quality program staff believes that these visits will reduce defects during the following year.

Required:

1. Evaluate Len's ethical behavior. In this evaluation, consider his concern for his employees. Was he justified in taking the actions described? If not, what should he have done?

2. Assume that the company views Len's behavior as undesirable. What can the company do to discourage it?

3. Assume that Len is a CMA and a member of the IMA. Refer to the ethical code for management accountants in Chapter 1. Were any of these ethical standards violated?

On April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company’s first month. April 1 Nozomi invested $37,000 cash and computer equipment worth $40,000 in the company in exchange for common stock.

2 The company rented furnished office space by paying $1,900 cash for the first month’s (April) rent.

3 The company purchased $1,600 of office supplies for cash.

10 The company paid $2,200 cash for the premium on a 12-month insurance policy. Coverage begins on April 11.

14 The company paid $1,500 cash for two weeks' salaries earned by employees.

24 The company collected $17,500 cash for commissions revenue.

28 The company paid $1,500 cash for two weeks' salaries earned by employees.

29 The company paid $450 cash for minor repairs to the company's computer.

30 The company paid $1,450 cash for this month's telephone bill.

30 The company paid $2,300 cash in dividends.

The company's chart of accounts follows:

101 Cash 405 Commissions Revenue 106 Accounts Receivable 612 Depreciation Expense—Computer Equip. 124 Office Supplies 622 Salaries Expense 128 Prepaid Insurance 637 Insurance Expense 167 Computer Equipment 640 Rent Expense 168 Accumulated Depreciation—Computer Equip. 650 Office Supplies Expense 209 Salaries Payable 684 Repairs Expense 307 Common Stock 688 Telephone Expense 318 Retained Earnings 901 Income Summary 319 Dividends

Use the following information:

Prepaid insurance of $122 has expired this month.

At the end of the month, $600 of office supplies are still available.

This month’s depreciation on the computer equipment is $500.

Employees earned $500 of unpaid and unrecorded salaries as of month-end.

The company earned $1,650 of commissions that are not yet billed at month-end.

Required: 1. & 2. Prepare journal entries to record the transactions for April and post them to the ledger accounts in Requirement 6b.

The company records prepaid and unearned items in balance sheet accounts.

3. Using account balances from Requirement 6b, prepare an unadjusted trial balance as of April 30. 4. Journalize the adjusting entries for the month and prepare the adjusted trial balance. 5a. Prepare the income statement for the month of April 30. 5b. Prepare the statement of retained earnings for the month of April 30. 5c. Prepare the balance sheet at April 30. 6a. Prepare journal entries to close the temporary accounts and then post to Requirement 6b. 6b. Post the journal entries to the ledger. 7. Prepare a post-closing trial balance.

What is the PV of $260 received in: (Do not round intermediate calculations. Round your answers to 2 decimal places.)

a. Year 8 (at a discount rate of 3%)? Present value $

b. Year 8 (at a discount rate of 15%)? Present value $

c. Year 13 (at a discount rate of 27%)? Present value $

d. Each of years 1 through 3 (at a discount rate of 14%)? Present value $

Carnes Cosmetics Co.'s stock price is $57, and it recently paid a $1.75 dividend. This dividend is expected to grow by 27% for the next 3 years, then grow forever at a constant rate, g; and rs = 12%. At what constant rate is the stock expected to grow after Year 3? Do not round intermediate calculations. Round your answer to two decimal places. 6.62% is the wrong answer by the way