Please discuss the cost of quality as a combination of cost of conformance and cost of no conformance

A price index is NOT

Select one: a. an inflation rate. b. a way to track the prices for a group of products c. a weighted average price of some type of good or service (e.g. consumer prices). d. the cost of a specific basket of goods and services.

Henry accepted a new position at a ball bearing manufacturing plant after graduation from college. With his macroeconomic education, Henry has been asked to advise the best way to measure inflation for the company to be able to accurately adjust its prices. What would Henry advise the company use?

Select one: a. Energy price index b. Producer Price Index c. GDP Deflator d. Consumer Price Index

The unemployment rate measures:

Select one:

a. The percentage of working age adults who are employed.

b. The percentage of the labor force who do not have a job, but are looking for one.

c. The percentage of working age adults who are unemployed but not looking for work.

d. The percentage of working age adults who are unemployed.

Question 17

To find unemployment, you need to calculate

Select one:

a. The number of discouraged workers divided by the number of civilian workers.

b. The number of unemployed workers divided by the labor force.

c. The number in the labor force divided by the population.

d. The percentage of people not working out of the civilian population

Question 18

Tom graduated from college in June but was still looking for work in August. This is an example of ________.

Select one:

a. cyclical unemployment.

b. structural unemployment.

c. seasonal unemployment

d. frictional unemployment.

Question 19

Using your understanding of economic history and inflation, which inflation target is most advisable?

Select one:

a. 10-20%

b. 0%

c. 5-10%

d. 1-2%

Question 20

Which of the following demographic has the highest unemployment rate according to U.S. Census Bureau data?

Select one:

a. Young African-American men

b. Asian men

c. Middle-aged Hispanic Women

d. Older caucasian men

Among all high-income countries, which consistently has the lowest long-run unemployment rate in the past 30 years?

Select one:

a. United States

b. United Kingdom

c. Japan

d. France

A year ago Parker reached his retirement and left the business to pursue other interests. He is now spending lots of time playing golf and visiting his grandchildren. For purposes of employment he is considered:

Select one:

a. unemployed.

b. out of the labor force.

c. underemployed.

d. in the labor force

The National Assessment for Educational Progress (NAEP) is a U.S. government organization that assesses the performance of students and schools at all levels across the United States. The following table presents the percentage of eighth-grade students who were found to be proficient in mathematics, and the percentage who were found to be proficient in reading in each of the ten most populous states.

a. Identify the explanatory variable (x) and the response variable (y).

Explanatory variable:

Response variable

b. Use your calculator to find the correlation coefficient ?. Based on the correlation coefficient, what can you say about the association between proficiency in reading and proficiency math?

? =

c. State the least squares regression line ?̂. (Use your calculator)

d. Within the context of the problem give an interpretation of the intercept of ?̂.

e. Find the best predicted percentage proficiency in Math for a student who has a proficiency of 70 percent in Reading.

The National Assessment for Educational Progress (NAEP) is a U.S. government organization that assesses the performance of students and schools at all levels across the United States. The following table presents the percentage of eighth-grade students who were found to be proficient in mathematics, and the percentage who were found to be proficient in reading in each of the ten most populous states.

a. Identify the explanatory variable (x) and the response variable (y). Explanatory variable: Response variable:

b. Use your calculator to find the correlation coefficient ?. Based on the correlation coefficient, what can you say about the association between proficiency in reading and proficiency math? ? =

c. State the least squares regression line ?̂. (Use your calculator) d. Within the context of the problem give an interpretation of the intercept of ?̂.

e. Find the best predicted percentage proficiency in Math for a student who has a proficiency of 70 percent in Reading.

a. suppose the multiplier is 1.5, the income multiplier with respect to the money supply is 2, the money multiplier is 4.5, and a central bank purchase of $6b of bonds during a recession drops the interest rate by one percentage point. suppose that to fight a recession, monetary policy is undertaken to lower the interest rate by two-thirds of a percentage point. what should happen to the income level?

b.suppose the short run Phillips curve is duch that a two-percentage point increase in inflation decreases unemployment by one percentage point. suppose the economy is in long run equilibrium with a real growth rate of 2% and an unemployment rate of 7% and the central bank increases the rate of growth of the money supply from 5% to 8%. when the economy has reached its new long run equilibrium, what will be the levels of inflation and unemployment?

c.suppose that in equilibrium the Canadian dollar is depreciating relative to the U.S. dollar by 5% per year. suppose changes in the U.S. cause the U.S. real interest rate to rise from 3.5% to 4.5% and the U.S inflation rate to increase from 4% to 6%. assuming a risk premium of one percentage point, after the canadian economy has settled to a new equilibrium, what is its nominal interest rate?

Chapter 5 Recording Capital Asset Transactions

Street Improvement Capital Projects Fund and Governmental Activities at the Government-wide Level

During late 2016, the voters of the City of Smithville authorized tax-supported bond issues totaling $8,000,000 as partial financing for a series of projects to construct streets, curbs, culverts, and storm sewers in various parts of the city. The estimated total cost of the series of projects, which are expected to extend over the next three years, was $10,200,000. In addition to the bond financing, voters also approved a special ½ cent sales tax to assist in financing the projects. The sales tax begins January 1, 2017 and will continue for five years. The sales tax is projected to generate $500,000 each year.

Required

a. Prepare general journal entries as necessary to record the transactions described below in the Street Improvement Fund general journal and, if applicable, in the governmental activities general journal. Do not record entries at this time in other affected funds; those entries will be made in the later chapters of this cumulative problem that cover the affected funds. Use account titles listed under the drop down [Account (# - Description)] menu. Be sure the year 2017 is selected from the drop-down [Year] menu and the appropriate paragraph number shown in bold-face font below is in the [Transaction Description] box.

Before closing the City of Smithville, click on [File], and [Save/Save As] to save your work. If you close the file by clicking on the [X] box you will be asked if you want to save your changes before closing.

1.[Para. 5-a-1] In early 2017, design plans and specifications for the first project, the Elm Street Project, were submitted by a construction engineering firm. The firm billed the Street Improvement Fund for $125,000.

Required: Record this billing and the related Vouchers Payable liability in the Street Improvement Fund and governmental activities journals. (Note: this transaction was not encumbered.)

2.   [Para. 5-a-2] On April 15, 2017, construction bids were opened and analyzed. A bid of $2,100,000 was accepted, and the contract was awarded for the Elm Street Project. The contract provided for a retained percentage of 5 percent from each progress payment, and from the final payment, until final inspection and acceptance by the city’s public works inspectors.

Required: Record the signing of the contract in the Street Improvement Fund general journal. This transaction has no effect at the government-wide level.

[Para. 5-a-3] On May 6, 2017, 4% deferred serial bonds with a face value of $2,000,000 were sold for a total amount of $2,070,000, of which $28,000 was for accrued interest from the January 1, 2017 date of the bonds and $42,000 was a premium on the bonds sold. Cash in the amount of the accrued interest and premium was deposited directly in the Street Improvement Bond Debt Service Fund. Cash in the amount of $2,000,000 was deposited and recorded in the Street Improvement Fund.

Required: Record this transaction in the Street Improvement Fund and governmental activities journals. (Hint: In addition to recording the liability for bonds payable in the governmental activities journal, you should record the premium on the bonds payable [credit Premium on Deferred Serial Bonds] and accrued interest on bonds sold [we recommend that you credit Expenses—Interest on Long-term Debt] in the governmental activities general journal for the $28,000 of accrued interest.) For now you should not make the entry in the Street Improvement Bond Debt Service Fund to record the accrued interest and premium. That entry will be made in Chapter 6 of this cumulative problem.

4.   [Para. 5-a-4] Vouchers payable (see Transaction 1) were paid on April 20, 2017.

Required: Record this transaction in both the Street Improvement Fund and governmental activities general journals.

[Para. 5-a-5] In July 2017, the contractor for the Elm Street Project reported that the project was one-half completed and requested a progress payment of $1,050,000.

Required: Record the liability for the progress billing in both the Street Improvement Fund and governmental activities general journals.

[Para. 5-a-6] The billing for the partially completed Elm Street Project (see Transaction 5) was paid in late July, less the contractual retention of 5 percent.

Required: Record this transaction in both the Street Improvement Fund and governmental activities general journals.

7.[Para. 5-a-7] In late November 2017 the Elm Street Project was completed and the contractor for the project requested a final payment of $1,070,000. This amount was recorded as a liability.

Required: Record the liability for the final billing in both the Street Improvement Fund and governmental activities journals.

8.[Para. 5-a-8] During the year sales taxes were collected in the amount of $450,000.

Required: Make the summary journal entries in both the Street Improvement Fund and governmental activities journals to record the collection of sales taxes.

9. [Para. 5-a-9] Payment was made for the final billing on the Elm Street Project, less the retained percentage, on December 1, 2017.

Required: Record this transaction in both the Street Improvement Fund and governmental activities journals.

10.[Para. 5-a-10] Upon final inspection of the Elm Street Project, the city inspector determined that all work conformed to specifications. Retained percentages (Transactions 6 and 8) were paid to the contractor.

Required: Record this transaction in both the Street Improvement Fund and governmental activities journals. Total construction expenditures for the Elm Street Project should be capitalized in the Infrastructure account in governmental activities.

Consider cost theory.

a. Prove that marginal cost and average cost are equal where average cost is minimized.

b. Respecting the standard U-shaped long-run average cost curve, briefly provide two distinct explanations for the downward sloping part of the curve, and an explanation for the upward sloping part.

c. Suppose an electricity distribution firm purchases a number of metal poles for inventory at a price of ?? per pole. Sometime later, metal poles become obsolete in the industry in favour of fiberglass poles, and command a price of ?? per pole in the scrap metal market. By the time the firm switches to fiberglass poles, some of the metal poles previously purchased remain in the firm’s inventory. The price of a fiberglass pole is ??. Assume that 0 < ?? < ?? < ??. In terms of these variables, quantify the accounting and economic costs of each of the following activities:

i. Past purchase of a metal pole for inventory.

ii. Current purchase of a fiberglass pole for inventory.

iii. Keeping a fiberglass pole in inventory.

iv. Keeping a metal pole in inventory.

v. Selling an uninstalled metal pole for scrap. Briefly explain which of the quantified costs are sunk.

Consider cost theory.

a. Prove that marginal cost and average cost are equal where average cost is minimized.

b. Respecting the standard U-shaped long-run average cost curve, briefly provide two distinct explanations for the downward sloping part of the curve, and an explanation for the upward sloping part.

c. Suppose an electricity distribution firm purchases a number of metal poles for inventory at a price of ?? per pole. Sometime later, metal poles become obsolete in the industry in favour of fiberglass poles, and command a price of ?? per pole in the scrap metal market. By the time the firm switches to fiberglass poles, some of the metal poles previously purchased remain in the firm’s inventory. The price of a fiberglass pole is ??. Assume that 0 < ?? < ?? < ??. In terms of these variables, quantify the accounting and economic costs of each of the following activities:

i. Past purchase of a metal pole for inventory.

ii. Current purchase of a fiberglass pole for inventory.

iii. Keeping a fiberglass pole in inventory.

iv. Keeping a metal pole in inventory.

v. Selling an uninstalled metal pole for scrap. Briefly explain which of the quantified costs are sunk.

Briefly explain which of the quantified costs are sunk.

Mathews Company manufactures only one product. For the year ended December 31, the contribution margin increased by $16,224 from the planned level of $545,376. The president of Mathews Company has expressed some concern about this increase and has requested a follow-up report.

The following data have been gathered from the accounting records for the year ended December 31:

Required:

1. Prepare a contribution margin analysis report for the year ended December 31.

2. At a meeting of the board of directors on January 30, the president, after reviewing the contribution margin analysis report, made the following comment:

It looks as if the price increase of $14 was a favorable tradeoff for decreased sales volume, yet variable cost of goods sold was less than planned and variable selling and administrative expenses were out of control and needed to be investigated. He went on to say that since the favorable tradeoff between higher price and lower sales volume was so successful, the company should consider increasing the sales price to $130.

Do you agree or disagree with the president's proposal and which reason would best explain your decision about the data?

Disagree with the president because the majority of the decrease in the variable cost of goods sold was due to the variable cost quantity factor and the increased variable selling and administrative expenses are probably a result of additional selling efforts needed to be competitive at higher prices.

Agree with the president because the unit cost factor for the variable selling and administrative cost is greater than the unit cost factor for the variable cost of goods sold, making an investigation necessary.

Agree with the president because the total effect of change in sales is greater than the total effect of changes in variable cost of goods sold, making an additional price raise attractive for more profits.

Disagree with the president because the contribution margin as a percentage of sales is greater for the planned sales level than the actual sales level, making his concern about variable selling and administrative expenses unwarranted.

Agree with the president because the majority of the decrease in the variable cost of goods sold was due to the sales price factor, as well as an increase in the variable selling and administrative expenses as a percentage of sales, making an additional price raise attractive for more profits.

The correct answer is:

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

Journalize and post the above transactions Normal, Adjusting, and Closing Entries

Prepare Financial Statements and Worksheets (Three Trial Balances)

Prepare a Trial Balance

Prepare an Adjusted Trial Balance