Providence Hospital generates monthly performance reports for each of its departments. The hospital must maintain an adequate staff of attending and on-call physicians at all times, so physician costs are not affected by the number of patient visits. But all other costs do vary with patient activity. Nurse-hours are used as the activity measure for nurse costs, and patient visits are used as the activity measure for the cost of supplies and other variable costs.

The head physician of the hospital's emergency room, Yolanda Mortensen, is responsible for control of costs. During October, the emergency room unit expected to treat 3,500 patients but actually treated 3,600 patients. The following additional information for October is available:

Required
Compute the flexible-budget variances for each of the cost categories for October (NOTE: enter favorable variances as positive numbers and unfavorable variances as negative numbers):

Nursing costs:_________

  Supplies and other variable costs:__________

  Fixed costs:___________

Providence Hospital generates monthly performance reports for each of its departments. The hospital must maintain an adequate staff of attending and on-call physicians at all times, so physician costs are not affected by the number of patient visits. But all other costs do vary with patient activity. Nurse-hours are used as the activity measure for nursing costs, and patient visits are used as the activity measure for the cost of supplies and other variable costs.

The head physician of the hospital's emergency room, Yolanda Mortensen, is responsible for control of costs. During October, the emergency room unit expected to treat 3,700 patients but actually treated 4,200 patients. The following additional information for October is available:

Required
Compute the flexible-budget variances for each of the cost categories for October (NOTE: enter favorable variances as positive numbers and unfavorable variances as negative numbers):

  Nursing costs    

  Supplies and other variable costs    

  Fixed costs

Board Company has a foreign subsidiary that began operations at the start of 2017 with assets of 152,000 kites (the local currency unit) and liabilities of 94,000. During this initial year of operation, the subsidiary reported a profit of 46,000 kites. It distributed two dividends, each for 7,000 kites with one dividend declared on March 1 and the other on October 1. Applicable exchange rates for 1 kite follow:

1. Assume that the kite is this subsidiary’s functional currency. What translation adjustment would Board report for the year 2017?

2. Assume that on October 1, 2017, Board entered into a forward exchange contract to hedge the net investment in this subsidiary. On that date, Board agreed to sell 195,000 kites in three months at a forward exchange rate of $0.74/1 kite. Prepare the journal entries required by this forward contract.

3. Compute the net translation adjustment for Board to report in accumulated other comprehensive income for the year 2017 under this second set of circumstances.

"Mankota Company’s purchasing manager, Fernando Garza, is preparing a purchases budget for the next quarter. At his request, Ruben Carpenter, the manager of the sales department, forwarded him the following preliminary sales budget: Preparing an inventory purchases budget and schedule of cash payments Budgeted sales October $240,000 November $300,000 December $360,000 January$320,00" "For budgeting purposes, Mankota estimates that cost of goods sold is 75 percent of sales. The company desires to maintain an ending inventory balance equal to 20 percent of the next period’s cost of goods sold. The September ending inventory is $40,000. Mankota makes all pur-chases on account and pays 70 percent of accounts payable in the month of purchase and the remaining 30 percent in the following month. The balance of accounts payable at the end of September is $37,500.Required a. Prepare an inventory purchases budget for October, November, and December.b. Determine the amount of ending inventory Mankota will report on the end-of-quarter pro forma balance sheet.c. Prepare a schedule of cash payments for inventory for October, November, and December.d. Determine the balance in accounts payable Mankota will report on the end-of-quarter pro forma "

Monty Corp. provides security services. Selected transactions for Monty Corp. are presented below.

Post the transactions to T-accounts. (Post entries in the order of journal entries presented in the previous part. For accounts with zero balance select "Balance" from the list and enter "0" or leave it blank.) Post the transactions to T-accounts.

On October 1, 2020, Mertag Company (a U.S.-based company) receives an order from a customer in Poland to deliver goods on January 31, 2021, for a price of 1,028,000 Polish zlotys (PLN). Mertag enters into a forward contract on October 1, 2020, to sell PLN 1,028,000 in four months (on January 31, 2021). U.S. dollar–Polish zloty exchange rates are as follows:

Mertag designates the forward contract as a fair value hedge of a foreign currency firm commitment. The fair value of the firm commitment is measured by referring to changes in the forward rate, and, therefore, forward points are included in assessing hedge effectiveness. Mertag must close its books and prepare financial statements on December 31. Discounting to present value can be ignored.

1. Prepare journal entries for the foreign currency forward contract, foreign currency firm commitment, and export sale.
2. Determine the net benefit, if any, realized by Mertag from entering into the forward contract.

Raw materials purchased on account, $210,000.

Raw materials used in production, $191,000 ($152,800 direct materials and $38,200 indirect materials).

Accrued direct labor cost of $50,000 and indirect labor cost of $21,000.

Depreciation recorded on factory equipment, $104,000.

Other manufacturing overhead costs accrued during October, $130,000.

The company applies manufacturing overhead cost to production using a predetermined rate of $7 per machine-hour. A total of 76,300 machine-hours were used in October.

Jobs costing $513,000 according to their job cost sheets were completed during October and transferred to Finished Goods.

Jobs that had cost $451,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 24% above cost.

Required:

1. Prepare journal entries to record the transactions given above.

2. Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account. Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $36,000.

Board Company has a foreign subsidiary that began operations at the start of 2017 with assets of 138,000 kites (the local currency unit) and liabilities of 66,000. During this initial year of operation, the subsidiary reported a profit of 32,000 kites. It distributed two dividends, each for 5,600 kites with one dividend declared on March 1 and the other on October 1. Applicable exchange rates for 1 kite follow:

1. Assume that the kite is this subsidiary’s functional currency. What translation adjustment would Board report for the year 2017?

2. Assume that on October 1, 2017, Board entered into a forward exchange contract to hedge the net investment in this subsidiary. On that date, Board agreed to sell 260,000 kites in three months at a forward exchange rate of $0.71/1 kite. Prepare the journal entries required by this forward contract.

3. Compute the net translation adjustment for Board to report in accumulated other comprehensive income for the year 2017 under this second set of circumstances.

Board Company has a foreign subsidiary that began operations at the start of 2017 with assets of 143,000 kites (the local currency unit) and liabilities of 76,000. During this initial year of operation, the subsidiary reported a profit of 37,000 kites. It distributed two dividends, each for 6,100 kites with one dividend declared on March 1 and the other on October 1. Applicable exchange rates for 1 kite follow:

1. Assume that the kite is this subsidiary’s functional currency. What translation adjustment would Board report for the year 2017?

2. Assume that on October 1, 2017, Board entered into a forward exchange contract to hedge the net investment in this subsidiary. On that date, Board agreed to sell 160,000 kites in three months at a forward exchange rate of $0.76/1 kite. Prepare the journal entries required by this forward contract.

3. Compute the net translation adjustment for Board to report in accumulated other comprehensive income for the year 2017 under this second set of circumstances.