The following is six months of data on the cost and production volume to manufacture crates of skittles. In order to better predict costs, the manager is trying to understand the relationship between production volume and cost. Use the hi-lo method to determine the cost equation. Round as needed to the closest penny.  (Please report the cost equation in y=mx+b format).

Is it possible to reduce the cost of healthcare so that everyone can have access to affordable healthcare services?

Do you feel that the Patient Protection and Affordable Care Act is a good step toward reducing healthcare costs in our nation? Why or why not?

Hirsch Company acquired equipment at the beginning of 2017 at a cost of $128,000. The equipment has a five-year life with no expected salvage value and is depreciated on a straight-line basis. At December 31, 2017, Hirsch compiled the following information related to this equipment:

Assume that a U.S.–based company is issuing securities to foreign investors who require financial statements prepared in accordance with IFRS. Thus, adjustments to convert from U.S. GAAP to IFRS must be made. Ignore income taxes.

Required:

1.Prepare journal entries for this equipment for the years ending December 31, 2017, and December 31, 2018, under (1) U.S. GAAP and (2) IFRS.

- Record the entry for the purchase of equipment as per U.S. GAAP.

- Record the entry for the expense on depreciation of equipment as per U.S. GAAP

- Record the entry for the purchase of equipment as per IFRS.

- Record the entry for the expense on depreciation of equipment as per IFRS.

- Record the entry for the loss on impairment of equipment as per IFRS.

- Record the entry for the loss on impairment of equipment as per U.S. GAAP.

- Record the entry for the expense on depreciation of equipment as per U.S. GAAP.

- Record the entry for the expense on depreciation of equipment as per IFRS.

2. Prepare the entry(ies) that Hirsch would make on the December 31, 2017, and December 31, 2018, conversion worksheets to convert U.S. GAAP balances to IFRS. Ignore the possibility of any additional impairment at the end of 2018.

- Record the entry for the loss on impairment of equipment due to conversion from U.S. GAAP to IFRS.

- Record the entry for the loss on impairment of equipment due to conversion from U.S. GAAP to IFRS.

- Record the entry for reversing additional depreciation already recognized due to conversion from U.S. GAAP to IFRS

A company is considering replacement of manufacturing equipment with computer controlled equipment, at a cost of $500,000, replacing equipment with a scrap value of $50,000. This will reduce defect costs by $150,000 a year. At the end of 7 years, the equipment will be replaced and will have a scrap value of $100,000. The interest charges for financing the purchase will be $25,000 a year. The new system will be housed in a building that is currently unused, with an overhead value of $10,000 a year. Utility costs will be unchanged. Machine operators will require training of $1000 each for 4 workers. These workers are scheduled for a raise of $3000 each. Because the new equipment technology is well-established for its intended use, the risk premium for the project is considered to be 2 percentage points less than the company’s WACC of 8%.                 

1.1 List the investment facts for the project:

NOTE: List all of the financial details associated with the project and designate which should be included (and which ignored) in calculating the project’s cash flows and its cost of capital.

Life of the project: 7 years

Interest rate for the project:  6% (8-2) (cost of capital to the firm adjusted for project risk)

PVIF for the project:     0.666

PVIFA for the project:     5.582

A. Initial investment: (include all cash flows - positive and negative - that occur at the beginning of the project)

B. Future cash flows: (negative and positive)

C. Lump sum: (one time)

D. Annuity: (repeated annually)

E. Costs that you will ignore: (sunk cost or otherwise)

1.2. A. Using the relevant net cash flows and cost of capital from A above, calculate the NPV for the project. (use the NPV formula and the PV tables)

Please Answer:

1.1 A.

1.1 B.

1.1 C.

1.1 D

1.1 E.

1.2 A.

Fleet Sports purchased manufacturing equipment with a cost of $200,000 at the beginning of 2016. The equipment has an estimated life of 4 years or 100,000 shoes (units of product). The estimated residual value is $20,000. During 2016, 36,000 shoes (units of product) were produced with this machinery. Determine the following:

What is the depreciation expense per unit of production using the units-of-production depreciation?

What is the total depreciation expense at December 31, 2016, using units-of-production depreciation?

What is depreciation expense for the equipment at the end of 2016 using double-declining balance depreciation?

What is depreciation expense for the equipment at the end of 2018 using double-declining balance depreciation?

Assume Fleet Sports depreciated the manufacturing equipment using the straight-line method. Prepare a depreciation table as discussed in course lecture, with column headings of Year, Depreciation Expense, Accumulated Depreciation, and Book Value.

1. You are recently appointed as a centralized “Cost Control Analyst” for one of the bank in Toronto. Head of Banking operations in Toronto Mr. Horton has asked you to analyse the cost of basic stationary as Stationary in different regions of the bank seems to be one of the highest cost. He wants you to come up with your statistical analysis with two pager report. Use Central tendencies, Standard deviation and Regression analysis techniques along with graphical representation. (30 Marks

"A firm is considering purchasing a computer system.
-Cost of system is $188,000. The firm will pay for the computer system in year 0.
-Project life: 4 years
-Salvage value in year 0 (constant) dollars: $24,000
-Depreciation method: five-years MACRS
-Marginal income-tax rate = 40% (remains constant over time)
-Annual revenue = $141,000 (year-0 constant dollars)
-Annual expenses (not including depreciation) = $75,000 (year-0 constant dollars)
If the general inflation rate is 2.1% during the project period (which will affect all revenues, expenses, and the salvage value but not depreciation), determine the INFLATION-FREE IRR' of the computer system. Enter your answer as a percentage between 0 and 100."

1. Cost of Units Completed and in Process

   The charges to Work in Process—Assembly Department for a period, together with information concerning production, are as follows. All direct materials are placed in process at the beginning of production.

   Work in Process—Assembly Department
   Bal., 3,000 units, 75% completed	9,450	To Finished Goods, 69,000 units	?
   Direct materials, 71,000 units @ $1.8	127,800
   Direct labor	93,700
   Factory overhead	36,450
   Bal., ? units, 35% completed	?

   Cost per equivalent units of $1.80 for Direct Materials and $1.90 for Conversion Costs.

   a. Based on the above data, determine the different costs listed below.

   If required, round your interim calculations to two decimal places.

   1. Cost of beginning work in process inventory completed this period	$
   2. Cost of units transferred to finished goods during the period	$
   3. Cost of ending work in process inventory	$
   4. Cost per unit of the completed beginning work in process inventory (Rounded to the nearest cent.)	$

   b. Did the production costs change from the preceding period?
   yes or no

   c. Assuming that the direct materials cost per unit did not change from the preceding period, did the conversion costs per equivalent unit increase, decrease, or remain the same for the current period? decrease increase or remain the same

A new operating system for an existing machine is expected to cost $590,000 and have a useful life of six years. The system yields an incremental after-tax income of $160,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $21,800. A machine costs $450,000, has a $20,000 salvage value, is expected to last eight years, and will generate an after-tax income of $64,000 per year after straight-line depreciation.

Assume the company requires a 12% rate of return on its investments. Compute the net present value of each potential investment. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)

Complete this question by entering your answers in the tabs below.

• Required A
• Required B

A new operating system for an existing machine is expected to cost $590,000 and have a useful life of six years. The system yields an incremental after-tax income of $160,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $21,800. (Round your answers to the nearest whole dollar.)

A machine costs $450,000, has a $20,000 salvage value, is expected to last eight years, and will generate an after-tax income of $64,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar.)