1.

Raw materials inventory	$ 74000		$ 58000
Work in process inventory	98000		110000
Finished goods inventory	100000		92000

During 2020, Waterway purchased $1450000 of raw materials, incurred direct labor costs of $250000, and incurred manufacturing overhead totaling $160000.
How much is total manufacturing costs incurred during 2020 for Waterway?

$1860000

$1876000

$1872000

$1864000

2. A process began the month with 2900 units in the beginning work in process inventory and ended the month with 2100 units in the ending work in process. If 22800 units were completed and transferred out of the process during the month, how many units were started into production during the month?

22000.

22800.

23600.

20700.

3. A process began the month with 2700 units in the beginning work in process inventory and ended the month with 1600 units in the ending work in process. If 21300 units were completed and transferred out of the process during the month, how many units were started into production during the month?

19700.

21300.

22400.

20200.

4. Concord Corporation's accounting records reflect the following inventories:

	Dec. 31, 2019		Dec. 31, 2020
Raw materials inventory	$ 80000		$ 64000
Work in process inventory	104000		116000
Finished goods inventory	100000		92000

During 2020, Concord purchased $1430000 of raw materials, incurred direct labor costs of $250000, and incurred manufacturing overhead totaling $160000.
Assume Concord’s cost of goods manufactured for 2020 amounted to $1844000. How much would it report as cost of goods sold for the year?

$1852000

$1944000

$1836000

$1752000

Sweet Corporation is in the dairy business. Products go through two production departments (A first, then B). Data from those departments for October 2020 are presented below.

Complete the four steps necessary to prepare a production cost report.

Department A
Department B

Beginning work in process
Beginning work in process

Number of units
1,000
200

% complete for materials
100%

% complete for transferred-in

100%

% complete for conversion
60%
30%

Total materials cost
$24,000
-0-

Total conversion cost
$30,000
$40,000

Total transferred-in costs

$15,000

Department A
Department B

Ending work in process
Ending work in process

Number of units
600
300

% complete for materials
100%

% complete for transferred-in

100%

% complete for conversion
30%
40%

Sweet Corporation started 2,600 units of product during the month in department A. Costs incurred in department A for October 2020 totalled $64,000 for material and $132,000 for conversion. Additionally, department B incurred conversion costs in October 2020 of $600,000. Department B adds no materials to the product.
Instructions

a. Journalize the transfer of goods from department A to department B during October 2020. Sweet Corporation accounts for its costs using the weighted-average method.

$226,163

b. Prepare a production cost report for department B for October 2020.

Total cost of units completed: $833,123 (Weygandt, 12/2017, pp. 159-160) Weygandt, J. J., Kimmel, P. D., Kieso, D. E., Aly, I. M. (2017). Managerial Accounting: Tools for Business Decision-Making, Canadian Edition, 5th Edition. [[VitalSource Bookshelf version]]. Retrieved from vbk://9781119403999 Always check citation for accuracy before use.

On January 1, 2020, Wildhorse Wholesalers Inc. adopted the dollar-value LIFO inventory method for income tax and external financial reporting purposes. However, Wildhorse continued to use the FIFO inventory method for internal accounting and management purposes. In applying the LIFO method, Wildhorse uses internal conversion price indexes and the multiple pools approach under which substantially identical inventory items are grouped into LIFO inventory pools. The following data were available for inventory pool no. 1, which comprises products A and B, for the 2 years following the adoption of LIFO. FIFO Basis per Records Units Unit Cost Total Cost Inventory, 1/1/20    Product A 11,400 $30 $342,000    Product B 10,260 25 256,500 $598,500 Inventory, 12/31/20    Product A 18,810 36 $677,160    Product B 10,260 26 266,760 $943,920 Inventory, 12/31/21    Product A 14,820 40 $592,800    Product B 11,400 32 364,800 $957,600

(a) Your answer is correct. Compute the internal conversion price indexes for 2020 and 2021. (Round price index to 2 decimal places, e.g. 1.62.) 2020 2021 Conversion price index Click if you would like to Show Work for this question: Open Show Work SHOW SOLUTION LINK TO TEXT Attempts: 3 of 15 used

(b) Your answer is incorrect. Try again. Compute the inventory amounts at December 31, 2020 and 2021, using the dollar-value LIFO inventory method. (Round answers to 0 decimal places, e.g. 5,620.) 2020 2021 Inventory $ $

Question 5 On January 1, 2020, Splish Company purchased $350,000, 8% bonds of Aguirre Co. for $322,973. The bonds were purchased to yield 10% interest. Interest is payable semiannually on July 1 and January 1. The bonds mature on January 1, 2025. Splish Company uses the effective-interest method to amortize discount or premium. On January 1, 2022, Splish Company sold the bonds for $324,733 after receiving interest to meet its liquidity needs.

Prepare the journal entry to record the purchase of bonds on January 1. Assume that the bonds are classified as available-for-sale. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1, 2020 SHOW LIST OF ACCOUNTS LINK TO TEXT

Prepare the amortization schedule for the bonds. (Round answers to 0 decimal places, e.g. 1,250.)

(c)		Prepare the journal entries to record the semiannual interest on (1) July 1, 2020, and (2) December 31, 2020.
(d)		If the fair value of Aguirre bonds is $326,733 on December 31, 2021, prepare the necessary adjusting entry. (Assume the fair value adjustment balance on December 31, 2020, is a debit of $3,212.)
(e)		Prepare the journal entry to record the sale of the bonds on January 1, 2022.

(Round answers to 0 decimal places, e.g. 2,500. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Lock & Key Inc. began operations on January 1, 2019. Its post-closing trial balance at December 31, 2019 and 2020, is shown below along with some other information. Lock & Key Inc. Income Statement For Year Ended December 31, 2020 (000s) Revenues: Sales $ 3,260 Cost of goods sold 2,890 Gross Profit 370 Expenses: Other expenses $ 720 Depreciation expense 240 Total expenses 960 Loss $ 590 Lock & Key Inc. Post-Closing Trial Balance (000s) December 31 Account 2020 2019 Cash $ 1,560 $ 1,200 Receivables 2,040 1,380 Merchandise inventory 1,980 2,220 Property, plant and equipment 3,660 3,900 Accumulated depreciation 1,380 1,320 Accounts payable 1,380 1,020 Accrued liabilities 240 360 Bonds payable 1,140 1,740 Common shares 3,024 1,570 Retained earnings 2,076 2,690 Other information regarding Lock & Key Inc. and its activities during 2020: Assume all accounts have normal balances. Cash dividends were declared and paid during the year. Equipment was sold for cash equal to its book value. Other information: All accounts payable balances result from merchandise purchases. All sales are credit sales. All credits to accounts receivable are receipts from customers. All debits to accounts payable result from payments for merchandise. All other expenses are cash expenses. Required: Prepare a statement of cash flows for 2020 using the direct method to report cash inflows and outflows from operating activities. cash flow statement with direct method.

Flounder Limited, which follows IFRS, has adopted the policy of classifying interest paid as operating activities and dividends paid as financing activities. Condensed financial data for 2020 and 2019 follow (in thousands):

FLOUNDER LIMITED Comparative Statement of Financial Position December 31
			2020			2019
Cash			$2,010			$1,150
FV-NI investments			1,300			1,420
Accounts receivable			1,845			1,350
Inventory			1,660			2,030
Plant assets			2,005			1,790
Accumulated depreciation			(1,200	)		(1,170	)
			$7,620			$6,570
Accounts payable			$1,295			$950
Accrued liabilities			290			340
Mortgage payable			1,370			1,590
Common shares			2,080			1,790
Retained earnings			2,585			1,900
			$7,620			$6,570
FLOUNDER LIMITED Income Statement Year Ended December 31, 2020
Sales						$6,885
Cost of goods sold						4,700
	Gross margin					2,185
Administrative expenses						910
Income from operations						1,275
Other expenses and gains
	Interest expense		$(20	)
	Gain on disposal of FV-NI investments		80			60
Income before tax						1,335
Income tax expense						405
Net income						$930

Additional information: During the year, $70 of common shares were issued in exchange for plant assets. No plant assets were sold in 2020. The FV-NI investments’ carrying amount and market value were the same at December 31, 2020.

Prepare a statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000). Enter amounts in thousands.)

My question is how do you calculate : Proceeds from the the sale of FV-NI Investments ?

On November 10, 2020, Singh Electronics began to buy and resell scanners for $64 each. Singh uses the perpetual system to account for inventories. The scanners are covered under a warranty that requires the company to replace any non-working scanner within 90 days. When a scanner is returned, the company simply throws it away and mails a new one from inventory to the customer. The company’s cost for a new scanner is only $44. Singh estimates warranty costs based on 20% of the number of units sold. The following transactions occurred in 2020 and 2021 (ignore GST and PST):

	2020
Nov.	15	Sold 3,500 scanners for $224,000 cash.
	30	Recognized warranty expense for November with an adjusting entry.
Dec.	8	Replaced 240 scanners that were returned under the warranty.
	15	Sold 6,400 scanners.
	29	Replaced 58 scanners that were returned under the warranty.
	31	Recognized warranty expense for December with an adjusting entry.
	2021
Jan.	14	Sold 320 scanners.
	20	Replaced 80 scanners that were returned under the warranty.
	31	Recognized warranty expense for January with an adjusting entry.

Required:
1. How much warranty expense should be reported for November and December 2020?

2. How much warranty expense should be reported for January 2021? (Round your intermediate calculations and final answer to the nearest whole number.)

3. What is the balance of the estimated warranty liability as of December 31, 2020?

4.What is the balance of the estimated warranty liability as of January 31, 2021?

. Prepare journal entries to record ALL transactions and year-end adjustments (ignore sales taxes). (Round intermediate calculations and final answer to the nearest whole number.)

Kingbird Corp., which uses IFRS, signs non-renewable, non-cancellable lease agreement to lease robotic equipment from Xiu Inc. The following information concerns the lease agreement.

Inception date		January 1, 2020
Lease term		5 years
Fair value of equipment Jan. 1, 2020		$120,000
Economic life of leased equipment		7 years
Annual rental payments starting Jan. 1, 2020		$21,511
Option to purchase at the end of the term		none
Depreciation method		Straight-line
Residual value		none
Kingbird’s incremental borrowing rate		9%

Using (1) factor tables, (2) a financial calculator, or (3) Excel functions, calculate the amount of the right-of-use asset and lease liability. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275.) The amount of the right-of-use asset $ Prepare the initial entry to reflect the signing of the lease agreement. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1, 2020

Prepare an amortization schedule for the term of the lease to be used by Kingbird. Use Excel. (Round answers to 0 decimal places, e.g. 5,275.) Kingbird Corp. Lease Amortization Schedule (Lessee) Date Annual Payment Interest on Unpaid Liability Reduction of Lease Liability Balance of Lease Liability $ January 1, 2020 $ $ January 1, 2021 $ January 1, 2022 January 1, 2023 January 1, 2024

Pro forma income statement The marketing department of Metroline Manufacturing estimates that its sales in 2020 will be $ 1.64 million. Interest expense is expected to remain unchanged at $ 38 comma 000 , and the firm plans to pay $ 74 comma 000 in cash dividends during 2020. Metroline Manufacturing's income statement for the year ended December 31, 2019 , is given LOADING... , along with a breakdown of the firm's cost of goods sold and operating expenses into their fixed and variable components. a. Use the percent-of-sales method to prepare a pro forma income statement for the year ended December 31, 2020. b. Use fixed and variable cost data to develop a pro forma income statement for the year ended December 31, 2020. c. Compare and contrast the statements developed in parts a. and b. Which statement probably provides the better estimate of 2020 income? Explain why.

etroline Manufacturing Income Statement for the Year Ended December 31, 20192019
Sales revenue	$1,396,000
Less: Cost of goods sold	917,000
Gross profits	$479,000
Less: Operating expenses	110,000
Operating profits	$369,000
Less: Interest expense	38,000
Net profits before taxes	$331,000
Less: Taxes (rate equals 40 %rate=40% )	132,400
Net profits after taxes	$198,600
Less: Cash dividends	65,000
To retained earnings	$133,600

Metroline Manufacturing Breakdown of Costs and Expenses into Fixed and Variable Components for the Year Ended December 31, 20192019
Cost of goods sold
Fixed cost	$216,000
Variable cost	701,000
Total cost	$917,000
Operating expenses
Fixed expenses	$35,000
Variable expenses	75,000
Total expenses	$110,000