Question 1                                                                                                           (Total: 18 marks)

The following information was taken from the accounting records of Dunbar Mifflin Company in 2018.

                                                                                             Beginning of 2018             Ending of 2018

Direct materials inventory                                         135,000                                 83,000

Work-in-process inventory                                       185,000                                 154,000

Finished-goods inventory                                          255,000                                 216,000

Purchases of direct materials                                                                                   270,000

Direct manufacturing labor                                                                                       225,000

Indirect manufacturing labor                                                                                    103,000

Plant insurance                                                                                                              11,000

Depreciation-plant, building, and equipment                                                    48,000

Plant utilities                                                                                                                   29,500

Repairs and maintenance-plant                                                                              13,500

Equipment leasing costs                                                                                             66,800

Marketing, distribution, and customer-service costs                                      129,500

General and administrative costs                                                                           72,500

Required:

1. Prepare a schedule of cost of goods manufactured.

Natural Candle Sales Company (NCS) began 2018 with cash of $75,000, inventory of $7,200 (400 candles that cost $18 each), $3,000 of common stock, and $2,500 of retained earnings. The following events occurred during 2018.

1. NCS purchased additional inventory twice during 2018. The first purchase consisted of 1600 candles that cost $20 each, and the second consisted of 2,400 candles that cost $24 each. The purchases were on account.

2. The company sold 4080 candles for cash at a selling price of $40 each.

Required

Determine the ending inventory and cost of goods sold using the three different cost flow assumptions: FIFO, LIFO, and Weighted Average.

Below are some data from the land of milk and honey

1. Compute nominal GDP, real GDP, and the GDP deflator for each year, using 2016 as the base year.
2. Compute the percentage change in nominal GDP, real GDP and the GDP deflator in 2017 and 2018 from the preceding year. For each year, identify the variable (“price” or “quantity”) that does not change. Explain why your answer makes sense.
3. Did economic well-being increase more in 2017 or 2018? Explain.

aaaaa bonded company reported the following on its 12/31/2017 financial statements:

Accounts Receivable (net of a $16,000 Allowance) of $104,000

Consider that during 2018 Layer Cake accrued bad debt at 3% of credit sales, reported actual customer write offs of $21,000, credit sales of $800,000, and cash collections from customers as payment on account of $789,000. Additionally, the controller determined (from a detailed 12/31 aging analysis) that it would be appropriate to report the receivables on the 12/31/2018 balance sheet at a net realizable value of $88,000. What value will Layer Cake report as bad debt expense for the twelve months ended at 12/31/2018?

Vibrant Company had $930,000 of sales in each of three consecutive years 2016–2018, and it purchased merchandise costing $515,000 in each of those years. It also maintained a $230,000 physical inventory from the beginning to the end of that three-year period. In accounting for inventory, it made an error at the end of year 2016 that caused its year-end 2016 inventory to appear on its statements as $210,000 rather than the correct $230,000.

Required:
1. Determine the correct amount of the company’s gross profit in each of the years 2016–2018.
2. Prepare comparative income statements to show the effect of this error on the company's cost of goods sold and gross profit for each of the years 2016?2018.

January 1, 2018: Nexxon corporation issued 20 year, 9% bonds with a face value of $2,000,0000. the bonds were sold to yield 10%. Interest is payable semi-annually on january 1 and July 1. Effective rate amortization is to be used.

1. what is the issue price of the bonds?

2. Using EXCEL, prepare an amortization table for the entire bond term.

3. Record the bond issuance on 1/1/18

4. assume the company prepares financial statements semi-annually on June 30 and Decemeber 31. Prepare the appropriate adjusting entries for June 30, 2018 and December 31, 2018 for interest and for amortization of the discount or premium.

6/30/18

12/31/18

The income statement of Packer Inc. for the year ended December 31, 2018, reported the following condensed information:
Revenue from fees.....................................   $585,000
Operating expenses...................................     340,000
Income from operations..............................    245,000
Income tax expense...................................     61,250
Net income.................................................   $183,750

Packer's statement of financial position contained the following comparative data at December 31:
2018 2017
Accounts receivable...................................               $52,500          $45,000
Accounts payable.......................................                 34,000           41,000
Income taxes payable.................................                 5,500             3,000

The corporation has no depreciable assets. Accounts payable pertain to operating expenses.

Instructions:
Using the direct method, prepare the operating activities of the statement of cash flows for the year ended December 31, 2018.

The business faculty of a public university recorded data on the number of students enrolled in the different study majors for the years 2018 and 2019. These data are useful for the faculty for their decision making process with regard to future planning. The data are stored in BUSSTUDYMAJOR worksheet in the .xls file attached.

1. Use an appropriate graphical technique or chart to compare the number of enrolment in 2018 and 2019 of the different study major. Display the chart.  

BUSSTUDYMAJOR worksheet details:

The business faculty of a public university recorded data on the number of students enrolled in the different study majors for the years 2018 and 2019. These data are useful for the faculty for their decision making process with regard to future planning. The data are stored in BUSSTUDYMAJOR worksheet in the .xls file attached.

1. Use an appropriate graphical technique or chart to display the percentage value of the number of enrolment of the different study major in 2018. Display the chart.

BUSSTUDYMAJOR worksheet details: