Suppose that the annual demand for a componet is aproximately 60,000 units. The company ordes the component from a supplier who has offered the following quantity discount shedule.

order Quantity Price per unit

0-999 $30

1,000-1,999 $29

2,000-3,999                                             $28

4,000-or more                                           $27

If the company's carrying charges is 15 percent of the item's price and the cost per order is $150, determine yhe order quantity that would minimize the total related inventory cost for this component.

The March 31, 2019 balance sheet of Kalakaua Corporation had Accounts Receivable of $525,000 and a credit balance in Allowance for Doubtful Accounts of $33,000. During the year ended March 31, 2020, the following transactions occurred: sales on account $1,550,000; sales returns & allowances, $120,000; collections from customers, $1,350,000; accounts written off $41,000; previously written off accounts of $5,000 were collected.

REQUIRED:

1.Using the above information, what is the balance of Accounts Receivable at March 31, 2020?

2.Suppose that it is the company policy to use the percentage of sales basis to estimate bad debts expense and anticipates 3% of net sales to be uncollectible, what is the adjusting entry at March 31, 2020? (Show calculations.)

3.Ignore the entry made in b) above.

Assume that it is company policy to use the aging of receivables basis to estimate bad debt expense. It determines that uncollectible accounts are expected to be $38,400. What is the adjusting entry at March 31, 2020? Assume the March 31, 2020 balance of Accounts Receivable is $575,000 and Allowance for Doubtful Accounts has an existing balance of $3,000 (cr). (Show calculations)

Walsh Company manufactures and sells one product. The following information pertains to each of the company’s first two years of operations: Variable costs per unit: Manufacturing: Direct materials $ 27 Direct labor $ 10 Variable manufacturing overhead $ 2 Variable selling and administrative $ 1 Fixed costs per year: Fixed manufacturing overhead $ 240,000 Fixed selling and administrative expenses $ 80,000 During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The selling price of the company’s product is $51 per unit. Required: 1. Assume the company uses variable costing: a. Compute the unit product cost for year 1 and year 2. b. Prepare an income statement for year 1 and year 2.

#9

Lenci Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During May, the company budgeted for 5,100 units, but its actual level of activity was 5,050 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for May:

Data used in budgeting:

Actual results for May:

The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for May would be closest to:

Garrison 16e Rechecks 2018-06-07

$2,750 F

$3,595 F

$3,595 U

$2,750 U

#10

Neubert Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During December, the company budgeted for 5,300 units, but its actual level of activity was 5,340 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for December:

Data used in budgeting:

Actual results for December:

The direct labor in the planning budget for December would be closest to:

Garrison 16e Rechecks 2018-06-07

$18,690

$18,550

$17,845

$17,980

#16

Pippin Inc. has provided the following data concerning one of the products in its standard cost system. Variable manufacturing overhead is applied to products on the basis of direct labor-hours.

The company has reported the following actual results for the product for June:

The labor rate variance for the month is closest to:

$1,020 U

$920 U

$1,020 F

$920 F

Catena’s Marketing Company has the following adjusted trial balance at December 31, 2021. No dividends were declared. However, 470 shares issued at the end of the year for $4,700 are included below:

Prepare a classified statement of financial position at December 31, 2021.

General Lighting During the first quarter of the current year, the company sold 4,000 batteries on credit for $150 each plus state sales tax of 6%. Refer to General Lighting. The price of each battery includes a $1.95 federal excise tax. Any taxes collected must be paid to the appropriate governmental units at the end of the quarter. Which of the following is the proper journal entry to record for the sale of the batteries?

a. Accounts Receivable 636,000, Sales Tax Expense 36,000, Excise Tax Expense 7,800, Sales Revenue 643,800

b. Accounts Receivable 636,000, Sales Revenue 592,200, Sales Tax Payable 36,000, Federal Excise Tax Payable 7,800

c. Accounts Receivable 636,000, Excise Tax Expense 7,800, Sales Revenue 607,800, Sales Tax Payable 36,000

d. Accounts Receivable 643,800, Sales Revenue 600,000, Sales Tax Payable 36,000, Federal Excise Tax Payable 7,800

Stolte Trimble Corporation (STC) uses a perpetual inventory system. At the beginning of May, STC had 30 units of inventory, of which 10 units were purchased in March for $60 per unit and 20 units were purchased in April for $66 per unit. STC uses its perpetual inventory system to account for the following transactions.

Assume Stolte Trimble Corporation (STC) uses weighted average cost in its perpetual inventory system. Prepare the journal entry for each transaction.

JE -

1-Record the sale of units to customers on credit terms n/60.

2-Record the cost of units sold to customers on credit terms n/60.

3-Record the purchase of units on credit terms n/45.

4-Record the sale of units to customers on credit terms n/60.

5-Record the cost of units sold to customers on credit terms n/60.

5

An airline is planning on making changes to its Frequent Flyer program. Before implementing them, they want to know what their customers think about the changes. They plan to sample a portion of their customers who are members of their Frequent Flyer program. They have two lists:

• One sorted by what level of frequent flyer the customer is: Gold (15 or more flights a year; about 15% of customers), Silver (5 to 14 flights a year; about 25% of customers); Bronze (less than 5 flights a year; about 60% of customers)

• One sorted by city the customer normally flys out of: There are 15 Canadian “hubs” or cities on this list

1. (a) Which of the two lists would you use if you plan to use Stratified Sampling and why? Then give 1 or 2 lines explaining how you would use the list to get your sample of customers. (1 + 1 = 2 marks)

2. (b) Which of the two lists would you use if you plan to use Cluster Sampling and why? Give 1 line explaining how you would use the list to get your sample if you use “single stage” clustering. Then give 1 line explaining how you would use the list if you use “multi - stage” clustering. (1 + 1 + 1 = 3 marks)

Question

The management of a busy petrol station is concerned that customers are being lost because of long waiting times sometimes required at their petrol pump. Over a two weeks period a careful study has been taken of the arrival of cars and the length of time taken to serve customers at the petrol station. The tables below show the arrival rates and the service time distribution:

• Assuming that the petrol station has only one pump and only one member of staff attend the customers, simulate the arrival of the first 10 customers and calculate the following:

(a)     Average inter-arrival time.

2. Average service time.
3. Average waiting time.
4. Average queue length.

Use the random numbers given below for the simulation.

89,34,07,65,37,11,29,80,28,34,08,14,75,92,01,48,21,83,63,91.