Luker Corporation uses a process costing system. The company had $172,500 of beginning Finished Goods Inventory on October 1. It transferred in $849,000 of units completed during the period. The ending Finished Goods Inventory balance on October 31 was $170,200. The entry to account for the cost of goods sold in October is:

Multiple Choice

• Debit Cost of Goods Sold $849,000; credit Finished Goods Inventory $849,000.

• Debit Cost of Goods Sold $851,300; credit Work in Process Inventory $851,300.

• Debit Finished Goods Inventory $849,000; credit Work in Process Inventory $849,000.

• Debit Finished Goods Inventory $170,200; credit Cost of Goods Sold $170,200.

• Debit Cost of Goods Sold $851,300; credit Finished Goods Inventory $851,300.

Direct Materials Purchases Budget: Direct Labor Budget

Crescent Company produces stuffed toy animals; one of these is “Arabeau the Cow.” Each Arabeau takes 0.20 yard of fabric (white with irregular black splotches) and 8 ounces of polyfiberfill. Fabric costs $3.40 per yard and polyfiberfill is $0.05 per ounce. Crescent has budgeted production of Arabeaus for the next four months as follows:

    Units
October   44,000
November   90,000
December   50,000
January   40,000
Inventory policy requires that sufficient fabric be in ending monthly inventory to satisfy 20 percent of the following month’s production needs and sufficient polyfiberfill be in inventory to satisfy 40 percent of the following month’s production needs. Inventory of fabric and polyfiberfill at the beginning of October equals exactly the amount needed to satisfy the inventory policy.

Each Arabeau produced requires (on average) 0.10 direct labor hour. The average cost of direct labor is $15 per hour.

Required:

1. Prepare a direct materials purchases budget of fabric for the last quarter of the year showing purchases in units and in dollars for each month and for the quarter in total. Round your answers to the nearest cent, if required.

Crescent Company
Direct Materials Purchases Budget for Fabric
For the Fourth Quarter
October   November   December   Total
Units produced   fill in the blank 2a228b0e203406b_1
fill in the blank 2a228b0e203406b_2
fill in the blank 2a228b0e203406b_3
fill in the blank 2a228b0e203406b_4
DM per unit (yd.)   fill in the blank 2a228b0e203406b_5
fill in the blank 2a228b0e203406b_6
fill in the blank 2a228b0e203406b_7
fill in the blank 2a228b0e203406b_8
Production needs   fill in the blank 2a228b0e203406b_9
fill in the blank 2a228b0e203406b_10
fill in the blank 2a228b0e203406b_11
fill in the blank 2a228b0e203406b_12
Desired ending inventory (yd.)   fill in the blank 2a228b0e203406b_13
fill in the blank 2a228b0e203406b_14
fill in the blank 2a228b0e203406b_15
fill in the blank 2a228b0e203406b_16
Total needed   fill in the blank 2a228b0e203406b_17
fill in the blank 2a228b0e203406b_18
fill in the blank 2a228b0e203406b_19
fill in the blank 2a228b0e203406b_20
Less: Beginning inventory   fill in the blank 2a228b0e203406b_21
fill in the blank 2a228b0e203406b_22
fill in the blank 2a228b0e203406b_23
fill in the blank 2a228b0e203406b_24
DM to be purchased (yd.)   fill in the blank 2a228b0e203406b_25
fill in the blank 2a228b0e203406b_26
fill in the blank 2a228b0e203406b_27
fill in the blank 2a228b0e203406b_28
Cost per yard   $fill in the blank 2a228b0e203406b_29
$fill in the blank 2a228b0e203406b_30
$fill in the blank 2a228b0e203406b_31
$fill in the blank 2a228b0e203406b_32
Total purchase cost   $fill in the blank 2a228b0e203406b_33
$fill in the blank 2a228b0e203406b_34
$fill in the blank 2a228b0e203406b_35
$fill in the blank 2a228b0e203406b_36
2. Prepare a direct materials purchases budget of polyfiberfill for the last quarter of the year showing purchases in units and in dollars for each month and for the quarter in total. Round your answers to the nearest cent, if required.

Crescent Company
Direct Materials Purchases Budget for Polyfiberfill
For the Fourth Quarter
October   November   December   Total
Units produced   fill in the blank 5a60cffb1fdd00c_1
fill in the blank 5a60cffb1fdd00c_2
fill in the blank 5a60cffb1fdd00c_3
fill in the blank 5a60cffb1fdd00c_4
DM per unit (oz.)   fill in the blank 5a60cffb1fdd00c_5
fill in the blank 5a60cffb1fdd00c_6
fill in the blank 5a60cffb1fdd00c_7
fill in the blank 5a60cffb1fdd00c_8
Production needs   fill in the blank 5a60cffb1fdd00c_9
fill in the blank 5a60cffb1fdd00c_10
fill in the blank 5a60cffb1fdd00c_11
fill in the blank 5a60cffb1fdd00c_12
Desired ending inventory (oz.)   fill in the blank 5a60cffb1fdd00c_13
fill in the blank 5a60cffb1fdd00c_14
fill in the blank 5a60cffb1fdd00c_15
fill in the blank 5a60cffb1fdd00c_16
Total needed   fill in the blank 5a60cffb1fdd00c_17
fill in the blank 5a60cffb1fdd00c_18
fill in the blank 5a60cffb1fdd00c_19
fill in the blank 5a60cffb1fdd00c_20
Less: Beginning inventory   fill in the blank 5a60cffb1fdd00c_21
fill in the blank 5a60cffb1fdd00c_22
fill in the blank 5a60cffb1fdd00c_23
fill in the blank 5a60cffb1fdd00c_24
DM to be purchased (oz.)   fill in the blank 5a60cffb1fdd00c_25
fill in the blank 5a60cffb1fdd00c_26
fill in the blank 5a60cffb1fdd00c_27
fill in the blank 5a60cffb1fdd00c_28
Cost per ounce   $fill in the blank 5a60cffb1fdd00c_29
$fill in the blank 5a60cffb1fdd00c_30
$fill in the blank 5a60cffb1fdd00c_31
$fill in the blank 5a60cffb1fdd00c_32
Total purchase cost   $fill in the blank 5a60cffb1fdd00c_33
$fill in the blank 5a60cffb1fdd00c_34
$fill in the blank 5a60cffb1fdd00c_35
$fill in the blank 5a60cffb1fdd00c_36
3. Prepare a direct labor budget for the last quarter of the year showing the hours needed and the direct labor cost for each month and for the quarter in total. Round your answers to the nearest cent, if required.

Crescent Company
Direct Labor Budget
For the Fourth Quarter
October   November   December   Total
Units produced   fill in the blank 52ceb501bfb3ff0_1
fill in the blank 52ceb501bfb3ff0_2
fill in the blank 52ceb501bfb3ff0_3
fill in the blank 52ceb501bfb3ff0_4
Direct labor time per unit (hours)   fill in the blank 52ceb501bfb3ff0_5
fill in the blank 52ceb501bfb3ff0_6
fill in the blank 52ceb501bfb3ff0_7
fill in the blank 52ceb501bfb3ff0_8
Direct labor hours needed   fill in the blank 52ceb501bfb3ff0_9
fill in the blank 52ceb501bfb3ff0_10
fill in the blank 52ceb501bfb3ff0_11
fill in the blank 52ceb501bfb3ff0_12
Cost per direct labor hour   $fill in the blank 52ceb501bfb3ff0_13
$fill in the blank 52ceb501bfb3ff0_14
$fill in the blank 52ceb501bfb3ff0_15
$fill in the blank 52ceb501bfb3ff0_16
Total direct labor cost   $fill in the blank 52ceb501bfb3ff0_17
$fill in the blank 52ceb501bfb3ff0_18
$fill in the blank 52ceb501bfb3ff0_19
$fill in the blank 52ceb501bfb3ff0_20

E7-1.   (Determining Cash Balance)

(LO 1) The controller for Clint Eastwood Co. is attempting to determine the amount of cash to be reported on its December 31, 2017, balance sheet. The following information is provided.

1. Commercial savings account of $600,000 and a commercial checking account balance of $900,000 are held at First National Bank of Yojimbo.

2. Money market fund account held at Volonte Co. (a mutual fund organization) permits Eastwood to write checks on this balance, $5,000,000.

3. Travel advances of $180,000 for executive travel for the first quarter of next year (employee to reimburse through salary reduction).

4. A separate cash fund in the amount of $1,500,000 is restricted for the retirement of long-term debt.

5. Petty cash fund of $1,000.

6. An I.O.U. from Marianne Koch, a company customer, in the amount of $190,000.

7. A bank overdraft of $110,000 has occurred at one of the banks the company uses to deposit its cash receipts. At the present time, the company has no deposits at this bank.

8. The company has two certificates of deposit, each totaling $500,000. These CDs have a maturity of 120 days.

9. Eastwood has received a check that is dated January 12, 2018, in the amount of $125,000.

10. Eastwood has agreed to maintain a cash balance of $500,000 at all times at First National Bank of Yojimbo to ensure future credit availability.

11. Eastwood has purchased $2,100,000 of commercial paper of Sergio Leone Co. which is due in 60 days.

12. Currency and coin on hand amounted to $7,700.

Instructions

(a)  Compute the amount of cash to be reported on Eastwood Co.'s balance sheet at December 31, 2017.

(b)  Indicate the proper reporting for items that are not reported as cash on the December 31, 2017, balance sheet.

*PLEASE PROVIDE ALL SOLUTIONS USING MICROSOFT EXCEL WITH ANY RELEVANT FORMULAS, thank you!*

I have provided the answers to the questions for reference, I just need to know how to get to them.

Samantha is going to retire in 20 years. In order to live comfortably, she thinks she will need to withdraw $10,000 every month during retirement. These monthly withdrawals will be made at the end of each month during retirement. Samantha believes she will live for 35 years after she retires. During retirement Samantha will earn 4% compounded annually.

Samantha wishes to set up a scholarship at Ryerson University. The scholarship will make annual payments to one Ryerson student. The first payment from the scholarship will be made 3 years after Samantha retires. Payments will then be made every year after that in perpetuity. The first payment from the scholarship will be for $30,000. The payments will increase by 2% per year.

Samantha has set up retirement savings account. The account earns 8% compounded quarterly. There is $15,000 in the account today.

If necessary Samantha has decided to set up a new savings account. The new account earns 6% compounded annually. Samantha will make quarterly payments into the account until she retires. The payments will be made at the end of each period.

a) How much money does she need when she retires?

Answer: $3,667,359.28

b) How much money will she have in her retirement savings account when she retires?

Answer: $73,131.59

c) What will be the amount of the quarterly payments to the new savings account that is needed to finance the shortfall?

Answer: $23,895.74

d) Samantha is prepared to increase her quarterly payments by 1% each quarter. Now what will be the amount of her first quarterly payment?

Answer: $16,961.35

Enter any number in the edit fields and then click Check Answer.

hudson Partners provides management consulting services to government and corporate clients. has two support departments—administrative services​ (AS) and information systems ​(IS)—and two operating departments—government consulting​ (GOVT) and corporate consulting​ (CORP). For the first quarter of 2017​,

Hudson's cost records indicate the​ following:

Requirement 1a. Allocate the two support​ departments' costs to the two operating departments using the direct method. ​(Do not round intermediary calculations and round your final answers to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs. Enter a​ "0" for any zero​ balances.)

Enter any number in the edit fields and then click Check Answer.

.requirments

-Allocate the two support​ departments' costs to the two operating departments using the following​ methods:

Direct method

​Step-down method​ (Allocate AS​ first)

​Step-down method​ (Allocate IS​ first)

-Compare and explain differences in the​ support-department costs allocated to each operating department.

3.What approaches might be used to decide the sequence in which to allocate support departments when using the​ step-down method?

A hotel wanted to develop a new system for delivering room service breakfasts. In the current system, an order form is left on the bed in each room. If the customer wishes to receive a room service breakfast, he or she places the order form on the doorknob before 11p.m. The current system requires customers to select a 15-minute interval for desired delivery time (6:30~6:45a.m., 6:45~7:00a.m., etc.). The new system is designed to allow the customer to request a specific delivery time. The hotel wants to measure the difference (in min.) between the actual delivery time and the requested delivery time of room service orders for breakfast (negative time means that the order was delivered before the requested time, whereas the positive time means that the order was delivered after the requested time). The factor included were the menu choice (American and Continental) and the desired time period in which the order was to be delivered (Early Time Period [6:30~8:00a.m.] or Late Time Period[8:00~9:30a.m.]). Ten orders for each combination of menu choice and desired time period were studied on a particular day, and the data were stored (BreakFast.xlsx)

(a) At the 0.05 level of significance, is there an interaction between type of breakfast and desired time?

(b) Draw the plot of means.
(c) At the 0.05 level of significance, is there an effect due to type of breakfast? (d) At the 0.05 level of significance, is there an effect due to desired time?

A hotel wanted to develop a new system for delivering room service breakfasts. In the current system, an order form is left on the bed in each room. If the customer wishes to receive a room service breakfast, he or she places the order form on the doorknob before 11p.m. The current system requires customers to select a 15-minute interval for desired delivery time (6:30~6:45a.m., 6:45~7:00a.m., etc.). The new system is designed to allow the customer to request a specific delivery time. The hotel wants to measure the difference (in min.) between the actual delivery time and the requested delivery time of room service orders for breakfast (negative time means that the order was delivered before the requested time, whereas the positive time means that the order was delivered after the requested time). The factor included were the menu choice (American and Continental) and the desired time period in which the order was to be delivered (Early Time Period [6:30~8:00a.m.] or Late Time Period[8:00~9:30a.m.]). Ten orders for each combination of menu choice and desired time period were studied on a particular day, and the data were stored

(a) At the 0.05 level of significance, is there an interaction between type of breakfast and desired time?

(b) Draw the plot of means.

(c) At the 0.05 level of significance, is there an effect due to type of breakfast?

(d) At the 0.05 level of significance, is there an effect due to desired time?

You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash. Since you are well trained in budgeting, you have decided to prepare a master budget for the upcoming second quarter. To this end, you have worked with accounting and other areas to gather the information assembled below. The company sells many styles of earrings, but all are sold for the same price—$14 per pair.

Actual sales of earrings for the last three months and budgeted sales for the next six months follow (in pairs of earrings): January (actual) 21,600 June (budget) 51,600 February (actual) 27,600 July (budget) 31,600 March (actual) 41,600 August (budget) 29,600 April (budget) 66,600 September (budget) 26,600 May (budget) 101,600

You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash. Since you are well trained in budgeting, you have decided to prepare a master budget for the upcoming second quarter. To this end, you have worked with accounting and other areas to gather the information assembled below.

The company sells many styles of earrings, but all are sold for the same price—$14 per pair. Actual sales of earrings for the last three months and budgeted sales for the next six months follow (in pairs of earrings):

January (actual)

21,600

June (budget)

51,600

February (actual)

27,600

July (budget)

31,600

March (actual)

41,600

August (budget)

29,600

April (budget)

66,600

September (budget)

26,600

May (budget)

101,600

The concentration of sales before and during May is due to Mother’s Day. Sufficient inventory should be on hand at the end of each month to supply 40% of the earrings sold in the following month.

Suppliers are paid $4.80 for a pair of earrings. One-half of a month’s purchases is paid for in the month of purchase; the other half is paid for in the following month. All sales are on credit. Only 20% of a month’s sales are collected in the month of sale. An additional 70% is collected in the following month, and the remaining 10% is collected in the second month following sale. Bad debts have been negligible.

Monthly operating expenses for the company are given below:

Variable:

Sales commissions

You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash. Since you are well trained in budgeting, you have decided to prepare a master budget for the upcoming second quarter. To this end, you have worked with accounting and other areas to gather the information assembled below.

The company sells many styles of earrings, but all are sold for the same price—$14 per pair. Actual sales of earrings for the last three months and budgeted sales for the next six months follow (in pairs of earrings):

The concentration of sales before and during May is due to Mother’s Day. Sufficient inventory should be on hand at the end of each month to supply 40% of the earrings sold in the following month.

Suppliers are paid $4.80 for a pair of earrings. One-half of a month’s purchases is paid for in the month of purchase; the other half is paid for in the following month. All sales are on credit. Only 20% of a month’s sales are collected in the month of sale. An additional 70% is collected in the following month, and the remaining 10% is collected in the second month following sale. Bad debts have been negligible.

Monthly operating expenses for the company are given below:

Insurance is paid on an annual basis, in November of each year.

The company plans to purchase $20,000 in new equipment during May and $48,000 in new equipment during June; both purchases will be for cash. The company declares dividends of $21,000 each quarter, payable in the first month of the following quarter.

The company’s balance sheet as of March 31 is given below:

The company maintains a minimum cash balance of $58,000. All borrowing is done at the beginning of a month; any repayments are made at the end of a month.

The company has an agreement with a bank that allows the company to borrow in increments of $1,000 at the beginning of each month. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. At the end of the quarter, the company would pay the bank all of the accumulated interest on the loan and as much of the loan as possible (in increments of $1,000), while still retaining at least $58,000 in cash.

Required:

Prepare a master budget for the three-month period ending June 30. Include the following detailed schedules:

1. a. A sales budget, by month and in total.

    b. A schedule of expected cash collections, by month and in total.

    c. A merchandise purchases budget in units and in dollars. Show the budget by month and in total.

    d. A schedule of expected cash disbursements for merchandise purchases, by month and in total.

2. A cash budget. Show the budget by month and in total. Determine any borrowing that would be needed to maintain the minimum cash balance of $58,000.

3. A budgeted income statement for the three-month period ending June 30. Use the contribution approach.

4. A budgeted balance sheet as of June 30.

4

% of sales

Fixed:

Advertising

$

280,000

Rent

$

26,000

Salaries

$

122,000

Utilities

$

11,000

Insurance

$

3,800

Depreciation

$

22,000

Insurance is paid on an annual basis, in November of each year.

The company plans to purchase $20,000 in new equipment during May and $48,000 in new equipment during June; both purchases will be for cash. The company declares dividends of $21,000 each quarter, payable in the first month of the following quarter.

The company’s balance sheet as of March 31 is given below:

Assets

Cash

$

82,000

Accounts receivable ($38,640 February sales; $465,920 March sales)

504,560

Inventory

127,872

Prepaid insurance

25,000

Property and equipment (net)

1,030,000

Total assets

$

1,769,432

Liabilities and Stockholders’ Equity

Accounts payable

$

108,000

Dividends payable

21,000

Common stock

960,000

Retained earnings

680,432

Total liabilities and stockholders’ equity

$

1,769,432

The company maintains a minimum cash balance of $58,000. All borrowing is done at the beginning of a month; any repayments are made at the end of a month.

The company has an agreement with a bank that allows the company to borrow in increments of $1,000 at the beginning of each month. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. At the end of the quarter, the company would pay the bank all of the accumulated interest on the loan and as much of the loan as possible (in increments of $1,000), while still retaining at least $58,000 in cash.

Required:

Prepare a master budget for the three-month period ending June 30. Include the following detailed schedules:

1. a. A sales budget, by month and in total.

    b. A schedule of expected cash collections, by month and in total.

    c. A merchandise purchases budget in units and in dollars. Show the budget by month and in total.

    d. A schedule of expected cash disbursements for merchandise purchases, by month and in total.

2. A cash budget. Show the budget by month and in total. Determine any borrowing that would be needed to maintain the minimum cash balance of $58,000.

3. A budgeted income statement for the three-month period ending June 30. Use the contribution approach.

4. A budgeted balance sheet as of June 30.

The concentration of sales before and during May is due to Mother’s Day. Sufficient inventory should be on hand at the end of each month to supply 40% of the earrings sold in the following month. Suppliers are paid $4.80 for a pair of earrings. One-half of a month’s purchases is paid for in the month of purchase; the other half is paid for in the following month. All sales are on credit. Only 20% of a month’s sales are collected in the month of sale. An additional 70% is collected in the following month, and the remaining 10% is collected in the second month following sale. Bad debts have been negligible. Monthly operating expenses for the company are given below: Variable: Sales commissions 4 % of sales Fixed: Advertising $ 280,000 Rent $ 26,000 Salaries $ 122,000 Utilities $ 11,000 Insurance $ 3,800 Depreciation $ 22,000 Insurance is paid on an annual basis, in November of each year. The company plans to purchase $20,000 in new equipment during May and $48,000 in new equipment during June; both purchases will be for cash. The company declares dividends of $21,000 each quarter, payable in the first month of the following quarter. The company’s balance sheet as of March 31 is given below: Assets Cash $ 82,000 Accounts receivable ($38,640 February sales; $465,920 March sales) 504,560 Inventory 127,872 Prepaid insurance 25,000 Property and equipment (net) 1,030,000 Total assets $ 1,769,432 Liabilities and Stockholders’ Equity Accounts payable $ 108,000 Dividends payable 21,000 Common stock 960,000 Retained earnings 680,432 Total liabilities and stockholders’ equity $ 1,769,432 The company maintains a minimum cash balance of $58,000. All borrowing is done at the beginning of a month; any repayments are made at the end of a month. The company has an agreement with a bank that allows the company to borrow in increments of $1,000 at the beginning of each month. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. At the end of the quarter, the company would pay the bank all of the accumulated interest on the loan and as much of the loan as possible (in increments of $1,000), while still retaining at least $58,000 in cash. Required: Prepare a master budget for the three-month period ending June 30. Include the following detailed schedules: 1. a. A sales budget, by month and in total.     b. A schedule of expected cash collections, by month and in total.     c. A merchandise purchases budget in units and in dollars. Show the budget by month and in total.     d. A schedule of expected cash disbursements for merchandise purchases, by month and in total. 2. A cash budget. Show the budget by month and in total. Determine any borrowing that would be needed to maintain the minimum cash balance of $58,000. 3. A budgeted income statement for the three-month period ending June 30. Use the contribution approach. 4. A budgeted balance sheet as of June 30.

An accountant for a large department store has the business objective of developing a model to predict the amount of time it takes to process invoices. Data are collected from the past 32 working days, and the number of invoices processed and completion time (in hours) are shown below. (Hint: First determine which are the independent and dependent variables.) Use Excel:

• Assuming a linear relationship, create a regression model to compute the regression coefficients b₀ and b₁.
• Interpret the meaning of the Y intercept, b₀, and the slope, b₁. What does the slope tell you about the relationship between number of invoices processed and completion time?
• Use the prediction line developed to predict the mean amount of time it would take to process 150 invoices. Would you use the regression model to predict the amount of time it would take to process 350 invoices? Why?
• What is the coefficient of determination, r² ? Interpret its meaning.
• Plot the residuals against the number of invoices processed and also against time. Based on these plots, does the model seem appropriate?

Through the payment of $12,377,000 in cash, Drexel Company acquires voting control over Young Company. This price is paid for 60 percent of the subsidiary's 110,000 outstanding common shares ($50 par value) as well as all 10,000 shares of 7 percent, cumulative, $100 par value preferred stock. Of the total payment, $3.8 million is attributed to the fully participating preferred stock with the remainder paid for the common. This acquisition is carried out on January 1, 2021, when Young reports retained earnings of $10.7 million and a total book value of $17.2 million. The acquisition-date fair value of the noncontrolling interest in Young's common stock was $5,718,000. On this same date, a building owned by Young (with a 5-year remaining life) is undervalued in the financial records by $350,000, while equipment with a 15-year remaining life is overvalued by $120,000. Any further excess acquisition-date fair value is assigned to a brand name with a 20-year remaining life.

During 2021, Young reports net income of $970,000 while declaring $470,000 in cash dividends. Drexel uses the initial value method to account for both of these investments.

Prepare appropriate consolidation entries for 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars and not in millions.)

1. Prepare a combined entry for Consolidation Entries S and A.

2. Prepare Consolidation Entry I1 for the dividends declared on preferred stock.

3. Prepare Consolidation Entry I1 for the dividends declared on common stock.

4. Prepare Consolidation Entry E to record amortization.