Blossom, Inc., is a small company that manufactures three versions of patio tables. Unit information for its products follows:     

Blossom has determined that it can sell a limited number of each table in the upcoming year. Expected demand for each model follows:

Required:
1. Suppose that direct labor hours has been identified as the bottleneck resource. Determine how Blossom should prioritize production by rank ordering the products from 1 to 3.



2. If Blossom has only 50,000 direct labor hours available, calculate the number of units of each table that Blossom should produce to maximize its profit. (Enter the products in the sequence of their preferences; the product with first preference should be entered first.)



3. Suppose that the number of machine hours has been identified as the most constrained resource. Determine how Blossom should prioritize production by rank ordering the products from 1 to 3.



4. If Blossom has only 247,000 machine hours available, calculate the number of units of each table that Blossom should produce to maximize its profit. (Enter the products in the sequence of their preferences; the product with first preference should be entered first.)

The following was taken from the books of Coyote Company as of December 31, 2017.

a. Prepaid insurance expired during the year, $11,000.

b. Estimated bad debts, 1.0% of sales.

c. Inventory as of 12/31/2017 turned out to be $40,000.

d. Four month rent of $56,000 was paid in advance on October 1, 2017 and charged to rent expense then. 4 months From Oct. 2017 to Jan 2018.

e. Furniture and equipment have an average useful life of 5 years and no salvage value. Coyote Company uses the straight line method of depreciation.

f. Utility bill of $600 for the month of December 2017 will be paid on its due date, January 10, 2018: a missing record.

g. Salaries earned but not yet paid by December 31, 2017, $6,000.

Instruction: prepare

1. Any necessary adjusting entries at the end of 2017.

2. Income Statement and statement of retained earnings, and balance sheet of the company for the year 2017.

3. Any necessary closing entries at the end of 2017.

Assume you work for OSHA (Occupational Safety and Health Administration) and have complaints about noise levels from some of the workers at a state power plant. You charge the power plant with taking decibel readings at 2 different areas of the plant at different times of the day and week. The results of the data collection are listed. The safe hearing level is approximately 120 decibels

Question 1. Calculate mean, median, mode, and standard deviation to describe the data of collected data for Area 1 using Data>Data Analysis>Descriptive Statistics. Make precise interpretations of each statistical measure in Text Box (Insert>Text Box). (2 points)

Question 2. Calculate first, second and third quartiles for Area 2 (Q1, Q2, Q3, Excel: =QUARTILE()) and interquartile range (IQR=Q3-Q1). Make precise interpretations of each statistical measure. (2.0 points)

Question 3. Determine class width and create a frequency table with 4 classes for Area 1. The table should have the following headings (2.0 points): Class limits Frequency Relative frequency Cumulative frequency

Question 4. Draw bar chart (based on the data from question 3) describing the obtained relative frequency. Provide description. (0.5 point)

Question 5. Make recommendations about which plant area workers must be provided with protective ear wear. (1.0 point)

10) If a gas sample is heated, which change is expected?

a. Volume would increase.

b. Volume would decrease.

c. Volume is a fixed quantity; it cannot change.

d. The initial and final temperature does not affect volume.

11) If the pressure of a liquid was 600. mmHg, what is its pressure in torr?

12) In a gas, the particles

a. are close to each other.

b. are moving rapidly.

c. attract or repel.

d. All of these statements are true.

13) Suppose we take a 4.0 liter sample of a gas at 1.0 atm and increase the temperature from 22 C to100 C. What will the final pressure be if the volume does not change?

17) What is true about gases when the temperature increases?

a. The gas molecules collide with the walls of the container with more force.

b. The gas molecules move faster.

c. Gas particles hit the walls of the container more often.

d. All of these statements are true.

18) Which statement is incorrect when considering gases?

a. Gas molecules are not in motion at room temperature.

b. The pressure of a gas increases when the gas particles collide with the walls of the

chamber with more force.

c. A reason why molecules of a gas fill a container is that there is no attraction between the

molecules of the gas.

d. Statements 1 and 2 are both false.

19) Which statement is true?

a. When pressure increases, volume increases.

b. When temperature increases, volume increases.

c. When temperature increases, pressure decreases.

d. When the number of moles of gas increases, the pressure decreases.

20) What mass of neon has a volume of 56.0 L at STP?

Consider the following information about two stocks (D and E) and two common risk factors (1 and 2):

1. Assuming that the risk-free rate is 5.2%, calculate the levels of the factor risk premia that are consistent with the reported values for the factor betas and the expected returns for the two stocks. Round your answers to one decimal place.

   λ₁:   %

   λ₂:   %

2. You expect that in one year the prices for Stocks D and E will be $58 and $38, respectively. Also, neither stock is expected to pay a dividend over the next year. What should the price of each stock be today to be consistent with the expected return levels listed at the beginning of the problem? Round your answers to the nearest cent.

   Today's price for Stock D: $  

   Today's price for Stock E: $  

3. Suppose now that the risk premium for Factor 1 that you calculated in Part a suddenly increases by 0.20% (i.e., from x% to (x + 0.20)%, where x is the value established in Part a. What are the new expected returns for Stocks D and E? Round your answers to two decimal places.

   Expected return for Stock D:   %

   Expected return for Stock E:   %

4. If the increase in the Factor 1 risk premium in Part c does not cause you to change your opinion about what the stock prices will be in one year, what adjustment will be necessary in the current (i.e., today’s) prices? Do not round intermediate calculations. Round your answers to the nearest cent.

   Today's price for Stock D: $  

   Today's price for Stock E: $  

Problem 3 (Textbook Reference: P4-4) – Activity-based costing versus traditional costing C&W Corporation manufactures travel clocks and watches. Overhead costs are currently allocated using direct- labor hours, but the controller has recommended using an activity-based costing system based on the following data:

Activity =Production setup, Material handling and requisition, Packaging and shipping ,Total overhead

Cost Driver= Setups, Parts, Units shipped

Cost $ 100,000 $ 30,000 $ 60,000 $ 190,000

Activity Level= Travel Clocks20,24,80,000 Watches 30, 36, 120,000 Required (Traditional Method):

1. Using the traditional cost assignment method, calculate the plant-wide overhead rate using labor-hours as the allocation base. Assume labor-hours required to assemble each unit are 0.5 hours per travel clock and 1.0 hour per watch, and that 80,000 travel clocks and 120,000 watches were produced. Plant-wide overhead rate: $___________________per direct labor hour

2. Under the traditional cost assignment method using the plant-wide overhead rate, how much total overhead cost is allocated to the: Travel clocks: $________________ Watches: $________________ *** Problem 3 is continued on the next page *** Required (ABC Method):

3. Using the Activity-based Costing (ABC) assignment method, calculate the activity cost rates for the following activities: (a) Setup costs: $___________________per production run (b) Materials handling costs: $___________________per part (c) Packaging and shipping costs: $___________________per shipment

4. Using the Activity-based Costing (ABC) assignment method how much total overhead cost is allocated to the: Travel clocks: $________________ Watches: $________________

EcoSacks manufactures cloth shopping bags. The controller is preparing a budget for the coming year and asks for your assistance. The following costs and other data apply to bag production.

You learn that equipment costs and building occupancy are fixed and are based on a normal production of 600,000 units per year. Other overhead costs are variable. Plant capacity is sufficient to produce 750,000 units per year.

Labor costs per hour are not expected to change during the year. However, the cotton supplier has informed EcoSacks that it will impose a 20 percent price increase at the start of the coming budget period. No other costs are expected to change.

During the coming budget period, EcoSacks expects to sell 540,000 bags. Finished goods inventory is targeted to increase from the current balance of 120,000 units to 210,000 units to prepare for an expected sales increase the year after next as a result of legislation in several states regarding plastic bags. Production will occur evenly throughout the year. Inventory levels for cotton and canvas are expected to remain unchanged throughout the year. There is no work-in-process inventory.

Required:

a. Prepare a production budget for the coming year.

b. Estimate the materials, labor, and overhead costs for the coming year.

Ghost, Inc., has no debt outstanding and a total market value of $382,500. Earnings before interest and taxes, EBIT, are projected to be $52,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 14 percent higher. If there is a recession, then EBIT will be 23 percent lower. The company is considering a $190,000 debt issue with an interest rate of 7 percent. The proceeds will be used to repurchase shares of stock. There are currently 8,500 shares outstanding. Ignore taxes for questions a and b. Assume the company has a market-to-book ratio of 1.0 and the stock price remains constant.

On January 1, 2020, Concord Inc.’s general ledger had these liability accounts:

In addition, Concord had a balance in HST Receivable of $4,200 at January 1, 2020. Concord uses a periodic inventory system, operates in the Province of Ontario where HST is 13% and follows ASPE. Concord’s required premium for EI is 1.4 times the employee premium; for CPP, it is 1.0 times the employee contribution.

In January 2021, the following transactions occurred:

Prepare all the journal entries necessary to record the transactions noted above as they occurred

1. (To record cash sales plus HST)
2. (To record service revenue for cash previously received)
3. (Remitted HST payable)
4. (Remitted payroll deduction)
5. (To record purchase of equipment on account)     
6. (To record payment of monthly payroll)       
7. (To record employer benefits expense)

Beckman Engineering and Associates (BEA) is considering a change in its capital structure. BEA currently has $20 million in debt carrying a rate of 6%, and its stock price is $40 per share with 2 million shares outstanding. BEA is a zero growth firm and pays out all of its earnings as dividends. The firm's EBIT is $14.039 million, and it faces a 40% federal-plus-state tax rate. The market risk premium is 6%, and the risk-free rate is 7%. BEA is considering increasing its debt level to a capital structure with 40% debt, based on market values, and repurchasing shares with the extra money that it borrows. BEA will have to retire the old debt in order to issue new debt, and the rate on the new debt will be 12%. BEA has a beta of 1.0.

What is the total value of the firm with 40% debt? Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55. Do not round intermediate calculations. Round your answer to three decimal places.
$ ___ million

1. What is BEA's unlevered beta? Use market value D/S (which is the same as w_d/w_s) when unlevering. Do not round intermediate calculations. Round your answer to two decimal places.
   _____
2. What are BEA's new beta and cost of equity if it has 40% debt? Do not round intermediate calculations. Round your answers to two decimal places.
   Beta: ____
   Cost of equity: ____ %
3. What are BEA’s WACC and total value of the firm with 40% debt? Do not round intermediate calculations. Round your answer to two decimal places.
   _____%