On October 15, 2020, the board of directors of Ensor Materials Corporation approved a stock option plan for key executives. On January 1, 2021, 30 million stock options were granted, exercisable for 30 million shares of Ensor's $1 par common stock. The options are exercisable between January 1, 2024, and December 31, 2026, at 80% of the quoted market price on January 1, 2021, which was $15. The fair value of the 30 million options, estimated by an appropriate option pricing model, is $5 per option. Ensor chooses the option to recognize forfeitures only when they occur.

Ten percent (3 million) of the options were forfeited when an executive resigned in 2022. All other options were exercised on July 12, 2025, when the stock’s price jumped unexpectedly to $30 per share.

Required:
1. When is Ensor’s stock option measurement date?
2. Determine the compensation expense for the stock option plan in 2021. (Ignore taxes.)
3. Prepare the journal entries to reflect the effect of forfeiture of the stock options on Ensor’s financial statements for 2022 and 2023.
5. Prepare the journal entry to account for the exercise of the options in 2025.

In October, Nicole eliminated all existing inventory of cosmetic items. The trouble of ordering and tracking each product line had exceeded the profits earned. In December, a supplier asked her to sell a prepackaged spa kit. Feeling she could manage a single product line, Nicole agreed. Nicole’s Getaway Spa (NGS) would make monthly purchases from the supplier at a cost that included production costs and a transportation charge. NGS would keep track of its new inventory using a perpetual inventory system. On December 31, NGS purchased 10 units at a total cost of $7.20 per unit. Nicole purchased 25 more units at $8.80 in February. In March, Nicole purchased 10 units at $10.80 per unit. In May, 40 units were purchased at $10.60 per unit. In June, NGS sold 40 units at a selling price of $12.80 per unit and 30 units at $10.80 per unit. Compute the Cost of Goods Available for Sale, Cost of Goods Sold, and Cost of Ending Inventory using the first-in, first-out (FIFO) method. (Round "Cost per Unit" to 2 decimal places.

The federal government calculates its budget on a fiscal year that begins each year on October 1 and ends the following September 30. At the beginning of the 2003-2004 fiscal year, the Department of Finance forecast that the federal budget surplus for the fiscal year would be $4.0 billion. The actual budget surplus for the fiscal year was $9.1 billion. Federal expenditures were $1.7 billion less than the Department had forecast, and federal revenue was $1.5 billion more that the Department had forecast. The remainder of the surplus came from lower-than-forecast debt charges. a) Is it likely that the economy grew faster or more slowly during fiscal 2003-2004 than the Department of Finance had expected? Explain your reasoning. b) Suppose that the federal government was committed to balancing the budget each year. What actions of the government would have led to a balanced budget? And what will be the economic consequences? Explain. c) Does the surprise surplus during fiscal 2003-2004 provide any insight into difficulties that might arise in trying to balance the budget every year? Explain.

1. Consider the report distributed by the White House Council of Economic Advisers in October 2016 entitled “Labor Market Monopsony: Trends, Consequences, and Policy Responses”.  This paper can be found on the course BbLearn page.

1. (4 points) Focus on the section entitled “Sources of Monopsony Power in the Labor Market” (pages 3-7). Summarize the factors the report argues have restricted worker wages. Based on the information provided, which of the reasons discussed do you think has had the strongest impact on restricting wage growth in the U.S. labor market?

2. (4 points) Consider the subsection on labor market dynamism (pages 10-12). Discuss the evidence presented in this set of figures regarding trends in mobility among workers. What has been happening to mobility? Do you consider these trends in mobility to be a good sign or a bad sign overall for the state of the economy? Discuss your reasoning, and note that your opinion of the trends can vary by the type of mobility discussed.

3. (4 points) Based on the evidence presented in this document, how much do you think government policy should be used to counteract the impact of monopsony power on wages? Explain your reasoning.  Assuming we were going to use policy, which of the many policy responses mentioned do you think would be most important to adopt? Which would be the least important to adopt? Explain your reasoning.

Use the following information to answer questions 26 to 29. In October 1998, 30% of employed adults were satisfied with their chances for promotion. A human resource manager wants to determine if this percentage has changed significantly since then. She randomly selects 280 employed adults and find that 112 of them are completely satisfied with their chances for promotion. Is there sufficient evidence to conclude that the percentage of employed adults satisfied with their chances for promotion is significantly different from the percentage in 1998, at the α = 0.1 level of significance?

The null and alternative hypothesis are: A. H0: p = 0.3 versus H1: p ≠ 0.3 B. H0: p = 0.4 versus H1: p ≠ 0.4 C. H0: p = 0.3 versus H1: p < 0.3 D. H0: p = 0.3 versus H1: p > 0.3 5 puntos PREGUNTA

27 The t statistic is equal to: A. z = 1.65 B. z = -1.65 C. t = 3.65 D. t = -3.65

PREGUNTA 28 The critical value is equal to: A. t = ± 3.65 B. z = ± 1.65 C. z = 3.65 D. z = -1.65

PREGUNTA 29 The conclusion is to Reject the Null Hypothesis Verdadero o Falso

On October 15, 2020, the board of directors of Ensor Materials Corporation approved a stock option plan for key executives. On January 1, 2021, 32 million stock options were granted, exercisable for 32 million shares of Ensor's $1 par common stock. The options are exercisable between January 1, 2024, and December 31, 2026, at 80% of the quoted market price on January 1, 2021, which was $30. The fair value of the 32 million options, estimated by an appropriate option pricing model, is $6 per option. Ensor chooses the option to recognize forfeitures only when they occur.

Ten percent (3.2 million) of the options were forfeited when an executive resigned in 2022. All other options were exercised on July 12, 2025, when the stock’s price jumped unexpectedly to $34 per share.

Required:
1. When is Ensor’s stock option measurement date?
2. Determine the compensation expense for the stock option plan in 2021. (Ignore taxes.)
3. Prepare the journal entries to reflect the effect of forfeiture of the stock options on Ensor’s financial statements for 2022 and 2023.
5. Prepare the journal entry to account for the exercise of the options in 2025.

1. In October 2000, the U.S. Department of Commerce reported the results of a large-scale survey on high school graduation. Researchers contacted more than 25,000 Americans aged 24 years to see if they had finished high school; 83.9% of the 12,460 males and 87.8% of the 12,678 females indicated that they had high school diplomas.

a. Are the assumptions and conditions necessary for inference satisfied? Explain.

b. Create a 95% confidence interval for the difference in graduation rates between males and females.

c. Interpret your confidence interval.

d. Does this provide strong evidence that girls are more likely than boys to complete high school? Explain.

17. On October 1, Robertson Company sold inventory in the amount of $5,800 to Alberta, Inc. with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Robertson uses a periodic inventory system. Alberta pays the invoice on October 8 and takes the appropriate discount. What journal entry will be recorded by Robertson on October 8 if they use the gross method?

A) Debit Cash and credit Accounts Receivable for $5,800.

B) Debit Cash and credit Accounts Receivable for $4,000.

C) Debit Cash for $3,920, debit Sales Revenue for $80, and credit Accounts Receivable for $4,000.

D) Debit Cash for $5,684, debit Sales Revenue for $116, and credit Accounts Receivable for $5,800.

19. Maxell Company uses the FIFO method to assign costs to inventory and cost of goods sold. The company uses a periodic inventory system. Consider the following information:

Date                      Description                         # of units             Cost per unit

January 1             Beginning inventory       100                         $5

June 2                   Purchase                             75                           $4

November 5       Sales                                      125        

What amounts would be reported as the cost of goods sold and ending inventory balances for the year?

Cost of goods sold $625; Ending inventory $175

Cost of goods sold $755; Ending inventory $225

Cost of goods sold $550; Ending inventory $250

Cost of goods sold $600; Ending inventory $200

24. Beyer Company bought inventory from Sellar Company, FOB destination. On December 31, the last day of the accounting year, the goods were on a truck owned by Common Carrier, Inc., and not expected to arrive until January 2. Which company should include these goods in its December 31 inventory?

Sellar

Beyer

Common Carrier

None of them should include these goods in inventory.

Bell Company, a manufacturer of audio systems, started its production in October 2017. For the preceding 3 years, Bell had been a retailer of audio systems. After a thorough survey of audio system markets, Bell decided to turn its retail store into an audio equipment factory. Raw materials cost for an audio system will total $74 per unit. Workers on the production lines are on average paid $12 per hour. An audio system usually takes 5 hours to complete. In addition, the rent on the equipment used to assemble audio systems amounts to $4,900 per month. Indirect materials cost $5 per system. A supervisor was hired to oversee production; her monthly salary is $3,000. Factory janitorial costs are $1,300 monthly. Advertising costs for the audio system will be $9,500 per month. The factory building depreciation expense is $7,800 per year. Property taxes on the factory building will be $9,000 per year. New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is partially correct. Assuming that Bell manufactures, on average, 1,500 audio systems per month, enter each cost item on your answer sheet, placing the dollar amount per month under the appropriate headings. Total the dollar amounts in each of the columns. Product Costs Cost Item Direct Materials Direct Labor Manufacturing Overhead Period Costs Raw materials $ $ $ $ Wages for workers Rent on equipment Indirect materials Factory supervisor’s salary Janitorial costs Advertising Depreciation on factory building Property taxes on factory building $ $ $ $ eTextbook and Media Incorrect answer iconYour answer is incorrect. Compute the cost to produce one audio system. (Round answer to 2 decimal places, e.g. 15.25.) Production cost per system $