1. The following data has been extracted from the following budgets and standard costs of Storm Limited, a company which manufactures and sells two products J & K.

Storm cost and revenue

                                                                      Per unit

Fixed production overhead costs are budgeted at £2,000,000 per quarter. Normal production is planned to be 500,000 machine hours per quarter.

Budgeted selling and distribution costs are as follows:

Variable                  £1.50 per unit sold

Fixed                      £800,000 per quarter

Budgeted administration costs are £1,200,000 per quarter. The company allocates production overheads to products based on machine hours.

The following pattern of sales and production is expected during the first six months of the year:

Production is higher than sales in order to meet seasonal demand in July – September.

          There is no stock on January 1^st

You should assume that actual fixed costs for the two quarters were the same as budgeted fixed costs.

Required:

1. Prepare profit statements for each of the two quarters, in a columnar format, using:

1. marginal costing
2. absorption costing

2. Reconcile the profits reported for each quarter in your answer to (a) above.

(c)      State and explain briefly why companies might decide to use marginal costing as the basis of management reporting.

2.       Compare and contrast the different worldviews on which ABC and Throughput Accounting are based.

Hayes Industries purchased the following assets and constructed a building as well. All this was done during the current year. Assets 1 and 2: These assets were purchased as a lump sum for $100,000 cash. The following information was gathered. Description Initial Cost on Seller’s Books Depreciation to Date on Seller’s Books Book Value on Seller’s Books Appraised Value Machinery $100,000 $50,000 $50,000 $90,000 Equipment 60,000 10,000 50,000 30,000 Asset 3: This machine was acquired by making a $10,000 down payment and issuing a $30,000, 2-year, zero-interest-bearing note. The note is to be paid off in two $15,000 installments made at the end of the first and second years. It was estimated that the asset could have been purchased outright for $35,900. Asset 4: This machinery was acquired by trading in used machinery. (The exchange lacks commercial substance.) Facts concerning the trade-in are as follows. Cost of machinery traded $100,000 Accumulated depreciation to date of sale 40,000 Fair value of machinery traded 80,000 Cash received 10,000 Fair value of machinery acquired 70,000 Asset 5: Equipment was acquired by issuing 100 shares of $8 par value common stock. The stock had a market price of $11 per share. Construction of Building: A building was constructed on land purchased last year at a cost of $150,000. Construction began on February 1 and was completed on November 1. The payments to the contractor were as follows. Date Payment 2/1 $120,000 6/1 360,000 9/1 480,000 11/1 100,000 To finance construction of the building, a $600,000, 12% construction loan was taken out on February 1. The loan was repaid on November 1. The firm had $200,000 of other outstanding debt during the year at a borrowing rate of 8%. Record the acquisition of each of these assets.

Required information [The following information applies to the questions displayed below.] Chipolo sells a coin-sized tracking tag that attaches to keys, wallets, and other personal items. Chipolo began January with an inventory of 200 tags purchased from its supplier in November last year at a cost of $12 per tag, plus 100 tags purchased in December last year at a cost of $15 per tag. Chipolo sells the tags at a price of $30 per tag, on account with terms n/30, FOB destination. Chipolo uses a perpetual inventory system to account for the following transactions. Jan. 8 Chipolo gave 250 tags to a courier company (FedEx) to deliver to customers. Jan. 9 FedEx confirmed that all 250 tags were delivered today to customers. Jan. 11 Chipolo ordered 350 tags from its supplier. The supplier was out of stock but promised to send them to Chipolo as soon as possible. Chipolo agreed to a cost of $21 per tag, n/30. Jan. 17 Chipolo received cash payment from customers for 125 of the tags delivered 8 days earlier. Jan. 21 The 350 tags ordered on January 11 were shipped to and received by Chipolo today. Jan. 23 Chipolo gave 375 tags to FedEx, which were delivered “same day” to customers. Jan. 31 Chipolo counted its inventory and determined 20 tags were on hand. Chipolo made a “book-to-physical adjustment” to account for the missing 5 tags. Required: Assume Chipolo uses FIFO in its perpetual inventory system. Prepare the journal entry for each transaction. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Nash Corporation was organized on January 1, 2017. It is authorized to issue 9,600 shares of 8%, $100 par value preferred stock, and 501,500 shares of no-par common stock with a stated value of $1 per share. The following stock transactions were completed during the first year. Jan. 10 Issued 80,050 shares of common stock for cash at $6 per share. Mar. 1 Issued 5,930 shares of preferred stock for cash at $113 per share. Apr. 1 Issued 24,680 shares of common stock for land. The asking price of the land was $90,820; the fair value of the land was $80,050. May 1 Issued 80,050 shares of common stock for cash at $8 per share. Aug. 1 Issued 9,600 shares of common stock to attorneys in payment of their bill of $50,400 for services rendered in helping the company organize. Sept. 1 Issued 9,600 shares of common stock for cash at $10 per share. Nov. 1 Issued 1,100 shares of preferred stock for cash at $115 per share. Prepare the journal entries to record the above transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 10Mar. 1Apr. 1May 1Aug. 1Sept. 1Nov. 1 Jan. 10Mar. 1Apr. 1May 1Aug. 1Sept. 1Nov. 1 Jan. 10Mar. 1Apr. 1May 1Aug. 1Sept. 1Nov. 1 Jan. 10Mar. 1Apr. 1May 1Aug. 1Sept. 1Nov. 1 Jan. 10Mar. 1Apr. 1May 1Aug. 1Sept. 1Nov. 1 Jan. 10Mar. 1Apr. 1May 1Aug. 1Sept. 1Nov. 1 Jan. 10Mar. 1Apr. 1May 1Aug. 1Sept. 1Nov. 1 Show List of Accounts

1. In 2019, its first year of operations, Brighton Finance Corporation, based in London, UK, had the following transactions regarding its investments (currency in British pound, £):

May. 1 Purchased 600 Clifford Ltd. common shares for £60 per share. This investment is held for trading purposes.

June. 1 Purchased 1,000 bonds of Gladstone Inc. at face-value price of £100 each. These bonds bear interest at 6%, which is paid semi-annually on November 30 and May 31 each year. They were also purchased for trading purposes.

July. 1    Purchased 4,000 Waterloo Corporation common shares for £70 per share. This represents 25% of the issued common shares. Because of this investment, the directors of Waterloo have invited a Brighton’s executive to sit on their board.

Sep. 1 Received a £1-per-share cash dividend from Waterloo Corporation.

Nov. 1 Sold 200 Clifford Ltd. common shares for £63 per share.

Nov. 30 Interest on the Gladstone Inc. bonds was received.

Dec. 15 Received a £0.50-per-share cash dividend on Clifford Ltd. common shares.

Dec. 31 On this date, the fair values per share were £55 for Clifford Ltd. and £73 for Waterloo Corporation. The fair value of the Gladstone bonds was £101 each. Waterloo reported a profit for the year ended December 31, 2019, of £100,000.

Instructions:

1. Make journal entries on the above transactions up to Dec. 15.
2. Prepare the adjusting journal entries required to report the investments at their fair value and accrue any investment revenue at the end of 2019.
3. Show the partial presentation of each investment and the related investment income reflected in Brighton’s 2019 statement of financial position and income statement.

Practice with value of single time events.

1. Imagine you are given the $100 today. If you invest it, how much will it be worth in 5 years if the annual rate of interest is 10%?
2. How much would that $100 be worth in 5 years if the annual rate of interest is 5%?
3. What is the Present Value of $100 given to you in 5 years if the discount rate is 10%?
4. What is the Present Value of $100 given to you in 5 years if the discount rate is 5%?

A 3000 bp circular DNA was treated with both HindIII and EcoRI restriction enzymes. EcoRI cuts at position 100. HindIII cuts at positions 500 and 2000. Which of the following represents the fragment that would be observed if the restricted DNA were analyzed using agarose gel electrophoresis?

A. 400, 100, 1000, 1500

B. 400, 500, 1500

C. 400, 100, 1600

D. 500, 100, 500, 900

E. 500, 1000, 600

I only need assistance in answering Part 2 questions. Part 1 was included for background information. Please and Thank You!

Part I – Infertility Issues
Jane sat nervously in the examination room. She had no idea what to expect. Her husband, Brian, gave her a

reassuring smile and squeezed her hand. There was a knock on the door and then it opened to admit the physician.

“Hello, Jane. I’m Dr. Klein and I’ll be doing your fertility assessment today.”

“It’s nice to finally meet you Dr. Klein. This is my husband, Brian.” The two men smiled at each other and shook hands.

Dr. Klein sat down on the stool and opened up a thick file. “Jane, I’ve looked over the medical files that you had sent over to our office and I’ve examined the preliminary blood tests you had done at our office last week. I just need to ask you a few questions, and then we’ll do a quick examination to help me try to get to the cause of your fertility issues.”

“Sure, I’ll answer the best I can. Was anything missing from my medical records?” Jane asked, concerned that she had forgotten to send something the doctor would need. “We’ve been trying to get pregnant for two years and nothing has worked. We both want kids so badly, and a friend recommended you, so I hope you can help us.”

Dr. Klein smiled kindly at Jane and Brian. They were young, and there was no obvious explanation in Jane’s file for her infertility. Dr. Klein’s initial notes about Jane’s medical history and recent blood tests included the following:

• 28-year-old Caucasian female.

• Diagnosed at 14 with Irritable Bowel Syndrome (IBS).

• Diagnosed with anemia in her early 20s; current hemoglobin levels at 7 gm/dl.

• Active lifestyle until past year; used to exercise daily and run half marathons until recent joint pain hindered her.

• Broken wrist last year after a minor fall.

• No history or abnormal pelvic exams or PAP smears.

• Hormone levels (estrogen, progesterone, LH, and FSH) in normal ranges.

• Patient reports her menstrual cycles are not very regular.

• Positive for several classes of autoantibodies.

  Looking up from his notes, Dr. Klein asked, “Jane, have you been able to control your IBS symptoms? Do you still have bouts of diarrhea or constipation despite a healthy diet?”

  “I’ve never really been able to control the symptoms as much as I’d like,” Jane said. “It’s something I’ve just learned
  to live with. I’ve tried all sorts of different diets and nothing seems to help. I felt a little better on the new low carbohydrate diet that people have been talking about, but it was really hard to stick to.” She looked questioningly at her husband, silently wondering what her stomach problems could have to do with her fertility issues.

“When Good Antibodies Go Bad” by Cozine and Gripka Page 1

“One of the things we test your blood for are the presence of autoantibodies. Recent studies indicate that women with infertility problems may have higher levels of autoantibodies in their blood. Your test results show that you are positive for several autoantibodies at levels higher than we would expect in a healthy female.” Dr. Klein could see the obvious confusion on Jane and Brian’s faces. “Do either of you know what antibodies or autoantibodies are?”

Questions

1. Pretend you are Dr. Klein and first explain what an antibody is to Jane and Brian.

2. Relate the basic definition of an antibody to explain an autoantibody in terms Jane and Brian will be able to understand.

3. What are three examples of autoantibodies that can be detected and the diseases they are associated with?

4. Given her digestive problems and the presence of autoantibodies (indicating that her condition is autoimmune), what are some possible diseases (besides IBS) that Jane might have?

Part II – Getting the Diagnosis Right

“I don’t understand,” Jane said looking at Dr. Klein. “What does my immune system have to do with my infertility issues?”

“Infertility can unfortunately be a complication of several autoimmune diseases. Given your history of gastrointestinal issues along with the presence of several specific autoantibodies I believe you may have Celiac Disease. I would like you to see a gastroenterologist to confirm the diagnosis,” Dr. Klein explained.

Brian interrupted, “But I thought Jane has irritable bowel syndrome? Did the IBS cause the Celiac Disease?”

“No, I fear that Jane may have been misdiagnosed with IBS when all along she had Celiac Disease. The two can have similar symptoms, but there are tests that can definitively identify Celiac Disease,” Dr. Klein explained.

“If I get treated for Celiac Disease, will I be able to have a baby?” Jane asked fearfully.

Dr. Klein patted Jane’s hand, “Let’s get the test results back and make sure we understand the cause of your intestinal issues, and then we’ll concentrate on your infertility.”

“I don’t think I understand,” Jane said looking from Brian to Dr. Klein. “You explained to us what an antibody is and I thought they were good, so why would they cause disease? I don’t know how I could have gotten an autoimmune disease in the first place. I’m pretty healthy. I exercise and try to eat right. What could I have done differently?”

Questions

1. Briefly describe what Celiac Disease is.

2. How is Celiac Disease different from gluten intolerance or sensitivity?

3. What specific autoantibodies are tested for in Celiac Disease? What other diagnostic tests will be performed on Jane?

4. Suppose that Jane stopped all gluten intake before her autoantibody tests were performed. How do you think this change in diet would affect her test results and diagnosis?

5. Jane is concerned that she could have prevented herself from getting an autoimmune disease. What are some risk factors for autoimmune diseases in general? Looking at these risk factors, could Jane have done anything to prevent the development of her disease?

6. What hypotheses are often used to explain the trigger/onset of autoimmune diseases?

Think of a time when you were involved in strategic decision making. This could be a business situation or a personal situation. It could be anything from purchasing inputs for a manufacturing firm to trying to divide up household chores. Strategy is huge in sports – Should we punt or go for it on 4^th?

When I purchased my car. I looked for the type and color of the car first in the city and online. I looked for a certain price range and distance. I then contacted my credit union to see exactly how much I qualified for and then I began the more serious process by test driving cars here in the city and speaking with salesman over the phone from online cites out of the city. Of course let me not forget I also looked for the cars with miles under 50,000.

Discuss questions

1.Discuss your dominant strategy for the situation.

2.What was the other person’s dominant strategy?

3.Was the outcome a Nash equilibrium? Why or why not?

Please answer each part of the questions and use game theory terminology. Make sure that you have an adversarial situation with at least two parties.

Have fun with this! These are useful tools to understand for your everyday life!

Game Theory Help!

For questions 1-3, you will need to determine whether or not each firm has a dominant strategy in order to know if the game is a Prisoners’ Dilemma.

A dominant strategy is one in which the agent (the firm, in this case) would have no incentive to change its strategy regardless of what the other agent does. I like to do this...

1. Pretend that Lowe’s chooses first. Write down Lowe's best response to each of Home Depot's choices. That is, what should Lowe’s do if Home Depot picks “cooperate” and what should Lowe’s do if Home Depot picks “don’t cooperate”.

2. Do the same for Home Depot choosing its strategy first. Write down Lowe's best response.

3. If you get that the firm always chooses “cooperate” for example, then “cooperate” is the dominant strategy. If the firm always chooses “don’t cooperate”, then “don’t cooperate” is its dominant strategy. If you get one of each chosen, there is no dominant strategy for that firm.

Questions 4-7 are very similar, but you will need to determine the Nash and strategically stable outcome (if there is one)

1. Pretend that the Saint Petersburg Times chooses first. Write down Tampa's best response to each of SPT's choices. That is, what should Tampa do if SPT picks low price and what should Tampa do if SPT picks high.

2. Do the same for Tampa choosing its price first. Write down SPT's best response.

3. If you get that the firm always chooses Low, for example, then Low is the dominant strategy. If the firm always chooses High, then High is its dominant strategy. If you get one of each chosen, there is no dominant strategy for that firm.

4. To get the Nash Equilibrium, for each firm, ask yourself, "What is the worst case scenario for this firm." Then, pick the opposite strategy. Put a little dot in that square (the opposite of the worst case scenario). Do the same for the other firm. If there is a Nash, it will be the square with 2 dots.

5. Finally, the Nash equilibrium is the only strategically stable outcome. Both firms are doing the best that they can, so there is no incentive for them to deviate from that strategy.