Primare Corporation has provided the following data concerning last month’s manufacturing operations.

Required:

1. Prepare a schedule of cost of goods manufactured for the month.

2. Prepare a schedule of cost of goods sold for the month. Assume the underapplied or overapplied overhead is closed to Cost of Goods Sold.

Prepare a schedule of cost of goods manufactured for the month.

Prepare a schedule of cost of goods sold for the month. Assume the underapplied or overapplied overhead is closed to Cost of Goods Sold.

Assume during the quarter ending December 31 of the current year, Cox Security Systems had 13 weekly paydays and three monthly paydays. The names of the employees of Cox Security Systems and their regular salaries are shown in the following payroll register. Note that Hall and Short are paid monthly on the last payday, while all others are paid weekly.

*Monthly

In addition to the regular salaries, the company pays an annual bonus based on the amount of earnings for the year. For the current year, the bonus amounts to 8% of the annual salary paid to each employee. The bonus is to be paid along with the regular salaries on December 28, but the amount of the bonus and the amount of the regular salary will be shown separately on each employee's earnings statement. Assume that all employees received their regular salary during the entire year.

The payroll register for the period ending December 28th is shown reflecting the following for each employee:

The wage-bracket method is used to withhold federal income tax from the regular salaries.

A flat 25% is withheld on the annual bonus.

Total salaries and bonuses are subject to a 2% state income tax and a 1% city income tax.

For Period Ending December 28, 20--

Complete the following form to show:

a. Total earnings paid during the quarter, including both the regular and the supplemental earnings.

b. Total amount of FICA taxes withheld during the quarter.

c. Total amount of federal income taxes withheld during the quarter.

d. Total amount of state income taxes withheld during the quarter.

e. Total amount of city income taxes withheld during the quarter.

f. Total net amount paid each employee during the quarter.

When computing withholding, round each amount to the nearest cent. If applicable, use rounded amount in subsequent computations. And use final rounded amount to determine the total.

the Wage-Bracket Method Tables.

Part 1: understanding the AS-AD framework

Understand how aggregate supply and aggregate demand determine macroeconomic equilibrium.

1) Draw AD and AS curves where macroeconomic equilibrium occurs at an output of $25 trillion. On your graph, indicate the equilibrium price level (you can assign an exact value). Indicate on the graph where macroeconomic equilibrium occurs. Make sure to label each part of the graph.

Part 2: applying the AS-AD framework

Evaluate the forces that shape the total quantity of goods and services that purchasers want to buy.

Evaluate the forces that shape the total quantity of goods and services that businesses want to supply.

2-1) For each of the following, using a graph to show the shift in aggregate demand and explain your reasoning.

a) How do poor numbers from several economic indicators (for example, today the retail sales for March 2020 were much lower and the manufacturing numbers were also lower) affect businesses?

b) Congress passes the relief package of $2 trillion dollars (Payment Protection Plan) and the Fed promised to add additional $2.3 trillion dollars the payments.

c) The U.S. government eliminates the tariffs it charges on goods imported from China (like recently medical supplies).

2-2) Illustrate how each of the following will impact aggregate supply and explain your reasoning.

a) The implementation of artificial intelligence in manufacturing.

b) The novel Coronavirus has put tens of millions workers out of work.

c) The U.S. dollar depreciates relative to the Chinese yuan.

2-3) Forecast how the economy will respond to changing conditions.

a) To combat the current recession, the U.S. government enacts expansionary fiscal policy (well, although the U.S. did announce some infrastructure projects, the example here isn't really a fact, I'm making up this policy for you to practice with the model.), which increase government spending by $2 trillion dollars. Illustrate the impact of this expansionary fiscal policy on the U.S. economy using an AS-AD graph. How will the price level change?

b) The Fed quickly announced a rate cut (the federal funds rate) to basically zero on March 13 amid concerns of a looming recession due to the novel Coronavirus. And the latest data on consumer confidence and business confidence dropped significantly. Forecast how prices and output will change by drawing an AS-AD graph, and explain your answers.

Cost of Goods Sold, Profit margin, and Net Income for a Manufacturing Company

The following information is available for Gonzalez Manufacturing Company for the month ending July 31, 2016:

For the month ended July 31, 2016, determine Gonzalez's (a) cost of goods sold, (b) gross profit, and (c) net income.

Labels & Amount descriptions

Finished goods inventory, July 1, 2016

Finished goods inventory, July 31, 2016

Sales

Selling Expenses

Cost of finished goods available for sale

Cost of goods manufactured

Cost of goods sold

Gross profit

Administrative expenses

Net Income

Less administrative expenses

Less Finished goods inventory, July 1, 2016

Less Finished goods inventory, July 31, 2016

1. (a)

   Gonzalez Manufacturing Company
   Cost of Goods Sold
   July 31, 2016
   	$
   	$
   	$

   (b)

   Gonzalez Manufacturing Company
   Gross Profit
   July 31, 2016
   	$
   	$

   (c)

   Gonzalez Manufacturing Company
   Net Income
   July 31, 2016
   		$_________
   Operating expenses:
   	$ ______
   	______
   Total operating expenses		______
   		$______

The transactions relating to the formation of Blue Co. Stores Inc., and its first month of operations follow.

1. The firm was organized and the stockholders invested cash of $8,700.
2. The firm borrowed $5,500 from the bank; a short-term note was signed.
3. Display cases and other store equipment costing $1,750 were purchased for cash. The original list price of the equipment was $1,940, but a discount was received because the seller was having a sale.
4. A store location was rented, and $1,400 was paid for the first month's rent.
5. Inventory of $16,000 was purchased; $8,200 cash was paid to the suppliers, and the balance will be paid within 45 days.
6. During the first week of operations, merchandise that had cost $3,900 was sold for $5,800 cash.
7. A newspaper ad costing $120 was arranged for; it ran during the second week of the store's operations. The ad will be paid for in the next month.
8. Additional inventory costing $4,250 was purchased; cash of $1,350 was paid, and the balance is due in 30 days.
9. In the last three weeks of the first month, sales totaled $13,750, of which $9,100 was sold on account. The cost of the goods sold totaled $9,200.
10. Employee wages for the month totaled $2,000; these will be paid during the first week of the next month.
11. The firm collected a total of $3,450 from the sales on account recorded in transaction i.
12. The firm paid a total of $4,900 of the amount owed to suppliers from transaction e.

Required:

1. Record each transaction in the appropriate columns. Indicate the financial statement effect.
2. Calculate the total assets, liabilities, and stockholders' equity at the end of the month and calculate the amount of net income for the month.
3. After completing parts a through l, prepare an income statement for Blue Co. Stores Inc. for the month presented and a balance sheet at the end of the month.

ThreePoint Sports Inc. manufactures basketballs for the Women’s National Basketball Association (WNBA). For the first 6 months of 2020, the company reported the following operating results while operating at 80% of plant capacity and producing 118,800 units.

Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $227,000.

In July, normally a slack manufacturing month, ThreePoint Sports receives a special order for 10,000 basketballs at $29 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.73 per unit because of shipping costs but would not increase fixed costs and expenses.

(a) Prepare an incremental analysis for the special order. (Round all per unit computations to 2 decimal places, e.g. 15.25. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

(b) Should ThreePoint Sports Inc. accept the special order?

                                                                      NoYes

eTextbook and Media

What is the minimum selling price on the special order to produce net income of $5.08 per ball? (Round answer to 2 decimal places, e.g. 15.25.)

On July 31, 2016, the end of the first month of operations, Rhys Company prepared the following income statement, based on the absorption costing concept:

B. Reconcile the absorption costing income from operations of $1,489,250 with the variable costing income from operations previously determined.

You have just been appointed as the financial accountant at Caulfield Warehouse Direct (CWD), an electrical company. CWD makes all sales under terms of Free On Board (FOB) shipping point. FOB shipping point specifies that the title and responsibility of goods transfer from the seller to the buyer when the goods are placed on the delivery vehicle. During your first week, you have been asked to conduct a review of all income items as the Australian Tax Office wants to know details of all income in the last financial year, which ended on 31 December. During your review, you became aware that CC had post-dated a significant sales transaction of $500,000 (goods were delivered on 27 December, but invoiced on 3 January). Post-dating the sales transaction would lower CWD’s taxable income. You approached the owner, Megan Simpson, and discussed about it. Megan asked you to ignore the finding because it is part of the company’s policy. After all, there was a difference of only one week between 27 December and 3 January.

1. Explain the ethical issue (or dilemma) that you face.
2. Identify four (4) parties (stakeholders) that may be harmed.
3. Discuss three (3) specific interests that are in conflict [HINT: For each, you must identify pairs of stakeholders whose interests might be in conflict and explain why].
4. What are your options and the consequences of each option? Specify two (2) options, and for each option, explain the impact of that option on the stakeholders.

ThreePoint Sports Inc. manufactures basketballs for the Women’s National Basketball Association (WNBA). For the first 6 months of 2020, the company reported the following operating results while operating at 80% of plant capacity and producing 119,700 units.

Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $247,000.

In July, normally a slack manufacturing month, ThreePoint Sports receives a special order for 10,000 basketballs at $29 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.75 per unit because of shipping costs but would not increase fixed costs and expenses.

(a) Prepare an incremental analysis for the special order. (Round all per unit computations to 2 decimal places, e.g. 15.25. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

(b) Should ThreePoint Sports Inc. accept the special order?

No OR Yes

What is the minimum selling price on the special order to produce net income of $5.09 per ball? (Round answer to 2 decimal places, e.g. 15.25.)