ACC 206 Week Two Assignment

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Description

ACC
206 Week Two Assignment

Please
complete the following exercises below in either Excel or a word document (but
must be single document). You must show your work where appropriate (leaving
the calculations within Excel cells is acceptable). Save the document, and
submit it in theappropriate
week using the Assignment Submission button.

1. Analysis
of stockholders’ equity

Star
Corporation issued both common and preferred stock during 20X6. The
stockholders’ equity sections of the company’s balance sheets at the end of
20X6 and 20X5 follow:

20X6

20X5

Preferred stock,
$100 par value, 10%

$580,000

$500,000

Common stock, $10
par value

2,350,000

1,750,000

Paid-in capital in
excess of par value

Preferred

24,000

—

Common

4,620,000

3,600,000

Retained earnings

8,470,000

6,920,000

Total stockholders’
equity

$16,044,000

$12,770,000

a.
Compute the number of preferred shares
that were issued during 20X6.

b.
Calculate the average issue price
of the common stock sold in 20X6.

c.
By what amount did the company’s
paid-in capital increase during 20X6?

d.
Did Star’s total legal capital
increase or decrease during 20X6? By what amount?

2. Bond
computations: Straight-line amortization

Southlake Corporation issued $900,000
of 8% bonds on March 1, 20X1. The bonds pay interest on March 1 and September 1
and mature in 10 years. Assume the independent cases that follow.

·
Case A—The bonds are issued at 100.

·
Case B—The bonds are issued at 96.

·
Case C—The bonds are issued at 105.

Southlake uses the straight-line
method of amortization.

Instructions:

Complete the following table:

Case A

Case B

Case C

  1. Cash inflow on the issuance date

_______

_______

_______

  1. Total
    cash outflow through maturity

_______

_______

_______

  1. Total
    borrowing cost over the life of the bond issue

_______

_______

_______

  1. Interest
    expense for the year ended December 31, 20X1

_______

_______

_______

  1. Amortization
    for the year ended December 31, 20X1

_______

_______

_______

  1. Unamortized
    premium as of December 31, 20X1

_______

_______

_______

  1. Unamortized
    discount as of December 31, 20X1

_______

_______

_______

  1. Bond
    carrying value as of December 31, 20X1

_______

_______

_______

3. Definitions of manufacturing concepts
Interstate Manufacturing produces brass fasteners and incurred the following
costs for the year just ended:

Materials
and supplies used

Brass $75,000

Repair
parts 16,000

Machine
lubricants 9,000

Wages and
salaries Machine operators 128,000

Production
supervisors 64,000

Maintenance
personnel 41,000

Other
factory overhead Variable 35,000

Fixed 46,000

Sales
commissions 20,000

Compute:

a. Total
direct materials consumed

b. Total
direct labor

c. Total
prime cost

d.
Total conversion cost

4. Scheduleof cost of goods manufactured, income statement

The
following information was taken from the ledger of Jefferson Industries, Inc.:

Direct labor

$85,000

Administrative
expenses

$59,000

Selling expenses

34,000

Work in. process:

Sales

300,000

Jan. 1

29,000

Finished goods

Dec. 31

21,000

Jan. 1

115,000

Direct material
purchases

88,000

Dec. 31

131,000

Depreciation:
factory

18,000

Raw (direct)
materials on hand

Indirect materials
used

10,000

Jan. 1

31,000

Indirect labor

24,000

Dec. 31

40,000

Factory taxes

8,000

Factory utilities

11,000

Prepare the following:

a. A
schedule of cost of goods manufactured for the year ended December 31.

b. An
income statement for the year ended December 31.

5. Manufacturing statements and cost
behavior

Tampa Foundry began operations during the
current year, manufacturing various products for industrial use. One such
product is light-gauge aluminum, which the company sells for $36 per roll. Cost
information for the year just ended follows.

Per Unit

Variable Cost

Fixed Cost

Direct materials

$4.50

$ —

Direct labor

6.5

—

Factory overhead

9

50,000

Selling

—

70,000

Administrative

—

135,000

Production and sales totaled 20,000 rolls and
17,000 rolls, respectively There is no work in process. Tampa carries its
finished goods inventory at the average unit cost of production.

Instructions:

a. Determine
the cost of the finished goods inventory of light-gauge aluminum.

b. Prepare
an income statement for the current year ended December 31

c. On
the basis of the information presented:

1. Does
it appear that the company pays commissions to its sales staff? Explain.

2.
What is the likely effect on the $4.50 unit
cost of direct materials if next year’s production increases? Why?

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ACC 206 Week Two Assignment

$21.00

Description

ACC
206 Week Two Assignment

Please
complete the following exercises below in either Excel or a word document (but
must be single document). You must show your work where appropriate (leaving
the calculations within Excel cells is acceptable). Save the document, and
submit it in the
appropriate
week using the Assignment Submission button.

1.Analysis
of stockholders’ equity

Star
Corporation issued both common and preferred stock during 20X6. The
stockholders’ equity sections of the company’s balance sheets at the end of
20X6 and 20X5 follow:
















































20X6



20X5



Preferred stock,
$100 par value, 10%



$580,000



$500,000



Common stock, $10
par value



2,350,000



1,750,000



Paid-in capital in
excess of par value



Preferred



24,000



—



Common



4,620,000



3,600,000



Retained earnings



8,470,000



6,920,000



Total stockholders’
equity



$16,044,000



$12,770,000


  1. Compute the number of preferred shares
    that were issued during 20X6.

    580,000/$100= 5800 preferred shares issued.

  2. Calculate the average issue price
    of the common stock sold in 20X6.

  3. By what amount did the company’s
    paid-in capital increase during 20X6?

  4. Did Star’s total legal capital
    increase or decrease during 20X6? By what amount?

    2. Bond
    computations: Straight-line amortization

    Southlake Corporation issued $900,000
    of 8% bonds on March 1, 20X1. The bonds pay interest on March 1 and September 1
    and mature in 10 years. Assume the independent cases that follow.

  • Case A—The bonds are issued at 100.

  • Case B—The bonds are issued at 96.

  • Case C—The bonds are issued at 105.

    Southlake uses the straight-line
    method of amortization.

    Instructions:































































Complete the following table:



Case A



Case B



Case C




  1. Cash inflow on the issuance date



_______



_______



_______




  1. Total
    cash outflow through maturity



_______



_______



_______




  1. Total
    borrowing cost over the life of the bond issue



_______



_______



_______




  1. Interest
    expense for the year ended December 31, 20X1



_______



_______



_______




  1. Amortization
    for the year ended December 31, 20X1



_______



_______



_______




  1. Unamortized
    premium as of December 31, 20X1



_______



_______



_______




  1. Unamortized
    discount as of December 31, 20X1



_______



_______



_______




  1. Bond
    carrying value as of December 31, 20X1



_______



_______



_______


3. Definitions of manufacturing concepts

Interstate Manufacturing produces brass fasteners and incurred the following
costs for the year just ended:

Materials
and supplies used

Brass $75,000

Repair
parts
16,000

Machine
lubricants
9,000

Wages and
salaries Machine operators
128,000

Production
supervisors
64,000

Maintenance
personnel
41,000

Other
factory overhead Variable
35,000

Fixed 46,000

Sales
commissions
20,000

Compute:

  1. Total
    direct materials consumed

  2. Total
    direct labor

  3. Total
    prime cost

  4. Total conversion cost

    4. Scheduleof cost of goods manufactured, income statement

    The
    following information was taken from the ledger of Jefferson Industries, Inc.:







































































Direct labor



$85,000



Administrative
expenses



$59,000



Selling expenses



34,000



Work in. process:



Sales



300,000



Jan. 1



29,000



Finished goods



Dec. 31



21,000



Jan. 1



115,000



Direct material
purchases



88,000



Dec. 31



131,000



Depreciation:
factory



18,000



Raw (direct)
materials on hand



Indirect materials
used



10,000



Jan. 1



31,000



Indirect labor



24,000



Dec. 31



40,000



Factory taxes



8,000



Factory utilities



11,000


Prepare the following:

  1. A
    schedule of cost of goods manufactured for the year ended December 31.

  2. An
    income statement for the year ended December 31.




    5. Manufacturing
    statements and cost behavior

    Tampa Foundry began operations during the
    current year, manufacturing various products for industrial use. One such
    product is light-gauge aluminum, which the company sells for $36 per roll. Cost
    information for the year just ended follows.

































Per Unit



Variable Cost



Fixed Cost



Direct materials



$4.50



$ —



Direct labor



6.5



—



Factory overhead



9



50,000



Selling



—



70,000



Administrative



—



135,000


Production and sales totaled 20,000 rolls and
17,000 rolls, respectively There is no work in process. Tampa carries its
finished goods inventory at the average unit cost of production.

Instructions:

  1. Determine
    the cost of the finished goods inventory of light-gauge aluminum.

  2. Prepare
    an income statement for the current year ended December 31

  3. On
    the basis of the information presented:

  1. Does
    it appear that the company pays commissions to its sales staff? Explain.

  2. What is the likely effect on the $4.50 unit
    cost of direct materials if next year’s production increases? Why?

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ACC 206 Week Two Assignment

$26.00

Description

ACC
206 Week Two Assignment

Please
complete the following exercises below in either Excel or a word document (but
must be single document). You must show your work where appropriate (leaving
the calculations within Excel cells is acceptable). Save the document, and
submit it in theappropriate
week using the Assignment Submission button.

1. Analysis of stockholders’ equity

Star
Corporation issued both common and preferred stock during 20X6. The
stockholders’ equity sections of the company’s balance sheets at the end of
20X6 and 20X5 follow:

20X6

20X5

Preferred
stock, $100 par value, 10%

$580,000

$500,000

Common
stock, $10 par value

2,350,000

1,750,000

Paid-in
capital in excess of par value

Preferred

24,000

—

Common

4,620,000

3,600,000

Retained
earnings

8,470,000

6,920,000

Total
stockholders’ equity

$16,044,000

$12,770,000

a.
Compute the number of preferred shares
that were issued during 20X6.

b.
Calculate the average issue price
of the common stock sold in 20X6.

c.
By what amount did the company’s
paid-in capital increase during 20X6?

d.
Did Star’s total legal capital
increase or decrease during 20X6? By what amount?

2. Bond
computations: Straight-line amortization

Southlake Corporation issued $900,000
of 8% bonds on March 1, 20X1. The bonds pay interest on March 1 and September 1
and mature in 10 years. Assume the independent cases that follow.

·
Case A—The bonds are issued at 100.

·
Case B—The bonds are issued at 96.

·
Case C—The bonds are issued at 105.

Southlake uses the straight-line
method of amortization.

Instructions:

Complete the following table:

Case A

Case B

Case C

  1. Cash inflow on the issuance date

_______

_______

_______

  1. Total cash outflow through
    maturity

_______

_______

_______

  1. Total borrowing cost over
    the life of the bond issue

_______

_______

_______

  1. Interest expense for the
    year ended December 31, 20X1

_______

_______

_______

  1. Amortization for the year
    ended December 31, 20X1

_______

_______

_______

  1. Unamortized premium as of
    December 31, 20X1

_______

_______

_______

  1. Unamortized discount as of
    December 31, 20X1

_______

_______

_______

  1. Bond carrying value as of
    December 31, 20X1

_______

_______

_______

3. Definitions of manufacturing concepts

Interstate Manufacturing produces brass fasteners and incurred the following
costs for the year just ended:

Materials
and supplies used

Brass $75,000

Repair
parts 16,000

Machine
lubricants 9,000

Wages and
salaries Machine operators 128,000

Production
supervisors 64,000

Maintenance
personnel 41,000

Other
factory overhead Variable 35,000

Fixed 46,000

Sales
commissions 20,000

Compute:

a.
Total direct materials consumed

b.
Total direct labor

c.
Total prime cost

d.
Total conversion cost

4.
Schedule
of
cost of goods manufactured, income statement

The following information was
taken from the ledger of Jefferson Industries, Inc.:

Direct
labor

$85,000

Administrative
expenses

$59,000

Selling
expenses

34,000

Work in.
process:

Sales

300,000

Jan. 1

29,000

Finished
goods

Dec. 31

21,000

Jan. 1

115,000

Direct
material purchases

88,000

Dec. 31

131,000

Depreciation:
factory

18,000

Raw
(direct) materials on hand

Indirect
materials used

10,000

Jan. 1

31,000

Indirect
labor

24,000

Dec. 31

40,000

Factory
taxes

8,000

Factory
utilities

11,000

Prepare the following:

a.
A schedule of cost of goods manufactured for
the year ended December 31.

b.
An income statement for the year ended
December 31.

5. Manufacturing statements and cost
behavior

Tampa Foundry began operations during the
current year, manufacturing various products for industrial use. One such
product is light-gauge aluminum, which the company sells for $36 per roll. Cost
information for the year just ended follows.

Per Unit

Variable
Cost

Fixed
Cost

Direct materials

$4.50

$ —

Direct labor

6.5

—

Factory overhead

9

50,000

Selling

—

70,000

Administrative

—

135,000

Production and sales totaled 20,000 rolls and
17,000 rolls, respectively There is no work in process. Tampa carries its
finished goods inventory at the average unit cost of production.

Instructions:

a.
Determine the cost of the finished goods
inventory of light-gauge aluminum.

b.
Prepare an income statement for the current
year ended December 31

c.
On the basis of the information presented:

1.
Does it appear that the company pays
commissions to its sales staff? Explain.

2.
What is the likely effect on the $4.50 unit
cost of direct materials if next year’s production increases? Why?

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ACC 206 – Week Two Assignment

$21.00

Description

Star Corporation issued both common and preferred stock during 20X6. The stockholders’ equity sections of the company’s balance sheets at the end of 20X6 and 20X5 follow:+
20X6 20X5
Preferred stock, $100 par value, 10% $580,000 $500,000
Common stock, $10 par value 2,350,000 1,750,000

Paid-in capital in excess of par value
Preferred 24,000 —
Common 4,620,000 3,600,000
Retained earnings 8,470,000 6,920,000
Total stockholders’ equity $16,044,000 $12,770,000

a. Compute the number of preferred shares that were issued during 20X6.
b. Calculate the average issue price of the common stock sold in 20X6.
c. By what amount did the company’s paid-in capital increase during 20X6?
d. Did Star’s total legal capital increase or decrease during 20X6? By what amount?

2. Southlake Corporation issued $900,000 of 8% bonds on March 1, 20X1. The bonds pay interest on March 1 and September 1 and mature in 10 years. Assume the independent cases that follow.
• Case A—The bonds are issued at 100.
• Case B—The bonds are issued at 96.
• Case C—The bonds are issued at 105.

Southlake uses the straight-line method of amortization.

Instructions:
Complete the following table:
Case A Case B Case C
a. Cash inflow on the issuance date _______ _______ _______
b. Total cash outflow through maturity _______ _______ _______
c. Total borrowing cost over the life of the bond issue _______ _______ _______
d. Interest expense for the year ended December 31, 20X1 _______ _______ _______
e. Amortization for the year ended December 31, 20X1 _______ _______ _______
f. Unamortized premium as of December 31, 20X1 _______ _______ _______
g. Unamortized discount as of December 31, 20X1 _______ _______ _______
h. Bond carrying value as of December 31, 20X1 _______ _______ _______

3. Interstate Manufacturing produces brass fasteners and incurred the following costs for the year just ended:
Materials and supplies used
Brass $75,000
Repair parts 16,000
Machine lubricants 9,000
Wages and salaries Machine operators 128,000
Production supervisors 64,000
Maintenance personnel 41,000
Other factory overhead Variable 35,000
Fixed 46,000
Sales commissions 20,000

Compute:
a. Total direct materials consumed
b. Total direct labor
c. Total prime cost
d. Total conversion cost

4.The following information was taken from the ledger of Jefferson Industries, Inc.:
Direct labor $85,000 Administrative expenses $59,000
Selling expenses 34,000 Work in. process:
Sales 300,000 Jan. 1 29,000
Finished goods Dec. 31 21,000
Jan. 1 115,000 Direct material purchases 88,000
Dec. 31 131,000 Depreciation: factory 18,000
Raw (direct) materials on hand Indirect materials used 10,000
Jan. 1 31,000 Indirect labor 24,000
Dec. 31 40,000 Factory taxes 8,000
Factory utilities 11,000
Prepare the following:
a. A schedule of cost of goods manufactured for the year ended December 31.
b. An income statement for the year ended December 31.

5. Manufacturing statements and cost behavior
Tampa Foundry began operations during the current year, manufacturing various products for industrial use. One such product is light-gauge aluminum, which the company sells for $36 per roll. Cost information for the year just ended follows.
Per Unit Variable Cost Fixed Cost
Direct materials $4.50 $ —
Direct labor 6.5 —
Factory overhead 9 50,000
Selling — 70,000
Administrative — 135,000

Production and sales totaled 20,000 rolls and 17,000 rolls, respectively There is no work in process. Tampa carries its finished goods inventory at the average unit cost of production.
Instructions:
a. Determine the cost of the finished goods inventory of light-gauge aluminum.
b. Prepare an income statement for the current year ended December 31
c. On the basis of the information presented:
1. Does it appear that the company pays commissions to its sales staff? Explain.
2. What is the likely effect on the $4.50 unit cost of direct materials if next year’s production increases? Why?

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