accounting

$2.00

Description

Kirkaid Company recorded the following transactions for the just completed month:

a.

$118,000 in raw materials were requisitioned for use in production. Of this amount, $89,000 was for direct materials and the remainder was for indirect materials.

b.

Total labor wages of $142,000 were incurred. Of this amount, $122,000 was for direct labor and the remainder was for indirect labor.

c.

Additional actual manufacturing overhead costs of $214,000 were incurred.

d. A total of $268,000 in manufacturing overhead was applied to jobs.

Required:
Determine the underapplied or overapplied overhead for the month.

Reviews

There are no reviews yet.

Be the first to review “accounting”

Your email address will not be published. Required fields are marked *

accounting

$11.00

Description

Leila Company began an operating lease arrangement with Debco Industries, which was slated to begin on January 1, at monthly lease payments of $10,000. However, Debco?s negligence prevented Leila from moving in on time?since it failed to clean up the place adequately enough to earn a Certificate of Occupancy from the township. Thus, on January 1, Leila spent $5,000 for leasehold improvements, which enabled her to obtain the needed Certificate of Occupancy on April 1. In any event, Leila paid Debco all the required $30,000 lease payments and has decided not to pursue legal action for the ?un-ready? building. However, can Leila defer the $30,000 January-March lease payments over the remaining 33 months of the lease contract?

Reviews

There are no reviews yet.

Be the first to review “accounting”

Your email address will not be published. Required fields are marked *

Accounting

$1.00

Description

I need to know what asset acquisition strategy in accounting is?

Reviews

There are no reviews yet.

Be the first to review “Accounting”

Your email address will not be published. Required fields are marked *

Accounting

$11.00

Description

Take the role of an investment analyst at Prudential Bache. It is your job to recommend investments for your clients. The only information you have are some ratio values for two companies in the Pharmaceutical industry. Write a report to Prudential Bache’s investment committee. Recommend one company’s stock over the other. State the reasons for your recommendation

Reviews

There are no reviews yet.

Be the first to review “Accounting”

Your email address will not be published. Required fields are marked *

Accounting

$158.00

Description

I would like help in this accounting subject.  Thank you in advance.

Reviews

There are no reviews yet.

Be the first to review “Accounting”

Your email address will not be published. Required fields are marked *

accounting

$32.00

Description

I do not understand this, does anyone else?

Reviews

There are no reviews yet.

Be the first to review “accounting”

Your email address will not be published. Required fields are marked *

accounting

$21.00

Description

Intellectual property assets are

A. depreciated.

B. depleted.

C. amortized.

D. expensed.

Under MACRS, the salvage value is

A. added to the straight-line
depreciation.

B. subtracted from the cost of the
asset.

C. ignored.

D. added to the cost of the asset.

Salvage value was ignored when
originally calculating the units-of-production depreciation. This error would
cause

A. the period’s net income to be
overstated.

B. the period’s net income to be understated.

C. the period end assets to be
overstated.

D. None of the above

Amortization of a patent was
ignored. This error would cause

A. the period’s net income to be overstated.

B. the period’s net income to be
understated.

C. the period end assets to be
understated.

D. None of the above

The depreciation method that bases
the expense on the level of use instead of the passage of time is the _______
method.

A. units-of-production

B. straight-line

C. modified accelerated cost
recovery

D. double-declining-balance

According to the MACRS tax rate
table, which of the following classes uses straight-line depreciation?

A. Residential rental property

B. Automobiles

C. Railroad tracks

D. Race horses

A coal mine was acquired for
$2,000,000. No salvage value was expected, and the company expects to mine
2,000,000 tons of coal. During the first year, it mines and sells 220,000 tons
of coal. The depletion expense is

A. $2,220,000.

B. $2,000,000.

C. $220,000.

D. $24,200.

The cost of a plant asset was
increased for the payment of this year’s insurance premium. This error would
cause

A. the period’s net income to be
overstated.

B. the period’s net income to be understated.

C. the period’s end assets to be
understated.

D. None of the above

An example of an intangible asset is

A. a patent.

B. a building.

C. assembly cost.

D. land.

Which of the following is an example
of a land improvement?

A. Shrubbery

B. Fence

C. Driveway

D. All of the above

Using MACRS rates for a three-,
five-, seven-, and ten-year property, what is the percentage for the
depreciable rate?

A. 200%

B. 150%

C. 125%

D. 100%

The entry to record the cost of a
property, plant, or equipment asset would include

A. acquisition cost.

B. freight.

C. installation.

D. All of the above

Which depreciation method is used to
determine depreciation for income tax purposes?

A. Straight-line

B. Double-declining balance

C. Units-of-production

D. MACRS

The write-off of intangible assets
is called

A. depreciation.

B. depletion.

C. amortization.

D. deterioration

Which of the following is a nondepreciable
asset?

A. Desk chairs

B. Land

C. Computer

D. Building

A depreciation method that allocates
depreciation of a plant asset based on the Tax Act of 1989 is the _______
method.

A. straight-line

B. units-of-production

C. modified accelerated cost recovery

D. double-declining-balance

The credit portion of the adjustment
for the depletion of a coal mine was credited to the Coal Mine account. This
error would cause

A. the period’s net income to be overstated.

B. the period’s net income to be
understated.

C. the period end assets to be
overstated.

D. None of the above

When calculating declining-balance
depreciation, the straight-line rate was used instead of double the
straight-line rate. In the first year of ownership, this error would cause

A. the period’s depreciation
expense to be overstated.

B. the period’s depreciation expense to be understated.

C. the period end assets to be
understated.

D. None of the above

The allocation of the cost of a
natural resource is

A. depreciation.

B. depletion.

C. amortization.

D. accrual.

A company purchases a patent for
$50,000. The patent will be amortized over five years. The entry to record the amortization
in the first year is which of the following?

A. Debit Patents $50,000; credit
Cash $50,000

B. Debit Amortization of Patents $10,000; credit Patents $10,000

C. Debit Amortization of Patents
$50,000; credit Patents $50,000

D. Debit Patents $10,000; credit
Amortization of Patents $10,000

Lumber used in construction of a
building is part of

A. raw material costs.

B. labor costs.

C. manufacturing overhead.

D. None of the above

In a manufacturing company, the
purchase of materials on account should be recorded as follows:

A.

Raw Materials Inventory

Accounts Payable

B.

Work-in-Process Inventory

Accounts Payable

C.

Finished Goods Inventory

Accounts Payable

D.

Accounts Payable

Raw Materials Inventory

The formula for cost of goods
manufactured is

A. raw materials plus direct labor
minus overhead plus beginning work-in-process inventory plus ending
work-in-process inventory.

B. raw materials minus direct
labor plus overhead plus beginning work-in-process inventory plus ending
work-in-process inventory.

C. beginning work-in-process plus total manufacturing cost minus
ending work-in-process.

D. raw materials plus direct labor
less overhead plus beginning work-in-process inventory less ending
work-in-process inventory.

Raw material inventory appears on
the

A. balance sheet.

B. income statement.

C. cost of goods manufactured
statement.

D. Both a and c

If direct labor for the month is $40,000,
overhead is applied based on direct labor, annual overhead is $600,000, and
annual direct labor is $1,000,000, what is the entry to charge direct labor to
production?

A. Debit Work-in-Process Inventory
$40,000; credit Payroll $40,000

B. Debit Overhead—Applied $40,000;
credit Work-in-Process Inventory $40,000

C. Debit Work-in-Process Inventory $24,000; credit Overhead—Applied
$24,000

D. Debit Work-in-Process Inventory
$66,000; credit Overhead—Applied $66,000

Omega.com sold 25 jet skis for
$7,000, which cost $5,000. The entry to record the sale would include a

A. credit to Finished Goods
Inventory for $5,000.

B. credit to Sales for $7,000.

C. debit to Cost of Goods Sold for
$5,000.

D. All of the above

During the week ending on November
30, total factory payroll incurred was $6,000. Of this total, 80% was for
direct labor. The entry to record the payroll distribution would include which
of the following?

A. Debit Work-in-Process Inventory $4,800 and Overhead—Control $1,200

B. Debit Work-in-Process Inventory
$6,000

C. Debit Work-in-Process Inventory
$4,800 and Overhead—Applied $1,200

D. Debit Work-in-Process Inventory
$4,800 and Indirect Labor Expense $1,200

The statement of cost of goods
manufactured includes

A. direct labor costs.

B. raw material costs.

C. manufacturing overhead.

D. All of the above

The entry for indirect materials
(such as glue, etc.) requisitioned for use in production is which of the following?

A.

Raw Materials Inventory

Work-in-Process Inventory

B.

Work-in-Process Inventory

Accounts Payable

C.

Work-in-Process Inventory

Raw Materials Inventory

D. None of the above

What is the journal entry to record
the direct labor summarized on the labor distribution report?

A. Debit Finished Goods; credit
Payroll

B. Debit Work-in-Process; credit Payroll

C. Debit Payroll; credit Direct
Labor

D. Debit Payroll; credit Cash

Factory Supplies Expense, Depreciation
Expense—Factory, and Heat, Light, and Power—Factory appear on which section of
the worksheet?

A. Statement of cost of goods manufactured

B. Balance sheet

C. Income statement

D. Statement of cost of goods sold

Candyland completed the
manufacturing process. The entry to transfer the
product to finished goods is which of the following?

A.

Raw MaterialsInventory

Finished Goods Inventory

B.

Finished Goods Inventory

Cost ofGoods Sold

C.

Finished Goods Inventory

Work-in-Process Inventory

D.

FinishedGoods Inventory

Raw Materials Inventory

The entry to record rent expense of
$9,000, supervision expense of $19,000, and depreciation expense of $7,000 to
overhead is which of the following?

A. Debit Overhead—Applied $35,000;
credit Rent Expense $9,000; credit Supervision $19,000; credit Depreciation
Expense $7,000

B. Debit Overhead—Control $35,000;
credit Rent Expense $9,000; credit Supervision $19,000; credit Depreciation Expense
$7,000

C. Debit Overhead—Applied $35,000;
credit Overhead—Control $35,000

d. none
of the above

Journal entries crediting Payroll
and debiting Work-in-Process Inventory are made for

A. administrative salaries.

B. hourly manufacturing labor.

C. foremen’s salaries.

D. raw materials.

Manufacturing overhead includes all
manufacturing costs,

A. including raw materials.

B. including overhead.

C. excluding raw materials and direct labor.

D. None of the above

The entry to record the requisition
of supplies from the storeroom would include which of the following?

A. Debit to Raw Materials; credit
to Work-in-Process

B. Debit to Overhead—Applied;
credit to Overhead—Control

C. Debit to Work-in-Process; credit
to Overhead—Control

D. Debit to Overhead—Control; credit to Supplies
Inventory

Calculate the cost of goods sold
when beginning finished goods inventory equals $70,000, ending finished goods
inventory is $85,000, and cost of goods manufactured is $600,000.

A. $615,000

B. $445,000

C. $685,000

D. $585,000

What is the journal entry to record
issuing raw materials from the storeroom?

A. Debit Raw Materials Inventory;
credit Work-in-Process

B. Debit Overhead—Control; credit
Work-in-Process

C. Debit Work-in-Process; credit
Overhead—Control

D. Debit Work-in-Process; credit Raw Materials Inventory

What is the journal entry to record
issuing supplies from the storeroom?

A. Debit Overhead—Applied; credit
Raw Materials Inventory

B. Debit Overhead—Control; credit Supplies Inventory

C. Debit Supplies Inventory;
credit Overhead—Applied

D. Debit Overhead—Applied; credit
Supplies Inventory

If direct labor for the month is
$80,000 and overhead is applied based on 75% of direct labor dollars, what is
the entry to apply overhead?

A. Debit Work-in-Process Inventory
$80,000; credit Payroll $80,000

B. Debit Overhead—Applied $60,000;
credit Work-in-Process Inventory $60,000

C. Debit Work-in-Process Inventory $60,000; credit
Overhead—Applied $60,000

D. Debit Work-in-Process Inventory
$80,000; credit Overhead—Applied $80,000

Reviews

There are no reviews yet.

Be the first to review “accounting”

Your email address will not be published. Required fields are marked *

accounting

$21.00

Description

A manufacturer or seller of a
product may identify its merchandise and bar others from using the same
identification by getting a

A. franchise.

B. trademark.

C. patent.

D. copyright.

According to the MACRS tax rate
table, which of the following classes uses straight-line depreciation?

A. Residential rental property

B. Automobiles

C. Railroad tracks

D. Race horses

Chocolate Supreme purchased new
baking equipment for $15,000 subject to terms 4/10, n/45. The discount was
taken. Additional costs included $900 in sales tax and $300 for installation.
The total cost to be added to the machinery account is

A. $15,900.

B. $15,300.

C. $15,000.

D. $15,600.

Which of the following is an example
of a land improvement?

A. Shrubbery

B. Fence

C. Driveway

D. All of the above

Salvage value was ignored when
originally calculating the units-of-production depreciation. This error would
cause

A. the period’s net income to be overstated.

B. the period’s net income to be understated.

C. the period end assets to be
overstated.

D. None of the above

The credit portion of the adjustment
for the depletion of a coal mine was credited to the Coal Mine account. This
error would cause

A. the period’s net income to be
overstated.

B. the period’s net income to be
understated.

C. the period end assets to be
overstated.

D. None of the above

The depreciation method that charges
more expense in earlier years than in later years is the

A. straight-line method.

B. double declining-balance method.

C. units-of-production method.

D. All of the above

All of the following are intangible
assets except

A. patents.

B. copyrights.

C. franchises.

D. Accounts Receivable.

When calculating declining-balance
depreciation, the straight-line rate was used instead of double the
straight-line rate. In the first year of ownership, this error would cause

A. the period’s depreciation expense
to be overstated.

B. the period’s depreciation expense to be understated.

C. the period end assets to be
understated.

D. None of the above

Under MACRS, the salvage value is

A. added to the straight-line
depreciation.

B. subtracted from the cost of the
asset.

C. ignored.

D. added to the cost of the asset.

Which depreciation method is used to
determine depreciation for income tax purposes?

A. Straight-line

B. Double-declining balance

C. Units-of-production

D. MACRS

The entry to record the cost of a
property, plant, or equipment asset would include

A. acquisition cost.

B. freight.

C. installation.

D. All of the above

Which of the following is a
nondepreciable asset?

A. Desk chairs

B. Land

C. Computer

D. Building

Which depreciation method does not
deduct residual value when computing depreciation expense? d Both a and b

A. Units-of-production

B. Straight-line

C. Double-declining-balance

An example of an intangible asset is

A. a patent.

B. a building.

C. assembly cost.

D. land.

The process of writing off an
intangible asset is

A. depreciation.

B. depletion.

C. amortization.

D. None of the above

The depreciation method that bases
the expense on the level of use instead of the passage of time is the _______
method.

A. units-of-production

B. straight-line

C. modified accelerated cost
recovery

D. double-declining-balance

A company purchased new machinery
and incurred freight, assembly, and installation costs in addition to the
invoice cost of the machinery. These additional costs should be debited to

A. cash.

B. machinery.

C. installation expense.

D. machinery expense.

Amortization of a patent was
ignored. This error would cause

A. the period’s net income to be overstated.

B. the period’s net income to be
understated.

C. the period end assets to be understated.

D. None of the above

Using MACRS rates for a three-,
five-, seven-, and ten-year property, what is the percentage for the
depreciable rate?

A. 200%

B. 150%

C. 125%

D. 100%

Which of the following would not be
shown on the statement of retained earnings?

A. Purchase of treasury stock

B. Appropriations for plant
expansion

C. Declaration of a stock dividend

D. Declaration of a cash dividend

When O’Rourke Corporation sells
treasury stock for more than the original cost,

A. stockholders’ equity increases.

B. paid-in capital increases.

C. retained earnings may increase.

D. retained earnings may decrease.

Before a three-for-one stock split,
the shares outstanding were 5,000 shares at $12 par. After the split, what was
the par and number of shares?

A. 15,000 shares at $12 per share

B. 20,000 shares at $6 per share

C. 15,000 shares at $4 per share

D. 5,000 shares at $48 per share

Treasury Stock is which type of account?

A. Stockholders’ equity

B. Liability

C. Asset

D. Contra-stockholders’ equity

A stock split

A. causes a decrease in the number
of shares outstanding.

B. increases the par or stated
value in proportion.

C. reduces retained earnings.

D. None of the above

Treasury stock was sold above cost,
and the excess was credited to Gain on Sale. This error would cause the
period’s

A. end assets to be overstated.

B. end liabilities to be
overstated.

C. end stockholders’ equity to be
overstated.

D. net income to be overstated.

A distribution to stockholders in
the form of cash is called a

A. stock dividend.

B. stock split.

C. stock conversion.

D. cash dividend.

Providing services to a credit
customer was recorded with a debit to Cash and a credit to Retained Earnings.
This error would cause

A. the period’s net income to be understated.

B. the period’s end liabilities to
be understated.

C. the total period’s end stockholders’
equity to be understated.

D. the period’s net income to be
overstated.

Appropriations to retained earnings
are

A. recorded as an contra-asset.

B. disclosed in the notes to the financial statements.

C. recorded as a contra-liability.

D. a contra-stockholders’ equity.

Farm and Supply reissued 100 shares
of treasury stock at $20 that had been reacquired for $15 per share. What is
the entry?

A. Debit Cash $2,000; credit Treasury Stock—Common $1,500;
credit Paid-In Capital from Treasury Stock $500

B. Debit Cash $2,000; credit
Treasury Stock—Common $2,000

C. Debit Cash $1,500; credit
Paid-In Capital from Treasury Stock $500, credit Treasury Stock—Common $2,000

D. None of the above

Rick’s Internet Corporation’s
balance in Retained Earnings is $30,000. The board of directors directs that
$15,000 be appropriated for future business expansion. This will cause total
retained earnings to

A. remain at $30,000.

B. increase by $15,000.

C. decrease by $15,000.

D. increase or decrease $5,000, as
determined by the board.

A stock-split journal entry would
include a

A. debit to Retained Earnings and
a credit to Common Stock.

B. debit to Common Stock and a
credit to Cash.

C. debit to Common Stock Dividend
Distributable and a credit Common Stock.

D. memorandum notation only.

A retained earnings appropriation is
a restriction of retained earnings by

A. accountants.

B. senior management.

C. stockholders.

D. the board of directors.

Which of the following dividend
dates does not get a formal journal entry?

A. Date of payment

B. Date of declaration

C. Date of record

D. All receive formal journal
entries.

Declaration of a cash dividend was
recorded by debiting Operations Expense and crediting Cash. This error would
cause

A. the period’s end assets to be
overstated.

B. the period’s end liabilities to be overstated.

C. the period’s end stockholders’
equity to be understated.

D. None of the above

ABC Corporation offered a
four-for-one stock split. The number of outstanding shares before the split was
15,000, and the par value was $20 per share. After the split, what was the par
value and number of shares?

A. 3,750 shares at $80 per share

B. 60,000 shares at $80 per share

C. 60,000 shares at $5 per share

D. 3,750 shares at $5 per share

In the dividend process, the
liability Dividend Payable is recognized on the date of

A. declaration.

B. record.

C. payment.

D. stock issue.

To record the purchase of treasury
stock,

A. debit Treasury Stock—Common
(par value) and credit Cash (same).

B. debit Treasury Stock—Common (purchase price) and credit
Cash (same).

C. debit Treasury Stock—Common
(par value) and debit any difference to Paid-In Capital; credit Cash
(purchase price).

D. None of the above

The date of record for cash
dividends is

A. the date the board of directors
pays a dividend.

B. the date established by the board of directors that
determines who will receive dividends.

C. the date that creates a
liability for the company.

D. None of the above

The entry to record the distribution
of the stock dividend would include

A. a credit to Common Stock.

B. a debit to Common Stock
Distributable.

C. Both a and b

D. None of the above

Reviews

There are no reviews yet.

Be the first to review “accounting”

Your email address will not be published. Required fields are marked *

accounting

$21.00

Description

A.

The following information is given for Tripp Company, which uses the indirect method.

Net income$20,000

Depreciation expense$3,000

Increase in accounts receivable$2,000

Payment of dividends$2,000

Proceeds from sale of equipment$6,000

Increase in accounts payable$4,000

Decrease in inventory$3,000

From the information provided, answer the following questions:

1.The cash flow from operating activities is ________.2.The cash flow from investing activities is ________.3.The cash flow from financing activities is ________.4.

B.

Selected data for Stick’s Design are given as of December 31, Year 1 and Year 2 (rounded to the nearest hundredth).

Year2Year 1

Net Credit Sales$25,000$30,000

Cost of Goods Sold16,00018,000

Net Income2,0002,800

Cash5,000900

Accounts Receivable3,0002,000

Inventory2,0003,600

Current Liabilities6,0005,000

Compute the following:

1.Current ratio for Year 22.Acid-test ratio for Year 23.Accounts receivable turnover for Year 24.Average collection period for Year 25.Inventory turnover for Year 2

.

Prepare an income statement showing departmental contribution margin based on the following:

Dept. XDept. YRent Expense

Space (square feet)17,50035,000

Net Sales60,00040,000

Cost of Goods Sold18,00016,000

Rent Expense (allocated based on square feet) 2,700

D.

From the following transactions, prepare the appropriate general journal entriesfor the month of April.

1.Raw materials costing $60,000 were issued from the storeroom.2.Direct labor of $53,000 was charged to production.3.Indirect labor costs of $17,000 were incurred.4.Overhead was applied at the rate of 40% of direct labor dollars.5.Completed products costing $42,000were transferred to finished goods.6.Products costing $32,000 were sold.

Reviews

There are no reviews yet.

Be the first to review “accounting”

Your email address will not be published. Required fields are marked *

accounting

$21.00

Description

1)
If current assets were $100,000 in 20×7 and $88,000 in 20×8,
what was the amount of increase of decrease?

a)
The percentage increase was 13.64%

b)
The percentage decrease was 12%

c)
The percentage decrease was 13%64%

d)
The percentage increase was 12%

2)
A maintenance department would be an example of a

a)
Cost center.

b)
Direct expense.

c)
Profit center.

d)
None of the above

3)
An example of a cost center is

a)
A Holiday Inn.

b)
The restaurant in a hotel.

c)
The administrative department in a hotel

d)
The catering department in a hotel.

4)
If total assets are $6,000, what is the vertical analysis for
Cash when it has a balance of $2,400?

a)
40%

b)
60%

c)
250%

d)
25%

5)
When preparing an income statement showing departmental
contribution margin,

a)
Indirect expenses are combined with direct expenses.

b)
Indirect departmental expenses are added to contribution margin.

c)
Direct expenses are subtracted from contribution margin on
sales.

d)
None of the above

6)
Direct expenses are expenses that

a)
Can be identified with a specific department.

b)
Can’t be identified with a specific department.

c)
Can be identified with more than one department.

d)
None of the above

7)
If management wishes to evaluate the ability of a business to
provide funding to cover operating expenses, they could use the

a)
Rate of return on total assets.

b)
Rate of return on common stockholders’ equity.

c)
Gross profit rate.

d)
Times interest earned.

8)
When a company tracks gross profit by department, the sales
journal will

a)
Not differ from a company that doesn’t track gross profit by
department.

b)
Have a separate column for accounts receivable for each
department.

c)
Have a separate column for sales for each department.

d)
Have a column for purchases for each department.

9)
Scott Company had a current ratio of 2.76:1 in Year 1 and 2.57:1
in Year 2. This change in current ration indicates that the

a)
Company’s debt-paying ability has improved.

b)
Company’s debt-paying ability has weakened.

c)
Company’s customers are paying their accounts sooner.

d)
Company is able to sell its inventory faster.

10)The lower the times interest
earned ratio, the more likely

a)
A default in payment will occur.

b)
A business will need to borrow money.

c)
A business will suffer a loss.

d)
Interest payments can be made.

11)Comparative reports in which
each item is expressed as a percentage of a base amount without dollar amounts
are called

a)
Comparative financial statements.

b)
Common-size statements.

c)
Cash flow analysis.

d)
Horizontal analysis.

12)Managerial accounting is
primarily used for _____ , but financial accounting is used for ______

a)
Business decisions; external reports\

b)
CEOs; stockholders

c)
Customers; tax reporting

d)
External reports; decision-making

13)Liquidity ratios measure

a)
How effectively a company is using its equity.

b)
How effectively a company is using it liabilities.

c)
A company’s ability to pay shareholders.

d)
A company’s ability to pay off short-term debts.

14)What is the purpose of
determining the contribution margin?

a)
To show the contribution by a department toward covering
indirect costs

b)
To help determine whether to eliminate a department

c)
To show the effect on net income of each department

d)
All of the above

15)What
was the percentage of decrease in the Accounts Receivable account if the
receivables were $80,000 in Year 1 and $60,000 in Year 2?

a)
(25%)

b)
33.33%

c)
(33.33%)

d)
25%

16)Noble
Company’s accounts receivable turnover was 18.2 in Year 1 and 24.6 in Year 2. This
change in accounts receivable turnover indicates that the

a)
Company isn’t selling its inventory as fast.

b)
Company is selling its inventory faster.

c)
Company’s customers are paying faster.

d)
Company’s customers are paying slower.

17)If Cash
is $2,345 in 20×2 and $3,671 in 20×1, what is the percentage of increase or
(decrease) from 20×1 to 20×2?

a)
56.55%

b)
(56.55%)

c)
36.12%

d)
(36.12%)

18)To
determine how each profit center is performing, management would analyze the

a)
Income tax rate.

b)
Indirect expenses.

c)
Gross profit for each profit center.

d)
Other expenses.

19)Debt
management ratios measure

a)
How effectively a company is using its cash.

b)
How well a company is using debt versus equity position.

c)
A company’s ability to earn profit.

d)
A company’s ability to meet payable obligations

20)In a
comparative balance sheet, the ending Cash was $315,000 in 2011 and $270,000 in
2012. The net increase or decrease from 2011 to 2012 is

a)
86.0%.

b)
14.3%.

c)
26.4%.

d)
16.7%.

Reviews

There are no reviews yet.

Be the first to review “accounting”

Your email address will not be published. Required fields are marked *

accounting

$21.00

Description

A bond payable is similar to which
of the following?

A. Accounts payable

B. Accounts receivable

C. Notes payable

D. Cash

A statement of cash flow’s purpose
is to

A. show the revenue earned.

B. show the profits that were
generated.

C. show the expenses that were
incurred.

D. show how cash was generated and used during an
accounting period.

Bonds payable issued with collateral
are called _______ bonds.

A. debenture

B. serial

C. callable

D. secured

If bonds are sold between interest
payment dates, the amount of cash the issuer receives is

A. more than the market value of the bonds.

B. less than the market value of
the bonds.

C. equal to the market value of
the bonds.

D. equal to the face value of the
bonds.

When the market rate of interest on
bonds is higher than the contract rate, the bonds will sell at

A. a premium.

B. their face value.

C. their maturity value.

D. a discount.

When preparing the statement of cash
flows by the indirect method, if current liabilities increase the difference is

A. added to net income.

B. added to investments.

C. deducted from net income.

D. subtracted from investments.

Collins Corporation reported a net
income of $35,000, depreciation expenses of $20,000, an increase in Accounts
Payable of $2,000, and an increase in Accounts Receivable of $3,000. Net cash
flow from operating activities using the indirect method is

A. $55,000.

B. $54,000.

C. $50,000.

D. $56,000.

The activity that’s probably the
most important indicator of financial health is the net cash flow from _______
activities.

A. buying and selling

B. financing

C. operating

D. investing

When a bond issued at face value is
retired, what is the journal entry?

A. Debit Bond Interest Expense;
credit Cash

B. Debit Bonds Payable; credit Cash

C. Debit Cash; credit Bonds
Payable

D. Debit Cash; credit Bond
Interest Expense

For a corporation, a premium on
bonds results when

A. the contract rate is greater than the market rate.

B. the contract rate is less than
the market rate.

C. the face value is greater than
the effective rate.

D. None of the above

The interest rate specified in the
bond indenture is called the _______ rate.

A. market

B. discount

C. contract

D. effective

If a bond is issued at a premium,
the effective interest rate is most likely _______ the contract interest rate.

A. higher than

B. lower than

C. the same as

D. Answer can’t be determined
based on information given.

Rick Corporation’s Accounts
Receivable decreased by $25,000 during the year. What is the adjustment to the
cash flow statement when it’s prepared by the indirect method?

A. Subtract the decrease from the
net income in operating activities.

B. Add the decrease to the net income in operating
activities.

C. Add the decrease in the
investing activities section.

D. Subtract the decrease in the
financing activities.

A statement of cash flows

A. has three main sections: net
cash flow from operating, investing, and financing activities.

B. may be computed directly or
indirectly.

C. is a statement used to better
understand the financing and investing activities.

D. All of the above

A $1,000 bond quoted at 104 would
sell for

A. $1,104.

B. $1,000.

C. $104.

D. $1,040.

An inflow of cash from investing
activities would be

A. the issuance of stock.

B. the sale of investment in equity securities.

C. interest received on loans.

D. the purchase of fixed assets.

A $1,000 bond quoted at 96.5 would
sell for

A. $1,000.

B. $965.

C. $96.50.

D. None of the above

A cash outflow from a financing
activity would be

A. paying cash dividends.

B. buying debt and equity
securities.

C. paying interest on notes
payable.

D. making payments for additional
inventory.

Transactions involving the purchase
and sale of fixed assets would be considered _______ activities.

A. buying and selling

B. financing

C. operating

D. investing

A bond is issued for less than its
face value. Which statement most likely would explain why?

A. The bond’s contract rate is lower than the market rate at the time
of the issue.

B. The bond’s contract rate is the
same as the market rate at the time of the issue.

C. The bond’s contract rate is
higher than the market rate at the time of the issue.

D. The bond isn’t secured by
specific assets of the corporation.

Direct expenses are expenses that

A. can be identified with a specific department.

B. can’t be identified with a
specific department.

C. can be identified with more
than one department.

D. None of the above

Gross profit by department appears
on the

A. balance sheet.

B. statement of retained earnings.

C. statement of cash flows.

D. income statement.

Comparative reports in which each
item is expressed as a percentage of a base amount without dollar amounts are
called

A. comparative financial
statements.

B. common-size statements.

C. cash flow analysis.

D. horizontal analysis.

Managerial accounting is primarily
used for _______, but financial accounting is used for _______.

A. business decisions; external reports

B. CEOs; stockholders

C. customers; tax reporting

D. external reports;
decision-making

If management wishes to evaluate the
amount of assets that were financed by creditors, they could use the

A. debt to total assets.

B. rate of return on common
stockholders’ equity.

C. debt to total liabilities.

D. times interest earned.

A unit or department that incurs
costs and generates revenues is a/an _______ center.

A. expense

B. direct

C. cost

D. profit

Departmental reports are useful for
all of the following purposes except

A. determining performance.

B. determining future revenue.

C. controlling.

D. planning.

If management wishes to evaluate the
ability of a business to provide funding to cover operating expenses, they
could use the

A. rate of return on total assets.

B. rate of return on common
stockholders’ equity.

C. gross profit rate.

D. times interest earned.

Indirect expenses are expenses that

A. may be incurred outside the
control of a department manager.

B. can’t be identified with a
specific department.

C. are incurred for the general
benefit of a company.

D. All of the above

When a company tracks gross profit
by department, the sales journal will

A. not differ from a company that
doesn’t track gross profit by department.

B. have a separate column for
accounts receivable for each department.

C. have a separate column for sales for each department.

D. have a column for purchases for
each department.

Normally the report prepared for a
department is a/an

A. cash flow statement.

B. statement of equity.

C. income statement.

D. balance sheet.

If current assets were $100,000 in
20×7 and $88,000 in 20×8, what was the amount of increase or decrease?

A. The percentage increase was
13.64%.

B. The percentage decrease was 12%.

C. The percentage decrease was
13.64%.

D. The percentage increase was
12%.

If Cash is $2,345 in 20X2 and $3,671
in 20X1, what is the percentage of increase or (decrease) from 20X1 to 20X2?

A. 56.55%

B. (56.55%)

C. 36.12%

D. (36.12%)

To determine how each profit center
is performing, management would analyze the

A. income tax rate.

B. indirect expenses.

C. gross profit for each profit center.

D. other expenses.

What was the percentage of decrease
in the Accounts Receivable account if the receivables were $80,000 in Year 1
and $60,000 in Year 2?

A. (25%)

B. 33.33%

C. (33.33%)

D. 25%

Debt management ratios measure

A. how effectively a company is
using its cash.

B. how well a company is using debt versus equity
position.

C. a company’s ability to earn
profit.

D. a company’s ability to meet
payable obligations.

If total assets are $6,000, what is
the vertical analysis for Cash when it has a balance of $2,400?

A. 40%

B. 60%

C. 250%

D. 25%

If management wishes to know how
well a business’s inventory is moving, they could use the

A. accounts receivable turnover.

B. inventory turnover.

C. acid test ratio.

D. current ratio.

The lower the times interest earned
ratio, the more likely

A. a default in payment will occur.

B. a business will need to borrow
money.

C. a business will suffer a loss.

D. interest payments can be made.

A line on the income statement that
indicates what a department has left after covering cost of goods sold and
direct expenses is

A. the gross margin.

B. the net income.

C. the contribution margin.

D. None of the above

Reviews

There are no reviews yet.

Be the first to review “accounting”

Your email address will not be published. Required fields are marked *

: Accounting

$13.00

Description

On the first day of its fiscal year, Ramsey Company issued $35,000,000 of 10-year, 9% bonds to finance its operations. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 11%, resulting in Ramsey Company receiving cash of $30, 817,399. The company uses the interest method.
a. Journalize the entries to record the following:
1. Sale of the bonds.
2. Prepare an amortization table through December 31, 2014(4 interest periods for this bond issue
3. First semiannual interest payment, including amortization of discount. Round to the nearest dollar.
4. Second semiannual interest payment, including amortization of discount. Round to the nearest dollar.
5. compute the amount of the bond interest expense for the first year.
(B) Yates Corporation has the following stockholders’ equity accounts on Jan 1, 2012:
Common Stock, $10 par value: $1,500,000
Paid-in Capital in Excess of Par: 200,000
Retained Earnings: 500,000
Total Stockholders’ Equity: $2,200,000
The company uses the cost method to account for treasury stock transactions. During 2012, the following treasury stock transactions occurred:
April 1 Purchased 10,000 shares at $18 per share.
August 1 Sold 4,000 shares at $22 per share.
October 1 Sold 4,000 shares at $15 per share
Instructions:
(A) Journalize the treasury stock transactions for 2012.
(B) Prepare the Stockholders’ Equity section of the balance sheet for Yates Corporation at December 31, 2012. Assume net income was $110,000 for 2012.
C. KT Corporation wholesales auto parts to auto manufacturers. On march 1, 2012, Kt corporation issued $17,500,000 of five year, 12% bonds at market (effective) interest rate of 10%, receiving cash of $18,851,252. interest is payable semiannually. KT corporation’s fiscal years begins on March 1. The company uses the interest method.
a.Journalize the entries to record the following:
1. sale of the bonds.
2.prepare an amortization table through 3 interest periods for this bond issue.
3. First semiannual interest payment, including amortization of discount. Round to nearest dollar.
4.Second semiannual interest payment, including amortization of discount. Round to nearest dollar.
5.Compute the amount of the bond interest expense for the first year.

Reviews

There are no reviews yet.

Be the first to review “: Accounting”

Your email address will not be published. Required fields are marked *

accounting

$15.00

Description

1. Explain how accountants determine solutions to various accounting business demands.
2. What basic accounting concepts should you use to ensure accurate and reliable financial statements?
3. In your opinion, which basic accounting concept is the most important and why?

Reviews

There are no reviews yet.

Be the first to review “accounting”

Your email address will not be published. Required fields are marked *

Accounting

$11.00

Description

Reviews

There are no reviews yet.

Be the first to review “Accounting”

Your email address will not be published. Required fields are marked *

Accounting

$26.00

Description

Discusion board due by the 5/26/15

Primary Discussion Response is due by Wednesday (11:59:59pm Central), Peer Responses are due by Sunday (11:59:59pm Central).

Primary Task Response: Within the Discussion Board area, write 600–800 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas.

As you close your weekly meeting with Deborah, she says, “There are some very good ideas here. I would like to see you continue with a global marketing plan. We need more concrete analysis and data for the presentation. Get your team to work.”

After your meeting with Deborah, you briefly meet with your team to discuss moving toward a more formal analysis.

“Tiffany and Mike, we need to provide a more detailed analysis,” you explain. “You’ve done a great job so far looking at what resources we need and potential countries, but we need to really dig deeper on this.”

Tiffany nods her head in agreement. “Definitely,” she says. “We need to look at some internal variables as well as political, environmental, sociocultural, and technological environments of the countries that we are considering.”

Mike interjects, “Well, that’s something we should consider, but it’s not the only way to analyze this type of project. This is such a big decision, and we need to give as much information as we can.”

You reply, “Great point, Mike. We should look at this from a couple of different angles.”

You go back to your office to update the project schedule with Deborah’s instructions. You review the activities and note the project remains on schedule.

The next task in your strategic marketing plan is to determine the tools that are needed to conduct an analysis of the industry and competitors. Complete the following:

•What are the best tools to use in this situation? ?Provide a brief summary of at least 2 of these tools.

•Why do you think these are the best ways to analyze the market?

•How will you use these tools in your plan?

The materials found in the M.U.S.E. may help you with this assignment, such as the audio file Implementing a Global Strategy. This file provides real-world experience that may help you with this assignment.

Responses to Other Students: Respond to at least 2 of your fellow classmates with at least a 100-word reply about their Primary Task Response regarding items you found to be compelling and enlightening. To help you with your discussion, please consider the following questions:

Reviews

There are no reviews yet.

Be the first to review “Accounting”

Your email address will not be published. Required fields are marked *

ACCOUNTING

$29.00

Description

Inoca private limited produces two products ranges: the standard range and special range. During the July, 300 standard windows and 50 specialized windows were manufactured and indirect production costs of $73000 were incurred. An analysis of indirect costs reveals the following activities.

Activity Cost Driver Total Cost

Material Handling Number of requisitions $25000

Machine Setups Number of set ups $27000

Quality inspections Number of inspections $21000

The cost driver volume for each product was as follows.

Cost driver Specialized Standard Total

Number of requisitions 400 600 1000

Number of setups 150 300 450

Number of inspections 200 400 600

a. Indirect activity cost rate for each activity.

b. Allocate the indirect manufacturing overhead costs for July to the products using activity cost rates calculated in (a) above

c. Write a memo to the managing director of Inoca private limited explaining the benefits of activity based costing

d. Volume-based cost drivers are no longer appropriate in today’s business environment”. Discuss.

TASK 2: Managerial Planning

Leeway Maldives (Pvt) Ltd has the capacity to manufacture 50,000 units annually of its only product. The following information is available.

Selling price

$26 per unit

Variable manufacturing costs

$12 per unit

Fixed manufacturing costs

$180,000 annually

Fixed selling and administrative costs

$120,000 annually

Variable selling and administrative costs

$ 4 per unit

a. Calculate the number of units that need to be sold annually to break even. 3

b. How many units would need to be sold to earn a target annual profit of $120,000?

c. In an attempt to achieve better results in the marketplace, management has been looking at changing the reward systems for making, distribution and sales personnel. This would result in an increase in variable selling and administrative costs by $2 per unit, and would reduce fixed selling and administrative costs by $50000.

(i) Calculate the number of units required to break even if management implemented the changes

(ii) Would you suggest management pursues the changes? Explain.

TASK 3: Short-term Decision Making

XYZ Company produces plunge pools. Currently, the company uses internally manufactured pumps to power water jets. XYZ Company has found that 40 per cent of the pumps have failed within their 12-month warranty period, causing huge warranty costs. Because of the company’s inability to manufacture high-quality pumps, management is considering buying pumps from a reputable supplier who will also bear any related warranty costs. XYZ company’s unit cost of manufacturing pumps is $83.75 per unit, including $17.25 of allocated fixed overhead (primarily depreciation of equipment). Also, the company has spent an average of $22 (labor and parts) repairing each pump returned. XYZ Company can purchase each pump for $92.50. During 2013, XYZ Company plans to sell 12,800 plunge pools (each pool requires one pump).

XYZ company’s unit cost of manufacturing pumps is $83.75 per unit, including $17.25 of allocated fixed overhead (primarily depreciation of equipment). Also, the company has spent an average of $22 (labor and parts) repairing each pump returned. XYZ Company can purchase each pump for $92.50. During 2013, XYZ Company plans to sell 12,800 plunge pools (each pool requires one pump).

Required

a. Determine whether XYZ Company should make or buy the pumps, and the amount of cost savings arising from the best alternative. [8 marks]

b. What qualitative factors should be considered in the outsourcing decision? [7 marks]

e. “Fixed costs are always irrelevant in decision making.” Discuss. [5 marks]

TASK 4: Budgetary Control Systems

Madihaa Company Pte Ltd intends to start business on the first of January. Production plans for the first four months are as follows:

January

20,000 units

February

50,000 units

March

70,000 units

April

70,000 units

Each unit requires 2 kilograms of material. The company would like to end each month with enough raw material inventories on hand to cover 25 per cent of the following month’s production needs. The material costs $7 per kilogram. Management anticipates being able to pay for 40 per cent of its purchases in the month of purchase. They will receive a 10 per cent discount for these early payments. They anticipate having to defer payment to the next month on 60 per cent of their purchases. No discount will be taken on these late payments. The business starts with no inventories on 1 January.

Required

a.Determine the budgeted payments for purchases of materials for each of the first three months of operations. [8 marks]

b.Madihaa Company Pte Ltd is preparing a master budget for the coming year. At present senior management are reviewing the inventory policies. Which budgets, would policies concerning the level of inventories be affected and why?

c. Discuss the potential issues arising for an entity if it takes a budgetary approach in which budgetary data are imposed on business unit managers by the CEO. Contrast this with an approach whereby the budgetary data is developed in a more participatory environment.

TASK 5: Decentralization and Performance Evaluation

Zam Gems Maldives (Pvt) Ltd manufactures jewelry for three different markets. The business has grown from a backyard hobby for the owners to quite a large manufacturing concern. The company is structured into three distinct divisions aligned with each market, as shown.

Children’s jewellery Adult jewellery Crystals & homewares

Sales $4,720,000 $2,480,000 $6,300,000

Variable costs 33% 38% 50%

Fixed costs $1,960,000 $1,800,000 $1,700,000

Divisional assets $5,000,000 $4,000,000 $12,000,000

Common costs for the year totaled $500,000 and were allocated based on sales.

The management of Zam Gems Maldives (Pvt) Ltd has come across a further investment opportunity. It does not want to develop a separate division, so one of the existing divisions would need to take responsibility for the new investment opportunity. Management estimates that the new investment opportunity would require an investment of $2500000 to deliver sales of $2000000 with variable costs estimated at $625000 and fixed costs at $1000000.

Required

a. At present, divisional performance is evaluated based on ROI. If this is the case, which division would want to take over the new investment opportunity? [5 marks]

b. If the company changed its performance evaluation criteria to encompass residual income based on a charge for capital of 14 per cent, which division would want to take over the new investment opportunity? [5 marks]

c. Why is there a need to measure organizational performance? [5 marks]

d. Discuss the appropriateness of the use of ROI, RI, and EVA as performance measures. [5 marks]

Reviews

There are no reviews yet.

Be the first to review “ACCOUNTING”

Your email address will not be published. Required fields are marked *

accounting

$28.00

Description


.gif”>











Module Information
Booklet



Taylor’s University










Undergraduate
Business Programmes







August Semester 2012






BUS 2104



Management Accounting





.gif”>


CONTENTS


.jpg”>







Introduction



Module
Overview



Learning
resources



Assessments



Resit
Assessments



Assessment
Offences



Extenuating
Circumstances



Assignment
Case Study and Guidelines



Module
Calendar



Assignment
Cover






































1





.gif”>


INTRODUCTION


.jpg”>



WELCOME



Welcome
to your studies in Management Accounting.



This module is designed to provide students with an
overall understanding of how management accounting information plays a critical
role in assisting management in organisational planning, controlling,
decision-making and learning. You will also be equipped with the conceptual and
practical understanding necessary to use and interpret management accounting
information.



Please try not to get behind in this module because each
new topic builds upon concepts covered in the previous topics. Hence, if you do
not keep up on a weekly basis you will find it difficult at the end of the
semester. Management accounting is like mathematics in the way that it builds
on earlier learning. Just as you need to be competent at addition to understand
multiplication, you need to understand the basic concepts in the earlier topics
of this module to be able to grasp the techniques that are used in the later
topics.



Remember
to undertake all the tutorial questions that have been set for each topic as
you proceed through the module. The tutorial questions focus on both the
theoretical concepts and the application of these concepts in a practical
setting. They are selected to reinforce and test your understanding of the
other study materials. Do not leave a large amount of the module to study just
before the examinations.



We
trust that you will the module interesting and useful in your career later on.



We
wish you all the best in your studies and we look forward to joining you on
your journey through this introduction to management accounting.




CONTACT DETAILS



Lecturer
and Tutor



Ms.
Nadiah Soo (Soo Wai Mun)



Block
E, Wing A, Level 9, Room 3



Taylor’s
University



Tel.:
5629500 Ext. 5670



Email
:
waimun.soo@taylors.edu.my




Tutor



Mr.
James Lu Chee Peng



Block
E, Wing B, Level 9, Room 7



Taylor’s
University



Tel.:
5629500 Ext. 5683



Email:
cheepeng.lu@taylors.edu.my



2





.gif”>


MODULE OVERVIEW


.jpg”>



MODULE SYNOPSIS



This
module is an introduction to the basic techniques of management accounting and
its role in the manufacturing and service business environments, and the
applications of management accounting techniques to all the organizations.
Students will develop the knowledge and understanding of how to prepare,
process and interpret basic cost and other management accounting information to
support management in planning and decision-making in a variety of business
contexts.



PREREQUISITE /
ASSUMED KNOWLEDGE



The
prerequisite for this module is BUS1104 Introduction to Accounting.




MODULE OBJECTIVES



  1. To
    provide students with an overview of how management accounting information
    plays a critical role in organisational planning, controlling,
    decision-making and learning.


  1. To equip students with
    the conceptual and practical understanding necessary to use and interpret
    management accounting information.


  1. To
    provide an understanding the various costing systems for planning, control
    and decision making.


  1. To
    develop an understanding on the application of management accounting
    techniques and its ability to create value added for various
    organisations, especially in manufacturing and services entities.


LEARNING OUTCOMES



Upon
successful completion of this module students should be able to:



  1. Describe
    and appraise the roles of management accounting in planning, control and
    decision-making.


  1. Identify the major
    differences and similarities between financial and managerial accounting.


  1. Using
    managerial accounting tools for planning and control, with particular
    emphasis on short term planning.


  1. Explain the various costing systems used
    by organizations for control, planning and decision making and be able to
    calculate product costs using conventional and contemporary approaches to
    costing.


  1. Identify
    the information needs and produce financial analyses for a range of
    decisions such as pricing, product mix and outsourcing.


  1. Develop budgets and
    long-term financial plans.


  1. Critically
    evaluate the role that standard costing plays in planning and control and
    be able to Calculate and interpret standard cost variances.


  1. Apply
    management accounting techniques and knowledge of product costing and
    budgeting systems.



3





TAYLOR’S
GRADUATE CAPABILITIES (“TGC”)



Upon successful completion of this module, a student
should be equipped with the following Taylor’s graduate capabilities:



1.
Discipline-specific knowledge



Has a sound understanding of
foundational concepts and theories in subject area.



2.
Cognitive capabilities



i) Foundations
and skills for lifelong learning – Learns autonomously; is able to
acquire and manage information, comprehends a wide variety of literature and
has an awareness of contemporary global issues.



ii)
Problem-solving skills-
Defines issues or problems well; analyses problems comprehensively;applies
knowledge effectively and applies theory to practice; is able to think
critically and arrive at workable and effective solutions.



3.
Soft skills



i) Communication
skills
–Speaks and writes well; is able to organize,
synthesize and presentinformation effectively.



ii) Interpersonal
skills
– Understands team dynamics, the power of teams and
teamwork; Workswith others in a team; is able to assume leadership in
small and/or big groups.



iii) Intrapersonal
skills
– Manages time effectively; Understands the role of
personal image andprofessionalism at work; Works independently in
context of tasks to be completed



iv)
Cosmopolitan thinking and intercultural
competence – Forms opinions and articulates views from a global perspective;
Has an awareness of and sensitivity to cross-cultural differences;



v) Technology
savvy
–Competent in executive keyboarding; Effectively
uses ICT and relatedtechnologies































4






On
completion of this module, students should be able to:


.jpg”>




Module Objectives

Taylor’s Graduate
Capabilities being developed through the module



TGC1

TGC2(i)

TGC2(ii)

TGC3(i)

TGC3(ii)

TGC3(iii)

TGC3(vi)

TGC3(vi)





































1. To provide students with

an overview of how

management
accounting

information plays a

X

critical role in

X

X

X

X

X

organisational
planning,

controlling,
decision-

making and
learning.

2. To equip students with

the conceptual and

practical
understanding

X

X

X

X

X

necessary to use
and

interpret
management

accounting
information.

3.

To provide an

understanding the

various costing
systems

X

X

X

X

X

X

X

for planning,
control and

decision making.

4.

To develop an

understanding on
the

application of

management
accounting

techniques and its
ability

X

X

X

X

X

X

X

X

to create value
added for

various
organisations,

especially in

manufacturing and

services entities.




TEACHING AND LEARNING
ARRANGEMENTS



This
module is delivered in a mixture of lectures, tutorials and on-line materials.
Class contact time consists of two hours of lectures and a two-hour tutorial
each week. Lectures will begin in week 1 and tutorials will begin in week 2.



Students
are expected to spend an extra six hours non-contact time per week engaging in
the module.




5





UNIT
VALUE OF MODULE



4
credit hours






























































6





.gif”>


LEARNING
RESOURCES


.jpg”>







TEXT



Horngren,
C. T., Datar, S. M. and Rajan M.V. (2012), Cost Accounting: A Managerial
Emphasis
, (Global Edition 14th Ed.)
Edinburgh Gate, Harlow, Essex, England, Pearson Education Limited, ISBN-13
978-0-273-75387-2.



Please
ENSURE that your textbook comes with a 12-month student access kit for
MyAccountingLab.




OTHER TEXT REFERENCES



Listed
below are books which are useful text references to support your learning. You
are not required to purchase these books as copies are available in the library
for student use.



·
Braun, K., Tietz, W., and Harrison, W.
(2010), Managerial Accounting (2nd
edition), Upper Saddle River, New Jersey, Prentice-Hall International, ISBN
13-978-0-13-609116-5.



·
Drury, C. (2008). Management and Cost
Accounting
(7th ed.), Cengage Learning,
ISBN-13: 9781844805662.



·
Hansen, D., and Mowen, M., (2007) Managerial
Accounting
, 8th Edition, Thomson,
South-Western, ISBN-13: 9780324376005.



·
Garrison, Noreen & Brewer (2012) Managerial
Accounting,
14th Edition, McGraw-Hill,
ISBN-13: 9780324376005.





ONLINE SUPPORT



Taylor’s
University provides a program website (Blackboard) to allow students convenient
access to module resources.



Materials
available include:



·
Module
Information Booklet



·
Study
Guide



·
Lecture slides



·
Assignment
Cover Sheet



·
Assignment
Feedback Form



·
Other
information on the module














7





.gif”>


ASSESSMENT


.jpg”>



ASSESSMENT SUMMARY































Form of assessment

Length

Weighting

Due date

Learning

TGC Achieved

Outcomes

being

assessed

Preparation of
tutorial

5%

During class

1,2, 3, 4, 5, 6, 7 &

1, 2(i), 2(ii), 3(i),

sessions

work, participation
and

8

3(iii), 3(iv)
& 3(v)

quizzes

Mid-semester test

90

15%

Week 7

1, 3, 4, 5 & 6

1, 2(i), 2(ii)&

(Topics 1-5)

minutes

3(iii)

Assignment

1,500

30%

Week 9

1, 2, 3, 4, 5 & 6

1, 2(i), 2(ii), 3(i),

words

3(iii) & 3(iv)

Group Written Report

Final Examination

3 hours

50%

Exam period

1, 3, 4, 5 & 6

1, 2(i), 2(ii)&

3(iii)


ASSESSMENT DETAILS



CONTINUOUS ASSESSMENT
COMPONENT



The
continuous assessment component for this module shall comprise of:



·
Tutorial
work, tutorial participation and ad-hoc quizzes.



·
Mid-semester
test.



·
Assignment.




TUTORIAL WORK, CLASS PARTICIPATION AND QUIZZES (5%)



You
are expected to prepare for tutorial on a weekly basis and participate actively
in the class. Your tutor will check your work on ad-hoc basis from time to
time.



You will also be given short
quizzes from time to time. You should be able to answer the questions in the
quizzes if you have completed the weekly tutorial work. The aim of the quizzes
is to provide feedback on your understanding of the tutorial work. In the
event, that you are unable to answer the quizzes, despite having done the
tutorial work, you should set consult your tutor as early as possible.




8





MID-SEMESTER TEST (15%)



The
mid-semester test will consist of only multiple-choice questions. The aims of
the mid-semester test are to:



·
Test
your understanding of the concepts covered in topics 1-5;



·
Provide
you with feedback on the effectiveness of their approach to studying for this
module; and



·
Assist
you in identifying topics that you are weak in.



The test is a closed-book
exam. Only non-programmable calculators and “hard copy” dictionaries are
permitted for use in the test. The dictionary must not be enhanced or tampered
with in any way. Electronic dictionaries and mobile phones are not permitted. A
practice-set for the test can be obtained from the module website.



The
test will be held in Week 7. It will be held on the day and time when you
normally have the Management Accounting lecture session. The duration of the
test is 90 minutes. As the schedule of the test is available at the beginning
of the study period it is expected that students will make the necessary
arrangements to attend these tests. Students who do not attend the test,
without prior approval, will receive a mark of “ZERO” for the test. You will be
advised of the exact location of the test by your lecturer at a later date.



Requests
by students for consideration of extenuating circumstances must normally be
submitted prior to the assessment for which the request is being applied.
Should your requests for extenuating circumstances be approved, you may be
allowed to sit for a supplementary test. Should your requests for extenuating
circumstances be rejected you will be awarded “ZERO” mark for the test. Please
see section on Extenuating Circumstances in this booklet for more details.



The
test is not redeemable. However, your tutor will discuss the answers to the
test in your tutorial class.



ASSIGNMENT (30%)



After
graduation you will be required to apply the knowledge you gained at university
and keep up-to date with developments in your field of expertise. This
assignment has been set to develop your ability to do this. The assignment
would require you to apply various aspects of management accounting, give you
the experience of working collaboratively and develop your analytical and
communication skills.



The
assignment is due on 29 October 2012 at 2.00pm. The case study for the
assignment and the assignment guidelines are available in the section on
Assignment Case Study and Guidelines in this booklet. Please ENSURE that
you read the assignment guidelines which outline all the relevant information
in relation to submission such as the format, naming protocols for the
assignment, due date, penalty for late submission and other specific
requirements carefully before working on the case study.



FINAL EXAMINATION (50%)



The
aim of the final exam is to test a student’s understanding of and ability to
apply various management



9






accounting
concepts under examination conditions. The final exam is a closed-book exam.
Only non-programmable calculators and “hard copy” dictionaries are permitted
for use in the exam. The dictionary must not be enhanced or tampered with in
any way. Electronic dictionaries and mobile phones are not permitted. The exam
shall comprise of calculations, application and structured questions. A
practice-set for the exam can be obtained from the module website.



All students are granted only four
attempts at a module. However, if you do not attend the finalexamination, it will be deemed
that you have forfeited your right to a second attempt (resit). In which case,
you will be required to repeat the module and undertake all assessments again
(as the third attempt (repeat)). If you do not pass the module in the fourth
attempt, you will be excluded from the Dual Award programme.




Please refer to the section on Extenuating
Circumstances, should you like to request for consideration on the grounds of
extenuating circumstances.



REQUIREMENT FOR PASSING MODULE



To
pass this module, you are required to achieve:



·
at
least 40% for continuous assessments component; AND



·
at
least 40% for final exam; AND



·
an
overall of at least 50%.



[ASSESSMENT OFFENCES] – MODULE LEADERS PLEASE PUT
THIS IN A SEPARATE SECTION
. SEE PAGE 12
































10





.gif”>


RESIT ASSESSMENTS


.jpg”>







OPPORTUNITY TO ATTEMPT RESIT ASSESSMENTS



If
you have achieved:



·
an
overall module mark of less than 50%, or



·
a mark below 40% in either the continuous
assessment component or the final examination component,



it would mean you have not passed module. In which case,
you could be offered a resit attempt for one of the component or for both
components, depending on your final results.



To qualify for a
resit opportunity, a student must:



·
not
have exhausted four assessment attempts in this module, AND



·
have
submitted his/her assessments on time, AND



·
have
attended the assessments .



However, note that your right to resit could be forfeited
if you have committed any assessment offences, did not submit a piece of
assessed work on time or failed to attend an assessment.



The
mark for a resit component is capped at 50%.



RESIT CONTINUOUS ASSESSMENT



The
resit assessment for the continuous assessment component shall be in the form
of an assignment, with a weighting of 50% of the overall module resit
assessments.



The
case study for the resit assignment and the assignment guidelines shall be made
available on the module webpage in Blackboard after the release of the final
results.



RESIT EXAMINATION



The
resit exam is a closed-book exam. Only non-programmable calculators and “hard
copy” dictionaries are permitted for use in the exam. The dictionary must not
be enhanced or tampered with in any way. Electronic dictionaries and mobile
phones are not permitted. The resit examination shall comprise of calculations,
application and structured questions. The resit examination shall form 50% of
the overall module resit assessments.










11





.gif”>


ASSESSMENT OFFENCES


.jpg”>



You are to use the Harvard referencing styles
consistently for all written assessments. Taylor’s University treats any acts of
dishonesty relating to assessment of University modules very seriously. It is
vital that students acquaint themselves with the University’s policy on
assessment offences. Assessment Offences is defined here as passing off the
work of others as one’s own including copying (reproducing or imitating),
cheating, collusion (agreement to deceive, using words or ideas of colleagues
or other students and passing them off as your own), plagiarism and other
breaches of assessment or other examination regulations. Cheating, collusion
and plagiarism are the use of unfair means of presenting work for assessment;
aiding another student in the use of unfair means of presenting work for
assessment; or preventing or attempting to prevent another student from being
able to be assessed properly. Allegations of and investigations into assessment
offences will be dealt with in accordance with the regulations and procedures
in force at Taylors University for the module. Where a student is found to have
committed an assessment offence a decision must be taken either to take no
further action or to impose an appropriate penalty which may include failing
the student and determining whether or not the student will be permitted
another assessment attempt.



Where
it is decided that penalty is to be imposed, the penalty could include one of
the following:



a) the mark
for the relevant piece of assessment be reduced; or



b) the mark
awarded for the relevant piece of assessment be reduced to zero;
or



c) the student
be deemed to have failed the module,
and is not permitted for another
assessment attempt for the module.



Please
refer to Taylor’s Dual Award Programme Guide for details on Assessment
Offences.




























12





.gif”>


EXTENUATING CIRCUMSTANCES


.jpg”>



Extenuating circumstances are circumstances which are
unforeseen, unexpected, significantly disruptive and beyond a student’s
control. The circumstances must relate to a specific piece of assessment or
examination rather than being problems of a kind that affect a year as a whole
or parts of it.



A
student who is of the opinion that:



·
his or her performance in an examination or
in other assessed work has been adversely affected by an extenuating
circumstance(s), or



·
his or her ability to attend an examination
has been adversely affected by an extenuating circumstance(s).



could submit an Extenuating Circumstances Form to the
Examinations Centre at Taylor’s University. The form must be accompanied by
supporting documentary evidence.



Acceptance
of extenuating circumstances shall be evaluated on a case to case basis by an
Extenuating Circumstances Panel. The decision of the Panel shall be deemed as
final.



Circumstances that are
unlikely to be accepted as extenuating circumstances include the following:



·
personal
illness or disability for which special arrangements are already in place.



·
colds
or know conditions such as hay fever.



·
normal examination stress or anxiety
experienced during revision or the assessment period (unless corroborated by
medical evidence as a chronic condition and undergoing treatment).



·
non serious domestic or personal disruptions
(eg moving house, change of job, holidays, weddings, normal job pressure,
failed travel arrangements, financial difficulties, oversleeping).



·
study related circumstances (equipment
failure including computing/printer difficulties (unless they occur in the
examination itself), failure to have taken back up copies for work stolen or
corrupted, bunching of deadlines/examinations, missing books, poor time
management, misreading the examination timetable, taking the wrong
examination).



(Note:
The above list is not exhaustive).




















13





.gif”>


ASSIGNMENT CASE STUDY AND GUIDELINES


.jpg”>



Due date: 2.00pm Monday 29 October
2012



Length: 1,500 words



Weighting: 30%



This assignment must be submitted in a
group comprising of 2 students. Groups may be formed between any students
enrolled in this course – group members do not need to be in the same tutorial.



Case Study



Kotak Ajaib, a division of Television
Kita Corporation, is a manufacturer of two large-screen television models: the
Ajaib Tradisional (AT) has been produced since 2004 and the Ajaib Modern (AM),
a newer model introduced in early 2010. The senior management at Television
Kita Corporation would like a target gross margin of at least 20% for each of
the products in all its divisions. Upon reviewing the latest income statement
for Kotak Ajaib, the senior management at Television Kita Corporation have
decided to concentrate Kotak Ajaib’s marketing resources on the AM model and to
begin phasing out the AT model in the coming year.



The budgeted costs and data for year
2012 are as follows:



Budgeted Sales, Production and Selling
Price











AT

AM

Units to be sold and produced

22,000

4,000

Price per unit (RM)

600

1,140

Budgeted Direct Materials

AT

AM

Raw materials (RM) per unit:

–

In Assembly Department

158.00

484.00

–

In Packing Department

50.00

100.00















14





Budgeted
Direct Labour and Machine Hours










AT

AM

Direct labour hours per unit:

–

In Assembly Department

75 minutes

192 minutes

–

In Packing Department

15 minutes

18 minutes

Machine hours per unit:

–

In Assembly Department

420 minutes

240 minutes

–

In Packing Department

30 minutes

60 minutes


The average direct labour rate is RM18
per hour for the assembly department and RM10 per hour for the packing
department. The average machine hour costs is RM10 per hour for the assembly
department and RM5 per hour for the packing department



Budgeted Overhead Costs



Both products are produced in a single
plant at the Nilai Industrial Park.



Kotak Ajaib uses a Plantwide rate,
with manufacturing overhead being applied on the basis of machine hours.



Kotak
Ajaib’s controller, Mr. Azri Idris, has a gut feeling that something is wrong.
He has been talking to a few costing experts to explore various options. One of
the professors has suggested the use of activity based costing. After reading a
few articles and books, he feels that the activity based concept could address
many of the issues that he has been seeing at Kotak Ajaib.



He
is now advocating the use of activity-based costing to management and has
gathered the information about the company’s budgeted manufacturing overhead
costs for the year ended December 31, 2012.



He has identified six categories of
support systems that were currently being allocated to television production:















Total
Activity

Units of the Cost-

Costs Per Year

Allocation Base

Activities

Activity Drivers

(RM)

AT

AM

Soldering

Number of solder

942,000

1,185,000

385,000

points

Shipments

Number
of shipments

860,000

16,200

3,800

Quality control

Number of inspections

1,240,000

56,200

21,300

Purchase orders

Number of orders

950,400

80,100

109,980

Machine

Number of production

57,600

176,000

16,000

maintenance

runs

Machine set-up

Number
of set-ups

750,000

16,000

14,000






15





Azri has
determined the units of cost allocation base for each of the products, as
follows:













Total

Units of the Cost-Allocation Base

Activity

Costs

AT

AM

Total

Activity Center (Cost Allocation
Base)

(RM)

Soldering

942,000

1,185,000

385,000

1,570,000

Shipments

860,000

16,200

3,800

20,000

Quality control

1,240,000

56,200

21,300

77,500

Purchase orders

950,400

80,100

109,980

190,080

Machine maintenance

57,600

176,000

16,000

192,000

Machine set-ups

750,000

16,000

14,000

30,000


After
completing the analysis, Azri shows his results to Mr. Simon Lee, the Kotak
Ajaib division’s CEO. Simon does not like what he sees, and comments:



“If you show headquarters this
analysis, they are going to ask us to phase out the Ajaib Modern line, which we
have just introduced. This whole costing stuff has been a major problem for us.
First Ajaib Tradisional is not as profitable as we thought, and now Ajaib
Modern.



Looking at the ABC analysis, I see two
problems. First, we do many more activities than the ones you have listed. If
you had included all activities, maybe your conclusions would be different.
Second, you used number of setups and number of inspections as allocation
bases. The number would be different had you used setup-hours and inspection-hours
instead. I know that measurement problems precluded you from using these other
cost-allocation bases, but I believe you ought to make some adjustments to our
current numbers to compensate for these issues. I know you can do better. We can’t
afford to phase out either product.”



Azri knows that the numbers are fairly
accurate. As a quick check, he calculates the profitability of AT and AM using
more and different allocation bases. The set of activities and activity rates
he had used resulted in numbers that closely approximate those based on more
detailed analyses. However, he is also aware that a sizeable portion of Simon’s
bonus is based on division revenues. Phasing out either product would adversely
affect Simon’s bonus.



Azri has a line responsibility to
Simon. Simon is responsible for the recommendations of Azri’s increment and
bonus at year end. Azri also has a staff responsibility to the Group Financial
Controller at Television Kita Corporation. Azri is in a dilemma now. He is
feeling severe pressure from Simon to do something about the costing numbers.



Azri decides to
seek the advice of
Brilliant Consultancy firm. You are
working in Brilliant



Consultancy during your internship. You have been asked to
analyse Kotak Ajaib’s case and write a business report to the manager in charge
of the case in Brilliant Consultancy, Ms. Vanessa Murugam, to assist the latter
understand the situation in Kotak Ajaib better. You would need to cover the
information listed in the next page in your report.









16





Part
A: Calculations (Show detailed workings) (38 marks)



1.) Calculate the unit budgeted costs of direct materials for each
of the products.



(1 marks)



2.) Calculate the unit budgeted costs of direct labour for each of the
products.



(3 marks)3.)Calculate the unit budgeted machine hours and costs of machine
hours for each of the



products.



(4 marks)



4.) Calculate the overhead costs allocation rate under the current
costing system.



(3 marks)5.)Calculate the unit costs, gross margin and gross margin
percentage for each of the products



under the current costing system.



(4 marks)6.)Calculate the costs allocation rate for each of the identified
activities using the proposed


activity based costing system.



(6 marks)


7.) Show an overview of the proposed activity based costing system.



(5 marks)



8.) Calculate
the total and unit costs for manufacturing overhead for each of the products
from the underlying activity cost pools.



(8 marks)9.)Calculate the unit costs, gross margin and gross margin
percentage for each of the products



under the proposed activity based costing system.



(4 marks)



Part B: Analytical
Discussion (44 marks)



1.) Describe the current cost system including its weaknesses.



(8 marks)2.)Describe the proposed activity based costing system, the
benefits from using it, and why


those benefits occur.



(8 marks)3.)Should Kotak Ajaib cease the production of Ajaib Tradisional
model
andfocus entirely on


the production of the Ajaib Modern model? Discuss thoroughly.



(8 marks)



4.) Comment
on the concerns of Mr. Simon Lee’s about the accuracy and limitations of the
proposed activity system.



(6 marks)5.)Suggest how Mr. Azri Idris should response to the ethical
dilemma that he is facing.



(6 marks)


6.) What recommendations would you make to Kotak Ajaib?



(8 marks)









17






Assignment Guidelines



Expectations



The aim of assignment is
to reinforce product-costing concepts and develop student’s analytical, problem
solving and presentation skills.



Marks will be awarded
according to correctness of calculations and soundness of arguments.



Where
computations are relevant, you must show ALL calculations clearly.



Note that your report
should at all times be focused on and refer to Kotak Ajaib and its
circumstances. You should not make general comments (as found in textbooks and
other sources), but instead comment on the situation as it exists at Kotak
Ajaib. If and where you do not apply your report to the specifics of Kotak Ajaib,
you will receive zero marks.



Presentation
of Assignment



You
are to present your assignment in a formal business report format. Your
assignment must contain all elements of a report.You need to organise your
report neatly. Design the layout of your report
carefully in a way that helps the reader understand the discussion in the
report. Use headings and subheadings to help signal to the reader what part of
the discussion they are dealing with. A report will normally include all or some
of the following sections:



Internal Memorandum



Title page



Table of contents



Executive Summary



Introduction



Body of the Report



Conclusion



Appendices



Reference List



Your assignment must be prepared in at
least 1½ line spacing on single sided pages with 1 inch left and right margins,
and 1 inch top and bottom margins. The font size for the characters must be at
least 11 (Times Roman or Arial).



Length of the Assignment



The report should be
limited to a maximum of 1,500 words.Where
explanations are necessary,just answer the
question as you think is appropriate – do not pad answers, just provide a
reasonable response to the question.





18






You
should include calculations in an appendix to the report, but you should show
summaries and/or use the results of the calculations, where appropriate, in the
body of the report.



The word count must
be printed on the assignment cover sheet. Markers cannot be expected to look
for the word count elsewhere. Marks will be deducted if the word count is not
on the assignment cover sheet. Marks will be deducted if the assignment exceed
the word count by 10% of the word count limit – 10% deduction for every extra
100 words or part of.



Please note that the
assignment cover page, memorandum, report cover page, executive summary, the
appendix and reference list of your report are not included in the word count.



Referencing and Plagiarism



You need to ensure that you comply
with Harvard referencing conventions in preparing this assignment and
that plagiarism is not an issue. You are expected to adhere to high standards
of academic integrity and all assignments submitted in this course may be
checked for plagiarism, using text comparison

Reviews

There are no reviews yet.

Be the first to review “accounting”

Your email address will not be published. Required fields are marked *

accounting

$21.00

Description

he Hasting Company began operations on January 1, 2013 and uses the FIFO method in costing its raw material inventory. An analyst is wondering what net income would have been if the company had consistently followed LIFO (instead of FIFO) from the beginning, 1/1/2013. He has the following information available to him:

What would net income have been in 2014 if Hastings had used LIFO since 1/1/2013?

.hbsp.harvard.edu/eproduct/product/financialaccounting/content/item/6196/advexam_1a.png”>

Reviews

There are no reviews yet.

Be the first to review “accounting”

Your email address will not be published. Required fields are marked *

Accounting

$63.00

Description

QUESTION 1

Which of the following is not an equity security?

a. Common stock

b.
Warrants

c. Call options

d. Redeemable preferred stock with a mandatory redemption
period

QUESTION 2

On January 1, 2005, N Inc. purchased 10-year bonds issued by B
Company. The bonds have a face value of $500,000 and pay interest
annually at 8 percent on each December 31. N purchased the bonds
for $550,000. N’s accounting year ends on December 31. N’s
management has chosen to treat the bonds purchased as an
available-for-sale security. There are no other securities in the
available-for-sale portfolio. Assume that on December 31, 2005, the
fair market value of the bonds was $510,000. The company uses the
straight-line method of amortization. What is the amount of
interest income to be reported on the 2005 income
statement?

a.
$35,000

b. $40,000

c. $44,000

d. $45,000

QUESTION 3

At December 31, 2005 and 2006, C Corp. had outstanding 4,000
shares of $100 par value, 6 percent cumulative preferred stock and
20,000 shares of $10 par value common stock. At December 31, 2005,
dividends in arrears on the preferred stock were $12,000. Cash
dividends declared in 2006 totaled $44,000. Of the $44,000, what
amounts were payable on each class of stock?

Preferred Stock

Common Stock

a. $44,000

$0

b. $36,000

$8,000

c. $32,000

$12,000

d. $24,000

$20,000

QUESTION 4

A liability for a cash dividend exists at
the

a. end of each year

b. date of declaration

c. date of record

d. date of payment

QUESTION 5

Coe Corp. issued 20,000 shares of $5 par common stock at $10 per
share. On December 31, 2005, Coe’s retained earnings were $300,000.
In March 2006, Coe reacquired 5,000 shares of its common stock at
$20 per share. In June 2006, Coe sold 1,000 of these shares to its
corporate officers for $25 per share. Coe uses the cost method to
account for its treasury stock. Net income for the year ended
December 31, 2006, was $60,000. At December 31, 2006, what amount
should Coe report as retained earnings?

a. $360,000

b. $365,000

c.
$375,000

d. $380,000

QUESTION 6

William Corp. issued 10,000 shares of its $1 par value common
stock for a building. The building was listed for sale at $500,000.
William’s common stock is currently selling for $45 per share.
William Corp. should record the building
at

a.
$10,000

b. $440,000

c. $450,000

d. $500,000

QUESTION 7

Assume that S Company makes sales of $400,000 during 2004 and
reports the amount as sales revenue on its income statement. Also
assume that the company wishes to delay the reporting of a portion
of that amount for tax purposes and uses the installment sales
method for tax purposes. Assume that $100,000 of collections
occurred during 2004, $150,000 occurred in 2005, and the remainder
will occur in 2006. Assuming a tax rate of 40 percent, what is the
amount of the entry into the Deferred Tax account at the end of the
year 2004?

a. $40,000

b.
$60,000

c.
$120,000

d. $160,000

QUESTION 8

The Company purchases an asset on January 1, 2005, for $200,000.
The straight-line method of depreciation is used for book purposes,
resulting in depreciation of $50,000 per year. An accelerated
method is used for tax purposes, resulting in depreciation of
$80,000, $60,000, $40,000, and $20,000 for the years 2005, 2006,
2007, and 2008, respectively. Assume that the tax rate is 40
percent for all years and that depreciation is the only temporary
difference between book and tax purposes. The 2005 journal entry
would include a

a. debit to Deferred Tax Liability of
$12,000

b. debit to Deferred Tax Liability of $4,000

c. credit to Deferred Tax Asset of
$4,000

d. credit to Deferred Tax Liability of $12,000

QUESTION 9

Which of the following has no effect on comprehensive
income?

a. Unrealized gains and losses on held-to-maturity
investments

b. Unrealized gains and losses on available-for-sale
investments

c. Unrealized gains and losses on trading
securities

d. Realized gains and losses on available-for-sale securities
that were held in previous periods

QUESTION 10

Assume that Grandzol Company believes that $120,000 of a
$600,000 deduction will not be utilized in future periods and that
the tax rate is 40 percent for all periods. What is the amount of
the valuation allowance?

a.
$48,000

b. $120,000

c. $192,000

d. $240,000

QUESTION 11

Information regarding Silly Co.’s portfolio of
available-for-sale securities is as follows:

a. Aggregate cost as of 12/31/05 $170,000

b. Unrealized gains as of 12/31/05 4,000

c. Unrealized losses as of 12/31/05 26,000

d. Net realized gains during 2005 30,000

At December 31, 2004, Silly reported an unrealized holding loss
from available-for-sale securities of $1,500 on the statement of
stockholders’ equity. Assuming the application of SFAS No. 115,
“Accounting for Certain Investments in Debt and Equity Securities,”
what amount should Silly report on its December 31, 2005, balance
sheet as an unrealized holding loss?

a.
$26,000

b. $22,000

c.
$20,500

d. $0

QUESTION 12

Treasury stock is a(n)

a. asset account

b. contra-asset account

c. equity
account

d. contra-equity account

QUESTION 13

On March 1, 2004, Leo
Corp. was formed by issuing 100,000 shares of $1 par value common
stock at $5 per share and 20,000 shares of $100 par value preferred
stock at $101 per share. If Leo earned $35,000 in its first year of
operations, total stockholders’ equity at year end would be

a. $335,000

b. $735,000

c. $2,135,000.

d. $2,555,000

QUESTION 14

Interest received from available-for-sale debt securities should
be reported
as

a. an unrealized holding
gain—income

b. an unrealized holding gain—equity

c. other revenue on the income statement

d. a reclassification adjustment on the statement of
comprehensive income

QUESTION 15

During 2005, Bob Co. issued 5,000 shares of $100 par convertible
preferred stock for $110 per share. One share of preferred stock
can be converted into three shares of Bob’s $25 par common stock at
the option of the preferred shareholder. On December 31, 2006, when
the market value of the common stock was $40 per share, all of the
preferred stock was converted. What amount should Bob credit to
Common Stock and to Additional Paid-in Capital as a result of the
conversion?

Common Stock

Additional Paid-in-Capital

a. $375,000

$175,000

b. $375,000

$225,000

c. $500,000

$50,000

d. $600,000

$0

QUESTION 16

If a company reissued at $20 per share 100 shares of treasury
stock that it had previously acquired for $28 per share and there
wasn’t any Paid-in Capital from Treasury Stock, it would debit

a. Loss on Sale of Treasury Stock for $800

b. Paid-in Capital from Common Stock for $800

c. Retained Earnings for $800

d. Treasury Stock for $800

QUESTION 17

B Corp. issued 200,000 shares of common stock when it began
operations in 2004 and issued an additional 100,000 shares in 2005.
B also issued preferred stock convertible into 100,000 shares of
common stock. In 2006, B purchased 75,000 shares of its common
stock and held it in the treasury. At December 31, 2006, how many
shares of B’s common stock were outstanding?

a. 400,000

b.
325,000

c.
300,000

d. 225,000

QUESTION 18

Assume that Bad Company makes sales of $200,000 during 2004 and
reports the amount as sales revenue on its income statement. Also
assume that the company wishes to delay the reporting of a portion
of that amount for tax purposes and uses the installment sales
method for tax purposes. Assume that $60,000 of collections
occurred during 2004 and the remainder will occur in 2005. What is
the amount of the temporary difference at the end of the year
2004?

a.
$200,000

b.
$140,000

c.
$60,000

d. $0

QUESTION 19

Rent income received in advance that is included for tax
purposes when received, but recorded for book purposes when earned
results in

a. expense items and deductions being taken for tax purposes
before book
purposes

b. expense items and deductions being recorded for book purposes
before tax purposes

c. purposes income being included for tax purposes before
book

d. income being recorded for book purposes before tax
purposes.

QUESTION 20

Debt securities that are classified as available-for-sale
securities are reported on the balance sheet at

a. fair value

b. historical cost

c. amortized cost

d. lower of amortized cost or fair value

Reviews

There are no reviews yet.

Be the first to review “Accounting”

Your email address will not be published. Required fields are marked *

accounting

$11.00

Description

Simmons invested $32,000 into the business for
$32,000 in common stock

Reviews

There are no reviews yet.

Be the first to review “accounting”

Your email address will not be published. Required fields are marked *

accounting

$11.00

Description

Collison and Ryder Company (C&R) has been experiencing declining market conditions for its sportswear division. Management decided to test the assets of the division for possible impairment. The test revealed the following: book value of division’s assets, $26.5 million; fair value of division’s assets, $21 million; sum of estimated future cash flows generated from the division’s assets, $28 million. What amount of impairment loss should C&R recognize?

Reviews

There are no reviews yet.

Be the first to review “accounting”

Your email address will not be published. Required fields are marked *

accounting

$2.00

Description

attached is what i need help with. filling in the blanks. thank you!

Reviews

There are no reviews yet.

Be the first to review “accounting”

Your email address will not be published. Required fields are marked *

Accounting

$16.00

Description

Please assist with this assignment attached .Thank you

Reviews

There are no reviews yet.

Be the first to review “Accounting”

Your email address will not be published. Required fields are marked *

accounting

$5.00

Description

Warnerwoods company uses a perpetual inventory system. It entered
into the following purchases and sales transactions for march. (for specific identification,
the march 9 sale consisted of 80 units from beginning inventory and 340 units
from the march 5 purchase; the march 29 sale consisted of 40 units from the
march 18 purchase and 120 units from the march 25 purchase.)

I need to know:

1. FIFO method:

Cost of Goods Sold _______________________________

Ending Inventory _________________________________

2. LIFO method:

Cost of Goods Sold _______________________________

Ending Inventory __________________________________

3. Weighted Average method:

Cost of Goods Sold _______________________________

Ending Inventory __________________________________

4. Which inventory method would report the
highest Net Income?

5. When prices are rising (inflation), which
inventory method would result in the highest Net Income?

Reviews

There are no reviews yet.

Be the first to review “accounting”

Your email address will not be published. Required fields are marked *

Accounting

$21.00

Description

5. Upon the
recommendation of a physician, Joshua has a dust elimination system installed
in his personal residence. He suffers
from severe allergies. In connection
with this system, Joshua incurs and pays the following amounts during the
current year:

Dust
elimination system and cost of installation $7,000

Increase
in utility bills due to the system 400

Cost
of certified appraisal 500

The
system has an estimated useful life of 5 years.
The appraisal was to determine the value of Joshua’s residence with and
without the system. The appraisal states
that the system increased the value of Joshua’s residence by $3,000. Disregarding percentage limitations, how much
of the above expenditures qualify for the medical expense deduction in the
current year?

a. $7,900.

b. $7,400.

c. $4,500.

d. $4,400.

e. None of the above.

6. In 2010,
Aaron pays $3,000 to become a charter member of Western University’s Athletic
Council. The membership ensures that
Aaron will receive choice seating at all of Western’s home football games. Also in 2010, Aaron pays $600 (the regular
retail price) for season tickets for himself and his wife. For these items, how much qualifies as a
charitable contribution?

a. $0.

b. $600.

c. $2,400.

d. $3,000.

e. None of the above.

7. Eric owns
five activities. He elects not to group
them together as a single activity under the “appropriate economic
unit” standard. He participates for
100 hours in Activity A, 140 hours in Activity B, 240 hours in Activity C, 99
hours in Activity D, and 120 hours in Activity E. Which of the following statements is correct?

a. Eric is a material participant with respect
to Activities A, B, C, D, and E.

b. Eric is a material participant with respect
to Activities B, C, and E only.

c. Activities A, B, C, D and E are all
significant participation activities.

d. Activities B, C and E are all significant
participation activities.

e. None of the above.

8. Wanda owns
four separate activities. She elects not
to group them together as a single activity under the “appropriate economic
unit” standard. Wanda participates for
111 hours in Activity A, 155 hours in Activity B, 115 hours in Activity C, and
120 hours in Activity D. She has one
employee, who works 400 hours in Activity D.
Which of the following statements is incorrect?

a. Losses from all of the activities can be
used to offset Wanda’s active income.

b. Wanda is a material participant with respect
to Activities A, B, C, and D.

c. Wanda is a material participant with respect
to only Activity D.

d. Activities A, B, C, and D are all
significant participation activities.

e. None of the above statements is correct.

9. Sally sells a
passive activity with an adjusted basis of $145,000 for $225,000. Suspended losses attributable to this
property total $35,000. The total gain
and the taxable gain are:

a. $80,000 total gain; $80,000 taxable
gain.

b. $45,000 total gain; $45,000 taxable
gain.

c. $80,000 total gain; $0 taxable gain.

d. $80,000 total gain; $45,000 taxable
gain.

e. None of the above.

10. Sycamore Corporation, a closely held
nonpersonal service corporation, has $300,000 of passive losses, $240,000 of
active business income, and $40,000 of portfolio income. How much of the passive loss may Sycamore
Corporation deduct?

a. $0.

b. $40,000.

c. $240,000.

d. $300,000.

e. None of the above.

11. Andrew, who is single, has $95,000 of salary,
$60,000 of income from a limited partnership, and a $79,000 passive loss from a
real estate rental activity in which he actively participates. His modified adjusted gross income is
$95,000. Of the $79,000 loss, how much
is deductible?

a. $-0-.

b. $19,000.

c. $25,000.

d. $79,000.

e. None of the above.

12. Paul
owns five activities. He elects not to
group them together as a single activity under the “appropriate economic
unit” standard. He participates for
100 hours in Activity A, 145 hours in Activity B, 125 hours in Activity C, 105
hours in Activity D, and 126 hours in Activity E. Which of the following statements is correct?

a. Activities
A, B, C, and E are all significant participation activities.

b. Paul is a material participant with respect
to Activities B, C, D, and E only.

c.
Paul
is a material participant with respect to Activities A, B, C, D, and E.

d. Activities A, B, C, D and E are all significant participation
activities.

e. None of the above.

Reviews

There are no reviews yet.

Be the first to review “Accounting”

Your email address will not be published. Required fields are marked *

accounting

$21.00

Description

“Related Party Losses” Please respond to the following:

  • Section 267 of the IRC disallows a deduction on losses realized on the sale
    of property and a deduction for accrued expenses between a corporation and a
    controlling shareholder. GAAP does not include this disallowance provision.
    Create an argument for allowing a loss on a sales transaction between a
    controlled corporation and shareholder when the transaction includes an
    independent appraisal and the loss is similar to losses incurred in arm’s length
    transactions. Provide an example to support your argument.
  • Suppose clients request that their tax return preparation include the loss
    on the sales transaction identified between the controlling shareholder and
    corporation, as described in Part 1 of this discussion. Analyze the potential
    impact and required disclosures resulting from the inclusion on the financial
    statements and the tax return of the corporation. Examine the implications of
    the uncertain tax position in this situation on the requirements of Circular 230
    and the Statements on Tax Standards (SSTS).

Reviews

There are no reviews yet.

Be the first to review “accounting”

Your email address will not be published. Required fields are marked *

accounting

$38.00

Description

Assignment 4: Tax-Planning Client Letter on Irrevocable Trusts, Gift Tax, and
Estate Tax

Due Week 10 and worth 150 points

Suppose you are a CPA, and your client has requested advice regarding
establishing an irrevocable trust for his two (2) grandchildren. He wants the
income from the trust paid to the children for 20 years and the principal
distributed to the children at the end of 20 years.

Use the Internet and Strayer databases to research the rules regarding
irrevocable trusts, gift tax, and estate tax. Be sure to use the six (6) step
tax research process in Chapter 1 and demonstrated in Appendix A of your
textbook as a guide for your written response.

Write a one to two (1-2) page letter in which you:

  1. Analyze the effect of an irrevocable trust on the gift tax and future estate
    taxes.
  2. Suggest other significant alternatives that the client could use both to
    reduce estate tax and to maximize potential advantages of the payment of gift
    taxes on transfers of property.
  3. Use the six (6) step tax research process, located in Chapter 1 and
    demonstrated in Appendix A of the textbook, to record your research for
    communications to the client.

Your assignment must follow these formatting requirements:

  • Be typed, double spaced, using Times New Roman font (size 12), with one-inch
    margins on all sides; citations and references must follow APA or
    school-specific format. Check with your professor for any additional
    instructions.
  • Include a cover page containing the title of the assignment, the student’s
    name, the professor’s name, the course title, and the date. The cover page and
    the reference page are not included in the required assignment page
    length.

The specific course learning outcomes associated with this assignment
are:

  • Prepare client, internal, and administrative documents that appropriately
    convey the results of tax research and planning.
  • Create an approach to tax research that results in credible and current
    resources.
  • Analyze tax issues regarding the gift tax and the estate tax.
  • Analyze tax issues regarding trusts and estates.
  • Use technology and information resources to research issues in
    organizational tax research and planning.
  • Write clearly and concisely about organizational tax research and planning
    using proper writing mechanics.

Reviews

There are no reviews yet.

Be the first to review “accounting”

Your email address will not be published. Required fields are marked *

accounting

$38.00

Description

Per the text and IRC, a gift occurs when the transfer of property is complete
and the gift is valued at the date of the transfer. Imagine a scenario in which
a client creates an irrevocable trust for his two (2) grandchildren to ensure
college education expenses are paid. The trust agreement requires the
distribution of the income from the trust directly to the college or university
the grandchildren attend for tuition while they are in college and directly to
the grandchildren until age twenty-five (25) after completing college. The
income from the trust is distributed directly to the grandchildren until they
reach age twenty-five (25), if they do not attend college. When the
grandchildren celebrate their twenty-fifth (25th) birthday, the income stream
distribution reverts to the client’s spouse, and the spouse receives the
property upon the death of the client. Examine the gift tax consequences of the
transaction based on the use of the irrevocable trust, as compared to direct
payments to the grandchildren.

  • From the e-Activity and the scenario from Part 1 of this discussion, create
    a tax strategy which ensures that gift tax is paid on the property prior to the
    death of the client and that the client may use the full benefit of the
    gift-splitting election.
  • Reviews

    There are no reviews yet.

    Be the first to review “accounting”

    Your email address will not be published. Required fields are marked *

    accounting

    $38.00

    Description

    “Fairness of the Federal Estate Tax” Please respond to the following:

    • Per the text, a voluntary compliance system is built on the fairness of the
      system. The federal estate tax is often referred to as a death tax on wealthy
      individuals. The Economic Growth and Tax Relief Reconciliation Act (EGTRRA) of
      2001 provided for periodic increases in the exemption amount for decedents who
      die after December 31, 2001, until the filing threshold reached $3.5 million in
      2009. The tax was repealed in 2010 and later reinstated beginning in 2011. From
      the e-Activity, determine one (1) major factor contributing to the fairness of
      estate taxes on wealthy individuals prior to EGTRRA and the current structure of
      the federal estate tax.
    • Per the text, several arguments exist for the repeal of the estate tax. From
      the e-Activity, defend the most significant argument advanced in the repeal of
      the estate tax by its opponents. Justify your

    Reviews

    There are no reviews yet.

    Be the first to review “accounting”

    Your email address will not be published. Required fields are marked *

    ACCOUNTING

    $32.00

    Description

    This is a comprehensive project evaluation problem bringing together much of what you have learned in this and previous chapters. Suppose you have been hired as a financial consultant to Defense Electronics, Inc. (DEI), a large, publicly traded firm that is the market share leader in radar detection systems (RDSs). The company is looking at setting up a manufacturing plant overseas to produce a new line of RDSs. This will be a five-year project. The company bought some land three years ago for $6 million in anticipation of using it as a toxic dump site for waste chemicals, but it built a piping system to safely discard the chemicals instead. The land was appraised last week for $8.4 million. The company wants to build its new manufacturing plant on this land; the plant will cost $13.2 million to build. The following market data on DEI’s securities are current:Debt:12,000 6.5 percent coupon bonds outstanding, 15 years to maturity, selling for 92 percent of par; the bonds have a $1,000 par value each and make semiannual payments.Common stock:252,000 shares outstanding, selling for $73 per share; the beta is 1.3.Preferred stock:16,000 shares of 5 percent preferred stock outstanding, selling for $60 per share.Market:7.5 percent expected market risk premium; 4 percent risk-free rate.DEI uses G. M. Wharton as its lead underwriter. Wharton charges DEI spreads of 8.5 percent on new common stock issues, 6 percent on new preferred stock issues, and 3.5 percent on new debt issues. Wharton has included all direct and indirect issuance costs (along with its profit) in setting these spreads. Wharton has recommended to DEI that it raise the funds needed to build the plant by issuing new shares of common stock. DEI’s tax rate is 33 percent. The project requires $660,000 in initial net working capital investment to get operational. Note: Assume that the initial net working capital does not require flotation costs. Also note that the firm wishes to maintain a constant capital structure.
    Required:(a)The project’s initial Time 0 cash flow is $ , taking into account all side effects. (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places, e.g. 32.16.)(b)The new RDS is somewhat riskier than a typical project for DEI, primarily because the plant is being located overseas. Management has told you to use an adjustment factor of +2 percent to account for this increased riskiness. The appropriate discount rate to use when evaluating DEI’s project is percent. (Do not include the percent sign (%). Round your answer to 2 decimal places, e.g. 32.16.)(c)The manufacturing plant has a 8-year tax life, and DEI uses straight-line depreciation. At the end of the project (i.e., the end of Year 5), the plant can be scrapped for $4.2 million. The aftertax salvage value of this manufacturing plant is $ . (Round your answer to 2 decimal places, e.g. 32.16.)(d)The company will incur $359,000 in annual fixed costs. The plan is to manufacture 9,000 RDSs per year and sell them at $8,000 per machine; the variable production costs are $7,000 per RDS. The annual operating cash flow, OCF, from this project is $ . (Round your answer to 2 decimal places, e.g. 32.16.)(e)DEI’s comptroller is primarily interested in the impact of DEI’s investments on the bottom line of reported accounting statements. The accounting break-even quantity of RDSs sold for this project is units. (Round your answer to the nearest whole number, e.g. 32.)(f)Finally, DEI’s president wants you to throw all of your calculations, assumptions, and everything else into the report for the chief financial officer; all he wants to know is what the RDS project’s internal rate of return, IRR, and net present value, NPV, are. You will report that the IRR is percent (Do not include the percent sign (%). Round your answer to 2 decimal places, e.g. 32.16) and NPV is $ (Negative amount should be indicated by a minus sign. Round your answer to 2 decimal places, e.g. 32.16.).

    Reviews

    There are no reviews yet.

    Be the first to review “ACCOUNTING”

    Your email address will not be published. Required fields are marked *

    ACCOUNTING

    $11.00

    Description

    (TCO B) Which of the following is true of qualitative research? (Points : 6) It is a structured measurement approach that permits a range of possible responses. It is indirect in nature, so consumers may be less guarded. It requires large sample sizes. Its results can be easily generalized to broader populations. It generally results in similar results and conclusions across researchers. 6. (TCO B) Any occasion on which a customer encounters the brand and product—from actual experience to personal or mass communications to casual observation is a customer ________ . (Points : 6) touch point point of order point of difference pivot point point of parity 7. (TCO C) ________ constitutes the relatively homogeneous and enduring divisions in a society, which are hierarchically ordered and whose members share similar values, interests, and behavior. (Points : 6) a culture a subculture a social class a family a group 8. (TCO C) In the consumer buying decision process, A consumer who uses Google to find comparative reports on new automobiles, is most likely using which of the following information sources for assistance? (Points : 6) personal public experiential commercial under-the-radar 9. (TCO C) Marriott Hotels customizes rooms and lobbies according to location. Northeastern hotels are sleeker and more cosmopolitan. Southwestern hotels are more rustic. This is an example of ________ segmentation. (Points : 6) demographic behavioral psychographic geographic cultural 10. (TCO C) The science of using psychology and demographics to better understand consumers is defined as____________. (Points

    Reviews

    There are no reviews yet.

    Be the first to review “ACCOUNTING”

    Your email address will not be published. Required fields are marked *

    Accounting!!!!!!!!!!!!!

    $26.00

    Description

    1) A cost management system provides ________.
    A) measures of inventory value and cost of goods sold for financial reporting
    B) cost information for strategic management decisions
    C) cost information for operational control
    D) all of the above

    2) Cost accounting is that part of the cost management system that measures costs for the sole purpose of financial reporting. True or False

    3) Which of the following costs is a direct cost to a manufactured product?
    A) depreciation expense on factory equipment used for the product
    B) the wages of an assembly worker who works specifically on the product
    C) accountants who accumulate the costs of the product
    D) a factory supervisor who oversees the production of several different types of products

    4) Physically tracing ________ costs is usually straightforward, but allocating ________ costs is usually more complex.
    A) indirect; direct
    B) direct; product
    C) direct; indirect
    D) unallocated; indirect

    5) Unallocated costs ________.
    A) have an identifiable relationship to a cost pool
    B) lack an identifiable relationship to a cost pool
    C) have an identifiable relationship to a cost object
    D) lack an identifiable relationship to a cost object

    6) Unallocated costs ________.
    A) are not recorded in the cost accounting system
    B) are not allocated to cost objects
    C) are direct costs for service firms
    D) are indirect costs for merchandising firms

    7) The manufacturing division of an electronics company uses activity-based costing. The company has identified three activities and the related cost drivers for indirect production costs.

    Activity Cost Driver
    Activity 1 Direct materials cost
    Activity 2 Direct labor cost
    Activity 3 Kilowatt hours

    Three types of products are produced. Direct costs and cost-driver activity for each product for a month are as follows:

    Product A Product B Product C
    Direct materials cost $75,000 $50,000 $125,000
    Direct labor cost $6,000 $1,000 $3,000
    Direct labor hours 1,000 500 1,500
    Kilowatt hours 150,000 200,000 150,000

    Indirect production costs for the month are as follows:

    Activity 1 $12,000
    Activity 2 20,000
    Activity 3 16,000
    Total $48,000

    Required:
    A) Compute the indirect production costs allocated to each product using the ABC system.
    B) Compute the indirect production costs allocated to each product using a traditional costing system. Assume indirect production costs are allocated to each product using the cost driver: direct labor hours.
    8) Historical or past information can have an indirect bearing on a decision because ________.
    A) the past can be changed
    B) it can help predict the future
    C) past decisions are always good decisions
    D) none of the above

    9) ________ is the predicted future costs and revenues that will differ among alternative courses of action.
    A) Relevant information
    B) Sunk costs
    C) Predictable information
    D) Target pricing

    10) Information is relevant in business decisions if it is a(n) ________.
    A) expected future cost or it differs among alternatives
    B) expected future cost and it differs among alternatives
    C) historical cost and it differs among alternatives
    D) expected future cost that differs from a past cost

    11) The accountant’s role in decision making involves providing the relevant information for decision makers. True or False

    12) If perfectly accurate and relevant information is not available for decision making, the accountant should consider using information that is ________.
    A) precise but irrelevant
    B) imprecise but irrelevant
    C) imprecise but relevant
    D) imprecise but timely

    13) In decision making, relevance is more crucial than ________.
    A) precision
    B) predictability
    C) variable costs
    D) fixed costs

    14) The ________ approach is useful for short-run decisions and the ________ approach is useful for long-run decisions.
    A) contribution; absorption
    B) absorption; contribution
    C) full costing; target costing
    D) full costing; contribution
    Comment on why an MBA should be knowledgeable about contribution and absorption methods. Short answer please.

    15) Washington Company has the following data about its only product:

    Direct materials used $200,000
    Direct labor 80,000
    Indirect manufacturing?fixed 100,000
    Selling and administrative?fixed 300,000
    Indirect manufacturing?variable 20,000
    Selling and administrative?variable 60,000
    Selling price(per unit) 100

    Units produced and sold 10,000

    Washington Company uses the absorption approach. What is the gross margin?
    A) $240,000
    B) $540,000
    C) $600,000
    D) $660,000

    16) Timmerman Company has budgeted sales of $30,000 with the following budgeted costs:
    Direct materials $6,300
    Direct labor 4,100
    Variable factory overhead 3,700
    Fixed factory overhead 5,600
    Variable selling and administrative costs 2,400
    Fixed selling and administrative costs 3,200

    Required:

    Compute the average target markup percentage for setting prices as a percentage of:
    A) Total costs
    B) Total variable costs
    C) Variable manufacturing costs
    D) Total manufacturing costs

    17 ) Stangle Company manufactures ties. When 28,000 ties are produced, the costs per unit are:
    Direct materials $0.60
    Direct manufacturing labor 3.00
    Variable manufacturing overhead 1.20
    Fixed manufacturing overhead 1.60
    Variable selling 0.80
    Fixed selling 1.13

    The ties normally sell for $22 each. The company has received a special order for 2,000 ties at $10.00 per tie. The company has excess capacity.

    Required:
    Compute the amount by which the operating income would change if the order were accepted.
    Comment on other non –numeric factors that would influence your decision as a manager to accept or reject a special order. See your lecture notes, this answer will not be found in the text book.

    18) An opportunity cost is ________.
    A) the additional costs generated by a proposed alternative
    B) the difference in total cost between two alternatives
    C) a cash disbursement in the future
    D) the maximum available benefit foregone by using a resource for a particular purpose instead of the best alternative use

    19) Company XYZ is a small company with limited expertise with information technology. Company XYZ has a contract with Company ZZ. Company ZZ handles all of Company XYZ’s information technology needs. For Company XYZ, this is an example of ________.
    A) joint costs
    B) joint decision making
    C) outsourcing
    D) technology transfer

    20)What would be a consideration in a make-or-buy decision?
    A) excess capacity
    B) variable factory overhead costs
    C) rental income from idle facilities when not making a part
    D) all of the above

    21)Fixed overhead costs that will continue regardless of a make-or-buy decision are ________ to the make-or-buy decision.
    A) relevant
    B) irrelevant
    C) avoidable
    D) incremental

    22) Goldwater Company manufactures a part for its production cycle. The annual costs per unit for 10,000 units of the part are as follows:

    Direct materials $20.00
    Direct labor 15.00
    Variable factory overhead 16.00
    Fixed factory overhead 10.00
    Total costs $61.00

    The fixed factory overhead costs are unavoidable. Olson Company has offered to sell 10,000 units of the same part to Goldwater Company for $60 per unit. The facilities currently used to make the part could be used to make 10,000 units per year of a new product that has a contribution margin of $20 per unit. No additional fixed costs would be incurred with the new product. Goldwater Company should ________.
    A) make the part to save $10,000
    B) make the part to save $90,000
    C) make the new product and buy the part to save $90,000
    D) make the new product and buy the part to save $110,000

    Comment on some of the issues of buying critical parts from a vendor verses manufacturing them yourself. See lecture notes, answer is not found in the text.

    23) Each year, Mother Company purchases 8,000 units of a part that it needs for production of its product. The supplier notified Mother Company that a price increase will take effect shortly, which will bring the price of the part to $25 per part. Mother Company is considering the use of idle facilities to produce the part. The annual production costs to produce the needed 8,000 parts are as follows:

    Direct materials $17,500
    Direct labor 30,000
    Indirect production costs?variable 14,000
    Indirect production costs?fixed 33,500

    The idle facilities could also be rented out at an annual rent of $99,000. All the fixed indirect production costs are avoidable.

    Required:
    Determine if Mother Company should buy the part or produce it internally.

    24) Olson Company has three departments. Data for the most recent year is presented below:

    Dept. C Dept. A Dept. T
    Sales $4,000 $1,920 $2,240
    Variable expenses 3,280 1,420 520
    Unavoidable fixed expenses 480 180 440
    Avoidable fixed expenses 555 265 360
    Operating income(loss) $(315) $55 $920

    Olson Company is considering eliminating Dept. C because it is operating at a loss.

    Required:
    A) Compute the change in operating income if Olson Company eliminates Dept. C and does not replace it.
    B) Compute the change in operating income if Olson Company eliminates Dept. C and doubles the sales of Dept. T without increasing fixed costs.

    25) A major benefit of effective budgeting is that ________.
    A) it compels managers to think ahead
    B) it aids managers in communicating objectives to employees
    C) it provides benchmarks to evaluate subsequent performance
    D) all of the above

    26) The most effective budget processes facilitate communication from top management to ________ and from lower level managers and employees to ________.
    A) the SEC; the audit committee
    B) stockholders; creditors
    C) lower level managers and employees; top management
    D) creditors; stockholders

    27) A major drawback of using historical results for judging current performance is that ________.
    A) past results may be inaccurate
    B) results may refer to a different manager
    C) inefficiencies may be concealed in past results
    D) managers may have cooked the books

    28) Budgets are generally more effective if they are ________.
    A) created with the active participation of all affected employees
    B) understood and accepted by affected managers
    C) supported by top management
    D) all of the above

    29) Managers may ________ their budgeted costs or ________ their budgeted revenues to create a budget target that is easier to achieve.
    A) understate; overstate
    B) overstate; understate
    C) understate; understate
    D) overstate; overstate

    30) A sales forecast is ________.
    A) a prediction of sales under a given set of conditions
    B) the sales budget
    C) based on input from the board of directors
    D) based on input from the audit committee

    31) Which of the following statements about long-range plans is FALSE?
    A) Long-range plans provide forecasted financial statements for five to ten year periods.
    B) Long-range plans guide day-to-day operations.
    C) Companies coordinate long-range plans with capital budgets.
    D) A decision made during long-range planning is the acquisition of a plant building.

    32) ________ set the overall goals and objectives of the organization.
    A) Capital budgets
    B) Cash budgets
    C) Master budgets
    D) Strategic plans

    33) Which of the following is a component of the financial budget?
    A) budgeted balance sheet
    B) budgeted income statement
    C) sales budget
    D) purchases budget

    34) What is the final result of the operating budget process?
    A) budgeted balance sheet
    B) budgeted income statement
    C) budgeted cash flow statement
    D) cash budget

    35) A decision made during long-range planning includes whether to delete a product from a company’s product line. True or False.

    36) Bates Corporation has the following sales budget:

    Month Budgeted Sales
    May $84,000
    June 100,000
    July 92,000
    August 116,000
    September 98,000

    Credit sales are 80% of total sales. Collections of credit sales are 80% in the month of sale, 15% in the month after sale and 5% are never collected.

    Required:
    Prepare a schedule of cash collections for June, July and August.
    Answer: June July August
    Cash sales $20,000 $18,400 $23,200
    Collections of credit sales:
    Current month 64,000 58,880 74,240
    Previous month 10,080 12,000 11,040
    Total collections $94,080 $89,280 $108,480

    Extend the three month to an annual budget.
    Based on the annual budget that you have just calculated, comment on what the line items of the following years budget need the most attention from you the manager. What are some of the possible errors that can occur if you prepare subsequent budgets by simply increasing a line item by a percentage? For example annual sales of 246,400 will increase by 7 percent to $263,648 (246,400 X 1.07).
    Comment on why a well prepared well thought out budget is a good offense as well as a good defense.
    Comment on how you would obtain information in estimating critical line items of the budget.
    37) Divine Intervention Company uses activity-based costing. The company is trying to estimate the costs of the processing activity in the factory. The company has developed the following flexible budget formula:

    Y = $10.50X + $13,000

    Where: Y = Total processing cost per quarter and X = Number of machine hours

    What are the expected total processing costs if 10,000 machine hours are expected next quarter?
    A) $13,000
    B) $105,000
    C) $113,000
    D) $118,000

    38) Puppy Company planned to produce 12,000 units. This level of activity required 20 setups at a cost of $22,000 plus $500 per setup. Actual production was 10,000 units, requiring 15 setups. Actual setup cost was $26,000. At 10,000 units, what is the flexible budget amount for total setup costs?
    A) $7,500
    B) $22,000
    C) $26,000
    D) $29,500

    Please see Page: 308 of the text book
    39) Which is NOT a reason for a static budget variance?
    A) Actual sales volume was higher than projected sales volume.
    B) Actual variable costs per unit were higher than expected variable costs per unit.
    C) Actual fixed costs per unit were higher than expected fixed costs per unit.
    D) Actual sales volume in current period was higher than projected sales volume in last period.
    Please see Page: 308 of the text book

    Reviews

    There are no reviews yet.

    Be the first to review “Accounting!!!!!!!!!!!!!”

    Your email address will not be published. Required fields are marked *

    accounting!!!!!!!!!!!!!!!!!!!!!!!

    $16.00

    Description

    Kimberly Fahringer Chapter 9 and 10 questions

    1. Create a parable (in the vein of Bastiat’s parable) that would help someone unfamiliar with finance understanding the following concepts: opportunity cost concept, Be sure to address a concept other than opportunity cost. This may include compounding, discounting, annuity payments and perpetuity.

    2. Analyze the steps involved in time value analysis to determine the challenges to health care organizations making financial decisions, as well as possible steps they could take to address those challenges.

    3. Briefly describe a healthcare organization with which you are familiar (local hospital such as St. Ann’s Westerville, OH, dentist office or family practice) and how that organization could apply concepts of diversifiable risks, portfolio risk, corporate risk, market risk, market beta, stand alone risk, and capital asset pricing model. Provide specific examples to support your response.

    4. For the same organization discuss which type of risk would be most relevant (stand alone, corporate or market). Explain your rationale.

    Reviews

    There are no reviews yet.

    Be the first to review “accounting!!!!!!!!!!!!!!!!!!!!!!!”

    Your email address will not be published. Required fields are marked *

    accounting!!!!!!!!!!!!

    $16.00

    Description

    1. Firm A has $10,000 in assets entirely financed

    with equity. Firm B also has $10,000 in assets, but these assets are financed

    by $5,000 in debt (with a 10 percent rate of interest) and $5,000 in

    equity. Both firms sell 10,000 units of output at $2.50 per unit. The

    variable costs of production are $1, and fixed production costs are $12,000. (To

    ease the calculation, assume no income tax.)

    a. What is the operating income (EBIT) for

    both firms?

    b. What are the earnings after interest?

    c. If sales increase by 10 percent to 11,000 units, by what percentage will each firm’s earnings after interest increase? To answer the question, determine the earnings after taxes and compute the

    percentage increase in these earnings from the answers you derived in part b.

    d. Why are the percentage changes different?

    Reviews

    There are no reviews yet.

    Be the first to review “accounting!!!!!!!!!!!!”

    Your email address will not be published. Required fields are marked *

    accounting!!

    $3.00

    Description

    Olympic inc had the following positive and negative cash flows during the current year

    Positive Cash Flows:

    Recieved from Customers – $240,000

    Interest & Dividends – $50,000

    Sale of plant assets – $330,000

    Negative Cash Flows

    Paid to suppliers and employees – $127,000

    Purchase of Investments – $45,000

    Purchase of treasury stock – $36,000

    Determine the amount of cash used for or provided by for operating activities by the direct method.

    Reviews

    There are no reviews yet.

    Be the first to review “accounting!!”

    Your email address will not be published. Required fields are marked *

    accounting

    $5.00

    Description

    #1: The accounting standards and concepts used in the preparation of the financial statements are the:

    • Generally Authorized Accounting Procedures.
    • Generally Applied Accounting Procedures.
    • Generally Authorized Auditing Practices.
    • Generally Accepted Accounting Principles

    #2: The accounting equation is:

    • Revenue – Expense = Liabilities
    • Assets = Liabilities + Equity
    • Assets = Liabilities – Equity
    • Assets + Liabilities = Equity

    #3: The Income Statement shows:

    • Assets = Liabilities + Equity
    • Income minus expense = net income
    • Beginning retained earnings plus net income minus dividends = ending retained earnings
    • Beginning retained earnings minus net income minus dividends = ending retained earnings

    #4: The Statement of Retained earnings shows:

    • Assets = Liabilities + Equity
    • Income minus expense = net income
    • Beginning retained earnings minus net income minus dividends = ending retained earnings
    • Beginning retained earnings plus net income minus dividends = ending retained earnings

    #5: Retained Earnings represents:

    • The total cash retained by the business
    • The total assets retained by the business
    • The net income retained by the business
    • The dividends retained by the business

    #6: Which of the following is not one of the four financial statements?

    • Income Tax Statement
    • Balance Sheet
    • Income Statement
    • Statement of Retained Earnings
    • Statement of Cash Flow

    #7: Which of the following is true regarding the income statement?

    • The income statement shows revenue minus expense equals net income
    • The income statement reports revenues, expenses, and liabilities
    • The income statement only reports revenue for which cash was received at the point of sale
    • The income statement reports the financial position of a business at a particular point in time

    #8: Which of the following is false regarding the balance sheet?

    • The accounts shown on a balance sheet represent the basic accounting equation of assets equals liabilities plus equity.
    • The retained earnings balance shown on the balance sheet must agree to the ending retained earnings balance shown on the statement of retained earnings.
    • The balance sheet summarizes the net changes in specific account balances over a period of time.
    • The balance sheet reports the amount of assets, liabilities, and stockholders equity of a business at a point in time.

    #9: Which of the following regarding retained earnings is false?

    • Retained earnings is increased by net income.
    • Retained earnings is a component of stockholders equity on the balance sheet.
    • In this course we will be talking about two equity accounts. Common Stock represents the amount of money you invested in the business. Retained earnings is an asset on the balance sheet.
    • Retained earnings represents earnings that were not distributed to stockholders in the form of dividends.

    Reviews

    There are no reviews yet.

    Be the first to review “accounting”

    Your email address will not be published. Required fields are marked *