accounting help

$32.00

Description

Pleas show work.

QUESTION #1

Using the following selected items from the comparative balance sheet of Anders Company, illustrate horizontal and vertical analysis.

December 31, 2009 December 31, 2008

Accounts Receivable $ 900,000 $ 600,000

Inventory 975,000 750,000

Total Assets 4,000,000 2,500,000

QUESTION #2

The financial statements of Dobson Company appear below:

DOBSON COMPANY

Comparative Balance Sheet

December 31,

Assets 2009 2008

Cash……………………………………………………………………………………… $ 35,000 $ 40,000

Short-term investments…………………………………………………………… 15,000 60,000

Accounts receivable (net)………………………………………………………… 50,000 30,000

Inventory……………………………………………………………………………….. 50,000 70,000

Property, plant and equipment (net)………………………………………….. 250,000 300,000

Total assets ……………………………………………………………………… $400,000 $500,000

Liabilities and stockholders’ equity

Accounts payable…………………………………………………………………… $ 10,000 $ 30,000

Short-term notes payable………………………………………………………… 40,000 90,000

Bonds payable……………………………………………………………………….. 88,000 160,000

Common stock………………………………………………………………………. 160,000 145,000

Retained earnings…………………………………………………………………… 102,000 75,000

Total liabilities and stockholders’ equity………………………………… $400,000 $500,000

DOBSON COMPANY

Income Statement

For the Year Ended December 31, 2009

Net sales……………………………………………………………………………….. $360,000

Cost of goods sold………………………………………………………………….. 198,000

Gross profit……………………………………………………………………………. 162,000

Expenses

Interest expense……………………………………………………………….. $12,000

Selling expenses……………………………………………………………….. 40,000

Administrative expenses…………………………………………………….. 59,000

Total expenses…………………………………………………………….. 111,000

Income before income taxes……………………………………………………. 51,000

Income tax expense……………………………………………………………….. 15,000

Net income……………………………………………………………………………. $ 36,000

Additional information:

a. Cash dividends of $9,000 were declared and paid in 2009.

b. Weighted-average number of shares of common stock outstanding during 2009 was 30,000 shares.

c. Market value of common stock on December 31, 2009, was $21 per share.

Instructions

Using the financial statements and additional information, compute the following ratios for Coulter Company for 2009. Show all computations.

Computations

1. Current ratio _________.

2. Return on common stockholders’ equity _________.

3. Price-earnings ratio _________.

4. Acid-test ratio _________.

5. Receivables turnover _________.

6. Times interest earned _________.

7. Profit margin _________.

8. Days in inventory _________.

9. Payout ratio _________.

10. Return on assets _________.

QUESTION #3

Gumble Corporation had income from continuing operations of $300,000 for the year ended December 31, 2008. It also had the following items (before income taxes):

1. Extraordinary flood loss of $150,000.

2. Loss of $60,000 on discontinuance of a division.

All items are subject to income taxes at a 30% tax rate.

Instructions

Prepare a partial income statement, beginning with income from continuing operations.

QUESTION #4

Presented below is a list of costs and expenses incurred in the factory by Nu-Way Corporation, a manufacturer of recreational vehicles.

____ 1. Property taxes on the factory land

____ 2. Nails and glue used in production

____ 3. Cabinet maker’s wages

____ 4. Factory supervisors salaries

____ 5. Metal used in manufacturing

____ 6. Depreciation on factory machines

____ 7. Factory utilities

____ 8. Carpeting for the recreational vehicles

____ 9. Property taxes on the factory building

____ 10. Insurance on factory equipment

Instructions

Classify the above items into the following categories:

DM Direct Materials

DL Direct Labor

MO Manufacturing Overhead

QUESTION #5

For each item, identify all applicable cost labels. Use the following code in your answer:

1 Product Cost

2 Period Cost

a. Advertising _________

b. Direct materials used _________

c. Sales salaries _________

d. Indirect factory labor _________

e. Repairs to office equipment _________

f. Factory manager’s salary _________

g. Direct labor used _________

h. Indirect materials _________

QUESTION #6

Among the items that Gentry Print Shop accounts for are the following:

1. Direct labor _________

2. Office supplies used _________

3. Depreciation on printing machines _________

4. Finished goods inventory, 12/31 _________

5. Raw materials inventory, 1/1 _________

6. Cost of goods manufactured _________

7. Work in process, 1/1 _________

8. Office supplies inventory, 12/31 _________

9. Indirect labor _________

10. Heat and electricity for the print shop _________

Gentry Print Shop prepares the following schedule and financial statements on a yearly basis:

(a) Cost of goods manufactured schedule.

(b) Income statement.

(c) Balance sheet.

Instructions

For each item, indicate by using the appropriate letter(s) the schedule and/or financial statements in which the item will appear.

QUESTION #7

From the account balances listed below, prepare a schedule of cost of goods manufactured for Timmons Manufacturing Company for the month ended December 31, 2008.

Account Balances

Finished Goods Inventory, December 31 $42,000

Factory Supervisory Salaries 12,000

Income Tax Expense 18,000

Raw Materials Inventory, December 1 12,000

Work In Process Inventory, December 31 25,000

Sales Salaries Expense 14,000

Factory Depreciation Expense 8,000

Finished Goods Inventory, December 1 35,000

Raw Materials Purchases 95,000

Work In Process Inventory, December 1 30,000

Factory Utilities Expense 4,000

Direct Labor 70,000

Raw Materials Inventory, December 31 19,000

Sales Returns and Allowances 5,000

Indirect Labor 21,000

QUESTION #8

Listed below are selected items for Klugman Company at December 31, 2008.

Finished goods inventory $35,000 Short-term investments $28,000

Cash 20,000 Raw materials inventory 12,000

Prepaid expenses 2,000 Work in process inventory 18,000

Accounts receivable 4,000 Supplies 500

Instructions

Prepare the current assets section of the balance sheet. (Include a complete heading.)

QUESTION #9

Finn Manufacturing Company uses a job order cost accounting system and keeps perpetual inventory records. Prepare journal entries to record the following transactions during the month of June.

June 1 Purchased raw materials for $20,000 on account.

8 Raw materials requisitioned by production:

Direct materials $8,000

Indirect materials 1,000

15 Paid factory utilities, $2,100 and repairs for factory equipment, $3,000.

25 Incurred $84,000 of factory labor.

25 Time tickets indicated the following:

Direct Labor (5,000 hrs $12 per hr) = $60,000

Indirect Labor (3,000 hrs $8 per hr) = 24,000

$84,000

QUESTION #10

Martin Co. applies manufacturing overhead based on direct labor hours. Information concerning manufacturing overhead and labor for the year are as follows:

Actual manufacturing overhead $118,000

Estimated manufacturing overhead $110,000

Direct labor hours incurred 4,800

Direct labor hours estimated 5,000

Compute the predetermined overhead rate AND the amount of applied manufacturing overhead.

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accounting help

$17.00

Description

Calculating Activity-Based Costing Overhead Rates

Assume that manufacturing overhead for Glassman Company in
the previous exercise consisted of the following activities and costs:

Setup(1,000setup hours)…………………………………………$146,000

Production Scheduling (400batches)…………………………..60,000

Production Engineering (60 change orders)…………………90,000

Supervision (2,000 direct labor hours)………………………….56,000

Machine Maintenance (12,000 machine hours)…………..96,000

Total Activity Costs……………………………………………………$460,000

The following additional data were provided for Job 845:

Direct Materials
Costs…………………………………………………………………………………………$8,000

Direct labor cost (5 Milling direct labor hours; 35
Finishing direct labor hours)……..1000

Setup hours………………………………………………………………………………………………………….5 hours

Production Scheduling……………………………………………………………………………………….. 1
batch

Machine hours used (25 Milling machine hours;

5 finishing machine hours)……………………………………………………………………………………30
hours

Production engineering……………………………………………………………………………………3
change orders

Required

a.
Calculate the cost per unit of activity driver
for each activity cost category.

b.
Calculate the cost of Job 845 using ABC to
assign the overhead costs.

c.
Calculate the cost of Job 845 using the
plantwide overhead rate based on machine hours calculated in the previous
exercise.

d.
Calculate the cost of Job 845 using a machine
hour departmental overhead rate for the Milling Department and a direct labor
hour overhead rate for the Finishing Department

Data for 2014 to solve (d)

Milling Department manufacturing overhead………………………………………………… $362,000

Finishing Department manufacturing overhead………………………………………………..130,000

Machine hours used

Milling Department……………………………………………………………………………………10,000 hours

Finishing Department………………………………………………………………………………….2,000 hours

Labor hours used

Milling Department……………………………………………………………………………………….1,000 hours

Finishing
Department…………………………………………………………………………………….1,000 hours

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accounting help

$24.00

Description

1. Dilmar’s Safety First Corporation is evaluating the inclusion of a new safety id screening device. As the company risk manager you have to evaluate whether or not the new device is a good investment. Conduct a Net Present Value analysis. Determine whether or not the NPV analysis alone justifies the purchase of the new screening device.
The particulars are: The screening device will cost $300,000. The maintenance will be $4,000 per year. The screening device needs special swipe cards that will cost $6,000 per year. It is expected that the insurance premium savings will be $40,000 per year. Loss reduction is expected to amount to $80,000 per year. The screening device has a seven year useful life with zero salvage value. The company is in the 35% tax bracket. Gerardo has determined that the cost of capital for the firm is the appropriate discount rate, that rate is 8%.

PVA formula =

PV=

Time Zero (PV) Years (1-5)
Equipment + Installation costs

Loss Reduction
Premium Savings
Maintenance
Other costs
Before Tax cash flow
Depreciation (straight line)

Taxable base
Taxes 35%
Income after Taxes
Depreciation Reversal
After Tax cash flows
PV discounting

PV time zero cash flows $

Depreciation (straight line= initial cost/ # of years of useful life)

A. A health insurance policy contains a $200 calendar-year deductible, an 80 percent coinsurance provision, and a $2,500 out-of-pocket cap. If a $10,000 covered claim is the only claim made this year, the insurance company will pay

B. A health insurance policy contains a $200 per-cause deductible, a 75 percent coinsurance provision, and a $2,000 coinsurance cap. If a $10,000 covered claim is the only claim made this year, the insured would have to pay

2. What is a qualified plan? What are the differences between a defined contribution and a defined benefit plan? What does ERISA stand for? What employee base is eligible for each of the following: 401(k), 403(b), and Keogh? What is vesting?

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Accounting help

$42.00

Description

I am in an accounting class and am in need of spreadsheets P5-35A and P6-42A Does anyone have them?

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accounting help

$34.00

Description

The
Wine Depot, located in Santa Barbara, California, imports and sells high-
quality wine from around the world. Owner Barbara Fairfield is curious to see
how Excel might help her manage the business and account for its inventory. Her
husband, Bud, is the accountant in the family but hasn’t had much experience
with Excel. He’s hired you to help him construct several worksheets to help the
business better understand the financial and managerial aspects of the company.

To begin, you decide to create a worksheet of some of Barbara’s wine inventory.
Start with worksheet ch2-06. Format the company name and worksheet title bold
and italics. Format the title of each column of data bold with a bottom border.

5455

Format
all values for the column Price as Accounting Number Format. Add two column
labels, Quantity and Value, to the right of the existing data and then insert
quantity amounts as shown below [Note: SKU (Stock Keeping Unit) is a unique
identifier for each of the distinct products and services that can be ordered from
a supplier.]:

SKU

Quantity

17521

4

16716

10

16528

12

16739

5

15347

7

17539

3

11599

1

14539

5

17840

12

13883

12

15966

24

17454

24

17024

10

16554

8

17425

7

17549

3

17578

2

17275

1

Top of Form

nsert a formula to
calculate value as quantity times price in cell 19, then fill- down this
formula for all cells in the table. Insert a text label “Total” in cell H28 and
a formula to calculate the total value in cell I28. Insert two additional rows
after row 27. Add two American Syrah wines in those two rows: Carhatt, $34 (750
ml, year 2000, SKU 16769), quantity 10; and Cafaro, $35 (750 ml, year 2000, SKU
16874), quantity 15. Delete the row containing the American Merlot from
Wildhorse. Change the formatting of the Price and Value columns to include no
decimals. After using Excel’s Help function to learn how to sort items in a
worksheet, sort the information on your worksheet by location and then by type,
in ascending order. Change the name of Sheet1 to “Pricing.” Create a copy of
this worksheet and place it before Sheet2, then change the name of this sheet
to “Cost.” Add a label at cell C4 of the Cost sheet called Cost % in Bold,
Italics. Type 60% as the cost percentage in cell D4 of the Cost sheet. Change
the name of the column “Value” to “Cost.” Create a new formula in cell 19 to
calculate cost as Price times Cost % times Quantity. (Be sure to use absolute
or relative references where appropriate.) Fill the formula in cell I9 down to
all items. Save the file as ch2-06_student_name (replacing student_name with
your name).

·
a. Print the completed Pricing worksheet in Value
view, with portrait orientation, scaling to fit to 1 page wide by 1 page tall,
and with your name and date printed in the lower left footer and file name in
the lower right footer.

·
b. Print the completed Cost worksheet in Value
view, with portrait orientation, scaling to fit to 1 page wide by 1 page tall,
and with your name and date printed in the lower left footer and file name in
the lower right footer.

·
c. Print the completed Pricing worksheet in
Formula view, with gridlines and row and column headings, portrait orientation,
scaling to fit to 1 page wide by 1 page tall, and with your name and date
printed in the lower left footer and file name in the lower right footer.

·
d. Print the completed Cost worksheet in Formula
view, with gridlines and row and column headings, portrait orientation, scaling
to fit to 1 page wide by 1 page tall, and with your name and date printed in
the lower left footer and file name in the lower right footer.

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accounting help

$18.00

Description

Three years ago, you founded your own company. You invested $100,000 of your money and received 5 million shares of Series A preferred stock. Since then, your company has been through three additional rounds of financing.

Round Price ($) Number of Shares
Series B 0.50 1,000,000
Series C 2.00 500,000
Series D 4.00 500,000

a. What is the pre–money valuation for the Series D funding round?

b. What is the post–money valuation for the Series D funding round?

c. Assuming that you own only the Series A preferred stock (and that each share of all series of preferred stock is convertible into one share of common stock), what percentage of the firm do you own after the last funding round?

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accounting help

$19.00

Description

Problem 3-16A Contrasting ABC and Conventional Product Costs [LO2, LO3, LO4]
[The following information applies to the questions displayed below.]

For many years, Thomson Company manufactured a single product called LEC 40. Then three years ago, the company automated a portion of its plant and at the same time introduced a second product called LEC 90 that has become increasingly popular. The LEC 90 is a more complex product, requiring 0.60 hour of direct labor time per unit to manufacture and extensive machining in the automated portion of the plant. The LEC 40 requires only 0.20 hours of direct labor time per unit and only a small amount of machining. Manufacturing overhead costs are currently assigned to products on the basis of direct labor-hours.

Despite the growing popularity of the company’s new LEC 90, profits have been declining steadily. Management is beginning to believe that there may be a problem with the company’s costing system. Direct material and direct labor costs per unit are as follows:

LEC 40 LEC 90
Direct materials $ 25.00 $ 44.00
Direct labor (0.20 hours and 0.60 hours @ $ 20.00 per hour)$ 4 $ 12

Management estimates that the company will incur $1,024,000 in manufacturing overhead costs during the current year and 80,000 units of the LEC 40 and 40,000 units of the LEC 90 will be produced and sold

Problem 3-16A Part 2
2.
Management is considering using activity-based costing to assign manufacturing overhead cost to products. The activity-based costing system would have the following four activity cost pools:

Activity Cost Pool Activity Measure Estimated
Overhead Cost
Maintaining parts inventory Number of part types $ 392,000
Processing purchase orders Number of purchase orders $ 100,000
Quality control Number of tests run $ 115,500
Machine-related Machine-hours $ 416,500

$ 1,024,000

Expected Activity

Activity Measure LEC 40 LEC 90 Total
Number of part types 1,000 1,800 2,800
Number of purchase orders 1,400 600 2,000
Number of tests run 1,900 1,950 3,850
Machine-hours 4,000 6,000 10,000

Determine the activity rate for each of the four activity cost pools. (Round your answers to 2 decimal places.)

Activity Cost Pool Activity Rate
Maintaining inventory $ 140 per part type
Processing purchase orders $50 per order
Quality control $ 30 per test
Machine-related $ 41.65 per MH

Problem 3-16A Part 3
3. Using the activity rates you computed in part (2) above, do the following:

a.
Determine the total amount of manufacturing overhead cost that would be assigned to each product using the activity-based costing system. After these totals have been computed, determine the amount of manufacturing overhead cost per unit of each product. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)

Manufacturing overhead per unit of LEC 40 $
Manufacturing overhead per unit of LEC 90 $

b. Compute the unit product cost of each product. (Do not round intermediate calculations. Round your final answers to 2 decimal places)

Unit product cost for LEC 40 $
Unit product cost for LEC 90 $

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accounting help

$19.00

Description

12-3. Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $80 million of 8% bonds, dated January 1, on January 1, 2013. Management intends to have the investment available for sale when circumstances warrant. For bonds of similar risk and maturity the market yield was 10%. The price paid for the bonds was $66 million. Interest is received semiannually on June 30 and December 31. Due to changing market conditions, the fair value of the bonds at December 31, 2013 was $70 million. This problem is a variation of Problem 12-1, modified to categorize the investments as securities available-for-sale.
1. Prepare the journal entry to record Fuzzy Monkey’s investment on January 1, 2013
2. Prepare the journal entry by Fuzzy Monkey to record interest on June 30, 2013 (at the effective rate)
3. Prepare the journal entry by Fuzzy Monkey to record interest on December 31, 2013 (at the effective rate)
4. At what amount will Fuzzy Monkey report its investment in the December 31, 2013 balance sheet? Why? Prepare any entry necessary to achieve this reporting objective
5. How would Fuzzy Monkey’s 2013 statement of cash flows be affected by this investment?

12-4. Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $80 million of 8% bonds, dated January 1, on January 1, 2013. Management intends to have the investment available for sale when circumstances warrant. For bonds of similar risk and maturity the market yield was 10%. The price paid for the bonds was $66 million. Interest is received semiannually on June 30 and December 31. Due to changing market conditions, the fair value of the bonds at December 31, 2013 was $70 million. This problem is a variation of Problem 12-3, modified to cause the investment to be accounted for under the fair value option.
1. Prepare the journal entry to record Fuzzy Monkey’s investment on January 1, 2013
2. Prepare the journal entry by Fuzzy Monkey to record interest on June 30, 2013 (at the effective rate)
3. Prepare the journal entry by Fuzzy Monkey to record interest on December 31, 2013 (at the effective rate)
4. At what amount will Fuzzy Monkey report its investment in the December 31, 2013 balance sheet? Why? Prepare any entry necessary to achieve this reporting objective
5. How would Fuzzy Monkey’s 2013 statement of cash flows be affected by this investment?
6. How would your answers to requirements 1-5 differ if management had the intent and ability to hold investments until maturity?

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accounting help!!!!!!!!!!!!!!!!!!!!!!!!!

$15.00

Description

1.

In your own words, please distinguish between direct and indirect expensesand identify bases for allocating indirect expenses to departments.

2.
There are many opportunities to use C-V-P analysis in business world. How have you used C-V-P analysis in your current position or some prior position that you held? You are not being asked to provide any calculations. instead,you are to share what types of business decisions you are /were trying to make. Be specific enough so that we can understand how you applied C-V-P or can apply C-V-P in the future. If you do not have work experience to draw upon, then answer these questions based on your understanding of the concepts

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accounting help

$8.00

Description

LO5–1 ( Questions 1, 2,3, 4 only Excel only separate sheets) Not in Word!!
1. A manufacturing shop is designed to operate most effi ciently at an output of 550 units per
day. In the past month the plant produced 490 units. What was its capacity utilization rate
last month?
2. A company has a factory that is designed so that it is most effi cient (average unit cost
is minimized) when producing 15,000 units of output each month. However, it has an
absolute maximum output capability of 17,250 units per month, and can produce as little
as 7,000 units per month without corporate headquarters shifting production to another
plant. If the factory produces 10,925 units in October, what is the capacity utilization rate
in October for this factory?
3. Hoosier Manufacturing operates a production shop that is designed to have the lowest
unit production cost at an output rate of 100 units per hour. In the month of July, the company
operated the production line for a total of 175 hours and produced 16,900 units of
output. What was its capacity utilization rate for the month?
LO5–2
4. AlwaysRain Irrigation, Inc., would like to determine capacity requirements for the next
four years. Currently two production lines are in place for making bronze and plastic
sprinklers. Three types of sprinklers are available in both bronze and plastic: 90-degree
STRATEGIC CAPACITY MANAGEMENT chapter 5 125
nozzle sprinklers, 180-degree nozzle sprinklers, and 360-degree nozzle sprinklers. Management
has forecast demand for the next four years as follows:
Yearly Demand
1 (in 000s) 2 (in 000s) 3 (in 000s) 4 (in 000s)
Plastic 90
Plastic 180
Plastic 360
Bronze 90
Bronze 180
Bronze 360
32
15
50
7
3
11
44
16
55
8
4
12
55
17
64
9
5
15
56
18
67
10
6
18
Both production lines can produce all the different types of nozzles. The bronze machines
needed for the bronze sprinklers require two operators and can produce up to 12,000
sprinklers. The plastic injection molding machine needed for the plastic sprinklers requires
four operators and can produce up to 200,000 sprinklers. Three bronze machines
and only one injection molding machine are available. What are the capacity requirements
for the next four years? (Assume that there is no learning.)

Plastic 360
Bronze 180
Bronze 360
32
15
50
11
6
15
44

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accounting help

$26.00

Description

Question 1: (Total 9 Marks)
Indooroopilly Corporation applies overhead based upon machine-hours. Budgeted factory overhead was $266 400 and budgeted machine-hours were 18 500. Actual factory overhead was $287 920 and actual machine-hours were 19 050. Before disposition of under/over-applied overhead, the cost of goods sold was $560 000 and ending inventories were as follows:

Direct materials $60 000
WIP 190 000
Finished goods 250 000
Total $500 000

Required:
a. Determine the budgeted factory overhead rate per machine-hour.
b. Compute the over/under-applied overhead.
c. Prepare the journal entry to dispose of the variance using the write-off to cost of goods sold approach.
d. Prepare the journal entry to dispose of the variance using the proration approach.

Question 2: (Total 10 Marks)

Lewis Auto Company manufactures a part for use in its production of motor cars. When 10 000 items are produced, the costs per unit are:

Direct materials $12
Direct manufacturing labour 60
Variable manufacturing overhead 24
Fixed manufacturing overhead 32
Total $128

Monty Company has offered to sell Lewis Auto Company 10 000 units of the part for $120 per unit. The plant facilities could be used to manufacture another part at a savings of $180 000 if Lewis Auto accepts the supplier’s offer. In addition, $20 per unit of fixed manufacturing overhead on the original part would be eliminated.

Required:
a. What is the relevant per unit cost for the original part?
b. Which alternative is best for Lewis Auto Company? By how much?
Question 3: (Total 7 Marks)

Clinton Company sells two items, product A and product B. The company is considering dropping product B. It is expected that sales of product A will increase by 40% as a result. Dropping product B will allow the company to cancel its monthly equipment rental costing $100 per month. The other existing equipment will be used for additional production of product A. One employee earning $200 per month can be terminated if product B production is dropped. Clinton’s other fixed costs are allocated and will continue regardless of the decision made. A condensed, budgeted monthly income statement with both products follows:

Product A Product B Total
Sales $10 000 $8000 $18 000
Direct materials 2500 2000 4500
Direct labour 2000 1200 3200
Equipment rental 300 2600 2900
Other allocated overhead 1000 2100 3100
Operating profit $4200 $100 $4300

Required:
Prepare an incremental analysis to determine the financial effect of dropping product B. Should the company drop Product B?

Question 4: (Total 10 Marks)

Kirkland Company manufactures a part for use in its production of hats. When 10 000 items are produced, the costs per unit are:

Direct materials $0.60
Direct manufacturing labour 3.00
Variable manufacturing overhead 1.20
Fixed manufacturing overhead 1.60
Total $6.40

Mike Company has offered to sell to Kirkland Company 10 000 units of the part for $6.00 per unit. The plant facilities could be used to manufacture another item at a savings of $9000 if Kirkland accepts the offer. In addition, $1.00 per unit of fixed manufacturing overhead on the original item would be eliminated.

Required:
a. What is the relevant per unit cost for the original part?
b. Which alternative is best for Kirkland Company? By how much?

Question 5: (Total 4 Marks)

Read one recent (year 2000 onwards) online available/accessible journal article on ‘social, economic, and/or environmental sustainability’ and summarise it your own words (300-350 words). You must provide a valid link to the article for the marker to access and review (students responses will be randomly reviewed by the marker using the link provided for accuracy and relevance). If the article could not be accessed by the marker using the link you have provided, no marks will be awarded for this question.

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Accounting help

$11.00

Description

Required: Compute the ROI for each division below to two decimal places.
Which division has the best performance?









Division A Division B Division C
Operating income 245,000 125,000 350,000
Operating assets 1,200,000 775,000 1,500,000












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Accounting help

$11.00

Description

The assignment is attached.

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accounting help!!!!!!!!!!!!!

$55.00

Description

Q1. The Hyatt Company is trying to decide whether it should purchase new equipment and continue to make its subassemblies internally or if production should be discontinued and the subassembly purchased from an outside supplier. Either way production can not continue using the current equipment.

New equipment for producing the subassemblies can be purchased at a cost of $400,000. The equipment would have a five-year useful life (the company uses straight-line depreciation) and a $50,000 salvage value.

Alternatively, the subassemblies could be purchased from an outside supplier. The supplier has offered to provide the subassemblies for $9 each under a five-year contract.

Hyatt Company’s present costs per unit of producing the subassemblies internally (with the old equipment) are given below. The costs are based on a current activity level of 40,000 subassemblies per year:

Direct Materials

$ 3.00

Direct Labour

$ 4.20

Variable Overhead

$ 0.60

Fixed Overhead ($0.80 supervision, $0.90 depreciation,

and $2 general company overhead)

$ 3.70

Total Cost per Unit

$11.50

The new equipment would be more efficient and would reduce direct labour costs and variable overhead costs by 25%. Supervision cost ($30,000 per year) and direct materials cost per unit would not be affected by the new equipment. The company has no other use for the space now being used to produce the subassemblies. The company’s total general company overhead would not be affected by this decision. Assume direct labour is a variable cost.

Required:

Assume that 40,000 subassemblies are needed each year. Prepare an analysis of the two alternatives and make a recommendation to the management of the company of the appropriate course of action. (10 Marks)

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Q2. Benjamin Signal Company produces products R, J, and C from a joint production process. Each product may be sold at the split-off point or be processed further. Joint production costs of $92,000 per year are allocated to the products based on the relative number of units produced. Data for Benjamin’s operations for the current year are as follows:

Product R can be processed beyond the split-off point for an additional cost of $26,000 and can then be sold for $105,000. Product J can be processed beyond the split-off point for an additional cost of $38,000 and can then be sold for $117,000. Product C can be processed beyond the split-off point for an additional cost of $12,000 and can then be sold for $57,000.

Required:

Which products should be processed beyond the split-off point? (10 marks – show your work)

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Q3. Madison Optometry is considering the purchase of a new lens grinder to replace a machine that was purchased several years ago. Selected information on the two machines is given below:

Ignore income taxes and the time value of money in this problem.

Required:

Compute the total advantage or disadvantage of using the new machine instead of the old machine over the next four years. (10 marks)

Be careful with depreciation in this question. You are looking at the decision in terms of cashflows rather than traditional accounting expense recording. Depreciation is designed to recover, over time, the cash expended for an asset purchase.

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Q4. Kramer Company makes 4,000 units per year of a part called an axial tap for use in one of its products. Data concerning the unit production costs of the axial tap follow:

Direct Materials

$35

Direct Labour

$10

Variable Manufacturing Overhead

$ 8

Fixed Manufacturing Overhead

$20

Total Manufacturing Cost per Unit

$73

An outside supplier has offered to sell Kramer Company all of the axial taps it requires. If Kramer Company decided to discontinue making the axial taps, 40% of the above fixed manufacturing overhead costs could be avoided [think carefully as to what cost amount will ultimately have to be consider in the decision. Often a cost avoided means that under one decision option that is the cost to be factored in. Don’t be thrown off by the terminology ‘avoided’]. Assume that direct labour is a variable cost.

Required:

a) Assume Kramer Company has no alternative use for the facilities presently devoted to production of the axial taps. If the outside supplier offers to sell the axial taps for $65 each, should Kramer Company accept the offer? Fully support your answer with appropriate calculations. (8 marks)

b) Assume that Kramer Company could use the facilities presently devoted to production of the axial taps to expand production of another product that would yield an additional contribution margin of $80,000 annually. What is the maximum price Kramer Company should be willing to pay the outside supplier for axial taps? (2 marks)

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Q5. Juanita earns $68,000 annually as a marketing specialist in Mexico City, Mexico. She has applied for admission to the M.B.A program at Dalhousie University. If accepted, she will resign and move to Halifax, Nova Scotia. Juanita has assembled the following data to make the decision:

Juanita’s annual salary $ 68,000

Annual tuition and fees 14,000

Annual book and supply expense 3,000

Monthly living expenses in Mexico City 800

Monthly living expenses in Halifax 1,600

Monthly auto expenses in Mexico City 350

Monthly auto expenses in Halifax 350

Cost of two business suits purchased just prior to resigning 600

Moving expenses 5,500

Required:

a) Calculate the following in the context of Juanita’s decision:

(i) Total sunk costs (if any) (2 marks)

(ii) Total annual differential or incremental costs (if any) (4marks)

(iii) Total annual opportunity costs (if any) (2 Marks)

b) What is your best estimate of the total cost to Juanita of earning an M.B.A. degree if it will take her 12 months to complete the program? (1 mark)

c). Suppose you are Juanita. What specific additional information would you need in order to make a rational decision to pursue and successfully complete the MBA program at Dalhousie? Explain.

Know the meaning of each cost category well

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