The Sanding Department of Quik Furniture Company has the following production and manufacturing cost data for March 2020, the first month of operation. Production: 6,240 units finished and transferred out; 3,000 units started that are 100% complete as to materials and 20% complete as to conversion costs. Manufacturing costs: Materials $36,960; labor $21,400; overhead $30,242. Prepare a production cost report. (Round unit costs to 2 decimal places, e.g. 2.25 and other answers to 0 decimal places, e.g. 125.)

Answer:

Cost of goods transferred out  $71,061.012

Value of closing inventory = $17,540.98

Explanation:

Cost  per equivalent unit = Cost /total equivalent unit

Material

Equivalent unit = (100%×6,240) +( 100%× 3,000) = 9240

Cost per equivalent unit = $36,960/9,240 units= 4

Labour

Equivalent unit = (100%×6,240) + ( 25%× 3,000)= 6990  units

Cost per equivalent unit = ( 21,400 + 30,242)/6990  = 7.387982833

Cost of goods transferred out=  (6,240× 4) + (7.38×6,240)=71,061.012

Value of closing inventory = (3,000× 4) + (7.38× 25%*3000)= 17,540.98

Cost of goods transferred out  $71,061.012

Value of closing inventory = $17,540.98

Read the following scenario to answer the questions in below.
As the book-keeper for your company you are required to create quarterly financial statements (Income Statement, Statement of Owner's Equity Balance Sheet and Statement of Cash Flows) in order to report on the financial activities of the company for the quarter (three months).
It is now March 29th, and in preparation for creating the 1st quarter's financial statements (as of 3/31), you have called a meeting with the Dept. Managers for Accounts Receivable and Accounts Payable to confirm deadlines that have to be met for recording March-related transactions. As the meeting starts the owner walks in - she sits quietly as you explain the deadlines, but as soon as you have finished she says "Well, for this quarter, if we have not paid March invoices by March 31, there is no need to record them in March. We can record/expense those invoices when we pay them in April or May."
Questions:
1. Do you agree with the owner, or, do you feel that an adjusting entry is necessary in the situation described? If so - which type of adjusting entry is needed?
2. Discuss the impact (understated or overstated) on the accounts affected if the adjustment is not made and explain how the adjustment affects the appropriate financial statements

Assume that on September 1, Office Depot had an inventory that included a variety of calculators. The company uses a perpetual inventory system. During September, these transactions occurred:
Sept. 6 Purchased calculators from Crane Co. at a total cost of $1,610, terms n/30.
9 Paid freight of $40 on calculators purchased from Crane Co.
10 Returned calculators to Crane Co. for $52 credit because they did not meet
specifications.
12 Sold calculators costing $580 for $760 to Fryer Book Store, terms n/30.
14 Granted credit of $45 to Fryer Book Store for the return of one calculator that
was not ordered. The calculator cost $32.
20 Sold calculators costing $650 for $800 to Heasley Card Shop, terms n/30.
Instructions:
Journalize the September transactions.

Suppose Cook Plus manufactures cast iron skillets. One model is a​ 10-inch skillet that sells for $ 22. Cook Plus projects sales of 650 ​10-inch skillets per month. The production costs are $ 11 per skillet for direct​ materials, $ 4 per skillet for direct​ labor, and $ 6 per skillet for manufacturing overhead. Cook Plus has 75 ​10-inch skillets in inventory at the beginning of July but wants to have an ending inventory equal to 40​% of the next​ month's sales. Selling and administrative expenses for this product line are $ 1,200 per month. Cook Plus has budgeted cost of goods sold of $ 13,650 for July.
Required:
1. How many 10-inch skillets should Chef Plus produce in July?

what form of business ownership would you recommend to Alison and why?

Business Case-Alison's coffee shop

The following information relates to the manufacturing operations of the Abbra Publishing Company for the year:

Beginning Ending
Raw materials inventory $563,000 $626,000

The raw materials used in manufacturing during the year totaled $1,098,000. Raw materials purchased during the year amount to:

a. $955,000.
b. $892,000.
c. $1,565,000.
d. $408,000.
e. $1,081,000.

The financial statements for Castile Products, Inc., are given below:

Castile Products, Inc.
Balance Sheet
December 31
Assets
Current assets:
Cash $ 20,000
Accounts receivable, net 230,000
Merchandise inventory 350,000
Prepaid expenses 7,000
Total current assets 607,000
Property and equipment, net 890,000
Total assets $ 1,497,000
Liabilities and Stockholders' Equity
Liabilities:
Current liabilities $ 210,000
Bonds payable, 9% 330,000
Total liabilities 540,000
Stockholders’ equity:
Common stock, $10 par value $ 110,000
Retained earnings 847,000
Total stockholders’ equity 957,000
Total liabilities and equity $ 1,497,000
Castile Products, Inc.
Income Statement
For the Year Ended December 31
Sales $ 2,120,000
Cost of goods sold 1,200,000
Gross margin 920,000
Selling and administrative expenses 650,000
Net operating income 270,000
Interest expense 29,700
Net income before taxes 240,300
Income taxes (30%) 72,090
Net income $ 168,210
Account balances at the beginning of the year were: accounts receivable, $190,000; and inventory, $290,000. All sales were on account.

Assume that Castile Products, Inc., paid dividends of $2.95 per share during the year. Also assume that the company’s common stock had a market price of $72 at the end of the year and there was no change in the number of outstanding shares of common stock during the year.

Required:
Compute financial ratios as follows:
1.
Earnings per share. (Round your answer to 2 decimal places.)




2.
Dividend payout ratio. (Round your intermediate calculations to 2 decimal places. Round your final percentage answer to 1 decimal place (i.e., 0.1234 should be considered as 12.3%).)



3.
Dividend yield ratio. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be considered as 12.3%).)




4.
Price-earnings ratio. (Round your intermediate calculations to 2 decimal places and final answer to 1 decimal place.)




5.
Book value per share. (Round your answer to 2 decimal places.)

Ying pays $300 of investment interest related to her investments. The interest is not directly related to any particular investment owned by Ying. She owns $40,000 worth of municipal bonds that pay her $2,400 in interest and $20,000 worth of bonds that pay her taxable interest of $2,000. Ying allocates the investment fees based on the fair market value of the securities. The allocation between the nondeductible portion of the fee and the deductible portion is:

Truck drivers for a hauling company, while loading a desk, found a $100 bill that had fallen out of the desk. They agreed to get it exchanged for small bills and divide the proceeds. En route to the bank, one of them changed his mind and refused to proceed with the scheme, whereupon the other pulled a knife and demanded the bill. A police officer intervened. What crimes have been committed?

Caden is 62 years old and has a traditional IRA with a balance of $220,000. Of that amount, $66,000 is from nondeductible contributions made while Caden was working. Earnings on the nondeductible contributions equal $20,600. If Caden withdraws $15,000 from his IRA this year, $_____ will NOT be subject to taxation.

Denton Company manufactures and sells a single product. Cost data for the product are given below:

Variable costs per unit:
Direct materials $5
Direct labor 11
Variable manufacturing overhead 3
Variable selling and administrative 1
Total variable cost per unit $20
Fixed costs per month:
Fixed manufacturing overhead $120,000
Fixed selling and administrative 169,000
Total fixed cost per month $289,000

The product sells for $52 per unit. Production and sales data for July and August, the first two months of operations, are as follows:

Units Produced Units Sold
July 27,000 23,000
August 27,000 31,000

The companyâs Accounting Department has prepared absorption costing income statements for July and August as presented below:

July August
Sales $1,196,000 $1,612,000
Cost of goods sold 483,000 651,000
Gross margin 713,000 961,000
Selling and administrative expenses 241,000 265,000
Net operating income $472,000 $696,000

Required:
1. Determine the unit product cost under absorption costing and variable costing.
2. Prepare contribution format variable costing income statements for July and August.
3. Reconcile the variable costing and absorption costing net operating income.

When friends of Brian Richardson went to the carnival, they always wanted to take him with them because Richardson had an uncanny ability to win almost every arcade game he played. Usually by the end of the evening his friends were also winning because Richardson did not mind sharing his secrets. His friends urged him to write a book. After several attempts, Richardson created The Secrets of Amusement Park Games-Revealed. In the 85-page book, Richardson reduces the art of playing arcade games to a science. According to him, the trick is to realize each game is not a game of chance. Richardson's mini-book is available at Amazon for $5.95.

Refer to the scenario Since, with the use of Richardson's book, most people dan win arcade games and carry home as many stuffed animals as their arms can hold, what would carnival operators hope for?

a. a slow diffusion of the book
b. the book's purchase and promotion
c. a rapid diffusion of the book
d. intensive distribution and promotion

SnowParadise operates a Rocky Mountain ski resort. The company is planning its lift ticket pricing for the coming ski season. Investors would like to earn a 10 % return on investment on the​ company's $ 270,000 of assets. The company primarily incurs fixed costs to groom the runs and operate the lifts. SnowParadise projects fixed costs to be $ 31,000 for the ski season. The resort serves about 725,000 skiers and snowboarders each season. Variable costs are about $ 7 per guest.​ Currently, the resort has such a favorable reputation among skiers and snowboarders that it has some control over the lift ticket prices. Would SnowParadise emphasize target pricing or cost-plus pricing? Why?

National Corporation needs to set a target price for its newly designed product M14–M16. The following data relate to this new product.
Per Unit Total
Direct materials $23
Direct labor $45
Variable manufacturing overhead $12
Fixed manufacturing overhead $1,296,000
Variable selling and administrative expenses $ 10
Fixed selling and administrative expenses $ 1,134,000
These costs are based on a budgeted volume of 80,000 units produced and sold each year. National uses cost-plus pricing methods to set its target selling price. The markup percentage on total unit cost is 35%.
Required:
a) Compute the total variable cost per unit, total fixed cost per unit, and total cost per unit for M14–M16.
b) Compute the desired ROI per unit for M14–M16. (Round answer to 2 decimal places, e.g. 10.50.)

Dalrymple Bay Coal Terminal, a coal-handling facility and export terminal in Queensland, Australia, has issued triple-A rated bonds for $680 million in Australian dollars. The bonds will be used to refinance existing bank debt caused by the acquisition of eases from the Queensland government in 2002. The Commonwealth Bank of Australia acted as investment bankers to the transaction.
Required:
1. This means the Commonwealth Bank of Australia __________.
Group of answer choices:
A. Engaged in factoring the sale
B. Bought the bonds from Dalrymple and sold them to the public
C. Operates in the secondary securities market
D. Was responsible for co-insurance of the bond premium
E. Would be responsible for paying the dividend if Dalrymple were unable to

Assume you had determined that John Firestone, vice president of Pierce Chemicals, was a prospect for your paper and metal containers. You call Mr. Firestone to see if he can see you this week. When his secretary answers the telephone, you say, "May I speak to Mr. Firestone, please?" and she says, "What is it you wish to talk to him about?"
a) How would you answer her question?
b) What would you say if you were told, "I’m sorry, but Mr. Firestone is too busy to talk with you"?

Property Rights and Corruption When looking at a country as a market or investment, the international business must consider the country's legal system. In that assessment, the firm needs to understand the differences between private actions, which refer to theft, piracy, blackmail, and the like from individuals or groups, and public actions, which are those actions taken by politicians and government bureaucrats. Either kind of action would pose a serious threat to the firm's investment or operations. Before the firm can seek legal remedies, it must clearly understand the options open to it.
In a legal sense, property refers to a resource over which an individual or a business holds a legal title. It is a resource that it owns. Countries differ in the extent to which their legal systems define and protect property rights, even those countries that are still nominally communist states. Property rights can be violated, sometimes by governments and sometimes by individuals or groups.
1. Pleae select that whether below items are the Private Action or Public Action?
a. legal mechanisms
b. theft or blackmail
c. organized crime/ protection money
d. bribery
e. weak legal system
f. corruption
Options:
O Private Action
O Public Action

You manage a department of five employees. You have identified that Ashley has a high need for achievement, Mary has a high need for power, and Keith has a high need for affiliation. Sarah scored high on the need for power and low on the need for affiliation. Doug scored low on both need for power and need for affiliation.
1. Which of these five employees is most likely to be suitable for a new assignment that involves a high degree of personal responsibility and feedback?
A) Mary
B) Ashley
C) Keith
D) Sarah
E) Doug
2. Which of these five employees is most suitable for handling your responsibilities when you are on a vacation?
A) Ashley
B) Mary
C) Keith
D) Sarah
E) Doug

Andre Candess manages an office supply store. One product in the store is computer paper. Andre knows that 10,000 boxes will be sold this year at a constant rate throughout the year. There are 250 working days per year and the lead-time is 3 days. The cost of placing an order is $30, while the holding cost is $15 per box per year. If he orders in batches of 500 boxes at a time, what is his annual holding cost

Byrd Company produces one product, a putter called GO-Putter. Byrd uses a standard cost system and determines that it should take one hour of direct labor to produce one GO-Putter. The normal production capacity for this putter is 145,000 units per year. The total budgeted overhead at normal capacity is $1,160,000 comprised of $435,000 of variable costs and $725,000 of fixed costs. Byrd applies overhead on the basis of direct labor hours.

During the current year, Byrd produced 79,900 putters, worked 94,400 direct labor hours, and incurred variable overhead costs of $157,882 and fixed overhead costs of $539,908.

a) Compute the predetermined variable overhead rate and the predetermined fixed overhead rate.

b) Compute the applied overhead for Byrd for the year.

c) Compute the total overhead variance.

Thermal Rising, Inc., makes paragliders for sale through specialty sporting goods stores. The company has a standard paraglider model, but also makes custom-designed paragliders. Management has designed an activity-based costing system with the following activity cost pools and activity rates:

Activity Cost Pool Activity Rate
Supporting direct labor $26 per direct labor-hour
Order processing $284 per order
Custom designing processing $186 per custom design
Customer service $379 per customer
Management would like an analysis of the profitability of a particular customer, Big Sky Outfitters, which has ordered the following products over the last 12 months:

Standard Model Design Custom Model
Number of gliders 20 3
Number of orders 1 3
Number of custom designs 0 3
Direct labor-hours per glider 26.35 28.00
Selling price per glider $1,850 $2,400
Direct materials cost per glider $564 634
The company's direct labor rate is $19.50 per hour.

Using the company's activity-based costing system, compute the customer margin of Big Sky Outfitters.

Based on the following Information and the post-closing trial Balance that follow, prepare a balance sheet in report form at December 31 of the current year:
The Merchandise inventory is stated at cost by the LIFO method.
The product warrant payable is a current liability.
Vacation pay payable:
Current liability $7,140
Long-term liability 3,360
The unfunded pension liability is a long-term liability.
Notes Payable:
Current liability $70,000
Long-term liability 630,000
Kornett Company
POST-CLOSING TRIAL BALANCE
December 31, 2016
Petty cash 4,500
Cash 243,960
Notes Receivable 100,000
Accounts Receivable 470,000
Allowance for Doubtful Accounts 16,000
Merchandise Inventory 320,000
Interest Receivable 1,875
Prepaid Insurance 45,640
Office Supplies 13,400
Land 654,925
Buildings 900,000
Accumulated Depreciation-Buildings 36,000
Office Equipment 246,000
Accumulated Depreciation- 44,000
Office Equipment
Store Equipment 112,000
Accumulated Depreciation-Store 5,000
Equipment
Mineral Rights 546,000
Accumulated Depletion 30,000
Patents 42,000
Social Security Tax payable 25,470
Medicare Tax payable 4,710
Employees federal Income Tax payable 40,000
State Unemployment Tax Payable 270
Federal Unemployment Tax payable 40
Salaries Payable 157,000
Accounts Payable 131,600
Interest Payable 28,000
Product Warrenty Payable 76,000
Vacation Pay Payable 10,500
Unfunded Pension Liability 50,700
Notes Payable 700,000
J. Kornett, Capital 2,345,010
3,700,300 3,700,300

Match each form of unemployment with an example. Note that every item may not have a match.

a. cyclical unemployment
b. structural unemployment
c. frictional unemployment


1. An unemployed paper mill worker. The local paper mill shut down due to lack of demand for paper products in a digital age.

2. An unemployed banker during a recession. The banker would be hired back once the economy began growing normally again.

3. A retiree. After a successful career in real estate, she now lives off her retirement savings and Social Security.

4. An unemployed stockbroker who is willingly taking some time off before looking for a new job.

5. An unemployed cashier. A small clothing store shut down due to its customers buying clothes from a new big-box retailer.

Suppose that JVC is trying to decide how to price a new stereo system composed of a receiver, CD player, and speakers. The company's economists have estimated that two different groups will purchase these products: students and club owners. The economists analysis suggests that the total market for its brand of stereos consists of 10,000 students and 50,000 club owners. In addition, it is estimated that the maximum amount each group will pay for each stereo component is as follows:
Group Receiver CD Player Speakers
Students $250 $150 $100
Club owners $200 $75 $250
Required:
a) Suppose that JVC markets the receiver, CD player, and speakers are sold separately and together. What prices should JVC charge to maximize revenues?

Mills Corporation acquired as a long-term investment $225 million of 8% bonds, dated July 1, on July 1, 2021. Company management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 6% for bonds of similar risk and maturity. Mills paid $250.0 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2021, was $240.0 million.
Required:
1. Prepare the journal entry to record Mills'investment in the bonds on July 1, 2021 and interest on December 31, 2021, at the effective market) rate.
2. At what amount will Mills report its investment in the December 31, 2021, balance sheet?

A recent start-up company, which we will call Dronegistics, has developed an innovative unmanned aerial vehicle, or drone. The company plans to sell its drones to companies who would use them to make commercial deliveries within congested urban areas. Dronegistics has identified several markets in Asia as having high commercial potential. Japan and Singapore are perceived to have the strongest market potential currently, but mainland China, Thailand, and Malaysia are perceived to have strong and growing potential over time, even if their potential may not be as strong currently. Despite expectations that several other firms will introduce competitive products in the near future, which will have an impact on the attractiveness for later entrants, Dronegistics lacks the experience and resources to enter more than one Asian market at a time. The decision-making challenge facing Dronegistics incorporates all of the following location clocks associated with timing decisions EXCEPT the:

__a. firm clock.

__b. location clock.

__c. incentives clock.

__d. competitive clock.

What would happen to the price of a certain commodity if the demand was always greater than the supply? There would be surplus of supply at any given price. Consumers would be willing to pay more for an abundant commodity and sellers would charge more, resulting in an upward spiral of the prices for the commodity. There would be a surplus of supply until the supply equals the demand. Consumers would be willing to pay more for a scarce commodity and sellers would charge more, resulting in an upward spiral of the prices for the commodity. There would be a shortage of supply until the supply equals the demand. Consumers would be willing to pay more for a scarce commodity and sellers would charge more, resulting in an upward spiral of the prices for the commodity. There would be a shortage of supply at any given price. Consumers would be willing to pay

Mixed Costs and Cost Formula Callie's Gym is a complete fitness center. Owner Callie Ducain employs various fitness trainers who are expected to staff the front desk and to teach fitness classes. While on the front desk, trainers answer the phone, handle walk-ins and show them around the gym, answer member questions about the weight machines, and do light cleaning (wiping down the equipment, vacuuming the floor). The trainers also teach fitness classes (e.g., pilates, spinning, body pump) according to their own interest and training level. The cost of the fitness trainers is $600 per month and $20 per class taught. Last month, 100 classes were taught. Required: 1. Develop a cost equation for total cost of labor. Total labor cost = $ + $ per class taught 2. What was total variable labor cost last month? $ 3. What was total labor cost last month? $ 4. What was the unit cost of labor (per class) for last month? $ per class 5. What if Callie increased the number of classes offered by 50 percent? a. What would be the total labor cost? $ b. The unit labor cost? $ c. Explain why the unit labor cost d

Lazar Corporation is evaluating a proposal to invest in a machine costing $89,000. The machine has an estimated useful life of ten years, and an estimated salvage value of $14,000. The machine will increase the company's net income by approximately $9,600 per year. All revenue and expenses other than depreciation will be received and paid in cash.
Required:
1. The expected rate of return on average investment of the machine is ____________.
a. 10.0%
b. 48.0%
c. 17.0%
d. 18.6%

You live in a town with 300 adults and 200 children, and you are thinking about putting on a play to entertain your neighbors and make some money. A play has a fixed cost of $2,000, but selling an extra ticket has zero marginal cost. Here are the demand schedules for your two types of customers:
Price (Dollars) Adults (Tickets) Children (Tickets)
20 0 0
18 25 0
16 50 0
14 100 0
12 150 0
10 200 0
8 300 25
6 300 50
4 300 100
2 300 150
0 300 200
To maximize profit, you would charge _____ (number) for an adult's ticket and _____ (number) for a child?s ticket. Total profit in this case would be _____ (number).
The city council passes a law prohibiting you from charging different prices to different customers.
Now you set a price of _____(number) for all tickets, resulting in _____(number) in profit.
Indicate whether each of the following groups of people is better off, worse off, or the same because of the law prohibiting price discrimination.
Groups of People Better Off Worse Off Unchanged
Adults
Children
You, the Producer
Suppose the fixed cost of the play were $2,600 rather than $2,000.
Complete the following sentences indicating how this would change your answers to the previous parts.
In the presence of price discrimination, the adult price of a ticket would _____ (increase, decrease, remain the same), and the child price would _____ (increase, decrease, remain the same). Total profit would _____ (rise, fall) to (number).
If price discrimination were banned and the monopolist continued to produce the play no matter what the profit, the price of a ticket would _____ (increase, decrease, remain the same), and total profit would _____ (rise, fall) to _____ (number).

Which of the following is an example of​ cannibalization?
A. A toothpaste manufacturer adds a new line of toothpaste​ (that contains baking​ soda) to its product line.
B. A basketball manufacturer adds basketball hoops to its product line.
C. A convenience store begins selling preminuspaid cell phones.
D. A grocery store begins selling Tminusshirts featuring the local​ university's mascot.