Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow:
Direct Labor-Hours per unit Annual Production
Rims 0.80 29,000 units
Posts 0.80 73,000 units
Additional information about the company follows:
Rims require $20 in direct materials per unit, and Posts require $18.
The direct labor wage rate is $16 per hour.
Rims are more complex to manufacture than Posts and they require special equipment.
The ABC system has the following activity cost pools:
Estimated Activity
Activity Cost Pool Activity Measure Estimated
Overhead
Cost Rims Posts Total
Machine setups Number of setups $ 34,310 100 100 200
Special processing Machine-hours $ 113,150 1,000 0 1,000
General factory Direct labor-hours $ 1,218,000 4,000 83,000 87,000
Exercise 4-8 Part 2
2. Determine the unit product cost of each product according to the ABC system.
Unit product cost of Rims
Unit product cost of Posts

Answer and Explanation:

The computation of the unit product cost is shown below;

Particulars                     Rims                    Posts

Machine setups            17155                  17155

                            (34310 ÷ 200 × 100)

Special processing      113150                       0

General factory           56,000           1162000

                          (1218000 ÷ 87000 × 4000)    (14 × 83000)

Total overhead      186305                       1179155

Units                      29000                         73000

Overhead cost per unit 6.42                       16.15

Direct material             20                                18

Direct labor                 12.8                            12.80

                                (16 × .80)

Unit product cost        39.22                         46.95

In a recent benefit-cost analysis of a proposed regulation that generated positive net benefits in the present but negative net benefits in the future, the government used a 5% social discount rate. If it had instead used a 7% social discount rate, the net present value of the policy would have been ______; if it had used a 10% social discount rate, the net present value would have been ______.

Retained earnings, December 31, 2019 $315,450
Decrease in total liabilities during 2019 68,700
Gain on the sale of buildings during 2019 24,150
Dividends declared and paid in 2019 6,750
Proceeds from sale of common stock in 2019 74,100
Net income for the year ended December 31, 2019 33,900

Required:
From the above data, calculate the retained earnings balance as of December 31, 2018. (Enter decreases with a minus sign to indicate a negative financial statement effect.)

On January 1, 20X1, Beard Company purchased a machine for $620,000. The machine is expected to have a 10-year life, with no salvage value, and will be depreciated by the straight-line method. On January 1, 20x1, it leased the machine to Child Company for a three-year period at an annual rental of $128,000 to be paid at the end of each year. Beard could have sold the machine for $817,298 instead of leasing it. Child does not know the implicit rate in the lease, but it has an incremental rate of 9%. Child Company has a December 31 reporting year. Use tables (PV of 1, PVAD of 1, and PVOA of 1 (Use the appropriate factor(s) from the tables provided. Round your intermediate calculations and final answers to the nearest whole dollar amount.)
Required:
1. Why is this an operating lease for Child Company?
2. What are the amounts of the right-of-use asset and lease liab that Child Company should report on its balance sheet at December 31, 20X1?
3. How much lease expense should Child Company recognize in 20X1?

Transactions for Buyer and Seller Shore Co. sold merchandise to Blue Star Co. on account, $111,200, terms FOB shipping point, 2/10, n/30. The cost of the goods sold is $66,720. Shore paid freight of $1,800. Journalize Shore Co.'s entry for the sale, purchase, and payment of amount due, using the net method under a perpetual inventory system. If an amount box does not require an entry, leave it blank. Inventory fill in the blank 002d1202e07bfb8_2 fill in the blank 002d1202e07bfb8_3 Accounts Payable fill in the blank 002d1202e07bfb8_5 fill in the blank 002d1202e07bfb8_6 Accounts Payable fill in the blank 002d1202e07bfb8_8 fill in the blank 002d1202e07bfb8_9 fill in the blank 002d1202e07bfb8_11 fill in the blank 002d1202e07bfb8_12 fill in the blank 002d1202e07bfb8_14 fill in the blank 002d1202e07bfb8_15 fill in the blank 002d1202e07bfb8_17 fill in the blank 002d1202e07bfb8_18 fill in the blank 002d1202e07bfb8_20 fill in the blank 002d1202e07bfb8_21 fill in the blank 002d1202e07bfb8_23 fill in the blank 002d1202e07bfb8_24 Journalize Blue Star Co.'s entry for the sale, purchase, and payment of amount due. If an amount box does not require an entry, leave it blank. fill in the blank 2aa3cd04cfa0046_2 fill in the blank 2aa3cd04cfa0046_3 fill in the blank 2aa3cd04cfa0046_5 fill in the blank 2aa3cd04cfa0046_6 fill in the blank 2aa3cd04cfa0046_8 fill in the blank 2aa3cd04cfa0046_9 fill in the blank 2aa3cd04cfa0046_11 fill in the blank 2aa3cd04cfa0046_12

Fill in the blanks to complete the sentence.
A company expects to sell 500 units during the second quarter and 550 units in the third quarter. Currently, during the second quarter, they have 46 units on hand. If they desire safety stock of 10% of the next quarter's sales, __________units will need to be produced in the second quarter.

discuss the different situations when the communication exists ​

First National Bank charges 13.7 percent compounded monthly on its business loans. First United Bank charges 14 percent compounded semiannually. Calculate the EAR for First National Bank and First United Bank. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) As a potential borrower, which bank would you go to for a new loan

Mechem Corporation produces and sells a single product. In April, the company sold 2,000 units. Its total sales were $151,000, its total variable expenses were $79,700, and its total fixed expenses were $56,600. Required: a. Construct the company's contribution format income statement for April. (Do not round intermediate calculations.) b. Redo the company's contribution format income statement assuming that the company sells 1,900 units. (Do not round intermediate calculations.)

Choi Company manufactures two skin care lotions, Smooth Skin and Silken Skin, from a joint process. The joint costs incurred are $360,000 for a standard production run that generates 170,000 pints of Smooth Skin and 300,000 pints of Silken Skin. Smooth Skin sells for $3.20 per pint, while Silken Skin sells for $5.20 per pint. (Do not round intermediate calculations. Round final answers to nearest whole dollar amounts.) Required: 1. Assuming that both products are sold at the split-off point, how much of the joint cost of each production run is allocated to Smooth Skin using the relative sales value method

i develop my abilities through ​

Sawyer Industries began business at the start of the current year. The company planned to produce 25,000 units, and actual production conformed to expectations. Sales totaled 22,000 units at $30 each. Costs incurred were: Variable manufacturing overhead per unit $ 8 Fixed manufacturing overhead 150,000 Variable selling and administrative cost per unit 2 Fixed selling and administrative cost 100,000 If there were no variances, the company's absorption-costing income would be:

You project revenue to start at $5,000 for the first month and grow by $200 each month thereafter. You project expenses to begin at $7,000 per month and grow by $50 per month. In what month will you break even (revenue equal to expenses)?

Below are cash transactions for Goldman Incorporated, which provides consulting services related to mining of precious metals.
a. Cash used for purchase of office supplies, $1,450.
b. Cash provided from consulting to customers, $41,100.
c. Cash used for purchase of mining equipment, $64,000.
d. Cash provided from long-term borrowing, $51,000.
e. Cash used for payment of employee salaries, $23,100.
f. Cash used for payment of office rent, $11,100.
g. Cash provided from sale of equipment purchased in c. above, $21,600.
h. Cash used to repay a portion of the long-term borrowing in d. above, $35,500.
i. Cash used to pay office utilities, $3,400.
j. Purchase of company vehicle, paying $9,100 cash and borrowing $14,100
Required:
Calculate cash flows from investing activities.

Halbur Company reported the following for its recent year of operation: From the income statement: Depreciation expense $ 1,200 Loss on sale of equipment 2,800 From the comparative balance sheet: Beginning balance, equipment $ 12,900 Ending balance, equipment 8,200 Beginning balance, accumulated depreciation 2,200 Ending balance, accumulated depreciation 2,700 No new equipment was purchased during the year. What was the selling price of the equipment

20) Movie production companies sometimes re-release classic films to theaters to give people who enjoyed them the first time a chance to see the movies again. This is an example of a market penetration strategy.
TRUE FALSE

Suppose consumers buy 50 million packs of cigarettes per month at a price of $5 per pack. If a $1 tax is added to that

price, By what percentage does the price change

The company recorded $5,000 sales with 60% contribution margin ratio in 2019. According to the sales manager, the company can increase the sales volume by 30% this year if the company spends $400 as advertisement expense and decreases the selling price by 10%, while unit variable cost remains the same. If CEO approves the plan, how does it affect the net operating income in 2020

RentAPhone is a new service company that provides European mobile phones to American visitors to Europe. The company currently has 80 phones available at Charles de Gaulle Airport in Paris. There are, on average, 25 customers per day requesting a phone. These requests arrive uniformly throughout the 24 hours the store is open. The corresponding coefficient of variation is 1.
Customers keep their phones on average 72 hours. The standard deviation of this time is 100 hours. Given that RentAPhone currently does not have a competitor in France providing equally good service, customers are willing to wait for the telephones. Yet, during the waiting period, customers are provided a free calling card. Based on prior experience, RentAPhone found that the company incurred a cost of $1 per hour per waiting customer, independent of day or night.
a. What is the average number of telephones the company has in its store?
b. How long does a customer, on average, have to wait for the phone?
c. What are the total monthly (30 days) expenses for telephone cards?
d. Assume RentAPhone could buy additional phones at $1,000 per unit. Is it worth it to buy one additional phone? Why?
e. How would waiting time change if the company decides to limit all rentals to exactly 72 hours? Assume that if such a restriction is imposed, the number of customers requesting a phone would be reduced to 20 customers per day.

2) Consider the taxi market, a constant cost competitive industry. To operate a taxi an entrepreneur needs a license. Show graphically the impact of this regulation on the market supply and the efficiency of this market (as measured by the deadweight loss). A taxi medallion used to sell for up to 1.3 million dollars in NYC. After the entry of UBER the cost dropped these days to approximately 200,000. Discuss the impact of this change on the performance of this market.

On February 1, 2021, the Xilon Corporation issued 47,000 shares of its no-par common stock in exchange for five acres of land located in the city of Monrovia. On the date of the acquisition, Xilon's common stock had a fair value of $16 per share. An office building was constructed on the site by an independent contractor. The building was completed on November 2, 2021, at a cost of $6,800,000. Xilon paid $4,400,000 in cash and the remainder was paid by the city of Monrovia.

Assuming that Xilon prepares its financial statements according to International Financial Reporting Standards, select all the correct alternatives the company has for recording the acquisition of the office building.

a. Same treatment as GAAP.
b. Deduct the amount of the grant in determining the initial cost of the office building.
c. Record the grant as a liability, deferred income, in the balance sheet and recognize it in the income statement systematically over the office building's useful life.

You are an employee of an US firm that produces personal computers in Thailand and then exports them to the US and other countries for sale. The personal computers were originally produced in Thailand to take advantage of relatively low labor costs and a skilled workforce. Other possible locations considered at that time were Malaysia and Hong Kong. The US government decides to impose punitive 100% ad valorem tariffs on imports of computers from Thailand to punish the country for administrative trade barriers that restrict US exports to Thailand. How should your firm respond? What does this tell you about the use of targeted trade barriers?

You are a financial advisor helping a young family create a college fund to provide for their daughter Mary’s education. Mary just turned 5. Her parents expect that she will go to Harvard University, starting school on her 18th birthday. She will only take four years to complete her degree. Currently, tuition and housing costs total $65,000 per year, which are paid at the beginning of each school year. These expenses are expected to increase at the rate of inflation which will run 4% annually for the next 25 years. In each year until Mary enters Harvard University, Mary’s parents will make a deposit into the college fund to exactly provide for all of the costs of her education when she enters college (the first deposit will be made one year from today). Since her parents expect their income to grow at the rate of 2% annually, they would like the amount that they put each year into the fund to increase in nominal terms at the rate of 2% annually. Mary’s parents can earn a rate of 10% annually on their investments and they face a 30% tax rate.
A. What do you expect tuition and housing to cost during Mary’s first year at Harvard University?
B. How much must be in the savings account on Mary’s 18th birthday after the last deposit has been made but before the first payment to Harvard University?
C. What should be the amount of the first payment?
D. Alternatively, Mary’s parents could open a 529 account that allows college savings to grow tax-free. If they saved in this account rather than in a normal investment fund, and still earned the same pre-tax return, how much should be their first deposit?

A manufacturer of prototyping equipment wants to have $3,000,000 available 10 years from now so that a new product line can be initiated. If the company plans to deposit money each year, starting 1 year from now, the equation that represents how much the company is required to deposit each year at 10% per year interest to have the $3,000,000 immediately after the last
deposit is:___________
(a) 3,000,000(A∕F,10%,10)
(b) 3,000,000(A∕F,10%,11)
(c) 3,000,000 + 3,000,000(A∕F,10%,10)
(d) 3,000,000(A∕P,10%,10)

"Insurance is a waste of money. If and when you suffer a financial loss because of an

accident or some other event, you can pay for it from your savings account."

Do you agree or disagree with this statement?

Explain your position.

Expert Manufacturing reported the​ following: Revenue Beginning inventory of direct​ materials, January​ 1, 2015 Purchases of direct materials Ending inventory of direct​ materials, December​ 31, 2015 Direct manufacturing labor Indirect manufacturing costs Beginning inventory of finished​ goods, January​ 1, 2015 Cost of goods manufactured Ending inventory of finished​ goods, December​ 31, 2015 Operating costs How much of the above would be considered period costs for Expert​ Manufacturing?

Analysis of cash flows, analysis of competing hypotheses, consideration of analytical and accounting anomalies, big data and data analytics, consideration of the fraud triangle, use of graphical tools for analysis and communication, internal controls, the control environment and opportunity, interviewing for information and admissions, analysis of nonaccounting and nonfinancial numbers and metrics, financial statement and ratio analysis, consideration of red flags, and analysis of related parties are all examples of:

Which examples demonstrate common Law Enforcement Services workplaces and employers? Check all that apply.

Otto is a self-employed worker who provides legal advice to people accused of crimes.
Peng monitors people who are swimming at a beach.
Candie oversees legal proceedings in a courtroom to make sure laws are followed properly.
Zoraida works for the municipal government investigating crime scene evidence in a laboratory.
Colleen inspects travelers and baggage in an airport.
Asa sits in an office filling out paperwork to document crimes.

Partial balance sheet data for Diesel Additives Company at August 31 are as follows:Finished goods inventory................$ 89,400Supplies.............................................$ 13,800Prepaid insurance..................................9,000Materials inventory..............................26,800Accounts receivable...........................348,200Cash.....................................................167,500Work in process inventory..................61,100Prepare the Current Assets section of Diesel Additives Company's balance sheet at August 31.

Answer the following questions, assuming the year begins January 1. (a) If the amount in Supplies Expense is the January 31 adjusting entry, and $850 of supplies was purchased in January, what was the balance in Supplies on January 1? (b) If the amount in Insurance Expense is the January 31 adjusting entry, and the original insurance premium was for one year, what was the total premium and when was the policy purchased? (c) If $2,500 of salaries was paid in January, what was the balance in Salaries and Wages Payable at December 31, 2019? (d) If $1,600 was received in January for services performed in January, what was the balance in Unearned Service Revenue at December 31, 2019?

Garcia Industries has sales of $176,500 and accounts receivable of $18,500. Assume all sales to be on credit. The industry average DSO is 27 days, based on a 365-day year. If the company changes its credit and collection policy sufficiently to cause its DSO to fall to the industry average, and if it earns 3.0% on any cash freed-up by this change, assuming other things are held constant, by how much would the net income be affected?