Flexible Budget for Assembly Department Cabinaire Inc. is one of the largest manufacturers of office furniture in the United States. In Grand Rapids, Michigan, it assembles filing cabinets in an Assembly Department. Assume the following information for the Assembly Department:
Direct labor per filing cabinet 30 minutes
Supervisor salaries $138,000 per month
Depreciation $17,000 per month
Direct labor rate $21 per hour
Prepare a flexible budget for 13,000, 16,000, and 20,000 filing cabinets for the month ending February 28 in the Assembly Department similar to Exhibit 5. Round your final answers to the whole dollar, if required.

Answer:

Cabinaire Inc.

Assembly Department Budget

Month Ending March 31 (assumed data)

Units of production          10,000             13,000            15,000

Variable cost:

Direct labor                    $ 50,000        $ 65,000        $ 75,000

Total variable cost         $ 50,000        $ 65,000        $ 75,000

Fixed cost:

Supervisor salaries        $ 144,000        $ 144,000       $ 144,000

Depreciation                  $ 33,000         $ 33,000        $ 33,000

Total fixed cost              $ 177,000        $ 177,000        $ 177,000

Total department costs  $ 227,000     $ 242,000     $ 252,000

Explanation:

Direct Labor

10,000 Units = (15÷60) × 20 × 10,000 = $ 50,000

13,000 Units = (15÷60) × 20 × 13,000 = $ 65,000

15,000 Units = (15÷60) × 20 × 15,000 = $ 75,000

The ambitious sprinkler system project was finally over and it was hard to believe that it took only two years. The project manager leaned back in his office chair and admired his emerald green lawn and flower garden that was filling in nicely He was amused by the birds that had gathered to bathe and drink at a persistent puddle just outside his window, a harbinger of the first major repair of his own shoddy workmanship. His review of receipts for the job was less entertaining; between trips to the local home improvement store, consultations with plumbers, city inspectors, and some hired labor, he had sunk a small fortune into his lawn. The manager's:_________
A) Historical records made for interesting reading.
B) Post-project analysis would someday appear in Better Housekeeping.
C) Financial closeout would be forever hidden from his wife.
D) Project plan was a document for the ages.

Madrid Company plans to issue 8% bonds with a par value of $4,000,000. The company sells $3,600,000 of the bonds at par on January 1. The remaining $400,000 sells at par on July 1. The bonds pay interest semiannually on June 30 and December 31. 1. Record the entry for the first interest payment on June 30. 2. Record the entry for the July 1 cash sale of bonds.

The production budget for Manner Company shows units to be produced as follows: July, 650; August, 710; and September, 570. Each unit produced requires one hour of direct labor. The direct labor rate is currently $16 per hour but is predicted to be $16.75 per hour in September. Prepare a direct labor budget for the months July, August, and September.

At January 1, 2008, Ceatric, Inc. has beginning inventory of 2,000 surfboards. Ceatric estimates it will sell 5,000 units during the first quarter of 2008 with a 12% increase in sales each quarter. Ceatric’s policy is to maintain an ending inventory equal to 25% of the next quarter’s sales. Each surfboard costs $100 and is sold for $150. How much is budgeted sales revenue for the third quarter of 2008?

Project managment strategy depends on which of the followings?

a. The number of days that the project manager is allowed to complete the project.
b. The number of employees one person supervises.
c. The number of levels from top to bottom in an organization.
d. The number of departments involved in a project.

Which of the following is not correct?a. If the inflation rate exceeds the nominal interest rate, then the purchasing power of an interest-earning deposit falls over time.b. If there is deflation, then the purchasing power of an interest-earning deposit rises by more than the nominal interest rate over time.c. The higher the rate of inflation, the smaller the increase in the purchasing power of an interest-earning deposit.d. The purchasing power of an interest-earning deposit can increase or decrease over time, but it cannot stay the same.

Lara’s Inc. is currently an unlevered firm with 450,000 shares of stock outstanding, with a market price of $15 a share. The company has earnings before interest and taxes of $314,000. Lara's met with his bankers, Warne Incorporated and agreed to borrow $825,000, at 5 percent. You are an ardent investor and you currently own 20,000 shares of Lara's stock. If you seek to unlevered your position; how many shares of Lara's stock will you continue to own, if you can loan out funds at 5 percent interest? Ignore taxes in your deliberations. Kindly show all workings. (15 marks)

The Fields Company has two manufacturing departments, forming and painting. The company uses the weighted-average method of process costing. At the beginning of the month, the forming department has 26,000 units in inventory, 70% complete as to materials and 30% complete as to conversion costs. The beginning inventory cost of $62,100 consisted of $46,000 of direct material costs and $16,100 of conversion cost.
During the month, the forming department started 320,000 units. At the end of the month, the forming department had 32,000 units in ending inventory, 90% complete as to materials and 40% complete as to conversion. Units completed in the forming department are transferred to the painting department.
Cost information for the forming department is as follows:
Beginning work in process inventory $ 62,100
Direct materials added during the month 1,393,760
Conversion added during the month 800,900
1. Calculate the equivalent units of production for the forming department. Direct Materials Conversion
2. Calculate the costs per equivalent unit of production for the forming department. (Round your answer to 2 decimal places.) EUP EUP Direct Materials Conversion

A legal written promise to pay borrowed money back at a fixed rate of interest over a fixed period of time is a

In Step 4, the EUP from Step 2 and the cost per EUP from Step 3 are used to assign costs to the:______ (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
a. units in beginning inventory
b. units completed and transferred to finished goods
c. units in ending work in process inventory
d. units sold

The following transactions occurred for Lantana Company during its first month of operations and have been recorded in the T-accounts.

a. Received $50,000 cash from owners in exchange for common stock.
b. Purchased land for $20,000, paid $5,000 in cash and signed a 2-year note for the remainder.
c. Bought $900 of supplies on account.
d. Purchased $10,000 of equipment, paying cash.
e. Paid $500 on account for supplies purchased in transaction (c).
Required:

1. Determine the T-account balances.

2. Using the information in the transactions, prepare a classified balance sheet for Lantana Company.

(List long-term assets in alphabetical order)

A new factory manager was hired for a company that was experiencing slow production rates and lower production volumes than demanded by management. Upon​investigation, the manager found that the workers were poorly motivated and not closely supervised. Midway through the​ quarter, an incentive program was​ initiated, and cash bonuses were given when workers hit their production targets. Within a short​ time, production output​ increased, but the bonuses had to be charged to the direct labor​ budget, and the manager was worried about the impact of these costs on operating income. This could produce​ a(n) ________.
A. unfavorable direct labor efficiency variance
B. unfavorable direct materials cost variance
C. unfavorable direct labor cost variance
D. unfavorable direct materials efficiency variance

The following information relates to Wildhorse Co. for the year ended December 31, 2020: net income $1,305 million; unrealized holding loss of $11.2 million related to available-for-sale debt securities during the year; accumulated other comprehensive income of $56.4 million on December 31, 2019. Assuming no other changes in accumulated other comprehensive income.

Determine:
a. Other comprehensive income for 2017
b. Comprehensive income for 2017.
c. Accumulated other comprehensive income at December 31, 2017.

If the aggregate supply curve is flat:_________
a. contractionary fiscal or monetary policy will cause significantly less inflation.
b. expansionary fiscal or monetary policy will add significantly to real GDP will little effect on inflation.
c. expansionary fiscal or monetary policy will add little to real GDP but will increase inflation significantly.
d. contractionary fiscal or monetary policy will reduce inflation with little effect on real GDP.

You are an entrepreneur starting a biotechnology firm. If your research is​ successful, the technology can be sold for $ 30$30 million. If your research is​ unsuccessful, it will be worth nothing. To fund your​ research, you need to raise ​$2.02.0 million. Investors are willing to provide you with ​$2.02.0 million in initial capital in exchange for 50 %50% of the unlevered equity in the firm. a. What is the total market value of the firm without​ leverage? b. Suppose you borrow ​$1.01.0 million. According to​ MM, what fraction of the​ firm's equity will you need to sell to raise the additional ​$1.01.0 million you​ need? c. What is the value of your share of the​ firm's equity in cases ​(a​) and ​(b​)? a. What is the total market value of the firm without​ leverage?

Cawley Company makes three models of tasers. Information on the three products is given below. Sales Variable expenses Contribution margin Fixed expenses Net income Tingler Shocker Stunner $304,000 $496,000 $200,000 149,800 193,300 139.400 154,200 302,700 60,600 119.984 226,816 93,200 $34.216 $75,884 $(32,600) Fixed expenses consist of $296,000 of common costs allocated to the three products based on relative sales, as well as direct fixed expenses unique to each model of $30,000 (Tingler), $80,000 (Shocker), and $34.000 (Stunner). The common costs will be incurred regardless of how many models are produced. The direct fixed expenses would be eliminated if that model is phased out. James Watt, an executive with the company, feels the Stunner line should be discontinued to increase the company's net income. (a) Compute current net income for Cawley Company. Net income $ 77500 (b) Compute net income by product line and in total for Cawley Company if the company discontinues the Stunner product line. (Hint: Allocate the $296,000 common costs to the two remaining product lines based on their relative sales.)

Perine Company has 5,460 pounds of raw materials in its December 31, 2019, ending inventory. Required production for January and February of 2020 are 4,200 and 6,000 units, respectively. 5 pounds of raw materials are needed for each unit, and the estimated cost per pound is $6. Management desires an ending inventory equal to 26% of next month’s materials requirements.


Prepare the direct materials budget for January.

1. A country’s national saving is 20% of its national income and it needs $4 worth of capital for producing $1 worth of goods and services on the average. The economic planners want the country to grow at the rate of 10% per annum and expect that there will be no shortage of labor in the growth process. Is this growth rate consistent with what you have learned from the Harrod Domar Model? If not, how can the planners make a plan to achieve a 10% growth rate?

In terms of public offerings of bonds, what is an indenture? A) a list of the duties of a trust company representing the bondholders' interests B) a memorandum that must be produced to describe the details of a bond offering C) a formal contract that specifies a firm's obligations to the bondholders D) a schedule of the fees charged by an underwriting company

Manley Co. manufactures office furniture. During the most productive month of the year, 5,000 desks were manufactured at a total cost of $87,000. In its slowest month, the company made 2,000 desks at a cost of $49,500. Using the high-low method of cost estimation, total fixed costs are:

1. Westmorland makes ink that it uses in ball point pens. The Company produces two colors of ink. One is blue; the other is red. Ink is made in batches with setup costs being $2,000 per batch. Demand for blue ink is significantly stronger than for red ink. During the most recent week, the company made 2 batches of ink, one blue the other red. It requires 1 hour of labor to make a gallon of ink regardless of color. There were 300 hours of labor used to make the blue ink and the 100 hours of labor used to make the red ink. Under these circumstances:_______.
a. more of the total setup cost should be assigned to the red ink than to the blue ink.
b. more of the total setup cost should be assigned to the blue ink than to the red ink.
c. the total setup cost should be allocated equally between the red and blue ink.
d. one of the answers is correct.
If the Company uses a single company wide overhead rate based on labor hours, the amount of setup cost allocated to the:_______.
a. blue ink is $4,000 and red ink is zero.
b. blue ink is $1,000 and red ink is $3,000
c. blue ink is $3,000 and red ink is $1,000.
d. blue ink is $2,000 and red ink is $2,000.
2. Which of the following is an activity-based cost driver?
A. Number of machine setups
B. Machine hours
C. Material cost
D. All of these answers are correct.
3. What is the principal reason that direct labor hours is no longer an effective base for allocating indirect costs in many modern manufacturing companies?
A. Movement from full-time to part-time workers
B. Automation
C. Workers are not as productive as they were in the past

leutian Company uses the multiple production department factory overhead rate method. The Fabrication Department uses machine hours as an allocation base, and the Assembly Department uses direct labor hours. The Assembly Department's factory overhead rate is

Heitger Company is a job-order costing firm that uses activity-based costing to apply overhead to jobs. Heitger identified three overhead activities and related drivers. Budgeted information or the year is as follows:
Activity Cost Driver Amount of Driver
Materials handling $72,000 Number of moves 3,000
Engineering 165,000 Number of change orders 10,000
Other overhead 280,000 Direct labor hours 50,000
Heitger worked on four jobs in July. Data are as follows:
Job 13-43 Job 13-44 Job 13-45 Job 13-46
Beginning balance $20,300 $19,800 $2,300 $0
Direct materials $6,500 $8,900 $12,700 $9,800
Direct labor cost $18,000 $20,000 $32,000 $2,400
Number of moves 44 52 29 5
Number of change orders 30 40 20 20
Direct labor hours 900 1,000 1,600 120
By July 31, Jobs 13-43 and 13-44 were completed and sold. Jobs 13-45 and 13-46 were still in process.
Required:
1. Calculate the activity rates for each of the three overhead activities.
2. Prepare job-order cost sheets for each job showing all costs through July 31.
3. Calculate the balance in Work in Process on July 31.
4. Calculate the cost of goods sold for July.
5. What if Job 13-46 required no engineering change orders? What is the new cost of Job 13-46? How would the cost of other jobs be affected?

In January 2020, the management of Sheridan Company concludes that it has sufficient cash to permit some short-term investments in debt and stock securities. During the year, the following transactions occurred. Feb. 1 Purchased 500 shares of Muninger common stock for $27,500. Mar. 1 Purchased 700 shares of Tatman common stock for $17,500. Apr. 1 Purchased 40 $1,050, 6% Yoakem bonds for $42,000. Interest is payable semiannually on April 1 and October 1. July 1 Received a cash dividend of $0.50 per share on the Muninger common stock. Aug. 1 Sold 167 shares of Muninger common stock at $65 per share. Sept. 1 Received a $1 per share cash dividend on the Tatman common stock. Oct. 1 Received the semiannual interest on the Yoakem bonds. Oct. 1 Sold the Yoakem bonds for $41,000. At December 31, the fair value of the Muninger common stock was $56 per share. The fair value of the Tatman common stock was $24 per share.At December 31, the fair value of the Muninger common stock was $56 per share. The fair value of the Tatman common stock was $24 per share.
Prepare the adjusting entry at December 31, 2020, to report the investment securities at fair value. All securities are considered to be trading securities. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

The following financial statements and additional information are reported
IKIBAN INC
Comparative Balance Sheets
June 30, 2017 and 2016
2017 2016
Assets
Cash $ 73,100 $ 68,000
Accounts receivable, net 101,000 75,000
Inventory 87,800 122,500
Prepaid expenses 6,800 10,200
Total current assets 268,700 275,700
Equipment 148,000 139,000
Accum. depreciation-Equipment 39,000 21,000
Total assets $377,700 $393,700
Liabilities and Equity
Accounts payable $49,000 $66,000
Wages payable 8,400 19,800
Income taxes payable 5,800 8,600
Total current liabilities 63,200 94,400
Notes payable (long term) 54,000 84,000
Total liabilities 117,200 178,400
Equity
Common stock, $5 par value 268,000 184,000
Retained earnings 7,500 31,300
Total liabilities and equity $377,700 $393,700
A $30,000 note payable is retired at its $30,000 carrying (book) value in exchange for cash. The only changes affecting retained earnings are net income and cash dividends paid. New equipment is acquired for $81,600 cash. Received cash for the sale of equipment that had cost $72,600, yielding a $4,400 gain. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. All purchases and sales of inventory are on credit

Boone Co.'s sales, based on past experience, are 20% cash and 80% credit. Credit sales are typically collected as follows: 40% in the month of sale, 50% in the month after the sale, and 10% in the second month following month of sale. On December 31, the accounts receivable balance is $64,500, of which $21,000 is from November sales. Total sales for January and February are budgeted to be $107,000 and $127,000, respectively.
What are Boone Co.'s budgeted cash receipts for February?
a) $102,130.
b) $120,000.
c) $108,370.
d) $134,880.
e) $116,090.

Grefrath Corporation is developing direct labor standards. A particular product requires 0.71 direct labor-hours per unit. The allowance for breaks and personal needs is 0.04 direct labor-hours per unit. The allowance for cleanup, machine downtime, and rejects is 0.12 direct labor-hours per unit. The standard direct labor-hours per unit should be: Select one: a. 0.71 b. 0.87 c. 0.67 d. 0.55

McHale Enterprises has the following incomplete General Journal entry for the most recent pay date:
Oct 27 Wages and salaries expense 522 $299,384.00
Federal withholding tax payable 220 $50,895.28
Social Security tax payable 221 18,040.82
Medicare tax payable 222 4,219.22
401(k) contributions payable 223
Health Insurance payable 224 8,655.68
Savings bonds payable 227 1,912.00
Wages and salaries payable 226 208,817.61
Oct 27 Wages and salaries payable 226 208,817.61
Cash 101 208,817.61
What is the amount of the 401(k) contributions for the pay date?

During 2019, Lincoln Company hires 20 individuals who are certified to be members of a qualifying targeted group. Each employee works in excess of 600 hours and is paid wages of $16,600 during the year. Determine the amount of Lincoln's work opportunity credit.

On January 1, 2012, Coronado Industries purchased for $762000, equipment having a useful life of ten years and an estimated salvage value of $45000. Coronado has recorded monthly depreciation of the equipment on the straight-line method. On December 31, 2020, the equipment was sold for $162500. As a result of this sale, Coronado should recognize a gain of