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Brief Exercise 21-7 Page 1 of 1
*Brief Exercise 21-7
Production costs chargeable to the Finishing Department in June in Cascio Company are materials $16,000, labor $29,500, overhead $18,000. Equiva lent units of production are materials 20,000 and conversion costs 19,000.
Compute the unit costs for materials and conversion costs. (Round answers to 2 decimal places, e.g. 15.25.)
Unit conversion cost
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Exercise 21-3 (Part Level Submission) Page 1 of 1
*Exercise 21-3 (Part Level Submission) The ledger of Custer Company has the following work in process account.
5/1 Balance 3,590 5/31 Transferred out ?
5/31 Materials 5,160
5/31 Labor 2,740
5/31 Overhead 1,380
5/31 Balance ?
Production records show that there were 400 units in the beginning inventory, 30% complete, 1,400 units started, and 1,500 un its transferred out. The beginn ing work in process had materia ls cost of $2,040 and conversion costs of $1,550. The units in ending inventory were 40% complete. Materia ls are entered at the beginning of the painting process.
*(a)
How many units are in process at May 31?
Units in process at May 31
*(b)
The parts of this question must be completed in order. This part will be available when you complete the part above.
*(c)
The parts of this question must be completed in order. This part will be available when you complete the part above.
*(d)
The parts of this question must be completed in order. This part will be available when you complete the part above.
*(e)
The parts of this question must be completed in order. This part will be available when you complete the part above.
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Exercise 21-6 (Part Level Submission)
*Exercise 21-6 (Part Level Submission) The Cutting Department of Cassel Company has the following production and cost data for July.
Production 1. Transferred out 12,000 units.
2. Started 3,000 units that are 60%
complete as to conversion
costs and 100% complete as
to materials at July 31.
Costs Beginning work in process
Materials
Labor
Manufacturing overhead
$ -0-45,000 16,200
18,300
Page 1 of 1
Materials are entered at the beg inning of the process. Conversion costs are incurred uniformly during the process.
*(a)
Determine the equivalent units of production for (1) materials and (2) conversion costs.
(1) Equivalent units of production for materials
(2) Equivalent units of production for conversion costs
*(b1)
The parts of this question must be completed in order. This part will be available when you complete the part above.
*(b2)
The parts of this question must be completed in order. This part will be available when you complete the part above.
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Do It! Review 22-2 (Part Level Submission) Page 1 of 1
*Do It! Review 22-2 (Part Level Submission) Westerville Company accumulates the following data concerning a mixed cost, using units produced as the activity level.
Units Produced Total Cost
March 10,000 $18,000
April 9,000 16,650
May 10,500 18,580
June 8,800 16,200
July 9,500 17,100
*(a)
Compute the variable and fixed cost elements using the high-low method.
Fixed cost
*(b) The parts of this question must be completed in order. This part will be available when you complete the part above.
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Do It! Review 22-3 (Part Level Submission) Page 1 of 1
*Do It! Review 22-3 (Part Level Submission) Larissa Company has a un it selling price of $250, variable costs per unit of $170, and fixed costs of $140,000.
*(a)
Compute the break-even point in units using the mathematical equation.
The break-even point L----------l units
*(b)
The parts of this question must be completed in order. This part will be available when you complete the part above.
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Do It! Review 22-4 (Part Level Submission) Page 1 of 1
*Do It! Review 22-4 (Part Level Submission) Presto Company makes radios that sell for $30 each. For the coming year, management expects fixed costs to total $220,000 and variable costs to be $18 per unit.
*(a)
Compute the break-even point in dollars using the contribution margin (CM) ratio .
Break-even Point in Dollars $L_ _______ __J
*(b)
The parts of this question must be completed in order. This part will be available when you complete the part above.
*(c) The parts of this question must be completed in order. This part will be available when you complete the part above.
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Exercise 22-12 (Part Level Submission)
*Exercise 22-12 (Part Level Submission) Cannes Company has the following information ava ilable for September 2014.
Unit selling price of v ideo game consoles Unit variable costs
$400 $275
$52,000 600
Total f ixed costs Units sold
*(a) and (b)
Compute the contribution margin per unit.
Contribution Margin $~__ _______ ____~per units
Prepare a CVP income statement that shows both total and per unit amounts.
*(c)
CANNES COMPANY CVP Income Statement
For the Month Ended September 30, 2014
Page 1 of 1
The parts of this question must be completed in order. This part will be available when you complete the part above.
*(d)
The parts of this question must be completed in order. This part will be available when you complete the part above.
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Exercise 22-13 (Part Level Submission) Page 1 of 1
*Exercise 22-13 (Part Level Submission) Naylor Company had $210,000 of net income in 2013 when the selling price per unit was $150, the variable costs per unit were $90, and the fixed costs were $570,000. Management expects per unit data and total fixed costs to remain the same in 2014. The president of Naylor Company is under pressure from stockholders to increase net income by $52,000 in 2014.
*(a)
Compute the number of units sold in 2013. (Round answers to 0 decimal places, e.g. 5,275.)
The Number of Units Sold units
*(b) The parts of this question must be completed in order. This part will be available when you complete the part above.
*(c) The parts of this question must be completed in order. This part will be available when you complete the part above.
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Exercise 22-14 Page 1 of 1
*Exercise 22-14
Cottonwood Company reports the following operating results for the month of August: Sales $400,000 (units 5,000); variable costs $210,000; and fixed costs $90,000. Management is considering the following independent courses of action to increase net income.
1. Increase selling price by 10% with no change in tota l variable costs or units sold. 2. Reduce variable costs to 45% of sales.
Compute the net income to be earned under each alternative. (Round all answers to 0 decimal places, e.g. 5,275.)
1. Net income $.___ _______ ___.
2. Net income $.___ _______ ___.
Which course of action will produce the highest net income?
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Question I
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I I
Question 1 Heidebrecht Design acquired 30% of the outstanding common stock of Quayle Company on January 1, 2014, by paying $836,400 for the 49,200 shares. Quayle declared and paid $0.50 per share cash dividends on March 15, June 15, September 15, and December 15, 2014. Quayle reported net income of $315,700 for the year. At December 31, 2014, the market price of Quayle common stock was $25 per share.
Prepare the journal entries for Heidebrecht Design for 2014 assuming Heidebrecht Design cannot exercise significant influence over Quayle. (Use the cost method and assume that Quayle common stock should be classified as a trading security.) (Record journal entries in the order presented in the problem. 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.)
Date Account Titles and Explanation Debit Credit
Prepare the journal entries for Heidebrecht Design for 2014, assuming Heidebrecht Design can exercise significant influence over Quayle. Use the equity method. (Record journal entries in the order presented in the problem. 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.)
Date Account Titles and Explanation
Debit Credit
11/ I4/20I4 3:48PM
Question 1
2 of2
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Indicate the balance sheet and income statement account balances at December 31, 2014, under each method of accounting.
Stock Investments
Unrealized gain-income
Dividend revenue
Revenue from stock investments
Cost Method
$L-------------~
Equity Method
11114/2014 3:48PM
Question 2
1 of2
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··Question 2 Rodriquez Corporation's comparative balance sheets are presented below.
Cash
Accounts receivable
Investments
Equipment
RODRIQUEZ CORPORATION Comparative Balance Sheets
December 31
2014
$15,430
25,190
19,770
60,190
Accu mu Ia ted depreciation-equipment (13,920)
Total $106,660
Accounts payable $14,440
Bonds payable 10,020
Common stock 50,140
Retained earnings 32,060
Total $106,660
Additional information:
2013
$17,630
22,020
15,800
69,820
(10,080 )
$115,190
$11,140
30,140
44,670
29,240
$115,190
1. Net income was $18,740. Dividends declared and paid were $15,920. 2. Equipment which cost $9,630 and had accumulated depreciation of $1,040 was sold for $3,340. 3. All other changes in noncurrent account balances had a direct effect on cash flows, except the
change in accumulated depreciation.
Prepare a statement of cash flows for 2014 using the indirect method. (Show amounts that decrease cash flow with either a- sign e.g. -15,000, or in parenthesis e.g. (15,000).)
RODRIQUEZ CORPORATION Statement of Cash Flows
For the Year Ended December 31, 2014
Adjustments to reconcile net income to
$L-------------~
$L-------------~
11/14/2014 3:50PM
Question 2 http: //edugen.wileyplus.com/edugen/shared/assignment/test/qprint.uni
$L_ ____________ ~
Compute free cash flow.
Free cash flow $L_ _______ __,
.. , __ ------
2 of2 11/14/2014 3:50PM
Question 3
1 of2
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· Question 3 The comparative condensed balance sheets of Gurley Corporation are presented below.
GURLEY CORPORATION Comparative Condensed Balance Sheets
December31
2015 Assets
Current assets $ 74,870
Property, plant, and equipment (net) 97,900
Intangibles 28,560
Tota l assets $201,330
Liabilities and stockholders' equity
Current liabilities $ 43,210
Long-term liabilities 144,960
Stockholders' equ ity 13, 160
Tota l liabilities and stockholders' equity $201,330
2014
$ 78,700
90,280
40,870
$209,850
$ 46,640
149,920
13,290
$209,850
Prepare a horizontal analysis of the balance sheet data for Gurley Corporation using 2014 as a base. (Enter negative amounts and percentages using either a negative sign preceding the number e.g. -45, -45% or parentheses e.g. (45), (45%). Round percentages to 1 decimal place, e.g. 12.3%.)
2015
Assets
Current Assets $74,870
Property, Plant & 97,900
Equipment (net)
Intangibles 28,560
Total assets $201,330
Liabilities and Stockholders' Equity
GURLEY CORPORATION Condensed Balance Sheets
December 31
2014 Increase
(Decrease)
$78,700
90,280
40,870
po9l850
$
$
Percentage Change from 2014
%
%
0/o
0/o
11114/2014 3:51 PM
Question 3
2 of 2
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Current Liabilities $43,210 $46,640 $
Long-term Liabilities 144,960 149,920
Stockholders' Equity 13,160 13,290
Total liabilities and $
stockholders' equity po1l33o $209£850
Prepare a vertical analysis of the balance sheet data for Gurley Corporation in columnar form for 2015. (Round percentages to 1 decimal place, e.g. 12.3%.)
Assets
Current Assets
Property, Plant, and Equipment
Intangibles
Total assets
GURLEY CORPORATION Condensed Balance Sheet
December 31, 2015
Amount
$74,870
97,900
28£560
$201£330
Liabilities and Stockholders' Equity
Current Liabilities $43,210
Long-term Liabilities 144,960
Stockholders' Equity 13£160
Total liabilities and stockholders' equity $201£330
Percent
%
%
0/o
I 0/o
%
%
1%
I Ofo
0/o
%
0/o
%
11114/2014 3:51PM
Question 4
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, Question 4 The comparative condensed income statements of Emley Corporation are shown below.
EMLEY CORPORATION Comparative Condensed Income Statements
For the Years Ended December 31
Net sales
Cost of goods sold
Gross profit
Operating expenses
Net income
2015
$596,800
486,990
109,810
56,930
$ 52,880
2014
$501,520
420,610
80,910
45,550
$ 35,360
Prepare a horizontal analysis of the income statement data for Emley Corporation using 2014 as a base. (Round percentages to 1 decimal place, e.g. 12.3%.)
2015
Net sales $596,800
Cost of goods sold 486,990
Gross profit 109,810
Operating expenses 56,930
Net income $52,880
EMLEY CORPORATION Condensed Income Statements
For the Years Ended December 31
Increase or (Decrease) During 2015
2014 Amount Percentage
$501,520 $L_ ____________ ~
420,610
80,910
45,550
$35,360 $
Prepare a vertical analysis of the income statement data for Emley Corporation in columnar form for both years . (Round percentages to 1 decimal place, e.g. 12.3%.)
Amount
Net sales $596,800
EMLEY CORPORATION Condensed Income Statements
For the Years Ended December 31
2015
Percent Amount
L---------------~o/0 $501,520
2014
Percent
L_ ______________ __,%
11/14/2014 3:54PM
Question 4 http://edugen.wileyplus.com/edugen/shared/assignment/test/qprint.uni
Cost of goods sold 486,990 % 420,610 %
Gross profit 109,810 % 80,910 %
Operating expenses 56,930 % 45,550 %
Net income $52,880 % $ 35,360 %
11/14/2014 3:54PM 2 of2
For all questions, assume no other transactions or activities have taken place during the period except as noted.
Prepare and present calculations for partial credits for questions with calculations and presentations.
Answer all questions: show calculations for partial credit- 5 Questions
Question 1:
Lucky Strike Inc. acquired 10% of the 443,900 shares of common stock of Camel Inc. at a total cost of $11 per share on January 1,
2014. On September 1, Camel declared and paid a $116,800 dividend. Camel reported net income of $587,700 for the year ended
December 31, 2014.
Required: Journalize each transaction for 2014 for Lucky Strike Inc.
Question 2:
Concrete Inc. obtained significant influence over Sands Inc. by purchasing 30% of Sands' 101,300 outstanding shares of common
stock at a cost of $17 per share on January 1, 2014. On July 1, Sands declared and paid a cash dividend of $197,000. Sands
reported net income of $295,800 for the year ended December 31, 2014.
Required: Journalize each transaction for 2014 for Concrete Inc.
Question 3:
Mosaic Company's comparative balance sheets are presented below.
Cash Accounts receivable
Land Buildings
Mosaic Company Comparative Balance Sheets
December 31
$14,530 21,010 19,680
69,730
Accumulated depreciation-buildings (15,130)
Total $109,820
Accounts payable $12,750
Common stock 74,990
Retained earnings 22,080
Total $109,820
Additional information:
$10,830
23,630 25,610 69,730
(10,510)
$119,290
$31,230 68,020 20,040
$119,290
1. Net income was $22,124. Dividends declared and paid were $20,084 . 2. All other changes in noncurrent account balances had a direct effect on cash flows, except the change in accumulated
depreciation. The land was sold for $4,700.
Required: Prepare a statement of cash flows for the year ended December 31, 2014 using the indirect method.
Question 4:
Financial information for Mark III Company is presented below.
December 31 Current assets $123,830 $103,320
Plant assets (net) 394,800 329,480
Current liabilities 86,170 74,920
Long-term liabilities 132,400 88,310
Common stock, $1 par 166,260 112,500
Retained earnings 133,800 157,070
Required: Prepare a schedule showing a horizontal analysis for 2015 using 2014 as the base year.
Question 5:
Operating data for Ivy Craft Company are presented below.
2015 2014 Net sales $745,870 $596,850
Cost of goods sold 462,940 385,690
Selling expenses 119,460 73,520
Administrative expenses 57,780 49,450
Income tax expense 34,210 23,390
Net income 71,480 64,800
Required: Prepare a schedule showing a vertical analysis for 2015 and 2014.