Xavier Company Produces A Single Product. Variable Manufacturing Overhead Is Applied To Products On

Xavier Company produces a single product. Variable manufacturing overhead is applied to products on the basis of direct labor-hours. The standard costs for one unit of product are as follows: Direct material: 6 ounces at $0.50 per ounce . . . . . . . . . . . . . . . . . . $3 Direct labor: 1.8 hours at $10 per hour . . . . . . . . . . . . . . . . . . . . . . . 18 Variable manufacturing overhead: 1.8 hours at $5 per hour . . . . . . . 9 Total standard variable cost per unit . . . . . . . . . . . . . . . . . . . . . . . . . $30 During June, 2,000 units were produced. The costs associated with June’s operations were as follows: Material purchased: 18,000 ounces at $0.60 per ounce . . . . . . . $10,800 Material used in production: 14,000 ounces . . . . . . . . . . . . . . . . . — Direct labor: 4,000 hours at $9.75 per hour . . . . . . . . . . . . . . . . . $39,000 Variable manufacturing overhead costs incurred . . . . . . . . . . . . . $20,800 Required: Compute the direct materials, direct labor, and variable manufacturing overhead variances.

Chesterfield County Had The Following Transactions. A Budget Is Passed For All Ongoing Activities.

Chesterfield County had the following transactions. A budget is passed for all ongoing activities. Revenue is anticipated to be $978,250 with approved spending of $615,000 and operating transfers out of $292,000. A contract is signed with a construction company to build a new central office building for the government at a cost of $8,200,000 . A budget for this project has previously been recorded. Bonds are sold for $8,200,000 (face value) to finance construction of the new office building. The new building is completed. An invoice for $8,200,000 is received and paid. Previously unrestricted cash of $800,000 is set aside to begin paying the bonds issued in (c). A portion of the bonds comes due and $800,000 is paid. Of this total, $120,000 represents interest. The interest had not been previously accrued. Citizens’ property tax levies are assessed. Total billing for this tax is $805,000. On this date, the assessment is a legally enforceable claim according to the laws of this state. The money to be received is designated for the current period and 90percent is assumed to be collectible in this period with receipt of an additional 6 percent during subsequent periods but in time to be available to pay current period claims. The remainder is expected to be uncollectible. Cash of $198,000 is received from a toll road. This money is restricted for highway maintenance. The county received investments valued at $336,000 as a donation from a grateful citizen. Income from these investments must be used to beautify local parks. Prepare the entries first for fund financial statements and then for government-wide financial statements.

Assume That The City Of Coyote Has Already Produced Its Financial Statements For December

Assume that the City of Coyote has already produced its financial statements for December 31, 2017, and the year then ended. The city’s general fund was only for education and parks. Its capital projects funds worked with each of these functions at times during the current year. The city also had established an enterprise fund to account for its art museum. The government-wide financial statements indicated the following figures: Education reported net expenses of $766,000. Parks reported net expenses of $163,000. Art museum reported net revenues of $58,250. General government revenues for the year were $1,069,750 with an overall increase in the city’s net position of $199,000. The fund financial statements indicated the following for the entire year: The general fund reported a $35,750 increase in its fund balance. The capital projects fund reported a $45,750 increase in its fund balance. The enterprise fund reported a $72,750 increase in its net position. The CPA firm of Abernethy and Chapman has been asked to review several transactions that occurred during 2017 and indicate how to correct any erroneous reporting and the impact of each error. View each of the following situations as independent. During 2017, the City of Coyote contracted to build a bus stop for schoolchildren costing $19,200 as a special assessments project for which it collected $19,200 from affected citizens. The government had no obligation in connection with this project. Both a $19,200 revenue and a $19,200 expenditure were recorded in the capital projects fund. In preparing government-wide financial statements, an asset and a general revenue were recorded for $19,200. In the general information above, the capital projects fund reported a $45,750 increase in its fund balance for this year. What was the correct change in the capital projects fund’s balance during 2017? In the general information, a $199,000 overall increase in the city’s net position was found on the government-wide financial statements. What was the correct overall change in the city’s net position on the government-wide financial statements?

On January 1, 2017, The City Of Hastings Created A Solid Waste Landfill That

On January 1, 2017, the City of Hastings created a solid waste landfill that it expects to reach capacity gradually over the next 20 years. If the landfill were to be closed at the current time, closure costs would be approximately $1.38 million plus an additional $890,000 for postclosure work. Of these totals, the city must pay $59,000 on December 31 of each year for preliminary closure work. At the end of 2017, the landfill reached 3 percent of capacity. At the end of 2018, the landfill reached 15 percent of capacity. Also at the end of 2018, a reassessment is made; total closure costs are determined to be $1.58 million rather than $1.38 million. Assuming that the landfill is viewed as an enterprise fund, what journal entries are made in 2017 and 2018 on the government-wide financial statements? Assuming that the landfill is reported within the general fund, what journal entries are made in 2017 and 2018 on the government-wide financial statements? Assuming that the landfill is viewed as an enterprise fund, what journal entries are made in 2017 and 2018 on fund financial statements? Assuming that the landfill is reported within the general fund, what journal entries are made in 2017 and 2018 on fund financial statements?

On January 1, 2017, A Rich Citizen Of The Town Of Ristoni Donates A

On January 1, 2017, a rich citizen of the Town of Ristoni donates a painting valued at $334,000 to be displayed to the public in a government building. Although this painting meets the three criteria to qualify as an artwork, town officials choose to record it as an asset. There are no eligibility requirements for the gift. The asset is judged to be inexhaustible so that depreciation will not be reported. For the year ended December 31, 2017, what will be reported on government-wide financial statements in connection with this gift? How does the answer to requirement (a) change if the government decides to depreciate this asset over a 10-year period using straight-line depreciation? How does the answer to requirement (a) change if the government decides not to capitalize the asset?

The County Of Maxnell Decides To Create A Sanitation Department And Offer Its Services

The County of Maxnell decides to create a sanitation department and offer its services to the public for a fee. As a result, county officials plan to account for this activity within the enterprise funds. Prepare journal entries for this operation for the following 2017 transactions as well as necessary adjusting entries at the end of the year. Assume the information is being gathered to prepare fund financial statements. Only entries for the sanitation department are required here: January 1 Received unrestricted funds of $170,000 from the general fund as permanent financing. Febrauary 1 Borrowed an additional $132,000 from a local bank at a 12 percent annual interest rate. March 1 Ordered a truck at an expected cost of $152,000. April 1 Received the truck and made full payment. The actual cost amounted to $158,000. The truck has a 10-year life and no salvage value. Straight-line depreciation is to be used. May 1 Received a $27,500 cash grant from the state to help supplement the pay of the sanitation workers. The money must be used for that purpose. June 1 Rented a garage for the truck at a cost of $2,750 per month and paid 12 months of rent in advance. July 1 Charged citizens $16,800 for services. Of this amount, $14,400 has been collected. August 1 Made a $13,000 cash payment on the 12 percent note of February 1. This payment covers both interest and principal. September 1 Paid salaries of $25,000 using the grant received on May 1. October 1 Paid truck maintenance costs of $1,550. November 1 Paid additional salaries of $12,500, first using the rest of the grant money received May 1. December 31 Sent invoices totaling $23,600 to customers for services over the past six months. Collected $4,100 cash immediately. December 31 A new landfill was opened this year. It is 12 percent filled as of the end of the year. The estimated current cost for the eventual closure of this facility is $3.6 million although no payments will be made for approximately 9 years. Make journal entries for this operation for the above 2017 transactions as well as necessary adjusting entries at the end of the year. (If no entry is required for a transaction/event, select “No journal entry required” in the first account field. Enter your answers in whole dollars and not in millions.)

The Following Information Pertains To The City Of Williamson For 2017, Its First Year

The following information pertains to the City of Williamson for 2017, its first year of legal existence. For convenience, assume that all transactions are for the general fund, which has three separate functions: general government, public safety, and health and sanitation. Receipts: Property taxes $478,000 Franchise taxes 47,000 Charges for general government services 6,900 Charges for public safety services 5,400 Charges for health and sanitation services 43,900 Issued long-term note payable 328,000 Receivables at end of year: Property taxes (90% estimated to be collectible) 107,600 Payments: Salary: General government 68,900 Public safety 43,600 Health and sanitation 27,900 Rent: General government 11,600 Public safety 19,400 Health and sanitation 3,900 Maintenance: General government 35,000 Public safety 7,800 Health and sanitation 11,100 Insurance: General government 7,800 Public safety ($4,100 still prepaid at end of year) 16,400 Health and sanitation 20,100 Interest on debt 26,240 Principal payment on debt 6,560 Storage shed 202,000 Equipment 126,000 Supplies (20% still held) (public safety) 23,300 Investments 106,000 Ordered but not received: Equipment 17,000 Due in one month at end of year: Salaries: General government 5,100 Public safety 7,500 Health and sanitation 9,000 Compensated absences (such as vacations and sick days) are legally owed to general government workers at year-end total $22,900. These amounts will not be taken by the employees until so late in 2018 that the payment is not viewed as requiring 2017 current financial resources. The city received a piece of art this year as a donation. It is valued at $16,000. It will be used for general government purposes. There are no eligibility requirements. The city chose not to capitalize this property. The general government uses the storage shed that was acquired this year. It is being depreciated over 10 years using the straight-line method with no salvage value. The city uses the equipment for health and sanitation and depreciates it using the straight-line method over five years with no salvage value. The investments are valued at $127,600 at the end of the year. For the equipment that has been ordered but not yet received, the City Council (the highest decision-making body in the government) has voted to honor the commitment when the equipment is received. a-1. Prepare a statement of activities for governmental activities for December 31, 2017. a-2. Prepare a statement of net position for governmental activities for December 31, 2017. b-1. Prepare a statement of revenues, expenditures, and other changes in fund balances for the general fund as of December 31, 2017. Assume that the city applies the consumption method. b-2. Prepare a balance sheet for the general fund as of December 31, 2017. Assume that the city applies the consumption method.

Mark’s Consulting Services Experienced The Following Transactions For Year 1, Its First Year Of

Mark’s Consulting Services experienced the following transactions for Year 1, its first year of operations, and Year 2. Assume that all transactions involve the receipt or payment of cash. Transactions for Year 1 Acquired $55,000 by issuing common stock. Received $130,000 for providing services to customers. Borrowed $22,000 cash from creditors. Paid expenses amounting to $59,000. Purchased land for $40,000 cash. Transactions for Year 2 Beginning account balances for Year 2 are: Cash $ 108,000 Land 40,000 Notes payable 22,000 Common stock 55,000 Retained earnings 71,000 Acquired an additional $20,000 from the issue of common stock. Received $131,000 for providing services in Year 2. Paid $17,000 to reduce notes payable. Paid expenses amounting to $66,000. Paid a $11,500 dividend to the stockholders. Determined that the market value of the land is $50,000. Required a. Record the effects of each accounting event under the appropriate headings for each year. Record the amounts of revenue, expense, and dividends in the Retained Earnings column. Provide appropriate titles for these accounts in the last column of the table. b-1. Prepare an income statement for each year accounting period. b-2. Prepare a statement of changes in stockholders’ equity for each year accounting period. b-3. Prepare a year-end balance sheet for each year accounting period. b-4. Prepare a statement of cash flows for each year accounting period. c. Determine the amount of cash in the retained earnings account at the end of Year 1 and Year 2. e. Determine the balance in the Retained Earnings account immediately after Event 2 in Year 1 and in Year 2 are recorded.

Lead! Inc. Offers Executive Coaching Services To Small Business Owners. Lead!’s Operating Profits Average

Lead! Inc. offers executive coaching services to small business owners. Lead!’s operating profits average 16 percent of revenues and its marketing and administrative costs average 25 percent of the cost of services sold. Required: Lead! Inc. expects revenues to be $218,000 for April. Prepare an income statement for April for Lead! Inc. assuming its expectations are met. Lead! Inc. offers executive coaching services to small business owners. Lead!’s operating profits average 16 percent of revenues and its marketing and administrative costs average 25 percent of the cost of services sold. Required: Lead! Inc. expects revenues to be $218,000 for April. Prepare an income statement for April for Lead! Inc. assuming its expectations are met. Income Statement Sales Revenue: Cost of Services Sold: Gross Margin: Marketing and Administrative Costs: Operating Profit:

¨Avocado, Inc. Purchased A $100,000 Machine And Deducted $70,000 Of Depreciation Before Selling It

¨Avocado, Inc. purchased a $100,000 machine and deducted $70,000 of depreciation before selling it for $80,000 (after holding it for more than 1 year). How much gain does Avocado recognize? How is the gain classified?

F.D. Roosevelt Purchased An Apartment Building For $300,000. Accelerated Depreciation Was Taken In The

F.D. Roosevelt purchased an apartment building for $300,000. Accelerated depreciation was taken in the amount of $260,000 before the building was sold for $250,000. Straight-line depreciation would have been $245,000. How much gain does Roosevelt recognize? How is Roosevelt’s gain classified? Would the answer change if F.D. Roosevelt is a corporation?

Scenario: Michael’s Welding Shop Is Located In State A. It Orders Machine Parts Online

Scenario: Michael’s Welding Shop is located in State A. It orders machine parts online and has had a long-term business relationship with Widgets Express, an industrial supply company, based in State B. Although Widgets Express does brisk e-commerce business with residents of State A, it does not pay income taxes there. In an effort to ensure that businesses in-state and out-of-state pay their fair share of income taxes, State A demands that Widgets Express pay income taxes based on the amount of e-commerce business it does in State A. Questions: Is State A’s income tax on e-commerce constitutional or unconstitutional? Explain why or why not. Do you agree or disagree with the argument that state courts are predisposed to make rulings in favor of their own citizens? Explain your opinion.

1. ____ A) Internal Users Of Financial Information For ABC Manufacturing Company Would Include

1. ____ a) Internal users of financial information for ABC Manufacturing Company would include all of the following EXCEPT: Owners Investment Advisors employed by a consulting firm Employees Management ____ b) Accounting systems include all the following elements, except: Framework Rules Order Controls 2. _____ a. T or F: Assume you own more than one business. The financial records are prepared separately for each business. The records are also separate and distinct from your personal finances. This methodology relies on the going concern concept. (If false, identify error and correct.) ______b. T or F The accrual basis method of accounting requires revenue to be recognized when performance obligations are satisfied. (If false, identify error and correct.) _____3. The following data relate to Lexi Company for the year ended December 31, 2018. The company uses the accrual basis method of accounting. (Show work for partial credit) Sales on credit $725,000 Cost of inventory sold on credit 505,000 Collections from customers 715,000 Purchase of inventory on credit 325,000 Payment for purchases 250,000 Selling expenses (accrual basis) 55,000 Payment for selling expenses 50,000 Compute net income using accrual basis and select response below: a. $880,000 b. $415,000 c. $165,000 d. $725,000 Compute net income using cash basis and insert here: ______________

Jones Industries Manufactures IPhone Case Covers. Allison CastroAllison Castro​, The​ CEO, Is Trying To

Jones Industries manufactures iPhone case covers. Allison CastroAllison Castro​, the​ CEO, is trying to decide whether to adopt a lean thinking model. She expects that adopting lean production would save $67,000 in warehousing expenses and $47,000 in spoilage costs. Adopting lean production will require several​ one-time up-front​ expenditures: $14,500 for an employee training​ program, $36,000 to streamline the​ plant’s production​ process, and $8,250 to identify suppliers that will guarantee zero defects and​ on-time delivery. 1. What are the total costs of adopting lean​ production? 2. What are the total benefits of adopting lean​ production? 3. Should the company adopt lean​ production? Why or why​ not?

Fernblatt Inc. Recognizes Revenue In The Period In Which It Records An Asset For

Fernblatt Inc. recognizes revenue in the period in which it records an asset for the related account receivable, rather than in the period in which the account receivable is collected in cash. Fernblatt’s accounting approach is an example of: Matching. Cash basis accounting. Accrual accounting. Periodicity.

We Can Classify Costs On The Basis Of The Amount Of Services Provided. This

We can classify costs on the basis of the amount of services provided. This is referred to activity, utilization, or volume. As many of us have seen, in healthcare, there is a great deal of uncertainty with the volume. We have seen many hospitals lose their volume of inpatients to free-standing facilities. It is important for a manager to have some idea of the potential range of volume for the organization and department. Identify the types of cost classifications. Be sure to discuss the characteristics of each one. Provide at least two examples of each one that you might find in a healthcare setting. Lastly, discuss how these classifications are related to cost behavior. In your opinion, which type is easier to manage?

Locate The Following Cited Items And Give A Brief Description Of The Topic Or

Locate the following cited items and give a brief description of the topic or opinion in the item: b. § 1.6694-1(b). c. Rev. Rul. 86-55, 1986-1 C.B. 373. d. PLR 8022027.

Why Is GAAP So Important For External Financial Reporting But Not For Internal Management

Why is GAAP so important for external financial reporting but not for internal management reporting?

Sawaya Co., Ltd., Of Japan Is A Manufacturing Company Whose Total Factory Overhead

Sawaya Co., Ltd., of Japan is a manufacturing company whose total factory overhead costs fluctuate considerably from year to year according to increases and decreases in the number of direct labor-hours worked in the factory. Total factory overhead costs at high and low levels of activity for recent years are given below: Level of Activity Low High   Direct labor-hours 45,300 60,400   Total factory overhead costs $ 233,740 $ 260,920 The factory overhead costs above consist of indirect materials, rent, and maintenance. The company has analyzed these costs at the 45,300-hour level of activity as follows:       Indirect materials (variable) $ 63,420   Rent (fixed) 122,000   Maintenance (mixed) 48,320   Total factory overhead costs $ 233,740 To have data available for planning, the company wants to break down the maintenance cost into its variable and fixed cost elements. Required: 1. Estimate how much of the $260,920 factory overhead cost at the high level of activity consists of maintenance cost. (Hint: To do this, it may be helpful to first determine how much of the $260,920 consists of indirect materials and rent. Think about the behavior of variable and fixed costs!) (Do not round intermediate calculations.)          2. Using the high-low method, estimate a cost formula for maintenance. (Do not round intermediate calculations.)                   3. What total factory overhead costs would you expect the company to incur at an operating level of 49,830 direct labor-hours? (Do not round intermediate calculations.)      

Scan House, A Large Campground In Michigan, Adjusts Its Accounts Monthly. Most Guests Of

Scan House, a large campground in Michigan, adjusts its accounts monthly. Most guests of the campground pay at the time they check out, and the amounts collected are credited to Camper Revenue. The following information is available as a source for preparing the adjusting entries at December 31: Scan House invests some of its excess cash in certificates of deposit (CDs) with its local bank. Accrued interest revenue on its CDs at December 31 is $1,400. None of the interest has yet been received. A six-month bank loan in the amount of $120,000 had been obtained on September 1. Interest is to be computed at an annual rate of 8 percent and is payable when the loan becomes due. Depreciation on buildings owned by the campground is based on a 20-year life. The original cost of the buildings was $800,000. The Accumulated Depreciation: Buildings account has a credit balance of $300,000 at December 31, prior to the adjusting entry process. The straight-line method of depreciation is used. Management signed an agreement to let 4H Troop 840 of Scranton, Pennsylvania, use the campground in June of next year. The agreement specifies that the 4H Troop will pay a daily rate of $25 per campsite, with a clause providing a minimum total charge of $1,900. Salaries earned by campground employees that have not yet been paid amount to $1,700. As of December 31, Scan House has earned $2,000 of revenue from current campers who will not be billed until they check out. Several lakefront campsites are currently being leased on a long-term basis by a group of senior citizens. Six months’ rent of $54,000 was collected in advance and credited to Unearned Camper Revenue on October 1 of the current year. A bus to carry campers to and from town and the airport had been rented the first week of December at a daily rate of $100. At December 31, no rental payment has been made, although the campground has had use of the bus for 25 days. Unrecorded Income Taxes Expense accrued in December amounts to $10,000. This amount will not be paid until January 15. Required: (prepare using an excel spreadsheet, include proper heading with your name, course name and number, and problem number – Chapter 2 Excel HW (1 of 2) For each of the above numbered paragraphs, prepare the necessary adjusting entry (including an explanation). If no adjusting entry is required, explain why. Indicate the effects that each of the adjustments in part a will have on the following sixtotal amounts in the campground’s financial statements for the month of December. Organize your answer in tabular form, using the column headings shown below. Use the letters I for increase, D for decrease, and NE for no effect. Adjusting entry 1 is provided as an example. 3. What is the amount of interest expense recognized for the entire current year on the $120,000 bank loan obtained September 1? 4. Compute the book value of the campground’s buildings to be reported in the current year’s December 31 balance sheet. (Refer to paragraph 3.)

One Of The Main Functions Of Budgets Is Evaluating Performance. In This Evaluation Role,

One of the main functions of budgets is evaluating performance. In this evaluation role, budgets serve as a useful standard of measurement. However, if budget performance is overemphasized when evaluating managers’ performance, the managers might take undesirable actions such as padding the budget. Required: Identify four undesirable actions (other than padding the budget) that managers might take as a result of an overemphasis on budgets as a performance measure. Briefly explain how each action you have identified affects the long-term performance.

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