Cybercrime, Fraud, and Ethics & Information Technology_2024

Published: 11 months ago

Cybercrime, Fraud, and Ethics & Information Technology_2024

11. Search Solved Questions ACC203 – Foxwood Company is a metal and woodcutting manufacturer ACC203 A.

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ACC203 – Foxwood Company is a metal and woodcutting manufacturer

ACC203 A ssignment

Question 2

Foxwood Company is a metal and woodcutting manufacturer, selling products to the home construction market. Consider the following data for 2018:

Required:

1)  Prepare a schedule of cost of goods manufactured.

2)  Prepare a schedule of costs of goods sold.

3)  Prepare an income statement.

Question 3.

Karlene Industries produces plastic ice cube trays in two processes: heating and stamping. All materials are added at the beginning of the Heating Department process. Karlene uses the weighted averaged method to compute equivalent units.

On 1 November 2016, the Heating Department had in process 1,000 trays that were 70% complete. During November, it started into production 12,000 trays. On 30 November, 2016, 2000 trays that were 60% complete were in process.

The following cost information for the Heating Department was also available.

Work in process, 1 November:

Costs incurred during November:

Direct material                                   $3,000

Conversion costs:

Direct labour                         $2,300

Manufacturing overhead $4,050 $6,350

Total production costs incurred during November $9,350

Required:

Analysis of physical flow of units

Calculation of equivalent units

Calculation of units cost

Analysis of total costs

Question 4.

Martinez Building Products Company is one of the largest manufacturers and marketers of unique, custom made residential garage doors in the U.S. It also is a major supplier of industrial and commercial doors, grills, and counter shutters for the new construction, repair, and remodel markets.

Martinez uses a job cost system and applies overhead to production on the basis of direct labour cost. In computing a predetermined overhead rate for the year 2018, the company estimated manufacturing overhead to be $24 million and direct labour costs to be $20 million. In addition, it developed the following information.

Actual costs incurred during 2018

Direct materials used                                     $30,000,000

Direct labour cost incurred                                  21,000,000

Insurance for factory                                         500,000

Indirect labour                                            7,500,000

Factory maintenance                                       1,000,000

Rent on factory building                                    11,000,000

Depreciation on factory equipment                            2,000,000

Required

Why is Martinez Building Products Company using a job costing system?

On what basis does Martinez allocate its manufacturing overhead? Please calculate the predetermined overhead rate for 2018.

Calculate the amount of the under- or overapplied overhead for 2018.

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12. From the following Receipts and Payment Account of Sonic Club and from the given additional...

From the following Receipts and Payment Account of Sonic Club and from the given additional information; prepare Income and Expenditure Account for the year ending 31st December, 2010 and the Balance Sheet as on that date:

Additional Informations:

1. The club had received Rs.20, 000 for Subscription in 2005 for 2006.


2. Salaries had been paid only for 11 months.


3. Stocks of Sports Equipment on 31st December,2011 was Rs. 3,00,000 and on 31st December, 2012 Rs.6,50,000. (6)

13. Lee Company produces a single product. At the end of last year, the company had 30,000 units in...

Lee Company produces a single product. At the end of last year, the company had 30,000 units in its ending inventory. Lee's variable production costs are $10 per unit and its fixed manufacturing overhead costs are $5 per unit every year. The company's net operating income for the year was $12,000 higher under variable costing than under absorption costing. Given these facts, the number of units of product in inventory at the beginning of the year must have been:

14. Way Cool produces two different models of air conditioners. The company produces the mechanical s...

Way Cool produces two different models of air conditioners. The company produces the mechanical systems in their components department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow. Process Activity Overhead Cost Driver Quantity Components Changeover 536,250 Number of batches 750 8,560 Machining 395.472 Machine hours Setups 75.800 Number of setups 40 $1,007, 522 189,810 elding hours 3,700 Finishing Welding Number of 333.775 Inspecting 845 nspections Rework 59.400 Rework orders 220 582,985 171,020 Purchase orders Support Purchasing 503 Providing space 31,000 Number of units 6,600 Providing utilities 95,060 Number of units 6.600 297,080 Additional production information concerning its two product lines follows. Model 145 Model 212 4,400 Units produced 2.200 Welding hours 800 2,900 Batches 375 375 Number of inspections 475 370 5,310 Machine hours 3.250 Setups 20 20 Rework orders 130 90 Purchase orders 335 168

15. 1. In the case of a nonmonetary grant, which of the following accounting treatments is prescribed by

1. In the case of a nonmonetary grant, which of the following accounting treatments is prescribed by IAS 20? (a) Record the asset at replacement cost and the grant at a nominal value. (b) Record the grant at a value estimated by management. (c) Record both the grant and the asset at fair value of the nonmonetary asset. (d) Record only the asset at fair value; do not recognize the fair value of the grant. 2. In the case of grants related to an asset, which of these accounting treatments (balance sheet presentation) is prescribed by IAS 20? (a) Record the grant at a nominal value in the first year and write it off in the subsequent year. (b) Either set up the grant as deferred income or deduct it in arriving at the carrying amount of the asset. (c) Record the grant at fair value in the first year and take it to income in the subsequent year. (d) Take it to the income statement and disclose it as an extraordinary gain.

16. The financial statements at the end of Wolverine Realty's first month of operations are as follows:

Missing amounts from financial statements

The financial statements at the end of Wolverine Realty's first month of operations are as follows:

Instructions

By analyzing the interrelationships among the four financial statements, determine the proper amounts for (a) through (q).

17. Why must a company estimate the amount of factory overhead assigned to individual jobs or job lots?

1. Why must a company estimate the amount of factory overhead assigned to individual jobs or job lots?

2. The chapter used a percent of labor cost to assign factory overhead to jobs. Identify another factor (or base) a company might reasonably use to assign overhead costs.

3. What information is recorded on a job cost sheet? How do management and employees use job cost sheets?

18. A number of graphs displaying cost behavior patterns are shown

A number of graphs displaying cost behavior patterns are shown below. The vertical axis on each graph represents total cost, and the horizontal axis represents level of activity (volume).

Required:

1. For each of the following situations, identify the graph below that illustrates the cost behavior pattern involved. Any graph may be used more than once.

a. Cost of raw materials used.

b. Electricity bill—a flat fixed charge, plus a variable cost after a certain number of kilowatt-hours are used.

c. City water bill, which is computed as follows:



d. Depreciation of equipment, where the amount is computed by the straight-line method. When the depreciation rate was established, it was anticipated that the obsolescence factor would be greater than the wear and tear factor.

e. Rent on a factory building donated by the city, where the agreement calls for a fixed fee payment unless 200,000 labor-hours or more are worked, in which case no rent need be paid.

f Salaries of maintenance workers, where one maintenance worker is needed for every 1,000 hours of machine-hours or less (that is, 0 to 1,000 hours requires one maintenance worker, 1.001 to 2,000 hours requires two maintenance workers, etc.).

g. Cost of raw materials, where the cost starts at $7.50 per unit and then decreases by 5 cents per unit for each of the first 100 units purchased, after which it remains constant at $2.50 per unit.

h. Rent on a factory building donated by the county, where the agreement calls for rent of $100,000 less $1 for each direct labor-hour worked in excess of 200,000 hours, but a minimum rental payment of $20,000 must be paid.

i. Use of a machine under a lease, where a minimum charge of $1,000 is paid for up to 400 hours of machine time. After 400 hours of machine time, an additional charge of $2 per hour is paid up to a maximum charge of $2,000 per period.



How would a knowledge of cost behavior patterns such as those above be of help to a manager in analyzing the cost structure of his or hercompany?

19. Consider the following information for three stocks, Stocks X, Y

Consider the following information for three stocks, Stocks X, Y, and Z. The returns on the three stocks are positively correlated, but they are not perfectly correlated. (That is, each of the correlation coefficients is between 0 and 1.)



Fund Q has one-third of its funds invested in each of the three stocks. The risk-free rate is 5.5%, and the market is in equilibrium. (That is, required returns equal expected returns.)

a. What is the market risk premium (rM – rRF)?

b. What is the beta of Fund Q?

c. What is the expected return of Fund Q?

d. Would you expect the standard deviation of Fund Q to be less than 15%, equal to 15%, or greater than 15%?Explain.

20. 1. What asset and liability accounts might the AAA use to record its transactions? 2. List at...

1. What asset and liability accounts might the AAA use to record its transactions?2. List at least two transactions that the AAA might record.

21. Multiple-choice questions: a. Which of the following ratios can

Multiple-choice questions:

a. Which of the following ratios can be used as a guide to a firm’s ability to carry debt from an income perspective?

1. Debt ratio

2. Debt to tangible net worth

3. Debt/equity

4. Times interest earned

5. Current ratio

b. There is disagreement on all but which of the following items as to whether it should be considered a liability in the debt ratio?

1. Short-term liabilities

2. Reserve accounts

3. Deferred taxes

4. Noncontrolling income (loss)

5. Preferred stock

c. A firm may have substantial liabilities that are not disclosed on the face of the balance sheet from all but which of the following?

1. Leases

2. Pension plans

3. Joint ventures

4. Contingencies

5. Bonds payable

d. In computing the debt ratio, which of the following is subtracted in the denominator?

1. Copyrights

2. Trademarks

3. Patents

4. Marketable securities

5. None of the above

e. All but which of these ratios are considered to be debt ratios?

1. Times interest earned

2. Debt ratio

3. Debt/equity

4. Fixed charge ratio

5. Current ratio

f. Which of the following statements is false?

1. The debt to tangible net worth ratio is more conservative than the debt ratio.

2. The debt to tangible net worth ratio is more conservative than the debt/equity ratio.

3. Times interest earned indicates an income statement view of debt.

4. The debt/equity ratio indicates an income statement view of debt.

5. The debt ratio indicates a balance sheet view of debt.

g. Sneider Company has long-term debt of $500,000, while Abbott Company has long-term debt of $50,000. Which of the following statements best represents an analysis of the long-term debt position of these two firms?

1. Sneider Company’s times interest earned should be lower than Abbott Company’s.

2. Abbott Company’s times interest earned should be lower than Sneider Company’s.

3. Abbott Company has a better long-term borrowing ability than does Sneider Company.

4. Sneider Company has a better long-term borrowing ability than does Abbott Company.

5. None of the above

h. A times interest earned ratio of 0.20 to 1 means

1. That the firm will default on its interest payment.

2. That net income is less than the interest expense (including capitalized interest).

3. That cash flow exceeds the net income.

4. That the firm should reduce its debt.

5. None of the above

i. In computing debt to tangible net worth, which of the following is not subtracted in the denominator?

1. Patents

2. Goodwill

3. Land

4. Bonds payable

5. Both 3 and 4

j. The ratio fixed charge coverage

1. Is a cash flow indication of debt-paying ability.

2. Is an income statement indication of debt-paying ability.

3. Is a balance sheet indication of debt-paying ability.

4. Will usually be higher than the times interest earned ratio.

5. None of the above

k. Under the Employee Retirement Income Security Act, a company can be liable for its pension plan up to

1. 30% of its net worth.

2. 30% of pension liabilities.

3. 30% of liabilities.

4. 40% of its net worth.

5. None of the above

l. Which of the following statements is correct?

1. Capitalized interest should be included with interest expense when computing times interest earned.

2. A ratio that indicates a firm’s long-term debt-paying ability from the balance sheet view is the times interest earned.

3. Some of the items on the income statement that are excluded in order to compute times interest earned are interest expense, income taxes, and interest income.

4. Usually, the highest times interest coverage in the most recent five-year period is used as the primary indication of the interest coverage.

5. None of the above

m. Which of these items does not represent a definite commitment to pay out funds in the future?

1. Notes payable

2. Bonds payable

3. Noncontrolling interests

4. Wages payable

5. None of the above

22. Pennington Company has a balance in its Accounts Payable control account of $9,250 on January 1,...

Pennington Company has a balance in its Accounts Payable control account of $9,250 on January 1, 2014. The subsidiary ledger contains three accounts: Hale Company, balance $3,000; Janish Company, balance $1,875; and Valdez Company. During January, the following payable-related transactions occurred.

Instructions

(a) What is the January 1 balance in the Valdez Company subsidiary account?

(b) What is the January 31 balance in the control account?

(c) Compute the balances in the subsidiary accounts at the end of the month.

(d) Which January transaction would not be recorded in a special journal?