Major League Bat Company manufactures baseball bats. In addition to its goods in process inventories, the company maintains inventories of raw materials and finished goods. It uses raw materials as direct materials in production and as indirect materials. Its factory payroll costs include direct labor for production and indirect labor. All materials are added at the beginning of the process, and direct labor and factory overhead are applied uniformly throughout the production process.Required:You are to maintain records and produce measures of inventories to reflect the July events of this company. The June 30 balances are as follows: Raw Materials Inventory, $25,000; Goods in Process Inventory, $10,520 ($2,800 of direct materials, $3,800 of direct labor, and $3,920 of overhead); Finished Goods Inventory, $116,000; Sales, $0; Cost of Goods Sold, $0; Factory Payroll, $0; and Factory Overhead, $0.1. Prepare journal entries to record the following July transactions and events.a. Purchased raw materials for $132,000 cash (the company uses a perpetual inventory system).b. Used raw materials as follows: direct materials, $49,900; and indirect materials, $15,000.c. Incurred factory payroll cost of $173,650 paid in cash (ignore taxes).d. Assigned factory payroll costs as follows: direct labor, $142,650; and indirect labor, $31,000.e. Incurred additional factory overhead costs of $42,795 paid in cash.f. Allocated factory overhead to production at 50% of direct labor costs.2. Information about the July inventories follows. Use this information with that from part 1 to prepare a process cost summary, assuming the weighted-average method is used. (Round "Cost per EUP" to 2 decimal places.)3. Using the results from part 2 and the available information, make computations and prepare journal entries to record the following:g. Total costs transferred to finished goods for July.h. Sale of finished goods costing $132,010 for $650,000 in cash.4. Post entries from parts 1 and 3 to the following general ledger accounts5. Compute the amount of gross profit from the sales in July. (Add any underapplied overhead too, or deduct any overapplied overhead from, the cost of goods sold.)

Question Completion:

Information about the July inventories follows:

Beginning inventory 8,000 units

Started                       17,000 units

Ending inventory       11,000 units

Beginning inventory  

Materials—Percent complete 100%

Conversion—Percent complete 80%

Ending inventory  

Materials—Percent complete 100%

Conversion—Percent complete 30%

Answer:

Major League Bat Company

1. Journal Entries:

a. Debit Raw Materials Inventory $132,000

Credit Cash Account $132,000

To record the purchase of raw materials.

b. Debit Work in Process $49,900

Debit Manufacturing Overhead $15,000

Credit Raw Materials $64,900

To record materials used.

c.  Debit Factory Wages $173,650

Credit Cash Account $173,650

To record factory payroll incurred.

d. Debit Work in Process $142,650

Debit Manufacturing Overhead $31,000

Credit Factory Wages $173,650

To assign factory payroll costs.

e. Debit Manufacturing Overhead $42,795

Credit Cash Account $42,795

To record additional factory overhead costs.

f. Debit Work In Process $71,325

Credit Manufacturing Overhead $71,325

To allocate factory overhead to production at 50% of direct labor costs.

2. Computation of Equivalent Units of Production:

                                                            Materials  Conversion   Total

Beginning inventory 8,000 units     8,000          6,400

Started                       17,000 units     17,000        17,000

Ending inventory       11,000 units      11,000         3,300

Total equivalent unit                           28,000      20,300

3. Costs of Production:

Beginning Inventory                           $2,800      $7,720

Raw materials                                     49,900    213,975

Total costs                                        $52,700 $221,695

Total equivalent unit                          28,000     20,300

Cost per equivalent unit                   $1.88        $10.92

Total costs:

Started                       17,000   $31,960     17,000  $185,640  $217,600

Ending inventory        11,000    20,680      3,300      36,036    $56,716

4. Journal Entries:

Debit Finished Goods Inventory $217,600

Credit Work In Process $217,600

To record the transfer of goods.

Debit Cost of Goods Sold $132,010

Credit Finished Goods Inventory $132,010

To record the cost of goods sold.

Debit Cash Account $650,000

Credit Sales Revenue $650,000

To record the sale of goods for cash.

5. Ledger accounts:

Raw Materials Inventory

Accounts Titles       Debit         Credit

Balance                $25,000

Cash Account       132,000

Work in Process                     $49,900

Manufacturing Overhead         15,000

Work In Process

Accounts Titles       Debit         Credit

Balance              $10,250

Raw materials     49,900

Factory Wages  142,650

Manufacturing

Overhead           71,325

Finished Goods Inventory    $217,600

Balance                                      56,716

Manufacturing Overhead

Accounts Titles       Debit         Credit

Raw materials      $15,000

Factory wages       31,000

Other overheads  42,795

Work in Process applied       $71,325

Underapplied overhead          17,470

6. Income Statement:

For July

Sales Revenue                             $650,000

Cost of goods sold         132,010

Underapplied overhead  17,470  $149,480

Gross profit                                 $500,520

Explanation:

a) Data and Calculations:

June 30 Balances:

Raw Materials Inventory, $25,000;

Goods in Process Inventory, $10,520 ($2,800 of direct materials, $3,800 of direct labor, and $3,920 of overhead);

Finished Goods Inventory, $116,000;

Sales, $0;

Cost of Goods Sold, $0;

Factory Payroll, $0; and

Factory Overhead, $0.1.

Assume you invested $100,000 into your lawn mowing business, but you could have invested in a similar operation with the same risk and received a 20 percent return. You should expect a “normal profit “ of $ _____________ . (Answer to the nearest whole number of THOUSANDS of dollars)

Ian loaned his friend $20,000 to start a new business. He considers this loan to be an investment, and therefore requires his friend to pay him an interest rate of 7% on the loan. He also expects his friend to pay back the loan over the next four years by making annual payments at the end of each year. Ian texted and asked that you help him calculate the annual payments that he should expect to receive so that he can recover his initial investment and earn the agreed-upon 7% on his investment.

Required:
Calculate the annual payment and complete the following capital recovery schedule:

Year Beginning Amount Payment Interest Paid Principal Paid Ending Balance

Which action taken by a central bank would reflect expansionary monetary policy?

Sanborn Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100,000 for the year.
Activity Cost Pool Cost Driver Est. Overhead Cost Driver Activity
Ordering and Receiving Orders $120,000 500 orders
Machine Setup Setups 297,000 450 setups
Machining Machine hours 1,500,000 125,000 MH
Assembly Parts 1,200,000 1,000,000 parts
Inspection Inspections 300,000 500 inspections
If overhead is applied using traditional-based costing on direct labor hours, the overhead application rate is:___________.
a) 9.60
b) 12.00
c) 15.00
d) 34.17

General store accounts were the easiest forms of credit
-true
-false

Product Director: We need to pick the best manager for the Prensabi software project. The project involves the latest technology and is very complicated. For example, this project uses a technology called Stage, which is a motion-capture technique that does not require actors to wear specialized gear to record their movements. Since this is a technical project that requires strong technical skills, we should pick the manager with the strongest technical skills. Executive: The manager needs some familiarity with the technology, but he or she won't actually be writing the software code. The bigger challenge here is to analyze the goals of the project and make sure that it is being developed according to a strong overall vision. That's why we should insist that the manager has outstanding conceptual skills. Which of the following, if true, weakens the product director's argument?
a) The project manager with the weakest technical skills also has the weakest human skills
b) The Prensabi project is so large that the project manager for the Prensab project will be unable to take on any other projects until the Prensabi project is inished.
c) The requirements of the Prensabi project are highly unusual.
d) The project manager with the strongest technical skills has no experience with
e) The project manager with the strongest conceptual skills has the weakest technical skills.

Key figures for Apple and Google follow.

$ millions Apple Google
Cash and equivalents. . . . . . . $20,484 $12,918
Accounts receivable, net. . . . . 15,754 14,137
Inventories. . . . . . . . . . . . 2,132 268
Retained earnings. . . . . . . . . 96,364 105,131
Cost of sales. . . . . . . . . . . 131,376 35,138
Revenues. . . . . . . . . . . . . . 215,639 90,272
Total assets. . . . . . . . . . . . 321,686 167,497

Required:
a. Compute common-size percents for each of the companies using the data provided.
b. If Google decided to pay a dividend, would retained earnings as a percent of total assets increase or decrease

A company looking to expand internationally with little risk would choose?

You want a seat on the board of directors of Red Cow, Inc. The company has 260,000 shares of stock outstanding and the stock sells for $51 per share. There are currently 5 seats up for election. The company uses straight voting. How much will it cost you to guarantee that you will be elected to the board

Type the correct answer in the box. Spell all words correcty.
George has to present the goals of information management to his team member. What is a goal of Information management?
The goal of Information management is to identify information requirements for various what levels

Ishmael’s, a localgrocer, offers to purchase all of the corn produced by Whittaker Farms for $4.15/bushel. Whittaker Farms agrees. Although at first glance this looks like an illusory contract because Whittaker Farms is not obligated to produce any corn, it is actually a valid ____ contract.

Apply What You’ve Learned - Managing Credit Cards and ConsumerLoans
Scenario: You are 30 years old, married, have two children, and household income (take-home pay) of$3,500 per month. Your credit and consumer debt is as follows:_______.
• Car loan, 6% interest rate, $10,000 balance, $295 per month
• Department store card, 28% interest rate, $600 balance, minimum payment 5% of balance
• Discover Card, 12% interest rate, $2,000 balance, minimum payment 2% of balance
• VISA Card, 13% interest rate, $3,000 balance, minimum payment 2% of balance
• MasterCard 1, 14% interest rate, $4,000 balance, minimum payment 2% of balance
• MasterCard 2, 14% interest rate, $0 balance, minimum payment 2% of balance
• Gasoline card, 21% interest rate, $300 balance, minimum payment 5% of balance
Assume all credit cards will assess a $35 late fee and ongoing penalty interest of 8% above the currentrate if you miss a payment. Your recent VISA card statement came with a blank cash advance check(for up to $10,000) with terms of 23.99% APR and a fee of 3% if you use it. Your recent MasterCard 2statement came with a balance transfer oFer (up to $4,000) with no fee and 0% APR for 12 months,after which the normal interest rate applies. You recently found an incorrect amount charged on yourVISA card from a store you frequent often. You’d like to come up with a plan to eliminate all of yourcredit card debt.
In general, is it a good idea to make only minimum payments on your credit cards?
Yes, you can invest the money saved each month to earn interest.
No, it will cause your interest rate to go up.
No, the small payment requirement is mathematically guaranteed to keep you in debt for manyyears.
Yes, this allows you more ±exibility in your cash budget.
Assuming you have $1,500 in your budget this month with which to pay down your credit cards, howmuch should you pay on each card?
CardInterestrateOutstandingRequired minimumRecommendedbalancepayment(%)payment($)debtrepaymentamount
store card
Discover Card12%2,0008%
VISA Card13%3,00010%
MasterCard 114%4,0008%
MasterCard 214%010%
Gasoline card21%30015%
Total$9,900$1,500

Mark M. Upp has just been fired as the university book store manager for setting prices too low (only 20% above suggested retail). He is considering opening a competing bookstore near the campus, and he has begun an analysis of the situation. There are two possible sites under consideration. One is relatively small, while the other is large. If he opens at Site 1 and demand is good, he will generate a profit of $50,000. If demand is low, he will lose $10,000. If he opens at Site 2 and demand is high he will generate a profit of $80,000, but he will lose $30,000 if demand is low. He also has decided that he will open at one of these sites. He believes that there is a 50% chance that demand will be high. He assigns the following utilities to the different profits:
U = 50,000 = ? U(-10,000) = 0.22
U = 80,000 = 1 U(-30,000) = 0
For what value of utility for $50,000, U(50000), will Mark be indifferent between the two alternatives?

caculate the orithmetic mean of the number 42,56,38,41,86,
56​

Compute and Interpret Liquidity and Solvency Ratios

Selected balance sheet, income statement and cash flow statement information from Tesla, Inc. for 2017 and 2016 follows ($ thousands).

December 31 2017 2016
Cash and cash equivalents $3,701,247 $3,726,549
Restricted cash 156,545 106,741
Net receivables 515,381 499,142
Inventory 2,263,537 2,067,454
Other current assets 268,365 194,465
Current assets 6,905,075 6,594,351
Current liabilities 7,674,670 5,827,005
Total liabilities 23,022,980 16,750,167
Stockholders' equity 5,965,725 6,247,242
Year ended December 31, 2017
Loss before income taxes $(2,209,032)
Interest expense 504,592
Cash flows from operating activities (59,432)
Capital expenditures (3,748,147)
a. Compute the current ratio and quick ratio for each year.

Note: Round answers to two decimal places.

2017 2016
Current ratio Answer
0.9

Answer
1.13

Quick ratio Answer Answer
b. Compute the debt-to-equity ratio for 2017 and 2016 and the times-interest-earned ratio for 2017.

Note: Round answers to two decimal places. Use a negative sign with your answer, if appropriate.

2017 2016
Debt-to-equity ratio Answer
3.86

Answer
2.68

Times interest earned ratio Answer
c. Compute the cash burn rate for 2017.

Note: Round answer to the nearest whole number. Use a negative sign with your answer, if appropriate.

$Answer

thousand per day

Firms often seek to borrow money to expand their capital stock, and the price they pay for the money is the interest rate. What happens to quantity of money demanded if the interest rate increases

Indicate which of the following transactions will be included in (that is, directly increase) the GDP of the United States in 2017.

a. Athleticus, a U.S. shoe company, produces a pair of sneakers at a plant in Vietnam on March 10, 2017. Athleticus imports the pair of sneakers into the United States on May 20, 2017.
b. An accountant starts a client's 2017 tax return on April 14, 2018, finishing it just before midnight on April 15, 2018.
c. Graincorp, a U.S. agricultural company, produces corn syrup at a plant in Iowa on September 13, 2017. It sells the corn syrup to Crunchy's for use in the production of cereal that will be made in the United States in 2017. (Note: Focus exclusively on whether production of the corn syrup increases GDP directly, and ignore the effect of production of the cereal on GDP.)
d. Tasty's, a U.S. fast-food company, produces a hamburger at one of its many St. Louis locations on January 21, 2017. It sells the hamburger to a customer that same day.
e. Chocolate Express, a Swiss chocolate company, produces a chocolate bar at a plant in Illinois on December 5, 2017. An elementary school student buys the chocolate bar on December 24.

Connors Corporation acquired manufacturing equipment for use in its assembly line. Below are four independent situations relating to the acquisition of the equipment. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
A. The equipment was purchased on account for $25,000. Credit terms were 2/10, n/30. Payment was made within the discount period and the company records the purchases of equipment net of discounts.
B. Connors gave the seller a noninterest-bearing note. The note required payment of $27,000 one year from date of purchase. The fair value of the equipment is not determinable. An interest rate of 10% properly reflects the time value of money in this situation.
C. Connors traded in old equipment that had a book value of $6,000 (original cost of $14,000 and accumulated depreciation of $8,000) and paid cash of $22,000. The old equipment had a fair value of $2,500 on the date of the exchange. The exchange has commercial substance.
D. Connors issued 1,000 shares of its nopar common stock in exchange for the equipment. The market value of the common stock was not determinable. The equipment could have been purchased for $24,000 in cash.
Required:
For each of the above situations, prepare the journal entry required to record the acquisition of the equipment.

Despite its status as one of the richest countries in the world, Japan a. has a very low level of productivity. b. has few natural resources. c. has very little human capital. d. engages in a relatively small amount of international trade.

‘Buffer stock’ is the level of stock​

Parent Inc acquired 90% of Sub Inc on January 1, 20X8. Parent paid 50% of the acquisition price by cash and fund the rest with a notes payable. The book value of Sub’s individual assets and liabilities approximated their acquisition-date fair values. On the date of acquisition, Sub reported the following:

Cash and Receivables $116,000
Accounts Payable 531,000
Inventory 331,000
Buildings & Equipment (net) 621,000
Common Stock 585,000
Land 748,000
Retained Earnings 700,000
Total $1,816,000
Total 1,816,000

During the year Sub reported $800,000 in net income and declared $432,000 in dividends. Parent reported $506,000 in net income and declared $196,000 in dividends. Parent accounts for their investment using the equity method.

Required:
a. What journal entry will Parent make on the date of acquisition to record the investment in Son Inc.?
b. If Parent were to prepare a consolidated balance sheet on the acquisition date (January 31, 20X2), what is the basic consolidation entry Parent would use in the consolidation worksheet?
c. What is Parent’s balance in "Investment in Son Inc." prior to consolidation on December 31, 20X2?
d. What is the basic consolidation entry Parent would use in the consolidation worksheet on December 31, 20X2?

Sara’s Salsa Company produces its condiments in two types: Extra Fine for restaurant customers and Family Style for home use. Salsa is prepared in department 1 and packaged in department 2. The activities, overhead costs, and drivers associated with these two manufacturing processes and the company’s production support activities follow.

Process Activity Overhead cost Driver Quantity
Department 1 Mixing $4,500 Machine hours 1,500
Cooking 11,250 Machine hours 1,500
Product testing 112,500 Batches 600
$128,250

Department 2 Machine calibration $250,000 Production runs 400
Labeling 12,000 Cases of output 120,000
Defects 6,000 Cases of output 120,000
$268,000

Support Recipe formulation $90,000 Focus groups 45
Heat, lights, and water 27,000 Machine hours 1,500
Materials handling 65,000 Container types 8
$182,000

Additional production information about its two product lines follows.

Extra Fine Family Style
Units produced 20,000 cases 100,000 cases
Batches 200 batches 400 batches
Machine hours 500 MH 1,000 MH
Focus groups 30 groups 15 groups
Container types 5 containers 3 containers
Production runs 200 runs 200 runs

Required:
Using ABC, compute the total cost per case for each product type if the direct labor and direct materials cost is $6 per case of Extra Fine and $5 per case of Family Style.

Question 7
5 pts
(03.02 MC)
Gina made a down payment on a motorcycle. What incentive did she have for making a down payment?
O A tax break
O A higher loan rate
O A less secure loan
O A reduced time in debt

The City of Waterville applied for a grant from the state government to build a pedestrian bridge over the river inside the city’s park. On May 1, the city was notified that it had been awarded a grant of up to $200,000 for the project. The state will provide reimbursement for allowable expenditures. On May 5, the special revenue fund entered into a short-term loan with the General Fund for $200,000 so it could start bridge construction. During the year, the special revenue fund expended $165,000 for allowable bridge construction costs, for which it submitted documentation to the state. Reimbursement was received from the state on December 13, 2017.

Required:
For the special revenue fund, provide the appropriate journal entries, if any, that would be made for the following.

a. May 5, 2017, loan from General Fund.
b. During FY 2017, bridge expenditures and submission of reimbursement documentation.
c. December 13, 2017, receipt of the grant reimbursement funds.
d. December 31, 2017, adjusting and closing entries.

We run a delivery service, and we believe our firm has market risk equally between that of UPS and FedEx. We know the following about these 2 firms:______.
Stock Price per share # shares outstanding Market Value of Debt
UPS $65 0.7 billion $ 5 billion
FedEx $55 250 million $ 3 billion
We also have the following data on the securities of these firms:_______.
Beta E Beta D
UPS 0.8 0
FedEx 1.1 0.1
Assume that our firm has risk-free debt with market value $20 million and equity with market value $450 million. Assume that taxes are not relevant. Please estimate our firm’s equity beta

Cash flows from operations may not be sufficient for a firm to keep up with growth-related financing needs, or the firm may not be able to always generate enough cash flow to maintain a surplus of cash. Firms prefer to borrow now to fulfill their capital requirements through means of short-term financing or long-term financing. Both methods have their advantages and disadvantages.

The following statement identifies a possible characteristic of short-term financing.

Consider this case:
Short-term loans usually have a lower cost than long-term loans. Identify whether the preceding statement is true or false.

a. This statement is false and a disadvantage of short-term financing.
b. This statement is true and an advantage of short-term financing.

Firms use a variety of short-term financing sources to support working capital. Use the descriptions in the following table to identify the short-term financing source.

Description Short-Term Financing Source
A formal, committed line of credit extended by a bank or other lending institution.
An obligation backed by collateral, often inventories or accounts receivable.

The following information pertains to Windsor Solar Panels, Inc.
July 1 Sold $128,000 of solar panels to Wildhorse Company with terms 3/15, n/30. Windsor uses the gross method to record cash discounts. Windsor estimates allowances of $1,500 will be honored on this sale.
12 Sold $82,000 of solar panels to Novak Corp. with terms of 4/10, n/60. Windsor expects no allowances related to this sale.
18 Novak Corp. paid Windsor for its July 12 purchase.
20 Wildhorse calls to indicate that the panels purchased on July 1 work well, but the color is not quite right. Windsor grants a credit of $2,100 as compensation.
29 Wildhorse Company paid Windsor for its July 1 purchase.
31 Windsor expects allowances of $5,340 to be grated in the future related to solar panel sales in July.
Prepare the necessary journal entries for Larkspur. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.)
Date Account Titles and Explanation Credit Debit
July 18

In respect to organizational structure and decision making, a "Flat Structure" is best characterized as:___________
a) A management structure characterized by an overall narrow span of management, a relatively large number of hierarchical levels, tight control, and reduced communication overhead. Decision-making can be quite rapid, if it occurs from the top down.
b) A management structure characterized by a wide span of control and relatively few hierarchical levels, loose control, and ease of delegation. Decision-making is often slower, as it involves a high degree of integration across the company.
c) The location of decision making authority near top organizational levels.
Similar to a tall structure, this expedites decision-making from the top down.
d) The location of decision making authority is relatively evenly dispersed across the company. This works well when creativity and independent operations create value for the organization.
e) None of the answers in this answer set are correct.

Amy and Mitchell share equally in the profits, losses, and capital of the accrual basis AM Products LLC. The LLC does not need to report financial information to any third parties, so capital accounts are determined using tax rules (rather than GAAP). Amy is a managing member of the LLC (treated as a general partner) and is a U.S. person. At the beginning of the current tax year, Amy's capital account has a balance of $960,000, and the LLC has debts of $624,000 payable to unrelated parties. The debts are recourse to the LLC, but neither of the LLC members has personally guaranteed them. Assume that all LLC debt is shared equally between the partners. The following information about AM's operations for the current year is obtained from the LLC's records.


Ordinary income $900,000
W-2 wages to employees 200,000
Depreciation expense 300,000
Interest income from bond 4,000
Long-term capital loss 6,000
Short-term capital gain 12,000
Charitable contribution 4,000
Cash distribution to Amy 20,000
Unadjusted basis of partnership depreciable property 1,600,000

Year-end LLC debt payable to unrelated parties is $140,000.

Required:
What income, gains, losses, and deductions does Amy report on her income tax return?

Assume that on January 1, 2012, a parent company acquired a 70% interest in a subsidiary's voting common stock. On the date of acquisition, the fair value of the subsidiary's net assets equaled their reported book values except for machinery and equipment, which had a fair value of $480,000 and a reported book value of $250,000. The machinery and equipment had a 5 year remaining useful life and no salvage value. The following are the highly summarized pre-consolidation income statements of the parent and subsidiary for the year ended December 31 , 2013:


Income Statement Parent Subsidiary
Revenues $2,160,000 $288,000
Equity income 60,200
Expenses 1440000 144,000
Net income $780,200 144,000

For the year ended December 31, 2013, what amounts will be reported for (1) consolidated net income and (2) net income attributable to the non-controlling interest, respectively, in the parent's consolidated financial statements?