Assignment Questions

Assuming no revaluation of fixed assets has occurred, which one of the following is the correct conclusion to draw from this trend?

A) the business has excess capacity and is not likely to need financing for new fixed assets.

B) the business has not depreciated its fixed assets according to accounting standards.

C) the business is adding to its fixed assets at about the same rate that its sales are growing.

Explain one thing your group would like to remember about these two chapters. (If you don’t like this question, make up your own question and answer it.)

Do you believe the textbook’s model could be helpful to make ethical decisions? (Note you can disagree with the text.) In what circumstances? When would this model fail?.

What means can you use to maintain an appropriate ethical orientation? (List many).

Financial statements for E-Perform Inc follow:

E-Perform, Inc

Balance Sheet

December 31

Statement of Earnings:

Additional Information:

1. The available-for-sale securities were revalued to their fair value of $128,000 at the end of 2009.

2. New equipment costing $85,000 was purchased for $25,000 cash and a $60,000 note payable

3. Old equipment having an original cost of $57,500 was sold for $1,500

4. Accounts payable relate only to merchandise creditors

5. Notes payable were repaid during the year

**Instructions: Prepare the cash flow statement using the direct method.

A company has determined that the standard for labor is 2 direct labor hrs per unit produced. The variable overhead application rate is $1 per direct per labor hr. The company produces 1000 units with 19000 direct labor. What is the variable overhead efficiency ___________

I am hoping for a step-by-step solution for this problem. (Horngren’s Cost Accounting 16th Edition – Chapter 2, number 45)

Atlanta Office Equipment manufactures and sells metal shelving. It began operations on January 1, 2017. Costs incurred for 2017 are as followed (V=variable, F=fixed):

Direct marterials used – 140,000 V
Direct manfacturing labor costs – 22,000 V
Plant Energy Costs – 5,000 V
Indirect Manufacturing labor costs – 18,000 V & 14,000 F
Other indirect manufacturing costs – 8,000 V & 26,000 F
Marketing & distribution costs – 120,000 V & 43,000 F
Admin costs – 54,000 F

Inventory data:
Direct materials: beg inv = 0, end inv = 2,300 lbs
Work in process: beg inv = 0, end inv = 0 units
Finished goods: beg inv = 0, end inv = ?

Production in 2017 was 100,000 units. 2 pounds of direct materials are used for 1 unit. Revenues were 473,200. Selling price and purchase price remained stable throughout the year. Ending inventory of finished goods is carried at average unit manufacturing cost for 2017. Finished goods inventory at December 31, 2017 was 20,970.

1. Calculate direct materials inventory, total cost, December 31, 2017
2. Calculate finished goods inventory, total cost, December 31, 2017
3. Calculate selling price in 2017
4. Calculate operating income for 2017

Argosy, Inc. has ten transactions during 2017 as follows:

Inventory purchases on credit for $2,800 (assume perpetual inventory system).

Merchandise sales to customers for $4,000 cash; $3,000 of related inventory cost.

Employees earn wages of $1,000, which are settled / paid during 2017.

Cash receipts from customers in the amount of $2,200 for credit sales made during 2016.

Payments to suppliers of $4,000 for credit purchases made during 2016.

Declaration and payment of cash dividends of $5,000.

Purchase of machinery for $8,000 with short-term notes payable.

Payment for short-term notes payable of $1,000, which includes $750 of interest from 2016.

Credit merchandise sales to customers for $6,000, with $3,900 of related inventory cost.

Payment of utility billings received in early 2017 for services received during 2016 for $1,200.

Required: Record the journal entries for these transactions (ignore dating the JE’s)

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