Friday, May 22, 2015

Assignment 3: Supply and Demand Concepts

Assignment 3: Supply and Demand Concepts
You have been hired by a new firm selling electronic dog feeders. Your client has asked you to gather some data on the supply and demand for the feeder, which is given below, and address several questions regarding the supply and demand for these feeders.
Price/Feeder
Quantity Demanded
Quantity Supplied
$300
500
1800
270
600
1700
240
700
1600
210
800
1500
180
1000
1400
150
1100
1300
120
1200
1200
90
1300
1100
60
1400
1000
30
1500
900
10
1600
800
Your client has asked that you develop a report addressing the following questions so that you can present these findings to their Board of Directors:
Questions:
Construct a graph showing supply and demand in the electronic dog feeder market, using Microsoft Excel.
How are the laws of supply and demand illustrated in this graph? Explain your answers.
What is the equilibrium price and quantity in this market?
Assume that the government imposes a price floor of $180 in the feeder market. What would happen in this market?
Assume that the price floor is removed and a price ceiling is imposed at $90. What would happen in this market?
Now, assume that the price of feeders drops by 50%. How would this change impact the demand for feeders? Explain your answer and reconstruct the graph developed in question one to show this change.
Assume that incomes of the consumers in this market increases. What would happen in this market? Explain your answer and reconstruct the graph developed in question one to show this change.
Assume that the number of sellers decreases in this market. What would happen in this market? Explain your answer and reconstruct the graph developed in question one to show this change.
Explain the difference between a normal good and an inferior good. Would your answers to question 7 change depending on whether this good is a normal or inferior good? Why?



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Thursday, May 21, 2015

Martinez Company has decided to introduce a new product

BYP18-1 
Martinez Company has decided to introduce a new product. The new product can be manufactured by either a capital-intensive method or a labor-intensive method. The manufacturing method will not affect the quality of the product. The estimated manufacturing costs by the two methods are as follows.
Capital-Intensive           Labor-Intensive
Direct materials  $5 per unit  $5.50 per unit
Direct labor  $6 per unit  $8.00 per unit
Variable overhead  $3 per unit  $4.50 per unit
Fixed manufacturing costs  $25,08,000 $15,38,000
Martinez’s market research department has recommended an introductory unit sales price of $30. The incremental selling expenses are estimated to be $502,000 annually plus $2 for each unit sold, regardless of manufacturing method.
Instructions
With the class divided into groups, answer the following.
(a) Calculate the estimated break-even point in annual unit sales of the new product if Martinez Company uses the:
(1) Capital-intensive manufacturing method.
(2) Labor-intensive manufacturing method.
(b) Determine the annual unit sales volume at which Martinez Company would be indifferent between the two manufacturing methods.
(c) Explain the circumstance under which Martinez should employ each of the two manufacturing methods.


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Brisky Corporation had net sales of $2,400,000 and interest revenue of $31,000 during 2014

Question 1 Brisky Corporation had net sales of $2,400,000 and interest revenue of $31,000 during 2014. Expenses for 2014 were cost of goods sold
$1,450,000; administrative expenses $212,000; selling expenses $280,000; and interest expense $45,000. Brisky’s tax rate is 30%. The corporation had 100,000 shares of common stock authorized and 70,000 shares issued and outstanding during 2014. Prepare a single-step
income statement for the year ended December 31, 2014. (Round earnings per share to 2 decimal places, e.g. 1.48.) BRISKY CORPORATION Income Statement For the Year Ended December 31, 2014


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Penn Foster Exam 061579

Penn Foster Exam 061579


J&L accounting assignment 


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Wednesday, May 13, 2015

Week 8 Answer Key 1) ) Which of the following is one of the reasons why companies use standard costs?

1) Which of the following is one of the reasons why companies use standard costs?
a. to enhance customer loyalty
b. to set performance targets
c. to share best practices with other companies
d. to ensure the accuracy of the financial records
2) Which of the following does the efficiency variance measure?
a. the difference between the quantity used by the company and the quantity used by its competitors
b. the change in quantities used over time
c. the difference between actual and standard quantity used
d. how quickly materials are processed into finished goods
3) The production manager of a company was experiencing a high defect rate on the assembly line, which was slowing production and causing wastage of valuable materials. He decided to recruit some highly skilled production workers from another company to bring down the defect rate, but was worried that the higher wages of these workers might negatively affect operating income. This situation would have produced a(n):
a. unfavorable direct materials cost variance.
b. unfavorable direct labor cost variance.
c. unfavorable direct labor efficiency variance.
d. unfavorable direct materials efficiency variance.
4) Which of the following is used to charge the cost of direct labor to the production?
a. Debit for standard quantity for actual production times standard cost per hour
b. Credit for standard quantity usage for actual production times actual cost per hour
c. Debit for actual quantity times standard cost per hour
d. Credit for standard quantity for actual production times standard cost per hour
5) Brad, one of the managers of a multi-national company, is responsible to generate revenues and control costs in order to increase the operating income of his division. However, he is not concerned with investment-related decisions. Brad is most likely to be the manager of a(n):
a. cost center.
b. investment center.
c. profit center.
d. revenue center.
6) If fixed costs are $1,000, variable cost per unit is $2.00 and budgeted units of output is 1,000 unites, what is the budgeted production costs?
a. $3,000
b. $4,000
c. $0
d. $2,000
Problems (10 pts each) (please show your work for partial credit)
1) Wood Designs Company, a custom cabinet manufacturing company, is setting standard costs for one of its products. The main material is cedar wood, sold by the square foot. The current cost of cedar wood is $4.00 per square foot from the supplier. Delivery costs are $0.25 per board foot. Carpenters' wages are $25.00 per hour. Payroll costs are $3.60 per hour and benefits are $5.00 per hour. How much is the direct labor cost standard (per hour)?
2) Emerald Marine Stores Company manufactures decorative fittings for luxury yachts that require highly skilled labor, and special metallic materials. Emerald uses standard costs to prepare its flexible budget. For the first quarter of 2015, direct material and direct labor standards for one of their popular products were as follows:
Direct materials: 3 pounds per unit; $4 per pound
Direct labor: 4 hours per unit; $15 per hour
During the first quarter, Emerald produced 5,000 units of this product. Actual direct materials and direct labor costs were $65,000 and $325,000, respectively.
For the purposes of preparing the flexible budget, calculate the total standard direct materials cost at a production volume of 5,000 units.
The total standard direct labor cost at a production volume of 5,000 units = 5000*4*15
The total standard direct labor cost at a production volume of 5,000 units = 300,000
Answer $300,000
3) Emerald Marine Stores Company manufactures decorative fittings for luxury yachts that require highly skilled labor, and special metallic materials. Emerald uses standard costs to prepare its flexible budget. For the first quarter of 2015, direct material and direct labor standards for one of their popular products were as follows:
Direct materials: 1 pound per unit; $12 per pound
Direct labor: 4 hours per unit; $15 per hour
Emerald produced 5,000 units during the quarter. At the end of the quarter, an examination of the materials records showed that the company used 7,000 pounds of materials and actual total material costs were $98,000.
Calculate the direct materials cost variance.
4) Accurate Tax Returns budgets 2 direct labor hours for every tax return that it prepares, at a standard cost of $32 an hour. During the most recent year, 500 returns were completed with the labor cost totaling $18,000. The actual labor cost was $36 per hour during that period. The actual number of labor hours was 1,000. What was the direct labor cost variance?
5) Elite Brands Company uses standard costs for their manufacturing division. Standards specify 0.1 direct labor hours per unit of product. At the beginning of the year, the static budget for variable overhead costs included the following data:
Production volume


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Schedule of Activity Costs Quality Control Activities Activity Cost Process audits $1,935 Training of machine operators

Schedule of Activity Costs Quality Control Activities Activity Cost Process audits $1,935 Training of machine operators 732 Processing returned products 1,029 Scrap process (disposal) 581 Rework 1,169 Preventative maintenance 709 Product design 421 Warranty
work 702 Finished goods inspection 1,603 From the above schedule of activity costs, determine the prevention costs. Select the correct answer. $5,148 $3,481 $8,881 $5,400 Costello Industries Inc. manufactures only one product. For the year ended December 31,
2014, the contribution margin increased by $16,800 from the planned level of $718,200. The president of Costello Industries Inc. has expressed some concern about such a small increase and has requested a follow-up report. The following data have been gathered
from the accounting records for the year ended December 31, 2014: Actual Planned Difference—Increase (Decrease) Sales $1,425,000 $1,402,200 $22,800 Less: Variable cost of goods sold $540,000 $564,300 $-24,300 Variable selling and administrative expenses 150,000
119,700 30,300 Total $690,000 $684,000 $6,000 Contribution margin $735,000 $718,200 $16,800 Number of units sold 15,000 17,100 Per unit: Sales price $95 $82 Variable cost of goods sold 36 33 Variable selling and administrative expenses 10 7 Required: Hide
1. Prepare a contribution margin analysis report for the year ended December 31, 2014. Costello Industries Inc. Contribution Margin Analysis For the Year Ended December 31, 2014 Planned contribution margin $ Effect of change in sales: Sales quantity factor
$ Unit price factor Total effect of change in sales Effect of changes in variable cost of goods sold: Variable cost quantity factor $ Unit cost factor Total effect of changes in variable cost of goods sold Effect of changes in variable selling and administrative
expenses: Variable cost quantity factor $ Unit cost factor Total effect of changes in variable selling and administrative expenses Actual contribution margin.



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Monday, May 4, 2015

Penn Foster 08175300 - Study Please

1. Two mutually exclusive investments cost $10,000 each and have the following cash inflows. The firm's cost of capital is 10%.
Investment:
Cash Inflow A B
Year 1 - -
Year 2 $15,407 -
Year 3 - -
Year 4 - $19,390
A. What is the net present value of each investment?
B. What is the internal rate of return for each investment?
C. Which investment(s) should the firm make and why?
D. Would your answers be different for C if the funds received in Year 2 for investment A could be reinvested at 16%
2. If a new college graduate wants a car costing $21,000, how much must be saved annually over the next four years if the funds earn 5%?
3. You purchase a bond for $875. It pays $60 a year (that is, the semiannual coupon is 3%), and the bond matures after 10 years. What is the yield to maturity?

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