Sweet Acacia uses LIFO inventory costing. At January 1, 2020, inventory was $334,640 at both cost and market value. At December 31, 2020, the inventory was $425,820 at cost and $400,440 at market value. Prepare the necessary December 31 entry under (a) the cost-of-goods-sold method and (b) loss method. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Answer:

January 1, 2020, inventory was $334,640 at both cost and market value.

December 31, 2020, the inventory was $425,820 at cost and $400,440 at market value.

When using lower of cost or market value, we must record our inventory at whichever is lower. The total loss of inventory value = $425,820 - $400,440 = $25,380.

a) the cost-of-goods-sold method

December 31, adjustments to record loss on inventory's market value.

Dr Cost of goods sold 25,380

    Cr Inventory* 25,380

b) loss method

December 31, adjustments to record loss on inventory's market value.

Dr Loss due to decline of inventory to market value 25,380

    Cr Inventory* 25,380

*Depending on what account you are told to use (instead of inventory account) you might be required to use the Allowance to reduce inventory to market value account.

Flagstaff Company has budgeted production units of 7,900 for July and 8,100 for August. The direct materials requirement per unit is 2 ounces (oz.). The company requires to have safety stock of direct materials on hand at the end of each month to complete 20% of the units of budgeted production in the following month. There was 3,160 ounces of direct material in inventory at the start of July. The total ounces of direct materials to be purchased in July is:

Smart Stream Inc. uses the total cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 10,000 units of cell phones are as follows: Variable costs per unit: Fixed costs: Direct materials $150 Factory overhead $350,000 Direct labor 25 Selling and administrative expenses 140,000 Factory overhead 40 Selling and administrative expenses 25 Total variable cost per unit $240 Smart Stream desires a profit equal to a 30% return on invested assets of $1,200,000.
a. Determine the variable costs and the variable cost amount per unit for the production and sale of 10,000 cellular phones. Total variable cost $ Variable cost amount per unit $
b. Determine the variable cost markup percentage for cellular phones. Round to two decimal places.
c. Determine the selling price of cellular phones. If required, round to the nearest dollar.

Which one of the following statements is correct concerning the mutual fund cash ratio​ (MFCR)? A. When mutual funds have a lot of cash it is a bearish signal because managers are not buying stocks. Your answer is not correct.B. A high MFCR is like high short interest in that it indicates pent up demand. This is the correct answer.C. Low mutual fund cash is bullish because it means managers have been buying stocks. D. High mutual fund cash indicates that fund managers might be forced to sell securities should investors wish to withdraw​ funds, a bearish signal.

Dan Bumblauskas is the owner of a small Iowa company that produces electric knives used to cut fabric. The annual demand is for 10 comma 500 ​knives, and Dan produces the knives in batches. On​ average, Dan can produce 190 knives per​ day; during the production​ process, demand has been about 70 knives per day. The cost to set up the production process is ​$85​, and it costs Dan ​$1.10 to carry a knife for 1 year. How many knives should Dan produce in each​ batch?

Your bagel shop uses both capital and labor in the production of bagels. In this production process capital and labor are substitutes. If you install a new oven and the marginal product of capital increases, you will:

a. reduce the number of workers you employ
b. increase the number of workers you employ
c. reduce the amount of capital you are using not make any changes since you are already maximizing profit

On January 1, Year 1, Zero Company obtained a $52,000, 4-year, 6.5% installment note from Regional Bank. The note requires annual payments consisting of principal and interest of $15,179, beginning on December 31 of the current year. Of the first payment due on December 31 of Year 1, how much of the $15,179 payment will go toward paying down the principal balance of the note payable?

Hawk-Dove (or Chicken) (t = tough, c = concede)
Two (young) players are engaged in a conflict situation. For instance, they may be racing their cars towards
each other on Main Street, while being egged on by their many friends. If player 1 hangs tough and stays in
the center of the road while the other player concedeschickens outby moving out of the way, then all glory is
his and the other player eats humble pie. If they both hang tough they end up with broken bones, while if
they both concede they have their bodiesbut not their prideintact.
Player 1 \ Player 2 t c
t -1,-1 10,0
c 0, 10 5, 5
The matrix form can be used to compactly represent the strategic form when there are two players even if
each player has more than two strategies to choose from.

The following information relates to the pension plan for the employees of Turner Co.: 1/1/20 12/31/20 12/31/21 Projected benefit obligation 9,765,000 10,458,000 14,007,000 Fair value of plan assets 8,925,000 10,920,000 12,054,000 AOCI – net (gain) or loss -0- (1,512,000) (1,680,000) Settlement rate (for year) 11% 11% Expected rate of return (for year) 8% 7% Turner estimates that the average remaining service life is 16 years. Turner's contribution was $1,323,000 in 2021 and benefits paid to retired employees was $987,000. The amount of AOCI (net gain) amortized in 2021 is

Which one of the following statements regarding disclosure is true?
1. The seller and licensees need not disclose to a prospective buyer the manner or occurrence of an occupant's death in the home if it occurred within the past three years.
2. HIV/AIDS cannot be disclosed even when asked; by law HIV/AIDS are not material facts that require disclosure.
3. If an occupant died of AIDS or an AIDS-related syndrome within the past three years, that fact must be disclosed to a prospective buyer.
4. If asked by a prospective buyer if an occupant died of AIDS or an AIDS-related syndrome within the last three years, the seller or licensee must reply truthfully if known.

Decision on Accepting Additional Business Homestead Jeans Co. has an annual plant capacity of 65,000 units, and current production is 45,000 units. Monthly fixed costs are $54,000, and variable costs are $29 per unit. The present selling price is $42 per unit. On November 12 of the current year, the company received an offer from Dawkins Company for 18,000 units of the product at $32 each. Dawkins Company will market the units in a foreign country under its own brand name. The additional business is not expected to affect the domestic selling price or quantity of sales of Homestead Jeans Co. a. Prepare a differential analysis dated November 12 on whether to reject (Alternative 1) or accept (Alternative 2) the Dawkins order. If an amount is zero, enter "0". If required, use a minus sign to indicate a loss.

Employer-sponsored employee assistance programs (EAPs) are created to help workers overcome hurdles in their personal lives. Which employee is the most likely to receive help under a typical EAP? A. John Jones, who needs assistance to overcome a chemical dependency problem B. Steve Brown, who needs legal advice for his brother’s bankruptcy proceeding C. Cindy Savage, who needs a list of shop mall near the office D. Kate Johnson, who needs help choosing an appropriate M.B.A. program

Financial statement data for the years ended December 31 for Parker Corporation are as follows: Current Year Prior Year Sales $2,595,600 $2,409,498 Fixed assets (net): Beginning of year $901,070 $820,000 End of year 829,330 901,070 a. Determine the fixed asset turnover ratio for the current and prior years. Round your answers to one decimal place. Current Year: Prior Year: b. Does the change in fixed asset turnover ratio from the prior year to the current year indicate a favorable or unfavorable trend

When Starbucks sells "Starbucks" T-shirts in its coffee shops or when the Chicago Cubs peddle cubs branded merchandise at Wrigley Field, why are their marketers so happy?

Anderson Steel Company began 2018 with 550,000 shares of common stock outstanding. On March 31, 2018, 140,000 new shares were sold at a price of $50 per share. The market price has risen steadily since that time to a high of $55 per share at December 31. No other changes in shares occurred during 2018, and no securities are outstanding that can become common stock. However, there are two agreements with officers of the company for future issuance of common stock. Both agreements relate to compensation arrangements reached in 2017. The first agreement grants to the company president a right to 42,000 shares of stock each year the closing market price is at least $53. The agreement begins in 2019 and expires in 2022. The second agreement grants to the controller a right to 47,000 shares of stock if she is still with the firm at the end of 2026. Net income for 2018 was $5,200,000.
Required:
Compute Anderson Steel Company's basic and diluted EPS for the year ended December 31, 2018. (Enter your answers in thousands.)

On January 1, 2017, Culver Company issued 10-year, $2,060,000 face value, 6% bonds, at par. Each $1,000 bond is convertible into 15 shares of Culver common stock. Culverâs net income in 2017 was $291,000, and its tax rate was 40%. The company had 108,000 shares of common stock outstanding throughout 2017. None of the bonds were converted in 2017.Required:(a) Compute diluted earnings per share for 2017. (Round answer to 2 decimal places, e.g. $2.55.)(b) Compute diluted earnings per share for 2017, assuming the same facts as above, except that $1,080,000 of 6% convertible preferred stock was issued instead of the bonds. Each $100 preferred share is convertible into 5 shares of Culver common stock.

On January 1, 2021, Hoosier Company purchased $940,000 of 10% bonds at face value. The bond market value was $985,000 on December 31, 2021. Required: Prepare the appropriate journal entry on December 31, 2021, to properly value the bonds assuming the bonds are classified as: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Trading securities. Securities available-for-sale. Held-to-maturity securities.

The following information will be used for 2 questions on this exam: Charlotte Corporation's management keeps track of the time it takes to process orders. During the most recent month, the following average times were recorded per order: Time spent between receipt of order and start of production 3.7 days Time spent ensuring quality levels 0.2 days Time spent working on the product 1.3 days Time spent transporting the product between work stations 0.8 days Time spent waiting to be worked on in the factory 6.9 days What is the throughput time?

The following information is taken from the accounts of Latta Company. The entries in the T-accounts are summaries of the transactions that affected those accounts during the year. Manufacturing Overhead (a) 486,144 (b) 405,120 Bal. 81,024 Work in Process Bal. 10,880 (c) 754,000 298,500 90,500 (b) 405,120 Bal. 51,000 Finished Goods Bal. 39,000 (d) 662,000 (c) 754,000 Bal. 131,000 Cost of Goods Sold (d) 662,000 The overhead that had been applied to production during the year is distributed among Work in Process, Finished Goods, and Cost of Goods Sold as of the end of the year as follows: Work in Process, ending $ 24,480 Finished Goods, ending 62,880 Cost of Goods Sold 317,760 Overhead applied $ 405,120 For example, of the $51,000 ending balance in work in process, $24,480 was overhead that had been applied during the year. Required: 1. Identify reasons for entries (a) through (d). 2. Assume that the underapplied or overapplied overhead is closed to Cost of Goods Sold. Prepare the necessary journal entry. 3. Assume that the underapplied or overapplied overhead is closed proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the necessary journal entry.

Foreman Mining purchased land containing a copper deposit for $2,640,000 on January 7, 2021. The company expects to mine 770,000 tons of copper over the next 10 years, and the land is expected to have a residual value of $1,408,000. The company has also purchased mining equipment for $570,000 that will be used only at this site over the 10 years with an estimated residual value of $54,100. By the end of the first year, the company has mined and sold 61,000 tons of copper. What is the cost attributed to copper inventory for 2021, assuming the company uses the units-of-production method?

g Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 20Y1, Smiley issued $20,000,000 of five-year, 9% bonds at a market (effective) interest rate of 8%, receiving cash of $20,811,010. Interest is payable semiannually on April 1 and October 1. a. Journalize the entry to record the issuance of bonds on April 1, 20Y1. If an amount box does not require an entry, leave it blank. b. Journalize the entry to record the first interest payment on October 1, 20Y1, and amortization of bond premium for six months, using the straight-line method. If an amount box does not require an entry, leave it blank. c. Why was the company able to issue the bonds for $20,811,010 rather than for the face amount of $20,000,000? The market rate of interest is the contract rate of interest.

The budgeted income statement presented below is for Burkett Corporation for the coming fiscal year. If Burkett Corporation is able to achieve the budgeted level of sales, its margin of safety in dollars would be?



Sales (50,000 units) $1,000,000



Costs:


Direct materials $270,000


Direct labor 240,000


Fixed factory overhead 100,000


Variable factory overhead 150,000


Fixed marketing costs 110,000


Variable marketing costs 50,000 920,000


Pretax income $80,000

Which of the following statements generates the greatest amount of disagreement among economists? a. Increases in the money supply shift aggregate demand to the right. b. In the long run, increases in the money supply increase prices, but not output. c. Recessions are associated with decreases in consumption, investment, and employment. d. Government should use fiscal policy to try to stabilize the economy.

The following present value factors are provided for use in this problem. Periods Present Value of $1 at 8% Present Value of an Annuity of $1 at 8% 1 0.9259 0.9259 2 0.8573 1.7833 3 0.7938 2.5771 4 0.7350 3.3121 Xavier Co. wants to purchase a machine for $36,300 with a four year life and a $1,200 salvage value. Xavier requires an 8% return on investment. The expected year-end net cash flows are $11,300 in each of the four years. What is the machine's net present value

A firm that has an ROE of 12% is considering cutting its dividend payout. The stockholders of the firm desire a dividend yield of 4% and a capital gain yield of 9%. Given this information, which of the following statements is (are) correct? I. All else equal, the firm's growth rate will accelerate after the payout change. II. All else equal, the firm's stock price will go up after the payout change. III. All else equal, the firm's P/E ratio will increase after the payout change. Multiple Choice I only

Coast to Coast Surfboards Inc. manufactures and sells two styles of surfboards, Atlantic Wave and Pacific Pounder. These surfboards are sold in two regions, East Coast and West Coast. Information about the two surfboards is as follows:
Atlantic Wave Pacific Pounder
Sales price $280 $130
Variable cost of goods sold per unit 220 97
Manufacturing margin per unit $60 $33
Variable selling expense per unit 32 18
Contribution margin per unit $28 $15
The sales unit volume for the sales territories and products for the period is as follows:
East Coast West Coast
Atlantic Wave 30,000 21,000
Pacific Pounder 0 21,000
Required:
Prepare a contribution margin by sales territory report. Calculate the contribution margin ratio for each territory as a whole percent

A company used straight-line depreciation for an item of equipment that cost $15,350, had a salvage value of $3,200 and a six-year useful life. After depreciating the asset for three complete years, the salvage value was reduced to $1,535 but its total useful life remained the same. Determine the amount of depreciation to be charged against the equipment during each of the remaining years of its useful life: Multiple Choice $2,880. $5,672. $1,215. $2,580. $3,200.

Todd is working on resource scheduling in preparation for the start of a project. There is a potential problem in the works, however, as the new collective bargaining agreement with the company's union has not been concluded. Todd decides to continue working on the resource schedule in anticipation of a satisfactory settlement. Todd's approach would be an example of which method of dealing with risk

Thunder Corporation's balance sheet and income statement appear below: Comparative Balance Sheet Ending Balance Beginning Balance Assets: Cash and cash equivalents $ 28 $ 31 Accounts receivable 60 65 Inventory 41 42 Property, plant, and equipment 454 380 Less accumulated depreciation 206 172 Total assets $ 377 $ 346 Liabilities and stockholders' equity: Accounts payable $ 43 $ 45 Bonds payable 190 260 Common stock 41 40 Retained earnings 103 1 Total liabilities and stockholders' equity $ 377 $ 346 Income Statement Sales $ 874 Cost of goods sold 533 Gross margin 341 Selling and administrative expense 161 Net operating income 180 Income taxes 54 Net income $ 126 The company did not dispose of any property, plant, and equipment, issue any bonds payable, or repurchase any of its own common stock during the year. The company declared and paid a cash dividend of $24. Required: Prepare a statement of cash flows in good form using the indirect method.

A company sold $12,000 worth of bicycles with an extended warranty. The company’s experience is that warranty expense averages 2% of sales. The current period’s entry to record the warranty expense is: Multiple Choice Debit Warranty Expense $240; credit Cash $240. Debit Prepaid Warranties $240; credit Warranty Expense $240. Debit Estimated Warranty Liability $240; credit Cash $240. Debit Sales Allowances $240; credit Estimated Warranty Liability $240. Debit Warranty Expense $240; credit Estimated Warranty Liability $240.

Information on Carney Company's fixed overhead costs follows: Overhead applied $ 361,200 Actual overhead 387,300 Budgeted overhead 372,000 Required: What are the fixed overhead price and production volume variances? (Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)