Placeholder

DeVry ACCT 505 Full Course Latest

$120.00

Quantity:

Product Description

DeVry ACCT 505 Full Course Latest

DeVry ACCT 505 Full Course Latest

ACCT505

DeVry ACCT 505 Full Course Latest

DeVry ACCT 505 Week 1 Discussion 1 Latest

Cost Terms, Classifications, and Behavior (graded)

To get us started, let’s discuss the income statement and what this statement tells us. What are we looking for when we look at the income statement??? Think in terms of what is covered in our chapter readings for this week. Anyone?

I will post more topics and questions as the week progresses. Have fun!

I am looking for a minimum of 3 “quality” posts to this thread area (I call this our discussion thread)(each post needs to be on a different day and your first post needs to be made by the end of the day Wednesday). I am looking for more than 4 sentences in your posts. Don’t repeat what someone else has already stated, but rather expand on what they have stated, provide examples, share relevant experiences with the class, etc. I do not give credit for repeating what someone else has already stated. Make sure you read the announcement titled Academic Integrity in Posting announcement.

Please include proper APA citations for your posts that use materials from other sources (including the textbook). lists options that can be used to view responses.

DeVry ACCT 505 Week 1 Discussion 2 Latest

Work Out Room (graded)

I will be posting problems for us to work on though out the week in this thread area. (Please post only 3 times in this thread area with each post on a different day…Thanks!)

Let’s start out by looking at the first problem noted below:

Go to page 129, Case 3-29, Ethics and the Manager. Let’s discuss the questions, make value-added comments and points, and share personal experiences of unethical situations.

RULES FOR THE WORK OUT ROOM: We will have a Work Out Room each week. We will be going over some of the problems in the text along with other problems that I feel will enhance your understanding of the materials. I want everyone to post 3 times (each post on a different day) during the week in this thread area. (Please post only 3 quality posts to this thread) This week we will start out with some problems from chapter 2.  I will be posting problems that we will work on each day. If a problem has multiple section, do only one part (this gives other a chance also). If someone else has already answered a problem but you disagree with their answer, tell us what you think the answer should be. If someone has answered the problem and you agree, move on to another problem (don’t repeat!!! – I don’t give credit for repeating). If all of the problems have been answered, wait until the next day for a new problem. I try to post new problems each day. If you have any questions, please let me know!!!

DeVry ACCT 505 Week 2 Discussion 1 Latest

Job Order and Process Costing Systems (graded)

Welcome to our Week 2 Discussions! Let’s begin by discussing when job order costing systems would be more appropriate than a process costing system.

I am looking for a minimum of 3 posts to this thread during the week. Remember, your posts need to be on 3 different days. I’m looking for comprehensive posts that show me you understand the material (s/b more than just a couple of sentences!). You must begin posting by Wednesday in this thread area.

When posting in my class, do NOT repeat what someone else has already stated. Expand on what others have already stated, provide examples, find something on the internet related to our topic (don’t just provide a link! Provide us with some commentary about the link and what it tells us), provide any relevant experiences you may have with the topic, etc. I am looking for more than 2 or 3 sentences in your posts!

DeVry ACCT 505 Week 2 Discussion 2 Latest

Work Out Room (graded)

I will be posting problems for us to work on throughout the week in this thread area. (Please post only 3 times in this thread area with each post on a different day…Thanks!)

RULES FOR THE WORK OUT ROOM: We will have a Work Out Room each week. We will be going over some of the problems in the text along with other problems that I feel will enhance your understanding of the materials. I want everyone to post 3 times (each post on a different day) during the week in this thread area. (Please post only 3 quality posts to this thread) This week we will start out with some problems from chapter 2.  I will be posting problems that we will work on each day. If a problem has multiple section, do only one part (this gives other a chance also). If someone else has already answered a problem but you disagree with their answer, tell us what you think the answer should be. If someone has answered the problem and you agree, move on to another problem (don’t repeat!!! – I don’t give credit for repeating). If all of the problems have been answered, wait until the next day for a new problem. I try to post new problems each day. If you have any questions, please let me know!!!

DeVry ACCT 505 Week 3 Discussion 1 Latest

Cost-Volume-Profit (CVP) Concepts (graded)

Welcome to our Week 3 Discussions! To get us started, let’s discuss how CVP analysis is used in managerial accounting decision-making.

I am looking for a minimum of 3 posts to this thread during the week. Remember, your posts need to be on 3 different days. I’m looking for comprehensive posts that show me you understand the material (s/b more than just a couple of sentences!). You must begin posting by Wednesday in this thread area.

When posting in my class, do NOT repeat what someone else has already stated. Expand on what others have already stated, provide examples, find something on the internet related to our topic (don’t just provide a link! Provide us with some commentary about the link and what it tells us), provide any relevant experiences you may have with the topic, etc. I am looking for more than 2 or 3 sentences in your posts!

DeVry ACCT 505 Week 3 Discussion 2 Latest

Work Out Room (graded)

I will be posting problems for us to work on throughout the week in this thread area. (Please post only 3 times in this thread area with each post on a different day…Thanks!)

RULES FOR THE WORK OUT ROOM: We will have a Work Out Room each week. We will be going over some of the problems in the text along with other problems that I feel will enhance your understanding of the materials. I want everyone to post 3 times (each post on a different day) during the week in this thread area. (Please post only 3 quality posts to this thread) This week we will start out with some problems from chapter 2.  I will be posting problems that we will work on each day. If a problem has multiple section, do only one part (this gives other a chance also). If someone else has already answered a problem but you disagree with their answer, tell us what you think the answer should be. If someone has answered the problem and you agree, move on to another problem (don’t repeat!!! – I don’t give credit for repeating). If all of the problems have been answered, wait until the next day for a new problem. I try to post new problems each day. If you have any questions, please let me know!!!

DeVry ACCT 505 Week 4 Discussion 1 Latest

Budgeting Case Study (graded)

Let’s start the week by discussing Case 8-30 on pages 389 and 390. First, let’s discuss how the budgeting process as employed by Ferguson & Son Manufacturing Company contributes to the failure to achieve the budgeted costs. What could they do differently that might lead to better budget outcomes?

I am looking for a minimum of 3 posts to this thread during the week. Remember, your posts need to be on 3 different days. I’m looking for comprehensive posts that show me you understand the material (s/b more than just a couple of sentences!). You must begin posting by Wednesday in this thread area.

When posting in my class, do NOT repeat what someone else has already stated. Expand on what others have already stated, provide examples, find something on the internet related to our topic (don’t just provide a link! Provide us with some commentary about the link and what it tells us), provide any relevant experiences you may have with the topic, etc. I am looking for more than 2 or 3 sentences in your posts!

DeVry ACCT 505 Week 4 Discussion 2 Latest

Work Out Room (graded)

I will be posting problems for us to work on throughout the week in this thread area. (Please post only 3 times in this thread area with each post on a different day…Thanks!)

RULES FOR THE WORK OUT ROOM: We will have a Work Out Room each week. We will be going over some of the problems in the text along with other problems that I feel will enhance your understanding of the materials. I want everyone to post 3 times (each post on a different day) during the week in this thread area. (Please post only 3 quality posts to this thread) This week we will start out with some problems from chapter 2.  I will be posting problems that we will work on each day. If a problem has multiple section, do only one part (this gives other a chance also). If someone else has already answered a problem but you disagree with their answer, tell us what you think the answer should be. If someone has answered the problem and you agree, move on to another problem (don’t repeat!!! – I don’t give credit for repeating). If all of the problems have been answered, wait until the next day for a new problem. I try to post new problems each day. If you have any questions, please let me know!!!

DeVry ACCT 505 Week 5 Discussion 1 Latest

Standard Costs, Variances, and Flexible Budgets (graded)

What are standard costs? Is a standard different from a budget? What happens if they are set too high or too low?

I am looking for a minimum of 3 posts to this thread during the week. Remember, your posts need to be on 3 different days. I’m looking for comprehensive posts that show me you understand the material (s/b more than just a couple of sentences!). You must begin posting by Wednesday in this thread area.

When posting in my class, do NOT repeat what someone else has already stated. Expand on what others have already stated, provide examples, find something on the internet related to our topic (don’t just provide a link! Provide us with some commentary about the link and what it tells us), provide any relevant experiences you may have with the topic, etc. I am looking for more than 2 or 3 sentences in your posts!

DeVry ACCT 505 Week 5 Discussion 2 Latest

Work Out Room (graded)

I will be posting problems for us to work on throughout the week in this thread area. (Please post only 3 times in this thread area with each post on a different day…Thanks!)

RULES FOR THE WORK OUT ROOM: We will have a Work Out Room each week. We will be going over some of the problems in the text along with other problems that I feel will enhance your understanding of the materials. I want everyone to post 3 times (each post on a different day) during the week in this thread area. (Please post only 3 quality posts to this thread) This week we will start out with some problems from chapter 2.  I will be posting problems that we will work on each day. If a problem has multiple section, do only one part (this gives other a chance also). If someone else has already answered a problem but you disagree with their answer, tell us what you think the answer should be. If someone has answered the problem and you agree, move on to another problem (don’t repeat!!! – I don’t give credit for repeating). If all of the problems have been answered, wait until the next day for a new problem. I try to post new problems each day. If you have any questions, please let me know!!!

DeVry ACCT 505 Week 6 Discussion 1 Latest

Segment Reporting and Relevant Costs (graded)

Welcome to our Week 6 discussion thread!

To begin, please read Case 12-30 on page 578. Which costs are relevant in the decision to shut down the Clayton facility? Then, let’s answer the questions at the end of the case. Also, value-added comments, points, and experiences are welcome and encouraged.

I am looking for a minimum of 3 posts to this thread during the week. Remember, your posts need to be on 3 different days. I’m looking for comprehensive posts that show me you understand the material (s/b more than just a couple of sentences!). You must begin posting by Wednesday in this thread area.

When posting in my class, do NOT repeat what someone else has already stated. Expand on what others have already stated, provide examples, find something on the internet related to our topic (don’t just provide a link! Provide us with some commentary about the link and what it tells us), provide any relevant experiences you may have with the topic, etc. I am looking for more than 2 or 3 sentences in your posts!

DeVry ACCT 505 Week 6 Discussion 2 Latest

Work Out Room (graded)

I will be posting problems for us to work on throughout the week in this thread area. (Please post only 3 times in this thread area with each post on a different day…Thanks!)

RULES FOR THE WORK OUT ROOM: We will have a Work Out Room each week. We will be going over some of the problems in the text along with other problems that I feel will enhance your understanding of the materials. I want everyone to post 3 times (each post on a different day) during the week in this thread area. (Please post only 3 quality posts to this thread) This week we will start out with some problems from chapter 2.  I will be posting problems that we will work on each day. If a problem has multiple section, do only one part (this gives other a chance also). If someone else has already answered a problem but you disagree with their answer, tell us what you think the answer should be. If someone has answered the problem and you agree, move on to another problem (don’t repeat!!! – I don’t give credit for repeating). If all of the problems have been answered, wait until the next day for a new problem. I try to post new problems each day. If you have any questions, please let me know!!!

DeVry ACCT 505 Week 7 Discussion 1 Latest

Capital Budgeting (graded)

Welcome to Week 7 Discussions! Let’s start with defining capital budgeting and decision making. What is capital budgeting? What are the differences between screening decisions and preference decisions? Do you ever have occasion to make capital budgeting decisions in your personal life?

I am looking for a minimum of 3 posts to this thread during the week. Remember, your posts need to be on 3 different days. I’m looking for comprehensive posts that show me you understand the material (s/b more than just a couple of sentences!)

When posting in my class, do NOT repeat what someone else has already stated. Expand on what others have already stated, provide examples, find something on the internet related to our topic (don’t just provide a link! Provide us with some commentary about the link and what it tells us), provide any relevant experiences you may have with the topic, etc. I am looking for more than 2 or 3 sentences in your posts!

DeVry ACCT 505 Week 7 Discussion 2 Latest

Work Out Room (graded)

I will be posting problems for us to work on throughout the week in this thread area. (Please post only 3 times in this thread area with each post on a different day…Thanks!)

RULES FOR THE WORK OUT ROOM: We will have a Work Out Room each week. We will be going over some of the problems in the text along with other problems that I feel will enhance your understanding of the materials. I want everyone to post 3 times (each post on a different day) during the week in this thread area. (Please post only 3 quality posts to this thread) This week we will start out with some problems from chapter 2.  I will be posting problems that we will work on each day. If a problem has multiple section, do only one part (this gives other a chance also). If someone else has already answered a problem but you disagree with their answer, tell us what you think the answer should be. If someone has answered the problem and you agree, move on to another problem (don’t repeat!!! – I don’t give credit for repeating). If all of the problems have been answered, wait until the next day for a new problem. I try to post new problems each day. If you have any questions, please let me know!!!

DeVry ACCT 505 Week 1 Practice Homework Assignment Latest

Activities are located in your textbook and solutions are located in Doc Sharing.

Exercise 2-5
Exercise 2-12
Exercise 3-6
Exercise 3-14

DeVry ACCT 505 Week 2 Practice Homework Assignment Latest

Activities are located in your textbook and solutions are located in Doc Sharing.

Exercise 3-20
Problem 3-22
Exercise 4-2
Exercise 4A-1

DeVry ACCT 505 Week 3 Practice Homework Assignment Latest

Activities are located in your textbook and solutions are located in Doc Sharing.

Exercise 5-6
Problem 5-22
Problem 5-27
Exercise 6-7
Problem 6-18

DeVry ACCT 505 Week 4 Practice Homework Assignment Latest

Activities are located in your textbook and solutions are located in Doc Sharing.

Exercise 7-3
Exercise 7-6
Exercise 7-15
Problem 8-21
Problem 8-27

DeVry ACCT 505 Week 5 Practice Homework Assignment Latest

Exercise 9-8
Problem 9-20
Problem 10-14
Problem 10-15

DeVry ACCT 505 Week 6 Practice Homework Assignment Latest

Activities are located in your textbook and solutions are located in Doc Sharing.

Exercise 11-4
Exercise 11-12
Exercise 11A-1
Exercise 12-2
Exercise 12-3
Exercise 12-8

DeVry ACCT 505 Week 7 Practice Homework Assignment Latest

Activities are located in your textbook and solutions are located in Doc Sharing.

Problem 13-17
Problem 13-19
Problem 13-20
Problem 13-21
Problem 13-25

DeVry ACCT 505 Week 2 Quiz 1 Latest

Page 1

Question 1.Question: (TCO B) Computing unit product costs involves averaging in

Job-Order Costing Process Costing
A Yes No
B No Yes
C Yes Yes
D No No
  • Choice A
  • Choice B
  • Choice C
  • Choice D

Question 2.Question: (TCO B) Process costing would be appropriate for each of the following except

  • oil refining.
  • pharmaceutical production.
  • grain milling.
  • custom homebuilding.

Question 3. Question: (TCO B) Luft Company uses the weighted-average method in its process costing system. Operating data for the first processing department for the month of June appear below.

 

Units Percent Complete With Respect to Conversion
Beginning work in process inventory 11,000 90%
Started in production during June 58,000
Ending work in process inventory 17,000 10%

According to the company’s records, the conversion cost in beginning work in process inventory was $79,893 at the beginning of June. Additional conversion costs of $343,830 were incurred in the department during the month.

What was the cost per equivalent unit for conversion costs for the month? (Round to three decimal places.)

  • $7.891
  • $8.070
  • $5.928
  • $4.584

Question 4.Question: (TCO B) The journal entry to record the incurrence of indirect supervisory labor costs is which of the following?

  • Wages Payable                      XXX

Manufacturing Overhead       XXX

  • Work In Process                    XXX

Salaries Payable                     XXX

  • Manufacturing Overhead      XXX

Salaries Payable                     XXX

  • Wages Payable                      XXX

Work in Process                     XXX

Question 5. Question: (TCO B) Stickles Corporation incurred $79,000 of actual manufacturing overhead costs during August. During the same period, the manufacturing overhead applied to work in process was $75,000. The journal entry to record the incurrence of the actual manufacturing overhead costs would include a

  • credit to manufacturing overhead of $79,000.
  • debit to manufacturing overhead of $79,000.
  • credit to work in process of $75,000.
  • debit to work in process of $75,000.

Question 6.Question: (TCO B) During February, Degan Inc. transferred $60,000 from work in process to finished goods and recorded a cost of goods sold of $65,000. The journal entries to record these transactions would include a

  • debit to finished goods of $65,000.
  • credit to cost of goods sold of $65,000.
  • credit to work in process of $60,000.
  • credit to finished goods of $60,000.

Page 2

Question 1.Question :(TCO B) Some companies use process costing and some use job-order costing. Which method a company uses depends on its industry. Several companies in different industries are listed below.

Question 2. Question: (TCO B) Job 484 was recently completed. The following data have been recorded on its job cost sheet.

Direct materials           $64,850

Direct labor hours       1,500 labor hours

Direct labor wage rate $12 per labor hour

Number of units completed    3,500 units

The company applies manufacturing overhead on the basis of direct labor hours. The predetermined overhead rate is $22 per direct labor hour.

Compute the unit product cost that would appear on the job cost sheet for this job.

Question 3. Question: (TCO B) Auger Inc. uses the weighted average method in its process costing system. The following data concern the operations of the company’s first processing department for a recent month.

Work in process, beginning

Units in process                                                          700

Percent complete with respect to materials               80%

Percent complete with respect to conversion                        40%

Costs in the beginning inventory:

Materials cost                                                              $1,904

Conversion cost                                                          $8,624

Units started into production during the month           29,000

Units completed and transferred out                          28,800

Costs added to production during the month:

Materials cost                                                              $104,044

Conversion cost                                                          $875,266

Work in process, ending:

Units in process                                                          900

Percent complete with respect to materials               70%

Percent complete with respect to conversion                        20%

Required:

i. Determine the equivalent units of production.

ii. Determine the costs per equivalent unit.

iii. Determine the cost of ending work in process inventory.

iv. Determine the cost of the units transferred to the next department.

Question 4. Question: (TCO A) Honeysuckle Corporation has provided the following data for the month of January.

Inventories Beginning Ending
Raw materials $40,000 $23,000
Work in process $9,000 $13,000
Finished goods $52,000 $45,000

Additional Information

Raw material purchases $68,000
Direct labor costs $81,000
Manufacturing overhead cost incurred $47,000
Indirect materials included in manufacturing overhead costs incurred $8,000
Manufacturing overhead cost applied to work in process $39,000

Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold in good form.

DeVry ACCT 505 Week 6 Quiz 2 Latest

Page: 1

Question 1. Question: (TCO E) Setting up equipment is a (n)

  • Unit-level activity.
  • Product-level activity.
  • Batch-level activity.
  • Organization-sustaining activity.

Question 2. Question: (TCO G) Given the following data, what would ROI be?

Sales                                       $60,000

Net operating income             $12,000

Contribution margin                $20,000

Average operating assets       $50,000

Stockholder’s equity               $15,000

  • 10.0%
  • 20.0%
  • 16.5%
  • 24.0%

Question 3. Question: (TCO H) For which of the following decisions are sunk costs relevant?

  • The decision to keep an old machine or buy a new one.
  • The decision to sell a product at the split-off point or after further processing.
  • The decision to accept or reject a special order price.
  • Sunk costs are relevant for all of the decisions above.
  • Sunk costs are irrelevant for all of the decisions above.

Page: 2

Question 1. Question: (TCO H) Seabuck Corporation has two major business segments—Apparel and Accessories. Data concerning those segments for June appear below.

Sales revenues, Apparel                                             $800,000

Variable expenses, Apparel                                        $406,000

Traceable fixed expenses, Apparel                            $98,000

Sales revenues, Accessories                                     $820,000

Variable expenses, Accessories                                 $312,000

Traceable fixed expenses, Accessories                     $107,000

Common fixed expenses totaled $325,000 and were allocated as follows: $150,000 to the Apparel business segment and $175,000 to the Accessories business segment.

Required:

Prepare a segmented income statement in the contribution format for the company. Omit percentages; show only dollar amounts.

Question 2. Question: (TCO G) Weski Corporation had net operating income of $300,000 and average operating assets of $1,200,000. The company requires a return on investment of 18%.

Required:

i. Calculate the company’s current return on investment and residual income.

ii. The company is investigating an investment of $500,000 in a project that will generate annual net operating income of $105,000. What is the ROI of the project? What is the residual income of the project? Should the company invest in this project?

Question 3. Question: (TCO H) Tilland Corporation is considering dropping product P33U. Data from the company’s accounting system appear below.

Sales $390,000
Variable Expenses $172,000
Fixed Manufacturing Expenses $218,000
Fixed Selling and Administrative Expenses $94,000

All fixed expenses of the company are fully allocated to products in the company’s accounting system. Further investigation has revealed that $35,000 of the fixed manufacturing expenses and $20,000 of the fixed selling and administrative expenses are avoidable if product P33U is discontinued.

Required:

i. According to the company’s accounting system, what is the net operating income earned by product P33U? Show your work!

ii. What would be the effect on the company’s overall net operating income of dropping product P33U? Should the product be dropped? Show your work!

Question 4. Question: (TCO H) James Company makes 30,000 units per year of a part it uses in the products it manufactures. The unit product cost of this part is computed as follows

Direct Materials $14.00
Direct Labor $20.50
Variable Manufacturing Overhead $7.50
Fixed Manufacturing Overhead $15.75
Unit Product Cost $57.75

An outside supplier has offered to sell the company all of the parts needed for $50.00 a unit. If the company accepts this offer, the facilities now being used to make the part could be used to make more units of a product that is in high demand. The additional contribution margin on this other product would be $90,000 per year.

If the part were purchased from the outside supplier, all of the direct labor cost of the part would be avoided. However, $5.75 of the fixed manufacturing overhead cost being applied to the part would continue even if the part were purchased from the outside supplier. This fixed manufacturing overhead cost would be applied to the company’s remaining products.

Required:

i. How much of the unit product cost of $57.75 is relevant in the decision of whether to make or buy the part?

ii. Should James Company make or buy the part? (Provide numerical support for your answer)

Question 5. Question: (TCO H) Palmer Company manufactures and sells trophies for winners of athletic and other events. Its manufacturing plant has the capacity to produce 22,000 trophies each month; current monthly production is 20,900 trophies. The company normally charges $62 per trophy. Cost data for the current level of production are shown below.

Variable Costs
Direct Materials $541,880
Direct Labor $193,800
Selling and Administrative $41,100
Fixed Costs
Manufacturing $250,000
Selling and Administrative $133,000

The company has just received a special one-time order for 800 trophies at $31 each. For this particular order, no variable selling and administrative costs would be incurred. This order would also have no effect on fixed costs.

Required:

Should the company accept this special order? Provide numerical support for your decision.

DeVry ACCT 505 Week 4 Midterm Exam Latest

Page: 1

Question 1.Question :(TCO A) The variable portion of advertising costs is a

  • Conversion YES… Period NO.
  • Conversion YES …. Period YES.
  • Conversion NO…. Period NO.
  • Conversion NO…. Period YES.

Question 2. Question: (TCO A) Total fixed costs

  • will increase with increases in activity.
  • will decrease with increases in activity.
  • are not affected by activity.
  • should be ignored in making decisions because they can never change.

Question 3. Question: (TCO A) Property taxes on a company’s factory building would be classified as a(n)

  • variable cost.
  • opportunity cost.
  • period cost.
  • product cost.

Question 4. Question: (TCO C) When the activity level is expected to decrease within the relevant range, what effects would be anticipated with respect to each of the following?

Fixed cost per unit                              Variable cost per unit

  • Increase                                              No change
  • Increase                                              Increase
  • Decrease                                            No change
  • No change                                          Increase

Question 5. Question: (TCO B) When manufacturing overhead is applied to production, it is added to

the cost of goods sold account.

the raw materials account.

the direct labor account.

None of the above

Question 6. Question: (TCO B) A job-order cost system is employed in those situations when

  • many different products, jobs, or batches of production are being produced each period.
  • manufacturing involves a single, homogeneous product that flows evenly through the production process on a continuous basis.
  • the product moves from department to department before being completed.
  • the unit cost of production is computed by dividing the total production costs by the number of units produced.

Question 7. Question: (TCO B) The FIFO method only provides a major advantage over the weighted-average method in that

  • the calculation of equivalent units is less complex under the FIFO method.
  • the FIFO method treats units in the beginning inventory as if they were started and completed during the current period.
  • the FIFO method provides measurements of work done during the current period.
  • the weighted-average method ignores units in the beginning and ending work-in-process inventories.

Question 8. Question: (TCO C) The contribution margin ratio always increases when the

  • fixed expenses increase.
  • fixed expenses decrease.
  • variable expenses as a percentage of net sales increase.
  • variable expenses as a percentage of net sales decrease.

Question 9. Question: (TCO C) The unit sales needed to attain the target profit is found by

  • dividing fixed costs by the contribution margin.
  • adding variable expenses to fixed expenses and dividing the total by the contribution margin.
  • adding target profit to the fixed expenses and then dividing the total by the contribution margin.
  • adding target profit to the fixed expenses and then dividing the total by the unit contribution margin.

Question 10. Question: (TCO D) Under variable costing,

  • inventory costs will be lower than under absorption costing.
  • inventory costs will be higher than under absorption costing.
  • net operating income will always be lower than under absorption costing.
  • net operating income will always be higher than under absorption costing.

 

Page 2

Question 1. Question: (TCO A) The following data (in thousands of dollars) have been taken from the accounting records of Larden Corporation for the just-completed year.

Sales $950
Purchases of raw materials $170
Direct labor $225
Manufacturing overhead $220
Administrative expenses $180
Selling expenses $140
Raw materials inventory, beginning $90
Raw materials inventory, ending $80
Work-in-process inventory, beginning $30
Work-in-process inventory, ending $20
Finished goods inventory, beginning $100
Finished goods inventory, ending $70

Prepare a Schedule of Cost of Goods Manufactured statement in the text box below.

Question 2.Question: (TCO B) The Alabama Company manufactures a product that goes through three processing departments. Information relating to activity in the first department during June is given below.

Percentage Completed
Units Materials Conversion
Work in process, June 1 75,000 65% 45%
Work in process, Jun 30 72,500 75% 70%

The department started 237,500 units into production during the month and transferred 240,000 completed units to the next department.

Required: Compute the equivalent units of production for the first department for June, assuming that the company uses the weighted-average method of accounting for units and costs.

Question 3. Question: (TCO C) A tile manufacturer has supplied the following data.

Boxes of tile produced and sold 625,000
Sales revenue $2,975,000
Variable manufacturing expense $1,720,000
Fixed manufacturing expense $790,000
Variable selling and admin expense $152,000
Fixed selling and admin expense $133,000
Net operating income $180,000

Required:

Calculate the company’s unit contribution margin.

Calculate the company’s contribution margin ratio.

If the company increases its unit sales volume by 5% without increasing its fixed expenses, what would the company’s net operating income be?

Question 4. Question: (TCO D) The Hampton Company produces and sells a single product. The following data refer to the year just completed.

Selling price $450
Units in beginning inventory 0
Units produced 25,000
Units sold 22,000
Variable costs per unit:
Direct materials $150
Direct labor $75
Variable manufacturing overhead $25
Variable selling and admin $15
Fixed costs:
Fixed manufacturing overhead $275,000
Fixed selling and admin $200,000

Required:

Compute the cost of a single unit of product under both the absorption costing and variable costing approaches.

Prepare an income statement for the year using absorption costing.

Prepare an income statement for the year using variable costing.

DeVry ACCT 505 Week 5 Course Project 1 Latest

Instructions

You have just been contracted as a budget consultant by LBJ Company, a distributor of bracelets to various retail outlets across the country. The company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash.

You have decided to prepare a cash budget for the upcoming fourth quarter in order to show management the benefits that can be gained from proper cash planning.  You have worked with accounting and other areas to gather the information assembled below.

The company sells many styles of bracelets, but all are sold for the same $10 price.  Actual sales of bracelets for the last three months and budgeted sales for the next six months follow:

July (actual) 20,000
August (actual) 26,000
September (actual) 40,000
October (budget) 70,000
November (budget) 110,000
December (budget) 60,000
January (budget) 30,000
February (budget) 28,000
March (budget) 25,000

The concentration of sales in the fourth quarter is due to the Christmas holiday. Sufficient inventory should be on hand at the end of each month to supply 40% of the bracelets sold in the following month.

Suppliers are paid $4 for each bracelet.  Fifty-percent of a month’s purchases is paid for in the month of purchase; the other 50% is paid for in the following month.  All sales are on credit with no discounts.  The company has found, however, that only 20% of a month’s sales are collected in the month of sale. An additional 70% is collected in the following month, and the remaining 10% is collected in the second month following sale.  Bad debts have been negligible.

Monthly operating expenses for the company are given below:

Variable expenses:

Sales commissions                             4% of sales

Fixed expenses:

Advertising                                          $220,000

Rent                                                    $20,000

Salaries                                               $110,000

Utilities                                                 $10,000

Insurance                                            $5,000

Depreciation                                        $18,000

Insurance is paid on an annual basis, in January of each year.

The company plans to purchase $22,000 in new equipment during October and $50,000 in new equipment during November; both purchases will be for cash. The company declares dividends of $20,000 each quarter, payable in the first month of the following quarter.

Other relevant data is given below:

Cash balance as of September 30                             $74,000

Inventory balance as of September 30                      $112,000

Merchandise purchases for September                     $200,000

The company maintains a minimum cash balance of at least $50,000 at the end of each month.  All borrowing is done at the beginning of a month; any repayments are made at the end of a month.

The company has an agreement with a bank that allows the company to borrow the exact amount needed at the beginning of each month. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. At the end of the quarter, the company will pay the bank all of the accrued interest on the loan and as much of the loan as possible while still retaining at least $50,000 in cash.

Required:

Prepare a cash budget for the three-month period ending December 31. Include the following detailed budgets:

1.

a. A sales budget, by month and in total.

b. A schedule of expected cash collections from sales, by month and in total.

c. A merchandise purchases budget in units and in dollars. Show the budget by month and in total.

d. A schedule of expected cash disbursements for merchandise purchases, by month and in total.

2.

A cash budget. Show the budget by month and in total. Determine any borrowing that would be needed to maintain the minimum cash balance of $50,000.

DeVry ACCT 505 Week 7 Course Project 2 Latest

Capital Budgeting Decision

Hampton Company: The production department has been investigating possible ways to trim total production costs. One possibility currently being examined is to make the cans instead of purchasing them. The equipment needed would cost $1,000,000, with a disposal value of $200,000, and would be able to produce 27,500,000 cans over the life of the machinery. The production department estimates that approximately 5,500,000 cans would be needed for each of the next 5 years.

The company would hire six new employees. These six individuals would be full-time employees working 2,000 hours per year and earning $15.00 per hour. They would also receive the same benefits as other production employees, 15% of wages in addition to $2,000 of health benefits.

It is estimated that the raw materials will cost 30¢ per can and that other variable costs would be 10¢ per can. Because there is currently unused space in the factory, no additional fixed costs would be incurred if this proposal is accepted.

It is expected that cans would cost 50¢ each if purchased from the current supplier. The company’s minimum rate of return (hurdle rate) has been determined to be 11% for all new projects, and the current tax rate of 35% is anticipated to remain unchanged. The pricing for the company’s products as well as number of units sold will not be affected by this decision. The unit-of-production depreciation method would be used if the new equipment is purchased.

Required: 

  1. Based on the above information and using Excel, calculate the following items for this proposed equipment purchase.
    • Annual cash flows over the expected life of the equipment
    • Payback period
    • Simple rate of return
    • Net present value
    • Internal rate of return

The check figure for the total annual after-tax cash flows is $271,150.

  1. Would you recommend the acceptance of this proposal? Why or why not? Prepare a short, double-spaced paper in MS Word elaborating on and supporting your answer.

 

DeVry ACCT 505 Full Course Latest

DeVry ACCT 505 Full Course Latest

ABS,AC,ACC,ACCT,ACT,ADJ,AH,AJS,AMP,ANT,ART,BA,BAM,BBA,BCOM,BIO,BIOS,BIS,BMGT,BPA,BSA,BSE,BSHS,BSOP,BUS,BUSN,CARD,CEIS,CHEM,CIS,CIT,CJA,CJS,CMC,CMGT,COLL,COM,COMM,COMP,CPN1,CRJ,CRMJ,CRT,CS,CWV,DBM,EBUS,ECE,ECET,ECN,ECO, ECOM,ECON,ECT,EDU,EED,EMM,ENG,ENGL,ENT,ENTR,ESE,ETH,ETHC,FIN,FIS,FP,GB,GBM,GED,GEN,GENERALQUESTIONS,GLG,GM,GSCM,HCA,HCS,HHS,HIS,HIST,HLT,HOSP,HPE,HRM,HSA,HSM,HTM,HTT,HUM,HUMN,IFSM,INFT,INT,IS,ISCOM,IT,ITB,JADM,JUS,JWI, LAS,LAW,LAWS,LDR,LEG,LIT,LTC,MA,MAT,MATH,MGMT,MGT,MIS,MKT,MKTG,MTH,NETW,NR,NRS,NSCI,NTC,NUR,NURS,OI,OMM,OPS,ORG,PA,PAD,PCN,PHI,PHL,PHYS,PM,POL,POLI,POS,PPA,PRG,PROJ,PSC,PSY,PSYC,PSYCH,QNT,QRB,RDG,REL,RELI,RES,SBE,SCI,SEC,SOC,SOCS,SPE,SRM,STAT,STR,SYM,TCH,UNV,WEB,XACC,XBIS,XCOM,XECO,XMGT