DEVRY ACCT346 FULL COURSE LATEST MARCH 2015[ ALL DISCUSSIONS ALL HOMEWORK MIDTERM AND FINAL ] Question # 00065375 Posted By: vikas Updated on: 04/28/2015 01:12 AM Due on: 05/12/2015 Subject Accounting Topic Accounting Tutorials: 1 See full Answer Question Discussion 1Ethics and Ethical Behaviour (graded)The Sarbanes-Oxley Act of 2002 (SOX) has emphasized the importance of ethical ehaviour and codes of conduct. Discuss the costs and benefits of the ethical environment. If a poor ethical environment results in costs to an organization, what are they? Conversely, what are the benefits of a good ethical environment?Discussion 2Managerial and Financial Accounting (graded)Flexibility, timeliness, and forward looking is said to be the prominent trait of modern management accounting, whereas standardization and consistency describe financial accounting. Explain why the focus on these two accounting systems differs.Week 2Discussion1: Job Order and Process Costing Systems -The job cost sheet is used to accumulate the three product costs: direct material, direct labor, and factory overhead. Discuss the source documents for determining these amounts (that is, where do we get these numbers, and how we arrive at the overhead?). Why is overhead the most difficult to assign?Job Order and Process Costing Systems - DiscussionDescribe how the process costing system accumulates and assigns costs by comparing and contrasting to the job order costing system.Week 3Discussion 1 CVP Analysis and Variable Costing –Discuss the basic assumptions of CVP analysis and how we can use CVP analysis as mangers in making decisions.Discussion 2 CVP Analysis and Variable Costing –Discuss the difference between variable costing and full costing. Why would income computed under full costing exceed income computed under variable costing if production exceeds sales?Week 4Discussion 1 Activity-Based Costing and Incremental Analysis –How does activity-based costing differ from the traditional costing approach? When would it give more accurate costs than traditional costing systems?Discussion 2 Activity-Based Costing and Incremental Analysis –Only those costs that change need be included in the decision making process. Evaluate this statement and discuss its merits or shortcomings.Week 5Discussion1 Pricing and Capital Investment Decisions -Pricing Techniques (graded)Compare target costing and cost-plus pricing. When is each the most appropriate method to use? Provide an example of each.Discussion 2 Pricing and Capital Investment Decisions -Capital Budgeting Techniques (graded)Suppose a company has 5 different capital budgeting projects from which to choose, but has constrained funds and cannot implement all of the projects. Explain why comparing the projects' NPVs is better than comparing their IRRs.Week 6Discussion1 Budgeting and Standard Costing -Budgeting (graded)How does a company effectively use budgets in the planning and control process?Discussion 2 Budgeting and Standard Costing -Standard Costs and Variance Analysis (graded)What role do standard costs play in controlling the operations of a business?Week 7Discussion 1-Evaluating Management PerformanceResponsibility Centers (graded)Compare and contrast the three types of responsibility centers. What is the best way to evaluate a manager's performance in each type of center?Discussion 2- Evaluating Management PerformanceFinancial Statement Analysis (graded)Why do managers analyze financial statements? What are they looking for?DeVry UniversityACCT346 Weekly AssignmentWeek 1Directions: Your assignment this week is to answer the four questions below. Please note that Question 4 contains multiple parts. Please show your work for full credit on Questions 4b - 4e.1. Identify whether each of the items below is a Product Cost or Period Cost: (1/2 point each, total 5 points)Factory insuranceProductInterest on bank loanEggs, salt, water used for bakingDepreciation on bake ovensPaper wrappers for breadDelivery truck costsAdvertising costsFactory supervisor salariesSales CommissionsFlour used in baking bread2. Identify whether each of the items below is a Direct Cost or Indirect Cost: (1/2 point each, total 5 points)Factory insuranceIndirectBaker's wagesEggs used for bakingDepreciation on bake ovensPaper wrappers for breadCleaning materials for bake ovensUtilities used in factoryFactory supervisor salariesSmall amount of salt usedFlour used in baking bread3. Identify whether each of the below is a Fixed Cost or Variable Cost: (1/2 point each, total 5 points)Shipping costs for breadVariableCost of fuel for delivery truckFactory rentFactory insuranceMaintenance on delivery truckSales commissionsHourly wages paid to baker's assistantOven depreciationCost of fruit for cake toppingFactory utilities4. Classify each as direct material, direct labor, indirect labor, indirect labor, other manufacturing overhead or period cost, and then answer the 5 questions below:4a. Classify each cost (the first one is done for you): (5 points total)An airline manufacturer incurred the following costs last month (in thousands of dollars):Direct MaterialDirect LaborIndirect MaterialIndirect LaborOther Manufacturing OverheadPeriod Costa. Depreciation on forklifts ...........................................................................$60$60b. Property tax on corporate marketing office .............................................$30c. Cost of warranty repairs ............................................................................$220d. Factory janitors’ wages .............................................................................$10e. Cost of designing new plant layout ..........................................................$190f. Machine operators’ health insurance .......................................................$40g. Airplane seats ...........................................................................................$270h. Depreciation on administrative offices .....................................................$70i. Assembly workers’ wages .........................................................................$670j. Plant utilities .............................................................................................$110k. Production supervisors’ salaries ................................................................$160l. Jet engines ................................................................................................$1,100m. Machine lubricants ....................................................................................$20Then, answer the below questions:4b. How much are total manufacturing overhead costs? (5 points)4c. How much are total inventoriable product costs? (5 points)4d. How much are total prime costs? (5 points)4e. How much are total conversion costs? (5 points)DeVry UniversityACCT346 Weekly AssignmentWeek 2Directions: Your assignment this week is to answer the three questions below. Please note that Question #3 has 2 parts, Part A and Part B. Please show your work for full credit and use the box provided. Please add more rows or columns to the box if needed.1. Biltz Company uses a predetermined overhead rate based on direct labor hours to allocate manufacturing overhead to jobs. During the year, the company actually incurred manufacturing overhead costs of $582,000 and 135,000 direct labor hours were worked. The company estimated that it would incur $525,000 of manufacturing overhead during the year and that 150,000 direct labor hours would be worked.By how much was manufacturing overhead overallocated or underallocated for the year?2. The following account balances at the beginning of January were selected from the general ledger of Ocean City Manufacturing Company:Work-in-process inventory $0Raw materials inventory $28,000Finished goods inventory $40,000Additional data:1) Actual manufacturing overhead for January amounted to $62,000.2) Total direct labor cost for January was $63,000.3) The predetermined manufacturing overhead rate is based on direct labor cost. The budget for the year called for $250,000 of direct labor cost and $350,000 of manufacturing overhead costs.4) The only job unfinished on January 31 was Job No. 151, for which total direct labor charges were $5,200 (800 direct labor hours) and total direct material charges were $14,000.5) Cost of direct materials placed in production during January totaled $123,000. There were no indirect material requisitions during January.6) January 31 balance in raw materials inventory was $35,000.7) Finished goods inventory balance on January 31 was $34,500.What is the cost of goods manufactured for January? Show your work for full credit.3. Vintage Fun reproduces old-fashioned style roller skates and skateboards. The annual production and sales of roller skates is 950 units, while 1,750 skateboards are produced and sold. The company has traditionally used direct labor hours to allocate its overhead to products. Roller skates require 2.5 direct labor hours per unit, while skateboards require 1.25 direct labor hours per unit. The total estimated overhead for the period is $114,300. The company is looking at the possibility of changing to an activity-based costing system for its products. If the company used an activity-based costing system, it would have the following three activity cost pools:3a. What is the predetermined overhead allocation rate using the traditional costing system?3b. What is the overhead cost per skateboard using an activity-based costing system?DeVry UniversityACCT346 Weekly AssignmentWeek 3Directions: Your assignment this week is to answer the two questions below. Please note that Question #2 has 2 parts, Part A and Part B. Please show your work for full credit and use the box provided. Please add more rows or columns to the box if needed.1. Beginning WIP inventory is 15,500 units, 75% complete for materials. During the month, 90,000 units were started; 87,000 were finished; and ending WIP was 18,500 units that were 50% complete for materials.How many equivalent units should be used to allocate costs for materials? (Assume that the weighted average method is used, not FIFO.)2. During a period, 38,200 units were completed and 4,200 units were in ending WIP inventory. Ending WIP was 75% complete for direct materials and 50% complete for conversion costs.2a. What are the equivalent units for direct materials?2b. What are the equivalent units for conversion costs?DeVry UniversityACCT346 Weekly AssignmentWeek 4Directions: Your assignment this week is to answer the question below which has four parts. Please show your work for full credit and use the boxes provided. Please add more rows or columns to the box if needed.1. MountainAir Company has the following selected data for the past year:Units sold during year 30,000Units produced during year 45,000Units in ending inventory 15,000Variable manufacturing cost per unit $4.50Fixed manufacturing overhead (in total) $20,250Selling price per unit $12.00Variable selling and administrative expense per unit $1.00Fixed selling and administrative expenses (in total) $4,000There were no units in beginning inventory.Required:1a. Prepare an income statement for last year using absorption costing.1b. Calculate the value of the ending inventory using absorption costing.1c. Prepare an income statement for last year using variable costing.1d. Calculate the value of the ending inventory using variable costing.DeVry University$ACCT346 Weekly AssignmentWeek 5Directions: Your assignment this week is to answer the below three questions. Please note that question #1 has 2 parts, part a and part b and question #2 has 3 parts, part a, part b and part c. Please show your work for full credit and use the box provided. Please add more rows or columns to the box if needed.1. Palmer's Gourmet Chocolates produces and sells assorted boxed chocolates. The unit selling price is $50, unit variable costs are $25, and total fixed costs are $2,000.1a. How many boxes of chocolates must Palmer's Gourmet Chocolates sell to breakeven?1b. What are breakeven sales in dollars?2. Extreme Sports received a special order for 1,000 units of its extreme motorbike at a selling price of $250 per motorbike. Extreme Sports has enough extra capacity to accept the order. No additional selling costs will be incurred. Unit costs to make and sell this product are as follows: Direct materials, $100; direct labor, $50; variable manufacturing overhead, $14; fixed manufacturing overhead, $10, and variable selling costs, $2.2a. List the relevant costs.2b. What will be the change in operating income if Extreme Sports accepts the special order?2c. Should Extreme Sports accept the special order? Why or why not?3. Totally Technology manufactures Cameras and Video Recorders. The company's product line income statement follows:Camera Video Recorder TotalSales revenue $300,000 $100,000 $400,000Cost of goods soldVariable $75,000 $49,000 $124,000Fixed $82,000 $28,000 $110,000Total cost of goods sold $157,000 $77,000 $234,000Gross profit $143,000 $23,000 $166,000Marketing and administrative expensesVariable $25,000 $28,000 $53,000Fixed $32,000 $19,000 $51,000Total marketing and administrative expenses $57,000 $47,000 $104,000Operating income (loss) $86,000 (24,000) $62,000Management is considering discontinuing the Video Recorder product line. Accountants for the company estimate that discontinuing the Video Recorder line will decrease fixed cost of goods sold by $10,000 and fixed marketing and administrative expenses by $4,000.Prepare an analysis supporting your opinion about whether or not the Video Recorder product line should be discontinued.DeVry UniversityACCT346 Weekly AssignmentWeek 6Directions: Your assignment this week is to answer the two questions below. Please note that Question #2 has 2 parts, Part A and Part B. Please show your work for full credit and use the box provided. Please add more rows or columns to the box if needed.1. Cave Hardware's forecasted sales for April, May, June, and July are $200,000, $230,000, $190,000, and $240,000, respectively. Sales are 65% cash and 35% credit with all accounts receivables collected in the month following the sale. Cost of goods sold is 75% of sales and ending inventory is maintained at $60,000 plus 10% of the following month's cost of goods sold. All inventory purchases are paid 22% in the month of purchase and 78% in the following month.What are the cash collections budgeted for June?2. Madden Corporation manufactures t-shirts, which is its only product. The standards for t-shirts are as follows:Standard direct labor cost per hour $17Standard direct labor hours per t-shirt 0.6During the month of January, the company produced 1,250 t-shirts. Related production data for the month is as follows:Actual direct labor hours 770Actual direct labor cost incurred $13,0002a. What is the direct labor rate variance for the month? Is it favorable or unfavorable?2b. What is the direct labor efficiency variance for the month? Is it favorable or unfavorable?DeVry UniversityACCT346 Weekly AssignmentWeek 7Directions: Your assignment this week is to answer the four questions below. Please note that Question #1 has 2 parts, Part A and Part B. Please show your work for full credit and use the box provided. Please add more rows or columns to the box if needed.1. Gomez Corporation is considering two alternative investment proposals with the following data:Proposal X Proposal YInvestment $850,000 $468,000Useful life 8 years 8 yearsEstimated annual net $125,000 $78,000cash inflows for 8 yearsResidual value $40,000 $ -Depreciation method Straight-line Straight-lineRequired rate of return 14% 10%1a. How long is the payback period for Proposal X?1b. What is the accounting rate of return for Proposal Y?2. You have been awarded a scholarship that will pay you $500 per semester at the end of each of the next 8 semesters that you earn a GPA of 3.5 or better. You are a very serious student and you anticipate receiving the scholarship every semester. Using a discount rate of 3% per semester, which of the following is the correct calculation for determining the present value of the scholarship? PLEASE STATE WHY YOU CHOSE THE ANSWER THAT YOU DID.A) PV = $500 × 3% × 8B) PV = $500 × (Annuity PV factor, i = 3%, n = 8)C) PV = $500 × (Annuity FV factor, i = 6%, n = 4)D) PV = $1,000 × (PV factor, i = 3%, n = 4)3. Maersk Metal Stamping is analyzing a special investment project. The project will require the purchase of two machines for $30,000 and $8,000 (both machines are required). The total residual value at the end of the project is $1,500. The project will generate cash inflows of $11,000 per year over its 8-year life.If Maersk requires a 6% return, what is the net present value (NPV) of this project? (Use present value tables or Excel.)4. Hincapie Manufacturing is evaluating investing in a new metal stamping machine costing $30,924. Hincapie estimates that it will realize $12,000 in annual cash inflows for each year of the machine's 3-year useful life.Approximately, what is the the internal rate of return (IRR) for the machine? (Use present value tables or Excel.)MIDTERMPage 2Question 1.1.(TCO 1) Which of the following types of costs are conversion costs?(Points : 7)Direct materials and direct laborDirect materials and overheadDirect labor and overheadDirect materials, direct labor, and overheadQuestion 2.2.(TCO 6) In an activity-based costing system, cost reduction is accomplished by identifying and eliminating:All Cost Drivers Non-Value-Adding Activities(Points : 7)No NoYes YesNo YesYes NoQuestion 3.3.(TCO 3) Kerner Manufacturing uses a process cost system to manufacture laptop computers. The following information summarizes operations relating to laptop computer model #KJK20 during the quarter ending March 31:Units Direct LaborWork-in-process inventory, January 1 300 $50,000Started during the quarter 800Completed during the quarter 600Work-in-process inventory, March 31 100Costs added during the quarter $720,000Beginning work-in-process inventory was 50% complete for direct labor costs. Ending work-in-process inventory was 75% complete for direct labor costs. What is the equivalent amount of units of production using the weighted-average unit cost inventory valuation method?(Points : 7)600650725675Question 4.4.(TCO 2) Sweet Co. uses budgeted overhead rates to apply overhead to individual jobs. They use a system based on direct labor hours. Last year, the company made the following estimates for this year.Direct labor costs $48,000,000Factory overhead costs $6,400,000Direct Labor Hours 80,000Machine Hours 110,000(a) What is the budgeted overhead rate for the company?(b) If Job #34567 had the following:Material costs were $500,000;Direct labor costs were $450,000;Direct labor hours were 25,000; andMachine hours were 36,000,then what is the total cost of Job #34567?(Points : 30) Question 5.5.(TCO 3) Adnan Company uses process costing. At the beginning of the month, there were 6,000 units in process, 80% complete with respect to material and 70% complete with respect to conversion costs. 30,000 units were started during the month and 30,000 units were completed. The units in ending Work-In-Process Inventory were 80% complete with respect to material and 20% complete with respect to conversion costs. How many equivalent units will be used in calculating the cost per unit for materials?(Points : 30) Question 6.6.(TCO 6) Handy Display Company manufactures display cases to be sold to retail stores. The cases come in three sizes: large, medium, and small. Currently, Handy Display Company uses a single plant-wide overhead rate to allocate its $3,357,800 of annual manufacturing overhead. Of this amount, $900,000 is associated with the Large Case line, $1,404,480 is associated with the Medium Case line, and $1,350,000 is associated with the Small Case line. Handy Display Company is currently running a total of 39,600 machine hours: 12,000 in the Large Case line, 15,960 in the Medium Case line, and 12,000 in the Small Case line. Handy Display Company uses machine hours as the cost driver for manufacturing overhead costs. Requirement: Calculate the departmental overhead rate for each of the three departments listed.(Points : 30) Question 7.7.(TCO 2)Fred Co. incurred costs of $700,000 for direct materials (raw) purchased. Direct labor was $5,000 and factory overhead was $20,000 for March.Inventories were as follows:Raw materials beginning $6,000; raw materials ending $8,000;Work-in-process beginning $230,000; work-in-process ending $210,000;Finished goods beginning $16,000; finished goods ending $15,500;What is the cost of goods manufactured? Please show your work.(Points : 30) FINALPage 1Question 1.1. (TCO 4) Assumptions underlying cost-volume-profit analysis include all of the following, except: (Points : 5)all costs can be divided into fixed and variable elements.total variable costs are directly proportional to volume over the relevant range.selling prices are to be unchanged.price is the only relevant factor affecting cost.Question 2.2. (TCO 6) Which of the following is true about activity-based costing? (Points : 5)It should not be used with process or job costing.It can be used only with process costing.It can be used only with job costing.It can be used with either process or job costing.Question 3.3. (TCO 2) In a traditional job order cost system, the issue of direct materials to a production department increases: (Points : 5)stores.work in process.factory overhead.finished goods.Question 4.4. (TCO 5) A cost driver is defined as: (Points : 5)the largest cost in a manufacturing process.the significant factor in the development of a new product.an indirect cost that cannot be traced to a particular cost objective but is essential to the business.a causal factor that increases the total cost of a cost objective.Question 5.5. (TCO 8) Wood Co. has considerable excess manufacturing capacity. A special job order's cost sheet includes the following applied manufacturing overhead costs:Fixed costs: 25,000Variable costs: 36,000The fixed costs include a normal $4,500 allocation for in-house design costs, although no in-house design will be done. Instead, the job will require the use of external designers costing $9,250. What is the total amount to be included in the calculation to determine the minimum acceptable price for the job? (Points : 5)$40,500$45,250$61,000$65,750Question 6. 6. (TCO 1) How does managerial and financial accounting differ in terms of the amount of detail presented and nonmonetary and monetary information? (Points : 25)Question 7. 7. (TCO 2) Wolf Co. estimates that its employees will work 500,000 direct labor hours during the coming year. Total overhead costs are estimated to be $9,600,000 and direct labor costs are estimated to be $12,500,000. Direct Labor hours are actually 450,000.If Wolf Co. allocates overhead based on direct labor HOURS, what is the predetermined overhead rate? (Points : 25)Question 1. 1. (TCO 3) The Mixing Department is the third department in the MZS Inc. factory. During January, there were 4,000 units of beginning inventory in the Mixing Department, and 90,000 units were transferred in from the prior process. There were 8,000 units in ending inventory. The transferred-in cost in the beginning inventory was $170,000 and there was $600,000 in transferred-in cost during the month.What is the cost per equivalent unit for transferred-in cost? (Points : 25)Question 2. 2. (TCO 4) Assume that we are manufacturing a product and assume that the sales price per unit is $60 and the variable cost is $20 per unit and the fixed cost is $80,000; a) how many units would we need to sell to break even? b) How many units would we need to sell to earn a profit of $120,000? c) How many units do we need to sell to double that profit to $240,000? D) Why didn't the number of units double from Part B to Part C? (Points : 25)Question 3. 3. (TCO 5) Sivan Co. manufactures and sells one product. For the year, they started with no opening inventory; produced 100,000 units, but only sold 70,000 units. The selling price per each unit is $60.The variable costs per unit were:Direct materials.........................7Direct Labor .............................6Variable manufacturing overhead ....5Variable selling and administrative…6Fixed costs per year:Fixed manufacturing Overhead ................$700,000Fixed Selling and Administrative expenses.. $300,000(a) Prepare the Income Statement using Absorption Costing.(b) Prepare the Income Statement using Variable Costing. (Points : 25)Question 4. 4. (TCO 6) At Long Co. electricity cost starts with a minimum fixed cost, and after that, there is a perfectly variable expense. Using estimated machine hours:Machine hours Cost50,000 $68,00060,000 $80,000What is the a) estimated variable cost per machine hour and what is the b) estimated TOTAL fixed cost? (Points : 25)Question 5. 5. (TCO 7) North Company produces a small part that it uses in the production of its Product H. The company's unit product cost for the part, based on a production of 100,000 parts per year, is as follows:.................................................Per part ....................TotalDirect Materials............................ $7.00...........$700,000Direct Labor ..................................6.00............$600,000Variable Manufacturing Overhead 2.00...........$200,000Plus:Fixed manufacturing Overhead, (Traceable or avoidable) $300,000 TOTAL, equal to $3 per unitFixed manufacturing Overhead, (Common---not traceable to any product. Will stay even if no product is manufactured) allocated on basis of labor-hours 6.00) $600,000 TotalUnit Product Cost........................... $24.00 (7 + 6 + 2, variable of $15. Plus, Fixed 3+ 6=9, total)An outside supplier has offered to supply parts to the North Company for only $21.25 per part. (It appears to the President of the company that he could save $2.75 per unit.)100% of the traceable or avoidable fixed manufacturing cost is supervisor salaries and other costs that can be ELIMINATED if the parts are purchased. The decision to buy the parts from the outside supplier would have no effect on the common fixed costs of the company, and the space being used to produce the parts would otherwise be idle. Ignore the impact of income taxes in your calculation.How much would profits increase or decrease as a result of purchasing the parts from theoutside supplier rather than making them inside the company? (Points : 25)Question 6. 6. (TCO 9) (TCO 9) Harry Corp buys equipment for $224,888 that will last for 9 years. The equipment will generate cash flows of $36,000 per year and will have no salvage value at the end of its life. Ignore taxes. Use 10% required rate of return.(a) What is the Present Value (PV) of this investment (at 10%)?.(b) What is the NET Present Value (NPV) of this investment? If you need 10%, should you buy the equipment?(c) What is the Internal Rate of Return (IRR) of this investment?(d) What is the payback period? . (Points : 25)Question 7. 7. (TCO 10) Tanya Corp sells its products on both credit and cash basis. Monthly sales are sold 20% for cash, 80% for credit. Credit sales are collected 65% in the month of sale and 35% the following month. Sales for the first quarter are BUDGETED as follows: January $200,000; February $300,000; March $300,000.Compute cash collections Budgeted for February. How much cash was collected in the month? (Points : 25) Rating: 4.9/5
Solution: DEVRY ACCT346 FULL COURSE LATEST MARCH 2015[ ALL DISCUSSIONS ALL HOMEWORK MIDTERM AND FINAL ]