Search here for Tutorials

If the Data is different in your question, please send your questions to homeworksolutionsnow@gmail.com. The questions will be answered at the same price.

BE7‑6 Ndon Company BE7‑9Using the data in BE7-8

BE7‑6 Ndon Company has the following internal control procedures over cash disbursements. Identify the internal control principle that is applicable to each procedure. Company checks are prenumbered. The bank statement is reconciled monthly by an internal auditor. Blank checks are stored in a safe in the treasurer’s office. Only the treasurer or assistant treasurer may sign checks.
Check signers are not allowed to record cash disbursement transactions.
Identify the internal control principles applicable to cash disbursements. (SO 4),
 
BE7‑9Using the data in BE7-8, indicate (a) the items that will result in an adjustment to the depositor’s records and (b) why the other items do not require adjustment.
Identify reconciling items that require adjusting entries (SO 5), C
 
 
File name: BE7-6 BE7-9 Ndon comp.doc File type: doc PRICE: $5

4-1 4-2 4-6 4-13 4-14 Finance Questions

4-1 4-2 4-6 4-13 4-14
 
4-1 Future Value of a Single Payment
If you deposit $10,000 in a bank account that pays 10% interest annually, how much will be in your account after 5 years?
 
4-2 Present Value of a Single Payment
What is the present value of a security that will pay $5,000 in 20 years if securities of equal risk pay 7% annually?
 
4-6 Future Value: ordinary Annuity versus Annuity Due
What is the future value of a 7%, 5-year ordinary annuity that pays $300 each year? If this were an annuity due, what would its future value be?
 
4-13 Present Value of an Annuity
Find the present value of the following ordinary annuities.
a. $400 per year for 10 years at 10%
b. $200 per year for 5 years at 5%
c $400 per year for 5 years at 0%
d. Now rework parts a, b, and c assuming that payments are made at the beginning of each year; that is, they are annuities due.
 
4-14 Uneven Cash Flow Stream
Find the present values of the following cash flow streams. The appropriate interest rate is 8%. (Hint: It is fairly easy to work this problem dealing with the individual cash flows. However, if you have a financial calculator, read the section of the manual that describes how to enter cash flows such as the ones in this problem. This will take a little time, but the investment will pay huge dividends throughout the course. Note that, when working with the calculator’s cash flow register, you must enter CF0 = 0. Note also that it is quite easy to work the problem with Excel.)
 
YEAR CASH STREAM CASH STREAM
              A         B
1          $100    300
2          400      400
3          400      400
4          400      400
5          300      100
b. What is the value of each cash flow stream at a 0% interest rate?
 
All working must show in excel
 
TUTORIAL PREVIEW
4-14 Uneven Cash Flow Stream
All working must show in excel
Cash stream A
Cash stream B
year
Cash flow
year
Cash flow
0
0
$0.00
0
0
$0.00
1
100
$92.59
1
300
$277.78
 
File name: 4-1 4-2 4-6 4-13 4-14.xls File type: xls PRICE: $15

Kristopher Manufacturing produces two types of entry doors

Kristopher Manufacturing produces two types of entry doors: Deluxe and Standard. The allocation basis for support costs has been direct labor dollars. For 2009, Kristopher compiled the following data for the two products:
Deluxe
Standard
Sales in units
50,000
400,000
Sales price per unit
$650
$475
Direct material and labor costs per unit
$180
$130
Manufacturing overhead costs per unit
$80
$120
 
Last year, Kristopher purchased an expensive robotics system to allow for more decorative door products in the deluxe product line. The CFO suggested that an activity-based costing (ABC) analysis could be valuable to help evaluate a product mix and promotion strategy for the next sales campaign. She obtained the following ABC information for 2009:
Activity
Cost
Cost Driver
Total
Deluxe
Standard
Setups
$500,000
# of setups
500
400
100
Machine-related
$44,000,000
# of machine hours
600,000
300,000
300,000
Packing
$5,000,000
# of shipments
250,000
50,000
200,000
 
Required
a. Using the current system, what is the estimated
1. total cost of manufacturing one unit for each type of door?
2. profit per unit for each type of door?
 
b. Using the activity-based costing data presented above,
1. compute the cost-driver rate for each overhead activity.
2. compute the revised manufacturing overhead cost per unit for each type of entry door.
3. compute the revised total cost to manufacture one unit of each type of entry door.
4. compute the profit per unit for each type of door.
 
c. Is the deluxe door as profitable as the original data estimated? Why or why not?
 
TUTORIAL PREVIEW
a. Currently estimated deluxe-entry door total cost per unit is $260 = $180 + $80.
Currently estimated standard-entry door total cost per unit is $250 = $130 + $120.
Currently estimated deluxe-entry door profit per unit is $390 = $650 - $260.
Currently estimated standard-entry door profit per unit is $225 = $475 - $250.
 
 
File name: Kristopher Manu.doc File type: doc PRICE: $10

CASE4B–6 Petah, Ltd., of Tel Aviv, Israel, has budgeted costs in its various departments as follows for the coming year

CASE4B–6 Step-Down Method versus Direct Method; Predetermined Overhead Rates [LO10, LO11]
 
CASE4B–6 Petah, Ltd., of Tel Aviv, Israel, has budgeted costs in its various departments as follows for the coming year:
Factory Administration . . . . . . . . . . . . . . .      540,000
Custodial Services . . . . . . . . . . . . . . . . . .       137,520
Personnel . . . . . . . . . . . . . . . . . . . . . . . . .       57,680
Maintenance. . . . . . . . . . . . . . . . . . . . . . .       90,400
Stamping—overhead . . . . . . . . . . . . . . . .       752,600
Assembly—overhead . . . . . . . . . . . . . . . .      351,800
Total overhead cost . . . . . . . . . . . . . . . . . .     1,930,000
 
The Israeli currency is the shekel, denoted by.  The company allocates service department costs to other departments, in the order listed below.
 
Number of Employees
Total Labor
Hours
Square
Meters of
Space Occupied
Direct
Labor-
Hours
Machine-
Hours
Factory Administration
22
5,000
Custodial Services
8
6,000
2,000
Personnel
10
10,000
3,000
Maintenance
50
44,000
10,000
Stamping—overhead
80
60,000
70,000
40,000
140,000
Assembly—overhead
120
180,000
20,000
160,000
20,000
 
290
300,000
110,000
200,000
160,000
 
Stamping and Assembly are operating departments; the other departments are service departments. Factory Administration is allocated on the basis of labor-hours; Custodial Services on the basis of square meters occupied; Personnel on the basis of number of employees; and Maintenance on the basis of machine-hours.
 
Required:
1. Allocate service department costs to consuming departments by the step-down method. Then compute predetermined overhead rates in the operating departments, using a machine-hours basis in Stamping and a direct labor-hours basis in Assembly.
2. Repeat (1) above, this time using the direct method. Again, compute predetermined overhead rates in Stamping and Assembly.
3. Assume that the company doesn’t bother with allocating service department costs but simply computes a single plantwide overhead rate based on total overhead costs (both service department and operating department costs) divided by total direct labor-hours. Compute the plantwide overhead rate.
4. Suppose a job requires machine and labor time as follows:
 
Machine-Hours Direct Labor-Hours
Stamping Department . . . . . . . .                      190                              25
Assembly Department . . . . . . . .                      10                                75
Total hours . . . . . . . . . . . . . . . . .                    200                              100
 
Using the overhead rates computed in (1), (2), and (3) above, compute the amount of overhead cost that would be assigned to the job if the overhead rates were developed using the stepdown method, the direct method, and the plant wide method. (Round allocations to the nearest whole shekel.)
 
File name: CASE4B–6 Petah.xls File type: xls PRICE: $12