Brief Exercise 21-7 Page 1 of 1

*Brief Exercise 21-7

Production costs chargeable to the Finishing Department in June in Cascio Company are materials $16,000, labor $29,500, overhead $18,000. Equiva lent units of production are materials 20,000 and conversion costs 19,000.

Compute the unit costs for materials and conversion costs. (Round answers to 2 decimal places, e.g. 15.25.)

Unit conversion cost

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Exercise 21-3 (Part Level Submission) Page 1 of 1

*Exercise 21-3 (Part Level Submission) The ledger of Custer Company has the following work in process account.

5/1 Balance 3,590 5/31 Transferred out ?

5/31 Materials 5,160

5/31 Labor 2,740

5/31 Overhead 1,380

5/31 Balance ?

Production records show that there were 400 units in the beginning inventory, 30% complete, 1,400 units started, and 1,500 un its transferred out. The beginn ing work in process had materia ls cost of $2,040 and conversion costs of $1,550. The units in ending inventory were 40% complete. Materia ls are entered at the beginning of the painting process.

*(a)

How many units are in process at May 31?

Units in process at May 31

*(b)

The parts of this question must be completed in order. This part will be available when you complete the part above.

*(c)

The parts of this question must be completed in order. This part will be available when you complete the part above.

*(d)

The parts of this question must be completed in order. This part will be available when you complete the part above.

*(e)

The parts of this question must be completed in order. This part will be available when you complete the part above.

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Exercise 21-6 (Part Level Submission)

*Exercise 21-6 (Part Level Submission) The Cutting Department of Cassel Company has the following production and cost data for July.

Production 1. Transferred out 12,000 units.

2. Started 3,000 units that are 60%

complete as to conversion

costs and 100% complete as

to materials at July 31.

Costs Beginning work in process

Materials

Labor

Manufacturing overhead

$ -0-45,000 16,200

18,300

Page 1 of 1

Materials are entered at the beg inning of the process. Conversion costs are incurred uniformly during the process.

*(a)

Determine the equivalent units of production for (1) materials and (2) conversion costs.

(1) Equivalent units of production for materials

(2) Equivalent units of production for conversion costs

*(b1)

The parts of this question must be completed in order. This part will be available when you complete the part above.

*(b2)

The parts of this question must be completed in order. This part will be available when you complete the part above.

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Do It! Review 22-2 (Part Level Submission) Page 1 of 1

*Do It! Review 22-2 (Part Level Submission) Westerville Company accumulates the following data concerning a mixed cost, using units produced as the activity level.

Units Produced Total Cost

March 10,000 $18,000

April 9,000 16,650

May 10,500 18,580

June 8,800 16,200

July 9,500 17,100

*(a)

Compute the variable and fixed cost elements using the high-low method.

Fixed cost

*(b) The parts of this question must be completed in order. This part will be available when you complete the part above.

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Do It! Review 22-3 (Part Level Submission) Page 1 of 1

*Do It! Review 22-3 (Part Level Submission) Larissa Company has a un it selling price of $250, variable costs per unit of $170, and fixed costs of $140,000.

*(a)

Compute the break-even point in units using the mathematical equation.

The break-even point L----------l units

*(b)

The parts of this question must be completed in order. This part will be available when you complete the part above.

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Do It! Review 22-4 (Part Level Submission) Page 1 of 1

*Do It! Review 22-4 (Part Level Submission) Presto Company makes radios that sell for $30 each. For the coming year, management expects fixed costs to total $220,000 and variable costs to be $18 per unit.

*(a)

Compute the break-even point in dollars using the contribution margin (CM) ratio .

Break-even Point in Dollars $L_ _______ __J

*(b)

The parts of this question must be completed in order. This part will be available when you complete the part above.

*(c) The parts of this question must be completed in order. This part will be available when you complete the part above.

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Exercise 22-12 (Part Level Submission)

*Exercise 22-12 (Part Level Submission) Cannes Company has the following information ava ilable for September 2014.

Unit selling price of v ideo game consoles Unit variable costs

$400 $275

$52,000 600

Total f ixed costs Units sold

*(a) and (b)

Compute the contribution margin per unit.

Contribution Margin $~__ _______ ____~per units

Prepare a CVP income statement that shows both total and per unit amounts.

*(c)

CANNES COMPANY CVP Income Statement

For the Month Ended September 30, 2014

Page 1 of 1

The parts of this question must be completed in order. This part will be available when you complete the part above.

*(d)

The parts of this question must be completed in order. This part will be available when you complete the part above.

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Exercise 22-13 (Part Level Submission) Page 1 of 1

*Exercise 22-13 (Part Level Submission) Naylor Company had $210,000 of net income in 2013 when the selling price per unit was $150, the variable costs per unit were $90, and the fixed costs were $570,000. Management expects per unit data and total fixed costs to remain the same in 2014. The president of Naylor Company is under pressure from stockholders to increase net income by $52,000 in 2014.

*(a)

Compute the number of units sold in 2013. (Round answers to 0 decimal places, e.g. 5,275.)

The Number of Units Sold units

*(b) The parts of this question must be completed in order. This part will be available when you complete the part above.

*(c) The parts of this question must be completed in order. This part will be available when you complete the part above.

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Exercise 22-14 Page 1 of 1

*Exercise 22-14

Cottonwood Company reports the following operating results for the month of August: Sales $400,000 (units 5,000); variable costs $210,000; and fixed costs $90,000. Management is considering the following independent courses of action to increase net income.

1. Increase selling price by 10% with no change in tota l variable costs or units sold. 2. Reduce variable costs to 45% of sales.

Compute the net income to be earned under each alternative. (Round all answers to 0 decimal places, e.g. 5,275.)

1. Net income $.___ _______ ___.

2. Net income $.___ _______ ___.

Which course of action will produce the highest net income?

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Question I

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Question 1 Heidebrecht Design acquired 30% of the outstanding common stock of Quayle Company on January 1, 2014, by paying $836,400 for the 49,200 shares. Quayle declared and paid $0.50 per share cash dividends on March 15, June 15, September 15, and December 15, 2014. Quayle reported net income of $315,700 for the year. At December 31, 2014, the market price of Quayle common stock was $25 per share.

Prepare the journal entries for Heidebrecht Design for 2014 assuming Heidebrecht Design cannot exercise significant influence over Quayle. (Use the cost method and assume that Quayle common stock should be classified as a trading security.) (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

Date Account Titles and Explanation Debit Credit

Prepare the journal entries for Heidebrecht Design for 2014, assuming Heidebrecht Design can exercise significant influence over Quayle. Use the equity method. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)

Date Account Titles and Explanation

Debit Credit

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Question 1

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Indicate the balance sheet and income statement account balances at December 31, 2014, under each method of accounting.

Stock Investments

Unrealized gain-income

Dividend revenue

Revenue from stock investments

Cost Method

$L-------------~

Equity Method

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Question 2

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··Question 2 Rodriquez Corporation's comparative balance sheets are presented below.

Cash

Accounts receivable

Investments

Equipment

RODRIQUEZ CORPORATION Comparative Balance Sheets

December 31

2014

$15,430

25,190

19,770

60,190

Accu mu Ia ted depreciation-equipment (13,920)

Total $106,660

Accounts payable $14,440

Bonds payable 10,020

Common stock 50,140

Retained earnings 32,060

Total $106,660

Additional information:

2013

$17,630

22,020

15,800

69,820

(10,080 )

$115,190

$11,140

30,140

44,670

29,240

$115,190

1. Net income was $18,740. Dividends declared and paid were $15,920. 2. Equipment which cost $9,630 and had accumulated depreciation of $1,040 was sold for $3,340. 3. All other changes in noncurrent account balances had a direct effect on cash flows, except the

change in accumulated depreciation.

Prepare a statement of cash flows for 2014 using the indirect method. (Show amounts that decrease cash flow with either a- sign e.g. -15,000, or in parenthesis e.g. (15,000).)

RODRIQUEZ CORPORATION Statement of Cash Flows

For the Year Ended December 31, 2014

Adjustments to reconcile net income to

$L-------------~

$L-------------~

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Question 2 http: //edugen.wileyplus.com/edugen/shared/assignment/test/qprint.uni

$L_ ____________ ~

Compute free cash flow.

Free cash flow $L_ _______ __,

.. , __ ------

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Question 3

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· Question 3 The comparative condensed balance sheets of Gurley Corporation are presented below.

GURLEY CORPORATION Comparative Condensed Balance Sheets

December31

2015 Assets

Current assets $ 74,870

Property, plant, and equipment (net) 97,900

Intangibles 28,560

Tota l assets $201,330

Liabilities and stockholders' equity

Current liabilities $ 43,210

Long-term liabilities 144,960

Stockholders' equ ity 13, 160

Tota l liabilities and stockholders' equity $201,330

2014

$ 78,700

90,280

40,870

$209,850

$ 46,640

149,920

13,290

$209,850

Prepare a horizontal analysis of the balance sheet data for Gurley Corporation using 2014 as a base. (Enter negative amounts and percentages using either a negative sign preceding the number e.g. -45, -45% or parentheses e.g. (45), (45%). Round percentages to 1 decimal place, e.g. 12.3%.)

2015

Assets

Current Assets $74,870

Property, Plant & 97,900

Equipment (net)

Intangibles 28,560

Total assets $201,330

Liabilities and Stockholders' Equity

GURLEY CORPORATION Condensed Balance Sheets

December 31

2014 Increase

(Decrease)

$78,700

90,280

40,870

po9l850

$

$

Percentage Change from 2014

%

%

0/o

0/o

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Question 3

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Current Liabilities $43,210 $46,640 $

Long-term Liabilities 144,960 149,920

Stockholders' Equity 13,160 13,290

Total liabilities and $

stockholders' equity po1l33o $209£850

Prepare a vertical analysis of the balance sheet data for Gurley Corporation in columnar form for 2015. (Round percentages to 1 decimal place, e.g. 12.3%.)

Assets

Current Assets

Property, Plant, and Equipment

Intangibles

Total assets

GURLEY CORPORATION Condensed Balance Sheet

December 31, 2015

Amount

$74,870

97,900

28£560

$201£330

Liabilities and Stockholders' Equity

Current Liabilities $43,210

Long-term Liabilities 144,960

Stockholders' Equity 13£160

Total liabilities and stockholders' equity $201£330

Percent

%

%

0/o

I 0/o

%

%

1%

I Ofo

0/o

%

0/o

%

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Question 4

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, Question 4 The comparative condensed income statements of Emley Corporation are shown below.

EMLEY CORPORATION Comparative Condensed Income Statements

For the Years Ended December 31

Net sales

Cost of goods sold

Gross profit

Operating expenses

Net income

2015

$596,800

486,990

109,810

56,930

$ 52,880

2014

$501,520

420,610

80,910

45,550

$ 35,360

Prepare a horizontal analysis of the income statement data for Emley Corporation using 2014 as a base. (Round percentages to 1 decimal place, e.g. 12.3%.)

2015

Net sales $596,800

Cost of goods sold 486,990

Gross profit 109,810

Operating expenses 56,930

Net income $52,880

EMLEY CORPORATION Condensed Income Statements

For the Years Ended December 31

Increase or (Decrease) During 2015

2014 Amount Percentage

$501,520 $L_ ____________ ~

420,610

80,910

45,550

$35,360 $

Prepare a vertical analysis of the income statement data for Emley Corporation in columnar form for both years . (Round percentages to 1 decimal place, e.g. 12.3%.)

Amount

Net sales $596,800

EMLEY CORPORATION Condensed Income Statements

For the Years Ended December 31

2015

Percent Amount

L---------------~o/0 $501,520

2014

Percent

L_ ______________ __,%

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Question 4 http://edugen.wileyplus.com/edugen/shared/assignment/test/qprint.uni

Cost of goods sold 486,990 % 420,610 %

Gross profit 109,810 % 80,910 %

Operating expenses 56,930 % 45,550 %

Net income $52,880 % $ 35,360 %

11/14/2014 3:54PM 2 of2

For all questions, assume no other transactions or activities have taken place during the period except as noted.

Prepare and present calculations for partial credits for questions with calculations and presentations.

Answer all questions: show calculations for partial credit- 5 Questions

Question 1:

Lucky Strike Inc. acquired 10% of the 443,900 shares of common stock of Camel Inc. at a total cost of $11 per share on January 1,

2014. On September 1, Camel declared and paid a $116,800 dividend. Camel reported net income of $587,700 for the year ended

December 31, 2014.

Required: Journalize each transaction for 2014 for Lucky Strike Inc.

Question 2:

Concrete Inc. obtained significant influence over Sands Inc. by purchasing 30% of Sands' 101,300 outstanding shares of common

stock at a cost of $17 per share on January 1, 2014. On July 1, Sands declared and paid a cash dividend of $197,000. Sands

reported net income of $295,800 for the year ended December 31, 2014.

Required: Journalize each transaction for 2014 for Concrete Inc.

Question 3:

Mosaic Company's comparative balance sheets are presented below.

Cash Accounts receivable

Land Buildings

Mosaic Company Comparative Balance Sheets

December 31

$14,530 21,010 19,680

69,730

Accumulated depreciation-buildings (15,130)

Total $109,820

Accounts payable $12,750

Common stock 74,990

Retained earnings 22,080

Total $109,820

Additional information:

$10,830

23,630 25,610 69,730

(10,510)

$119,290

$31,230 68,020 20,040

$119,290

1. Net income was $22,124. Dividends declared and paid were $20,084 . 2. All other changes in noncurrent account balances had a direct effect on cash flows, except the change in accumulated

depreciation. The land was sold for $4,700.

Required: Prepare a statement of cash flows for the year ended December 31, 2014 using the indirect method.

Question 4:

Financial information for Mark III Company is presented below.

December 31 Current assets $123,830 $103,320

Plant assets (net) 394,800 329,480

Current liabilities 86,170 74,920

Long-term liabilities 132,400 88,310

Common stock, $1 par 166,260 112,500

Retained earnings 133,800 157,070

Required: Prepare a schedule showing a horizontal analysis for 2015 using 2014 as the base year.

Question 5:

Operating data for Ivy Craft Company are presented below.

2015 2014 Net sales $745,870 $596,850

Cost of goods sold 462,940 385,690

Selling expenses 119,460 73,520

Administrative expenses 57,780 49,450

Income tax expense 34,210 23,390

Net income 71,480 64,800

Required: Prepare a schedule showing a vertical analysis for 2015 and 2014.