ACC 206 Inspiring Communication / snaptutorial.com

1. ACC 206 Entire Course For more classes visit www.snaptutorial.com ACC 206 Week 1 Assignment Chapter One Problems ACC 206 Week 1 DQ1 Cash Flows Information ACC 206 Week 1 DQ2 Apple's Cash Flow ACC 206 Week 2 Assignment Chapter Two and Three Problems ACC 206 Week 2 DQ1 Stock Features ACC 206 Week 2 DQ2 Role of Management Accounting ACC 206 Week 2 Journal Institute of Management Accounting ACC 206 Week 3 Assignment Chapter Four and Five Problems ACC 206 Week 3 DQ1 Issues in Costing ACC 206 Week 3 DQ2 CVP and the Airline Industry ACC 206 Week 3 Journal Hershey Company

2. ACC 206 Week 4 Assignment Chapter Six and Seven Problems ACC 206 Week 4 DQ1 Issues in Standard Costs and Budgeting ACC 206 Week 4 DQ2 Flexible Budgets ACC 206 Week 5 Assignment Chapter Eight Problems ACC 206 Week 5 Assignment Final Papers ACC 206 Week 5 DQ1 Long-term Decision Making ACC 206 Week 5 DQ2 Responsibilities in Management Accounting ********************************** ACC 206 Week 1 Assignment Chapter One Problems For more classes visit www.snaptutorial.com

3. Answer the following questions: Why are noncash transactions, such as the exchange of common stock a building, included on a statement of cash flows? How are these noncash transactions disclosed? Chapter 1 Exercise 1: 1. Classification of activities Classify each of the following transactions as arising from an operating (O), investing (I), financing (F), or noncash investing/financing (N) activity. a. ________ Received $80,000 from the sale of land. b. ________ Received $3,200 from cash sales. c. ________ Paid a $5,000 dividend. d. ________ Purchased $8,800 of merchandise for cash. e. ________ Received $100,000 from the issuance of common stock. f. ________ Paid $1,200 of interest on a note payable. g. ________ Acquired a new laser printer by paying $650. ________ Acquired a $400,000 building by signing a $400,000 mortgage note. h. Chapter 1 Exercise 4:

4. 4. Overview of direct and indirect methods Evaluate the comments that follow as being True or False. If the comment is false, briefly explain why. Both the direct and indirect methods will produce the same cash flow from operating activities. a. Depreciation expense is added back to net income when the indirect method is used. b. One of the advantages of using the direct method rather than the indirect method is that larger cash flows from financing activities will be reported. c. The cash paid to suppliers is normally disclosed on the statement of cash flows when the indirect method of statement preparation is employed. d. The dollar change in the Merchandise Inventory account appears on the statement of cash flows only when the direct method of statement preparation is used. e. Chapter 1 Exercise 6: 6. Equipment transaction and cash flow reporting

5. New equipment purchased during 20x4 totaled $280,000. The 20x4 income statement disclosed equipment depreciation expense of $41,000 and a $9,000 loss on the sale of equipment. Determine the cost and accumulated depreciation of the equipment sold during 20X4. a. b. Determine the selling price of the equipment sold. Show how the sale of equipment would appear on a statement of cash flows prepared by using the indirect method. c. Chapter 1 Problem 3: 3. Cash flow information: Direct and indirect methods The comparative year-end balance sheets of Sign Graphics, Inc., revealed the following activity in the company's current accounts: ********************************** ACC 206 Week 1 DQ 2 Apple's Cash Flow For more classes visit

6. www.snaptutorial.com Go to http://finance.yahoo.com. Enter in “AAPL” and click on the “get quote” button, and it will bring up information on Apple. On the left hand side you’ll see a section on Financials. Within that section, click on the cash flow. Review the cash flow statement for Apple. How would you summarize Apple’s cash flow position and what does this statement tell you about where the money is coming from and where it’s going? What would you suggest Apple’s do to improve its cash position and why? Guided Response: Analyze several of your peers’ postings. Do you agree with the posting? Let at least two of your peers know what you would add. ********************************** ACC 206 Week 1 DQ1 Cash Flows Information For more classes visit www.snaptutorial.com

7. What information does the cash flow statement provide that you cannot see in the other financial statements (income statement, balance sheet, owner’s equity)? What elements of the cash flow statement do you think are most important for company management to monitor and why? Is this different for investors? Guided Response: Review your peers’ postings. Respond to at least two of classmates, letting them know whether you agree with the use of the cash flow statement and why. Additionally, share elements of the cash flow statement that you see as being the greatest interest to investors (as opposed to internal management) and why. ********************************** ACC 206 Week 2 Assignment Chapter Two and Three Problems For more classes visit www.snaptutorial.com

8. Please complete the following 7 exercises below in either Excel or a word document (but must be single document). You must show your work where appropriate (leaving the calculations within Excel cells is acceptable). Save the document, and submit it in the appropriate week using the Assignment Submission button. Chapter 2 Exercise 1 1. Issuance of stock Prepare journal entries to record the issuance of 100,000 shares of common stock at $20 per share for each of the following independent cases: Jackson Corporation has common stock with a par value of $1 per share. a. Royal Corporation has no-par common with a stated value of $5 per share. b. French Corporation has no-par common; no stated value has been assigned c. Chapter 2 Exercise 3 3. Analysis of stockholders' equity

9. Star Corporation issued both common and preferred stock during 20X6. The stockholders' equity sections of the company's balance sheets at the end of 20X6 and 20X5 follow. 20X6 20X5 Preferred stock, $100 par value, 10% $580,000 $500,000 Common stock, $10 par value 2,350,000 1,750,000 Paid-in capital in excess of par value Preferred 24,000

10. — Common 4,620,000 3,600,000 Retained earnings 8,470,000 6,920,000 Total stockholders' equity $16,044,000 $12,770,000 a. Compute the number of preferred shares that were issued during 20X6. b. Calculate the average issue price of the common stock sold in 20X6.

11. By what amount did the company's paid-in capital increase during 20X6? c. Did Star's total legal capital increase or decrease during 20X6? By what amount? d. Chapter 2 Problem 1 1. Bond computations: Straight-line amortization Southlake Corporation issued $900,000 of 8% bonds on March 1, 20X1. The bonds pay interest on March 1 and September 1 and mature in 10 years. Assume the independent cases that follow. Case A—The bonds are issued at 100. Case B—The bonds are issued at 96. Case C—The bonds are issued at 105. Southlake uses the straight-line method of amortization. Instructions: Complete the following table: Case A

12. Case B Case C Cash inflow on the issuance date _______ _______ _______ Total cash outflow through maturity _______ _______ _______ Total borrowing cost over the life of the bond issue

13. _______ _______ _______ Interest expense for the year ended December 31, 20X1 _______ _______ _______ Amortization for the year ended December 31, 20X1 _______ _______ _______ Unamortized premium as of December 31, 20X1

14. _______ _______ _______ Unamortized discount as of December 31, 20X1 _______ _______ _______ Bond carrying value as of December 31, 20X1 _______ _______ _______

15. Chapter 3 Exercise 1 1. Product costs and period costs The costs that follow were extracted from the accounting records of several different manufacturers: 1. Weekly wages of an equipment maintenance worker 2. Marketing costs of a soft drink bottler 3. Cost of sheet metal in a Honda automobile 4. Cost of president's subscription to Fortune magazine Monthly operating costs of pollution control equipment used in a steel mill 5. 6. Weekly wages of a seamstress employed by a jeans maker Cost of compact discs (CDs) for newly recorded releases of Rush, Billy Joel, and Bryan Adams 7. Determine which of these costs are product costs and which are period costs. a. For the product costs only, determine those that are easily traced to the finished product and those that are not. b. Chapter 3 Exercise 2

16. 2. Definitions of manufacturing concepts Interstate Manufacturing produces brass fasteners and incurred the following costs for the year just ended: Materials and supplies used Brass $75,000 Repair parts 16,000 Machine lubricants 9,000 Wages and salaries Machine operators 128,000 Production supervisors 64,000 Maintenance personnel 41,000 Other factory overhead Variable 35,000 Fixed 46,000 Sales commissions 20,000 Compute: a. Total direct materials consumed b. Total direct labor c. Total prime cost d. Total conversion cost

17. Chapter 3 Exercise 5 5. Schedule of cost of goods manufactured, income statement The following information was taken from the ledger of Jefferson Industries, Inc.: Direct labor $85,000 Administrative expenses $59,000 Selling expenses 34,000 Work in. process Sales

18. 300,000 Jan. 1 29,000 Finished goods Dec. 31 21,000 Jan. 1 115,000 Direct material purchases 88,000 Dec. 31 131,000 Depreciation: factory

19. 18,000 Raw (direct) materials on hand Indirect materials used 10,000 Jan. 1 31,000 Indirect labor 24,000 Dec. 31 40,000 Factory taxes 8,000 Factory utilities

20. 11,000 Prepare the following: A schedule of cost of goods manufactured for the year ended December 31. a. b. An income statement for the year ended December 31. Chapter 3 Problem 3 3. Manufacturing statements and cost behavior Tampa Foundry began operations during the current year, manufacturing various products for industrial use. One such product is light-gauge aluminum, which the company sells for $36 per roll. Cost information for the year just ended follows. Per Unit Variable Cost Fixed Cost Direct materials $4.50

21. $ — Direct labor 6.5 — Factory overhead 9 50,000 Selling — 70,000 Administrative — 135,000

22. Production and sales totaled 20,000 rolls and 17,000 rolls, respectively There is no work in process. Tampa carries its finished goods inventory at the average unit cost of production. Instructions: Determine the cost of the finished goods inventory of light- gauge aluminum. a. Prepare an income statement for the current year ended December 31 b. c. On the basis of the information presented: Does it appear that the company pays commissions to its sales staff? Explain. 1. What is the likely effect on the $4.50 unit cost of direct materials if next year's production increases? Why? 2. ********************************** ACC 206 Week 2 DQ1 Stock Features

23. For more classes visit www.snaptutorial.com 1. What is callable preferred stock? Why do corporations issue such stock? Given the different features that are associated with stock (callable, cumulative, preferred, etc.), what type of stock would you want to buy personally and why? Guided Response: Review your peers’ posts. Respond to at least two of your classmates, letting them know if you agree with their type of desired stock and whether your answer would change (and why) based on: a. Different economic conditions b. State of the company (if the company is in a growth phase versus a mature state). ********************************** ACC 206 Week 2 DQ2 Role of Management Accounting

24. For more classes visit www.snaptutorial.com Review the roles of management accounting within a company. What is the most important role of management accounting? How is that different than financial accounting? Guided Response: Review your peer's responses. Respond to at least two of your peers, adding at least two additional areas that management accountants focus on that the author didn't include ********************************** ACC 206 Week 2 Journal Institute of Management Accounting For more classes visit www.snaptutorial.com

25. While there are many instances of overlap between financial accounting and management accounting, each group’s primary focus is different. Review the Institute of Management Accounting’s (IMA) website, specifically the “About IMA” and the “Resources and Publications” sections of the website. Are you surprised by the topics that management accountants are focusing on? Why or why not? What interests you more, financial accounting or management accounting? Carefully review the Grading Rubric for the criteria that will be used to evaluate your journal entry. ********************************** ACC 206 Week 3 Assignment Chapter Four and Five Problems For more classes visit www.snaptutorial.com

26. Please complete the following 7 exercises below in either Excel or a word document (but must be single document). You must show your work where appropriate (leaving the calculations within Excel cells is acceptable). Save the document, and submit it in the appropriate week using the Assignment Submission button. Chapter 4 Exercise 3 3. Cost flows and overhead application Cleveland Metals uses a job cost system and applies factory overhead to production at a predetermined rate of 180% of direct labor cost. Data pertaining to recent operations follow. Job no. 636 was the only job in process on January 1 of the current year. The Work in Process account contained a $24,600 balance on this date. Jobs no. 637, 638, and 639 were started during January. Total direct material requisitions and directlabor incurred during January amounted to $89,200 and $114,500, respectively. The only job that remained in process on January 31 was job no. 638, with costs of $15,000 for direct materials and $20,000 for direct labor. Compute the total cost of the work in process inventory on January 31. a.

27. Compute the cost of jobs completed during January, and present the proper journal entry to reflect job completion. b. Chapter 4 Exercise 7 7. Overhead application: Working backward The Towson Manufacturing Corporation applies overhead on the basis of machine hours. The following divisional information is presented for your review: Division A Division B Actual machine hours 22,500 ? Estimated machine hours 20,000

28. ? Overhead application rate $4.50 $5.00 Actual overhead $110,000 ? Estimated overhead ? $90,000 Applied overhead ? $86,000

29. Over- (under-) applied overhead ? $6,500 Find the unknowns for each of the divisions. Chapter 4 Problem 2 2. Computations using a job order system General Corporation employs a job order cost system. On May 1 the following balances were extracted from the general ledger; Work in process $ 35,200 Finished goods 86,900 Cost of goods sold 128,700 Work in Process consisted of two jobs, no. 101 ($20,400) and no. 103 ($14,800). During May, direct materials requisitioned from the storeroom amounted to $96,500, and direct labor incurred totaled $114,500. These figures are subdivided as follows:

30. Direct Materials Direct Labor Job No. Amount Job No. Amount 101 $5,000 101 $7,800 115 19,500

31. 103 20,800 116 36,200 115 42,000 Other 35,800 116 18,000 $96,500 Other

32. 25,900 $114,500 Job no. 115 was the only job in process at the end of the month. Job no. 101 and three "other" jobs were sold during May at a profit of 20% of cost. The "other" jobs contained material and labor charges of $21,000 and $17,400, respectively. General applies overhead daily at the rate of 150% of direct labor cost as labor summaries are posted to job orders. The firm's fiscal year ends on May 31. Instructions: a. Compute the total overhead applied to production during May. b. Compute the cost of the ending work in process inventory. c. Compute the cost of jobs completed during May. d. Compute the cost of goods sold for the year ended May 31. Chapter 5 Exercise 1

33. 1. High-low method The following cost data pertain to 20X6 operations of Heritage Products: Quarter 1 Quarter 2 Quarter 3 Quarter 4 Shipping costs $58,200 $58,620 $60,125 $59,400 Orders shipped

34. 120 140 175 150 The company uses the high-low method to analyze costs. a. Determine the variable cost per order shipped. b. Determine the fixed shipping costs per quarter. If present cost behavior patterns continue, determine total shipping costs for 20X7 if activity amounts to 570 orders. c. Chapter 5 Exercise 2 The treasurer anticipates the following costs for the event, which will be held at the Regency Hotel: Room rental Dinner cost (per person) Chartered buses Favors and souvenirs (per person) Band $300 25 500 5 900

35. Each person would pay $40 to attend; 200 attendees are expected. a. Will the event be profitable for the sorority? Show computations. b. How many people must attend for the sorority to break even? Suppose the sorority encouraged its members to drive to the hotel and did not charter the buses. Further, a planned menu change will reduce the cost per meal by $2. If each member will still be charged $40, compute the contribution margin per person. c. Chapter 5 Exercise 3 3. Break-even and other CVP relationships Cedars Hospital has average revenue of $180 per patient day. Variable costs are $45 per patient day; fixed costs total $4,320,000 per year. a. How many patient days does the hospital need to break even? What level of revenue is needed to earn a target income of $540,000? b. If variable costs drop to $36 per patient day, what increase in fixed costs can be tolerated without changing the break-even point as determined in part (a)? c.

36. Chapter 5 Problem 6 6. Direct and absorption costing The information that follows pertains to Consumer Products for the year ended December 31, 20X6. Inventory, 1/1/X6 24,000 units Units manufactured 80,000 Units sold 82,000 Inventory, 12/31/X6 ? units Manufacturing costs: Direct materials $3 per unit

37. Direct labor $5 per unit Variable factory overhead $9 per unit Fixed factory overhead $280,000 Selling & administrative expenses: Variable $2 per unit Fixed $136,000 The unit selling price is $26. Assume that costs have been stable in recent years.

38. Instructions: a. Compute the number of units in the ending inventory. b. Calculate the cost of a unit assuming use of: 1. Direct costing. 2. Absorption costing. Prepare an income statement for the year ended December 31, 20X6, by using direct costing. c. Prepare an income statement for the year ended December 31, 20X6, by using absorption costing. d. ********************************** ACC 206 Week 3 DQ 2 CVP and the Airline Industry For more classes visit www.snaptutorial.com

39. We’ve all experienced (or heard about) the challenges that the airlines have been facing. Read the Zacks Investment Research article, “Airline Industry Stock Outlook – August 2012” Identify three factors that are affecting airline company’s ability to break even. For each of your factors, discuss how these have an impact on the breakeven (contribution margin, fixed costs, variable costs, a combination, etc.), and what happens if these factors increase or decrease. Guided Response: Review your peers’ posts and respond to at least two of your peers. In each response, add two factors that your classmate hasn’t included and explain how your additional factors influence the break-even point. ********************************** ACC 206 Week 3 DQ1 Issues in Costing For more classes visit www.snaptutorial.com

40. Describe three issues/problems that a company could encounter when trying to determine the actual cost of a good or service to be used in the cost of goods sold. For each of your issues, provide an example of a company or industry where these issues could be present. Guided Response: Review your peers’ posts and respond to at least two of your classmates. Describe how job order costing or activity-based costing could resolve the issues your classmates mentioned in their posts. ********************************** ACC 206 Week 3 Journal Hershey Company For more classes visit www.snaptutorial.com Go the Hershey website to learn how to make Hershey chocolate. Review the process and take a look at some of the videos. Pay particular attention to the process steps of milling and pressing, mixing the ingredients, and refining.

41. In at least one paragraph, describe the costing system that you would recommend Hershey use to account for its cost of goods sold and why. Include a few product costs you think would be traceable, which costs should be allocated, and how Hershey should account and apply the manufacturing overhead costs. Carefully review the Grading Rubric for the criteria that will be used to evaluate your journal entry. ********************************** ACC 206 Week 4 Assignment Chapter Six and Seven Problems For more classes visit www.snaptutorial.com Please complete the following 8 exercises below in either Excel or a word document (but must be single document). You must show your work where appropriate (leaving the calculations within Excel cells is

42. acceptable). Save the document, and submit it in the appropriate week using the Assignment Submission button. Chapter 6 Exercise 2 2. Schedule of cash collections Sugarland Company sells a single product and anticipates opening a new facility in Charlotte on May 1 of the current year. Expected sales during the first three months of activity are: May, $60,000; June, $80,000; and July, $85,000. Thirty percent of all sales are for cash; the remaining 70% are on account. Credit sales have the following collection pattern: Chapter 6 Exercise 4 4. Production and cash-outlay computations RPR, Inc., anticipates that 120,000 units of product K will be sold during May. Each unit of product K requires four units of raw material A. Actual inventories as of May 1 and budgeted inventories as of May 31 follow. Chapter 6 Exercise 5 5. Abbreviated cash budget; financing emphasis An abbreviated cash budget for Big Chuck Enterprises follows.

43. Chapter 6 Problem 3 3. Comprehensive budgeting The balance sheet of Watson Company as of December 31, 20X1, follows. Chapter 7 Exercise 3 3. Variances for direct materials and direct labor Banner Company manufactures flags of various countries. Each flag has a standard of eight square feet of fabric and three hours of direct labor time. Information about recent production activity follows. Chapter 7 Exercise 5 5. Overhead variances Nova Manufacturing applies factory overhead to products on the basis of direct labor hours. At the beginning of the current year, the company's accountant made the following estimates for the forthcoming period: · Estimated variable overhead: $500,000 · Estimated fixed overhead: $400,000 · Estimated direct labor hours: 40,000

44. It is now 12 months later. Actual total overhead incurred in the manufacture of 7,900 units amounted to $895,100. Actual labor hours totaled 39,800. Assuming a direct labor standard of five hours per finished unit, calculate the following: a. Variable overhead efficiency variance b. Fixed overhead volume variance c. Overhead spending variance Chapter 7 Problem 1 1. P26-A1 Basic flexible budgeting (L.O. 2) Centron, Inc., has the following budgeted production costs: Direct materials $0.40 per unit Direct labor 1.80 per unit Variable factory overhead 2.20 per unit Fixed factory overhead

45. Supervision $24,000 Maintenance 18,000 Other 12,000 The company normally manufactures between 20,000 and 25,000 units each quarter. Should output exceed 25,000 units, maintenance and other fixed costs are expected to increase by $6,000 and $4,500, respectively. During the recent quarter ended March 31, Centron produced 25,500 units and incurred the following costs: Direct Materials $10,710 Direct Labor

46. 47,175 Variable factory overhead 51,940 Fixed factory overhead Supervision 24,500 Maintenance 23,700 Other 16,800 Total production costs $174,825

47. Instructions: a. Prepare a flexible budget for 20,000, 22,500, and 25,000 units of activity. Was Centron's experience in the quarter cited better or worse than anticipated? Prepare an appropriate performance report and explain your answer. b. Explain the benefit of using flexible budgets (as opposed to static budgets) in the measurement of performance. c. Chapter 7 Problem 5 5. P26-B3 Straightforward variance analysis (L.O. 5) Arrow Enterprises uses a standard costing system. The standard cost sheet for product no. 549 follows. ********************************** ACC 206 Week 4 DQ 2 Flexible Budgets For more classes visit

48. www.snaptutorial.com Flexible budgets provide different information than static budgets. Discuss some of these differences. Is a flexible budget always better? Are there times when you’d recommend using a static budget over a flexible budget? Guided Response: Review your peers’ posts and respond to at least two of your classmates. Discuss whether you agree or disagree with the uses of a flexible budget and why. ********************************** ACC 206 Week 4 DQ1 Issues in Standard Costs and Budgeting For more classes visit www.snaptutorial.com

49. Review the Standard costs: wake up and smell the coffee.article. When evaluating performance, many organizations compare current results with the actual results of previous accounting periods. Is an organization that follows this approach likely to encounter any problems? Explain. Guided Response: Review your peers’ posts and respond to at least two of your classmates. Describe how job order costing, process costing, or activity based costing could resolve or exacerbate the issues your classmates discussed in their initial posts. ********************************** ACC 206 Week 5 Assignment Chapter Eight Problems For more classes visit www.snaptutorial.com Please complete the following 5 exercises below in either Excel or a word document (but must be single document). You must show your

50. work where appropriate (leaving the calculations within Excel cells is acceptable). Save the document, and submit it in the appropriate week using the Assignment Submission button. Chapter 8 Exercise 1: 1. Basic present value calculations Calculate the present value of the following cash flows, rounding to the nearest dollar: A single cash inflow of $12,000 in five years, discounted at a 12% rate of return. a. An annual receipt of $16,000 over the next 12 years, discounted at a 12% rate of return. b. A single receipt of $15,000 at the end of Year 1 followed by a single receipt of $10,000 at the end of Year 3. The company has a 10% rate of return. c. An annual receipt of $8,000 for three years followed by a single receipt of $10,000 at the end of Year 4. The company has a 12% rate of return. d. Chapter 8 Exercise 4: 4. Cash flow calculationsand net present value On January 2, 20X1, Bruce Greene invested $10,000 in the stock market and purchased 500 shares of Heartland Development, Inc.