WileyPLUS Assignment Week One

Question#1

Correct.

Indicate which statement you would examine to find each of the following items: income statement, balance sheet, retained earnings statement, or statement of cash flows.
Income Statement resp_0 Balance Sheet resp_0 Statement of Cash Flow s resp_0 Balance Sheet resp_0

(a) Revenue during the period.

(b) Supplies on hand at the end of the year.

(c) Cash received from issuing new bonds during the period.

(d) Total debts outstanding at the end of the period.

Question 2 Correct.

Use the basic accounting equation to answer these questions. (a) The liabilities of Cummings Company are $90,000 and the stockholders' equity is $230,000. What is the amount of Cummings Company's total assets? (b) The total assets of Haldeman Company are $170,000 and its stockholders' equity is $90,000. What is the amount of its total liabilities? (c) The total assets of Dain Co. are $800,000 and its liabilities are equal to one-fourth of its total assets. What is the amount of Dain Co.'s stockholders' equity? Assets Liabilities Stockholders' Equity = + (a) (b) (c) $ $
320,000 170,000

$ $ $

90,000 80,000 200,000

$ $ $

230,000 90,000 600,000

800,000 $ Question 3

Correct.

At the beginning of the year, Fuqua Company had total assets of $800,000 and total liabilities of $500,000. (a) If total assets increased $150,000 during the year and total liabilities decreased $80,000, what is the amount of stockholders' equity at the end of the year? (b) During the year, total liabilities increased $100,000 and stockholders' equity decreased $70,000. What is the amount of total assets at the end of the year. (c) If total assets decreased $90,000 and stockholders' equity increased $110,000 during the year, what is the amount of total liabilities at the end of the year? Assets Liabilities Stockholders' Equity = +

(a) (b) (c)

$ $ $

950,000 830,000 710,000

$ $ $

420,000 600,000 300,000

$ $ $

530,000 230,000 410,000

WileyPLUS Assignment Week Two

Question 1 The comparative balance sheets of Nike, Inc. are presented here. NIKE INC. Comparative Balance Sheets May 31 ($ in millions) Assets Current assets Property, plant, and equipment (net) Other assets Total assets Liabilities and Stockholders' Equity Current liabilities Long-term liabilities Stockholders' equity Total liabilities and stockholders' equity 2007 $8,076 1,678 934 $10,688 2006 $7,346 1,658 866 $9,870

$2,584 1,079 7,025 $10,688

$2,612 973 6,285 $9,870

Correct.

Complete the horizontal analysis of the balance sheet data for Nike using 2006 as a base. (If amount decreases, use either a negative sign preceding the number, e.g. -45 or parenthesis, e.g. (45). Round all percentages to 1 decimal place, e.g. 12.5.) NIKE, INC. Condensed Balance Sheet December 31 ($ in millions) 2007 $8,076 1,678 934 $10,688 2006 $7,346 1,658 866 $9,870 $ Increase or (Decrease) Amount Percentage $
730 20 68 818 9.94 1.21 7.85 8.29

Assets Current assets Property, plant and equipment (net) Other assets Total assets

% % % %

Liabilities and stockholders' equity Current liabilities Long-term liabilities Total stockholders' equity Total liabilities & stockholders' equity $2,584 1,079 7,025 $10,688 $2,612 973 6,285 $9,870 $ $
-28 106 740 818 -1.07 10.89 11.77 8.29

% % % %

Correct.

Complete the vertical analysis of the balance sheet data for Nike for 2007. (Round all of the percentages to 1 decimal place, e.g. 12.5.) NIKE, INC. Condensed Balance Sheet May 31, 2007 $ (in millions) $8,076 1,678 934 $10,688

Assets Current assets

Percent
75.56 15.70 8.74 100.00

% % % %

Property, plant and equipment (net) Other assets Total assets Liabilities and stockholders' equity Current liabilities Long-term liabilities Stockholders' equity Total liabilities and stockholder's equity

$2,584 1,079 7,025 $10,688

24.18 10.10 65.73 100.00

% % % %

Question 2 Here are the comparative income statements of Winfrey Corporation. WINFREY CORPORATION Comparative Income Statements For the Years Ended December 31 2010 Net sales $598,000 477,000 Cost of goods sold Gross profit $121,000 80,000 Operating expenses $41,000 Net income

2009 $520,000 450,000 $70,000 45,000 $25,000

Correct.

Complete the horizontal analysis of the income statement data for Winfrey Corporation using 2009 as a base. (Round all percentages to 1 decimal place, e.g. 12.5.) WINFREY CORPORATION Condensed Income Statements For the Years Ended December 31 Increase or (Decrease) During 2010 2010 2009 Amount Percentage Net sales Cost of goods sold Gross profit Operating expenses Net income $598,000 477,000 121,000 80,000 $41,000 $520,000 450,000 70,000 45,000 $25,000 $ $
78,000 27,000 51,000 35,000 16,000 15.00 6.00 72.86 77.78 64.00

% % % % %

Correct.

Complete the vertical analysis of the income statement data for Winfrey Corporation for both years.

(Round all percentages to 1 decimal place, e.g. 12.5.) WINFREY CORPORATION Condensed Income Statements For the Years Ended December 31 2010 $ Percent $ Net sales Cost of goods sold Gross profit Operating expenses Net income $598,000 477,000 121,000 80,000 $41,000
100.00 79.77 20.23 13.38 6.86

2009 Percent
100.00 86.54 13.46 8.65 4.81

% % % % %

$520,000 450,000 70,000 45,000 $25,000

% % % % %

Question 3 Correct.

Armada Company has these comparative balance sheet data: ARMADA COMPANY Balance Sheets December 31 Cash Receivables (net) Inventories Plant assets (net) 2010 $25,000 65,000 60,000 200,000 $350,000 $50,000 100,000 140,000 60,000 $350,000 2009 $30,000 60,000 50,000 180,000 $320,000 $60,000 100,000 120,000 40,000 $320,000

Accounts payable Mortgage payable (15%) Common stock, $10 par Retained earnings

Additional information for 2010: 1. 2. 3. 4. 5. Net income was $25,000. Sales on account were $375,000. Sales returns and allowances amounted to $25,000. Cost of goods sold was $198,000. Net cash provided by operating activities was $48,000. Capital expenditures were $25,000, and cash dividends were $18,000.

Compute the following ratios at December 31, 2010. (Round to 3 decimal places, e.g. 2.515.) Current Receivables turnover
3.00 5.60

:1 times

Average collection period Inventory turnover Days in inventory Cash debt coverage Current cash debt coverage Free cash flow $

65.18 3.60 101.39 0.31 0.873 5,000.00

days times days times times

Show Work is REQUIRED for this question; access the WhiteBoard application by clicking this

WileyPLUS Assignment Week Three

Question 1 Correct. In January, Reyes Tool & Dye requisitions raw materials for production as follows: Job 1 $900, Job 2 $1,200, Job 3 $700, and general factory use $600. During January, time tickets show that the factory labor of $5,000 was used as follows: Job 1 $1,200, Job 2 $1,600 Job 3 $1,400, and general factory use $800. Prepare the job cost sheets for each of the three jobs. (If answer is zero, please enter 0, do not leave any fields blank.) Job 1 Direct Materials
900 0

Date 1/31 1/31 Date 1/31 1/31 Date 1/31 1/31 Question 2 Correct.

Direct Labor
0 1,200

Job 2 Direct Materials

1,200 0

Direct Labor
0 1,600

Job 3 Direct Materials

700 0

Direct Labor
0 1,400

Doc Gibbs has prepared the following list of statements about process cost accounting. Identify each statement as true or false.

1.

Process cost systems are used to apply costs to similar products that are mass-produced in a continuous fashion.
True resp_0

2. 3.

A process cost system is used when each finished unit is indistinguishable from another.
True resp_0

Companies that produce soft drinks, motion pictures, and computer chips would all use process cost accounting.

False
4. 5. 6.
False resp_0

resp_0

In a process cost system, costs are tracked by individual jobs. Job order costing and process costing track different manufacturing cost elements.
False resp_0

Both job order costing and process costing account for direct materials, direct labor, and manufacturing overhead. True resp_0 Costs flow through the accounts in the same basic way for both job order costing and process costing.
True resp_0

7.

8. 9.

In a process cost system, only one work in process account is used.

False resp_0

In a process cost system, costs are summarized in a job cost sheet. False resp_0

10. In a process cost system, the unit cost is total manufacturing costs for the period divided by the units produced during the period. True resp_0

Question 3 Correct. Peter Catalano's Verde Vineyards in Oakville, California produces three varieties of wine: Merlot, Viognier, and Pinot Noir. His winemaster, Kyle Ward, has identified the following activities as cost pools for accumulating overhead and assigning it to products. For each of Verde's fifteen activity cost pools, identify a probable cost driver that might be used to assign overhead costs to its three wine varieties. 1. Culling and replanting. Dead or overcrowded vines are culled, and new vines are planted or relocated. (Separate vineyards by variety.) Tying. The posts and wires are reset, and vines are tied to the wires for the dormant season. Trimming. At the end of the harvest the vines are cut and trimmed back in preparation for the next season. Spraying. The vines are sprayed with chemicals for protection against insects and fungi. Harvesting. The grapes are hand-picked, placed in carts, and transported to the crushers.
Labor hours resp_0 Labor hours resp_0 Labor hours resp_0 Gallons of chemicals resp_0 Number of cartfuls or labor hours resp_0

2.

3.

4.

5.

6.

Stemming and crushing. Cartfuls of bunches of grapes of each variety are separately loaded into machines which remove stems and gently crush the grapes. Pressing and filtering. The crushed grapes are transferred to presses which mechanically remove the juices and filter out bulk and impurities. Fermentation. The grape juice, by variety, is fermented in either stainless-steel tanks or oak barrels. Aging. The wines are aged in either stainless-steel tanks or oak barrels for one to three years depending on variety.

Number of cartfuls resp_0 Gallons of juice resp_0 Gallons of juice resp_0 Gallons of w ine or months of aging resp_0 Number of bottles

7.

8.

9.

10. Bottling and corking. Bottles are machine-filled and corked.

resp_0

Labeling and boxing. Each bottle is labeled, as is each nine11. bottle case, with the name of the vintner, vintage, and variety. 12. Storing. Packaged and boxed bottles are stored awaiting shipment. Shipping. The wine is shipped to distributors and private retailers.

Number of bottles resp_0 Number of boxes resp_0 Number of shipments resp_0 Number of gallons processed

13.

14. Heating and air-conditioning of plant and offices.

resp_0

Maintenance of buildings and equipment. Printing, repairs, 15. replacements, and general maintenance are performed in the off-season. Click here if you would like to Show Work for this question

Number of gallons processed resp_0

WileyPLUS Assignment Week Four

Question 1 Correct. Monthly production costs in Pesavento Company for two levels of production are as follows. Cost 3,000 units 6,000 units Indirect labor $10,000 $20,000 Supervisory salaries 5,000 5,000 Maintenance 4,000 7,000 Indicate which costs are variable, fixed, and mixed. Indirect labor Supervisory salaries Maintenance Question 2
Variable cost Fixed cost Mixed cost resp_0 resp_0 resp_0

Correct. Bruno Manufacturing Inc. has sales of $2,200,000 for the first quarter of 2010. In making the sales, the company incurred the following costs and expenses. Variable Fixed Cost of goods sold $920,000 $440,000 Selling expenses 70,000 45,000 Administrative expenses 86,000 98,000 Complete the CVP income statement for the quarter ended March 31, 2010. BRUNO MANUFACTURING INC. CVP Income Statement
For the Quarter Ended March 31, 2010 Sales Variable costs resp_0 resp_0 resp_0

2,200,000 1,076,000 1,124,000

Contribution Margin
Fixed costs resp_0

583,000

Net income Question 3 Correct.

541,000

For Dousmann Company actual sales are $1,200,000 and break-even sales are $840,000. Compute the following (a) the margin of safety in dollars and (b) the margin of safety ratio. Margin of safety in dollars Margin of safety ratio Question 4 In the month of June, Angela's Beauty Salon gave 3,500 haircuts, shampoos, and permanents at an average price of $30. During the month, fixed costs were $16,800 and variable costs were 80% of sales. $
30 360,000

Correct. Determine the contribution margin in dollars, per unit, and as a ratio. Contribution margin in dollars Contribution margin per unit Contribution margin ratio $ $
20 21,000 6

Correct. Using the contribution margin technique, compute the break-even point in dollars and in units. Break-even point in dollars Break-even point in units $
84,000 2,800