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ACC 206 Entire Course (New)

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ACC 206 Week 1 Assignment Chapter One Problems

ACC 206 Week 1 DQ1 Cash Flows Information

ACC 206 Week 1 DQ2 Apples Cash Flow

ACC 206 Week 2 Assignment Chapter !wo an" !hree Problems

ACC 206 Week 2 DQ1 #to$k Feat%res

ACC 206 Week 2 DQ2 &ole of 'anagement A$$o%nting

ACC 206 Week 2 (o%rnal Instit%te of 'anagement A$$o%nting

ACC 206 Week ) Assignment Chapter Fo%r an" Fi*e Problems

ACC 206 Week ) DQ1 Iss%es in Costing

ACC 206 Week ) DQ2 C+P an" the Airline In"%str,

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ACC 206 Week ) (o%rnal -ershe, Compan,

ACC 206 Week . Assignment Chapter #i/ an" #e*en Problems

ACC 206 Week . DQ1 Iss%es in #tan"ar" Costs an" %"geting

ACC 206 Week . DQ2 Fle/ible %"gets

ACC 206 Week Assignment Chapter ight Problems

ACC 206 Week Assignment Final Paper

ACC 206 Week DQ1 3ong4term De$ision 'aking

ACC 206 Week DQ2 &esponsibilities in 'anagement A$$o%nting

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ACC 206 Week 1 Assignment Chapter One Probems (Ash)


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Ch 1 Criti$al !hinking Q%estion 5

Answer the following %estions5



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Wh, are non$ash transa$tions7 s%$h as the e/$hange of $ommon sto$k

a b%il"ing7 in$l%"e" on a statement of $ash flows8 -ow are these

non$ash transa$tions "is$lose"8

Chapter 1 /er$ise 15

19 Classifi$ation of a$ti*ities

Classif, ea$h of the following transa$tions as arising from an

operating :O;7 in*esting :I;7 finan$ing :F;7 or non$ash

in*esting>>>>>>> &e$ei*e" ?@07000 from the sale of lan"9

b9 >>>>>>>> &e$ei*e" ?)7200 from $ash sales9

$9 >>>>>>>> Pai" a ?7000 "i*i"en"9

"9 >>>>>>>> P%r$hase" ?@7@00 of mer$han"ise for $ash9

e9 >>>>>>>> &e$ei*e" ?1007000 from the iss%an$e of $ommonsto$k9

f9 >>>>>>>> Pai" ?17200 of interest on a note pa,able9

g9 >>>>>>>> A$%ire" a new laser printer b, pa,ing ?609

h9 >>>>>>>> A$%ire" a ?.007000 b%il"ing b, signing a ?.007000

mortgage note9

Chapter 1 /er$ise .5

.9 O*er*iew of "ire$t an" in"ire$t metho"s


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*al%ate the $omments that follow as being !r%e or False9 If the

$omment is false7 briefl, e/plain wh,9

a9 oth the "ire$t an" in"ire$t metho"s will pro"%$e the same $ash

flow from operating a$ti*ities9

b9 Depre$iation e/pense is a""e" ba$k to net in$ome when the

in"ire$t metho" is %se"9

$9 One of the a"*antages of %sing the "ire$t metho" rather than the

in"ire$t metho" is that larger $ash flows from finan$ing a$ti*ities will

be reporte"9

"9 !he $ash pai" to s%ppliers is normall, "is$lose" on the

statement of $ash flows when the in"ire$t metho" of statement

preparation is emplo,e"9

e9 !he "ollar $hange in the 'er$han"ise In*entor, a$$o%nt appears

on the statement of $ash flows onl, when the "ire$t metho" of

statement preparation is %se"9

Chapter 1 /er$ise 65

69 %ipment transa$tion an" $ash flow reporting

=ew e%ipment p%r$hase" "%ring 20/. totale" ?2@070009 !he 20/.in$ome statement "is$lose" e%ipment "epre$iation e/pense of

?.17000 an" a ?7000 loss on the sale of e%ipment9

a9 Determine the $ost an" a$$%m%late" "epre$iation of the

e%ipment sol" "%ring 20B.9

b9 Determine the selling pri$e of the e%ipment sol"9


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$9 #how how the sale of e%ipment wo%l" appear on a statement of

$ash flows prepare" b, %sing the in"ire$t metho"9

Chapter 1 Problem )5

)9 Cash flow information5 Dire$t an" in"ire$t metho"s

!he $omparati*e ,ear4en" balan$e sheets of #ign raphi$s7 In$97

re*eale" the following a$ti*it, in the $ompan,s $%rrent a$$o%nts5

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ACC 206 Week 1 !" 1 Cash #ows $n%ormation (Ash)


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Cash Flows Information

What information "oes the $ash flow statement pro*i"e that ,o%

$annot see in the other finan$ial statements :in$ome statement7

balan$e sheet7 owners e%it,;8 What elements of the $ash flow

statement "o ,o% think are most important for $ompan, management

to monitor an" wh,8 Is this "ifferent for in*estors8%i"e" &esponse5

&e*iew ,o%r peers postings9 &espon" to at least two of $lassmates7

letting them know whether ,o% agree with the %se of the $ash flow

statement an" wh,9 A""itionall,7 share elements of the $ash flow

statement that ,o% see as being the greatest interest to in*estors :as

oppose" to internal management; an" wh,9**********************************************************************************



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ACC 206 Week 1 !" 2 Appe&s Cash #ow (Ash)


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o to http5


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work where appropriate :lea*ing the $al$%lations within /$el $ells is

a$$eptable;9 #a*e the "o$%ment7 an" s%bmit it in the appropriate week

%sing the Assignment #%bmission b%tton9

Chapter 2 /er$ise 1

19 Iss%an$e of sto$k

Prepare Jo%rnal entries to re$or" the iss%an$e of 1007000 shares of

$ommon sto$k at ?20 per share for ea$h of the following in"epen"ent

$ases5

a9 (a$kson Corporation has $ommon sto$k with a par *al%e of ?1

per share9

b9 &o,al Corporation has no4par $ommon with a state" *al%e of ?

per share9

$9 Fren$h Corporation has no4par $ommonK no state" *al%e has

been assigne"

Chapter 2 /er$ise )

)9 Anal,sis of sto$khol"ers e%it,

#tar Corporation iss%e" both $ommon an" preferre" sto$k "%ring

20B69 !he sto$khol"ers e%it, se$tions of the $ompan,s balan$e

sheets at the en" of 20B6 an" 20B follow9

20B6


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20B

Preferre" sto$k7 ?100 par *al%e7 10L

?@07000

?007000

Common sto$k7 ?10 par *al%e

27)07000

17H07000

Pai"4in $apital in e/$ess of par *al%e

Preferre"

2.7000

M

Common

.76207000

)76007000

&etaine" earnings

@7.H07000

67207000

!otal sto$khol"ers e%it,

?1670..7000

?127HH07000


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a9 Comp%te the n%mber of preferre" shares that were iss%e" "%ring

20B69

b9 Cal$%late the a*erage iss%e pri$e of the $ommon sto$k sol" in

20B69

$9 , what amo%nt "i" the $ompan,s pai"4in $apital in$rease

"%ring 20B68

"9 Di" #tars total legal $apital in$rease or "e$rease "%ring 20B68

, what amo%nt8

Chapter 2 Problem 1

19 on" $omp%tations5 #traight4line amortiGation

#o%thlake Corporation iss%e" ?007000 of @L bon"s on 'ar$h 17

20B19 !he bon"s pa, interest on 'ar$h 1 an" #eptember 1 an"

mat%re in 10 ,ears9 Ass%me the in"epen"ent $ases that follow9

NCase AM!he bon"s are iss%e" at 1009

NCase M!he bon"s are iss%e" at 69

NCase CM!he bon"s are iss%e" at 109

#o%thlake %ses the straight4line metho" of amortiGation9


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Instr%$tions5

Complete the following table5

Case A

Case

Case C

Cash inflow on the iss%an$e "ate >>>>>>>

>>>>>>>

>>>>>>>

!otal $ash o%tflow thro%gh mat%rit,

>>>>>>>

>>>>>>>

>>>>>>>

!otal borrowing $ost o*er the life of the bon" iss%e

>>>>>>>

>>>>>>>

>>>>>>>

Interest e/pense for the ,ear en"e" De$ember )17 20B1

>>>>>>>

>>>>>>>

>>>>>>>


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AmortiGation for the ,ear en"e" De$ember )17 20B1

>>>>>>>

>>>>>>>

>>>>>>>

namortiGe" premi%m as of De$ember )17 20B1

>>>>>>>

>>>>>>>

>>>>>>>

namortiGe" "is$o%nt as of De$ember )17 20B1

>>>>>>>

>>>>>>>

>>>>>>>

on" $arr,ing *al%e as of De$ember )17 20B1

>>>>>>>

>>>>>>>

>>>>>>>

Chapter ) /er$ise 1

19 Pro"%$t $osts an" perio" $osts

!he $osts that follow were e/tra$te" from the a$$o%nting re$or"s of

se*eral "ifferent man%fa$t%rers5

19 Weekl, wages of an e%ipment maintenan$e worker


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29 'arketing $osts of a soft "rink bottler

)9 Cost of sheet metal in a -on"a a%tomobile

.9 Cost of presi"ents s%bs$ription to Fort%ne magaGine

9 'onthl, operating $osts of poll%tion $ontrol e%ipment %se" in

a steel mill

69 Weekl, wages of a seamstress emplo,e" b, a Jeans maker

H9 Cost of $ompa$t "is$s :CDs; for newl, re$or"e" releases of

&%sh7 ill, (oel7 an" r,an A"ams

a9 Determine whi$h of these $osts are pro"%$t $osts an" whi$h are

perio" $osts9

b9 For the pro"%$t $osts onl,7 "etermine those that are easil, tra$e"

to the finishe" pro"%$t an" those that are not9

Chapter ) /er$ise 2

29 Definitions of man%fa$t%ring $on$epts

Interstate 'an%fa$t%ring pro"%$es brass fasteners an" in$%rre" the

following $osts for the ,ear J%st en"e"5

'aterials an" s%pplies %se"

rass ?H7000&epair parts 167000

'a$hine l%bri$ants 7000

Wages an" salaries 'a$hine operators 12@7000

Pro"%$tion s%per*isors 6.7000

'aintenan$e personnel .17000


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Other fa$tor, o*erhea" +ariable )7000

Fi/e" .67000

#ales $ommissions 207000

Comp%te5

a9 !otal "ire$t materials $ons%me"

b9 !otal "ire$t labor

$9 !otal prime $ost

"9 !otal $on*ersion $ost

Chapter ) /er$ise

9 #$he"%le of $ost of goo"s man%fa$t%re"7 in$ome statement

!he following information was taken from the le"ger of (efferson

In"%stries7 In$95

Dire$t labor

?@7000

A"ministrati*e e/penses

?7000

#elling e/penses

).7000

Work in9 pro$ess


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#ales

)007000

(an9 1

27000

Finishe" goo"s

De$9 )1

217000

(an9 1

117000

Dire$t material p%r$hases

@@7000

De$9 )1

1)17000

Depre$iation5 fa$tor,

1@7000

&aw :"ire$t; materials on han"

In"ire$t materials %se"

107000


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(an9 1

)17000

In"ire$t labor

2.7000

De$9 )1

.07000

Fa$tor, ta/es

@7000

Fa$tor, %tilities

117000Prepare the following5

a9 A s$he"%le of $ost of goo"s man%fa$t%re" for the ,ear en"e"

De$ember )19

b9 An in$ome statement for the ,ear en"e" De$ember )19

Chapter ) Problem )

)9 'an%fa$t%ring statements an" $ost beha*ior

!ampa Fo%n"r, began operations "%ring the $%rrent ,ear7

man%fa$t%ring *ario%s pro"%$ts for in"%strial %se9 One s%$h pro"%$t

is light4ga%ge al%min%m7 whi$h the $ompan, sells for ?)6 per roll9

Cost information for the ,ear J%st en"e" follows9


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Per nit

+ariable Cost

Fi/e" Cost

Dire$t materials

?.90

? M

Dire$t labor

69

M

Fa$tor, o*erhea"

07000

#elling

M

H07000

A"ministrati*e

M

1)7000


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Pro"%$tion an" sales totale" 207000 rolls an" 1H7000 rolls7

respe$ti*el, !here is no work in pro$ess9 !ampa $arries its finishe"goo"s in*entor, at the a*erage %nit $ost of pro"%$tion9

Instr%$tions5

a9 Determine the $ost of the finishe" goo"s in*entor, of light4

ga%ge al%min%m9

b9 Prepare an in$ome statement for the $%rrent ,ear en"e"

De$ember )1

$9 On the basis of the information presente"5

19 Does it appear that the $ompan, pa,s $ommissions to its sales

staff8 /plain9

29 What is the likel, effe$t on the ?.90 %nit $ost of "ire$t

materials if ne/t ,ears pro"%$tion in$reases8 Wh,8

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ACC 206 Week 2 !" 1 tok #eatures (Ash)


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#to$k Feat%res

19 What is $allable preferre" sto$k8 Wh, "o $orporations iss%e s%$h

sto$k8 i*en the "ifferent feat%res that are asso$iate" with sto$k

:$allable7 $%m%lati*e7 preferre"7 et$9;7 what t,pe of sto$k wo%l" ,o%

want to b%, personall, an" wh,8

%i"e" &esponse 5

&e*iew ,o%r peers posts9 &espon" to at least two of ,o%r $lassmates7

letting them know if ,o% agree with their t,pe of "esire" sto$k an"

whether ,o%r answer wo%l" $hange :an" wh,; base" on5

a9 Different e$onomi$ $on"itions

b9 #tate of the $ompan, :if the $ompan, is in a growth phase *ers%s a

mat%re state;9

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ACC 206 Week 2 !" 2 +oe o% ,anagement Aounting (Ash)


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&ole of 'anagement A$$o%nting

&e*iew the roles of management a$$o%nting within a $ompan,9 What

is the most important role of management a$$o%nting8 -ow is that

"ifferent than finan$ial a$$o%nting8

%i"e" &esponse5



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&e*iew ,o%r peers responsees9 &espon" to at least two of ,o%r peers7

a""ing at least two a""itional areas that management a$$o%ntants

fo$%s on that the a%thor "i"nt in$l%"e

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ACC 206 Week 2 -ourna $nstitute o% ,anagement Aounting (Ash)


www.acc206aid.com

Instit%te of 'anagement A$$o%nting

While there are man, instan$es of o*erlap between finan$ial

a$$o%nting an" management a$$o%nting7 ea$h gro%ps primar, fo$%s

is "ifferent9 &e*iew the Instit%te of 'anagement A$$o%ntings :I'A;

website7 spe$ifi$all, the EAbo%t I'A an" the E&eso%r$es an"

P%bli$ations se$tions of the website9 Are ,o% s%rprise" b, the topi$s

that management a$$o%ntants are fo$%sing on8 Wh, or wh, not8

What interests ,o% more7 finan$ial a$$o%nting or management

a$$o%nting8

Caref%ll, re*iew the ra"ing &%bri$ for the $riteria that will be %se"

to e*al%ate ,o%r Jo%rnal entr,9

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ACC 206 Week . Assignment Chapter #our an #i/e Probems (Ash)


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Chapter . an" Problems

Please $omplete the following H e/er$ises below in either /$el or a

wor" "o$%ment :b%t m%st be single "o$%ment;9 o% m%st show ,o%r




Chapter . /er$ise )

)9 Cost flows an" o*erhea" appli$ation

Cle*elan" 'etals %ses a Job $ost s,stem an" applies fa$tor, o*erhea"

to pro"%$tion at a pre"etermine" rate of 1@0L of "ire$t labor $ost9

Data pertaining to re$ent operations follow9

N(ob no9 6)6 was the onl, Job in pro$ess on

(an%ar, 1 of the $%rrent ,ear9 !he Work in Pro$ess a$$o%nt $ontaine"

a ?2.7600 balan$e on this "ate9

N(obs no9 6)H7 6)@7 an" 6) were starte" "%ring

(an%ar,9

N!otal "ire$t material re%isitions an" "ire$tlabor

in$%rre" "%ring (an%ar, amo%nte" to ?@7200 an" ?11.7007

respe$ti*el,9



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N!he onl, Job that remaine" in pro$ess on (an%ar,

)1 was Job no9 6)@7 with $osts of ?17000 for "ire$t materials an"

?207000 for "ire$t labor9

a9 Comp%te the total $ost of the work in pro$ess in*entor, on

(an%ar, )19

b9 Comp%te the $ost of Jobs $omplete" "%ring (an%ar,7 an" present

the proper Jo%rnal entr, to refle$t Job $ompletion9

Chapter . /er$ise H

H9 O*erhea" appli$ation5 Working ba$kwar"

!he !owson 'an%fa$t%ring Corporation applies o*erhea" on the basis

of ma$hine ho%rs9 !he following "i*isional information is presente"

for ,o%r re*iew5

Di*ision A

Di*ision

A$t%al ma$hine ho%rs

22700

8

stimate" ma$hine ho%rs

207000


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8

O*erhea" appli$ation rate

?.90

?900

A$t%al o*erhea"

?1107000

8

stimate" o*erhea"

8

?07000

Applie" o*erhea"

8

?@67000

O*er4 :%n"er4; applie" o*erhea"

8

?6700

Fin" the %nknowns for ea$h of the "i*isions9

Chapter . Problem 2

29 Comp%tations %sing a Job or"er s,stem


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eneral Corporation emplo,s a Job or"er $ost s,stem9 On 'a, 1 the

following balan$es were e/tra$te" from the general le"gerK

Work in pro$ess ? )7200

Finishe" goo"s @6700

Cost of goo"s sol" 12@7H00

Work in Pro$ess $onsiste" of two Jobs7 no9 101 :?207.00; an" no9 10)

:?1.7@00;9 D%ring 'a,7 "ire$t materials re%isitione" from thestoreroom amo%nte" to ?67007 an" "ire$t labor in$%rre" totale"

?11.7009 !hese fig%res are s%b"i*i"e" as follows5

Dire$t 'aterials

Dire$t 3abor

(ob =o9

Amo%nt

(ob =o9

Amo%nt

101

?7000


24/50

101

?H7@00

11

1700

10)

207@00

116

)67200

11

.27000

Other

)7@00

116


25/50

1@7000

?6700

Other

2700

?11.700

(ob no9 11 was the onl, Job in pro$ess at the en" of the month9 (ob

no9 101 an" three other Jobs were sol" "%ring 'a, at a profit of

20L of $ost9 !he other Jobs $ontaine" material an" labor $harges of?217000 an" ?1H7.007 respe$ti*el,9

eneral applies o*erhea" "ail, at the rate of 10L of "ire$t labor $ost

as labor s%mmaries are poste" to Job or"ers9 !he firms fis$al ,ear

en"s on 'a, )19


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Instr%$tions5

a9 Comp%te the total o*erhea" applie" to pro"%$tion "%ring 'a,9

b9 Comp%te the $ost of the en"ing work in pro$ess in*entor,9

$9 Comp%te the $ost of Jobs $omplete" "%ring 'a,9

"9 Comp%te the $ost of goo"s sol" for the ,ear en"e" 'a, )19

Chapter /er$ise 1

19 -igh4low metho"

!he following $ost "ata pertain to 20B6 operations of -eritage

Pro"%$ts5

Q%arter 1

Q%arter 2

Q%arter )

Q%arter .

#hipping $osts

?@7200

?@7620


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?60712

?7.00

Or"ers shippe"

120

1.0

1H

10

!he $ompan, %ses the high4low metho" to anal,Ge $osts9

a9 Determine the *ariable $ost per or"er shippe"9

b9 Determine the fi/e" shipping $osts per %arter9

$9 If present $ost beha*ior patterns $ontin%e7 "etermine total

shipping $osts for 20BH if a$ti*it, amo%nts to H0 or"ers9

Chapter /er$ise 2

!he treas%rer anti$ipates the following $osts for the e*ent7 whi$h will

be hel" at the &egen$, -otel5

&oom rental ?)00

Dinner $ost :per person; 2

Chartere" b%ses 00

Fa*ors an" so%*enirs :per person;

an" 00


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a$h person wo%l" pa, ?.0 to atten"K 200 atten"ees are e/pe$te"9

a9 Will the e*ent be profitable for the sororit,8 #how

$omp%tations9

b9 -ow man, people m%st atten" for the sororit, to break e*en8

$9 #%ppose the sororit, en$o%rage" its members to "ri*e to the

hotel an" "i" not $harter the b%ses9 F%rther7 a planne" men% $hange

will re"%$e the $ost per meal b, ?29 If ea$h member will still be

$harge" ?.07 $omp%te the $ontrib%tion margin per person9

Chapter /er$ise )

)9 reak4e*en an" other C+P relationships

Ce"ars -ospital has a*erage re*en%e of ?1@0 per patient "a,9 +ariable

$osts are ?. per patient "a,K fi/e" $osts total ?.7)207000 per ,ear9

a9 -ow man, patient "a,s "oes the hospital nee" to break e*en8

b9 What le*el of re*en%e is nee"e" to earn a target in$ome of

?.070008

$9 If *ariable $osts "rop to ?)6 per patient "a,7 what in$rease in

fi/e" $osts $an be tolerate" witho%t $hanging the break4e*en point as

"etermine" in part :a;8

Chapter Problem 6

69 Dire$t an" absorption $osting


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!he information that follows pertains to Cons%mer Pro"%$ts for the

,ear en"e" De$ember )17 20B69

In*entor,7 1


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?1)67000

!he %nit selling pri$e is ?269 Ass%me that $osts ha*e been stable in

re$ent ,ears9

Instr%$tions5

a9 Comp%te the n%mber of %nits in the en"ing in*entor,9

b9 Cal$%late the $ost of a %nit ass%ming %se of5

19 Dire$t $osting9

29 Absorption $osting9

$9 Prepare an in$ome statement for the ,ear en"e" De$ember )17

20B67 b, %sing "ire$t $osting9

"9 Prepare an in$ome statement for the ,ear en"e" De$ember )17

20B67 b, %sing absorption $osting9

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ACC 206 Week . !" 1 $ssues in Costing (Ash)


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Iss%es in Costing



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Des$ribe three iss%es


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an" e/plain how ,o%r a""itional fa$tors infl%en$e the break4e*en

point9s

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ACC 206 Week . -ourna ershe Compan (Ash)


www.acc206aid.com

-ershe, Compan,

o the -ershe, website to learn how to make -ershe, $ho$olate9

&e*iew the pro$ess an" take a look at some of the *i"eos9 Pa, parti$%lar attention to the pro$ess steps of milling an" pressing7

mi/ing the ingre"ients7 an" refining9

In at least one paragraph7 "es$ribe the $osting s,stem that ,o% wo%l"

re$ommen" -ershe, %se to a$$o%nt for its $ost of goo"s sol" an"

wh,9 In$l%"e a few pro"%$t $osts ,o% think wo%l" be tra$eable7 whi$h

$osts sho%l" be allo$ate"7 an" how -ershe, sho%l" a$$o%nt an" appl,

the man%fa$t%ring o*erhea" $osts9


to e*al%ate ,o%r Jo%rnal entr,9



33/50

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ACC 206 Week 3 Assignment Chapter i4 an e/en Probems (Ash)


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Please $omplete the following @ e/er$ises below in either /$el or a

wor" "o$%ment :b%t m%st be single "o$%ment;9 o% m%st show ,o%r




Chapter 6 /er$ise 2

29 #$he"%le of $ash $olle$tions

#%garlan" Compan, sells a single pro"%$t an" anti$ipates opening a

new fa$ilit, in Charlotte on 'a, 1 of the $%rrent ,ear9 /pe$te" sales

"%ring the first three months of a$ti*it, are5 'a,7 ?607000K (%ne7

?@07000K an" (%l,7 ?@70009 !hirt, per$ent of all sales are for $ashK the

remaining H0L are on a$$o%nt9 Cre"it sales ha*e the following$olle$tion pattern5

Chapter 6 /er$ise .

.9 Pro"%$tion an" $ash4o%tla, $omp%tations

&P&7 In$97 anti$ipates that 1207000 %nits of pro"%$t T will be sol"

"%ring 'a,9 a$h %nit of pro"%$t T re%ires fo%r %nits of raw



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material A9 A$t%al in*entories as of 'a, 1 an" b%"gete" in*entories

as of 'a, )1 follow9

Chapter 6 /er$ise

9 Abbre*iate" $ash b%"getK finan$ing emphasis

An abbre*iate" $ash b%"get for ig Ch%$k nterprises follows9

Chapter 6 Problem )

)9 Comprehensi*e b%"geting

!he balan$e sheet of Watson Compan, as of De$ember )17 20B17

follows9

Chapter H /er$ise )

)9 +arian$es for "ire$t materials an" "ire$t labor

anner Compan, man%fa$t%res flags of *ario%s $o%ntries9 a$h flag

has a stan"ar" of eight s%are feet of fabri$ an" three ho%rs of "ire$t

labor time9 Information abo%t re$ent pro"%$tion a$ti*it, follows9

Chapter H /er$ise

9 O*erhea" *arian$es

=o*a 'an%fa$t%ring applies fa$tor, o*erhea" to pro"%$ts on the basis

of "ire$t labor ho%rs9 At the beginning of the $%rrent ,ear7 the

$ompan,s a$$o%ntant ma"e the following estimates for the

forth$oming perio"5

U stimate" *ariable o*erhea"5 ?007000

U stimate" fi/e" o*erhea"5 ?.007000


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U stimate" "ire$t labor ho%rs5 .07000

It is now 12 months later9 A$t%al total o*erhea" in$%rre" in the

man%fa$t%re of H700 %nits amo%nte" to ?@71009 A$t%al labor ho%rs

totale" )7@009 Ass%ming a "ire$t labor stan"ar" of fi*e ho%rs per

finishe" %nit7 $al$%late the following5

a9 +ariable o*erhea" effi$ien$, *arian$e

b9 Fi/e" o*erhea" *ol%me *arian$e

$9 O*erhea" spen"ing *arian$e

Chapter H Problem 1

19 P264A1 asi$ fle/ible b%"geting :39O9 2;

Centron7 In$97 has the following b%"gete" pro"%$tion $osts5

Dire$t materials

?09.0 per %nit

Dire$t labor

19@0 per %nit

+ariable fa$tor, o*erhea"

2920 per %nit

Fi/e" fa$tor, o*erhea"

#%per*ision

?2.7000

'aintenan$e


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1@7000

Other

127000

!he $ompan, normall, man%fa$t%res between 207000 an" 27000

%nits ea$h %arter9 #ho%l" o%tp%t e/$ee" 27000 %nits7 maintenan$e

an" other fi/e" $osts are e/pe$te" to in$rease b, ?67000 an" ?.7007

respe$ti*el,9

D%ring the re$ent %arter en"e" 'ar$h )17 Centron pro"%$e" 2700%nits an" in$%rre" the following $osts5

Dire$t 'aterials

?107H10

Dire$t 3abor

.H71H

+ariable fa$tor, o*erhea"

17.0

Fi/e" fa$tor, o*erhea"

#%per*ision


37/50

2.700

'aintenan$e

2)7H00

Other

167@00

!otal pro"%$tion $osts

?1H.7@2

Instr%$tions5

a9 Prepare a fle/ible b%"get for 2070007 227007 an" 27000 %nits of

a$ti*it,9


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b9 Was Centrons e/perien$e in the %arter $ite" better or worse

than anti$ipate"8 Prepare an appropriate performan$e report an"

e/plain ,o%r answer9

$9 /plain the benefit of %sing fle/ible b%"gets :as oppose" to

stati$ b%"gets; in the meas%rement of performan$e9

Chapter H Problem

9 P264) #traightforwar" *arian$e anal,sis :39O9 ;

Arrow nterprises %ses a stan"ar" $osting s,stem9 !he stan"ar" $ostsheet for pro"%$t no9 . follows9

**********************************************************************************

ACC 206 Week 3 !" 1 $ssues in tanar Costs an 5ugeting (Ash)


www.acc206aid.com

Iss%es in #tan"ar" Costs an" %"geting

&e*iew the #tan"ar" $osts5 wake %p an" smell the $offee9arti$le9

When e*al%ating performan$e7 man, organiGations $ompare $%rrent

res%lts with the a$t%al res%lts of pre*io%s a$$o%nting perio"s9 Is an

organiGation that follows this approa$h likel, to en$o%nter an,

problems8 /plain9



39/50

%i"e" &esponse5

&e*iew ,o%r peers posts an" respon" to at least two of ,o%r

$lassmates9 Des$ribe how Job or"er $osting7 pro$ess $osting7 or

a$ti*it, base" $osting $o%l" resol*e or e/a$erbate the iss%es ,o%r

$lassmates "is$%sse" in their initial posts9

**********************************************************************************

ACC 206 Week 3 !" 2 #e4ibe 5ugets (Ash)


www.acc206aid.com

Fle/ible b%"gets pro*i"e "ifferent information than stati$ b%"gets9

Dis$%ss some of these "ifferen$es9 Is a fle/ible b%"get alwa,s better8

Are there times when ,o%" re$ommen" %sing a stati$ b%"get o*er a

fle/ible b%"get8

%i"e" &esponse5

&e*iew ,o%r peers posts an" respon" to at least two of ,o%r

$lassmates9 Dis$%ss whether ,o% agree or "isagree with the %ses of a

fle/ible b%"get an" wh,9

**********************************************************************************

ACC 206 Week Assignment Chapter Eight Probems (Ash)




40/50

www.acc206aid.com

Please $omplete the following e/er$ises below in either /$el or awor" "o$%ment :b%t m%st be single "o$%ment;9 o% m%st show ,o%r




Chapter @ /er$ise 15

19 asi$ present *al%e $al$%lations

Cal$%late the present *al%e of the following $ash flows7 ro%n"ing to

the nearest "ollar5

a9 A single $ash inflow of ?127000 in fi*e ,ears7 "is$o%nte" at a

12L rate of ret%rn9

b9 An ann%al re$eipt of ?167000 o*er the ne/t 12 ,ears7 "is$o%nte"

at a 12L rate of ret%rn9

$9 A single re$eipt of ?17000 at the en" of ear 1 followe" b, a

single re$eipt of ?107000 at the en" of ear )9 !he $ompan, has a

10L rate of ret%rn9

"9 An ann%al re$eipt of ?@7000 for three ,ears followe" b, a single

re$eipt of ?107000 at the en" of ear .9 !he $ompan, has a 12L rate

of ret%rn9

Chapter @ /er$ise .5

.9 Cash flow $al$%lationsan" net present *al%e



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On (an%ar, 27 20B17 r%$e reene in*este" ?107000 in the sto$k

market an" p%r$hase" 00 shares of -eartlan" De*elopment7 In$9

-eartlan" pai" $ash "i*i"en"s of ?2960 per share in 20B1 an" 20B2K

the "i*i"en" was raise" to ?)910 per share in 20B)9 On De$ember )1720B)7 reene sol" his hol"ings an" generate" pro$ee"s of ?1)70009

reene %ses the net4present4 *al%e metho" an" "esires a 16L ret%rn

on in*estments9

a9 Prepare a $hronologi$al list of the in*estments $ash flows9 =ote5

reene is entitle" to the 20B) "i*i"en"9

b9 Comp%te the in*estments net present *al%e7 ro%n"ing$al$%lations to the nearest "ollar9

$9 i*en the res%lts of part :b;7 sho%l" reene ha*e a$%ire" the

-eartlan" sto$k8 riefl, e/plain9

Chapter @ e/er$ise 5

9 #traightforwar"net present *al%e an" internal rate of ret%rn

!he Cit, of e"for" is st%",ing a 6004a$re site on &o%te )6 for a

new lan"fill9 !he start%p $ost has been $al$%late" as follows5

P%r$hase $ost5 ?.0 per a$re

#ite preparation5 ?1H7000

!he site $an be %se" for 20 ,ears before it rea$hes $apa$it,9 e"for"7

whi$h shares a fa$ilit, in ath !ownship with other m%ni$ipalities7

estimates that the new lo$ation will sa*e ?.07000 in ann%al operating

$osts9

a9 #ho%l" the lan"fill be a$%ire" if e"for" "esires an @L ret%rn

on its in*estment8 se the net4present4*al%e metho" to "etermine,o%r answer9


42/50

Chapter @ Problem 15

19 #traightforwar" net4present4*al%e an" pa,ba$k $omp%tations

#!3 ntertainment is $onsi"ering the a$%isition of a sight4seeing

boat for s%mmer to%rs along the 'ississippi &i*er9 !he following

information is a*ailable5

Cost of boat

?007000

#er*i$e life

10 s%mmer seasons

Disposal *al%e at the en" of 10 seasons

?1007000

Capa$it, per trip

)00 passengers

Fi/e" operating $osts per season :in$l%"ing straight4line "epre$iation;

?1607000

+ariable operating $osts per trip

?17000

!i$ket pri$e

? per passenger


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All operating $osts7 e/$ept "epre$iation7 re%ire $ash o%tla,s9 On the

basis of similar operations in other parts of the $o%ntr,7 management

anti$ipates that ea$h trip will be sol" o%t an" that 1207000 passengers

will be $arrie" ea$h season9 Ignore in$ome ta/es9

Instr%$tions5

, %sing the net4present4*al%e metho"7 "etermine whether #!3

ntertainment sho%l" a$%ire the boat9 Ass%me a 1.L "esire" ret%rn

on all in*estments74 ro%n" $al$%lations to the nearest "ollar9

Chapter @ Problem .5

.9 %ipment repla$ement "e$ision

Col%mbia nterprises is st%",ing the repla$ement of some e%ipment

that originall, $ost ?H.70009 !he e%ipment is e/pe$te" to pro*i"e si/

more ,ears of ser*i$e if ?@7H00 of maJor repairs are performe" in two

,ears9 Ann%al $ash operating $osts total ?2H72009 Col%mbia $an sell

the e%ipment now for ?)67000K the estimate" resi"%al *al%e in si/

,ears is ?70009

=ew e%ipment is a*ailable that will re"%$e ann%al $ash operating

$osts to ?2170009 !he e%ipment $osts ?10)70007 has a ser*i$e life of

si/ ,ears7 an" has an estimate" resi"%al *al%e of ?1)70009 Compan,

sales will total ?.)07000 per ,ear with either the e/isting or the newe%ipment9 Col%mbia has a minim%m "esire" ret%rn of 12L an"

"epre$iates all e%ipment b, the straight4line metho"9

Instr%$tions5

a9 , %sing the net4present4*al%e metho"7 "etermine whether

Col%mbia sho%l" keep its present e%ipment or a$%ire the new


44/50

e%ipment9 &o%n" all $al$%lations to the nearest "ollar7 an" ignore

in$ome ta/es9

b9 Col%mbias management feels that the time *al%e of mone,

sho%l" be $onsi"ere" in all long4term "e$isions9 riefl, "is$%ss the

rationale that %n"erlies managements belief9

**********************************************************************************

ACC 206 Week Assignment #ina Paper (Ash)


www.acc206aid.com

Final Paper

Fo$%s of the Final Paper

o%*e J%st been hire" onto AC Compan, as the $orporate

$ontroller9 AC Compan, is a man%fa$t%ring firm that spe$ialiGes in

making $e"ar roofing an" si"ing shingles9 !he $ompan, $%rrentl, hasann%al sales of aro%n" ?192 million7 a 2L in$rease from the pre*io%s

,ear9 !he $ompan, has an aggressi*e growth target of rea$hing ?)

million ann%al sales within the ne/t ) ,ears9 !he CO has been tr,ing

to fin" a""itional pro"%$ts that $an le*erage the $%rrent AC

emplo,ee skillset as well as the man%fa$t%ring fa$ilities9



45/50

As the $ontroller of AC Compan,7 the CO has $ome to ,o% with a

new opport%nit, that hes been working on9 !he CO wo%l" like to

%se the some of the shingle s$rap materials to b%il" $e"ar "ollho%ses9

While this new pro"%$t line wo%l" a"" a""itional raw materials an" be more time4intensi*e to man%fa$t%re than the $e"ar shingles7 this

new pro"%$t line will be able to le*erage ACs e/isting

man%fa$t%ring fa$ilities as well as the $%rrent staff9 Altho%gh this

pro"%$t line will re%ire a""e" e/penses7 it will pro*i"e a""itional

re*en%e an" gross profit to help rea$h the growth targets9 !he CO is

rel,ing on ,o% to help "e$i"e how this proJe$t $an be affor"e"

Pro*i"e "etails abo%t the estimate" pro"%$t $osts7 what is nee"e" to break e*en on the proJe$t7 an" what le*el of ret%rn this pro"%$t is

e/pe$te" to pro*i"e9

In or"er to help o%t the CO7 ,o% nee" to prepare a si/4 to eight4page

report that will $ontain the following information :in$l%"ing e/hibits7

b%t e/$l%"ing ,o%r referen$es an" title page;9 &efer to thea$$ompan,ing /$el sprea"sheet :a*ailable thro%gh ,o%r online

$o%rse; for some spe$ifi$ $ost an" profit information to $omplete the

$al$%lations9

Final Paper #prea"sheet

I9 An o*erall risk profile of the $ompan, base" on $%rrent e$onomi$

an" in"%str, iss%es that it ma, be fa$ing9

II9 C%rrent $ompan, $ash flow


46/50

a9 o% nee" to $omplete a $ash flow statement for the $ompan, %sing

the "ire$t metho"9

b9 On$e ,o%*e $omplete" the $ash flow statement7 answer the

following %estions5

i9 What "oes this statement of $ash flow tell ,o% abo%t the so%r$es an"

%ses of the $ompan,8

ii9 Is there an,thing AC Compan, $an "o to impro*e the $ash flow8

iii9 Can this proJe$t be finan$e" with $%rrent $ash flow from the

$ompan,8 Wh, or wh, not8

i*9 If the $ompan, nee"s a""itional finan$ing be,on" what AC

Compan, $an pro*i"e internall, :either now or sometime thro%gho%t

the life of the proJe$t;7 how wo%l" ,o% s%ggest the $ompan, obtain

the a""itional finan$ing7 e%it, or $orporate "ebt7 an" wh,8

III9 Pro"%$t $ost5 AC Compan, belie*es that it has an a""itional7000 ma$hine ho%rs a*ailable in the $%rrent fa$ilit, before it wo%l"

nee" to e/pan"9 AC Compan, %ses ma$hine ho%rs to allo$ate the

fi/e" fa$tor, o*erhea"7 an" %nits sol" to allo$ate the fi/e" sales

e/penses9 AC Compan, e/pe$ts that it will take twi$e as long to

pro"%$e the e/pansion pro"%$t as it $%rrentl, takes to pro"%$e its

e/isting pro"%$t9

a9 What is the pro"%$t $ost for the e/pansion pro"%$t8

b9 , a""ing this new e/pansion pro"%$t7 it helps to absorb the fi/e"

fa$tor, an" sales e/penses9 -ow m%$h $heaper "oes this e/pansion

make the e/isting pro"%$t8

$9 Ass%ming AC Compan, wants a .0L gross margin for the new

pro"%$t7 what selling pri$e sho%l" it set for the e/pansion pro"%$t8


47/50

"9 Ass%ming the same sales mi/ of these two pro"%$ts7 what are the

$ontrib%tion margins an" break4e*en points b, pro"%$t8

I+9 Potential in*estments to a$$elerate profit5 AC $ompan, has the

option to p%r$hase a""itional e%ipment that will $ost abo%t ?.270007

an" this new e%ipment will pro"%$e the following sa*ings in fa$tor,

o*erhea" $osts o*er the ne/t fi*e ,ears5

ear 17 ?17000

ear 27 ?1)7000

ear )7 ?107000

ear .7 ?107000

ear 7 ?67000

AC Compan, %ses the net4present4*al%e metho" to anal,Gein*estments an" "esires a minim%m rate of ret%rn of 12L on the

e%ipment9

a9 What is the net present *al%e of the propose" in*estment ignore

in$ome ta/es an" "epre$iation8

b9 Ass%ming a 4,ear straight4line "epre$iation7 how will this impa$t

the fa$tor,s fi/e" $osts for ea$h of the ,ears :an" the implie" pro"%$t $osts;8 What abo%t $ash flow8

$9 Consi"ering the $ash flow impa$t of the e%ipment as well as the

time4*al%e of mone,7 wo%l" ,o% re$ommen" that AC Compan,

p%r$hases the e%ipment8 Wh, or wh, not8

+9 Con$l%sion5

a9 What are the maJor risk fa$tors that ,o% see in this proJe$t8


48/50

b9 As the $ontroller an" a management a$$o%ntant7 what is ,o%r

responsibilit, to this proJe$t8

$9 What "o ,o% re$ommen" the CO "o8

Writing the Final Paper

19 '%st be si/ to eight "o%ble4spa$e" pages in length7 an" formatte"

a$$or"ing to APA st,le as o%tline" in the Ashfor" Writing Center9

29 '%st in$l%"e a title page with the following5

a9 !itle of paper

b9 #t%"ents name

$9 Co%rse name an" n%mber

"9 Instr%$tors name

e9 Date s%bmitte"

)9 '%st begin with an intro"%$tor, paragraph that has a s%$$in$t

thesis statement9

.9 '%st a""ress the topi$ of the paper with $riti$al tho%ght9

9 '%st en" with a $on$l%sion that reaffirms ,o%r thesis9

69 '%st "o$%ment all so%r$es in APA st,le7 as o%tline" in the

Ashfor" Writing Center9

H9 '%st in$l%"e a separate referen$e page7 formatte" a$$or"ing to

APA st,le as o%tline" in the Ashfor" Writing Center9


49/50


to e*al%ate ,o%r assignment9$

**********************************************************************************

ACC 206 Week !" 1 7ong8term !eision ,aking (Ash)


www.acc206aid.com

3ong4term De$ision 'aking

3ist a few of the iss%es an" $onsi"erations b%sinesses sho%l" ha*e

when it $omes to the sele$tion of long4term in*estments an" how

those iss%es impa$t the *ario%s finan$ial statements9

%i"e" &esponse5&e*iew ,o%r peers posts9 &espon" to at least two of ,o%r peers

"es$ribing how these iss%es $an be o*er$ome b, the tools "is$%sse" in

this $hapter an" wh, :i9e97 looking at I&&7 =P+7 $ash flow;9

**********************************************************************************



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ACC 206 Week !" 2 +esponsibiities in ,anagement Aounting (Ash)


www.acc206aid.com

&esponsibilities in 'anagement A$$o%nting

&e*iew the rights an" responsibilities of Certifie" 'anagement

A$$o%ntants5

http5

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