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# Acct Homework needed

### Customer Question

Fryer Corporation uses the weighted-average method in

its process costing system. This month, the beginning

inventory in the first processing department consisted of

700 units. The costs and percentage completion of these

units in beginning inventory were:

A total of 7,300 units were started and 6,200 units were

transferred to the second processing department during

the month. The following costs were incurred in the first

processing department during the month:

The ending inventory was 80% complete with respect to

materials and 45% complete with respect to conversion

costs.

Required:

The total cost transferred from the first processing

department to the next processing department during

the month is closest to what amount?

Note:

Cost

Material costs . . . . . . . . \$132,200

Conversion costs . . . . . . \$117,500

Cost Percent

Complete

Material costs . . . . . . . . . \$12,600 75%

Conversion costs. . . . . . . . \$8,900 60%

A total of 7,300 units were started and 6,200 units were

transferred to the second processing department during

the month. The following costs were incurred in the first

processing department during the month:

The ending inventory was 80% complete with respect to

materials and 45% complete with respect to conversion

costs.

Required:

The total cost transferred from the first processing

department to the next processing department during

the month is closest to what amount?

Note:

Cost

Material costs . . . . . . . . \$132,200

Conversion costs . . . . . . \$117,500

rounding error. To reduce rounding error, carry out all

computations to at least three decimal places.

Part B: Answer each of the following questions in one to

four sentences. Each answer is worth 4 points.

Use the following information to answer questions 1

through 10.

Financial statements for Praven Company appear below:

Praven Company

Statement of Financial Position

December 31, Year 2 and Year 1

(dollars in thousands)

Year 2 Year 1

Currrent assets:

Cash and marketable securities. . . . . . . . . . . . \$1,150 \$1,130

Accounts receivable, net . . . . . . . . . . . . . . . . . 190 160

Inventory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170 180

Prepaid expenses. . . . . . . . . . . . . . . . . . . . . . . 50 40

Total current assets. . . . . . . . . . . . . . . . . . . . . . 560 510

Noncurrent assets:

Plant & equipment, net . . . . . . . . . . . . . . . . . . 1,420 1,330

Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$1,980 \$1,840

Current liabilities:

Accounts payable . . . . . . . . . . . . . . . . . . . . . . \$1,110 \$1,100

Accrued liabilities . . . . . . . . . . . . . . . . . . . . . . 90 60

Notes payable, short term . . . . . . . . . . . . . . . . 260 260

Total current liabilities . . . . . . . . . . . . . . . . . . . 460 420

Noncurrent liabilities:

Bonds payable. . . . . . . . . . . . . . . . . . . . . . . . . 400 400

Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . 860 820

Stockholder’s equity:

Preferred stock, \$5 par, 15% . . . . . . . . . . . . . . 120 120

Common stock, \$10 par . . . . . . . . . . . . . . . . . 240 240

Additional paid-in capital—common stock . . . . 210 210

Retained earnings . . . . . . . . . . . . . . . . . . . . . . 550 450

Total stockholders’ equity . . . . . . . . . . . . . . . . . 1,120 1,020

Total liabilities & stockholders’ equity . . . . . . . . \$1,980 \$1,840

Praven Company

Income Statement

For the Year Ended December 31, Year 2

(dollars in thousands)

Sales (all on account). . . . . . . . . . . . . . . . . . . . . \$1,700

Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . 1,190

Gross margin. . . . . . . . . . . . . . . . . . . . . . . . . . . 510

Selling and administrative expense . . . . . . . . . . 200

Net operating income. . . . . . . . . . . . . . . . . . . . . 310

Interest expense . . . . . . . . . . . . . . . . . . . . . . . . 40

Net income before taxes. . . . . . . . . . . . . . . . . . . 270

Income taxes (30%) . . . . . . . . . . . . . . . . . . . . . . 81

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$ 189

Dividends during Year 2 totaled \$89 thousand, of which \$18

thousand were preferred dividends. The market price of a

share of common stock on December 31, Year 2 was \$130.

Required:

Compute the following for Year 2:

1. Book value per share

2. Working capital

3. Current ratio

4. Acid-test ratio

5. Accounts receivable turnover

6. Average collection period

7. Inventory turnover

8. Average sale period

9. Times interest earned

10. Debt-to-equity ratio

11. Porter Company has provided the following data for the

second quarter of the most recent year:

Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$300,000

Fixed manufacturing overhead. . . . . . . . . . . . . . 55,000

Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72,500

Fixed selling expense . . . . . . . . . . . . . . . . . . . . . 46,250

Variable manufacturing overhead . . . . . . . . . . . 41,000

Variable administrative expense. . . . . . . . . . . . . 48,000

Direct materials . . . . . . . . . . . . . . . . . . . . . . . . . 51,500

Fixed administrative expense. . . . . . . . . . . . . . . 44,500

Variable selling expense. . . . . . . . . . . . . . . . . . . \$ 49,750

Assume that direct labor is a variable cost and that there

were no beginning or ending inventories.

What is the total contribution margin of Porter Company

for the second quarter?

12. Jatry Corporation’s budgeted sales are \$300,000, its

budgeted variable expenses are \$210,000, and its

budgeted fixed expenses are \$60,000. What is the

company’s break-even in dollar sales amount?

13. Superior Industries’ sales budget shows quarterly sales

for the next year as follows:

Quarter Sales

(units)

First . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000

Second . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,000

Third . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,000

Fourth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,000

Company policy is to have a finished goods inventory at

the end of each quarter equal to 20% of the next quarter’s

sales. How much should the budgeted production for

the second quarter be?

14. The following information is available on Company A:

Sales. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$900,000

Net operating income . . . . . . . . . . . . . . . . . \$936,000

Stockholders’ equity . . . . . . . . . . . . . . . . . . \$100,000

Average operating assets. . . . . . . . . . . . . . . \$180,000

Minimum required rate of return . . . . . . . . 15%

What is Company A’s residual income amount?

15. Nordstrand Company’s net income last year was

\$36,000. Changes in selected balance sheet accounts

for the year appear below:

Increases

(Decreases)

Debit balances:

Accounts receivable . . . . . . . . . . . . . . . . . . . . . \$ (7,000)

Inventory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$ (5,000)

Prepaid expenses. . . . . . . . . . . . . . . . . . . . . . . \$ (3,000)

Credit balances:

Accumulated depreciation . . . . . . . . . . . . . . . . \$18,000)

Accounts payable . . . . . . . . . . . . . . . . . . . . . . \$13,000)

Accrued liabilities . . . . . . . . . . . . . . . . . . . . . . \$((9,000)

Taxes payable . . . . . . . . . . . . . . . . . . . . . . . . . \$(((((((((0)

Deferred taxes . . . . . . . . . . . . . . . . . . . . . . . . . \$((1,000)

Based solely on this information, the net cash provided

by operations under the indirect method on the statement

of cash flows would be how much?

rounding error. To reduce rounding error, carry out all

computations to at least three decimal places.

Submitted: 4 years ago.
Category: Homework
Expert:  Manal Elkhoshkhany replied 4 years ago.

Hello and thank you for requesting me, but as you can see this is a very long post and \$15 would not compensate for the work involved. I recommend that you offer a bonus (if you are willing to add a bonus, please tell me how much)

Thank you

Customer: replied 4 years ago.
Not a problem 30 total
Expert:  Manal Elkhoshkhany replied 4 years ago.

You need to spend \$3 to view this post. Add Funds to your account and buy credits.
Manal Elkhoshkhany, Tutor
Category: Homework
Satisfied Customers: 9735
Experience: More than 5000 online tutoring sessions.
Expert:  Manal Elkhoshkhany replied 4 years ago.
Thanks a million mnever for the accept and the bonus

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