1.Browning Inc. production budget for Product X for the year ended December 31 is as follows: Product X Sales 640,000 units Plus desired ending inventory 85,000 Total 725,000 Less estimated beginning inventory, Jan. 1 90,000 Total production 635,000 In Brown's production operations, Materials A, B, and C are required to make Product X. The quantities of direct materials expected to be used for each unit of product are as follows: Product X Material A .50 pound per unit Material B 1.00 pound per unit Material C 1.20 pound per unit The prices of direct materials are as follows: Material A $0.60 per pound Material B $1.70 per pound Material C $1.50 per pound Prepare a direct materials purchases budget for Product X. 2. Quick Company has been purchasing a component, Part Q, for $20 a unit. Quick is currently operating at 70% of capacity and no significant increase in production is anticipated in the near future. The cost of manufacturing a unit of Part Q, determined by absorption costing methods, is estimated as follows: Direct materials $12.50 Direct labor 5.00 Variable factory overhead 1.25 Fixed factory overhead 3.15 Total $21.90 Prepare a differential analysis report, dated March 12 of the current year, on the decision to make or buy Part Q. 3. FDE Manufacturing Company has a normal plant capacity of 75,000 units per month. Because of an extra large quantity of inventory on hand, it expects to produce only 60,000 units in May. Monthly fixed costs and expenses are $150,000 ($2 per unit at normal plant capacity), and variable costs and expenses are $13 per unit. The present selling price is $25 per unit. The company has an opportunity to sell 5,000 additional units at $14.30 per unit to an exporter who plans to market the product under its own brand name in a foreign market. The additional business is therefore not expected to affect the regular selling price or quantity of sales of FDE Manufacturing Company. Prepare a differential analysis report, dated April 21 of the current year, on the proposal to sell at the special price. 4. The sales, income from operations, and invested assets for each division of Garner Company are as follows: Income from Invested Sales Operations Assets Division E $3,000,000 $470,000 $2,500,000 Division F 3,600,000 430,000 2,400,000 Division G 6,000,000 560,000 3,000,000 (a) Using the expanded expression, determine the profit margin, investment turnover, and rate of return on investment for each division. Round to one decimal place. (b) Which is (are) the most profitable per dollar invested? 5. The sales, income from operations, and invested assets for each division of Salem Company are as follows: Income from Invested Sales Operations Assets Division C $4,000,000 $410,000 $3,500,000 Division D 3,500,000 600,000 4,000,000 Division E 2,250,000 780,000 7,000,000 Management has established a minimum rate of return for invested assets of 11%. (a) Determine the residual income for each division. (b) Based on residual income, which of the divisions is the most profitable? 6. Condensed data taken from the ledger of Crawford Company at December 31, 2011 and 2010, are as follows: 2011 2010 Current assets 200,000 $180,000 Property, plant, and equipment 450,000 400,000 Intangible assets 20,700 30,000 Current liabilities 70,000 80,000 Long-term liabilities 200,000 250,000 Common stock 275,000 200,000 Retained earnings 125,700 80,000 Prepare a comparative balance sheet, with horizontal analysis, for December 31, 2011 and 2010. (Round percents to one decimal place.) 7. Illustrate the effects on the accounts and financial statements of each of the following transactions for a company using a job order cost system: (a) Materials purchased on account $186,000 (b) Materials requisitioned: For production orders 161,500 For general factory use 8,700 (c) Factory labor used: On production orders 139,800 For general factory purposes 9,000 (d) Depreciation on factory equipment 40,000 (e) Factory overhead applied, based on machine hours 97,650 (f) Jobs finished 406,000 (g) Jobs shipped to customers: cost, $394,000; selling price 580,000 8. The following items are reported on a companys balance sheet: Cash $300,000 Marketable securities 100,000 Accounts receivable 200,000 Inventory 200,000 Accounts payable 250,000 Determine the (a) current ratio and (b) quick ratio. Round your answer to one decimal place