Hey you answered some questions for me for 40 bucks a couple of weeks ago. My teacher just sent me some feedback and I was wondering if you could fix the mistakes. The feedback from the teacher is on the second document, and the first document is where the changes need to be made/saved to/ fixed.

Brendan Corneby and Marko Rados ACG 2071 Midterm Assessment Answer the questions to the best of your ability. Include the detail of your calculations where calculations are required. Add additional pages as necessary. 1. For each of the following, indicate whether the statement relates to managerial accounting (MA) or financial accounting (FA) (5 Points): Statement How reports will affect employee behavior is a concern. Summary reports are prepared primarily on the company as a whole, usually on a quarterly or annual basis. Relevant information and focus on the future. Primary users include investors, creditors, and government authorities. There is no requirement to follow GAAP. Applies to MA or FA MA FA MA FA MA 2. Classify each cost of a furniture manufacturer as either product cost (PR) or period cost (PE) (7 Points): Cost Vice president of marketing's salary Delivery expense Wood used to make tables Depreciation on office equipment Production supervisor's salary Factory insurance Corporate office rent PR or PE PE PR PR PE PE PE PE 3. Dreams Manufacturing, Inc. provided the following information for the year: PurchasesRaw Materials Plant Utilities and Insurance Indirect Materials Indirect Labor Ending BalanceWork-in-Process Inventory Ending BalanceRaw Materials Inventory Direct Labor Depreciation on Factory Plant and Equipment Beginning BalanceWork-in-Process Inventory Beginning BalanceRaw Materials Inventory $270,000 202,500 35,250 14,250 42,000 45,000 352,500 18,000 18,000 63,000 Required: Prepare a statement of the cost of goods manufactured using the following format (25 Points): Schedule of Cost of Goods Manufactured Beginning Work-in-Process Inventory Direct Materials Used: Beginning Raw Materials Inventory 63,000 Purchases of Raw Materials 270,000 Raw Materials Available for Use 333,000 Ending Raw Materials Inventory (45,000) Direct Materials Used 288,000 Direct Labor 352,500 Manufacturing Overhead: Indirect Materials 32,250 Indirect Labor 14,250 DepreciationPlant and Equip. 18,000 Plant Utilities and Insurance 202,500 Total Manufacturing Overhead Total Manufacturing Costs Incurred During the Year Total Manufacturing Costs to Account For Ending Work-in-Process Inventory Cost of Goods Manufactured H=f-g 18000 a 288,000 b 352,500 c 267,000 d 907,500 (b+c+d) e 925,500 (e+a) f (42,000)g 883,500h 4. At the beginning of the year, Rupert Manufacturing had the following account balances: Work-in-Process Inventory 2,000 Finished Goods Inventory 8,000 Manufacturing Overhead 0 Cost of Goods Sold 0 Sales Revenue 0 The following additional details are provided for the year: Direct materials placed in production Direct labor incurred Manufacturing overhead incurred Manufacturing overhead allocated to production Cost of jobs completed Jobs sold for total revenue of Cost of jobs sold $ 80,000 190,000 300,000 295,000 500,000 750,000 440,000 The remaining balance of Manufacturing Overhead was adjusted to zero. Calculate the ending balances in Work-in-Process Inventory, Finished Goods Inventory, Manufacturing Overhead (unadjusted), and Cost of Goods Sold (after adjustment) (20 Points). Ending work in process inventory= 2000+80,000+190,000+295,000-500,000=67000 Finished goods= 500,000-440,000=60,000 Manufacturing overhead= 300,000 Cost of goods sold= 440000-44000=396,000 5. Journalize the following transactions for Malone Custom Furniture Manufacturing (12 Points): a) Incurred and paid advertising expenses, $3,500. b) Incurred manufacturing wages of $30,000, 60% of which was direct labor and 40% of which was indirect labor. c) Purchased raw materials on account, $27,000. d) Used in production: direct materials, $12,000; indirect materials,$5,500 e) Recorded manufacturing overhead: depreciation on plant, $14,000; plant insurance (previously paid), $1,800; plant property tax, $4,500 (credit Property Tax Payable). f) Allocated manufacturing overhead to jobs, 150% of direct labor costs. g) Completed production on jobs with costs of $55,000. h) Sold inventory on account, $64,000; cost of goods sold, $35,000. i) Adjusted for overallocated or underallocated overhead. date Dr Cr Advertising expense a/c 3,500 cashbook 3,500 Direct labour a/c 18,000 Indirect labour a/c 12,000 Work in proocess 30,000 Raw material inventory a/c 27,000 Accounts payable/ 27,000 Work in process account 12,000 Raw material Inventory account 12,000 Work in process a/c 5,500 Manufacturing overhead a/c 5,500 Depreciation on plant account 14,000 Manufacturing overhead a/c 14000 Plant insurance a/c 1800 Manufacturing overhead account 1800 Plant property tax expense a/c 4500 Manufacturing overhead a/c 4500 Prepaid plant insurance a/c 1800 Manufacturing o/h a/c 1800 Manufacturing overhead accounts 27000 work in process a/c 27000 Finished good inventory a/c 55,000 Work in process aa/c 55,000 Accounts receivable 64,000 Finished good inventory a/c 35,000 Profit /loss acc 29,0003 6. Florian Plant Services completed a special landscaping job for Pierre Designs Company. Florian uses ABC and has the following predetermined overhead allocation rates: Activity Designing Planting Predetermined Overhead Allocation Base Allocation Rate Number of designs $275 per design Number of plants $15 per plant The Pierre Designs project required $1,200 in landscape materials, $700 in direct labor, one design, and 35 plants. Requirements (15 Points): 1. What is the total cost of the work done for Pierre Designs? 1200+700+275+35*15=2700 2. If Pierre Designs paid $3,900 for the job, what is the operating income or loss? 3900-2700=$1200 0perating income 3. If Florian desires an operating income of 50% of cost, how much should the company charge for the Pierre Designs project? 2700*150/100=$4,050 7. Provide answers to the following just-in-time costing questions (3 Points): Just-in-Time Costing Question When are the costs of products recorded? Which inventory accounts are used? Which accounts are used to record manufacturing costs? Just-in-Time Costing Answer When incurred Finished goods a/c and raw and in process a/c Conversion costs a/c 8. Caprice, Inc. has adopted a JIT management system and has the following transactions in December: Dec 3 Purchased raw materials on account, $80,000 Dec 8 Incurred labor and overhead costs, $105,000 Dec 15 Completed 750 units with standard costs of $106 for direct materials and $165 for conversion costs Dec 23 Sold 650 units for $395 each Record the journal entries for Caprice, Inc. for December (5 Points). Date details Raw and in process inventory Dr 80,000 Accounts payable to record material cost Raw and in process inventory a/c 80,000 105,000 Conversion cost a/c Finished goods(750*(165+106) 105,000 203,250 Raw and in process inventory a/c Account receivable (650*395) Cr 203,250 253,500 Finished goods a/c (650*271) 176,150 Profit and loss a/c 77,350 9. Distinguish the following costs as prevention, appraisal, internal failure, or external failure (7 Points): a) b) c) d) e) f) g) Rework substandard products internal failure Technical support provided to suppliers prevention Warranty repairs and replacements external failure Inspection of test equipment appraisal Liability arising from defective products external failure Field testing and appraisal at customer site appraisal Disposal of defective products internal failure 10. Identify each cost below as variable (V), fixed (F), or mixed (M), relative to units sold (6 Points): Units Produced and Sold Total electric cost Supervisor's monthly salary Assembly line workers' per hour wage rate Total materials cost Depreciation on factory equipment Total delivery costs 100 $1,500 $4,500 500 $1,650 $4,500 1,000 Mixed increases but no proportional to increase in units sold M $1,700 Fixed constant at all levels of production $4,500 Fixed F $30 $30 $30 $800 $4,000 $8,000 $5,000 $5,000 $5,000 $1,400 $1,800 Variable varies proportionally V Fixed F $2,250 Mixed varies but has an element of fixed cost M 11. Andres Napkin Company sells a product for $80 per unit. Variable costs are $25 per unit, and fixed costs are $4,000 per month. Andres sold 2,000 units in October. Prepare an income statement for October using the contribution margin format (10 Points). Andres Napkin Company Contribution margin Income statement for October Sales revenue 2000*80 Less variable costs 2000*25 Contribution margin Less fixed costs Profit 160,000 (50,000) 110,000 (4,000) 106,000 12. Fun Time Amusement Park provides a variety of attractions. Fun Time sells tickets at $50 per person as a one-day entrance fee. Variable costs are $28 per person, and fixed costs are $178,800 per month. Assume that Fun Time reduces fixed costs from $178,800 per month to $166,500 per month. Compute the new breakeven point in tickets and in sales dollars (10 Points). Break even = fixed costs /contribution margin Contribution margin= selling price-variable cost=50-28=22 New B/E tickets=166,500/22= 7568.1818 New breakeven point in tickets= 7569 tickets since you cannot sell 0.181818 tick Brendan Corneby and Marko Rados ACG 2071 Midterm Assessment Answer the questions to the best of your ability. Include the detail of your calculations where calculations are required. Add additional pages as necessary. 1. For each of the following, indicate whether the statement relates to managerial accounting (MA) or financial accounting (FA) (5 Points): Statement How reports will affect employee behavior is a concern. Summary reports are prepared primarily on the company as a whole, usually on a quarterly or annual basis. Relevant information and focus on the future. Primary users include investors, creditors, and government authorities. There is no requirement to follow GAAP. Applies to MA or FA MA FA MA FA MA 2. Classify each cost of a furniture manufacturer as either product cost (PR) or period cost (PE) (7 Points): Cost Vice president of marketing's salary Delivery expense Wood used to make tables Depreciation on office equipment Production supervisor's salary Factory insurance Corporate office rent PR or PE PE PR PR PE PE PE PE 3. Dreams Manufacturing, Inc. provided the following information for the year: PurchasesRaw Materials Plant Utilities and Insurance Indirect Materials Indirect Labor Ending BalanceWork-in-Process Inventory Ending BalanceRaw Materials Inventory Direct Labor Depreciation on Factory Plant and Equipment Beginning BalanceWork-in-Process Inventory Beginning BalanceRaw Materials Inventory $270,000 202,500 35,250 14,250 42,000 45,000 352,500 18,000 18,000 63,000 Required: Prepare a statement of the cost of goods manufactured using the following format (25 Points): Schedule of Cost of Goods Manufactured Beginning Work-in-Process Inventory Direct Materials Used: Beginning Raw Materials Inventory 63,000 Purchases of Raw Materials 270,000 Raw Materials Available for Use 333,000 Ending Raw Materials Inventory (45,000) Direct Materials Used 288,000 Direct Labor 352,500 Manufacturing Overhead: Indirect Materials 32,250 Indirect Labor 14,250 DepreciationPlant and Equip. 18,000 Plant Utilities and Insurance 202,500 Total Manufacturing Overhead Total Manufacturing Costs Incurred During the Year Total Manufacturing Costs to Account For Ending Work-in-Process Inventory Cost of Goods Manufactured H=f-g 18000 a 288,000 b 352,500 c 267,000 d 907,500 (b+c+d) e 925,500 (e+a) f (42,000)g 883,500h 4. At the beginning of the year, Rupert Manufacturing had the following account balances: Work-in-Process Inventory 2,000 Finished Goods Inventory 8,000 Manufacturing Overhead 0 Cost of Goods Sold 0 Sales Revenue 0 The following additional details are provided for the year: Direct materials placed in production Direct labor incurred Manufacturing overhead incurred Manufacturing overhead allocated to production Cost of jobs completed Jobs sold for total revenue of Cost of jobs sold $ 80,000 190,000 300,000 295,000 500,000 750,000 440,000 The remaining balance of Manufacturing Overhead was adjusted to zero. Calculate the ending balances in Work-in-Process Inventory, Finished Goods Inventory, Manufacturing Overhead (unadjusted), and Cost of Goods Sold (after adjustment) (20 Points). Ending work in process inventory= 2000+80,000+190,000+295,000-500,000=67000 Finished goods= 500,000-440,000=60,000 Manufacturing overhead= 300,000 Cost of goods sold= 440000-44000=396,000 5. Journalize the following transactions for Malone Custom Furniture Manufacturing (12 Points): a) Incurred and paid advertising expenses, $3,500. b) Incurred manufacturing wages of $30,000, 60% of which was direct labor and 40% of which was indirect labor. c) Purchased raw materials on account, $27,000. d) Used in production: direct materials, $12,000; indirect materials,$5,500 e) Recorded manufacturing overhead: depreciation on plant, $14,000; plant insurance (previously paid), $1,800; plant property tax, $4,500 (credit Property Tax Payable). f) Allocated manufacturing overhead to jobs, 150% of direct labor costs. g) Completed production on jobs with costs of $55,000. h) Sold inventory on account, $64,000; cost of goods sold, $35,000. i) Adjusted for overallocated or underallocated overhead. date Dr Cr Advertising expense a/c 3,500 cashbook 3,500 Direct labour a/c 18,000 Indirect labour a/c 12,000 Work in proocess 30,000 Raw material inventory a/c 27,000 Accounts payable/ 27,000 Work in process account 12,000 Raw material Inventory account 12,000 Work in process a/c 5,500 Manufacturing overhead a/c 5,500 Depreciation on plant account 14,000 Manufacturing overhead a/c 14000 Plant insurance a/c 1800 Manufacturing overhead account 1800 Plant property tax expense a/c 4500 Manufacturing overhead a/c 4500 Prepaid plant insurance a/c 1800 Manufacturing o/h a/c 1800 Manufacturing overhead accounts 27000 work in process a/c 27000 Finished good inventory a/c 55,000 Work in process aa/c 55,000 Accounts receivable 64,000 Finished good inventory a/c 35,000 Profit /loss acc 29,0003 6. Florian Plant Services completed a special landscaping job for Pierre Designs Company. Florian uses ABC and has the following predetermined overhead allocation rates: Activity Designing Planting Predetermined Overhead Allocation Base Allocation Rate Number of designs $275 per design Number of plants $15 per plant The Pierre Designs project required $1,200 in landscape materials, $700 in direct labor, one design, and 35 plants. Requirements (15 Points): 1. What is the total cost of the work done for Pierre Designs? 1200+700+275+35*15=2700 2. If Pierre Designs paid $3,900 for the job, what is the operating income or loss? 3900-2700=$1200 0perating income 3. If Florian desires an operating income of 50% of cost, how much should the company charge for the Pierre Designs project? 2700*150/100=$4,050 7. Provide answers to the following just-in-time costing questions (3 Points): Just-in-Time Costing Question When are the costs of products recorded? Which inventory accounts are used? Which accounts are used to record manufacturing costs? Just-in-Time Costing Answer When incurred Finished goods a/c and raw and in process a/c Conversion costs a/c 8. Caprice, Inc. has adopted a JIT management system and has the following transactions in December: Dec 3 Purchased raw materials on account, $80,000 Dec 8 Incurred labor and overhead costs, $105,000 Dec 15 Completed 750 units with standard costs of $106 for direct materials and $165 for conversion costs Dec 23 Sold 650 units for $395 each Record the journal entries for Caprice, Inc. for December (5 Points). Date details Raw and in process inventory Dr 80,000 Accounts payable to record material cost Raw and in process inventory a/c 80,000 105,000 Conversion cost a/c Finished goods(750*(165+106) 105,000 203,250 Raw and in process inventory a/c Account receivable (650*395) Cr 203,250 253,500 Finished goods a/c (650*271) 176,150 Profit and loss a/c 77,350 9. Distinguish the following costs as prevention, appraisal, internal failure, or external failure (7 Points): a) b) c) d) e) f) g) Rework substandard products internal failure Technical support provided to suppliers prevention Warranty repairs and replacements external failure Inspection of test equipment appraisal Liability arising from defective products external failure Field testing and appraisal at customer site appraisal Disposal of defective products internal failure 10. Identify each cost below as variable (V), fixed (F), or mixed (M), relative to units sold (6 Points): Units Produced and Sold Total electric cost Supervisor's monthly salary Assembly line workers' per hour wage rate Total materials cost Depreciation on factory equipment Total delivery costs 100 $1,500 $4,500 500 $1,650 $4,500 1,000 Mixed increases but no proportional to increase in units sold M $1,700 Fixed constant at all levels of production $4,500 Fixed F $30 $30 $30 $800 $4,000 $8,000 $5,000 $5,000 $5,000 $1,400 $1,800 Variable varies proportionally V Fixed F $2,250 Mixed varies but has an element of fixed cost M 11. Andres Napkin Company sells a product for $80 per unit. Variable costs are $25 per unit, and fixed costs are $4,000 per month. Andres sold 2,000 units in October. Prepare an income statement for October using the contribution margin format (10 Points). Andres Napkin Company Contribution margin Income statement for October Sales revenue 2000*80 Less variable costs 2000*25 Contribution margin Less fixed costs Profit 160,000 (50,000) 110,000 (4,000) 106,000 12. Fun Time Amusement Park provides a variety of attractions. Fun Time sells tickets at $50 per person as a one-day entrance fee. Variable costs are $28 per person, and fixed costs are $178,800 per month. Assume that Fun Time reduces fixed costs from $178,800 per month to $166,500 per month. Compute the new breakeven point in tickets and in sales dollars (10 Points). Break even = fixed costs /contribution margin Contribution margin= selling price-variable cost=50-28=22 New B/E tickets=166,500/22= 7568.1818 New breakeven point in tickets= 7569 tickets since you cannot sell 0.181818 tick