Hi everyone

I have Bonus Assignment and I want someone help me to get the answer.

ACCT 5100 - Bonus Assignment - Due Monday July 18th in class Part I. Transaction Analysis (is on the Answer Sheet) Part II. Cost Classification-Multiple Choice Select the best answer for each question. 1. The salary paid to the maintenance supervisor in a manufacturing plant is an example of: A) B) C) D) Product Cost Manufacturing Overhead No Yes Yes No Yes Yes No No 2. Wages paid to the factory supply shop foreman are considered an example of: A) B) C) D) Direct Labor Period Cost Yes Yes Yes No No Yes No No 3. Property taxes on a manufacturing plant are an element of: A) B) C) D) Conversion cost Period cost Yes No Yes Yes No Yes No No 4. The variable portion of the cost of electricity for a manufacturing plant is a: A) B) C) D) Conversion cost Period cost Yes No Yes Yes No Yes No No 5. Which of the following would most likely be included as part of manufacturing overhead in the production of a wooden table? A) The amount paid to the individual who stains the table. B) The commission paid to the salesperson who sold the table. C) The cost of glue used in the table. D) The cost of the wood used in the table. 6. Which of the following would most likely not be included as manufacturing overhead in furniture factory? A) Glue in a chair. B) The amount paid to the individual who stains a chair. C) The workman's compensation insurance of the supervisor who oversees production. D) The factory utilities of the department in which production takes place. 7. The property taxes on the factory building for a manufacturer would be an example of: A) B) C) D) Prime Cost Conversion Cost No Yes Yes No Yes Yes No No 8. Direct materials cost is a: A) B) C) D) Period cost Product cost Yes No No No No Yes Yes Yes 9. If the level of activity increases within the relevant range: A) variable cost per unit and total fixed costs also increase. B) fixed cost per unit and total variable cost also increase. C) total cost will increase and fixed cost per unit will decrease. D) variable cost per unit and total cost also increase. 10. For planning, control, and decision-making purposes: A) fixed costs should be converted to a per unit basis. B) discretionary fixed costs should be eliminated. C) variable costs should be ignored. D) mixed costs should be separated into their variable and fixed components. 11. When the activity level is expected to decline within the relevant range, what effects would be anticipated with respect to each of the following? A) B) C) D) Fixed cost per unit Increase Increase No change No change Variable cost per unit No change Increase No change Increase 12. Within a relevant range, the amount of variable cost per unit: A) differs at each activity level. B) remains constant at each activity level. C) increases as activity increases. D) decreases as activity increases. 13. When the level of activity increases within the relevant range, how does each of the following change? A) B) C) D) Average cost per unit Total variable cost Fixed cost per unit Increases Increases Increases Increases No change Increases Decreases No change Decreases Decreases Increases Decreases 14. The selling price per unit less the variable cost per unit is the A) fixed cost per unit. B) gross margin. C) margin of safety. D) contribution margin per unit. 15. The strategy MOST likely to reduce the breakeven point would be to A) increase both the fixed costs and the contribution margin. B) decrease both the fixed costs and the contribution margin. C) decrease the fixed costs and increase the contribution margin. D) increase the fixed costs and decrease the contribution margin. 16. The breakeven point decreases if A) variable cost per unit increases. B) total fixed costs decrease. C) contribution margin per unit decreases. D) selling price per unit decreases. Part III. CVP Analysis and Cost Behavior Use the following for the next 6 questions: GH Company publishes and sells grade school textbooks to bookstores. The costs of publishing a grade school textbook is as follows. Each book sells for $10 per copy. Fixed expenses for each new edition of the textbook: Copy editing Art work Typesetting Variable expenses per copy of the book: Printing and binding Salespersons' commissions Author's royalties $5,000 $3,500 $36,500 $2.00 $0.75 $1.25 1. Compute the contribution margin per unit of a grade school textbook. 2. How many copies of each edition of a grade school textbook should be sold in order to break-even? 3. The GH Company wants to make $22,500 profit on publishing and selling any edition of grade school textbook. How many copies must be printed and sold to achieve this target profit? 4. Currently GP Company is selling 12,000 copies of a grade school textbook. Management feels that sales could be increased by 1,500 textbooks if the selling price per textbook was reduced by $1.00 per copy. What would be the change in profit if the selling price is reduced? 5. Assume the GP Company is considering spending $6,000 for advertising each edition of grade textbook for the purpose of increasing sales. Minimum of how many additional textbooks should be sold in order to justify this proposal? Data for next 3 questions: Cheney Manufacturing produces a single product that sells for $200. Variable costs per unit equal $50. The company expects total fixed costs to be $120,000 for the next month at the projected sales level of 2,000 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately. 6. What is the current breakeven point in terms of number of units? 7. Suppose that management believes that a $24,000 increase in the monthly advertising expense will result in a considerable increase in sales. Sales must increase by how much (in units) in order to justify this additional expenditure? 8. Suppose that management believes that a 20% reduction in the selling price will result in a 20% increase in sales. What would be the change in operating income if the selling price is reduced? 9. Ball Corporation has provided the following cost data for last year when 100,000 units were produced and sold: Raw materials $200,000 Direct labor 100,000 Manufacturing overhead 200,000 Selling and administrative expense 150,000 All costs are variable except for $100,000 of manufacturing overhead and $100,000 of selling and administrative expense. There are no beginning or ending inventories. If the selling price is $10 per unit, what would be the amount of net operating income from producing and selling 110,000 units? 10. The following information pertains to Sisk Company. Compute Sisk's break-even point in number of units. Sales (25,000 units) $500,000 Manufacturing expenses: Variable 170,000 Fixed 35,000 Selling and general expenses: Variable 5,000 Fixed 30,000 11. Southwestern College is planning to hold a fundraising banquet at one of the local country clubs. It has two options for the banquet: OPTION 1: Crestview Country Club a. Fixed rental cost of $1,000. b. $12 per person for food. OPTION 2: Tallgrass Country Club a. Fixed rental cost of $3,000. b. A caterer who charges $8.00 per person for food. Southwestern College has budgeted $1,800 for administrative and marketing expenses. It plans to hire a band, which will cost another $800. Tickets are expected to be $30 per person. Local business supporters will donate any other items required for the event. Organizers of the event believe that 600 people will be attending the event. How much would be profit if Southwestern College chooses the optimal option? 12. Axle and Wheel Manufacturing currently produces 1,000 axles per month. The following per unit data apply for sales 1,000 axles per month to regular customers: Direct materials $30 Direct manufacturing labor 5 Variable manufacturing overhead 10 Fixed manufacturing overhead 40 Total manufacturing costs $85 The plant has capacity for 2,000 axles and company is considering expanding production to 1,500 axles. What would be the total cost of producing 1,500 axles? 13. Tire and Spoke Manufacturing currently produces 1,000 bicycles per month. The following per unit data apply for sales to regular customers: Direct materials $50 Direct manufacturing labor 5 Variable manufacturing overhead 14 Fixed manufacturing overhead 10 Total manufacturing costs $79 The plant has capacity for 3,000 bicycles and is considering expanding production to 2,000 bicycles. What would be the cost per unit if 2,000 bicycles are produced? Data for the next 2 questions: Donnelly Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last year, the shirts sold for $7.50 each, and the variable expense was $2.25 per unit. The company needed to sell 20,000 shirts to break even. The net operating income last year was $8,400. Donnelly's expectations for the coming year include the following: * The selling price of the T-shirts will be $9.00. * Variable expenses will increase by one third. * Fixed expenses will increase by 10 percent. 14. How many T-shirts Donnelly Corporation must sell in order to break even in the coming year? 15. If Donnelly Corporation wishes to earn $22,500 in net operating income for the coming year, what should be the company's sales volume in dollars? Part IV. Financial Statements P1. The balance of accounts for Sun Company for year ended Dec 31, 2015 in random order are as follows: Sales Interest Revenue Salaries Expense Land Cost of Goods Sold Cash Accounts Payable Depreciation Expense Notes Payable (due in 5 years) Taxes Payable Income Tax Expense 166 5 45 30 60 8 32 8 27 5 6 Supplies Office Equipment Accumulated Dep.Office Equip Dividends Supplies Expense Retained Earnings, Jan. 1 Common Stock Rent Expense Accounts Receivable Merchandise Inventory Utilities Expense 6 130 28 15 6 42 100 18 15 50 8 Prepare organized and readable Income Statement, Statement of Retained Earnings, and Balance Sheet (classified) on the sheets provided on the Answers Sheet. P2. Jan opened an accounting firm on January 1, 2010 by investing $40,000 of her own money. During 2015, Jan had the following transactions. 1) Borrowed $30,000 from bank by issuing a 5-year note. 2) Sold its old equipment at book value, $5,000 in cash 3) Purchased new equipment for $20,000 in cash. 4) Purchased $2000 supplies, paid $800 in cash and the rest was on account. 5) Paid $10,000 for rent. 6) Provided $120,000 of services, collected $112,000 of it, the rest was on account 7) Paid $5,000 for utilities - phone, electricity, water, etc. 8) Paid $3000 to bank, of which $1,200 was for interest and the rest was for payoff of principal of a loan. 9) Took $8,000 as dividend. 10) Recorded $5,000 depreciation expense on equipment. 11) Paid $4,000 to IRS for income tax. 12) Paid herself $70,000 as salaries. 13) Recorded $1,000 used up supplies at the end of the year. Prepare an organized Statement of Cash Flows in the space provided on Answers Sheet. Part V. Financial Statements Analysis P3. The financial statements of Camino Company appear below: Camino Company Statement of Financial Position As of December 31 (dollars in thousands) Assets 2015 Cash and marketable securities $ 110 Accounts receivable 180 Merchandise Inventory 110 Prepaid expenses 80 Plant & equipment, net 1,850 Total assets $2,330 Liabilities Accounts payable $ 170 Salaries Payable 60 Notes payable, short term 240 Bonds payable (due in 10 years) 490 Total liabilities 960 Stockholders' equity Preferred stock, $100 par, 15% 100 Common stock, $15 par 430 Retained earnings 840 Total stockholders' equity 1,370 Total liabilities & stockholders' equity $2,330 2014 $ 105 160 100 80 1,805 $2,250 $ 150 50 300 520 1,020 100 430 700 1,230 $2,250 Camino Company Income Statement For the Year Ended December 31, (dollars in thousands) 2015 2014 Net Sales (all on account) $1,910 $1,500 Expenses: Cost of goods sold 1,330 1,050 Operating expenses ($180 of it was for salaries) 230 230 Interest expense 50 52 Income taxes 90 50 Total Expenses 1700 1,382 Net income $ 210 118 For each of the following questions, compute appropriate relevant ratio, then answer the question based on your interpretation of the ratio results. Make sure to include your numbers for ratios in your answer to each question. Q1. Did Camino Company's ability to pay short term debts improve in 2015 compared to 2014? Why? Q2. Did Camino Company's profitability improve in 2015 compared to 2014? Why? Q3. Did Camino Company's ability to stay in business improve in 2015 compared to 2014? Why? Q4. Camino Company has a policy of collecting its money from customers in less than 20 days. Based on 2015 data, how effective is Camino in managing its accounts receivable? Why Q5. How effective is Camino in managing its inventory based on recent year data (2015)? Camino is in an industry that companies sells their products in 30 days after purchase. Q6. What was the amount of cash collected by Camino from customers in 2015? Q7. How much was the amount of merchandise inventory purchased by Camino in 2015? Q8. How much was the amount of dividends paid by Camino to shareholders in 2015? ACCT 5100 - Bonus Assignment ANSWER SHEET Name_________________________ Part I. Transaction Analysis: HP Company sells building merchandise. In the space provided determine the immediate and the ultimate economic impact of each of the listed transaction on company's financial statements. \"Ultimate impact\" means the impact after preparing financial statements. Use actual numbers in each box affected. Example: +10000 or 0 or -10000. Income Statement Revenue Expense Net Income Business Transactions 1. Purchased 1000 units of a merchandise called Zoom at a price of $20 per unit. Paid $2,000 in cash and the rest was on account. 2. Sold 600 units of the Zoom purchased in the above transaction at a selling price of $30 per unit. Balance Sheet Asset Liability SE 3. Recorded $500 used supplies. 4. Due to a flood, company lost $3,000 equipment, but collected only $2500 from insurance company. 5. Company sold its old equipment with a book value of $4,000 for only $3,000 in cash. Part II. Cost Classification-Multiple Choice 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Part III. CVP Analysis Problems 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Statement of Cash Flows Op Act Inv. Act Fin Act Part IV. Financial Statement (don't forget proper title and date): Income Statement Statement of Retained Earnings Balance Sheet Statement of Cash Flows Part V. Financial Statement Analysis Place the answer to the 5 questions on this page. Use back of the page if needed. State the question number and then, state your