Kindly assist me with the following assignment. Provide detailed and well elaborated answers to every question.

1.20% target contribution margin is set for Duct, which is a new product with the following unit costs:

Manufacturing costsVariable$12

oFixed8

Selling & admin. CostsVariable$3

oFixed5

What is Duct's target selling price?

2.

Below are data from the income statement of Brown, Inc.:

Beginning inventory, finished goods$16,000

Ending inventory, finished goods21,000

Cost of goods sold43,000

Gross margin from sales39,000

Operating expenses - marketing and selling20,000

Net income19,000

What was Brown's cost of goods manufactured?

3.

The expected selling price for a new product is $19.00. Management's goal is to obtain a 20% contribution margin on all sales. If the new product has variable selling and distribution costs of $3.00 per unit, what is the product's target variable manufacturing cost?

4.

Smith Legal Services has offered to represent a plaintiff in a lawsuit for a retainer of $20,000 plus 40% of any award over $20,000. Smith expects to incur out-of-pocket expenditures of $15,000 in litigating the suit. Possible court awards with their associated probabilities are:

AwardProbability

$100,0000.7

$00.3

What is the expected value to Smith of the lawsuit?

5.

Grant Co.'s sales budget shows the following projections for the year ending December 31:

QuarterUnits

First30,000

Second40,000

Third22,500

Fourth27,500

Total120,000

Inventory at the beginning of the year was budgeted at 9,000 units. The quantity of finished goods inventory at the end of each quarter is to equal 30% of the next quarter's budgeted sales of units. What amount should the production budget show for units to be produced during the first quarter?

6.What term is used to represent unavoidable past costs that cannot be changed no matter what

7.Spark Co. buys cordless phones for $125 each and sells them for $200 each. Spark pays a sales commission of $25 per phone sold and monthly fixed costs are $3,000. Assuming Spark desired a profit of 10% of sales, how many units must Spark sell?

8.A company that produces a single product using a continuous process had no work in process on April 1. During the month of April, 10,000 units were started and 9,000 completed units were transferred. The ending work-in-process inventory was complete in terms of materials and 50% complete in terms of conversion. The cost of direct materials was $114,000, and the cost of direct labor amounted to $38,000. Manufacturing overhead is assigned at the rate of 50% of direct materials. For the purpose of determining the cost of goods manufactured in April, what is the cost per equivalent whole unit?

9.Star Co. is a retail store specializing in contemporary furniture. The following information is taken from Star's June budget:

Sales$540,000

Cost of goods sold300,000

Merchandise inventory-June 1150,000

Merchandise inventory-June 30180,000

Accounts payable for purchases-June 185,000

Accounts payable for purchases-June 3075,000

What amount should Star budget for cash disbursements for June purchases?

10.Which of the following is a major difference between the just-in-time (JIT) and traditional approaches to manufacturing?

A.The JIT approach usually involves a large number of suppliers while traditional approaches usually involve only a small number of suppliers.

B.The JIT approach requires centralized purchasing while traditional approaches encourage purchasing decisions by production employees.

C.The JIT approach uses a push-through system while traditional approaches use a pull-through system.

D.The JIT approach operates with low inventory levels while traditional approaches may operate with high inventory levels.

11.

Match Co. manufactures a product with the following costs per unit, based on a maximum plant capacity of 400,000 units per year:

Direct materials$ 60

Direct labor10

Variable overhead40

Fixed overhead30

Total$140

Match has a ready market for all 400,000 units at a selling price of $200 each. Selling costs in this market consist of $10 per unit shipping and a fixed licensing fee of $50,000 per year. Reno Co. wishes to buy 5,000 of these units on a special order. There would be no shipping costs on this special order. What is the lowest price per unit at which Match should be willing to sell the 5,000 units to Reno?

12.Dawn Corp. uses a standard cost system. During the year, both the labor rate variance and the labor efficiency variance were unfavorable. Dawn wrote the variances off directly to cost of goods sold. If Dawn had allocated the variances to work in process, finished goods, and cost of goods sold instead, what would have been the effects on current ratio and net income?

13.The Essence of Responsibility Accounting is?

14.A company sells DVD players for $200 per unit. The players have a unit variable cost of $160. The company estimates that it will sell one home entertainment system for every four DVD players sold. Home entertainment systems have a unit variable cost of $460 and sell for $600 per unit. The company's fixed costs are $90,000. Assuming that the sales mix estimate is correct, how many DVD players need to be sold for the company to break even?

15.Skytop Co., a nonprofit entity, is considering acquiring a machine for $80,000 that will produce uniform cash inflows of $25,000 for four years. Skytop evaluates capital projects using discounted cash flows at a cost of capital of 10% per year. Based upon the following table, what action should Skytop take regarding acquisition of the machine, and why?

Future value of $1 for 4 years at 10%$1.464

Present value of $1 for 4 years at 10%$0.683

Future value of $1 ordinary annuity for 4 years at 10%$4.641

Present value of $1 ordinary annuity for 4 years at 10%$3.170

16.Which of the following statements that relate to capital budgeting is true?

A.The impact of taxes on capital budgeting will not make a difference in the decision to purchase new equipment.

B.Accelerated methods of depreciation provide tax shields that are advantageous from a present-value point of view.

C.The depreciation method used for financial accounting reporting and not the depreciation method used for tax purposes should be used in capital budgeting decisions.

D.If the depreciable life of a project is shorter than the expected useful life of the project, then the anticipated after-tax cash flows should be evaluated over the depreciable life.

17. Roger Co. implemented activity-based costing in the current year. To select the appropriate driver for

Cost Pool A, Roger performed regression analyses for two independent variables, Driver 1 and Driver 2, using monthly operating data. The monthly levels of Cost Pool A were the dependent variables in both regressions. Output results from the regression analyses were as follows:

Driver 1Driver 2R squared0.460.80

Intercept$551.00$970.00

X variable (slope)$ 0.55$ 0.33

At the budgeted production level for next month, the levels of Driver 1 and Driver 2 are expected to be

5,880 and 7,000, respectively. Based on this information, what is the budgeted amount for Cost Pool A for next month?

18.Gamma Co., a manufacturer of medical products, had a 10% return on assets and an asset turnover of 4:1. What was Gamma's profit margin on sales?

19.What is the process by which products and services of a business entity are measured and evaluated relative to the best possible levels of performance?

20.The following information pertains to Baxter Co:

Inventory at beginning of year$200,000

Inventory at year end$300,000

Cost of goods sold during the year$500,000

What was Baxter's inventory turnover for the year?

21.How would the following ratios or measures be affected if a company issued additional capital stock for cash?

Total Debt to Working

Total Asset to Capital

22.Darv Co. had a current ratio of 3-to-1 and aquick ratio of 1-to-1. Current liabilities were $322,000. What was the total amount for inventory and prepaid expenses?

23.Which of the following is an essential element of the audit trail in an electronic data interchange (EDI)

system?

24.Carter Co. had the following items on its balance sheet at the end of the current year:

Cash and cash equivalents$ 200,000Short-term investments100,000

Accounts receivable400,000

Inventories600,000

Patent-10 years300,000

Equipment1,000,000

Accumulated depreciation200,000

The amount of current liabilities at the end of the current year was $640,000. What is Carter's working capital at the end of the current year?

25.An issuer's board of directors would ordinarily participate in each of the following activities, except

A. Establishing long-term strategy and objectives to which their information technology system should be aligned.

B. Supervising and monitoring the quality control testing upon the installation of a new information technology system.

C. Ensuring that suitable information technology resources and skills are available to meet the company's strategic objectives.

D. Maintaining awareness of current technology used by the organization to assure its efficiency and effectiveness for financial reporting.