ACC 206 Week 2 Assignment, Chapter 2 and 3 Exercise

  * Marked fields are required.
Qty*
Price $7.00

ACC 206 Week Two Assignment

Please complete the following exercises below in either Excel or a word document. You must show your work where appropriate. Save the document, and submit it in the appropriate week.

1. Analysis of stockholders' equity

Star Corporation issued both common and preferred stock during 20X6. The stockholders' equity sections of the company's balance sheets at the end of 20X6 and 20X5 follow:        

 

20X6

20X5

Preferred stock, $100 par value, 10%

$580,000

$500,000

Common stock, $10 par value

2,350,000

1,750,000

     

Paid-in capital in excess of par value

   

Preferred

24,000

Common

4,620,000

3,600,000

Retained earnings

8,470,000

6,920,000

Total stockholders' equity

$16,044,000

$12,770,000

  1. Compute the number of preferred shares that were issued during 20X6.
  2. Calculate the average issue price of the common stock sold in 20X6.
  3. By what amount did the company's paid-in capital increase during 20X6?
  4. Did Star's total legal capital increase or decrease during 20X6? By what amount?

2. Bond computations: Straight-line amortization

Southlake Corporation issued $900,000 of 8% bonds on March 1, 20X1. The bonds pay interest on March 1 and September 1 and mature in 10 years. Assume the independent cases that follow.

  • Case A—The bonds are issued at 100.
  • Case B—The bonds are issued at 96.
  • Case C—The bonds are issued at 105.

Southlake uses the straight-line method of amortization.

Instructions:

Complete the following table:

     

3. Definitions of manufacturing concepts
Interstate Manufacturing produces brass fasteners and incurred the following costs for the year just ended:

Materials and supplies used

Brass                                                    $75,000

Repair parts                                         16,000

Machine lubricants                              9,000

Wages and salaries Machine operators             128,000

Production supervisors                                    64,000

Maintenance personnel                                    41,000

Other factory overhead Variable         35,000

Fixed                                                   46,000

Sales commissions                               20,000

Compute:

  1. Total direct materials consumed
  2. Total direct labor
  3. Total prime cost
  4. Total conversion cost

4. Schedule of cost of goods manufactured, income statement

The following information was taken from the ledger of Jefferson Industries, Inc.:

Direct labor

$85,000

 

Administrative expenses

$59,000

Selling expenses

34,000

 

Work in. process:

 

Sales

300,000

 

Jan. 1

29,000

Finished goods

   

Dec. 31

21,000

Jan. 1

115,000

 

Direct material purchases

88,000

Dec. 31

131,000

 

Depreciation: factory

18,000

Raw (direct) materials on hand

Indirect materials used

10,000

Jan. 1

31,000

 

Indirect labor

24,000

Dec. 31

40,000

 

Factory taxes

8,000

     

Factory utilities

11,000

Prepare the following:

  1. A schedule of cost of goods manufactured for the year ended December 31.

5. Manufacturing statements and cost behavior

Tampa Foundry began operations during the current year, manufacturing various products for industrial use. One such product is light-gauge aluminum, which the company sells for $36 per roll. Cost information for the year just ended follows.

Per Unit

Variable Cost

Fixed Cost

Direct materials

$4.50

$ —

Direct labor

6.5

Factory overhead

9

50,000

Selling

70,000

Administrative

135,000

                              

 

 

 


Instructions:

  1. Determine the cost of the finished goods inventory of light-gauge aluminum.
  2. Prepare an income statement for the current year ended December 31
  3. On the basis of the information presented:
    1. Does it appear that the company pays commissions to its sales staff? Explain.
    2. What is the likely effect on the $4.50 unit cost of direct materials if next year's production increases? Why?
Reviews (0) Write a Review
No Reviews. Write a Review