MGT 326 Financial Accounting Fall Term 2009 Professor: Dr. Peter M. (Pete) Bergevin Telephone Number: Cell – 951-288-5996 E-mail: peter.bergevin@cgu.edu Office: Burkle Building—Room 228 Office Hours: Tuesday 6:00 - 7:00 p.m. and by appointment Required Text Financial Accounting for Executives‚ K.R. Ferris and J.S. Wallace‚ Cambridge Business Publishers‚ 2009 ((ISBN 0-97-87279-8-3) Recommended Reading: The Wall Street Journal or the Financial Times
Premium Balance sheet Final examination Asset
2/c Tyler Hames Managerial Accounting Case: A4-61 PROBLEM STATEMENT: Axis Systems specializes in servers for work-group‚ e-commerce and ERP applications. The company’s original job costing system has two direct cost categories: direct materials and direct labor. Overhead is allocated to jobs at the single rate of $22 per direct labor hour. The CFO recently spear headed the allocation issue of jobs and came up with an ABC system to compare to the traditional accounting system. Axis System has
Premium Allocation
certain that the marriage wouldn’t last‚ and expected Chris would be back any day. But time is passing quickly‚ and there is still no word from the desert. The President‚ desperately needing the budget completed‚ has approached you‚ a management accounting student‚ for help in preparing the budget for the coming fiscal year. Your conversations with the President and your investigations of the company’s records have revealed the following information: 1. Peak months for sales correspond with gift-giving
Premium 2008 Balance sheet 2009
1. The overhead allocation rate used in the 1987 model year strategy study at the Automotive Component & Fabrication Plant (ACF) was 435% of direct labor dollar cost. Calculated the overhead allocation rate using the 1987 model year budget. Calculate the overhead allocation rate for each of the model years 1988 through 1990. Are the changes since 1987 in overhead allocation rates significant? Why have these changes occurred? Solution: Based on the given info we calculate Overhead Allocation
Premium Marketing
Time Value of Money Q1. Mr. Sundaram is planning to retire this year. His company can pay him a lump sum retirement payments of Rs 2‚ 00‚000 or Rs 25‚000 life time annuity whichever he chooses. Mr. Sundaram is in good health and estimates to live for at least 20 more years. If his interest rate is 12%‚ which alternative should he choose? Ans Present Value of Annuity 25000*7.469*1.12 = 2‚09‚132 Which is greater than lump sum value of Rs. 2‚00‚000. So Annuity option is better
Premium Time value of money Money Retirement
Assignment 3 Question 1 Question 2 Question 3 a) It would be beneficial for the company as a whole if logs were transferred to the Sawing Division at the suggested price of $61.50 per log. CM from selling externally = $75 - $40.50 - $9.50 = $25/unit $25 x 10‚000 units = $250‚000 CM from selling to Sawing division = $122-Trasnfer costs from Harvesting-Production costs = $122-40.50-9.50-35-4.5-2.5 = $30/unit $30 x 10‚000 units = $300‚000 $300‚000 - $250‚000 = $50‚000 The CM is greater
Premium Marketing Maxima and minima Price
5-5 Production Report‚ No Beginning Inventory Wantler Company Mixing Department ------------------------------------------------- Production Report for 2001 Unit Information Units to account for: Units in beginning WIP 0 Units started 75‚000 Units to account for 75‚000 Units accounted for: Equivalent Units Physical Direct Conversion Flow Materials Costs Units completed 75‚000 75‚000 75‚000 Units in ending WIP 12‚000
Premium Costs Total cost Units of measurement
BE12-1‚ BE12-4‚ BE12-5‚ BE12-6 Exercise: E12-5 BE 12-1 $450‚000 ÷ $50‚000 = 9 years BE 12-4 | | CashFlows | X | 9% DiscountFactor | = | PresentValue | | | | | | | | Present value of net annual cash flowsPresent value of salvage valueCapital investmentNet present value | | $34‚000 0 | XX | 5.53482 .50187 | == | ($188‚184)( 0)( 188‚184)( 200‚000)($ (11‚816) | The reduction in downtime would have to have a present value of at least $11‚816 in order for the project
Premium Cash flow Rate of return Net present value
Total manufacturing cost | | 123‚000 | | Add: Work in process‚ beginning | | 6‚000 | | | | 129‚000 | | Deduct: Work in process‚ ending | | 7‚500 | | Cost of goods manufactured | | $121‚500 | | | | | Problem 3-24 (60 minutes) 1. a. b. | Actual manufacturing overhead costs: | | | Insurance‚ factory | $ 7‚000 | | Depreciation of equipment | 18‚000 | | Indirect labor | 42‚000 | | Property taxes | 9‚000 | | Maintenance
Premium Manufacturing Supply chain management terms Inventory
$ 65‚000 $180‚000 $245‚000 Costs Incurred $425‚000 $690‚000 $1‚115‚000 Total Costs to Account for: $490‚000 $870‚000 $1‚360‚000 Equivalent Units 7‚000 1‚740 Costs Per Equivalent Unit $70.00 $500.00 $570.00 Q3 – Problem 4-28 1. Analysis of Physical Flow of Units: Physical Units in beginning Work in Process: 50‚000 Add: Physical Units started 200‚000 Less: Physical Units completed & transferred out 190‚000 Equals: Physical units in ending Work in
Premium Inventory 1983 1986