V, V, F, N, V, F, V, M, V, F
3a change in total costs / change in volume of activity = variable rate per machine hour
300 / 500 = $0.60
total mixed cost - total variable cost = total fixed cost
2,600 - 840 = 1
Increase in AR
Decrease in AR
Increase in CA
Decrease in CL
a. 5,950 b. 3,600
a. conversion costs $42,000 b. $1.28 per liter
units accounted for:
completed and transferred out
total units accounted for
TWO MONTSH ENDED JAN. 31 AND FEB. 28
budgeted luggage sets to be sold
sales price per set
5 Management by exception= practive that identifies the significant variances by comparing
the actual financial and operational results with the budgeted figures and brings to the notice
of management for deciding t
1 a. process consting, b. job order costing, c. job order costing, d. job order costing,
e. job order costing, f. job order costing, g. process costing, h. process costing,
i. process costing, j. process costing
a.Accrued Salaries Expense, $1,000.
b.Depreciation was recorded on the truck using the straight-line method.
Assume a useful life of five years and a salvage value of $5,000.
c.Prepaid Insurance for the month has expired.
Before tax recapture of Asses Salvage value
Growth Rate - Revenues
Recapture of Working Capital
Growth Rate - Costs
Year 1 demand for service =
Year 1 units demanded
NAME: Juan Bowling
FIN504 - Financial Management
DATE: October 7, 2016
Chapter 5 - Integrated Case Problem
Time Value of Money
Present Value Fixed Income
Average Expected Inflation Rate
Average Return on Common Stocks
4a NET CASH INFLOW=(average net cash inflow x operating life)
= ( 2,687,256 x 8)
b Net cash inf
variable cost of goods sold
variable selling and adm. Costs
fixed cost of goods sold
fixed selling and adm. costs
The following transactions occurred during March 2013 for the Wainwright Corporation. The
company owns and operates a wholesale warehouse.
Issued 32,500 shares of common stock in exchange for $325,000 in cash.
Purchased equipment at a cost of $36,000.
The following is a December 31, 2013, post-closing trial balance for the Jackson Corporation.
Marketable securities (short term)
Requirement 1. What method should Sunnyside Motors use to account for the invatment in Aero Motors? Give your reasoning.
Sunnyside Motors should use the equity ‘ method to account tor its investment in Aero Motors because the investment represents a 30% o
m a mum n ma :Iownmlmm Slum (mm-w m mu. m 5, 25 Sam mmmd;
invunmym Smnd-MSLSM nu mum-A cm mu Yum: n4 2110.an m. and, ma ﬂipping pm A: . mun-y m Smldn. m "1“ng mm“. mm my. sup. n.
Due Ami-ms mu man 9‘“ w W‘
Direct Material Cost Variance
(AC-SC) x AQ
(1.05-1.10) x 146,000
Direct Labor Cost Variance
(AC - SC) x AQ
(15 - 14) x (410)
Stand. Variable Oh Allocation Rate = budgeted variable
Ch 16 Integrated Case Problem: Working Capital Management
Name: Juan Bowling
Common stock shares owned by Edward G. Anderson
Required Compensating Balance (thousands)
Cost of new plant in GA (thousands)
Days of credit extended by sup