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##### Devry ACCT346 Week 4-7 Assignment

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Question;DeVry University;ACCT346 Weekly Assignment;Week 4;Directions: Your assignment this week is to answer the question below;which has four parts. Please show your work for full credit and use;the boxes provided. Please add more rows or columns to the box if needed.;1.;MountainAir Company has the following selected data for the past year;Units sold during year;30,000;Units produced during year;45,000;Units in ending inventory;15,000;Variable manufacturing cost per unit;$4.50;Fixed manufacturing overhead (in;total);$20,250;Selling price per unit;$12.00;Variable selling and administrative;expense per unit;$1.00;Fixed selling and administrative;expenses (in total);$4,000;There were no units in beginning;inventory.;Required;1a. Prepare an income statement for;last year using absorption costing.;1b. Calculate the value of the ending;inventory using absorption costing.;1c. Prepare an income statement for;last year using variable costing.;1d. Calculate the value of the ending;inventory using variable costing.;DeVry University;ACCT346 Weekly Assignment;Week 5;Directions: Your assignment;this week is to answer the below three questions. Please note that question #1 has 2 parts;part a and part b and question #2 has 3 parts, part a, part b and part;c. Please show your work for full;credit and use the box provided.;Please add more rows or columns to the box if needed.;1. Palmer's Gourmet Chocolates produces and;sells assorted boxed chocolates. The unit selling price is $50, unit;variable costs are $25, and total fixed costs are $2,000.;1a.;How many boxes of chocolates must Palmer's Gourmet Chocolates sell to breakeven?;1b. What are breakeven sales in dollars?;2. Extreme Sports received a special order;for 1,000 units of its extreme motorbike at a selling price of $250 per;motorbike. Extreme Sports has enough extra capacity to accept the order. No;additional selling costs will be incurred. Unit costs to make and sell this;product are as follows: Direct materials, $100, direct labor, $50, variable;manufacturing overhead, $14, fixed manufacturing overhead, $10, and;variable selling costs, $2.;2a. List the relevant costs.;2b. What will be the change in operating;income if Extreme Sports accepts the special order?;2c. Should Extreme Sports accept the special;order? Why or why not?;3. Totally Technology manufactures Cameras;and Video Recorders. The company's product line income statement follows;Camera;Video Recorder;Total;Sales revenue;$3,00,000;$1,00,000;$4,00,000;Cost of goods sold;Variable;$75,000;$49,000;$1,24,000;Fixed;$82,000;$28,000;$1,10,000;Total cost of goods sold;$1,57,000;$77,000;$2,34,000;Gross profit;$1,43,000;$23,000;$1,66,000;Marketing and administrative;expenses;Variable;$25,000;$28,000;$53,000;Fixed;$32,000;$19,000;$51,000;Total marketing and administrative;expenses;$57,000;$47,000;$1,04,000;Operating income (loss);$86,000;(24,000);$62,000;Management is considering;discontinuing the Video Recorder product line. Accountants for the company;estimate that discontinuing the Video Recorder line will decrease fixed;cost of goods sold by $10,000 and fixed marketing and administrative;expenses by $4,000.;Prepare an analysis supporting your;opinion about whether or not the Video Recorder product line should be;discontinued.;DeVry University;ACCT346 Weekly Assignment;Week 5;Directions: Your assignment;this week is to answer the below three questions. Please note that question #1 has 2 parts;part a and part b and question #2 has 3 parts, part a, part b and part;c. Please show your work for full;credit and use the box provided.;Please add more rows or columns to the box if needed.;1. Palmer's Gourmet Chocolates produces and;sells assorted boxed chocolates. The unit selling price is $50, unit;variable costs are $25, and total fixed costs are $2,000.;1a.;How many boxes of chocolates must Palmer's Gourmet Chocolates sell to breakeven?;1b. What are breakeven sales in dollars?;2. Extreme Sports received a special order;for 1,000 units of its extreme motorbike at a selling price of $250 per;motorbike. Extreme Sports has enough extra capacity to accept the order. No;additional selling costs will be incurred. Unit costs to make and sell this;product are as follows: Direct materials, $100, direct labor, $50, variable;manufacturing overhead, $14, fixed manufacturing overhead, $10, and;variable selling costs, $2.;2a. List the relevant costs.;2b. What will be the change in operating;income if Extreme Sports accepts the special order?;2c. Should Extreme Sports accept the special;order? Why or why not?;3. Totally Technology manufactures Cameras;and Video Recorders. The company's product line income statement follows;Camera;Video Recorder;Total;Sales revenue;$3,00,000;$1,00,000;$4,00,000;Cost of goods sold;Variable;$75,000;$49,000;$1,24,000;Fixed;$82,000;$28,000;$1,10,000;Total cost of goods sold;$1,57,000;$77,000;$2,34,000;Gross profit;$1,43,000;$23,000;$1,66,000;Marketing and administrative;expenses;Variable;$25,000;$28,000;$53,000;Fixed;$32,000;$19,000;$51,000;Total marketing and administrative;expenses;$57,000;$47,000;$1,04,000;Operating income (loss);$86,000;(24,000);$62,000;Management is considering;discontinuing the Video Recorder product line. Accountants for the company;estimate that discontinuing the Video Recorder line will decrease fixed;cost of goods sold by $10,000 and fixed marketing and administrative;expenses by $4,000.;Prepare an analysis supporting your;opinion about whether or not the Video Recorder product line should be;discontinued.;DeVry University;ACCT346 Weekly Assignment;Week 6;Directions: Your assignment this week is to answer the two;questions below. Please note that Question #2 has 2 parts, Part A and Part B.;Please show your work for full credit and use the box provided. Please add more;rows or columns to the box if needed.;1. Cave Hardware's;forecasted sales for April, May, June, and July are $200,000, $230,000;$190,000, and $240,000, respectively. Sales are 65% cash and 35% credit with;all accounts receivables collected in the month following the sale. Cost of;goods sold is 75% of sales and ending inventory is maintained at $60,000 plus;10% of the following month's cost of goods sold. All inventory purchases are paid;22% in the month of purchase and 78% in the following month.;What are the cash collections budgeted for June?;2. Madden Corporation;manufactures t-shirts, which is its only product. The standards for t-shirts;are as follows;Standard direct labor cost per hour $17;Standard direct labor hours per t-shirt 0.6;During the month of January, the company produced 1,250;t-shirts. Related production data for the month is as follows;Actual direct labor hours 770;Actual direct labor cost incurred $13,000;2a. What is the direct labor rate variance for the month? Is;it favorable or unfavorable?;2b. What is the direct labor efficiency variance for the;month? Is it favorable or unfavorable?;DeVry University;ACCT346 Weekly Assignment;Week 7;Directions: Your assignment this week is to answer the four questions;below. Please note that Question #1 has 2 parts, Part A and Part B. Please;show your work for full credit and use the box provided. Please add more;rows or columns to the box if needed.;1. Gomez;Corporation is considering two alternative investment proposals with the;following data;Proposal;X;Proposal;Y;Investment;$8,50,000;$4,68,000;Useful life;8;years;8;years;Estimated annual net;$1,25,000;$78,000;cash inflows for 8 years;Residual value;$40,000;$;-;Depreciation method;Straight-line;Straight-line;Required rate of return;14%;10%;1a. How long is the payback period for Proposal X?;1b. What is the accounting rate of return for Proposal Y?;2. You have been;awarded a scholarship that will pay you $500 per semester at the end of each of;the next 8 semesters that you earn a GPA of 3.5 or better. You are a very;serious student and you anticipate receiving the scholarship every semester.;Using a discount rate of 3% per semester, which of the following is the correct;calculation for determining the present value of the scholarship? PLEASE STATE;WHY YOU CHOSE THE ANSWER THAT YOU DID.;A) PV =;$500 ? 3% ? 8;B) PV =;$500 ? (Annuity PV factor, i = 3%, n = 8);C) PV =;$500 ? (Annuity FV factor, i = 6%, n = 4);D) PV =;$1,000 ? (PV factor, i = 3%, n = 4);3. Maersk Metal;Stamping is analyzing a special investment project. The project will require;the purchase of two machines for $30,000 and $8,000 (both machines are;required). The total residual value at the end of the project is $1,500. The;project will generate cash inflows of $11,000 per year over its 8-year life.;If Maersk requires a;6% return, what is the net present value (NPV) of this project? (Use present;value tables or Excel.);4. Hincapie;Manufacturing is evaluating investing in a new metal stamping machine costing;$30,924. Hincapie estimates that it will realize $12,000 in annual cash inflows;for each year of the machine's 3-year useful life.;Approximately, what is the the internal rate of return (IRR);for the machine? (Use present value tables or Excel.)

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