ACC 406 Study Guide - Haplogroup D-M55
147 views4 pages
18 Dec 2014
School
Department
Course
Professor
Get access
Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Related Documents
Related Questions
P11-2A Computevariances, and prepare income statement | ||||||||||||
Ayala Corporation accumulatesthe following data relative to jobs started and finished during themonth of June 2017. | ||||||||||||
Cost and Production Data | Actual | Standard | ||||||||||
Raw materials unit cost | $2.30 | $2.10 | ||||||||||
Raw materials units used | 11,000 | 10,000 | ||||||||||
Direct labor payroll | $120,960 | $120,000 | ||||||||||
Direct labor hours worked | 14,400 | 15,000 | ||||||||||
Manufacturing overheadincurred | $189,500 | |||||||||||
Manufacturing overheadapplied | $189,000 | |||||||||||
Machine hours expected to beused at normal capacity | 42,500 | |||||||||||
Budgeted fixed overhead forJune | $55,250 | |||||||||||
Variable overhead rate permachine hour | $3.00 | |||||||||||
Fixed overhead rate permachine hour | $1.30 | |||||||||||
Overhead is applied on thebasis of standard machine hours. Three hours of machine timeare | ||||||||||||
required for each directlabor hour. The jobs were sold for $400,000. Selling andadministrative | ||||||||||||
expenses were $40,000. Assumethat the amount of raw materials purchased equaled the amount | ||||||||||||
used. | ||||||||||||
Instructions | ||||||||||||
(a) Compute all of thevariances for (1) direct materials and (2) direct labor. | ||||||||||||
(b) Compute the total overheadvariance. | ||||||||||||
(c) Prepare an incomestatement for management. (Ignore income taxes.) | ||||||||||||
NOTE: Enter a number in cellsrequesting a value; enter either a number or a formula in cellswith a "?" . | ||||||||||||
(a)(1) | Total Materials Variance: | ||||||||||
( | AQ | X | AP | ) | minus | ( | SQ | X | SP) | ) | |
( | Value | X | Value | ) | minus | ( | Value | X | Value | ) | |
= | ? | minus | ? | = | Value | ||||||
Materials price variance: | |||||||||||
( | AQ | X | AP | ) | minus | ( | AQ | X | SP | ) | |
( | Value | X | Value | ) | minus | ( | Value | X | Value | ) | |
= | ? | minus | ? | = | Value | ||||||
Materials quantity variance: | |||||||||||
( | AQ | X | SP | ) | minus | ( | SQ | X | SP | ) | |
( | Value | X | Value | ) | minus | ( | Value | X | Value | ) | |
= | ? | minus | ? | = | Value | ||||||
(a)(2) | Total Labor Variance: | ||||||||||
( | AH | X | AR | ) | minus | ( | SH | X | SR | ) | |
( | Value | X | Value | ) | minus | ( | Value | X | Value | ) | |
= | ? | minus | ? | = | Value | ||||||
Labor Price variance: | |||||||||||
( | AH | X | AR | ) | minus | ( | AH | X | SR | ) | |
( | Value | X | Value | ) | minus | ( | Value | X | Value | ) | |
= | ? | minus | ? | = | Value | ||||||
Labor quantity variance: | |||||||||||
( | AH | X | SR | ) | minus | ( | SH | X | SR | ) | |
( | Value | X | Value | ) | minus | ( | Value | X | Value | ) | |
= | ? | minus | ? | = | Value | ||||||
(b) | Total Overhead Variance: | ||||||||||
= | Actual | minus | Overhead | ||||||||
Overhead | Applied | ||||||||||
= | Value | minus | Value | = | Value | ||||||
(c ) | AYALA CORPORATION | ||||||||||
Income Statement | |||||||||||
For the Month Ended June 30, 2017 | |||||||||||
Sales revenue | Value | ||||||||||
Cost of goods sold (at standard) | ? | ||||||||||
Gross profit (at standard) | ? | ||||||||||
Variances | |||||||||||
Material price | Value | ||||||||||
Materials quantity | Value | ||||||||||
Labor price | Value | ||||||||||
Labor quantity | Value | ||||||||||
Overhead | Value | ||||||||||
Totalvariance - favorable | ? | ||||||||||
Gross profit (actual) | ? | ||||||||||
Selling and administrative expenses | Value | ||||||||||
Net income | ? | ||||||||||
Complete P9-3 using the template provided here.
P9-3 Performratio analysis, and discuss change in financial position andoperating results | |||||||||
Condensed balance sheet andincome statement data for Jergan Corporation are presentedhere. | |||||||||
JERGAN CORPORATION | |||||||||
Balance Sheet | |||||||||
December 31 | |||||||||
2017 | 2016 | 2015 | |||||||
Cash | $30,000 | $20,000 | $18,000 | ||||||
Accounts receivable (net) | 50,000 | 45,000 | 48,000 | ||||||
Other current assets | 90,000 | 95,000 | 64,000 | ||||||
Investments | 55,000 | 70,000 | 45,000 | ||||||
Plant and equipment (net) | 500,000 | 370,000 | 358,000 | ||||||
$725,000 | $600,000 | $533,000 | |||||||
Current liabilities | $85,000 | $80,000 | $70,000 | ||||||
Long-term debt | 145,000 | 85,000 | 50,000 | ||||||
Common stock, $10 par | 320,000 | 310,000 | 300,000 | ||||||
Retained Earnings | 175,000 | 125,000 | 113,000 | ||||||
$725,000 | $600,000 | $533,000 | |||||||
JERGAN CORPORATION | |||||||||
Income Statement | |||||||||
For the Year Ended December31 | |||||||||
2017 | 2016 | ||||||||
Sales revenue | $740,000 | $600,000 | |||||||
Less: Sales return and allowances | 40,000 | 30,000 | |||||||
Net sales | 700,000 | 570,000 | |||||||
Cost of goods sold | 425,000 | 350,000 | |||||||
Gross profit | 275,000 | 220,000 | |||||||
Operating expenses (including income taxes) | 180,000 | 150,000 | |||||||
Net income | 95,000 | 70,000 | |||||||
Additional information: | |||||||||
1. | The market price of Jergan's common stock was$7.00, $7.50, and $8.50 for 2015, | ||||||||
2016, and 2017, respectively. | |||||||||
2. | You must compute dividends paid. All dividends werepaid in cash. | ||||||||
Instructions | |||||||||
(a) | Compute the following ratios for 2016 and2017. | ||||||||
(1) Profit margin. | 5. Price-earnings ratio. | ||||||||
(2) Gross profit rate. | 6. Payout ratio. | ||||||||
(3) Asset turnover. | 7. Debt to assets ratio. | ||||||||
(4) Earnings per share. | |||||||||
(b) | Based on the ratios calculated, discuss briefly theimprovement or lack thereof in the | ||||||||
financial position and operating results from 2016to 2017 of Jergan Corporation. | |||||||||
NOTE: Enter a numberin cells requesting a value; enter either a number or a formula incells with a "?" . | |||||||||
(a)(1) | Profit margin | ||||||||
2017 | 2016 | ||||||||
Net income | Value | Value | |||||||
Net sales | Value | Value | |||||||
Profit margin | ? | ? | |||||||
(a)(2) | Gross profit rate | ||||||||
2017 | 2016 | ||||||||
Gross profit | Value | Value | |||||||
Net sales | Value | Value | |||||||
Gross profit rate | ? | ? | |||||||
(a)(3) | Asset turnover | ||||||||
2017 | 2016 | ||||||||
Total assets, 2017 | Value | ||||||||
Total assets, 2016 | Value | Value | |||||||
Total assets, 2015 | Value | ||||||||
Average total assets | ? | ? | |||||||
2017 | 2016 | ||||||||
Net sales | Value | Value | |||||||
Average total assets | Value | Value | |||||||
Asset turnover | ? | ? | |||||||
(a)(4) | Earnings per share | ||||||||
2017 | 2016 | ||||||||
Common shares outstanding, 2017 | Value | ||||||||
Common shares outstanding, 2016 | Value | Value | |||||||
Common shares outstanding, 2015 | Value | ||||||||
Average common shares outstanding | ? | ? | |||||||
2017 | 2016 | ||||||||
Net income - Pfd. Dividends | Value | Value | |||||||
Average common shares outstanding | Value | Value | |||||||
Earnings per share | ? | ? | |||||||
(a)(5) | Price-earnings ratio | ||||||||
2017 | 2016 | ||||||||
Stock price per share | Value | Value | |||||||
Earnings per share | Value | Value | |||||||
Price-earnings ratio | ? | ? | |||||||
(a)(6) | Payout ratio | ||||||||
2017 | 2016 | ||||||||
Prior year's retained earnings | Value | Value | |||||||
Plus: current year net income | Value | Value | |||||||
Less: current year's retained earnings | Value | Value | |||||||
Cash dividends declared | ? | ? | |||||||
2017 | 2016 | ||||||||
Cash dividends declared (common) | Value | Value | |||||||
Net income | Value | Value | |||||||
Payout ratio | ? | ? | |||||||
(a)(7) | Debt to assets ratio | ||||||||
2017 | 2016 | ||||||||
Current Liabilities | Value | Value | |||||||
Long-term debt | Value | Value | |||||||
Total liabilities | ? | ? | |||||||
Total assets | Value | Value | |||||||
Debt to assets ratio | ? | ? | |||||||
After you have completed P9-3,consider the additional question. | |||||||||
1. | Assume that 2017 net income and total assetschanged to $87,000 and total assets to | ||||||||
$700,000. Show the impact of these changes on theratios. | |||||||||