angadbhatia1243

The following cost data relate to Taylor Products Company for the year ended June 30, 2005.

Direct Materials                                                                      $ 55,600

Direct Labor                                                                                72,400

Factory Overhead                                                                       36,500

Work in process inventory, July 1, 2004                                     38,200

Work in process inventory, June 30, 2005                                  34,800

Required:

1. Calculate the manufacturing costs for the year.
2. Calculate the cost of goods manufactured for the year.

Ex 2-5: Iowa Products Company accumulated the following data for 2005.

                                                                                    Jan 1, 2005                 Dec 31, 2005

Inventories:

            Finished Goods                                               $ 52,000                      $ 54,000

            Work in Process                                                 29,600                         27,800

            Raw materials                                                    14,200                         15,000

Direct labor                                                                                                        95,000

Raw material purchase            s                                                                                     138,000

Indirect labor                                                                                                      15,300

Indirect materials and supplies                                                                                       10,800

Factory utilities                                                                                                   18,600

Depreciation expense- Factory                                                                                       14,000

Factory rent                                                                                                         18,000

Payroll taxes- Factory wages                                                                                8,100

Repairs and maintenance                                                                                      6,000

Insurance expense- Factory                                                                                  6,800

Miscellaneous factory expenses                                                                            5,200

Sales                                                                                                                  710,000

Sales discount                                                                                                     12,000

Selling expenses                                                                                                  95,600

General expenses                                                                                                75,300

Interest expenses                                                                                                   7,000

Required:

1. Prepare a statement of cost of goods manufactured.
2. Prepare an income statement (assume an income tax rate of 25%)

For unlimited access to Homework Help, a Homework+ subscription is required.

Ex 2-5: Iowa Products Company accumulated the following data for 2005.

                                                                                    Jan 1, 2005                 Dec 31, 2005

Inventories:

            Finished Goods                                               $ 52,000                      $ 54,000

            Work in Process                                                 29,600                         27,800

            Raw materials                                                    14,200                         15,000

Direct labor                                                                                                        95,000

Raw material purchase            s                                                                                     138,000

Indirect labor                                                                                                      15,300

Indirect materials and supplies                                                                                       10,800

Factory utilities                                                                                                   18,600

Depreciation expense- Factory                                                                                       14,000

Factory rent                                                                                                         18,000

Payroll taxes- Factory wages                                                                                8,100

Repairs and maintenance                                                                                      6,000

Insurance expense- Factory                                                                                  6,800

Miscellaneous factory expenses                                                                            5,200

Sales                                                                                                                  710,000

Sales discount                                                                                                     12,000

Selling expenses                                                                                                  95,600

General expenses                                                                                                75,300

Interest expenses                                                                                                   7,000

Required:

1. Prepare a statement of cost of goods manufactured.
2. Prepare an income statement (assume an income tax rate of 25%)

You are the owner of a lawn service company (LawnCo) thatprovides grounds and maintenance services to a range of corporatecustomers. Customers are expected to pay on the first of eachmonth, in advance of receiving services. One of your corporatecustomers is an eldercare facility whose grounds you havemaintained for many years. The customer has not paid for the lastthree months of services (from October to December 2017);nevertheless, to maintain a positive relationship, your companycontinued to provide mowing and weed control services to theeldercare facility during that time. Your company ceased providingservices in January 2018 and found out in that same month that theeldercare facility filed for bankruptcy in September. Your companynow believes that collection of missed payments is extremelyunlikely.

Your company has already issued financial statements to lendersfor the period ending 12/31/17, which reflected revenue and acorresponding account receivable related to this customer of$10,000 per month for services provided. Those financial statementsalso reflected the company’s standard allowance (reserve) amount onreceivables, of 4% of sales. In total, your company’s averagemonthly sales amount to $500,000.

Your ultimate goal is to evaluate whether receipt of thisinformation indicates you have a change in accountingestimate or whether the customer’s bankruptcy should result inthis event being considered an error in previously issuedfinancial statements.

Cite Codification references for each question and providedetailed calculations when necessary in order to receive fullcredit. As you perform your search for information, document yoursearch following the steps shown in Figure 2.5 on page 47. Attachyour Word search document as an Appendix to your responses.

a) Define the two options above, citing the Codification. Then,state arguments in favor of each alternative.

b) Next, describe the accounting treatment (as required by theCodification) for each alternative, then support your explanationswith draft general entries.

c) Finally, briefly state which treatment appears to be moreappropriate given the circumstances. If you must make anyassumptions in reaching this conclusion, state these.

Figure 2-5 on p.47 is

(Step 1) Browse to the topic you expect will be mostrelevant.

(Step 2) Be sure to check all sources of require reding withingthe topic.

(Step 3) Follow all leads (such as to other topics) that appearto be relevant. Sometimes a single accounting issue can involveconsideration of multiple Codification topics.

(Step 4) As you go along, copy any potentially relevant guidanceyou find into a Word document.

(Step 5) Finally, review the guidance you've collected and weedout (from your Word document) sources that appear to be lessrelevant.

I'd appreciate it if I can get some help for these homework.Thanks.

Your company is evaluating the option of renting some of itscomputing services from a cloud provide. After many discussion,your company is considering renting only the accounting module.Your supervisor has asked you to develop, as soon as possible, ashort document about how this type of service is provided by acloud computing provider and the necessary steps that should betaken to implement this service.

You have a data set of 4096 daily observations and would like to estimate the Hurst exponent for that data like we discussed in the lectures. In the first iteration, you want to operate with two data samples consisting of 2048 non-overlapping observations and in the last iteration you want to have 1024 data samples consisting of 4 non-overlapping observations. How many data clusters do you have in total? You perform the following log-log regression: In(R/S)k = In(C) + HIn(k) + u. The estimated Hurst exponent is 0.72. If you implement the following hypothesis test,

Ho: H = 0.50 versus H1: H > 0.50,

what is your dependency structure under the null hypothesis? What is the corresponding reference distribution under the null hypothesis? Assuming that you apply a standard significance level of 5%, what is the critical value? Assume now that you run the test and your

estimated test statistic has a value of ^ = 1.81. What do you conclude concerning the

dependency structure of your data?

Pure Pharmaceuticals, a company engaging in research on drugs, is having operations in the USA, the United Kingdom, Asia-Pacific region, include Vietnam. The firm is considering adopting cloud computing services which enable the organization to obtain its computing resources and applications from any location via an Internet connection. To be more specific, staff members are then able to receive emails stored in the cloud and share research projects with staff members working in another office easily. In such adoption, Pure Pharmaceuticals has to search for a cloud service provider, a thirdparty vendor providing application delivery, hosting, monitoring, and other services through cloud computing. You are the firm’s consultant and you are requested to provide advice to the board of directors before such adoption.

Required:

a. Perform a risk assessment on the adoption of cloud computing to the firm’s operations,

including both the opportunities and the risks involved.

b. Discuss if there would be any possible change to the existing IT organizational structure

after the adoption of cloud computing.

c. How does adoption of cloud computing affect the control environment of the

organization? What are the roles of the board of directors in the adoption of cloud

computing?

d. Discuss the general IT controls that may be expected in cloud computing environment.