Question & Answer

In some instances, accounting principles require a departure from valuing inventories at cost alone. Determine the proper unit inventory price in the following cases. Cases 1 2 3 4 5 Cost $15.90 $16.10 $15.90 $15.90 $15.90 Net realizable value 14.50 19.20 15.20 10.40 16.40 Net realizable value less normal profi t 12.80 17.60 13.75 8.80 14.80 Market (replacement cost) 14.80 17.20 12.80 9.70 16.80

There are 18 correct answers in the following multiple choice questions (some questions have multiple answers that are correct). To attain a perfect score on the quiz, all correct answers must be given. Each correct answer is worth 1 point. Each omitted answer or wrong answer reduces the score by 1 point, and each additional answer beyond the correct number of answers reduces the score by 1 point. Percentage score on the quiz is based on the total number of correct answers. 1.1 Which of the following industries are classified as secondary industries (three correct answers): (a) beverages (b) financial services, (c) fishing, (d) mining, (e) power utilities, (f) publishing, and (g) transportation? 1.2 Mining is classified in which one of the following industry categories: (a) agricultural industry, (b) manufacturing industry, (c) primary industry, (d) secondary industry, (e) service industry, or (f) tertiary industry? Answer. (c). 1.3 Inventions of the Industrial Revolution include which one of the following: (a) automobile, (b) cannon, (c) printing press, (d) steam engine, or (e) sword? 1.4 Ferrous metals include which of the following (two correct answers): (a) aluminum, (b) cast iron, (c) copper, (d) gold, and (e) steel? 1.5 Which one of the following engineering materials is defined as a compound containing metallic and nonmetallic elements: (a) ceramic, (b) composite, (c) metal, or (d) polymer? 1.6 Which of the following processes start with a material that is in a fluid or semifluid state and solidifies the material in a cavity (two best answers): (a) casting, (b) forging, (c) machining, (d) molding, (e) pressing, and (f) turning? 1.7 Particulate processing of metals and ceramics involves which of the following steps (two best answers): (a) adhesive bonding, (b) deformation, (c) forging, (d) material removal, (e) melting, (f) pressing, and (g) sintering? 1.8 Deformation processes include which of the following (two correct answers): (a) casting, (b) drilling, (c) extrusion, (d) forging, (e) milling, (f) painting, and (g) sintering? 1.9 Which one of the following is a machine used to perform extrusion: (a) forge hammer, (b) milling machine, (c) rolling mill, (d) press, (e) torch? 1.10 High-volume production of assembled products is most closely associated with which one of the following layout types: (a) cellular layout, (b) fixed position layout, (c) process layout, or (d) product layout?   1.11 A production planning and control department accomplishes which of the following functions in its role of providing manufacturing support (two best answers): (a) designs and orders machine tools, (b) develops corporate strategic plans, (c) orders materials and purchased parts, (d) performs quality inspections, and (e) schedules the order of products on a machine?

List the advantages often attributed to soldering as an industrial joining process?

Is it possible for a taxpayer to receive rental income that is not subject to taxation? Explain.

As a new intern for the local branch office of a national brokerage firm, you are excited to get an assignment that allows you to use your accounting expertise. Your supervisor provides you the spreadsheet below, which contains data for the most recent quarter for three companies that the firm has been recommending to its clients as “buys.” Each of the companies’ returns on assets has outperformed their industry cohorts in the past. But, given recent challenges in their markets, there is concern that the companies may experience operating challenges and lower earnings. (All numbers in millions, except return on assets.)   Instructions (a) The fair value for each of these companies is lower than the corresponding book value. What implications does this have for each company’s future prospects? (b) To date, none of these companies has recorded goodwill impairments. Your supervisor suspects that they will need to record impairments in the near future, but he is unsure about the goodwill impairment rules. Is it likely that these companies will recognize impairments? Explain. (c) Estimate the amount of goodwill impairment for each company and prepare the journal entry to record the impairment. For each company, you may assume that the book value less the carrying value of the goodwill approximates the fair value of the companies’ net assets. (d) Discuss the effects of your entries in part (c) on your evaluation of these companies based on the return on assets ratio.

What are some of the sustainability-related considerations that managers should acknowledge when evaluating their organisation’s value chain?

A bearing for the output shaft of a 200 hp motor is to be heated to expand it enough to press on the shaft. At 70°F the bearing has an inside diameter of 4.000 in and an outside diameter of 7.000 in. The shaft has an outside diameter of 4.004 in. The modulus of elasticity for the shaft and bearing is 30 x 106 lb/in2 and the coefficient of thermal expansion is 6.7 x 10-6 in/in per °F. (a) At what temperature will the bearing have 0.005 of clearance to fit over the shaft? (b) After it is assembled and cooled, what is the radial pressure between the bearing and shaft? (c) Determine the maximum effective stress in the bearing.

What is a substituted basis as it relates to stock received in exchange for property in a §351 transaction?  What is the purpose of attaching a substituted basis to stock received in a §351 transaction?

Why are marginal external benefits typically likely to decline as output increases? Why is some cases might marginal external benefits be constant at all levels of output or even increase as more is produced?

What are some of the methods used to apply adhesives in industrial production operations?

Consider the most appropriate policy for tackling each of the different types of unemployment.

Explain how banks use credit default swaps. (LO4)

Explain why the moral hazard problem received so much attention during the credit crisis. (LO2)

Are organized stock exchanges used to place newly issued stock? Explain. (LO5)

Presented below are three independent situations. (a) CeCe Winans Corporation incurred the following costs in connection with the issuance of bonds: (1) printing and engraving costs, $12,000; (2) legal fees, $49,000; and (3) commissions paid to underwriter, $60,000. What amount should be reported as Unamortized Bond Issue Costs, and where should this amount be reported on the balance sheet? (b) George Gershwin Co. sold $2,000,000 of 10%, 10-year bonds at 104 on January 1, 2014. The bonds were dated January 1, 2014, and pay interest on July 1 and January 1. If Gershwin uses the straightline method to amortize bond premium or discount, determine the amount of interest expense to be reported on July 1, 2014, and December 31, 2014. (c) Ron Kenoly Inc. issued $600,000 of 9%, 10-year bonds on June 30, 2014, for $562,500. This price provided a yield of 10% on the bonds. Interest is payable semiannually on December 31 and June 30. If Kenoly uses the effective-interest method, determine the amount of interest expense to record if financial statements are issued on October 31, 2014.

Ilya and Olga are brother and sister. Ilya owns 200 shares of stock in Parker Corporation. Is Olga deemed to own Ilya’s 200 shares under the family attribution rules that apply to stock redemptions?

. Identify how structure is influenced by an organization’s strategic goals and its workflow technology

What are the five basic parts of an internal research memo?

Question: The following data were taken from the balance sheet accounts of Masefield Corporation on December 31, 2013. Current assets $540,000 Debt investments 624,000 Common stock (par value $10) 500,000 Paid-in capital in excess of par 150,000 Retained earnings 840,000 Instructions Prepare the required journal entries for the following unrelated items. (a) A 5% stock dividend is declared and distributed at a time when the market price per share is $39. (b) The par value of the common stock is reduced to $2 with a 5-for-1 stock split. (c) A dividend is declared January 5, 2014, and paid January 25, 2014, in bonds held as an investment. The bonds have a book value of $100,000 and a fair value of $135,000.

Describe the process of bookbuilding. Why is bookbuilding sometimes criticized as a means of setting the offer price? (LO3)

Explain why the tax law imposes constructive stock ownership rules on stock redemptions.

Solve Problem 20.19 except that the starting blank size diameter = 175 mm

What is reinsurance? (LO4)

Assume the bonds in BE14-6 were issued for $644,636 and the effective-interest rate is 6%. Prepare the company’s journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry.

Consider the prevailing conditions that could affect the demand for stocks, including inflation, the economy, the budget deficit, the Fed’s monetary policy, political conditions, and the general mood of investors. Based on these conditions, would you consider purchasing stock index options at this time? Offer some logic to support your answer. Which factor do you think will have the biggest impact on stock index option prices? (LO2, LO5)