Question & Answer

Four products are to be manufactured in Department A, and it is desired to determine how to allocate resources in that department to meet the required demand for these products for a certain week. For product 1, demand = 750/wk, setup time = 6 hr, and operation time = 4.0 min. For product 2, demand = 900/wk, setup time = 5 hr, and operation time = 3.0 min. For product 3, demand = 400/wk, setup time = 7 hr, and operation time = 2.0 min. For product 4, demand = 400/wk, setup time = 6 hr, and operation time = 3.0 min. The plant normally operates one shift (7.0 hours per shift), five days per week and there are currently 3 work centers in the department. Propose a way of scheduling the machines to meet the weekly demand.

When a corporation’s S election is terminated midyear, what options does the corporation have for allocating the annual income between the S corporation short year and the C corporation short year?

What happens to a ceramic material when it is sintered?

Arruza Co. is considering switching from the specific-goods LIFO approach to the dollar-value LIFO approach. Because the financial personnel at Arruza know very little about dollar-value LIFO, they ask you to answer the following questions. (a) What is a LIFO pool? (b) Is it possible to use a LIFO pool concept and not use dollar-value LIFO? Explain. (c) What is a LIFO liquidation? (d) How are price indexes used in the dollar-value LIFO method? (e) What are the advantages of dollar-value LIFO over specific-goods LIFO?

On January 1, 2014, Burke Corporation signed a 5-year noncancelable lease for a machine. The terms of the lease called for Burke to make annual payments of $8,668 at the beginning of each year, starting January 1, 2014. The machine has an estimated useful life of 6 years and a $5,000 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Burke uses the straight-line method of depreciation for all of its plant assets. Burke’s incremental borrowing rate is 10%, and the Lessor’s implicit rate is unknown. Instructions (a) What type of lease is this? Explain. (b) Compute the present value of the minimum lease payments. (c) Prepare all necessary journal entries for Burke for this lease through January 1, 2015.

Explain the liquidity premium theory. (LO3)

Why is the relationship between interest rates and bond prices important to financial institutions? (LO1)

Describe the ways in which the timing strategy has limitations.

What are electronic communication networks? (LO2)

What is stretch forming?

A critic recently claimed that hedge funds increase market volatility when they publicize (and document) that a public corporation exaggerated its earnings. The critic argued that hedge funds should not be allowed to make such public statements and should not be allowed to take short positions that bet against the firm that is being criticized. Write a short essay that supports or refutes this opinion.

Many financial institutions borrow heavily in the money markets using mortgages and mortgage-backed securities as collateral. Write a short essay about the lessons of the credit crisis to the deficit units and the surplus units that participate in the money markets. Should money markets be regulated to a greater degree to ensure proper collateral in money markets?

Is there any truth in the saying that the price of a good is a reflection of its quality?

Briefly describe some of the similarities and differences between GAAP and IFRS with respect to statement of financial position (balance sheet) reporting.

1.       You have been hired to manage a 20-person staff for Nightlight Travels, a travel agency in Las Vegas. For a full year, sales have been hammered by the COVID-19 pandemic, and staff morale has plummeted as key employees left for positions in more secure industries. The few remaining key customer relationships have been damaged by the sloppy and unprofessional work habits of the remaining staff members. Your first responsibility as a new manager is to create next year’s budget for all planned expenditures. But first you must decide if you will adopt a hierarchical approach or a decentralized approach to control. Which would you choose, and why?

A cylindrical workpart has a diameter = 2.5 in and a height = 4.0 in. It is upset forged to a height =2.75 in. Coefficient of friction at the die-work interface = 0.10. The work material has a flow curve with strength coefficient = 25,000 lb/in2 and strain hardening exponent = 0.22. Determine the plot of force vs. work height. Use of a spreadsheet calculator is recommended.

Corrs Company began operations in 2013 and determined its ending inventory at cost and at lower-of-cost-or-market at December 31, 2013, and December 31, 2014. This information is presented below. Cost Lower-of-Cost-or-Market 12/31/13 $346,000 $327,000 12/31/14 410,000 395,000 Instructions (a) Prepare the journal entries required at December 31, 2013, and December 31, 2014, assuming that the inventory is recorded at market, and a perpetual inventory system (direct method) is used. (b) Prepare journal entries required at December 31, 2013, and December 31, 2014, assuming that the inventory is recorded at cost and an allowance account is adjusted at each year-end under a perpetual system. (c) Which of the two methods above provides the higher net income in each year?

Using the facts from the previous problem, when should Hank send the bill if he expects his marginal tax rate to be 35 percent next year? 24 percent next year?

On December 31 of the current year, a taxpayer prepays an advertising company to provide advertising services for the next 10 months. Using the 12-month rule and the economic performance rules, contrast when the taxpayer would be able to deduct the expenditure if the taxpayer uses the cash method of accounting versus if the taxpayer uses the accrual method of accounting.

How is antidilution determined when multiple securities are involved?

What is a copolymer?

Presented below is the December 31 trial balance of New York Boutique.   Instructions (a) Construct T-accounts and enter the balances shown. (b) Prepare adjusting journal entries for the following and post to the T-accounts. (Omit explanations.) Open additional T-accounts as necessary. (The books are closed yearly on December 31.) (1) Bad debt expense is estimated to be $1,400. (2) Equipment is depreciated based on a 7-year life (no salvage value). (3) Insurance expired during the year $2,550. (4) Interest accrued on notes payable $3,360. (5) Sales salaries and wages earned but not paid $2,400. (6) Advertising paid in advance $700. (7) Office supplies on hand $1,500, charged to Supplies Expense when purchased. (c) Prepare closing entries and post to the accounts.

Why are bank regulators more concerned about a large bank failure than a small bank failure? (LO6)

‘Both short-run and long-run average cost curves may be shaped, but the explanations for their respective shapes are quite different.’ Explain this statement

(Threshold Concept 2) 1. Would you ever swap things with friends if both of you did not gain? Explain your answer. (Threshold Concept 2) 2. Give one or two examples of involuntary (i.e. compulsory) economic interaction where one side gains but the other loses. (Threshold Concept 3) 1. If global warming affects all of us adversely, why in a purely market economy would individuals and firms continue with activities that contribute towards global warming? (Threshold Concept 3) 2. In what ways do your own consumption patterns adversely affect other people?