Question: At May 31, 2014, the accounts of

> There are three distinct levels of proof required by law depending upon the kind of case involved. Describe them and when they are used.

> In light of recent court decisions restricting the use of peremptory challenges, should they be eliminated from litigation altogether? Would the elimination of peremptory challenges improve the efficiency of the trial process?

> (a) What were the two basic purposes for Congress’s passing the Landrum-Griffin Act? (b) What are the additional unfair labor practices added by this law?

> (a) List the six unfair labor practices created by the Taft-Hartley Act. (b) Describe a situation for each of these unfair labor practices.

> Ed is discharged for allegedly stealing property from his employer. He asks his union to have him reinstated because his discharge violates the collective bargaining agreement in force. However, the union does not investigate the incident until it is too

> (a) Under what circumstances is the president authorized to order parties in a labor dispute back to work for 80 days? (b) Describe the procedures that must be followed to invoke this cooling-off period.

> (a) Why is it important for courts to use the rule of reason analysis when considering actions allegedly in violation of the Sherman Act? 503 (b) What is the significance of the per se analysis under the rule of reason?

> To secure a loan, Rubin pledges stock that he represents as being marketable and worth approximately $1.7 million. In fact, the stock is nonmarketable and practically worthless. He is 544 charged with violating the Securities Act of 1933. He claims that

> (a) What are the two important documents required by the Securities Act of 1933? (b) Under the provisions of the federal Securities Act of 1933, there are three important time periods concerning when securities may be sold or offered for sale. Name and d

> What are the forces that Justice Cardozo says shape the judicial process? How is the law made? In light of the liberal versus conservative divisions in the courts, are Cardozo’s observations still relevant?

> For several years, Albert acted as a collection agent for Paulette. Recently, Paulette revoked Albert’s authority to collect payments from customers. However, neither Paulette nor Albert told any customers of Albert’s termination. Yesterday, Theresa, one

> Why are concurring and dissenting opinions important?

> Define judicial activism. Compare and contrast judicial restraint and judicial activism.

> A marketing consultant to your firm comments that being ethical in business means nothing more than obeying the law. Discuss.

> (a) The FTC has responsibility for preventing unfair methods of competition and unfair and deceptive business practices. Describe three examples of business activities that could be declared unlawful by the FTC pursuant to these powers. (b) Does the FTC

> A group of lawyers in private practices who regularly acted as court-appointed counsel for indigent defendants in District of Columbia criminal cases agreed at a meeting of the Superior Court Trial Lawyers Association (SCTLA) to stop providing such repre

> (a) Explain the difference between a cease and desist order and a consent order. Which type of order is used most frequently at the FTC for consumer protection? Why do you suppose this type of order is most often used? (b) What is a trade regulation rule

> You are the sales representative for a manufacturer of insulation. A customer that accounts for approximately one-third of your sales suddenly asks for a discount because of the volume of its purchases. You are politely told that a refusal will cause the

> Ortega, an employee of ABC Inc. recently joined a church that forbids working on Saturdays, Sundays, and Mondays. Ortega requested that his employer change his work schedule from eight-hour days, Monday through Friday, to ten-hour days, Tuesday through F

> Ace Tennis Co. hires only employees who speak English. Does this policy illegally discriminate against Hispanic job applicants who speak only Spanish? Discuss.

> Muscles-Are-You Inc. a bodybuilding spa targeted primarily toward male bodybuilders, refused to hire a woman for the position of executive director. The spa’s management stated that the executive director must have a “macho” image to relate well with the

> (a) What are the names given to the three parties typically involved in an agency relationship? (b) Describe the general purpose of the agency relationship.

> (a) What is the “specific” sense of corporate governance? (b) Why might some managers try to artificially raise or “puff up” the market price of their stocks? Describe several ways they could do this.

> The Smelting Department of Mathews Company has the following production and cost data for November. Production: Beginning work in process 2,000 units that are 100% complete as to materials and 20% complete as to conversion costs; units transferred out 8,

> Data for Cascio Company are given in BE16-7. Production records indicate that 18,000 units were transferred out, and 2,000 units in ending work in process were 50% complete as to conversion cost and 100% complete as to materials. Prepare a cost reconcili

> Production costs chargeable to the Finishing Department in June in Cascio Company are materials $16,000, labor $29,500, overhead $18,000. Equivalent units of production are materials 20,000 and conversion costs 19,000. Compute the unit costs for material

> Trek Company has the following production data for April: units transferred out 40,000, and ending work in process 5,000 units that are 100% complete for materials and 40% complete for conversion costs. If unit materials cost is $4 and unit conversion co

> Westerville Company accumulates the following data concerning a mixed cost, using units produced as the activity level. (a) Compute the variable- and fixed-cost elements using the high-low method. (b) Estimate the total cost if the company produces 9,2

> Goode Company has the following production data for selected months. Compute equivalent units of production for materials and conversion costs, assuming materials are entered at the beginning of the process. Ending Work in Process % Complete as to

> Factory labor data for Weber Company are given in BE16-2. Manufacturing overhead is assigned to departments on the basis of 200% of labor costs. Journalize the assignment of overhead to the Assembly and Finishing Departments.

> Data for Weber Company are given in BE16-1. Supporting records show that (a) the Assembly Department used $24,000 of raw materials and $35,000 of the factory labor, and (b) the Finishing Department used the remainder. Journalize the assignment of the c

> Hindi Co. started 3,000 units during the period. Its beginning inventory is 500 units one-fourth complete as to conversion costs and 100% complete as to materials costs. Its ending inventory is 300 units one-fifth complete as to conversion costs and 100%

> Sanchez Co. has zero units of beginning work in process. During the period, 12,000 units were completed, and there were 500 units of ending work in process one-fifth complete as to conversion cost and 100% complete as to materials cost. What were the equ

> At Ely Company, overhead is assigned to production departments at the rate of $5 per machine hour. In July, machine hours were 3,000 in the Machining Department and 2,400 in the Assembly Department. Prepare the entry to assign overhead to production.

> Larissa Company has a unit selling price of $250, variable costs per unit of $170, and fixed costs of $140,000. Compute the break-even point in units using (a) the mathematical equation and (b) contribution margin per unit.

> Weber Company purchases $45,000 of raw materials on account, and it incurs $60,000 of factory labor costs. Journalize the two transactions on March 31 assuming the labor costs are not paid until April.

> Overton Company has gathered the following information. Units in beginning work in process ……………………………………20,000 Units started into production …………………………………………..164,000 Units in ending work in process ………………………………………..24,000 Percent

> The Welding Department of Majestic Company has the following production and manufacturing cost data for February 2014. All materials are added at the beginning of the process. Majestic uses the FIFO method to compute equivalent units. Instructions: Pre

> The ledger of Hannon Company has the following work in process account. Production records show that there were 800 units in the beginning inventory, 30% complete, 1,200 units started, and 1,500 units transferred out. The units in ending inventory were

> The Smelting Department of Polzin Company has the following production and cost data for September. Production: Beginning work in process 2,000 units that are 100% complete as to materials and 20% complete as to conversion costs; units started and finish

> The Cutting Department of Keigi Company has the following production and\ cost data for August. Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process. Keigi Company uses the FIFO method to com

> Using the data in E16-15, assume Royale Mortgage Company uses the FIFO method. Also assume that the applications in process on September 1 were 100% complete as to materials (forms) and 40% complete as to conversion costs. Data in E16-15: Royale Mortgag

> Royale Mortgage Company uses a process cost system to accumulate costs in its loan application department. When an application is completed, it is forwarded to the loan department for final processing. The following processing and cost data pertain to Se

> Remington Shipping, Inc. is contemplating the use of process costing to track the costs of its operations. The operation consists of three segments (departments): receiving, shipping, and delivery. Containers are received at Remington’s

> The Welding Department of Thorpe Company has the following production and manufacturing cost data for February 2014. All materials are added at the beginning of the process. Instructions: Prepare a production cost report for the Welding Department for

> Don Lieberman and Associates, a CPA firm, uses job order costing to capture the costs of its audit jobs. There were no audit jobs in process at the beginning of November. Listed below are data concerning the three audit jobs conducted during November.

> Mary Willis is the advertising manager for Bargain Shoe Store. She is currently working on a major promotional campaign. Her ideas include the installation of a new lighting system and increased display space that will add $24,000 in fixed costs to the $

> Shown below are the job cost related accounts for the law firm of Jack, Bob, and Will and their manufacturing equivalents: Law Firm Accounts …………………………………… Manufacturing Firm Accounts Supplies …………………………………………………… Raw Materials Salaries and Wages Pay

> Tierney Company begins operations on April 1. Information from job cost sheets shows the following. Job 12 was completed in April. Job 10 was completed in May. Jobs 11 and 13 were completed in June. Each job was sold for 25% above its cost in the month

> Enos Printing Corp. uses a job order cost system. The following data summarize the operations related to the first quarter’s production. 1. Materials purchased on account $192,000, and factory wages incurred $87,300. 2. Materials requis

> Torre Corporation incurred the following transactions. 1. Purchased raw materials on account $46,300. 2. Raw materials of $36,000 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $6,800 was classified as in

> A job cost sheet of Sandoval Company is given below. Instructions: (a) Answer the following questions. (1) What are the source documents for direct materials, direct labor, and manufacturing overhead costs assigned to this job? (2) What is the predeter

> In Wayne Company, materials are entered at the beginning of each process. Work in process inventories, with the percentage of work done on conversion costs, and production data for its Sterilizing Department in selected months during 2014 are as follows.

> Manufacturing cost data for Orlando Company, which uses a job order cost system, are presented below. Instructions: Indicate the missing amount for each letter. Assume that in all cases manufacturing overhead is applied on the basis of direct labor cos

> A job order cost sheet for Lowry Company is shown below. Instructions: (a) On the basis of the foregoing data, answer the following questions. (1) What was the balance in Work in Process Inventory on January 1 if this was the only unfinished job? (2) I

> Stine Company uses a job order cost system. On May 1, the company has a balance in Work in Process Inventory of $3,500 and two jobs in process: Job No. 429 $2,000, and Job No. 430 $1,500. During May, a summary of source documents reveals the following.

> Monthly production costs in Pesavento Company for two levels of production are as follows. Indicate which costs are variable, fixed, and mixed, and give the reason for each answer. Cost 2,000 Units 4,000 Units Indirect labor $10,000 5,000 4,000 $20

> Robert Mallory has prepared the following list of statements about process cost accounting. 1. Process cost systems are used to apply costs to similar products that are mass produced in a continuous fashion. 2. A process cost system is used when each fin

> Palmer Golf Accessories sells golf shoes, gloves, and a laser-guided range-finder that measures distance. Shown below are unit cost and sales data. Fixed costs are $630,000 Instructions: (a) Compute the break-even point in units for the company. (b) D

> Express Delivery is a rapidly growing delivery service. Last year, 80% of its revenue came from the delivery of mailing “pouches” and small, standardized delivery boxes (which provides a 20% contribution margin). The other 20% of its revenue came from de

> Qwik Repairs has over 200 auto-maintenance service outlets nationwide. It provides primarily two lines of service: oil changes and brake repair. Oil change–related services represent 70% of its sales and provide a contribution margin ratio of 20%. Brake

> Yard Tools manufactures lawnmowers, weed-trimmers, and chainsaws. Its sales mix and contribution margin per unit are as follows. Yard Tools has fixed costs of $4,200,000. Instructions: Compute the number of units of each product that Yard Tools must s

> Hall Company had sales in 2014 of $1,560,000 on 60,000 units. Variable costs totaled $720,000, and fixed costs totaled $500,000. A new raw material is available that will decrease the variable costs per unit by 25% (or $3.00). However, to process the new

> Comfi Airways, Inc., a small two-plane passenger airline, has asked for your assistance in some basic analysis of its operations. Both planes seat 10 passengers each, and they fly commuters from Comfi’s base airport to the major city in

> In the month of June, Jose Hebert’s Beauty Salon gave 4,000 haircuts, shampoos, and permanents at an average price of $30. During the month, fixed costs were $16,800 and variable costs were 75% of sales. Instructions: (a) Determine the contribution marg

> Creative Crates Co. produces wooden crates used for shipping products by oceanliner. In 2014, Creative incurred the following costs. Wood used in crate production ……………………………………………………. $54,000 Nails (considered insignificant and a variable expense) …………

> Langdon Company produced 9,000 units during the past year, but only 8,200 of the units were sold. The following additional information is also available. Direct materials used ……………………………………………………. $79,000 Direct labor incurred ………………………………………………………$30,

> Finney Inc. has conducted an analysis of overhead costs related to one of its product lines using a traditional costing system (volume-based) and an activity-based costing system. Here are its results. Explain how a difference in the overhead costs bet

> An investment banker is analyzing two companies that specialize in the production and sale of candied yams. Traditional Yams uses a labor-intensive approach, and Auto-Yams uses a mechanized system. CVP income statements for the two companies are shown be

> Arquitectos Interiores of Juarez, Mexico, is contemplating a major change in its cost structure. Currently, all of its drafting work is performed by skilled draftsmen. Alfonso Jiminez, Arquitectos’ owner, is considering replacing the dr

> The CVP income statements shown below are available for Armstrong Company and Contador Company. Instructions: (a) Compute the degree of operating leverage for each company and interpret your results. (b) Assuming that sales revenue increases by 10%, pr

> Billings Company manufactures and sells two products. Relevant per unit data concerning each product follow. Instructions: (a) Compute the contribution margin per machine hour for each product. (b) If 1,000 additional machine hours are available, which

> Dalton Inc. produces and sells three products. Unit data concerning each product is shown below. The company has 2,000 hours of labor available to build inventory in anticipation of the company’s peak season. Management is trying to d

> Spencer Company manufactures and sells three products. Relevant per unit data concerning each product are given below. Instructions: (a) Compute the contribution margin per unit of the limited resource (machine hours) for each product. (b) Assuming 1,5

> Personal Electronix sells iPads and iPods. The business is divided into two divisions along product lines. CVP income statements for a recent quarter’s activity are presented below. Instructions: (a) Determine sales mix percentage and

> All That Blooms provides environmentally friendly lawn services for homeowners. Its operating costs are as follows. Depreciation ………………………………..$1,400 per month Advertising ……………………………………. $200 per month Insurance …………………………………..$2,000 per month Weed and

> Jim Taylor wants Taylor Company to use CVP analysis to study the effects of changes in costs and volume on the company. Taylor has heard that certain assumptions must be valid in order for CVP analysis to be useful. Instructions:Prepare a memo to Jim T

> PCB Corporation manufactures a single product. Monthly production costs incurred in the manufacturing process are shown below for the production of 3,000 units. The utilities and maintenance costs are mixed costs. The fixed portions of these costs are $3

> Kinnard Electronics manufactures two home theater systems: the Elite which sells for $1,400, and a new model, the Preferred, which sells for $1,100. The production cost computed per unit under traditional costing for each model in 2014 was as follows.

> The controller of Dousmann Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs. Instructions: (a) Determine the fixed- and variable-cost components using the high-low method. (b) Prepa

> Family Furniture Corporation incurred the following costs. 1. Wood used in the production of furniture. 2. Fuel used in delivery trucks. 3. Straight-line depreciation on factory building. 4. Screws used in the production of furniture. 5. Sales staff sala

> The controller of Furgee Industries has collected the following monthly expense data for use in analyzing the cost behavior of maintenance costs. Instructions: (a) Determine the fixed- and variable-cost components using the high-low method. (b) Prepare

> Shingle Enterprises is considering manufacturing a new product. It projects the cost of direct materials and rent for a range of output as shown below Instructions: (a) Diagram the behavior of each cost for output ranging from 1,000 to 11,000 units. (b

> Oak Bucket Co., a manufacturer of wood buckets, had the following data for 2013: Sales …………………………………..2,600 units Sales price …………………………$40 per unit Variable costs …………………….$16 per unit Fixed costs ……………………………..$19,500 Instructions: (a) What is the con

> Glacial Company estimates that variable costs will be 62.5% of sales, and fixed costs will total $600,000. The selling price of the product is $4. Instructions: (a) Prepare a CVP graph, assuming maximum sales of $3,200,000. (Note: Use $400,000 increment

> Cottonwood Company reports the following operating results for the month of August: sales $400,000 (units 5,000); variable costs $210,000; and fixed costs $90,000. Management is considering the following independent courses of action to increase net inco

> Naylor Company had $210,000 of net income in 2013 when the selling price per unit was $150, the variable costs per unit were $90, and the fixed costs were $570,000. Management expects per unit data and total fixed costs to remain the same in 2014. The pr

> Cannes Company has the following information available for September 2014. Unit selling price of video game consoles ……………………………$ 400 Unit variable costs ……………………………………………………………..$ 275 Total fixed costs ……………………………………………………………. $52,000 Units sold ………………

> In 2013, Manhoff Company had a break-even point of $350,000 based on a selling price of $5 per unit and fixed costs of $112,000. In 2014, the selling price and the variable costs per unit did not change, but the break-even point increased to $420,000. I

> Warner Inc. sells a high-speed retrieval system for mining information. It provides the following information for the year. Overhead is applied on the basis of direct labor hours. (a) Compute the predetermined overhead rate. (b) Determine the amount of

> Kare Kars provides shuttle service between four hotels near a medical center and an international airport. Kare Kars uses two 10-passenger vans to offer 12 round trips per day. A recent month’s activity in the form of a cost-volume-prof

> In the month of March, Style Salon services 560 clients at an average price of $120. During the month, fixed costs were $21,024 and variable costs were 60% of sales. Instructions: (a) Determine the contribution margin in dollars, per unit, and as a rati

> Turgro Company manufactures a single product. Annual production costs incurred in the manufacturing process are shown below for two levels of production. Instructions: (a) Define the terms variable costs, fixed costs, and mixed costs. (b) Classify each

> Danny Baden’s Verde Vineyards in Oakville, California, produces three varieties of wine: Merlot, Viognier, and Pinot Noir. His winemaster, Russel Hansen, has identified the following activities as cost pools for accumulating overhead and assigning it to

> Santana Corporation manufactures snowmobiles in its Blue Mountain, Wisconsin, plant. The following costs are budgeted for the first quarter’s operations. Machine setup, indirect materials …………………………………..$ 4,000 Inspections ……………………………………………………………………..16

> Quik Prints Company is a small printing and copying firm with three high-speed offset printing presses, five copiers (two color and three black-and-white), one collator, one cutting and folding machine, and one fax machine. To improve its pricing practic

> Perdon Corporation manufactures safes—large mobile safes, and large walk-in stationary bank safes. As part of its annual budgeting process, Perdon is analyzing the profitability of its two products. Part of this analysis involves estima

> Shady Lady sells window coverings (shades, blinds, and awnings) to both commercial and residential customers. The following information relates to its budgeted operations for the current year. The controller, Peggy Kingman, is concerned about the resid

> American Fabrics has budgeted overhead costs of $990,000. It has allocated overhead on a plantwide basis to its two products (wool and cotton) using direct labor hours which are estimated to be 450,000 for the current year. The company has decided to exp

> Ayala Inc. has conducted the following analysis related to its product lines, using a traditional costing system (volume-based) and an activity-based costing system. Both the traditional and the activity-based costing systems include direct materials and