Required 1. Do Problem 5- 30 using the FIFO method of process costing. If you did Problem 5- 30, explain any difference between the cost of work completed and transferred out and the cost of ending work in process in the assembly department under the weighted- average method and the FIFO method. 2. Should Porter’s managers choose the weighted- average method or the FIFO method? Explain briefly. Problem 5- 30 .:. aDegree of completion: direct materials, 100%; conversion costs, 40%. bDegree of completion: direct materials, 100%; conversion costs, 5%.

What-If Analysis As the management accountant for the Tyson Company you have been asked to construct a financial planning model for collection of accounts receivable and then to perform a what-if analysis in terms of the assumption regarding estimated uncollectible accounts. You are provided with the following information:

Collection Pattern for Credit Sales: 75 percent of the company’s credit sales are collected in the month of sale, 20 percent in the month following month of sale, and 5 percent are uncollectible.

Credit Sales: January 2010, $100,000; February 2010, $120,000; March 2010, $110,000.

Required

What is meant by the term what-if analysis?

Generate a spreadsheet model regarding estimated bad debts expense under the following assumptions regarding the rate of uncollectible accounts: 1 percent, 3 percent, 5 percent (base case), and 8 percent. Prepare an estimate of bad debts expense for each of three months, January through March, and for the quarter as a whole.

What is the value to Tyson Company of creating a model and then performing the what-if analysis described above?

Kerensky Corporation, a wholesale company, has provided the following data:

Sales per period

1,000 units

Selling price .

$35 per unit

Variable production cost

$15 per unit

Selling expenses

$5,000 plus 5% of selling price

Administrative expenses

$3,000 plus 10% of selling price

The margin of safety percentage is closest to:

A) 46%

B) 60%

C) 42%

D) 62%

A budget too easily achieved will lead to diminished performance. Do you agree? Explain.

 

Problem 8-1A (Part Level Submission) At December 31, 2014, House Co. reported the following information on its balance sheet.
Accounts receivable $954,030 Less: Allowance for doubtful accounts 81,040
During 2015, the company had the following transactions related to receivables.
1. Sales on account $3,703,890 2. Sales returns and allowances 51,900 3. Collections of accounts receivable 2,804,030 4. Write-offs of accounts receivable deemed uncollectible 89,960 5. Recovery of bad debts previously written off as uncollectible 27,420

(a) Prepare the journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections of accounts receivable. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No

Account Titles and Explanation

Debit

Credit 1.

2.

3.

4.

5.

(To reverse account previously written off.)

(To record the collection of accounts receivable.)