At January 1, 2013, NCI Industries, Inc. was indebted to First Federal Bank

At January 1, 2013, NCI Industries, Inc. was indebted to First Federal Bank under a $290,000, 10% unsecured note. The note was signed January 1, 2011, and was due December 31, 2014. Annual interest was last paid on December 31, 2011. NCI was experiencing severe financial difficulties and negotiated a restructuring of the terms of the debt agreement. First Federal agreed to reduce last year’s interest and the remaining two years’ interest payments to $14,055 each and delay all payments until December 31, 2014, the maturity date. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Required:

1. Prepare the journal entries by First Federal Bank necessitated by the restructuring of the debt at January 1, 2013. (If no entry is required for a particular transaction, select “No journal entry required” in the first account field.)

2. Prepare the journal entries by First Federal Bank necessitated by the restructuring of the debt at December 31, 2013. (If no entry is required for a particular transaction, select “No journal entry required” in the first account field.)

3. Prepare the journal entries by First Federal Bank necessitated by the restructuring of the debt at December 31, 2014. (If no entry is required for a particular transaction, select “No journal entry required” in the first account field.)

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Jones Sodas adds materials at the beginning of the process in Department A

Jones Sodas adds materials at the beginning of the process in Department A. The following information pertains to Department A’s work in process during April:

    Units

Work in process, April 1 (60% complete as to conversion costs)………………… 6,000

Started in April…………………………………………………………………………………….. 40,000

Completed………………………………………………………………………………………….. 30,000

Work in process, April 30 (40% complete as to conversion costs)……………….16,000

a.         Compute the number of equivalent units for materials using the weighted-average method.

b.         Compute the number of equivalent units for conversion costs using the weighted-average method.

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The Barker Company manufactures two models of adding machines, A and B

The Barker Company manufactures two models of adding machines, A and B. The following production and sales data for the month of June are given for 2014:

PROBLEM DATA

Estimated inventory (units) June 1

A

B

Desired inventory (units) June 30

4,500

2,250

Expected sales volume (units)

4,000

2,500

Unit sales price

7,500

5,000

$75

$120

Prepare a sales budget (4.1A) and a production budget (4.1B) for June 2014.

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Comparative statement data for Lionel Company and Barrymore Company

Comparative statement data for Lionel Company and Barrymore Company, two competitors, appear below. All balance sheet data are as of December 31, 2014, and December 31, 2013.

Lionel Company Barrymore Company
2014 2013 2014 2013
Net sales $1,596,503 $339,169
Cost of goods sold 1,030,220 236,993
Operating expenses 278,162 76,890
Interest expense 7,660 2,180
Income tax expense 60,855 7,220
Current assets 405,098 $388,970 86,818 $ 82,352
Plant assets (net) 595,494 572,424 141,242 126,395
Current liabilities 65,199 74,246 18,350 12,649
Long-term liabilities 102,987 83,543 16,529 11,510
Common stock, $5 par 580,000 580,000 137,000 137,000
Retained earnings 252,406 223,605 56,181 47,588

 

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Triton Company’s copy department, which does almost all of the photocopying for the sales

Triton Company’s copy department, which does almost all of the photocopying for the sales department and the administrative department, budgets the following costs for the year, based on the expected activity of copies:

Salaries (fixed) $83,000
Employee benefits (fixed) 10,000
Depreciation of copy machines (fixed) 10,000
Utilities (fixed) 5,000
Paper (variable, 1 cent per copy) 50,000
Toner (variable, 1 cent per copy) 50,000

The costs are assigned to two cost pools, one for fixed and one for variable costs. The costs are then assigned to the sales department and the administrative department. Fixed costs are assigned on a lump-sum basis, 40 percent to sales and 60 percent to administration. The variable costs are assigned at a rate of 2 cents per copy.

Assuming the following copies were made during the year, 2,737,500 for sales and 3,033,000 for administration, calculate the copy department costs allocated to sales.

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Adarmes Adventures manufactures aluminum canoes

Adarmes Adventures manufactures aluminum canoes. In planning for the coming year, CFO Alexis King is considering three different sales targets: 2,500 canoes, 3,000 canoes, and 3,500 canoes. Canoes sell for $804 each. The standard variable cost information for a canoe is as follows.

Direct materials $ 334
Direct labor 154
Variable overhead
  Utilities 35
  Indirect material 30
  Indirect labor 60
Total $ 613

Annual fixed overhead cost is expected to be:

Maintenance $ 18,830
Depreciation 36,300
Insurance 25,840
Rent 29,110
  Total $ 110,080

Alexis King chose to prepare a static budget based on sales of 3,000 canoes. Actual sales were 3,100 canoes at a price of $854 each. The company incurred the following costs for the year:

Direct material $ 1,013,600
Direct labor 452,300
Variable overhead 398,400
Fixed overhead 117,980
  Total $ 1,982,280

Prepare a performance report for the year that shows the flexible budget and sales volume variances. (If operating income is negative, enter amounts using a negative sign preceding the number e.g. -45 or parentheses e.g. (45). Round answers to 0 decimal places, e.g. 125. If variance is zero, select “Not Applicable” and enter 0 for the amounts.)

Sales, revenue, Direct labor, overhead, contribution margin, total variable expenses, operating income, total fixed expenses, direct material, variable expenses. (these fit into the blank)

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Pelligrini, Inc. makes high-quality swimsuits

Pelligrini, Inc. makes high-quality swimsuits. During the year, the company produced 840 suits, using 1,083 yards of material, and the company purchased 897 yards of material for $4,601. The direct materials standard for the swimsuits allows 1.17 yards of material at a standard price of $5 per yard.

Calculate Pelligrini’s direct materials quantity variance for the year. (If variance is zero, select “Not Applicable” and enter 0 for the amounts. Round answer to 0 decimal places, e.g. 15.)

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For 2014, Kasay Company initiated a sales promotion campaign

For 2014, Kasay Company initiated a sales promotion campaign that included the expenditure of an additional $30,000 for advertising. At the end of the year, Scott Brown, the president, is presented with the following condensed comparative income statement:

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1. Prepare a comparative income statement for the two-year period, presenting an analysis of each item in relationship to net sales for each of the years. Round to one decimal place. Enter all amounts as positive numbers.

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MGT 230 Final Exam – Planning involves which of the following

1) Planning involves which of the following?
A. Analyzing current situations
B. Determining rewards for goals achievement
C. Motivating employees
D. Implementing necessary changes

2) _______ is specifying the goals to be mgt 230 final exam achieved and deciding in advance the appropriate actions needed to achieve those goals.
A. Staffing
B. Leading
C. Organizing
D. Planning

3) Advances in genetic engineering and biotechnology are expected to produce some food products that will become available year-round even in northern climates. These changes will provide grocers with an opportunity to reduce their mgt 230 final exam shipping costs while at the same time, offering fresher produce to their customers. These advances are an example of changes in the
A. technological environment
B. economic environment
C. political environment
D. ecological environment

4) _________ trends regarding how people think and behave have major implications for management of the labor force, corporate social actions, and strategic decisions about products and markets.
A. Psychological
B. Economic
C. Technological
D. Societal

5) Which of the following is a step in the decision-making process?
A. Generating an idea
B. Good business planning
C. Evaluating the decision

6) Which is a step in the decision-making process?
A. Resolving and reducing conflict
B. Making the choice
C. Using the lack of structure
D. Delegating a task

7) The targets or ends the manager wants to reach are called
A. goals
B. missions
C. visions
D. strategies

8 In the _______________ stage of the planning process, managers should weigh the advantages, disadvantages, and potential effects of each mgt 230 final exam alternative goal and plan
A. goal and evaluation
B. goal and plan selection
C. implementation
D. alternate goals and plans

9) Tactical planning would include which of the following?
A. Profit goals
B. Design, test, and install the equipment needed to produce a new product line
C. Human resources requirements
D. Return on investment

10) The internal analysis component of the strategic management process assesses the organization’s
A. performance levels
B. competitors
C. industry growth rate
D. product substitutions in the market

11) Suppose you face a question regarding how to handle a defective piece of equipment that your company sold. To tell the customer would cost you a substantial amount of money, but if the equipment fails, it could lead to serious injury of the customer. mgt230 You decide to disclofinal exam se the defect and suggest alternatives to eliminate the risk of injury. This decision employs which ethical approach?

A. Universalism
B. Egoism
C. Relativism
D. Virtue ethics

12) Your organization faces an ethical question. There has been a problem with your accounting process that has resulted in lower profits being reported than were actually earned. You are attending a meeting where senior management is deciding how to handle the situation. The people at the table have varying views of what action to take and why. John wants to report the error immediately because he believes that it is the right thing to do and that will keep them all out of jail. mgt 230 final exam Bruce wants to report the error because it is the honest thing to do. After hearing his colleagues’ opinions, Carlos says he wants to report the error as well because he believes the group is right. Carlos is using which ethical system for his decision making?
A. Universalism
B. Relativism
C. Utilitarianism
D. Virtue ethics
13) In the study by Lawrence and Lorsch, companies in complex, dynamic environments developed _____ levels of differentiation; and _____ levels of integration
A. low; low
B. high; high
C. low; high
D. high; low

14) An aspect of the organization’s internal environment created by job specialization and the division of labor is called
A. differentiation
B. integration
C. division of labor
D. specialization

15) An organization with departmentalization that groups units around products, customers, or geographic regions is called a
A. divisional organization
B. centralized organization
C. matrix organization
D. functional organization

16) Which of the following statements about matrix organizations is true?
A. A matrix organization is the same as a functional organization
B. A matrix organization is the same as a product organization
C. A matrix organization is a hybrid of the functional and divisional organizational forms
D. A matrix organization is considered out-of-date compared to the organic organization

17) An organization with departmentalization that groups units around products, customers, or geographic regions is called a
A. centralized organization
B. matrix organization
C. virtual organization
D. divisional organization

18) Sports International (SI) began business by making shoes for athletes. They soon expanded into making shoes for non-athletic purposes. They now manufacture and distribute clothing, sporting equipment, and protective sports gear worldwide. They are departmentalized by products sold to serious athletes, products sold to “weekend” athletes and products sold to sports teams. SI has utilized which form of departmentalization?
A. Geographic
B. Customer
C. Functional
D. Matrix

19) The trait known as leadership motivation suggests that great leaders
A. can motivate others to work hard
B. can motivate others to become leaders
C. can motivate others to join
D. want to lead

20) A leadership perspective that attempts to identify what effective leaders do and the behaviors they exhibit is referred to as the
A. behavioral approach
B. trait approach
C. transformational leadership
D. strategic approach

21) __________ leadership invites colleagues at the same level to solve problems together
A. Horizontal
B. Collegial
C. Lateral
D. Linear

22) Leaders who relate to others to serve their needs and enhance their personal growth while strengthening the organization are known as
A. lateral leaders
B. shared leaders
C. bridge leaders
D. servant-leaders

23) The basic goal of managing diversity is to:
A. treat all people the same
B. increase the numbers of minorities in business
C. enhance organizational cohesiveness
D. understand and value employee differences

24) Future trends in the labor force include a
A. smaller labor force
B. more experienced labor force
C. more homogenous labor force
D. younger labor force

25) Behavior that gives purpose and meaning to organizations, while envisioning and creating a positive future, is known as
A. strategic leadership
B. supervisory leadership
C. organizational leadership
D. task leadership

26) The correspondence between actions and words that include characteristics such as honesty and credibility is known as
A. drive
B. self-confidence
C. knowledge of the business
D. integrity

27) Owners from two businesses have asked you which type of control system they should utilize. To help you make your decision, they have each provided a brief description of their organization. Alpha Omega, Inc., is a large corporation built in the 1950s. They produce chemical concentrates for industrial cleaning. Their organization uses a strict set of rules and regulations with their workforce. They have the ability to track a large amount of data using statistical techniques. Mid-Atlantic Health is a regional medical center. They want to use a control system that will allow them to tie pricing of services and profits to specific services in the medical center. The control systems that should be used in the scenarios above were developed by
A. William Ouchi
B. Xerox
C. Frederick Taylor
D. Motorola

28) Your manager is speaking to a group of employees about a problem in your department. Employees are not complying with the rules regarding clocking in and clocking out each day. The rules in this situation are very important as employees will not receive their correct pay if the clocking procedures are not followed. There are three suggestions being considered to address this problem.
Option 1 describes which approach to bureaucratic control?

A. Feedback
B. Concurrent
C. Feedforward
D. Market

29) Suppose you are interviewing the CEO of a large company. The CEO is telling you about his or her job as a manager and how he or she spends time. Using the description below, which function of management is the CEO most likely describing in this example?
“My job, for some part of each day, is to empower our employees to think of things in new and different ways, not just to come to work and complete the tasks on a list.”
A. Organizing
B. Leading
C. Controlling
D. Decision making

30) Suppose you are interviewing the CEO of a large company. The CEO is telling you about his or her job as a manager and how he or she spends time. Using the description below, which function of management is the CEO most likely describing in this example?
“Every six months or so, my senior management team and I meet to discuss the goals that will be achieved over the next year, three years, and beyond. We then make sure we are clear on who will take responsibility to see that the appropriate actions are undertaken to achieve our goals within the time frame we set.”
A. Planning
B. Organizing
C. Leading
D. Decision making

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Timeless Timepieces produces and sells watches

Timeless Timepieces produces and sells watches. The following data are available for various activies within the company:

Calculate the overhead rates for each of the three activities

Activity Allocation Base Number of Activities Overhead Cost
Unpacking Number of boxes unpacked 10000 $40,000
Inspecting Number of batches inspected 1800 $36,000
Packing Number of watches packed 56000 $28,000

 

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