1. (TCO 1) Please state at least five differences between managerial accounting and financial accounting.

2. (TCO 10) (a) What is participative budgeting (5 points)? (b) Please state at least two advantages of participative budgeting (10 points). (c) Please state at least two disadvantages of participative budgeting (10 points). (Points : 25)

3. (TCO 2) James Inc. estimates that its employees will utilize 400,000 machine hours during the coming year. Total overhead costs are estimated to be $8,800,000 and direct labor hours are estimated to be 200,000. Actual machine hours are 420,000. Actual labor hours are 225,000. If James Inc. allocates overhead based on machine hours, what is the predetermined manufacturing overhead rate? (Points : 25)

4. (TCO 4) Johnson Company produces and sells a single product whose selling price is $80.00 per unit and whose variable expense is $50.00 per unit. The company’s fixed expense is $270,000 per month.(a) What is the CM ratio (express your answer as a percentage to two decimal places)? (5 points)(b) How many units must be sold to break-even for the month? (10 points)(c) How many units do we need to sell to earn a profit of $240,000 for the month? (10 points) (Points : 25)

5. (TCO 3) XYZ Company uses process costing to track its costs in two sequential production departments: Forming and Finishing. The following information is provided regarding the Forming department.Forming DepartmentMonth Ended June 30Unit informationBeginning work in process, June 1 — 6,000Started into production during June — 30,000Completed and transferred to Finishing department during June — 22,000Ending work in process, June 30 (25% complete as to direct materials and 40% complete as to conversion costs) — 14,000 Cost informationBeginning work in process as of June 1 consists of $10,000 of direct materials costs and $5,500 of conversion costs) — $15,500Direct materials used in June — $27,000Conversion costs incurred in June — $14,850Required(a) Calculate the equivalent units for conversion costs. (Show your work)(b) Calculate the cost per equivalent unit for conversion costs. (Show your work) (Points : 25)

6. (TCO 5) Hank Company manufactures and sells one product. Sales and production information is contained below.·         Selling price per unit $65·         Variable manufacturing costs per unit produced (DM, DL, and variable MOH)  $36·         Variable operating expenses per unit sold $6·         Fixed manufacturing overhead (MOH) in total for the year $216,000·         Fixed operating expenses in total for the year $75,000·         Units produced during the year 18,000·         Units sold during the year 15,000 (a) Prepare the income statement using variable costing. (10 points)(b) Prepare the income statement using absorption costing. (10 points) (c) Please explain the difference in operating income between the two methods. (5 points) (Points : 25)

7. (TCO 8) Bestick Company manufactures and sells trophies for winners of athletic events. The company normally charges $65 per trophy. The average costs for a trophy is shown below.Direct materials:                               $15Direct labor:                                       10Variable manufacturing overhead:           5Variable marketing expenses:                3Fixed manufacturing overhead:             12 ($1,200,000 fixed manufacturing overhead/100,000 trophies)Total costs:                                       $45Bestick Company has enough idle capacity to accept a one-time only special order for 1,000 trophies at $55 per trophy. Bestick Company will not incur any variable marketing expenses for this order and no additional fixed costs. Required:Should the company accept this special order? Please state your decision and provide numerical support for your decision. (Points : 25)

8. (TCO 7) Lee Company makes 30,000 units per year of Part X for use in one of its products. Lee Company incurred the following manufacturing costs when producing the 30,000 units of Part X.  Direct materials                                      $800,000Direct labor                                                450,500Variable manufacturing overhead           95,000Fixed manufacturing overhead              110,000Total                                                       $1,455,500 RequiredAssume Lee Company has no alternative use for the facilities presently devoted to production of Part X and that none of the fixed costs are avoidable. If the outside supplier offers to sell Part X for $45.00 each, should Lee Company accept the offer? Please clearly state your answer and support your answer with appropriate calculations. (Points : 25)

9. (TCO 9) Sampson Corp buys equipment for $95,000 that will last for 7 years. The equipment will generate cash flows of $22,000 per year and will have no salvage value at the end of its life. Ignore taxes. Use 16% required rate of return.Required (a) What is the present value (PV) of this investment at 16%? (5 points) (b) What is the net present value (NPV) of this investment? Should Sampson Corp buy the equipment based on NPV? Justify your decision. (10 points) (c) What is the internal rate of return (IRR) of this investment? (5 points)(d) What is the payback period? (5 points) (Points : 25)

Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.