Question & Answer

: Explain the fundamental characteristics of organizing, including division of labor, chain of command, span of management, and centralization versus decentralization.

Compare actual and normal cost systems. Discuss the ways in which they are similar and the ways they differ.

An electron-beam welding operation will join two pieces of steel plate together. The plates are 1.00 in thick. The unit melting energy is 125 Btu/in3. The diameter of the work area focus of the beam is 0.060 in, hence the width of the weld will be 0.060 in. The accelerating voltage is 30 kV and the beam current is 35 milliamp. The heat transfer factor is 0.70 and the melting factor is 0.55. If the beam moves at a speed of 50 in/min, will the beam penetrate the full thickness of the plates?

A face milling operation is not yielding the required surface finish on the work. The cutter is a four-tooth insert type face milling cutter. The machine shop foreman thinks the problem is that the work material is too ductile for the job, but this property tests well within the ductility range for the material specified by the designer. Without knowing any more about the job, what changes in (a) cutting conditions and (b) tooling would you suggest to improve the surface finish?

What is meant by the phrase “double taxation of corporate income”?

For each of the following, determine the expected cash flows. Cash Flow Probability Estimate Assessment (a) $ 4,800 20% 6,300 50% 7,500 30% (b) $ 5,400 30% 7,200 50% 8,400 20% (c) $(1,000) 10% 3,000 80% 5,000 10%

According to the injection molding videos, what are the four primary elements that influence the injection molding process?

Describe how ionic bonding works?

Under the percentage-of-completion method, how are the Construction in Process and the Billings on Construction in Process accounts reported in the balance sheet?

Why is the term pressworking often used for sheet metal processes?

In June 2014, the board of directors for McElroy Enterprises Inc. authorized the sale of $10,000,000 of corporate bonds. Jennifer Grayson, treasurer for McElroy Enterprises Inc., is concerned about the date when the bonds are issued. The company really needs the cash, but she is worried that if the bonds are issued before the company’s year-end (December 31, 2014) the additional liability will have an adverse effect on a number of important ratios. In July, she explains to company president William McElroy that if they delay issuing the bonds until after December 31 the bonds will not affect the ratios until December 31, 2015. They will have to report the issuance as a subsequent event which requires only footnote disclosure. Grayson expects that with expected improved financial performance in 2015, ratios should be better. Instructions (a) What are the ethical issues involved? (b) Should McElroy agree to the delay?

How is a pull system distinguished from a push system in production and inventory control?

A workpart with starting height h = 100 mm is compressed to a final height of 50 mm. During the deformation, the relative speed of the plattens compressing the part = 200 mm/s. Determine the strain rate at (a) h = 100 mm, (b) h = 75 mm, and (c) h = 51 mm.

GAAP requires the statement of cash flows be presented when financial statements are prepared. Instructions (a) Explain the purposes of the statement of cash flows. (b) List and describe the three categories of activities that must be reported in the statement of cash flows. (c) Identify and describe the two methods that are allowed for reporting cash flows from operations. (d) Describe the financial statement presentation of noncash investing and financing transactions. Include in your description an example of a noncash investing and financing transaction.

Dover Company began operations in 2014 and determined its ending inventory at cost and at LCNRV at December 31, 2014, and December 31, 2015. This information is presented below. Cost Net Realizable Value 12/31/14 $346,000 $322,000 12/31/15 410,000 390,000 (a) Prepare the journal entries required at December 31, 2014, and December 31, 2015, assuming that the inventory is recorded at LCNRV and a perpetual inventory system using the cost-of-goods-sold method is used. (b) Prepare journal entries required at December 31, 2014, and December 31, 2015, assuming that the inventory is recorded at cost and a perpetual system using the loss method is used. (c) Which of the two methods above provides the higher net income in each year?

Assume that fracking becomes common across the UK. The result is that supplies of shale gas and oil increase sharply. Trace through the effects of this on the market for oil, gas and the market for other fuels.

Determine the tonnage requirement for the blanking operation in Problem 20.4, given that the stainless steel has a yield strength = 500 MPa, a shear strength = 600 MPa, and a tensile strength = 700 MPa

The financial statements of P&G are presented in Appendix 5B. The company’s complete annual report, including the notes to the financial statements, can be accessed at the book’s companion website, www. wiley.com/college/kieso. Instructions Refer to P&G’s financial statements and accompanying notes to answer the following questions. (a) Under P&G’s stock-based compensation plan, stock options are granted annually to key managers and directors. (1) How many options were granted during 2011 under the plan? (2) How many options were exercisable at June 30, 2011? (3) How many options were exercised in 2011, and what was the average price of those exercised? (4) How many years from the grant date do the options expire? (5) To what accounts are the proceeds from these option exercises credited? (6) What was the number of outstanding options at June 30, 2011, and at what average exercise price? (b) What number of diluted weighted-average common shares outstanding was used by P&G in computing earnings per share for 2011, 2010, and 2009? What was P&G’s diluted earnings per share in 2011, 2010, and 2009? (c) What other stock-based compensation plans does P&G have?

Explain how the conversion feature of convertible debt has a value (a) to the issuer and (b) to the purchaser.

Some of the transactions of Torres Company during August are listed below. Torres uses the periodic inventory method. August 10 Purchased merchandise on account, $12,000, terms 2/10, n/30. 13 Returned part of the purchase of August 10, $1,200, and received credit on account. 15 Purchased merchandise on account, $16,000, terms 1/10, n/60. 25 Purchased merchandise on account, $20,000, terms 2/10, n/30. 28 Paid invoice of August 15 in full. Instructions (a) Assuming that purchases are recorded at gross amounts and that discounts are to be recorded when taken: (1) Prepare general journal entries to record the transactions. (2) Describe how the various items would be shown in the financial statements. (b) Assuming that purchases are recorded at net amounts and that discounts lost are treated as financial expenses: (1) Prepare general journal entries to enter the transactions. (2) Prepare the adjusting entry necessary on August 31 if financial statements are to be prepared at that time. (3) Describe how the various items would be shown in the financial statements. (c) Which of the two methods do you prefer and why?

An NC lathe cuts two passes across a cylindrical workpiece under automatic cycle. The operator loads and unloads the machine. The starting diameter of the work is 3.00 in and its length = 10 in. The work cycle consists of the following steps (with element times given in parentheses where applicable): 1 - Operator loads part into machine, starts cycle (1.00 min); 2 - NC lathe positions tool for first pass (0.10 min); 3 - NC lathe turns first pass (time depends on cutting speed); 4 - NC lathe repositions tool for second pass (0.4 min); 5 - NC lathe turns second pass (time depends on cutting speed); and 6 - Operator unloads part and places in tote pan (1.00 min). In addition, the cutting tool must be periodically changed. This tool change time takes 1.00 min. The feed rate = 0.007 in/rev and the depth of cut for each pass = 0.100 in. The cost of the operator and machine = $39/hr and the tool cost = $2.00/cutting edge. The applicable Taylor tool life equation has parameters: n = 0.26 and C = 900 (ft/min). Determine (a) the cutting speed for minimum cost per piece, (b) the average time required to complete one production cycle, (c) cost of the production cycle. (d) If the setup time for this job is 3.0 hours and the batch size = 300 parts, how long will it take to complete the batch?

A SMAW operation is accomplished in a work cell using a fitter and a welder. The fitter takes 5.5 min to place the unwelded components into the welding fixture at the beginning of the work cycle, and 2.5 min to unload the completed weldment at the end of the cycle. The total length of the several weld seams to be made is 2000 mm, and the travel speed used by the welder averages 400 mm/min. Every 750 mm of weld length, the welding stick must be changed, which takes 0.8 min. While the fitter is working, the welder is idle (resting); and while the welder is working, the fitter is idle. (a) Determine the average arc time in this welding cycle. (b) How much improvement in arc time would result if the welder used FCAW (manually operated), given that the spool of flux-cored weld wire must be changed every five weldments, and it takes the welder 5.0 min to accomplish the change? (c) What are the production rates for these two cases (weldments completed per hour)?

Compare and contrast an employee’s FICA tax payment responsibilities with those of a self-employed taxpayer.

Verify that the derivative of Eq. (24.12) results in Eq. (24.13)

What are the arguments for giving separate accounting recognition to the conversion feature of debentures?