Question & Answer

A 12-inch diameter silicon wafer has a processable area that is circular with a diameter = 11.4 in. The IC chips that will be fabricated on the wafer surface are square with 0.75 in on a side, including an allowance for subsequent chip separation. However, the processable area on each chip is only 0.60 in by 0.60 in. The density of circuits within each chip’s processable area is 100,000 circuits per square inch. (a) How many IC chips can be placed onto the wafer? (b) Using Rent’s Rule with C = 3.8 and m = 0.43, how many input/output terminals (pins) will be needed for each chip package?

A 250 mm diameter silicon wafer has a processable area that is circular with a diameter = 225 mm. The IC chips that will be fabricated on the wafer surface are square with 20 mm on a side. However, the processable area on each chip is only 18 mm by 18 mm. The density of circuits within each chip’s processable area is 465 circuits per mm2. (a) How many IC chips can be placed onto the wafer? (b) Using Rent’s Rule with C = 4.5 and m = 0.35, how many input/output terminals (pins) will be needed for each chip package?

A cylindrical riser is to be used for a sand-casting mold. For a given cylinder volume, determine the diameter-to-length ratio that will maximize the time to solidify.

A product is produced in batches. Batch size = 2000 units. Annual demand = 50,000 units, and unit cost of the product = $4.00. Setup time to run a batch = 2.5 hr, cost of downtime on the affected equipment is figured at $250/hr, and annual holding cost rate = 30%. What would the annual savings be if the product were produced in the economic order quantity?

Assume a financial institution has more rate-sensitive assets than rate-sensitive liabilities. Would it be more likely to be adversely affected by an increase or decrease in interest rates? Should it purchase or sell interest rate futures contracts in order to hedge its exposure? (LO2)

Presented below are a number of operational guidelines and practices that have developed over time. Instructions Select the assumption, principle, or constraint that most appropriately justifies these procedures and practices. (Do not use qualitative characteristics.) (a) Fair value changes are not recognized in the accounting records. (b) Financial information is presented so that investors will not be misled. (c) Intangible assets are capitalized and amortized over periods benefited. (d) Repair tools are expensed when purchased. (e) Agricultural companies use fair value for purposes of valuing crops. (f) Each enterprise is kept as a unit distinct from its owner or owners. (g) All significant post-balance-sheet events are reported. (h) Revenue is recorded at point of sale. (i) All important aspects of bond indentures are presented in financial statements. (j) Rationale for accrual accounting. (k) The use of consolidated statements is justified. (l) Reporting must be done at defined time intervals. (m) An allowance for doubtful accounts is established. (n) Goodwill is recorded only at time of purchase. (o) A company charges its sales commission costs to expense.

The interest rate on a one-year loan can be decomposed into a one-year risk-free (free from default risk) component and a risk premium that reflects the potential for default on the loan in that year. A change in economic conditions can affect the risk-free rate and the risk premium. The risk-free rate is usually affected by changing economic conditions to a greater degree than the risk premium. Explain how a weaker economy will likely affect the risk-free component, the risk premium, and the overall cost of a one-year loan obtained by (1) the Treasury, and (2) a corporation. Will the change in the cost of borrowing be more pronounced for the Treasury or for the corporation? Why? (LO2)

In problem 9.3, what is the predicted value for the modulus of elasticity (a) in the longitudinal direction and (b) the perpendicular to the carbon fibers?

1.       Some people argue that the matrix structure should be adopted only as a last resort because the dual chains of command can create more problems than they solve. Discuss. Do you agree or disagree? Why?

New financial technologies are widely used in regulated sectors like finance and banking. Do you think that regulatory scrutiny hinders financial innovation and could even impede its progress, or do you think regulations shouldn’t have an impact on the advancement of fintech? (LO5)

Explain why the existence of asymmetric information may be damaging for both parties in an economic exchange, not only for the one who has incomplete information.

Presented below is a schedule of property dispositions for Hollerith Co.   The following additional information is available. Land: On February 15, a condemnation award was received as consideration for unimproved land held primarily as an investment, and on March 31, another parcel of unimproved land to be held as an investment was purchased at a cost of $35,000. Building: On April 2, land and building were purchased at a total cost of $75,000, of which 20% was allocated to the building on the corporate books. The real estate was acquired with the intention of demolishing the building, and this was accomplished during the month of November. Cash proceeds received in November represent the net proceeds from demolition of the building. Warehouse: On June 30, the warehouse was destroyed by fire. The warehouse was purchased January 2, 2011, and had depreciated $16,000. On December 27, the insurance proceeds and other funds were used to purchase a replacement warehouse at a cost of $90,000. Machine: On December 26, the machine was exchanged for another machine having a fair value of $6,300 and cash of $900 was received. (The exchange lacks commercial substance.) Furniture: On August 15, furniture was contributed to a qualified charitable organization. No other contributions were made or pledged during the year. Automobile: On November 3, the automobile was sold to Jared Winger, a stockholder. Instructions Indicate how these items would be reported on the income statement of Hollerith Co.

From inception of operations to December 31, 2014, Fortner Corporation provided for uncollectible accounts receivable under the allowance method. Provisions were made monthly at 2% of credit sales, bad debts written off were charged to the allowance account; recoveries of bad debts previously written off were credited to the allowance account, and no year-end adjustments to the allowance account were made. Fortner’s usual credit terms are net 30 days The balance in Allowance for Doubtful Accounts was $130,000 at January 1, 2014. During 2014, credit sales totaled $9,000,000, interim provisions for doubtful accounts were made at 2% of credit sales, $90,000 of bad debts were written off, and recoveries of accounts previously written off amounted to $15,000. Fortner installed a computer system in November 2014, and an aging of accounts receivable was prepared for the first time as of December 31, 2014. A summary of the aging is as follows. Classifi cation by Balance in Estimated % Month of Sale Each Category Uncollectible November–December 2014 $1,080,000 2% July–October 650,000 10% January–June 420,000 25% Prior to 1/1/14 150,000 80% $2,300,000 Based on the review of collectibility of the account balances in the “prior to 1/1/14” aging category, additional receivables totaling $60,000 were written off as of December 31, 2014. The 80% uncollectible estimate applies to the remaining $90,000 in the category. Effective with the year ended December 31, 2014, Fortner adopted a different method for estimating the allowance for doubtful accounts at the amount indicated by the year-end aging analysis of accounts receivable. Instructions (a) Prepare a schedule analyzing the changes in Allowance for Doubtful Accounts for the year ended December 31, 2014. Show supporting computations in good form. (Hint: In computing the 12/31/14 allowance, subtract the $60,000 write-off.) (b) Prepare the journal entry for the year-end adjustment to Allowance for Doubtful Accounts balance as of December 31, 2014.

Increasing current is applied to a workpart surface in an electroplating process according to the relation I = 12.0 + 0.2t, where I = current, amps; and t = time, min. The plating metal is chromium, and the part is submersed in the plating solution for a duration of 20 min. What volume of coating will be applied in the process?

Below is the net income of Anita Ferreri Instrument Co., a private corporation, computed under the three inventory methods using a periodisystem. FIFO Average-Cost LIFO 2012 $26,000 $24,000 $20,000 2013 30,000 25,000 21,000 2014 28,000 27,000 24,000 2015 34,000 30,000 26,000 Instructions (Ignore tax considerations.) (a) Assume that in 2015 Ferreri decided to change from the FIFO method to the average-cost method of pricing inventories. Prepare the journal entry necessary for the change that took place during 2015, and show net income reported for 2012, 2013, 2014, and 2015. (b) Assume that in 2015 Ferreri, which had been using the LIFO method since incorporation in 2012, changed to the FIFO method of pricing inventories. Prepare the journal entry necessary to record the change in 2015 and show net income reported for 2012, 2013, 2014, and 2015.

In a certain pressing operation, the metallic powder fed into the open die has a packing factor of 0.5. The pressing operation reduces the powders to 2/3 of their starting volume. In the subsequent sintering operation, shrinkage amounts to 10% on a volume basis. Given that these are the only factors that affect the structure of the finished part, determine its final porosity.

Reciprocal method. Paul’s Valley Protection Service has three support departments (S1, S2 and S3) and three operating departments (P1, P2, and P3). The direct costs of each department are $30 000 for S1, $20 000 for S2, and $40 000 for S3. The proportions of service provided by each support department to the others are given in the following table. Required Using the reciprocal method, allocate the support department costs to the operating departments.

You are compiling the consolidated financial statements for Winsor Corporation International. The corporation’s accountant, Anthony Reese, has provided you with the segment  shown on the next page. Major Segments of Business WCI conducts funeral service and cemetery operations in the United States and Canada. Substantially all revenues of WCI’s major segments of business are from unaffi liated customers. Segment information for fi scal 2015, 2014, and 2013 follows. (thousands) Funeral Floral Cemetery Real Estate Dried Whey Limousine Consolidated Revenues 2015 $302,000 $10,000 $ 73,000 $ 2,000 $7,000 $12,000 $406,000 2014 245,000 6,000 61,000 4,000 4,000 4,000 324,000 2013 208,000 3,000 42,000 3,000 1,000 3,000 260,000 Operating Income 2015 74,000 1,500 18,000 (36,000) 500 2,000 60,000 2014 64,000 200 12,000 (28,000) 200 400 48,800 2013 54,000 150 6,000 (21,000) 100 350 39,600 Capital Expenditures 2015 26,000 1,000 9,000 400 300 1,000 37,700 2014 28,000 2,000 60,000 1,500 100 700 92,300 2013 14,000 25 8,000 600 25 50 22,700 Depreciation and Amortization 2015 13,000 100 2,400 1,400 100 200 17,200 2014 10,000 50 1,400 700 50 100 12,300 2013 8,000 25 1,000 600 25 50 9,700 Identifi able Assets 2015 334,000 1,500 162,000 114,000 500 8,000 620,000 2014 322,000 1,000 144,000 52,000 1,000 6,000 526,000 2013 223,000 500 78,000 34,000 500 3,500 339,500 Instructions Determine which of the above segments must be reported separately and which can be combined under the category “Other.” Then, write a one-page memo to the company’s accountant, Anthony Reese, explaining the following. (a) What segments must be reported separately and what segments can be combined. (b) What criteria you used to determine reportable segments. (c) What major items for each must be disclosed.

There are 14 correct answers in the following multiple choice questions (some questions have multiple answers that are correct). To attain a perfect score on the quiz, all correct answers must be given. Each correct answer is worth 1 point. Each omitted answer or wrong answer reduces the score by 1 point, andeach additional answer beyond the correct number of answers reduces the score by 1 point. Percentage on the quiz is based on the total number of correct answers. 35.1 The second level of packaging refers to which one of the following: (a) component to printed circuit board, (b) IC chip to package, (c) intraconnections on the IC chip, or (d) wiring and cabling connections? 35.2 Surface-mount technology is included within which one of the following levels of packaging: (a) zeroth, (b) first, (c) second, (d) third, or (e) fourth? 35.3 Card-on-board (COB) packaging refers to which one of the following levels in the electronics packaging hierarchy: (a) zeroth, (b) first, (c) second, (d) third, or (e) fourth? 35.4 Which of the following polymeric materials is commonly used as an ingredient in the insulation layer of a printed circuit board (two correct answers): (a) copper, (b) E-glass, (c) epoxy, (d) phenolic, (e) polyethylene, and (f) polypropylene? 35.5 Typical thickness of the copper layer in a printed circuit board is which one of the following: (a) 0.100 inch, (b) 0.010 inch, (c) 0.001 inch, or (d) 0.0001 inch? 35.6 Photolithography is widely used in PCB fabrication. Which of the following is the most common resist type used in the processing of PCBs: (a) negative resists or (b) positive resists? 35.7 Which of the following plating processes has the higher deposition rate in PCB fabrication: (a) electroless plating or (b) electroplating? 35.8 In addition to copper, which one of the following is another common metal plated onto a PCB: (a) aluminum, (b) gold, (c) nickel, or (d) tin? 35.9 Which of the following are the soldering processes used to attach components to printed circuit boards in through-hole technology (two best answers): (a) hand soldering, (b) infrared soldering, (c) reflow soldering, (d) torch soldering, and (e) wave soldering? 35.10 In general, which of the following technologies results in greater problems during rework: (a) surface-mount technology, or (b) through-hole technology? 35.11 Which of the following electrical connection methods produce a separable connection (two correct answers): (a) crimping of terminals, (b) press fitting, (c) soldering, (d) terminal blocks, and (e) sockets?

1.      Which component of the AMPS model addresses the question of the best way for management accountants to communicate their analyses with decision-makers? a.       Ask the question b.      Master the data c.       Perform the analysis d.      Share the story 2.      (LO 1.5) Which of the following is considered discretionary information for a company’s accountants to provide? a.       The break-even level of a new product b.      The annual report submitted to shareholders detailing financial performance c.       The federal tax return d.      Sales information as part of the sales tax return 3.      (LO 1.1) Which of the following value chain activities is considered to be a primary activity? a.       Procurement b.      Inbound logistics c.       Human resources management d.      Information technology 4.      (LO 1.2) What requires context to create information? a.       Knowledge b.      Data c.       Facts d.      Data stores 5.      (LO 1.4) The analysis of variances (e.g., actual performance is different from budgeted performance) is most often associated with which type of analytics? a.       Descriptive analytics b.      Diagnostic analytics c.       Predictive analytics d.      Prescriptive analytics 6.      (LO 1.4) Summary statistics are most often associated with which type of analytics? a.       Descriptive analytics b.      Diagnostic analytics c.       Predictive analytics d.      Prescriptive analytics 7.      (LO 1.4) Time series analysis is most often associated with which type of analytics? a.       Descriptive analytics b.      Diagnostic analytics c.       Predictive analytics d.      Prescriptive analytics 8.       (LO 1.6) Which of the following is not one of the four overarching ethical principles mentioned in the 2017 IMA Statement of Ethical Professional Practice? a.       Competence b.      Honesty c.       Confidentiality d.      Credibility 9.      (LO 1.3) Which questions aim to more clearly understand why net income is decreasing when revenues are increasing? a.       What happened? What is happening? b.      Why did it happen? What are the root causes of past results? c.       Will it happen in the future? What is the probability something will happen? Is it forecastable? d.      What should we do based on what we expect will happen? How do we optimize our performance based on potential constraints? 10.  (LO 1.3) What type of visualization is used to track overtime labor on a continuous, real-time basis? a.       Dashboard with static display b.      Dashboard with dynamic display c.       Conditional formatting d.      Bar chart for the past 10 months 11.  (LO 1.3) Which management accounting question will require predictive analytics? a.       Why did labor expenses increase over the past year as compared to prior years? b.      Should the company rent or lease its headquarters office building? c.       Can we forecast future sales for this company? d.      Why did our cost structure (fixed and variable costs) change over the past year? 12.  (LO 1.3) Which management accounting question will require prescriptive analytics? a.       Why did the company perform worse this year than last year? b.      Should the company manufacture its product, or should it outsource the production of its products to an outside contractor? c.       Can we forecast future sales, earnings, and cash flows for this company? d.      What was the total revenue last quarter? 13.   (LO 1.2) A ________ is a person who analyzes accounting-related data to help an organization make effective business decisions. a.       management accountant b.      financial accountant c.       data scientist d.      computer programmer 14.  (LO 1.2) A ________ is a person employed to acquire, maintain, curate, access, manipulate, and statistically test data to address business questions. a.       management accountant b.      financial accountant c.       data scientist d.      computer programmer 15.  (LO 1.2) If a manager is a decision-maker, and a data scientist is a developer, then what best describes a management accountant? a.       An interpreter b.      An expert at investments c.       An intermediary d.      A broker 16.  (LO 1.5) Which of the following is mandatory information that a company’s accountants is required to maintain? a.       The cost drivers used to allocate overhead b.      The calculation of the difference between actual and budgeted performance c.       The product price that should be charged to maximize profits d.      The amount of dividends paid to shareholders 17.  (LO 1.5) Which entity sponsors the certification of management accountants as a CMA? a.       Institute of Management Accountants b.      Institute of Certified Public Accountants c.       American Institute of Management Accountants d.      Association of Certified Management Accountants 18.   (LO 1.5) Which of the following applies to management accounting? a.       There are required audits of management accounting information. b.      Management accounting works to minimize the cost of compliance with regulatory entities. c.       A source of management accounting data comes from a cost accounting system. d.      Common output is the income statement. 19.  (LO 1.3) Performing a regression falls into which of the following components of the AMPS model? a.       Ask the question b.      Master the data c.       Perform the analysis d.      Share the story 20.  (LO 1.3) Which data visualization is used to evaluate trends of values over time? a.       Bar Chart b.      Pie Chart c.       Scatterplot   d.      Line Graph

If supernormal profits are competed away under perfect competition, why will firms have an incentive to become more efficient?

Aishwarya’s husband passed away in 2016.She needs to determine whether Jasmine, her 17-year-old stepdaughter who is single, qualifies as her dependent in 2017.Jasmine is a resident but not a citizen of the United States.She lived in Aishwarya’s home from June 15 through December 31, 2017. Aishwarya provided more than half of Jasmine’s support for 2017.

There are 14 correct answers in the following multiple choice questions (some questions have multiple answers that are correct). To attain a perfect score on the quiz, all correct answers must be given. Each correct answer is worth 1 point. Each omitted answer or wrong answer reduces the score by 1 point, and each additional answer beyond the correct number of answers reduces the score by 1 point. Percentage on the quiz is based on the total number of correct answers. 36.1 Microsystem technology includes which of the following (three best answers): (a) LIGA technology, (b) microelectromechanical systems, (c) micromachines, (d) nanotechnology, (e) and precision engineering? 36.2 Which of the following are current applications of microsystem technology in modern automobiles (three best answers): (a) air-bag release sensors, (b) alcohol blood level sensors, (c) driver identification sensors for theft prevention, (d) oil pressure sensors, and (e) temperature sensors for cabin climate control? 36.3 The polymer used to make compact discs (CDs) and digital versatile discs (DVDs) is which one of the following: (a) amino resin, (b) epoxy resin, (c) polyamides, (d) polycarbonate, (e) polyethylene, or (f) polypropylene? 36.4 The most common work material used in microsystem technology is which one of the following: (a) boron, (b) gold, (c) nickel, (d) potassium hydroxide, or (e) silicon? 36.5 The aspect ratio in microsystem technology is best defined by which one of the following: (a) degree of anisotropy in etched features, (b) height-to-width ratio of the fabricated features, (c) height-to-width ratio of the MST device, (d) length-to-width ratio of the fabricated features, or (e) thickness-to-length ratio of the MST device? 36.6 Which of the following forms of radiation have wavelengths shorter than the wavelength of ultraviolet light used in photolithography (two correct answers): (a) electron beam radiation, (b) natural light, and (c) X-ray radiation? 36.7 Bulk micromachining refers to a relatively deep wet etching process into a single-crystal silicon substrate: (a) true or (b) false? 36.8 In the LIGA process, the letters LIGA stand for which one of the following: (a) let it go already, (b) little grinding apparatus, (c) lithographic applications, (d) lithography, electrodeposition, and plastic molding, or (e) lithography, grinding, and alteration? 36.9 Photofabrication is the same process as photolithography. (a) true or (b) false?

For each of the unrelated transactions described below, present the entry(ies) required to record each transaction. 1. Grand Corp. issued $20,000,000 par value 10% convertible bonds at 99. If the bonds had not been convertible, the company’s investment banker estimates they would have been sold at 95. Expenses of issuing the bonds were $70,000. 2. Hoosier Company issued $20,000,000 par value 10% bonds at 98. One detachable stock purchase warrant was issued with each $100 par value bond. At the time of issuance, the warrants were selling for $4. 3. Suppose Sepracor, Inc. called its convertible debt in 2014. Assume the following related to the transaction. The 11%, $10,000,000 par value bonds were converted into 1,000,000 shares of $1 par value common stock on July 1, 2014. On July 1, there was $55,000 of unamortized discount applicable to the bonds, and the company paid an additional $75,000 to the bondholders to induce conversion of all the bonds. The company records the conversion using the book value method.

Three savings and loan institutions (S&Ls) have identical balance sheet compositions: a high concentration of short-term deposits that are used to provide long-term, fixed-rate mortgages. The S&Ls took the following positions one year ago. Name of S&L            Position LaCrosse                    Sold financial futures Stevens Point              Purchased put options on interest rate futures Whitewater                 Did not take any position in futures Assume that interest rates declined consistently over the last year. Which of the three S&Ls would have achieved the best performance based on this information? Explain. (LO4, LO6)