Question 1
Wenowhen Life Insurance Company insured Max Fung?s life for $600,000. Max?s recently deceased wife, Freida, was the designated beneficiary entitled to receive $600,000 at Max?s death. Under the terms of this life insurance policy Max Fung is entitled to terminate the policy and receive a calculated ?cash surrender value? or a series for payments either for a ten year period. The death benefit aspect of this policy was designed to provide financial assistance to Freida should she survive Max. Since this protection of Freida will not be necessary, Max has decided to terminate or sell this policy November 1. Max?s insurance agent has provided the following information: Cash surrender value (payable November 1) $400,000 Monthly payment if payments received over ten years $ 5,000 Premiums paid to Wenowhen Life Insurance Company $ 180,000 The installment payments will begin November 1, 2011. Max has inquired about possibly selling the policy receiving a quoted price of $475,000. MAX HAS ASKED YOU TO HELP HIM CONSIDER THE AFTER TAX CONSEQUENCES OF HIS OPTIONS REGARDING THE TWO INSURANCE POLICIES. YOU SHOULD PREPARE THE FOLLOWING: A TECHNICAL MEMORANDUM DESCRIBING THE 2011 TAX CONSEQUENCES OF THE THREE OPTIONS AVAILABLE RELATED TO THE WENOWHEN LIFE INSURANCE COMPANY POLICY. PLEASE CITE THE TAX CODES!,THE APPROPRIATE TAX CODES FOR THE RESEARCH QUESTION ARE IN THE ATTACHMENT.,ALSO I FORGOT TO MENTION THAT MAX FUNG'S WIFE FRIEDA HAD DIED,Hello I appreciate your help, is it possible you can have this answered by Sunday Night? Or at mid-night? Because I will be needing some time to review it before the assignment is due on 11/7/11 at 9:30am. Once again, thank you so much for your help!
Question 2
11.3 A spare parts supplier is thinking of building a car from the parts he has in his yard. He does not expect any reward for his labour but wants to know what costs he should include for the materials. He has provided the following information: ? A chassis was bought for ?100 and has no scrap value. ? A reconditioned engine will cost ?375. However, an old engine was bought for ?50. It can either be sold in its present condition for ?225 or additional parts costing ?250 could be bought to bring to bring the engine to an equivalent standard to the reconditioned one. ? Tyres costing ?180 need to be purchased. ? Paint is in stock at a cost of ?60 but it will need to be replaced at its current price of ?70. this is from the instructor: Cost of materials to build a car based on given information. Hint on the first bullet - "chassis bought for 100" is this relevant? You are given bullet points of information/materials note (tyres is tires). The solution would be to identify the relevant material cost from the bullet points. For example: is the chassis a relevant cost to be counted? What does the text offer about sunk costs (this is important), cost with no future cash flow and items that have no scrap value (all of these are important). Is this type of material relevant when you are trying to identify relevant costs? This is a simple cost identification problem. Approach - read the cost information - refer to the text to determine if the type of cost is relevant. Prepare a description column and a cost column - total the cost column and you have relevant costs. HINT: which cost is relevant current cost or replacement cost?
Question 3
United Co. has the following account balances: Cash $60,000, Accounts Receivable: $25,000, Allowances of Uncollectible Accounts $4,500, Inventory: $15,000, consisting 500 units at $30 per unit. All accounts are in normal balance. The company has a credit term of 1/10, N/30, FOB: shipping point to their customers, at 2/10, N/30 FOB: shipping point to their vendors. It also has the policy of selling 1 1/2 times of their merchandise costs, and use FIFO for inventory flow. It is under perpetual inventory system. Please make journal entries for the following transactions and post them to the general ledger: (When calculating unit costs, ignore freight-in costs. For all returns, use FIFO also, unless specified.) (It maybe helpful to set up subsidiary ledgers.) For customers returns, please use each total sales/total units. For example: if the sale was $200,000 for 25,000 units, then it is $200,000/25,000=$8/unit. June 1 Purchased 2,000 units@$32 from Black Co. on account. June 2 Paid $500 for June 1 shipment June 5 Returned 250 units of June 1 shipment. June 8 Sold 600 units to Brown Co. on account June 9 Paid Black Co. June 10 Brown Co. returned 25 unitsof merchandise. June 11 Purchased 800 units @$34 from Black Co. on account. June 12 Paid $250 freight costs for June 11 shipment. June 14 Sold 900 units to Green Co. on account. June 15 One of the original customers, Grey Co. filed for bankruptcy. United wrote off their balance of $2,000. June 16 Returned 100 units to Black from June 11 shipment. June 18 Received payment from Brown Co. June 18 Received 50 units returned merchandise from Green Co. June 19 Purchased 1,000 units @$35 from Black co. on account. June 19 Paid freight of $500 for June 19 shipment. June 20 Paid Black Co. for June 11 shipment. June 21 Another original customer White Co. disappeared. United wrote off their balances of $3,000. June 23 Sold 600 units to Blue Co. June 24 Received payment from Greene Co. June 30 Put 6% of net sales into Allowance account. Make Journal Entries for the above transactions and post the to 4-column ledger accounts. After posting, prepare partial income Statement through Gross Profit, and show Net Realizable Accounts Receivable.
Question 4
Depreciation on factory plant and equipment is an example of factory overhead cost. A. True B. False Cost of oil used to lubricate factory machinery and equipment is an example of a direct materials cost. A. True B. False If factory overhead applied exceeds the actual costs, the factory overhead account will have a credit balance. A. True B. False For which of the following businesses would the job order cost system be appropriate? a. Meat processor b. Automobile manufacturer c. Oil refinery d. Construction contractor For which of the following businesses would the process cost system be appropriate? a. Book retailer b. Dress designer c. Lumber mill d. Printing firm At the end of the year, overhead applied was $35,000,000. Actual overhead was $34,200,000. Closing over/under applied overhead into cost of goods sold would cause net income to increase/decrease by? a. Increase by $800,000 b. Decrease by $800,000 c. Not effect net income. d. Decrease net income by $200,000 The recording of the factory labor incurred for general factory use would include a debit to: a. Factory Overhead b. Wages Payable c. Wages Expense d. Cost of Goods Sold The recording of the application of factory overhead costs to jobs would include a credit to: a. Factory Overhead b. Wages Payable c. Work in Process d. Cost of Goods Sold MATCHING (8 POINTS) The following are some of the costs incurred by Cupcake Company. Identify them as either: Write the letter in the space provided a. Direct Materials b. Direct Labor c. Factory Overhead d. Period Costs _____ 1. Salesman commissions _____ 2. Factory Rent _____ 3. Depreciation expense - factory _____ 4. Frosting _____ 5. Baker?s wages _____ 6. Depreciation expense - office _____ 7. Cupcake mix _____ 8. Sprinkles for decoration,i need the answers no later then 145pm est today.,how do i get my money back? I needed the answers by 145 pm today EST.
Question 5
Your analysis should include thoughtful consideration of the MBA programme threads. You will find information and outcomes from the event in the following articles: ? Ezigbo, O. & Bassey, O. (2010) ?Oil spill?environment practitioners want compensation from shell? [Online]. Available from: http://allafrica.com/stories/201006300315.html (Accessed: 1 July 2010). In addition, be sure to incorporate ideas from the following article in your project: ? Donaldson, T. & Preston, L. (1995) ?The stakeholder theory of the corporation: concepts, evidence, and implications?, The Academy of Management Review, 20 (1), pp.65?91. In this article, the author discusses the concept of organizational stakeholders and the implications for management. Your Final Project analysis should address the following: ? Conduct research and provide a brief organisational and historical background on Shell as it relates to its operations, the extent of its globalisation, and its reputation for ethics and corporate social responsibility. ? Identify and discuss how each of the three stakeholders in this wicked problem might make sense of it in different ways. For example, an investor may see the cleanup effort as something that might impact their dividends and returns. However, that same person may also see the cleanup effort as an important fight to minimise harmful impacts on the environment. ? Discuss ways of constructing an understanding of this event that may be productive for the different stakeholders. Identify outcomes that would be reinforced or in conflict with this sense-making. ? In the context of leadership research and established leadership theories, discuss how each of the three stakeholders can have a personal impact on how the situation or problem might be addressed. Identify a way to create a shared understanding of the wicked problem. Submit approximately 2,000 words in which you: ? Identify the key issues in the situation ? Conduct research and provide organisational and historical background on Shell as it relates to its operations, the extent of its globalisation, and its reputation for ethics and corporate social responsibility. ? Research related literature on being a leader, e.g., leadership and sense-making, transactional leadership, transformational leadership, charismatic leadership and theories on gender and leadership ? Summarise and demonstrate understanding of related literature ? Assess the situation from three primary stakeholder perspectives: o The Shell CEO o A local Nigerian Shell employee o A Shell Investor ? Identify and discuss the various motivations of each of the three stakeholders in this situation. For example, an investor may be motivated by dividends and returns, but also may have personal concern for the environment. Submit approximately 4,000 words in which you address the following: ? Synthesise theories and models from the Module readings and literature (that address the issue in the situation). ? Utilise effective discussion, analysis and conclusions showing critical thinking to propose solutions and address the following questions: o Discuss how each of the three stakeholders might make sense of how the situation or problem should be addressed. How would your response or articulation of the problem vary for each of these stakeholders? o Describe, compare and contrast, and evaluate the various approaches to leadership discussed throughout the Module, as well as what you have learned about yourself to being a leader in this particular situation. Provide alternative directions for bringing resolution based on several different perspectives. ? Provide correct referencing and citation. In each submission, be sure to cite and reference examples from the Module textbook and journal articles presented in this Module as well as resources you identify from your own research. Your submissions should demonstrate critical analysis of the topic and a coherent application of related theories.
