The Thode Company established a wholly-owned subsidiary in Saudi Arabia on January 1, 2019, when the exchange rate was $0.30/riyal (SAR). Of Thode’s initial SAR200,000,000 investment, SAR100,000,000 was used to acquire plant assets (tenyear life) and SAR50,000,000 was used to acquire inventory. The remaining amount was initially held as cash by the subsidiary. During 2019, the subsidiary reported net income of SAR20,000,000. Inventory purchases of SAR15,000,000 were made evenly during the year. It paid dividends of SAR10,000,000 on September 30, when the exchange rate was $0.255/SAR. No other transactions occurred between the subsidiary and the parent. The subsidiary’s condensed income statement appears below: Sales SAR85,000,000 Cost of goods sold (1) (40,000,000) Depreciation expense (2) (10,000,000) Other cash expenses (15,000,000) Net income SAR20,000,000 (1) Assume a FIFO inventory flow assumption. (2) Relates solely to plant assets acquired on January 1, 2019. The average rate during the year was $0.265/SAR. On the balance sheet date, it was $0.25/SAR. (a) Assuming the functional currency is the riyal, translate the subsidiary’s preclosing trial balance at December 31, 2019, and prepare a schedule calculating the subsidiary’s translation gain or loss for 2019. Use negative signs with your Cr (credit balance) answers, in the P Dr(Cr) and $ Dr(Cr) columns only. Enter answers using all zeros (do not abbreviate answers to millions or thousands).

Suppose the number of equipment sales and service contracts that a store sold during the last six (6) months for treadmills and exercise bikes was as follows: treadmill exercise bike total sold 185 123 service contracts 67 55 the store can only sell a service contract on a new piece of equipment. of the 185 treadmills sold, 67 included a service contract and 118 did not.

Zachary company produces commercial gardening equipment. since production is highly automated, the company allocates its overhead costs to product lines using activity-based costing. the costs and cost drivers associated with the four overhead activity cost pools follow: activities unit level batch level product level facility level cost $ 64,800 $ 27,730 $ 15,000 $ 154,000 cost driver 2,400 labor hrs. 47 setups percentage of use 11,000 units production of 780 sets of cutting shears, one of the company’s 20 products, took 240 labor hours and 7 setups and consumed 15 percent of the product-sustaining activities. required: (a) had the company used labor hours as a company wide allocation base, how much overhead would it have allocated to the cutting shears? (b) how much overhead is allocated to the cutting shears using activity-based costing? (c) compute the overhead cost per unit for cutting shears first using activity-based costing and then using direct labor hours for allocation if 780 units are produced. if direct product costs are $150 and the product is priced at 30 percent above cost for what price would the product sell under each allocation system? (d) assuming that activity-based costing provides a more accurate estimate of cost, indicate whether the cutting shears would be over- or underpriced if direct labor hours are used as an allocation base. explain how over-or undercosting can affect vaulker's profitability. (e) comment on the validity of using the allocated facility-level cost in the pricing decision. should other costs be considered in a cost- plus pricing decision? if so, which ones? what costs would you include if you were trying to decide whether to accept a special order?

In terms of precent, beer has more alcohol than whiskey true or false