The Warren Group’s pension expense is $67 million. This amount includes a$70 million service cost, a $50 million interest cost, a$55 million reduction for the expected return on plan assets, and a $2 million amortization of a prior service cost. How is the net pension liability affected when the pension expense is recorded?

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accounting

Deleon Inc. is preparing its annual budgets for the year ending December 31, 2017. Accounting assistants furnish the data shown below.

	Product JB 50	Product JB 60
Sales budget:
Anticipated volume in units	400,000	200,000
Unit selling price	$20	$25
Production budget:
Desired ending finished goods units	30,000	15,000
Beginning finished goods units	25,000	10,000
Direct materials budget:
Direct materials per unit (pounds)	2	3
Desired ending direct materials pounds	30,000	10,000
Beginning direct materials pounds	40,000	15,000
Cost per pound	$3	$4
Direct labor budget:
Direct labor time per unit	0.4	0.6
Direct labor rate per hour	$12	$12
Budgeted income statement:
Total unit cost	$13	$20

An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $560,000 for product JB 50 and$360,000 for product JB 60, and administrative expenses of $540,000 for product JB 50 and$340,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%.

Instructions Prepare the following budgets for the year. Show data for each product. Quarterly budgets should not be prepared. (d) Direct labor

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business

First introduced in Los Angeles, the concept of Korean-style tacos sold from a catering truck has been gaining popularity nationally (The New York Times, July 27, 2010). This taco is an interesting mix of corn tortillas with Korean-style beef, garnished with onion, cilantro, and a hash of chili-soy-dressed lettuce. Suppose one such taco truck operates in the Detroit area. The owners have estimated that the daily consumption of beef is normally distributed with a mean of 24 pounds and a standard deviation of 6 pounds. While purchasing too much beef results in wastage, purchasing too little can disappoint customers.

a. Determine the amount of beef the owners should buy so that it meets demand on $80 \%$ of the days.

b. How much should the owners buy if they want to meet demand on $95 \%$ of the days?

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accounting

During 2016, Dora Company completed the following transactions: Jan. 1. Traded in old office equipment with book value of $55,000 (cost of$124,000 and accumulated depreciation of $69,000) for new equipment. Dora also paid$100,000 in cash. Fair value of new equipment is $163,000. Assume the exchange had commercial substance. Apr. 1. Sold equipment that cost$54,000 (accumulated depreciation of $42,000 through December 31 of the preceding year). Dora received$6,300 cash from the sale of the equipment. Depreciation is computed on a straight-line basis. The equipment has a five-year useful life and a residual value of $0. Dec. 31, Recorded depreciation as follows: Office equipment is depreciated using the double-declining-balance method over four years with a$7,000 residual value. Record the transactions in the journal of Dora Company.

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