Accounting Frauds Essay

1464 words - 6 pages

Accounting 860

Case 2: Wilkerson Co.

Group 6
Julia Boggs
Scott Drake
Chengyuan Wang
Yichun Wang

October 16, 2013

1. What is the competitive situation faced by Wilkerson?
Wilkerson has three products and they each faces different competitive situations.
a. The pump market is highly competitive and Wilkerson has to match current market prices to keep its current market share.
b. Wilkerson is a market leader in the valve industry and the market is mature and has only a few players.
c. Flow controller market is an emerging market and is in the growth stage with unsatisfied demand and price sensitivity seems low in this market.
d. The design for ...view middle of the document...

3. How does Wilkerson’s existing cost system operate? Develop a diagram to show how costs flow from factory expense accounts to products.

4. What would an activity-based costing (ABC) system for Wilkerson look like? Develop a diagram to show how costs would flow in such a system. Based on the information in the case, identify activities, assign costs to the activities, select activity cost drivers for each activity, and calculate the activity cost driver rates using both actual and capacity usage levels.

Table: Unit activity rates using actual usage level
|Overhead Activity |Activity Cost |Activity Cost Driver |Actual Total Activity |Unit Activity Rates |
| | | |Quantity | |
|Setup | $40,000 |Production runs |160 | $250 |
|Engineering | $100,000 |Hours of engineering work |1250 | $80 |
|Machine-related expenses | $336,000 |Machine hours |11200 | $30 |
|Setup | $40,000 |Production runs |180 | $222 |
|Engineering | $100,000 |Hours of engineering work |1250 | $80 |
|Machine-related expenses | $336,000 |Machine hours |12000 |
|Setup |0.30 |0.89 |5.56 |
|Receiving and production control |7.50 |7.50 |7.50 |
|Engineering |2.67 |2.40 |12.50 |
|Packaging and shipping |0.50 |2.10 |20.63 |
|Machine-related expenses |14.00 |14.00 |8.40 |
|Total overhead cost |24.96 |26.89 |54.58 |

Table: Analysis of...

Other assignments on Accounting Frauds

Platt's Case Essay

604 words - 3 pages the employees’ files and can make any changes. 7. Because the IT designed weak protection to the password, so someone else would easily get the password and make any change. D. What fraud audit procedures will be necessary to determine if fraud has occurred? Fraud Brainstorming Session. Journal Entry Testing. Accounting Estimates. Significant Unusual Transactions. Track all bank transactions and recording. Conclusion: Dana has high

Interview Questions Essay

1009 words - 5 pages investor? * Have you read/heard any news recently concerning accounting frauds? Both internationally and locally? * Describe a time when your manager asked you to do some task, which was an impossible mission. How did you handle it. * i should be hired cos i have great skills and potential which i can guarantee will be an asset to your company * leader - I talked about having organized a group for a school project. * What does a

The Earnings Management Issue Of Worldcom Case Study Report

2231 words - 9 pages ) concludes that earnings management generally involves some level of deceptions, and its accounting manipulations usually motivated by negative behaviours such as opportunistic maximization and avoiding debt covenant violations. Nevertheless, others argue it is unreasonable for managers to manage short-term earnings which will be adjusted in future, and it is a way of releasing blocked inside information (Healy and Wahlen, 1999) and so on. 3.2

Corporate Responsibilities Of Sarbanes-Oxley Act Of 2002

4874 words - 20 pages Patrick Chamberlain Dr. Wokukwu Intermediate Accounting October 13, 2011 Corporate Responsibility of Sarbanes Oxley Act of 2002 To first understand the corporate responsibilities of the Sarbanes Oxley Act of 2002, otherwise referred to as SOX; you first need to understand that the Act was created for. The SOX came into effect in July 2002 and it was introduced for major changes to the regulation of corporate governance and

The Fall Of Enron

4627 words - 19 pages The Fall of Enron Abstract This research paper talks about the Enron case – how it rose to the level of one of the top companies in the world and then fell from grace so that it eventually had to file for bankruptcy. The paper will discuss the financial and accounting manipulations that Enron resorted to and the analysts approach towards its stock prices and will discuss its eventual fate. The study will revolve around how Enron shed its

Business Law

9821 words - 40 pages require a writing If the contract itself prohibits any changes to the contract unless they are in signed writing, only those changes agreed to in a signed writing are enforceable Also, any modification that brings a sales contract under statute of frauds must usually be in writing to be enforceable. Statute of Frauds Sales contracts for goods priced at $500 or more must be in writing. Lease contracts requiring total payments of $1000 or more

Chanhging Technology In Changing Banking Operations

4539 words - 19 pages costs involved largely accounting for the delay in adoption. Multilingual ATMs Installation of multilingual ATMs has also entered pilot implementation stage for many large banks in the country. This technological innovation is also aimed at the rural banking business believed to have large untapped potential. The language diversity of India has proved to be a major impediment to the active adoption of new technology, restrained by the lack of

Contract Law

5420 words - 22 pages | 2013 | | | Assignment Cover Sheet Qualification | Unit Number and Title | Pearson BTEC Level 5 HND Diploma Business (Accounting) | Unit 5: Aspects of Contract and Negligence for BusinessUnit Code: Y/601/0563Credit Value: 15 Credits | Student Name | Assessor Name | Mukaram Khan Swati | Salman Haider | Date Issued | Completion Date | Submitted On | Validity | 7th October,2013 | 4th November,2013 | | 1st Oct, 2013-31st Jan,2013

Mgt216

714 words - 3 pages The first ethical issue presented in the ethics game simulation was whether to warn consumers about the contaminated product and what information to provide consumers about the contaminant. The second ethical issue was whether to sell a product that does not meet U.S. safety requirements in a foreign market that has lower safety restrictions. G-BioSport was not required to meet prior approval from the Federal Drug Administration before they

Economy Effect Of Marijuana

277 words - 2 pages Modern American History by Alan Renga 2nd Mid Term! You will be given 3 Short Essay questions and 20 Multiple Choice questions deriving from this list! 80 points total! The 1920s Warren Harding then Calvin Coolidge Tea Pot Dome 1st Red Scare Immigration Restriction, Sacco and Vanzetti Langston Hughes, Marcus Garvey, KKK Prosperity, advertising Prohibition, Al Capone Flappers, Clara Bow, Rudolph Valentino Babe Ruth, Jack Dempsey

The Vc Shakeout

2033 words - 9 pages professionals per firm. I think a 50% to generate gross investment multiples of decrease in industry size is a fair estimate.” risk-taking investors. “When we enter an investment, we don’t 3 (or 2.5 after accounting for management The only truly safe firms are the small expenses). He estimates that the industry number of top-tier firms in the VC industry. think about how to sell it,” says Bernard They will continue to set the terms for in- Liautaud, a

Similar Documents

Quickbooks Essay

1655 words - 7 pages extortion and expanded enlistment in the accounting department to adapt up to the test. Effective management of the accounting processes of BoliEve Inc. will be articulated by establishing an accounting system that uses QuickBooks, which is adequately outlined in this proposal of BoliEve project - QuickBooks in Action. Adopting the proposal will ensure the accounting process is adequately checked for instances of errors and frauds and also a

Accounting Fraud Essay

615 words - 3 pages must encouraged by all regardless of their positions. Successes in the business organization come after the elimination of frauds. Reference Singleton, T. W., & Singleton, A. J. (2010). Fraud auditing and forensic accounting (Vol. 11). John Wiley & Sons. Ramaswamy, V. (2005). Corporate governance and the forensic accountant. The CPA Journal, 75(3), 68.

Accounting Scandal Of Worldcom Essay

951 words - 4 pages had seen several cases of famous, or infamous, financial and accounting frauds, including Enron, Tyco, Aldelphia, Global Crossing and HealthSouth. Such cases, we can say, were quite complicated to trace, but WorldCom used a simple recipe to cook the book, which will be illustrated below. HOW DID WORLDCOM COOK ITS BOOKS? To understand the fraud occurring at WorldCom, we should basically understand the difference between operating and capital

Forensic Accounting Essay

1320 words - 6 pages Forensic Accounting Name Institutional Affiliation Fraud committed on behalf of an organization vs. fraud committed against an organization Fraud commuted on behalf of the organization entails a section of the organization’s employees especially the senior management engaging in activities that are meant to benefit the company but in reality cause serious issue to the larger society the group is supposed to serve. An example of these