PPA602 WK4

Discussions
To participate in the following discussions, go to this week's Discussion link in the left navigation.

  1-  Restricted Funds  
     
    Do you think that a not-for-profit organization- board can release the restrictions on money in a strike fund and use it for general operations?  Does it matter whether we are talking about a strike fund held by a steel workers’ union to pay benefits to its members during a strike, versus a fund used by a not-for-profit as a safety reserve in case its workers go on strike?  Respond to at least two of your classmates’ postings.
     
    2-Transaction Analysis
     
    Analyze the following scenario: The Unified Path is an umbrella organization that solicits donations to support its many charitable suborganizations.  One of these is the Millbridge Family Service (MFS).  All transactions for MFS are handled through the MFS special purpose fund.  For both the United Path general operating fund and MFS special purpose fund, show the impact of the fundamental equation of accounting of each of the following events.
        Unified Path transfers cash to the MFS bank account for $50,000 for the MFS family counseling program.  This is a direct subsidy to MFS.  No repayment is required.
        Unified Path has a bookkeeping department which assists the suborganizations with their purchase of insurance, supplies, payroll, and other items.  This centralized approach is less expensive than if each part of the larger organization had its own bookkeeping staff. Unified
        Path charges MFS $400 for bookkeeping services for the month.  No payment is made at this time.
        MFS borrows $20,000 from Unified Path- general fund to meet a current operating shortfall.  MFS will repay this loan from money received from charges to its clients within six months. 

*************************************************
Assignment
To complete the following assignment, go to this week's Assignment link in the left navigation.

    FIFO and LIF0

    Analyze the following scenario: The Hospital for Ordinary Surgery uses pharmaceuticals for its patients.  It started the year on January 1, with an inventory of 1,000 doses of an antibiotic drug that cost $17 per dose.  On January 2, it purchased another 300 does for $21 each. From January 3 through June 30 it used 800 doses. On July 1, it bought 500 more doses at $23 each.  From July 2 through the end of the year it used 400 doses.  What is the inventory value at the end of the year, assuming FIFO?  What is the value assuming LIFO?  Clearly label the calculations of the inventory amounts using Excel.  Use formulas to calculate the FIFO and LIFO inventories and format the cells to insert a comma if there is more than three numbers and round to the nearest whole number.  

    Explain the advantages and disadvantages of FIFO and LIFO inventory methods and evaluate the best inventory method is best for this scenario.

    Submit to your instructor your two to three page Word document (not including the title and reference pages) and your Excel worksheet. Your paper should be formatted according to APA style as outlined in the approved APA style guide, and you must cite at least two scholarly sources in addition to the textbook.