Hardy Inc. intends to invest in one of two competing types of computer aided manufacturing equipment: CAM X and CAM Y. Both CAM X and CAM Y models have a project life of 10 years. The purchase price of the CAM X model is $3,000,000, and it has a net annual after tax cash inflow of $750,000. The CAM Y model is more expensive, selling for $3,500,000, but it wil produce a net annual after tax cash inflow of $875,000. The cost of capital for the company is 10 percent.

1. Calculate the NPV for each project. Round present value calculations and your final answers to the nearest dollar.

CAM X:	$
CAM Y:	$

Which model would you recommend?
Select CAM X CAM Y both neither Item 3

2. Calculate the IRR for each project.

CAM X:	Select 10% to 20% 20% to 25% 25% to 30% Item 4
CAM Y:	Select 10% to 20% 20% to 25% 25% to 30% Item 5

Which model would you recommend?
Select CAM X CAM Y both neither Item 6

Use theExhibit 14B 1 andExhibit 14B 2 to locate the present value of an annuity of $1, which is the amount to be multiplied times the future annual cash flow amount.

Each of the following scenarios is independent. Assume that all cash flows are after tax cash flows.

Southward Manufacturing is considering the purchase of a new welding system. The cash benefits will be $400,000 per year. The system costs $2,250,000 and will last 10 years.
Kaylin Day is interested in investing in a women%u2019s specialty shop. The cost of the investment is $180,000. She estimates that the return from owning her own shop will be $35,000 per year. She estimates that the shop will have a useful life of six years.
Goates Company calculated the NPV of a project and found it to be $21,300. The project’s life was estimated to be eight years. The required rate of return used for the NPV calculation was 10 percent. The project was expected to produce annual after tax cash flows of $45,000.

1. Compute the NPV for Southward Manufacturing, assuming a discount rate of 12 percent. Round to the nearest dollar.
$

Should the company buy the new welding system?
Select Yes No Item 2

2. Conceptual Connection: Assuming a required rate of return of 8 percent, calculate the NPV for Kaylin Day’s investment. Round to the nearest dollar.
$

Should she invest?
Select Yes No Item 4

Calculate the NPV assuming the estimated return was $45,000 per year. Round to the nearest dollar.
$

Would this affect the decision? What does this tell you about your analysis?
The input in the box below will not be graded, but may be reviewed and considered by your instructor.

3. What was the required investment for Goates Company%u2019s project? Round to the nearest dollar.
$

CHECKMARKS ARE CORRECT ANSWERS JUST NEED HELP WITH BLANK BOXES

what is the net income help 451083

Aug 29, 2021 | Uncategorized

Nixon Corporation was started on January 1, 2012. The company entered into the following transactions during the year (Assume all transactions involve cash):

1) Acquired $2,300 of capital from the owners.
2) Purchased $430 of direct raw materials.
3) Used $330 of these direct raw materials in the production process.
4) Paid production workers $530 cash.
5) Paid $330 for manufacturing overhead (applied and actual overhead are the same).
6) Started and completed 250 units of inventory.
7) Sold 180 units at a price of $6 each.
8) Paid $170 for selling and administrative expenses.

The amount of net income for 2012 was:

	$43.20.
	$68.20.
	$53.20.
	$223.20.

accounting 451093

Aug 29, 2021 | Uncategorized

On October 30, Seba Salon, Inc. issued a 90 day note with a face amount of $60,764 to Reyes Products, Inc. for merchandise inventory. Determine the proceeds of the note assuming the note is discounted at 7%.

Select the correct answer.

$59,701

$65,017

$56,511

$61,827

cost allocation 451103

Aug 29, 2021 | Uncategorized

ore Manufacturing makes a single product. Budget information regarding the current period is given below:

Revenue (100,000 units at $8.00) $800,000

Direct materials $170,000

Direct labor 125,000

Variable manufacturing overhead 235,000

Fixed manufacturing overhead 110,000 640,000

Total $160,000

Deer Company approaches Core with a special order for 15,000 units at a price of $8.50 per unit. Variable costs will be the same as the current production and accepting the special order will not have any impact on the rest of the company%u2019s orders. However, Core is operating at capacity and will incur an additional $55,000 in fixed manufacturing overhead if the order is accepted. What is the incremental revenue associated with accepting the special order?

$127,500

$927,500

($7,000)

$47,500

Please show work. Thanks!

organizations use a variety of performance measures to evaluate managers 451107

Aug 29, 2021 | Uncategorized

Organizations use a variety of performance measures to evaluate managers. Central to the idea ofresponsibility accounting is that performance measures are reflective of activities under a manager’s influence and control. Organizations often identify different levels of responsibility and refer to these levels as segments.

The following performance measures and reports are used to evaluate managers of various segments:

Required:

For each performance measure and report listed below, indicate which segment (cost center, revenue center, profit center, investment center) they would most likely be used to evaluate.

a. Return on investment	Select Cost Center Investment Center Profit Center Revenue Center Item 1
b. Cost budgets	Select Cost Center Investment Center Profit Center Revenue Center Item 2
c. Labor usage variance	Select Cost Center Investment Center Profit Center Revenue Center Item 3
d. Sales budget	Select Cost Center Investment Center Profit Center Revenue Center Item 4
e. Segment margin	Select Cost Center Investment Center Profit Center Revenue Center Item 5
f. Sales volume variance	Select Cost Center Investment Center Profit Center Revenue Center Item 6
g. Residual income	Select Cost Center Investment Center Profit Center Revenue Center Item 7
h. Overall flexible budget variance	Select Cost Center Investment Center Profit Center Revenue Center Item 8
i. Sales price variance

cornerstones of managerial accounting 4th edition 451109

Aug 29, 2021 | Uncategorized

Overhead Variances

You may use the attached spreadsheet to help you complete this activity, but you are not required to do so. You will find the spreadsheet by clicking on the link in the drop down menu above.

At the beginning of the year, Gaillard Company had the following standard cost sheet for one of its chemical products:

Gaillard computes its overhead rates using practical volume, which is 144,000 units. The actual results for the year are as follows:

Units produced: 143,400
Direct labor: 286,400 hours at $18.10
FOH: $1,235,900
VOH: $259,300

1. Compute the variable overhead spending and efficiency variances.

Spending variance
Efficiency variance

2. Compute the fixed overhead spending and volume variances.

Spending variances
Volume variances

hurren corporation makes a product with the following standard costs 450773

Aug 29, 2021 | Uncategorized

Hurren Corporation makes a product with the following standard costs:

Inputs	Standard Quantity or Hours	Standard Price or Rate	Standard Cost Per Unit
Direct materials	4.9 grams	$4.00 per gram	$19.60
Direct labor	1.2 hours	$14.00 per hour	$16.80
Variable overhead	1.2 hours	$9.00 per hour	10.80

The company reported the following results concerning this product in June.

Originally budgeted output	6,300	units
Actual output	6,200	units
Raw materials used in production	28,430	grams
Actual direct labor hours	5,000	hours
Purchases of raw materials	32,300	grams
Actual price of raw materials purchased	$4.10	per gram
Actual direct labor rate	$14.90	per hour
Actual variable overhead rate	$8.70	per hour

The company applies variable overhead on the basis of direct labor hours. The direct materials price variance is computed when the materials are purchased.

The materials price variance for June is: (Round your intermediate calculations to 2 decimal places.)

	$3,230 F
	$3,230 U
	$2,860 F
	$2,860 U

accounting help been stuck for hours 450777

Aug 29, 2021 | Uncategorized

I do have some answers on these problems, but I’m not sure if they are correct and alot I do not have, I would appreciate some help as I am getting really exhausted in trying to figure this out. Thanks in advance!

Near the end of 2011, the management of Simid Sports Co., a merchandising company, prepared the following estimated balance sheet for December 31, 2011.

SIMID SPORTS COMPANY Estimated Balance Sheet December 31, 2011

Assets Cash 35,500 Accounts receivable 520,000 Inventory 150,000

Total Current Assets 705,500 Equipment 537,000 Less accumulated Deprecation 67,125 469,875 Total Assets 1,175,375

Liabilities and Equity Accounts Payable 355,000 Bank Loan Payable 16,000 Taxes Payable (due 3/15/2012) 90,000

Total Liabilities 461,000 Common Stock 475,000 Retained earnings 239,375

Total Stockholders’ equity 714,375

Total Liabilities and Equity 1,175,375

To prepare a master budget for January, February, and March of 2012, management gathers the following information.

a.	Simid Sports%u2019 single product is purchased for $30 per unit and resold for $53 per unit. The expected inventory level of 5,000 units on December 31, 2011, is more than management%u2019s desired level for 2012, which is 20% of the next month%u2019s expected sales (in units). Expected sales are: January, 7,500 units; February, 8,500 units; March, 11,000 units; and April, 9,000 units.
b.	Cash sales and credit sales represent 20% and 80%, respectively, of total sales. Of the credit sales, 61% is collected in the first month after the month of sale and 39% in the second month after the month of sale. For the December 31, 2011, accounts receivable balance, $125,000 is collected in January and the remaining $395,000 is collected in February.
c.	Merchandise purchases are paid for as follows: 20% in the first month after the month of purchase and 80% in the second month after the month of purchase. For the December 31, 2011, accounts payable balance, $75,000 is paid in January and the remaining $280,000 is paid in February.
d.	Sales commissions equal to 20% of sales are paid each month. Sales salaries (excluding commissions) are $90,000 per year.
e.	General and administrative salaries are $156,000 per year. Maintenance expense equals $2,000 per month and is paid in cash.
f.	Equipment reported in the December 31, 2011, balance sheet was purchased in January 2011. It is being depreciated over eight years under the straight line method with no salvage value. The following amounts for new equipment purchases are planned in the coming quarter: January, $34,000; February, $96,000; and March, $30,000. This equipment will be depreciated under the straight line method over eight years with no salvage value. A full month%u2019s depreciation is taken for the month in which equipment is purchased.
g.	The company plans to acquire land at the end of March at a cost of $140,000, which will be paid with cash on the last day of the month.
h.	Simid Sports has a working arrangement with its bank to obtain additional loans as needed. The interest rate is 12% per year, and interest is paid at each month end based on the beginning balance. Partial or full payments on these loans can be made on the last day of the month. The company has agreed to maintain a minimum ending cash balance of $12,840 in each month.
i.	The income tax rate for the company is 39%. Income taxes on the first quarter%u2019s income will not be paid until April 15. Cash budget January, February, and March 2012 January February March Beginning cash balance cash receipts from customers Total cash available cash disbursements payments for merchandise sales commissions sales salaries general & administrative salaries Maintenance expense interest taxes payable purchase of equipment purchase of land Total cash disbursements Preliminary Cash balance Repayment of loan to bank Ending cash balance Loan balance, end of month Budgeted Income Statement For Three Months Ended March 31, 2012 Sales Cost of Goods sold Gross profit Operating expenses Sales commissions Sales Salaries General Administrative Salaries Maintenance Expense Depreciation Expense Interest expense Income before taxes Income taxes Net Income Budgeted balance sheet Assets Cash Accounts Receivable Inventory Total Current Assets Land Equipment Less: Accumulated Depreciation Total Assets Liabilities and Equity Accounts Payable Bank Loan Payable Taxes Payable Total Liabilities Common Stock Retained Earnings Total Stockholder’s Equity Total Liabilities & Equity

auditing 450778

Aug 29, 2021 | Uncategorized

I am asking this question again as the first answer was a little garbled please help!

At the Main Street Theater, the cashier, located in a box office at the entrance, receives cash from customers and operates a machine that ejects serially numbered tickets. To gain admission to the theater, a customer hands the ticket to a door attendant stationed some 50 feet from the box office at the entrance to the theater lobby. The attendant tears the ticket in half, opens the door for the customer, and returns the stub to the customer. The other half of the ticket is dropped by the door attendant into a locked box.

What controls are present in this phase of handling cash receipts?
What steps should be taken regularly by the manager or other supervisor to give maximum effectiveness to these controls?
Assume that the cashier and the door attendant decide to collaborate in an effort to steal cash receipts. What action might they take?
Continuing the assumption made in above of collusion between the cashier and the door attendant, what features of the controls would be likely to disclose he embezzlement?

please help budget questions 450788

Aug 29, 2021 | Uncategorized

Could I get some help with the selling and administrative expenses budget and budgeted income statement for this question. I believe I have completed most of it, but have a few issues at the end.

Budgeted Income Statement and Supporting Budgets

The budget director of Feathered Friends Inc., with the assistance of the controller, treasurer, production manager, and sales manager, has gathered the following data for use in developing the budgeted income statement for October 2012:

Estimated sales for October:

Estimated inventories at October 1:

Desired inventories at October 31:

Direct materials used in production:

Anticipated cost of purchases and beginning and ending inventory of direct materials:

Direct labor requirements:

Estimated factory overhead costs for October:

Estimated operating expenses for October:

Estimated other income and expense for October:

Estimated tax rate: 30%

7. Prepare a selling and administrative expenses budget for October. Enter all amounts as positive numbers.

FEATHERED FRIENDS INC. Selling and Administrative Expenses Budget For the Month Ending October 31, 2012
Selling expenses:
	Sales salaries expense
	Advertising expense
	Telephone expense selling
	Travel expense selling
	Total selling expenses
Administrative expenses:
	Office salaries expense
	Depreciation expense office equipment
	Telephone expense%u2014administrative
	Office supplies expense
	Miscellaneous administrative expense
	Total administrative expenses
Total operating expenses

8. Prepare a budgeted income statement for October. Enter all amounts as positive numbers.

FEATHERED FRIENDS INC. Budgeted Income Statement For the Month Ending October 31, 2012
_________________			_________________
_________________			_________________
_________________			_________________
Operating expenses:
	_________________	_________________
	_________________	_________________
	Total operating expenses		_________________
_________________			_________________
Other income:
	_________________	_________________
Other expenses:
	_________________	_________________	_________________
_________________			_________________
_________________			_________________
_________________			_________________

farmer company s indirect method statment of cash flows 450802

Aug 29, 2021 | Uncategorized

I need someone to put this in to a actuall statement of cash flows using the indirect method please. When it is written in paragraph form I do not grasp it.

FARMER COMPANY Comparative Balance Sheets
		December 31,	December 31,
ASSETS		2011	2010
Cash		$ 14,000	$ 9,000
Accounts receivable		52,000	24,000
Inventory		87,000	40,000
Equipment		125,000	100,000
Accumulated depreciation		(42,000)	(34,000)
Prepaid expenses		4,000	2,000
Land		0	7,000
Building		50,000	0
	Total Assets	$290,000	$148,000

LIABILITIES AND STOCKHOLDERS’ EQUITY

Accounts payable		$ 25,000	$ 14,000
Interest payable		8,000	6,000
Taxes payable		37,000	11,000
Note payable		37,000	32,000
Bonds payable		75,000	50,000
Common stock, $10 par		75,000	25,000
Retained earnings		33,000	10,000
	Total Liabilities and Stockholders’ Equity	$290,000	$148,000

Additional 2011 information:
	Net income, $31,000
	Sold land for gain of $3,000
	Paid dividends of $8,000
	Issued $50,000 stock to purchase building

Required:

Using the indirect method, prepare a statement of cash flows for 2011 for Farmer Company using the form below.

Just make a statement of cash flows please, you do not need to use a specific form. I just cannot understand the answer that was in paragraph form.

net present value 450825

Aug 29, 2021 | Uncategorized

(Ignore income taxes in this problem.) A newly developed device is being considered by Fairway Foods for use in processing and canning peaches. The device, which is available only on a royalty basis, is reported to be a great labor saver. Fairway’s production manager has gathered the following data:

			Present Labor		Proposed Royalty
			Method		Method
Per year
Labor cost		$	55,000	$	7,000
Royalty cost				$	24,000
Initial start up costs associated with the new device				$	200,000


The new device must be ontained through a licensing arrangement with the developer. The license period
lasts for only 8 years. Fairway Food’s require rate of return is 10%.

Required:
a. By use of the incremental cost approach, compute the net present value of the proposed licensing of
the new device. (negative amount should be indicated by a minus sign. Round “PV factor” to 3
decimal places. Round your other intermedate calculations and final answers to the nearest
whole dollar. ) (use exhibit 11b 2)

Net present value	$

how many pairs of stockings must be sod to break even what does this represent it io 450831

Aug 29, 2021 | Uncategorized

Required: 1. How many pairs of stockings must be sod to break even? What does this represent it Iota dollar sales? (Round “per unit” values to 2 decimal places and final answers to the nearest whole number. Do not round other intermediate calculations. Omit the “S” sign in your response.)

Break even point in unit sales Break even point in dollar sales

1 pairs

3. How many pairs of stockings must be sod to earn a S8.000 target profit for the first year? (Round the cost per unit to 2 decimal places and final answer to the nearest whole number. Do not round other intermediate calculations.)

Unit sales to attain target profit pairs

4. Ms. Hall now has one full time and one part time salesperson working in the store. It will cost her an additional 513.200 per year to convert the part time position to a full time position. Ms. Hal believes that the change would bring in an additional S29.000 in sales each year. Should she convert the position? Use the incremental approach.

No Yes

Attachments:

Accounting pr….docx

rate of return on investment 450836

Aug 29, 2021 | Uncategorized

The income from operations and the amount of invested assets in each division of Steele Industries are as follows:

INCOME FROM OPERATIONS INVESTED ASSESTS

Retail Division $90,000 $500,000

Commercial division $49,000 350,000

Internet Division 85,000 425,000

a. Compute the rate of return on investment for each division. (Round to the nearest whole number.)

Division	Percent
Retail Division:	%
Commercial Division:	%
Internet Division:	%

interfund transfers 450863

Aug 29, 2021 | Uncategorized

Interfund transactions:

Interfund transactions are reciprocal or nonreciprocal. Prepare journal entries to record the following interfund transactions:

A. The General fund loans the Capital Projects fund $200,000 to hire an architect to start planning a building.

B. The Enterprise fund bills the General fund $30,000 for electrical power provided.

C. The General fund pays the Enterprise fund power bill of $30,000

D. The General fund perminately transfers $200,000 in capital to an Enterprise fund to help with start up expenses.

E. The General fund transfers $25,000 to the Debt Service fund to pay principal and interest on long term debt.

Putting it all together

Prepare journal entries to record the following transactions for a city:

a. The budget is enacted into law permitting $3,000,000 in spending and estimating $2,950,000 in revenues will be received.

b. Property tax revenues of $2,800,000 are levied during the fiscal period and 5% are estimated to be uncollectable.

c. Employee salaries are paid totaling $1,900,000 during the fiscal period.

d. Purchase orders are issued totaling $1,000,000 during the fiscal period.

e. All good are received from the purchase orders with invoices of $990,000.

f. Property taxes are collected in the amount of $2,700,000.

g. Property taxes become delinquent and 2% of the delinquent taxes are estimated to be uncollectible.

h. H. License, permit and fine revenues of $100,000 are received during the fiscal period.

i. The vouchers payable outstanding are paid.

j. Ofice supplies are ordered just before fiscal year end (but not received) for $20,000.

k. The budgetary accounts are closed at fiscal year end.

MBA Level class

accounting 450869

Aug 29, 2021 | Uncategorized

Jack and Jill share income and losses in a 2:1 ratio after allowing for salaries to Jack of $12,583 and $35,364 to Jill. If the partnership suffers a $30,174 loss, by how much would Jill’s capital account increase?

Select the correct answer.

$30,174

$35,364

$5,190

$9,324

accounting help 450872

Aug 29, 2021 | Uncategorized

jane, castle and sean are dissolving their partnership. Their partnership agreement allocates

each partner and equal share of all income and losses.

the current period’s ending capital account balances are

Jane, $54,000; Castle $42,000 and Sean $6,000.

After all assets are sold and liabilities are paid, there is $90,000 in cash to be distributed.

Sean is unable to pay the deficiency. the journal entry to record the distribution should be:

a. Debit cast $90,000, debit sean, Capital $6,000, credit Jane, Capital $54,000, credit Castle, Capital $42,000

b. Debit Jane, Capital $54,000; debit Castle, Capital $36,000; credit cash $90,000

c. Debit Jane, Capital $54,000; debit Castle, Capital $42,000; credit cash $96,000

d. Debit cash $90,000; credit Jane, capital $30,000; credit Castle, Capital $30,000; credit Sean, Capital $30,000.

e. Debit Jane, Capital $51,000; debit Castle, Capital $39,000; credit cash $90,000

question help 450876

Aug 29, 2021 | Uncategorized

At January 1, 2010, LeAnna Industries reported owner’s equity of $130,000. During 2010, LeAnna had a net loss of $30,000 and owner drawings of $20,000. At December 31, 2010, the amount of owner’s equity is

$100,000.

$80,000.

$130,000.

$140,000

probelm 6 6 advanced accounting 450877

Aug 29, 2021 | Uncategorized

On January 1, 2011, Pepper Company purchases 80% of the common stock of Salty Company for $270,000. On this date, Salty has total owners’ equity of $300,000. The excess of cost over book value is due to goodwill. For tax purposes, goodwill is amortized over 15 years.

During 2011, Pepper appropriately accounts for its investment in Salty using the simple equity method.

During 2011, Pepper sells merchandise to Salty for $50,000, of which $10,000 is held by Salty on December 31, 2011. Pepper’s gross profit on sales is 40%.

During 2011, Salty sells some land to Pepper at a gain of $10,000. Pepper still holds the land at year end. Pepper and Salty qualify as an affiliated group for tax purposes and, thus, will file a consolidated tax return. Assume a 30% coporate income tax rate.

The following trial balances are prepared on December 31, 2011:

Pepper Co. Salty Co.

Inventory December 31Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦ 100,000 50,000

Other current AssetsAc€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦. 198,000 200,000

Investment in Salty CoAc€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦. 302,000

LandAc€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦. 240,000 100,000

Buildings and EquipmentAc€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦ 300,000 200,000

Accumulated DepreciationAc€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦.. (80,000) (60,000)

Current LiabilitiesAc€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦ (150,000) (50,000)

Long term LiabilitiesAc€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦… (200,000) (100,000)

Common StockAc€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦. (100,000) (50,000)

Paid in Capital in Excess of ParAc€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦.. (180,000) (100,000)

Retained EarningsAc€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦ (320,000) (150,000)

SalesAc€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦ (500,000) (300,000)

Cost of Goods SoldAc€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦. 300,000 180,000

Operating ExpensesAc€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦ 100,000 80,000

Subsidiary IncomeAc€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦… (40,000)

Gain on Sale of LandAc€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦ (10,000)

Dividends DeclaredAc€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦.. 30,000 10,000

TotalsAc€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦Ac€¦ 0 0

Prepare a consolidated worksheet for Pepper Company and subsidiary Salty Company for the year ended December 31, 2011. Include the determination and distribution of excess schedule and the income distribution schedules.

advanced accounting 450879

Aug 29, 2021 | Uncategorized

On January 1, 2012, Peanut Corporation acquires an 80% interest in Sunny Corporation. Information regarding the income and equity structure of the two companies as of the year ended December 31, 2014, is as follows:

Peanut Corp. Sunny Corp.

Internally generated net income $55,000 $56,000

Common shares outstanding during the year 20,000 12,000

Warrants to acquire Peanut stock, outstanding during the year 2,000 1,000

5% convertible (into Sunny’s shares) $100 par preferred shares

Outstanding during the year 800

Nonconvertible preferred shares outstanding 1,000

Additional information is as follows:

a) The warrants to acquire Peanut stock are issued in 2013. Each warrant can be exchanged for one share of Peanut common stock at an exercise price of $12 per share.

b) Each share of convertible preferred stock can be converted into two shares of Sunny common stock. The preferred stock pays an annual dividend totaling $4,000. Peanut owns 60% of the convertible preferred stock.

c) The nonconvertible preferred stock is issued on July 1, 2014, and pays a 6 month dividend totaling $500.

d) Relevant market prices per share of Peanut common stock during 2014 are as follows:

Average

First quarter $10

Second quarter 12

Third quarter 13

Fourth quarter 16

Compute the basic and diluted consolidated EPS for the year ended December 31, 2014. Use quarterly share averaging.

accounting 450880

Aug 29, 2021 | Uncategorized

On January 1, 2013, Piper Co. issued ten year bonds with a face value of $4,000,000 and a stated interest rate of 10%, payable semiannually on June 30 and December 31. The bonds were sold to yield 12%. Table values are:

Present value of 1 for 10 periods at 10%………………………. .386

Present value of 1 for 10 periods at 12%………………………. .322

Present value of 1 for 20 periods at 5%………………………… .377

Present value of 1 for 20 periods at 6%………………………… .312

Present value of annuity for 10 periods at 10%………………. 6.145

Present value of annuity for 10 periods at 12%………………. 5.650

Present value of annuity for 20 periods at 5%……………….. 12.462

Present value of annuity for 20 periods at 6%……………….. 11.470

(a) Calculate the issue price of the bonds.

(b) Without prejudice to your solution in part (a), assume that the issue price was $3,536,000. Prepare the amortization table for 2013, assuming that amortization is recorded on interest payment dates

available for sale and equity method investments compared 450893

Aug 29, 2021 | Uncategorized

On January 4, 2013, Runyan Bakery paid $350 million for 10 million shares of Lavery Labeling Company common stock. The investment represents a 30% interest in the net assets of Lavery and gave Runyan the ability to exercise significant influence over Lavery’s operations. Runyan received dividends of $3.5 per share on December 15, 2013, and Lavery reported net income of $280 million for the year ended December 31, 2013. The market value of Lavery’s common stock at December 31, 2013, was $33 per share. On the purchase date, the book value of Lavery’s net assets was $930 million and:

a.

The fair value of Lavery’s depreciable assets, with an average remaining useful life of six years, exceeded their book value by $60 million.

b.

The remainder of the excess of the cost of the investment over the book value of net assets purchased was attributable to goodwill.

Required:

1.

Prepare all appropriate journal entries related to the investment during 2013, assuming Runyan accounts for this investment by the equity method. (Enter your answers in millions. If no entry is required for a particular event, select “No journal entry required” in the first account field.)

2.

Prepare the journal entries required by Runyan, assuming that the 10 million shares represent a 10% interest in the net assets of Lavery rather than a 30% interest, and that Runyan accounts for the investment as available for sale. (Enter your answers in millions. If no entry is required for a particular event, select “No journal entry required” in the first account field.)

accounting 1010 450894

Aug 29, 2021 | Uncategorized

On January 8, the end of the first weekly pay period of the year, Regis Company’s payroll register showed that its employees earned $23,760 of office salaries and $60,840 of sales salaries. Withholdings from the employees’ salaries include FICA Social Security taxes at the rate of 6.20%, FICAMedicare taxes at the rate of 1.45%, $12,960 of federal income taxes, $1,420 ofmedical insurance deductions, and $900 of union dues. No employee earned more than $7,000 in this first period.

1.	Calculate below the amounts for each of these four taxes of Regis Company. Regis%u2019s merit rating reduces its state unemployment tax rate to 4% of the first $7,000 paid each employee. The federal unemployment tax rate is 0.8% Regis Companys FICA Social Security FICA Medicare FUTA SUTA

federal tax accounting 450895

Aug 29, 2021 | Uncategorized

Jason and Daniel are forming the JD Partnership. Jason contributes $300,000 cash, and Daniel contributes nondepreciable property (adjusted basis of $80,000 and a fair market value of $330,000). The property is subject to a $30,000 liability, which is also transferred into the partnership, and is shared equally by the partners for basis purposes. Jason and Daniel share in all partnership profits equally except for any precontribution gain, which must be allocated according to the statutory rules for built in gain allocations.

(I) What is Daniel’s adjusted tax basis for his partnership interest immediately after the partnership is formed?
(II) What is the partnership’s adjusted basis for the property contributed by Daniel?
(III) If the partnership sells the property contributed by Daniel for $360,000, how is the tax gain allocated between the partners?

accounting 450916

Aug 29, 2021 | Uncategorized

On June 8, Alton Co. issued an $83,286, 7%, 120 day note payable to Seller Co. Assuming a 360 day year for your calculations, what is the maturity value of the note?

Select the correct answer.

$83,286

$89,116

$5,830

$85,229

accounting 450917

Aug 29, 2021 | Uncategorized

During June, the receipts and issuances of Material No. A2FO are as follows:

		Received
June 3	Balance	1,100 units at $15
16		1,700 units at $17
29		900 units at $18

		Issued
June 11		700 units for Job No. 116
18		1,900 units for Job No. 117
30		800 units for Job No. 118

(a)	Determine the cost of each of the three issues under a perpetual system, using the first in, first out method.

(b)	Present the journal entry to record the issuance of the materials for the month, assuming that the cost of issuances is determined by the first in, first out method.

the cost of equipment purchased by charleston inc on june 286599

Aug 29, 2021 | Uncategorized

The cost of equipment purchased by Charleston, Inc., on June 1, 2012, is $89,000. It is estimated that the machine will have a $5,000 salvage value at the end of its service life. Its service life is estimated at 7 years; its total working hours are estimated at 42,000; and its total production is estimated at 525,000 units. During 2012, the machine was operated

6,000 hours and produced 55,000 units. During 2013, the machine was operated 5,500 hours and produced 48,000 units.

Instructions

Compute depreciation expense on the machine for the year ending December 31, 2012, and the year ending December 31, 2013, using the following methods.

(a) Straight line.

(b) Units of output.

(c) Working hours.

(d) Sum of the years’ digits.

(e) Declining balance (twice the straight line rate).

the financial statements of marks and spencer plc m s are 286604

Aug 29, 2021 | Uncategorized

The financial statements of Marks and Spencer plc (M&S) are available at the book’s companion website or can be accessed at http://corporate.marksandspencer. com/documents/publications/2010/Annual_Report_2010.

Instructions

Refer to M&S’s financial statements and the accompanying notes to answer the following questions.

(a) What descriptions are used by M&S in its statement of financial position to classify its property, plant, and equipment?

(b) What method or methods of depreciation does M&S use to depreciate its property, plant, and equipment?

(c) Over what estimated useful lives does M&S depreciate its property, plant, and equipment?

(d) What amounts for depreciation and amortization expense did M&S charge to its income statement in 2010 and 2009?

(e) What were the capital expenditures for property, plant, and equipment made by M&S in 2010 and 2009?

the financial statements of p g are presented in appendix 5b 286606

Aug 29, 2021 | Uncategorized

The financial statements of P&G are presented in Appendix 5B or can be accessed at the book’s companion website, www.wiley.com/college/kieso.

Instructions

Refer to P&G’s financial statements and the accompanying notes to answer the following questions.

(a) What descriptions are used by P&G in its balance sheet to classify its property, plant, and equipment?

(b) What method or methods of depreciation does P&G use to depreciate its property, plant, and equipment?

(c) Over what estimated useful lives does P&G depreciate its property, plant, and equipment?

(d) What amounts for depreciation and amortization expense did P&G charge to its income statement in 2009, 2008, and 2007?

(e) What were the capital expenditures for property, plant, and equipment made by P&G in 2009, 2008, and 2007?

the following data relate to the machinery account of eshkol 286608

Aug 29, 2021 | Uncategorized

The following data relate to the Machinery account of Eshkol, Inc. at December 31, 2012.

?

*In the year an asset is purchased, Eshkol, Inc. does not record any depreciation expense on the asset.

In the year an asset is retired or traded in, Eshkol, Inc. takes a full year’s depreciation on the asset.

The following transactions occurred during 2013.

(a) On May 5, Machine A was sold for $13,000 cash. The company’s bookkeeper recorded this retirement in the following manner in the cash receipts journal.

Cash …………………………………….. 13,000

Machinery (Machine A) …………………13,000

(b) On December 31, it was determined that Machine B had been used 2,100 hours during 2013.

(c) On December 31, before computing depreciation expense on Machine C, the management of Eshkol, Inc. decided the useful life remaining from January 1, 2013, was 10 years.

(d) On December 31, it was discovered that a machine purchased in 2012 had been expensed completely in that year. This machine cost $28,000 and has a useful life of 10 years and no salvage value. Management has decided to use the double declining balance method for this machine, which can be referred to as ?oMachine E.??

Instructions

Prepare the necessary correcting entries for the year 2013. Record the appropriate depreciation expense on the above mentionedmachines.

managerial accounting supports the management process most significantly by 286686

Aug 29, 2021 | Uncategorized

Managerial accounting supports the management process most significantly by:

A. measuring and reporting financial results after the fact.

B. determining the goals and objectives of the entity.

C. providing estimates of financial results for various plans.

D. establishing operating policies to be followed during a period of time.

_2. Activities included in a generally accepted definition of management accounting include:

A. planning, organizing, controlling

B. planning, operating, reporting

C. preparing, operating, creating

D. preparing, organizing, converting

_3. Which of the following activities is not part of the management planning and control

cycle:

A. data collection and performance feedback.

B. implementation of plans.

C. providing information to investors and creditors.

D. revisiting plans.

4. Performance analysis in the planning and control cycle relates to the act of:

A. planning.

B. managing.

C. controlling.

D. revising plans.

__ 5. Which of the following statements does not describe a characteristic of management

accounting?

A. Management accounting must conform to GAAP.

B. Approximate amounts rather than accurate amounts or refined estimates are often used in

management accounting.

C. Management accounting places a great deal of emphasis on the future.

D. Management accounting is more concerned with units of the organization rather than with the

organization as a whole.

_6. Management accounting is:

A. a highly technical subject that people in personnel or engineering should not be expected to

understand.

B. performed by individuals who seldom work with people in other functional areas of the organization.

C. the principal activity involved in determining the goals and objectives of the entity.

D. an activity that gets involved with virtually all of the other functional areas of the organization.

__________ 7. Managerial accounting, as opposed to financial accounting, is primarily concerned with:

A. preparing the current balance sheet of the company.

B. present and future planning and control.

C. providing information to investors and creditors.

D. historical results of operations.

__________ 8. Managerial accounting can best be described as:

A. the preparation and distribution of the financial statements.

B. the preparation and distribution of the corporate tax return.

C. the preparation and use of accounting information within the organization.

D. meeting the requirements of generally accepted accounting principles.

_9. Simplifying assumptions made when using cost behavior pattern data include:

A. relevant range and liquidity.

B. fixed activity and linearity.

C. relevant range and linearity.

D. activity range and variability.

__________ 10. Which of the following is another term for mixed costs?

A. semifixed costs.

B. semivariable costs.

C. component costs.

D. none of these.

11. Cost behavior refers to:

A. costs that are both good and bad.

B. costs that increase at a quicker rate than others.

C. costs that decrease at a quicker rate than others.

D. costs that are variable or fixed.

E. none of these.

_________ 12. Knowledge about the behavior pattern of a cost is important to understanding the effect

on net income of a change in sales volume because as sales volume changes:

A. net income will change proportionately.

B. the effect on net income will depend on the behavior pattern of various costs.

C. fixed costs will rise proportionately.

D. variable costs will not change.

__________ 13. An example of a cost likely to have a fixed behavior pattern is:

A. sales force commission.

B. production labor wages.

C. advertising cost.

D. electricity cost for packaging equipment.

14. An example of a cost likely to have a mixed behavior pattern is:

A. sales force commission.

B. raw material cost.

C. depreciation of production equipment.

D. electricity cost for the manufacturing plant.

__________ 15. The cost of a single unit of production in excess of the breakeven point in units is:

A. its fixed cost and variable cost.

B. its fixed cost only.

C. its variable cost only.

D. none of these.

_16. To which function of management is Cost Volume Profit Analysis most applicable?

A. Planning.

B. Organizing.

C. Directing.

D. Controlling.

Use to information below to answer questions 17 & 18

Selling price per unit $ 100

Variable expenses per unit $ 40 Fixed expenses per month $60,000

__________ 17. The break even point volume of units is:

A. 0

B. 360

C. 720

D. 1000

__________ 18. The break even point in terms of total revenues per month is:

A. $30,000

B. $60,000

C. $75,000

D. $100,000

_________ 19. All of the following are characteristics of managerial accounting, except:

A. Reports are used primarily by insiders rather than by persons outside of the business entity.

B. Its purpose is to assist managers in planning and controlling business operations.

C. Information must be developed in conformity with generally accepted accounting principles or

with income tax regulations.

D. Information may be tailored to assist in specific managerial decisions.

__________ 20. In comparison with a financial statement prepared in conformity with generally accepted

accounting principles, a managerial accounting report is more likely to:

A. Be used by decision makers outside of the business organization

B. Focus upon the operation results of the most recently completed accounting period.

C. View the entire organization as the reporting entity.

D. Be tailored to the specific needs of an individual decision maker

__________ 21. Which of the following provides information that is intended primarily for use by internal

management in decision making required to run the business?

Attachments:

Manag Acc p1.RTF

Mana Acc p2.RTF

Mana ACC p3.RTF

Mana Acc p4.RTF

Mana Acc p5.RTF

what is the revenue and collection cycle 286738

Aug 29, 2021 | Uncategorized

FOR AUDIT 460… COMPLETE AND TURN IN TO CLASS ON
APRIL 8, 2013.

You are to complete a memo about the REVENUE AND COLLECTION CYCLE. You are to address the following points in your memo.

What is the revenue and collection cycle?
In addition to ACCOUNTS RECEIVABLE, what are two other significant accounts related to REVENUE and COLLECTION?
For ACCOUNTS RECEIVABLE, we often use CONFIRMATION LETTERS. What are the 2 types of confirmation letters (identify them and explain their differences)? Also, what are the relevant assertions we are testing with confirmation letters (should be at least 2)?

Value: 30 points

As always, the document should be written as if you were preparing it for an Audit in Charge or Audit partner. Word processed, stapled, and be sure to include your name and section number. I expect that it will require more than 1 page to sufficiently complete the assignment, but perhaps no more than 2.

Late assignments are not accepted.

ALSO, upload to TURNITIN on Blackboard. There will be a spot in the TURNITIN folder.

Prof. Meder

Document Preview:

FOR AUDIT 460… COMPLETE AND TURN IN TO CLASS ON APRIL 8, 2013. You are to complete a memo about the REVENUE AND COLLECTION CYCLE. You are to address the following points in your memo. What is the revenue and collection cycle? In addition to ACCOUNTS RECEIVABLE, what are two other significant accounts related to REVENUE and COLLECTION? For ACCOUNTS RECEIVABLE, we often use CONFIRMATION LETTERS. What are the 2 types of confirmation letters (identify them and explain their differences)? Also, what are the relevant assertions we are testing with confirmation letters (should be at least 2)? Value: 30 points As always, the document should be written as if you were preparing it for an Audit in Charge or Audit partner. Word processed, stapled, and be sure to include your name and section number. I expect that it will require more than 1 page to sufficiently complete the assignment, but perhaps no more than 2. Late assignments are not accepted. ALSO, upload to TURNITIN on Blackboard. There will be a spot in the TURNITIN folder. Prof. Meder

Attachments:

REVMEMO.docx

CONFIRMATION ….docx

long term liabilities bonds payable and notes 286756

Aug 29, 2021 | Uncategorized

Star mart company inc issued $100000 of bonds payable on June 30 2010. The bonds are to be redeemed in five years while paying interest semiannually at the contract rate of 10% each June 30th and December 31st. The market or effective rate of interest is 12%. The amount of cash received initially from the bond issuance was $92640 on June 30,2010.

Instructions

1)Record the initial bond issuance on June 30 2010 in general journal form.

2)Record the first interest payment on December 31, 2010

3)Record the first amortization of the bond discount on December 31,2010. The bond discount is amortized on the straight line method.

4)Record the second interest payment on June 30 2011

5)Record the third interest payment on December 31 2011

6)The company only records the amortization of the bond discount once a year. record the second amortization of the bond discount on December 31,2011 using the straight line method.

7)In T account form, what is the balance of the unmamorized Discount on Bonds payable at December 31,2011.

8)What is the total interest expense for year 2010

9)What is the total interest expense for the year 2011

10)List the bond carrying value for the bond at December 31 2011

price 286763

Aug 29, 2021 | Uncategorized

How much would you charge for the solution to this exercise (preparation of a Corrected Balance Sheet)

Document Preview:

Problem #1 You must use an “Excel” spreadsheet for your answer. Axion Corporation Balance Sheet December 31, 201X Assets Cash $ 32,500 Accounts receivable 174,175 Land 140,000 Building 400,000 Equipment 100,000 Less: Accumulated depreciation (80,000) Prepaid expenses 14,000 Patent 20,000 Inventory 50,000 Total Assets $ 850,675 Liabilities and Owners’ Equity Accounts payable $ 77,300 Mortgage payable 150,000 Taxes payable 40,000 Unearned revenue 11,000 Common stock 50,000 Retained earnings 522,375 Total Liabilities and Owners’ Equity $ 830,675 The books have been closed for the year. Any changes in revenues or expenses will be adjusted to Retained Earnings. Additional Information: 1) Cash included a customer’s check in the amount of $2,000 that was deposited on December 28th, but was returned marked “NSF” on January 4th, the following year. The customer has gone out of business and cannot be located. 2) It is estimated at 5% of the receivables will be uncollectible. 3) A review of the land, building and equipment account indicated the land cost $140,000. The building cost was $400,000, and the equipment cost $100,000. Depreciation on the building has been calculated on the straight line method using a 40 year useful life and has been on the books for eight years. The equipment was purchased two years ago and is being depreciated on the straight line method with a useful life of 10 years. The depreciation has not been recorded for this year. 4) The patent was purchased on January 2nd of the current year and has a legal life of 20 years. No amortization has been recorded for the current period. 5) $5,000 of the mortgage payable is due within the next 12 months. 6) $11,000 was recorded as unearned revenue when it was received in advance for a customer’s order back in September. The goods were…

Attachments:

Questions for….doc

Aug 29, 2021 | Uncategorized

B&R, Inc. is one of the world’s largest manufacturers and distributors of consumer products, including household cleaning supplies and health and beauty products. Last year, net sales revenues exceeded $5 billion. B&R has multiple information systems, including an integrated accounting system, a computerized manufacturing information system, and a supply chain management software system. The company is considering an ERP system to be able to conduct more of its business over the Internet. B&R hired National Consulting Firm (NCF), and NCF recommended the move to an ERP system, which would have electronic commerce interfaces that will allow B&R to sell its products to its business customers through its website. The cost/benefit justification for the new software, which comes with an estimated price tag of $100 million (including consultant fees, all implementation, and training costs) shows that B&R can expect great cost savings from improved business processes that the ERP system will help the company to adopt. NCF implements the ERP, adopting the industry’s best practices for many of the business processes.

a. What are the likely advantages of an ERP system for B&R?

b. Visit the websites of the major ERP vendors. What are some of the characteristics you notice about their customers?

c. B&R has heard some horror stories from other CEOs about ERP implementations. What are some of the concerns B&R should address as they move forward with this project?

balance sheet accounts and their use choose from the following 286848

Aug 29, 2021 | Uncategorized

Balance Sheet Accounts and Their Use Choose from the following list of account titles the one that most accurately fits the description of that account or is an example of that account. An account title may be used more than once or not at all.

Cash Accounts Receivable Notes Receivable

Prepaid Asset Land Buildings

InvestmentsAccounts Payable Notes Payable

Taxes Payable Retained Earnings Common Stock

Preferred Stock

___________________________ 1. A written obligation to repay a fixed amount, with interest, at some time in the future

___________________________ 2. Twenty acres of land held for speculation

___________________________ 3. An amount owed by a customer

___________________________ 4. Corporate income taxes owed to the federal government

___________________________ 5. Ownership in a company that allows the owner to receive dividends before common shareholders receive any distributions

___________________________ 6. Five acres of land used as the site for a factory

___________________________ 7. Amounts owed on an open account to a vendor, due in 90 days

___________________________ 8. A checking account at a bank

___________________________ 9. A warehouse used to store equipment

__________________________ 10. Claims by the owners on the undistributed net income of a business

___________________________11.Rent paid on an office building in advance of use of the facility

managerial accounting journalize the transactions 450743

Aug 29, 2021 | Uncategorized

Haslett Corporation uses standard costs with its job order cost accounting system. In January, an order (Job No. 12) for 1,900 units of Product B was received. The standard cost of one unit of Product B is as follows.

Direct materials	2 pounds at $1.00 per pound	$ 2.00
Direct labor	2.00 hour at $8 per hour	16.00
Overhead	2 hours (variable $4.50 per machine hour; fixed $2.50 per machine hour)	14.00
Standard cost per unit		$32.00

Normal capacity for the month was 4,100 machine hours. During January, the following transactions applicable to Job No. 12 occurred.

1.		Purchased 4,256 pounds of raw materials on account at $1.05 per pound.
2.		Requisitioned 4,256 pounds of raw materials for Job No. 12.
3.		Incurred 3,895 hours of direct labor at a rate of $7.91 per hour.
4.		Worked 3,895 hours of direct labor on Job No. 12.
5.		Incurred manufacturing overhead on account $33,120.
6.		Applied overhead to Job No. 12 on basis of standard machine hours allowed.
7.		Completed Job No. 12.
8.		Billed customer for Job No. 12 at a selling price of $150,100.

mangerial accounting 450746

Aug 29, 2021 | Uncategorized

Hello can anyone help me with Mangerial accounting !

Speedy Parcel Service operates a fleet of delivery trucks in a large metropolitan area. A careful study by the company’s cost analyst has determined that if a truck is driven 132,000 miles during a year, the average operating cost is 14.2 cents per mile. If a truck is driven only 88,000 miles during a year, the average operating cost increases to 17.6 cents per mile.

Required:
1.	Using the high low method, estimate the variable and fixed cost elements of the annual cost of truck operation. (Round the “Variable cost per mile” to 3 decimal places and the “Fixed cost” to the nearest dollar amount.)


Variable cost	$	per mile
Fixed cost	$	per year

2.	Express the variable and fixed costs in the form Y = a + bX. (Round the “Variable cost per mile” to 3 decimal places and the “Fixed cost” to the nearest dollar amount.)

Y =

$

+

$

X

3.	If a truck were driven 110,000 miles during a year, what total cost would you expect to be incurred?(Round the “Variable cost per mile” to 3 decimal places. Round your intermediate and final answers to the nearest dollar amount.)

Total annual cost

$

acct203 450752

Aug 29, 2021 | Uncategorized

Hi Tek Labs performs steroid testing services to high schools, colleges, and universities.
Because the company deals solely with educational institutions, the price of
Each test is strictly regulated. Therefore, the costs incurred must be carefully monitored
And controlled. Shown below are the standard costs for a typical test.
Direct materials (1 petrie dish @ $2 per dish) $ 2.00
Direct labor (0.5 hours @ $20 per hour) 10.00
Variable overhead (0.5 hours @ $8 per hour) 4.00
Fixed overhead (0.5 hours @ $3 per hour) 1.50
Total standard cost per test $17.50
The lab does not maintain an inventory of petrie dishes. Therefore, the dishes purchased
Each month are used that month. Actual activity for the month of May 2010, when
2,000 tests were conducted, resulted in the following.
Direct materials (2,020 dishes) $ 4,242
Direct labor (995 hours) 20,895
Variable overhead 8,100
Fixed overhead 3,400
Monthly budgeted fixed overhead is $3,600.
Instructions
(a) Compute the price and quantity variances for direct materials and direct labor.
(b)compute the controllable and volume variances for overhead.
(c) Provide possible explanations for each unfavorable variance.

managerial accounting 450756

Aug 29, 2021 | Uncategorized

Hite Company has developed the following standard costs for its product for 2009:

The company expected to produce 25,000 units of Product A in 2009 and work 75,000 direct labor hours.

Actual results for 2009 are as follows:

26,000 units of Product A were produced.
Actual direct labor costs were $630,800 for 76,000 direct labor hours worked.
Actual direct materials purchased and used during the year cost $283,500 for 105,000 pounds.
Actual variable overhead incurred was $130,000 and actual fixed overhead incurred was $170,000.
Instructions:
Compute the following variances showing all computations to support your answers. Clearly indicate whether the variances are favorable or unfavorable. Show your work.

HITE COMPANY
Standard Cost Card

Product A

Cost Element

Standard Quality

x Standard Price

= Standard

Direct materials

4 pounds

$3

$12

Direct labor

3 hours

8

24

Manufacturing overhead

3 hours

4

12

$48

Materials quantity variance.
Total direct labor variance.
Direct labor quantity variance.
Direct materials price variance.
Total overhead variance.

acct 102 450757

Aug 29, 2021 | Uncategorized

Holton Company has the following equivalent units for July:

materials 10,000 and conversion 9,000.

Production cost data are:

Work in process, July 1 Material cost $4,800, conversion costs $2,250.

Cost added during July were:

for materials, $37,800; for conversion, $31,500.

The unit production costs for July are:

$4.26 Materials and $3.75 Conversion Costs

$3.78 Materials and $3.50 Conversion

$4.26 Materials and $3.50 Conversion Costs

$3.78 Materials and $3.75 Conversion

accounting 450760

Aug 29, 2021 | Uncategorized

The Home Depot , Inc. annual report 2009, appears in Appendix A at the end of this textbook. The online text book does not contain Appendix A.

Home Depot Financial Analysis

1. Calculate the current ratio for y/e 2/1/09 and y/e 1/31/10.

2. What were the diluted earnings per share for y/e 2/3/08?

3. What is the company policy regarding goodwill?

4. How many shares of common stock were outstanding at February 1, 2009? January 31, 2010?

5. Depreciation and amortization expense represented what percent of net earnings for y/e 2/1/09? Please carry to two decimal places.

6. How much were the cash dividends per share in 2009? (hint see 10 year summary)

7. What is the company debt ration for y/e 1/31/2010?

8. What are the useful lives the Company uses for estimating depreciation for Building, Furniture, Fixture & Equipment, and Leasehold Improvements?

9. What is the Company policy for the sale of and recgnition of the revenue on gift cards?

10. What is the average square foot size of the HOme Depot stores? Approximately how many diffrent kinds of building materials improvement supplies does each store stock? How many stores was the company operating at the end of fiscal year 2009?

11. What were the net earnings at 2/1/09 and 2/3/08?

12. How many million shares of Treasury stock were there at 1/31/10 and 2/1/09?

13.What was the amount of receivables due from customers at 1/31/10?

14. What was the total relating to production costs for print and broadcast advertising as well as sponsorship promotions for fiscal years 2009 and 2008?

15. In fiscal year 2009, what was the Company’s gross advertising expense?

material price variance 450772

Aug 29, 2021 | Uncategorized

Hurren Corporation makes a product with the following standard costs

Inputs	Standard Quantity or Hours	Standard Price or Rate	Standard Cost Per Unit
Direct materials	5.6 grams	$4.00 per gram	$22.40
Direct labor	1.9 hours	$19.00 per hour	$36.10
Variable overhead	1.9 hours	$4.00 per hour	7.60

The company reported the following results concerning this product in June.

Originally budgeted output	5,400	units
Actual output	5,300	units
Raw materials used in production	28,500	grams
Actual direct labor hours	5,700	hours
Purchases of raw materials	33,000	grams
Actual price of raw materials purchased	$4.10	per gram
Actual direct labor rate	$19.90	per hour
Actual variable overhead rate	$3.70	per hour

The company applies variable overhead on the basis of direct labor hours. The direct materials price variance is computed when the materials are purchased.

The materials price variance for June is:

1.3,300 U

2.$2,872 F

3.$2,872 U

4.$3,300 F

great adventures problem 10 1 part 2 450724

Aug 29, 2021 | Uncategorized

Great Adventures Problem 10 1

[The following information applies to the questions displayed below.]

Tony and Suzie purchased land costing $500,000 for a new camp in January 2014. Now they need money to build the cabins, dining facility, a ropes course, and an outdoor swimming pool. Tony and Suzie first checked with Summit Bank to see if they could borrow another million dollars, but unfortunately the bank turned them down as too risky. Undeterred, they promoted their idea to close friends they had made through the outdoor clinics and TEAM events. They decided to go ahead and sell shares of stock in the company to raise the additional funds for the camp. Great Adventures has two classes of stock authorized: 8%, $10 par preferred, and $1 par value common.

When the company began on July 1, 2012, Tony and Suzie each purchased 10,000 shares of $1 par value common stock at $1 per share. The following transactions affect stockholders’ equity during 2014, its third year of operations:

Jul.

2

Issue an additional 100,000 shares of common stock for $12 per share.

Sep.

10

Repurchase 10,000 shares of its own common stock (i.e., treasury stock) for $15 per share.

Nov.

15

Reissue 5,000 shares of treasury stock at $16 per share.

Dec.

1

Declare a cash dividend on its common stock of $115,000 ($1 per share) to all stockholders of record on December 15. The dividend is payable on December 31.

For Part 1 I got:

Date	General Journal	Debit	Credit
Jul 02	Cash	1,200,000
	Common stock		100,000
	Additional paid in capital		1,100,000

Sep 10	Treasury stock	150,000
	Cash		150,000

Nov 15	Cash	80,000
	Treasury stock		75,000
	Additional paid in capital		5,000

Dec 01	Dividends	115,000
	Dividends payable		115,000

Dec 31	Dividends payable	115,000
	Cash		115,000

Im struggling with part 2:

Great Adventures Problem 10 1 Part 2

2.	Great Adventures has net income of $150,000 in 2014. Retained earnings at the beginning of 2014 was $140,000. Prepare the stockholders’ equity section of the balance sheet for Great Adventures as of December 31, 2014.

accy help please 450736

Aug 29, 2021 | Uncategorized

Hadley, Inc. makes a line of bathroom accessories. Because of a decline in sales, the company has 10,000 machine hours of idle capacity available each year. This idle capacity could be used by the company to make, rather than buy, one of the components used in its production process. Hadley needs 5,000 units of this component each year. At present, the component is being purchased from an outside supplier at $7.50 per unit. Variable production cost for the component would be $4.10 per unit, and additional supervisory costs would be $18,000 per year. Already existing fixed costs that would be allocated to this part amount to $300,000 per year.

If the company decides to make the component, the overall annual net operating income that would result from making the component, rather than buying it, would be:

accounting help 450737

Aug 29, 2021 | Uncategorized

Hagerman Corporation’s most recent income statement appears below:

Sales (all on account)	$470,000
Cost of goods sold	282,000
Gross margin	188,000
Selling and administrative expense	94,000
Net operating income	94,000
Interest expense	23,500
Net income before taxes	70,500
Income taxes (30%)	21,150
Net income	$49,350

The beginning balance of total assets was $260,000 and the ending balance was $162,000. The return on total assets is closest to:

	44.55%
	33.41%
	31.18%

calculating cost 286388

Aug 29, 2021 | Uncategorized

Assignment 2: Calculating Cost

Ontario, Inc. manufactures two products, Standard and Enhanced, and applies overhead on the basis of direct labor hours. Anticipated overhead and direct labor time for the upcoming accounting period is $800,000 and 25,000 hours, respectively. Information about the company’s products follows.

Standard: Enhanced:

Estimated production volume
3,000 units 4,000 units

Direct material cost
$25 per unit $40 per unit

Direct labor per unit
3 hours at $12 per hour 4 hours at $12 per hour

Ontario’s overhead of $800,000 can be identified with three major activities: order processing ($150,000), machine processing ($560,000), and product inspection ($90,000). These activities are driven by number of orders processed, machine hours worked, and inspection hours, respectively.

Data relevant to these activities follow:

Orders Processed Machine Hours Worked Inspection Hours

Standard
300 18,000 2,000

Enhanced
200 22,000 8,000

Total
500 40,000 10,000

Top management is very concerned about declining profitability despite a healthy increase in sales volume. The decrease in income is especially puzzling because the company recently undertook a massive plant renovation during which new, highly automated machinery was installed—machinery that was expected to produce significant operating efficiencies.

Using a Microsoft Excel format for calculations, complete the following:

Assuming use of direct labor hours to apply overhead to production, calculate the unit manufacturing costs of the standard and enhanced products if the expected manufacturing volume is attained.
Assuming the use of activity based costing, calculate the unit manufacturing cost of the standard and enhanced products if the expected manufacturing volume is attained.
Ontario’s selling price is based heavily on cost:
- Calculate which product is over cost and which is under cost by using direct labor hours as an application base.
- Explain if it is possible that this over costing and under costing is responsible for the profit issues the company is facing.
Illustrate how the solution will change if the following data changes:
- The overhead associated with order processing is $300,000 and the overhead associated with product inspection is $270,000.

Present your work in Microsoft Excel spreadsheet format. Apply APA standards to citation of sources. Use the following file naming convention: LastnameFirstInitial_M5_A2.xls.

ByThursday, April 4, 2013, deliver your assignment to theM5: Assignment 2 Dropbox.

Assignment 2 Grading Criteria	Maximum Points
Assuming the use of direct labor hours to apply overhead to production, calculated the unit manufacturing costs of the standard and enhanced products if the expected manufacturing volume is attained.	16
Assuming the use of activity based costing, calculated the unit manufacturing cost of the standard and enhanced products if the expected manufacturing volume is attained.	16
Calculated which product is over cost and which is under cost by using direct labor hours as an application base.	16
Explained if it is possible that this over costing and under costing is responsible for the profit issues the company is facing.	16
Illustrated how the solution will change if the following data changes in the described example.	12
Wrote in a clear, concise, and organized manner; demonstrated ethical scholarship in accurate representation and attribution of sources; and displayed accurate spelling, grammar, and punctuation.	4
Total:	80

For assistance with any problems you may have when completing this assignment—OR—to offer your assistance to classmates, please use theProblems and Solutions Discussionarea located through the left side navigation link.

comprehensive depreciation computations kohl beck corporation a 286395

Aug 29, 2021 | Uncategorized

Aug 29, 2021 | Uncategorized

Electroboy Enterprises, Inc. operates several stores throughout the western United States. As part of an operational and financial reporting review in a response to a downturn in its markets, the company’s management has decided to perform an impairment test on five stores (combined). The five stores’ sales have declined due to aging facilities and competition from a rival that opened new stores in the same markets. Management has developed the following information concerning the five stores as of the end of fiscal 2011.

Original cost …………………………..$36 million

Accumulated depreciation …………….$10 million

Estimated remaining useful life ……………4 years

Estimated expected future

annual cash fl ows (not discounted) …..$4.0 million per year

Appropriate discount rate ……………..5 percent

Accounting

(a) Determine the amount of impairment loss, if any, that Electroboy should report for fiscal 2011 and the book value at which Electroboy should report the five stores on its fiscal year end 2011 balance sheet. Assume that the cash flows occur at the end of each year.

(b) Repeat part (a), but instead, assume that (1) the estimated remaining useful life is 10 years, (2) the estimated annual cash flows are $2,720,000 per year, and (3) the appropriate discount rate is 6 percent.

Analysis

Assume that you are a financial analyst and you participate in a conference call with Electroboy management in early 2012 (before Electroboy closes the books on fiscal 2011). During the conference call, you learn that management is considering selling the five stores, but the sale won’t likely be completed until the second quarter of fiscal 2012. Briefly discuss what implications this would have for Electroboy’s 2011 financial statements. Assume the same facts as in part (b) above.

Principles

Electroboy management would like to know the accounting for the impaired asset in periods subsequent to the impairment. Can the assets be written back up? Briefly discuss the conceptual arguments for this accounting.

guenther and firmin both of whom are cpas form a 286469

Aug 29, 2021 | Uncategorized

Guenther and Firmin, both of whom are CPAs, form a partnership, with Guenther investing $100,000 and Firmin, $80,000. They agree to share net income as follows:

1. Salary allowances of $80,000 to Guenther and $50,000 to Firmin.

2. Interest allowances at 15 percent of beginning capital account balances.

3. Any partnership earnings in excess of the amount required to cover the interest and salary allowances to be divided 60 percent to Guenther and 40 percent to Firmin.

The partnership net income for the first year of operations amounted to $247,000 before interest and salary allowances. Show how this $247,000 should be divided between the two partners.

Use a three column schedule of the type illustrated in Exhibit C 9.

Required:

List on separate lines the amounts of interest, salaries, and the residual amount divided. (Leave no cells blank be certain to enter “0” wherever required. Negative amount should be indicated by a minus sign. Omit the “$” sign in your response.)

matt holmes recently joined klax company as a staff accountant 286536

Aug 29, 2021 | Uncategorized

Matt Holmes recently joined Klax Company as a staff accountant in the controller’s office. Klax Company provides warehousing services for companies in several European cities. The location in Koblenz, Germany, has not been performing well due to increased competition and the loss of several customers that have recently gone out of business. Matt’s department manager suspects that the plant and equipment may be impaired and wonders whether those assets should be written down. Given the company’s prior success, this issue has never arisen in the past, and Matt has been asked to conduct some research on this issue.

Instructions

Access the IFRS authoritative literature at the IASB website (http://eifrs.iasb.org/). When you have accessed the documents, you can use the search tool in your Internet browser to respond to the following questions. (Provide paragraph citations.)

(a) What is the authoritative guidance for asset impairments? Briefl y discuss the scope of the standard (i.e., explain the types of transactions to which the standard applies).

(b) Give several examples of events that would cause an asset to be tested for impairment. Does it appear that Klax should perform an impairment test? Explain.

(c) What is the best evidence of fair value? Describe alternate methods of estimating fair value.

natural resources timber bronson paper products purchased 10 000 286541

Aug 29, 2021 | Uncategorized

Natural Resources—Timber Bronson Paper Products purchased 10,000 acres of forested timberland in March 2010. The company paid $1,700 per acre for this land, which was above the $800 per acre most farmers were paying for cleared land. During April, May, June, and July 2010, Bronson cut enough timber to build roads using moveable equipment purchased on April 1, 2010. The cost of the roads was $250,000, and the cost of the equipment was $225,000; this equipment was expected to have a $9,000 salvage value and would be used for the next 15 years. Bronson selected the straight line method of depreciation for the moveable equipment. Bronson began actively harvesting timber in August and by December had harvested and sold 540,000 board feet of timber of the estimated 6,750,000 board feet available for cutting. In March 2011, Bronson planted new seedlings in the area harvested during the winter. Cost of planting these seedlings was $120,000. In addition, Bronson spent $8,000 in road maintenance and $6,000 for pest spraying during calendar year 2011. The road maintenance and spraying are annual costs. During 2011 Bronson harvested and sold 774,000 board feet of timber of the estimated 6,450,000 board feet available for cutting. In March 2012, Bronson again planted new seedlings at a cost of $150,000, and also spent $15,000 on road maintenance and pest spraying. During 2012, the company harvested and sold 650,000 board feet of timber of the estimated 6,500,000 board feet available for cutting. Compute the amount of depreciation and depletion expense for each of the 3 years (2010, 2011, 2012). Assume that the roads are usable only for logging and therefore are included in the depletion base.

t account analysis 286557

Aug 29, 2021 | Uncategorized

FM Midterm January 2013: T Account Analysis
During 2012 the following events took place for a small distribution company. You are required to
prepare the accounting entries for each event by:
labelling the T accounts with the correct account name
labelling debit and credit on the T account
entering the amount on the correct side of each T account.
You are only required to enter the events as described in 2012; do not attempt to combine all 12 events
into a single financial statement. Note that answers may require more or less than four T accounts.
Explain any assumptions.

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And the following questions are continue as : On December31st the company sells on credit 5000 USD of goods which were bought a month previously at a cost of 3500 USD….

presented below is information related to equipment owned by puj 286571

Aug 29, 2021 | Uncategorized

Presented below is information related to equipment owned by Pujols Company at December 31, 2012.

Cost (residual value $0) …………………..$9,000,000

Accumulated depreciation to date …………1,000,000

Value in use ……………………………….5,500,000

Fair value less cost of disposal …………….4,400,000

Assume that Pujols will continue to use this asset in the future. As of December 31, 2012, the equipment has a remaining useful life of 8 years. Pujols uses straight line depreciation.

Instructions

(a) Prepare the journal entry (if any) to record the impairment of the asset at

December 31, 2012.

(b) Prepare the journal entry to record depreciation expense for 2013.

(c) The recoverable amount of the equipment at December 31, 2013, is $6,050,000.

Prepare the journal entry (if any) necessary to record this increase.

bond computations straight line amortization 286583

Aug 29, 2021 | Uncategorized

Southlake Corporation issued $900,000 of 8% bonds on March 1, 20X1. The bonds pay interest on March 1 and September 1 and mature in 10 years. Assume the independent cases that follow.

· Case A—The bonds are issued at 100.

· Case B—The bonds are issued at 96.

· Case C—The bonds are issued at 105.

Southlake uses the straight line method of amortization.

Instructions:

Complete the following table:
	Case A	Case B	Case C
Cash inflow on the issuance date	_______	_______	_______
Total cash outflow through maturity	_______	_______	_______
Total borrowing cost over the life of the bond issue	_______	_______	_______
Interest expense for the year ended December 31, 20X1	_______	_______	_______
Amortization for the year ended December 31, 20X1	_______	_______	_______
Unamortized premium as of December 31, 20X1	_______	_______	_______
Unamortized discount as of December 31, 20X1	_______	_______	_______
Bond carrying value as of December 31, 20X1	_______	_______	_______

the coca cola company and pepsico inc instructions go to the 286595

Aug 29, 2021 | Uncategorized

The Coca Cola Company and PepsiCo., Inc.

Instructions

Go to the book’s companion website and use information found there to answer the following questions related to The Coca Cola Company and PepsiCo, Inc.

(a) What amount is reported in the balance sheets as property, plant, and equipment (net) of Coca Cola at December 31, 2009, and of PepsiCo at December 26, 2009? What percentage of total assets is invested in property, plant, and equipment by each company?

(b) What depreciation methods are used by Coca Cola and PepsiCo for property, plant, and equipment? How much depreciation was reported by Coca Cola and PepsiCo in 2009, 2008, and 2007?

(c) Compute and compare the following ratios for Coca Cola and PepsiCo for 2009.

(1) Asset turnover.

(2) Profit margin on sales.

(3) Rate of return on assets.

(d) What amount was spent in 2009 for capital expenditures by Coca Cola and PepsiCo? What amount of interest was capitalized in 2009?

part one 450601

Aug 29, 2021 | Uncategorized

Express the income statement data in common size percents. (Round your answers to 2 decimal places. Omit the “%” sign in your response.)

ill rate five points if you solve this question

BENNINGTON COMPANY Common Size Comparative Income Statements For Years Ended December 31, 2012, 2011, and 2010
	2012	2011	2010
Sales	%	%	%
Cost of goods sold

Gross profit
Selling expenses
Administrative expenses

Total expenses

Income before taxes
Income taxes

Net income	%	%	%

3.	Express the balance sheet data in trend percents with 2010 as the base year. (Round your answers to 2 decimal places. Leave no cells blank be certain to enter “0” wherever required. Omit the “%” sign in your response.)

BENNINGTON COMPANY Balance Sheet Data in Trend Percents December 31, 2012, 2011, and 2010
	2012	2011	2010
Assets
Current assets	%	%	%
Long term investments
Plant assets

Total assets

Liabilities and Equity
Current liabilities	%	%	%
Common stock
Other contributed capital
Retained earnings

Total liabilities and equity

communicating audit results 450604

Aug 29, 2021 | Uncategorized

Facts:

During its assessment of the accounts payable department, the internal audit function identified the following observations, which have been agreed to by management;

Inadequate segregation of duties over certain information system access controls. Potential loss exposure of $45 million.

Several instance of transactions that were not properly recorded in subsidiary ledgers. Transactions were not material either individually or in the aggregate. Potential loss exposure of $60 million.

A lack of timely reconciliation of the account balances affected by the improperly recorded transactions. Potential loss exposure of $25 million.

Management and the independent auditors has determined that an amount less than $20 million is inconsequential in impact and that an amount greater than $80 million is material in impact.

Questions:

I. Based only on these facts, determine the following for each observation;.

The COSO objectives category affected by each observation.

Classify each observation in terms of its design adequacy and operating effectiveness.

Assess whether each observations is insignificant, significant or material.

And finally, provide your overall conclusions for this audit of accounts payable

II. Describe what should be communicated and to whom, regarding these observations and conclusions by:

Internal audit, and
Company management.

please help 450609

Aug 29, 2021 | Uncategorized

For your Farm Branch Rental project, complete the following:

Journalize the following December 2011 transactions in QuickBooks:

December 1: Issued to Larry and Samantha West 10,000 shares of capital stock each, in exchange for a total of $200,000 cash.
December 1: Purchased for $240,000 all of the equipment formerly owned by LMNOP Rental. Paid $140,000 cash, and issued a one year note payable for $100,000.
December 1: Paid $12,000 to HJW Realty as three months%u2019 advance rent on the rental yard and the office formerly occupied by LMNOP Rentals.
December 4: Purchased office supplies on account from Modern Office Supply Co. for $1,000. Payment is due in 30 days. (These supplies are expected to last for several months; debit the Office Supplies asset account.)
December 8: Received $8,000 cash as advance payment on an equipment rental from Geller Construction Company. (Credit unearned rental fees.)
December 12: Paid salaries for the first two weeks in December, in the amount of $5,200.
December 15: Excluding the Geller advance payment of $8,000, equipment rental fees earned during the first 15 days of December amounted to $18,000, $12,000 of which was received in cash and $6,000 AR to be collected from Gellar.
December 17: Purchased on account from Relocating, Inc., were $600 in parts needed to repair a rental tractor. (Debit an expense account). Payment is due in 10 days.
December 23: Collected $2,000 of the accounts receivable recorded on December 15 from Geller.
December 23: Rented a back hoe to Rocks Etc. at a price of $250 per day, to be paid when the backhoe is returned. Rocks Etc. expects to keep the backhoe for about two weeks. (The company is using accrual basis method of accounting)
December 26: Paid biweekly salaries, in the amount of $5,200.
December 27: Paid the account payable to Relocating, Inc., in the amount of $600.
December 28: Declared a dividend of 10 cents per share, payable on January 15, 2012.
December 31: Received a bill from Progress Energy Utilities for the month of December for $700, due on January 12, 2012.
December 31: Equipment rental fees earned during the second half of December amounted to $20,000, $15,600 of which was received in cash from Geller Construction Company and $4,400 in AR for Rocks.

Journalize the following adjustments:

The advance payment of rent on December 1 covered a period of three months.
The annual interest rate on the note payable to LMNOP Rental is 6%.
The rental equipment is being depreciated using the straight line method over a useful life of 8 years; there is no salvage value.
The office supplies on hand at December 31 equal about $600.
As of December 31, six days of rent on the backhoe rented to Rocks Etc. on December 23 has been earned.
During December, the company earned $3,700 of the rental fees paid in advance by Geller Construction, on December 8.
Salaries earned by employees since the last payroll date (December 26) amounted to $1,400 at month end.

Present a trial balance to show the balancing of accounts. (There are a few accounts that will need to be added in order to successfully complete the journal entries and adjustments).

Upon completion of the journal entries and adjustments, review and print a PDF report in the software that will show the activity of the company. Write a summary of 2%u20133 paragraphs explaining how the tasks that you have completed previously (course objectives) impacted your ability to perform these entries.

accounting help please 450613

Aug 29, 2021 | Uncategorized

Fillip Corporation makes 4,800 units of part U13 each year. This part is used in one of the company’s products. The company’s Accounting Department reports the following costs of producing the part at this level of activity:

An outside supplier has offered to make and sell the part to the company for $25.60 each. If this offer is accepted, the supervisor’s salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside supplier’s offer were accepted, only $3,400 of these allocated general overhead costs would be avoided. In addition, the space used to produce part U13 would be used to make more of one of the company’s other products, generating an additional segment margin of $13,800 per year for that product.

financial statements 450617

Aug 29, 2021 | Uncategorized

Financial Statements of a Manufacturing Firm

The following events took place for Air Temp Manufacturing Company during January, the first month of its operations as a producer of digital thermometers:

Purchased $47,300 of materials.

Used $36,400 of direct materials in production.

Incurred $54,400 of direct labor wages.

Incurred $76,600 of factory overhead.

Transferred $127,200 of work in process to finished goods.

Sold goods with a cost of $101,200.

Earned revenues of $227,500.

Incurred $58,200 of selling expense.

Incurred $25,500 of administrative expense.

b. Determine the inventory balances at the end of the first month of operations. (Show the transactions in T accounts for materials, work in process, and finished goods.)

Air Temp Manufacturing Company Inventory Balances

Materials=

Work in process=

Finished goods=

depreciation expense 450621

Aug 29, 2021 | Uncategorized

A firm is trying to determine whether to replace an existing asset. The proposed asset has a purchase price of $50,000 and has installation costs of $3,000. The asset will be depreciated over its five year life using the straight line method. The new asset is expected to increase sales by $17,000 and non depreciation expenses by $2,000 annually over the life of the asset. Due to the increase in sales, the firm expects an increase in working capital during the asset’s life of $1,500, and the firm expects to be able to sell the asset for $6,000 at the end of its life. The existing asset was originally purchased three years ago for $25,000, has a remaining life of five years, and is being depreciated using the straight line method. The expected salvage value at the end of the asset’s life (i.e., five years from now) is $5,000; however, the current sale price of the existing asset is $20,000, and its current book value is $15,625. The firm’s marginal tax rate is 34 percent and its required rate of return is 12 percent.
If the new machine is purchased, depreciation expense will increase or decrease by:

increase $8,000

increase $6,900

Increase $6,300

decrease $5,000

accounting balance sheet income statement and statement of retained earnings 450633

Aug 29, 2021 | Uncategorized

Following is the adjusted trial balance of Post Company. Based on this information prepare a Balance Sheet, Income Statement and Statement of Retained Earnings. Explain the closing entry process and prepare the closing entries in journal form based on the information


POST COMPANY
ADJUSTED TRIAL BALANCE
	Debit	Credit
Cash	80,000
Accounts Receivable	12,000
Prepaid Insurance	2,000
Equipment	4,000
Accumulated Depreciation		100
Supplies	400
Accounts Payable		800
Wages Payable		200
Unearned Revenue		1,200
Contributed Capital		82,400
Retained Earnings		0
Sales		16,000
Gas Expense	200
Supply Expense	400
Insurance Expense	400
Depreciation Expense	100
Wage Expense	200
Dividends	1,000
	100,700	100,700

book and fair values 450636

Aug 29, 2021 | Uncategorized

The following book and fair values were available for Westmont Company as of March 1.

	Book Value			Fair Value
Inventory	$	231,000		$	191,750
Land		822,000			1,119,750
Buildings		2,130,000			2,447,250
Customer relationships		0			867,750
Accounts payable		(104,000	)		(104,000	)
Common stock		(2,000,000	)
Additional paid in capital		(500,000	)
Retained earnings 1/1		(417,500	)
Revenues		(464,500	)
Expenses		303,000

Note: Parentheses indicate a credit balance.

Arturo Company pays $3,780,000 cash and issues 28,700 shares of its $2 par value common stock (fair value of $50 per share) for all of Westmont%u2019s common stock in a merger, after which Westmont will cease to exist as a separate entity. Stock issue costs amount to $32,800 and Arturo pays $47,500 for legal fees to complete the transaction.

Prepare Arturo%u2019s journal entry to record its acquisition of Westmont.

auditing 450647

Aug 29, 2021 | Uncategorized

Following are examples of control deficiencies that may represent significant deficiencies or material weaknesses. For each of the following scenarios, indicate whether the deficiency is a significant deficiency or material weakness. Justify your decision.

a.	During its assessment of ICFR, the management of Lorenz Corporation and its auditors identified the following control deficiencies that individually represent significant deficiencies:

	‘		Inadequate segregation of duties over certain information system access controls.
	‘		Several instances of transactions that were not properly recorded in subsidiary ledgers. While the transactions that weren’t recorded properly were not material, the gross amount of the transactions of that type totaled up to an amount several times materiality.
	‘		A lack of timely reconciliations of the account balances affected by the improperly recorded transactions.

b.	During its assessment of ICFR, management of First Coast BankCorp and its auditors identified the following deficiencies that individually represent significant deficiencies: the design of controls over the estimation of credit losses (a critical accounting estimate); the operating effectiveness of controls for initiating, processing, and reviewing adjustments to the allowance for credit losses; and the operating effectiveness of controls designed to prevent and detect the improper recognition of interest income. In addition, during the past year, First Coast experienced a significant level of growth in the loan balances that were subjected to the contro ls governing credit loss estimation and revenue recognition, and further growth is expected in the upcoming year.

accounting 450657

Aug 29, 2021 | Uncategorized

The following information pertains to Auburn Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.

Assets
Cash and short term investments	$42,526
Accounts receivable (net)	$31,173
Inventory	$26,105
Property, plant and equipment	$299,929
Total Assets	$399,733


Liabilities and Stockholders’ Equity
Current liabilities	$67,659
Long term liabilities	$95,631
Stockholders’ equity common	$236,443
Total Liabilities and stockholders’ equity	$399,733

Income Statement
Sales	$82,274
Cost of goods sold	$37,023
Gross margin	$45,251
Operating expenses	$28,273
Net income	$ 16,978

Number of shares of common stock	5,979
Market price of common stock	$35

What is the rate earned on stockholders’ equity for this company?

Select the correct answer.

12.5%

2.8%

1.4%

7.2%

differen 450659

Aug 29, 2021 | Uncategorized

The following information pertains to Julia Company:

A. Temporary differences for the year 2013 are summarized below:

Expenses deducted in the tax return, but not included in the income statement:

Expenses reported in the income statement but not deducted in the tax return: Warranty expense, 9,000

B. No temporary differences existed at the beginning of 2013

C. Pretax accounting income was $67,000 and taxable income was $8,000 for 2013

D. There were no permanent differences

E. The tax rate is 30%

Required:

Prepare the journal entry to record the tax provision for 2013. Provide supporting computations

topper sports inc produces high quality sports equipment the company s racket divisi 450670

Aug 29, 2021 | Uncategorized

Topper Sports, Inc. produces high quality sports equipment. The company’s Racket Division manufactures three tennis rackets the Student, the Deluxe, and the Pro that are widely used in amateur day. Selected information on the rackets is given below:

Standard

Selling Price per racket: $43.00

Variable Expenses per racket:

Production: $17.20

Selling (5% of selling price): $2.15

Deluxe

Selling Price per Racket: $62.00

Variable Expenses Per Racket:

Production: $21.70

Selling (5% of selling price): $3.10

Pro

Selling Price per Racket: $87.00

Variable Expenses per Racket:

Production: $26.10

Selling (5% of selling price): $4.35

All sales are made through the company’s own retail outlets. The Racket Division has the following fixed costs:

Per Month

Fixed Production Costs: $107,000

Advertising Expense: $108,000

Administrative Salaries: $52,000

Total: $267,000

Sales, in units, over the past two months have been as follows:

Standard (April): 4,000

Deluxe (April): 3,000

Pro (April): 7,000

Total (April): 14,000

Standard (May): 11,000

Deluxe (May): 3,000

Pro (May): 6,000

Total (May): 20,000

a.Prepare contribution format income statements for April. (Round the “Total percent” answers to one decimal place. Input all amounts as positive values except losses which should be indicated by minus sign. Omit the “$” and “%” signs in your response).

accounting 450671

Aug 29, 2021 | Uncategorized

In the following problems, use the net FUTA tax rate of 0.8% on the first $7,000 of taxable wages. SUTA will be paid on the first 8,500 for ER with no limit for the EE.

Niemann Company has a SUTA tax rate for the ER is 7.1% and .03% for the EE. The taxable payroll for the year for FUTA and SUTA is $82,600. Assume that the total payroll for the year is also $82,600.

1. The amount of FUTA tax for the year is (Points : 3)

$660.80
$5,864.60
$5,121.20
$4,460.40

2. The amount of SUTA tax for the ER for the year is (Points : 3)

$660.80
$5,121.20
$5,864.60
$4,460.40

3. The amount of SUTA tax deducted from the EE wages would be: (Points : 3)

$58.65
$33.04
$24.78
$66.08

4. The amount of FUTA tax before the credit is: (Points : 3)

$5,121.20
$4,460.40
$527.00
$459.00

5. The amount of the FUTA tax credit would be: (Points : 3)

$5,121.20
$660.80
$527.00
$4,460.40

auditing 450676

Aug 29, 2021 | Uncategorized

For each of the following scenarios, perform the three steps in the materiality process: (1) determine planning materiality, (2) determine tolerable misstatement, and (3) evaluate the audit findings.

Assume further that the auditor’s firm provides guidance that tolerable misstatement will be set 50% of planning materiality.

Scenario 1:

Murphy & Johnson is a manufacturer of small motors for lawnmowers, tractors, and snowmobiles. The components of its financial statements are (1) net income before taxes = $21 million, (2) total assets = $550 million, and (3) total revenues = $775 million. Murphy & Johnson uses maximum percentage applicable on net income for determining planning materiality.

a.	Determine planning materiality, and tolerable misstatement. Justify your decisions. (Enter your answers in millions, not thousands, of dollars. Round your answers to 3 decimal places. Omit the “$” sign in your response.)


Planning materiality	$
Tolerable misstatement	$

During the course of the audit, Murphy & Johnson’s CPA firm detected two misstatements that aggregated to an overstatement of net income of $1.25 million.

b.	Evaluate the audit findings. Justify your decisions.

Scenario 2:

Delta Investments provides a group of mutual funds for investors. The components of its financial statements are (1) net income before taxes = $40 million, (2) total assets = $4.3 billion, and (3) total revenues = $900 million. Murphy & Johnson uses maximum percentage applicable on total assets for determining planning materiality.

a.	Determine planning materiality, and tolerable misstatement. Justify your decisions. (Enter your answers in millions, not thousands, of dollars. Round your answers to 2 decimal places. Omit the “$” sign in your response.)


Planning materiality	$
Tolerable misstatement	$

During the course of the audit, Delta’s CPA firm detected two misstatements that aggregated to an overstatement of net income of $5.75 million.

b.	Evaluate the audit findings. Justify your decisions.

Scenario 3:

Swell Computers manufactures desktop and laptop computers. The components of the financial statements are: (1) net income before taxes $500,000, (2) total assets = $2.2 billion, and (3) total revenues = $7 billion. Swell Computers uses total assets for determining planning materiality.

a.	Determine planning materiality and tolerable misstatement. Justify your decisions. (Enter your answers in millions, not thousands, of dollars. Round your answers to 1 decimal place. Omit the “$” sign in your response.)


Planning materiality	$
Tolerable misstatement	$

During the course of the audit, Swell’s CPA firm detected one misstatement that resulted in an overstatement of net income by $1.5 million.

b.	Evaluate the audit findings. Justify your decisions.

audit sampling 450677

Aug 29, 2021 | Uncategorized

Following is a set of situations that may or may not involve sampling.

1.	An auditor is examining loan receivables at a local bank. The population of loans contains two strata. One stratum is composed of 25 loans that are each greater than $1 million. The second stratum contains 450 loans that are less than $1 million. The auditor has decided to test all loans greater than $1 million and 15 loans less than $1 million.
2.	Assume the same facts as number 1 except that the auditor decides to apply analytical procedures to the second strata of loans.
3.	An auditor has haphazardly selected 30 sales invoices to be examined for proper pricing of the goods purchased by the customer.
4.	The prepaid insurance account is made up of four policies that total $45,000. The auditor has decided that this account is immaterial and decides that no policies will be examined.

Required:

Indicate which situations involve audit sampling (statistical or nonstatistical) and why.

forest outfitters is a retailer that is preparing its budget for the upcoming fiscal 450694

Aug 29, 2021 | Uncategorized

Forest Outfitters is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows:

	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter
Total cash receipts	$ 340,000	$ 670,000	$ 410,000	$ 470,000
Total cash disbursements	$ 530,000	$ 450,000	$ 430,000	$ 480,000

The company’s beginning cash balance for the upcoming fiscal year will be $50,000. The company requires a minimum cash balance of $30,000 and may borrow any amount needed from a local bank at a quarterly interest rate of 3%. The company may borrow any amount at the beginning of any quarter and may repay its loans, or any part of its loans, at the end of any quarter. Interest payments are due on any principal at the time it is repaid.

Required:

Complete the company’s cash budget for the upcoming fiscal year. (Input all amounts as positive values except cash deficiency, repayments, and interest, which should be indicated by a minus sign. Leave no cells blank be certain to enter “0” wherever required. Omit the “$” sign in your response.)

Forest Outfitters Cash Budget
	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Year
Cash balance, beginning	$	$	$	$	$
Total cash receipts

Total cash available
Less total cash disbursements

Excess (deficiency) of cash available over disbursements

Financing:
Borrowings (at beginning)
Repayments (at ending)
Interest

Total financing

Cash balance, ending	$	$	$	$	$

fresh seasons 450703

Aug 29, 2021 | Uncategorized

Fresh Seasons is a contract manufacturer for Delectable

Dressing Company. Fresh Seasons uses a weighted average process costing system to

account for its salad dressing production. All ingredients are added at the start of the

process. Delectable provides reusable vats to Fresh Seasons for the completed product

to be shipped to Delectable for bottling, so Fresh Seasons incurs no packaging costs.

Production and cost information for Fresh Seasons during April 2013 follow.

Gallons of dressing in beginning WIP Inventory 36,000

Gallons completed during April 242,000

Gallons of dressing in ending WIP Inventory 23,500

Costs of beginning WIP Inventory

Direct material $183,510

Direct labor 98,526

Overhead 78,273

Costs incurred in April

Direct material $1,136,025

Direct labor 451,450

Overhead 723,195

April beginning and ending WIP inventories had the following percentages of completion

for labor and overhead:

April 1 April 30

Direct labor 55% 15%

Overhead 70% 10%

a. How many gallons of dressing ingredients were started in April?

b. What is the total cost of the goods transferred out during April?

c. What is the cost of April’s ending WIP Inventory?

a.		229,500	started in April
			total actual units
			total physical units
			started and completed

b. & c.		2,670,979	total costs to account for

		Physical Units	DM	DL	OH
	Beginning WIP Inventory
	Units started
	Units to account for
	Beginning WIP Inventory (completed)
	Started and completed
	Units completed
	Ending WIP Inventory
	Units accounted for

	Cost Data	Total	DM	DL	OH
	Beginning WIP Inventory
	Current
	Total cost to account for	$	$	$	$
	Divided by EUP
	Cost per EUP


	Cost Assignment
	*Transferred out (24200010.49)**
	Ending WIP Inventory
	DM (23500*4.97)
	DL (3525*2.24)
	OH (2350*3.28)
	Total cost accounted for		$

auditing 450714

Aug 29, 2021 | Uncategorized

Generally Accepted Auditing Standards

John Clinton, owner of Clinton Company, applied for a bank loan and was informed by the banker that audited financial statements of the business h ad to be submitted before the bank could consider the loan application. Clinton then retained Arthur Jones, CPA, to perform an audit. Clinton informed Jones that audited financial statements were required by the bank and that the audit must be completed within three weeks. Clinton also promised to pay Jones a fixed fee plus a bonus if the bank approved the loan. Jones agreed and accepted the engagement.

The first step taken by Jones was to hire two accounting students to conduct the audit. He spend several hours telling them exactly what to do. Jones told the students not to spend time reviewing controls but instead to concentrate on proving the mathematical accuracy of the ledger accounts and summarizing the data in the accounting records that support Clinton Company’s financial statements. The students followed Jones’s instructions and after two weeks gave Jones the financial statements, which did not include any notes. Jones reviewed the statements and prepared an unqualified audit report. The report, however, did not refer to generally accepted accounting principles.

List on the left side the generally accepted auditing standards that were violated by Jones, and indicate how the actions of Jones resulted in a failure to comply with each standard.

Generally Accepted Auditing Standards	Actions by Jones Resulting in Failure to Comply with Generally Accepted Auditing Standards
General Standards
(1) The auditor must have adequate technical training and proficiency to perform the audit.	It was inappropriate for Jones to hire the two students to conduct the audit. The audit must be conducted by persons with proper education and experience in the field of auditing. Although a junior assistant has not completed his formal education, he or she may help in the conduct of the audit as long as there is proper supervision and review.
(2)
(3)
Standards of Field Work
(1)
(2)
(3)
Standard of Reporting
(1)
(2)
(3)
(4)

total number of units 450715

Aug 29, 2021 | Uncategorized

The Geurtz Company uses standard costing. The company makes and sells a single product called a Roff. The following data are for the month of August:

‘	Actual cost of direct material purchased and used: $88,400
‘	Material price variance: $3,400 unfavorable
‘	Total materials variance: $23,900 unfavorable
‘	Standard cost per pound of material: $5
‘	Standard cost per direct labor hour: $5
‘	Actual direct labor hours: 8,100 hours
‘	Labor efficiency variance: $2,500 favorable
‘	Standard number of direct labor hours per unit of Roff: 2 hours
‘	Total labor variance: $1,550 unfavorable

The total number of units of Roff produced during August was:

1 .3,800

2. 4,300

3. 4,100

4. 4,050

accounting 450723

Aug 29, 2021 | Uncategorized

Gorman Construction Co. began operations in 2013. Construction activity for 2013 is shown below. Gorman uses the completed contract method.

		Billings	Collections	Contract Costs	Estimated
	Contract	Through	Through	Incurred Through	Additional Costs
Contract	Price	12/31/13	12/31/13	12/31/13	to Complete
1	$3,200,000	$3,150,000	$2,600,000	$2,150,000	%u2014
2	3,600,000	1,500,000	1,000,000	820,000	$1,880,000
3	3,300,000	1,900,000	1,800,000	2,250,000	1,200,000

Which of the following should be shown on the income statement for 2013 related to Contract 1?

Gross profit, $1,000,000

Gross profit, $1,050,000

Gross profit, $600,000

Gross profit, $450,000

acct 102 help 450458

Aug 29, 2021 | Uncategorized

Data for two projects, having the same useful life follows

Project Flower: initial investment, $90,000; present value of net cash flows, $140,000.

Project Plant: initial investment, $88,000; present value of net cash flows, $148,000.

Using the profitability index method, which of the two projects should be accepted?

Neither project should be accepted.

Either project may be accepted.

Project Plant

Project Flower

determining the optimal product mix with one constrained resource 450481

Aug 29, 2021 | Uncategorized

Determining the Optimal Product Mix with One Constrained Resource

Comfy Fit Company manufactures two types of university sweatshirts, the Swoop and the Rufus, with unit contribution margins of $5 and $15, respectively. Regardless of type, each sweatshirt must be fed through a stitching machine to affix the appropriate university logo. The firm leases seven machines that each provide 1,000 hours of machine time per year. Each Swoop sweatshirt requires 6 minutes of machine time, and each Rufus sweatshirt requires 30 minutes of machine time.

Assume that there are no other constraints.

If required, round your answers to the nearest whole number. If an amount is zero, enter “0”.

1. What is the contribution margin per hour of machine time for each type of sweatshirt?

Swoop	$
Rufus	$

2. What is the optimal mix of sweatshirt?

Swoop	units
Rufus	units

3. What is the total contribution margin earned for the optimal mix?
$

accounting 450483

Aug 29, 2021 | Uncategorized

(Developing responses to assessed risks) Your client, General Television, Inc. manufactures televisions and during the current year acquired Micro Engineering, Inc., which manufactured flat panel plasma screens for computers so that it could compete in the market for flat panel televisions. Following is a list of several risks that have been identified in the audit of this television manufacturer.

General Television has strong internal controls over the existence of inventory. It has a good perpetual inventory system and regularly compares inventory on hand with the perpetual records.
Prices have been changing rapidly in General Television’s marketplace. Although the marketplace is relatively stable for traditional televisions, the prices on flat panel televisions have become much more competitive.
General Television had to pay a premium to acquire Micro Engineering. General Television had independent appraisals of the fair value of assets and has determined that about 35 percent of the purchase price should be allocated to goodwill.

Required

Answer the following questions for the risks described in 1, 2, and 3 above.

Identify the relevant assertion.
Does this assertion represent a significant inherent risk? Explain.
How might you respond to this risk in terms of staffing decisions?
How might you respond to this risk in terms of the nature of audit tests?
How might you respond to this risk in terms of the timing of audit tests?
How might you respond to this risk in terms of the extent of audit tests?

Please make sure that for question in this problem you give case 1 answers 1 through 6, case 2 answers 1 through 6, and case 3 answers 1through 6.

diamond glitter company is in the process of preparing its financial statements for 450490

Aug 29, 2021 | Uncategorized

The Diamond Glitter Company is in the process of preparing its financial statements for 2012. Assume that no entries for depreciation have been recorded in 2012. The following information related to depreciation of fixed assets is provided to you.

1. The company purchased equipment on January 2, 2009, for $165000. At that time, the equipment had an estimated useful life of 7 years with a $25000 salvage value. The equipment is depreciated on a straight line basis. On January 2, 2012, as a result of additional information, the company determined that the equipment has a remaining useful life of 3 years with a $15000 salvage value.

2. During 2012, the company changed from the double declining balance method for its building to the straight line method. The building originally cost $625000. It had a useful life of 10 years and a salvage value of $50000. The following computations present depreciation on both bases for 2010 and 2011.
		2011	2010
	Straight line	$ 57,500	$ 57,500
	Declining balance	$ 92,000	$ 115,000

3. The company purchased a machine on July 1, 2010, at a cost of $450000. The machine has a salvage value of $25000 and a useful life of 10 years. The company’s bookkeeper recorded straight line depreciation in 2010 and 2011 but failed to consider the salvage value.

4. The company has failed to accrue sales commissions payable at the end of each of the last 2 years, as follows.
	December 31, 2011	$ 5,400
	December 31, 2012	$ 4,600

5. In reviewing the December 31, 2011, inventory, the company discovered errors in its inventory taking procedures that have caused inventories for the last 3 years to be incorrect, as follows. The company has already made an entry that established the incorrect December 31, 2012, inventory amount.
	December 31, 2010	Understated	$ 32,000
	December 31, 2011	Understated	$ 51,000
	December 31, 2012	Overstated	$ 9,500

6. At December 31, 2012, the company decided to change to the straight line method depreciation method on its retail display equipment from double declining balance. The equipment had an original cost of $250000 when purchased on January 1, 2011. It has a salvage value of 0 and an 8 year useful life. Depreciation expense recorded prior to 2012 under the double declining balance method was $62500. The company has already recorded 2012 depreciation expense of $46875 using the double declining balance method.

7. Before the current year, the company accounted for its income from long term construction contracts on the completed contract basis. Early this year, the company changed to the percentage of completion basis for accounting purposes but continues to use the completed contract method for tax purposes. Income for the current year has been recorded using the new method. Prior year tax effects must be considered. The following information is available.
		Pretax Income
		Percentage of Completion	Completed Contract
	Prior to 2012	$320,000	$180,000
	2012	$140,000	$120,000
Required:
Prepare the journal entries necessary at December 31, 2012, to record the corrections and changes made to date related to the information provided. The books are still open for 2012. The income tax rate is 35%. The company has not yet recorded its 2012 income tax expense and payable amounts so current year tax effects may be ignored.

managerial accounting 450517

Aug 29, 2021 | Uncategorized

Please dont just write the answee. could you also type how you got it. Thanks!

Sky High Seats manufactures seats for airplanes. The company has the capacity to produce 100,000 seats per year, but is currently producing and selling 75,000 seats per year. The following information relates to current production:

Sale price per unit	$400

Variable costs per unit:
Manufacturing	$220
Marketing and administrative	$50

Total fixed costs:
Manufacturing	$750,000
Marketing and administrative	$200,000

If a special sales order is accepted for 7,000 seats at a price of $350 per unit, and fixed costs remain unchanged, how would operating income be affected? (NOTE: Assume regular sales are not affected by the special order.)

homework question help 450522

Aug 29, 2021 | Uncategorized

E11 9 The following stockholders equity accounts, arranged alphabetically, are in the ledger of Roder Corporation at December 31, 2014.

Prepare a stockholders%u2019 equity section.

Common Stock ($2 stated value)	$1,600,000
Paid in Capital in Excess of Par Value Preferred Stock	45,000
Paid in Capital in Excess of Stated Value Common Stock	1,050,000
Preferred Stock (8%, $100 par, noncumulative)	600,000
Retained Earnings	1,334,000
Treasury Stock (12,000 common shares)	72,000

accounting 450523

Aug 29, 2021 | Uncategorized

E12 6 Understanding CVP relationships [LO 7, 9]

Calculate the missing amounts for each of the following firms: (Do not round your intermediate calculations. Negative amount should be indicated by a minus sign. Round to the nearest whole number for the Units Sold column. For the remaining columns round your answers to 2 decimal places. Omit the “$” sign in your response.)

	Units Sold	Selling Price	Variable Costs Per Unit	Contribution Margin	Fixed Costs	Operating Income (Loss)
Firm A	10,300	$ 27	$	$ 97,400	$ 42,500	$
Firm B	8,000		19		65,200	32,720
Firm C		8.2	4.6	9,600		(6,990)
Firm D	4,700		52	40,090	49,660

accounting 450525

Aug 29, 2021 | Uncategorized

E4 13 This is a partial adjusted trial balance of Barone Company. BARONE COMPANY Adjusted Trial Balance January 31, 2014

Debit credit

Supplies $ 700

Prepaid Insurance 1,560

Salaries and Wages Payable $1,060

Unearned Service Revenue 750

Supplies Expense 950

Insurance Expense 520

Salaries and Wages Expense 1,800

Service Revenue 4,000

Instructions Answer these questions, assuming the year begins January 1. (a) If the amount in Supplies Expense is the January 31 adjusting entry, and $300 of sup plies was purchased in January, what was the balance in Supplies on January 1? (b) If the amount in Insurance Expense is the January 31 adjusting entry, and the original insurance premium was for 1 year, what was the total premium and when was the policy purchased? (c) If $2,500 of salaries was paid in January, what was the balance in Salaries and Wages Payable at December 31, 2013? (d) If $1,800 was received in January for services performed in January, what was the bal ance in Unearned Service Revenue at December 31, 2013? Prepare the closing entries at January 31, 2914… Show all work

auditting 450531

Aug 29, 2021 | Uncategorized

Edwards has decided to use monetary unit sampling in the audit of a client’s accounts receivable balance. Few, if any, misstatements of account balance overstatement are expected.

Required:

b.	Calculate the sample size and the sampling interval using Table 8 5, Edwards should use for the following information: (Use the tables, not ACL, to solve for these problems. Round your interval answers to the nearest dollar amount. Omit the “$” sign in yourresponse.)


Tolerable misstatement	$	15,000
Expected misstatement	$	6,000
Desired confidence level		95	%
Recorded amount of accounts receivable	$	300,000

	Using table 8 5
Sample size
Sampling interval	$

c.

Calculate the UML assuming that the following three misstatements were discovered in an MUS sample using Table 8 5, Table 9 3. (Use the tables, not ACL, to solve for these problems.Do not round intermediate calculations. Round your answers to the nearest dollar amount. Omit the “$” sign in your response.)

Misstatement Number	Book Value		Audit Value
1	$	400	$	320
2		500		0
3		3,000		2,500


UML using the table 8 5	$

accounting 450538

Aug 29, 2021 | Uncategorized

Effie Company uses a periodic inventory system. Details for the inventory account for the month of January, 2013 are as follows:

	Units	Per unit price	Total
Balance, 1/1/13	200	$5.00	$1,000
Purchase, 1/15/13	100	5.30	530
Purchase, 1/28/13	100	5.50	550

An end of the month (1/31/13) inventory showed that 140 units were on hand. If the company uses FIFO and sells the units for $10 each, what is the gross profit for the month?

a. 1220

b. 1282

c. 1838

4. 1900

accounting 450539

Aug 29, 2021 | Uncategorized

Eldridge Company

Balance Sheets

31 Dec

Assets 2009 2008

Cash $29,568 $27,648

Accounts Receivable $38,616 $35,280

Merchandise Inventory $87,750 $74,052

Long term Investments $67,080 $67,680

Machinery $210,600 $174,600

Acculated Depreciation ($40,260) ($341,440)

Total assets $393,354 $341,820

Liabilities

Accounts Payable $78,000 $48,456

Income taxes payable $12,870 $12,240

Bonds Payable $58,500 $79,200

Total Liabilities $149,370 $139,896

Equity

Common Stock $140,400 $48,456

Contributed capital in excess of par $15,600 $12,240

Retained Earnings $87,984 $79,200

Total Equity $243,984 $201,924

Total Liabilities and Equity $393,354 $341,820

Eldridge Company

Income Statement

For year Ended December 31,2009

Sales $288,000

Cost of Goods Sold $97,080

Depreciation Expense $35,280

Other operating Expenses $57,600

Interest Expense $2,400 ($192,360)

Other Earnings

Los on sale of Equipment ($10,080)

Income before taxes $85,560

Income taxes Expense $33,180

Net Income $52,180Please follow the questions, and balance sheet and Income statement are attached.

Additional Information

1. There was no gain or loss on the sales of the long term investments, nor on the bonds retired.

2. Old machinery with an original cost of $45,060 was sold for $2,520 cash.

3. New machinery was purchased for $81,060 cash.

4. Cash dividends of $ 40,320 were paid.

5. Additional shares of stock were issued for cash

Prepare a complete statement of cash flows for calendar year 2009 using the indirect method.

please show work and give a complete answer 450548

Aug 29, 2021 | Uncategorized

Engco, a domestic corporation, produces industrial engines at its U.S. plant for sale in the United States and Canada. Engco also has a plant in Canada that performs the final stages of production with respect to the engines sold in Canada. All of the output of the Canadian plant is sold in Canada, whereas only one third of the output of the U.S. plant is shipped to Canada. The Canadian operation is classifi ed as a branch for U.S. tax purposes. During the current year, Engco%u2019s total sales to Canadian customers were $10 million, and the related cost of goods sold is $7 million. The average value of property, plant, and equipment is $30 million at the U.S. plant, and $5 million at the Canadian plant. Engco sells all goods with title passing at the Canadian plant in the case of Canadian sales and at the U.S. plant in the case of U.S. sales.
1. How much of Engco%u2019s export gross profi t of $3 million is classified as foreign source for U.S. tax purposes?
2. Now assume that the facts are the same as in part (a), except that the Canadian factory is structured as a wholly owned Canadian subsidiary, rather than a branch. Engo%u2019s sales of semi finished engines to the Canadian subsidiary (which still represent one third of its output) were $6 million during the year and the related cost of goods sold was $4 million. The Canadian subsidiary%u2019s total sales of finished engines to Canadian customers (which represents all of its output) was $10 million and the related cost of goods sold is $7 million. The average value of property, plant and equipment is still $30 million at the U.S. plant, and $5 million at the Canadian plant, and Engco sells all goods with title passing at its U.S. plant. How much of Engco%u2019s export gross profit of $2 million is classified as foreign source for U.S. tax purposes?
3. How would your answer (to part b) change if Engco sold its goods with title passing at the customer%u2019s location?

accounting question 450553

Aug 29, 2021 | Uncategorized

An equipment acquisition proposal was being considered by a large health care organization. The array machine will enable the hospital to perform autoimmunity tests (for immunoglobulins G, M, and A and complements C3 and C4) in house rather than sending them to a reference laboratory. Test turnaround time is expected to decrease by 2 days. The array machine costs $50,000, with a useful life of 5 years. The depreciation schedule will be $10,000/year.

The expected volume for tests is one of each of the five autoimmunity tests per day. Having the tests done by the reference laboratory costs the hospital an average of $10/test. The hospital’s average charge to patients is $20/test. If the array machine is acquired and the tests done in house, the costs of reagents would average $2/test.

The array machine can run a maximum of 40 patient samples and perform 20 different tests on each sample every 2 hours. Except in extraordinary circumstances, tests would be run Monday thorough Saturday.

The machine requires approximately 1 hour of technician time (valued at $15/hour) each day to calibrate it, to conduct a test run for control purposes and to perform general maintenance. This is a fixed cost because it does not vary by volume. Technician setup time to run tests is negligible. Beyond the five autoimmunity tests the laboratory wants to perform in house, the machine can also perform apolipoprotein cardiac profiles that are currently done on equipment in the clinical chemistry department. The array machine can provide a quantitative measure and not just the positive or negative indicator that the clinical chemistry department’s current equipment gives.

1. How many autoimmunity tests per year will have to be performed on the array machine to break even?

2. Given the present volume of tests, would there be an annual net contribution and, if so, how much?

3. If half of the patients have Medicare coverage (DRG reimbursement includes all tests), would the laboratory break even on the equipment? If not, should the equipment be acquired anyway?

1 given that blades expects to use the cash flows generated by the thai subsidiary t 450560

Aug 29, 2021 | Uncategorized

1. Given that Blades expects to use the cash flows generated by the Thai subsidiary to pay the interest and principal of the notes, would the effective financing cost of the baht denominated notes be affected by exchange rate movements? Would the effective financing cost of the yen denominated notes be affected by exchange rate movements? How?

2. Construct a spreadsheet to determine the annual effective financing percentage cost of the yen denominated notes issued in each of the three scenarios for the future value of the yen. What is the probability that the financing cost of issuing yen denominated notes is higher than the cost of issuing baht denominated notes?

3. Using a spreadsheet, determine the expected annual effective financing percentage cost of issuing yen denominated notes. How does this expected financing cost compare with the expected financing cost of the baht denominated notes?

4. Based on your answers to the previous questions, do you think Blades should issue yen or baht denominated notes?

5. What is the tradeoff involved?

accounting 450561

Aug 29, 2021 | Uncategorized

An estimate based on an analysis of receivables shows that $722 of accounts receivables are uncollectible. The Allowance for Doubtful Accounts has a debit balance of $121. After preparing the adjusting entry at the end of the year, the balance in the Allowance for Doubtful Accounts is the one listed below.

Select the correct answer.

$722

$121

$843

$601

auditing 450571

Aug 29, 2021 | Uncategorized

Evidence comes in various types and has different degrees of reliability. Following are some statements that compare various types of evidence.

a.	A bank confirmation versus observation of the segregation of duties between cash receipts and recording payment in the accounts receivable subsidiary ledger.
b.	An auditor%u2019s recalculation of depreciation versus examination of raw material requisitions.
c.	A bank statement included in the client%u2019s records versus shipping documents.
d.	Physical inspection of common stock certificates held for investment versus physical examination of inventory components for a personal computer.

Required:

For each situation, indicate whether the first or second type of evidence is more reliable. Provide a rationale for your choice.

missing information and recording events 450576

Aug 29, 2021 | Uncategorized

Exercise 1 9A: Missing information and recording events:

As of 12 31 2013 Post Company had $156,000 cash, notes payable of $85,600, and common stock of $52,400. In 2014 Post earned $36,000 of cash revenu, paid $20,000 for cash expenses and paid $3,000 cash dividend to stockholders.

a. Determine the amount of retained earnings as of 12 31 2013.

B. Create an accounting equation and record the beginning account balances under the appropriate elements.

C. Record the revenue, expense, and dividend events under the appropriate elements of the accounting equations in question B.

D. Prove the equality of the accounting equation as of December 31, 2014.

E. identify the beginning and ending balances in the Cash and Common stock accounts. Explain why the beginning and ending balances in the Cash account are different, but the beginning and ending balances in the common stock account remain the same.

“Need this ASAP….”
Please try to answer within an hour

exercise 12 5 various transactions relating to trading securities lo12 2 450578

Aug 29, 2021 | Uncategorized

Exercise 12 5 Various transactions relating to trading securities [LO12 2]

Rantzow Lear Company buys and sells securities expecting to earn profits on short term differences in price. The company’s fiscal year ends on December 31. The following selected transactions relating to Rantzow Lear’s trading account occurred during December 2013 and the first week of 2014.

2013
Dec. 17	Purchased 105,000 Grocers’ Supply Corporation preferred shares for $367,500.
28	Received cash dividends of $2,200 from the Grocers’ Supply Corporation preferred shares.
31	Recorded any necessary adjusting entry relating to the Grocers’ Supply Corporation preferred shares. The market price of the stock was $4 per share.
2014
Jan. 5	Sold the Grocers’ Supply Corporation preferred shares for $399,000

managerial accounting 450589

Aug 29, 2021 | Uncategorized

Exercise 9 13 Return on Investment (ROI) Relations [LO1]

Provide the missing data in the following table:

	Division
	Fab	Consulting	IT
Sales	$ 720,000	$	$
Net operating income	$ 36,000	$	$ 85,800
Average operating assets	$	$ 123,000	$
Margin	%	4 %	6 %
Turnover		4
Return on investment (ROI)	10 %	%	30 %

managerial accounting 450591

Aug 29, 2021 | Uncategorized

Exercise 9 8 Return on Investment (ROI) and Residual Income Relations [LO1, LO2]

A family friend has asked your help in analyzing the operations of three anonymous companies operating in the same service sector industry. Supply the missing data in the table below: (Negative amounts should be indicated with a minus sign. Do not round immediate calculations, but round your final answers to the nearest whole number.)

	Company
	A	B	C
Sales	$ 340,000	$ 720,000	$ 670,000
Net operating income	$	$ 37,000	$
Average operating assets	$ 163,000	$	$ 145,000
Return on investment (ROI)	25%	19%	%
Minimum required rate of return:
Percentage	15%	%	9%
Dollar amount	$	$ 54,000	$
Residual income	$	$	$ 5,000

accounting cookie cutters creations ccc4 450320

Aug 29, 2021 | Uncategorized

Chapter 4 CCC4

Open your corrected CCC3 file. Complete the required activities for CCC4.

Note that this is a rather difficult problem. You are asked to prepare financial statements and prepare and post closing entries, but you were not given the specific transactions for December. Instead, you are given the Adjusted Trial Balance for Dec. 31. I recommend that you take the balances on the ATB and write them in the correct ledger accounts. Just make a note to yourself in each ledger that this is the “Dec. 31 balance.” Of course, if we were REALLY doing a set of books, we would have posted the entries for Dec. and this wouldn’t be necessary.

Natalie had a very busy December.At the end of the month,after journalizing and posting the December transactions and adjusting entries. Natalie prepared the following adjusted trial balance.

COOKIE CREATIONS
Adjusted Trial Balance
December 31, 2011

	Debit	Credit
Cash	$1,180
Accounts Receivable	875
Supplies	350
Prepaid Insurance	1,210
Equipment	1,200
Accumulated Depreciation Equipment		$ 40
Accounts Payable		75
Salaries Payable		56
Interest Payable		15
Unearned Revenue		300
Notes Payable		2,000
Owner’s Capital		800
Owner’s Drawing	500
Service Revenue		4,515
Salaries and Wages Expense	1,006
Utilities Expense	125
Advertising Expense	165
Supplies Expense	1,025
Depreciation Expense	40
Insurance Expense	110
Interest Expense	15
	$7,801	$7,801

Instructions:

Using the information in the adjusted trial balance, do the following.

Prepare an income statement and a statement of owner%u2019s equity for the 2 months ended December 31, 2009, and a classified balance sheet as at December 31, 2009. The note payable has a stated interest rate of 6%, and the principal and interest are due on November 16, 2011.
Natalie has decided that her year end will be December 31, 2009. Prepare and post closing entries as of December 31, 2009.
Prepare a post closing trial balance.

help 450329

Aug 29, 2021 | Uncategorized

Cholati is a foreign corporation that produces fine chocolates for sale worldwide. Cholati markets it chocolates in the United States through a branch sales office located in New York City. During the current year, Cholati%u2019s effectively connected earnings and profits are $3 million, and its U.S. net equity is $6 million at the beginning of the year, and $4 million at the end of the year. In addition, a review of Cholati%u2019s interest expense account indicates that it paid $440,000 of portfolio interest to an unrelated foreign corporation, $200,000 of interest to a foreign corporation which owns 15% of the combined voting power of Cholati%u2019s stock, and $160,000 of interest to a domestic corporation.

Compute Cholati%u2019s branch profi ts tax, and determine its branch interest withholding tax obligations. Assume that Cholati does not reside in a treaty country.

acct 102 450340

Aug 29, 2021 | Uncategorized

Clemson Co. incurs $700,000 of overhead costs each year in its three main departments, machining ($400,000), inspections ($200,000) and packing ($100,000). The machining department works 4,000 hours per year, there are 600 inspections per year, and the packing department packs 1,000 orders per year. Information about Clemson%u2019s two products is as follows:
Product X Product Y
Machining hours 1,000 3,000
Inspections 100 500
Orders packed 350 650
Direct labor hours 1,700 1,800

If traditional costing based on direct labor hours is used, how much overhead is assigned to Product X this year?

$340,000

$168,334

$242,308

$350,000

accounting 450365

Aug 29, 2021 | Uncategorized

A company is considering replacing old equipment with new equipment. Which of the following is a relevant cost for incremental analysis?

Annual depreciation charge on the old equipment

Estimated annual depreciation of the new equipment

Book value of the old equipment

Cost of the new equipment

Begley, Inc. is contemplating the replacement of an old machine with a new one. The following information has been gathered:

	Old Machine	New Machine
Price	$250,000	$500,000
Accumulated Depreciation	75,000	0
Remaining useful life	10 years	0
Useful life	0	10 years
Annual operating costs	$200,000	$150,500

If the old machine is replaced, it can be sold for $20,000.

The net advantage (disadvantage) of replacing the old machine is

$20,000

$(50,000)

$(5,000)

$15,000

A segment has the following data:

Sales	$700,000
Variable expenses	300,000
Fixed expenses	550,000

What will be the incremental effect on net income if this segment is eliminated, assuming the fixed expenses will be allocated to profitable segments?

Cannot be determined from the data provided.

$400,000 increase

$400,000 decrease

$550,000 decreas

accounting 450381

Aug 29, 2021 | Uncategorized

A company usually determines the amount of supplies used during a period by:

adding the supplies on hand to the balance of the Supplies account.
summing the amount of supplies purchased during the period.
taking the difference between the supplies purchased and the supplies paid for during the period.
taking the difference between the balance of the Supplies account and the cost of supplies on hand.

. The final step in the accounting cycle is to prepare:

closing entries.
financial statements.
a post closing trial balance.
adjusting entries.

nineteen measures of solvency and profitability 450384

Aug 29, 2021 | Uncategorized

The comparative financial statements of Blige Inc. are as follows. The market price of Blige Inc. common stock was $68 on December 31, 2012.

Blige Inc.
Comparative Retained Earnings Statement
For the Years Ended December 31, 2012 and 2011
	2012	2011
Retained earnings, January 1	$2,322,400	$1,952,800
Add net income for year	525,600	400,000
Total	$2,848,000	$2,352,800
Deduct dividends:
On preferred stock	$8,400	$8,400
On common stock	22,000	22,000
Total	$30,400	$30,400
Retained earnings, December 31	$2,817,600	$2,322,400

Blige Inc.
Comparative Income Statement
For the Years Ended December 31, 2012 and 2011
	2012	2011
Sales	$2,965,785	$2,728,500
Sales returns and allowances	14,760	9,590
Net sales	$2,951,025	$2,718,910
Cost of goods sold	1,131,500	1,040,980
Gross profit	$1,819,525	$1,677,930
Selling expenses	$581,740	$727,480
Administrative expenses	495,555	427,250
Total operating expenses	1,077,295	1,154,730
Income from operations	$742,230	$523,200
Other income	39,070	33,400
	$781,300	$556,600
Other expense (interest)	184,000	101,600
Income before income tax	$597,300	$455,000
Income tax expense	71,700	55,000
Net income	$525,600	$400,000

Blige Inc.
Comparative Balance Sheet
December 31, 2012 and 2011
	Dec. 31, 2012	Dec. 31, 2011
Assets
Current assets:
Cash	$593,500	$498,790
Temporary investments	898,280	826,560
Accounts receivable (net)	554,800	518,300
Inventories	408,800	321,200
Prepaid expenses	112,284	99,760
Total current assets	$2,567,664	$2,264,610
Long term investments	1,828,016	981,833
Property, plant, and equipment (net)	2,530,000	2,277,000
Total assets	$6,925,680	$5,523,443
Liabilities
Current liabilities	$778,080	$901,043
Long term liabilities:
Mortgage note payable, 8%, due 2017	$1,030,000	$0
Bonds payable, 8%, due 2021	1,270,000	1,270,000
Total long term liabilities	$2,300,000	$1,270,000
Total liabilities	$3,078,080	$2,171,043
Stockholders’ Equity
Preferred $0.70 stock, $40 par	$480,000	$480,000
Common stock, $10 par	550,000	550,000
Retained earnings	2,817,600	2,322,400
Total stockholders’ equity	$3,847,600	$3,352,400
Total liabilities and stockholders’ equity	$6,925,680	$5,523,443

Instructions:

Determine the following measures for 2012, rounding to one decimal place, except for dollar amounts, which should be rounded to the nearest cent. Assume 365 days a year.

1. Working capital:	$
2. Current ratio:
3. Quick ratio:
4. Accounts receivable turnover:
5. Number of days’ sales in receivables:
6. Inventory turnover:
7. Number of days’ sales in inventory:
8. Ratio of fixed assets to long term liabilities:
9. Ratio of liabilities to stockholders’ equity:
10. Number of times interest charges are earned:
11. Number of times preferred dividends earned:
12. Ratio of net sales to assets:
13. Rate earned on total assets:		%
14. Rate earned on stockholders’ equity:		%
15. Rate earned on common stockholders’ equity:		%
16. Earnings per share on common stock:	$
17. Price earnings ratio:
18. Dividends per share of common stock:	$
19. Dividend yield:		%

activity cost rates 450394

Aug 29, 2021 | Uncategorized

Compute the activity cost rates for materials handling, assembly, and design based on these data:
Materials
Cloth 26,000
Fasteners 4,000
Purchased parts 40,000

Materials handling
Labor 8,000
Equipment depreciation 5,000
Electrical power 2,000
Maintenance 6,000

Assembly
Machine operations 5,000

Design
Labor 5,000
Electrical power 1,000
Overhead 8,000

Output totaled 40,000 units. Each unit requires three machine hours of effort. Materials handling costs are allocated to the products based on direct materials cost. Design costs are allocated based on units produced. Assembly costs are allocated based on 500 machine operator hours. (Hint: activity cost rate = total activity costs/total allocation base. Examples of an allocation base include total dollars of materials, total machine operator hours, or total units of output).

financial accounting for managers 450395

Aug 29, 2021 | Uncategorized

Compute the missing amounts in the following table. ( at the end of 2007, retained earnings had a balance of negative $2086) Comment on the company’s performance over the three year period after calculating the relationship of expenses as a percentage of revenues and net income as a percentage of revenues. Do you agree with the company’s dividend policy? Why?

2006 2007. 2008

Retained earning ( beginning)…………………….$1746.5). $5327.0. $2653.0

Revenues…………………………………………………..4840.5. 5327.0. ?

Expenses…………………………………………………….? 5628.0 5425.0

Dividends…………………………………………………….. 0 ? 17.5

acct 346 450398

Aug 29, 2021 | Uncategorized

Computer Boutique sells computer equipment and home office furniture. Currently, the furniture product line takes up approximately 50% of the company’s retail floor space. The president of Computer Boutique is trying to decide whether the company should continue offering furniture or just concentrate on computer equipment. If furniture is dropped, salaries and other direct fixed costs can be avoided. In addition, sales of computer equipment can increase by 13%. Allocated fixed costs are assigned based on relative sales.

	Computer	Home Office
	Equipment	Furniture		Total
Sales	$1,200,000		$800,000	$2,000,000
Less cost of goods sold	$700,000		$500,000	$1,200,000
Contribution margin	$500,000		$300,000	$800,000
Less direct fixed costs
Salaries	$175,000		$175,000	$350,000
Other	$60,000		$60,000	$120,000
Less allocated fixed costs
Rent	$14,118		$9,882	$24,000
Insurance	$3,529		$2,471	$6,000
Cleaning	$4,117		$2,883	$7,000
President’s salary	$76,470		$53,350	$130,000
Other	$7,058		$4,942	$12,000
Total costs	$340,292		$308,528	$649,000
Net Income	$159,708		($8,528)	$151,180

having problems with differential analysis can you please help 450405

Aug 29, 2021 | Uncategorized

The condensed product line income statement for Porcelain Tableware Company for the month of December is as follows:

	Bowls	Plants	Cups
Sales	$65,000	$89,400	$26,900
Cost of Goods Sold	26,300	32,800	14,800
Gross Profit	$38,700	$56,600	$12,100
Selling and Admin Expenses	29,400	34,900	15,400
Income from Operations	$9,300	$21,700	$(3,300)

Fixed costs are 15% of the cost of goods sold and 40% of the selling and administrative expenses. Porcelain Tableware assumes that fixed costs would not be materially affected if the Cups line were discontinued.

Prepare a differential analysis dated December 31, 2012, to determine if cups should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter zero “0”.

Differential Analysis

Continue Cups (Alt. 1) or Discontinue Cups (Alt. 2)

December 31, 2012

Continue Cups (Alternative 1)

Discontinue Cups (Alternative 2)

Differential Effect on Income (Alternative 2)

Revenues

$ Correct 8 of Item 1

$ Correct 9 of Item 1

$ Correct 10 of Item 1

Costs:

Variable cost of goods sold

Correct 13 of Item 1

Correct 14 of Item 1

Correct 15 of Item 1

Variable selling and admin. expenses

Correct 17 of Item 1

Correct 18 of Item 1

Correct 19 of Item 1

Fixed costs

Correct 21 of Item 1

Correct 22 of Item 1

Correct 23 of Item 1

Income (Loss)

$ Correct 25 of Item 1

$ Correct 26 of Item 1

$ Correct 27 of Item 1

tax planning case 450407

Aug 29, 2021 | Uncategorized

Congress recently enacted an non refundable credit based on the cost of the qualifying alcohol and drug abuse counseling programs provided by and corporate employer to its employees . The credit is limited to 50 % of the total cost of the program .if a corporation elects the credit, none of the program costs are allowed as a deduction. Any credit in excess of current year tax may not be carried back to forward to another year.

A. TMM Corporation spent $ 80,000 for a qualifying counseling program this year .if TMM has $ 500,000 taxable income before considering this expense .should it elect the credit or deduct the program’s cost as an ordinary business expense?

B. Would your answer change if TMM had only $ 70,000 taxable income before consideration of the expense?

comprehensive accounting finance problem 450415

Aug 29, 2021 | Uncategorized

Consider the following information on Wellington Power Co.

Debt: 4,000, 7% semiannual coupon bonds outstanding, $1,000 par value, 18 years to maturity, selling for 102 percent of par; the bonds make semiannual payments.

Preferred Stock: 10,000 outstanding with par value of $100 and a market value of 105 and $10 annual dividend.

Common Stock: 84,000 shares outstanding, selling for $56 per share, the beta is 2.08

The market risk premium is 5.5%, the risk free rate is 3.5% and Wellington’s tax rate is 32%.

Wellington Power Co. is evaluating two mutually exclusive project that is somewhat riskier than the usual project the firm undertakes; management uses the subjective approach and decided to apply an adjustment factor of +2.1% to the cost of capital for both projects.

Project A is a five year project that requires an initial fixed asset investment of $2.4 million. The fixed asset falls into the five year MACRS class. The project is estimated to generate $2,050,000 in annual sales, with costs of $950,000. The project requires an initial investment in net working capital of $285,000 and the fixed asset will have a market value of $225,000 at the end of five years when the project is terminated.

Project B requires an initial fixed asset investment of $1.0 million. The marketing department predicts that sales related to the project will be $920,000 per year for the next five years, after which the market will cease to exist. The machine will be depreciated down to zero over four year using the straight line method (depreciable life 4 years while economic life 5 years). Cost of goods sold and operating expenses related to the project are predicted to be 25 percent of sales. The project will also require an addition to net working capital of $150,000 immediately. The asset is expected to have a market value of $120,000 at the end of five years when the project is terminated.

Use the following rates for 5 year MACRS: 20%, 32%, 19.2%, 11.52%, 11.52%, 5.76%

1) Calculate WACC for the firm

2) What is the appropriate discount rate for project A and project B?

3) Calculate project A’s cash flows for years 0 5

4) Calculate project B’s cash flows for year 0 5

5) Calculate NPV, IRR and PI for project A

6) Calculate NPV, IRR and PI for project B

7) Which project should be accepted if any and why?

8) What is the NPV profile’s crossover rate (incremental IRR)?

9) By just considering the crossover rate, and without recalculating NPV or IRR, which project would you select if the appropriate discount rate for both projects is 8% and why?

please help with budget question 450423

Aug 29, 2021 | Uncategorized

The controller of Dash Shoes Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information:

	March	April	May
Sales	$117,000	$138,000	$197,000
Manufacturing costs	49,000	59,000	71,000
Selling and administrative expenses	34,000	37,000	43,000
Capital expenditures	_	_	47,000

The company expects to sell about 12% of its merchandise for cash. Of sales on account, 60% are expected to be collected in full in the month following the sale and the remainder the following month. Depreciation, insurance, and property tax expense represent $10,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in July, and the annual property taxes are paid in November. Of the remainder of the manufacturing costs, 75% are expected to be paid in the month in which they are incurred and the balance in the following month.

Current assets as of March 1 include cash of $44,000, marketable securities of $63,000, and accounts receivable of $139,600 ($102,000 from February sales and $37,600 from January sales). Sales on account for January and February were $94,000 and $102,000, respectively. Current liabilities as of March 1 include a $59,000, 12%, 90 day note payable due May 20 and $10,000 of accounts payable incurred in February for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. It is expected that $3,500 in dividends will be received in March. An estimated income tax payment of $17,000 will be made in April. Dash Shoes’ regular quarterly dividend of $10,000 is expected to be declared in April and paid in May. Management desires to maintain a minimum cash balance of $34,000.

1. Prepare a monthly cash budget and supporting schedules for March, April, and May. Input all amounts as positive values except overall cash decrease and deficiency which should be indicated with a minus sign. Assume 360 days per year for interest calculations.

Dash Shoes Inc.

Cash Budget

For the Three Months Ending May 31, 2012

March

April

May

Estimated cash receipts from:

Cash sales

$

Collection of accounts receivable

Dividends

Total cash receipts

$

Estimated cash payments for:

Manufacturing costs

$

Selling and administrative expenses

Capital expenditures

Other purposes:

Note payable (including interest)

Income tax

Dividends

Total cash payments

$

Cash increase or (decrease)

$

Cash balance at beginning of month

Cash balance at end of month

$

Minimum cash balance

Excess or (deficiency)

$

2. On the basis of the cash budget prepared in Part 1, what recommendation should be made to the controller?

shown below is a trial balance for cornell products inc on december 31 after adjusti 450430

Aug 29, 2021 | Uncategorized

cornell products

trial balance

December 31.2011

Cash 15,500

Accounts receivable 12,750

office equipment 22,500

Accummulated depreciation 6,000

accounts payable 7,750

capital stock 22,500

retained earnings ****

dividends 7,500

service fees earned 45,500

salaries expense 16,000

advertising expense 3,250

depreciation expense 4,250

81,750 81,750

Refer to the information above. Net income for the period equals:

a.$11,600.

b.$22,500.

c.$36,750.

d.$22,000.

Refer to the information above. After closing the accounts, Retained earnings at December 31 equals:

a.$22,500.

b.$14,500.

c.$22,000.

d.zero.

Refer to the information above. The total debits in the After Closing Trial Balance will equal:

a.$58,250.

b.$31,000.

c.$23,500.

d.$50,750.

net present value and internal rate of return 450431

Aug 29, 2021 | Uncategorized

Cornerstone Exercise 14 25

NPV and IRR, Mutually Exclusive Projects

Follow the format shown in Exhibit 14B 1 and Exhibit 14B 2 as you complete the requirements below.

Hardy Inc. intends to invest in one of two competing types of computer aided manufacturing equipment: CAM X and CAM Y. Both CAM X and CAM Y models have a project life of 10 years. The purchase price of the CAM X model is $3,000,000, and it has a net annual after tax cash inflow of $750,000. The CAM Y model is more expensive, selling for $3,500,000, but it wil produce a net annual after tax cash inflow of $875,000. The cost of capital for the company is 10 percent.

1. Calculate the NPV for each project. Round present value calculations and your final answers to the nearest dollar.

CAM X: $

CAM Y: $

Which model would you recommend?

2. Calculate the IRR for each project.

CAM X:

CAM Y:

Which model would you recommend?

short answer 450437

Aug 29, 2021 | Uncategorized

Cost accountants at Condriac Hospital reported the following information for March 2011 regarding its nursing staff consisting of registered nurses (RNs) and aides:

			Standard Rate	Actual Rate
	Standard Hours	Actual Hours	Per Hour	Per Hour
RNS	8,100	7,130	$25.00	$25.80
Aides	3,900	4,370	$12.00	$12.50

1.What is Condriac%u2019s
labor yield variance for March 2011. In the box below, show and label your computations and clearly label your final answer. Be sure to indicate whether the variance is favorable or unfavorable.

2. What is Condriac%u2019s
labor mix variance for March 2011. In the box below, show and label your computations and clearly label your final answer. Be sure to indicate whether the variance is favorable or unfavorable.

detection risk 450448

Aug 29, 2021 | Uncategorized

T

he CPA firm of Lumley & Lu uses a quantitative approach to implementing the audit risk model. Calculate detection risk for each of the following hypothetical clients. (Omit the “%” sign in your response. Round your final answer to the nearest whole number.)

Client No.	Audit Risk	Risk of Material Misstatement	Detection Risk
1	5%	20%	%
2	5%	50%	%
3	10%	15%	%
4	10%	40%	%

accounting 450450

Aug 29, 2021 | Uncategorized

The Crafter Company had the following assets and liabilities as of December 31, 2012:

ASSETS
Cash	$28,000
Accounts receivable	15,000
Inventory	20,000
Equipment	50,000

LIABILITIES
Current portion of long term debt	10,000
Accounts payable	2,000
Long term debt	25,000

Determine the quick ratio for the end of the year (rounded to one decimal point). Answer

		a5.3
	b	3.6
	c	3.3
	d	2.3

Assuming a 360 day year, proceeds of $48,750 were received from discounting a $50,000, 90 day note at a bank. The discount rate used by the bank in computing the proceeds was Answer

	a	6.25%
	b	10.00%
	c	10.26%
	d	9.75%

Which of the following statements concerning taxation is accurate? Answer

a

Corporations pay federal income taxes but not state income taxes.

b

Corporations pay federal and state income taxes.

c

Only the owners must pay taxes on corporate income.

d

Corporations pay income taxes but their owners do not.

The following totals for the month of April were taken from the payroll register of Magnum Company.

Salaries	$12,000
FICA taxes withheld	550
Income taxes withheld	2,500
Medical insurance deductions	450
Federal Unemployment Taxes	32
State Unemployment Taxes	216

The journal entry to record the monthly payroll on April 30 would include a Answer

a

credit to Salaries Payable for $8,500

b

debit to Salaries Expense for $8,252

c

debit to Salaries Payable for $8,500

d

debit to Salaries Payable for $8,252

acct 203 450457

Aug 29, 2021 | Uncategorized

DATA: Carewood makes an environmentally friendly artificial

Customer Question

DATA: Carewood makes an environmentally friendly artificial fireplace log. You have been asked to prepare the company’s master budget for the first quarter of the year 2008 and have been provided with the following:

a.The 12/31/2007 balance sheet data follows:

ASSETS

Cash $ 4,330
Accounts Receivable8,450
Direct Materials Inventory (2,178 pounds)436
Finished Goods Inventory (1,200 logs) 2,808
Plant and Equipment$220,000
Less Accumulated Depreciation (56,000) 164,000

Total Assets&nbs p;$180,024

LIABILITIES AND STOCKHOLDER’S EQUITY

Accounts Payable&nb sp;$ 1,109
Note Payable&nb sp; 20,000
Total Liabilities ; $ 21,109

Common Stock $100,000
Retained Earnings 58,915 158,915

Total Liabilities and Stockholder’s Equity$180,024

b.Each log requires the following standards for direct material and labor:

%u20223.3 pounds of material mix at $.20 per lb
%u202210 minutes of labor time per unit; direct labor
averages $14.40 per hour

Each finished log requires three minutes of machine time. Variable overhead is applied at the rate of $12.00 per hour of machine time. Annual fixed production overhead is budgeted at $46,800 (see breakdown below).

Salaries&n bsp; $30,000
Insurance& nbsp; 1,800
Fixed portion of utilities6,000
Depreciation&nbs p;9,000

Total ;$46,800

Fixed overhead is incurred evenly throughout the year

c.Expected sales in units for the first five months of 2008 are:

January&nb sp;6,000
February&n bsp;9,000
March ;6,500
April ;5,900
May& nbsp;5,100

Carewood grants no discounts, and all sales are on credit at $6.00 per log. The company’s collection pattern is 80 percent in the month of sale, 15 percent in the month following sale, and 5 percent in the second month following the sale. The Accounts Receivable balance in the balance sheet data represents amounts remaining due from November sales of $33,000 and December sales of $34,000.

d.Carewood completes all production each day. The desired ending balance of Direct Materials Inventory is 10 percent of the amount needed to satisfy the next month’s production for finished goods. The desired ending balance in Finished Goods Inventory is 20 percent of the next month’s sales.

e.Purchases of direct materials are paid 70 percent in the month of purchase and 30 percent in the month following the purchase. No discounts are taken. The note payable has a 12 percent interest rate, and the interest is paid at the end of each month. The $20,000 balance of the principal on the note is due on March 31, 2008.

f.CareWood’s minimum cash balance desired is $4,000. The firm may borrow at the beginning of a month anrepay at the end of the month in $500 increments. ($500,$1000,$1500etc) Interest on these short term loans, if any, is payable monthly at a 14% rate. you may have to borrow money to meet your monthly intereat obligations on any loans outstanding.

g.Selling and Administrative expenses, paid as incurred, run $9,000 per month plus 1 percent of sales. Direct labor and overhead are paid as incurred.

h.The company accrues income taxes at a 40 percent rate. A quarterly tax installment will be paid on April 15, 2008.

REQUIRED:

1.Prepare a sales budget in units and dollars for the first quarter of 2008 (January, February, March)(5 pts.)
2.Prepare a schedule of expected cash collections from Customers for the first quarter of 2008(5 pts.)
3.Prepare a production budget for the first quarter of 2008.(5 pts.)
4.Prepare a direct materials purchases budget for the first quarter of 2008. (10 pts.)
5.Prepare a schedule of cash payments for direct materials for the first quarter of 2008. (10 pts.)
6.Prepare a budgeted schedule of cost of goods manufactured for the first quarter(5 pts.)
7.Prepare a budgeted Income Statement for the first quarter of 2008

8.Prepare a cash budget for the first quarter of 2008.(15 pts.

9.Essay: What types of information do your budgets yield? Is cash flow adequate? Do sales need to be increased, costs reduced? Etc%u2026.. ( 5 pts.)
9.Group Participation (15 pts.

cash flow information direct and indirect methods 450304

Aug 29, 2021 | Uncategorized

Cash flow information: Direct and indirect methods

The comparative year end balance sheets of Sign Graphics, Inc., revealed the following activity in the company’s current accounts:

19X5 19X4 Increase / Decrease)

Current assets

Cash $55,400 $35,200 $20,200

Accounts receivable (net) 83,800 88,000 4,200

Inventory 243,400 233,800 9,600

Prepaid expenses 25,400 24,200 1,200

Current liabilities

Accounts payable $123,600 $140,600 ($17,000)

Taxes payable 43,600 49,200 5,600

Interest payable 9,000 6,400 2,600

Accrued liabilities 38,800 60,400 21,600

Note payable 44,000 ” 44,000

The accounts payable were for the purchase of merchandise. Prepaid expenses and accrued liabilities relate to the firm’s selling and administrative expenses. The company’s condensed income statement follows.

SIGN GRAPHICS, INC.

Income Statement

For the Year Ended December 31, 19X5

Sales $713,800

Less:

Cost of goods sold 323,000

= Gross profit $390,800

Less:

Selling & administrative expenses $186,000

Depreciation expense 17,000

Interest expense 27,000

230,000

$160,800

Add:

Gain on sale of land 21,800

Income before taxes Income taxes $182,600

36,800

Net income $145,800

Other data:

1. Long term investments were purchased for cash at a cost of $74,600.

2. Cash proceeds from the sale of land totaled $76,200.

3. Store equipment of $44,000 was purchased by signing a short term note payable. Also, a $150,000 telecommunications system was acquired by issuing 3,000 shares of preferred stock.

4. A long term note of $49,400 was repaid.

5. Twenty thousand shares of common stock were issued at $5.19 per share.

6. The company paid cash dividends amounting to $128,600.

Instructions:

a. Prepare the operating activities section of the company’s statement of cash flows, assuming use of:

1. The direct method.

2. The indirect method.

b. Prepare the investing and financing activities sections of the statement of cash flows.

tax law complexity 285893

Aug 29, 2021 | Uncategorized

DB ACCT 105 income tax Tax Law complexity Tax law is determined by Congress (Not the IRS). The IRS only enforces the law Congress makes. However, it’s widely known that many Congressman find the tax law to complex and have a CPA prepare their taxes. As you can probably see by now, the tax law IS very complex. With that said, do you think there will someday be a “Flat Tax” of some sort and it would be so easy to figure you taxes that a Cave man could do it?Explain your reasoning.

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DB ACCT 105 income tax Tax Law complexity Tax law is determined by Congress (Not the IRS). The IRS only enforces the law Congress makes. However, it’s widely known that many Congressman find the tax law to complex and have a CPA prepare their taxes. As you can probably see by now, the tax law IS very complex. With that said, do you think there will someday be a “Flat Tax” of some sort and it would be so easy to figure you taxes that a Cave man could do it? Explain your reasoning. Replay about 250 words The book we using for this course Fundamentals of Taxation – Cruz 2013

Attachments:

DB.docx

accounting for debentures how much cash will abc ltd receive upon issuing this deben 285901

Aug 29, 2021 | Uncategorized

n 1st July 2010, ABC Ltd issues $15 million in 20 years’ maturity debentures that pay interest each six months of $600 000. The semi annual interest payments are made on 31st December and 30th June every year. At the time of issuing the securities, the market requires a rate of return of 10%. How much cash will ABC Ltd receive upon issuing this debenture?

By 1st July 2014, the market interest rate for the debenture drops to 6%. At what price will the market value the debenture?

On 1st July 2018, the market interest rate for the debenture is 16%. At what price will the market value of the debenture? What will be the book value of the debenture at 1st July 2018? Assume ABC Ltd will not elect to revalue this debenture to fair value.

If ABC Ltd repurchases, in the open market, 15% of the debenture issue on 1st July 2018 when the interest rate for this debenture is 16%. How much will ABC Ltd pay for the debenture? Record the entry that ABC Ltd will make.

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On 1st July 2010, ABC Ltd issues $15 million in 20 years’ maturity debentures that pay interest each six months of $600 000. The semi annual interest payments are made on 31st December and 30th June every year. At the time of issuing the securities, the market requires a rate of return of 10%. How much cash will ABC Ltd receive upon issuing this debenture? By 1st July 2014, the market interest rate for the debenture drops to 6%. At what price will the market value the debenture? On 1st July 2018, the market interest rate for the debenture is 16%. At what price will the market value of the debenture? What will be the book value of the debenture at 1st July 2018? Assume ABC Ltd will not elect to revalue this debenture to fair value. If ABC Ltd repurchases, in the open market, 15% of the debenture issue on 1st July 2018 when the interest rate for this debenture is 16%. How much will ABC Ltd pay for the debenture? Record the entry that ABC Ltd will make. On 1st July 2010, ABC Ltd issues $15 million in 20 years’ maturity debentures that pay interest each six months of $600 000. The semi annual interest payments are made on 31st December and 30th June every year. At the time of issuing the securities, the market requires a rate of return of 10%. How much cash will ABC Ltd receive upon issuing this debenture? By 1st July 2014, the market interest rate for the debenture drops to 6%. At what price will the market value the debenture? On 1st July 2018, the market interest rate for the debenture is 16%. At what price will the market value of the debenture? What will be the book value of the debenture at 1st July 2018? Assume ABC Ltd will not elect to revalue this debenture to fair value. If ABC Ltd repurchases, in the open market, 15% of the debenture issue on 1st July 2018 when the interest rate for this debenture is 16%. How much will ABC Ltd pay for the debenture? Record the entry that ABC Ltd will make. ??????????????????????????????????????????

Attachments:

On 1st July 2….doc

worley parsons engineering services apple management accounting information for crea 285907

Aug 29, 2021 | Uncategorized

Advanced Management Accounting Week 4 Lecture Textbook reference: Langfield Smith, K., Thorne, H. and Hilton RW (2012), Management Accounting, Information for Creating and Managing Value, 6th Ed., McGraw Hill Australia Pty Ltd, North Ryde NSW Chapter 15 Managing Suppliers and Customers Managing suppliers and customers ? Supply chain management ? Managing suppliers ? Managing inventory ? Managing customers ? Managing time 2 Supply chain management (SCM) ? SCM is the management of key business processes that extend across the supply chain, from the original suppliers to final customers ? The supply chain ? Interlinked customers and suppliers that work together to convert, distribute and sell goods and services among themselves, leading to a specific end product ? SCM can involve managing costs, accelerating time tomarket of new products, creating close relationships with customers and suppliers 3 Supply chain management (SCM) ? Ecommerce—use of electronic transmission media to engage in the buying and selling of goods and services ? B2B—ecommerce activities between two businesses ? Electronic data interchange (EDI) links a firm’s computer system to suppliers/customers to allow electronic purchasing and buying ? Enterprise resource planning (ERP) systems support different functional areas of a business and enable SCM 4 2 Managing suppliers ? Improved supplier relationships can reduce supplier and inventory related costs ? Selecting suppliers ? Based on a range of criteria ? Price, quality, delivery, performance history, capacity, communications systems and geographical location ? Long term supply controls and preferred suppliers 5 Analysing supplier costs ? The total cost of ownership is the total cost of dealing with suppliers, including ? Purchase price ? Costs of purchasing—ordering, receiving and inspection ? Costs of holding inventory ? Costs of poor quality ? Costs of delivery failure 6 Evaluating supplier performance ? Supplier performance index: the ratio of supplier costs to total purchase price ? Measures include ability of supplier to supply at the contract price, material quality, delivery performance, quality of relationships between employees, union and management ? A buyer may also assess their own performance in relation to the management of the supplier 7 8 3 Managing inventory ? Why hold inventory? ? Cope with uncertainties in customer demand and in production processes ? Qualify for quantity discounts ? Avoid future price increases in raw materials ? Avoid the costs of placing numerous small orders ? Conventional approaches to inventory management focus on balancing ? Ordering costs: incremental costs of placing an order ? Carrying costs: the costs of carrying inventory in stock ? Shortage costs (or out of stock costs) 9 Economic order quantity (EOQ) ? The optimum order size for individual inventory items, to minimise the total ordering and carrying costs 10 15 11 Economic order quantity (cont.) Contemporary inventory management: Just in time (JIT) systems ? JIT inventory and production system ? A comprehensive system for controlling the flow of manufacturing in a multi stage production environment ? The underlying philosophy: simplify the production process by removing non value added activities ? JIT can cover all aspects of the production process ? Inventory management is crucial ? Inventory is a major cause of non value added activities and cost

Attachments:

Chapter15.pdf

Chapter16.pdf

pdf056.pdf

1 s2.0 S09255….pdf

prepare journal entries to record each of the december transactions and events for b 285965

Aug 29, 2021 | Uncategorized

After the success of the company’s first two months, Santana Rey continues to operate Business Solutions. (Transactions for the first two months are described in the serial problem ofChapter 2.) The November 30, 2011, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2011) follows.

Business Solutions had the following transactions and events in December 2011.

p. 151

The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company’s first three months:

The December 31 inventory count of computer supplies shows $580 still available.
Three months have expired since the 12 month insurance premium was paid in advance.
As of December 31, Lyn Addie has not been paid for four days of work at $125 per day.
The computer system, acquired on October 1, is expected to have a four year life with no salvage value.
The office equipment, acquired on October 1, is expected to have a five year life with no salvage value.
Three of the four months’ prepaid rent has expired.

Required

Prepare journal entries to record each of the December transactions and events for Business Solutions. Post those entries to the accounts in the ledger.
Prepare adjusting entries to reflectathroughf. Post those entries to the accounts in the ledger.
Prepare an adjusted trial balance as of December 31, 2011.
Prepare an income statement for the three months ended December 31, 2011.
Prepare a statement of retained earnings for the three months ended December 31, 2011.
Prepare a balance sheet as of December 31, 2011.
Record and post the necessary closing entries for Business Solutions.
Prepare a post closing trial balance as of December 31, 2011.

Check

(3) Adjusted trial balance totals, $109,034

(6) Total assets, $83,460

Check

Post closing trial balance totals, $85,110

Attachments:

tarea.docx

compare and contrast job order and process costing systems 286012

Aug 29, 2021 | Uncategorized

1. Compare and contrast job order and process costing systems.

2. What is a “job” as defined in a job order costing system?

3. Can standard costing be used in job order costing? If so, what conditions must exist? If not, explain why.

4. List and explain the six steps of cost assignment when using process costing. How does cost assignment differ between the weighted average and FIFO methods?

5. When is a hybrid costing system appropriate in a manufacturing setting?

6. Consider the following date for a cooking department for the month of February:

Physical Units

Work in process, beginning inventory* 11,000

Started during current period 74,000

To account for 85,000

Good units completed and transferred out during period:

From beginning work in process 11,000

Started and completed 50,000

Good units completed 61,000

Spoiled units 8,000

Work in process, ending inventory~ 16,000

Accounted for 85,000

*Direct material, 100% complete; conversion costs, 25% complete

~Direct material, 100% complete; conversion costs, 75% complete

Inspection occurs when production is 100 percent completed. Normal spoilage is 11 percent of good units completed and transferred out during the current period.

The following cost data are available:

Work in process, beginning inventory:

Direct material $220,000

Conversion costs 30,000 $250,000

Costs added during current period:

Direct material 1,480,000

Conversion costs 942,000

Costs to account for
$2672,000

Required:

Prepare a detailed cost of production report. Use the FIFO method. Distinguish between normal and abnormal spoilage

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1. Compare and contrast job order and process costing systems. 2. What is a “job” as defined in a job order costing system? 3. Can standard costing be used in job order costing? If so, what conditions must exist? If not, explain why. 4. List and explain the six steps of cost assignment when using process costing. How does cost assignment differ between the weighted average and FIFO methods? 5. When is a hybrid costing system appropriate in a manufacturing setting? 6. Consider the following date for a cooking department for the month of February: Physical Units?Work in process, beginning inventory* 11,000 ?Started during current period 74,000?To account for 85,000?Good units completed and transferred out during period:? From beginning work in process 11,000 ? Started and completed 50,000? Good units completed 61,000?Spoiled units 8,000?Work in process, ending inventory~ 16,000?Accounted for 85,000 *Direct material, 100% complete; conversion costs, 25% complete?~Direct material, 100% complete; conversion costs, 75% complete Inspection occurs when production is 100 percent completed. Normal spoilage is 11 percent of good units completed and transferred out during the current period. The following cost data are available: Work in process, beginning inventory:? Direct material $220,000? Conversion costs 30,000 $250,000?Costs added during current period:? Direct material 1,480,000? Conversion costs 942,000?Costs to account for $2672,000 Required: Prepare a detailed cost of production report. Use the FIFO method. Distinguish between normal and abnormal spoilage

Attachments:

assignment ac….docx

my budgeting assignment manufacturing budget analysis 286014

Aug 29, 2021 | Uncategorized

Assignment 2: LASA 2—Manufacturing Budget Analysis

Tom Emory and Jim Morris strolled back to their plant from the administrative offices of Ferguson & Son Manufacturing Company. Tom is manager of the machine shop in the company’s factory; Jim is manager of the equipment maintenance department.

The men had just attended the monthly performance evaluation meeting for plant department heads. These meetings had been held on the third Tuesday of each month since Robert Ferguson, Jr., the president’s son, had become plant manager a year earlier.

As they were walking, Tom Emory spoke: “Boy, I hate those meetings! I never know whether my department’s accounting reports will show good or bad performance. I’m beginning to expect the worst. If the accountants say I saved the company a dollar, I’m called ‘Sir,’ but if I spend even a little too much—boy, do I get in trouble. I don’t know if I can hold on until I retire.”

Tom had just been given the worst evaluation he had ever received in his long career with Ferguson & Son. He was the most respected of the experienced machinists in the company. He had been with the company for many years and was promoted to supervisor of the machine shop when the company expanded and moved to its present location. The president (Robert Ferguson, Sr.) had often stated that the company’s success was due to the high quality work of machinists like Tom. As supervisor, Tom stressed the importance of craftsmanship and told his workers that he wanted no sloppy work coming from his department.

When Robert Ferguson, Jr., became the plant manager, he directed that monthly performance comparisons be made between actual and budgeted costs for each department. The departmental budgets were intended to encourage the supervisors to reduce inefficiencies and to seek cost reduction opportunities. The company controller was instructed to have his staff “tighten” the budget slightly whenever a department attained its budget in a given month; this was done to reinforce the plant manager’s desire to reduce costs. The young plant manager often stressed the importance of continued progress toward attaining the budget; he also made it known that he kept a file of these performance reports for future reference when he succeeded his father.

Tom Emory’s conversation with Jim Morris continued as follows:

Emory: I really don’t understand. We’ve worked so hard to meet the budget, and the minute we do so they tighten it on us. We can’t work any faster and still maintain quality. I think my men are ready to quit trying. Besides, those reports don’t tell the whole story. We always seem to be interrupting the big jobs for all those small rush orders. All that setup and machine adjustment time is killing us. And quite frankly, Jim, you were no help. When our hydraulic press broke down last month, your people were nowhere to be found. We had to take it apart ourselves and got stuck with all that idle time.

Morris: I’m sorry about that, Tom, but you know my department has had trouble making budget, too. We were running well behind at the time of that problem, and if we had spent a day on that old machine, we would never have made it up. Instead, we made the scheduled inspections of the forklift trucks because we knew we could do those in less than the budgeted time.

Emory: Well, Jim, at least you have some options. I’m locked into what the scheduling department assigns to me and you know they’re being harassed by sales for those special orders. Incidentally, why didn’t your report show all the supplies you guys wasted last month when you were working in Bill’s department?

Morris: We’re not out of the woods on that deal yet. We charged the maximum we could to other work and haven’t even reported some of it yet.

Emory: Well, I’m glad you have a way of getting out of the pressure. The accountants seem to know everything that’s happening in my department, sometimes even before I do. I thought all that budget and accounting stuff was supposed to help, but it just gets me into trouble. It’s all a big pain. I’m trying to put out quality work; they’re trying to save pennies.

Review the case. Respond to the following:

Identify the problems that appear to exist in Ferguson & Son Manufacturing Company’s budgetary control system and explain how the problems are likely to reduce the effectiveness of the system. (approximately 1 page)
Explain how Ferguson & Son Manufacturing Company’s budgetary control system could be revised to improve its effectiveness. (approximately 1–2 pages)
Explain how the use of an activity based costing system could change the results of the budget, if utilized. (approximately 1 page)
As stated in the case, many employees have “quit trying” and have altered behavior on the job. Provide specific ways for how you would use a budget to change employee behavior and align goals in the organization. Explain how goal alignment can improve profitability and overall return to the shareholders of the company. (approximately 1 page)
Synthesize data to explain the concept of ROI and describe how the use of an activity based costing system can improve the company’s ROI and the potential impact on free cash flow. (approximately 1 page)

Write a 5–6 page report in Word format. Apply APA standards to citation of sources

Attachments:

Moidule 6 Ass….docx

tom emory and jim morris strolled back to their plant from the a 286019

Aug 29, 2021 | Uncategorized

Tom Emory and Jim Morris strolled back to their plant from the administrative offices of Ferguson & Son Manufacturing Company. Tom is manager of the machine shop in the company’s factory; Jim is manager of the equipment maintenance department.

The men had just attended the monthly performance evaluation meeting for plant department heads. These meetings had been held on the third Tuesday of each month since Robert Ferguson, Jr., the president’s son, had become plant manager a year earlier.

As they were walking, Tom Emory spoke: “Boy, I hate those meetings! I never know whether my department’s accounting reports will show good or bad performance. I’m beginning to expect the worst. If the accountants say I saved the company a dollar, I’m called ‘Sir,’ but if I spend even a little too much—boy, do I get in trouble. I don’t know if I can hold on until I retire.”

Tom had just been given the worst evaluation he had ever received in his long career with Ferguson & Son. He was the most respected of the experienced machinists in the company. He had been with the company for many years and was promoted to supervisor of the machine shop when the company expanded and moved to its present location. The president (Robert Ferguson, Sr.) had often stated that the company’s success was due to the high quality work of machinists like Tom. As supervisor, Tom stressed the importance of craftsmanship and told his workers that he wanted no sloppy work coming from his department.

When Robert Ferguson, Jr., became the plant manager, he directed that monthly performance comparisons be made between actual and budgeted costs for each department. The departmental budgets were intended to encourage the supervisors to reduce inefficiencies and to seek cost reduction opportunities. The company controller was instructed to have his staff “tighten” the budget slightly whenever a department attained its budget in a given month; this was done to reinforce the plant manager’s desire to reduce costs. The young plant manager often stressed the importance of continued progress toward attaining the budget; he also made it known that he kept a file of these performance reports for future reference when he succeeded his father.

Tom Emory’s conversation with Jim Morris continued as follows:

Emory: I really don’t understand. We’ve worked so hard to meet the budget, and the minute we do so they tighten it on us. We can’t work any faster and still maintain quality. I think my men are ready to quit trying. Besides, those reports don’t tell the whole story. We always seem to be interrupting the big jobs for all those small rush orders. All that setup and machine adjustment time is killing us. And quite frankly, Jim, you were no help. When our hydraulic press broke down last month, your people were nowhere to be found. We had to take it apart ourselves and got stuck with all that idle time.

Morris: I’m sorry about that, Tom, but you know my department has had trouble making budget, too. We were running well behind at the time of that problem, and if we had spent a day on that old machine, we would never have made it up. Instead, we made the scheduled inspections of the forklift trucks because we knew we could do those in less than the budgeted time.

Emory: Well, Jim, at least you have some options. I’m locked into what the scheduling department assigns to me and you know they’re being harassed by sales for those special orders. Incidentally, why didn’t your report show all the supplies you guys wasted last month when you were working in Bill’s department?

Morris: We’re not out of the woods on that deal yet. We charged the maximum we could to other work and haven’t even reported some of it yet.

Emory: Well, I’m glad you have a way of getting out of the pressure. The accountants seem to know everything that’s happening in my department, sometimes even before I do. I thought all that budget and accounting stuff was supposed to help, but it just gets me into trouble. It’s all a big pain. I’m trying to put out quality work; they’re trying to save pennies.

Review the case. Respond to the following:

Identify the problems that appear to exist in Ferguson & Son Manufacturing Company’s budgetary control system and explain how the problems are likely to reduce the effectiveness of the system. (approximately 1 page)
Explain how Ferguson & Son Manufacturing Company’s budgetary control system could be revised to improve its effectiveness. (approximately 1–2 pages)
Explain how the use of an activity based costing system could change the results of the budget, if utilized. (approximately 1 page)
As stated in the case, many employees have “quit trying” and have altered behavior on the job. Provide specific ways for how you would use a budget to change employee behavior and align goals in the organization. Explain how goal alignment can improve profitability and overall return to the shareholders of the company. (approximately 1 page)
Synthesize data to explain the concept of ROI and describe how the use of an activity based costing system can improve the company’s ROI and the potential impact on free cash flow. (approximately 1 page)

Write a 5–6 page report in Word format. Apply APA standards to citation of sources

Attachments:

Moidule 6 Ass….docx

the numbers or the language of business as warren buffett has said 286043

Aug 29, 2021 | Uncategorized

Project – Financial Statement Preparation

“The numbers” (or, the “language of business”, as Warren Buffett has said) is usually a great place to start in analyzing an enterprise and making prudent business decisions. So … as background for the Group Project Situational Analysis and Report you will be preparing, you are required to create a properly classified Balance Sheet, Income Statement, Cash Flows Statement, and Ratio Analysis Statement from information provided to you.

The information you need is in the file under “Project”. The file includes a Data worksheet with a complete listing of accounts and balances in alphabetical order for EcoSystems Industries and worksheet templates for a Balance Sheet, Income Statement, Cash Flows Statement, and Ratios. The templates have been prepared for the Balance Sheet and Income Statement such that you need only copy/paste from the Data worksheet into the appropriate position on those financial statements and then determine the appropriate sub total and total amounts. Templates have also been prepared for the Cash Flows Statement and for Ratio Analysis but the nature of those items do not as easily lend themselves to simple “copy/paste” functionality. For the Cash Flows and Ratios worksheets, and for that matter also for the Balance Sheet and Income Statement if you prefer, feel free to either manually enter your answers and supporting computations into Excel or print the template worksheets and write your answers/supporting computations on the printed paper. Do whatever is easiest for you. Attach additional sheets if necessary. The formulae for five of the six Ratios requested are identified on a supplemental “Ratios” file. The only ratio not included is the Gross Profit ratio, which is computed as Gross Profit divided by Net Sales.

Project – Situational Analysis and Report

You are the CFO (Chief Financial Officer) for SciTech Industries, a company which designs, manufactures, and sells research instrumentation worldwide. SciTech sells direct to the customer in the United States, but utilizes a Distributor network to sell instruments internationally. The research instruments are expensive (up to $75,000 each) and, therefore, purchase decisions by the end user are not taken lightly. Distributors are independent companies who buy from you (SciTech) at a discounted sales price and then sell to their customers at whatever price they choose. With occasional assistance (financial and otherwise) and advice from you, Distributors perform their own marketing and sales efforts, and also perform equipment installation, repairs, training, and other service functions for your equipment which they have sold in their territory. It is a very costly and time consuming process for you to first identify appropriate Distributors and then to maintain that ongoing relationship. Distributors, as independent entities, also sell other companies’ products. To your knowledge, none of your Distributors sell any of your competitors’ products.

Your sales terms to Distributors are 2/20, n/60. In the process of monitoring payment activity for all Distributors you have noticed that your Distributor in Italy, EcoSystems Industries, over the past six months has not only neglected to take advantage of your discount payment terms, but has progressively fallen further behind in payments for the full invoice price, to the point where payments are now typically 10 days past the 60 day due date.

EcoSystems is a family owned and operated Company with 30 employees, and has been your Italian Distributor for 15 years. EcoSystems has been a cooperative “business partner”, and you have generally been pleased with their performance in selling and servicing your products in their territory over the years. Feedback you receive on occasion from their customers is usually positive, and you receive very few complaints. EcoSystems payment terms offered to its customers are net/45 days (i.e. no early payment discount is offered), and you (SciTech) represent approximately 40% of EcoSystems annual Sales. You have expressed your concern to EcoSystems about the trend in payment history of their account with you. At your request, EcoSystems has provided financial information (represented by the financial statements you have already prepared), and Ecosystems is very willing to answer any questions you might have.

Required:

In a double spaced, 2 to 3 page narrative report (i.e. not including any exhibits you wish to attach), address the questions below and any other considerations which come to mind. As additional information, EcoSystems ratios for prior years are shown in the following table:

	2013	2012	2011

Current Ratio	??	2.6 to 1	2.8 to 1

Accounts Rec. Turnover	??	39 days	33 days

Inventory Turnover	??	55 days	52 days

Gross Profit on Sales	??	44.2%	44.6%

Profit Margin on Sales	??	3.2%	5.3%

Rate of Return on Assets	??	9.9%	10.3%

Your score will be based on your situational analysis, and on the wording/grammar, “flow”, and general communication aspects of your report. Provide your thoughts and the decision you might be leaning toward lacking any additional information and answers to your questions, but there is no right or wrong answer to this .

What are your thoughts as to the financial stability of EcoSystems? What positive aspects of the financial statements and ratios strike you and what “red flags” of concern have drawn your attention? If you had the opportunity to dialogue and interact with the owners of EcoSystems, what questions would you have concerning their operation? What aspects of your financial analysis are in need of answers and/or further explanation?

SciTech reviews, modifies as appropriate, and renews Distributor agreements annually. The Ecosystems agreement is up for renewal in three months, so you have the opportunity to terminate this Distributor relationship and locate another Italian Distributor, or sell your instruments (and service and support) direct from your offices in the U.S., or not sell into Italy at all. What factors, financial and also non financial, are worthy of consideration in deciding the best future course of action?

Attachments:

Instructions…..docx

EcoSystem Ind….xlsx

Ratios Kies….pdf

recommendations for a cost system 286093

Aug 29, 2021 | Uncategorized

Recommendations for a cost system APEX Company John Maxwell has just gone public and expanded his container business.

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APEX Company John Maxwell has just gone public and expanded his container business. As a creative and skilled engineer, John develops technologically advanced machinery and moulds, which provide APEX with a competitive advantage. Above aver?age profits come from the technological advan?tages, but only temporarily as competitor imitation takes between six months and one year. John has two tactics for addressing this tech?nology copying. First, he plans and works towards continuously introducing technological improve?ments in processes and products. For example, there is an ongoing goal for production costs to decrease 8 percent a year. Second, APEX stresses new products. For example, there is a policy that 25 percent of the sales each year must come from products introduced in the past five years. APEX is in the plastic products industry, specifically in the rigid packaging sector. Its products include pop bottles, cosmetic jars, beverage cases, dairy cups and tubs, food trays, pails, and oil containers. In the industry, there are constant modifications and improvements in machinery and processes. Technology is becoming an increasingly important competitive factor in productivity as are product quality and perfor?mance. The industry is being pressed to increase the use of higher performance polymer materials, instrumentation, controls and automated materials handling techniques in its processing operations. While these technologies continue to be generally available, they are more demanding in their imple?mentation, and operation and maintenance, reflect?ing a greater need for higher levels of labour and management skills. Such skills are generally scarce. This is not so with APEX. APEX is one of the few Cana?dian organizations that have developed extensive research and development capabilities. The Cana?dian market was not large enough. However, the free trade agreement with United States, and the reduction in the tariff barrier that protected Canadian rigid…

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will the elimination of non value added activities allow readersnet com 286112

Aug 29, 2021 | Uncategorized

Precision Lens Company manufactures sophisticated lenses and mirrors used in large optical telescopes. The company is now preparing its annual profit plan. As part of its analysis of the profitability of individual products, the controllable estimates the amount of overhead that should be allocated to the individual product lines from the following information.


Units produced
Material moves per product line
Direct labor hours per unit

The total budgeted material handling cost for the year is $90,000.

1. Under a costing system that allocates overhead on the basis of direct labor hours, the material handling costs allocated to one mirror would be what amount?
2. Answer the same question as in requirement (1), but for lenses.
3. Under activity based costing (ABC), the material handling costs allocated to one mirror would be what amount? The cost driver for the material handling activity is the number of material moves.
4. Answer the same question as in requirement (c) above, but for one lens instead of one mirror.
5. Why is the cost allocated in (c) & (d) differ from cost allocated in (a) & (b)?

Clark &Schiffer LLP perform activities related to e commerce consulting and information systems in Vancouver, British Columbia. The firm, which bills $140 per hour for services performed, is in a very tight local labor market and is having difficulty finding quality help for its overworked professional staff. The cost per hour for professional staff time is $50. Selected information follow:

Billable hours to clients for the year totaled 6,000, consisting of: information systems services, 3,600; e commerce consulting, 2,400.
Administrative cost of $381,760 was (and continues to be) allocated to both services based on billable hours. These costs consist of staff support, $207,000; in house computing, $145,000; and miscellaneous office charges, $29,760.
A recent analysis of staff support costs found a correlation with the number of clients served. In house computing and miscellaneous office charges varied directly with the number of computer hours logged and number of client transactions, respectively. A tabulation revealed the following data:

	E commerce consulting	Information systems services
Number of clients
Number of computer hours
Number of client transactions

Required:

Activity based costing (ABC) is said to result in improved costing accuracy when compared with traditional costing procedures. Briefly (use no more than half a page) explain how this improved accuracy is attained.
Assume that the firm uses traditional costing procedures, allocating total costs on the basis of billable hours. Determine the profitability of the firm’s e commerce and information systems activities, expressing your answer both in dollars and as a percentage of activity revenue.
Repeat requirement (b), using activity based costing.
Stephen Shiffer, one of the firm’s partners, doesn’t care where his professionals spend their time because, as he notes, “many clients have come to expect both services and we need both to stay in business. Also, information systems and e commerce professionals are paid the same hourly rate”. Should Shiffer’s attitude change? Explain.
Is an aggressive expansion of either service currently desirable? Briefly discuss.

ReadersNet.Com sells books and software over the Internet. A recent article in a trade journal has caught the attention of management, given that the company has experienced soaring inventory handling costs. The article noted that similar firms have purchasing, warehousing, and distribution costs that average 13 percent of sales, which is attractive when compared against ReadersNet.Com’s results for the past year. The following information is available:

	Cost Driver	Cost Driver Quantity	Percent of Cost Driver Activity for Books	Percent of cost driver activity for Software
Incoming receipts ($600,000)	Number of purchase orders
Warehousing ($720,000)	Number of inventory moves
Outgoing shipments	Number of shipments

Book sales totaled $7,800,000 and software sales totaled $5,200,000. A review of the company’s activities found various inefficiencies with respect to the warehousing of books and outgoing shipments of software. These inefficiencies resulted in an extra 550 moves and 250 shipments, respectively.

What is activity based management? What is a non value added activity?
How much did non value added activities cost ReadersNet.Com this past year?
What could be the possible reasons that may have resulted innon value added activities for ReadersNet.Com? Please be brief (No more than one paragraph)
Will the elimination of non value added activities allow ReadersNet.Com to achieve a13% cost percentage for each of the product line? Show calculations.
Do either of the two product lines require additional cost cutting to achieve the target cost percentage? If so, how much additional cost cutting is needed?

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https files transtutors com cdn uploadassignments 286119 1 c3 66 pdf 286119

Aug 29, 2021 | Uncategorized

I have an assignment that I need major help with. At this moment, I am desperate. It is filling out an1120 form. I could use a lot of help at this moment. I can pay any price. Can you get back to me as soon as you can? I look forward to hearing from you. This is really urgent. The assignment is due April 2nd to the 5th, although I would like to have it buy Wednesday or Thursday the latest.As I stated in the assignment is filling out a 1120 form. The problem comes from my textbook, which I also attached. Project is found in Problem C:3 66 on pages 3 66 through 3 68. Both documents are attached. Please help me. You are my only hope at this moment. I look forward to hearing from you very soon.Kelizma M

https://files.transtutors.com/cdn/uploadassignments/286119_1_c3 66.pdf

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3 CHAPTER THE CORPORATE INCOME TAX LEARNING OBJECTIVES After studying this chapter, you should be able to 1 Apply the requirements for selecting tax years and accounting methods ? to various types of C corporations 2 Compute a corporation’s taxable income ? 3 Compute a corporation’s income tax liability ? 4 Understand what a controlled group is and the tax consequences of ? being a controlled group 5 Understand how compensation planning can reduce taxes for ? corporations and their shareholders 6 Determine the requirements for paying corporate income taxes and ? filing a corporate tax return 7 Determine the financial statement implications of federal income taxes ? 3 1 Prentice Hall’s Federal Taxation 2012 Corporations, Partnerships, Estates & Trusts, Twenty Fifth Edition, by Kenneth E. Anderson, Thomas R. Pope, John L. Kramer. Published by Prentice Hall. Copyright © 2012 by Pearson Education, Inc. ISBN 1 256 64795 0ISBN 1 256 64795 0 3 2 Corporations ? Chapter 3 CHAPTER OUTLINE A corporation is a separate taxpaying entity that must file an annual tax return even if it has no income or loss for the year. This chapter covers the tax rules for domestic corpora Corporate Elections…3 2 tions (i.e., corporations incorporated in one of the 50 states or under federal law) and General Formula for Determining 1 the Corporate Tax Liability…3 5 other entities taxed as domestic corporations under the check the box regulations. It Computing a Corporation’s explains the rules for determining a corporation’s taxable income, loss, and tax liability Taxable Income…3 6 and for filing corporate tax returns. See Table C:3 1 for the general formula for determin Computing a Corporation’s Income Tax Liability…3 22 ing the corporate tax liability. It also discusses the financial implications of federal income Controlled Groups of taxes. Some of these implications appear briefly in the Book to Tax Accounting Corporations…3 24 Comparisons, and a more detailed discussion…

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goodman barnes kim was created from the merger of three companies ten years ago good 286132

Aug 29, 2021 | Uncategorized

Charles Plant Goodman Barnes & Kim was created from the merger of three companies ten years ago. Goodman was the king of the toilet industry in Canada; Barnes specialized in sinks; Kim was dominant in the bathtub area. The fastest growing area of the business is sinks, which grew revenue by 20 percent in 2005. Toilets grew W percent that year, whereas bathtubs fell by 5 percent. The company’s strategy had been to maximize annual profits. It is owned by the descendants of the founders, who rely on high annual dividends to support their respective lifestyles.

nnnc e:nnar:eal crarement for the company.

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7 Plant Charles Kim sinks; in GoodmanBarnes&Kimwascreatedfromthemergerofthreecompaniestenyearsago. specialized Barnes in canada; ind,stry toiiet of the king the which was is sinks’ Goodman business or the nr.u r”r,.*’g.Jii* The area. rritnt”r, in the bathtubs dominant was id ry::::Y,””t’whereas git* 2005′ f

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Case Study Re….doc

tribalance 286185

Aug 29, 2021 | Uncategorized

Problem 3 3A

Minor Advertising Agency was founded by Brandon Minor in January of 2011. Presented below are both the adjusted and unadjusted trial balances as of December 31, 2012.

MINOR ADVERTISING AGENCY
Trial Balance
December 31, 2012

Unadjusted

Adjusted

Dr.

Cr.

Dr.

Cr.

Cash

$ 11,000

Accounts Receivable

20,000

21,500

Supplies

8,600

4,800

Prepaid Insurance

3,350

2,500

Equipment

60,000

Accumulated Depreciation—Equipment

$ 28,000

$ 34,000

Accounts Payable

5,000

Interest Payable

0

150

Notes Payable

5,000

Unearned Service Revenue

7,200

5,900

Salaries and Wages Payable

0

2,100

Owner’s Capital

25,500

Owner’s Drawings

12,000

Service Revenue

58,600

61,400

Salaries and Wages Expense

10,000

12,100

Insurance Expense

850

Interest Expense

350

500

Depreciation Expense

6,000

Supplies Expense

3,800

Rent Expense

4,000

$129,300

$139,050

(a)

Journalize the annual adjusting entries that were made. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Date

Account Titles and Explanation

Debit

Credit

Dec. 31

(To record accrued revenue.)

Dec. 31

(To record revenue earned.)

Dec. 31

(To record supplies used.)

Dec. 31

(To record depreciation.)

Dec. 31

(To record interest.)

Dec. 31

(To record expired insurance.)

Dec. 31

(To record accrued salaries.)

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(b1)

The parts of this question must be completed in order. This part will be available when you complete the part above.

(b2)

The parts of this question must be completed in order. This part will be available when you complete the part above.

(b3)

The parts of this question must be completed in order. This part will be available when you complete the part above.

(c)

The parts of this question must be completed in order. This part will be available when you complete the part above.

Problem 3 3A

Minor Advertising Agency was founded by Brandon Minor in January of 2011. Presented below are both the adjusted and unadjusted trial balances as of December 31, 2012.

MINOR ADVERTISING AGENCY
Trial Balance
December 31, 2012

Unadjusted

Adjusted

Dr.

Cr.

Dr.

Cr.

Cash

$ 11,000

Accounts Receivable

20,000

21,500

Supplies

8,600

4,800

Prepaid Insurance

3,350

2,500

Equipment

60,000

Accumulated Depreciation—Equipment

$ 28,000

$ 34,000

Accounts Payable

5,000

Interest Payable

0

150

Notes Payable

5,000

Unearned Service Revenue

7,200

5,900

Salaries and Wages Payable

0

2,100

Owner’s Capital

25,500

Owner’s Drawings

12,000

Service Revenue

58,600

61,400

Salaries and Wages Expense

10,000

12,100

Insurance Expense

850

Interest Expense

350

500

Depreciation Expense

6,000

Supplies Expense

3,800

Rent Expense

4,000

$129,300

$139,050

(a)

Journalize the annual adjusting entries that were made. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Date

Account Titles and Explanation

Debit

Credit

Dec. 31

(To record accrued revenue.)

Dec. 31

(To record revenue earned.)

Dec. 31

(To record supplies used.)

Dec. 31

(To record depreciation.)

Dec. 31

(To record interest.)

Dec. 31

(To record expired insurance.)

Dec. 31

(To record accrued salaries.)

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(b1)

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(b2)

The parts of this question must be completed in order. This part will be available when you complete the part above.

(b3)

The parts of this question must be completed in order. This part will be available when you complete the part above.

(c)

The parts of this question must be completed in order. This part will be available when you complete the part above.

assignment brief as part of the formal assessment for the master of business adminis 286260

Aug 29, 2021 | Uncategorized

Assignment Brief As part of the formal assessment for the Master of Business Administration you are required to submit a Performance Management assignment. Please refer to your Student Handbook for full details of the programme assessment scheme and general information on preparing and submitting assignments. Learning Outcomes After completing the module the student should be able to: 1. Critically analyse, evaluate and apply a range of strategic planning models. 2. Calculate, interpret and critique a range of financial strategic performance measures such as Return on Investment (ROI), Residual Income (RI) and Economic Value Added (EVA). 3. Use, problem solve and appraise models for the prediction of potential business failure. 4. Critically evaluate the use of non financial and multidimensional models of performance management. Case Background You are employed as a management accountant within JH Alarms plc. The company began in the South of England 19 years ago with the entrepreneurial intuition of John Harris. He began the business by contracting to change fire alarms in large stocks of social housing. After several years of working in such a manner he began to acquire the alarms himself, from a Far Eastern supplier, prior to fitting them. This business expanded rapidly over the years, eventually becoming nationwide, and after recourse to the financial markets for debt and equity finance the company began to manufacture its own fire and burglar alarms within a modern factory environment in the UK. John Harris, now the Chairman and CEO, and his family still own 15% of the share capital of the business. To a certain extent, although a plc, John Harris still runs the company as a personal fiefdom. He realises that constant innovation is vital within the burglar alarm market, in particular, and as a result has pushed through ever growing levels of debt financing. However, there is an uneasy feeling among several senior managers and although they are reluctant to challenge John Harris, directly,(although a couple have recently resigned) they feel that the company is growing out of control and they are concerned with the share price performance in particular. Task 1 You are approached by your manager, Mike Seenitall, who says, “I have recently been on a two day workshop concerning corporate performance management and itseems to me that we are too reliant on traditional financial performance measurement. I would like you to look into this for me.” As part of your initial research you come across some research by Gosselin (2005) who, when undertaking a study of Canadian manufacturing firms stated that, “The results show that manufacturing firms continue to use financial performance measures. Despite the recommendations from experts and academics, the firms that implement a balanced scorecard or integrated [multidimensional] performance measurement system is low (p419)” You are required to prepare a report for Mike Seenitall which considers: I. The problematic issue of an over reliance on financial performance management. (20 marks) II. The possible benefits that JH Alarms may be forsaking by not utilising some type of integrated (multidimensional) scorecard for performance management. (20 marks) (Total 40 marks) Task 2 Whilst completing the above work Mike Seenitall approaches you with another problem and says, “It may be worse than I expected, profitability has fallen to such an extent over the last three years that I am beginning to wonder if the company will survive. The market seems to reflect this as the share price also seems to be suffering at the moment.” As you are completing an MBA you are aware of models that can be used to predict corporate failure and as a result gather the following information: Summary Income Statements 2009 2010 2011 £m £m £m Revenue 973 1,040 1,278 Operating Costs 769 853 1,149 Operating Profit 204 187 129 Interest 23 49 63 Profit before tax 181 138 66 Tax 58 44 21 Profit for period 123 94 45Statements of Financial Position 2009 2101 2011 £m £m £m Assets Non current assets 747 1,185 1,410 Current Assets 156 191 229 903 1,376 1,639 Equity and Liabilities Share Capital 153 153 153 Retained Earnings 136 230 275 Long term borrowings 310 661 841 Current Liabilities 304 332 370 903 1376 1639 The average share price over the last three accounting years has been as follows: 2009 £1.04 2010 £1.11 2010 £0.89 There are 450 million shares in issue. A relevant Z score model for the industry sector is ? Z = 1.2X1 + 1.4X2 + 3.3X3 + 0.6X4 + X5 where: ? X1 = working capital/total assets ? X2 = accumulated retained earnings/total assets ? X3 = earnings before interest and tax/total assets ? X4 = market value of equity/ total long term debt ? X5= revenue/total Assets In turn, you decide to apply the following parameters for analysing your calculations: ? Companies with a ‘Z’ score of below 1.81 are in danger and possibly heading towards bankruptcy within the next 2 years ? Companies with a score of 3 or above are financially sound ? Companies with scores between 1.81 and 2.99 need further investigation.Required: I. Comment upon the financial position of JH Alarms plc in the light of the last three years’ performance. You should calculate Z scores and use any additional financial ratios that you consider to be relevant. (25 marks) II. Provide a brief summary of additional information which you would require in order to enable a more in depth analysis of the performance of the company. (10 marks) III. Altman’s (1968) Z score model could be said to be an example of quantitative analysis, whereas Argenti’s (1983) failure model could be described as qualitative. You are required to discuss the relative strengths of these different approaches to the prediction of corporate failure (15 marks). You should also highlight the qualitative issues that may impact on the performance of JH Alarms plc and provide an indication as to why the identified factors are important (10 marks). (25 marks) (Total 60 marks) Grand Total 100 marks Further Information Word Count: 4000 words (maximum) The word count excludes the title page, executive summary, reference list and appendices. Where assessment questions have been reprinted from the assessment brief these will also be excluded from the word count. ALL other printed words ARE included in the word count. Printed words include those contained within charts and tables. See ‘Word Count Policy’ in My Resources for more information. Assignments submitted late will be marked as a 0% fail, unless you have withdrawn your intent to submit for this module in advance of the deadline. Your assessment should be submitted as a single word or pdf file. For more information please see the “Guide to Submitting an Assignment” document available on the module page on ilearn. You must ensure that the submitted assignment is all your own work and that all sources used are correctly attributed. Penalties apply to assignments which show evidence of academic unfair practice. (See ‘Dealing with Plagiarism’ in the Study Skills Guide in My Resources).

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on october 1 natalie king organized real solutions a new consulting firm on october 286272

Aug 29, 2021 | Uncategorized

Cash	$	12,000	Cash withdrawals by owner	$	2,000
Accounts receivable		15,000	Consulting fees earned		17,000
Office supplies		25,500	Rent expense		3,060
Land		36,000	Salaries expense		6,800
Office equipment		18,000	Telephone expense		760
Accounts payable		45,000	Miscellaneous expenses		580
Owner investments		57,700	Using the above information prepare an October statement of owner’s equity for Real Solutions

ron forlani has just gone public and expanded his container business 286294

Aug 29, 2021 | Uncategorized

Container Plastics Company

Ron Forlani has just gone public and expanded his container business. As a creative and skilled engineer, Ron develops technologically advanced machinery and moulds, which provide Container Plastics with a competitive advantage. Above average profits come from the technological advantages, but only temporarily as competitor imitation takes between six months and one year.

Ron has two tactics for addressing this technology copying. First, he plans and works towards continuously introducing technological improvements in processes and products. For example, there is an ongoing goal for production costs to decrease 8 percent a year. Second, Container Plastics stresses new products. For example, there is a policy that 25 percent of the sales each year must come from products introduced in the past five years.

Container Plastics is in the plastic products industry, specifically in the rigid packaging sector. Its products include pop bottles, cosmetic jars, beverage cases, dairy cups and tubs, food trays, pails, and oil containers. In the industry, there are constant modifications and improvements in machinery and processes. Technology is becoming an increasingly important competitive factor in productivity as are product quality and performance. The industry is being pressed to increase the use of higher performance polymer materials, instrumentation, controls and automated materials handling techniques in its processing operations. While these technologies continue to be generally available, they are more demanding in their implementation, and operation and maintenance, reflecting a greater need for higher levels of labour and management skills. Such skills are generally scarce. This is not so with Container Plastics.

Container Plastics is one of the few Canadian organizations that have developed extensive research and development capabilities. The Canadian market was not large enough. However, the free trade agreement with United States, and the reduction in the tariff barrier that protected Canadian rigid packaging organizations, has forced Container Plastics to compete in a larger market.

In this larger market, competition is aggressive and persistent. In addition, waste disposal difficulties with plastics have placed pressure on the industry for solutions. Container Plastics and its competitors have reduced the amount of plastics used in given applications and developed means for economically recycling plastic materials. Additionally, the trade association, the Society of the Plastic Industry of Canada, has a very active program to educate the public about the role of plastics in the environment and to implement viable technologies in Canada that will reduce the amount of plastic materials that eventually reside in landfill sites.

The performance advantages of plastics over competitive products, assures their status as a material of choice in a wide range of applications. Because of evolving global marketing strategies, including rationalization, and tougher competition due to lower tariffs, the industry will not maintain the past rate of growth. Nevertheless, the growth rate will continue to exceed that for the Canadian manufacturing sector.

A technological advantage of Container Plastics is that production set up can be done relatively quickly and inexpensively. Consequently, five basic moulding machines produce nearly 100 different products. This is a sharp improvement from earlier technology which would have required 20 or more moulding machines.

Ron wants accurate product costing for profitable expansion. As the organization is new, he believes the time is appropriate for developing a costing system that is accurate and efficient. Ron has some understanding of job order and process costing systems and standard costing, but he does not know what to use as the organization grows.

You have learned the following about Container Plastics:

There is a sales staff of eight persons, who are located throughout Ontario, Quebec, and Northeastern United States. Agents are employed in Atlantic Canada.

Sales persons contact clients, former clients, and prospective clients for orders. With product design engineers and the production scheduling manager, the sales person prepares a quotation.

Generally, an order is for a certain quantity of a specified product. It will be for a future period, generally a year, with delivery being on a regular schedule or as requested if the client organization uses a JIT inventory system.

Product pricing is a markup of 1200 percent over cost, which is calculated as direct materials. All other costs are indirect. The markup gets reduced if necessary to obtain an order. Ron must approve all “markdowns,” which he does automatically if the sales person requests.

• As long production runs reduce set up costs, products are often inventoried for clients. There is no charge for this service.

The indirect manufacturing costs are many times larger than the materials costs, as shown below. With 27 months of data, you run simple regressions to understand what drives the various indirect cost categories. Exhibits 1 and 2 show the operating statement and the regression equations, respectively.

Exhibit I Container Plastics Company Operating Statement For the year ended December 31
Revenue	$43,152,750
Expenses
Materials	4,226,740
Machine room	15,071,788
Warehouse	5,877,224
Set up	1,548,119
Shipping	1,122,487
Engineering	1,740,821
Administration	1,950,298
Selling and marketing	3,477,844
Total expenses	35,015,321
Operating Income	$8,137,429

	Exhibit 2
Dependent Variable	Independent variable	Constant	Slope
1. Set up costs	Number of set ups	$97,869	$2,721
2. Set up costs	Number of orders	154,872	482
3. Warehouse costs	Square feet	769,072	7
4. Warehouse costs	Size of order	319,543	0.54
5. Shipping costs	Size of order	54,912	1.23
6. Shipping costs	Number of shipments	24,108	374
7. Machine room costs	Through put time	671,564	119
8. Machine room costs	Machine time	974,653	197

Note: for the constant or intercept, the t value was equal to or greater than 2 for above equations 2, 4, and 5 and less than 2 for the others. For the slope or beta, the t value was equal to or greater than 2 for equations 1, 3, 6, and 7 and less than 2 for the others.

Required As the new controller hired to make Container Plastics a world class organization, use the case approach to put forth recommendations for a cost system that will help in accurately pricing quotations.

Attachments:

214759 1 Cont….docx

chapter 4 and 5 problems please complete the following 7 exercises below in either e 286305

Aug 29, 2021 | Uncategorized

Chapter 4 and 5 Problems

Please complete the following 7 exercises below in either Excel or a word document (but must be single document). You must show your work where appropriate (leaving the calculations within Excel cells is acceptable). Save the document, and submit it in the appropriate week using the Assignment Submission button.

Chapter 4 Exercise 3

3.
Cost flows and overhead application

Cleveland Metals uses a job cost system and applies factory overhead to production at a predetermined rate of 180% of direct labor cost. Data pertaining to recent operations follow.

Job no. 636 was the only job in process on January 1 of the current year. The Work in Process account contained a $24,600 balance on this date.
Jobs no. 637, 638, and 639 were started during January.
Total direct material requisitions and direct labor incurred during January amounted to $89,200 and $114,500, respectively.
The only job that remained in process on January 31 was job no. 638, with costs of $15,000 for direct materials and $20,000 for direct labor.

Compute the total cost of the work in process inventory on January 31.
Compute the cost of jobs completed during January, and present the proper journal entry to reflect job completion.

Chapter 4 Exercise 7

7.
Overhead application: Working backward

The Towson Manufacturing Corporation applies overhead on the basis of machine hours. The following divisional information is presented for your review:

	Division A	Division B
Actual machine hours	22,500	?
Estimated machine hours	20,000	?
Overhead application rate	$4.50	$5.00
Actual overhead	$110,000	?
Estimated overhead	?	$90,000
Applied overhead	?	$86,000
Over (under ) applied overhead	?	$6,500

Find the unknowns for each of the divisions.

Chapter 4 Problem 2

2.
Computations using a job order system

General Corporation employs a job order cost system. On May 1 the following balances were extracted from the general ledger;

Work in process $ 35,200

Finished goods 86,900

Cost of goods sold 128,700

Work in Process consisted of two jobs, no. 101 ($20,400) and no. 103 ($14,800). During May, direct materials requisitioned from the storeroom amounted to $96,500, and direct labor incurred totaled $114,500. These figures are subdivided as follows:

*Direct Materials*		*Direct Labor*
Job No.	Amount	Job No.	Amount
101	$5,000	101	$7,800
115	19,500	103	20,800
116	36,200	115	42,000
Other	35,800	116	18,000
	$96,500	Other	25,900
			$114,500

Job no. 115 was the only job in process at the end of the month. Job no. 101 and three “other” jobs were sold during May at a profit of 20% of cost. The “other” jobs contained material and labor charges of $21,000 and $17,400, respectively.

General applies overhead daily at the rate of 150% of direct labor cost as labor summaries are posted to job orders. The firm’s fiscal year ends on May 31.

Instructions:

Compute the total overhead applied to production during May.
Compute the cost of the ending work in process inventory.
Compute the cost of jobs completed during May.
Compute the cost of goods sold for the year ended May 31.

Chapter 5 Exercise 1

1. High low method

The following cost data pertain to 20X6 operations of Heritage Products:

	Quarter 1	Quarter 2	Quarter 3	Quarter 4
Shipping costs	$58,200	$58,620	$60,125	$59,400
Orders shipped	120	140	175	150

The company uses the high low method to analyze costs.

Determine the variable cost per order shipped.
Determine the fixed shipping costs per quarter.
If present cost behavior patterns continue, determine total shipping costs for 20X7 if activity amounts to 570 orders.

Chapter 5 Exercise 2

The treasurer anticipates the following costs for the event, which will be held at the Regency Hotel:

Room rental $300

Dinner cost (per person) 25

Chartered buses 500

Favors and souvenirs (per person) 5

Band 900

Each person would pay $40 to attend; 200 attendees are expected.

Will the event be profitable for the sorority? Show computations.
How many people must attend for the sorority to break even?
Suppose the sorority encouraged its members to drive to the hotel and did not charter the buses. Further, a planned menu change will reduce the cost per meal by $2. If each member will still be charged $40, compute the contribution margin per person.

Chapter 5 Exercise 3

3.
Break even and other CVP relationships

Cedars Hospital has average revenue of $180 per patient day. Variable costs are $45 per patient day; fixed costs total $4,320,000 per year.

How many patient days does the hospital need to break even?
What level of revenue is needed to earn a target income of $540,000?
If variable costs drop to $36 per patient day, what increase in fixed costs can be tolerated without changing the break even point as determined in part (a)?

Chapter 5 Problem 6

6. Direct and absorption costing

The information that follows pertains to Consumer Products for the year ended December 31, 20X6.

Inventory, 1/1/X6	24,000 units
Units manufactured	80,000
Units sold	82,000
Inventory, 12/31/X6	? units
Manufacturing costs:
Direct materials	$3 per unit
Direct labor	$5 per unit
Variable factory overhead	$9 per unit
Fixed factory overhead	$280,000
Selling & administrative expenses:
Variable	$2 per unit
Fixed	$136,000

The unit selling price is $26. Assume that costs have been stable in recent years.

Instructions:

Compute the number of units in the ending inventory.
Calculate the cost of a unit assuming use of:

Direct costing.
Absorption costing.

Prepare an income statement for the year ended December 31, 20X6, by using direct costing.
Prepare an income statement for the year ended December 31, 20X6, by using absorption costing.

Chapter 6 and 7 Problems

Please complete the following 8 exercises below in either Excel or a word document (but must be single document). You must show your work where appropriate (leaving the calculations within Excel cells is acceptable). Save the document, and submit it in the appropriate week using the Assignment Submission button.

Chapter 6 Exercise 2

2. Schedule of cash collections

Sugarland Company sells a single product and anticipates opening a new facility in Charlotte on May 1 of the current year. Expected sales during the first three months of activity are: May, $60,000; June, $80,000; and July, $85,000. Thirty percent of all sales are for cash; the remaining 70% are on account. Credit sales have the following collection pattern:

Collected in the month of sale 60%

Collected in the month following sale 35

Uncollectible 5

Prepare a schedule of cash collections for May through July.
Compute the expected balance in Accounts Receivable as of July 31.

Chapter 6 Exercise 4
4. Production and cash outlay computations

RPR, Inc., anticipates that 120,000 units of product K will be sold during May. Each unit of product K requires four units of raw material A. Actual inventories as of May 1 and budgeted inventories as of May 31 follow.

	1 May	31 May
Product K (Units)	55,000	60,000
Rate Materials A (Units)	40,000	37,000

Each unit of raw material A costs $8; RPR pays for all purchases in the month of acquisition. Invoices that account for 80% of the cost of materials acquired will be paid within 10 days of receipt, entitling the company to a 2% cash discount.

Determine the number of units of product K to be manufactured in May.
Compute the May cash outlay for purchases of raw material A.

	July	August	September
Beginning cash balance	$10,000	$ ?	$ ?
Add: Cash receipts	50,000	63,000	71,000
Deduct: Cash payments	64,000	58,000	64,000
Cash excess (deficiency) before financing	($4,000)	$ ?	$ ?
Financing
Borrowing to maintain minimum balance	?	?	?
Principal repayment	?	?	?
Interest payment	?	?	?
Ending cash balance	$ ?	$ ?	$ ?

Chapter 6 Exercise 5
5. Abbreviated cash budget; financing emphasis

An abbreviated cash budget for Big Chuck Enterprises follows.

Big Chuck wishes to maintain a $10,000 minimum cash balance at all times. Additional financing is available (and retired) in $1,000 multiples at a 12% interest rate. Assume that borrowings take place at the beginning of the month; retirements, in contrast, occur at the end of the month. Interest is paid at the time of repaying principal and computed on the portion of principal repaid.

Find the unknowns in Big Chuck’s abbreviated cash budget.
Determine the outstanding loan balance as of September 30, after any repayments have been made.

Chapter 6 Problem 3
3. Comprehensive budgeting

The balance sheet of Watson Company as of December 31, 20X1, follows.

WATSON COMPANY
Balance Sheet
December 31, 12X1
Assets
Cash		$4,595
Accounts receivable		10,000
Finished goods (575 units x $7.00)		4,025
Direct materials (2,760 units x $0.50)		1,380
Plant & equipment	$50,000
Less: Accumulated depreciation	10,000	40,000
Total assets		$60,000
Liabilities & Stockholders’ Equity
Accounts payable to suppliers		$14,000
Common stock	$25,000
Retained earnings	21,000	46,000
Total liabilities &. stockholders’ equity		$60,000

The following information has been extracted from the firm’s accounting records:

All sales are made on account at $20 per unit. Sixty percent of the sales are collected in the month of sale; the remaining 40% are collected in the following month. Forecasted sales for the first five months of 20X2 are: January, 1,500 units, February, 1,600 units; March, 1,800 units; April, 2,000 units; May, 2,100 units.
Management wants to maintain the finished goods inventory at 30% of the following month’s sales.
Watson uses four units of direct material in each finished unit. The direct material price has been stable and is expected to remain so over the next six months. Management wants to maintain the ending direct materials inventory at 60% of the following month’s production needs.
Seventy percent of all purchases are paid in the month of purchase; the remaining 30% are paid in the subsequent month.
Watson’s product requires 30 minutes of direct labor time. Each hour of direct labor costs $7.

Instructions:

Rounding computations to the nearest dollar, prepare the following for January through March:

1) Sales budget

2) Schedule of cash collections

3) Production budget

4) Direct material purchases budget

5) Schedule of cash disbursements for material purchases

6) Direct labor budget

Determine the balances in the following accounts as of March 31:

1) Accounts Receivable

2) Direct Materials

3) Accounts Payable

Chapter 7 Exercise 3

3. Variances for direct materials and direct labor

Banner Company manufactures flags of various countries. Each flag has a standard of eight square feet of fabric and three hours of direct labor time. Information about recent production activity follows.

Actual cost of fabric: $4.50 per square foot

Fabric consumed: 32,080 square feet

Standard price per square foot of fabric: $4.25

Standard direct labor rate: $10.00 per hour

Actual direct labor rate: $10.20 per hour

Actual labor hours worked: 11,940

Actual production completed: 4,000 flags

Compute the materials price variance and the materials quantity variance.
Compute the labor rate variance and the labor efficiency variance.

Chapter 7 Exercise 5

5.
Overhead variances

Nova Manufacturing applies factory overhead to products on the basis of direct labor hours. At the beginning of the current year, the company’s accountant made the following estimates for the forthcoming period:

Estimated variable overhead: $500,000
Estimated fixed overhead: $400,000
Estimated direct labor hours: 40,000

It is now 12 months later. Actual total overhead incurred in the manufacture of 7,900 units amounted to $895,100. Actual labor hours totaled 39,800. Assuming a direct labor standard of five hours per finished unit, calculate the following:

Variable overhead efficiency variance
Fixed overhead volume variance
Overhead spending variance

Chapter 7 Problem 1

1.
P26 A1 Basic flexible budgeting (L.O. 2)

Centron, Inc., has the following budgeted production costs:

Direct materials	$0.40 per unit
Direct labor	1.80 per unit
Variable factory overhead	2.20 per unit
Fixed factory overhead
Supervision	$24,000
Maintenance	18,000
Other	12,000

The company normally manufactures between 20,000 and 25,000 units each quarter. Should output exceed 25,000 units, maintenance and other fixed costs are expected to increase by $6,000 and $4,500, respectively.

During the recent quarter ended March 31, Centron produced 25,500 units and incurred the following costs:

Direct Materials		$10,710
Direct Labor		47,175
Variable factory overhead		51,940
Fixed factory overhead
Supervision		24,500
Maintenance		23,700
Other		16,800
Total production costs		$174,825

Instructions:

Prepare a flexible budget for 20,000, 22,500, and 25,000 units of activity.
Was Centron’s experience in the quarter cited better or worse than anticipated? Prepare an appropriate performance report and explain your answer.
Explain the benefit of using flexible budgets (as opposed to static budgets) in the measurement of performance.

Chapter 7 Problem 5

5.
P26 B3 Straightforward variance analysis (L.O. 5)

Arrow Enterprises uses a standard costing system. The standard cost sheet for product no. 549 follows.

Direct materials: 4 units @ $6.50		$26.00
Direct labor: 8 hours @ $8.50		68
Variable factory overhead: 8 hours	@ $7.00	56
Fixed factory overhead: 8 hours	@ 2.5	20
Total standard cost per unit		$170.00

The following information pertains to activity for December:

Direct materials acquired during the month amounted to 26,350 units at $6.40 per unit. All materials were consumed in operations.
Arrow incurred an average wage rate of $8.75 for 51,400 hours of activity.
Total overhead incurred amounted to $508,400. Budgeted fixed overhead totals $1.8 million and is spread evenly throughout the year.
Actual production amounted to 6,500 completed units.

Instructions:

Compute Arrow’s direct material variances.
Compute Arrow’s direct labor variances.
Compute Arrow’s variances for factory overhead.

Attachments:

Accounting Pr….docx

budgets are analyzed through the use of budget variances these variances look at eac 286340

Aug 29, 2021 | Uncategorized

Budgets are analyzed through the use of budget variances./ These variances look at each line item within the budget to assess favorable or unfavorable variances. In this exercise, you will calculate and analyze various budget variances.

Assignment Question:

During August, ABC Company’s material purchases amounted to 6,000 pounds at a price of $7.30 per pound. Actual costs incurred in the production of 2,000 units were as follows:

Direct labor: $116,745 ($18.10 per hour)

Direct material: $30,660 ($7.30 per pound)

The standards for one unit of ABC Company’s product are as follows:

Compute the direct material price and quantity variances and the direct labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable.

Again, no PLAGARISM. This assignment question is also due on 3/31/2013, 6:00Pm, EST.

Thank you Vernon

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Unit 6: Module 6 – Employing Calculations Budget Variances Employing Calculations n Budget Variances Budgets are analyzed through the use of budget variances./ These variances look at each line item within the budget to assess favorable or unfavorable variances. In this exercise, you will calculate and analyze various budget variances. Assignment Question: During August, ABC Company’s material purchases amounted to 6,000 pounds at a price of $7.30 per pound. Actual costs incurred in the production of 2,000 units were as follows: Direct labor: $116,745 ($18.10 per hour) Direct material: $30,660 ($7.30 per pound) The standards for one unit of ABC Company’s product are as follows: Compute the direct material price and quantity variances and the direct labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable. Again, no PLAGARISM. This assignment question is also due on 3/31/2013, 6:00Pm, EST. Thank you Vernon??????????????????????

Attachments:

Employing Cal….docx

book vs tax macrs depreciation elwood inc purchased computer 286378

Aug 29, 2021 | Uncategorized

Book vs. Tax (MACRS Depreciation) Elwood Inc. purchased computer equipment on March 1, 2010, for $36,000. The computer equipment has a useful life of 10 years and a salvage value of $3,000. For tax purposes, the MACRS class life is 5 years.

(a) Assuming that the company uses the straight line method for book and tax purposes, what is the depreciation expense reported in (1) the financial statements for 2010 and (2) the tax return for 2010?

(b) Assuming that the company uses the double declining balance method for both book and tax purposes, what is the depreciation expense reported in (1) the financial statements for 2010 and (2) the tax return for 2010?

(c) Why is depreciation for tax purposes different from depreciation for book purposes even if the company uses the same depreciation method to compute them both?

accounting treatment 450279

Aug 29, 2021 | Uncategorized

Businesses incur various costs in selling goods and services. Each business must decide which costs are expenses of the period and which should be included in the cost of the inventory. The following table lists various types of businesses along with certain types of costs they incur:

Accounting Treatment

Business Types of Costs Expense of the Period Inventory Cost Other Treatment

Retail shoe store Shoes for sale

Shoe boxes

Advertising signs

Grocery store Canned goods on shelves

Produce

Cleaning supplies

Cash registers

Frame shop Wooden frame supplies

Nails

Glass

Walk in print shop Paper

Copy machines

Toner cartridges

Restaurant Frozen food

China and silverware

Prepared food

Spices

Required:

Fill in the table to indicate the correct accounting for each type of cost by placing an X in the appropriate column. For any costs that receive other treatment, explain what the appropriate treatment is for accounting purposes.

why is this the balance for this account 285123

Aug 29, 2021 | Uncategorized

If you look at transaction D when I did it on the T account my balance for that was $3042, but in my book it is given for Properites Owned as 1342… Why is it that?? Where did the extra ten thousand come from?? I have attached the file. Please look at it.

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Sussex Regional High School Accounting 120 Test 1 Question 1 Rainbow Real Estate is a business owned by Cathy Geraci. She sells homes on behalf of clients. The accounts of the business are as follows: Assets??Liabilities???Bank?$ 1 056.00?Bank Loan?$ 19 000.00??Accounts Receivable??Accounts Payable???D. Murray?1 351.00?Pioneer Furniture???Niemi?2 516.00?Tuck Corporation?1 520.00??V. Morris?????Office Supplies?1 115.00????Furniture and Equipment?11 916.00????Properties Owned?18 042.00?Equity???Automobile?27 965.00?Cathy Geraci, Capital??? Set up the financial position of Rainbow Real Estate in T Accounts using Excel. Name your file Test 1. Save to your Accounting Folder. For the transactions listed below record the accounting entries in the T accounts. Calculate and record the balances in the accounts and take off a Trial Balance. TRANSACTIONS Received $516.00 cash from A. Niemi Sold a home for V. Morris. For this service, Morris owes $4 150 to Rainbow Real Estate. Paid $95.00 cash for office supplies Sold one of our own properties for $20 000.00. (The property is included in the Properties Owned figure at $5 000.00) Paid $15 000.00 cash to the bank to reduce the amount of the bank loan. Paid $520.00 cash to Tuck Corporation to decrease the amount owed. Paid $40 cash for a new headlight for the automobile. (Does not increase value to Auto) Received $800.00 cash from D. Murray The owner withdrew $500.00 cash for her personal use. Received $2 000.00 cash from V. Morris Paid the balance of the debt to Tuck Corporation in cash. Purchased a new office desk at a cost of $600.00 from Pioneer Furniture on credit. Sold a home for A. McIntosh. McIntosh paid Rainbow Real Estate $5 100.00 cash for the service.

Attachments:

Accounting Te….doc

university of subderland 285125

Aug 29, 2021 | Uncategorized

University of Subderland 1 SUNDERLAND BUSINESS SCHOOL Module Title: Strategic Management Accounting Module Code: APC309 Individual assignment Hand in Date: 8th April 2013 General Information Weighting – 100% of the marks fo

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SUNDERLAND BUSINESS SCHOOL Module Title: Strategic Management Accounting Module Code: APC309 Individual assignment th Hand in Date: 8 April 2013 General Information Weighting – 100% of the marks for this module This is an individual assignment of 3,000 words (+/ 10%), excluding appendices and bibliography. The word count MUST be shown on the front of the assignment. There are TWO questions to be answered in this assignment. Each question carries a maximum mark of 50%. All of the learning outcomes for the module are being assessed in this assignment. The learning outcomes are shown in the section entitled “Marking Guide”, which is further on in this document. The University’s policy on cheating collusion and plagiarism will be applied to this piece of work. You are required to produce a report which answers the following TWO questions: Question 1 You have been asked to advise two entirely different businesses about the benefits and problems associated with what is termed the “traditional approach to budgeting and budgetary control”. One of the businesses operates in a very stable and static market place, where there is little change in either products or demand year on year, whereas the other business operates in a very dynamic, rapidly changing, innovative environment. If your findings suggest that the traditional approach is inappropriate for one or both of the businesses, please suggest and discuss some alternative approaches. The “traditional approach” typically involves the following processes: a) Development of assumptions and plans about the factors influencing next year’s budget in advance of the budget year starting; b) Approval of the budget before the commencement of the budget year; c) Once the budget year has started, there are monthly comparison reports which compares budget and actual performance on both a monthly and cumulative basis; d) Action being taken (where necessary) to…

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Aug 29, 2021 | Uncategorized

1. On the basis of the following data for Teller Co. for 2008 and the preceding year ended December 31, 2008, prepare a statement of cash flows. Use the indirect method of reporting cash flows from operating activities. Assume that equipment costing $125,000 was purchased for cash and equipment costing $85,000 with accumulated depreciation of $65,000 was sold for $15,000; that the stock was issued for cash; and that the only entries in the retained earnings account were net income of $51,000 and cash dividends declared of $13,000.

Year Year

2008 2007

Cash $100,000 $ 78,000

Accounts receivable (net) 78,000 85,000

Inventories 101,500 90,000

Equipment 410,000 370,000

Accumulated depreciation (150,000) (158,000)

$539,500 $465,000

Accounts payable (merchandise creditors) $ 58,500 $ 55,000

Cash dividends payable 5,000 4,000

Common stock, $10 par 200,000 170,000

Paid in capital in excess of par

common stock 62,000 60,000

Retained earnings 214,000 176,000

$539,500 $465,000

2.

Balances of the current asset and current liability accounts at the end and beginning of the year are as follows:

End Beginning

Cash $ 62,000 $73,000

Accounts receivable (net) 75,000 60,000

Inventories 54,000 47,000

Accounts payable

(merchandise creditors) 43,000 37,000

Salaries payable 2,800 3,800

Sales (on account) 210,000

Cost of merchandise sold 70,000

Operating expenses other than depreciation 67,000

Use the direct method to prepare the cash flows from operating activities section of a statement of cash flows.

3.

The comparative balance sheet of Drango Company appears below:

HUERTO COMPANY

Comparative Balance Sheet

December 31, 2007

Assets 2007 2006

Current assets $ 340 $280

Plant assets 675 520

Total assets $1,015 $800

Liabilities and stockholders’ equity

Current liabilities $ 180 $120

Long term debt 250 160

Common stock 325 320

Retained earnings 260 200

Total liabilities and stockholders’ equity $1,015 $800

Instructions

(a) Using horizontal analysis, show the percentage change for each balance sheet item using 2006 as a base year.

(b) Using vertical analysis, prepare a common size comparative balance sheet.

4.

Selected data from the Conner Company are presented below:

Total assets $1,500,000

Average assets 1,700,000

Net income 250,000

Net sales 1,400,000

Average common stockholders’ equity 1,000,000

Net cash provided by operating activities 275,000

Shares of common stock outstanding 10,000

Instructions

Calculate the profitability ratios that can be computed from the above information.

Attachments:

questions for….docx

instructions show complete math of solution no need to show 285277

Aug 29, 2021 | Uncategorized

Instructions: Show complete math of solution, no need to show worded explanation. All final answers, numeric and word selection must be provided. Estimated time: 30 – 45 minutes Thank you. PRACTICE PROBLEMS [1] TaylorT Limited’s statement of financial position at 31 December 20X2 reported the following: Long term notes payable, 6%, due in 20X9 5,300,000 Bonds payable, par value 10,000,000, 8.00%, each $1,000 of face value is convertible into 65 Class B shares; bonds mature in 20X13, net of discount 8,200,000 Common stock conversion rights 540,000 Class A shares, no par, $3, non convertible, cumulative, non voting (42,000 shares outstanding at year end) 2,580,000 Class B shares, voting, 970,000 shares outstanding 28,000,000 ________________________________________ Further: a. During 20X2, 27,000 Class A shares were issued at $50 on 1 July. Dividends were declared and paid semi annually, on 31 May and 30 November. b. Common share options are outstanding, entitling holders to acquire 650,000 Class B shares at $10 per share. c. Interest expense on the convertible bonds was $538,000 in 20X2. d. Income tax rate is 30%. e. Class B share price average for the year was $13. f. The net loss, after tax, for 20X2 was $465,000. Compute the EPS amount(s) that TaylorT should report for 20X2. (Round number of shares in calculations to the nearest whole number and final answers to 2 decimal places. Omit the “$” sign in your response.) Solve for Basic and Dilute EPS. [2] On 1 January 20X1, Delvon AC Services Ltd entered into an agreement to purchase Moore Fuels Limited. The agreement included the following terms: 1. Aker agreed to issue an additional 2,246,000 shares to the prior shareholders of Moore if Aker retained 70% of the customers of Moore at the end of 20X3. 2. Aker agreed to issue 1,464,000 common shares to the prior shareholders of Moore if five key employees remained with Aker through the end of 20X5. 3. Aker agreed to issue an additional 582,000 shares to the prior shareholders of Moore if four new retail fuel units were opened before the end of 20X4. Aker had 11,910,000 common shares outstanding at the beginning of 20X2. Net earnings were 2,115,400 in 20X2. To date, customer retention was in the range of 65%, and the key employees have remained in Aker’s employment. Three new retail outlets were opened in 20X1, and one in early February 20X2. Accordingly, 582,000 common shares were issued to the prior shareholders of Moore, but not until 31 August 20X2. Aker had no other share transactions in 20X2. Calculate basic and diluted earnings per share figures for 20X2. (Round number of shares in intermediate calculations to the nearest whole number and final answers to 2 decimal places. Omit the “$” sign in your response.) Solve for basic and dilute EPS. [3] Jim Company has reported basic earnings per Class A common share of $2.78. Jim has a tax rate of 40%. The average share price during the year was $24. Review each of the following items: A. Class B non voting cumulative $1 shares, 79,000 shares outstanding all year, convertible into Class A shares at the rate of four Class B shares for one Class A share. Dividends of $0.5 were declared this year and basic EPS properly reflects the dividend entitlement of these preferred shares. B. Class A common stock options outstanding all year for 34,800 shares at a price of $47. C. Class A common stock options outstanding all year for 34,800 shares at a price of $20. D. Class A common stock options granted at the end of the fiscal year for 18,000 shares at $14 per share. E. 11%, eight year $5,400,000 convertible bonds outstanding all year, convertible into 17 Class A common shares for every $1,000 bond. A bond discount was recorded when the bond was originally issued and amortization of $47,750 was recorded on the discount this year. On issuance, $460,000 of common stock conversion rights were recorded in shareholders’ equity. F. 7%, 15 year, $9,800,000 convertible bonds outstanding all year, convertible into 24 Class A common shares for every $1,000 bond. A bond discount was recorded on issuance, and amortization of $21,200 was recorded on the discount this year. On issuance, $157,000 of common stock conversion rights were recorded in shareholders’ equity. G. 5%, 15 year, $9,800,000 convertible bonds outstanding at the beginning of the year, convertible into 20 Class A common shares for every $1,000 bond. A bond discount was recorded when the bond was originally issued, and amortization of $2,900 was recorded on the discount this year. On issuance, $157,000 of common stock conversion rights were recorded in shareholders’ equity. The bonds converted into common stock on 1 April of the current year, and basic EPS properly reflects the common shares outstanding since 1 April. Indicate whether each of the above items would be included or excluded in a calculation of diluted EPS. The solution should include the individual effect of each item, as applicable. Indicate the change to the numerator and denominator. (Round individual effect to 2 decimal places and other answers to the nearest dollar amount. Leave no cells blank be certain to enter “0” wherever required. Omit the “$” sign in your response.) Item Numerator Denominator Individual effect A Included or Excluded? $ $ B Included or Excluded? $ $ C Included or Excluded? $ $ D Included or Excluded? $ $ E Included or Excluded? $ $ F Included or Excluded? $ $ G Included or Excluded? $ $ ________________________________________

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Aug 29, 2021 | Uncategorized

The sales of Alpha Company in March were $92,000. The Balance sheet of Alpha Company (31 March) is given below.

Current Assets:
Cash	23,000
Accounts receivable	27,600
Merchandise inventory	93,200
Unexpired insurance	4,140
Total Current Assets	147,940
Gross fixed assets	85,100
Accumulated depreciation	29,440
Net Fixed assets	55,660
Total Assets	203,600
Current Liabilities
Accounts payable	23,664
Accrued wages and commissions payable	5,835
Loan	0
Total Current Liabilities	29,499
Owner’s equity	174,101
Total equity and liabilities	203,600

•The projected sales in April and May are $110,000 and $184,000 respectively.

•Alpha sales are 70% cash and 30% credit, collected in the following month. It has no currently overdue accounts and anticipates none in the future.

•The company will purchase a second hand truck on 1 May 2008: $8,000

•Miscellaneous cash expenses: 5% of the current sales

•Rent: $4,600/month

•Insurance expense: paid once a year (beginning of January) = $5,520;

•Depreciation expense: $1,150/month

•Tax rate: 0%

•Wages: $5650/month + 15% commission of sales/month

•70% of the wages made in a specific month are paid in that month, the rests are paid in the following month)

•The inventory policy of the company is to begin a month with a sufficient inventory to cover 80% of sales + $36,000 cushion

•Cost of Goods Sold: 65% of sales

•60% of the purchases made in a specific month are paid in that month, the rests are paid in the following month).

•Alpha borrowed from one of its founder at 1.5% interest/month for the next 2 years. Alpha borrows from and repays the founder at the end of the month. The agreement with this founder stipulates a $30,000 minimum cash balance in the venture’s checking account.

Construct Alpha’s cash budget, income statement, balance sheet and statement of cash flow for April.

briefly introduce the subject and describe its key business or operations appraise h 285507

Aug 29, 2021 | Uncategorized

Question 1

Briefly introduce the subject and describe its key business or operations. Appraise how it plans and manages quality. (
6 marks)

Question 2

Analyse how quality can be used to support the strategies of the subject in the areas of:

Cost
Differentiation
Focus or another generic strategy (12 marks)

Question 3

Envisage a certain work process of the subject that may have quality issues. Formulate a plan to implement the Six Sigma DMAIC process to improve the work process. Compare various quality tools and recommend
ONE (1)
quality tools for each step of DMAIC. You must describe how the quality tool that you recommend can be used for each step of DMAIC. (
20 marks)

Question 4

Discuss any
FOUR (4) building blocks of the quality management system and analyses what the subject must do in each block to create quality. (
12 marks)

Question 5

Compare various types of quality audits, and recommend
TWO (2) types of audits suitable for the subject. Explain how those audits can help to assess whether subject’s quality efforts are practiced correctly and effectively. (
10 marks)

Question 6

Discuss
Five (5) key learning points that you have acquired from working on this assignment. (
5 marks)

……………………………………………………..End of ECA Paper……………………………………………………….

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BUS 363 Total Quality Management End of Course Assessment January Semester 2013 ECA Submission Deadline: 10 April 2013, 12noon. Important: Prepare a report addressing the following question in order, in no more than 10 pages. Indicate all reference in order in the reference list. You are required to identify a real company (or a business unit) in Singapore for your report. Background Total Quality Management (TQM) may be defined as “managing the entire organizations so that it excels on all dimensions of products and services that are important to the customer.” TQM received enormous recognition and adaptation starting in the 1980s in answer to the increasing need for firms to compete on a quality basis. Since the late 1980s, publications have been touting the reasons why TQM have succeeded and failed in many organisations. The reviews were mixed, but generally in favour of a comprehensive quality management system. Most quality experts agree that the reasons for failure of TQM are usually poor management execution of the system. Requirements: You are to study the quality issues and quality management implementation at a company that you are currently working for or familiar with. Indicate the name of the company for your report. It must be a real company (or a business unit). The real company (or a business unit) is hereafter called the “subject”. Question 1 Briefly introduce the subject and describe its key business or operations. Appraise how it plans and manages quality. (6 marks) Question 2 Analyse how quality can be used to support the strategies of the subject in the areas of: Cost Differentiation Focus or another generic strategy (12 marks) Question 3 Envisage a certain work process of the subject that may have quality issues. Formulate a plan to implement the Six Sigma DMAIC process to improve the work process. Compare various quality tools and recommend ONE (1) quality tools for each step of DMAIC. You must describe how the…

Attachments:

BUS 363 TQM E….doc

danshui plant case using budget data how many apple iphone 4 s 285533

Aug 29, 2021 | Uncategorized

Danshui Plant No. 2

In August 2010, Wentao Chen, manager of Danshui Plant No. 2 in southern China, was anxious.

The plant was in the third month of a 12 month contract to assemble the Apple iPhone 4. The contract

called for Danshui to assemble 2.4 million iPhones in the period between June 1, 2010, and May 31,

2011, but now in the third month of the contract, production was only 180,000 units per month. Chen

called Jianye Ma, the plant controller, to request a summary of monthly operations for August as

soon after the end of the month as possible.

Danshui was a contract manufacturer that assembled electronic products for companies wishing

to save labor costs by locating in southern China where semiskilled labor was available for less than

one dollar an hour. Manufacturers like Danshui assembled parts in large plants using assembly line

techniques according to specifications of the international companies that contracted with them for

assembly and final testing. The largest contract manufacturer in China was Foxconn, a division of the

Hon Hai Group of Taiwan, with more than 800,000 workers in China alone and contracts to supply

Apple, Dell, and Hewlett Packard among others.

In expectation of high demand for the iPhone 4, Apple had contracted with Danshui to assemble

iPhones in Plant No. 2, which had been assembling computer hard drives on a contract that was

fulfilled at the end of May 2010. Although the assembly of hard drives was different than assembly of

iPhones, Danshui was confident that its workers would adapt to the new assembly tasks and that it

could hire and train the additional workers as needed. Chen’s job was to get Plant No. 2 up to speed

to fulfill the Apple contract and earn a profit for Danshui’s parent company, located in Hong Kong,

China.

Danshui Plant No. 2 was a profit center that was credited for each iPhone produced and shipped,

and charged for parts, labor, overhead, and shipping. Because the contract was for a year, an annual

budget was established soon after the iPhone contract was signed. This budget was divided by 12 to

establish equal monthly budgets to which actual revenues and expenses could be compared. All

budgeting and monthly reporting was done in U.S. dollars.

9 913 525

SEPTEMBER 28, 2012

913 525 | Danshui Plant No. 2

2 BRIEFCASES | HARVARD BUSINESS SCHOOL

As the plant manager, Wentao Chen was responsible for control of all costs in his plant. Materials,

labor, and overhead were his responsibility. This was done to provide incentive to control all costs

whether caused by use waste, damage, theft, or inefficiencies.

The Apple iPhone 4

The iPhone 4 contained more than 100 components manufactured in plants located in Europe,

Asia, and the United States. For examples, Samsung supplied flash memories and application

processors, and Infineon (a German chip maker) supplied chips that send and receive phone calls and

data. A gyroscope, new to the iPhone 4, came from STMicroelectronics, based in Geneva, and a

touch screen module came from Taiwan. Contract manufacturers assembled these parts in assembly

line plants that required each worker to focus on one or more tasks in a short period of time as each

phone moved along an assembly line toward completion. Estimates of the material cost of each

iPhone were around $180, assembly labor around 7% of total cost, and Apple’s profit margins about

60% of the selling price to customers. (See Exhibits 1 and 2 for estimated standard costs and

overhead budgets for the Danshui Plant No. 2.)

The assembly process at Danshui Plant No. 2 was almost entirely based on handwork by workers.

There were about 140 steps in the assembly process for an iPhone 4, and each phone was handled by

325 individuals during the five days required for assembly. Apple released the iPhone 4 on June 24,

2010 and more than 1.7 million units were sold in the first three days it was available. It was the

most successful product launch in Apple history. Apple fanatics around the world waited in long

lines to get their hands on the new phone.

The August Report

On September 2, Chen arrived at his office and found a report on August operations. (See Exhibit

3). The controller, Jianye Ma, had attached a note which Chen read with interest.

To: Wentao Chen

From: Jianye Ma and Bingqian Li

Date: September 1, 2010

Per your request we have compiled a preliminary report on August operations. At

first glance, revenue was below budget, material usage seems good, and labor costs were

above budget. In terms of plant profit, our budget was $100,000, but we actually had a

loss of $672,000. The main reason for the shortfall may be that we have been unable to

produce 200,000 iPhone 4 units in any of the three months we have been working on this

contract.

Our major obstacle is hiring enough qualified labor to get production up to 200,000

units per month. We cannot find people to hire, even though we have raised our factory

wages by almost 30% since July. (A friend at Foxconn in Shenzhen told Li that they

raised their starting pay by 35% since March, and they are building new plants elsewhere

where unemployment is high.)

In addition, we continue to have trouble with the Samsung flash memory installation.

Unless these are handled very carefully, they can be damaged by heat during installation.

One thousand flash memories were damaged in August and had to be replaced after

inspection. Samsung is aware of this problem and has begun to install a shield to prevent

Danshui Plant No. 2 | 913 525

HARVARD BUSINESS SCHOOL | BRIEFCASES 3

some of the damage; however, as a result, Samsung raised the price of each unit $2.00

starting in mid June. Fortunately, Apple raised our revenue recovery by an equal

amount, so this should be neutral. We apparently had a favorable variance on flash

memories and other parts.

Li is uncomfortable with this report. She feels we should prepare a new budget

showing what we would have spent using standard costs and a production volume of

180,000 units. She says that the current report (Exhibit 3) distorts how we did, and that

until we prepare a “flexible budget” to compare our actual performance to that budget

we run the risk of misinterpreting our performance.

It will take Li a couple of days to prepare and evaluate a flexible budget because she is

working on a tax report that is due September 7. I will talk with you next week once we

receive the flexible budget from Li.

Some data on the iPhone 4 is adapted from David Barboza, “Supply Chain for iPhone Highlights Costs in

China,” New York Times, July 6, 2010.

Required:

1. Using budget data, how many Apple iPhone 4’s would have to have been completed for

Danshui Plant No. 2 to break even?

2. Using budget data, what was the total expected cost per unit if all manufacturing and

shipping overhead (both variable and fixed) were allocated to planned production? What

was the actual cost per unit of production and shipping?

3. Prepare a flexible budget for 180,000 iPhone 4’s and calculate flexible budget variances using

actual costs for August.

4. Estimate material price and usage for flash memories, labor rate and usage (efficiency)

variances, and the overhead spending variance for August.

5. What are some strategies or decisions that Wentao Chen should consider in trying to solve

the problems with the Apple iPhone 4 contract in the next nine months? How would these

change the costs and profitability of Danshui Plant No. 2 and the iPhone 4 contract?

913 525 | Danshui Plant No. 2

4 BRIEFCASES | HARVARD BUSINESS SCHOOL

Exhibit 1 Standard Variable Costs for iPhone 4 (U.S. Dollars)

Bill of materials (per unit)

Purchased chips:

Flash memory (Samsung) $27.00

Application processor (Samsung) 10.75

Chip for phone calls (Infinion) 14.05

Gryoscope (STMicroelectronics) 2.60

8 other purchased chips 70.95

$125.35

Variable supplies and tools 62.54

187.89

Labor:

Assembly and packaging (per unit) 13.11

Shipping (per unit) 1.06

Source: Casewriters and David Barboza, “Supply Chain for iPhone Highlights

Costs in China,” New York Times, July 6, 2010, p. B1.

Exhibit 2 Budgeted Fixed Overhead per Month

Factory rent $400,000

Machine depreciation 150,000

Utility fee and local taxes 52,000

Supervision 127,000

Monthly fixed costs $729,000

Source: Casewriters

Danshui Plant No. 2 | 913 525

HARVARD BUSINESS SCHOOL | BRIEFCASES 5

Exhibit 3 August 2010 Preliminary Report on the Results of Operations

(Thousands of U.S. Dollars)

Monthly

Budget

Actual Variance

(200,000 units) (180,000 units) (20,000 units)

Revenue (transfer from Shenzhen) $41,240 $37,476 $3,764 U

Variable costs

Materials

Flash memory 5,400 5,249 151 F

Application process 2,150 1,935 215 F

Chips—phone 2,810 2,529 281 F

Gyroscope 520 468 52 F

8 other chips 14,190 12,643 1,547 F

Variable supplies and tools 12,507 11,305 1,202 F

Subtotal 37,577 34,129 3,448F

Labor

Assembly and packaging 2,622 3,092 470 U

Shipping 212 191 21 F

Total variable costs 40,411 37,412 2,999 F

Fixed Costs:

Factory rent 400 400

Machine depreciation 150 150

Utility fee and taxes 52 52

Supervision 127 134 7 U

Total fixed costs 729 736 7 U

Total costs 41,140 38,148 2,992 F

Net income $ 100 $ (672) $ 772 U

Attachments:

913525 pdf en….pdf

corporate tax 285606

Aug 29, 2021 | Uncategorized

Portfolio Project Description *NOTE THAT I AM AWAITING THE ACCESS CODE TO THE WEBSITE STATED BELOW TO CITE A CASE LAW FOR EACH PROBLEM AND WILL SUBMIT IT ONCE ITS RECEIVED. IT DOESN’T APPEAR TO BE A MAJOR FACTOR IN THE WORK THAT ONE WOULD NEED ACCESS TO IMMEDIATELY. Complete the following 3 separate and unrelated research problems using the Checkpoint software included with your textbook. Be sure to cite all sources that support your overall conclusions according to APA format. Provide your answers in a Microsoft Word document and clearly label each part.

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Portfolio Project Description *NOTE THAT I AM AWAITING THE ACCESS CODE TO THE WEBSITE STATED BELOW TO CITE A CASE LAW FOR EACH PROBLEM AND WILL SUBMIT IT ONCE ITS RECEIVED. IT DOESN’T APPEAR TO BE A MAJOR FACTOR IN THE WORK THAT ONE WOULD NEED ACCESS TO IMMEDIATELY. Complete the following 3 separate and unrelated research problems using the Checkpoint software included with your textbook. Be sure to cite all sources that support your overall conclusions according to APA format. Provide your answers in a Microsoft Word document and clearly label each part. Submit your portfolio project through the assignment link by Sunday midnight of Week 8. Problem 1 Patrick Zimbrick and his son, Dan, own all of the outstanding stock of Osprey Corporation. Both Dan and Patrick are officers in the corporation and, together with their uncle, John, comprise the entire board of directors. Osprey uses the cash method of accounting and has a calendar year end. In late 2006, the board of directors adopted the following legally enforceable resolution (agreed to in writing by each of the officers): Salary payments made to an officer of the corporation that shall be disallowed in whole or in part as a deductible expense for Federal income tax purposes shall be reimbursed by such officer to the corporation to the full extent of the disallowance. It shall be the duty of the board of directors to enforce payment in each such amount. In 2007, Osprey paid Patrick $560,000 in compensation. Dan received $400,000. On an audit in late 2010, the IRS found the compensation of both officers to be excessive. It disallowed deductions for $200,000 of the payment to Patrick and $150,000 of the payment to Dan. The IRS recharacterized the disallowed payments as constructive dividends. Complying with the resolution by the board of directors, both Patrick and Dan repaid the disallowed compensation to Osprey Corporation in early 2011. Dan and Patrick have asked you, their accountant, to determine how…

Attachments:

ACT400 Portfo….docx

engineering economy the allen flour company purchased a new machine 285706

Aug 29, 2021 | Uncategorized

Refer to your textbook Attached Prepare case study (((ST 9.4))). Make certain to justify, in writing, your analysis.

ST9.1 On January 2, 2004, the Allen Flour Company purchased a new machine at a cost of $82,000. Installation costs for the machine were $3,000. The machine was expected to have a useful life of 10 years, with a salvage value of $3,000. The company uses straight line depreciation for financial reporting. On January 3, 2007, the machine broke down, and an extraordinary repair had to be made to the machine at a cost of $8,000. The repair extend ed the machine’s life to 13 years, but left the salvage value unchanged. On January 2, 2010, an improvement was made to the machine in the amount of $5,000 that increased the machine’s productivity and increased the salvage value (to $6,000), but did not affect the remaining useful life. Determine depreciation expenses every December 31st for the years 2004, 2007, and 2010.

Attachments:

case study pa….pdf

liabilities 285766

Aug 29, 2021 | Uncategorized

1.Partner investments; journal entries. The LP partnership was formed on January 1, 19X7, by investments from Bill Levy and Marv Parcells. Levy contributed $30,000 cash and $80,000 of land. Parcells contributed cash of $50,000 and equipment with a value of $20,000.

Prepare the journal entries needed to record the investments of Levy and Parcells.

2.Payroll accounting. Assume that the following tax rates and payroll information pertain to Brookhaven Publishing:

Social Security taxes: 6% on the first $55,000 earned
Medicare taxes: 1.5% on the first $130,000 earned
Federal income taxes withheld from wages: $7,500
State income taxes: 5% of gross earnings
Insurance withholdings: 1% of gross earnings
State unemployment taxes: 5.4% on the first $7,000 earned
Federal unemployment taxes: 0.8% on the first $7,000 earned

The company incurred a salary expense of $50,000 during February. All employees had earned less than $5,000 by month end.

a. Prepare the necessary entry to record Brookhaven’s February payroll. The entry will include deductions for the following:

Social Security taxes
Medicare taxes
Federal income taxes withheld
State income taxes
Insurance withholdings

b. Prepare the journal entry to record Brookhaven’s payroll tax expense. The entry will include the following:

Matching Social Security taxes
Matching Medicare taxes
State unemployment taxes
Federal unemployment taxes

3. Current liabilities: entries and disclosure. A review of selected financial activities of Visconti’s during 20XX disclosed the following:

12/1 Borrowed $20,000 from the First City Bank by signing a 3 month, 15% note payable.

Interest and principal are due at maturity.

12/10 Established a warranty liability for the XY 80, a new product. Sales are expected to total 1,000 units during the month. Past experience with similar products indicates that 2% of the units will require repair, with warranty costs averaging $27 per unit

12/22 Purchased $16,000 of merchandise on account from Oregon Company, terms 2/10, n/30.

12/26 Borrowed $5,000 from First City Bank; signed a note payable due in 60 days.

12/31 Repaired six XY 80s during the month at a total cost of $162

12/31 Accrued 3 days of salaries at a total cost of $1,400.

Instructions

a. Prepare journal entries to record the transactions.

b. Prepare adjusting entries on October 31 to record accrued interest.

c. Prepare the Current Liability section of Red Bank’s balance sheet as of October 31. Assume that the Accounts Payable account totals $203,600 on this date.

4.Issuance of stock: organization costs. Snowbound Corporation was incorporated in July. The firm’s charter authorized the sale of 200,000 shares of $10 par value common stock. The following transactions occurred during the year:

7/1:	Sold 45,000 shares of common stock to investors for $18 per share. Cash was collected and the shares were issued.
8/11	Sold 20,000 shares to investors for $22 per share. Cash was collected and the shares were issued.
9/1	Declared a cash dividend on 9/1 for $1.00 a share for shareholders on record 10/1 with payment being made on 11/1.

Instructions

Prepare journal entries for the two stock issues.
Prepare journal entries for the cash dividend declaration and payment.
5. Notes payable. Red Bank Enterprises was involved in the following transactions during the fiscal year ending October 31:

8/2:	Borrowed $75,000 from the Bank of Kingsville by signing a 120 day note.
8/20:	Issued a $40,000 note to Harris Motors for the purchase of a $40,000 delivery truck. The note is due in 180 days and carries a 12% interest rate.
9/10:	Purchased merchandise from Pans Enterprises in the amount of $15,000. Issued a 30 day, 12% note in settlement of the balance owed.
9/11:	Issued a $60,000 note to Datatex Equipment in settlement of an overdue account payable of the same amount. The note is due in 30 days and carries a 14% interest rate.
10/10:	The note to Pans Enterprises was paid in full.

Instructions

a. Prepare journal entries to record the transactions.

b. Prepare adjusting entries on October 31 to record accrued interest.

c. Prepare the Current Liability section of Red Bank’s balance sheet as of October 31. Assume that the Accounts Payable account totals $203,600 on this date.

10/31: The note to Datatex Equipment was paid in full.
11/30: Paid note to Bank of Kingville

Attachments:

Week four dra….docx

actual sales in december were 70 000 selling price per unit is projected to remain s 285788

Aug 29, 2021 | Uncategorized

a. Actual sales in December were $70,000. Selling price per unit is projected to remain stable at $10 per unit throughout the budget period. Sales for the first five months of the upcoming year are budgeted to be as follows: January $83,000 February $92,000 March $94,000 April $97,000 May $89,000 b. Sales are 30% cash and 70% credit. All credit sales are collected in the month following the sale. c. Dudley Manufacturing has a policy that states that each month’s ending inventory of finished goods should be 25% of the following month’s sales (in units) d. Of each month’s direct material purchases, 10% are paid for in the month of the purchase, while the remainder is paid for in the month following purchase. Two pounds of direct material is needed per unit at $2 per pound. Ending inventory of direct materials should be 10% of next month’s production needs. e. Most of the labor at the manufacturing facility is indirect, but there is some direct labor incurred. The direct labor hour per unit is 0.02. The direct labor rate per hour is $10 per hour. All direct labor is paid for in the month in which the work is performed. The direct labor total cost for each of the upcoming three months is as follows: January $1,705 February $1,850 March $1,895 f. Monthly manufacturing overhead costs are $5,000 for factory rent, $3,000 for other fixed manufacturing expenses, and $1.20 per unit produced for variable manufacturing overhead. No depreciation is included in these figures. All expenses are paid in the month in which they are incurred. g. Computer equipment for the administrative offices will be purchased in the upcoming quarter. In January, Dudley Manufacturing will purchase equipment for $6,200 (cash), while February’s cash expenditures will be $12,000 and March’s cash expenditure will be $16,800. h. Operating expenses are budgeted to be $1.00 per unit sold plus fixed operating expenses of $1,400 per month. All operating expenses are paid in the month in which they are incurred.

Attachments:

Budget Assign….docx

danshui plant no 2 in august 2010 wentao chen manager of danshui plant no 2 in south 285818

Aug 29, 2021 | Uncategorized

Danshui Plant No. 2 In August 2010, Wentao Chen, manager of Danshui Plant No. 2 in southern China, was anxious. The plant was in the third month of a 12 month contract to assemble the Apple iPhone 4. The contract called for Danshui to assemble 2.4 million iPhones in the period between June 1, 2010, and May 31, 2011, but now in the third month of the contract, production was only 180,000 units per month. Chen called Jianye Ma, the plant controller, to request a summary of monthly operations for August as soon after the end of the month as possible. Danshui was a contract manufacturer that assembled electronic products for companies wishing to save labor costs by locating in southern China where semiskilled labor was available for less than one dollar an hour. Manufacturers like Danshui assembled parts in large plants using assembly line techniques according to specifications of the international companies that contracted with them for assembly and final testing. The largest contract manufacturer in China was Foxconn, a division of the Hon Hai Group of Taiwan, with more than 800,000 workers in China alone and contracts to supply Apple, Dell, and Hewlett Packard among others. In expectation of high demand for the iPhone 4, Apple had contracted with Danshui to assemble iPhones in Plant No. 2, which had been assembling computer hard drives on a contract that was fulfilled at the end of May 2010. Although the assembly of hard drives was different than assembly of iPhones, Danshui was confident that its workers would adapt to the new assembly tasks and that it could hire and train the additional workers as needed. Chen’s job was to get Plant No. 2 up to speed to fulfill the Apple contract and earn a profit for Danshui’s parent company, located in Hong Kong, China. Danshui Plant No. 2 was a profit center that was credited for each iPhone produced and shipped, and charged for parts, labor, overhead, and shipping. Because the contract was for a year, an annual budget was established soon after the iPhone contract was signed. This budget was divided by 12 to establish equal monthly budgets to which actual revenues and expenses could be compared. All budgeting and monthly reporting was done in U.S. dollars.

Required: 1. Using budget data, how many Apple iPhone 4’s would have to have been completed for Danshui Plant No. 2 to break even? 2. Using budget data, what was the total expected cost per unit if all manufacturing and shipping overhead (both variable and fixed) were allocated to planned production? What was the actual cost per unit of production and shipping? 3. Prepare a flexible budget for 180,000 iPhone 4’s and calculate flexible budget variances using actual costs for August. 4. Estimate material price and usage for flash memories, labor rate and usage (efficiency) variances, and the overhead spending variance for August. 5. What are some strategies or decisions that Wentao Chen should consider in trying to solve the problems with the Apple iPhone 4 contract in the next nine months? How would these change the costs and profitability of Danshui Plant No. 2 and the iPhone 4 contract?

Attachments:

913525 pdf en….pdf

why does the presence of a capitalist system affect a 284583

Aug 29, 2021 | Uncategorized

Why does the presence of a capitalist system affect a nation’s perspective on corporate governance?

Corporate governance has become an issue of concern not only for U.S. corporations, but also for corporate entities around the world. With the globalization of business, a corporation’s bad acts (or lack of control systems) can have far reaching consequences. Different models of corporate governance exist, often depending on the degree of capitalism in the particular nation. In the United States, corporate governance tends to give priority to shareholders’ interests. This approach encourages significant innovation and cost and quality competition. In contrast, the coordinated model of governance that prevails in continental Europe and Japan considers the interests of so called stakeholders— employees, managers, suppliers, customers, and the community—to be a priority.

zenith steel company operates a prosperous business the board o 284593

Aug 29, 2021 | Uncategorized

Zenith Steel Company operates a prosperous business. The board of directors voted to spend $20 million of the company’s surplus funds to purchase a majority of the stock of two other companies—the Green Insurance Company and the Blue Trust Company. The Green Insurance Company is a thriving business whose stock is an excellent investment at the price at which it will be sold to Zenith Steel Company. The principal reasons for Zenith’s purchase of the Green Insurance stock are to invest surplus funds and to diversify its business. The Blue Trust Company owns a controlling interest in Zenith Steel Company. The Blue Trust Company is subject to special governmental controls. The main purpose for Zenith’s purchase of the Blue Trust Company stock is to enable the present management and directors of Zenith Steel Company to perpetuate their management of the company. Jones, a minority shareholder in Zenith Steel Company, brings an appropriate action to enjoin the purchase by Zenith Steel Company of the stock of either the Green Insurance Company or of the Blue Trust Company. What decision as to each purchase?

1 this scenario illustrates one of the main reasons why 284596

Aug 29, 2021 | Uncategorized

Aug 29, 2021 | Uncategorized

ACCTG 421 2013 Spring

Case[1] (50 points)

Springsteen Company manufactures two different customized acoustic guitars: beginner model and professional model. The company has two support departments: the maintenance department and the power department, and two producing departments: the construction department and the finishing department. Springsteen allocates support department costs only to the producing departments. It uses job order normal cost accounting system in two producing departments. In the Construction Department, the wooden guitars are built by highly skilled craftsmen and coated with several layers of lacquer. Then the units are transferred to the Finishing Department, where the bridge of the guitar is attached and the strings are installed. The guitars also are tuned and inspected in the Finishing Department[2]. Springsteen estimates to have an annual practical capacity of 6000 guitars (1500 professional model and 4500 beginner model). The diagram below depicts the production process.

Recently, Springsteen has faced intense competition from oversea guitars manufacturers. Springsteen considers implementing the standard costing to improve cost control. After conducting task analysis in the production departments, Springsteen establishes the following standards:

1) Each finished guitar contains seven pounds of veneered wood. In addition, one pound of wood is typically wasted in the production process.

2) The veneered wood used in the beginner model has a standard price of $12 per pound and the professional model has a standard price of $18. The other parts needed to complete each beginner guitar (professional guitar), such as the bridge and strings, cost $15 ($18) per guitar.

3) The labor standards[3] for Springsteen’s two production departments are as follows:

	Construction Department	Finishing Department
Beginner model (B)	3 hours of direct labor at $20 per hour	2 hours of direct labor at $18 per hour
Professional model (P)	5 hours of direct labor at $20 per hour	5 hours of direct labor at $18 per hour

The following historical information has been collected from Springsteen’s accounting information systems:

	2009	2010	2011	2012
Annual sales	4146(B) & 1611(P)	4456(B) & 1256(P)	4668(B) & 1322(P)	4125(B) & 1369(P)
July sales	343(B) & 133(P)	368(B) & 103(P)	385(B) & 108(P)	332(B) & 112(P)

Based on the budgeted production, Springsteen estimated direct costs[4] for the two support and two production departments in July as follows:

	Power Department	Maintenance Department	Construction Department	Finishing Department
Variable	$18,500	$10,000	$25,500	$26,000
Fixed	$4,000	$4,000	$10,000	$15,000
Normal Activity: Kilowatt hours		10,000	60,000	30,000
Maintenance hours	80		160	160

Springsteen also expected to allocate the budgeted general indirect manufacturing costs $18,000 evenly to the construction and finishing department in July.

At the end of June, the balance in Springsteen’s Materials Inventory account, which included 150 pounds of grade A veneered wood, was $2,640; the balance in the finished goods inventory, which was valuated using the last in, first out (LIFO) method, consisted of 2 models, was $19,000.

	Quantity and Unit Cost
Beginner model	30 units @ $440 each
Professional model	10 units @ $580 each

The following pertains to the month of July.

There were no beginning inventories in both production departments.
Springsteen’s work in process inventory on July 31 consisted of two jobs: B0642 and P0642.
Additions to and requisitions from the materials inventory during the month of July included the following.

	Raw Materials	Purchased Parts
Additions	550 pounds of grade A veneered wood for $9,625 3300 pounds of grade B veneered wood for $41,250	100 set of premium bridges and strings for $1,850 400 set of regular bridges and strings for $6,600
Requisitions
Job B0639 (120 beginner units)	936 pounds of grade B wood	125 regular sets
Job B0640 (100 beginner units)	790 pounds of grade B wood	103 regular sets
Job B0641 (150 beginner units)	1170 pounds of grade B wood	153 regular sets
Job B0642 (15 beginner units)	118 pounds of grade B wood	9 regular sets
Job P0640 (30 professional units)	24 pounds of grade A wood	31 premium sets
Job P0641 (35 professional units)	273 pounds of grade A wood	32 premium sets
Job P0642 (10 professional units)	82 pounds of grade A wood	4 premium sets

The average hourly rate for the construction and finishing departments in July was $15 and $14 respectively. The total payroll taxes and fringe benefits rate for Springsteen was 40% of wages paid. The July labor hours consisted of the following:

Account	Construction Department	Finishing Department
Job B0639 (120 beginner units)	350	264
Job B0640 (100 beginner units)	302	200
Job B0641 (150 beginner units)	448	285
Job B0642 (15 beginner units)	32	17
Job P0640 (30 professional units)	150	144
Job P0641 (35 professional units)	173	176
Job P0642 (10 professional units)	52	22

372 beginner models & 70 professional models were sold on account for $600 (beginner model) & $800 (professional model) each. The finished goods inventory is valuated using LIFO method.

The actual direct fixed costs for power department and maintenance department were $4,050 and $4,000 respectively. The actual direct variable costs for power department and maintenance department were $17,084 and $9,280 respectively.

The actual direct fixed costs for construction department and finishing department were $10,800 and $14,800 respectively. The actual direct variable for construction department and finishing department were $23,084.60 and $24,038.40 respectively.

Depreciation of the general facility and equipment shared by both production departments during July amounted to $12,000.

Rent paid in cash for warehouse space used by the production departments during July was $1,200. Utility costs incurred for the warehouse during July amounted to $2,100. The invoices for these costs were received, but the bills were not paid in July.

July property taxes on the general facility were paid in cash, $2,400.

The insurance cost covering factory operations for the month of July was $3,100. The insurance policy had been prepaid.

The costs of salaries and fringe benefits for sales and administrative personnel paid in cash during July amounted to $8,000.

Depreciation on administrative office equipment and space amounted to $4,000.

Other selling and administrative expenses paid in cash during July amounted to $35,000.

The July 1 balances in selected accounts are as follows:

Cash	$138,000
Accounts Receivable	21,000
Prepaid Insurance	5,000
Accumulated Depreciation: Facility & Equipment	102,000
Accounts Payable	13,000

Required:

Submit a hard copy of your work and email an Excel workbook to support your calculations on or before the due date for questions 1 – 9.

Assuming Springsteen uses job order normal costing, and calculate the followings:

budgeted total manufacturing overhead for the year for each production departments.

departmental predetermined overhead rate for the year for each production departments

Prepare the journal entries to record the transactions in July using normal costing.
Calculate the overapplied or underapplied overhead for July. Use the proration method to prepare a journal entry to close this balance.
Prepare a schedule of cost of goods manufactured for July.
Prepare a schedule of cost of goods sold for July.
Prepare an income statement for July.
Assuming Springsteen implements the standard costing, and calculate the followings:

Direct material and direct labor variances
variable manufacturing overhead rate for both production departments in July.
fixed manufacturing overhead rate for both production departments in July.
standard cost for the beginner model and the professional model.

Prepare the journal entries to record the transactions in July using the standard costing.
Prepare entries to close all the variances using the proration method.

Prepare a presentation to answer the following questions:

Do you recommend Springsteen to keep its current job order normal cost accounting system or to implement the standard costing system? Why?
Explain the interpretation and possible interactions between the variances calculated by the standard costing.
Write a memo to the company evaluating Springsteen’s July performance and indicate any appropriate action for management.

[1] The case is based on the materials from Hilton 9
^th edition. [2] The direct material and conversion costs are incurred uniformly throughout the process in finishing department. [3] Direct labor rates include employee benefits. [4] For a production department, direct costs refer only to overhead costs that are directly traceable to the department.

Attachments:

ACCTG 421 Cas….doc

at the end of 2011 the following information is available for topsanah s business 284730

Aug 29, 2021 | Uncategorized

At the End of 2011, the following information is available for Topsanah’s Business 2010 £ 2011 £ Non current assets at valuation Inventory Cash at Bank Cash at Hand Receivables Payables Accruals (rent) Prepayments (rates) 55,000 182,000 16,750 1,120 290,200 123,400 1,200 3,450 50,000 182,500 51,150 2,500 287,340 128,475 1,450 2,300 Cash Movements during 2011 £ Cash receives from customers Cash paid for sundry expenses Cash paid to suppliers 23,340 17,250 22,230 Bank Movements During 2011 £ Received from customers Bank Loan Cash withdrawn from the bank Paid to suppliers Paid for rent Paid for rates Drawings Sundry Expenses 877,800 10,000 22,000 650,520 40,000 38,750 40,000 62,130 (1) Draw up a pro forma combined cash and bank account, receivables and payables control accounts and all other T accounts as required for Topsanah for the year ended 31 December 2011 (2) Prepare Topsanah’s Income statement for the period ended 31 December 2011 (3) Prepare Topsanah’s Balance sheet as at 31 December 2011

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At the End of 2011, the following information is available for Topsanah’s Business ?2010 £?2011 £??Non current assets at valuation Inventory Cash at Bank Cash at Hand Receivables Payables Accruals (rent) Prepayments (rates) ?55,000 182,000 16,750 1,120 290,200 123,400 1,200 3,450?50,000 182,500 51,150 2,500 287,340 128,475 1,450 2,300??Cash Movements during 2011 ?£??Cash receives from customers Cash paid for sundry expenses Cash paid to suppliers?23,340 17,250 22,230??Bank Movements During 2011 ?£??Received from customers Bank Loan Cash withdrawn from the bank Paid to suppliers Paid for rent Paid for rates Drawings Sundry Expenses?877,800 10,000 22,000 650,520 40,000 38,750 40,000 62,130??Draw up a pro forma combined cash and bank account, receivables and payables control accounts and all other T accounts as required for Topsanah for the year ended 31 December 2011 Prepare Topsanah’s Income statement for the period ended 31 December 2011 Prepare Topsanah’s Balance sheet as at 31 December 2011

Attachments:

3 Questions.docx

revenues using percentage of completion accounting method 284734

Aug 29, 2021 | Uncategorized


Please complete the following. Show all computations using Excel formulas in the yellow boxes for the possibility of receiving partial credit for incorrect answers.

DuPont Analysis:	2012	2011	Please comment on your findings regarding the company’s performance as evidenced by your DuPont Analysis.
Return on Equity
Return on Assets
Financial Leverage
Profit Margin
Asset Turnover

Profitability Analysis:	2012	2011	Please comment on your findings regarding the company’s performance as evidenced by your Profitability Analysis.
Return on Equity
Return on Net Operating Assets
FLEV
Spread
Net Operating Profit Margin
Net Operating Asset Turnover

Liquidity Analysis:	2012	2011	Please comment on your findings regarding the company’s liquidity.
Current Ratio
Quick Ratio

Solvency Analysis:	2012	2011	Please comment on your findings regarding the company’s solvency.
Liabilities to Equity Ratio
Times Interest Earned

Additional Analysis:	2012	2011	Please comment on your findings regarding the company’s management of r&d, receivables, inventory, and pp&e.
Research & development costs as percent of net sales
Accounts Receivable Turnover
Average Collection Period
Gross Profit Ratio
Inventory Turnover
Average Inventory Days’ Outstanding
Property Plant & Equipment Turnover
Estimated Useful Life
Percent Used Up

Does your company report:	Yes or No	If yes, amount:
unearned revenues?
revenues using percentage of completion accounting method?
restructuring charges?
discontinued operations?
extraordinary item(s)?
Basic EPS?
Diluted EPS?
Allowance for Uncollectible Accounts?
Deferred Taxes?

What accounting method does your company use for:	Method
inventory?
depreciation?

Attachments:

Homeworkd 3.xlsx

cost and decision making analysis calculate the company s overall break even point i 284834

Aug 29, 2021 | Uncategorized

Assignment 2: LASA 1—Cost and Decision Making Analysis

Cheryl Montoya picked up the phone and called her boss, Wes Chan, Vice President of Marketing at Piedmont Fasteners Corporation.

Cheryl: “Wes, I’m not sure how to go about answering the questions that came up at the meeting with the President yesterday.”

Wes: “What’s the problem?”

Cheryl: “The president wanted to know the break even point for each of the company’s products, but I am having trouble figuring them out.”

Wes: “I’m sure you can handle it, Cheryl. And, by the way, I need your analysis on my desk tomorrow morning at 8:00 sharp in time for the follow up meeting at 9:00.”

Piedmont Fasteners Corporation makes three different clothing fasteners at its manufacturing facility in North Carolina. Data concerning these products appear below:

Velcro Metal Nylon

Normal annual sales volume

100,000 units 200,000 units 400,000 units

Unit selling price $1.65 $1.50 $0.85

Variable cost per unit $1.25 $0.70 $0.25

Total fixed expenses are $400,000 per year.

All three products are sold in highly competitive markets, so the company is unable to raise its prices without losing unacceptably large numbers of customers.

The company has a very effective lean production system, so there is no beginning or ending work in process or finished goods inventories.

Using the module readings, the Argosy University online library resources, and the Internet, research break even point and costing systems. Analyze the case based on your research and what you have learned so far in the course.

Respond to the following:

Calculate the company’s overall break even point in total sales dollars. Explain your methodology (approximately 2 pages).

Of the total fixed costs of $400,000: $20,000 could be avoided if the Velcro product were dropped, $80,000 if the Metal product were dropped, and $60,000 if the Nylon product were dropped. The remaining fixed costs of $240,000 consist of common fixed costs such as administrative salaries and rent on the factory building that could be avoided only by going out of business entirely (approximately 2 pages):

Calculate the break even point in units for each product. Explain your methodology.

Determine the overall profit of the company if the company sells exactly the break even quantity of each product. Present your results.

Evaluate costing systems for this company. Explain if this company should be using a job order or process costing system to accumulate costs (1 page).

Be sure to include your calculations in Microsoft Excel format.

Write a 5–6 page report in Word format. Apply APA standards to citation of sources. Use the following file naming convention: LastnameFirstInitial_M3_A2.doc.

By Sunday, March 24, 2013, deliver your report and calculations to the M3: Assignment 2 Dropbox.

This assignment is worth 200 points and will be graded using a rubric. Download and read the rubric to understand the expectations.

Assignment 2 Grading Criteria

Maximum Points

Calculate the company’s overall break even point in total sales dollars.

Explain your methodology.

30

Calculate the break even point in units for each product in the scenario.

Explain your methodology.

52

Explain if the company sells exactly the break even quantity of each product, what will be the overall profit of the company and show your results.

16

Compare and explain if this company should be using a job order or process costing system to accumulate costs.

82

Write in a clear, concise, and organized manner; demonstrate ethical scholarship in accurate representation and attribution of sources; and display accurate spelling, grammar, and punctuation.

20

Total:

200

For assistance with any problems you may have when completing this assignment—OR—to offer your assistance to classmates, please use the Problems and Solutions Discussion area located through the left side navigation link.

Attachments:

AUO B6021 M3A….doc

accounting information systems winter 2013 284852

Aug 29, 2021 | Uncategorized

Administration

70 358 01 Accounting & Information Systems Winter 2013 – Assignment “Bodgett and Panik LLP”

You must submit your case via e mail in Word or PDF files. Paper submissions will not be accepted.
It must be received by *************** by midnight on March 26, 2013. Paper copies will not be accepted.
No extensions will be granted under any circumstances. Any submission received after this date will not be marked and will receive a mark of zero. For this reason, you are encouraged to submit your case at least 24 hours in advance, and request a “delivery receipt” when you do so.
Students should make a team submission (3 5 students per team – you are responsible for forming your own teams). You are strongly encouraged to have at least one team meeting to brainstorm and discuss ideas. When submitted, the assignment must clearly state the names of all students who participated in it, and all should be cc’d on the e mail sending it to the instructor. All students who participated in a specific submission will receive the same mark for the assignment. ?Marking

This case study represents 15% of the final grade of the course.
An average standard of professional communication is expected. However, additional marks may be added for a reply that is well reasoned and clearly laid out – or up to 5 marks deducted for a reply that is not up to such a standard.
1 mark is available for each relevant point made. However, the case will be marked out of 50 marks. Additional marks over 50 (ie. >100%) may be awarded at instructor’s discretion for strong submissions that address many points, or that raise valid points not covered in the model answer.

Context and requirement:

You are Sam Itsmart, a professional accountant in a growing practice in a mid size Ontario town, with a specialty in IT matters.

On Monday morning, you receive a v mail from your boss Sydney, which is as follows: “Hi Sam, I’m sending you an e mail which has a transcript of a phone interview with Darren Panik. Actually, it’s more of a monologue, but you’ll get the idea. Darren is a lawyer who’s in partnership with one other lawyer. He’s an old school friend of mine but I haven’t heard from him in several years. Sounds like they need our help, big time. Please could you review the transcript then come chat with me.”

The transcript is attached. After reviewing it, you and Sydney agree that you need to:

Identify what specific things went wrong here, and the possible implications. You have agreed a preliminary list of key areas of concern, as follows: ?o Projectmanagementandoversight ?o Systemtestingandconversion ?o Likelyongoingissueswiththesystem ?o Securityanddataintegrity/continuity

Consider other possible things that Darren needs to think about – either IT specific, or broader business issues that become apparent from the information you have. Your notes can include further questions where you feel you will need further information. ?REQUIREMENT: Prepare some working notes for the meeting that address the above. The notes should expand on the above and provide talking points for the meeting, as well as remind you of the key points you want to cover. They do not have to be in a formal memo or letter, and can be in bullet point form, so long as clearly understandable. However, bear in mind when preparing them that Darren may ask to take a copy away with him.

Instructor guidance:

This assignment builds on – but is not limited to –some of the material in the Romney text.

Notwithstanding the submission date for this assignment, you are encouraged to scan the remaining chapters (and related slides) of the text for ideas that you may feel are relevant. All slides are posted under the “Resources” tab on CLEW.

Put yourself in the position of a professional advising a client. For this reason, do NOT restrict yourself to the course text. Any other relevant material or comment that could add value to your client’s situation is appropriate. You are welcome to include comments or suggestions from the internet or other sources, but should credit the source if it is not drawn from the course textbook. Some of the points in the model answer derive from common sense or a basic awareness of business issues, as much as course specific technical material.

In business, brevity, clarity and relevance work in your favour. Do NOT include information simply for the sake of providing a long answer. Given the format, 2 3 pages of material (plus cover page and any acknowledgments) will be a reasonable length. Additional material that is drawn from the text book but is not relevant or not applied to the scenario will not gain points, and may cause points to be deducted. ?Transcript of phone interview with Darren Panik ?DARREN: “Syd, thanks for helping us out. To be honest, we really need your help. This thing has been a complete disaster for us – we’ve spent a lot of money for something that doesn’t work right, we have a lot of angry clients, we have upset staff, and now we might have a professional complaint filed against us for breach of confidentiality. I tell you, this has taken years off my life.” ?SYDNEY: “Darren, obviously I’m sorry to hear this. Tell me more. How did you get into this mess?” ?DARREN: “I guess in hindsight Les [Bodgett, Darren’s partner] and I should have kept a much closer eye on Mary. But she has been with us – and the partner we bought the business from for 40 years, and has been our office manager for 20 years, and nobody knows how this place better than she does. She knows how to get whatever information Les and I needed out of our old system, so we figured she could handle the changeover to the new one. But she really dropped the ball on this one – it’s cost lots more money than it should have done, it came on line right in the middle of our peak time, and as I said it doesn’t do what it should do.” ?SYDNEY: “What is this new system supposed to do”? ?DARREN: “Oh, it’s the core of our whole office management. At least, it should be. Timesheeting and client time records, account billings and cash posting, trust account management. Payroll and payables are linked in somehow as well, I don’t quite know how that bit works.”

SYDNEY: “How much involvement did you have in the project?”

DARREN: “Obviously not enough. But we had a meeting with Mary upfront and agreed what the system needed to do that our old system couldn’t, gave her a budget, and told her to check in with us at least once a month on it. Next thing I knew, we were signing the big check to a vendor I’d never heard of, but apparently Mary’s friend – who runs an architecture practice – has used them and raved about them. And the check was just the first of several – there were unexpected things cropping up all over the place, all of which cost money. New hardware, which was apparently part of the deal, new maintenance and service contracts, you name it. And we still haven’t had the training we paid for – everybody has been too busy just surviving.”

SYDNEY: “So you say it doesn’t work.”

DARREN: “Well, that’s the understatement of the century. First of all, it never turned on when we turned the old system off and it took several days to get the old system back up. In our peak season, we had to go back to a paper based system – in the 21st century, I ask you! It was all we could do to get the work out of the door, let alone bill the clients, so our cashflow took another hit. Then, when the new system did come on stream…. Oooh boy. It’s been a disaster. First of all, we can’t seem to get the reports we want. Then, it turns out we didn’t bring over all the data we needed from the old system – so customers would pay bills and we had no record of the bill, if it was sent before we changed over – or it was credited to the wrong customer’s account. Then… odd things would happen, which have me really worried.”

SYDNEY: “Such as?”

DARREN: “Well, I’ll give you a couple of examples. Mary was tied up trying to sort out this mess, so I decided to do my own bills. I raised an invoice in the system for one of my bigger customers, but then I noticed it had not reported all the time I knew full well I had booked to that client code. So I deleted the original invoice and tried again. When I tried to create the new invoice… it was as if that client never existed. No record of it anywhere. Our IT consultant who installed it muttered something about having “anomalies with your foreign keys” but I have no clue what that’s supposed to mean. And I’ve got a printout on my desk here that says that I posted time to a client account on February 31st. How on earth does that happen?”

SYDNEY: “I’ve got some ideas, but we’ll cover them when we meet. You mentioned a possible professional complaint. That sounds nasty. What’s the story?”

DARREN: “Ah. That’s a completely different issue and I don’t know how it happened. I think it is probably totally separate from the new system, but I’m not sure. You know how we have a secure part of our website, which only our clients can access, where we post information for them to retrieve? Well, somehow, one of our clients got hold of information belonging to another client and was able to read it.

I have no idea how, as it was encrypted – in fact, we have to send them a file so they can unlock the encryption. But it happened, and now the one client is threatening action against me personally for breach of confidentiality.”

SYDNEY: “Who hosts your website?”?DARREN: “I think it’s actually run off our server, in my basement.” SYDNEY: “Say what?”

DARREN: “Oh, sorry. We didn’t have enough physical space in the office for the new server it turned out we need. So it’s been installed in my furnace room at home until we can sort out the space. At least that doesn’t seem to be causing any problems.”

SYDNEY: “OK, that’s a lot of stuff to think about. How can I help, Darren?”

DARREN: “I think we need to stand back and do a hard look at what went wrong, and what it could mean. This professional complaint has me really worried. Between you and I, the only chance Les and I have of surviving an investigation by the Law Society is to demonstrate that we’ve worked out what went wrong and have already fixed it. But I dread to think what else could happen that I just haven’t found out about yet.”

SYDNEY: “I’m sorry we have to catch up under these circumstances. I’ll talk to my IT expert Sam about this, and we’ll come over to talk through this on Thursday afternoon. See you then.”

Attachments:

Administratio….docx

financial accounting harvard referencing system history of harvard referencing syste 284872

Aug 29, 2021 | Uncategorized

Financial Accounting 3
Harvard referencing system

History of Harvard referencing system and
Problem of plagiarism and the need of compliance to referencing system
Rules of referencing system with real examples from books or articles

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Financial Accounting 3 Harvard referencing system History of Harvard referencing sytem and Problem of plagiarism and the need of compliance to referencing system Rules of referencing system with real examples from books or articles

Attachments:

Financial Acc….docx

auditing concepts db 284928

Aug 29, 2021 | Uncategorized

Unit 1 Auditing Concepts

Reading Assignment: Whittington & Pany: Ch. 1, 2, 3, 4, 19, 20

Assignment Type:Individual Project Deliverable Length:7–10 PowerPoint slides with speaker notes
APA formatted references
Points Possible:125 Due Date:3/31/2013 11:59:59 PM CT

The CEO of your company recently met with the external auditors to discuss the scope of the year’s audit. The auditors suggested that they conduct an integrated audit. The CEO has asked you, the accountant, to make a presentation at the next board of directors meeting that includes the following:

Give a definition of auditing.
Explain the purposes and reasons for public accounting firms to perform an integrated audit. Address the Sarbanes Oxley Act (SOX).
Explain corporate governance and its relation to integrated audits.
Cite an example of a recent failure in corporate governance.
Find an article in which the actions that the public perceived as necessary to improve the quality of corporate governance are discussed; list the actions requested according to the article.

Please submit your assignment.

The following rubric will be used for grading:

Grading Rubric
10%	Give a definition of auditing.
30%	Explain the purposes and reasons for public accounting firms to perform an integrated audit. Address the Sarbanes Oxley Act (SOX).
20%	Explain corporate governance and its relation to integrated audits.
20%	Cite an example of a recent failure in corporate governance.
20%	Find an article in which the actions that the public perceived as necessary to improve the quality of corporate governance are discussed; list the actions requested according to the article.

financial reporting ii ip 284934

Aug 29, 2021 | Uncategorized

Assignment Type:Individual Project
Deliverable Length:6 10 slides

Points Possible:125
Due Date:4/7/2013 11:59:59 PM CT

APA formatted references

Library Research Assignment

You have been asked to give a presentation to junior staff members on the objectives of financial reporting and the conceptual framework.

Prepare a professional, business quality presentation including the following:

10–12 PowerPoint slides
Professional tone and appearance
Presentation well suited for the audience (junior staffers)
Appropriate citations and references in APA style
Information covering the following topics:
- Identify the 1 general objective of financial reporting.
- Describe the 3 specific objectives of financial reporting.
- Explain the relationship between the objectives of financial reporting.
- Explain the Financial Accounting Standards Board (FASB) conceptual framework.

Please submit your assignment.

The following grading criteria will apply to this assignment:

Grading Criteria
Create a PowerPoint presentation of 10–12 slides.	30%
Identify the 1 general objective of financial reporting. Describe the 3 specific objectives of financial reporting.	30%
Explain the relationship between the objectives of financial reporting. Explain the Financial Accounting Standards Board (FASB) conceptual framework.	30%
Good format, grammar and APA	10%
TOTAL	100%

finance 284986

Aug 29, 2021 | Uncategorized

Case Study 1 Springfield Express is a luxury passenger carrier in Texas.

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Case Study 1 Springfield Express is a luxury passenger carrier in Texas. All seats are first class, and the following data are available: Number of seats per passenger train car 90 Average load factor (percentage of seats filled) 70% Average full passenger fare $ 160 Average variable cost per passenger $ 70 Fixed operating cost per month $3,150,000 What is the break even point in passengers and revenues per month? What is the break even point in number of passenger train cars per month? If Springfield Express raises its average passenger fare to $ 190, it is estimated that the average load factor will decrease to 60 percent. What will be the monthly break even point in number of passenger cars? (Refer to original data.) Fuel cost is a significant variable cost to any railway. If crude oil increases by $ 20 per barrel, it is estimated that variable cost per passenger will rise to $ 90. What will be the new break even point in passengers and in number of passenger train cars? Springfield Express has experienced an increase in variable cost per passenger to $ 85 and an increase in total fixed cost to $ 3,600,000. The company has decided to raise the average fare to $ 205. If the tax rate is 30 percent, how many passengers per month are needed to generate an after tax profit of $ 750,000? (Use original data). Springfield Express is considering offering a discounted fare of $ 120, which the company believes would increase the load factor to 80 percent. Only the additional seats would be sold at the discounted fare. Additional monthly advertising cost would be $ 180,000. How much pre tax income would the discounted fare provide Springfield Express if the company has 50 passenger train cars per day, 30 days per month? Springfield Express has…

Attachments:

Case Study 1 ….doc

shareholder value analysis sva is one member of the family of techniques for determi 284993

Aug 29, 2021 | Uncategorized

Shareholder Value Analysis (SVA) is one member of the family of techniques for determining the market value of a firm based on the drivers of its projected cash flows. Other cash based techniques include Cash Flow Return on Investment (CFROI) and Total Shareholder Return (TSR). SVA is superior to other techniques because valuations are derived from explicitly identified or postulated drivers of value in a strategic framework. SVA starts with fundamental financial theory: the value of an asset is the net present value of its cash flows over the life of the asset. In SVA, the firm is the asset to be valued. One identifies or postulates the drivers of firm cash flows over the life of the firm and integrates the drivers into a model, which generates the estimated free cash flows on a year by year basis. Let’s look at the drivers of cash/value. 1. Sales growth rate: Everything else being constant, the higher the sales growth rate, the greater the projected cash flows. 2. Operating profit margin: The higher the profit margin (sales cash operating expenses), the greater the cash flows. 3. Tax rate: The higher the tax rate, the lower the after tax net cash flow. 4. Working capital investment: Increased sales require greater investments in working capital (inventories, cash, receivables, offset by simultaneous financing provided by accounts payable and accruals), which decrease cash flows accordingly. 5. New fixed capital investment: An expansion (growth in sales) of the business requires a larger base of fixed capital investments, which will decrease cash flows. This is equivalent to total projected capital investment for the year less depreciation. 6. Competitive advantage period: In a perfectly competitive market there are no superior profits to be had, given that all firms must price at marginal cost if they want to make sales. However, by making use of technology, positioning oneself in emerging or high growth industries, through superior customer service/relationship management and by developing a differentiated or niche product, firms will be able to set prices above marginal costs. Firms strive to achieve competitive advantage and thus the flexibility to sell at higher prices and realize higher profit margins. The more a firm is able to exploit a

Attachments:

Shareholder V….docx

SVA exercise.xls

need to submit it now 285023

Aug 29, 2021 | Uncategorized

The following Trial Balance has been extracted from the accounts of Fred Mcith, a Sole trader, for the year ending 30 June 2010.

You are required to:

Post the required Balance Day Adjusting entries in the General journal
Closing entries in the General Journal
Prepare adjustment Trial Balance
Prepare Income statement and Balance sheet.

Account Balances of Fred Mcith as at 30/6/2010

Particulars	Debit$	Credit$
Bank	1894
Petty cash	100
Accounts Receivable Control	2574
Inventory	6518
GST Receivable	845
Freehold Premises	47500
Motor vehicles	10000
Accum Dep—Motor vehicles		7200
Plant & Machinery	27000
Accum Dep—P & M		17000
Investment in Shares	2000
Accounts Payable Control		4488
GST Payable		1980
Mortgage from Bank		10000
Capital		49593
Drawings	1740
Sales		79246
Discount recd		246
COGS	25795
Freight Onwards	972
Advertising	2744
Salaries Sales	21490
Salaries Office	12580
Rates	470
Stationery	1600
Electricity	250
Insurance	2400
Discount allowed	156
Interest on Mortgage	1125
Total	169753	169753

Balance day adjustments not already incorporated in above trial balance as on 30/6/2010;

Inventory is overstated by $250; $275($250+$25)
Salaries accrued for sales $560
Office salaries accrued $370
Insurance prepaid $500
Depreciate motor vehicles at 15% p.a.
Depreciation plant & machinery at 10% p.a.
Write off bad debts $198 ($180 + $18GST)
Provide for doubtful debts at 4% of accounts receivable
Accrue two months mortgage interest at 13.5%p.a.

use the information below to open the ledger for the jack abbott architect as of apr 285032

Aug 29, 2021 | Uncategorized

Use the information below to open the ledger for theJack Abbott, Architect as of April 1, 2000.

Account	Balance
Cash	12,362
Accounts Receivable	21,494
Drafting Supplies	2,539
Office Supplies	320
Land	52,090
Building	89,455
Furniture and Fixtures	3,921
Computer Equipment	0
Accounts Payable	9,428
Mortgage Payable	74,870
J. Abbott, Capital	97,883

Record the following transactions for the month ofApril, using the steps found in the lesson material as a guide.

Date	Transaction
1	Made the $820 monthly payment on the mortgage.
2	Received $940 on account from a customer, N. Jones.
3	Paid $1,020 on account to Office Temps Service.
4	Purchased $540 worth of drafting supplies from Grand and Toy.
5	Received $1,500 from the owner, J. Abbott as an additional investment.
6	Purchased 6 new drafting tables from Waldeck Supplies, $3,600. Made a down payment of $1,600 and the rest is due in 30 days.
7	Paid $500 on account to Kenworthy Janitorial Services.
8	Received $300 from a customer on account, Charles Barkley.
9	Purchased a fax machine on account from Blitz Electronics for $5,000
10	Purchased a computer on account from Future Shop for $14,000.
12	Purchased software worth $1,500 on account from Business Depot. Opened a new account called Computer Software (in the ledger after Office Supplies) to record this item.
15	Sold a used piece of office furniture for $600, which represented a loss of $200 from the original purchase price of the furniture.

Find new balances in each of the accounts, as of April 15.

Create aTrial Balance,as of April 15, 2000, on a new sheet in the same workbook.Make sure the accounts are in the proper numerical order in the Trial Balance.

Attachments:

Asingment.docx

do corporations benefit from shareholders derivative suits if 284453

Aug 29, 2021 | Uncategorized

The Financial Analysis For the past three years, calculate and discuss the importance of the following ratios of “Panera Bread Company” (Provide 2 3 pages) Liquidity Ratios—working capital, current ratio, quick/acid test ratio, receivable turnover, average day’s sales uncollected, inventory turnover, average day’s inventory on hand, operating cycle Profitability Ratios—profit margin, asset turnover, return on assets, debt to equity ratio, return on equity Long term Solvency Ratios—debt to equity ratio, debt to total assets, times interest earned, cash debt coverage Cash Flow Ratios—cash flow yield, cash flows to sales, cash flows to assets, free cash flow Market Strength Ratios—Earnings per share, price earnings per share, payout ratio, book value per share **Also, include an overview of the company’s operating segments and divisions/subsidiaries, if applicable**. Requirements: Accurately calculated the basic financial ratios. Explained the importance of each ratio and how it relates to Panera Bread. Provide conclusions based on Panera Breads financials and ratio calculations.

001.jpg

002.jpg

the x corporation manufactures machine tools the five directors 284554

Aug 29, 2021 | Uncategorized

The X Corporation manufactures machine tools. The five directors of X Corporation are Black, White, Brown, Green, and Crimson. At a duly called meeting of the board of directors of X Corporation in January, all five directors were present. A contract for the purchase of $10 million worth of steel from the D Company, of which Black, White, and Brown are directors, was discussed and approved by a unanimous vote. The board also discussed at length entering into negotiations for the purchase of Q Corporation, which allegedly was about to be sold for around $150 million. By a three to two vote, it was decided not to open such negotiations.

Three months later, Green purchased Q Corporation for $150 million. Shortly thereafter, a new board of directors for X Corporation took office. X Corporation now brings actions to rescind its contract with D Company and to compel Green to assign to X Corporation his contract for the purchase of Q Corporation. Decisions as to each action?

the xyz corporation was duly organized on july 10 its 284555

Aug 29, 2021 | Uncategorized

The XYZ Corporation was duly organized on July 10. Its certificate of incorporation provides for total authorized capital of $1 million, consisting of ten thousand shares of common stock with a par value of $100 per share. The corporation issues for cash a total of 500 certificates, numbered 1 to 500 inclusive, representing various amounts of shares in the names of various individuals. The shares were all paid for in advance, so the certificates are all dated and mailed on the same day. The 500 certificates of stock represent a total of 10,500 shares. Certificate 499 for 300 shares was issued to Jane Smith. Certificate 500 for 250 shares was issued to William Jones. Is the validity of the stock thus issued in any way questionable? What are the rights of Smith and Jones?

to comply with accounting principles a company that engages in 284556

Aug 29, 2021 | Uncategorized

To comply with accounting principles, a company that engages in software development must either ?oexpense?? the cost (record it immediately on the company’s financial statement) or ?ocapitalize?? it (record it as a cost incurred in increments over time). If the project is in the pre or post development stage, the cost must be expensed. Other wise it may be capitalized. Capitalizing a cost makes a company look more profitable in the short term. Digimarc Corp., which provides secure personal identification documents such as drivers’ licenses using digital watermark technology, announced that it had improperly capitalized software development costs over at least the previous eighteen months. The errors resulted in $2.7 million in overstated earnings, requiring a restatement of prior financial statements. Zucco Partners, LLC, which had bought Digimarc stock within the relevant period, filed a suit in a federal district court against the firm. Zucco claimed that it could show that there had been disagreements within Digimarc over its accounting. Is this sufficient to establish a violation of SEC Rule 10b 5? Why or why not?

auto lavage is a canadian company that owns and operates a large automatic carwash f 450196

Aug 29, 2021 | Uncategorized

Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the company%u2019s costs:

Fixed Cost
per Month

Cost per
Car Washed

Cleaning supplies			$	0.70
Electricity	$	1,400	$	0.10
Maintenance			$	0.30
Wages and salaries	$	4,700	$	0.40
Depreciation	$	8,300
Rent	$	2,100
Administrative expenses	$	1,800	$	0.05

For example, electricity costs are $1,400 per month plus $0.10 per car washed. The company expects to wash 8,000 cars in October and to collect an average of $5.90 per car washed.

The actual operating results for October appear below:

Auto Lavage Income Statement For the Month Ended October 31
Actual cars washed		8,100
Revenue	$	49,300

Expenses:
Cleaning supplies		6,100
Electricity		2,170
Maintenance		2,640
Wages and salaries		8,260
Depreciation		8,300
Rent		2,300
Administrative expenses		2,100

Total expense		31,870

Net operating income	$	17,430

Required:

Compute the company’s revenue and spending variances for October. (Input all amounts as positive values. Leave no cells blank be certain to enter “0” wherever required. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Omit the “$” sign in your response.)

Auto Lavage Revenue and Spending Variances For the Month Ended October 31
Revenue	$	(Click to select) F U None

Expenses:
Cleaning supplies		(Click to select) F U None
Electricity		(Click to select) F U None
Maintenance		(Click to select) F U None
Wages and salaries		(Click to select) F U None
Depreciation		(Click to select) F U None
Rent		(Click to select) F U None
Administrative expenses		(Click to select) F U None

Total expense		(Click to select) F U None

Net operating income	$	(Click to select) F U None

job order costing inventory accounts and cost of goods sold 450204

Aug 29, 2021 | Uncategorized

Background:

Smith Die Company manufactures cutting dies fhe shoe industry. Each set of dies is custom designed to a customer’s templates. During the first week of May, six orders were received from customers. They were assigned job numbers 1005 1010. The following transactions occured during the first week of May:

Received shipment of steel from Eastern Steel costing $5000.00

Received and paid for supplies (indirect) materials from Mallard Supply costing $2300.00

Material requisitions indicated that materials were issued to the factory floor as follows:

Job # Direct Materials Indirect Materials

1005 $600 n/a

1006 $800 n/a

1007 $1500 n/a

1008 $600 n/a

1009 $400 n/a

1010 $300

Totals $4200 $800

The labor time ticket summary reflected the following costs for the week:

Job # Direct Labor Indirect Labor

1005 $1500 n/a

1006 $1900 n/a

1007 $3200 n/a

1008 $1300 n/a

1009 $800 n/a

1010 $600 n/a

Totals $9300 $6400

Overhead was applied to all jobs in process at 180% of direct labor cost. Jobs 1005, 1006, 1007, and 1008 were completed and transferred to finished goods. Jobs 1009 and 1010 were still in process at the end of the week. Jobs 1005, 1006, 1007, and 1008 were shipped to customers and billed at 150% of total job cost.

Part A. Calculate the total cost of each job.

Cost of jobs:

1005 1006 1008 1009 1010

Material (amount) (amount) (amount) (amount) (amount)

Labor (amount) (amount) (amount) (amount) (amount)

Overhead (amount) (amount) (amount) (amount) (amount)

Total

accounting 450208

Aug 29, 2021 | Uncategorized

BagODonuts Company bought a used delivery truck on January 1, 2010, for $19,200. The van was expected to remain in service 4 years (30,000 miles). BagODonuts’ accountant estimated that the truck’s residual value would be $2,400 at the end of its useful life. The truck traveled 8,000 miles the first year, 8,500 miles the second year, 5,500 miles the third year, and 8,000 miles in the fourth year.

1. Calculate depreciation expense for the truck for each year (2010 2013) using the:
a. Straight line method.
b. Double declining balance method.
c. Units of Production method.
(For units of production and double declining balance, round to the nearest two decimals after each step of the calculation.)
2. Which method best tracks the wear and tear on the van?
3. Which method would BagODonuts prefer to use for income tax purposes? Explain in detail why BagODonuts prefers this method

accounting 450216

Aug 29, 2021 | Uncategorized

Bascomb Company purchased $420,000 in merchandise on account during the month of April, and merchandise costing $350,000 was sold on account for $425,000.

1. Prepare journal entries to record the purchases and sales assuming Bascomb uses a perpetual inventory system.

2. Prepare journal entries to record the purchases and sales assuming Bascomb uses a periodic inventory system.

Z Mart appropriately uses the installment sales method of accounting for its installment sales. During 2013, Z Mart made installments sales of $300,000 and received payments of $135,000 on those sales. Z Mart’s gross profit margin is 30%. Prepare journal entries to record the sale, collection, and recognition of gross profit.

Rollins Inc. had 100,000 shares of stock outstanding throughout the year. Income tax expense has not yet been accrued. The effective tax rate is 40%. A partial trial balance of Rollins Inc. at December 31, 201X year end is shown below. Prepare a separate statement of comprehensive income for Rollins Inc. for the year ending December 31, 201X.

	Debit	Credit
Sales revenue		5,900,000
Interest revenue		40,000
Loss on sale of investments	10,000
Unrealized losses on investments	150,000
Foreign currency translation gains		260,000
Cost of goods sold	4,400,000
Selling expenses	400,000
Restructuring costs	180,000
Interest expense	20,000
General and administration expenses	300,000

Following is a partial trial balance for Plano Company. Plano had 50,000 shares of stock outstanding throughout the year. Income tax expense has not yet been accrued. The effective tax rate is 30%. Prepare a multiple step income statement with earnings per share disclosure.

Plano Company
Partial Trial Balance
As of December 31, 201X
	Debit	Credit
Sales revenue		700,000
Interest revenue		60,000
Gain on sale of investments (infrequent		110,000
but not unusual)
Cost of goods sold	500,000
Selling expenses	150,000
Restructuring costs	40,000
Interest expense	30,000

balance sheet and income statements 450217

Aug 29, 2021 | Uncategorized

Based on the following information prepare a classified balance sheet and an income statement for the China Tea Company.

China Tea Company
Trial Balance December 31, 201X
	Debit	Credit
Cash	10,500
Accounts receivable	150,000
Prepaid rent	5,000
Inventory	25,000
Equipment	300,000
Accumulated depreciation equipment		125,000
Accounts payable		30,000
Notes payable due in 3 months		30,000
Salaries payable		4,000
Interest payable		1,000
Capital stock		200,000
Retained earnings		50,000
Sales revenue		400,000
Cost of goods sold	180,000
Salaries expense	120,000
Rent expense	15,000
Depreciation expense	30,000
Interest expense	2,000
Advertising expense	2,500
Totals	840,000	840,000

accounting questions 450218

Aug 29, 2021 | Uncategorized

Based on the following information, what is the total equity at the end of 2013? The following is selected financial information for Osmond Dental Laboratories for 2012 and 2013:

Retained earnings January 1 2012 = $53,000

Net income 2012 = $37,000; 2013 = $42,000

Dividends declared and paid 2012 = $15,000; 2013 = $18,000

Capital stock issued 2012 = $70,000; 2013 = $20,000

Total assets 2012 = $276,000; 2013 = $320,000

Answer

$75,000

$99,000

$174,000

$189,000

$320,000

Big Bear Company deals in distressed properties and makes high risk sales. In 2012, the company sold for $250,000 a piece of property that cost $150,000. The cost recovery method was appropriately used. Collections on the sale were: $80,000 in 2012, $120,000 in 2013, and $50,000 in 2014. What is the balance in the deferred gross profit account at the end of 2013? Answer

		$100,000
		$80,000
		$50,000
		$0

Beck Construction Company began work on a new building project on January 1, 2012. The project is to be completed by December 31, 2014, for a fixed price of $108 million. The following are the actual costs incurred and estimates of remaining costs to complete the project that were made by Beck’s accounting staff:

		Estimating remaining costs to
	Actual costs incurred	to complete project
Years	in each year	(measured at Dec. 31 each year)
2012	$30 million	$60 million
2013	$45 million	$45 million
2014	$35 million	$0

What amount of gross profit (or loss) would Beck record on this project for the year 2013?

Answer

		$2 million loss
		$12 million loss
		$10 million loss
		$10 million gain

Dobson Contractors is considering buying equipment at a cost of $75,000. The equipment is expected to generate cash flows of $15,000 per year for eight years and can be sold at the end of eight years for $5,000. Interest is at 12%. Assume the equipment would be paid for on the first day of year one, but that all other cash flows occur at the end of the year. Ignore income tax considerations. Determine the net present value of the cash flows and if Dobson should purchase the machine. Answer

		$194,256 negative net present value of the cash flows. Based on present value considerations, Dobson Construction should not buy the machine.
		$194,256 positive net present value of the cash flows. Based on present value considerations, Dobson Construction should buy the machine.
		$1,534 negative net present value of the cash flows. Based on present value considerations, Dobson Construction should not buy the machine.
		$1,534 positive net present value of the cash flows. Based on present value considerations, Dobson Construction should buy the machine.

On March 12, 2013, Admiral Electronics sold 20 fax machines to Cool Stuff Co. for $10,000, subject to terms 2/10, n30. Admiral uses the gross method of accounting for sales discounts. Which of the following is the correct journal to record receipt of the payment, assuming the correct amount was received on March 20, 2013.

Answer

Cash	9,800
Sales discounts	200
Accounts receivable		10,000

Cash	9,800
Accounts receivable		9,800

Cash	10,000
Accounts receivable		10,000

Cash	10,200
Accounts receivable		10,000
Sales discount		200

A summary of Klugman Company’s December 31, 2013, accounts receivable aging schedule is presented below along with the estimated percent uncollectible for each age group:

Age Group	Amount	%
0 60 days	$60,000	0.5%
61 90 days	$22,000	1%
91 120 days	$3,000	10%
Over 120 days	$1,000	50%

The allowance for uncollectible accounts had a balance of $1,400 on January 1 at the beginning of the year. During the year, bad debts of $750 were written off. What year end adjusting entry should be made?

Answer

		Debit bad debt expense $670; Credit allowance for uncollectible accounts $670
		Debit bad debt expense $1,320; Credit allowance for uncollectible accounts $1,320
		Debit bad debt expense $1,400; Credit allowance for uncollectible accounts $1,400
		Debit bad debt expense $1,000; Credit allowance for uncollectible accounts $1,000
		Debit cash $720; Credit accounts receivable $720

accounting question 450228

Aug 29, 2021 | Uncategorized

Bearing, Inc.
Balance Sheet
December 31, 2011

Assets
Cash	22,100
Accounts receivable	27,000
Inventory	13,500
Supplies	600
Total assets		63,200

Liabilities and Stockholders’ Equity
Accounts payable	17,000
Salaries payable	3,500
Income taxes payable	3,200
Total liabilities		23,700
Stockholders’ equity
Capital stock (10,000 shares outstanding)	20,000
Retained earnings	19,500
Total stockholders’ equity		39,500
Total liabilities and stockholders’ equity		63,200

Bearing, Inc.
Income Statement
For the year ended December 31, 2011

Sales revenue	143,000
Rent revenue	4,000
Total revenue		147,000
Less cost of goods sold		85,000
Gross margin		62,000
Less operating expense
Supplies expense	1,200
Salaries expense	31,000
Miscellaneous expense	6,400	38,600
Income before taxes		23,400
Less income taxes		8,190
Net income		15,210
Earnings per share		1.52

Bearing, Inc.
Post Closing Trial Balance
December 31, 2011
	Debits	Credits
Cash	22,100
Accounts receivable	27,000
Inventory	13,500
Supplies	600
Accounts payable		17,000
Salaries payable		3,500
Income taxes payable		3,200
Capital stock		20,000
Retained earnings		19,500
Totals	63,200	63,200

accounting help 450233

Aug 29, 2021 | Uncategorized

Ben Affleck, Inc., which began operations in 2011, invests in long term available for sale securities. Following is a series of transactions and events determining its long term investment activity.

2011
Jan.	20	Purchased 2,000 shares of Johnson & Johnson at $22.00 per share plus a $240 commission.
Feb.	9	Purchased 1,000 shares of Sony at $46.20 per share plus a $235 commission.
June	12	Purchased 1,800 shares of Mattel at $27 per share plus an $195 commission.
Dec.	31	Per share fair values for stocks in the portfolio are Johnson & Johnson, $23.00; Mattel, $25.50; Sony, $38.

2012
Apr.	15	Sold 2,000 shares of Johnson & Johnson at $25.00 per share less a $685 commission.
July	5	Sold 1,800 shares of Mattel at $25.50 per share less a $491 commission.
July	22	Purchased 660 shares of Sara Lee at $22.50 per share plus a $450 commission.
Aug.	19	Purchased 900 shares of Eastman Kodak at $14 per share plus a $198 commission.
Dec.	31	Per share fair values for stocks in the portfolio are: Kodak, $16.25; Sara Lee, $20.00; Sony, $35.00.

2013
Feb.	27	Purchased 2,600 shares of Microsoft at $68 per share plus a $515 commission.
June	21	Sold 1,000 shares of Sony at $48.00 per share less a $2,640 commission.
June	30	Purchased 1,700 shares of Black & Decker at $36.00 per share plus a $435 commission.
Aug.	3	Sold 660 shares of Sara Lee at $31.25 per share less a $435 commission.
Nov.	1	Sold 900 shares of Eastman Kodak at $19.75 per share less a $2,309 commission.
Dec.	31	Per share fair values for stocks in the portfolio are: Black & Decker, $39.00; Microsoft, $70.00

1.

Prepare journal entries to record these transactions and events and any year end fair value adjustments to the portfolio of long term available for sale securities.

2.

Prepare a table that summarizes the (a) total cost, (b) total fair value adjustment, and (c) total fair value of the portfolio of long term available for sale securities at each year end.

3.

Prepare a table that summarizes (a) the realized gains and losses and (b) the unrealized gains or losses for the portfolio of long term available for sale securities at each year end. (Do not round your intermediate calculations. Record the transactions in the given order. Leave no cells blank be certain to enter “0” wherever required. Losses should be indicated by a minus sign. Omit the “$” sign in your response.)

8 32 cornerstones of cost accounting pls help i will be waiting to give the full amo 450236

Aug 29, 2021 | Uncategorized

Bernard Creighton is the controller for Creighton Hardware Store. INputting together the cash budget for thr fourth quarter of the year, he has assembled the following data.

a. Sales

July (actual) $100,000

August (actual) $120,000

September (estimated) $90,000

October (estimated) $100,000

November (estimated) $135,000

December (estimated) $150,000

b. Each month, 20 percent of sales are foe cash, and 80 percent are on credit. The colection pattern for credit sales is 20 percent in the month of sale, 50 percent in the following month, and 30 percent in the second month following the sale.

c. Each month, the ending inventory exactly equals 40 percent of the cost of the next month’s sales. The markup on goods is 33.33 percent of cost.

d. Inventory purchases are paid for in the month following purchase.

e. Recuring monthly expenses are as follows:

Salaries and wages $10,000

Depreciaition on plant ans equipment $4,000

Utilities $1,000

Other $1,700

f. Property taxes of $15,000 are due and payable on September 15.

g. Advertising fees of $6,000 must be paid on October 20.

h. A lease on a new storage facility is scheduled to begin on November 2. Monthly payments are $5,000.

i. The company has a policy to maintain a minimum cash balance of $10,000. If neccessary, it will borrow to meet its short term needs. All borrowing is done at the beginning of the month. All payments on principal and interest are made at the end of the month. The annual interest rate is 9 percent. The company must borrow in multiples of $1,000.

j. A partially completed balance sheet as of Agust 31 is given below. (Accounts payable is for inventory purchases only.)

Assets Liabilities & Owners Equity

Cash $ ?

Accounts Recieveable $ ?

Inventory $ ?

Plant and equipment $431,750

Accounts payable $?

Common stock $200,000

Retained earnings $268,750

Totals $? $?

Required:

1. Complete the balance sheet given in part (j).

2. Bernard wants to see how the company is doing prior to starting the month of December. Prepare a cash budget for the months of September, October, and November and for the three month period in total (the period begins in September 1). Provide a supporting schedule of cash collections.

3. Prepare a pro forma balance sheet as of November 30.

operational auditing 450241

Aug 29, 2021 | Uncategorized

Bigdeal Corporation manufactures paper and paper products and is trying to decide whether to purchase Smalltek Company. Smalltek has developed a process for manufacturing boxes that can replace containers that use flurocarbons for expelling a liquid product. The price may be as high as $45 million. Bigdeal prefers to buy Smalltek and integrate its products while leaving Smalltek management in charge of day to day operations. A major consideration is the efficiency and effectiveness of Smalltek’s operations. Bigdeal wants to obtain a report on the operational efficiency and effectiveness of the Smalltek sales, production, and research and development departments.

Required: Who can Bigdeal engage to produce the report resulting from this operational audit? Several possibilities exist. Are there any particular advantages or disadvantages in choosing from among them?

urgent 450247

Aug 29, 2021 | Uncategorized

Blue Corporation, a manufacturing company, decided to develop anew line of merchandise. The project began in 2008. Blue had thefollowing expenses in connection with the project:

2012 2013

Salaries $500,000 $600,000

Materials 90,000 70,000

Insurance 8,000 11,000

Utilities 6,000 8,000

Cost of inspection of material

For qualitycontrol 7,000 6,000

Promotionexpenses 11,000 18,000

Advertising 0 20,000

Equipmentdepreciation 15,000 14,000

Cost of marketsurvey 8,000 0

The new product will be introduced for sale beginning in July2010. Determine the amount of the deduction for research andexperimental expenditures for 2012, 2013 and 2014 if:

a. Blue Corporation elects to expense theresearch and experimental expenditures.

b. Blue Corporation elects to amortize theresearch and experimental expenditures over 60 months.

homework help please 450256

Aug 29, 2021 | Uncategorized

Borderbooks Company uses activity based costing. The company produces soft and hard cover books. The estimated costs and expected activity for each of the activity pools follow:

Activity Estimated Expected Activity
Cost Pool Cost Hard Cover Soft Cover Total
Activity 1 $15,675 800 300 1,100
Activity 2 $11,900 500 200 700
Activity 3 $27,600 800 400 1,200

The activity center rate for Activity 3 is? Answer

4 points

Question 27

The difference in total costs between two alternatives is referred to as the? Answer

opportunity cost.

sunk cost.

direct cost.

incremental cost.

4 points

Question 28

What is the major difference between ABC and ABM? Answer

		The goal of ABC is to accurately measure costs while the goal of ABM is to manage and control the activities which cause the costs.
		There is no difference; ABC and ABM are two names for the same thing.
		ABC focuses on control while ABM focuses on measurement.
		ABC is used in managerial accounting while ABM is used in financial accounting.

4 points

Question 29

A company believes it can sell 10,000,000 units of its proposed new garage door opener at a price of $100 each. If the company desires to make a profit of 40% of selling price on the garage door opener, what is the target cost per opener? Answer

$60

$100

$140

$40

4 points

Question 30

Which of the following is not a criterion used to allocate fixed costs? Answer

relative benefits

ability to bear costs

feasible outcomes

equity

4 points

Question 31

The Flybynighter Company sells one product with a variable cost of $4 per unit. The company is unsure what price to charge in order to maximize profits. The price charged will also affect the demand.
If fixed costs are $100,000 and the following chart represents the demand at various prices:

Units Sold 25,000 Price $9

Units Sold 35,000 Price $8

Units Sold 45,000 Price $7

Units Sold 55,000 Price $6

What price should be charged in order to maximize profits? Answer

$7

$9

$6

$8

4 points

Question 32

Albright Company allocates the estimated $270,000 of its accounting department costs to its production and sales departments since the accounting department supports the other two departments particularly with regard to payroll and accounts payable functions. The cost will be allocated based on the number of employees in the production and sales departments. Information regarding costs and employees follows:

The Accounting Department has 4 Employees

The Production Department has 48 Employees

The Sales Department has 12 Employees

How much of the accounting department costs will be allocated to the production and sales departments, respectively? Answer

$67,500 $202,500

$216,000 $54,000

$202,500 $67,500

$54,000 $216,000

4 points

Question 33

Turner Company sells product X for $21 per unit. Unit product costs are as follows:

Direct materials $4

Direct labor $5

Manufacturing overhead $10

Total $19

A special order to purchase 20,000 units was recently received. There is enough capacity to fill the order and filling this order would not disrupt current operations. Turner Company would incur an additional $3 per unit for shipping costs. Forty percent of the manufacturing overhead costs are fixed and would be incurred no matter how many units are produced.

In negotiating a price, the minimum acceptable selling price would be? Answer

4 points

Question 34

Which of the following is not a valid criticism of cost plus pricing? Answer

		The firm’s demand curve is ignored in setting the price and quantity.
		The method is difficult.
		The method employs circular reasoning.
		It is difficult to determine the appropriate markup.

4 points

Question 35

SM Press Company manufactures books. The company is trying to decide whether to print the individual pages in house (the current practice) or have a printing company perform this task.
The cost of having the printing done by the printing company is relevant to this decision? Answer True
False

3 points

Question 36

AFM Corporation, which manufactures bowling pins, receives a special order to manufacture 10,000 special pins that are painted various colors. The cost of direct materials per special pin would be $1.25, the direct labor cost per special pin would be $0.75, and variable overhead per special pin would be $0.40. In addition, though no additional fixed costs would be incurred for this special order, the typical fixed cost per pin manufactured is $1.00. If the customer is willing to pay $2.80 per pin, what would be the additional or incremental operating income or loss if the order is accepted? Answer

4 points

Question 37

How is the contribution margin calculated when utilizing variable costing? Answer

		Sales less variable cost of goods sold, less variable selling and administrative expenses, less fixed cost of goods sold, less fixed selling and administrative expenses
		Sales less cost of goods sold
		Sales less variable cost of goods sold
		Sales less variable cost of goods sold, less variable selling and administrative expenses

4 points

Question 38

During 20×8, Lyle Lanly, Inc. produced, among other products, 10,000 calculators, incurring the following unit costs: $5.05 in direct materials, $3.00 in direct labor, $2.00 in variable overhead, $4.00 in fixed overhead, $0.50 in variable administrative expenses, and $1.00 in fixed administrative expenses. An outsider had offered to produce the calculators for $12.00 each. Assuming that the factory space would have otherwise been idle, acceptance of the outside offer would have what affect on Lanly’s profit? Answer

4 points

Question 39

Cost drivers in activity based costing? Answer

		are workers who influence cost control
		are a grouping of individual costs whose total is allocated
		are always related to production volume
		often assign more costs to low volume products than traditional allocation methods

4 points

Question 40

The Dropinsky Company’s management wants to determine if Division Y should be eliminated. The following Segmented Income Statement data are available:
Division X Division Y Division Z Total
Sales $200 $300 $400 $900
Less variable costs 80 150 160 390
Contribution margin $120 $150 $240 $510
Less direct fixed costs 70 170 120 360
Segment margin $ 50 ($ 20) $120 $150
Less common fixed costs 90
Operating income $60

Assuming all direct fixed costs of Division Y are avoidable, what would be the change in operating income if Division Y were eliminated? Answer

4 points

Question 41

Palpatine Company sells X wing Fighters and uses cost plus pricing. The Fighters have a variable cost per unit of $40.00. Palpatine has annual fixed costs of $500,000. If Palpatine can sell 50,000 Fighters and has a markup of 40% of total cost, what price will Palpatine charge? Answer

taxation research memo bruce wilson won 3 million in the state lottery 450269

Aug 29, 2021 | Uncategorized

Bruce Wilson won $3 million in the state lottery. The lottery pays out the prize money in 20 annual installments of $150,000 each. After receiving three $150,000 installments, Bruce sold the remaining $2.550 million of payments for $1.5 million, reported the $1.5 million as long term capital gain on his tax return, and paid tax on that amount at the 20% tax rate (long term capital gain rate). Bruce%u2019s tax return has been selected for audit by the IRS. Is he likely to prevail on his treatment of the $1.5 million sale of his future lottery payments as a long term capital gain?

Aug 29, 2021 | Uncategorized

3. (TCO 5) Internal Control Procedures are required to safeguard company assets and to ensure ethical operation of the business. (1) Explain how smart hiring practices can satisfy the purpose of internal control (10 points) and (2) provide an example of how this control could be implemented

4. (TCO 4) Inventory valuation methods determine the cost of goods sold and the inventory balance. (1) Explain how the Last in First out (LIFO) method is applied (10 points) and (2) provide an example of the impact that this method of inventory valuation will have on Gross Profit.

5. (TCO 1) To evaluate the financial operation and health of a business ratio analysis is used. (1) Provide the formula for the Current Ratio and explain how it is computed (10 points) and (2) provide an example of how this ratio can be used in decision making in business. (10 points)

accounting 450075

Aug 29, 2021 | Uncategorized

A $320,000 bond was redeemed at 103 when the carrying value of the bond was $332,480. What amount of gain or loss would be recorded as part of this transaction?

Select the correct answer.

loss on bond redemption of $12,480.

loss on bond redemption of $2,880.

gain on bond redemption of $12,480.

gain on bond redemption of $2,880.

comprehensive responsibility accounting segment margin and management compensation 450077

Aug 29, 2021 | Uncategorized

34. Comprehensive Responsibility Accounting, Segment Margin, and Management Compensation

LO2, 4, 8

Gantry Manufacturing is a medium sized organization with manufacturing facilities in seven locations around the southwestern United States. Of these facilities, Galveston and Amarillo are treated as profit centers, with local management exercising authority over manufacturing costs, certain nonmanufacturing costs (e.g., advertising at local minor league baseball stadiums, sponsoring local charity events), and sales revenue. The segment income statements that follow were prepared by facility level accountants and were provided to the corporate office in Denver, Colorado, shortly after the end of this year’s second quarter. Note that the statements are shown in parallel for convenience and are not intended to be combined for analysis purposes.

The managers of these two facilities are former classmates at the University of Texas at Austin and routinely stay in touch with each other. Shortly after receiving the quarterly results from his accountant, the Amarillo manager, Jim Lowell, called his friend in Galveston to talk about the surprising loss shown on his facility’s income statement. After a short conversation with the Galveston manager, Jim met with his accountant. He learned the following:

A recent memo sent from the corporate controller to all facility controllers indicated that new manufacturing overhead rates should be used beginning May 1, 2012. The old rate was $2.80 per direct labor hour and the new rate is $3.25 per direct labor hour. The memo had a new policy statement attached to it asserting that individual manufacturing facilities could no longer establish individual overhead rates.

An average of 210 employees worked 40 hours per week during the quarter. There were 13 weeks in the second quarter.

Each division was required to record a onetime expense associated with ethics training for all new and current employees. The Amarillo facility received an expense allocation of $58,000. Sixty five percent of the allocation is related to manufacturing employees, and the remainder is related to administrative employees.

The corporate office also implemented a new policy related to certain divisional employees’ retirement, insurance, and other benefits. In past years, all benefits were paid by the corporate office and were not allocated to local facilities. However, the company’s new president believes that those costs are more properly reflected in the expenses of the individual facilities because they are incurred by local employees. In total, additional retirement and insurance expenses of $46,500 were incurred for each month during the quarter ended June 30, 2012. Thirty percent of the monthly expenses are related to manufacturing employees, and the remainder is related to administrative employees.

Jim was immediately frustrated by all that he learned from the accountant. Because his and other managers’ bonuses depend on quarterly financial performance, he feels that the corporate memos unfairly reduce his division’s profits. He asked his controller to prepare a revised income statement without the changes implemented by the corporate office during the quarter. Amarillo’s revised income statement appeared as follows:

Jim is not particularly pleased with the financial performance of his facility, preferring to report a small profit as opposed to a more significant loss. He now must decide how to communicate with the corporate office about this revised income statement. You should bear in mind that the corporate office only provides administrative services and does not manufacture goods; however, sales activities for five of the company’s facilities are handled in the corporate office.

Required

A. Assist Jim by identifying reasons that support his desire that the Amarillo facility not be required to implement the changes made by the corporate office.

B. What are the implications of having the corporate office issue memos requiring the facilities to record certain expenses, given the company’s bonus structure? How will the corporate office’s new policy affect the facility management’s motivation?

C. What are some of the possible bases that Gantry Manufacturing could use to allocate fixed expenses?

You are presented with additional information regarding the overall operations of Gentry Manufacturing that currently operates as a privately held firm. You learn that the overall financial results of the company indicate that they have an annual operating income of $15 million, with $125 million allocated towards research and development costs for an upcoming project. However, recent accounting updates suggest that the annual operating income generated would be $7.5 million due to changing economic conditions and consumer preferences.

What is the return on investment (ROI) based upon original estimates? What is the ROI if the new operating income projections are used?
During the next upcoming internal meeting for managers and executives, what advice would you provide to the CEO when she must present a report regarding the proposed project and anticipated results? Assume that the organization has plans to “go public” with an initial public stock offering next year. Would your advice change?
What responsibility does the CEO have to other Gentry employees (including Jim), other managers, the board of directors, and potential venture capitalists?
Include a discussion of Biblical principles and how they are applicable to various areas of the Assignment (e.g. Jim’s decision regarding the revised income statement, new corporate policies regarding expenses, benefits, an bonus structure, fixed expense allocation, accurate ROI reporting, and performance reporting responsibilities).

busn 319 exam 450079

Aug 29, 2021 | Uncategorized

34. (TCO 1) Imagine that you are the marketing manager responsible for developing marketing strategy for a bicycle company. Propose the strategic marketing process you will use, being sure the name the stages, the activities included in the stages, and stage specific examples related to marketing bicycles. (Points : 30)

35. (TCO 4) Managing the product through successive stages of the product life cycle is an important role for a product manager. Assess the three ways to manage a product through its life cycle, including examples to help clarify your assessment. Indicate the reasoning why you would prefer one method over another in a given situation. You can use any product in your examples. (Points : 30)

comprehensive ratio analysis 450080

Aug 29, 2021 | Uncategorized

35. The 2009 financial statements for the Griffin Company are as follows:

GRIFFIN COMPANY STATEMENT OF FINANCIAL POSITION
	12/31/09	12/31/08
Assets
Cash	$40,000	$10,00
Accounts receivable	30,000	55,000
Inventory	110,000	70,000
Property, plant, and equipment	250,000	257,000
Total assets	$430,000	$392,000
Liabilities and stockholders’ equity
Current liabilities	$60,000	$50,000
5% mortgage payable	120,000	162,000
Common stock (30,000 shares)	150,000	150,000
Retained earnings	100,000	30,000
Total liabilities and stockholders’ equity	$430,000	$392,000

GRIFFIN COMPANY INCOME STATEMENT FOR THE YEAR ENDED December 31,2009
Sales on Account		$420,000
Less Expenses
Cost of goods sold		$214,00
Salary expense		50,000
Depreciation expense	7,0000
Interest expense	9,000
Total expense	$280,000
Income before taxes	140,000
Income tax expenses (50%)	70,000
Net income	$70,000

Required

Compute the following ratios for the Griffin Company for the year ending December 31, 2009.

A. Profit margin ratio (before interest and taxes)

B. Total asset turnover

C. Rate of return on total assets

D. Rate of return on common stockholders’ equity

E. Earnings per share of stock

F. Inventory turnover

G. Current ratio

H. Quick ratio

I. Accounts receivable turnover

J. Debt to equity ratio

K. Times interest earned

the diamond glitter company is in the process of preparing its financial statements 450083

Aug 29, 2021 | Uncategorized

4. The company has failed to accrue sales commissions payable at the end of each of the last 2 years, as follows.
	December 31, 2011	$ 5,400
	December 31, 2012	$ 4,600

5. In reviewing the December 31, 2011, inventory, the company discovered errors in its inventory taking procedures that have caused inventories for the last 3 years to be incorrect, as follows. The company has already made an entry that established the incorrect December 31, 2012, inventory amount.
	December 31, 2010	Understated	$ 32,000
	December 31, 2011	Understated	$ 51,000
	December 31, 2012	Overstated	$ 9,500

6. At December 31, 2012, the company decided to change to the straight line method depreciation method on its retail display equipment from double declining balance. The equipment had an original cost of $250000 when purchased on January 1, 2011. It has a salvage value of 0 and an 8 year useful life. Depreciation expense recorded prior to 2012 under the double declining balance method was $62500. The company has already recorded 2012 depreciation expense of $46875 using the double declining balance method.

7. Before the current year, the company accounted for its income from long term construction contracts on the completed contract basis. Early this year, the company changed to the percentage of completion basis for accounting purposes but continues to use the completed contract method for tax purposes. Income for the current year has been recorded using the new method. Prior year tax effects must be considered. The following information is available.
		Pretax Income
		Percentage of Completion	Completed Contract
	Prior to 2012	$320,000	$180,000
	2012	$140,000	$120,000
Required:
Prepare the journal entries necessary at December 31, 2012, to record the corrections and changes made to date related to the information provided. The books are still open for 2012. The income tax rate is 35%. The company has not yet recorded its 2012 income tax expense and payable amounts so current year tax effects may be ignored.

principle of taxation 450084

Aug 29, 2021 | Uncategorized

4. JKL Inc. and Matthew Inc. enter into a business transaction. The two corporations are related parties for tax purposes. Which of the following statements is true?

	JKL and Matthew must account for the transaction using the same method of accounting.
	The IRS has the right to reallocate income from the transaction to prevent distortion.
	The cash method of accounting must be used to account for such transactions.
	JKL and Matthew must request permission from the IRS to engage in the related party transaction.

daniels company deposits all receipts and makes all payments by check 450087

Aug 29, 2021 | Uncategorized

6. (TCO F) Daniels Company deposits all receipts and makes all payments by check. The following information is available from the cash records:

MARCH 31

BANK RECONCILIATION

Balance per bank

$26,746

Add: Deposits in transit

2,100

Deduct: Outstanding checks

(3,800)

Balance per books

$25,046

Month of April Results

Per Bank

Per Books

Balance April 30

$27,995

$24,355

April deposits

8,864

13,889

April checks

13,100

14,080

April note collected

3,000

0

(not included in April deposits)

April bank service charge

35

0

April NSF check of

a customer returned by the bank

(recorded by bank as a charge)

900

0

Instructions

Calculate the amount of the April 30:

(1) Deposits in transit

(2) Outstanding checks

Show all your work for potential partial credit.

flexible and static budgets 450089

Aug 29, 2021 | Uncategorized

8 A1

Burton Transportation Company general manager reports quarterly to the company president on the firm operating performance. The company uses a budget based on detailed expectations for the forthcoming quarter. The general manager has just received the condensed quarterly performance report shown in Exhibit 8 10.

Although the general manager was upset about not obtaining enough revenue, she was happy that her cost performance was favorable; otherwise, her net operating income would be even worse.

The president was totally unhappy and remarked: I can see some merit in comparing actual performance with budgeted performance, because we can see whether actual revenue coincided with our best guess for budget purposes. But, I cannot see how this performance report helps me evaluate cost control performance.

Exhibit 8 10

BurtonTransportation Operating Performance Report Second Quarter, 20X1

Budget Actual Variance

Net revenue $8,000,000 $7,600,000 $400,000 U

Variable Costs

Fuel $ 160,000 $ 157,000 $ 3,000 F

Repairs and maintenance 80,000 85,000 5,000 U

Supplies and miscellaneous 800,000 788,000 12,000 F

Variable payroll 5,360,000 5,200,000 160,000 F

Total variable costs* $6,400,000 $6,230,000 $180,000 F

Fixed Costs

Supervision $ 180,000 $ 183,000 $ 3,000 U

Rent 160,000 160,000 0

Depreciation 480,000 480,000 0

Other fixed costs 160,000 158,000 2,000 F

Total fixed costs $ 980,000 $ 981,000 $ 1,000 U

Total fixed and variable costs $7,380,000 $7,211,000 $169,000 F

Operating income $ 620,000 $ 389,000 $231,000 U

U = Unfavorable

F = Favorable

*For purposes of this analysis, assume that all these costs are totally variable with respect to sales revenue. In practice, many are mixed and have to be subdivided into variable and fixed components before a meaningful analysis can be made. Also, assume that the prices and mix of services sold remain unchanged.

1. Prepare a columnar flexible budget for Burton Transportation at revenue levels of $7,200,000, $8,000,000 and $8,800,000. Assume that the prices and mix of products sold are equal to the budgeted prices and mix.

2. Express the flexible budget for costs in formula form.

3. Prepare a condensed table showing the static budget variance, the sales activity variance, and the flexible budget variance.

direct material and direct labor variances 450090

Aug 29, 2021 | Uncategorized

8 A3

Barber Brass manufactures trumpets, trombones, tubas, and other brass instruments. The following standards were developed for a line of trumpets.

Standard Inputs Expected For Each Standard Price per

Unit of Output Achieved Unit of Input

Direct materials 5 pounds $10 per pound
Direct labor 10 hours $25 per hour

During April, Barber scheduled 550 trumpets for production. However, the company produced only 525.
Barber purchased and used 3,100 pounds of direct materials at a unit price of $8.50 per pound. It used 5,500 hours of direct labor at an actual rate of $26.00 per hour.

1. Compute the standard cost per trumpet for direct materials and direct labor.

2. Compute the price variances and quantity variances for direct materials and direct labor.

3. Based on there sketchy data, what clues for investigation are provided by the variances?

divisional contribution performance and segment margins 450093

Aug 29, 2021 | Uncategorized

9 B2

The president of North Shore Railroad wants to obtain an overview of the company’s operations, particularly with respect to comparing freight and passenger business. He has heard about contribution approaches to cost allocations that emphasize cost behavior patterns and contribution margins, contributions controllable by segment managers, and contributions by segments. The president has hired you as a consultant to help him. He has given you the following information.

Total revenue in 20X3 was $80 million, of which $72 million was freight traffic and $8 million was passenger traffic. 50% of the passenger revenue was generated by division, 1.40% by division 2, and 10% by divison 3.

Total variable costs were $40 million, of which $36 million was caused by freight traffic. Of the $4 million allocable to passenger traffic, $2.1, $1,6, and $.3 million could be allocated to divisions 1, 2, and 3, respectively.

Total separable discretionary fixed costs were $8million, of which $7.6 million applied to freight traffic. For the remaining $400,000 applicable to passenger traffic, $80,000 could not be allocated to specific divisions, while $200,000, $100,000, and $20,000, were allocable to divisions 1, 2, and 3 respectively.

Total separable committed costs, which were not regarded as being controllable by segment managers, were $25 million of which 80% was allocable to freight traffic. Of the 20% traceable to passenger traffic, divisions 1, 2, and 3 should be allocated $3 million, $700,000, and $300,000, respectively; the balance was unallocable to a specific division.

The common fixed costs not clearly allocable to any part of the company amounted to $800,000.

1.The president asks you to prepare statements, dividing the data for the company as a whole between the freight and passenger traffic and then subdividing the passenger traffic into three divisions.

2.Some competing railroads actively promote a series of one day sightseeing tours on summer weekends. Most often, these tours are timed so that the cars with the tourists are hitched on with regularly scheduled passenger trains. What costs are relevant for making decisions to run such tours? Other railroads, facing the same general cost structure, refuse to conduct such sightseeing tours. Why?

3.Suppose that the railroad has petitioned government authorities for permission to drop division 1. What would be the effect on overall company net income for 20X4 operations are expected to be in all respects a duplication of 20X3 operations?

calculate the monthly break even units for each pet house ignore the sales commissio 450096

Aug 29, 2021 | Uncategorized

1•ROJECT OVERVIEW

Pete’s Pet Products is a sole proprietorship owned by Pete Thompson. The store provides a full line of pet products, including food, grooming materials, toys. leashes, etc. The company also sells hand made pet houses, including dog houses. bird cages, and cat castles. Each of the pet houses is being evaluated in terms of cost volume profit. See the relevant information below:

Dog house Bird cage Cat castle Sales Price 5140 S95 5160 Variable cost S65 S34 S56 Fixed monthly cost 30° O 25% 45%

When Pete uses a distributor to sell additional pet houses, he has to pay a sales commission of 8% of the sales price. On average, he sells 60% of each pet house through distributors. The fixed costs (shown above) are based on estimated design time for each product. Pete’s store averages 532.000 of fixed costs per month.

Refer to the Course Schedule within the Syllabus for specific project deliverables and due dates.

DELIVERABLE

Based on the information presented above, please answer the following questions. Use Excel for this assignment. Complete your calculations using the Excel features and simply type in narrative answers.

• Calculate the contribution margin for each pet house. Ignore the sales commission for this computation.

• Calculate the monthly break even units for each pet house. Ignore the sales commission for this computation. • Assuming that Pete plans to sell 750 dog houses, 335 bird cages, and 640 cat castles (60% through distributors), prepare a contribution margin income statement based on these sales volumes. Include sales, each type of variable cost (including sales commission), and fixed costs. • Assuming the distributors decide to ask for a 12% commission on each pet product, compute how much Pete will have to reduce his other costs to make up for this. Are there other counter proposals Pete could suggest? • Based on fierce competition from a rival store named Fran’s Fuzzy Friends, Pete has decided to decrease his selling price for a dog house by 10%. He has also decided to pay a local celebrity $2,000 a month to promote his store. This cost will be allocated only to the dog houses. Recalculate the dog house break even point given this new information. Ignore sales commission for this computation. • Pete was recently asked to submit a bid for a new customer who is interested in purchasing 450 dog houses, 250 bird cages, and 550 cat castles to stock his newly opened store in another state. What factors would impact Pete’s bid to the new customer? What happens if a competitor’s bid comes in lower than what Pete can offer? Would you recommend Pete drop the selling price rather than lose the opportunity? Why or why not? Explain how much he can afford to drop the price.

Attachments:

YbMRQPPBb4EVH….jpg

KSY9LYME601J0….jpg

need help asap plz plz been on this for sometime now auditing assurance services 450109

Aug 29, 2021 | Uncategorized

The accounting firm of Johnson and Johnson has decided to design a nonstatistical sample to examine the accounts receivable balance of Francisco Fragrances, Inc., at October 31. As of October 31, there were 1,500 accounts receivable accounts with a balance of $5.5 million. The accounts receivable population can be segregated into the following strata:

Number and Size of Accounts			Book Value of Stratum
10 accounts >	$	50,000	$	750,000
440 accounts >	$	5,000		3,000,000
1,050 accounts	$	5,000		1,750,000

Jonathan L. Gren, senior in charge of the audit, has made the following decisions:

‘	Based on the results of the tests of controls and risk assessment procedures, a low assessment is made for the risk of material misstatement.
‘	The desired confidence level is moderate.
‘	The tolerable misstatement allocated to accounts receivable is $155,000, and the expected misstatement is $55,000.
‘	All the balances greater than $50,000 will be audited.

Required:

a.	Using the nonstatistical sampling formula included in the textbook, compute the suggested sample size for this test using Table 9 5.

Sample Size

b.	Gren confirmed the accounts receivable accounts selected and noted the following results (Round your answer to the nearest dollar amount. Omit the “$” sign in your response.):

Stratum		Book Value of Stratum		Book Value of Sample		Audit Value of Sample		Amount of Overstatement
>$	50,000	$	750,000	$	750,000	$	746,500	$	3,500
>$	5,000		3,000,000		910,000		894,750		15,250
>$	5,000		1,750,000		70,000		68,450		1,550

Using ratio projection, what is the total projected misstatement?

Total Projected Misstatement

$

chapter 9 25 cornerstones of cost accounting 450137

Aug 29, 2021 | Uncategorized

Algers Company produces dry fertilizer. At the beginning of the year, Algers had the following standard cost sheet:

Direct materials (5lbs. @ $2.60) $13.00

Direct Labor (0.75 hr @ $18.00) 13.50

Fixed overhead (0.75 hr @ $4.00) 3.00

Variable overhead (0.75 hr @ $3.00) 2.25

Standard cost per unit $31.75

Algers computers is overhead rates using practical volume, which is 54,000 units. The actual results for the year are as follows:

a. Units produced: 53,000

b. Direct materials purchased: 274,000 pounds at $2.50 per pound

c. Direct materials used: 270,300 pounds

d. Direct labor: 40,100 hours at $17.95 per hour

e. Fixed overhead: $161,700

f. Variable overhead: $122,000

Required:

1. Compute price and usage variances for direct materials.

2. Compute the direct labor rate and labor efficiency variances.

3. Compute the fixed overhead spending and volume variances. Intercept the volume variance.

4. Compute the variable overhead spending and efficiency varainces.

5. Prepare journal entries for the following:

a. The purchase of direct materials

b. The issurance of direct materials to production (Work in Process)

c. The addition of direct labor to Work in Process

d. The addition of overhead to Work in Process

e. The incurrence of actual overhead costs

f. Closing out of variances to Cost of Goods Sold

need help accounting 450140

Aug 29, 2021 | Uncategorized

Alpaca Corporation had revenues of $200,000 in its first year of operations. The company purchased $70,000 of inventory during the year. The company had no inventory on hand at the end of the year. The company paid $15,000 in salaries during the year. Owners invested $20,000 in the business and $20,000 was borrowed on a five year note. The company paid $2,000 in interest that was the amount owed for the year, and paid $6,000 for a two year insurance policy on the first day of business. Alpaca has an effective income tax rate of 40%. The company paid $5,000 in dividends. Which of the following is the net income for the first year for Alpaca Corporation?

		$110,000
		$60,000
		$107,000
		$57,000
		$61,000
		$66,000

abnormal income 450143

Aug 29, 2021 | Uncategorized

Alpha Company plans to expand into a new geographic area. The executives and shareholders expect the following events to take place over a two year period and the events actually take place. So, I am saying that the expectations are actually realized.

Year 1
January 1:
Issue stock for $10,000 cash
Purchase equipment for $8,000. The equipment is depreciated straight line over 2 years with no salvage value.
Purchase inventory for $2,000 cash

December 31:
Sell all the inventory for $8,000 cash

Year 2
January 1:
Purchase additional inventory for $2,000

December 31:
Sell all the inventory for $8,000
Pay out all the cash as dividends.

Required:
1. Assume the appropriate discount rate is 10 percent. What is the present value of the project from the point of view of the person who purchased the stock?
2. What amount of financial income will Alpha report each year?
3. Assume the appropriate discount rate is 10 percent. What is the present value of the financial net income?
4. Assume the appropriate discount rate is 10 percent. What is the present value of the abnormal financial net income?
5. In this instance, is accounting useful?

helppppzzz 450158

Aug 29, 2021 | Uncategorized

De Anza Manufacturing has just hired a new controller, Diana Deanza. During her first week on the job, Diana was asked to establish a budget for operating expenses in 2011.

Since Diana was not yet familiar with the operations of De Anza Manufacturing, she decided to budget these expenses using the same procedures as the prior controller.

Therefore, in order to establish a budget for operating expenses, Diana started with actual operating expenses incurred in 2010 and added 4.3 percent. Diana based this percentage on inflation as measured by the consumer price index.

Comment on the effectiveness of Diana%u2019s budgeting strategy.

p.s.

as we study a”budgeting chapter”, what budget is to come to your mind as the “starting point” in preparing the master budget? What may result if this budget is inaccurate?

applying the accounting cycle 450164

Aug 29, 2021 | Uncategorized

On April 1, 2009, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company’s first month.
April 1 Nozomi invested $32000 cash and computer equipment worth $26000 in the
company in exchange for common stock
2 The company rented furnished office space by paying $1,300 cash for the first
Month’s (April) rent.
3 The company purchased $2502 of office supplies for cash
10 The company paid $2502 cash for premium on a 12 month insurance policy.
Coverage begins on April 11
14 The company paid $2300 cash for 2 two weeks salaries earned by employees
24 The company collected $16000 cash on commissions from airlines on tickets
Obtained for customers
28 The company paid $2400 cash for two weeks salaries earned by employees
29 The company paid $750 cash for minor repairs to the company’s computers
30 The company paid $550 cash for this month’s telephone bill
30 The company paid $1200 cash for dividends
The company’s chart of accounts follows:
101 cash
106 accounts receivable
124 office supplies
128 prepaid insurance
167 computer equipment
168 accumulated depreciation ‘ computer equip.
209 salaries payable
307 common stock
318 retained earnings
319 dividends
405 commissions earned
612 deprecation expense ‘ computer equip.
622 salaries
637 insurance expense
640 rent expense
650 office supplies expense
684 repairs expense
688 telephone expense
901 income summary

REQUIRED
1. Use the balance column format to set up a ledger account for each account listed in its chart of accounts.
2. Prepare journal entries to record the April transactions and post them to the ledger accounts. The company records prepaid and unearned items in balance sheet accounts.
3. Prepare an unadjusted trail balance as of April 30.
4. Use the following information to journalize and post adjusting entries for the month.
a) Two thirds of one month’s insurance coverage has expired.
b) At the end of the month, $700 of office supplies are still available.
c) This month’s depreciation on the computer equipment is $500.
d) Employees earned $720 of unpaid and unrecorded salaries as of month end.
e) The company earned $3,050 of commissions that are not yet billed at month end.
5. Prepare the income statement and the statement of retained earnings for the month of April and the balance sheet as of April 30, 2009.
6. Prepare journal entries to close the temporary accounts and post these entries to the ledger.
7. Prepare a post closing trial balance.

leander co 450167

Aug 29, 2021 | Uncategorized

On April 30, 2013, Leander Co. had 21,600

units in process that were 85 percent complete as to material, 60 percent complete as

to direct labor, and 45 percent complete as to overhead. During May, 561,000 units

were started. The 13,700 units in ending inventory were 75 percent complete as to material,

25 percent complete as to direct labor, and 10 percent complete as to overhead.

a. Calculate the physical units to account for in May.

b. How many units were started and completed during May?

c. Determine May’s EUP for each category using the weighted average method.

d. Determine May’s EUP for each category using the FIFO method.

e. Reconcile your answers to parts (c) and (d).

a.	582600



b.	568900



c.	DM
	DL
	OH



d.	DM
	DL
	OH



e.	WA	FIFO	Difference

managerial accounting 450195

Aug 29, 2021 | Uncategorized

Auto Lavage is a Canadian company that owns and operates a large automatic carwash facility near Quebec. The following table provides data concerning the company%u2019s costs:

Fixed Cost

per Month

Cost per

Car Washed

Cleaning supplies			$	0.40
Electricity	$	1,450	$	0.10
Maintenance			$	0.40
Wages and salaries	$	3,700	$	0.40
Depreciation	$	6,900
Rent	$	2,100
Administrative expenses	$	2,000	$	0.05

For example, electricity costs are $1,450 per month plus $0.10 per car washed. The company expects to wash 9,500 cars in October and to collect an average of $4.90 per car washed. The company actually washed 9,620 cars in October.

The actual operating results for October appear below:

Auto Lavage Income Statement For the Month Ended October 31
Actual cars washed		9,620
Revenue	$	48,453

Expenses:
Cleaning supplies		4,228
Electricity		2,377
Maintenance		4,108
Wages and salaries		7,878
Depreciation		6,900
Rent		2,300
Administrative expenses		2,326

Total expense		30,117

Net operating income	$	18,336

Required:

Prepare a report showing revenue and spending variances. (Input all amounts as positive values. Leave no cells blank be certain to enter “0” wherever required. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance).)

Auto Lavage Revenue and Spending Variances For the Month Ended October 31
	Flexible Budget	Actual Results	Revenue and Spending Variances
Revenue	$	$	$	(Click to select)NoneFU

Expenses:
Cleaning supplies				(Click to select)UFNone
Electricity				(Click to select)FNoneU
Maintenance				(Click to select)NoneUF
Wages and salaries				(Click to select)UNoneF
Depreciation				(Click to select)UFNone
Rent				(Click to select)NoneFU
Administrative expenses				(Click to select)FNoneU

Total expense				(Click to select)NoneFU

Net operating income	$	$	$	(Click to select)FUNone

accounting 449980

Aug 29, 2021 | Uncategorized

1. At Flint Company’s break even point of 9,600 units, fixed costs are $249,600 and variable costs are $633,600 in total. The unit sales price is:

a. $66.

b. $26.

c. $40.

d. $92.

e. $118.

2. Conan Company has total fixed costs of $119,000. Its product sells for $59 per unit and variable costs amount to $45 per unit. Next year Conan Company wishes to earn a pretax income that equals 35% of fixed costs. How many units must be sold to achieve this target income level?

a. 7,636.

b. 41,650.

c. 11,475.

d. 53,599.

e. 2,975.

3.

The budgeted income statement presented below is for Griffith Corporation for the coming fiscal year. If Griffith Corporation is able to achieve the budgeted level of sales, its margin of by Text Enhance” name=”_GPLITA_0″>safety in dollars would be (Do not round intermediate calculations):

by Text Enhance” name=”_GPLITA_0″>

a. $263,235.

b. $291,429.

c. $249,165.

d. $151,000.

e. $229,714.

Sales (61,000 units)		$1,464,000
Costs:
Direct materials	$764,800
Direct labor	241,000
Fixed factory overhead	105,000
Variable factory overhead	151,000
Fixed marketing costs	111,000
Variable marketing costs	51,000	1,423,800

Pretax income		$40,200

help with 2 accounting questions manufacturing costs clasifications 449985

Aug 29, 2021 | Uncategorized

1. The following cost items relate to the Brock Company. Classify each cost as a variable cost, a fixed cost, or a mixed cost by placing an X in the appropriate column. Each cost should be evaluated in terms of the volume of units of finished products produced. Also indicate with an X for each item if it is a product cost or a period cost.

	Variable, Fixed, or Mixed Cost?			Product or period cost
Cost Item	Variable	Fixed	Mixed	Product	Period
Executive Salarty
Direct Labor
Direct Materials
Depreciation of Manufacturing Equipment
Indirect Labor
Factory Utilities
Delivery expense
Televsion advertising
Indirect Materials

2. For each item shown below, classify it as a product cost or a period cost, by placing an X in the appropriate column. For each item that is a product cost, also indicate whether it is a direct cost or an indirect cost with respect to a unit of finished product.

	Product or period cost?		Direct or Inddirect Cost
Cost Item	Product	Period	Direct	Indirect
Administrative Salaries
Direct Labor
Advertising
Property tax on the factory
factory maintenance
Direct Materials
Depreciation on Factory Equipment
Interest Expense
Factory Supplies

section 351 449986

Aug 29, 2021 | Uncategorized

1. Which of the following scenarios will qualify under Section 351 as a nontaxable corporate formation? For those that do not qualify, what requirement of section 351 do they violate?

a. Giner, Mary Ann, and Mrs. Howell form GMH Corp. Ginger contributes memorabilia in exhange for 40% of GMH’s stock, Mary Ann contributes farmland in exhange for 30% of GMH, and Mrs. Howell contributes cash in exchange for the remaining 30%.

b. Cylde founded ABC corp in 1998 and owns all of ABC’s 1,000 share of outstanding stock. In 2000, ABC issues 300 shares of new stock to Bonnie in exchange for land that Bonnie owned. Will Bonnie’s contribution qualify under Section 351?

c. With the same facts as part b, now ABC issues 4,500 shares of new stock to Bonnie in exchange for Bonnie’s land.

d. Bert and Ernie form Duckie Corp. in late 1999. Bert contributes $10,000 cash in exchange for 60% pf Duckie’s stock; Ernie contributes services in exchange for the remaining 40% of Duckie.

fast help please managerial accounting 449991

Aug 29, 2021 | Uncategorized

1. In the income statement of a manufacturing company, what replaces purchases in the cost of goods section of a retail company?

a.finished goods

b. cost of merchandise available

c. cost of gods manufactured

d. work in process completed

2. Compute conversion costs given the following data: Direct Materials, $452,700; Direct Labor, $186,300; Factory Overhead, $175,600, Selling Expense $45,290

a. $639,000

b. $175,600

c. $816,600

d. $361,900

3. The cost f a manufactured product generally consists of which of the following costs?

a. direct materials cost and factory overhead cost

b. direct labor cost and factory overhead cost

c. direct labor cost, direct materials costs, and factory overhead cost

direct materials cost and direct labor cost

4. what is the purpose of the Statement of Cost of Goods anufactured?

a. to determine the ending materials inventory

b. to determine the ending work in process inventory

c. to determine the amounts trasferred to finished goods

d. all of the answers are true

5, One on the following will not befound on the balance sheet of a manufacturin company.

a. cost of goods sold

b. materials

c. work in process

d. finished goods

accounting question 449992

Aug 29, 2021 | Uncategorized

1. Jasper Inc. has a December 31 year end.

a. Current assets are $30 million.

b. Current accrued liabilities are $9 million.

c. Short term debt at December 31 is $4 million. The treasurer has indicated he intends to get this debt refinanced before its due date in September, but it is unlikely to happen before the financial statements are issued.

d. Long term debt A of $4 million has equal principal payments over the next four years.

e. Long term debt B is due in three years and has a principal balance of $6 million. The treasurer discovered a debt covenant violation in November and a waiver was obtained in December.

f. Long term debt C is due in five years and has a principal balance of $5 million. The treasurer discovered a debt covenant violation in December and a waiver was obtained during the first week of January, prior to issuing the financial statements..

g. A provision must be established for a lawsuit that is expected to be settled sometime within the next year. The settlement range is between $ 6 million to $10 million with no one amount being a better estimate at this point in time.

Based on the following financial information, what should the calculation of the current ratio (current assets/current liabilities) be using US GAAP and IFRS?

quick help please managerial accounting 450001

Aug 29, 2021 | Uncategorized

1. In order to be useful to managers, management accounting reports should possess all of the following characteristics EXCEPT:

a. provide objective measures of past operations and subjective estimates about future decisions
b. be prepared in accordance with generally accepted accounting principles
c. be provided at any time management needs information
d. be prepared to report information for any unit of the business to support decision making

2. Which of the following is most associated with managerial accounting?

a. must follow GAAP

b. may rely on estimates and forecasts

c. is prepared for users outside the organization

d. always reports onthe entire entity

3. Conversion costs are

a. direct materials and direct labor

b. direct materials and factory overhead

c. factory overhead and direct labor

d. direct materials and indirect labor

4. Which of the following is an example of dirct labor cost for an airplane manufacturer?

a. cost of oil lubricants for factory machinery

b. cost of wages of assembly worker

c. salary of plant supervisor

d.cost of jet engines

5. prime costs are

a. direct materials and factory overhead

b. direct materials and direct labor

c. direct labor and factory overhead

d. period costs and factory overhead

accounting 450008

Aug 29, 2021 | Uncategorized

A partnership began its first year with the following capital balances:Adrian, capital ………26,000 Brian, capital………….52,000 Charles, capital……..117,000 David, capital………..156,000 Edgar acquired a 20% interest in the partnership by contributing a total of $71,500 directly to the other four partners. Goodwill is to be recorded. Profits and losses have previously been split according to the following percentages: Adrian, 15%, Brian, 35%, Charles, 30% and David, 20%. After Edgar made his investment, what was Charles’ capital balance? Answer

		117,000
		118,950
		95,160
		71,500
		125,840

help please 450010

Aug 29, 2021 | Uncategorized

1.)
Products Alpha and Beta are joint products. The joint production cost of the products is $800. Alpha has a market value of $400 at the split off point. If Alpha is further processed at an additional cost of $600, its market value is $1,400. Product Beta has a market value of $1,200 at the split off point. If Product Beta is further processed at an additional cost of $300, its market value is $1,400. Using the relative sales value method, calculate the joint product cost that would be allocated to Alpha and Beta. How do you know if one of the products should be further processed?

2.)A company must incur annual fixed costs of $2,000,000 and variable costs of $300 per unit and estimates that it can sell 20,000 pumps annually and marks up cost by 30 percent. Using cost plus pricing, what is the cost per unit and the price? What are advantages and disadvantages of cost plus pricing?

income tax accounting 450019

Aug 29, 2021 | Uncategorized

1. Scot and Vidia, married taxpayers, earn $92,000 in taxable income and $5,000 in interest from an investment in City of Tampa bonds. (Use the U.S. tax rate schedule). (Do not round intermediate calculations. Round your answer to 2 decimal places.)

a. If Scot and Vidia earn an additional $60,500 of taxable income, what is their marginal tax rate on this income?

b. How would your answer differ if they, instead, had $60,500 of additional deductions?

2. Melinda invests $200,000 in a City of Heflin bond that pays 6 percent interest. Alternatively, Melinda could have invested the $200,000 in a bond recently issued by Surething Inc., that pays 8 percent interest with similar risk and other nontax characteristics to the City of Heflin bond. Assume Melinda’s marginal tax rate is 25 percent. (Leave no cells blank be sure to enter “0” wherever required. )

a. What is her after tax rate of return for the City of Heflin bond?

b. How much explicit tax does Melinda pay on the City of Heflin bond?

c. How much implicit tax does she pay on the City of Heflin bond?

d. How much explicit tax would she have paid on the Surething Inc., bond?

e. What is her after tax rate of return on the Surething Inc. bond?

3. Song earns $330,000 taxable income as an interior designer and is taxed at an average rate of 20 percent (i.e., $66,000 of tax).

If Congress increases theincome tax rate such that Song’s average tax rate increases from 20 percent to 25 percent, how much more income tax will she pay assuming that the income effect is descriptive? (Round your intermediate calculations and final answer to 2 decimal places.)

Income Tax _____________________

4. Congress would like to increase tax revenues by 6.5 percent. Assume that the average taxpayer in the United States earns $57,000 and pays an average tax rate of 20 percent.

If the income effect is in effect for all taxpayers, what average tax rate will result in a 6.5 percent increase in tax revenues? (Round your answer to 2 decimal places.)

Average Tax Rate ________________

intermediate accounting 450022

Aug 29, 2021 | Uncategorized

1. (TCO 1) The International Accounting Standards Board: (Points : 5)

was the predecessor to the IASC.
can overrule the FASB when their policies disagree.
promotes the use of high quality, understandable global accounting standards.
has its headquarters in Geneva.

2. (TCO 2) The FASB’s conceptual framework’s qualitative characteristics of accounting information includes: (Points : 5)

full disclosure.
relevance.
going concern.
historical cost.

3. (TCO 3) Mary Parker Co. invested $15,000 in ABC Corporation and received capital stock in exchange. Mary Parker Co.’s journal entry to record this transaction would include a: (Points : 5)

debit to investments.
credit to retained earnings.
credit to capital stock.
debit to expense.

4. (TCO 3) When a tenant makes an end of period adjusting entry credit to the “Prepaid rent” account: (Points : 5)

(s)he usually debits cash.
(s)he usually debits an expense account.
(s)he debits a liability account.
(s)he does none of the above.

5. (TCO 3) Temporary accounts would not include: (Points : 5)

salaries payable.
depreciation expense.
supplies expense.
cost of goods sold.

6. (TCO 4) Notes payable: (Points : 5)

is a current liability account.
usually has a debit balance.
is a non current liability account.
cannot determine its classification without additional information.

7. (TCO 4) Which of the following is not a financing ratio? (Points : 5)

Time interest earned ratio.
The debt to equity ratio.
The current ratio.
All of the above are financing ratios.

8. (TCO 5) Popson Inc. incurred a material loss which was not unusual in character, but was clearly an infrequent occurrence. This loss should be reported as: (Points : 5)

an extraordinary loss.
a separate line item between income from continuing operations and income from discontinued operations.
a separate line item within income from continuing operations.
a separate line item in the retained earnings statement.

9. (TCO 5) A voluntary change in accounting principle is accounted for by: (Points : 5)

a cumulative effect on income in the year of the change.
a retrospective reporting of all comparative financial statements shown.
a prior period adjustment.
a separate line component of income.

10. (TCO 5) In the operating activities section of the statement of cash flows, we start with net income: (Points : 5)

in the direct method.
in the indirect method.
in both the direct and the indirect methods.
in neither the direct nor the indirect methods.

11. (TCO 5) Each of the following would be reported as items of other comprehensive income except: (Points : 5)

foreign currency translation gains.
unrealized gains on investments accounted for as securities available for sale.
deferred gains from derivatives.
gains from the sale of equipment.

12. (TCO 5) Expenses in an income statement prepared under International Financial Reporting Standards: (Points : 5)

must be classified by function.
must be classified by natural description.
can be classified either by function or by natural description.
none of the above is correct.

13. (TCO 4) Current assets include cash and all other assets expected to become cash or be consumed: (Points : 5)

within one year.
within one operating cycle.
within one year or one operating cycle, whichever is shorter.
within one year or one operating cycle, whichever is longer.

14. (TCO 4) Which of the following groups is not among the external users for whom financial statements are prepared? (Points : 5)

Customers
Suppliers
Employees
All of the above are external users of financial statements.

well 450023

Aug 29, 2021 | Uncategorized

1. (TCO E) For federal tax purposes, the gain from the sale of stocks and bonds is classified as: (Points : 5)

active income.
portfolio income.
passive income.
None of the above

2. (TCO D) How does the Code define a capital asset? (Points : 5)

As inventory carried by the taxpayer’s business
As property used by the taxpayer in his/her business, which is depreciable
As intangible property owned by the taxpayer, regardless of whether used in his/her business or not
The Code does not define what a capital asset is, only what it is not.

3. (TCO H) Gary and Tracy file a joint return for the 2012 tax year. Their adjusted gross income is $65,000. They had net investment income of $9,000. In 2012, they had the following interest expenses:

Personal credit card interest: $3,000
Home mortgage interest: $8,000
Interest paid on qualified education loans: $2,000
Investment interest (on loans used to buy stocks): $10,000

What is the interest deduction for Gary and Tracy for the 2012 tax year? (Points : 5)

$19,000
$8,000
$12,000
$18,000

4. (TCO B) Unreimbursed expenses of employees are considered to be deductions: (Points : 5)

for AGI.
from AGI.
for or from AGI, depending on the type of expense.
None of the above

5. (TCO A) Miscellaneous itemized deductions are deductible only: (Points : 5)

to the extent that in aggregate, they exceed two percent of AGI.
if the taxpayer takes the standard deduction.
if they fall below the limit on standard itemized deductions.
None of the above

6. (TCO E) Josh sold a piece of business equipment that had an adjusted basis to him of $50,000. In return for the equipment, Josh received $60,000 cash and a painting with a fair market value of $20,000 from the buyer. The buyer also assumed Josh’s $25,000 loan on the equipment. Josh paid $5,000 in selling expenses. What is the amount of Josh’s gain on the sale? (Points : 5)

$50,000
$105,000
$75,000
$60,000

7. (TCO I) Gary and Gerdy Gray purchased a home for $125,000 on September 15, 2010. On October 7, 2011 they were divorced, and as part of the divorce agreement, the home was transferred to Gerda, who sold the home on October 18, 2012 for $350,000. How much can Gerda exclude? (Points : 5)

$350,000
$250,000
$225,000
$0

8. (TCO I) Under the accrual method of accounting, income is generally recorded when:(Points : 5)

the liability arises.
payment is received.
the expense is actually incurred.
revenue is earned.

9. (TCO D) Sean, a calendar year taxpayer, purchased stock on October 18, 2011 for $7,000. The stock became worthless on March 10, 2012. What is Sean’s loss in 2012?(Points : 5)

$7,000 long term capital loss
$7,000 short term capital loss
No loss
$7,000 itemized deduction for investments

10. (TCO A) Which of the following is not permitted to “practice before the IRS”? (Points : 5)

Attorney
CPA
Bookkeeping service
Enrolled agent

11. (TCO F) Trade or business expenses are only deductible if they are: (Points : 5)

necessary and ordinary.
reasonable in amount.
not capital in nature.
All of the above

12. (TCO A) The art of using existing tax laws to pay the least amount of tax legally possible is known as: (Points : 5)

tax evasion.
tax avoidance.
tax elusion.
None of the above

13. (TCO C) In return for $1,000, Mr. Hand cancels Mr. Sandwich’s debt of $4,000. The cancellation is not a gift, and Mr. Sandwich is neither insolvent nor bankrupt. Which of the following statements is correct? (Points : 5)

Mr. Hand has $1,000 taxable income.
Mr. Sandwich has $3,000 of taxable income.
Mr. Sandwich has $4,000 of taxable income.
Neither Mr. Hand nor Mr. Sandwich has any taxable income from this transaction.

14. (TCO B) Mark Mayer, a cash basis taxpayer, leased property on June 1, 2012 to Perry Purly at $325 a month. Perry paid Mark $325 as a security deposit, which will be returned at the end of the lease. In addition, Perry paid $650 in advance rent, which is to be applied as rent to the last two months in the lease term. The lease is to run for a two year period. What is Mark’s rental income for 2012? (Points : 5)

$1,950
$2,275
$2,600
$2,925

15. (TCO G) On June 3, 2012, Leon Wren, an electrician, was injured in an accident during the course of his employment. As a result of injuries sustained, he received the following payments during 2012:

Damages for personal injuries: $8,000
Worker’s compensation: $3,000
Reimbursement from his employer’s accident and health plan for medical expenses paid by Wren: $1,200

The amount to be included in Wren’s 2012 gross income should be: (Points : 5)

$0.
$1,200.
$3,000.
$12,200.

16. (TCO F) Hobby expenditures are deductible to the extent of: (Points : 5)

total individual gross income.
hobby gross income.
trade or business gross income.
nonbusiness gross income.

managerial accounting questions 450024

Aug 29, 2021 | Uncategorized

1. Theh following information was taken from the annual manufacturing overhead cost budget of Fergie manufacturing

Variable manufacturing overhead costs: $92,000

Fixed Manufacturing overhead costs: 55,440

Normal Production level in labor hours: 30,800

Normal Production level in units: 5,775

Standard labor hours per unit: 4

During the year, 5,600 units were produced, 18,340 hours were worked, and the actual manufacturing overhead was $151,200. Actual fixed manufacturing overhead costs equaled budgeted fixed manufacturing overhead costs. Overhead is applied on the basis of direct labor horus. Fergie’s total overhead variance is:

a. $1,680

b. $6,160

c. $7,840

d. $22,400

2. Using the information above what is Fergie’s controllable overhead variance?

a. $1,680

b. $6,160

c. $7,840

d. $22,400

cash flow 450032

Aug 29, 2021 | Uncategorized

1.If Tucker, Inc.’s net sales decreased from $90,000 in year 1 to $45,000 in year 2 and its cost of goods sold decreased from $30,000 in year 1 to $20,000 in year 2, the vertical analysis based on sales would should the following for cost of goods sold for the two periods (rounded to nearest tenth of a percent)

a. 44.4% and 33.3%

B.33.3% and 44.4%

C. 300% and 225%

D. 225% and 300%

2. If Net Sales at Town and Country, Inc. increased from $40,000 to $60,000 and its cost of goods sold increased from $20,000 to $40,000 , the vertical analysis based on net salles would show the following percentages for cost of goods sold

A. 50% and 67%

B. 40% and 20%

C. 10% and 30%

D. 67% and 40%

governmental not for profit 450034

Aug 29, 2021 | Uncategorized

1. What are some of the ways accounting information can assist citizens in grading their government?

2. What is meant by the term GAAP? What is the relationship between GAAFR and GAAP?

3. What criteria would you us to determine whether a not for profit university is covered by GASB or FASB accounting standards?

4. If you needed information about a governmental accounting topic not covered by GASB Statements, what other sources of information could you turn to for guidance?

5. What are the three key factors in the governmental environment, as described in GASB Concepts Statement No. 1, that influence accounting and reporting standards?

6. Describe the major differences between governments and corporations that create the need for different accounting standards?

Answers should be 3 4 sentences and at the MBA level

accy help please 450035

Aug 29, 2021 | Uncategorized

10. Crane Company makes four products in a single facility. Data concerning these products appear below:

Product

A B C D

Selling price per unit $35.30 $30.20 $20.80 $26.00

Variable manuf. cost per unit $16.50 $15.80 $7.90 $8.50

Variable selling cost per unit $3.80 $1.60 $1.90 $3.30

Milling machine minutes per unit 3.30 1.70 2.10 2.50

Monthly demand in units 4,000 1,000 3,000 1,000

The milling machines are potentially the constraint in the production facility. A total of 22,600 minutes are available per month on these machines. Which product makes the MOST profitable use of the milling machines?

Determine the order of production and the amount of each product to be produced given the time available and the demand for each product.

What is the total contribution margin that can be earned given the order of production & demand?

financial accounting 450040

Aug 29, 2021 | Uncategorized

17. Corresponds to CLO 5(a) Lennox

Corporation purchased a new delivery truck for 35,000. The sales

taxes are $2,700. The logo is painted on the side of the truck for

$800. The truck’s annual license is $200. Annual insurance on the

truck is $1,300. What should Lennox record as the cost of the new

truck? (Points : 5)

$40,000

$38,500

$37,700

$35,000

18. Corresponds to CLO 5(b) On April

1, 2013, Ballard Corporation purchased equipment for $65,000. It is

estimated that the equipment will have a $5,000 salvage value at

the end of its 5 year useful life. If Ballard uses the

straight line method of depreciation, what is the accumulated

depreciation at December 31, 2013? (Points : 5)

$13,000

$12,000

$9,750

$9,000

19. Corresponds to CLO 5(c) Tyree

Company purchased equipment with a cost of $90,000 and an estimated

salvage value of $18,000. The equipment is expected to produce

120,000 units over its estimated useful life of 10 years. If Tyree

uses the units of activity method, what is the depreciation cost

per unit to be used in calculating depreciation? (Points : 5)

$1.67

$0.75

$0.60

$1.33

20. Corresponds to CLO 5(d) Kerns

Company purchased equipment with a cost of $200,000 and an

estimated salvage value of $10,000. The equipment has an estimated

useful life of 10 years. If Kerns uses the double declining balance

method, what is the annual depreciation rate to be used in

calculating depreciation? (Points : 5)

5%

10%

20%

40%

21. Corresponds to CLO 6(a) Marshall

Machinery made a sale for $80,000 on January 6. The customer is

sent a statement on January 25 and payment is received on February

20. Marshall prepares January’s monthly internal financial

statements on February 15. Marshall follows GAAP and applies the

revenue recognition principle. When is the $80,000 considered to be

earned? (Points : 5)

February

20

February

15

January

25

January

6

22. Corresponds to CLO 6(b) Mann

Corporation’s employees worked overtime to complete an order that

is sold on July 27. The office sends a statement to the customer on

August 15, and payment is received on September 5. Mann follows

GAAP. In what month should the overtime wages be expensed? (Points

: 5)

either

July or August, depending on when the pay period ends

September

August

July

23. Corresponds to CLO 6(c) Sight

Company had the following transactions during 2013: sales of $6,000

on account; collected $1,800 for services to be performed in 2014;

paid $4,300 cash for 2013 salaries; purchased airline tickets for

$500 in December for a trip to take place in 2014. What is Sight’s

2013 net income using accrual accounting? (Points : 5)

$1,700

$1,200

$3,500

$3,000

24. Corresponds to CLO 6(d) Lyme

Corporation had the following transactions during 2013: sales of

$8,000 on account; collected $4,500 for services to be performed in

2014; paid $3,000 cash for 2013 salaries; paid $400 for airline

tickets for a trip to take place in 2014. What is Lyme’s 2013 net

income using cash basis accounting? (Points : 5)

$4,600

$9,100

$1,100

$1,500

25. Corresponds to CLO 7(a) Ping

Sports Company purchases $1,000 of merchandise on credit. Using the

perpetual inventory approach, the journal entry to record this

transaction would be: (Points : 5)

debit:

Inventory $1,000; credit: Accounts Payable $1,000

debit:

Accounts Payable $1,000; credit: Inventory $1,000

debit:

Accounts Payable $1,000; credit: Purchases $1,000

debit:

Purchases $1,000; credit: Accounts Payable $1,000

26. Corresponds to CLO 7(b) Gardner

Corporation had sales of $2,400 on account on January 9, 2013.

Gardner uses the periodic inventory method. The journal entry to

record this transaction would include: (Points : 5)

a

debit to Sales Revenue and a credit to Accounts Receivable.

a

debit to Accounts Receivable, a credit to Sales Revenue, a debit to

Cost of Goods Sold, and a credit to Inventory.

a

debit to Accounts Receivable and a credit to Sales Revenue.

a

debit to Accounts Receivable, a credit to Sales Revenue, a debit to

Cost of Goods Sold, and a credit to Purchases.

27. Corresponds to CLO 7(c) Rupert

Hobby’s accounting records show the following for the year ending

December 31, 2014: Purchase DiscountsAf?cAc‚¬A?¦$15,600;

Freight inAf?cAc‚¬A?¦$14,000;

PurchasesAf?cAc‚¬A?¦$540,500; Beginning

InventoryAf?cAc‚¬A?¦$54,200; Ending

InventoryAf?cAc‚¬A?¦$58,600; Purchase

ReturnsAf?cAc‚¬A?¦$20,000. Using the periodic inventory

system, what is the cost of goods sold? (Points : 5)

$573,100

$500,500

$536,100

$514,500

28. Corresponds to CLO 7(d) Bay

Company sold $100,000 of merchandise in the month of April, 2013.

Returns that month totaled $5,000. Bay Company uses the periodic

method to determine ending inventory each December 31. For interim

financial statements, cost of goods sold is estimated based on the

previous year’s gross profit rate. If Bay Company’s gross profit

rate for 2012 was 40%, what is the cost of goods sold for the month

of April? (Points : 5)

$60,000

$57,000

$40,000

$38,000

29. Corresponds to CLO 8(a) We Love

Pets, Inc. has the following inventory data: January 1, beginning

inventory of 50 units at $25; January 10, purchases of 70 units at

$27; January 25, purchases of 40 units at $28. A physical count of

inventory on January 31 reveals that there are 45 units on hand.

Using the FIFO inventory method, cost of goods sold for January is

(Points : 5)

$3,135

$3,005

$2,875

$1,255

30. Corresponds to CLO 8(b) Party

Retailers has the following inventory data: May 1, beginning

inventory of 200 units at $10; May 14, purchases of 300 units at

$12; May 23, purchases of 250 units at $15. A physical count of

inventory on May 31 reveals that there are 225 units on hand. Using

the LIFO inventory method, ending inventory for May is (Points :

5)

$2,300

$2,250

$7,050

$3,375

31. Corresponds to CLO 8(c) Halting

Corporation has the following inventory data: September 1,

beginning inventory of 430 units at $11; September 8, purchases of

350 units at $12; September 21, purchases of 460 units at $14. A

physical count of inventory on September 30 reveals that there are

400 units on hand. Using the weighted average inventory method,

rounding the unit cost to the nearest penny, what is cost of goods

sold for September? (Points : 5)

$10,357

$4,960

$10,416

$4,932

32. Corresponds to CLO 8(d) Unleash

Corporation is a retailer operating in an industry currently

experiencing high inflation. Unleash wants to show the highest cost

of goods sold possible in order to reduce the company’s income tax

liability. Which inventory costing method should Unleash use?

(Points : 5)

FIFO

because cost of goods sold represents the earliest costs.

Average

because cost of goods sold will represent an average amount.

Specific

identification because it involves the actual costs.

LIFO

because cost of goods sold represents the latest costs.

33. Corresponds to CLO 9(a) The

following balance sheet and income statement data is available for

Gold River Corporation: Current

assetsAf?cAc‚¬A?¦$205,000; Total

assetsAf?cAc‚¬A?¦$520,000; Net

incomeAf?cAc‚¬A?¦$345,000; Current

liabilitiesAf?cAc‚¬A?¦$125,000; Total

liabilitiesAf?cAc‚¬A?¦$250,000; Stockholders’

equityAf?cAc‚¬A?¦$270,000; Average common shares

outstandingAf?cAc‚¬A?¦ 10,000. What is Gold River’s

current ratio? (Points : 5)

2.08

1.64

1.56

0.82

34. Corresponds to CLO 9(b) The

following balance sheet data is available for Pinpoint Products:

Current assetsAf?cAc‚¬A?¦$25,000; Property, plant, and

equipment,Af?cAc‚¬A?¦$100,000Af?cAc‚¬A?¦Other

assetsAf?cAc‚¬A?¦$15,000; Current

liabilitiesAf?cAc‚¬A?¦$15,000; Long term

liabilitiesAf?cAc‚¬A?¦$48,000; Stockholders’

equityAf?cAc‚¬A?¦$77,000; Average common shares

outstandingAf?cAc‚¬A?¦ 10,000. What is Pinpoint’s debt to

total assets, shown as a percentage? (Points : 5)

45%

60%

40%

81%

35. Corresponds to CLO 9(c) The

following balance sheet and income statement data is available for

Frame Manufacturing: Total assetsAf?cAc‚¬A?¦$420,000;

Total liabilitiesAf?cAc‚¬A?¦$300,000; Stockholders’

equityAf?cAc‚¬A?¦$120,000; Gross

profitAf?cAc‚¬A?¦$54,000; Net

incomeAf?cAc‚¬A?¦$42,000; Average common shares

outstandingAf?cAc‚¬A?¦ 12,000. What is Frame

Manufacturing’s earnings per share? (Points : 5)

$10.00

$3.50

$1.60

$4.50

36. Corresponds to CLO 9(d) The

following financial information is available for Maroon

Corporation: Sales revenueAf?cAc‚¬A?¦$200,000; Cost of

goods soldAf?cAc‚¬A?¦$120,000; Operating

expensesAf?cAc‚¬A?¦$40,000. What is Maroon’s profit

margin ratio, shown as a percentage? (Points : 5)

20%

80%

60%

40%

37. Corresponds to CLO 10(a) Which of

the following is not true about a company’s system of internal

controls? (Points : 5)

Internal

control procedures are designed to safeguard assets from employee

theft.

Internal

control measures can eliminate all irregularities in the accounting

process.

Internal

controls can be rendered ineffective by employee collusion.

Large

companies often assign internal auditors to continuously evaluate

the effectiveness of the company’s internal control

systems.

38. Corresponds to CLO 10(b) At Speedy

Market, three cashiers handle cash sales from the same cash

register drawer. Which of the following internal control principles

does this violate? (Points : 5)

Segregation

of duties

Physical

controls

Human

resource controls

Establishment

of responsibility

39. Corresponds to CLO 10(c) At Stone

Pool Supplies, one person is responsible for the related activities

of ordering merchandise, receiving goods, and paying for them.

Which of the following internal control principles does this

violate? (Points : 5)

Physical

controls

Segregation

of duties

Human

resource controls

Establishment

of responsibility

40. Corresponds to CLO 10(d) At Beauty

Bargains, the employees that handle cash are all bonded. This is an

example of which of the following internal control procedures?

(Points : 5)

Physical

controls

Establishment

of responsibility

Segregation

of duties

Human

resource controls

managerial accounting 450043

Aug 29, 2021 | Uncategorized

1.

Lucky Products markets two computer games: Predator and Runway. A contribution format income statement for a recent month for the two games appears below:

		Predator		Runway		Total
Sales	$	114,000	$	57,000	$	171,000
Variable expenses		28,360		5,840		34,200

Contribution margin	$	85,640	$	51,160		136,800
Fixed expenses						88,080

Net operating income					$	48,720

Required:
1.	Compute the overall contribution margin (CM) ratio for the company. (Omit the “%” sign in your response.)

Overall CM ratio

%

2.	Compute the overall break even point for the company in sales dollars. (Do not round intermediate calculation. Omit the “$” sign in your response.)

Overall break even point

$

3.

Complete the contribution format income statement at break even point for the company showing the appropriate levels of sales for the two products. (Input all amounts as positive values except losses which should be indicated by a minus sign. Leave no cells blank be certain to enter “0” wherever required. Do not round intermediate calculations. Round your answers to the nearest dollar amount. Omit the “$” sign in your response.)

	Predator	Runway	Total
(Click to select) Contribution margin Fixed expenses Variable expenses Sales Net operating income (loss)	$	$	$
(Click to select) Variable expenses Fixed expenses Sales Contribution margin Net operating income (loss)

(Click to select) Net operating income (loss) Sales Fixed expenses Contribution margin Variable expenses	$	$
(Click to select) Net operating income (loss) Contribution margin Sales Fixed expenses Variable expenses

(Click to select) Contribution margin Variable expenses Net operating income (loss) Fixed expenses Sales			$

statement of cash flow direct and indirect method 450044

Aug 29, 2021 | Uncategorized

1.Prepare a statement of cash flows for 2010 using the direct method in the operating activites section…….

2. On the bases of your statement in (1), draft a brief memo to the president to explain why cash decreased during such a profitable year. Include in your explanation any recommendations for inproving the companys cash flow in future years.

Other information is as follows:

a. Dividends of $60,000 were declared and paid during the year.

b. Operating expenses include $50,000 of depreciation.

Aug 29, 2021 | Uncategorized

Compute Net Present Value

Dungan Corporation is evaluating a proposal to purchase a new drill press to replace a less efficient machine presently in use. The cost of the new equipment at time 0, Including delivery and installation, is $200,000. If it is purchased. Dungan will incur costs of $5,000 to remove the present equipment and revamp its facilities. This 5, $30,000 per year. The existing equipment has a book and tax value of $100,000 and a remaining useful life of 10 years. However, the existing equipment can be sold for only $40,000 and is being depreciated for book and tax purposes using the straight line method over its actual life.

Management has provided you with the following comparative manufacturing cost data:

Annual capacity (units)	400,000	400,000
Annual costs:
Labor	$30,000	$25,000
Depreciation	10,000	14,000
Other (all cash)	48,000	20,000
Total annual costs	$88,000	$59,000

The existing equipment is expected to have a salvage value equal to its removal costs at the end of 10 years. The new equipment is expected to have a salvage value of $600,000 at end of 10 years, which will be taxable, and no removal costs. No changes in working capital are required with the purchase of the new equipment. The sales force does not expect any changes in the volume of sales over the next 10 years. The company’s cost of capital is 15 percent, and it tax rate is 45 percent.

Required

Calculate the removal costs of the existing equipment net of tax effects.
Compute the depreciation tax shield.
Compute the forgone tax benefits of the old equipment.
Calculate the cash inflow net of taxes from the sale of the new equipment in year 10.
Calculate the tax benefit arising from the loss on the old equipment.
Compute the annual differential cash flows arising from the investment in year 1 through 10.

Compute the net present value of the project.

using present value techniques to evaluate alternative investment opportunities 449543

Aug 29, 2021 | Uncategorized

Problem 16 16 Using present value techniques to evaluate alternative investment opportunities

Fast Delivery is a small company that transports business packages betweenNew YorkandChicago. It operates a fleet of small vans that moves packages to and from a central depot within each city and uses a common carrier to deliver the packages between the depots in the two cities. Fast Delivery recently acquired approximately $6million of cash capital from it owners, and its president, Don is trying to identify the most profitable way to invest these funds.

1. One manager believes that the money should be used to expand the fleet of city van at a cost of $720.000. He argues that more vans would enable the company to expand its services into new markets, thereby increasing the revenue base. More specifically he expects cash inflow to increase by $280,000 per year. The additional vans are expected to have an average useful life of four years and a combined salvage value of $100,00 Operating the vans will require additional working capital of $40,000 which will be recovered at the end of the fourth year.

2. In contrast, the company chief accountant, believes that the funds should be used to purchased large trucks to deliver the package between the depots in the two cities. The conversion process would produce continuing improvement in operating saving with reductions in cash outflow as the following.

Year 1, $160,000, Year 2, $320,000, Year 3, $400,000, Year 4, $440,000.

The large trucks are expect to cost $800,000 and to have a 4 year useful life ans a $80,000 salvage value. the training cost are expect to amount to $16,000 Fast Delivery management has established a 16 percent desired rate of return.

Required:

a. Determine the net present value of the two investment alternatives

b. Calculate the present value index for each alternative.

c. Indicate which investment alternative you would recommend. Explain your choice.

francis purchased a stock one year ago for 20 00 and it is now worth 24 449561

Aug 29, 2021 | Uncategorized

Francis purchased a stock one year ago for 20.00 and it is now worth 24. The stock paid a dividend of $3 during the year/ What is the stocks rate of return for capital appreciation during the year? Gwen purchased a stock one year agofor 25.00 and it is now worth $31. The stock paid a dividend of $1.50 during the year. What was the stock’s rate of return income during the first year. Gunther earned 62.5 percent return on a stock that he purchased one year ago. The stock is now worth 12.00 and he received a dividend of 1 during the year. How much did Gunther originally pay for the stock? Moshe purchased a stock for 30.00 last year. He found out today that he had a 100 percent return on his investment. Which of the following is true the stock is worth 30 today the stock is worth o today the stock paid no dividends during the year both b and c are true Babs purchased a piece of real estate last year for 85,000. The real estate is now worth 102,000 If Babs needs to have a total return of 25 percent during the year then what is the dollar amount of income that she needed to reach her objective?

ch4 5 please answer with my question 449684

Aug 29, 2021 | Uncategorized

Zins Corporation produces and sells a single product. The company’s contribution format income statement for August appears below:


Sales (2,500 units)	$	255,000
Variable expenses		152,500

Contribution margin		102,500
Fixed expenses		58,750

Net operating income	$	43,750

Required:

Prepare the company’s contribution format income statement assuming that the company sells 3,000 units. (Input all amounts as positive values. Omit the “$” sign in your response.)

Zins Corporation Income Statement
(Click to select) Sales Variable expenses Salary expenses Fixed expenses Income tax expenses	$
(Click to select) Sales Variable expenses Salary expenses Fixed expenses Income tax expenses

(Click to select) Contribution margin Contribution loss
(Click to select) Sales Variable expenses Salary expenses Fixed expenses Income tax expenses

(Click to select) Net operating income Net operating loss	$

alsup consulting sometimes performs services for which it receives payment at the co 449743

Aug 29, 2021 | Uncategorized

Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six months after services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performed. For tax purposes, revenue is reported when fees are collected. Service revenue, collections, and pretax accounting income for 2010–2013 are as follows:

There are no differences between accounting income and taxable income other than the temporary difference described above. The enacted tax rate for each year is 40%.

Required:

1.

Prepare the appropriate journal entry to record Alsup”s 2011 income taxes.

2.

p. 921

Prepare the appropriate journal entry to record Alsup”s 2012 income taxes.

3.

Prepare the appropriate journal entry to record Alsup”s 2013 income taxes.

(Hint: You may find it helpful to prepare a schedule that shows the balances in service revenue receivable at December 31, 2010–2013.)

andretti company has a single product called a dak 449787

Aug 29, 2021 | Uncategorized

Andretti Company has a single product called a Dak. The company normally produces and sells 96,000 Daks each year at a selling price of $49 per unit. The company”s unit costs at this level of activity are given below: Direct materials$9.40 Direct labor8.00 Variable manufacturing overhead3.40 Fixed manufacturing overhead7.00 ($672,000 total) Variable selling expenses2.00 Fixed selling expenses6.00 ($576,000 total) Total cost per unit$35.80 ________________________________________ A number of questions relating to the production and sale of Daks follow. Each question is independent. Requirement 1: (a)Assume that Andretti Company has sufficient capacity to produce 124,800 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its sales by 30% above the present 96,000 units each year if it were willing to increase the fixed selling expenses by $127,000. Compute the Incremental net operating income

barbow enterprises inc is considering an expansion in their operations 449835

Aug 29, 2021 | Uncategorized

Barbow Enterprises, Inc., is considering an expansion in their operations. One of the first items they want to examine is their cost of capital. According to the accounting department, the following items and their respective costs have been identified:

%u2022 The cost of Common Equity: 15%

%u2022 The before tax cost of debt: 12%

%u2022 No Preferred stock

They have also calculated the marginal tax rate to be 40% and the stock sells at its book value.

Barbow Enterprises Inc.

Balance Sheet

Assets Liabilities and Owners” Equity

Cash $240 Long Term Debt $2,304

Accounts Receivable 480 Equity 3,456

Inventories 720

Net P&E 4,320

Total Assets $5,760 Total Liabilities and owners” Equity $5,760

Required:

Calculate Barbow%u2019s after tax weighted average cost of capital, using the data in the balance sheet above.

campbell manufacturing intends to start business on january 1 2014 449870

Aug 29, 2021 | Uncategorized

Campbell Manufacturing intends to start business on January 1, 2014. Production plans for the first four months of operations are as follows:

January	20,000 units
February	50,000 units
March	70,000 units
April	70,000 units

Each unit requires two pounds of material. The firm would like to end each month with enough raw material to cover 25 percent of the following month’s production needs. Raw material costs $ 7 per pound. Management pays for 40 percent of purchases in the month of purchase and receives a 10 percent discount for these payments. The remaining purchases are paid in the following month, with no discount available.

a. Prepare a purchases budget for the first quarter of 2014 in units, in total, and in dollars.

b. Determine the budgeted payments for purchases of raw material for each of the first three months of operations and for the quarter in total.

c. Where in the budgeted financial statements do the purchase discounts appear?

too many of the numbers are incorrect can you please double check the work 449945

Aug 29, 2021 | Uncategorized

. Prepare a monthly cash budget and supporting schedules for March, April, and May. Input all amounts as positive values except overall cash decrease and deficiency which should be indicated with a minus sign. Assume 360 days per year for interest calculations.

Dash Shoes Inc.

Cash Budget

For the Three Months Ending May 31, 2012

March

April

May

Estimated cash receipts from:

Cash sales

$ Correct 9 of Item 1

$ Correct 10 of Item 1

$ Correct 11 of Item 1

Collection of accounts receivable

Correct 13 of Item 1

Correct 14 of Item 1

Correct 15 of Item 1

Dividends

Correct 17 of Item 1

Total cash receipts

$ Correct 19 of Item 1

$ Correct 20 of Item 1

$ Correct 21 of Item 1

Estimated cash payments for:

Manufacturing costs

$ Correct 24 of Item 1

$ Correct 25 of Item 1

$ Correct 26 of Item 1

Selling and administrative expenses

Correct 28 of Item 1

Correct 29 of Item 1

Correct 30 of Item 1

Capital expenditures

Correct 32 of Item 1

Other purposes:

Note payable (including interest)

Correct 35 of Item 1

Income tax

Correct 37 of Item 1

Dividends

Correct 39 of Item 1

Total cash payments

$ Correct 41 of Item 1

$ Correct 42 of Item 1

$ Correct 43 of Item 1

Cash increase or (decrease)

$ Correct 45 of Item 1

$ Correct 46 of Item 1

$ Correct 47 of Item 1

Cash balance at beginning of month

Correct 49 of Item 1

Correct 50 of Item 1

Correct 51 of Item 1

Cash balance at end of month

$ Correct 53 of Item 1

$ Correct 54 of Item 1

$ Correct 55 of Item 1

Minimum cash balance

Correct 57 of Item 1

Correct 58 of Item 1

Correct 59 of Item 1

Excess or (deficiency)

$ Correct 61 of Item 1

$ Correct 62 of Item 1

$

rfs is considering adding 449950

Aug 29, 2021 | Uncategorized

A. RFS is considering adding a new product line, Home Equity Loans, which RFS believes will make the mortgage business more attractive to their customers. RFS research shows they could originate 500 of these loans at $230 each. RFS would have to process a 3 page application, obtain 2 credit referrals from outside credit agencies, do 2.5 hours of loan analysis, and complete a 4 hour closing process, with 85% of applications being closed. RFS believes existing resources in the company can handle the additional application processing and loan analysis work. Using the cost driver rates you developed in part A, compute the estimated incremental and fully loaded profitability of this new line of business for RFS. Note: incremental analysis would only include the incremental costs that result from adding home equity loans.

accounting help please 449958

Aug 29, 2021 | Uncategorized

1. Not adjusting the amounts reported in the financial statements for inflation is an example of which basic principle of accounting?

a. Economic entity

b. going concern

c. historical cost

d. full disclosure

2. Which of the following is not a benefit associated with the FASB Conceptual Framework Project?

a. a conceptual framework should increase financial statment users understanding of and confidence in financial reporting

b. Practical problems should be more quickly solvable by reference to an existing conceptual framework.

c. a coherent set of accounting stndards and rules should result

d. business entities will need far less assistance from accountants bcuase the fnancial reporting process will be quie easy to apply

3. financial information does not demonstrate consistency when

a. firms in the same industry use different accounting methods to account for te same type of transaction

b.acompany canges its estimate of the salvage value of a fixed asset

c. a company fails to adjust its financial statements for changes in the value of the measurig unit

d. acompany changes its inventory mehod every few years in order to maximize reported income

4. what is a purpose of having a conceptual framework

a. to enable the profession to morequickly solve emerging practical problems

b. to proide a foundation from whch to build more useful standards

c. neither a or b

d. both a and b

5. During the lifetime of an entity, accountants produce financial statements at arbitrary points in time in accordance with which basic accounting concept?

a. cost constraint

b. periodicity assumption

c. conservatsm constraint

d. expense recognition principle

i have only 1 hour to answer these please help if you can only 10 questions 449962

Aug 29, 2021 | Uncategorized

1. A bank reconciliation should be prepared periodically because (Points : 2)

the depositor%u2019s records and the bank%u2019s records are in agreement.
the bank has not recorded all of its transactions.
any differences between the depositor%u2019s records and the bank%u2019s records should be determined, and any errors made by either party should be discovered and corrected.
the bank must make sure that its records are correct.

2. The bank reconciliation (Points : 2)

should be prepared by an employee who records cash transactions.
is part of the internal control system.
is for information purposes only.
is sent to the bank for verification.

3. A firm%u2019s internal control environment is influenced by (Points : 2)

Management%u2019s operating style.
organizational structure.
personnel policies.
all of these.

4. A special cash fund used to make small payments that occur frequently is called a(n) (Points : 2)

operating expenses fund.
change fund.
market fund.
petty cash fund.

5. Which of the following would be added to the balance per books on a bank reconciliation? (Points : 2)

Service charges
Outstanding checks
Deposits in transit
Notes collected by the bank

6. A minimum cash balance required by a bank is called (Points : 2)

cash in bank.
cash equivalent.
compensating balance.
EFT.

7. The Sarbanes Oxley Act of 2002 requires companies and their independent accountants to (Points : 2)

report on the financial activities of the company.
report on any fraud and theft detected in the company.
report on the state of the economy and likelihood of fraud.
report on the effectiveness of the company%u2019s internal controls.

8. Which of the following is NOT defined as cash? (Points : 2)

Coins
Checks
Money orders
Commercial paper

9. Which of the following elements of internal control focuses upon locating weaknesses and improving control effectiveness? (Points : 2)

The control environment
Risk assessment
Control procedures
Monitoring

10. Requiring employees to take annual vacations is part of which element of internal control? (Points : 2)

The control environment
Risk assessment
Control procedures
Monitoring

managerial accounting questions 449967

Aug 29, 2021 | Uncategorized

1. If a company purchases raw materials on account for $19,830 when the standard cost is $18,900, it will

a. debit Materials Price Variance for $930

b. credit Materials Price Variance for $930

c. debit Materials Quantity Variance for $930

d. credit Materials Quantity Variance for $930

2. If a company issues raw materials to production at a cost of $18,900 when the standard cost is $18,300, it will

a. debit Materials Price Variance for $600

b. credit Materials Price Variance for $600

c. debit Materials Quantity Variance for $600

d. credit Materials Quantity Variance for $600

3. If a company incurs direct labor cost of $82,000 when the standard cost is $84,000, it will

a. debit Labor Price Variance for $2,000

b. credit Labor Price Variance for $2,000

c. debit Labor Quantity Variance for $2,000

d. credit Labor Quantity Variance for $2,000

4. If a company assigns factory Labor to production at a cost of $84,000 when standard cost is $80,000, it will:

a. debit Labor Price Variance for $4,000

b. credit Labor Price Variance for $4,000

c. debit Labor Quantity Variance for $4,000

d. credit Labor Quantity Variance for $4,000

5. The overhead variances measure whether overhead costs

Are Effectively Managed Were Used Efficiently

a. Controllable Controllable and Volume

b. Controllable Volume

c. Controllable and Volume Controllable

d. Volume Controllable

6. The overhead volume variance is:

a. actual overhead less overhead budgeted for actual hours

b. actual overhead less overhead budgeted for standard hours allowed

c. overhead budgeted for actual hours less applied overhead

d. the fixed overhead rate times the difference between normal capacity hours and standard hours allowed.

7. Budgeted overhead for Cinnabar Industries at normal capacity of 30,000 direct labor hours is $6 per hour variable and $4 per hour fixed. in May, $310,000, of overhead was incurred in working 31,500 hours when 32,000 standard hours were allowed. The overhead controllable variance is:

a. $5,000 favorable

b. $2,000 favorable

c. $10,000 favorable

d. $10,000 unfavorable

accounting 2 help 449969

Aug 29, 2021 | Uncategorized

1.The condensed comparative income statements for Rochelle Corporation follows:

ROCHELLE CORPORATION

Comparative Income Statements

For the Years Ended December 31, 2005 & 2004

2005 2004

Net Sales $1,600,000 $1,485,200

Costs and Expenses

Cost of goods sold $ 908,200 $ 792,400

Selling expenses 206,200 209,200

Administrative expenses 280,600 231,000

Total costs and expenses $1,449,000 $1,232,600

Income from operations $ 151,800 $ 252,600

Interest expense 50,000 40,000

Income before income taxes $ 101,800 $ 212,600

Income taxes 28,000 70,000

Net income $ 73,000 $ 142,600

Earnings per share $ 1.23 $ 2.38

Required: Calculate the percentage of increase and/or decrease for each category.

accounting 1 hour to complete 449970

Aug 29, 2021 | Uncategorized

1. Current liabilities are (Points : 2)

due but not receivable for more than one year.
due but not payable for more than one year.
due and receivable within one year.
due and payable within one year.

2. What options does a business have when financing operations? (Points : 2)

Debt financing
Equity financing
Asset financing
Both debt financing and equity financing

3. The liability for a dividend is recorded on which of the following dates? (Points : 2)

The date of record
The date of payment
The date of announcement
The date of declaration

4. Payroll taxes levied against employees become liabilities (Points : 2)

the first of the following month.
at the time the liability for the employee’s wages is paid.
when earned by the employee.
at the end of an accounting period.

5. Gross earnings for a payroll period less payroll deductions are referred to as (Points : 2)

overtime pay.
bonus pay.
gross pay.
net pay.

6. The primary purpose of a stock split is to (Points : 2)

increase paid in capital.
reduce the market price of the stock per share.
increase the market price of the stock per share.
increase retained earnings.

7. The par value per share of common stock represents (Points : 2)

the minimum selling price of the stock established by the articles of incorporation.
the minimum amount the stockholder will receive when the corporation is liquidated.
the monetary amount assigned to each share of stock in the articles of incorporation.
the amount of dividends per share to be received each year.

8. Which of the following would most likely be classified as a current liability? (Points : 2)

Two year notes payable
Bonds payable
Mortgage payable
Unearned rent

9. A corporation has 50,000 shares of $100 par value stock outstanding. If the corporation issues a 4 for 1 stock split, the number of shares outstanding after the split will be (Points : 2)

200,000 shares.
50,000 shares.
250,000 shares.
12,500 shares.

10. Where is interest expense listed on the income statement? (Points : 2)

Other expense section
Cost of merchandise sold
Operating expenses
Interest expense is on the balance sheet, not the income statement.

accounting 449976

Aug 29, 2021 | Uncategorized

1. Finished goods inventory is $185,000. If overhead applied to these goods is $74,000, and the overhead rate is 110% of direct labor, how much direct materials cost was incurred in producing the inventory? $29,600. $43,727. $67,273. $41,727. $81,400. 2. Austin Company uses a job order cost accounting system. The company’s executives estimated that direct labor would be $5,200,000 (200,000 hours at $26/hour) and that factory overhead would be $1,440,000 for the current period. At the end of the period, the records show that there had been 120,000 hours of direct labor and $1,140,000 of actual overhead costs. Using direct labor hours as a base, what was the predetermined overhead allocation rate? $6.78 per direct labor hour. $12.00 per direct labor hour. $7.20 per direct labor hour. $5.70 per direct labor hour. $6.37 per direct labor hour. 3.In cost volume profit analysis, the unit contribution margin is: Sales price per unit less cost of goods sold per unit. Sales price per unit less unit fixed cost per unit. Sales price per unit less total variable cost per unit. Sales price per unit less unit total cost per unit. The same as the contribution margin ratio. 4. The ending inventory of finished goods has a total cost of $11,600 and consists of 600 units. If the overhead applied to these goods is $3,850, and the overhead rate is 70% of direct labor, how much direct materials cost was incurred in producing these units? $5,005. $2,250. $7,750. $11,600. $5,500.

schedule of cash payments 449283

Aug 29, 2021 | Uncategorized

Select Physical Therapy Inc. is planning its cash payments for operations for the third quarter (July September), 2013. The Accrued Expenses Payable balance on July 1 is $28,300. The budgeted expenses for the next three months are as follows:

	July	August	September
Salaries	$65,100	$79,200	$87,700
Utilities	5,400	5,900	7,100
Other operating expenses	50,800	55,400	61,000
Total	$121,300	$140,500	$155,800

Other operating expenses include $3,600 of monthly depreciation expense and $800 of monthly insurance expense that was prepaid for the year on March 1 of the current year. Of the remaining expenses, 80% are paid in the month in which they are incurred, with the remainder paid in the following month. The Accrued Expenses Payable balance on July 1 relates to the expenses incurred in June.

Prepare a schedule of cash payments for operations for July, August, and September.

accounting managerial 449298

Aug 29, 2021 | Uncategorized

ShawnXu Enterprises recorded the following transactions for the just completed January 2010:

a.	$89,000 in raw materials were requisitioned for use in production. Of this amount, $78,000 was for direct materials and the remainder was for indirect materials.
b.	Total labor wages of $132,000 were incurred and paid in cash. Of this amount, $112,000 was for direct labor and the remainder was for indirect labor.
	c. Additional manufacturing overhead costs of $143,000 were incurred and paid.
d.	Manufacturing overhead costs of $152,000 were applied to jobs using the company’s predetermined overhead rate.

Required:

1. 1). Please record transaction %u201Ca%u201D in journal entries. show work

2. 2). Determine the total ACTUAL manufacturing overhead costs recorded for January?

3. 3). Determine the amount of underapplied or overapplied overhead for January. Please indicate under or over applied. Show your work.

4. 4). Determine the total manufacturing costs that were added into Work In Process account for January? Show your work.

5. Manufacturing overhead:

Answer

A. can be either a variable cost or a fixed cost.

B. includes the costs of shipping finished goods to customers.

C. includes all factory labor costs.

D. includes all fixed costs.

6. The controller of JoyCo has requested a quick estimate of the manufacturing supplies needed for the month of July when production is expected to be 470,000 units. Below are actual data from the prior three months of operations.

	Production in units	Manufacturing Supplies
March	450,000	$ 723,060
April	540,000	853,560
May	480,000	766,560

Using these data and the high low method, what is the best estimate of the cost of manufacturing supplies that would be needed for July?

Answer

		A. $805,284
		B. $1,188,756
		C. $755,196
		D. $752,060

accounting managerial multiple choice 449303

Aug 29, 2021 | Uncategorized

Short EXPLANATION or no points

Question 7 and 8 use the following information:

Nadell Corporation reported the following data for the month of April:

Inventories:	Beginning	Ending
Raw materials	$ 30,000	$ 32,000
Work in process	$ 20,000	$ 21,000
Finished goods	$ 39,000	$ 53,000

7. If the raw materials purchased during April totaled $63,000, what was the cost of the raw materials used in production for the month?

Answer

A. $63,000

B. $61,000

C. $62,000

D. $65,000

8. If the company transferred $234,000 of completed goods from work in process to finished goods inventory during April, what was the cost of goods sold for the month?

Answer

A. $234,000

B. $235,000

C. $220,000

D. $248,000

9. Under the job order costing system, when applying manufacturing overhead to jobs, the formula to calculate the applied overhead amount is as follows:

Answer

A. Predetermined overhead rate divided by the actual manufacturing overhead incurred on the particular job.

B. Predetermined overhead rate times the actual manufacturing overhead incurred on the particular job.

C. Predetermined overhead rate divided by the actual units of allocation base charged to the particular job.

D. Predetermined overhead rate times the actual units of allocation base charged to the particular job.

Question 10 and 11 use the following information:

Acer Corporation adopts the job order costing system, and applies manufacturing overhead on the basis of machine hours. It has provided the following data for its most recent year of operations.

Estimated manufacturing overhead for the year: $2,245,500

Estimated machine hours for the year: 45,000

Actual manufacturing overhead for January: 224,000

Actual machine hours for January: 4,440

The estimates of the manufacturing overhead and of machine hours were made at the beginning of the year for the purpose of computing the company’s predetermined overhead rate for the year.

10. The predetermined overhead rate is closest to:

Answer

A. $49.23

B. $49.90

C. $49.78

D. $50.45

11. By the end of January, the Company applied manufacturing overhead to all the jobs completed. The overhead for the month was:

Answer

A. $2,994 underapplied

B. $2,444 overapplied

C. $2,444 underapplied

D. $2,994 overapplied

12. In a job order costing system, the entry to record depreciation on manufacturing equipment would include:

Answer

		A. a debit to the Work in Process inventory account.
		B. a debit to the Depreciation Expense account.
		C. a debit to the Manufacturing Overhead account.
		D. a credit to the Work in Process inventory account.

accounting 449304

Aug 29, 2021 | Uncategorized

Sibrel Inc., a manufacturing company, has provided the following financial data for September:

Sales……………………………………………$590,000

Variable production expenses…………$106,000

Variable selling expense…………………$18,000

Variable administrative expense………$78,000

Fixed production expense……………….$145,000

Fixed selling expense…………………….$72,000

Fixed administrative expense………….132,000

The company had no beginning or ending inventories.

Required:

a) Prepare an income statement in good form for September using the traditional approach.

b) Prepare an income statement in good form for September using the contribution approach.

accounting 449313

Aug 29, 2021 | Uncategorized

Sonne Company produces a perfume called Whim. The direct materials and direct labor standards for one bottle of Whim are given below:

	Standard Quantity or Hours		Standard Price or Rate			Standard Cost
Direct materials	6.80	ounces	$	3.00	per ounce	$	20.40
Direct labor	0.50	hours	$	11.00	per hour	$	5.50

During the most recent month, the following activity was recorded:

a.	22,900 ounces of material were purchased at a cost of $2.70 per ounce.
b.	All of the material was used to produce 3,000 bottles of Whim.
c.	1,400 hours of direct labor time were recorded at a total labor cost of $18,200.

Required:

1.

Compute the direct materials price and quantity variances for the month. (Input all amounts as positive values. Do not round your per unit rates. Leave no cells blank be certain to enter “0” wherever required. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Round your intermediate calculations and final answers to the nearest dollar amount. Omit the “$” sign in your response.)


Direct materials price variance	$	(Click to select) F U None
Direct materials quantity variances	$	(Click to select) F U None

2.

Compute the direct labor rate and efficiency variances for the month. (Input all amounts as positive values. Do not round your per unit rates, round other intermediate calculations and your final answer to nearest whole dollar. Leave no cells blank be certain to enter “0” wherever required. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Round your intermediate calculations and final answers to the nearest dollar amount. Omit the “$” sign in your response.)


Direct labor rate variance	$	(Click to select) F U None
Direct labor efficiency variances	$	(Click to select) F U None

managerial accounting 449317

Aug 29, 2021 | Uncategorized

Specialized Consulting Service Company%u2019s after tax net cash flows associated with two mutually exclusive projects, Alpha and Beta, are as follows: Cash flow, EOY Project 0 1 2

Alpha 100 125 0 Beta 100 50 84

a. Calculate the net present value for each project using discount rates of 0, 0.04, 0.08, 0.12, 0.15, 0.20, and 0.25.

b. Prepare a graph as follows. Label the vertical axis %u2018%u2018Net Present Value in Dollars%u2019%u2019 and the horizontal axis %u2018%u2018Discount Rate in Percent per Year.%u2019%u2019 Plot the net present value amounts calculated in part a. for project Alpha and project Beta.

c. State the decision rule for choosing between projects Alpha and Beta as a function of the firm%u2019s cost of capital.

d. What generalizations can you draw from thisexercise?

taxation 449327

Aug 29, 2021 | Uncategorized

Stephanie is a twelve year old who often assists neighbors on weekends by babysitting their children. Calculate the 2012 standard deduction Stephanie will claim under the following independent circumstances (assume that Stephanie’s parents will claim her as a dependent). (Omit the “$” sign in your response.)

a.	Stephanie reported $850 of earnings from her babysitting.

Standard deduction

$

b.	Stephanie reported $1,500 of earnings from her babysitting.

Standard deduction

$

c.	Stephanie reported $6,200 of earnings from her babysitting.

Standard deduction

$

individual taxation 449329

Aug 29, 2021 | Uncategorized

Please show me steps on how to solve these problems!..

1. Isabel, a calendar year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December she received a $26,000 bill from her accountant for consulting services related to her small business. Isabel can pay the $26,000 bill anytime before January 30 of next year without penalty. Assume her marginal tax rate is 40 percent this year and next year, and that she can earn an after tax rate of return of 10 percent on her investments.

1 a. What is the after tax cost if Isabel pays the $26,000 bill in January?

(PV of single payment at various ARR: [0% 1year: 0.909], [10% 2 year: 0.826])

2. Daniel is considering selling two stocks that have not fared well over recent years. A friend recently informed Daniel that one of his stocks has a special designation, which allows him to treat a loss up to $30,000 on this stock as an ordinary loss rather than the typical capital loss. Daniel figures that he has a loss of $36,000 on each stock. If Daniel%u2019s marginal tax rate is 35 percent and he has $72,000 of other capital gains (taxed at 15 percent), what is the tax savings from the special tax treatment?

3. Matteo, who is single and has no dependents, was planning on spending the weekend repairing his car. On Friday, Matteo%u2019s employer called and offered him $200 in overtime pay if he would agree to work over the weekend. Matteo could get his car repaired over the weekend at Autofix for $148. If Matteo works over the weekend, he will have to pay the $148 to have his car repaired, but he will earn $200. Assume Matteo pays tax at a flat 15 percent rate. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

3 a. Considering monetary considerations only, should Matteo work or repair the car if the $148 he must pay to have his car fixed is not deductible? work or repair?

3 b. Given the answer in a 1 above, by how much is Matteo better or worse off?

3 c. Considering monetary considerations only, should Matteo work or repair the car if the $148 he must pay to have his car fixed is deductible for AGI? work or repair?

3 d. Given the answer in b 1 above, by how much is Matteo better or worse off?

4. Marc and Michelle are married and earned salaries this year of $64,000 and $12,000, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $500 from corporate bonds. Marc and Michelle also paid $2,500 of qualifying moving expenses, and Marc paid alimony to a prior spouse in the amount of $1,500. Marc and Michelle have a 10 year old son, Matthew, who lived with them throughout the entire year. Thus, Marc and Michelle are allowed to claim a $1,000 child tax credit for Matthew. Marc and Michelle paid $6,000 of expenditures that qualify as itemized deductions and they had a total of $5,500 in federal income taxes withheld from their paychecks during the course of the year.

4 a. What is Marc and Michelle%u2019s gross income?

4 b. What is Marc and Michelle%u2019s adjusted gross income?

4 c. What is the total amount of Marc and Michelle%u2019s deductions from AGI?

4 d. What is Marc and Michelle%u2019s taxable income?

4 e. What is Marc and Michelle%u2019s taxes payable or refund due for the year? (Round your answer to two decimal places.)

accounting 1 fifo lifo help 449337

Aug 29, 2021 | Uncategorized

Struggling in my accounting class & professor will not respond to my e mails or several of my classmates =/. Taking business courses for the first time & still having trouble with this question from an old exam professor did not provide a key or explanation as to how to do FIFO & LIFO.

I found this site, but wasn’t sure if gross margin was the same process in finding ending inventory. http://faculty.cbpp.uaa.alaska.edu/afrfb/acct201/P_5_1

THE QUESTION IS:

The following data is provided for XYZ Company:

Beginning Inventory 200 units @ 10 $ 2,000

Purchase 350 units @ 15 5,250

Purchase 450 units @ 20 9,000

Purchase 700 units @ 25 17,500

Ending units in inventory are 1,250. What is the cost of ending inventory under (1) FIFO and (2) LIFO?

(1) ____________ (2) _____________

acct help 449341

Aug 29, 2021 | Uncategorized

The Svelte Jeans Company produces two different types of jeans. One is called the %u201CSimple Life%u201D and the other is called the %u201CFancy Life%u201D. The company sales budget estimates that 350,000 of the Simple Life Jeans and 200,000 of the Fancy Life will be sold during 20xx. The Production Budget requires 353,500 units of Simple Life jeans and 196,000 Fancy Life jeans be manufactured. The Simple Life jeans require 3 yards of denim material, a zipper, and 25 yards of thread. The Fancy Life jeans require 4.5 yards of denim material, a zipper, and 40 yards of thread. Each yard of denim material costs $3.25, the zipper costs $.75 each, and the thread is $.01 per yard. There is enough material to make 2,000 jeans of each type at the beginning of the year. The desired amount of materials left in ending inventory is to have enough to manufacture 3,500 jeans of each type.

Prepare a Direct Materials Purchases Budget. If required, round your answers to two decimal please show work.

ANSWER SHOULD BE SET UP IN THIS FORM:

the sweetwater candy company would like to buy a new machine 449342

Aug 29, 2021 | Uncategorized

The Sweetwater Candy Company would like to buy a new machine that would automatically “dip” chocolates. The dipping operation is currently done largely by hand. The machine the company is considering costs $81,000. The manufacturer estimates that the machine would be usable for eight years but would require the replacement of several key parts at the end of the fifth year. These parts would cost $6,600, including installation. After eight years, the machine could be sold for $6,100.

The company estimates that the cost to operate the machine will be $11,500 per year. The present method of dipping chocolates costs $48,000 per year. In addition to reducing costs, the new machine will increase production by 4,000 boxes of chocolates per year. The company realizes a contribution margin of $0.7 per box. A 9% rate of return is required on all investments. (Ignore income taxes.)

Annual net cash inflows $39300

Requirement 2:

Compute the new machine’s net present value. Use the incremental cost approach.

Net present value $ ______________ round to nearest dollar

depreciation straight line double declining loss gain 449347

Aug 29, 2021 | Uncategorized

Teague Company purchased a new machine on January 1, Year XXX1, at a cost of $150,000. The machine is expected to have an eight year life and a $15,000 salvage value. The machine is expected to produce 675,000 finished products during its eight year life. Smith produced 70,000 units in Year XXX1 and 110,000 units during Year XXX2. Required: a) Determine the amount of depreciation expense to be recorded on the machine for the years XXX1 and XXX2 using straight line method, units of production method and double declining balance method of depreciation. b) If Teague Company sells the machine on January 1, Year XXX3 for $120,000, how much loss or gain would that result in using straight line method, units of production method and double declining balance method of depreciation.

ch 4 please use my question to answer 449353

Aug 29, 2021 | Uncategorized

Thad Morgan, a motorcycle enthusiast, has been exploring the possibility of relaunching the Western Hombre brand of cycle that was popular in the 1930s. The retro look cycle would be sold for $14,000 and at that price, Thad estimates 600 units would be sold each year. The variable cost to produce and sell the cycles would be $9,800 per unit. The annual fixed cost would be $1,890,000.

a.	What is the break even in unit sales?

Break even in unit sales

b.	What is the margin of safety in dollars (Omit the “$” sign in your response.)

Margin of safety in dollars

$

c.	What is the degree of operating leverage? (Round your answer to 2 decimal places.)

Degree of operating leverage

Thad is worried about the selling price. Rumors are circulating that other retro brands of cycles may be revived. If so, the selling price for the Western Hombre would have to be reduced to $11,000 to compete effectively. In that event, Thad would also reduce fixed expenses to $1,456,000 by reducing advertising expenses, but he still hopes to sell 600 units per year.

d.	What would the net operating income be in this situation? (Negative amount should be indicated by a minus sign. Omit the “$” sign in your response.)

Net operating income (loss)

$

managerial accounting hw help 449374

Aug 29, 2021 | Uncategorized

Use the following information from the current year financial statements of a company to calculate the ratios below:
(a) Current ratio.
(b) Accounts receivable turnover. (Assume the prior year’s accounts receivable balance was $100,000.)
(c) Days’ sales uncollected.
(d) Inventory turnover. (Assume the prior year’s inventory was $50,200.)
(e) Times interest earned ratio.
(f) Return on common stockholders’ equity. (Assume the prior year’s common stock balance was $480,000 and the retained earnings balance was $128,000.)
(g) Earnings per share (assuming the corporation has a simple capital structure, with only common stock outstanding).
(h) Price earnings ratio. (Assume the company’s stock is selling for $26 per share.)
(i) Divided yield ratio. (Assume that the company paid $1.25 per share in cash dividends.)

Income Statement data:

Sales (all on credit)……………………………… $1,075,000
Cost of goods sold…………………………… 575,000
Gross profits on sales…………………………..500,000
Operating expenses……………………………. 305,000
Operating income……………………………….. 195,000
Interest expense…………………………………. 20,400
Income before taxes……………………………. 174,600
Income taxes………………………………………. 74,000
Net income…………………………………………. 100,600

Balance sheet data:

Cash…………………………………………………….. $ 38,400
Accounts Receivable…………………………… 120,000
Inventory…………………………………………….. 56,700
Prepaid Expenses………………………………… 24,000
Total current assets…………………………….. 239,100
Total plant assets……………………………….. 708,900
Total assets…………………………………………. 948,000
Accounts payable……………………………….. 91,200
Interest payable………………………………… 4,800
Long term liabilities……………………………. 204,000
Total Liabilities……………………………………. 300,000
Common stock, $10 par……………………….. 480,000
Retained earnings…………………………………. 168,000

Total liabilities and equity…………………….. 948,000

accounting 449384

Aug 29, 2021 | Uncategorized

Vega Foods, Inc., has recently purchased a small mill that it intends to operate as one of its subsidiaries. The newly acquired mill has three products that it offers for sale%u2014wheat cereal, pancake mix, and flour. Each product sells for $10 per package. Materials, labor, and other variable production costs are $4.40 per bag of wheat cereal, $5.60 per bag of pancake mix, and $3.20 per bag of flour. Sales commissions are 10% of sales for any product. All other costs are fixed.

The mill%u2019s income statement for the most recent month is given below:

			Product Line
	Total Company		Wheat Cereal		Pancake Mix		Flour
Sales	$	1,020,000	$	340,000	$	440,000	$	240,000

Expenses:
Materials, labor, and other		472,800		149,600		246,400		76,800
Sales commissions		102,000		34,000		44,000		24,000
Advertising		128,000		56,800		48,200		23,000
Salaries		109,000		54,000		21,000		34,000
Equipment depreciation		51,000		17,000		22,000		12,000
Warehouse rent		20,400		6,800		8,800		4,800
General administration		96,000		32,000		32,000		32,000

Total expenses		979,200		350,200		422,400		206,600

Net operating income (loss)	$	40,800	$	(10,200)	$	17,600	$	33,400

The following additional information is available about the company:

a.	The same equipment is used to mill and package all three products. In the above income statement, equipment depreciation has been allocated on the basis of sales dollars. An analysis of equipment usage indicates that it is used 30% of the time to make wheat cereal, 60% of the time to make pancake mix, and 10% of the time to make flour.
b.	All three products are stored in the same warehouse. In the above income statement, the warehouse rent has been allocated on the basis of sales dollars. The warehouse contains 40,800 square feet of space, of which 8,000 square feet are used for wheat cereal, 14,000 square feet are used for pancake mix, and 18,800 square feet are used for flour. The warehouse space costs the company $0.50 per square foot per month to rent.
c.	The general administration costs relate to the administration of the company as a whole. In the above income statement, these costs have been divided equally among the three product lines.
d.	All other costs are traceable to the product lines.

Vega Foods%u2019 management is anxious to improve the mill%u2019s 4.00% margin on sales.

Required:

1.

Prepare a new contribution format segmented income statement for the month. Adjust the allocation of equipment depreciation and warehouse rent as indicated by the additional information provided. (Input all amounts as positive values except losses which should be indicated by a minus sign. Round your final answers to the nearest dollar amount.)

	Total Company	Wheat Cereal	Pancake Mix	Flour
(Click to select) Sales commissions General administration Contribution margin Net operating income (loss) Sales Materials, labor & other Advertising Salaries	$	$	$	$

Variable expenses:
(Click to select) Contribution margin Net operating income (loss) Materials, labor, and other Advertising Equipment depreciation Salaries Sales General administration
(Click to select) Sales Net operating income (loss) Advertising Sales commissions Salaries General administration Equipment depreciation Contribution margin

Total variable expenses

(Click to select) Contribution margin Gross margin

Traceable fixed expenses:
(Click to select) Materials, labor & other Product line segment margin Sales commissions Contribution margin Net operating income (loss) General administration Sales Advertising
(Click to select) General administration Salaries Net operating income (loss) Materials, labor & other Product line segment margin Contribution margin Sales commissions Sales
(Click to select) Equipment depreciation Materials, labor & other Sales commissions Sales Net operating income (loss) Contribution margin General administration Product line segment margin
(Click to select) Materials, labor & other Sales commissions General administration Net operating income (loss) Product line segment margin Sales Warehouse rent Contribution margin

Total traceable fixed expenses

(Click to select) Advertising Product line segment margin Contribution margin Materials, labor & other, Sales commissions Sales commissions Net operating income (loss) Sales Salaries	$	$	$	$

Common fixed expenses:
(Click to select) Salaries Sales General administration Materials, labor & other Advertising Sales commissions Contribution margin Equipment depreciation

(Click to select) Net operating loss Net operating income	$

2.	After seeing the income statement in the main body of the problem, management has decided to eliminate the wheat cereal because it is not returning a profit, and to focus all available resources on promoting the pancake mix.

Based on the statement you have prepared, do you agree with the decision to eliminate the wheat cereal?

	No
	Yes

accounting varience 449385

Aug 29, 2021 | Uncategorized

Verona Pizza is a small neighborhood pizzeria that has a small area for in store dining as well offering takeout and free home delivery services. The pizzeria%u2019s owner has determined that the shop has two major cost drivers%u2014the number of pizzas sold and the number of deliveries made. Data concerning the pizzeria%u2019s costs appear below:

	Fixed Cost per Month		Cost per Pizza	Cost per Delivery
Pizza ingredients			$ 4.10
Kitchen staff	$	6,000
Utilities	$	580	$ .10
Delivery person				$ 2.70
Delivery vehicle	$	690		$ 1.50
Equipment depreciation	$	382
Rent	$	1,770
Miscellaneous	$	710	$ .01

In October, the pizzeria budgeted for 1,400 pizzas at an average selling price of $12.00 per pizza and for 240 deliveries.

Data concerning the pizzeria%u2019s operations in October appear below:

	Actual Results
Pizzas		1,500
Deliveries		220
Revenue	$	18,640
Pizza ingredients	$	6,290
Kitchen staff	$	5,940
Utilities	$	855
Delivery person	$	594
Delivery vehicle	$	1,162
Equipment depreciation	$	382
Rent	$	1,770
Miscellaneous	$	717

Required:
1.	Compute the revenue and spending variances for the pizzeria for October. (Input all amounts as positive values. Leave no cells blank be certain to enter “0” wherever required. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance).)

Verona Pizza Revenue and Spending Variances For the Month Ended October 31
	Flexible Budget	Actual Results	Revenue and Spending Variances
Revenue	$	$	$	(Click to select) None F U

Expenses:
Pizza ingredients				(Click to select) F U None
Kitchen staff				(Click to select) F U None
Utilities				(Click to select) F U None
Delivery person				(Click to select) F U None
Delivery vehicle				(Click to select) F U None
Equipment depreciation				(Click to select) F U None
Rent				(Click to select) F U None
Miscellaneous				(Click to select) F U None

Total expense				(Click to select) F U None

Net operating income	$	$	$	(Click to select) F U None

fifo lifo and weighted average 449386

Aug 29, 2021 | Uncategorized

Victoria Company was formed on December 1, 2013. The following information is available from Jones’s inventory record for Product X

January 1, 2014 (beginning invnetory) 1600 units , unit cost $18.00

Purchases:

January 5, 2014: 2600 units, unit cost $20.00

February 16, 2014: 1,000 units, unit cost $22.00

March 15, 2014: 1,800 units, unit cost $23.00

A physcial inventory on March 31, 2014, shows 2,000 units on hand

Instructions:

Prepare schedules to compute the ENDING INVENTORY at March 31, 2014, under each of the following methods. Show computations in complete form.

(A) FIFO

(B) LIFO

(C) Weighted Average

wendell s donut shoppe is investigating the purchase 449395

Aug 29, 2021 | Uncategorized

Wendell’s Donut Shoppe is investigating the purchase of a new $15,752 donut making machine. The new machine would permit the company to reduce the amount of part time help needed, at a cost savings of $2,643 per year. In addition, the new machine would allow the company to produce one new style of donut, resulting in the sale of 1,600 dozen more donuts each year. The company realizes a contribution margin of $1.10 per dozen donuts sold. The new machine would have a six year useful life. (Ignore income taxes.)

1) What would be the total annual cash inflow s associated with the new machine for capital budgeting purposes?

Total annual cash inflows $4403

2)Find the internal rate of return promised by the new machine.________%

3)In addition to the data given previously, assume that the machine will have a $7,404 salvage value at the end of six years. Under these conditions, compute the internal rate of return.

managerial accounting 449396

Aug 29, 2021 | Uncategorized

Westin Watercraft%u2019s predetermined overhead rate for year 2011 is 200% of direct labor. Information on the company%u2019s production activities during May 2011 follows.

a.	Purchased raw materials on credit, $260,000.
b.	Paid $130,200 cash for factory wages.
c.	Paid $16,000 cash to a computer consultant to reprogram factory equipment.
d.	Materials requisitions record use of the following materials for the month.


Job 136	$	48,000
Job 137		32,500
Job 138		20,000
Job 139		22,400
Job 140		7,400

Total direct materials		130,300
Indirect materials		21,000

Total materials used	$	151,300

e.	Time tickets record use of the following labor for the month.


Job 136	$	12,100
Job 137		10,700
Job 138		37,900
Job 139		39,400
Job 140		3,600

Total direct labor		103,700
Indirect labor		26,500

Total	$	130,200

f.	Applied overhead to Jobs 136, 138, and 139.
g.	Transferred Jobs 136, 138, and 139 to Finished Goods.
h.	Sold Jobs 136 and 138 on credit at a total price of $545,000.
i.	The company incurred the following overhead costs during the month (credit Prepaid Insurance for expired factory insurance).


Depreciation of factory building	$	68,500
Depreciation of factory equipment		37,000
Expired factory insurance		12,000
Accrued property taxes payable		36,500

j.	Applied overhead at month end to the Goods in Process (Jobs 137 and 140) using the predetermined overhead rate of 200% of direct labor cost.

Required:
1.	Prepare a job cost sheet for each job worked on during the month. (Omit the “$” sign in your response.)

	Job No. 136	Job No. 137	Job No. 138	Job No. 139	Job No. 140
Materials	$	$	$	$	$
Labor
Overhead

Total cost	$	$	$	$	$

2.	Prepare journal entries to record the events and transactions a through j. (Omit the “$” sign in your response. )

	General Journal	Debit	Credit
a.


b.


c.


d.



e.



f.


g.


h.





i.





j.

4.	Prepare a report showing the total cost of each job in process and prove that the sum of their costs equals the Goods in Process Inventory account balance. Prepare similar reports for Finished Goods Inventory and Cost of Goods Sold. (Omit the “$” sign in your response.)

Reports of Job Costs
Goods in Process Inventory
	$


Balance	$

Finished Goods Inventory
	$

Balance	$

Cost of Goods Sold
	$


Balance	$

accounting help 449412

Aug 29, 2021 | Uncategorized

Over the next two years, William continued selling inventory to Roberts. Assume that any items in intercompany inventory at the end of a given year were sold to outside parties in the following year. Below are the details of the intercompany inventory sales:

Year	Intercompany sales	Intercompany ending inventory at transfer price	Gross profit rate on intercompany inventory transfers
2009	$125,000	$80,000	25%
2010	$220,000	$125,000	28%
2011	$300,000	$160,000	25%

What would be the journal entries and elimination entries?

accounting help please it s my last problem and i am lost 449195

Aug 29, 2021 | Uncategorized

Prepare the journal entries to record the cost of jobs completed.

Following is partial information for Delamunte Industries for the month of August:

	Work In Process
Balance, August 1	$	128,000
Direct materials		110,800
Direct labor		160,000
Applied overhead		134,000

Jobs finished during August are summarized here:

Job #	Cost of Jobs Completed
234	$	75,950
237		38,800
231		45,000
246		20,000

week three wileyplus e5 5 449202

Aug 29, 2021 | Uncategorized

Presented below is the trial balance of Vivaldi Corporation at December 31, 2012.

	Debit	Credit
Cash	$198,410
Sales		$7,902,630
Debt Investments (trading) (cost, $145,000)	155,630
Cost of Goods Sold	4,802,630
Debt Investments (long term)	300,410
Equity Investments (long term)	278,410
Notes Payable (short term)		92,630
Accounts Payable		457,630
Selling Expenses	2,002,630
Investment Revenue		64,570
Land	260,000
Buildings	1,041,410
Dividends Payable		137,410
Accrued Liabilities		98,630
Accounts Receivable	437,630
Accumulated Depreciation%u2014Buildings		352,000
Allowance for Doubtful Accounts		27,630
Administrative Expenses	901,570
Interest Expense	212,570
Inventory	598,410
Extraordinary Gain		81,570
Notes Payable (long term)		901,410
Equipment	602,630
Bonds Payable		1,001,410
Accumulated Depreciation%u2014Equipment		60,000
Franchises	160,000
Common Stock ($5 par)		1,002,630
Treasury Stock	193,630
Patents	195,000
Retained Earnings		79,410
Paid in Capital in Excess of Par		81,410
	$12,340,970	$12,340,970

Calculate ending retained earnings and prepare a balance sheet at December 31, 2012, for Vivaldi Corporation. Ignore income taxes. (List current assets in order of liquidity. List property plant and equipment in order of land, building and equipment.)

managerial accounting hw help please 449206

Aug 29, 2021 | Uncategorized

Problem 1: Beginning raw materials $5600 Ending raw materials $4200 Direct Labor $17,250 Raw materials purchases $7400 Depreciation of factory equipment $6750 Factory repairs and maintenance $3300 Beginning finished goods inventory $10800 Ending finished goods inventory $8900 Beginning goods in process inventory $5350 Ending goods in process inventory $6300 OH application rate 60% of DL a) Calculate the cost of materials used. (b) Calculate the manufacturing costs incurred during the period. (c) Calculate the Cost of Goods Manufactured during the period. (d) Calculate the Cost of Goods Sold during the period. (e) Calculate the amount by which overhead is under or over applied. PROBLEM 3 David, Inc. is preparing its master budget for the second quarter. The following sales and production data have been forecasted: April May June July August Unit Sales 400 500 520 480 540 Finished goods inventory on March 31: 120 units Raw materials inventory on March 31: 450 pounds Desired ending inventory each month: Finished goods:30% of next month’s sales Raw materials:25% of next month’s production needs Number of pounds of raw material required per finished unit: 4 lb. Number of direct labor hours to produce each unit: 3 hours Labor rate per hour: $10 (a) How many units should be produced during April and May? (b) How many pounds of raw materials should be purchased in April? (c) What is the budgeted labor cost for April? PROBLEM 5 A company is considering a proposal to invest $30,000 in a project that would provide the following net cash flows: Year 1 $6500 Year 2 $10,700 Year 3 $15,000 Year 4 $12,800 (a) Compute the project’s payback period. (b) Compute the net present value of the project assuming a 10% discount rate with the following factors: PV factors for $1(yr 1: 0.9091; yr 2: 0.8264; yr 3:0 .7513; yr 4: 0.6830) (c) Should the company invest in the machine? Why or why not?

managerial accounting vulcan company s contribution format income statement for june 449211

Aug 29, 2021 | Uncategorized

Problem 11 24 Segment Reporting and Decision Making [LO1]

[The following information applies to the questions displayed below.]

Vulcan Company’s contribution format income statement for June is given below:

Vulcan Company Income Statement For the Month Ended June 30
Sales	$859,000
Variable expenses	396,858
Contribution margin	462,142
Fixed expenses	436,372
Net operating income	$25,770

Management is disappointed with the company’s performance and is wondering what can be done to improve profits. By examining sales and cost records, you have determined the following:

a.

The company is divided into two sales territories%u2014Northern and Southern. The Northern territory recorded $411,000 in sales and $209,850 in variable expenses during June; the remaining sales and variable expenses were recorded in the Southern territory. Fixed expenses of $150,000 and $120,000 are traceable to the Northern and Southern territories, respectively. The rest of the fixed expenses are common to the two territories.

b.

The company is the exclusive distributor for two products%u2014Paks and Tibs. Sales of Paks and Tibs totaled $105,000 and $306,000, respectively, in the Northern territory during June. Variable expenses are 25% of the selling price for Paks and 60% for Tibs. Cost records show that $57,000 of the Northern territory’s fixed expenses are traceable to Paks and $50,000 to Tibs, with the remainder common to the two products.

references

18. value:

19.00 points

Problem 11 24 Requirement 1

Requirement 1:

Prepare contribution format segmented income statements. (Round percentage computations to 1 decimal place. Negative amounts other than expenses should be indicated by a minus sign. Omit the “$” and “%” signs in your response.)

			Sales Territory
	Total Company		Northern		Southern
	Amount	%	Amount	%	Amount	%
Sales	$		$		$
Variable expenses
Contribution margin
Traceable fixed expenses
Sales territory segment margin			$		$
Common fixed expenses
Net operating income	$

			Product Line
	Northern Territory		Paks		Tibs
	Amount	%	Amount	%	Amount	%
Sales	$		$		$
Variable expenses
Contribution margin
Traceable fixed expenses
Product line segment margin			$		$
Common fixed expenses
Sales territory segment margin	$

check my workreferences

19. value:

1.00 points

Problem 11 24 Requirement 2

Requirement 2:

Based on the above income statements, which of the following the statement(s) is true? (Select all that apply.)

	The high traceable fixed expenses of the Paks product may simply mean that the Paks product is not highly leveraged.
	The Northern territory has high traceable fixed expenses.
	An increase in sales of Paks product line would not greatly enhance profits in the Northern territory.
	Compared to the Southern territory, the Northern territory has a low contribution margin ratio.
	The Northern territory has a poor sales mix.
	Overall, compared to the Southern territory, the Northern territory is very weak.

accounting depreciation 449213

Aug 29, 2021 | Uncategorized

Problem 9 4A

Depreciation by Two Methods; Sale of Fixed Asset

New lithographic equipment, acquired at a cost of $787,500 at the beginning of a fiscal year, has an estimated useful life of five years and an estimated residual value of $67,500. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On the basis of the data presented to the manager, the double declining balance method was selected.

In the first week of the fifth year, the equipment was sold for $115,000.

Instructions:

Hint(s)

1. Determine the annual depreciation expense for each of the estimated five years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by the following methods:

a. Straight line method

Year Depreciation Expense Accumulated Depreciation, End of Year Book Value, End of Year

1 Fill in blanks Fill in Fill in $

2 $ $ $

3 $ $ $

4 $ $ $

5 $ $ $

b. Double declining balance method

Year Depreciation Expense Accumulated Depreciation, End of Year Book Value, End of Year

1 $ $ $

2 $ $ $

3 $ $ $

4 $ $ $

5 $ $ $

the production manager of rordan corporation has submitted the following forecast of 449215

Aug 29, 2021 | Uncategorized

The production manager of Rordan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:

	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter
Units to be produced	5,450	4,100	4,300	5,050

Each unit requires 0.3 direct labor hours, and direct laborers are paid $13 per hour.

rev: 02 10 2011

5. value:

1.50 points

Requirement 1:

Compute the company’s direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced. (Omit the “$” sign in your response.)

	Total direct labor cost
1st Quarter	$
2nd Quarter	$
3rd Quarter	$
4th Quarter	$
Year	$

rev: 02 10 2011 check my workeBook Linkreferences

6. value:

1.50 points

Requirement 2:

Compute the company’s direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is not adjusted each quarter. Instead, assume that the company’s direct labor workforce consists of permanent employees who are guaranteed to be paid for at least 1,340 hours of work each quarter. If the number of required direct labor hours is less than this number, the workers are paid for 1,340 hours anyway. Any hours worked in excess of 1,340 hours in a quarter are paid at the rate of 1.1 times the normal hourly rate for direct labor.(Round your answers to the nearest dollar amount. Omit the “$” sign in your response.)

	Total direct labor cost
1st Quarter	$
2nd Quarter	$
3rd Quarter	$
4th Quarter	$
Year	$

answer the following questions 449216

Aug 29, 2021 | Uncategorized

A proprietor, Mr. A has reported a profit of Rs. 1,25,000 at the end of the financial year after taking into consideration the following amount:
(i) The cost of an asset of Rs. 25,000 has been taken as en expense.
(ii) Mr. A is anticipating a profit of Rs. 10,000 on the future sale of a car shown as an asset in his books.
(iii) Salary of Rs. 7,000 payable in the financial year has not been taken into account.
(iv) Mr. A purchased an asset for Rs.75,000 but its fair value on the date of purchase was Rs. 85,000. Mr. A recorded the value of asset in his books by Rs. 85,000.
On the basis of the above facts answer the following questions from the given choices:
(i) What is the correct amount of profit to be reported in the books?
(a) Rs. 1,25,000, (b) Rs.1,35,000, (c) Rs. 1,50,000,(d) Rs. 1,33,000,
(ii) Which measurement base should be followed in the statement (iv)?
(a) Historical cost,(b) Current cost (c) Replacement cost (d)Present value
(iii) Which concept should be followed in the statement (ii)?
(a) Conservatism, (b) Materiality, (c) Historical cost, (d)Accrual,
(iv) Which concept should be followed in the statement (iii)?
(a) Materiality, (b) Historical cost, (c) Current cost, (d)Accrual,

weighted average expenditures 449222

Aug 29, 2021 | Uncategorized

Question 1

On April 1, Paine Co. began construction of a small building. Payments of $180,000 were made monthly for four months beginning on April 1. The building was completed and ready for occupancy on August 1. For the purpose of determining the amount of interest cost to be capitalized, calculate the weighted average accumulated expenditures on the building by completing the schedule below:

Date Expenditures Capitalization Period Weighted Average Expenditures

Question 2

On March 1, Mocl Co. began construction of a small building. The following expenditures were incurred for construction:

March 1 $ 150,000 April 1 $ 148,000

May 1 360,000 June 1 540,000

July 1 200,000

The building was completed and occupied on July 1. To help pay for construction $100,000 was borrowed on March 1 on a 12%, three year note payable. The only other debt outstanding during the year was a $1,000,000, 10% note issued two years ago.

Instructions

(a) Calculate the weighted average accumulated expenditures.

(b) Calculate avoidable interest.

e14 8 developing raw material cost standards lo 9 10 and e14 4 production and purcha 449226

Aug 29, 2021 | Uncategorized

TWO PART QUESTION

Ozark Manufacturing Co. manufactures and sells household cleaning products. The company’s research department has developed a new cleaner for which a standard cost must be determined. The new cleaner is made by mixing 13 quarts of triphate solution and 3 pounds of sobase granules and boiling the mixture for several minutes. After the solution has cooled, 1 ounces of methage are added. This “recipe” produces 11 quarts of the cleaner, which is then packaged in one quart plastic dispenser bottles. Raw material costs are:

Triphate solution	$	0.28	per quart
Sobase granules		0.79	per pound
Methage		1.22	per ounce
Bottle		0.24	each

Using the preceding data, calculate the raw material cost for one bottle of the new cleaner. (Do not round your intermediate calculations. Round final answer to 3 decimal places. Omit the “$” sign in your response.)

Cost per bottle

$

Osage Inc., has actual sales for June and July and forecast sales for August, September, October, and November as follows:


Actual:
June	5,910	units
July	6,260	units
Forecasted:
August	5,970	units
September	6,860	units
October	5,690	units
November	5,390	units

Required:
(a)	The firm%u2019s policy is to have finished goods inventory on hand at the end of the month that is equal to 55% of the next month%u2019s sales. It is currently estimated that there will be 4,080 units on hand at the end of July. Calculate the number of units to be produced in each of the months of August, September, and October. (Round your answers to nearest whole number.)

	August	September	October
Production

(b)

Each unit of finished product requires 6 pounds of raw materials. The firm%u2019s policy is to have raw material inventory on hand at the end of each month that is equal to 65% of the next month%u2019s estimated usage. It is currently estimated that 25,800 pounds of raw materials will be on hand at the end of July. Calculate the number of pounds of raw materials to be purchased in each of the months of August and September. (Round your answers to nearest whole number.)

	August	September
Purchases

can someone show me how to do this exercise 449230

Aug 29, 2021 | Uncategorized

Qwik Repairs has over 200 auto maintenance service outlets nationwide. It provides primarily two lines of service: oil changes and brake repair. Oil change%u2013related services represent 63% of its sales and provide a contribution margin ratio of 19%. Brake repair represents 37% of its sales and provides a 61% contribution margin ratio. The company%u2019s fixed costs are $16,150,000 (that is, $80,750 per service outlet).

(a) Calculate the dollar amount of each type of service that the company must provide in order to break even. (Use Weighted Average Contribution Margin Ratio rounded to 3 decimal places e.g. 0.255 and round final answers to 0 decimal places, e.g. 2,510.)

(b) The company has a desired net income of $60,043 per service outlet. What is the dollar amount of each type of service that must be provided by each service outlet to meet its target net income per outlet? (Use Weighted Average Contribution Margin Ratio rounded to 3 decimal places e.g. 0.255 and round final answers to 0 decimal places, e.g. 2,510.)

intermediate accounting 449231

Aug 29, 2021 | Uncategorized

Raintree Cosmetic Company sells its products to customers on a credit basis. An adjusting entry for bad debt expense is recorded only at December 31, the company’s fiscal year end. The 2012 balance sheet disclosed the following: Current assets: Receivables, net of allowance for uncollectible accounts of $34,000 $ 452,000 During 2013, credit sales were $1,770,000, cash collections from customers $1,850,000, and $39,000 in accounts receivable were written off. In addition, $3,400 was collected from a customer whose account was written off in 2012. An aging of accounts receivable at December 31, 2013, reveals the following: Percentage of Year End Percent Age Group Receivables in Group Uncollectible 0’60 days 60 % 3 % 61’90 days 10 5 91’120 days 20 25 Over 120 days 10 45 Required: 1. Prepare summary journal entries to account for the 2013 write offs and the collection of the receivable previously written off. (If no entry is required for a particular event, select “No journal entry required” in the first account field.) Record accounts receivable written off during the year 2013. Record entry to reinstate an account receivable previously written off. Record collection of an account receivable previously written off. 2. Prepare the year end adjusting entry for bad debts according to each of the following situations: a. Bad debt expense is estimated to be 2% of credit sales for the year. b. Bad debt expense is estimated by computing net realizable value of the receivables. The allowance for uncollectible accounts is estimated to be 10% of the year end balance in accounts receivable. c. Bad debt expense is estimated by computing net realizable value of the receivables. The allowance for uncollectible accounts is determined by an aging of accounts receivable. (If no entry is required for a particular transaction, select “No journal entry required” in the first account field.) 3. For the above transactions, what would be the net amount of accounts receivable reported in the 2013 balance sheet? a. Bad debt expense is estimated to be 2% of credit sales for the year. b. Bad debt expense is estimated by computing net realizable value of the receivables. The allowance for uncollectible accounts is estimated to be 10% of the year end balance in accounts receivable. c. Bad debt expense is estimated by computing net realizable value of the receivables. The allowance for uncollectible accounts is determined by an aging of accounts receivable.

contribution margin and contribution margin ratio 449235

Aug 29, 2021 | Uncategorized

For a recent year, McDonald%u2019s company owned restaurants had the following sales and expenses (in millions):
Sales $16,561
Food and packaging $ 5,586
Payroll 4,300
Occupancy (rent, depreciation, etc.) 3,767
General, selling, and administrative expenses 2,355
$16,008
Income from operations $ 553

Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses.

a. What is McDonald’s contribution margin? Round to the nearest million. (Give answer in millions of dollars.)
$

b. What is McDonald’s contribution margin ratio? Round to one decimal place.
%

c. How much would income from operations increase if same store sales increased by $400 million for the coming year, with no change in the contribution margin ratio orfixed costs? (Give answer in millions of dollars, rounded to one decimal place.)
$

managerial accounting question 449236

Aug 29, 2021 | Uncategorized

You have recently been employed by a large retail chain that sells sporting goods. One of your tasks is to help prepare periodic financial statements for external distribution. The chain%u2019s largest creditor, National Savings & Loan, requires quarterly financial statements, and you are currently working on the statements for the three month period ending June 30, 2006.During the months of May and June, the company spent $1,200,000 on a large radio and TV advertising campaign. The $1,200,000 included the costs of producing the commercials as well as the radio and TV time purchased to run the commercials. All of the costs were charged to advertising expense. The company%u2019s chief financial officer (CFO) has asked you to prepare a June 30 adjusting entry to remove the costs from advertising expense and to set up an asset called
prepaid advertising that will be expensed in July. The CFO explained that %u201CThis advertising campaign has produced significant sales in May and June and I think it will continue to bring in customers through the month of July. By recording the ad costs as an asset, we can match the cost of the advertising with the additional July sales. Besides, if we expense the advertising in May and June, we will show an operating loss on our income statement for the quarter. The bank requires that we continue to show quarterly profits in order to maintain our loan in good standing.%u201D What is your course of action and recommendation??

chapter 7 cont from other question 449243

Aug 29, 2021 | Uncategorized

Requirement 3:

Prepare a quantitative comparison of the traditional and activity based cost assignments. (Do not round your intermediate calculations. Round your predetermined overhead rate to 2 decimal places. Round your percentage values to 1 decimal places and round all other values to the nearest whole number. Omit the “$” & “%” signs in your response.)

	Xtreme		Pathfinder		Total
Traditional Cost System	Amount	%		%	Amount
Direct materials	$	%	$	%	$
Direct labor		%		%
Manufacturing overhead		%		%
Total cost assigned to products	$		$		$
Activity Based Costing System
Direct costs:
Direct materials	$	%	$	%	$
Direct labor		%		%
Indirect costs:
Supporting direct labor		%		%
Batch setups		%		%
Product sustaining		%		%
Total cost assigned to products	$		$		$
Costs not assigned to products:
Other
Total cost					$

process costing using the fifo method 449252

Aug 29, 2021 | Uncategorized

Riley’s Paper Company manufactures computer paper for laser printers. The following information is related to production costs incurred in the manufacturing process during the month of March:

(see attached graph)

The company uses the FIFO method of computing equivalent units and assigning product costs. Production costs include both the cost of raw materials and conversion costs that are incurred uniformly in the production process.

A. How many reams of paper were completed in March?

B. Of the reams of paper completed in March, how many were started and completed during the month?

C. How many equivalent finished units did the company complete in March?

D. What is the cost per equivalent unit?

E. Calculate the cost of the ending work in process inventory and the cost of goods manufactured in March.

accounting 449257

Aug 29, 2021 | Uncategorized

Roberts Corporation and William Company (Continuing Project)

Assume instead that on January 1, 2009, Roberts Corporation acquired 80 percent of the outstanding voting stock of William Company in exchange for $1,200,000 cash. At that time, although William’s book value was $925,000, Roberts assessed William’s total business fair value at $1,500,000.

The book values of William’s individual assets and liabilities approximated their fair values at the acquisition date, except for the equipment account, which was undervalued by $350,000. The undervalued equipment had a five year remaining life at the acquisition date. Any remaining excess fair value was attributed to goodwill. No goodwill impairments have occurred.

During its first year of combined operations, William earned net income of $180,000 and paid dividends totaling $30,000. William immediately began supplying inventory to Roberts. Below are the details of the intercompany inventory sales for the current year:

Year	Intercompany sales	Intercompany ending inventory at transfer price	Gross profit rate on intercompany inventory transfers
2009	$125,000	$80,000	25%

Separate financial statements for both companies as of December 31, 2009, are shown below:

	Roberts	William
Revenues	$(1,740,000)	$(900,000)
Cost of goods sold	$820,000	$500,000
Depreciation expense	$104,000	$85,000
Amortization expense	$220,000	$120,000
Interest expense	$20,000	$15,000
Income from Subsidiary	$(72,000)	0
Net Income	$(648,000)	$(180,000)

Retained earnings, 1/1/09	$(2,800,000)	$(125,000)
Net Income (above)	$(648,000)	$(180,000)
Dividends paid	$200,000	$30,000
Retained earnings, 12/31/09	$(3,248,000)	$(275,000)

Cash	$691,000	$115,000
Accounts receivable	$500,000	$215,000
Inventory	$990,000	$800,000
Investment in William Stock	$1,248,000	0
Buildings and equipment (net)	$1,025,000	$863,000
Patents	$950,000	$107,000
Total assets	$5,404,000	$2,100,000

Accounts payable	$(411,000)	$(200,000)
Notes payable	$(545,000)	$(825,000)
Common stock	$(900,000)	$(700,000)
Additional paid in capital	$(300,000)	$(100,000)
Retained earnings, 12/31/09 (above)	$(3,248,000)	$(275,000)
Total liabilities and stockholders’ equity	$(5,404,000)	$(2,100,000)

Based on the information given above, complete the following tasks:

Assuming that Roberts accounts for its investment in William using the equity method, prepare all necessary general journal entries for the year ending December 31, 2009. Include supporting calculations of all amounts in a separate schedule.
Next, prepare the eliminating entries needed at January 1, 2009, to prepare the consolidated balance sheet as of the date of acquisition. You are not required to prepare the actual consolidated balance sheet.
Finally, prepare the eliminating entries needed at December 31, 2009, and prepare the consolidated income statement, retained earnings statement, and balance sheet as of December 31, 2009, using spreadsheet software (Microsoft Excel). Be sure to show clearly the noncontrolling interest in both net income and stockholders’ equity on your worksheet.

Submit your answers in a Microsoft Excel sheet.

individual taxation 449272

Aug 29, 2021 | Uncategorized

Samantha, an executive, has AGI of $100,000 before considering income or loss from her miniature horse business. Her outside income comes from prizes for winning horse shows, stud fees, and sales of yearlings. Samantha%u2019s home is on 20 acres, half of which she uses for the horse activity (i.e., stables, paddocks, fences, tack houses, and other related improvements). Samantha%u2019s office in her home is 10% of the square footage of the house. She uses the office exclusively for maintaining files and records on the horse activities. Her books show the following income and expenses for the current year:

Income from fees, prizes, and sales $22,000 Expenses Entry fees 1,000 Feed and veterinary bills 4,000 Supplies 900 Publications and dues 500 Travel to horse shows (no meals) 2,300 Salaries and wages of employees 8,000 Depreciation %u2014 Horse equipment $3,000 Horse farm improvements 7,000 On 10% of personal residence 1,000 11,000 Total home mortgage interest 24,000 Total property taxes on home 2,200 Total property taxes on horse farm improvements 800

The mortgage interest is only on her home because the horse farm improvements are not mortgaged. a. What are Samantha%u2019s tax consequences if the miniature horse activity is a hobby? b. If it is a business?

accounting 449275

Aug 29, 2021 | Uncategorized

Sandi Scott obtained a patent on a small electronic device and organized Scott Products, Inc., to produce and sell the device. During the first month of operations, the device was very well received on the market, so Ms. Scott looked forward to a healthy profit. For this reason, she was surprised to see a loss for the month on her income statement. This statement was prepared by her accounting service, which takes great pride in providing its clients with timely financial data. The statement follows:

Scott Products, Inc. Income Statement
Sales (21,000 units)			$	762,300
Variable expenses:
Variable cost of goods sold	$	245,700
Variable selling and administrative expenses		164,850		410,550

Contribution margin				351,750
Fixed expenses:
Fixed manufacturing overhead		201,600
Fixed selling and administrative expenses		216,000		417,600

Net operating loss			$	( 65,850)

Ms. Scott is discouraged over the loss shown for the month, particularly because she had planned to use the statement to encourage investors to purchase stock in the new company. A friend, who is a CPA, insists that the company should be using absorption costing rather than variable costing. He argues that if absorption costing had been used, the company would probably have reported a profit for the month.

Selected cost data relating to the product and to the first month of operations follow:


Units produced		24,000
Units sold		21,000
Variable costs per unit:
Direct materials	$	7.30
Direct labor	$	2.90
Variable manufacturing overhead	$	1.50
Variable selling and administrative expenses	$	7.85

Required:

1.	Complete the following:

a.	Compute the unit product cost under absorption costing. (Round your intermediate and final answers to 2 decimal places.)

Unit product cost

$

b.	Redo the company%u2019s income statement for the month using absorption costing. (Input all amounts as positive values except losses which should be indicated by a minus sign. Round your intermediate calculations to 2 decimal places. Round your final answers to the nearest whole number.)

Absorption Costing Income Statement
(Click to select) Cost of goods sold Selling and administrative expenses Net operating income (loss) Gross margin Sales	$
(Click to select) Sales Selling and administrative expenses Net operating income (loss) Cost of goods sold Gross margin

(Click to select) Gross margin Contribution margin
(Click to select) Selling and administrative expenses Sales Gross margin Net operating income (loss) Cost of goods sold

(Click to select) Net operating income Net operating loss	$

c.	Reconcile the variable and absorption costing net operating income (loss) figures. (Loss amounts and amounts to be deducted should be indicated with a minus sign. Round your intermediate calculations to 2 decimal places. Round your final answers to the nearest whole number.)

Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes
Variable costing net operating income (loss)	$
(Click to select) Add Deduct : (Click to select) Fixed manufacturing overhead cost deferred in inventory Fixed manufacturing overhead cost released from inventory

Absorption costing net operating income (loss)	$

3.	During the second month of operations, the company again produced 24,000 units but sold 27,000 units. (Assume no change in total fixed costs.)

a.	Prepare a contribution format income statement for the month using variable costing. (Input all amounts as positive values except losses which should be indicated by a minus sign. Round your intermediate calculations to 2 decimal places. Round your final answers to the nearest whole number.)

Variable Costing Income Statement
(Click to select) Fixed manufacturing overhead Fixed selling and administrative expense Variable selling and administrative expense Contribution margin Variable cost of goods sold Sales Net operating income (loss)		$
Variable expenses:
(Click to select) Sales Fixed selling and administrative expense Net operating income (loss) Contribution margin Variable cost of goods sold Fixed manufacturing overhead Variable selling and administrative expense	$
(Click to select) Variable cost of goods sold Sales Net operating income (loss) Fixed manufacturing overhead Contribution margin Variable selling and administrative expense Fixed selling and administrative expense

(Click to select) Gross margin Contribution margin
Fixed expenses:
(Click to select) Net operating income (loss) Contribution margin Sales Fixed manufacturing overhead Fixed selling and administrative expense Variable cost of goods sold Variable selling and administrative expense
(Click to select) Net operating income (loss) Sales Variable cost of goods sold Variable selling and administrative expense Contribution margin Fixed selling and administrative expense Fixed manufacturing overhead

(Click to select) Net operating loss Net operating income		$

b.	Prepare an income statement for the month using absorption costing. (Input all amounts as positive values except losses which should be indicated by a minus sign. Round your intermediate calculations to 2 decimal places. Round your final answers to the nearest whole number.)

Absorption Costing Income Statement
(Click to select) Gross margin Sales Net operating income (loss) Cost of goods sold Selling and administrative expenses	$
(Click to select) Cost of goods sold Sales Gross margin Net operating income (loss) Selling and administrative expenses

(Click to select) Contribution margin Gross margin
(Click to select) Net operating income (loss) Cost of goods sold Sales Gross margin Selling and administrative expenses

(Click to select) Net operating income Net operating loss	$

c.	Reconcile the variable costing and absorption costing net operating incomes. (Loss amounts and amounts to be deducted should be indicated with a minus sign. Round your intermediate calculations to 2 decimal places. Round your final answers to the nearest whole number.)

Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes
Variable costing net operating income (loss)	$
(Click to select) Deduct Add : (Click to select) Fixed manufacturing overhead cost released from inventory Fixed manufacturing overhead cost deferred in inventory

Absorption costing net operating income (loss)	$

costing problem 449276

Aug 29, 2021 | Uncategorized

Santana Rey expected sales of her line of computer workstation furniture to equal 300 workstations (at a sales price of $3,600) for 2012. The workstations’ manufacturing costs include the following.


Direct materials	$	740	per unit
Direct labor	$	340	per unit
Variable overhead	$	80	per unit
Fixed overhead	$	19,200	per year

The selling expenses related to these workstations follow.


Variable selling expenses	$	45	per unit
Fixed selling expenses	$	3,700	per year

Santana is considering how many workstations to produce in 2012. She is confident that she will be able to sell any workstations in her 2012 ending inventory during 2013. However, Santana does not want to overproduce as she does not have sufficient storage space for many more workstations.

Required:
1.	Compute Business Solutions’ absorption costing income assuming. (Omit the “$” sign in your response.)


a.	300 Workstations	$
b.	320 Workstations	$

2.	Compute Business Solutions%u2019 variable costing income assuming. (Omit the “$” sign in your response.)


a.	300 Workstations	$
b.	320 Workstations	$

optimal sales mix 449277

Aug 29, 2021 | Uncategorized

Santana Rey has found that her line of computer desks and chairs has become very popular and she is finding it hard to keep up with demand. She knows that she cannot fill all of her orders for both items, so she decides she must determine the optimal sales mix given the resources she has available. Information about the desks and chairs follows.

	Desks			Chairs
Selling price per unit	$	1,454.25		$	498.00
Variable costs per unit		560.00			150.00

Contribution margin per unit	$	894.25		$	348.00

Direct labor hours per unit		7	hours		6	hours
Expected demand for next quarter		171	desks		47	chairs

Santana has determined that she only has 1,413 direct labor hours available for the next quarter and wants to optimize her contribution margin given the limited number of direct labor hours available.

Required:

Determine the optimal sales mix and the contribution margin the business will earn at that sales mix. (Input all amounts as positive values. Do not round intermediate calculations and round your final answers to 2 decimal places. Omit the “$” sign in your response).

	Desks	Chairs	Total
Sales	$	$	$
Variable costs

Contribution margin	$	$	$
PLEASE HAVE ANSWERS DISPLAYED AS IF THEY ARE BEING PLACED IN THE BOX

e12 10 special promotion effects of a 1 cent sale lo 8 9 please show calculations 449097

Aug 29, 2021 | Uncategorized

The management of Rocko’s Pizzeria is considering a special promotion for the last two weeks of October, which is normally a relatively low demand period. The special promotion would involve selling two medium pizzas for the price of one, plus 1 cent. The medium pizza normally sells for $11.99 and has variable expenses of $3.2. Expected sales volume without the special promotion is 395 medium pizzas per week.

Required:
(a)	Calculate the total contribution margin generated by the normal volume of medium pizzas in a week.(Do not round your intermediate calculations. Round your answer to the nearest dollar amount. Omit the “$” sign in your response.)

Contribution margin

$

(b)

Calculate the total number of medium pizzas that would have to be sold during the 1 cent sale to generate the same amount of contribution margin that results from the normal volume. (Do not round your intermediate calculations. Round your answer to the nearest whole number.)

Number of pizzas

revenues variable expense=contribution margin

mangerical accounting 449103

Aug 29, 2021 | Uncategorized

The marketing department of Graber Corporation has submitted the following sales forecast for the upcoming fiscal year.

	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter
Budgeted unit sales	19,000	18,000	17,000	18,000

The selling price of the company%u2019s product is $23.00 per unit. Management expects to collect 75% of sales in the quarter in which the sales are made, 20% in the following quarter, and 5% of sales are expected to be uncollectible. The beginning balance of accounts receivable, all of which is expected to be collected in the first quarter, is $63,000.

The company expects to start the first quarter with 2,850 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 15% of the next quarter%u2019s budgeted sales. The desired ending finished goods inventory for the fourth quarter is 3,050 units.

Required:

1a.

Compute the company%u2019s total sales.

	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Year
Total sales	$	$	$	$	$

1b.

Complete the schedule of expected cash collections. (Do not round intermediate calculations. Leave no cells blank be certain to enter “0” wherever required.)

Graber Corporation Schedule of Expected Cash Collections
	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Year
Accounts receivable, beginning balance	$	$	$	$	$
1st Quarter sales
2nd Quarter sales
3rd Quarter sales
4th Quarter sales

Total cash collections	$	$	$	$	$

2.	Prepare the company%u2019s production budget for the upcoming fiscal year. (Input all amounts as positive values. Do not round intermediate calculations.)

Graber Corporation Production Budget
	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Year
Budgeted unit sales
:

Total units needed
:

Required production

question 2

The production department of Priston Company has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year.

	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter
Units to be produced	9,000	10,000	11,000	8,000

In addition, the beginning raw materials inventory for the 1st Quarter is budgeted to be 7,200 pounds and the beginning accounts payable for the 1st Quarter is budgeted to be $17,100.

Each unit requires four pounds of raw material that costs $3.00 per pound. Management desires to end each quarter with a raw materials inventory equal to 20% of the following quarter%u2019s production needs. The desired ending inventory for the 4th Quarter is 6,000 pounds. Management plans to pay for 60% of raw material purchases in the quarter acquired and 40% in the following quarter. Each unit requires 0.25 direct labor hours and direct labor hour workers are paid $12 per hour.

Required:
1a.	Prepare the company%u2019s direct materials budget for the upcoming fiscal year. (Input all amounts as positive values. Do not round intermediate calculations.)

Priston Company Direct Materials Budget
	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Year
Production needs pounds
:

Total needs pounds
:

Raw materials to be purchased pounds

Cost of raw materials to be purchased	$	$	$	$	$

1b.

Prepare a schedule of expected cash disbursements for purchases of materials for the upcoming fiscal year. (Leave no cells blank be certain to enter “0” wherever required. Do not round intermediate calculations.)

Priston Company Schedule of Expected Cash Disbursements for Materials
	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Year
Accounts payable, beginning balance	$	$	$	$	$
1st Quarter purchases
2nd Quarter purchases
3rd Quarter purchases
4th Quarter purchases

Total cash disbursements for materials	$	$	$	$	$

2.	Complete the company’s direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

Priston Company Direct Labor Budget
	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Year
Total direct labor hours needed
Total direct labor cost	$	$	$	$	$

need help urgent 449118

Aug 29, 2021 | Uncategorized

Mills Mining is considering an expansion project. The proposed project has the following features. The project has an initial cost of $557 this is also the amount which can be depreciated using the following depreciation schedule: Year 1 is 33%, Year 2 is 45%, Year 3 is 15%, and Year 4 is 7%. If the project is undertaken, at t = 0 the company will need to increase its inventories by $72, and its accounts payable will rise by $60. This net operating working capital will be recovered at the end of the projects life (t = 4). If the project is undertaken, the company will realize an additional $671 in sales over each of the next four years (t = 1, 2, 3, 4). The company%u2019s operating cost (not including depreciation) will equal $372 a year. The company%u2019s tax rate is 40 percent. At t = 4, the projects economic life is complete, but it will have a salvage value of $212. The projects WACC = 10 percent. What are the one time cash flows associated with ending the project (i.e. terminal Cash Flows)? Note, we only want terminal cash flows, not operating cash flows in the last year. Show your answer to the nearest $.01. Do not use the $ or , sign in your answer.

managerial accounting 449125

Aug 29, 2021 | Uncategorized

Morgan, Player, and Associates, a law firm, employs ABC. The following budgeted data for each of the activity cost pools is provided for the year 2013.

Estimated Expected Use of

Activity Cost Pools Overhead Cost Drivers per Activity

Researching legal issues $ 31,500 900 research hours

Meeting with clients 1,760,000 8,800 professional hours

Preparing legal documents 480,000 30,000 pages

During 2013 the firm experienced 800 research hours, prepared 32,000 document pages, and 7,500 professional hours.

Compute the total overhead applied during 2013.

show work if possible.

account 449126

Aug 29, 2021 | Uncategorized

Mulder Corporation’s comparative balance sheets are presented below. MULDER CORPORATION Comparative Balance Sheets December 31 2012 2011 Cash $ 15,200 $ 17,700 Accounts receivable 25,200 22,300 Investments 20,000 16,000 Equipment 60,000 70,000 Accumulated depreciation (14,000) (10,000) Total $106,400 $116,000 Accounts payable $ 14,600 $ 11,100 Bonds payable 10,000 30,000 Common stock 50,000 45,000 Retained earnings 31,800 29,900 Total $106,400 $116,000 Additional information: 1.Net income was $18,300. Dividends declared and paid were $16,400. 2.Equipment which cost $10,000 and had accumulated depreciation of $1,200 was sold for $3,300. 3.All other changes in non current account balances had a direct effect on cash flows, except the change in accumulated depreciation. Prepare a statement of cash flows for 2012 using the indirect method

direct materials variances 449129

Aug 29, 2021 | Uncategorized

MyTime, Inc., produces electronic timepieces. The company uses mini LCD displays for its products. Each timepiece uses one display. The company produced 540 timepieces during October. However, due to LCD defects, the company actually used 570 LCD displays during October. Each display has a standard cost of $8.60. Five hundred seventy LCD displays were purchased for October production at a cost of $4,560.

Determine theprice variance,quantity variance, and total direct materialscost variance for October. Use the minus sign to enter favorable variances as negative numbers.

Price variance:	$	Select Favorable Variance Unfavorable Variance Item 2
Quantity variance:	$	Select Favorable Variance Unfavorable Variance Item 4
Total direct materials cost variance:	$	Select Favorable Variance Unfavorable Variance Item 6

nineteen measures of solvency and profitability 449138

Aug 29, 2021 | Uncategorized

Nineteen Measures of Solvency andProfitability

The comparative financial statements of Blige Inc. are as follows. The market price of Blige Inc. common stock was $66 on December 31, 2012.

Blige Inc.
Comparative Retained Earnings Statement
For the Years Ended December 31, 2012 and 2011
	2012	2011
Retained earnings, January 1	$3,190,450	$2,690,350
Add net income for year	750,000	551,000
Total	$3,940,450	$3,241,350
Deduct dividends:
On preferred stock	$11,900	$11,900
On common stock	39,000	39,000
Total	$50,900	$50,900
Retained earnings, December 31	$3,889,550	$3,190,450

Blige Inc.
Comparative Income Statement
For the Years Ended December 31, 2012 and 2011
	2012	2011
Sales	$4,734,240	$4,355,500
Sales returns and allowances	23,550	15,310
Net sales	$4,710,690	$4,340,190
Cost of goods sold	1,714,770	1,577,590
Gross profit	$2,995,920	$2,762,600
Selling expenses	$995,890	$1,252,230
Administrative expenses	848,350	735,430
Total operating expenses	1,844,240	1,987,660
Income from operations	$1,151,680	$774,940
Other income	60,620	49,460
	$1,212,300	$824,400
Other expense (interest)	360,000	198,400
Income before income tax	$852,300	$626,000
Income tax expense	102,300	75,000
Net income	$750,000	$551,000

Blige Inc.
Comparative Balance Sheet
December 31, 2012 and 2011
	Dec. 31, 2012	Dec. 31, 2011
Assets
Current assets:
Cash	$1,212,220	$731,890
Temporary investments	1,834,710	1,212,830
Accounts receivable (net)	897,900	846,800
Inventories	671,600	511,000
Prepaid expenses	229,338	146,380
Total current assets	$4,845,768	$3,448,900
Long term investments	88,287	706,937
Property, plant, and equipment (net)	6,300,000	5,670,000
Total assets	$11,234,055	$8,411,963
Liabilities
Current liabilities	$1,384,505	$1,281,513
Long term liabilities:
Mortgage note payable, 8%, due 2017	$2,020,000	$0
Bonds payable, 8%, due 2021	2,480,000	2,480,000
Total long term liabilities	$4,500,000	$2,480,000
Total liabilities	$5,884,505	$3,761,513
Stockholders’ Equity
Preferred $0.70 stock, $40 par	$680,000	$680,000
Common stock, $10 par	780,000	780,000
Retained earnings	3,889,550	3,190,450
Total stockholders’ equity	$5,349,550	$4,650,450
Total liabilities and stockholders’ equity	$11,234,055	$8,411,963

Instructions:

Determine the following measures for 2012, rounding to one decimal place, except for dollar amounts, which should be rounded to the nearest cent. Assume 365 days a year.

1. Working capital:	$
2. Current ratio:
3. Quick ratio:
4. Accounts receivable turnover:
5. Number of days’ sales in receivables:
6. Inventory turnover:
7. Number of days’ sales in inventory:
8. Ratio of fixed assets to long term liabilities:
9. Ratio of liabilities to stockholders’ equity:
10. Number of times interest charges are earned:
11. Number of times preferred dividends earned:
12. Ratio of net sales to assets:
13. Rate earned on total assets:		%
14. Rate earned on stockholders’ equity:		%
15. Rate earned on common stockholders’ equity:		%
16. Earnings per share on common stock:	$
17. Price earnings ratio:
18. Dividends per share of common stock:	$
19. Dividend yield:		%

accounting 449140

Aug 29, 2021 | Uncategorized

Nordic Company, a merchandising company, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparation of the master budget for the second quarter.

a.	As of March 31 (the end of the prior quarter), the company%u2019s balance sheet showed the following account balances:


Cash	$	15,000
Accounts receivable		59,200
Inventory		16,920
Buildings and equipment (net)		234,000
Accounts payable			$	24,000
Capital stock				170,000
Retained earnings				131,120

	$	325,120	$	325,120

b.	Actual sales for March and budgeted sales for April%u2013July are as follows:


March (actual)	$74,000
April	$94,000
May	$104,000
June	$109,000
July	$64,000

c.	Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the month following the sale. The accounts receivable at March 31 are a result of March credit sales.
d.	The company%u2019s gross margin percentage is 40% of sales. (In other words, cost of goods sold is 60% of sales.)
e.	Monthly selling and administrative expenses are budgeted as follows: salaries and wages, $12,000 per month; shipping, 6% of sales; advertising, $7,400 per month; other expenses, 4% of sales. Depreciation, including depreciation on new assets acquired during the quarter, will be $6,000 for the quarter.
f.	Each month%u2019s ending inventory should equal 30% of the following month%u2019s cost of goods sold.
g.	Half of a month%u2019s inventory purchases are paid for in the month of purchase and half in the following month.
h.	Equipment purchases during the quarter will be as follows: April, $12,000; and May, $5,000.
i.	Dividends totaling $3,500 will be declared and paid in June.
j.	Management wants to maintain a minimum cash balance of $8,000. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month, up to a total loan balance of $20,000. The interest rate on these loans is 1% per month, and for simplicity, we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter.

Required:
Using the data above, complete the following statements and schedules for the second quarter:
1.	Schedule of expected cash collections:

Schedule of expected cash collections
	April	May	June	Total
Cash sales	$ 18,800	$	$	$
Credit sales	59,200

Total collections	$ 78,000	$	$	$

2a.

Merchandise purchases budget. (Input all amounts as positive values.)

Merchandise purchases budget
	April	May	June	Total
Budgeted cost of goods sold	$ 56,400	$ 62,400	$	$
(Click to select) Add Deduct : desired ending inventory	18,720

Total needs	75,120
(Click to select) Add Deduct : beginning inventory	16,920

Required purchases	$ 58,200	$	$	$

2b.

Schedule of expected cash disbursements for merchandise purchases: (Leave no cells blank be certain to enter “0” wherever required.)

Schedule of cash disbursements for purchases
	April	May	June	Total
For March purchases	$ 24,000	$	$	$ 24,000
For April purchases	29,100	29,100		58,200
For May purchases
For June purchases

Total cash disbursements for purchases	$ 53,100	$	$	$

3.

accounting 449141

Aug 29, 2021 | Uncategorized

Nordic Company, a merchandising company, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparation of the master budget for the second quarter. a. As of March 31 (the end of the prior quarter), the company’s balance sheet showed the following account balances: Cash $ 15,000 Accounts receivable 59,200 Inventory 16,920 Buildings and equipment (net) 234,000 Accounts payable $ 24,000 Capital stock 170,000 Retained earnings 131,120 $ 325,120 $ 325,120 b. Actual sales for March and budgeted sales for April’July are as follows: March (actual) $74,000 April $94,000 May $104,000 June $109,000 July $64,000 c. Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the month following the sale. The accounts receivable at March 31 are a result of March credit sales. d. The company’s gross margin percentage is 40% of sales. (In other words, cost of goods sold is 60% of sales.) e. Monthly selling and administrative expenses are budgeted as follows: salaries and wages, $12,000 per month; shipping, 6% of sales; advertising, $7,400 per month; other expenses, 4% of sales. Depreciation, including depreciation on new assets acquired during the quarter, will be $6,000 for the quarter. f. Each month’s ending inventory should equal 30% of the following month’s cost of goods sold. g. Half of a month’s inventory purchases are paid for in the month of purchase and half in the following month. h. Equipment purchases during the quarter will be as follows: April, $12,000; and May, $5,000. i. Dividends totaling $3,500 will be declared and paid in June. j. Management wants to maintain a minimum cash balance of $8,000. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month, up to a total loan balance of $20,000. The interest rate on these loans is 1% per month, and for simplicity, we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter. Required: Using the data above, complete the following statements and schedules for the second quarter: 1. Schedule of expected cash collections: Schedule of expected cash collections April May June Total Cash sales $ 18,800 $ $ $ Credit sales 59,200 Total collections $ 78,000 $ $ $ 2a. Merchandise purchases budget. (Input all amounts as positive values.) Merchandise purchases budget April May June Total Budgeted cost of goods sold $ 56,400 $ 62,400 $ $ (Click to select)DeductAdd: desired ending inventory 18,720 Total needs 75,120 (Click to select)DeductAdd: beginning inventory 16,920 Required purchases $ 58,200 $ $ $ 2b. Schedule of expected cash disbursements for merchandise purchases: (Leave no cells blank be certain to enter “0” wherever required.) Schedule of cash disbursements for purchases April May June Total For March purchases $ 24,000 $ $ $ 24,000 For April purchases 29,100 29,100 58,200 For May purchases For June purchases Total cash disbursements for purchases $ 53,100 $ $ $ 3. Schedule of expected cash disbursements for selling and administrative expenses: Schedule of cash disbursements for selling and administrative expenses April May June Total Salaries and wages $ 12,000 $ $ $ Shipping 5,640 Advertising 7,400 Other expenses 3,760 Total cash disbursements for selling and administrative expenses $28,800 $ $ $ 4. Cash budget. (Input all amounts as positive values except cash deficiency, repayments and interest which should be indicated by a minus sign. Leave no cells blank be certain to enter “0” wherever required. Total Financing should be indicated with a minus sign when the company is repaying amounts that were previously borrowed.) Nordic Company Cash budget April May June Total Cash balance, beginning $ 15,000 $ $ $ Add cash collections 78,000 Total cash available 93,000 Less cash disbursements: For inventory purchases 53,100 For selling and administrative expenses 28,800 For equipment purchases 12,000 For dividends Total cash disbursements 93,900 Excess (deficiency) of cash (900) Financing: Borrowings Repayments Interest Total financing Cash balance, ending $ $ $ $ 5. Prepare an absorption costing income statement for the quarter ending June 30. (Input all amounts as positive values.) Nordic Company Income Statement For the Quarter Ended June 30 (Click to select)Beginning inventoryGross marginAdvertisingDepreciationGoods available for saleSalesNet operating income (loss)Ending inventory $ Cost of goods sold: (Click to select)SalesGross marginBeginning inventoryNet operating income (loss)DepreciationEnding inventoryGoods available for saleAdvertising $ (Click to select)Net operating income (loss)Gross marginEnding inventorySalesNet income (loss)PurchasesDepreciationGoods available for sales (Click to select)Net operating income (loss)DepreciationNet income (loss)PurchasesGross marginBeginning inventoryAdvertisingGoods available for sale (Click to select)Gross marginBeginning inventoryNet operating income (loss)SalesEnding inventoryPurchasesAdvertisingDepreciation (Click to select)SalesAdvertisingBeginning inventoryGoods available for saleEnding inventoryGross marginNet income (loss)Net operating income (loss) Selling and administrative expenses: (Click to select)Other expensesAdvertisingDepreciationSalaries and wagesShippingGoods available for saleNet operating income (loss)Gross margin (Click to select)Other expensesGross marginShippingAdvertisingSalaries and wagesNet operating income (loss)DepreciationGoods available for sale (Click to select)Gross marginAdvertisingOther expensesNet operating income (loss)Goods available for saleDepreciationSalaries and wagesShipping (Click to select)Gross marginOther expensesShippingNet operating income (loss)Goods available for saleAdvertisingSalaries and wagesDepreciation (Click to select)Gross marginAdvertisingGoods available for saleNet operating income (loss)ShippingDepreciationSalaries and wagesOther expenses (Click to select)Ending inventoryPurchasesAdvertisingGross marginBeginning inventorySalesNet operating income (loss)Goods available for sale (Click to select)Beginning inventoryEnding inventoryInterest expenseAdvertisingSalesGross marginCost of goods manufacturedNet operating income (loss) (Click to select)Ending inventorySalesGross marginBeginning inventoryGoods available for salePurchasesNet income (loss)Advertising $

accounting 449148

Aug 29, 2021 | Uncategorized

After numerous campus interviews, Alex Sanchi, a student at BC, received two office interview invitations from the Orlando offices of two large firms. Both firms offered to cover her “out of pocket expenses” (travel, hotel, and meals). She scheduled the interviews for both firms on the same day, one in the morning and one in the afternoon. At the conclusion of each interview, she submitted to both firms her total out of pocket expenses of $296 for mileage, hotel, meals, parking and tolls. She believes this approach is appropriate. If she had made two trips, her cost would have been two times $296. She is also certain that neither firm knew she had visited the other on that same trip. Within ten days Alex received two checks in the mail, each in the amount of $296.

Did Alex handle the situation properly? If not what should she have done? There are many ways to be hurt. who was hurt by Alex’s actions. how they were hurt. How would you feel if you were the person or one of the persons who were hurt?

sove the following example fast 449151

Aug 29, 2021 | Uncategorized

A fire occurred on 1st February, 2006, in the premises of Pioneer Ltd., a retail store and business was partially disorganised upto 30th June, 2006. The company was insured under a loss of profits for Rs. 1,25,000 with a six months period indemnity. From the following information, compute the amount of claim under the loss of profit policy.
Rs.
Actual turnover from 1st February to 30th June, 2006 80,000
Turnover from 1st February to 30th June, 2005 2,00,000
Turnover from 1st February, 2005 to 31st January, 2006 4,50,000
Net Profit for last financial year 70,000
Insured standing charges for last financial year 56,000
Total standing charges for last financial year 64,000
Turnover for the last financial year 4,20,000
The company incurred additional expenses amounting to Rs. 6,700 which reduced the loss in turnover. There was also a saving during the indemnity period of Rs. 2,450 in the insured standing charges as a result of the fire.
There had been a considerable increase in trade since the date of the last annual accounts and it has been agreed that an adjustment of 15% be made in respect of the upward trend in turnover

oslo company prepared the following contribution format income statement based on a 449158

Aug 29, 2021 | Uncategorized

Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units):


Sales	$	20,000
Variable expenses		12,000

Contribution margin		8,000
Fixed expenses		6,000

Net operating income	$	2,000

Required:

6 If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income?

Net operating income

$

7 If the variable cost per unit increases by $1, spending on advertising increases by $1,500, and unit sales increase by 250 units, what would be the net operating income?

Net operating income

$

8 What is the break even point in unit sales?

Break even point

units

9 What is the break even point in sales dollars?

Break even point

$

10 How many units must be sold to achieve a target profit of $5,000?

Number of units

13 Using the degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales?

Percent increase in net operating income

%

15 Assume that the amounts of the company’s total variable expenses and total fixed expenses were reversed. In other words, assume that the total variable expenses are $6,000 and the total fixed expenses are $12,000. Given this scenario, and assuming that total sales remain the same, calculate the degree of operating leverage. Using the calculated degree of operating leverage, what is the estimated percent increase in net operating income of a 5% increase in sales?

Percent increase in net operating income

%

acct 206 449159

Aug 29, 2021 | Uncategorized

Overhead application: Working backward

The Towson Manufacturing Corporation applies overhead on the basis of machine hours. The following divisional information is presented for your review:

	Division A	Division B
Actual machine hours	22,500	?
Estimated machine hours	20,000	?
Overhead application rate	$4.50	$5.00
Actual overhead	$110,000	?
Estimated overhead	?	$90,000
Applied overhead	?	$86,000
Over (under ) applied overhead	?	$6,500

Find the unknowns for each of the divisions?

intermediate accounting 449161

Aug 29, 2021 | Uncategorized

P17 6 (Trading and Available for Sale Securities Entries) McElroy Company has the following portfolio
of investment securities at September 30, 2012, its last reporting date.

Trading Securities Cost Fair Value

Horton, Inc. common (5,000 shares) $215,000 $200,000

Monty, Inc. preferred (3,500 shares) 133,000 140,000

Oakwood Corp. common (1,000 shares) 180,000 179,000

On October 10, 2012, the Horton shares were sold at a price of $54 per share. In addition, 3,000 shares of

Patriot common stock were acquired at $54.50 per share on November 2, 2012. The December 31, 2012, fair

values were: Monty $106,000, Patriot $132,000, and the Oakwood common $193,000. All the securities are

classified as trading.

Instructions

(a) Prepare the journal entries to record the sale, purchase, and adjusting entries related to the trading

securities in the last quarter of 2012.

(b) How would the entries in part (a) change if the securities were classified as available for sale?

avery and kirk 449168

Aug 29, 2021 | Uncategorized

The partnership of Avery and Kirk was formed on July 1, when George Avery and Dinah Kirk agreed to invest equal amounts and to share profits and losses equally. The investment by Avery consists of $30,000 cash and an inventory of merchandise valued at $56,000. Kirk also is to contribute a total of $86,000. However, it is agreed that her contributions will consist of the transfer of both assets of her business and its liabilities (listed below). A list of the agreed values of the various items as well as their carrying values on Kirk s records follows. Kirk also contributes enough cash to bring her capital account to $86,000.

Investment by Kirk
Balances on Kirks Records Agreed value
Accounts Receivable………………….81,680 79,600
Inventory……………………………….11,400 12,800
Office Equipment (Net)……………….14,300 9,000
Accounts Payable………………………24,800 24,800

a. draft entries in general journal form to record the investments of avery and kirk in the new partnership
b. prepare the beginning balance sheet of the partnership in report form at the close of business july 1 reflecting the above transfers to the firm
c. on the following june 30 after one year of operation the income summary account showed a credit balance of $74,000 and the drawing account for each partner showed a debit balance of $31,000 prepare journal entries tot close the income summary account and the drawing accounts at june 30

accounting question 449179

Aug 29, 2021 | Uncategorized

Pietarsaari Oy, a Finnish company, produces cross country ski poles that it sells for 31 a pair. (The Finnish unit of currency, the euro, is denoted by ) Operating at capacity, the company can produce 51,000 pairs of ski poles a year. Costs associated with this level of production and sales are given below:

	Per Pair		Total
Direct materials		10		510,000
Direct labor		3		153,000
Variable manufacturing overhead		1		51,000
Fixed manufacturing overhead		4		204,000
Variable selling expense		2		102,000
Fixed selling expense		5		255,000

Total cost		25		1,275,000

Required:

1.

The Finnish army would like to make a one time only purchase of 9,300 pairs of ski poles for its mountain troops. The army would pay a fixed fee of 4 per pair, and in addition it would reimburse the Pietarsaari Oy company for its unit manufacturing costs (both fixed and variable). Due to a recession, the company would otherwise produce and sell only 41,700 pairs of ski poles this year. (Total fixed manufacturing overhead cost would be the same whether 41,700 pairs or 51,000 pairs of ski poles were produced.) The company would not incur its usual variable selling expenses with this special order.
If the Pietarsaari Oy company accepts the army%u2019s offer, by how much would net operating income increase or decrease from what it would be if only 41,700 pairs of ski poles were produced and sold during the year? (Input the amount as a positive value..)

(Click to select) Increase Decrease in net operating income

2.

Assume the same situation as described in (1) above, except that the company is already operating at capacity and could sell 51,000 pairs of ski poles through regular channels. Thus, accepting the army%u2019s offer would require giving up sales of 9,300 pairs at the normal price of 31 a pair. If the army%u2019s offer is accepted, by how much will net operating income increase or decrease from what it would be if the 9,300 pairs were sold through regular channels? (Input the amount as a positive value. Omit the sign in your response.)

(Click to select) Decrease Increase in net operating income

fin6 449182

Aug 29, 2021 | Uncategorized

Plank%u2019s Plants had net income of $4,000 on sales of $70,000 last year. The firm paid a dividend of $1,480. Total assets were $200,000, of which $80,000 was financed by debt.

a.	What is the firm%u2019s sustainable growth rate? (Do not round intermediate calculations. Round your answer to 1 decimal place.)

Sustainable growth rate

%

b.	If the firm grows at its sustainable growth rate, how much debt will be issued next year? (Do not round intermediate calculations.)

New debt

$

c.	What would be the maximum possible growth rate if the firm did not issue any debt next year? (Do not round intermediate calculations. Round your answer to 1 decimal place.)

Maximum growth rate

%

chapter 12 managerial accounting question 449185

Aug 29, 2021 | Uncategorized

Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 27,500 Rets per year. Costs associated with this level of production and sales are given below:

	Unit	Total
Direct materials	$11	$267,500
Direct labor	6	147,500
Variable manufacturing overhead	2	51,500
Fixed manufacturing overhead	8	195,500
Variable selling expense	4	99,500
Fixed selling expense	6	147,500
Total cost	$37	$1,003,500

The Rets normally sell for $51 each. Fixed manufacturing overhead is constant at $195,500 per year within the range of 24,000 through 27,500 Rets per year.

rev: 02 12 2011, 01_04_2013

3. value:

1.00 points

Requirement 1:

Assume that due to a recession, Polaski Company expects to sell only 24,000 Rets through regular channels next year. A large retail chain has offered to purchase 3,500 Rets if Polaski is willing to accept a 12% discount off the regular price. There would be no sales commissions on this order; thus, variable selling expenses would be slashed by 70%. However, Polaski Company would have to purchase a special machine to engrave the retail chain’s name on the 3,500 units. This machine would cost $7,000. Polaski Company has no assurance that the retail chain will purchase additional units in the future. Calculate the net increase/decrease in profits next year if this special order is accepted. (Omit the “$” sign in your response.)

Net (Click to select) increase decrease in profits

$

rev: 02 12 2011 ask your instructor a questioncheck my workeBook Linkreferences

4. value:

1.00 points

Requirement 2:

Assume again that Polaski Company expects to sell only 24,000 Rets through regular channels next year. The U.S. Army would like to make a one time only purchase of 3,500 Rets. The Army would pay a fixed fee of $1.63 per Ret, and it would reimburse Polaski Company for all costs of production (variable and fixed) associated with the units. Because the army would pick up the Rets with its own trucks, there would be no variable selling expenses associated with this order. If Polaski Company accepts the order, by how much will profits increase or decrease for the year? (Omit the “$” sign in your response.)

Net (Click to select) decrease increase in profits

$

rev: 02 12 2011, 01_04_2013

ask your instructor a questioncheck my workeBook Linkreferences

5. value:

1.00 points

Requirement 3:

Assume the same situation as that described in Requirement (2) above, except that the company expects to sell 27,500 Rets through regular channels next year. Thus, accepting the U.S. Army’s order would require giving up regular sales of 3,500 Rets. If the Army’s order is accepted, by how much will profits increase or decrease from what they would be if the 3,500 Rets were sold through regular channels? (Input the amount as positive value. Omit the “$” sign in your response.)

Net (Click to select) decrease increase in profits if the Army’s order is accepted

$

portland company s ironton plant accounting 449187

Aug 29, 2021 | Uncategorized

Portland Company’s Ironton Plant produces precast ingots for industrial use. Carlos Santiago, who was recently appointed general manager of the Ironton Plant, has just been handed the plant%u2019s contribution format income statement for October. The statement is shown below:

	Budgeted		Actual
Sales (7,000 ingots)	$	255,000	$	255,000

Variable expenses:
Variable cost of goods sold*		85,400		104,590
Variable selling expenses		15,000		15,000

Total variable expenses		100,400		119,590

Contribution margin		154,600		135,410

Fixed expenses:
Manufacturing overhead		64,000		64,000
Selling and administrative		79,000		79,000

Total fixed expenses		143,000		143,000

Net operating income (loss)	$	11,600	$	(7,590)

*Contains direct materials, direct labor, and variable manufacturing overhead.

Mr. Santiago was shocked to see the loss for the month, particularly because sales were exactly as budgeted. He stated, “I sure hope the plant has a standard cost system in operation. If it doesn’t, I won’t have the slightest idea of where to start looking for the problem.”

The plant does use a standard cost system, with the following standard variable cost per ingot:

	Standard Quantity or Hours	Standard Price or Rate		Standard Cost
Direct materials	4.0 pounds	$	2.40 per pound	$	9.60
Direct labor	0.3 hours	$	7.00 per hour		2.10
Variable manufacturing overhead	0.2 hours*	$	2.50 per hour		0.50

Total standard variable cost				$	12.20

*Based on machine hours.

During October the plant produced 7,000 ingots and incurred the following costs:

a.	Purchased 33,000 pounds of materials at a cost of $2.85 per pound. There were no raw materials in inventory at the beginning of the month.
b.	Used 27,800 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be ignored.)
c.	Worked 2,700 direct labor hours at a cost of $6.70 per hour.
d.	Incurred total variable manufacturing overhead cost of $4,930 for the month. A total of 1,700 machine hours was recorded.

It is the company%u2019s policy to close all variances to cost of goods sold on a monthly basis.

1.	Compute the following variances for October:

a.	Direct materials price and quantity variances. (Input all amounts as positive values. Leave no cells blank be certain to enter “0” wherever required. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance.)


Materials price variance	$	(Click to select) F U None
Materials quantity variance	$	(Click to select) F None U

b.	Direct labor rate and efficiency variances. (Input all amounts as positive values. Leave no cells blank be certain to enter “0” wherever required. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance.)


Labor rate variance	$	(Click to select) F U None
Labor efficiency variance	$	(Click to select) None U F

c.

Variable overhead rate and efficiency variances. (Input all amounts as positive values. Do not round your intermediate calculations. Leave no cells blank be certain to enter “0” wherever required. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance.)


Variable overhead rate variance	$	(Click to select) F None U
Variable overhead efficiency variance	$	(Click to select) F U None

2a.

Summarize the variances that you computed in (1) above by showing the net overall favorable or unfavorable variance for October. (Input the amount as a positive value. Leave no cells blank be certain to enter “0” wherever required. Indicate the effect of variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance.)

Net variance

$

(Click to select) U F None

3.

Pick out the two most significant variances that you computed in (1) above. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)

	Materials price variance
	Labor efficiency variance
	Variable overhead efficiency variance
	Labor rate variance
	Variable overhead rate variance
	Materials quantity variance

managerial accounting 449189

Aug 29, 2021 | Uncategorized

Powell Company produces a single product. Its income statement under absorption costing for its first two years of operation follow.

		2010		2011
Sales ($48 per unit)	$	1,056,000	$	2,016,000
Cost of goods sold ($33 per unit)		726,000		1,386,000

Gross margin		330,000		630,000
Selling and administrative expenses		278,500		313,500

Net income	$	51,500	$	316,500

*Additional Information*
a.	Sales and production data for these first two years follow.

	2010	2011
Units produced	32,000	32,000
Units sold	22,000	42,000

b.	Variable cost per unit and total fixed costs are unchanged during 2010 and 2011. The company’s $33 per unit product cost consists of the following.


Direct materials	$	5
Direct labor		8
Variable overhead		10
Fixed overhead ($320,000/32,000 units)		10

Total product cost per unit	$	33

c.	Selling and administrative expenses consist of the following.

		2010		2011
Variable selling and administrative ($1.75 per unit)	$	38,500	$	73,500
Fixed selling and administrative		240,000		240,000

Total selling and administrative	$	278,500	$	313,500

1.	Prepare income statements for the company for each of its first two years under variable costing. (Input all amounts as positive values except net loss which should be indicated with a minus sign. Omit the “$” sign in your response.)

POWELL COMPANY Variable Costing Income Statements
	2010	2011
	$	$
Variable expenses



Total variable costs


Fixed expenses



Total fixed expenses

Net income/(loss)	$	$

2.	What are the difference between the absorption costing income and the variable costing income for these two years. (Negative amounts should be indicated by a minus sign. Omit the “$” sign in your response.)

POWELL COMPANY Reconciliation of Variable Costing Income to Absorption Costing Income
	2010	2011
Variable costing income	$	$
Fixed overhead in ending inventory
Fixed overhead in beginning inventory

Absorption costing income	$	$

statement of cash flows indirect method help please 448987

Aug 29, 2021 | Uncategorized

I need help finishing this problem, I’m really struggling on the cash flow from financing activities and that is all I need to finish this problem, can someone please help and show me how you got the numbers?!?!

Statement of Cash Flows%u2014Indirect Method

The comparative balance sheet of Mavenir Technologies Inc. for December 31, 2013 and 2012, is shown as follows:

Dec. 31, 2013		Dec. 31, 2012
Assets
Cash		$241,560	$227,290
Accounts receivable (net)		87,510	81,630
Inventories		247,030	241,700
Investments		0	93,640
Land		126,700	0
Equipment		272,550	213,690
Accumulated depreciation equipment		(63,810)	(57,620)
Total	$911,540	$800,330
Liabilities and Stockholders’Equity
Accounts payable (merchandise creditors)		$164,990	$157,670
Accrued expenses payable (operating expenses)		16,410	20,810
Dividends payable		9,120	7,200
Common stock, $10 par		49,220	39,220
Paid in capital in excess of par common stock		185,040	108,840
Retained earnings		486,760	466,590
Total	$911,540	$800,330

The following additional information was taken from the records:

a. The investments were sold for $109,560 cash.

b. Equipment and land were acquired for cash.

c. There were no disposals of equipment during the year.

d. The common stock was issued for cash.

e. There was a $57,790 credit to Retained Earnings for net income.

f. There was a $37,620 debit to Retained Earnings for cash dividends declared.

Instructions:

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use a minus sign to indicate cash outflows, negative amounts or a decrease in cash.

Mavenir Technologies Inc.

Statement of Cash Flows

For the Year Ended December 31, 2013

Cash flows from operating activities:

Cash paid for land
Cash received from sale of investments
Cash received from sale of common stock
Net income

Correct 5

$ Correct 6

Adjustments to reconcile net income to net cash flow from operating activities:

Cash paid for land
Cash paid for dividends
Cash received from sale of common stock
Depreciation

Correct 8

Correct 9

Cash paid for dividends
Cash received from net income
Gain on sale of investments
Loss on sale of investments

Correct 10

Correct 11

Changes in current operating assets and liabilities:

Decrease in accounts receivable
Decrease in inventories
Depreciation
Increase in accounts receivable

Correct 13

Correct 14

Decrease in accounts payable
Decrease in accounts receivable
Decrease in inventories
Increase in inventories

Correct 15

Correct 16

Decrease in accounts payable
Decrease in inventories
Increase in accounts payable
Increase in accrued expenses

Correct 17

Correct 18

Decrease in accounts payable
Decrease in accrued expenses payable
Depreciation
Increase in accrued expenses payable

Correct 19

Correct 20

Net cash flow from operating activities

$ Correct 22

Cash flows from investing activities:

Cash received from sale of common stock
Cash received from sale of investments
Cash received from net income
Cash received from gain on sale of investments

Correct 24

$ Correct 25

Less cash paid for depreciation
Less cash paid for dividends
Less cash paid for purchase of land
Less cash paid for accounts payable

Correct 26

$ Correct 27

Less cash paid for accumulated depreciation
Less cash paid for accounts receivable
Less cash paid for inventories
Less cash paid for purchase of equipment

Correct 28

Correct 29

Correct 30

Net cash flow used for investing activities

Correct 32

Cash flows from financing activities:

Cash received from sale of common stock
Cash received from net income
Cash received from sale of investments
Cash received from retained earnings

Correct 34

$ Correct 35

Cash paid for inventories
Cash paid for purchase of land
Cash paid for purchase of equipment
Less cash paid for dividends

Correct 36

Correct 37

Net cash flow provided by financing activities

Correct 39

Decrease in cash
Increase in cash

Correct 40

$ Correct 41

Cash at beginning of the year

Correct 43

Cash at end of the year

$

p12 14 prepare a contribution margin format income statement answer what if question 448989

Aug 29, 2021 | Uncategorized

I AM OFFERING ALOT OF POINTS SO PLEASE ANSWER THEM CORRECTLY WITH EXPLANATIONS

Shown here is an income statement in the traditional format for a firm with a sales volume of 16,500 units:


Revenues	$	181,500
Cost of goods sold ($10,500 + $2.85/unit)		57,525

Gross profit	$	123,975
Operating expenses:
Selling ($2,250 + $1.00/unit)		18,750
Administration ($4,600 + $.35/unit)		10,375

Operating income	$	94,850

Prepare an income statement in the contribution margin format. (Omit the “$” sign in your response.)

(IN CASE THE DROP DOWN BOXES DONT DISPLAY THE INFO. OR PROPERLY..the first box is revenues and is correct

I got all of the drop down boxes correct..they are as follows: box2 cost of good sold box 3 selling expenses box 4 administrative expenses box 5 under dixed expenses cost of good sold box 6 administrative expenses box7 selling expenses box8 under total fixed is operating income. SO NOW JUST NEED THE NUMBERS/amounts (for requirement 3 and 4 the drop down for all are operating income)

1. revenues $__________

VARIABLE EXPENSES:

2. Cost of goods sold $_____________

3. selling expenses $_____________

4. administrative expenses $_________

TOTAL VARIABLE EXPENSES: __________

CONTRIBUTION MARGIN:__________

FIXED EXPENSES:

5.cost of good sold $_______

6. administative expenses $__________

7. selling expenses

TOTAL FIXED EXPENSES:_______

OPERATING INCOME$____________

Calculate the contribution margin per unit and the contribution margin ratio. (Round your answers to 2 decimal places. Omit the “$” and “%” signs in your response.)

Contribution margin per unit	$
Contribution margin ratio	%

Requirement 3:
(a)	Calculate the firm’s operating income (or loss) if the volume changed from 16,500 units to 21,500 units.(Do not round your intermediate calculations. Input the amount as positive value. Omit the “$” sign in your response.)

OPERATING INCOME $__________

(b)

Calculate the firm’s operating income (or loss) if the volume changed from 16,500 units to 8,500 units.(Do not round your intermediate calculations. Input the amount as positive value. Omit the “$” sign in your response.)

OPERATING INCOME$__________

Requirement 4:
Refer to your answer to requirement 1 when total revenues were $181,500.
(a)	Calculate the firm’s operating income (or loss) if unit selling price and variable expenses do not change, and total revenues increase by $14,500. (Do not round your intermediate calculations. Input the amount as positive value. Round your answer to the nearest dollar amount. Omit the “$” sign in your response.)

OPERATING INCOME$___________

(b)

Calculate the firm’s operating income (or loss) if unit selling price and variable expenses do not change, and total revenues decrease by $7,500. (Do not round your intermediate calculations. Input the amount as positive value. Round your answer to the nearest dollar amount. Omit the “$” sign in your response.)

OPERATING INCOME$__________

introduction to accounting question how would i record the following transactions 448994

Aug 29, 2021 | Uncategorized

How would i record the following transactions?

2	Purchased 7 units Swish Phones from Pear Technology at $1,782 each (includes 10% GST), Purchase #321, Supplier Inv#460. Issued Cheque No. 4047 for $5,200 to this supplier for this particular invoice at the time of the purchase.
2	Issued Cheque No. 4049 for $1,100 (includes 10% GST) to Discount Office Supplies for the cash purchase of office supplies.
2	Obtained a loan of $18,000 from Uncle Edgar (a family relative of Richard Cohen) at a simple interest rate of 8% per year, Cheque No. 172, ID #CR000001. The principal and interest on the loan are payable in six months time.
3	Received Cheque No. 219 from Radio Hut for the full amount outstanding on their account, ID #CR000002.
5	Issued Cheque No. 4050 for $10,219 to JCN Electrical in payment of Purchase #318 (Supplier Inv#227).
5	Sold the following items on credit to Handys Electronics, Invoice #3522: 2 units BlueBerry phones for $1,650 each (includes 10% GST) 3 units ZII game consoles for $2,530 each (includes 10% GST). $4,000 was received immediately, Cheque No. 606, with the rest due to be received during the last week of the month. Note that MYOB automatically assigns ID #CR000003 to this cash receipt. Thank you 🙂

accounting 002 help stuck 449001

Aug 29, 2021 | Uncategorized

I started this problem but im stuck could someone please help it would be very appreciated

Managerial Term Problem

Major League Bat Company manufactures baseball bats. In addition to its goods in process inventories, the company maintains inventories of raw materials and finished goods. It uses raw materials as direct materials in production and as indirect materials. Its factory payroll costs include direct labor for production and indirect labor. All materials are added at the beginning of the process, and direct labor and factory overhead are applied uniformly throughout the production process and the company uses a perpetual inventory system)..

Required:

You are to maintain records and produce measures of inventories to reflect the July events of this company. Set up the following general ledger accounts and enter the June 30 balances:

Cash

Raw materials inventory goods in process inventory

$355,887 35,000 13,113

124,000 528,000

$2,800 4,500 5,813

of direct materials of direct labor

of overhead

Finished goods inventory

capital, major league bat company sa;es

cost of goods sold

factory payroll

fatory overhead

1. Prepare journal entries to record the following July transactions and events. Use the letters of the transaction below as the dates for each entry.

a. Purchased raw materials for $ 127,000 cash.
b. Used raw materials as follows: direct materials, $ 49,000 ; and indirect materials,

$ 15,000 .
c. Incurred factory payroll cost of $ 186,850 paid in cash (ignore taxes).
d. Assigned factory payroll costs as follows: direct labor, $ 159,375 ; and indirect labor,

$ 27,475 .
e. Incurred additional factory overhead costs of $ 37,955 paid in cash. f. Allocated factory overhead to production at 50% of direct labor costs.

2. Information about the July inventories follows. Use this information with that from part 1 to prepare a process cost summary, assuming the weighted average method is used. (Round your cost per EUP answers to 2 decimal places for “Cost per EUP” and “Cost assignment and reconciliation”.

Units:

beginning inventory started

ending inventory

Beginning Inventory:

Materials percent complete

conversion costs percent complete

Ending Inventory:

Materials percent complete conversion costs percent complete

7,500 units 11,000 units 8,500 units

100% 80%

100% 50%

g. Total costs transferred to finished goods for July.
h. Sale of finished goods costing $ 181,578 for $645,000 in cash.

4. Complete the General Ledgers by posting the entries from the General Journal.

Adjust the Factory Overhead account for Underapplied or Overapplied Overhead.

f. Using the part 3 journal, prepare the journal entry for the adjustment of the Factory Overhead account.

5. Compute the amount of gross profit from the sales in July.

accounting 2101 449008

Aug 29, 2021 | Uncategorized

The income statement and additional data of Robinson & Company follow:

Robinson & Company
Income Statement
For the Year Ended December 31, 2006

Revenue:
Sales………………………………$229,000
Expenses:
Cost of Goods Sold..$103,000
Salary Expense………. 45,000
Depreciation Expense..29,000
Advertising Expense…..4,000
Total Expenses…………………181,000
Net Income……………………..$48,000

From the balance sheet:
………………………………………………2006……….. 2005
Cash……………………………………..34000………..20000
Accounts Receivable………………..43000………..58000
Inventory……………………………….83000………..77000
Prepaid Expenses…………………….9000………….8000
Accounts Payable…………………….35000………..22000
Accrued Liabilities…………………….13000………..21000

Prepare the operating section of Robinson & Company’s statement of cash flows for the year ended December 31, 2006.

managerial accounting 449016

Aug 29, 2021 | Uncategorized

Island Novelties, Inc., of Palau makes two products, Hawaiian Fantasy and Tahitian Joy. Present revenue, cost, and sales data for the two products follow: Hawaiian Fantasy Tahitian Joy Selling price per unit $5.30 $7.95 Variable expenses per unit $3.18 $1.59 Number of units sold annually 260 104 Fixed expenses total $610 per year. The Republic of Palau uses the U.S. dollar as its currency. Requirement 1: Assuming the sales mix given above, do the following: (a) Prepare a contribution format income statement showing both dollar and percent columns for each product and for the company as a whole. (Round your dollar values to 2 decimal places. Omit the “$” and “%” signs in your response.) Hawaiian Fantasy Tahitian Joy Total Amount % Amount % Amount % Sales $ $ $ Variable expenses Contribution margin $ $ Fixed expenses $ (b) Compute the break even point in dollars for the company as a whole and the margin of safety in both dollars and percent. (Round your answers to 2 decimal places. Omit the “$” and “%” signs in your response.) Break even point in dollars $ Margin of safety $ Margin of safety percentage % Requirement 2: The company has developed a new product to be called Samoan Delight. Assume that the company could sell 52 units at $10.60 each. The variable expenses would be $7.95 each. The company’s fixed expenses would not change. (a) Prepare another contribution format income statement, including sales of the Samoan Delight (sales of the other two products would not change). (Round your dollar values to 2 decimal places. Omit the “$” and “%” signs in your response.) Hawaiian Fantasy Tahitian Joy Samoan Delight Total Amount % Amount % Amount % Amount % Sales $ $ $ $ Variable expenses Contribution margin $ $ $ Fixed expenses $ (b) Compute the company’s new break even point in dollars and the new margin of safety in both dollars and percent. (Round your answers to 2 decimal places. Omit the “$” and “%” signs in your response.) Break even point in dollars $ Margin of safety $ Margin of safety percentage % Feather Friends, Inc., distributes a high quality wooden birdhouse that sells for $20 per unit. Variable costs are $10.00 per unit, and fixed costs total $165,000 per year. 3.value: 2.00 points Requirement 3: Due to an increase in demand, the company estimates that sales will increase by $56,000 during the next year. By how much should net operating income increase (or net loss decrease) assuming that fixed costs do not change? (Omit the “$” sign in your response.) Increased net operating income $ rev: 02 09 2011 check my workeBook Links (5)references 4.value: 2.00 points Requirement 4: Assume that the operating results for last year were: Sales $560,000 Variable expenses 280,000 Contribution margin 280,000 Fixed expenses 165,000 Net operating income $115,000 (a) Compute the degree of operating leverage at the current level of sales. (Round your answer to 2 decimal places.) Degree of operating leverage (b) The president expects sales to increase by 17% next year. By what percentage should net operating income increase? (Round your answer to 2 decimal places. Omit the “%” sign in your response.) Increase in net operating income % rev: 02 09 2011 check my workeBook Links (5)references 5.value: 2.00 points Requirement 5: Refer to the original data. Assume that the company sold 29,000 units last year. The sales manager is convinced that a 13% reduction in the selling price, combined with a $77,000 increase in advertising, would cause annual sales in units to increase by one third. (a) Prepare two contribution format income statements, one showing the results of last year’s operations and one showing the results of operations if these changes are made. (Round your per unit values to 2 decimal places and other answers to the nearest dollar amount. Omit the “$” sign in your response.) Last Year: 29,000 units Proposed: 38,667 units Amount Per Unit Amount Per Unit Sales $ $ $ $ Variable expenses Contribution margin $ $ Fixed expenses Net operating income $ $ (b) Would you recommend that the company do as the sales manager suggests? rev: 02 09 2011 check my workeBook Links (5)references 6.value: 2.00 points Requirement 6: Refer to the original data. Assume again that the company sold 29,000 units last year. The president does not want to change the selling price. Instead, he wants to increase the sales commission by $1.7 per unit. He thinks that this move, combined with some increase in advertising, would increase annual sales by 35%. By how much could advertising be increased with profits remaining unchanged? (Negative amount should be indicated by a minus sign. Do not prepare an income statement; use the incremental analysis approach. Omit the “$” sign in your response.) The amount by which advertising can be increased $ rev: 02 09 2011

recording bond issue interest payments straight line amortization and early bond ret 449022

Aug 29, 2021 | Uncategorized

On January 1, 2012, Loop Raceway Issued 650 bonds, each with a face value of $1,000, a stated interest rate of 7% paid annually on December 31, and a maturity date of December 31, 2014. On the issue date, the market interest rate was 8 percent, so the total proceeds from the bond issue were $633,228. Loop uses the straight line bond amortization method and adjusts for any rounding errors when recording interest in the final year.

Required:

1. Prepare a bond amortization schedule.

What is the value for cash paid and interest expense, as well as the empty cell in discount on bonds since I have to account for rounding errors.

Thanks

accounting help 449026

Aug 29, 2021 | Uncategorized

On January 1, Richard Company acquired all the net assets of Ulmer Company by issuing bonds with a face value and fair value of $500,000 and cash of $300,000. The fair values of Ulmer’s identifiable net assets equaled their book values, except for buildings and equipment, which had a fair value of $120,000 greater than book value. Balance sheets for the two companies immediately preceding the acquisition were as follows:

	Richard Co.	Ulmer Co.
Cash	$400.000	$150,000
Buildings & Equipment	$700,000	$400,000
Accumulated Depreciation	$(300,000)	$(150,000)
Other Identifiable Assets	$100,000	$200,000
Total Assets	$900,000	$600,000

Liabilities	$200,000	$100,000
Common Stock	$400.000	$300,000
Additional Paid In Capital	$160,000	$100,000
Retained Earnings	$140,000	$100,000
Total Liabilities and Equity	$900,000	$600,000

Based on the information given above, the amount of Goodwill to be recognized in connection with the merger is:

Options:

A. 0
B. $180,000
C. $200,000
D. $300,000

Red Corporation merged with White Corporation. In the combination, White issued 27,000 shares of common stock, which at the date of combination had a market price of $18 per share. White acquired 100 percent of Red’s voting common stock. The stockholders’ equity section of each company’s balance sheet just before the combination was:

	White	Red
Common Stock ($10 par)	$300,000	$150,000
Additional Paid In Capital	$150,000	$30,000
Retained Earnings	$640,000	$120,000
	$990,000	$300,000

Refer to the above information. Assume the fair value of Red’s identifiable net assets is $50,000 greater than their book value. In the balance sheet prepared immediately following the combination, goodwill should be reported at:

Options:

A. 0
B. $50,000
C. $136,000
D. $186,000

Stacey Co. exchanged 10,000 shares of common stock with a par value of $10 and market value of $25 for all the net assets of Taam Co. in a business combination. Legal costs to effect the merger totaled $10,000, and stock issue costs were $12,000. As a result of the combination, Stacey Co. should record increases in net assets and additional paid in capital of:

Options:

	Net Assets	Additional Paid In Capital
A.	$250,000	$138,000
B.	$260,000	$138,000
C.	$260,000	$150,000
D.	$272,000	$150,000

does cash outflow from operating activities change or remain constant each year why 449027

Aug 29, 2021 | Uncategorized

On January 1, Year XXX1, Holmes Co. borrowed cash from Legacy Bank by issuing an $80,000 face value, three year term note that had a 7% annual interest rate. The note is to be repaid by making annual payments of $30,484 that include both interest and principal on December 31 beginning Year XXX1. Holmes Co. invested the proceeds from the loan in land that generated lease revenue of $40,000 cash per year. Required: a) Prepare an amortization schedule for the $80,000 note for the three year period (i.e. show the amount applied towards interest and the amount applied to the principal for each of the four payments that Homes Co makes to Legacy Bank). Round off all calculations to the nearest dollar. b) Prepare an income statement for each of the three years; prepare a balance sheet as of December 31for each of the three years (Years XXX1 through XXX3). Assume that Homes started business on January 1, Year XXX1 by issuing common stock for $1,000 cash. c) Does cash outflow from operating activities change or remain constant each year? Why?

accounting help 449028

Aug 29, 2021 | Uncategorized

On January 20, 2011, Tamira Nelson, the accountant for Picton Enterprises, is feeling pressure to complete the annual financial statements. The company president has said he needs up to date financial statements to share with the bank on January 21 at a dinner meeting that has been called to discuss Picton%u2019s obtaining loan financing for a special building project. Tamira knows that she will not be able to gather all the needed information in the next 24 hours to prepare the entire set of adjusting entries. Those entries must be posted before the financial statements accurately portray the company%u2019s performance and financial position for the fiscal period ended December 31, 2010. Tamira ultimately decides to estimate several expense accruals at the last minute. When deciding on estimates for the expenses, she uses low estimates because she does not want to make the financial statements look worse than they are. Tamira finishes the financial statements before the deadline and gives them to the president without mentioning that several account balances are estimates that she provided.

Required

Identify several courses of action that Tamira could have taken instead of the one she took.
If you were in Tamira%u2019s situation, what would you have done? Briefly justify your response

donot copy from others please=)

managerial accounting 449035

Aug 29, 2021 | Uncategorized

Jetson Co. sold 19,100 units of its only product and incurred a $63,282 loss (ignoring taxes) for the current year as shown here. During a planning session for year 2012%u2019s activities, the production manager notes that variable costs can be reduced 50% by installing a machine that automates several operations. To obtain these savings, the company must increase its annual fixed costs by $141,000. The maximum output capacity of the company is 40,000 units per year.

JETSON COMPANY Contribution Margin Income Statement For Year Ended December 31, 2011
Sales	$	699,060
Variable costs		489,342

Contribution margin		209,718
Fixed costs		273,000

Net loss	$	(63,282	)

rev: 02_07_2012

Required:
1.	Compute the break even point in dollar sales for year 2011. (Round your intermediate calculations to 2 decimal places and final answer to nearest dollar amount. Omit the “$” sign in your response.)

Break even point in dollar sales for year 2011

$

2.	Compute the predicted break even point in dollar sales for year 2012 assuming the machine is installed and there is no change in the unit sales price. (Round your intermediate calculations to 2 decimal places and final answer to nearest dollar amount. Omit the “$” sign in your response.)

Break even point in dollar sales for year 2012

$

rev: 02_07_2012

3.

Prepare a forecasted contribution margin income statement for 2012 that shows the expected results with the machine installed. Assume that the unit sales price and the number of units sold (19,100 units) will not change, and no income taxes will be due. (Input all amounts as positive values. Omit the “$” sign in your response.)

JETSON COMPANY Forecasted Contribution Margin Income Statement For Year Ended December 31, 2012
	$





Net income	$

help 449046

Aug 29, 2021 | Uncategorized

Julia’s Candy Co. reports the following information from its sales account and sales budget:

Sales	May	$106,000
	June	94,000

Expected Sales:	July	$91,000
	August	111,000
	September	121,000

Cash sales are normally 30% of total sales and all credit sales are expected to be collected in the month following the date of sale.

If Julia’s pays sales commission of 11% each month, in addition to fixed costs of $4,100, calculate the selling expenses for the third quarter.

	$35,530
	$39,630
	$43,730
	$47,830
	$51,930

you have just been hired as a new management trainee by earrings unlimited 449050

Aug 29, 2021 | Uncategorized

You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash.

Since you are well trained in budgeting, you have decided to prepare comprehensive budgets for the upcoming second quarter in order to show management the benefits that can be gained from an integrated budgeting program. To this end, you have worked with accounting and other areas to gather the information assembled below.

The company sells many styles of earrings, but all are sold for the same price%u2014$14 per pair. Actual sales of earrings for the last three months and budgeted sales for the next six months follow (in pairs of earrings):


January (actual)	20,900	June (budget)	50,900
February (actual)	26,900	July (budget)	30,900
March (actual)	40,900	August (budget)	28,900
April (budget)	65,900	September (budget)	25,900
May (budget)	100,900

The concentration of sales before and during May is due to Mother’s Day. Sufficient inventory should be on hand at the end of each month to supply 30% of the earrings sold in the following month.

Suppliers are paid $8 for a pair of earrings. One half of a month’s purchases is paid for in the month of purchase; the other half is paid for in the following month. All sales are on credit, with no discount, and payable within 15 days. The company has found, however, that only 20% of a month’s sales are collected in the month of sale. An additional 60% is collected in the following month, and the remaining 20% is collected in the second month following sale. Bad debts have been negligible.

Monthly operating expenses for the company are given below:


Variable:
Sales commissions	4	% of sales
Fixed:
Advertising	$	199,100
Rent	$	17,100
Salaries	$	105,100
Utilities	$	6,100
Insurance	$	2,100
Depreciation	$	13,100

Insurance is paid on an annual basis, in November of each year.

The company plans to purchase $15,300 in new equipment during May and $39,100 in new equipment during June; both purchases will be for cash. The company declares dividends of $10,500 each quarter, payable in the first month of the following quarter.

A listing of the company’s ledger accounts as of March 31 is given below:


Assets			Liabilities and Stockholders’ Equity
Cash	$	150,000	Accounts payable	$	193,600
Accounts receivable ($75,320 February sales; $458,080 March sales)		533,400	Dividends payable		10,500
Inventory		158,160	Capital stock		890,000
Prepaid insurance		21,900	Retained earnings		589,000
Property and equipment (net)		819,640

Total assets	$	1,683,100	Total liabilities and stockholders’ equity	$	1,683,100

The company maintains a minimum cash balance of $30,000. All borrowing is done at the beginning of a month; any repayments are made at the end of a month.

The company has an agreement with a bank that allows the company to borrow in increments of $1,000 at the beginning of each month. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. At the end of the quarter, the company would pay the bank all of the accumulated interest on the loan and as much of the loan as possible (in increments of $1,000), while still retaining at least $30,000 in cash.

Prepare a master budget for the three month period ending June 30. Include the following detailed budgets:

(c)

A merchandise purchases budget in units and in dollars. (Omit the “$” sign in your response.)

	April	May	June	Quarter
Required unit purchases
Required dollar purchases	$	$	$	$

(d)

A schedule of expected cash disbursements for merchandise purchases, by month and in total. (Leave no cells blank be certain to enter “0” wherever required. Omit the “$” sign in your response.)

	April	May	June	Quarter
Accounts payable	$	$	$	$
April purchases
May purchases
June purchases

Total cash payments	$	$	$	$

securidoor corporation accouting 449055

Aug 29, 2021 | Uncategorized

You have just been hired by SecuriDoor Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company%u2019s costing system and %u201Cdo what you can to help us get better control of our manufacturing overhead costs.%u201D You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control.

After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for April:

	Cost Formula	Actual Cost in April
Utilities	$ 16,700 plus $.16 per machine hour	$	21,700
Maintenance	$ 38,800 plus $1.50 per machine hour	$	62,600
Supplies	$ .90 per machine hour	$	17,800
Indirect labor	$ 94,600 plus $2.00 per machine hour	$	135,500
Depreciation	$ 67,900	$	69,600

During April, the company worked 18,000 machine hours and produced 12,000 units. The company had originally planned to work 20,000 machine hours during April.

1.	Prepare a flexible budget for April. (Input all amounts as positive values.)

SecuriDoor Corporation Flexible Budget For the Month Ended April 30
Machine hours
Utilities	$
Maintenance
Supplies
Indirect labor
Depreciation

Total	$

2.

Prepare a report showing the spending variances for April. (Input all amounts as positive values.Leave no cells blank be certain to enter “0” wherever required. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance).)

SecuriDoor Corporation Spending Variances For the Month Ended April 30
	Flexible Budget	Actual Results	Spending variance
Utilities	$	$	$	(Click to select) F U None
Maintenance				(Click to select) None F U
Supplies				(Click to select) F U None
Indirect labor				(Click to select) F U None
Depreciation				(Click to select) F U None

Total	$	$	$	(Click to select) F U None

managerial accounting help 449060

Aug 29, 2021 | Uncategorized

Kasik Co. budgeted the following cash receipts and cash disbursements for the first three months of next year:

	Cash Receipts		Cash Disbursements
January	$	500,000	$	450,000
February		300,000		250,000
March		400,000		500,000

According to a credit agreement with the company%u2019s bank, Kasik promises to have a minimum cash balance of $30,000 at each month end. In return, the bank has agreed that the company can borrow up to $150,000 at an annual interest rate of 12%, paid on the last day of each month. The interest is computed based on the beginning balance of the loan for the month. The company has a cash balance of $30,000 and a loan balance of $60,000 at January 1.

Prepare monthly cash budgets for each of the first three months of next year.

How was the march beginning balance calculated?

KASIK COMPANY Cash Budget For January, February, and March
	January	February	March
(Click to select) Beginning cash balance Ending cash balance Cash disbursements Interest on bank loan Preliminary cash balance	$	$	$
(Click to select) Miscellaneous expense Cash receipts Other expenses Bank charges Interest expense

Total cash available
(Click to select) Preliminary cash balance Cash receipts Payments for merchandise Repayment of loan to bank Cash disbursements
(Click to select) Bank charges Cash receipts Interest expense Miscellaneous expense Other expenses

(Click to select) Preliminary cash balance Payments for merchandise Ending cash balance Beginning cash balance Interest expense
(Click to select) Payments for merchandise Ending cash balance Additional loan from bank Cash disbursements Interest expense
(Click to select) Beginning cash balance Payments for merchandise Interest on bank loan Ending cash balance Repayment of loan to bank

(Click to select) Additional loan from bank Beginning cash balance Ending cash balance Interest on bank loan Preliminary cash balance	$	$	$

(Click to select) Beginning cash balance Ending loan balance Additional loan from bank Repayment of loan to bank Ending cash balance	$	$	$

accounting 449062

Aug 29, 2021 | Uncategorized

Kazaam Company, a merchandiser, recently completed its calendar year 2011 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. The company%u2019s balance sheets and income statement follow.

KAZAAM COMPANY
Comparative Balance Sheets
December 31, 2011 and 2010
2011 2010
Assets
Cash $ 49,200 $ 74,000
Accounts receivable 65,810 55,000
Merchandise inventory 276,000 251,000
Prepaid expenses 1,500 1,900
Equipment 159,000 107,500
Accum. depreciation%u2014Equipment (35,750) (46,000)

Total assets $ 515,760 $ 443,400

Liabilities and Equity
Accounts payable $ 59,835 $ 112,000
Short term notes payable 10,000 6,000
Long term notes payable 70,000 49,000
Common stock, $5 par value 162,250 150,250
Paid in capital in excess of par, common stock 36,000 0
Retained earnings 177,675 126,150

Total liabilities and equity $ 515,760 $ 443,400

KAZAAM COMPANY
Income Statement
For Year Ended December 31, 2011
Sales $ 582,500
Cost of goods sold 289,000

Gross profit 293,500
Operating expenses
Depreciation expense $ 20,000
Other expenses 133,600 153,600

Other gains (losses)
Loss on sale of equipment 5,375

Income before taxes 134,525
Income taxes expense 25,500

Net income $ 109,025

Additional Information on Year 2011 Transactions
a.
The loss on the cash sale of equipment was $5,375 (details in b).
b.
Sold equipment costing $47,250, with accumulated depreciation of $30,250, for $11,625 cash.
c.
Purchased equipment costing $98,750 by paying $35,000 cash and signing a long term note payable for the balance.
d.
Borrowed $4,000 cash by signing a short term note payable.
e.
Paid $42,750 cash to reduce the long term notes payable.
f.
Issued 2,400 shares of common stock for $20 cash per share.
g. Declared and paid cash dividends of $57,500.

Required:
Prepare a complete statement of cash flows using a spreadsheet report its operating activities using the indirect method. (Leave no cells blank be certain to enter “0” wherever required. Omit the “$” sign in your response.)

a. Net income was $109,025.
b. Accounts receivable increased.
c. Merchandise inventory increased.
d. Prepaid expenses decreased.
e. Accounts payable decreased.
f. Depreciation expense was $20,000.
g.
Sold equipment costing $47,250, with accumulated depreciation of $30,250, for $11,625 cash. This yielded a loss of $5,375.
h.
Purchased equipment costing $98,750 by paying $35,000 cash and (i.) by signing a long term note payable for the balance.
j. Borrowed $4,000 cash by signing a short term note payable.
k. Paid $42,750 cash to reduce the long term notes payable.
l. Issued 2,400 shares of common stock for $20 cash per share.
m. Declared and paid cash dividends of $57,500.

KAZAAM COMPANY
Spreadsheet for Statement of Cash Flows
For Year Ended December 31, 2011
December
31, 2010 Analysis of Changes December
31, 2011

Debit Credit
Balance sheet%u2014debit bal. accounts
Cash $ $ $ $
Accounts receivable
Merchandise inventory
Prepaid expenses
Equipment

$ $

Balance sheet%u2014credit bal. accounts
Accum. depreciation%u2014Equip. $ $
Accounts payable
Short term notes payable
Long term notes payable
Common stock, $5 par value
Paid in capital in excess of
par value, common stock
Retained earnings

$ $

Statement of cash flows
Operating activities
Net income
Increase in accts. receivable
Increase in merch. inventory
Decrease in prepaid expenses
Decrease in accounts payable
Depreciation expense
Loss on sale of equipment
Investing activities
Receipt from sale of equipment
Payment to purchase equipment
Financing activities
Borrowed on short term note
Payment on long term note
Issued common stock for cash
Payments of cash dividends
Noncash investing and financing activities
Purchase of equip. financed
by long term note payable

$ $

chapter 7 please use my question and explain you got your answer please 449066

Aug 29, 2021 | Uncategorized

Klumper Corporation is a diversified manufacturer of industrial goods. The company’s activity based costing system contains the following six activity cost pools and activity rates:

Activity Cost Pool	Activity Rates
Supporting direct labor	$7	per direct labor hour
Machine processing	$3	per machine hour
Machine setups	$45	per setup
Production orders	$170	per order
Shipments	$115	per shipment
Product sustaining	$850	per product

Activity data have been supplied for the following two products:

	Total Expected Activity
	K425	M67
Number of units produced per year	1,400	180
Direct labor hours	1,125	50
Machine hours	2,600	40
Machine setups	13	1
Production orders	13	1
Shipments	26	1
Product sustaining	1	1

Required:

Determine the total overhead cost that would be assigned to each of the products listed in the activity based costing system. (Omit the “$” sign in your response.)

Activity Cost Pool	K425	M67
Supporting direct labor	$	$
Machine processing
Machine setups
Production orders
Shipments
Product sustaining
Total overhead cost	$	$

managerial accounting 449081

Aug 29, 2021 | Uncategorized

Li Company produces large quantities of a standardized product. The following information is available for its production activities for January.


Raw materials				Factory overhead incurred
Beginning inventory	$	19,000		Indirect materials used	$	80,000
Raw materials purchased (on credit)		305,000		Indirect labor used		50,000
Direct materials used		(169,500	)	Other overhead costs		152,100

Indirect materials used		(80,000	)	Total factory overhead incurred	$	282,100

Ending Inventory	$	74,500

				Factory overhead applied
Factory payroll				(140% of direct labor cost)
Direct labor used	$	201,500		Total factory overhead applied	$	282,100

Indirect labor used		50,000

Total payroll cost (paid in cash)	$	251,500

Additional information about units and costs of production activities follows.


Units			Costs
Beginning goods in process inventory	2,500		Beginning goods in process inventory
Started	40,000		Direct materials	$	3,500
Ending goods in process inventory	5,700		Direct labor		3,100
			Factory overhead		4,600

						$	11,200
Status of ending goods in process inventory			Direct materials added				169,500
Materials%u2014Percent complete	70	%	Direct labor added				201,500
Labor and overhead%u2014Percent complete	65	%	Overhead applied (140% of direct labor)				282,100

			Total costs			$	664,300

			Ending goods in process inventory			$	61,859

During January, 24,000 units of finished goods are sold for $110 cash each. Cost information regarding finished goods follows.


Beginning finished goods inventory	$	150,000
Cost transferred in		602,416
Cost of goods sold		(606,390	)

Ending finished goods inventory	$	146,026

7. value:

30.00 points

2.

Prepare a process cost summary report for this company, showing costs charged to production, units cost information, equivalent units of production, cost per EUP, and its cost assignment and reconciliation. (Round your cost per EUP answers to 2 decimal places and consider the same in the other calculations. Round other answers to the nearest dollar amount. Omit the “$” sign in your response.)

LI COMPANY
Process Cost Summary
For Month Ended January 31
Costs Charged to Production
Costs of beginning goods in process
	$



Total beginning goods in process		$
Costs incurred this period
	$



Total incurred this period

Total costs to account for		$

Unit cost information
Units to account for		Units accounted for



Total units to account for		Total units accounted for

Equivalent units of production	Direct Materials	Direct Labor	Factory Overhead
	EUP	EUP	EUP
	EUP	EUP	EUP

Equivalent units of production	EUP	EUP	EUP

Cost per EUP	Direct Materials		Direct Labor		Factory Overhead
	$		$		$


Total costs	$		$		$
		EUP		EUP		EUP

Cost per EUP	$	Per EUP	$	Per EUP	$	Per EUP

Cost assignment and reconciliation
Costs transferred out
	$



Total transferred out		$
Costs of ending goods in process
	$



Total ending goods in process

Total costs to account for		$

accounting 449086

Aug 29, 2021 | Uncategorized

Listed here are the total costs associated with the 2011 production of 1,000 drum sets manufactured by NeatBeat. The drum sets sell for $300 each. (Assume there is no ending inventory in the year 2011.)

	Costs
1.	Plastic for casing%u2014$12,000
2.	Wages of assembly workers%u2014$60,000.
3.	Property taxes on factory%u2014$6,000
4.	Accounting staff salaries %u2014 $45,000
5.	Drum stands (1,000 stands outsourced)%u2014$25,000
6.	Rent cost of equipment for sales staff%u2014$7,000
7.	Upper management salaries%u2014$100,000
8.	Annual flat fee for maintenance service%u2014$9,000
9.	Sales commissions%u2014$10 per unit
10.	Machinery depreciation%u2014$10,000

acc122 please help lundberg corp most recent balance sheet and income statement appe 449093

Aug 29, 2021 | Uncategorized

Lundberg Corporation’s most recent balance sheet and income statement appear below: Lundberg Corporation Statement of Financial Position December 31, 2012 and 2011 (in thousands of dollars) 2012 2011 Assets: Current assets: Cash $ 100 $ 110 Accounts receivable 210 220 Inventory 110 120 Prepaid expenses 10 10 Total current assets 430 460 Plant and equipment, net 900 880 Total Assets: $ 1,330 $ 1,340 Liabilities and Stockholders’ Equity: Current liabilities: Accounts payable $ 160 $ 170 Accrued liabilities 50 50 Notes payable, short term 100 90 Total current liabilities 310 310 Bonds payable 190 240 Total Liabilities: 500 550 Stockholders’ Equity: Preferred stock, $100 par value, 10% 200 200 Common stock, $1 par value 100 100 Additional paid in capital common stock 110 110 Retained earnings 420 380 Total Stockholders’ Equity: 830 790 Total Liabilities and Stockholders’ Equity: $ 1,330 $ 1,340 ? Lundberg Corporation Income Statement for the year ended December 31, 2012 (in thousands of dollars) Sales (all on account) $ 1,330 Cost of goods sold 850 Gross margin 480 Selling and administrative expense 292 Net operating income 188 Interest expense 31 Net income before taxes 157 Income taxes (30%) 47 Net income $ 110 Other Facts: ‘ Dividends on common stock during 2012 totaled $50 thousand. ‘ Dividends on preferred stock totaled $20 thousand. ‘ The market price of common stock at the end of 2012 was $9.36 per share. a. Compute the gross margin percentage for 2012. (Round your answer to 1 decimal place. Show your work.) Answer 480 Work 1330 850=480 480/850 .6 b. Compute the earnings per share (of common stock) for 2012. (Round your answer to 2 decimal places. Show your work.) Answer Work c. Compute the price earnings ratio for 2012. (Do not round intermediate calculations. Round your answer to 1 decimal place. Show your work.) Answer Work d. Compute the dividend payout ratio for 2012. (Do not round intermediate calculations. Round your answer to 1 decimal place. Show your work.) Answer Work e. Compute the dividend yield ratio for 2012. (Round your answer to 2 decimal places. Show your work.) Answer Work f. Compute the return on total assets for 2012. (Do not round intermediate calculations. Show your work.) Answer Work ? g. Compute the return on common stockholders’ equity for 2012. (Round your answer to 2 decimal places. Show your work.) Answer Work h. Compute the book value per share for 2012. (Round your answer to 2 decimal places. Show your work.) Answer Work i. Compute the working capital for 2012. (Input your answer in thousands of dollars. Show your work.) Answer Work j. Compute the current ratio for 2012. (Round your answer to 2 decimal places. Show your work.) Answer Work ? k. Compute the acid test ratio for 2012. (Show your work.) Answer Work l. Compute the accounts receivable turnover for 2012. (Round your answer to 2 decimal places. Show your work.) Answer Work m. Compute the average collection period for 2012. (Use 365 days in a year. Do not round intermediate calculations. Round your answer to the nearest whole number. Show your work.) Answer Work n. Compute the inventory turnover for 2012. (Show your work.) Answer Work ? o. Compute the average sale period for 2012. (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 1 decimal place. Show your work.) Answer Work p. Compute the times interest earned for 2012. (Round your answer to 2 decimal places. Show your work.) Answer Work q. Compute the debt to equity ratio for 2012. (Round your answer to 2 decimal places. Show your work.) Answer Work

acct 2102 process costing determine the equivalent units of production 448851

Aug 29, 2021 | Uncategorized

Fairfax Company uses weighted average process costing to account for its production costs. Direct labor is added evenly throughout the process. Direct materials are added at the beginning of the process. During September, the company transferred 735,000 units of product to finished goods. At the end of September, the goods in process inventory consists of 207,000 units that are 90% complete with respect to labor. Beginning inventory had $244,920 of direct materials and $69,098 of direct labor cost. The direct labor cost added in September is $1,312,852, and the direct materials cost added is $1,639,080.

(a)	Compute both direct labor cost and direct materials cost assigned to units completed and transferred out

(b)	Compute both direct labor cost and direct materials cost assigned to ending goods in process inventory

intermediate accounting 448852

Aug 29, 2021 | Uncategorized

On February 1, 2013, Arrow Construction Co. entered into a three year construction contract to build a bridge for a price of $8,000,000. During 2013, costs of $2,000,000 were incurred, with an estimated cost of $4,000,000 yet to be incurred. Billings of $2,500,000 were sent and cash collected was $2,250,000. In 2014, costs incurred were $2,500,000 with remaining costs estimated to be $3,600,000. 2014, billings were $2,750,000 and $2,475,000 cash was collected. The project was completed in 2015 after additional costs of $3,800,000 were incurred. The company’s fiscal year end is December 31. Arrow uses the percentage of completion method. Calculate the amount of gross profit or loss to be recognized in each of the three years. This is how the problem should be set up this is the table I have to fill out. (below) 2013 2014 2015 Contract price Actual Cost to date Estimated costs to complete Total estimated costs Estimated gross profit (loss) (actual in 2015) Gross profit (loss) to be recognized

chapter 7 use my question and explain how you got the answer please 448866

Aug 29, 2021 | Uncategorized

Fogerty Company makes two products, titanium Hubs and Sprockets. Data regarding the two products follow:

	Direct Labor Hours per Unit	Annual Production
Hubs	0.90	25,000 units
Sprockets	0.50	49,000 units

Additional information about the company follows:

a.	Hubs require $26 in direct materials per unit, and Sprockets require $17.
b.	The direct labor wage rate is $19 per hour.
c.	Hubs are more complex to manufacture than Sprockets and they require special processing.
d.	The ABC system has the following activity cost pools:

		Estimated Overhead		Activity
Activity Cost Pool	Activity Measure	Cost		Hubs	Sprockets	Total
Machine setups	Number of setups	$	17,100	95	76	171
Special processing	Machine hours	$	132,000	4,400	0	4,400
General factory	Direct labor hours	$	423,000	22,500	24,500	47,000

Requirement 1:

Compute the activity rate for each activity cost pool. (Omit the “$” sign in your response.)

Activity Cost Pool	Activity Rate
Machine setups	$	per setup
Special processing	$	per MH
General factory	$	per DLH

Requirement 2:

Determine the unit cost of each product according to the ABC system, including direct materials and direct labor. (Round your answers to 2 decimal places. Omit the “$” sign in your response.)

	Hubs	Sprockets
Direct materials	$	$
Direct labor
Overhead
Unit cost	$	$

accounting 448876

Aug 29, 2021 | Uncategorized

The following six column table for Bullseye Ranges includes the unadjusted trial balance as of

December 31, 2005.

Problem 4 6AA

Preparing adjusting, reversing, and

next period entries

P4 BULLSEYE RANGES

December 31, 2005

Unadjusted

Trial

Account Title Adjustments Adjusted Trail Balance

Dr. Cr. Dr. Cr. Dr Cr.

Cash . . . . . . . . . . . . . . . . . . . . . $ 13,000

Accounts receivable . . . . . . . . . . 0

Supplies . . . . . . . . . . . . . . . . . . 5,500

Equipment . . . . . . . . . . . . . . . . 130,000

Accumulated depreciation%u2014

Equipment . . . . . . . . . . . . . . . $ 25,000

Interest payable . . . . . . . . . . . . . 0

Salaries payable . . . . . . . . . . . . . 0

Unearned member fees . . . . . . . 14,000

Notes payable . . . . . . . . . . . . . . 50,000

T. Allen, Capital . . . . . . . . . . . . . 58,250

T. Allen, Withdrawals . . . . . . . . . 20,000

Member fees earned . . . . . . . . . 53,000

Depreciation expense%u2014

Equipment . . . . . . . . . . . . . . . 0

Salaries expense . . . . . . . . . . . . 28,000

Interest expense . . . . . . . . . . . . 3,750

Supplies expense . . . . . . . . . . . . 0

Totals . . . . . . . . . . . . . . . . . . . . $200,250 $200,250

Required

1. Complete the six column table by entering adjustments that reflect the following information:

a. As of December 31, 2005, employees had earned $900 of unpaid and unrecorded salaries. The

next payday is January 4, at which time $1,600 of salaries will be paid.

b. The cost of supplies still available at December 31, 2005, is $2,700.

c. The notes payable requires an interest payment to be made every three months. The amount

of unrecorded accrued interest at December 31, 2005, is $1,250. The next interest payment,

at an amount of $1,500, is due on January 15, 2006.

d. Analysis of the unearned member fees account shows $5,600 remaining unearned at December

31, 2005.

e. In addition to the member fees included in the revenue account balance, the company has earned

another $9,100 in unrecorded fees that will be collected on January 31, 2006. The company

is also expected to collect $8,000 on that same day for new fees earned in January 2006.

f. Depreciation expense for the year is $12,500.

2. Prepare journal entries for the adjustments entered in the six column table for part 1.

3. Prepare journal entries to reverse the effects of the adjusting entries that involve accruals.

4. Prepare journal entries to record the cash payments and cash collections described for January.

accounting 448879

Aug 29, 2021 | Uncategorized

The following is a comparative income statements of Geraldo Corporation:

GERALDO CORPORATION
Comparative Income Statements
For Years Ended December 31, 2011 and 2010
2011 2010
Sales $ 1,053,000 $ 810,000
Cost of goods sold 526,500 405,000

Gross profit 526,500 405,000
Operating expenses 243,000 162,000

Net income $ 283,500 $ 243,000

Express the above comparative income statements in common size percents. (Round your answers to 1 decimal place. Omit the “%” sign in your response.)

2011 2010
Sales 100.0 % 100.0 %
Cost of goods sold

Gross profit
Operating expenses

Net income % %

The company’s situation in the most recent year has:

Improved
Worsened
Remained unchanged

the following data is given for the stringer company 448883

Aug 29, 2021 | Uncategorized

The following data is given for the stringer Company:

Budgeted production	1,035 units
Actual production	916 units
Materials:
Standard price per ounce	$1.83
Standard ounces per completed unit	10
Actual ounces purchased and used in production	8,885
Actual price paid for materials	$18,214
Labor:
Standard hourly labor rate	$15.00 per hour
Standard hours allowed per completed unit	4.0
Actual labor hours worked	4,717.4
Actual total labor costs	$71,940
Overhead:
Actual and budgeted fixed overhead	$1,107,696
Standard variable overhead rate	$26.00 per standard labor hour
Actual variable overhead costs	$132,087
Overhead is applied on standard labor hours.

Determine the direct material quantity variance.

Select the correct answer.

a. 1,954 F

b. 1,954 U

c. 503 F

d. 503 U

taxation 448889

Aug 29, 2021 | Uncategorized

In each of the following independent cases, indicate the amount (1) deductible for AGI, (2) deductible from AGI, and (3) neither deductible for nor deductible from AGI before considering income limitations or the standard deduction. (Leave no cells blank be certain to enter “0” wherever required. Omit the “$” sign in your response.) a. Ted paid $30 rent on a safety deposit box at the bank. In this box he kept the few shares of stock that he owned. Deductible for AGI $ Deductible from AGI $ Not deductible $ b. Tyler paid $154 for minor repairs to the fence at a rental house he owned. Deductible for AGI $ Deductible from AGI $ Not deductible $ c. Timmy paid $775 for health insurance premiums this year. Timmy is employed full time and his employer paid the remaining premiums as a qualified fringe benefit. Deductible for AGI $ Deductible from AGI $ Not deductible $ d. Tess paid $1,880 of state income taxes on her consulting income. Deductible for AGI $ Deductible from AGI $ Not deductible $

rush help 448899

Aug 29, 2021 | Uncategorized

You have the following information about Constance Security, a lock manufacturer:

Equity Shares Outstanding	10 million
Stock price per share	$20.00
Yield to maturity on debt	8.00%
Book value of interest bearing debt	$135 million
Coupon interest rate on debt	6.00%
Market value of debt	$130 million
Book value of equity	$80 million
Cost of equity capital	12%
Tax rate	40%

Constance is contemplating an average risk investment costing $15 million that promises an annual after tax cash flow of $2 million in perpetuity. a. What is the internal rate of return on the investment? Hint: Use the perpetuity equation from Chapter 7’s DCF discussion. b. What is Constance%u2019s weighted average cost of capital? c. If undertaken, would you expect this investment to benefit shareholders? Why or Why not?

decision on accepting additional business 448924

Aug 29, 2021 | Uncategorized

Glide Ride Tire and Rubber Company has capacity to produce 170,000 tires. Glide Ride presently produces and sells 130,000 tires for the North American market at a price of $90 per tire. Glide Ride is evaluating a special order from a European automobile company, Euro Motors. Euro is offering to buy 20,000 tires for $72 per tire. Glide Ride’s accounting system indicates that the total cost per tire is as follows:

Direct Materials…………………………………………………….$ 34

Direct Labor………………………………………………………… 12

Factory Overhead (60% Variable)………………………….. 20

Selling and Administrative Expenses (35% Variable)… 18

Total………………………………………………………………….. $ 84

Glide Ride pays a selling commission equal to 5% of the selling price on North American orders, which is included in the variable portion of the selling and administrative expenses. However, this special order would not have a sales commission. If the order was accepted, the tires would be shipped overseas for an additional shipping cost of $5.00 per tire. In addition, Euro has made the order conditional on receiving European safety certification. Glide Ride estimates that this certification would cost $95,000.

a. Prepare a differential analysis dated May 4, 2012, on whether to reject (Alternative 1) or accept (Alternative 2) the special order from Euro Motors. If an amount is zero, enter zero “0”. If required, round interim calculations to two decimal places.

Determine whether to reject (Alternative 1) or accept (Alternative 2) the special order from Euro Motors.
Select Accept the special order Reject the special order Correct 1 of Item 2

b. What is the minimum price per unit that would be financially acceptable to Glide Ride? Round your answer to two decimal places.
$ per unit

sales and production budgets 448933

Aug 29, 2021 | Uncategorized

Harmony Audio Company manufactures two models of speakers, DL and XL. Based on the following production and sales data for September 2012, prepare (a) a sales budget and (b) a production budget. Enter all amounts as positive numbers.

	DL	XL
Estimated inventory (units), September 1	259	83
Desired inventory (units), September 30	298	72
Expected sales volume (units):
East Region	3,250	3,650
West Region	5,250	5,950
Unit sales price	$100	$190

a. Prepare a sales budget.

accounting bonds 448938

Aug 29, 2021 | Uncategorized

Heathrow issues $2,200,000 of 7%, 15 year bonds dated January 1, 2011, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $2,692,790.

Required:
1.	Prepare the January 1, 2011, journal entry to record the bonds%u2019 issuance. (Omit the “$” sign in your response.)

Date	General Journal	Debit	Credit
Jan. 1	(Click to select) Discount on bonds payable Bond interest expense Accounts receivable Bond interest payable Accounts payable Premium on bonds payable Bonds payable Cash
	(Click to select) Accounts receivable Premium on bonds payable Bond interest payable Accounts payable Bonds payable Cash Bond interest expense Discount on bonds payable
	(Click to select) Premium on bonds payable Cash Accounts payable Bond interest expense Bond interest payable Discount on bonds payable Bonds payable Accounts receivable

2(a)	For each semiannual period, compute the cash payment. (Omit the “$” sign in your response.)

Cash payment

$

2(b)	For each semiannual period, compute the the straight line premium amortization. (Round your answer to the nearest dollar amount. Omit the “$” sign in your response.)

Amount of premium amortized

$

2(c)	For each semiannual period, compute the the bond interest expense. (Omit the “$” sign in your response.)

Bond interest expense

$

3.	Determine the total bond interest expense to be recognized over the bonds’ life. (Omit the “$” sign in your response.)

Total bond interest expense

$

4.	Prepare the first two years of an amortization table using the straight line method. (Omit the “$” sign in your response.)

Semiannual Period End	Unamortized Premium	Carrying Value
1/01/2011	$	$
6/30/2011
12/31/2011
6/30/2012
12/31/2012

5.	Prepare the journal entries to record the first two interest payments. (Omit the “$” sign in your response.)

Date	General Journal	Debit	Credit
June 30	(Click to select) Premium on bonds payable Bond interest payable Discount on bonds payable Bonds payable Bond interest expense Cash Accounts receivable Accounts payable
	(Click to select) Accounts payable Premium on bonds payable Cash Discount on bonds payable Bonds payable Bond interest expense Accounts receivable Bond interest payable
	(Click to select) Accounts payable Cash Bond interest expense Accounts receivable Premium on bonds payable Bonds payable Discount on bonds payable Bond interest payable

Dec. 31	(Click to select) Bond interest expense Accounts receivable Discount on bonds payable Premium on bonds payable Cash Bond interest payable Accounts payable Bonds payable
	(Click to select) Premium on bonds payable Accounts receivable Bond interest payable Accounts payable Discount on bonds payable Bond interest expense Bonds payable Cash
	(Click to select) Accounts receivable Accounts payable Discount on bonds payable Cash Bond interest expense Bond interest payable Premium on bonds payable Bonds payable

accounting variance 448942

Aug 29, 2021 | Uncategorized

Helix Company produces several products in its factory, including a karate robe. The company uses a standard cost system to assist in the control of costs. According to the standards that have been set for the robes, the factory should work 780 direct labor hours each month and produce 3,900 robes. The standard costs associated with this level of production are as follows:

	Total		Per Unit of Product
Direct materials	$	70,980	$ 18.20
Direct labor	$	12,870	3.30
Variable manufacturing overhead (based on direct labor hours)	$	2,340	0.60

			$ 22.10

During April, the factory worked only 745 direct labor hours and produced 4,000 robes. The following actual costs were recorded during the month:

	Total		Per Unit of Product
Direct materials (12,000 yards)	$	72,000	$ 18.00
Direct labor	$	14,000	3.50
Variable manufacturing overhead	$	8,000	2.00

			$ 23.50

At standard, each robe should require 2.8 yards of material. All of the materials purchased during the month were used in production.

Required:

1.

Compute the materials price and quantity variances for April: (Input all amounts as positive values. Leave no cells blank be certain to enter “0” wherever required. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.)


Materials price variance	$	(Click to select) U None F
Materials quantity variance	$	(Click to select) U None F

2.

Compute the labor rate and efficiency variances for April: (Input all amounts as positive values. Leave no cells blank be certain to enter “0” wherever required. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Do not round your intermediate calculations. Round your final answers to the nearest dollar.)


Labor rate variance	$	(Click to select) F U None
Labor efficiency variance	$	(Click to select) F None U

3.

Compute the variable manufacturing overhead rate and efficiency variances for April: (Input all amounts as positive values. Leave no cells blank be certain to enter “0” wherever required. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.)


Variable overhead rate variance	$	(Click to select) U F None
Variable overhead efficiency variance	$	(Click to select) F U None

hillyard company an office supplies specialty store prepares its master budget on a 448961

Aug 29, 2021 | Uncategorized

Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparing the master budget for the first quarter:

a.	As of December 31 (the end of the prior quarter), the company’s general ledger showed the following account balances:

	Debits	Credits
Cash	$43,500
Accounts receivable	203,250
Inventory	49,080
Buildings and equipment (net)	411,570
Accounts payable		$93,900
Capital stock		500,000
Retained earnings		113,500

	$707,400	$707,400

b.	Actual sales for December and budgeted sales for the next four months are as follows:


December (actual)	$271,000
January	$409,000
February	$618,000
March	$318,000
April	$209,000

c.	Sales are 25% for cash and 75% on credit. All payments on credit sales are collected in the month following sale. The accounts receivable at December 31 are a result of December credit sales.
d.	The company’s gross margin is 40% of sales. (In other words, cost of goods sold is 60% of sales.)
e.	Monthly expenses are budgeted as follows: salaries and wages, $27,900 per month: advertising, $70,900 per month; shipping, 4% of sales; other expenses, 2% of sales. Depreciation, including depreciation on new assets acquired during the quarter, will be $46,500 for the quarter.
f.	Each month’s ending inventory should equal 20% of the following month’s cost of goods sold.
g.	One half of a month’s inventory purchases is paid for in the month of purchase; the other half is paid in the following month.
h.	During February, the company will purchase a new copy machine for $2,600 cash. During March, other equipment will be purchased for cash at a cost of $80,000.
i.	During January, the company will declare and pay $45,900 in cash dividends.
j.	Management wants to maintain a minimum cash balance of $30,000. The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each month. The interest rate on these loans is 2% per month and for simplicity, we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the quarter.

Requirement 4:

Cash budget. (Leave no cells blank be certain to enter “0” wherever required. Show deficiencies, repayments, interest and total financing preceded by a minus sign when appropriate. Enter all other amounts as positive values. Omit the “$” sign in your respone.)

	January	February	March	Quarter
Cash balance, beginning	$43,500	$	$	$
Add cash collections	305,500

Total cash available	349,000

Less cash disbursements:
Inventory purchases	229,140
Selling and administrative expenses	123,340
Equipment purchases
Cash dividends	45,900

Total cash disbursements	398,380

Excess (deficiency) of cash	(49,380)

Financing:
Borrowings
Repayments
Interest

Total financing

Cash balance, ending	$	$	$	$

I’ve figured out all the rest, I just need help with this part!

accounting for business operations 448978

Aug 29, 2021 | Uncategorized

I am having some trouble with some accounting questions again. Any help and I would be so grateful! Thank you!

Exercise 7.9 A and B only (page 206): For each of the following situations, prepare the adjusting entry for the month ended October 31 and indicate the effect each adjustment would have on net income:

A. Wingenbach Plumbing had a $35,000 contract with a construction company to perform plumbing services for a home under construction. Payment was to be received at the end of the job. As of October 31, $8,000 worth of services had been performed.

B. Hutchison State Bank made a $10,000 loan to a customer on October 1. The terms called for principal and interest of 8 percent to be paid at the end of one year. Hutchison State Bank prepares monthly financial statements.

Exercise 7.10 A and B only (page 206): For each of the following situations, prepare the adjusting entry for the month ended February 28 and indicate the effect each adjustment would have on net income:

A. On February 1, Doan Company received a $6,000 retainer from a client. By the end of February, Doan had earned $4,500 of the retainer.

B. During January, $24,000 in magazine subscriptions was received by MG Corp. The subscriptions were for 12 monthly issues of Summer sport, beginning with the month of February. MG Corp. prepares monthly financial statements.

Excerise 7.11 A and B only (page 206): For each of the following situations, prepare the adjusting entry for the month ended May 31 and indicate the effect each adjustment would have on net income:

A. The May telephone bill for Scheele Company arrived in the accounting department on June 8. The invoice totaled $210.

B. Bailey, Inc. had an arrangement with a local newspaper to run a full page advertisement every Sunday. The cost of each ad was $350. The newspaper sends Bailey a bill on the 15^th of the next month. There were four Sundays in the month of May.

Exercise 7.12 B and C only (page 206): For each of the following situations, prepare the adjusting entry for the month ended July 31 and indicate the effect each adjustment would have on net income:

B. On July 1, Rottman Company had a $390 balance in its supplies account. During July, $1,450 of additional supplies were purchased. An inventory at July 31 showed $275 of supplies still on the shelves.

C. Last year, Apple Enterprises purchased some equipment at a total cost of $75,000. The estimated useful life of the equipment is 5 years. Apple prepares semiannual financial statements.

Exercise 7.18 (pages 207 208): The adjusted trial balance of Murphy%u2019s Taxi Service, Inc., follows. Determine the net income or loss for the month of May and the balance in the Retained Earnings account that would appear on the balance sheet.

Murphy’s Taxi Service, Inc.
Adjusted Trial Balance
May 31, 2010

	Debits	Credits
Cash	$ 1,920
Prepaid Insurance	$ 690
Automobiles	$29,500
A/D %u2013 Automobiles		$12,800
Capital Stock		$15,000
Retained Earnings		$ 3,720
Passenger fee revenue		$ 4,250
Salary expense	$ 2,400
Fuel expense	$ 485
Depreciation expense	$ 615
Repairs and maintenance expense	$ 160
Totals	$35,770	$35,770

Problem 7.1 1 and 7 only (pages 208 209): Biando Corporation began operations on May 1, 2010 and completed the following transactions during its first month of operations.

A. Sold capital stock for $30,000.
B. Purchased land and building valued at $35,000 and $165,000, respectively, by paying $10,000 cash and signing a 20 year mortgage for the balance.
C. Purchased office equipment on account, $7,500.
D. Billed a customer for services performed, $5,000.
E. Received an $800 deposit from a customer for services to be performed next month.
F. Made a partial payment on account for the office equipment purchased in transaction (C), $1,500.
G. Performed a service and immediately collected $2,000.
H. Received and immediately paid the telephone bill for the month, $380.
I. Paid a dividend to owners, $3,000.
J. Received, but did not pay, the monthly utility bill, $450.

1. Prepare the general journal entries to record each of these events.

7. Prepare the closing entries.

billings company is a decentralized wholesaler with five autonomous divisions 448981

Aug 29, 2021 | Uncategorized

“I know headquarters wants us to add that new product line,” said Dell Havasi, manager of Billings Company’s Office Products Division. “But I want to see the numbers before I make any move. Our division’s return on investment (ROI) has led the company for three years, and I don’t want any letdown.”

Billings Company is a decentralized wholesaler with five autonomous divisions. The divisions are evaluated on the basis of ROI, with year end bonuses given to the divisional managers who have the highest ROIs. Operating results for the company’s Office Products Division for the most recent year are given below:


Sales	$20,280,000
Variable expenses	12,865,340
Contribution margin	7,414,660
Fixed expenses	5,690,860
Net operating income	$1,723,800
Divisional operating assets	$5,200,000

The company had an overall return on investment (ROI) of 15% last year (considering all divisions). The Office Products Division has an opportunity to add a new product line that would require an additional investment in operating assets of $3,390,000. The cost and revenue characteristics of the new product line per year would be:


Sales	$10,170,000
Variable expenses	60% of sales
Fixed expenses	$3,274,740

Requirement 1:

Compute the Office Products Division’s ROI for the most recent year; also compute the ROI as it would appear if the new product line is added.(Round interim calculations and final answers to 2 decimal places. Omit the “%” sign in your response.)

	ROI
Present	%
New Line	%
Total for company	%

Requirement 4:

Suppose that the company’s minimum required rate of return on operating assets is 15% and that performance is evaluated using residual income.

(a)

Compute the Office Products Division’s residual income for the most recent year; also compute the residual income as it would appear if the new product line is added. (Omit the “$” sign in your response.)

	Residual income
Present	$
New Line	$
Total for company	$

the company s variable manufacturing overhead rate is 1 5 per direct labor hour and 448800

Aug 29, 2021 | Uncategorized

The direct labor budget of Yuvwell Corporation for the upcoming fiscal year contains the following details concerning budgeted direct labor hours:

	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter
Budgeted direct labor hours	4,950	4,600	5,250	5,700

The company’s variable manufacturing overhead rate is $1.5 per direct labor hour and the company’s fixed manufacturing overhead is $39,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $14,000 per quarter.

rev: 02 10 2011

7. value:

1.50 points

Requirement 1:

Compute the company’s manufacturing overhead budget for the upcoming fiscal year. (Omit the “$” sign in your response.)

	Cash disbursements for manufacturing overhead
1st Quarter	$
2nd Quarter	$
3rd Quarter	$
4th Quarter	$
Year	$

rev: 02 10 2011 check my workeBook Linkreferences

8. value:

1.50 points

Requirement 2:

Compute the company’s manufacturing overhead rate (including both variable and fixed manufacturing overhead) for the upcoming fiscal year. (Round your answer to 2 decimal places. Omit the “$” sign in your response.)

Manufacturing overhead rate for the year

$

accounting managerial 448805

Aug 29, 2021 | Uncategorized

Discretionary fixed costs:

Answer

A. vary directly and proportionately with the level of activity.

B. have a long term planning horizon, generally encompassing many years.

C. are made up of plant, equipment, and basic organizational costs.

D. None of these.

Question 18, 19 and 20 use the following information:

The following is Addison Corporation’s contribution format income statement for last month:

Sales		$ 1,000,000
Variable expenses		700,000
Contribution margin		300,000
Fixed expenses		180,000
Net operating income		$ 120,000

The company has no beginning or ending inventories. A total of 20,000 units were produced and sold last month.

18. What is the company’s contribution margin ratio?

Answer

A. 250%

B. 150%

C. 70%

D. 30%

19. What is the company’s break even in units?

Answer

A. 20,000 units

B. 0 units

C. 18,000 units

D. 12,000 units

20. How many units would the company have to sell to attain the target profit of $150,000?

Answer

		A. 22,000
		B. 37,500
		C. 25,000
		D. 26,667

excel chapter 6 i cannot upload the excel file it wont let me so if you are going to 448821

Aug 29, 2021 | Uncategorized

Download the Applying Excel form and enter formulas in all cells that contain question marks.

For example, in cell B26 enter the formula “= B17”.

After entering formulas in all of the cells that contained question marks, verify that the dollar amounts match the numbers in Review Problem 1.

Check your worksheet by changing the units sold in the Data to 6,000 for Year 2. The cost of goods sold under absorption costing for Year 2 should now be $240,000. If it isn%u2019t, check cell C41. The formula in this cell should be =IF(C26

Save your completed Applying Excel form to your computer and then upload it here by clicking %u201CBrowse.%u201D Next, click %u201CSave.%u201D You will use this worksheet to answer the questions in Part 2.

accouting problem 448833

Aug 29, 2021 | Uncategorized

Entin Corporation reported the following data for the month of January:

	Beginning		Ending
Inventories:
Raw materials	$	43,000	$	49,000
Work in process	$	22,000	$	28,000
Finished goods	$	56,000	$	58,000

Additional information:
Raw materials purchases	$	76,000
Direct labor cost	$	99,000
Manufacturing overhead cost incurred	$	75,000
Indirect materials included in manufacturing overhead cost incurred	$	4,000
Manufacturing overhead cost applied to Work in Process	$	72,000

The adjusted cost of goods sold that appears on the income statement for January is:

	$233,000
	$229,000
	$232,000
	$231,000

accounting for business operations 448840

Aug 29, 2021 | Uncategorized

Exercise 7.18 (pages 207 208): The adjusted trial balance of Murphy%u2019s Taxi Service, Inc., follows. Determine the net income or loss for the month of May and the balance in the Retained Earnings account that would appear on the balance sheet.

Murphy’s Taxi Service, Inc.
Adjusted Trial Balance
May 31, 2010

	Debits	Credits
Cash	$ 1,920
Prepaid Insurance	$ 690
Automobiles	$29,500
A/D %u2013 Automobiles		$12,800
Capital Stock		$15,000
Retained Earnings		$ 3,720
Passenger fee revenue		$ 4,250
Salary expense	$ 2,400
Fuel expense	$ 485
Depreciation expense	$ 615
Repairs and maintenance expense	$ 160
Totals	$35,770	$35,770

extraordinary items question 448674

Aug 29, 2021 | Uncategorized

Bradenton Company Reports the following for 2012:

1. Prepare a partial income statement for Bradenton Company beginning with income from continuing operations before income tax.

Bradenton, Inc.

Partial Income Statement

For the Year Ended December 31, 2012

Income from continuing operations before income tax

$

Income tax expense

Income from continuing operations

$

Loss from discontinued operations (net of tax)

Income before extraordinary item (net of tax)

$

Extraordinary item:

Loss due to hurricane

Net income

$

2. Calculate the earnings per common share for Bradenton, including per share amount for unusual items. Round your answer to two decimal places.

$

fin15 448677

Aug 29, 2021 | Uncategorized

The Branding Iron Company sells its irons for $60 apiece wholesale. Production cost is $50 per iron. There is a 20% chance that a prospective customer will go bankrupt within the next half year. The customer orders 1,000 irons and asks for 6 months%u2019 credit. Assume an 10% per year discount rate, no chance of a repeat order, and that the customer will pay either in full or not at all.

a.	Calculate the expected profit for the order. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.)

Expected profit

$

b.

Should you accept the order?

	Yes
	No

critical thinking cases 448685

Aug 29, 2021 | Uncategorized

Cabinets, Inc., is a large manufacturer of modular kitchen cabinets, sold primarily to builders and developers. The company uses a standard cost system. Standard production costs have been developed for each type of cabinet; these costs, and any cost variances, are charged to the production department. A budget also has been developed for the sales department. The sales department is credited with the gross profit on sales (measured at standard costs) and is charged with selling expenses and any variations between budgeted and actual selling expenses……. In early April the manager of the sales department asked the production department to fill a rush order of kitchen cabinets for a tract of 120 homes. The sales manager stated that the entire order must be completed by May 31. The manager of the production department argued that an order of this size would take twelve weeks to produce. The sales manager answered: “The customer needs it on May 31, or we don’t get the business. Do you want to be responsible for our losing a customer who makes orders of this size?”….. Of course, the production manager did not want to take that responsibility. Therefore, he gave in and processed the rush order by having production personnel work overtime through April and May. As a result of the overtime, the performance reports for the production department in those months showed large, unfavorable labor rate variances. The production manager, who in the past had prided himself on coming in under budget, now has very ill feelings toward the sales manager. He also has stated that the production department will never again accept a rush order….. A. Identify any problem that you see in the company’s standard cost system or in the manner in which cost variances are assigned to the responsible managers…… B. Make recommendations for changing the cost accounting system to reduce or eliminate any problems that you have identified.

please help i guarantee the points 448686

Aug 29, 2021 | Uncategorized

Calculate the break even point in (1) dollars and (2) number of fares.

1. Break even point……$

2. Break even point……fares

Without calculations, determine the contribution margin at the break even point

Break even point………$

If fares were decreased by 10% an additional 100 fares could be generated. However, total variable costs would increase by 20%.

(1) How much would net income be impacted by the change?

Net Income….decreases or increases (choose one) to $………

(2) Should the fare decrease be adopted? Yes or No (choose one)

variable costing 448689

Aug 29, 2021 | Uncategorized

Caltec, Inc., produces and sells recordable CD and DVD packs. Revenue and cost information relating to the products follow:

Use the sub navigation below to navigate within this series of questions.

	Product
	CD		DVD
Selling price per pack	$	12.00	$	33.00
Variable expenses per pack	$	2.40	$	12.00
Traceable fixed expenses per year	$	136,000	$	50,000

Common fixed expenses in the company total $115,000 annually. Last year the company produced and sold 37,500 CD packs and 21,500 DVD packs.

Required:

Prepare a contribution format income statement for the year segmented by product lines. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the “$” sign in your response.)

	Product Line
	Total	CD	DVD
(Click to select) Net operating income (loss) Variable expenses Product line segment margin Common fixed expenses not traceable to products Sales Traceable fixed expenses Contribution margin	$	$	$
(Click to select) Sales Variable expenses Traceable fixed expenses Common fixed expenses not traceable to products Net operating income (loss) Contribution margin Product line segment margin

(Click to select) Common fixed expenses not traceable to products Variable expenses Traceable fixed expenses Net operating income (loss) Sales Product line segment margin Contribution margin
(Click to select) Traceable fixed expenses Variable expenses Sales Common fixed expenses not traceable to products Net operating income (loss) Contribution margin Product line segment margin

(Click to select) Net operating income (loss) Sales Contribution margin Variable expenses Common fixed expenses not traceable to products Product line segment margin Traceable fixed expenses		$	$

(Click to select) Sales Common fixed expenses not traceable to products Variable expenses Contribution margin Traceable fixed expenses Net operating income (loss) Product line segment margin

(Click to select) Sales Product line segment margin Traceable fixed expenses Variable expenses Net operating income (loss) Contribution margin Common fixed expenses not traceable to products	$

accounting 448690

Aug 29, 2021 | Uncategorized

Carlson Auto Dealers Inc. sells a handmade automobile as its only product. Each automobile is identical; however, they can be distinguished by their unique ID number. At the beginning of 2013, Carlson had three cars in inventory, as follows:

Car ID	Cost
203	$	96,000
207		96,000
210		99,000

During 2013, each of the three autos sold for $126,000. Additional purchases (listed in chronological order) and sales for the year were as follows:

Car ID	Cost		Selling Price
211	$	96,000	$	126,000
212		96,000		129,000
213		97,500		not sold
214		99,000		132,000
215		102,000		136,500
216		100,500		not sold
217		105,000		141,000
218		102,300		142,500
219		108,000		not sold

Required:
1.	Calculate 2013 ending inventory and cost of goods sold assuming the company uses the specific identification inventory method.

2.	Calculate ending inventory and cost of goods sold assuming FIFO and a periodic inventory system.

3.	Calculate ending inventory and cost of goods sold assuming LIFO and a periodic inventory system.

4.	Calculate ending inventory and cost of goods sold assuming the average cost method and a periodic inventory system.

need help harvard business school case cintas y lazos inc 448699

Aug 29, 2021 | Uncategorized

The case is a little bit long, and there are 4 questions at the end. Really need professionals help! Thanks!

factory overhead cost variances 448710

Aug 29, 2021 | Uncategorized

Casual Comfort Textiles Corporation began January with a budget for 30,000 hours of production in the Weaving Department. The department has a full capacity of 40,000 hours under normal business conditions. The budgeted overhead at the planned volumes at the beginning of January was as follows: Variable overhead $124,500 Fixed Overhead 62,000 Total $186,500 The actual factory overhead was $178,900 for January. The actual fixed factory overhead was as budgeted. During January, the Weaving Department had standard hours at actual production volume of 31,000 hours. If required, round your answers to two decimal places. Use the minus sign to enter favorable variances as negative numbers. a. Determine the variable factory overhead Controllable Variance. $ ??? it is Favorable b. Determine the fixed factory overhead volume variance. $ ??? it is unfavorable

essentials of management andrew j dubrin 9th edition 448712

Aug 29, 2021 | Uncategorized

Chapter 14: Information Technology and e Commerce .

Learning objectives are listed at the beginning of each Chapter.

1. A growing number of managers believe that in order to work on difficult business problems, they must refrain from looking at e mail for certain blocks of time during the day. In what ways might checking e mail frequently interfere with problem solving?

Skill Building Exercise 14 A: Costs Reduction through Information Technology. Page 535. Do exercise individually.(Use a work experience to support your answer). Attached is the exercise .

Chapter 3: Ethics and Corporate Social Responsibility.

3. What is your reaction to the following statement made by many business graduates? “It may be nice to study ethics, but in the real world the only thing that counts is money.”

4. Management in Action Wal Mart Managers Take the High Road and the Low Road. Read the case and answer the three questions at the end. Page 94. of the book mentioned at the subject line.

taxation 448714

Aug 29, 2021 | Uncategorized

Charles has AGI of $50,000 and has made the following payments related to (1) land he inherited from his deceased aunt and (2) a personal vacation taken last year. State inheritance tax on the land $ 1,220 County real estate tax on the land 1,690 School district tax on the land 1,145 City special assessment on the land (replacing curbs and gutters) 830 State tax on airline tickets (paid on vacation) 139 Local hotel tax (paid during vacation) 207 Calculate the amount of taxes Charles may include in his itemized deductions for the year under the following circumstances: (Leave no cells blank be certain to enter “0” wherever required. Omit the “$” sign in your response.) a. Suppose that Charles holds the land for appreciation. Deductible taxes $ b. Suppose that Charles holds the land for rent. Deductible taxes $ c. Suppose that the vacation was actually a business trip. Deductible taxes $

accounting 448715

Aug 29, 2021 | Uncategorized

Charlotte (age 40) is a surviving spouse and provides all of the support of her four minor children who live with her. She also maintains the household in which her parents live and furnished 60% of their support. Besides interest on City of Miami bonds in the amount of $5,500, Charlotte%u2019s father received $2,400 from a part time job. Charlotte has a salary of $80,000, a short term capital loss of $2,000, a cash prize of $4,000 from a church raffle, and itemized deductions of $10,500. Using the Tax Rate Schedules, compute the 2013 tax liability for Charlotte.

Each year, Tom and Cindy Bates normally have itemized deductions of $10,000, including a $4,000 pledge payment to their church. Upon the advice of a friend, they do the following: in early January 2013, they pay their pledge for 2012; during 2013, they pay the pledge for 2013; and in late December 2013, they prepay their pledge for 2014. a. Explain what the Bates are trying to accomplish. b. What will be the tax saving if their marginal tax bracket is 25% for all three years? (Assume that the standard deduction amounts for 2013 and 2014 are the same.) c. Write a letter to Tom and Cindy Bates (8212 Bridle Court, Reston, VA 20194) sum marizing your analysi

lowest acceptable transfer price 448725

Aug 29, 2021 | Uncategorized

The Commando Motorcycle Company has decided to become decentralized and split its operations into two divisions, Motor and Assembly. Both divisions will be treated as investment centers. The Motor Division is currently operating at its capacity of 30,000 motors per year. Motor’s costs at this level of production are as follows:

	Cost per motor
Direct materials	$ 30
Direct labor	50
Variable manufacturing overhead	20
Fixed manufacturing overhead	25
Variable selling and administrative	5
Fixed selling and administrative	10
Total cost per motor	$140

Motor sells 10,000 of its motors to a snowmobile manufacturer and transfers the remaining 20,000 motors to the Assembly Division. The two divisions are currently in a debate over an appropriate transfer price to charge for the 20,000 motors. Motor currently charges the snowmobile manufacturer $200 per motor. The final selling price of the motorcycles that Commando produces is $7,200 per cycle. This selling price will not change regardless of the transfer price charged between the two divisions. Motor has no market for the 20,000 motors if they are not transferred to Assembly. Variable selling and administrative costs are incurred on both internal and external sales.

According to the formula in the text, what is the lowest acceptable transfer price from the viewpoint of the selling division?

A) $105 per motor B) $140 per motor C) $125 per motor D) $35 per motor

activity rate 448747

Aug 29, 2021 | Uncategorized

A company uses activity based costing to determine the costs of its three products: A, B and C. The budgeted cost and activity for each of the company’s three activity cost pools are shown below.

			Budgeted Activity
Activity Cost Pool	Budgeted Cost	Product A	Product B	Product C
Activity 1	$104,720	6,800	9,800	20,800
Activity 2	$74,520	7,800	15,800	8,800
Activity 3	$126,000	3,300	1,800	2,400

Which of the following statements is true regarding this company’s activity rates?

	The activity rate under the activity based costing system for Activity 2 is $2.80.
	The activity rate under the activity based costing system for Activity 2 is $16.80.
	The activity rate under the activity based costing system for Activity 2 is $2.30.
	The activity rate under the activity based costing system for Activity 2 is $21.90.
	The activity rate under the activity based costing system for Activity 2 is $3.95.

managerial accounting 448758

Aug 29, 2021 | Uncategorized

The contribution format income statement for Westex, Inc., for its most recent period is given below:

	Total		Unit
Sales	$	994,000	$	49.70
Variable expenses		596,400		29.82

Contribution margin		397,600		19.88
Fixed expenses		319,600		15.98

Net operating income		78,000		3.90
Income taxes @ 40%		31,200		1.56

Net income	$	46,800	$	2.34

The company had average operating assets of $508,000 during the period.

Required:
1.	Compute the company%u2019s return on investment (ROI) for the period using the ROI formula stated in terms of margin and turnover. (Round your intermediate calculations and final answers to 2 decimal places.)

ROI

%

For each of the following questions, indicate whether the margin and turnover will increase, decrease, or remain unchanged as a result of the events described, and then compute the new ROI figure. Consider each question separately, starting in each case from the original ROI computed in (1) above.

2.	The company achieves a cost savings of $15,000 per period by using less costly materials. (Round your intermediate calculations and final answers to 2 decimal places.)

		Effect
Margin	%	(Click to select) Increase Unchanged Decrease
Turnover		(Click to select) Increase Decrease Unchanged
ROI	%	(Click to select) Decrease Unchanged Increase

3.	Using Lean Production, the company is able to reduce the average level of inventory by $100,000. (The released funds are used to pay off bank loans.) (Round your intermediate calculations and final answers to 2 decimal places.)

		Effect
Margin	%	(Click to select) Unchanged Decrease Increase
Turnover		(Click to select) Increase Decrease Unchanged
ROI	%	(Click to select) Increase Unchanged Decrease

4.	Sales are increased by $198,800; operating assets remain unchanged. (Round your intermediate calculations and final answers to 2 decimal places.)

		Effect
Margin	%	(Click to select) Decrease Unchanged Increase
Turnover		(Click to select) Decrease Increase Unchanged
ROI	%	(Click to select) Unchanged Increase Decrease

5.

The company issues bonds and uses the proceeds to purchase $129,000 in machinery and equipment at the beginning of the period. Interest on the bonds is $12,000 per period. Sales remain unchanged. The new, more efficient equipment reduces production costs by $4,000 per period. (Round your intermediate calculations and final answers to 2 decimal places.)

		Effect
Margin	%	(Click to select) Increase Unchanged Decrease
Turnover		(Click to select) Unchanged Increase Decrease
ROI	%	(Click to select) Unchanged Decrease Increase

6.	The company invests $183,000 of cash (received on accounts receivable) in a plot of land that is to be held for possible future use as a plant site. (Round your intermediate calculations and final answers to 2 decimal places.)

		Effect
Margin	%	(Click to select) Increase Decrease Unchanged
Turnover		(Click to select) Increase Unchanged Decrease
ROI	%	(Click to select) Unchanged Increase Decrease

7.	Obsolete inventory carried on the books at a cost of $20,000 is scrapped and written off as a loss. (Round your intermediate calculations and final answers to 2 decimal places.)

		Effect
Margin	%	(Click to select) Decrease Unchanged Increase
Turnover		(Click to select) Increase Decrease Unchanged
ROI	%	(Click to select) Increase Decrease Unchanged

accounting help 448761

Aug 29, 2021 | Uncategorized

A corporation was organized on January 1 of the current year, with an authorization of 20,000 shares of $4 preferred stock, $12 par, and 100,000 shares of $3 par common stock.

The following selected transactions were completed during the first year of operations:

Jan. 3 Issued 15,000 shares of common stock at $23 per share for cash.

31. Issued 200 shares of common stock at par to an attorney in payment of legal fes for organizing the corporation. The value of the stock at the time of payment was $25 per share.

Feb. 24 Issued 20,000 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $65,000, $120,000, and $45,000 respectively.

Mar. 15 Issued 2,000 Shares of preferred stock at $56 for cash.

Journalize the above transactions. For a compound transaction, if an amount box does not require an entry, leave it blank or enter “0”.

accounting 448767

Aug 29, 2021 | Uncategorized

Crumple Car Rentals is planning to expand into the western part of the U.S. and needs to acquire approximately 400 additional automobiles for rental purposes. Crumple%u2019s cash reserves were substantially depleted in replacing the bumpers on existing automobiles with new ones; therefore, the expansion funds must be acquired from external sources. Crumple%u2019s management has identified three options:

Issue additional debt.
Create a wholly owned leasing subsidiary that would borrow the money with a guarantee for payment from Crumple. The subsidiary would then lease the cars back to Crumple.
Create a trust that would borrow the money with a guarantee for repayment from Crumple and lease the cars to it. In the event of liquidation, the residual value of the trust would revert to an outside third party, the Historical Preservation Society of Pleasantville.

The acquisition price of the cars is approximately the same under all three alternatives.

Compare and contrast the three options given on the basis of the points listed below:

The impact on Crumple%u2019s consolidated balance sheet
Their legal ramifications
The ability to control the repair, maintenance, and replacement of the automobiles

According to you, which one is the best alternative among the three and why? Justify your answer with appropriate reasoning

managerial accounting 448773

Aug 29, 2021 | Uncategorized

In December 2010, Gomez Company%u2019s manager estimated next year%u2019s total direct labor cost assuming 50 persons working an average of 2,020 hours each at an average wage rate of $15 per hour. The manager also estimated the following manufacturing overhead costs for year 2011.


Indirect labor	$	167,950
Factory supervision		127,000
Rent on factory building		74,000
Factory utilities		44,400
Factory insurance expired		34,500
Depreciation%u2014Factory equipment		240,000
Repairs expense%u2014Factory equipment		31,900
Factory supplies used		35,900
Miscellaneous production costs		17,000

Total estimated overhead costs	$	772,650

At the end of 2011, records show the company incurred $747,062 of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job 201, $364,000; Job 202, $331,000; Job 203, $168,000; Job 204, $423,000; and Job 205, $189,000. In addition, Job 206 is in process at the end of 2011 and had been charged $11,200 for direct labor. No jobs were in process at the end of 2010. The company%u2019s predetermined overhead rate is based on direct labor cost.

Required
1a.	Determine the predetermined overhead rate for year 2011. (Omit the “%” sign in your response.)

Predetermined overhead rate

%

1b.

Determine the total overhead cost applied to each of the six jobs during year 2011. (Omit the “$” sign in your response.)

Job No.	Applied Overhead
201	$
202
203
204
205
206

Total	$

1c.

Determine the over or underapplied overhead at year end 2011. (Input all amounts as positive values. Omit the “$” sign in your response.)

$

2.	Assuming that any over or underapplied overhead is not material, prepare the adjusting entry to allocate any over or underapplied overhead to Cost of Goods Sold at the end of year 2011. (Omit the “$” sign in your response.)

Date	General Journal	Debit	Credit
Dec. 31

understand the differences between statistical and non statistical sampling 448778

Aug 29, 2021 | Uncategorized

CASE 9.6
Hooplah, Inc. Applying Audit Sampling Concepts to Tests of Controls and Substantive Testing in the Revenue Cycle
MARK S. BEASLEY FRANK A. BUCKLESS • STEVEN M. GLOVER • DOUGLAS F. PRAWITT
LEARNING OBJECTIVES
After completing and discussing this case you should be able to
[1] Understand the differences between statistical and non statistical sampling [21 Appreciate the professional judgment involved in determining the extent of sampling to be performed [3] Appreciate the role of sampling risk in determining sample size and in evaluating results
Understand how to perform attribute sampling for tests of controls Know how and why it is important to consider size and risk based substantive testing prior to obtaining evidence using audit sampling Understand the implications of the results of tests of controls on substantive testing
INTRODUCTION Your audit firm, Garrett and Schulzke LLP, is engaged to perform the annual audit of Hooplah, Inc., for the year ending December 31, 2011. Hooplah is a privately held company that sells electronics components to companies that manufacture various appliances. The company hires a public accounting firm to provide an audit of its financial statements in order to get favorable terms on its bank loans. Your firm has audited Hooplah for the past three years. For the current audit engagement, your team has already performed most of the audit work; however, there are a few loose ends for you to tie up. Portions of Garrett and Schulzke’s audit policy relating to audit sampling are provided to assist you in completing the procedures.
AUDIT SAMPLING Audit sampling is commonly applied in performing tests of controls and tests of details. Audit sampling involves the application of audit procedures to less than 100 percent of the items in a population of audit relevance, selected in such a way that the auditor expects the sample to be representative of the population and thus likely to provide a reasonable basis for conclusions about the population. A sample is usually selected either randomly (using some form of random number generator) or haphazardly (where the auditor attempts to select items randomly but without using a formal random number generator). Auditors often use sampling approaches that involve formal statistical theories and principles, similar to those you may have learned in an introductory statistics class. Statistical sampling applications require the use of random selection, based on a formal random number generator (such as the one built in to Microsoft Excel or audit software such as ACL). Auditing standards also allow
The case was prepared by Mark S. Beasley, Ph.D. and Frank A. liuckless, Ph.D. of North Carolina State University and Steven M. Glover, Ph.D. and Douglas F. Prawitt, Ph.D. of Brigham Young University, as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of an administrative situation. Hooplah, Inc. is a fictitious company. All characters and names represented are fictitious; any similarity to existing companies or persons is purely coincidental.
Copyright © 2012 by Pearson Education, Inc., Upper Saddle River, NJ 07458
281

Attachments:

Part A Test….pdf

Written Assig….pdf

Instruction.docx

journalize the two transactions 448779

Aug 29, 2021 | Uncategorized

On December 31, 2011, Walden owned the following securities that are held as a long term investment. The securities are not held for influence or control of the investee.

Common Stock Shares Cost

X Co. 2,000 $90,000

Y Co. 5,000 45,000

Z Co. 1,500 30,000

On this date, the total fair value of the securities was equal to its cost. In 2012, the following transactions occurred:

July 1 Received $1 per share semiannual cash dividend on Y Co. Common Stock.

8 Received 4,000 shares of X Co. Common Stock in a 3 for 1 stock split.

Required

(a) Journalize the two transactions above. If no journal entry is required put N/A next to the date.

July 1

July 8

(b) Assuming at December 31, 2011 (Ignore 2012 activity) the fair values per share of the common stocks were: X Co. $10, Y Co. $8, and Z Co. $5prepare the adjusting entry to show the securities at fair value assuming they are classified as “available for sale securities”.

(c) Indicate where any unrealized gain/loss would be reported (Income Statement or Balance Sheet?).

glaser health 448794

Aug 29, 2021 | Uncategorized

(a) Depreciation on factory equipment.

(b) Depreciation on office equipment.

(c) Depreciation on factory building.

(d) Advertising manager’s salary.

(e) Assembly foreman’s salary.

(f) Salespersons’ salaries.

(g) Salespersons’ travel expenses.

(h) Supplies for the Machining Department.

(i) Advertising supplies used.

(j) Electricity for the Assembly Department.

(k) Lost materials (scrap) in a Machining Department.

(l) Direct labor in the Assembly Department.

(m) Supplies for the sales office.

(n) Sales commissions.

(o) Packing supplies.

(p) Cost of hiring new employees.

(q) Payroll fringe benefits for workers in the Shipping Department.

(r) Supplies for Production Scheduling.

(s) Cost of repairing parts improperly manufactured in the Machining Department.

(t) Paint for the Assembly Department.

(u) Heat, light, and power for the factory.

(v) Leasing of computer equipment for the Accounting Department.

Specify an appropriate cost driver for tracing costs associated with the various levels of activities to the next cost objective or products, whichever is appropriate

help please 448580

Aug 29, 2021 | Uncategorized

8.Journalize the following transactions (Assume a 360 day year when calculating interest.):

Mar. 1	Received a 90 day, 10% note for $24,000, dated March 1, from Batson Co. on account.
May 30	The note of March 1 was dishonored.

9.Journalize the following transactions for Solley Company that occurred during 2011 and 2012.

November 14, 2011 Received a $4,800.00, 90 day, 9% note from Alan Hibbetts in payment of his account.

December 31, 2011 Accrued interest on the Hibbetts note.

February 12, 2012 Received the amount due from Hibbetts on his note.

Date	Description	Post Ref	Debit	Credit

help pleeeese 448581

Aug 29, 2021 | Uncategorized

8.Journalize the following transactions using the allowance method of accounting for uncollectible receivables.

April 1 Sold merchandise on account to Jim Dobbs, $7,200. The cost of the merchandise is $5,400.

June 10 Received payment for one third of the receivable from Jim Dobbs and wrote off the remainder.

Oct. 11 Reinstated the account of Jim Dobbs and received cash in full payment.

9.Journalize the following transactions using the direct write off method of accounting for uncollectible receivables.

April 1 Sold merchandise on account to Jim Dobbs, $7,200. The cost of the merchandise is $5,400.

June 10 Received payment for one third of the receivable from Jim Dobbs and wrote off the remainder.

Oct. 11 Reinstated the account of Jim Dobbs for and received cash in full payment.

10.Journalize the following transactions using the direct write off method of accounting for uncollectible receivables:
Feb 20 Received $1,000 from Andrew Warren and wrote off the remainder owed of $4,000 as uncollectible.
May 10 Reinstated the account of Andrew Warren and received $4,000 cash in full payment.

variance 448585

Aug 29, 2021 | Uncategorized

Able Control Company, which manufactures electrical switches, uses a standard cost system and carries all

inventory at standard cost. The standard factory overhead cost per switch is based on DLHs.

Problem Information

Variable overhead 5 hours at $8.00 /hour $40.00

Fixed overhead* 5 hours at $12.00 /hour $60.00

Total standard overhead cost per unit produced $100.00

* Based on a practical capacity of 300,000 DLHs per month.

The following information is for the month of October:

Actual units produced 56,000

Practical capacity (in units) 60,000

Actual DLHs worked 275,000

Actual DL cost incurred $2,550,000

Actual variable overhead costs incurred $2,340,000

Actual fixed overhead costs incurred $3,750,000

The production manager argued during the last performance review that the company should use a more up to date base

for charging factory overhead costs to production. She commented that her factory had been highly automated in the last

two years and, as a result, now has hardly any labor. The factory hires only highly skilled workers to set up production runs

and to do periodic adjustments of machinery whenever the need arises.

Requirements

1. Compute the following for Able Control Company:

a. The fixed overhead spending variance for October.

b. The factory overhead production volume variance for October.

c. The variable overhead spending variance for October.

d. The variable overhead efficiency variance for October.

2. Comment on the implications of the variances and suggest any action that the firm should take to improve

its operations.

what are three advantages of activity based costing over traditional volume based al 448602

Aug 29, 2021 | Uncategorized

What are three advantages of activity based costing over traditional volume based allocation methods?

	Ease of use, more accurate product costing, and more effective cost control.
	Fewer allocation bases, ease of use, and a direct correlation to production volume.
	More accurate product costing, more effective cost control, and better focus on the relevant factors for decision making.
	More accurate product costing, fewer cost objects, and a direct correlation to production volume.
	More accurate product costing, ease of use, less costly to implement.

flexible budget for selling and administrative expenses 448607

Aug 29, 2021 | Uncategorized

Agent Blaze uses flexible budgets that are based on the following data:

Sales commissions . . . . . . . . . . . . . . . . . 6% of sales

Advertising expense . . . . . . . . . . . . . . . . 20% of sales

Miscellaneous selling expense . . . . . . $2,500 plus 2% of sales

Office salaries expense . . . . . . . . . . . . . . $17,000 per month

Office supplies expense . . . . . . . . . . . . . . .3% of sales

Miscellaneous administrative expense . . . $1,750 per month plus 1% of sales

Prepare a flexible selling and administrative expenses budget for January 2012, for sales volumes of $110,000, $140,000, and $165,000. Enter all amounts as positive numbers.

chapter 12 homework managerial accounting 448609

Aug 29, 2021 | Uncategorized

Andretti Company has a single product called a Dak. The company normally produces and sells 72,000 Daks each year at a selling price of $46 per unit. The company’s unit costs at this level of activity are given below:


Direct materials	$9.20
Direct labor	9.00
Variable manufacturing overhead	3.50
Fixed manufacturing overhead	7.00	($504,000 total)
Variable selling expenses	2.00
Fixed selling expenses	5.40	($388,800 total)
Total cost per unit	$36.10

A number of questions relating to the production and sale of Daks follow. Each question is independent.

Requirement 1:
(a)	Assume that Andretti Company has sufficient capacity to produce 93,600 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its sales by 30% above the present 72,000 units each year if it were willing to increase the fixed selling expenses by $129,000. Compute the Incremental net operating income. (Omit the “$” sign in your response.)

Incremental net operating income

$

(b)	Would the increased fixed selling expenses be justified?

	(Click to select) No Yes

Requirement 2:

Assume again that Andretti Company has sufficient capacity to produce 93,600 Daks each year. A customer in a foreign market wants to purchase 10,000 Daks. Import duties on the Daks would be $1.40 per unit, and costs for permits and licenses would be $10,000. The only selling costs that would be associated with the order would be $1.00 per unit shipping cost. Compute the per unit break even price on this order. (Round your answer to 2 decimal places. Omit the “$” sign in your response.)

Break even price per unit

$

Requirement 3:

The company has 500 Daks on hand that have some irregularities and are therefore considered to be “seconds.” Due to the irregularities, it will be impossible to sell these units at the normal price through regular distribution channels. What unit cost figure is relevant for setting a minimum selling price? (Round your answer to 2 decimal places. Omit the “$” sign in your response.)

Relevant cost is

$ per unit

Requirement 4:

Due to a strike in its supplier’s plant, Andretti Company is unable to purchase more material for the production of Daks. The strike is expected to last for two months. Andretti Company has enough material on hand to operate at 25% of normal levels for the two month period. As an alternative, Andretti could close its plant down entirely for the two months. If the plant were closed, fixed manufacturing overhead costs would continue at 60% of their normal level during the two month period and the fixed selling expenses would be reduced by 25%. What would be the impact on profits of closing the plant for the two month period? (Input the amount as positive value. Omit the “$” sign in your response.)

Profits would (Click to select) increase decrease by $

Requirement 5:

An outside manufacturer has offered to produce Daks and ship them directly to Andretti’s customers. If Andretti Company accepts this offer, the facilities that it uses to produce Daks would be idle; however, fixed manufacturing overhead costs would be reduced by 30%. Because the outside manufacturer would pay for all shipping costs, the variable selling expenses would be only three fourth of their present amount. Compute the unit cost that is relevant for comparison to the price quoted by the outside manufacturer.(Round your answer to 2 decimal places. Omit the “$” sign in your response.)

Quotation must be less than $ per unit.

direct materials purchases budget 448612

Aug 29, 2021 | Uncategorized

Anticipated sales for Sure Grip Tire Company were 66,000 passenger car tires and 20,000 truck tires. Beginning and ending finished goods inventories for both products were negligible, and thus were omitted from the sales budget. Rubber and steel belts are used in producing passenger car and truck tires according to the following table:

	Passenger Car	Truck
Rubber	31 lbs. per unit	72 lbs. per unit
Steel belts	6 lbs. per unit	15 lbs. per unit

The purchase prices of rubber and steel are $3.00 and $3.90 per pound, respectively. The desired ending inventories of rubber and steel belts are 62,000 and 13,000 pounds, respectively. The estimated beginning inventories for rubber and steel belts are 73,000 and 11,000 pounds, respectively.

Prepare a direct materials purchases budget for Sure Grip Tire Company for the year ended December 31, 2012.

market values 448614

Aug 29, 2021 | Uncategorized

Appling Enterprises issued 8% bonds with a face amount of $400,000 on January 1, 2013. The bonds sold for $331,364 and mature in 2032 (20 years). For bonds of similar risk and maturity the market yield was 10%. Interest is paid semiannually on June 30 and December 31. Appling determines interest expense at the effective rate. Appling elected the option to report these bonds at their fair value. The fair values of the bonds at the end of each quarter during 2013 as determined by their market values in the over the counter market were the following:


March 31	$	350,000
June 30		340,000
September 30		335,000
December 31		342,000

Required:
1.	By how much will Appling%u2019s earnings be increased or decreased by the bonds (ignoring taxes) in the March 31 quarterly financial statements? (Input the amount as positive value. Round your answer to the nearest dollar amount.)

Appling’s earnings will be (Click to select) decreased increased by $

2.	By how much will Appling%u2019s earnings be increased or decreased by the bonds (ignoring taxes) in the June 30 quarterly financial statements? (Input the amount as positive value. Round your answer to the nearest dollar amount.)

Appling’s earnings will be (Click to select) increased decreased by $

3.	By how much will Appling%u2019s earnings be increased or decreased by the bonds (ignoring taxes) in the September 30 quarterly financial statements? (Input the amount as positive value. Round your answer to the nearest dollar amount.)

Appling’s earnings will be (Click to select) increased decreased by $

4.	By how much will Appling%u2019s earnings be increased or decreased by the bonds (ignoring taxes) in the December 31 annual financial statements? (Input the amount as positive value. Round your answer to the nearest dollar amount.)

Appling’s earnings will be (Click to select) decreased increased by $

accounting help 448621

Aug 29, 2021 | Uncategorized

Assume it is Monday, May 1, 2011, the first business day of the month, and you have just been hired as the accountant for Colo Company, which operates with monthly accounting periods. All of the company%u2019s accounting work is completed through the end of April and its ledgers show April 30 balances. During your first month on the job, the company experiences the following transactions and events (terms for all its credit sales are 2/10, n/30 unless stated differently):

May 1		Issued Check No. 3410 to S&P Management Co. in payment of the May rent, $2,970. (Use two lines to record the transaction. Charge 70% of the rent to Rent Expense Selling Space and the balance to Rent Expense Office Space.)
2		Sold merchandise on credit to Hensel Company, Invoice No. 8785, for $6,300 (cost is $4,300).
2		Issued a $200 credit memorandum to Knox Co., for defective (worthless) merchandise sold on April 28 and returned for credit. The total selling price (gross) was $5,000.
3		Received a $800 credit memorandum from Peyton Products for the return of merchandise purchased on April 29.
4		Purchased the following on credit from Gear Supply Co.: merchandise, $36,372; store supplies, $590; and office supplies, $92. Invoice dated May 4, terms n/10 EOM.
5		Received payment from Knox Co., for the balance from the April 28 sale less the May 2 return and the discount.
8		Issued Check No. 3411 to Peyton Products to pay for the $7,000 of merchandise purchased on April 29 less the May 3 return and a 2% discount.
9		Sold store supplies to the merchant next door at their cost of $366 cash.
10		Purchased $4,600 of office equipment on credit from Gear Supply Co., invoice dated May 10, terms n/10 EOM.
11		Received payment from Hensel Company for the May 2 sale less the discount.
11		Purchased $9,700 of merchandise from Garcia, Inc., invoice dated May 10, terms 2/10, n/30.
12		Received an $850 credit memorandum from Gear Supply Co. for the return of defective office equipment received on May 10.
15		Issued Check No. 3412, payable to Payroll, in payment of sales salaries, $4,520, and office salaries, $2,250. Cashed the check and paid the employees.
15		Cash sales for the first half of the month are $59,220 (cost is $41,600). (Cash sales are recorded daily but are recorded only twice here to reduce repetitive entries.)
15		Post to the customer and creditor accounts. Also post individual items that are not included in column totals at the end of the month to the general ledger accounts. (Such items are posted daily but are posted only twice each month because they are few in number.)
16		Sold merchandise on credit to Hensel Company, Invoice No. 8786, for $4,400 (cost is $2,300).
17		Purchased $13,600 of merchandise from Fink Corp., invoice dated May 14, terms 2/10, n/60.
19		Issued Check No. 3413 to Garcia, Inc., in payment of its May 10 invoice less the discount.
22		Sold merchandise to Lee Services, Invoice No. 8787, for $7,200 (cost is $5,340), terms 2/10, n/60.
23		Issued Check No. 3414 to Fink Corp. in payment of its May 14 invoice less the discount.
24		Purchased the following on credit from Gear Supply Co.: merchandise, $8,620; store supplies, $700; and office supplies, $265. Invoice dated May 24, terms n/10 EOM.
25		Purchased $3,250 of merchandise from Peyton Products, invoice dated May 23, terms 2/10, n/30.
26		Sold merchandise on credit to Crane Corp., Invoice No. 8788, for $14,900 (cost is $8,920).
26		Issued Check No. 3415 to Perennial Power in payment of the May electric bill, $1,269.
29		The owner of Colo Company, Jenny Colo, used Check No. 3416 to withdraw $6,100 cash from the business for personal use.
30		Received payment from Lee Services for the May 22 sale less the discount.
30		Issued Check No. 3417, payable to Payroll, in payment of sales salaries, $4,520, and office salaries, $2,250. Cashed the check and paid the employees.
31		Cash sales for the last half of the month are $66,450 (cost is $42,050).
31		Post to the customer and creditor accounts. Also post individual items that are not included in column totals at the end of the month to the general ledger accounts. Foot and crossfoot the journals and make the month end postings.

Following accounting adjustments are also available:

a.	Expired insurance, $553.
b.	Ending store supplies inventory, $2,650.
c.	Ending office supplies inventory, $516.
d.	Depreciation of store equipment, $563.
e.	Depreciation of office equipment, $324.

Assume that Colo Co. uses the perpetual inventory system. Following opening balances are available for
the month of May, 2011.

	Balance
Cash	$	51,047
Accounts Receivable		5,000
Merchandise Inventory		221,480
Office Supplies		490
Store Supplies		2,617
Prepaid Insurance		3,488
Office Equipment		23,770
Accumulated Depreciation%u2013Office Equipment		9,838
Store Equipment		39,320
Accumulated Depreciation%u2013Store Equipment		17,196
Accounts Payable		7,000
Jenny Colo, Capital		313,178

Required:

1. Enter these transactions in a sales journal, a purchases journal, a cash receipts journal, a cash disbursements journal.
Prepare the general journal.
Prepare the adjusting entries.
Prepare the closing entries.
Prepare a trial balance in the Trial Balance columns of the work sheet form provided below using the information for accounting adjustments for the month ended May 31, 2011.

Post the entries into the following ledger accounts.

Prepare a May 2011 multiple step income statement.
Prepare a May 2011 statement of owner%u2019s equity.

Prepare a May 2011 classified balance sheet.

Prepare a post closing trial balance for the month ended May 31, 2011.
Prepare a schedules of accounts receivable.
Prepare a schedules of accounts payable.

units variable and fixed 448626

Aug 29, 2021 | Uncategorized

Atlantic Company produces a single product. For the most recent year, the company’s net operating income computed by the absorption costing method was $7,400, and its net operating income computed by the variable costing method was $10,100. The company’s unit product cost was $17 under variable costing and $22 under absorption costing. If the ending inventory consisted of 1,460 units, the beginning inventory must have been:

Which of the following statements is true?

(A) Expenses are not usually separated into variable and fixed elements in externally reported income statements.

(B) Even if there is no change in units sold, selling price, or cost structure, a company can increase its absorption costing net operating income from one year to the next just by producing more units.

(C) When finished goods inventory decreases during a period, a manufacturing company’s absorption costing net operating income for that period will usually be greater than its variable costing net operating income.

(D) Both A and B above.

Walsh Company produces a single product. Last year, the company manufactured 25,000 units and sold 22,000 units. Production costs were as follows:

Direct Material $100,000

Direct Labor$75000

Variable manufacturing Overhead$50,000

Fixed manufacturing Overhead$75,000

The net operating income under variable costing would be:

Charrd Corporation manufactures a gas operated barbecue grill. The following information relates to Charrd’s operations for last year:

Unit product cost under absorption costing	$67 per unit
Fixed manufacturing overhead cost for the year	$130,500
Fixed selling and administrative cost for the year	$130,500
Units (grills) produced and sold	26,100

What is Charrd’s variable costing unit product cost?

Silver Company produces a single product. Last year, the company’s variable production costs totaled $7,500 and its fixed manufacturing overhead costs totaled $4,500. The company produced 3,000 units during the year and sold 2,400 units. There were no units in the beginning inventory. Which of the following statements is true?

The ending inventory under variable costing will be $900 lower than the ending inventory under absorption costing.

Under absorption costing, the units in ending inventory will be costed at $2.50 each.

Under variable costing, the units in the ending inventory will be costed at $4 each.

The net operating income under absorption costing for the year will be $900 lower than the net operating income under variable costing.

Caparros Corporation manufactures a variety of products. Variable costing net operating income was $62,800 last year and was $74,900 this year. Last year, ending inventory decreased by 3,300 units. This year, ending inventory increased by 1,900 units. Fixed manufacturing overhead cost is $7 per unit.

$53,000

$61,600

$88,200

$65,100

some accounting help please 448627

Aug 29, 2021 | Uncategorized

The Audiology Department at Randall Clinic offers many services to the clinic’s patients.The three most common, along with cost and utilization data, are as follows:

Sevice Variable Cost per serivce Annual Direct costs Annual Number of visits

Basic examination $5 $50,000 3,000
Advanced examination 7 30,000 1,500
Therapy session 10 40,000 500

a. What is the fee schedule for these services, assuming that the goal is to cover only
variable and direct fixed costs?

b. Assume that the Audiology Department is allocated $100,000 in total overhead by
the clinic, and the department director has allocated $50,000 of this amount to the
three services listed above.What is the fee schedule assuming that these overhead
costs must be covered? (To answer this question, assume that the allocation of
overhead costs to each service is made on the basis of number of visits.)

intermediate accounting 448628

Aug 29, 2021 | Uncategorized

On August 31, 2013, the Silva Company sold merchandise to the Bendix Corporation for $250,000. Terms of the sale called for a down payment of $50,000 and four annual installments of $50,000 due on each August 31, beginning August 31, 2014. Each installment also will include interest on the unpaid balance applying an appropriate interest rate. The book value of the merchandise on Silva’s books on the date of sale was $150,000. The perpetual inventory system is used. The company’s fiscal year end is December 31.

Required:

1.	Complete the table below by entering the amount of gross profit to be recognized in each of the five years of the installment sale applying each of the following methods:
	a. Point of delivery revenue recognition.
	b. Installment sales method.
	c. Cost recovery method. and I need Journal entries (ignore interest charges) for point of delivery and installments sales method, and cost recovery method . Record the sale of merchandise on August 31, 2013. 2. Record the cost of goods sold on August 31, 2013. 3. Record the cash collections on August 31, 2013. 4. Record the gross profit recognized on August 31, 2013. 5. Record the cash collections on August 31, 2014. 6. Record the gross profit recognized on August 31, 2014. 7. Record the cash collections on August 31, 2015. 8. Record the gross profit recognized on August 31, 2015. 9. Record the cash collections on August 31, 2016. 10. Record the gross profit recognized on August 31, 2016. 11. Record the cash collections on August 31, 2017 Record the gross profit recognized on August 31, 2017

departmental overhead rate 448633

Aug 29, 2021 | Uncategorized

Aztec Industries produces bread which goes through two operations, mixing and baking, before it is ready to be packaged. Next year’s expected costs and activities are shown below.

	Mixing	Baking
Direct Labor Hours	340,000 DLH	96,000 DLH
Machine Hours	1,317,500 MH	1,317,500 MH
Overhead Costs	$1,054,000	$633,600

Compute Aztec’s departmental overhead rate for the mixing department based on direct labor hours.

	$3.10 per DLH.
	$6.60 per DLH.
	$0.80 per DLH.
	$0.48 per DLH.
	$2.08 per DLH.

waterways continuing problem 448636

Aug 29, 2021 | Uncategorized

b) Waterways is thinking of mass producing one of its special order sprinklers. To do so would increase variable costs for all sprinklers by an average of $0.70 per unit. The company also estimates that this change could increase the overall number of sprinklers sold by 10%, and the average sales price would increase $0.20 per unit. Waterways currently sells 491,740 sprinkler units at an average selling price of $26.50. The manufacturing costs are $6,863,512 variable and $2,050,140 fixed. Selling and administrative costs are $2,651,657 variable and $794,950 fixed.
(1) If Waterways begins mass producing its special order sprinklers, how would this affect the company?
(2) If the average sales price per sprinkler unit did not increase when the company began mass producing the special order sprinkler, what would be the effect on the company?

current noncurrent classification of debt 448637

Aug 29, 2021 | Uncategorized

The balance sheet at December 31, 2013, for Nevada Harvester Corporation includes the liabilities listed below:

a. 11% bonda with a face amount of $40 million were issued for $40 million on October 31, 2004. The bonds mature on October 31, 2024. Bondholders have the option of calling (demanding payment on) the bonds on October 31, 2014, at a redemption price of $40 million. Market conditions are such that the call is not expected to be exercised.

b. Management intended to refinance $6 million of its 10% notes that mature in May 2014. In early March, prior to the actual issuance of the 2013 financial statements, Nevada Harvester negotiated a line of credit with a commercial bank for up to $5 million any time during 2014. Any borrowings will mature two years from the date of borrowing.

c. Noncallable 12% bonds with a face amount of $20 million were issued for $20 million on September 30, 1988. The bonds mature on September 30, 2014. Sufficient cash is expected to be available to reture the bonds at maturity.

d. A $12 million 9% bank loan is payable on October 31, 2019. The bank has the right to demand payment after any fiscal year end in which Nevada Harvester’s ratio of current assets to current liabilities falls below a contractual minimum of 1.7 to 1 and remains so for six months. The ratio was 1.45 on December 31, 2013, due primarily to an intentional temporary decline in inventory levels. Normal inventory levels will be reestablished during the first quarter of 2014.

1. Prepare the liability section of a classified balance sheet and any necessary footnote disclosure for Nevada Harvester at December 21, 2013. Accounts payable and accruals are $22 million.

acquisitions and adjustments to equity method 448658

Aug 29, 2021 | Uncategorized

Big Corporation purchased 10% of Small Corporation on Jan 1, 2012 for 300,000 and classified the investments as an available for sale security Big acquires and additional 15 per cent of Small on January 1, 2013 for $450,000 and now Big accounts investment in Small under equity method. Small reports income of $50,000 and $80,000 in 2012 and 2013 respectively and pays dividends of $$20,000 in each of these two years.

a. How does Big initially determine the income to be reported in 2012 in connection with its ownership of Small?
b. What factors should have influence Big in its decision to apply the equity method in 2013
c. In comparative statements for 2012 and 2013 how would Big determine the income to be reported in 2012 in connection with its ownership of Small? Why is this accounting appropriate?

chapter 12 homework 448659

Aug 29, 2021 | Uncategorized

Birch Company normally produces and sells 37,000 units of RG 6 each month. RG 6 is a small electrical relay used as a component part in the automotive industry. The selling price is $49 per unit, variable costs are $19 per unit, fixed manufacturing overhead costs total $224,000 per month, and fixed selling costs total $303,000 per month.

Employment contract strikes in the companies that purchase the bulk of the RG 6 units have caused Birch Company’s sales to temporarily drop to only 12,000 units per month. Birch Company estimates that the strikes will last for two months, after which time sales of RG 6 should return to normal. Due to the current low level of sales, Birch Company is thinking about closing down its own plant during the strike, which would reduce its fixed manufacturing overhead costs by $55,000 per month and its fixed selling costs by 11%. Start up costs at the end of the shutdown period would total $14,000. Because Birch Company uses Lean Production methods, no inventories are on hand.

Requirement 1:
(a)	Assuming that the strikes continue for two months, compute the increase or decrease in income in closing the plant. (Input the amount as positive value. Omit the “$” sign in your response.)

(Click to select) Decrease Increase in income

$

(b)	Would you recommend that Birch Company close the Northwest plant?

	(Click to select) No Yes

Requirement 2:

At what level of sales (in units) for the two month period should Birch Company be indifferent between closing the plant or keeping it open? (Round your answer to the nearest whole number.)

please answer asap answer must be correct to receive lifesaver 448665

Aug 29, 2021 | Uncategorized

Black & Decker (B&D) manufactures a wide variety of tools and accessories. One of its more popular items is a cordless power handisaw. Use the following fictitious information about this product line to complete the problem requirements. Each handisaw sells for $40. B&D expects the following unit sales.


January	2,100
February	2,500
March	3,000
April	2,600
May	2,000

B&D’s ending finished goods inventory policy is 20 percent of the next month’s sales.

Suppose each handisaw takes approximately .55 hours to manufacture, and B&D pays an average labor wage of $14.50 per hour.

Each handisaw requires a plastic housing that B&D purchases from a supplier at a cost of $6.00 each. The company has an ending raw materials inventory policy of 10 percent of the following month’s production requirements. Materials other than the housing unit total $3.50 per handisaw.

Manufacturing overhead for this product includes $69,000 annual fixed overhead (based on production of 24,000 units) and $.90 per unit variable manufacturing overhead. B&D’s selling expenses are 6 percent of sales dollars, and administrative expenses are fixed at $18,000 per month.

Requirement 1:

Calculate the cost of goods sold budget for Black & Decker (B&D) for the first quarter (January, February, and March). Include each month as well as the first quarter. (Round cost per unit to 2 decimal places. Round final answers to the nearest dollar amount. Omit the “$” sign in your response.)

	January	February	March	1^st Quarter
Budgeted cost of goods sold	$	$	$	$

Requirement 2:

Calculate the selling and administrative expense budget for Black & Decker (B&D) for the first quarter (January, February, and March). Include each month as well as the first quarter. (Omit the “$” sign in your response.)

	January	February	March	1^st Quarter
Budgeted selling and adm. expenses	$	$	$	$

Requirement 3:

Calculate the budgeted income statement for the handisaw product for Black & Decker (B&D) for the first quarter (January, February, and March). Include each month as well as the first quarter. (Input all amounts as positive value. Round cost per unit to 2 decimal places. Round final answers to the nearest dollar amount. Omit the “$” sign in your response.)

	January	February	March	1^st Quarter
Budgeted sales revenue	$	$	$	$
Budgeted cost of goods sold

Budgeted gross profit
Budgeted selling and adm. expenses

Budgeted net income	$	$	$	$

check my work

5 6 please use my question and explain how you got your answer 448669

Aug 29, 2021 | Uncategorized

“Blast it!” said David Wilson, president of Teledex Company. “We’ve just lost the bid on the Koopers job by $10,200. It seems we’re either too high to get the job or too low to make any money on half the jobs we bid.”

Teledex Company manufactures products to customers’ specifications and operates a job order costing system. Manufacturing overhead cost is applied to jobs on the basis of direct labor cost. The following estimates were made at the beginning of the year:

	Department
	Fabricating	Machining	Assembly	Total plant
Direct labor	$300,000	$201,000	$401,000	$902,000
Manufacturing overhead	$540,000	$804,000	$100,250	$1,444,250

Jobs require varying amounts of work in the three departments. The Koopers job, for example, would have required manufacturing costs in the three departments as follows:

	Department
	Fabricating	Machining	Assembly	Total plant
Direct materials	$11,900	$900	$5,500	$18,300
Direct labor	$6,500	$1,700	$13,100	$21,300
Manufacturing overhead	?	?	?	?

The company uses a plantwide overhead rate to apply manufacturing overhead cost to jobs.

Requirement 1:

Assuming the use of a plantwide overhead rate:

a.	Compute the rate for the current year. (Round your answer to the nearest whole percent. Omit the “%” sign in your response.)

Predetermined overhead rate

% of direct labor cost

Requirement 2:

Suppose that instead of using a plantwide overhead rate, the company had used a separate predetermined overhead rate in each department. Under these conditions:

a.	Compute the rate for each department for the current year. (Omit the “%” sign in your response.)

	Predetermined overhead rate
Fabricating Department	%
Machining Department	%
Assembly Department	%

charged and uncharged costs managerial accounting 448671

Aug 29, 2021 | Uncategorized

Boulay Corporation has two operating divisions a North Division and a South Division. The company%u2019s Logistics Department services both divisions. The variable costs of the Logistics Department are budgeted at $34.3 per shipment. The Logistics Department%u2019s fixed costs are budgeted at $174,000 for the year. The fixed costs of the Logistics Department are determined based on peak period demand.

	Percentage of Peak Period Capacity Required			Budgeted Shipments
North Division		39	%	1,010
South Division		61	%	2,300

At the end of the year, actual Logistics Department variable costs totaled $140,751 and fixed costs totaled $188,210. The North Division had a total of 2,010 shipments and the South Division had a total of 2,000 shipments for the year.

Required:
a.	Calculate the amount of Logistics Department%u2019s costs that should be charged to each of the operating divisions at the end of the year. (Omit the “$” sign in your response.)

	North Division	South Division	Total
Total cost charged	$	$	$

b.	How much of the actual Logistics Department costs should not be charged to the operating divisions at the end of the year? (Omit the “$” sign in your response.)

	Variable	Fixed
Total uncharged cost	$	$

help 448558

Aug 29, 2021 | Uncategorized

3.Beginning inventory, purchases and sales data for tennis rackets are as follows:

Apr 3	Inventory	12 units	@	$45
11	Purchase	13 units	@	$47
14	Sale	18 units
21	Purchase	9 units	@	$60
25	Sale	10 units

Complete the inventory cost card assuming the business maintains a perpetual inventory system and calculates the cost of merchandise sold and ending inventory using FIFO.

	Purchases			Cost of Merchandise Sold			Inventory
Date	Qty	Unit Cost	Total Cost	Qty	Unit Cost	Total Cost	Qty	Unit Cost	Total Cost





Balances

really need your help 448560

Aug 29, 2021 | Uncategorized

3.Beginning inventory, purchases and sales data for widgets are as follows:

Apr 3	Inventory	15 units	@	$30
11	Purchase	12 units	@	$27
14	Sale	18 units
21	Purchase	7 units	@	$25
25	Sale	10 units

Complete the inventory cost card assuming the business maintains a perpetual inventory system and calculates the cost of merchandise sold and ending inventory using FIFO.

	Purchases			Cost of Merchandise Sold			Inventory
Date	Qty	Unit Cost	Total Cost	Qty	Unit Cost	Total Cost	Qty	Unit Cost	Total Cost





Balances

4.Complete the chart using the LIFO and FIFO costing methods, assuming a period of increasing costs:

	Highest Amount	Lowest Amount
Cost of merchandise sold
Gross Profit
Net Income
Ending Merchandise Inventory

help please 448562

Aug 29, 2021 | Uncategorized

3.Beginning inventory, purchases, and sales for Product Weld TM are as follows:

Sep. 1	Beginning Inventory	24 units	@	$15
Sep. 5	Sale	17 units
Sep. 17	Purchase	10 units	@	$20
Sep. 30	Sale	8 units

Assuming a perpetual inventory system and the first in, first out method, determine (a) the cost of the merchandise sold for the September 30 sale and (b) the inventory on September 30.

4.Beginning inventory, purchases, and sales for Product Weld TM are as follows:

Sep. 1	Beginning Inventory	24 units	@	$10
Sep. 5	Sale	17 units
Sep. 17	Purchase	10 units	@	$15
Sep. 30	Sale	8 units

Assuming a perpetual inventory system and the last in, first out method, determine (a) the cost of the merchandise sold for the September 30 sale and (b) the inventory on September 30.

thomas kratzer is the purchasing manager for the headquarters of 284084

Aug 29, 2021 | Uncategorized

Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation. Thomas’s fastest moving inventory item has a demand of 6,000 units per year. The cost of each unit is $100, and the inventory carrying cost is $10 per unit per year. The average ordering cost is $30 per order. It takes about 5 days for an order to arrive, and the demand for 1 week is 120 units. (This is a corporate operation, and the are 250 working days per year.)

a) What is the EOQ?

b) What is the average inventory if the EOQ is used?

c) What is the optimal number of orders per year?

d) What is the optimal number of days in between any two orders?

e) What is the annual cost of ordering and holding inventory?

f) What is the total annual inventory cost, including cost of the 6,000 units?

use the following legend to indicate how each transaction would 284122

Aug 29, 2021 | Uncategorized

Use the following legend to indicate how each transaction would be reported on the statement of cash flows. (Assume that the company uses the direct method in the Operating Activities section.)

IO = Inflow from operating activities

OO = Outflow from operating activities

II = Inflow from investing activities

OI = Outflow from investing activities

IF = Inflow from financing activities

OF = Outflow from financing activities

NR = Not reported in the body of the statement of cash flows but included in a supplemental schedule

______ 1. Collected $10,000 in cash from customers’ open accounts for the period

______ 2. Paid one of the company’s inventory suppliers $500 in settlement of an open account

______ 3. Purchased a new copier for $6,000; signed a 90 day note payable

______ 4. Issued bonds at face value of $100,000

______ 5. Made $23,200 in cash sales for the week

______ 6. Purchased an empty lot adjacent to the factory for $50,000; the seller of the land agrees to accept a five year promissory note as consideration

______ 7. Renewed the property insurance policy for another six months; cash of $1,000 is paid for the renewal

______ 8. Purchased a machine for $10,000

______ 9. Paid cash dividends of $2,500

______ 10. Reclassified as short term a long term note payable of $5,000 that is due within the next year

______ 11. Purchased 500 shares of the company’s own stock on the open market for $4,000

______ 12. Sold 500 shares of Nike stock for book value of $10,000 (they had been classified as long term investments)

advance accounting 284193

Aug 29, 2021 | Uncategorized

you just need to work on Assignment 1 Question part 1 and part 2 files others files are only just sample solutions for tutore helpHow much?deadline 8 hours

Document Preview:

On July 1, 2013, Truman Company acquired a 70 percent interest in Atlanta Company in exchange for consideration of $749,000 in cash and equity securities. The remaining 30 percent of Atlanta’s shares traded closely near an average price that totaled $321,000 both before and after Truman’s acquisition.?? In reviewing its acquisition, Truman assigned a $112,500 fair value to a patent recently developed by Atlanta, even though it was not recorded within the financial records of the subsidiary. This patent is anticipated to have a remaining life of five years.?? The following financial information is available for these two companies for 2013. In addition, the subsidiary’s income was earned uniformly throughout the year. Subsidiary dividend payments were made quarterly.?? ?Truman ?Atlanta ??Revenues?$?(742,975?)?$?(468,000?)??Operating expenses??476,000???314,000???Income of subsidiary??(46,025?)?????????????Net income?$?(313,000?)?$?(154,000?)??? ? ? ? ? ? ??Retained earnings, 1/1/13?$?(906,000?)?$?(510,000?)??Net income (above)??(313,000?)??(154,000?)??Dividends paid??160,000???80,000???????????Retained earnings, 12/31/13?$?(1,059,000?)?$?(584,000?)??? ? ? ? ? ? ??Current assets?$?504,975??$?404,000???Investment in Atlanta??767,025??????Land??465,000???241,000???Buildings??720,000???646,000???????????Total assets?$?2,457,000??$?1,291,000???? ? ? ? ? ? ??Liabilities?$?(898,000?)?$?(387,000?)??Common stock??(95,000?)??(300,000?)??Additional paid in capital??(405,000?)??(20,000?)??Retained earnings, 12/31/13??(1,059,000?)??(584,000?)??????????Total liabilities and stockholders’ equity?$?(2,457,000??This document was truncated here because it was created in the Evaluation Mode.

Attachments:

calculate the amount of gross profit that would be recognized each year from install 284334

Aug 29, 2021 | Uncategorized

2013

2014

$

370,000

$

470,000

240,500

282,000

155,000

135,000

2014 sales

2.1	Prepare all necessary journal entries for the year 2013. (If no entry is required for a particular transaction, select “No journal entry required” in the first account field.)

185,
000

Attachments:

Ajax Company ….docx

accounting quetdsion 284342

Aug 29, 2021 | Uncategorized

3.

Curtiss Construction Company, Inc., entered into a fixed price contract with Axelrod by CouponDropDown”>Associates on July 1, 2013, to construct a four story office building. At that time, Curtiss estimated that it would take between two and three years to complete the project. The total contract price for construction of the building is $4,000,000. Curtiss appropriately accounts for this contract under the completed contract method in its financial statements. The building was completed on December 31, 2015. Estimated percentage of completion, accumulated contract costs incurred, estimated costs to by CouponDropDown”>complete the contract, and accumulated billings to Axelrod under the contract were as follows:

	At 12 31 13			At 12 31 14			At 12 31 15
Percentage of completion		15	%		65	%		100	%
Costs incurred to by CouponDropDown”>date	$	245,000		$	2,395,000		$	4,890,000
Estimated costs to complete		2,975,000			2,125,000			0
Billings to Axelrod, to date		650,000			1,575,000			2,445,000

1.

Complete the given information below to compute gross profit or loss to be recognized as a result of this contract for each of the three years.

2.	Assuming Curtiss uses the percentage of completion method of accounting for long term construction contracts, compute gross profit or loss to be recognized in each of the three years.

3.

Assuming the percentage of completion method, compute the amount to be shown in the balance sheet at the end of 2013 and 2014 as either cost in excess of billings or billings in excess of costs.

wiley company s income statement for year 2 follows 284352

Aug 29, 2021 | Uncategorized

Wiley Company’s income statement for Year 2 follows:

The company’s selling and administrative expense for Year 2 includes $7,500 of depreciation expense. Selected balance sheet accounts for Wiley at the end of Years 1 and 2 are as follows:

Required:

Using the direct method, convert the company’s income statement to a cash basis.

Assume that during Year 2 Wiley had a $9,000 gain on sale of investments and a $3,000 loss on the sale of equipment. Explain how these two transactions would affect your computations in (1)above.

accounting 1 serial problem 2 284354

Aug 29, 2021 | Uncategorized

After the success of the company’s first two months, Santana Rey continues to operate Business Solutions. Business Solutions had the following transactions and events in December 2011.

Dec.	2	Paid $1,025 cash to Hillside Mall for Business Solutions’ share of mall advertising costs.
	3	Paid $500 cash for minor repairs to the company’s computer.
	4	Received $3,950 cash from Alex’s Engineering Co. for the receivable from November.
	10	Paid cash to Lyn Addie for six days of work at the rate of $125 per day.
	14	Notified by Alex’s Engineering Co. that Business Solutions’ bid of $7,000 on a proposed project has been accepted. Alex’s paid a $1,500 cash advance to Business Solutions.
	15	Purchased $1,100 of computer supplies on credit from Harris Office Products.
	16	Sent a reminder to Gomez Co. to pay the fee for services recorded on November 8.
	20	Completed a project for Liu Corporation and received $5,625 cash.
	22–26	Took the week off for the holidays.
	28	Received $3,000 cash from Gomez Co. on its receivable.
	29	Reimbursed S. Rey for business automobile mileage (600 miles at $0.32 per mile).
	31	S. Rey withdrew $1,500 cash from the company for personal use.

The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company’s first three months:

a.	The December 31 inventory count of computer supplies shows $580 still available.
b.	Three months have expired since the 12 month insurance premium was paid in advance.
c.	As of December 31, Lyn Addie has not been paid for four days of work at $125 per day.
d.	The company’s computer is expected to have a four year life with no salvage value.
e.	The office equipment is expected to have a five year life with no salvage value.
f.	Three of the four months’ prepaid rent has expired.

Required:

1.

Prepare journal entries to record each of the December transactions and events for Business Solutions.

2.1

Prepare adjusting entries to reflectathroughf

2.2

Post the journal entries to record each of the December transactions and adjusting entries to the accounts in the ledger. Refer to the November 30, 2011 Unadjusted Trial Balance for the December 1 balances.

3.

Prepare an adjusted trial balance as of December 31, 2011.

4.

Prepare an income statement for the three months ended December 31, 2011

5.	Prepare a statement of owner’s equity for the three months ended December 31, 2011

6.	Prepare a balance sheet as of December 31, 2011.

with this case we review the profitability of several specialty 284360

Aug 29, 2021 | Uncategorized

With this case, we review the profitability of several specialty retail stores. The companies reviewed and the year end dates are as follows:

1. Abercrombie & Fitch Co.

(January 31, 2009—52 week; February 2, 2008—52 week; February 3, 2007—53 week)

?~?~Abercrombie & Fitch Co. …is a specialty retailer that operates stores and websites selling casual sportswear apparel.’’ 10 K

2. Limited Brands, Inc.

(January 31, 2009—52 week; February 2, 2008—52 week; February 3, 2007—53 week)

?~?~We operate in the highly competitive specialty retail business.’’ 10 K

3. GAP, Inc.

(January 31, 2009—52 week; February 2, 2008—52 week; February 3, 2007—53 week) ?~?~We are a global specialty retailer offering clothing, accessories, and personal care products.’’ 10 K

Required

a. Comment on the difference between net cash provided by operating activities and net income.

Speculate on which number is likely to be the better indicator of long term profitability.

b. Comment on the data reviewed for each firm.

c. Do any of these firms appear to have a cash flow problem? Comment.

working backward from changes in the buildings and equipment acc 284364

Aug 29, 2021 | Uncategorized

Working backward from changes in the Buildings and Equipment account The comparative balance sheets of American Airlines show a balance in the Buildings and Equipment account at cost year end of $17,369 million: a year earlier, the balance was $16,825 million. The Accumulated Depreciation account shows a balance of $5,465 million at year end and of $4,914 million a year earlier. The statement of cash flows reports that expenditures for buildings and equipment during the year totaled $1,314 million. The income statement indicates a depreciation charge of $1,253 million during the year. The firm sold buildings and equipment during the year at their carrying value calculate the acquisition cost and accumulated depreciation of the buildings and equipment that American sold for cash during the year and the proceeds from the disposition.

bonds that are subject to retirement at a stated dollar amount prior to maturity at 284376

Aug 29, 2021 | Uncategorized

Bonds that are subject to retirement at a stated dollar amount prior to maturity at the option of the issuer are called

early retirement bonds.

debentures.

options.

callable bonds.

Multiple Choice Question 139

Bonds that are issued against the general credit of the borrower are called

debenture bonds.

callable bonds.

term bonds.

		Secured bonds.
Multiple Choice Question151

The contractual interest rate on a bond is often referred to as the:

Callable rate.

stated rate.

the maturity rate.

		market rate.
Multiple Choice Question 154

The interest expense recorded on an interest payment date is increased

only if the market rate of interest is less than the stated rate of interest on that date.

by the amortization of premium on bonds payable.

by the amortization of discount on bonds payable.

only if the bonds were sold at face value.

Multiple Choice Question 157

If the market rate of interest is 10%, a $10,000, 12%, 10 year bond that pays interest annually would sell at an amount

less than face value.

greater than face value.

equal to face value.

that cannot be determined.

Multiple Choice Question 164

Gomez Corporation issues 800, 10 year, 8%, $1,000 bonds dated January 1, 2012, at 96. The journal entry to record the issuance will show a

debit to Cash for $768,000.

credit to Bonds Payable for $768,000.

debit to Cash of $800,000.

credit to Discount on Bonds Payable for $32,000.

Multiple Choice Question 167

The market rate of interest is often called the

coupon rate.

contractual rate.

stated rate.

effective rate.

Multiple Choice Question 170

When bonds are issued at a premium, the total interest cost of the bonds over the life of the bonds is equal to the amount of

interest paid over the life of the bond.

interest paid over the life of the bond plus the amount of premium at sale point.

interest paid over the life of the bond minus the amount of premium at sale point.

premium at sale point.

Multiple Choice Question 175

In the balance sheet, the account Premium on Bonds Payable is

added to bonds payable.

deducted from bonds payable.

classified as a stockholders’ equity account.

classified as a revenue account.

Multiple Choice Question 180

The journal entry to record the issuance of bonds at a discount will include a

debit to Cash for the face amount of the bonds.

debit to Cash for the face amount of the bonds plus the amount of the discount.

debit to Cash for the face amount of the bonds minus the amount of the discount.

redit to Cash for the face amount of the bonds.

c

Multiple Choice Question 181

If bonds have been issued at a discount, then over the life of the bonds the

carrying value of the bonds will increase.

interest expense will increase, if the discount is being amortized on a straight line basis.

carrying value of the bonds will decrease.

unamortized discount will increase.

Multiple Choice Question 190

Hogan Company has $500,000 of bonds outstanding. The unamortized premium is $7,200. If the company redeemed the bonds at 101, what would be the gain or loss on the redemption?

$2,200 loss

$5,000 loss

$5,000 gain

$2,200 gain

Multiple Choice Question 199

Restoration Company issued bonds that had the following data associated with them:

Interest to be paid is $40,000.

Interest expense to be recorded is $45,000.

Which of the following characteristics is true?

After recording the interest expense, the amortization will decrease the bond carrying value.

After recording the interest expense, the amortization will increase the bond carrying value.

The difference between the interest expense and the interest to be paid is the bond’s par value.

The bonds are sold at a premium.

Multiple Choice Question 230

On January 1, Weatherholt Inc. issued $3,000,000, 9% bonds for $2,817,000. The market rate of interest for these bonds is 10%. Interest is payable annually on December 31. Jean Loptein uses the effective interest method of amortizing bond discount. At the end of the first year, Weatherholt should report unamortized bond discount of

$153,000.

$164,700.

$154,830.

$171,300.

Multiple Choice Question 231

On January 1, Thompson Corporation issued $4,000,000, 14%, 5 year bonds with interest payable on December 31. The bonds sold for $4,288,384. The market rate of interest for these bonds was 12%. On the first interest date, using the effective interest method, the debit entry to Bond Interest Expense is for

$480,000.

$514,606.

$560,000.

$502,324.

Multiple Choice Question 233

Warner Company issued $1,600,000 of 6%, 10 year bonds on one of its interest dates for $1,381,920 to yield an effective annual rate of 8%. The effective interest method of amortization is to be used. The journal entry on the first interest payment date, to record the payment of interest and amortization of discount will include a

debit to Bond Interest Expense for $128,000.

credit to Discount on Bonds Payable for $14,554.

debit to Bond Interest Expense for $96,000.

credit to Cash for $110,554.

Multiple Choice Question 234

Warner Company issued $1,600,000 of 6%, 10 year bonds on one of its interest dates for $1,381,920 to yield an effective annual rate of 8%. The effective interest method of amortization is to be used. How much bond interest expense (to the nearest dollar) should be reported on the income statement for the end of the first year?

$96,000

$110,844

$110,554

$110,262

Multiple Choice Question 236

When the effective interest method of amortization is used for a bond premium, the amount of interest expense for an interest period is calculated multiplying the

carrying value of the bonds at the beginning of the period by the effective interest rate.

face value of the bonds at the beginning of the period by the contractual interest rate.

face value of the bonds at the beginning of the period by the effective interest rate.

		carrying value of the bonds at the beginning of the period by the contractual interest rate.
Multiple Choice Question 237

The amortization of a bond premium will result in reporting an amount of interest expense for an interest period that

exceeds the amount of cash to be paid for interest for the period.

equals the amount of cash to be paid for interest for the period.

has no predictable relationship with the amount of cash to be paid for interest for the period.

is less than the amount of cash to be paid for interest for the period.

Attachments:

exam 2 questi….docx

Online EXAM 2….docx

your friend hanna willard recently completed the second year o 284400

Aug 29, 2021 | Uncategorized

Your friend, Hanna Willard, recently completed the second year of her business and just received annual financial statements from her accountant. Willard finds the income statement and balance sheet informative but does not understand the statement of cash flows. She says the first section is especially confusing because it contains a lot of additions and subtractions that do not make sense to her. Willard adds, ?oThe income statement tells me the business is more profitable than last year and that’s most important. If I want to know how cash changes, I can look at comparative balance sheets.??

Required

Write a half page memorandum to your friend explaining the purpose of the statement of cash flows. Speculate as to why the first section is so confusing and how it might be rectified.

zaro company s balance sheets for december 31 2009 and 2008 284408

Aug 29, 2021 | Uncategorized

Zaro Company’s balance sheets for December 31, 2009 and 2008, income statement for the year ended December 31, 2009, and the statement of cash flows for the year ended December 31, 2009, follow:

The president of Zaro Company cannot understand how the company was able to pay cash dividends that were greater than net income and at the same time increase the cash balance. He notes that business was down slightly in 2009.

Required

a. Comment on the statement of cash flows.

b. Compute the following liquidity ratios for 2009:

1. Current ratio

2. Acid test ratio

3. Operating cash flow/current maturities of long term debt and current notes payable

4. Cash ratio

c. Compute the following debt ratios for 2009:

1. Times interest earned

2. Debt ratio

d. Compute the following profitability ratios for 2009:

1. Return on assets (using average assets)

2. Return on common equity (using average common equity)

e. Give your opinion as to the liquidity of Zaro.

f. Give your opinion as to the debt position of Zaro.

g. Give your opinion as to the profitability of Zaro.

h. Explain to the president how Zaro was able to pay cash dividends that were greater than net income and at the same time increase the cash balance.

osee i told you things would work out said barry 284411

Aug 29, 2021 | Uncategorized

?oSee, I told you things would work out,?? said Barry Kresmier, president of Lomax Company. ?oWe expanded sales from $1.6 million to $2.0 million in 2009, nearly doubled our warehouse space, and ended the year with more cash in the bank than we started with. A few more years of expansion like this and we’ll be the industry leaders.?? ?oYes, I’ll admit our statements look pretty good,?? replied Sheri Colson, the company’s vice president. ?oBut we’re doing business with a lot of companies we don’t know much about and that worries me. I’ll admit, though, that we’re certainly moving a lot of merchandise; our inventory is actually down from last year.?? A comparative balance sheet for Lomax Company containing data for the last two years follows:

The following additional information is available about the company’s activities during 2009:

Cash dividends declared and paid to the common stockholders totaled $75,000.

Long term notes with a value of $380,000 were repaid during the year.

Equipment was sold during the year for $70,000. The equipment had cost $130,000 and had $40,000 in accumulated depreciation on the date of sale.

Long term investments were sold during the year for $1 10,000. These investments had cost $50,000 when purchased several years ago.

The company’s income statement for 2009 follows:

Required:

Prepare a worksheet like Exhibit 15—9 for Lomax Company.

Using the indirect method, prepare a statement of cash flows for the year 2009.

What problems relating to the company’s activities are revealed by the statement of cash flows that you haveprepared?

compute the allocation rate that was used for the manufacturing overhead 284415

Aug 29, 2021 | Uncategorized

Compute the allocation rate that was used for the manufacturing overhead in Exhibits 2 and 3. Show your computations in enough detail and with enough organization to make them easy to follow. Exhibit 2

Exhibit 3

Question 2 (8 points) Using the rates from Question 1, show the computations that were used for allocating manufacturing overhead in Exhibit 2 and Exhibit 3. Show your computations in enough detail and with enough organization to make them easy to follow.
Machine made Hand made Exhibit 2

Exhibit 3

Question 3. (10 points) Assuming that all manufacturing overhead is fixed and all units produced are sold, calculate the breakeven (in units and $) for machine made and hand made shoes
based on Exhibit 2? Is this information useful for decision making (one sentence only)?

Machine made shoes: Breakeven units:

Breakeven $:

Hand made shoes: Breakeven units:

Breakeven $:

Question 4. (10 points) Using the same logic, calculate the breakeven (in units and $) for machine made and hand made shoes
based on Exhibit 3? Is this information useful for decision making?

Machine made shoes: Breakeven units:

Breakeven $:

Hand made shoes: Breakeven units:

Breakeven $:

Question 5. (11 points) Using the same logic, calculate the breakeven (in units and $) for Bally, Inc.
based on Exhibit 2? Is this information useful for decision making?

Breakeven units:

Breakeven $:

Question 6. (15 points) use the information in Exhibit 1 to identify the cost drivers and compute manufacturing overhead rates for the machine maintenance, machine set up labor, and material handling. MOH Item Total Cost Cost Driver MOH Rate

Machine maintenance

Machine set up labor

Material handling

Question 7. (20 points) Use the overhead rates you computed in Question 6 to calculate the cost of goods manufactured for a pair of machine made shoes and a pair of hand made shoes, and compute the margin percentages for each. Explain your computations for MOH.

Attachments:

ACCT 331 exam….doc

1 would registration with the sec be required for dakota 284420

Aug 29, 2021 | Uncategorized

1. Would registration with the SEC be required for Dakota Gasworks securities? Why or why not?

2. Did Emerson violate Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b 5? Why or why not?

3. What theory or theories might a court use to hold Wallace liable for insider trading?

4. Under the Sarbanes Oxley Act of 2002, who would be required to certify the accuracy of financial statements filed with the SEC?

Dale Emerson served as the chief financial officer for Reliant Electric Company, a distributor of electricity serving portions of Montana and North Dakota. Reliant was in the final stages of planning a takeover of Dakota Gasworks, Inc., a natural gas distributor that operated solely within North Dakota. Emerson went on a weekend fishing trip with his uncle, Ernest Wallace. Emerson mentioned to Wallace that he had been putting in a lot of extra hours at the office planning a takeover of Dakota Gasworks. When he returned from the fishing trip, Wallace purchased $20,000 worth of Reliant stock. Three weeks later, Reliant made a tender offer to Dakota Gasworks stockholders and purchased 57 percent of Dakota Gasworks stock. Over the next two weeks, the price of Reliant stock rose 72 percent before leveling out. Wallace then sold his Reliant stock for a gross profit of $14,400. Using the information presented in the chapter, answer the following questions.

help please 448577

Aug 29, 2021 | Uncategorized

7. Blackwell Industries received a 120 day, 9% note for $180,000, dated August 10 from a customer on account.

Required:

1.

Determine the due date of the note.

2.

Determine the maturity value of the note.

3.

Journalize the entry to record the receipt of the payment of the note at maturity.

8.Determine the due date and amount of interest due at maturity on the following notes:

	Origination	Face	Term	Interest	Maturity	Interest
	Date	Amount	of Note	Rate	Date	Amount
(a)	Mar 15	$8,000	60 days	9%	_______	_______
(b)	May 1	$12,000	90 days	8%	_______	_______

need help 448579

Aug 29, 2021 | Uncategorized

8.Journalize the following transactions in the accounts of Simmons Company:
Mar 1 Received a $60,000, 60 day, 6% note dated March 1 from Bynum Company on account.
Mar 18 Received a $25,000, 60 day, 9% note dated March 18 from Solo Company on account.
Apr. 30 The note dated March 1 from Bynum Company is dishonored, and the customer%u2019s account is charged for the note, including interest.
May 17 The note dated March 18 from Solo Company is dishonored, and the customer%u2019s account is charged for the note, including interest.
July 29 Cash is received for the amount due on the dishonored note dated March 1 plus interest for 90 days at 8% on the total amount debited to Bynum Company on April 30.
Aug. 23 Wrote off against the allowance account the amount charged to Sol Company on May 17 for the dishonored note dated March 18.

9.Journalize the following transactions of Upton Drugs:

July 8	Received a $180,000, 90 day 8% note dated July 8 from Miracle Chemical on account.

Oct. 6	The note is dishonored by Miracle Chemical.

Nov. 5	Received the amount due on the dishonored note plus interest for 30 days at 10% on the total amount charged to Miracle Chemical on Oct. 6.

accounting help 448465

Aug 29, 2021 | Uncategorized

1.) Department S had no work in process at the beginning of the period. 11,289 units of direct materials were added during the period at a cost of $79,023. 8,467 units were completed during the period, and 2,822 units were 27% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. Direct labor was $52,402 and factory overhead was $9,108.

What were the total conversion costs for the period?

2.)Department G had 3,200 units, one third completed at the beginning of the period, 13,893 units were completed during the period, 1,703 units were one fifth completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period:

Work in process, beginning of period	$25,681
Costs added during period:
Direct materials	$117,315
Direct labor	$78,210
Factory overhead	$26,070

Assuming that all direct materials are placed in process at the beginning of production and that the first in, first out method of inventory costing is used, what is the total cost of the departmental work in process inventory at the end of the period?

3.)The following production data were taken from the records of the Finishing Department for June:

Inventory in process, 6 1,
1/3 completed	435 units
Transferred to finished goods
during June	4,730 units
Equivalent units of production
during June	5,131 units

Determine the number of equivalent units of production in the June 30 Finishing Department inventory, assuming that the first in, first out method is used to cost inventories.

help please 448470

Aug 29, 2021 | Uncategorized

1) ellen donoghue cosmetics ended the month of march with inventory of with inventory of $23,000. They expect to end April with inventory of $14,000 after selling goods with a cost of $98,000. How much inventory must they purchase during April to accomplish these results?

A. $107,000

B. $112,000

C. $89,000

D. $135,000

2)The income statement for Motorolla shows gross profit of $154,000, operating Expenses of $124,000, COGS of $213,000. Find Net Sales Revenue ?

A. $337,000

B. $278,000

C. $367,000

D. $491,000

3) In a period of rising prices,

A. Gross profit under FIFO will be higher than under LIFO

B. COGS under LIFO will be less than under FIFO

C. Net income under LIFO will be higher than under FIFO

D. LIFO inventory will be greater than FIFO inventory.

4)When does the cost of inventory become an expense:

A. When the payment is made to the supplier

B. When inventory is delivered to a customer

C. When cash is collected from the customer

D. When inventory is purchased from the supplier

help please 448471

Aug 29, 2021 | Uncategorized

1.At the end of the current year, Accounts Receivable has a balance of $675,000; Allowance for Doubtful Accounts has a debit balance of $5,400; and net sales for the year total $3,000,000. An analysis of receivables indicates the uncollectible receivables are estimated to be $45,000.

Determine (a) the amount of the adjusting entry for bad debt expense; (b) the adjusted balances of Accounts Receivable, Allowance of Doubtful Accounts; and Bad Debt Expense; and (c) the net realizable value of accounts receivable.

2.At the end of the current year, Accounts Receivable has a balance of $550,000; Allowance for Doubtful Accounts has a credit balance of $5,500; and net sales for the year total $2,500,000. An analysis of receivables estimates uncollectible receivables as $25,000.

Determine (a) the amount of the adjusting entry for bad debt expense; (b) the adjusted balances of Accounts Receivable, Allowance of Doubtful Accounts; and Bad Debt Expense; and (c) the net realizable value of accounts receivable.

give me step by step solutions with formulas answers are already provided no points 448477

Aug 29, 2021 | Uncategorized

1. The following information was taken from the annual manufacturing overhead cost budget of Coen Company.

Variable manufacturing overhead costs $69,300

Fixed manufacturing overhead costs $41,580

Normal production level in labor hours 23,100

Normal production level in units 5,775

Standard labor hours per unit 4

During the year, 5,600 units were produced, 18,340 hours were worked, and the actual manufacturing overhead was $113,400. Actual fixed manufacturing overhead costs equaled budgeted fixed manufacturing overhead costs. Overhead is applied on the basis of direct labor hours. Coen’s total overhead variance is

c. $5,880 U.

2. The following information was taken from the annual manufacturing overhead cost budget of Coen Company.

Variable manufacturing overhead costs $69,300

Fixed manufacturing overhead costs $41,580

Normal production level in labor hours 23,100

Normal production level in units 5,775

Standard labor hours per unit 4

During the year, 5,600 units were produced, 18,340 hours were worked, and the actual manufacturing overhead was $113,400. Actual fixed manufacturing overhead costs equaled budgeted fixed manufacturing overhead costs. Overhead is applied on the basis of direct labor hours. Coen’s controllable overhead variance is

b. $4,620 U.

3. The following information was taken from the annual manufacturing overhead cost budget of Coen Company.

Variable manufacturing overhead costs $69,300

Fixed manufacturing overhead costs $41,580

Normal production level in labor hours 23,100

Normal production level in units 5,775

Standard labor hours per unit 4

During the year, 5,600 units were produced, 18,340 hours were worked, and the actual manufacturing overhead was $113,400. Actual fixed manufacturing overhead costs equaled budgeted fixed manufacturing overhead costs. Overhead is applied on the basis of direct labor hours. Coen’s volume overhead variance is

a. $1,260 U.

4. Sonic Corporation%u2019s variance report for the purchasing department reports 500 units of material A purchased and 1,200 units of material B purchased. It also reports standard prices of $2 for Material A and $3 for Material B. Actual prices reported are $2.10 for Material A and $2.80 for Material B. Sonic should report a total price variance of

c. $20 U.

accounting homework help 448478

Aug 29, 2021 | Uncategorized

1. Garland and Driscoe have decided to form a partnership. They have agreed that Garland is to invest $200,000 and that Driscoe is to invest $100,000. Garland is to devote one half time to the business and Driscoe is to devote full time. The following plans for the division of income are being considered:

a. Equal division.

b. In the ratio of original investments.

c. In the ratio of time devoted to the business.

d. Interest of 12% on original investments and the remainder equally.

e. Interest of 12% on original investments, salary allowances of $30,000 to Garland and $60,000 to Driscoe, and the remainder equally.

f. Plan (e), except that Driscoe is also to be allowed a bonus equal to 20% of the amount by which net income exceeds the salary allowances.

For each plan, determine the division of the net income under each of the following assumptions: (1) net income of $90,000 and (2) net income of $240,000. Present the data in tabular form, using the following columnar headings:

$90,000 $240,000

Plan Garland Driscoe Garland Driscoe

tribal balances and t accounts question 448481

Aug 29, 2021 | Uncategorized

1. General Journal to make t account and tribal balances

1. make a t account

2. Make a tribal balance

Account Name	DR	CR
Cash
Accounts Receivable
Sewing Supplies
Sewing Equipment
Accounts Payable
Unearned Revenue
Common Stock
Dividends
Sewing Revenue
Rent Expense
Wages Expense
Utilities Expense	%u3000	%u3000

depreciation 448502

Aug 29, 2021 | Uncategorized

1. A plant asset purchased for $250,000 has an estimated life of 10 years and a residual value of $20,000. Depreciation for the second year of use, determined by the declining balance method at twice the straight line rate is . 2. A plant asset purchased for $300,000 at the beginning of the year has an estimated life of 5 years and a residual value of $30,000. Depreciation for the second year, determined by the sum of the years’ digits method is . 3. A plant asset with a cost of $320,000 and accumulated depreciation of $90,000, is given together with cash of $120,000 in exchange for a similar asset worth $330,000. The gain or loss recognized on the disposal (indicate by “G” or “L”) is . 4. A plant asset with a cost of $270,000, estimated life of 5 years, and residual value of $45,000, is depreciated by the straight line method. This asset is sold for $200,000 at the end of the second year of use. The gain or loss on the disposal (indicate by “G” or “L”) is . Please include all the calculations.

cost accounting help 448512

Aug 29, 2021 | Uncategorized

1.) State University Business School (SUBS) offers several degrees, including Bachelor of Business Administration (BBA). The new dean believes in using cost accounting information to make decisions and is reviewing a staff developed income statement broken down by the degree offered. The dean is considering closing down the BBA program because the analysis, which follows, shows a loss. Tuition increases are not possible. The dean has asked for your advice. If the BBA degree program is dropped, school administration costs are not expected to change, but direct costs of the program, such as operating costs, building maintenance, and classroom costs, would be saved. There will be no other changes in the operations or costs of other programs.

STATE UNIVERSITY BUSINESS SCHOOL, BBA DEGREE Degree Income Statement For the Academic Year Ending June 30
Revenue	$	330,000
Costs
Advertising%u2014BBA program		23,000
Faculty salaries		150,000
Degree operating costs (part time staff)		24,500
Building maintenance		27,000
Classroom costs (building depreciation)		55,000
Allocated school administration costs		59,000

Total costs	$	338,500

Net loss	$	(8,500)

Requirement 1:

What revenues and costs are probably differential for the decision to drop the BBA program?

STATE UNIVERSITY BUSINESS SCHOOL, BBA DEGREE Degree Income Statement Differential Revenues and Costs For the Academic Year Ending June 30
Revenue	$	(Click to select) Differential Not differential
Costs
Advertising%u2014BBA program		(Click to select) Not differential Differential
Faculty salaries		(Click to select) Not differential Differential
Degree operating costs		(Click to select) Not differential Differential
Building maintenance		(Click to select) Differential Not differential
Classroom costs		(Click to select) Differential Not differential
Allocated school administration costs		(Click to select) Not differential Differential

Total costs	$

(Click to select) Net differential gain from store Net differential loss from store	$

Requirement 2:

What will be the net effect on the SUBS contribution (profit) if the BBA program is dropped? (Omit the “$” sign in your response.)

Net income will be (Click to select) lower higher by $

2.) Pine Ridge Cabinets (PRC) produces cabinets for new home builders. You have been called in to settle a dispute between PRC and Eastern Homes, a builder of custom homes.

Eastern Homes buys 10,000 units of a particular cabinet from PRC every year. It insists that PRC keep a one month inventory to accommodate fluctuations in Eastern%u2019s demand. PRC does not want to keep any inventory and says that Eastern Homes should buy components in advance and store them.

You determine that the inventory storage costs per unit are $100 at PRC and $200 at Eastern Homes.

Required:

How do you suggest the two companies settle their dispute?

To minimize costs in the supply chain, Pine Ridge Cabinets (PRC) should carry the inventory and the two firms could share the inventory savings through price discounts or other contractual agreements.

Pine Ridge Cabinets (PRC) should carry the inventory, but Eastern Homes should cover all the inventory carrying costs.

There is no need for Pine Ridge Cabinets (PRC) to carry the inventory. Eastern Homes should buy in advance.

3.) Assume that Carmen’s Cookies is preparing a budget for the month ending June 30. Management prepares the budget by starting with the actual results for April 30. Next, management considers what the differences in costs will be between April and June.

Management expects the number of cookies sold to be 10 percent greater in June than in April, and it expects all food costs (e.g., flour, eggs) to be 10 percent higher in June than in April. Management expects “other” labor costs to be 15 percent higher in June than in April, partly because more labor will be required in June and partly because employees will get a pay raise. The manager will get a pay raise that will increase the salary from $3,300 in April to $3,800 in June. Rent and utilities are not expected to change.

Required:

Prepare a budget for Carmen’s Cookies for June. (Omit the “$” sign in your response.)

CARMEN’S COOKIES Retail Responsibility Center Budgeted Costs For the Month Ending June 30
	Actual (April)		Budget (June)
Food
Flour	$	2,800	$
Eggs		5,500
Chocolate		1,900
Nuts		2,500
Other		2,100

Total food	$	14,800	$

Labor
Manager	$	3,300	$
Other		1,400

Total labor	$	4,700	$
Utilities		1,900
Rent		5,300

Total cookie costs	$	26,700	$

Number of cookies sold		38,000

managerial accounting 448514

Aug 29, 2021 | Uncategorized

1.A time interest earned ratio of 0.90 to 1 means:

A. The time the firm will default on its interest payment.

B. That net income is less than the interest expense.

C. That the cash flow is less than the net income

D. That the cash floe exceed the net income

E. None of the answer are correct.

2. Statements in which all items are expressed only in relative terms (percentages on base) are termed;

A. Vertical Statement

B. Horizontal statement

C. Funds Statements

D. Common sized statements

E. None of the answer are correct

3. A manufacturing firm would begin preparation of its master budget by constructing a:

A. Sales budget

B. Product budget

C. Cash Budget

D. Capital Budget

E. Set of pro forma financial statements.

4. For a company that uses responsibility center accounting, which of the following costs is least likely to appear on a performance report of an assembly line supervisor.

A. Direct material used

B. Departmental Supplies

C. Assembly line labor

D. Repairs and maintenance

E. Assembly line facilities depreciation

5. which of the folling methods ignores the fact thar some service department provide service to other service department;

a. Direct Method

B. Indirect method

C. Step down method

D. Reciprocal method

E. Dual cost allocation method

6.A division’s return on investment may be improved by increasing:

A. Cost of goods sold

B. Sales margin and cost of capital

C. Sales revenue and cost of capital

D. Capital turnover or sale margin

E. Capital turnover or cost of capital

7.Which of the following ratios would generally be used to evaluate a firms overall liquidity position

A. Working Capital

B. Current Ratio

C. Acid test ratio

D. Cash ratio

E. Inventory turnover in days.

8.Flexiable budgets reflect a comapny’s anticipated costs based on variations in;

A. Activity levels

B. Inflation rates

C. managers

D. anticipated capital acquistions

E. standards

9.When the quantity of material purchased is not equal to the quantity of material used, most companies base the calculation of the material quantity variance on the :

A. quantity of direct material purchased

B. Quantity of direct material spoiled

C. quantity of direct material that should have been used in acheiving actual production

D quantity of direct material actual used.

1

10. Which of the following costs should be ignored choosing among alternatives?

A. Opportunity costs

B. Sunk costs

C. Out of pocket costs

D. Differential costs

E. None of these.

11. Which of the foll should have the strongest casue and effect relationship with overhead cost;

A. Cost followers

B. Non value added cost

C. Cost drivers

D. Value added cost

E. Unit of output

12. Equivalent unit calculation are necessary to allocate manaufacturing cost between:

A. Units completed and ending work in process

B.Beginning work in process and units completed

C. Unit sold and eding work in process

D. Cost of goods manufactured and beginnining work in process

E. Cost of goods manufactured and cost of goods sold.

calculate and explain direct material and direct labor variances accounting 448519

Aug 29, 2021 | Uncategorized

11 57B Calculate and explain direct material and direct labor variances

Royal Fabric manufacturers a specialty monogrammed blanket. To follow are the cost and labor standards for this blanket:
Direct material (fabric): 2.5 yards per blanket at $10.00 per yard
Direct labor: 0.5 direct labor hours per blanket at $14.00 per hours

Actual results from last month%u2019s production of 2,000 blankets follows:
Actual cost of 4,100 yards of direct material (fabric) purchased: $39,360
Actual yards of direct material (fabric) used: 3,900
Actual wages for 1,100 direct labor hours worked: $10,800

Requirements
1. What is the standard direct material cost for one blanket?
2. What is the actually cost per yard of fabric purchased?
3. Calculate the direct material price and quantity variances.
4. What is the standard direct labor cost for one blanket?
5. What is the actual direct labor cost per hour?
6. Calculate the direct labor rate and efficiency variances.
7. Analyze each variance and speculate as to what may have caused that variance.
8. Look at all four variances together (the big picture). How might they all be related? What variance is very likely to have caused the other variances?

accounting problem 448521

Aug 29, 2021 | Uncategorized

11. Puff Adder Corp. had the following situations during the last four years of operation:
a. The Allowance for Uncollectible Accounts has a $1,700 credit balance prior to adjustment. Net credit sales during 2006 are $600,000 and 3% are estimated to be uncollectible. Accounts Receivable has a balance of $110,000 on Dec 31, 2006.

b. The Allowance for Uncollectible Accounts has a $900 debit balance prior to adjustment. Based on an aging schedule of accounts receivable prepared on December 31, 2007, $17,900 of accounts receivable are estimated to be uncollectible. Accounts Receivable has a balance of $104,000 on Dec 31, 2007.

c. The Allowance for Uncollectible Accounts has a $1,100 credit balance prior to adjustment. Based on an aging schedule of accounts receivable prepared on December 31, 2008, $20,000 of accounts receivable are estimated to be uncollectible. Accounts Receivable has a balance of $87,000 on Dec 31, 2008.

d. The Allowance for Uncollectible Accounts has a $500 debit balance prior to adjustment. Net credit sales during 2009 are $900,000 and 2% are estimated to be uncollectible. Accounts Receivable has a balance of $125,000 on Dec 31, 2009.

Prepare the adjusting journal entries needed for these years.

help please guys 448529

Aug 29, 2021 | Uncategorized

16. On July 1st, Harding Construction purchases a bulldozer for $228,000. The equipment has a 8 year life with a residual value of $16,000. Harding uses straight line depreciation.

(a) Calculate the depreciation expense and provide the journal entry for the first year ending December 31st.

(b) Calculate the third year%u2019s depreciation expense and provide the journal entry for the third year ending December 31st.

(c) Calculate the last year%u2019s depreciation expense and provide the journal entry for the last year.

17.

On July 1st, Hartford Construction purchases a bulldozer for $228,000. The equipment has a 9 year life with a residual value of $16,000. Hartford uses units of production method depreciation and the bulldozer is expected to yield 26,500 operating hours.

(a) Calculate the depreciation expense per hour of operation.

(b) The bulldozer is operated 1,250 hours in the first year, 2,755 hours in the second year, and 1,225 hours in the third year of operations. Journalize the depreciation expense for each year.

18. On June 1, 2014, Aaron Company purchased equipment at a cost of $120,000 that has a depreciable cost of $90,000 and an estimated useful life of 3 years and 30,000 hours.

Using straight line depreciation, prepare the journal entry to record depreciation expense for (a) the first year, (b) the second year and (c) the last year.

need help pleeeease 448530

Aug 29, 2021 | Uncategorized

16. Lone Star Company received a 90 day, 6% note for $80,000, dated March 12 from a customer on account. (Assume a 360 day year when calculating interest.)

a.	Determine the due date of the note.
b.	Determine the maturity value of the note.
c.	Journalize the entry to record the receipt of the payment of the note at maturity.

17. Mr. Potts issued a 90 day, 7% note for $200,000, dated February 3rd to Valley Co. on account. (Assume a 360 day year when calculating interest.)
a. Determine the due date of the note.
b. Determine the interest.
c. Determine the maturity value of the note.
d. Journalize the entry to record the issuance of the note by Potts on Feb. 3.
e. Journalize the entry to record the receipt of payment of the note at maturity by Valley Co.

help please 448531

Aug 29, 2021 | Uncategorized

18. On June 1, 2014, Aaron Company purchased equipment at a cost of $120,000 that has a depreciable cost of $90,000 and an estimated useful life of 3 years and 30,000 hours.

Using straight line depreciation, prepare the journal entry to record depreciation expense for (a) the first year, (b) the second year and (c) the last year.

19.

Williams Company acquired machinery on July 1, 2009, at a cost of $130,000. The estimated useful life of the machinery was 10 years and the estimated residual value was $10,000. Williams uses the double declining balance method of depreciation. On October 1, 2012, Williams sold the equipment for $75,000.

1) Record the journal entry for the depreciation on this machinery for 2012.

2) Record the journal entry for the sale of the machinery.

20.

XYZ Co. incurred the following costs related to the office building used in operating its sports supply company:

a.	Replaced a broken window.
b.	Replaced the roof that had been on the building 23 years.
c.	Serviced all the air conditioners before summer started.
d.	Replaced the air conditioners with refrigerated air conditioners in the customer service areas.
e.	Added a warehouse to the back of the building.
f.	Repainted the interior walls.
g.	Installed window shutters on all windows.

Classify each of the costs as a capital expenditure or a revenue expenditure. For those costs identified as capital expenditures, classify each as an additional or replacement component.

variables and fixed equations help 448534

Aug 29, 2021 | Uncategorized

1.Ben Company produces a single product. Last year, the company’s net operating income under absorption costing was $4,400 lower than under variable costing. The company sold 8,000 units during the year, and its variable costs were $8 per unit, of which $3 was variable selling expense. Fixed manufacturing overhead was $1 per unit in beginning inventory under absorption costing. How many units did the company produce during the year?

2. Last year, Wardrup Corporation’s variable costing net operating income was $67,200. Fixed manufacturing overhead costs released from inventory under absorption costing amounted to $600. What was the absorption costing net operating income last year?

4.Abdol Company, which has only one product, has provided the following data concerning its most recent month of operations:

Selling Price :$86

Units in beginning Inventory: $0

Units Produced:$6600

Units sold:$6500

Units in ending Inventory:$100

Variable Costs Per Unit:

Direct Materials:$22

Direct Labor:$12

Variable Manufactoring Overhead:$4

Variable Selling and Administrative:$6

Fixed Costs:

Fixed manufactoring Overhead:$231,000

Fixed Selling and administrative:$32,500

What is the unit product cost for the month under variable costing?

What is the unit product cost for the month under absorption costing?

What is the net operating income for the month under variable costing?

3. Dearman Company, which has only one product, has provided the following data concerning its most recent month of operations: What is the total period cost for the month under the absorption costing approach?

Selling price	$165.00

Units in beginning inventory	0
Units produced	3,300
Units sold	2,710
Units in ending inventory	590

Variable costs per unit:
Direct materials	$47.50
Direct labor	$57.60
Variable manufacturing overhead	$4.50
Variable selling and administrative	$11.30

Fixed costs:
Fixed manufacturing overhead	$66,990
Fixed selling and administrative	$34959

accounting 448535

Aug 29, 2021 | Uncategorized

2 43 Joe%u2019s Pub, Cost Volume Profit Analysis in a Small Business Joe Bell recently opened Joe%u2019s Pub in the University District. Because of licensing restrictions, the only liquor he can sell is beer. The average price of beer at Joe%u2019s Pub is $ 3.00 per glass, and each glass costs Joe an average of $ 2.20. Joe has hired a bartender and waiter at $ 3,000 and $ 2,000 per month, respectively. His rent, utilities, and other fixed operating costs are $ 5,000 per month.

Joe is considering selling hamburgers during the lunch hour. He feels that this will increase his daytime business, which is currently quite small. It will also allow him to be more competitive with other local bars that offer a wider variety of food and drinks.

Joe would like to sell the hamburgers for $ 1.25 each in order to be attractive to customers. Joe will buy buns for $ 1.20 a dozen and ground beef for $ 2.80 per pound. Each pound of ground beef will make seven hamburgers. Other ingredients will cost an average of $. 20 per hamburger. Joe will also need to hire a part time cook at $ 1,200 per month. Other additional fixed costs will run about $ 360 a month.

1. If Joe sells only beer, how many glasses of beer does he have to sell each month to make a monthly profit of $ 2,000?

2. If Joe sells only beer, how many glasses of beer does he have to sell each month to make a monthly profit of 5% of sales?

3. Suppose Joe decides to add hamburgers to his menu. How many hamburgers does he need to sell to break even on the hamburgers? Assume that there is no effect on beer sales.

4. The main reason Joe wanted to add hamburgers was to attract more customers. Suppose that 2,000 extra customers per month came for lunch because of the availability of hamburgers and that each bought an average of 1.5 beers. Compute the added profit ( or loss) generated by these extra customers.

5. Joe was not sure how many new customers would be attracted by the hamburgers. Give Joe some advice about how many new customers would be needed to just break even on the new business if each new customer bought one hamburger and one beer. Include an assessment of the consequences of volume falling below or above this break even point.

6. Joe could offer a higher quality hamburger if he spends 50% more on the ingredients. He could then charge $ 2.00 for them. Explain how Joe could determine whether the higher quality ham burgers would be more profitable than the regular hamburgers.

accounting 448537

Aug 29, 2021 | Uncategorized

2 60 Sales Mix Analysis Study Appendix 2A. The Rocky Mountain Catering Company specializes in preparing Mexican dinners that it freezes and ships to restaurants in the Denver area. When a diner orders an item, the restaurant heats and serves it. The budget data for 20X5 are

Product

Chicken Tacos Beef Enchiladas

Selling price to restaurants $ 5 $ 7

Variable expenses 3 4

Contribution margin $ 2 $ 3

Number of units 250,000 125,000

The company prepares the items in the same kitchens, delivers them in the same trucks, and so forth. Therefore, decisions about the individual products do not affect the fixed costs of $ 735,000.

1. Compute the planned net income for 20X5.

2. Compute the break even point in units, assuming that the company maintains its planned sales mix. 3. Compute the break even point in units if the company sells only tacos and if it sells only enchiladas.

4. Suppose the company sells 78,750 units of enchiladas and 236,250 units of tacos, for a total of 315,000 units. Compute the net income. Compute the new break even point with this new sales mix. What is the major lesson of this problem?

help please 448540

Aug 29, 2021 | Uncategorized

2.

Beginning inventory, purchases and sales data for hammers are as follows:

Mar 3	Inventory	12 units	@	$15
11	Purchase	13 units	@	$17
14	Sale	18 units
21	Purchase	9 units	@	$20
25	Sale	10 units

Assuming the business maintains a perpetual inventory system, complete the inventory cards and calculate the cost of merchandise sold and ending inventory under the following assumptions:

a. First in, first out

	Purchases			Cost of Merchandise Sold			Inventory
Date	Qty	Unit Cost	Total Cost	Qty	Unit Cost	Total Cost	Qty	Unit Cost	Total Cost
Mar 3
Mar 11
Mar 14
Mar 21
Mar 25
Balances

b. Last in, first out

	Purchases			Cost of Merchandise Sold			Inventory
Date	Qty	Unit Cost	Total Cost	Qty	Unit Cost	Total Cost	Qty	Unit Cost	Total Cost
Mar 3
Mar 11
Mar 14
Mar 21
Mar 25
Balances

chapter 3 lo 1 448548

Aug 29, 2021 | Uncategorized

For 2010, Omaha Mechanical has a monthly overhead cost formula of $42,900 + $6 per direct labor hour. The firm’s 2010 expected annual capacity is 78,000 direct labor hours, to be incurred evenly each month. Making one unit of the company’s product requires 1.5 direct labor hours.

a. Determine the total overhead to be applied per unit of product in 2010. Round your answer to the nearest cent.

b. Prepare the journal entry to record the incurrence of $128,550 of actual overhead in January 2010.

Prepare the journal entry to record the application of overhead to Work in Process Inventory in January 2010, when 6,390 direct labor hours were worked.

c. Given the actual direct labor hours in part (b), how many units would you have expected to be produced in January?

Also, to start off, if your answer is not $18.90 for part a, do not answer this question. Every lookup I have received has given the wrong answer to this question.

(42,900*12)= $514,800

($6 * 78000)= $468,000

468,000+514,000 =982000

982000/ (78000/1.5) = approx. $18.90

If this is not your answer to a, please do not answer! I have read countless answers where something different was given.

intermediate accounting 1 448554

Aug 29, 2021 | Uncategorized

2.Alpaca Corporation had revenues of $295,000 in its first year of operations. The company has not collected on $19,800 of its sales and still owes $27,900 on $95,500 of merchandise it purchased. The company had no inventory on hand at the end of the year. The company paid $13,600 in salaries. Owners invested $18,500 in the business and $18,500 was borrowed on a five year note. The company paid $4,600 in interest that was the amount owed for the year, and paid $8,600 for a two year insurance policy on the first day of business. Alpaca has an effective income tax rate of 8%.
Compute the cash balance at the end of the first year for Alpaca Corporation.

A. $203,640

B. $215,640

C. $183,640

D. $194,640

3.

Listed below are several transactions that took place during the first two years of operations for the law firm of Pete, Pete, and Roy.

	Year 1		Year 2
Amounts billed to customers for services rendered	$	180,000	$	230,000
Cash collected from customers		155,000		185,000
Cash disbursements:
Salaries paid to employees for services rendered during the year		85,000		95,000
Utilities		27,500		35,000
Purchase of insurance policy		58,500		0

In addition, you learn that the company incurred utility costs of $32,500 in year 1, that there were no liabilities at the end of year 2, no anticipated bad debts on receivables, and that the insurance policy covers a three year period.

Required:
1.	Calculate the net operating cash flow for years 1 and 2. (Net cash outflows should be indicated by a minus sign.)

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Net Operating Cash flow

2.

Prepare an income statement for each year according to the accrual accounting model.

Income Statements:

Year 1 Year 2

Revenues

Expenses:

Salaries

Utilities

Insurance

Net Income (loss)

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ixtte:”8″_p,”5″_rc0l_el_ce0blta0_:”8″p3″_},t”ef”l”:68_p,”15″:39_p,”seal:f4″p7″_e,lsfa”:49_p,”seal:f0″p1″_e,lsfa”:44_p,”seal:f3″p4″_”,5)25,%2055%2025,25b(rg:”9″_p,”)”34,%2034,%2034b(rg:”5″p1″_”,ONTIESQU:”6″p7″_:{5″p5″_},e}lsfa”:p1″_:{5″p5″_”,NGRIST:”3″p7″_:{9″p2″_},”}:”9″p7″_”,esrilaSa:”5″p7″_:{0″p3″_:{2″_p{“”:20_p{“,[}]”}:”7″_p,”4″_rc2l_el_ce0blta0_:”8″p3″_},t”ef”l”:68_p,”:09″p3″_e,lsfa”:74_p,”seal:f9″p4″_e,lsfa”:10_p,”seal:f4″p4″_e,lsfa”:43_p,”)”55%2025,25,%2055(2gb”r”:p9″_”,4)%2034,%2034,(3gb”r”:15_p,”N”IOSTUE”Q”:76_p{“”:55_p,”}}seal:f1″_p{“”:55_p,”G”INTR”S”:73_p{“”:29_p,”}}”””:79_p,””””:75_p{“”:30_p{“”:p2″_:{0″p2″_,{}}”””:p7″_”,r41__cllce0_leab_t”0″:38_p,””}ftle:”8″p6″_0,”:39_p,”seal:f4″p7″_e,lsfa”:49_p,”seal:f0″p1″_e,lsfa”:44_p,”seal:f3″p4″_”,5)25,%2055%2025,25b(rg:”9″_p,”)”34,%2034,%2034b(rg:”5″p1″_”,ONTIESQU:”6″p7″_:{5″p5″_},e}lsfa”:p1″_:{5″p5″_”,NGRIST:”3″p7″_:{9″p2″_},”}:”9″p7″_”,:”5″p7″_:{0″p3″_:{2″_p{“”:20_p{“},”}:”7″_p,”4″_rc0l_el_ce0blta0_:”8″p3″_},t”ef”l”:68_p,”:09″p3″_e,lsfa”:74_p,”seal:f9″p4″_e,lsfa”:10_p,”seal:f4″p4″_e,lsfa”:43_p,”)”55%2025,25,%2055(2gb”r”:p9″_”,4)%2034,%2034,(3gb”r”:15_p,”N”IOSTUE”Q”:76_p{“”:55_p,”}}seal:f1″_p{“”:55_p,”G”INTR”S”:73_p{“”:29_p,”}}”””:79_p,”:”esnspeEx:”5″p7″_:{0″p3″_:{2″_p{“”:20_p{“,[}]”}seonsprer%20beumeNylst:”7″_p,”3″_rc2l_el_ce0blta0_:”8″p3″_},t”ghri:”8″p6″_0,”:39_p,”seal:f4″p7″_e,lsfa”:49_p,”seal:f0″p1″_e,lsfa”:44_p,”uetr”:43_p,”)”55%2025,25,%2055(2gb”r”:p9″_”,4)%2034,%2034,(3gb”r”:15_p,”N”IOUTOL”S”:76_p{“”:55_p,”}}%24″:”1″p8″_e,ru:t3″p6″_:{5″p5″_”,CYENRRCU:”3″p7″_:{9″p2″_},”}:”9″p7″_”,)~(2~z:”5″p7″_:{6″p5″_:{2″_p{“”:20_p{“},”}seonsprer%20beumeNylst:”7″_p,”3″_rc1l_el_ce0blta0_:”8″p3″_},t”ghri:”8″p6″_0,”:39_p,”seal:f4″p7″_e,lsfa”:49_p,”seal:f0″p1″_e,lsfa”:44_p,”uetr”:43_p,”)”55%2025,25,%2055(2gb”r”:p9″_”,4)%2034,%2034,(3gb”r”:15_p,”N”IOUTOL”S”:76_p{“”:55_p,”}}%24″:”1″p8″_e,ru:t3″p6″_:{5″p5″_”,CYENRRCU:”3″p7″_:{9″p2″_},”}:”9″p7″_”,)~(1~z:”5″p7″_:{6″p5″_:{2″_p{“”:20_p{“},”}:”7″_p,”3″_rc0l_el_ce0blta0_:”8″p3″_},t”ef”l”:68_p,”:09″p3″_e,lsfa”:74_p,”seal:f9″p4″_e,lsfa”:10_p,”seal:f4″p4″_e,lsfa”:43_p,”)”55%2025,25,%2055(2gb”r”:p9″_”,4)%2034,%2034,(3gb”r”:15_p,”N”IOSTUE”Q”:76_p{“”:55_p,”}}seal:f1″_p{“”:55_p,”G”INTR”S”:73_p{“”:29_p,”}}”””:79_p,”s”ueenev”R”:75_p{“”:30_p{“”:p2″_:{0″p2″_[{],}}%3B”1)21,%2063%2017,13b(rg:%20orol cndougrckba%3B%20px%200t:ennd ixtte:”8″_p,”r”teeneCylstd%20oleBylst:”7″_p,”2″_rc2l_el_ce0blta0_:”8″p3″_},r”teen”c”:68_p,”:09″p3″_e,lsfa”:74_p,”seal:f9″p4″_e,ru:t0″p1″_e,lsfa”:44_p,”seal:f3″p4″_”,1)21,%2063%2017,13b(rg:”9″_p,”)”34,%2034,%2034b(rg:”5″p1″_”,ONTIESQU:”6″p7″_:{5″p5″_},e}lsfa”:p1″_:{5″p5″_”,NGRIST:”3″p7″_:{9″p2″_},”}:”9″p7″_”,%202arYe:”5″p7″_:{0″p3″_:{2″_p{“”:20_p{“},”})%3B11%2023,16,%2037(1gb%20rr:locod unrokgac%20bx%3B0p:%20ntdeint ex”t”:p8″_”,erntCelety%20sldBolety”s”:p7″_”,r21__cllce0_leab_t”0″:38_p,””}erntce:”8″p6″_0,”:39_p,”seal:f4″p7″_e,lsfa”:49_p,”uetr”:10_p,”seal:f4″p4″_e,lsfa”:43_p,”)”11%2023,16,%2037(1gb”r”:p9″_”,4)%2034,%2034,(3gb”r”:15_p,”N”IOSTUE”Q”:76_p{“”:55_p,”}}seal:f1″_p{“”:55_p,”G”INTR”S”:73_p{“”:29_p,”}}”””:79_p,”1″r%20ea”Y”:75_p{“”:30_p{“”:p2″_:{0″p2″_,{}}%3B”1)21,%2063%2017,13b(rg:%20orol cndougrckba%3B%20px%200t:ennd ixtte:”8″_p,”r”teeneCylst:”7″_p,”2″_rc0l_el_ce0blta0_:”8″p3″_},r”teen”c”:68_p,”:09″p3″_e,lsfa”:74_p,”seal:f9″p4″_e,lsfa”:10_p,”seal:f4″p4″_e,lsfa”:43_p,”)”11%2023,16,%2037(1gb”r”:p9″_”,4)%2034,%2034,(3gb”r”:15_p,”N”IOSTUE”Q”:76_p{“”:55_p,”}}seal:f1″_p{“”:55_p,”G”INTR”S”:73_p{“”:29_p,”}}”””:79_p,””””:75_p{“”:30_p{“”:p2″_:{0″p2″_[{],}}%3B”1)21,%2063%2017,13b(rg:%20orol cndougrckba%3B%20px%200t:ennd ixtte%3B%20neno:%20ayplis”d”:p8″_”,erntCelety%20sldBolety”s”:p7″_”,r12__cllce0_leab_t”0″:38_p,””}erntce:”8″p6″_”,_2″0″:78_p,”:09″p3″_e,lsfa”:74_p,”seal:f9″p4″_e,ru:t0″p1″_e,lsfa”:44_p,”seal:f3″p4″_”,1)21,%2063%2017,13b(rg:”9″_p,”)”34,%2034,%2034b(rg:”5″p1″_”,ONTIESQU:”6″p7″_:{5″p5″_},e}lsfa”:p1″_:{5″p5″_”,NGRIST:”3″p7″_:{9″p2″_},”}:”9″p7″_”,:”5″p7″_:{0″p3″_:{2″_p{“”:20_p{“},”})%3B11%2023,16,%2037(1gb%20rr:locod unrokgac%20bx%3B0p:%20ntdeint ex%20te%3Bon%20ny:laspdi:”8″_p,”r”teeneCylstd%20oleBylst:”7″_p,”1″_rc1l_el_ce0blta0_:”8″p3″_},r”teen”c”:68_p,”1″0_:”8″p7″_0,”:39_p,”seal:f4″p7″_e,lsfa”:49_p,”uetr”:10_p,”seal:f4″p4″_e,lsfa”:43_p,”)”11%2023,16,%2037(1gb”r”:p9″_”,4)%2034,%2034,(3gb”r”:15_p,”N”IOSTUE”Q”:76_p{“”:55_p,”}}seal:f1″_p{“”:55_p,”G”INTR”S”:73_p{“”:29_p,”}}”””:79_p,””””:75_p{“”:30_p{“”:p2″_:{0″p2″_,{}}%3B”1)21,%2063%2017,13b(rg:%20orol cndougrckba%3B%20px%200t:ennd ixtte:”8″_p,”r”teeneCylstd%20oleBylst:”7″_p,”:36″p1″_”,r10__cllce0_leab_t”0″:38_p,””}erntce:”8″p6″_”,_0″0″:78_p,”:09″p3″_e,lsfa”:74_p,”seal:f9″p4″_e,ru:t0″p1″_e,lsfa”:44_p,”seal:f3″p4″_”,1)21,%2063%2017,13b(rg:”9″_p,”)”34,%2034,%2034b(rg:”5″p1″_”,ONTIESQU:”6″p7″_:{5″p5″_},e}lsfa”:p1″_:{5″p5″_”,NGRIST:”3″p7″_:{9″p2″_},”}:”9″p7″_”,tsenematSte%20omnc”I”:75_p{“”:30_p{“”:p2″_:{0″p2″_[{],}}%3B”1)21,%2063%2017,13b(rg:%20orol cndougrckba%3B%20px%200t:ennd ixtte%3B%20neno:%20ayplis”d”:p8″_”,erntCelety%20sldBolety”s”:p7″_”,r02__cllce0_leab_t”0″:38_p,””}erntce:”8″p6″_”,_2″0″:78_p,”:09″p3″_e,lsfa”:74_p,”seal:f9″p4″_e,ru:t0″p1″_e,lsfa”:44_p,”seal:f3″p4″_”,1)21,%2063%2017,13b(rg:”9″_p,”)”34,%2034,%2034b(rg:”5″p1″_”,ONTIESQU:”6″p7″_:{5″p5″_},e}lsfa”:p1″_:{5″p5″_”,NGRIST:”3″p7″_:{9″p2″_},”}:”9″p7″_”,:”5″p7″_:{0″p3″_:{2″_p{“”:20_p{“},”})%3B11%2023,16,%2037(1gb%20rr:locod unrokgac%20bx%3B0p:%20ntdeint ex%20te%3Bon%20ny:laspdi:”8″_p,”r”teeneCylstd%20oleBylst:”7″_p,”0″_rc1l_el_ce0blta0_:”8″p3″_},r”teen”c”:68_p,”1″0_:”8″p7″_0,”:39_p,”seal:f4″p7″_e,lsfa”:49_p,”uetr”:10_p,”seal:f4″p4″_e,lsfa”:43_p,”)”11%2023,16,%2037(1gb”r”:p9″_”,4)%2034,%2034,(3gb”r”:15_p,”N”IOSTUE”Q”:76_p{“”:55_p,”}}seal:f1″_p{“”:55_p,”G”INTR”S”:73_p{“”:29_p,”}}”””:79_p,””””:75_p{“”:30_p{“”:p2″_:{0″p2″_,{}}%3B”1)21,%2063%2017,13b(rg:%20orol cndougrckba%3B%20px%200t:ennd ixtte:”8″_p,”r”teeneCylstd%20oleBylst:”7″_p,”:36″p1″_”,r00__cllce0_leab_t”0″:38_p,””}erntce:”8″p6″_”,_0″0″:78_p,”:09″p3″_e,lsfa”:74_p,”seal:f9″p4″_e,ru:t0″p1″_e,lsfa”:44_p,”seal:f3″p4″_”,1)21,%2063%2017,13b(rg:”9″_p,”)”34,%2034,%2034b(rg:”5″p1″_”,ONTIESQU:”6″p7″_:{5″p5″_},e}lsfa”:p1″_:{5″p5″_”,NGRIST:”3″p7″_:{9″p2″_},”}:”9″p7″_”,OY%20RND%20AE,ET%20PE,ET”P”:75_p{“”:30_p{“”:p2″_:{0″p2″_[{:[3″p1″_e,lsfa”:41_p,””}wnDoopdr:”7″p2″_1,: 5″p2″_},:{5″p7″_e,lsfa”:82_p{“”:28_p,””””:22_p,”seal:f5″p3″_e,ru:t6″p3″_},:{5″p5″_”,leab%20TedtltiUn:”9″p6″_3,”:17_p,”:98″p5″_[{“:65_p{”

3.	Determine the amount of receivables from customers that the company would show in its year 1 and year 2 balance sheets prepared according to the accrual accounting model.

Year 1 Year 2

Receivables “}:”n”ioptriscdeb_ta,”{}”:62_p,”0]:[7″p6″_l,ul:n1″p5″_l,ul:n6″p2″_},:{2″p3″_e,lsfa”:42_p,” 1″:50_p,” 1″:24_p,” 1″:31_p,”:05″_p,”:04″_p,”seal:f8″p4″_l,ul:n7″p3″_],2}34″:77_p,”84″:34_p{“:[3″p2″_e,ru:t5″p4″_”,leit%20Tew”N”:mena,”}]seal:f7″p4″_2,”:54_p,”[]”:33_p,””}00″1″:c2,”0″10:”1″”c”,00″1″:c0{“”:19_p,””}23:”1″,”3″”2″:”0:{9″p5″_],}]”}seonsprer%20beumeNylst:”7″_p,”1″_rc2l_el_ce0blta0_:”8″p3″_},t”ghri:”8″p6″_0,”:39_p,”seal:f4″p7″_e,lsfa”:49_p,”seal:f0″p1″_e,lsfa”:44_p,”uetr”:43_p,”)”55%2025,25,%2055(2gb”r”:p9″_”,4)%2034,%2034,(3gb”r”:15_p,”N”IOUTOL”S”:76_p{“”:55_p,”}}%24″:”1″p8″_2,”:53_p,”uetr”:63_p{“”:55_p,”Y”NCREUR”C”:73_p{“”:29_p,”}}”””:79_p,”~”2)(2~z:”5″p7″_:{6″p5″_:{2″_p{“”:20_p{“},”}seonsprer%20beumeNylst:”7″_p,”1″_rc1l_el_ce0blta0_:”8″p3″_},t”ghri:”8″p6″_0,”:39_p,”seal:f4″p7″_e,lsfa”:49_p,”seal:f0″p1″_e,lsfa”:44_p,”uetr”:43_p,”)”55%2025,25,%2055(2gb”r”:p9″_”,4)%2034,%2034,(3gb”r”:15_p,”N”IOUTOL”S”:76_p{“”:55_p,”}}%24″:”1″p8″_2,”:53_p,”uetr”:63_p{“”:55_p,”Y”NCREUR”C”:73_p{“”:29_p,”}}”””:79_p,”~”9)(1~z:”5″p7″_:{6″p5″_:{2″_p{“”:20_p{“},”}:”7″_p,”1″_rc0l_el_ce0blta0_:”8″p3″_},t”ef”l”:68_p,”:09″p3″_e,lsfa”:74_p,”seal:f9″p4″_e,lsfa”:10_p,”seal:f4″p4″_e,lsfa”:43_p,”)”55%2025,25,%2055(2gb”r”:p9″_”,4)%2034,%2034,(3gb”r”:15_p,”N”IOSTUE”Q”:76_p{“”:55_p,”}}seal:f1″_p{“”:55_p,”G”INTR”S”:73_p{“”:29_p,”}}”””:79_p,”s”leabivceRe:”5″p7″_:{0″p3″_:{2″_p{“”:20_p{“,[}]”})%3B11%2023,16,%2037(1gb%20rr:locod unrokgac%20bx%3B0p:%20ntdeint ex”t”:p8″_”,erntCelety%20sldBolety”s”:p7″_”,r02__cllce0_leab_t”0″:38_p,””}erntce:”8″p6″_0,”:39_p,”seal:f4″p7″_e,lsfa”:49_p,”uetr”:10_p,”seal:f4″p4″_e,lsfa”:43_p,”)”11%2023,16,%2037(1gb”r”:p9″_”,4)%2034,%2034,(3gb”r”:15_p,”N”IOSTUE”Q”:76_p{“”:55_p,”}}seal:f1″_p{“”:55_p,”G”INTR”S”:73_p{“”:29_p,”}}”””:79_p,”2″r%20ea”Y”:75_p{“”:30_p{“”:p2″_:{0″p2″_,{}}%3B”1)21,%2063%2017,13b(rg:%20orol cndougrckba%3B%20px%200t:ennd ixtte:”8″_p,”r”teeneCylstd%20oleBylst:”7″_p,”0″_rc1l_el_ce0blta0_:”8″p3″_},r”teen”c”:68_p,”:09″p3″_e,lsfa”:74_p,”seal:f9″p4″_e,ru:t0″p1″_e,lsfa”:44_p,”seal:f3″p4″_”,1)21,%2063%2017,13b(rg:”9″_p,”)”34,%2034,%2034b(rg:”5″p1″_”,ONTIESQU:”6″p7″_:{5″p5″_},e}lsfa”:p1″_:{5″p5″_”,NGRIST:”3″p7″_:{9″p2″_},”}:”9″p7″_”,%201arYe:”5″p7″_:{0″p3″_:{2″_p{“”:20_p{“},”})%3B11%2023,16,%2037(1gb%20rr:locod unrokgac%20bx%3B0p:%20ntdeint ex”t”:p8″_”,erntCelety%20sldBolety”s”:p7″_”,r00__cllce0_leab_t”0″:38_p,””}erntce:”8″p6″_0,”:39_p,”seal:f4″p7″_e,lsfa”:49_p,”uetr”:10_p,”seal:f4″p4″_e,lsfa”:43_p,”)”11%2023,16,%2037(1gb”r”:p9″_”,4)%2034,%2034,(3gb”r”:15_p,”N”IOSTUE”Q”:76_p{“”:55_p,”}}seal:f1″_p{“”:55_p,”G”INTR”S”:73_p{“”:29_p,”}}”””:79_p,””””:75_p{“”:30_p{“”:p2″_:{0″p2″_[{:[3″p1″_e,lsfa”:41_p,””}wnDoopdr:”7″p2″_1,: 5″p2″_},:{5″p7″_e,lsfa”:82_p{“”:28_p,””””:22_p,”seal:f5″p3″_e,ru:t6″p3″_},:{5″p5″_”,leab%20TedtltiUn:”9″p6″_3,”:17_p,”:28″p5″_[{“:65_p{”

managerial accounting 448316

Aug 29, 2021 | Uncategorized

Victoria Hair Salon styles hair in three operations washing, cutting/setting, and drying, and charges $25 per styling. (Each styling is one unit.) Victoria styles hair on a walk in basis and does not take appointments; customers who face a wait walk across the street to another salon. Victoria’s owners find it has a cutting/setting bottleneck on Saturdays due to a limited number of stylists. The bottleneck exists for a total of eight hours each Saturday. Pertinent information follows: Washing Cutting/setting Drying Hourly capacity 30 Units 12 Units 15 Units

Saturday capacity 240 Units 96 Units 120 Units Actual Saturday production 96 Units 96 Units 96 Units

Each hair styling has variable costs of $10. Victoria’s output is constrained by the 96 units of cutting/setting capacity. Two options exist that can relieve the bottleneck at the cutting/ setting operation. Consider the differential costs associated with each of the following options to determine the impact on throughput.

Option a. Victoria can increase bottleneck output by hiring one nonstylist employee to prepare customers for the cutting/setting by washing and combing their hair. This would increase the cutting/setting capacity to 120 each Saturday. The cost for this additional employee is $100 per Saturday.

Option b. Victoria could hire another stylist for each Saturday, increasing the cutting/ setting capacity to 108 each Saturday and costing an additional $200 per Saturday.

Should Victoria’s owner go ahead with either of the two options? Why or whynot?

incremental revenue 448318

Aug 29, 2021 | Uncategorized

The Walter Jewelry Company produces a bracelet which normally sells for $79.95. The company produces 1,500 units annually but has the capacity to produce 2,000 units. A special order for manufacturing and selling 200 bracelets at $49.95 has been received which would not disrupt current operations. Current costs for the bracelet are as follows:
Direct materials $17.00
Direct labor 14.50
Variable overhead 4.00
Fixed overhead 5.00
Total $40.50

In addition, the customer would like to add a monogram to each bracelet which would require an additional $2 per unit in additional labor costs and Walter Company would also have to purchase a piece of equipment to create the monogram which would cost $1,600. This equipment would not have any other uses.

With regard to this special order only:
Answer

incremental revenues will exceed incremental costs by $2,490.

incremental revenues will exceed incremental costs by $890.

incremental revenues will exceed incremental costs by $2,890

incremental revenues will exceed incremental costs by $1,290

cash budget 448328

Aug 29, 2021 | Uncategorized

During the last week of August, Apache Arts Company%u2019s owner approaches the bank for an $100,000 loan to be made on September 2 and repaid on November 30 with annual interest of 17%, for an interest cost of $4,250. The owner plans to increase the store%u2019s inventory by $60,000 during September and needs the loan to pay for inventory acquisitions. The bank%u2019s loan officer needs more information about Apache Arts%u2019 ability to repay the loan and asks the owner to forecast the store%u2019s November 30 cash position. On September 1, Apache Arts is expected to have a $4,000 cash balance, $145,000 of accounts receivable, and $100,000 of accounts payable. Its budgeted sales, merchandise purchases, and various cash disbursements for the next three months follow.

Budgeted Figures*	September		October		November
Sales	$	280,000	$	395,000	$	460,000
Merchandise purchases		230,000		205,000		192,000
Cash disbursements
Payroll		20,300		22,000		24,200
Rent		11,000		11,000		11,000
Other cash expenses		34,700		30,600		20,650
Repayment of bank loan						100,000
Interest on the bank loan						4,250

*Operations began in August; August sales were $265,000 and purchases were $125,000.

The budgeted September merchandise purchases include the inventory increase. All sales are on account. The company predicts that 28% of credit sales is collected in the month of the sale, 43% in the month following the sale, 23% in the second month, 5% in the third, and the remainder is uncollectible. Applying these percents to the August credit sales, for example, shows that $113,950 of the $265,000 will be collected in September, $60,950 in October, and $13,250 in November. All merchandise is purchased on credit; 60% of the balance is paid in the month following a purchase, and the remaining 40% is paid in the second month. For example, of the $125,000 August purchases, $75,000 will be paid in September and $50,000 in October.

Required:

Prepare a cash budget for September, October, and November for Apache Arts Company. (Input all amounts as positive values. Leave no cells blank be certain to enter “0” wherever required. Round your intermediate calculations and final answers to the nearest dollar amount. Omit the “$” sign in your response.)

APACHE ARTS COMPANY Cash Budget For September, October, and November
	September	October	November
(Click to select) Office salaries Payments for merchandise Beginning cash balance Loan balance, end of month Preliminary cash balance	$	$	$
Cash receipts
(Click to select) Payments on accounts payable Repayment on bank loan Collection on accounts receivable Interest on bank loan Payroll
(Click to select) Payments on accounts payable Payroll Repayment on bank loan Receipts from bank loan Interest on bank loan

Total cash available
Cash disbursements
(Click to select) Additional loan from bank Payments on accounts payable Collection on accounts payable Collection on accounts receivable Receipts from bank loan
(Click to select) Receipts from bank loan Collection on accounts payable Payroll Additional loan from bank Collection on accounts receivable
(Click to select) Collection on accounts payable Collection on accounts receivable Receipts from bank loan Additional loan from bank Rent
(Click to select) Receipts from bank loan Collection on accounts payable Collection on accounts receivable Other cash expenses Additional loan from bank
(Click to select) Additional loan from bank Receipts from bank loan Collection on accounts receivable Collection on accounts payable Repayment on bank loan
(Click to select) Interest on bank loan Additional loan from bank Collection on accounts payable Collection on accounts receivable Receipts from bank loan

Total cash disbursements

(Click to select) Repayment of loan to bank Beginning cash balance Additional loan from bank Preliminary cash balance Ending cash balance	$	$	$

roi return on investment 448332

Aug 29, 2021 | Uncategorized

Westerville Company reported the following results from last year%u2019s operations:

Sales $ 1,000,000

Variable expenses 300,000

Contribution margin 700,000

Fixed expenses 500,000

Net operating income $ 200,000

Average operating assets $ 625,000

This year the company has a $120,000 investment opportunity with the following cost and revenue characteristics:

Sales $ 200,000

Contribution margin ratio 60 % of sales

Fixed expenses $ 90,000

The company%u2019s minimum required rate of return is 15%.

1. What is last year’s margin?

2. What is last year’s turnover?

3. What is lat year’s ROI?

4. What is the margin related to this year’s investment opportunity?

5. What is the turnover related to this year’s investment opportunity?

6. What is the ROI related to this year’s investment opportunity?

7. If the company pursues the investment opportunity adn otherwise performs thesame as last year, what margin wil it earn this year?

8. If the company pursues the investment opportunity adn otherwise performs the same as laye year, what turnover will it earn this year

managerial accounting 448335

Aug 29, 2021 | Uncategorized

Whipple Company manufactures widgets. Cates Manufacturing has approached Whipple with a proposal to sell the company widgets at a price of $160,000 for 100,000 units. Whipple is currently making these components in its own factory. The following costs are associated with this part of the process when 100,000 units are produced:

Direct material	$ 62,000
Direct labor	58,000
Manufacturing overhead	80,000
Total	$200,000

The manufacturing overhead consists of $32,000 of costs that will be eliminated if the components are no longer produced by Whipple. From Whipple’s point of view, how much is the incremental cost or savings if the widgets are bought instead of made?

$8,000 incremental savings

$40,000 incremental cost

$40,000 incremental savings

$8,000 incremental cost

acct 212 448343

Aug 29, 2021 | Uncategorized

Wings Flight School offers flying lessons at a small municipal airport. The school%u2019s owner and manager has been attempting to evaluate performance and control costs using a variance report that compares the planning budget to actual results. A recent variance report appears below:

Wings Flight School Variance Report For the Month Ended August 31
	Planning Budget		Actual Results		Variances
Lessons		200		210
Revenue	$	45,000	$	47,300	$	2,300	F

Expenses:
Instructor wages		12,400		12,910		510	U
Aircraft depreciation		11,400		11,970		570	U
Fuel		4,200		5,150		950	U
Maintenance		3,270		3,470		200	U
Ground facility expenses		2,440		2,350		90	F
Administration		4,410		4,340		70	F

Total expense		38,120		40,190		2,070	U

Net operating income	$	6,880	$	7,110	$	230	F

After several months of using such variance reports, the owner has become frustrated. For example, she is quite confident that instructor wages were very tightly controlled in August, but the report shows an unfavorable variance.

The planning budget was developed using the following formulas, where q is the number of lessons sold:


Revenue	$225q
Instructor wages	$62q
Aircraft depreciation	$57q
Fuel	$21q
Maintenance	$ 670 + $13q
Ground facility expenses	$1,640 + $4q
Administration	$4,210 + $1q

Required:
2.	Complete the flexible budget performance report for the school for August. (Input all amounts as positive values. Leave no cells blank be certain to enter “0” wherever required. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Omit the “$” sign in your response.)

Wings Flight School Flexible Budget Performance Report For the Month Ended August 31
	Activity Variances	Revenue and Spending Variances
Revenue	$	$

Expenses:
Instructor wages
Aircraft depreciation
Fuel
Maintenance
Ground facility expenses
Administration

Total expense

Net operating income	$	$

accounting 1 show work 448348

Aug 29, 2021 | Uncategorized

Show work or brief explanation do not just guess I will not give points otherwise.

1.) When originally purchased, a vehicle had an estimated useful life of 9 years. The vehicle cost $26,000 and its estimated salvage value is $1,900. After 4 years of straight line depreciation, the asset’s total estimated useful life was revised from 9 years to 6 years and there was no change in the estimated salvage value. The depreciation expense in year 5 equals (round depreciation per year to a whole number):

$7,694

$6,594

$6,944

$6,694

$7,194

2.)
A company sold a machine that originally cost $125,000 for $70,000 cash. The accumulated depreciation on the machine was $55,000. The company should recognize a:

$55,000 loss

$70,000 gain

$90,000 loss

$0 gain or loss

$90,000 gain

3.)
A company purchased property for $130,000. The property included a building, a parking lot, and land. The building was appraised at $60,000; the land at $45,000, and the parking lot at $18,000. The value of the land to be recorded in the accounting records is (rounded):

$45,000

$47,561

$130,000

$0

$47,786

4)
A company paid $190,000, plus a 9% commission and $6,500 in closing costs for a property. The property included land appraised at $90,000, land improvements appraised at $36,000, and a building appraised at $54,000. What should be the allocation of this property’s costs in the company’s accounting records?

Land $42,720; Land Improvements, $64,080; Building, $106,800

Land $106,800; Land Improvements, $42,720; Building, $64,080

Land $95,000; Land Improvements, $38,000; Building, $57,000

Land $90,000; Land Improvements; $36,000; Building; $54,000

Land $38,000; Land Improvements, $57,000; Building, $95,000
5)
A company purchased a rope braiding machine for $188,000. The machine has a useful life of 8 years and a residual value of $13,500. It is estimated that the machine could produce 770,000 units of climbing rope over its useful life. In the first year, 104,000 units were produced. In the second year, production increased to 107,000 units. Using the units of production method, what is the amount of depreciation that should be recorded for the second year? Do not round the depreciation per unit. Round your final answer to a whole dollar amount.

$24,249

$26,125

$23,569

$28,001

$27,216

6) A company purchased a POS cash register on January 1 for $5,300. This register has a useful life of 10 years and a salvage value of $600. What would be the depreciation expense for the second year of its useful life using the double declining balance method? Round all calculations to whole dollar amounts

	$1,060
	$470
	$940
	$752
	$848

i need help with my general ledger for the comprehensive problem 1 period 2 the acco 448349

Aug 29, 2021 | Uncategorized

I need help with my general ledger for the comprehensive problem 1, period 2: the accounting cycle in the heintz & parry 21 edition college accounting book. I can’t figure out what I am leaving out because the accounts in my worksheet are not balancing.

Document Preview:

1 101 130650 311 130650 1 101 200 404 200 2 182 3600 101 3600 2 183 8000 101 8000 2 548 125 101 125 3 142 100 122 100 3 101 52700 401 52700 3 521 40000 101 40000 3 101 600000 311 600000 4 202 400 101 400 4 161 100000 101 100000 4 171 530000 101 530000 4 181 9000 101 9000 5 145 1000 101 1000 5 144 22950 202 22950 5 142 1200 202 1200 7 548 120 101 120 10 101 62750 401 62750 13 511 30000 101 30000 14 202 1000 101 1000 17 101 63000 122 63000 19 524 18400 202 18400 21 101 63400 401 63400 23 512 2500 101 2500 25 521 850 101 850 27 511 30000 101 30000 28 512 1800 101 1800 29 524 14325 202 14325 30 533 3300 101 3300 30 525 1800 101 1800 30 202 47350 101 47350 31 312 7500 101 7500 101 1 200 200 2 3600 3400 2 8000 11400 3 125 11525 3 52700 41175 3 40000 1175 3 600000 601175 4 400 600775 4 100000 500775 4 530000 29225 4 9000 38225 5 1000 39225 7 120 39345 10 62750 23405 13 30000 6595 14 1000 7595 17 63000 55405 21 63400 118805 23 2500 116305 25 850 115455 27 30000 85455 28 1800 83655 30 3300 80355 30 1800 78555 30 47350 31205 31 7500 23705 2300 0.1 230 122 1 200 200 31 230 430 142 3 100 100 5 1200 1100 31 150 950 144 5 22950 22950 19 18400 41350 29 14325 55675 30 47350 8325 145 31 1500 6000 146 7 40 40 40 80 40 120 161 4 100000 100000 171 4 530000 530000 171.1 181 4 9000 9000 181.1 0.125 182 2 3600 3600 182.1 183 2 8000 8000 183.1 30 202 4 400 400 5 22950 22550 5 1200 23750 19 18400 42150 29 14325 56475 30 47350 9125 219 31 6000 6000 311 3 600000 600000 312 31 7500 7500 313 401 3 52700 52700 10 62750 115450 17 63000 178450 21 63400 241850 404 1 200 200 511 13 30000 30000 27 30000 60000 512 23 2500 2500 28 1800 4300 521 3 40000 40000 523 5 1200 1200 524 …

Attachments:

Cash E May Fo….xlsx

accounting 3 multiple choice questions show work 448381

Aug 29, 2021 | Uncategorized

Show work

A company uses the periodic inventory system and had the following activity during the current monthly period.

November 1:	Beginning inventory	100 units @ $20
November 5:	Purchased	100 units @ $22
November 8:	Purchased	50 units @ $23
November 16:	Sold	200 units @ $45
November 19:	Purchased	50 units @ $25

Using the weighted average inventory method, the company’s ending inventory would be reported at:

$4,400

$2,250

$2,400

$2,200

$2,000

What are the total assets for Shiver Ice House?

Common Stock	$129,000
Cash	$120,240
Supplies	$3,300
Prepaid Rent	$5,000
Revenue	$21,800
Retained Earnings	$31,800
Accounts Payable	$26,800
Accounts Receivable	$26,050
Office Equipment	$26,900
Unearned Revenue	$7,770
Utilities Expense	$440
Shaving Equipment	$35,240

	$238,530
	$216,730
	$311,140
	$235,980
	$123,200

A company has inventory of 12 units at a cost of $11 each on September 1. On September 5, they purchased 5 units at $13 per unit. On September 12 they purchased 19 units at $15 per unit. On September 15, they sold 30 units. Using the FIFO periodic inventory method, what is the value of the inventory at September 15 after the sale?

	$285.
	$116.
	$540.
	$90.
	$255.

cost estimation 448404

Aug 29, 2021 | Uncategorized

X Company has two production departments,A and B.At the start of the year,the following budgeted information is available:

Department A

Overhead $4,100,000

Direct labor hours 50,000

Machine hours 110,000

Department B

Overhead $1,900,000

Direct labor hours 60,000

Machine hours 130,000

The following information is for two specific jobs,Job 111 and Job 222,that were completed during the year:

Department A Department B

Job 111

Direct labor hours 735 222

Machine hours 1,070 840

Job 222

Direct labor hours 337 520

Machine hours 1,290 700

1.Using a plantwide allocation system with direct labor hours as the cost driver,what is the allocation to Job 222?

2.Using a departmental allocation system with direct labor hours as the cost driver in Department A and machine hours as the cost driver in Department B,what is the allocation to Job 222?

cost accounting 448405

Aug 29, 2021 | Uncategorized

Xyon company purchases 10,000 pumps annually from Kobec inc because the price keep increasing and reached $ 88 per unit last year, Xyon’s management has asked for a cost estimate to manufacturing the pumps internally Xyon make stamping and casting and has little experence with product that required assembly, the engineering manufacturing and accounting departmet have prepared a report for management that includes the following estimate for an assembly run of 10,000 pumps also the company will hire additional production employees but will need no addotional equipment space or supervision the report estimate the total costs for10,000 units are estimated at $ 1,200,000 0r $120 a unit the current purchase price is $ 88 a unit and the report estimated the continued purchased of the product , if the pumps are purchased the currently unused space could be leased for$ 150,000 annualy

componets $ 270.000

assembly labor 290,000

share of existing facility costs based on labor 640,000

total cost $ 1200,000

assembly labor consit of hourly production workers

A was the analysis prepared by company and continue purchasing the pumps is correct show your calculation

b present several benfit and problem dealing with outside suppliers such Kobec Inc

account 203 448422

Aug 29, 2021 | Uncategorized

For many years, Diehl Company has produced a small electrical part that it uses in the production of its standard line of diesel tractors. The company%u2019s unit product cost for the part, based on a production level of 55,000 parts per year, is as follows:

	Per Part		Total
Direct materials	$	6
Direct labor		2.80
Variable manufacturing overhead		.40
Fixed manufacturing overhead, traceable		2.70	$	148,500
Fixed manufacturing overhead,common (allocated on the basis of labor hours)		2.15	$	118,250

Unit product cost	$	14.05

An outside supplier has offered to supply the electrical parts to the Diehl Company for only $12.05 per part. One third of the traceable fixed manufacturing cost is supervisory salaries and other costs that can be eliminated if the parts are purchased. The other two thirds of the traceable fixed manufacturing costs consist of depreciation of special equipment that has no resale value. Economic depreciation on this equipment is due to obsolescence rather than wear and tear. The decision to buy the parts from the outside supplier would have no effect on the common fixed costs of the company, and the space being used to produce the parts would otherwise be idle.

Required:

1.	Determine the total relevant cost if parts are made inside the company. (Do not round intermediate calculations. Round your answer to the nearest dollar amount. Omit the “$” sign in your response.)

Total relevant cost (55,000 parts)

$

2.	Determine the total relevant cost if parts are purchased from the outside supplier. (Do not round intermediate calculations. Round your answer to the nearest dollar amount. Omit the “$” sign in your response.)

Total relevant cost (55,000 parts)

$

3.

What is the increase or decrease in profits as a results of purchasing the parts from the outside supplier rather than making them inside the company? (Input the amount as a positive value. Do not round intermediate calculations. Round your answer to the nearest dollar amount. Omit the “$” sign in your response.)

Profit would

by

$

per year

need help 448432

Aug 29, 2021 | Uncategorized

. Consider the cash account below.
Additional Information: cash disbursements were 80% of collections.

Cash
??	Beg. Balance
115,375	Collections
??	Disbursements
80,275	End Balance

How much was the Beginning Balance of the Cash Account?

4. Journalize the entries to record the following:

Jun 1 Established a petty cash fund of $200
Jun 30 The amount of cash in the petty cash fund is now $57. The fund is replenished based on the following receipts: postage, $25; entertainment $100; miscellaneous $20.

Record any discrepancy in the cash short and over account.

Journal

Date	Description	Post Ref.	Debit	Credit

changes in depreciation methods estimates 448439

Aug 29, 2021 | Uncategorized

On 1/1/08, Powell Co purchased a building and machinery that have the following useful lives, salvage value, and costs.

Building, 25 years estimated useful life, $5,000,000 cost, $500,000 salvage value
Machinery, 10 yr estimated useful life, $700,000 cost, no salvage value

The building has been depreciated under the striaght line method through 2012. in 2013, the company decide to switch to the double declining balance method of depreciation for the building. Powell also decided to change the total useful life of the machinery to 8 years, with a salvage value of $35,000 at the end of that time. The machinery is depreciated using the straight line method.

a) Prepare the journal entry necessary to record the depreciation expense on the building in 2013.

b) Compute depreciation expense on teh machinery for 2013.

accounting 448444

Aug 29, 2021 | Uncategorized

1 53 Budgets and Performance Evaluation Goal: Create an Excel spreadsheet to prepare a performance report, and use the results to answer questions about your findings. Scenario: Beta Alpha Psi, the accounting honorary fraternity, has asked you to prepare a performance report about a homecoming party that it recently held. The background data for Beta Alpha Psi%u2019s performance report appears in the Fundamental Assignment Material 1 A2. When you have completed your spreadsheet, answer the following questions:

1. Based on the formatting option used in the exercise, do the negative ( red) variances represent amounts that are over or under budget?

2. Which cost/ costs changed because the number of attendees increased?

3. Did the fraternity stay within the budgeted amount for food on a per person basis?

Step by Step:

1. Open a new Excel spreadsheet.

2. In column A, create a bold faced heading that contains the following:

Row 1: Chapter 1 Decision Guideline

Row 2: Beta Alpha Psi Homecoming Party

Row 3: Performance Report

Row 4: Today%u2019s Date

3. Merge and center the date across columns A%u2013 D.

bank reconciliation information for cole co for may 31 2011 is as follows 448446

Aug 29, 2021 | Uncategorized

1. Bank reconciliation information for Cole Co. for May 31, 2011 is as follows:

(a)	The bank statement balance is $2,936.
(b)	The cash account balance is $3,194.
(c)	Outstanding checks amounted to $465.
(d)	Deposits in transit are $655.
(e)	The bank service charge is $50.
(f)	A check for $97 for supplies was recorded as $79 in the ledger.

Record the appropriate journal entry for Cole Co.

2. Consider the following journal entry made by Jones Company. Upon investigation, what might you find happened to create this amount of Cash Over/Short account difference? Give three possible reasons for this difference.

How much was the Beginning Balance of the Cash Account?

Cash	2,235.00
Cash Short and Over		100.00
Sales		2,135.00

please provide step by step explanation no points for half or incorrect answers the 448449

Aug 29, 2021 | Uncategorized

1. Brady Corp. is considering the purchase of a piece of equipment that costs $23,000. Projected net annual cash flows over the project%u2019s life are:

Year Net Annual Cash Flow

1 $ 3,000

2 8,000

3 15,000

4 9,000

The cash payback period is

b. 2.80 years.

2. Bradshaw Inc. is contemplating a capital investment of $85,000. The cash flows over the project%u2019s four years are:

Expected Annual Expected Annual

Year Cash Inflows Cash Outflows

1 $30,000 $12,000

2 45,000 20,000

3 60,000 25,000

4 50,000 30,000

The cash payback period is

b. 3.35 years.

3. Jordan Company is considering the purchase of a machine with the following data:

Initial cost $130,000

One time training cost 12,000

Annual maintenance costs 15,000

Annual cost savings 75,000

Salvage value 20,000

The cash payback period is

a. 2.37 years.

4. A company is considering purchasing a machine that costs $320,000 and is estimated to have no salvage value at the end of its 8 year useful life. If the machine is purchased, annual revenues are expected to be $100,000 and annual operating expenses exclusive of depreciation expense are expected to be $38,000. The straight line method of depreciation would be used.

The cash payback period on the machine is

c. 5.2 years.

managerial accounting 448457

Aug 29, 2021 | Uncategorized

1. A cost pool is :

A. a collection of homogeneous cost to be assigned.

B. almost always the combined result of decision made by different responsibility center manager.

C. The primary function of a responsibility accounting system.

D. the amount of cost that has been allocated say, 10% to a user department.

E. The tool used to allocate cost dollars to user departments.

2.Variable costs are those costs that:

A. vary (in total ) inversely with changes in activity.

B. vary (in totals) directly with in activity.

C. remain constant (in total) as activity changes.

D. Decrease on a per unit basis as activity increase.

E. Increase on a per unit basis as activity increases.

3. When comparing EOQ and JIT inventory system, which of the following statement is false?

A. The EOQ approach takes the viewpoint that some inventory is necessary.

B. The EOQ system assumes a constant order quantity.

C. JIT argues that inventory investments should be minimized.

D. The EOQ system focuse on acquistion and holding costs.

E. JIT argues that safety stocks are necessary to reduce the probability of a stock shortage.

4. Procust costing in manufacturing firm is the process of:

A. Accumulating the company ‘s period costs

B. Allocating costs among the firm departments.

C. Placing a value on the company’s fixed assets.

D. Assigning cost to the firm’s inventory.

E. Assinging costs to the comapny’s managers.

5.Decentralized firms can delegate authority by structuring an organization into responsibility centers. Which of the following organizational segments is most like a totally independent, standalone business where managers are expected to “make it on the own?

A. Cost center

B. Revenue Center

C. Profit Center

D. Investment center

E. Contribution center

6. Costs that are expensed when incurred are called:

A. Product costs

B. Direct Costs

C. Inventoriable Cost

D. Period Cost

E. Indirect costs

7. A budget serves as a benchmark against which:

A. Actual result can be compared

B. Allocated results can be compared

C. actual result be inconsequential

D. Alloated results become inconsequential.

E. Cash balances can be compared to expense totals.

8. Activity based costing system.

A. use a single volume based cost driver.

B. Assign overhead to product based on the products’ relative usage of direct labor.

C. often reveal products that were under or over costed by traditional costing.

D. Typically use fewer cost driver than more traditional costing system.

E . Have a tendency to distort product costs/

9.The point in a joint production process where each individual product becomes separately identifiable is commonly called the:

A. Decision point

B. Separation point

C. Individual product point

D. Split off point

E. Joint product point.

10.The RIO calculation will indicate:

A. the percentage of each sale dollar that is invested in assets.

B. The sale dollars generated from each dollar of income.

C.How effectively a company used its invested capital

D. the invested capital generated from each dollar of income

E. the overall quality of the company’s earnings.

ch6 7 if anyone can help with these t f questions i would appreciate it 448460

Aug 29, 2021 | Uncategorized

1.The costs assigned to units in inventory are typically lower under absorption costing than under variable costing.

TRUE OR FALSE

2. Under variable costing, product cost contains some fixed manufacturing overhead cost.

TRUE OR FALSE

3. Net operating income is affected by changes in production under both variable costing and absorption costing.

TRUE OR FALSE

4. Variable selling and administrative expenses are part of product costs under the variable costing approach.

TRUE OR FALSE

5. Under the absorption costing method, a company can increase profits by increasing production rather than by increasing sales.

TRUE OR FALSE

11. If a company switches from a traditional costing system to an activity based costing system in which some activities are batch level and product level, costs ordinarily shift from high volume to low volume products.

TRUE OR FALSE

accounting homework help 448461

Aug 29, 2021 | Uncategorized

1. Da Show Inc. owns and operates movie theaters throughout Texas and California. Da Show has declared the following annual dividends over a six year period: 2002, $18,000; 2003, $54,000; 2004, $70,000; 2005, $75,000; 2006, $80,000; and 2007, $90,000. During the entire period, the outstanding stock of the company was composed of 20,000 shares of cumulative, nonparticipating, 2% preferred stock, $100 par, and 25,000 shares of common stock, $10 par.

A. Calculate the total dividends and the per share dividends declared on each class of stock for each of the six years. There were no dividends in arrears on January 1, 2002. Summarize the data in tabular form, using the following column headings:

Total Preferred Dividends Common Dividends

Year Dividends Total Per Share Total Per Share

2002 $18,000

2003 54,000

2004 70,000

2005 75,000

2006 80,000

2007 90,000

B. Calculate the average annual dividend per share for each class of stock for the six year period.

tco h sub prime loan company is thinking of opening a new office and the key data a 448126

Aug 29, 2021 | Uncategorized

TCO H) Sub Prime Loan Company is thinking of opening a new office, and the key data are shown below. The company owns the building that would be used, and it could sell it for $100,000 after taxes, if it decides not to open the new office. The equipment for the project would be depreciated by the straight line method over the project’s three year life, after which it would be worth nothing, and thus it would have a zero salvage value. No new working capital would be required, and revenues and other operating costs would be constant over the project’s three year life. What is the project’s NPV? (Hint: Cash flows are constant in years 1 3.)
WACC
Opportunity cost
Net equipment cost (depreciable basis)
Straight line deprec. rate for equipment
Sales revenues, each year
Operating costs (excl. deprec.), each year
Tax rate 10.0%
$100,000
$65,000
33.333%
$123,000
$25,000
35%
a. $10,521
b. $11,075
c. $11,658
d. $12,271
e. $12,885

Indicate your choice for your answer a,b,c,d,e first and then show your work/explain your answer so as to earn partial credit in the event you selected the incorrect answer.

suppose first main street bank second republic bank and third fedelity bank all have 448134

Aug 29, 2021 | Uncategorized

Suppose First Main Street Bank, Second republic bank, and third fedelity bank all have excess reserves. The required ratio is 25%. The Federal Reserve buys a government bond worth $900,000 from Akshay, a client of First Main Street Bank. He deposits the money in his checking account at First Main Street Bank.

On the Assets side of First Main Street Bank’s balance sheet (before the bank makes any new loans), this (increases/decreases) First Main Street Bank’s (reserves?) by ($1,800,000/ $900,000 /$675,000 or $225,000). On the Liabilities side First Main Street Bank’s balance sheet, (increases/decreases) Fist Main Street Bank’s (checking account deposits) by ($225,000/ $675,000/$1,800,000/$900,000).

Because the required reserve ratio is 25%, the $900,000 deposit (increases/decreases) First Main Street Bank’s excess reserves by ($337,500/$450,000/$675,000/$0), and (decreases/increases) First Main Street Bank’s required reserves by ($225,000/$450,000/$900,000,$1,125,000)

Now, suppose First Main Street Bank loans out all of its new excess reserves to Eileen, who immediately uses the finds to write a check to Darnell. Darnell deposits the funds immediately into his checking account at Second Republic Bank. Then Second Republic Bank lends out all of its new excess reserves to Patrick, who write a check to Hannah, who deposits the money in her account at Third Fidelity Bank. Third Fidelity lends out all of its new excess reserves as well.

Bank (First main bank) (Second main bank) (Third Fidelity)

Inc. in checking account Deposits (First main bank) (Second main bank) (Third Fidelity)

Increase in Required Reserves (First main bank) (Second main bank) (Third Fidelity)

Increase in Loans (First main bank) (Second main bank) (Third Fidelity)

Assume this process continues, with each succesive loan deposited in a cjecking account and no banks keeping and excess reserves. Under these assumptions, the $900,000 injections into the money supply allows banks to make ($2,700,000/$3,600,000/$360,000/$22,500,… in new loans of ($2,700,000/$3,600,000/$360,000/$22,500,… in checking account deposits.

suppose first main street bank second republic bank and third fidelity bank all have 448135

Aug 29, 2021 | Uncategorized

Suppose first main street bank, second republic bank, and third fidelity bank all have zero excess reserves. the required reserve ratio is10%. the federal reserve buys a government bond worth $500,000 from Carlos, a client of First Main Street Bank. He deposits the money in his checking account at first main street bank

On the assets side of first pain street bank’s T accounts (before bank makes any new loans) this (a. increases, b. decreases) First Main street Bank’s (loans, demand deposits, reserves, net worth, building and furniture) by (500,000,, 450,000,,1.000.000,, 50,000). On the liabilities side first main street bank’s T account, this (increases, decreases) first main street bank’s (net worth, loans, reserves, demand deposits, building and furniture) by (500,000,, 450,000,, 1,000,000,, 50,000)

Because the required reserve ratio is 10%, the $500,000 deposit (increase, decreases) first main street bank’s excess reserved by ($0,, 450,000,, 400,000,, 250,000) and (increases, decreases) first main street bank’s required reserves by (500,000,, 450,000,, 1,000,000,, 50,000)

accounting 448184

Aug 29, 2021 | Uncategorized

Tanner UNF Corporation acquired as a long term investment $240 million of 6% bonds, dated July 1, on July 1, 2013. Company management has the positive intent and ability to hold the bonds until maturity, but when the bonds were acquired Tanner UNF decided to elect the fair value option for accounting for its investment. The market interest rate (yield) was 8% for bonds of similar risk and maturity. Tanner UNF paid $200 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2013, was $210 million.

1. Record the entry to recognize fair value changes as of December 31, 2013.

2. At what amount will Tanner UNF report its investment in the December 31, 2013, balance sheet?

3. Record the fair value changes as of December 31.

abc ltd manufactures a wide range of components for use in various industries 448207

Aug 29, 2021 | Uncategorized

ABC Ltd. manufactures a wide range of components for use in various industries. It has developed a new component called the UNITX. It is practice of ABC Ltd. to set a “list” selling price for its components and charge this price to all customers. It sells its components directly to customers all over the Malaysia and abroad.

ABC Ltd has surplus capacity available to enable it to produce up to 350,000 units per year without any need to acquire new facilities or cut back on the production of other products.

Market research indicates that the demand for units per year will move as follows in response to changes in selling prices.

At selling price of $9.00 per unit, no unit will be sold.
For every $0.03 the selling price is reduced below that figure sales will increase by 1000 units until total sales reach 100,000 units.
From the point, the selling price must be reduced by $0.04 for each additional 1000 units increase in sales.

Research into production costs indicates that the marginal costs for unit production in any given year are as follows.

Labour: initially $2.00 per unit but falling by $0.025 per unit for each extra 1,000 units produced, thus the first 1,000 units produced incurs a labour costs of $2,000, the second 1,000 units the labour cost of $1,975, and the third 1,000 units incurs a labour cost of $1,950 and so until output reaches 80,000; output can be increased beyond 80,000 units per year without incurring any additional labour costs.
Materials: $0.50 per unit constant at all levels of output.
Overhead: Initially $1.00 per unit and remaining constant until output reaches 100,000 units per year; the overhead cost per unit of producing at above that level rises by $0.25 for each extra 1,000 units produced, thus the 101^st thousand units produced incurs an overhead cost of $1,002.50, the 102^nd thousand units produced incurs an overhead cost of $1,005 and so on.

REQUIRED:

Calculate (accurate to the nearest cents) the selling price per unit that will maximise ABC Ltd’s profit from unit production.

(10 marks)

“There are various problems arising from setting a single price for your product and charging all customers the same. For one thing, you for go revenue from customers who would be prepared to pay a higher price. For another thing you turn away customers who would be prepared only to pay a lower a price but one which exceeds variable production costs.”

REQUIRED:

Discuss this statement with reference to ABC Ltd. and its sale of units.

(10 marks)

QUESTION 2

Sapura Plc makes a product using two material, A and B, in the production process. A system of standard costing and variance analysis is in operation. The standard material requirement per kg of mixed output is 60% material A at $30 per kg and 40% material B at $45 per kg with a standard yield of 90%.

The following information has been gathered for the three months January to March:

	January	February	March
Output achieved (kg)	810	765	900
Actual material input: A (kg) B (kg)	540 360	480 360	700 360
Actual material cost (A plus B ) ($)	42,400	31,560	38,600

The actual price per kg of material B throughout the January to March period was $45.

REQUIRED:

Prepare material variances for each of January, February and March period which include yield and mix variance in total usage and price variances for each material and in total.

(50 marks)

Prepare comments for management on each variance including variance trend.

(15 marks)

Discuss the relevance of the variance calculated above in the light of the following additional information.

The company has an agreement to purchase 360kg of material B each month and the perishable nature of the material means that it must be used in the month of purchase and additional supplies in excess of 360 tonnes per month are not available.

(15 marks)

(Total: 100 marks)

Attachments:

Individual as….doc

compute customer margin 448211

Aug 29, 2021 | Uncategorized

Thermal Rising, Inc., makes paragliders for sale through specialty sporting goods stores. The company has a standard paraglider model, but also makes custom designed paragliders. Management has designed an activity based costing system with the following activity cost pools and activity rates:

Activity Cost Pool	Activity Rate
Supporting direct labor	$16	per direct labor hour
Order processing	$202	per order
Custom designing processing	$254	per custom design
Customer service	$432	per customer

Management would like an analysis of the profitability of a particular customer, Big Sky Outfitters, which has ordered the following products over the last 12 months:

	Standard Model	Custom Design
Number of gliders	13	3
Number of orders	2	3
Number of custom designs	0	3
Direct labor hours per glider	28.5	34
Selling price per glider	$1,650	$2,390
Direct materials cost per glider	$480	$576

The company’s direct labor rate is $20 per hour.

Required:

Using the company’s activity based costing system, compute the customer margin of Big Sky Outfitters.(Negative amount should be indicated by a minus sign. Omit the “$” sign in your response.)

I’d love any help. I thought I did it correctly and came up with $1518 and it wasnt right, retried and came up with $7998 and still wasn’t correct! I’d love to see what im doing wrong.

problem 8 3 decision to admit a new partner profit allocation 448215

Aug 29, 2021 | Uncategorized

Thomas and Purnell are general partners in a partnership along with four limited partners. Ten percent of partnership profit is allocated to each of the limited partners, and the balance of the profits is allocated to Thomas and Purnell as follows:

1. Salaries of $40,000 and $60,000 to Thomas and Purnell, respectively.

2. A bonus to Thomas of 10% of sales in excess of $1,200.00

3. A bonus to Purnell of 5% of net income after the bonus.

4. Remaining profits to be allocated 60% and 40% respectively, to Thomas and Purnell.

The general partners have been approached by Wiggins, who has significant experience in the area of foreign sales and is seeking admission to partnership. Wiggins is confident that she can generate significant increases in sales and that any capital needed to finance the expansion will be raised and guaranteed by her. Furthermore, Wiggins is proposing that the existing profit agreement be modified as follows:

1. Wiggins will be allocated a salary of $40,000

2. A bonus to Wiggins of 15% of all international sales in excess of $500,000.

3. Thomas’s bonus will be limited to domestic sales only.

4. Remaining profits to be allocated 40%, 40%, and 20% to Thomas, Purnell, and Wiggins, respectively.

The limited partners are in favor of admitting Wiggins, noting that their opportunities for increased profits would be improved. However, Thomas and Purnell are concerned that unless sales and profits grow significantly, they will receive a smaller allocation of profits than they did before Wiggins. Without Wiggins, the partnership is projecting domestic sales and profits of $1,450,000 and $280,000, respectively, for the next year. Thomas and Purnell feel that if their interest in profits increases by $16,000 and $24,000 respectively, they will be inclined to admit WIggins as a partner.

Assume that Wiggins is able to generate $700,000 of additional foreign sales which include a 40% gross profit margin and that the general and administrative expenses associated with this increase are 15% of such sales. Prepare an analysis for Thomas and Purnell that summarizes their profit allocation with and without Wiggins.

the company applies variable overhead on the basis of direct labor hours the direct 448218

Aug 29, 2021 | Uncategorized

Tidd Corporation makes a product with the following standard costs:

Inputs	Standard Quantity or Hours	Standard Price or Rate	Standard Cost Per Unit
Direct materials	4.9 grams	$3.00 per gram	$14.70
Direct labor	0.6 hours	$16.00 per hour	$9.60
Variable overhead	0.6 hours	$3.00 per hour	$1.80

The company reported the following results concerning this product in November.

Originally budgeted output	8,500	units
Actual output	8,600	units
Raw materials used in production	44,690	grams
Purchases of raw materials	47,180	grams
Actual direct labor hours	7,750	hours
Actual cost of raw materials purchases	$132,320
Actual direct labor cost	$125,013
Actual variable overhead cost	$21,786

The company applies variable overhead on the basis of direct labor hours. The direct materials price variance is computed when the materials are purchased.

The variable overhead efficiency variance for November is what?

Without solutions, No rating.

gross estate 448223

Aug 29, 2021 | Uncategorized

At the time of his death, Nick owned the following property:

	Land held by Nick and his sister Ellen, as joint tenants with right of survivorship. The fair market value of the land on the date of Nicks death was $600,000, and the land was purchased by Nick for himself and his sister 20 years before his death for $150,000.

	Land held by Nick and Amy as tenants by the entirety. The fair market value of the land on the date of Nicks death was $800,000, and the land was purchased by Amy for Nick and Amy five years before Nicks death for $450,000.

	A one half undivided interest in land held with Lance as tenant in common. The fair market value of the land on the date of Nicks death was $400,000, and the land was purchased by Lance for Nick and Lance four years before Nicks death for $300,000.

	City of Dayton bonds worth $500,000 purchased by Nick five years before his death, and titled in Nicks sole name.

What amount is includible in Nicks gross estate assuming alternate valuation is not available to Nicks estate?

a. $800,000.

b. $1,100,000.

c. $1,200,000.

d. $1,700,000.

accounting 448224

Aug 29, 2021 | Uncategorized

Tina’s Fine Juices is a bottler of orange juice. The company produces bottled orange juice from fruit concentrate purchased from suppliers in Arizona and California. The only ingredients in the juice are water and concentrate. The juice is blended, pasteurized and bottled for sale in 12 ounce plastic bottles. The process is heavily automated and is centered on five machines that control the mixing and bottling of the juice. Each machine is run by one employee and can process 10 bottles of juice per minute, or 600 bottles per hour. The juice is sold by several grocery stores under their store brand name and in smaller restaurants, delis, and bagel shops. Tina has been in business for several years and uses a sophisticated sales forecasting model based on prior sales, expected changes in demand, and economic factors affecting the industry. Sales of juice are highly seasonal, peaking in the first quarter of the year. Forecasted sales, in bottles, for the first quarter are as follows: January February March 250,000 325,000 450,000 Tina sells the juice for $1.05 per bottle, in cases of 50 bottles. In proper order and form, project a sales budget for the 1st quarter. _________________________________________________ _________________________________________________ _________________________________________________ January February March 1st Qtr Forecasted Units _________ _________ _________ _________ Unit Selling Price _________ _________ _________ _________ Budgeted Sales _________ _________ _________ _________ Budget EOC Production Budget Tina tries to maintain at least 10% of next month’s sales forecast in inventory at the end of each month. Because sales have been projected to increase dramatically, the company does not want to run the risk of running out of juice to customers. The beginning inventory for January was 25,000 bottles, and April sales are forecasted at 500,000 bottles. In proper order and form, project a production budget for the 1st quarter. Assume all of the information from the sales budget still applies.(ROUND ALL CALCULATIONS TO THE NEAREST WHOLE DOLLAR) _________________________________________________ _________________________________________________ _________________________________________________ January February March 1st Qtr Budgeted Sales (Units or $)? _________ _________ _________ _________ Desired Ending Inventory _________ _________ _________ _________ Total Production Needs _________ _________ _________ _________ Less: Beginning Inventory _________ _________ _________ _________ Required Production _________ _________ _________ _________ Budget Project Direct Materials Budget Tina needs to prepare two purchases budgets; one for concentrate used in the orange juice and one for the bottles that are purchased from outside suppliers. (NOTE: YOU ARE ONLY REQUIRED TO COMPLETE A PURCHASES BUDGET FOR CONCENTRATE.) It takes one gallon of orange concentrate for every 32 bottles of finished product. Each gallon of concentrate costs $4.80. It takes one bottle for each unit produced. Each bottle costs $0.10. Tina requires that 20% of next month’s direct materials need to be on hand at the end of each budget period. Projected orange concentrate needed for April is 15,315 gallons. Projected bottles needed for April is 490,000. January beginning inventory of orange concentrate is 1,609 gallons. January beginning inventory of bottles is 51,500. In proper order and form, project a direct materials budget for concentrate (YOU ARE NOT REQUIRED TO COMPLETE A BUDGET FOR BOTTLES) Assume all of the information from the sales/production budgets still applies. _________________________________________________ _________________________________________________ _________________________________________________ January February March 1st Qtr Units to be Produced _________ _________ _________ _________ Bottles Per Gallon _________ _________ _________ _________ Production Needs _________ _________ _________ _________ Add: Desired Ending Inventory _________ _________ _________ _________ Total Budget Needs _________ _________ _________ _________ Less: Beginning Inventory _________ _________ _________ _________ Concentrate to be Purchased _________ _________ _________ _________ Cost Per Gallon _________ _________ _________ _________ Total Purchase Cost _________ _________ _________ _________

please show all work 448226

Aug 29, 2021 | Uncategorized

Tonga Toys manufactures and distributes a number of products to retailers. One of these products, Playclay, requires two pounds of material A135 in the manufacture of each unit. The company is now planning raw materials needs for the third quarter%u2014July, August, and September. Peak sales of Playclay occur in the third quarter of each year. To keep production and shipments moving smoothly, the company has the following inventory requirements:

a.	The finished goods inventory on hand at the end of each month must be equal to 8,000 units plus 33% of the next month%u2019s sales. The finished goods inventory on June 30 is budgeted to be 19,880 units.
b.	The raw materials inventory on hand at the end of each month must be equal to one half of the following month%u2019s production needs for raw materials. The raw materials inventory on June 30 for material A135 is budgeted to be 39,300 pounds.
c.	The company maintains no work in process inventories.

A sales budget for Playclay for the last six months of the year follows.

	Budgeted Sales in Units
July	36,000
August	46,000
September	66,000
October	31,000
November	16,000
December	6,000

Required:
1.	Prepare a production budget for Playclay for the months July, August, September, and October. (Input all amounts as positive values. Do not round intermediate calculations.)

Playclay Production Budget
	July	August	September	October
Budgeted sales
(Click to select) Deduct Add : (Click to select) Ending inventory Beginning inventory

Total needs
(Click to select) Add Deduct : (Click to select) Ending inventory Beginning inventory

Required production

3.	Prepare a direct materials budget showing the quantity of material A135 to be purchased for July, August, and September and for the quarter in total. (Input all amounts as positive values. Do not round intermediate calculations.)

Playclay Direct Materials Budget
	July	August	September	Third Quarter
Production needs
(Click to select) Add Deduct : (Click to select) Ending inventory Beginning inventory

Total Material A135 needs
(Click to select) Deduct Add : (Click to select) Beginning inventory Ending inventory

Material A135 purchases

check my workreferencesebook & resources

financial accounting transaction 2 448236

Aug 29, 2021 | Uncategorized

Transaction 2
The corporation quickly acquired $40,000 in inventory, 40% of which was paid for in cash. The rest was acquired on open accounts that were payable after 30 days.

Options for Account portion:

Cash

Accounts Recievable

Inventory

Prepaid Rent

Fixtures and Equipment

Accounts Payable

Interest Payable

Wages Payable

Notes Payable

Paid In Capital

Retained Earnings

Leave Blank

Account: Dollar Amount:

Thank you for your help 🙂

financial accounting 7 448247

Aug 29, 2021 | Uncategorized

Transaction 7

Miscellaneous expenses paid for in cash were $1,700.

Account: Dollar amount:

For account parts, you should choose from options below:

Cash,
Accounts Receivable,
Inventory,
Prepaid Rent,
Fixtures and equipments,
Accounts Payable,
Interest Payable,
Wages Payable,
Notes Payable,
Paid in Capital,
Retained Earnings,
Leave Bank

prepare a common size balance sheet please show calculations thanks 448296

Aug 29, 2021 | Uncategorized

Use the following consolidated balance sheet for Intel Corporation annual report.

INTEL CORPORATION CONSOLIDATED BALANCE SHEET December 29, 2008 (In Millions, Except Par Value)
	Assets
	Current assets:
	Cash and cash equivalents	$	8,030
	Short term investments		5,518
	Trading assets		2,695
	Accounts receivable, net of allowance for doubtful accounts of $17 ($27 in 2008)		2,923
	Inventories		2,493
	Deferred tax assets		932
	Other current assets		292

	Total current assets		22,883

	Property, plant and equipment, (net)		16,170
	Marketable strategic equity securities		566
	Other long term investments		1,872
	Goodwill		3,766
	Other long term assets		2,303

	Total assets	$	47,560

	Liabilities and stockholders’ equity
	Current liabilities:
	Short term debt	$	234
	Accounts payable		1,679
	Accrued compensation and benefits		1,510
	Accrued advertising		764
	Deferred income on shipments to distributors		623
	Other accrued liabilities		1,331

	Total current liabilities		6,141

	Long term income taxes payable		785
	Deferred tax liabilities		89
	Long term debit		910
	Other long term liabilities		1,450
	Commitments and contingencies (Notes 18 and 24)
	Stockholders’ equity:
	Preferred stock, $0.001 par value, 50 shares authorized; none issued
	Common stock, $0.001 par value, 10,000 shares authorized; 5,562 issued and outstanding(5,818 in 2008) and capital in excess of par value		6,762
	Accumulated other comprehensive income (loss)		99
	Retained earnings		31,324

	Total stockholders’ equity		38,185

	Total liabilities and stockholders’ equity	$	47,560

Required:

Prepare a common size balance sheet at December 29, 2008. (Round your answers to 1 decimal place. Omit the “%” sign in your response.)

INTEL CORPORATION Common Size Balance Sheet December 29, 2008
Total current assets	%
Property, plant and equipment, (net)
Marketable strategic equity securities and other long term investments
Goodwill and other long term assets, net

Total assets	%

Total current liabilities	%
Total long term liabilities (including deferred income tax liabilities)
Total stockholders’ equity

Total liabilities and stockholders’ equity	%

managerial accounting 448300

Aug 29, 2021 | Uncategorized

Use the following information for Hayes, Inc., as of December 31 to answer the next questions:

Administrative salaries $ 32,000

Depreciation of factory equipment 25,000

Depreciation of delivery vehicles 8,000

Direct Labor 68,000

Factory supplies used 12,000

Finished goods inventory, January 1 57,000

Finished goods inventory, December 31 68,000

Factory insurance15,500

Interest expense 12,000

Factory utilities 14,000

Factory maintenance 7,500

Raw materials inventory, January 1 8,000

Raw materials inventory, December 314,000

Raw material purchases 125,000

Rent on factory building25,000

Repairs of factory equipment11,500

Sales commissions 37,500

Goods in process inventory, January 1 3,500

Goods in process inventory, December 312,000

1. What is the correct amount of Cost of Goods Manufactured based on the Hayes, Inc. information?

$398,500

$386,000

$309,000

$306,000

$296,500

2. What is the total amount of manufacturing costs added to Goods In Process during the period?

$393,000

$325,000

$389,500

$397,000

$307,500

3. What is the correct amount of overhead based on the Hayes Inc. information?

$192,000

$110,500

$200,000

$150,000

$77,500

PLEASE SHOW WORK

acct 203 steps 448301

Aug 29, 2021 | Uncategorized

Use the following table,

Present Value of an Annuity of 1

Periods	8%	9%	10%
1	.926	.917	.909
2	1.783	1.759	1.736
3	2.577	2.531	2.487

A company has a minimum required rate of return of 9%. It is considering investing in a project which costs $840,000 and is expected to generate cash inflows of $336,000 at the end of each year for three years. The net present value of this project is

$850,416.

$504,000.

$85,032.

$10,416.

cost volume profit 448304

Aug 29, 2021 | Uncategorized

Use the sub navigation below to navigate within this series of questions.

Marlin Company, a wholesale distributor, has been operating for only a few months. The company sells three products%u2014sinks, mirrors, andvanities. Budgeted sales by product and in total for the coming month are shown below:

Product

	Sinks			Mirrors			Vanities			Total
Percentage of total sales		48%			20%			32%			100%
Sales	$	240,000	100%	$	100,000	100%	$	160,000	100%	$	500,000	100%
Variable expenses		72,000	30%		80,000	80%		88,000	55%		240,000	48%

Contribution margin	$	168,000	70%	$	20,000	20%	$	72,000	45%		260,000	52%
Fixed expenses											223,600

Net operating income										$	36,400

Dollar sales to break even	=	Fixed expenses	=	$223,600	= $430,000
		CM ratio		0.52

As shown by these data, net operating income is budgeted at $36,400 for the month, and break even sales at $430,000.

Assume that actual sales for the month total $500,000 as planned. Actual sales by product are: sinks, $160,000; mirrors, $200,000; and vanities, $140,000.

Required:
1.	Prepare a contribution format income statement for the month based on actual sales data. (Input all amounts as positive values except losses which should be indicated by minus sign. Omit the “$” and “%” signs in your response.)

	Product
	Sinks		Mirrors		Vanities		Total
Percentage of total sales	%		%		%		%
(Click to select) Net operating income (loss) Contribution margin Fixed expenses Variable expenses Sales	$	%	$	%	$	%	$	%
(Click to select) Net operating income (loss) Fixed expenses Variable expenses Sales Contribution margin		%		%		%		%

(Click to select) Sales Net operating income (loss) Fixed expenses Variable expenses Contribution margin	$	%	$	%	$	%		%
(Click to select) Net operating income (loss) Contribution margin Sales Variable expenses Fixed expenses

(Click to select) Sales Fixed expenses Net operating income (loss) Contribution margin Variable expenses							$

2.	Compute the break even point in sales dollars for the month, based on your actual data. (Omit the “$” sign in your response.)

Break even point in sales dollars

$

cost volume profit 448305

Aug 29, 2021 | Uncategorized

Use the sub navigation below to navigate within this series of questions.

Maxson Products distributes a single product, a woven basket whose selling price is $29 and whose variable cost is $20.3 per unit. The company%u2019s monthly fixed expense is $21,750.

Required:
1.	Compute for the company%u2019s break even point in unit sales using the equation method.

Break even point in unit sales

baskets

2.	Compute for the company%u2019s break even point in sales dollars using the equation method and the CM ratio. (Do not round intermediate calculations. Round your CM ratio to 2 decimal places. Omit the “$” sign in your response.)

CM ratio
Break even point in dollar sales	$

3.	Compute for the company%u2019s break even point in unit sales using the formula method.

Break even point in unit sales

baskets

4.	Compute for the company%u2019s break even point in sales dollars using formula method and the CM ratio. (Do not round intermediate calculations. Round your CM ratio to 2 decimal places. Omit the “$” sign in your response.)

CM ratio
Break even point in dollar sales	$

accounting help utease corporation has many production plants across the midwestern 448308

Aug 29, 2021 | Uncategorized

Utease Corporation has many production plants across the midwestern United States. A newly opened plant, the Bellingham plant, produces and sells one product. The plant is treated, for responsibility accounting purposes, as a profit center. The unit standard costs for a production unit, with overhead applied based on direct labor hours, are as follows:

Manufacturing costs (per unit based on expected activity of 12,000 units or 19,200 direct labor hours):

Direct materials (2.1 pounds at $20) $ 42

Direct labor (1.6 hours at $60) 96

Variable overhead (1.6 hours at $20) 32

Fixed overhead (1.6 hours at $30) 48

Standard cost per unit $ 218

Budgeted selling and administrative costs:

Variable $ 5 per unit

Fixed $ 1,000,000

Expected sales activity: 8,000 units at $400 per unit

Desired ending inventories: 10% of sales

Assume this is the first year of operations for the Bellingham plant. During the year, the company had the following activity:

Units produced 11,000

Units sold 9,500

Unit selling price $ 395

Direct labor hours worked 17,100

Direct labor costs $ 1,043,100

Direct materials purchased 27,100 pounds

Direct material costs $ 542,000

Direct material used 27,100 pounds

Actual fixed overhead $ 280,000

Actual variable overhead $ 284,000

Actual selling and administrative costs $ 1,340,000

In addition, all over or underapplied overhead and all product cost variances are adjusted to cost of goods sold.

a.

Prepare a production budget for the coming year based on the available standards, expected sales, and desired ending inventories. (Leave no cells blank be certain to enter “0” wherever required. Omit the “$” sign in your response.)

Units

$

Planned Production of Finished Goods $

b.

Prepare a budgeted responsibility income statement for the Bellingham plant for the coming year. (Input all amounts as positive values. Omit the “$” sign in your response.)

BELLINGHAM PLANT

Budgeted Income Statement

Year Ending December 31, 20__

$

Operating Expenses:

$

Total Operating Expense $

$

c.

Find the direct labor variances. Indicate if they are favorable or unfavorable and why they would be considered as such. (Indicate the effect of each variance by selecting Favorable, Unfavorable, and “None” for no effect. Negative amounts should be indicated by a minus sign. Omit the “$” sign in your response.)

Direct labor variances

Labor efficiency variance $

Labor rate variance $

d.

Find the direct materials variances (materials price variance and quantity variance). (Leave no cells blank be certain to enter “0” wherever required. Indicate the effect of each variance by selecting Favorable, Unfavorable, and “None” for no effect (i.e., zero variance). Input all amounts as positive values. Enter your answers in dollars not in pounds. Omit the “$” sign in your response.)

Direct material variances

Material quantity variance $

Material price variance $

Find the total over or underapplied (both fixed and variable) overhead. Would cost of goods sold be a larger or smaller expense item after the adjustment for over or underapplied overhead? (Omit the “$” sign in your response.)

overhead $

e 2

Would cost of goods sold be a larger or smaller expense item after the adjustment for over or underapplied overhead?

Smaller expense

Larger expense

f.

Calculate the actual plant operating profit for the year. (Omit the “$” sign in your response.)

Operating profit $

g.

Prepare a flexible budget for the Bellingham plant for its first year of operations. (Input all amounts as positive values. Omit the “$” sign in your response.)

$

Flexible budget variance $

Master budget variance $

h.

Assume Utease Corporation is planning to change its evaluation of business operations in all plants from the profit center format to the investment center format. If the average invested capital at the Bellingham plant is $8,970,000, compute the return on investment (ROI) for the first year of operations. Use the DuPont method of evaluation to compute the return on sales (ROS) and capital turnover (CT) for the plant. (Round your answers to 2 decimal places. Omit the “%” sign in your response.)

ROI %

ROS %

Capital Turnover %

i

Assume that under the investment center evaluation plan the plant manager will be awarded a bonus based on ROI. If the manager has the opportunity in the coming year to invest in new equipment for $500,000 that will generate incremental earnings of $80,000 per year, would the manager undertake the project?

No

Yes

mgr accnt homework question 448313

Aug 29, 2021 | Uncategorized

VaultOnWheels Corporation operates a fleet of armored cars that make scheduled pickups and deliveries for its customers in the Phoenix area. The company is implementing an activity based costing system that has four activity cost pools: Travel, Pickup and Delivery, Customer Service, and Other. The activity measures are miles for the Travel cost pool, number of pickups and deliveries for the Pickup and Delivery cost pool, and number of customers for the Customer Service cost pool. The Other cost pool has no activity measure because it is an organization sustaining activity. The following costs will be assigned using the activity based costing system:


Driver and guard wages	$	900,000
Vehicle operating expense		330,000
Vehicle depreciation		210,000
Customer representative salaries and expenses		240,000
Office expenses		100,000
Administrative expenses		400,000

Total cost	$	2,180,000

The distribution of resource consumption across the activity cost pools is as follows:

	Travel		Pickup and Delivery		Customer Service		Other		Totals
Driver and guard wages	40	%	45	%	10	%	5	%	100	%
Vehicle operating expense	75	%	5	%	0	%	20	%	100	%
Vehicle depreciation	70	%	10	%	0	%	20	%	100	%
Customer representative salaries and expenses	0	%	0	%	85	%	15	%	100	%
Office expenses	0	%	25	%	35	%	40	%	100	%
Administrative expenses	0	%	5	%	55	%	40	%	100	%

Required:

Complete the first stage allocations of costs to activity cost pools. (Leave no cells blank be certain to enter “0” wherever required. Omit the “$” sign in your response.)

	Travel	Pickup and Delivery	Customer Service	Other	Totals
Driver and guard wages	$	$	$	$	$
Vehicle operating expense
Vehicle depreciation
Customer representative salaries and expenses
Office expenses
Administrative expenses

Total cost	$	$	$	$	$

financial management 283532

Aug 29, 2021 | Uncategorized

Question 1(4 marks) Briefly explain the key objective of corporate financial management and why this might not be the same as maximising accounting profit.

Question 2(4 marks) For the year ended 30 June 2012, a sole trader earned $240,000 in revenue and incurred operating and depreciation expenses of $100,000 and $20,000 respectively. The trader also received fully franked dividends of $30,000 and unfranked dividends of $10,000 from investments in blue chip companies. What the trader’s (a) income tax liability and (b) after tax income? [Ignore Medicare levy]. Please refer to Individual income tax rate 2012 13

Taxable income	Tax on this income
0 $18,200	Nil
$18,201 $37,000	19c for each $1 over $18,200
$37,001 $80,000	$3,572 plus 32.5c for each $1 over $37,000
$80,001 $180,000	$17,547 plus 37c for each $1 over $80,000
$180,001 and over	$54,547 plus 45c for each $1 over $180,000

Question 3(4 marks) Briefly describe the principal characteristics of primary and secondary capital markets. Give example of recent initial public offering of shares/bonds in Australian market.

Question 4(4 marks) (a) You plan to save $30,000 after two years to purchase a band new car you’ve always wanted. The bank is currently offering 6% interest rate on deposit per annum compounded quarterly. How much would you have to invest today? (b) Assume you borrowed a sum of $30,000 repayable by six equal quarterly instalments (loan repayments) at an interest rate of 8% per annum (2% per quarter). What is the necessary loan payment at the end of each quarter?

Question 5(4 marks) (a) If the current market yield for 90 day bank accepted bills 4.2%, the market price of a $2,000,000 would be? (b) Basis of credit analysis for some time has been the so called ‘five Cs of credit’. In your own words elaborate the five Cs of credit. If you were assessing a loan application, what would be the most important C and why?
Question 6 (4 marks) Briefly explain the significance of systematic risk and how it is measured.

Question 7(4 marks) Briefly explain the inverse relation between price and yield in the bond market.

Question 8(4 marks) Bathurst Copper Mine is experiencing a period of rapid growth due to demands from China. Earnings and dividends are expected to grow at a rate of 24% over the next two years, 16% in third year and then at a constant rate of 6% thereafter. Bathurst Copper Mine’s last dividend which has been paid was $1.15 If the required rate of return on the stock is 14%, what is the price of the stock today?

Question 9(4 marks) (a) If a company is considering investing $200,000 in new equipment, for which the expected cash flows are as follows:
CASH FLOW Initial outlay $150,000 Year 1 $50,000 Year 2 $40,000 Year 3 $30,000 Year 4 $20,000 Year 5 $20,000 If the company has an 18% required rate of return, should this project be accepted? (b)A company must invest in either of the following two projects.
Project A Project B Initial Outlay $100,000 $150,000 Useful Life 5 years 5 years Net Present Value 130,000 $140,000 If the required rate of return is 12% which project should the company accept?
Question 10(4 marks) ABC Ltd is considering two mutually exclusive projects. The cash flows associated with the projects are as follows:
Year Project A Project B 0 $150000 $150,000 1 $45,000 $0 2 $45,000 $0 3 $45,000 $0 4 $45,000 $80,000 5 $45,000 $200,000 The required rate of return on these projects is 12%. (a)What is each project’s payback period? (b)What is each project’s net present value? (c)What is each project’s internal rate of return? (d)What has caused ranking conflict? (e)Which project should be accepted? Why?
Marking criteria

Where necessary, state any assumptions you have made. Assignments should show all workings and students will be penalized for failing to do this.

You will be assessed on:

your understanding of the problem;
your choice of method for solving the problem;
your application of techniques;
the accuracy of your answers;
written communication skills;
critical thinking and analysis.

Question 11 (5 marks) Briefly define sensitivity analysis and steps involving use of it. In your own words why do you think it is important to use sensitivity analysis in assessing a project?
Question1 2 (5 marks) Calculate the firm’s Weighted Average Cost of Capital:
Source of Finance Market Value Cost Bank Overdraft $400,000 6% Preference Shares $200,000 16% Ordinary Shares $1,200,000 12% Debentures $500,000 8% Trade Creditors (average) $100,000 5%

Question 13(5 marks) (a)What are the main features of debt funds and equity funds? (b)In your own words briefly state the advantages and disadvantages of both debt and equity instruments.
Question 14(5 marks) A company is considering raising $12 million through a rights issue. It has 10 million ordinary shares outstanding, currently selling for $8.40 each. The subscription price on the new shares will be $6 per share. i. How many shares must be sold to raise the desired funds? ii. How many shares must a shareholder own in order to have one right? iii. What is the theoretical value of the shares ex rights? iv. What is the value of the right? Rationale

This assignment is designed to assess student learning of the material covered in Weeks 7 11.

Marking criteria

Where necessary, state the assumptions you have made. All workings must be shown and students will be penalised for failing to do this.

You will be assessed on:

your understanding of the problem;
your choice of method for solving the problem;
your application of techniques;
the accuracy of your answers;
written communication skills;
critical thinking and analysis.

mary walker president of rusco products considers 14 000 283533

Aug 29, 2021 | Uncategorized

Mary Walker, president of Rusco Products, considers $14,000 to be the minimum cash balance for operating purposes. As can be seen from the following statements, only $8,000 in cash was available at the end of 2009. Since the company reported a large net income for the year, and also issued both bonds and common stock, the sharp decline in cash is puzzling to Ms. Walker.

The following additional information is available for the year 2009.

Dividends totaling $9,000 were declared and paid in cash.

Equipment was sold during the year for $8,000. The equipment had originally cost $20,000 and had accumulated depreciation of $10,000.

The decrease in the Preferred Stock account is the result of a conversion of preferred stock into an equal dollar amount of common stock.

Long term investments that had cost $20,000 were sold during the year for $30,000.

Required:

Using the indirect method, compute the net cash provided by operating activities for 2009.

Using the data from (1) above, and other data from the problem as needed, prepare a statement of cash flows for 2009.

Compute free cash flow for 2009.

Explain the major reasons for the decline in the company’s cashbalance.

multiple choice questions 1 which item is added to net 283550

Aug 29, 2021 | Uncategorized

Multiple Choice Questions

1. Which item is added to net income when computing cash flows from operating activities?

a. Gain on the sale of property, plant, and equipment

b. Increase in wages payable

c. Increase in inventory

d. Increase in prepaid rent

2. Cornett Company reported the following information: cash received from the issuance of common stock, $125,400; cash received from the sale of equipment, $23,700; cash paid to purchase an investment, $13,500; cash paid to retire a note payable, $50,000; cash collected from sales to customers, $248,000. What amount should Cornett report on its statement of cash flows as net cash flows from investing activities?

a. $10,200

b. $75,400

c. $85,600

d. None of the above

3. Use the same information as in Multiple Choice Exercise 11 9. What amount should Cornett report on its statement of cash flows as net cash flows from financing activities?

a. $10,200

b. $75,400

c. $85,600

d. None of the above

4. Chasse Building Supply Inc. reported net cash provided by operating activities of $256,000, capital expenditures of $124,900, cash dividends of $33,200, and average maturities of long term debt over the next five years of $134,300. What is Chasse’s free cash flow and cash flow adequacy ratio?

a. $97,900 and 0.73, respectively

b. $97,900 and 1.91, respectively

c. $131,100 and 0.98, respectively

d. $164,300 and 1.22, respectively

5. Smoltz Company reported the following information for the current year: cost of goods sold, $347,000; increase in inventory, $14,700; and increase in accounts payable, $8,200. What is the amount of cash paid to suppliers that Smoltz would report on its statement of cash flows under the direct method?

a. $324,100

b. $340,500

c. $353,500

d. $369,900

6. Romo Inc. reported the following information for the current year: operating expenses, $210,000; decrease in prepaid expenses, $4,900; and increase in accrued liabilities, $6,100. What is the amount of cash paid for operating expenses that Romo would report on its statement of cash flows under the direct method?

a. $199,000

b. $208,800

c. $211,200

d. $221,000

Aug 29, 2021 | Uncategorized

v

Multiple Choice Question 49

Reed Company acquires 80 Holmes 10%, 5 year, $1,000 bonds on January 1, 2012 for $82,000. This includes a brokerage commission of $2,000. The journal entry to record this investment includes a debit to

Cash for $82,000.

Stock Investments for $80,000.

Debt Investments for $80,000.

		Debt Investments for $82,000.
Multiple Choice Question 51

Reed Company acquires 80 Holmes 10%, 5 year, $1,000 bonds on January 1, 2012 for $82,000. This includes a brokerage commission of $2,000. If Reed sells all of its Holmes Bonds for $83,200 and pays $2,400 in brokerage commissions, what gain or loss is recognized?

Gain of $3,200

Loss of $1,200

Gain of $1,200

		Gain of $4,800
Multiple Choice Question 54

On January 1, 2012, the Borth Company purchased at face value, a $1,000, 6%, bond that pays interest on January 1 and July 1. Borth Company has a calendar year end. The adjusting entry on December 31, 2012, is

Interest Receivable	30
Debt Investments		30

Cash	30
Interest Revenue		30

not required.

Interest Receivable	30
Interest Revenue		30

Multiple Choice Question 75

On August 1, Dogwood Company buys 2,000 shares of XYZ common stock for $60,000 cash plus brokerage fees of $1,200. On December 1, the stock investments are sold for $76,000 in cash. Which of the following are the correct journal entries of record for the purchase and sale of the common stock?

Aug. 1	Cash	61,200
	Stock Investments		61,200
Dec. 1	Stock Investment	76,000
	Cash		61,200
	Gain on Sale of Stock Investments		14,800

Aug. 1	Cash	61,200
	Stock Investments		61,200
Dec. 1	Cash	76,000
	Stock Investments		61,200
	Gain on Sale of Stock Investments		14,800

Aug. 1	Stock Investments	61,200
	Cash		61,200
Dec. 1	Stock Investment	76,000
	Cash		61,200
	Gain on Sale of Stock Investments		14,800

Aug. 1	Stock Investments	61,200
	Cash		61,200
Dec. 1	Cash	76,000
	Stock Investments		61,200
	Gain on Sale of Stock Investments		14,800

Multiple Choice Question 76

Lanier Industries owns 45% of McCoy Company. For the current year, McCoy reports net income of $250,000 and declares and pays a $60,000 cash dividend. Which of the following correctly presents the journal entries to record Lanier’s equity in McCoy’s net income and the receipt of dividends from McCoy?

Dec. 31	Stock Investments	112,500
	Revenue from Investment in McCoy Company		112,500
Dec. 31	Cash	60,000
	Stock Investments		60,000

Dec. 31	Revenue from Investment in McCoy Company	112,500
	Stock Investments		112,500
Dec. 31	Stock Investments	27,000
	Cash		27,500

Dec. 31	Stock Investments	85,500
	Revenue from Investment in McCoy Company		85,500

Dec. 31	Stock Investments	112,500
	Revenue from Investment in McCoy Company		112,500
Dec. 31	Cash	27,000
	Stock Investments		27,000

Multiple Choice Question 77

On January 1, 2012, Bartley Corp. paid $1,200,000 for 100,000 shares of Oak Company’s common stock, which represents 40% of Oak’s outstanding common stock. Oak reported income of $300,000 and paid cash dividends of $90,000 during 2012 Bartley should report the investment in Oak Company on its December 31, 2012, balance sheet at

$1,284,000

$1,236,000

$1,200,000

		$1,116,000
Multiple Choice Question 83

Terrell Corporation makes an investment in 200 shares of Simpson Company’s common stock. The stock is purchased for $50 a share plus brokerage fees of $800. The entry for the purchase is:

Stock Investments	10,000
Cash		10,000

Debt Investments	10,000
Cash		10,000

Stock Investments	10,800
Cash		10,800

Stock Investments	10,000
Brokerage Fee Expense	800
Cash		10,800

Multiple Choice Question 85

For accounting purposes, the method used to account for investments in common stock is determined by

whether the stock has paid dividends in past years.

whether the acquisition of the stock by the investor was “friendly” or “hostile.”

the amount paid for the stock by the investor.

		the extent of an investor’s influence over the operating and financial affairs of the investee.
Multiple Choice Question 86

Hamilton Corporation sells 200 shares of common stock being held as an investment. The shares were acquired six months ago at a cost of $40 a share. Hamilton sold the shares for $45 a share. The entry to record the sale is

Cash	9,000
Gain on Sale of Stock Investments		1,000
Stock Investments		8,000

Stock Investments	8,000
Loss on Sale of Stock Investments	1,000
Cash		9,000

Cash	9,000
Stock Investments		9,000

Cash	8,000
Loss on Sale of Stock Investments	1,000
Stock Investments		9,000

Multiple Choice Question 96

Under the cost method of accounting for dividends

Investment Revenue is credited when dividends are received.

the Investment account is credited when the investee reports a net income.

the Investment account is credited when dividends are received.

		Investment Revenue is credited when the investee reports a net income.
Multiple Choice Question 107

Hagan Company owns 10% interest in the stock of Nelsen Corporation. During the year, Nelsen pays $80,000 in dividends to Hagan, and reports $400,000 in net income. Hagan Company’s investment in Nelsen will increase Hagan net income by

$80,000.

$40,000.

$96,000.

		$8,000.
Multiple Choice Question 120

If a stock investment is sold at a gain, the gain

is reported in the Other Revenue and Gain section of the income statement.

contributes to gross profit on the income statement.

is reported under a special section, “Discontinued investments,” on the income statement.

		is reported as operating revenue.
Multiple Choice Question 131

When a company owns more than 50% of the common stock of another company

they recognize revenue when dividends are received.

consolidated financial statements are usually prepared.

they are referred to as the subsidiary.

		the cost method of accounting is used.
Multiple Choice Question 132

The company whose stock is owned by the parent company is called the

investee company.

sibling company.

controlled company.

		subsidiary company.
Multiple Choice Question 137

In recognizing a decline in the fair value of short-term stock investments, an Unrealized Loss account is debited because

management intends to realize this loss in the near future.

the securities have not been sold.

the stock market is volatile.

		management cannot determine the exact amount of the loss in value.
Multiple Choice Question 140

At the end of the first year of operations, the total cost of the trading securities portfolio is $180,000 and the total fair value is $174,000. What should the financial statements show?

A reduction of an asset of $6,000 and an unrealized loss of $6,000 in the stockholders’ equity section.

A reduction of an asset of $6,000 in the current assets section and an unrealized loss of $6,000 under “Other expenses and losses.”

A reduction of an asset of $6,000 and a realized loss of $6,000.

		A reduction of an asset of $6,000 in the current assets section and a realized loss of $6,000 under “Other expenses and losses.”
Multiple Choice Question 148

Which of the following would not be reported under “Other Revenues and Gains” on the income statement?

Gain on sale of debt investments.

Interest revenue.

Unrealized gain on available-for-sale securities.

		Dividend revenue.
Multiple Choice Question 149

If the cost of an available-for-sale security exceeds its fair value by $40,000, the entry to recognize the loss

will show a credit to a valuation allowance account that appears in the stockholders’ equity section of the balance sheet.

will show a debit to an unrealized loss account that is deducted in the stockholders’ equity section of the balance sheet.

is not required since the share prices will likely rebound in the long run.

		will show a debit to an expense account.
Multiple Choice Question 159

At December 31, 2012, the trading securities for Mayfair, Inc. are as follow

		Fair Value
Security	Cost	12/31/12
X	$90,000	$92,000
Y	150,000	142,000
Z	32,000	28,000

Mayfair should report the following amount related to the securities transactions in its 2012 income statement

$2,000 gain.

$10,000 realized loss.

$12,000 unrealized loss.

$10,000 unrealized loss.

Attachments:

Appendix-E-qu….docx

test question 283822

Aug 29, 2021 | Uncategorized

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Problem 16 9

The comparative balance sheet of Posner Company, for 2011 and the preceding year ended December 31, 2010, appears below in condensed form:

The income statement for the current year is as follows:

Additional data for the current year are as follows:

Fully depreciated equipment costing $60,000 was scrapped, no salvage, and equipment was purchased for $183,200.
Bonds payable for $100,000 were retired by payment at their face amount.
5,000 shares of common stock were issued at $13 for cash.
Cash dividends declared and paid, $25,000.

Hide

Prepare a statement of cash flows, using the indirect method of reporting cash flows from operating activities.

Posner Company

Statement of Cash Flows

For the Year Ended December 31, 2011

Cash flows from operating activities:

Cash from sale of common stock
Cash from sale of investments
Cash paid to retire bonds payable
Net income, per income statement

Correct 5

$ Correct 6

Add: Cash from sale of common stock
Add: Depreciation
Add: Cash paid for dividends
Add: Cash paid to retire bonds payable

Correct 7

$ Correct 8

Cash paid for purchase of equipment
Cash paid for dividends
Decrease in accounts receivable
Cash paid to retire bonds payable

Correct 9

Correct 10

Cash from sale of common stock
Cash from sale of investments
Cash paid for dividends
Increase in accounts payable

Correct 11

Correct 12

Correct 13

$ Correct 14

Deduct: Cash from sale of investments
Deduct: Cash paid for dividends
Deduct: Increase in inventories
Deduct: Cash paid for purchase of equipment

Correct 15

$ Correct 16

Cash from sale of common stock
Cash from sale of investments
Gain on sale of investments
Cash paid for purchase of equipment

Correct 17

Correct 18

Correct 19

Net cash flow from operating activities

Correct 21

Cash flows from investing activities:

Depreciation
Cash from sale of investments
Increase in inventories
Gain on sale of investments
Net income, per income statement

Correct 23

$ Correct 24

Cash from sale of common stock
Gain on sale of investments
Increase in accounts payable
Less: Cash paid for purchase of equipment

Correct 25

Correct 26

Net cash flow used for investing activities

Correct 28

Cash flows from financing activities:

Cash from sale of investments
Cash from sale of common stock
Increase in inventories
Gain on sale of investments

Correct 30

$ Correct 31

Depreciation
Decrease in accounts receivable
Less: Cash paid for purchase of equipment
Less: Cash paid to retire bonds payable

Correct 32

$ Correct 33

Add: Depreciation
Cash paid for dividends
Decrease in accounts receivable
Deduct: Increase in inventories
Gain on sale of investments
Net income, per income statement

Correct 34

Correct 35

Correct 36

Net cash flow used for financing activities

Correct 38

Decrease in cash
Increase in cash

Correct 39

$ Correct 40

Cash at the beginning of the year

Correct 42

Cash at the end of the year

$ Correct 44

stillwater designs is a private company and outsources productio 283831

Aug 29, 2021 | Uncategorized

Stillwater Designs is a private company and outsources production of its Kicker speaker lines. Suppose that Stillwater Designs provided you the following transactions.

a. Sold a warehouse for $750,000.

b. Reported a profit of $100,000.

c. Retired long term bonds.

d. Paid cash dividends of $350,000.

e. Obtained a mortgage for a new building from a local bank.

f. Purchased a new robotic system.

g. Issued a long term note payable.

h. Purchased a 40 percent interest in a company.

i. Reported a loss for the year.

j. Negotiated a working capital loan.

Required:

Classify each of these transactions as an operating activity, an investing activity, or a financing activity. Also, indicate whether the activity is a source of cash or a use of cash.

team members are to coordinate and independently answer one ques 283847

Aug 29, 2021 | Uncategorized

Team members are to coordinate and independently answer one question within each of the following three sections. Team members should then report to the team and confirm or correct teammates’ answers.

1. Answer one of the following questions about the statement of cash flows.

a. What are this statement’s reporting objectives?

b. What two methods are used to prepare it? Identify similarities and differences between them.

c. What steps are followed to prepare the statement?

d. What types of analyses are often made from this statement’s information?

2. Identify and explain the adjustment from net income to obtain cash flows from operating activities using the indirect method for one of the following items.

a. Noncash operating revenues and expenses.

b. Non operating gains and losses.

c. Increases and decreases in noncash current assets.

d. Increases and decreases in current liabilities.

3.BIdentify and explain the formula for computing cash flows from operating activities using the direct method for one of the following items.

a. Cash receipts from sales to customers.

b. Cash paid for merchandise inventory.

c. Cash paid for wages and operating expenses.

d. Cash paid for interest and taxes.

the balance sheet of terrier company at the end of 283879

Aug 29, 2021 | Uncategorized

The balance sheet of Terrier Company at the end of 2009 is presented here, along with certain other information for 2010:

December 31, 2009

Cash ………………………………………. $ 140,000

Accounts receivable ………………………. 155,000

Total current assets ……………………….. $ 295,000

Land ……………………………………….. $ 300,000

Plant and equipment ………………………. 500,000

Accumulated depreciation ………………… (150,000)

Investments ……………………………….. 100,000

Total long term assets ……………………..$ 750,000

Total assets ……………………………….. $1,045,000

Current liabilities ………………………… $ 205,000

Bonds payable ……………………………$ 300,000

Common stock ……………………………$ 400,000

Retained earnings ………………………… 140,000

Total stockholders’ equity ………………..$ 540,000

Total liabilities and

stockholders’ equity ……………………….$1,045,000

Other information is as follows:

a. Net income for 2010 was $70,000.

b. Included in operating expenses was $20,000 in depreciation.

c. Cash dividends of $25,000 were declared and paid.

d. An additional $150,000 of bonds was issued for cash.

e. Common stock of $50,000 was purchased for cash and retired.

f. Cash purchases of plant and equipment during the year were $200,000.

g. An additional $100,000 of bonds was issued in exchange for land.

h. During the year, sales exceeded cash collections on account by $10,000. All sales are on account.

i. The amount of current liabilities remained unchanged during the year.

Required

1. Prepare a statement of cash flows for 2010 using the indirect method in the Operating Activities section. Include a supplemental schedule for noncash activities.

2. Prepare a balance sheet at December 31, 2010.

3. Provide a possible explanation as to why Terrier decided to issue additional bonds for cash during 2010.

the comparative balances sheets for lopez tools inc for decem 283912

Aug 29, 2021 | Uncategorized

The comparative balances sheets for Lopez Tools, Inc., for December 31, 2010 and 2009, are at the top of the next page. During 2010, the company had net income of $48,000 and building and equipment depreciation expenses of $40,000 and $30,000, respectively. It amortized intangible assets in the amount of $ 10,000; purchased investments for $58,000; sold investments for $75,000, on which it recorded a gain of $17,000; issued at $120,000 of long term bonds at face value; purchased land and a warehouse through a $160,000 mortgage; paid $20,000 to reduce the mortgage; borrowed $30,000 by issuing notes payables; repaid notes payable in the amount of $90,000; declared and paid cash dividend is the amount of $18,000; and purchased treasury stock in the amount of $10,000.

?

.:.

Required

1. Using the indirect method, prepare a statement of cash flows for Lopez Tools, Inc.

2. Why did Lopez tools Experience a decrease in cash in a year in which it has a net income of $ 48,000? Discuss and interpret.

3. Compute and assess cash flow yield and free cash flow for 2010. Why is each of these measures important in assessing cash generating ability?

the financial statements of the coca cola company and pepsico i 283935

Aug 29, 2021 | Uncategorized

The financial statements of The Coca Cola Company and PepsiCo, Inc. can be accessed at the book’s website.

Instructions

Use information found at the book’s website to answer the following questions.

(a) What method of computing net cash provided by operating activities does Coca Cola use? What method does PepsiCo use? What were the amounts of cash provided by operating activities reported by Coca Cola and PepsiCo in 2006?

(b) What was the most significant item reported by Coca Cola and PepsiCo in 2006 in their investing activities sections? What is the most significant item reported by Coca Cola and PepsiCo in 2006 in their financing activities sections?

(c) What were these two companies’ trends in net cash provided by operating activities over the period 2004 to 2006?

(d) Where is ?odepreciation and amortization?? reported by Coca Cola and PepsiCo in their statements of cash flows? What is the amount and why does it appear in that section of the statement of cash flows?

(e) Based on the information contained in Coca Cola’s and PepsiCo’s financial statements, compute free cash flow. What conclusions concerning the management of cash can be drawn from the free cash flow analysis?

the following changes took place during the year in pavolik 283954

Aug 29, 2021 | Uncategorized

The following changes took place during the year in Pavolik Company’s balance sheet accounts:

Long term investments that had cost the company $6 were sold during the year for $ 16, and land that had cost $15 was sold for $9. In addition, the company declared and paid $30 in cash dividends during the year. No sales or retirements of plant and equipment took place during the year. The company’s income statement for the year follows:

The company’s beginning cash balance was $90, and its ending balance was $85.

Required:

Use the indirect method to determine the net cash provided by operating activities for the year.

Prepare a statement of cash flows for theyear.

the following events occurred at handsome hounds grooming compan 283958

Aug 29, 2021 | Uncategorized

The following events occurred at Handsome Hounds Grooming Company during its first year of business:

a. To establish the company, the two owners contributed a total of $50,000 in exchange for common stock.

b. Grooming service revenue for the first year amounted to $150,000, of which $40,000 was on account.

c. Customers owe $10,000 at the end of the year from the services provided on account.

d. At the beginning of the year, a storage building was rented. The company was required to sign a three year lease for $12,000 per year and make a $2,000 refundable security deposit. The first year’s lease payment and the security deposit were paid at the beginning of the year.

e. At the beginning of the year, the company purchased a patent at a cost of $100,000 for a revolutionary system to be used for dog grooming. The patent is expected to be useful for ten years. The company paid 20% down in cash and signed a four year note at the bank for the remainder.

f. Operating expenses, including amortization of the patent and rent on the storage building, totaled $80,000 for the first year. No expenses were accrued or unpaid at the end of the year.

g. The company declared and paid a $20,000 cash dividend at the end of the first year.

Required

1. Prepare an income statement for the first year.

2. Prepare a statement of cash flows for the first year using the direct method in the Operating Activities section.

3. Did the company generate more or less cash flow from operations than it earned in net income? Explain why there is a difference.

4. Prepare a balance sheet as of the end of the first year.

the following information is available for felix corporation for 283969

Aug 29, 2021 | Uncategorized

The following information is available for Felix Corporation for the year ended December 31, 2010.

Beginning cash balance …………………………………$ 45,000

Accounts payable decrease …………………………………3,700

Depreciation expense ……………………………………187,000

Accounts receivable increase ………………………………8,200

Inventory increase …………………………………………11,000

Net income ………………………………………………284,100

Cash received for sale of land at book value ……………..35,000

Sales ……………………………………………………..747,000

Cash dividends paid ………………………………………12,000

Income tax payable increase ……………………………….4,700

Cash used to purchase building …………………………129,000

Cash used to purchase treasury stock …………………….32,000

Cash received from issuing bonds ………………………200,000

Instructions

Prepare a statement of cash flows using the indirect method.

acme manufacturing manufactures and sells three products the following information p 283982

Aug 29, 2021 | Uncategorized

Acme Manufacturing manufactures and sells three products. The following information pertains to Acme’s 2012 sales and operations.

Budgeted sales in units Budgeted selling price per unit	Light 8,000 $140.00	Best 3,900 $200.00	Supreme 3,900 $400.00
Budgeted variable cost per unit	$95.00	$165.00	$385.00
Budgeted Fixed Costs	$350,000
Actual sales in units	6,935	4,194	5,000
Actual selling price per unit	$150.00	$175.00	$385.00
Actual variable cost per unit	$100.00	$127.50	$365.00
Actual Fixed Costs	$400,000

You may find the contribution margin format at Exhibit 14 4 (page 597) helpful to complete this assignment.
Your assignment must be neat! Use of Excel is encouraged!

1. Calculate the sales volume variance for each product and in total.

2. Calculate the sales mix variance for each product and in total.

3. Calculate the sales quantity variance for each product and in total.

4. Assume Acme estimated that its budgeted sales would be 12.0% of the total market share for this line of products in the Twin Cities metropolitan area for 2012. Reliable industry data indicates that the actual market size was 180,000 for these kinds of products sold for the geographic area in 2012.

a. Compute the market share variance for 2012.

b. Compute the market size variance for 2012.

5. As the management accountant preparing and presenting this information to upper management, what is the
primary operating result/issue you express to upper management about this analysis?

Attachments:

Chp 16 SVV GW….doc

3 t corporation sells 1 000 000 of 11 bos when the market rate is 10 283992

Aug 29, 2021 | Uncategorized

JOURNALIZE THE FOLLOWING INDEPENDENT EVENTS. BOND DISCOUNT OR PREMIUM IS AMORTIZED USING THE EFFECTIVE INTEREST METHOD . T Corporation sells 3,000,000 of 10% bonds when the market rate is 12%. The bonds mature in 10 years Interest on the bonds is paid semiannually. a. Record the sales of the bonds b. Record the 1st payment of interest c. Record the 2nd interest payment

T Corporation sells 2,000,000 of 10% bonds when th Interest on the bonds is the market rate is 10%. The bonds mature in 5 years paid semiannually.

a Record the sales of the bonds b. Record the 1st payment of interest c. Record the 2nd interest payment

3.. T Corporation sells 1,000,000 of 11% bonds when the market rate is 10%. The bonds mature in 8 Interest on the bonds is paid semiannually.

a. Record the sales of the bonds b. Record the 1st payment of interest c. Record the 2nd interest payment

4. T Corporation sells 6,000,000 of 14% bonds when the market rate is 12%. The bonds mature in 10 years Interest on the bonds is paid semiannually.

a. Record the sales of the bonds b. Record the 1st payment of interest c. Record the 2nd interest payment d. The bonds are retired at the end of the year (after Transaction c) at

5. T Corporation sells 4,000,000 of 8% bonds when the market rate is 12%. The bonds Interest on the bonds is paid semiannually.

a. Record the sales of the bonds b. Record the 1st payment of interest c. Record the 2nd interest payment d. The bonds are retired at the end of the year (after Transa

Attachments:

photo 4 .JPG

the following information was taken from the records of glassett 283997

Aug 29, 2021 | Uncategorized

The following information was taken from the records of Glassett Produce Company for the year ended June 30, 2011.

Borrowed on long term notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15,000

Issued capital stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,000

Purchased equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,000

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,000

Purchased treasury stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000

Paid dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,000

Depreciation expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,000

Retired bonds payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,000

Patent amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000

Sold long term investment (at cost) . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,200

Increase in cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,300

Decrease in inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,300

Increase in accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,200

Increase in accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000

Cash balance, July 1, 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,000

Instructions:

1. From the information given, prepare a statement of cash flows using the indirect method.

2. Briefly explain what an interested party would learn from studying the cash flow statement for Glassett Produce Company.

a customer has asked clougherty corporation to supply 4 000 units of product m97 wit 448114

Aug 29, 2021 | Uncategorized

(TCO D) A customer has asked Clougherty Corporation to supply 4,000 units of product M97, with some modifications, for $40.10 each. The normal selling price of this product is $48.00 each. The normal unit product cost of product M97 is computed as follows.

Direct Materials 18.50

Direct Labor 1.20

Variable manufacturing overhead 8.40

Fixed manufacturing overhead 3.90

Unit product cost 32.00

Direct labor is a variable cost. The special order would have no effect on the company’s total fixed manufacturing overhead costs. The customer would like some modifications made to product M97 that would increase the variable costs by $5.70 per unit and that would require a one time investment of $31,000 in special molds that would have no salvage value. This special order would have no effect on the company’s other sales. The company has ample spare capacity for producing the special order.

Required:

Determine the effect on the company’s total net operating income of accepting the special order. Show your work!

mel o conner owns rental properties in michigan 282992

Aug 29, 2021 | Uncategorized

Mel O’Conner owns rental properties in Michigan. Each property has a manager who collects rent, arranges for repairs, and runs advertisements in local newspapers. The property managers transfer cash to O’Conner monthly and prepare their own bank reconciliations. The manager in Lansing has been stealing from the company. To cover the theft, he understates the amount of the outstanding checks on the monthly bank reconciliation. As a result, each monthly bank reconciliation appears to balance. However, the balance sheet reports more cash than O’Conner actually has in the bank. In negotiating the sale of the Lansing property, O’Conner is showing the balance sheet to prospective investors.

Identify two parties other than O’Conner who can be harmed by this theft. In what ways can they be harmed? Discuss the role accounting plays in this situation. What internal controls could be put in place to prevent this type of theft?

Western Bank & Trust purchased land and a building for the lump sum of $3 million dollars. To get the maximum tax deduction, Western allocated 90% of the purchase price to the building and only 10% to the land. A more realistic allocation would have been 70% to the building and 30% to the land.

Explain the tax advantage of allocating too much to the building and too little to the land.Was Western’s allocation ethical? If so, state why. If not, state why not. Identify who was harmed.

Document Preview:

Mel O’Conner owns rental properties in Michigan. Each property has a manager who collects rent, arranges for repairs, and runs advertisements in local newspapers. The property managers transfer cash to O’Conner monthly and prepare their own bank reconciliations. The manager in Lansing has been stealing from the company. To cover the theft, he understates the amount of the outstanding checks on the monthly bank reconciliation. As a result, each monthly bank reconciliation appears to balance. However, the balance sheet reports more cash than O’Conner actually has in the bank. In negotiating the sale of the Lansing property, O’Conner is showing the balance sheet to prospective investors.??Identify two parties other than O’Conner who can be harmed by this theft. In what ways can they be harmed? Discuss the role accounting plays in this situation. What internal controls could be put in place to prevent this type of theft? Western Bank & Trust purchased land and a building for the lump sum of $3 million dollars. To get the maximum tax deduction, Western allocated 90% of the purchase price to the building and only 10% to the land. A more realistic allocation would have been 70% to the building and 30% to the land. ?Explain the tax advantage of allocating too much to the building and too little to the land.Was Western’s allocation ethical? If so, state why. If not, state why not. Identify who was harmed.

Attachments:

DQ VI.docx

based on an analysis of the cash and other accounts 282993

Aug 29, 2021 | Uncategorized

Based on an analysis of the cash and other accounts, the following information was provided by the controller of Black Iron, Inc., a manufacturer of wood burning stoves, for the year 2011.

(a) Cash sales for the year were $210,000; sales on account totaled $240,000.

(b) Cost of goods sold was 50% of total sales.

(c) All inventory is purchased on account.

(d) Depreciation on equipment was $86,000 for the year.

(e) Amortization of patent was $9,000.

(f) Collection of accounts receivable was $98,000.

(g) Payments on accounts payable for inventory equaled $123,000.

(h) Rent expense paid in cash was $42,000.

(i) Cash of $580,000 was obtained by issuing 40,000 shares of $10 par stock.

(j) Land worth $425,000 was acquired in exchange for a $400,000 bond.

(k) Equipment was purchased for cash at a cost of $287,000.

(l) Dividends of $115,000 were declared.

(m) Dividends of $52,000 that had been declared the previous year were paid.

(n) A machine used on the assembly line was sold for $26,000. The machine had a book value of $19,000.

(o) Another machine with a book value of $2,300 was scrapped and was reported as an ordinary loss. No cash was received on this transaction.

(p) The cash account had a balance of $79,000 on January 1, 2011.

Instructions:

Use the direct method to prepare a statement of cash flows for Black Iron, Inc., for the year ended December 31, 2011.

below are a number of transactions that took place in 283010

Aug 29, 2021 | Uncategorized

Below are a number of transactions that took place in Seneca Company during the past year:

Common stock was sold for cash.

Interest was paid on a note, decreasing Interest Payable.

Bonds were retired.

A long term loan was made to a subsidiary.

Interest was received on the loan in (d) above, reducing Interest Receivable.

A stock dividend was declared and issued on common stock.

A building was acquired by issuing shares of common stock.

Equipment was sold for cash.

Short term investments were sold.

Cash dividends were declared and paid.

Preferred stock was converted into common stock.

Deferred Income Taxes, a long term liability, was reduced.

Dividends were received on stock of another company held as an investment.

Equipment was purchased by giving a long term note to the seller.

Required:

Prepare an answer sheet with the following column headings:

Enter the letter of the transaction in the left column and indicate whether the transaction would be a source, use, or neither. Then place an X in the appropriate column to show the proper classification of the transaction on the statement of cash flows, or to show if it would be reported in a separate schedule or not reported on the statement atall.

below are listed the changes in yoric company s balance sheet 283012

Aug 29, 2021 | Uncategorized

Below are listed the changes in Yoric Company’s balance sheet accounts for the past year:

The following additional information is available about last year’s activities:

Net income for the year was $_______?_______.

The company sold equipment during the year for $15,000. The equipment originally cost $50,000 and it had $37.000 in accumulated depreciation at the time of sale.

Cash dividends of $20,000 were declared and paid during the year.

Depreciation charges for the year were $_________?__________.

The balances in the Plant and Equipment and Accumulated Depreciation accounts are given below:

The balance in the Cash account at the beginning of the year was $23,000; the balance at the end of the year was$ _______?______.

If data are not given explaining the change in an account, make the most reasonable assumption as to the cause of the change.

Required:

Using the indirect method, prepare a statement of cash flows for theyear.

below are transactions that took place in placid company during 283013

Aug 29, 2021 | Uncategorized

Below are transactions that took place in Placid Company during the past year:

Equipment was purchased.

A cash dividend was declared and paid.

Accounts receivable decreased.

Short term investments were purchased.

Equipment was sold.

Preferred stock was sold to investors.

A stock dividend was declared and issued.

Interest was paid to long term creditors.

Salaries and wages payable decreased.

Stock of another company was purchased.

Bonds were issued that will be due in 10 years.

Rent was received from subleasing office space, reducing rents receivable.

Common stock was repurchased and retired.

Required:

Prepare an answer sheet with the following headings:

Enter the transactions above on your answer sheet and indicate how the effects of each transaction would be classified on a statement of cash flows. Place an X in the Operating, Investing, or Financing column and an X in the Source or Use column asappropriate.

carnival corporation plc is one of the largest cruise 283033

Aug 29, 2021 | Uncategorized

Carnival Corporation & plc is one of the largest cruise companies in the world with such well known brands as Carnival Cruise Lines, Holland America Line, and Princess Cruises. Classify each of the following items found on the company’s 2008 statement of cash flows according to whether it would appear in the Operating Activities section (O), in the Investing Activities section (I), or in the Financing Activities section (F). The company uses the indirect method in the Operating Activities section of its statement.

______ 1. Dividends paid

______ 2. Proceeds from issuance of other long term debt

______ 3. Depreciation and amortization

______ 4. Additions to property and equipment

______ 5. Purchases of treasury stock, net

______ 6. Net income

changes in various accounts and gains and losses on the 283041

Aug 29, 2021 | Uncategorized

Changes in various accounts and gains and losses on the sale of assets during the year for Weston Company are given below:

Item Amount

Accounts Receivable . . . . . . . . . . . . . . . . $70,000 decrease

Accrued Interest Receivable . . . . . . . . . . $6,000 increase

Inventory . . . . . . . . . . . . . . . . . . . . . . . . $110,000 increase

Prepaid Expenses . . . . . . . . . . . . . . . . . . $3,000 decrease

Accounts Payable . . . . . . . . . . . . . . . . . . $40,000 decrease

Accrued Liabilities . . . . . . . . . . . . . . . . . . $9,000 increase

Deferred Income Taxes Liability . . . . . . $15,000 increase

Sale of equipment . . . . . . . . . . . . . . . . . . $8,000 gain

Sale of long term investments . . . . . . . . .$12,000 loss

Required:

For each item, place an X in the Add or Deduct column to indicate whether the dollar amount should be added to or deducted from net income under the indirect method when computing the net cash provided by operating activities for the year. Use the following column headings in preparing your answers:

Item Amount Add Deduct

fannin company is a manufacturer of premium athletic equipment 283279

Aug 29, 2021 | Uncategorized

Fannin Company is a manufacturer of premium athletic equipment. Fannin reported the following inflows and outflows of cash during 2009.

Net income ………………………………………$589,000

Increase in accounts receivable …………………. 32,000

Decrease in inventory ……………………………. 59,400

Decrease in prepaid insurance …………………… 45,800

Decrease in accounts payable ……………………. 59,600

Decrease in income taxes payable ……………….. 11,200

Increase in wages payable ……………………….. 21,600

Cash received from sale of investment …………… 9,000

Cash paid for property, plant, and equipment ……. 102,000

Depreciation expense ……………………………… 103,300

Proceeds from issuance of note payable ………….. 55,000

Payment on bonds payable ……………………….. 50,000

Cash received from issuance of common stock …… 25,000

Payment of cash dividends ……………………….. 55,000

Fannin had cash on hand at 1/1/09 of ……………..$218,500.

Required:

Prepare a properly formatted statement of cash flows using the indirect method.

for each of the following transactions reported on a statement 283291

Aug 29, 2021 | Uncategorized

For each of the following transactions reported on a statement of cash flows, indicate whether it would appear in the Operating Activities section (O), in the Investing Activities section (I), or in the Financing Activities section (F). Put an S in the blank if the transaction does not affect cash but is reported in a supplemental schedule of noncash activities. Assume that the company uses the direct method in the Operating Activities section.

______ 1. A company purchases its own common stock in the open market and immediately retires it.

______ 2. A company issues preferred stock in exchange for land.

______ 3. A six month bank loan is obtained.

______ 4. Twenty year bonds are issued.

______ 5. A customer’s open account is collected.

______ 6. Income taxes are paid.

______ 7. Cash sales for the day are recorded.

______ 8. Cash dividends are declared and paid.

______ 9. A creditor is given shares of common stock in the company in return for cancellation of a long term loan.

______ 10. A new piece of machinery is acquired for cash.

______ 11. Stock of another company is acquired as an investment.

______ 12. Interest is paid on a bank loan.

______ 13. Factory workers are paid.

hewlett packard is a leading manufacturer of computer equipment 283342

Aug 29, 2021 | Uncategorized

Hewlett Packard is a leading manufacturer of computer equipment for the business and home markets. For each of the following recent transactions, indicate whether net cash inflows (outflows) from operating activities (NCFO), investing activities (NCFI), or financing activities (NCFF) are affected and whether the effect is an inflow ( + ) or outflow ( ?^? ), or (NE) if the transaction has no effect on cash.

______ 1. Purchased raw materials inventory on account.

______ 2. Prepaid rent for the following period.

______ 3. Purchased new equipment by signing a three year note.

______ 4. Recorded an adjusting entry for expiration of a prepaid expense.

______ 5. Recorded and paid income taxes to the federal government.

______ 6. Purchased investment securities for cash.

______ 7. Issued common stock for cash.

______ 8. Collected payments on account from customers.

______ 9. Sold equipment for cash equal to its net book value.

______ 10. Issued long term debt for cash.

abc company has two service departments and two user departments the number of emplo 283368

Aug 29, 2021 | Uncategorized

Question Number

1 Which of the following is a nonvalue added activity? A. Product design B. Customer service C. Research and development D. Rework of defective items E. None of the above F. All of the above

D I

2 ABC Company has two service departments and two user departments. The number of employees in each department is: Personal: 10 Cafeteria: 25 Production Department A: 265 Production Department B: 250 The fixed costs of the Personnel Department are allocated on a basis of the number of employees. If these costs are budgeted at $37,125 during a given period, the amount of cost allocated to the Cafeteria under the step method would be: A. $0. B. $1,718.75. C. $1,687.50. D. $1,802.18. E. None of the above. F. The answer cannot be determined with the information given.

F

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1 1 0 2 0 3 0 4 1 5 0 6 0 7 0 8 0 9 1 10 0 11 0 12 0 13 1 14 1 15 1 16 1 17 1 18 0 19 0 20 0 21 0 22 0 23 0 24 0 25 0 26 1 27 0 28 0 29 0 30 1 31 1 32 1 33 1 34 1 35 1 36 0 37 1 38 1 39 1 40 0 41 0 42 0 43 0 44 1 45 1 46 1 47 0 48 1 49 1 50 0 51 0 52 1 53 1 54 0 55 0 56 1 57 0 58 0 59 0 60 1 61 1 62 1 63 1 64 0 65 1 66 1 67 1 68 1 69 0 70 0 71 0 72 0 73 0 74 1 75 0 76 0 77 0 78 0 79 0 80 0 81 0 82 0 83 0 84 0 85 0 86 0 87 0 88 1 89 0 90 1 91 0 92 1 93 1 94 1 95 0 96 1 97 0 98 1 99 1 100 Question Number Which of the following is a nonvalue added activity? A. Product design B. Customer service C. Research and development D. Rework of defective items Answer E. None of the above D A B C E F Indicate Answer Here Which of the following statements is false? B. Accounting systems are important because they provide all the information for decisions commonly made by managers. A. In essence, the value chain and the supply chain are similar; each creates something for which the customer is willing to pay. C. The supply or distribution chain is a linked set of organizations that exchange goods and services in combination to provide a final product or service to the customer. D. Eliminating nonvalue added activities always reduces costs without affecting the value of the product to customers. Points F. All of the statements are false. E. None of the statements are false. An accounting system that collects financial and operating data on the basis of the underlying nature and extent of cost drivers is C. $60,000. A. $260,000. B. $100,000. D. $40,000. F. The answer cannot be determined with the information given. E. None of the above. Which field of accounting emphasizes relevancy over comparability? A. Cost accounting. B. Financial accounting. C. Responsibility…

Aug 29, 2021 | Uncategorized

Lorien Company wishes to prepare a forecasted income statement, a forecasted balance sheet, and a forecasted statement of cash flows for 2012. Lorien’s balance sheet and income statement for 2011 follow:

Balance Sheet 2011

Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 40

Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 350

Property, plant, and equipment, net . . . . . . . . . . . . . . . . . . . . . . . 1,000

Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,390

Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 100

Bank loans payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000

Paid in capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100

Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190

Total liabilities and stockholders’ equity . . . . . . . . . . . . . . . . . . $1,390

Income Statement 2011

Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,000

Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 350

Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 650

Depreciation expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200

Other operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250

Operating profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 200

Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120

Income before taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 80

Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 60

In addition, Lorien has assembled the following forecasted information for 2012.

(a) Sales are expected to increase to $1,200.

(b) Lorien does not expect to buy any new property, plant, and equipment during

2012.

(c) Because of adverse banking conditions, Lorien does not expect to receive any new bank loans in 2012.

(d) Lorien plans to pay cash dividends of $15 in 2012.

Instructions:

1. Prepare a forecasted balance sheet, a forecasted income statement, and a forecasted statement of cash flows for 2012. Clearly state what assumptions you make. Use the indirect method for reporting cash from operating activities.

2. If you have constructed your forecasted cash flow statement correctly, you will see that Lorien plans to distribute cash to shareholders through two different means in 2012. Which of these methods involves distributing an equal amount of cash for each share owned? Which of these methods channels the cash to shareholders who are the least optimistic about the prospects of the company?

lovell company reported the following information related to its 283519

Aug 29, 2021 | Uncategorized

Lovell Company reported the following information related to its long term assets:

Property, plant, and equipment, beginning balance . . . . . . . . . . . . . . . . . . . . . . . . . . $230,000

Property, plant, and equipment, ending balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 260,000

Accumulated depreciation, beginning balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81,000

Accumulated depreciation, ending balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79,000

Depreciation expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,500

In addition, the company disclosed that it sold equipment with a historical cost of $25,000 for $21,000. Using this information, compute cash paid for property, plant, and equipment.

lundy manufacturing produces and sells football equipment the c 283524

Aug 29, 2021 | Uncategorized

Lundy Manufacturing produces and sells football equipment. The company was involved in the following transactions or events during 2012:

1. The company purchased $250,000 worth of materials to be used during 2013 to manufacture helmets and shoulder pads.

2. The company sold football equipment for $500,000. The inventory associated with the sale cost the company $375,000.

3. One of the company’s plants in San Francisco was damaged by a minor earthquake. The total amount of the damage was $100,000.

4. The company issued ten ($l,000 face value) bonds at a discount (.98).

5. The company incurred $143,000 in wage expenses.

6. The company was sued by a high school football player who was injured while using some of the company’s equipment. The football player will probably win the suit, and the amount of the settlement has been estimated at $10,000. This is the sixth lawsuit filed against the company in the past three years.

7. The company switched from the double declining balance depreciation method to the straight line depreciation method.

8. The company declared and paid $50,000 in dividends.

9. The company incurred a loss when it sold some securities that it was holding as an investment.

Required

(a) Classify each of these transactions as financing, investing, or operating.

(b) Refer to Figures (a) and (b) in the text, and identify the category in which each of the items listed should be placed.

(c) Which of these items should be included on the company’s income statement? Briefly describe how they should be disclosed

lyle mcgee had been the chief accountant at l 283525

Aug 29, 2021 | Uncategorized

Lyle McGee had been the chief accountant at L & B Corporation for well over 20 years. He routinely omitted noncash investing and financing activities from the statement of cash flows, even when they were significant events. When a junior accountant who had just been hired questioned this practice, Lyle told her that it doesn’t make any difference how significant an item is ?oif it doesn’t involve cash. Besides, we’re a small company and our stockholders are only interested in the bottom line.??

1. Is it possible that Lyle thinks he is treating the significant noncash investing and financing activities properly?

2. If you were the junior accountant, what would you do?

3. Suppose that Lyle wants the junior accountant to give him a refresher course on the statement of cash flows. Write a brief memo to Lyle explaining the purpose of the statement of cash flows. Include a description of both the direct and indirect methods. Also, explain the importance of including significant noncash investing and financing activities.

4. In groups of two or three, discuss which method of preparing the statement of cash flows is easier for you to understand, the direct or the indirect, and why.

which alternative should the company choose 447936

Aug 29, 2021 | Uncategorized

(TCO D) Part F77 is used in one of Wilcutt Corporation’s products. The company’s Accounting Department reports the following costs of producing the 7,000 units of the part that are needed every year.

	Per Unit
Direct Materials	$7.00
Direct Labor	$6.00
Variable Overhead	$5.60
Supervisor’s Salary	$4.70
Depreciation of Special Equipment	$1.50
Allocated General Overhead	$5.40

An outside supplier has offered to make the part and sell it to the company for $28.30 each. If this offer is accepted, the supervisor’s salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside supplier’s offer were accepted, only $9,000 of these allocated general overhead costs would be avoided.

Required:

i. Prepare a report that shows the effect on the company’s total net operating income of buying part F77 from the supplier rather than continuing to make it inside the company.

ii. Which alternative should the company choose?

what impact would the contribution have on the wealthy rsquo s 2011 tax bill 447939

Aug 29, 2021 | Uncategorized

1.A firm that owns the stock of another corporation does not have to pay taxes on the entire amount of dividends received. In general, only 30 percent of the dividends received by one corporation from another are taxable. The reason for this tax law feature is to mitigate the effect of triple taxation, which occurs when earnings are first taxed at one first firm, then its dividends paid to a second firm are taxed again, and finally the dividends paid to stockholders by the second firm are taxed yet again. Assume that a firm with 40 percent tax rate receives $75,000 in dividends from another corporation. What taxes must be paid on this dividend and what is after tax amount of the dividend?

2.John Doe is in the 40 percent personal tax bracket. He is considering investing in HCA bonds that carry a 14 percent interest rate.

a.What is his after tax yield (interest rate) on the bonds?

suppose Twin Cities Memorial Hospital has issued tax exempt bonds that have an interest of 6 percent. With all else the same, should John buy the HCA or the Twin Cities bonds?

3. Jane Smith currently holds tax exempt bonds of Good Samaritan Healthcare that pays 6 percent interest. She is in the 35 percent tax bracket. Her broker wants her to buy some Beverly Enterprises taxable bonds that will be issued next week. With all else the same, what rate must be set on the Beverly bonds to make Jane interested in making a switch?

4. George and Margaret Wealthy are in the 40 percent tax bracket, considering both federal and state personal taxes. Norman Briggs, then CEO of Community General Hospital, has been aggressively pursuing the couple to contribute $500 thousand to the hospital’s soon to be built Cancer Care Center. Without the contribution, the Wealthy’s taxable income for 2011 would be $2 million (assume this is tax system with a flat rate). What impact would the contribution have on the Wealthy’s 2011 tax bill?

a company makes a single product that it sells for 16 per unit 447944

Aug 29, 2021 | Uncategorized

A company makes a single product that it sells for $16 per unit. Fixed costs are $76,800 per month and the product has a contribution margin ratio of 40%. If the company’s actual sales are $224,000, its MARGIN OF SAFETY is:
A)$32,000
B)$96,000
C)$128,000
D)$192,000

Borich Corp. produces and sells a single product. Data concerning that product appear below:

Selling price per unit	$150.00
Variable expenses per unit	$73.50
Fixed expenses per month	$308,295

The break even in monthly UNIT sales is closest to:
A) 2,055
B) 4,030
C) 4,194
D) 3,426

calculate waccs based on target book 447958

Aug 29, 2021 | Uncategorized

Bruner Breakfast Foods’ (BBF) balance sheet shows a total of $20 million long term debt with a coupon rate of 8.00% (assume each bond to have a maturity value, M, of $1,000). The yield to maturity on this debt is 10.00%, and the debt has a total current market value of $18 million. The balance sheet also shows that that the company has 10 million shares of stock, and total of common equity (common stock plus retained earnings) is $30 million. The current stock price is $4.50 per share, and stockholders’ required rate of return, rs, is 12.25%. The company recently decided that its target capital structure should have 50% debt, with the balance being common equity. The tax rate is 40%. Calculate WACCs based on target, book, and market value capital structures (Note: I am asking for three (3) separate WACC values here).

convertible bonds are debt securities that can be converted into a firm s stock at a 448041

Aug 29, 2021 | Uncategorized

1) The time value of money is the opportunity cost of passing up the earning potential of a dollar today.

2) A rational investor would prefer to receive $1,200 today rather than $100 per month for 12 months.

3) A timeline identifies the timing and amount of a stream of cash flows, along with the interest rate it earns.

4) Timelines are used for simple time value of money problems, but cannot be used for more complex problems.

5) If you only earned interest on your initial investment, and not on previously earned interest, it would be called simple interest.

6) An investment earning simple interest is preferred over an investment earning compound interest because the simplicity adds value.

7) When using a financial calculator, cash outflows generally have to be entered as negative numbers, because a financial calculator sees money “leaving your hands.”

8) $10,000 invested at 10% per year for 5 years earns interest equal to $6,105.10; therefore, $10,000 invested at 10% per year for 10 years will earn interest equal to $12,210.20 (2 times $6,105.10).

9) When solving time value of money problems on a financial calculator, you must select the “end mode” when you enter the final years cash flow.

10) When solving a problem involving an annuity due, you must select the “beg” or beginning mode on your financial calculator.

The Meaning and Measurement of Risk and Return

11) Accounting profits is the most relevant variable the financial manager uses to measure returns.

12) Cash flows is the most relevant variable to measure the returns on debt instruments, while GAAP net income is the most relevant variable to measure the returns on common stock.

13) The expected rate of return from an investment is equal to the expected cash flows divided by the initial investment.

14) Actual returns are always less than expected returns because actual returns are determined at the end of the period and must be discounted back to present value.

15) Another name for an asset’s expected rate of return is holding period return.

Keywords: Holding Period Return, Expected Return

16) The realized rate of return, or holding period return, is equal to the holding period dollar gain divided by the price at the beginning of the period.

17) The risk return tradeoff that investors face on a day to day basis is based on realized rates of return because expected returns involve too much uncertainty.

18) Variation in the rate of return of an investment is a measure of the riskiness of that investment.

19) A rational investor will always prefer an investment with a lower standard deviation of returns, because such investments are less risky.

20) For a well diversified investor, an investment with an expected return of 10% with a standard deviation of 3% dominates an investment with an expected return of 10% with a standard deviation of 5%.

21) Due to strict stock market controls, the most a stock’s value can drop in one trading day is 5%.

Chapter 7 The Valuation and Characteristics of Bonds

22) Subordinated debentures are more risky than unsubordinated debentures because the claims of subordinated debenture holders are less likely to be honored in the event of liquidation.

23) An example of a Eurobond is a bond issued in Asia by a U.S. Corporation with interest and principal payments made in U.S. dollars.

24) Convertible bonds decrease in value whenever the price of the company’s stock increases.

25) Junk bonds are also called high yield bonds.

26) The expected yield on junk bonds is higher than the yield on AAA rated bonds because of the higher default risk associated with junk bonds.

27) Bonds issued in a country different from the one in which the currency of the bond is denominated are called Eurobonds.

28) Convertible bonds are debt securities that can be converted into a firm’s stock at a prespecified price.

29) A mortgage bond is secured by a lien on real property.

golden company rsquo s total overhead cost at various levels of activity are present 448063

Aug 29, 2021 | Uncategorized

Golden Company’s total overhead cost at various levels of activity are presented below:

Assume that the overhead cost above consists of utilities, supervisory salaries, and maintenance. The breakdown of these costs at the 40,000 machine hour level of activity is as follows:

Utilities (variable) . . . . . . . . . . . . . . . . $ 52,000

Supervisory salaries (fixed) . . . . . . . . 60,000

Maintenance (mixed) . . . . . . . . . . . . . 58,200

Total overhead cost. . . . . . . . . . . . . . . $170,200

The company wants to break down the maintenance cost into its variable and fixed cost elements.

Required:

1. Estimate how much of the $241,600 of overhead cost in June was maintenance cost.

2. Using the high low method, estimate a cost formula for maintenance.

3. Express the company’s total overhead cost in the form Y = a + bX.

4. What total overhead cost would you expect to be incurred at an activity level of 45,000machine hours?

preparing adjusting and subsequent journal entries l o c1 a1 p1 448064

Aug 29, 2021 | Uncategorized

Problem 3 2A Preparing adjusting and subsequent journal entries L.O. C1, A1, P1

Hormel Co. follows the practice of recording prepaid expenses and unearned revenues in balance sheet accounts. The company’s annual accounting period ends on December 31, 2009. The following information concerns the adjusting entries to be recorded as of that date.

a. The Office Supplies account started the year with a $3,800 balance. During 2009, the company purchased supplies for $15,694, which was added to the Office Supplies account. The inventory of supplies available at December 31, 2009, totaled $3,344.

b. An analysis of the company’s insurance policies provided the following facts.

Policy Date of Purchase Months of coverage Cost
A April 1, 2008 24 $ 10,464
B April 1, 2009 36 9216
C August 1, 2009 12 8064

The total premium for each policy was paid in full (for all months) at the purchase date, and the Prepaid Insurance account was debited for the full cost. (Year end adjusting entries for Prepaid Insurance were properly recorded in all prior years.)

c. The company has 15 employees, who earn a total of $2,900 in salaries each working day. They are paid each Monday for their work in the five day workweek ending on the previous Friday. Assume that December 31, 2009, is a Tuesday, and all 15 employees worked the first two days of that week. Because New Year’s Day is a paid holiday, they will be paid salaries for five full days on Monday, January 6, 2010.

d. The company purchased a building on January 1, 2009. It cost $635,000 and is expected to have a $45,000 salvage value at the end of its predicted 20 year life. Annual depreciation is $29,500.

e. Since the company is not large enough to occupy the entire building it owns, it rented space to a tenant at $2,600 per month, starting on November 1, 2009. The rent was paid on time on November 1, and the amount received was credited to the Rent Earned account. However, the tenant has not paid the December rent. The company has worked out an agreement with the tenant, who has promised to pay both December and January rent in full on January 15. The tenant has agreed not to fall behind again.
f. On November 1, the company rented space to another tenant for $2,356 per month. The tenant paid five months’ rent in advance on that date. The payment was recorded with a credit to the Unearned Rent account.

progressive home health care inc is a for profit provider of home health care servic 448067

Aug 29, 2021 | Uncategorized

Progressive Home Health Care Inc. is a for profit provider of home health care services in the Pacific Northwest. At present, it has EBIT of $2 million per year, no debt, and a market value of approximately $12 million. Although management is pleased with the good financial condition of Progressive, they are also concerned that the firm might be the target of a potential hostile takeover by a large competitor. Therefore, Progressive is considering issuing debt to buy back shares, the interest on which would be tax deductible (its tax rate is 40 percent). Management recognizes that as the amount of debt increases, both the value of the firm and the risk of financial distress increase. The CFO estimates that the present value of any future financial distress costs is $8 million, and that the probability of distress increases with the amount of debt in the following steps: Probability of financial Value of debt distress 0 0% $2,500,000 1% $5,000,000 2% $7,500,000 4% $10,000,000 8% $12,500,000 16% $15,000,000 32% $20,000,000 64% a. What is Progressive’s cost of equity and corporate cost of capital now? b. According to MM with corporate taxes, what is the optimal level of debt? c. According to MM with corporate taxes and financial distress, what is the optimal level of debt? d. Plot the value of Progressive, with and without the costs of financial distress, as a function of the amount of debt. Why do the lines differ in shape?

rockness recycling refurbishes rundown business students 448081

Aug 29, 2021 | Uncategorized

Rockness Recycling refurbishes rundown business students. The process uses a moving belt, which carries each student through the five steps of the process in sequence. The five steps are as follows:

Step 1 unpack and place on belt 1.0 minute

Step 2 strip off bad habits 1.5 minutes

Step 3 Scrub and clean mind 0.8 minute

Step 4 Insert modern methods 1.0 minute

Step 5 Polish and pack 1.2 minutes

One faculty member is assigned to each of these steps. Faculty members work a 40 hour week and rotate jobs each week. Mr. Rockness has been working on a contract from General Eclectic, which requires delivery of 2,000 refurbished students per week. A representative of the human resources department has just called complaining that the company hasn´t been receiving the agreed upon number of students. A check of finished goods inventory by Mr. Rockness reveals that there is no stock left. What is going on?

shun corporation manufactures and sells a hand held calculator 448104

Aug 29, 2021 | Uncategorized

Shun Corporation manufactures and sells a hand held calculator. The following information relates to Shun’s operations for last year:

Unit product cost under variable costing…..$5.20 per unit

Fixed manufacturing overhead cost for the year…..$260,000

Fixed selling and administrative cost for the year…..$180,000

Units (calculators) produced and sold…..400,000

What is Shun’s unit product cost under absorption costing for last year?

Answer

A $4.10

B $4.55

C $5.85

D $6.30

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:

Units in beginning Inventory 0

Units produced 1,900

Units sold 1,700

Units in ending inventory 200

Variable costs per unit:

Direct materials $33

Direct labor $32

Variable manufacturing overhead $2

Variable selling and administrative $6

Fixed costs:

Fixed manufacturing overhead $72,200

Fixed selling and administrative $6,800

simon company s high and low level of activity last year was 60 000 units of product 448108

Aug 29, 2021 | Uncategorized

Simon Company’s high and low level of activity last year was 60,000 units of product produced in May and 20,000 units produced in November. Machine maintenance costs were $78,000 in May and $30,000 in November. Using the high low method, determine an estimate of total maintenance cost for a month in which production is expected to be 45,000 units.

Question 10 options:

A)$67,500

B)$72,000

C)$58,500

D)$60,000

Keith Company produces flash drives for computers, which it sells for $20 each. Each flash drive costs $12 of variable costs to make. During April, 1,000 drives were sold. Fixed costs for March were $2 per unit for a total of $1,000 for the month. How much is the contribution margin ratio?

Question 11 options:

A)70%

B)60%

C)40%

D)30%

simpson auto body repair purchased 20 000 of machinery 448109

Aug 29, 2021 | Uncategorized

Simpson Auto Body Repair purchased $20,000 of Machinery. The company paid $8,000 in cash at the time of the purchase and signed a promissory note for the remainder to be paid in four monthly installments. How will this transaction affect the accounting equation?

A. Increase Assets (Machinery $20,000) and decrease Liabilities (Accounts Payable $20,000)

B. Increase Total Assets by a net amount of $12,000 (increase Machinery $20,000 and decrease Cash $8,000) and increase Liabilities (Notes Payable $12,000)

C. Increase Total Assets by a net amount of $20,000 (increase Machinery $12,000 and increase Cash $8,000) and decrease Liabilities (Accounts Payable $20,000)

D. Increase Assets (Machinery $12,000) and increase Liabilities (Accounts Payable $12,000)

government s role in medicare drug prices a major issue currently under debate 282858

Aug 29, 2021 | Uncategorized

Aug 29, 2021 | Uncategorized

Avnet, Inc. and subsidiaries is a leading distributor of electronic components, enterprise computer and storage products and embedded subsystems. The company is a vital link in the technology supply chain that connects over 300 of the world’s leading technology manufacturers and software developers. Avnet distributes products received as is or adds value before distribution. In addition the company provides engineering design, materials management and logistics services, system integration and configuration, and supply chain advisory services.*

Required

1. Using the Consolidated Statements of Cash Flows on page 139, prepare a summary analysis for the years ended June 30, 2007, 2006, and 2005. Analyze the cash flows for Avnet, Inc. for all three years.

2. Evaluate the creditworthiness of Avnet, Inc. based on only the cash flow statements.

3. What information from the balance sheet would be useful to a creditor in determining whether to loan Avnet, Inc. money?

balance sheet accounts for joyner company contained the 282984

Aug 29, 2021 | Uncategorized

Balance sheet accounts for Joyner Company contained the following amounts at the end of Years 1and 2:

The company’s income statement for Year 2 follows:

Equipment that had cost $40,000 and on which there was accumulated depreciation of $30,000 was sold during Year 2 for $18,000. Cash dividends totaling $15,000 were declared and paid during Year 2.

Required:

1.Using the indirect method, compute the net cash provided by operating activities for Year 2.

2.Prepare a statement of cash flows for Year 2.

3.Compute the free cash flow for Year 2.

4.Briefly explain why cash declined so sharply during the year.

fedex and united parcel service ups are the world s two leading cargo carriers by vo 447753

Aug 29, 2021 | Uncategorized

FedEx and United Parcel Service (UPS) are the world’s two leading cargo carriers by volume and revenue (The Wall Street Journal, January 27, 2004). According to the Airports Council International, the Memphis International Airport (FedEx) and the Louisville International Airport (UPS) are two of the ten largest cargo airports in the world. The following random samples show the tons of cargo per day handled by these airports. Data are in thousands of tons.

Population 1 = Memphis and population 2 = Louisville

Memphis samples are as follows: 9.1, 15.1, 8.8, 10.0, 7.5, 10.5, 8.3, 9.1, 6.0, 5.8, 12.1, and 9.3

Louisville samples are as follows: 4.7, 5.0, 4.2, 3.3, 5.5, 2.2, 4.1, 2.6, 3.4, and 7.0

a. Compute the sample mean and sample standard deviation for each airport:

x1=________

x2=________

s1=________

s2=________

accountig help 447828

Aug 29, 2021 | Uncategorized

Shelton Gallery had the following petty cash transactions in February of the current year.

Feb.

2

Wrote a $360 check, cashed it, and gave the proceeds and the petty cashbox to Bo Brown, the petty cashier.

5

Purchased bond paper for the copier for $14.55 that is immediately used.

9

Paid $36.50 COD shipping charges on merchandise purchased for resale, terms FOB shipping point. Shelton uses the perpetual system to account for merchandise inventory.

12

Paid $7.45 postage to express mail a contract to a client.

14

Reimbursed Alli Buck, the manager, $69 for business mileage on her car.

20

Purchased stationery for $68.87 that is immediately used.

23

Paid a courier $21 to deliver merchandise sold to a customer, terms FOB destination.

25

Paid $10.50 COD shipping charges on merchandise purchased for resale, terms FOB shipping point.

27

Paid $57 for postage expenses.

28

The fund had $23.62 remaining in the petty cash box. Sorted the petty cash receipts by accounts affected and exchanged them for a check to reimburse the fund for expenditures.

28

The petty cash fund amount is increased by $90 to a total of $450.

3.	Prepare the journal entries for part 2 to both (a) reimburse and (b) increase the fund amount.(Round your answers to 2 decimal places. Omit the “$” sign in your response.)

need to answer these 4 blanks

part 2

Shawnee Co. set up a petty cash fund for payments of small amounts. The following transactions involving the petty cash fund occurred in May (the last month of the company’s fiscal year).

May	1	Prepared a company check for $300.00 to establish the petty cash fund.
	15	Prepared a company check to replenish the fund for the following expenditures made since May1.
		a. Paid $93.60 for janitorial services.
		b. Paid $76.41 for miscellaneous expenses.
		c. Paid postage expenses of $52.20.
		d. Paid $68.58 to The County Gazette (the local newspaper) for an advertisement.
		e. Counted $23.01 remaining in the petty cash box.
	16	Prepared a company check for $200 to increase the fund to $500.
	31	The petty cashier reports that $349.32 cash remains in the fund. A company check is drawn to replenish the fund for the following expenditures made since May 15.
		f. Paid postage expenses of $53.73.
		g. Reimbursed the office manager for business mileage, $42.78.
		h. Paid $44.17 to deliver merchandise to a customer, terms FOB destination.
	31	The company decides that the May 16 increase in the fund was too large. It reduces the fund by $50, leaving a total of $450.

Required:

1.

Prepare journal entries to establish the fund on May 1, to replenish it on May 15 and on May 31, and to reflect any increase or decrease in the fund balance on May 16 and May 31. (Round your answers to 2 decimal places. Omit the “$” sign in your response.)

need to answer these two blanks

prepare a contribution margin format income statement answer what if questions 447830

Aug 29, 2021 | Uncategorized

Shown here is an income statement in the traditional format for a firm with a sales volume of 15,000 units

Revenues…………………………………………………………………………..$105,000

Cost of Goods Sold ($8000 + $3.60/unit)………………………………..$62,000

Gross Profit…………………………………………………………………………$43,000

Operating Expenses

Selling ($1,500 + .80/unit) …………………………………………………….$13,500

Administration ($4000 + .50/unit)…………………………………………..$11,500

Operating Income……………………………………………………………….$18,000

Required

a. Prepare an income statement in the contribution format

b. Calculate the contribution margin per unit and the contribution margin ratio

c. Calculate the firm’s operating income (or loss) if the volune changed from 15,000 to

1. 20,000 units

2. 10, 000 units

silmon corporation makes a product with the following standard costs 447831

Aug 29, 2021 | Uncategorized

Silmon Corporation makes a product with the following standard costs:

Inputs	Standard Quantity or Hours		Standard Price or Rate
Direct materials	4.7	grams	$	6.00	per gram
Direct labor	0.4	hours	$	13.00	per hour
Variable overhead	0.4	hours	$	3.00	per hour

In June the company produced 5,200 units using 25,690 grams of the direct material and 2,560 direct labor hours. During the month the company purchased 25,100 grams of the direct material at a price of $5.80 per gram. If materials used are more than the materials purchased, the additional amount is taken from inventory.

The actual direct labor rate was $13.60 per hour and the actual variable overhead rate was $2.90 per hour. The materials price variance is computed when materials are purchased. Variable overhead is applied on the basis of direct labor hours.

Required:

Compute the following variances for raw materials, direct labor, and variable overhead, assuming that the price variance for materials is recognized at point of purchase: (Input all amounts as positive values. Do not round intermediate calculations. Leave no cells blank be certain to enter “0” wherever required. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Omit the “$” sign in your response.)


a.	Direct materials quantity variance	$	(Click to select) F U None
b.	Direct materials price variance	$	(Click to select) F U None
c.	Direct labor efficiency variance	$	(Click to select) F U None
e.	Direct labor rate variance	$	(Click to select) F U None
d.	Variable overhead efficiency variance	$	(Click to select) F U None
f.	Variable overhead rate variance	$	(Click to select) F U None

help me accounting ii post to t accounts 447836

Aug 29, 2021 | Uncategorized

Sinatra Industries, Inc. uses a job order cost system. The following data summarize the operations related to production for June 2012, the first month of operations:

Materials purchased on account, $32,760.

Materials requisitioned and factory labor used:

Factory overhead costs incurred on account, $6,300.

Depreciation of machinery and equipment, $2,200.

The factory overhead rate is $58 per machine hour. Machine hours used:

Jobs completed: 301, 302, 303, and 305.

Jobs were shipped and customers were billed as follows: Job 301, $9,150; Job 302, $12,350; Job 303, $16,600.

**Post the appropriate entries to T accounts for Work in Process and Finished Goods, using the identifying letters as dates. Insert memo account balances as of the end of the month.

accounting help 447842

Aug 29, 2021 | Uncategorized

Snells is a retail department store. The following cost volume relationships were used in developing a flexible budget for the company for the current year:

	Yearly Fixed Expenses		Variable Expenses per Sales Dollar
Cost of merchandise sold			$	0.600
Selling and promotion expense	$	210,000		0.082
Building occupancy expense		186,000		0.022
Buying expense		150,000		0.041
Delivery expense		111,000		0.008
Credit and collection expense		72,000		0.002
Administrative expense		531,000		0.003

Totals	$	1,260,000	$	0.758

Management expected to attain a sales level of $12 million during the current year. At the end of the year, the actual results achieved by the company were as follows:


Net sales	$	10,500,000
Cost of goods sold		6,180,000
Selling and promotion expense		1,020,000
Building occupancy expense		420,000
Buying expense		594,000
Delivery expense		183,000
Credit and collection expense		90,000
Administrative expense		564,000

Instructions

Prepare a schedule comparing the actual results with flexible budget amounts developed for the actual sales volume of $10,500,000. Organize your schedule as a partial multiple step income statement, ending with operating income. Include separate columns for (1) flexible budget amounts, (2) actual amounts, and (3) any amount over (under) budget. Use the cost volume relationships given in the problem to compute the flexible budget amounts. (Leave no cells blank be certain to enter “0” wherever required.Amounts to be deducted should be indicated with a minus sign. Omit the “$” sign in your response.)

SNELLS Comparison of Budgeted and Actual Revenue and Expenses For the Year Ended December 31, 20__
	Flexible Budget	Actual	Over (or Under) Budget
(Click to select) Net sales Cost of goods sold Operating expenses Credit sales Net purchase	$	$	$
(Click to select) Salaries expenses Direct material Cost of goods sold Net sales Dividends payable

(Click to select) Gross profit on purchase Gross profit on sales	$	$	$

Operating expenses:
(Click to select) Delivery Selling and promotion Building occupancy Buying Administrative	$	$	$
(Click to select) Buying Building occupancy Credit and collection Inventories Delivery
(Click to select) Accounts payble Buying Direct labor Delivery Adminstrative
(Click to select) Delivery Credit and collection Adminstrative Buying Building occupancy
(Click to select) Buying Credit and collection Adminstrative Administrative Building
(Click to select) Administrative Depreciation expenses Buying Accounts payble Building

Total operating expenses	$	$	$

Operating income	$	$	$

need help acct 212 447844

Aug 29, 2021 | Uncategorized

Solex Company manufactures three products from a common input in a joint processing operation. Joint processing costs up to the split off point total $100,000 per year. The company allocates these costs to the joint products on the basis of their total sales value at the split off point. These sales values are as follows: product X, $50,000; product Y, $90,000; and product Z, $60,000.

Each product may be sold at the split off point or processed further. Additional processing requires no special facilities. The additional processing costs and the sales value after further processing for each product (on an annual basis) are shown below:

Product	Additional Processing Costs		Sales Value after Further Processing
X	$	35,000	$	80,000
Y	$	40,000	$	150,000
Z	$	12,000	$	75,000

Required:
a.	Compute the incremental profit (loss) for each product. (Loss amounts should be indicated with a minus sign. Omit the “$” sign in your response.)

	Product X	Product Y	Product Z
Incremental profit (loss)	$	$	$

b.

Which product or products should be sold at the split off point? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)

	Product X
	Product Y
	Product Z

c.

Which product or products should be processed further? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)

	Product X
	Product Y
	Product Z

solex company accounting 447845

Aug 29, 2021 | Uncategorized

Solex Company produces a high quality insulation material that passes through two production processes. Data for June for the first process follow:

	Units	Completion with Respect to Materials			Completion with Respect to Conversion
Work in process inventory, June 1	74,000	65	%		30	%
Work in process inventory, June 30	54,000	40	%		20	%

Materials cost in work in process inventory, June 1				$	58,800
Conversion cost in work in process inventory, June 1				$	17,500
Units started into production					262,400
Units transferred to the next process					282,400
Materials cost added during June				$	400,240
Conversion cost added during June				$	252,244

1.	Assume that the company uses the weighted average method of accounting for units and costs. Determine the equivalent units for June for the first process.

	Materials	Conversion
Equivalent units of production

2.	Compute the costs per equivalent unit for June for the first process. (Round your answers to 2 decimal places.)

	Materials	Conversion
Cost per equivalent unit	$	$

3.	Determine the total cost of ending work in process inventory and the total cost of units transferred to the next process in June. (Round your intermediate calculations to 2 decimal places. Round your final answer to whole dollar amount.)

	Total
Cost of ending work in process inventory	$
Cost of units transferred to the next process	$

accounting question asap 447849

Aug 29, 2021 | Uncategorized

Please solve these 4 qurstions. Please answer these very accurately ASAP, then I’ll give you high points(3000 pt).

Feb. 26

The company paid cash to Lyn Addie for eight days%u2019 work at $145 per day.

Mar. 25

The company sold merchandise with a $2,102 cost for $2,940 on credit to Wildcat Services, invoice dated March 25.

1.

Assume that Lyn Addie is an unmarried employee. Her $1,160 of wages are subject to no deductions other than FICA Social Security taxes, FICA Medicare taxes, and federal income taxes. Her federal income taxes for this pay period total $116. Compute her net pay for the eight days%u2019 work paid on February 26. FICA tax rates applicable are: 6.2% for Social security and 1.45% Medicare. (Round your intermediate calculations and final answer to 2 decimal places. Omit the “$” sign in your response.)

2.	Record the journal entry to reflect the payroll payment to Lyn Addie as computed in part 1. (Round your answers to 2 decimal places. Omit the “$” sign in your response.)

3 Record the journal entry to reflect the (employer) payroll tax expenses for the February 26 payroll payment. Assume Lyn Addie has not met earnings limits for FUTA and SUTA%u2014the FUTA rate is 0.8% and the SUTA rate is 4% for Business Solutions. (Round your answers to 2 decimal places. Omit the “$” sign in your response.)

4.	Record the entry(ies) for the merchandise sold on March 25 if a 4% sales tax rate applies. (Round your answers to 2 decimal places. Omit the “$” sign in your response.)

accounting 447860

Aug 29, 2021 | Uncategorized

Southwest Auto Parts has a seat manufacturing department that uses activity based costing for which the following information is available. Activity Allocation Base Cost Allocation Rate Purchasing # of Purchase Orders $50 per Purchase Order Assembling # of Parts $.50 per Part Packaging # of Finished Seats $1 per Finished Seat Each auto seat has 20 parts. Direct materials cost per seat is $11. Southwest has just been asked to bid on 50,000 seats that would be used on the Lexus RX300. Southwest will use a total of 200 purchase orders if Lexus accepts its bid. 1. In good order and form, compute the total cost that Southwest will incur to produce the number seats required by the bid. 2. Compute the average cost per seat. 3. Suppose that instead of an ABC system, Southwest had a traditional product costing system that allocates all costs other than direct materials at the rate of $65 per direct labor hour. The seat order will require 10,000 direct labor hours. What price will Southwest bid using this system’s total cost?

managerial accounting question 447865

Aug 29, 2021 | Uncategorized

Speedy Parcel Service operates a fleet of delivery trucks in a large metropolitan area. A careful study by the company%u2019s cost analyst has determined that if a truck is driven 165,000 miles during a year, the average operating cost is 12.9 cents per mile. If a truck is driven only 110,000 miles during a year, the average operating cost increases to 16.2 cents per mile.

Required:

1.

Using the high low method, estimate the variable and fixed cost elements of the annual cost of truck operation

Here is my answer but it is not correct according to the websire

1. .129/mile * 165000 miles = 21285 total cost

2. .162/mile * 110000 miles = 17820 total cost

3. 21285 tc 17820 tc = 3465 difference in total cost

4. 165000 mi 110000 mi = 55000 difference in total miles

5. 3465 cost difference / 55000 miles difference = .063 vc per mile

6. 21285 total cost (from step 1) 3465 variable cost (from step 5) = 17820 fixed cost

7. 17820 fixed cost / 165000 miles = .108 fc per mile

Is this correct?

cost accounting will award full point 447869

Aug 29, 2021 | Uncategorized

Sport Luggage Inc. makes high end hard sided luggage for sports equipment. Data concerning three of the company%u2019s most popular models appear below.

	Ski Vault		Golf Caddy		Fishing Quiver
Selling price per unit	$	260	$	350	$	245
Variable cost per unit	$	100	$	150	$	105
Plastic injection molding machine processing time required to produce one unit	6 minutes		12 minutes		11 minutes
Pounds of plastic pellets per unit	15 pounds		15 pounds		12 pounds

Required:
1a.	The total time available on the plastic injection molding machine is the constraint in the production process. What is contribution margin per unit of the constrained resources for Ski Vault, Golf Caddy and Fishing Quiver? (Round your answers to 2 decimal places. Omit the “$” sign in your response.)

	Ski Vault		Golf Caddy		Fishing Quiver
Contribution margin	$	per minute	$	per minute	$	per minute

1b.

Which product would be the most profitable use of this constraint?

	Ski Vault
	Fishing Quiver
	Golf Caddy

1c.

Which product would be the least profitable use of this constraint?

	Ski Vault
	Fishing Quiver
	Golf Caddy

2a.

A severe shortage of plastic pellets has required the company to cut back its production so much that the plastic injection molding machine is no longer the bottleneck. Instead, the constraint is the total available pounds of plastic pellets. What is contribution margin per unit of the constrained resources for Ski Vault, Golf Caddy and Fishing Quiver? (Round your answers to 2 decimal places. Omit the “$” sign in your response.)

	Ski Vault		Golf Caddy		Fishing Quiver
Contribution margin	$	per pound	$	per pound	$	per pound

2b.

Which product would be the most profitable use of this constraint?

	Golf Caddy
	Ski Vault
	Fishing Quiver

2c.

Which product would be the least profitable use of this constraint?

	Golf Caddy
	Ski Vault
	Fishing Quiver

3.

Which product has the largest unit contribution margin?

	Golf Caddy
	Fishing Quiver
	Ski Vault

cost accounting 447875

Aug 29, 2021 | Uncategorized

Stanley Clipper, now retired, owns the Campus Barber Shop. He employs 5 barbers and pays each a base rate of $500 a month. One of the barbers serves as manager and receives an extra $300 per month. In addition to the base rate, each barber also receives a commission of $3 per hair cut. A barber can do as many as 20 haircuts a day, but the average is 14 haircuts per day. The Campus Barber Shop is open 24 days a month. You can safely ignore income taxes.

Other costs are incurred as follows:

Advertising $200 per month

Rent $400 per month

Barber Supplies $.90 per haircut

Utilities $175 per month plus $.35 per haircut

Magazines $25 per month

Cleaning Supplies $.15 per hair cut

Stanley currently charges $8 per haircut.

(a) Compute the break even point in (1) number of haircuts, (2) total sales dollars, and (3) as a percentage of capacity.

(b) In March, 1,400 haircuts were given. Compute the operating profits for this month.

(c) Stanley wants a $2,160 operating profit in April. Compute the number of haircuts that must be given in order to acheive that goal.

(d) If 1,500 haircuts are given in April, compute the selling price that would have to be charged in order to have $2,160 in operating profits.

accounting question journalizing and related 447882

Aug 29, 2021 | Uncategorized

Stellar Inc. is a construction company specializing in custom patios. The patios are constructed of concrete, brick, fiberglass, and lumber, depending upon customer preference. On June 1, 2012, the general ledger for Stellar Inc. contains the following data.

Raw Materials Inventory		$4,943		Manufacturing Overhead Applied		$38,417
Work in Process Inventory		$6,521		Manufacturing Overhead Incurred		$37,252

Subsidiary data for Work in Process Inventory on June 1 are as follows.

Job Cost Sheets
	Customer Job
Cost Element	Gannon	Rosenthal	Linton
Direct materials	$706	$942	$1,059
Direct labor	377	636	683
Manufacturing overhead	471	794	853
	$1,554	$2,372	$2,595

During June, raw materials purchased on account were $5,767, and all wages were paid. Additional overhead costs consisted of depreciation on equipment $824 and miscellaneous costs of $471 incurred on account.

A summary of materials requisition slips and time tickets for June shows the following.

Customer Job	Materials Requisition Slips	Time Tickets
Gannon	$942	$530
Koss	2,354	942
Rosenthal	589	424
Linton	1,530	1,412
Gannon	353	459
	5,768	3,767
General use	1,766	1,412
	$7,534	$5,179

Overhead was charged to jobs at the same rate of $1.25 per dollar of direct labor cost. The patios for customers Gannon, Rosenthal, and Linton were completed during June and sold for a total of $22,245. Each customer paid in full.

A.

Journalize the June transactions: (i) for purchase of raw materials, factory labor costs incurred, and manufacturing overhead costs incurred; (ii) assignment of direct materials, labor, and overhead to production; and (iii) completion of jobs and sale of goods.

B.

Post the Entries to Work in Process Inventory

C.

Reconcile the balance in Work In Process Inventory with the costs of unfinished goods

D.

Prepare a Cost of Goods manufactured Schedule for June.

If you could please show me your work that would be great. Thanks so much!

accounting help job order costing 447889

Aug 29, 2021 | Uncategorized

Stine Manufacturing uses a job order costing system. On May 1, the company has a balance in Work in Process Inventory of $4,020 and two jobs in process: Job No. 429 $2,390, and Job No. 430 $1,630. During May, a summary of source documents reveals the following.

Job Number Materials requsition slips Labor Time Tickets

429 2870 2210

430 3710 3580

431 4820 8080

11400 13870

General Use 907 1440

12307 15310

Stine Manufacturing applies manufacturing overhead to jobs at an overhead rate of 60% of direct labor cost. Job No. 429 is completed during the month.

A

Prepare summary journal entries to record (DEBIT AND CREDIT FOR EACH): (i) the requisition slips, (ii) the time tickets, (iii) the assignment of manufacturing overhead to jobs, and (iv) the completion of Job No. 429.

B

Post the entries to Work in Process Inventory, and prove the agreement of the control account with the job cost sheets.

If you could show me your work, that would be wonderful. Thanks!

cooporation stock 447896

Aug 29, 2021 | Uncategorized

The stockholders%u2019 equity accounts of Ashley Corporation on January 1, 2012, were as follows.

Preferred Stock (8%, $49 par, cumulative, 10,300 shares authorized)		$ 377,300
Common Stock ($1 stated value, 2,083,500 shares authorized)		1,345,400
Paid in Capital in Excess of Par%u2014Preferred Stock		102,600
Paid in Capital in Excess of Stated Value%u2014Common Stock		1,435,300
Retained Earnings		1,780,500
Treasury Stock (10,800 common shares)		43,200

During 2012, the corporation had the following transactions and events pertaining to its stockholders%u2019 equity.

Feb. 1		Issued 24,600 shares of common stock for $121,900.
Apr. 14		Sold 5,700 shares of treasury stock%u2014common for $32,700.
Sept. 3		Issued 4,700 shares of common stock for a patent valued at $34,400.
Nov. 10		Purchased 1,100 shares of common stock for the treasury at a cost of $5,900.
Dec. 31		Determined that net income for the year was $401,300.

accounting ratio 447900

Aug 29, 2021 | Uncategorized

Stop n Shop operates a downtown parking lot containing 800 parking spaces. The lot is open 2,500 hours per year. The parking charge per car is 50 cents per hour; the average customer parks two hours. Stop n Shop rents the lot from a development company for $7,250 per month. The lot supervisor is paid $24,000 per year. Five employees who handle the parking of cars are paid $300 per week for 50 weeks, plus $600 each for the two week vacation period. Employees rotate vacations during the slow months when four employees can handle the reduced load of traffic. Lot maintenance, payroll taxes, and other costs of operating the parking lot include fixed costs of $3,000 per month and variable costs of 5 cents per parking space hour.

b.	What is the contribution margin ratio? What is the annual break even point in dollars of parking revenue?


Contribution margin ratio	%
Break even sales volume in dollars	$

Suppose that the five employees were taken off the hourly wage basis and paid 30 cents per car parked, with the same vacation pay as before.

c 1

How would this change the contribution margin ratio and total fixed costs? (Hint: The variable costs per parking space hour will now include 15 cents, or one half of the 30 cents paid to employees per car parked, because the average customer parks for two hours.)


New contribution margin ratio	%
Fixed costs under new arrangement	$

c 2

What annual revenue would be necessary to produce operating income of $300,000 under these circumstances?

Annual sales revenue

$

bmgt 221 managerial accounting 447905

Aug 29, 2021 | Uncategorized

Stratford Company distributes a lightweight lawn chair that sells for $120 per unit. Variable expenses are $60.00 per unit, and fixed expenses total $180,000 annually.

Required:
1.	What is the product’s CM ratio? (Do not round intermediate calculations. Omit the “%” sign in your response.)

CM ratio

%

2.	Use the CM ratio to determine the break even point in sales dollars. (Do not round intermediate calculations. Round your answer to the nearest dollar amount. Omit the “$” sign in your response.)

Break even point in sales dollars

$

3.	The company estimates that sales will increase by $50,000 during the coming year due to increased demand. By how much should net operating income increase? (Omit the “$” sign in your response.)

Net operating income increases by

$

4.	Assume that the operating results for last year were as follows:


Sales	$	3,000,000
Variable expenses		1,500,000

Contribution margin		1,500,000
Fixed expenses		180,000

Net operating income	$	1,320,000

a.	Compute the degree of operating leverage at the current level of sales. (Round your answer to 2 decimal places.)

Degree of operating leverage

b.	The president expects sales to increase by 11% next year. By how much should net operating income increase? (Round your intermediate calculations to 2 decimal places and final answer to the nearest dollar amount. Omit the “$” sign in your response.)

Net operating income increases by

$

5.	Refer to the original data. Assume that the company sold 45,000 units last year. The sales manager is convinced that a 12% reduction in the selling price, combined with a $68,000 increase in advertising expenditures, would increase annual unit sales by 50%.

a.

Prepare two contribution format income statements, one showing the results of last year%u2019s operations and one showing what the results of operations would be if these changes were made.(Input all amounts as positive values except losses which should be indicated by minus sign. Do not round intermediate calculations. Round proposed units to the nearest whole number. Round your “Per unit” answers to 2 decimal places.Omit the “$” sign in your response.)

Last Year
45,000 units

Proposed
units

	Total	Per Unit	Total	Per Unit
(Click to select) Fixed expenses Net operating income (loss) Variable expenses Contribution margin Sales	$	$	$	$
(Click to select) Sales Variable expenses Net operating income (loss) Fixed expenses Contribution margin

(Click to select) Contribution margin Fixed expenses Variable expenses Sales Net operating income (loss)		$		$
(Click to select) Contribution margin Fixed expenses Sales Net operating income (loss) Variable expenses

(Click to select) Sales Net operating income (loss) Variable expenses Contribution margin Fixed expenses	$		$

b.

Would you recommend that the company do as the sales manager suggests?

	Yes
	No

6.

Refer to the original data. Assume again that the company sold 45,000 units last year. The president feels that it would be unwise to change the selling price. Instead, he wants to increase the sales commission by $2.50 per unit. He thinks that this move, combined with some increase in advertising, would double annual unit sales. By how much could advertising be increased with profits remaining unchanged? Do not prepare an income statement; use the incremental analysis approach. (Omit the “$” sign in your response.)

The amount by which advertising can be increased is

$

accounting 447919

Aug 29, 2021 | Uncategorized

Superior Manufacturing Company has the following cost and expense data for last year, which ended December 31^st.

Beginning Raw Materials $ 30,000

Ending Raw Materials 20,000

Raw Materials Purchases 205,000

Indirect Materials 15,000

Beginning Work in Progress 80,000

Ending Work in Progress 50,000

Beginning Finished Goods 110,000

Ending Finished Goods 120,000

Direct Labor 350,000

Factory Insurance 14,000

Property Taxes on Factory 6,000

Sales Revenue 1,500,000

Delivery Expense 100,000

Sales Office Salaries 150,000

Indirect Labor 90,000

Depreciation on Factory Equipment 40,000

Utilities for Factory 65,000

Depreciation on Factory Building 24,000

Administrative Salaries 335,000

In good order and form, complete the following requirements.

1. Prepare a Cost of Goods Manufactured Schedule for Superior.

2. Prepare a Cost of Goods Sold Schedule for Superior

3. Prepare an Income Statement for Superior

valdivieso roofing is considering the purchase of a crane that would cost 137 885 447932

Aug 29, 2021 | Uncategorized

1. Valdivieso Roofing is considering the purchase of a crane that would cost $137,885, would have a useful life of 9 years, and would have no salvage value. The use of the crane would result in labor savings of $23,000 per year. The internal rate of return on the investment in the crane is closest to:

A. 6%

B. 8%

C. 11%

D. 9%

2. The management of Kissinger Corporation is investigating automating a process. Old equipment, with a current salvage value of $23,000, would be replaced by a new machine. The new machine would be purchased for $330,000 and would have a 6 year useful life and no salvage value. By automating the process, the company would save $108,000 per year in cash operating costs. The simple rate of return on the investment is closest to:

A. 17.3%

B. 16.7%

C. 16.1%

D. 32.7%

3. Rennin Dairy Corporation is considering a plant expansion decision that has an estimated useful life of 20 years. This project has an internal rate of return of 15% and a payback period of 9.6 years. How would a decrease in the expected salvage value from this project in 20 years affect the following for this project?

Internal R.O.R Decrease Payback Period Decrease

A) Decrease Decrease

B) No Effect Decrease

C) Decrease No Effect

D) Increase No Effect

E) No Effect No Effect

A, B, C, D, or E?

ethical scenario 447501

Aug 29, 2021 | Uncategorized

Scenario John Haddock owns 75 percent of Haddock Corporation. The other 25 percent of the stock is held by Johns wife, Marsha. You are a tax manager assigned to prepare the corporate by Coupon Companion Plugin” id=”_GPLITA_0″ href=”http://www.topmarkdissertations.com/#” class=”c2″ name=”_GPLITA_0″>tax return for Haddock. While working on the return, you note that Haddock Corp. pays rent to John for a building he owns with his son, John, Jr. The rent being paid is at least three times the normal rate for rentals of similar property in that area of town. You report this observation to the partner on the engagement. She tells you that it is all right to deduct the payments because Haddock Corp. has been doing it for several years, and the IRS never has objected. Under your firms policy, managers sign the tax return for clients.

1. Would you sign this tax return? Why or why not? Be sure to cite research that supports your position.
2. What potential ethics issues do you see in this situation

business law sec 447504

Aug 29, 2021 | Uncategorized

Scissorwire Inc. sells shares of its stock to the public, with each share valued at $16. After a year, the company incurs a loss and the price of the stock drops to $5. The company reveals that it had deliberately not registered with the SEC before going public and that it has no money to pay the investors. Which of the following holds well in this context?

Answer

	a.	Scissorwire Inc. can register with the SEC at any point after the dip in shares.
	b.	The U.S. government can file a criminal lawsuit against Scissorwire Inc. to seek criminal penalties.
	c.	The investors have been negligent in not verifying registration before purchase of shares and cannot rescind their purchase.
	d.	Scissorwire Inc. is liable for the violation of the Securities Exchange Act of 1934.

managerial accounting question 447505

Aug 29, 2021 | Uncategorized

Seasons Manufacturing manufactures a product with a unit variable cost of $100 and a unit sales price of $176. Fixed manufacturing costs were $480,000 when 10,000 units were produced and sold. The company has a one time opportunity to sell an additional 1,000 units at $140 each in a foreign market which would not affect its present sales. If the company has sufficient capacity to produce the additional units, acceptance of the special order would affect net income as follows:

Income would increase by $140,000.

Income would increase by $40,000.

Income would decrease by $8,000.

Income would increase by $8,000.

inventory cost flow method 447513

Aug 29, 2021 | Uncategorized

Select the following sentences to the inventory cost flow method they describe.

Answers: net income for the year will be overstated, net income for the year will be understated or net income for the year will not be affected.

1. Merchandise was purchased FOB shipping point on the last day of the year. The cost of the merchandise purchased was not included in ending inventory.	Select Net income for the current year will be overstated. Net income for the current year will be understated. Net income for the current year will not be affected. Item 1
2. Merchandise was purchased FOB destination on the last day of the year. The cost of the merchandise purchased was not included in ending inventory.	Select Net income for the current year will be overstated. Net income for the current year will be understated. Net income for the current year will not be affected. Item 2
3. Merchandise held on consignment was included in the count of ending inventory.	Select Net income for the current year will be overstated. Net income for the current year will be understated. Net income for the current year will not be affected. Item 3
4. A consignor included merchandise in the hands of the consignee in ending inventory.	Select Net income for the current year will be overstated. Net income for the current year will be understated. Net income for the current year will not be affected. Item 4
5. Beginning inventory was understated due to an error in last year’s inventory count.	Select Net income for the current year will be overstated. Net income for the current year will be understated. Net income for the current year will not be affected. Item 5
6. Merchandise that was sold and shipped FOB destination on the last day of the year was not included in the seller’s ending inventory..	Select Net income for the current year will be overstated. Net income for the current year will be understated. Net income for the current year will not be affected. Item 6
7. Merchandise that was sold and shipped FOB shipping point on the last day of the year was not included in the seller’s ending inventory.	Select Net income for the current year will be overstated. Net income for the current year will be understated. Net income for the current year will not be affected. Item 7
8. Last year’s ending inventory was recorded as $10,000. The actual inventory on hand the end of last year was $12,000.

newhouse reality 447514

Aug 29, 2021 | Uncategorized

Selected account balances before adjustment for Newhouse Realty at March 31, 2012, the end of the current year, are as follows:

Data needed for year end adjustments are as follows:

a. Unbilled fees at March 31, $13,500.

b. Supplies on hand at March 31, $950.

c. Rent expired, $4,000.

d. Depreciation of equipment during year, $1,500.

e. Unearned fees at March 31, $2,500.

f. Wages accrued but not paid at March 31, $2,200.

Instructions

1. Journalize the six adjusting entries required at March 31, based on the data presented.

2. What would be the effect on the income statement if adjustments (a) and (f) were omitted at the end of the year?

3. What would be the effect on the balance sheet if adjustments (a) and (f) were omitted at the end of the year?

4. What would be the effect on the %u201CNet increase or decrease in cash%u201D on the statement of cash flows if adjustments (a) and (f) were omitted at the end of theyear?

ap18 5a a 447515

Aug 29, 2021 | Uncategorized

Selected financial data of ABC and XYZ for a recent year are presented here (in millions).

	ABC	XYZ
	Corporation	Stores, Inc.
Income Statement Data for Year
Net sales	$61,481	$374,339
Cost of goods sold	41,846	286,796
Selling and administrative expenses	16,250	70,904
Interest expense	687	1,752
Other income (expense)	1,879	4,246
Income tax expense	1,667	6,783
Net income	$ 2,910	$ 12,350

Balance Sheet Data (End of Year)
Current assets	$18,498	$47,106
Noncurrent assets	25,132	115,600
Total assets	$43,630	$162,706

Current liabilities	$ 11,430	$ 58,112
Long term debt	17,548	40,796
Total stockholders’ equity	14,652	63,798
Total liabilities and stockholders’ equity	$43,630	$162,706

Beginning of Year Balances
Total assets	$37,722	$151,727
Total stockholders’ equity	15,734	61,390
Current liabilities	10,823	51,702
Total liabilities	22,062	89,558

	Other Data
Average net receivables	$6,873	$ 3,339
Average inventory	6,345	34,538
Net cash provided by operating activities	4,632	20,631

would auctioning broadcast licenses be more efficient than having the federal commun 447526

Aug 29, 2021 | Uncategorized

Chapter 10: Exercise Questions 1.) Would auctioning broadcast licenses be more efficient than having the Federal Communications Commission (FCC) assign licenses on basis designed by the FCC? Explain.

2.) Which of the three types of government policies antitrust, social regulation, or economic regulation is the basis for each of the following? Who benefits from the policy?

a.) Beautician education standards b.) Certified public accounting requirements c.) Liquor licensing d.) Justice Department Guidelines e.) The Clean Air Act f.) The nutrition and labeling act

3.) “The Japanese or Chinese or Koreans or others, are beating us at every step. We must act as they do. We must allow and encourage cooperation among firms, and we must develop partnerships between business and government.” Evaluate this argument.

4.) “The government should not be the sole provider of a good or service unless there is a compelling reason.” What compelling reason? Would you agree that issuing drivers’ licenses must be left to the government?

5.) What is a natural monopoly? Can you think of an example of a natural monopoly? If you can, explain why you consider it a natural monopoly.

Chapter 11: Exercise Questions

1.) What types of products are phone services and electricity?

2.) Why does a firm spend an enormous amount on advertising when the ads provide consumers virtually no information? For instance, what does the advertisement showing the Rock of Gibraltar and suggesting that we should “own a piece of the rock” tell us?

3.) Why do consumers pay twice as much for Bayer aspirin than for generic aspirin when they know that the two are chemically identical?

4.) What does it mean to say that a firm should devote resources to an activity as long as society values that activity more than its values the resources allocated to that activity?

5.) Using the following Marginal Revenue and Marginal Cost, determine the profit maximizing price and quantity: Output MC MR 0 0 0 1 $30 $80 2 $50 $80 3 $80 $80 4 $120 $80 5 $170 $80

6.) Explain why the rule MR = MC defines profit maximization.

7.) How long has Wal Mart made positive economic profits? How long has Starbucks earned positive economic profits? Has entrepreneurs been able to innovate and otherwise compete with Wal Mart and Starbucks? Explain.

the firm has fixed costs of 10 million per year and a variable cost of 1 per bag no 447534

Aug 29, 2021 | Uncategorized

The firm has fixed costs of $10 million per year and a variable cost of $1 per bag no matter how many bags are produced.

a. If this firm kept on increasing its output level, would Average Total Cost per bag ever increase? Is this a decreasing cost industry?

b. If you wished to regulate this monopoly by charging the socially optimal price, what price would you charge? At that price, what would be the size of the firm’s profit or loss? Would the firm want to exit the industry?

c. You find out that if you set the price at $2 per bag, consumers will demand 10 million bags. How big will the firm’s profit or loss be at that price?

d. If consumers instead demanded 20 million bags at a price of $2 per bag, how big would the firm’s profit or loss be?

e. Suppose that demand is perfectly inelastic at 20 million bags, so that consumers demand 20 million bags no matter what the price is. What price should you charge if you want the firm to earn only a fair rate of return? Assume as always that Total Cost includes a normal profit.

oxford corp is considering refunding a 30 000 000 annual payment 12 percent coupon 3 447542

Aug 29, 2021 | Uncategorized

Oxford Corp. is considering refunding a $30,000,000, annual payment, 12 percent coupon, 30 year bond issue that was issued five years ago. It has been amortizing $2 million of flotation costs on these bonds over their 30 year life. The company could sell a new issue of 25 year bonds at an annual interest rate of 10 percent in today’s market. A call premium of 12 percent would be required to retire the old bonds, and flotation costs on the new issue would amount to $2 million. Oxford’s marginal tax rate is 30 percent. The new bonds would be issued when the old bonds are called.

What is the required after tax refunding investment outlay, i.e., the cash outlay at the time of the refunding?

(a) 4,520,000

(b) 3,020,000

(c) 4,020,000

(d) 5,020,000

brown company s bank statement for september 30 showed a cash balance of 1 350 447570

Aug 29, 2021 | Uncategorized

Brown Company’s bank statement for September 30 showed a cash balance of $1,350. The company’s Cash account in its general ledger showed a $995 debit balance. The following information was also available as of September 30.

A. A customer’s check for $100 marked NSF was returned to Brown Company by the bank. In addition, the bank charged the company’s account a $25 processing fee.

B. The September 30 cash receipts, $1,250, were placed in the bank’s night depository after banking hours on that date and this amount did not appear on the September 30 bank statement.

C. A $15 debit memorandum for checks printed by the September 30 bank was included with the canceled checks.

D. Outstanding checks amounted to $1,145.

E. A customer’s note for $900 was collected by the bank. A collection fee of $25 was deducted by the bank and the difference was deposited in the account.

F. Included with the canceled checks was a check for $275, drawn on another company, Browne Inc.

(a) Prepare a bank reconciliation as of September 30.

(b) Prepare any necessary adjusting journal entries necessary as a result of the bank reconciliation.

a company has 25 per unit in variable costs and 1 000 000 per year in fixed costs 447602

Aug 29, 2021 | Uncategorized

3.2) A company has $25 per unit in variable costs and $1,000,000 per year in fixed costs. Demand is estimated to be 100,000 units annually. What is the price if a markup of 40% on total cost is used to determine the price?

3.4) A manufacturing company produces and sells 20,000 units of a single product. Total production costs are $14/unit. If the total sales are $560,000 what mark up percentage is the company using?

3.5) A company has a total cost of $50.00 per unit at a volume of 100,000 units. The variable cost per unit is $20.00. What would the price be if the company expected a volume of 120,000 units and used a markup of 50%?

3.9) A Shavon company has total fixed costs of $6,000,000 and total variable cost of $3,000,000 at a volume level of 300,000 units. What price would be charged if the company used cost plus pricing and a markup of 25%?

an individualinvesting in preferred stock receiving a before tax preferred yield of 447608

Aug 29, 2021 | Uncategorized

An individualinvesting in preferred stock receiving a before tax preferred yield of 8.5% and having a tax rate of 25% would receive an after tax preferred yield of:

A corporate investor of preferred stock receiving a before tax preferred yield of 10.2%, and having a corporate tax rate of 30% would receive an after tax preferred yield of:

Tricki Corp stock sells for $60 rights on, and the subscription price is $50. Ten rights are required to purchase one share. Tomorrow the stock of Tricki will go ex rights. What is the price of Tricki expected to be when it beings trading ex rights?

Dixon Corporation is considering a public offering of common stock. The firm will offer one million shares of common stock for sale. The estimated selling price is $30 per share with Dixon Corp. receiving $26.25 per share after the offering. Registration fees are estimated at $275,000.

What is the spread in percent?

What are the total expenses for the issue?

aa electronics which reports a net income equal to 9200 has the following balance sh 447651

Aug 29, 2021 | Uncategorized

AA Electronics, which reports a net income equal to $9200, has the following balance sheet. Current assets $110000, Net fixed assets $40000, total assets $150000, current liabilites $27500, long term debt $32500, common equity $90000, total liabilities and equity $150000. The company’s new owner thinks that inventories, which are currently $70000, are excessive and can be lowered to the point where the current ratio is equal to the industry average of 2.0X without affecting either sales or net income. If inventories are sold off and not replaced so as to reduce the current ratio to 2.0X, the funds generated would be used to reduce common equity (stock can be repurchased at book value). If everything else stays the same, including net income, by how much will the ROE change from such an inventory sell off?

an airline promotion to business travellers is based on the assumption that two thir 447662

Aug 29, 2021 | Uncategorized

An airline promotion to business travelers is based on the assumption that no more than two thirds of business travelers use a laptop computer on overnight business trips.

a. State the hypotheses that can be used to test whether more than two thirds of business travellers use a laptop computer on overnight business trips.
H0: p
Ha: p

b. What is the sample proportion from an American Express sponsored survey that found 363 of 543 business travelers use a laptop computer on overnight business trips (to 4 decimals)?

c. What is the p value (to 4 decimals)?

d. Using %u03B1 = .05, can you conclude that the proportion of business travelers who use a laptop computer on overnight business trips is greater than two thirds?

as a member of the finance team you have been asked to forecast the upcoming year rs 447672

Aug 29, 2021 | Uncategorized

As a member of the finance team, you have been asked to forecast the upcoming year’s operational budget for Krona Community Hospital. Click here for last year’s budget. After reviewing specific data, internal input, and external input from various sources, you find that the executive management team would like the budget to reflect the following:
•10% increase in inpatient revenue
•15% increase in outpatient revenue
•5% increase in pharmacy revenue
•15% increase in home health and hospital revenue
•10% increase in payroll and benefits

Note: The budget should be formatted to reflect the percentage increase or decrease from last year’s budget.

Additionally, provide discussion on the following:
•How might you increase revenue in each of the areas? Think outside of the box, and perform research to determine current trends in those areas.
•Why would there be a need to increase payroll, particularly nurses’ salaries?
•Provide an explanation as to how the Krona Community Hospital may be able to achieve an increase in the revenue areas that the chief executive officer (CEO) wishes you to address.

burns industries currently manufactures and sells 20 000 power saws per month 447695

Aug 29, 2021 | Uncategorized

Burns Industries currently manufactures and sells 20,000 power saws per month, although it has the capacity to produce 35,000 units per month. At the 20,000 unit per month level of production, the per unit cost is $65, consisting of $40 in variable costs and $25 in fixed costs. Burns sells its saws to retail stores for $80 each. Allen Distributors has offered to purchase 5,000 saws per month at a reduced price. Burns can manufacture these additional units with no change in its present level of fixed manufacturing costs.

Refer to the information above. Assume that Allen Distributors offers to purchase the additional 5,000 saws at a price of $47 per unit. If Burns accepts this price, Burns’ monthly gross profit on sales of power saws will:

Increase by $35,000.

Decrease by $240,000.

Decrease by $40,000.

Increase by $185,000.

clarion contractors completed the following transactions and events involving the pu 447713

Aug 29, 2021 | Uncategorized

Clarion Contractors completed the following transactions and events involving the purchase and operation of equipment in its business.

2010

Jan. 1

Paid $255,440 cash plus $15,200 in sales tax and $2,500 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four year life and a $34,740 salvage value. Loader costs are recorded in the Equipment account.

Jan. 3

Paid $3,660 to enclose the cab and install air conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage value of the loader by another $1,110.

Dec. 31 Recorded annual straight line depreciation on the loader.

1/1 Equipment 273140

Cash273140

1/3 Equipment 3660

Cash 3660

Aug 29, 2021 | Uncategorized

Quick Start Company just starting business made the following four inventory purchases in June:

Date Total units Total amount

June 1 150 $ 780

June 10 200 1,170

June 15 200 1,260

June 28 150 990

A physical count of merchandise inventory on June 30 reveals that there are 250 units on hand.

33. Using the LIFO inventory method, the value of the ending inventory on June 30 is

a. $1,365

b. $1,620

c. $2,580

d. $2,835

34. Using the FIFO inventory method, the amount allocated to cost of goods sold for June is

a. $1,620

b. $2,290

c. $2,580

d. $2,835

35. Using the average cost method, the amount allocated to the ending inventory on June 30 is

a. $4,200

b. $2,700

c. $1,150

d. $1,500

36. Which of the following inventory costing method uses actual instead of estimate cost?

a. FIFO method

b. LIFO method

c. Average cost method

d. Specific identification method

accounting question ratio 447403

Aug 29, 2021 | Uncategorized

Rainbow Paints operates a chain of retail paint stores. Although the paint is sold under the Rainbow label, it is purchased from an independent paint manufacturer. Guy Walker, president of Rainbow Paints, is studying the advisability of opening another store. His estimates of monthly costs for the proposed location are:


Fixed costs:
Occupancy costs	$	3,160
Salaries		3,640
Other		1,200
Variable costs (including cost of paint)	$	6	per gallon

Although Rainbow stores sell several different types of paint, monthly sales revenue consistently averages $10 per gallon sold.

a.	Compute the contribution margin ratio and the break even point in dollar sales and in gallons sold for the proposed store.


Contribution margin ratio	%
Break even sales volume in dollars	$
Break even sales volume in gallons

c.	Walker thinks that the proposed store will sell between 2,200 and 2,600 gallons of paint per month. Compute the amount of operating income that would be earned per month at each of these sales volumes.

Projected operating income at various levels
2,200 Gallons	$
2,600 Gallons	$

please give just the answers for this problem ty 447415

Aug 29, 2021 | Uncategorized

You have received the bank statement for your company’s account and need to reconcile it with your cash T account. Your records show an ending balance for the month of $12,792.40 while the bank’s records show an ending balance of $12,396.36.

The bank charged $8.00 in service fees and paid $25.25 in interest. All but three checks written during the month were processed by the bank without incident during the month. The three exceptions were:

(1)	Check #841 was correctly processed by the bank as $801.27 but was mistakenly recorded by you as $501.27.

(2)	Check #853 for $63.57 had not yet been processed by the bank.

(3)	Check #855 for $763.46 had not yet been processed by the bank.

All but two of the deposits made during the month were processed by the bank without incident. The two exceptions were:

(1)	A customer check for $325.95, which had been deposited during the month, was returned NSF.

(2)	A deposit totaling $614.37 had not yet been processed by the bank.

Using the information provided above, prepare a bank reconciliation. (Input all amounts as positive values. Round your answers to 2 decimal places. Omit the “$” sign in your response.)

Bank Statement		Company’s Books
Ending cash balance per bank	$	Ending cash balance per books	$
Additions		Additions
(Click to select) Error correction Bank service fees Deposit in transit NSF check Outstanding checks		(Click to select) Error correction Outstanding checks NSF check Interest received from bank Bank service fees


Deductions		Deductions
(Click to select) Outstanding check #853 Outstanding check #855 NSF check Deposit in transit Interest received from bank		(Click to select) Bank service fees Error correction Deposit in transit NSF check Interest received from bank
(Click to select) Outstanding check #853 Interest received from bank Outstanding check #855 Deposit in transit NSF check		(Click to select) Interest received from bank NSF check Error correction Bank service fees Deposit in transit
		(Click to select) NSF check Deposit in transit Interest received from bank Error correction Bank service fees

Up to date ending cash balance	$	Up to date ending cash balance	$

two contribution format income statements please use my problem and explain how you 447424

Aug 29, 2021 | Uncategorized

Refer to the original data. Assume that the company sold 31,000 units last year. The sales manager is convinced that a 15% reduction in the selling price, combined with a $77,000 increase in advertising, would cause annual sales in units to increase by one third.

(a)

Prepare two contribution format income statements, one showing the results of last year’s operations and one showing the results of operations if these changes are made. (Round your per unit values to 2 decimal places and other answers to the nearest dollar amount. Omit the “$” sign in your response.)

	Last Year: 31,000 units		Proposed: 41,333 units
	Amount	Per Unit	Amount	Per Unit
Sales	$	$	$	$
Variable expenses
Contribution margin		$		$
Fixed expenses
Net operating income	$		$

managerial accounting 447427

Aug 29, 2021 | Uncategorized

Renfree Mines, Inc., owns the mining rights to a large tract of land in a mountainous area. The tract contains a mineral deposit that the company believes might be commercially attractive to mine and sell. An engineering and cost analysis has been made, and it is expected that the following cash flows would be associated with opening and operating a mine in the area:


Cost of equipment required	$	970,000
Annual net cash receipts	$	355,000*
Working capital required	$	250,000
Cost of road repairs in eleven years	$	71,000
Salvage value of equipment in twelve years	$	120,000

*Receipts from sales of ore, less out of pocket costs for salaries, utilities, by Coupon Companion Plugin” id=”_GPLITA_0″ href=”http://ezto.mhecloud.mcgraw hill.com/#” class=”c11″ name=”_GPLITA_0″>insurance, and so forth.

by Coupon Companion Plugin” id=”_GPLITA_0″ href=”http://ezto.mhecloud.mcgraw hill.com/#” class=”c11″ name=”_GPLITA_0″>

The mineral deposit would be exhausted after twelve years of mining. At that point, the working capital would be released for reinvestment elsewhere. The company%u2019s required rate of return is 21%. (Ignore income by Coupon Companion Plugin” id=”_GPLITA_1″ href=”http://ezto.mhecloud.mcgraw hill.com/#” class=”c11″ name=”_GPLITA_1″>taxes.)

by Coupon Companion Plugin” id=”_GPLITA_1″ href=”http://ezto.mhecloud.mcgraw hill.com/#” class=”c11″ name=”_GPLITA_1″>

Click here to view Exhibit 11B 1 andExhibit 11B 2, to determine the appropriate discount factor(s) using tables.

Required:
a.	Determine the net present value of the proposed mining project. (Negative amount should be indicated by a minus sign. Round discount factor(s) to 3 decimal places, other intermediate calculations and final answer to the nearest whole dollar.)

Net present value

$

renfro manufacturing plantwide overhead rate 447428

Aug 29, 2021 | Uncategorized

Renfro Manufacturing identified the following data in its two production departments.

Manufacturing overhead costs:

assembly = $600,000

finishing = $1,200,000

Direct labor hours worked:

assembly = 12,000 DLH

finishing = 20,000 DLH

Machine hours used:

assembly = 6,000 MH

finishing = 16,000 MH

1.What is the company’s single plantwide overhead rate based on direct labor hours (DLH)? (Round your answer to 2 decimal places. Omit the “$” sign in your response.)

2.What is the company’s single plantwide overhead rate based on machine hours (MH)? (Round your answer to 2 decimal places. Omit the “$” sign in your response.)

17 5a 447435

Aug 29, 2021 | Uncategorized

Required

1. For both companies compute the (a) current ratio, (b) acid test ratio, (c) accounts (including notes) receivable turnover, (d) inventory turnover, (e) days’ sales in inventory, and (f) days’ sales uncollected. Identify the company you consider to be better short term credit risk and explain why.

2. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on common stockholders’ equity. Assuming that each company paid cash dividend of $1.50 per share and each company’s stock can be purchased at $25 per share, compute their (e) price earnings ratios and (f) dividend yields. Identify which company’s stock you would recommend as the better investment and excplain why.

accounting 447441

Aug 29, 2021 | Uncategorized

A response with a short explanation is required to recieve the points. These questions are multiple choice, I will leave this up here for awhile

1.) In comparing the canceled checks on the bank statement with the entries in the accounting records, it is found that check number 2889 for December’s utilities was correctly written and drawn for $595, but was erroneously entered in the accounting records as $955. The journal entry to adjust the books for the bank reconciliation would include which of the following for this situation?

$955 increase to Cash

$50 increase to Cash and a $150 decrease to Utility Expense

$ 360 increase to Cash and a $ 360 decrease to Utility Expense

$ 360 decrease to Cash and a $ 360 decrease to Utility Expense

$50 decrease to Cash and a $50 decrease to Utility Expense

2.)
A company plans to decrease a $185 petty cash fund to $60. The current balance in the account includes $45 in receipts and $160 in currency. The entry to reduce the fund will include a:

	Credit to Petty Cash for $160
	Debit to Miscellaneous Expenses for $140
	Debit to Cash Short and Over for $15
	Debit to Cash for $100
	Credit to Cash for $100

3.) At the end of the day, the cash register’s record shows $1,350, but the count of cash in the cash register is $1,130. The correct entry to record the cash sales for the day is:

Cash	220
Sales		220

Cash	1,350
Sales		1,350

Cash	1,130
Cash over and short	220
Sales		1,350

Cash	1,130
Sales		1,130

Cash	1,350
Sales		1,130
Cash over and short		220

4.) In comparing the canceled checks on the bank statement with the entries in the accounting records, it is found that check number 4234 for April’s rent was correctly written and drawn for $3,505 but was erroneously entered in the accounting records as $7,300. When preparing the April bank statement, the company should:

	Add $3,795 to the book balance of cash
	Deduct $3,795 from the book balance of cash
	Add $7,300 to the book balance of cash
	Add $3,895 to the bank statement balance
	Deduct $3,795 from the bank statement balance

5.)
Triple Company’s accountant made an entry that included the following items: debit postage expense $12.47; debit office supplies expense $27.38, credit to cash over/short $2.24. If the original amount in petty cash is $320, how much was the credit to cash for the reimbursement?

	$39.85
	$42.09
	$282.39
	$37.61
	$320.00

reveen products acounting 447448

Aug 29, 2021 | Uncategorized

Reveen Products sells camping equipment. One of the company%u2019s products, a camp lantern, sells for $140 per unit. Variable expenses are $98 per lantern, and fixed expenses associated with the lantern total $189,000 per month.

1.	Compute the company%u2019s break even point in number of lanterns and in total sales dollars.

Number of lanterns
Total sales dollars	$

2.

If the variable expenses per lantern increase as a percentage of the selling price, will it result in a higher or a lower break even point? (Assume that the fixed expenses remain unchanged.)

	Higher break even point
	Lower break even point

3.

At present, the company is selling 18,000 lanterns per month. The sales manager is convinced that a 10% reduction in the selling price will result in a 25% increase in the number of lanterns sold each month. Prepare two contribution format income statements, one under present operating conditions, and one as operations would appear after the proposed changes. (Input all amounts as positive values except losses which should be indicated by a minus sign.)

	Present 18,000 lanterns		Proposed lanterns
	Total	Per Unit	Total	Per Unit
(Click to select) Net operating income (loss) Fixed expenses Sales Contribution margin Variable expenses	$	$	$	$
(Click to select) Sales Net operating income (loss) Fixed expenses Variable expenses Contribution margin

(Click to select) Net operating income (loss) Contribution margin Fixed expenses Sales Variable expenses		$		$
(Click to select) Net operating income (loss) Contribution margin Sales Variable expenses Fixed expenses

(Click to select) Fixed expenses Contribution margin Sales Net operating income (loss) Variable expenses	$		$

4.	Refer to the data in (3) above. How many lanterns would have to be sold at the new selling price to yield a minimum net operating income of $71,000 per month? (Round your answer to the nearest whole number.)

Number of lanterns to be sold

accounting 447451

Aug 29, 2021 | Uncategorized

Ringo Company had $910,000 of sales in each of three consecutive years 2010%u20132012, and it purchased merchandise costing $505,000 in each of those years. It also maintained a $210,000 physical inventory from the beginning to the end of that three year period. In accounting for inventory, it made an error at the end of year 2010 that caused its year end 2010 inventory to appear on its statements as $190,000 rather than the correct $210,000.

references

6. value:

2.00 points

Exercise 5 8 Part 1

1.	Determine the correct amount of the company’s gross profit in each of the years 2010 %u2013 2012. (Omit the “$” sign in your response.)

	2010	2011	2012
Gross profit	$	$	$

check my workView Hint #1referencesebook & resources

7. value:

2.00 points

Exercise 5 8 Part 2

2.	Prepare comparative income statements to show the effect of this error on the company’s cost of goods sold and gross profit for each of the years 2010%u22122012. (Input all amounts as positive values. Omit the “$” sign in your response.)

RINGO COMPANY Comparative Income Statements
	Year 2010		Year 2011		Year 2012
(Click to select) Beginning inventory Sales Ending inventory Goods available for sale Cost of purchases		$		$		$
Cost of goods sold
(Click to select) Accounts payable Ending inventory Beginning inventory Good available for sale Sales	$		$		$
(Click to select) Sales Ending inventory Cost of purchases Accounts payable Good available for sale

(Click to select) Beginning inventory Good available for sale Ending inventory Sales Cost of purchases
(Click to select) Beginning inventory Good available for sale Cost of purchases Ending inventory Sales

Cost of goods sold

Gross profit		$		$		$

check my workView Hint #1referencesebook & resources

managerial accounting 447461

Aug 29, 2021 | Uncategorized

Roger Industries is considering two capital investment proposals. Estimates regarding each project are provided below:

	Project XR8	Project AAA
Initial investment	$800,000	$1,200,000
Annual net income	40,000	84,000
Net annual cash inflow	200,000	284,000
Estimated useful life	5 years	6 years
Salvage value	0	0

The company requires a 10% rate of return on all new investments.

Present Value of an Annuity of 1

Periods	9%	10%	11%	12%
5	3.890	3.791	3.696	3.605
6	4.486	4.355	4.231	4.111

The cash payback period for Project XR8 is

10 years.

4 years.

5 years.

20 years.

measures of liquidity 447465

Aug 29, 2021 | Uncategorized

Roy’s Toys is a manufacturer of toys and children’s products. The following are selected items appearing in a recent balance sheet (dollar amounts are in millions):


Cash and short term investments	$	48.00
Receivables		153.00
Inventories		72.00
Prepaid expenses and other current assets		39.00
Total current liabilities		134.00
Total liabilities		201.00
Total stockholders’ equity		348

a(1)

Using the information above, compute the amounts of Roy’s Toys quick assets. (Enter your answer in millions of dollars rounded to 1 decimal place. Omit the “$” sign in your response.)

Quick assets

$

a(2)

Using the information above, compute the amounts of Roy’s Toys total current assets. (Enter your answer in millions of dollars rounded to 1 decimal place. Omit the “$” sign in your response.)

Total current assets

$

b(1)

Compute for Roy’s Toys quick ratio. (Round your answer to 1 decimal place.)

Quick ratio

b(2)

Compute for Roy’s Toys current ratio.(Round your answer to 1 decimal place.)

Current ratio

b(3)

Compute for Roy’s Toys dollar amount of working capital. (Enter your answer in millions of dollars rounded to 1 decimal place. Omit the “$” sign in your response.)

Working capital

$

need help acct 212 447466

Aug 29, 2021 | Uncategorized

Royal Company manufactures 20,000 units of part R 3 each year for use on its production line. At this level of activity, the cost per unit for part R 3 is:


Direct materials	$	4.80
Direct labor		7.00
Variable manufacturing overhead		3.20
Fixed manufacturing overhead		10.00

Total cost per part	$	25.00

An outside supplier has offered to sell 20,000 units of part R 3 each year to Royal Company for $23.50 per part. If Royal Company accepts this offer, the facilities now being used to manufacture part R 3 could be rented to another company at an annual rental of $150,000. However, Royal Company has determined that $6 of the fixed manufacturing overhead being applied to part R 3 would continue even if part R 3 were purchased from the outside supplier.

Required:

a.	What is the total relevant cost of making the product? (Omit the “$” sign in your response.)

Total relevant cost of making the product (20,000 units)

$

b.	What is the total relevant cost of buying the product? (Omit the “$” sign in your response.)

Total relevant cost of buying the product (20,000 units)

$

c.	What is the opportunity cost of making instead of buying? (Omit the “$” sign in your response.)

Total opportunity cost

$

d.	How much profits will increase or decrease if the outside supplier%u2019s offer is accepted? (Input the amount as a positive value. Omit the “$” sign in your response.)

Profits would by

$

accounting help 2 447476

Aug 29, 2021 | Uncategorized

Sales on account for the first two months of the current year are budgeted as follows:


Jan.	$	706,000
Feb.		784,000

All sales are made on terms of 2/10, n/30 (2% discount if paid in 10 days, full amount by 30 days); collections on accounts receivable are typically made as follows:


Collections within the month of sale:
Within discount period	60	%
After discount period	15
Collections within the month following sale:
Within discount period	15
After discount period	7
Returns, allowances, and uncollectibles	3

Total	100	%

Compute the estimated cash collections on accounts receivable for the month of February. (Omit the “$” sign in your response.)

Estimated cash collections

$

problem 8 2 allocation of profits and determination of withdrawals 447486

Aug 29, 2021 | Uncategorized

Sandburg and Williams are the ownders of a partnership that manufactures commercial lighting fixtures. Profits are allocated among the partners as follows:

Sandburg Williams

Salaries $100,000 $125,000

Bonus as a percentage of net income after the bonus 10% 0%

Interest on weighted average capital including withdrawals and

excluding current year profits 5% 5%

Sandburg was divorced as of the beginning of 20X5 and as part of the divorce stipulation agreed to the following:

1. The spouse is to receive annual distributions traceable to years 20X5 and 20X6. The annual distribution is to be the greater of $100,000 or 25% of base earnings.

2. Base earnings are defined as net income of the partnership less: (1) salaries traceable to Sandburg and Williams of $75,000 and $125,000, respectively, and (b) bonus to Sandburg as stated subject to the limitation that it not exceed $50,000.

3. Sandburg’s spouse would receive a distribution from the partnership on August 31 of each current year and on February 28 of each subsequent year. The August 31 target distribution is $50,000. If the August distribution is less than $50,000, Sandburg’s spouse will receive one half year’s interest on the deficiency at the rate of 10% per year. The following distribution on February 28 must be of an amount such that the two distributions equal the required distribution traceable to the calendar year just ended plus any interest associated with the August distribution.

4. All distributions to Sandburg’s spouse are to be considered as a withdrawal of capital by Sandburg.

5. Aside from distributions to Sandburg’s spouse, Sandburg’s annual withdrawaals cannot exceed $125,000.

6. Upon sale or dissolution of the partnership prior on February 28, 20X6, Sandburg’s spouse would receive 50% of the net realizable value of Sandburg’s partnership capital.

7. On February 28,20×7, Sandburg’s spouse will receive an additional final distribution equal to 50% of the sum of Sandburg’s capital balance as of December 31, 20X6, less the amount of the February 20X7 distribution as called for by item (3) above.

Capital balances at the beginning of 20X5 were $180,000 and $125,000, respectively, for Sandburg and Williams. Activity related to the partnership during 20X5 and 20X6 is as follows:

20X5 20X6

Partnership net income $750,000 $700,000

Distribution to Sandburg’s spouse

February 28 0 to be determined

August 31 40,000 50,000

Distribution to Sandburg:

June 30 60,000 125,000

September 30 65,000 0

Distribution to Williams

June 30 30,000 300,000

September 30 90,000 20,000

Prepare a schedule to determine the total amount of the distribution due Sandburg’s spouse as of February 28, 20X7. Note that the solution requires one to determine the amount of the February 20X6 distribution to Sandburg’s wife.

accounting 447488

Aug 29, 2021 | Uncategorized

Sandi Scott obtained a patent on a small electronic device and organized Scott Products, Inc., to produce and sell the device. During the first month of operations, the device was very well received on the market, so Ms. Scott looked forward to a healthy profit. For this reason, she was surprised to see a loss for the month on her income statement. This statement was prepared by her accounting service, which takes great pride in providing its clients with timely financial data. The statement follows:

Scott Products, Inc. Income Statement
Sales (21,000 units)			$	762,300
Variable expenses:
Variable cost of goods sold	$	245,700
Variable selling and administrative expenses		164,850		410,550

Contribution margin				351,750
Fixed expenses:
Fixed manufacturing overhead		201,600
Fixed selling and administrative expenses		216,000		417,600

Net operating loss			$	( 65,850)

Ms. Scott is discouraged over the loss shown for the month, particularly because she had planned to use the statement to encourage investors to purchase stock in the new company. A friend, who is a CPA, insists that the company should be using absorption costing rather than variable costing. He argues that if absorption costing had been used, the company would probably have reported a profit for the month.

Selected cost data relating to the product and to the first month of operations follow:


Units produced		24,000
Units sold		21,000
Variable costs per unit:
Direct materials	$	7.30
Direct labor	$	2.90
Variable manufacturing overhead	$	1.50
Variable selling and administrative expenses	$	7.85

Required:

1.	Complete the following:

a.	Compute the unit product cost under absorption costing. (Round your intermediate and final answers to 2 decimal places.)

Unit product cost

$

b.	Redo the company%u2019s income statement for the month using absorption costing. (Input all amounts as positive values except losses which should be indicated by a minus sign. Round your intermediate calculations to 2 decimal places. Round your final answers to the nearest whole number.)

Absorption Costing Income Statement
(Click to select) Selling and administrative expenses Sales Net operating income (loss) Gross margin Cost of goods sold	$
(Click to select) Net operating income (loss) Cost of goods sold Sales Gross margin Selling and administrative expenses

(Click to select) Gross margin Contribution margin
(Click to select) Cost of goods sold Selling and administrative expenses Sales Gross margin Net operating income (loss)

(Click to select) Net operating income Net operating loss	$

c.	Reconcile the variable and absorption costing net operating income (loss) figures. (Loss amounts and amounts to be deducted should be indicated with a minus sign. Round your intermediate calculations to 2 decimal places. Round your final answers to the nearest whole number.)

Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes
Variable costing net operating income (loss)	$
(Click to select) Add Deduct : (Click to select) Fixed manufacturing overhead cost deferred in inventory Fixed manufacturing overhead cost released from inventory

Absorption costing net operating income (loss)	$

3.	During the second month of operations, the company again produced 24,000 units but sold 27,000 units. (Assume no change in total fixed costs.)

a.	Prepare a contribution format income statement for the month using variable costing. (Input all amounts as positive values except losses which should be indicated by a minus sign. Round your intermediate calculations to 2 decimal places. Round your final answers to the nearest whole number.)

Variable Costing Income Statement
(Click to select) Net operating income (loss) Fixed selling and administrative expense Variable selling and administrative expense Variable cost of goods sold Sales Contribution margin Fixed manufacturing overhead		$
Variable expenses:
(Click to select) Net operating income (loss) Sales Fixed selling and administrative expense Variable selling and administrative expense Fixed manufacturing overhead Contribution margin Variable cost of goods sold	$
(Click to select) Contribution margin Net operating income (loss) Fixed manufacturing overhead Variable cost of goods sold Fixed selling and administrative expense Variable selling and administrative expense Sales

(Click to select) Gross margin Contribution margin
Fixed expenses:
(Click to select) Sales Fixed manufacturing overhead Variable selling and administrative expense Net operating income (loss) Contribution margin Variable cost of goods sold Fixed selling and administrative expense
(Click to select) Fixed selling and administrative expense Net operating income (loss) Variable selling and administrative expense Contribution margin Fixed manufacturing overhead Sales Variable cost of goods sold

(Click to select) Net operating loss Net operating income		$

b.	Prepare an income statement for the month using absorption costing. (Input all amounts as positive values except losses which should be indicated by a minus sign. Round your intermediate calculations to 2 decimal places. Round your final answers to the nearest whole number.)

Absorption Costing Income Statement
(Click to select) Net operating income (loss) Gross margin Selling and administrative expenses Sales Cost of goods sold	$
(Click to select) Cost of goods sold Sales Selling and administrative expenses Net operating income (loss) Gross margin

(Click to select) Contribution margin Gross margin
(Click to select) Cost of goods sold Net operating income (loss) Gross margin Selling and administrative expenses Sales

(Click to select) Net operating loss Net operating income	$

c.	Reconcile the variable costing and absorption costing net operating incomes. (Loss amounts and amounts to be deducted should be indicated with a minus sign. Round your intermediate calculations to 2 decimal places. Round your final answers to the nearest whole number.)

Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes
Variable costing net operating income (loss)	$
(Click to select) Deduct Add : (Click to select) Fixed manufacturing overhead cost released from inventory Fixed manufacturing overhead cost deferred in inventory

Absorption costing net operating income (loss)	$

serial problem 447490

Aug 29, 2021 | Uncategorized

Santana Rey created Business Solutions on October 1, 2011. The company has been successful, and Santana plans to expand her business. She believes that an additional $86,000 is needed and is investigating three funding sources.

A. Santana%u2019s sister Cicely is willing to invest $86,000 in the business as a common shareholder. Since Santana currently has about $129,000 invested in the business, Cicely%u2019s investment will mean that Santana will maintain about 60% ownership, and Cicely will have 40% ownership of Business Solutions.

B. Santana%u2019s uncle Marcello is willing to invest $86,000 in the business as a preferred shareholder. Marcello would purchase 860 shares of $100 par value, 7% preferred stock.

C. Santana%u2019s banker is willing to lend her $86,000 on a 7%, 10 year note payable. She would make monthly payments of $1,000 per month for 10 years.

Required

1. Prepare the journal entry to reflect the initial $86,000 investment under each of the options (a), (b), and (c).

2. Evaluate the three proposals for expansion, providing the pros and cons of each option.

3. Which option do you recommend Santana adopt? Explain.

cost accounting 447495

Aug 29, 2021 | Uncategorized

savannah textiles inc manufactured 500 units of a special multilayer fabric with the trade name stylex during july the standard prome costs for one unit of stylex are

direct material 20 yard at $ 1.35 per yard 27

direct labor 4 hours at $9.00 per hour 36

total standard prime cost $ 63

the following information from the stylex production department pertains to july

direct materials purchased 18,000 yards at $ 1.38 per yard $24,840

direct material used 9,500 yards at $1.38 yard $13,110

direct labor used 2,100 hours at $ 9.15 per hour 19,215

plesae answer all but please part B is more important than A

A direct material price varience, and quantuty variance, direct labor rate variance and efficiency variance inventory

B prepare journal entiry

record the purchase of direct material

add direct material and direct labor cost to work in process

record the direct material and direct labor variance

close these variance to cost of goods sold

tax research memo 447498

Aug 29, 2021 | Uncategorized

SCENARIO: Altidore Inc. operates a calendar year end business that suffers from dramatic seasonal variation in taxable income. For example, it often operates at a net loss for the first two quarters of the year and then operates profitably for the last two quarters and, for as long as anyone can remember, finishes the year with taxable income. The new tax director has been asked to help calculate the deferred tax assets at the end of the first quarter. After looking at the quarterly loss, he claims that since there is no net income, there are no deferred tax assets because the effective tax rate is zero. (Carrybacks and carryforwards are not allowed in this jurisdiction.) Is the tax director correct in his assessment of the effective tax rate for calculating the deferred tax assets?

Prepare (in good form) a research memorandum to the file to include Revelant Facts, Specific Issues, Conclusions, and Support sections.

accounting 447499

Aug 29, 2021 | Uncategorized

Scenario Clara comes to an attorney%u2019s office in need of assistance with her husband%u2019s estate. Her husband, Phil, a factory worker, had been a saver all his life and owned approximately $1,500,000 in stocks and bonds. Clara is relatively unsophisticated in financial matters, so the attorney agrees to handle the estate for 17 percent of the value of the estate. The normal charge for such work is 3 to 5 percent of the estate. The widow agrees to the 17 percent arrangement. The attorney then hires CPA Charles for $10,000 to compute Phil%u2019s estate tax on Form 706 and to prepare other appropriate documents.

1. Under Circular 230, does Charles have any responsibility to inform the widow that she is being significantly overcharged by the attorney? Be sure to cite research that supports your position.
2. What potential ethics issues do you see in this situation?
3. Which AICPA Code(s) of Professional Conduct rules apply in this situation (explain how and why they apply)?
4. Cite the specific verse(s) for at least one Biblical principle that you feel is relevant to the situation (explain how and why it applies).

accounting ch 20 process cost systems 447294

Aug 29, 2021 | Uncategorized

Problem 20 2 (Algorithmic)
Cost of Production Report

Venus Chocolate Company processes chocolate into candy bars. The process begins by placing direct materials (raw chocolate, milk, and sugar) into the Blending Department. All materials are placed into production at the beginning of the blending process. After blending, the milk chocolate is then transferred to the Molding Department, where the milk chocolate is formed into candy bars. The following is a partial work in process account of the Blending Department at March 31, 2012:

ACCOUNT Work in Process%u2014Blending Department

ACCOUNT NO.

Date

Item

Debit

Credit

Balance

Debit

Credit

Mar.

1

Bal., 6,600 units, 1/5 completed

14,916

31

Direct materials, 264,000 units

580,800

595,716

31

Direct labor

127,600

723,316

31

Factory overhead

31,952

755,268

31

Goods transferred, 265,000 units

?

31

Bal., ? units, 2/5 completed

?

1. Prepare a cost of production report, and identify the missing amounts for Work in Process%u2014Blending Department. If an amount is zero, enter in a zero (0). When computing cost per equivalent units, round to two decimal places.

2. Assuming that the March 1 work in process inventory includes $13,860 of direct materials, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between February and March. If required, round your answers to the nearest cent.

	Increase or Decrease	Amount
Change in direct materials cost per equivalent unit:	Increase	$ 0
Change in conversion cost per equivalent unit:	Decrease	$ blank

flexible budgeting and variance analysis need help please 447295

Aug 29, 2021 | Uncategorized

Problem 23 2B
Flexible Budgeting and Variance Analysis

Yukon Coat Company makes women’s and men’s coats. Both products require filler and lining material. The following planning information has been made available:

The expected beginning inventory and desired ending inventory were realized.

Required:

1. Prepare the following variance analyses for each coat and total, based on the actual results and production levels at the end of the budget year:

Direct materials price variance, direct materials quantity variance, and total variance.
Direct labor rate variance,direct labor time variance, and total variance.

Use the minus sign to enter favorable variances as negative numbers.

a.	Direct materials price variance:	$	Select Favorable Unfavorable Item 2
	Direct materials quantity variance:	$	Select Favorable Unfavorable Item 4
	Total direct materials cost variance:	$	Select Favorable Unfavorable Item 6

b.	Direct labor rate variance:	$	Select Favorable Unfavorable Item 8
	Direct labor time variance:	$	Select Favorable Unfavorable Item 10
	Total direct labor cost variance:	$	Select Favorable Unfavorable Item 12

2. Why are the standard amounts in part (1) based on the actual production at the end of the year instead of the planned production at the beginning of the year?

The input in the box below will not be graded, but may be reviewed and considered by your instructor.

comprehensive problem one department lo 3 4 447297

Aug 29, 2021 | Uncategorized

PROBLEM 3 2. Comprehensive Problem, One Department [LO 3, 4] Marquita Filters produces an air filter for use in jet aircraft. Parts are added at several points in the production process. In August, production began with 500 filters in Work in Process, 80 percent complete as to materials and 70 percent complete as to labor and overhead. During the month, an additional 2,700 units were started into production. Six hundred filters were in Work in Process at the end of the month, and they were 70 percent complete as to materials and 60 percent complete as to labor and overhead.

Cost of information for August	Beginning WIP (Inventory)	Cost Added in August
Direct Material	$ 45,000	$ 269,080
Direct Labor	$ 11,000	$ 77,800
Manufacturing Overhead	$ 80,000	$ 497,200
Total	$ 136,000	$ 844,080

Required
a. Calculate the cost per equivalent unit for each of the three cost items and in total.
b. Calculate the cost of items completed in August and the cost of ending Work in Process inventory.
c. Reconcile the sum of the two costs in part b to the sum of beginning Work in Process and costs added in August.

help 447299

Aug 29, 2021 | Uncategorized

Problem 3 7A Applying the accounting cycle L.O. P1, P2, P3, P4, P5

[The following information applies to the questions displayed below.]

On April 1, 2011, Jennifer Stafford created a new travel agency, See It Now Travel. The following transactions occurred during the company%u2019s first month.

April 1	Stafford invested $49,000 cash and computer equipment worth $20,000 in the company in exchange for common stock.
2	The company rented furnished office space by paying $1,900 cash for the first month%u2019s (April) rent.
3	The company purchased $1,100 of office supplies for cash.
10	The company paid $2,800 cash for the premium on a 12 month insurance policy. Coverage begins on April 11.
14	The company paid $900 cash for two weeks’ salaries earned by employees.
24	The company collected $9,500 cash on commissions from airlines on tickets obtained for customers.
28	The company paid $900 cash for two weeks’ salaries earned by employees.
29	The company paid $250 cash for minor repairs to the company’s computer.
30	The company paid $1,300 cash for this month’s telephone bill.
30	The company paid $2,100 cash for dividends.

holvey company makes three products in a single facility data concerning these produ 447305

Aug 29, 2021 | Uncategorized

	Product
	A		B		C
Selling price per unit	$	78.00	$	100.40	$	93.90
Direct materials	$	34.80	$	51.30	$	57.70
Direct labor	$	22.20	$	24.80	$	15.60
Variable manufacturing overhead	$	2.00	$	1.40	$	1.30
Variable selling cost per unit	$	2.60	$	3.10	$	2.90
Mixing minutes per unit		1.20		1.00		0.30
Monthly demand in units		2,800		4,100		2,100

The mixing machines are potentially the constraint in the production facility. A total of 7,990 minutes are available per month on these machines. Direct labor is a variable cost in this company.

Required:
a.	How many minutes of mixing machine time would be required to satisfy demand for all three products?

Total minutes required

b.	How much of each product should be produced to maximize net operating income? (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.)

	A	B	C
Optimal production

c.	Up to how much should the company be willing to pay for one additional hour of mixing machine time if the company has made the best use of the existing mixing machine capacity? (Round your answer to 2 decimal places. Omit the “$” sign in your response.)

Maximum amount

$

Please show the working or no rating.

accounting question please help i m stuck 447322

Aug 29, 2021 | Uncategorized

Profit Center Responsibility Reporting

Johnson Products Inc. has three regional divisions organized as profit centers. The chief executive officer (CEO) evaluates divisional performance, using income from operations as a percent of revenues. The following quarterly income and expense accounts were provided from the trial balance as of December 31, 2012:

Revenues East	$ 1,066,100
Revenues West	1,298,500
Revenues Central	2,187,200
Operating Expenses East	675,600
Operating Expenses West	772,800
Operating Expenses Central	1,322,700
Corporate Expenses Shareholder Relations	162,100
Corporate Expenses Customer Support	457,500
Corporate Expenses Legal	326,400
General Corporate Officer’s Salaries	358,100

The company operates three service departments: Shareholder Relations, Customer Support, and Legal. The Shareholder Relations Department conducts a variety of services for shareholders of the company. The Customer Support Department is the company’s point of contact for new service, complaints, and requests for repair. The department believes that the number of customer contacts is an activity base for this work. The Legal Department provides legal services for division management. The department believes that the number of hours billed is an activity base for this work. The following additional information has been gathered:

	East	West	Central
Number of customer contacts	4,600	5,500	8,200
Number of hours billed	1,300	2,000	1,800

Required:

a. Prepare quarterly income statements showing income from operations for the three divisions. Use three column headings: East, West, and Central.

b. What is theprofit margin percentage of each division? Round to one decimal place.

Division	Profit Margin
East Division	%
West Division	%
Central Division	%

Identify the most successful division according to the profit margin percentage.

Select East West Central Correct 4 of Item 2

Thanks!

accounting 447329

Aug 29, 2021 | Uncategorized

The projections of direct materials purchases that follow are for the Sombo Corporation.

	Purchases on Account	Cash Purchases
December	$40,000	$30,000
January	60,000	33,000
February	50,000	35,000
March	70,000	25,000

The company pays for 60 percent of purchases on account in the month of purchase and 40 percent in the month following the purchase. What is the expected cash payment for direct materials for the month of January? Answer

	a.	$102,000
	b.	$85,000
	c.	$33,000
	d.	$108,000

puget world inc manufactures two models of television sets the n 800 xl model and th 447333

Aug 29, 2021 | Uncategorized

Puget World, Inc., manufactures two models of television sets, the N 800 XL model and the N 500 model. Data regarding the two products follow:

	Direct Labor Hours per Unit	Annual Production	Total Direct Labor Hours
Model N 800 XL	1.8	5,000 units	9,000
Model N 500	0.9	29,500 units	26,550

			35,550

Additional information about the company follows:

a.	Model N 800 XL requires $73 in direct materials per unit, and Model N 500 requires $48.
b.	The direct labor wage rate is $11 per hour.
c.	The company has always used direct labor hours as the base for applying manufacturing overhead cost to products.
d.	Model N 800 XL is more complex to manufacture than Model N 500 and requires the use of special equipment. Consequently, the company is considering the use of activity based costing to assign manufacturing overhead cost to products. Three activity cost pools have been identified as follows:

Activity Cost Pool	Activity Measure	Estimated Overhead Cost
Machine setups	Number of setups	$	355,000
Special processing	Machine hours		173,000
General factory	Direct labor hours		1,266,000

		$	1,794,000

	Expected Activity
Activity Measure	Model N 800 XL	Model N 500	Total
Number of setups	50	100	150
Machine hours	12,000	0	12,000
Direct labor hours	9,000	26,550	35,550

2 16 2011

1. value:

7.00 points

Required:
1.	Assume that the company continues to use direct labor hours as the base for applying overhead cost to products.(Do not round intermediate calculations.Round your answers to 2 decimal places.)

a.	Compute the predetermined overhead rate.

Predetermined overhead rate

$ per DLH

b.	Compute the unit product cost of each model.


Model N 800 XL	$
Model N 500	$

referencesebook & resources

2. value:

8.00 points

2.	Assume that the company decides to use activity based costing to assign manufacturing overhead cost to products.

a(1)

Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.)


Machine setup	$	per setup
Special processing	$	per MH
General factory	$	per DLH

a(2)

Determine the amount of overhead cost that would be assigned to each model using the activity based costing system. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

	Model N 800 XL	Model N 500
Overhead cost per unit	$	$

b.	Compute the unit product cost of each model. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

	Model N 800 XL	Model N 500
Unit product cost	$	$

frank white will retire in six years he wants to open some type of small business op 447364

Aug 29, 2021 | Uncategorized

Frank White will retire in six years. He wants to open some type of small business operation that can be managed in the free time he has available from his regular occupation, but that can be closed easily when he retires. He is considering several investment alternatives, one of which is to open a laundromat. After careful study, Mr. White has determined the following:

a.	Washers, dryers, and other equipment needed to open the laundromat would cost $183,000. In addition, $1,000 in working capital would be required to purchase an inventory of soap, bleaches, and related items and to provide change for change machines. (The soap, bleaches, and related items would be sold to customers at cost.) After six years, the working capital would be released for investment elsewhere.
b.	The laundromat would charge $1.35 per use for the washers and $0.60 per use for the dryers. Mr. White expects the laundromat to gross $2,565 each week from the washers and $1,320 each week from the dryers.
c.	The only variable costs in the laundromat would be 7A??1 cents per use for water and electricity for the washers and 9 cents per use for gas and electricity for the dryers.
d.	Fixed costs would be $4,000 per month for rent, $2,500 per month for cleaning, and $1,975 per month for maintenance, insurance, and other items.
e.	The equipment would have a 9% disposal value in six years.

Mr. White will not open the laundromat unless it provides at least a 10% return. (Ignore income taxes.)
1.Assuming that the laundromat would be open 52 weeks a year, compute the expected annual net cash receipts from its operation (gross cash receipts less cash disbursements). (Do not include the cost of the equipment, the working capital, or the salvage values in these computations.)

acc 460 447373

Aug 29, 2021 | Uncategorized

First Question

Nick and Jolene are married. Nick is 61 and retired in 2011 from his job with Amalgamated Company. Jolene is 56 and work part time as a special education teacher. Nick and Jolene have a substantial amount of investment savings and would like to reorganize it to achieve the best after tax return on their investments. They give the following list of projected cash receipts for 2012:

Jolene’s Salary $13,000 Nick’s pension fully taxable 12,500. Interest income 4,000. Dividend income 2,500. Social Security benefits 7,000.=== Farmer’s Funds annutiy 6,000. In addition, Nick tells you that he owns a duplex that he rents out. The duplex rents for 2012 are $18,000.,and Nick estimates expenses of $22,000. related to the duplex. The annuity was purchased 18 years ago for $20,000. and pays $500 per month for 10 years. Nick and Jolene’s investments consist of the following:

6 month certificates of deposit (CDs) $100,000.

1,000 shares of Lardee’s common stock (current market value = $7 per share, projected 2012 dividend = $7 per share) cost $10,000

2,000 shares of Corb Company common stock(current market value =$20 per share , projected 2012 dividend = $.75 per share ) cost $20,000

A. Assuming that Nick and Jolene have total allowable itemized deductions of $12,350 in 2012 and that they have no dependents, determine their 2012 taxable income and tax liability based on the projections they gave you .

B. The 6 moth CDs consist of two $50,000 certificates, both of which ield 4% interst. One CD matures on Janiary 3, 2012 Nick’s banker tell he can renew the CD for one year at 4%. Nicks stockbroker tells him that he can purchase tax exempt bonds provide him a better after tax return than the CD.

C. Jolene is concerned that they are not getting the best return on their Corb Company Stock. When they purchased the stock in 2001, the $.75 per share dividend was yielding 10% befoe taxes. However, the rise in market value has far outpaced the dividend growth, and it is yielding only 3.75% based on the curent market value. Jolene thinks they should sell the stock and purchase either the 3% tax exempt securities or the 4% CD if it would be a better deal from an income tax viewpoint. Calculate the tax effect on their 2012 income of selling the shares, and determine whether they should sell the shares and invest the after tax proceeds in tax exempt securities or the 4%m CD. So this calculation agter you have determine the best option regarding the CD that matures in January

Second Question

During the current year, the Harlow Corporation, which specializes in commercial construction, has the following property trasaction:

A. In April a tornado damages a crane and a dump truck at one of its construction sites. The crane was acquired in 2009 for $120,000 and has an adjusted basis of $39,650. The dump truck was acuired in 2007 for $70,000 and has an adjusted basis of $33,880. The insurance company reimburses Harlow $35,000. for the crane and $42,000. for the dump truck. The company decides not to replace the dump truck and uses the insurance proceeds to purchase a new crane for $110,000.

B. The company trades a road grader with a fair market value of $72,000. for a bulldozer worth $60,000. Harlow recives $12,000. in the exchange. The road grader originally cost $90,000. and has an adjusted basis of $50,000. The bulldozer cost $85,000., and its adjusted basis is $37,000.

C. A fire destroys the company’s supply warehouse. The warehouse originally cost $300,000. and has an adjusted basis of $200,000. Its fair market value before the fire was $250,000. The insurance company pays Harlow $230,000., which it uses to acquire a warhouse costing $280,000.

D. The city of PeaceDale condemns land that Harlow had acuired in 1978 for $22,000. and held as an investment. The city pays Harlow the $195,000. fair market value of the land. Harlow uses the proceeds to acquire a commercial office park for $350,000.

E. Harlow sells an automobile used by its president for business purposes for $10,000. to a local car dealership. The car originally cost $32,000. and its adjusted basis is $15,000. The company had an agreement to replace the automobile with a customized four wheel drive vehicle from a company that specializes in custome cars. However, the day the company sells theautomobile, it is informed that the custom car company will not be able to deliver the vehicle for a t 10 weeks. Harlow terminates its contract with the custome car company and buys a new automobile from the local car dealership for U,000.

Determine the realized and recognzed gain or loss on each of Harlow’s property transactions and the basis of any property acquired in each trasaction.

accounting 447400

Aug 29, 2021 | Uncategorized

have two questions

1)Assume a company sells a given product for 85 per unit how many units must be sold to break even if the variable selling cost are 27 per unit. variable production cost are 23 per unit, and total fixed costs are 700,000.

2)Aivars company reports the following variable cost income statement for its single product this company sales totaled 50,000 units but its productin was 80,00 units it had no begining finished goods inventoey for that period.

sales(50,000 units x60 per unit)3000000

variable expenses

variable manufacturing expense (50,000 units x28 per unit)1400000

varible selling and admin expenses(50,000 units x5 per unit)250,000

total variable expenses 1650000

contribution margin1,350000

fixed expenses

fixed over head 320000

fixed selling and admin expenses 160,000

total fixed expenses 480,000

net income 870,000

convert this companys variable costing income statement to an absorption costing income statement.

explain the difference in income between the variable costing and absorption costing statement

cost accounting will award full point 447239

Aug 29, 2021 | Uncategorized

Portland Company’s Ironton Plant produces precast ingots for industrial use. Carlos Santiago, who was recently appointed general manager of the Ironton Plant, has just been handed the plant%u2019s contribution format income statement for October. The statement is shown below:

	Budgeted		Actual
Sales (3,000 ingots)	$	175,000	$	175,000

Variable expenses:
Variable cost of goods sold*		24,300		58,310
Variable selling expenses		10,000		10,000

Total variable expenses		34,300		68,310

Contribution margin		140,700		106,690

Fixed expenses:
Manufacturing overhead		50,000		50,000
Selling and administrative		65,000		65,000

Total fixed expenses		115,000		115,000

Net operating income (loss)	$	25,700	$	(8,310)

*Contains direct materials, direct labor, and variable manufacturing overhead.

Mr. Santiago was shocked to see the loss for the month, particularly because sales were exactly as budgeted. He stated, “I sure hope the plant has a standard cost system in operation. If it doesn’t, I won’t have the slightest idea of where to start looking for the problem.”

The plant does use a standard cost system, with the following standard variable cost per ingot:

	Standard Quantity or Hours	Standard Price or Rate		Standard Cost
Direct materials	3.0 pounds	$	2.00 per pound	$	6.00
Direct labor	0.3 hours	$	6.00 per hour		1.80
Variable manufacturing overhead	0.2 hours*	$	1.50 per hour		0.30

Total standard variable cost				$	8.10

*Based on machine hours.

During October the plant produced 3,000 ingots and incurred the following costs:

a.	Purchased 23,000 pounds of materials at a cost of $3.20 per pound. There were no raw materials in inventory at the beginning of the month.
b.	Used 8,800 pounds of materials in production. (Finished goods and work in process inventories are insignificant and can be ignored.)
c.	Worked 2,000 direct labor hours at a cost of $5.70 per hour.
d.	Incurred a total variable manufacturing overhead cost of $1,710 for the month. A total of 900 machine hours was recorded.

It is the company%u2019s policy to close all variances to cost of goods sold on a monthly basis.

Required:

1.	Compute the following variances for October:

a.

Direct materials price and quantity variances. (Input all amounts as positive values. Leave no cells blank be certain to enter “0” wherever required. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Omit the “$” sign in your response.)


Materials price variance	$	(Click to select) None F U
Materials quantity variance	$	(Click to select) U None F

b.

Direct labor rate and efficiency variances. (Input all amounts as positive values. Leave no cells blank be certain to enter “0” wherever required. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Omit the “$” sign in your response.)


Labor rate variance	$	(Click to select) U F None
Labor efficiency variance	$	(Click to select) F None U

c.

Variable overhead rate and efficiency variances. (Input all amounts as positive values. Do not round your intermediate calculations. Leave no cells blank be certain to enter “0” wherever required. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Omit the “$” sign in your response.)


Variable overhead rate variance	$	(Click to select) U None F
Variable overhead efficiency variance	$	(Click to select) None F U

2a.

Summarize the variances that you computed in (1) above by showing the net overall favorable or unfavorable variance for October. (Input the amount as a positive value. Leave no cells blank be certain to enter “0” wherever required. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Omit the “$” sign in your response.)

Net variance

$

(Click to select) F None U

3.

Pick out the two most significant variances that you computed in (1) above. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.)

	Materials price variance
	Labor efficiency variance
	Variable overhead efficiency variance
	Labor rate variance
	Variable overhead rate variance
	Materials quantity variance

managerial accounting 447256

Aug 29, 2021 | Uncategorized

Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor hours and its standard cost card per unit is as follows:

Direct material: 5 pounds at $10 per pound $ 50

Direct labor: 3 hours at $14 per hour 42

Variable overhead: 3 hours at $4 per hour 12

Total standard variable cost per unit $ 104

The company also established the following cost formulas for its selling expenses:

Fixed Cost per Month Variable Cost per Unit Sold

Advertising $ 390,000

Sales salaries and commissions $ 290,000 $ 12.00

Shipping expenses $ 3.00

The planning budget for March was based on producing and selling 29,000 units. However, during March the company actually produced and sold 34,200 units and incurred the following costs:

a. Purchased 180,000 pounds of raw materials at a cost of $9.5 per pound. All of this material was used in production.

b. Direct laborers worked 74,000 hours at a rate of $15 per hour.

c. Total variable manufacturing overhead for the month was $440,200.

d. Total advertising, sales salaries and commissions, and shipping expenses were $392,000, $690,000, and $134,000, respectively.

Required:

What is the materials price variance for March? (Input the amount as a positive value. Leave no cells blank be certain to enter “0” wherever required. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance.).)

Materials price variance $

accounting 447260

Aug 29, 2021 | Uncategorized

Prepare the adjusting entries on January 31. Account titles are Accumulated Depreciation%u2014 Equipment, Depreciation Expense, Service Revenue, Accounts Receivable, Insurance Expense, Interest Expense, Interest Payable, Prepaid Insurance, Supplies, Supplies Expense, Utilities Expense, and Accounts Payable. The unadjusted trial balance for Sierra Corp. is shown in Illustration 4 4 (page 168). Instead of the adjusting entries shown in the text at October 31, assume the following adjustment data. 1. Supplies on hand at October 31 total $500. 2. Expired insurance for the month is $100. 3. Depreciation for the month is $75. 4. As of October 31, services worth $800 related to the previously recorded unearned revenue had been performed. 5. Services performed but unbilled (and no receivable has been recorded) at October 31 are $280. 6. Interest expense accrued at October 31 is $70. 7. Accrued salaries at October 31 are $1,400.

help please 447263

Aug 29, 2021 | Uncategorized

Prepare closing entries from the following work sheet.

Lakendra Enterprises
Worksheet
For the Year Ended December 31, 2010

	Adjusted Trial Balance		Income Statement		Balance Sheet
Account Title	Debit	Credit	Debit	Credit	Debit	Credit
Cash	26,500				26,500
Accounts Receivable	7,000				7,000
Supplies	1,000				1,000
Equipment	18,500				18,500
Accumulated Depr Equip		5,000				5,000
Accounts Payable		11,000				11,000
Wages Payable		1,000				1,000
Lakendra Thomas, Capital		8,000				8,000
Lakendra Thomas, Drawing	2,000				2,000
Fees Earned		59,500		59,500
Wages Expense	19,000		19,000
Rent Expense	7,000		7,000
Depreciation Expense	3,500		3,500
Totals	84,500	84,500	29,500	59,500	55,000	25,000
Net Income (Loss)			30,000			30,000
			59,500	59,500	55,000	55,000

financial accounting 447266

Aug 29, 2021 | Uncategorized

Prepare an income statement for the month ended March 31, 2012.

Prepare a classified balance sheet at March 31, 2012.

Info:

Received contribution of $20,000 from each of the two principal owners of the new business in exchange for shares and stock.

Signed a two year promissory note at the bank and received cash of $15,000. Interest, along with the 15,000, will be repaid after 2 years.

Purchased $700 in miscellaneous supplies on account. The company has 30 days to pay for the supplies.

Billed a client $4,000 for services rendered by Expert in helping to install a new computer system. The client is to pay 25% of the bill upon its receipt and the remaining balance within 30 days.

Received 25% of the amount billed to the client on March 19.

Received cash of $2,800 for services provided in assisting a client in selecting software for its computer.

Purchased a computer syster for $8,000 in cash

Paid $3,300 of salaries and wages for march

Received and paid $1,400 in in gas, electric, and water Bills

Companys Name is Consulting services INC

hmwk 15 13 447269

Aug 29, 2021 | Uncategorized

Prepare journal entries to record the following transactions and events of Kash Company.

2011

Jan. 2

Purchased 30,000 shares of Bushtex Co. common stock for $204,000 cash plus a broker’s fee of $3,480 cash. Bushtex has 90,000 shares of common stock outstanding and its policies will be significantly influenced by Kash.

Sept. 1

Bushtex declared and paid a cash dividend of $3.10 per share.

Dec. 31

Bushtex announced that net income for the year is $624,900

2012

June 1

Bushtex declared and paid a cash dividend of $3.60 per share.

Dec. 31

Bushtex announced that net income for the year is $699,750.

Dec. 31

Kash sold 10,000 shares of Bushtex for $162,500 cash.

managerial accoungting help 447281

Aug 29, 2021 | Uncategorized

The president of Univax, Inc., has just approached the company’s bank seeking short term financing for the coming year, Year 2. Univax is a distributor of commercial vacuum cleaners. The bank has stated that the loan request must be accompanied by a detailed cash budget that shows the quarters in which financing will be needed, as well as the amounts that will be needed and the quarters in which repayments can be made.

To provide this information for the bank, the president has directed that the following data be gathered from which a cash budget can be prepared:

a.	Budgeted sales and merchandise purchases for Year 2, as well as actual sales and purchases for the last quarter of Year 1, are as follows:

	Sales	Merchandise Purchases
Year 1:
Fourth quarter actual	$850,000	$425,000
Year 2:
First quarter estimated	$950,000	$570,000
Second quarter estimated	$950,000	$589,000
Third quarter estimated	$1,300,000	$780,000
Fourth quarter estimated	$1,430,000	$858,000

b.	The company typically collects 48% of a quarter%u2019s sales before the quarter ends and another 50% in the following quarter. The remainder is uncollectible. This pattern of collections is now being experienced in the actual data for the Year 1 fourth quarter.
c.	Some 20% of a quarter’s merchandise purchases are paid for within the quarter. The remainder is paid in the following quarter.
d.	Selling and administrative expenses for Year 2 are budgeted at $285,000 per quarter plus 10% of sales. Of the fixed amount, $90,000 each quarter is depreciation.
e.	The company will pay $60,000 in cash dividends each quarter.
f.	Land purchases will be made as follows during the year: $256,000 in the second quarter and $72,500 in the third quarter.
g.	The Cash account contained $76,000 at the end of Year 1. The company must maintain a minimum cash balance of at least $44,000.
h.	The company has an agreement with a local bank that allows the company to borrow in increments of $1,000 at the beginning of each quarter, up to a total loan balance of $600,000. The interest rate on these loans is 1% per month, and for simplicity, we will assume that interest is not compounded. The company would, as far as it is able, repay the loan plus accumulated interest at the end of the year.
i.	At present, the company has no loans outstanding.

Required:

1a.

Prepare a schedule of expected cash collections on sales by quarter and in total for Year 2. (Leave no cells blank be certain to enter “0” wherever required.)

Schedule of Expected Cash Collections
	Year 2 Quarter
	First	Second	Third	Fourth	Year Total
Year 1 %u2014 Fourth quarter sales	$	$	$	$	$
Year 2 %u2014 First quarter sales
Year 2 %u2014 Second quarter sales
Year 2 %u2014 Third quarter sales
Year 2 %u2014 Fourth quarter sales

Total cash collections	$	$	$	$	$

1b.

Prepare a schedule of expected cash disbursements for merchandise purchases, by quarter and in total for Year 2. (Leave no cells blank be certain to enter “0” wherever required.)

Schedule of Expected Cash Disbursements%u2014Merchandise Purchases
	Year 2 Quarter
	First	Second	Third	Fourth	Year Total
Year 1 %u2014 Fourth quarter purchases	$	$	$	$	$
Year 2 %u2014 First quarter purchases
Year 2 %u2014 Second quarter purchases
Year 2 %u2014 Third quarter purchases
Year 2 %u2014 Fourth quarter purchases

Total cash disbursements	$	$	$	$	$

2.	Compute the expected cash disbursements for selling and administrative expenses, by quarter and in total, for Year 2.

	Cash Disbursements
First	$
Second	$
Third	$
Fourth	$

Year	$

3.

Prepare a cash budget by quarter and in total for Year 2. Assume that selling and administrative expenses are paid in the month incurred. (Input all amounts as positive values except cash deficiency, repayments and interest which should be indicated by a minus sign. Leave no cells blank be certain to enter “0” wherever required. Total Financing should be indicated with a minus sign when the company is repaying amounts that were previously borrowed.)

Univax, Inc. Cash Budget
	Year 2 Quarter
	First	Second	Third	Fourth	Year Total
Cash balance, beginning	$	$	$	$	$
Add collections from sales

Total cash available

Less disbursements:
Merchandise purchases
Selling and administrative expenses
Dividends
Land

Total disbursements

Excess (deficiency) of receipts over disbursements

Financing:
Borrowings
Repayments
Interest

Total financing

Cash balance, ending	$	$	$	$	$

show all work 447287

Aug 29, 2021 | Uncategorized

Pringle Company distributes a single product. The company%u2019s sales and expenses for a recent month follow:

	Total		Per Unit
Sales	$	316,000	$	20
Variable expenses		221,200		14

Contribution margin		94,800	$	6
Fixed expenses		75,000

Net operating income	$	19,800

Required:
1.	What is the monthly break even point in units sold and in sales dollars?


Break even point in unit sales	units
Break even point in sales dollars	$

2.	Without resorting to computations, what is the total contribution margin at the break even point?

Total contribution margin

$

3.	How many units would have to be sold each month to earn a target profit of $30,000? Use the formula method.

Units sold

4.	Refer to the original data. Compute the company’s margin of safety in both dollar and percentage terms.(Round your percentage answer to 2 decimal places.)

	Dollars	Percentage
Margin of safety	$	%

5.	What is the company%u2019s CM ratio? If monthly sales increase by $79,000 and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase?


CM ratio	%
Net operating income increases by	$

check my workreferencesebook & resources

pringle company 447288

Aug 29, 2021 | Uncategorized

Pringle company sells a single product. The company’s sales and expenses for a recent month follows;

	Total	Per Unit
Sales	$600,000.00	$40.00
less Variable Expenses	$420,000.00	$28.00
contribution margin	$180,000.00	$12.00
less fixed expenses	$150,000.00
net operating income	$30,000.00

Required:

A: What is the monthly break even point in units sold and in sales dollars?

B: Without resorting to computations, what is the total contribution margin at the break even point?

C: How many units would have to be sold each month to earn a minimum target profit of $ 18,000? Use the contribution

margin method. Verify your answer by preparing a contribution margin income statement at the target level of sales.

D: Refer to the original data. Compute the company’s margin of safety in both dollar and percentage terms

Break down each step and show your work !!!

mr earl pearl accountant for margie knall co inc has prepared the following product 447099

Aug 29, 2021 | Uncategorized

Mr. Earl Pearl, accountant for Margie Knall Co., Inc., has prepared the following product line income data:

			Product
	Total		A		B		C
Sales	$	117,000	$	51,000	$	29,000	$	37,000
Variable expenses		62,700		30,900		10,900		20,900

Contribution margin		54,300		20,100		18,100		16,100

Fixed expenses:
Rent		7,700		3,400		1,900		2,400
Depreciation		8,700		3,900		2,100		2,700
Utilities		5,890		2,900		590		2,400
Supervisors’ salaries		6,890		2,400		590		3,900
Maintenance		4,080		2,400		690		990
Administrative expenses		12,700		3,900		2,900		5,900

Total fixed expenses		45,960		18,900		8,770		18,290

Net operating income	$	8,340	$	1,200	$	9,330	$	(2,190)

The following additional information is available:
	The factory rent of $1,590 assigned to Product C is avoidable if the product were dropped.
	The company’s total depreciation would not be affected by dropping C.
	Eliminating Product C will reduce the monthly utility bill from $2,400 to $890.
	All supervisors’ salaries are avoidable.
	If Product C is discontinued, the maintenance department will be able to reduce monthly expenses from $4,080 to $2,900.
	Elimination of Product C will make it possible to cut two persons from the administrative staff; their combined salaries total $3,900.

Required:
1.	Calculate the advantage or disadvantage in dropping Product C. (Input the amount as a positive value. Omit the “$” sign in your response.)

(Click to select) Disadvantage Advantage in dropping Product C

$

2.

Should the product be dropped?

	Yes
	No

accounting help 447145

Aug 29, 2021 | Uncategorized

Nolan Mills uses a standard cost system. During May, Nolan manufactured 15,000 pillowcases, using 27,600 yards of fabric costing $3.05 per yard and incurring direct labor costs of $20,995 for 3,230 hours of direct labor. The standard cost per pillowcase assumes 1.75 yards of fabric at $3.10 per yard, and 0.20 hours of direct labor at $5.95 per hour.

a.

Compute both the price variance and quantity variance relating to direct materials used in the manufacture of pillowcases in May. (Indicate the effect of each variance by selecting “F” for favourable, “U” for unfavourable, and “None” for no effect (i.e., zero variance). Negative amounts should be indicated by a minus sign. Omit the “$” sign in your response.)


Materials price variance	$	(Click to select) None U F
Materials quantity variance	$	(Click to select) U None F

b.

Compute both the rate variance and efficiency variance for direct labor costs incurred in manufacturing pillowcases in May. (Indicate the effect of each variance by selecting “F” for favourable, “U” for unfavourable, and “None” for no effect (i.e., zero variance). Round your answers to 2 decimal places. Negative amounts should be indicated by a minus sign. Omit the “$” sign in your response.)


Labor rate variance	$	(Click to select) U None F
Labor efficiency variance	$	(Click to select) U None F

chapter 12 differential analysis 447155

Aug 29, 2021 | Uncategorized

That old equipment for producing subassemblies is worn out, said Paul Taylor, president of Timkin Company. We need to make a decision quickly. The company is trying to decide whether it should rent new equipment and continue to make its subassemblies internally, or whether it should discontinue production of its subassemblies and purchase them from an outside supplier. The alternatives follow:

Alternative 1:	Rent new equipment for producing the subassemblies for $60,000 per year.
Alternative 2:	Purchase subassemblies from an outside supplier for $9 each.

Timkin Companys current costs per unit of producing the subassemblies internally (with the old equipment) are given below. These costs are based on a current activity level of 40,000 subassemblies per year:


Direct materials	$	2.44
Direct labor		5.00
Variable overhead		0.60
Fixed overhead ($0.75 supervision, $0.80 depreciation, and $2 general company overhead)		3.55

Total cost per unit	$	11.59

The new equipment would be more efficient and, according to the manufacturer, would reduce direct labor costs and variable overhead costs by 15%. Supervision cost ($30,000 per year) and direct materials cost per unit would not be affected by the new equipment. The new equipment’s capacity would be 60,000 subassemblies per year.

The total general company overhead would be unaffected by this decision.

Required:
1.	The president is unsure what the company should do and would like an analysis showing the unit costs and total costs for each of the two alternatives given above. Assume that 40,000 subassemblies are needed each year.

a.	What will be the total relevant cost of 40,000 subassemblies if they are manufactured internally as compared to being purchased? (Do not round intermediate calculations. Omit the “$” sign in your response.)

Total relevant cost (40,000 subassemblies)

$

b.	What would be the per unit cost of the each subassembly manufactured internally? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the “$” sign in your response.)

Per unit cost of subassembly

$

2a 1.

What will be the total relevant cost of 50,000 subassemblies if they are manufactured internally? (Do not round intermediate calculations. Omit the “$” sign in your response.)

Total relevant cost (50,000 subassemblies)

$

2a 2.

What would be the per unit cost of subassembly? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the “$” sign in your response.)

Per unit cost of subassembly

$

2b 1.

What will be the total relevant cost of 60,000 subassemblies if they are manufactured internally? (Do not round intermediate calculations. Omit the “$” sign in your response.)

Total relevant cost (60,000 subassemblies)

$

2b 2.

What would be the per unit cost of subassembly? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the “$” sign in your response.)

Per unit cost of subassembly

$

please answer my question and explain how you got the answer thank you 447164

Aug 29, 2021 | Uncategorized

Outback Outfitters sells recreational equipment. One of the company’s products, a small camp stove, sells for $110 per unit. Variable expenses are $77 per stove, and fixed expenses associated with the stove total $151,800 per month.

Requirement 4:

At present, the company is selling 11,000 stoves per month. The sales manager is convinced that a 10% reduction in the selling price would result in a 25% increase in monthly sales of stoves. How many stoves would have to be sold at the new selling price to yield a minimum net operating income of $71,000 per month?(Round your answer to the nearest whole number.)

Number of Stoves

accouting help 447166

Aug 29, 2021 | Uncategorized

Outdoor Outfitters has created a flexible budget for the 70,000 unit and the 80,000 unit levels of activity as shown below. Complete Outdoor Outfitters’s flexible budget at the 87,300 unit level of activity. Assume that the cost of goods sold and variable operating expenses vary directly with sales and that income taxes remain at 30 percent of operating income. (Omit the “$” sign in your response.)

	70,000 Units		80,000 Units		87,300 units
Sales	$	1,400,000	$	1,600,000	$
Cost of goods sold		840,000		960,000

Gross profit on sales	$	560,000	$	640,000	$
Operating expenses ($90,000 fixed)		370,000		410,000

Operating income	$	190,000	$	230,000	$
Income taxes (30% of operating income)		57,000		69,000

Net income	$	133,000	$	161,000	$

managerial accounting 447176

Aug 29, 2021 | Uncategorized

	Standard	Actual
Rate	$12.00	$12.25
Hours	18,500	17,955
Units of Production		9,450

Calculate the Total Direct Labor Variance using the above information

A) $2,051.25 Favorable

B) $2,051.25 Unfavorable

C) $2,362.50 Unfavorable

D) $2,362.50 Favorable

The standard costs and actual costs for factory overhead for the manufacture of 2,500 units of actual production are as follows:

Standard Costs
Fixed overhead (based on 10,000 hours)	3 hours @ $.80 per hour
Variable overhead	3 hours @ $2.00 per hour
Actual Costs
Total variable cost, $18,000
Total fixed cost, $8,000

The amount of the total factory overhead cost variance is:

A) $5,000 unfavorable

B) $2,000 favorable

C) $0

D) $2,500 unfavorable

The management of Nebraska Corporation is considering the purchase of a new machine costing $490,000. The company’s desired rate of return is 10%. The present value factors for $1 at compound interest of 10% for 1 through 5 years are 0.909, 0.826, 0.751, 0.683, and 0.621, respectively. In addition to the foregoing information, use the following data in determining the acceptability in this situation:

Year	Income from Operations	Net Cash Flow
1	$100,000	$180,000
2	40,000	120,000
3	40,000	100,000
4	10,000	90,000
5	10,000	120,000

The average rate of return for this investment is:

A) 58%

B) 10%

C) 18%

D) 16%

Department G had 3,600 units, 25% completed at the beginning of the period, 11,000 units were completed during the period, 3,000 units were one fifth completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period:

Work in process, beginning of period	$40,000
Costs added during period:
Direct materials (10,400 at $8)	83,200
Direct labor	63,000
Factory overhead	25,000

Assuming that all direct materials are placed in process at the beginning of production and that the first in, first out method of inventory costing is used, what is the total cost of 3,600 units of beginning inventory which were completed during the period (round unit cost calculations to four decimal places)?

A) $62,206

B) $19,275

C) $16,163

D) $40,000

A business is operating at 90% of capacity and is currently purchasing a part used in its manufacturing operations for $15 per unit. The unit cost for the business to make the part is $20, including fixed costs, and $12, not including fixed costs. If 30,000 units of the part are normally purchased during the year but could be manufactured using unused capacity, what would be the amount of differential cost increase or decrease from making the part rather than purchasing it?

A) $ 90,000 cost increase

B) $ 90,000 cost decrease

C) $150,000 cost increase

D) $150,000 cost increase

A business received an offer from an exporter for 20,000 units of product at $15 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available:

Domestic unit sales price	$21
Unit manufacturing costs:
Variable	12
Fixed	5

What is the differential revenue from the acceptance of the offer?

A) $240,000

B) $420,000

C) $120,000

D) $300,000

Quail Co. can further process Product B to produce Product C. Product B is currently selling for $60 per pound and costs $42 per pound to produce. Product C would sell for $82 per pound and would require an additional cost of $13 per pound to produce. What is the differential revenue of producing and selling Product C?

A) $18 per pound

B) $45 per pound

C) $42 per pound

D) $22 per pound

The production department is proposing the purchase of an automatic insertion machine. They have identified 3 machines and have asked the accountant to analyze them to determine the best average rate of return.

	Machine A	Machine B	Machine C
Estimated Average Income	$40,000	$50,000	$75,000
Average Investment	$300,000	$250,000	$500,000

A) Machine A

B) Machine B

C) Machine B or C

D) Machine C

The cost of merchandise sold during the year was $45,000. Merchandise inventories were $13,500 and $10,500 at the beginning and end of the year, respectively. Accounts payable were $7,000 and $5,000 at the beginning and end of the year, respectively. Using the direct method of reporting cash flows from operating activities, cash payments for merchandise total

A) $44,000

B) $50,000

C) $46,000

D) $40,000

	Standard	Actual
Variable OH Rate	$3.35
Fixed OH Rate	$1.80
Hours	18,900	17,955
Fixed Overhead	$46,000
Actual Variable Overhead		$67,430
Total Factory Overhead		$101,450

Calculate the variable factory overhead controllable variance using the above information:

A) $7,280.75 Favorable

B) $7,280.75 Unfavorable

C) $8,981.75 Favorable

D) $8,981.75 Unfavorable

Assume that Penguin Co. is considering disposing of equipment that cost $50,000 and has $40,000 of accumulated depreciation to date. Penguin Co. can sell the equipment through a broker for $25,000 less 5% commission. Alternatively, Teal Co. has offered to lease the equipment for five years for a total of $48,750. Penguin will incur repair, insurance, and property tax expenses estimated at $10,000. At lease end, the equipment is expected to have no residual value. The net differential income from the lease alternative is:

A) $15,000

B) $12,500

C) $25,000

D) $ 5,000

The management of Arkansas Corporation is considering the purchase of a new machine costing $490,000. The company’s desired rate of return is 10%. The present value factors for $1 at compound interest of 10% for 1 through 5 years are 0.909, 0.826, 0.751, 0.683, and 0.621, respectively. In addition to the foregoing information, use the following data in determining the acceptability in this situation:

Year	Income from Operations	Net Cash Flow
1	$100,000	$180,000
2	40,000	120,000
3	40,000	100,000
4	10,000	90,000
5	10,000	120,000

The net present value for this investment is:

A) positive $36,400

B) Negative $126,800

C) positive $55,200

D) Negative $16,170

Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tapes drives, and wire drives. The indirect labor can be traced to four separate activity pools. The budgeted activity cost and activity base data by product are provided below.

		Activity Cost			Activity Base
Procurement		$370,000			Number of purchase orders
Scheduling		250,000			Number of production orders
Materials handling		500,000			Number of moves
Product development		730,000			Number of engineering changes
Production		1,500,000			Machine hours
	Number of Purchase Orders		Number of Production Orders	Number of Moves		Number of Engineering Changes	Machine Hours	Number of Units
Disk drives	4,000		300	1,400		10	2,000	2,000
Tape drives	4,000		150	800		10	8,000	4,000
Wire drives	12,000		800	4,000		25	10,000	2,500

Determine the activity based cost for each wire drive unit.

A) $744.06

B) $173.51

C) $394.12

D) $204.13

The St. Augustine Corporation originally budgeted for $360,000 of fixed overhead. Production was budgeted to be 12,000 units. The standard hours for production were 5 hours per unit. The variable overhead rate was $3 per hour. Actual fixed overhead was $360,000 and actual variable overhead was $170,000. Actual production was 11,700 units.

Compute the factory overhead volume variance.

A) $5,500F

B) $9,000U

C) $5,500U

D) $9,000F

The condensed income statement for a business for the past year is presented as follows:

	Product
	F	G	H	Total
Sales	$300,000	$210,000	$340,000	$850,000
Less variable costs	180,000	190,000	220,000	590,000
Contribution margin	$120,000	$20,000	$120,000	$260,000
Less fixed costs	50,000	50,000	40,000	140,000
Income (loss) from oper.	$70,000	$(30,000)	$ 80,000	$120,000

Management is considering the discontinuance of the manufacture and sale of Product G at the beginning of the current year. The discontinuance would have no effect on the total fixed costs and expenses or on the sales of Products F and H. What is the amount of change in net income for the current year that will result from the discontinuance of Product G?

A) $30,000 increase

B) $20,000 decrease

C) $30,000 decrease

D) $20,000 increase

The management of Nebraska Corporation is considering the purchase of a new machine costing $490,000. The company’s desired rate of return is 10%. The present value factors for $1 at compound interest of 10% for 1 through 5 years are 0.909, 0.826, 0.751, 0.683, and 0.621, respectively. In addition to the foregoing information, use the following data in determining the acceptability in this situation:

Year	Income from Operations	Net Cash Flow
1	$100,000	$180,000
2	40,000	120,000
3	40,000	100,000
4	10,000	90,000
5	10,000	120,000

The cash payback period for this investment is:

A) 5 years

B) 4 years

C) 3 years

D) 2 years

Production estimates for July are as follows:

Estimated inventory (units), July 1	8,500
Desired inventory (units), July 31	10,500
Expected sales volume (units), July	76,000

For each unit produced, the direct materials requirements are as follows:

Direct material A ($5 per lb.)	3 lbs.
Direct material B ($18 per lb.)	1/2 lb.

The number of pounds of materials A and B required for July production is:

A) 216,000 lbs. of A; 72,000 lbs. of B

B) 216,000 lbs. of A; 36,000 lbs. of B

C) 225,000 lbs. of A; 37,500 lbs. of B

D) 234,000 lbs. of A; 39,000 lbs. of B

The rate of earnings is 10% and the cash to be received in three years is $10,000. Determine the present value amount, using the following partial table of present value of $1 at compound interest:

Year	6%	10%	12%
1	.943	.909	.893
2	.890	.826	.797
3	.840	.751	.712
4	.792	.683	.636

A) $8,260

B) $7,510

C) $13,316

D) $6,830

The Marx Company issued $100,000 of 12% bonds on April 1, 2010 at face value. The bonds pay interest semiannually on January 1 and July 1. The bonds are dated January 1, 2010, and mature on January 1, 2014. The total interest expense related to these bonds for the year ended December 31, 2010 is

A) $3,000

B) $1,000

C) $9,000

D) 12,000

Zipee Inc.’s unit selling price is $90, the unit variable costs are $40.50, fixed costs are $170,000, and current sales are 12,000 units. How much will operating income change if sales increase by 5,000 units?

A) $175,000 increase

B) $125,000 decrease

C) $75,000 increase

D) $247,500 increase

managerial accoungting help 447187

Aug 29, 2021 | Uncategorized

The Pacific Manufacturing Company operates a job order costing system and applies overhead cost to jobs on the basis of direct labor cost. Its predetermined overhead rate was based on a cost formula that estimated $117,000 of manufacturing overhead for an estimated allocation base of $90,000 direct labor dollars. The company has provided the following data:

Inventories	Beginning		Ending
Raw materials	$	25,000	$	15,000
Work in process	$	44,000	$	38,000
Finished goods	$	75,000	$	62,000

The following actual costs were incurred during the year:


Purchase of raw materials (all direct)	$	135,000
Direct labor cost	$	86,000
Actual manufacturing overhead costs:
Insurance, factory	$	10,500
Depreciation of equipment	$	15,000
Indirect labor	$	38,200
Property taxes	$	8,800
Maintenance	$	13,000
Rent, building	$	31,000

Required:
1 a.	Compute the predetermined overhead rate for the year.

Predetermined overhead rate

%

1 b.

Compute the amount of underapplied or overapplied overhead for the year. (Input the amount as a positive value.)

(Click to select) Overapplied Underapplied overhead

$

2.	Prepare a schedule of cost of goods manufactured for the year. Assume all raw materials are used in production as direct materials. (Input all amounts as positive values.)

Pacific Manufacturing Company Schedule of Cost of Goods Manufactured
Direct materials:
(Click to select) Work in process, ending Raw materials inventory, beginning Raw materials inventory, ending Manufacturing overhead applied to work in process Work in process, beginning	$
(Click to select) Deduct Add : (Click to select) Work in process, ending Work in process, beginning Raw materials inventory, ending Purchases of raw materials Cost of goods manufactured

Total raw materials available
(Click to select) Deduct Add : (Click to select) Work in process, ending Raw materials inventory, ending Work in process, beginning Raw materials inventory, beginning Purchases of raw materials

Raw materials used in production		$
(Click to select) Work in process, beginning Direct labor Raw materials inventory, ending Purchases of raw materials Work in process, ending
(Click to select) Work in process, ending Work in process, beginning Purchases of raw materials Raw materials inventory, ending Manufacturing overhead applied to work in process

Total manufacturing cost
(Click to select) Add Deduct : (Click to select) Work in process, beginning Work in process, ending Raw materials inventory ending Raw materials inventory, beginning Purchases of raw materials


(Click to select) Add Deduct : (Click to select) Work in process, ending Raw materials inventory, beginning Raw materials inventory, ending Work in process, beginning Purchases of raw materials

Cost of goods manufactured		$

3.	Compute the unadjusted cost of goods sold for the year. (Do not include any underapplied or overapplied overhead in your cost of goods sold figure.)

Unadjusted cost of goods sold

$

4.	Job 137 was started and completed during the year. What price would have been charged to the customer if the job required $3,200 in materials and $4,700 in direct labor cost, and the company priced its jobs at 60% above the job%u2019s cost according to the accounting system?

Price to customer

$

5.	Direct labor made up $8,400 of the $38,000 ending Work in Process inventory balance. Supply the information missing below:


Direct materials	$
Direct labor	8,400
Manufacturing overhead

Work in process inventory	$ 38,000

acct 301 447191

Aug 29, 2021 | Uncategorized

Page 2

1. (TCO 8) Why is capital budgeting important? What is the net present value method? How do you know whether to accept a project using this method? (Points : 26)

2. (TCO 9) What are five different types of decisions that could use incremental analysis? What are the relevant costs in accepting an order at a special price? (Points : 26)

3. (TCO 10) How is a transfer price determined? Describe the cost based method. Do you think it is better than the market based method? (Points : 26)

4. (TCO 11) What is direct labor? Give an example of direct labor. How does direct labor differ from indirect labor? Give an example of an indirect labor. (Points : 26)

Page 3

1. (TCO 5) What is CVP analysis? Why is this an important analysis for a company to perform? (Points : 26)

2. (TCO 6) What is the financial budget? Describe the two things that need to be prepared for the financial budget. (Points : 26)

3. (TCO 7) What is responsibility accounting? What is a cost center? How does a cost center differ from a profit center? (Points : 26)

managerial accounting 447194

Aug 29, 2021 | Uncategorized

Papyrutech Corporation produces fine papers in three production departments%u2014Pulping, Drying, and Finishing. In the Pulping Department, raw materials such as wood fiber and rag cotton are mechanically and chemically treated to separate their fibers. The result is a thick slurry of fibers. In the Drying Department, the wet fibers transferred from the Pulping Department are laid down on porous webs, pressed to remove excess liquid, and dried in ovens. In the Finishing Department, the dried paper is coated, cut, and spooled onto reels. The company uses the weighted average method in its process costing system. Data for October for the Drying Department follow:

		Percent Completed
	Units	Pulping	Conversion
Work in process inventory, March 1	3100	100%	80%
Work in process inventory, March 31	7,200	100%	75%


Pulping cost in work in process inventory, March 1	$1054
Conversion cost in work in process inventory, March 1	$496
Units transferred to the next production department	138100
Pulping cost added during March	$51254
Conversion cost added during March	$28204

No materials are added in the Drying Department. Pulping cost represents the costs of the wet fibers transferred in from the Pulping Department. Wet fiber is processed in the Drying Department in batches; each unit in the above table is a batch and one batch of wet fibers produces a set amount of dried paper that is passed on to the Finishing Department.

Requirement 1:

Determine the equivalent units for March for pulping and conversion.

Pulping

Conversion

Equivalent units of production

Requirement 2:

Compute the costs per equivalent unit for March for pulping and conversion. (Round your answers to 2 decimal places. Omit the “$” sign in your response.)

Pulping

Conversion

Cost per equivalent unit

$

Requirement 3:
(a)	Determine the total cost of ending work in process inventory. (Round your Cost per equivalent unit to 2 decimal places and the final answer to the nearest dollar amount. Omit the “$” sign in your response.)

Pulping

Conversion

Total

Cost of ending work in process inventory

$

(b)

Determine the total cost of units transferred to the Finishing Department in March. (Round your Cost per equivalent unit to 2 decimal places and the final answer to the nearest dollar amount. Omit the “$” sign in your response.)

	Pulping	Conversion	Total
Cost of units completed and transferred out	$	$	$

acounting 447198

Aug 29, 2021 | Uncategorized

Parmitan Corporation has provided the following data concerning last month%u2019s manufacturing operations.

Purchases of raw materials $ 31,000

Indirect materials included in manufacturing overhead $ 4,940

Direct labor $ 58,500

Manufacturing overhead applied to work in process $ 87,800

Underapplied overhead $ 4,160

Beginning Ending

Inventories:

Raw materials $ 11,900 $ 19,200

Work in process $ 54,600 $ 68,900

Finished goods $ 34,600 $ 42,900

Required:

1. Prepare a schedule of cost of goods manufactured for the month. (Input all amounts as positive values.)

Parmitan Corporation

Schedule of Cost of Goods Manufactured

Direct materials:

$

:

Raw materials used in production

: $

Total manufacturing costs

:

Cost of goods manufactured $

2.

Prepare a schedule of cost of goods sold for the month. (Input all amounts as positive values.)

Parmitan Corporation

Schedule of Cost of Goods Sold

$

:

Adjusted cost of goods sold $

managerial accounting please answer to my problem 447200

Aug 29, 2021 | Uncategorized

A partially completed schedule of the company’s total and per unit costs over the relevant range of 65,000 to 105,000 units produced and sold annually is given. Complete the schedule of the company’s total and unit costs below (Round the “total costs” to the nearest dollar amount and the “cost per unit” to 2 decimal places. Omit the “$” sign in your response) :

	Units Produced and Sold
	65,000	85,000	105,000
Total costs:
Variable costs	$162,500	$	$
Fixed costs	490,000
Total costs	$652,500	$	$
Cost per unit:
Variable cost	$	$	$
Fixed cost
Total cost per unit	$	$	$

Assume that the company produces and sells 95,000 units during the year at a selling price of $8.7 per unit. Prepare a contribution format income statement for the year. (Input all amounts as positive values. Omit the “$” sign in your response.)

Income Statement For the Year Ended
(Click to select) Sales Contribution margin Fixed expense Variable expenses Cost of goods sold	$
(Click to select) Fixed expense Variable expenses Sales Cost of goods sold Contribution margin
(Click to select) Variable expenses Sales Cost of goods sold Contribution margin Fixed expense
(Click to select) Contribution margin Variable expenses Cost of goods sold Sales Fixed expense
(Click to select) Net operating loss Net operating income	$

partnership tax 447208

Aug 29, 2021 | Uncategorized

Partners W, X, Y, and Z form the Ace partnership, contributing the following:

	Interest		Basis	FMV	Liability
W	40%	Prop. 1	$40,000	$200,000	$160,000
X	40%	Prop. 2	$120,000	$60,000	$20,000
Y	10%	Prop. 3	$10,000	$70,000	$60,000
Z	10%	Prop. 4	$30,000	$20,000	$10,000

How much is each partner%u2019s basis in their partnership interest?

cost accounting 447213

Aug 29, 2021 | Uncategorized

Peaceful Corporation manufactures figurines based on the following information.

Standard costs	$20
Materials (4 ounces at $5)	$8
Direct labor (1 hour per unit)	$4
Variable overhead (based on direct labor hours)
Fixed overhead budget		$19,000
Actual results and costs
Materials purchased
Units	9,000
Cost	$39,600
Materials used in production
Finished product units	2,000
Raw material (ounces)	8,200
Direct labor hours	2,000
Direct labor cost	$20,000
Variable overhead costs	$5,980
Fixed overhead costs	$19,500

Required:

Prepare a performance report for Peaceful using the following headings.
1. Actual Production Costs
2. Flexible Budget Costs
3. Flexible Budget Variances
Compute the following variances (show calculations).
1. Materials usage variance
2. Labor rate variance
3. Labor efficiency variance
4. Variable overhead spending variance
5. Variable overhead efficiency variance
6. Fixed overhead budget variance
Give one possible explanation for each of the six variances computed in part b.

Problem 2:

The following is the current variable costing income statement for Dolly Corporation.

Sales (5,000 units)		$100,000
Variable expenses Cost of goods sold	$35,000
Selling (10% of sales)	$10,000	$45,000
Contribution margin		$55,000
Fixed expenses
Manufacturing overhead	$24,000
Administrative	$12,500	$36,500
Operating income		$18,500

Below is the following information on operations for Dolly Corporation.

Beginning inventory (units)	0
Units produced (units)	6,000
Manufacturing costs
Direct labor (per unit)	$5.00
Direct materials (per unit)	$2.30
Variable overhead (per unit)	$2.40

Required:
Prepare an absorption costing income statement.

Problem 3:

The following information was compiled for two models of cell phones.

	3G model	4G model	Average
Budgeted Contribution Margin	$80.00	$120.00	$95.25
Budgeted Sales in Units	28,000	18,000
Actual Sales in Units	28,600	16,500

Required:
Calculate the sales mix variance. (Show your calculations.)

standard costing 447214

Aug 29, 2021 | Uncategorized

Peaceful Corporation manufactures figurines based on the following information.

Standard costs	$20
Materials (4 ounces at $5)	$8
Direct labor (1 hour per unit)	$4
Variable overhead (based on direct labor hours)
Fixed overhead budget		$19,000
Actual results and costs
Materials purchased
Units	9,000
Cost	$39,600
Materials used in production
Finished product units	2,000
Raw material (ounces)	8,200
Direct labor hours	2,000
Direct labor cost	$20,000
Variable overhead costs	$5,980
Fixed overhead costs	$19,500

Required:

Prepare a performance report for Peaceful using the following headings.
1. Actual Production Costs
2. Flexible Budget Costs
3. Flexible Budget Variances
Compute the following variances (show calculations).
1. Materials usage variance
2. Labor rate variance
3. Labor efficiency variance
4. Variable overhead spending variance
5. Variable overhead efficiency variance
6. Fixed overhead budget variance
Give one possible explanation for each of the six variances computed in part b.

compute the activity rate for each activity cost pool determine the unit product cos 447219

Aug 29, 2021 | Uncategorized

Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow:

	Direct Labor Hours per unit	Annual Production
Rims	0.40	22,000 units
Posts	0.20	85,000 units

Additional information about the company follows:

a. Rims require $16 in direct materials per unit, and Posts require $9.

b. The direct labor wage rate is $15 per hour.

c. Rims are more complex to manufacture than Posts and they require special equipment.

d. The ABC system has the following activity cost pools:

				Estimated	Activity

Activity Cost Pool	Activity Measure	Estimated Overhead Cost		Rims	Posts	Total
Machine setups	Number of setups	$	22,000	89	75	164
Special processing	Machine hours	$	150,000	4,100	0	4,100
General factory	Direct labor hours	$	293,000	8,800	17,000	25,800

rev: 02 15 2011, 02_09_2013_QC_26287

1. value:

4.00 points

Required:

1.	Compute the activity rate for each activity cost pool. (Round your final answers to 2 decimal places.)

Activity Cost Pool	Activity Rate
Machine setups	$	per setup
Special processing	$	per MH
General factory	$	per DLH

rev: 02 15 2011 check my workreferencesebook & resources

2. value:

4.00 points

2.	Determine the unit product cost of each product according to the ABC system. (Do not round intermediate calculation. Round your final answers to 2 decimal places.)


Unit product cost of Rims	$
Unit product cost of Posts	$

determine the unit costs of each product according to the abc system 447221

Aug 29, 2021 | Uncategorized

Performance Products Corporation makes two products, titanium Rims and Posts. Data regarding the two products follow:

	Direct Labor Hours per Unit	Annual Production
Rims	0.60	21,000	units
Posts	0.20	50,000	units

Additional information about the company follows:

a.	Rims require $27 in direct materials per unit, and Posts require $19.
b.	The direct labor wage rate is $18 per hour.
c.	Rims are more complex to manufacture than Posts, and they require special equipment.
d.	The ABC system has the following activity cost pools:

	Estimated		Activity
Activity Cost Pool (and activity measure)	Overhead Cost		Rims	Posts	Total
Machine setups (number of setups)	$	34,020	135	108	243
Special processing (machine hours)	$	216,000	4,800	0	4,800
General factory (direct labor hours)	$	452,000	12,600	10,000	22,600

Required:
1.	Compute the activity rate for each activity cost pool. (Omit the “$” sign in your response.)

Activity Cost Pool	Activity Rate
Machine setups	$	per setup
Special processing	$	per MH
General factory	$	per DLH

2.	Determine the unit cost of each product according to the ABC system. (Do not round intermediate calculations. Round your answers to 2 decimal places. Omit the “$” sign in your response.)

	Rims	Posts
Direct materials	$	$
Direct labor
Overhead

Unit cost	$	$

I got the first part of the question but i cant figure out how to figure out the unit costs

can you please help me with finding out the answers to blank boxes 447229

Aug 29, 2021 | Uncategorized

Pillar Steel Co., which began operations on January 4, 2011, had the following subsequent transactions and events in its long term investments.

2011
Jan.	5	Pillar purchased 60,000 shares (25% of total) of Kildaire%u2019s common stock for $1,823,775.
Oct.	23	Kildaire declared and paid a cash dividend of $3.40 per share.
Dec.	31	Kildaire%u2019s net income for 2011 is $1,164,500, and the fair value of its stock at December 31 is $34.00 per share.

2012

Oct.	15	Kildaire declared and paid a cash dividend of $2.70 per share.
Dec.	31	Kildaire%u2019s net income for 2012 is $1,476,400, and the fair value of its stock at December 31 is $37.00 per share.

2013
Jan.	2	Pillar sold all of its investment in Kildaire for $2,033,300 cash.

references

Section Break

Difficulty: Hard

Learning Objective: 15 P3 Account for available for sale securities.

6. value:

14.00 points

Part 1

Assume that Pillar has a significant influence over Kildaire with its 25% share of stock.

Required:
1.	Prepare journal entries to record these transactions and events for Pillar. (Omit the “$” sign in your response.)

Date	General Journal	Debit	Credit
Jan. 5, 2011	(Click to select) Loss on sale of investments Earnings from long term investment Fair value adjustment Dividend revenue Commission earned Cash Long term investments Kildaire Unrealized gain equity
	(Click to select) Earnings from long term investment Dividend revenue Loss on sale of investments Commission earned Unrealized gain equity Cash Long term investments Kildaire Fair value adjustment

Oct. 23, 2011	(Click to select) Earnings from long term investment Dividend revenue Gain on sale of investments Fair value adjustment Unrealized gain equity Long term investments Kildaire Cash Loss on sale of investments
	(Click to select) Cash Fair value adjustment Long term investments Kildaire Gain on sale of investments Dividend revenue Loss on sale of investments Unrealized gain equity Earnings from long term investment

Dec. 31, 2011	(Click to select) Unrealized loss equity Earnings from long term investment Dividend revenue Loss on sale of investments Unrealized gain equity Gain on sale of investments Long term investments Kildaire Fair value adjustment
	(Click to select) Unrealized loss equity Long term investments Kildaire Gain on sale of investments Fair value adjustment Dividend revenue Earnings from long term investment Unrealized gain equity Loss on sale of investments

Oct. 15, 2012	(Click to select) Fair value adjustment Dividend revenue Unrealized gain equity Long term investments Kildaire Loss on sale of investments Cash Gain on sale of investments Earnings from long term investment
	(Click to select) Earnings from long term investment Cash Fair value adjustment Gain on sale of investments Dividend revenue Loss on sale of investments Long term investments Kildaire Unrealized gain equity

Dec. 31, 2012	(Click to select) Loss on sale of investments Earnings from long term investment Unrealized gain equity Gain on sale of investments Dividend revenue Fair value adjustment Long term investments Kildaire Cash
	(Click to select) Dividend revenue Cash Gain on sale of investments Earnings from long term investment Long term investments Kildaire Unrealized gain equity Loss on sale of investments Fair value adjustment

Jan. 2, 2013	(Click to select) Gain on sale of investments Unrealized loss equity Long term investments Dividend revenue Cash Unrealized gain equity Fair value adjustment Loss on sale of investments
	(Click to select) Cash Gain on sale of investments Fair value adjustment Dividend revenue Unrealized loss equity Long term investments Loss on sale of investments Unrealized gain equity
	(Click to select) Loss on sale of investments Unrealized gain equity Long term investments Kildaire Cash Gain on sale of investments Fair value adjustment Unrealized loss equity Dividend revenue

2.	Compute the carrying (book) value per share of Pillar%u2019s investment in Kildaire common stock as reflected in the investment account on January 1, 2013. (Round your answer to 2 decimal places. Omit the “$” sign in your response.)

Carrying value per share

$

3.	Compute the net increase or decrease in Pillar%u2019s equity from January 5, 2011, through January 2, 2013, resulting from its investment in Kildaire. (Omit the “$” sign in your response.)

The

(Click to select) Net increase Net decrease

in Pillar’s equity is

$

check my workeBook Links (2)references

Worksheet	Learning Objective: 15 P3 Account for available for sale securities.
Difficulty: Hard	Learning Objective: 15 P4 Account for equity securities with significant influence.

7. value:

14.00 points

Part 2

Assume that although Pillar owns 25% of Kildaire%u2019s outstanding stock, circumstances indicate that it does not have a significant influence over the investee and that it is classified as an available for sale security investment.

Required:
1.	Prepare journal entries to record the preceding transactions and events for Pillar. Also prepare an entry dated January 2, 2013, to remove any balance related to the fair value adjustment. (Omit the “$” sign in your response.)

Date	General Journal	Debit	Credit
Jan. 5, 2011	(Click to select) Dividend revenue Unrealized gain equity Long term investments AFS Unrealized loss equity Gain on sale of investments Fair value adjustment AFS Cash Earnings from long term investment
	(Click to select) Earnings from long term investment Dividend revenue Gain on sale of investments Unrealized loss equity Cash Fair value adjustment AFS Long term investments AFS Unrealized gain equity

Oct. 23, 2011	(Click to select) Loss on sale of investments Unrealized loss equity Cash Gain on sale of investments Unrealized gain equity Fair value adjustment AFS Long term investments AFS Dividend revenue
	(Click to select) Loss on sale of investments Unrealized gain equity Unrealized loss equity Fair value adjustment AFS Long term investments AFS Gain on sale of investments Cash Dividend revenue

Dec. 31, 2011	(Click to select) Unrealized loss equity Unrealized gain equity Earnings from long term investment Fair value adjustment AFS Long term investments AFS Loss on sale of investments Dividend revenue Gain on sale of investments
	(Click to select) Earnings from long term investment Long term investments AFS Unrealized loss equity Fair value adjustment AFS Dividend revenue Gain on sale of investments Loss on sale of investments Unrealized gain equity

Oct. 15, 2012	(Click to select) Long term investments AFS Dividend revenue Loss on sale of investments Unrealized loss equity Gain on sale of investments Unrealized gain equity Fair value adjustment AFS Cash
	(Click to select) Unrealized loss equity Unrealized gain equity Long term investments AFS Gain on sale of investments Loss on sale of investments Dividend revenue Cash Fair value adjustment AFS

Dec. 31, 2012	(Click to select) Long term investments AFS Unrealized gain equity Cash Fair value adjustment AFS Earnings from long term investment Dividend revenue Gain on sale of investments Loss on sale of investments
	(Click to select) Fair value adjustment AFS Unrealized gain equity Cash Earnings from long term investment Long term investments AFS Loss on sale of investments Dividend revenue Gain on sale of investments

Jan. 2, 2013	(Click to select) Long term investments AFS Dividend revenue Cash Earnings from long term investment Loss on sale of investments Unrealized gain equity Unrealized loss equity Gain on sale of investments
	(Click to select) Gain on sale of investments Loss on sale of investments Unrealized gain equity Dividend revenue Cash Fair value adjustment AFS Long term investments AFS Unrealized loss equity
	(Click to select) Gain on sale of investments Fair value adjustment AFS Long term investments AFS Unrealized loss equity Unrealized gain equity Dividend revenue Loss on sale of investments Cash

Jan. 2, 2013	(Click to select) Earnings from long term investment Loss on sale of investments Cash Unrealized gain equity Dividend revenue Gain on sale of investments Fair value adjustment AFS Unrealized loss equity
	(Click to select) Cash Fair value adjustment AFS Unrealized gain equity Gain on sale of investments Dividend revenue Loss on sale of investments Unrealized loss equity Earnings from long term investment

2.	Compute the cost per share of Pillar%u2019s investment in Kildaire common stock as reflected in the investment account on January 1, 2013. (Round your answer to 2 decimal places. Omit the “$” sign in your response.)

Investment cost per share

$

3.	Compute the net increase or decrease in Pillar%u2019s equity from January 5, 2011, through January 2, 2013, resulting from its investment in Kildaire. (Omit the “$” sign in your response.)

The

(Click to select) net decrease net increase

in Pillar’s equity is

$

depreciation expense 447234

Aug 29, 2021 | Uncategorized

The plant asset and accumulated depreciation accounts of Pell Corporation had the following balances at December 31, 2012:

Plant Asset Accumulated
Depreciation
Land $ 360,000 $ 0
Land improvements 183,000 47,000
Building 1,520,000 360,000
Machinery and equipment 1,178,000 415,000
Automobiles 152,000 113,000

Transactions during 2013 were as follows:
a.
On January 2, 2013, machinery and equipment were purchased at a total invoice cost of $270,000, which included a $5,700 charge for freight. Installation costs of $29,000 were incurred.
b.
On March 31, 2013, a machine purchased for $60,000 in 2009 was sold for $37,500. Depreciation recorded through the date of sale totaled $25,500.
c.
On May 1, 2013, expenditures of $52,000 were made to repave parking lots at Pell’s plant location. The work was necessitated by damage caused by severe winter weather.
d.
On November 1, 2013, Pell acquired a tract of land with an existing building in exchange for 10,000 shares of Pell’s common stock that had a market price of $40 per share. Pell paid legal fees and title insurance totaling $24,000. Shortly after acquisition, the building was razed at a cost of $37,000 in anticipation of new building construction in 2014.
e.
On December 31, 2013, Pell purchased a new automobile for $15,750 cash and trade in of an old automobile purchased for $19,000 in 2009. Depreciation on the old automobile recorded through December 31, 2013, totaled $14,250. The fair value of the old automobile was $3,850.

Required:
For each asset classification, prepare a schedule showing depreciation expense for the year ended December 31, 2013, using the following depreciation methods and useful lives:

Land improvements%u2014Straight line; 15 years.
Building%u2014150% declining balance; 20 years.
Machinery and equipment%u2014Straight line; 10 years.
Automobiles%u2014150% declining balance; 3 years.

Depreciation is computed to the nearest month and no residual values are used. (Do not round intermediate calculations.)

Pell Corporation
DEPRECIATION EXPENSE
For the Year Ended December 31, 2013
Land Improvements $ ?
Building $ ?
Machinery and equipment $ ?
Automobiles and trucks $ ?

Total depreciation expense for 2013 = $

computing depreciation under alternative methods 447235

Aug 29, 2021 | Uncategorized

Plastic Works Corporation bought a machine at the beginning of the year at a cost of $12,000. The estimated useful life was five years, and the residual value was $2,000. Assume that the estimated productive life of the machine is 10,000 units. Expected annual production was: year 1, 3,000 units; year 2, 3,000 units; year 3, 2,000 units; year 4, 1,000 units; and year 5, 1,000 units.

(b)Units of production:

	Income Statement	Balance Sheet
Year	Depreciation Expense	Cost	Accumulated Depreciation	Book Value
At acquisition				$
1	$	$	$
2
3
4
5

(c)

Double declining balance:

	Income Statement	Balance Sheet
Year	Depreciation Expense	Cost	Accumulated Depreciation	Book Value
At acquisition				$
1	$	$	$
2
3
4

points will not be given for half solutions or incorrect ones 447237

Aug 29, 2021 | Uncategorized

Points will not be given for half solutions or incorrect ones. I want step by step explnations for all qustions.

1. The following information is available for Aggie Auto Sales:

Average operating assets $500,000

Controllable margin 50,000

Contribution margin 125,000

Minimum rate of return 8%

How much is Aggie Auto%u2019s residual income?

2. Niceville Company had sales of $400,000, variable costs of $200,000, and direct fixed costs totaling $100,000. The company%u2019s operating assets total $800,000, and its required return is 10%. How much is the residual income?

3. Oxford Company earned controllable margin of $250,000 on sales of $3,200,000. The division had average operating assets of $2,600,000. The company requires a return on investment of at least 8%. How much is residual income?

federal taxation 446953

Aug 29, 2021 | Uncategorized

Knowshon, sole owner of Moreno Inc., is contemplating electin S status for the corpoation. Provide recommendations related to Knoshons’s election under the following alternative scenarios:

a. At the end of the current year, Mareno Inc. has a net operating loss of $800,000 carryover. Beginning next year the company expects to return to to profitability. Knowshon projects that Moreno will report profits of $400,000, $500,000, and $600,000 over the next three years. What suggestions do you have regarding the timing of the S election? Explain.

b. How would you answer part (a) if Moreno Inc. had been operting profitably for several years and thus had no net operating loss?

c. While several of Moreno Inc.s assets have appreciated in value (to the tune of $2,000,000), the corporation has one property some land in a newly identified flood zone, that has declilned in value by $1,500,000. Knowshon plans on selling the loss property in the next year or two. Assume that Moreno does not have a net operating loss. What suggestions do you have for timing the sale of the flood zone property and why?

managerial accounting chapter 2 446954

Aug 29, 2021 | Uncategorized

Koffee Express operates a number of espresso coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand is $1,100 and the variable cost per cup of coffee served is $0.26. Round to 3 decimal places.

Cups of Coffee Served in a Week

	1,800	1,900	2,000
Fixed cost	$	$	$
Variable cost

Total cost	$	$	$

Average cost per cup of coffee served	$	$	$

due at 11 59 446977

Aug 29, 2021 | Uncategorized

The Lansing Community College registrar’s office is considering replacing some Canon copiers with faster copiers purchased from Kodak.

The office’s 5 Canon machines are expected to last 5 more years. They can each be sold immediately for $500; their resale value in 5 years will be zero. The total cost of the new Kodak equipment will be $118,000; the equipment will have a life of 5 years and a total disposal value at that time of $2,500.

The 5 Canon operators are paid $8.40 an hour each. They work a 40 hour week and 51 weeks a year. The machines break down periodically, resulting in annual repair costs of $1,320 for each machine. Supplies cost $1,440 a year for each machine.

The Kodak system will require only 3 regular operators to do the same work. Kodak has offered the college a maintenance contract that covers all machine breakdowns; the cost of the contract is $840 per year. Total cost for all supplies will be $3,360 per year.

budget income statement 446991

Aug 29, 2021 | Uncategorized

Lilliput, a one product mail order firm, buys its product for $65 per unit and sells it for $131 per unit. The sales staff receives a 10% commission on the sale of each unit. Its December income statement follows.

LILLIPUT COMPANY Income Statement For The Month Ended December 31, 2011
Sales	$	1,310,000
Cost of goods sold		650,000

Gross profit		660,000
Expenses
Sales commissions (10%)		131,000
Advertising		202,000
Store rent		24,100
Administrative salaries		40,500
Depreciation		50,500
Other expenses		12,100

Total expenses		460,200

Net income	$	199,800

Management expects December%u2019s results to be repeated in January, February, and March of 2012 without any changes in strategy. Management, however, has an alternative plan. It believes that unit sales will increase at a rate of 10% each month for the next three months (beginning with January) if the item’s selling price is reduced to $116 per unit and advertising expenses are increased by 10% and remain at that level for all three months. The cost of its product will remain at $65 per unit, the sales staff will continue to earn a 10% commission, and the remaining expenses will stay the same.

Required:

Prepare budgeted income statements for each of the months of January, February, and March that show the expected results from implementing the proposed changes. (Input all amounts as positive values.Omit the “$” sign in your response.)

HELP FILL IN THE BLANKS!

LILLIPUT COMPANY Budgeted Income Statement For Months of January, February, and March
	January	February	March
(Click to select) Interest expense Sales Advertising Sales commissions Depreciation	$	$	$
(Click to select) Sales commissions Advertising Interest expense Cost of goods sold Depreciation

(Click to select) Gross loss Gross profit
Expenses
(Click to select) Cost of goods sold Interest expense Sales Sales commissions Rent expense
(Click to select) Interest expense Sales Cost of goods sold Advertising Rent expense
(Click to select) Store rent Sales Cost of goods sold Interest expense Utilities expense
(Click to select) Sales Rent expense Administrative salaries Cost of goods sold Interest expense
(Click to select) Sales Depreciation Rent expense Interest expense Cost of goods sold
(Click to select) Interest expense Rent expense Other expenses Cost of goods sold Sales

Total expenses

(Click to select) Net loss Net income	$	$	$

managerial accounting 447002

Aug 29, 2021 | Uncategorized

Maga Company, which has only one product, has provided the following data concerning its most recent month of operations:


Selling price	$	190

Units in beginning inventory		0
Units produced		3,280
Units sold		3,170
Units in ending inventory		110

Variable cost per unit:
Direct materials	$	49
Direct labor	$	53
Variable manufacturing overhead	$	15
Variable selling and administrative	$	18
Fixed costs:
Fixed manufacturing overhead	$	101,680
Fixed selling and administrative	$	12,680

Required:

a.	What is the unit product cost for the month under variable costing?

b.	What is the unit product cost for the month under absorption costing?

c.	Prepare a contribution format income statement for the month using variable costing.

d.	Prepare an income statement for the month using absorption costing.

e.	Reconcile the variable costing and absorption costing net operating incomes for the month.

least squares regression method please use my question 447006

Aug 29, 2021 | Uncategorized

Magnano Inc.’s inspection costs are listed below:

	Units Produced	Inspection Costs
February	927	$4579
March	948	$4645
April	968	$4701
May	911	$4538
June	958	$4676
July	894	$4475
August	974	$4760
September	878	$4412

Management believes that inspection cost is a mixed cost that depends on units produced.

Using the least squares regression method, the estimate of the variable component of inspection cost per unit produced is closest to (Do not round intermediate calculations. Round your final answer to 2 decimal places.):

	$3.28
	$3.33
	$4.72
	$3.30

Using the least squares regression method, the estimate of the fixed component of inspection cost per month is closest to (Do not round intermediate calculations.):

	$4,604
	$4,789
	$1,494
	$1,522

waubansee corp uses the direct method to prepare its statement of cash flows relevan 447013

Aug 29, 2021 | Uncategorized

Waubansee Corp. uses the direct method to prepare its statement of cash flows. Relevant balances for Waubansee at December 31, 2012 and 2011, are as follows.

	December 31
Debits	2012	2011
Cash	$35,500	$32,230
Accounts receivable	32,790	29,640
Inventory	31,340	46,590
Property, plant, & equipment	108,140	92,700
Unamortized bond discount	4,170	5,210
Cost of goods sold	252,080	380,910
Selling expenses	141,400	171,630
General and administrative expenses	137,680	150,990
Interest expense	4,500	2,370
Income tax expense	20,310	61,590
	$767,910	$973,860

Credits
Allowance for doubtful accounts	$1,730	$1,120
Accumulated depreciation	16,443	13,380
Trade accounts payable	25,470	16,660
Income taxes payable	19,680	28,710
Deferred income taxes	5,060	4,380
8% callable bonds payable	44,510	21,400
Common stock	53,880	37,200
Paid in capital in excess of par—common stock	8,660	7,480
Retained earnings	44,310	64,640
Sales revenue	548,167	778,890
	$767,910	$973,860

Additional information:

1.		Waubansee purchased $15,440in equipment during 2012.
2.		Waubansee allocated one third of its depreciation expense to selling expenses and the remainder to general and administrative expenses.
3.		Bad debt expense for 2012 was $4,930, and write offs of uncollectible accounts totaled$4,320.

Determine what amounts Waubansee should report in its statement of cash flows for the year ended December 31, 2012, for the following items.

(a)	Cash collected from customers.	$
(b)	Cash paid to suppliers.	$
(c)	Cash paid for interest.	$
(d)	Cash paid for income taxes.	$
(e)	Cash paid for selling expenses.	$

cost accounting 447015

Aug 29, 2021 | Uncategorized

management has been reviewing company profitablity and is attempting to improve performance through better planning the company manufactures three products in the jewelry line

Necklaces Bracelets Rings

Selling price $50.00 $ 37.50 $25.00

Contribution margin $20.00 $15.00 $10.00

Machine time reqired 5 hours 25 30

Machine time is limited to 120 hours per month and demand for each product far exceed the company’s ablity to produce, at the precent time Quicksilver manufactures an equal number of each product, the sales manager has urged the company to concentrate on necklace production because of its high selling price relative to rings and bracelets Quicksilver will produce no rings or braceles if it accept this recommendtion . Ignor tax

A if the fixed cost are 2,500 per month what profit will the company obtain by following the sales manager’s recommendation

B what is the maximam profit obtainable and what product or product combination must be sold to obtain the maximam ( comput the contribution margin of each product per unit of constrained resource

accounting help 1 447029

Aug 29, 2021 | Uncategorized

On March 1 of the current year, Spicer Corporation compiled information to prepare a cash budget for March, April, and May. All of the company’s sales are made on account. The following information has been provided by Spicer’s management:

Month	Credit Sales
Jan.	$	300,000	(actual)
Feb.		400,000	(actual)
Mar.		443,000	(estimated)
Apr.		531,000	(estimated)
May		800,000	(estimated)

The company’s collection activity on credit sales historically has been as follows:


Collections in the month of the sale	50	%
Collections one month after the sale	30
Collections two months after the sale	15
Uncollectible accounts	5

Spicer’s total cash expenditures for March, April, and May have been estimated at $1,200,000 (an average of $400,000 per month). Its cash balance on March 1 of the current year is $500,000. No financing or investing activities are anticipated during the second quarter.

Compute Spicer’s budgeted cash balance at the ends of March, April, and May. (Omit the “$” sign in your response.)


Cash balance on March 31	$
Cash balance on April 30	$
Cash balance on May 31	$

transaction 8 447030

Aug 29, 2021 | Uncategorized

On March 1, fixtures and equipment were purchased for $5,500 with a downpayment of $2,000 plus a $3,500 note payable in one year. Interest of 6% per year is due when the note is repaid. The estimated life of the fixtures and equipment is 9 years with no expected salvage value. Depreciation on the fixtures and equipment is computed on a straight line basis. [Note: Record the March 1 equipment purchase first, then the March 31 depreciation adjusting entry, and finally the March 31 interest adjusting entry. Also, round all answers to the nearest cent.]

Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank
Dollar amount:
Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank
Dollar amount:
Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank
Dollar amount:
Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank
Dollar amount:
Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank
Dollar amount:
Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank
Dollar amount:
Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank
Dollar amount:
Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank
Dollar amount:

marine inc manufactures a product that is available in both a flexible and a rigid m 447033

Aug 29, 2021 | Uncategorized

Marine, Inc., manufactures a product that is available in both a flexible and a rigid model. The company has made the rigid model for years; the flexible model was introduced several years ago to tap a new segment of the market. Since introduction of the flexible model, the company%u2019s profits have steadily declined, and management has become concerned about the accuracy of its costing system. Sales of the flexible model have been increasing rapidly.

Overhead is applied to products on the basis of direct labor hours. At the beginning of the current year, management estimated that $621,000 in overhead costs would be incurred and the company would produce and sell 5,000 units of the flexible model and 40,000 units of the rigid model. The flexible model requires 1.6 hours of direct labor time per unit, and the rigid model requires 0.8 hours. Materials and labor costs per unit are given below:

	Flexible	Rigid
Direct materials cost per unit….	$150.00	$112.00
Direct labor cost per unit……….	$16.00	$8.00

Required:

1a. Compute the predetermined overhead rate using direct labor hours as the basis for allocating overhead costs to products.(Round your answer to 2 dicimal places)

1b. Compute the unit product cost for one unit of each model.(Do not round intermediate calculations. Round your final answers to 2 dicimal places)

2. An intern suggested that the company use activity based costing to cost its products. A team was formed to investigate this idea and it came back with the recommendation that four activity cost pools be used. These cost pools and their associated activities are listed below:

	Estimated
	Overhead	Expected Activity
Activity Cost Pool and Activity Measure	Cost	Flexible	Rigid	Total
Purchase orders (number of orders)…………….	$ 22,000	400	800	1,200
Rework requests (number of requests)………..	10,000	300	600	900
Product testing (number of tests)………………..	220,000	4,000	11,000	15,000
Machine related (machine hours)……………….	369,000	20,000	30,000	50,000

Compute the activity rate for each of the activity cost pools.

3. Using activity based costing, do the following:

a. Determine the total amount of overhead that would be applied to each model for the year.

b. Compute the unit product cost for one unit of each model.

graber corporation accounting 447037

Aug 29, 2021 | Uncategorized

The marketing department of Graber Corporation has submitted the following sales forecast for the upcoming fiscal year.

	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter
Budgeted unit sales	18,000	17,000	16,000	17,000

The selling price of the company%u2019s product is $26.00 per unit. Management expects to collect 75% of sales in the quarter in which the sales are made, 20% in the following quarter, and 5% of sales are expected to be uncollectible. The beginning balance of accounts receivable, all of which is expected to be collected in the first quarter, is $64,000.

The company expects to start the first quarter with 1,800 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 10% of the next quarter%u2019s budgeted sales. The desired ending finished goods inventory for the fourth quarter is 2,000 units.

1a.

Compute the company%u2019s total sales.

	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Year
Total sales	$	$	$	$	$

1b.

Complete the schedule of expected cash collections. (Do not round intermediate calculations. Leave no cells blank be certain to enter “0” wherever required.)

Graber Corporation Schedule of Expected Cash Collections
	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Year
Accounts receivable, beginning balance	$	$	$	$	$
1st Quarter sales
2nd Quarter sales
3rd Quarter sales
4th Quarter sales

Total cash collections	$	$	$	$	$

2.	Prepare the company%u2019s production budget for the upcoming fiscal year. (Input all amounts as positive values. Do not round intermediate calculations.)

Graber Corporation Production Budget
	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Year
Budgeted unit sales
(Click to select) Add Deduct : (Click to select) Ending inventory Beginning inventory

Total units needed
(Click to select) Add Deduct : (Click to select) Ending inventory Beginning inventory

Required production

please help 447056

Aug 29, 2021 | Uncategorized

MC Qu. 124 Given the following information, determine t…

Given the following information, determine the cost of goods sold at December 31 using the Weighted Average periodic inventory method.

December 2: 5 units were purchased at $7 per unit.

December 9: 10 units were purchased at $9.40 per unit.

December 11: 12 units were sold at $35 per unit.

December 15: 20 units were purchased at $10.15 per unit.

December 22: 18 units were sold at $35 per unit.

	$284.70
	$290.70
	$210.30
	$332.10
	$282.15

acct 212 447059

Aug 29, 2021 | Uncategorized

Memofax, Inc., produces memory enhancement kits for fax machines. Sales have been very erratic, with some months showing a profit and some months showing a loss. The company’s contribution format income statement for the most recent month is given below:


Sales (13,500 units at $20 per unit)	$	270,000
Variable expenses		189,000

Contribution margin		81,000
Fixed expenses		90,000

Net operating loss	$	(9,000)

Required:
1.	Compute the company’s CM ratio and its break even point in both units and dollars. (Omit the “%” and “$” signs in your response.)


CM ratio	%
Break even point in units
Break even point in dollars	$

2.

The sales manager feels that an $8,000 increase in the monthly advertising budget, combined with an intensified effort by the sales staff, will result in a $70,000 increase in monthly sales. If the sales manager is right, what will the revised net operating income or loss? (Use the incremental approach in preparing your answer.) (Omit the “$” sign in your response.)

is

$

3.

Refer to the original data. The president is convinced that a 10% reduction in the selling price, combined with an increase of $35,000 in the monthly advertising budget, will double unit sales. What will the new contribution format income statement look like if these changes are adopted? (Input all amounts as positive values. Omit the “$” sign in your response.)

Contribution Income Statement
	$





	$

4.

Refer to the original data. The company%u2019s advertising agency thinks that a new package would help sales. The new package being proposed would increase packaging costs by $0.60 per unit. Assuming no other changes, how many units would have to be sold each month to earn a profit of $4,500? (Do not round intermediate calculations.)

Sales units

5.	Refer to the original data. By automating, the company could slash its variable expenses in half. However, fixed costs would increase by $118,000 per month.

a.	Compute the new CM ratio and the new break even point in both units and dollars. (Do not round intermediate calculations. Omit the “%” and “$” signs in your response.)


CM ratio	%
Break even point in units
Break even point in dollars	$

b.	Assume that the company expects to sell 20,000 units next month. Prepare two contribution format income statements, one assuming that operations are not automated and one assuming that they are. (Omit the “$” and “%” signs in your response.)

Not Automated

Automated

Total	Per Unit	%	Total	Per Unit	%
$	$		$	$


	$			$


$			$

accounting 447067

Aug 29, 2021 | Uncategorized

Mercury Bag Company produces cases of grocery bags. The managers at Mercury are trying to develop budgets for the upcoming quarter. The following data have been gathered:


Projected sales in units		1,290	cases
Selling price per case	$	240
Inventory at the beginning of the quarter		150	cases
Target inventory at the end of the quarter		100	cases
Direct labor hours needed to produce one case		2	hours
Direct labor wages	$	10	per hour
Direct materials cost per case	$	8
Variable manufacturing overhead cost per case	$	6
Fixed overhead costs for the upcoming quarter	$	220,000

a.	Using the above information, develop Mercury’s sales forecast in dollars and production schedule in units. (Amounts to be deducted should be indicated with a minus sign. Omit the “$” sign in your response.)


Sales forecast:
Budgeted sales (in cases)	$
Selling price per case

Budgeted sales (in dollars)	$


Production schedule:
Budgeted sales (cases)	$
Target ending inventory

Cases budgeted to be available for sale
Less: Beginning inventory

Planned production(cases)	$

b.	What is Mercury’s budgeted variable manufacturing cost per case? (Omit the “$” sign in your response.)

Total variable cost per case

$

c.	Prepare Mercury’s manufacturing cost budget. (Round your cost per unit answer to 2 decimal places. Omit the “$” sign in your response.)


Variable manufacturing costs:
(Click to select) Direct labor Manufacturing overhead Selling overhead Direct materials Variable overhead	$
(Click to select) Rent payable Common stock Direct labor Direct material Interest expense
(Click to select) Manufacturing overhead Rent payable Interest expense Variable overhead Interest payable

Total variable manufacturing costs	$
(Click to select) Direct material Add: Fixed manufacturing overhead Depreciation expenses Less: Fixed manufacturing overhead Salaries expense

Total cost of finished goods manufactured	$

(Click to select) Manufacturing cost per unit Interest expense Rent payable Contribution margin per unit Selling cost per unit	$

d.	What is the projected ending value of the Inventory account? (Round intermediate calculations to 2 decimal places and your final answer to the nearest dollar amount. Omit the “$” sign in your response.)

Ending inventory value

$

cvp analysis what if questions sales mix issue 447079

Aug 29, 2021 | Uncategorized

Miller Metal Company makes a single product that sells for $32 per unit. Variable costs are $/unit abd fixed costs total $47,600/month

Required

a. Calculate the number of units that must be sold each month for the firm to break even

b. Assume current sales are $160,000. Calculate the margin of safety and the margin of safety ratios

c. Calculate operating income if 5,000 units are sold in a month

d. Calculate operating income if the selling price is raised to $33/unit, advertising expenditures are increased by $7,000/month and monthly unit sales volume becomes 5,400 units

e. Assume that the firm adds another product to its product line and that the new product sells for $20/unit, has a variable cost of $14/unit, and causes fixed expenditures in total to increase to $63,000/month. Calculate the firm’s operating income if 5,000 units of the orginal product and 4,000 units of the new product are sold each month. For the orginal product, use the selling price and variable costs data given in the problem statement

f. Calculate the firm’s operating income if 4,000 units of the orginal product and 5,000 units of the new product are sold each month

g. Explain why operating income is different in parts E and F, even though sales totaled 9,000 units is each case

show all work 447082

Aug 29, 2021 | Uncategorized

Fill in the missing amounts in each of the eight case situations below. Each case is independent of the others.

Required:
a.	Assume that only one product is being sold in each of the four following case situations:(Input all amounts as positive values except losses which should be indicated by a minus sign.)

	Case #1	Case #2	Case #3	Case #4
Units sold	8,100		19,800	5,400

Sales	$ 251,100	$ 387,400	$	$ 167,400
Variable expenses	113,400		237,600

Contribution margin	$ 137,700	$ 193,700	$ 178,200	$ 64,800
Fixed expenses	96,000	163,000		84,000

Net operating income (Loss)	$	$ 30,700	$ 95,200	$ (19,200)

Contribution margin per unit	$	$ 13	$ 9	$

b.	Assume that more than one product is being sold in each of the four following case situations: (Input all amounts as positive values except losses which should be indicated by a minus sign.)

	Case #1	Case #2	Case #3	Case #4
Sales	$ 449,000	$ 192,000	$	$ 304,000
Variable expenses		134,400		82,080

Contribution margin	$ 179,600	$ 57,600	$ 593,300	$ 221,920
Fixed expenses		51,000	473,000

Net operating income (loss)	$ 60,600	$	$ 120,300	$ (8,080)

Contribution margin ratio (percent)	40 %	%	85 %	%

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fill in the blanks 447083

Aug 29, 2021 | Uncategorized

Fill in the missing amounts in each of the eight case situations below. Each case is independent of the others.

Required:
a.	Assume that only one product is being sold in each of the four following case situations: (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the “$” sign in your response.)

	Case #1	Case #2	Case #3	Case #4
Units sold	9,000		20,000	5,000

Sales	$ 270,000	$ 350,000	$	$ 160,000
Variable expenses	162,000		280,000

Contribution margin	$ 108,000	$ 210,000	$ 120,000	$ 70,000
Fixed expenses	90,000	170,000		82,000

Net operating income (loss)	$	$ 40,000	$ 35,000	$ (12,000)

Contribution margin per unit	$	$ 15	$ 6	$

b.	Assume that more than one product is being sold in each of the four following case situations: (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the “$” and “%” signs in your response.)

	Case #1	Case #2	Case #3	Case #4
Sales	$ 450,000	$ 200,000	$	$ 300,000
Variable expenses		130,000		90,000

Contribution margin	$ 180,000	$ 70,000	$ 560,000	$ 210,000
Fixed expenses		60,000	470,000

Net operating income (loss)	$ 65,000	$	$ 90,000	$ (15,000)

Contribution margin ratio (percent)	40 %	%	80 %	%

cost volume profit 447090

Aug 29, 2021 | Uncategorized

Last month when Harrison Creations, Inc., sold 35,000 units, total sales were $281,000, total variable expenses were $227,610, and fixed expenses were $35,900.

Required:
1.	What is the company%u2019s contribution margin (CM) ratio? (Omit the “%” sign in your response.)

Contribution margin ratio

%

2.	Estimate the change in the company%u2019s net operating income if it were to increase its total sales by $1,400. (Omit the “$” sign in your response.)

Estimated change in net operating income

$

acct 203 447097

Aug 29, 2021 | Uncategorized

Mr. Earl Pearl, accountant for Margie Knall Co., Inc., has prepared the following product line income data:

			Product
	Total		A		B		C
Sales	$	116,000	$	52,000	$	28,000	$	36,000
Variable expenses		62,400		30,800		10,800		20,800

Contribution margin		53,600		21,200		17,200		15,200

Fixed expenses:
Rent		7,400		3,300		1,800		2,300
Depreciation		8,400		3,800		2,000		2,600
Utilities		5,680		2,800		580		2,300
Supervisors’ salaries		6,680		2,300		580		3,800
Maintenance		3,960		2,300		680		980
Administrative expenses		12,400		3,800		2,800		5,800

Total fixed expenses		44,520		18,300		8,440		17,780

Net operating income	$	9,080	$	2,900	$	8,760	$	(2,580)

The following additional information is available:
	The factory rent of $1,580 assigned to Product C is avoidable if the product were dropped.
	The company’s total depreciation would not be affected by dropping C.
	Eliminating Product C will reduce the monthly utility bill from $2,300 to $880.
	All supervisors’ salaries are avoidable.
	If Product C is discontinued, the maintenance department will be able to reduce monthly expenses from $3,960 to $2,800.
	Elimination of Product C will make it possible to cut two persons from the administrative staff; their combined salaries total $3,800.

Required:
1.	Calculate the advantage or disadvantage in dropping Product C. (Input the amount as a positive value. Omit the “$” sign in your response.)

(Click to select) Disadvantage Advantage in dropping Product C

$

2.

Should the product be dropped?

	Yes
	No

Aug 29, 2021 | Uncategorized

Verber Mortgage Company uses a process costing system to accumulate costs in its loan application department. When an application is completed, it is forwarded to the loan department for final processing. The following processing and cost data pertain to September.

?Materials are the forms used in the application process, and these costs are incurred at the beginning of the process. Conversion costs are incurred uniformly during the process.

Instructions

(a) Determine the equivalent units of service (production) for materials and conversion costs.

(b) Compute the unit costs and prepare a cost reconciliationschedule.

accounting 202 help 446858

Aug 29, 2021 | Uncategorized

Images.com is a small Internet retailer of high quality posters. The company has $800,000 in operating assets and fixed expenses of $160,000 per year. With this level of operating assets and fixed expenses, the company can support sales of up to $5 million per year. The company%u2019s contribution margin ratio is 10%, which means that an additional dollar of sales results in additional contribution margin, and net operating income, of 10 cents.

Required:
1.	Complete the following table showing the relationship between sales and return on investment (ROI).(Round your percentage answers to 2 decimal places. Omit the “$” and “%” signs in your response.)

Sales	Net Operating Income	Average Operating Assets	ROI
$4,500,000	$290,000	$800,000	%
$4,600,000	$	$800,000	%
$4,700,000	$	$800,000	%
$4,800,000	$	$800,000	%
$4,900,000	$	$800,000	%
$5,000,000	$	$800,000	%

2.	What happens to the company’s return on investment (ROI) as sales increase? (Round your answer to 2 decimal places. Omit the “%” sign in your response.)

ROI

(Click to select) decreases by will not change increases by

%

need help acct 212 446869

Aug 29, 2021 | Uncategorized

Information on four investment proposals is given below:

		Investment Proposal
	A		B		C		D
Investment required	$	(85,000)	$	(200,000)	$	(90,000)	$	(170,000)
Present value of cash inflows		119,000		250,000		135,000		221,000

Net present value	$	34,000	$	50,000	$	45,000	$	51,000

Life of the project		5 years		7 years		6 years		6 years

Required:
1.	Compute the project profitability index for each investment proposal. (Round your answers to 2 decimal places.)

Proposal	Project Profitability Index
A
B
C
D

2.

Rank the proposals in terms of preference.

	A B C D
	D C B A
	C A D B
	B C A D

acct 203 446876

Aug 29, 2021 | Uncategorized

Janes, Inc., is considering the purchase of a machine that would cost $430,000 and would last for 5 years, at the end of which, the machine would have a salvage value of $43,000. The machine would reduce labor and other costs by $103,000 per year. Additional working capital of $5,000 would be needed immediately, all of which would be recovered at the end of 5 years. The company requires a minimum pretax return of 11% on all investment projects. (Ignore income taxes.)

Click here to view Exhibit 13B 1 andExhibit 13B 2 to determine the appropriate discount factor(s) using tables.

Required:

Determine the net present value of the project. (Negative amount should be indicated by a minus sign. Round discount factor(s) to 3 decimal places, intermediate and final answers to the nearest dollar amount. Omit the “$” sign in your response.)

Net present value

$

liberty co 446878

Aug 29, 2021 | Uncategorized

On January 1, 2004, Liberty Co entered into a 12 year lease on building. The lease contract requires (1) annual ( prepaid) rental payment of $26,400 each January 1 throughout the life of the lease and (2) for the leasee to pay all the additions and improvements to the leased property. On January 1, 2011, Liberty decides to sublease the space of Moberly Co. for the remaining five years of the lease Moberly pays $30,000 to Liberty for the right to sublease agrees to assume the obligation to pay the $26,400 annual rent to the building owner beginning January 1, 2011. After taking possession of the leased space, Moberly pays for improving the office portions of the leased space at an $18,000 cost. The improvements are paid for by Moberly on January 3, 2011, and are estimated to have a useful life equal to the 13 years remaining in the life of the building.

1). Prepare journal entries for Moberly to record (a) its payment to Liberty for the right to sublease the building space, (b) its payment on the 2011 annual rent to the building owner, and (c) it payment for the office improvements.

2). Prepare Moberly’s year end adjusting entries required on December 31, 2011, to (a) amortize the $30,000 cost of the sublease, (b) amortize the office improvements and, (c) record rent expense.

intermediate accounting ii long term liabilities issuing bonds 446880

Aug 29, 2021 | Uncategorized

On January 1, 2011, Club Company issued 10% bonds, dated January 1, 2011, with face amount of $20 million. The bonds matue in 2020 (10 years). For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30 and December 31.

Requred:

1. Determine the price of teh bonds at January 1, 2011.

2. Prepare the journal entry to record the bond issuance by Club on January 1, 2011.

3. Prepare the journal entry to record interest on June 30, 2011, using the straight line method.

4. Prepare the journal entry to record interest on December 31, 2011 using the straight line method.

5. Prepare the journal entry to record interest on June 30, 2011, using the effective interest method.

6. Prepare the journal entry to record intrest on December 31, 2011, using the effective interest method.

accounting 446882

Aug 29, 2021 | Uncategorized

On January 1, 2012 the Accounts Receivable and the Allowance for Doubtful Accounts carried balances of $30,000 and $500, respectively. During the year the company reported $75,000 of credit sales. There were $550 of receivables written off as uncollectible in 2012. Cash collections of receivables amounted to $74,550. The company estimates that it will be unable to collect one percent (1%) of credit sales.

The entry to recognize the write off of an uncollectible account will:

increase total assets and total equity.
increase total assets and decrease total equity.
decrease total assets and total equity.
not affect total assets or total equity.

The entry required to recognize the uncollectible accounts expense for 2012 will:

increase total assets and retained earnings.
decrease total assets and retained earnings.
decrease total assets and increase net income.
increase total assets and decrease net income.

The net realizable value of receivables appearing on the December 31, 2012 balance sheet will amount to:

$29,200.
$30,450.
$29,750.
$24,300.

accounting npv 446890

Aug 29, 2021 | Uncategorized

On January 2, Fred Critchfield paid $18,000 for 900 shares of the common stock of Acme Company. Mr. Critchfield received an $0.80 per share dividend on the stock at the end of each year for four years. At the end of four years, he sold the stock for $22,500. Mr. Critchfield has a goal of earning a minimum return of 12% on all of his investments. (Ignore income taxes.)

Click here to view Exhibit 13B 1 andExhibit 13B 2, to determine the appropriate discount factor(s) using tables.

Required:

a.	Determine the net present value. (Negative amount should be indicated by a minus sign. Round discount factor(s) to 3 decimal places, intermediate and final answers to the nearest dollar amount. Omit the “$” sign in your response.)

Net present value

$

b.

Did Mr. Critchfield earn a 12% return on the stock?

	Yes
	No

accounting help 446895

Aug 29, 2021 | Uncategorized

In January 2011, Keona Co. pays $2,800,000 for a tract of land with two buildings on it. It plans to demolish Building 1 and build a new store in its place. Building 2 will be a company office; it is appraised at $840,000, with a useful life of 20 years and an $85,000 salvage value. A lighted parking lot near Building 1 has improvements (Land Improvements 1) valued at $270,000 that are expected to last another 9 years with no salvage value. Without the buildings and improvements, the tract of land is valued at $1,890,000. The company also incurs the following additional costs:

Cost to demolish Building 1	$	347,400
Cost of additional land grading		193,400
Cost to construct new building (Building 3), having a useful life of 25 years and a $400,000 salvage value		2,222,000
Cost of new land improvements (Land Improvements 2) near Building 2 having a 20 year useful life and no salvage value		173,000

Allocate the costs incurred by Keona to the appropriate columns and total each column. (Leave no cells blank be certain to enter “0” wherever required. Omit the “$” sign in your response.)

	Land	Building 2	Building 3	Land improvements 1	Land improvements 2
Purchase price	$	$	$	$	$
Demolition
Land grading
New building
New improvements

Totals	$	$	$	$	$

Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1, 2011. (Omit the “$” sign in your response.)

Date	General Journal	Debit	Credit
Jan. 1

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Prepare a single journal entry to record all the incurred costs assuming they are paid in cash on January 1, 2011. (Omit the “$” sign in your response.)

Date	General Journal	Debit	Credit
Jan. 1

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managerial accounting 446898

Aug 29, 2021 | Uncategorized

Janus Corporation has in stock 45,700 kilograms of material L that it bought five years ago for $10.10 per kilogram. This raw material was purchased to use in a product line that has been discontinued. Material L can be sold as is for scrap for $3.63 per kilogram. An alternative would be to use material L in one of the company’s current products, E99D, which currently requires 2 kilograms of a raw material that is available for $10.45 per kilogram. Material L can be modified at a cost of $1.02 per kilogram so that it can be used as a substitute for this material in the production of product E99D. However, after modification, 3 kilograms of material L is required for every unit of product E99D that is produced. Janus Corporation has now received a request from a company that could use material L in its production process. Assuming that Janus Corporation could use all of its stock of material L to make product E99D or the company could sell all of its stock of the material at the current scrap price of $3.63 per kilogram, what is the minimum acceptable selling price of material L to the company that could use material L in its own production process? (Do not round your intermediate calculations.)

jefferson company has two divisions jefferson bottles and jefferson juice jefferson 446900

Aug 29, 2021 | Uncategorized

Jefferson Company has two divisions: Jefferson Bottles and Jefferson Juice. Jefferson Bottles makes glass containers, which it sells to Jefferson Juice and other companies. Jefferson Bottles has a capacity of 10 million bottles a year. Jefferson Juice currently has a capacity of 3 million bottles of juice per year. Jefferson Bottles has a fixed cost of $100,000 per year and a variable cost of $0.01/bottle. Jefferson Bottles can currently sell all of its output at $0.03/bottle.

Required:

a. What should Jefferson Bottles charge Jefferson Juice for bottles so that both divisions will make appropriate decentralized planning decisions?

b. If Jefferson Bottles can only sell 5 million bottles to outside buyers, what should Jefferson Bottles charge Jefferson Juice for bottles so that both divisions will make appropriate decentralized planning decisions?

financial accounting question 446904

Aug 29, 2021 | Uncategorized

Jepson Electronic Center began July with 90 units of merchandise inventory that cost $70 each. During July, the store made the following purchases:

July 3: 20 units @ $75 each

July 12: 40 units @ $78 each

July 18: 60 units @ $84 each

Jepson uses the periodic inventory system, and the physical count at July 31 indicates that 98 units of inventory are on hand.

1. Determine the ending merchandise inventory and cost of goods sold amounts for the July financial statements using FIFO, LIFO, and weighted average inventory costing methods.

2. Sales revenue for July totaled $27000. Compute Jepson’s gross profit for July using each method.

3. Which method will result in the lowest income taxes for Jepson? Why? Which method will result in the highest income taxes for Jepson? Why?

help please 446922

Aug 29, 2021 | Uncategorized

Journalize the following merchandise transactions:

A.

Sold merchandise on account, $17,300 with terms 2/10, net 30. The cost of the merchandise sold was $12,600.

B.

Received payment less the discount.

Journal

Date	Description	Post Ref	Debit	Credit

sos 446923

Aug 29, 2021 | Uncategorized

Journalize the following transactions assuming a perpetual inventory system.:

May 5	Purchased merchandise from Archie Co., $6,000, terms FOB shipping point, 2/10, n/30.
	Prepaid freight costs of $100 were added to the invoice.
May 12	Issued a debit memo to Archie Co., for $2,500 of merchandise returned from purchase on May 5th.
May 14	Paid Archie Co. for invoice of May 5, less debit memo of May 12 and discount.

Journal

Date	Description	Post Ref	Debit	Credit

help 446924

Aug 29, 2021 | Uncategorized

Journalize the following transactions assuming the perpetual inventory system:

July 3	Sold merchandise on account $3,750. The cost of the merchandise sold was $2,000.
July 5	Issued credit memo for $1,050 for merchandise returned from sale on July 3rd.
	The cost of the merchandise returned was $610.
July 12	Received check for the amount due for sale on July 3rd less return on July 5th.
July 17	Sold merchandise for $7,000 plus 6% sales tax to cash customers. The cost of the merchandise sold was $3,830.

Journal

Date	Description	Post Ref	Debit	Credit

kalox inc manufactures 446932

Aug 29, 2021 | Uncategorized

Kalox, Inc., manufactures an antacid product that passes through two departments. Data for May for the first department follow:

	Gallons	Materials		Labor		Overhead
Work in process, May 1	76,000	$	68,400	$	30,200	$	41,900
Gallons started in process	719,000
Gallons transferred out	740,000
Work in process, May 31	55,000
Cost added during May		$	904,725	$	372,370	$	517,225

The beginning work in process inventory was 90% complete with respect to materials and 75% complete with respect to labor and overhead. The ending work in process inventory was 70% complete with respect to materials and 10% complete with respect to labor and overhead.

Assume that the company uses the weighted average method of accounting for units and costs.

1.	Compute the equivalent units for May%u2019s activity for the first department.

	Materials	Labor	Overhead
Equivalent units of production (Gallons)

2.	Determine the costs per equivalent unit for May. (Round your answers to 2 decimal places.)

	Materials	Labor	Overhead
Cost per equivalent unit	$	$	$

knarles and barkley final paper case study 446950

Aug 29, 2021 | Uncategorized

Knarles and Barkley are father and son respectively. Barkley is seventeen years old. They operate a facilities maintenance company that regularly does business in the District of Columbia, Maryland and Virginia. The company is based in Maryland. They have a number of contracts with building owners where they have agreed to provide building maintenance to both residential and commercial buildings within the three jurisdictions already mentioned. They receive a monthly payment of $2,000 to $4,000 depending upon the size of the building. They bill the owners for any equipment of a substantial nature that has to be replaced. Because of Knarles’ long term relationships with building owners, these contracts that were once in writing are generally renewed without a new written agreement. Often Knarles and Barkley will replace outdated and broken equipment such as water heaters and boilers that are part of a building’s heating system. Further, as part of maintenance they regularly wash windows, remove snow and do touch up painting as required.

accounting 446848

Aug 29, 2021 | Uncategorized

Im having an issue with this problem.

On January 8, the end of the first weekly pay period of the year, Royal Company’s payroll register showed that its employees earned $27,760 of office salaries and $60,840 of sales salaries. Withholdings from the employees’ salaries include FICA Social Security taxes at the rate of 6.20%, FICA Medicare taxes at the rate of 1.45%, $13,060 of federal income taxes, $1,450 of medical insurance deductions, and $780 of union dues. No employee earned more than $7,000 in this first period.

Required:
1.1	Calculate FICA Social Security taxes payable and FICA Medicare taxes payable by the employees of Royal Company. (Round your answers to 2 decimal places. Omit the “$” sign in your response.)


FICA%u2014Social sec. taxes payable	$
FICA%u2014Medicare taxes payable	$

1.2

Prepare the journal entry to record Royal Company’s January 8 (employee) payroll expenses and liabilities. (Round your answers to 2 decimal places. Omit the “$” sign in your response.)

Date	General Journal	Debit	Credit
Jan. 8	(Click to select) Office salaries expense Employee fed. inc. taxes payable FICA Medicare taxes payable Employee medical insurance payable FICA Social sec. taxes payable Sales salaries expense Salaries payable Employee union dues payable
	(Click to select) Employee fed. inc. taxes payable Employee union dues payable Employee medical insurance payable Sales salaries expense FICA Social sec. taxes payable Office salaries expense Salaries payable FICA Medicare taxes payable
	(Click to select) Employee fed. inc. taxes payable Employee medical insurance payable Salaries payable FICA Medicare taxes payable Office salaries expense FICA Social sec. taxes payable Employee union dues payable Sales salaries expense
	(Click to select) Salaries payable FICA Social sec. taxes payable FICA Medicare taxes payable Employee union dues payable Sales salaries expense Office salaries expense Employee fed. inc. taxes payable Employee medical insurance payable
	(Click to select) FICA Medicare taxes payable Office salaries expense Employee medical insurance payable Employee union dues payable Salaries payable FICA Social sec. taxes payable Sales salaries expense Employee fed. inc. taxes payable
	(Click to select) Sales salaries expense Employee fed. inc. taxes payable Employee medical insurance payable FICA Medicare taxes payable Employee union dues payable Salaries payable FICA Social sec. taxes payable Office salaries expense
	(Click to select) FICA Medicare taxes payable Employee fed. inc. taxes payable Employee medical insurance payable Office salaries expense Salaries payable Sales salaries expense FICA Social sec. taxes payable Employee union dues payable
	(Click to select) Sales salaries expense FICA Medicare taxes payable Employee union dues payable Employee medical insurance payable Office salaries expense FICA Social sec. taxes payable Salaries payable Employee fed. inc. taxes payable

2.

Prepare the journal entry to record Royal’s (employer) payroll taxes resulting from the January 8 payroll. Royal’s merit rating reduces its state unemployment tax rate to 2% of the first $7,000 paid each employee. The federal unemployment tax rate is 0.8%. (Round your answers to 2 decimal places. Omit the “$” sign in your response.)

Date	General Journal	Debit	Credit
Jan. 8	(Click to select) Office salaries expense Salaries payable Federal unemployment taxes payable Payroll taxes expense State unemployment taxes payable FICA Social sec. taxes payable Sales salaries expense FICA Medicare taxes payable
	(Click to select) State unemployment taxes payable Payroll taxes expense Office salaries expense Salaries payable FICA Social sec. taxes payable Federal unemployment taxes payable Sales salaries expense FICA Medicare taxes payable
	(Click to select) Sales salaries expense State unemployment taxes payable Office salaries expense Federal unemployment taxes payable FICA Medicare taxes payable Payroll taxes expense FICA Social sec. taxes payable Salaries payable
	(Click to select) State unemployment taxes payable Salaries payable Payroll taxes expense Sales salaries expense Office salaries expense Federal unemployment taxes payable FICA Medicare taxes payable FICA Social sec. taxes payable
	(Click to select) FICA Social sec. taxes payable Salaries payable Sales salaries expense FICA Medicare taxes payable Office salaries expense Federal unemployment taxes payable Payroll taxes expense State unemployment taxes payable

accounting 446850

Aug 29, 2021 | Uncategorized

Im having problems with these 2 questions.

Chen Company completed the following transactions and events involving its delivery trucks.

*2010*
Jan.	1	Paid $20,515 cash plus $1,785 in sales tax for a new delivery truck estimated to have a five year life and a $2,000 salvage value. Delivery truck costs are recorded in the Trucks account.
Dec.	31	Recorded annual straight line depreciation on the truck.

*2011*
Dec.	31	Due to new information obtained earlier in the year, the truck%u2019s estimated useful life was changed from five to four years, and the estimated salvage value was increased to $2,700. Recorded annual straight line depreciation on the truck.

*2012*
Dec.	31	Recorded annual straight line depreciation on the truck.
Dec.	31	Sold the truck for $5,400 cash.

Required:

Prepare journal entries to record these transactions and events in the given order. (Round your intermediate calculations and final answers to the nearest dollar amount. Omit the “$” sign in your response.)

Date

General Journal

Debit

Credit

Jan. 1, 2010

(Click to select) Trucks Loss on disposal of trucks Sales Cash Depreciation expense trucks Accounts receivable Accumulated depreciation trucks Accounts payable

(Click to select) Depreciation expense trucks Accounts receivable Accumulated depreciation trucks Accounts payable Cash Trucks Sales Loss on disposal of trucks

Dec. 31, 2010

(Click to select) Accumulated depreciation trucks Trucks Depreciation expense trucks Accounts payable Cash Sales Loss on disposal of trucks Accounts receivable

(Click to select) Trucks Sales Accumulated depreciation trucks Depreciation expense trucks Loss on disposal of trucks Accounts payable Cash Accounts receivable

Dec. 31, 2011

(Click to select) Accumulated depreciation trucks Depreciation expense trucks Cash Accounts payable Accounts receivable Trucks Loss on disposal of trucks Sales

(Click to select) Cash Trucks Accumulated depreciation trucks Accounts receivable Loss on disposal of trucks Depreciation expense trucks Accounts payable Sales

Dec. 31, 2012

(Click to select) Accounts receivable Cash Accounts payable Accumulated depreciation trucks Sales Depreciation expense trucks Loss on disposal of trucks Trucks

(Click to select) Depreciation expense trucks Accounts receivable Cash Accumulated depreciation trucks Trucks Loss on disposal of trucks Accounts payable Sales

Dec. 31, 2012

(Click to select) Accounts receivable Loss on disposal of trucks Cash Accounts payable Sales Trucks Depreciation expense trucks Accumulated depreciation trucks

(Click to select) Accumulated depreciation trucks Cash Accounts receivable Depreciation expense trucks Loss on disposal of trucks Sales Trucks Accounts payable

(Click to select) Trucks Accumulated depreciation trucks Depreciation expense trucks Accounts receivable Sales Accounts payable Loss on disposal of trucks Cash

(Click to select) Accounts payable Accounts receivable Loss on disposal of trucks Depreciation expense trucks Trucks Accumulated depreciation trucks Cash Sales

On January 8, the end of the first weekly pay period of the year, Royal Company’s payroll register showed that its employees earned $27,760 of office salaries and $60,840 of sales salaries. Withholdings from the employees’ salaries include FICA Social Security taxes at the rate of 6.20%, FICA Medicare taxes at the rate of 1.45%, $13,060 of federal income taxes, $1,450 of medical insurance deductions, and $780 of union dues. No employee earned more than $7,000 in this first period.

Required:
1.1	Calculate FICA Social Security taxes payable and FICA Medicare taxes payable by the employees of Royal Company. (Round your answers to 2 decimal places. Omit the “$” sign in your response.)


FICA%u2014Social sec. taxes payable	$
FICA%u2014Medicare taxes payable	$

1.2

Prepare the journal entry to record Royal Company’s January 8 (employee) payroll expenses and liabilities. (Round your answers to 2 decimal places. Omit the “$” sign in your response.)

Date	General Journal	Debit	Credit
Jan. 8	(Click to select) Sales salaries expense Employee medical insurance payable Employee union dues payable Office salaries expense Salaries payable FICA Medicare taxes payable FICA Social sec. taxes payable Employee fed. inc. taxes payable
	(Click to select) Employee medical insurance payable Employee fed. inc. taxes payable FICA Social sec. taxes payable Office salaries expense Sales salaries expense Employee union dues payable Salaries payable FICA Medicare taxes payable
	(Click to select) Employee union dues payable Salaries payable Sales salaries expense FICA Medicare taxes payable Employee fed. inc. taxes payable Employee medical insurance payable FICA Social sec. taxes payable Office salaries expense
	(Click to select) Salaries payable Employee union dues payable FICA Medicare taxes payable Employee fed. inc. taxes payable Employee medical insurance payable FICA Social sec. taxes payable Sales salaries expense Office salaries expense
	(Click to select) Employee union dues payable Office salaries expense FICA Medicare taxes payable Employee fed. inc. taxes payable Salaries payable Employee medical insurance payable FICA Social sec. taxes payable Sales salaries expense
	(Click to select) Salaries payable Employee fed. inc. taxes payable FICA Medicare taxes payable Employee union dues payable Sales salaries expense FICA Social sec. taxes payable Employee medical insurance payable Office salaries expense
	(Click to select) FICA Social sec. taxes payable Office salaries expense Employee medical insurance payable Employee union dues payable Salaries payable Sales salaries expense FICA Medicare taxes payable Employee fed. inc. taxes payable
	(Click to select) Office salaries expense Employee medical insurance payable FICA Medicare taxes payable FICA Social sec. taxes payable Employee union dues payable Sales salaries expense Salaries payable Employee fed. inc. taxes payable

2.

Prepare the journal entry to record Royal’s (employer) payroll taxes resulting from the January 8 payroll. Royal’s merit rating reduces its state unemployment tax rate to 2% of the first $7,000 paid each employee. The federal unemployment tax rate is 0.8%. (Round your answers to 2 decimal places. Omit the “$” sign in your response.)

Date	General Journal	Debit	Credit
Jan. 8	(Click to select) Salaries payable FICA Social sec. taxes payable FICA Medicare taxes payable Sales salaries expense Federal unemployment taxes payable State unemployment taxes payable Payroll taxes expense Office salaries expense
	(Click to select) Salaries payable FICA Social sec. taxes payable Office salaries expense Federal unemployment taxes payable State unemployment taxes payable FICA Medicare taxes payable Sales salaries expense Payroll taxes expense
	(Click to select) FICA Social sec. taxes payable Federal unemployment taxes payable Office salaries expense Salaries payable Sales salaries expense State unemployment taxes payable Payroll taxes expense FICA Medicare taxes payable
	(Click to select) Salaries payable Payroll taxes expense FICA Social sec. taxes payable Office salaries expense State unemployment taxes payable FICA Medicare taxes payable Federal unemployment taxes payable Sales salaries expense
	(Click to select) Sales salaries expense State unemployment taxes payable Salaries payable Payroll taxes expense FICA Medicare taxes payable Office salaries expense Federal unemployment taxes payable FICA Social sec. taxes payable

Aug 29, 2021 | Uncategorized

Pylonic Mfg. produces concrete garden border sections. All material is added at the beginning of processing. Production and cost information for May 2010 are as follows:

WA EUP

Direct material …………160,000 sections

Direct labor ……………152,000 sections

Overhead ……………..150,000 sections

FIFO EUP

Direct material ………….120,000 sections

Direct labor ……………..124,000 sections

Overhead ……………….132,000 sections

Beginning WIP Inventory costs

Direct material …………$19,600

Direct labor …………… 6,320

Overhead ……………… 10,020

Current period costs

Direct material …………$54,000

Direct labor ……………. 34,720

Overhead ……………… 84,480

a. What is the total cost to account for?

b. Using weighted average process costing, what is the cost per equivalent unit for each cost component?

c. Using FIFO process costing, what is the cost per equivalent unit for each cost component?

d. How many units were in beginning inventory and at what percentage of completion was each cost component?

refer to the data in e17 19 brooks accountant found an 282528

Aug 29, 2021 | Uncategorized

Refer to the data in E17 19. Brooks’ accountant found an error in her 2012 cost records. Depreciation on manufacturing property, plant, and equipment was actually $550,000, not the $600,000 she originally reported. Unadjusted balances at the end of 2012 include:

Finished goods inventory . . . . . . . $ 131,000

Cost of goods sold . . . . . . . . . . . . . . 580,000

Data from E 17 19

Manufacturing overhead costs . . . . . . . . $ 840,000

Direct labor costs . . . . . . . . . . . . . . . . . . 1,550,000

Machine hours . . . . . . . . . . . . . . . . . . 70,000 hours

At the end of 2012, the company had actually incurred:

Direct labor cost . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,160,000

Depreciation on manufacturing property,

plant, and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . 600,000

Property taxes on plant . . . . . . . . . . . . . . . . . . . . . . . . . 40,000

Sales salaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,500

Delivery drivers’ wages . . . . . . . . . . . . . . . . . . . . . . . . 23,500

Plant janitor’s wages . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,000

Machine hours . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67,000 hour

Requirements

1. Use a T account to determine whether manufacturing overhead is under allocated or over allocated, and by how much.

2. Prepare the journal entry to close out the under allocated or over allocated manufacturing overhead.

3. What is the adjusted ending balance of Cost of goods sold?

schrager manufacturing company has two production departments c 282587

Aug 29, 2021 | Uncategorized

Schrager Manufacturing Company has two production departments: Cutting and Assembly. July 1 inventories are Raw Materials $4,200, Work in Process—Cutting $2,900, Work in Process—Assembly $10,600, and Finished Goods $31,000. During July, the following transactions occurred.

1. Purchased $62,500 of raw materials on account.

2. Incurred $60,000 of factory labor. (Credit Wages Payable.)

3. Incurred $70,000 of manufacturing overhead; $40,000 was paid and the remainder is unpaid.

4. Requisitioned materials for Cutting $15,700 and Assembly $8,900.

5. Used factory labor for Cutting $33,000 and Assembly $27,000.

6. Applied overhead at the rate of $18 per machine hour. Machine hours were Cutting 1,680 and Assembly 1,720.

7. Transferred goods costing $67,600 from the Cutting Department to the Assembly Department.

8. Transferred goods costing $134,900 from Assembly to Finished Goods.

9. Sold goods costing $150,000 for $200,000 on account.

Instructions

Journalize the transactions. (Omit explanations.)

selected cost data for antique print co are as follows 282592

Aug 29, 2021 | Uncategorized

Selected cost data for Antique Print, Co., are as follows:

Estimated manufacturing overhead cost for the year . . . . . $ 115,000

Estimated direct labor cost for the year . . . . . . . . . . . . . . . . . . 71,875

Actual manufacturing overhead cost for the year . . . . . . . . . 119,000

Actual direct labor cost for the year . . . . . . . . . . . . . . . . . . . . . 73,000

Requirements

1. Compute the predetermined manufacturing overhead rate per direct labor dollar.

2. Prepare the journal entry to allocate overhead cost for the year.

3. Use a T account to determine the amount of under allocated or over allocated manufacturing overhead.

4. Prepare the journal entry to close the balance of the Manufacturing overhead account.

spring fresh produces premium bottled water spring fresh purcha 282602

Aug 29, 2021 | Uncategorized

Spring Fresh produces premium bottled water. Spring Fresh purchases artesian water, stores the water in large tanks, and then runs the water through two processes: filtration and bottling.

During February, the filtration process incurred the following costs in processing 150,000 liters:

Wages of workers operating the filtration equipment . . . . . . $ 25,950

Manufacturing overhead allocated to filtration . . . . . . . . . . 20,050

Water . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000

Spring Fresh had no beginning Work in process inventory in the Filtration Department in February.

Requirements

1. Compute the February conversion costs in the Filtration Department.

2. The Filtration Department completely processed 150,000 liters in February.

What was the filtration cost per liter?

springtime paints makes quality paint in one production departme 282603

Aug 29, 2021 | Uncategorized

Springtime Paints makes quality paint in one production department. Production begins with the blending of various chemicals, which are added at the beginning of the process, and ends with the canning of the paint. Canning occurs when the mixture reaches the 90 percent stage of completion. The gallon cans are then transferred to the Shipping Department for crating and shipment. Labor and overhead are added continuously throughout the process. Factory overhead is applied at the rate of $3 per direct labor hour.

Prior to May, when a change in the process was implemented, work in process inventories were insignificant. The change in process enables more production but results in large amounts of work in process. The company has always used the weighted average method to determine equivalent production and unit costs. Now production management is considering changing from the weighted average method to the first in, first out method.

The following data relate to actual production during May:

Work in process inventory, May 1

Direct material—chemicals ………………………………$45,100

Direct labor ($10 per hour) ……………………………….. 5,250

Factory overhead …………………………………………. 1,550

Costs for May

Direct material—chemicals …………………………… $228,900

Direct material—cans …………………………………….. 7,000

Direct labor ($10 per hour) ……………………………… 35,000

Factory overhead ………………………………………… 11,000

Units for May (Gallons)

Work in process inventory, May 1 (25% complete) ……………… 4,000

Sent to Shipping Department ……………………………………. 20,000

Started in May …………………………………………………… 21,000

Work in process inventory, May 31 (80% complete) ……………. 5,000

a. Prepare a cost of production report for May using the WA method.

b. Prepare a cost of production report for May using the FIFO method.

c. Discuss the advantages and disadvantages of using the WA method versus the FIFO method, and explain under what circumstances each method should be used.

steiner corporation manufactures water skis through two processe 282605

Aug 29, 2021 | Uncategorized

Steiner Corporation manufactures water skis through two processes: Molding and Packaging. In the Molding Department, fiberglass is heated and shaped into the form of a ski. In the Packaging Department, the skis are placed in cartons and sent to the finished goods warehouse. Materials are entered at the beginning of both processes. Labor and manufacturing overhead are incurred uniformly throughout each process. Production and cost data for the Molding Department for January 2012 are presented below.

Production Data January

Beginning work in process units …………….. –0–

Units started into production ………………… 50,000

Ending work in process units ………………… 2,500

Percent complete—ending inventory ………… 40%

Cost Data

Materials ………………………………………$510,000

Labor …………………………………………. 92,500

Overhead ……………………………………… 150,000

Total …………………………………………..$752,500

Instructions

(a) Compute the physical units of production.

(b) Determine the equivalent units of production for materials and conversion costs.

(c) Compute the unit costs of production.

(d) Determine the costs to be assigned to the units transferred out and in process.

(e) Prepare a production cost report for the Molding Department for the month of January.

Aug 29, 2021 | Uncategorized

You are to calculate the following ratios from the information that has been provided to you for Bella Confectionery Company Ltd and complete a ratio analysis (4 marks)

You are then also required to choose a company listed on the ASX in the similar industry and complete a competitor analysis. (4 marks)
Discuss the likelihood of failure of Bella Confectionery. (2 marks)

PART A CONTINUED

		BELLA CONFECTIONERY		YOUR CHOSEN ASX COMP
		20X0	20X9
Ratios

Current Ratio	Current assets
	Current Liabilities


Debt to equity	Debt
	Equity


Profit before tax/sales	Profit before tax
	Sales


Gross margin	Gross profit
	Sales


Inventory turnover	Cost of goods sold
	Average inventory

PART B – 10 MARKS

1. Discuss the potential Audit and Engagement Risk involved for the auditor of Bella Confectionery. (5 marks)

2. Discuss the Inherent Risk associated with Bella Confectionery Company . (5 marks)

Attachments:

the following data appeared in the accounting records of royale 282663

Aug 29, 2021 | Uncategorized

The following data appeared in the accounting records of Royale Manufacturing Company, which uses an average cost production system:

Started in process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,000 units

Finished and transferred . . . . . . . . . . . . . . . . . . . . . . . . 10,500 units

Work in process, end of month . . . . . . . 1,500 units (2/5 completed)

Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $36,000

Labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $44,400

Factory overhead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $22,200

Case 1—All materials are added at the beginning of the process, and labor and factory overhead are added evenly throughout the process.

Case 2—One half of the materials are added at the start of the manufacturing process, and the balance of the materials is added when the units are one half completed. Labor and factory overhead are applied evenly during the process.

Make the following computations for each case:

a. Unit cost of materials, labor, and factory overhead for the month.

b. Cost of the units finished during the month.

c. Cost of the units in process at the end of the month.

the ledger of molindo company has the following work in 282671

Aug 29, 2021 | Uncategorized

The ledger of Molindo Company has the following work in process account.

?

Production records show that there were 400 units in the beginning inventory, 30% complete, 1,100 units started, and 1,200 units transferred out. The beginning work in process had materials cost of $2,040 and conversion costs of $1,550.The units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process.

Instructions

(a) How many units are in process at May 31?

(b) What is the unit materials cost for May?

(c) What is the unit conversion cost for May?

(d) What is the total cost of units transferred out in May?

(e) What is the cost of the May 31inventory?

the polishing department of burgoa manufacturing company has the 282688

Aug 29, 2021 | Uncategorized

The Polishing Department of Burgoa Manufacturing Company has the following production and manufacturing cost data for September. Materials are entered at the beginning of the process.

Production: Beginning inventory 1,600 units that are 100% complete as to materials and 30% complete as to conversion costs; units started during the period are 18,400; ending inventory of 5,000 units 10% complete as to conversion costs.

Manufacturing costs: Beginning inventory costs, comprised of $20,000 of materials and $43,180 of conversion costs; materials costs added in Polishing during the month, $177,200; labor and overhead applied in Polishing during the month, $102,680 and $257,140, respectively.

Instructions

(a) Compute the equivalent units of production for materials and conversion costs for the month of September.

(b) Compute the unit costs for materials and conversion costs for the month.

(c) Determine the costs to be assigned to the units transferred out and in process.

the smelting department of polzin company has the following prod 282718

Aug 29, 2021 | Uncategorized

The Smelting Department of Polzin Company has the following production and cost data for September.

Production: Beginning work in process 2,000 units that are 100% complete as to materials and 20% complete as to conversion costs; units started and finished 9,000 units; and ending work in process 1,000 units that are 100% complete as to materials and 40% complete as to conversion costs.

Manufacturing costs: Work in process, September 1, $15,200; materials added $60,000; labor and overhead $132,000.

Polzin uses the FIFO method to compute equivalent units.

Instructions

(a) Compute the equivalent units of production for

(1) Materials and

(2) Conversion costs for the month of September.

(b) Compute the unit costs for the month.

(c) Determine the costs to be assigned to the units transferred out and in process.

gardenia company 446714

Aug 29, 2021 | Uncategorized

Gardenia Company has the following projected account balances for June 30, 20X9:

Accounts payable	$ 60,000	Sales	$ 800,000
Accounts receivable	$ 100,000	Capital stock	$ 400,000
Depreciation, factory	$ 36,000	Retained earnings	?
Inventories (5/31 & 6/30)	$ 180,000	Cash	$ 56,000
Direct materials used	$ 200,000	Equipment, net	$ 240,000
Office salaries	$ 80,000	Buildings, net	$ 400,000
Insurance, factory	$ 4,000	Utilities, factory	$ 16,000
Plant wages	$ 140,000	Selling expenses	$ 50,000
Bonds payable	$ 160,000	Maintenance, factory	$ 28,000

Prepare a budgeted income statement AND a budgeted balance sheet as of June 30, 20X9.

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i need help with this accounting worksheet 446716

Aug 29, 2021 | Uncategorized

Garnett Printing Corp. uses a job order cost system. The following data summarize the operations related to the first quarter’s production.

Materials purchased on account $192,000, and factory wages incurred $87,300.

Materials requisitioned and factory labor used by job:

Job Number	Materials	Factory Labor
A20	$ 35,240	$18,000
A21	42,920	22,000
A22	36,100	15,000
A23	39,270	25,000
General factory use	4,470	7,300
	$158,000	$87,300

Manufacturing overhead costs incurred on account $39,500.
Depreciation on machinery and equipment $14,550.
Manufacturing overhead rate is 80% of direct labor cost.
Jobs completed during the quarter: A20, A21, and A23.

Instructions

Prepare entries to record the operations summarized above. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)

	Account/Description	Debit	Credit
1.

	(To record materials purchased.)


	(To record factory wages incurred.)
2.


	(To record material requisitioned.)



	(To record factory labor used.)
3.

4.

5.

6.

Complete the schedule showing the individual cost elements and total cost for each job in item 6.

Job	Direct Material	Direct Labor	Manufacturing Overhead	Total
A20	$	$	$	$
A21
A23
				$

accounting general phone apps gpa is evaluating a proposal to internally develop 446719

Aug 29, 2021 | Uncategorized

General Phone Apps (GPA) is evaluating a proposal to internally develop a software capability that is intended to enhance their application (app) development process by automating testing and simplifying product conversion among different operating systems. Since it will be cloud based, it also will facilitate group development projects and enable employees to more easily work from different locations. This is not a product to be sold, but rather it will assist internal development of their app software, so it is depreciable.

The development and conversion process is estimated to take one year in year 0) and cost $1,000,000. This investment includes all programming training, loading of existing products and testing the resulting conversion. An internal project over the past year has been completed that evaluated the feasibility and created a macro design of the proposed system (sunk costs).

The new software is expected to both increase sales and decrease development costs. The sales for the present year (year 0) are $2.,000,000 and without this new software capability would likely grow 10% annually. The new software is forecast to enable a sales growth of 33.33% per year, instead of only 10%. The annual cost of fulfilling orders and customer support (COGS) is forecast at 50% of revenue and expected to continue at this level.

The change in Marketing and Sales expense related to this project would be an increase of $75,000 annually and unchanged over the projects time horizon. The annual cost of the cloud service will be $150,000 in year 1 and increase 10% annually after that.

A three year time horizon is to be used for the evaluation, although the software is expected to be used much longer. The GPA tax rate is 25%.. Three year MACRS depreciation has been chosen for the projects $1 million development and implementation cost.

Submit a spreadsheet containing an Income Statement for this proposal. Use the standard Income statement format that includes totals for COGS, SG&A, EBIT and Net Earnings.

No recommended decision is expected in this assignment as this requires a proposal cash flow statement that is next week%u2019s topic.

cost accounting show working will offer full points 446720

Aug 29, 2021 | Uncategorized

The Geurtz Company uses standard costing. The company makes and sells a single product called a Roff. The following data are for the month of August:

%u2022	Actual cost of direct material purchased and used: $115,010
%u2022	Material price variance: $6,510 unfavorable
%u2022	Total materials variance: $28,510 unfavorable
%u2022	Standard cost per pound of material: $5
%u2022	Standard cost per direct labor hour: $8
%u2022	Actual direct labor hours: 6,320 hours
%u2022	Labor efficiency variance: $4,800 favorable
%u2022	Standard number of direct labor hours per unit of Roff: 2 hours
%u2022	Total labor variance: $1,008 unfavorable

The actual material cost per pound was: (Round your final answer to 2 decimal places.)

	$3.00
	$5.00
	$5.30
	$5.63

the geurtz company uses standard costing the company makes and sells a single produc 446721

Aug 29, 2021 | Uncategorized

The Geurtz Company uses standard costing. The company makes and sells a single product called a Roff. The following data are for the month of August:

%u2022	Actual cost of direct material purchased and used: $108,160
%u2022	Material price variance: $4,160 unfavorable
%u2022	Total materials variance: $27,160 unfavorable
%u2022	Standard cost per pound of material: $5
%u2022	Standard cost per direct labor hour: $6
%u2022	Actual direct labor hours: 7,600 hours
%u2022	Labor efficiency variance: $3,000 favorable
%u2022	Standard number of direct labor hours per unit of Roff: 2 hours
%u2022	Total labor variance: $2,320 unfavorable

The total number of units of Roff produced during August was what?

Without solution, no rating

need help 446725

Aug 29, 2021 | Uncategorized

The Gilster Company, a machine tooling firm, has several plants. One plant, located in St. Falls, Minnesota, uses a job order costing system for its batch production processes. The St. Falls plant has two departments through which most jobs pass. Plantwide overhead, which includes the plant manager%u2019s salary, accounting personnel, cafeteria, and human resources, is budgeted at $300,000. During the past year, actual plantwide overhead was $284,000. Each department%u2019s overhead consists primarily of depreciation and other machine related expenses. Selected budgeted and actual data from the St. Falls plant for the past year are as follows:

	Department A		Department B
Budgeted department overhead
(excludes plantwide overhead)	$	141,100	$	616,000
Actual department overhead		162,000		636,000
Expected activity:
Direct labor hours		32,000		20,000
Machine hours		17,000		44,000
Actual activity:
Direct labor hours		33,500		19,400
Machine hours		17,800		46,000

For the coming year, the accountants at St. Falls are in the process of helping the sales force create bids for several jobs. Projected data pertaining to job no. 110 are as follows:


Direct materials	$	23,500
Direct labor cost:
Department A (2,600 hr)		39,000
Department B (1,500 hr)		11,600
Machine hours projected:
Department A		140
Department B		1,200
Units produced		8,000

eBook Links (6)references

Section Break

Comprehensive Problem 5

Comprehensive Problem 5 Part a

a.1

Assume the St. Falls plant uses a single plantwide overhead rate to assign all overhead (plantwide and department) costs to jobs. Find the overhead rate by using expected direct labor hours. (Round your answer to 2 decimal places. Omit the “$” sign in your response.)

Overhead rate

$ per direct labor hour

a.2

Determine the projected amount of total manufacturing costs per unit for the units in job no. 110. (Round your answer to 2 decimal places. Omit the “$” sign in your response.)

Manufacturing costs for Job 110

$ per unit

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Worksheet

Comprehensive Problem 5 Part a

Difficulty: Hard

2. value:

25.00 points

Comprehensive Problem 5 Part b

b.1

Calculate plantwide overhead rate using Machine Hours on projected manufacturing costs for job no. 110. (Round your answer to 2 decimal places. Omit the “$” sign in your response.)

Plantwide overhead rate

$ per machine hour

b.2

Calculate two separate department overhead rates using Machine Hours on projected manufacturing costs for job no. 110. (Round your answers to 1 decimal place.Omit the “$” sign in your response.)


Overhead rate%u2014Department A	$ per machine hour
Overhead rate%u2014Department B	$ per machine hour

b.3

Recalculate the projected manufacturing costs for job no. 110 using three separate rates: one rate for plantwide overhead and two separate department overhead rates, all based on machine hours. (Round your intermediate calculations and final answer to 2 decimal places. Omit the “$” sign in your response.)

Total cost

$ per unit

check my workreferences

Worksheet

Comprehensive Problem 5 Part b

Difficulty: Hard

3. value:

25.00 points

Comprehensive Problem 5 Part c

c.1

The sales policy at St. Falls dictates that job bids be calculated by adding 27 percent to total manufacturing costs. What would be the bid for job no. 110 using the overhead rate from part a ? (Round your intermediate calculations to 2 decimal places and final answer to the nearest dollar amount. Omit the “$” sign in your response.)

Bid price

$

c.2

The sales policy at St. Falls dictates that job bids be calculated by adding 27 percent to total manufacturing costs. What would be the bid for job no. 110 using the overhead rate from part b ? (Round your intermediate calculations to 2 decimal places and final answer to the nearest dollar amount. Omit the “$” sign in your response.)

Bid price

$

c.3

Which of the overhead allocation methods would you recommend ?

	Overhead rate by direct labor hours
	Overhead rate by machine Hours

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Worksheet

Comprehensive Problem 5 Part c

Difficulty: Hard

4. value:

25.00 points

Comprehensive Problem 5 Part d

d.	Using the allocation rates in part b, compute the under or overapplied overhead for the St. Falls plant for the year. (Round your intermediate calculations to 2 decimal places and final answer to the nearest dollar amount. Omit the “$” sign in your response.)

(Click to select) Underapplied Overapplied

$

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Worksheet

Comprehensive Problem 5 Part d

Difficulty: Hard

5. value:

10.00 points

Comprehensive Problem 5 Part e

e.

A St. Falls subcontractor has offered to produce the parts for job no. 110 for a price of $13 per unit. Assume the St. Falls sales force has already committed to the bid price based on the calculations in part b. Should St. Falls buy the $13 per unit part from the subcontractor or continue to make the parts for job no. 110 itself?

	Subcontractor
	Continue to make the part

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Multiple Choice

Comprehensive Problem 5 Part e

Difficulty: Hard

6. value:

15.00 points

Comprehensive Problem 5 Part f

f.	Would your response to part e change if the St. Falls plant could use the facilities necessary to produce parts for job no. 110 for another job that could earn an incremental profit of $27,000?

	Yes
	No

gilster co help pt 1 446727

Aug 29, 2021 | Uncategorized

The Gilster Company, a machine tooling firm, has several plants. One plant, located in St. Falls, Minnesota, uses a job order costing system for its batch production processes. The St. Falls plant has two departments through which most jobs pass. Plantwide overhead, which includes the plant manager%u2019s salary, accounting personnel, cafeteria, and human resources, is budgeted at $300,000. During the past year, actual plantwide overhead was $284,000. Each department%u2019s overhead consists primarily of depreciation and other machine related expenses. Selected budgeted and actual data from the St. Falls plant for the past year are as follows:

	Department A		Department B
Budgeted department overhead
(excludes plantwide overhead)	$	141,100	$	616,000
Actual department overhead		162,000		636,000
Expected activity:
Direct labor hours		32,000		20,000
Machine hours		17,000		44,000
Actual activity:
Direct labor hours		33,500		19,400
Machine hours		17,800		46,000

For the coming year, the accountants at St. Falls are in the process of helping the sales force create bids for several jobs. Projected data pertaining to job no. 110 are as follows:


Direct materials	$	23,500
Direct labor cost:
Department A (2,600 hr)		39,000
Department B (1,500 hr)		11,600
Machine hours projected:
Department A		140
Department B		1,200
Units produced		8,000

eBook Links (6)references

Section Break

Comprehensive Problem 5

1. value:

25.00 points

Comprehensive Problem 5 Part a

a.1

Assume the St. Falls plant uses a single plantwide overhead rate to assign all overhead (plantwide and department) costs to jobs. Find the overhead rate by using expected direct labor hours. (Round your answer to 2 decimal places. Omit the “$” sign in your response.)

Overhead rate

$ per direct labor hour

a.2

Determine the projected amount of total manufacturing costs per unit for the units in job no. 110. (Round your answer to 2 decimal places. Omit the “$” sign in your response.)

Manufacturing costs for Job 110

$ per unit

check my workreferences

Worksheet

Comprehensive Problem 5 Part a

Difficulty: Hard

shelly company 446740

Aug 29, 2021 | Uncategorized

Given the following year end balances, prepare a classified balance sheet for Shelly Company dated December 31, 20X8.

Interest Expense $ 2,000

Beginning Retained Earnings 13,100

Depreciation Expense 5,200

Cash 26,900

Accounts Payable 3,300

Rent Expense 7,200

Accumulated Depreciation 13,500

Wage Expense 59,200

Prepaid Rent 1,400

Paid in Capital 9,000

Accounts Receivable 13,600

Wages Payable 3,200

Equipment 63,000

Sales 249,600

Inventory 14,400

Long term Note Payable 20,000

Income tax Expense 24,500

Dividends Declared 21,000

Cost of Goods Sold 94,300

Dividends Payable 21,000

Detailed MBA answer

managerial accounting 446741

Aug 29, 2021 | Uncategorized

Glenda Company uses a flexible budget system for manufacturing overhead based on direct labor hours. For 2011 the monthly master overhead budget for the Packaging Department based on 25,000 direct labor hours was as follows: Variable costs (Based on 25,000 DL Hrs/month) Fixed Costs (Monthly Amounts

Direct Labor	$ 30,000	Supervision	$ 5,000
Supplies and lubricants	12,500	Depreciation	2,000
Maintenance	17,500	Property taxes	1,500
Utilities	10,000	Insurance	1,000
	$ 70,000		$ 9,500

During July, 24,000 direct labor hours were worked. The company actually incurred the following variable costs in July: indirect labor, $30,200; supplies and lubricants, $11,600; maintenance, $17,500; and utilities, $9,200. Actual fixed overhead costs were unchanged, except for Supervision, which increased to $7,000. REQUIRED: [A] Prepare a budget report that compares the monthly planned (static) budget for manufacturing overhead and with the monthly flexible budget at the actual level of activity. Show the activity variances that result. What is your overall interpretation of the variances? [B] Prepare a budget report that compares the flexible budget with the actual results. Define and explain the variances that you are reporting.

help me please with this question 446756

Aug 29, 2021 | Uncategorized

Hakik Enterprises offers rug cleaning services to business clients. Below is the trial balance for Hakik Enterprises, which was prepared on the end of period spreadsheet (work sheet) for the year ended July 31, 2010.

Hakik Enterprises End of Period Spreadsheet (Work Sheet) For the Year Ended July 31, 2010
	Trial Balance		Adjustments		Adjusted Trial Balance
	Debit	Credit	Debit	Credit	Debit	Credit
Cash	36
Prepaid Insurance	12
Fees Receivable	56
Supplies	12
Equipment	60
Accum. Depreciation		12
Unearned Revenue		20
Accounts Payable		32
Wages Payable
Ramon Hakik, Capital		84
Ramon Hakik, Drawings	4
Service Revenue		80
Advertising Expense	28
Wage Expense	20
Insurance Expense
Supplies Expense
Depreciation Expense
Totals	228	228

REQUIRED: Enter the adjustment data in the work sheet for the transactions shown below and place the balances in the Adjusted Trial Balance columns.

a) The equipment is estimated to last for 5 years with no salvage value. The asset will be depreciated evenly over its useful life. Record one month%u2019s depreciation.
b) Accrued Wages $2.
c) Unused supplies on hand $8.
d) Of the unearned revenue, 75% has been earned.
e) Unexpired insurance remaining at the end of the month, $9.

fifo lifo weighted average cost 446759

Aug 29, 2021 | Uncategorized

Hamilton Company uses a periodic inventory system. At the end of the annual accounting period, December 31, 2012, the accounting records provided the following information for product 1:

Units

Unit Cost

Inventory, December 31, 2011

1,860

$8

For the year 2012:

Purchase, March 21

6,100

7

Purchase, August 1

4,040

5

Inventory, December 31, 2012

2,880

Required:

Compute ending inventory and cost of goods sold under FIFO, LIFO, and average cost inventory costing methods. (Round intermediate calculations to 4 decimal places and round your final answers to the nearest dollar amount. Cost of goods sold and ending inventory may not add up to cost of goods available for sale due to rounding. Omit the “$” sign in your response.)

	FIFO	LIFO	Average Cost
Ending inventory	$	$	$
Cost of goods sold	$	$	$

indicate which items should be added to and which items should not be added to the d 446760

Aug 29, 2021 | Uncategorized

Hampton Co. took a physical count of its inventory on December 31. In addition, it had to decide whether or not the following items should be added to this count.

Indicate which items should be added to (answer: yes) and which items should not be added to (answer: no) the December 31 inventory count.

a. Merchandise on hand had been sold earlier in the year but had been returned by customers for various warranty repairs.

b. Hampton Co. sent merchandise on a consignment basis on December 31 just prior to the physical count.

c. On December 22, Hampton Co. ordered merchandise on FOB destination terms. The merchandise was shipped by the supplier on December 30 but had not been received by December 31.

d. On December 27, Hampton Co. ordered merchandise on FOB shipping point terms. The merchandise was shipped on December 29 but had not been received by December 31.

e. Merchandise sold FOB shipping point on December 31 was picked up by the freight company just before closing on December 31.

f. Merchandise shipped to a customer FOB destination was picked up by the freight company on December 28 but had not arrived at its destination as of December 31.

plz help 446782

Aug 29, 2021 | Uncategorized

Heritage furniture Co. uses a standard cost system. One of thecompany%u2019s most popular products is an oak entertainmentcenter that looks like an old icebox but houses a television,stereo, or other electronic components. The per unit standard costsof the entertainment center, assuming a %u201Cnormal%u201D volumeof 1,000 units per month, are as follows:

Direct materials, 100 board feel of wood at $1.30 perfoot%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026$130.00

Direct labor, 5 hours at $8.00 perhour%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u202640.00

Manufacturing overhead (applied at $22 per unit)

Fixed ($15,000 / 1,000 units of normalproduction)%u2026%u2026%u2026%u2026%u2026%u2026$15,000

Variable%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u20267.00 22.00

Total standard untilcost%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026 $192.00

During July, 800 entertainment centers were scheduled andproduced at the following actual unit costs:

Direct materials, 110 feet at $1.20 perfoot%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026..$132.00

Direct labor, 5?2 hours at $7.80 perhour%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026.42.90

Manufacturing overhead, $18,480 / 800units%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026…23.10

Total actual unitcost%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026%u2026.$198.00

Instructions:

Compute the following cost variances for the of July:

1. Materials price variance

2. Materials quantity variance

3. Labor rate variance

4. Labor efficiency variance

5. Overhead spending variance

6. Volume variance

Prepare journal entries to assign manufacturing costs to thework in process Inventory account and to record cost variances forJuly. Use separate entries for (1) direct materials, (2) directlabor, and (3) overhead costs.
Comment on any significant problem or areas of cost savingsrevealed by your computation of cost variances. Also comment on anypossible causal relationships between significant favorable andunfavorable cost variances.

chapter 9 standard costs 8 446783

Aug 29, 2021 | Uncategorized

Highland Company produces a lightweight backpack that is popular with college students. Standard variable costs relating to a single backpack are given below:

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost
Direct materials	?	$7.8 per yard	$?
Direct labor	?	?	?
Variable manufacturing overhead	?	$3.9 per direct labor hour	?
Total standard cost			$?

Overhead is applied to production on the basis of direct labor hours. During March, 1,200 backpacks were manufactured and sold. Selected information relating to the month’s production is given below:

	Materials Used	Direct Labor	Variable Manufacturing Overhead
Total standard cost allowed*	$28,080	$16,116	$7,956
Actual costs incurred	$26,696	?	$7,356
Direct materials price variance	?
Direct materials quantity variance	$1,248 U
Direct labor rate variance		?
Direct labor efficiency variance
Variable overhead rate variance			?
Variable overhead efficiency variance			?

*For the month’s production.

The following additional information is available for March’s production:


Actual direct labor hours	2,140
Standard overhead rate per direct labor hour	$3.9
Standard price of one yard of materials	$7.8
Difference between standard and actual cost per backpack produced during March	$.15	F

Requirement 1:

What is the standard cost of a single backpack? (Round your answer to 2 decimal places. Omit the “$” sign in your response.)

Standard cost

$

Requirement 2:

What was the actual cost per backpack produced during March? (Round your answer to 2 decimal places. Omit the “$” sign in your response.)

Actual cost

$

Requirement 3:

How many yards of material are required at standard per backpack? (Round your answer to 2 decimal places.)

Material

yards per backpack

Requirement 4:

What was the direct materials price variance for March? (Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Input all amounts as positive values. Omit the “$” sign in your response.)

Price variance

$

(Click to select) None U F

Requirement 5:

What is the standard direct labor rate per hour? (Round your answer to 2 decimal places. Omit the “$” sign in your response.)

Standard rate

$

per DLH

Requirement 6:

What was the direct labor rate variance for March? The direct labor efficiency variance? (Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Input all amounts as positive values. Omit the “$” sign in your response.)

Labor rate variance	$	(Click to select) None F U
Labor efficiency variance	$	(Click to select) U F None

Requirement 7:

What was the variable overhead rate variance for March? The variable overhead efficiency variance?(Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Input all amounts as positive values. Omit the “$” sign in your response.)

Rate variance	$	(Click to select) F U None
Efficiency variance	$	(Click to select) U F None

Requirement 8:

Prepare a standard cost card for one backpack. (Round your answers to 2 decimal places. Omit the “$” sign in your response.)

	Standard Quantity or Hours	Standard Price or Rate	Standard Cost
Direct materials	yards	7.8 per yard	$
Direct labor	hours	$ per hour
Variable manufacturing overhead	hours	3.9 per hour
Total standard cost			$

party time 446784

Aug 29, 2021 | Uncategorized

Bill Hildebrand and Melissa Nordhaus opened Party Time T Shirts to sell T shirts for parties at their college. The company completed the first year of operations, and the owners are generally pleased with operating results, as shown by the following income statement:

Party time t shirts

Income statement

Net sales revenue. $350,000

Cost of goods sold. 210, 000

Gross margin. 140, 000

Operating expense

Selling expense. 40,000

General expense. 25,000

Net income. 75,000

Hildebrand and Nordhaus are considering how to expand the business. They each propose a way to increase profits to $100,000 during 2012.

a. Hildebrand believes they should advertise more heavily. He believes additional advertising costing $20,000 will increase net sales by 30% and leave general expense unchanged.

b. Nordhaus proposes selling higher margin merchandise, such as party dresses. An importer can supply a minimum of 1,000 dresses for $40 each; Party Time can mark

these dresses up 100% and sell them for $80. Nordhaus realizes they will have to advertise the new merchandise, and this advertising will cost $5,000. Party Time can expect to

sell only 80% of these dresses during the coming year.

Requirement

R1. Help Hildebrand and Nordhaus determine which plan to pursue. Prepare a single step income statement for 2012 to show the expected net income under each plan.

need requirements 3 4 please show how you got to the answer 446792

Aug 29, 2021 | Uncategorized

HulaHug Corp., which manufactures hula hoops, currently has two product lines, the Roundabout and the Sassafras. HulaHug has total overhead of $132,575.

HulaHug has identified the following information about its overhead activity pools and the two product lines.

Activity Pools	Cost Driver	Cost Assigned to Pool			Quantity/Amount Consumed Roundabout Line	Quantity/Amount Consumed Sassafras Line
Material handling	Number of moves		$	20,655	550 moves	470 moves
Quality control	Number of inspections		$	78,720	6,300 inspections	3,300 inspections
Machine maintenance	Number of machine hours		$	33,200	16,000 machine hours	24,000 machine hours

Requirement 1:

Suppose HulaHug used a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount. Omit the “$” sign in your response.)

	Overhead assigned
Roundabout Model	$
Sassafras Model	$

Total	$

Requirement 2:

Calculate the activity proportions for each cost pool in HulaHug’s ABC system. (Round your answers to 2 decimal places. Omit the “$” signs in your response.)

	Activity proportions
	Roundabout Model	Sassafras Model
Material Handling
Quality Control
Maintenance

Requirement 3:

Calculate the amount of overhead that HulaHug will assign to the Roundabout line if it uses an ABC system. (Round your intermediate calculations and final answers to 2 decimal places. Omit the “$” signs in your response.)

Roundabout Model:
Material Handling	$
Quality Control	$
Maintenance	$

Total Overhead Assigned	$

Requirement 4:

Determine the amount of overhead HulaHug will assign to the Sassafras line if it uses an ABC system. (Round your intermediate calculations and final answers to 2 decimal places. Omit the “$” signs in your response.)

Sassafras Model:
Material Handling	$
Quality Control	$
Maintenance	$

Total Overhead Assigned	$

accounting chapter question 446799

Aug 29, 2021 | Uncategorized

Part I.

East Valley Manufacturing had gross profit of $450,000 and selling & administrative expenses of $275,000 last year. The company also began last year with $1,800,000 of operating assets and ended the year with $1,500,000 of operating assets.

Calculate Return on Investment for East Valley Manufacturing.

Part II.

Saguaro Boat Engines had sales of $6,400,000, cost of goods sold of $4.8 million, and selling & administrative expenses of $650,000 for its most recent year of operation. The company%u2019s tax rate is 40%. The total Capital Employed by the firm is $5,000,000. The following information is also available.

Debt/Stock Int Rate

Long Term Debt $1,000,000 12%

Common Stock $3,000,000 8%

1.In good order and form, prepare an income statement for Saguaro.

2.Calculate EVA.

accounting help multi step income statement 446806

Aug 29, 2021 | Uncategorized

I am having trouble figuring this out. Any help would be appreciated.

ZZZ Company sells beds and linens. There are 100,000 shares of capital stock outstanding. The annual fiscal period ends on December 31. The following condensed trial balance was taken from the general ledger on December 31, 2010:

Debit Credit

Cash $ 42,000

Accounts receivable 18,000

Inventory 65,000

Operational assets 50,000

Accumulated depreciation $ 21,000

Liabilities 30,000

Common stock 90,000

Retained earnings, January 1, 2009 11,600

Sales revenue 182,000

Sales returns and allowances 7,000

Cost of goods sold 98,000

Selling expense 17,000

Administrative expense 18,000

Interest expense 2,000

Extraordinary loss 8,000

Income tax expense (30% tax rate) 9,600

Totals $334,600 $334,600

Required:Prepare a multiple step income statement. Hint: the extraordinary item needs to be shown below the income from operations and shown net of taxes. You will have to search outside of your textbook to find an example.

Connect Inc. uses the perpetual inventory system. On May 1, 2010 merchandise was sold on credit at an invoice price of $1,000, terms 3/10, n/30. The merchandise cost $600. Give the journal entries to record the following.

To record the sales:

Assumption 1: To record collection on May 7, 2010:

Assumption 2: To record collection on May 31, 2010:

journal entries for enterpise fund accounting 430 446824

Aug 29, 2021 | Uncategorized

I need help on this journal entry:

On December 31, 2014, prior to preparing closing entries, the Solid Waste Disposal Fund was charged for materials and supplies expense in the amount of $12,000 that had erroneously been charged as an expenditure of the General Fund (see transaction 15 of the General Fund in Chapter 4 of this cumulative problem). You should credit Due to Other Funds.

This is Transaction 15 from Chapter 4:

It was discovered that goods in the amount of $12,000 had been recorded in error as an expenditure against the General Government appropriation of the General Fund. These goods should have been charged to the Solid Waste Disposal Fund, an enterprise fund and a business type activity at the government wide level. This item had also been charged as an expense of the General Government function at the government wide level. An interfund invoice was prepared to reduce expenditures of the General Fund for the $12,000 and recognize an interfund receivable. This item will be recognized later in Chapter 7 of this case as an expense of the Solid Waste Disposal Fund.

Required: Record this reimbursement transaction in the General Fund and governmental activities journals, debiting Due from Other Funds in the General Fund and Internal Receivables from Business type Activities at the government wide level. Do not make any entries in the Solid Waste Disposal Fund at this time. (Note: Select %u201CGoods Received%u201D in the [Transaction Description] box in the Detail Journal).

managerial accounting 446841

Aug 29, 2021 | Uncategorized

Iaukea Company makes two products from a common input. Joint processing costs up to the split off point total $48,700 a year. The company allocates these costs to the joint products on the basis of their total sales values at the split off point. Each product may be sold at the split off point or processed further. Data concerning these products appear below:

	Product X		Product Y		Total
Allocated joint processing costs	$	18,900	$	29,800	$	48,700
Sales value at split off point	$	25,900	$	37,850	$	63,750
Costs of further processing	$	23,400	$	17,700	$	41,100
Sales value after further processing	$	49,000	$	56,700	$	105,700

Required:
a.	What is the net monetary advantage (disadvantage) of processing Product X beyond the split off point?(Input the amount as a positive value. Omit the “$” sign in your response.)

Net (Click to select) disadvantage advantage

$

b.	What is the net monetary advantage (disadvantage) of processing Product Y beyond the split off point?(Input the amount as a positive value. Omit the “$” sign in your response.)

Net (Click to select) disadvantage advantage

$

c.	What is the minimum amount the company should accept for Product X if it is to be sold at the split off point? (Omit the “$” sign in your response.)

Minimum acceptable amount

$

d.	What is the minimum amount the company should accept for Product Y if it is to be sold at the split off point? (Omit the “$” sign in your response.)

Minimum acceptable amount

$

references

accounting 202 446526

Aug 29, 2021 | Uncategorized

(*) on february 15, Seacroft buys 7000 shares of Kebo common stock at 28.53 dollar per share plus a brokerage fee of $400. The stock is classified as available for sale securities. On march 15, Kebo declares a dividend of $1.15 per share payable to stockholders of record on April 15. Seacroft received the dividend on april 15 and ultimately sells half of the Kebo stock on November 17 of the current year of $29.30 per share less a brokerage fee of $250. The journal entry record the sale of the stock on Nov 17 is:

a) debit cash $102550, Credit long term investment afs $100055, Credit gain on sale of long term investment $2495

b) Debit cash $102300, Credit Long term investment trading $99855,Credit gain on sale of long term investment $2645

c) Debit cash $102550, Credit long term investments trading $99855, credit gain on sale of long term investment $2645

d) Debit cash $102300, credit loong term investment ads $100055, credit gain on sale of long term investments $2245

e) Debit cash $102300, Credit long term investments afs $99855, gain on sale of long term investments $2445

(*) Seamark buys $360000 of Eider’s 10% six year bonds payable at par value on Sept 1. Interest payments are made semiannually on March 1 and sept 1. The journal entry to accrue interest earned at year end Dec 31 is?? (dont round your intermediate calculation)

a) Debit interest receivable $12000, Credit interest revenue $12000

b) Debit cash 12000, credit interest revenue 12000

c) debit interest revenue 12000, credit interest receivable 12000

d) debit interest receivable 18000, credit interest revenue 18000

e) debit cash 18000 credit interest revenue 18000

gannon co 446528

Aug 29, 2021 | Uncategorized

On February 19 of the current year, Rock Chalk Co. pays $4,450,000 for land estimated to contains 5 million tons of recoverable ore. It installs machinery costing $200,000 that has a 16 year life and no salvage value and is capable in mining the ore deposit in 12 years. The machinery is paid for on March 21, eleven days beofre mining operations begin. The company removes and sells 352,000 tons of ore during its first nien months of operation ending on December 31. Depreciation of the machinery is in proportion to the mine’s depletion as the machinery will be abandon after the ore is mined.

Prepare entries to record (a) the purchase of the land. (b) the cost and installation of the machinery. (c) the first nine months’ depletions assuming the land has a net salvage value of zero after the ore mined, and (d) the first nine months’ depreciation on the machinery.

Describe both the similarities and the differences in amortization, depletion, and depreciation.

federal income tax 446529

Aug 29, 2021 | Uncategorized

Federal taxation

BACKGROUND:

The taxpayers, George A. Warden (social security number 333 33 3330) and Mary S.

Warden (social security number 444 44 4440) file a joint return. Both are 50 years old,

have good eyesight, and live with their three children, Edward, John and Ruth, at 789 N.

Code Drive, Chicago, Illinois 60699, (312) 679 9999. Mr. Warden wants to contribute $3

of his income tax to the Presidential Election Campaign Fund. Mrs. Warden elects not to

contribute.

The Wardens%u2019 son, Edward, is a junior in college and he is 20 years old. He worked

during the summer and earned $4,000. Their other son, John, is a 17 year old high school

student. He earned $3,600 during the summer and worked part time during the remainder

of the year. Neither son had any additional income. Their daughter, Ruth, is eight years

old and an elementary school student. She had no earned or unearned income during the

year. In August, the Wardens paid $4,000 in tuition for their son, Edward, for the

academic period that started in September. Edward%u2019s social security number is 300 11

0001, John%u2019s social security number is 300 22 0002, and Ruth%u2019s social security number is

300 33 0003.

The Wardens claim Mrs. Warden%u2019s mother, Grace D. Taylor, as a dependent under a

multiple support agreement. The total support of Mrs. Taylor is $6,000, received from the

following three sources:

(1) $3,000 from Mary Warden,

(2) $1,000 from another daughter, Thelma Taylor, and

(3) $2,000 in social security benefits.

Mrs. Grace D. Taylor lived with the Wardens during all of 2012. Her social security

number is 400 44 0004. Thelma Taylor provides the Warden%u2019s with a written, signed

statement, that she will not claim her mother as a dependent in 2012. Thelma Taylor lives

at 1425 S. 62nd Street, Chicago, IL 60699, and her social security number is 500 55

0005.

The Wardens use Trish Ford, a professional tax preparer, to prepare their income tax

return. Trish Ford%u2019s PTIN is P98765432, and she works for E&Z Tax Preparation (EIN

#36 0987654), which is located in a nearby suburb of Middle America (telephone

number 1 312 555 1040). However, the Warden%u2019s do not authorize her to discuss their

return with the IRS.

INCOME AND EXPENSES GENERALLY

During 2012, Mrs. Warden was employed as a salesperson by a publishing company. Her

Form W 2 for 2012 reports the following:

Box 1. Wages, tips and other compensation $75,000

Box 2. Federal income tax withheld $4,950

Box 4. Social security tax withheld $4,650

Box 6. Medicare tax withheld $1,088

Box 17. State income tax $2,250

Mrs. Warden is not covered by her employer%u2019s retirement plan. In addition, Mr. Warden

is a self employed individual who does not maintain a Keogh or a SEP plan. Mrs.

Warden made a $1,500 contribution to a traditional IRA and a $2,000 contribution to a

Roth IRA in 2012. Mr. Warden decided against making a contribution to a traditional

IRA.

The Wardens received a $30 state income tax refund. They itemized in the prior year and

elected to take the state income tax as a deduction. The Wardens also received a $20

federal income tax refund.

Form 1040, Schedule A

The Wardens made federal estimated tax payments of $2,000 for 2012.

The Wardens incurred the following medical expenses during 2012:

%u2022 prescription drugs, $1,000;

%u2022 doctor bills, $3,550;

%u2022 hospital bills, $1,750;

%u2022 transportation, $100; and

%u2022 eyeglasses, $500.

In addition, Mr. Warden, who is self employed, paid $3,750 in premiums for health

insurance coverage for himself and his family.

The Wardens paid their 2011 real estate taxes of $1,810 due on July 1, 2012.

In addition, they sold their residence on September 13, 2012. They allowed the buyer a

credit equal to 70% of the estimated real estate taxes of $2,000 for 2012. The real estate

taxes on the new property they purchased on May 1, 2012, are not payable until 2013.

There was no taxable gain on the sale of their prior residence.

Mr. and Mrs. Warden paid $3,878 in deductible home mortgage interest to a bank. They

also paid $3,000 in points when they purchased their new home.

They paid the following personal interest in 2012:

%u2022 $600 to finance Mrs. Warden%u2019s car, and

%u2022 $400 in credit card interest.

The Wardens gave $1,500 in cash to various recognized charities; no individual gift was

$250 or more; all charities sent an acknowledgment of the contribution.

Form 2106

Mrs. Warden incurred employee business expenses in connection with her occupation as

salesperson for the publishing company. On January 3, 2012, she purchased a new car

that was used primarily for business reasons. The car cost $19,500, and she paid $500 in

sales tax. During 2012, the car was driven a total of 20,000 miles by Mrs. Warden. Of

those miles, 16,600 were business related. Mrs. Warden drove 1,250 miles while

commuting (five mile daily roundtrip commute), and 2,150 miles for personal purposes.

Mrs. Warden depreciates the car using a five year MACRS recovery period, the 200%

declining balance method, and the half year convention. However, it should be noted that

depreciation on the car is limited because of the %u201Clisted property%u201D rules. Mrs. Warden%u2019s

gasoline, oil and insurance expenses on the car amounted to $4,750. She paid $600 in

interest on the installment loan incurred to purchase the car. She also paid $50 for

business parking fees and $75 for a car rental while away from home. Mrs. Warden elects

to claim the actual automobile related expenses.

Assume the answers for Form 2106, Lines 18, 19, 20 and 21 are %u201CYes.%u201D

Mrs. Warden elected not to claim any Code Sec. 179 deduction or additional bonus

depreciation on the car in 2012.

Mrs. Warden incurred the following other business expenses:

%u2022 meals and entertainment, $1,500;

%u2022 airfare, $233;

%u2022 gifts to customers, $150; and

%u2022 business seminar, $60.

Mrs. Warden received $5,000 as a car expense reimbursement from her employer under a

plan that required her to account for the expenses. The $5,000 was not reported on her

Form W 2. Mrs. Warden was not reimbursed for her other business expenses.

The Wardens paid $500 for the preparation of their 2011 tax return (including $200 for

the preparation of Schedule C, Profit or Loss from Business for George Warden%u2019s

furniture business), $50 for the rental of a safe deposit box where they stored their

securities, and $350 for investment publications.

Form 1040, Schedule B

During 2012, the Wardens received $500 in interest from the Heartland National Bank

and $150 as nominees from the Third National Savings and Loan. They received $200 in

interest from tax exempt bonds issued by the state of Illinois.

The Warden%u2019s received the following qualified dividends: $400 from E&Z Tax

Preparation, Inc., $300 from Secure Money Market Fund, and $250 from Rapid Growth

Mutual Fund. They also received a $100 capital gain distribution from Rapid Growth. In

addition, the Warden%u2019s received $700 in nonqualified foreign corporation dividends from

Consolidated Tapioca, and paid foreign taxes of $10 to various countries in connection

with this investment. The responses to the questions on Part III of Schedule B are %u201CNo.%u201D

Form 1040, Schedule D

During 2012, the Wardens sold the following capital assets:

(1) On February 2, 100 shares of Ahab Inc. were sold for $1,000. They had been

purchased on November 12, 2010 for $2,500.

(2) On November 5, 200 shares of Pequod Inc. were sold for $5,000. They had

been purchased on January 5, 2011 for $2,000.

(3) On December 4, 100 shares of Squall Inc. were sold for $10,000. They had

been purchased on January 4, 2001 for $4,000.

(4) On December 10, 200 shares of Kismet Inc. were sold for $5,000. They had

been purchased on September 5, 2005 for $2,000.

(5) On December 15, a number of gold coins were sold for $2,000. The coins had

been purchased on October 15, 2004 for $3,000.

Form 1040, Schedule E

Mr. and Mrs. Warden own and rent a brick two flat apartment building located at 12

West 5th Ave., Chicago, Illinois 60626. The apartment building is not used for personal

purposes by either the Wardens or members of their family. Mr. Warden actively

participates in the operation of the building. The Wardens received rents of $12,000 in

2012. Their expenses are as follows:

cleaning and maintenance, $2,500;

mortgage interest, $4,000;

repairs, $750;

advertising, $500

insurance, $1,000 and

real estate taxes, $1,250.

The current depreciation figure, taken from the Wardens%u2019 work papers (not reproduced) is

$3,000.

Form 2441

During 2012, the Wardens%u2019 daughter, Ruth, attended two child care centers. They were:

Happy Day Care, 4210 W. Maple, Chicago, Illinois 60699, whose identification number

is 36 0987654; and Greenfields Day Care, 901 N. Ash, Chicago, Illinois 60699, whose

identification number is 36 1234567. The Wardens paid $3,720 to Happy Day Care and

$1,860 to Greenfields Day Care. The Wardens did not receive employer provided

dependent care benefits.

BUSINESS INCOME

Form 1040, Schedule C

Mr. Warden operated Interiors Unlimited, selling home furnishings at retail, as a sole

proprietor during the entire year. The business address is 45 Boswell Blvd., Villa Park,

Illinois 60181. His employer identification number is 36 3456789. The business code is

442200. In order to clearly show business income, Mr. Warden maintains an inventory at

cost and he uses the accrual method of accounting for his sales and purchases.

Total gross receipts of the business were $127,247 and returns and allowances amounted

to $1,500.

The business books showed the following information:

Inventory at beginning of year (valued at cost) . . . . . . $35,000

Merchandise purchased . . . . . . . . . . . . . . . . . . . . . . . . 70,000

Inventory at end of year . . . . . . . . . . . . . . . . . . . . . . . . 22,000

Truck expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 550

Other interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300

Rent (property) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,800

Repairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280

Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000

Wages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,541

Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,450

Utilities and telephone . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200

Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,240

Legal and accounting

(includes $200 of tax preparation fees) . . . . . . . . . . . . 400

Office expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125

Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,858

Travel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400

Meals and entertainment . . . . . . . . . . . . . . . . . . . . . . . . 1,040

Miscellaneous . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 330

FARM INCOME AND EXPENSES

Form 1040, Schedule F

Mr. Warden owned and operated a farm in Illinois. The Principal Agricultural Activity

Code for this farm is 112111, and the principal product raised is beef cattle. Mr. Warden

utilizes the cash basis to report farm income and expenses. His books and records show

the following information:

Farm income Amount

Livestock sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $29,500

Cooperative distributions ($30 nontaxable) . . . . . . . . . . . . 150

Farm expenses Amount

Livestock purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000

Depreciation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000

Feed purchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 750

Freight and Trucking. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250

Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400

Laborhired. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000

Other Interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100

Pasturerentals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300

Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 450

Veterinary fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500

Assume that Mr. Warden%u2019s basis in the livestock sold during 2012 was $19,500.

ASSIGNMENT:

You are to Prepare the Wardens%u2019 2012 Form 1040 Joint Individual Tax Return, including

Schedules A, B,, C, D, E, and F and Forms 2106, and any other form which you think is

appropriate.

fill in the missing amounts in each of the eight case situations below each case is 446533

Aug 29, 2021 | Uncategorized

FiFillll in the missing amounts in each of the eight case situations below. Each case is independent of the others.

a.	Assume that only one product is being sold in each of the four following case situations:(Input all amounts as positive values except losses which should be indicated by a minus sign.)

	Case #1	Case #2	Case #3	Case #4
Units sold	8,900		19,400	4,600

Sales	$ 249,200	$ 377,000	$	$ 156,400
Variable expenses	169,100		271,600

Contribution margin	$ 80,100	$ 232,000	$ 213,400	$ 73,600
Fixed expenses	80,000	175,000		81,000

Net operating income (Loss)	$	$ 57,000	$ 136,400	$ (7,400)

Contribution margin per unit	$	$ 16	$ 11	$

b.	Assume that more than one product is being sold in each of the four following case situations: (Input all amounts as positive values except losses which should be indicated by a minus sign.)

	Case #1	Case #2	Case #3	Case #4
Sales	$ 459,000	$ 203,000	$	$ 300,000
Variable expenses		136,010		96,000

Contribution margin	$ 160,650	$ 66,990	$ 544,440	$ 204,000
Fixed expenses		55,000	473,000

Net operating income (loss)	$ 49,650	$	$ 71,440	$ (20,000)

Contribution margin ratio (percent)	35 %	%	78 %	%

mr eddy attended a convention in nassau or veteran go ers in e ruary 19 1 he also at 446569

Aug 29, 2021 | Uncategorized

1) Mr. Eddy attended a convention in Nassau or veteran go ers in e.ruary 19 1. He also attended a CA convention in Toronto in September 19 1. The costs of the conventions were $2,600 and $900 respectively. 2) The entertainment expenses include the cost of meals and the cost of tickets to attend sporting events with clients. 3) The insurance expense of $1,200 includes a $450 premium paid for insurance against fire and theft in respect of the office and its contents and a $750 premium on a life insurance policy. 4) Accounts receivable of $6,500, which were written off in previous years, were recovered during the year. 5) In December 19 0, Mr. Eddy declared a $5,000 bonus for one of his employees. This bonus was paid April 30, 19 1. 6) As his income was almost the same as last year, Mr. Eddy made the following contributions during the period: RRSP $ 7,500 RESP 3,000

7) Inventory supplies did not change. 8) The UCC of the office equipment as at December 31, 19 0 is $25,000. 9) The UCC of leasehold improvements as at December 31, 19 0 is $5,000. Mr. Eddy received $1.000 from the new lessee. The leasehold improvements had

Attachments:

238052 1 COMM….pdf

eps 446572

Aug 29, 2021 | Uncategorized

Financial information for Semester Company for three recent years is as follows:

	Fiscal Years Ended
	2011	2010	2009
Net income	$26,042	$22,162	$17,133
Preferred dividends	$709	$562	$402
Average number of common shares outstanding	4,900	4,800	3,900

a. Determine the earnings per share for fiscal years 2011, 2010, and 2009. Round to the nearest cent.

2011:	$ per share
2010:	$ per share
2009:	$ per share

variance analysis 446584

Aug 29, 2021 | Uncategorized

Four Flags is a retail department store. On January 1, 2012, Four Flags’ accountants used the following data to develop the master budget for Four Flags for 2012:

Cost	Fixed	Variable (per unit sold)
Cost of Goods Sold	$0	$5.60
Selling and Promotion Expense	$210,000	$0.80
Building Occupancy Expense	$190,000	$0.10
Buying Expense	$140,000	$0.30
Delivery Expense	$105,000	$0.05
Credit and Collection Expense	$78,000	$0.02

Expected unit sales in 2012 were 1,300,000, and 2012 total revenue was expected to be $13,000,000. Actual 2012 unit sales turned out to be 1,050,000, and total revenue was $10,500,000. Actual costs in 2012 were:

Cost of Goods Sold	$6,000,000
Selling and Promotion Expense	$1,000,000
Building Occupancy Expense	$320,000
Buying Expense	$590,000
Delivery Expense	$180,000
Credit and Collection Expense	$20,000

Required
Compute the flexible budget variances for the following two cost items (enter favorable variances as positive numbers and unfavorable variances as negative numbers):

*In this problem, you must create the flexible budget and flexible budget variances for two cost items.

1) Credit and Collection Expense?

2) Cost of Goods Sold ?

redo the standard cost card in a clearer more usable format by detailing the variabl 446597

Aug 29, 2021 | Uncategorized

Flandro Company uses a standard cost system and sets predetermined overhead rates on the basis of direct labor hours. The following data are taken from the company’s budget for the current year:


Denominator activity (direct labor hours)	12,500
Variable manufacturing overhead cost	$52,500
Fixed manufacturing overhead cost	$100,000

The standard cost card for the company’s only product is given below:


Direct materials, 2 yards at $2.80 per yard	$5.60
Direct labor, 2 hour at $11 per hour	22.00
Manufacturing overhead, 110.91% of direct labor cost	24.40
Standard cost per unit	$52.00

During the year, the company produced 5,400 units of product and incurred the following costs:


Materials purchased, 30,000 yards at $3.30 per yard	$99,000
Materials used in production (in yards)	21,000
Direct labor cost incurred, 14,000 hours at $8.7 per hour	$121,800
Variable manufacturing overhead cost incurred	$35,600
Fixed manufacturing overhead cost incurred	$35,000

Requirement 1:

Redo the standard cost card in a clearer, more usable format by detailing the variable and fixed overhead cost elements. (Round your answers to 2 decimal places. Omit the “$” sign in your response.)


Direct materials	$
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead cost
Standard cost per unit	$

Requirement 2:

Prepare an analysis of the variances for direct materials and direct labor for the year. (Input all amounts as positive values. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Omit the “$” sign in your response.)


Materials variances:
Price Variance	$	(Click to select) F U None
Quantity Variance	$	(Click to select) None U F
Labor variances:
Rate Variance	$	(Click to select) U F None
Efficiency Variance	$	(Click to select) None U F

Requirement 3:

Prepare an analysis of the variances for variable and fixed overhead for the year. (Input all amounts as positive values. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Omit the “$” sign in your response.)


Variable overhead variances:
Rate Variance	$	(Click to select) None U F
Efficiency Variance	$	(Click to select) U None F
Fixed manufacturing overhead variances:
Budget variance	$	(Click to select) F U None
Volume Variance	$	(Click to select) F None U

conway and lawrence form a partnership by combining the assets and liabilities of th 446601

Aug 29, 2021 | Uncategorized

Module 9 Assignment:

Conway and Lawrence form a partnership by combining the assets and liabilities of their respective sole proprietorships. The following are the assets and liabilities of each partner and their market values.

Conway

Lawrence

Asset

Book value

Market value

Asset

Book Value

Market value

Cash

$20,000

Cash

$10,000

Accounts receivable

$5,000

$3,000

Equipmnet

$50,000

$30,000

Note payable

$10,000

Accumulated Depreciation

$15,000

Inventory

$25,000

$28,000

Accounts Payable

$7,000

Requirements:

1

Journalize the formation of the partnership.

Journal

Accounts

Debit

Credit

Cash

20,000

Ar

3,000

inventory

28,000

NP

1,000

Capital

41,000

Half way through the first year of operations Conway and Lawrence admit Korman to the partnership. Korman buys a 1/2 share for $37,000 in cash.

2

Journalize Korman’s admission to the partnership.

Journal

Accounts

Debit

Credit

The net income for the first year of oprations was $50,000. After giving Conway a salary of $20,000, the rest of the net income is split evenly among the partners.

3

Prepare an income distribution worksheet.

Income Distribution

Net Income

$50,000

Conway

Korman

Lawrence

4

Journalize the closing of the income summary accounts to the capital accounts.

Journal

Accounts

Debit

Credit

After 5 years of operation Conway, Korma, and Lawrence decide to dissolve their partnership. The following are the account balances before liquidation begins:

Cash

127,000

The equipment is sold for $8,000

Equipment

20,000

Note Payable

6,000

Capital, Conway

65,000

Capital,Korman

40,000

Capital, Lawrence

36,000

5

Complete the liquidating worksheet.

Liquidation

Cash

Equipment

Note payable

Conway

Korman

Lawrence

6

Journalize each step of the closing.

Journal

Accounts

Debit

Credit

Attachments:

Copy-of-assig….xlsx

acct 380 446612

Aug 29, 2021 | Uncategorized

The following balance sheet for the Hubbard Corporation was prepared by the company:

Hubbard Corporation Balance Sheet At December 31, 2013
Assets
Buildings	$	762,000
Land		286,000
Cash		72,000
Accounts receivable (net)		144,000
Inventories		264,000
Machinery		292,000
Patent (net)		112,000
Investment in marketable equity securities		84,000

Total assets	$	2,016,000

Liabilities and shareholders’ equity
Accounts payable	$	227,000
Accumulated depreciation		267,000
Notes payable		524,000
Appreciation of inventories		92,000
Common stock, authorized and issued 112,000 shares of no par stock		448,000
Retained earnings		458,000

Total liabilities and shareholders’ equity	$	2,016,000

Additional information:

1.	The buildings, land, and machinery are all stated at cost except for a parcel of land that the company is holding for future sale. The land originally cost $62,000 but, due to a significant increase in market value, is listed at $144,000. The increase in the land account was credited to retained earnings.
2.	Marketable equity securities consist of stocks of other corporations and are recorded at cost, $32,000 of which will be sold in the coming year. The remainder will be held indefinitely.
3.	Notes payable are all long term. However, a $220,000 note requires an installment payment of $55,000 due in the coming year.
4.	Inventories are recorded at current resale value. The original cost of the inventories is $ What is the retained earnig for the balance sheet? 458,000 is not the answer, because I have tried that.

absorption costing 446636

Aug 29, 2021 | Uncategorized

The following data relate to Lobo Corporation for the year just ended:
Sales Revenue $750,000
Cost of Goods Sold:
Variable Portion $370,000
Fixed Portion $110,000
Variable Selling & Admin. Cost $50,000
Fixed Selling & Admin. Cost &75,000

Which of the following statements is correct?

A. Lobo’s variable costing income statement would reveal a gross margin of $270,000.

B. Lobo’s variable costing income statement would reveal a contribution margin of $330,000.

C. Lobo’s absorption costing income statement would reveal a contribution margin of $330,000.

D. Lobo’s absorption costing income statement would reveal a gross margin of $330,000.

E. Lobo’s absorption costing income statement would reveal a gross margin of $145,000.

journalize the following selected transactions completed during the current fiscal y 446649

Aug 29, 2021 | Uncategorized

Journalize the following selected transactions completed during the current fiscal year:

Jan. 3 The board of directors declared a stock split which reduced the par of common shares from $100 to $20. This action increased the number of outstanding shares to 400,000.

22 Declared a dividend of $1.75 per share on the outstanding shares of common stock.

Feb. 8 Paid the dividend declared on January 22.

Sep. 1 Declared a 5% stock dividend on the common stock outstanding the fair market value of the stock to be issued is $30).

Oct. 1 Issued the certificates for the common stock dividend declared on September 1

Attachments:

acct test.docx

standard costs 446653

Aug 29, 2021 | Uncategorized

[The following information applies to the questions displayed below.]

Danson Company is a chemical manufacturer that supplies various products to industrial users. The company plans to introduce a new chemical solution, called Nysap, for which it needs to develop a standard product cost. The following information is available on the production of Nysap:

a.	Nysap is made by combining a chemical compound (nyclyn) and a solution (salex), and boiling the mixture. A 20% loss in volume occurs for both the salex and the nyclyn during boiling. After boiling, the mixture consists of 16.6 liters of salex and 11 kilograms of nyclyn per 17 liter batch of Nysap.
b.	After the boiling process is complete, the solution is cooled slightly before 7 kilograms of protet are added per 17 liter batch of Nysap. The addition of the protet does not affect the total liquid volume. The resulting solution is then bottled in 17 liter containers.
c.	The finished product is highly unstable, and one 17 liter batch out of 5 is rejected at final inspection. Rejected batches have no commercial value and are thrown out.
d.	It takes a worker 30 minutes to process one 17 liter batch of Nysap. Employees work an 8 hour day, including 1 hour per day for rest breaks, and cleanup.

rev: 02 10 2011

1. value:

1.00 points

Requirement 1:

Determine the standard quantity for each of the raw materials needed to produce an acceptable 17 liter batch of Nysap. (Round the interim calculation to 2 decimal places and final answers rounded to 1 decimal place.)

	Standard quantity
Salex	liters
Nyclyn	kilograms
Protet	kilograms

rev: 02 10 2011 ask your instructor a questioncheck my workeBook Linkreferences

2. value:

1.00 points

Requirement 2:

Determine the standard labor time allowed to produce an acceptable 17 liter batch of Nysap. (Round your answer to 2 decimal places.)

Standard labor time

minutes

rev: 02 10 2011 ask your instructor a questioncheck my workeBook Linkreferences

3. value:

1.00 points

Requirement 3:

Assuming the following costs, prepare a standard cost card for direct materials and direct labor for one acceptable 17 liter batch of Nysap:


Salex	$3.5 per liter
Nyclyn	$2 per kilogram
Protet	$2 per kilogram
Direct labor cost	$12 per hour

Prepare a standard cost card for direct materials and direct labor for one acceptable 17 liter batch of Nysap.(Round your answers to 2 decimal places. Omit the “$” sign in your response.)

	Standard Quantity or Time		Standard Price or Rate	Standard Cost
Salex		liters	$ per liter	$
Nyclyn		kilograms	$ per kilogram
Protet		kilograms	$ per kilogram
Labor time		minutes	$ per hour
Total standard cost per acceptable batch				$

bank reconciliation 446656

Aug 29, 2021 | Uncategorized

The following information is available to reconcile Branch Company%u2019s book balance of cash with its bank statement cash balance as of July 31, 2013.

a.	On July 31, the company%u2019s Cash account has a $25,648 debit balance, but its July bank statement shows a $27,673 cash balance.
b.	Check No. 3031 for $1,400 and Check No. 3040 for $692 were outstanding on the June 30 bank reconciliation. Check No. 3040 is listed with the July canceled checks, but Check No. 3031 is not. Also, Check No. 3065 for $476 and Check No. 3069 for $2,168, both written in July, are not among the canceled checks on the July 31 statement.
c.	In comparing the canceled checks on the bank statement with the entries in the accounting records, it is found that Check No. 3056 for July rent was correctly written and drawn for $1,210 but was erroneously entered in the accounting records as $1,200.
d.	A credit memorandum enclosed with the July bank statement indicates the bank collected $8,000 cash on a non interest bearing note for Branch, deducted a $40 collection fee, and credited the remainder to its account. Branch had not recorded this event before receiving the statement.
e.	A debit memorandum for $805 lists a $795 NSF check plus a $10 NSF charge. The check had been received from a customer, Evan Shaw. Branch has not yet recorded this check as NSF.
f.	Enclosed with the July statement is a $12 debit memorandum for bank services. It has not yet been recorded because no previous notification had been received.
g.	Branch%u2019s July 31 daily cash receipts of $9,152 were placed in the bank%u2019s night depository on that date, but do not appear on the July 31 bank statement. Prepare the adjusting entry required, if any, related to the July 31 cash balance Prepare the adjusting entry required, if any, related to the July 31 cash balance. Prepare the adjusting entry required, if any, related to the outstanding checks. Prepare the adjusting entry required, if any, related to Check No. 3056. A credit memorandum enclosed with the July bank statement indicates the bank collected $8,000 cash on a non interest bearing note for Branch, deducted a $40 collection fee, and credited the remainder to its account. Branch had not recorded this event before receiving the statement. Prepare the adjusting entry required, if any. A debit memorandum for $805 lists a $795 NSF check plus a $10 NSF charge. The check had been received from a customer, Evan Shaw. Branch has not yet recorded this check as NSF. Prepare the adjusting entry required, if any. Enclosed with the July statement is a $12 debit memorandum for bank services. It has not yet been recorded because no previous notification had been received. Prepare the adjusting entry required, if any. Branch%u2019s July 31 daily cash receipts of $9,152 were placed in the bank%u2019s night depository on that date, but do not appear on the July 31 bank statement. Prepare the adjusting entry required, if any.

accounting help 446657

Aug 29, 2021 | Uncategorized

The following information is available regarding the total manufacturing overhead of Bursa Mfg. Co. for a recent four month period:

	Machine Hours	Manufacturing Overhead
Jan.	5,400	$	310,000
Feb.	3,200		224,000
Mar.	4,900		263,800
Apr.	2,800		180,000

a 1

Use the high low method to determine the variable element of manufacturing overhead costs per machine hour.

Manufacturing overhead cost

$

per machine hour

a 2

Use the high low method to determine the fixed element of monthly overhead cost.

Fixed element of manufacturing overhead

$

b.	Bursa expects machine hours in May to equal 5,300. Use the cost relationships determined in part a to forecast May’s manufacturing overhead costs.

Estimated manufacturing overhead

$

c.	Suppose Bursa had used the cost relationships determined in part a to estimate the total manufacturing overhead expected for the months of February and March. By what amounts would Bursa have over or underestimated these costs?

Amount over (under) estimated
February	$
March	$

accounting 446673

Aug 29, 2021 | Uncategorized

The following information was reported in a cash budget:

Beginning cash balance	$280,000
Cash payments	533,000
Cash receipts	370,000
Minimum cash balance desired	200,000

How much cash will the company have to borrow in order to meet its required needs? Answer

	a.	$83,000
	b.	$0
	c.	$163,000
	d.	$103,000

actg 475 446683

Aug 29, 2021 | Uncategorized

The following refers to units processed in Heath Printing’s binding department in June.

	Units of Product	Percent of Labor Added
Beginning goods in process	150,000	85	%
Goods started	310,000	100
Goods completed	340,000	100
Ending goods in process	120,000	25

Compute the total equivalent units of production with respect to labor for June using the weighted average inventory method.

Total equivalent units of production

net effect of transactions 446687

Aug 29, 2021 | Uncategorized

The following transactions apply to X Company:

Sold merchandise for cash		$2,119
Paid wages		3,377
Purchased new equipment for cash		8,948
Paid dividends		1,423
Bought supplies on account		4,310
Paid operating expenses		5,646
Issued stock to investors for cash		1,631
Repaid a bank loan		4,924
Disposed of old equipment for cash		6,456
Loaned money to another company		3,599
Recorded depreciation during the year		1,203

What is the net effect of these transactions in the Investing Section of the Statement of Cash Flows (assume that a positive number means a net inflow and a negative number means a net outflow)?

management accounting 446703

Aug 29, 2021 | Uncategorized

Franklin Glass Works uses a standard cost system in which manufacturing overhead is applied on the basis of standard direct labor hours. Each unit requires five standard hours of direct labor for completion. The denominator activity for the year was based on budgeted production of 170,000 units. Total overhead was budgeted at $2,250,000 for the year, and the fixed manufacturing overhead rate was $2.50 per direct labor hour. The actual data pertaining to the manufacturing overhead for the year are presented below:

Actual production	168,000	units
Actual direct labor hours	410,000	direct labor hours
Actual variable manufacturing overhead	$322,000
Actual fixed manufacturing overhead	$572,000

Franklin’s fixed manufacturing overhead volume variance for the year is:

$25,000 unfavorable

$8,500 favorable

$313,500 favorable

$47,500 unfavorable

Austin Wool Products purchases raw wool and processes it into yarn. The spindles of yarn can then be sold directly to stores or they can be used by Austin Wool Products to make afghans. Each afghan requires one spindle of yarn. Current cost and revenue data for the spindles of yarn and for the afghans are as follows:

Data for one spindle of yarn:
Selling price	$12
Variable production cost	$8
Fixed production cost (based on 4,600 spindles of yarn produced)	$2

Data for one afghan:
Selling price	$31
Production cost per spindle of yarn	$10
Variable production cost to process the yarn into an afghan	$9
Avoidable fixed production cost to process the yarn into an afghan (based on 4,600 afghans produced)	$5

Each month 4,600 spindles of yarn are produced that can either be sold outright or processed into afghans.

If Austin chooses to produce 4,600 afghans each month, the change in the monthly net operating income as compared to selling 4,600 spindles of yarn is:

$18,400 decrease

$18,400 increase

$23,000 decrease

$23,000 increase

Humes Corporation makes a range of products. The company’s predetermined overhead rate is $24 per direct labor hour, which was calculated using the following budgeted data:


Variable manufacturing overhead	$	84,000
Fixed manufacturing overhead	$	420,000
Direct labor hours		21,000

Management is considering a special order for 780 units of product J45K at $72 each. The normal selling price of product J45K is $83 and the unit product cost is determined as follows:


Direct materials	$	45.00
Direct labor		16.00
Manufacturing overhead applied		24.00

Unit product cost	$	85.00

If the special order were accepted, normal sales of this and other products would not be affected. The company has ample excess capacity to produce the additional units. Assume that direct labor is a variable cost, variable manufacturing overhead is really driven by direct labor hours, and total fixed manufacturing overhead would not be affected by the special order.

Required:

What would be the impact on the company’s overall profit? (Input the amount as a positive value. Round your intermediate calculations to 2 decimal places and final answer to the nearest dollar amount. Omit the “$” sign in your response.)

Total (Click to select) decrease increase in profit

$

this problem is killing me can any one help me and explain how you got the answers 446713

Aug 29, 2021 | Uncategorized

Galley Corp., a merchandiser, recently completed its 2011 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. The company%u2019s balance sheets and income statement follow.

GALLEY CORPORATION Comparative Balance Sheets December 31, 2011 and 2010
	2011		2010
Assets
Cash	$	181,067	$	121,716
Accounts receivable		96,569		84,042
Merchandise inventory		634,283		556,416
Equipment		346,771		310,086
Accum. depreciation%u2014Equipment		(161,314)		(106,260)

Total assets	$	1,097,376	$	966,000

Liabilities and Equity
Accounts payable	$	72,427	$	100,464
Income taxes payable		28,532		25,116
Common stock, $2 par value		566,500		528,500
Paid in capital in excess of par value, common stock		241,250		169,050
Retained earnings		188,667		142,870

Total liabilities and equity	$	1,097,376	$	966,000

GALLEY CORPORATION Income Statement For Year Ended December 31, 2011
Sales			$	2,170,000
Cost of goods sold				1,019,900

Gross profit				1,150,100
Operating expenses
Depreciation expense	$	55,054
Other expenses		427,338		482,392

Income before taxes				667,708
Income taxes expense				130,203

Net income			$	537,505

Additional Information on Year 2011 Transactions
a.	Purchased equipment for $36,685 cash.
b.	Issued 19,000 shares of common stock for $5.80 cash per share.
c.	Declared and paid $491,708 in cash dividends.

Required:
Prepare a complete statement of cash flows; report its cash flows from operating activities according to the direct method. (Amounts to be deducted should be indicated with a minus sign. Omit the “$” sign in your response.)

GALLEY CORPORATION Statement of Cash Flows For Year Ended December 31, 2011
Cash flows from operating activities
(Click to select) Cash paid for equipment Cash paid for merchandise Net increase in cash Cash received from customers Cash paid for other operating expenses Cash paid for income taxes	$
(Click to select) Cash paid for income taxes Cash received from customers Cash paid for other operating expenses Cash paid for merchandise Cash paid for equipment Net increase in cash
(Click to select) Cash paid for equipment Net increase in cash Cash paid for income taxes Cash paid for other operating expenses Cash paid for merchandise Cash received from customers
(Click to select) Cash paid for income taxes Cash paid for equipment Cash paid for merchandise Cash received from customers Net increase in cash Cash paid for other operating expenses

Net cash (Click to select) used in provided by operating activities		$
Cash flows from investing activities
(Click to select) Cash paid for equipment Cash received from issuing stock Cash paid for income taxes Cash paid for cash dividends Depreciation expense Cash paid for merchandise
Cash flows from financing activities
(Click to select) Cash paid for cash dividends Cash from issuing stock Cash paid for other operating expenses Cash paid for income taxes Cash paid for merchandise Cash paid for equipment
(Click to select) Cash paid for merchandise Cash paid for other operating expenses Cash paid for equipment Cash paid for income taxes Cash from issuing stock Cash paid for cash dividends

Net cash (Click to select) used in provided by financing activities

(Click to select) Depreciation expense Net increase in cash Cash paid for merchandise Cash received from customers Net decrease in cash Cash paid for cash dividends		$
Cash balance at beginning of 2011

Cash balance at end of 2011		$

acct 212 446397

Aug 29, 2021 | Uncategorized

The direct labor budget of Krispin Corporation for the upcoming fiscal year includes the following budgeted direct labor hours.

	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter
Budgeted direct labor hours	5,000	4,800	5,200	5,400

The company%u2019s variable manufacturing overhead rate is $1.75 per direct labor hour and the company%u2019s fixed manufacturing overhead is $35,000 per quarter. The only noncash item included in fixed manufacturing overhead is depreciation, which is $15,000 per quarter.

Required:
1.	Complete the company’s manufacturing overhead budget for the upcoming fiscal year. (Input all amounts as positive values. Omit the “$” sign in your response.)

Krispin Corporation Manufacturing Overhead Budget
	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	Year
Variable manufacturing overhead	$	$	$	$	$
Fixed manufacturing overhead

Total manufacturing overhead
Less depreciation

Cash disbursements for manufacturing overhead	$	$	$	$	$

2.	Compute the company’s manufacturing overhead rate (including both variable and fixed manufacturing overhead) for the upcoming fiscal year. (Round your answer to 2 decimal places. Omit the “$” sign in your response.)

Predetermined manufacturing overhead rate

$

dividends per share help 446404

Aug 29, 2021 | Uncategorized

Dividends Per Share

Michelangelo Inc., a software development firm, hasstock outstanding as follows: 30,000 shares of cumulative 2%,preferred stock of $25par, and 38,000 shares of $125 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $5,700; second year, $8,100; third year, $66,160; fourth year, $133,940.

Calculate the dividends per share on each class of stock for each of the four years. Round all answers to the nearest cent. If no dividends are paid in a given year, enter “0”.

	1st Year	2nd Year	3rd Year	4th Year
Preferred	$	$	$	$
Common	$	$	$	$

clarke company uses the periodic inventory method and had the following inventory 446407

Aug 29, 2021 | Uncategorized

Clarke Company uses the periodic inventory method and had the following inventory information available:

		Units	Unit Cost	Total Cost
01 Jan	Beginning Inventory	100	$4	$400
20 Jan	Purchase	400	$5	$2,000
25 Jul	Purchase	200	$7	$1,400
20 Oct	Purchase	300	$8	$2,400
	total	1000		$6,200

A Physical count of inventory on December 31 revealed that there were 400 units on hand.
Answer the following independent questions and show computations supporting your answers:
1	Assume that the company uses FIFO method. That Value of the ending inventory at December 21 is:
2	Assume that the company uses Average Cost method. That Value of the ending inventory at December 21 is:
3	Assume that the company uses LIFO method. That Value of the ending inventory at December 21 is:
4	Determine the difference in the amount of income that the company would have reported if it had used the
	FIFO method instead of the LIFO method. Would income have been greater or less?

Attachments:

Questions.xlsx

managerial accounting i just need the answer for the ratio 446418

Aug 29, 2021 | Uncategorized

The Dorilane Company specializes in producing a set of wood patio furniture consisting of a table and four chairs. The set enjoys great popularity, and the company has ample orders to keep production going at its full capacity of 4,100 sets per year. Annual cost data at full capacity follow:


Factory labor, direct	$86,000
Advertising	$103,000
Factory supervision	$70,000
Property taxes, factory building	$24,000
Sales commissions	$62,000
Insurance, factory	$7,000
Depreciation, administrative office equipment	$2,000
Lease cost, factory equipment	$13,000
Indirect materials, factory	$18,000
Depreciation, factory building	$102,000
Administrative office supplies (billing)	$5,000
Administrative office salaries	$110,000
Direct materials used (wood, bolts, etc.)	$426,000
Utilities, factory	$50,000

Requirement 2:

Compute the average product cost of one patio set. (Round your answer to the nearest dollar amount. Omit the “$” sign in your response.)

Average product cost

$

per patio set

accounting 1 446431

Aug 29, 2021 | Uncategorized

Should be easy, answer question and give a short explanation

I give 1 star if you just guess

On January 1, Able Company purchased equipment costing $202,200 with an estimated salvage value of $15,800, and an estimated useful life of 8 years. What is the amount that should be recorded as depreciation on December 31?

$27,250

$186,400

$202,200

$23,700

$23,300

A company had revenue of $740,000, rent expense of $119,000, utility expense of $11,900, salary expense of $144,500, depreciation expense of $40,900, advertising expense of $42,100, dividends in the amount of $202,000, and an ending balance in retained earnings of $421,300. What is the beginning retained earnings for the period?

$520,700

$358,400

$241,700

$538,000

$381,600

A company reported total equity of $146,000 on its December 31, 2008, balance sheet. The following information is available for the year ended December 31, 2009:

2009 Revenues	$210,000
2009 Expenses	179,000
Liabilities, at December 31, 2009	97,000

What are the total assets of the company at December 31, 2009?

$389,000.

$177,000.

$128,000.

$274,000.

$80,000.

Remix Recording Studios purchased $7,500 in electronic components from VisCom. Remix Recording Studios signed a 90 day, 9% promissory note for $7,500. VisCom’s journal entry to record the sales portion of the transaction is:

Accounts Receivable	8,175
Sales		8,175

Notes Receivable	8,175
Sales		8,175

Notes Receivable	7,500
Interest Receivable	675
Sales		8,175

Accounts Receivable	7,500
Sales		7,500

Notes Receivable	7,500
Sales		7,500

A company had inventory of 8 units at a cost of $16 each on June 1. On June 2, they purchased 7 units at $17 each. On June 6 they purchased 7 units at $21 each. On June 8, they sold 18 units for $54 each. Using the LIFO perpetual inventory method, what was the cost of the 18 units sold?

rev: 05_29_2013_QC_31108

$378.

$355.

$330.

$392.

$251.

A company purchased merchandise inventory at a cost of $4,700 with credit terms 2/15, net 45. If the company elects to pay within the discount period, what would be the appropriate journal entry?

rev: 09_26_2011

Accounts payable	4,700
Merchandise inventory		4,700

Accounts payable	4,700
Merchandise inventory		94
Cash		4,606

Merchandise inventory	4,700
Accounts payable		4,700

Accounts payable	4,606
Cash		4,606

Purchase discount	4,606
Accounts payable		4,606

accounting 1 should be easy i rate the right answers 446432

Aug 29, 2021 | Uncategorized

Should be easy, answer question and give a short explanation

I give 1 star if you just guess

Using the following transactions, calculate the net income.

1. Bill Co. paid $3,700 for one month rent
2. Bill Co. paid $2,900 for two weeks wages
3. Bill Co. performed $6,900 in consulting services on account
4. Bill Co billed a customer $3,200 for services performed
5. Bill Co. received $6,900 in payment for item 3
6. Bill Co performed services and immediately collected $3,700
7. Bill Co. paid $670 for advertising in the local paper

$20,700

$13,430

$13,800

$6,530

$10,230

On August 1, Olivera Company sold merchandise in the amount of $4,600 to Wyne, with credit terms of 3/10, n/30. The cost of the items sold is $3,700. Olivera uses the perpetual inventory system. On August 4, Wyne returns some of the merchandise. The selling price of the merchandise is $460 and the cost of the merchandise returned is $370.The entry or entries that Olivera must make on August 4 is:

Sales returns and allowances	370
Accounts receivable		370

Sales returns and allowances	460
Accounts receivable		460

Accounts receivable	460
Sales returns and allowances		460

Sales returns and allowances	460
Accounts receivable		460
Merchandise inventory	370
Cost of goods sold		370

Accounts receivable	460
Sales returns and allowances		460
Cost of goods sold	370
Merchandise inventory		370

For the year ended December 31, 2010, Mason Company has implemented an employee bonus program equal to 7% of Mason’s net income, which employees will share equally. Mason’s net income (pre bonus) is expected to be $2,500,000, and bonus expense is deducted in computing net income. What is the amount that needs to be recorded for estimated bonus liability for 2010?

$115,000

$40,000

$163,551

$48,697

$175,000

A parcel of land is offered for sale at $151,000, is assessed for tax purposes at $113,000, is recognized by its purchasers as being worth $141,000, and is purchased for $138,000. The land should be recorded in the purchaser’s books at:

$144,000.

$113,000.

$138,000.

$141,000.

$151,000.

A company had cash sales of $49,563, credit sales of $38,576, sales returns and allowances of $7,118 and sales discounts of $4,393. The company’s net sales for this period equal:

$76,628

$99,650

$83,746

$81,021

$88,139

At the end of the day, the cash register’s record shows $1,300, but the count of cash in the cash register is $1,120. The correct entry to record the cash sales for the day is:

Cash	180
Sales		180

Cash	1,120
Sales		1,120

Cash	1,300
Sales		1,300

Cash	1,120
Cash over and short	180
Sales		1,300

Cash	1,300
Sales		1,120
Cash over and short		180

A machine originally had an estimated useful life of 7 years, but after 2 complete years, it was decided that the original estimate of useful life should have been 9 years. At that point the remaining cost to be depreciated should be allocated over the remaining:

11 years

13 years

9 years

7 years

4 years

What would be the account balance in the revenue ledger account after the following transactions?

Performed services and left a bill	$5,000
Performed services and collected immediately	$3,900
Performed services and billed customer	$2,600
Performed services on accounts	$6,800
Received partial payment on account	$1,900

$18,300 Credit

$16,400 Debit

$18,300 Debit

$20,200 Credit

$16,400 Credit

A company sells leaf blowers for $150 each. Each unit has a 3 year warranty that covers replacement of defective parts. It is estimated that 6% of all leaf blowers sold will be returned under the warranty at an average cost of $15 each. During October, the company sold 300,000 leaf blowers. 600 leaf blowers were serviced under the warranty during October at a total cost of $30,000. The balance in the Estimated Warranty Liability account on October 1 was $15,000. What is the company’s warranty expense for the month of October?

	$259,750.
	$270,000.
	$30,000.
	$300,000.
	$265,000.

accounting 446436

Aug 29, 2021 | Uncategorized

Echo Industries received authorization on December 31, 2010, to issue $7,000,000 face value of 6%, 10 year bonds. The interest payment dates are June 30 and December 31. All the bonds were issued on January 1, 2011, at which time similar bonds were trading in the marketplace at 8%.

Review the information about Echo Industries.

REQUIRED:

A. How much cash will investors receive on June 30, 2011?

B. What is the market rate for these bonds?

C. How many interest payments will investors receive over the life of the bond?

D. Will the bond be sold at a premium or discount?

E. What will the issue price be for the bonds? (Show calculations to receive partial credit.)

help 446448

Aug 29, 2021 | Uncategorized

At the end of the fiscal year, the following adjusting entries were omitted:

(a)	No adjusting entry was made to transfer the $1,750 of prepaid insurance from the asset account to the expense account.
(b)	No adjusting entry was made to record accrued fees of $525 for services provided to customers.

Assuming that financial statements are prepared before the errors are discovered, indicate the effect of each error, considered individually, by inserting the dollar amount in the appropriate spaces. Insert “0” if the error does not affect the item.

		Error (a)		Error (b)
		Over stated	Under stated	Over stated	Under stated
(1)	Assets at December 31 would be	$	$	$	$

(2)	Liabilities at Dec. 31 would be	$	$	$	$

(3)	Net income for the year would be	$	$	$	$

(4)	Owner’s equity at Dec. 31 would be	$	$	$	$

transaction analysis various accounts 446453

Aug 29, 2021 | Uncategorized

Enter the followinf column headings across the top of a sheet of paper:

Transaction/ Adjustment Current Assets Current Liabilities Long Term Debt Net Income

Enter the transaction/adjustment letter in the first column, and show the effect, if any, of each of the transactions/adjustments on the appropriate balance sheet category addition (+) or a subtraction ( ). You may also write the journal entries to record each transaction/adjustment.

a. Wages of $768 accrued at the end of the prior fiscal period were paid this fiscal period.

b. Real estate taces of $2,400 applicable to the curent period have not been accrued.

c. Interest on bonds payable has not been accrued for the current month. The company has outstanding $360,000 of 7.5% bonds.

d. The premium related to the bonds in part c has not been amortized for the current month. The current month amortization is $70.

e. Based on the past experience with its warranty program, the estimated warranty expense for the current period should be 0.2% of sales of $918,000.

f. Analysis of the company’s income taxes indicates that taxes currently payable are $76,000 and that the deferred tax liability should be increased by $21,000.

advanced accounting 446460

Aug 29, 2021 | Uncategorized

In this era of rapidly changing technology, research and development (R&D) expenditures represent one of the most important factors in the future success of many companies. Organizations that spend too little on R&D risk being left behind by the competition. Conversely, companies that spend too much may waste money or not be able to make efficient use of the results.In the United States, all R&D expenditures are expensed as incurred. However, expensing all R&D costs is not an approach used in much of the world. Firms using IFRS must capitalize development costs as an intangible asset when they can demonstrate (1) the technical feasibility of completing the project, (2) the intention to complete the project, (3) the ability to use or sell the intangible asset, (4) how the intangible asset will generate future benefits, (5) the availability of adequate resources to complete the asset, and (6) the ability to measure development costs associated with the intangible asset.Should any portion of R&D costs be capitalized? Is expensing all R&D expenditures the best method of reporting these costs? Is the U.S. approach better than the international standard? Which approach provides the best representation of the company%u2019s activeties?

accounting 446469

Aug 29, 2021 | Uncategorized

a) While examining cash receipts information, the accounting department determined the following information: opening cash balance $208, cash on hand $1,562.53, and cash sales per register tape $1,372.20.

Prepare the required journal entry based upon the cash count sheet.

b) The following information pertains to Ghose Company.

1.		Cash balance per bank, July 31, $8,094.
2.		July bank service charge not recorded by the depositor $50.
3.		Cash balance per books, July 31, $8,130.
4.		Deposits in transit, July 31, $3,466.
5.		Note for $2,766 collected for Ghose in July by the bank, plus interest $48 less fee $32. The collection has not been recorded by Ghose, and no interest has been accrued.
6.		Outstanding checks, July 31, $698.

(a) Prepare a bank reconciliation at July 31, 2012.

c) Merrick Company expects to have a cash balance of $60,690 on January 1, 2012. These are the relevant monthly budget data for the first two months of 2012.

1.		Collections from customers: January $85,690, February $160,690
2.		Payments to suppliers: January $54,690, February $89,690
3.		Wages: January $31,997, February $41,997. Wages are paid in the month they are incurred.
4.		Administrative expenses: January $22,997, February $25,997. These costs include depreciation of $1,000 per month. All other costs are paid as incurred.
5.		Selling expenses: January $16,997, February $21,997. These costs are exclusive of depreciation. They are paid as incurred.
6.		Sales of short term investments in January are expected to realize $13,997 in cash. Merrick has a line of credit at a local bank that enables it to borrow up to $25,000. The company wants to maintain a minimum monthly cash balance of $34,690.

Prepare a cash budget for January and February.

lifo and fifo question please answer in detail and show work thanks 446470

Aug 29, 2021 | Uncategorized

Excerpted from Exxon Mobil%u2019s 2012 annual report is the following information about its inventories, most of which are carried at LIFO http://www.exxonmobil.com//Corporate/Files/news_pub_ir_finstmts2012.pdf (Link if Needed)

In 2012, 2011 and 2010, net income included gains of $328 million, $292 million and $317 million, respectively, attributable to the combined effects of LIFO inventory accumulations and drawdowns. The aggregate replacement cost of inventories was estimated to exceed their LIFO carrying values by $21.3 billion and $25.6 billion at December 31, 2012, and 2011, respectively.

Ending inventories of crude oil and products for 12/31/12 and 12/31/11 were $10,836 and 11,665, in millions respectively.

In 2012, ExxonMobil reported cost of goods sold of $303,670 (in millions) and income before income taxes of $78,726 (in millions) with income tax expense of $31,045 (in millions).

A) What is meant by “drawdowns”?

B) Determine what ending inventory would have been if FIFO had been used for 12/31/12 and 12/31/11, respectively.

C) Determine CGS and income before income taxes if Exxon Mobil had used FIFO.

D) Roughly recompute its tax bill if it had used FIFO.

i only need help with the bottom 2 parts 446481

Aug 29, 2021 | Uncategorized

Exercise 13 18 Cash dividends, treasury stock, and statement of retained earnings L.O. C3, P2, P3

Kroll Corporation reports the following components of stockholders%u2019 equity on December 31, 2011.


Common stock%u2014$30 par value, 56,000 shares authorized, 46,000 shares issued and outstanding	$	1,380,000
Paid in capital in excess of par value, common stock		51,000
Retained earnings		272,000

Total stockholders%u2019 equity	$	1,703,000

In year 2012, the following transactions affected its stockholders%u2019 equity accounts.

Jan.	2	Purchased 3,100 shares of its own stock at $30 cash per share.
Jan.	7	Directors declared a $2 per share cash dividend payable on Feb. 28 to the Feb. 9 stockholders of record.
Feb.	28	Paid the dividend declared on January 7.
July	9	Sold 500 of its treasury shares at $35 cash per share.
Aug.	27	Sold 2,600 of its treasury shares at $28 cash per share.
Sept.	9	Directors declared a $2 per share cash dividend payable on October 22 to the September 23 stockholders of record.
Oct.	22	Paid the dividend declared on September 9.
Dec.	31	Closed the $7,000 credit balance (from net income) in the Income Summary account to Retained Earnings.

Required:
1.	Prepare journal entries to record each of these transactions for 2012. (Omit the “$” sign in your response.)

Date		General Journal	Debit	Credit
Jan.	2	(Click to select) Common dividend payable Retained earnings Cash Common stock Treasury stock, common Paid in capital, treasury stock Dividends Income summary
		(Click to select) Paid in capital, treasury stock Common stock Cash Common dividend payable Dividends Treasury stock, common Retained earnings Income summary

Jan.	7	(Click to select) Income summary Paid in capital, treasury stock Common stock Common dividend payable Cash Treasury stock, common Dividends Retained earnings
		(Click to select) Dividends Treasury stock, common Common stock Income summary Paid in capital, treasury stock Cash Common dividend payable Retained earnings

Feb.	28	(Click to select) Income summary Treasury stock, common Common dividend payable Retained earnings Paid in capital, treasury stock Common stock Dividends Cash
		(Click to select) Treasury stock, common Common dividend payable Common stock Income summary Dividends Retained earnings Paid in capital, treasury stock Cash

July	9	(Click to select) Treasury stock, common Cash Income summary Paid in capital, treasury stock Common stock Dividends Retained earnings Common dividend payable
		(Click to select) Retained earnings Cash Paid in capital, treasury stock Treasury stock, common Income summary Common dividend payable Common stock Dividends
		(Click to select) Cash Retained earnings Common dividend payable Dividends Paid in capital, treasury stock Income summary Treasury stock, common Common stock

Aug.	27	(Click to select) Cash Paid in capital, treasury stock Common dividend payable Treasury stock, common Retained earnings Income summary Common stock Dividends
		(Click to select) Paid in capital, treasury stock Dividends Treasury stock, common Income summary Common stock Common dividend payable Retained earnings Cash
		(Click to select) Treasury stock, common Common stock Cash Common dividend payable Paid in capital, treasury stock Retained earnings Income summary Dividends
		(Click to select) Paid in capital, treasury stock Income summary Retained earnings Dividends Treasury stock, common Common stock Common dividend payable Cash

Sept.	9	(Click to select) Income summary Paid in capital, treasury stock Retained earnings Common dividend payable Dividends Treasury stock, common Cash Common stock
		(Click to select) Common dividend payable Common stock Paid in capital, treasury stock Retained earnings Cash Treasury stock, common Income summary Dividends

Oct.	22	(Click to select) Treasury stock, common Income summary Cash Common stock Dividends Retained earnings Common dividend payable Paid in capital, treasury stock
		(Click to select) Retained earnings Treasury stock, common Paid in capital, treasury stock Common stock Income summary Common dividend payable Dividends Cash

Dec.	31	(Click to select) Paid in capital, treasury stock Common dividend payable Cash Income summary Common stock Dividends Retained earnings Treasury stock, common
		(Click to select) Income summary Paid in capital, treasury stock Treasury stock, common Common stock Common dividend payable Cash Retained earnings Dividends

2.	Prepare a statement of retained earnings for the year ended December 31, 2012. (Amounts to be deducted should be indicated with a minus sign. Omit the “$” sign in your response.)

KROLL CORPORATION Statement of Retained Earnings For Year Ended December 31, 2012
(Click to select) Retained earnings, December 31, 2012 Common stock Retained earnings, December 31, 2011 Cash Common dividend payable	$
(Click to select) Add: Net income Less: Net loss


(Click to select) Retained earnings, December 31, 2011 Less: Cash dividends declared Add: Cash dividends declared Add: Treasury stock reissuances Less: Treasury stock reissuances
(Click to select) Less: Cash dividends declared Less: Treasury stock reissuances Add: Cash dividends declared Add: Treasury stock reissuances Retained earnings, December 31, 2011

(Click to select) Less: Treasury stock reissuances Retained earnings, December 31, 2012 Less: Cash dividends declared Retained earnings, December 31, 2011 Add: Cash dividends declared	$

3.	Prepare the stockholders%u2019 equity section of the company%u2019s balance sheet as of December 31, 2012. (Omit the “$” sign in your response.)

KROLL CORPORATION Stockholders%u2019 Equity Section of the Balance Sheet December 31, 2012
(Click to select) Common stock Dividends Retained earnings Paid in capital in excess of par value Treasury stock	$
(Click to select) Treasury stock Dividends Paid in capital in excess of par value Common stock Retained earnings
(Click to select) Dividends Common stock Retained earnings Treasury stock Paid in capital in excess of par value

Total stockholders%u2019 equity	$

rev: 02_21_2012

assignment 446488

Aug 29, 2021 | Uncategorized

Exercise 3 12 Preparing a classified balance sheet L.O. C4

Account Title	Debit		Credit
Cash	$	7,600
Accounts receivable		14,500
Office supplies		7,590
Trucks		186,000
Accumulated depreciation%u2014Trucks			$	38,316
Land		48,000
Accounts payable				11,600
Interest payable				9,000
Long term notes payable				53,000
Common stock				17,000
Retained earnings				154,078
Dividends		36,000
Trucking fees earned				128,000
Depreciation expense%u2014Trucks		24,714
Salaries expense		64,722
Office supplies expense		10,000
Repairs expense%u2014Trucks		11,868

Totals	$	410,994	$	410,994

Use the above adjusted trial balance to prepare Webb Trucking Company%u2019s classified balance sheet as of December 31, 2011.

Asset

Current Assets

total current Asset

Plan Assets

total Plan Assets

Total Assets

Liabilities

Current Liabilities

total current liabilities

total liabilities

Equity

Total equity

Total liabilities and Equity

assignment 5 1 446490

Aug 29, 2021 | Uncategorized

Exercise 5 7 Lower of cost or market L.O. P2

Ripken Company’s ending inventory includes the following items.

		Per Unit

Product	Units	Cost		Market
Helmets	34	$	56	$	52
Bats	27		74		80
Shoes	48		93		97
Uniforms	52		38		38

Compute the lower of cost or market for ending inventory applied separately to each product. (Omit the “$” sign in your response.)

Product	LCM applied to products
Helmets	$
Bats
Shoes
Uniforms

Total inventory at LCM	$

check my workView Hint #1referencesebook & resources

accounting 446509

Aug 29, 2021 | Uncategorized

Fallgatter, Inc., expects to sell 17,500 units. Each unit requires 3 pounds of direct materials at $12 per pound and 2 direct labor hours at $10 per direct labor hour. The overhead rate is $8 per direct labor hour. The beginning inventories are as follows: direct materials, 2,000 pounds; finished goods, 2,500 units. The planned ending inventories are as follows: direct materials, 5,600 pounds; finished goods, 3,000 units.Given a planned production of 10,000 units, what are the planned direct materials purchases? Answer

	a.	$367,200
	b.	$331,200
	c.	$403,200
	d.	$295,200

accounting 446510

Aug 29, 2021 | Uncategorized

Fantastic Futons manufactures futons. The estimated number of futon sales for the first three months of 2010 are as follows:

January	40,000
February	50,000
March	60,000

Finished goods inventory at the end of 2009 was 12,000 units. On average, 25 percent of the futons are produced during the month before they are sold, which normally accounts for the ending balance in finished goods inventory. The planned selling price is $150 per unit.What would be the sales budget for March? Answer

	a.	$6,750,000
	b.	$8,000,000
	c.	$7,200,000
	d.	$9,000,000

accounting 446513

Aug 29, 2021 | Uncategorized

Fantastic Futons manufactures futons. The estimated number of futon sales for the first three months of 2010 are as follows:

January	40,000
February	50,000
March	60,000

Finished goods inventory at the end of 2009 was 12,000 units. On average, 25 percent of the futons are produced during the month before they are sold, which normally accounts for the ending balance in finished goods inventory. The planned selling price is $150 per unit.Fantastic Futons buys direct materials for the futons in cloth rolls priced at $80 each. Each roll provides direct material for 40 futons. There was one roll in the direct materials inventory at the beginning of January, and the company expects to have four rolls in inventory at the end of the month. Assuming the production budget calls for 60,000 units to be produced in January, what would be the amount of the cloth rolls direct materials purchases budget for that month? Answer

	a.	$120,000
	b.	$119,760
	c.	$114,000
	d.	$120,240

accounting problems 446516

Aug 29, 2021 | Uncategorized

Fatima Company is engaged in the business of women’s clothing, sold only in the US.The income statement of Fatima Co. for the 2012 year is presented below. For 2013, the company is expecting a growth in the gross revenues as well as in net income. This expansion will be possible, however only if the following assumptions are correct. 1. Increase the sales of women’s clothing (the existing product line ) in the US by 25% . 2. Add men’s clothing for the first time in its product line; total of 10,000 men’s suits will be sold in 2013 at an average price of $260 per unit. The suits will be purchased from a South African company at a price of $165 per unit and sold to the customers golbally. The company projects that 80% of the online customers will be within the US and the reamaining 20% will be international customers. For the international customers the shipping and handling cost willbe $30 (double of the shipping and handling expenses for the US online customers). 3. The cost of goods sold for the existing (US) product line consists of 80% variable and 20% fixed. (remember the cost behavior? The fixed will remain unchanged unless new fixed expenses are specifically identified in this project; existing amount of the variable expenses will increase in the ratio of the increase in sales). The operating expenses for the existing line of business are 45% fixed and 55% variable. (Note that this ratio may change). 4. The variable operating expenses for the online market will be 20% (as a percent of online sales of men’s suits): In addition, there will be fixed opearting expenses for the online business in the amount of $55,000/ per year. The 20% variable operating expenses do not include the additional shipping and handling chanrges which are to be incurred for the online customers. REQUIREMENTS: A. Calculate the net projected income for 2013, assuming the tax rate changes to 25%. (For the company as a whole) B. Calculate the profit margin for 2012 and 2013 and the percentage change in the net income. C. Show all calculations. 2012 2013 Sales (Only US) 955,000 Cost of Sales 592,100 F 118,420 (592,100 * .2) V 473,680 (592,100 * .8) Gross Profit 362,900 Operating Expenses 130,000 F 58,500 (130,000 * .45) V 71,500 (130,000 * .55) Operating Income 232,900 Income Tax (20%) 46,580 Net Income 186,320 Profit Margin 19.51%

angel garden 446519

Aug 29, 2021 | Uncategorized

Feb 3 purchased $3,000 of inventory on account under terms of 2/10, n/eom(end of month) and FOB shipping point.

7 returned $500 of detective merchandise purchase on February 3.

9 paid freight bill of $90 on February 3 purchase

10 sold inventory on account for 4, 600. Payment terms were 2/15 n/30. These goods cost the company $2,500.

12 paid amount owed on credit purchase of February 3, less the return and the discount

16 granted a sales allowances of $300 on the Febraury 10 sale

23 received cash from February 10 customer in full settlement of her debt , less the allowance and the discount .

Please help me journalize the February transactions for angel garden gifts. No explanations are required.

funtime inc makes small toys in a one department production pro 282240

Aug 29, 2021 | Uncategorized

Funtime Inc. makes small toys in a one department production process. Plastic is added at the beginning of the process; all other materials are considered indirect. The following information is available relative to September 2010 production activities:

Beginning WIP Inventory: 15,000 toys (60% complete as to labor; 75% complete as to overhead)

Started into production: plastic for 620,000 toys

Ending WIP Inventory: 25,400 toys (35% complete as to labor; 60% complete as to overhead)

a. Compute the EUP for direct material, direct labor, and overhead using weighted average process costing.

b. Compute the EUP for direct material, direct labor, and overhead using FIFO process costing.

c. Reconcile the calculations in parts (a) and (b).

g p soap company manufactures powdered detergent phosphate is p 282241

Aug 29, 2021 | Uncategorized

G&P Soap Company manufactures powdered detergent. Phosphate is placed in process in the Making Department, where it is turned into granulars. The output of Making is transferred to the Packing Department, where packaging is added at the beginning of the process. On December 1, G&P Soap Company had the following inventories:

Finished Goods ……………. $14,500

Work in Process—Making ….. 5,670

Work in Process—Packing ….. 7,230

Materials …………………….. 3,200

Departmental accounts are maintained for factory overhead, which both have zero balances on December 1.

Manufacturing operations for December are summarized as follows:

a. Materials purchased on account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $167,900

b. Materials requisitioned for use:

Phosphate—Making Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $114,200

Packaging—Packing Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42,500

Indirect materials—Making Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,100

Indirect materials—Packing Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,580

c. Labor used:

Direct labor—Making Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 79,400

Direct labor—Packing Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53,200

Indirect labor—Making Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000

Indirect labor—Packing Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26,900

d. Depreciation charged on fixed assets:

Making Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $14,800

Packing Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,300

e. Expired prepaid factory insurance:

Making Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,000

Packing Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200

f. Applied factory overhead:

Making Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $37,500

Packing Department . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,100

g. Production costs transferred from Making Department to Packing Department … $215,800

h. Production costs transferred from Packing Department to Finished Goods . . $351,200

i. Cost of goods sold during the period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $354,800

Instructions

1. Journalize the entries to record the operations, identifying each entry by letter.

2. Compute the December 31 balances of the inventory accounts.

3. Compute the December 31 balances of the factory overhead accounts.

this is the cost accounting assignment 282243

Aug 29, 2021 | Uncategorized

Question 1. Why are equivalent units of production used in process costing?

Question 2:

Baum Co. has two processing departments: F…

Baum Co. has two processing departments: Fabrication and Assembly. In the Fabrication Department, metal is cut and formed into various components, which are then transferred to Assembly. The

View complete question »

Baum Co. has two processing departments: Fabrication and Assembly. In the Fabrication Department, metal is cut and formed into various components, which are then transferred to Assembly. The components are welded, polished, and coated with sealant in the Assembly Department. April 2010 production data for these two departments follow.

Fabrication

Beginning WIP Inventory (100% complete as to material; ……… 5,000

25% complete as to conversion)

Units started during month …………………………………….40,000

Ending WIP Inventory (100% complete as to material; ………… 6,800

60% complete as to conversion)

Assembly

Beginning WIP Inventory (0% complete as to sealant; …………… 2,000

35% complete as to conversion)

Units started during month…………………………………………. ?

Ending WIP Inventory (0% complete as to sealant; ………………. 6,100

15% complete as to conversion)

a. Determine the equivalent units of production for each cost component for each department under the WA method.

b. Determine the equivalent units of production for each cost component for each department under the FIFO method.

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Question 1. Why are equivalent units of production used in process costing? Question 2: Baum Co. has two processing departments: F… Baum Co. has two processing departments: Fabrication and Assembly. In the Fabrication Department, metal is cut and formed into various components, which are then transferred to Assembly. The?? HYPERLINK “javascript:void(0);” ?View complete question »? Baum Co. has two processing departments: Fabrication and Assembly. In the Fabrication Department, metal is cut and formed into various components, which are then transferred to Assembly. The components are welded, polished, and coated with sealant in the Assembly Department. April 2010 production data for these two departments follow.?Fabrication?Beginning WIP Inventory (100% complete as to material; ……… 5,000?25% complete as to conversion) ?Units started during month …………………………………….40,000?Ending WIP Inventory (100% complete as to material; ………… 6,800?60% complete as to conversion) ?Assembly?Beginning WIP Inventory (0% complete as to sealant; …………… 2,000?35% complete as to conversion) ?Units started during month…………………………………………. ??Ending WIP Inventory (0% complete as to sealant; ………………. 6,100?15% complete as to conversion) ?a. Determine the equivalent units of production for each cost component for each department under the WA method.?b. Determine the equivalent units of production for each cost component for each department under the FIFO method.

Attachments:

Assignment.docx

general mills is a company that uses process costing extensively 282244

Aug 29, 2021 | Uncategorized

General Mills is a company that uses process costing extensively. Go to the companion Web site at www.cengage.com/accounting/vanderbeck and click on the file for General Mills.

Required:

Answer the following questions while navigating General Mills’s ?~?~A Champion’s Code of Conduct’’:

1. What guidance are supervisors given on how to handle a request from an outsider, claiming to be working as a General Mills consultant, for information on employees’ start dates, titles, and base salaries?

2. What guidance is given to an employee who was planning to make a General Mills stock trade prior to becoming aware of material nonpublic information?

3. What advice is given to an employee working in Europe who received an expensive gift from a supplier in recognition of a new contract?

4. What advice is given to an employee who was told that she had to pay a gratuity to a minor official to clear General Mills’s products through customs?

golding manufacturing a division of farnsworth sporting inc p 282250

Aug 29, 2021 | Uncategorized

Golding Manufacturing, a division of Farnsworth Sporting Inc., produces two different models of bows and eight models of knives. The bow manufacturing process involves the production of two major subassemblies: the limbs and the handles. The limbs pass through four sequential processes before reaching final assembly: layup, molding, fabricating, and finishing. In the layup department, limbs are created by laminating layers of wood. In the molding department, the limbs are heat treated, under pressure, to form strong resilient limbs. In the fabricating department, any protruding glue or other processing residue is removed. Finally, in the finishing department, the limbs are cleaned with acetone, dried, and sprayed with the final finishes.

The handles pass through two processes before reaching final assembly: pattern and finishing. In the pattern department, blocks of wood are fed into a machine that is set to shape the handles. Different patterns are possible, depending on the machine’s setting. After coming out of the machine, the handles are cleaned and smoothed. They then pass to the finishing department, where they are sprayed with the final finishes. In final assembly, the limbs and handles are assembled into different models using purchased parts such as pulley assemblies, weight adjustment bolts, side plates, and string.

Golding, since its inception, has been using process costing to assign product costs. A predetermined overhead rate is used based on direct labor dollars (80 percent of direct labor dollars). Recently, Golding has hired a new controller, Karen Jenkins. After reviewing the product costing procedures, Karen requested a meeting with the divisional manager, Aaron Suhr. The following is a transcript of their conversation.

Karen: Aaron, I have some concerns about our cost accounting system. We make two different models of bows and are treating them as if they were the same product. Now I know that the only real difference between the models is the handle.

The processing of the handles is the same, but the handles differ significantly in the amount and quality of wood used. Our current costing does not reflect this difference in material input.

Aaron: Your predecessor is responsible. He believed that tracking the difference in material cost wasn’t worth the effort. He simply didn’t believe that it would make much difference in the unit cost of either model.

Karen: Well, he may have been right, but I have my doubts. If there is a significant difference, it could affect our views of which model is more important to the company. The additional bookkeeping isn’t very stringent. All we have to worry about is the pattern department. The other departments fit what I view as a process costing pattern.

Aaron: Why don’t you look into it? If there is a significant difference, go ahead and adjust the costing system.

After the meeting, Karen decided to collect cost data on the two models: the Deluxe model and the Econo model. She decided to track the costs for one week. At the end of the week, she had collected the following data from the pattern department:

a. There were a total of 2,500 bows completed: 1,000 Deluxe models and 1,500 Econo models.

b. There was no BWIP; however, there were 300 units in EWIP: 200 Deluxe and 100 Econo models. Both models were 80 percent complete with respect to conversion costs and 100 percent complete with respect to materials.

c. The pattern department experienced the following costs:

Direct materials …………. $114,000

Direct labor …………………. 45,667

d. On an experimental basis, the requisition forms for materials were modified to identify the dollar value of the materials used by the Econo and Deluxe models:

Econo model ……… $30,000

Deluxe model ………. 84,000

Required:

1. Compute the unit cost for the handles produced by the pattern department assuming that process costing is totally appropriate. Round unit cost to two decimal places.

2. Compute the unit cost of each handle using the separate cost information provided on materials. Round unit cost to two decimal places.

3. Compare the unit costs computed in Requirements 1 and 2. Is Karen justified in her belief that a pure process costing relationship is not appropriate? Describe the costing system that you would recommend.

4. In the past, the marketing manager has requested more money for advertising the Econo line. Aaron has repeatedly refused to grant any increase in this product’s advertising budget because its per unit profit (selling price less manufacturing cost) is so low. Given the results in Requirements 1 through 3, was Aaron justified in his position?

hebert industries uses a weighted average process costing system 282266

Aug 29, 2021 | Uncategorized

Hebert Industries uses a weighted average process costing system. Management has specified that the normal loss from shrinkage cannot exceed 3 percent of the units started in a period. All raw material is added at the start of the production process. Spoilage is determined upon inspection at the end of the production process. March processing information follows.

Beginning WIP Inventory (30% complete as to conversion) …………… 20,000 units

Started during March …………………………………………………….120,000 units

Completed during March ………………………………………………..116,400 units

Ending WIP Inventory (20% complete as to conversion) 16,000 units

a. How many total units are there to account for?

b. How many units were spoiled during processing? Of the spoiled units, how many should be treated as a normal loss? As an abnormal loss?

c. What are the equivalent units of production for direct material? For conversion?

d. How are costs associated with the company’s normal spoilage handled?

e. How are costs associated with the company’s abnormal spoilage handled?

Aug 29, 2021 | Uncategorized

In November 2010, Angerstein Co. computed its equivalent unit costs under FIFO process costing as follows:

Direct material …………………..$29.50

Packaging ……………………….. 3.00

Direct labor ……………………….. 10.84

Overhead …………………………. 7.68

Direct material and packaging are added at the start and end of processing, respectively. Beginning inventory cost was $1,026,810 and consisted of

?c $789,040 direct material cost for 54,000 EUP.

?c $91,862 direct labor cost for 16,200 EUP.

?c $145,908 overhead cost for 18,900 EUP.

Angerstein Co. transferred a total of 370,000 units to finished goods during November and had 12,000 units in ending WIP Inventory. The ending inventory units were 30 percent complete as to direct labor and 55 percent complete as to overhead.

a. What percentage complete were the beginning inventory units as to direct material? Packaging? Direct labor? Overhead?

b. What was the total cost of the completed beginning inventory units?

c. What was the cost of the units started and completed in November?

d. What was the cost of November’s ending inventory?

in papermaking operations for companies such as international pa 282329

Aug 29, 2021 | Uncategorized

In papermaking operations for companies such as International Paper Company, Wet pulp is fed into paper machines, which press and dry pulp into a continuous sheet of paper. The paper is formed at very high speeds (60 mph). Once the paper is formed, the paper is rolled onto a reel at the back end of the paper machine. One of the characteristics of papermaking is the creation of ?obroke?? paper. Broke is paper that fails to satisfy quality standards and is therefore rejected for final shipment to customers, Broke is recycled back to the beginning of the process by combining the recycled paper with virgin (new) pulp material. The combination of virgin pulp and recycled broke is sent to the paper machine for papermaking. Broke is fed into this recycle process continuously from all over the facility.

In this industry, it is typical to charge the papermaking operation with the cost of direct materials, which is a mixture of virgin materials and broke. Broke has a much lower cost than does virgin pulp. Therefore, the more broke in the mixture, the lower the average cost of direct materials to the department. Papermaking managers will frequently comment on the importance of broke for keeping their direct materials costs down.

a. How do you react to this accounting procedure?

b. What ?ohidden costs?? are not considered when accounting for broke as described above?

itzgood makes a variety of healthy snack foods the following 282351

Aug 29, 2021 | Uncategorized

Itzgood makes a variety of healthy snack foods. The following information for January 2010 relates to a trail mix. Materials are added at the beginning of processing; overhead is applied based on direct labor. The mix is transferred to a second department for packaging. Itzgood’s uses a FIFO process costing system.

Beginning WIP Inventory (40% complete as to conversion) ………….20,000 pounds

Mix started in January …………………………………………………. 321,600 pounds

Ending WIP Inventory (80% complete as to conversion) ……………..16,000 pounds

Material cost incurred in January …………………………………….. $778,272

Conversion cost incurred in January ………………………………….. $277,536

Beginning inventory cost totaled $53,580. For January 2010, compute the following:

a. Equivalent units of production for material and conversion.

b. Cost per equivalent unit by cost component.

c. Cost of mix transferred to the packaging department in January.

d. Cost of January’s ending inventory.

jerry never imagined he d be sitting there in washington being 282359

Aug 29, 2021 | Uncategorized

Jerry never imagined he’d be sitting there in Washington being grilled mercilessly by a panel of congressmen. But a young government auditor picked up on his scheme last year. His company produced hi tech navigation devices that were sold to both military and civilian clients. The military contracts were ?ocost plus,?? meaning that payments were calculated based on actual production costs plus a profit markup. The civilian contracts were bid out in a very competitive market, and every dollar counted. Jerry knew that because all the jobs were done in the same factory, he could manipulate the allocation of overhead costs in a way that would shift costs away from the civilian contracts and into the military ?ocost plus?? work. That way, the company would collect more from the government and be able to shave its bids down on civilian work. He never thought anyone would discover the alterations he had made in the factory workers’ time sheets, but one of his accountants had noticed and tipped off the government auditor. Now as the congressman from Michigan rakes him over the coals, Jerry is trying to figure out his chances of dodging jail time.

Requirements

1. Based on what you have read above, what was Jerry’s company using as a cost driver to allocate overhead to the various jobs?

2. Name two ways that reducing costs on the civilian contracts would benefit the company.

kellogg company manufactures cold cereal products such as frost 282366

Aug 29, 2021 | Uncategorized

Kellogg Company manufactures cold cereal products, such as Frosted Fakes. Assume that the inventory in process on January 1 for the packing. Department included 750 pounds of cereal in the packing machine hopper, enough for 500 24 oz, boxes. In addition, there were 500 empty 24 oz, boxes held in the package carousel of the packing machine. During January, 41,500 boxes of 24 oz, cereal were packaged. Conversion costs are incurred when a box is filled with cereal. On January 31, the packing machine hopper held 960 pounds of cereal, and the package carousel held 640 empty 24 oz, (1 ?1 pound) boxes. Assume that once a box is filled with cereal, it is immediately transferred to the finished goods warehouse.

Determine the equivalent units of production for cereal, boxes, and conversion costs for January. An equivalent units is defined as ?opounds?? for cereal and ?o24 oz, boxes?? for boxes and conversion costs.

klein corporation manufactures in separate processes refrigerato 282376

Aug 29, 2021 | Uncategorized

Klein Corporation manufactures in separate processes refrigerators and freezers for homes. In each process, materials are entered at the beginning and conversion costs are incurred uniformly. Production and cost data for the first process in making two products in two different manufacturing plants are as follows.

Instructions

(a) For each plant:

(1) Compute the physical units of production.

(2) Compute equivalent units of production for materials and for conversion costs.

(3) Determine the unit costs of production.

(4) Show the assignment of costs to units transferred out and in process.

(b) Prepare the production cost report for Plant A for June 2012.

accounting for leases annual contractual payments of 16 664 at the end of each year 446355

Aug 29, 2021 | Uncategorized

On December 31, 2010, Lopez Co (lessee) signed a 3 year, non cancelable lease for the use of manufacturing equipment now owned by Zinger Inc (lessor). The lease expires December 31, 2013 and has the following terms:

1. Annual contractual payments of $16,664 at the end of each year. The first payment is due December 31, 2010.

2. No down payment, No purchase option

3. The asset’s FMV at 12/31/10 is $60,000.

4. Lopez does note guarantee any residual value at 12/31/13.

5. Lopez can borrow at 10% per year for a 3 year loan; Lopez is unaware of Zinger’s 8% desired return rate.

6. The estimated useful life of the asset is 4 years.

Give Lopez’s annual cash flow (indicate operating/investing/financing) and income statement impacts, as well as the cumulative balance sheet impacts (including separating current vs. non current debt) of this lease from 2010 to 2013. Round all answers to whole dollars.

homework help please managerial accnt 446359

Aug 29, 2021 | Uncategorized

During Denton Company’s first two years of operation, the company reported absorption costing net operating income as follows: Year1 Year 2

Sales (@$63 per unit) $1,197,000 $1,827,000

Cost goods sold (@ $39 per unit) $741,000 $1,131,000

Gross margin $456,000 $696,000

Selling and Admin expenses $308,000 $338,000

Net Operating Income $148,000 $358,000

*$3 per unit variable; $251,000 fixed each year

The companys $39 unit product cost is computed as follows:

Direct material $7

Direct Labor $11

Variable Mfg OH $2

Fixed mfg OH ($456,000/24,000 units) $19

Absorption costing unit product cost $39

Production and cost data for the two years are given below:

Year 1 Year 2

Units produced 24,000 24,000

Units sold 19,000 29,000

1. Required:

Prepare a variable costing contribution format income statement for each year.

Variable Costing Income Statement Year 1 Year 2

Variable Expenses:

choose (in order):

Fixed Selling and administrative expenses $

Variable selling and administrative expenses

Variable cost of goods sold

Sales

Fixed manufacturing overhead

Net operating income (loss)

Contribution Margin

Total variable Expenses:

choose:

Contribution Margin $

Variable cost of goods sold

Fixed manufacturing overhead

Net operating income (loss)

Fixed Selling and administrative expenses

Variable selling and administrative expenses

Sales

Fixed expenses:

choose:

Contribution Margin $

Variable cost of goods sold

Fixed manufacturing overhead

Net operating income (loss)

Fixed Selling and administrative expenses

Variable selling and administrative expenses

Sales

Total fixed expenses:

choose:

Contribution Margin $

Variable cost of goods sold

Fixed manufacturing overhead

Net operating income (loss)

Fixed Selling and administrative expenses

Variable selling and administrative expenses

Sales

2.

Reconcile the absorption costing and variable costing net operating income figures for each year.

Year 1 Year 2

Variable costing net operating income (loss) $

Add (deduct) fixed mfg overhead deferred in (released from) inventory under absorption costing

Absorb costing net operating income (loss) $

acg 446365

Aug 29, 2021 | Uncategorized


		Department A had no beginning inventory. The department added direct materials of $120,000 and conversion costs of $176,000 during the month of June. Materials are added at the beginning of the process and conversion costs are added evenly throughout the process in this department. During the period 40,000 units were completed and at the end of the period 40,000 units remained which were 10% complete. What is the cost per equivalent unit of materials and conversion costs, respectively in June?

acct 203 446380

Aug 29, 2021 | Uncategorized

To determine annual cash inflow, depreciation is

subtracted from net income because it is an expense.

added back to net income because it is not an outflow of cash.

subtracted from net income because it is an outflow of cash.

added back to net income because it is an inflow of cash.

A negative net present value means that the

project’s rate of return exceeds the required rate of return.

project’s rate of return equals the required rate of return.

project is acceptable.

project’s rate of return is less than the required rate of return.

financial accounting 446382

Aug 29, 2021 | Uncategorized

Determine whether recording each of the following adjustments will increase (i), decrease (d), or have no effect (NE) on each of the three elements of the accounting equation.

Transactions Assets = Liabilities + SE

Ex: Wages earned during the period but not yet paid NE I D

are accrued.

1. Prepaid insurance is reduced for the portion

of the policy that has expired during the period.

2. Interest incurred during the period but not yet

Paid is accrued.

3. Depreciation for the period is recorded

4. Revenue is recorded for the earned portion of a

liability for amounts collected in advance from

customers.

5. Rent revenue is recorded for amounts owed by

a tenant but not yet received.

6. Income taxes owed but not yet paid are accrued.

appalachian bakery company manufactures cookies materials are p 282025

Aug 29, 2021 | Uncategorized

Appalachian Bakery Company manufactures cookies. Materials are placed in production in the Baking Department and after processing are transferred to the Packing Department, where packing materials are added. The finished products emerge from the Packing Department.

There were no inventories of work in process at the beginning or at the end of August 2008. Finished goods inventory at August 1 was 900 cases of cookies at a total cost of $40,500.

Transactions related to manufacturing operations for August are summarized as follows:

a. Materials purchased on account, $425,000.

b. Materials requisitioned for use: Baking Department, $345,500 ($334,500 entered directly into the product); Packing Department, $73,500 ($72,000 entered directly into the product).

c. Labor costs incurred: Baking Department, $168,000 ($154,300 entered directly into the product); Packing Department, $127,000 ($119,600 entered directly into the product).

d. Miscellaneous costs and expenses incurred on account: Baking Department, $16,300; Packing Department, $6,300.

e. Depreciation charged on fixed assets: Baking Department, $22,400; Packing Department, $11,900.

f. Expiration of various prepaid expenses: Baking Department, $4,700; Packing Department, $2,300.

g. Factory overhead applied to production, based on machine hours: $67,500 for Baking and $30,700 for Packing.

h. Output of Baking Department: 17,000 cases.

i. Output of Packing Department: 17,000 cases of cookies.

j. Sales on account: 17,600 cases of cookies at $90. Credits to the finished goods account are to be made according to the first in, first out method.

Instructions

Journalize the entries to record the transactions, identifying each by letter. Include as an explanation for entry (j) the number of cases and the cost per case of cookies sold.

baum co has two processing departments fabrication and assembl 282064

Aug 29, 2021 | Uncategorized

Baum Co. has two processing departments: Fabrication and Assembly. In the Fabrication Department, metal is cut and formed into various components, which are then transferred to Assembly. The components are welded, polished, and coated with sealant in the Assembly Department. April 2010 production data for these two departments follow.

Fabrication

Beginning WIP Inventory (100% complete as to material; ……… 5,000

25% complete as to conversion)

Units started during month …………………………………….40,000

Ending WIP Inventory (100% complete as to material; ………… 6,800

60% complete as to conversion)

Assembly

Beginning WIP Inventory (0% complete as to sealant; …………… 2,000

35% complete as to conversion)

Units started during month…………………………………………. ?

Ending WIP Inventory (0% complete as to sealant; ………………. 6,100

15% complete as to conversion)

a. Determine the equivalent units of production for each cost component for each department under the WA method.

b. Determine the equivalent units of production for each cost component for each department under the FIFO method.

blue ribbon flour company manufactures flour by a series of 282076

Aug 29, 2021 | Uncategorized

Blue Ribbon Flour Company manufactures flour by a series of three processes, beginning in the Milling Department. From the Milling Department, the materials pass through the Sifting and Packaging departments, emerging as packaged refined flour.

The balance in the account Work in Process—Sifting Department was as follows on October 1, 2008:

Work in Process—Sifting Department (15,000 units, 75% completed) …. $42,000

The following costs were charged to Work in Process—Sifting Department during October:

Direct materials transferred from Milling Department: 235,800 units … $632,600

Direct labor ……………………………………………………………… 160,735

Factory overhead …………………………………………………………. 76,900

During October, 233,800 units of flour were completed. Work in Process—Sifting Department on October 31 was 17,000 units, 75% completed.

Instructions

Prepare a cost of production report for the Sifting Department for October, using the average cost method.

Aug 29, 2021 | Uncategorized

Carmeli Instrument Inc. manufactures two products: missile range instruments and space pressure gauges. During January, 50 range instruments and 300 pressure gauges were produced, and overhead costs of $81,000 were incurred. An analysis of overhead costs reveals the following activities.

?

The cost driver volume for each product was as follows.

?

Instructions

(a) Determine the overhead rate for each activity.

(b) Assign the manufacturing overhead costs for January to the two products using activity based costing.

(c) Write a memo to the president of Carmeli Instrument, explaining the benefits of activity basedcosting.

carmen company uses weighted average process costing to account 282098

Aug 29, 2021 | Uncategorized

Carmen Company uses weighted average process costing to account for its production costs. Direct labor is added evenly throughout the process. Direct materials are added at the beginning of the process. During November, the company transferred 735,000 units of product to finished goods. At the end of November, the goods in process inventory consists of 207,000 units that are 90% complete with respect to labor.

Beginning inventory had $244,920 of direct materials and $69,098 of direct labor cost. The direct labor cost added in November is $1,312,852, and the direct materials cost added is $1,639,080.

Required

1. Determine the equivalent units of production with respect to

(a) Direct labor and

(b) Direct materials.

2. Compute both the direct labor cost and the direct materials cost per equivalent unit.

3. Compute both direct labor cost and direct materials cost assigned to

(a) Units completed and transferred out, and

(b) Ending goods in process inventory.

Analysis Component

4. The company sells and ships all units to customers as soon as they are completed. Assume that an error is made in determining the percentage of completion for units in ending inventory. Instead of being 90% complete with respect to labor, they are actually 75% complete. Write a one page memo to the plant manager describing how this error affects its November financial statements.

carol gorden was a good friend of yours in high 282100

Aug 29, 2021 | Uncategorized

Carol Gorden was a good friend of yours in high school and is from your home town. While you chose to major in accounting when you both went away to college, she majored in marketing and management. You have recently been promoted to accounting manager for the Snack Foods Division of Koonce Enterprises, and your friend was promoted to regional sales manager for the same division of Koonce. Carol recently telephoned you. She explained that she was familiar with job cost sheets, which had been used by the Special Projects division where she had formerly worked. She was, however, very uncomfortable with the production cost reports prepared by your division. She faxed you a list of her particular questions:

1. Since Koonce occasionally prepares snack foods for special orders in the Snack Foods

Division, why don’t we track costs of the orders separately?

2. What is an equivalent unit?

3. Why am I getting four production cost reports? Isn’t there one Work in Process account?

Instructions

Prepare a memo to Carol. Answer her questions, and include any additional information you think would be helpful. You may write informally, but do use proper grammar and punctuation.

consider the following conversation between gary means manager 282120

Aug 29, 2021 | Uncategorized

Consider the following conversation between Gary Means, manager of a division that produces industrial machinery, and his controller, Donna Simpson, a certified management accountant and certified public accountant:

Gary: Donna, we have a real problem. Our operating cash is too low, and we are in desperate need of a loan. As you know, our financial position is marginal, and we need to show as much income as possible—and our assets need bolstering as well.

Donna: I understand the problem, but I don’t see what can be done at this point. This is the last week of the fiscal year, and it looks like we’ll report income just slightly above break even.

Gary: I know all this. What we need is some creative accounting. I have an idea that might help us, and I wanted to see if you would go along with it. We have 200 partially finished machines in process, about 20 percent complete. That compares with the 1,000 units that we completed and sold during the year. When you computed the per unit cost, you used 1,040 equivalent units, giving us a manufacturing cost of $1,500 per unit. That per unit cost gives us cost of goods sold equal to $1.5 million and ending work in process worth $60,000. The presence of the work in process gives us a chance to improve our financial position. If we report the units in work in process as 80 percent complete, this will increase our equivalent units to 1,160. This, in turn, will decrease our unit cost to about $1,345 and cost of goods sold to $1.345 million. The value of our work in process will increase to $215,200.With those financial stats, the loan would be a cinch.

Donna: Gary, I don’t know. What you’re suggesting is risky. It wouldn’t take much auditing skill to catch this one.

Gary: You don’t have to worry about that. The auditors won’t be here for at least six to eight more weeks. By that time, we can have those partially completed units completed and sold. I can bury the labor cost by having some of our more loyal workers work overtime for some bonuses. The overtime will never be reported. And, as you know, bonuses come out of the corporate budget and are assigned to overhead—next year’s overhead. Donna, this will work. If we look good and get the loan to boot, corporate headquarters will treat us well. If we don’t do this, we could lose our jobs.

Required:

1. Should Donna agree to Gary’s proposal? Why or why not? To assist in deciding, review the corporate code of ethics standards described in Chapter 1. Do any apply?

2. Assume that Donna refuses to cooperate and that Gary accepts this decision and drops the matter. Does Donna have any obligation to report the divisional manager’s behavior to a superior? Explain.

3. Assume that Donna refuses to cooperate; however, Gary insists that the changes be made. Now what should she do? What would you do?

4. Suppose that Donna is age 63 and that the prospects for employment elsewhere are bleak. Assume again that Gary insists that the changes be made. Donna also knows that his supervisor, the owner of the company, is his father in law. Under these circumstances, would your recommendations for Donna differ?

consider the following incomplete statements a is used b 282123

Aug 29, 2021 | Uncategorized

Consider the following incomplete statements

(a) _____ is used by companies that produce small quantities of many different products.

(b) Georgia Pacific pulverizes wood into pulp to manufacture cardboard. The company uses a _____ system.

(c) To record costs of manufacturing thousands of identical files, the file manufacturer will use a _____ system.

(d) Companies that produce large numbers of identical products use _____ systems for product costing.

(e) The computer repair service that visits your home and repairs your computer uses a _____ system.

(f) Apple assembles electronic parts and software to manufacture millions of iPods. Apple uses a ___________ system.

(g) Textbook publishers produce titles of a particular book in batches. Textbook publishers use a __________ system.

(h) A company that bottles milk into one gallon containers uses a ________ system.

(i) A company that makes large quantities of one type of tankless hot water heater uses a __________ system.

(j) A particular governmental agency takes bids for specific items it utilizes. Each item requires a separate bid. The agency uses a ___________ system.

Requirement

1. Complete each of the statements with the term job order costing or the term process costing.

consider the following transactions for judy s sofas a incurr 282124

Aug 29, 2021 | Uncategorized

Consider the following transactions for Judy’s Sofas:

(a) Incurred and paid Web site expenses, $2,900.

(b) Incurred manufacturing wages of $15,000, 60% of which was direct labor and 40% of which was indirect labor.

(c)Purchased materials on account, $24,000.

(d) Used in production: direct materials, $9,500; indirect materials, $4,500.

(e) Recorded manufacturing overhead: depreciation on plant, $10,000; plant insurance, $1,300; plant property tax, $4,200 (credit Property tax payable).

(f) Allocated manufacturing overhead to jobs, 250% of direct labor costs.

(g) Completed production, $38,000.

(h) Sold inventory on account, $20,000; cost of goods sold, $10,000.

(i) Journalized the closing of the manufacturing overhead account.

Requirement

1. Journalize the transactions in Judy’s general journal.

darby electronics manufactures two large screen television model 282135

Aug 29, 2021 | Uncategorized

Darby Electronics manufactures two large screen television models: the Royale which sells for $1,500, and a new model, the Majestic, which sells for $1,200.The production cost per unit for each model in 2010 was as follows.

?

In 2010, Darby manufactured 30,000 units of the Royale and 10,000 units of the Majestic. The overhead rate of $40 per direct labor hour was determined by dividing total expected manufacturing overhead of $7,600,000 by the total direct labor hours (190,000) for the two models. The gross profit on the model was: Royale $500 ($1,500 _ $1,000) and Majestic $540 ($1,200 _ $660). Because of this difference, management is considering phasing out the Royale model and increasing the production of the Majestic model. Before finalizing its decision, management asks the controller, Marie Stumfall, to prepare an analysis using activity based costing. Marie accumulates the following information about overhead for the year ended December 31, 2010.

?

The cost driver volume for each product was:

?

Instructions

(a) Assign the total 2010 manufacturing overhead costs to the two products using activity based costing (ABC).

(b) What was the cost per unit and gross profit of each model using ABC costing?

(c) Are management’s future plans for the two modelssound?

memo assume that you have decided that there are significant weaknesses in the physi 282157

Aug 29, 2021 | Uncategorized

Question #1

Assume that you have decided that there are significant weaknesses in the physical controls over inventory that would be reduced with a new AIS that supports JIT inventories. Write a memorandum to the CFO describing how this might affect the inventory observation.

Remember: Your response will be graded for both technical relevance and writing skills. For writing skills you should demonstrate an ability to develop your ideas, organize them and express them clearly. Your memo should be no more than one page in length.

Document Preview:

Question #1 Assume that you have decided that there are significant weaknesses in the physical controls over inventory that would be reduced with a new AIS that supports JIT inventories. Write a memorandum to the CFO describing how this might affect the inventory observation. Remember: Your response will be graded for both technical relevance and writing skills. For writing skills you should demonstrate an ability to develop your ideas, organize them and express them clearly. Your memo should be no more than one page in length. To: Chief Financial Officer From: You Re: Inventory Controls

Attachments:

Question Memo….doc

domino foods inc manufactures a sugar product by a continuous 282172

Aug 29, 2021 | Uncategorized

Domino Foods, Inc., manufactures a sugar product by a continuous process, involving three production departments—Refining, Sifting, and Packing. Assume that records indicate that direct materials, direct labor, and applied factory overhead for the first department, Refining, were $355,000, $132,000, and $93,600, respectively. Also, work in process in the Refining Department at the beginning of the period totaled $25,500, and work in process at the end of the period totaled $31,200.

Journalize the entries to record

(a) The flow of costs into the Refining Department during the period for

(1) Direct materials,

(2) Direct labor, and

(3) Factory overhead, and

(b) The transfer of production costs to the second department, Sifting.

ernie els has formulated the following list of statements about 282191

Aug 29, 2021 | Uncategorized

Ernie Els has formulated the following list of statements about contemporary developments in managerial accounting.

1. Just in time processing results in a push approach; that is, raw materials are pushed through each process.

2. A primary objective of just in time processing is to eliminate all manufacturing inventories.

3. A major disadvantage of just in time processing is lower product quality.

4. A primary benefit of activity based costing is more accurate and meaningful product costing.

5. A major advantage of activity based costing is that it uses a single unit level basis, such as direct labor or machine hours, to allocate overhead. Identify each statement as true or false. If false, indicate how to correct the statement to make it true.

Aug 29, 2021 | Uncategorized

Found Sound Company mass produces miniature speakers for personal sound systems. The following cost information is available for June 2010:

Beginning inventory direct material cost …………………………$4,133.20

Beginning inventory conversion cost …………………………… 873.10

Direct material issued during June ………………………………62,928.00

Direct labor incurred during June ……………………………….13,070.00

Overhead applied during June …………………………………..10,356.00

On June 1, the company had 1,000 units in process, which were 60 percent complete as to material and 30 percent complete as to conversion. Found Sound started 8,400 units into process during June and had 300 units still in process on June 30. The ending WIP units were 80 percent complete as to material and 70 percent complete as to conversion.

a. Compute the unit costs for June under the weighted average method for direct material and for conversion.

b. Determine the cost transferred out for June using the weighted average method.

c. Determine the cost of June 30 ending inventory using the weighted average method.

d. Compute the unit costs for June under the FIFO method for direct material and for conversion.

e. Determine the total costs transferred to Finished Goods Inventory during June using the FIFO method.

f. Determine the cost of June 30 ending inventory using the FIFO method.

g. Prepare the entries for the direct material, direct labor, and overhead cost assigned to production during June as well as the transfer of the completed goods during June using the weighted average method.

costing accounting show working please will award full point 446328

Aug 29, 2021 | Uncategorized

A customer has requested that Inga Corporation fill a special order for 3,000 units of product K81 for $30 a unit. While the product would be modified slightly for the special order, product K81’s normal unit product cost is $21.30:

Direct materials	$ 5.40
Direct labor	6.00
Variable manufacturing overhead	2.50
Fixed manufacturing overhead	7.40
Unit product cost	$21.30

Direct labor is a variable cost. The special order would have no effect on the company’s total fixed manufacturing overhead costs. The customer would like modifications made to product K81 that would increase the variable costs by $1.00 per unit and that would require an investment of $14,000 in special molds that would have no salvage value.

This special order would have no effect on the company’s other sales. The company has ample spare capacity for producing the special order. If the special order is accepted, the company’s overall net operating income would increase (decrease) by:

	A $14,200
	B $31,300
	C $(13,700)
	D $(2,800)

e4 12 preparing a worksheet 446341

Aug 29, 2021 | Uncategorized

Data for the unadjusted trial balance of Mexican Riviera Tanning Salon at March 31, 2012, follow.

Cash 13,000

Equiptment 66,500

Accumulated Depreciation 18,500

Accounts Payable 3,200

Supplies 1,400

Neeland, capital 11,500

Service Revenue 89, 900

Salary Expense 42,200

Depreciation Expense

Supplies Expense

Neeland, drawing

Adjusting data for March 2012 are:

a) Accrued Service Revenue, 2,600

b) Supplies used in operations, 400

c) Accrued Salary Expense, 1,700

d) Depreciation Expense, 4,100

Les Neeland, the owner, has received an offer to sell the company. He needs to know the net income for the month covered by these data.

Requirements:

1. Prepare the worksheet for Mexican Riviera Tanning Salon

2. How much was the net income/net loss for March

dawn vs cheatum 446344

Aug 29, 2021 | Uncategorized

Dawn is a driver for Fast as We Can Delivery. She is a long time employee and has the use of her delivery vehicle to get her to and from work. One evening after she completed her shift, Dawn is asked by her supervisor, Ian Smart, to drop off a special package at the DNA Laboratories, a research institute funded by the state. Rather than driving straight to DNA after work, Dawn stops at a supermarket to pick up a few things she needs at home. After leaving the supermarket and on the way to DNA, Dawn’s vehicle is involved in an accident with Mr. Dewey Cheatum. Mr. Cheatum seeks to bring an action against Dawn, DNA Labs, and Fast as We Can Deliver. Please discuss the potential liability in this case and the potential defenses that might be used by all the parties.

accounting 203 question 446346

Aug 29, 2021 | Uncategorized

Debra Manufacturing has identified that the cost of a new computer will be $120,000, but with the use of the new computer, net income will increase by $10,000 a year. If depreciation expense is $6,000 a year, the cash payback period is:

7.5 years.

12 years.

20 years.

30 years.

accounting help i started it 446348

Aug 29, 2021 | Uncategorized

On December 1, 2011, John and Patty Driver formed a corporation called Susquehanna Equipment Rentals. The new corporation was able to begin operations immediately by purchasing the assets and taking over the location of Rent It, an equipment rental company that was going out of business. The newly formed company uses the following accounts:

Cash	Capital Stock
Accounts Receivable	Retained Earnings
Prepaid Rent	Dividends
Unexpired Insurance	Income Summary
Office Supplies	Rental Fees Earned
Rental Equipment	Salaries Expense
Accumulated Depreciation: Rental Equipment	Maintenance Expense
Notes Payable	Utilities Expense
Accounts Payable	Rent Expense
Interest Payable	Office Supplies Expense
Salaries Payable	Depreciation Expense
Dividends Payable	Interest Expense
Unearned Rental Fees	Income Taxes Expense
Income Taxes Payable

The corporation performs adjusting entries monthly. Closing entries are performed annually on December 31. During December, the corporation entered into the following transactions:

Dec.	1	Issued to John and Patty Driver 24,000 shares of capital stock in exchange for a total of $240,000 cash.
Dec.	1	Purchased for $201,600 all of the equipment formerly owned by Rent It. Paid $134,000 cash and issued a one year note payable for $67,600. The note, plus all 12 months of accrued interest, are due November 30, 2012.
Dec.	1	Paid $9,900 to Shapiro Realty as three months%u2019 advance rent on the rental yard and office formerly occupied by Rent It.
Dec.	4	Purchased office supplies on account from Modern Office Co., $1,900. Payment due in 30 days. (These supplies are expected to last for several months; debit the Office Supplies asset account.)
Dec.	8	Received $8,700 cash as advance payment on equipment rental from McNamer Construction Company. (Credit Unearned Rental Fees.)
Dec.	12	Paid salaries for the first two weeks in December, $4,400.
Dec.	15	Excluding the McNamer advance, equipment rental fees earned during the first 15 days of December amounted to $18,600, of which $12,600 was received in cash.
Dec.	17	Purchased on account from Earth Movers, Inc., $900 in parts needed to repair a rental tractor. (Debit an expense account.) Payment is due in 10 days.
Dec.	23	Collected $2,200 of the accounts receivable recorded on December 15.
Dec.	26	Rented a backhoe to Mission Landscaping at a price of $270 per day, to be paid when the backhoe is returned. Mission Landscaping expects to keep the backhoe for about two or three weeks.
Dec.	26	Paid biweekly salaries, $4,400.
Dec.	27	Paid the account payable to Earth Movers, Inc., $900.
Dec.	28	Declared a dividend of 10 cents per share, payable on January 15, 2012.
Dec.	29	Susquehanna Equipment Rentals was named, along with Mission Landscaping and Collier Construction, as a co defendant in a $30,000 lawsuit filed on behalf of Kevin Davenport. Mission Landscaping had left the rented backhoe in a fenced construction site owned by Collier Construction. After working hours on December 26, Davenport had climbed the fence to play on parked construction equipment. While playing on the backhoe, he fell and broke his arm. The extent of the company%u2019s legal and financial responsibility for this accident, if any, cannot be determined at this time. ( Note: This event does not require a journal entry at this time, but may require disclosure in notes accompanying the statements.)
Dec.	29	Purchased a 12 month public liability insurance policy for $9,360. This policy protects the company against liability for injuries and property damage caused by its equipment. However, the policy goes into effect on January 1, 2012, and affords no coverage for the injuries sustained by Kevin Davenport on December 26.
Dec.	31	Received a bill from Universal Utilities for the month of December, $650. Payment is due in 30 days.
Dec.	31	Equipment rental fees earned during the second half of December amounted to $20,200, of which $15,900 was received in cash.

Data for Adjusting Entries

a.	The advance payment of rent on December 1 covered a period of three months.
b.	The annual interest rate on the note payable to Rent It is 6 percent.
c.	The rental equipment is being depreciated by the straight line method over a period of eight years.
d.	Office supplies on hand at December 31 are estimated at $600.
e.	During December, the company earned $3,700 of the rental fees paid in advance by McNamer Construction Company on December 8.
f.	As of December 31, six days%u2019 rent on the backhoe rented to Mission Landscaping on December 26 has been earned.
g.	Salaries earned by employees since the last payroll date (December 26) amounted to $1,200 at month end.
h.	It is estimated that the company is subject to a combined federal and state income tax rate of 40 percent of income before income taxes (total revenue minus all expenses other than income taxes). These taxes will be payable in 2012 Please prepare adjusting entries and prepare closing entries and post ledger accounts

safety chemical produces and sells an ice melting granular used 281875

Aug 29, 2021 | Uncategorized

Safety Chemical produces and sells an ice melting granular used on roadways and sidewalks in winter. It annually produces and sells about 100 tons of its granular. In its nine year history, the company has never reported a net loss. However, because of this year’s unusually mild winter, projected demand for its product is only 60 tons. Based on its predicted production and sales of 60 tons, the company projects the following income statement (under absorption costing).

Sales (60 tons at $21,000 per ton) . . . . . . . . . . . . . . . . . $1,260,000

Cost of goods sold (60 tons at $16,000 per ton) . . . . . . 960,000

Gross margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300,000

Selling and administrative expenses . . . . . . . . . . . . . . . 318,600

Net loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (18,600)

Its product cost information follows and consists mainly of fixed cost because of its automated production process requiring expensive equipment.

Variable direct labor and material costs per ton . . . . . . . . $ 3,500

Fixed cost per ton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,500

Total product cost per ton . . . . . . . . . . . . . . . . . . . . . . . $16,000

Selling and administrative expenses consist of variable selling and administrative expenses of $310 per ton and fixed selling and administrative expenses of $300,000 per year. The company’s president is concerned about the adverse reaction from its creditors and shareholders if the projected net loss is reported. The operations manager mentions that since the company has large storage capacity, it can report a net income by keeping its production at the usual 100 ton level even though it expects to sell only 60 tons. The president was puzzled by the suggestion that the company can report income by producing more without increasing sales.

Required

1. Can the company report a net income by increasing production to 100 tons and storing the excess production in inventory? Your explanation should include an income statement (using absorption costing) based on production of 100 tons and sales of 60 tons.

2. Should the company produce 100 tons given that projected demand is 60 tons? Explain, and also refer to any ethical implications of such a managerial decision.

sierra company incurs the following costs to produce and sell 281882

Aug 29, 2021 | Uncategorized

Sierra Company incurs the following costs to produce and sell a single product.

During the last year, 25,000 units were produced and 22,000 units were sold. The Finished Goods inventory account at the end of the year shows a balance of $72,000 for the 3,000 unsold units.

Required;

1. Is the company using absorption costing or variable costing to cost units in the Finished Goods inventory account? Show computations to support your answer.

2. Assume that the company wishes to prepare financial statements for the year to issue to its stockholders.

a. Is the $72,000 figure for Finished Goods inventory the correct amount to use on these statements for external reporting purposes? Explain.

b. At what dollar amount should the 3,000 units be carried in the inventory for external reportingpurposes?

spicer company produces and sells wooden pallets that are used 281890

Aug 29, 2021 | Uncategorized

Spicer Company produces and sells wooden pallets that are used for moving and stacking materials. The operating costs for the past year were as follows:

Variable costs per unit:

Direct materials ………………$ 2.45

Direct labor …………………….2.10

Variable overhead ………………0.25

Variable selling …………………0.30

Fixed costs per year:

Fixed overhead …………….180,000

Selling and administrative …..56,000

During the year, Spicer produced 200,000 wooden pallets and sold 208,000 at $9 each. Spicer had 11,300 pallets in beginning finished goods inventory; costs have not changed from last year to this year. An actual cost system is used for product costing.

Required:

1. What is the per unit inventory cost that will be reported on Spicer’s balance sheet at the end of the year? How many units are in ending inventory? What is the total cost of ending inventory?

2. Calculate absorption costing income.

3. What would the per unit inventory cost be under variable costing? Does this differ from the unit cost computed in Requirement 1? Why?

4. Calculate variable costing income.

5. Suppose that Spicer Company had sold 196,700 pallets during the year. What would absorption costing income have been? Variable costing income?

summit manufacturing inc produces snow shovels 281891

Aug 29, 2021 | Uncategorized

Summit Manufacturing, Inc produces snow shovels. The selling price per snow shovel is $30.00

Cash Involved in production are

Direct material $5

Direct labor $4

Variable manufacturing overhead $3

Total Variable manufacturing cost per unit $12

Total manufacturing overhead per year $180,000

In addition, the company had fixed selling and administrative costs of $160,000 and sells 37,000 snow shovels.

1. During the year, Summit produces 40,000 snow shovels and sells 37,000 snow shovels.

Required

What is the value of ending inventory using full costing?

2. During the year, Summit produces 40,000 snow shovels and sells 37,000 snow shovels.

Required

What is the value of ending inventory using variable costing?

3. During the year, Summit produces 40,000 snow shovels and sells 37,000 snow shovels.

Required

Calculate the difference in full costing net income and variable costing net income preparing either income statement.

4. During the year, Summit produces 40,000 snow shovels and sells 37,000 snow shovels.

Required

What is cost goods sold using full costing?

5. During the year, Summit produces 40,000 snow shovels and sells 37,000 snow shovels.

Required

What is variable cost of goods sold?

6. During the year, Summit produces 40,000 snow shovels and sells 37,000 snow shovels.

Required

What is net income using full costing?

7. During the year, Summit produces 40,000 snow shovels and sells 37,000 snow shovels.

Required

What is net income variable costing?

8. During the year, Summit produces 40000 snow shovels and sells 37,000 snow shovels. How much fixed manufacturing overhead is in ending inventory under full costing?

Compare this amount to the difference in the net income calculated in exercise 5 13.

tami tyler opened tami s creations inc a small manufacturing 281893

Aug 29, 2021 | Uncategorized

Tami Tyler opened Tami’s Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tyler’s personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University.

Ms. Tyler is discouraged over the loss shown for the quarter, particularly because she had planned to use the statement as support for a bank loan. Another friend, a CPA, insists that the company should be using absorption costing rather than variable costing and argues that if absorption costing had been used the company would probably have reported at least some profit for the quarter.

At this point, Ms. Tyler is manufacturing only one product, a swimsuit. Production and cost data relating to the swimsuit for the first quarter follow:

Required:

1. Complete the following:

a. Compute the unit product cost under absorption costing.

b. Redo the company’s income statement for the quarter using absorption costing.

c. Reconcile the variable and absorption costing net operating income (loss) figures.

2. Was the CPA correct in suggesting that the company really earned a ?oprofit?? for the quarter? Explain.

3. During the second quarter of operations, the company again produced 30,000 units but sold 32,000 units. (Assume no change in total fixed costs.)

a. Prepare a contribution format income statement for the quarter using variable costing.

b. Prepare an income statement for the quarter using absorption costing.

c. Reconcile the variable costing and absorption costing net operatingincomes.

the demand for solvent one of numerous products manufactured by 281907

Aug 29, 2021 | Uncategorized

The demand for solvent, one of numerous products manufactured by Mathews Industries Inc., has dropped sharply because of recent competition from a similar product. The company’s chemists are currently completing tests of various new formulas, and it is anticipated that the manufacture of a superior product can be started on May 1, one month hence. No changes will be needed in the present production facilities to manufacture the new product because only the mixture of the various materials will be changed. The controller has been asked by the president of the company for advice on whether to continue production during April or to suspend the manufacture of solvent until May 1. The controller has assembled the following pertinent data:

Mathews Industries Inc.

Income Statement—Solvent

For the Month Ended March 31, 2011

Sales (2,500 units) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$175,000

Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156,500

Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 18,500

Selling and administrative expenses . . . . . . . . . . . . . . . . . . . . . 36,600

Loss from operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ (18,100)

The production costs and selling and administrative expenses, based on production of 2,500 units in March, are as follows:

Direct materials …………………………………………$27.30 per unit

Direct labor …………………………………………….. 9.50 per unit

Variable manufacturing cost …………………………… 9.00 per unit

Variable selling and administrative expenses ………….. 5.00 per unit

Fixed manufacturing cost ………………………………. 42,000 for March

Fixed selling and administrative expenses ……………… 24,100 for March

Sales for April are expected to drop about 25% below those of the preceding month. No significant changes are anticipated in the fixed costs or variable costs per unit. No extra costs will be incurred in discontinuing operations in the portion of the plant associated with solvent. The inventory of solvent at the beginning and end of April is expected to be inconsequential.

Instructions

1. Prepare an estimated income statement in absorption costing form for April for solvent, assuming that production continues during the month. Round amounts to two decimals.

2. Prepare an estimated income statement in variable costing form for April for solvent, assuming that production continues during the month. Round amounts to two decimals.

3. What would be the estimated loss in income from operations if the solvent production were temporarily suspended for April?

4. What advice should the controller give to management?

the following data were adapted from a recent income statement 281910

Aug 29, 2021 | Uncategorized

The following data were adapted from a recent income statement of Procter & Gamble Company: (in millions)

Net sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $76,476

Operating costs:

Cost of products sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $36,686

Marketing, administrative, and other expenses . . . . . . . . . . . . . . . . . . . . . . 24,340

Total operating costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $61,026

Income from operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15,450

Assume that the variable amount of each category of operating costs is as follows: (in millions)

Cost of products sold. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $20,500

Marketing, administrative, and other expenses . . . . . . . . . . . . . . . . . . . 9,700

a. Based on the above data, prepare a variable costing income statement for Procter & Gamble Company, assuming that the company maintained constant inventory levels during the period.

b. If Procter & Gamble reduced its inventories during the period, what impact would that have on the income from operations determined under absorption costing?

the management of mid atlantic railroad company introduced in ex 281918

Aug 29, 2021 | Uncategorized

The management of Mid Atlantic Railroad Company introduced in Exercise 20 20 improved the profitability of the Boston/Philadelphia route in June by reducing the price of a railcar from $ 614 to 556. This price reduction increased the demand for rail services. Thus, the number of railcar increased by 236 railcars to a total of 768 railcars. This was accomplished by increasing the size of each train but not the number the trains. Thus, the number of train miles was unchanged. All the activity rats remained unchanged.

(a) Prepare a contribution margin report for the Boston/Philadelphia route for June. Calculate the contribution margin ratio in percentage terms to one decimal place.

(b) Prepare a contribution margin analysis to evaluate management’s actions in June. Assume that the June planned quantity, price, and unit cost was the same as May.

the outdoor division of rugged inc uses absorption costing for 281920

Aug 29, 2021 | Uncategorized

The Outdoor Division of Rugged Inc. uses absorption costing for profit reporting. The general manager of the Outdoor Division is concerned about meeting the income objectives of the division. At the beginning of the reporting period, the division had an adequate supply of inventory. The general manager has decided to increase production of goods in the plant in order to allocate fixed manufacturing cost over a greater number of units. Unfortunately, the increased production cannot be sold and will increase the inventory. However, the impact on earnings will be positive because the lower cost per unit will be matched against sales. The general manager has come to Bill Clark, the controller, to determine exactly how much additional production is required in order to increase net income enough to meet the division’s profit objectives. Clark analyzes the data and determines that the inventory will need to be increased by 30% in order to absorb enough fixed costs and meet the income objective. Clark reports this information to the division manager.

Discuss whether Clark is acting in an ethical manner.

the questions below pertain to two different scenarios involving 281921

Aug 29, 2021 | Uncategorized

The questions below pertain to two different scenarios involving a manufacturing company. In each scenario, the cost structure of the company is constant from year to year. Selling prices, unit variable costs, and total fixed costs are the same in every year. However, unit sales and/or unit production levels may vary from year to year.

Required:

1. Consider the following data for scenario A:

a. Were unit sales constant from year to year? Explain.

b. What was the relation between unit sales and unit production levels in each year? For each year, indicate whether inventories grew or shrank.

2. Consider the following data for scenario B:

a. Were unit sales constant from year to year? Explain.

b. What was the relation between unit sales and unit production levels in each year? For each year, indicate whether inventories grew or shrank.

3. Given the patterns of net operating income in scenarios A and B above, which costing method, variable costing or absorption costing, do you believe provides a better reflection of economic reality?Explain.

these statements can t be right said ben yoder president 281922

Aug 29, 2021 | Uncategorized

These statements can’t be right, said Ben Yoder, president of Rayco, Inc. ?oOur sales in the second quarter were up by 25% over the first quarter, yet these income statements show a precipitous drop in net operating income for the second quarter. Those accounting people have fouled something up.?? Mr. Yoder was referring to the following statements (absorption costing basis):

After studying the statements briefly, Mr. Yoder called in the controller to see if the mistake in the second quarter could be located before the figures were released to the press. The controller stated, ?oI’m sorry to say that those figures are correct, Ben. I agree that sales went up during the second quarter, but the problem is in production. You see, we budgeted to produce 15,000 units each quarter, but a strike on the west coast among some of our suppliers forced us to cut production in the second quarter back to only 9,000 units. That’s what caused the drop in net operating income.?? Mr. Yoder was confused by the controller’s explanation. He replied, ?oThis doesn’t make sense. I ask you to explain why net operating income dropped when sales went up and you talk about production! So what if we had to cut back production? We still were able to increase sales by 25%. If sales go up, then net operating income should go up. If your statements can’t show a simple thing like that, then it’s time for some changes in your department!?? Budgeted production and sales for the year, along with actual production and sales for the first two quarters, are given below:

The company’s plant is heavily automated, and fixed manufacturing overhead amounts to $180,000 each quarter. Variable manufacturing costs are $8 per unit. The fixed manufacturing overhead is applied to units of product at a rate of $12 per unit (based on the budgeted production shown on the prior page). Any underapplied or overapplied overhead is closed directly to cost of goods sold for the quarter. The company had 4,000 units in inventory to start the first quarter and uses the FIFO inventory flow assumption. Variable selling and administrative expenses are $5 per unit.

Required:

1. What characteristic of absorption costing caused the drop in net operating income for the second quarter and what could the controller have said to explain the problem?

2. Prepare a contribution format variable costing income statement for each quarter.

3.Reconcile the absorption costing and the variable costing net operating income figures for each quarter.

4. Identify and discuss the advantages and disadvantages of using the variable costing method for internal reporting purposes.

5. Assume that the company had introduced Lean Production at the beginning of the second quarter, resulting in zero ending inventory. (Sales and production during the first quarter remain the same.)

a. How many units would have been produced during the second quarter under Lean Production?

b. Starting with the third quarter, would you expect any difference between the net operating income reported under absorption costing and under variable costing? Explain why there would or would not be anydifference.

this makes no sense at all said bill sharp president 281926

Aug 29, 2021 | Uncategorized

This makes no sense at all, said Bill Sharp, president of Essex Company. ?oWe sold the same number of units this year as we did last year, yet our profits have more than doubled. Who made the goof—the computer or the people who operate it??? The statements to which Mr. Sharp was referring are shown below (absorption costing basis):

The statements above show the results of the first two years of operation. In the first year, the company produced and sold 20,000 units; in the second year, the company again sold 20,000 units, but it increased production as shown below:

Essex Company applies fixed manufacturing overhead costs to its only product on the basis of each year’s production. Thus, a new fixed manufacturing overhead rate is computed each year.

Required:

1 Compute the unit product cost for each year under:

a. Absorption costing.

b.Variable costing.

2.Prepare a contribution format variable costing income statement for each year.

3. Reconcile the variable costing and absorption costing net operating income figures for each year.

4. Explain to the president why, under absorption costing, the net operating income for Year 2 was higher than the net operating income for Year 1, although the same number of units was sold in each year.

5. a. Explain how operations would have differed in Year 2 if the company had been using Lean Production and ending inventories had been eliminated.

b. If Lean Production had been used during Year 2, what would the company’s net operating income have been under absorption costing? Explain the reason for any difference between this income figure and the figure reported by the company in the statementsabove.

variable and absorption costing unit product costs and income 281934

Aug 29, 2021 | Uncategorized

Variable and Absorption Costing Unit Product Costs and Income Statements; Explanation of Difference in Net Operating Income High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation:

Management is anxious to see how profitable the new camp cot will be and has asked that an income statement be prepared for May.

Required:

1. Assume that the company uses absorption costing.

a. Determine the unit product cost.

b. Prepare an income statement for May.

2. Assume that the company uses variable costing.

a. Determine the unit product cost.

b. Prepare a contribution format income statement for May.

3. Explain the reason for any difference in the ending inventory balances under the two costing methods and the impact of this difference on reported net operatingincome.

whirlpool corporation had the following abbreviated income state 281983

Aug 29, 2021 | Uncategorized

Whirlpool Corporation had the following abbreviated income statement for a recent year: (in millions)

Net sales ………………………………………………$19,408

Cost of goods sold …………………………………… 16,517

Selling administrative and other expenses ………….. 1,736

Total expenses ………………………………………$18,253

Income from operations ……………………………. $1,155

Assume that there were $4,250 million fixed manufacturing costs and $1,000 million fixed selling, administrative, and other costs for the year. The finished goods inventories at the beginning and end of the year from the balance sheet were as follows:

January 1 …………………………………$2,350 million

December 31 …………………………….$2,660 million

Assume that 30% of the beginning and ending inventory consists of fixed costs. Assume work in process and materials inventory were unchanged during the period.

a. Prepare an income statement according to the variable costing concept for Whirlpool Corporation for the recent year.

b. Explain the difference between the amount of income from operations reported under the absorption costing and variable costing concepts.

whitman company has just completed its first year of operations 281984

Aug 29, 2021 | Uncategorized

Whitman Company has just completed its first year of operations. The company’s absorption costing income statement for the year appears below:

The company’s selling and administrative expenses consist of $210,000 per year in fixed expenses and $2 per unit sold in variable expenses. The $16 per unit product cost given above is computed as follows:

Required:

1. Redo the company’s income statement in the contribution format using variable costing.

2. Reconcile any difference between the net operating income on your variable costing income statement and the net operating income on the absorption costing income statementabove.

accounting 446189

Aug 29, 2021 | Uncategorized

Ceiling Fans by Ike’s overhead budget for 2009 was as follows: Factory supervision $300,000 Utilities costs 150,000 Insurance 28,000 Property taxes 22,000 Depreciation 100,000 Total $600,000 600,000 units were produced in 2009. Direct labor cost is $18,000,000. For both 2009 and 2010, each unit required 3 direct labor hours at $10 per hour. In 2010, property taxes, insurance, and depreciation are expected to stay at 2009 levels. Utilities costs vary proportionally with units produced. Factory supervision increases by increments of $30,000 for every 200,000 increase in direct labor hours. The 2010 expected production is 1,200,000 units.What will be the value for utilities costs in the 2010 overhead budget? Answer a. $300,000 b. $450,000 c. $420,000 d. $150,000

managerial accounting 446195

Aug 29, 2021 | Uncategorized

Its certainly is nice to see that small variance on the income statement after all the trouble we%u2019ve had lately in controlling manufacturing costs, said Linda White, vice president of Molina Company. %u201CThe $32,400 overall manufacturing variance reported last period is well below the 4% limit we have set for variances. We need to congratulate everybody on a job well done.

The company produces and sells a single product. The standard cost card for the product follows:

Standard Cost Card Per Unit
Direct materials, 4.00 yards at $3.40 per yard	$	13.60
Direct labor, 2.5 direct labor hours at $12.00 per direct labor hour		30.00
Variable overhead, 2.5 direct labor hours at $1.60 per direct labor hour		4.00
Fixed overhead, 2.5 direct labor hours at $6.00 per direct labor hour		15.00

Standard cost per unit	$	62.60

The following additional information is available for the year just completed:

a.	The company manufactured 25,000 units of product during the year.

b.	A total of 97,000 yards of material was purchased during the year at a cost of $3.60 per yard. All of this material was used to manufacture the 25,000 units. There were no beginning or ending inventories for the year.

c.	The company worked 66,000 direct labor hours during the year at a cost of $11.80 per hour.

d.	Overhead cost is applied to products on the basis of standard direct labor hours. Data relating to manufacturing overhead costs follow:


Denominator activity level (direct labor hours)		60,000
Budgeted fixed overhead costs	$	360,000
Actual fixed overhead costs	$	357,200
Actual variable overhead costs	$	112,200

Required:
1.	Compute the direct materials price and quantity variances for the year. (Input all amounts as positive values. Leave no cells blank be certain to enter “0” wherever required. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Omit the “$” sign in your response.)


Direct materials quantity variance	$	(Click to select) F U None
Direct materials price variance	$	(Click to select) F U None

2.

Compute the direct labor rate and efficiency variances for the year. (Input all amounts as positive values. Leave no cells blank be certain to enter “0” wherever required. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Omit the “$” sign in your response.)


Direct labor efficiency variance	$	(Click to select) F U None
Direct labor rate variance	$	(Click to select) F U None

3.	For manufacturing overhead, compute the following:

a.

The variable overhead rate and efficiency variances for the year. (Input all amounts as positive values. Leave no cells blank be certain to enter “0” wherever required. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Omit the “$” sign in your response.)


Efficiency variance	$	(Click to select) F U None
Rate variance	$	(Click to select) F U None

b.

The fixed overhead budget and volume variances for the year. (Input all amounts as positive values. Leave no cells blank be certain to enter “0” wherever required. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Omit the “$” sign in your response.)


Volume variance	$	(Click to select) F U None
Budget variance	$	(Click to select) F U None

acct 2102 446196

Aug 29, 2021 | Uncategorized

Chan mass produces necklaces. Production occurs in three sequential production departments %u2013 Stringing, Clasping and Packaging. At the beginning of the period in Clasping 1400 physical units were in beginning inventory. During the period 1000 units were transferred in from the previous department. At the end of the period 2000 units remained in the ending inventory. Given the following information:

Transferred In: Total Equivalent Units were 2400 and Cost per Equivalent Unit were $9.60

Direct Material: Total Equivalent Units were 2400 and Cost per Equivalent Unit were $3.00

Conversion: Total Equivalent Units were 750 and Cost per Equivalent Unit were $2.50

1. 1. What percentage complete are the units in Ending Inventory in the Clasping Department with respect to Direct Material?

2. 2. The costs assigned to units in the Clasping Department%u2019s ending inventory is ______

3. The costs transferred to Packing during the period equals ________

Please show work. I will reward full points.

joint processed 446204

Aug 29, 2021 | Uncategorized

Chemy Corporation produces three products in a monthly joint production process. During the first stage of the process liquids and chemicals costing $68,100 are heated and three different compounds emerge: 3,000 gallons of Molecue worth $25 per gallon are created from the steam; 10,000 gallons of Borphue worth $15 are drained from the tank; and 1,000 gallons of the tank residue, labeled as Polygard, are sold as fertilizer for $5.50 per gallon. Before Molecue is sold, it must be purified in another process that costs $10,000, and before the Polygard fertilizer is sold, it must be bottled at a price of $1.50 per gallon. a. What is the profitability of the joint process? (Omit the “$” sign in your response.) Total profit $ b. Is it profitable to process Molecue further if it can be sold at split off for $5 per gallon? (Input all amounts as positive values. Omit the “$” sign in your response.) Incremental revenue to process further = $ ‘ $ = $ per gallon Af— 3,000 gallons = $ . Compare to incremental cost to process further = $10,000. Incremental profit to process further is $ . c. BioMorphs has an offer to buy Polygard bulk at the split off point without bottling for $3,500 per month. What is the incremental profit (loss) to BioMorphs if it accepts the offer? (Input the amount as positive value. Omit the “$” sign in your response.) $

target costing 446211

Aug 29, 2021 | Uncategorized

Choice Culinary Supply, Inc., sells restaurant equipment and supplies throughout most of the United States. Management is considering adding a gelato machine to its line of ice cream making machines. Management will negotiate the price of the gelato machine with its Italian manufacturer.

Management of Choice Culinary Supply believes the gelato machines can be sold to its customers in the United States for $3,795 each. At that price, annual sales of the gelato machine should be 80 units. If the gelato machine is added to Choice Culinary Supply’s product lines, the company will have to invest $50,000 in inventories and special warehouse fixtures. The variable cost of selling the gelato machines would be $350 per machine.

1.	If Choice Culinary Supply requires a 20% return on investment (ROI), what is the maximum amount the company would be willing to pay the Italian manufacturer for the gelato machines?

Maximum allowable purchase price per machine

$

2.	Management would like to know how the purchase price of the machines would affect Choice Culinary Supply%u2019s ROI. Compute the ROI for purchase prices between $2,400 and $3,400 per machine.

Purchase price	ROI
$2,400	%
$2,500	%
$2,600	%
$2,700	%
$2,800	%
$2,900	%
$3,000	%
$3,100	%
$3,200	%
$3,300	%
$3,400	%

prob1 446212

Aug 29, 2021 | Uncategorized

The City of Mirada wants to offer cable television to its residents in 2013. The city has approached a company called CableVision to run its cable operations. After negotiating with key parties, CableVision has made the following agreements:

Mirada will offer its residents a basic set of 25 cable television stations at a rate of $32.99 per month (all of the revenue will go to CableVision).
The City of Mirada will maintain the physical facilities, and CableVision will pay the city $120,000 per month plus $3.00 per cable subscriber per month.
CableVision will actually pay another company to broadcast the 25 channels and will pay this company an annual fixed fee of $700,000 plus a monthly amount of $7.50 per cable subscriber per month.

CableVision will incur additional operating costs for billing, program news mailings, etc. These costs will include a fixed component of $115,000 per month, and a variable component of 7.5% of monthly revenue.

CableVision has several questions about its monthly revenues, costs, and profits in 2013.

REQUIRED [ROUND YOUR ANSWER TO PART A, QUESTION 1 TO THE NEAREST CENT; ROUND ALL OTHER ANSWERS TO THE NEAREST UNIT OR NEAREST DOLLAR.]

Part A
1. What is the estimated monthly contribution margin per cable subscriber for CableVision in 2013?

2. What are the estimated total monthly fixed costs for CableVision in 2013?

Part B
3. What is CableVision’s estimated monthly operating income if 20,000 residents subscribe?

4. How many monthly subscribers would be required for CableVision to break even in 2013?

5. How many monthly subscribers would be required for CableVision to earn $26,000 per month in 2013?

6. Assuming a tax rate of 34%, what must revenue be in order for CableVision to earn $26,000 per month in 2013?

help 446224

Aug 29, 2021 | Uncategorized

Three former college classmates have decided to pool a variety of work experiences by opening a store near campus to sell wireless equipment to students. The business has been incorporated as University Wireless.

Required:
Several transactions occurred in March. Each is described separately in this folder. For each transaction, indicate the accounts that are affected, whether they increase or decrease, and the amount of the increase or

Transaction 1

On March 1, two former classmates invested a total of $22,000 in cash in exchange for 1,000 shares of stock each.
Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank
Dollar amount:
Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank
Dollar amount:
Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank
Dollar amount:
Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank
Dollar amount:
Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank
Dollar amount:

Transaction 2
The corporation quickly acquired $35,000 in inventory, 70% of which was acquired on open accounts that were payable after 30 days. The rest was paid for in cash.

Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank Dollar amount:

Transaction 3
A store was rented for $6,000 for the year. A lease was signed for one year on March 1. Rent for the first 4 months was paid in advance. [Note:Record the March 1 transaction first and the March 31 adjustment second.]
Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank Dollar amount: Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank Dollar amount: Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank Dollar amount: Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank Dollar amount: Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank Dollar amount:

8

Transaction 4

Advertising was purchased for cash of $2,500 from a newspaper owned by one of the stockholders; additional advertising services of $5,000 were acquired on account. [Note: Combine both transactions into one entry]

ACCount: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank Dollar amount:

Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank
Dollar amount:
Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank
Dollar amount:
Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank
Dollar amount:
Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank
Dollar amount:

Transaction 5
Sales were $64,000. Cost of merchandise sold was 70% of its sales price. 30% of the sales were for cash. [Note: Record the sales transaction first and the expense transaction second]

Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank
Dollar amount:
Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank
Dollar amount:
Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank
Dollar amount:
Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank
Dollar amount:
Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank
Dollar amount:
Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank
Dollar amount:

Tries 0/8

Transaction 6
Wages and salaries incurred in March amounted to $10,000, of which $4,600 was paid.

Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank
Dollar amount:
Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank
Dollar amount:
Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank
Dollar amount:
Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank
Dollar amount:
Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank
Dollar amount:

Tries 0/8

Transaction 7

Miscellaneous expenses paid for in cash were $1,700.
Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank
Dollar amount:
Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank
Dollar amount:
Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank
Dollar amount:
Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank
Dollar amount:
Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank
Dollar amount:

Tries 0/8

Transaction 8

On March 1, fixtures and equipment were purchased for $4,500 with a downpayment of $1,000 plus a $3,500 note payable in one year. Interest of 6.5% per year is due when the note is repaid. The estimated life of the fixtures and equipment is 8 years with no expected salvage value. Depreciation on the fixtures and equipment is computed on a straight line basis. [
Note: Record the March 1 equipment purchase first, then the March 31 depreciation adjusting entry, and finally the March 31 interest adjusting entry.
Also, round all answers to the nearest cent.]
Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank
Dollar amount:
Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank
Dollar amount:
Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank
Dollar amount:
Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank
Dollar amount:
Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank
Dollar amount:
Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank
Dollar amount:
Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank
Dollar amount:
Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank
Dollar amount:

Transaction 9

Cash dividends totalling $4,600 were declared and paid to stockholders on March 31.
Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank
Dollar amount:
Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank
Dollar amount:
Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank
Dollar amount:
Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank
Dollar amount:
Account: Cash Accounts Receivable Inventory Prepaid Rent Fixtures and Equipment Accounts Payable Interest Payable Wages Payable Notes Payable Paid in Capital Retained Earnings Leave Blank
Dollar amount:

Tries 0/8

accounting question 446250

Aug 29, 2021 | Uncategorized

A company can produce and sell only one of the following two products:

	Machine Hours Required	Contribution Margin Per Unit
Product 1	3	$60
Product 2	2	$50

If the company has machine capacity of 2,000 hours, what is the total contribution margin of the product it should produce to maximize net income?

$32,000

$40,000

$48,000

$50,000

managerial accounting 446251

Aug 29, 2021 | Uncategorized

The EG Company produces and sells one product. The following data refer to the year just completed:


Beginning inventory		0
Units produced		28,100
Units sold		21,900

Sales price per unit	$	410
Selling and administrative expenses:
Variable per unit	$	23
Fixed (total)	$	306,600
Manufacturing costs:
Direct materials cost per unit	$	229
Direct labor cost per unit	$	58
Variable manufacturing overhead cost per unit	$	36
Fixed manufacturing overhead	$	421,500

Assume that direct labor is a variable cost.

Required:

a.	Compute the cost of a single unit of product under both the absorption costing and variable costing approaches.

b.	Prepare an income statement for the year using absorption costing.

c.	Prepare a contribution format income statement for the year using variable costing.

d.	Reconcile the absorption costing and variable costing net operating income figures in (b) and (c) above.

managerial accountin 446253

Aug 29, 2021 | Uncategorized

A company has three product lines, one of which reflects the following results:

Sales	$430,000
Variable expenses	250,000
Contribution margin	180,000
Fixed expenses	280,000
Net loss	$ (100,000)

If this product line is eliminated, 60% of the fixed expenses can be eliminated and the other 40% will be allocated to other product lines. If management decides to eliminate this product line, the company’s net income will

increase by $100,000.

decrease by $180,000.

decrease by $12,000.

increase by $12,000.

acct 2102 446263

Aug 29, 2021 | Uncategorized

A company uses the weighted average method in its processing costing system and a normal costing system in the application of manufacturing overhead in production. MOH costs are applied to production at a rate of $4 per machine hour. All direct materials are added at the beginning of the production process. The following data relate to the operation of the company’s first processing department for august 2012 Beginning WIP 800 units Started 16,000 Ending 300 units ‘ 40% complete with respect to conversion costs On July 31st, 1300 of direct materials and 2400 of conversion costs were assigned to units in ending inventory. During august 47,000 of direct materials were requested for production and 216,000 of direct labor costs were incurred. Actual machine hours logged during august were 70,300. The costs assigned to each completed and transferred out during august were

accounting statement of cash flow 446266

Aug 29, 2021 | Uncategorized

Here are comparative balance sheets for Syal Company.

SYAL COMPANY Comparative Balance Sheets December 31
Assets	2012		2011
Cash	$72,600		$22,270
Accounts receivable	85,590		76,280
Inventory	169,910		189,000
Land	75,730		101,590
Equipment	259,630		199,840
Accumulated depreciation%u2014equipment	(66,330	)	(31,530	)
Total	$597,130		$557,450
Liabilities and Stockholders%u2019 Equity
Accounts payable	$39,360		$47,480
Bonds payable	150,770		203,850
Common stock ($1 par)	217,390		172,210
Retained earnings	189,610		133,910
Total	$597,130		$557,450

Additional information:

1.		Net income for 2012 was $103,740.
2.		Cash dividends of $48,040 were declared and paid.
3.		Bonds payable amounting to $53,080 were redeemed for cash $53,080.
4.		Common stock was issued for $45,180 cash.
5.		No equipment was sold during 2012, but land was sold at cost.

Prepare a statement of cash flows for 2012 using the indirect method.

need help with this 446272

Aug 29, 2021 | Uncategorized

Complete the following worksheet for Danilo Enterprises.

Danilo Enterprises
Worksheet
For the Year Ended December 31, 2010

	Adjusted Trial Balance			Income Statement		Balance Sheet
Account Title	Debit	Credit	Debit		Credit	Debit	Credit
Cash	14,500
Accounts Receivable	7,500
Supplies	500
Equipment	20,500
Accumulated Depr Equip		15,000
Accounts Payable		9,500
Wages Payable		3,060
Tony Danilo, Capital		18,240
Tony Danilo, Drawing	1,000
Fees Earned		34,000
Wages Expense	18,000
Rent Expense	9,300
Depreciation Expense	8,500
Totals	79,800	79,800
Net Income (Loss)

acg 2021 ch 11 tvm a corporate charter specifies that the company may sell up to 25 446290

Aug 29, 2021 | Uncategorized

A corporate charter specifies that the company may sell up to 25 million shares of stock. The company sells 17 million shares to investors and later buys back 5.5 million shares.

The current number of outstanding shares after these transactions have been accounted for is:

rev: 03 03 2011

25.0 million shares.

13.0 million shares.

11.5 million shares.

8.0 million shares.

The number of issued shares after these transactions have been accounted for is:

rev: 03 03 2011

	12 million shares.
	20 million shares.
	13 million shares.
	17 million shares.

managerial accounting 446304

Aug 29, 2021 | Uncategorized

costello corporation manufactures a single product. The standard cost per unit of product is shown below:

Direct materials 2 pound plastic at $7.71 per pound $15.42

Direct labor 2.00 hours at $11.00 per hour $22.00

Variable Manufacturing overhead $12.00

Fixed Manufacturing overhead $16.00

Total standard cost per unit $65.42

The predetermined manufacturing overhead rate of $14 per direct labor hour ($28.00 / 2.00). It was computed from a master manufacturing overhead budget based on normal production of 10,200 direct labor hours (5,100 units for the month). The master budget showed total variable costs of $61,200 ($6.00 per hour) and total fixed overhead costs of $81,600 ($8.00 per hour). Actual costs for October in producing 4,200 units were as follows:

Direct materials (8,570 pounds) $67,189

Direct labor (8,270 hours) $93,368

Variable overhead $89,609

Fixed overhead $30,021

Total manufacturing costs $280,187

The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored.

A. Compute all of the materials and labor variances and favorable/unfavorable/neither

Total materials variances

Materials price variances

Materials quantity variances

Total labor variance

Labor price variance

Labor quantity variance

B. Compute the total overhead variance.

account 203 446306

Aug 29, 2021 | Uncategorized

Costs associated with two alternatives, code named Q and R, being considered by Corniel Corporation are listed below:

	Alternative Q		Alternative R
Supplies costs	$	77,000	$	68,000
Power costs	$	49,000	$	49,000
Inspection costs	$	29,000	$	44,000
Assembly costs	$	42,000	$	31,000

Required:

a.	Which costs are relevant and which are not relevant in the choice between these two alternatives?


Supplies costs
Power costs
Inspection costs
Assembly costs

b.	What is the differential cost of Alternative R over Alternative Q? (Negative amount should be indicated by a minus sign. Omit the “$” signs in your response.)

Differential cost

$

Part 5

Silmon Corporation makes a product with the following standard costs:

Inputs	Standard Quantity or Hours		Standard Price or Rate
Direct materials	4.3	grams	$	7.00	per gram
Direct labor	0.5	hours	$	14.00	per hour
Variable overhead	0.5	hours	$	4.00	per hour

In June the company produced 4,800 units using 21,890 grams of the direct material and 2,520 direct labor hours. During the month the company purchased 24,700 grams of the direct material at a price of $6.80 per gram. If materials used are more than the materials purchased, the additional amount is taken from inventory.

The actual direct labor rate was $14.60 per hour and the actual variable overhead rate was $3.90 per hour. The materials price variance is computed when materials are purchased. Variable overhead is applied on the basis of direct labor hours.

Required:

Compute the following variances for raw materials, direct labor, and variable overhead, assuming that the price variance for materials is recognized at point of purchase: (Input all amounts as positive values. Do not round intermediate calculations. Leave no cells blank be certain to enter “0” wherever required. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Omit the “$” sign in your response.)

Favor or Unfavorable


a.	Direct materials quantity variance	$
b.	Direct materials price variance	$
c.	Direct labor efficiency variance	$
e.	Direct labor rate variance	$
d.	Variable overhead efficiency variance	$
f.	Variable overhead rate variance	$

acct 203 446307

Aug 29, 2021 | Uncategorized

Costs associated with two alternatives, code named Q and R, being considered by Corniel Corporation are listed below:

	Alternative Q		Alternative R
Supplies costs	$	49,500	$	52,000
Power costs	$	33,000	$	33,000
Inspection costs	$	13,000	$	20,000
Assembly costs	$	26,000	$	15,000

Required:

a.	Which costs are relevant and which are not relevant in the choice between these two alternatives?


Supplies costs	(Click to select) Not relevant Relevant
Power costs	(Click to select) Relevant Not relevant
Inspection costs	(Click to select) Relevant Not relevant
Assembly costs	(Click to select) Relevant Not relevant

b.	What is the differential cost of Alternative R over Alternative Q? (Negative amount should be indicated by a minus sign. Omit the “$” signs in your response.)

Differential cost

$

accounting 446308

Aug 29, 2021 | Uncategorized

Craftmore Machining produces machine tools for the construction industry. The following details about overhead costs were taken from its company records.

Production Activity	Indirect Labor			Indirect Materials			Other Overhead
Grinding		$	350,000
Polishing					$	145,000
Product modification			500,000
Providing power								$	225,000
System calibration			460,000

Additional information on the drivers for its production activities follows.


Grinding	19,000	machine hours
Polishing	19,000	machine hours
Product modification	2,000	engineering hours
Providing power	17,000	direct labor hours
System calibration	950	batches

Required:
1.	Classify each activity as unit level, batch level, product level, or facility level.


Grinding	(Click to select) Unit level Product level Facility level Batch level
Polishing	(Click to select) Product level Facility level Unit level Batch level
Product modification	(Click to select) Batch level Product level Unit level Facility level
Providing power	(Click to select) Product level Facility level Batch level Unit level
System calibration	(Click to select) Facility level Unit level Product level Batch level

Answer choices for above question…… unit level batch level facility level product level

2.	Compute the activity overhead rates using ABC. Form cost pools as appropriate. (Round your answers to 2 decimal places. Omit the “$” sign in your response.)


Grinding & Polishing	$	per MH
Product modification	$	per Eng. Hr.
Providing power	$	per DLH
System calibration	$	per batch

	Job 3175		Job 4286
Number of units	150	units	1,875	units
Machine hours	300	MH	3,000	MH
Engineering hours	33	eng hours	32	eng. hours
Batches	10	batches	30	batches
Direct labor hours	450	DLH	4,050	DLH

3.	Determine overhead costs to assign to the following jobs using ABC. (Use the rates calculated in Part 2 and then round your intermediate calculations and your final answers to the nearest whole number. Omit the “$” sign in your response.)

	Job 3175	Job 4286
Total cost of job	$	$

4.	What is the overhead cost per unit for Job 3175? What is the overhead cost per unit for Job 4286? (Use the total job cost in Part 3 and then round your final answers to 2 decimal places. Omit the “$” sign in your response.)

	Job 3175	Job 4286
Average overhead cost per unit	$	$

5.

Assume if the company used a plantwide overhead rate based on direct labor hours, what is the overhead cost for each unit of Job 3175? Of Job 4286? (Round your cost per DLH to 2 decimal places, intermediate calculations to the nearest dollar amount and final answers to 2 decimal places. Omit the “$” sign in your response.)

	Job 3175	Job 4286
Average overhead cost per unit	$	$

accting 7 446315

Aug 29, 2021 | Uncategorized

Cretin Enterprises uses a predetermined overhead rate of $21.40 per direct labor hour. This predetermined rate was based on a cost formula that estimated $171,200 of total manufacturing overhead for an estimated activity level of 8,000 direct labor hours.

The company incurred actual total manufacturing overhead costs of $172,500 and 8,250 total direct labor hours during the period.

Required:
1.	Determine the amount of underapplied or overapplied manufacturing overhead for the period.(Input the amount as a positive value. Omit the “$” sign in your response.)

Manufacturing overhead (Click to select) underapplied overapplied

$

2.

Assuming that the entire amount of the underapplied or overapplied overhead is closed out to cost of goods sold, what would be the effect of the underapplied or overapplied overhead on the company’s gross margin for the period? (Input the amount as a positive value. Omit the “$” sign in your response.)

The gross margin would (Click to select) increase decrease by

$

managerial accounting 446318

Aug 29, 2021 | Uncategorized

Crydon, Inc., manufactures an advanced swim fin for scuba divers. Management is now preparing detailed budgets for the third quarter, July through September, and has assembled the following information to assist in preparing the budget:

a.	The Marketing Department has estimated sales as follows for the remainder of the year (in pairs of swim fins):

The selling price of the swim fins is $15 per pair.


July	6,000	October	4,000
August	7,000	November	3,000
September	5,000	December	3,000

b.	All sales are on account. Based on past experience, sales are expected to be collected in the following pattern:


43%	in the month of sale
47%	in the month following sale
10%	uncollectible

The beginning accounts receivable balance (excluding uncollectible amounts) on July 1 will be $137,000.

c.	The company maintains finished goods inventories equal to 9% of the following month%u2019s sales. The inventory of finished goods on July 1 will be 540 pairs.

d.

Each pair of swim fins requires 3 pounds of geico compound. To prevent shortages, the company would like the inventory of geico compound on hand at the end of each month to be equal to 20% of the following month%u2019s production needs. The inventory of geico compound on hand on July 1 will be 3,654 pounds.

e.	Geico compound costs $3.50 per pound. Crydon pays for 57% of its purchases in the month of purchase; the remainder is paid for in the following month. The accounts payable balance for geico compound purchases will be $11,300 on July 1.

Required:

1a.

Prepare a sales budget, by month and in total, for the third quarter.

	July	August	September	Quarter Total
Total budgeted sales	$	$	$	$

1b.

Prepare a schedule of expected cash collections, by month and in total, for the third quarter. (Leave no cells blank be certain to enter “0” wherever required. Do not round intermediate calculations.)

Schedule of Expected Cash Collections
	July	August	September	Quarter Total
Accounts receivable, beginning balance	$	$	$	$
July sales
August sales
September sales

Total cash collections	$	$	$	$

2.	Prepare a production budget for each of the months July through October. (Input all amounts as positive values.)

Production Budget
	July	August	September	October
Budgeted sales (pairs)
(Click to select) Deduct Add : (Click to select) Beginning inventory Ending inventory

Total needs
(Click to select) Deduct Add : (Click to select) Beginning inventory Ending inventory

Required production (pairs)

3a.

Prepare a direct materials budget for geico compound, by month and in total, for the third quarter. (Do not round intermediate calculations. Round your answers to the nearest dollar amount. Input all amounts as positive values.)

Direct Materials Budget
	July	August	September	Quarter Total
Production needs (lbs.)
(Click to select) Deduct Add : (Click to select) Beginning inventory Ending inventory

Total needs
(Click to select) Deduct Add : (Click to select) Beginning inventory Ending inventory

Raw materials to be purchased

Cost of raw materials to be purchased	$	$	$	$

3b.

Prepare a schedule of expected cash disbursements for geico compound, by month and in total, for the third quarter. (Do not round intermediate calculations. Round your answers to the nearest dollar amount. Leave no cells blank be certain to enter “0” wherever required.)

Schedule of Expected Cash Disbursements
	July	August	September	Quarter Total
Accounts payable, beginning balance	$	$	$	$
July purchases
August purchases
September purchases

Total cash payments	$	$	$	$

for which levels of output does ww experience increasing returns to scale 445931

Aug 29, 2021 | Uncategorized

Wolfsburg Wagon (WW) is a small automaker. The accompanying table shows WW’s long run average total cost.

Quantity of cars	LRATC of car
1 2	$30,000 20,000
3	15,000
4	12,000
5	12,000
6	12,000
7	14,000
8	18,000

a. For which levels of output does WW experience increasing returns to scale?

b. For which levels of output does WW experience decreasing returns to scale?

c. For which levels of output does WW experience constant returns to scale?

what is the effective annual rate for each option 446028

Aug 29, 2021 | Uncategorized

Consider the following options available to a mortgage borrower:

	Loan Amount	Interest Rate	Type of Mortgage	Discount Point
Option 1	$100,000	6.75%	30 yr fixed	none
Option 2	$150,000	6.25%	30 yr fixed	1
Option 3	$125,000	6.0%	30 yr fixed	2

What is the effective annual rate for each option?

you are working with a pool of 1 000 mortgages 446033

Aug 29, 2021 | Uncategorized

You are working with a pool of 1,000 mortgages. Each mortgage is for $100,000 and has a stated annual interest rate (nominal) of 6.00%. The mortgages are all 30 year fixed rate fully amortizing. Mortgage servicing fees are currently 0.25% annually. Complete the following table:

	(1)	(2)	(3)	(4)	(5)	(6)	(7)
Month	Beginning Balance	Required Payment	Interest	Principal	Expected Prepayment	Servicing Fees	Ending Balance
1	100,000,000		500,000	99,551	16,665		16,665
2					33,322		99,750,430

accounting question all help appreciated 446034

Aug 29, 2021 | Uncategorized

Average Rate of Return Method,Net Present Value Method, and Analysis

The capital investment committee of Cross Continent Trucking Inc. is considering two capital investments. The estimated income from operations and net cash flows from each investment are as follows:

	Warehouse		Tracking Technology
Year	Income from Operations	Net Cash Flow	Income from Operations	Net Cash Flow
1	$46,500	$150,000	$98,000	$240,000
2	46,500	150,000	74,000	203,000
3	46,500	150,000	37,000	143,000
4	46,500	150,000	16,000	98,000
5	46,500	150,000	7,500	66,000
Total	$232,500	$750,000	$232,500	$750,000

Each project requires an investment of $620,000. Straight line depreciation will be used, and no residual value is expected. The committee has selected a rate of 15% for purposes of the net present value analysis.

Present Value of $1 at Compound Interest
Year	6%	10%	12%	15%	20%
1	0.943	0.909	0.893	0.870	0.833
2	0.890	0.826	0.797	0.756	0.694
3	0.840	0.751	0.712	0.658	0.579
4	0.792	0.683	0.636	0.572	0.482
5	0.747	0.621	0.567	0.497	0.402
6	0.705	0.564	0.507	0.432	0.335
7	0.665	0.513	0.452	0.376	0.279
8	0.627	0.467	0.404	0.327	0.233
9	0.592	0.424	0.361	0.284	0.194
10	0.558	0.386	0.322	0.247	0.162

Required:

1a. Compute the average rate of return for each investment. If required, round your answer to one decimal place.

	Average Rate of Return
Warehouse	%
Tracking Technology	%

1b. Compute the net present value for each investment. Use the present value of $1 table present above.

	Warehouse	Tracking Technology
Present value of net cash flow total:	$	$
Less amount to be invested:	$	$
Net present value:	$	$

bags and luggage company road warrior 446041

Aug 29, 2021 | Uncategorized

The Bags and Luggage Company had the following account balances as of January 1:


Direct Materials Inventory	$	8,700
Work in Process Inventory		76,500
Finished Goods Inventory		53,000
Manufacturing Overhead		0

During the month of January, all of the following occurred:

1.	Direct labor costs were $46,000 for 1,800 hours worked.
2.	Direct materials costing $29,000 and indirect materials costing $4,000 were purchased.
3.	Sales commissions of $16,500 were earned by the sales force.
4.	$23,000 worth of direct materials were used in production.
5.	Advertising costs of $6,300 were incurred.
6.	Factory supervisors earned salaries of $11,797.
7.	Indirect labor costs for the month were $3,000.
8.	Monthly depreciation on factory equipment was $4,500.
9.	Utilities expense of $6,083 was incurred in the factory.
10.	Luggage with manufacturing costs of $69,000 were transferred to finished goods.
11.	Monthly insurance costs for the factory were $4,200.
12.	$5,000 in property taxes on the factory were incurred and paid.
13.	Luggage with manufacturing costs of $96,187 were sold for $174,886.

a.	Assume If Bags and Luggage assigns manufacturing overhead of $34,400, what will be the balances in the Direct Materials, Work in Process, and Finished Goods Inventory accounts at the end of January?


Direct materials inventory	$
Work in process inventory	$
Finished goods inventory	$

b.	As of January 31, what will be the balance in the Manufacturing Overhead account?

Manufacturing overhead

$

c.	What was Bags and Luggage’s operating income for January?

Operating income

$

Road Warrior Corporation began operations early in the current year, building luxury motor homes. During the year, the company started and completed 50 motor homes at a cost of $60,000 per unit. Of these, 48 were sold for $100,000 each and two remain in finished goods inventory. In addition, the company had six partially completed units in its factory at year end. Total costs for the year (summarized alphabetically) were as follows:


Direct materials used	$	781,000
Direct labor		921,000
Income tax expense		100,000
General and administrative expenses		500,000
Manufacturing overhead		1,770,000
Selling expenses		500,000

a.	Compute the total manufacturing costs charged to work in process for the current year:

Total manufacturing costs

$

b.	Compute the cost of finished goods manufactured for the current year:

Cost of finished goods manufactured

$

c.	Compute the cost of goods sold for the current year:

Cost of goods sold

$

d.	Compute the gross profit on sales for the current year: Gross profit on sales $

e.	Compute the ending inventories of (1) work in process and (2) finished goods for the current year:


(1)	Ending inventory of work in process	$
(2)	Ending inventory of finished goods	$

please help 446042

Aug 29, 2021 | Uncategorized

The Bags and Luggage Company had the following account balances as of January 1:


Direct Materials Inventory	$	8,700
Work in Process Inventory		76,500
Finished Goods Inventory		53,000
Manufacturing Overhead		0

During the month of January, all of the following occurred:

1.	Direct labor costs were $40,000 for 1,800 hours worked.
2.	Direct materials costing $28,000 and indirect materials costing $4,900 were purchased.
3.	Sales commissions of $16,000 were earned by the sales force.
4.	$22,000 worth of direct materials were used in production.
5.	Advertising costs of $6,300 were incurred.
6.	Factory supervisors earned salaries of $12,277.
7.	Indirect labor costs for the month were $3,000.
8.	Monthly depreciation on factory equipment was $4,500.
9.	Utilities expense of $6,977 was incurred in the factory.
10.	Luggage with manufacturing costs of $69,000 were transferred to finished goods.
11.	Monthly insurance costs for the factory were $4,200.
12.	$5,000 in property taxes on the factory were incurred and paid.
13.	Luggage with manufacturing costs of $90,604 were sold for $164,734.

a.	Assume If Bags and Luggage assigns manufacturing overhead of $34,400, what will be the balances in the Direct Materials, Work in Process, and Finished Goods Inventory accounts at the end of January?(Input all amounts as positive values. Omit the “$” sign in your response.)


Direct materials inventory	$
Work in process inventory	$
Finished goods inventory	$

b.	As of January 31, what will be the balance in the Manufacturing Overhead account? (Input all amounts as positive values. Omit the “$” sign in your response.)

Manufacturing overhead

$

c.	What was Bags and Luggage’s operating income for January? (Input all amounts as positive values.Omit the “$” sign in your response.)

Operating income

$

managerial accounting 446049

Aug 29, 2021 | Uncategorized

Banner Company produces three products: A, B, and C. The selling price, variable costs, and contribution margin for one unit of each product follow:

Due to a strike in the plant of one of its competitors, demand for the company%u2019s products far exceeds its capacity to produce. Management is trying to determine which product(s) to concentrate on next week in filling its backlog of orders. The direct labor rate is $5 per hour, and only 3,290 hours of labor time are available each week.

1. Compute the amount of contribution margin that will be obtained per hour of labor time spent on each product.

Contribution margin per labor hour: A $_____; B $_____; C $_____

2. By paying overtime wages, more than 3,290 hours of direct labor time can be made available next week. Up to how much should the company be willing to pay per hour in overtime wages as long as there is unfilled demand for the three products.

Maximum amount $_____ per hour

accounting help 446055

Aug 29, 2021 | Uncategorized

Barnum Distributors wants a projection of cash receipts and cash payments for the month of November. On November 28, a note will be payable in the amount of $98,500, including interest. The cash balance on November 1 is $29,600. Accounts payable to merchandise creditors at the end of October were $217,000.

The company’s experience indicates that 70 percent of sales will be collected during the month of sale, 20 percent in the month following the sale, and 7 percent in the second month following the sale; 3 percent will be uncollectible. The company sells various products at an average price of $11 per unit. Selected sales figures are as follows:

	Units
Sept.%u2212actual	40,000
Oct.%u2212actual	60,000
Nov.%u2212estimated	80,000
Dec.%u2212estimated	50,000
Total estimated for the current year	800,000

Because purchases are payable within 15 days, approximately 50 percent of the purchases in a given month are paid in the following month. The average cost of units purchased is $7 per unit. Inventories at the end of each month are maintained at a level of 2,000 units plus 10 percent of the number of units that will be sold in the following month. The inventory on October 1 amounted to 8,000 units.

Budgeted operating expenses for November are $220,000. Of this amount, $90,000 is considered fixed (including depreciation of $35,000). All operating expenses, other than depreciation, are paid in the month in which they are incurred.

The company expects to sell fully depreciated equipment in November for $8,400 cash.

Instructions

Prepare a cash budget for the month of November, supported by schedules of cash collections on accounts receivable and cash payments for purchases of merchandise. (Omit the “$” sign in your response.)

BARNUM DISTRIBUTORS Cash Budget For the Month Ended November 30, 20__
(Click to select) Collections on receivables Cash balance at end of month Payment on note payable Sale of fully depreciated equipment Cash balance at beginning of month		$
Receipts:
(Click to select) Cash balance at end of month Cash balance at beginning of month Payment on note payable Collections on receivables Sale of fully depreciated equipment	$
(Click to select) Cash balance at beginning of month Collections on receivables Payment on note payable Cash balance at end of month Sale of fully depreciated equipment

Total cash available		$
Payments:
(Click to select) Payments on operating expenses Sale of fully depreciated equipment Payment on note payable Collections on receivables Payments for purchases of merchandise	$
(Click to select) Sale of fully depreciated equipment Collections on receivables Payment on note payable Payments on operating expenses Payments for purchases of merchandise
(Click to select) Payments for purchases of merchandise Collections on receivables Payment on note payable Payments on operating expenses Sale of fully depreciated equipment

(Click to select) Collections on receivables Cash balance at end of month Payments on operating expenses Payment on note payable Cash balance at beginning of month		$

barry s burger shack template 446058

Aug 29, 2021 | Uncategorized

Barry’s Burger Shack

Barry’s Burger Shack operates a single location at NEU selling burgers, fries and sodas to

students and faculty. Revenues for 2012 were $90,000 with profits of $2,250; industry

benchmarks suggest profit margins should be close to 10% of revenue. Barry had noticed

an increasing number of complaints from customers over the quality of his burgers and the messiness of

the soda self service area and has hired you to estimate the cost of quality for his burger business.

Your analysis identified the following broad categories of quality costs in 2012:

1 One in 30 customers returned their burgers for a replacement due to burger being too greasy,

being served too cool, or served with wrong ingredients; cost to replace was ~$1,600 per year

2 Approximately 5% of burgers have to be scrapped during preparation process at an

estimated cost of about $1,200 per year; fries scrap cost about $600 per year

3 Barry uses a mystery shopper service to evaluate employee performance at an annual cost

of $600 per year

4 Barry purchased a special grille last year for $8,000 to reduce grease in burgers and to

ensure more consistent cooking temperature; Grille has an expected life of 5 years (SL depr.)

5 Barry spent $400 on training his cooking and serving staff

6 A customer sued Barry after finding a bandaid in her burger; Barry settled for $2000.

7 The self service soda area used 6,000 ounces of syrup at a cost of $0.25 per ounce for

5,000 paid sodas; each soda should use 1 ounce of syrup but the excess was spilled

8 Barry, whose annual salary with benefits was $18,000, spent approximately 15% of his time

inspecting burger production operations

Required:

Classify the above costs into the 4 categories of cost of quality; calculate the % of

revenue for each category and for total cost of quality. What recommendations

would you make to Barry based on your analysis to help him improve profitability?

Internal External

Prevention Appraisal Failure Failure Total

1 Returned burgers $

2 Scrapped burgers $

3 Mystery shopper $

4 Special grille (depr. = $8,000/5) $

5 Training staff $

6 Bandaid settlement $

7 Soda spllage (1,000 oz. * $0.25) $

8 Barry inspection (15%*$18,000) $

Total Cost of Quality $ $ $ $ $

% Revenue $90,000 0.0% 0.0% 0.0% 0.0% 0.0%

Barry was thrilled with your initial analysis and, in particular, with your recommendation to improve the

cooking process in order to reduce internal failure cost. You observe the cooking process for a few days and

identify the following process steps as well as related material costs, labor time, and scrap % at each step:

Material Labor Units Labor $/hr Cumul. Scrap

Step Process Description $/unit Mins/unit % scrap Started $9.00 Cost Cost

1 Remove/thaw burgers $0.75 0.10 0.0%

2 If uncooked >24hrs, scrap $ 0.20 1.0%

3 Cook on grille $0.10 1.50 0.0%

4 if overcooked, scrap $ 0.30 1.5%

5 Assemble burger $0.30 0.90 0.0%

6 Store in heating unit $ 0.10 0.0%

7 If >10 mins in heater, scrap $ 0.20 2.5%

Totals $1.15 $3.30 5.0% $0.000 $0.000 $

Required:

Complete the chart above to compute the scrap cost per unit. Assuming Barry sells

18,000 burgers per year, what is his annual cost of scrap? What would you recommend?

computing acquisition cost and recording depreciation under three alternative method 446075

Aug 29, 2021 | Uncategorized

At the beginning of the year, Chemical Control Corporation bought three used machines from Radial Compression Incorporated. The machines immediately were overhauled, installed, and started operating. Because the machines were different, each was recorded separately in the accounts.

	Machine A		Machine B		Machine C
Cost of the asset	$	10,300	$	33,100	$	25,700
Installation costs		690		1,300		1,900
Renovation costs prior to use		530		10,100		1,630
Repairs after production began		120		210		290

By the end of the first year, each machine had been operating 6,300 hours.

A

Give the journal entry to record depreciation expense at the end of year 1, assuming the following (Do not round intermediate calculations.Round your answer to the nearest dollar amount. Omit the “$” sign in your response):

	Estimates
Machine	Life	Residual Value			Depreciation Method
A	6 years		$	830	Straight line
B	33,320 hours			1,900	Units of production
C	4 years			1,700	Double declining balance

General Journal	Debit	Credit
(Click to select) Cash Equipment Accumulated depreciation, machine A Depreciation expense Loss on disposal Accumulated depreciation, machine B Cost of goods sold Accumulated depreciation, machine C
(Click to select) Loss on disposal Depreciation expense Cost of goods sold Accumulated depreciation, machine A Cash Accumulated depreciation, machine C Accumulated depreciation, machine B Equipment
(Click to select) Depreciation expense Equipment Accumulated depreciation, machine B Cost of goods sold Loss on disposal Accumulated depreciation, machine C Cash Accumulated depreciation, machine A
(Click to select) Accumulated depreciation, machine C Cash Loss on disposal Accumulated depreciation, machine A Accumulated depreciation, machine B Equipment Depreciation expense Cost of goods sold

financial accounting 446077

Aug 29, 2021 | Uncategorized

BEKHAM COMPANY Income Statement For Year Ended December 31, 2011
Sales			$	2,416,000
Cost of goods sold				1,183,840

Gross profit				1,232,160
Operating expenses
Salaries expense	$	330,992
Depreciation expense		57,984
Rent expense		65,232
Amortization expenses%u2013Patents		7,248
Utilities expense		26,576		488,032

				744,128
Gain on sale of equipment				9,664

Net income			$	753,792

Changes in current asset and current liability accounts for the year that relate to operations follow.


Accounts receivable	$	11,750	increase	Accounts payable	$	10,775	decrease
Merchandise inventory		25,200	increase	Salaries payable		4,900	decrease

Use the above income statement and information about changes in noncash current assets and current liabilities to prepare only the cash flows from operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign. Omit the “$” sign in your response)

Statement of Cash Flows
Cash flows from operating activities
(Click to select) Net income Net loss	$
Adjustments to reconcile net income to net cash provided by operating activities
(Click to select) Amortization expense Patents Gain on sale of equipment Increase in merchandise inventory Decrease in salaries payable Loss on sale of equipment Decrease in accounts payable Increase in accounts receivable Depreciation expense Increase in wages payable
(Click to select) Loss on sale of equipment Decrease in accounts payable Amortization expense Patents Increase in accounts receivable Decrease in salaries payable Increase in merchandise inventory Gain on sale of equipment Depreciation expense Increase in wages payable
(Click to select) Increase in wages payable Increase in merchandise inventory Decrease in accounts payable Decrease in salaries payable Gain on sale of equipment Increase in accounts receivable Amortization expense Patents Loss on sale of equipment Depreciation expense
(Click to select) Loss on sale of equipment Increase in merchandise inventory Decrease in accounts payable Depreciation expense Decrease in salaries payable Amortization expense Patents Increase in wages payable Increase in accounts receivable Gain on sale of equipment
(Click to select) Loss on sale of equipment Increase in wages payable Depreciation expense Decrease in salaries payable Increase in accounts receivable Increase in merchandise inventory Gain on sale of equipment Amortization expense Patents Decrease in accounts payable
(Click to select) Increase in wages payable Gain on sale of equipment Amortization expense Patents Decrease in salaries payable Increase in merchandise inventory Decrease in accounts payable Depreciation expense Loss on sale of equipment Increase in accounts receivable
(Click to select) Increase in wages payable Amortization expense Patents Decrease in accounts payable Increase in merchandise inventory Loss on sale of equipment Depreciation expense Gain on sale of equipment Increase in accounts receivable Decrease in salaries payable

Net cash (Click to select) provided by used in operating activities	$

financial accounting 446078

Aug 29, 2021 | Uncategorized

BEKHAM COMPANY Income Statement For Year Ended December 31, 2011
Sales			$	2,466,000
Cost of goods sold				1,208,340

Gross profit				1,257,660
Operating expenses
Salaries expense	$	337,842
Depreciation expense		59,184
Rent expense		66,582
Amortization expenses%u2014Patents		7,398
Utilities expense		27,126		498,132

				759,528
Gain on sale of equipment				9,864

Net income			$	769,392

Changes in current asset and current liability accounts for the year that relate to operations follow.


Accounts receivable	$	19,650	increase	Accounts payable	$	12,675	decrease
Merchandise inventory		25,900	increase	Salaries payable		2,550	decrease

Use the above income statement and information about changes in noncash current assets and current liabilities to prepare only the cash provided or used by operating activities section of the statement of cash flows for this company using the direct method. (Amounts to be deducted should be indicated with a minus sign. Omit the “$” sign in your response.)

Statement of Cash Flows
Cash flows from operating activities
(Click to select) Payments for rent Payments for salaries Payments for merchandise Payments for income taxes Payments for dividends Receipts from customers Payments for utilities	$
(Click to select) Receipts from customers Payments for income taxes Payments for salaries Payments for rent Payments for dividends Payments for utilities Payments for merchandise
(Click to select) Receipts from customers Payments for income taxes Payments for utilities Payments for rent Payments for merchandise Payments for salaries Payments for dividends
(Click to select) Payments for merchandise Payments for salaries Payments for dividends Payments for income taxes Receipts from customers Payments for rent Payments for utilities
(Click to select) Payments for utilities Payments for merchandise Payments for rent Payments for dividends Receipts from customers Payments for salaries Payments for income taxes

Net cash (Click to select) used in provided by operating activities	$

need help with accounting 446105

Aug 29, 2021 | Uncategorized

Boyle%u2019s Home Center, a retailing company, has two departments, Bath and Kitchen. The company%u2019s most recent monthly contribution format income statement follows:

A study indicates that $376,000 of the fixed expenses being charged to the Bath Department are sunk costs or allocated costs that will continue even if the Bath Department is dropped. In addition, the elimination of the Bath Department would result in a 14% decrease in the sales of the Kitchen Department.

If the Bath Department is dropped, what will be the effect on the net operating income of the company as a whole?

Decrease in net operating income by $_____

accounting 446109

Aug 29, 2021 | Uncategorized

Branch Company, a building materials supplier, has $18,000,000 of notes payable due April 12, 2010. At December 31, 2009, Branch signed an agreement with First Bank to borrow up to $18,000,000 to refinance the notes on a long term basis. The agreement specified that borrowings would not exceed 75% of the value of the collateral that Branch provided. At the date of issue of the December 31, 2009, financial statements, the value of Branch’s collateral was $20,000,000. On its December 31, 2009, balance sheet, Branch should classify the notes as follows:

$15,000,000 long term and $3,000,000 current liabilities.
$4,500,000 short term and $13,500,000 current liabilities.
$18,000,000 of current liabilities.
$18,000,000 of long term liabilities

help 446110

Aug 29, 2021 | Uncategorized

The Brandilyn Toy Company manufactures a line of dolls and a doll dress sewing kit. Demand for the dolls is increasing, and management requests assistance from you in determining the best sales and production mix for the coming year. The company has provided the following data:

Product	Demand Next year (units)	Selling Price per Unit	Direct Materials	Direct Labor
Marcy	26,000	$ 35.00	$ 3.50	$ 4.80
Tina	42,000	$ 24.00	$ 2.30	$ 3.00
Cari	40,000	$ 22.00	$ 4.50	$ 8.40
Lenny	46,000	$ 18.00	$ 3.10	$ 6.00
Sewing kit	450,000	$ 14.00	$ 1.50	$ 2.40

The following additional information is available:

a.	The company%u2019s plant has a capacity of 150,000 direct labor hours per year on a single shift basis. The company%u2019s present employees and equipment can produce all five products.
b.	The direct labor rate of $12.00 per hour is expected to remain unchanged during the coming year.
c.	Fixed costs total $356,000 per year. Variable overhead costs are $4.00 per direct labor hour.
d.	All of the company%u2019s nonmanufacturing costs are fixed.
e.	The company%u2019s finished goods inventory is negligible and can be ignored.

Required:
1.	Determine the contribution margin per direct labor hour expended on each product. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Product	Contribution Margin per DLH
Marcy	$
Tina	$
Cari	$
Lenny	$
Sewing Kit	$

2.	Calculate the total direct labor hours that will be required to produce the units estimated to be sold during the coming year. (Do not round intermediate calculations.)

Product	Total DLHs
Marcy
Tina
Cari
Lenny
Sewing Kit

Total DLHs required

4.	What is the highest price, in terms of a rate per hour, that Brandilyn Toy Company should be willing to pay for additional capacity (that is, for added direct labor time)? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Highest price

$ per hour

preferred perferred stock calculate dividend amounts 446129

Aug 29, 2021 | Uncategorized

Calculate the cash dividends required to be paid for each of the following preferred stock issues:

Required:

(a)

The semiannual dividend on 8% cumulative preferred, $61 par value, 7,900 shares authorized, issued, and outstanding. (Omit the “$” sign in your response.)

Semi annual dividend

$

(b)

The annual dividend on $3.25 cumulative preferred, 70,000 shares authorized, 42,000 shares issued, 37,100 shares outstanding. Last year’s dividend has not been paid. (Omit the “$” sign in your response.)

Cumulative dividend

$

(c)

The quarterly dividend on 14.0% cumulative preferred, $70 stated value, $110 liquidating value, 60,000 shares authorized, 52,000 shares issued and outstanding. No dividends are in arrears. (Omit the “$” sign in your response.)

Quarterly dividend

$

accounting 446156

Aug 29, 2021 | Uncategorized

CASE 5A GLASER HEALTH PRODUCTS

Glaser Health Products of Ranier Falls, Georgia, is organized functionally into three divisions: Operations, Sales, and Administrative. Purchasing, receiving, materials and production control, manufacturing, factory personnel, inventory stores, and shipping activities are under the control of the vice president for operations, George Gottlieb. Advertising, market research, and sales are the responsibility of the vice president for sales, Jake Bogan. Accounting, budgeting, the firm’s computer center, and general office management are delegated to the corporate controller (Administrative), Charlie Kaplan. The following cost categories are found in the company as a whole:

(a)

Depreciation on factory equipment.

(b)

Depreciation on office equipment.

(c)

Depreciation on factory building.

(d)

Advertising manager’s salary.

(e)

Assembly foreman’s salary.

(f)

Salespersons’ salaries.

(g)

Salespersons’ travel expenses.

(h)

Supplies for the Machining Department.

(i)

Advertising supplies used.

(j)

Electricity for the Assembly Department.

(k)

Lost materials (scrap) in a Machining Department.

(l)

Direct labor in the Assembly Department.

(m)

Supplies for the sales office.

(n)

Sales commissions.

(o)

Packing supplies.

(p)

Cost of hiring new employees.

(q)

Payroll fringe benefits for workers in the Shipping Department.

(r)

Supplies for Production Scheduling.

(s)

Cost of repairing parts improperly manufactured in the Machining Department.

(t)

Paint for the Assembly Department.

(u)

Heat, light, and power for the factory.

(v)

Leasing of computer equipment for the Accounting Department.

Required: 1. Ientify each of the costs with the appropriate division: Operations, Sales, Administrative.

2.Identify each of the costs with one of the following:

(a) Unit level activities. (c) Product level activities.

Batch level activities. (d) Facility level activities.

3. Organize these classifications by division: Operations, Sales, Administrative.3 Specify an appropriate cost driver for tracing costs associated with the various levels of activities to the next cost objective or products, whichever is appropriate.

4.Gaser Health Products is interested in using activity based costing to identify as many costs as possible with the products. These costs will be used for planning and control decisions rather than for inventory valuation. The controller decided that all operation costs will be related to products but only those sales and administrative costs that are classified as unit level, batch level, or product level costs should be related to products. Using preliminary stage cost drivers, explain how individual items of costs will be traced to activity groupings.

5.Using primary stage cost drivers, show how the costs should be related to products.

6.Explain why it is necessary to use preliminary stage and primary stage cost drivers.

accounting case chester and wayne 446163

Aug 29, 2021 | Uncategorized

Case: Chester & Wayne

Chester & Wayne is a regional food distribution company. Mr. Chester, CEO, has asked your assistance in preparing cash flow information for the last three months of this year. Selected accounts from an interim balance sheet dated September 30, have the following balances:

Cash: $142,100

Accounts payable $354,155

Marketable securities: 200,000

Other payables 53,200

Accounts receivable: 1,012,500

Inventories: 150,388

Mr. Wayne, CFO, provides you with the following information based on experience and management policy. All sales are credit sales and are billed the last day of the month of sale. Customers paying within 10 days of the billing date may take a 2 percent cash discount. Forty percent of the sales is paid within the discount period in the month following billing. An additional 25 percent pays in the same month but does not receive the cash discount. Thirty percent is collected in the second month after billing; the remainder is uncollectible. Additional cash of $24,000 is expected in October from renting unused warehouse space.

Sixty percent of all purchases, selling and administrative expenses, and advertising expenses is paid in the month incurred. The remainder is paid in the following month. Ending inventory is set at 25 percent of the next month’s budgeted cost of goods sold. The company’s gross profit averages 30 percent of sales for the month. Selling and administrative expenses follow the formula of 5 percent of the current month’s sales plus $75,000, which includes depreciation of $5,000. Advertising expenses are budgeted at 3 percent of sales.

Actual and budgeted sales information is as follows:

Actual:

August: $750,000 & September: 787,500

Budgeted: October: $826,800, November: 868,200, December: 911,600, January: 930,000

The company will acquire equipment costing $250,000 cash in November. Dividends of $45,000 will be paid in December.

The company would like to maintain a minimum cash balance at the end of each month of $120,000. Any excess amounts go first to repayment of short term borrowings and then to investment in marketable securities. When cash is needed to reach the minimum balance, the company policy is to sell marketable securities before borrowing.

Questions (use of spreadsheet software is recommended):

1.Prepare a cash budget for each month of the fourth quarter and for the quarter in total. Prepare supporting schedules as needed. (Round all budget schedule amounts to the nearest dollar.)

2. You meet with Mr. Chester and Mr. Wayne to present your findings and happen to bring along your PC with the budget model software. They are worried about your findings in Part 1. They have obviously been arguing over certain assumptions you were given.

3. Mr. Wayne thinks that the gross margin may shrink to 27.5 percent because of higher purchase prices. He is concerned about what impact this will have on borrowings. Comment.

4. Mr. Chester thinks that “stock outs” occur too frequently and wants to see the impact of increasing inventory levels to 30 and 40 percent of next quarter’s sales on their total investment. Comment on these changes.

5. Mr. Wayne wants to discontinue the cash discount for prompt payment. He thinks that maybe collections of an additional 20 percent of sales will be delayed from the month of billing to the next month. Mr. Chester says “That’s ridiculous! We should increase the discount to 3 percent. Twenty percent more would be collected in the current month to get the higher discount.” Comment on the cash flow impacts.

accounting 446165

Aug 29, 2021 | Uncategorized

Case: Mendel Paper Company
Mendel Paper Company produces four basic paper product lines at one of its plants: computer paper, napkins, place mats, and poster board. Materials and operations vary according to the line of product. The market has been relatively good. The demand for napkins and place mats has increased with more people eating out, and the demand for the other lines has been growing steadily.
The plant superintendent, Marlene Herbert, while pleased with the prospects for increased sales, is concerned about costs:
“We hear talk about a paperless office, but I haven’t seen it yet. The computers, if anything, have increased the market for paper. Our big problem now is the high fixed cost of production. As we have automated our operation, we have experienced increases in fixed overhead and even variable overhead. And, we will have to add more equipment since it appears that we need even more plant capacity. We are operating over our normal capacity as it is.
The place mat market concerns me. We may have to discontinue printing the mats. Our specialty printing is driving up the variable overhead to the point where we may not find it profitable to continue with that line at all.”
Cost and price data for the next fiscal quarter are as follows:
Computer paper Napkins Place mats Poster board
Estimated sales volume in units 30,000 120,000 45,000 80,000
Selling prices……………. $14.00 $7.00 $12.00 $8.50
Materials costs………… 6.00 4.50 3.60 2.50
Variable overhead includes the cost of hourly labor and the variable cost of equipment operation. The fixed plant overhead is estimated at $420,000 for the quarter. Direct labor, to a large extent, is salaried; the cost is included as a part of fixed plant overhead. The superintendent’s concern about the eventual need for more capacity is based on increases in production that may reach and exceed the practical capacity of 60,000 machine hours.
In addition to the fixed plant overhead, the plant incurs fixed selling and administrative expenses per quarter of $118,000.
“I share your concern about increasing fixed costs,” the supervisor of plant operations replies. “We are still operating with about the same number of people we had when we didn’t have this sophisticated equipment. In reviewing our needs and costs, it appears to me that we could cut fixed plant overhead to $378,000 a quarter without doing any violence to our operation. This would be a big help.”
“You may be right,” Herbert responds. “We forget that we have more productive power than we once had, and we may as well take advantage of it. Suppose we get some hard figures that show where the cost reductions will be made.”
Data with respect to production per machine hour and the variable cost per hour of producing each of the products are given as follows:
Computer paper Napkins Place mats Poster board
Units per hour 6 10 5 4
Variable overhead per hour $9.00 $6.00 $12.00 $8.00
“I hate to spoil things,” the vice president of purchasing announces. “But the cost of our materials for computer stock is now up to $7. Just got a call about that this morning. Also, place mat materials will be up to $4 a unit.”
“On the bright side,” the vice president of sales reports, “we have firm orders for 35,000 cartons of computer paper, not 30,000 as we originally figured.”
Questions:
From all original estimates given, prepare estimated contribution margins by product line for the next fiscal quarter. Also, show the contribution margins per unit.

Prepare contribution margins as in part (1) with all revisions included.
For the original estimates, compute each of the following:

(a) Break even point for the given sales mix.
(b) Margin of safety for the estimated sales volume.
For the revised estimates, compute each of the following:
(a) Break even point for the given sales mix.
(b) Margin of safety for the estimated sales volume.
Comment on Herbert’s concern about the variable cost of the place mats.

accounting help 446170

Aug 29, 2021 | Uncategorized

The Cash account in the ledger of Hensley, Inc. showed a balance of $3,100 at June 30. The bank statement, however, showed a balance of $3,900 at the same date. The only reconciling items consisted of a $700 deposit in transit, a bank service charge of $7, and a large number of outstanding checks.

38. Upon completion of the bank reconciliation, a journal entry will be required to update the depositor’s accounting records. This entry will include a:

	Debit to Bank Service Charge Expense for $7.
	Debit to Cash for $7.
	Debit to Cash for $700.
	Credit to Cash for $700.

patagucci inc manufactures and sells athletic equipment the co 281852

Aug 29, 2021 | Uncategorized

Patagucci Inc. manufactures and sells athletic equipment. The company began operations on August 1, 2012, and operated at 100% of capacity (66,000 units) during the first month, creating an ending inventory of 6,000 units. During September, the company produced 60,000 garments during the month but sold 66,000 units at $165 per unit. The September manufacturing costs and selling and administrative expenses were as follows:

Variable costing for management analysis:

?

(a) Prepare an income statement according to the absorption costing concept for September.

(b) Prepare an income statement according to the variable costing concept for September.

(c) What is the reason for the difference in the amount of income from operations reported in (a) and(b)?

prepare and interpret income statements changes in both sales 281857

Aug 29, 2021 | Uncategorized

Prepare and Interpret Income Statements; Changes in Both Sales and Production; Lean Production Starfax, Inc., manufactures a small part that is ?~widely used in various electronic products such as home computers. Operating results for the first three years of activity were as follows (absorption costing basis):

In the latter part of Year 2, a competitor went out of business and in the process dumped large number of units on the market. As a result, Starfax’s sales dropped by 20% during Year 2 even though production increased during the year. Management had expected sales to remain constant at 50,000 units; the increased production was designed to provide the company with a buffer of protection against unexpected spurts in demand. By the start of Year 3, management could see that inventory was excessive and that spurts in demand were unlikely. To reduce the excessive inventories, Starfax cut back production during Year 3, as shown below:

Additional information about the company follows:

a. The company’s plant is highly automated. Variable manufacturing costs (direct materials, direct labor, and variable manufacturing overhead) total only $2 per unit, and fixed manufacturing overhead costs total $480,000 per year.

b. Fixed manufacturing overhead costs are applied to units of product on the basis of each year’s production. That is, a new fixed manufacturing overhead rate is computed each year.

c. Variable selling and administrative expenses were $1 per unit sold in each year. Fixed selling and administrative expenses totaled $140,000 per year.

d. The company uses a FIFO inventory flow assumption.

Starfax’s management can’t understand why profits doubled during Year 2 when sales dropped by 20% and why a loss was incurred during Year 3 when sales recovered to previous levels.

Required:

1. Prepare a contribution format variable costing income statement for each year.

2. Refer to the absorption costing income statements above.

a. Compute the unit product cost in each year under absorption costing. (Show how much of this cost is variable and how much is fixed.)

b. Reconcile the variable costing and absorption costing net operating income figures for each year.

3. Refer again to the absorption costing income statements. Explain why net operating income was higher in Year 2 than it was in Year I under the absorption approach, in light of the fact that fewer units were sold in Year 2 than in Year 1.

4. Refer again to the absorption costing income statements. Explain why the company suffered a loss in Year 3 but reported a profit in Year 1 although the same number of units was sold in each year.

5. a. Explain how operations would have differed in Year 2 and Year 3 if the company had been using Lean Production, with the result that ending inventory was aero.

b. If Lean Production had been used during Year 2 and Year 3 and the predetermined overhead rate is based on 50,000 units per year, what would the company’s net operating income (or loss) have been in each year under absorption costing? Explain the reason for any differences between these income figures and the figures reported by the company in the statementsabove.

how many trucks should he purchase and what will his average total cost be 445930

Aug 29, 2021 | Uncategorized

Don owns a small concrete mixing company. His fixed cost is the cost of the concrete batching machinery and his mixer trucks. His variable cost is the cost of the sand, gravel, and other inputs for producing concrete; the gas and maintenance for the machinery and trucks; and his workers. He is trying to decide how many mixer trucks to purchase. He has estimated the costs shown in the accompanying table based on estimates of the number of orders his company will receive per week.

Quantity of trucks	FC	20 orders	VC 40 orders	60 orders
2	$6,000	$2,000	$5,000	$12,000
3	7,000	1,800	3,800	10,800
4	8,000	1,200	3,600	8,400

a. For each level of fixed cost, calculate Don’s total cost for producing 20, 40, and 60 orders per week.

b. If Don is producing 20 orders per week, how many trucks should he purchase and what will his average total cost be? Answer the same questions for 40 and 60 orders per week.

far north telecom ltd of ontario has organized a new 281758

Aug 29, 2021 | Uncategorized

Far North Telecom, Ltd., of Ontario, has organized a new division to manufacture and sell specialty cellular telephones. The division’s monthly costs are shown below:

Far North Telecom regards all of its workers as full time employees and the company has a long standing no layoff policy. Furthermore, production is highly automated. Accordingly, the company includes its labor costs in its fixed manufacturing overhead. The cellular phones sell for $150 each. During September, the first month of operations, the following activity was recorded:

Required:

1. Compute the unit product cost under:

a. Absorption costing.

b. Variable costing.

2. Prepare an absorption costing income statement for September.

3. Prepare a contribution format income statement for September using variable costing.

4. Assume that the company must obtain additional financing in order to continue operations. As a member of top management, would you prefer to rely on the statement in (2) above or in (3) above when meeting with a group of prospective investors?

5. Reconcile the absorption costing and variable costing net operating incomes in (2) and (3)above.

fdp company produces a variety of home security products gary 281760

Aug 29, 2021 | Uncategorized

FDP Company produces a variety of home security products. Gary Price, the company’s president, is concerned with the fourth quarter market demand for the company’s products. Unless something is done in the last two months of the year, the company is likely to miss its earnings expectation of Wall Street analysts. Price still remembers when FDP’s earnings were below analysts’ expectation by two cents a share three years ago, and the company’s share price fell 19% the day earnings were announced. In a recent meeting, Price told his top management that something must be done quickly. One proposal by the marketing vice president was to give a deep discount to the company’s major customers to increase the company’s sales in the fourth quarter. The company controller pointed out that while the discount could increase sales, it may not help the bottom line; to the contrary, it could lower income. The controller said, ?oSince we have enough storage capacity, we might simply increase our production in the fourth quarter to increase our reported profit.??

Required

1. Gary Price is not sure how the increase in production without a corresponding increase in sales could help boost the company’s income. Explain to Price how reported income varies with respect to production level.

2. Is there an ethical concern in this situation? If so, which parties are affected? Explain.

guochang li was hired as chief executive officer ceo in 281770

Aug 29, 2021 | Uncategorized

Guochang Li was hired as chief executive officer (CEO) in late November by the board of directors of ContactGlobal, a company that produces an advanced global positioning system (GPS) device. The previous CEO had been fired by the board of directors due to a series of shady business practices including shipping defective GPS devices to dealers. Guochang felt that his first priority was to restore employee morale—which had suffered during the previous CEO’s tenure. He was particularly anxious to build a sense of trust between himself and the company’s employees. His second priority was to prepare the budget for the coming year, which the board of directors wanted to review in their December 15 meeting. After hammering out the details in meetings with key managers, Guochang was able to put together a budget that he felt the company could realistically meet during the coming year. That budget appears below:

The board of directors made it clear that this budget was not as ambitious as they had hoped. The most influential member of the board stated that ?omanagers should have to stretch to meet profit goals.?? After some discussion, the board decided to set a profit goal of $2,000,000 for the coming year. To provide strong incentives, the board agreed to pay out very substantial bonuses to top managers of $10,000 to $25,000 each if this profit goal was eventually met. The bonus would be all or nothing. If actual net operating income turned out to be $2,000,000 or more, the bonus would be paid. Otherwise, no bonus would be paid.

Required:

1. Assuming that the company does not build up its inventory (i.e., production equals sales) and its selling price and cost structure remain the same, how many units of the GPS device would have to be sold to meet the net operating income goal of $2,000,000?

2. Verify your answer to (1) above by constructing a revised budget and budgeted absorption costing income statement that yields a net operating income of $2,000,000.

3. Unfortunately, by October of the next year it had become clear that the company would not be able to make the $2,000,000 target profit. In fact, it looked like the company would wind up the year as originally planned, with sales of 400,000 units, no ending inventories, and a profit of $1,672,000.

Several managers who were reluctant to lose their year end bonuses approached Guochang and suggested that the company could still show a profit of $2,000,000. The managers pointed out that at the present rate of sales, there was enough capacity to produce tens of thousands of additional GPS devices for the warehouse and thereby shift fixed manufacturing overhead costs to another year. If sales are 400,000 units for the year and the selling price and cost structure remain the same, how many units would have to be produced in order to show a profit of at least $2,000,000 under absorption costing?

4. Verify your answer to (3) above by constructing an absorption costing income statement.

5. Do you think Guochang Li should approve the plan to build ending inventories in order to attain the target profit?

6. What advice would you give to the board of directors concerning how they determine bonuses in thefuture?

ida sidha karya company is a family owned company located 281788

Aug 29, 2021 | Uncategorized

Ida Sidha Karya Company is a family owned company located in the village of Gianyar on the island of Bali in Indonesia. The company produces a handcrafted Balinese musical instrument called a gamelan that is similar to a xylophone. The sounding bars are cast from brass and hand filed to attain just the right sound. The bars are then mounted on an intricately hand carved wooden base. The gamelans are sold for 850 (thousand) rupiahs. (The currency in Indonesia is the rupiah, which is denoted by Rp.) Selected data for the company’s operations last year follow (all currency values are in thousands of rupiahs):

Required:

1. Assume that the company uses absorption costing. Compute the unit product cost for one gamelan.

2. Assume that the company uses variable costing. Compute the unit product cost for onegamelan.

include the last two years of published accounting statements 281789

Aug 29, 2021 | Uncategorized

Individual Project
Deliverable Length:1 Pages

Points Possible:125
Due Date:3/15/2013 11:59:59 PM CT

Selecting a for profit organization of interest, you will research an unusual or conflicting accounting principle that has impacted your chosen organization. The research will require you to present, review and analyze the organizations published accounting statements of the last two years. Specifically, your research paper will:

Identify the core functions of each department, their strengths and weaknesses, and make recommendations for improvement, as appropriate
Identify and describe the underlying problem or conflict
Compare the alternative courses of action
Explain the effects at issue
Recommend options that would be consistent with the organization’s accounting practices, accounting processes, and accounting related departments.
Include the last two years of published accounting statements

Present your findings as a1 pages Word document formatted in APA style.

Instructor Comments

The IP assignment seems to be confusing to many of you. Here is what you need to do. First off you need to find a company that received a
qualified audit reportmeaning that they were in some sort of violation of Generally Accepted Accounting Principles (GAAP). An unqualified report is a clean report so you
don’twant this one. To find such a company you can search the internet for:
company that has violated GAAP. Then, depending upon what the qualification was, you need to explain the department in the company that was affected and your suggestions to fix it.

For
example, if the qualification was the over statement of revenue then you would look at the sales department and suggest ways (maybe internal controls) that would monitor the situation to prevent the event from happening again.

earch an unusual or conflicti

Attachments:

Unit5 Prinicp….docx

jorgansen lighting inc manufactures heavy duty street 281811

Aug 29, 2021 | Uncategorized

Jorgansen Lighting, Inc., manufactures heavy duty street lighting systems for municipalities. The company uses variable costing for internal management reports and absorption costing for external reports to shareholders, creditors, and the government. The company has provided the following data:

The company’s fixed manufacturing overhead per unit was constant at $560 for all three years.

Required:

1. Determine each year? s absorption costing net operating income. Present your answer in the form of a reconciliation report as shown in Exhibit 7—4.

2. In Year 4, the company’s variable costing net operating income was $984,400 and its absorption costing net operating income was $1,012,400. Did inventories increase or decrease during Year 4? How much fixed manufacturing overhead cost was deferred or released from inventory during Year4?

kellen company manufactures stackable plastic cubes that are use 281813

Aug 29, 2021 | Uncategorized

Kellen Company manufactures stackable plastic cubes that are used for storage in dorm rooms. In August 2008, Kellen began producing multicolored cubes. During the month of August, 9,000 were produced, and 8,800 were sold at $7.50 each. The following costs were incurred:

Direct materials ………………..$10,800

Direct labor ………………………6,750

Variable overhead ………………..5,850

Fixed overhead …………………27,900

A selling commission of 10 percent of sales price was paid. Administrative expenses, all fixed, amounted to $23,000.

Required:

1. Calculate the unit cost and the cost of ending inventory under absorption costing.

2. Calculate the unit cost and the cost of ending inventory under variable costing.

3. What is the contribution margin per unit?

4. Kellen believes that multicolored cubes will really take off after one year of sales. Management thinks August, 2009 sales will be twice as high as August, 2008 sales. Prepare an income statement for August, 2009 using the assumed higher level of sales. Which costing method should be used – absorption costing or variable costing?

kenai kayaking a manufacturer of kayaks began operations this 281814

Aug 29, 2021 | Uncategorized

Kenai Kayaking, a manufacturer of kayaks, began operations this year. During this first year, the company produced 1,050 kayaks and sold 800. At the current year end, the company reported the following income statement information using absorption costing.

Sales (800 A? $1,050) . . . . . . . . . . . . . . . . . $840,000

Cost of goods sold (800 A? $500) . . . . . . . . 400,000

Gross margin . . . . . . . . . . . . . . . . . . . . . . . 440,000

Selling and administrative expenses . . . . . 230,000

Net income . . . . . . . . . . . . . . . . . . . . . . . . $210,000

Additional Information

a. Production cost per kayak totals $500, which consists of $400 in variable production cost and $100 in fixed production cost—the latter amount is based on $105,000 of fixed production costs allocated to the 1,050 kayaks produced.

b. The $230,000 in selling and administrative expense consists of $75,000 that is variable and $155,000 that is fixed.

1. Prepare an income statement for the current year of Kenai Kayaking under variable costing.

2. Explain the difference in income between the variable costing and absorption costing income statement.

la cucina company sells kitchen supplies and 281817

Aug 29, 2021 | Uncategorized

La Cucina Company sells kitchen supplies and housewares. Lava stone is used in production of molcajetes (mortars and pestles used in the making of guacamole) and is purchased from external suppliers. Each year, 2,500 pounds of lava stone is used; it is currently purchased in lots of 500 pounds. It costs La Cucina $4 to place the order, and carrying cost is $2 per pound per year.

Required:

1. What is the EOQ for Lava stone?

2. How many orders per year for Lava stone will La Cucina place under the EOQpolicy?

3. What is the total annual ordering cost of Lava stone for a year under the EOQ policy?

4. What is the total annual carrying cost of Lava stone per year under the EOQ policy?

5. What is the total annual inventory related cost for Lava stone under the EOQ?

cindy ng recently received her ca designation and has accepted a financial statement 281820

Aug 29, 2021 | Uncategorized

Q ,4 I A Q? , , el c’Y 52 CHAPrER 4 Si V • SPEEDY LOANS LTD. • —I ,

Cindy Ng recently received her CA designation and has accepted a financial statement audit en gagement for Speedy Loans Ltd. Speedy, 100% owned by Sam Speed, specializes in lending money on a short term basis to people who are in quick need of cash. As these loans are usually high risk in nature, interest rates are substantially higher than what the banks are offering. Sant was intrigued by a flyer he recently got in the mail which advertised audit services at a flat fee. Sam quickly called the number on the flyer and spoke to Cindy. Sam explained to Cindy that while he had no real need for an audit, the price was right and lie liked the idea of giving her an opportunity to gain some experience. Cindy in turn was excited to get the engagement as it was her very first client alter having been let go from the big four firm she had been working for. Being un employed was not in her plan. Unfortunately she was heavily in debt, still paying off student loans and her credit card bill for the trip to Europe she had taken after she graduated. List month, Cindy had no choice but to declare personal bankruptcy and start with a clean slate. Doing audit engagements on her own with no bosses and tile reviews to worry about was go ing to be the start of a new beginning and she couldn’t believe her luck in landing her first client so quickly While she didn’t know Sam, he seemed like a great guy and she appreciated him giving her a chance at proving herself. She quickly drafted up an engagement letter and started planning the audit. Cindy received the financial statement from Speedy’s accountant and planned her audit carefully. She was apprehensive at first, given that she had never done the planning part of the audit engagement before as that was always done fur her in her previous audits at her old firm. She was glad that she had photocopied an audit file before she left the old firm so she had something to use as a guideline. She set materiality at $100,000, based on a discussion with Sam about what he thought. After all, what better person than the owner himself to know a big number when he saw it? She learned from the accountant that the financial statements were prepared based on ASPE. During her testing she discovered the following I. A piece of factory equipment with a net book value of $250,000 had been sold during the year but was still listed on Speedy’s balance sheet. Sam assured her that this was an oversight and they agreed that the balance sheet would be changed to remove the asset that had been sold. 2. There was a building on the books that was valued on the balance sheet at its estimated fair value of S1 million. When Cindy questioned the accountant, he said that Sam liked the idea of adjusting this to fair value as there was a good prospect of selling the property shortly and they wanted it to look good on the books. 3. Cindy also found a $25,000 payment for a credit card bill for a family vacation to the Ca ribbean, which had been expensed as advertising. She easily convinced the accountant to re classify this as “training” expenses. 4. She also found several smaller amounts for personal items, which had been included as corporate expenses. She was relieved that none of these were over the $100,000 materiality threshold that she had set and agreed to accept these as “immaterial”. Cindy knew that she should probably insist on a valuation of the property, given its significant increase over cost, but she decided against it, not wanting to rock the boat. She accepted the valu ation and issued an unqualified opinion, as no third party that she knew of would be using the

Attachments:

Speedy Loan L….jpeg

mac ericson and tammy ferguson met at an ima conference 281829

Aug 29, 2021 | Uncategorized

Mac Ericson and Tammy Ferguson met at an IMA conference two months ago and began dating. Mac is the controller for Longley Enterprises, and Tammy is a marketing manager for Sharp Products. Longley is a major supplier for Piura Products, a competitor of Sharp’s. Longley has entered into a long term agreement to supply certain materials to Piura. Piura has been developing a JIT purchasing and manufacturing system. As part of its development, Piura and Longley have established EDI capabilities. The following conversation took place during a luncheon engagement:

Tammy: ?~?~Mac, I understand that you have EDI connections with Piura. Is that right?’’

Mac: ?~?~Sure. It’s part of the partners in profits arrangement that we have worked so hard to get. It’s working real well. Knowing Piura’s production schedule helps us stabilize our own schedule. It has actually cut some of our overhead costs. It has also decreased Piura’s costs. I estimate that we both have decreased production costs by about 7 to 10 percent.’’

Tammy: ?~?~That’s interesting. You know, I have a real chance of getting promoted to VP of marketing….’’

Mac: ?~?~Hey, that’s great. When will you know?’’

Tammy: ?~?~It all depends on this deal that I am trying to cut with Balboa—if I win the contract, then I think I have it. My main problem is with Piura. If I knew what its production schedule was, I could get a pretty good idea as to how long it would take it to deliver. I could then make sure that we beat its delivery offer—even if we had to work overtime and do all kinds of expediting. I know that our delivery speed is very, very important to Balboa. Our quality is as good as Piura’s, but it tends to beat us on delivery time. My boss would love to kick Piura. It has beat us too many times recently. I am wondering if you would be willing to help me out.’’

Mac: ?~?~Tammy, you know that I would help if I could, but Piura’s production schedule is confidential information. If word got out that I had leaked that kind of stuff to you, I would be history.’’

Tammy: ?~?~Well, no one would ever know. Besides, I have already had a chat with Tom Anderson, our CEO. Our VP of finance is retiring. He knows about you and your capabilities. I think he would be willing to hire you—especially if he knew that you helped swing this Balboa deal. You could increase your salary by 40 percent.’’

Mac: ?~?~I don’t know. I have my doubts about the propriety of all this. It might look kind of funny if I take over as VP of finance not long after Piura loses the Balboa deal. But a VP position and a big salary increase are tempting. It’s unlikely that I’ll ever have a shot at the VP position in my company.’’

Tammy: ?~?~Think it over. If you are interested, I’ll arrange a dinner with Tom Anderson. He said he’d like to meet you. He knows a little about this. I’m sure that he has the ability to keep it quiet. I don’t think there is much risk.’’

Required:

1. Based on this information, has Mac violated any of the IMA standards of ethical conduct? Explain.

2. Suppose that Mac decides to provide information in exchange for the VP position. What IMA standards would he violate?

maxwell company manufactures and sells a single product the fol 281831

Aug 29, 2021 | Uncategorized

Maxwell Company manufactures and sells a single product. The following costs were incurred during the company’s first year of operations:

VARIABLE COSTS PER UNIT:

Manufacturing:

Direct materials. . . . . . . . . . . . . . . . . . . . . . . . . . . $18

Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $7

Variable manufacturing overhead . . . . . . . . . . . . . $2

Variable selling and administrative . . . . . . . . . . . . . . $5

Fixed costs per year:

Fixed manufacturing overhead . . . . . . . . . . . . . . . . . $160,000

Fixed selling and administrative expenses . . . . . . . . $110,000

During the year, the company produced 20,000 units and sold 16,000 units. The selling price of the company’s product is $50 per unit.

Required:

1. Assume that the company uses absorption costing:

a. Compute the unit product cost.

b. Prepare an income statement for the year.

2. Assume that the company uses variable costing:

a. Compute the unit product cost.

b. Prepare an income statement for the year.

norwood company a producer of solid oak tables reports the 281841

Aug 29, 2021 | Uncategorized

Norwood Company, a producer of solid oak tables, reports the following data from its current year operations, which is its second year of business.

Sales price per unit . . . . . . . . . . . . . . . . . . . $320 per unit

Units produced this year . . . . . . . . . . . . . . . 115,000 units

Units sold this year . . . . . . . . . . . . . . . . . . . 118,000 units

Units in beginning year inventory . . . . . . . . 3,000 units

Beginning inventory costs

Variable (3,000 units _ $135) . . . . . . . . . . $405,000

Fixed (3,000 units _ $80) . . . . . . . . . . . . . 240,000

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . $645,000

Production costs this year

Direct materials . . . . . . . . . . . . . . . . . . . .$40 per unit

Direct labor . . . . . . . . . . . . . . . . . . . . . . . $62 per unit

Overhead costs this year

Variable overhead . . . . . . . . . . . . . . . . . $3,220,000

Fixed overhead . . . . . . . . . . . . . . . . . . . $7,400,000

Nonproduction costs this year

Variable selling and administrative . . . . . . . $1,416,000

Fixed selling and administrative . . . . . . . . . 4,600,000

1. Prepare the current year income statement for the company using absorption costing.

2. Prepare the current year income statement for the company using variable costing.

3. Explain any difference between the two income numbers under the two costing methods in parts 1 and 2.

compute the fixed portion of the predetermined overhead rate for the year 445908

Aug 29, 2021 | Uncategorized

ABC Manufacturing uses a standard costing system. It applies overhead to products based on machine hours. Data for the year are as follows:

Total budgeted fixed overhead	$300,000
Actual fixed overhead costs incurred	$275,000
Total budgeted (denominator) machine hours	50,000
Actual machine hours	54,000
Standard machine hours allowed for the actual output	52,000

Required: Compute the fixed portion of the predetermined overhead rate for the year. Compute the fixed overhead budget and volume variances.

what would be the company s roi in this situation 445910

Aug 29, 2021 | Uncategorized

Omaha Company provides the following information:

Sales	$4,000,000
Net operating income	400,000
Average operating assets	1,600,000

Consider each question independently. Carry out all computations to two decimal places.

Required:

a) Compute the company’s return on investment.

b) The owner is convinced that sales will increase next year by 150% and that net operating income will increase by 100%, with no increase in average operating assets. What would be the company’s ROI?

c) The chief financial officer of the company believes a more realistic scenario would be a $1,000,000 increase in sales, requiring a $400,000 increase in average operating assets, with a resulting $250,000 increase in net operating income. What would be the company’s ROI in this situation?

what would be department a s new roi 445911

Aug 29, 2021 | Uncategorized

Snickers Company has two investment centers and has developed the following information:

	Department A	Department B
Net operating income	$120,000	?
Average operating assets	?	$400,000
Sales	800,000	250,000
ROI	10%	12%

Required:

a) What was the amount of Department A’s average operating assets?

b) What was the amount of Department B’s net operating income?

c) If Department B is able to reduce its operating assets by $100,000, what would be Department B’s new ROI?

d) If Department A is able to increase its net operating income by $60,000 by reducing expenses, what would be Department A’s new ROI?

what was the amount of residual income for each department 445912

Aug 29, 2021 | Uncategorized

Snickers Company has two investment centers and has developed the following information. Snickers Company expects a minimum return on operating assets of 10%.

	Department A	Department B
Net operating income	$120,000	$48,000
Average operating assets	$1,200,000	$400,000
Sales	800,000	250,000

Required: What was the amount of residual income for each department?

which alternative would the company choose 445918

Aug 29, 2021 | Uncategorized

Miami Company has $15,000 to invest. Management is trying to decide between two alternative uses for the funds as follows. The company’s discount rate is 16%.

	Project A	Project b
Investment required	$15,000	$15,000
Single cash inflow at the end of 10 years	$0	$60,000
Annual cash inflows	$4,000	$0
Life of the project	10 years	10 years

Required: Which alternative would the company choose?

compute the project profitability index for each proposal and rank the proposals in 445919

Aug 29, 2021 | Uncategorized

Information on four investment proposals at Tampa Corp. is given below:

	A	B	C	D
Investment required	$85,000	$200,000	$90,000	$170,000
Present value of cash flows	119,000	250,000	135,000	221,000
Net present value	34,000	50,000	45,000	51,000
Life of the project	5 year	7 year	6 year	6 year

Required: Compute the project profitability index for each proposal and rank the proposals in terms of preference.

determine the payback period of the investment 445920

Aug 29, 2021 | Uncategorized

Tallahassee Company is considering an investment in a high quality blueprint printer with the following cash flows:

Year	Investment	Cash Inflow
1	($38,000)	$2,000
2	(6,000)	4,000
3		8,000
4		9,000
5		12,000
6		10,000
7		8,000
8		6,000
9		5,000

Required:

a) Determine the payback period of the investment.

b) Would the payback period be affected if the cash inflow in year 8 was $18,000?

assume the indirect method is used for reporting 445922

Aug 29, 2021 | Uncategorized

For each of the following items, indicate whether it would appear in the operating, investing, or financing activities section of the statement of cash flows or is not reported in one of these three categories. Assume the indirect method is used for reporting.

	Operating	Investing	Financing	None
a) Revenue – expenses	________	________	________	________
b) Collection of a cash dividend	________	________	________	________
c) Payment of a dividend previously declared	________	________	________	________
d) Purchase of land in exchange for a long term note payable	________	________	________	________
e) Issued common stock for cash	________	________	________	________
f) Sale of equipment for cash	________	________	________	________
g) Purchase of a patent for cash	________	________	________	________
h) Sales of a short term investment for cash	________	________	________	________
i) Collection of an account receivable	________	________	________	________
j) Issuance of a stock dividend	________	________	________	________

sagaworth inc reported the following information 445923

Aug 29, 2021 | Uncategorized

Sagaworth Inc. reported the following information:

	2011	2010
Net Loss	$380,000
Depreciation expense	150,000
Amortization expense	25,000
Accounts receivable	200,000	$230,000
Inventory	140,000	140,000
Prepaid expenses	40,000	30,000
Accounts payable	190,000	180,000
Accrued liabilities	50,000	45,000
Taxes payable	10,000	20,000

Determine Sagaworth’s net cash flow from operating activities for 2011 under the indirect method.

you have the information shown in the accompanying table about a firm s costs comple 445928

Aug 29, 2021 | Uncategorized

You have the information shown in the accompanying table about a firm’s costs. Complete the missing data.

Quantity	TC	MC	ATC	AVC
0	$20
1	?	$20	?	?
2	?	$10	?	?
3	?	$16	?	?
4	?	$20	?	?
5	?	$24	?	?

The accompanying table contains the complete cost data. The total cost of producing one unit of output is the total cost of producing zero units of output plus the marginal cost of increasing output from zero to one, and so forth. The average total cost is just the total cost divided by output. Since the total cost of producing zero output is $20, the variable cost is TC $20. The average variable cost is then just the variable cost divided by output.

Quantity	TC	MC	ATC	AVC
0	$20
1	$40	$20	$40	$20
2	$50	$10	$25	$15
3	$66	$16	$22	$15.33
4	$86	$20	$21.50	$16.50
5	$110	$24	$22	$18

Evaluate each of the following statements. If a statement is true, explain why; if it is false, identify the mistake and try to correct it.

a. A decreasing marginal product tells us that marginal cost must be rising.

b. An increase in fixed cost increases the minimum cost output.

c. An increase in fixed cost increases marginal cost.

d. When marginal cost is above average total cost, average total cost must be falling.

vargas corporation s fiscal year ends on november 30 the follow 281547

Aug 29, 2021 | Uncategorized

Vargas Corporation’s fiscal year ends on November 30. The following accounts are found in its job order cost accounting system for the first month of the new fiscal year.

?

Other data:

1. On December 1, two jobs were in process: Job No. 154 and Job No. 155.These jobs had combined direct materials costs of $9,750 and direct labor costs of $15,000. Overhead was applied at a rate that was 80% of direct labor cost.

2. During December, Job Nos. 156, 157, and 158 were started. On December 31, Job No. 158 was unfinished. This job had charges for direct materials $3,800 and direct labor $4,800, plus manufacturing overhead. All jobs, except for Job No. 158, were completed in December. 3. On December 1, Job No. 153 was in the finished goods warehouse. It had a total cost of $5,000. On December 31, Job No. 157 was the only job finished that was not sold. It had a cost of $4,000.

4. Manufacturing overhead was $230 overapplied in December.

Instructions

List the letters (a) through (m) and indicate the amount pertaining to eachletter.

hillman ltd is a company that manufactures and sells a single product 281593

Aug 29, 2021 | Uncategorized

Hillman Ltd. is a company that manufactures and sells a single product. For planning and control purposes they utilize a monthly master budget, which is usually developed at least six months in advance of the budget year. Their fiscal year end is June 30.

The sales forecast consisted of these few lines: • For the year ended June 30, 2008: 475,000 units at $10.00 each’ • For the year ended June 30. 2009: 600,000 units at $10.00 each • For the year ended June 30, 2010: 600,000 units at $10.00 each

‘Expected sales for the year ended June 30. 2008 are based on actual sales to date and budgeted sales for the duration of the year.

Your investigations of the company’s records have revealed the following information:

1. Peak months for sales correspond with gift giving holidays. History shows that January, March, May and June are the slowest months with only 1% of sales for each month. Sales pick up over the summer with July, August and September each contributing 2% to the total. Valentines Day in February boosts sales to 5%, and Easter in April accounts for 10%. As Christmas shopping picks up momentum, winter sales start at 15% in October, move to 20% in November and then peak at 40% in December. This pattern of sales is not expected to change in the next two years.

2. From previous experience, management has determined that an ending inventory equal to 30% of the next month’s sales is required to fit the buyer’s demands. 3. Because sales are seasonal, Hillman must rent an additional storage facility from September to December to house the additional inventory on hand. The only related cost is a flat $5,000 per month, payable at the beginning of the month.

4. There is only one type of raw material used in the production of toodles. Space age acrylic (SAA) is a very compact material that is purchased in powder form. Each toodle requires 10 kilograms of SAA, at a cost of $0.25 per kilogram. The supplier of SAA tends to be somewhat erratic so Hillman finds it necessary to maintain an inventory balance equal to 50% of the following month’s production needs as a precaution against stock outs. Hillman pays for 30% of a month’s purchases in the month of purchase, 35% in the following month and the remaining 35% two months after the month of purchase. There is no early payment discount.

5. Beginning accounts payable will consist of $19,497 arising from the following estimated direct material purchases for May and June of 2008: SAA purchases in May, 2008: $14,281 SAA purchases in June, 2008 $20,713

Attachments:

Budget Assign….pdf

adams company a manufacturer of in home decorative fountains b 281685

Aug 29, 2021 | Uncategorized

Adams Company, a manufacturer of in home decorative fountains, began operations on September 1 of the current year. Its cost and sales information for this year follows.

Production costs

Direct materials . . . . . . . . . . . . . . . . . . . . $40 per unit

Direct labor . . . . . . . . . . . . . . . . . . . . . . .$60 per unit

Overhead costs for the year

Variable overhead . . . . . . . . . . . . . . . . . $3,000,000

Fixed overhead . . . . . . . . . . . . . . . . . . . $7,000,000

Nonproduction costs for the year

Variable selling and administrative . . . . . . . $ 770,000

Fixed selling and administrative . . . . . . . . . $4,250,000

Production and sales for the year

Units produced . . . . . . . . . . . . . . . . . . . . . 100,000 units

Units sold . . . . . . . . . . . . . . . . . . . . . . . . 70,000 units

Sales price per unit . . . . . . . . . . . . . . . . . . $350 per unit

1. Prepare an income statement for the company using absorption costing.

2. Prepare an income statement for the company using variable costing.

3. Under what circumstance(s) is reported income identical under both absorption costing and variable costing?

aristotle constantinos the manager of duraproducts australian 281700

Aug 29, 2021 | Uncategorized

Aristotle Constantinos, the manager of DuraProducts’ Australian Division, is trying to set the production schedule for the last quarter of the year. The Australian Division had planned to sell 100,000 units during the year, but current projections indicate sales will be only 78,000 units in total. By September 30 the following activity had been reported:

Units

Inventory, January 1. . . . . . . . . . . . . . 0

Production . . . . . . . . . . . . . . . . . . . . . 72,000

Sales . . . . . . . . . . . . . . . . . . . . . . . . . 60,000

Inventory, September 30 . . . . . . . . . . 12,000

Demand has been soft, and the sales forecast for the last quarter is only 18,000 units.

The division can rent warehouse space to store up to 30,000 units. The division should maintain a minimum inventory level of at least 1,500 units. Mr. Constantinos is aware that production must be at least 6,000 units per quarter in order to retain a nucleus of key employees. Maximum production capacity is 45,000 units per quarter.

Due to the nature of the division’s operations, fixed manufacturing overhead is a major element of product cost.

Required:

1. Assume that the division is using variable costing. How many units should be scheduled for production during the last quarter of the year? (The basic formula for computing the required production for a period in a company is: Expected sales + Desired ending inventory Beginning inventory = Required production.) Show computations and explain your answer. Will the number of units scheduled for production affect the division’s reported profit for the year? Explain.

2. Assume that the division is using absorption costing and that the divisional manager is given an annual bonus based on the division’s net operating income. If Mr. Constantinos wants to maximize his division’s net operating income for the year, how many units should be scheduled for production during the last quarter? [See the formula in (1) above.] Explain.

3. Identify the ethical issues involved in the decision Mr. Constantinos must make about the level of production for the last quarter of the year.

clockworks inc is a small canadian company that has been marginally successful over 281703

Aug 29, 2021 | Uncategorized

1. Clockworks Inc. is a small Canadian company that has been marginally successful over the past 5 years. Its net income for the year ended December 31, 20×12, as determined under Accounting Standards for Private Enterprises (ASPE) is as follows: Sales $375,000 Cost of goods sold 150,000 Gross profit 225,000 Selling expenses 50,400 General and administrative expenses 92,200 142,600 Income before provision for income taxes $82,400 Additional information for the year: § Selling expenses include: o Meals & Entertainment $2,300 o Donation to a registered charity $500 o Sponsorship of local, junior hockey team $2,500 § General and administrative expenses include: o Penalty for filing income tax late $500 o Administration fees related to arranging new debt $2,200 § Cost of Goods Sold expenses include: o Depreciation of manufacturing equipment $22,500 § Capital cost allowance on tangible assets was calculated to be $16,250 for the year § Clockworks Inc. has a non capital loss carry forward of $15,000 from 20×10 § Assume that Clockworks Inc. claims the maximum allowable CCA Based on the information provided, what is Clockworks Inc.’s 20×12 net income for tax purposes? a. $95,060 b. $92,560 c. $92,060 d. $77,560 2. Based on the information provided above, Clockworks Inc.’s taxable income will be $_________ __________ than its net income for tax purposes? a. $18,000 lower b. $ 3,000 lower c. $15,500 higher d. $15,500 lower CMA Accelerated Program – Winter 2013 Week 7 Quiz 3. Better Bottles Inc. commenced operations on January 1, 20×9 when it purchased a patent for a recycling process that takes used food containers and converts them into plastic water bottles. Better Bottles Inc. purchased the patent for $120,000. At the time of purchase, the patent had a remaining legal life of 20 years. Also on January 1, 20×9, Better Bottles Inc. signed a lease for its manufacturing facility. The lease had a 5 year term with 3, 2 year renewal options. Better Bottles Inc. has a December 31st year end. In 20×9, Better Bottles Inc. spent $100,000 to customize the manufacturing space. In 20×11, an additional $80,000 was spent on creating custom office space within the manufacturing facility. Assuming Better Bottles Inc. claims the maximum allowable CCA in all years, what is the UCC balance of the patent and the leasehold improvements respectively at the end of 20×12? a. $44,296, $105,999 b. $96,000, $105,999 c. $44,296, $112,856 d. $96,000, $112,856 4. Big Dave’s Delivery had the following opening UCC balances for the current taxation year. Class 10 (30%) $350,000 Class 10.1 (30%) 19,000 Class 1 (4%) 82,000 During the current year two delivery trucks (Class 10) were sold for proceeds of $20,000 (original cost $41,000) and $15,000 (original cost $52,000). The trucks were replaced with a single new, bigger truck purchased at a cost of $62,250. In addition, Big Dave sold his Porsche for $25,000 (original cost $59,000) and replaced it with a BMW SUV, which had a cost of $62,000. Based on this information, what is the maximum CCA that Big Dave’s Delivery can claim for the current taxation year? a. $119,718 b. $110,868 c. $118,818 d. $124,518

Attachments:

quiz7 w13.pdf

compudesk inc makes an oak desk specially designed for person 281722

Aug 29, 2021 | Uncategorized

CompuDesk, Inc., makes an oak desk specially designed for personal computers. The desk sells for $200. Data for last year’s operations follow:

Units in beginning inventory . . . . . . . . . . . . . . . . . . 0

Units produced. . . . . . . . . . . . . . . . . . . . . . . . . 10,000

Units sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,000

Units in ending inventory . . . . . . . . . . . . . . . . . . 1,000

Variable costs per unit:

Direct materials . . . . . . . . . . . . . . . . . . . . . . . . $ 60

Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Variable manufacturing overhead . . . . . . . . . . . . 10

Variable selling and administrative . . . . . . . . . . . 20

Total variable cost per unit . . . . . . . . . . . . . . . . $ 120

Fixed costs003A

Fixed manufacturing overhead . . . . . . . . . . . $300,000

Fixed selling and administrative . . . . . . . . . . 450,000

Total fixed costs . . . . . . . . . . . . . . . . . . . . . . $750,000

Required:

1. Assume that the company uses variable costing. Compute the unit product cost for one computer desk.

2. Assume that the company uses variable costing. Prepare a contribution format income statement for the year.

3. What is the company’s break even point in terms of units sold?

duo company reports the following information for the current ye 281735

Aug 29, 2021 | Uncategorized

Duo Company reports the following information for the current year, which is its first year of operations.

Direct materials . . . . . . . . . . . . . . . . . . . . . . . . $15 per unit

Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . $16 per unit

Overhead costs for the year

Variable overhead . . . . . . . . . . . . . . . . . . . . . . $ 80,000 per year

Fixed overhead . . . . . . . . . . . . . . . . . . . . . . . . $160,000 per year

Units produced this year . . . . . . . . . . . . . . . . . 20,000 units

Units sold this year . . . . . . . . . . . . . . . . . . . . . . 14,000 units

Ending finished goods inventory in units . . . . . 6,000 units

1. Compute the cost per unit of finished goods using absorption costing.

2. Compute the cost per unit of finished goods using variable costing.

3. Determine the cost of ending finished goods inventory using absorption costing.

4. Determine the cost of ending finished goods inventory using variable costing.

during heaton company s first two years of operations 281736

Aug 29, 2021 | Uncategorized

During Heaton Company’s first two years of operations, the company reported absorption costing net operating income as follows:

The company’s $18 unit product cost is computed as follows:br>

Forty percent of fixed manufacturing overhead consists of wages and salaries; the remainder consists of depreciation charges on production equipment and buildings.br> Production and cost data for the two years are:br>

Required:br> 1. Prepare a variable costing contribution format income statement for each year.br> 2. Reconcile the absorption costing and the variable costing net operating income figures for each year.br>

during its first year of operations sugarsmooth inc produced 281739

Aug 29, 2021 | Uncategorized

During its first year of operations, Sugarsmooth, Inc. produced 55,000 jars of hand cream based on a formula containing 10 percent glycolic acid. Unit sales were 53,500 jars. Fixed overhead totaled $27,500 and was applied at the rate of $0.50 per unit produced. The results of the year’s operations are as follows (on an absorption costing basis):

Sales (53,500 units @ $8.50) …………………………$454,750

Less: Cost of goods sold ……………………………….160,500

Gross margin ………………………………………….$294,250

Less: Selling and administrative (all fixed) ……………120,000

Operating income ……………………………………..$174,250

At the end of the first year of operations, Sugarsmooth is considering expanding its customer base. In its first year, it sold to small drugstores and supermarkets. Now, Sugarsmooth wants to add large discount stores and small beauty shops. Working together, the company controller and marketing manager have accumulated the following information:

a. Anticipated sales to discount stores would be 20,000 units at a discounted price of $6.75. Higher costs of shipping and return penalties would be incurred. Shipping would amount to $45,000 per year, and return penalties would average 1 percent of sales. In addition, a clerk would need to be hired solely to handle the discount stores’ accounts. The clerk’s salary and benefits would be $30,000 per year.

b. Anticipated sales to beauty shops would be 10,000 units at a price of $9. A commission of 10 percent of sales would be paid to independent jobbers who sell to the shops. In addition, an extra packing expense of $0.50 per unit would be incurred because the shops require fewer bottles per carton.

c. The fixed overhead and selling and administrative expenses would remain unchanged and are treated as common costs.

Required:

1. Calculate the cost of Sugarsmooth’s ending inventory at the end of the first year under absorption costing.

2. Calculate the cost of Sugarsmooth’s ending inventory at the end of the first year under variable costing. What is operating income for the first year using variable costing?

3. Prepare a segmented variable costing income statement for next year. The segments correspond to customer groups: drugstores and supermarkets, discount stores, and beauty shops.

4. Are all three customer groups profitable? Should Sugarsmooth expand its marketing base?

you need a lathe n tomo for your machine shop your best estimate 281743

Aug 29, 2021 | Uncategorized

You need a lathe (%n tomo) for your machine shop. Your best estimate is that you will need it for the next 10 years. After much search, you narrowed down you options to two models: ABC (call it “A”) and DEF (call it “D”). You were able put together the following financial data to help you decide:

A D First Cost $25,000 $32,000 0 & M Annual Cost $11,000 /yr $9,700 / yr Useful life 10 years 14 years Salvage Value (at end of useful life) $3,000 $2,000

If the interest rate relevant to your analysis is 12%, what should be the salvage value of the DEF model at the end of 10 years so that you would be indifferent between the two models?

Attachments:

Screen Shot 2….png

adria company accounting 445686

Aug 29, 2021 | Uncategorized

adria Company recently implemented an activity based costing system. At the beginning of the year, management made the following estimates of cost and activity in the company%u2019s five activity cost pools:

Activity Cost Pool	Activity Measure	Expected Overhead Cost		Expected Activity
Labor related	Direct labor hours	$	171,500	35,000	DLHs
Purchase orders	Number of orders	$	67,500	900	orders
Material receipts	Number of receipts	$	159,320	1,400	receipts
Relay assembly	Number of relays	$	303,450	10,500	relays
General factory	Machine hours	$	812,000	70,000	MHs

1.	Compute the activity rate for each of the activity cost pools.(Round your answer to 2 decimal places.)

Activity Cost Pool	Activity Rate
Labor related	$	per DLH
Purchase orders	$	per order
Material receipts	$	per receipt
Relay assembly	$	per relay
General factory	$	per MH

2.	The expected activity for the year was distributed among the company’s four products as follows:

	Expected Activity

Activity Cost Pool	Product A	Product B	Product C	Product D
Labor related (DLHs)	5,600	7,500	10,050	8,850
Production orders (orders)	145	300	100	405
Material receipts (receipts)	440	170	210	480
Relay assembly (relay)	0	4,350	0	7,150
General factory (MHs)	9,100	20,000	17,000	21,900

Using the ABC data, determine the total amount of overhead cost assigned to each product. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.)


Product A	$
Product B	$
Product C	$
Product D	$

managerial accounting 445688

Aug 29, 2021 | Uncategorized

Adria Company recently implemented an activity based costing system. At the beginning of the year, management made the following estimates of cost and activity in the company%u2019s five activity cost pools:

Activity Cost Pool	Activity Measure	Expected Overhead Cost		Expected Activity
Labor related	Direct labor hours	$	175,000	35,000	DLHs
Purchase orders	Number of orders	$	64,710	900	orders
Material receipts	Number of receipts	$	162,400	1,400	receipts
Relay assembly	Number of relays	$	309,750	10,500	relays
General factory	Machine hours	$	735,000	70,000	MHs

value:

8.00 points

2.	The expected activity for the year was distributed among the company’s four products as follows:

	Expected Activity

Activity Cost Pool	Product A	Product B	Product C	Product D
Labor related (DLHs)	5,700	7,300	10,150	8,850
Production orders (orders)	145	305	85	415
Material receipts (receipts)	370	165	205	560
Relay assembly (relay)	0	4,350	0	7,150
General factory (MHs)	10,400	19,400	16,700	21,500

Using the ABC data, determine the total amount of overhead cost assigned to each product. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.)


Product A	$
Product B	$
Product C	$
Product D	$

referencesebook & resources

contrasting activity based costing and conventional product costing 445689

Aug 29, 2021 | Uncategorized

Adria Company recently implemented an activity based costing system. At the beginning of the year, management made the following estimates of cost and activity in the company%u2019s five activity cost pools:

Activity Cost Pool	Activity Measure	Expected Overhead Cost		Expected Activity
Labor related	Direct labor hours	$	199,500	35,000	DLHs
Purchase orders	Number of orders	$	70,920	900	orders
Material receipts	Number of receipts	$	159,600	1,400	receipts
Relay assembly	Number of relays	$	304,500	10,500	relays
General factory	Machine hours	$	770,000	70,000	MHs

3. value:

7.00 points

Required:
1.	Compute the activity rate for each of the activity cost pools.(Round your answer to 2 decimal places.)

Activity Cost Pool	Activity Rate
Labor related	$	per DLH
Purchase orders	$	per order
Material receipts	$	per receipt
Relay assembly	$	per relay
General factory	$	per MH

eBook: USING ACTIVITY BASED COSTING %u2013 LO 2
eBook: USING ACTIVITY BASED COSTING %u2013 LO 3
eBook: USING ACTIVITY BASED COSTING %u2013 LO 4

Worksheet	Learning Objective: 03 02 Compute activity rates for an activity based costing system.	Learning Objective: 03 04 Contrast the product costs computed under activity based costing and conventional costing methods.
Difficulty: Hard	Learning Objective: 03 03 Compute product costs using activity based costing.

value:

8.00 points

2.	The expected activity for the year was distributed among the company’s four products as follows:

	Expected Activity

Activity Cost Pool	Product A	Product B	Product C	Product D
Labor related (DLHs)	6,300	7,300	9,750	8,650
Production orders (orders)	135	295	75	445
Material receipts (receipts)	390	175	210	525
Relay assembly (relay)	0	4,350	0	7,150
General factory (MHs)	9,000	21,700	16,700	20,600

Using the ABC data, determine the total amount of overhead cost assigned to each product. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.)


Product A	$
Product B	$
Product C	$
Product D	$

learning outcomes upon successful completion 445691

Aug 29, 2021 | Uncategorized

1HFAPR: Financial Performance Appraisal Student Guide FNSACC501A Provide Financial and Business Performance InformationElements of competence • Assess client needs • Analyse data • Prepare advice FNS50210 Diploma of Accounting _____________________________________________________________________________________________HFAPR – Financial Performance Appraisal Assessor Guide January 2012 Page 2 MODULE DESCRIPTION This module covers the competency to analyse and report a broad range of financial and business performance information. LEARNING OUTCOMES Upon successful completion of this module, students will be able provide financial and business information to clients through analysing data, assessing clients needs and they will also be able to prepare advice with a realistic view.TEACHING PROGRAM The program is of twelve (12) hours per week for one teaching block of five (5) weeks (60 hours). COURSE REQUIREMENTS To be assessed as competent for this unit of competency you must be able to do the following: (1) Demonstrate understanding of all learning outcomes (2) Successfully complete and submit all tasks as requested Assessment methods and tasks Methods of assessment Through consultation with industry, the following assessment methods have been deemed appropriate forthis unit. Test Candidate will be required to answer a series of questions that will demonstrate their ability to assess client’s needs, analyse data and to prepare advice to client. Written report Candidate will be required to demonstrate their ability to assess client’s needs, analyse data and to prepare advice to client through completing various activities. ASSESSMENT DETAILS Assessment Due Assessment Task 1 Test Week 5 Assessment Task 2 Written report Week 4

Document Preview:

HFAPR: Financial Performance Appraisal Student Guide FNSACC501A Provide Financial and Business Performance Information Elements of competence • Assess client needs • Analyse data • Prepare advice 1FNS50210 Diploma of Accounting _____________________________________________________________________________________________ MODULE DESCRIPTION This module covers the competency to analyse and report a broad range of financial and business performance information. LEARNING OUTCOMES Upon successful completion of this module, students will be able provide financial and business information to clients through analysing data, assessing clients needs and they will also be able to prepare advice with a realistic view. TEACHING PROGRAM The program is of twelve (12) hours per week for one teaching block of five (5) weeks (60 hours). COURSE REQUIREMENTS To be assessed as competent for this unit of competency you must be able to do the following: (1) Demonstrate understanding of all learning outcomes (2) Successfully complete and submit all tasks as requested Assessment methods and tasks Through consultation with industry, the following Methods of assessment methods have been deemed appropriate for assessment this unit. Test Candidate will be required to answer a series of questions that will demonstrate their ability to assess client’s needs, analyse data and to prepare advice to client. Written report Candidate will be required to demonstrate their ability to assess client’s needs, analyse data and to prepare advice to client through completing various activities. ASSESSMENT DETAILS Assessment Due Assessment Task 1 Week 5 Test Assessment Task 2 Week 4 Written report HFAPR – Financial Performance Appraisal Assessor Guide January 2012 Page 2FNS50210 Diploma of Accounting _____________________________________________________________________________________________ …

Attachments:

HFAPR.pdf

chapter 9 flexible budgets performance analysis 445694

Aug 29, 2021 | Uncategorized

AirAssurance Corporation provides on site air quality testing services. The company has provided the following data concerning its operations:

	Fixed Component per Month		Variable Component per Job	Actual Total for March
Revenue			$279	$	27,940
Technician wages	$	8,300		$	8,150
Mobile lab operating expenses	$	4,600	$26	$	7,620
Office expenses	$	2,200	$4	$	2,490
Advertising expenses	$	1,580		$	1,650
Insurance	$	2,850		$	2,850
Miscellaneous expenses	$	960	$1	$	375

The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,600 plus $26 per job, and the actual mobile lab operating expenses for March were $7,620.

The company expected to work 110 jobs in March, but actually worked 108 jobs.

Required:

Complete the flexible budget performance report showing AirAssurance Corporation%u2019s activity variances and revenue and spending variances for March. (Input all amounts as positive values. Leave no cells blank be certain to enter “0” wherever required. Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Omit the “$” sign in your response.)

AirAssurance Corporation Flexible Budget Performance Report For the Month Ended March 31
	Activity Variances	Revenue and Spending Variances
Revenue	$	$

Expenses:
Technician wages
Mobile lab operating expenses
Office expenses
Advertising expenses
Insurance
Miscellaneous expenses

Total expense

Net operating income	$	$

high low method 445697

Aug 29, 2021 | Uncategorized

Alden Company has decided to use a contribution format income statement for internal planning purposes. The company has analyzed its expenses and has developed the following cost formulas:

Cost	Cost Formula
Cost of goods sold	$26 per unit sold
Advertising expense	$176,000 per quarter
Sales commissions	8% of sales
Administrative salaries	$86,000 per quarter
Shipping expense	?
Depreciation expense	$56,000 per quarter

Management has concluded that shipping expense is a mixed cost, containing both variable and fixed cost elements. Units sold and the related shipping expense over the last eight quarters are given below:

Quarter	Units Sold	Shipping Expense
Year 1:
First	22,000	$166,000
Second	24,000	$181,000
Third	29,000	$223,000
Fourth	25,000	$186,000
Year 2:
First	23,000	$176,000
Second	26,000	$191,000
Third	34,000	$238,000
Fourth	31,000	$214,000

Management would like a cost formula derived for shipping expense so that a budgeted contribution format income statement can be prepared for the next quarter.

Required:
1.	Using the high low method, estimate a cost formula for shipping expense based on the data for the last eight quarters above. (Omit the “$” sign in your response.)

Y = $ + $ X

2.

In the first quarter of Year 3, the company plans to sell 27,000 units at a selling price of $56 per unit. Prepare a contribution format income statement for the quarter. (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the “$” sign in your response.)

Alden Company Budgeted Income Statement For the First Quarter of Year 3
(Click to select) Sales Advertising expense Sales commissions Depreciation expense Shipping expense Cost of goods sold		$
Variable expenses:
(Click to select) Cost of goods sold Depreciation expense Sales commissions Advertising expense Administrative salaries Shipping expense	$
(Click to select) Sales commissions Administrative salaries Advertising expense Depreciation expense Cost of goods sold Shipping expense
(Click to select) Depreciation expense Shipping expense Advertising expense Administrative salaries Cost of goods sold Sales commissions

Total variable expenses

(Click to select) Gross Margin Contribution margin Net operating loss Net operating income
Fixed expenses:
(Click to select) Depreciation expense Administrative salaries Advertising expense Cost of goods sold Shipping expense Sales commissions
(Click to select) Sales commissions Shipping expense Depreciation expense Administrative salaries Advertising expense Cost of goods sold
(Click to select) Cost of goods sold Advertising expense Administrative salaries Shipping expense Depreciation expense Sales commissions
(Click to select) Sales commissions Cost of goods sold Shipping expense Advertising expense Administrative salaries Depreciation expense

Total fixed expenses

(Click to select) Contribution margin Net operating income Gross Margin Net operating loss		$

n here

accounting asap 445700

Aug 29, 2021 | Uncategorized

Allcell Manufacturing is a division of Birch Communications, Inc. All cell produces cell phones and sells these phones to other communication companies, as well as to Birch. Recently, the vice president of marketing for Birch approached Allcell with a request to make 20,000 units of a special cell phone that could be used anywhere in the world. The following information is available regarding the Allcell division: Selling price of regular cell phone . . . . . . . . . . $80 Variable cost of regular cell phone. . . . . . . . . . . 45 Additional variable cost of special cell phone. . . . 30 Calculate the minimum transfer price and indicate whether the internal transfer should occur for each of the following: Show your calculations to receive credit for your answers. The marketing vice president offers to pay Allcell $95 per phone. Allcell has available capacity. The marketing vice president offers to pay Allcell $95 per phone. Allcell has no available capacity and would have to forego sales of 20,000 phones to existing customers to meet this request.

accounting 445707

Aug 29, 2021 | Uncategorized

Amfac Company manufactures a single product. The company keeps careful records of manufacturing activities from which the following information has been extracted:

	Level of Activity
	March%u2212Low	June%u2212High
Number of units produced	11,400	15,200
Cost of goods manufactured	$272,300	$375,300
Work in process inventory, beginning	$14,300	$22,600
Work in process inventory, ending	$25,400	$14,300
Direct materials cost per unit	$10	$10
Direct labor cost per unit	$7	$7
Manufacturing overhead cost, total	?	?

calculate gross profit cost of goods sold and selling price second part is effects o 445708

Aug 29, 2021 | Uncategorized

AMM, Inc., had sales of $43.0 million for fiscal 2010. The company’s gross profit ratio for that year was 24.0%.

Required:
(a)	Calculate the gross profit and cost of goods sold for AMM, Inc., for fiscal 2010. (Round your answers to 2 decimal places. Enter your answers in millions. Omit the “$” sign in your response.)


Gross profit	$	million
Cost of goods sold	$	million

(b)

Assume that a new product is developed and that it will cost $489 to manufacture. Calculate the selling price that must be set for this new product if its gross profit ratio is to be the same as the average achieved for all products for fiscal 2010. (Round your answer to 2 decimal places. Omit the “$” sign in your response.)

Selling price

$

Assume that the ending inventory of a merchandising firm is overstated by $27,800.

Required:
(a)	By how much and in what direction (overstated or understated) will the firm’s cost of goods sold be misstated? (Omit the “$” sign in your response.)

Cost of goods sold

by

$

lifo fifo or average cost 445728

Aug 29, 2021 | Uncategorized

Answer FIFO, LIFO or Average cost 1Produces the same COGS under both the periodic and the perpetual inventory systems.
2. Rarely used with a perpetual inventory system.
3. Produces results that are similar to the specific identification method.
4. Widely used for tax purposes.
5. Never results in either the highest or lowest possible net income.
6. Produces the highest gross profit when costs are decreasing.
7. Produces the highest ending inventory when costs are increasing.
8. Assigns the same value to all inventory units.
9. Prohibited under International Financial Reporting Standards (IFRS).
10. Does not follow the physical flow of goods in most cases.
11. Cost of the latest purchases are assigned to ending inventory

accounting 445736

Aug 29, 2021 | Uncategorized

Please answer for the “?” thanks.

Blue Bill Corporation
Income Statement
For the year ended 20xx
	2004	2003
Net sales	$4,250,000	$5,175,000
Cost of goods sold	$2,220,000	$2,605,000
Gross Profit	?	?
Operating Expenses	$650,000	$720,000
Other Expenses	$120,000	$115,000
Earnings Before Interest and Taxes (EBIT)	?	?
Net interest expenses	$0	$15,000
Income Tax Expense	?	?
Net Earnings	?	?
Earnings per share(1,250 shares issued)	?	?


Blue Bill Corporation
Balance Sheet
December 31, 20xx
	2004	2003
Current assets
Cash and cash equivalents	$500,000	$450,000
Accounts receivable	?	?
Less: Doubtful accounts	?	?
Inventory	$2,912,000	$1,980,000
Other current assets	$45,000	$50,000
Total current assets	?	?
Net property, plant, and equipment	$250,000	$200,000
Other assets	$16,000	$15,000
Total assets	?	?
	?	?
Current liabilites
Accounts payable	$1,000,000	$900,000
Other current liabilities	$35,000	$22,000
Long term debt	$900,000	$930,000
Equity	?	$1,793,000
Total liabilities and equity	?	?

break even 445761

Aug 29, 2021 | Uncategorized

Armstrong company, operating at full capacity, sold $80,000 units at a price of $124 per unit during 2012. Its income statement for 2012 is as follows:

Sales…………………………………………………………………………………$9,920,000

Cost of goods sold……………………………………………………………..5,000,000

Gross profit……………………………………………………………………….$4,920,000

Expenses:

Selling expense…………………….$2,600,000

Administrative expense………..1,220,000

Total expenses………………………………………….3,820,000

Income from operations…………………………………………$1,100,000

The division of costs between fixed and variable is as follows:

Fixed variable

Cost of goods sold 25% 75%

Selling expenses 40% 60%

Administrative 50% 50%

Management is considering a plant expansion program that will permit an increase of $2,480,000 in yearly sales. The expansion will increase fixed costs by $272,000, but will not affect the relationship between sales and variable sales.

Instructions

1. Determine for 2012 at the total fixed costs and the total variable costs

2. Determine for 2012 (a) the unit variable cost and (b) the unit contributing margin

3. Compute the break even sales (unit) for 2012

4. Compute the break even sales (units) under the proposed program

5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $1,100,000 of income from the operations that was earned in 2012

6. Determined the maximum income from the operations possible with the expanded plant

7. If the proposal is accepted and the sales remain at the 2012 level, what will the income or loss from the operations be for 2013

8. Based on the data given, would you recommend accepting the proposal?

auditing problem 445793

Aug 29, 2021 | Uncategorized

During your audit of Carla Pang Inc. you prepared the following bank transfer schedule.

Check

Bank Accounts

Date Disbursed

Date Deposited

Number

From

To

Amount

Books

Bank

Books

Bank

2001

City Bank

3rd National

60000

12/28

12/31

12/28

2002

City Bank

Portland

80000

12/28

1/3

12/31

6734

1st City

City Bank

42000

1/3

12/31

3580

Portland

3rd National

75000

1/3

1/4

12/30

2008

City Bank

3rd National

44000

12/31

1/5

12/31

1/3

2009

City Bank

Portland

67000

1/1

12/31

1/1

12/31

4005

3rd National

City Bank

33000

12/31

1/4

1/5

Fill out the talble below indicating the most likely situation as it relates to cash at year end. Indicate the situation using one of the following:

1.year end total cash is properly stated. 2. year end total cash is understated. 3, year end total cash is overstated.

Check Number reply

2001

2002

6734

3580

2008

2009

4005

prepare income statements using both variable and absorption costing 445896

Aug 29, 2021 | Uncategorized

Assume Harvey Company produces a single product with available information for 2010 as follows:

a) The unit product costs under absorption and variable costing would be $16 and $10, respectively.

b) 25,000 units were produced and 20,000 units were sold during the year.

c) The selling price per unit is $30.

d) There is no beginning inventory.

e) The unit product cost is $10 for variable costing and $16 for absorption costing.

f) Fixed manufacturing cost was $150,000 in the current period.

g) Selling and administrative expenses were 50% fixed in the current period.

h) The net operating income is $90,000 under variable costing.

Required:

a) Prepare income statements using both variable and absorption costing.

b) Reconcile variable costing and absorption costing net operating incomes and explain why the two amounts differ.

c) Determine the amount of fixed overhead deferred in ending inventory.

compute production cost per unit under variable costing 445898

Aug 29, 2021 | Uncategorized

Home Base, Inc. reports the following production cost information:

Units produced	97,000 units
Units sold	92,000 units
Direct labor	$17.00 per unit
Direct materials	$34.00 per unit
Variable overhead	$2,522
Fixed overhead	$1,940

Required:

a) Compute production cost per unit under variable costing.

b) Compute production cost per unit under absorption costing.

c) Determine the cost of ending inventory using variable costing.

d) Determine the cost of ending inventory using absorption costing.

prepare direct materials budget for the chips by quarter and in total for year 2 inc 445900

Aug 29, 2021 | Uncategorized

Texas Products has developed a very powerful electronic calculator. Each calculator requires three small chips that cost $2.00 each and are purchased from an overseas supplier. Texas Products has prepared a production budget for the calculator by quarters for Year 2 and for the first quarter of Year 3, as follows:

Year 2	Year 3
	First	Second	Third	Fourth	First
Budgeted productions,
in Calculators	60,000	90,000	150,000	100,000	80,000

The inventory of the chips at the end of a quarter must be equal to 20% of the following quarter’s production needs. There will be 36,000 chips on hand to start the first quarter of Year 2.

Required:

Prepare direct materials budget for the chips, by quarter and in total, for Year 2 including the dollar amount of purchases for each quarter and for the year in total.

prepare the company s direct labor budget for the upcoming fiscal year 445901

Aug 29, 2021 | Uncategorized

The production department of the Company B has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:

	First	Second	Third	Fourth
Units to be produced	10,000	8,000	8,500	9,000

Each unit requires 0.6 direct labor hours and at a cost of $15.00 per direct labor hour. The workforce can be adjusted each quarter for the expected production level

Required: Prepare the company’s direct labor budget for the upcoming fiscal year.

construct company s manufacturing overhead budget for the year 445902

Aug 29, 2021 | Uncategorized

Company C’s variable manufacturing overhead rate is $2.00 per direct labor hour and the company’s fixed manufacturing overhead is $40,250 per quarter. The only non cash expense included in the fixed overhead is depreciation of $12,000 per quarter.

The budgeted direct labor hours for each quarter are as followed:

	First	Second	Third	Fourth
Budgeted direct labor hours	5,000	6,500	6,000	5,500

Required:

a) Construct company’s manufacturing overhead budget for the year.

b) Compute the company’s manufacturing overhead rates (variable, fixed and total) for the year.

determine what the operating income should have been for the actual units sold 445903

Aug 29, 2021 | Uncategorized

The May 2009 income statement for Trajan Inc. is shown below:

	Actual	Static Budget
Units sold	110	100
Sales	$3,200	$3,000
Variable expenses	$1,920	$1,800
Contribution margin	$1,280	$1,200
Fixed expenses	$680	$700
Operating income	$600	$600

Required:

a) Determine what the operating income should have been for the actual units sold.

b) Reconcile the difference between static budget and actual operating income.

prepare the company s planning budget assuming that 10 000 units were manufactured 445904

Aug 29, 2021 | Uncategorized

Jansen Corporation’s data concerning the company’s monthly revenues and costs appear below.

	Variable Cost Formula	Fixed Cost Formula
Revenue	$15.00/unit
Costs of material	$7.25/unit
Wages and salaries		$20,000
Utilities	$0.45/unit	$1,200
Rent		$10,000
Miscellaneous	$0.90/unit	$2,000

Required:

a) Prepare the company’s planning budget assuming that 10,000 units were manufactured.

b) Assume that 9,900 units were actually manufactured. Prepare the flexible budget for this level of activity.

c) Prepare a flexible budget performance report for the company using the actual income statement information shown below.

Revenue	$149,200
Costs of materials	73,200
Salaries	19,500
Utilities	5,800
Rent	10,000
Miscellaneous	12,000

help 445540

Aug 29, 2021 | Uncategorized

14. Prepare a multiple step income statement for Armour Co. from the following data for the year ended December 31, 2014.

Sales, $790,000; cost of merchandise sold, $330,000; administrative expenses, $35,000; interest expense, $20,000; rent revenue, $25,000; sales returns and allowances, $35,000; selling expenses, $50,000.

15.

Sampson Co. sold merchandise to Batson Co. on account, $46,000, terms 2/15, net 45. The cost of the merchandise sold is $38,500. Sampson Co. issued a credit memo for $1,500 for merchandise returned that originally cost $950. The Batson Co. paid the invoice within the discount period. Prepare the entries that both Sampson and Batson Companies would record for the above. Assume both Sampson and Batson use a perpetual inventory system.

acc 305 help needed pt5 445541

Aug 29, 2021 | Uncategorized

17.

The number of units of CK74 that Ruby must sell to break even is (rounded, if necessary):

	4,201.
	10,400.
	7,048.
	8,471.

#18 20

Accents Associates sells only one product, with a current selling price of $190 per unit. Variable costs are 30% of this selling price, and fixed costs are $21,000 per month. Management has decided to reduce the selling price to $185 per unit in an effort to increase sales. Assume that the cost of the product and fixed operating expenses are not changed by this reduction in selling price.

references

18.

At the current selling price of $190 per unit, the contribution margin ratio is:

	140%.
	30%.
	57%.
	70%.

19.

.

At the current selling price of $190 per unit, the dollar volume of sales per month necessary for Accents to break even is:

	$21,000.
	$30,000.
	$100,000.
	Some other amount.

references

20.

At the current selling price of $190 per unit, what dollar volume of sales per month is required for Accents to earn a monthly operating income of $9,000?

	$21,000.
	$333,333.
	$42,857.
	Some other amount.

acct 212 445552

Aug 29, 2021 | Uncategorized

2. (TCO 1) The financial statements present a company to the public in financial terms. (1) Which financial statement identifies where cash was generated and where it was spent during the year (10 points) and (2) identify the three major parts of this statement. (10 points) (Points : 20) (TCO 2) Transaction analysis results in the development of a journal entry. In the start up of a business the owner contributes $750,000 of cash. (1) Name the accounts impacted and how using the format account name/debit or credit/dollar amount (10 points) and (2) explain how the Accounting Equation is impacted. (10 points) (TCO 3) Adjusting Entries are required at the end of the period to ensure that accrual accounting principles are applied. The building that houses the business is depreciated at an annual rate of $14,000. Develop the adjusting entry for year end. (1) Name the accounts impacted and how using the format account name/debit or credit/dollar amount (10 points) and (2) explain how the Accounting Equation is impacted. (10 points)

acct 445556

Aug 29, 2021 | Uncategorized

2. (TCO B) Adjusting Entries: Stephen King, D.D.S. opened a dental practice on January 1, 2010. During the first month of operations the following transactions occurred: Performed services for patients who had dental plan insurance. At January 31, $1,000 of such services was earned but not yet billed to the insurance companies. Salaries were incurred totaling $650 but not paid at month end. Supplies totaling $600 were purchased on account. Prepare the adjusting entries on January 31. Omit explanations. For each journal entry write Dr. for debit and Cr. for credit. (Points : 10)

3. (TCO B) Adjusting Entries: William Bryant is the new owner of Ace Computer Services. At the end of August 2010, his first month of ownership, Bryant is trying to prepare monthly financial statements. At August 31, Bryant owed his employees $2,000 in wages that will be paid on September 1. At the end of the month he had not yet received the month%u2019s utility bill. Based on past experience, he estimated that the bill would be approximately $800. A telephone bill in the amount of $317 covering August charges is unpaid at August 31. You are to provide the missing adjusting entries that must be made. For each journal entry write Dr. for debit and Cr. for credit (Points : 10)

4. (TCO B) Adjusting entries: When the accounts of Constantine Inc. are examined, the adjusting data listed below are uncovered on December 31, the end of annual fiscal period. The prepaid insurance account shows a debit of $9,000, representing the cost of a 2 year fire insurance policy dated August 1 of the current year. On November 1, Rental Revenue was credited for $4,000, representing revenue from a sub rental for a 3 month period beginning on that date. Interest of $900 has accrued on notes payable. You are to prepare the missing adjusting entry. For each journal entry write Dr. for debit and Cr. for credit. (Points : 10)

5. (TCO B) Adjusting Entries: On April 1, 2010, Prince Company assigns $500,000 of its Accounts Receivable to the Third National Bank as collateral for a $300,000 loan due July 1, 2010. The assignment agreement calls for Prince Company to continue to collect the receivables. Third National Bank asses a finance charge of 2% of the accounts receivable, and interest on the loan is 10% (a realistic rate of interest for a note of this Type:). Prepare the journal entry for Prince%u2019s collection of $350,000 of the accounts receivable during the period from April 1, 2010 through June 30, 2010. You are to prepare the missing adjusting entry. For each journal entry write Dr. for debit and Cr. for credit. (Points : 10)

6. (TCO B) Adjusting Entries: Wizard Industries purchase $12,000 of merchandise on February 1, 2010, subject to a trade discount of 105 and with credit terms of 3/15/, n/60. It returned $3,000 (gross price before trade or cash discount) on February 4. The invoice was paid on February 13. Assuming that Wizard uses the periodic method for recoding merchandise transactions, record the purchase, return, and payment using the gross method. For each journal entry write Dr. for debit and Cr. for credit. (Points : 10)

7. (TCO B) Adjusting Entries: Shabbona Corporation operates a retail computer store. To improve delivery services to customers, the company purchased a new truck on April 1, 2010. The terms for the acquisition of the truck are: it has a list price of $15,000 and is acquired for a cash payment of $13,900. Write the journal entry to record the purchase of the truck. Write Dr. for debit and Cr. for credit. (Points : 10)

8. (TCO D) The adjusted trial balance of Cavamanlis Co. as of December 31, 2011 contains the following:

Account Titles

Dr

Cr

Cash

$18,972

Accounts Receivable

6,920

Prepaid Rent

4,280

Equipment

20,050

Accumulated Depreciation

$5,895

Notes Payable

5,700

Accounts Payable

4,472

Common Stock

20,000

Retained Earnings

15,310

Dividends

4,000

Service Revenue

12,590

Salaries Expense

6,840

Rent Expense

2,760

Depreciation Expense

145

Interest Expense

83

Interest Payable

83

$64,050

Instructions
Prepare in good form a balance sheet for the year ended December 31, 2011. (Points : 15)

1. (TCO C) Flynn Design Agency was founded by Kevin Flynn in January 2009. Presented below is the adjusted trial balance as of December 31, 2010.
Flynn Design Agency
Adjusted Trial Balance
December 31, 2010

Account Titles

Dr

Cr

Cash

$10,000

Accounts Receivable

21,500

Art Supplies

5,000

Prepaid Insurance

2,500

Printing Equipment

60,000

Accumulated Depreciation

$35,000

Accounts Payable

8,000

Interest Payable

150

Notes Payable

5,000

Unearned Advertising Revenue

5,600

Salaries Payable

1,300

Common Stock

10,000

Retained Earnings

3,500

Advertising Revenue

58,500

Salaries Expense

12,300

Insurance Expense

850

Interest Expense

500

Depreciation Expense

7,000

Art Supplies Expense

3,400

Rent Expense

4,000

Total

$127,050

Prepare a single step income statement for the year ending December 31, 2010. (Points : 15)

2. (TCO C) Two accountants for the firm of Allen and Wright are arguing about the merits of presenting an income statement in a multiple step versus a single step format. The discussion involves the following 2010 information related to Webster Company.

Administrative expense

Officers%u2019 salaries

$5,900

Depreciation of equipment

3,960

Cost of Goods Sold

73,570

Rental revenue

17,230

Selling Expense

Transportation out

2,690

Sales commission

7,980

Depreciation of equipment

6,480

Sales

116,500

Income tax

10,580

Interest expense

1,860

Prepare a single step income statement for the year ended December 31, 2010. (Points : 20)

3. (TCO D) Bruno Company has seceded to expand its operations. The bookkeeper recently completed the balance sheet presented below in order to obtain additional funds for expansion.
Bruno Company
Balance Sheet
December 31, 2010

Current Assets

Cash

$280,000

Accounts Receivable (net)

340,000

Inventories at lower of average cost or market

500,000

Trading securities %u2013 at cost (fair value $120,000)

140,000

Property, plant and equipment

Building (net)

570,000

Office equipment (net)

160,000

Land held for future use

225,000

Intangible assets

Goodwill

100,000

Cash surrender value of life insurance

90,000

Prepaid expenses

12,000

Current liabilities

Accounts payable

175,000

Notes payable (due next year)

125,000

Pension obligation

122,000

Rent payable

49,000

Premium on bonds payable

53,000

Long term liabilities

Bonds payable

500,000

Stockholders%u2019 Equity

Common stock, $1.00 par, authorized

400,000 shares, issued 290,000

340,000

Additional paid in capital

219,000

Retained earnings

?

Prepare a revised balance sheet given the available information. Assume that the accumulated depreciation balance for the buildings is $160,000 and for the office equipment, $105,000. The allowance for doubtful accounts has a balance of $17,000. The pension obligation is considered a long term liability. (Points : 20)

4. (TCO F) Determine the cash account balance. If the item described is not reported as cash, explain the rationale. Checking account balance $590,000; postdated check from customer $11,000; cash restricted due to maintaining compensating balance requirement of $100,000; certified check from customer $9,800; postage stamps on hand $620. (Points : 20)

5. (TCO F) At the end of 2010 Sorter Company has accounts receivable of $900,000 and an allowance for doubtful accounts of $40,000. On January 16, 2011, Sorter Company determined that its receivable from Ordonez Company of $8,000 will not be collected, and management authorized its write off. What is the net realizable value of Sorter Company%u2019s accounts receivable after the write off of the Ordonez receivable? (Points : 20)

6. (TCO G) In your audit of Garza Company, you find that a physical inventory on December 31, 2010, showed merchandise with a cost $541,000 was on hand at that date. You also discover the following items were all excluded from the inventory count.
%u2022Merchandise of $71,000 which is held by Garza on consignment. The consignee is the Bontemps Company.
%u2022Merchandise costing $33,000 which was shipped by Garza f.o.b. shipping point to a customer on December 31, 2010. The customer was expected to receive the merchandise on January 6, 2011.
%u2022Merchandise costing $46,000 which was shipped by Garza f.o.b. destination to a customer on December 29, 2010. The customer was schedule to receive the merchandise on January 2, 2011.
%u2022Merchandise costing $73,000 shipped by a vendor f.o.b. shipping point on December 30, 2010, and received b y Garza on January 4, 2011.
%u2022Merchandise costing $51,000 shipped by a vendor f.o.b. destination on December 31, 2010, and received b y Garza on January 5, 2011.
Based on the above information, calculate the amount that should appear on Garza%u2019s balance sheet at December 31, 2010, for inventory. (Points : 20)

7. (TCO G) Werth Company asks you to review its December 31, 2010 inventory values and prepare the necessary adjustments to the books. The following information is given to you.
%u2022Werth uses the periodic method of recording inventory. A physical count reveals $234,890 of inventory on hand at December 31, 2010.
%u2022Included in inventory is merchandise sold to Bubby on December 30, f.o.b. destination. This merchandise was shipped after it was counted. The invoice was prepared and recorded as a sale on account for $12,800 on December 31. The merchandise cost $7,350, and Bubby received it on January 3.
%u2022Not included in inventory is $8,540 of merchandise purchased from Minsky Industries. This merchandise was received on December 31 after the inventory had been counted. The invoice was received and recorded on December 30.
%u2022Included in inventory was $10,438 of inventory held by Werth on consignment from Jackel Industries.
%u2022Excluded from inventory was a carton labeled %u201CPlease accept for credit%u201D. This carton contains merchandise costing $1,500 which had been sold to a customer for $2,600. No entry had been made to the books to reflect the return, but none of the returned merchandise seemed damaged.
Determine the proper inventory balance for Werth Company at December 31, 2010. (Points : 20)

8. (TCO H) Pollachek Co. purchased land as a factory site for $450,000. The process of tearing down two old buildings on the site and constructing the factory required 6 months. The company paid $42,000 to tear down the old buildings and sold salvaged lumber and brick for $6,300. Legal fees of $1,850 were paid for title investigation and drawing the purchase contract. Pollachek paid $2,200 to an engineering firm for a land survey, and $65,000 for drawing the factory plans. The land survey had to be made before definitive plans could be drawn. Title insurance on the property cost $1,500, and a liability insurance premium paid during construction was $900. The contractor%u2019s charge for construction was $2,740,000. The company paid the contractor in two installments: $1,200,000 at the end of 3 months and $1,540,000 upon completion. Interest costs of $170,000 were incurred to finance the construction.
Determine the cost of the land and the cost of the building as they should be recorded on the books of Pollachek Co. Assume that the land survey was for the building. (Points : 30)

9. (TCO E) Maserati Corporation purchased a new machine for its assembly process on August 1, 2010. The cost of this machine was $150,000. The company estimated that the machine would have a salvage value of $24,000 at the end of its service life. Its life is estimated at 5 years and its working hours are estimated at 21,000 hours. Year end is December 31. Compute the depreciation expense using the Sum of the years digits method for 2011. (Points : 30)

casualty loss personal and business 445560

Aug 29, 2021 | Uncategorized

During 2012, someone broke into Jacob’s personal residence and took the following items:

Asset	Adjusted Basis	FMV Before	FMV After	Insurance Recovery
Business computer	$12,000	$10,000	$0	$7,000
Bearer bonds	30,000	25,000	0	0
Silverware	7,000	20,000	0	18,000
Cash	8000	8000	0	0

Jacob is an employee and used the computer 100% of the time in his employment. Although his homeowner’s insurance policy paid Jacob $7,000 for the stolen computer, Jacob’s employer did not reimburse Jacob for any of the remainder of his loss. Jacob’s AGI for the year, before considering any of the above items, is $50,000.

Determine the total deduction for the stolen items on Jacob’s 2012 tax return.
$

help 445598

Aug 29, 2021 | Uncategorized

5. Straightforward net present value and internal rate of return The City of Bedford is studying a 600 acre site on Route 356 for a new landfill. The startup cost has been calculated as follows: Purchase cost: $450 per acre Site preparation: $175,000 The site can be used for 20 years before it reaches capacity. Bedford, which shares a facility in Bath Township with other municipalities, estimates that the new location will save $40,000 in annual operating costs. a. Should the landfill be acquired if Bedford desires an 8% return on its investment? Use the net present value method to determine your answer. Chapter 8 Problem 1: 1. Straightforward net present value and payback computations STL Entertainment is considering the acquisition of a sight seeing boat for summer tours along the Mississippi River. The following information is available: Cost of boat $500,000 Service life 10 summer seasons Disposal value at the end of 10 seasons $100,000 Capacity per trip 300 passengers Fixed operating costs per season (including straight line depreciation) $160,000 Variable operating costs per trip $1,000 Ticket price $5 per passenger All operating costs, except depreciation, require cash outlays. On the basis of similar operations in other parts of the country, management anticipates that each trip will be sold out and that 120,000 passengers will be carried each season. Ignore income taxes. Instructions: By using the net present value method, determine whether STL Entertainment should acquire the boat. Assume a 14% desired return on all investments round calculations to the nearest dollar. Chapter 8 Problem 4: 4. Equipment replacement decision Columbia Enterprises is studying the replacement of some equipment that originally cost $74,000. The equipment is expected to provide six more years of service if $8,700 of major repairs are performed in two years. Annual cash operating costs total $27,200. Columbia can sell the equipment now for $36,000; the estimated residual value in six years is $5,000. New equipment is available that will reduce annual cash operating costs to $21,000. The equipment costs $103,000, has a service life of six years, and has an estimated residual value of $13,000. Company sales will total $430,000 per year with either the existing or the new equipment. Columbia has a minimum desired return of 12% and depreciates all equipment by the straight line method. Instructions: a. By using the net present value method, determine whether Columbia should keep its present equipment or acquire the new equipment. Round all calculations to the nearest dollar, and ignore income taxes. b. Columbia’s management feels that the time value of money should be considered in all long term decisions. Briefly discuss the rationale that underlies management’s belief.

acc 305 help needed pt2 445604

Aug 29, 2021 | Uncategorized

#6

A product sells for $135, variable costs are $100, and fixed costs are $68,000. If the selling price can be increased by 21% with a similar increase in variable costs, how many less units would have to be sold to earn $220,000?

	404 units.
	1,428 units.
	3,589 units.
	1,024 units.

#7 9

The following information is available regarding the total manufacturing overhead of Olsen Company for a recent four month period.

	Machine Hours	Mfg. Overhead
April	76,000	$ 179,000
May	50,000	$ 162,000
June	108,000	$ 243,200
July	104,000	$ 190,000

references

Section Break

SB The following information is available regar…

7

Using the high low method, compute the variable element of manufacturing overhead cost per machine hour.

	$2.13 per machine hour.
	$.39 per machine hour.
	$2.01 per machine hour.
	$1.40 per machine hour.

8.

Using the high low method, compute the fixed element of Olsen’s monthly overhead cost. (Round per machine hour cost to 2 decimal paces.)

	$76,000.
	$104,000.
	$92,000.
	$81,200.

9.

Olsen’s projected August operations will require approximately 155,000 machine hours. Using the high low method, compute total manufacturing overhead estimated for August. (Round per machine hour cost to 2 decimal paces.)

	$309,000.
	$162,000.
	$236,200.
	$87,000.

#10

A company with an operating income of $90,000 and a contribution margin ratio of 72% has a margin of safety of:

	$64,800.
	$125,000.
	$321,429.
	It is not possible to determine the margin of safety from the information provided.

#11

The following information is available:

Sales	$ 240,000
Break even sales	$ 150,000
Contribution margin ratio	43%

What is the operating income?

	$0.
	$150,000.
	$64,500.
	$38,700.

acct 550 445625

Aug 29, 2021 | Uncategorized

8. (TCO D) The adjusted trial balance of Cavamanlis Co. as of December 31, 2011 contains the following.

Account Titles	Dr	Cr
Cash	$18,972
Accounts Receivable	6,920
Prepaid Rent	4,280
Equipment	20,050
Accumulated Depreciation		$5,895
Notes Payable		5,700
Accounts Payable		4,472
Common Stock		20,000
Retained Earnings		15,310
Dividends	4,000
Service Revenue		12,590
Salaries Expense	6,840
Rent Expense	2,760
Depreciation Expense	145
Interest Expense	83
Interest Payable		83
	$64,050	$64,050

Instructions:

Prepare in good form a balance sheet for the year ended December 31, 2011. (Points : 15)

perpetual inventory problem during january a company that uses a perpetual inventory 445628

Aug 29, 2021 | Uncategorized

Part 9 (24 points)
Perpetual Inventory Problem
During January, a company that uses a perpetual inventory system had a beginning
inventory, purchases, and sales as follows:
Units Unit Cost
Beginning inventory 60 $12.00
Jan 5. Purchase 40 $14.00
Jan 15. Sale 49 ?
Complete the framed area/ ????? of the inventory cards below under each of the assumptions listed.
1. SPECIFIC IDENTIFICATION (25 sold from the beginning inventory and 24 from Jan. 5 purchase).
Purchases Cost of Goods Sold Inventory Balance
Date Units Cost Total Units Cost Total Units Cost Total
Jan. 1 60 $12.00 $720.00 60 $12.00 $720.00
Jan. 5 40 $14.00 $560.00 60 $12.00
40 $14.00 $1,280.00
Jan. 15 ? ? ?????????????????????
?????????????????????????????????
2. LAST IN FIRST OUT
Purchases Cost of Goods Sold Inventory Balance
Date Units Cost Total Units Cost Total Units Cost Total
Jan. 1 60 $12.00 $720.00 60 $12.00 $720.00
Jan. 5 40 $14.00 $560.00 60 $12.00
40 $14.00 $1,280.00
Jan. 15 ????????????????????????????
3. FIRST IN FIRST OUT
Purchases Cost of Goods Sold Inventory Balance
Date Units Cost Total Units Cost Total Units Cost Total
Jan. 1 60 $12.00 $720.00 60 $12.00 $720.00
Jan. 5 40 $14.00 $560.00 60 $12.00
40 $14.00 $1,280.00
Jan. 15 ?????????????????????????????????????????????????????
4. WEIGHTED AVERAGE
Purchases Cost of Goods Sold Inventory Balance
Date Units Cost Total Units Cost Total Units Cost Total
Jan. 1 60 $12.00 $720.00 60 $12.00 $720.00
Jan. 5 40 $14.00 $560.00 60 $12.00
40 $14.00 $1,280.00
Jan. 15 ?????????????????????????????????????????

really need your help 445633

Aug 29, 2021 | Uncategorized

9.Journalize the six entries to adjust the accounts at December 31. (Hint: One of the accounts was affected by two different adjusting entries).

	Unadjusted Trial Balance		Adjusted Trial Balance
	Debit Balances	Credit Balances	Debit Balances	Credit Balances
Cash	5,000		5,000
Accounts Receivable	32,000		32,600
Supplies	3,600		100
Prepaid Insurance	4,000		1,400
Equipment	11,000		11,000
Accumulated Depreciation				1,700
Wages Payable				2,000
Unearned Fees		8,900		3,500
Ann Cole, Capital		22,000		22,000
Fees Earned		69,000		75,000
Wages Expense	44,300		46,300
Supplies Expense			3,500
Insurance Expense			2,600
Depreciation Expense			1,700
Total	99,900	99,900	104,200	104,200

accounting 2 445634

Aug 29, 2021 | Uncategorized

9. A machine with a cost of $146,000 and accumulated depreciation of $101,000 is sold for $58,000 cash. The amount that should be reported as a source of cash under cash flows from investing activities is:

$13,000
$45,000
$58,000
Zero. This is a financing activity.
Zero. This is an operating activity.

8. Becker Corporation paid cash dividends totaling $75,000 during its most recent fiscal year. How should this information be reported on Becker’s statement of cash flows?

In investing activities as a use of funds.
In financing activities as a use of funds.
In operating activities as a source of funds.
In financing activities as a source of funds.
In investing activities as a source of funds.

10. The indirect method for the preparion of the operating activites section of the statement of cash flows:

Is required if the company is a merchandiser
Must not be used in all circumstances
Separately lists each major item of operating cash payments
Separately lists each major item of operating cash receipts
Reports net income and then adjust it for items necessary to determine net cash provided or used by operating activities

12. One of several ratios that reflects solvency includes the:

Days’ sales in inventory
Times interest earned ratio
Total asses turnover
Acid test ratio
Current ratio

13. Common size statement:

Show the dollar amount of change for financial statement items
Reveal patterns in data across successive periods
Compare financial statements over time
Reveal changes in the relative importance of each financial statement item
Do not emphasize the relative importance of each item

accounting essay question 445638

Aug 29, 2021 | Uncategorized

ABC Inc. was incorporated on 1/15/12. Their corporate charter authorized the following capital stock:

Preferred Stock: 7%, par value $100 per share, 100,000 shares.

Common Stock: $1 par value, 500,000 shares.

The following transactions occurred during the year:

1/19/12 %u2013 Issued 100,000 shares of common stock for $17 cash per share.

1/31/12 %u2013 Issued 3,000 shares of preferred stock for $115 cash per share.

11/1/12 %u2013 Repurchased 30,000 shares of common stock for $22 cash per share.

12/1/12 %u2013 Declared and paid a total dividend of $95,000.

Required:

1. Prepare the journal entry for each transaction listed above.

2. In your own words, explain the main differences between common and preferred stock.

cost accounting fifo equivalent unit calculation 445642

Aug 29, 2021 | Uncategorized

ABC Company produces a single product. Material A is added at the start of the production process and packaging material B is added at the end of the process. Conversion costs are incurred uniformly throughout the process. Inspection takes place when manufacturing is completed, but before packaging Material B is added. Normal spoilage for this production process is 5% of good output. Production data for this year was as follows:

Beginning work in process inventory (80% complete) 2,000 units

Units started 18,000 units

Good units completed and sold 16,000 units

Ending work in process inventory (40% complete) 1,000 units

What are equivalent units for Material A, Material B, and Conversion costs? (Use FIFO process costing to find equivalent units for Material A, Material B and Conversion Cost)

Show work, please.

Thank you.

federal taxation 445647

Aug 29, 2021 | Uncategorized

Abigail, Bobby, and Claudia are equal owners in Lafter, an S corporation that was a C corporation several years ago. While Abigail and Bobby actively participate in running the company, claudia has a separate day job and is a passive owner. Consider the following information for 2012:

As of January 1, 2012 Abigail, Bobby, and Claudia each have a basis in Lafter stock of $15,000 and debt basis of $0. On January 1, the stock basis is also the at risk amount for each shareholder.
Bobby and Claudia also are passive owners in Aggressive LLC, which allocated business income of $14,000 to each of them in 2012. Neither has any other source of passive income (besides Lafter, for Claudia).
On March 31, 2012 Abigail leands $5,000 of her own money to Lafter.
Anticipating the need for basis to deduct a loss, on April 4, 2012, Bobby takes out a $10,000 loan to make a $10,000 contribution to Lafter. Bobby uses his automobile ($12,000 fair market value) as collateral.
Later has an accumulated adjustments account balance of $45,000 as of January 1, 2012
Lafter has C corporation earnings and profits of $15,000 as of January 1, 2012

During 2013, Lafter made several changes to its business approach and reported $18,000 of business income, computed as follows:

Sales revenue $208,000

Cost of goods sold (90,000)

Salary to Abigail (45,000)

Salary to Bobby (45,000)

Marketing expense (10,000)

Business income $18,000

Lafter also reported a lontg term capital gain of $24,000 in 2013.
Lafter made a cash distribution on July 1, 2013 of $20,000 to each shareholder.

b. What amount of gain/income does each shareholder recognize from the cash distribution on July 1, 2013?

9 5 current liabilities and ratios 445662

Aug 29, 2021 | Uncategorized

Several accounts that appeared on Kruses 2010 balance sheet are as follows:

Accounts payable 55,000

marketable securities 40,000

accounts recievable 180,000

notes payable, 12%, due in 60 days 20,000

capital stock 1,150,000

salaries payable 10,000

cash 15,000

equipment 950,000

taxes payable 15,000

retained earnings 250,000

inventory 85,000

allowance for doubtful accounts 20,000

land 600,000

1. Prepare the current liabilities section of Kruses 2010 balance sheet

2. compute Kruses working capital

3. compute kruses current ratio. What does this ratio indicate about kruses condition?

accounting homework 445663

Aug 29, 2021 | Uncategorized

The accounts in the ledger of Monroe Entertainment Co. are listed in alphabetical order. All accounts have normal balances.

Account Payable $454 Fees Earned $2,425

Accounts Receivable $ 960 Insurance Expense $457

Investment $ 4,269 Land $1,735

Cash $ 688 Wages Expense $883

Drawing $ 496 Capital $6,609

Determine the total of all the assets.

Select the correct answer.

$2,425

$3,567

$6,609

$1,085

$7,652

The accounts in the ledger of Monroe Entertainment Co. are listed in alphabetical order. All accounts have normal balances.

Account Payable $481 Fees Earned $2,262

Accounts Receivable $631 Insurance Expense $431

Investment $4,221 Land $1,702

Cash $796 Wages Expense $727

Drawing $439 Capital $6,204

Determine the total of all the liabilities.

Select the correct answer.

$2,262

$7,350

$481

$1,104

$6,204

The accounts in the ledger of Monroe Entertainment Co. are listed in alphabetical order. All accounts have normal balances.

Account Payable $408 Fees Earned $2,014

Accounts Receivable $855 Insurance Expense $410

Investment $4,658 Land $1,606

Cash $543 Wages Expense $739

Drawing $369 Capital $6,758

Determine the net income.

Select the correct answer.

$865

$408

$7,662

$2,014

$6,758

job order costing 445665

Aug 29, 2021 | Uncategorized

ACCT 3331 Managerial Accounting

Question #1 (of 3) Question #2 (of 3) Question #3 (of 3)

*****PLEASE ANSWER ALL***

Use the sub navigation below to navigate within this series of questions.

Savallas Company is highly automated and uses computers to control manufacturing operations. The company uses a job order costing system and applies manufacturing overhead cost to products on the basis of computer hours. The following estimates were used in preparing the predetermined overhead rate at the beginning of the year:


Computer hours		86,000
Fixed manufacturing overhead cost	$	1,270,000
Variable manufacturing overhead per computer hour	$	3.90

During the year, a severe economic recession resulted in cutting back production and a buildup of inventory in the company%u2019s warehouse. The company%u2019s cost records revealed the following actual cost and operating data for the year:


Computer hours		50,000
Manufacturing overhead cost	$	1,008,000
Inventories at year end:
Raw materials	$	420,000
Work in process	$	170,000
Finished goods	$	1,010,000
Cost of goods sold	$	2,760,000

Required:

1.	Compute the company%u2019s predetermined overhead rate for the year. (Round your answer to 2 decimal places. Omit the “$” sign in your response.)

Predetermined overhead rate

$ per hour

2.	Compute the underapplied or overapplied overhead for the year. (Round your intermediate calculations to 2 decimal places and final answer to the nearest dollar amount. Input the amount as a positive value. Omit the “$” sign in your response.)

(Click to select) Overapplied Underapplied overhead cost

$

3.	Assume the company closes any underapplied or overapplied overhead directly to cost of goods sold. Prepare the appropriate entry. (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount. Omit the “$” sign in your response.)

General Journal	Debit	Credit
(Click to select) Raw materials Salaries expense Depreciation expense Cost of goods sold Accounts payable Work in process Finished goods Manufacturing overhead
(Click to select) Manufacturing overhead Raw materials Work in process Cost of goods sold Accounts payable Depreciation expense Finished goods Salaries expense

4.

Assume that the company allocates any underapplied or overapplied overhead to work in process, finished goods, and cost of goods sold on the basis of the amount of overhead applied during the year that remains in each account at the end of the year. These amounts are $37,340 for work in process, $224,040 for finished goods, and $672,120 for cost of goods sold. Prepare the journal entry to show the allocation. (Round your intermediate calculations and percentage values to 2 decimal places and final answers to the nearest dollar amount. Omit the “$” sign in your response.)

General Journal	Debit	Credit
(Click to select) Salaries expense Cost of goods sold Work in process Accounts payable Manufacturing overhead Finished goods Raw materials Depreciation expense
(Click to select) Cost of goods sold Accounts payable Raw materials Work in process Salaries expense Finished goods Manufacturing overhead Depreciation expense
(Click to select) Finished goods Depreciation expense Salaries expense Manufacturing overhead Accounts payable Raw materials Work in process Cost of goods sold
(Click to select) Depreciation expense Manufacturing overhead Accounts payable Raw materials Finished goods Cost of goods sold Work in process Salaries expense

5.	How much higher or lower will net operating income be for the year if the underapplied or overapplied overhead is allocated rather than closed directly to cost of goods sold? (Round your intermediate calculations and percentage values to 2 decimal places and final answers to the nearest dollar amount. Input the amount as a positive value. Omit the “$” sign in your response.)

Net operating income will be $ (Click to select) lesser greater if the (Click to select) underapplied overapplied overhead is allocated among work in process, finished goods, and cost of goods sold rather than closed directly to cost of goods sold.

Your instructor has not provided any instructions for this assignment.

due date: 06/16/2013 at 11:00 PM
attempts: 1 of 2 attempts
Policies in place at the START of this assignment attempt will be in effect as you take it. If your instructor makes any policy edits while you are in the middle of an assignment attempt, the new policies will only apply to subsequent assignment attempts.
Note : this assignment will be automatically submitted to your instructor on the due date even if your work is incomplete.

Question #1 (of 3)
Question #2 (of 3)
Question #3 (of 3)

= Completed = Incomplete

streuling enterprises a merchandising firm had an inventory of 38 000 units 445668

Aug 29, 2021 | Uncategorized

Assignment #2 • This assignment is composed of 3 main questions on Unit 4. • You are required to prepare and/or complete and then submit the appropriate financial statements and calculations. Please show the steps you used to compute the figures as partial marks can be assigned for proper formulations even if the calculated total is incorrect. • Clearly identify on the page footer your name and student number. • This paper will be marked out of 50 with your overall result counting towards 10% of your final grade. Please send me your assignment through the dropbox below. ________________________________________ Q1. (15 marks) On March 31, Streuling Enterprises, a merchandising firm, had an inventory of 38,000 units, and it had accounts receivable totalling $85,000. Sales, in units, have been budgeted as follows for the next four months: April 60,000 May 75,000 June 90,000 July 81,000 Streuling’s board of directors has established a policy to commence in April that the inventory at the end of each month should contain 40% of the units required for the following month’s budgeted sales. The selling price is $2 per unit. One third of sales are paid for by customers in the month of the sale; the balance is collected in the following month. Required: a) Prepare a merchandise purchases budget showing how many units should be purchased for each of the months April, May, and June. Remember there is a difference between units and $of the units use the right figures in the right spots b) Prepare a schedule of expected cash collections for each of the months April, May, and June. Remember the existing A/R balance ________________________________________ Q2. (15 marks) The Doley Company has planned the following sales for the next three months: January February March Budgeted Sales $40,000 $50,000 $70,000 Sales are made 20% for cash and 80% on account. From experience, the company has learned that a month’s sales on account are collected according to the following pattern: Month of sale 60% First month following sale 30% Second month following sale 8% Uncollectible 2% The company requires a minimum cash balance of $5,000 to start a month. The beginning cash balance in March is budgeted to be $6,000. Required a) Compute the budgeted cash receipts for March. Rember to think in terms of when actual cash is planned to be received. If you are not going to receive the cash it is not part of the budget. Also pay close attention to cash vs credit sales b) The following additional information has been provided for March: Inventory purchases (all paid in cash in March) $28,000 Operating Expenses (all paid in cash in March) $40,000 Depreciation expense for March $5,000 Dividends paid in March $4,000 Prepare a cash budget in good form for the month of March, using this information and the budgeted cash receipts you computed for part a) above. The company can borrow in any dollar amount and will not pay interest until April. ________________________________________ Q3. (20 marks) Fougere Realtors, Inc. specializes in home re sales. It earns revenue from selling fees. Fougere Realtors’ major costs are commissions for salespersons, listing agents, and listing companies. Its business has improved steadily over the last ten years. As usual, Chris Fougere, the managing partner of Fougere Realtors, Inc., received a report summarizing the performance for the most recent year. Fougere Realtors, Inc. Performance Report For the year ended December 31, 2007 Budget Actual Variance Number of home re sales 180 202 22 F Variable expenses Sales commissions $1,102,950 $1,205,183 $102,233 U Automobile 36,000 39,560 3,560 U Advertising 171,000 192,690 21,690 U General overhead 656,100 716,970 60,870 U Total $1,966,050 $2,154,403 $188,353 U Fixed expenses General overhead 60,000 62,300 2,300 U Total expenses $2,026,050 $2,216,703 $190,653 U Required: a) Explain the major weakness of this performance report and why all the variances for the variable expenses are unfavourable (U) (5 marks) b) As a first step in helping Chris Fougere to evaluate cost / expense control in the organization, complete the following for the year ended December 31, 2007, assuming the only cost driver is the number of home re sales. (Note: Indicate any variance as either favourable (F) or unfavourable (U).) (15 marks) Budget Actual Variance Number of home re sales 202 202 0 Variable expenses Sales commissions $ $ 1,205,183 _________ Automobile $ _________ 39,560 _________ Advertising $ _________ 192,690 _________ General overhead $ _________ 716,970 _________ Total $ _________ $2,154,403 _________ Fixed expenses General overhead $ _________ 62,300 _________ Total expenses $ $2,216,703

Attachments:

Assignment2.docx

equity income question 445678

Aug 29, 2021 | Uncategorized

Adelman Company owns 45% of the outstanding voting common stock of Craig Corp. and has the ability to significantly influence the investee’s operations. On January 3, 2011, the balance in the Investment in Craig Corp.account was $462,000. Amortization associated with this acquisition is $10,000 per year. During 2011, Craig earned a net income of $105,000 and paid cash dividends of $20,000. Previously in 2010, Craig had sold inventory costing $28,000 to Adelman for $40,000. All but 20% of that inventory had been sold to outsiders by Adelman during 2010. Additional sales were made to Adelman in 2011 at a transfer price of $60,000 that had cost Craig $45,000. Only 10% of the 2011 purchases had not been sold to outsiders by the end of 2011.
Required:

(A) What amount of unrealized intra entity inventory profit should be deferred by Adelman at December 31, 2010?
(B) What amount of unrealized intra entity profit should be deferred by Adelman at December 31, 2011?
(C) What amount of equity income would Adelman have recognized in 2011 from its ownership interest in Craig?
(D) What was the balance in the Investment in Craig Corp. account at December 31, 2011?

azalea hills hospital 445685

Aug 29, 2021 | Uncategorized

The administrator of Azalea Hills Hospital would like a cost formula linking th costs involved in admitting patients to the number of patients admitted during a month. The admitting department’s costs and the number of patients admitted during the immediately preceding eight months are given in the following table;

Month	Number of paitents Admitted	Admitting department costs
May	1800	$14,700.00
June	1900	$15,200.00
July	1700	$13,700.00
August	1600	$14,000.00
September	1500	$14,300.00
October	1300	$13,100.00
November	1100	$12,800.00
December	1500	$14,600.00

A. Use the high low method to establish the fixed and variable components of admitting costs

B. Express the fixed and variable components of admitting costs as a cost formula in the linear equation for of Y =a +bX

acct budgeting 445474

Aug 29, 2021 | Uncategorized

1) Fantastic Futons manufactures futons. The estimated number of futon sales for the first three months of 2010 are as follows:

January	40,000
February	50,000
March	60,000

Finished goods inventory at the end of 2009 was 12,000 units. On average, 25 percent of the futons are produced during the month before they are sold, which normally accounts for the ending balance in finished goods inventory. The planned selling price is $150 per unit.What would be the sales budget for March?

2) Fantastic Futons manufactures futons. The estimated number of futon sales for the first three months of 2010 are as follows:

January	40,000
February	50,000
March	60,000

Finished goods inventory at the end of 2009 was 12,000 units. On average, 25 percent of the futons are produced during the month before they are sold, which normally accounts for the ending balance in finished goods inventory. The planned selling price is $150 per unit.Fantastic Futons buys direct materials for the futons in cloth rolls priced at $80 each. Each roll provides direct material for 40 futons. There was one roll in the direct materials inventory at the beginning of January, and the company expects to have four rolls in inventory at the end of the month. Assuming the production budget calls for 60,000 units to be produced in January, what would be the amount of the cloth rolls direct materials purchases budget for that month?

3) Fantastic Futons goes through two departments in the production process. Each futon requires two direct labor hours in Department A and one hour in Department B. Labor cost is $8 per hour in Department A and $10 per hour in Department B.Assuming the amount budgeted to be produced in January is 30,000 units, what is the budgeted direct labor cost for January?

4) The projections of direct materials purchases that follow are for the Sombo Corporation.

	Purchases on Account	Cash Purchases
December	$40,000	$30,000
January	60,000	33,000
February	50,000	35,000
March	70,000	25,000

The company pays for 60 percent of purchases on account in the month of purchase and 40 percent in the month following the purchase. What is the expected cash payment for direct materials for the month of January?

5) Fallgatter, Inc., expects to sell 17,500 units. Each unit requires 3 pounds of direct materials at $12 per pound and 2 direct labor hours at $10 per direct labor hour. The overhead rate is $8 per direct labor hour. The beginning inventories are as follows: direct materials, 2,000 pounds; finished goods, 2,500 units. The planned ending inventories are as follows: direct materials, 5,600 pounds; finished goods, 3,000 units.Given a planned production of 10,000 units, what are the planned direct materials purchases?

6) Leaverton’s forecast of sales is as follows: July, $60,000; August, $90,000; September, $130,000. Sales are normally 80 percent cash and 20 percent credit in any month. Credit sales are collected in full in the following month. Merchandise cost averages 60 percent of sales price. The company desires an inventory as of September 30 of $52,000. The inventory as of June 30 was $25,000.Total cash receipts for August will be

accounting help 445476

Aug 29, 2021 | Uncategorized

1.A fixed cost may include all of the following except:

Rent for the warehouse.

Annual salary of the CEO.

Depreciation.

Sales commission expense.

2.The contribution margin ratio may be expressed as:

A percentage of revenue.

A total dollar amount for the period.

A contribution margin per unit.

Total contribution margin amount.

3.Variable costs would include:

Rent expense.

Depreciation expense.

Sales commission expense.

Executive salaries expense.

4 In deciding whether or not to accept a special order, what is the opportunity cost of using machinery for which the firm has sufficient excess capacity to accept the order?

	The historical cost of the machinery.
	The undepreciated cost of the machinery.
	The same machinery cost allocated to regular production orders.
	Zero.

5 When constrained by a limiting resource, managers often seek to produce those products which have:

The highest selling prices.

The lowest average cost per unit.

The highest contribution margin per unit of limiting resource.

The highest contribution margin ratios.

6.Opportunity costs represent:

	Cash expenditures for business opportunities.
	Benefits foregone.
	Costs avoided by making a particular decision.
	Indirect costs typically classified as manufacturing overhead.

accounting 1b 445481

Aug 29, 2021 | Uncategorized

1. Given the following cost data, what type of cost is shown?

Cost per unit	# of units
$5,000	1
$2,500	2
$1,667	3
$1,250	4

Answer

		mixed cost
		variable cost
		fixed cost
		none of the above

2. A business operated at 100% of capacity during its first month, with the following results:

Sales (160 units)		$160,000
Production costs (200 units):
Direct materials	$100,000
Direct labor	20,000
Variable factory overhead	10,000
Fixed factory overhead	4,000	134,000

Operating expenses:
Variable operating expenses	$ 12,000
Fixed operating expenses	2,000	14,000

What is the amount of the manufacturing margin that would be reported on the variable costing income statement?

Answer

		$30,000
		$38,000
		$56,000
		$44,000

3.A business operated at 100% of capacity during its first month and incurred the following costs:

Production costs (5,000 units):
Direct materials	$70,000
Direct labor	20,000
Variable factory overhead	10,000
Fixed factory overhead	2,000	$102,000

Operating expenses:
Variable operating expenses	$17,000
Fixed operating expenses	1,000	18,000

If 1,000 units remain unsold at the end of the month and sales total $150,000 for the month, what would be the amount of income from operations reported on the absorption costing income statement?

Answer

		$50,400
		$70,000
		$52,000
		$68,400

accounting hw 445482

Aug 29, 2021 | Uncategorized

1. Grace Greeting Cards Incorporated is starting a new business venture and is in the process of evaluating its product lines. Information for one new product, traditional parchment grade cards, is as follows:

%u2219 For 16 times each year, a new card design will be put into production. Each new design will require $200 in setup costs.

%u2219 The parchment grade card product line incurred $75,000 in development costs and is expected to be produced over the next four years.

%u2219 Direct costs of producing the designs average $0.50 each.

%u2219 Indirect manufacturing costs are estimated at $50,000 per year.

%u2219 Customer service expenses average $0.10 per card.

%u2219 Sales are expected to be 2,500 units of each card design. Each card sells for $3.50.

%u2219 Sales units equal production units each year.

What is the total estimated life cycle operating income?

2. Jane’s Medical Equipment Company manufactures hospital beds. Its most popular model, Deluxe, sells for $5,000. It has variable costs totaling $2,800 and fixed costs of $1,000 per unit, based on an average production run of 5,000 units. It normally has four production runs a year, with $700,000 in setup costs each time. Plant capacity can handle up to six runs a year for a total of 30,000 beds.A competitor is introducing a new hospital bed similar to Deluxe that will sell for $4,000. Management believes it must lower the price to compete. Marketing believes that the new price will increase sales by 25% a year. The plant manager thinks that production can increase by 25% with the same level of fixed costs. The company sells all the Deluxe beds it can produce. Question 1: What is the annual operating income from Deluxe at the price of $5,000? Question 2: What is the annual operating income from Deluxe if the price is reduced to $4,000 and sales in units increase by 25%?

3. For supply item MT, Bluesky Company has been ordering 150 units based on the recommendation of the salesperson who calls on the company monthly. The company has hired a new purchasing agent, who wants to start using the economic order quantity method and its supporting decision elements. She has gathered the following information:

Annual demand in units 300

Days used per year 300

Lead time, in days 20

Ordering costs $125

Annual unit carrying costs $25

Determine the EOQ, average inventory, orders per year, average daily demand, reorder point, annual ordering costs, and annual carrying costs.

4. Gardenia Company has the following projected account balances for June 30, 20X9:

Accounts payable $ 60,000 Sales $ 800,000

Accounts receivable $ 100,000 Capital stock $ 400,000

Depreciation, factory $ 36,000 Retained earnings ?

Inventories (5/31 & 6/30) $ 180,000 Cash $ 56,000

Direct materials used $ 200,000 Equipment, net $ 240,000

Office salaries $ 80,000 Buildings, net $ 400,000

Insurance, factory $ 4,000 Utilities, factory $ 16,000

Plant wages $ 140,000 Selling expenses $ 50,000

Bonds payable $ 160,000 Maintenance, factory $ 28,000

Prepare a budgeted income statement AND a budgeted balance sheet as of June 30, 20X9.

5. Novacar Company manufactures automobiles. The red car division sells its red cars for $25,000 each to the general public. The red cars have manufacturing costs of $12,500 each for variable and $5,000 each for fixed costs. The division’s total fixed manufacturing costs are $25,000,000 at the normal volume of 5,000 units.

The blue car division has been unable to meet the demand for its cars this year. It has offered to buy 1,000 cars from the red car division at the full cost of $13,000. The red car division has excess capacity and the 1,000 units can be produced without interfering with the outside sales of 5,000. The 6,000 volume is within the division’s relevant operating range.Explain whether the red car division should accept the offer. Support your decision showing all calculations.

i need step by step sloutions thanks 445483

Aug 29, 2021 | Uncategorized

1) Haley Company estimates its sales at 100,000 units in the first quarter and that sales will increase by 10,000 units each quarter over the year. They have, and desire, a 25% ending inventory of finished goods. Each unit sells for $35. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale.

Cash collections for the third quarter are budgeted at

c. $4,137,000.

2) Rob Haughton is the North Division manager and his performance is evaluated by executive management based on Division ROI. The current controllable margin for North Division is $46,000. Its current operating assets total $210,000. The division is considering purchasing equipment for $40,000 that will increase sales by an estimated $10,000, with annual depreciation of $10,000. If the equipment is purchased, what will happen to the return on investment for the division?

c. A decrease of 3.5%

3) A company’s past experience indicates that 60% of its credit sales are collected in the month of sale, 30% in the next month, and 5% in the second month after the sale; the remainder is never collected. Budgeted credit sales were:

January $240,000

February 144,000

March 360,000

The cash inflow in the month of March is expected to be

a. $271,200.

management accounting 11 questions answers eg 1a 2b 445493

Aug 29, 2021 | Uncategorized

1)The opportunity cost of making a component part in a factory with no excess capacity is the:

	net benefit foregone from the best alternative use of the capacity required.
	total manufacturing cost of the component.
	fixed manufacturing cost of the component.
	variable manufacturing cost of the component.

2) A company has a standard cost system in which fixed and variable manufacturing overhead costs are applied to products on the basis of direct labor hours. A fixed manufacturing overhead volume variance will necessarily occur in a month in which there is a fixed manufacturing overhead budget variance.

	True
	False

3) Todco planned to produce 3,000 units of its single product, Teragram, during November. The standard specifications for one unit of Teragram include six pounds of material at $0.30 per pound. Actual production in November was 3,100 units of Teragram. The accountant computed a favorable materials purchase price variance of $380 and an unfavorable materials quantity variance of $120. Based on these variances, one could conclude that:

	more materials were used than were purchased.
	more materials were purchased than were used.
	the actual usage of materials was less than the standard allowed.
	the actual cost of materials was less than the standard cost.

4)The cost of a resource that has no alternative use in a make or buy decision problem has an opportunity cost of zero.

	True
	False

5)An unfavorable direct labor efficiency variance could be caused by:

	an unfavorable variable overhead rate variance.
	a favorable materials quantity variance.
	an unfavorable materials quantity variance.
	a favorable variable overhead rate variance.

6) The fixed manufacturing overhead volume variance will be unfavorable if production volume is less than sales volume.

	True
	False

7) If by dropping a product a firm can avoid more in fixed costs than it loses in contribution margin, then the firm is better off economically if the product is dropped.

	True
	False

8) Joint costs are not relevant to the decision to sell a product at the split off point or to process the product further.

	True
	False

9) When a company has a production constraint, the product with the highest contribution margin per unit of the constrained resource should be given highest priority.

	True
	False

10) An avoidable cost is a cost that can be eliminated (in whole or in part) as a result of choosing one alternative over another.

	True
	False
11) The Malcolm Company uses a standard cost system in which manufacturing overhead costs are applied to products on the basis of standard direct labor hours (DLHs). The standards call for 4 hours of direct labor per unit produced. The following data pertain to the company’s manufacturing overhead for the month of July:

Actual fixed manufacturing overhead costs incurred	$28,460
Denominator activity	6,305	DLHs
Number of units produced	3,000	units
Budget variance	$3,240	Unfavorable

The Fixed component of the predetermined overhead rate for June is: (Round your answer to 2 decimal places.)

	$4.00
	$4.77
	$4.51
	$4.11

10 managerial accounting multiple choice 445494

Aug 29, 2021 | Uncategorized

1. PH Toy is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $36 and PH Toy would sell it for $78. The cost to assemble the product is $25 per unit and PH Toy believes the market would support a price of $102 on the assembled unit. What decision should PH Toy Company make? (Points : 3) A) Sell before assembly, the company will be better off by $1 per unit. B) Sell before assembly, the company will be better off by $24 per unit. C) Process further, the company will be better off by $35 per unit. D) Process further, the company will be better off by $17 per unit. 2. Which of the following is not a benefit of budgeting? (Points : 3) A) It promotes efficiency. B)It deters waste. C)It is a basis for performance evaluation. D) It assures the company that management will perform at a particular operating level. 3. The transfer price approach that conceptually should work the best is the (Points : 3) A) cost based approach B) market based approach C) negotiated price approach D) time and material pricing approach. 4. Which statement is true of an opportunity cost? (Points : 3) A) It is the cost of a special order option. B) It is always variable. C) It is the potential benefit as a result of following an alternative course of action. D) It is a sunk cost. 5. Hermantic Inc. can produce 100 units of a component part with the following costs: Direct Materials $45,000 Direct Labor $20,000 Variable Overhead $48,000 Fixed Overhead $33,000 If Hermantic, Inc. purchases the components externally for $120,000, by what amount will its total costs change if none of the fixed overhead is avoidable? (Points : 3) A) An increase of $120,000 B) An increase of $26,000 C) An increase of $7,000 D) A decrease of $33,000 6. The cost plus pricing approach’s major advantage is (Points : 3) A) it considers customer demand. B) that sales volume has no effect on per unit costs. C) it is simple to compute. D) it can be used to determine a product’s target cost. 7. Seville Company manufactures a product with a unit variable cost of $42 and a unit sales price of $75. Fixed costs were $80,000 when 10,000 units were produced and sold. The company has a one time opportuity to sell an additional 2,000 units at $55 each in an international market which would not affect its present sales. The company has sufficient capacity to produce the additional units. How much is the relevant income effect of accepting the special order? (Points : 3) A) $84,000 B) $40,000 C) $26,000 D) $10,000 8. Which of the following scenarios would make a manager indifferent about selling a product at the split off point or processing it further? (Points : 3) A) When incremental revenues > incremental costs. B) When incremental revenues < incremental costs. C) When incremental revenues = incremental costs. D) When incremental revenues > joint costs. 9. Which of the following will make the most effective environment for budget acceptance? (Points : 3) A) The budget is prepared by top management. B) The budget preparation contains input from all levels of management. C) The budget is prepared by department heads. D) Acceptance has nothing to do with who prepares budgets. 10. The maximum transfer price from the buying division’s standpoint is the (Points : 3) A) total cost + opportunity cost B) variable cost + opportunity cost. C) external purchase price. D) external purchase price + oppportunity cost.

acc 305 help needed 445497

Aug 29, 2021 | Uncategorized

#1

If a product sells for $10, variable costs are $6 and fixed costs are $160,000, what would total sales have to be in order to break even?

	$400,000.
	$240,000.
	$160,000.
	$640,000.

#2

If unit sales prices are $28 and variable costs are $18 per unit, how many units would have to be sold to break even if fixed costs equal $20,000?

	36,000.
	200,000.
	56,000.
	2,000

#3

If the unit sales price is $48 and variable costs are $45, how many units have to be sold to earn a profit of $3,600 if fixed costs equal $36,000?

	37,200.
	12,000.
	13,200.
	1,200.

#4

If the unit sales price is $15, variable costs are $6 per unit and fixed costs are $20,000 what is the contribution ratio per unit?

	120%.
	167%.
	22%.
	60%

#5

If the unit sales price is $26, variable costs are $13 per unit and fixed costs are $14,000, how many units must be sold to earn an income of $260,000?

rev: 10_18_2012

	1,077.
	18,923.
	20,000.
	21,077.

accounting help please 445498

Aug 29, 2021 | Uncategorized

1.

If a product sells for $16, variable costs are $6 and fixed costs are $220,000, what would total sales have to be in order to break even

2.

If unit sales prices are $7 and variable costs are $5 per unit, how many units would have to be sold to break even if fixed costs equal $8,000?

3.

If the unit sales price is $7 and variable costs are $3, how many units have to be sold to earn a profit of $3,600 if fixed costs equal $5,000?

4.

If the unit sales price is $15, variable costs are $6 per unit and fixed costs are $22,000 what is the contribution ratio per unit?

5.

If the unit sales price is $16, variable costs are $4 per unit and fixed costs are $14,000, how many units must be sold to earn an income of $160,000?

6.

A product sells for $175, variable costs are $140, and fixed costs are $100,000. If the selling price can be increased by 29% with a similar increase in variable costs, how many less units would have to be sold to earn $300,000?

7.

The following information is available regarding the total manufacturing overhead of Olsen Company for a recent four month period.

	Machine Hours	Mfg. Overhead
April	82,000	$ 182,000
May	50,000	$ 165,000
June	111,000	$ 268,700
July	107,000	$ 193,000

7a.

Using the high low method, compute the variable element of manufacturing overhead cost per machine hour.
7b.
Using the high low method, compute the fixed element of Olsen’s monthly overhead cost.
7c.
Olsen’s projected August operations will require approximately 170,000 machine hours. Using the high low method, compute total manufacturing overhead estimated for August

8.
A company with an operating income of $88,000 and a contribution margin ratio of 70% has a margin of safety of:
9.
the following information is available:

Sales	$ 250,000
Break even sales	$ 160,000
Contribution margin ratio	44%

What is the operating income?

10.
A company with monthly revenue of $142,000, variable costs of $55,500, and fixed costs of $42,200 has a contribution margin of:

11.
A company with monthly fixed costs of $320,000 expects to earn monthly operating income of $58,000 by selling 14,000 units per month. What is the company’s expected unit contribution margin?

12.

If monthly fixed costs are $30,000 and the contribution margin ratio is 30%, the monthly sales volume required to break even is:

13.

Product X sells for $34 per unit and has related variable costs of $20 per unit. The fixed costs of producing product X are $76,000 per month. How many units of product X must be sold each month to earn a monthly operating income of $64,000?

14.

The following data are available for product no. CK74, manufactured and sold by Ruby Corporation:

Maximum capacity with present facilities	12,000 units
Total fixed cost (per period)	$ 1,047,800
Variable cost per unit	$ 126.00
Sales price per unit	$ 188.00

14a.
The contribution margin per unit for product no. CK74 is
14b.
The number of units of CK74 that Ruby must sell to break even is (rounded, if necessary
15.

Accents Associates sells only one product, with a current selling price of $30 per unit. Variable costs are 30% of this selling price, and fixed costs are $28,000 per month. Management has decided to reduce the selling price to $25 per unit in an effort to increase sales. Assume that the cost of the product and fixed operating expenses are not changed by this reduction in selling price.

15a. At the current selling price of $30 per unit, the contribution margin ratio is: 15b.

At the current selling price of $30 per unit, the dollar volume of sales per month necessary for Accents to break even is:

15c.

At the current selling price of $30 per unit, what dollar volume of sales per month is required for Accents to earn a monthly operating income of $8,000?

help accounting 445510

Aug 29, 2021 | Uncategorized

1. Record the inventory, purchases, and cost of merchandise sold data in a perpetual

inventory record similar to the one illustrated in Exhibit 3, using the first in, firstout

method.

2. Determine the total sales and the total cost of merchandise sold for the period.

Journalize the entries in the sales and cost of merchandise sold accounts. Assume

that all sales were on account.

3. Determine the gross profit from sales for the period.

4. Determine the ending inventory cost.

March 3 Inventory 60 $1,500 $ 90,000

8 Purchase 120 1,800 216,000

11 Sale 80 5,000 400,000

30 Sale 50 5,000 250,000

April 8 Purchase 100 2,000 200,000

10 Sale 60 5,000 300,000

19 Sale 30 5,000 150,000

28 Purchase 100 2,200 220,000

May 5 Sale 60 5,250 315,000

16 Sale 80 5,250 420,000

21 Purchase 180 2,400 432,000

28 Sale 90 5,250 472,500

intermediate accounting questions pt1 445511

Aug 29, 2021 | Uncategorized

1. A sale on account would be recorded by:

debiting revenue.
crediting assets.
crediting liabilities.
debiting assets.

2. The adjusting entry required to record accrued expenses includes:

a credit to cash.
a debit to an asset.
a credit to an asset.
a credit to liability

3.Permanent accounts would not include:

cost of goods sold.
inventory.
current liabilities.
accumulated depreciation.

4. Notes payable:

is a current liability account.
usually has a debit balance.
is a non current liability account.
cannot determine its classification without additional information.

5. Which of the following is not a financing ratio?

Time interest earned ratio.
The debt to equity ratio.
The current ratio.
All of the above are financing ratios.

cvp 445512

Aug 29, 2021 | Uncategorized

1.If sales volume increases, and all other factors remain unchanged, the contribution margin ratio will decrease?

True / False

2. An increase in the number of units sold will decrease a company’s break even point

True / False

3. The contribution margin ratio always increases when the:

A) break even point increases

B) break even point decreases

C) Variable expenses as a percentage of net sales decrease

D) Variable expense as a percentage of net sales increase.

4. A variable cost is a cost that:

A) varies per unit at every level of activity

B) occurs at various times during the year

C) varies in total in proportion to changes in the level of activity

D) may or may not be incurred, depending on management’s discretion

help 445515

Aug 29, 2021 | Uncategorized

1. Tonya had the following items for last year:

Salary	$40,000
Short term capital gain	$12,000
Nonbusiness bad debt	($10,000)
Long term capital loss	($8,000)

For the current year, Tonya had the following items:

Salary	$45,000
Collection of last year%u2019s bad debt	$12,000

Determine Tonya’s adjusted gross income for the current year.

2. Misty owns stock in Violet, Inc., for which her adjusted basis is $75,000. She receives a cash distribution of $52,000 from Violet.
a. What is Misty’s adjusted basis for the stock if the distribution is a taxable dividend?
b. What is Misty’s adjusted basis for the stock if the distribution is a return of capital?

3. Rachel lives and works in Chicago. She is the regional sales manager for a national fast food chain. Due to unusual developments, she is compelled to work six straight weeks in the St. Louis area. Instead of spending the weekend there, she flies home every Friday night and returns early Monday morning. The cost of coming home for the weekend approximates $500. Had she stayed in St. Louis, deductible meals and lodging would have been $600. How much, if any, may Rachel deduct as to each weekend?

intermediate acounnting 445521

Aug 29, 2021 | Uncategorized

1. Chase Construction Company (CCC) entered into a contractto build a parking complex. The project will commence on January 1, 2014. The complex willcost approximately $600,000 and will take 3 years to complete construction. CCC will bill its client $900,000 for the construction.

The following information contain data for the construction

Description201420152016

Costs to date$270,000$450,000$610,000
Estimated costs to complete330,000150,0000
Progress billings to date270,000550,000900,000
Cash collected to date240,000500,000900,000

Required

a. Using the percentage of completion method, compute the estimated gross profit that would be recognized during each year (2014, 2015, and 2016) of the construction.

b. Prepare all necessary journal entries for each year of the construction.

2. Schneider Companyuses installment sales method. Below is a summary of its sales, cost of goods sold, and gross profit for three years.

Description201320142015

Installment sales$250,000$260,000$280,000
Cost of goods sold155,000163,800182,000
Gross profit95,00096,20098,000

need help 445524

Aug 29, 2021 | Uncategorized

10.

On March 25, 2014, Patton Company sold merchandise on account,$10,000. The applicable sales tax percentage is 8.5%. Record the transaction.

Journal
Date	Description	Post Ref	Debit	Credit

11.

On March 29th, customers who owe $10,500.00 for purchases made on Sonic Sales Company submit payments of $4,250.00. Journalize this event.

texas 445526

Aug 29, 2021 | Uncategorized

10. Texas Communications, Corp., reported the following figures in its financial

statements (amounts in thousands):

cash $3,600 cost of goods sold $21,000

total operating expenses 3,300 equipment, net 3,900

accounts payable 4,000 accrued liabilities 1,800

total stockholder equity 4,100 net sales revenue 29,000

long term notes payable 600 accounts receivable 2,600

inventory 400

Requirement

R1. Prepare the business’s multi step income statement for the year ended May 31, 2011.

11. Review the data in problem #10.

requirement

R1 prepare texas communications classified balance sheet at may 31, 2011. use the report format.

12. refer to the Texas communications data in problems #10 and #11

requirement

R1 calculate the gross profit percentage and rate of inventory turnover for 2011. one year earlier, at May 31, 2010, Texas’ inventory balance was $325.

multiple choice questions 2 445531

Aug 29, 2021 | Uncategorized

11. (TCO 6) Cleaners, Inc. is considering purchasing equipment costing $30,000 with a six year useful life. The equipment will provide cost savings of $7,300 and will be depreciated straight line over its useful life with no salvage value. Cleaners requires a 10% rate of return. What is the approximate net present value of this investment? (Points : 5)

$13,800

$1,794

$886

$2,748

12. (TCO 7) Which of the following would not appear as a fixed expense on a selling and administrative expense budget? (Points : 5)

Freight out

Office salaries

Property taxes

Depreciation

13. (TCO 7) If the required materials to be purchased are 18,000 pounds, the production needs are three times the direct materials purchases, and the beginning direct materials are three and a half times the direct materials purchases, what are the desired ending direct materials in pounds? (Points : 5)

45,000

9,000

27,000

18,000

14. (TCO 8) Standards that are based on efficient activity with allowances for unavoidable losses are called _______ (Points : 5)

basic standards.

maximum efficiency standards.

currently attainable standards.

expected standards.

15. (TCO 9) A static budget _____________. (Points : 5)

should not be prepared in a company

is useful in evaluating a manager’s performance by comparing actual variable costs and planned variable costs

shows planned results at the original budgeted activity level

is changed only if the actual level of activity is different than originally budgeted

16. (TCO 9) If costs are not responsive to changes in activity level, how are they best described? (Points : 5)

Mixed

Flexible

Variable

Fixed

17. (TCO 9) Using the high low method, what is the fixed cost for the following information?

Month

Miles

Total Cost

January

80,000

$96,000

February

50,000

$80,000

March

70,000

$94,000

April

90,000

$130,000

(Points : 5)

$17,500

$36,000

$14,000

$50,000

18. (TCO 10) Which of the following statements regarding budget reports is incorrect? (Points : 5)

The cost of budget reports should not outweigh the benefits.

Budget reports are used for planning, control, and information.

Reports prepared for upper management typically have fewer details than reports prepared for lower level managers.

Reports are prepared more frequently for upper management than for lower level managers.

inventory turnover 445533

Aug 29, 2021 | Uncategorized

12/31/10 amount 12/31/11 amount

Cost of Merchandise sold 172,900 160,600

Inventory 18,000 12,000

Based on the information above, compute (a) Inventory turnover; (b) Average daily cost of merchandise sold; and (c) Number of days’ sales in inventory for 2011. Use a 365 day year

If required, round your answers to two decimal places.

a. Inventory turnover
b. Average daily cost of merchandise sold
c. Number of days’ sales in inventory

d. If an inventory turnover of 12 is average for the industry, how is this company doing?

acc 305 help needed pt3 445534

Aug 29, 2021 | Uncategorized

#12

A company with monthly revenue of $142,000, variable costs of $55,500, and fixed costs of $42,200 has a contribution margin of:

	$86,500.
	$99,800.
	$142,000.
	$43,250.

#13

A company with monthly fixed costs of $300,000 expects to earn monthly operating income of $64,000 by selling 13,000 units per month. What is the company’s expected unit contribution margin?

	$28.
	$23.
	$5.
	The information given is insufficient to determine unit contribution margin.

#14

If monthly fixed costs are $21,000 and the contribution margin ratio is 50%, the monthly sales volume required to break even is:

	$10,500.
	$42,000.
	$52,500.
	$31,500.

#15

Product X sells for $30 per unit and has related variable costs of $15 per unit. The fixed costs of producing product X are $64,000 per month. How many units of product X must be sold each month to earn a monthly operating income of $56,000?

3,733.

2,133.

4,267.

8,000.

#16 17

The following data are available for product no. CK74, manufactured and sold by Ruby Corporation:

Maximum capacity with present facilities	12,500 units
Total fixed cost (per period)	$ 852,800
Variable cost per unit	$ 121.00
Sales price per unit	$ 203.00

16.

The contribution margin per unit for product no. CK74 is:

	$82.00.
	$62.00.
	$162.00.
	$103.00.

help 445539

Aug 29, 2021 | Uncategorized

13.

Prepare (a) a single step income statement, (b) a statement of owner’s equity, and (c) a balance sheet in report form from the following data for Kooper Co., taken from the ledger after adjustment on December 31, 2010 the end of the fiscal year.

Accounts Payable	$ 97,200
Accounts Receivable	64,300
Accumulated Depreciation Office Equipment	72,750
Accumulated Depreciation Store Equipment	162,100
Administrative Expenses	56,500
Maeve Kooper, Capital	81,750
Cash	53,000
Cost of Merchandise Sold	121,700
Maeve Kooper, Drawing	52,000
Interest Expense	12,000
Merchandise Inventory	93,250
Note Payable, Due 2012	154,000
Office Equipment	149,750
Prepaid Insurance	6,500
Rent Revenue	17,500
Salaries Payable	28,700
Sales (net)	365,500
Selling Expenses	41,500
Store Equipment	325,000
Supplies	4,000

prepare trial balances as you deem necessary 445139

Aug 29, 2021 | Uncategorized

Prepare journal entries to record each of the following transactions. You do not needto write explanations below the journal entries.

Create general ledger accounts for each account and post each of the journal entries to an existing general ledger account.

Prepare adjusting journal entries as you deem necessary. Besides the information provided for adjusting journal entries, review the transactions and review your unadjusted trial balance for any other adjusting journal entries you may need to prepare.

Post each of the adjusting journal entries to the general ledger accounts.

Prepare closing entries and post the entries to the general ledger accounts.

Prepare trial balances as you deem necessary.

ACCT 601
Fall Semester, 2013
Final Exam
Name____________________________

Prepare journal entries to record each of the following transactions. You do not need to write explanations below the journal entries.

Create general ledger accounts for each account and post each of the journal entries to an existing general ledger account.

Prepare adjusting journal entries as you deem necessary. Besides the information provided for adjusting journal entries, review the transactions and review your unadjusted trial balance for any other adjusting journal entries you may need to prepare.

Post each of the adjusting journal entries to the general ledger accounts.

Prepare closing entries and post the entries to the general ledger accounts.

Prepare trial balances as you deem necessary.

Prepare the following financial statements, in their proper format, for the month of January
- Income statement
- Statement of retained earnings
- Balance sheet
- Statement of Cash Flow

Shocker Electronics is a new company that distributes computer equipment to retail outlets. The following information pertains to Shocker Electronics during their first month of operations:

Suppliers
sales
price cost terms

Xtreme game systems $ 3,000.00 2,400.00 1% 15, net 30

HP office systems 2,000.00 1,700.00 1%/20, net/30

Gateway home systems 900.00 720.00 2%/10, net/30

Customers

Cuesta Computer terms 2%/10 net 30

Mustang Computer terms 2%/10 net 30

SLO CPU terms 2%/10 net 30

walk in customers cash only no discount

Jan 1 Issued 10,000 shares of $1 par value common stock for $15 per share.

Jan 1 Made a $50,000 down payment and signed a $600,000 mortgage to purchase land and building, which will be used as the distribution center. The land comprised of three (3) lots which appraised at $132,000 each ($396,000 total) and the building appraised for $264,000. The building occupies one (1) lot, one (1) lot will serve as parking and WCD intends to sell the third lot.

The loan is a ten (10) year, 8.0% mortgage requiring monthly payments consisting of principle and interest. The first payment is due Feb. 1
^st.
Please attach a loan amortization schedule.

Jan 1 Issued 100 bonds with $1,000 face value and 6% coupon rate. The bonds mature in ten (10) years and pay interest semi annually on July 1
^st and January 1st. The bonds sell at a price to yield an 8% effective interest rate. The effective interest method will be used to amortize the bond premium or discount.
Please attach a bond amortization schedule.

Jan 1 Borrowed $100,000 from First Bank to purchase shelving for the warehouse. The shelving cost $100,000 and is expected to last five (5) years. The note is a three (3) year, 9% note that requires principle and interest payments on the last day of each month.
Please attach a loan amortization schedule

Jan 1 Purchase inventory

150 systems from Gateway at $720 per system terms 2%/10, net/30

100 systems from HP at $1,700 per system terms 1%/20, net/30

40 systems from Xtreme at $2,400 per system terms 1% 15, net 30

Jan 1 Paid $1,000 for supplies.

Jan 5 Sold Cuesta Computer sixty (60) Gateway sytstems and forty (40) HP

systems, on account.

Jan 6 Paid Gateway bill in full (in the discount period)

Jan 10 Sold SLO CPU twenty five (25) Xtreme systems.

Jan 14 Received payment in full from Cuesta Computer (in the discount period).

Jan 14 Sold Mustang Computer fifty (50) Gateway sytstems and fifty (50) HP systems.

Jan 14 Paid HP bill in full (in the discount period)

Jan 15 Purchase inventory

75 systems from Gateway at $720 per system terms 2%/10, net/30

50 systems from HP at $1,700 per system terms 1%/20, net/30

25 systems from Xtreme at $2,400 per system terms 1%/15, net 30

Jan 16 Paid salaries totaling $5,000 for the first half of the month. In order to make this entry you must know that 15% was withheld for federal income tax, 5% was withheld for state income tax, 7.65% (6.2% social security and 1.45% medicare) was withheld for FICA. Don’t forget that the employer is also responsible for matching the employee’s contribution to FICA. All taxes, both the employee’s and employer’s, are paid quarterly throughout the year.

Jan 20 Sold Cuesta Computer forty (40) Gateway systems and forty (40) HP systems, on account.

Jan 22 Sold SLO CPU twenty five (25) Xtreme systems.

Jan 23 Received payment in full from Mustang Computers (in discount period).

Jan 24 Paid Gateway bill in full (in the discount period)

Jan 25 Received payment in full from SLO CPU. The first invoice was out of discount period and the second invoice was in the discount period.

Jan 27 Sold the extra parcel of land, which was held as an investment, for $125,000.

Jan 28 Paid Xtreme bill in full (first invoice out of the discount period)

Paid Xtreme bill in full (second invoice in the discount period)

Jan 29 Paid HP bill in full (in the discount period)

Jan 29 Received payment in full from Cuesta Computer (in the discount period).

Jan 30 Sold Mustang Computer fifty (50) Gateway systems and ten (10) HP systems.

Additional information

Accounts Receivable: Accounts receivable are evaluated at the end of each month. It is estimated that 2% of all accounts receivable will not be collected.

Inventory: The weighted average cost method is used to value product purchased from each supplier. Therefore, you will have to calculate inventory values and cost of goods sold by supplier. A periodic inventory system is utilized.

Depreciation on: building 20 years, straight line, no salvage value.

shelving 5 years, double declining balance, no

salvage value

Supplies worth $175 are on hand at the end of the month

Accrue salaries for the second half of the month (same amount as Jan. 16
^th salaries). These salaries will be paid on February 1
^st.

Attachments:

FinalFall2013….doc

leverage of options how can financial institutions with stock portfolios use stock o 445159

Aug 29, 2021 | Uncategorized

1. Leverage of Options How can financial institutions with stock portfolios use stock options when they expect stock prices to rise substantially but do not yet have sufficient funds to purchase more stock?

2. Hedging with Put Options Why would a financial institution holding the stock of Hinton Co. consider buying a put option on that stock rather than simply selling it?

3. Call Options on Futures Describe a call option on interest rate futures. How does it differ from purchasing a futures contract?

4. Put Options on Futures Describe a put option on interest rate futures. How does it differ from selling a futures contract?

5. Hedging Interest Rate Risk Assume a savings institution has a large amount of fixed rate mortgages and obtains most of its funds from short term deposits. How could it use options on financial futures to hedge its exposure to interest rate movements? Would futures or options on futures be more appropriate if the institution is concerned that interest rates will decline, causing a large number of mortgage prepayments?

6. Speculating with Stock Options The price of Garner stock is $40. There is a call option on Garner stock that is at the money with a premium of $2.00. There is a put option on Garner stock that is at the money with a premium of $1.80. Why would investors consider writing this call option and this put option? Why would some investors consider buying this call option and this put option?

suppose you have been hired as a financial consultant to defense electronics inc 445160

Aug 29, 2021 | Uncategorized

Suppose you have been hired as a financial consultant to Defense Electronics, Inc. (DEI), a large, publicly traded firm that is the market share leader in radar detection systems (RDSs). The company is looking at setting up a manufacturing plant overseas to produce a new line of RDSs. This will be a five year project. The company bought some land three years ago for $4.5 million in anticipation of using it as a toxic dump site for waste chemicals, but it built a piping system to safely discard the chemicals instead. The land was appraised last week for $5.3 million. In five years, the aftertax value of the land will be $5.7 million, but the company expects to keep the land for a future project. The company wants to build its new manufacturing plant on this land; the plant and equipment will cost $32 million to build. The following market data on DEI’s securities are current:

accrue salaries for the second half of the month same amount as jan 16th salaries 445191

Aug 29, 2021 | Uncategorized

Name____________________________

Prepare journal entries to record each of the following transactions. You do not need to write explanations below the journal entries.

Create general ledger accounts for each account and post each of the journal entries to an existing general ledger account.

Prepare adjusting journal entries as you deem necessary. Besides the information provided for adjusting journal entries, review the transactions and review your unadjusted trial balance for any other adjusting journal entries you may need to prepare.

Post each of the adjusting journal entries to the general ledger accounts.

Prepare closing entries and post the entries to the general ledger accounts.

Prepare trial balances as you deem necessary.

Prepare the following financial statements, in their proper format, for the month of January
- Income statement
- Statement of retained earnings
- Balance sheet
- Statement of Cash Flow

Shocker Electronics is a new company that distributes computer equipment to retail outlets. The following information pertains to Shocker Electronics during their first month of operations:

Suppliers
sales
price cost terms

Xtreme game systems $ 3,000.00 2,400.00 1% 15, net 30

HP office systems 2,000.00 1,700.00 1%/20, net/30

Gateway home systems 900.00 720.00 2%/10, net/30

Customers

Cuesta Computer terms 2%/10 net 30

Mustang Computer terms 2%/10 net 30

SLO CPU terms 2%/10 net 30

walk in customers cash only no discount

Jan 1 Issued 10,000 shares of $1 par value common stock for $15 per share.

Jan 1 Made a $50,000 down payment and signed a $600,000 mortgage to purchase land and building, which will be used as the distribution center. The land comprised of three (3) lots which appraised at $132,000 each ($396,000 total) and the building appraised for $264,000. The building occupies one (1) lot, one (1) lot will serve as parking and WCD intends to sell the third lot.

The loan is a ten (10) year, 8.0% mortgage requiring monthly payments consisting of principle and interest. The first payment is due Feb. 1
^st.
Please attach a loan amortization schedule.

Jan 1 Issued 100 bonds with $1,000 face value and 6% coupon rate. The bonds mature in ten (10) years and pay interest semi annually on July 1
^st and January 1st. The bonds sell at a price to yield an 8% effective interest rate. The effective interest method will be used to amortize the bond premium or discount.
Please attach a bond amortization schedule.

Jan 1 Borrowed $100,000 from First Bank to purchase shelving for the warehouse. The shelving cost $100,000 and is expected to last five (5) years. The note is a three (3) year, 9% note that requires principle and interest payments on the last day of each month.
Please attach a loan amortization schedule

Jan 1 Purchase inventory

150 systems from Gateway at $720 per system terms 2%/10, net/30

100 systems from HP at $1,700 per system terms 1%/20, net/30

40 systems from Xtreme at $2,400 per system terms 1% 15, net 30

Jan 1 Paid $1,000 for supplies.

Jan 5 Sold Cuesta Computer sixty (60) Gateway sytstems and forty (40) HP

systems, on account.

Jan 6 Paid Gateway bill in full (in the discount period)

Jan 10 Sold SLO CPU twenty five (25) Xtreme systems.

Jan 14 Received payment in full from Cuesta Computer (in the discount period).

Jan 14 Sold Mustang Computer fifty (50) Gateway sytstems and fifty (50) HP systems.

Jan 14 Paid HP bill in full (in the discount period)

Jan 15 Purchase inventory

75 systems from Gateway at $720 per system terms 2%/10, net/30

50 systems from HP at $1,700 per system terms 1%/20, net/30

25 systems from Xtreme at $2,400 per system terms 1%/15, net 30

Jan 16 Paid salaries totaling $5,000 for the first half of the month. In order to make this entry you must know that 15% was withheld for federal income tax, 5% was withheld for state income tax, 7.65% (6.2% social security and 1.45% medicare) was withheld for FICA. Don’t forget that the employer is also responsible for matching the employee’s contribution to FICA. All taxes, both the employee’s and employer’s, are paid quarterly throughout the year.

Jan 20 Sold Cuesta Computer forty (40) Gateway systems and forty (40) HP systems, on account.

Jan 22 Sold SLO CPU twenty five (25) Xtreme systems.

Jan 23 Received payment in full from Mustang Computers (in discount period).

Jan 24 Paid Gateway bill in full (in the discount period)

Jan 25 Received payment in full from SLO CPU. The first invoice was out of discount period and the second invoice was in the discount period.

Jan 27 Sold the extra parcel of land, which was held as an investment, for $125,000.

Jan 28 Paid Xtreme bill in full (first invoice out of the discount period)

Paid Xtreme bill in full (second invoice in the discount period)

Jan 29 Paid HP bill in full (in the discount period)

Jan 29 Received payment in full from Cuesta Computer (in the discount period).

Jan 30 Sold Mustang Computer fifty (50) Gateway systems and ten (10) HP systems.

Additional information

Accounts Receivable: Accounts receivable are evaluated at the end of each month. It is estimated that 2% of all accounts receivable will not be collected.

Inventory: The weighted average cost method is used to value product purchased from each supplier. Therefore, you will have to calculate inventory values and cost of goods sold by supplier. A periodic inventory system is utilized.

Depreciation on: building 20 years, straight line, no salvage value.

shelving 5 years, double declining balance, no

salvage value

Supplies worth $175 are on hand at the end of the month

Accrue salaries for the second half of the month (same amount as Jan. 16
^th salaries). These salaries will be paid on February 1
^st.

Attachments:

Comprehensive….doc

part 4 governmental and not for profit accounting 445205

Aug 29, 2021 | Uncategorized

824

Required • • • •

Part 4 GOVERNMENTAL AND NOT FOR PROFIT ACCOUNTING

Problem 15 11 (LO 5, 7, 9, 10) Journal entries, schedule of capital assets. The fol lowing schedule of capital assets was obtained from the records of the city of Elmcreek: City of Elmcreek Schedule of General Fixed Assets December 31, 2018

Governmental activities: Land $1,000,000 Buildings 2,150,000 Machinery and equipment 800,000 Construction in progress 250,000 Infrastructure assets 1,400,000 Total general fixed assets $5,600,000 Less accumulated depreciation: Buildings $ 400,000 Construction in progress 0 Machinery and equipment 300,000 Infrastructure 500,000 Total investment in governmental capital assets $4,400,000

A summary of fixed asset transactions for 2019 follows: a. Construction on the new school, a capital project started during 2018, was completed at total cost of $850,000, which was financed by a serial bond issue. No other construction. vas in progress at the beginning of 2019. b. A citizen donated 400 acres of land to the city to be used as a park. The land had a fair value of $ 140,000 when donated. c. The municipal waterworks constructed a new pumping plant at a cost of $120,000. The plant was financed from the water utility revenues. The water utility is accounted for in proprietary fund. The fire department traded in an old fire engine and $105,000 cash for a new model. The old equipment had originally cost $65,000, and $15,000 was allowed on the trade in. e. The city hall was refurbished at a cost of $40,000, which was paid from general fund reve nues. The refurbishing constituted a capital improvement. f. Road use taxes of $30,000 were collected by a special revenue fund, of which $20,000 has been used for improvements other than buildings. g. Depreciation of $100,000 on buildings, $50,000 on machinery and equipment and $25,000 on infrastructure were recorded.

1. Prepare journal entries only for those transactions that are to be accounted for in the general fixed assets account group. Use the city’s account titles. 2. Prepare a schedule of capital assets as of December 31, 2019.

Problem 15 12 (LO 5, 7, 9, 10) Journal entries, schedule of long term debt. The city of Clinton was incorporated on January 1, 2014. On December 31, 2019, a careful study of the city’s records revealed the following information regarding long term debt: a. General obligation bonds in the amount of $1,500,000 were authorized and issued at 1.10= value on July 1, 2014, to finance the construction of a school. The 6% bonds pay intent semiannually on January 1 and July 1, and they mature 10 years from the issuance date. b. Serial bonds of $1,000,000 were sold at 99 on January 1, 2016, to help finance a new hall and cultural center. An additional $750,000 was received from an anonymous bene factor. The 5% serial bonds were to be redeemed in annual amounts of $100,000, be.gln ning on January 1, 2019. A sinking fund was established on January 2, 2016, to pravid’ for the retirement of the serial bonds. Deposits of $70,000 were to be made on Januar:,

.

Attachments:

15 12and 16.xlsx

problem15.pdf

use the following information to complete vivian sweet s 2012 federal tax return 445224

Aug 29, 2021 | Uncategorized

1. Use the following information to complete Vivian Sweet’s 2012 federal tax return. If information is missing, use reasonable assumptions to fill in the gaps.

2. You will need the following forms and schedules to complete the project: Form 1040, Schedule A, Schedule B, Schedule C, Schedule D, Schedule E, Schedule SE, Form 2106, Form 4562, Form 4684, Form 8283, and Form 8949. The forms, schedules, and instructions can be found at the IRS Web site (www.irs.gov). The instructions can be helpful in completing the forms.

3. The tax return may be completed individually, or you may work in a group (no more than three people per group). Groups should turn in only one return.

4. Tax returns received after the due date Jerry be penalized 5% each day.

5. You must complete the tax return by hand using federal tax forms. You must use a pencil when completing the tax forms (no ink or computer generated return).

6. Print your name(s) in the top right hand corner of Form 1040 before turning in the solution. You may leave the “Sign Here” and “Paid Preparer’s Use Only” sections blank.

7. When filling out the forms and schedules, leave the “cents” columns blank; round all amounts to the nearest dollar. Also, do not insert zeros on lines for which there are no entries (unless the instructions specifically direct you to insert a zero); you should merely leave the lines blank. When assembling your return, pay attention to the “attachment sequence” number in the right hand corner of each form; that is, you should assemble your completed return based on the attachment sequence numbers.

8. Please submit your project in an envelope (9” x 12” or larger). No folders.

Document Preview:

Tax 315 Tax Return Project FALL 2013 Required: 1. Use the following information to complete Vivian Sweet’s 2012 federal tax return. If information is missing, use reasonable assumptions to fill in the gaps. 2. You will need the following forms and schedules to complete the project: Form 1040, Schedule A, Schedule B, Schedule C, Schedule D, Schedule E, Schedule SE, Form 2106, Form 4562, Form 4684, Form 8283, and Form 8949. The forms, schedules, and instructions can be found at the IRS Web site (www.irs.gov). The instructions can be helpful in completing the forms. 3. The tax return may be completed individually, or you may work in a group (no more than three people per group). Groups should turn in only one return. 4. Tax returns received after the due date Jerry be penalized 5% each day. 5. You must complete the tax return by hand using federal tax forms. You must use a pencil when completing the tax forms (no ink or computer generated return). 6. Print your name(s) in the top right hand corner of Form 1040 before turning in the solution. You may leave the “Sign Here” and “Paid Preparer’s Use Only” sections blank. 7. When filling out the forms and schedules, leave the “cents” columns blank; round all amounts to the nearest dollar. Also, do not insert zeros on lines for which there are no entries (unless the instructions specifically direct you to insert a zero); you should merely leave the lines blank. When assembling your return, pay attention to the “attachment sequence” number in the right hand corner of each form; that is, you should assemble your completed return based on the attachment sequence numbers. 8. Please submit your project in an envelope (9” x 12” or larger). No folders. Taxpayer Information 1. Vivian Sweet is single and has two children from her previous marriage. Linda lives with Vivian, and Vivian provides more than half of her support. Patrick lives with his father, Jerry (Patrick lived with Jerry for…

Attachments:

Tax Return Pr….docx

Tax Research ….doc

journal entries 445283

Aug 29, 2021 | Uncategorized

On July 1, 2006 Sweetman Co signed acontract to leasespace in a building for 15 years. The lease contract calls for annual (prepaid) renatl payments of $70,000 on each July 1 throughout the life of the lease and for the leasee to pay for all additions and improvements to the leased property. On June 25, 2011, Sweetman decides to sublease the space to Kirk & Associates for the remaining 10 years of the lease Kirk pays $185,000 to Sweetman for the right to sublease and it agrees to assume the obligations to pay the $70,000 annual rent to the building owner beginning July 1, 2011. After taking possession of the leased soace Kirk pays for improving the office portion of the leased space at a $129,840 cost. The improvement are paid for by Kirk on July 5, 2011, and are estimated to have a useful life equal to the 16 year remaining in the life of the building.

1). Prepare entries for Kirk to record (a) itspaymentfor the right to sublease thebuildingspace, (b) its payment of the 2011 annual rent to the building owner, and (c) its payment for the office improvements.

2). Prepare Kirk’s year endadjusting entriesrequired at December 31,2011, to (a) amortize the $185,000 cost fo the sublease, (b) amortize the office improvements, and (c) record rent expense.

Accounting

a o corp provided the following information for march 2012 from its perpetual invent 445329

Aug 29, 2021 | Uncategorized

Show computations for each of the following, and clearly show your final answer using the answer sheet provided.

The following information is available from the inventory records of A&O Corporation for January 2012:

Purchases		Sales
Balance on 1/1/2012	2,000 @ 9.04	Sales on 1/27/2012	1,800 @11.90
Purchases 0n 1/26/2012	1,500 @10.51

Assume that A&O maintains perpetual inventory records. Calculate the ending inventory at 1/31/2012 using the moving average inventory method (round numbers to two decimals).

The following information is available from the inventory records of VAP Corporation for January 2012:

Purchases		Sales
Balance on 1/1/2012	300 @ $10.00	Sales on 1/10/2012	200 @$24..00
Purchases 0n 1/11/2012	800 @$11.00	Sales on 1/15/2012	500 @$25..00
Purchased on 1/20/2012	500 @$13.00	Sales on 1/27/2012	250 @$27..00

Assume that VAP maintains periodic inventory records. Calculate the cost of goods sold under the LIFO method.

The following information is available for PVP Company for July 2012:

	Cost	Retail
7/1/2012 inventory	$10,440	$14,500
Purchases during July 2012	31,000	42,000
Net markups, $1,800; net markdowns, $1,000; sales during July 2012, $40,300

Calculate the cost of estimated inventory at 7/31/2012 on a LIFO basis.

A&O Corp. provided the following information for March 2012, from its perpetual inventory system:

March 1 balance500 units @ $25	March 18 sales300 units@ $35
March 28 purchases400 units @ $30

Assuming the LIFO perpetual method, calculate A&O’s March 2012 ending inventory.

A&O Corp. wishes to accumulate $900,000 for purchasing land five years from 1/1/2012. Assume that A&O will earn an annual return of 8% compounded semiannually during the 5 year period. A&O plans to make a deposit every six months starting on 6/30/2012for a total of 10 deposits. Calculate the amount A&O should deposit every 6 months to accumulate $900,000 at the end of 5 years. Use the appropriate factors given below:

Future value of an ordinary annuity at 8%, for 5 periods=5.86660	Future value of an ordinary annuity at 8%, for10 periods=14.48656
Future value of an ordinary annuity at 4%, for 5 periods=5.41632	Future value of an ordinary annuity at 4%, for 10 periods=12.00611
Present value of an ordinary annuity at 4%, for 5 periods=4.45182	Present value of an ordinary annuity at 4%, for 10 periods=8.11090

VAP Company adopted the dollar value LIFO method on 12/31/2011. Its inventory on that date was $277,000 and the price index was 100. Information for the subsequent year is as follows:

	Inventory at current prices	Price index
12/31/2012	448,630	119

Calculate the cost of ending inventory at 12/31/2012 under dollar value LIFO.

AVP Company had a balance of $3,500 in the prepaid insurance account at 1/1/2012 and the balance was $2,200 at 12/31/2012. During 2012, AVP recorded insurance expense of $10,000 in its income statement. PVP also paid cash to purchase additional prepaid insurance in 2012. Assuming all necessary journal entries were made, show calculations for the amount of insurance purchased in 2012.

On 1/1/2012 A&O Corporation signed a long term non cancellable purchase commitment with VAP Company to purchase product X for $900,000. As of 12/31/2012 the price of product X had declined to $700,000. On 1/1/2013 A&O received delivery of product X paying $900,000. Prepare the journal entries as appropriate on 1/1/2012, 12/31/2012, and 1/1/2013.

Attachments:

ACCT 310.docx

complete the monthly cash budgets for the second quarter of 2010 445365

Aug 29, 2021 | Uncategorized

Please proceed to the “Analysis” worksheet and complete the basic problem requirements. Complete the problem requirements by entering appropriate amounts or formulas in shaded worksheet cells: a. Complete the monthly cash budgets for the second quarter of 2010 using the format shown on the “Analysis” worksheet. Note that the ending cash balance for June is provided as a check figure.

Document Preview:

Complete the Modeling: Step 1: Analysis of cash receipts from sales: From Budgeted Income Statement April May June Total Sales: $ 224,000 $ 272,000 $ 304,000 % cash transactions: 40% 40% 40% Total Cash Sales: $ 89,600 $ 108,800 $ 121,600 March April May June Total Credit Sales: $ 258,462 $ 134,400 $ 163,200 $ 182,400 Credit Sales % Collected April May June February sales in accounts receivable: $ 204,800 $ 71,680 March sales: 65% 168,000 March sales: 35% 90,462 April sales: 65% 87,360 April sales: 35% 47,040 May sales: $ 163,200 65% 106,080 Total cash collections form credit sales: $ 239,680 $ 177,822 $ 153,120 Step 2: Analysis of cash payments for cost of goods sold and operating expenses: Cash Purchases From Budgeted Income Statement April May June Cost of goods sold: $ 153,600 $ 182,400 $ 201,600 Operating expenses: 35,200 40,000 43,200 Total cost of goods sold and operating expenses: $ 188,800 $ 222,400 $ 244,800 Less items not paid in current month: 50,880 54,240 56,480 Cash paid for cost of goods sold and operating expenses: $ 239,680 $ 276,640 $ 301,280 Cash Cash Payments Purchases % Paid April May June April 1, 2010 current liabilities: $ 112,160 $ 112,160 April cash purchases: $ 239,680 90% 215,712 April cash purchases: $ 239,680 10% 23,968 May cash purchases: $ 276,640 90% 248,976 May cash purchases: $ 276,640 10% 27,664 June cash purchases: $ 301,280 90% 271,152 Total cash payments: $ 327,872 $ 272,944 $ 298,816 a. Cash Budget MARINE TECH, INC. Cash Budget For the months of April, May, and June, 2010 April May June Beginning Cash Balance $ 22,400 $ 82,710 $ 24,388 Cash Receipts: From cash sales made in current month 89,600 108,800 121,600 From credit sales made in: February (from analysis in Step 1 above) 71,680 March (from analysis in Step 1 above) 168,000 90,462 April (from analysis in Step 1 above) 87,360 47,040 May (from analysis in Step 1 above) 106,080 Total Cash Available $ 351,680 $ 369,332 $ 299,108 Cash Disbursements: For cost of goods…

Attachments:

Help.pdf

cost 445366

Aug 29, 2021 | Uncategorized

Brighton, Inc. manufactures kitchen tiles. The company recently expanded, and the controller believes that it will need to borrow cash to continue operations. In considering the loan, the bank requested a projected income statement and cash budget for Q2 (April, May and June).

The following information is available:

§The company budgeted sales at 600,000 units per month in April, June, and July and at 450,000 units in May and August. The company sold 500,000 units in March. The selling price is $4 per unit.

§The beginning Cash balance at 4/1 is $400,000.

§Accounts Receivable balance at 3/31 is $100,000. 75% of this balance will be collected in April and 25% of the balance will be collected in May.

§All sales are credit sales. Collections from customers are projected as follows:

§50% of current month sales are collected

§25% of current month sales are collected in the following month.

§24% of current month sales are collected in the second month following the month of sale.

§1% of sales are never collected.

§The inventory of finished goods on April 1 was 120,000 units. The finished goods inventory at the end of each month equals 20 percent of sales anticipated for the following month. There is no work in process.

§The inventory of raw materials on April 1 was 57,000 pounds. At the end of each month, the raw materials inventory must equal 40 percent of production requirements for the following month.

§Purchases made in the current month are paid for in the following month. The company purchased 100,000 pounds of material during the month of March.

§Selling expenses are 10 percent of gross sales. Administrative expenses, which include depreciation of $2,500 per month on office furniture and fixtures, total $165,000 per month.

§The manufacturing budget for tiles, based on normal production of 500,000 units per month, follows:

Using the MS Excel template provided, prepare the projected income statement and cash budget along with the following supporting schedules for the bank:

· Sales Budget

· Production Budget (in units)

· Raw Materials Budget

· Direct Labor Budget

· Manufacturing Overhead budget

· Selling & Administrative Budget

· Projected Cash Collections

· Projected Cash Disbursements

You will also note that there are FOUR questions on the front tab of the Excel Workbook (Income Statement Tab). The questions are highlighted in YELLOW. Please provide a short answer for each of these questions after completing the spreadsheets.

You will submit the COMPLETED MS Excel Workbook to DROPBOX as your case submission.

CHECK FIGURES:

§Total Operating Profit (Income Statement Tab) $552,947

§Ending Cash Balance (Cash Budget Tab) $236,500

§Total Production in Units (Production Budget Tab) 1,650,000

§Total Raw Material Cost (in $) (Raw Materials Budget Tab) $1,650,000

§Total Manufacturing Overhead Cost (Mfg Overhead Tab) $1.860,000

§Total Cash Disbursements (Cash Disbursements Schedule) $5,189,500

problem 1 3a right side of equals sign total 31 548 445403

Aug 29, 2021 | Uncategorized

a. Davis deposited $20,000 in a bank in the name of the business.

b. Bought office equipment on account from Starkey Equipment Company, $4,120.

c. Davis invested her personal photographic equipment , $5,370. ( Increase the account Photo Equipment and increase the account S. Davis, Capital)

d. Paid the rent for the month, $1,500, Ck. No. 1000 (Rent Expense).

e. Bought supplies for cash, $215, Ck. No. 1001.

f. Bought insurance for two years, $1,840, Ck. No. 1002.

g. Sold graphic services for cash, $3,616 (Professional Fees).

h. Paid the salary of part time assistant, $982, Ck. No. 1003 (Salary Expense).

i. Received and paid the bill for telephone service, $134, Ck. No. 1004 (Telephone Expense).

j. Paid cash for minor repairs to graphics equipment, $185, Ck. No. 1005 (Repair Expense).

k. Sold graphic services for cash, $3,693 (Professional Fees).

l. Paid on account to Starkey Equipment Company, $650, Ck. No. 1006.

m. Davis withdrew cash for personal use, $1,800, Ck. No. 1007.

Please help find the formula for this t account

chapter 11 answers only please 445441

Aug 29, 2021 | Uncategorized

1. 11 4 Reporting the Stockholders’ Equity Section of the Balance Sheet [LO2, LO3, LO4]

Shelby Corporation was organized in January 2010 by 10 stockholders to operate an air conditioning sales and service business. The charter issued by the state authorized the following capital stock:

Common stock, $1 par value, 200,000 shares.

Preferred stock, $8 par value, 6 percent, 50,000 shares.

During January and February 2010, the following stock transactions were completed:

a.	Collected $40,000 cash from each of the 10 organizers and issued 2,000 shares of common stock to each of them.
b.	Issued 15,000 shares of preferred stock at $25 per share; collected in cash.

Net income for 2010 was $40,000; cash dividends declared and paid at year end were $10,000.

Required:

Prepare the stockholders’ equity section of the balance sheet at December 31, 2010. (Omit the “$” sign in your response.)

Stockholders’ Equity%u2014December 31, 2010
Contributed capital:
Preferred stock	$
Additional paid in capital, preferred stock
Common stock
Additional paid in capital, common stock

Total contributed capital
Retained earnings

Total stockholders’ equity	$

E11 1 Computing Shares Outstanding [LO1] 2.

The 2008 annual report for Fortune Brands, the seller of Pinnacle golf balls and MasterLock padlocks,disclosed that 750 million shares of common stock have been authorized. At the end of 2007, 235 million shares had been issued and the number of shares in treasury stock was 81 million. During 2008, 1 million common shares were reissued from treasury, and 5 million common shares were purchased for treasury stock.

Required:

(a)

Determine the number of common shares issued at the end of 2008. (Enter your answer in millions.)

Issued stock

(b)

Determine the number of common shares in treasury at the end of 2008. (Enter your answer in millions.)

Treasury stock

(c)

Determine the number of common shares outstanding at the end of 2008. (Enter your answer in millions.)

Shares outstanding

	Standard:	Enhanced:
Estimated production volume	3,000 units	4,000 units
Direct material cost	$25 per unit	$40 per unit
Direct labor per unit	3 hours at $12 per hour	4 hours at $12 per hour

	Orders Processed	Machine Hours Worked	Inspection Hours
Standard	300	18,000	2,000
Enhanced	200	22,000	8,000
Total	500	40,000	10,000

		relative benefits
		ability to bear costs
		feasible outcomes
		equity

		$67,500 $202,500
		$216,000 $54,000
		$202,500 $67,500
		$54,000 $216,000