help 445452

Aug 29, 2021 | Uncategorized

1. At the beginning of 2011, Margarets adjusted basis in her 30 percent interest in MP Partnership, a general partnership, was $3,000. During 2011, Margaret did not make any additional contributions to MP Partnership, and Margarets share of MP Partnership liabilities did not change. During 2011, MP Partnership distributed $5,000 to Margaret, and MP Partnership had the following items of partnership income, deduction, gain and loss for 2011:

Taxable income $15,000

Tax exempt interest $6,000

Section 1231 loss ($10,000)

What is Margarets adjusted basis in her partnership interest in MP Partnership at the end of 2011?

2. Facts for Questions 2 and 3. Mr. Grey died on January 1, 2012. Mr. Grey made no gifts during his life. Under his will, Mr. Grey devised all of his probate assets to his wife. Mr. Grey owned the following assets, probate and nonprobate, at the date of his death:

Asset 1. Home in Mr. Grey’s and Mrs. Grey’s (his surviving spouse) names as tenants by the entireties that was purchased in 2006. The home was had a fair market value of $2,000,000 both at the date of Mr. Grey’s death and six months after the Mr. Grey’s death.

Asset 2. Publicly traded stocks and bonds solely in , Mr. Greys name that had a fair market value of $3,000,000 on the date of Mr. Greys death and a fair market value of $2,000,000 six months after Mr. Grey’s death.

Asset 3. Undeveloped real estate in Mr. Grey’s name and the name of his daughter, Sue Smith, jointly with right of survivorship that Mr. Grey purchased in 2006 for $100,000. The property had a fair market value of $2,500,000 at the date of Mr. Greys death and a fair market value of $1,000,000 six months after the date of Mr. Grey’s death.

Asset 4. A condominium in the decedent’s name alone purchased in 2002 and used as a vacation home that had a fair market value of $500,000 on the date of Mr. Greys death. The condominium was sold by the personal representative of the decedent’s estate for $250,000 four months after Mr. Greys death.

Based on the facts for questions 2 and 3, which of the following options are available to Mr. Greys estate for valuation of the assets includible in the gross estate?

a. The estate may use date of death values or it may elect alternate valuation.

b. The estate must use date of death values.

c. The estate must elect alternate valuation.

d. Valuation is not required as no Federal Estate Tax Return is required to be filed.

3. Facts for Questions 2 and 3. Mr. Grey died on January 1, 2012. Mr. Grey made no gifts during his life. Under his will, Mr. Grey devised all of his probate assets to his wife. Mr. Grey owned the following assets, probate and nonprobate, at the date of his death:

Asset 1. Home in Mr. Grey’s and Mrs. Grey’s (his surviving spouse) names as tenants by the entireties that was purchased in 2006. The home was had a fair market value of $2,000,000 both at the date of Mr. Grey’s death and six months after the Mr. Grey’s death.

Asset 2. Publicly traded stocks and bonds solely in , Mr. Greys name that had a fair market value of $3,000,000 on the date of Mr. Greys death and a fair market value of $2,000,000 six months after Mr. Grey’s death.

Asset 3. Undeveloped real estate in Mr. Grey’s name and the name of his daughter, Sue Smith, jointly with right of survivorship that Mr. Grey purchased in 2006 for $100,000. The property had a fair market value of $2,500,000 at the date of Mr. Greys death and a fair market value of $1,000,000 six months after the date of Mr. Grey’s death.

Asset 4. A condominium in the decedent’s name alone purchased in 2002 and used as a vacation home that had a fair market value of $500,000 on the date of Mr. Greys death. The condominium was sold by the personal representative of the decedent’s estate for $250,000 four months after Mr. Greys death.

Based upon the facts presented in the fact pattern for questions 2 and 3, what is the amount of Mr. Greys gross estate for federal estate tax purposes?

a. 0.

b. $2,500,000.

c. $3,500,000.

d. $4,250,000.

e. $7,000,000.

accounting 2 445457

Aug 29, 2021 | Uncategorized

accounting 202 question 445460

Aug 29, 2021 | Uncategorized

1. A company owns 8% bonds with a par value of $114,000 that pay interest on october 1 and april 1. The bonds were purchased on october 1st. The amount of interest accrued on december 31 (the company’s year end) would be ( do not round your intermediate calculations):

a) 9120

B) 760

c) 4560

D) 2280

E) 1520

2. All of the following statements regarding accounting for noninfluential securities under U.S GAAP and IFRS are True except:

a) Trading securities are accounted for using fair values with unrealized gains and losses reported in other comprehensive income.

b) Held to maturity securities are accounted for using amortized cost.

c) Trading securities are accounted for using fair values with unrealized gains and losses reported in net income.

d) Available for sale securities are accounted for using fair values with unrealized gains and losses reported in other comprehensive income.

e) Both systems examine held to maturity securities for impairment.

tvm appendix c answers only please 445463

Aug 29, 2021 | Uncategorized

1. You are considering an investment opportunity that would give you $20,000 per year at the end of each of the next 5 years. Assuming you desire to earn 9% interest, how much would you have to pay for the investment today? (Round to the nearest dollar.)

2. You are considering buying an investment that pays you $20,000 at the end of every year for 6 years. If you desire a 9% rate of return on your investment, what price would you be willing to pay for this today? (Round to the nearest whole number.)

3. You deposit $1000 at the end of the year for 5 years in an account that is paying 5% interest. How much have you earned in INTEREST at the end of the 5 years? (Round to the nearest whole dollar.)

4. You are building a yacht. It will be done in 5 years. You have 3 choices regarding payment. 1) You can pay for it now and pay $1,200,000; 2) you can pay for it when it is complete and pay $1,543,000; or 3) you can pay for it with end of the year installments of $250,000 per year for 5 years. Assume an interest rate of 7%.

Based upon time value of money considerations, what is the best payment choice for you?

5. You are building a yacht. It will be done in 5 years. You have 3 choices regarding payment. 1) You can pay for it now and pay $1,200,000; 2) you can pay for it when it is complete and pay $1,543,000; or 3) you can pay for it with end of the year installments of $250,000 per year for 5 years. Assume an interest rate of 7%.

In order to consider the value of choice 3, what time value of money variable should you solve for in order to compare it against the other choices?

6. You are building a yacht. It will be done in 5 years. You have 3 choices regarding payment. 1) You can pay for it now and pay $1,200,000; 2) you can pay for it when it is complete and pay $1,543,000; or 3) you can pay for it with end of the year installments of $250,000 per year for 5 years. Assume an interest rate of 7%.

In order to consider the value of choice 1,
what time value of money variable should you solve for in order to compare it against the other choices?

7. You are building a yacht. It will be done in 5 years. You have 3 choices regarding payment. 1) You can pay for it now and pay $1,200,000; 2) you can pay for it when it is complete and pay $1,543,000; or 3) you can pay for it with end of the year installments of $250,000 per year for 5 years. Assume an interest rate of 7%.

In order to consider the value of choice 2,
what time value of money variable should you solve for in order to compare it against the other choices?

8. You want to purchase a boat in 5 years. You will need $15,000 to buy the boat you want. How much do you have to put in your savings account today assuming you can earn 4% interest? (Round to the nearest dollar.)

9. You want to purchase a boat in 5 years. You will need $15,000 to buy the boat you want. How much do you have to save each year assuming you can earn 3% interest? (Round to the nearest dollar.)

10. You give your dad $500 at the end of every year for the next 10 years to save for you. At the end of the 10 years, he gives you $8,000! What rate of interest did your dad pay you? (Round to the nearest whole number.)

11.You have $2000 to put in the stock market today. Assuming you can earn an 8% return, how many years must you wait until you have accumulated $4000? (Round to the nearest whole number.)

12. Your 6 year old daughter Martha inherits $50,000 cash from her grandparents. If you invest the money and receive a 10% return, how much will be available in 12 years when Martha starts college? (Round to the nearest whole number.)

managerial accounting favorable unfavorable 445464

Aug 29, 2021 | Uncategorized

1) The cost formula for its materials and supplies is $1,990 per month plus $8 per vehicle. For the month of November, the company planned for activity of 92 vehicles, but the actual level of activity was 52 vehicles. The actual materials and supplies for the month was $2,440.

The activity variance for materials and supplies in November would be closest to:

Answer options:

320 F or U

286 U or F

2)The cost formula for its materials and supplies is $1,990 per month plus $8 per vehicle. For the month of November, the company planned for activity of 92 vehicles, but the actual level of activity was 52 vehicles. The actual materials and supplies for the month was $2,440.

The materials and supplies in the planning budget for November would be closest to:

The materials and supplies in the flexible budget for November would be closest to:

Answer Options:

2,406

2,726

2,440

4,137

abc and process 445466

Aug 29, 2021 | Uncategorized

1)crawford company has the following equivalent units for july: materials 20,000 and conversion costs 18,000. Production cost data are:

MATERIALS CONVERSION

work in process, july 1 $3,200 $1,500

costs added in july $25,200 $21,000

The unit production costs for july are

M C

A) 1.42 1.25

B) 1.26 1.17

C) 1.42 1.17

D) 1.26 1.25

2) one of hatch company’s activity cost pools is machine setups, with estimated overhead of $300,000. Hatch produces sparklers(400 setups) and lighters(600 setups). How much of the machine setup cost pool should be assigned to sparklers?

A) 120,000

B)150,000

C)300,000

D)180,000

3)sparate work in process accounts are maintained for each production department or manufacturing process in a process cost sysytem

A) True

B)False

4) One similarity of process cost accounting with job order cost accounting is that both determine total manufacturing costs after each job

A) True

B)False

accounting questions 445469

Aug 29, 2021 | Uncategorized

1. What is the difference between inventory and cost of goods sold? Cost of goods sold and sales revenue?

2. Is gross profit an account?

3. Comstock Company counted their inventory at the end of the year and had 220 units. Included in that amount were 20 units Comstock held on consignment from Davidson Inc. Comstock purchased 50 units of inventory on December 27, FOB shipping point. How many units of inventory should Comstock report on its year end balance sheet?

4. Assume Comstock was unable to count its ending inventory because it was destroyed in a fire. Use the gross profit method to estimate the ending inventory. The gross profit rate is 52%.

intermediate accounting questions pt2 445471

Aug 29, 2021 | Uncategorized

1.The distinction between operating and non operating income relates to:

continuity of income.
principal activities of the reporting entity.
consistency of income stream.
reliability of measurements.

2. On June 1, 2013, Romano Inc. changed the estimated useful life of its office equipment from 20 to 12 years. This change would be accounted for:

prospectively.
retrospectively.
as an accounting error.
none of the above.

3. Cash flows from investing activities do not include:

proceeds from issuing bonds.
payment for the purchase of equipment.
proceeds from the sale of marketable securities.
cash outflows from acquiring land.

4. Each of the following would be reported as items of other comprehensive income except:

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.

5. Reporting comprehensive income according to International Financial Reporting Standards can be accomplished by each of the following methods except:

in the statement of shareholders’ equity.
a combined statement of income and comprehensive income.
a separate statement of comprehensive income.
the entity may choose either (b) or (c).

6. The balance sheet reports:

net income at a point in time.
cash flows for a period of time.
assets and equities at a point in time.
assets and liabilities for a period of time.

taxation what is the earliest date on which bob can dispose of the building and qual 444730

Aug 29, 2021 | Uncategorized

Bob is notified by the city public housing authority on May 3, 2012, that his apartment building is going to be condemned as part of an urban renewal project. On June 1, 2012, Carol offers to buy the building from Bob. Bob sells the building to Carol on June 30, 2012. Condemnation occurs on September 1, 2012, and Carol receives the condemnation proceeds from the city. Assume that both Bob and Carol are calendar year taxpayers.

a. What is the earliest date on which Bob can dispose of the building and qualify for § 1033 postponement treatment?

b. Does the sale to Carol qualify as a § 1033 involuntary conversion? Why or why not?

c. What is the latest date on which Carol can acquire qualifying replacement property and qualify for postponement of the realized gain?

d. What type of property will be qualifying replacement property?

taxation roberto has received various gifts over the years he has decided to dispose 444748

Aug 29, 2021 | Uncategorized

Roberto has received various gifts over the years. He has decided to dispose of the following assets he received as gifts:

a. In 1951, he received land worth $32,000. The donor’s adjusted basis was $35,000. Roberto sells the land for $95,000 in 2012.

b. In 1956, he received stock in Gold Company. The donor’s adjusted basis was $19,000. The fair market value on the date of the gift was $34,000. Roberto sells the stock for $40,000 in 2012.

c. In 1962, he received land worth $15,000. The donor’s adjusted basis was $20,000. Roberto sells the land for $9,000 in 2012.

d. In 2003, he received stock worth $30,000. The donor’s adjusted basis was $42,000. Roberto sells the stock for $38,000 in 2012. What is the recognized gain or loss from each of the preceding transactions? Assume for each of the gift transactions that no gift tax was paid.

taxation ira cook is planning to make a charitable contribution to the boy scouts of 444752

Aug 29, 2021 | Uncategorized

Ira Cook is planning to make a charitable contribution to the Boy Scouts of Crystal, Inc. stock worth $20,000. The stock has an adjusted basis of $15,000. A friend has suggested that Ira sell the stock and contribute the $20,000 in proceeds rather than contribute the stock.

a. Should Ira follow the friend’s advice? Why or why not?

b. Assume that the fair market value is only $13,000. In this case, should Ira follow the friend’s advice? Why or why not?

c. Rather than make a charitable contribution to the Boy Scouts, Ira is going to make a gift to Nancy, his niece. Advise Ira regarding (a) and (b).

d. Write a letter to Ira regarding whether in (a) he should sell the stock and contribute the cash or contribute the stock. He has informed you that he purchased the stock six years ago. Ira’s address is 500 Ireland Avenue, DeKalb, IL 60115.

taxation what is tyneka s basis for the 1 000 shares purchased on august 20 2013 444759

Aug 29, 2021 | Uncategorized

Tyneka inherited 1,000 shares of Aqua, Inc. stock from Joe. Joe’s basis was $35,000, and the fair market value on July 1, 2012 (the date of death) was $45,000. The shares were distributed to Tyneka on July 15, 2012. Tyneka sold the stock on July 30, 2013, for $33,000. After giving the matter more thought, she decides that Aqua is a good investment and purchases 1,000 shares for $30,000 on August 20, 2013.

a. What is Tyneka’s basis for the 1,000 shares purchased on August 20, 2013?

b. What would be Tyneka’s basis for the 1,000 Aqua shares inherited from Joe if she had given 1,000 Aqua shares to Joe on March 1, 2012 (assuming that no gift tax was paid)? Her basis at the date of the gift was $35,000, and the fair market value was $45,000.

c. Could Tyneka have obtained different tax consequences in (a) if she had sold the 1,000 shares on December 27, 2012, and purchased the 1,000 shares on January 5, 2013? Explain.

taxation calculate abby s basis for gain loss and cost recovery for the portion of h 444760

Aug 29, 2021 | Uncategorized

Abby’s home had a basis of $360,000 ($160,000 attributable to the land) and a fair market value of $340,000 ($155,000 attributable to the land) when she converted 70% of it to business use by opening a bed and breakfast. Four years after the conversion, Abby sells the home for $500,000 ($165,000 attributable to the land).

a. Calculate Abby’s basis for gain, loss, and cost recovery for the portion of her personal residence that was converted to business use.

b. Calculate the cost recovery deducted by Abby during the four year period of business use, assuming that the bed and breakfast is opened on January 1 of year 1 and the house is sold on December 31 of year 4.

c. What is Abby’s recognized gain or loss on the sale of the business use portion?

taxation tanya fletcher owns undeveloped land adjusted basis of 80 000 and fair mark 444764

Aug 29, 2021 | Uncategorized

Tanya Fletcher owns undeveloped land (adjusted basis of $80,000 and fair market value of $92,000) on the East Coast. On January 4, 2012, she exchanges it with her sister, Lisa, for undeveloped land on the West Coast and $3,000 cash. Lisa has an adjusted basis of $72,000 for her land, and its fair market value is $89,000. As the real estate market on the East Coast is thriving, on September 1, 2013, Lisa sells the land she acquired for $120,000.

a. What are Tanya’s recognized gain or loss and adjusted basis for the West Coast land on January 4, 2012?

b. What are Lisa’s recognized gain or loss and adjusted basis for the East Coast land on January 4, 2012?

c. What is Lisa’s recognized gain or loss from the September 1, 2013 sale?

d. What effect does Lisa’s 2013 sale have on Tanya? e. Write a letter to Tanya advising her on how she could avoid any recognition of gain associated with the January 4, 2012 exchange prior to her actual sale of the land. Her address is The Corral, El Paso, TX 79968.

taxation tom and frank are brothers each owns investment property in the other s hom 444771

Aug 29, 2021 | Uncategorized

Tom and Frank are brothers. Each owns investment property in the other’s hometown. To make their lives easier, they decide to legally exchange the investment properties. Under the terms of the exchange, Frank will transfer realty (adjusted basis of $52,000; fair market value of $80,000) and Tom will exchange realty (adjusted basis of $60,000; fair market value of $92,000). Tom’s property is subject to a mortgage of $12,000 that will be assumed by Frank.

a. What are Frank’s and Tom’s recognized gains?

b. What are their adjusted bases?

c. As an alternative, Frank has proposed that rather than assuming the mortgage, he will transfer cash of $12,000 to Tom. Tom would use the cash to pay off the mortgage. Advise Tom on whether this alternative would be beneficial to him from a tax perspective.

taxation nell nina and nora sanders who are sisters sell their principal residence 444784

Aug 29, 2021 | Uncategorized

Nell, Nina, and Nora Sanders, who are sisters, sell their principal residence (owned as tenants in common) in which they have lived for the past 25 years. The youngest of the sisters is age 60. The selling price is $960,000, selling expenses and legal fees are $63,000, and the adjusted basis is $60,000 (the fair market value of the residence when inherited from their parents 25 years ago). Because the sisters are going to live in rental housing, they do not plan to acquire another residence. Nell has contacted you on behalf of the three sisters regarding the tax consequences of the sale.

a. Write a letter to Nell advising her of the tax consequences and how taxes can be minimize

d. Nell’s address is 100 Oak Avenue, Billings, MT 59101.

b. Prepare a memo for the tax files.

taxation lo 2 11 heather wants to invest 40 000 in a relatively safe venture 444822

Aug 29, 2021 | Uncategorized

LO.2, 11 Heather wants to invest $40,000 in a relatively safe venture and has discovered two alternatives that would produce the following reportable ordinary income and loss over the next three years: Year Alternative 1 Income (Loss) Alternative 2 Income (Loss) 1 ($20,000) ($48,000) 2 (28,000) 32,000 3 72,000 40,000 She is interested in the after tax effects of these alternatives over a three year horizon. Assume that Heather’s investment portfolio produces sufficient passive income to offset any potential passive loss that may arise from these alternatives, that her cost of capital is 6% (the present value factors are 0.9434, 0.8900, and 0.8396), that she is in the 25% tax bracket, that each investment alternative possesses equal growth potential, and that each alternative exposes her to comparable financial risk. In addition, assume that in the loss years for each alternative, there is no cash flow from or to the investment (i.e., the loss is due to depreciation), while in those years when the income is positive, cash flows to Heather equal the amount of the income. Based on these facts, compute the present value of these two investment alternatives and determine which option Heather should choose.

taxation lo 2 3 7 11 kristin graf 123 baskerville mill road jamison pa 18929 is tryi 444833

Aug 29, 2021 | Uncategorized

LO.2, 3, 7, 11 Kristin Graf (123 Baskerville Mill Road, Jamison, PA 18929) is trying to decide how to invest a $10,000 inheritance. One option is to make an additional investment in Rocky Road Excursions in which she has an at risk basis of $0, suspended losses under the at risk rules of $7,000, and suspended passive losses of $1,000. If Kristin makes this investment, her share of the expected profits this year would be $8,000. If her investment stays the same, her share of profits from Rocky Road Excursions would be $1,000. Another option is to invest $10,000 as a limited partner in the Ragged Mountain Winery; this investment would produce passive income of $9,000. Write a letter to Kristin to review the tax consequences of each alternative. Kristin is in the 28% tax bracket.

taxation lo 2 3 7 11 the end of the year is approaching and maxine has begun to focu 444835

Aug 29, 2021 | Uncategorized

LO.2, 3, 7, 11 The end of the year is approaching, and Maxine has begun to focus on ways of minimizing her income tax liability. Several years ago she purchased an investment in Teal Limited Partnership, which is subject to the at risk and the passive activity loss rules. (Last year Maxine sold a different investment that was subject to these rules but produced passive income.) She believes that her investment in Teal has good long term economic prospects. However, it has been generating tax losses for several years in a row. In fact, when she was discussing last year’s income tax return with her tax accountant, he said that unless “things change” with respect to her investments, she would not be able to deduct losses this year. a. What was the accountant referring to in his comment? b. You learn that Maxine’s current at risk basis in her investment is $1,000 and that her share of the current loss is expected to be $13,000. Based on these facts, how will her loss be treated?

c. After reviewing her situation, Maxine’s financial adviser suggests that she invest at least an additional $12,000 in Teal to ensure a full loss deduction in the current year. How do you react to his suggestion? d. What would you suggest Maxine consider as she attempts to maximize her currentyear deductible loss?

lavor produces lamps and home lighting fixtures its most popular product is a brushe 444945

Aug 29, 2021 | Uncategorized

Lavor produces lamps and home lighting fixtures. Its most popular product is a brushed aluminum desk lamp. This lamp is made from components shaped in the fabricating department and assembled in its implementation department. Information related to the 35,000 desk lamps produced annually follow.

Expected overhead cost and related data for the two production departments follow.

Required

1. Determine the plantwide overhead rate for Lavor using direct labor hours as a base.
2. Determine the total manufacturing cost per unit for the aluminum desk lamp using the plantwide overhead rate.
3. Compute departmental overhead rates based on machine hours in the fabricating department and direct labor hours in the implementation department.

three exercises job costing abc overhead allocation and keep or drop decision 444979

Aug 29, 2021 | Uncategorized

The questions have been detailed in the attachment.

Document Preview:

TransTutors.com  Assignment     Exercise  1:  Job  Costing     • Exercise  5 ­ 41.  Do  required  parts  2,  4,  and  5  only.   • Journal  entries  are  NOT  required.   • Note  that  work ­ in ­ process  inventory  consists  of  jobs  not  completed  at  the   end  of  the  month  and  finished  goods  inventory  consists  of  jobs  compelted  but   not  sold  at  the  end  of  the  month.Exercise  2:  ABC  Overhead  Allocation     • Exercise  7 ­ 39.  Answer  all  required  parts.Exercise  3:  Keep  or  Drop  Decision     • Case  13 ­ 52.  Using  the  information  in  the  case,  answer  the  following   questions:   o Identify  each  of  the  following  items  as  relevant  or  irrelevant  for  the   decision  whether  to  keep  or  drop  the  division.  Briefly  explain  why   each  item  is  revenant  or  irrelevant.   ! Sales  revenue   ! Purchase  of  the  part  from  an  external  supplier   ! Fixed  overhead  to  produce  the  product   ! Fixed  selling  and  administrative  expenses   ! Prime  cost  to  produce  the  product   o Prepare  an  analysis  to  help  the  president  decide  whether  to  show   down  the  division.  Show  your  calculations.

Attachments:

TransTutors.pdf

lump sum purchase 444989

Aug 29, 2021 | Uncategorized

Lump Sum Purchase Garrett Corporation paid $200,000 to acquire land, buildings, and equipment. At the timeof acquisition, Garrett paid $20,000 for an appraisal, which revealed the following values: land, $100,000; buildings, $125,000; and equipment, $25,000.

Use the attached Excel Spreadsheet for your answers.

1. What cost should the company assign to the land, buildings, and equipment, respectively?

2. Assume that Garrett uses IFRS and chooses to use the revaluation model to value its property, plant, and equip ment. At the end of the year, the book value of the land, buildings, and equipment are $88,000, $104,000,and $18,000, respectively. The company determines that the fair value of the land, buildings, and equipment at the end of year is $110,000, $106,000, and $15,000, respectively.

Prepare the journal entries in that Garrett should make to value its property, plant, and equipment.

ryder company which began operations in 2011 invests its idle cash in trading securi 444990

Aug 29, 2021 | Uncategorized

discuss the similarities and differences between assurance services provided by audi 445029

Aug 29, 2021 | Uncategorized

1 Discuss the similarities and differences between assurance services provided by auditors on ‘historical financial information’ and those relating to ‘reliability of subject matter’. About ¾ of a page Please include reference at the bottom of each solution About ¾ of a page 2 What do you think are the important issues that auditors will face in the next five years? About ¾ of a page Please include reference at the bottom of each solution 3 In your own words, please summarize the following sections of the Sarbanes Oxley Act of 2002 and explain their impact on auditing. Please submit your paper following APA format on maximum of one page, not counting the cover and reference pages. SEC. 302. CORPORATE RESPONSIBILITY FOR FINANCIAL REPORTS. SEC. 404. MANAGEMENT ASSESSMENT OF INTERNAL CONTROLS. SEC. 406. CODE OF ETHICS FOR SENIOR FINANCIAL OFFICERS. SEC. 409. REAL TIME ISSUER DISCLOSURES. Please include reference at the bottom of each solution 4 Part 1: Review PCAOB Accounting Standard 5 (AS 5). Discuss the key provisions of AS 5 in your own words and a maximum of one page, following APA format. AS 5 Standard URL:?http://pcaobus.org/Standards/Auditing/Pages/Auditing_Standard_5.aspx Part 2: a. What are the seven parts of an audit report??b. What are the contents of each part. About ¾ of a page Please include reference at the bottom of each solution

Document Preview:

1 Discuss the similarities and differences between assurance services provided by auditors on ‘historical financial information’ and those relating to ‘reliability of subject matter’. About ¾ of a page Please include reference at the bottom of each solution About ¾ of a page 2 What do you think are the important issues that auditors will face in the next five years? About ¾ of a page Please include reference at the bottom of each solution 3 In your own words, please summarize the following sections of the Sarbanes Oxley Act of 2002 and explain their impact on auditing. Please submit your paper following APA format on maximum of one page, not counting the cover and reference pages. SEC. 302. CORPORATE RESPONSIBILITY FOR FINANCIAL REPORTS. SEC. 404. MANAGEMENT ASSESSMENT OF INTERNAL CONTROLS. SEC. 406. CODE OF ETHICS FOR SENIOR FINANCIAL OFFICERS. SEC. 409. REAL TIME ISSUER DISCLOSURES. Please include reference at the bottom of each solution 4 Part 1: Review PCAOB Accounting Standard 5 (AS 5). Discuss the key provisions of AS 5 in your own words and a maximum of one page, following APA format. AS 5 Standard URL:?http://pcaobus.org/Standards/Auditing/Pages/Auditing_Standard_5.aspx Part 2: a. What are the seven parts of an audit report??b. What are the contents of each part. About ¾ of a page Please include reference at the bottom of each solution ????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????

Attachments:

Auditing Ques….rtf

comprehensive problem 5 445101

Aug 29, 2021 | Uncategorized

Comprehensive Problem
Part A:

The following is the comprehensive problem in the textbook which encompasses all of the elements learned in previous chapters. Refer to the objectives for each chapter covered as a review of concepts.

Note: You must complete part A before completing parts B and C.

Essence of Persia, Inc., began operations on January 1, 2010. The company produces a hand and body lotion in an eight ounce bottle called Eternal Beauty. The lotion is sold wholesale in 12 bottle cases for $80 per case. There is a selling commission of $16 per case. The January direct materials, direct labor, and factory overhead costs are as follows:

Part A Break Even Analysis

The management of Essence of Persia, Inc., wishes to determine the number of cases required to break even per month. The utilities cost, which is part of factory overhead, is a mixed cost. The following information was gathered from the first six months of operation regarding this cost:

Instructions:

1. Determine the fixed and variable portion of the utility cost using the high low method. Round the per unit cost to the nearest cent.

At High Point At Low Point
Variable Cost (per unit) $__________ $__________
Total Fixed Cost $__________ $__________
Total Cost $__________ $__________

2. Determine the contribution margin per case. Enter your answer to the nearest cent. For example, 89.458 would be entered as 89.46

Contribution margin per case: $_________

3. Determine the fixed costs per month, including the utility fixed cost from part (1). Enter your answers to the nearest whole number. For example, 89.45 would be entered as 89 and 89.56 would be entered as 90.

Utilities Cost (from part 1) $ __________
Facility Lease $ __________
Equipment Depreciation $ __________
Supplies $ __________
Total Fixed Costs $ __________

4. Determine the break even number of cases per month. Round your answer to the nearest whole number.

__________ Cases

Comprehensive Problem
Part B:

Note: This section is a continuation from Part A of the comprehensive problem. Be sure you have completed Part A before attempting Part B. You may have to refer back to data presented in Part A and use answers from Part A when completing this section.

Essence of Persia, Inc., began operations on January 1, 2010. The company produces a hand and body lotion in an eight ounce bottle called Eternal Beauty. The lotion is sold wholesale in 12 bottle cases for $80 per case. There is a selling commission of $16 per case. The January direct materials, direct labor, and factory overhead costs are as follows:

Part B August Budgets

During July of the current year, the management of Essence of Persia, Inc., asked the controller to prepare August manufacturing and income statement budgets. Demand was expected to be 1,400 cases at $80 per case for August. Inventory planning information is provided as follows:

There was negligible work in process inventory assumed for either the beginning or end of the month; thus, none was assumed. In addition, there was no change in the cost per unit or estimated units per case operating data from January.

5. Prepare the August production budget. Enter all amounts as positive numbers.
ESSENCE OF PERSIA, INC.
Production Budget
For the Month Ended August 31, 2010
                                                             Cases
Expected cases to be sold                      __________
Plus desired ending inventory                 __________
Total                                                     __________

Less estimated beginning inventory        __________
Total units to be produced                     __________

6. Prepare the August direct materials purchases budget. Enter the unit price as dollars and cents but carry out to three decimal places. For example, enter .2357 as 0.236 and enter 3.61 as 3.610. Enter all amounts as positive numbers.
ESSENCE OF PERSIA, INC.
Direct Materials Purchases Budget
For the Month Ended August 31, 2010                                  Natural
                                                            Cream Base              Oils                Bottles                 Total
                                                                (ozs.)                  (ozs.)              (bottles)

Units required for production
Plus desired ending inventory
Less estimated beginning inventory
Direct materials to be purchased
Unit price X X X
Total direct materials to be purchased

7. Prepare the August direct labor budget. For hours required, round to nearest whole hour. For hourly rate, enter the amount as rounded to nearest whole dollar.
ESSENCE OF PERSIA, INC.
Direct Labor Budget
For the Month Ended August 31, 2010
                                                                 Mixing                   Filling                    Total
Hours required for production:
Hand and body lotion
Hourly rate X X
Total direct labor cost

8. Prepare the August factory overhead budget. If an amount box does not require an entry, leave it blank.
ESSENCE OF PERSIA, INC.
Factory Overhead Budget
For the Month Ended August 31, 2010
Factory overhead Fixed Variable Total
Utilities
Facility Lease
Equipment Depreciation
Supplies
Total

9. On your own paper, a spreadsheet or working papers, prepare the August budgeted income statement, including selling expenses. Provide the following amounts:
Sales: $
Cost of direct materials for production: $
Cost of goods sold: $
Gross profit: $
Selling expenses: $
Income before income tax: $

Comprehensive Problem
Part C:

Note: This section is a continuation from Parts A and B of the comprehensive problem. Be sure you have completed Parts A and B before attempting Part C. You may have to refer back to data presented in Parts A and B as well as use answers from those parts when completing this section.

Essence of Persia, Inc., began operations on January 1, 2010. The company produces a hand and body lotion in an eight ounce bottle called Eternal Beauty. The lotion is sold wholesale in 12 bottle cases for $80 per case. There is a selling commission of $16 per case. The January direct materials, direct labor, and factory overhead costs are as follows:

Part C August Variance Analysis

During September of the current year, the controller was asked to perform variance analyses for August. The January operating data provided the standard prices, rates, times, and quantities per case. There were 1,500 actual cases produced during August, which was 200 more cases than planned at the beginning of the month. Actual data for August were as follows:

The prices of the materials were different than standard due to fluctuations in market prices. The standard quantity of materials used per case was an ideal standard. The Mixing Department used a higher grade labor classification during the month, thus causing the actual labor rate to exceed standard. The Filling Department used a lower grade labor classification during the month, thus causing the actual labor rate to be less than standard.

10. Determine and interpret the direct materials price and quantity variances for the three materials. Enter the costs in dollars and cents (unless otherwise instructed). Enter all amounts as positive numbers.
Direct Materials Price Variance:
                                                     Cream Base                 Natural Oils                 Bottles
Actual price                                   $                                $                                 $
Standard price
Difference                                     $                                $                                 $
Actual quantity (cases)                  X                                X                                 X
Direct materials price variance      $                                $                                 $
Indicate if favorable or unfavorable

Enter the standard price to three decimal places. For example, $1.3458 would be entered as 1.346.
Direct Materials Quantity Variance:
                                                                 Cream Base             Natural Oils            Bottles
Actual quantity   
Standard quantity
Difference
Standard price
Direct materials quantity variance
Indicate if favorable or unfavorable

Interpret your results.

The input in the box below will not be graded, but may be reviewed and considered by your instructor.

11. Determine and interpret the direct labor rate and time variances for the two departments. Enter the costs in dollars and cents. Enter all amounts as positive numbers.
Direct Labor Rate Variance:
                                              Mixing Department                   Filling Department
Actual rate
Standard rate
Difference
Actual time (hours)
Direct labor rate variance
Indicate if favorable
or unfavorable

Direct Labor Time Variance:
                                           Mixing Department              Filling Department
Actual time (hours)
Standard time (hours)
Difference
Standard rate
Direct labor time variance
Indicate if favorable
or unfavorable

Interpret your results.

12. Determine and interpret the factory overhead controllable variance. Enter all amounts as positive numbers.
Actual variable overhead $
Variable overhead at standard cost
Factory overhead controllable variance $
Indicate if favorable or unfavorable SelectFavorableUnfavorableItem 66

Interpret your results.

13. Determine and interpret the factory overhead volume variance. When determining the fixed factory overhead rate, round your answer to two decimal places. Enter all amounts as positive numbers.

Normal volume (cases)
Actual volume (cases)
Difference
Fixed factory overhead rate $
Factory overhead volume variance $
Indicate if favorable or unfavorable SelectFavorableUnfavorableItem 73

Interpret your results.

14. Why are the standard direct labor and direct materials costs in the calculations for parts (10) and (11) based on the actual 1,500 case production volume rather than the planned 1,300 cases of production used in the budgets for parts (6) and (7)?

below a comparative balance sheet for 1996 and 1995 are reprinted as at dece 445109

Aug 29, 2021 | Uncategorized

Below, a comparative balance sheet for 1996 and 1995 are reprinted as at December 31 year end. The Parent and the 70% stake Subsidiary are shown in the Balance Sheet.

Q Ltd.

Comparative Balance Sheet

Details:

• In 1996 the subsidiary company paid dividends totaling $96,000
• Net income for 1996 was $480,000
• There was no change in Parent’s 70% interest during the year.
• Equipment that was worn out and obsolete was sold for $10,000 at the end of the year. The equipment originally cost $600,000 and had a net book value of $65,000 on the date it was retired.

Using the information above, produce a consolidated cash flow statement (IFRS, Canada).

Attachments:

review materi….docx

compute the materials quantity variance b compute the materials price variance 445110

Aug 29, 2021 | Uncategorized

PROBLEM # 1 Silmon Corporation makes a product with the following standard costs: In June the company produced 4,200 units using 21,830 grams of the direct material and 2,580 direct labor hours. During the month the company purchased 24,100 grams of the direct material at a price of $6.80 per gram. 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: a. Compute the materials quantity variance. b. Compute the materials price variance. c. Compute the labor efficiency variance. d. Compute the direct labor rate variance. e. Compute the variable overhead efficiency variance. f. Compute the variable overhead rate variance.

PROBLEM # 2 Walkenhorst Corporation’s manufacturing overhead includes $7.80 per machine hour for supplies; $7.30 per machinehour for indirect labor; $21,210 per period for salaries; and $19,950 per period for depreciation.

Required: Determine the predetermined overhead rate if the denominator level of activity is 1,500 machine hours.

Document Preview:

CHAPTER 10 and 10A ASSIGNMENT No credit will be assigned for answers without back up work. Back up work may be on accompanying Excel sheet. PROBLEM # 1 Silmon Corporation makes a product with the following standard costs: In June the company produced 4,200 units using 21,830 grams of the direct material and 2,580 direct labor hours. During the month the company purchased 24,100 grams of the direct material at a price of $6.80 per gram. 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: a. Compute the materials quantity variance. b. Compute the materials price variance. c. Compute the labor efficiency variance. d. Compute the direct labor rate variance. e. Compute the variable overhead efficiency variance. f. Compute the variable overhead rate variance. PROBLEM # 2 Walkenhorst Corporation’s manufacturing overhead includes $7.80 per machine hour for supplies; $7.30 per machine hour for indirect labor; $21,210 per period for salaries; and $19,950 per period for depreciation. Required: Determine the predetermined overhead rate if the denominator level of activity is 1,500 machine hours.

Attachments:

CHAPTER 10 an….pdf

chapter 10 ex….xls

accounting 445135

Aug 29, 2021 | Uncategorized

The BakFirn Corporation, a publicly traded firm, has contracted with YOUCPA,your public accounting firm, for an audit. The BakFirn Corporation manufactures specialty construction tools. The tools are used in the unique construction of homes, warehouses, and multiunit dwellings. The prices range from $1,000 to $5,000 per unit.

During the audit, the audit team has determined the risk assessment of the client. Consequently, the audit has to respond to the assessed risks of material misstatement at the financial statement and assertion levels. The YOUCPA audit team has asked you, the auditor, to prepare a list of actions that you will take to assess the audit risk.

The following information is available in the year just finished:

• The BakFirn Corporation end of year is 12/31/20XX.
• Sales for the previous year were $10,000,000. Sales this year are coming in at $9,500,000.
• The firm is in the construction machine industry, making specialty tools.
• Account receivable days sales outstanding (DSO) has been averaging 90–120 days. The year before, it was80–90 days.
• Inventory turns have decreased from 3 to 2 per year.
• Account receivable and inventory make up 80% of total assets.
• Internal auditing has been reduced by one person to reduce costs.
• An initial test of controls in cash receipt indicated a lack of following procedures.
• The construction industry is in the third year of a downturn. It is forecasted to last two more years.
• The audit team has defined materiality to be focused on account receivable and inventory with $3,000 being the initial threshold. Net income for last year was $1,000,000.
• Inventory at the end of the year was $2,500,000.
• Account receivable at the end of the year was $2,740,000, or 100 DSO.
• The previous auditors did not disclose any fraud or any management issues at the meeting with BakFirn and YOUCPA. The reason for the auditor change was explained as a costs reduction program.

Assignment Guidelines:

1. Audit Assessment Steps:
   1. What is the initial audit risk? High, medium or low?
   2. What factors made you decide on this level?

ravsten company uses a job order costing system on january 1 281401

Aug 29, 2021 | Uncategorized

Ravsten Company uses a job order costing system. On January 1, the beginning of the current year, the company’s inventory balances were as follows:

Raw materials . . . . . . . . . $16,000

Work in process . . . . . . . . $10,000

Finished goods . . . . . . . . $30,000

The company applies overhead cost to jobs on the basis of machine hours. For the current year, the company estimated that it would work 36,000 machine hours and incur $153,000 in manufacturing overhead cost. The following transactions were recorded for the year:

a. Raw materials purchased on account, $200,000.

b. Raw materials requisitioned for use in production, $190,000 (80% direct and 20% indirect).

c. The following costs were incurred for employee services:

Direct labor . . . . . . . . . . . . . . . . $160,000

Indirect labor . . . . . . . . . . . . . . . $27,000

Sales commissions . . . . . . . . . . $36,000

Administrative salaries . . . . . . . $80,000

d. Heat, power, and water costs incurred in the factory, $42,000.

e. Prepaid insurance expired during the year, $10,000 (90% relates to factory operations, and 10% relates to selling and administrative activities).

f. Advertising costs incurred, $50,000.

g. Depreciation recorded for the year, $60,000 (85% relates to factory operations, and 15% relates to selling and administrative activities).

h. Manufacturing overhead cost was applied to production. The company recorded 40,000 machine hours for the year.

i. Goods that cost $480,000 to manufacture according to their job cost sheets were transferred to the finished goods warehouse.

j. Sales for the year totaled $700,000 and were all on account. The total cost to manufacture these goods according to their job cost sheets was $475,000.

Required:

1. Prepare journal entries to record the transactions given above.

2. Prepare T accounts for inventories, Manufacturing Overhead, and Cost of Goods Sold. Post relevant data from your journal entries to these T accounts (don’t forget to enter the opening balances in your inventory accounts). Compute an ending balance in each account.

3. Is Manufacturing Overhead underapplied or overapplied for the year? Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold.

4. Prepare an income statement for the year. (Do not prepare a schedule of cost of goods manufactured; all of the information needed for the income statement is available in the journal entries and T accounts you have prepared.)

rhile industries inc produces colorful and stylish nursing un 281433

Aug 29, 2021 | Uncategorized

Rhile Industries, Inc., produces colorful and stylish nursing uniforms. During September, Rhile Industries completed the following transactions:

Sept.1Purchased direct materials on account, $59,400.

3Requested direct materials costing $26,850 for production (all for Job A).

4Purchased indirect materials costing, $22,830.

8Issued checks for the following overhead costs: utilities, $4,310; manufacturing insurance, $1,925; and repairs, $4,640.

10Requested direct materials costing $29,510 (all used on Job A) and indirect materials costing $6,480 for production.

15Recorded the following gross wages and salaries for employees: direct labor, $62,900 (all for Job A); indirect labor, $31,610; manufacturing supervision, $26,900; and sales commissions, $32,980.

15Applied overhead to production at a rate of 120 percent of direct labor cost.

Sept22Paid the following overhead costs: utilities, $4,270; maintenance, $3,380; and rent, $3,250.

23Recorded the purchase on account and receipt of $31,940 of direct materials and $9,260 of indirect materials.

27Requested $28,870 of direct materials (Job A, $2,660; Job B, $8,400; Job C, $17,810) and $7,640 of indirect materials for production.

30Recorded the following gross wages and salaries for employees: direct labor, $64,220 (Job A, $44,000; Job B, $9,000; Job C, $11,220); indirect labor, $30,290; manufacturing supervision, $28,520; and sales commissions, $36,200.

30Applied overhead to production at a rate of 120 percent of direct labor cost.

30completed and transferred Job A (58,840 units) and Job B (3,525 units) to finished goods inventory; total cost was $322,400.

30Shipped Job A to the customer; total production cost was $294,200, and sales price was $418,240.

30Recorded the following adjusting entries: $2,680 for depreciation manufacturing equipment; and $ 1,230 for property taxes, manufacturing, payable at month end.

Required

1. Record the entries for all Rhile’s transactions in September using T accounts for the following: Materials Inventory, Work in process Inventory, Finished Goods Inventory, Overhead, Cash, Accounts Receivable, Accumulated Depreciation Manufacturing Equipment, Accounts Payable, Payroll payable, Property Taxes Payable, Sales, cost of Goods Sold, and Selling and Administrative Expenses. Use job order cost cards for Job A, Job B, and Job C. Determine the partial account balances. Assume no beginning inventory balances. Assume also that when payroll was recorded, entries were made to the payroll payable account. (Round your answers to the nearest whole dollar.)

2. Computer the amount of underapplied or overapplied overhead for September and transfer it to the Cost of Goods Sold account.

3. Why should the Overhead account’s underapplied or overapplied overhead be transferred to the Cost of Goods Sold account?

riveredge manufacturing company realized too late that it had ma 281434

Aug 29, 2021 | Uncategorized

Riveredge Manufacturing Company realized too late that it had made a mistake locating its controller’s office and its electronic data processing system in the basement. Because of the spring thaw, the Mississippi River overflowed its banks on May 2 and flooded the company’s basement. Electronic data storage was destroyed, and the company had not provided off site storage of data. Some of the paper printouts were located but were badly faded and only partially legible. On May 3, when the flooding subsided, company accountants were able to assemble the following factory related data from the debris and from discussions with various knowledgeable personnel. Data about the following accounts were found:

?c Raw Material (includes indirect material) Inventory: Balance April 1 was $9,600.

?c Work in Process Inventory: Balance April 1 was $15,400.

?c Finished Goods Inventory: Balance April 30 was $13,200.

?c Total company payroll cost for April was $58,400.

?c Accounts payable balance April 30 was $36,000.

?c Indirect material used in April cost $11,600.

?c Other nonmaterial and nonlabor overhead items for April totaled $5,000.

Payroll records, kept at an across town service center that processes the company’s payroll, showed that April’s direct labor amounted to $36,400 and represented 8,800 labor hours. Indirect factory labor amounted to $10,800 in April.

The president’s office had a file copy of the production budget for the current year. It revealed that the predetermined overhead application rate is based on planned annual direct labor hours of 100,800 and expected factory overhead of $302,400.

Discussion with the factory superintendent indicated that only two jobs remained unfinished on April 30. Fortunately, the superintendent also had copies of the job cost sheets that showed a combined total of $4,800 of direct material and $9,000 of direct labor. The direct labor hours on these jobs totaled 2,144. Both of these jobs had been started during April.

A badly faded copy of April’s Cost of Goods Manufactured and Sold Schedule showed cost of goods manufactured was $96,000, and the April 1 Finished Goods Inventory was $16,800.

The treasurer’s office files copies of paid invoices chronologically. All invoices are for raw material purchased on account. Examination of these files revealed that unpaid invoices on April 1 amounted to $12,200; $56,000 of purchases had been made during April; and $36,000 of unpaid invoices existed on April 30.

a. Calculate the cost of direct material used in April.

b. Calculate the cost of raw material issued in April.

c. Calculate the April 30 balance of Raw Material Inventory.

d. Determine the amount of underapplied or overapplied overhead for April.

e. What is the Cost of Goods Sold for April?

robinson parts co uses a job order cost system the 281435

Aug 29, 2021 | Uncategorized

Robinson Parts Co. uses a job order cost system. The following data summarize the operations related to production for June:

a. Materials purchased on account, $705,000.

b. Materials requisitioned, $527,000, of which $45,000 was for general factory use.

c. Factory labor used, $417,800, of which $95,000 was indirect.

d. Other costs incurred on account were for factory overhead, $340,500; selling expenses, $215,000; and administrative expenses, $128,500.

e. Prepaid expenses expired for factory overhead were $23,000; for selling expenses, $15,000; and for administrative expenses, $9,000.

f. Depreciation of office building was $39,000; of office equipment, $19,700; and of warehouse equipment, $12,300.

g. Factory overhead costs applied to jobs, $579,600.

h. Jobs completed, $1,643,700.

i. Cost of goods sold, $1,650,000.

Instructions

Journalize the entries to record the summarized operations.

rockwall plastic products company makes a plastic toy using two 281436

Aug 29, 2021 | Uncategorized

Rockwall Plastic Products Company makes a plastic toy using two departments, parts and assembly. The following data pertain to the parts department’s transactions in 2011.

1. The beginning balance in the Work in Process Inventory account was $11,400. This inventory consisted of parts for 1,000 toys. The beginning balances in the Raw Materials Inventory, Production Supplies, and Cash accounts were $128,000, $2,000, and $400,000, respectively.

2. Direct materials costing $104,000 were issued to the parts department. The materials were sufficient to make 5,000 additional toys.

3. Direct labor cost was $94,000, and indirect labor costs are $9,200. All labor costs were paid in cash.

4. The predetermined overhead rate was $0.30 per direct labor dollar.

5. Actual overhead costs other than indirect materials and indirect labor for the year were $19,000, which was paid in cash.

6. The parts department completed work for 4,500 toys. The remaining toy parts were 20 percent complete. The completed parts were transferred to the assembly department.

7. All of the production supplies had been used by the end of 2011.

8. Over or underapplied overhead was closed to the Cost of Goods Sold account.

Required

a. Determine the number of equivalent units of production.

b. Determine the product cost per equivalent unit.

c. Allocate the total cost between the ending work in process inventory and parts transferred to the assembly department.

d. Record the transactions in a partial set of T accounts.

salem corp contracted for a specialized production machine from 281440

Aug 29, 2021 | Uncategorized

Salem Corp. contracted for a specialized production machine from Quindo Industries, a tool company. The contract specified a price equal to ?oproduction cost plus 15% of production cost.?? A sales executive at Quindo told Salem’s management that the machine’s approximate price would be $1,725,000 based on the following estimates:

Direct material cost ………………………………………………………$500,000

Direct labor cost …………………………………………………………. 400,000

Manufacturing overhead (applied based on machine time) ……………… 600,000

Markup …………………………………………………………………… 225,000

Estimated price to Salem …………………………………………… $1,725,000

Two months later, Quindo Industries delivered the completed machinery, configured and manufactured as per the contract. However, the accompanying invoice caught Salem’s executives by surprise. The invoice provided the following:

Direct material cost ……………………………………………………..$658,000

Direct labor cost ………………………………………………………… 625,000

Manufacturing overhead (applied based on machine time) …………….. 640,000

Markup ………………………………………………………………… 288,450

Estimated price to Salem …………………………………………….. $2,211,450

Upon receiving the invoice, Salem executives requested an audit of the direct material charges because they were more than 30 percent higher than the original estimate. Quindo Industries granted the request and Salem hired your firm to conduct the audit.

a. Describe your strategy for validating the $658,000 charge for direct material and discuss specific documents you will request from Quindo Industries as part of the audit.

b. Describe your strategy for validating the $625,000 charge for direct labor and discuss specific documents you will request from Quindo Industries as part of the audit.

c. How might Quindo Industries have manipulated the predetermined overhead rate?

d. Even if all of the charges are validated, do you perceive the tool company’s behavior in this case as ethical? Explain.

san angelo corp uses a job order costing system for 281444

Aug 29, 2021 | Uncategorized

San Angelo Corp. uses a job order costing system for client contracts related to custom manufactured pulley systems. Elmore Mechanical recently ordered 20,000 pulleys, and the job was assigned #BA468. Information for Job #BA468 revealed the following:

Direct material ……………….$40,800

Direct labor …………………… 49,200

Overhead ……………………… 36,800

Final inspection of the pulleys revealed that 230 were defective. In correcting the defects, an additional $1,150 of cost was incurred ($250 for direct material and $900 for direct labor). After the defects were corrected, the pulleys were included with the other good units and shipped to the customer.

a. Journalize the entry to record incurrence of the rework costs if San Angelo Corp.’s predetermined overhead rate includes normal rework costs.

b. Journalize the entry to record incurrence of the rework costs if rework is normal but specific to this job. If San Angelo Corp. prices jobs on a cost plus basis, should the rework costs be considered in determining the markup?

c. Journalize the entry to record incurrence of the rework costs, assuming that all rework is abnormal.

savallas company is highly automated and uses computers to contr 281449

Aug 29, 2021 | Uncategorized

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 . . . . . . . . . . . . . . . . . . 85,000

Manufacturing overhead cost . . . . . . . . $1,530,000

During the year, a severe economic recession resulted in cutting back production and a buildup of inventory in the company’s warehouse. The company’s cost records revealed the following actual cost and operating data for the year:

Computer hours . . . . . . . . . . . . . . . . . . 60,000

Manufacturing overhead cost . . . . . . . . $1,350,000

Inventories at year end:

Raw materials . . . . . . . . . . . . . . . . . . . . $ 400,000

Work in process . . . . . . . . . . . . . . . . $ 160,000

Finished goods . . . . . . . . . . . . . . . . . $ 1,040,000

Cost of goods sold . . . . . . . . . . . . . . . . $ 2,800,000

Required:

1. Compute the company’s predetermined overhead rate for the year.

2. Compute the underapplied or overapplied overhead for the year.

3. Assume the company closes any underapplied or overapplied overhead directly to Cost of Goods Sold. Prepare the appropriate entry.

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 $43,200 for Work in Process, $280,800 for Finished Goods, and $756,000 for Cost of Goods Sold. Prepare the journal entry to show the allocation.

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?

sharpton fabricators corporation manufactures a variety of parts 281454

Aug 29, 2021 | Uncategorized

Sharpton Fabricators Corporation manufactures a variety of parts for the automotive industry. The company uses a job order costing system with a plantwide predetermined overhead rate based on direct labor hours. On December 10, 2006, the company’s controller made a preliminary estimate of the predetermined overhead rate for 2007. The new rate was based on the estimated total manufacturing overhead cost of $2,475,000 and the estimated 52,000 total direct labor hours for 2007

Predetermined overhead rate = $2,475,000

52,000 hours

= $47.60 per direct labor hour

This new predetermined overhead rate was communicated to top managers in a meeting on December 11. The rate did not cause any comment because it was within a few pennies of the overhead rate that had been used during 2006. One of the subjects discussed at the meeting was a proposal by the production manager to purchase an automated milling machine center built by Central Robotics. The president of Sharpton Fabricators, Kevin Reynolds, agreed to meet with the regional sales representative from Central Robotics to discuss the proposal. On the day following the meeting, Mr. Reynolds met with Jay Warner, Central Robotics’ sales representative. The following discussion took place:

Reynolds: Larry Winter, our production manager, asked me to meet with you since he is interested in installing an automated milling machine center. Frankly, I am skeptical. You’re going to have to show me this isn’t just another expensive toy for Larry’s people to play with.

Warner: That shouldn’t be too difficult, Mr. Reynolds. The automated milling machine center has three major advantages. First, it is much faster than the manual methods you are using. It can process about twice as many parts per hour as your present milling machines. Second, it is much more flexible. There are some up front programming costs, but once those have been incurred, almost no setup is required on the machines for standard operations. You just punch in the code of the standard operation, load the machine’s hopper with raw material, and the machine does the rest.

Reynolds: Yeah, but what about cost? Having twice the capacity in the milling machine area won’t do us much good. That center is idle much of the time anyway.

Warner: I was getting there. The third advantage of the automated milling machine center is lower cost. Larry Winters and I looked over your present operations, and we estimated that the automated equipment would eliminate the need for about 6,000 direct labor hours a year. What is your direct labor cost per hour?

Reynolds: The wage rate in the milling area averages about $21 per hour. Fringe benefits raise that figure to about $30 per hour.

Warner: Don’t forget your overhead.

Reynolds: Next year the overhead rate will be about $48 per hour.

Warner: So including fringe benefits and overhead, the cost per direct labor hour is about $78.

Reynolds: That’s right.

Warner: Since you can save 6,000 direct labor hours per year, the cost savings would amount to about $468,000 a year.

Reynolds: That’s pretty impressive, but you aren’t giving away this equipment are you?

Warner: Several options are available, including leasing and outright purchase. Just for comparison purposes, our 60 month lease plan would require payments of only $300,000 per year.

Reynolds: Sold! When can you install the equipment?

Shortly after this meeting, Mr. Reynolds informed the company’s controller of the decision to lease the new equipment, which would be installed over the Christmas vacation period. The controller realized that this decision would require a recomputation of the predetermined overhead rate for the year 2007 since the decision would affect both the manufacturing overhead and the direct labor hours for the year. After talking with both the production manager and the sales representative from Central Robotics, the controller discovered that in addition to the annual lease cost of $300,000, the new machine would also require a skilled technician/programmer who would have to be hired at a cost of $45,000 per year to maintain and program the equipment. Both of these costs would be included in factory overhead. There would be no other changes in total manufacturing overhead cost, which is almost entirely fixed. The controller assumed that the new machine would result in a reduction of 6,000 direct labor hours for the year from the levels that had initially been planned.

When the revised predetermined overhead rate for the year 2007 was circulated among the company’s top managers, there was considerable dismay.

Required:

1. Recompute the predetermined rate assuming that the new machine will be installed. Explain why the new predetermined overhead rate is higher (or lower) than the rate that was originally estimated for the year 2007.

2. What effect (if any) would this new rate have on the cost of jobs that do not use the new automated milling machine?

3. Why would managers be concerned about the new overhead rate?

4. After seeing the new predetermined overhead rate, the production manager admitted that he probably wouldn’t be able to eliminate all of the 6,000 direct labor hours. He had been hoping to accomplish the reduction by not replacing workers who retire or quit, but that would not be possible. As a result, the real labor savings would be only about 2,000 hours—one worker. In the light of this additional information, evaluate the original decision to acquire the automated milling machine from Central Robotics.

shown below are the job cost related accounts for barnes king 281456

Aug 29, 2021 | Uncategorized

Shown below are the job cost related accounts for the law firm of Barnes, King, and

Morton and their manufacturing company equivalents:

?



Cost data for the month of March follow.

1. Purchased supplies on account $1,500.

2. Issued supplies $1,200 (60% direct and 40% indirect).

3. Time cards for the month indicated labor costs of $50,000 (80% direct and 20% indirect).

4. Operating overhead costs incurred for cash totaled $40,000.

5. Operating overhead is applied at a rate of 90% of direct attorney cost.

6. Work completed totaled $70,000.

Instructions

(a) Journalize the transactions for March. Omit explanations.

(b) Determine the balance of the Work in Process account. Use a Taccount.

sovereign millwork ltd produces reproductions of antique resi 281468

Aug 29, 2021 | Uncategorized

Sovereign Millwork, Ltd., produces reproductions of antique residential moldings at a plant located in Manchester, England. Since there are hundreds of products, some of which are made only to order, the company uses a job order costing system. On July 1, the start of the company’s fiscal year, inventory account balances were as follows:

Raw Materials . . . . . . . . . ?L10,000

Work in Process . . . . . . . . ?L4,000

Finished Goods . . . . . . . . ?L8,000

The company applies overhead cost to jobs on the basis of machine hours. For the fi scal year starting July 1, it was estimated that the plant would operate 45,000 machine hours and incur ?L99,000 in manufacturing overhead cost. During the year, the following transactions were completed:

a. Raw materials purchased on account, ?L160,000.

b. Raw materials requisitioned for use in production, ?L140,000 (materials costing ?L120,000 were chargeable directly to jobs; the remaining materials were indirect).

c. Costs for employee services were incurred as follows:

Direct labor . . . . . . . . . . . . . . . . ?L90,000

Indirect labor . . . . . . . . . . . . . . . ?L60,000

Sales commissions . . . . . . . . . . ?L20,000

Administrative salaries. . . . . . . . ?L50,000

d. Prepaid insurance expired during the year, ?L18,000 (?L13,000 of this amount related to factory operations, and the remainder related to selling and administrative activities).

e. Utility costs incurred in the factory, ?L10,000.

f. Advertising costs incurred, ?L15,000.

g. Depreciation recorded on equipment, ?L25,000. (?L20,000 of this amount was on equipment used in factory operations; the remaining ?L5,000 was on equipment used in selling and administrative activities.)

h. Manufacturing overhead cost was applied to jobs, ?L?. (The company recorded 50,000 machine hours of operating time during the year.)

i. Goods that had cost ?L310,000 to manufacture according to their job cost sheets were completed.

j. Sales (all on account) to customers during the year totaled ?L498,000. These goods had cost

?L308,000 to manufacture according to their job cost sheets.

Required:

1. Prepare journal entries to record the transactions for the year.

2. Prepare T accounts for inventories, Manufacturing Overhead, and Cost of Goods Sold. Post relevant data from your journal entries to these T accounts (don’t forget to enter the opening balances in your inventory accounts). Compute an ending balance in each account.

3. Is Manufacturing Overhead underapplied or overapplied for the year? Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold.

4. Prepare an income statement for the year. (Do not prepare a schedule of cost of goods manufactured; all of the information needed for the income statement is available in the journal entries and T accounts you have prepared.)

spade millhone detective agency performs investigative work for 281469

Aug 29, 2021 | Uncategorized

Spade Millhone Detective Agency performs investigative work for a variety of clients. Recently, Alban Insurance Company asked Spade Millhone to investigate a series of suspicious claims for whiplash. In each case, the claimant was driving on a freeway and was suddenly rear ended by an Alban insured client. The claimants were all driving old, uninsured automobiles. The Alban clients reported that the claimants suddenly changed lanes in front of them, and the accidents were unavoidable. Alban suspected that these ?~?~accidents’’ were the result of insurance fraud. Basically, the claimants cruised the freeways in virtually worthless cars, attempting to cut in front of expensive late model cars that would surely be insured. Alban believed that the injuries were faked.

Rex Spade spent 37 hours shadowing the claimants and taking pictures as necessary. His surveillance methods located the office of a doctor used by all claimants. He also took pictures of claimants performing tasks that they had sworn were now impossible to perform due to whiplash injuries. Victoria Millhone spent 48 hours using the Internet to research court records in surrounding states to locate the names of the claimants and their doctor. She found a pattern of similar insurance claims for each of the claimants.

Spade Millhone Detective Agency bills clients for detective time at $120 per hour. Mileage is charged at $0.50 per mile. The agency logged in 510 miles on the Alban job. The film and developing amounted to $120.

Required:

1. Prepare a job order cost sheet for the Alban job.

2. Why is overhead not specified in the charges? How does Spade Millhone charge clients for the use of overhead (e.g., the ongoing costs of their office—supplies, paper for notes and reports, telephone, utilities)?

3. The mileage is tallied from a source document. Design a source document for this use, and make up data for it that would total the 510 miles driven on the Alban job.

sven olaf just began working as a cost accountant for 281477

Aug 29, 2021 | Uncategorized

Sven Olaf just began working as a cost accountant for COLD industries Inc., which manufactures gift items. Sven is preparing to record summary journal entries for the month. Sven begins by recording the factory wages as follows:

Wages Expense ……………………………. 50,000

Wages payable …………………………….. 50,000

Then the factory depreciation:

Depreciation Expense Factory Machinery …………. 15,000

Accumulated Depreciation factory Machinery ………. 15,000

Sven’s supervisor, Boris Gingrich, walks by and notices the entries. The following conversation takes place:

Boris: That’s a very unusual way to record our factory wages and depreciation for the month.

Sven: What do you mean? This is exactly the way we were taught to recode wages and depreciation in school. You know, debit an expense and credit Cash or payables, or in the case of depreciation, credit Accumulated Depreciation.

Boris: Well, it’s not the credits I’m concerned about. It’s the debits I don’t think you’ve recorded the debits correctly. I wouldn’t mind if you were recording the administrative wages of office equipment depreciation this way, but I’ve got real questions about recording factory wages and factory machinery depreciation this way.

Sven: Now I’m really confused. You mean this is correct for administrative cost, but nor for factory costs? Well, what am I supposed to do and why?

1. Play the role of Boris and answer Sven’s questions.

2. Why would Boris accept the journal entries if they were for administrative costs?

the consulting firm of reznick and fedder accumulates costs asso 281489

Aug 29, 2021 | Uncategorized

The consulting firm of Reznick and Fedder accumulates costs associated with individual cases, using a job order cost system. The following transactions occurred during May:

May 7 Charged 440 hours of professional (lawyer) time to the Daley Co. breech of contract suit to prepare for the trial, at a rate of $175 per hour.

11 Reimbursed travel costs to employees for depositions related to the Daley case, $24,000.

22 Charged 225 hours of professional time for the Daley trial at a rate of $250 per hour.

25Received invoice from consultants Rucker and Putnam for $47,000 for expert testimony related to the Daley trial.

30 Applied office overhead at a rate of $45 per professional hour charged to the Daley case.

31 Paid secretarial and administrative salaries of $20,000 for the month.

31 Used office supplies for the month, $6,000.

31 Paid professional salaries of $55,000 for the month.

31 Billed Daley $260,000 for successful defense of the case.

a. Provide the journal entries for each of the above transactions.

b. How much office overhead is over or underapplied?

c. Determine the gross profit on the Daley case, assuming that over or underapplied office overhead is closed annually to cost of services.

strategi1 sunderland business school module titlec management accounting 281496

Aug 29, 2021 | Uncategorized

: Strategi1 SUNDERLAND BUSINESS SCHOOL Module Titlec Management Accounting Module Code: APC309 Individual assignment Hand in Date: 8 th 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 correct large variances or differences. Question 2 XYZ Limited is a medium sized manufacturing business which makes and sells products to a range of industrial customers who use XYZ’s products in their own products. The working capital of XYZ is typical of a manufacturing organisation in that at any point in time they have cash, trade receivables, inventories of raw materials, 2 work in progress and finished goods and trade payables. The Managing Director of XYZ Limited believes that all parts of the working capital cycle could be improved and has asked you to produce a report which discusses how each part of the working capital cycle could be improved and which critically evaluates the implications of the improvements on XYZ and other connected parties (for example trade receivables and trade payables). 3 Guidance: Students are encouraged to be inquisitive and innovative in their approach as to what should be included in this report. The following may be of some use in providing guidance as to what could possibly be included, although this is in no way meant to be prescriptive. The aim of the assignment is to help you understand how key areas of strategic management accounting are applied in practice. This will include investigating topics from throughout the course linked to the above issues. Some of the principles, concepts ad models will be more relevant to your chosen approach than others and so it is likely that different students will formulate different approaches to the problems. This is normal it is not expected that all of the course content will be used in the analysis concentrate on that which you feel is most important. As part of your work you might find it helpful to briefly explore the underlying theory behind the key areas of investigation that you identify before applying them to report. With a total of 3,000 words you do not have a lot of room for long introductions so assume you are writing to a sophisticated audience who has a working knowledge of strategic management accounting and is well versed in business theory. Numerical example for illustrative purposes may be of use but should not be the main thrust of the work. If used they should be to provide evidence to support your findings from your other analysis of position and policies. If other sources are used remember to reference everything! Please avoid relying too heavily on descriptive sections reproducing information available from course material or the set text. It is your own logical, evaluation of the situation, the interpretation of course material and presentation, with critical analysis, of a coherent strategic plan that will attract high marks. 4 Marking Guide The learning outcomes for this module assessed by this piece of work are Knowledge 1. Critically evaluate a range of key strategic management accounting models and concepts. 2. Critically understand of specific analytical skills in key areas within management accounting at local and international level 3. Critically understand of the role and limitations of management accounting theory. Skills 4. Applied the key management accounting concepts and methodologies in order to contribute to successful decision making in an organisation. In light of this the assessment criteria in the grid below will be used when assessing your work. 5 ASSESSMENT CRITERIA Criteria Fail (

Attachments:

APC309 Strate….pdf

earnings per share diluted earnings and headline earnings per share 281501

Aug 29, 2021 | Uncategorized

Additional information 1. On 1 October 2012 the company issued 2 000 000 ordinary shares at full value. 2. On 1 November 2012 Zenith Ltd had a capitalisation issue of 1 ordinary share for every 4 shares held. 3. The profit for the year ended 31 December 2012 was R630 000(2011: R540 000). 4. Included in total comprehensive income for the year ended 31 Desember 2012 is:

Impairment on equipment Revaluation of a patent Depreciation on equipment

5. The SA normal tax rate is 28%.

R20 000 (before tax) R15 000 (before tax) R 5 000 (before tax)

6. On 31 December 2012 Zenith Ltd paid an ordinary dividend of R200 000 and cumulative preference dividend of R50 ooa No ordinary or preference dividends were declared or paid in 2011.

REQUIRED:

Calculate the basic. the diluted and the headline earnings per ordinary share for the year ended 31 December 2012.

Attachments:

Document1.pdf

the office mart store in south beach experienced the following 281515

Aug 29, 2021 | Uncategorized

The Office Mart store in South Beach experienced the following events during the current year:

1. Incurred $200,000 in marketing costs.

2. Purchased $600,000 of merchandise.

3. Paid $20,000 for transportation in costs.

4. Incurred $200,000 of administrative costs.

5. Took an inventory at year end and learned that goods costing $100,000 were on hand. This compared with a beginning inventory of $150,000 on January 1.

6. Determined that sales revenue during the year was $1,500,000.

7. Debited all costs incurred to the appropriate account and credited to Accounts Payable. All sales were for cash.

Required

Give the amounts for the following items in the Merchandise Inventory account:

a. Beginning balance (BB).

b. Transfers in (TI).

c. Ending balance (EB).

d. Transfers out (TO).

the questions in this exercise are based on toll brothers 281517

Aug 29, 2021 | Uncategorized

The questions in this exercise are based on Toll Brothers, Inc. one of the largest home builders in the United States. To answer the questions, you will need to download Toll Brothers’ 2004 annual report (www.tollbrothers.com/homesearch/servlet/HomeSearch?app=IRannual) and Form 10 K (www.tollbrothers.com/homesearch/servlet/HomeSearch?app=IR10K). You do not need to print these documents to answer the questions.

Required:

1. What is Toll Brothers’ strategy for success in the marketplace? Does the company rely primarily on a customer intimacy, operational excellence, or product leadership customer value proposition? What evidence supports your conclusion?

2. What business risks does Toll Brothers face that may threaten the company’s ability to satisfy stockholder expectations? What are some examples of control activities that the company could use to reduce these risks?

3. Would Toll Brothers be more likely to use process costing or job order costing? Why?

4. What are some examples of Toll Brothers’ direct material costs? Would you expect the bill of materials for each of Toll Brothers’ homes to be the same or different? Why?

5. Describe the types of direct labor costs incurred by Toll Brothers. Would Toll Brothers use employee time tickets at their home sites under construction? Why or why not?

6. What are some examples of overhead costs that are incurred by Toll Brothers?

7. Some companies establish prices for their products by marking up their full manufacturing cost (i.e., the sum of direct materials, direct labor, and manufacturing overhead costs). For example, a company may set prices at 150% of each product’s full manufacturing cost. Does Toll Brothers price its houses using this approach?

8. How does Toll Brothers assign manufacturing overhead costs to cost objects? From a financial reporting standpoint, why does the company need to assign manufacturing overhead costs to cost objects?

tonya martin cma and controller of the parts division of 281531

Aug 29, 2021 | Uncategorized

Tonya Martin, CMA and controller of the Parts Division of Gunderson Inc., was meeting with Doug Adams, manager of the division. The topic of discussion was the assignment of overhead costs to jobs and their impact on the division’s pricing decisions. Their conversation was as follows:

Tonya: Doug, as you know, about 25 percent of our business is based on government contracts, with the other 75 percent based on jobs from private sources won through bidding. During the last several years, our private business has declined. We have been losing more bids than usual. After some careful investigation, I have concluded that we are overpricing some jobs because of improper assignment of overhead costs. Some jobs are also being underpriced. Unfortunately, the jobs being overpriced are coming from our higher volume, labor intensive products; thus, we are losing business.

Doug: I think I understand. Jobs associated with our high volume products are being assigned more overhead than they should be receiving. Then, when we add our standard 40 percent markup, we end up with a higher price than our competitors, who assign costs more accurately.

Tonya: Exactly. We have two producing departments, one labor intensive and the other machine intensive. The labor intensive department generates much less overhead than the machine intensive department. Furthermore, virtually all of our high volume jobs are labor intensive. We have been using a plantwide rate based on direct labor hours to assign overhead to all jobs. As a result, the high volume, labor intensive jobs receive a greater share of the machine intensive department’s overhead than they deserve. This problem can be greatly alleviated by switching to departmental overhead rates. For example, an average high volume job would be assigned $100,000 of overhead using a plantwide rate and only $70,000 using departmental rates. The change would lower our bidding price on high volume jobs by an average of $42,000 per job. By increasing the accuracy of our product costing, we can make better pricing decisions and win back much of our private sector business.

Doug: Sounds good. When can you implement the change in overhead rates? Tonya: It won’t take long. I can have the new system working within four to six weeks—certainly by the start of the new fiscal year.

Doug: Hold it. I just thought of a possible complication. As I recall, most of our government contract work is done in the labor intensive department. This new overhead assignment scheme will push down the cost on the government jobs, and we will lose revenues. They pay us full cost plus our standard markup. This business is not threatened by our current costing procedures, but we can’t switch our rates for only the private business. Government auditors would question the lack of consistency in our costing procedures.

Tonya: You do have a point. I thought of this issue also. According to my estimates, we will gain more revenues from the private sector than we will lose from our government contracts. Besides, the costs of our government jobs are distorted; in effect, we are overcharging the government.

Doug: They don’t know that and never will unless we switch our overhead assignment procedures. I think I have the solution. Officially, let’s keep our plantwide overhead rate. All of the official records will reflect this overhead costing approach for both our private and government business. Unofficially, I want you to develop a separate set of books that can be used to generate the information we need to prepare competitive bids for our private sector business.

Required:

1. Do you believe that the solution proposed by Doug is ethical? Explain.

2. Suppose that Tonya decides that Doug’s solution is not right and objects strongly.

Further suppose that, despite Tonya’s objections, Doug insists strongly on implementing the action. What should Tonya do?

two types of contracts are commonly used when private firms 281536

Aug 29, 2021 | Uncategorized

Two types of contracts are commonly used when private firms contract to provide services to governmental agencies: cost plus and fixed price contracts. The cost plus contract allows the contracting firm to recover the costs associated with providing the product or service plus a reasonable profit. The fixed price contract provides for a fixed payment to the contractor. When a fixed price contract is used, the contractor’s profits are based on its ability to control costs relative to the price received.

In recent years, a number of contractors have either been accused, or found guilty, of improper accounting or fraud in accounting for contracts with the government. One deceptive accounting technique that is sometimes the subject of audit investigations involves cases in which a contractor is suspected of shifting costs from fixed priced contracts to cost plus contracts. In shifting costs from the fixed priced contract, the contractor not only influences costs assigned to that contract but also receives a reimbursement plus an additional amount on the costs shifted to the cost plus contract.

a. Why would a company that conducts work under both cost plus and fixed price contracts have an incentive to shift costs from the fixed price to the cost plus contracts?

b. From an ethical perspective, do you believe such cost shifting is ever justified? Explain.

job order costing transactions d k enterprises makes wicker 281253

Aug 29, 2021 | Uncategorized

JOB ORDER COSTING TRANSACTIONS D & K Enterprises makes wicker baskets.

During the month of August, the company had four job orders: 501, 502, 503, and 504. Overhead was applied at predetermined rates, while actual factory overhead was recorded as incurred. All four jobs were completed.

(a) Purchased raw materials on account, $44,000.

(b) Issued direct materials to production:

Job No. 501: $8,200

Job No. 502: 9,100

Job No. 503: 7,300

Job No. 504: 8,500

(c) Issued indirect materials to production, $5,000.

(d) Incurred direct labor costs:

Job No. 501: $4,800

Job No. 502: 4,100

Job No. 503: 4,800

Job No. 504: 5,000

(e) Charged indirect labor to production, $3,300.

(f) Paid electricity, heating oil, and repair bills for the factory and charged to production, $5,200.

(g) Applied factory overhead to each of the jobs using a predetermined factory overhead rate as follows:

Job No. 501: $3,100

Job No. 502: 3,300

Job No. 503: 3,300

Job No. 504: 3,800

(h) Finished Job Nos. 501–504 and transferred to the finished goods inventory account as products W, X, Y, and Z.

(i) Sold products W, X, Y, and Z for $17,500, $18,000, $16,900, and $19,000, respectively.

REQUIRED

1. Prepare general journal entries to record transactions (a) through (i).

2. Post the entries to the work in process and finished goods T accounts only.

job order costing with under and overapplied factory overhead m 281256

Aug 29, 2021 | Uncategorized

JOB ORDER COSTING WITH UNDER AND OVERAPPLIED FACTORY OVERHEAD M. Evans & Sons manufactures parts for radios. For each job order, it maintains ledger sheets on which it records direct labor, direct materials, and factory overhead applied. The factory overhead control account contains postings of actual overhead costs. At the end of the month, the under or overapplied factory overhead is charged to the cost of goods sold account.

Factory overhead is applied on the basis of direct labor hours. For Job Nos. 101,

102, 103, and 104, direct labor hours are 12,000, 10,000, 11,000, and 18,000, respectively.

The overhead application rate is $1.20/direct labor hour.

(a) Purchased raw materials on account, $50,000.

(b) Issued direct materials:

Job No. 101: $10,000

Job No. 102: 8,000

Job No. 103: 9,000

Job No. 104: 15,000

(c) Issued indirect materials to production, $8,000.

(d) Incurred direct labor costs:

Job No. 101: $22,000

Job No. 102: 19,000

Job No. 103: 20,500

Job No. 104: 30,000

(e) Charged indirect labor to production, $15,000.

(f) Paid electricity bill, taxes, and repair fees for the factory and charged to production, $8,000.

(g) Depreciation expense on factory equipment, $30,000.

(h) Applied factory overhead to Job Nos. 101–104 using the predetermined factory overhead rate (see above).

(i) Finished Job Nos. 101–103 and transferred to the finished goods inventory account as products N, O, and P.

(j) Sold products N and O for $50,000 and $45,400, respectively.

(k) Transferred under or overapplied factory overhead balance to the cost of goods sold account.

REQUIRED

1. Prepare general journal entries to record transactions (a) through (k).

2. Post the entries to the work in process and finished goods T accounts only and determine the ending balances in these accounts.

3. Compute the balance in the job cost ledger and make certain this balance agrees with that in the work in process control account.

journal entries for factory overhead bandy company manufactures 281263

Aug 29, 2021 | Uncategorized

JOURNAL ENTRIES FOR FACTORY OVERHEAD Bandy Company manufactures toys. It keeps a factory overhead account where actual factory overhead costs are recorded as a debit and factory overhead applied is recorded as a credit. At the end of the month, under or overapplied factory overhead is calculated and transferred to the cost of goods sold account. For the month of January, Bandy had the following overhead transactions. Make appropriate general journal entries to record factory overhead and factory overhead applied, and to close the under or overapplied factory overhead to the cost of goods sold account.

Jan. 1 Paid rent, $2,000.

10 Paid electricity bill, $500.

15 Paid repair expense, $3,000.

21 Vacation pay for machine operator, $500 (Wages Payable).

31 Depreciation expense for the month, $500.

31 Factory overhead applied was $6,000.

what are some ways that customers affect a firm s costs 281280

Aug 29, 2021 | Uncategorized

What are some ways that customers affect a firm’s costs?

2. What is the objective of joint cost allocation?

3. When would you advise a firm to use direct intervention to set transfer prices?

Document Preview:

Name:___________________ Cost Accounting Exam III Week Seven I. Theory Questions. For each of the questions listed below, provide a response within the body of the test itself. Be thorough, yet concise. 1. What are some ways that customers affect a firm’s costs? 2. What is the objective of joint cost allocation? 3. When would you advise a firm to use direct intervention to set transfer prices? II. Problem Material. 1. The following represents the financial information of Trovatore Corporation, a manufacturer of electronic components, for two months: ??  ??Required?a. Classify these items into prevention, appraisal, internal failure, or external failure costs.?b. Calculate the ratio of the prevention, appraisal, internal failure, and external failure costs to sales for March and April.  2.  Computer Information Services is a computer software consulting company. Its three major functional areas are computer programming, information systems consulting, and software training. Carol Birch, a pricing analyst in the Accounting Department, has been asked to develop total costs for the functional areas. These costs will be used as a guide in pricing a new contract. Birch assembled the following data on overhead from its two service departments, the Information Systems Department and the Facilities Department.? ?      ?Required: Allocate the service department costs to the user departments using the step method.    ? 3. Meredith Motor Works has just acquired a new Battery Division. The Battery Division produces a standard 12volt battery that it sells to retail outlets at a competitive price of $20. The retail outlets purchase about 600,000 batteries a year. Since the Battery Division has a capacity of 1,000,000 batteries a year, top management is thinking that it might be wise for the company’s Automotive…

Attachments:

AC5240 W7 Exa….doc

i total units produced ii purchases of materials iii gross machine hours base your c 281285

Aug 29, 2021 | Uncategorized

The managing director of SIGAR plc has recently attended a seminar on Total Quality Management and has

expressed interest in implementing a quality initiative aimed at reducing quality costs within the company. As management accountant, you have been asked to prepare a report detailing the potential gains from the

implementation of a quality programme.

The information gathered is shown below:

The company budgets to produce and sell 5,000 units in the third quarter of 2013. Each ceiling sells for € 100

and requires 8 square metres of plastic sheeting per ceiling which costs € 4 per square metre. Machine operating

costs are € 40 per hour.

The units which are rejected at the final production stage and the units which are returned by customers are both

sold as “seconds” at a discount of 40% on the standard selling price. The units returned by customers are replaced

free of charge and incur additional delivery costs of € 10 per ceiling unit.

It is anticipated that the quality programme would cost € 50,000 to implement.

Requirement

(a) The managing director has asked you to prepare calculations for the third quarter of 2013 showing the

following, both before and after implementation of the quality programme:

(i) Total units produced (pre inspection).

(ii) Purchases of materials.

(iii) Gross machine hours.

Base your calculations on the assumption that budgeted sales will be achieved.

(b) On the basis of the estimated cost savings for the third quarter of 2013,

should the company implement the quality program? Explain your answer

fully and include appropriate calculations

Attachments:

AC.docx

krall company uses a job order cost system the following 281287

Aug 29, 2021 | Uncategorized

Krall Company uses a job order cost system. The following data summarize the operations related to production for June 2012, the first month of operations:

a. Materials purchased on account, $105,000.

b. Materials requisitioned and factory labor used:

?

c. Factory overhead costs incurred on account, $4, 125.

d. Depreciation of machinery and equipment, $2,800.

e. The factory overhead rate is $38 per machine hour. Machine hours used:

Job Machine Hours

101 …………… 110

102 …………… 114

103 …………… 90

104 …………… 170

105 …………… 114

106 …………… 124

Total …………. 722

f. Jobs completed: 101, 102, 103, and 105.

g. Jobs were shipped and customers were billed as follows: Job 101, $39,200; Job 102, $50,400; Job 105, $35,400.

Instructions

1. Journalize the entries to record the summarized operations.

2. 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.

3. Prepare a schedule of unfinished jobs to support the balance in the work in process account.

4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.

the xyz company uses a standard cost accounting system and 281290

Aug 29, 2021 | Uncategorized

c0,000 units. At this volume, the company’s variable overhead costs are $.50 per direct labor hour.

The company’s single product has a standard cost of $30.00 per unit. Included in the $30.00 is $13.20 for direct materials (3 yards) and $12.00 of direct labor (2 hours). Production information for the month of March 2007 follows:

Required: (Be sure to indicate whether the variances are favorable or unfavorable.)

a. Prepare the standard cost sheet for the company.

b. Compute the direct material price variance, assuming the material price variance is the responsibility of the company’s purchasing agent.

c. Prepare the journal entry to record the purchase of direct materials.

d. Compute the direct labor efficiency variance.

e. Compute the budgeted fixed overhead costs for the month and for the year.

f. Compute the fixed overhead volume variance.

Document Preview:

Name:___________________ Cost Accounting Exam III Week Seven I. Theory Questions. For each of the questions listed below, provide a response within the body of the test itself. Be thorough, yet concise. 1. What are some ways that customers affect a firm’s costs? 2. What is the objective of joint cost allocation? 3. When would you advise a firm to use direct intervention to set transfer prices? II. Problem Material. 1. The following represents the financial information of Trovatore Corporation, a manufacturer of electronic components, for two months: ??  ??Required?a. Classify these items into prevention, appraisal, internal failure, or external failure costs.?b. Calculate the ratio of the prevention, appraisal, internal failure, and external failure costs to sales for March and April.  2.  Computer Information Services is a computer software consulting company. Its three major functional areas are computer programming, information systems consulting, and software training. Carol Birch, a pricing analyst in the Accounting Department, has been asked to develop total costs for the functional areas. These costs will be used as a guide in pricing a new contract. Birch assembled the following data on overhead from its two service departments, the Information Systems Department and the Facilities Department.? ?      ?Required: Allocate the service department costs to the user departments using the step method.    ? 3. Meredith Motor Works has just acquired a new Battery Division. The Battery Division produces a standard 12volt battery that it sells to retail outlets at a competitive price of $20. The retail outlets purchase about 600,000 batteries a year. Since the Battery Division has a capacity of 1,000,000 batteries a year, top management is thinking that it might be wise for the company’s Automotive…

Attachments:

AC5240 W7 Exa….doc

lincoln construction company builds bridges in october and nove 281293

Aug 29, 2021 | Uncategorized

Lincoln Construction Company builds bridges. In October and November 2010, the firm worked exclusively on a bridge spanning the Calamus River in northern Nebraska. Lincoln Construction’s Precast Department builds structural elements of the bridges in temporary plants located near the construction sites. The Construction Department operates at the bridge site and assembles the precast structural elements. Estimated costs for the Calamus River bridge for the Precast Department were $1,550,000 for direct material, $220,000 for direct labor, and $275,000 for overhead. For the Construction Department, estimated costs for the Calamus River bridge were $350,000 for direct material, $130,000 for direct labor, and $214,500 for overhead. Overhead is applied on the last day of each month. Overhead application rates for the Precast and Construction departments are $25 per machine hour and 165 percent of direct labor cost, respectively.

TRANSACTIONS FOR OCTOBER

1 Purchased $1,150,000 of material (on account) for the Precast Department to begin building structural elements. All of the material was issued to production; of the issuances, $650,000 was considered direct.

5 Installed utilities at the bridge site at a total cost of $25,000. This amount will be paid at a later date.

8 Paid rent for the temporary construction site housing the Precast Department, $5,000.

15 Completed bridge support pillars by the Precast Department and transferred to the construction site.

20 Paid machine rental expense of $60,000 incurred by the Construction Department for clearing the bridge site and digging foundations for bridge supports.

24 Purchased additional material costing $1,485,000 on account.

31 Paid the following bills for the Precast Department: utilities, $7,000; direct labor, $45,000; insurance, $6,220; and supervision and other indirect labor costs, $7,900. Departmental depreciation was recorded, $15,200. The company also paid bills for the Construction Department: utilities, $2,300; direct labor, $16,300; indirect labor, $5,700; and insurance, $1,900. Departmental depreciation was recorded on equipment, $8,750.

31 Issued a check to pay for the material purchased on October 1 and October 24.

31 Applied overhead to production in each department; 6,000 machine hours were worked in the Precast Department in October.

TRANSACTIONS FOR NOVEMBER

1 Transferred additional structural elements from the Precast Department to the construction site. The Construction Department incurred a cash cost of $5,000 to rent a crane.

4 Issued $1,000,000 of material to the Precast Department. Of this amount, $825,000 was considered direct.

8 Paid rent of $5,000 in cash for the temporary site occupied by the Precast Department.

15 Issued $425,000 of material to the Construction Department. Of this amount, $200,000 was considered direct.

18 Transferred additional structural elements from the Precast Department to the construction site.

24 Transferred the final batch of structural elements from the Precast Department to the construction site.

29 Completed the bridge.

30 Paid final bills for the month in the Precast Department: utilities, $15,000; direct labor, $115,000; insurance, $9,350; and supervision and other indirect labor costs, $14,500. Depreciation was recorded, $15,200. The company also paid bills for the Construction Department: utilities, $4,900; direct labor, $134,300; indirect labor, $15,200; and insurance, $5,400. Depreciation was recorded on equipment, $18,350.

30 Applied overhead in each department. The Precast Department recorded 3,950 machine hours in November.

30 Billed the state of Nebraska for the completed bridge at the contract price of $3,450,000.

a. Journalize the entries for the preceding transactions. For purposes of this problem, it is not necessary to transfer direct material and direct labor from one department to the other.

b. Post all entries to T accounts.

c. Prepare a job order cost sheet, which includes estimated costs, for the construction of the bridge.

d. Discuss Lincoln Construction Company’s estimates relative to its actual costs.

long board company manufactures designer paddle boards in a wide 281297

Aug 29, 2021 | Uncategorized

Long Board Company Manufactures designer paddle boards in a wide variety of sizes and styles. The following incomplete ledger accounts refer to transactions that are summarized for May:

?

In addition, the following information is available:

a. Materials and direct labor were applied to six jobs in May:

?

b. Factory overhead is applied to each job at a rate of 150% of direct labor cost.

c. The May 1 work in process balance consisted of two jobs, as follows:

?



d. Customer jobs completed and units sold in May were as follows:

?

Instructions

1. Determine the missing amounts associated with each letter. Provide supporting calculations by completing a table with the following headings:

2. Determine the May 31 balances for each of the inventory accounts and factory overhead.

lrf printing provides printing services to many different corpor 281301

Aug 29, 2021 | Uncategorized

LRF Printing provides printing services to many different corporate clients. Although LRF bids most jobs, some jobs, particularly new ones, are negotiated on a ?ocost plus?? basis. Cost plus means that the buyer is willing to pay the actual cost plus a return (profit) on these costs to LRF. Alice Reiley, controller for LRF, has recently returned from a meeting where LRF’s president stated that he wanted her to find a way to charge more costs to any project that was on a costplus basis. The president noted that the company needed more profits to meet its stated goals this period. By charging more costs to the cost plus projects and therefore fewer costs to the jobs that were bid, the company should be able to increase its profit for the current year. Alice knew why the president wanted to take this action. Rumors were that he was looking for a new position and if the company reported strong profits, the president’s opportunities would be enhanced. Alice also recognized that she could probably increase the cost of certain jobs by changing the basis used to allocate manufacturing overhead.

Instructions

(a) Who are the stakeholders in this situation?

(b) What are the ethical issues in this situation?

(c) What would you do if you were Alice Reiley?

machine tech inc a specialized tool manufacturer uses a job o 281307

Aug 29, 2021 | Uncategorized

Machine Tech Inc., a specialized tool manufacturer, uses a job order costing system. The overhead is allocated to jobs on the basis of direct labor hours. The overhead rate is now $1,500 per direct labor hour. The design engineer thinks that this is illogical. The design engineer has stated the following:

Our accounting system doesn’t make any sense to me. It tells me that every labor hour carries an additional burden of $1,500. This means that direct labor makes up only 5% of our total product cost, yet it drives all our costs. In addition, these rates give my design engineers incentives to ?odesign out?? direct labor by using machine technology. Yet, over the past years as we have had less and less direct labor, the overhead rate keeps going up and up. I won’t be surprised if next year the rate is $2,000 per direct labor hour. I’m also concerned because small errors in our estimates of the direct labor content can have a large impact on our estimated costs. Just a 30 minute error in our estimate of assembly time is worth $750. Small mistakes in our direct labor time estimates really swing our bids around. I think this puts us at a disadvantage when we are going after business.

1. What is the engineer’s concern about the overhead rate going ?oup and up???

2. What did the engineer mean about the large overhead rate being a disadvantage when placing bids and seeking new business?

3. What do you think is a possible solution?

marcus lindsey has just started a new business building and inst 281318

Aug 29, 2021 | Uncategorized

Marcus Lindsey has just started a new business—building and installing custom garage organization systems. Marcus builds the cabinets and work benches in his workshop and then installs them in clients’ garages. Marcus figures his overhead for the coming year will be $9,000. Since his business is labor intensive, he plans to use direct labor hours as his overhead driver. For the coming year, he expects to complete 75 jobs, averaging 20 direct labor hours each. However, he has the capacity to complete 125 jobs averaging 20 direct labor hours each.

Required:

1. Four measures of activity level were mentioned in the text. Which two measures is Marcus considering in computing a predetermined overhead rate?

2. Compute the predetermined overhead rates using each of the measures in your answer to Requirement 1.

3. Which measure should Marcus use? Why?

michael ortiz is a contractor specializing in custom built jacuz 281338

Aug 29, 2021 | Uncategorized

Michael Ortiz is a contractor specializing in custom built jacuzzis. On May 1, 2010, his ledger contains the following data.

Raw Materials Inventory………………. $30,000

Work in Process Inventory……………….12,200

Manufacturing Overhead ………………….2,500 (dr.)

The Manufacturing Overhead account has debit totals of $12,500 and credit totals of $10,000.

Subsidiary data for Work in Process Inventory on May 1 include:

?

During May, the following costs were incurred: (a) raw materials purchased on account

$4,000, (b) labor paid $7,600, (c) manufacturing overhead paid $1,400.

A summary of materials requisition slips and time tickets for the month of May reveals the following.

?



Overhead was charged to jobs on the basis of $0.70 per dollar of direct labor cost.

The jacuzzis for customers Taylor, Baker, and Joiner were completed during May. Each

jacuzzi was sold for $12,000 cash.

Instructions

(a) Prepare journal entries for the May transactions: (i) for purchase of raw materials, factory labor costs incurred, and manufacturing overhead costs incurred; (ii) assignment of raw 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 jobs.

(d) Prepare a cost of goods manufactured schedule forMay.

miller construction inc is a privately held family founded c 281339

Aug 29, 2021 | Uncategorized

Miller Construction, Inc., is a privately held, family founded corporation that builds single and multiple unit housing. Most projects Miller Construction undertakes involve the construction of multiple units. Miller Construction has adopted a job order costing system for determining the cost of each unit. The costing system is fully computerized.

Each project’s costs are divided into the following five categories:

1. General conditions, including construction site utilities, project insurance permits and licenses, architect’s fees, decorating, field office salaries, and cleanup costs.

2. Hard costs, such as subcontractors, direct materials, and direct labor.

3. Finance costs, including title and recording fees, inspection fees, and taxes and discounts on mortgages.

4. Land costs, which refer to the purchase price of the construction site.

5. Marketing costs, such as advertising, sales commissions, and appraisal fees. Recently, Miller Construction purchased land for the purpose of developing 20 new single family houses. The cost of the land was $250,000. Lot sizes vary from 1/4 to ?1 acre. The 20 lots occupy a total of eight acres. General conditions costs for the project totaled $120,000. This $120,000 is common to all 20 units that were constructed on the building site. Job 5, the fifth house built in the project, occupied a 1/4 acre lot and had the following hard costs:

Direct materials ……………$ 8,000

Direct labor ……………….. 6,000

Subcontractor …………….. 14,000

For Job 5, finance costs totaled $4,765 and marketing costs, $800. General conditions costs are allocated on the basis of units produced. Each unit’s selling price is determined by adding 40 percent to the total of all costs.

Required:

1. Identify all production costs that are directly traceable to Job 5. Are all remaining production costs equivalent to overhead found in a manufacturing firm? Are there nonproduction costs that are directly traceable to the housing unit? Which ones?

2. Develop a job order cost sheet for Job 5. What is the cost of building this house? Did you include finance and marketing costs in computing the unit cost? Why or why not? How did you determine the cost of land for Job 5?

3. Which of the five cost categories corresponds to overhead? Do you agree with the way in which this cost is allocated to individual housing units? Can you suggest a different allocation method?

4. Calculate the selling price of Job 5. Calculate the profit made on the sale of this unit.

milner manufacturing uses a job order cost accounting system on 281340

Aug 29, 2021 | Uncategorized

Milner Manufacturing uses a job order cost accounting system. On May 1, the company has a balance in Work in Process Inventory of $3,200 and two jobs in process: Job No. 429 $2,000, and Job No. 430 $1,200. During May, a summary of source documents reveals the following.

?

Milner Manufacturing applies manufacturing overhead to jobs at an overhead rate of 80% of direct labor cost. Job No. 429 is completed during the month.

Instructions

(a) Prepare summary journal entries on May 31 to record: (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 of the unfinishedjobs.

nevin s sporting goods store sells a variety of sporting goods 281351

Aug 29, 2021 | Uncategorized

Nevin’s Sporting Goods Store sells a variety of sporting goods and clothing. In a back room, Nevin’s has set up heat transfer equipment to personalize T shirts for Little League teams. Typically, each team has the name of the individual player put on the back of the T shirt. Last week, Taffy Barnhart, coach of the Stingers, brought in a list of names for her team. Her team consisted of 12 players with the following names: Freda, Cara, Katie, Tara, Heather, Sarah, Kim, Jennifer, Mary Beth, Elizabeth, Kyle, and Wendy. Taffy was quoted a price of $0.50 per letter.

Chip Russell, Nevin’s newest employee, was assigned to Taffy’s job. He selected the appropriate letters, arranged the letters in each name carefully on a shirt, and heat pressed them on. When Taffy returned, she was appalled to see that the names were on the front of the shirts. Jim Nevin, owner of the sporting goods store, assured Taffy that the letters could easily be removed by applying more heat and lifting them off. This process ruins the old letters, so new letters must then be placed correctly on the shirt backs. He promised to correct the job immediately and have it ready in an hour and a half.

Costs for heat transferring are as follows:

Letters (each) …………………………..$0.15

Direct labor (per hour) ………………… 8.00

Overhead (per direct labor hour) ……… 4.00

Taffy’s job originally took one hour of direct labor time. The removal process goes more quickly and should take only 15 minutes.

Required:

1. What was the original cost of Taffy’s job?

2. What is the cost of rework on Taffy’s job? How should the rework cost be treated?

3. How much did Jim Nevin charge Taffy?

on june 30 new haven company s work in process inventory 281366

Aug 29, 2021 | Uncategorized

On June 30, New Haven Company’s work in Process inventory account showed a beginning balance of $29,400. The Materials Inventory account showed a beginning balance of $240,000. Production activity for July was as follows: Direct materials costing $238,820 were requested for production; total manufacturing payroll was $140,690, of which $52,490 was used to pay for indirect labor; indirect materials costing $28,400 were purchased and used; and overhead was applied at a rate of 150 percent of direct labor costs.

1. Record New Haven’s materials, labor, and overhead costs for July in T accounts.

2. Compute the ending balance in the Work in process Inventory account. Assume a transfer of $461,400 to the Finished Goods Inventory account during the period.

partial operating data for charing cross company are presented b 281377

Aug 29, 2021 | Uncategorized

Partial operating data for Charing Cross Company are presented below. Charing Cross Company’s management has set the predetermined overhead rate for the current year at 80 percent of direct labor costs.

Account/Transaction………………………………………………..December

Beginning Materials Inventory ……………………………………. $ 42,000

Beginning Work in Process Inventory…………………………….. 66,000

Beginning Finished Goods Inventory …………………………….. 29,000

Direct materials used ……………………………………………… 168,000

Direct materials purchased………………………………………… a

Direct materials purchased………………………………………… 382,000

Overhead applied …………………………………………………. b

Cost of units completed ………………………………………….. c

Cost of Goods Sold ……………………………………………… 808,000

Ending Materials Inventory………………………………………. 38,000

Ending Finished Goods Inventory……………………………….. d

Using T accounts and the data provided, compute the unknown values. Show all your computations.

plastico produces plastic pipe to customer specifications losse 281382

Aug 29, 2021 | Uncategorized

PlastiCo produces plastic pipe to customer specifications. Losses of less than 5 percent are considered normal because they are inherent in the production process. The company applies overhead to products using machine hours. PlastiCo used the following information in setting its predetermined OH rate for 2010:

Expected overhead other than rework ……………………$850,000

Expected rework costs …………………………………… 75,000

Total expected overhead …………………………………$925,000

Expected machine hours for 2010 ………………….…….. 100,000

During 2010, the following production and cost data were accumulated:

Total good production completed ……………………… 2,000,000 feet of pipe

Total defects ……………………………………………… 40,000 feet of pipe

Ending inventory ………………………………………… 75,000 feet of pipe

Total cost of direct material for Job #B316 ……………$687,100

Total cost of direct labor for Job #B316 …………………$157,750

Total machine hours for Job #B316 ……………………….. 3,080

Cost of reworking defects during 2010 …………………. $75,500

Total actual overhead cost for 2010 ……………………$862,000

a. Determine the overhead application rate for 2010.

b. Determine the cost for Job #B316 in 2010.

c. Assume that the rework is normal and those units can be sold for the regular selling price. How will PlastiCo account for the $75,500 of rework cost?

d. Assume that PlastiCo does not include rework costs in developing the overhead application rate because rework is related to specific jobs. Determine the cost of Job #B316.

e. Using the information from (d), assume that 20 percent of the rework cost was specifically related to 200 feet of pipe produced for Job #B316. The reworked pipe can be sold for $3.50 per foot. What is the total cost of Job #B316?

prudoe compounds produces a variety of chemicals that are used 281398

Aug 29, 2021 | Uncategorized

Prudoe Compounds produces a variety of chemicals that are used by auto manufacturers in their painting processes. With each batch of chemicals produced, some spoilage naturally occurs. Prudoe Compounds includes normal spoilage cost in its predetermined OH rate. For 2010, Prudoe Compounds estimated the following:

Overhead costs, other than spoilage ………………$600,000

Estimated spoilage cost ……………………………. 50,000

Estimated sales value of spoiled materials ………… 20,000

Estimated direct labor hours ………………………. 40,000

a. Prudoe Compounds applies overhead based on direct labor hours. Calculate the predetermined OH rate for 2010.

b. For a batch of chemicals mixed in May 2010, the firm experienced normal spoilage on Job #788. The cost of the spoiled material amounted to $1,730 and the company estimated the salvage value of those materials to be $496. Journalize the entry for the spoilage.

anderson international limited is evaluating a project in erewhon the project will c 442900

Aug 29, 2021 | Uncategorized

Anderson International Limited is evaluating a project in Erewhon. The project will create the following cash flows:

Year Cash Flow

0 –$ 1,330,000

1 505,000

2 570,000

3 465,000

4 420,000

All cash flows will occur in Erewhon and are expressed in dollars. In an attempt to improve its economy, the Erewhonian government has declared that all cash flows created by a foreign company are “blocked” and must be reinvested with the government for one year. The reinvestment rate for these funds is 5 percent.

If Anderson uses a required return of 15 percent on this project, what are the NPV and IRR of the project? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answers to 2 decimal places.

below is a payroll sheet for otis import company for the month of september 2014 442911

Aug 29, 2021 | Uncategorized

Below is a payroll sheet for Otis Import Company for the month of September 2014. The company is allowed a 1% unemployment compensation rate by the state; the federal unemployment tax rate is 0.8% and the maximum for both is $7,000. Assume a 10% federal income tax rate for all employees and a 7.65% FICA tax on employee and employer on a maximum of $113,700. In addition, 1,45% is charged both employer and employee for an employee’s wages in excess of $113,700 per employee.

Instructions

(a) Complete the payroll sheet and make the necessary entry to record the payment of the payroll.

(b) Make the entry to record the payroll tax expenses of Otis Import Company.

(c) Make the entry to record the payment of the payroll liabilities created. Assume that the company pays all payroll liabilities at the end of each month.

taxable income 443933

Aug 29, 2021 | Uncategorized

Hospital bills 9,400

Legal fees in suit against ski resort 3,000

Angela is single and has no dependents. During the current year, her salary is $58,00…

financial statement analysis 443969

Aug 29, 2021 | Uncategorized

Read the requirement in ‘Assignment FSA’ file, then open annual report 2013 of the 2 companies chosen. Fill all the tables in excel file, using these to analyze 4 key features: profitablility, liquidity, gearing &shareholder’s interests. The structureof the paper is also given in a word file. Please remember the words limitation is 3500.

Document Preview:

Financial Statement Analysis Assignment – 2013/14 “The objective of financial statements is to provide information about the financial position, performance and changes in financial position of an entity that is useful to a wide range of users in making economic decisions” (IASB Framework) Do current published financial statements achieve this objective? The analysis should be well explained and cover: Profitability Liquidity Gearing Shareholder Interests 2 chosen FTSE companies: Tate & Lyle Plc. Dairy Crest Plc. Further Information: You are required to present well structured answers in the form of a report to a potential new investor who is looking to invest in one of the companies that you have analysed. The report should use approximately 3500 words (excluding calculations) and should make appropriate and justified conclusions that include an answer to the question above. Learning outcomes assessed: Understand the functioning of the financial reporting system Understand the components of financial statements and the relationships between them Evaluate the relevance of the information contained in a firm’s financial statements Use financial ratios to evaluate a company’s performance Assignments will be graded according to the following criteria: Evidence of critical judgement in selecting, ordering and analysing content in order to present a sound argument The demonstration and understanding of relevant concepts and models The demonstration of insight and originality in responding to the assignment The extent and level of research undertaken and the degree to which this research is appropriately referenced Some useful websites: ? HYPERLINK “http://www.londonstockexchange.com/home/homepage” ?http://www.londonstockexchange.com/home/homepage? ? HYPERLINK “http://www.ft.com/home/uk” ?http://www.ft.com/home/uk?

Attachments:

Assignment FS….docx

Assignment st….docx

4 tables samp….xlsx

Tate Lyle 201….pdf

Dairy Crest 2….pdf

analyzing stockholders equity 443974

Aug 29, 2021 | Uncategorized

A portion of the stockholders’ equity section from the balance sheet of Walland Corporation appears as follows:

Stockholders’ equity:

Preferred stock, 9% cumulative, $50 par, 40,000 shares

Authorized, issued, and outstanding……………………………………… $2,000,000

Preferred stock, 12% noncumulative, $100 par, 8,000

Shares authorized, used, and outstanding……………………..…………… $800,000

Common Stock, $5 par, 400,000 shares authorized, issued

And outstand………………………………………………………………… $2,000,000

Total paid in capital……………………………………………………… $4,800,000

Assume that all the stock was issues on January 1 and that no dividends were paid during the first two years of operations. During the third year, Walland Corporation paid total cash dividends of $736,000.

A. compute the amount of cash dividends paid during the third year to each of the three classes of stock.

B. compute the dividends paid per sharing during the third year for each of the three classes of stock.

C. what was the average issue price of each type of preferred stock?

journalizing purchase and sale transactions 443990

Aug 29, 2021 | Uncategorized

Journalizing purchase and sale transactions
Journalize the following transactions that occurred in September 2015 for Aquamarines. No explanations
are needed. Identify each accounts payable and accounts receivable with the vendor or customer name. Sep. 10 Cash $4,455
Sep. 3 Purchased merchandise inventory on account from Shallin Wholesalers, $5,000.
Terms 1/15, n/EOM, FOB shipping point.
4 Paid freight bill of $80 on September 3 purchase.
4 Purchased merchandise inventory for cash of $1,700.
6 Returned $500 of inventory from September 3 purchase.
8 Sold merchandise inventory to Hermosa Company, $6,000, on account. Terms
2/15, n/35. Cost of goods, $2,640.
9 Purchased merchandise inventory on account from Thomas Wholesalers, $8,000.
Terms 2/10, n/30, FOB destination.
10 Made payment to Shallin Wholesalers for goods purchased on September 3, less return and
discount.
12 Received payment from Hermosa Company, less discount.
13 After negotiations, received a $200 allowance from Thomas Wholesalers.
15 Sold merchandise inventory to Jordan Company, $2,500, on account. Terms 1/10, n/EOM.
Cost of goods, $1,050.
22 Made payment, less allowance, to Thomas Wholesalers for goods purchased on September 9.
23 Jordan Company returned $400 of the merchandise sold on September 15. Cost of goods, $160.
25 Sold merchandise inventory to Smithsons for $1,100 on account that cost $400. Terms of 2/10,
n/30 were offered, FOB shipping point. As a courtesy to Smithsons, $75 of freight was added to
the invoice for which cash was paid by Aquamarines.
26 After negotiations, granted a $100 allowance to Smithsons for merchandise purchased on
September 25.
29 Received payment from Smithsons, less allowance and discount.
30 Received payment from Jordan Company, less return.

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Journalizing purchase and sale transactions Journalize the following transactions that occurred in September 2015 for Aquamarines. No explanations are needed. Identify each accounts payable and accounts receivable with the vendor or customer name. Sep. 10 Cash $4,455 Sep. 3 Purchased merchandise inventory on account from Shallin Wholesalers, $5,000. Terms 1/15, n/EOM, FOB shipping point. 4 Paid freight bill of $80 on September 3 purchase. 4 Purchased merchandise inventory for cash of $1,700. 6 Returned $500 of inventory from September 3 purchase. 8 Sold merchandise inventory to Hermosa Company, $6,000, on account. Terms 2/15, n/35. Cost of goods, $2,640. 9 Purchased merchandise inventory on account from Thomas Wholesalers, $8,000. Terms 2/10, n/30, FOB destination. 10 Made payment to Shallin Wholesalers for goods purchased on September 3, less return and discount. 12 Received payment from Hermosa Company, less discount. 13 After negotiations, received a $200 allowance from Thomas Wholesalers. 15 Sold merchandise inventory to Jordan Company, $2,500, on account. Terms 1/10, n/EOM. Cost of goods, $1,050. 22 Made payment, less allowance, to Thomas Wholesalers for goods purchased on September 9. 23 Jordan Company returned $400 of the merchandise sold on September 15. Cost of goods, $160. 25 Sold merchandise inventory to Smithsons for $1,100 on account that cost $400. Terms of 2/10, n/30 were offered, FOB shipping point. As a courtesy to Smithsons, $75 of freight was added to the invoice for which cash was paid by Aquamarines. 26 After negotiations, granted a $100 allowance to Smithsons for merchandise purchased on September 25. 29 Received payment from Smithsons, less allowance and discount. 30 Received payment from Jordan Company, less return.

Attachments:

Journalizing ….docx

pensions 443997

Aug 29, 2021 | Uncategorized

The assignment is to prepare a spreadsheet (please see attachment).

Below is professor’s requirement.

Turn in twoprintouts–one with numbers and one with formulas (you may need to adjust the column size of some columns tomake sure all formulas are printed out completely),

The spreadsheet you turn in should look like the one on the back of this sheet and should have the same numbers. The spreadsheet should be general enough so I could input new numbers in Cells F3 to F13 and automatically have theentire spreadsheet updated appropriately. Therefore, the numbers that appear in the gray shaded areas of theexample should be the result of formulas referring to other cells in the spreadsheet, NOT the result of simply typingnumbers into your spreadsheet cells.However, your spreadsheet does not have to have these areas shaded.Theportion of the example shaded with polka dots is for your reference information only and does not even need toappear on your spreadsheet.

1.The Service Cost for 1 Year of Service Period (Cell F17) will be a formula calculating the present value ofa deferred annuity. There are multiple ways this could be done, but I have accomplished the present valuecalculations with a PV formula embedded in another PV formula.I have given you the formula I used. Please make sure you understand what the formula is accomplishing.Don’t just take it for granted.

e22 7 change in estimate and error financial statements presented below are the comp 444229

Aug 29, 2021 | Uncategorized

E22 7 (Change in Estimate and Error; Financial Statements) Presented below are the comparative income statements for Pannebecker Inc. for the years 2011 and 2012.

2012 2011

Sales $340,000 $270,000

Cost of sales $200,000 $142,000

Gross profit $140,000 $128,000

Expenses $88,000 $50,000

Net income $52,000 $78,000

Retained earnings (Jan. 1) $125,000 $72,000

Net income $52,000 $78,000

Dividends ($30,000) ($25,000)

Retained earnings (Dec. 31) $147,000 $125,000

The following additional information is provided.

In 2012, Pannebecker Inc. decided to switch its depreciation method from sum of the years’ digits to the straight line method. The assets were purchased at the beginning of 2011 for $90,000 with an estimated useful life of 4 years and no salvage value. (The 2012 income statement contains depreciation expense of $27,000 on the assets purchased at the beginning of 2011.) In 2012, the company discovered that the ending inventory for 2011 was overstated by $20,000; ending inventory for 2012 is correctly stated.

Instructions

Prepare the revised retained earnings statement for 2011 and 2012, assuming comparative statements. (Ignore income taxes.)

derivatives exercise 1 7b product versus general selling and administrative costs 444333

Aug 29, 2021 | Uncategorized

Exercise 1 7B Product versus general, selling, and administrative costs

In reviewing Quartey Company’s September accounting records, Ken Helm, the chief accountant, noted the following depreciation costs.

1. Factory buildings—$25,000.
2. Computers used in manufacturing—$4,000.
3. A building used to display finished products—$8,000.
4. Trucks used to deliver merchandise to customers—$14,000.
5. Forklifts used in the factory—$22,000.
6. Furniture used in the president’s office—$9,000.
7. Elevators in administrative buildings—$6,000.
8. Factory machinery—$9,000.

Required

1. What amount of depreciation cost would be classified as general, selling, and administrative expense?
2. Assume that Quartey manufactured 3,000 units of product and sold 2,000 units of product during the month of September. Determine the amount of depreciation cost that would be included in cost of goods sold.

derivatives exercise 1 16b the fraud triangle 444339

Aug 29, 2021 | Uncategorized

Exercise 1 16B The fraud triangle

The accounting records of Masterson Manufacturing Company (MMC) revealed that the company incurred $3 million of materials, $5 million of production labor, $4 million of manufacturing overhead, and $6 million of general, selling, and administrative expense during 2008. It was discovered that MMC’s chief financial officer (CFO) included $2.6 million dollars of upstream research and development expense in the manufacturing overhead account when it should have been classified as general, selling, and administrative expense. MMC made 5,000 units of product and sold 4,000 units of product in 2008.

Required

1. Indicate whether the elements on the 2008 financial statements (i.e., assets, liabilities, equity, revenue, expense, net income, and cash flow) would be overstated or understated as a result of the misclassification of the upstream research and development expense. Determine the amount of the overstatement or understatement for each element.
2. Speculate as to what would cause the CFO to intentionally misclassify the research and development expense. (Hint: Review the chapter material regarding the fraud triangle.)

derivatives exercise 1 17b applications of the sarbanes oxley act 444340

Aug 29, 2021 | Uncategorized

Exercise 1 17B Applications of the Sarbanes Oxley Act

Greg Madrid, a HealthSouth billing clerk filed a suit under the False Claims Act charging that HealthSouth purchased computer equipment from a company owned by Richard Scrushy’s parents at prices two and three times the normal price. At the time, Richard Scrushy was the CEO of HealthSouth. The overcharges inflated HealthSouth’s expense ratios that the government used when calculating a Medicare reimbursement rate. As a result, the government was overcharged for services provided by HealthSouth. While refusing to recognize any wrongdoing, HealthSouth agreed to pay an $8 million settlement related to the lawsuit brought by the whistleblower.

Required

Explain how the provisions of Sarbanes Oxley would provide protection to a whistleblower such as Greg Madrid.

taxation depreciation on pollution control equipment in the plant 444473

Aug 29, 2021 | Uncategorized

taxation in assessing the validity of a prior court decision discuss the significanc 444494

Aug 29, 2021 | Uncategorized

 LO.1, 4 In assessing the validity of a prior court decision, discuss the significance of the following on the taxpayer’s issue:

a. The decision was rendered by the U.S. District Court of Wyoming. Taxpayer lives in

Wyoming.

b. The decision was rendered by the U.S. Court of Federal Claims. Taxpayer lives in

Wyoming.

c. The decision was rendered by the Second Circuit Court of Appeals. Taxpayer lives in

California.

d. The decision was rendered by the U.S. Supreme Court.

e. The decision was rendered by the U.S. Tax Court. The IRS has acquiesced in the result.

f. Same as (e), except that the IRS has nonacquiesced in the result.

Issue ID

2 38 PART 1 Introduction and Basic Tax Model

landers company manufactures a number of products the standards relating to one of t 444560

Aug 29, 2021 | Uncategorized

Landers Company manufactures a number of products. The standards relating to one of these products are shown below, along with actual cost data for May.

Standard Cost per Unit Actual Cost per Unit

Direct materials:

Standard: 1.80 feet at $3.00 per foot $ 5.40

Actual: 1.75 feet at $3.20 per foot $ 5.60

Direct labor:

Standard: 0.90 hours at $18.00 per hour 16.20

Actual: 0.95 hours at $17.40 per hour 16.53

Variable overhead:

Standard: 0.90 hours at $5.00 per hour 4.50

Actual: 0.95 hours at $4.60 per hour 4.37

Total cost per unit $ 26.10 $ 26.50

Excess of actual cost over standard cost per unit $ 0.40

The production superintendent was pleased when he saw this report and commented: “This $0.40 excess cost is well within the 2 percent limit management has set for acceptable variances. It’s obvious that there’s not much to worry about with this product.”

Actual production for the month was 12,000 units. Variable overhead cost is assigned to products on the basis of direct labor hours. There were no beginning or ending inventories of materials.

Required:

1. Compute the Materials price and quantity variances.

presented below are the comparative income statements for pannebecker inc for the ye 444563

Aug 29, 2021 | Uncategorized

Presented below are the comparative income statements for Pannebecker Inc. for the years 2011 and 2012. 2012 2011 Sales $340,000 $270,000 Cost of sales 200,000 142,000 Gross profi t 140,000 128,000 Expenses 88,000 50,000 Net income $ 52,000 $ 78,000 Retained earnings (Jan. 1) $125,000 $ 72,000 Net income 52,000 78,000 Dividends (30,000) (25,000) Retained earnings (Dec. 31) $147,000 $125,000 The following additional information is provided.

1. In 2012, Pannebecker Inc. decided to switch its depreciation method from sum of the years’ digits to the straight line method. The assets were purchased at the beginning of 2011 for $90,000 with an estimated useful life of 4 years and no salvage value. (The 2012 income statement contains depreciation expense of $27,000 on the assets purchased at the beginning of 2011.)

2. In 2012, the company discovered that the ending inventory for 2011 was overstated by $20,000; ending inventory for 2012 is correctly stated.
Instructions Prepare the revised retained earnings statement for 2011 and 2012, assuming comparative statements. (Ignore income taxes.)

p6 following are financial statements for the genatron manufacturing corporation for 444588

Aug 29, 2021 | Uncategorized

P6. Following are financial statements for the Genatron Manufacturing Corporation for 2012 and 2011.

a. Apply Du Pont analysis to both the 2012 and 2011 financial statements’ data.

b. Explain how financial performance differed between 2012 and 2011.

1 why has this deal attracted venture capital 2 can the founders optimize their 444691

Aug 29, 2021 | Uncategorized

1. Why has this deal attracted venture capital? 2. Can the founders optimize their personal financial returns and simultaneously ensure that SolidWorks has sufficient capital to optimize its chance of succeeding? What factors should the founders consider? 3. How can the venture capitalists optimize their return? What factors should they consider? 4. After you have answered questions 2 and 3, structure a deal that will serve the best interests of the founders, the company, and the venture capital firms.

Attachments:

FirstFile.pdf

us federal taxation personal perspectives and position what is your experience 444700

Aug 29, 2021 | Uncategorized

Personal perspectives and position: What is your experience and knowledge level regarding individual taxes? How did your personal tax experience and knowledge help you in completing this tax return?

1. Other salient perspectives and positions: What resources did you use in preparing this tax return? Provide references to page numbers in your textbook and specific addresses within the IRS website.

1. Key assumptions: How did you decide what filing status to use? How did you decide who the dependents were? How did you decide which income was includible or excluded? How did you decide which expenses were deductible? Please explain.

1. Quality of evidence: Show your work in an Excel attachment for the following two line items: Schedule C Line 4 and Form 1040 Line 44. (When calculating the tax amount, make sure you consider the preferential tax rates for long term capital gains and qualified dividends. If your tax amount calculated in your Excel worksheet is slightly different from the tax amount calculated by the software, just make a note of it on the spreadsheet.)

1. Conclusions, implications, and consequences: From your answers to the line items in this tax return, is this individual in a position to receive a refund from the IRS or to pay additional tax to the IRS?

1. Identify criteria for assessing alternatives: Based on the amount owed or to be refunded, what are the key tax issues that should be considered during the next year? List at least two key tax issues and explain each.

1. Applies criteria to alternatives: Based on these key tax issues, what are the taxpayer’s options for the next year? Identify options for each tax issue listed.

1. Evaluates results: As a tax preparer, what would you recommend this client to do next year based on the options identified?

Attachments:

usfederaltaxa….zip

jeff boyer of rainking company designs and installs custom law 281244

Aug 29, 2021 | Uncategorized

Jeff Boyer, of Rainking Company, designs and installs custom lawn and garden irrigation systems for homes and businesses throughout the state. Each job is different, requiring different materials and labor for installing the systems. Rainking estimated the following for the year:

Number of installations …………………… 250

Number of direct labor hours …………….. 5,000

Direct materials cost ………………………$60,000

Direct labor cost …………………………..$75,000

Overhead cost ……………………………..$65,000

During the year, the following actual amounts were experienced:

Number of installations ………………… 245

Number of direct labor hours …………… 5,040

Direct materials used ……………………$59,350

Direct labor incurred ……………………$75,600

Overhead incurred ………………………$64,150

Required:

1. Should Rainking use process costing or job order costing? Explain.

2. If Rainking uses a normal costing system and overhead is applied on the basis of direct labor hours, what is the cost of an installation that takes $3,500 of direct materials and 50 direct labor hours?

3. Explain why Rainking would have difficulty using an actual costing system.

jester company uses a job order cost system the following 281246

Aug 29, 2021 | Uncategorized

Jester Company uses a job order cost system. The following data summarize the operations related to production for September:

a. Materials purchased on account, $550,000.

b. Materials requisitioned, $485,000, of which $54,200 was for general factory use.

c. Factory labor used, $540,000, of which $130,000 was indirect.

d. Other costs incurred on account were for factory overhead, $175,000; selling expenses, $122,500; and administrative expenses, $79,000.

e. Prepaid expenses expired for factory overhead were $17,500; for selling expenses, $20,300; and for administrative expenses, $11,900.

f. Depreciation of factory equipment was $35,400; of office equipment, $44,200; and of store equipment, $10,650.

g. Factory overhead costs applied to jobs, $385,000.

h. Jobs completed, $1,350,000.

i. Cost of goods sold, $1,325,000.

Instruction

Journalize the entries to record the summarized operations.

assume that the following events occurred at a division of 280893

Aug 29, 2021 | Uncategorized

Assume that the following events occurred at a division of Generic Electric for March of the current year.

1. Purchased $45 million in direct materials.

2. Incurred direct labor costs of $24 million.

3. Determined that manufacturing overhead was $40.5 million.

4. Transferred 80 percent of the materials purchased to work in process.

5. Completed work on 72 percent of the work in process. Costs are assigned equally across all work in process.

6. The inventory accounts have no beginning balances. All costs incurred were debited to the appropriate account and credited to Accounts Payable.

Required

Give the amounts for the following items in the Work in Process account:

a. Transfers in (TI).

b. Transfers out (TO).

c. Ending balance (EB).

assume that you are preparing for a second interview with 280894

Aug 29, 2021 | Uncategorized

Assume that you are preparing for a second interview with a manufacturing company. The company is impressed with your credentials but has indicated that it has several qualified applicants. You anticipate that in this second interview, you must show what you offer over other candidates. You learn the company currently uses a periodic inventory system and is not satisfied with the timeliness of its information and its inventory management. The company manufactures custom order holiday decorations and display items. To show your abilities, you plan to recommend that it use a cost accounting system.

Required

In preparation for the interview, prepare notes outlining the following:

1. Your cost accounting system recommendation and why it is suitable for this company.

2. A general description of the documents that the proposed cost accounting system requires.

3. How the documents in part 2 facilitate the operation of the cost accounting system.

at the beginning of the year paxton company budgeted overhead 280929

Aug 29, 2021 | Uncategorized

At the beginning of the year, Paxton Company budgeted overhead of $180,000 as well as 15,000 direct labor hours. During the year, Job K456 was completed with the following information: direct materials cost, $2,340; direct labor cost, $3,600. The average wage for Paxton Company employees is $10 per hour.

By the end of the year, 15,400 direct labor hours had actually been worked, and Paxton Company incurred the following actual overhead costs for the year:

Equipment lease ……………………………$ 5,000

Depreciation on building ……………………20,000

Indirect labor ………………………………100,000

Utilities ……………………………………..15,000

Other overhead ……………………………..45,000

Required:

1. Calculate the overhead rate for the year.

2. Calculate the total cost of Job K456.

3. Prepare the journal entries to record actual overhead and to apply overhead to production for the year.

4. Is overhead overapplied or underapplied? By how much?

5. Assuming that the normal cost of goods sold for the year is $700,000, what is the adjusted cost of goods sold?

attorney maria conroe uses a job order costing system to 280938

Aug 29, 2021 | Uncategorized

Attorney Maria Conroe uses a job order costing system to collect costs of client engagements. Conroe is currently working on a case for Stacie Olivgra. During the first three months of 2010, Conroe logged 95 hours on the Olivgra case.

In addition to direct hours spent by Conroe, her office assistant has worked 35 hours typing and copying 1,450 pages of documents related to the Olivgra case. Conroe’s assistant works 160 hours per month and is paid a salary of $4,800 per month. The average cost per copy is $0.06 for paper, toner, and machine rental. Telephone and fax charges for long distance calls on the case totaled $145. Last, Conroe has estimated that total office overhead for rent, utilities, parking, and so on amount to $9,600 per month and that, during a normal month, the office is open every hour that the assistant is at work. Overhead charges are allocated to clients based on the number of hours of assistant’s time.

a. Conroe desires to set the billing rate so that she earns, at a minimum, $190 per hour, and covers all direct and allocated indirect costs related to a case. What minimum charge per hour (rounded to the nearest $10) should Conroe charge Olivgra? (Hint: Be sure to include office overhead.) What would be the total billing to Olivgra?

b. All the hours that Conroe spends at the office are not necessarily billable hours. In addition Conroe did not consider certain other expenses such as license fees, country club dues, automobile costs, and other miscellaneous expenses when she determined the amount of overhead per month. Therefore, Conroe is considering billing clients for direct costs plus allocated indirect costs plus a 40 percent margin to cover nonbillable time as well as other costs. What will Conroe charge Olivgra in total for the time spent on her case?

c. Which billing method is more likely to be accepted by clients and why?

birmingham contractors uses a job order costing system in may 280954

Aug 29, 2021 | Uncategorized

Birmingham Contractors uses a job order costing system. In May 2010, the company made a $3,300,000 bid to build a pedestrian overpass over the beach highway at Gulf Shores, Alabama. Birmingham Contractors won the bid and assigned #515 to the project. Its completion date was set at December 15, 2010. The following costs were estimated for completion of the overpass: $1,240,000 for direct material, $670,000 for direct labor, and $402,000 for overhead.

During July, work began on job #515; direct material cost assigned to Job #515 was $121,800, and direct labor cost associated with it was $175,040. The firm uses a predetermined OH rate of 60 percent of direct labor cost. Birmingham Contractors also worked on several other jobs during July and incurred the following costs:

Direct material (including Job #515) issued …………….$579,300

Direct labor (including Job #515) accrued ……………… 584,000

Indirect labor accrued …………………………………… 55,800

Administrative salaries and wages accrued ……………… 39,600

Depreciation on construction equipment ………………… 26,400

Depreciation on office equipment ………………….……. 7,800

Client entertainment (on accounts payable) …………….. 11,100

Advertising for firm (paid in cash) ………………………. 6,600

Indirect material (from supplies inventory) …………….. 18,600

Miscellaneous expenses (design related; to be paid

in the following month) …………………………. 10,200

Accrued utilities (for office, $1,800;

for construction, $5,400)………………………… 7,200

During July, Birmingham Contractors completed several jobs that had been in process before the beginning of the month. These completed jobs sold for $1,224,000 and payment will be made to the company in August. The related job cost sheets showed costs associated with those jobs of $829,000. At the beginning of July, Birmingham Contractors had Work in Process Inventory of $871,800.

a. Prepare a job order cost sheet for Job #515, including all job details, and post the appropriate cost information for July.

b. Prepare journal entries for the preceding information.

c. Prepare a Cost of Goods Manufactured Schedule for July for Birmingham Contractors.

d. Assuming that the company pays income tax at a 40 percent rate, prepare an income statement for Birmingham Contractors.

bonivo inc manufactures computers from commodity components to 280961

Aug 29, 2021 | Uncategorized

Bonivo Inc. manufactures computers from commodity components to client specifications. The company has historically tracked only the cost of components to computers, and computer selling prices, or bids, have been based solely on the cost of components plus a markup sufficient to cover the other operating costs. In recent years, the company has encountered increasing price pressure from customers and, as a result, computers have often been sold at less than the full markup price—causing continually decreasing profits for the firm.

As you have provided other financial services to Bonivo Inc. in the past, company management has asked you for guidance regarding approaches that could be taken to better manage the firm’s profits and prices. You decide that a job order costing system could be helpful to Bonivo.

a. Explain how a job order costing system could help Bonivo better control costs and profits.

b. Explain why Bonivo should not base computer prices only on component costs plus a markup.

canyon city co uses a job order costing system that 280972

Aug 29, 2021 | Uncategorized

Canyon City Co. uses a job order costing system that combines actual direct material and actual direct labor costs with a predetermined overhead charge based on machine hours. Expected overhead and machine hours of $1,421,000 and 145,000, respectively, were used in developing the predetermined rate for 2010.

During 2010, the company worked on Job #876 and incurred the following costs and machine hours:

Direct material ……………$47,500

Direct labor ……………… 21,800

Machine hours ……………. 325

a. What is the total cost of Job #876? What is the cost per unit if 1,500 units were made? (Round to the nearest cent.)

b. In completing Job #876, 30 units were defective and had to be reworked at a cost of $25 each. Assume that spoilage and rework costs were included in the original estimated overhead costs. Where does the $750 rework cost appear in the accounts of Canyon City Co.?

c. Disregard the facts in (b). Upon completing Job #876, the quality control inspector determined that 30 units were spoiled and would be unacceptable to the customer. Thirty additional good units were made at a total cost of $1,390. The spoiled units were sold for $240 as ?oseconds?? to an outlet store. What is the total cost of Job #876?

companies use time sheets for two primary reasons to know 280981

Aug 29, 2021 | Uncategorized

Companies use time sheets for two primary reasons: to know how many hours an employee works and, in a job order production situation, to trace work hours to products. An article (?oAltering of Worker Time Cards Spurs Growing Number of Suits?? by Steven Greenhouse) in the New York Times on April 4, 2004, described a recent corporate practice of deleting worker hours to increase organizational profitability. Use your library database to obtain this article and discuss the following:

a. What companies were mentioned as having been found to engage in this practice?

b. Why is it easier now than in the past to engage in this practice?

c. As a member of upper management, how would you respond to finding out that this practice was being used in some of your stores? Provide an answer that addresses both the short run and the long run.

custom metal works produces castings and other metal parts to 280994

Aug 29, 2021 | Uncategorized

Custom Metal Works produces castings and other metal parts to customer specifications. The company uses a job order costing system and applies overhead costs to jobs on the basis of machine hours. At the beginning of the year, the company estimated that it would work 576,000 machine hours and incur $4,320,000 in manufacturing overhead cost. The company had no work in process at the beginning of the year. The company spent the entire month of January working on one large order—Job 382, which was an order for 8,000 machined parts. Cost data for January follow:

a. Raw materials purchased on account, $315,000.

b. Raw materials requisitioned for production, $270,000 (80% direct and 20% indirect).

c. Labor cost incurred in the factory, $190,000, of which $80,000 was direct labor and $110,000 was indirect labor.

d. Depreciation recorded on factory equipment, $63,000.

e. Other manufacturing overhead costs incurred, $85,000 (credit Accounts Payable).

f. Manufacturing overhead cost was applied to production on the basis of 40,000 machine hours actually worked during January.

g. The completed job was moved into the finished goods warehouse on January 31 to await delivery to the customer. (In computing the dollar amount for this entry, remember that the cost of a completed job consists of direct materials, direct labor, and applied overhead.)

Required:

1. Prepare journal entries to record items (a) through (f) above. Ignore item (g) for the moment.

2. Prepare T accounts for Manufacturing Overhead and Work in Process. Post the relevant items from your journal entries to these T accounts.

3. Prepare a journal entry for item (g) above.

4. Compute the unit product cost that will appear on the job cost sheet for Job 382.

during september the following transactions were completed and 281045

Aug 29, 2021 | Uncategorized

During September, the following transactions were completed and reported by Golder Products, Inc.:

a. Purchased materials on account for $50,100.

b. Issued materials to production to fill job order requisitions: direct materials, $30,000; indirect materials, $15,000.

c. Accumulated payroll for the month: direct labor, $70,000; indirect labor, $32,000; administrative, $18,000; sales, $9,900.

d. Accrued depreciation on factory plant and equipment of $13,400.

e. Accrued property taxes during the month for $1,450 (on factory).

f. Recorded expired insurance with a credit to the prepaid insurance account of $6,200.

g. Incurred factory utilities costs of $6,000.

h. Paid advertising costs of $7,200.

i. Accrued depreciation: office equipment, $1,500; sales vehicles, $650.

j. Paid legal fees for preparation of lease agreements of $750.

k. Charged overhead to production at a rate of $9 per direct labor hour. Recorded 8,000 direct labor hours during the month.

l. Incurred cost of jobs completed during the month of $158,000.

The company also reported the following beginning balances in its inventory accounts:

Materials Inventory ………………………$ 5,000

Work in Process Inventory ……………… 30,000

Finished Goods Inventory ………………. 60,000

Required:

1. Prepare journal entries to record the transactions occurring in September.

2. Prepare T accounts for Materials Inventory, Overhead Control, Work in Process Inventory, and Finished Goods Inventory. Post all relevant entries to these accounts.

3. Prepare a schedule of cost of goods manufactured.

4. If the overhead variance is all allocated to Cost of Goods Sold, by how much will Cost of Goods Sold decrease or increase?

elliott manufacturing uses a job order cost system in each 281064

Aug 29, 2021 | Uncategorized

Elliott Manufacturing uses a job order cost system in each of its three manufacturing departments. Manufacturing overhead is applied to jobs on the basis of direct labor cost in Department A, direct labor hours in Department B, and machine hours in Department C. In establishing the predetermined overhead rates for 2010 the following estimates were made for the year.

?

During January, the job cost sheets showed the following costs and production data.

?

Instructions

(a) Compute the predetermined overhead rate for each department.

(b) Compute the total manufacturing costs assigned to jobs in January in each department.

(c) Compute the under or overapplied overhead for each department at January31.

enos inc is a construction company specializing in custom patio 281065

Aug 29, 2021 | Uncategorized

Enos 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, 2010, the general ledger for Enos Inc. contains the following data.

Raw Materials Inventory $4,051 Manufacturing Overhead Applied $32,129
Work in Process Inventory $5,662 Manufacturing Overhead Incurred $31,140

Subsidiary data for Work in Process Inventory on June 1 are as follows.

Job Cost Sheets
Customer Job
Cost Element Fowler Haines Krantz
Direct materials $ 554 $ 884 $ 981
Direct labor 320 580 510
Manufacturing overhead 416 754 663
$1,290 $2,218 $2,154

During June, raw materials purchased on account were $4,047, and all wages were paid. Additional overhead costs consisted of depreciation on equipment $674 and miscellaneous costs of $322 incurred on account.
A summary of materials requisition slips and time tickets for June shows the following.

Customer Job Materials
Requisition Slips Time Tickets
Fowler $ 841 $ 390
Elgin 1,900 820
Haines 533 380
Krantz 1,294 1,700
Fowler 304 420
4,872 3,710
General use 1,207 1,600
$6,079 $5,310
Overhead was charged to jobs at the same rate of $1.3 per dollar of direct labor cost. The patios for customers Fowler, Haines, and Krantz were completed during June and sold for a total of $19,351. Each customer paid in full.

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. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2.)

Account/Description Debit Credit

(Purchase of raw materials.)

(To record factory labor costs.)

(To record manufacturing overhead costs.)
(To assign raw materials to production.)

(To assign factory labor to production.)

(To assign manufacturing overhead to production.)

(To record completion of jobs.)

(To record sale of jobs.)

(To record cost of jobs.)

Post the entries to Work in Process Inventory.
Work in Process Inventory
6/1 Balance
June Completed Work

Direct materials

Direct labor

Overhead applied

6/30 Balance

Reconcile the balance in Work in Process Inventory with the costs of unfinished jobs.
Work in process inventory $

Job:
$

Prepare a cost of goods manufactured schedule for June. (List amounts from largest to smallest eg 10, 5, 3, 2.)
ENOS INC.
Cost of Goods Manufactured Schedule
For the Month Ended June 30, 2010

$

$
Total manufacturing costs

Total cost of work in process

Less:

Cost of goods manufactured $

fancher company is a cosmetics manufacturer its assembly depart 281094

Aug 29, 2021 | Uncategorized

Fancher Company is a cosmetics manufacturer. Its assembly department receives raw cosmetics from the molding department. The assembly department places the raw cosmetics into decorative containers and transfers them to the packaging department. The assembly department’s Work in Process Inventory account had a $62,000 balance as of August

1. During August, the department incurred raw materials, labor, and overhead costs amounting to $72,000, $85,000, and $80,000, respectively. The department transferred products that cost $342,000 to the packaging department. The balance in the assembly department’s Work in Process Inventory account as of August 31 was $83,000.

Required

Determine the cost of raw cosmetics transferred from the molding department to the assembly department during August.

foley company uses a job order costing system the following dat 281098

Aug 29, 2021 | Uncategorized

Foley Company uses a job order costing system. The following data relate to the month of October, the first month of the company’s fiscal year:

a. Raw materials purchased on account, $210,000.

b. Raw materials issued to production, $190,000 (80% direct and 20% indirect).

c. Direct labor cost incurred, $49,000; and indirect labor cost incurred, $21,000.

d. Depreciation recorded on factory equipment, $105,000.

e. Other manufacturing overhead costs incurred during October, $130,000 (credit Accounts Payable).

f. The company applies manufacturing overhead cost to production on the basis of $4 per machine hour. There were 75,000 machine hours recorded for October.

g. Production orders costing $510,000 according to their job cost sheets were completed during October and transferred to Finished Goods.

h. Production orders that had cost $450,000 to complete according to their job cost sheets were shipped to customers during the month. These goods were sold on account at 50% above cost.

Required:

1. Prepare journal entries to record the information given above.

2. Prepare T accounts for Manufacturing Overhead and Work in Process. Post the relevant information above to each account. Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $35,000.

for the year ended december 281122

Aug 29, 2021 | Uncategorized

For the year ended December 31, 2010, the job cost sheets of Moxie Company contained the following data.

?

Other data:

1. Raw materials inventory totaled $20,000 on January 1. During the year, $100,000 of raw materials were purchased on account.

2. Finished goods on January 1 consisted of Job No. 7648 for $93,000 and Job No. 7649 for $62,000.

3. Job No. 7650 and Job No. 7651 were completed during the year.

4. Job Nos. 7648, 7649, and 7650 were sold on account for $490,000.

5. Manufacturing overhead incurred on account totaled $135,000.

6. Other manufacturing overhead consisted of indirect materials $12,000, indirect labor $18,000 and depreciation on factory machinery $19,500.

Instructions

(a) Prove the agreement of Work in Process Inventory with job cost sheets pertaining to unfinished work. Calculate each of the following, then post each to the T account: (1) beginning balance, (2) direct materials, (3) direct labor, (4) manufacturing overhead, and (5) completed jobs.

(b) Prepare the adjusting entry for manufacturing overhead, assuming the balance is allocated entirely to cost of goods sold.

(c) Determine the gross profit to be reported for2010.

for the year ended december 31 2010 the job cost 281123

Aug 29, 2021 | Uncategorized

For the year ended December 31, 2010, the job cost sheets of DeVoe Company contained the following data.

?

Other data:

1. Raw materials inventory totaled $15,000 on January 1. During the year, $140,000 of raw materials were purchased on account.

2. Finished goods on January 1 consisted of Job No. 7638 for $87,000 and Job No. 7639 for $92,000.

3. Job No. 7640 and Job No. 7641 were completed during the year.

4. Job Nos. 7638, 7639, and 7641 were sold on account for $530,000.

5. Manufacturing overhead incurred on account totaled $120,000.

6. Other manufacturing overhead consisted of indirect materials $14,000, indirect labor $20,000, and depreciation on factory machinery $8,000.

Instructions

(a) Prove the agreement of Work in Process Inventory with job cost sheets pertaining to unfinished work. Use a single T account for Work in Process Inventory. Calculate each of the following, then post each to the T account: (1) beginning balance, (2) direct materials, (3) direct labor, (4) manufacturing overhead, and (5) completed jobs.

(b) Prepare the adjusting entry for manufacturing overhead, assuming the balance is allocated entirely to Cost of Goods Sold.

(c) Determine the gross profit to be reported for2010.

founded in 1970 parlex corporation is a world leader in 281130

Aug 29, 2021 | Uncategorized

Founded in 1970, Parlex Corporation is a world leader in the design and manufacture of flexible interconnect products. Utilizing proprietary and patented technologies, Parlex produces custom flexible interconnects including flexible circuits, polymer thick film, laminated cables, and value added assemblies for sophisticated electronics used in automotive, telecommunications, computer, diversified electronics, and aerospace applications. In addition to manufacturing sites in Methuen, Massachusetts; Salem, New Hampshire; Cranston, Rhode Island; San Jose, California; Shanghai, China; Isle of Wight, UK; and Empalme, Mexico, Parlex has logistic support centers and strategic alliances throughout North America, Asia, and Europe.

The following information was provided in the company’s annual report.

PARLEX COMPANY

Notes to the Financial Statements

The Company’s products are manufactured on a job order basis to customers’ specifications. Customers submit requests for quotations on each job, and the Company prepares bids based on its own cost estimates. The Company attempts to reflect the impact of changing costs when establishing prices. However, during the past several years, the market conditions for flexible circuits and the resulting price sensitivity haven’t always allowed this to transpire. Although still not satisfactory, the Company was able to reduce the cost of products sold as a percentage of sales to 85% this year versus 87% that was experienced in the two immediately preceding years. Management continues to focus on improving operational efficiency and further reducing costs.

Instructions

(a) Parlex management discusses the job order cost system employed by their company. What are several advantages of using the job order approach to costing?

(b) Contrast the products produced in a job order environment, like Parlex, to those produced when process cost systems are used.

granger products recorded the following transactions for the jus 281143

Aug 29, 2021 | Uncategorized

Granger Products recorded the following transactions for the just completed month. The company had no beginning inventories.

a. $75,000 in raw materials were purchased for cash.

b. $73,000 in raw materials were requisitioned for use in production. Of this amount, $67,000 was for direct materials and the remainder was for indirect materials.

c. Total labor wages of $152,000 were incurred and paid. Of this amount, $134,000 was for direct labor and the remainder was for indirect labor.

d. Additional manufacturing overhead costs of $126,000 were incurred and paid.

e. Manufacturing overhead costs of $178,000 were applied to jobs using the company’s predetermined overhead rate.

f. All of the jobs in progress at the end of the month were completed and shipped to customers.

g. The underapplied or overapplied overhead for the period was closed out to Cost of Goods Sold.

Required:

1. Post the above transactions to T accounts.

2. Determine the cost of goods sold for the period.

huegel hollow resort has ordered 20 rotomolded kayaks from curre 281177

Aug 29, 2021 | Uncategorized

Huegel Hollow Resort has ordered 20 rotomolded kayaks from Current Designs. Each kayak will be formed in the rotomolded oven, cooled, and then the excess plastic trimmed away. Then, the hatches, seat, ropes, and bungees will be attached to the kayak. Dave Thill, the kayak plant manager, knows that manufacturing each kayak requires 54 pounds of polyethylene powder and a finishing kit (rope, seat, hardware, etc.). The polyethylene powder used in these kayaks costs $1.50 per pound, and the finishing kits cost $170 each. Each kayak will use two kinds of labor: 2 hours of more skilled type I labor from people who run the oven and trim the plastic, and 3 hours of less skilled type II labor from people who attach the hatches and seat and other hardware. The type I employees are paid $15 per hour, and the type II employees are paid $12 per hour. For purposes of this problem, assume that overhead is allocated to all jobs at a rate of 150% of direct labor costs.

Instructions

Determine the total cost of the Huegel Hollow order and the cost of each individual kayak in the order. Identify costs as direct materials, direct labor, or manufacturing overhead.

insides an interior decorating firm uses a job order costing 281228

Aug 29, 2021 | Uncategorized

Insides, an interior decorating firm, uses a job order costing system and applies overhead to jobs using a predetermined rate of $17 per direct labor hour. On June 1, 2010, Job #918 was the only job in process. Its costs included direct material of $8,250 and direct labor of $500 (25 hours at $20 per hour). During June, the company began work on Jobs #919, #920, and #921. Direct material used for June totaled $21,650. June’s direct labor cost totaled $6,300. Job #920 had not been completed at the end of June, and its direct material and direct labor charges were $2,850 and $800, respectively. All other jobs were completed in June.

a. What was the total cost of Job #920 as of the end of June 2010?

b. What was the cost of goods manufactured for June 2010?

c. If actual overhead for June was $5,054, was the overhead underapplied or overapplied for the month? By how much?

see attachment 438615

Aug 29, 2021 | Uncategorized

Accounting – Partnership Assignment Business made up: Just Juice Bar so it’s a JUICE BUSINESS numbers have to be realistic. Partners are called: William, Christina, Ryan (3 Partners) PART 1 – Commencement of business PART 1 Commencement of business (Just Juice Bar) 1. What date did business commence? (Any date up to you) 2. Work out how much it will cost to commence business. 3. The capital to start business must come from the partners. Work out how much each partner is contributing (REALISTIC NUMBERS, REMEMBER IT’S A JUICE BAR BUSINESS).

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Accounting – Partnership Assignment Business made up: Just Juice Bar so it’s a JUICE BUSINESS numbers have to be realistic. Partners are called: William, Christina, Ryan (3 Partners) PART 1 – Commencement of business PART 1 Commencement of business (Just Juice Bar) 1. What date did business commence? (Any date up to you) 2. Work out how much it will cost to commence business. 3. The capital to start business must come from the partners. Work out how much each partner is contributing (REALISTIC NUMBERS, REMEMBER IT’S A JUICE BAR BUSINESS). Write the details of each partner’s contribution in narrative form. At least one of the partners must have contributed more than just cash. If other assets are introduced, they must be realistic. Explain where they came from if necessary. 2. Prepare general journal entries to account for the capital contributed by the partners. Include narrations. (Example of general journal entry attached) 3. Prepare a statement of financial position on the day of formation. (Example of statement of financial position attached) PART C continued Prepare a journal entry to share the profit among the partners. (Transfer to Current accounts). Include a narration. Prepare journal entries to close the Drawings accounts to the partners’ Current accounts. Include a single narration. Prepare a statement of comprehensive income, showing allocation of profit. Prepare a statement of changes in equity. Prepare a partnership statement of financial position. (Statement format). PART D You can choose whether to admit a new partner or have a partner retire. Include a narrative as described below. Admission of a new partner Include in the narrative: Who is the new partner? What was he/she doing before? Why was he/she invited to join the partnership? How much is the new partner contributing and what will be his or her share of partnership equity? What is the new profit sharing agreement? What was the equity of the partnership before admission of…

Attachments:

Partnerships ….docx

bulldog appliances uses the periodic inventory system details regarding the inventor 439394

Aug 29, 2021 | Uncategorized

Bulldog Appliances uses the periodic inventory system. Details regarding the inventory of appliances at September 1, 2011, purchases invoices during the next 12 months, and the inventory count at August 31, 2012, are summarized as follows:

1. Determine the cost of the inventory on August 31, 2012, by the first in, first out method.If the inventory of a particular model comprises one entire purchase plus a portion of another purchase acquired at a different unit cost, use a separate line for each purchase. Under FIFO, if a model is in inventory at more than one unit cost, enter the unit cost of the 3rd purchase first in the Unit Cost column.Bulldog AppliancesCost of the InventoryAugust 31, 2012Model Quantity Unit Cost Total CostAZ09 $ $ AZ09 GA85 GA85 HI71 KS32 MS17 ND52 ND52 WV63 WV63 Total $ 2. Determine the cost of the inventory on August 31, 2012, by the last in, first out method.If the inventory of a particular model comprises one entire purchase plus a portion of another purchase acquired at a different unit cost, use a separate line for each purchase.Bulldog AppliancesCost of the InventoryAugust 31, 2012Model Quantity Unit Cost Total CostAZ09 $ $ AZ09 GA85 HI71 HI71 KS32 KS32 MS17 MS17 ND52 ND52 ND52 WV63 WV63 Total $ 3. Determine the cost of the inventory on August 31, 2012, by the average cost method.Bulldog AppliancesCost of the InventoryAugust 31, 2012Model Quantity Unit Cost Total CostAZ09 $ $ GA85 HI71 KS32 MS17 ND52 WV63 Total $ 4. Discuss which method (FIFO or LIFO) would be preferred for income tax purposes in periods of (a) rising prices and (b) declining prices.

to prepare for this application assignment review the financial data for eleanor s c 439773

Aug 29, 2021 | Uncategorized

To preparefor this Application Assignment, review the financial data for Eleanor’s Computers, a retailer of computer products, provided in Chapter 5 of your course text (p. 238). Then complete the financial ratio calculations for 2013.

To completethis Application Assignment,
write a 1 to 2 page paperadvising management of any ratios that indicate potential problems and provide an explanation of possible causes of the problems.

Attachments:

photo.JPG

kimm company has gathered the following information about its product direct materia 439861

Aug 29, 2021 | Uncategorized

Kimm Company has gathered the following information about its product.

Direct materials. Each unit of product contains4.40pounds of materials. The average waste and spoilage per unit produced under normal conditions is0.50pounds. Materials cost $4per pound, but Kimm always takes the4.94% cash discount all of its suppliers offer. Freight costs average $0.26per pound.

Direct labor. Each unit requires1.20hours of labor. Setup, cleanup, and downtime average0.23hours per unit. The average hourly pay rate of Kimm’s employees is $13.40. Payroll taxes and fringe benefits are an additional $3.30per hour.

Manufacturing overhead. Overhead is applied at a rate of $7.20per direct labor hour.

Compute Kimm’s total standard cost per unit.

big fish international bf11 has operations in several countries 440184

Aug 29, 2021 | Uncategorized

Big Fish International (BF11 has operations in several countries around the world. One of BFI’t. foreign subsidiaries. Little Trout Ltd. fL7L). provides the fol io…ins income statement covering its operations for the most recent year. h is stated in Pmaros (P). LTL’s local currency.

Sales revenue Cost of goods soh) Gross pupa( . Selling and athninisustive expenses Interest expense Premx income Inoune. lax expense Net income

P630.000 (319.000) P311.000 t234.0Gfq (15.1:00) P60.000 (34.0t:nq P26.00

P030 coo, C 311, 000) ?sit, 000 C2 004= _c is, 000)0 P‘o co 000) Paco, 00.0

You wish to prepare a performance report of LTL’s manager. reflecting those as pects under her control. Some of BR’s activities are coordinated across counties, and some inactions are centrally managed at BFI headquarters. You learn the fol lowing additional information: I. Financing decisions and tax planning are centralized at corporate headquarters. Each subsidiary is allocated a portion of BFI’s overall interest expense. 2. Similarly. each subsidiary L. charged an administrative fee for its “fair share” of BFI’s corporate overhead. LTL’s charge of P28.000 is included in selling and administrative expenses. C Pl3)C>0) 3. Included in LTL’s sales revenue is P120.000 worth of items sold to another of BFI’s subsidiaries. BR instructed UM to invoice the sale at 25 percent below market prices. 4. Local labor laws in LTL’s country require overtime payments when employees work more than 32 hours per week. Overtime charges amounting to P31,000 arc included in selling and administrative expenses.

Question 1. Which items are relevant in evaluating the performance of LTL’s manager? 2. Prepare a performance report for the manager of LTL. 3. How does your performanee report change if you are evaluating LTL as a sub sidiary operating unit of BR?

LP Z8, 000

Attachments:

Question 1.pdf

accounting theory assignment discuss the fasb s standard setting process 441275

Aug 29, 2021 | Uncategorized

Please read both attached files and then answer the following questions:

1.Discuss the FASB’s standard setting process. You should summarize what the article discussed for the process, and then should provide your opinions

2.What is XBRL? Please discuss for the SEC’s position on the adoption of XBRL

3.Please discuss the roles of DCF in SEC

For question 1, one full page single space

for question 2 and 3, One full page single space

Attachments:

xid 27021352 ….pdf

xid 27021348 ….pdf

if the perpetual inventory record is kept in dollars and costs are computed at the t 442041

Aug 29, 2021 | Uncategorized

q4 mahugh company which has only one product has provided the following data concern 442115

Aug 29, 2021 | Uncategorized

Assignment #1 • There are 4 questions (below) that cover material from Units #1, #2 and #3. • You are required to prepare and/or complete and then submit the appropriate financial statements. • 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. ________________________________________ 1. Delta Manufacturing Company has two Service Departments—Custodial Services and Maintenance—and three Production Departments—Cutting, Milling, and Assembly. Delta allocates the cost of Custodial Services on the basis of square metres and Maintenance on the basis of labour hours. Budgeted operating data for the year just completed follow: Required: a) Prepare a schedule to allocate Service Department costs to the Production Departments by the direct method, rounding all dollar amounts to the nearest whole dollar. (5 marks) b) Prepare a schedule to allocate Service Department costs to the Production Departments by the step down method, allocating Custodial Services first, and rounding all amounts to the nearest whole dollar. (5Marks) ________________________________________ 2. Mateo Company’s average cost per unit is $1.425 at the 16,000 unit level of activity and $1.38 at the 20,000 unit level of activity.Note: you need to calculate a total cost Assume that all of the activity levels mentioned in this problem are within the relevant range. Required: Predict the following items for Mateo Company: a) Variable cost per unit. (4 marks) b) Total fixed cost per period. (4 marks) c) Total expected costs at the 18,000 unit level of activity. (2 marks) ________________________________________ 3. The 4 x 4 Shop is a large retailer of equipment for pickup trucks. An income statement for the company’s Bed Liner Department for the most recent quarter is presented below: The liners sell, on average, for $350 each. The department’s variable selling expenses are $35 per liner sold. The remaining selling expenses are fixed. The administrative expenses are 25% variable and 75% fixed. The company purchases its liners from a supplier at a cost of $125 per liner. Required: Prepare an income statement for the quarter, using the contribution approach. (10 Marks) ________________________________________ Q4.) Mahugh Company, which has only one product, has provided the following data concerning its most recent month of operations: For you to answer: a) What is the unit product cost for the month under variable costing? (4 marks) b) What is the unit product cost for the month under absorption costing? (4 marks) c) Prepare an income statement for the month using the contribution format and the variable costing method. (4 marks) d) Prepare an income statement for the month using the absorption costing method. (4 marks) e) Reconcile the variable costing and absorption costing operating incomes for the month. (4 marks)

Attachments:

Assignment.docx

can this be done 280583

Aug 29, 2021 | Uncategorized

I want to know when this can be done by.

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UNIVERSITY OF BOLTON Faculty of Well Being and Social Sciences Business Management Programme Module Name and number: Financial Decision Making for Business Managers [BAM 2001] Tutors: Paul Bridge, Carl Bridge, Terry Elliot Assignment Number: One (S2, 2012 13) Assignment weighting: 50% Assignment Title: Diverse Management Consultants Assignment Length 2,500 words (or equivalent calculations) Issue Date: Week 3, in tutorial Submission Deadline: Week 9 (Programme Office by Friday 5pm) and copy into TurnitinUK via the link in Moodle Learning Outcomes This assessment satisfies the following learning outcomes as specified in your module guide. No.?Learning Outcomes?Assessment Criteria??1?Explain the principles of short term decision making including identification of relevant cash flows.?Explain the issues that arise in pricing decisions and the conflict between marginal costing and full cost recovery.?Appraise the usefulness of dividing costs into fixed and variable components when looking at break even analysis and constraint problems in a business ?be able to apply management accounting techniques to a variety of problems ??2?Explain the processes involved in making long term decisions.?Calculate project cash flows using investment appraisal techniques.?Compare, Contrast and evaluate the alternative techniques of investment appraisal.?be able to apply management accounting techniques to a variety of problems?? Please submit this form with the completed assessment. Ensure that each page of your piece of assessed work bears your student identification number, but not your name. I declare this submission to be my own work. Signed (student name)………………………………………………. Date……………………………………………………………………. Grade Description Mark Classification Work of Exceptional…

Attachments:

BAM 2001 BAM ….doc

uncertain 280663

Aug 29, 2021 | Uncategorized

I have a my answers but a little uncertain and wanted clarity

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1.___ A customer ordered 12 boxes of your product (total of 144 items) express shipment. Your data entry clerk inadvertently entered 12 individual items. 2. ___You enter sales and accounts receivable data in batches at the end of each week. Several problems have resulted recently as a result of recording invoices to the wrong customer account. 3.___In an effort to boost sales, you obtain some of the stock of unissued shipping reports and create a dozen fictitious shipments. You submit these documents to the billing department for invoicing. 4.___Checks are received by the mailroom and then forwarded to the accounts receivable department for recording. The accounts receivable clerk holds the checks until the proper customer account has been identified and reconciled. 5.___Several shipping reports have been misplaced en route to the billing department from the shipping department. 6.___Several sales transactions were not invoiced within the same month as the related shipment. 7.___A sales clerk entered a non existent date in the computer system. The system rejected the data and the sales were not recorded. 8.___Upon entering sales orders in your new computer system, a sales clerk mistakenly omitted customer numbers from the entries. 9.___A computer programmer altered the electronic credit authorization function for a customer company owned by the programmer’s cousin. 10.___Customer orders were lost in the mail en route from the sales office to the accounting department (located at the company’s headquarters). Required: Select one internal control from the following list that would be most effective in the prevention of the failure. Indicate the letter of the control next to each failure above. Letters should not be used more than once and some letters may not be used at all. Pre formatted data entry screens Pre numbered documents Programmed edit checks 100% check for matching of customer orders and sales orders 100% check for matching of sales orders,…

Attachments:

AccInfoSys.doc

wigs plus company supplies wigs and hair care products to 280733

Aug 29, 2021 | Uncategorized

Wigs Plus Company supplies wigs and hair care products to beauty salons throughout California and the Pacific Northwest. The accounts receivable clerk for Wigs Plus prepared the following aging of receivables schedule as of the end of business on December 31, 2010:

?

Wigs Plus Company has a past history of uncollectible accounts by age category, as follows:

Percent

Age ClassUncollectible

Not past due…………………………….. 2%

1–30 days past due……………………… 4

31–60 days past due……………………..10

61–90 days past due……………………. 15

91–120 days past due…………………… 35

Over 120 days past due………………… 80

Instructions

1. Estimate the allowance for doubtful accounts, based on the aging of receivables schedule.

2. Assume that the allowance for doubtful accounts for Wigs Plus Company has a negative balance of _$1,710 before adjustment on December 31, 2010. Illustrate the effect on the accounts and financial statements of the adjustment for uncollectible accounts.

3. Wigs Plus Company reported credit sales of $4,000,000 during 2010. Assume that instead of using the analysis of receivables method of estimating uncollectible accounts, Wigs Plus Company uses the percent of sales method and estimates that 1.75% of sales will be uncollectible. Illustrate the effect on the accounts and financial statements of the adjustment for uncollectible accounts using the percent of sales method.

4. Assume that on February 10, 2011, Wigs Plus wrote off the $3,500 account of Lasting Images as uncollectible. Illustrate the effect on the accounts and financial statements of the write off of the Lasting Images account.

5. Assume that on May 17, 2011, Lasting Images paid $3,500 on its account. Illustrate the effect on the accounts and financial statements of reinstating and collecting the Lasting Images account.

6. Assume that instead of using the allowance method, Wigs Plus uses the direct write off method. Illustrate the effect on the accounts and financial statements of the following:

a. The write off of the Lasting Images account on February 10, 2011.

b. The reinstatement and collection of the Lasting Images account on May 17, 2011.

7. Does Amazon.com use the direct write off or allowance method of accounting for uncollectible accounts receivable?Explain.

answer the following questions using appropriate business prose a what is the compan 280745

Aug 29, 2021 | Uncategorized

Analysis and Audit Plan

Spring 2013

(Mohawk Industries)

The objectives of this project are as follows:

1. To acquaint students with the annual report and Form 10 K of a publicly held company audited by a CPA firm.

2. To provide data for the practical application of different steps in the audit process.

3. To allow students to experience writing as is done in an actual business/audit setting.

Logistics:

1. The final paper should be professionally presented in a report binder.

2. Double space the paper

3. Use Times Roman 12 font

4. There is not a required length. However, most papers generally run about 8 pages in length. The paper should not exceed 10 pages.

Detailed Instructions:

1. Obtain a copy of a recent annual report of your assigned publicly held company (Mohawk Industries) with stock actively traded on the New York, NASDAQ or other over the counter exchanges. Each student will have a company from the list provided by the instructor.
2. Answer the following questions using appropriate business prose, i.e., answer the questions in the body of the report. Do not simply list the question and the corresponding answer.

a. What is the company’s industry?

b. What are its primary products?

c. What raw materials does the company use?

d. How large is the company:

• Sales
• Assets
• Employees

e. Where is the company located?

f. What other people/companies are closely associated with this company?

g. Look at the annual report:

• What image does it intend to convey?
• What are the segments and functional contents of the report?

3. Obtain a copy of the Company’s 10 K report for the same date as the annual report. Answer the following questions:

a. How does the 10 K differ from the annual report?

b. Supplement the answers to the questions under 2 as appropriate.

4. Obtain outside information about the company and its industry. Answer the following questions:

a. What are the key economic factors about the industry?

b. Where is the company in its life cycle?

c. What are the five or six most important factors for success in this business?

d. How does this company stand with respect to these factors?

e. Describe four or five key business risks related to the client’s business and industry.

f. What notable accounting considerations are there for companies in this industry?

g. What legal or regulatory matters are of concern?

h. What social matters are of concern?

5. Analyze the company’s financial strength:

a. Assess the financial strength of the company?

b. How is the financial strength likely to change in the next year or so?

c. What are its sources of capital and what is the value of the company’s capital?

d. How have the capital markets responded to the company in the last year?

e. What is the quality of earnings?

f. How does the company compare with others in the industry?

6. Prepare a broad audit plan:

a. What material types of transactions and transaction cycles are involved?

b. What are the high risk areas?

c. What are the low risk areas?

d. If management faced tremendous pressure regarding the entity’s financial performance, what opportunities might exist for them to engage in fraudulent financial reporting?

e. To what extent do you believe it will be appropriate to reduce assessed control risk?

f. How will audit effort be allocated among geographical areas?

g. What form of auditors’ report do you expect will be issued; what does it mean?

Attachments:

Term Paper In….docx

write the letter of the method that is most applicable 280748

Aug 29, 2021 | Uncategorized

Write the letter of the method that is most applicable to each statement.

a. Specific identification

b. Average cost

c. First in, first out (FIFO)

d. Last in, first out (LIFO)

____________ 1. Is the most realistic ending inventory

____________ 2. Results in cost of goods sold being closest to current product costs

____________ 3. Results in highest income during periods of inflation

____________ 4. Results in highest ending inventory during periods of inflation

____________ 5. Smooths out costs during periods of inflation

____________ 6. Is not practical for most businesses

____________ 7. Puts more weight on the cost of the larger number of units purchased

____________ 8. Is an assumption that most closely reflects the physical flow of goods for most businesses

____________ 9. Is not an acceptable method under IFRS

you are the controller of a rapidly growing mass merchandiser 280773

Aug 29, 2021 | Uncategorized

You are the controller of a rapidly growing mass merchandiser. The company uses a periodic inventory system. As the company has grown and accounting systems have developed, errors have occurred in both the physical count of inventory and the valuation of inventory on the balance sheet. You have been able to identify the following errors as of December 2010:

In 2008, one of the retail sections was omitted from the physical count of inventory. The error resulted in inventory being understated on December 31, 2008, by approximately $28,700.

In 2008, one section of the warehouse was counted twice. The error resulted in inventory being overstated on December 31, 2008, by approximately $45,600.

In 2009, the replacement cost of some inventory was less than the FIFO value used ?c on the balance sheet. The inventory would have been $6,000 less on the balance sheet dated December 31, 2009.

Required

What, if anything, should you do to correct each of these errors? Explain your answers.

you have been hired as the accountant for christman company 280784

Aug 29, 2021 | Uncategorized

You have been hired as the accountant for Christman Company, which uses the periodic inventory method. In reviewing the firm’s records, you have noted what you think are several accounting errors made during the current year, 2012. These potential mistakes are listed as follows:

a. A $51,000 purchase of merchandise was properly recorded in the purchases account, but the related accounts payable account was credited for only $4,000.

b. A $4,400 shipment of merchandise received just before the end of the year was properly recorded in the purchases account but was not physically counted in the inventory and, hence, was excluded from the ending inventory balance.

c. A $5,600 purchase of merchandise was erroneously recorded as a $6,500 purchase.

d. A $1,200 purchase of merchandise was not recorded either as a purchase or as an account payable.

e. During the year, $3,100 of defective merchandise was sent back to a supplier. The original purchase had been recorded, but the merchandise return entry was not recorded.

f. During the physical inventory count, inventory that cost $800 was counted twice.

Required:

1. If the previous accountant had tentatively computed the 2012 gross margin to be $25,000, what would be the correct gross margin for the year?

2. If these mistakes are not corrected, by how much will the 2013 net income be in error?

you have the following information for gas saver plus gas 280795

Aug 29, 2021 | Uncategorized

You have the following information for Gas Saver Plus. Gas Saver Plus uses the periodic method of accounting for its inventory transactions.

March 1 Beginning inventory 1,500 litres at a cost of 40?c per litre.

March 3 Purchased 2,000 litres at a cost of 45?c per litre.

March 5 Sold 1,800 litres for 60?c per litre.

March 10 Purchased 3,500 litres at a cost of 49?c per litre.

March 20 Purchased 2,000 litres at a cost of 55?c per litre.

March 30 Sold 5,000 litres for 70?c per litre.

Instructions

(a) Prepare partial income statements through gross profit, and calculate the value of ending inventory that would be reported on the balance sheet, under each of the following cost flow assumptions.

(1) Specific identification method assuming:

(i) The March 5 sale consisted of 900 litres from the March 1 beginning inventory and 900 litres from the March 3 purchase; and

(ii) The March 30 sale consisted of the following number of units sold from each purchase: 400 litres from March 1; 500 litres from March 3; 2,600 litres from March 10; 1,500 litres from March 20.

(2) FIFO.

(3) LIFO.

(b) How can companies use a cost flow method to justify price increases? Which cost flow method would best support an argument to increase prices?

1 the costs of a job are accounted for on 280834

Aug 29, 2021 | Uncategorized

1. The costs of a job are accounted for on the

a. Materials requisition sheet.

b. Time ticket.

c. Requisition for overhead application.

d. Job order cost sheet.

e. Sales invoice.

2. Wilson Company has a predetermined overhead rate of $5 per direct labor hour. The job order cost sheet for Job 145 shows 1,000 direct labor hours costing $10,000 and materials requisitions totaling $7,500. Job 145 had 500 units completed and transferred to Finished Goods. What is the cost per unit for Job 145?

a. $35

b. $135

c. $30

d. $45

e. $22,500

3. When a job costing $2,000 is finished but not sold, the following journal entry is made: (Appendix 5A)

a. Cost of Goods Sold 2,000

Finished Goods 2,000

b. Finished Goods 2,000

Cost of Goods Sold 2,000

c. Finished Goods 2,000

Work in Process 2,000

d. Work in Process 2,000

Finished Goods 2,000

e. Cost of Goods Sold 2,000

Sales 2,000

4. Those departments responsible for creating products or services that are sold to customers are referred to as (Appendix 5B)

a. Profit making departments.

b. Support departments.

c. Cost centers.

d. Production departments.

e. None of the above.

5. Those departments that provide essential services to producing departments are referred to as (Appendix 5B)

a. Revenue generating departments.

b. Support departments.

c. Profit centers.

d. Production departments.

e. None of the above.

6. An example of a producing department is (Appendix 5B)

a. A materials storeroom.

b. The maintenance department.

c. Engineering design.

d. Assembly.

e. All of the above.

7. An example of a support department is (Appendix 5B)

a. Data processing.

b. Personnel.

c. A materials storeroom.

d. Payroll.

e. All of the above.

8. The method that assigns support department costs only to producing departments in proportion to each department’s usage of the service is known as (Appendix 5B)

a. The sequential method.

b. The proportional method.

c. The reciprocal method.

d. The direct method.

e. None of the above.

9. The method that assigns support department costs by giving partial recognition to support department interactions is known as (Appendix 5B)

a. The sequential method.

b. The proportional method.

c. The reciprocal method.

d. The direct method.

e. None of the above.

10. The method that assigns support department costs by giving full recognition to support department interactions is known as (Appendix 5B)

a. The sequential method.

b. The proportional method.

c. The reciprocal method.

d. The direct method.

e. None of the above.

alston corporation makes rocking chairs the chairs move through 280874

Aug 29, 2021 | Uncategorized

Alston Corporation makes rocking chairs. The chairs move through two departments during production. Lumber is cut into chair parts in the cutting department, which transfers the parts to the assembly department for completion. The company sells the unfinished chairs to hobby shops. The following transactions apply to Alston’s operations for its first year, 2011. (Assume that all transactions are for cash unless otherwise stated.)

1. The company was started when it acquired a $100,000 cash contribution from the owners.

2. The company purchased $30,000 of direct raw materials and $800 of indirect materials. Indirect materials are capitalized in the Production Supplies account.

3. Direct materials totaling $12,000 were issued to the cutting department.

4. Labor cost was $56,400. Direct labor for the cutting and assembly departments was $20,000 and $26,000, respectively. Indirect labor costs were $10,400.

5. The predetermined overhead rate was $0.50 per direct labor dollar in each department.

6. Actual overhead costs other than indirect materials and indirect labor were $12,800 for the year.

7. The cutting department transferred $24,000 of inventory to the assembly department.

8. The assembly department transferred $40,000 of inventory to finished goods.

9. The company sold inventory costing $36,000 for $60,000.

10. Selling and administrative expenses were $6,000.

11. A physical count revealed $200 of production supplies on hand at the end of 2011.

12. Assume that over or underapplied overhead is insignificant.

Required

a. Record the data in T accounts.

b. Record the closing entry for over or underapplied manufacturing overhead, assuming that the amount is insignificant.

c. Close the revenue and expense accounts.

d. Prepare a schedule of cost of goods manufactured and sold, an income statement, and a balance sheet for 2011.

an accounting professional requires at least two skill sets the 280881

Aug 29, 2021 | Uncategorized

An accounting professional requires at least two skill sets. The first is to be technically competent. Knowing how to capture, manage, and report information is a necessary skill. Second, the ability to assess manager and employee actions and biases for accounting analysis is another skill. For instance, knowing how a person is compensated helps anticipate information biases. Draw on these skills and write a one half page memo to the financial officer on the following practice of allocating overhead. Background: Assume that your company sells portable housing to both general contractors and the government. It sells jobs to contractors on a bid basis. A contractor asks for three bids from different manufacturers.

The combination of low bid and high quality wins the job. However, jobs sold to the government are bid on a cost plus basis. This means price is determined by adding all costs plus a profit based on cost at a specified percent, such as 10%. You observe that the amount of overhead allocated to government jobs is higher than that allocated to contract jobs. These allocations concern you and motivate your memo.

anselmo s kwik print provides a variety of photocopying and prin 280886

Aug 29, 2021 | Uncategorized

Anselmo’s Kwik Print provides a variety of photocopying and printing services. On June 5, Anselmo invested in some computer aided photography equipment that enables customers to reproduce a picture or illustration, input it digitally into the computer, enter text into the computer, and then print out a four color professional quality brochure. Prior to the purchase of this equipment, Kwik Print’s overhead averaged $35,000 per year. After the installation of the new equipment, the total overhead increased to $85,000 per year. Kwik Print has always costed jobs on the basis of actual materials and labor plus overhead assigned using a predetermined overhead rate based on direct labor hours. Budgeted direct labor hours for the year are 5,000, and the wage rate is $6 per hour.

Required:

1. What was the predetermined overhead rate prior to the purchase of the new equipment?

2. What was the predetermined overhead rate after the new equipment was purchased?

3. Suppose Kevin Bess brought in several items he wanted photocopied. The job required 100 sheets of paper at $0.015 each and 12 minutes of direct labor time. What would have been the cost of Kevin’s job on May 20? On June 20?

4. Suppose that Anselmo decides to calculate two overhead rates, one for the photocopying area based on direct labor hours as before, and one for the computeraided printing area based on machine time. Estimated overhead applicable to the computer aided printing area is $50,000, and forecasted usage of the machines is 2,000 hours. What are the two overhead rates? Which overhead rate system is better—one rate or two?

what are financial accounting management accounting and finance what are their simil 280391

Aug 29, 2021 | Uncategorized

DQ1. What are financial accounting, management accounting, and finance? What are their similarities and differences? (Chapter 1) Accounting can be defined as a systematic recording, reporting and analysis of transaction which has a monetary value in the books. There are many accounting standards which are issued by organization of repute and which are mandatorily required to be followed while preparing the books of accounts. Accounting in general is divided mainly into two main types: these are financial accounting and also cost accounting, which is a part of managerial accounting.

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DQ1. What are financial accounting, management accounting, and finance? What are their similarities and differences? (Chapter 1) Accounting can be defined as a systematic recording, reporting and analysis of transaction which has a monetary value in the books. There are many accounting standards which are issued by organization of repute and which are mandatorily required to be followed while preparing the books of accounts. Accounting in general is divided mainly into two main types: these are financial accounting and also cost accounting, which is a part of managerial accounting. Financial accounting is mainly for external purposes and consists of recording financial transactions according to generally accepted accounting principles, or GAAP and is prepared for the stakeholders of the organization. Managerial accounting is used internally for improving the company’s performance. While these two types of accounting are different in many aspects, they share several similarities. Financial Accounting The process of recording, summarizing and reporting the innumerable transactions from a business, so as to provide an accurate picture of its financial position and performance during a particular period of time. Importantly , the main objective of financial accounting is for the preparation of financial statements which includes the balance sheet, income statement and cash flow statement, statement of equity that encapsulates the company’s performance over a particular period, and financial position at a specific point in time. These statements which are generally prepared quarterly and annually, and in accordance with Generally Accepted Accounting Principles (GAAP) are aimed at external parties including investors, creditors, regulators and tax authorities Managerial Accounting It can be defined as a process of identifying, recording, measuring, analyzing, interpreting, and communicating information for the quest of an organization’s goals. …

Attachments:

Acconts.docx

this problem continues the draper consulting situation from 5 4 280404

Aug 29, 2021 | Uncategorized

This problem continues the Draper Consulting, Inc., situation from Problem 5 43 in Chapter 5. Consider the January transactions for Draper Consulting that were presented in Chapter 5. (Cost data has been removed from the sale transactions.)

Jan 2 Completed a consulting engagement and received cash of $7,800.

2 Prepaid three months’ office rent, $1,650.

7 Purchased 80 units software inventory on account, $1,680, plus freight in, $80.

18 Sold 40 software units on account, $3,500.

19 Consulted with a client for a fee of $1,000 on account.

20 Paid employee salary, $2,055.

21 Paid on account, $1,760.

22 Purchased 240 units software inventory on account, $6,240.

24 Paid utilities, $250.

28 Sold 120 units of software for cash, $4,680.

31 Recorded the following adjusting entries:

Accrued salary expense, $685.

Depreciation, $100 (Equipment, $30; Furniture, $70).

Expiration of prepaid rent, $550.

Physical count of inventory, 145 units.

Requirements

1. Prepare perpetual inventory records for January for Draper using the LIFO perpetual method. (Note: You must figure cost on the 18th, 28th, and 31st.)

2. Journalize and post the January transactions using the perpetual inventory record created in requirement 1. Key all items by date. Compute each account balance, and denote the balance as Bal.

3. Journalize and post the adjusting entries. Denote each adjusting amount as Adj. After posting all adjusting entries, prove the equality of debits and credits in the ledger.

at a recent meeting one of your coworkers stated that 280413

Aug 29, 2021 | Uncategorized

1Page

At a recent meeting, one of your coworkers stated that “Using the right analysis tool will compensate for inexperienced managers.”

How would you reply to your coworker? Consider the following itemsin your discussion:

1. Do the tools help only in certain situations such as routine, daily or rather mundane decisions, like cost controls, quality controls or staffing questions (in term of number of people needed)?
2. How can analysis tools help the finance or accounting arms of a company more so than operations managers? (For example, do computers really think? Do they learn from their mistakes? Can they manipulate or change their environment?)
3. What happens if the data entered is wrong?
4. Respond to another students’ post.
5. If needed, cite references in APA format.

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1Page At a recent meeting, one of your coworkers stated that “Using the right analysis tool will compensate for inexperienced managers.” ??How would you reply to your coworker? Consider the following items in your discussion: Do the tools help only in certain situations such as routine, daily or rather mundane decisions, like cost controls, quality controls or staffing questions (in term of number of people needed)? How can analysis tools help the finance or accounting arms of a company more so than operations managers? (For example, do computers really think? Do they learn from their mistakes? Can they manipulate or change their environment?) What happens if the data entered is wrong? Respond to another students’ post. If needed, cite references in APA format.

Attachments:

Unit5 Princip….docx

tom landry owns a construction business landry supply co the 280423

Aug 29, 2021 | Uncategorized

Tom Landry owns a construction business, Landry Supply Co. The following cash information is available for the month of October 2012. As of October 31, the bank statement shows a balance of $13,800. The October 31 unadjusted balance in the Cash account of Landry Supply Co. is $12,700. A review of the bank statement revealed the following information.

1. A deposit of $1,600 on October 31, 2012, does not appear on the October 31 bank statement.

2. A debit memo for $250 was included in the bank statement for the purchase of a new supply of checks.

3. When checks written during the month were compared with those paid by the bank, three checks amounting to $4,450 were found to be outstanding.

4. It was discovered that a check to pay for repairs was correctly written and paid by the bank for $3,100 but was recorded on the books as $1,600.

Required

Prepare a bank reconciliation at the end of October showing the true cash balance.

two wheeler a bike shop opened for business on april 280436

Aug 29, 2021 | Uncategorized

Two Wheeler, a bike shop, opened for business on April 1. It uses a periodic inventory system. The following transactions occurred during the first month of business:

April 1: Purchased five units from Duhan Co. for $500 total, with terms 3/10, n/30, FOB destination.

April 10: Paid for the April 1 purchase.

April 15: Sold one unit for $200 cash.

April 18: Purchased ten units from Clinton Inc. for $900 total, with terms 3/10, n/30, FOB destination.

April 25: Sold three units for $200 each, cash.

April 28: Paid for the April 18 purchase.

Required

1. Identify and analyze each of the preceding transactions of Two Wheeler.

2. Determine net income for the month of April. Two Wheeler incurred and paid $100 for rent and $50 for miscellaneous expenses during April. Ending inventory is $967. (Ignore income taxes.)

3. Assuming that these are the only transactions during April (including rent and miscellaneous expenses), compute net cash flow from operating activities.

4. Explain why cash outflow is so much larger than expenses on the income statement.

you have just been assigned to manage the audit for a new large client of your firm 280449

Aug 29, 2021 | Uncategorized

You have just been assigned to manage the audit for a new large client of your firm, Cheap Music Downloads Inc. (CMD). CMD is a subsidiary of a client of your firm that manufactures audio and video equipment for international distribution. CMD has been in operation for two years, when its custom information systems were established. CMD runs a web site that allows customers to order songs using their credit card only. There are tens of thousands of small transactions daily. Once the credit card has been authorized by the credit card processing intermediary, CMD’s web sales system generates a 16 digit sequential code that the customer uses to access the song via the web site. CMD will then record both the sale and the royalty for the song. Quarterly, CMD remits royalties to artists based upon the number of copies of the song that has sold, if the accumulated royalty exceeds $25.00 for that artist. Artist royalties that do not exceed $25.00 will be paid every two years if there has not been a payment during that time. All contracted royalty rates, artist names and song titles are recorded in CMD’s database tables. Some of the content of the database tables is listed below: Sales Transaction Table Song Master Table Royalty Transaction Table Customer name Song code Song code 16 digit sales code Song title 16 digit sales code Transaction date Sales price Transaction date Amount Royalty rate Royalty amount Song code purchased Artist code 2 AP/ADMS 4552 Winter 2013, Hand in Case # 3: Cheap Music Downloads Inc. Required: (18 marks) A. Describe four computer assisted audit tests (CAATs) that you could run using generalized audit software (such as ACL) in order to audit royalty expenses. For each test, describe the audit assertion associated with the test. (6 marks, 1 mark for CAAT, ½ mark for assertion) No marks for cash disbursements or accounts payable tests. B. Describe three internal controls that should exist over sales or royalty transactions or over the database tables. For each control: (i) State the control (ii) Describe (not just state) the specific transaction related audit assertion associated with the control (or state the purpose of the control) (iii) Provide an audit test that you could use to test the control (9 marks) [Note that audit tests in column (iii) must be different from Part A to have marks awarded.] C. Use the concept of rotational testing to discuss whether (or not) you would be required to test specific automated controls at CMD this year. (3 marks) No marks for description of standards without application to case fact

Attachments:

HI Case 3 CMD….pdf

vaughn company which uses a periodic inventory system had a 280491

Aug 29, 2021 | Uncategorized

Vaughn Company, which uses a periodic inventory system, had a beginning inventory on May 1, of 400 units of Product A at a cost of $7 per unit. During May, the following purchases and sales were made.

Purchases Sales

May 6 375 units at $9 May 4 275 units

14 250 units at $10 8 300 units

21 300 units at $11 22 400 units

28 425 units at $13 24 225 units

1,350 1,200

Instructions:

Compute the May 31 ending inventory and May cost of goods sold under (a) Average Cost, (b) FIFO, and (c) LIFO. Provide appropriate supporting calculations.

(a) Average – Ending Inventory = $_________; Cost of Goods Sold = $_________.

(b) FIFO – Ending Inventory = $_________; Cost of Goods Sold = $_________.

(c) LIFO – Ending Inventory = $_________; Cost of Goods Sold = $_________.

current e p computation 437508

Aug 29, 2021 | Uncategorized

Water Corporation reports $500,000 of taxable income for the current year. The following additional information is available:

for the current year, Water reports an $80,000 long term capital loss and no capital gains.

Taxable income includes $80,000 of dividends from a 10% owned domestic corporation.

Water paid fines and penalties for $6,000 that were not deducted in computing taxable income.

in computing this year’s taxable income, Water deducted a $20,000 NOL carryover from a prior tax year.

Water claimed a $10,000 U.S. production activities deduction.

Taxable income includes a deduction for $40,000 of depreciation that exceeds the depreciation allowed fro E&P purposes.

Assume a 34% corporate tax rate. What is Water’s current E&P for this year?

financial accounting 437574

Aug 29, 2021 | Uncategorized

accounting 437588

Aug 29, 2021 | Uncategorized

accounting homework please help explain step by step 437616

Aug 29, 2021 | Uncategorized

Witchs brew company manufactures and sells three potions that all use gargoyle eyelashes as an Witch As an ingredient. The high demand for all three of these potions exceeds the supply of gargoyle eyelashes that witches brew is able to buy from its supplier. Information is as follows:

Beauty potion,: selling price $100, variable cost per bottle 70, Eyelashes required Per bottle 2, sales demand in units 1, 000.

Luck potion: selling price 120, vc per bottle 84, eyelashes required 3, sales demand in units 1, 500

Smart potion: selling price 200, vc per bottle 130, eyelashes 5, Sales demand 1800

A) how many eyelashes would be required to satisfy demand for all 3 products?

B) each year witches brew is only able to buy 14,000 gargoyle eyelashes. Using only the information above, basing the decision solely on maximizing net operating income, how many bottles, if any, of each potion should witches bre make?

C) a new supplier is found that has eyelashes available to sell. How many eyelashes would witches brew need to purchase? What is the maximum amount witches brew would be willing to pay per eyelash? Assume the normal cost of an eyelash is $10

net present value for 2 alternatives 437632

Aug 29, 2021 | Uncategorized

accounting 437653

Aug 29, 2021 | Uncategorized

Please show the work or you will get no ratings.

(Ignore income taxes in this problem.) The management of Rouleau Corporation is investigating automating a process. Old equipment, with a current salvage value of $10,000, would be replaced by a new machine. The new machine would be purchased for $240,000 and would have a 6 year useful life and no salvage value. By automating the process, the company would save $64,000 per year in cash operating costs. The simple rate of return on the investment is closest to:

managerial accounting 437658

Aug 29, 2021 | Uncategorized

******PLEASE SHOW WORK IF YOU WANT YOUR ANSWER RATED*** Thanks in advance!

1. A company’s gross profit rate is 30% of sales. Expected January sales are $78,000 and desired January 31^st inventory is $7,500. Assuming the December 31^st inventory is $6,200 what amount of purchases should this company budget for the month of January?

A)24,700

(B)55,900

(C)53,300

(D)22,100

(E)79,300

2. A company’s data is presented below. Desired ending inventory is a consistent percentage of the next quarter’s sales and the previous year’s 4th quarter ending inventory of 560 units meets this requirement. Compute the expected production in the 3rd Quarter of the current year.

Quarter: 1 2 3 4

Expected Sales Units: 7,000 5,000 8,000 6,000

Units Produced: 6,840 ? ? ?

(A)8,000

(B)7,360

(C)7,840

(D)8,480

(E)8,160

3. Lara Company has budgeted the following credit sales during the current year: September, $25,000; October, $36,000; November, $30,000; December, $32,000. Experience has shown that payment for the credit sales is received as follows: 15% in the month of sale, 60% in the first month after sale, 20% in the second month after sale, and 5% is uncollectible. How much cash can Lara Company expect to collect in November as a result of current and past credit sales

(A)$28,500

(B)$31,100

(C)$19,700

(D) $33,900

(E)$30,000

4. To determine the production budget for an accounting period, consideration is not given to which of the following:

(A) Budgeted beginning inventory

(B) Budgeted overhead

(C) budgeted sales

(D) Required units of inventory available

(E) Budgeted ending inventory

5.Lingstat Company is trying to decide how many units of merchandise to order each month. The company’s policy is to have 15% of the next month’s sales in inventory at the end of each month. Projected sales for August, September, and October are 5,000 units, 6,000 units, and 4,000 units, respectively. How many units must be purchased in September?

(A) 6,300 (B)5,700 (C)5,850 (D)6,600 (E)6,150

6.A Company is preparing a cash budget for June. The company has $67,000 cash at the beginning of June and anticipates $82,330 in cash receipts and $93,520 in cash disbursements during June. This company has an agreement with its bank to maintain a cash balance of at least $65,000. As of May 31, the company owes $25,000 to the bank. To maintain the $65,000 required balance, during June the company must:

(A) Repay $13,190

(B) borrow $25,000

(C) Borrow $9,190

(D) Repay $9,190

(E) Repay $25,000

management accounting 437679

Aug 29, 2021 | Uncategorized

SHOW WORKING

Flinders

Company has two service departments, Factory Administration and

Maintenance, and two operating departments. Selected information

relating to these departments is given below:

management accounting budgeting 437684

Aug 29, 2021 | Uncategorized

SHOW WORKING

SHOW WORKING

SHOW WORKING

Diskind Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During October, the company budgeted for 7,200 units, but its actual level of activity was 7,150 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October:

Data used in budgeting:

Actual results for October:

The revenue variance in October would be closest to:

accounting help 437716

Aug 29, 2021 | Uncategorized

Xu Company is considering replacing one of its manufacturing machines. The machine has a book value of $39,000 and a remaining useful life of 4 years, at which time its salvage value will be zero. It has a current market value of $49,000. Variable manufacturing costs are $33,200 per year for this machine. Information on two alternative replacement machines follows.

can t figure out steps please use my values so i can see steps 437793

Aug 29, 2021 | Uncategorized

Zoe Company Corporation manufactures a variety of liquid lawn fertilizers, including a very popular product called SuperFood. Data about SuperFood and XP, a major ingredient, follow.
Expected operations:

XP is purchased in 55 gallon drums at a cost of $65 per drum. A 2% cash discount is offered by XP’s manufacturer for prompt payment of invoices, and Vanderhaus takes advantage of all discounts offered.

Vanderhaus normally purchases 200 drums of XP at a time, paying shipping fees of $2,660 per shipment. Each gallon of SuperFood requires three quarts of XP; however, because of evaporation and spills, Zoe loses 4% of of all XP that enters production.
Actual operations:

For the period just ended, Zoe purchased 1,500 drums of XP at a total cost of $118,100, which reflects discounts and shipping. There was no beginning inventory, but an end of period inventory revealed that 30 drums were still on hand.

Manufacturing activity output totaled 104,000 gallons of SuperFood. Compute the material price standard

homework 437964

Aug 29, 2021 | Uncategorized

Your firm which has eight partners has been invited by Mr Smith, the managing director and majority shareholder of Battersby Co, to accept appointment as statutory auditor of the company. The present firm of auditors will not be re appointed when its term of expires.

The principal activity of Battersby Co is the manufacture and distribution of healthcare products. Your firm has several companies operating In the healthcare sector in its client portfolio.

Mr Smith has requested that your firm assists with the preparation of the company’s corporation tax computation, and provides consultancy services on and on going basis in connection with his plans to grow to the business. He has also suggested that a partner in your firm joins the board of Battersby Co as a non executive director.

Required

(a)Set out the matters, other than independence and objectivity, to be considered and the procedures to be performed in order to determine whether it is appropriate for your firm to accept appointment as statutory auditor of Battersby Co.

(b)Identify and explain the threats to independence and objectivity which may arise from the provision of the services requested by Mr Smith and state how these threats should be resolved.

Set out the benefits to audit firms and their clients of having audit and non audit services provided by the same firm of accountants

journal entries 438033

Aug 29, 2021 | Uncategorized

On June 30, 2004, Mendenhal Company issued 12% bonds with a par value of $622,100due in 20 years. They were issued at98and were callable at106at any date after June 30, 2012. Because of lower interest rates and a significant change in the company’s credit rating, it was decided to call the entire issue on June 30, 2013, and to issue new bonds. New10% bonds were sold in the amount of $824,800at102; they mature in 20 years. Mendenhal Company uses straight line amortization. Interest payment dates are December 31 and June 30.

jk w5 acc206 assignment 280348

Aug 29, 2021 | Uncategorized

See attached document. MUST answer all questions and all parts of each question.

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Chapter Eight Problems Please complete the following 5 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 8 Exercise 1: 1. Basic present value calculations Calculate the present value of the following cash flows, rounding to the nearest dollar: A single cash inflow of $12,000 in five years, discounted at a 12% rate of return. An annual receipt of $16,000 over the next 12 years, discounted at a 12% rate of return. A single receipt of $15,000 at the end of Year 1 followed by a single receipt of $10,000 at the end of Year 3. The company has a 10% rate of return. An annual receipt of $8,000 for three years followed by a single receipt of $10,000 at the end of Year 4. The company has a 12% rate of return. Chapter 8 Exercise 4: 4. Cash flow calculations and net present value On January 2, 20X1, Bruce Greene invested $10,000 in the stock market and purchased 500 shares of Heartland Development, Inc. Heartland paid cash dividends of $2.60 per share in 20X1 and 20X2; the dividend was raised to $3.10 per share in 20X3. On December 31, 20X3, Greene sold his holdings and generated proceeds of $13,000. Greene uses the net present value method and desires a 16% return on investments. Prepare a chronological list of the investment’s cash flows. Note: Greene is entitled to the 20X3 dividend. Compute the investment’s net present value, rounding calculations to the nearest dollar. Given the results of part (b), should Greene have acquired the Heartland stock? Briefly explain. Chapter 8 exercise 5: 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…

Attachments:

JK ACC206 Wee….docx

you ve just been hired onto abc company as the corporate controller 280354

Aug 29, 2021 | Uncategorized

You’ve just been hired onto ABC Company as the corporate controller. ABC Company is a manufacturing firm that specializes in making cedar roofing and siding shingles. The company currently has annual sales of around $1.2 million, a 25% increase from the previous year. The company has an aggressive growth target of reaching $3 million annual sales within the next 3 years. The CEO has been trying to find additional products that can leverage the current ABC employee skillset as well as the manufacturing facilities.

As the controller of ABC Company, the CEO has come to you with a new opportunity that he’s been working on. The CEO would like to use the some of the shingle scrap materials to build cedar dollhouses. While this new product line would add additional raw materials and be more time intensive to manufacture than the cedar shingles, this new product line will be able to leverage ABC’s existing manufacturing facilities as well as the current staff. Although this product line will require added expenses, it will provide additional revenue and gross profit to help reach the growth targets. The CEO is relying on you to help decide how this project can be afforded Provide details about the estimated product costs, what is needed to break even on the project, and what level of return this product is expected to provide.

In order to help out the CEO, you need to prepare a six to eight page report that will contain the following information (including exhibits, but excluding your references and title page). Refer to the accompanying Excel spreadsheet (available through your online course) for some specific cost and profit information to complete the calculations.

See attached for excel spreadsheet.

I. An overall risk profile of the company based on current economic and industry issues that it may be facing.

II. Current company cash flow

a. You need to complete a cash flow statement for the company using the direct method.

b. Once you’ve completed the cash flow statement, answer the following questions:

i. What does this statement of cash flow tell you about the sources and uses of the company?

ii. Is there anything ABC Company can do to improve the cash flow?

iii. Can this project be financed with current cash flow from the company? Why or why not?

iv. If the company needs additional financing beyond what ABC Company can provide internally (either now or sometime throughout the life of the project), how would you suggest the company obtain the additional financing, equity or corporate debt, and why?

III. Product cost: ABC Company believes that it has an additional 5,000 machine hours available in the current facility before it would need to expand. ABC Company uses machine hours to allocate the fixed factory overhead, and units sold to allocate the fixed sales expenses. ABC Company expects that it will take twice as long to produce the expansion product as it currently takes to produce its existing product.

a. What is the product cost for the expansion product?

b. By adding this new expansion product, it helps to absorb the fixed factory and sales expenses. How much cheaper does this expansion make the existing product?

c. Assuming ABC Company wants a 40% gross margin for the new product, what selling price should it set for the expansion product?

d. Assuming the same sales mix of these two products, what are the contribution margins and break even points by product?

IV. Potential investments to accelerate profit: ABC company has the option to purchase additional equipment that will cost about $42,000, and this new equipment will produce the following savings in factory overhead costs over the next five years:

Year 1, $15,000

Year 2, $13,000

Year 3, $10,000

Year 4, $10,000

Year 5, $6,000

ABC Company uses the net present value method to analyze investments and desires a minimum rate of return of 12% on the equipment.

a. What is the net present value of the proposed investment ignore income taxes and depreciation?

b. Assuming a 5 year straight line depreciation, how will this impact the factory’s fixed costs for each of the 5 years (and the implied product costs)? What about cash flow?

c. Considering the cash flow impact of the equipment as well as the time value of money, would you recommend that ABC Company purchases the equipment? Why or why not?

V. Conclusion:

a. What are the major risk factors that you see in this project?

b. As the controller and a management accountant, what is your responsibility to this project?

c. What do you recommend the CEO do?

Writing the Paper

1. Must be six to eight double spaced pages in length, and formatted according to APA style

3. Must begin with an introductory paragraph that has a succinct thesis statement.

4. Must address the topic of the paper with critical thought.

5. Must end with a conclusion that reaffirms your thesis.

6. Must document all sources in APA style

7. Must include a separate reference page, formatted according to APA style

Attachments:

W5 ACC206 PAP….docx

ACC206PAPER S….xlsx

the webster store shows the following information relating to on 280382

Aug 29, 2021 | Uncategorized

The Webster Store shows the following information relating to one of its products.

Inventory, January 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300 units @ $17.50

Sales, January 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200 units

Purchases, January 10 . . . . . . . . . . . . . . . . . . . . . . . . . . 900 units @ $18.00

Sales, January 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800 units

Purchases, January 20 . . . . . . . . . . . . . . . . . . . . . . . . . . 1,200 units @ $19.50

Sales, January 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000 units

What are the values of ending inventory under a periodic inventory system assuming a

(1) FIFO,

(2) LIFO

(3) Average cost flow? (Round unit costs to three decimal places.)

accounting 437440

Aug 29, 2021 | Uncategorized

Vernon company has been offered a 7 year contract to supply a part for the military. After careful study, the company has developed the following estimated data relating to the contract:

Cost of equipment needed $300,000

Working capital needed $50,000

Annual cash receipts from the delivery of parts,

Less cash operating costs $70,000

Salvage value of equipment at termination of the contract $5,000

It is not expected that the contract would be extended beyond the initial contract period. The company’s discount rate is 10%.

Required:

Use the net present value method to determine if the contract should be accepted. Round all computations to the nearest dollar. (Please show all your works!)

tax payer liability 437462

Aug 29, 2021 | Uncategorized

Wade paid $7,000 for an automobile that needed substantial repairs. He worked nights and weekends to restore the car and spent $2,400 on parts for it. He knows he can sell the car for $13,000. His daughter’s college tuition is due in a few days. Wade wonders if it matters, after taxes, whether he sells the car and pays the tuition or whether he gives the car to his daughter and she sells it for $13,000 and pays her tuition. What should Wade do?

Select “Yes” or “No” whichever is applicable.

a. Wade should give the car to his daughter to sell. She will not have to pay taxes on the subsequent sale of the car, since it was acquired as a gift.

b. Wade should give the car to his daughter to sell because, although she would have to pay taxes on the sale of the car, she is likely in a lower tax bracket, resulting in tax savings for the family unit.

c. Wade should sell the car. If Wade gives his daughter the car, he will have to pay gift tax as well as income tax, since his daughter is considered a related party.

d. Wade should sell the car, since his taxable gain will be less due to the time he spent restoring the car than if his daughter sells the car.

help 437483

Aug 29, 2021 | Uncategorized

The company did not dispose of any property, plant, and equipment during the year. Its net income for the year was $4,600. The net cash provided by operating activities is:

help 437504

Aug 29, 2021 | Uncategorized

story company s inventory records for the month of november reve 280159

Aug 29, 2021 | Uncategorized

Story Company’s inventory records for the month of November reveal the following:

Inventory, November 1 300 units @ $27.00

November 4, purchase 375 units @ $26.50

November 7, sale450 units @ $63.00

November 13, purchase 330 units @ $26.00

November 18, purchase 225 units @ $25.40

November 22, sale 570 units @ $63.75

November 24, purchase 300 units @ $25.00

November 28, sale 165 units @ $64.50

Selling and administrative expenses for the month were $16,200. Depreciation expense was $6,000. Story’s tax rate is 35%.

Required

1. Calculate the cost of goods sold and ending inventory under each of the following three methods assuming a periodic inventory system:

(a) FIFO,

(b) LIFO, and

(c) Weighted average.

2. Calculate the gross profit and net income under each costing assumption.

3. Under which costing method will Story pay the least taxes? Explain your answer.

stout company has gross sales of 250 of cost of 280160

Aug 29, 2021 | Uncategorized

Stout Company has gross sales of 250% of cost of goods sold. It has also provided the following information for the calendar year 2012:

Inventory balance, January 1, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 22,000

Total cost of goods available for sale . . . . . . . . . . . . . . . . . . . . . . . . . . . 84,000

Sales returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,200

Purchase returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000

Freight in . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800

Sales (net of returns) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169,800

Operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,500

Required:

Using the available information, compute the following. (Ignore income taxes.)

1. Gross sales for 2012

2. Net purchases and gross purchases for 2012

3. Cost of goods sold for 2012

4. Inventory balance at December 31, 2012

5. Gross margin for 2012

6. Net income for 2012

streuling inc is preparing its 2011 year end financial statemen 280161

Aug 29, 2021 | Uncategorized

Streuling Inc. is preparing its 2011 year end financial statements. Prior to any adjustments, inventory is valued at $76,050. The following information has been found relating to certain inventory transactions:

(a) Goods valued at $11,000 are on consignment with a customer. These goods are not included in the $76,050 inventory figure.

(b) Goods costing $2,700 were received from a vendor on January 5, 2012. The related invoice was received and recorded on January 12, 2012. The goods were shipped on December 31, 2011, terms FOB shipping point.

(c) Goods costing $8,500 were shipped on December 31, 2011, and were delivered to the customer on January 2, 2012. The terms of the invoice were FOB shipping point. The goods were included in ending inventory for 2011 even though the sale was recorded in 2011.

(d) A $3,500 shipment of goods to a customer on December 31, terms FOB destination, was not included in the year end inventory. The goods cost $2,600 and were delivered to the customer on January 8, 2012. The sale was properly recorded in 2012.

(e) An invoice for goods costing $3,500 was received and recorded as a purchase on December 31, 2011. The related goods, shipped FOB destination, were received on January 2, 2012, and thus were not included in the physical inventory.

(f) Goods valued at $6,500 are on consignment from a vendor. These goods are not included in the year end inventory figure.

(g) A $10,500 shipment of goods to a customer on December 30, 2011, terms FOB destination, was recorded as a sale in 2011. The goods, costing $8,200 and delivered to the customer on January 6, 2012, were not included in 2011 ending inventory.

Instructions:

1. Determine the appropriate accounting treatment for each of the preceding items. Justify your answers.

2. Compute the proper inventory amount to be reported on Streuling Inc.’s balance sheet for the year ended December 31, 2011.

3. By how much would net income have been misstated if no adjustments were made for the above transactions? Ignore income taxes.

the beginning inventory at keats office supplies and data 280202

Aug 29, 2021 | Uncategorized

The beginning inventory at Keats Office Supplies and data on purchases and sales for a three month period are as follows:



Instructions

1. Based 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, first out 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.

5. Based upon the preceding data, would you expect the inventory using the last in, first out method to be higher orlower?

leeann and pat have been discussing the introduction of an improved gizmo 280233

Aug 29, 2021 | Uncategorized

Midwest Fan, Inc.

Internal Memorandum

To: You

From: Sandy Walker

Date: March 7, 2013

Re: Improved product offering

LeeAnn and Pat have been discussing the introduction of an improved Gizmo to replace our current model. LeeAnn wants to keep the selling price the same to avoid losing any customers. Pat has projected the costs to produce the improved Gizmo (see below). The higher costs are due to better materials used in the manufacturing process of the improved Gizmo and the higher labor time per unit needed to produce the improved Gizmo.

Current Gizmo Improved Gizmo

Selling price

$75.00

$75.00

Manufacturing costs:

Direct materials 21.00 $25.00

Direct Labor 3.75 5.00

Fixed Manufacturing overhead 10.63 14.17

Total manufacturing costs 35.38 44.17

Profit per unit $39.62 $30.83

Total fixed manufacturing overhead $850,000

Total fixed operating expenses $800,000

I will be meeting to discuss this with LeeAnn and Pat. I need your assistance to prepare for this meeting. Please provide me with the answers to the following questions:

? What level of sales do we need in units and dollars to breakeven on the current Gizmo? The improved Gizmo?

? How much would we have to raise the selling price to maintain our current operating income? We sell 80,000 Gizmos and expect volume of the improved Gizmos would be the same.

? Because demand is relatively inelastic, does LeeAnn’s recommendation to keep the price the same make sense? Which pricing strategy would you recommend and why?

Midwest Fan, Inc.

Internal Memorandum

To: You

From: LeeAnn Brown, Marketing Manager

Date: March 8, 2013

Re: New product offering

The marketing and production teams will be meeting to discuss the introduction of a new product to our product line next year. It’s called the Thermogizmo. Our current Gizmo is a high volume mature product with an established customer base. Customers tend to process their repeat orders through our online ordering system resulting in a relatively low cost to serve. We have been considering improving the current model but a better strategy may be to introduce the Thermogizmo, a specialty product customized to each customer’s specific need. Here is the most recent data related to our current Gizmo and the new Thermogizmo.

Current Gizmo

Thermogizmo

Selling price $75.00 $90.00

Manufacturing costs:

Direct materials 21.00 28.00

Direct labor 3.75 7.50

Fixed manufacturing overhead 10.63 21.25

Total manufacturing costs 35.38 56.75

Profit per unit $39.62 $33.25

Annual production/sales (units) 50,000 15,000

Direct labor hours per unit .25 .50

Average direct labor hour rate $15.00 $15.00

Manufacturing overhead budget $850,000

Fixed operating expenses $800,000

Based on the above projected product mix for next year, Kelly put together the following operating income projection.

Gizmo Thermogizmo Total

Sales $3,750,000 $1,350,000 $5,100,000

Variable costs 1,237,500 532,500 1,770,000

Contribution margin $2,512,500 $817,500 $3,330,000

Fixed costs 1,650,000

Operating income $1,680,000

We hope you can provide us with your input to our strategy meeting. Here are our questions:

? What level of sales do we need to breakeven assuming my product mix?

? We’ve discussed the possibility of reallocating some of our marketing dollars from the Gizmo to the Thermogizmo to better promote this higher margin product. With this plan, we project the product mix will change Gizmo sales of 30,000 units and Thermogizmo sales of 25,000 units. What impact would this have on our operating income and breakeven point in sales dollars?

? What do you recommend we do?

Attachments:

Accounting HW….docx

the following characteristics may be related to either periodic 280245

Aug 29, 2021 | Uncategorized

The following characteristics may be related to either periodic inventory or perpetual inventory systems or both.

a. Purchases of inventory are journalized to an asset account at the time of purchase.

b. Purchases of inventory are journalized to an expense account at the time of purchase.

c. Inventory records are constantly updated.

d. Sales made require a second entry to be journalized to record cost of goods sold.

e. Bar code scanners that record sales transactions are most often associated with this inventory system.

f. A physical count of goods on hand at year end is required.

Requirement

1. Identify each characteristic as one of the following:

a. Periodic inventory

b. Perpetual inventory

c. Both periodic and perpetual inventory

d. Neither periodic nor perpetual inventory

the following data were extracted from the accounting records of 280249

Aug 29, 2021 | Uncategorized

The following data were extracted from the accounting records of Meniscus Company for the year ended June 30, 2008:

Merchandise inventory, July 1, 2007 . . . . . . . . . . . . $ 183,250

Merchandise inventory, June 30, 2008 . . . . . . . . . . 200,100

Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,279,600

Purchases returns and allowances . . . . . . . . . . . . . . 41,200

Purchases discounts . . . . . . . . . . . . . . . . . . . . . . . . . . 20,500

Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,800,000

Transportation in . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,250

a. Prepare the cost of merchandise sold section of the income statement for the year ended June 30, 2008, using the periodic inventory system.

b. Determine the gross profit to be reported on the income statement for the year ended June 30, 2008.

the following transactions occurred between belvidere pharmaceut 280273

Aug 29, 2021 | Uncategorized

The following transactions occurred between Belvidere Pharmaceuticals and D & S, the pharmacy chain, during July of the current year:

Jul 6 D & S purchased $12,000 of merchandise from Belvidere on credit terms of 3/10, n/30, FOB shipping point. Separately, D & S paid a $200 bill for freight in. These goods cost Belvidere $3,600.

10 D & S returned $3,000 of the merchandise purchased on July 6. Belvidere accounted for the sales return and placed the goods back in inventory (Belvidere’s cost, $1,200).

15 D & S paid $6,000 of the invoice amount owed to Belvidere for the July 6 purchase, less the discount.

27 D & S paid the remaining amount owed to Belvidere for the July 6 purchase.

Requirements

1. Journalize these transactions on the books of D & S.

2. Journalize these transactions on the books of Belvidere Pharmaceuticals.

the inventory accounting records for lee enterprises contained t 280292

Aug 29, 2021 | Uncategorized

The inventory accounting records for Lee Enterprises contained the following data:

Beginning inventory …………………… 400 units at $12 each

Purchase 1, Feb. 26 …………………….2,300 units at $14 each

Sale, March 9 …………………………..2,500 units at $27 each

Purchase 2, June 14 …………………….2,200 units at $15 each

Sale, Sept. 22 …………………………..2,100 units at $29 each

Required:

1. Calculate the cost of ending inventory and the cost of goods sold using the FIFO, LIFO, and average cost methods. (Use four decimal places for per unit calculations and round all other numbers to the nearest dollar.)

2. Compare the ending inventory and cost of goods sold computed under all three methods. What can you conclude about the effects of the inventory costing methods on the balance sheet and the income statement?

the jarmen cabinet company sold 2 200 cabinets during 2010 at 280301

Aug 29, 2021 | Uncategorized

The Jarmen Cabinet Company sold 2,200 cabinets during 2010 at $80 per cabinet. Its beginning inventory on January 1 was 130 cabinets at $28. Purchases made during the year were as follows:

February ……………………..225 cabinets @ $31.00

April …………………………350 cabinets @ $32.50

June ………………………….700 cabinets @ $35.00

August ……………………….300 cabinets @ $33.00

October ………………………400 cabinets @ $34.00

November ……………………250 cabinets @ $36.00

The company’s selling and administrative expenses for the year were $50,500. The company uses the periodic inventory system.