The accounting records of the Microfine Company revealed the following costs: Factory utilities $42,000. Wages of assembly-line workers 194,000. Customer entertainment 52,000.
I need the solutions for these 2 problems to help in my examination preparation. thanks Sample problem 4. Lennox Industries manufactures two products: A and B. A review of the company's accounting records revealed the following per-unit costs and production volumes: A B Production volume (units) 2,500 5,000 Direc
I need help with these 2 problems. Thanks. Moore Company needs to determine the variable utilities rate per direct machine hour in order to estimate cost for August. Relevant information is as follows. Month Machine Hours Worked Utilities Cost April 4,800 $4,144 May 5,200 4,300 June 5,600 4,482 July 6,000 4,
20 questions Tables for questions 5 - 11 - 12 - 15 - 19 in attachment Question 1 Absorption costing is useful because it reflects the full costs that sales must exceed for the company to be profitable. Question 1 answers True False Question 2 When evaluating a special order, management should
1. Changing Fixed Costs to Variable Costs at Blockbuster Video According to an article in Business Week, when John F. Antioco took charge of Blockbuster Video, he changed the company's strategy. Traditionally, Blockbuster had bought videotapes from the move studios for an average cost of about $65 each, planning to rent them ou
1. Cost-Volume-Profits and Vending Machines Riccardo Food Services Company operates and services soft drink vending machines located in restaurants, gas stations, and factories in four southeastern states. The machines are rented from the manufacture. In addition, Riccardo must rent the space occupied by its machines. The follo
Dinesh Patel is the sales manager of Davidson Enterprises, a very profitable distributor of office furniture to local businesses. A recent economic downturn has created an extremely tight cash position, and the company has been hurt by the bankruptcy of two key customers. In late October, anticipating an economic recovery,
Tiger Corp purchases 1,200,000 units per year of one component. The fixed cost per order is $25. The annual carrying cost of the item is 27% of its $2 cost. a) Determine the EOQ under each of the following conditions: (1) no changes, (2) order cost of zero, and (3) carrying cost of zero. b) What do your answers illustrate
The Skill Craft Appliance Company has two products: a plain mixer and a fancy mixer. The plain mixer sells for 464 and has a variable cost of $48. The fancy mixer sells for $100 and has a variable cost of $70. 1. compute contribution margins and contribution-margin ratios for plain and fancy mixers. 2. The demand is for more
The Monroe Company has budgeted sales for the year as follows: Quarter 1 Quarter 2 Quarter 3 Quarter 4 sales in unit 10,000 12,000 14,000 16,000 The ending inventory of finished goods for each quarter should equal 25% of the next quarter's budgeted sales in un
Phillip developed hip problems and was unable to climb the stairs to reach his second-floor bedroom. His physician advised him to add a first-floor bedroom to his home. The cost of constructing the room was $32,000. The increase in the value of the residence as a result of the room addition was determined to be $17,000. In addi
During the year, Kirk travels from Trenton to Oslo (Norway) on business. His time was spent as follows: 2 days travel (one day each way), 2 days business, and 2 days personal. His expenses for the trip were as follows (meals and lodging reflect only the business portion): Air fare $3,300 Lodging 900 Meals and entertainment
E12-16 (Accounting for R&D Costs) Leontyne Price Company from time to time embarks on a research program when a special project seems to offer possibilities. In 2006 the company expends $325,000 on a research project, but by the end of 2006 it is impossible to determine whether any benefit will be derived from it. Instructions
Jupiter Corp Special Order from Venus: should order be accepted? Jupiter Corporation manufactures skateboards. Several weeks ago, the firm received a special-order inquiry from Venus, Inc. Venus desires to market a skateboard similar to one of Jupiter's and has offered to purchase 11,000 units if the order can be completed in three months. The cost data for Jupiter's model no. 43 skateboard follow. Additional data: ? The normal selling price of model no. 43 is $26.50; however, Venus has offered Jupiter only $15.75 because of the large quantity it is willing to purchase. ? Venus requires a modification of the design that will allow a $2.10 reduction in direct-material cost. ? Jupiter's production supervisor notes that the company will incur $3,700 in additional setup costs and will have to purchase a $2,400 special device to manufacture these units. The device will be discarded once the special order is completed. ? Total manufacturing overhead costs are applied to production at the rate of $20 per machine hour. This figure is based, in part, on budgeted yearly fixed overhead of $750,000 and planned production activity of 60,000 machine hours (5,000 per month). ? Jupiter will allocate $1,800 of existing fixed administrative costs to the order as "...part of the cost of doing business."
Jupiter Corporation manufactures skateboards. Several weeks ago, the firm received a special-order inquiry from Venus, Inc. Venus desires to market a skateboard similar to one of Jupiter's and has offered to purchase 11,000 units if the order can be completed in three months. The cost data for Jupiter's model no. 43 skateboard f
Antioch Extraction, which mines ore, uses a calendar year for both financial-reporting and tax purposes. The following selected costs were incurred in December, the low point of activity, when 1,500 tons of ore were extracted: Straight line depression 25,000 Charitable contributions 11,000 (incurred only in December)
Problem 1. Rio Bus Tours has incurred the following bus maintenance costs during the recenttourist season. (The real is Brazil's national monetary unit. On the day this exercise was written, the real was equivalent in .4378 US dollar.) Month Miles traveled by the us Cost Nov 8,500 11,400 real Dec 10,600 11,600
Statutory employees: a. Report their expenses on Form 2106. b. Include common law employees. c. Are subject to income tax withholdings. d. Claim their expenses as deductions for AGI. e. None of the above. Felicia works as an auditor for a large major CPA firm. During the months of October and November of each year, she i
Newdex has net income of $2,500,000 and 1,000,000 shares outstanding. It needs to raise $3,610,000 in funds for a new asset. Its investment banker plans to sell an issue of common stock to the public for $40, less a spread of 5%. How much must Newdex's aftertax income increase to prevent dilution of EPS? a) $40,000 b0 $237,5
What are the tax consequences to a corporation that is liquidated? Provide an example.
EAR versus APR Big Dom's Pawn Shop charges an interest rate of 16 percent per month on loans to its customers. Like all lenders, Big Dom must report an APR to consumers. (Do not include the percent sign (%). Round your answers to 2 decimal places, e.g. 32.16.) What rate should the shop report? percent What is the effect
1. Brady Company sells imported goods made in India. One product it sells is a wooden music box. The music box cost Bray $65, and Brady charges its customers a price of $250. Brady's cost of capital is 12%. On average, an entire year elapses between the time Brady pays for a music box and the time Brady collects the cash fr
3-38 Alimony. As a result of their divorce, Fred agrees to pay alimony to Tammy of $20,000 per year. The payments are to cease in the event of Fred's or Tammy's death or in the event of Tammy's remarriage. In addition, Tammy is to receive their residence, which cost them $100,000 but is worth $140,000. a. Does the fact tha
Tri-Star Productions, Inc. is evaluating two different operating structures which are described below. The firm has annual interest expense of $250, common shares outstanding of 1,000, and a tax rate of 40 percent. Fixed Costs Price per Unit Variable C
Jim Monroe, president of the Monroe Clock Company, has just finished saying he did not think they knew what the new household timer was going to cost. His controller, Tom, had provided figures showing a full cost of $11.60, and Frank Tyler, his sales manager, ha worked out a cost of $6.30. Frank said that was the timer's cost us
Atlantic Beach Company manufactures suntan lotion, called Surtan, in 11-ounce plastic bottles. Surtan is sold in a competitive market. As a result, management is very cost-conscious. Surtan is manufactured through two processes: mixing and filling. Materials are entered at the beginning of each process and labor and manufacturin
Texco Corporation uses an activity-based costing system with two activity cost pools. Texco uses direct labor hours as the measure of activity in the first activity cost pool and the number of orders in the second activity cost pool. The following information relates to these two activity cost pools for last year:
Please see the attached files. The Srinivas Company was incorporated on April 1, 20X1. Srinivas has ten holders of common stock. Diveesh Srinivas, who was the president and chief executive officer, held 51% of the shares. The company rented space in chain discount stores and specialized in selling ladies' shoes. Srinivas's fi
Only need assistance with part "B". Please review the attached simulation in order to complete. Please include references. Before meeting with the Learning Team, each individual team member should run the "Accounting for Governmental Funds" simulation. As a team, prepare a paper that includes the following: a. Discu
For personal interview and observations : is it possible the surveyor can affect the responses? How might that happen? Are there ethical issues involved with experimentation?
1. What are examples of irregular items? How does a change in accounting principles affect the financial statements? Who in the organization is responsible for the application of a change in an accounting principle? Why? 2. What is horizontal analysis? What is the value in using horizontal analysis? Why would a company use th