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Accounting

Raw materials price variance

Actual price per unit of input (per lb ) $ 7.80 Standard price per unit of input (per lb) $ 7.00 Standard inputs allowed per unit of output 10 lbs Actual units of input 115,000 lbs Actual units of output (product) 14,400 What is the formula to compute

Material Price and Quantity Variances

Bangkok Custom Shirt Company uses a special fabric in the production of dress shirts. During August, Bangkok Custom Shirt purchased and used 7,900 square yards in the production of 3,800 shirts at a total cost of B5,490,500. (B stands for the Thai baht. There are roughly 35 bahts to the U.S. dollar). The standard allows two yard

Absorption vs. Variable Costing

Lang Glass Company makes stained glass lamps. Each lamp that it sells for $210 per lamp requires $12 of direct materials and $48 of direct labor. Fixed overhead costs are expected to be $135,000 per year. Lang Glass expects to sell 1,000 lamps during the coming year. Selling and administrative expenses were zero. Required.

Gilman Corporation: Improve Computation of per Unit Costs

Consider the following scenario: Due to seasonal fluctuations, Gilman Corporation has a problem determining the unit cost of its products. For example, high heating costs during the winter months cause the cost per unit to be higher than the per unit cost in the summer months, even when producing the same number of units of t

Pooling of interests vs Purchase: Recording of Equipment

How would equipment obtained a business combination have been recorded under each of the following methods: Pooling of Interests Purchase a) Recorded value Recorded value b) Recorded value Fair Value c) Fair Value Fair Value d) Fair Value Recorded value

Equity income in Steinbart to be reported by Alex

Alex, Inc, buys 40 percent of Steinbart Company on January 1, 2008 for $530000. The equity method of accounting is to be used. Steinbarts net assets on that date were $1.2 million. Any excess of cost over book value is attributable to trade name with a 20-year remaining life. Steinbart immediatlely begins suppling inventory

Taxing Non-Cash Winnings; Bad Debt Deduction; Tax Base

1.Tom Y, a longtime client and golfing buddy, has asked you to prepare his tax return. In looking at the material he has prepared for you, you notice that he has not mentioned the BMW that he won in the annual club tournament. When you ask Tom about this, he says that he knows that the club never reports these items to the I

Greenleaf Manufacturing: Journalize transactions

Greenleaf Manufacturing Company has two production departments: Cutting and assembly. August 1 inventories are: Raw Material $4,200 Finished Goods $31,900 Work-in Process Cutting $3,900 Work-in Process Assembly $10,600 Journalize these transactions 1. Purchased raw materials for $56,300 2.Incurreed factor labor

Total Contribution Margin and Gross Margin

Pinewood Company, which has only one product, has given the following data regarding its last month of operations: Selling Price.......................................................................$200 Units in beginning inventory....................................0 Units produced.......................................

Discuss ABC Classifications of Activities

See Excel file attached. Required: Choose two activities or accounts from each of the four classifications and explain why you agree or disagree with the ABC project team's classification.

Accounting multi choice: process costing, job costing, inventories

Which of the following is true about both process costing systems and job costing systems? 1. Either one can be easily implemented in any type of manufacturing situation. 2. The use of finished goods accounts is unnecessary in either method. 3. None of the other answers 4. Both utilize work in process accounts to accumulat

Westmore, Ltd. is a British subsidiary of a U.S. company

Westmore, Ltd. is a British subsidiary of a U.S. company. Westmore's functional currency is the pound sterling. The following exchange rates were in effect during 2009: Jan 1 $1 = £.625 June 30 $1 = £.610 Dec 31 $1 = £.620 Weighted average rate for the year $1 = £.630 Required: 1) Westmore reported sal

Recording Transactions and their Effects on Financial Statements

Mikor has an account payable of $7,700 due to Smiley, Inc., one of its suppliers. The amount was due to be paid on October 15, 2008. Mikor only had enough cash on hand then to pay $1,700 of the amount due, so Mikor's treasurer called Smiley's treasurer and agreed to sign a note payable for the balance. The note was dated October

The Federal Income Tax System and Tax Reform

1. Is there anything wrong with the current federal income tax system in the U.S.? If so, what? 2. What did President Bush hope to accomplish by appointing the Bipartisan Advisory Council on Tax Reform? 3. What did the Bipartisan Advisory Council on Tax Reform recommend? 4. What is the difference between progressive taxes and

Identify Value-adding Activities from the list provided.

When Courtney Tybee prepared a process value analysis for her company, she identified the following primary activities. Identify the value-adding activities. 1. Production scheduling 2. Customer follow-up 3. Materials moving 4. Product Inspection 5. Engineering design 6. Product marketing 7. Product sales 8. Material

State Sales and use Taxes

Jared wants to give his wife a $30,000 diamond necklace for her birthday. To avoid the state and local general sales tax of 8.5%, he asks his aunt (who lives in New Hampshire) to make the purchase. Has Jared saved $2,550 (8.5%  $30,000)?

Calculation of Underapplied or Overapplied Overhead

At year end, records show that actual overhead costs incurred were $25,870 and the amount of overhead costs applied to production was $27,000. Identify the amount of under- or over applied overhead, and indicate whether the cost of goods sold account should be increased or decreased to reflect actual overhead costs.

Discuss characteristics of budgets

You recently attended a workshop on budgeting and overheard the following comments as you walked to the refreshment table: 1. "Budgets are the same regardless of the size of an organization or management's role in the budgeting process." 2. "Budgets can include financial or non financial data. In our Organization, we plan th

Danger of Inflation and Deflation

Which one, inflation or deflation, is more dangerous to the economic growth of the economy in the short-term and the long-term? I tried searching the Internet and cannot find anything about the short-term and long-term effects. Obviously, I found plenty of information concerning the effects of both. Also, I could not identify wh