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Accounting

Overhead Costs and Transfer Price

Company XYZ attempting to determine costs associated with various jobs. Current production records show the following information for two recent jobs: Job 1 Job 2 Direct materials costs $15,600 $31,200 Direct labor costs: Assembly Department $ 3,900 $ 5,200 Cutting Department $10,400 $ 2,600 Machine hours used in t

Variable/ fixed/ mixed costs

The Salvage Company incurred the following costs for the month of August when it observed an activity level of 10,000 units. Activity level in units --------- 10,000 Variable Costs ----------------- $30,000 Fixed Costs -------------------- $50,000 Mixed Costs -------------------- $40,000 Total Costs -------------------- $

Holes Company: Variable Costs

The Holes Company realizes 3 products from a single mining process: Products A1, A2, and A3. Each product may be sold as is in its raw form or processed further into a more refined state. The additional processing requires no expanded capacity and production costs are entirely variable. Sales values and cost information are:

Cash Collections for Firm Cash Budgets

Great Buy's sales are all made on account. The firm's collection experience has been that 20% of a month's sales are collected in the month of sale, 60% are collected in the month following the sale, and 18% are collected in the second month following the sale. The sales forecast for August through November is: Aug.---------$

Net Operating Loss (NOL)

Shep King Corporation reported the following pretax financial income (loss) for the years 2000 through 2007. Pretax Financial Income (Loss) Tax Rate 2000 $80,000 30% 2001 $34,000 35% 2002 $96,000 50% 2003 ($300,000) 40% 2004 $180,000 40% 2005 $60,000 40% 2006 $210,000 40%

Value Alignment for Existing Organizations

Select an existing organization with which you are familiar with and write a 700 word paper in which you analyze the individual values and the organization's values as reflected by the organizations plans and actions. In your paper be sure to include the following: o Analyze the origin(s) and subsequent evolution of your

Recognized Gain for Lemonade, LLC

Please help me with the following showing calculations: Lemonade, LLC distributes property to Arlene, one of its members. At the time of the distribtutions, Arlene has an outside basis of $50,000. The FMV of the property is $90,000 and its inside tax basis to Lemonade is $70,000. this is a nonliquidiating distribution. What i

Company A manufactures and sells small paper goods.

Company A manufactures and sells small paper goods. They sell to major retailers such as Costco, Sam's Club and Wal-Mart. These large retailers demand that should goods be unsold at any time in the future, they may return the goods, without limitation, to the Company A and charge back transportation and a repack charge. W

Compute Full Cost and Processing

Joint Products, Inc., produces two joint products, X and V using a common input. These are produced in batches. The common input costs $8,000 per batch. To produce the final products (X and V), additional processing costs beyond the split-off point must be incurred. There are no beginning inventories. The accompanying data summa

Allocation System at Reed Park

Reed Park, Inc., is a bottler/supplier of bottled spring water to both commercial and residential customers. Reed Park's corporate headquarters is located in Clearwater Springs, Colorado. It operates distribution centers (DCs) in three territories throughout the metro Clearwater Springs area. The company began by selling to res

Allocation of Costs..

Problem 7-8 "Winterton Group" The Winterton Group is an investment advisory firm specializing in high-income investors in upstate New York. Winterton has offices in Rochester, Syracuse, and Buffalo. Operating as a profit center, each office receives central services, including information technology, marketing, accounting, and

Flexible Budget Developing Reports

What is a flexible budget? What are the steps to developing a flexible budget? What information is found on a flexible budget report? How is that information used to evaluate performance?

Accruals and Defferals of Company X

Example 1: Accrual basis of accounting is the recognized of revenues when the sale or service occurs regardless of when actual cash is received. It recognizes expenses incurred. Company X sells $10,000 of widgets on August 8, 2000 (recognized). Company Z pays Company X $10,000 for widgets on October 25, 2000 $10,000 (c

Read Attached Scenario and Answer Question

Give information that focuses on the analysis of different alternatives available to Guillermo Scenario. 1. Give a sensitivity analysis. Information Does not have to perfect

Two Short Accounting Problems

Please help with the following problems. 1) On October 1, 2006, Parton Industries borrowed $12 million cash to provide working capital. The loan was made by Second Bank under a short-term line of credit. Parton issued an 8-month, "noninterest-bearing note." 8% is the bank's stated "discount rate." Parton's fiscal period is t

Calculating Earnings Per Common Share

At December 31, 2007 and 2006, Broken Arrow Corp. had 180,000 shares of common stock ad 10,000 shares of 5%, $100 par value cumulative preferred stock outstanding. No dividends were declared on either the preferred or common stock in 2007 or 2006. Net income for 2007 was $400,000. For 2007, earnings per common share amounted to?

HMS Ghost Issuance of Treasury Shares

In 2006, HMS Ghost Corp. acquired 9,000 shares of its own $1 par value common stock at $18 per share. In 2007, HMS Ghost issued 4,000 of these shares at $25 per share. HMS Ghost uses the cost method to account for its treasury stock transactions. What accounts and what amounts should HMS Ghost credit in 2007 to record the issuan

Taxation II

1. Robert Reed, a bachelor, maintains his parents in a nursing home. They have no income of their own and are completely dependent on their son. His parents are 75 and 72 years of age. Robert has the following sources of income. Salary... $45,000 Interest on municipal bonds... 750 Interest on bank accounts... 800 Dividends

Computing the Loss on Early Debt Extinguishment

On its December 31, 2006 balance sheet, Carl Corp. reported bonds payable of $6,000,000 and related unamortized bond issue costs of $320,000. The bonds had been issued at par. On January 2, 2007, Carl retired $3,000,000 of he outstanding bonds at par plus a call premium of $70,000. What amount should Carl report in its 2007 inco

Taxable Rental Income for a Cash-Basis Taxpayer

1. John Smith, as the owner of an apartment building, receives and makes the following payments during 2008. Received in Jan 2008 rent that was due in Dec 2007.... $5,000 Received in Dec 2008 rent not due until Jan 2009.... $4,000 Security deposit which is to be refunded when tenant vacates the apartment... $500 How

Accrued Interest Payable

On September 1, 2006, Olsen Co. issued a note payable to National Bank in the amount of $1,200,000, bearing interest at 12%, and payable in three equal annual principal payments of $400,000. On this date, the bank's prime rate was 11%. The first payment for interest and principal was made on September 1, 2007. On December 31, 20

Banks and Loans

Why banks have bad loans? For the most part I feel that it was the lenders who are the most responsible. They were willing to ignore the ability to pay on the loans in order to lend as much as possible. The lowering or even turning of the back on the qualifications of the borrower turned out to kick them in the backside. However

Bad loans guidelines

Underwriter had the guidelines that could have helped maybe lessen the overall situation (bad loans)(I do not think that this alone has caused the economic crisis). Was it just greed by the banks and lenders?

Study Guide

Please help with this study guide. Study Guide Managerial Accounting 1. Whirl Company sells cordless razors for $50. Variable costs are 40% of sales and total fixed costs are $40,000. What is the firm's magnitude of operating leverage if 2,000 units are sold? A) 3.0 B) 2.0 C) 1.5 D) None of the above 2. Select