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# Accounting

### Choice of Products

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

### Monroe Company: Compute scheduled production and purchases

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

### Calculating accounts payable for end of year

I need help understanding this question: Acmal Manufacturing Company is estimating the following raw material purchases for the last four months of the year: September \$850,000 October \$900,000 November \$810,000 December \$780,000 At Acmal, 25% of raw materials purchases are normally paid for in the month

### Taxation: Medical Expenses (Multiple Choice Questions)

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

### Tax: Employee business expenses deductions, and allowable medical expenses

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 Leontyne Price Company: Accounting for R&D Costs

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

### Discounting Cash Outflows

The company is deciding whether to invest in a certain capital investment. The investment requires an initial outlay of \$55,000 and annual payments of \$12,000 made at the end of the year for five years. The company's discount rate is 14%. What is the present value of cash outflows related to this investment?

### Antioch Extraction: Cost behavior high-low method

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)

### High-Low method of Cost estimation for Rio Bus Tours in Brazil

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

### Tax Deductions: Statutory Employee and travel-related expenses

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: How much after-tax income increase to prevent dilution of EPS

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

### Liquidated Corporation: tax consequences and example

What are the tax consequences to a corporation that is liquidated? Provide an example.

### Big Dom's EAR vs APR; Baryla income tax: average and marginal rate

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

### Details regarding Accounting questions

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

### Compare maximizing profit and maximizing shareholder wealth

Compare and contrast maximizing profit and maximizing shareholder wealth. List comparisons and list contrasts for discussion. Use examples from financial websites which indicate ways companies are maximizing profit and/or shareholder wealth.

### Comprehensive Tax Strategies: 3-38, 3-58, I3-59, I8-40, I10-52, I13-65, I6-23

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: Calculate EBIT and EPS, leverage, break even point

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

### What is the basis of land contributed to Misty, Inc.?

25. Red Tide County contributed two acres of land worth \$500,000 to Misty Inc. in exchange for its commitment to develop a landfill. Which of the following is a true statement concerning this transaction? A. Misty must issue stock to the county in exchange for the land. B. The corporation's basis in the land is zero. C. The

### Determining Gain Recognized on Transaction

1. Ms. Pinella contributed property (adjusted basis \$50,000, FMV \$84,000) to Price Inc. in exchange for 200 shares of its stock (FMV=\$74,000) and \$10,000 cash. This exchange qualified under Section 351. Her gain recognized on this transaction is: a. \$50,000 b. \$84,000 c. \$54,000 d. \$10,000 Please show work in detail.

### Monroe Clock Company: Recomputing Overhead Rates

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

### Finding break even point

Borich Corporation produces and sells a single product. Data concerning that product appear below: Selling price per unit \$142 Variable expense per unit \$85 Fixed expense per month \$328,000 The break-even point in monthly unit sales is closest to: 5,654 units 5,904 units 5,754 units 6,104 units

### Cost hierarchy

Otto Dieffenbach & Sons, Inc. is a small manufacturing company in La Jolla that uses activity-based costing. Dieffenbach & Sons accumulates overhead in the following activity cost pools. 1. Hiring personnel. 2. Managing parts inventory. 3. Purchasing. 4. Testing prototypes. 5. Designing products. 6. Setting up equipment.

### Atlantic Beach Company Process Costs

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

### Under/over applied overhead for Texco Corporation

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:

### Compute sales, CGS and gross profit

Les Fleurs, a boutique in Paris, France, had the following accounts in its accounting records at December 31, 20X2 (amounts in Euros, denoted as "E") Purchases..................... E250,000 Freight In.................. E8,000 Sales discounts............. 4,000 Purchase returns........ 7,000 Inventory Sales.......

### Accounting Concepts for Srinivas Company: equation approach for transactions

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

### Accounting for Governmental Funds

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

### Can surveyors affect the responses in personal interviews?

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?

### Irregular items, accounting change, horizontal analysis, liquidity & solvency ratios

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