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    Accounting

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    Profit Reports

    The company is organized into two lines of business(software and consulting), and profit statements are prepared as follows: software consulting Sales $10,000,000 $5,000,000 Less direct costs 5,000,000 3,

    Incremental Analysis for Decision Making

    (a) Prepare the incremental analysis for the decision to make or buy the lamp shades. We will calculate the cost of making the lamp shades: Here we will consider all the relevant costs. In this case the relevant costs are variable costs and hence we will not consider fixed costs: =Material cost+ Labor cost+ Overheads =5+6+

    Variable and absorption costing for a vehicle

    9-16 Variable and absorption costing, explaining operating-income differences. Nascar Motors assembles and sells motor vehicles and uses standard costing. Actual data relating to April and May 2006 are: The selling price per vehicle is $24,000. The budgeted level of production used to calculate the budgeted fixed manufactu

    Variable costs

    Revenue (8,000 units) 16,000 Variable costs 4,000 Contribution margin 12,000 Fixed costs 4,000 Net income 8,000 If actual production totals 8,400 units, flexible budget would show variable costs of??

    Selecting a business segment

    Please see the attached file. Sales faux Traditional Less cost of goods sold $800,000 $200,000 Unit level production cost 500,000 120,000 Depreciation, production equipmen

    Cast Shortages

    Please help me with this question. Thanks. Information for June: cash receipts $542,000 beginning cash balance 10,000 cash payments 560,000 desired ending cash balance 50,000 If there is shortage, the company borrows money from the bank. All cash is borrowed at the beginning

    Cash Inflows

    Expected total sales: Month Sales January $25,000 February 30,000 March 35,000 April 40,000 The company expects 70% of its sales to be an account (credit sales). Credit sales are collected as follows: 25% in the month of sale, 72% in the month following the sale with the remainder being un

    Accounting Word Questions - Multiple Choice

    1. Which of the following is not an asset: a. Accounts Payable b. Furnishing and Equipment c. Supplies d. Cash 2. Smith acquired $500 worth of supplies on credit. Which of the following journal entries would be recorded? a. Debit supplies, credit cash b. Debit cash, credit supplies c. Debit supplies, credit accounts

    Price to Charge for $90,000 Profit

    A company produces and sells 4,000 units of a product that has a contribution margin of $6 per unit. The Co. sells the product for a sales price of $20 per unit. Fixed costs are $18,000. The company is considering investing and that would decrease the variable cost per unit to $8 per unit and double total fixed costs. The compan

    Net Income: Accounting

    Budgeted income statement: sales revenue (2,300 units x $14 sales price) $32,200 total variable expenses (2,300 x $6 per unit) (13,800) contribution margin 18,400 fixed expense (10,000) net income $8,400 The co

    Net Income for Operations

    In its first year of operations, a company paid $4,000 for direct material and $8,500 for production workers wages. Lease payments and utilities on the production facilities amounted to $7,500 while general, selling, and administrative expenses (GSA) totaled $3,000. The company produced 5,000 units and sold 4,000 at a price of $

    Variable and Absorption Costing

    What are the differences between variable and absorption costing? Why is variable costing not allowed for GAAP reporting? Which method is more useful for internal decision-making? Why? As a manager, which would you prefer? Why?

    Taxes and Deferred Taxes

    Easton Co. at the end of 2004, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income $ 400,000 Estimated litigation expense 1,000,000 Installment sales (800,000) Taxable income 600,000 The estimated litigation expense o

    Governmental Accounting Journal Entries

    Benton County voted to establish an internal service fund to account for printing and copying for all its department and agencies. The County engaged in the following activities related to the new fund. Prepare transactions to record these events in the internal service fund. If no entry is required, write "No Entry Required.

    Accounting Criteria of Ford and Honda

    Can you help me outline 12 bullet points comparing and contrasting the accounting reporting criteria between Forda and Honda using GAAP? Do both companies use GAAP or just Ford? If Honda doesn't use GAAP, what do they use compared to Ford? Can you help me cite three references noting the contrast and comparison?

    Accounting concepts and business structures memo

    Assume the role of an accounting intern who receives an email from an old high school friend. Your friend is planning to open a new business and does not have an accounting background. He has been talking to a bank about a loan to start his business and he knows he will need an accounting system for his new enterprise. He is ask

    AMT and Wolfgang's Itemized Deductions

    Wolfgang's AGI is $140,000. He has the following itemized deductions for 2007: Medical expenses [$12,000 - (7.5% x $140,000)] $1,500 State income taxes $4,200 Charitable contributions $5,000 Home mortgage interest on his personal residence $6,500 Casualty loss (a

    Categories of Assets

    This solutions provides the learner with an undestanding of the three classes of assets that can be found on a balance sheet and provides examples of what belongs in each category

    New Partnership of Patrick Company and Samuelson Company

    See pdf file attached The post-closing trial balances of two proprietorships on January 1, 2008, are presented All cash will be transferred to the partnership, and the partnership will assume all the liabilities of the two proprietorships. Further, it is agreed that Patrick will invest an additional $5,000 in cash, and

    Applying Overhead Cost

    A company is currently working two jobs. The job order cost sheets for job 101 and job 102 showed the following information: Job 101 Job 102 Direct materials $12,000 $15,000 Direct labor 24,000 45,000 If overhead is applied to jobs at $.80 per direct labor dollar, the tota

    ABC

    Some firms have a lot of fixed costs and few variable costs, while other firms are configured the other way around. What affect do you think the existence of a high proportion of fixed costs has on the desirability of using ABC methods?

    Over- or Under-Applied Overhead Variances

    A) Explain the various factors and considerations used in determining if a variance is over- or under-applied. Why is this type of analysis important to managers? What are some causes of variances? How should they be addressed? Who should be held responsible for these variances B) Price and efficiency variances. Pet

    Operating Income Reports

    A Co. reported the following information for 2003. Sales $787,000 Average Operating Assets $375,000 Desired ROI 12% Residual Income $11,250 The Co. operating income for 2003 was: a) $94,440 b)$33,750 c)$45,000 d)56,250

    Step down method

    Please see attached file. Department Financial Managerial Facilities Public Public Health Welfare Budgeted costs $8,000 $4,000 $2,000 $5,000 $3,000 Sq. Ft. Occupied 25 15 10 30 20 Emp

    Segmenting questions

    Use the following information to answer questions 1 through 3. Domino Co. manufactures three sizes of dog carriers: small, medium, and large. Potential sales include 100 units of small, 120 units of medium, and 100 units of large per month. The barrier in reaching the sales level revolves around the maximum machine hours avai

    Price Variances and Purchases

    Price variance 12,000 U Usage variance 9,000 F The standard cost for material is $2 per pound and three pounds per unit. 20,000 units were produced. The purchase price variance was .30 per pound. Calculate: a. Pounds purchased b. Pounds used