Share
Explore BrainMass

Accounting

Ending owner's equity of a business

2) Determine the ending owner's equity of a business having a beginning owner's equity of$10,227, additional investments of $4,533, withdrawals of $1,210, and revenue of $8,254, and expenses before adjustment amounted to $273. The adjustments totaled $6,291. Explain your answer (in 300 words). $____________

Penelope, Mark, and John Entity Selection

After 20+ years of working for other firms, Penelope (Enrolled Agent, age 41), Mark (CPA, age 43) and John (CVA, age 65) want to leave the firms they are currently employed by and become their own bosses. Penelope specializes in Taxes, Mark is the Auditor and John is a Business Valuation expert. There are so many options avai

Predetermined Overhead Rate and Applied Overhead

1. Amanda Bitsworth manufactures votive candles. Overhead is applied to products on the basis of direct labor hours. Last year, total overhead costs were expected to be $85,000. Actual overhead costs totaled $63,000 for 6,500 actual hours. At the end of the year, overhead was under-applied by $4,000. A) Calculate the predeter

Residual Income Long Beach Pharmaceutical Company

Long Beach Pharmaceutical Company has two divisions, which reported the following results for the most recent year. Division I Division II Income $900,000 $200,000 Average invested capital $6,000,000 $1,000,000 ROI

Lockhart Products Absorbtion: Versus Variable Costing

Lockhart Products produces a single product. During 2009 the company incurred the following costs: Variable product costs= $8/ per unit Variable period costs= $2/ per unit Total fixed product costs= $21,000 Total fixed period costs= $10,000 Lockhart had no units in beginning inventory. During 2009, 6,000 units were prod

Memo for CFO Indicating Outcome of Tax Changes

JIM currently uses the calendar year as its financial and tax annual accounting period. Because of the seasonality of sales, management wants to change to a fiscal year beginning April 1st through March 31st. You have been asked to review the tax law criteria for making this change. Write a memo to your CFO: - indicating th

Total Manufacturing Costs: Horatio Ltd.

Scenario: Horatio Ltd. uses job order costing to measure and track product costs. Horatio has determined that machine hours drive its manufacturing overhead costs. During the month of June, the following data were available for Product #80: Direct Labor 350 hours at $10 per hour Direct Materials= 40 square yards at $25/yard

Predetermined and Applied Overhead Rates: Ganzalez Inc.

Ganzalez, Inc., manufactures stereo speakers in two factories: one in Vandalia, Illinois and another in Modesto, California. The Vandalia factory uses DL$ for its overhead rate and the Modesto factory uses machine-hours (MHs) for its overhead rate. Information related to both plants for last year is presented below: Vandalia

Absorption & Contribution Statement: Mr. Rosen, Jokkmok Industries

Mr. Rosen is the manager of a division of Jokkmok Industries. He is one of several managers being considered for the position of CEO, as the current CEO is retiring in a year. All divisions use standard absorption costing. The division has the capacity to produce 50,000 units a quarter and quarterly fixed overhead amounts to

The Number of Pillows to Sell to Make a Certain Gross Profit

Questions 4-5 are based on the following information. Dreamland Pillow Company sells the "Old Softy" model for $20 each. One pillow requires two pounds of raw material and one hour of direct labor to manufacture. Raw material costs $3 per pound and direct production labor is paid $4 per hour. Fixed supervisory costs are $2,

Account/Business Analysis/Financial Reporting MCQs

UNIT-3 2) To compute FICA-OASDI tax to be withheld: A) use net earnings and Form W-4. B) use gross earnings, number of allowances, and marital status. C) use the net earnings and number of allowances. D) None of these answers are correct. 4) Wendy Nelson works 48 hours as a graphic designer. Compute her weekly pay.

Calculating Tax Liability, Marginal Rate, Effective Tax Rates

Williams Inc reports total net income of $130,000 during 2012. This includes $10,000 of income from 5.5% Orange County municipal bonds. Thus the Corporation's taxable income is equal to $120,000. a) What is William's tax liability for 2012? b) What are William's marginal, average and effective tax rates, respectively? c) I

Variance and Control Purposes

If it is to be most useful for control purposes, what variance should be reported to the supervisor responsible for the number of pounds of corn syrup used in the manufacture of candy bar? a) Raw material price variance, expressed in cents per pound. b) Raw material usage variance, expressed as a total cost for the month. c

Calculation of Operating Income

Bob's Backpacks manufactures school backpacks adorned with movie-theme logos. During the first quarter of the year, the company had the following costs: Direct materials used $51,500 Direct labor 39,000 Factory rent 73,500 Factory equipment depreciation 13,500 Office equipment depreciation 1,100 Marketing expenses 5,800

Equitable Adjustments

The Conrad Corporation is a clothing manufacturer that won a sealed-bid contract to produce uniforms for the Government. Now several months later, Conrad has submitted a claim related to the Government's failure to provide Government Furnished Material (GFM). The following paragraphs outline contract events related to the clai

Economic Order Quantity (EOQ) model

The Economic Order Quantity (EOQ) model is helpful in determining accurate inventory decisions. Discuss the major inventory costs that are used in determining the EOQ. Propose an example from your own experience or what you could imagine where EOQ could be used to improve inventory decisions.

Intermediate Accounting Questions

Hello, if you can please help with the below problems and provide an explanation to the solution. I have trouble with the following topics. 1. Stan Ocean Works sells scuba equipment, which carry a 2-year warranty against defects. Past experience has given them a basis to estimate warranty costs as a percent of sales as follo

Variable vs Absorption Costing

Using the Part A data: Under which method (variable or absorption costing), will reported profits be higher? Explain why. Part A Data Budgeted and actual fixed costs $1,000,000 Budgeted unit volume to be produced 10,000 Budgeted unit volume sold 10,000 Actual variable costs $500,000 Actual unit volume sold 9,000 Beginn

Barton Products, Inc

Mike Barton owns Barton Products, Inc. The corporation has 30 employees. Barton Corporation expects $800,000 of net income before taxes in 2012. Mike is married and files a joint return with his wife, Elaine, who has no earnings of her own. They have one dependent son, Robert, who is 16 years old. Mike and Elaine have no other i

Accounting Horizontal and Vertical Analysis

Problem 17-1 (Algorithmic) Horizontal Analysis for Income Statement For 2012, Wiglaf Company reported its most significant decline in net income in years. At the end of the year, C.S. Lewis, the president, is presented with the following condensed comparative income statement: Wiglaf Company 1. Prepare a comparative inc

Resume Review

In order to mimic the average time a hiring manager spends on a resume, look at each of the following resumes for about 30 seconds and write down your first thoughts. Then, go back and critique the resumes for improvement, answering the questions below. Download and review the resumes as if you are screening candidates for a var

Crystal Glass Company

Crystal Glass is a producer of heirloom-quality glassware. The company has a solid reputation and is widely regarded as a model corporate citizen. You have recently been hired as a staff accountant at a time when the company is experiencing rapid growth and is looking for a substantial increase in the line of credit at the local

Horizontal Analysis vs. Vertical Analysis

Your friend comments, "Horizontal analysis is better than vertical analysis because you can actually see if things are improving between the years." Do you agree with this statement? Explain why or why not. If you were an investor who was considering a potential company in which to buy stock, what three ratios would be your t

Standard Cost Absorption and Cost Per Package: Stamper Manufacturing Co.

A cost analyst for Stamper Manufacturing Co. has assembled the following data about the Model 24 stamp pad: The piece of sheet metal from which five pad cases can be made costs $0.24. This amount is based on the number of sheets in a 4,200-pound bundle of sheet metal, which is the usual purchase quantity. The foam pad

Tax research: Non-liquidating distributions

Analyze how corporations treat non-liquidating distributions and determine the most likely mistake(s) the client could make that would result in an IRS audit. Advise the client on how to avoid the mistake(s) and how you would respond to the IRS inquiry if an audit request is received. Take a position as to whether the current

Separating Overhead Cost from Selling and Administrative Costs

Hello Mrs Ticchione, I appreciate your quick response with my previous request. I've selected you as my expert for this problem. Thank-you in advance for your assistance. Managers at Appalacian Woolen Mills are examining the following list of costs in order to determine the total amount of Manufacturing Overhead. Labor- P

CPA exam study questions for the BEC section of the exam

Hello I have been studying for the CPA for quite some time. I needs some help with these questions. I want to know if my answers are correct. Thank you 1. Which of the following gives the owners of the business limited liability? a. proprietorship b. partnership c. Corporation d. None of the above (THIS IS THE AN

Quality, Price, and Value

Quality and price equals value. When purchasing a car, does a BMW 500 series that costs $42,000 have more value than a Ford Taurus that cost $25,000? Or, in the mind of the consumer, could they have equal value?

GAAP Adjustments in International Accounting

Ipat International Ltd provided the following reconciliation from IFRS to US GAAP in its most recent annual report. ................................................................................................................Net Income Shareholders Equity As stated IFRS..............................................

Planning for Retirement Income

Starting with your current situation, describe what you must do to ensure an annual retirement income of $60,000 starting at age 65.