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Accounting

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.

Taxation questions

16) Anne LLC purchased computer equipment (5-year property) on August 29 with a basis of $30,000 and used the half-year convention. During the current year, which is the fourth year Anne LLC owned the property, the property was disposed of on January 15. What is the maximum depreciation expense? A. $1,728 B. $1,874

Costs of Good Manufactured and Sold

Gravois, Inc., incurred the following costs during June: Selling expenses $ 158,375 Direct labor 283,140 Interest expense 41,065 Manufacturing overhead, actual 204,750 Raw materials used 460,980

Operating Income Under Absorption Versus Variable Costing

Precision Numbers, Inc., manufactures pocket calculators. Costs incurred in making 25,000 calculators in April included $85,000 of fixed manufacturing overhead. The total absorption cost per calculator was $12.50. Required: (a) Calculate the variable cost per calculator. (Do not round your intermediate calculations. Round yo

How to Value Common Stock & Return Income

Please help me with an accounting assignment by answering these questions: a. Explain the methods of how to find the value of common stock. b. Describe the return (income) an investor can receive from common stock. Thank you.

Payment Amounts for Car Loans and Mortgages

The case is designed to determine and evaluate the payment amount of a car loan and a mortgage, based on your income. If you prefer, you may assume that your household income is $48,000 per year or $4,000 per month. Based on your income, you may spend 28 percent of your monthly income on housing and 10 percent on a car loan. You

Accounting and Calculating Standard Variances

1. Using the data in the attached file, prepare a schedule of total standard manufacturing costs for the 7,800 output units in January 2012. 2. For the month of January 2012, compute the following variances, indicating whether each is favorable (F) or unfavorable (U): a. Direct materials price variance, based on purchases b.

Assessing the Value of Mortgage Loans

Another student in your accounting class says that, as she understands it, most long-term liabilities on the balance sheet are viewed negatively by potential investors. Discuss when this might be true and when it might not be. You and Frank are studying for an upcoming accounting exam. Frank says, "Mortgage loans are the best

Accounting II: Long-lived Assets

At least 600 words. What is included in the cost basis of a long-lived asset? Explain for at least two types of such assets. What sources are reliably used to estimate an asset's useful life? How is the appropriate depreciation method determined? Has the concept of asset impairment changed accounting for long-lived a