JPB Group is a consulting firm specializing in mergers and acquisitions. In addition to the three partners, the firm employs nine consultants who work directly with clients. The average budgeted compensation for the twelve professionals is $130,000. Each consultant is budgeted at 1,600 billable hours per year. All professional l
Alpha Company makes three joint products: products A, B, and C. For each batch, the materials cost is $8,000, direct labor cost is $2,000, and manufacturing overhead is $5,000. From each batch, the company makes 2,000 pounds of A, 1,200 pounds of B, and 800 pounds of C. (a) What are the total joint costs for each batch of the
The following income statement was prepared by Edwards Company for 2007: Sales $100,000 Cost of goods sold $58,500 Gross margin $41,500 Selling and administrative expense $25,000 Interest expense $3,000 Total operating expenses $28,000 Income before taxes $13,500 Income tax expense $4,050 Net income
The following information is available for K Co. for 2005. Inventory 1/1/05 130,000 Inventory 12/31/05 120,000 Cost of Goods Sold, 2005 450,000 Accounts Payable 1/1/05 70,000 Accounts Payable 12/31/05 92,000 (A) What amount of cash was paid for the purchase of merchandise? (B) How will the amount computed in (a) be
Please help answer the following problems. Provide detailed solutions. On Jan 1 2005, J Company purchased equipment for 95,000. J co. paid 2,000 to have the machine installed. The equipment is expected to have a 5 year useful life and a salvage of 7,000. A.) Compute the depreciation expense for 2005 and 2006 using straigh
In the first year of operations, 2008, RRS recognized 220,000 of service revenue on account. The ending accounts receivable balance was 45,000. RRS estimates that 3% of sales on account will not be collected. Assume there were no other transactions affecting accounts receivable. A.) What amount of cash was collected in 2008?
1.) Poxahatche Products provided the following selected information about its consumer products devision for 2007: Desired ROI=10% Net Income=$150,000 Residual Income=$50,000 Based on this information, the division's investment amount was: A.) $700,000 B.) $1,000,000 C.) $4,000,000 D.) $20,000,000 2.) Picard Com
I am having difficulty with this problem. You have the following data: return on equity = 15% earnings before taxes = $30,000 total asset turnover = .80 profit margin = 4.5% tax rate = 35% What is the return on assets?
Can you talk about or discuss factors that may have motivated defendants to commit fraud within Adelphia Communcations?
Calculate the break-even for a Widget company given the following information: Sales Price Variable Cost per unit Fixed Costs Widgets $800 $550 $77,000 Problem 2 Based upon the information needed in problem 1, how many widgets must be produced to earn a profit of $50,000?
Elegance Company makes fine jewelry that it sells to department stores throughout the United States. Elegance is trying to decide which of two bracelets to manufacture. Elegance has a labor contract that prohibits the company from laying off workers freely. Cost data pertaining to the two choices follow.
Dester Manufacturing Company makes a product that it sells for $50 per unit. The company incurs variable manufacturing costs of $20 per unit. Variable selling expenses are $5 per unit, annual fixed manufacturing costs are $187,000, and fixed selling and administrative costs are $113,000 per year. Determine the break even po
Anne Teak, the financial manager of a furniture manufacturer, is considering operating a lock-box system. She forecasts that 400 payments a day will be made to lock boxes with an average payment size of $2,000. The bank's charge for operating the lock boxes is $.40 a check. The interest rate is .015 percent per day. 1. If the
A manufacturer makes a single product. When comparing this year's income statement with last year's, why is net income different for the same level of sales: Cost have not changed at all, but income has. What was done right this year? The statements, both prepared using absorption costing, look like this:
Pamello, Inc, an engineering consulting firm, uses the cash method of accounting. Compute the amount of Pamello's current year deductions for the five transactions. See attached file for full problem description.
Given summary information about Allen's 2006 income tax return, what is the amount of AMT adjustments related to itemized deductions? What is the AMT liability for 2006? See attached file for full problem description.
I need to identify at least on recent FASB position/proposal/pronouncement which would be of particular interest to the Cola industry, specifically Pepsi or Coca-Cola. I don't need a great deal of information, only to get me started so I may further research. Thank you.
In the Scott Fane opinion, Justice O'Connor alluded to "incremental commercialization" within professions. Identify examples of incremental commercialization within the public accounting profession in recent years. How, if at all, has an increasing emphasis on the commercial aspects of public accounting affected the profession?
You have been studying 'fixed' costs. You learned that a number of 'fixed' costs are actually mixed costs (variable and fixed). Write a two paragraph memo to your manager explaining some of the cost estimation techniques that can help determine the fixed and variable portion of each mixed cost (such as utility costs and maintena
One member of your team emailed you and stated that she believes Claire's Antiques should work to convert the fixed costs to variable costs. She wants to know if this is a good idea. Why or why not? If not, then when would it be a good idea? Reply to your friend with the answers to her questions. In your reply, identify the type
Meg and Walt are going to be married in three months. Meg has owned and lived in her home for 42 years, and Walt has owned and occupied his home for 35 years. They both have listed their homes for sale. They anticipate the sales results will be as follows: Meg's *Selling price $450K *Selling expenses $40K *Adjusted basis $
Biro Manufacturing started 2005 with the following account balances. Cash 800 Raw Materials Inventory 960 Work in Process Inventory 640 Finished Goods Inventory (320 inits @ $5)
Pike Skatedboard Co. makes specialized skatedboards. Pike seeks to be the leader in designs for skateboards and produces designs in lot sizes of 1,000 units Pike uses job order costing in conjunction with normal costing to measure and assign unit cost. The following information is provided regarding the company's two product
Chapter 16 9-14 9. What is the basic C-V-P equation? What is a more detailed version of this equation? 10. What is the contribution margin, and why is it important for managers to know the contribution margins of their products? 11. How much will profits increase for every unit sold over the break-even point? 12. W
Indicate whether debit or credit decreases the normal balance of each of the following accounts: office supplies-repair services revenue-interest payable-accounts receivable-salaries expenses-owner capital-prepaid insurance-buildings-interest revenue-owner withdrawals-unearned revenue-accounts payable. Identify whether a de
Importance of Manufacturing Overhead Allocation The percentages of product costs comprised by direct materials, direct labor, and manufacturing overhead for three companies are as follows: Company A Company B Company C Direct materials . . . . . . . . . . . . . .
The C-V-P Equation The company sells lawnmowers for $895 each. The variable cost per lawnmower is $520. The company's monthly fixed costs are $84,500. Using the C-V-P equation, compute the amount of profit the company will have for a month in which the company sells 375 lawnmowers. Break-Even Units The company sells shovels
Prepare the necessary journal entries to record the following transactions in 2006 for Jano Company. March 1 Discarded old store equipment that originally cost $24,000 and had a book value of $6,000 on the date of disposal. Assume depreciation on the equipment has already been recorded for the current year. July 31 Sold
1.) The accounting records disclosed the following cost information for 2007: Direct materials $30,000 Direct labor $40,000 Fixed Manufacturing Overhead $50,000 Variable Manufacturing Overhead $10,000 Assume the company produced 10,000 units of in
In their review of the public accounting profession, Lou Harris and Associates warn that an audit report too often is viewed as a "certificate of health" for a company: The report states: The most serious consequences stemming from such a misunderstanding are that the independent auditor can quickly be portrayed as the force