Explore BrainMass


Advanced Accounting Partnerships and Liquidations

1) Shrek, Donkey, and Fiona are partners in SDF Corporation, and share profits and losses in the ratio of 5:3:2, respectively. The partnership has cash of $10,000 and noncash assets of $90,000 when they decide to liquidate. Liabilities at the time of liquidation are $40,000, including a note payable to Fiona of $5,000. The partn

Journalizing Accounting Entries

See the attached file. The following transactions of My Dollar stores occurred during 2006 and 2007: **2006** Feb 3 - Purchased equipment for $10,000, signing a six-month, 9% note payable Feb 28 - Recorded the week's sales of $51,000, one-third for cash, and two-thirds on account. All sales amounts are subject to a 5% sa

Business Accounting for Manufacturing Company

Finlon Upholstery, Inc. uses a job-order costing system to accumulate manufacturing costs. The company's work-in-process on December 31, 2011, consisted of one job (no. 2077), which was carried on the year-end balance sheet at $156,800. There was no finished-goods inventory on this date. Finlon applies manufacturing overhead to

Stepdown Accounting

The Danville Manufacturing Company has two service departments and two producing departments. The following data are available for 2006. Service Dept. 1 Service Dept. 2 Producing 1 Producing 2 Department Costs $12,000 $8,000 $60,000 $70,000 Number of Transactions 6,00 0

Materials Price Variance: Robinson Enterprises

Robinson Enterprises purchased 56,000 pounds (cost = $420,000) of direct material to be used in the manufacture of the company's sole product. According the production specifications, each completed unit requires five pounds of direct material at a standard cost of $7.80 per pound. Direct materials consumed by the end of the per

Accounting Budget and variances with conclusion and reporting to management.

A manufacturing company produces a large variety of products within the Butler family of Products. They are produced in three finishing departments (A, B, C) which have identical assembly operations but package the products differently for different lines of business. Each finishing line packages units as either single unit of

Consignment Accounting for Tingey Industries

Tingey Industries sells merchandise on a consignment basis to dealers. The selling price of the merchandise averages 25% above cost of merchandise. The dealer is paid a 10% commission on the sale price for all sales made. All dealer sales are made on a cash basis. The following consignment sale activities occurred during 2013:

Job Cost Flows

Job Cost Flows The job cost sheet for 1,000 units of toy trucks is: Job Number 555 Date Started 4/13 Date Completed 6/18 Raw Materials Direct Labor Date Type Cost Qty. Amount Cost Hours Amount 4/13 565 $ 3 1,000 $3,000 $18 20 $ 360 5/24 889 1 4,000 4,000 12 10 120 6/18 248 2 1,000 2,00

Total Cost Assigned to Job

XYZ corporation has two departments, Machining and Assembly. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Machining Department bases its rate on machine hours and the Assembly Department bases its rate on direct labor cost. At the beginning of the year, the compan

Predetermined Overhead Rate Used in Packaging & Assembly Departments

Need some help on this, please show all work so I can save this for the future. I am very confused with accounting practices. Tanner Bay Inc. has two departments, Assembly and Packaging. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Assembly Department bases its

Downsizing and Fixed Costs

Industry downsizing has been a major part of the corporate world, even government agencies are downsizing. "covers the business of the federal government and its huge departments and agencies - dozens of which dwarf the largest institutions in the private sector" on its website. Read the assigned Governme

Overhaul Expenditures

Redline Publishers, Inc. produces various manuals ranging from computer software instructional booklets to manuals explaining the installation and use of large pieces of industrial equipment. At the end of 2013, the company's balance sheet reported total assets of $62 million and total liabilities of $40 million. The income stat

Profit Allocation

Day and Night formed an accounting partnership in 2008. Capital transactions for Day and Night during 2008 are as follows: (see attachment) Date Transaction Amount Day 1/1 Beginning balance $75,000 4/1 Withdrawal 18,750 6/1 Investment 37,500 11/1 Investment 18,750 Night 1/1 Beginning balance $37,500 7/1 Investment

Evaluating Allocation of Costs

Scenario: The sample company is an integrated oil company. It extracts oil from its many wells throughout the world and then refines the oil into gasoline and diesel fuel. The total (full) cost of extracting 500,000 barrels of oil from the ground is $5,000,000. Once refined, the oil yields 5,000,000 gallons of gasoline that

Goal Incongruence and Return on Investment.

a) What is goal incongruence? b) How can using the metric "return on investment" for performance evaluation lead to goal incongruence? c) What can a firm do to reduce goal incongruence caused by using "return on investment" for performance evaluation?

Discussion of the Theory of Constraints

Hi, I need some assistance with the following question: Question: In your own words, explain the 'Theory of Constraints'. As part of your answer, be sure to mention the basic assumptions underlying it, strengths of the method, and the weaknesses of the method.

Cost: net realizable method

A company processes a chemical, dx-1, through pressure treatment. The process has two outputs, A and B. The January costs to process dx-1 are $50,000 for materials and $100,000 for conversion costs. The outputs sell for a total of $250,000. The sales revenues from A are $200,000 of the total. Using the net realizable method, ass

Cost Allocation

A critic of cost allocation noted, "you can avoid arbitrary cost allocations by not allocating any costs." Please explain.

Preferred Stock Cash Dividend Calculations

In the equity section of Jeans Incorporated the following is listed: Preferred stock, 5% cumulative, 6,000 shares issued and outstanding $120,000 Common stock, 1$ par value, 36,000 shares issued $180,000 Retained earnings

Powell Company and Safety Chemical

Powell Company produces a single product. Its income statement under absorption costing for its first two years of operation follow. 2010 2011 Sales ($44 per unit) $ 968,000 $ 1,848,000 Cost of goo

Buy or Make Decision

Company A uses 12,000 units of a product in production each year. Presently, this component is purchased from an outside supplier at $9.50 per unit. There has been idle capacity in the factory that could be utilized to make this product. The costs associated with manufacturing the product internally rather than buying it from th

Bonds: After-tax returns

As a financial adviser to individual investors, your boss has asked you to write a memo to him analyzing a choice of two bonds for a client seeking to invest $350,000. The Florida-based client has a relatively high taxable income, and while she has an affinity for municipal bonds, she is looking for interesting fixed income alte

Western Manufacturing Company CVP variable absorption costing

(see template attached) Using the information about Western Manufacturing Company provided below, complete the following two tabs in this MS Excel Workbook: - Cost-volume-profit (CVP) Analysis prepared in February 20X1 regarding planned operations for month of March 20X1 - Contributio

Tax forms: Donna Harp

At the beginning of the current year, Donna Harp was employed as a cinematographer by Farah Movie, Inc., a motion picture company in Los Angeles, California. In June, she accepted a new job with Ocala Production in Orlando, Florida. Donna is single and her Social Security number is 223-77-6793. She sold her house in California o

Modified Accelerated Cost Recovery System

Problem 1 Suppose new instruments for a firm cost $18,000 with an additional installation fee of $2,000, both of which are depreciable. Complete the depreciation schedule shown below using the Modified Accelerated Cost Recovery System (MACRS) 3-year class. Year Rate Basis Depreciation 1 2 3 4 Proble

A company has 33,000 units - Resale or rework?

A company has 33,000 units of its sole product that it produced last year at a cost of $71 each. This year's model is superior to last year's and the 33,000 units cannot be sold for their regular selling price of $127 each. The company has two alternatives for these items: (1) they can be sold to a wholesaler for $45 each, or (2

Taylor Chains absorption costing flexible budget

Taylor Chains Taylor designs and manufactures high performance bicycle chains for professional racers and serious amateurs. Two new titanium chain sets, the challenger and the Tour, sell for $110 and $155, respectively. The following data summarize the cost structure for the two chain sets: Taylor uses an absorption costing

Selecting Accounting Method and Fiscal Year-End

Tom and Jerry are considering forming a partnership. Both taxpayers use the calendar year and are cash basis taxpayers. The partnership will not be a tax shelter. The partners are uncertain as to whether the partnership should use the cash or accrual method of accounting. Also, the idea of a tax deferral in the first year of ope

Regents Supply Estimated that Uncollectible accounts expense

Regents Supply completed the following transactions during 2008 and 2009: 2008 Dec 31 Estimated that Uncollectible accounts expense for the year was 3/4 of 1% on credit sales of $400,000 and recorded that amount. Dec 31 Made the closing entry for Uncollectible accounts Expense 2009 Jan 17 Sold inventory to Abe Gomez, $6