Manufacturing Overhead-multiple application bases. Staley Toy Co. makes toy flutes. Two manufacturing overhead application bases are used; some overhead is applied on the basis of machine hours at a rate of $7.20 per machine hour, and the balance of the overhead is applied at the rate of 250% of direct labor cost. Required:
If a company made a credit sales of $500,000 during 2008. Experience indicates that uncollectible -account expense is 1/2 of 1% of credit sales. At December 31s,2008, Company's account Receivable balance is $130,000 and Allowance for Uncollectibles stands at $1,600 before the year end adjustment. How would I go about recor
At December 31st, 2007, The Accounts Receivable balance of "Bogus Company" is $300,000. The Allowance for Doubtful Accounts has a $3,900 credit balance. "Bogus Company" prepares the following aging schedule for its accounts receivable. Age of Accounts: total balance 1-30 days
Le Monde Company is a manufacturer of chemicals for various purposes. One of the processes used by Le Monde produces HTP-3, a chemical used in hot tubs and swimming pools; PST-4, a chemical used in pesticides; and RJ-5, a product that is sold to fertilizer manufacturers. Le Monde uses the net realized value method to allocate jo
Answer the following multiple-choice questions: a) Which of the following could lead to cash flow problems? 1. Tightening of credit by suppliers 2. Easing of credit by suppliers 3. Reduction of inventory 4. Improved quality of accounts receivable 5. Selling of bonds b) Which of the following would not contribute to bankru
1. Barrick Company has established a flexible budget for manufacturing overhead based on direct labor-hours. Total budgeted costs at 200,000 direct labor-hours are as follows: Variable costs (total): Packing supplies $120,000 Indirect labor $180,000 Fixed costs (total): Utilities $100,000 Rent $
For the following problems, please see attached for full formatting of tables, etc. 1. The Cook Company has two divisions--Eastern and Western. The divisions have the following revenues and expenses: - Sales - Variable costs - Direct fixed costs - Allocated corporate costs Net income (loss) Eastern
Arrow Industries employs a standard cost system in which direct materials inventory is carried at standard cost. Arrow has established the following standards for the prime costs of one unit of product. (see chart in attached file) During May, Arrow purchased 160,000 pounds of direct material at a total cost of $304,000. T
I'm having problems in identifying the risk factors for Chemeq Ltd. --- Problem: You are the Senior Audit Partner of Cassidy and Sundance, Chartered Accountants. Your firm is one of the Big 4 accounting and audit firms in Australia and has significant experience in the audit of ASX listed companies and all industries. I
Recent changes brought on by Sarbanes-Oxley and the PCAOB have made the subject of how accounting standards are set both important and timely. Prepare a paper on the standard-setting process. Be sure to do the following: Describe authoritative sources of accounting information.
1. Explain why transfer prices based on total actual costs are not appropriate as the basis for divisional performance measurement. 2. Using the market price as the transfer price, determine the contribution margins for both the Mining division and the Metals division. 3. If Redstone Industrial Resources Company were to inst
Calculate the following performance measures for 20x1 for the Fairmont Division a. Return on investment (ROI) b. Residual income 2. Would the management of Fairmont Division have been more likely to accept the investment opportunity it had in 20x1 if residual income were used as a performance measure instead of ROI? (SEE A
Beverly Crusher Co. has accounts receivable of $14,000 at January 1, 2006, and $21,000 at December 31, 2006. Sales revenues for 2006 were $470,000.What is the amount of cash receipts from customers in 2006?
Prepare the operating activities section?indirect method. (SO 3) E14-3 The current sections of Blues Traveler Co. balance sheets at December 31, 2005 and 2006, are presented below. BLUES TRAVELER CO. Comparative Balance Sheets (partial) December 31, 2006
Net income of the organization is the standard by which many investors and lenders use to gage the success of the organization. Discuss the reasons why this figure can be deceiving and how the accounting profession has tried to structure the income statement to make this decision process more accurate. Is net income a standard f
Cerritos Circuitry manufactures electrical instruments for a variety of purposes. The following costs related to maintaining product quality were incurred in May. Training of quality control inspectors $31,500 Tests of instruments before sale $45,000 Inspection of electr
Milwaukee Metallurgy Corporation (MMC) has two divisions. The Fabrication Division transfers partially completed components to the Assembly Division at a predetermined transfer price. /The Fabrication Division's standard variable production cost per unit is $450. The division has no excess capacity, and it could sell all of its
Zen Company reports net income of $140,000 each year and pays an annual cash dividend of $50,000. The company holds net assets of $1,200,000 on January 1, 2001. On that date, Werry Co. purchases 40 percent of the outstanding stock for $600,000, which gives Werry the ability to significantly influence Zen. At the purchase date
A parent holding company sells shares in its subsidiary such that the parent now owns only 65 percent of the subsidiary and thus, the tax returns of the parent and its subsidiary can't be consolidated. The parent receives annual dividends from the subsidiary of $2,500,000. If the parent's marginal tax rate is 34 percent and if t
Hi need assistance with this practice problem Eban Wares is a division of a major corporation. The following data are for the latest year of operations: Sales................................................................................ $10,890,000 Net operating income.....................................
With the recent prevelence of corporate scandals in the United States recently, there have been many efforts made towards reform. You have been asked to evaluate the following proposal and debate it "Accounting firms should be liable to pay stockholders if they give a company a clean audit and it goes bankrupt within a ye
22. On January 1, 2004, Russell issues 10,000 additional shares of common stock for $15 per share. Chapman does not acquire any of this newly issued stock. How would this transaction affect the Additional Paid-In Capital account of the parent company? a. Has no effect on it. b. Increases it by $16,600. c. Decreases it by $3
Question: Bailey, Inc., buys 60 percent of the outstanding stock of Luebs, Inc., in a purchase that resulted in the recognition of goodwill. Luebs owns a piece of land that cost $200,000, but was worth $500,000 at the date of purchase. What value would be attributed to this land in a consolidated balance sheet at the date of tak
21. Jefferson, Inc., purchases Hamilton Corporation on January 1, 2004. Immediately after the acquisition, the two companies have the following account balances. Hamilton's equipment (with a five year life) is actually worth $450,000. Any goodwill is considered to have an indefinite life. Jefferson Hamilton Current assets .
What is the appropriate accounting treatment for the value assigned to in-process research and development acquired in a business combination? a. Always expense upon acquisition. b. Always capitalize as an asset with future economic benefit. c. Expense if there is no alternative use for the assets used in the research and d
Why do we assign account numbers to accounts and in what format or listing we assign them? Example: a) inventory (d) Withdrawals b) Accounts Payable (e) Service Revenue c) Capital (f) Depreciation Expense Here are the list of numbers t
See attached file Calculate earnings per share and comment on the trend. The Dicker Company has the following pattern of financial data for Years 1 and 2: Year 1 Year 2 Net Income $40,000 $42,000 Preferred stock (5%) $450,000 $550,000 Weighted average number of Common shares outstanding
Do you think it is necessary to have two different regulatory boards, FASB and GASB, for accounting and financial reporting? Why? What would the benefits be of having one regulatory board and do you think the benefits outweigh the drawbacks?
Cost-Volume Analysis and Return on Investment (ROI) (LO1) Images.com is a small Internet retailer of high-quality posters. The company has $800,000 in operating assets and fixed expenses of $160,000 per year. With this level of operating assets and fixed expenses, the company can support sales of up to $5 million per year.
Analyze the relationship between GASB & FASB. Prepare a summary on the following points: 1. Explain the objectives of the two boards - how they are similar and how they are different. 2. Describe the role of government regulation in the application of accounting standards and reporting requirements. 3. Include a descrip