1. What is a predetermined overhead rate and how is it computed? 2. What do you feel is the best allocation base to use for the denominator in the predetermined overhead rate calculation and why? 3. What factors would you consider in choosing the allocation base?
Portable Enterprises produces two lines of mobile homes: double-wide and single-wide. Unit cost and revenue data pertaining to each product are shown below: Double Wide Single Wide Selling price $70,000
What is the correlation between sales and use of accounting resources in your opinion?
Company C has a corporate location in Chicago, IL and has decided to expand its operations to Omaha, NE in the following six months. CFO, Joe Smith, has identified the cash that is necessary to start such an expansion. Joe has itemized all of the transactions and documented the transactions against the potential growth that the expansion would precede. He then did an analysis of these transactions and the costs that were incurred and structured a trial balance. Once the expansion was underway, Joe began to post the actual entries in his ledger until he reached the end of the year. Discuss what stage of the accounting cycle Joe Smith and Company C are in and identify the complete stages. What measures should Joe take to complete the accounting cycle?
Company C has a corporate location in Chicago, IL and has decided to expand its operations to Omaha, NE in the following six months. CFO, Joe Smith, has identified the cash that is necessary to start such an expansion. Joe has itemized all of the transactions and documented the transactions against the potential growth that the
When would you advise a firm to use direct intervention to set transfer prices?
How are book and tax differences presented in corporate tax reports.
Linden Corporation is preparing its December 31, 2010, financial statements. Two events that occurred between December 31, 2010, and March 10, 2011, when the statements were issued, are described below. A liability, estimated at $160,000 at December 31, 2010, was settled on February 26, 2011, at $170,000. A flood loss of $8
The questions in this exercise are based on Dell, Inc, To answer the questions, you have to download Dell's 2005 Form 10-K by going to www.sec.gov/edgar/searchedgar/companysearch.html Input CIK code 826083 and hit enter. In the gray box on the right-hand side of your computer screen define the scope of your search by inputtin
Provide steps to complete the problem: During April, Dryden Company's material purchased amounted to 6,500 pounds at a price of $7.40 per pound. Actual costs incurred in the production of 2,000 units were as follows. Direct Labor: $118,035 ($18.30 per hour) Direct material: $31,820 ($7.40 per hour) The standards for
Describe the three basic types of responsibility centers and explain the responsibility accounting for : cost center, profit center and Investment center
The press report carried the following news item: General Motors, Ford, and Chrysler are expected to post losses on fourth-quarter operations despite sales gains. Automakers' revenues are based on factory output rather than retail sales by dealers, and last quarter's sales increases were from the bulging inventories at the end o
Sylvia, a dentist with excellent skills as a carpenter, started the construction of a house that she planned to give to her son as a surprise when he returned from Saudia Arabia, where he is serving in the military. She began construction on March 23, 2005, and finished the house on July 10, 2006, at a total cost of $70,000. Her
In assessing errors, a CPA must consider its materiality, since immaterial errors do not necessarily require correction. How do you define materiality as a CPA in evaluation of errors? What are some considerations?
At a sales volume of 38,000 units, Tirri Corporation's property taxes (a cost that is fixed with respect to sales volume) total $733,400. To the nearest whole dollar, what should be the total property taxes at a sales volume of 37,200 units? (Assume that this sales volume is within the relevant range.) $725,680
The Medical Center has a single operating room that is used by local physicians to perform surgical procedures. The cost of using the operating room is accumulated by each patient procedure and includes the direct materials costs (drugs and medical devices), physician surgical time, and operating room overhead. On November 1 of
Bullock Furniture Company manufactures furniture. Bullock uses a job order cost system. Balances on June 1 from the materials ledger are as follows: Fabric $18,400 Polyester filling 5,500 Lumber 41,200 Glue 1,800 The materials purchased during June are summarized from the receiving reports as follows: Fabric $
Attached #1 The following budgeted and actual data are for the operations of the All-Fixed Company. All-fixed uses budgeted production as the denominator level and writes off any production volume variance to cost of goods sold. 2008 2009 Sales 10,000 tons
see attached Nordstrom Inc. operates department stores in numerous states. Selected financial statement data for the year ending January 29, 2012, are as follows. NORDSTROM, INC. Balance Sheet (partial) (in millions) End-of-Year Beginning-of-Year Cash and cash equivalents $ 482 $ 369 Receivables (net)
On June 30, 2011, the Esquire Company sold some merchandise to a customer for $30,000. In payment, The 6% rate is appropriate in this situation. 1. Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of goods sold), the December 31, 2011 interest accrual, and the March
Johnson Company uses the allowance method to account for uncollectible accounts receivable. Bad debit expense is established as a percentage of credit sales. For 2011, net credit sales totaled $4,500,000, and the estimated bad debt percentage s 1.5%. The allowance for uncollectible accounts had a credit balance of $42,000 at the beginning of 2011 and $40,000, after adjusting entries, at the end of 2011; 1. What is the bad debt expense? 2. Determine the amount of accounts receivable written of during 2011. 3. If the company uses the direct write off method, what would the bad debt expense be for 2011?
Johnson Company uses the allowance method to account for uncollectible accounts receivable. Bad debit expense is established as a percentage of credit sales. For 2011, net credit sales totaled $4,500,000, and the estimated bad debt percentage s 1.5%. The allowance for uncollectible accounts had a credit balance of $42,000 at
"An item is relevant if it is different between or among decision alternatives. That item is not relevant if it is the same between or among decision alternatives." We have more information available today than ever before ... Yet that is not always to our benefit, for much of the information may have questionable accurac
See attached. The current sections of Leach Inc.'s balance sheets at December 31, 2010 and 2011, are presented here. Leach's net income for 2011 was $152,760. Depreciation expense was $24,000. 2011 2010 Current assets Cash $105,170 $99,170 Accounts receivable 110,300 88,520 Inventory 157,
1. Healing Touch manufactures massage chairs with the following standard cost structure: Standard Cost Sheet: Massage Chair Metal tubing ¨ 6 meters @ $3 $ 18.00 Leather 2 square meters @ $7 $ 14.00 Padding 3 kilograms @ $4 $ 12.00 Direct labor 4 hours @ $15 $ 60.00 Total standard cost $104.00 During th
I was wondering if an expense related to 2009 Ad Valorem Tax Appeal would be included in a capitalized cost of a construction asset?
Consider each of the following situations independently of each other. 1.Current ratio increases from one period to the next. 2.Accounts receivable turnover increases from one period to the next. 3.Accounts payable turnover increases from one period to the next. Question 1 Provide one example of when the underlyi
See the attached file in proper format GIFT TAX FORM 709 Dale C. and Andrea M. Dixon (Social Security numbers 123-45-6789 and 123-45-6788) live at 912 Mockingbird Lane, Pine Bluff, AR 71602. Both are active in real estate ventures and in the past have developed and owned numerous shopping centers in various parts of Arkans
Mary owns several rental properties and would like to shift some of the income to her daughter. Mary tells her tenants to send their rent checks to her daughter and the daughter will report the rental income on her tax return. Will this shift the income from Mary to her daughter? Why or why not?
Lattrell recently used his Delta Skymiles to purchase a free roundtrip tocket to Milan, Italy (value $1,200). The frequent flyer miles used to purchase the ticket were generated from Lattrell's business travel as a CPA. Latrell's employer paid for his business trips and he was not taxed on the travel reimbursement. How much income, if any, does Latrell have to recognize as a result of purchasing an airline ticket with Skymiles earned from business travel.
Lattrell recently used his Delta Skymiles to purchase a free roundtrip tocket to Milan, Italy (value $1,200). The frequent flyer miles used to purchase the ticket were generated from Lattrell's business travel as a CPA. Latrell's employer paid for his business trips and he was not taxed on the travel reimbursement. How much
attached problem 1. The Waterford Wax Company had the following current account activity last year. Beginning Ending Beginning Ending Cash $ 160 $ 333 Accts Pay $722 $2,084 Accts Rec 1,875 3,810 Accruals $217 456 Inventory 438 2,676 Curr Assets $2,473 $6,819 Curr Liab. $939
The American Institute of Certified Public Accountants sets standards and rules for the CPA profession in five major areas. Of these five, which is the most important and why?