(Assumptions, Principles, and Constraints) Presented below are the assumptions, principles, and constraints. 1. Economic Entity Assumption 2. Going concern assumption 3. Monetary unit assumption 4. Periodicity assumption 5. Historical cost principle 6. Fair value principle 7. Expense recognition principle 8. Full di
4-31 The Solomon Company uses a job-costing system at its Dover, Delaware, plant. The plant has a Machining Department and a Finishing Department. Solomon uses normal costing with two direct-cost categories (direct materials and direct manufacturing labor) and two manufacturing overhead cost pools (the Machining Department, w
Looking for some ideas for the following question. Commercial account servicing. Setting benchmarks / service standards for how accounts are handled. Monitoring quality control. Devising benchmarks for efficiency and effective use of IT systems in the "backroom" activities.
White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor cost. At the beginning of the year, the compan
Estimated cost and operating data for three companies for the upcoming year follow: Company X Company Y Company Z Direct labor-hours 80,000 45,000 60,000 Machine-hours 30,000 70,000 21,000 Direct materials cost $400,000 $290,000 $300,000 Manu
Research guestions For questions #1 - #3, you should consider yourself as the tax professional. A client has come to you with the situation described. You should then advise the client on how best to proceed. For questions #1 - #3, I anticipate that you should be able to successfully complete the research by referring to r
Can you help me get started with this assignment? P&J Corporation is to be owned equally by Pete and Joe. The corporation will be formed by exchanging the assets and liabilities of the P & J Manufacturing Partnership for all of the corporation's stock on September 1 of the current year. Both shareholders use the calendar year
Material and Labor Variances Consider the following data: Costs incurred: actual inputs × actual prices incurred Direct Materials $154,000 Direct Labor $77,800 Actual inputs × expected prices
I need step by step in solving these problems because I don't understand it. I'm doing problems of Managerial accounting but I can't solve these problems, I don't understand, so I need you to explain to me the solution. Cases 6-1: Artisans Shirtcraft Background Artisans Shirtcraft manufactures and sells hand-painted shirts
As part of an effort to increase sales and profit margin. Music Makers' management is adopting a transfer pricing plan. The copying and packaging departments have been placed under divisional managers. As an incentive to cut costs, each division is expected to earn a gross margin of 10% on its divisional costs. The copying divis
"The best management accounting system provides managers with all the information they would like to have." Do you agree with this statement? Why or why not.
Expedia provides travel services on the Internet. 2002 was an important year for Expedia as it reported positive operating income after three years of operating losses. In the first quarter of 2001, Expedia reported an operating loss of $19 million on sales revenue of $57 million. In the first quarter of 2002, sales revenue had
Tempro, inc, uses a standard cost accounting system. Variances for the year ended December 31, 2005 were as follows: Material Price Variance Unfavorable Material usage variance favorable labor rate variance favorable labor efficiency variance unfavorable Managers at Tempro are consideri
1. In what significant ways do the FASB standards differ from those of the GASB with respect to the Statement of Cash Flows? 2. For the following situation, indicate whether the organization should recognize the described contributed services as revenue (offset by a corresponding expense). Briefly justify your response or
Avatar Company was formed on January 1, 2007, and began constructing a new plant. At the end of 2007, its auditor discovered that all expenditures involving long-term assets had been debited to an account called Fixed Assets An analysis of the Fixed Assets account, which had a year-end balance of $2,644,972, disclosed that it co
Identify the tax issue or issues suggested by the following situations and state issue in the form of a question.(need three questions) Ellie has operated a sole proprietorship for six years during which net profit has been stable and Ellie's marginal tax rate has been a constant 25 percent. Ellie's projects that her profit
Ms. Z is a cash basis taxpayer who owns and operates a clothing store as a sole proprietor. She wishes to retire after holding a liquidation sale. She would like to avoid ordinary income from the sale of the inventory. Ms. Z shuts her store for one month and then begins the sale. She then suggests to her tax preparer that he
Suppose that Congress recently amended the tax law to provide for a maximum 12% rate on interest income from U.S. savings bonds. Compute the tax savings from this preferential rate for: a. Ms. E., who has a 15% marginal rate on ordinary income and earned $290 interest on her investment in U.S. savings bonds. b. Mr. K., wh
Please show all calculations. Gregly Company, which has a 33% marginal tax rate, plans to make an investment that should generate $300,000 annual cash flow/ordinary income. Instead of making the investment directly, Gregly could form a new taxable entity (L'il Greg) to make the investment. L'il Greg's marginal tax rate on
Please help with the following accounting problem. Provide at least 200 words in the solution. Mr. C comes to you for tax planning advice. He is considering an investment, but does not know whether to use his average (average tax rate 8%)or his marginal rate (marginal tax rate 10%) in the analysis. Advise Mr. C on this issue
1. Sir Ariel, a star college basketball player, received a contract from the Western Timberlines to play professional basketball. The contract calls for a salary of $300,000 a year for four years, dependent on his making the team in each of those years. Should his contract be considered a liability and recorded on the books of t
1. What accounting rule is violated by the direct charge-off method of recognizing noncollectable accounts? Why? 2. In what ways is Allowance for Noncollectable Accounts similar to Accumulated Depreciation? In what ways is it different? 3. Under what circumstances would an accrual of interest income on an interest-bearing
1. Break-Even Analysis The Beach Street office of Getwell Clinics specializes in the treatment of three types of patients: DRG M, DRG J, and DRG P. The operating statistics for patient care of these three DRGs for last year are shown below. They include patient volume proportions, average charges, average variable costs, and
Harangue Company is a large retail furniture company which operates in two adjacent warehouses. One of the warehouses is a showroom, and the other is used to store merchandise. On the Night of April 20, 2007, a fire broke out in the storage warehouse and destroyed the merchandise stored there. Fortunately, the fore did not reach
Chiappetta, Larson, Wild, Fundamental Accounting Principles, 18th Ed., McGraw-Hill 2007, Original work published 1976). (Wild, 2007) Discuss how accrual accounting enhances the usefulness of financial statements.
Recognition of asset impairment is an accounting mandate that is alleged to improve the relevance and reliability of financial information. Required: Discuss the valuation relevance of asset impairment recognition. (Cite related research).
Boating, Inc., assembles custom sailboats from components supplied by various manufacturers. The company is very small and its assembly shop and retail sales store are housed in a boathouse in Charleston SC. Below are listed some of the costs that are incurred at the company. For each cost, indicate whether it would most like
1. Geoff's Golf Clubs is considering purchasing a small firm in the same line of business. The purchase would be financed by the sale of common stock or a bond issue. The financial manager needs to evaluate how the two alternative financing plans will affect the earnings potential of the firm. Total financing required is $4.5 mi
I have to choose two publicly traded companies and compute liquidity ratios and solvency ratios. I have chosen Dell and HP as my companies and the financial information for the FY2008 has been attached for each company. The list below is what I have to derive from the information. Compute the following liquidity ratios for
Please help with the following problem. The following unit data were assembled for the heating process of Morgan Processing, Inc., for the month of August. Direct materials are added at the beginning of the process. Conversion costs are added uniformly over the production process. The company uses the FIFO process costing me