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Fundamental Accounting Principles

Fundamental Accounting Principles Which of the following inventory costing methods will always result in the same values for ending inventory and cost of goods sold regardless of whether a perpetual or periodic inventory system is used? Answer FIFO and LIFO. LIFO and weighted-average cost. specific identification

Market vs Book Value

The Newburg Flyers operate a major sports franchise from a bldg in downtown Newburg. Built in 1940 at a cost of $5,000,000 and is fully depreciated, so that it shows a value of $1 on the balance sheet. the land the bldg is on was purchased in 1935 for $10,000 and is valued at this amount for bal sheet purposes. The franchise

Yount and Lance Division of Partnership Income

Please see the attachment. Division of Partnership Income Yount and Lance have a partnership agreement which includes the following provisions regarding sharing net income and net loss: 1. Since Yount will work only part time in the partnership, he will be allocated a salary allowance that is one half the salary allowance


Selected financial data of ABCand XYZfor 2005 are presented here (in millions). ABC XYZ Corporation Stores, Inc. Income Statement Data for Year Net sales $45,845 $287,042 Cost of goods sold 31,561 221,290 Selling and administrative expenses 10,480 51,354 Interest expense 570 986 Other inc

Weighted Average Common Shares

The income statement for Christensen, Inc., appears below. CHRISTENSEN, INC. Income Statement For the Year Ended December 31, 2008 Sales $425,000 Cost of goods sold 243,000 Gross profit 182,000 Expenses (including $18,000 interest and $14,600 income taxes) 107,300 Net income $74,700 Additional informati

Transactional Analysis for Cooper, Inc

Cooper, Inc., experienced the following events during 2004. 1. Acquired $55,000 cash from the issue of common stock. 2. Paid $15,000 cash to purchase land. 3. Borrowed $5,000 cash from First Bank. 4. Provided services for $21,000 cash. 5. Paid $1,500 cash for utilities expense. 6. Paid $11,000 cash for other operating expe

Allocating Service Department Costs

Allocating Service Department Costs Armstrong Industries produces electronic equipment for the marine industry. Armstrong has two service departments (maintenance and computing) and two production departments (assembly and testing). Maintenance costs are allocated on the basis of square footage occupied, and computing costs ar

Divine Cheesecake Shoppe: overhead rate, total unit cost

Activity-Based Costing The Divine Cheesecake Shoppe is a national bakery that is known for its strawberry cheesecake. They also make 12 different kinds of cheesecake as well as several other types of bakery items. They have recently adopted an activity-based costing system to assign manufacturing overhead to products. The fo

Business Combination

Which one of the following is a characteristic of a business combination that should be accounted for as an acquisition? The combination must involve the exchange of equity securities only. The transaction establishes an acquisition fair value basis for the company being acquired. The two companies may be about the same siz

Calculating Material and Labor Variances

Calculating Material and Labor Variances Star Band Uniforms uses a standard costing system. The standard material and labor costs for producing a marching band hat is as follows: Materials (0.70 yards × $10.00) $7.00 Direct labor (0.80 hours × $12.50) $10.0 During May, the company produced 3,000 band hats; 3,50

Calculate the credit for child and dependent care expenses

Dabney and Nancy are married, both gainfully employed, and have two children who are 3 and 6 years old. Dabney's salary is $35,000 while Nancy's salary is $40,000. During the year, they spend $7,000 for child care expenses that are required so both of them can work outside of the home. Calculate the credit for child and d

Fixed Asset

A fixed asset typically goes through the life cycle of acquisition, usage, and disposal. For each of these stages of the life cycle, discuss one key accounting issue related to a fixed asset the company must address.

Starting a Business

Solve the problems: Application Practice Answer the following questions. Use Equation Editor when writing mathematical expressions or equations. First, save this file to your hard drive by selecting Save As from the File menu. Click the white space below each question to maintain proper formatting. 1. You have

Accounting Cost Allocation Process

Cost Allocation Process Apex Company's Copy Department, which does almost all of the photocopying for the Sales Department and the Administrative Department, budgets the following costs for the year, based on the expected activity of 6,000,000 copies: Salaries (fixed) $94,300 Employee benefits (fixed) 15,400 Depreciati


P11-3B John's Drug Store has four employees who are paid on an hourly basis plus time-and-a-half for all hours worked in excess of 40 hours a week. Payroll data for the week ended February 15, 2010, are presented below: Employees: Hours Worked: Hourly Rate: Fed Inc Tax Withholdings: United Fund: T

Tax Issues Identified

Identify the tax issue or issues suggested by the following situations and state each issue in the form of a question.(need two questions for each situation) 1.Guenther is researching a tax issue involving the deductibility of costs to remodel an office building. He has found several authorities permitting such costs to be de

Applications of Accounting Concepts: Match concept to action

An accountant for a company makes the assumptions or performs the activities listed below. Match which of the following concepts of accrual accounting most directly relates to each assumption or action: a) Periodicity b) Going concern c) Matching rule d) Revenue recognition e) Deferral f) Accrual 1. In estimating the

Question about Variance calculations

Part A Rapache Clothiers is a small company that manufactures tall-men's suits. The company has used a standard cost system. In May 2008, 11,200 suits were produced. The following standard and actual cost data applied to the month of May when normal capacity was 14,000 direct labor hours. All materials purchased were used.

Discuss four Accounting Regulatory Bodies, and organization's compliance.

Write a paper in which you examine at least four accounting regulatory bodies and discuss how an organization complies with the standards of the regulatory bodies you selected. This must be completed using original work. Cite at least two references. Format your paper according to APA standards.

Should the factory produce simple of premium cola?

A factory processes raw honey into syrup and "simple" cola. A batch consists of 10,000 gallons of honey, costing $7,000. Processing costs are $40,000, and results in 8,000 gallons of syrup and 2,000 gallons of "simple" cola. Raw material and processing costs are allocated to the two products (Syrup and "Simple" Co

Provide some examples of accounting estimates

1-Provide some examples of accounting estimates. What is the "preferred" approach for changes in accounting estimates? 2-What is the proper treatment for reporting a change in entity? 3-In recent years, the Wall Street Journal has indicated that many companies have changed their accounting principles. What are the major reason