4. Mercer has three product lines in its retail stores: books, videos, and music. Results of the fourth quarter are presented below: Books Music Videos Total Units sold 1,000 2,000 2,000 5,000 Revenue $22,000 $40,000 $23,000 $85,000 Variable departmental costs 17,000 22,000 12,000 51,000 Direct fixed c
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See the attached file. 3. Coyle Company manufactured 6,000 units of a component part that is used in its product and incurred the following costs: Direct materials $35,000 Direct labor 15,000 Variable manufacturing overhead 10,000 Fixed manufacturing overhead 20,000 $80,000 Another company has offered to sell
2. Badden Company needs a cash budget for the month of April, 2006. The company's controller has provided you with the following information and assumptions: a. The April 1, 2006 cash balance is expected to be $11,000. b. All sales are on account. Credit sales are collected over a three-month period--50 percent in the month of
1. Tom and Linda are married taxpayers who file a joint return. They have itemized deductions of $11,750 and four exemptions. Assuming an adjusted gross income of $40,000, what is their taxable income for 2010? 2. Compute Marie's taxable income for 2010, assuming she is single and claims two dependent children. Her adjuste
Given the long tax history of this country, why do you think our tax laws need to be tweaked on a continual basis? Would a flat tax solve the problem or create a new one?
Absorption Income versus Contribution Margin Income Can you give specific benefits to be derived from using the information from computing gross profit on sales as opposed to contribution margin? Is net income always going to be the same regardless of the accounting approach? Why don't we use the contribution margin format
Please help with questions in the following attachment. 1. Company A begins business this year making airplane propellers. At the end of 2005, 750,000 lbs. of raw materials has been with 400,000 propellers produced. The total value of these propellers was $450,000. The material costs were $200,000 with the rest being co
See attached. Split off Point and Estimated net realizable value Raw materials are put into production in Department X, and at the end of processing in this department, 3 products appear. Product A is sold at the split-off point with no further processing. Products B and C require further proces
There have been some discussions about the possibility of IRS applying only a flat tax rate in the future to every individual's income in order to calculate the individual's share of income tax. Share your opinion about this plan with class and explain why you do or do not like this plan.
** Please see the attached file for the requisite financial statements ** SAC has developed revolutionary manufacturing techniques utilizing its new spark plug manufacturing technology to offer special-order spark plugs for the auto racing industry. The company is currently using process costing for its spark plugs but is con
The Princeton Company uses flexible budgets and a standard cost system. â?¢ Direct-labor costs incurred, 12,000 hours, $150,000 â?¢ Variable-overhead costs incurred, $37,000 â?¢ Fixed-overhead flexible-budget variance, $1,600, favorable â?¢ Finished units produced, 1,800 â?¢ Fixed-overhead costs incu
In its most recent financial statements, Newhouse Inc reported 50 million of net income and 810 million of retained earnings. The previous retained earnings were 780 million. How much in dividends was paid to shareholders during the year? The Talley Corporation had a taxable income of 365,000 from operations after all operati
Explain the accounting issues and methods for the following: 1. cash, inventory, and accounts receivable. Include a discussion for how inventory costing assumptions influence the resulting accounting numbers. 2. buildings and equipment. Include a discussion for how the depreciation schedule chosen influences the resulti
See attached file for clarity. Following is a comparative balance sheet for WorldView International Corporation: WorldView International Corporation Balance Sheet December 31, 2008 and 2007 2008 2007 Current assets Cash $ 10,000 $ 5,000 Short-
Go to www.irs.gov or http://www.lexisnexis.com/ to find current tax legislation. Identify and summarize a current proposed tax legislation change or tax bill. Your summarization should include an APA reference page.
Accounting 3 Problems Short term business decisions,capital investments, cost-volume profit analysis
1. The long distance company that you use charges $5.00 per month and $0.10 per minute per call. If your current bill is $25.00, how many minutes did you use? a. 250 minutes b.100 minutes c.200 minutes d.150 minutes 2. Jenny was reviewing the water bill for her doggy day spa and determined that her highest bil
Critiquing a Cost Report for Frank Weston (Jim Smith) of Freemon Corporation's Machining Department (Harbor View Machining Department)
Complete the following exercise: Frank Weston (Jim Smith), supervisor of the Freemont Corporation's (Harbor View) Machining Department, was visibly upset after being reprimanded for his department's poor performance over the prior month. The department's cost control report is given below: Freemont Corporation-Machining Depa
Explain why the answer is chosen: 13. The three sections of a statement of cost of goods manufactured include: a.variable expenses, contribution margin, fixed expenses. b. direct costs, indirect costs, operating profit. c. sales revenue, gross profit, selling and administrative expenses. d, raw material, direct la
1. Olympia Productions, Inc., makes award medallions that are attached to ribbons. Each medallion requires 18 inches of ribbon. The sales forecast for February is 8,000 medallions. Estimated beginning inventories and desired ending inventories for February are: Estimated Beginning Inve
Hughes, Inc., manufactures digital voice recorders. During 2010, total costs associated with manufacturing 209,200 of the new MV-5253 model (introduced this year) were as follows: Raw materials $ 1,781,900 Direct labor 2,954,500 Variable manufacturing overhead 753,800 Fixed manufacturing overhead 709
The following solution helps with various accounting problems. The concepts covered include cost of inventory and hours of labor.
1. Deckhand Accessories, Inc., manufactures women's boating shoes. Manufacturing overhead is assigned to production on a machine-hour basis. For 2010, it was estimated that manufacturing overhead would total $974,400 and that 67,200 machine hours would be used. (a) Calculate the predetermined overhead application rate that w
National cereal manufacturers receive high margins for many of their cereals, often ranging from 60-75 percent. By contrast, the large retail grocery chains (Kroger, Safeway, etc.) that sell cereal make much smaller margins. What would explain this divergence in margins?
Which procedures for collecting accounting evidence have you used in your career? Explain how one of these procedures was used.
From Principles of Cost Accounting - 15th Edition - VanDerbeck Madden Manufacturing, Inc., manufactures a single product and uses a standard cost system. The factory overhead is applied on the basis of direct labor hours. A condensed version of the company's flexible budget follows: Direct labor hours 5,000 6,250 10,00
1------The following infrmation is available for Hughes Co. 2010 2009 2008 ------------------------------------------------------------------------------------------------- Net income $2,500 $1,700 $1,900 Ne
Novastar Corporation issued 2,000 of its $1,000, 10% ten-year bonds dated July 1, Year 1 on July 1, Year 1, at a time when the market paid 9% for bonds of similar risk. Interest is payable annually. The bonds were properly carried at $2,134,000 upon issue. On its December 31, Year 1 financial statements, Novastar Corporation wou
On Dec 31, Year 1, Todd Corporation issued 500 of its 10%, $1000 bonds at 105. Todd Corporation uses IFRS. The bonds were issued through an underwriter to whom Todd paid bond issue costs of $15,000. On Dec 31, Year 1 balance sheet, Todd should report the bond liability at: A 500,000 B 510,000 C 515,000 D 525,000
Septer corporation issued 2000 of its $1000, 8% ten-year bonds dated July 1, Year 1 on Sept 1, Year 1, at a time when the market paid 9% for bonds of similar risk. The bonds were quoted at 94 and pay interest quarterly on Sept 30 and Dec 31. What were the total proceeds of the bond issued at the time of sale?
A schedule of machinery owned by Red Bird Manufacturing Company is as follows: Total Estimated Cost: Machine A: $450,000, Machine B, $170,000, Mach C $40,000 Estimated Salvage Value: Mach A: $30,000, Mach B: $10,000, Mach C: $0 Life in Years: Mach A: 6, Mach B: 8, Mach C: 4 Red Bird computes composite depreciation on
Mike incurs the following employment-related expenses in the current year: Actual automobile expenses $ 2,500 Moving expenses (deductible under Sec. 217) 4,000 Entertainment expenses 1,500 Travel expenses (including $500 of business meals) 2,500 Professional dues and subscriptions 500 Total $11,000 Mike's AGI is $120,00