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Calculate: The Value of Ending Inventory

Emerson Electronics had the following information related to its September inventory. Number of Units Cost Sept. 1 Beginning Inventory 100 Units $10 5 Purchase 200 Units $11 15 Sold 150 Units 26 Purchase 100 Units $12 30 Sold 200 Units Sales were made at $20 per unit and Emerson uses the perpetual inventory system

Court rule for joint chequing accounts

Please analyze the 2 question below: 1. Steven had a joint checking account with his mother at City National Bank. Between January and May 1990, a number of checks were allegedly forged on the account. Steven asked City National to recredit the account for the amount of the checks, but the bank refused. In March 1992, Steven

Alomar Co: Cost Account Sales Value at Split Off Method

Sales-Value-at-Split-off Method Alomar Company manufactures four products from a joint production process: barlon, selene, plicene, and corsol. The joint costs for one batch are as follows: DIRECT MATERIALS $67,900 DIRECT LABOR 34,000 OVERHEAD 25,500 At the split-off point, a batch yields 1,400 barlon, 2,600 selene

Inventory valuation methods: GAAP

1. Are there any other inventory valuation methods acceptable under GAAP besides LIFO, FIFO, average cost and specific identification? If so, when is it appropriate to use the other method(s)? (Provide the Codification reference for your answer) 2. What does the Codification say about consistency regarding the application of

Business Combination (VIEs and Consolidation statements)

Please treat the following - (a) (b) and (c) as separate units: (a) Bay Company owned 70% of the voting common stock of Clay Corporation. Clay Corporation owned 20% of Bay Company. For 2011, Bay Company and Clay Corporation reported net income (not including the investment) of $600,000 and $300,000 respectively. Bay Company

Financial Analysis - Case Study

Module 1: Case Study A. What effect did the expansion have on sales and net income? What effect did the expansion have on the asset side of the balance sheet? What effect did it have on liabilities and equity? The sales increased by $2.4 million in 2013 over 2012. The net income decreased by $183,096. The assets increa

Greenwich PLC: Transfer Pricing Policies

Greenwich PLC A mediator has been appointed by the head office of Greenwich plc to agree the purchasing of products X and X100. The original agreement was for the North Division to purchase X and the Essex Division to purchase X100 and the level of purchases to remain the same as the previous year. The mediator appointed

HSBC Drug Cartel Money Laundering Guide

Define the major problem or problems. Indicate how the problems are related to one another: What has happened to the key players since the events in this case? Use appropriate references supporting problem definition and subsequent experience of key players. Analyze the situation. Explain the mechanisms that are causing the

Governing authorities over financial reporting

You have recently hired several new members to your team who will be assisting with financial statement analysis for your clients. As part of their training, you want to make sure that they fully understand the requirements of the SEC regarding financial reporting and the tools available to analyze the financial performance of a

Production Budget, CVP Analysis, Relevant Costs

1. Palermo Company estimates that unit sales will be 10,000 in Quarter 1; 12,000 in Quarter 2; 15,000, in Quarter 3; and 18,000 in Quarter 4. Management desires to have an ending finished goods inventory equal to 25% of the next quarters expected unit sales. Prepare a production budget by quarters for the next six months in 20

Accounting Brief: Health Care Organizations

Outline some of the similarities and differences in accounting and reporting among (a) private, not-for-profit health care organizations, (b) governmental health care organizations, and (c) private, for-profit health care organizations. Include the sources of GAAP, accounting and reporting for equity accounts, and statements req

Participating in an employer retirement plan

Karen is single and is an active participant in her employer retirement plan. She contributed $5,500, the maximum amount allowable, to an individual retirement account (IRA). For each of the following, select the best answer: 1. ___ She is early in her career and had AGI of $50,000. She expects that when she retires she will be

Acerr Case Study - Contribution margin ratio, degree of operating leverage etc

Mr. Labler owns and operates Labac Inc. and Mr. Capler owns and operates Capac Inc. Both firms produce and sell a relatively new product called Acerr. Since the product is relatively new, these are the only two firms in the Acerr industry. Labac is very labor intensive with very little machinery. In contrast, Capac is very

Partnership Income Taxation

Diamond Co. and Bill are equal partners in the calendar year F & F Partnership. Diamond Co. uses a fiscal year ending June 30, and Bill uses a calendar year. Diamond Co. receives an annual guaranteed payment of $50,000. F & F's taxable income (after deducting Diamond Co.'s guaranteed payment) is $40,000 for 2009 and $50,000 for

Intangible Assets: Eli Lilly & Company

Required: Refer to Eli Lilly's 2012 annual report to answer the following questions. The 2012 annual report of Eli Lilly & Company can be found here: http://www.sec.gov/Archives/edgar/data/59478/000005947813000007/lly-20121231x10k.htm 1. What time frame does Eli Lilly use to amortize its finite-lived intangible assets? 2.

Scottsdale Arizona CAFR

Please answer the following questions by using the city of Scottsdale Arizona's CAFR ending June 30, 2012. A. Examine the governmental fund financial statements. Are any major capital projects funds included? If so, list them. Attempt to find out the nature and purpose of the projects from the letter of transmittal, the no

National Linen Contribution Income Statement

What makes a contribution income statement unique? Using the company (National Linen) discuss how a contribution income statement could be used to improve planning in that particular company.

Master budget and flexible budget

The marketing, finance and accounting students estimate sales of 15,000 units for the upcoming period at Chance Company. The budget was based on the assumptions that follow: Per Unit Sales $60 Variabl

Materials and Labour Budget Revisions

Discuss each request below for a budget revision, putting what you see as both sides of the argument and reach a conclusion as to whether a budget revision should be allowed. Materials: A local material supplier was forced into liquidation. Criss-cross' buyer managed to find another supplier, 150 miles away at short notice

Chaff Co: Manager Performance

Chaff Co processes and sells brown rice. It buys unprocessed rice seeds and then, using a relatively simple process, removes the outer husk of the rice to produce the brown rice. This means that there is substantial loss of weight in the process. The market for the purchase of seeds and the sales of brown rice has been, and is e

New Corporation Tax Advantages

On creating a new 100 percent-owned corporation, Ben was advised by his tax consultant to treat 50 percent of the total amount that was invested as a loan and 50 percent as a purchase of corporate stock. What tax advantage does this arrangement have over structuring the entire investment as a purchase of stock? Discuss (AICPA ad

Joint Cost Allocation: Elsie Dairy Products Corp

Elsie Dairy Products Corp. buys one input, full-cream milk, and refines it in a churning process. From each gallon of milk Elsie produces three cups of butter and nine cups of buttermilk. During May 2010, Elsie bought 12,000 gallons of milk for $22,250. Elsie spent another $9,430 on the churning process to separate the milk into

Variable, Fixed, Mixed, and Step Costs

Describe a variable, fixed, mixed and step cost in an organization. Would this organization be more likely to benefit from using a manufacturing cost hierarchy or a customer cost hierarchy for determining cost drivers? Why? Identify a cost in each of the four cost hierarchies.

Information from a Common Size Balance Sheet

P11.10 Solve the requirements of information below for the year ended July 31, 2011. Required: - Total current assets - Plant assets, net of depreciation - Goodwill - Total other long-term assets - Total assets - Total current liabilities - Total long-term liabilities (including deferred taxes) - Total equity

Manufacturing vs. Customer Cost Hierarchy

Use a selected company or your current work environment to identify at least one cost or expense that would fit under each of the following categories: - Variable - Fixed - Mixed - Step Would your company be more likely to benefit from using a manufacturing cost hierarchy or a customer cost hierarchy for determining cost

Theory: GAAP vs. IFRS, finance choices, best financial statement

1. The Financial Accounting Standards Board (FASB) sets the accounting rules for public companies in the United States. These accounting rules are known as Generally Accepted Accounting Standards (GAAP). The International Accounting Standards Boards (IASB) proposes international accounting rules. These rules are known as Inte

P12.20 contribution margin format income statement unit changes

Contribution margin format income statement "what-if" questions P12.20 Prepare a traditional income statement and a contribution margin format income statement (and contribution margin ratio) for a firm with a sales volume of 15,000 units: Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . .