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Accounting

Statute of Limitations Scenario

The IRS is disputing a deduction reported on your 2005 tax return, which you filed on April 17, 2006. On April 2, 2009, the IRS audit agent asks you to waive the statute of limitations for the entire return so as to give her additional time to obtain a Technical Advice Memorandum. The agent proposes in return for the waiver a "c

Allocation of costs, machine hours, overhead application rate

Q1. "The more the better!" Was a comment made by the CEO of a major company when asked about allocation of sales, general, and administrative costs to products. Do you agree? Explain. Q2. Suppose a company uses machine hours as a cost-allocation base for factory overhead. How does the company compute a budgeted overhead

Value Added/Non Value Added

2. Borke and Falvery is a law firm that uses activity-based costing. Classify these activities as value-added or nonvalue-added: 1. Taking appointments. 2. Meeting with Clients. 3. Court time. 4. Meeting with opposing attorneys. 5. Billing.

Profit margin, earning per shares.

Slaubaugh Corporation's most recent balance sheet and income statement appear below: Statement of Financial Position December 31, Year 2 and Year 1 (in thousands of dollars) Year 2 Year 1 Assets Current assets: Cash.................................................................... $ 100 $

Accounting Measurement and Reporting

10. Betsy McCall is the president of Brew News. She has no accounting background. McCall cannot understand why Current cost is not used as the basis for accounting measurement and reporting. Explain what basis is used and Why? 11. Describe the two constraints inherent in the presentation of accounting information. 12. In

Performance

On January 1, 2007, Tom Clark was promoted to the position of production manager in Seattle Seafood Company. The firm purchases raw fish, cooks and processes it, and then cans it in signal-portion containers. The canned fish is sold to several wholesalers specializing in providing food to school lunch programs in the Northwest r

Mangerial Accounting

____ 1. Period costs would include a. direct labor. b. direct materials. c. indirect manufacturing costs. d. selling and administrative costs. ____ 2. Manufacturing costs are typically classified as a. product costs or period costs. b. direct materials or direct labor. c. direct materials, direct labor, o

Explain Internal weaknesses over cash receipts

See attached page for problem. List internal control weaknesses over cash receipts and suggest improvements. The following control procedures are used in Elke Company for over-the-counter cash receipts. Cashiers are experienced; thus, they are not bonded. All over-the-counter receipts are registered by three clerks w

Statement of Retuned Earnings

Please provide input. 1. Last year, Jefferson Motors had retained earnings of $710,000 at the end of the year. This year, Jefferson paid a dividend of $55,000 and its end of the year retained earnings was $780,000. What was the net income of Jefferson motors? 2. In your opinion if the firm has a high retained earnings bal

Data flow diagram and systems flowchart

The Joseph Brant Manufacturing Company makes athletic footwear. Processing of production orders is as follows: At the end of each week, the production planning department prepares a list of shoes and quantities to be produced during the next week. Using this list as a source, data entry clerks key in production order release rec

P21-2A Fultz Company: Manufacturing overhead flexible budget

Problem P21-2A Fultz Company manufactures tablecloths. Sales have grown rapidly over the past 2 years. As a result, the president has installed a budgetary control system for 2010. The following data were used in developing the master manufacturing overhead budget for the Ironing Department, which is based on an activity index

Warranty Costs on Computer Sales

Equipment Company sells computers for $1,500 each and also gives each customer a 2-year warranty that requires the company to perform periodic services and to replace defective parts. During 2006, the company sold 700 computers. Based on past experience, the company has estimated the total 2-year warranty costs as $30 for parts

Compute the variable manufacuting overhead allocated

Automotive products (AP) designs and produces automotive parts. In 2009, actual variable manufacturing overhead is $308,600. AP's Simple costing system allocates variable manufacturing overhead to its three customers based on machine-hours and prices its contracts based on full costs. One of its customers has regularly compla

Cost of new preferred stock

M & M Motors is financed with the following optimal capital structure: Source Market Value Bonds $55,000,000 Preferred Stock $25,000,000 Common Stock $45,000,000 New bonds can be sold at par

Accounting Investments for Santo Corp

Question 2. Santo Corp., a company whose stock is publicly traded, provides a noncontributory defined benefit pension plan for its employees. The company's actuary has provided the following information for the year ended December 31, 2008: Projected benefit obligation $1,200,000 Accumulated benefit obligation 1,050,000

PowerPoint Presentation for the Introduction of Nature of Costs

Create a 10-20 slide PowerPoint presentation describing what you have learned from each chapter of this course so far. Be creative! Lesson 1: Introduction; the Nature of Costs Lesson 2: Opportunity Cost of Capital and Capital Budgeting; Organizational Architecture Lesson 3: Responsibility Accounting and Transfer Pricing; Bu

ACCOUNTING

12-9 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

Accounting for Smashing Pumpkins Company

1. (Lower-of-Cost-or-Market) Smashing Pumpkins Company uses the lower-of-cost-or-market method, on an individual-item basis, in pricing its inventory items. The inventory at December 31, 2008, consists of products D, E, F, G, H, and I. Relevant per-unit data for these products appear below. Item D Item E Item F Item G Item H I

Cost of Job

Raymond Company produces pipes for concert-quality organs. Each job is unique. In April 2009, it competed all outstanding orders, and then in May 2009, it worked on only two jobs M1 and M2 Direct Materials Job M1 = $75,000 Direct Materials Job M2 = $50,000 Direct Manufacturing Labor for Job M1 = 275,000 Direct

Calculate cost of Job

4-22 Printers, Inc. Produces annual reports and marketing materials for large companies. There are three categories of costs in its normal job-costing system: Direct materials, direct labor, and overhead (both variable and fixed), allocated on the basis of direct labor costs. Jill Liu, the controller, is concerned that an in

The mechanics of raising equity capital

Starware software was founded last year to develop software for gaming applications. The founder initially invested $800,000 and received 8 million shares of stock. Starware now needs to raise a second round of capital, and it has identified a venture capitalist who is interested in investing. This venture capitalist will invest

Preparing Operating Activities

See attached file please. Statement of Cash Flows (1) Prepare the operating activities section of the statement of cash flows based on the following information for A Company: Net Income $195,000 Depreciation Expense $45,000 Loss on Sale Of Equipment $5,000 Decrease in Accounts Receivable Compared to Prior Year $15,

Common and Preferred Dividends

See attached file. Preferred Stock Dividends Based on the following information, illustrate the distribution of both common and preferred stock dividends based on these two scenerios: (1) Preferred stock is 7% and non-cummulative. (2) Preferred Stock is 8% and cummulative. (This will result in a total of 6 allocations, 2 f

Spreadsheet to Create an Invoice for a Picnic

You are now ready to create the invoices you will present to each family that attends the high school reunion picnic. Each family will pay a portion of the general expenses and for their own food and sweatshirts. You will also create invoices to give to each classmate when they pick up their sweatshirts at the reunion. Before

BA 510 Accounting Final Exam Prep

Need Assistance with the following, please show all work 1. The controller of a small private college is complaining about the amount of work she is required to do at the beginning of each month. The president of the university requires the controller to submit a monthly report by the fifth day of the following month. The m

Tax Depreciation and Pre-Tax Income

No life is determined for the equipment and no current vs. original value is offered so how do I determine the declining-balance depreciation for Motorola & the Straight-line depreciation for Intel? I've only seen the declining-balance method used when Original Value, Current Value & Life were known factors. Motorola's Year 2

Tax Reform 2010

Tax Reform 2010 The President Obama is considering to propose "Tax Reform Act 2010" to stimulate slow economy. The president appointed you as a member of the " Committee for Tax Reform Act 2010". The president candidate is seeking new tax incentives, deductions, and credits, which would stimulate the slow economy and create m