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Accounting

Spenser Co: Operating and Net Income

Calculate operating income and net income: the following information is available from the accounting records of Spenser Co. for the year ended December 31, 2004: Selling, general and administrative expenses $51,000 Accounts payable 85,000 Extraordinary gain from lawsuit, ne

Financial Statements of Registered Transactions

Our corporation was organized in July 15, 2015. It was authorized to emit 150.000 $25 common stocks of even value and 50.000 cumulative preferred stocks of 14% class A. The class A to of the Favorites the action has an established value of $50. The following transactions related to these actions happened. a. Emission of 55.000

Variance between flexible budget and actual results

Davis Company provides the following information budgeted for 2007. Sale price $50 by unit Cost to manufacture variable $32 by unit Fixed cost of manufacture $100,000 Fixed cost of sales and administrative $40,000 Davies predic

Accounting

Engle Manufacturing Company established the following information of prices and costs: Sale Price $50 por unidad Variable cost of production $32 por unidad Fixed costs total of production $100,000 Fixed costs total of sale and administrative

Error Analysis and Correcting Entry: Gottschalk Corporation

You have been engaged to review the financial statements of Gottschalk Corporation. In the course of your examination you conclude that the bookkeeper hired during the current year is not doing good job. You notice a number of irregularities as follows: 1. Year-end wages payable of $3,400 were not recorded because the bookkee

Determining Allowable Charitable Contribution Deductions

In each of the following independent cases determine the amount of charitable contributions allowed the individual before consideration of any percentage limitations. A. Charitable Chubbs contributed an item of inventory from his sole proprietorship to a public charity for its use. The fair market value of the asset was $800

"Rick's Bags"

Rick's Bags manufactures both golf bags and tennis totes. Fixed manufacturing overhead is budgeted to be $187,200, variable manufacturing overhead is budgeted to be $1.10 per direct labor hour, and fixed selling and administration costs are budgeted to be $346,000. Each golf bag is expected to use 2.5 direct labor hours and each

Calculations Around a Water Plant's Overhead

The Densain Water plant in Naples, Florida, bottles purified and flavored waters in a variety of sizes (20, 36, 48, and 64 ounces) for sale through vending machines and retail stores. Volume is measured as bottled ounces. The plant's annual budgeted fixed manufacturing overhead amounts to $1.8 million, and variable manufacturin

Using regression for high-low method of variable costing

Question 7: (10 points) Exercise 5-5 (Appendix 5A) Least-Squares Regression [LO5] EZ Rental Car offers rental cars in an off-airport location near a major tourist destination in Florida. Management would like to better understand the behavior of the company's costs. One of those costs is the cost of washing cars. The comp

Proper Interpretation of Variable Overhead Spending

You recently were hired as an accountant for Northern Pacific Manufacturing. One of your responsibilities is to develop and maintain a standard costing system for overhead as well as materials and labor standard for the company. During a recent planning meeting, the company's production manager expressed concern regarding the

Annual Payment and Principal Balance

P 3-4 Just One, Inc, has two mutually exclusive investment projects, P and Q, shown below. Suppose the market interest rate is 10 percent? Project Initial Investment Year 1 Year 2 IRR NPV (r = 10%) P -$200.00 $140.00 $128.25 22.4% $33.26 Q -100.00 80.00 56.25 25.0 19.2

Taxable payroll

1- Timmons Co., which has a taxable payroll of $500,000, is subject to FUTA tax of 6.2% and a state contribution rate of 5.4%. However, because of stable employment experience, the company's state rate has been reduced to 2%. What is the total amount of federal and state unemployment tax for Timmons Co.? a. $58,500 b.

Overhead Costs and Transfer Price

Company XYZ attempting to determine costs associated with various jobs. Current production records show the following information for two recent jobs: Job 1 Job 2 Direct materials costs $15,600 $31,200 Direct labor costs: Assembly Department $ 3,900 $ 5,200 Cutting Department $10,400 $ 2,600 Machine hours used in t

Variable/ fixed/ mixed costs

The Salvage Company incurred the following costs for the month of August when it observed an activity level of 10,000 units. Activity level in units --------- 10,000 Variable Costs ----------------- $30,000 Fixed Costs -------------------- $50,000 Mixed Costs -------------------- $40,000 Total Costs -------------------- $

Holes Company: Variable Costs

The Holes Company realizes 3 products from a single mining process: Products A1, A2, and A3. Each product may be sold as is in its raw form or processed further into a more refined state. The additional processing requires no expanded capacity and production costs are entirely variable. Sales values and cost information are:

Net Operating Loss (NOL)

Shep King Corporation reported the following pretax financial income (loss) for the years 2000 through 2007. Pretax Financial Income (Loss) Tax Rate 2000 $80,000 30% 2001 $34,000 35% 2002 $96,000 50% 2003 ($300,000) 40% 2004 $180,000 40% 2005 $60,000 40% 2006 $210,000 40%

Compute Full Cost and Processing

Joint Products, Inc., produces two joint products, X and V using a common input. These are produced in batches. The common input costs $8,000 per batch. To produce the final products (X and V), additional processing costs beyond the split-off point must be incurred. There are no beginning inventories. The accompanying data summa

Allocation System at Reed Park

Reed Park, Inc., is a bottler/supplier of bottled spring water to both commercial and residential customers. Reed Park's corporate headquarters is located in Clearwater Springs, Colorado. It operates distribution centers (DCs) in three territories throughout the metro Clearwater Springs area. The company began by selling to res

Allocation of Costs..

Problem 7-8 "Winterton Group" The Winterton Group is an investment advisory firm specializing in high-income investors in upstate New York. Winterton has offices in Rochester, Syracuse, and Buffalo. Operating as a profit center, each office receives central services, including information technology, marketing, accounting, and

Two Short Accounting Problems

Please help with the following problems. 1) On October 1, 2006, Parton Industries borrowed $12 million cash to provide working capital. The loan was made by Second Bank under a short-term line of credit. Parton issued an 8-month, "noninterest-bearing note." 8% is the bank's stated "discount rate." Parton's fiscal period is t

Taxation II

1. Robert Reed, a bachelor, maintains his parents in a nursing home. They have no income of their own and are completely dependent on their son. His parents are 75 and 72 years of age. Robert has the following sources of income. Salary... $45,000 Interest on municipal bonds... 750 Interest on bank accounts... 800 Dividends

Study Guide

Please help with this study guide. Study Guide Managerial Accounting 1. Whirl Company sells cordless razors for $50. Variable costs are 40% of sales and total fixed costs are $40,000. What is the firm's magnitude of operating leverage if 2,000 units are sold? A) 3.0 B) 2.0 C) 1.5 D) None of the above 2. Select