sales: 12,000 units at $17 eachactual production 15,000 unitsexpected volume of production 18,000 unitsmanufacturing costs incurredVariable $120,000Fixed 63,000nonmanufacturing costs incurredvariable $24,000fixed $18,0001. determine operating income, assuming the firm uses the variable-costing approach to product costing(do not prepare a statement).2. Assume that there is no january 1 inventory; no variances are allocated to inventory; and the firm uses a "full absorption" approach to product costing. computethe cost assigned to december 31 inventory and operating income for the year ended december 31(do not prepare a statement).
Whirly Corporation’s most recent Income Statement is shown below:Total Per UnitSales (10,000 units) $350,000 $35.00Variable expenses 200,000 20.00Contribution Margin 150,000 $15.00Fixed expenses 135,000Net Operating income $ 15,000Required: YOU MUST SHOW YOUR WORKPrepare a new contribution format Income Statement under each of the following conditions (consider each case independently):1. The sales volume increases by 100 units.2. The sales volume decreases by 100 units.3. The sales volume is 9,000 units.
How do i get the excel documents that it shows icons for in the text bookFrom: undefinedSource:ISBN: 1133714994 | Title: Advanced Accounting, 11th ed. | Publisher: CENGAGE Learning
Plasma Labs Inc. recently began production of a new product,flat panel displays, which required the investment of $3,000,000 inassets. Thecosts of producing and selling 20,000 units offlat panel displays are estimated as follows:Variable Costs per unit:Directmaterials$150Directlabor30Factoryoverhead50Selling and Admin. Expenses20Total$250Fixed Costs:Factoryoverhead$2,000,000Selling and Admin. Expenses1,000,000Plasma Labs Inc. is currently considering establishing a sellingprice for flat panel display. The president of Plasma Labs hasdecided to usethe cost plus approach to product pricing and hasindicated that the displays must earn a 16% rate of return oninvested assets.Instructions:1.Determine the amount of desired profit from the productionand sald of flat paneldisplays.2.Assuming that the total cost concept is used, determine (a)the cost amount per unit, (b)the markup percentage, and (c) theselling price of flat panel displays.3.Assuming that the product cost concept is used, determine(a) the cost amount per unit, (b)the markup percentage (rounded tonearest two decimal places), and (c) the selling price of flatpanel displays (rounded to the nearestdollar).4.Assuming that the variable cost concept is used, determine(a) the cost amount per unit,(b) the markup percentage, and (c)the selling price of flat panel display.5.Comment on any additional considerations that couldinfluence establishing the sellingprice for flat paneldisplays.6. Assumethat as of September 1, 2008, 13,000 units of flat panel displayshave been producedand sold during the current year. Analysisof the domestic market indicates that 4,400 additional units areexpected to be sold during theremainder of the year at the normalproduct price determined under the total cost concept. OnSeptember 3, Plasma Labs inc. received an offerfrom Vision SystemsInc. for 2,600 units of flat panel displays at $225each. Vision Systems Inc. will market the units in Canadaunder its ownbrand name, and no selling administrative expensesassociated with the sale will be incurred by Plasma LabsInc. The additional business is notexpected to affect thedomestic sales of flat panel displays, and the additional unitscould be produced using existing capacity.Prepare a differential analysis report of the proposedsale to Vision Systems Inc.Based upon the differential analysis report in part(a), should the proposal be accepted?Note: 2. (b) Markup percentage is 6%
Exercise 12-7 Basic Net Present Value Analysis [LO1]Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate of return that she is earning. For example, sixyears ago she paid $22,000 for 930 shares of Malti Company's common stock. She received a $651 cash dividend on the stock at the end of each yearfor six years. At the end of six years, she sold the stock for $22,800. Kathy would like to earn a return of at least 13% on all of herinvestments. She is not sure whether the Malti Company stock provided a 13% return and would like some help with the necessary computations.(Ignore income taxes.)Required:(a)Determine the net present value.
Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak sales occur in May of each year, as shown in the company’s sales budget for thesecond quarter given below:April May June TotalBudgeted sales (all on account) $300,000 $500,000 $200,000 $1,000,000From past experience, the company has learned that 20% of a month’s sales are collected in the month of the sale, another 70% are collected in the month following thesale, and the remaining 10% are collected in the second month following the sale. Bad debts are negligible and can be ignored. February sales totaled $230,000, andMarch sales totaled $260,000.Required: YOU MUST SHOW YOUR WORK1. Prepare a schedule of expected cash collections from sales, by month and in total for the second quarter.2. Assume that the company will prepare a budgeted balance sheet as of June 30. Compute the accounts receivable as of that date.
What is rate must you obtain to be able to afford a $100,000 boat in 10 years if you are willing to put aside $1,000 each quarter and have $50,000 set asidetoday?And what amount would the investor collect if the this investment used daily compounding?
true or false2. Activity-based costing is appropriate for a company that has low overhead costs that are proportional to the unit volumes of products. ( )
Scott, age 49, is an abandoned spouse. His household includes two unmarried stepsons who qualify as his dependents. He has AGI of $75,000 and itemized deductions of$9,500. What will be the taxable income for 2011.
A REGRESSION ANALYSIS YIELD THE FOLLOWING EQUATION:TOTAL COSTS= $81,126 + ($35.03* ACTIVITY LEVEL IN UNITS)WHAT IS THE ESTIMATED COST FOR A PRODUCTION LEVEL OF 1200 UNITS?
How Business Create ValueYou are considering opening a shop in a nearby mall that willsell specilaty T-shirts. T-shirts, containing designs and wordsselected by customers, will be producedfor customers on order. Youwill need to borrow $25,000 to begin operations. A local bank hasagreed to consider a loan and has asked for a summary plan todemonstatethe performance you expect from your company and yourability to repay the loan. You will pay $5.50 for T-shirts and willsell them for $8. The cost of paint andsupplies will be .50 pershirt. An examination of similar stores at other malls indicatesthat you should be able to sell an average of 1,000 shirts permonth. Rentfor your store will be $300 per month. Utilities willbe $150 per month, on average. Wages will be $800 per month.Calculate the expected profit of your company for the firstyear of operation.Explain how a bank loan officer may use your profitprojections to help make the lending decisions.
Below find the trial balance for Nybrostrand Company. Prepare an income statement and balance sheet in good format. After you have completed the two statements commenton the success of the company. Support your answer with information from the financial statements you just prepared.Nybrostrand Company31-Dec-11Trial Balance (accounts in alphabetical order)Debit CreditAccounts payable $ 67,000Accounts receivable $ 24,500Cash 16,700Common stock 10,000Depreciation expense 24,350Cost of goods sold 254,000Equipment (net of depreciation) 425,000Insurance 1,400Inventory 25,000Long-term debt 145,000Marketing 4,500Paid-in capital 90,000Property taxes 8,900Rent 18,000Retained earnings ?Revenues 456,000Salaries 67,500Utilities 6,700Total 876,550 768,000The submission should be 2 to 4 pages and need to include answers to all the questions listed above. Show computations, discuss the results and include references inAPA format.
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Santana Rey, owner of Business Solutions, realizes that she needs to begin accounting for baddebts expense. Assume that Business Solutions has total revenues of $44,000 during the first three monthsof 2012, and that the Accounts Receivable balance on March 31, 2012, is $22,867.Required1. Prepare the adjusting entry needed for Business Solutions to recognize bad debts expense on March31, 2012, under each of the following independent assumptions (assume a zero unadjusted balance inthe Allowance for Doubtful Accounts at March 31).a. Bad debts are estimated to be 1% of total revenues. (Round amounts to the dollar.)b. Bad debts are estimated to be 2% of accounts receivable. (Round amounts to the dollar.)2. Assume that Business Solutions’ Accounts Receivable balance at June 30, 2012, is $20,250 and thatone account of $100 has been written off against the Allowance for Doubtful Accounts since March31, 2012. If S. Rey uses the method prescribed in Part 1b, what adjusting journal entry must be madeto recognize bad debts expense on June 30, 2012?3. Should S. Rey consider adopting the direct write-off method of accounting for bad debts expenserather than one of the allowance methods considered in part 1? Explain.
A company has the following annual budget data:Beginning finished goods inventory 40000 unitsSales 70000 unitsEnding Finished Goods Inventory 30000 unitsDirect Materials $10 per unitDirect Labor $20 per unitVariable factory overhead $5 per unitSelling costs $2 per unitFixed factory overhead 80000What are total budgeted production costs for the year? (CIA adapted)a. 2,100,000 b. 2,180,000 c. 2,240,000 d. 2,320,000
Buffalo Tom Cruises purchased a five-year insurance policy for its ships on April 1, 2012 for $50,000. Assuming that April 1 is the effective date of the policy, theadjusting entry on December 31, 2012 isInsurance Expense 2,500Prepaid Insurance 2,500Prepaid Insurance 7,500Insurance Expense 7,500Insurance Expense 10,000Prepaid Insurance 10,000Insurance Expense 7,500Prepaid Insurance 7,500
x.øi5 width="620" style="font-size: 12px; ">York's outstanding stock consists of (a) 32,000 shares of noncumulative 8% preferred stock with a $10 par value and (b) 80,000shares of common stock with a $1 par value. During its first four years of operation, the corporation declared and paid the following cashdividends:2006$20,000200727,000200880,0002009197,000Requirement 1:Determine the amount of dividends paid each year to each of the two classes of stockholders. (Leave no cells blank - be certain toenter "0" wherever required. Omit the "$" sign in your response.)PreferredCommon2006$$2007$$2008$$2009$$Requirement 2:Compute the total dividends paid to each class for the four years combined. (Omit the "$" sign in your response.)Preferred]¶ x.øi5="center" style="margin-top: 4px; margin-bottom: 4px; ">Common
NIU Company's budgeted sales and direct materials purchase areas follows.MonthBudgetedSalesBudgetedD.M.purchasesJanuary$200,000$30,000February220,00035,000March270,00041,000Niu's sales are 40% cash and 60% credit. Credit sales arecollected 10% in the month of sale, 50% in the month following thesale and 36% in the second monthfollowing the sale; 4% areuncollectible. NIU's purchases are 50% cash and 50% on account.Purchase on account are paid 40% in the month of purchase and 60%in themonth following purchase.Instructions:a. prepare a schedule of expected collections from customersfor matchb. prepare a schedle of expected payments for direct materialsfor match
Werth uses the periodic method of recording inventory. A physical count reveals $234,890 of inventory on hand at December 31, 2010.Not included in the physical count of inventory is $10,420 of merchandise purchased on December 15 from Browser. This merchandise was shipped f.o.b. shipping point onDecember 29 and arrived in January. The invoice arrived and was recorded on December 31.Included in inventory is merchandise sold to Bubbey on December 30, f.o.b. destination. This merchandise was shipped after it was counted. The invoice was prepared andrecorded as a sale on account for $12,800 on December 31. The merchandise cost $7,350, and Bubbey received it on January 3.Included in inventory was merchandise received from Dudley on December 31 with an invoice price of $15,630. The merchandise was shipped f.o.b. destination. Theinvoice, which has not yet arrived, has not been recorded.Not included in inventory is $8,540 of merchandise purchased from Minsky Industries. This merchandise was received on December 31 after the inventory had been counted.The invoice was received and recorded on December 30.Included in inventory was $10,438 of inventory held by Werth on consignment from Jackel Industries.Included in inventory is merchandise sold to Sims f.o.b. shipping point. This merchandise was shipped after it was counted. The invoice was prepared and recorded as asale for $18,900 on December 31. The cost of this merchandise was $11,520, and Sims received the merchandise on January 5.Excluded from inventory was a carton labeled "Please accept for credit." This carton contains merchandise costing $1,500 which had been sold to a customer for $2,600.No entry had been made to the books to reflect the return, but none of the returned merchandise seemed damaged.(a) Determine the proper inventory balance for Werth Company at December 31, 2010.$(b) Prepare any correcting entries to adjust inventory to its proper amount at December 31, 2010. Assume the books have not been closed.Description/Account Debit CreditSales returns and allowancesSalesAccounts receivablePurchases (inventory)Accounts payableAccounts receivableSales returns and allowancesSalesPurchases (inventory)Accounts payable(To reverse sale entry in 2010.)SalesAccounts receivableAccounts payableSales returns and allowancesPurchases (inventory)Accounts payableAccounts receivableSales returns and allowancesPurchases (inventory)Sales(To record purchase of merchandise in 2010.)Purchases (inventory)Accounts payableSales returns and allowancesSalesAccounts receivableSalesSales returns and allowancesPurchases (inventory)Accounts receivableAccounts payable(To record merchandise returned.)
Atlas Steel Company produces three grades of steel: high, good,and regular grade. Each of these products (grades) has highdemand in the market, and Atlas isable to sell as much as it canproduce of all three. The furnace operation is a bottleneck inthe process and is running at 100% of capacity. Atlas wantstoimprove steel operation profitability. The variable conversioncost is $6 per process hour. The fixed cost is$1,530,000. In addition, the costanalyst was able todetermine the following information about the three products:HighGradeGoodGradeRegularGradeBudgetedunitsproduced6,0006,0006,000Total process hoursperunit151512Furnace hoursperunit532Unitsellingprice$375$350$320Direct materials costperunit$160$140$130The furnace operation is part of the total process for each ofthese three products. Thus, for example, 5 of the 15 hoursrequired to process High Grade steelare associated with thefurnace.Instructions:Determine the unit contribution margin for eachproduct.Provide an analysis to determine the relative productprofitabilities, assuming that the furnace is abottleneck.Assume that management wishes to improve profitabilityby increasing prices on selected products. At what price wouldHigh and Good grades need tobe offered in order to produce thesame relative profitability as Regular Grade steel?Note: 1. High Grade is $125