18. What are the requirements it is essential to ensure that you clarify and comply with Competency? in the context of bookkeeper and accountant.

4. Italiano Manufacturing Company produces one type of pasta. For the coming quarter, it estimates that it will sell 25,000 kg of finished product. It currently has 1,000 kg in stock and expects to increase this to 2,000 kg at the end of the quarter.

The main ingredients to make 1 kilogram of pasta are 900 grams of durum wheat and two eggs. Prices for these items are budgeted at $2,100 per tonne of wheat and $3 per dozen eggs.

The company is holding 2.5 tonnes of wheat but wants to reduce this to 2.2 tonnes by the end of the quarter. It holds no stock of eggs, buying them in as needed.

a) Prepare the production budget for the quarter.

b) Prepare the direct materials budget for the quarter.

Pittman Company is a small but growing manufacturer of telecommunications equipment. The company has no sales force of its own; rather, it relies completely on independent sales agents to market its products. These agents are paid a sales commission of 15% for all items sold.

Barbara Cheney, Pittman’s controller, has just prepared the company’s budgeted income statement for next year as follows:

*Primarily depreciation on storage facilities.

As Barbara handed the statement to Karl Vecci, Pittman’s president, she commented, “I went ahead and used the agents’ 15% commission rate in completing these statements, but we’ve just learned that they refuse to handle our products next year unless we increase the commission rate to 20%.”

“That’s the last straw,” Karl replied angrily. “Those agents have been demanding more and more, and this time they’ve gone too far. How can they possibly defend a 20% commission rate?”

“They claim that after paying for advertising, travel, and the other costs of promotion, there’s nothing left over for profit,” replied Barbara.

“I say it’s just plain robbery,” retorted Karl. “And I also say it’s time we dumped those guys and got our own sales force. Can you get your people to work up some cost figures for us to look at?”

“We’ve already worked them up,” said Barbara. “Several companies we know about pay a 7.5% commission to their own salespeople, along with a small salary. Of course, we would have to handle all promotion costs, too. We figure our fixed expenses would increase by $3,525,000 per year, but that would be more than offset by the $4,700,000 (20% × $23,500,000) that we would avoid on agents’ commissions.”

The breakdown of the $3,525,000 cost follows:

“Super,” replied Karl. “And I noticed that the $3,525,000 equals what we’re paying the agents under the old 15% commission rate.”

“It’s even better than that,” explained Barbara. “We can actually save $108,100 a year because that’s what we’re paying our auditors to check out the agents’ reports. So our overall administrative expenses would be less.”

“Pull all of these numbers together and we’ll show them to the executive committee tomorrow,” said Karl. “With the approval of the committee, we can move on the matter immediately.”

3. Determine the dollar sales at which net income would be equal regardless of whether Pittman Company sells through agents (at a 20% commission rate) or employs its own sales force.

Worley Company buys surgical supplies from a variety of manufacturers and then resells and delivers these supplies to hundreds of hospitals. Worley sets its prices for all hospitals by marking up its cost of goods sold to those hospitals by 9%. For example, if a hospital buys supplies from Worley that cost Worley $100 to buy from manufacturers, Worley would charge the hospital $109 to purchase these supplies.

For years, Worley believed that the 9% markup covered its selling and administrative expenses and provided a reasonable profit. However, in the face of declining profits, Worley decided to implement an activity-based costing system to help improve its understanding of customer profitability. The company broke its selling and administrative expenses into five activities as shown:

Worley gathered the data below for two of the many hospitals that it serves—University and Memorial (each hospital purchased medical supplies that had cost Worley $35,000 to buy from manufacturers):

Required:

1. Compute the total revenue that Worley would receive from University and Memorial.

2. Compute the activity rate for each activity cost pool.

3. Compute the total activity costs that would be assigned to University and Memorial.

4. Compute Worley’s customer margin for University and Memorial. (Hint: Do not overlook the $35,000 cost of goods sold that Worley incurred serving each hospital.)

How is depreciation different from what you thought before reading and working with this chapter?

Someone else (lets get a lot of short responses - no one person needs to answer all questions, although I would like to hear your questions that arise from this discussion): What is book value? How is it different from market value?

Someone else - what is salvage value?

Someone else - what is depreciable cost?

Let me hear your questions on the different methods of depreciation. Why would you maybe choose to use "units of production" instead of straight-line? Lets try to get some short responses that you may use to follow up with questions for one another. Each student can focus on one of these questions. I think that works better than getting all questions answered by each student responding. I want to ensure that we are reading each other's work as it will generate questions and get us to a better understanding.

Henri Barrista, café proprietor, is preparing a set of budgets for the next six months (period ended 31

December). Information given is:

All sales revenue is cash and all expenses will be paid in the period and GST will need to be added where appropriate.

Prepare the following budgets: sales, cost of goods sold, purchases, cash and income statement.

Smoky Mountain Corporation makes two types of hiking boots—the Xtreme and the Pathfinder. Data concerning these two product lines appear below:

The company has a traditional costing system in which manufacturing overhead is applied to units based on direct labor-hours. Data concerning manufacturing overhead and direct labor-hours for the upcoming year appear below:

Required:

1. Compute the product margins for the Xtreme and the Pathfinder products under the company’s traditional costing system.

2. The company is considering replacing its traditional costing system with an activity-based costing system that would assign its manufacturing overhead to the following four activity cost pools (the Other cost pool includes organization-sustaining costs and idle capacity costs):

Compute the product margins for the Xtreme and the Pathfinder products under the activity-based costing system.

3. Prepare a quantitative comparison of the traditional and activity-based cost assignments.

Find a publicly traded company that has treasury stock on its balance sheet. Provide a link to the balance sheet in your post and explain the details of the treasury stock transactions based upon the amounts and disclosures found in the financial statements. Why do you think the company acquired the treasury stock? Do not choose a company that has already been reported on by one of your classmates. Participate in follow-up discussion by critiquing the posts provided by your classmates and defending their challenges to your post. Your initial post should be 250-500 words and should demonstrate solid academic writing skills. Please include proper citations in your discussion post. Points will be deducted if proper citations are not used.

Explain the three accounting changes and correction of an error and the method used to disclose each one

The following information is available for the preparation of the government-wide financial statements for the City of Southern Springs as of April 30, 2017:

Required:

From the preceding information, prepare a Statement of Net Position for the City of Southern Springs as of April 30, 2017. Assume that outstanding bonds were issued to acquire capital assets and restricted assets total $598,000 for governmental activities and $205,000 for business-type activities. (Negative amounts should be indicated by a minus sign).

TJ Enterprises’ equipment account increased $43,000 during the period; the related accumulated depreciation increased $14,000. New equipment was purchased at a cost of $58,000 and used equipment was sold at a loss of $4,000. Depreciation expense was $19,000. How much is proceeds from the sale of the used equipment? a. $10,000 b. $15,000 c. $6,000 d. $14,000

The City of Grinders Switch maintains its books in a manner that facilitates the preparation of fund accounting statements and uses worksheet adjustments to prepare government-wide statements.

1. General fixed assets as of the beginning of the year, which had not been recorded, were as follows:

2. During the year, expenditures for capital outlays amounted to $7,501,000. Of that amount, $4,800,600 was for buildings; the remainder was for improvements other than buildings.
3. The capital outlay expenditures outlined in (2) were completed at the end of the year (and will begin to be depreciated next year). For purposes of financial statement presentation, all capital assets are depreciated using the straight-line method, with no estimated salvage value. Estimated lives are as follows: buildings, 40 years; improvements other than buildings, 20 years; and equipment, 10 years.
4. In the governmental funds Statement of Revenues, Expenditures, and Changes in Fund Balances, the City reported proceeds from the sale of land in the amount of $600,100. The land originally cost $505,100.
5. At the beginning of the year, general obligation bonds were outstanding in the amount of $4,002,000. Unamortized bond premium amounted to $19,000. Note: This entry is not covered in the text, but is similar to entry 9 in the chapter.
6. During the year, debt service expenditures for the year amounted to: interest, $612,200; principal, $434,900. For purposes of government-wide statements, $1,900 of the bond premium should be amortized. No adjustment is necessary for interest for interest accrual.
7. At year-end, additional general obligation bonds were issued in the amount of $1,794,400, at par.

Required:

Prepare the journal form, worksheet adjustments for each of the above situations. (If no entry is required for a transaction/event, select “No Journal Entry Required” in the first account field. Round your answers to the nearest whole dollar).

what is the earning per share..

The AC Partnership has two partners - Amanda and Cheryl. Each partner has a 50% interest in the partnership. Amanda also owns 80% (80 shares) of the ZZZ Corporation. The other 20% of ZZZ are owned by Wendy who is not related to Amanda or Cheryl. Based on these facts, the AC partnership will be deemed to own ______ shares of ZZZ and Cheryl will be deemed to own _____ shares of ZZZ.

b. 20 shares, 20 shares.

c. 80 shares, 20 shares.

d. 80 shares, zero shares.

e. none of the above.

The following condensed income statements of the Jackson Holding Company are presented for the two years ended December 31, 2018 and 2017:

On October 15, 2018, Jackson entered into a tentative agreement to sell the assets of one of its divisions. The division qualifies as a component of an entity as defined by GAAP. The division was sold on December 31, 2018, for $5,600,000. Book value of the division’s assets was $4,800,000. The division’s contribution to Jackson’s operating income before-tax for each year was as follows:

Assume an income tax rate of 30%.

Required: (In each case, net any gain or loss on sale of division with annual income or loss from the division and show the tax effect on a separate line)
1. Prepare revised income statements according to generally accepted accounting principles, beginning with income from continuing operations before income taxes. Ignore EPS disclosures.
2. Assume that by December 31, 2018, the division had not yet been sold but was considered held for sale. The fair value of the division’s assets on December 31 was $5,600,000. Prepare revised income statements according to generally accepted accounting principles, beginning with income from continuing operations before income taxes. Ignore EPS disclosures.
3. Assume that by December 31, 2018, the division had not yet been sold but was considered held for sale. The fair value of the division’s assets on December 31 was $4,100,000. Prepare revised income statements according to generally accepted accounting principles, beginning with income from continuing operations before income taxes. Ignore EPS disclosures.