ABC vs. PROCESS COSTING & JOB-ORDER COSTING

How do the three compare? What are the advantages, disadvantages, and applicability for each?

On March 1, 2019, Annapolis Company has a beginning Work in Process inventory of zero. All materials are added into production at the beginning of its production. There is only one production WIP inventory. During the month 37,000 units were started. At the end of the month all started units were 75% complete with respect to conversion. Direct Materials placed into production had a total cost of $375,000 and the total conversion cost for the month was $423,000. Annapolis uses the weighted-average process costing method. Use this information to determine the cost per equivalent unit of direct material for the month of March. (Round answer to the nearest cent.)

On October 14, 2005, eBay acquired all of the outstanding securities of Skype Technologies S.A. (“Skype”), for a total initial consideration of approximately $2.6 billion, plus potential performance based payments of approximately $1.3 billion (based on the euro–dollar exchange rate at the time of the acquisition and using an income approach to estimating the value of the earnout). The initial consideration of approximately $2.6 billion was comprised of approximately $1.3 billion in cash and 32.8 million shares of eBay’s common stock. For accounting purposes, the stock portion of the initial consideration was valued at approximately $1.3 billion based on the average closing price of eBay common stock surrounding the acquisition announcement date of September 12, 2005. Prepare the journal entry on eBay’s books to record the acquisition.

before procedures using statistical or non-statistical sampling methods begin, the auditor must determine how the sample will be selected. Discuss the four types if sample selection, when they are used and generally, how they are used. give examples.

Nancy Conradt and Chris Russell are partners who share profits and losses in the ratio of 60:40, respectively. On December 31, 2019, they decide that Russell will sell one-half of his interest to Pam Ortega. At that time, the balances of the capital accounts are $640,000 for Conradt and $840,000 for Russell. The partners agree that before the new partner is admitted, certain assets should be revalued. These assets include merchandise inventory carried at $425,200 revalued at $413,000, and a building with a book value of $274,000 revalued at $502,000.

Record the revaluation entries and Determine the capital balances of the two existing partners after the revaluation is made.

Evaluate and discuss how Delta airlines could benefit by analyzing future projects in terms relevant costs. This discussion should include the firm’s future plans, such as expansion, consolidation, and downsizing and how relevant costs could be used in the decision making.

Regarding accounts receivable and an allowance for uncollectible accounts, which of the following statements is false?

Group of answer choices

Net realizable value equals the sales price of an item less reasonable further costs to both make the item ready to sell and to sell it.

An aging of accounts receivable is a determination of how long each receivable has been on the books.

The net realizable value of accounts receivable is decreased when a bad debt is written off.

Receivables that result from transactions other than trade receivables, if material, are to be separately disclosed on the balance sheet.

Larkspur Inc. reports the following pretax income (loss) for both book and tax purposes. (Assume the carryback provision is used where possible for a net operating loss.)

The tax rates listed were all enacted by the beginning of 2015.

Prepare the journal entries for years 2015–2018 to record income tax expense (benefit) and income taxes payable (refundable), and the tax effects of the loss carryback and loss carryforward, assuming that based on the weight of available evidence, it is more likely than not that one-half of the benefits of the loss carryforward will not be realized. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Prepare the income tax section of the 2017 income statement beginning with the line “Operating loss before income taxes.” (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Prepare the income tax section of the 2018 income statement beginning with the line “Income before income taxes.” (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Peter Nimmer opened a veterinary business in Nashville, Tennessee, on August 1, 2017. On August 31, the balance sheet showed Cash $9,000, Accounts Receivable $1,700, Supplies $600, Equipment $6,000, Accounts Payable $3,600, and Owner’s Capital $13,700. During September, the following transactions occurred.

1. Paid $2,900 cash on accounts payable.
2. Purchased additional equipment for $2,100, paying $800 in cash and the balance on account.
3. Recognized revenue of $7,800, of which $2,500 is received in cash and the balance is due in October.
4. Withdrew $1,100 cash for personal use.
5. Paid salaries $1,700, rent for September $900, and advertising expense $450.
6. Incurred utilities expense for month on account $170.
7. Received $10,000 from Capital Bank (money borrowed on a note payable).

Instructions

1. (a) Prepare a tabular analysis of the September transactions beginning with August 31 balances. The column headings should be as follows: Cash 1 Accounts Receivable 1 Supplies 1 Equipment 5 Notes Payable 1 Accounts Payable 1 Owner’s Capital 2 Owner’s Drawings 1 Revenues 2 Expenses.
2. (b) Prepare an income statement, Owner Equity y Balance Sheet for September 30.

thank you for your assistance with a vertical analysis of statements of earnings

1. which of the following utilizes the time value of money?

a. payback

b. benefit cost ratio

c. npv

d. none of the above

2.which of the following methods assumes 0 is the net present value

a. payback

b. discounted payback

c.irr

d. none of the above

3. a company has determined tha the standard for materials is 20ft squared and 4$ per square foot. if a process produces 2000 units and uses 11ft squared per unit at 5$ per square foot, the materials quantity variance is

a. 8000 favorable

b. 8000 unfavorable

c. 18,000 unfavorable

d. none of the above

On June 1, 2014, Montreal Corporation purchased a machine to process steel. The machine that cost $3,000,000 was purchased from Ontario Machine Inc. located in Toronto. Shipping amounted to $200,000, annual insurance on the machine was $25,000 while the installation cost was $85,000. Managers have estimated a 7 yearuseful life and a $200,000 salvage value (residual value). MontrealCorporation’s year-end is December 31st.

Required:

(a) The president of Montreal Corporation wants you to calculate amortization expense for the years ended December 31, 2014and December 31, 2015assuming the company chooses i) the straight-line method and ii) the double-declining balance method of amortization. Please show all your work.

(b) Assume that Montreal Corporation has chosen the straight-line method to amortize the asset. On January 1, 2016, management changed its initial estimate of the useful life of the asset. Based on further research, their engineering department now believes the total useful life of the asset is more likely to be 8 years. And the salvage value becomes $150,000. Based on this information, calculate the amortization expense for the year ended December 31, 2016.

Spotter Corporation reported the following for June in its periodic inventory records.

Required:

1. Calculate the cost of ending inventory and the cost of goods sold under the (a) FIFO, (b) LIFO, and (c) weighted average cost methods. (Do not round your intermediate calculations. Round "Weighted Average Cost" to 2 decimal places.)

2. Which of the three methods will lead to reporting the highest net income?

• FIFO

• LIFO

• Weighted Average Cost

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In its Department R, Recyclers, Inc., processes donated scrap cloth into towels for sale in local thrift shops. It sells the products at cost. The direct materials costs are zero, but the operation requires the use of direct labor and overhead. The company uses a process costing system and tracks the processing volume and costs incurred in each period. At the start of the current period, 450 towels were in process and were 60 percent complete. The costs incurred were $663. During the month, costs of $15,600 were incurred, 3,900 towels were started, and 225 towels were still in process at the end of the month. At the end of the month, the towels were 20 percent complete. Required: a. Prepare a production cost report; the company uses weighted-average process costing. b. Show the flow of costs through T-accounts. Assume that current period conversion costs are credited to various payables.