Boots Plus has two product lines: Hiking boots and Fashion boots. Income statement data for the most recent year follow:

Assuming fixed costs remain unchanged, how would discontinuing the Fashion line affect operating income?

A.

Increase in total operating income of $29,000

B.

Increase in total operating income of $114,000

C.

Decrease in total operating income of $9,000

D.

Decrease in total operating income of $140,000

The assembly division of Gannett Watches​, Inc. uses the​ weighted-average method of process costing. Consider the following data for the month of May 2017​:

a. Degree of​ completion: direct​ materials, 80%; conversion​ costs, 35%.

b. Degree of​ completion: direct​ materials, 80​%; conversion​ costs, 40​%.

Requirements

Summarize the total costs to account​ for, calculate the cost per equivalent unit for direct materials and conversion​ costs, and assign costs to the units completed​(and transferred​ out) and units in ending work in process.

Begin by summarizing the total costs to account for.

• How do the three methods of depreciation (include straight line method, units of production and double declining balance method.) affect the income statement and the balance sheet?

International Accounting

What are the market transaction methods? Describe what is done in each of the market transaction methods.

what is the single rate / current rate translation methods? What is the temporal method? Describe what is done in each of the translations.

Instructions

Phillips Brothers Printers (PBP) provides printing services to a wide variety of customers. For most jobs, PBP submits a bid and uses the job cost system to accumulate costs, but bills the bid amount to the customers. They do have several customers who routinely have "out of the ordinary" jobs and PBP bills those on a cost-plus basis, with the customer paying the actual costs plus a predetermined profit percentage on the total cost.

Sally Phillips, controller for PBP, is approached by the company President who asks her to look for ways to charge more of the production costs to the cost-plus jobs. His logic is that since those customers will pay all the costs plus a profit, they can improve their overall profitability by shifting costs from bid jobs to cost-plus jobs.

Answer the following questions:

1. Is the President correct about the increase in overall company profits?
2. What classification of cost is most likely to be able to be increased on the cost-plus jobs? Why?
3. Is what the President proposes ethical? Why or why not?
4. What would you do if you were Sally? Why?
5. If Sally does go along with this proposal, are there risks to the company? What are they?

We are learning about notes receivables in my Intermediate Accounting class, and I am trying to understand the terms. My textbook states "When the interest stated on an interest-bearing note equals the effective (market) rate of interest, the note sells at face value.¹³ When the stated rate differs from the market rate, the cash exchanged (present value) differs from the face value of the note."

If someone could break this down in layman's terms I would really appreciate it. This is our first dip into this material, so no amount of over-simplification is too much.

Problem 16-7AA FIFO: Process cost summary, equivalent units, cost estimates LO C2, C3, C4, P4

[The following information applies to the questions displayed below.]

Dengo Co. makes a trail mix in two departments: roasting and blending. Direct materials are added at the beginning of each process, and conversion costs are added evenly throughout each process. The company uses the FIFO method of process costing. During October, the roasting department completed and transferred 26,000 units to the blending department. Of the units completed, 4,900 were from beginning inventory and the remaining 21,100 were started and completed during the month. Beginning work in process was 100% complete with respect to direct materials and 30% complete with respect to conversion. The company has 4,300 units (100% complete with respect to direct materials and 70% complete with respect to conversion) in process at month-end. Information on the roasting department’s costs of beginning work in process inventory and costs added during the month follows.

Problem 16-7A Part 1

Required:
1. Prepare the roasting department's process cost summary for October using the FIFO method. (Round "Cost per EUP" to 2 decimal places.)

Problem 16-7A Part 2

2. Prepare the journal entry dated October 31 to transfer the cost of completed units to the blending department. (Do not round your intermediate calculations.)

• Record the transfer of goods from Roasting to Blending.

Sell or Process Further Abica Coffee Company produces Columbian coffee in batches of 4,300 pounds. The standard quantity of materials required in the process is 4,300 pounds, which cost $6 per pound. Columbian coffee can be sold without further processing for $9 per pound. Columbian coffee can also be processed further to yield Decaf Columbian, which can be sold for $12 per pound. The processing into Decaf Columbian requires additional processing costs of $9,013 per batch. The additional processing also causes a 5% loss of product due to evaporation. a. Prepare a differential analysis dated October 6 on whether to sell regular Columbian (Alternative 1) or process further into Decaf Columbian (Alternative 2). For those boxes in which you must enter subtracted or negative numbers use a minus sign. Differential Analysis Sell Regular Columbian (Alt. 1) or Process Further into Decaf Columbian (Alt. 2) October 6 Sell Regular Columbian (Alternative 1) Process Further into Decaf Columbian (Alternative 2) Differential Effect on Income (Alternative 2) Revenues $ $ $ Costs Income (Loss) $ $ $ b. Should Abica sell Columbian coffee or process further and sell Decaf Columbian? c. Determine the price of Decaf Columbian that would cause neither an advantage nor a disadvantage for processing further and selling Decaf Columbian. Round your answer to two decimal places. $ per pound

Kiss the sky enterprises has bonds on th market making annual payments, with 11 years to maturity and selling for 790. At this price, the bonds yield 10 percent. What must the coupon rate be on the bonds 6.77 6.87 13.53 10.00 8.57

Complete the problems below on variance analysis.

Morgan Clay Products manufactures clay molded pottery on an assembly line. Its standard costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Molding Department and the Finishing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production.

Data for the Assembly Department for August 2017 are:
Work in process, beginning inventory: 2600 units
Direct materials (100% complete)
Conversion costs (35% complete)

Units started during August 715 units

Work in process, ending inventory: 520 units
Direct materials (100% complete)
Conversion costs (55% complete)

Costs for August:
Standard costs for Assembly:
Direct materials $18 per unit
Conversion costs $35.50 per unit

Work in process, beginning inventory:
Direct materials $12,600
Conversion costs $8250

Part 2A: Variance Problem
Castleton Corporation manufactured 36,000 units during March. The following fixed overhead data relates to March:
Actual Static Budget
Production 36,000 units 34,000 units
Machine-hours 6,960 hours 6,800 hours
Fixed overhead costs for March $164,700 $156,400
Compute the fixed overhead variances.

Part 2B: Variance Problem
Russo Corporation manufactured 21,000 air conditioners during November. The overhead cost-allocation base is $34.50 per machine-hour. The following variable overhead data pertain to November:

Actual Budgeted
Production 21,000 units 23,000 units
Machine-hours 12,700 hours 13,800 hours
Variable overhead cost per machine-hour:
$34.00 $34.50
Compute the variable overhead variances.

Alexander Corporation reports the following components of stockholders’ equity on December 31, 2016: Common stock—$25 par value, 50,000 shares authorized, 33,000 shares issued and outstanding $ 825,000 Paid-in capital in excess of par value, common stock 66,000 Retained earnings 350,000 Total stockholders’ equity $ 1,241,000 In year 2017, the following transactions affected its stockholders’ equity accounts. Jan. 2 Purchased 3,300 shares of its own stock at $25 cash per share. Jan. 7 Directors declared a $1.50 per share cash dividend payable on February 28 to the February 9 stockholders of record. Feb. 28 Paid the dividend declared on January 7. July 9 Sold 1,320 of its treasury shares at $30 cash per share. Aug. 27 Sold 1,650 of its treasury shares at $20 cash per share. Sept. 9 Directors declared a $2 per share cash dividend payable on October 22 to the September 23 stockholders of record. Oct. 22 Paid the dividend declared on September 9. Dec. 31 Closed the $55,000 credit balance (from net income) in the Income Summary account to Retained Earnings.

Required: 1. Prepare journal entries to record each of these transactions for 2017. 2. Prepare a statement of retained earnings for the year ended December 31, 2017. 3. Prepare the stockholders’ equity section of the company’s balance sheet as of December 31, 2017.

The following information is provided to assist you in evaluating the performance of the production operations of Studio Company: Units produced (actual) 57,000 Master production budget Direct materials $127,380 Direct labor 108,080 Overhead 167,910 Standard costs per unit Direct materials $1.65 × 2 gallons per unit of output Direct labor $14 per hour × 0.2 hour per unit Variable overhead $12.50 per direct labor-hour Actual costs Direct materials purchased and used $150,960 (81,600 gallons) Direct labor 134,231 (9,980 hours) Overhead 177,200 (61% is variable) Variable overhead is applied on the basis of direct labor-hours. Required: Calculate all variable production cost price and efficiency variances and fixed production cost price and production volume variances. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect, do not select either option.)