Haas Company manufactures and sells one product. The following information pertains to each of the company’s first three years of operations: Variable costs per unit: Manufacturing: Direct materials $ 22 Direct labor $ 14 Variable manufacturing overhead $ 5 Variable selling and administrative $ 3 Fixed costs per year: Fixed manufacturing overhead $ 270,000 Fixed selling and administrative expenses $ 210,000 During its first year of operations, Haas produced 60,000 units and sold 60,000 units. During its second year of operations, it produced 75,000 units and sold 50,000 units. In its third year, Haas produced 40,000 units and sold 65,000 units. The selling price of the company’s product is $52 per unit. Required: 1. Compute the company’s break-even point in unit sales. 2. Assume the company uses variable costing: a. Compute the unit product cost for Year 1, Year 2, and Year 3. b. Prepare an income statement for Year 1, Year 2, and Year 3. 3. Assume the company uses absorption costing: a. Compute the unit product cost for Year 1, Year 2, and Year 3. b. Prepare an income statement for Year 1, Year 2, and Year 3.

In 2018, Wilma Way’s sole proprietorship, WW Bookstore, generated $120,000 net profit. In addition, Wilma recognized a $17,000 gain on the sale of business furniture and shelving, all of which was recaptured as ordinary income. The business checking account earned $960 interest income.

Compute Wilma’s 2018 self-employment tax.

Compute Wilma's allowable Section 199A deduction, assuming $43,000 of W-2 wages and $90,000 unadjusted basis of tangible depreciable property.

Compute Wilma’s 2018 taxable income from her bookstore activity.

The stockholders’ equity accounts of Bramble Corp. on January 1, 2017, were as follows.

During 2017, the corporation had the following transactions and events pertaining to its stockholders’ equity.

A. Enter the beginning balances in the accounts and post the journal entries to the stockholders’ equity accounts. (Post entries in the order of journal entries posted in the previous part. For accounts that have zero ending balance, the entry should be the balance date and zero for the amount.)

B Prepare the stockholders’ equity section of the balance sheet at December 31, 2017.

C. Calculate the payout ratio, earnings per share, and return on common stockholders’ equity. (Round earning per share to 2 decimal places, e.g. $2.66 and all other answers to 1 decimal place. 17.5%.)

Being a franchisor seems to be a mechanism for growth, but what are the growth prospects for entrepreneurs that are franchisees? Isn’t the entrepreneur limited in his or her ability to pursue all the different types of growth strategies? Is being a franchisee simply substituting one type of employment for another type of employment? How can a franchisee grow his or her business (es)?

Hickory Company manufactures two products—13,000 units of Product Y and 5,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all $630,000 of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z:

Foundational 7-5

5. What is the activity rate for the Product Design activity cost pool?

6. What is the activity rate for the General Factory activity cost pool? (Round your answer to 2 decimal places.)

7. Which of the four activities is a batch-level activity?

Machine setups activity

Machining activity

Product design activity

General factory activity

8. Which of the four activities is a product-level activity?

General factory activity

Product design activity

Machine setups activity

Machining activity

9. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? (Round all intermediate calculations to 2 decimal places.)

10. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z?

11. Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z? (Round your "Percentage" answers to 2 decimal place.)

12. Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z? (Round your "Percentage" answers to 2 decimal places.)

13. Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z? (Round your "Percentage" answers to 2 decimal places.)

14. Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Product Z?

15. Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z? (Round your

The Geneva Company manufactures the famous Ticktock watch on an assembly-line basis. January 1 work-in-process consisted of 5,000 units partially completed. During the month, an additional 110,000 units were started, and 105,000 units were completed. The ending work-in-process was 60% complete as to conversion costs. Conversion costs are added evenly throughout the process. The following conversion costs were incurred: Beginning costs for work-in-process $1,500 Total current conversion costs $273,920 The conversion costs assigned to ending work-in-process totaled $15,360 using the FIFO method of process costing.

Required information [The following information applies to the questions displayed below.] Washington County’s Board of Representatives is considering the construction of a longer runway at the county airport. Currently, the airport can handle only private aircraft and small commuter jets. A new, long runway would enable the airport to handle the midsize jets used on many domestic flights. Data pertinent to the board’s decision appear below. Cost of acquiring additional land for runway $ 82,500 Cost of runway construction 280,000 Cost of extending perimeter fence 19,908 Cost of runway lights 45,000 Annual cost of maintaining new runway 22,500 Annual incremental revenue from landing fees 57,500 In addition to the preceding data, two other facts are relevant to the decision. First, a longer runway will require a new snowplow, which will cost $180,000. The old snowplow could be sold now for $18,000. The new, larger plow will cost $16,000 more in annual operating costs. Second, the County Board of Representatives believes that the proposed long runway, and the major jet service it will bring to the county, will increase economic activity in the community. The board projects that the increased economic activity will result in $94,000 per year in additional tax revenue for the county. In analyzing the runway proposal, the board has decided to use a 10-year time horizon. The county’s hurdle rate for capital projects is 18 percent. Use Appendix A for your reference. (Use appropriate factor(s) from the tables provided.) In analyzing the runway proposal, the board has decided to use a 10-year time horizon. The county’s hurdle rate for capital projects is 18 percent. The County Board of Representatives believes that if the county conducts a promotional effort costing $28,000 per year, the proposed long runway will result in substantially greater economic development than was projected originally. However, the board is uncertain about the actual increase in county tax revenue that will result. Required: Suppose the board builds the long runway and conducts the promotional campaign. What would the increase in the county’s annual tax revenue need to be in order for the proposed runway’s internal rate of return to equal the county’s hurdle rate of 18 percent? (Round intermediate and final answer to the nearest dollar amount.)

Problem 6-2A (Part Level Submission)

Dunbar Distribution markets CDs of numerous performing artists. At the beginning of March, Dunbar had in beginning inventory 3,613 CDs with a unit cost of $10. During March, Dunbar made the following purchases of CDs.

March 5 2,890 @ $12

March 13 5,058 @ $13

March 21 7,225 @ $14

March 26 2,890 @ $16

During March 17,340 units were sold. Dunbar uses a periodic inventory system.

Costs of goods available for sale $283, 954

Average cost $ 13.099

QUESTION:

Determine (1) the ending inventory and (2) the cost of goods sold under each of the assumed cost flow methods (FIFO, LIFO, and average-cost). (Round answerS to 0 decimal places, e.g. 125.)

The ending inventory FIFO LIFO AVERAGE-COST

$? $? $?

The cost of goods sold FIFO LIFO AVERAGE-COST

$? $? $?

Comprehensive Variance Problem
The standard cost sheet for Chambers Company, which manufactures one product, follows:
Direct materials, 40 yards at $2.00 per yard . . . . . . . . . . . . . . . $ 80
Direct labor, 5 hours at $20 per hour. . . . . . . . . . . . . . . . . . . . . 100
Factory overhead applied at 80% of direct labor
(variable costs = $60; fixed costs = $20). . . . . . . . . . . . . . . . . . 80
Variable selling and administrative . . . . . . . . . . . . . . . . . . . . . . 64
Fixed selling and administrative . . . . . . . . . . . . . . . . . . . . . . . .   40
Total unit costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $364
Standards have been computed based on a master budget activity level of 28,800 direct labor-
hours per month. Actual activity for the past month was as follows:
Materials used. . . . . . . . . . . . . . 228,000 yards at $2.05 per yard
Direct labor . . . . . . . . . . . . . . . . 25,200 hours at $20.40 per hour
Total factory overhead. . . . . . . . $444,000
Production . . . . . . . . . . . . . . . . . 5,000 units
Required
Prepare variance analyses for the variable and fixed costs. Indicate which variances cannot be
computed. Materials are purchased as they are used

The management and discussion and analysis (MD&A) section of the annual report provides valuable information on an entity's revenue and expenses. The information contained therein, helps deriving various ratio analyses.

What information do you find in the MD & A that is important in assessing the earnings and earnings potential of a selected company and why?

Determine what the initial basis of an asset would be in the following situations:

1. purchase of asset

2. Bargain Purchase

3. Lump-sum purchase

4. Property acquired by gift

5. Property acquired from a decedent

6. Property converted from personal use to business or income-producing use

Complete the table using the figures provided for the three products: A, B and C.

Last month’s budget for sales

Last month’s sales (actuals)

Statement of Cash Flows—A method of reporting the cash flows from operating activities as the net income from operations adjusted for all deferrals of past cash receipts and payments and all accruals of expected future cash receipts and payments.Indirect Method

The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows:

Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows:

1. Equipment and land were acquired for cash.
2. There were no disposals of equipment during the year.
3. The investments were sold for $98,420 cash.
4. The common stock was issued for cash.
5. There was a $72,060 credit to Retained Earnings for net income.
6. There was a $43,930 debit to Retained Earnings for cash dividends declared.

Required:

Prepare a statement of cash flows, using the indirect method of presenting The section of the statement of cash flows that reports the cash transactions affecting the determination of net income.cash flows from operating activities. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.

The Polaris Company uses a job-order costing system. The following transactions occurred in October:

1. Raw materials purchased on account, $210,000.
2. Raw materials used in production, $192,000 ($153,600 direct materials and $38,400 indirect materials).
3. Accrued direct labor cost of $48,000 and indirect labor cost of $22,000.
4. Depreciation recorded on factory equipment, $106,000.
5. Other manufacturing overhead costs accrued during October, $129,000.
6. The company applies manufacturing overhead cost to production using a predetermined rate of $10 per machine-hour. A total of 76,200 machine-hours were used in October.
7. Jobs costing $514,000 according to their job cost sheets were completed during October and transferred to Finished Goods.
8. Jobs that had cost $451,000 to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at 36% above cost.

Required:

1. Prepare journal entries to record the transactions given above.

2. Prepare T-accounts for Manufacturing Overhead and Work in Process. Post the relevant transactions from above to each account. Compute the ending balance in each account, assuming that Work in Process has a beginning balance of $33,000.

Suppose Vince dies this year with a gross estate of $25 million and no adjusted prior gifts. Assume the estate qualifies for the martial deduction.

Calculate the amount of estate tax due (if any) under the following alternative conditions for 2018. (Refer to Exhibit 25-1 and Exhibit 25-2.)

Exhibit 25-2 The Exemption Equivalent

Year of Transfer                Gift Tax                 Estate Tax           

2018                                       11,180,000           11,180,000

Required:

1. Vince leaves his entire estate to his spouse, Millie.
2. Vince leaves $10 million to Millie and the remainder to charity.
3. Vince leaves $10 million to Millie and the remainder to his son, Paul.
4. Vince leaves $10 million to Millie and the remainder to a trust whose trustee is required to pay income to Millie for her life and the remainder to Paul(

For all requirements, enter your answer in millions rounded to 3 decimal places. Leave no answer blank. Enter zero if applicable.)

A. Amount of estate tax  

B. Amount of estate tax  

C. Amount of estate tax  

D. Amount of estate tax