The following information is available about the company: |
a. | All sales during the year were on account. |
b. | There was no change in the number of shares of common stock outstanding during the year. |
c. | The interest expense on the income statement relates to the
bonds payable; the amount of bonds outstanding did not change during the year. |
d. | Selected balances at the beginning of the current year were: |
Accounts receivable | $ | 220,000 |
Inventory | $ | 330,000 |
Total assets | $ | 1,415,000 |
e. | Selected financial ratios computed from the statements below for the current year are: |
Earnings per share | $ | 3.06 | |
Debt-to-equity ratio | 0.880 | ||
Accounts receivable turnover | 15.0 | ||
Current ratio | 2.00 | ||
Return on total assets | 12 | % | |
Times interest earned ratio | 6.0 | ||
Acid-test ratio | 1.19 | ||
Inventory turnover | 9.0 | ||
Required: |
Compute the missing amounts on the company's financial statements. (Hint: What’s the difference between the acid-test ratio and the current ratio?) (Do not round intermediate calculations.) |
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In: Accounting
Afternoon I would like to use Apple as my example Go to Yahoo Finance and select a company. Then, share with the class either the company’s gross profit or total operating expenses, as well as the company’s net income. Can you please make sure your answer is clear where I can read it my eyes are really bad thank you
In: Accounting
In: Accounting
Plasto Corporation manufactures a variety of plastic products, including a series of molded chairs. The three models of molded chairs, which are all variations of the same design, are Standard (can be stacked), Deluxe (with arms), and Executive (with arms and padding). The company uses batch manufacturing and has an operation-costing system. The production process includes an extrusion operation and subsequent operations to form, trim, and finish the chairs. Plastic sheets are produced by the extrusion operation, some of which are sold directly to other manufacturers. During the forming operation, the remaining plastic sheets are molded into chair seats and the legs are added; the Standard model is sold after this operation. During the trim operation, the arms are added to the Deluxe and Executive models and the chair edges are smoothed. Only the Executive model enters the finish operation where the padding is added. All of the units produced receive the same steps within each operation. The May production run had a total manufacturing cost of $988,290. The units of production and direct-material costs incurred were as follows:
Units Produced | Extrusion Materials | Form Materials | Trim Materials | Finish Materials | ||||||||||
Plastic sheets | 4,800 | $ | 62,400 | |||||||||||
Standard model | 6,100 | 79,300 | $ | 24,400 | ||||||||||
Deluxe model | 3,300 | 42,900 | 13,200 | $ | 9,900 | |||||||||
Executive model | 2,400 | 31,200 | 9,600 | 7,200 | $ | 14,400 | ||||||||
Total | 16,600 | $ | 215,800 | $ | 47,200 | $ | 17,100 | $ | 14,400 | |||||
Manufacturing costs applied during the month of May were as follows:
Extrusion Operation | Form Operation | Trim Operation | Finish Operation | |||||||||||||
Direct labor | $ | 192,560 | $ | 51,000 | $ | 32,490 | $ | 19,200 | ||||||||
Manufacturing overhead | 232,400 | 90,600 | 46,740 | 28,800 | ||||||||||||
Required:
1. For each product produced by Plasto Corporation during the month of May, determine the (a) unit cost and (b) total cost. Be sure to account for all costs incurred during the month. (Round "Unit costs" to 2 decimal places.)
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In: Accounting
In: Accounting
Problem 23-4A (Part Level Submission) Kansas Company uses a standard cost accounting system. In 2017, the company produced 27,600 units. Each unit took several pounds of direct materials and 1.6 standard hours of direct labor at a standard hourly rate of $13.00. Normal capacity was 49,700 direct labor hours. During the year, 130,800 pounds of raw materials were purchased at $0.91 per pound. All materials purchased were used during the year. (a) Your answer is correct. If the materials price variance was $5,232 favorable, what was the standard materials price per pound? (Round answer to 2 decimal places, e.g. 2.75.) Standard materials price per pound $ Click if you would like to Show Work for this question: Open Show Work Show Solution Show Answer Link to Text Link to Text Attempts: 1 of 3 used (b) If the materials quantity variance was $14,136 unfavorable, what was the standard materials quantity per unit? (Round answer to 1 decimal place, e.g. 1.5.) Standard materials quantity per unit
In: Accounting
Marvel Parts, Inc., manufactures auto accessories. One of the company’s products is a set of seat covers that can be adjusted to fit nearly any small car. The company has a standard cost system in use for all of its products. According to the standards that have been set for the seat covers, the factory should work 1,045 hours each month to produce 2,090 sets of covers. The standard costs associated with this level of production are:
Total | Per Set of Covers |
||||
Direct materials | $ | 49,533 | $ | 23.70 | |
Direct labor | $ | 10,450 | 5.00 | ||
Variable manufacturing overhead (based on direct labor-hours) | $ | 4,598 | 2.20 | ||
$ | 30.90 | ||||
During August, the factory worked only 800 direct labor-hours and produced 1,900 sets of covers. The following actual costs were recorded during the month:
Total | Per Set of Covers |
||||
Direct materials (6,500 yards) | $ | 44,460 | $ | 23.40 | |
Direct labor | $ | 9,880 | 5.20 | ||
Variable manufacturing overhead | $ | 4,560 | 2.40 | ||
$ | 31.00 | ||||
At standard, each set of covers should require 3.0 yards of material. All of the materials purchased during the month were used in production.
Required:
1. Compute the materials price and quantity variances for August.
2. Compute the labor rate and efficiency variances for August.
3. Compute the variable overhead rate and efficiency variances for August.
In: Accounting
A manufacturing company's weekly payroll is $800,000 for a 5-day work week beginning each Monday and ending each Friday. The last time salaries and wages were recorded was Friday, December 26. What adjustment is needed on December 31, the last day of the company's fiscal period?
The answer is: Increase Wages Expense by $480,000 but I'm unsure how you get the number $480,000?
In: Accounting
1). costs are costs that are incurred for the
production requirements of a certain period.
T/F
2) budgetary slack can be avoided if lower and mid level managers
are requested to support all of their spending requirements with
specific operational plans.
T/F
3) for an automotive repair shop the wages of mechanics would be
classified as direct labor cost.
T/F
4) when goods are sold their cost are transferred from
work-in-process to finish Goods
T/F
In: Accounting
Option #1: Acquisition Costs: Land and Building
You are the project manager at Janson Manufacturing. Feedback from the annual employee’s survey revealed that employees were interested in having a fitness center. Thus, last week, you closed the deal and purchased land and a building for $6 million. Other expenses incurred in connection to this purchase included:
Attorney fees for the contract | $10,000 |
Commissions | 55,000 |
Title insurance | 8,500 |
Pro-rated Property taxes | 75,000 |
An independent appraisal was requested to determine the individual fair value estimates. The land appraised at $5.5 million and the building at $1.9 million.
Spending on the property started right away. Janson installed fences and completed the driveway at a cost of $45,000 and $75,000, respectively.
Required:
Answers must be submitted in an Excel file showing all calculations used to arrive at the final answers. Provide comments on the spreadsheet to explain the rationale for the amounts recorded.
In: Accounting
Emerson Process Management, a global supplier of measurement, analytical, and monitoring instruments and services based in Austin, Texas, had a new data warehouse designed for analyzing customer activity to improve service and marketing that was full of inaccurate and redundant data. The data in the warehouse came from numerous transaction processing systems in Europe, Asia, and other locations around the world. The team that designed the warehouse had assumed that sales groups in all these areas would enter customer names and addresses the same way, regardless of their location. In fact, cultural differences combined with complications from absorbing companies that Emerson had acquired led to multiple ways of entering quote, billing, shipping, and other data. Assess the potential business impact of these data quality problems. What decisions have to be made and steps taken to reach a solution?
In: Accounting
Bledsoe Corporation has provided the following data for the month of November:
Beginning | Ending | ||||||||
Raw materials | $ | 26,800 | $ | 22,800 | |||||
Work in process | $ | 18,800 | $ | 11,800 | |||||
Finished Goods | $ | 49,800 | $ | 57,800 | |||||
Additional information:
Raw materials purchases | $ | 73,800 | |||||
Direct labor cost | $ | 93,800 | |||||
Manufacturing overhead cost incurred | $ | 43,980 | |||||
Indirect materials included in manufacturing overhead cost incurred | $ | 4,180 | |||||
Manufacturing overhead cost applied to Work in Process | $ | 42,800 | |||||
Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.
Required:
Prepare a Schedule of Cost of Goods Manufactured and a Schedule of Cost of Goods Sold.
In: Accounting
Depreciation by Two Methods; Sale of Fixed Asset
New lithographic equipment, acquired at a cost of $625,000 on March 1 of Year 1 (beginning of the fiscal year), has an estimated useful life of five years and an estimated residual value of $53,700. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year.
On March 4 of Year 5, the equipment was sold for $91,500.
Required:
1. Determine the annual depreciation expense for each of the estimated five years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by the following methods:
a. Straight-line method
Year | Depreciation Expense |
Accumulated Depreciation, End of Year |
Book Value, End of Year |
1 | $ | $ | $ |
2 | $ | $ | $ |
3 | $ | $ | $ |
4 | $ | $ | $ |
5 | $ | $ | $ |
b. Double-declining-balance method
Year | Depreciation Expense |
Accumulated Depreciation, End of Year |
Book Value, End of Year |
1 | $ | $ | $ |
2 | $ | $ | $ |
3 | $ | $ | $ |
4 | $ | $ | $ |
5 | $ | $ | $ |
2. Journalize the entry to record the sale assuming that the manager chose the double declining-balance method. If an amount box does not require an entry, leave it blank.
3. Journalize the entry to record the sale in (2) assuming that the equipment was sold for $78,600 instead of $91,500. If an amount box does not require an entry, leave it blank.
In: Accounting
Determine the amount of sales (units) that would be necessary under
Break-Even Sales Under Present and Proposed Conditions
Darby Company, operating at full capacity, sold 86,400 units at a price of $51 per unit during the current year. Its income statement for the current year is as follows:
Sales | $4,406,400 | ||
Cost of goods sold | 2,176,000 | ||
Gross profit | $2,230,400 | ||
Expenses: | |||
Selling expenses | $1,088,000 | ||
Administrative expenses | 1,088,000 | ||
Total expenses | 2,176,000 | ||
Income from operations | $54,400 |
The division of costs between fixed and variable is as follows:
Variable | Fixed | |||
Cost of goods sold | 70% | 30% | ||
Selling expenses | 75% | 25% | ||
Administrative expenses | 50% | 50% |
Management is considering a plant expansion program that will permit an increase of $357,000 in yearly sales. The expansion will increase fixed costs by $35,700, but will not affect the relationship between sales and variable costs.
Required:
1. Determine the total variable costs and the total fixed costs for the current year. Enter the final answers rounded to the nearest dollar.
Total variable costs | $ |
Total fixed costs | $ |
2. Determine (a) the unit variable cost and (b) the unit contribution margin for the current year. Enter the final answers rounded to two decimal places.
Unit variable cost | $ |
Unit contribution margin | $ |
3. Compute the break-even sales (units) for the
current year. Enter the final answers rounded to the nearest whole
number.
units
4. Compute the break-even sales (units) under
the proposed program for the following year. Enter the final
answers rounded to the nearest whole number.
units
5. Determine the amount of sales (units) that
would be necessary under the proposed program to realize the
$54,400 of income from operations that was earned in the current
year. Enter the final answers rounded to the nearest whole
number.
units
6. Determine the maximum income from operations
possible with the expanded plant. Enter the final answer rounded to
the nearest dollar.
$
7. If the proposal is accepted and sales remain
at the current level, what will the income or loss from operations
be for the following year? Enter the final answer rounded to the
nearest dollar.
$
8. Based on the data given, would you recommend accepting the proposal?
Choose the correct answer.
In: Accounting
Here are comparative balance sheets for Velo Company.
Velo Company |
||||||
Assets |
2020 |
2019 |
||||
Cash |
$73,400 |
$33,100 |
||||
Accounts receivable |
85,800 |
71,200 |
||||
Inventory |
170,200 |
187,000 |
||||
Land |
72,800 |
101,000 |
||||
Equipment |
260,600 |
200,800 |
||||
Accumulated depreciation—equipment |
(66,100 |
) |
(33,900 |
) |
||
Total |
$596,700 |
$559,200 |
||||
Liabilities and Stockholders’ Equity |
||||||
Accounts payable |
$35,000 |
$47,500 |
||||
Bonds payable |
151,400 |
203,400 |
||||
Common stock ($1 par) |
217,600 |
174,100 |
||||
Retained earnings |
192,700 |
134,200 |
||||
Total |
$596,700 |
$559,200 |
Additional information:
1. | Net income for 2020 was $103,600. | |
2. | Cash dividends of $45,100 were declared and paid. | |
3. | Bonds payable amounting to $52,000 were redeemed for cash $52,000. | |
4. | Common stock was issued for $43,500 cash. | |
5. | No equipment was sold during 2020, but land was sold at cost. |
Prepare a statement of cash flows for 2020 using the indirect
method. (Show amounts that decrease cash flow with
either a - sign e.g. -15,000, or in parenthesis e.g.
(15,000).)
Velo Company |
In: Accounting