Statement of Cost of Goods Manufactured for a Manufacturing Company

Cost data for Disksan Manufacturing Company for the month ended January 31 are as follows:

Inventories	January 1		January 31
Materials	$169,750		$144,290
Work in process	112,040		95,230
Finished goods	88,270		96,670

Direct labor		$305,550
Materials purchased during January		325,920
Factory overhead incurred during January:
	Indirect labor	32,590
	Machinery depreciation	19,690
	Heat, light, and power	6,790
	Supplies	5,430
	Property taxes	4,750
	Miscellaneous costs	8,830

a. Prepare a cost of goods manufactured statement for January.

Disksan Manufacturing Company
Statement of Cost of Goods Manufactured
For the Month Ended January 31
Work in process inventory, January 1			$112,040
Direct materials:
Materials inventory, January 1	$
Purchases	325,920
Cost of materials available for use	$
Less materials inventory, January 31	144290
Cost of direct materials used		$
Direct labor			305550
Factory overhead:
Indirect labor	$32,590
Machinery depreciation	19,690
Heat, light, and power	6,790
Supplies	5,430
Property taxes	4,750
Miscellaneous costs	8,830
Total factory overhead			78,080
Total manufacturing costs incurred during January
Total manufacturing costs			$
Less work in process inventory, January 31			95230
Cost of goods manufactured			$

b. Determine the cost of goods sold for January.
$

___________________________________________________________________________________________________________________________________________________

Manufacturing Income Statement, Statement of Cost of Goods Manufactured

Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of December.

	On Company		Off Company
Materials inventory, December 1	$66,090		$83,930
Materials inventory, December 31	(a)		94,840
Materials purchased	167,870		(a)
Cost of direct materials used in production	177,120		(b)
Direct labor	249,160		188,840
Factory overhead	77,330		94,000
Total manufacturing costs incurred in December	(b)		543,030
Total manufacturing costs	630,500		745,300
Work in process inventory, December 1	126,890		202,270
Work in process inventory, December 31	107,070		(c)
Cost of goods manufactured	(c)		537,990
Finished goods inventory, December 1	111,690		94,000
Finished goods inventory, December 31	116,980		(d)
Sales	974,170		839,300
Cost of goods sold	(d)		543,030
Gross profit	(e)		(e)
Operating expenses	126,890		(f)
Net income	(f)		186,320

Required:

1. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers.

Letter	On Company	Off Company
a.	$	$
b.	$	$
c.	$	$
d.	$	$
e.	$	$
f.	$	$

2. Prepare On Company's statement of cost of goods manufactured for December.

On Company
Statement of Cost of Goods Manufactured
For the Month Ended December 31
Work in process inventory, December 1			$
Direct materials:
Materials inventory, December 1	$
Purchases
Cost of materials available for use	$
Less materials inventory, December 31
Cost of direct materials used in production		$
Direct labor
Factory overhead
Total manufacturing costs incurred during December
Total manufacturing costs			$
Less materials inventory, December 31
Cost of goods manufactured			$

3. Prepare On Company's income statement for December.

On Company
Income Statement
For the Month Ended December 31
Sales		$
Cost of goods sold:
Finished goods inventory, December 1	$
Cost of goods manufactured
Cost of finished goods available for sale	$
Less finished goods inventory, December 31
Cost of goods sold
Gross profit		$
Operating expenses
Net income		$

Thank you so much for your help!!

1. Explain value-based management and how shareholder value relates to the interaction between product and capital markets. How does corporate governance impact the decisions of management?

2. Discuss how accounting standards have developed in the United States. What factors have had the most influence on accounting and how the standards have developed over time? What organization(s) do you feel have influenced US GAAP the most? Why?

You are a certified public accountant. A client enters your office on April 14 with a bag full of disorganized documents and receipts. He asks you to prepare his tax return and would be happy to file an extension. However, the client expresses some urgency and would like to file the actual tax return as soon as possible because he says, “I should get a refund for all the huge deductions.”When looking through the client’s documents and compiling the tax return, you realize that there are not enough supporting documents for deductions that would result in a refund. Review the following to inform your discussion: Circular 230: Regulations Governing Practice Before the Internal Revenue Service and the Practitioners' Responsibilities in Complying With Records Requests.

Required:

Suggest two alternate solutions to communicate to the client while being in compliance with Circular 230.

Flexible Budgeting and Variance Analysis

I Love My Chocolate Company makes dark chocolate and light chocolate. Both products require cocoa and sugar. The following planning information has been made available:

Standard Amount per Case
	Dark Chocolate		Light Chocolate		Standard Price per Pound
Cocoa	10 lbs.		7 lbs.		$4.60
Sugar	8 lbs.		12 lbs.		0.60
Standard labor time	0.3 hr.		0.4 hr.

	Dark Chocolate		Light Chocolate
Planned production	3,900 cases		10,300 cases
Standard labor rate	$14.50 per hr.		$14.50 per hr.

I Love My Chocolate Company does not expect there to be any beginning or ending inventories of cocoa or sugar. At the end of the budget year, I Love My Chocolate Company had the following actual results:

	Dark Chocolate		Light Chocolate
Actual production (cases)	3,700		10,700
	Actual Price per Pound		Actual Pounds Purchased and Used
Cocoa	$4.70		112,500
Sugar	0.55		154,100
	Actual Labor Rate		Actual Labor Hours Used
Dark chocolate	$14.10 per hr.		1,010
Light chocolate	14.90 per hr.		4,390

Required:

1. Prepare the following variance analyses for both chocolates and the total, based on the actual results and production levels at the end of the budget year:

     a. Direct materials price variance, direct materials quantity variance, and total variance.

     b. Direct labor rate variance, direct labor time variance, and total variance.

Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

a.	Direct materials price variance	$
	Direct materials quantity variance	$
	Total direct materials cost variance	$
b.	Direct labor rate variance	$
	Direct labor time variance	$
	Total direct labor cost variance	$

2. The variance analyses should be based on the   amounts at   volumes. The budget must flex with the volume changes. If the   volume is different from the planned volume, as it was in this case, then the budget used for performance evaluation should reflect the change in direct materials and direct labor that will be required for the   production. In this way, spending from volume changes can be separated from efficiency and price variances.

Direct Materials, Direct Labor, and Factory Overhead Cost Variance Analysis

Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 70,000 units of product were as follows:

	Standard Costs		Actual Costs
Direct materials	210,000 lbs. at $5.30		207,900 lbs. at $5.20
Direct labor	17,500 hrs. at $17.50		17,900 hrs. at $17.70
Factory overhead	Rates per direct labor hr.,
	based on 100% of normal
	capacity of 18,260 direct
	labor hrs.:
		Variable cost, $4.30	$74,500 variable cost
		Fixed cost, $6.80	$124,168 fixed cost

Each unit requires 0.25 hour of direct labor.

Required:

a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Direct Materials Price Variance	$
Direct Materials Quantity Variance	$
Total Direct Materials Cost Variance	$

b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Direct Labor Rate Variance	$
Direct Labor Time Variance	$
Total Direct Labor Cost Variance	$

c. Determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Variable factory overhead controllable variance	$
Fixed factory overhead volume variance	$
Total factory overhead cost variance	$

7. In 2019, Taxpayer (“T”) is a single, 65 year-old individual who is a U.S. citizen. T turned 65 in 2019. T receives $18,000 of social security income in 2019 (the first year T received Social Security Benefits). Also, T received $6,000 of interest income from a municipal bond in both 2018 and 2019. On June 1, 2018, T took a job with a multi-national corporation which paid T $5,000 per month. As a condition of the job, T is required to work overseas, in the country of Austria, and T did in fact work in Austria for 214 days (From June 1 – December 31) in 2018. T is offered to continue to work (still in Austria and still for $5,000 per month) for seven additional months (from January 1 until the end of July, which is 211 days) in 2019, at which point T’s position would terminate. T is trying to decide whether T wants to continue to work for seven months in 2019 or quit on January 1. (These are T’s only transactions during 2018 and 2019).

a. What is T’s Gross Income in 2019 if T continues to work through July of 2019? __________________________________

b. What is T’s Gross Income in 2019 if T does NOT continue to work in 2019? __________________________________

c. Excluding the effects of the payroll tax and any credits, What is the economic benefit to T of continuing to work for 7 months in 2019 (meaning how much total extra money, after tax, will T have as a result of continuing to work in 2019)? _____________________

Please read carefully what is required and answer all the sections. if you cannot solve, leave to someone who can.Thanks.

You are currently working at a mid-sized certified public accounting firm. Your client is Bob Jones. Bob, age 60 and single, has recently retired from IBM. He has $690,000 available in his 401(k) fund and he is thinking of using that money to open a used car business that will be located at 210 Ocean View Drive in Pensacola, Florida. Bob has estimated that the business might make $300,000 in taxable income. Bob’s personal wealth including investments in land, stocks, and bonds is about $14,000,000. He reported an interest income of $20,000 and dividend income of $6,000 last year. The $14,000,000 includes land worth $9,000,000 that Bob bought in 1966 for $450,000. He is also considering transferring a possible 40% interest in his new business to his daughter Mandy, age 23 and single.

Required:

A. Prepare a detailed calculation of the capital gain and income tax supported and explained with authority from the tax code. Use the Capital Gains Tax Worksheet to calculate Bob's income tax. I am looking for a step by step calculation and explanation of the long term capital gain, income tax, and after-tax proceeds from the sale of Bob's land.  Also, please note the long term capital gains tax rate is 20% and there is a 3.8% tax on net investment income that applies.

B. Identify the tax consequences on the sale or exchange of the land consistent with capital gain rules. Consider the selling expense, broker’s fees, closing costs, appraisals, and surveys and the correct schedule form to complete.

C. Describe the after tax effects on the client’s cash flow based on the sale of the land that is needed to provide the funds necessary to start the business. Consider including capital gains tax rules.

D. Explain whether or not the client and his child should take a salary or cash distribution according to tax purposes and Internal Revenue Code and Treasury regulations. Consider the type of business which is an S Corporation and the tax effect whether it is salary, dividends, or cash withdrawal. Looking for a summary discussion of the income tax consequences to Bob and to his business of taking a salary vs. a cash distribution

Question 2 REQUIRED:

(1) Complete the following partial worksheet.

2. (2) Using your worksheet information, prepare closing entries (for December 31 of the current year) in the journal paper on the next page. Note: Explanations are NOT required.

3. (3) Assuming the journal entries prepared in part (2) have been posted, prepare a Post-Closing Trial Balance (on the next page). Hint: you may find it helpful to use a T-account for calculating Capital.

account titles adjusted trial balance    income statement statement of changes in equity or balance sheet

	DR	CR	DR	CR	DR	CR
Cash	6,500
Accounts Receivable	1,500
Equipment	7,000
Accum. Dep. – Equipment		1,500
Accounts Payable		12,000
Unearned Revenue		2,000
Hugh Betcha, Capital		7,500
Hugh Betcha, Withdrawals	7,000
Fees Earned		7,000
Service Revenue		8,000
Wages Expense	9,000
Rent Expense	7,000
Totals	38,000	38,000

Assume you are starting a new business involving the manufacture and sale of a new product. Raw materials costs are $45 per product. Direct labor costs are expected to be $25 per product, Manufacturing Overhead is expected to cost $18 per product. You expect to sell each product for $172. You plan to produce 120 products next month and expect to sell 85 products. During the second month, you plan to produce 120 products but expect sales in the month to be 110 products. During the third month you expect to produce 120 products but sell 135 products Prepare a production schedule (units & dollars), a raw materials and finished goods inventory schedule (units & dollars), and the top part of an income statement (sales, cost of goods sold and gross profit) for the three months.

Please make a way to answer all the questions. I cannot separate the questions anymore because I only have 1 question left to post here on Chegg, so please be considerate. Thank youu!

21. Which of the following statements is true of treasury stock?

a.It usually has a debit balance.

b.It is classified as an asset on the balance sheet.

c.It is considered outstanding stock.

d.It allows management to vote for members of the board of directors.

22. When common stock is issued in exchange for a noncash asset and the market value of the stock cannot be determined, the acquired asset should usually be recorded at an amount equal to the

a.book value of the noncash asset.

b.fair value of the noncash asset.

c.undepreciated cost of the noncash asset.

d.book value of the stock.

23. If treasury stock is sold for less than its cost, and there were no previous treasury stock sales, the difference between the sales price and cost is debited to

a.paid-In capital, treasury stock.

b.paid-in capital in excess of par.

c.retained earnings.

d.common stock.

24. Treasury stock is classified on the balance sheet as what type of account?

a.Current asset

b.Contributed capital

c.Long-term investment

d.Contra-equity

25. A loss on the sale of treasury stock is recognized when treasury stock is sold at

a.a higher price than the stock's market value.

b.a higher price than the stock's cost.

c.a higher price than the stock's par or stated value.

d.None of these are correct.

26. Treasury stock is stock that is

a.issued and outstanding.

b.authorized and outstanding.

c.issued but not outstanding.

d.authorized but not issued.

27. A Paid-In Capital account can be credited with all of the following transactions EXCEPT

a.the issuance of no-par stock with a stated value.

b.the purchase of treasury stock.

c.the issuance of par stock issued at a price greater than par value.

d.the reissuance of treasury stock.

28. When common stock is issued in exchange for a noncash asset and the market value of the stock is determinable, the acquired asset should usually be recorded at an amount equal to

a.the market value of the stock.

b.the par value of the stock.

c.the book value of the noncash asset.

d.the fair value of the noncash asset.

29. Which of the following is NOT true regarding "legal capital"?

a.The dollar amount of legal capital is established by federal statutes.

b.It is intended as a means to protect a company's creditors.

c.It is intended to prevent corporations from paying excessive dividends.

d.It represents an amount that cannot be returned to the owners so long as the corporation exists.

30. Compared with preferred stock, common stock usually has a favorable preference in terms of

a.dividends.

b.resale value.

c.voting rights.

d.liquidated assets.

31. Which of the basic stockholder rights do preferred stockholders normally give up?

a.The right to vote.

b.The right to receive dividends when they are declared.

c.The right to excess assets after creditor claims are satisfied.

d.All of the above.

32. Which of the following is a basic right of a preferred stockholder?

a.The preemptive right.

b.The right to receive a dividend.

c.The right to vote for the board of directors.

d.All of these.

33. The investors in a corporation are called

a.board of directors.

b.corporate owners.

c.stockholders.

d.management.

34. Which of the following is NOT a basic right of a common stockholder?

a.The right to receive a dividend.

b.The preemptive right.

c.The right to vote for the board of directors.

d.All of these are basic rights of a common stockholder.

35. Which type of business organization is characterized by limited liability?

a.Proprietorship

b.Partnership

c.Corporation

d.Corporation, proprietorship, and partnership

36. Which of the following is NOT true of a corporation?

a.A corporation has the ability to raise large amounts of capital.

b.The owners of a corporation have unlimited liability.

c.A corporation has easy transferability of ownership.

d.A corporation is taxed separately from its owners.

37. The right of current stockholders to purchase additional shares in order to maintain the same percentage ownership of new shares is called

a.the voting rights privilege.

b.preemptive right.

c.liquidation.

d.the cumulative preference.

The

Ridgefield

Company manufactures​ trendy, high-quality moderately priced watches. As

Ridgefield​'s

senior financial​ analyst, you are asked to recommend a method of inventory costing. The CFO will use your recommendation to prepare

Ridgefield​'s

2017

income statement. The following data are for the year ended December​ 31,

2017​:

Beginning inventory, January 1, 2017

83,000 units

Ending inventory, December 31, 2017

34,500 units

2017 sales

424,000 units

Selling price (to distributor)

$23.50 per unit

Variable manufacturing cost per unit, including direct materials

$4.80 per unit

Variable operating (marketing) cost per unit sold

$1.30 per unit sold

Fixed manufacturing costs

$1,766,400

Denominator-level machine-hours

6,400

Standard production rate

60 units per machine-hour

Fixed operating (marketing) costs

$1,040,000

Assume standard costs per unit are the same for units in beginning inventory and units produced during the year.​ Also, assume no​ price, spending, or efficiency variances. Any​ production-volume variance is written off to cost of goods sold in the month in which it occurs.

Requirements

1.	Prepare income statements under variable and absorption costing for the year ended December​ 31, 2017.
2.	What is Ridgefield​'s operating income as percentage of revenues under each costing​ method?
3.	Explain the difference in operating income between the two methods.
4.	Which costing method would you recommend to the​ CFO? Why?

Cash	36,000	2,000
Accounts receivable	21,000	39,000
Inventory	5,700	49,000
Supplies	2,500	3,000
	65,200	93,000
Land	1,100,000	800,000
Building	1,150,000	900,000
Accumulated depreciation – building	(276,000)	(180,000)
Vehicles	15,000	28,000
Accumulated depreciation – vehicles	(3,600)	(5,600)
	1,985,400	1,542,400
	$2,050,600	$1,635,400
Accounts payable	38,000	49,000
Dividends payable	25,000	1,300
Current bank loan	55,000	55,000
	118,000	105,300
Non-current bank loan	1,700,600	1,320,100
	1,818,600	1,425,400
Common shares	120,000	100,000
Retained earnings	112,000	110,000
	232,000	210,000
	$2,050,600	$1,635,400

During 2018 the following occurred:

• Land costing $300,000 was purchased in 2018 for $220,000 cash and by issuing common shares of $80,000
• A building that had an original cost of $348,000 and accumulated depreciation of $128,000 was sold for a loss of $53,000
• A vehicle was sold during the year, the vehicle had a cost of $21,000, accumulated depreciation of $3,000 and was sold for $6,800 in cash
• The vehicle that was purchased in 2018 was purchased by obtaining a bank loan
• $137,0000 was paid towards the bank loan in 2018
• The company declared dividends of $32,000 in 2018
• Common shares were bought back by the company during 2018

1. Prepare the statement of cash flows for 2018 using the indirect method.

For each of the three independent situations below determine the amount of the annual lease payments. Each describes a finance lease in which annual lease payments are payable at the beginning of each year. Each lease agreement contains an option that permits the lessee to acquire the leased asset at an option price that is sufficiently lower than the expected fair value that the exercise of the option appears reasonably certain. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

	Situation
	1			2			3
Lease term (years)		5			5			4
Lessor's rate of return		9	%		10	%		8	%
Fair value of leased asset	$	84,000		$	432,000		$	197,000
Lessor's cost of leased asset	$	62,000		$	432,000		$	157,000
Purchase option:
Exercise price	$	22,000		$	62,000		$	34,000
Exercisable at end of year:		5			5			3
Reasonably certain?		yes			no			yes

Determine the annual lease payments for each situation: (Round your intermediate and final answers to the nearest whole dollar amount.)

27. Two major sub-sections appearing in the paid-in capital section of the balance sheet are

Select one:

a. preferred stock and common stock.

b. capital stock and treasury stock.

c. capital stock and additional paid-in capital.

d. paid-in capital and retained earnings.

30. On January 1, Borge Inc. issued $3,000,000, 8% bonds for $2,817,000. The market rate of interest for these bonds is 9%. Interest is payable annually on December 31. Borge uses the effective-interest method of amortizing bond discount. At the end of the first year, Borge should report unamortized bond discount of

Select one:

a. $153,000.

b. $169,470.

c. $163,547.

d. $164,700.

e. $157,647.

31. Each of the following decreases retained earnings except

Select one:

a. All of the provided responses decrease retained earnings.

b. a cash dividend.

c. a stock dividend.

d. a liquidating dividend.

33. Garland Company received proceeds of $188,000 on 10-year, 6% bonds issued on January 1, 2016. The bonds had a face value of $200,000, pay interest semi-annually on June 30 and December 31, and have a call price of 101. Garland uses the straight-line method of amortization.

What is the carrying value of the bonds on January 1, 2018?

Select one:

a. $190,400

b. $197,350

c. $189,200

d. $200,000

e. $188,454

20. Following are balance sheet amounts for Carolina Company as of 12/31/17:

Preferred Stock                                                              $    200,000

Common Stock                                                                     300,000                       

Paid-In Capital in Excess of Par - Preferred                     200,000

Paid-In Capital in Excess of Par - Common                      400,000

Retained Earnings                                                          500,000

Treasury Stock                                                                100,000

Paid In Capital from Treasury Stock                                    50,000

                                                                                                    

Given the above what is total paid in capital?

Select one:

a. $1,150,000

b. $1,100,000

c. $1,000,000

d. $   600,000

e. $   650,000

21. A corporation issued $600,000, 10%, 5-year bonds on January 1, 2017 for $648,666, which reflects an effective-interest rate of 7%. Interest is paid semiannually on January 1 and July 1. If the corporation uses the effective-interest method of amortization of bond premium, the carrying value of the bonds on January 1, 2019 is

Select one:

a. $617,911

b. $629,198.

c. $626,001.

d. $638,932.

e. $633,817.

24. The cumulative effect of the declaration and payment of a cash dividend on a company's financial statements is to

Select one:

a. increase total liabilities and decrease total assets.

b. decrease total liabilities and stockholders' equity.

c. increase total expenses and total liabilities.

d. decrease total assets and stockholders' equity.

e. increase total assets and stockholders' equity.

26. The following selected amounts are available for Vizio Company:

Retained earnings (beginning)                                                                                 $1,600

Net loss                                                                                                                             300

Write off of uncollectible receivable (to allowance for doubtful accounts)             200                                             

Inventory overstatement from prior period (net of tax)                                            500

Cash dividends declared                                                                                                 200

Stock dividends declared                                                                                    200

Based upon the above information, what is Vizio's ending retained earnings balance?

Select one:

a. $   200

b. $1,400

c. $1,200

d. $   400

e. $1,800