Questions
The production supervisor of the Machining Department for Niland Company agreed to the following monthly static...

The production supervisor of the Machining Department for Niland Company agreed to the following monthly static budget for the upcoming year:

Niland Company
Machining Department
Monthly Production Budget
Wages $1,535,000
Utilities 63,000
Depreciation 105,000
Total $1,703,000

The actual amount spent and the actual units produced in the first three months in the Machining Department were as follows:

Amount Spent Units Produced
January $1,602,000 128,000
February 1,531,000 117,000
March 1,451,000 105,000

The Machining Department supervisor has been very pleased with this performance because actual expenditures for January–March have been significantly less than the monthly static budget of 1,703,000. However, the plant manager believes that the budget should not remain fixed for every month but should “flex” or adjust to the volume of work that is produced in the Machining Department. Additional budget information for the Machining Department is as follows:

Wages per hour $22
Utility cost per direct labor hour $0.9
Direct labor hours per unit 0.5
Planned monthly unit production 140,000

a. Prepare a flexible budget for the actual units produced for January, February, and March in the Machining Department. Assume depreciation is a fixed cost. If required, use per unit amounts carried out to two decimal places.

Niland Company
Machining Department Budget
For the Three Months Ending March 31
January February March
Units of production 128,000 117,000 105,000
$ $ $
Total $ $ $
Supporting calculations:
Units of production 128,000 117,000 105,000
Hours per unit x x x
Total hours of production
Wages per hour x $ x $ x $
Total wages $ $ $
Total hours of production
Utility costs per hour x $ x $ x $
Total utilities $ $ $

b. Compare the flexible budget with the actual expenditures for the first three months.

January February March
Total flexible budget $ $ $
Actual cost
Excess of actual cost over budget $ $ $

What does this comparison suggest?

The Machining Department has performed better than originally thought.
The department is spending more than would be expected.

In: Accounting

Write a paragraph to your boss explaining how the issue price of the bons (the next...

Write a paragraph to your boss explaining how the issue price of the bons (the next amount borrowed) is affected by the state interest rate on the bonds. Include an explanation of how interest costs consist of morel than just periodic interest payments.

In: Accounting

In the current economic environment, there has been a lot of discussion related to the excessiveness...

In the current economic environment, there has been a lot of discussion related to the excessiveness of executive pay. Agree or disagree as to whether you believe it is excessive and explain your position. What other alternatives may be there be to executive pay?

In: Accounting

Delaware Chemical Company uses oil to produce two types of plastic products, P1 and P2. Delaware...

Delaware Chemical Company uses oil to produce two types of plastic products, P1 and P2. Delaware budgeted 26,600 barrels of oil for purchase in June for $66 per barrel. Direct labor budgeted in the chemical process was $228,200 for June. Factory overhead was budgeted at $316,000 during June. The inventories on June 1 were estimated to be:

Oil $16,000
P1 10,700
P2 9,100
Work in process 13,200

The desired inventories on June 30 were:

Oil $17,600
P1 9,800
P2 8,700
Work in process 13,700

Use the preceding information to prepare a cost of goods sold budget for June. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Delaware Chemical Company
Cost of Goods Sold Budget
For the Month Ending June 30
$
$
Direct materials:
$
$
$
$
$
$
$

In: Accounting

You are required to prepare a written research assignment that addresses one of the provided topics...

You are required to prepare a written research assignment that addresses one of the provided topics
below. The purpose of the task is for you to demonstrate high-level critical reflection and analytical
reasoning skills in the context of the application of Australian taxation law and taxation law policy. You
must undertake academic research which demonstrates the following:
1. An in-depth your understanding of how the specific tax law applies,
2. The policy context of the law and if relevant how other jurisdictions deal with similar issues,
3. Critical reflection as to whether the law achieves its stated purpose aligns with principles of
good tax policy or could be improved/amended. These critical reflections should be
supported by the research you have undertaken as well as your own independent thought.

TOPIC:

Division 7A (treatment of private company loans) - discuss and critically evaluate Division 7A
as a specific anti-avoidance provision. You should include a discussion of the overall policy
objectives and your evaluation of whether the Division currently meets these objectives or
whether further amendments are necessary.

In: Accounting

The financial statements of Lowz Company appear below: LOWZ COMPANY Comparative Balance Sheet December 31 2020...

The financial statements of Lowz Company appear below:

LOWZ COMPANY
Comparative Balance Sheet
December 31
2020 2019
Assets
Cash $36,000 $23,000
Accounts receivable 25,000 34,000
Merchandise Inventory 32,000 15,000
Property, plant, and equipment 50,000 78,000
Accumulated depreciation (21,000 ) (24,000 )
    Total $122,000 $126,000
Liabilities and Stockholder's Equity
Accounts payable $18,000 $23,000
Income taxes payable 9,000 8,000
Bonds payable 8,000 33,000
Common stock 28,000 24,000
Retained earnings 59,000 38,000
    Total $122,000 $126,000
LOWZ COMPANY
Income Statement
For the Year Ended December 31, 2020
Sales $400,000
Cost of goods sold 270,000
Gross profit 130,000
Operating expenses 45,000
Income from operations 85,000
Interest expense 5,000
Income before income taxes 80,000
Income tax expense 24,000
Net income $56,000
The following additional data were provided:
1. Dividends declared and paid were $35,000.
2. During the year, equipment was sold for $17,000 cash. This equipment cost $28,000 originally and had a book value of $17,000 at the time of sale.
3. All depreciation expense is in the operating expenses.
4. All sales and purchases are on account.
5. Accounts payable pertain to merchandise suppliers.
6. All operating expenses except for depreciation were paid in cash.


Prepare a statement of cash flows for Lowz Company using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

In: Accounting

Diego Company manufactures one product that is sold for $73 per unit in two geographic regions—the...

Diego Company manufactures one product that is sold for $73 per unit in two geographic regions—the East and West regions. The following information pertains to the company’s first year of operations in which it produced 44,000 units and sold 39,000 units.

Variable costs per unit:
Manufacturing:
Direct materials $ 23
Direct labor $ 16
Variable manufacturing overhead $ 2
Variable selling and administrative $ 4
Fixed costs per year:
Fixed manufacturing overhead $ 748,000
Fixed selling and administrative expenses $ 400,000

The company sold 29,000 units in the East region and 10,000 units in the West region. It determined that $180,000 of its fixed selling and administrative expenses is traceable to the West region, $130,000 is traceable to the East region, and the remaining $90,000 is a common fixed cost. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product.   

5. What is the company’s total gross margin under absorption costing?

6. What is the company’s net operating income (loss) under absorption costing?

7. What is the amount of the difference between the variable costing and absorption costing net operating incomes (losses)?  

8a. What is the company’s break-even point in unit sales?

8b. Is it above or below the actual sales volume?

Above

Below

9.If the sales volumes in the East and West regions had been reversed, what would be the company’s overall break-even point in unit sales?

10. What would have been the company’s variable costing net operating income (loss) if it had produced and sold 39,000 units?   

In: Accounting

(THERE IS NO ADDITIONAL INFORMATION PROVIDED OR NEEDED, SIMPLY NEED THIS CREATED IN EXCEL) Credit Card...

(THERE IS NO ADDITIONAL INFORMATION PROVIDED OR NEEDED, SIMPLY NEED THIS CREATED IN EXCEL)

Credit Card Amortization Schedule (MUST BE IN EXCEL)

Starter File Name: None

Difficulty: Level 3

Credit cards can offer people considerable flexibility when it comes to purchasing power. However, this flexibility usually comes at a cost through a high APR on any unpaid balances. If only the minimum payment is made on a credit card balance, this debt could be carried for many years and cost thousands of dollars in interest expense. The purpose of this exercise is to design an amortization schedule for a credit card where only the minimum payment is made. Assume the bank charges an APR of 16% and that the current balance on the credit card is $5,000. The minimum payment is established on a fourteen year repayment period and payments are made at the end of each month. The design of your amortization table must include the following:

  1. Design is limited to one worksheet.

  2. Assume credit card statements are issued on the first day of each month. Show the statement date for each payment and the statement month on the amortization schedule. The date for the first statement is 9/1/2020.

  3. For each payment, show the total payment, how much of the payment is interest expense, and how much is used to reduce the balance of the credit card. The schedule should also show the credit card balance at the beginning of every month.

  4. Once the amortization table is complete, use the data to create a PivotTable on a second worksheet. The PivotTable should show how much total interest is paid each year and the total interest paid on the $5,000 balance after fourteen years. Also show the total amount of principal paid each year. The row heading should be the year sorted in chronological order beginning with 2020. Finally, show the number of payments made each year. Since the first statement is 9/1/2020, the year 2020 will have four payments.

  5. Use column and/or row headings, add titles to your worksheets, and rename the worksheet tabs with appropriate labels. Also, use appropriate number formats on both the amortization worksheet and the PivotTable.

In: Accounting

Hickory Company manufactures two products—14,000 units of Product Y and 6,000 units of Product Z. The...

Hickory Company manufactures two products—14,000 units of Product Y and 6,000 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 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: Activity Cost Pool Activity Measure Estimated Overhead Cost Expected Activity Machining Machine-hours $ 198,000 10,000 MHs Machine setups Number of setups $ 86,400 180 setups Production design Number of products $ 82,000 2 products General factory Direct labor-hours $ 248,000 12,000 DLHs Activity Measure Product Y Product Z Machine-hours 6,800 3,200 Number of setups 50 130 Number of products 1 1 Direct labor-hours 7,800 4,200

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. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? (Do not round intermediate calculations and round your final answer to the nearest dollar amount.)

8. Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z? (Do not round intermediate calculations and round your final answer to the nearest dollar amount.)

In: Accounting

You are the owner of a lawn service company (LawnCo) which provides grounds and maintenance services...

You are the owner of a lawn service company (LawnCo) which provides grounds and maintenance services to a range of corporate customers. Customers are expected to pay on the first of each month, in advance of receiving services. One of your corporate customers is an eldercare facility whose grounds you have maintained for many years. The customer has not paid for the last three months of services (from Oct.–Dec. 2020); nevertheless, to maintain a positive relationship, your company continued to provide mowing and weed control services to the eldercare facility during that time. Your company ceased providing services in January 2021 and found out in that same month that the eldercare facility filed for bankruptcy in September. Your company now believes that collection of the missed payments is extremely unlikely.  Your company has already issued financial statements to lenders (for the period ending 12/31/20) which reflected revenue and a corresponding account receivable related to this customer of $10,000 per month for services provided to this customer. Those financial statements also reflected the company’s standard allowance (reserve) amount on receivables, of 4% of sales. In total, your company’s average monthly sales amount to $500,000.

Required:

Your paper should be structured in the format of an issues memo.

1. Evaluate whether receipt of this information indicates you have a change in accounting estimate or whether the customer’s bankruptcy should result in this event being considered an error in previously issued financial statements.

2. Next, describe the accounting treatment (as required by the Codification) for each alternative, then support your explanations with draft journal entries.

3. Finally, briefly state which treatment appears to be more appropriate given the circumstances. If you must make any assumptions in reaching this conclusion, state these.

In: Accounting

2. Genoa Pasta manufactures Italian food products and currently earns $80 million in earnings before interest...

2. Genoa Pasta manufactures Italian food products and currently earns $80 million in earnings before interest and taxes. You expect the firm's earnings to grow 20 percent a year for the next six years and 5% thereafter. The firm's current after- tax return on capital is 28%, but you expect it to be halved after the sixth year. If the cost of capital for the firm is expected to be 10% in perpetuity, estimate the terminal value for the firm. (The tax rate for the firm is 40%.)

In: Accounting

An inexperienced accountant prepared this condensed income statement for Cullumber Company, a retail firm that has...

An inexperienced accountant prepared this condensed income statement for Cullumber Company, a retail firm that has been in business for a number of years.

CULLUMBER COMPANY
Income Statement
For the Year Ended December 31, 2017
Revenues
  Net sales $901,000
  Other revenues 23,320
924,320
Cost of goods sold 588,300
Gross profit 336,020
Operating expenses
  Selling expenses 115,540
  Administrative expenses 109,180
224,720
Net earnings $111,300


As an experienced, knowledgeable accountant, you review the statement and determine the following facts.

1. Net sales consist of sales $965,660, less freight-out on merchandise sold $34,980, and sales returns and allowances $29,680.
2. Other revenues consist of sales discounts $19,080 and rent revenue $4,240.
3. Selling expenses consist of salespersons’ salaries $84,800; depreciation on equipment $10,600; advertising $13,780; and sales commissions $6,360. The commissions represent commissions paid. At December 31, $3,180 of commissions have been earned by salespersons but have not been paid. All compensation should be recorded as Salaries and Wages Expense.
4. Administrative expenses consist of office salaries $49,820; dividends $19,080; utilities $12,720; interest expense $2,120; and rent expense $25,440, which includes prepayments totaling $6,360 for the first quarter of 2018.


Prepare a correct detailed multiple-step income statement. Assume a 25% tax rate. (List other revenues before other expenses. Round answers to 0 decimal places, e.g. 5,125.)

In: Accounting

Product Decisions Under Bottlenecked Operations Youngstown Glass Company manufactures three types of safety plate glass: large,...

  1. Product Decisions Under Bottlenecked Operations

    Youngstown Glass Company manufactures three types of safety plate glass: large, medium, and small. All three products have high demand. Thus, Youngstown Glass is able to sell all the safety glass that it can make. The production process includes an autoclave operation, which is a pressurized heat treatment. The autoclave is a A condition that occurs when product demand exceeds production capacity.production bottleneck. Total fixed costs are $200,000 for the company as a whole. In addition, the following information is available about the three products:

       Large    Medium    Small
    Unit selling price $94 $281 $232
    Unit variable cost 74 230 204
    Unit contribution margin $ 20 $ 51 $ 28
    Autoclave hours per unit 2 6 4
    Total process hours per unit 6 12 8
    Budgeted units of production 4,500 4,500 4,500

    a. Determine the contribution margin by glass type and the total company income from operations for the budgeted units of production.

    Large      Medium      Small      Total     
    Units produced
    Revenues $ $ $ $
    Variable costs
    Contribution margin $ $ $ $
    Fixed costs
    Income from operations $

    b. Prepare an analysis showing which product is the most profitable per bottleneck hour. Round the "Unit contribution margin per production bottleneck hour" amounts to the nearest cent.

    Large     Medium     Small    
    Contribution margin $ $ $
    Autoclave hours per unit
    Unit contribution margin per production bottleneck hour $ $ $

    Feedback

Loading item

There was an error loading this item. If this continues to occur, please contact Technical Support.

Check My Work5 more Check My Work uses remaining.

  • Previous
  • Next
  • 100% Correct
  • Partially Correct
  • Incorrect
  • Needs Instructor Grading

Basic Calculatorclose

0

UseEntBSBSpCEHomCEnd

789+

456-

123*

0.=/

In: Accounting

Described below are three independent and unrelated situations involving accounting changes. Each change occurs during 2018...

Described below are three independent and unrelated situations involving accounting changes. Each change occurs during 2018 before any adjusting entries or closing entries are prepared.

  1. On December 30, 2014, Rival Industries acquired its office building at a cost of $9,600,000. It has been depreciated on a straight-line basis assuming a useful life of 30 years and no residual value. Early in 2018, the estimate of useful life was revised to 18 years in total with no change in residual value.
  2. At the beginning of 2014, the Hoffman Group purchased office equipment at a cost of $576,000. Its useful life was estimated to be 8 years with no residual value. The equipment has been depreciated by the sum-of-the-years’-digits method. On January 1, 2018, the company changed to the straight-line method.
  3. At the beginning of 2018, Jantzen Specialties, which uses the sum-of-the-years’-digits method, changed to the straight-line method for newly acquired buildings and equipment. The change increased current year net income by $565,000.


Required:

1. Identify the type of change.
2. Prepare any journal entry necessary as a direct result of the change as well as any adjusting entry for 2018 related to the situation described. (Ignore income tax effects.)

In: Accounting

Smithson Company uses a job-order costing system and has two manufacturing departments—Molding and Fabrication. The company...

Smithson Company uses a job-order costing system and has two manufacturing departments—Molding and Fabrication. The company provided the following estimates at the beginning of the year:

Molding Fabrication Total
Machine-hours 23,000 33,000 56,000
Fixed manufacturing overhead costs $ 730,000 $ 220,000 $ 950,000
Variable manufacturing overhead per machine-hour $ 5.00 $ 5.00

  

During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs—Job D-75 and Job C-100. It provided the following information related to those two jobs:

Job D-75: Molding Fabrication Total
Direct materials cost $ 377,000 $ 329,000 $ 706,000
Direct labor cost $ 210,000 $ 170,000 $ 380,000
Machine-hours 18,000 5,000 23,000

  

Job C-100: Molding Fabrication Total
Direct materials cost $ 280,000 $ 290,000 $ 570,000
Direct labor cost $ 100,000 $ 220,000 $ 320,000
Machine-hours 5,000 28,000 33,000

  

  
Smithson had no overapplied or underapplied manufacturing overhead during the year.

Assume Smithson uses departmental overhead rates based on machine-hours.

2-a. Compute the predetermined departmental overhead rates. (Round your answer to 2 decimal places.)

         

2-b. Compute the total manufacturing costs assigned to Job D-75 and Job C-100. (Round your intermediate calculations to 2 decimal places.)

          

2-c. If Smithson establishes bid prices that are 120% of total manufacturing costs, what bid price would it have established for Job D-75 and Job C-100? (Round your intermediate calculations to 2 decimal places.)

          

2-d. What is Smithson’s cost of goods sold for the year? (Round your intermediate calculations to 2 decimal places.)

       

In: Accounting