Vinson Co. manufactures and sells one product.  Assume the selling price for each item is $200/per unit.  The following information pertains to the company’s first two years of operation:

Variable Costs Per Unit:

Manufacturing:

                  Direct Materials                                                                        $32/unit

                  Direct Labor                                                              $20/unit

                  Variable Manufacturing Overhead               $4/unit

Variable Selling and Administrative                              $3/unit

Fixed Costs:

Fixed Manufacturing Overhead                                       $660,000

Fixed Selling and Administrative                                    $120,000

Additionally, Vinson Company provides you with the following inventory flow information in terms of units for YEAR 1 & YEAR 2:

                                                                                                            YEAR 1                     YEAR 2                     

Beginning Inventory (units)                                               0                                 20,000                    

Units Produced                                                                         100,000                 75,000                    

Units Sold                                                                                     80,000                    90,000                    

Ending Inventory (units)                                                                        20,000                    5,000

-Prepare the Company’s YEAR 1 & 2 Traditional Income Statement---properly label and show all amounts

-Do the Contribution Margin and Traditional Income Statements provide differing Net Income amounts.  If so, what are they and explain in detail using NUMBERS FROM YOUR ANALYSIS ABOVE why they are different.

Devon Bishop, age 45, is single. He lives at 1507 Rose Lane, Albuquerque, NM 87131. His Social Security number is 111-11-1112. Devon does not want $3 to go to the Presidential Election Campaign Fund.

Devon's wife, Ariane, passed away in 2014. Devon's son, Tom, who is age 18, resides with Devon. Tom's Social Security number is 123-45-6788.

Devon owns a sole proprietorship for which he uses the accrual method of accounting and maintains no inventory. His revenues and expenses for 2018 are as follows:

*New office equipment ($21,000); Devon uses the immediate expense election.

** $18,000 for employees and $8,000 for Devon.

Other income received by Devon includes the following:

During the year, Devon and his sole proprietorship had the following property transactions:

1. Sold Blue, Inc. stock for $45,000 on March 12, 2018. He had purchased the stock on September 5, 2015, for $50,000.
2. Received an inheritance of $300,000 from his uncle, Henry. Devon used $200,000 to purchase Green, Inc. stock on May 15, 2018, and invested $100,000 in Gold, Inc. stock on May 30, 2018.
3. Received Orange, Inc. stock worth $9,500 as a gift from his aunt, Jane, on June 17, 2018. Her adjusted basis for the stock was $5,000. No gift taxes were paid on the transfer. Jane had purchased the stock on April 1, 2012. Devon sold the stock on July 1, 2018, for $22,000.
4. On July 15, 2018, Devon sold one-half of the Green, Inc. stock for $40,000.
5. Devon was notified on August 1, 2018, that Yellow, Inc. stock he purchased from a colleague on September 1, 2017, for $52,500 had become worthless. While he perceived that the investment was risky, he did not anticipate that the corporation would declare bankruptcy.
6. On August 15, 2018, Devon received a parcel of land in Phoenix worth $220,000 in exchange for a parcel of land he owned in Tucson. Because the Tucson parcel was worth $245,000, he also received $25,000 cash. Devon's adjusted basis for the Tucson parcel was $210,000. He originally purchased it on September 18, 2015.
7. On December 1, 2018, Devon sold the condominium in which he had been living for the past 20 years (1844 Lighthouse Lane, Albuquerque, NM 87131) and moved into a rented townhouse. The sales price was $480,000, selling expenses were $28,500, and repair expenses related to the sale were $9,400. Devon purchased the condominium for $180,000.

Devon's potential itemized deductions, exclusive of the aforementioned information, are as follows:

During the year, Devon makes estimated Federal income tax payments of $35,000.

Required:

Compute Devon's lowest net tax payable or refund due for 2018 by providing the information requested for Forms 1040, 4562, 8824, and 8949 as well as Schedules A, B, D, SE. Assume that he makes any available elections that will reduce the tax.

Mickley Corporation produces two products, Alpha6s and Zeta7s, which pass through two operations, Sintering and Finishing. Each of the products uses two raw materials—X442 and Y661. The company uses a standard cost system, with the following standards for each product (on a per unit basis):

Information relating to materials purchased and materials used in production during May follows:

The following additional information is available:

1. The company recognizes price variances when materials are purchased.

2. The standard labor rate is $20.00 per hour in Sintering and $18.50 per hour in Finishing.

3. During May, 1,300 direct labor-hours were worked in Sintering at a total labor cost of $29,640, and 2,880 direct labor-hours were worked in Finishing at a total labor cost of $59,040.

4. Production during May was 1,800 Alpha6s and 1,800 Zeta7s.

Required:

1. Complete the standard cost card for each product, showing the standard cost of direct materials and direct labor.

2. Compute the materials price and quantity variances for each material.

3. Compute the labor rate and efficiency variances for each operation.

Brothers Harry and Herman Hausyerday began operations of their machine shop (H & H Tool, Inc.) on January 1, 2016. The annual reporting period ends December 31. The trial balance on January 1, 2018, follows (the amounts are rounded to thousands of dollars to simplify):

1) set up T accounts on the trial balance, prepare an income statement, a statement of retained earnings, and prepare a balance sheet

The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31:

Required:

1. Prepare a traditional income statement for the quarter ended March 31.

2. Prepare a contribution format income statement for the quarter ended March 31.

3. What was the contribution margin per unit?

Post General Jornal Tab, General Ledger Tab, Trial Balance Tab, Income Statement Tab, Statement of Retained Earnings Tab, Balance Sheet Tab.

Required:

The following data pertain to three divisions of Nevada Aggregates, Inc. The company’s required rate of return on invested capital is 12 percent. (Round "Capital turnover" answers to 2 decimal place.)

A company wants to reward key employees and is considering a restricted stock plan. They have asked you for advice on whether there is an advantage to offering restricted stock units instead of a restricted stock award. What happens if you are fired, retire or die prior to the end of the vesting period?

Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs for pricing and other purposes. The proprietor of the company believes that costs are driven primarily by the size of customer lawns, the size of customer garden beds, the distance to travel to customers, and the number of customers. In addition, the costs of maintaining garden beds depends on whether the beds are low maintenance beds (mainly ordinary trees and shrubs) or high maintenance beds (mainly flowers and exotic plants). Accordingly, the company uses the five activity cost pools listed below:

The company already has completed its first stage allocations of costs and has summarized its annual costs and activity as follows:

Required:

Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places.)

Pixel Studio, Inc., is a small company that creates computer-generated animations for films and television. Much of the company’s work consists of short commercials for television, but the company also does realistic computer animations for special effects in movies. The young founders of the company have become increasingly concerned with the economics of the business—particularly since many competitors have sprung up recently in the local area. To help understand the company’s cost structure, an activity-based costing system has been designed. Three major activities are carried out in the company: animation concept, animation production, and contract administration. The animation concept activity is carried out at the contract proposal stage when the company bids on projects. This is an intensive activity that involves individuals from all parts of the company in creating story boards and prototype stills to be shown to the prospective client. Once a project is accepted by the client, the animation goes into production and contract administration begins. Almost all of the work involved in animation production is done by the technical staff, whereas the administrative staff is largely responsible for contract administration. The activity cost pools and their activity measures are listed below: Activity Cost Pool Activity Measure Activity Rate Animation concept Number of proposals $ 5,600 per proposal Animation production Minutes of completed animation $ 7,200 per minute Contract administration Number of contracts $ 6,900 per contract These activity rates include all of the company’s costs, except for its organization-sustaining costs and idle capacity costs. There are no direct labor or direct materials costs. Preliminary analysis using these activity rates has indicated that the local commercial segment of the market may be unprofitable. This segment is highly competitive. Producers of local commercials may ask three or four companies like Pixel Studio to bid, which results in an unusually low ratio of accepted contracts to bids. Furthermore, the animation sequences tend to be much shorter for local commercials than for other work. Since animation work is billed at fairly standard rates according to the running time of the completed animation, this means that the revenues from these short projects tend to be below average. Data concerning activity in the local commercial market appear below: Activity Measure Local Commercials Number of proposals 11 Minutes of completed animation 9 Number of contracts 10 The total sales from the 10 contracts for local commercials was $240,000. Required: 1. Calculate the cost of serving the local commercial market. 2. Calculate the margin earned serving the local commercial market. (Remember, this company has no direct materials or direct labor costs.)

Boswell and Johnson form a partnership on May 1, 2016. Boswell contributes cash of $57,000; Johnson conveys title to the following properties to the partnership:

The partners agree to start their partnership with equal capital balances. No goodwill is to be recognized.

According to the articles of partnership written by the partners, profits and losses are allocated based on the following formula:

• Boswell receives a compensation allowance of $1,500 per month.
• All remaining profits and losses are split 70:30 to Johnson and Boswell, respectively.
• Each partner can make annual cash drawings of $5,000 beginning in 2017.

Net income of $14,500 is earned by the business during 2016.

Walpole is invited to join the partnership on January 1, 2017. Because of her business reputation and financial expertise, she is given a 40 percent interest for $61,000 cash. The bonus approach is used to record this investment, made directly to the business. The articles of partnership are amended to give Walpole a $2,000 compensation allowance per month and an annual cash drawing of $10,000. Remaining profits are now allocated:

All drawings are taken by the partners during 2017. At year-end, the partnership reports an earned net income of $35,000.

On January 1, 2018, Pope (previously a partnership employee) is admitted into the partnership. Each partner transfers 10 percent to Pope, who makes the following payments directly to the partners:

Once again, the articles of partnership must be amended to allow for the entrance of the new partner. This change entitles Pope to a compensation allowance of $1,300 per month and an annual drawing of $4,000. Profits and losses are now assigned as follows:

For the year of 2018, the partnership earned a profit of $58,000, and each partner withdrew the allowed amount of cash.

Determine the capital balances for the individual partners as of the end of each year: 2016 through 2018.

Workpaper Entries and Consolidated Net Income for Two Years, Cost Method LO 6 LO 3 LO 5 On January 1, 2014, Palmero Company purchased an 80% interest in Santos Company for $2,800,000, at which time Santos Company had retained earnings of $1,000,000 and capital stock of $500,000. On the date of acqui- sition, the fair value of the assets and liabilities of Santos Company was equal to their book value, except for prop- erty and equipment (net), which had a fair value of $1,500,000 and a book value of $600,000. The property and equipment had an estimated remaining life of 10 years. Palmero Company reported net income from independent operations of $400,000 in 2014 and $425,000 in 2015. Santos Company reported net income of $300,000 in 2014 and $400,000 in 2015. Neither company declared dividends in 2014 or 2015. Palmero uses the cost method to account for its investment in Santos. Required: A. Prepareingeneraljournalformtheentriesnecessaryintheconsolidatedstatementsworkpapersfortheyears ended December 31, 2014 and 2015. B. Prepare a schedule or t-account showing the calculation of the controlling and non controlling interest in consolidated net income for the years ended December 31, 2014 and December 31, 2015.

Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows:

During November, the following activity was recorded related to the production of Fludex:

1. Materials purchased, 11,000 ounces at a cost of $237,600.

2. There was no beginning inventory of materials; however, at the end of the month, 2,650 ounces of material remained in ending inventory.

3. The company employs 18 lab technicians to work on the production of Fludex. During November, they each worked an average of 190 hours at an average pay rate of $10.50 per hour.

4. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $6,200.

5. During November, the company produced 3,750 units of Fludex.

Required:

1. For direct materials:

a. Compute the price and quantity variances.

b. The materials were purchased from a new supplier who is anxious to enter into a long-term purchase contract. Would you recommend that the company sign the contract?

2. For direct labor:

a. Compute the rate and efficiency variances.

b. In the past, the 18 technicians employed in the production of Fludex consisted of 5 senior technicians and 13 assistants. During November, the company experimented with fewer senior technicians and more assistants in order to reduce labor costs. Would you recommend that the new labor mix be continued?

3. Compute the variable overhead rate and efficiency variances

1.Emily Bradly is part of a team at work that has been charged with the responsibility of researching

differences between IFRS and U.S. GAAP. The team reaches a consensus on a given topic that Emily does not

agree with. Not wanting to enter into a conflict, Emily agrees with the group. What type of bias is

represented in the in the above scenario?

A) availability bias

B) overconfidence bias

C) confirmatory bias

D) groupthink bias

2.Yellow Pencil Company pays Helen, a staff accountant, a $10,000 a month salary. How should the salary

be recognized as an expense?

A) matched with revenue earned by the Yellow Pencil Company

B) systematically allocated with the use of the pencil making machinery of the Yellow Pencil Company

factory

C) upon the sale of pencils and in proportion to those sales

D) recorded as a measure of the effort expended by the staff accountant in the periods in which she works

3.Under U.S. GAAP, revenues are considered ________ when the seller has accomplished what it must do to

be entitled to the revenues.

A) recognized

B) earned

C) realized

D) entitled

4.

he ________ cost is the amount of cash (or equivalent) that a firm paid to acquire an asset, whereas

________ is the amount the firm would pay if the asset were purchased today.

A) historical; current cost

B) present value; current market value

C) historical; current market value

D) realized; present value

I need a correct answer with explanation please，thx！

chois sales director believes the company can sell 2800 units at a selling price of 380 or 5300 units at a price of 330 or 6800 units at a price of 230. if it chose to sell 6800 units, however, it would incur additional advertising costs of $66000 and variable selling costs of $6 per unit.

Data

1-3000 units produced fixed costs 275000 variable cost per unit 74

3001-6000 units produced fixed costs 405000 variable cost per unit 44

6001-10000 units produced fixed costs 815000 variable cost per unit 24

(a) if Choi sells 2800 units, its operating income will be?

(b) if Choi sells 5300 units its operating income will be?

(C) if choi sells 6800 units its operating income will be?

Choi should plan to produce and sell ________ units because this level of production and sales _______________