34. Yummy Jams Company produces a line of jams. Yummy's estimated production of jars of jam for the fourth quarter of the year is as follows:

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Each jar requires half a pound of berries. Yummy prefers to buy the freshest berries, so its policy is to have just 3% of the following month's production needs in ending inventory. On October 1, the company had 1,125 pounds of berries in inventory. Yummy's pays $0.60 per pound of berries. It buys all berries on account and typically pays 40% of a month's purchases in that month, and the remaining 60% the following month. How much cash is paid in November for berry purchases (rounded to the nearest dollar)?

Note: This problem is for the 2018 tax year.

Beth R. Jordan lives at 2322 Skyview Road, Mesa, AZ 85201. She is a tax accountant with Mesa Manufacturing Company, 1203 Western Avenue, Mesa, AZ 85201 (employer identification number 11-1111111). She also writes computer software programs for tax practitioners and has a part-time tax practice. Beth is single and has no dependents. Beth's birthday is July 4, 1972, and her Social Security number is 123-45-6785. She wants to contribute $3 to the Presidential Election Campaign Fund.

The following information is shown on Beth's Wage and Tax Statement (Form W–2) for 2018.

During the year, Beth received interest of $1,300 from Arizona Federal Savings and Loan and $400 from Arizona State Bank. Each financial institution reported the interest income on a Form 1099–INT. She received qualified dividends of $800 from Blue Corporation, $750 from Green Corporation, and $650 from Orange Corporation. Each corporation reported Beth's dividend payments on a Form 1099–DIV.

Beth received a $1,100 income tax refund from the state of Arizona on April 29, 2018. On her 2017 Federal income tax return, she reported total itemized deductions of $8,200, which included $2,200 of state income tax withheld by her employer.

Fees earned from her part-time tax practice in 2018 totaled $3,800. She paid $600 to have the tax returns processed by a computerized tax return service.

On February 8, 2018, Beth bought 500 shares of Gray Corporation common stock for $17.60 a share. On September 12, 2018, Beth sold the stock for $14 a share.

Beth bought a used sport utility vehicle for $6,000 on June 5, 2018. She purchased the vehicle from her brother-in-law, who was unemployed and was in need of cash. On November 2, 2018, she sold the vehicle to a friend for $6,500.

On January 2, 2018, Beth acquired 100 shares of Blue Corporation common stock for $30 a share. She sold the stock on December 19, 2018, for $55 a share. Both stock transactions were reported to Beth on Form 1099–B; basis was not reported to the IRS.

During the year, Beth records revenues of $16,000 from the sale of a software program she developed. Beth incurred the following expenses in connection with her software development business.

Beth elected to expense the maximum portion of the cost of the computer, printer, and furniture allowed under the provisions of § 179. These items were placed in service on January 15, 2018, and used 100% in her business.

Although her employer suggested that Beth attend a convention on current developments in corporate taxation, Beth was not reimbursed for the travel expenses of $1,420 she incurred in attending the convention. The $1,420 included $200 for the cost of meals.

During the year, Beth paid $300 for prescription medicines and $2,875 for doctor interest to credit card bills and hospital bills. Medical insurance premiums were paid for her by her employer. Beth paid real property taxes of $1,766 on her home. Interest on her home mortgage (Valley National Bank) was $3,845, and interest to credit card companies was $320. Beth contributed $2,080 to various qualifying charities during the year. Professional dues and subscriptions totaled $350.

Beth paid estimated taxes of $1,000.

Required:

Compute the net tax payable or refund due for Beth R. Jordan for 2018. You will need Form 1040, (and its Schedules 1, 4, 5, B, C, D, and SE) and Forms 4562 and 8949 and the Qualified Dividends and Capital Gain Tax Worksheet.

• Make realistic assumptions about any missing data.
• If an amount box does not require an entry or the answer is zero, enter "0".
• Enter all amounts as positive numbers, unless instructed otherwise.
• It may be necessary to complete the tax schedules before completing Form 1040.
• When computing the tax liability, do not round your immediate calculations. If required round your final answers to the nearest dollar.
• Use the 2018 Tax Rate Schedule provided. Do not use the Tax Table

Sheridan Company began using dollar-value LIFO for costing its inventory two years ago. The ending inventory for the past two years in end-of-year dollars was $292000 and $459000 and the year-end price indices were 1.0 and 1.1, respectively. Assuming the current inventory at end of year prices equals $647000 and the index for the current year is 1.15, what is the ending inventory using dollar-value LIFO? (Round intermediate calculations and final answer to 0 decimal places, e.g. 10,000.)

$600686.

$596936.

$563186.

$589886.

Please show work

Pratt Company acquired all of Spider, Inc.’s outstanding shares on December 31, 2018, for $515,300 cash. Pratt will operate Spider as a wholly owned subsidiary with a separate legal and accounting identity. Although many of Spider’s book values approximate fair values, several of its accounts have fair values that differ from book values. In addition, Spider has internally developed assets that remain unrecorded on its books. In deriving the acquisition price, Pratt assessed Spider’s fair and book value differences as follows:

At December 31, 2018, the following financial information is available for consolidation:

Prepare a consolidated balance sheet for Pratt and Spider as of December 31, 2018.

2.

4.

Required information

[The following information applies to the questions displayed below.]
   

P company purchased a 70% interest in S company on January 1, 2015 for $3,000,000. The book value and fair value of the assets and liabilities of S company on that day were:

                                                BOOK VALUE                     FAIR VALUE

Current assets                   $700,000                              700,000

Equipment                         1,600,000                             2,000,000

Land                                      500,000                                 700,000

Deferred charge               400,000                                 400,000

Total Assets                       3,200,000                             3,800,000

Less: Liabilities                 (700,000)                             (700,000)

Net Assets:                         2,500,000                             3,100,000

The equipment had a remaining useful life of 8 years on January 1, 2015 and the deferred charge was being amortized over a period of 8 years from that date. C/S was $1,700,000 and Retained Earnings was $110,000 on that same date. P company uses partial-equity method to record its investment within S company.

Create the December 31, 2015 WORK PAPER ENTRIES that:

1. Eliminate the investment account
2. Allocate and amortize the difference between implied value and book value

Understand only one can be answered but I give a thumbs up for giving the extra effort.

Control of organization is achieved by evaluating the performance of:

A. man agers only:

B. Operations only:

C. managers and operations:

D. None of the above

Performance reports facilitate the use of:

A. incremental analysis

B. Man agreement by exception

C. Budgeting

D. Non-monetary data

An example of non-monetary information is the:

A. cost of materials

B. fixed costs for a period of time

C. number of product defects

D. value of the benefit forgone from selecting one alternative over another.

Which of the following is not a characteristic of managerial accounting?

A. it must comply with GAAP.

B. It Stresses future transactions

C. it emphasizes detailed information

D. It is aimed primarily at internal users.

The wages lost when you give up your job to attend school full-time is an example of

A. fixed costs

B. opportunity cost

C. Direct cost

D. Sunk cost

The cost of a machine purchased last year is an example of

A. opportunity cost

B. Variable Cost

C. Fixed Cost

D. Sunk Cost

Assume a company incurs $100,000 for total variable costs and $150,000 for total fixed costs to produce 10,000 units. What would the total cost be to produce 12,000 units?

A. $27,000

B $30,000

C. $250,000

D. $280,000

Company code of ethics aren't always a good guide to ethical behavior because.

A. they often specify what should be done.

B. they often specify what cant be done

C. they focus more on what's right than legal

D. They focus more on cost than on profit.

The top managerial accounting position is held by the:

A. CFO

B. Treasurer

C. controller

D auditor

Paul Swanson has an opportunity to acquire a franchise from The Yogurt Place, Inc., to dispense frozen yogurt products under The Yogurt Place name. Mr. Swanson has assembled the following information relating to the franchise:

1. A suitable location in a large shopping mall can be rented for $5,100 per month.
2. Remodeling and necessary equipment would cost $414,000. The equipment would have a 15-year life and a $27,600 salvage value. Straight-line depreciation would be used, and the salvage value would be considered in computing depreciation.
3. Based on similar outlets elsewhere, Mr. Swanson estimates that sales would total $540,000 per year. Ingredients would cost 20% of sales.
4. Operating costs would include $94,000 per year for salaries, $5,900 per year for insurance, and $51,000 per year for utilities. In addition, Mr. Swanson would have to pay a commission to The Yogurt Place, Inc., of 16.0% of sales.

Required:

1. Prepare a contribution format income statement that shows the expected net operating income each year from the franchise outlet.

2-a. Compute the simple rate of return promised by the outlet.

2-b. If Mr. Swanson requires a simple rate of return of at least 19%, should he acquire the franchise?

3-a. Compute the payback period on the outlet.

3-b. If Mr. Swanson wants a payback of two years or less, will he acquire the franchise?

1. Statement of Cost of Goods Manufactured for a Manufacturing Company

   A payment of cash (or a commitment to pay cash in the future) for the purpose of generating revenues.Cost data for Sandusky Manufacturing Company for the month ended January 31 are as follows:

   Inventories	January 1		January 31
   Materials	$224,750		$193,290
   Work in process	148,340		127,570
   Finished goods	114,620		131,440

   Direct labor		$404,550
   Materials purchased during January		431,520
   Factory overhead incurred during January:
   	Indirect labor	43,150
   	Machinery depreciation	26,070
   	Heat, light, and power	8,990
   	Supplies	7,190
   	Property taxes	6,290
   	Miscellaneous costs	11,690

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

   Sandusky Manufacturing Company
   Statement of Cost of Goods Manufactured
   For the Month Ended January 31
   Indirect labor Machinery depreciation Supplies Work in process inventory, January 1			$
   Direct materials:
   Machinery depreciation Materials inventory, January 1 Supplies Work in process inventory, January 31	$
   Indirect labor Property taxes Purchases Work in process inventory, January 31
   Cost of materials available for use Less work in process inventory, January 31 Supplies Work in process inventory, January 1	$
   Indirect labor Materials inventory, January 31 Miscellaneous cost Work in process inventory, January 31
   Cost of direct materials used in production Less work in process inventory, January 31 Materials inventory, January 1 Total manufacturing costs		$
   Direct labor Indirect labor Machinery depreciation Supplies
   Factory overhead:
   Indirect labor Materials inventory, January 1 Materials inventory, January 31 Purchases	$
   Direct labor Machinery depreciation Purchases Work in process inventory, January 31
   Direct labor Heat, light, and power Materials inventory, January 1 Work in process inventory, January 31
   Direct labor Materials inventory, January 1 Purchases Supplies
   Materials inventory, January 31 Property taxes Purchases Work in process inventory, January 31
   Direct materials Miscellaneous costs Purchases Work in process inventory, January 31
   Total factory overhead
   Total manufacturing costs incurred during January
   Total manufacturing costs			$
   Cost of materials available for use Direct materials Materials inventory, January 31 Work in process inventory, January 31
   Cost of goods manufactured			$

   Feedback

   b. Determine the The cost of finished goods available for sale minus the ending finished goods inventory.cost of goods sold for January.
   $

Alpha purchased inventory on credit with terms FOB shipping Point (periodic Inventory system). The inventory was shipped to Alpha but not received. Alpha recorded the purchase and included it in ending.

What is the JE?

Are assets, liabilities or net income; understated, overstated, or neither? Why?

Target Costing

Laser Impressions, Inc., manufactures color laser printers. Model J20 presently sells for $575 and has a total product cost of $460, as follows:

It is estimated that the competitive selling price for color laser printers of this type will drop to $550 next year. Laser Impressions has established a target cost to maintain its historical markup percentage on product cost. Engineers have provided the following cost reduction ideas:

1. Purchase a plastic printer cover with snap-on assembly, rather than with screws. This will reduce the amount of direct labor by 9 minutes per unit.
2. Add an inspection step that will add six minutes per unit of direct labor but reduce the materials cost by $12 per unit.
3. Decrease the cycle time of the injection molding machine from four minutes to three minutes per part. Thirty percent of the direct labor and 45% of the factory overhead are related to running injection molding machines.

The direct labor rate is $38 per hour.

a. Determine the target cost for Model J20 assuming that the historical markup on product cost and selling price is maintained. Round your final answer to two decimal places.
$

b. Determine the required cost reduction. Enter as a positive number. Round your final answer to two decimal places.
$

c. Evaluate the three engineering improvements together to determine if the required cost reduction (drift) can be achieved. Enter all amounts as positive numbers. Do not round interim calculations but round your final answers to two decimal places.

I understand only one question can be answered, but I will guarantee a thumbs up if you give the extra effort. I answered the first one.

The two is following this data, I believe variable cost is 1.10

Month                                    Cost                           Hours

January                               $4400                             3500

Feb                                     $8000                              7000

March                                 11000                              9500

the variable cost per unit is

A. $0.80

B. $1.07

C. $1.10

D. $2.00

The fixed cost element is:

A. $ 5.50

B. $6.55

C. $7150

D. $5600

If variable costs are 60% of sales and fixed costs are $612,000, the break even point in dollars is:

A. $367,200

B. $1,530,000

C. $244, 800

D. $1,020,000

8. Assume a company fixed costs are $25,200. Its unit sales price is $17,50, and its unit cost is $10.50. The break -even point is units is:

A. 3,600

B. 1,440

C. 3,360

D 2,400

Assume Beale Co. expects to sell 150 units next month. The unit sales price is $80, unit variable cost is $30, and the fixed costs per month are $5,000. The margin of safety is:

A.$12,000

B. $5,000

C. $4,000

D. $2,500

Quad mix co. sells the three products shown below. determine which product should be produced if there are only 1,000 machine hours available next month:

                                                      W         X       Y         z

Unit sales price                            $14       $16    $12     $8

Unit Variable cost                          9            8        6        2

Machine hours per unit                 2            4         3       2

A. W

B. X

C. Y

D. Z

The statement of cash flows is typically used to determine if a company can:

A. generate enough cash to acquire another company

B. Generate enough cash to pay cash dividends to stockholders

C. Generate enough Cash to pay an increase in employees wages

D. Generate enough cash to buy equipment

1. A potential investor in your airline wants to know how his investment would compare with the share market as a whole. To do this, what ratio would he use? a) Dividend cover b) Dividend per share on historical basis c) Price earnings ratio d) Asset test e) None of the above

2.Return on equity should be above whic of these? a) Variable mortgage rates b) Fixed Mortgage rates c) Bank interest on long term deposits d) Bank interest on short term deposits e) None of the above

3.What is operating revenue in terms of aviation business? a) All except interline sales b) Revenue from frequent flyer sales c) Sub-leasing terminal space d) Interline sales e) Duty free sales f) All of the above g) Revenue from passenger services

4.In financial terms a Discounted cash flow valuation is mainly concerned with: a) Both selling cheaply and capital budgeting b) Capital budgeting c) Revenue from fare discounting d) Selling cheaply

5.Shares in a company entitle the owners of the shares to a proportional share of the profits, which is paid as a dividend. The level of the dividend is determined by the directors, who may elect to pay some or all of the profits. In general, what should they pay as dividends? a) They should defer dividends until realising two consecutive profit announcements b) The percentage depends on the number of directors c) At least some of the profits- but they can retain profits against future risk d) All of the profits. Thats what shareholders demand e) None of the profits. They are perfectly entitled to retain all profits for the future

Topper company reported the following pre-tax financial income (loss for the years 2013-2017)

2013      70,000               30%       21,000

2014      45,000               30%       13,500

2015      -260,000             30%       0

2016      90                        35%       0

2017      215,000              35%       15,750

Topper company reported the following pre-tax financial income (loss for the years 2013-2017) 2013 70,000 2014 45,000 2015 -260,000 2016 90 2017 215,000 Pretax financial income (loss) and taxable income (loss) were the same for all years involved. The enacted tax rate was 30% for 2013 through 2015, and 35% for 2016 and thereafter. Assume the carryback provision is used first for net operating losses. Instructions: A. Prepare the journal entries for the years 2013 through 2017 to record income tax expense, income tax payable (refundable), and the tax effects of the loss carryback and loss carryforward, assuming that based on the weight of available evidence, it is more likely than not that 60 percent of the benefits of the loss carryforward will not be realized. B. Prepare the income tax section of the 2015 income statement beginning with the line “income (loss) before income taxes”.