Sequoia Paper Products, Inc., manufactures boxed stationery for sale to specialty shops. Currently, the company is operating at 85 percent of capacity. A chain of drugstores has offered to buy 31,000 boxes of Sequoia’s blue-bordered thank-you notes as long as the box can be customized with the drugstore chain’s logo. While the normal selling price is $6.90 per box, the chain has offered just $2.90 per box. Sequoia can accommodate the special order without affecting current sales. Unit cost information for a box of thank-you notes follows:

Fixed overhead is $405,000 per year and will not be affected by the special order. Normally, there is a commission of 9 percent of price; this will not be paid on the special order since the drugstore chain is dealing directly with the company. The special order will require additional fixed costs of $15,700 for the design and setup of the machinery to stamp the drugstore chain’s logo on each box.

Required:

1. Which alternative is more cost effective and by how much?

The operating income would increase by $fill in the blank 2.

2. What if Sequoia Paper Products was operating at capacity and accepting the special order would require rejecting an equivalent number of boxes sold to existing customers? Which alternative would be better?  

Cherokee Inc. is a merchandiser that provided the following information:

Required:

1. Prepare a traditional income statement.

2. Prepare a contribution format income statement.

During Heaton Company’s first two years of operations, it reported absorption costing net operating income as follows:

* $3 per unit variable; $247,000 fixed each year.

The company’s $40 unit product cost is computed as follows:

Forty percent of fixed manufacturing overhead consists of wages and salaries; the remainder consists of depreciation charges on production equipment and buildings.

Production and cost data for the first two years of operatons are:

Required:

1. Using variable costing, what is the unit product cost for both years?

2. What is the variable costing net operating income in Year 1 and in Year 2?

3. Reconcile the absorption costing and the variable costing net operating income figures for each year.

Highland Company produces a lightweight backpack that is popular with college students. Standard variable costs relating to a single backpack are given below:

Overhead is applied to production on the basis of direct labor-hours. During March, 570 backpacks were manufactured and sold. Selected information relating to the month’s production is given below:

*For the month's production.

The following additional information is available for March’s production:

Required:

Hint: It may be helpful to complete a general model diagram for direct materials, direct labor, and variable manufacturing overhead before attempting to answer any of the requirements.

5. What is the standard direct labor rate per hour?

6. What was the labor rate variance for March? The labor efficiency variance?

7. What was the variable overhead rate variance for March? The variable overhead efficiency variance?

8. Prepare a standard cost card for one backpack.

Lindon company is the exclusive distributor for an automotive product that sells for $38 per unit and has a cm ratio of 30%. the company's fixed expenses are $180,000 per year. the company plans to sell 16,000 units this year.

required:

1. what are the variable expenses per unit?

2. using the equation method;

a. what is the break-even point in unit sales and in dollar sales?

b. what sales level in unit and dollar is required to earn an annual profit of $50,000?

4. assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $3 per unit. what is the company's new break-even point in unit sales and in dollar sales?

Taylored T’s is a sole proprietorship owned and operated by Taylor Breckitt. TT’s takes plain t-shirts and prints or sews logos and designs for customers. Taylor is required to file financial statements with his bank each month in order to keep their credit line open. TT’s reported the following results for March:

The bank is especially concerned about the Working Capital ratio, so they want to be sure that TT is reporting their assets fairly.

What was TT’s Ending Work in Process Inventory for the period?

Select one or more:

a. $38,880

b. $154,850

c. $94,205

d. $75,650

On January 1, 2021, Sikie Shoe Manufacturing Corporation had 60,000 shares of $5 par value common stock issued and outstanding and 10,000 6% $50 cumulative preferred stock issued and outstanding. During the year, the following transactions occurred:

3/1/2021 Declared a 20% stock dividend on outstanding common stock to stock holders of record March 15. The market price per share as of March 1 is $18

4/1/2021 The 20% stock dividend declared on March 1 was issued to the common stockholders.   

4/10/2021 Declared cash dividend to preferred stockholders of record on April 20

4/30/2021 Paid preferred stockholders' dividend declared on April 10.

5/10/2021 Declared a 35% stock dividend on outstanding common stock to stockholders of record May 20. The market price per share as of May 10 is $25

5/30/2021 The 35% stock dividend declared on May 10 was issued to the common stockholders.

9/30/2021 A 3 for 1 stock split was announced for common stock holders on record as of October 15. The market price of the share was $90 on Sept 30

12/1/2021 Declared a cash dividend of $1.00 per share to common stockholders of record on Dec. 10

12/20/2021 Paid the $1.00 cash dividend to the common shareholders.

instructions:

a. Prepare journal entries to record each of the above transactions. If no entry is required, indicate so.

b. Prepare all closing entries at year-end.

Diego Company manufactures one product that is sold for $71 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 54,000 units and sold 49,000 units.

The company sold 36,000 units in the East region and 13,000 units in the West region. It determined that $280,000 of its fixed selling and administrative expenses is traceable to the West region, $230,000 is traceable to the East region, and the remaining $76,000 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.   

1.) Diego is considering eliminating the West region because an internally generated report suggests the region’s total gross margin in the first year of operations was $46,000 less than its traceable fixed selling and administrative expenses. Diego believes that if it drops the West region, the East region's sales will grow by 5% in Year 2. Using the contribution approach for analyzing segment profitability and assuming all else remains constant in Year 2, what would be the profit impact of dropping the West region in Year 2?

2.) Assume the West region invests $44,000 in a new advertising campaign in Year 2 that increases its unit sales by 20%. If all else remains constant, what would be the profit impact of pursuing the advertising campaign?

The Matsui Lubricants plant uses the weighted-average method to account for its work-in-process inventories. The accounting records show the following information for a particular day:

Quantity information is obtained from the manufacturing records and includes the following:

Compute the cost of goods transferred out and the ending inventory using the weighted-average method. (Do not round intermediate calculations.)

COST OF GOODS TRANFERRED OUT ???????
COSTS IN ENDING INVENTORY    ??????

An audit firm must evaluate the client and the engagement according to professional standards. Do you feel that the full evaluation must be done on both new and existing clients? Do you think this evaluation is an effective method to assess clients

Miller Outdoor Equipment (MOE) makes four models of tents. The model names are Rookie, Novice, Hiker, and Expert. MOE manufactures the tents in two departments: Stitching and Customizing. All four models are processed initially in Stitching where all material is assembled and sewn into a basic tent. The Rookie model is then transferred to finished goods. After processing in Stitching, the other three models are transferred to Customizing for additional add-ons, and then transferred to finished goods.

There were no beginning work-in-process inventories on August 1. Data for August are shown in the following table. Ending work in process is 30 percent complete in Stitching and 30 percent complete in Customizing. Conversion costs are allocated based on the number of equivalent units processed in each department.

Required:

a. What is the unit cost of each model transferred to finished goods in August? (Round intermediate calculations to nearest whole number.)
PROUCT UNIT COST
ROOKIE ????
NOVICE    ?????
HIKER ?????
EXPERT ??????

What is the balance of the Work-in-Process Inventory on August 31 for Stitching? For Customizing? (Round intermediate calculations to nearest whole number.)
WORK IN PROCESS INVENTORY
STITCHING    ?????
CUSTOMIZING    ???????????

I AM REUESTING HELP WITH THE ONES WITH QUESTION MARKS I AM LOST ON THIS

Ratios from Comparative and Common-Size Data
Consider the following financial statements for Waverly Company. During 2013, management obtained additional bond financing to enlarge its production facilities. The company faced higher production costs during the year for such things as fuel, materials, and freight. Because of temporary government price controls, a planned price increase on products was delayed several months.
As a holder of both common and preferred stock, you decide to analyze the financial statements:

Required
a. Calculate the following for each year: current ratio, quick ratio, operating-cash-flow-to-current liabilities ratio (current liabilities were $78,000,000 at January 1, 2012), inventory turnover (inventory was $87,000,000 at January 1, 2012), debt-to-equity ratio, times-interest-earned ratio, return on assets (total assets were $493,000,000 at January 1, 2012), and return on common stockholders' equity (common stockholders' equity was $236,000,000 at January 1, 2012).
b. Calculate common-size percentages for each year's income statement.

a. Round answers to two decimal places.

b. Round answers to one decimal place.

Assume that instead of using its current accounting policy for warranties, Tesla instead expensed all warranty costs as costs were incurred. Estimate the Income (Loss) from operations that Tesla would have reported for 2014 ?