Matt Litkee is confused about under- and overapplied manufacturing overhead. Define the terms for Matt, and indicate the balance in the manufacturing overhead account applicable to each term.

Cane Company manufactures two products called Alpha and Beta that sell for $125 and $85, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 101,000 units of each product. Its unit costs for each product at this level of activity are given below: Alpha Beta Direct materials $ 30 $ 12 Direct labor 21 20 Variable manufacturing overhead 8 6 Traceable fixed manufacturing overhead 17 19 Variable selling expenses 13 9 Common fixed expenses 16 11 Total cost per unit $ 105 $ 77 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are deemed unavoidable and have been allocated to products based on sales dollars. Required: Assume that Cane’s customers would buy a maximum of 81,000 units of Alpha and 61,000 units of Beta. Also assume that the company’s raw material available for production is limited to 161,000 pounds. What is the maximum contribution margin Cane Company can earn given the limited quantity of raw materials? What is the Total Contribution Margin? $

Tesla Corporation is a publicly-traded company that has a December 31st year-end. For the 2015 fiscal year, there were 500,000 common shares outstanding all year. Net income for the year ended December 31, 2015, was $800,000. The company’s income tax rate is 30%. During 2014, the company issued a $6,000,000, 10% convertible bond at par. Each 2,000 bond is convertible into 10 common shares. No bonds have been converted as of December 31st, 2015. Also during 2014, Spade issued 200,000, $2 cumulative, convertible preferred shares. Two preferred shares are convertible into one common share. The preferred share dividend was declared and paid in June 2015. Calculate basic and diluted earnings per share for 2015.

The shareholders’ equity of Tru Corporation includes $620,000 of $1 par common stock and $1,220,000 par of 7% cumulative preferred stock. The board of directors of Tru declared cash dividends of $152,000 in 2018 after paying $62,000 cash dividends in each of 2017 and 2016.

Required:
What is the amount of dividends common shareholders will receive in 2018?

Statement of Cash Flows—Indirect Method

The comparative balance sheet of Coulson, Inc. at December 31, 20Y2 and 20Y1, is as follows:

The noncurrent asset, noncurrent liability, and stockholders’ equity accounts for 20Y2 are as follows:

Required:

Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.

Beginning of Year Assets: $26,000 $18,000

End of Year Liabilities: $62,000 $25,000

3) If the company issues common stock of $5,600 and pay dividends of $39,400, how much is net income (loss)?

4) If net income is $1,700 and dividends are $6,600, how much is common stock?

5) If the company issues common stock of $18,300 and net income is $18,400, how much is dividends?

6) If the company issues common stock of $42,700 and pay dividends of $3,400, how much is net income (loss)?

Submit a table where you contrast the Standard Costing, Operational Performance Measures, and the Balanced Scorecard with other methods as Semi-variable Standard Cost or Flexible Costing.

ETech Company was organized on January 1, 2017 to produce and sell a revolutionary smart watch. At the beginning of its second year (2018) finished goods inventory was 2,000 watches. During 2018 ETech accountant resigned and the accounting was done by an accounting student who worked part-time for the company. The income statement below was prepared by the accounting student.

ETech Company

Income Statement

As of December 31, 2018

Revenues:

   Sales revenue (38,000 watches)……………………………….                       $1,140,000

   Royalty revenue……………………………………………….                                     500

   Gain on sale of trading investment……………………………                                 7,000

   Deferred rent revenue …………..……………………………                                3,500

   Interest payable………………………………………………...                                 3,700

Total revenues …………………………………………………..                        $1,154,700

Operating expenses:

    Cost of goods manufactured. ..………………………………    $1,113,000    

    Selling and distribution expense………………………..……        195,000

    General and administrative expense…………………………           95,000

    Restructuring costs………………………………………….            25,000

    Short-term investments………………………………………           17,000

    Interest expense………………. ……………………………..           5,000

    Dividend paid………………………………………………..             1,000

Total operating expenses ………………………………………                           1,451,000

Net loss …………………………………………………………                          ($296,300)    

ETech Company

                         Schedule of Cost of Goods Manufactured

                                      As of December 31, 2018

    Purchase of direct materials…………………………………….                           360,000

    Direct manufacturing labor costs ………………………………                             79,000

    Indirect Manufacturing Overhead:

       Factory maintenance.…..…….………………………………       $35,000

       Factory insurance …. ………………………………………..           3,000
       Indirect manufacturing labor costs.…………………………..       105,000

       Rent expense …………………………………………………        84,000

       Utilities expense ………………………………………………      30,000

       Research & development expense…………………………...         15,000

       Prepaid factory insurance…………………………………….          2,000

       Factory equipment …………………………………………...       500,000

       Accumulated depreciation - factory equipment ……………….   (100,000)

   Total indirect manufacturing overhead…………………………                            674,000

    Cost of goods manufactured …………………………………..                        $1,113,000

Additional information about the company’s activities during the year is as follows:

     a. In 2018 the company produced 40,000 watches.

     b. Inventories at the beginning and end of the year were as follows:

                                                                  January1, 2018      December 31, 2018

            Direct materials………………          $8,000                       $10,000

            Work in process ……………..       $25,200                         49,000

             Finished goods ………………         $37,800                              ?

c. Seventy five percent (75%) of rent expense relates to manufacturing, 15% to general and administrative expense and 10% to selling and distribution expense.

Also, 90% of utilities expense relates to manufacturing, 6% to general and administrative expense and 4% to selling and distribution expense.

d. Factory equipment was purchased January 2, 2017 and is estimated to have a useful life of 10 years with a $5,000 salvage value remaining at the end of its useful life. The company uses the double-declining-balance method of depreciation. The accumulated depreciation of $100,000 reported in the Schedule of Cost of Goods Manufactured resulted from 2017 factory equipment depreciation. No depreciation was charged for 2018.

e. The company’s tax rate is 21 %.

The company’s CEO is concerned about the large net loss and hires your accounting firm to review the above financial statements.

Required:

1. Prepare a corrected Schedule of Cost of Goods Manufactured for the year ended December 31, 2018.
2. Calculate the cost of producing one watch (show calculation)
3. Prepare a revised multiple-step income statement for the year ended December 31, 2018.

Sequential (Step) Method of Support Department Cost Allocation

Valron Company has two support departments, Human Resources and General Factory, and two producing departments, Fabricating and Assembly.

Resources Department are allocated on the basis of number of employees, and the costs of General Factory are allocated on the basis of square footage. Now assume that Valron Company uses the sequential method to allocate support department costs. The support departments are ranked in order of highest cost to lowest cost.

Required:

1. Calculate the allocation ratios (rounded to four significant digits) for the four departments using the sequential method. If an amount is zero, enter "0". Use the rounded values for subsequent calculations.

2. Using the sequential method, allocate the costs of the Human Resources and General Factory departments to the Fabricating and Assembly departments. If an amount is zero, enter"0". Round your answers to the nearest dollar.

Static and Flexible Budgets
Graham Corporation used the following data to evaluate its current operating system. The company sells items for $10 each and used a budgeted selling price of $10 per unit.

a. Prepare the actual income statement, flexible budget, and static budget.

Do not use negative signs with any of your answers below.

For questions b., c., and d., do not use negative signs with your answers. Select either U for Unfavorable or F for Favorable using the drop down box next to each of your variance answers.

b. What is the static-budget variance of revenues?

$Answer AnswerFU

c. What is the flexible budget variance for variable costs?

$Answer AnswerFU

d. What is the flexible budget variance for fixed costs?

$Answer AnswerFU

Physical Units Method

Alomar Company manufactures four products from a joint production process: barlon, selene, plicene, and corsol. The joint costs for one batch are as follows:

At the split-off point, a batch yields 1,872 barlon, 2,753 selene, 2,643 plicene, and 3,744 corsol. All products are sold at the split-off point: barlon sells for $15 per unit, selene sells for $18 per unit, plicene sells for $27 per unit, and corsol sells for $32 per unit.

Required:

1. Allocate the joint costs using the physical units method. If required, round your percentage allocation to four decimal places and round allocated costs to the nearest dollar. Note: The total of the allocated cost does not equal to the one provided in the question data due to rounding error.

2. Suppose that the products are weighted as shown below:

Allocate the joint costs using the weighted average method. If required, round your percentage allocation to four decimal places and round allocated costs to the nearest dollar.

The following information is available for Weber Inc. on September 30 for the year just ended.

1. Of the consulting fees Weber Inc. received in advance, $800 has been earned.
2. Equipment purchased in a previous year for $18,500 will be sold after five years for $2,500.
3. Interest of $1,140 has accrued on a bank loan and is unrecorded.
4. Property taxes of $600 have accrued but are unrecorded.
5. Buildings purchased in a previous year for $68,750 will be sold after ten years for $9,250.
6. A review of the $12,500 unadjusted balance in the prepaid rent account shows a remaining balance of $9,000 at the end of the year.
7. A review of the $4,400 unadjusted balance in the supplies account shows a balance on hand at the end of the year of $4,100.
8. Weber Inc. purchased furniture in a previous year for $14,000 and expects to sell this furniture for $500 after ten years.
9. $3,000 of advertising Weber Inc. placed in the local newspaper is unrecorded and unpaid.
10. $1,000 of the television advertising paid for in advance has been used.

Prepare the required adjusting entries at September 30, 2014.
Enter the transaction letter as the description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (i.e., January 15 would be 15/Jan). For each journal entry, indicate how each account affects the balance sheet (Assets, Liabilities, Equity). Use + for increase and - for decrease. For example, if an account decreases equity, choose '-Equity'.

Gretchen wants to take the next six years off work to travel around the world. She estimates her annual cash needs at $29,000 (if she needs more, she will work odd jobs). Gretchen believes she can invest her savings at 10% until she depletes her funds.

Requirements:

1. How much money does Gretchen need now to fund her travels?

2. After speaking with a number of banks, Gretchen learns she will only be able to invest her funds at 6%. How much does she need now to fund her travels?

Research the three types of bankruptcy and answer the following questions: Who may file Chapter 7 bankruptcy? What are some of the reasons that people file bankruptcy? How does bankruptcy affect interest rates on loans? Credit cards? Then research, identify, and summarize a specific Chapter 7 bankruptcy case or issue. Incorporate the legal terminology from your textbook where appropriate, in both your original post and in your responses to your classmates. Use academic or legitimate news sources, such as The New York Times, the Los Angeles Times, the Washington Post, CNN, MSNBC, Fox News, etc.

Please select and define two ratios that measure liquidity and solvency. Please also include the formula for those ratios.