Howarth Manufacturing Company purchased a lathe on June 30, 2014, at a cost of $115,000. The residual value of the lathe was estimated to be $10,000 at the end of a five-year life. The lathe was sold on March 31, 2018, for $34,000. Howarth uses the straight-line depreciation method for all of its plant and equipment. Partial-year depreciation is calculated based on the number of months the asset is in service.

Required:
1. Prepare a schedule to calculate the gain or loss on the sale. (don't need)
2. Prepare the journal entry to record the sale.
3. Assuming that Howarth had instead used the sum-of-the-years’-digits depreciation method, prepare the journal entry to record the sale.

Waving Through the Window You and your two roommates are starting a window washing service to help put yourself through college. There are two other well-established window washing services in your area. Should you set your price higher or lower than that of the competition? Justify your answer. One roommate believes the most important objective in setting prices for the business is to generate a large profit, while keeping an eye on your competitors’ prices; the other roommate believes it is important to maximize sales and set prices according to what your customers expect to pay. Who is right and why? How do the number of competitors in the market in this situation affect YOUR pricing strategy?

What is the current financial situation of Tesla Motors (liquidity, debt, activity, etc.)?

List sites that you gathered the information from.

The "New Expenses" account is authorized by your manager. At the end of the period, you notice that there are several transactions under this account that you do not understand. Your manager is a no-nonsense type of person and does not like trivial and/or un-researched issues brought to her/his attention. What is your course of action?

On January 1, 2018, Canseco Plumbing Fixtures purchased equipment for $58,000. Residual value at the end of an estimated four-year service life is expected to be $10,000. The company expects the machine to operate for 15,000 hours. The machine operated for 3,600 and 4,400 hours in 2018 and 2019, respectively.

a. Calculate depreciation expense for 2018 and 2019 using straight line method. (don't need)
b. Calculate depreciation expense for 2018 and 2019 using sum-of-the-years'-digits method.

C. Calculate depreciation expense for 2018 and 2019 using double-declining balance method.

d. Calculate depreciation expense for 2018 and 2019 using units-of-production method (using machine hours).
  

(Round "Depreciation per machine hour" answers to 2 decimal places.)

Redard Corporation Comparative Balance Sheets June 30, 2013 and June 30 2014 Assets 2013 2014 Cash 50,000 164,800 Accounts Receivable 230,000 195,200 Inventory 420,000 320,000 Prepaid Expenses 6,000 5,000 Furniture 144,000 148,000 Accumulated Depr - Furniture (24,000) (42,000) Total Assets 826,000 791,000 Liabilities & Stockholder’s Equity Accounts Payable 200,400 143,400 Income tax payable 7,400 4,400 Notes Payable (Long term) 20,000 40,000 Bond Payable 200,000 100,000 Common Stock $10 par value 200,000 240,000 Additional paid in capital 121,440 181,440 Retained Earnings 76,760 81,760 Total Liabilities & S/E 826,000 791,000 Redard Corporation Income Statement June 30, 2014 Sales 1,609,000 Cost of Goods Sold 1,127,800 Gross Profit 481,200 Operating Expenses 349,400 Operating Income 131,800 Gain on sale of furniture 7,000 Interest expense 23,200 Income before income taxes 115,600 Income tax expense 4,600 Net Income 111,000 Additional information: 1. Paid dividends of $6,000 2. Market price – $75.00

Find the following ratios for 2014:

Debt to Equity Ratio

Number of times interest Earned

Profit Margin

Assets Turnover

Return on Assets

Return on Equity

Earnings per Share

Price/Earnings Ratio

Dividend Yield

Entries and Schedules for Unfinished Jobs and Completed Jobs

Hildreth Company uses a job order cost system. The following data summarize the operations related to production for April, the first month of operations:

1. Materials purchased on account, $1,890.
2. Materials requisitioned and factory labor used:
   

   Job No.	Materials		Factory Labor
   101	$2,030		$2,240
   102	2,480		3,020
   103	1,640		1,480
   104	5,560		5,560
   105	3,530		4,230
   106	2,580		2,690
   For general factory use	690		3,320

3. Factory overhead costs incurred on account, $3,880.
4. Depreciation of machinery and equipment, $1,590.
5. The factory overhead rate is $45 per machine hour. Machine hours used:
   

   Job No.	Machine Hours
   101		22
   102		34
   103		15
   104		67
   105		38
   106		37
   Total		213

6. Jobs completed: 101, 102, 103, and 105.
7. Jobs were shipped and customers were billed as follows: Job 101, $6,310; Job 102, $8,440; Job 105, $11,010.

Required:

1. Journalize the entries to record the summarized operations. If an amount box does not require an entry, leave it blank.

2. Post the appropriate entries to T accounts for Work in Process and Finished Goods, using the identifying letters as transaction codes. Insert memo account balances as of the end of the month.

3. Prepare a schedule of unfinished jobs to support the balance in the work in process account.

4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.

If a corporation had retained earnings of $10,000,000, what percentage of that total should they use to pay dividends to their shareholders? What factors should the management of the company consider?

Comprehensive Problem 5 Part A: Note: You must complete part A before completing parts B and C. Genuine Spice Inc. began operations on January 1, 2016. The company produces a hand and body lotion in an eight-ounce bottle called Eternal Beauty. The lotion is sold wholesale in 12-bottle cases for $100 per case. There is a selling commission of $20 per case. The January direct materials, direct labor, and factory overhead costs are as follows: DIRECT MATERIALS Cost Behavior Units per Case Cost per Unit Direct Materials Cost per Case Cream base Variable 100 ozs. $0.02 $2.00 Natural oils Variable 30 ozs. 0.30 9.00 Bottle (8-oz.) Variable 12 bottles 0.50 6.00 $17.00 DIRECT LABOR Department Cost Behavior Time per Case Labor Rate per Hour Direct Labor Cost per Case Mixing Variable 20 min. $18.00 $6.00 Filling Variable 5 14.40 1.20 25 min. $7.20 FACTORY OVERHEAD Cost Behavior Total Cost Utilities Mixed $600 Facility lease Fixed 14,000 Equipment depreciation Fixed 4,300 Supplies Fixed 660 $19,560 Part A—Break-Even Analysis The management of Genuine Spice Inc. wishes to determine the number of cases required to break even per month. The utilities cost, which is part of factory overhead, is a mixed cost. The following information was gathered from the first six months of operation regarding this cost: 2016 Case Production Utility Total Cost January 500 $600 February 800 660 March 1,200 740 April 1,100 720 May 950 690 June 1,025 705 Required: 1. Determine the fixed and variable portion of the utility cost using the high-low method. Round the per unit cost to the nearest cent. At High Point At Low Point Variable cost per unit $ $ Total fixed cost $ $ Total cost $ $ 2. Determine the contribution margin per case. Enter your answer to the nearest cent. Contribution margin per case $ 3. Determine the fixed costs per month, including the utility fixed cost from part (1). Utilities cost (from part 1) $ Facility lease $ Equipment depreciation $ Supplies $ Total fixed costs $ 4. Determine the break-even number of cases per month. cases

On November 1, 2020, Victorious, Inc. lends $40,000 to one of its executives in exchange for a 6%, 8-month note receivable. Victorious properly accrued interest on the note at its year-end, December 31, 2020. the journal entries to record the collection of the note principle and interest on the July 1, 2021 maturity date will include a:

Multiple Choice

• credit to Interest Revenue of $1,800

• debit to Note Receivable for $40,000

• credit to Interest Revenue of $1,600

• debit to Cash of $1,200

• credit to Interest Receivable for $400

You are to prepare a cost estimate for producing 1000 assemblies. Each assembly consists of a cylindrical tube, two identical end covers, and a purchased bracket. The brackets cost $8.25 each. Each tube costs $180 for the casting and requires 2.5 standard hours of machining. It requires 12 hours to set up the machining operations and a setup is good for the machining of 500 castings. The end covers are produced on a punch press that requires 1.2 hours per cover of run time and 4.0 hours for press setup. Press setup is good for producing 400 pieces. Material costs per cover is $.50. The direct labor rate is $16.00 per hour. Manufacturing overhead is 150 percent of direct manufacturing labor. Material overhead is 3 percent of the total material and subcontract amount. General and administrative costs are 15 percent of labor and material with appropriate overhead.

What is the calculated unit cost through general and administrative costs? Show your calculations

You are to prepare a bid for producing 100 brackets. The brackets are made on a punch press and screen printed with a part number. All screen printing is done at one time, but the brackets are made in batches of 40. Punch press set up time is 2 hours per setup and .05 hour per print. Screen printing required is 6 minutes per bracket. Assume no attrition or learning curve on either process. Material cost is $.50 per piece. Direct labor rate is $15.00 and overhead is 200 percent of direct labor. G&A is 30 percent of total material, labor, and overhead costs. A 10 percent profit is expected.

                What is your total bid price for the 100 brackets? Show your calculations.

The John Day Company proposed a general and administrative (G&A) rate of 16.8 percent of total manufacturing costs on a 20x8 proposal. The contractor provided the following data upon the request of the contract negotiator who desired to analyze the rate.

1. Does the proposed 20x8 G&A rate appear to be reasonable for the estimated total manufacturing group? Include your rationale.
2. If not, based on historical information above, what G&A rate appears reasonable? Explain.

Budgeted Income Statement and Supporting Budgets The budget director of Feathered Friends Inc., with the assistance of the controller, treasurer, production manager, and sales manager, has gathered the following data for use in developing the budgeted income statement for December 2016: Estimated sales for December: Bird house 3,200 units at $50 per unit Bird feeder 3,000 units at $70 per unit Estimated inventories at December 1: Direct materials: Wood 200 ft. Plastic 240 lbs. Finished products: Bird house 320 units at $27 per unit Bird feeder 270 units at $40 per unit Desired inventories at December 31: Direct materials: Wood 220 ft. Plastic 200 lbs. Finished products: Bird house 290 units at $27 per unit Bird feeder 250 units at $41 per unit Direct materials used in production: In manufacture of Bird House: Wood 0.80 ft. per unit of product Plastic 0.50 lb. per unit of product In manufacture of Bird Feeder: Wood 1.20 ft. per unit of product Plastic 0.75 lb. per unit of product Anticipated cost of purchases and beginning and ending inventory of direct materials: Wood $7.00 per ft. Plastic $1.00 per lb. Direct labor requirements: Bird House: Fabrication Department 0.20 hr. at $16 per hr. Assembly Department 0.30 hr. at $12 per hr. Bird Feeder: Fabrication Department 0.40 hr. at $16 per hr. Assembly Department 0.35 hr. at $12 per hr. Estimated factory overhead costs for December: Indirect factory wages $75,000 Depreciation of plant and equipment 23,000 Power and light $6,000 Insurance and property tax 5,000 Estimated operating expenses for December: Sales salaries expense $70,000 Advertising expense 18,000 Office salaries expense 21,000 Depreciation expense—office equipment 600 Telephone expense—selling 550 Telephone expense—administrative 250 Travel expense—selling 4,000 Office supplies expense 200 Miscellaneous administrative expense 400 Estimated other income and expense for December: Interest revenue $200 Interest expense 122 Estimated tax rate: 30% Required: 1. Prepare a sales budget for December. Feathered Friends Inc. Sales Budget For the Month Ending December 31, 2016 Unit Sales Volume Unit Selling Price Total Sales Bird house Bird feeder Total revenue from sales 2. Prepare a production budget for December. Feathered Friends Inc. Production Budget For the Month Ending December 31, 2016 Units Bird House Bird Feeder Expected units to be sold Plus desired inventory, December 31, 2016 Total Less estimated inventory, December 1, 2016 Total units to be produced 3. Prepare a direct materials purchases budget for December. Feathered Friends Inc. Direct Materials Purchases Budget For the Month Ending December 31, 2016 Wood Plastic Total Required units for production: Bird house Bird feeder Plus desired units of inventory, December 31, 2016 Total Less estimated units of inventory, December 1, 2016 Total units to be purchased Unit price Total direct materials to be purchased 4. Prepare a direct labor cost budget for December. Feathered Friends Inc. Direct Labor Cost Budget For the Month Ending December 31, 2016 Fabrication Department Assembly Department Total Hours required for production: Bird house Bird feeder Total Hourly rate Total direct labor cost 5. Prepare a factory overhead cost budget for December. Feathered Friends Inc. Factory Overhead Cost Budget For the Month Ending December 31, 2016 Indirect factory wages Depreciation of plant and equipment Power and light Insurance and property tax Total 6. Prepare a cost of goods sold budget for December. Work in process at the beginning of December is estimated to be $29,000, and work in process at the end of December is estimated to be $35,400. Feathered Friends Inc. Cost of Goods Sold Budget For the Month Ending December 31, 2016 Direct materials: Cost of direct materials available for use Cost of direct materials placed in production Total manufacturing costs Total work in process during the period Cost of goods manufactured Cost of finished goods available for sale Cost of goods sold 7. Prepare a selling and administrative expenses budget for December. Feathered Friends Inc. Selling and Administrative Expenses Budget For the Month Ending December 31, 2016 Selling expenses: Sales salaries expense Advertising expense Telephone expense—selling Travel expense—selling Total selling expenses Administrative expenses: Office salaries expense Depreciation expense—office equipment Telephone expense—administrative Office supplies expense Miscellaneous administrative expense Total administrative expenses Total operating expenses 8. Prepare a budgeted income statement for December. Feathered Friends Inc. Budgeted Income Statement For the Month Ending December 31, 2016 Operating expenses: Total operating expenses Other income: Other expenses: