Marvel Parts, Inc., manufactures auto accessories. One of the company’s products is a set of seat covers that can be adjusted to fit nearly any small car. The company has a standard cost system in use for all of its products. According to the standards that have been set for the seat covers, the factory should work 1,005 hours each month to produce 2,010 sets of covers. The standard costs associated with this level of production are:

During August, the factory worked only 1,200 direct labor-hours and produced 2,600 sets of covers. The following actual costs were recorded during the month:

At standard, each set of covers should require 2.0 yards of material. All of the materials purchased during the month were used in production.

Required:

1. Compute the materials price and quantity variances for August.

2. Compute the labor rate and efficiency variances for August.

3. Compute the variable overhead rate and efficiency variances for August.

(Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Hoodys for Good manufactures and sells hooded sweatshirts. The company locates its manufacturing facilities in areas with high unemployment rates and provides on-site daycare and education for its employees’ children. The company recently started a “one for one” program where they donate one sweatshirt for every one sold to an international charity to provide to a child in need. The customer pays the shipping cost for items purchased, but the company pays to ship to the international charities. Cost information is summarized below: Variable Costs Direct Materials $3.20 per unit produced Direct Labor $2.70 per unit produced Variable Manufacturing Overhead $0.70 per unit produced Shipping $2.80 per unit donated Fixed Costs Salaries $22,000 per month Advertising $55,000 per month Production Equipment $42,000 per month Answer each of the following independent questions. 1. Assume that the price of each sweatshirt sold is $30. a. How much contribution margin is earned on each unit sold to a paying customer? (Round your final answers to 2 decimal places.) b. How much contribution margin is lost on each unit donated to charity? (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.) c. If one sweatshirt is donated for each one sold, what is the weighted-average contribution margin per unit produced? (Round your answers to 2 decimal places.) d. How many total units must be produced to break-even? How many must be sold and how many donated? 2. If the company expects to sell 4,700 sweatshirts and donate 4,700 sweatshirts per month, what price must be charged to earn a target profit of $22,000 per month? 3. Assume that Hoodys for Good's managers are trying to decide whether to set the price at $40 or $65. If the price is set at $40, they think they can sell 10,200 units (and donate 10,200 units). If the price is set at $65, they only expect to be able to sell (and donate) 5,700 units. a. If the company’s goal is to maximize economic profit, what price should they charge? b. If the company’s goal is to do the most social good, what price should they charge?

The long-term liability section of Twin Digital Corporation’s balance sheet as of December 31, 2017, included 10% bonds having a face amount of $50 million and a remaining discount of $1 million. Disclosure notes indicate the bonds were issued to yield 12%. Interest expense is recorded at the effective interest rate and paid on January 1 and July 1 of each year. On July 1, 2018, Twin Digital retired the bonds at 103 ($51.5 million) before their scheduled maturity. Required: 1. & 2. Prepare the necessary journal entries for Twin Digital on July 1, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollar.)

Whistler Company determined that in the production of their products last period; they had a favorable price variance and an unfavorable quantity variance for direct

materials. What might be the cause of this pattern of variances?

Using the information given below, prepare an income statement, Statement of Retained Earnings and balance sheet for Hanson Storage from the adjusted trial balance. No additional investments in the company were made during the year. ( really need help with making an income statement, statement of retained earnings, and balance sheet.

Income Statement

Use the information below to create an Income Statement for the Tudor family.

Watkin and Yolandi combined income is $130,000. Assume their average tax rate including fed/state is 20%. Watkin’s income is $55,000 and Yolandi’s is $75,000. Knowing their individual incomes will allow us to calculate their FICA taxes. (Use the info below to calculate the FICA taxes. Only calculate the employee portion.)

Topic 751 - Social Security and Medicare Withholding Rates

Taxes under the Federal Insurance Contributions Act (FICA) are composed of the old-age, survivors, and disability insurance taxes, also known as Social Security taxes, and the hospital insurance tax, also known as Medicare taxes. Different rates apply for these taxes.

The current tax rate for Social Security is 6.2% for the employer and 6.2% for the employee, or 12.4% total. The current rate for Medicare is 1.45% for the employer and 1.45% for the employee, or 2.9% total. Refer to Publication 15, (Circular E), Employer's Tax Guide, for more information; or Publication 51, (Circular A), Agricultural Employer’s Tax Guide, for agricultural employers.

Only the Social Security tax has a wage base limit. The wage base limit is the maximum wage that is subject to the tax for that year. For earnings in 2018, this base is $128,700.

They each save $500 per month. Their mortgage payment is $3,333 per month (PITI), they lease two cars for a total of $6,000 per year and have college loans payments of $120 per month.

Their utilities are roughly $150 a month and they estimate they spent about $210 a week on food. The premiums for their auto insurance totaled to $1600 for the year.

They had some other expenses for 2018 they did not itemize that totaled to $9,670.

Warnerwoods Company uses a periodic inventory system. It entered into the following purchases and sales transactions for March. Date Activities Units Acquired at Cost Units Sold at Retail Mar. 1 Beginning inventory 145 units @ $80 per unit Mar. 5 Purchase 445 units @ $85 per unit Mar. 9 Sales 465 units @ $115 per unit Mar. 18 Purchase 210 units @ $90 per unit Mar. 25 Purchase 290 units @ $92 per unit Mar. 29 Sales 250 units @ $125 per unit Totals 1,090 units 715 units For specific identification, the March 9 sale consisted of 90 units from beginning inventory and 375 units from the March 5 purchase; the March 29 sale consisted of 85 units from the March 18 purchase and 165 units from the March 25 purchase.

Environmental costing is an attempt to take the explicit and implicit environmental cost associated with a product into account during the production process. Required: Based on your own research on Environmental Costing, discuss what you have learned about it. You may share examples, provide definitions, or anything else relevant to the topic.

In January 2018, the Paper Division of Dunder Mifflin Inc. purchased a piece of property in Scranton, Pennsylvania for $475,000. Other fees associated with the purchase, including closing costs and realtor commissions, totaled $25,000. The property contains land, a warehouse, and equipment. The Vice President of the Paper Division, Andy Bernard, and the Chief Financial Officer of Dunder Mifflin, Oscar Martinez, are discussing how the cost of the property should be allocated to the items purchased. The VP of the Paper Division, Andy Bernard, wants to allocate most of the cost to the land, while the CFO argues that they should allocate the bulk of the purchase cost to the equipment and warehouse because “no one wants property in Scranton.” Assume that the same depreciation methods are used for financial reporting and tax purposes, and tax rates won’t change over the next 5 years. Andy Bernard is hoping to be promoted to the VP of the Printer Division, which is a much larger division than the Paper Division. A key determinant of whether Bernard will be promoted is the profitability of the Paper Division over the next two years.

Question: What is your recommendation for allocating the purchase costs to the assets? (6 pts.)

3. Nonconstant growth stock

As companies evolve, certain factors can drive sudden growth. This may lead to a period of nonconstant, or variable, growth. This would cause the expected growth rate to increase or decrease, thereby affecting the valuation model. For companies in such situations, you would refer to the variable, or nonconstant, growth model for the valuation of the company’s stock.

Consider the case of Portman Industries:

Portman Industries just paid a dividend of $2.88 per share. The company expects the coming year to be very profitable, and its dividend is expected to grow by 20.00% over the next year. After the next year, though, Portman’s dividend is expected to grow at a constant rate of 4.00% per year.

Assuming that the market is in equilibrium, use the information just given to complete the table.

The risk-free rate (rRFrRF) is 5.00%, the market risk premium (RPMRPM) is 6.00%, and Portman’s beta is 1.80.

What is the expected dividend yield for Portman’s stock today?

A. 13.38%

B.11.53%

C. 9.60%

D. 12.00%

(Compute FIFO, LIFO, and Average-Cost) Pillsbury Company's record of transactions concerning part WA6 for the month of September was as follows.

Instructions:

(a) Compute the inventory at September 30 on each of the following bases. Assume that perpetual inventory records are kept in units only. Carry unit cost to the nearest cent.

(1) First-in, first-out (FIFO).

(2)Last-in, Last-out (LIFO).

(3) Average cost.

(b) If the perpetual inventory record is kept in dollars, and costs are computed at the time of each withdrawal, what amount would be shown as ending inventory in (1),(2), and (3) above? Carry average unit costs to four decimal places.

Clearly Mark Your Answers

For an auditor how are management assertions useful?

What are the three types of audit procedures and describe their purpose?

Minden Company is a wholesale distributor of premium European chocolates. The company’s balance sheet as of April 30 is given below:

The company is in the process of preparing a budget for May and has assembled the following data:

1. Sales are budgeted at $255,000 for May. Of these sales, $76,500 will be for cash; the remainder will be credit sales. One-half of a month’s credit sales are collected in the month the sales are made, and the remainder is collected in the following month. All of the April 30 accounts receivable will be collected in May.

2. Purchases of inventory are expected to total $189,000 during May. These purchases will all be on account. Forty percent of all purchases are paid for in the month of purchase; the remainder are paid in the following month. All of the April 30 accounts payable to suppliers will be paid during May.

3. The May 31 inventory balance is budgeted at $77,500.

4. Selling and administrative expenses for May are budgeted at $93,600, exclusive of depreciation. These expenses will be paid in cash. Depreciation is budgeted at $6,250 for the month.

5. The note payable on the April 30 balance sheet will be paid during May, with $370 in interest. (All of the interest relates to May.)

6. New refrigerating equipment costing $8,600 will be purchased for cash during May.

7. During May, the company will borrow $29,500 from its bank by giving a new note payable to the bank for that amount. The new note will be due in one year.

Required:

1. Calculate the expected cash collections for May.

2. Calculate the expected cash disbursements for merchandise purchases for May.

3. Prepare a cash budget for May.

4. Prepare a budgeted income statement for May.

5. Prepare a budgeted balance sheet as of May 31.

Sales, Production, Direct Materials Purchases, and Direct Labor Cost Budgets

The budget director of Gourmet Grill Company requests estimates of sales, production, and other operating data from the various administrative units every month. Selected information concerning sales and production for July 2016 is summarized as follows:

a. Estimated sales for July by sales territory:

b. Estimated inventories at July 1:

c. Desired inventories at July 31:

d. Direct materials used in production:

e. Anticipated purchase price for direct materials:

f. Direct labor requirements:

Required:

1. Prepare a sales budget for July.

2. Prepare a production budget for July.

3. Prepare a direct materials purchases budget for July.

4. Prepare a direct labor cost budget for July.