Closing Entries (Net Income)

The work sheet for Major Advising for the month ended January 31, 20-- is shown.

1. Enter the existing balance for each T account. Select Bal. and enter the amount.

3. Post the closing entries to the T accounts. If there is more than one closing entry for an account, enter in the order given in the journal.

2. Prepare closing entries in general journal form. Then post the closing entries to the T accounts.

Snake River Sawmill manufactures two lumber products from a joint milling process. The two products developed are mine support braces (MSB) and unseasoned commercial building lumber (CBL). A standard production run incurs joint costs of $470,000 and results in 77,000 units of MSB and 107,000 units of CBL. Each MSB sells for $3, and each unit of CBL sells for $11.

3. Assume the commercial building lumber is not marketable at split-off but must be further planed and sized at a cost of $557,800 per production run. During this process, 11,700 units are unavoidably lost; these spoiled units have no value. The remaining units of commercial building lumber are saleable at $11.00 per unit. The mine support braces, although saleable immediately at the split-off point, are coated with a tarlike preservative that costs $270,000 per production run. The braces are then sold for $13.50 each. Using the net-realizable-value basis, compute the completed cost assigned to each unit of commercial building lumber. (Round the calculation of "Relative Proportion" to the nearest whole percent. Round your final answer to 2 decimal places.)

PA6-1 Calculating Contribution Margin, Contribution Margin Ratio, Break-Even Point [LO 6-1, 6-2]

Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows:

Required:
1. Complete the table. (Round your "Cost per Unit" answers to 2 decimal places.)

  
2. Calculate Hermosa’s contribution margin ratio and its total contribution margin at each sales level indicated in the table assuming the company sells each bike for $800. (Round your percentage answers to 2 decimal places. (i.e. .1234 should be entered as 12.34%.))

4. Calculate Hermosa’s break-even point in units and sales revenue. (Round your answers to the nearest whole number.)

How to analyze the cost-effectiveness in general of the article by Ekwaru. J.P., Ohinmas, A., Tran, B.X., Setayeshgar, S., Johnson, J.A., & Veugeiers, P.J. (2017). Cost-effectiveness of a school based health promotion program in Canada: A life-course modeling approach.

i've been reading about cash flow diagrams, disbursements and receipts. In the engineering economics textbook i'm reading, its says " since earlier cash flows are more valuable than later cash flows, we cannot just add them together. Instead, each alternative is resolved into a set of cash flows".

1. can you try to help me understand the basic ideas of cash flows and cash flow diagrams? maybe provide a few basic examples to solidify the concept

2. please explain why we cannot just add them too

Reporting on Discontinued Operations—Disposal in Current Year

On August 1, 2020, Fischer Inc. decided to discontinue the operations of its Services Division, which qualifies as a business component. An agreement was formalized to sell this component for $436,800 cash. The book value of the assets of the Services Division was $504,000. The disposal date was August 1, 2020. The income tax rate is 25%, and the accounting year-end is December 31. On December 31, 2020, the pretax income from all operations, including an operating loss of $56,000 incurred by the Services Division prior to August 1, 2020, was $1,120,000. There were 150,000 weighted average common shares outstanding during 2020.

Required

Prepare a partial income statement beginning with income from continuing operations. Include the earnings per share disclosures.

• Use a negative sign to indicate a loss.
• Round the per share amounts to two decimal places.

Answer

At the beginning of the year, Learer Company’s manager estimated total direct labor cost assuming 45 persons working an average of 2,000 hours each at an average wage rate of $25 per hour. The manager also estimated the following manufacturing overhead costs for the year.

At year-end, records show the company incurred $1,820,000 of actual overhead costs. It completed and sold five jobs with the following direct labor costs: Job 201, $610,000; Job 202, $569,000; Job 203, $304,000; Job 204, $722,000; and Job 205, $320,000. In addition, Job 206 is in process at the end of the year and had been charged $23,000 for direct labor. No jobs were in process at the beginning of the year. The company’s predetermined overhead rate is based on direct labor cost.

Required
1-a. Determine the predetermined overhead rate for the year.
1-b. Determine the total overhead cost applied to each of the six jobs during the year.
1-c. Determine the over- or underapplied overhead at the year-end.
2. Assuming that any over- or underapplied overhead is not material, prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold at the end of the year.

Problem 15-5

Before Carla Corporation engages in the treasury stock transactions listed below, its general ledger reflects, among others, the following account balances (par value of its stock is $30 per share).

Record the treasury stock transactions (given below) under the cost method of handling treasury stock; use the FIFO method for purchase-sale purposes. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Buzz Appliances manufactures two​ products: Food Processors and Espresso Machines. The following data are​ available:

The company can manufacture two food processors per machine hour and three espresso machines per machine hour. The​ company's production capacity is

1 comma 6001,600

machine hours per month.

The company has demand of

1 comma 2001,200

espresso machines. How many espresso machines and food processors should they produce based on demand and available machine​ hours?

Preparing a Cash Budget

La Famiglia Pizzeria provided the following information for the month of October:

1. Sales are budgeted to be $152,000. About 85% of sales is cash; the remainder is on account.
2. La Famiglia expects that, on average, 70% of credit sales will be paid in the month of sale, and 28% will be paid in the following month.
3. Food and supplies purchases, all on account, are expected to be $117,000. La Famiglia pays 25% in the month of purchase and 75% in the month following purchase.
4. Most of the work is done by the owners, who typically withdraw $6,000 a month from the business as their salary. (Note: The $6,000 is a payment in total to the two owners, not per person.) Various part-time workers cost $7,300 per month. They are paid for their work weekly, so on average 90% of their wages are paid in the month incurred and the remaining 10% in the next month.
5. Utilities average $5,950 per month. Rent on the building is $4,100 per month.
6. Insurance is paid quarterly; the next payment of $1,200 is due in October.
7. September sales were $181,500 and purchases of food and supplies in September equaled $130,000.
8. The cash balance on October 1 is $2,147.

Required:

If required, round your answers to the nearest dollar.

1. Calculate the cash receipts expected in October.
$

2. Calculate the cash needed in October to pay for food purchases.
$

3. Prepare a cash budget for the month of October.

Departmental Overhead Rates

Mariposa, Inc., produces machine tools and currently uses a plantwide overhead rate, based on machine hours. Harry Whipple, the plant manager, has heard that departmental overhead rates can offer significantly better cost assignments than can a plantwide rate.

Mariposa has the following data for its two departments for the coming year:

Required:

1. Compute a predetermined overhead rate for the plant as a whole based on machine hours.
$ per machine hour

2. Compute predetermined overhead rates for each department using machine hours. Round your answers to one decimal place.

3. Suppose that a machine tool (Product X75) used 70 machine hours from Department A and 160 machine hours from Department B. A second machine tool (Product Y15) used 160 machine hours from Department A and 70 machine hours from Department B. Compute the overhead cost assigned to each product using the plantwide rate computed in Requirement 1.

Repeat the computation using the departmental rates found in Requirement 2.

Which of the two approaches gives the fairest assignment?

4. Repeat Requirement 3 assuming the expected overhead cost for Department B is $240,000.

Would you recommend departmental rates over a plantwide rate?

Predetermined Overhead Rate, Overhead Variances, Journal Entries

Craig Company uses a predetermined overhead rate to assign overhead to jobs. Because Craig's production is machine intensive, overhead is applied on the basis of machine hours. The expected overhead for the year was $6,461,400, and the practical level of activity is 363,000 machine hours.

   During the year, Craig used 369,500 machine hours and incurred actual overhead costs of $6,502,100. Craig also had the following balances of applied overhead in its accounts:

4. Assuming the overhead variance is material, prepare the journal entry that appropriately disposes of the overhead variance at the end of the year. If an amount box does not require an entry, leave it blank.

FDP Company produces a variety of home security products. Gary Price, the company's president, is concerned with the fourth-quarter market demand for the company's products. Unless something is done in the last two months of the year, the company is likely to miss its earnings expectations of Wall Street analysts. Price still remembers when FDP's earnings were below analysts' expectations by two cents a share three years ago, and the company's share price fell 19% the day earnings were announced. In a recent meeting, Price told his top management that something must be done quickly. One proposal by the marketing vice president was to give a deep discount to the company's major customers to increase sales, it may not help the bottom line; to the contrary, it could lower income. The controller said, "Since we have enough storage capacity, we might simply increase our production in the fourth quarter to increase our reported profit."

• Gary Price is not sure how the increase in production without a corresponding increase in sales could help boost the company's income. Explain to Price how income carries with respect to production level.
• Is there an ethical concern in this situation? If so, which parties are affected? Explain

Predetermined Overhead Rates, Overhead Variances, Unit Costs

Primera Company produces two products and uses a predetermined overhead rate to apply overhead. Primera currently applies overhead using a plantwide rate based on direct labor hours. Consideration is being given to the use of departmental overhead rates where overhead would be applied on the basis of direct labor hours in Department 1 and on the basis of machine hours in Department 2. At the beginning of the year, the following estimates are provided:

Actual results reported by department and product during the year are as follows:

Required:

1. Compute the plantwide predetermined overhead rate.
$ per direct labor hour

Calculate the overhead assigned to each product.

2. Calculate the predetermined departmental overhead rates. If required, round your answers to the nearest cent.

Calculate the overhead assigned to each product.

3. Using departmental rates, compute the applied overhead for the year.
$

What is the under- or overapplied overhead for the firm?
$  

4. Prepare the journal entry that disposes of the overhead variance calculated in Requirement 3, assuming it is not material in amount.

Management Accounting question

Auto Robot Ltd which manufactures two products P & Q has provided the following information.
P (shs) Q (shs) Selling price per unit 10 12
Variable cost per unit 2 8
Fixed cost 50,000 34,000
Required:-
i) Calculate the B. E. P. of each product in units and in shs.
ii) Calculate the margin of safety if budgeted sales are 10,000 units each
iii) Compute the profit of each product if sales in units are 20% above the B. E. P.