Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company’s costs:
| Fixed Cost per Month |
Cost per Car Washed |
||||||
| Cleaning supplies | $ | 0.70 | |||||
| Electricity | $ | 1,400 | $ | 0.06 | |||
| Maintenance | $ | 0.25 | |||||
| Wages and salaries | $ | 4,500 | $ | 0.40 | |||
| Depreciation | $ | 8,400 | |||||
| Rent | $ | 2,000 | |||||
| Administrative expenses | $ | 1,800 | $ | 0.04 | |||
For example, electricity costs are $1,400 per month plus $0.06 per car washed. The company expects to wash 8,200 cars in August and to collect an average of $6.10 per car washed.
The actual operating results for August are as follows:
| Lavage Rapide | ||
| Income Statement | ||
| For the Month Ended August 31 | ||
| Actual cars washed | 8,300 | |
| Revenue | $ | 52,120 |
| Expenses: | ||
| Cleaning supplies | 6,240 | |
| Electricity | 1,862 | |
| Maintenance | 2,290 | |
| Wages and salaries | 8,140 | |
| Depreciation | 8,400 | |
| Rent | 2,200 | |
| Administrative expenses | 2,028 | |
| Total expense | 31,160 | |
| Net operating income | $ | 20,960 |
Required:
Calculate the company's revenue and spending 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.)
In: Accounting
Exercise 5.12 (Algorithmic) Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost On April 1, Sangvikar Company had the following balances in its inventory accounts: Materials Inventory $12,820 Work-in-Process Inventory 21,380 Finished Goods Inventory 8,710 Work-in-process inventory is made up of three jobs with the following costs: Job 114 Job 115 Job 116 Direct materials $2,436 $2,695 $5,058 Direct labor 1,780 1,420 4,020 Applied overhead 979 781 2,211 During April, Sangvikar experienced the transactions listed below. Materials purchased on account, $29,300. Materials requisitioned: Job 114, $16,720; Job 115, $11,750; and Job 116, $5,280. Job tickets were collected and summarized: Job 114, 130 hours at $12 per hour; Job 115, 230 hours at $15 per hour; and Job 116, 90 hours at $19 per hour. Overhead is applied on the basis of direct labor cost. Actual overhead was $4,590. Job 115 was completed and transferred to the finished goods warehouse. Job 115 was shipped, and the customer was billed for 125 percent of the cost. Required: 1. Calculate the predetermined overhead rate based on direct labor cost. 55 % of direct labor cost 2. Calculate the ending balance for each job as of April 30. When required, round your answers to the nearest dollar. Use your rounded answers in subsequent computations, if necessary. Ending Balance Job 114 $ Job 115 $ Job 116 $ 3. Calculate the ending balance of Work in Process as of April 30. When required, round your answer to the nearest dollar. $ 4. Calculate the cost of goods sold for April. When required, round your answer to the nearest dollar. $ 5. Assuming that Sangvikar prices its jobs at cost plus 25 percent, calculate the price of the one job that was sold during April. Round to the nearest dollar. $
In: Accounting
Wynn Sheet Metal reported an operating loss of $196,000 for financial reporting and tax purposes in 2018. The enacted tax rate is 40%. Taxable income, tax rates, and income taxes paid in Wynn’s first four years of operation were as follows: Taxable Income Tax Rates Income Taxes Paid 2014 $ 78,000 30 % $ 23,400 2015 88,000 30 26,400 2016 98,000 40 39,200 2017 78,000 45 35,100 Required: 1. Complete the following table given below and prepare the journal entry to recognize the income tax benefit of the operating loss. Wynn elects the carryback option. 2. Show the lower portion of the 2018 income statement that reports the income tax benefit of the operating loss.
In: Accounting
The following information is available for Lock-Tite Company,
which produces special-order security products and uses a job order
costing system.
| April 30 | May 31 | ||||||
| Inventories | |||||||
| Raw materials | $ | 27,000 | $ | 51,000 | |||
| Work in process | 9,200 | 20,700 | |||||
| Finished goods | 66,000 | 34,500 | |||||
| Activities and information for May | |||||||
| Raw materials purchases (paid with cash) | 197,000 | ||||||
| Factory payroll (paid with cash) | 150,000 | ||||||
| Factory overhead | |||||||
| Indirect materials | 13,000 | ||||||
| Indirect labor | 34,500 | ||||||
| Other overhead costs | 118,000 | ||||||
| Sales (received in cash) | 1,100,000 | ||||||
| Predetermined overhead rate based on direct labor cost | 55 | % | |||||
Compute the following amounts for the month of May using T-accounts.
*Do not consider any underapplied or overapplied overhead.
In: Accounting
You take out a 25 year, $275, 000 mortgage with constant payments at the end of each month and i (12) = 6%. After 15 years, you wish to refinance the mortgage with a 10 year mortgage (also with constant payments at the end of each month) so that you pay $100 less each month than you originally were paying. Find the monthly nominal interest rate corresponding to this new mortgage
In: Accounting
What could be a recruitment advertising for bank teller?
What kind payment and benefits of the job as bank teller?
What kind interview questions would be ask if to get into this job. Would like 6 examples please.
In: Accounting
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.
In: Accounting
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?
In: Accounting
| The following information is from White Mountain Furniture Showroom’s financial records. |
| Month | Sales | Purchases | ||||
| July | $ | 75,000 | $ | 48,000 | ||
| August | 75,000 | 47,000 | ||||
| September | 68,000 | 35,000 | ||||
| October | 72,000 | 53,000 | ||||
|
Collections from customers are normally 66 percent in the month of sale, 16 percent in the month following the sale, and 16 percent in the second month following the sale. The balance is expected to be uncollectible. All purchases are on account. Management takes full advantage of the 2 percent discount allowed on purchases paid for by the tenth of the following month. Purchases for November are budgeted at $67,000, and sales for November are forecasted at $73,000. Cash disbursements for expenses are expected to be $14,400 for the month of November. The company’s cash balance on November 1 was $37,000. |
| Required: |
| 1. |
Prepare the schedule for expected cash collections during November. |
| 2. |
Prepare the schedule for expected cash disbursements during November. |
| 3. | Prepare the schedule for expected cash balance on November 30. |
In: Accounting
What is the current financial situation of Tesla Motors (liquidity, debt, activity, etc.)?
List sites that you gathered the information from.
In: Accounting
|
San Fernando Fertilizer Company plans to sell 240,000 units of finished product in July and anticipates a growth rate in sales of 6 percent per month. The desired monthly ending inventory in units of finished product is 80 percent of the next month's estimated sales. There are 192,000 finished units in inventory on June 30. Each unit of finished product requires 5 pounds of raw material at a cost of $1.75 per pound. There are 720,000 pounds of raw material in inventory on June 30. |
| Required: |
| 1. |
Compute the company's total required production in units of finished product for the entire three-month period ending September 30. (Do not round intermediate calculations. Round your final answer to the nearest unit.)
|
||
| 2. |
Independent of your answer to requirement (1), assume the company plans to produce 680,000 units of finished product in the three-month period ending September 30, and to have raw-material inventory on hand at the end of the three-month period equal to 25 percent of the use in that period. Compute the total estimated cost of raw-material purchases for the entire three-month period ending September 30.
|
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In: Accounting
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?
In: Accounting
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.
|
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C. Calculate depreciation expense for 2018 and 2019 using double-declining balance method.
|
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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.)
|
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In: Accounting
In: Accounting
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
In: Accounting