Beck Inc. uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year, the accounting records provided the following information for product 2:

1. Prepare a separate income statement through pretax income that details cost of goods sold for (a) Case A: FIFO and (b) Case B: LIFO. (Loss amounts should be indicated with a minus sign.)

2. Compute the difference between the pretax income and the ending inventory amounts for the two cases.

_{Preparing the [I] consolidation entries for sale of depreciable assets—Equity method}

_{Assume that on January 1, 2016, a parent sells to its wholly owned subsidiary, for a sale price of $162,000, equipment that originally cost $184,000. The parent originally purchased the equipment on January 1, 2012, and depreciated the equipment assuming a 10-year useful life (straight-line with no salvage value). The subsidiary has adopted the parent’s depreciation policy and depreciates the equipment over the remaining useful life of 6 years. The parent uses the equity method to account for its Equity Investment.}

_{a. Compute the annual pre-consolidation depreciation expense for the subsidiary (post-intercompany sale) and the parent (pre-intercompany sale).
b. Compute the pre-consolidation Gain on Sale recognized by the parent during 2016.}

_{c. Prepare the required [I] consolidation entry in 2016 (assume a full year of depreciation).}

_{d. Prepare the required [l] consolidation entry in 2019 (assuming the subsidiary is still holding the equipment).}

_{e. How long must we continue to make [I] consolidated entries?}

Shadee Corp. expects to sell 510 sun visors in May and 430 in June. Each visor sells for $17. Shadee’s beginning and ending finished goods inventories for May are 80 and 40 units, respectively. Ending finished goods inventory for June will be 70 units.

Each visor requires a total of $4.50 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $2.00 each. Shadee wants to have 27 closures on hand on May 1, 21 closures on May 31, and 21 closures on June 30. Additionally, Shadee’s fixed manufacturing overhead is $800 per month, and variable manufacturing overhead is $2.25 per unit produced.

Required:

1. Determine Shadee's budgeted cost of closures purchased for May and June.

2. Determine Shadee's budget manufacturing overhead for May and June.

Concord, Inc. began work on a $6,466,000 contract in 2017 to construct an office building. During 2017, Concord, Inc. incurred costs of $1,547,340, billed its customers for $1,085,000, and collected $1,013,000. At December 31, 2017, the estimated additional costs to complete the project total $3,003,660. Prepare Concord’s 2017 journal entries using the percentage-of-completion method.

We Be Warehouse Fitness Equipment incurred $80,000 of common fixed costs and $120,000 of common variable costs. Data are provided below for the capacity allowed and the capacity used.

For both departments, common fixed costs are to be allocated on the basis of capacity provided and common variable costs are to be allocated on the basis of capacity used.

The fixed and variable costs allocated to the Sauna Department are:

Jacob Weaver is a contractor operating as a sole proprietorship (EIN 12-3456789).

2018 Gross income: $243,322.25.

Business expenses: Fuel for equipment $64,080.00

                                 Repairs and maintenance $17,342.00

                                 Lubricants for Equipment $9,670.00

                                 Insurance $6,500.00

                                 Wages $6,300.00

                                 Vehicles $1,768.00

                                 Legal and Professional Expenses $1,750.00

                                 Taxes and Licenses $1,412.00

                                  Advertising $300.00

Clients owe him a total of $53,000, for work completed in 2018.

2018 estimated tax payments were $25,000.

He is using a bedroom in his house as a home office. (Square footage of home 5,600 Office 240 sq. ft.)

He has one half-time employee, Martin, who had been unemployed since returning

from Afghanistan, and is disabled.

Martin worked for Jacob for 20 hours a week, for 41 weeks of 2018.

He earned $10,500.

Jacob had to spend $7,350 for disabled access equipment for Martin.

--------------------------------

Scenario

Jacob and Taylor Weaver, ages 45 and 42 respectively, are married and are filing jointly in
2018.

They have three children, Ashley, age 9; Patrick, age 6; and John, age 18.

Social Security numbers are: Jacob, 222-33-4444; Taylor, 555-66-7777; Ashley, 888-99-1234; Patrick, 789-56-4321; John, 123-45-6789.

Taylor works part-time as a paralegal.

She earned $26,000 in 2018.

Taxes withheld: $4,200 withheld.

Estimated tax payments: $25,000.

$350 paid with their 2017 state tax return.

Jacob and Taylor bought their first house in 2018.

Home mortgage interest: $7,246.

Property tax: $2,230.

Federal income withholding: $2,350.

Charities: $4,500.

$435 to rent a moving truck.

$8,000 to put new siding on the house.

$11,600 for child care expenses ($5,800 for each child).

It was paid to Lil Tigers Daycare, 1115 S. Garrison St., Muncie, IN 47305 (EIN 98-7654321).

Taylor is a part-time student at Ball State University in Muncie.

She received a 1098-T indicating tuition and fees for 2018 in the amount of $6,011.

Health insurance for the family, through Taylor's job, cost $6000 for all 12 months of 2018.

They paid deductibles and co-payments of $550.

QUESTIONS

Please can you show all the exclusions to Taxable income and AGI only on a Form 1040 using above information. I have already completed the other parts of the form, I can do the rest additions and subtractions. Thank you

Consider and discuss the interactions between rising or falling costs, the quantity and profitability of products in a business environment. How does variable cost changes affect the contribution margin and profit as opposed to the changes in fixed costs? Provide life examples of how you see these costs in your personal life or business.

Last year, a sailboard company produced two types of boards: a regular board for multi-purpose sailing; and, a special trick board used by experts for competitions. The regular board sells for $750 and the competition board sells for $1,350. The variable production costs are $250 and $400 respectively, and the company has $400,000 in fixed costs overall. Marketing staff have determined that the company should specialize in the competition boards only, and sell the regular boards, if at all, under a different brand name. Last year the company made a profit, selling twice as many regular boards as competition boards, resulting in a fixed cost allocation of $5.00 per board. It takes 6 hours of direct labour to make a regular board and 12 hours to make a competition board. The company worked at full capacity of 19,500 direct labour hours last year.

Based on the above information only, which product or mix of products, should the company choose? Assume that any and all production can be sold.

1/Lake Power Sports sells jet skis and other powered recreational equipment. Customers pay one-third of the sales price of a jet ski when they initially purchase the ski, and then pay another one-third each year for the next two years. Because Lake has little information about the ability to collect these receivables, it uses the cost recovery method to recognize revenue on these installment sales. In 2017, Lake began operations and sold jet skis with a total price of $780,000 that cost Lake $390,000. Lake collected $260,000 in 2017, $260,000 in 2018, and $260,000 in 2019 associated with those sales. In 2018, Lake sold jet skis with a total price of $1,380,000 that cost Lake $828,000. Lake collected $460,000 in 2018, $368,000 in 2019, and $368,000 in 2020 associated with those sales. In 2020, Lake also repossessed $184,000 of jet skis that were sold in 2018. Those jet skis had a fair value of $69,000 at the time they were repossessed.

In 2019, Lake would recognize realized gross profit of:

Multiple Choice

• $260,000.

• $0.

• $420,000.

• $628,000.

2/ Johnson sells $112,000 of product to Robbins, and also purchases $12,400 of advertising services from Robbins. The advertising services have a fair value of $9,200. Johnson should record revenue on its sale of product to Robbins of:

Multiple Choice

• $99,600

• $102,800

• $108,800

• $112,000

3/ Video Planet (“VP”) sells a big screen TV package consisting of a 60-inch plasma TV, a universal remote, and on-site installation by VP staff. The installation includes programming the remote to have the TV interface with other parts of the customer’s home entertainment system. VP concludes that the TV, remote, and installation service are separate performance obligations. VP sells the 60-inch TV separately for $1,280, sells the remote separately for $80, and offers the installation service separately for $240. The entire package sells for $1,500.

Required:
How much revenue would be allocated to the TV, the remote, and the installation service?

4/ Present and future value tables of $1 at 9% are presented below.

   
Ajax Company purchased a one-year certificate of deposit for its building fund in the amount of $190,000. How much should the certificate of deposit be worth at the end of one years if interest is compounded at an annual rate of 9%?

Multiple Choice

• $205,841.

• $173,053.

• $207,100.

• $174,312.

Timpco, a retailer, makes both cash and credit sales (i.e., sales on open account). Information regarding budgeted sales for the last quarter of the year is as follows: October November December Cash sales $ 105,000 $ 87,000 $ 91,000 Credit sales 105,000 104,400 100,100 Total $ 210,000 $ 191,400 $ 191,100 Past experience shows that 5% of credit sales are uncollectible. Of the credit sales that are collectible, 60% are collected in the month of sale; the remaining 40% are collected in the month following the month of sale. Customers are granted a 1.5% discount for payment within 10 days of billing. Approximately 75% of collectible credit sales take advantage of the cash discount. Inventory purchases each month are 100% of the cost of the following month’s projected sales. (The gross profit rate for Timpco is approximately 30%.) All merchandise purchases are made on credit, with 20% paid in the month of purchase and the remainder paid in the following month. No cash discounts for early payment are in effect. Required: 1. Calculate the budgeted total cash receipts for November and December. (Round your intermediate calculations and final answers to the nearest whole dollar amount.) 2. Calculate budgeted cash disbursements for November and December (budgeted total sales for January of the coming year equals $184,000).

We produce picture frames for stores such as Michael’s and Hobby Lobby. In the assembly department, the wooden slats are added at the beginning of the process, and the glass is added when the process is 25% complete. Conversion costs are added evenly throughout the period. Here is the data related to the assembly department for November 2018:

WIP, November 1 (40% complete) 60 frames

Started in November 500 frames

WIP, November 30 (15% complete) 100 frames

Costs included in the Beginning WIP:

DM - wooden slats $ 300

DM - glass $ 180

CC $ 168

Costs added during November:

DM - wooden slats $ 2,950

DM - glass $ 1,500

CC $ 3,580

Note: When calculating equivalent units (Step 2), total costs (Step 3), and cost per equivalent unit (Step 4), you will have 3 columns - DM slats, DM glass, and CC. Therefore, when you assign costs in Step 5, you’ll assign all 3 costs for each layer.

Using Weighted Average:

a. Prepare T-accounts for WIP in units and in $ to represent this situation.

b. Prepare the 5-step Production Cost Report.

c. Update the T-accounts to reflect the amounts transferred out and the amounts in Ending WIP.

What information does cost accounting provide? What decisions can be made regarding a manufacturing operation from the data? Be specific.

250-500 words

DO NOT COPY & PASTE FROM OTHER WEBSITES PLEASE AND THANK YOU.

1. A debt of $10 000.00 with interest at 8% compounded quarterly is to be repaid by equal payments at the end of every three months for two years.

a) Calculate the size of the monthly payments.

b) Construct an amortization table.

c) Calculate the outstanding balance after three payments.

      Amortization Table

2. Barbara borrowed $12 000.00 from the bank at 9% compounded monthly. The loan is amortized with end-of-month payments over five years.

a) Calculate the interest included in the 20th payment.

b) Calculate the principal repaid in the 36th payment.

c) Construct a partial amortization schedule showing the details of the first two payments, the 20th payment, the 36th payment, and the last two payments.

d) Calculate the totals of amount paid, interest paid, and the principal repaid.

3. A $248 000.00 mortgage amortized by monthly payments over 35 years is renewable after five years. Interest is 8.12% compounded semi-annually.

          a) What is the size of the monthly payments?

          b) How much interest is paid during the first year?

          c) How much of the principal is repaid during the first five-year term?

4. A $180 000.00 mortgage is to be amortized by making monthly payments for 22.5 years. Interest is 7.2% compounded semi-annually for a four-year term.

          a) Compute the size of the monthly payment.

          b) Determine the balance at the end of the four-year term.

c) If the mortgage is renewed for a five-year term at 8.66% compounded semi-annually, what is the size of the monthly payment for the renewal term?

1/ Arizona Desert Homes (ADH) constructed a new subdivision during 2017 and 2018 under contract with Cactus Development Co. Relevant data are summarized below:

ADH recognizes revenue upon completion of the contract.

What is the journal entry in 2018 to record revenue?

Multiple Choice

• Construction in progress	460,000
  Cost of construction	660,000
  Revenue from long-term contracts		1,120,000

• Accounts receivable	1,635,000
  Revenue from long-term contracts		1,635,000

• Construction in progress	1,350,000
  Cost of construction	1,920,000
  Revenue from long-term contracts		3,270,000

• Cost of construction	2,150,000
  Gross profit	1,120,000
  Revenue from long-term contracts		3,270,000

2/ On December 15, 2018, Rigsby Sales Co. sold a tract of land that cost $3,300,000 for $5,000,000. Rigsby appropriately uses the installment sales method of accounting for this transaction. Terms called for a down payment of $440,000 with the balance in two equal annual installments payable on December 15, 2019, and December 15, 2020. Ignore interest charges. Rigsby has a December 31 year-end.

In its December 31, 2018, balance sheet, Rigsby would report:

Multiple Choice

• Installment receivables (net) of $4,560,000.

• Installment receivables (net) of $3,009,600.

• Realized gross profit of $149,600.

• Deferred gross profit of $149,600

3/ Lake Power Sports sells jet skis and other powered recreational equipment. Customers pay one-third of the sales price of a jet ski when they initially purchase the ski, and then pay another one-third each year for the next two years. Because Lake has little information about the ability to collect these receivables, it uses the cost recovery method to recognize revenue on these installment sales. In 2017, Lake began operations and sold jet skis with a total price of $750,000 that cost Lake $375,000. Lake collected $250,000 in 2017, $250,000 in 2018, and $250,000 in 2019 associated with those sales. In 2018, Lake sold jet skis with a total price of $1,200,000 that cost Lake $720,000. Lake collected $400,000 in 2018, $270,000 in 2019, and $270,000 in 2020 associated with those sales. In 2020, Lake also repossessed $260,000 of jet skis that were sold in 2018. Those jet skis had a fair value of $97,500 at the time they were repossessed.

In 2017, Lake would recognize realized gross profit of:

Multiple Choice

• $0.

• $250,000.

• $375,000.

• $125,000.

4/ Indiana Co. began a construction project in 2018 with a contract price of $161 million to be received when the project is completed in 2020. During 2018, Indiana incurred $36 million of costs and estimates an additional $89 million of costs to complete the project. Indiana recognizes revenue over time and for this project recognizes revenue over time according to the percentage of the project that has been completed.

Indiana:

Multiple Choice

• Recognized $72.00 million loss on the project in 2018.

• Recognized $36.00 million loss on the project in 2018.

• Recognized $10.37 million gross profit on the project in 2018.

• Recognized no gross profit or loss on the project in 2018.