A department uses the FIFO method of process costing. All direct materials are added at the beginning of the process. This department has the following data for this month.

• 200 units in beginning WIP (51% complete with respect to conversion costs).
• 10,652 units started
• 123 units in ending WIP (36% complete with respect to conversion costs).
• $1,411 beginning WIP direct materials costs
• $2,481 beginning WIP conversion costs
• $107,056 current month direct materials costs
• $87,452 current month conversion costs

What is the department's direct material cost per equivalent unit for this month (round final answer to nearest cent if necessary)?

1. A department uses the FIFO method of process costing. All direct materials are added at the beginning of the process. This department has the following data for this month.

   • 166 units in beginning WIP (56% complete with respect to conversion costs).
   • 10,206 units started
   • 184 units in ending WIP (43% complete with respect to conversion costs).
   • $22 direct material cost per equivalent unit
   • $12 conversion cost per equivalent unit

   What is the department's total cost of ending WIP for this month (round final answer to nearest cent if necessary)?

Perrin Co has 2 divisions, A and B. Division A has limited skilled labour and is operating at full capacity making product Y. It has been asked to supply a different product, X to Division B. Division B currently sources this product externally for $700 per unit. The same grade of materials and labour is used in both products. The cost card is below :
Product Y.X
Selling price $600. -
materials ($50 per kg) - $200.$150
Labour ($20 per hr) - $80.$120
Fixed overhead ($15 per hr) - $60.$90

Using opportunity cost approach to transfer pricing, what is the minimum transfer price?

Please explain your answer with workings and the reasoning behind it.
Thanks.

Which form of stock is a better investment for shareholders -- common or preferred? State your reasons as if you were trying to inform someone which type of stock to invest in.

(TCO B) The following information pertains to Fox Inc.’s portfolio of marketable securities for the Year ended Dec 31, Year 1 and Dec 31, Year 2.

Note 1: Fox Inc. uses US GAAP
Note 2: Fox Inc. uses valuation accounts to record changes in the fair value of its marketable securities
Note 3: The Martin Co. security was purchase at par value
Note 4: The decline in the value of Martin Co. is considered to be other than temporary

Requirement:
Record the journal entries for the following marketable securities transactions based on the information given in the table.

• (1) Mark to market journal entry for the Smith Co security at 12/31 Year 1
• (2) Mark to market journal entry for the Williams Co security at 12/31 Year 1
• (3) Mark to market journal entry for the Smith Co security at 12/31 Year 2
• (4) Mark to market journal entry for the Williams Co security at 12/31 Year 2
• (5) Journal entry to record purchase of Martin Co. Investment
• (6) Journal entry to record the impairment of Martin Co. Investment

Six Measures of Solvency or Profitability.

The following data were taken from the financial statements of Gates Inc. for the current fiscal year.

Assuming that total assets were $4,705,000 at the beginning of the current fiscal year, determine the following. When required, round to one decimal place.

Four years ago, Travis, a single taxpayer, acquired stock in a corporation that qualified as a small business corporation under § 1244, at a cost of $60,000. Travis wants to give his son, Jaden, $20,000 to help finance Jaden’s college education. The stock is currently worth $20,000. Travis is considering selling the stock in the current year for $20,000 and giving the cash to Jaden. As an alternative, Travis could give the stock to Jaden and let Jaden sell it for $20,000. Which alternative should Travis choose?

What is an Estimated Returns Inventory

An example of a Closing journal entry for sales revenue and sales discounts forfeited.

An example of Journal entry to record cost of merchandise sold under perpetual inventory system.

what is the Lower-of-cost-or-market (LCM) rule

Description of a good merchandise inventory control system.

Formula to calculate weighted-average unit cost for merchandise inventory.

Liberty Inc. acquired 100% of the voting common stock of Valance Inc. on January 1, 2018 by issuing 4,000 shares of Liberty Inc. $40 par value common stock that had a fair value of $120 per share. Valance Inc. will dissolve after the acquisition. Liberty incurred $40,000 of legal and accounting fees; and paid $25,000 in stock issuance costs as a result of this acquisition. The book value and fair value of Valance’s accounts on that date (prior to creating the combination) along with the book value of Pace's accounts are shown below:

Exercise 5-13 (Video)

Billings Company has the following information available for September 2020.

Unit selling price of video game consoles$400

Unit variable costs$280

Total fixed costs$54,000

Units sold600

Compute the unit contribution margin.

Unit contribution margin

Prepare a CVP income statement that shows both total and per unit amounts.

BILLINGS COMPANY
CVP Income Statement
For the Month Ended September 30, 2020

Total

Per Unit

Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs

$

$

Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs

Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs

$

Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs

Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs

$

Compute Billings’ break-even point in units.

Break-even point in units units

Prepare a CVP income statement for the break-even point that shows both total and per unit amounts.

BILLINGS COMPANY
CVP Income Statement
For the Month Ended September 30, 2020

Total

Per Unit

Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs

$

$

Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs

Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs

$

Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs

Administrative ExpensesContribution MarginCost of Goods SoldFixed CostsGross ProfitNet Income/(Loss)SalesSelling ExpensesVariable Costs

$

Riverbed Company was formed on December 1, 2016. The following information is available from Riverbed’s inventory records for Product BAP.

A physical inventory on March 31, 2017, shows 1,952 units on hand.

1. Prepare schedule to compute the ending inventory at March 31, 2017, under FIFO inventory method.

2. Prepare schedule to compute the ending inventory at March 31, 2017, under LIFO inventory method.

3. Calculate average-cost per unit. (Round answer to 2 decimal places, e.g. 2.76.)

4. Compute the ending inventory at March 31, 2017, under Weighted-average inventory method. (Round answer to 0 decimal places, e.g. 2,760.)

Beech Corporation is a merchandising company that is preparing a master budget for the third quarter of the calendar year. The company’s balance sheet as of June 30th is shown below:

beech corporation balance sheet June 30

1. Estimated sales for July, August, September, and October will be $350,000, $370,000, $360,000, and $380,000, respectively.

2. All sales are on credit and all credit sales are collected. Each month’s credit sales are collected 45% in the month of sale and 55% in the month following the sale. All of the accounts receivable at June 30 will be collected in July.

3. Each month’s ending inventory must equal 20% of the cost of next month’s sales. The cost of goods sold is 70% of sales. The company pays for 30% of its merchandise purchases in the month of the purchase and the remaining 70% in the month following the purchase. All of the accounts payable at June 30 will be paid in July.

4. Monthly selling and administrative expenses are always $46,000. Each month $7,000 of this total amount is depreciation expense and the remaining $39,000 relates to expenses that are paid in the month they are incurred.

5. The company does not plan to borrow money or pay or declare dividends during the quarter ended September 30. The company does not plan to issue any common stock or repurchase its own stock during the quarter ended September 30.

Required:

1. Prepare a schedule of expected cash collections for July, August, and September. Also compute total cash collections for the quarter ended September 30.

2-a. Prepare a merchandise purchases budget for July, August, and September. Also compute total merchandise purchases for the quarter ended September 30.

2-b. Prepare a schedule of expected cash disbursements for merchandise purchases for July, August, and September. Also compute total cash disbursements for merchandise purchases for the quarter ended September 30.

3. Prepare an income statement for the quarter ended September 30.

4. Prepare a balance sheet as of September 30.

(TCO D) On January 1, 2010, Solis Co. issued its 10% bonds in the face amount of $3,000,000, which mature on January 1, 2020. The bonds were issued for $3,405,000 to yield 8%. Solis uses the effective-interest method of amortizing bond premium. Interest is payable semi-annually on July 1st and January 1st each year . At December 31, 2010, Please show the Journal entries to record the above:

1. Journal entry to record the Issue of Bonds on January 1, 2010.

2. Journal Entry to record the payment of Interest on July 1st, 2010 and January 1st, 2011. Be sure to record any adjusting entry for December 31st, 2010.

3. What is the Unamortized Discount or Premium Balance on Bonds Payable as of December 31st, 2011?? (Using the Effective Interest Method)

(Hint: Prepare yourself a Schedule like in the textbook to help you do this problem) (Round each answers to nearest dollar when preparing your schedule.)

Nash Company cans a variety of vegetable-type soups. Recently, the company decided to value its inventories using dollar-value LIFO pools. The clerk who accounts for inventories does not understand how to value the inventory pools using this new method, so, as a private consultant, you have been asked to teach him how this new method works.

He has provided you with the following information about purchases made over a 6-year period.

You have already explained to him how this inventory method is maintained, but he would feel better about it if you were to leave him detailed instructions explaining how these calculations are done and why he needs to put all inventories at a base-year value.

Compute the ending inventory for Richardson Company for 2013 through 2018 using dollar-value LIFO.

Ending inventory:

If you were to open a business, how would it be organized? Identify the type of business you might start and why you would choose that form of organization.