The following information concerns several of the inventory items at DC’s:

1. Determine the amount of inventory to be reported on the financial statements using the lower of cost or net realizable value method of valuation under lower of cost or net realizable value for each item separately.
2. Determine the amount of inventory to be reported on the financial statements using the lower of cost or net realizable value method of valuation under lower of total cost or total net realizable value.
3. Determine the amount of inventory to be reported on the financial statements using the lower of cost or net realizable value method of valuation under lower of total cost or total net realizable value by department.

(Do not round your intermediate calculations. Round your answers to 2 decimal places.)

Maverick’s inventory count, completed on December 31, 2016, revealed the following ending inventory balances:

The company’s 2017 payroll data revealed the following actual payroll costs for the year:

The following information was taken from Maverick’s Schedule of Plant Assets. All assets are depreciated using the straight-line method.

Other miscellaneous costs for 2017 all paid in cash included:

Additional information about Maverick’s operations in 2017 includes the following:

Prepare the journal entries to record Maverick’s costs for 2017. (Use Salaries Payable and Wages Payable accounts for payroll costs.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Post entries in order presented in the problem. Round answers to 0 decimal places, e.g. 5,275.)

Prepare the appropriate T-accounts for Raw Materials Inventory, Work-in-Process Inventory, Finished Goods Inventory, Manufacturing Overhead Control, Cost of Goods Sold, and Sales, and record Maverick’s transactions for 2017. (Post entries in order presented in the problem. Round answers to 0 decimal places, e.g. 5,275.)

Was manufacturing under- or overapplied in 2017? By how much? (Round answer to 0 decimal places, e.g. 5,275.)

Make the adjusting entry necessary to close the under- or overapplied overhead to cost of goods sold. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.)
If Maverick chooses instead to prorate under- or overapplied overhead, what are the adjusted Work in Process Inventory, Finished Goods Inventory and Cost of Goods Sold account balances for 2017? (Round % of total to 2 decimal places, e.g. 55.75 and final answers to 0 decimal places, e.g. 5,275.)

Job 3827 was started and completed in 2017. The job required 500 machine hours, 300 direct labor hours, and $75,000 in direct materials to complete. What was the total cost of this job? Using Maverick’s 80% markup, what sales price would be charged for this airplane? (Round answers to 0 decimal places, e.g. 5,275.)
If Maverick had chosen to use machine hours as its overhead application base, what would the rate have been in 2017? (Round answer to 2 decimal places, e.g. 52.75.)

The balances of selected accounts of the Dexter Company on December 31, 2019, are given below: Accounts Receivable $ 850,000 Allowance for Doubtful Accounts (credit) 3,000 Total Sales 9,950,000 Sales Returns and Allowances (total) 240,000 (Credit sales were $8,500,000. Returns and allowances on these sales were $200,000.) Required: Compute the amount to be charged to Uncollectible Accounts Expense under each of the following different assumptions: Uncollectible accounts are estimated to be 0.1 percent of net credit sales. Experience has shown that about 3.3 percent of the accounts receivable will prove worthless. Suppose Allowance for Doubtful Accounts has a debit balance of $2,500 instead of a credit balance of $3,000, but all other account balances remain the same. Compute the amount to be charged to Uncollectible Accounts Expense under each assumption in item 1. Analyze: If you were the owner of Dexter Company and wished to maximize profits reported for 2019, which method would you prefer to use? Complete this question by entering your answers in the tabs below. Req 1aReq 1bReq 2aReq 2bAnalyze Uncollectible accounts are estimated to be 0.1 percent of net credit sales. Compute the amount to be charged to Uncollectible accounts. (Round your ''Estimated loss rate'' to 3 decimal places, i.e. 1.2% should be entered as 0.012.) Credit sales Net credit sales Estimated loss rate Amount to be charged to uncollectible accounts expense Req 1aReq 1b

Melinda and Melissa are partners in a clothing design shop trading as M&M Boutique. They share profits and losses in the ration 2:1.

On 30 June 2017, the statement of financial position was as follows:

Page 8 of 18

On 1 July 2017 the decided to admit Melintha to the partnership on the following conditions: a) Assets should be re-valued as follows:

i. ii. iii. iv. v. vi.

2. b) Melintha will

   premium for good will for her share.

3. c) Melinda and Melissa will share the remaining profits in the ratio 3:2. Melinda and

   Melissa must make cash payments/withdrawals in order to get their capital balances in

   line with their profit-sharing ratio.

4. d) Goodwill should not be disclosed in the statement of financial position after admitting

   Melintha.

You are required to:

1. Calculate the new profit sharing ratio after admission of Melintha on 01 July 2017. ( 4 marks)

2. Provide the journal entries of the transactions above. ( 11 Marks)

3. Prepare the capital accounts of the partners in columnar format.

4. Prepare a statement of financial position of a partnership on 30 June 2017. ( 8 Marks)

5. Discuss in short four reasons for the formation of partnerships ( 4 Marks)

Land & buildings Vehicles Furniture Goodwill Inventory

N$ 360, 000.00 N$ 54, 000.00 N$ 16, 000.00 N$ 120, 000.00 N$ 132, 000.00 N$ 180, 000.00

Trade receivable
obtain 1/5 share of partnership and it was agreed that she would pay a

Page 9 of 18

Several items are omitted from the income statement and cost of goods manufactured statement data for two different companies for the month of December.

Required:

1. Determine the amounts of the missing items, identifying them by letter. Enter all amounts as positive numbers.

2. Prepare On Company's statement of cost of goods manufactured for December.

3. Prepare On Company's income statement for December.

Vernon Company produces two products. Budgeted annual income statements for the two products are provided here:

Required:

1. Based on budgeted sales, determine the relative sales mix between the two products.

2. Determine the weighted-average contribution margin per unit.

3. Calculate the break-even point in total number of units.

4. Determine the number of units of each product Vernon must sell to break even.

5. Verify the break-even point by preparing an income statement for each product as well as an income statement for the combined products.

6. Determine the margin of safety based on the combined sales of the two products.

1. So just like with last week what is the flow, order, of doing things in recording accounting related transactions/entries.
Where do we start and then go from there.....

2.From above describe the pieces, if you say General Ledger, well what is that?

Selected sales and operating data for three divisions of different structural engineering firms are given as follows:

Required:

1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover.

2. Compute the residual income (loss) for each division.

3. Assume that each division is presented with an investment opportunity that would yield a 11% rate of return.

a. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity?

b. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity?

where are the t-accounts charts? that literally the first part to this problem.

The general ledger of Red Storm Cleaners at January 1, 2018, includes the following account balances:

The following is a summary of the transactions for the year:

1. March 12 Provide services to customers, $48,000, of which $19,800 is on account.
2. May 2 Collect on accounts receivable, $16,800.
3. June 30 Issue shares of common stock in exchange for $5,000 cash.
4. August 1 Pay salaries, $24,800 (of which $7,900 is for salaries payable in 2017).
5. September 25 Pay repairs and maintenance expenses, $11,800.
6. October 19 Purchase equipment for $6,800 cash.
7. December 30 Pay $1,000 cash dividends to stockholders.
8. Accrued salaries at year-end amounted to $1,000. Depreciation for the year on the equipment is $3,800. Office supplies remaining on hand at the end of the year equal $1,200.

1. Enter the unadjusted balances from the trial balance and post the adjusting entries to the T-accounts, and post the closing entries to the T-accounts.

Required information

The Foundational 15 [LO2-1, LO2-2, LO2-3, LO2-4]

[The following information applies to the questions displayed below.]

Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departments--Molding and Fabrication. It started, completed, and sold only two jobs during March—Job P and Job Q. The following additional information is available for the company as a whole and for Jobs P and Q (all data and questions relate to the month of March):

Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month.

Required:

For questions 1-8, assume that Sweeten Company uses a plantwide predetermined overhead rate with machine-hours as the allocation base. For questions 9-15, assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments.

Foundational 2-8

8. What was Sweeten Company’s cost of goods sold for March? (Do not round intermediate calculations.)

9. What were the company’s predetermined overhead rates in the Molding Department and the Fabrication Department? (Round your answers to 2 decimal places.)

10. How much manufacturing overhead was applied from the Molding Department to Job P and how much was applied to Job Q? (Do not round intermediate calculations.)

11. How much manufacturing overhead was applied from the Fabrication Department to Job P and how much was applied to Job Q? (Do not round intermediate calculations.)

12. If Job P included 20 units, what was its unit product cost? (Do not round intermediate calculations.)

13. If Job Q included 30 units, what was its unit product cost? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)

14. Assume that Sweeten Company used cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. What selling price would the company have established for Jobs P and Q? What are the selling prices for both jobs when stated on a per unit basis assuming 20 units were produced for Job P and 30 units were produced for Job Q? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)

15. What was Sweeten Company’s cost of goods sold for March? (Do not round intermediate calculations.)

What are some ways that a restaurant chain or other small business can offset the increase in payroll and subsequent decrease in profit as the result of a minimum wage hike? Please explain in discussion format.

The Foundational 15 [LO2-1, LO2-2, LO2-3, LO2-4]

[The following information applies to the questions displayed below.]

Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. The company has two manufacturing departments--Molding and Fabrication. It started, completed, and sold only two jobs during March—Job P and Job Q. The following additional information is available for the company as a whole and for Jobs P and Q (all data and questions relate to the month of March):

Sweeten Company had no underapplied or overapplied manufacturing overhead costs during the month.

Required:

For questions 1-8, assume that Sweeten Company uses a plantwide predetermined overhead rate with machine-hours as the allocation base. For questions 9-15, assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both departments.

1. What was the company’s plantwide predetermined overhead rate? (Round your answer to 2 decimal places.)

2. How much manufacturing overhead was applied to Job P and how much was applied to Job Q? (Do not round intermediate calculations.)

3. What was the total manufacturing cost assigned to Job P? (Do not round intermediate calculations.)

4. If Job P included 20 units, what was its unit product cost? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)

5. What was the total manufacturing cost assigned to Job Q? (Do not round intermediate calculations.)

6. If Job Q included 30 units, what was its unit product cost? (Do not round intermediate calculations. Round your final answer to nearest whole dollar.)

7. Assume that Sweeten Company used cost-plus pricing (and a markup percentage of 80% of total manufacturing cost) to establish selling prices for all of its jobs. What selling price would the company have established for Jobs P and Q? What are the selling prices for both jobs when stated on a per unit basis assuming 20 units were produced for Job P and 30 units were produced for Job Q? (Do not round intermediate calculations. Round your final answers to nearest whole dollar.)

8. What was Sweeten Company’s cost of goods sold for March? (Do not round intermediate calculations.)

Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six months after services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performed. For tax purposes, revenue is reported when fees are collected. Service revenue, collections, and pretax accounting income for 2017–2020 are as follows:

There are no differences between accounting income and taxable income other than the temporary difference described above. The enacted tax rate for each year is 40%.

(Hint: You may find it helpful to prepare a schedule that shows the balances in service revenue receivable at December 31, 2017–2020.)

Required:
1. Prepare the appropriate journal entry to record Alsup's 2018 income taxes, Alsup’s 2019 income taxes and Alsup’s 2020 income taxes. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in thousands.)

•I am assigned a project from my CPA firm. I have to go into a new building and try to find as many pieces of furniture and fixtures from the building as I can. So for example, a door, a drop ceiling, a window, a drinking fountain. I will do this so I can use 7 year depreciation instead of 39 year depreciation. If I find $1,000,000 of things I can argue are fixtures instead of buildings, the client will give me and my CPA firm $50,000 cash bonus.

•I am worried that this might be a violation of ethics. Write a 1-2 page single spaced email to your supervisor about your concerns.

•Find one thing wrong about this in Circular 230, Statement on Tax Standards and AICPA Code of Professional Conduct. They must be different – not all contingent fees, for example. Quote and state the violation within each.

Assume you complete the tax return. Find one possible violation with Code Section 6694 or the related Treasury regulations