Questions
Goehler, Inc. acquires all of the voting stock of Kenneth, Inc. on January 4, 2017, at...

Goehler, Inc. acquires all of the voting stock of Kenneth, Inc. on January 4, 2017, at an amount in excess of Kenneth's fair value. On that date, Kenneth has equipment with a book value of $90,000 and a fair value of $120,000 (10-year remaining life). Goehler has equipment with a book value of $800,000 and a fair value of $1,200,000 (10-year remaining life). On December 31, 2018, Goehler has equipment with a book value of $975,000 but a fair value of $1,350,000 and Kenneth has equipment with a book value of $105,000 but a fair value of $125,000.

18) If Goehler applies the equity method in accounting for Kenneth, what is the consolidated balance for the Equipment account as of December 31, 2018?

A) $1,104,000.

B) $1,080,000.

C) $1,468,000.

D) $1,475,000.

E) $1,100,000.

19) If Goehler applies the partial equity method in accounting for Kenneth, what is the consolidated balance for the Equipment account as of December 31, 2018?

A) $1,475,000.

B) $1,080,000.

C) $1,468,000.

D) $1,100,000.

E) $1,104,000.

20) If Goehler applies the initial value method in accounting for Kenneth, what is the consolidated balance for the Equipment account as of December 31, 2018?

A) $1,080,000.

B) $1,104,000.

C) $1,475,000.

D) $1,100,000.

E) $1,468,000.

Please show works, Thanks!

In: Accounting

.Our company had the following balances and transactions during the current year related to merchandise inventory....

.Our company had the following balances and transactions during the current year related to merchandise inventory.

Beginning merchandise inventory on January 11 20 units at $70 per unitPurchase on February 14 100 units at $85 per unitSale on August 21 120 units

What would be the company's ending merchandise inventory in dollars on December 31 if the company used perpetual, last in, first out (LIFO) method?

$9,900

$8,500

$8,400

$7,000

2.Our company had the following balances and transactions during the current year related to merchandise inventory.

Beginning merchandise inventory on January 11 20 units at $70 per unitPurchase on February 14 100 units at $85 per unitSale on August 21 120 units

What would be the company's cost of goods sold in dollars on December 31 if the company used perpetual, last in, first out (LIFO) method?

$9,900

$8,500

$8,400

$7,000

3.Our company had the following balances and transactions during the current year related to merchandise inventory.

Beginning merchandise inventory on January 1

120 units at $70 per unit

Purchase on February 14

100 units at $85 per unit

Sale on August 21

150 units

What would be the company's ending merchandise inventory in dollars on December 31 if the company used perpetual, first in, first out (FIFO) method?

$4,900

$5,950

$10,950

$12,000

4.Our company had the following balances and transactions during the current year related to merchandise inventory.

Beginning merchandise inventory on January 1

100 units at $75 per unit

Purchase on February 14

100 units at $80 per unit

Sale on August 21

150 units

What would be the company's cost of goods sold in dollars on December 31 if the company used perpetual, first in, first out (FIFO) method?

$4,000

$3,750

$11,500

$11,750

5.Our company had the following balances and transactions during the current year related to merchandise inventory.

Beginning merchandise inventory on January 1

120 units at $70 per unit

Purchase on February 14

100 units at $85 per unit

Sale on August 21

150 units

What would be the company's ending merchandise inventory in dollars on December 31 if the company used perpetual, weighted average (WA) costing method?

$4,900

$12,000

$11,523

$5,377

6.Our company had the following balances and transactions during the current year related to merchandise inventory.

Beginning merchandise inventory on January 1

100 units at $75 per unit

Purchase on February 14

100 units at $80 per unit

Sale on August 21

150 units

What would be the company's cost of goods sold in dollars on December 31 if the company used perpetual, weighted average (WA) costing method?

$4,000

$3,750

$11,625

$11,750

In: Accounting

1. Within a given distribution channel, the following information is available concerning trade margins and costs....

1. Within a given distribution channel, the following information is available concerning trade margins and costs. A wholesaler has a unit selling price of $230 and a unit cost of $140. The retailer requires a 42% markup on selling price. The manufacturer has unit variable costs of $34. Calculate the wholesaler percent markup on cost. Report your answer as a percentage and round to the nearest percent.

2. Within a given distribution channel, the following information is available concerning trade margins and costs. A wholesaler has a unit selling price of $241 and a unit cost of $115. The retailer requires a 27% markup on selling price. The manufacturer has unit variable costs of $59. Calculate the manufacturer's dollar margin per unit. Round your answer to the nearest dollar.

3. Within a given distribution channel, the following information is available concerning trade margins and costs. A wholesaler has a unit selling price of $820 and a unit cost of $477. The retailer requires a 52% markup on selling price. The manufacturer has unit variable costs of $278. Calculate the manufacturer's percent markup on cost. Report your answer as a percentage and round to the nearest percent.

PLEASE EXPLAIN ALL STEPS

In: Accounting

Vaughn Enterprises is a boutique guitar manufacturer. The company produces both acoustic and electric guitars for...

Vaughn Enterprises is a boutique guitar manufacturer. The company produces both acoustic and electric guitars for rising and established professional musicians. Vanessa Aaron, the company’s sales manager, prepared the following sales forecast for 2018. The forecasted sales prices include a 5% increase in the acoustic guitar price and a 10% increase in the electric guitar price, to cover anticipated increases in raw materials prices.

Sales Price 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Acoustic guitar sales $1,290 200 260 300 310
Electric guitar sales $2,380 390 340 300 370
Each acoustic guitar requires a maple neck blank, which Vaughn purchases for $45. On December 31, 2017, Vaughn had 390 neck blanks in inventory. Spoilage during the production process results in a standard quantity of 1.5 necks per acoustic guitar. Because of recent delivery problems, Vaughn wants to maintain an ending inventory equal to 50% of the following quarter’s production needs. Since the supplier has assured Vaughn that the delivery issues will be resolved by the end of December, Vaughn wants only 390 neck blanks in inventory on December 31, 2018. Prepare the purchases budget for neck blanks for 2018. (Enter "per guitar" value to 1 decimal place, e.g. 3.1. Round all other answers to 0 decimal places, e.g. 153.)
Purchases Budget

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

Annual

                                                                      Budgeted productionBudgeted ending inventoryStandard necks per guitarProduction needsBudgeted purchases (necks)Standard price per neckBeginning inventoryTotal DM required (necks)Budgeted purchases cost

                                                                      Standard necks per guitarBudgeted purchases (necks)Beginning inventoryProduction needsStandard price per neckBudgeted ending inventoryBudgeted purchases costTotal DM required (necks)Budgeted production
                                                                      Budgeted productionBeginning inventoryTotal DM required (necks)Standard price per neckBudgeted ending inventoryBudgeted purchases costBudgeted purchases (necks)Standard necks per guitarProduction needs
                                                                      Budgeted purchases costStandard price per neckTotal DM required (necks)Beginning inventoryProduction needsBudgeted purchases (necks)Standard necks per guitarBudgeted productionBudgeted ending inventory
                                                                      Standard necks per guitarBudgeted purchases (necks)Beginning inventoryProduction needsBudgeted purchases costBudgeted productionBudgeted ending inventoryStandard price per neckTotal DM required (necks)
                                                                      Standard price per neckBudgeted ending inventoryTotal DM required (necks)Standard necks per guitarBudgeted purchases costBudgeted productionProduction needsBeginning inventoryBudgeted purchases (necks)
                                                                      Total DM required (necks)Standard necks per guitarBudgeted purchases (necks)Budgeted productionBudgeted ending inventoryBudgeted purchases costBeginning inventoryProduction needsStandard price per neck
                                                                      Budgeted ending inventoryBudgeted purchases (necks)Production needsStandard price per neckStandard necks per guitarTotal DM required (necks)Beginning inventoryBudgeted purchases costBudgeted production $ $ $ $ $
                                                                      Beginning inventoryTotal DM required (necks)Production needsBudgeted productionStandard price per neckBudgeted ending inventoryStandard necks per guitarBudgeted purchases (necks)Budgeted purchases cost $

In: Accounting

1.) The income statement and the statement of cash flows often paint the same picture of...

1.) The income statement and the statement of cash flows often paint the same picture of the company. True or False

2.) Investing and financing activities for the statement of cash flows may be prepared using the direct method Horizontal analysis compares a financial statement line item in the current year with the same line item in the prior year. True or False

3.) The statement of cash flows is an optional statement. True or False

In: Accounting

The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming...

The production manager of Rordan Corporation has submitted the following quarterly production forecast for the upcoming fiscal year:

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Units to be produced 10,800 8,500 7,100 11,200

Each unit requires 0.25 direct labor-hours, and direct laborers are paid $20.00 per hour.

Required:

1. Prepare the company’s direct labor budget for the upcoming fiscal year. Assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

2. Prepare the company’s direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is not adjusted each quarter. Instead, assume that the company’s direct labor workforce consists of permanent employees who are guaranteed to be paid for at least 2,500 hours of work each quarter. If the number of required direct labor-hours is less than this number, the workers are paid for 2,500 hours anyway. Any hours worked in excess of 2,500 hours in a quarter are paid at the rate of 1.5 times the normal hourly rate for direct labor.

In: Accounting

Plug Products owns 80 percent of the stock of Spark Filter Company, which it acquired at...

Plug Products owns 80 percent of the stock of Spark Filter Company, which it acquired at underlying book value on August 30, 20X6. At that date, the fair value of the noncontrolling interest was equal to 20 percent of the book value of Spark Filter. Summarized trial balance data for the two companies as of December 31, 20X8, are as follows:

Plug Products Spark Filter Company
Debit Credit Debit Credit
Cash and Accounts Receivable $ 165,000 $ 91,000
Inventory 239,000 117,000
Buildings & Equipment (net) 290,000 183,000
Investment in Spark Filter Company 267,200
Cost of Goods Sold 174,000 139,000
Depreciation Expense 45,000 35,000
Current Liabilities $ 226,171 $ 44,571
Common Stock 183,000 86,000
Retained Earnings 452,000 211,000
Sales 273,429 223,429
Income from Spark Filter Company 45,600
Total $ 1,180,200 $ 1,180,200 $ 565,000 $ 565,000


On January 1, 20X8, Plug's inventory contained filters purchased for $76,000 from Spark Filter, which had produced the filters for $56,000. In 20X8, Spark Filter spent $116,000 to produce additional filters, which it sold to Plug for $157,429. By December 31, 20X8, Plug had sold all filters that had been on hand January 1, 20X8, but continued to hold in inventory $47,229 of the 20X8 purchase from

Plug Products owns 80 percent of the stock of Spark Filter Company, which it acquired at underlying book value on August 30, 20X6. At that date, the fair value of the noncontrolling interest was equal to 20 percent of the book value of Spark Filter. Summarized trial balance data for the two companies as of December 31, 20X8, are as follows:

Plug Products Spark Filter Company
Debit Credit Debit Credit
Cash and Accounts Receivable $ 165,000 $ 91,000
Inventory 239,000 117,000
Buildings & Equipment (net) 290,000 183,000
Investment in Spark Filter Company 267,200
Cost of Goods Sold 174,000 139,000
Depreciation Expense 45,000 35,000
Current Liabilities $ 226,171 $ 44,571
Common Stock 183,000 86,000
Retained Earnings 452,000 211,000
Sales 273,429 223,429
Income from Spark Filter Company 45,600
Total $ 1,180,200 $ 1,180,200 $ 565,000 $ 565,000


On January 1, 20X8, Plug's inventory contained filters purchased for $76,000 from Spark Filter, which had produced the filters for $56,000. In 20X8, Spark Filter spent $116,000 to produce additional filters, which it sold to Plug for $157,429. By December 31, 20X8, Plug had sold all filters that had been on hand January 1, 20X8, but continued to hold in inventory $47,229 of the 20X8 purchase from Spark Filter.

Required:
a. Prepare all consolidation entries needed to complete a consolidation worksheet for 20X8. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
  

b. Compute consolidated net income and income assigned to the controlling interest in the 20X8 consolidated income statement.

c. Compute the balance assigned to the noncontrolling interest in the consolidated balance sheet as of December 31, 20X8.

In: Accounting

Robert Shah, a sales representative for Quality Office Supplies Corporation will receive a substantial bonus if...

Robert Shah, a sales representative for Quality Office Supplies Corporation will receive a substantial bonus if he meets his annual sales goal. The company’s recognition point for sales is the day of the shipment. On December 31st, Shah realizes he needs sales of $2000.00 to reach his sales goal and receive the bonus. He call a purchaser for a local insurance company, and asks him to buy $2000.00 worth of paper today. The purchaser says, “but Robert, that’s more than a year’s supply for us.” Shah says, “Buy it today. If you decide it’s too much, you can return however much you want for full credit next month”. The purchaser says “okay, ship it.” The paper shipped on December 31st and was recorded as a sale. On January 15th, the purchaser returns $1750.00 worth of paper for a full credit (approved by Shah) against the bill. Should the shipment at December 31st be recorded as a sale? Discuss the ethics of Shah’s actions.

In: Accounting

The following information applies to the questions displayed below.] Warnerwoods Company uses a perpetual inventory system....

The following information applies to the questions displayed below.]

Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March.

Date Activities Units Acquired at Cost Units Sold at Retail
Mar. 1 Beginning inventory 150 units @ $52.00 per unit
Mar. 5 Purchase 250 units @ $57.00 per unit
Mar. 9 Sales 310 units @ $87.00 per unit
Mar. 18 Purchase 110 units @ $62.00 per unit
Mar. 25 Purchase 200 units @ $64.00 per unit
Mar. 29 Sales 180 units @ $97.00 per unit
Totals 710 units 490 units

4. Compute gross profit earned by the company for each of the four costing methods. For specific identification, the March 9 sale consisted of 90 units from beginning inventory and 220 units from the March 5 purchase; the March 29 sale consisted of 70 units from the March 18 purchase and 110 units from the March 25 purchase. (Round weighted average cost per unit to two decimals and final answers to nearest whole dollar.)


In: Accounting

Splish Company sells one product. Presented below is information for January for Splish Company. Jan. 1...

Splish Company sells one product. Presented below is information for January for Splish Company.

Jan. 1 Inventory 124 units at $4 each
4 Sale 100 units at $8 each
11 Purchase 162 units at $7 each
13 Sale 134 units at $9 each
20 Purchase 151 units at $7 each
27 Sale 96 units at $11 each


Splish uses the FIFO cost flow assumption. All purchases and sales are on account.

Assume Splish uses a perpetual system. Prepare all necessary journal entries. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

choose a transaction date                                                                      Jan. 1Jan. 4Jan. 11Jan. 13Jan. 20Jan. 27Jan. 31

enter an account title to record the sale

enter a debit amount

enter a credit amount

enter an account title to record the sale

enter a debit amount

enter a credit amount

(To record the sale)

enter an account title to record the cost of inventory

enter a debit amount

enter a credit amount

enter an account title to record the cost of inventory

enter a debit amount

enter a credit amount

(To record the cost of inventory)

choose a transaction date                                                                      Jan. 1Jan. 4Jan. 11Jan. 13Jan. 20Jan. 27Jan. 31

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

choose a transaction date                                                                      Jan. 1Jan. 4Jan. 11Jan. 13Jan. 20Jan. 27Jan. 31

enter an account title to record the sale

enter a debit amount

enter a credit amount

enter an account title to record the sale

enter a debit amount

enter a credit amount

(To record the sale)

enter an account title to record the cost of inventory

enter a debit amount

enter a credit amount

enter an account title to record the cost of inventory

enter a debit amount

enter a credit amount

(To record the cost of inventory)

choose a transaction date                                                                      Jan. 1Jan. 4Jan. 11Jan. 13Jan. 20Jan. 27Jan. 31

enter an account title

enter a debit amount

enter a credit amount

enter an account title

enter a debit amount

enter a credit amount

choose a transaction date                                                                      Jan. 1Jan. 4Jan. 11Jan. 13Jan. 20Jan. 27Jan. 31

enter an account title to record the sale

enter a debit amount

enter a credit amount

enter an account title to record the sale

enter a debit amount

enter a credit amount

(To record the sale)

enter an account title to record the cost of inventory

enter a debit amount

enter a credit amount

enter an account title to record the cost of inventory

enter a debit amount

enter a credit amount

(To record the cost of inventory)

eTextbook and Media

List of Accounts

  

  

Compute gross profit using the perpetual system.

Gross profit

$enter gross profit in dollars

show work and explain

In: Accounting

Olin Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The...

Olin Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission of 18% of sales. The forecast income statement for the year ending December 31, 2020, is as follows:

OLIN BEAUTY CORPORATION
Income Statement
Year Ending December 31, 2020
Sales $78,335,000
Cost of goods sold
Variable $36,034,100
Fixed

7,880,000

43,914,100

Gross margin 34,420,900
Selling and marketing expenses
Commissions $14,100,300
Fixed costs

10,084,000

24,184,300

Operating income

$10,236,600

The company is considering hiring its own sales staff to replace the network of agents. It will pay its salespeople a commission of 9% and incur fixed costs of $7,050,150.

Under the current policy of using a network of sales agents, calculate Olin Beauty Corporation’s break-even point in sales dollars for the year 2020.

Break-even point: $

Calculate the company's break-even point in sales dollars for the year 2020 if it hires its own sales force to replace the network of agents. (Round answer to the nearest whole dollar, e.g. 5,275.)

Break-even point: $

In: Accounting

On the basis of the following data for Breach Co. for the current and preceding years...

  1. On the basis of the following data for Breach Co. for the current and preceding years ended December 31, prepare a statement of cash flows using the indirect method. Assume that equipment costing $25,000 was purchased for cash and no long-term assets were sold during the period.

    Stock was issued for cash-3,200 shares at par.
    Net income for the current year was $76,000.
    Cash dividends declared and paid were $13,000.

    Current Year

    Prior Year

    Assets

    Cash

    $ 170,000   

    $74,000   

    Accounts Receivable (net)

    78,000   

    85,000   

    Inventories

    106,500   

    90,000   

    Equipment

    395,000   

    370,000   

    Accumulated Depreciation

    (195,000)   

    (158,000)  

    Total assets

    $ 554,500   

    $461,000   

    Liabilities and stockholders' equity

    Accounts Payable (merchandise creditors)

    $51,000   

    $50,000   

    Taxes Payable

    2,500   

    5,000   

    Common Stock, $10 par

    262,000   

    230,000   

    Retained Earnings

    239,000   

    176,000   

    Total Liabilities and Stockholders' Equity

    $ 554,500   

    $461,000   

    Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.

    Breach Co.
    Statement of Cash Flows
    For Year Ended December 31
    Cash flows from operating activities:
    • Cash paid for dividends
    • Cash paid for purchase of equipment
    • Cash received from sale of common stock
    • Decrease in inventories
    • Net income
    $
    Adjustments to reconcile net income to net cash flow from operating activities:
    • Cash paid for dividends
    • Cash paid for purchase of equipment
    • Cash received from sale of common stock
    • Depreciation
    • Decrease in inventories
    Changes in current operating assets and liabilities:
    • Cash paid for dividends
    • Cash paid for purchase of equipment
    • Cash received from sale of common stock
    • Decrease in accounts receivable
    • Increase in taxes payable
    • Cash paid for dividends
    • Cash paid for purchase of equipment
    • Cash received from sale of common stock
    • Decrease in accounts payable
    • Increase in accounts payable
    • Cash paid for dividends
    • Cash paid for purchase of equipment
    • Cash received from sale of common stock
    • Decrease in inventories
    • Increase in inventories
    • Cash paid for dividends
    • Cash paid for purchase of equipment
    • Cash received from sale of common stock
    • Decrease in taxes payable
    • Increase in taxes payable
    Net cash flow from operating activities $
    Cash flows from investing activities:
    • Cash paid for purchase of equipment
    • Decrease in accounts receivable
    • Decrease in taxes payable
    • Decrease in inventories
    • Depreciation
    $
    Net cash flow used for investing activities
    Cash flows from financing activities:
    • Cash received from sale of common stock
    • Decrease in accounts receivable
    • Decrease in taxes payable
    • Decrease in inventories
    • Depreciation
    $
    • Cash paid for dividends
    • Increase in accounts payable
    • Increase in accounts receivable
    • Increase in inventories
    • Net income
    Net cash flow provided by financing activities
    • Decrease in cash
    • Increase in cash
    $
    Cash at the beginning of the year
    Cash at the end of the year $

In: Accounting

High Country, Inc., produces and sells many recreational products. The company has just opened a new...

High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation: Beginning inventory 0 Units produced 44,000 Units sold 39,000 Selling price per unit $ 80 Selling and administrative expenses: Variable per unit $ 2 Fixed (per month) $ 566,000 Manufacturing costs: Direct materials cost per unit $ 15 Direct labor cost per unit $ 9 Variable manufacturing overhead cost per unit $ 3 Fixed manufacturing overhead cost (per month) $ 748,000 Management is anxious to assess the profitability of the new camp cot during the month of May.

Required: 1. Assume that the company uses absorption costing. a. Determine the unit product cost. b. Prepare an income statement for May.

2. Assume that the company uses variable costing. a. Determine the unit product cost. b. Prepare a contribution format income statement for May.

In: Accounting

Warner Clothing is considering the introduction of a new baseball cap for sales by local vendors....

Warner Clothing is considering the introduction of a new baseball cap for sales by local vendors. The company has collected the following price and cost characteristics:


 


    Sales price$12per unitVariable costs 2per unitFixed costs 40,000per month

Assume that the company plans to sell 6,000 units per month. Consider requirements (b), (c), and (d) independently of each other.


 

What is the impact on operating profit if variable costs per unit decrease by 15 percent? Increase by 30 percent?


 

In: Accounting

You have the following information regarding AJH Company: Sales 25,000 units per year at $45 per...

You have the following information regarding AJH Company:

Sales 25,000 units per year at $45 per unit

Production 30,000 units in 2004

At the beginning of 2004 there was no inventory.

Direct Materials are $12.00 per unit

Direct labor is $10.00 per unit

Variable manufacturing overhead costs are $8.00 per unit

Fixed manufacturing overhead costs are $150,000 per year

Marketing costs are all variable at $3.00 per unit

Administrative costs are all fixed at $75,000 per year

Required:

(a.) Prepare an income statement under absorption costing for 2004

(b.) Prepare an income statement under variable costing for 2004

(c.) Prepare an income statement under throughput costing for 2004.

In: Accounting