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

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.

A CPA has been asked to audit the financial statements of a publicly held company for the first time. All preliminary verbal discussions and inquiries among the CPA, the company, the predecessor auditor, and all other necessary parties have been com- pleted. The CPA is now preparing an engagement letter.

Recording Transactions (Including Adjusting and Closing Entries), Preparing Financial Statements, and Performing Ratio Analysis Ben and Kelly Perry began operations of their Roof repair company (Perry Roofing, Inc.) on January 1, 2015. The annual reporting period ends December 31. The trial balance on January 1, 2016, was as follows:

Transactions during 2016 follow:

a. Borrowed $28,000 cash on July 1, 2016, signing a one-year, 10 percent note payable.

b. Purchased equipment for $18,000 cash on July 1, 2016.

c. Sold 10,000 additional shares of capital stock for cash at $0.50 market value per share at the beginning of the year.

d. Earned $75,000 in revenues for 2016, including $16,000 on credit and the rest in cash.

e. Incurred remaining expenses of $35,000 for 2016, including $7,000 on credit and the rest paid with cash.

f. Purchased $3,000 of supplies on cash.

g. Collected accounts receivable, $8,000.

h. Paid accounts payable, $11,000.

i. Purchased $10,000 of supplies on account.

j. Received a $3,000 deposit on work to start January 15, 2017.

k. Declared and paid a cash dividend, $10,000.

Data for adjusting entries:

l. Supplies of $9,000 were counted on December 31, 2016.

m. Depreciation for 2016, $2,000.

n. Interest accrued on notes payable (to be computed).

o. Wages earned since the December 24 payroll but not yet paid, $3,000.

p. Income tax expense was $4,000, payable in 2017.

QUESTIONS TO ANSWER:

1. Set up T-accounts for the accounts on the trial balance and enter beginning balances.

2. Prepare journal entries for transactions (a) through (k) and post them to the T-accounts.

3. Journalize and post the adjusting entries (l) through (p).

4. Prepare an income statement (including earnings per share), statement of stockholders' equity, and balance sheet.

5. Identify the type of transaction for (a) through (k) for the statement of cash flows (O for operating, I for investing, F for financing), and the direction and amount of the effect.

6. Journalize and post the closing entry.

7. Compute the following ratios for 2016 and explain what the results suggest about the company:

a. Current ratio

b. Total asset turnover

c. Net profit margin

Select a product with which you are familiar. Describe what types of standard (direct material and direct labor) might be in effect for the product wherever it is produced. For each of these standards, discuss how those standards may become outdated. How frequently would you think the company need to evaluate each of the standards? **Please use different example of the ones we have here

Sailing Voyages Inc. is a company operated by an individual as a summer tourist attraction on the Great Lakes. It operates a sailing schooner offering day cruises for individuals and groups. Over the last few years, the average number of tourists per cruise was 30. The average charge per person for the cruise including group discounts was $100. The company operates from mid-May until mid-September. On average, the ship sails 100 days during this period. ‘The Canadian’ (the name of the schooner) requires a crew of 6, and is captained by the owner of the company. University students with extensive sailing experience have been willing to work on a per diem basis of $100. They are paid only if the ship is cruising. The ship provides non-alcoholic refreshments and a light lunch. These are acquired daily from a local delicatessen and cost, on average, $25 per person. The daily operating expenses fuel and miscellaneous supplies average $50 per cruise. The company has a variety of annual expenses including: maintenance, depreciation, marketing, licenses, etc., totaling approximately $85,000. Required: Prepare an Excel Workbook to answer the following questions in a professional manner. Ensure that you are utilizing Excel features (including links between spreadsheets, formulas, formatting, graphing).

1. Compute the revenue and variable costs for each cruise. Use this to compute the contribution margin per cruise.

2. Compute the number of cruises that ‘Canadian’ must have each year to break-even. Use your knowledge gained in this course to show the different formulas, graphs etc for break-even analysis.

3. The owner expects a total return on capital and remuneration of $125,000. Using the concept of ‘contribution margin’, cost-volume-profit, and target profit calculations, estimate how many cruises the Canadian needs to make to reach this objective. Is this a realistic expectation? Add your thoughts, proposals, and recommendations.

4. Prepare a contribution margin income statement for Sailing Voyages Inc. If the owner wishes to adjust or achieve his income goal, what changes can he make? How can these changes be easily estimated and projected to show how these changes affect net income. Use your imagination, and your knowledge of cost-volume-profit analysis. Highlight your ideas by utilizing the various graphing tools in Excel.

Exercise 5-12 Equivalent Units; Assigning Costs; Cost Reconciliation-Weighted-Average Method [LO5-2, LO5-4, LO5-5]

Superior Micro Products uses the weighted-average method in its process costing system. During January, the Delta Assembly Department completed its processing of 26,200 units and transferred them to the next department. The cost of beginning work in process inventory and the costs added during January amounted to $760,760 in total. The ending work in process inventory in January consisted of 4,000 units, which were 80% complete with respect to materials and 60% complete with respect to labor and overhead. The costs per equivalent unit for the month were as follows:

Required:

1. Compute the equivalent units of materials, labor, and overhead in the ending work in process inventory for the month.

2. Compute the cost of ending work in process inventory for materials, labor, overhead, and in total for January.

3. Compute the cost of the units transferred to the next department for materials, labor, overhead, and in total for January.

4. Prepare a cost reconciliation for January. (Note: You will not be able to break the cost to be accounted for into the cost of beginning work in process inventory and costs added during the month.)

Novak Company’s record of transactions for the month of April was as follows.

Assuming that periodic inventory records are kept in units only, calculate the average-cost per unit. (Round answer to 2 decimal places, e.g. 2.76.)

eTextbook and Media

Assuming that periodic inventory records are kept in units only, compute the inventory at April 30 using LIFO and average-cost. (Round answer to 0 decimal places, e.g. 2,760.)

eTextbook and Media

Assuming that perpetual inventory records are kept in dollars, determine the inventory using (1) FIFO and (2) LIFO. (Round answer to 0 decimal places, e.g. 2,760.)

eTextbook and Media

Compute cost of goods sold assuming periodic inventory procedures and inventory priced at FIFO. (Round answer to 0 decimal places, e.g. 2,760.)

eTextbook and Media

In an inflationary period, which inventory method—FIFO, LIFO, average-cost—will show the highest net income?

show work and explain

OA company recently hired a payroll service provider to process its payroll-that service provider has essentially taken over the payroll function, and payroll represents OA's largest expense. Comment on the following statement: OA's auditors should make certain that the payroll service provider's most recent financial statements are audited, and that the related audit report includes no indication of a weakness in internal control related to processing its own payroll.

Heidi Jara opened Jara's Cleaning Service on July 1, 2017. During July, the following transactions were completed. July  1 Stockholders invested $20,000 cash in the business in exchange for common stock. 1 Purchased used truck for $9,000, paying $4,000 cash and the balance on account. 3 Purchased cleaning supplies for $2,100 on account. 5 Paid $1,800 cash on a 1-year insurance policy effective July 1. 12 Billed customers $4,500 for cleaning services. 18 Paid $1,500 cash on amount owed on truck and $1,400 on amount owed on cleaning supplies. 20 Paid $2,500 cash for employee salaries. 21 Collected $3,400 cash from customers billed on July 12. 25 Billed customers $6,000 for cleaning services. 31 Paid $350 for the monthly gasoline bill for the truck. 31 Paid a $5,600 cash dividend. The chart of accounts for Jara's Cleaning Service contains the following accounts: No. 101 Cash, No. 112 Accounts Receivable, No. 126 Supplies, No. 130 Prepaid Insurance, No. 157 Equipment, No. 158 Accumulated Depreciation—Equipment, No. 201 Accounts Payable, No. 212 Salaries and Wages Payable, No. 311 Common Stock, No. 320 Retained Earnings, No. 332 Dividends, No. 350 Income Summary, No. 400 Service Revenue, No. 631 Supplies Expense, No. 633 Gasoline Expense, No. 711 Depreciation Expense, No. 722 Insurance Expense, and No. 726 Salaries and Wages Expense. Instructions (a) Journalize and post the July transactions using the general journal tab in Excel (b) Prepare a trial balance at July 31 using the trial balance tab in Excel (b) Trial balance $34,700 (c) Journalize and post the following adjusting entries using the general journal for adjustments tab in Excel. Prepare an adjusted trial balance using the adjusted trial balance tab in Excel. 1. Unbilled and uncollected revenue for services performed at July 31 were $2,700. 2. Depreciation on equipment for the month was $500. 3. One-twelfth of the insurance expired. 4. An inventory count shows $600 of cleaning supplies on hand at July 31. 5. Accrued but unpaid employee salaries were $1,000. (c) Adjusted trial balance $38,900 (d) Prepare an income statement and a retained earnings statement for July and a classified balance sheet at July 31, using the financial statements tab in Excel. (d) Net income $7,200 Total assets $26,800 (e) Journalize and post closing entries using the general journal for closing ent tab in Excel. (g) Prepare a post-closing trial balance at July 31 using the post closing trial balance tab in Excel. (g) Post-closing trial balance $27,300

I need help with the income statement after the adjusting entries are made. I am not getting what my professor says i'm suppose to and cant not figure out why.

A citizen group raised funds to establish an endowment for the Eastville City Library. Under the terms of the trust agreement, the principal must be maintained, but the earnings of the fund are to be used to purchase database and periodical subscriptions for the library. A preclosing trial balance of the library permanent fund follows:

Required:
a. Prepare any closing entries necessary at year-end.
b. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the library permanent fund.
c. Prepare a balance sheet for the Library Permanent Fund (Use Assigned to Library for any spendable fund balance).