Direct Materials Purchases Budget

Lorenzo’s Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12'' and 16'' frozen pizzas for September:

Three direct materials are used in producing the two types of pizza. The quantities of direct materials expected to be used for each pizza are as follows:

In addition, Lorenzo’s has determined the following information about each material:

Prepare September's direct materials purchases budget for Lorenzo’s Frozen Pizza Inc. When required, enter unit prices to the nearest cent.

Schedule of Cash Collections of Accounts Receivable

Furry Friends Supplies Inc., a pet wholesale supplier, was organized on May 1. Projected sales for each of the first three months of operations are as follows:

All sales are on account. 50 percent of sales are expected to be collected in the month of the sale, 39% in the month following the sale, and the remainder in the second month following the sale.

Prepare a schedule indicating cash collections from sales for May, June, and July.

Provide a carefully constructed narrative reply to each of the following requirements. You may consider using internet resources beyond your textbook to gather supporting information. Identify several different career paths that one might consider as an accounting professional.

Define accounting, and define generally accepted accounting principles (GAAP).

Identify several different career paths that one might consider as an accounting professional.

What is ethical behavior, and why is it very important to the accounting profession? What challenges might arise that cause an otherwise "good person" to engage in unethical behavior?

Garcon Inc. manufactures electronic products, with two operating divisions, Consumer and Commercial. Condensed divisional income statements, which involve no intracompany transfers and which include a breakdown of expenses into variable and fixed components, are as follows:

*$150 of the $193 per unit represents materials costs, and the remaining $43 per unit represents other variable conversion expenses incurred within the Commercial Division.

The Consumer Division is presently producing 14,400 units out of a total capacity of 17,280 units. Materials used in producing the Commercial Division’s product are currently purchased from outside suppliers at a price of $150 per unit. The Consumer Division is able to produce the materials used by the Commercial Division. Except for the possible transfer of materials between divisions, no changes are expected in sales and expenses.

Metlock Corporation wishes to exchange a machine used in its operations. Metlock has received the following offers from other companies in the industry.

In addition, Metlock contacted Skysong Corporation, a dealer in machines. To obtain a new machine, Metlock must pay $102,300 in addition to trading in its old machine.

For each of the four independent situations, prepare the journal entries to record the exchange on the books of each company. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

2. Preferential Rates Income: Determine the taxpayer’s income tax liability for 2020 for each of the scenarios.

a. Henrich is married to Sally and their taxable income is $81,000. Included in their taxable income is $1,500 of long-term capital gains.

b. Henrich is married to Sally and their taxable income is $81,000. Included in their taxable income is $10,000 of long-term capital gains.

c. Henrich is single but provides all of the support for his 10 year-old son. His taxable income is $512,000, which includes $16,000 of qualified dividends

Explain/Show your Work

1. Zig Corporation incurs advertising and training costs of $52,500 before its business actually begins. Zig Corporation began business on May 1, 2018. Compute the maximum amount of Zig Corporation’s deduction for start-up costs for 2018.

2. John Porter, the sole shareholder of Canit Inc., incurred the following expenses for the year that were reimbursed by the company:     

Parking tickets incurred while of business                                                $550

Traffic ticket for running a stop sign when going to a business meeting $150

Political contributions on behalf of the company $750                            

What is the amount of expenses that Canit Inc. can deduct?

With the market price of gold at ​C$1,562.50 per ounce​ (C$ stands for Canadian​ dollars), Maritime Resources​ Corp., a Canadian mining​ firm, would like to assess the financial feasibility of reopening an old gold mine that had ceased operations in the past due to low gold prices. Reopening the mine would require an​ up-front capital expenditure of ​C$67.9 million and annual operating expenses of ​C$19.43 million. Maritime expects that over a​ 5-year operating life it can recover 174, 000 ounces of gold from the mine and that the project will have no terminal value. Maritime uses​ straight-line depreciation, has a 21.04​% corporate tax​ rate, and has​ a(n) 11.1​% cost of capital.

a. Calculate the operating cash flows for the gold mine project.

Operating Cash Flows for Gold Mine Project:

Revenue                 $ ________

Operating Expenses _______

EBITS                               _______

Depreciation                     _______

NPBT                               ________

Taxes                                _______

NPAT                                _______

OCF                                  _______

b. Depict on a timeline the net cash flows for the gold mine project.

c. Calculate the internal rate of return​ (IRR) for the gold mine project.

d. Calculate the net present value​ (NPV) for the gold mine project.

e. Make a recommendation to accept or reject the gold mine​ project, and justify your answer.

SHOW ALL WORK/FORMULAS

In order to maintain a modicum of ties to Canada Justin Bieber developed a product called “Blend it like Bieber” a maple and honey blend designed to compete with table syrups, honey, and other honey-like natural sweeteners.

The honey is sourced from a private Bee Farm on the outskirts of Medicine Hat, Alberta from 4th generation bee farmers. The maple syrup comes from a maple syrup production plant in Val-d’Or in the province of Quebec.

Last year was the first year for Blend it like Bieber and had sales of $5,799,000. BILB only sells wholesale and only has two sizes. A price of $3.25 for their 150mL bottle and $6.75 for their 475mL bottle. Sales were nearly even with the 475 mL bottle selling 812,700 units only 3,000 more units than the small bottle. A price change is planned and it is estimated that unit sales will rise.

A. Create a sales budget with the projected units and sales prices for next year.

Use your projected unit sales to create a production budget to answer the question below.

Beginning Inventory Ending Inventory

150mL bottle 120,400 units ???,??? units

475mL bottle 89,200 units ???,??? units

Blend it like Bieber Inc. wants ending inventory to be 25% of sales for the smaller bottles and 15% for the larger bottles

B. Create a production budget for both size bottles based on all the above information.

The “blend” can be broken down into three parts:

Maple: 40%, Honey 10%, Other Additives 50%.

The cost for the parts is as follows

Maple Syrup = $10 / liter

Honey = $17 / liter

Additives = $4 / liter

Liter = 1000 mL

C. Create a Direct Materials Purchases Budget for both size bottles based on all the above information.

D. What is the projected Gross Margin (Sales – COGS) for next year?

) Maddow and Wells, Inc. purchased equity securities in 2018. The management of the company has decided that the securities will not be sold immediately, but will be held for at least three years. This will allow MW to maximize the potential gains from holding the securities. The new accountant at the company wants to classify the securities as held-to-maturity because they will be held for three years; the company has never held securities for this long before. How would you advise the management of the company to classify the securities? At the end of each reporting year, how will the securities be recognized on the company’s books? Support your response with an appropriate ASC reference (ASC xxx-xx-xx-x) or ASU (accounting standard update).

b) Cryptocurrency and Initial Coin Offering are unique investing tools. How does the SEC view these two instruments? Use the SEC’s website to find relevant information about the SEC’s stance on these instruments. Support your discussion with relevant citations from the SEC.

All things equal, which would be superior: variable or absorption costing?

If you were take away the pros and cons of both the variable costing and absorption costing and look at them for their face value, which system would be the better of the two? Realistically I know that that is not possible and I do understand that absorption costing and variable costing each have their own purposes and uses; however, from the standpoint of a company I am trying to understand the practicality of absorption versus variable costing (if both are considered to be equal).

What I mean by that exactly is, I see (and favor) variable costing as a way of being able to more quickly assist management in making their decisions in regard to a specific product's profitability. The expenses are broken out into line items and (to me) it's much more clear on the various expenses going into a certain product. For example, if there were to be a material change, which also decreased the amount of direct labor and as result the per unit price were to decrease, those changes are able to be easily identified rather than just being all lumped together in one line item.

With absorption costing, I see it more as summary and I think that the long-term decisions could be hindered or made incorrectly.

Assume a leesee leases equipment and insists on terms that qualify it as an operating lease, barely escaping the qualification as a capital lease. Discuss the impact that such an operating lease has on financial statements and related financial information as compared to the effect that a capital lease would have.
need help.Thanks

This year, Sigma Inc. generated $633,000 income from its routine business operations. In addition, the corporation sold the following assets, all of which were held for more than 12 months.

*Through date of sale.

1. Compute Sigma’s taxable income assuming that it used the straight-line method to calculate depreciation on the building and has no nonrecaptured Section 1231 losses.
2. Recompute taxable income assuming that Sigma sold the securities for $186,400 rather than $85,250.

ructions

Red Line Railroad Inc. has three regional divisions organized as profit centers. The chief executive officer (CEO) evaluates divisional performance, using income from operations as a percent of revenues. The following quarterly income and expense accounts were provided from the trial balance as of December 31:

The company operates three service departments: Shareholder Relations, Customer Support, and Legal. The Shareholder Relations Department conducts a variety of services for shareholders of the company. The Customer Support Department is the company’s point of contact for new service, complaints, and requests for repair. The department believes that the number of customer contacts is an activity base for this work. The Legal Department provides legal services for division management. The department believes that the number of hours billed is an activity base for this work. The following additional information has been gathered:

You are a public accountant with many small business clients. During a recent visit to a client’s business, the bookkeeper approached you with a problem. The columns of the trial balance were not equal. You helped the bookkeeper find and correct the error, but believe you should go one step further.

Requirement: Write a memo to all of your clients that explains (a) the purpose of the double-entry framework, (b) the importance of maintaining the equality of the accounting equation, (c) the errors that might cause an inequality, and (d) suggestions for finding the errors.

The document should be in a memo format, 12-font Times New Roman, and be between 500-750 words.