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

•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

•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

Hazelnut Corp. manufactures lawn ornaments. It currently has two product lines, the basic and the luxury. Hazelnut has a total of $169,007 in overhead.

The company has identified the following information about its overhead activity cost pools and the two product lines:

Required:
1. Suppose Hazelnut used a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line. (Do not round intermediate calculations and round your final answers to the nearest whole dollar amount.)



2. Calculate the activity rates for each cost pool in Hazelnut’s ABC system.



3. Calculate the amount of overhead that Hazelnut will assign to the basic line if it uses an ABC system.



4. Determine the amount of overhead Hazelnut will assign to the luxury line if it uses an ABC system.



5. Compare the results for a traditional system with that of an ABC system. Which do you think is more accurate?

Required information

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

During April, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of these transferred units, 82,000 were in process in the production department at the beginning of April and 328,000 were started and completed in April. April's beginning inventory units were 70% complete with respect to materials and 30% complete with respect to conversion. At the end of April, 104,000 additional units were in process in the production department and were 85% complete with respect to materials and 35% complete with respect to conversion.

The production department had $1,512,630 of direct materials and $991,230 of conversion costs charged to it during April. Also, its beginning inventory of $242,340 consists of $206,850 of direct materials cost and $35,490 of conversion costs.

1&2. Using the weighted-average method, compute the direct materials cost and the conversion cost per equivalent unit and assign April's costs to the department’s output.

1. A new operating system for an existing machine is expected to cost $680,000 and have a useful life of six years. The system yields an incremental after-tax income of $155,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $26,000.
2. A machine costs $530,000, has a $24,200 salvage value, is expected to last eight years, and will generate an after-tax income of $76,000 per year after straight-line depreciation.

Assume the company requires a 10% rate of return on its investments. Compute the net present value of each potential investment. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)

A new operating system for an existing machine is expected to cost $680,000 and have a useful life of six years. The system yields an incremental after-tax income of $155,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $26,000. (Round your answers to the nearest whole dollar.)

A machine costs $530,000, has a $24,200 salvage value, is expected to last eight years, and will generate an after-tax income of $76,000 per year after straight-line depreciation. (Round your answers to the nearest whole dollar.)