St. Germaine Company manufactures car seats in its Albany plant. Each car seat passes through the assembly department and testing department. This problem focuses on the testing department. Direct materials are added when the testing department process is 95% complete. Conversion costs are added evenly during the testing​ department's process. As work in assembly is​ completed, each unit is immediately transferred to testing. As each unit is completed in​ testing, it is immediately transferred to Finished Goods. St. Germaine Company uses the​ weighted-average method of process costing. Data for the testing department for October 2017 are as​ follows:

a.) Degree of​ completion: transferred-in​ costs, ?%; direct​ materials, ?%; conversion​ costs, 65​%.

b.) Degree of​ completion: transferred-in​ costs, ?%; direct​ materials, ?%; conversion​ costs, 45​%.

Questions:

1.) What is the percentage of completion for​ (a) transferred-in costs and direct materials in beginning​ work-in-process inventory and​ (b) transferred-in costs and direct materials in ending​ work-in-process inventory?

2.) For each cost​ category, compute equivalent units in the testing department. Show physical units in the first column of your schedule.

3.) For each cost​ category, summarize total testing department costs for October 2017​, calculate the cost per equivalent​ unit, and assign costs to units completed​ (and transferred​out) and to units in ending work in process.

4.) Prepare journal entries for October transfers from the assembly department to the testing department and from the testing department to Finished Goods.

A value stream has three activities and two products. The units produced and shipped per week are 50 of the deluxe model (Model A) and 150 of the basic model (Model B). The resource consumption patterns are shown as follows:

Required:

1. Calculate the ABC product cost for Models A and B. If required, round your answers to the nearest cent.

2. Calculate the value-stream average product cost. If required, round your answer to the nearest cent.
$ per unit

Assuming reasonable stability in the consumption patterns of the products and product mix, assess how well the products are grouped based on similarity.

- Select your answer -The two value-stream products are similarThe two value-stream products are not similarNot enough information is given to answer

Star Videos, Inc., produces short musical videos for sale to retail outlets. The company’s balance sheet accounts as of January 1 are given below.

Because the videos differ in length and in complexity of production, the company uses a job-order costing system to determine the cost of each video produced. Studio (manufacturing) overhead is charged to videos on the basis of camera-hours of activity. The company’s predetermined overhead rate for the year ($40 per camera-hour) is based on a cost formula that estimated $280,000 in manufacturing overhead for an estimated allocation base of 7,000 camera-hours. Any underapplied or overapplied overhead is closed to cost of goods sold. The following transactions were recorded for the year:

1. Film, costumes, and similar raw materials purchased on account, $229,000.
2. Film, costumes, and other raw materials issued to production, $230,500 (85% of this material was considered direct to the videos in production, and the other 15% was considered indirect).
3. Utility costs incurred (on account) in the production studio, $92,600.
4. Depreciation recorded on the studio, cameras, and other equipment, $104,400. Three-fourths of this depreciation related to actual production of the videos, and the remainder related to equipment used in marketing and administration.
5. Advertising expense incurred (on account), $143,000.
6. Salaries and wages paid in cash as follows:

7. Prepaid insurance expired during the year, $7,450 (70% related to production of videos, and 30% related to marketing and administrative activities).
8. Miscellaneous marketing and administrative expenses incurred (on account), $13,850.
9. Studio (manufacturing) overhead was applied to videos in production. The company recorded 7,250 camera-hours of activity during the year.
10. Videos that cost $578,000 to produce according to their job cost sheets were transferred to the finished videos warehouse to await sale and shipment.
11. Sales for the year totaled $954,000 and were all on account.
12. The total cost to produce the videos that were sold according to their job cost sheets was $623,910.
13. Collections from customers during the year totaled $904,000.
14. Payments to suppliers on account during the year, $608,000.
15. Underapplied or overapplied overhead $__?__.

Required:

1. Prepare a transaction analysis that records all of the above transactions.

Provide two examples of regular payments and two examples of non-regular payments. In your own words, explain the differences in the statutory withholding requirements between regular and non-regular payments..

Chapman Company obtains 100 percent of Abernethy Company’s stock on January 1, 2017. As of that date, Abernethy has the following trial balance:

During 2017, Abernethy reported net income of $80,000 while declaring and paying dividends of $10,000. During 2018, Abernethy reported net income of $110,000 while declaring and paying dividends of $30,000.

Assume that Chapman Company acquired Abernethy’s common stock for $500,000 in cash. Assume that the equipment and long-term liabilities had fair values of $220,000 and $120,000, respectively, on the acquisition date. Chapman uses the initial value method to account for its investment.

An unmarried couple split with a 50/50 custody agreement stating that every other year the parent may claim the one child as a dependent. One parent makes 80K a year and the other makes 23K a year. Does a custody agreement prevent the lower earner from claiming child tax credit or earned income credit? Explain your answer.

eTextbook and Media

List of Accounts

Compute the cost of the ending inventory under the average-cost method, assuming there are 400 units on hand at the end of the period. (Round answer to 0 decimal places, e.g. 125.)

eTextbook and Media

List of Accounts

beginning inventory, purchases and sales data for the month of august are as follows beginning inventory 10 units @ 25 august 5 sale 5 units august 10 purchase 18 units @ 27 august 12 sale 13 units August 27 purchase 10 units @ 30 assuming the business maintains a perpetual inventory system, calculate the cost of goods sold and Ending inventory using FIFO, LIFO , Weighted Average

This is in response to a reply from one of the tutor's that the question was not listed. Here is the problem as indicated in the textbook:

It is chapter 3, Problem 43 of the cost accounting textbook. The Problem: Sympco Glass manufactures insulated windows. The firm's repair and maintenance (R & M) cost is mixed and varies most directly with machine hours worked. The following data have been gathered from recent operations:

The first column are the month's listed. The second column is machine hours and the third column is R & M cost.

a. Use the high-low method to estimate a cost formula for repairs and maintenance.

b. Use the least squares regression to estimate a cost formula for repairs and maintenance.

c. Does the answer to (a) or (b) provide the better estimate of the relationship between repairs and maintenance costs and machine hours? Why?

The question I have has to do with item (b) of questions 43. In the textbooks solutions, step 8 of 11 shows a table to estimate the least square regression. There are five columns. The table has the months as I provided above in one column.   Machine hours which represents (x) in the second column. The Cost which represents the (y) in the third column. The next column is xy which is a computational column where you multiply column x times column y line by line. The final column is the x squared column. This is where I am having a problem. I do not know how the figures in that column are computed. There is no explanation for that column.

Can you please advise me how that is computed because the of that column which is 36,130,000 I need to plug into the equation which is in step 10 of this problem.

Please advise.

thanks for your help.

Best regards,

Janet Napoletano

Break-even analysis for a service company Rotelco is one of the largest digital wireless service providers in the United States. In a recent year, it had approximately 100 direct subscribers (accounts) that generated revenue of $36,300. Costs and expenses for the year were as follows: Cost of revenue $16,300 Selling, general, and administrative expenses 11,600 Depreciation 4,000 Assume that 60% of the cost of revenue and 30% of the selling, general, and administrative expenses are variable to the number of direct subscribers (accounts). In part (a) and (b), round all interim calculations and final answers to one decimal place. a. What is Rotelco's break-even number of accounts, using the data and assumptions above? Round to the nearest whole number. accounts b. How much revenue per account would be sufficient for Rotelco to break even if the number of accounts remained constant? Round to the nearest dollar. $ per account

Below are three independent situations.
1.   ABC Ltd is a manufacturer of boats and gives warranties at the time of sale to purchasers of its boats. Pursuant to the warranty terms, ABC Ltd undertakes to make good, by repair or replacement, manufacturing defects that become apparent within three years from the date of sale.
2.   ABC Ltd has a number of non-current assets, some of which require, in addition to normal ongoing maintenance, substantial expenditure on major refits/refurbishment at certain intervals or on major components that require replacement at regular intervals.
3.   XYZ Ltd is a listed company that provides food to functional centres that host events such as wedding and engagement parties. After an engagement party held by one of XYZ Ltd’s customers in May 2020, 50 people became ill, possibly as a results of food poisoning from products sold by XYZ Ltd. Legal proceedings were commenced seeking damages from XYZ Ltd. XYZ Ltd disputed liability by claiming that the functional centre was at fault for handling the food incorrectly. Up to the date of 30 June 2020 (financial year-end), XYZ Ltd’s lawyers advise that it was probable that XYZ Ltd would not be found liable.
REQUIRED:
Should a liability in the form of a provision be recorded? Briefly justify your decisions.

how will an increase in bad debt expense affect RNOA?

how will a customer paying off accounts receivable affect RNOA?

Hemming Co. reported the following current-year purchases and sales for its only product.

Required:
Hemming uses a perpetual inventory system.
  
1. Determine the costs assigned to ending inventory and to cost of goods sold using FIFO.
2. Determine the costs assigned to ending inventory and to cost of goods sold using LIFO.
3. Compute the gross margin for FIFO method and LIFO method.

Flexible Budget

In an attempt to improve budgeting, the controller for Meliore, Inc., has developed a flexible budget for overhead costs. Meliore, Inc., makes two types of products, the standard model and the deluxe model. Meliore expects to produce 300,000 units of the standard model and 120,000 units of the deluxe model during the coming year. The standard model requires 0.05 direct labor hour per unit, and the deluxe model requires 0.08. The controller has developed the following cost formulas for each of the four overhead items:

At the end of the year, Meliore, Inc., actually produced 310,000 units of the standard model and 115,000 of the deluxe model. The actual overhead costs incurred were:

Required:

Prepare a performance report for the period. If there is no variance, enter "0" for the amount and select "NA" in the last column.