The following information concerns production in the Baking Department for March. All direct materials are placed in process at the beginning of production.
| ACCOUNT Work in Process—Baking Department | ACCOUNT NO. | ||||||||
| Date | Item | Debit | Credit | Balance | |||||
| Debit | Credit | ||||||||
| Mar. | 1 | Bal., 6,000 units, 2/3 completed | 13,800 | ||||||
| 31 | Direct materials, 108,000 units | 194,400 | 208,200 | ||||||
| 31 | Direct labor | 55,860 | 264,060 | ||||||
| 31 | Factory overhead | 31,420 | 295,480 | ||||||
| 31 | Goods finished, 109,500 units | 284,500 | 10,980 | ||||||
| 31 | Bal. ? units, 4/5 completed | 10,980 | |||||||
a. Based on the above data, determine each cost listed below. Round "cost per equivalent unit" answers to the nearest cent.
| 1. Direct materials cost per equivalent unit | $ |
| 2. Conversion cost per equivalent unit | $ |
| 3. Cost of the beginning work in process completed during March | $ |
| 4. Cost of units started and completed during March | $ |
| 5. Cost of the ending work in process | $ |
b. Assuming that the direct materials cost is
the same for February and March, did the conversion cost per
equivalent unit increase, decrease, or remain the same in
March?
Increase
In: Accounting
Company: Campbell Soup
What inventory costing method does the company use (LIFO/FIFO, etc) in 2018? Do you think it is appropriate?
What are the key raw materials in 2018?
Are there supply or price change risks associated with the raw materials?
In: Accounting
| On January 1 2000 The Patriot Company purchased all of the stock of the Chief Company at book value | ||||||
| Patriot accounts for its investment in Chief using the initial value method and Chief does not pay dividends | ||||||
| On January 1, 2014 Patriot Company issued (sold) $500,000 8% semi-annual bonds for $530,000 | ||||||
| These 20 year bonds pay interest on July 1 and January 1 of each year. Patriot uses straight-line amortization | ||||||
| On January 1, 2019 Chief Company purchased the Patriot bonds for $485000. Chief also uses straight-line | ||||||
| amortization | ||||||
| REQUIRED: | ||||||
| e) make the necessary worksheet entries needed in 2019 | ||||||
| f) In 2019, Patriot reported income of $300,000 (unconsolidated) and Chief reported income | ||||||
| of $25,000. What is consolidated income? | ||||||
| g) make the necessary worksheet entries needed in 2020 | ||||||
| h) in 2020, Patriot reported income of $300,000 (unconsolidated) and Chief reported income | ||||||
| of $25,000. What is consolidated income? | ||||||
In: Accounting
Problem 6-Lump sum issuance of stock.PMP Corporation has issued 4,000 shares of common stock and 300 shares of preferred stock for a lump sum of $100,000 cash.Instructions(round to nearest dollar)
(a)Give the entry for the issuance assuming the par value of the common stock was $5 and thefair value $25, and the par value of the preferred stock was $20 and the fair value $40. (Each valuation is on a per share basis and there are ready markets for each stock.)
(b)Give the entry for the issuance assuming the same facts as (a) above except the commonstock has no ready market and the preferred stock has a fair value of $45per share.
In: Accounting
Complete the following questions. In addition to answering the items below, you must submit an analysis of the assignment. Analyze the specific outcomes and write an analysis directed toward the team at BAJA Corporation describing what the numbers mean and how they relate to the business. Submit journal entries in the Excel file included in the module section and written segments in an MS Word document. For written answers, please make sure your responses are well-written, formatted per CSU-Global Guide to Writing and APA (Links to an external site.)Links to an external site. and have proper citations, where applicable.
On January 1, 2017, BAJA Corporation purchased bonds with a face value of $600,000 for $616,747.06 The bonds are due June 30, 2020, carry a 13% stated interest rate, and were purchased to yield 12%. Interest is payable semiannually on June 30 and December 31. On March 31, 2018, in contemplation of a major acquisition, the company sold one-half the bonds for $319,000 including accrued interest; the remainder were held until maturity.
I understand how to prepare the journal entries and the amortization schedule. I am just curious about how the partial sale on March 31, 2018 affects those entries? Do I have to revise my amortization schedule? It will change the rest of the journal entries as well right?
In: Accounting
Exercise 13-8 Selected Financial Ratios [LO13-2, LO13-3, LO13-4]
|
The financial statements for Castile Products, Inc., are given below: |
| Castile Products, Inc. Balance Sheet December 31 |
||||||
| Assets | ||||||
| Current assets: | ||||||
| Cash | $ | 22,000 | ||||
| Accounts receivable, net | 250,000 | |||||
| Merchandise inventory | 400,000 | |||||
| Prepaid expenses | 9,000 | |||||
| Total current assets | 681,000 | |||||
| Property and equipment, net | 860,000 | |||||
| Total assets | $ | 1,541,000 | ||||
| Liabilities and Stockholders' Equity | ||||||
| Liabilities: | ||||||
| Current liabilities | $ | 230,000 | ||||
| Bonds payable, 11% | 310,000 | |||||
| Total liabilities | 540,000 | |||||
| Stockholders’ equity: | ||||||
| Common stock, $5 par value | $ | 150,000 | ||||
| Retained earnings | 851,000 | |||||
| Total stockholders’ equity | 1,001,000 | |||||
| Total liabilities and equity | $ | 1,541,000 | ||||
| Castile Products, Inc. Income Statement For the Year Ended December 31 |
|||
| Sales | $ | 2,940,000 | |
| Cost of goods sold | 1,384,500 | ||
| Gross margin | 1,555,500 | ||
| Selling and administrative expenses | 600,000 | ||
| Net operating income | 955,500 | ||
| Interest expense | 34,100 | ||
| Net income before taxes | 921,400 | ||
| Income taxes (30%) | 276,420 | ||
| Net income | $ | 644,980 | |
|
Account balances at the beginning of the year were: accounts receivable, $170,000; and inventory, $310,000. All sales were on account. |
| Required: |
| Compute the following financial data and ratios: |
| 1. |
Working capital. |
| 2. | Current ratio. (Round your answer to 2 decimal places.) |
| 3. | Acid-test ratio. (Round your answer to 2 decimal places.) |
| 4. | Debt-to-equity ratio. (Round your answer to 2 decimal places.) |
| 5. | Times interest earned ratio. (Round your answer to 2 decimal places.) |
| 6. | Average collection period. (Use 365 days in a year. Round your answer to 1 decimal place.) |
| 7. | Average sale period. (Use 365 days in a year. Round your intermediate and final answer to 1 decimal place.) |
| 8. |
Operating cycle. (Round your intermediate calculations and final answers to 1 decimal place.) |
In: Accounting
Briefly discuss some of the indicators of an outdated costing system (Word limit: 200 words) b) Despite the obvious advantages of ABC, many firms are still reluctant to implement it. What are the reasons for this reluctance? (Word limit: 150 words)
In: Accounting
Accounting fraud was a hot area and sensitive for the SEC in the early 2000s following a barrage of scandals at companies such as Enron, Worldcom and Parmalat to mention a few. In your opinion what is the significance of Sarbanes-Oxley Act of 2002 in combating accounting fraud in public companies?
In: Accounting
Computing Depreciation Expense.
Equipment costing $810,000, with an expected scrap value of $100,000 and an estimated useful life of six years, was purchased on January 1 of the current year.
Required: Calculate the depreciation expense for the first two years of the asset’s useful life using (a) the straight-line method and (b) the double-declining balance method. Which method would you prefer to use for (a) income tax purposes and (b) financial reporting purposes? Why?
Please show all steps.
In: Accounting
Tec Industries manufactures and sells one product. The following information pertains to each of the company’s first two years of operations:
Variable costs per unit: Manufacturing: Direct Materials $ 35 Direct Labor $ 25 Variable manufacturing overhead $ 7 Variable Selling and administrative $ 5 Fixed costs per year: Fixed manufacturing overhead $ 320,000 Fixed selling and administrative expenses $ 125,000
During its first year of operations, BIA produced 40,000 units and sold 30,000 units. During its second year of operations, BIA produced 40,000 and sold 50,000 units. The selling price of the company’s product is $100 per unit.
2) Assume the company uses Absorption Costing.
a. Compute the unit product cost for Year 1 and Year 2.
b. Prepare an income statement for Year 1 and Year 2 using Absorption Costing.
PLEASE SHOW ALL WORK!!
In: Accounting
The shareholders' equity of Janeek Enterprises includes $253,600 of no par common stock and $532,300 of 5% cumulative preferred stock. The board of directors declared cash dividends of $81,900 in 2016 after paying $23,500 cash dividends in 2015. What is the amount of dividends paid to common shareholders in 2016? ______________________
PLEASE SHOW ALL WORK AND EXPLAIN, THANK YOU
In: Accounting
Tec Industries manufactures and sells one product. The following information pertains to each of the company’s first two years of operations:
Variable costs per unit: Manufacturing: Direct Materials $ 35 Direct Labor $ 25 Variable manufacturing overhead $ 7 Variable Selling and administrative $ 5 Fixed costs per year: Fixed manufacturing overhead $ 320,000 Fixed selling and administrative expenses $ 125,000
During its first year of operations, BIA produced 40,000 units and sold 30,000 units. During its second year of operations, BIA produced 40,000 and sold 50,000 units. The selling price of the company’s product is $100 per unit.
1) Assume the company uses Variable Costing.
a. Compute the unit product cost for Year 1 and Year 2.
b. Prepare an income statement for Year 1 and Year 2 using Variable Costing.
PLEASE SHOW ALL WORK!!
In: Accounting
On January 20X2, Lucky Company purchased $5,000,000 of Fire Corp. 3% bonds, classified as a FVTPL. The bonds pay semi-annual interest each 30 June and 31 December. The market interest rate was 4% o the date of purchase. The bonds mature on 30 December 20X11. At the end of 20X2, the bonds had a fair value of $4,800,000.
1. Calculate the price paid by Lucky.
2. Give entries for the first year assuming that the investment is classified as FVTPL.
In: Accounting
Contribution Margin Concepts
The following information is taken from the 2017 records of
Hendrix's Guitar Center.
| Fixed | Variable | Total | ||
|---|---|---|---|---|
| Sales | $2,250,000 | |||
| Costs | ||||
| Goods sold | 1,012,500 | |||
| Labor | $480,000 | 180,000 | ||
| Supplies | 6,000 | 15,000 | ||
| Utilities | 36,000 | 39,000 | ||
| Rent | 72,000 | 0 | ||
| Advertising | 18,000 | 73,500 | ||
| Miscellaneous | 18,000 | 30,000 | ||
| Total costs | $630,000 | $1,350,000 | (1,980,000) | |
| Net income | $ 270,000 | |||
Required
(a.) Determine the annual break-even dollar sales volume.
Contribution margin ratio: Answer
Annual break-even dollar sales volumes: $Answer
(b.) Determine the current margin of safety in
dollars.
$Answer
(c.) Prepare a cost-volume-profit graph for the guitar shop. Label both axes in dollars with maximum values of $1,000,000. Draw a vertical line on the graph for the current ($750,000) sales level, and label total variable costs, total fixed costs, and total profits at $75,000 sales.
(d.) What is the annual break-even dollar sales volume if
management makes a decision that increases fixed costs by
$100,000?
$Answer
In: Accounting
Patterson Products Inc. is considering an upgrade to its manufacturing equipment. The two upgrade options under consideration are shown below.
| Option 1 | Option 2 | |||
| Direct material cost per unit | $ | 57.6 | $ | 38.4 |
| Direct labour cost per unit | $ | 46 | $ | 39 |
| Variable overhead per unit | $ | 11.6 | $ | 31.4 |
| Fixed manufacturing costs | $ | 2,060,000 | $ | 3,852,000 |
The selling price of the company’s product is $192 per unit with variable selling costs of 10% of sales. Fixed selling and administrative costs are $3,360,000 per year.
There would be no change to the selling price, variable selling costs, or fixed selling and administrative costs as the result of the manufacturing equipment upgrade.
Required:
1. At what annual number of unit sales would Patterson Products Inc. be indifferent between the two upgrade options?
2. If demand falls short of the indifference point calculated in part (1), which option would be preferred?
Option 1
Option 2
3. Calculate the break-even point in unit sales under each upgrade option. (Round your final answers to the nearest whole number.)
In: Accounting