1. A company has basic EPS of $29 per share. If the tax rate is 30%, which of the following securities would be dilutive?

1. Cumulative 8%, $50 par preferred stock
2. Ten (10%) percent convertible bonds, with each $1,000 bond convertible into 20 shares of common stock.
3. Seven (7%) percent convertible bonds, with each $1,000 bond convertible into 40 shares of common stock.
4. Six (6%) percent,$100 par cumulative convertible preferred stock with each preferred share convertible into 4 shares of common stock.

1. Rutter Inc. granted (see below for #) stock options to executives and employees on January 1, 2017. The options have a strike price is $10 per share and expire in 2019. The par value of the common stock is $ Using an option pricing model, the company calculates a fair value of $20 per share. The expected service period, or benefit period, is (see below) years.

1. Prepare the journal entries for 2017 and 2018.  

2. In 2019, (see below) % of the options are exercised and the remaining options expire.      

Last Name           # of options granted_      service period       % exercised_______

A – D                    200,000                                     2 years                     20%

E – K                      300,000                                      3 years                     30%

L – S                       250,000                                      2 years                    40%

T – Z                       500,000                                      3 years                   50%

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Red Company purchased a machine on January 1, 2018.

Cost $210,000

Residual value 24,000

Useful life in years 5 *

Useful life in hours 25,000

*Write the formulas assuming useful life in years will always be five years Useful life in hours 25,000 but that the other three amounts given may vary.

Determine the annual depreciation expense under each of four depreciation methods

   Determine the machine's book value at the end of each year under each of the four depreciation methods

Octaone produces luxury water cooler. This is their first year in operation (i.e. starting the year with $0 balances). The company produced 9,000 units (started and completed) and sold 8,000 units for $560,000. Octaone paid $10 per unit in direct materials and $5 per unit in wages for production workers. Lease payments and utilities on the production facilities amounted to $22,500 and selling & administrative expenses were $17,000.

Answer the following questions about Octaone.

A. What is the cost per unit of a water cooler?

B. What is the gross margin per unit of a water cooler?

C. What is the balance in the inventory account before any water coolers were sold?

D. What is the cost of goods sold for the year?

E. What is the cost of inventory on the balance sheet at the end of the year?

F. What is the net income for the year?

Label and place your final answer for A-F at the top of the answer box. Then after the answer to F, label and show your work for each part of the question. Just show me numbers – that is usually enough for me to follow your logic.

14) Fixed costs remain constant at $400,000 per month. During high-output months variable costs are $320,000, and during low-output months variable costs are $80,000. What are the respective high and low indirect-cost rates if budgeted professional labor-hours are 16,000 for high-output months and 4,000 for low-output months?

A) $45.00 per hour; $120.00 per hour

B) $45.00 per hour; $45.00 per hour

C) $25.00 per hour; $20.00 per hour

D) $56.20 per hour; $120.00 per hour

15) Tiscara Company manufactures insulation and applies manufacturing overhead costs to production at a budgeted indirect-cost rate of $15 per direct labor-hour. The following data are obtained from the accounting records for June 2014:

            Direct materials                                                            $440,000

            Direct labor (3,500 hours @ $11/hour)                                38,500

            Indirect labor                                                                   15,000

            Plant facility rent                                                             50,000

            Depreciation on plant machinery and equipment             35,000

            Sales commissions                                                            10,000

            Administrative expenses                                                  25,000

The actual amount of manufacturing overhead costs incurred in June 2014 totals ________.

A) $278,500

B) $100,000

C) $80,000

D) $110,000

Answer the following questions using the information below:

Roiann and Dennett Law Office employs 12 full-time attorneys and 10 paraprofessionals. Direct and indirect costs are applied on a professional labor-hour basis that includes both attorney and paraprofessional hours. Following is information for 2014:

                                                                         Budget              Actual

            Indirect costs                                        $270,000           $300,000

            Annual salary of each attorney             $100,000           $110,000

            Annual salary of each paraprofessional $ 29,000            $ 30,000

            Total professional labor-hours                   50,000 dlh        60,000 dlh

16) What are the actual direct-cost rate and the actual indirect-cost rate, respectively, per professional labor-hour?

A) $27.00; $4.17

B) $29.80; $5.40

C) $32.40; $5.00

D) $27.00; $5.00

17) How much should the client be billed in an actual costing system if 200 professional labor-hours are used?

A) $5,000

B) $6,960

C) $7,480

D) $6,400

Cane Company manufactures two products called Alpha and Beta that sell for $155 and $115, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 110,000 units of each product. Its average cost per unit for each product at this level of activity are given below:

The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars.

11. How many pounds of raw material are needed to make one unit of each of the two products?

12. What contribution margin per pound of raw material is earned by each of the two products? (Round your answers to 2 decimal places.)

Zuniga, Inc. uses a process costing system. During May, 1,200 units were transferred into Department 2 at a cost of $38,040.

Direct materials are added at the beginning of the process.

Additionally:
On May 1:Beginning inventories = 250 units, 40% complete
Direct materials costs = $1,250
Conversion costs = $1,356
Transferred-in costs = $2,560

During May:Direct materials costs incurred = $6,000
Conversion costs incurred = $17,013

On May 31: Ending Inventories = 350 units, 20% complete

Using the weighted average method, what is the cost of the ending work in process inventory? Please show all work

Actuary and trustee reports indicate the following changes in the PBO and plan assets of Douglas-Roberts Industries during 2021:

  
Required:
1-a. Determine Douglas-Roberts's pension expense for 2021.
1-b, 2. to 4. Prepare the appropriate journal entries to record the pension expense, to record any 2021 gains and losses, to record the cash contribution to plan assets and to record retiree benefits.

a)    Complete the table below by classifying the cost items. You need to repeat an amount if it belongs to more than one category. You must provide a total for each column.

b)    Coffee-Culture Ltd manufactures barista quality coffee machines. The unit selling price is $900 and the variable cost per unit is $630. The monthly fixed cost for August 2020 is $27,000. Answer the questions below in the spaces provided. (Show the formula and workings for each)

Required: Answer the following questions in the spaces provided:

a)    Complete the following table by classifying the cost items. You need to repeat an amount if it belongs to more than one category. You must provide a total for each column.

b)    Coffee-Culture Ltd manufactures barista quality coffee machines. The unit selling price is $900 and the variable cost per unit is $630. The monthly fixed cost for August 2020 is $27,000. (Show the formula and workings for each)

1. Calculate the contribution margin per unit.

2. Calculate the contribution margin as a ratio.

3. Calculate the break-even point in units. Calculate the break-even point in sales dollars.

4. Assume that the company sold 120 units of televisions in January 2019. Calculate the margin of safety in dollars.

5. If the target profit for February 2019 is$15,000, calculate the required sales in dollars for February 2019.

Fit & Slim (F&S) is a health club that offers members various gym services.

Required:
1. Assume F&S offers a deal whereby enrolling in a new membership for $1,300 provides a year of unlimited access to facilities and also entitles the member to receive a voucher redeemable for 20% off yoga classes for one year. The yoga classes are offered to gym members as well as to the general public. A new membership normally sells for $1,470, and a one-year enrollment in yoga classes sells for an additional $750. F&S estimates that approximately 40% of the vouchers will be redeemed. F&S offers a 10% discount on all one-year enrollments in classes as part of its normal promotion strategy.
a. & b. Indicate below whether each item is a separate performance obligation. For each separate performance obligation you have indicated, allocate a portion of the contract price.
c. Prepare the journal entry to recognize revenue for the sale of a new membership.
2. Assume F&S offers a “Fit 60” coupon book with 60 prepaid visits over the next year. F&S has learned that Fit 60 purchasers make an average of 50 visits before the coupon book expires. A customer purchases a Fit 60 book by paying $750 in advance, and for any additional visits over 60 during the year after the book is purchased, the customer can pay a $15 visitation fee per visit. F&S typically charges $15 to nonmembers who use the facilities for a single day.
a. & b. Indicate below whether each item is a separate performance obligation. For each separate performance obligation you have indicated, allocate a portion of the contract price.
c. Prepare the journal entry to recognize revenue for the sale of a new Fit 60 book.

Req 1A and 1B

Indicate below whether each item is a separate performance obligation. For each separate performance obligation you have indicated, allocate a portion of the contract price.

Req 1C

• Record the revenue for the sale of a new membership.

Note: Enter debits before credits.

Indicate below whether each item is a separate performance obligation. For each separate performance obligation you have indicated, allocate a portion of the contract price.

Req 2A and 2B

• Record the revenue for the sale of a new Fit 60 book.

Note: Enter debits before credits.

• 
  Record the revenue for the sale of a new Fit 60 book.

Note: Enter debits before credits.

Req 2C

#1. Prepare journal entries to record the December transactions in the General Journal Tab in the excel template file "Accounting Cycle Excel Template.xlsx". Use the following accounts as appropriate: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Equipment, Accumulated Depreciation, Accounts Payable, Wages Payable, Common Stock, Retained Earnings, Dividends, Service Revenue, Depreciation Expense, Wages Expense, Supplies Expense, Rent Expense, and Insurance Expense. 1-Dec Began business by depositing $6500 in a bank account in the name of the company in exchange for 650 shares of $10 per share common stock. 1-Dec Paid the rent for the current month, $550 . 1-Dec Paid the premium on a one-year insurance policy, $600 . 1-Dec Purchased Equipment for $4200 cash. 5-Dec Purchased office supplies from XYZ Company on account, $300 . 15-Dec Provided services to customers for $5600 cash. 16-Dec Provided service to customers ABC Inc. on account, $2800 . 21-Dec Received $1600 cash from ABC Inc., customer on account. 23-Dec Paid $170 to XYZ company for supplies purchased on account on December 5 . 28-Dec Paid wages for the period December 1 through December 28, $4480 . 30-Dec Declared and paid dividend to stockholders $200 . #2. Post all of the December transactions from the “General Journal” tab to the T-accounts under the “T-Accounts” tab in the excel template file "Accounting Cycle Excel Template.xlsx". Assume there are no beginning balances in any of the accounts. #3. Compute the balance for each T-account after all of the entries have been posted. These are the unadjusted balance as of December 31. #4. Prepare the unadjusted trial balance under the “Unadjusted Trial Balance” tab in the excel template file "Accounting Cycle Excel Template.xlsx" . Provide the total of the credit column from the Unadjusted Trial Balance #5. Record the following four transactions as adjusting entries under the “General Journal” tab. 31-Dec One month’s insurance has been used by the company $50. 31-Dec The remaining inventory of unused office supplies is $90. 31-Dec The estimated depreciation on equipment is $70. 31-Dec Wages incurred from December 29 to December 31 but not yet paid or recorded total $480. #6. Post all of the adjusting entries to the T-accounts under the “T-Accounts” tab. Compute the balance for each T-account after all of the adjusting entries have been posted. These are the adjusted balance as of December 31. #7. Prepare the adjusted trial balance under the “Adjusted Trial Balance” tab as of December 31 in the excel template file "Accounting Cycle Excel Template.xlsx" . Provide the following accounts balances from the Adjusted Trial Balance: Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Depreciation Accounts Payable Wages Payable Common Stock Retained Earnings #8. Prepare Income Statement, Statement of Stockholder’s Equity, and Classified Balance Sheet under the “Financial Statements” tab for the month ended December 31, 20XX in the excel template file "Accounting Cycle Excel Template.xlsx". Provide the following amount from the Income Statement: Service Revenue Depreciation Expense Wages Expense Supplies Expense Rent Expense Insurance Expense Net Income Provide the following account balance from the Statement of Stockholders' Equity: Dividends Provide the following account balances from the Balance Sheet: Current Assets Long-Term Assets Total Liabilities Total Stockholder’s Equity Cash #9. Record the closing entries under the “General Journal” tab. #10. Post all of the closing entries to the T-accounts under the “T-Accounts” tab. Compute the balance for each T-account after all of the closing entries have been posted. Provide the ending balance of Cash at December 31 from the T-account Provide the balance of the Retained Earnings T-account after closing entries have been posted. Does the ending balance of the Retained Earnings T-account agree with the balance of Retained Earnings on the Balance Sheet? Check Point: Total Assets $ 9,470.00.

JBeats produce and sell a product that has variable costs of $33 and a selling price of $68 . Its current sales total $204,000 per month. Fixed manufacturing costs total $25,000 per month and fixed selling and administrative costs total $17,000 per month. The company is considering a proposal that will increase the selling price by 5%, increase the fixed manufacturing costs by 5%, and increase the fixed selling and administrative costs by $3,500. A. Compute JBeats’s current break-even point in units. B. Compute JBeats’s margin of safety in dollars. C. Compute JBeats’ss net income. D. Compute JBeats’s breakeven point in units assuming they accept the proposal. E. Compute JBeats’s net income assuming they accept the proposal and sales total 3,300. Label and place your final answer for A-E at the top of the answer box. Then after the answer to E, label and show your work for each part of the question. Just show me numbers – that is usually enough for me to follow your logic.

Hi-Tek Manufacturing, Inc., makes two types of industrial component parts—the B300 and the T500. An absorption costing income statement for the most recent period is shown:

Hi-Tek produced and sold 70,000 units of B300 at a price of $20 per unit and 17,500 units of T500 at a price of $40 per unit. The company’s traditional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labor dollars as the allocation base. Additional information relating to the company’s two product lines is shown below:

The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Tek’s ABC implementation team concluded that $50,000 and $100,000 of the company’s advertising expenses could be directly traced to B300 and T500, respectively. The remainder of the selling and administrative expenses was organization-sustaining in nature. The ABC team also distributed the company’s manufacturing overhead to four activities as shown below:

Required:

1. Compute the product margins for the B300 and T500 under the company’s traditional costing system.

2. Compute the product margins for B300 and T500 under the activity-based costing system.

3. Prepare a quantitative comparison of the traditional and activity-based cost assignments.

7) If direct labor and direct material costs increase by $1 each, contribution margin ________.

A) increases by $20,000

B) increases by $14,000

C) decreases by $24,000

D) decreases by $14,000

Answer the following questions using the information below:

Alex Furniture sells a table for $850. His fixed costs are $25,000, while his variable costs are $500 per table. He currently plans to sell 175 tables this month.

8) What is the budgeted revenue for the month assuming that Alex sells 175 tables?

A) $145,750

B) $148,750

C) $150,000

D) $142,250

9) What is the budgeted operating income for the month assuming that Alex sells 175 tables?

A) $45,250

B) $37,000

C) $36,250

D) $36,750

10) Winnz sells 8,000 units resulting in $100,000 of sales revenue, $35,000 of variable costs, and $45,000 of fixed costs. The contribution margin percentage is ________.

A) 66.67%

B) 65.0%

C) 37.5%

D) 75.0%

11) Winnz sells 8,000 units resulting in $100,000 of sales revenue, $35,000 of variable costs, and $45,000 of fixed costs. To achieve $150,000 in operating income, sales must total ________.

A) $440,000

B) $160,000

C) $130,000

D) $300,000

Answer the following questions using the information below:

Star Jewelry sells 500 units resulting in $75,000 of sales revenue, $28,000 of variable costs, and $18,000 of fixed costs.

12) Breakeven point in units is ________.

A) 196 units

B) 203 units

C) 185 units

D) 192 units

Salmone Company reported the following purchases and sales for its only product. Salmone uses a perpetual inventory system. Determine the cost assigned to cost of goods sold using LIFO.