One of your audit clients approaches you about doing some additional work for the company. Some of the things that the client needs your firm’s help with include:
Financial projections that includes the acquisition of a failing company.
Preparation of forecasted financial statements for a bank loan.
You are excited to be able to present this new opportunity to the partners of the firm, but there are several factors the firm must consider.
Assume your firm decides to provide these services for the client. Discuss communications that must be made to the client regarding their understanding of the nature of the new engagement. Prepare a PowerPoint presentation to present to the partners discussing these concerns that the firm may have regarding the acceptance of this new engagement.
Your presentation should meet the following criteria:
Be 6-8 slides in length, not including the title and references slides.
In: Accounting
1
Which of the following entries records the withdrawal of cash for personal use by D. Bill, the owner of a business?
a.Debit Cash and credit Salary Expense
b.Debit Cash and credit D. Bill, Drawing
c.Debit D. Bill, Drawing and credit Cash
d.Debit Salary Expense and credit Cash
e.None of these choices are correct.
2
A purchase of supplies on account should be recorded as
a.a debit to Supplies and a credit to Cash.
b.a debit to Supplies and a credit to Accounts Payable.
c.a debit to Accounts Payable and a credit to Supplies.
d.a debit to Supplies Expense and a credit to Accounts Receivable.
e.None of these choices are correct.
3
The order the financial statements are prepared is as follows:
a.statement of owner's equity, income statement, balance sheet
b.balance sheet, income statement, statement of owner's equity
c.income statement, statement of owner's equity, balance sheet
d.income statement, balance sheet, statement of owner's equity
4
R. Davis Company has the following accounts and balances at the
end of the year:
Cash, $1,200
Accounts Receivable, $280
Office Equipment, $3,000
Accounts Payable, $1,400
Income from Services, $3,500
Rent Expense, $670
Salaries Expense, $1,000
R. Davis, Capital at the beginning of the year was $2,050. Rob
Davis also withdrew $800 from the company during the year. What is
the amount of total assets reported on the balance sheet?
a.$3,080
b.$9,800
c.$4,480
d.$1,480
5
Jackson Company received cash on account from customers, $2,300. The accountant would record a
a.credit to income from services, $2,300.
b.debit to income from services, $2,300.
c.credit to accounts receivable, $2,300.
d.credit to cash, $2,300.
e.debit to accounts receivable, $2,300
6
Rent Expense is reported on which financial statement?
a.statement of owner's equity
b.balance sheet
c.income statement
d.None of these listed answers are correct.
7
A credit may result in
a.an increase in a revenue account.
b.an increase in a liability account.
c.an increase in the Capital account.
d.a decrease in an asset account.
e.All of these choices are correct.
8
Errors can occur for which of the following reason(s)?
a.Recording only half an entry
b.Recording two debits and no credits
c.Recording incorrect amounts
d.Arithmetic
e.All of these listed answers are correct.
In: Accounting
AP9.3 Anna has the task of designing the audit program for the payroll area. There have been no recent changes to the payroll system or to its interface with the general ledger. Among other tests, Anna is considering using the following substantive analytical procedures to gather evidence:
1. Compare payroll tax expenses (such as state and federal unemployment taxes) to the annual payroll multiplied by the statutory tax rates.
2. Compare the relationship between direct labor costs and number of employees with prior periods.
Required
Evaluate the persuasiveness of the evidence obtained from each substantive analytical procedure.
In: Accounting
PLEASE MAKE SURE ALL THE NUMBERS ARE CORRECT.
After the success of the company’s first two months, Santana Rey continues to operate Business Solutions. The November 30, 2018, unadjusted trial balance of Business Solutions (reflecting its transactions for October and November of 2018) follows.
| No. | Account Title | Debit | Credit | |||
| 101 | Cash | $ | 39,164 | |||
| 106 | Accounts receivable | 13,118 | ||||
| 126 | Computer supplies | 2,645 | ||||
| 128 | Prepaid insurance | 1,980 | ||||
| 131 | Prepaid rent | 2,960 | ||||
| 163 | Office equipment | 8,900 | ||||
| 164 | Accumulated depreciation—Office equipment | $ | 0 | |||
| 167 | Computer equipment | 22,400 | ||||
| 168 | Accumulated depreciation—Computer equipment | 0 | ||||
| 201 | Accounts payable | 0 | ||||
| 210 | Wages payable | 0 | ||||
| 236 | Unearned computer services revenue | 0 | ||||
| 307 | Common stock | 71,000 | ||||
| 318 | Retained earnings | 0 | ||||
| 319 | Dividends | 6,400 | ||||
| 403 | Computer services revenue | 32,094 | ||||
| 612 | Depreciation expense—Office equipment | 0 | ||||
| 613 | Depreciation expense—Computer equipment | 0 | ||||
| 623 | Wages expense | 2,200 | ||||
| 637 | Insurance expense | 0 | ||||
| 640 | Rent expense | 0 | ||||
| 652 | Computer supplies expense | 0 | ||||
| 655 | Advertising expense | 1,688 | ||||
| 676 | Mileage expense | 684 | ||||
| 677 | Miscellaneous expenses | 160 | ||||
| 684 | Repairs expense—Computer | 795 | ||||
| Totals | $ | 103,094 | $ | 103,094 | ||
Business Solutions had the following transactions and events in December 2018.
| Dec. | 2 | Paid $935 cash to Hillside Mall for Business Solutions’ share of mall advertising costs. | |
| 3 | Paid $440 cash for minor repairs to the company’s computer. | ||
| 4 | Received $4,950 cash from Alex’s Engineering Co. for the receivable from November. | ||
| 10 | Paid cash to Lyn Addie for six days of work at the rate of $105 per day. | ||
| 14 | Notified by Alex’s Engineering Co. that Business Solutions’ bid of $7,900 on a proposed project has been accepted. Alex’s paid a $2,100 cash advance to Business Solutions. | ||
| 15 | Purchased $1,400 of computer supplies on credit from Harris Office Products. | ||
| 16 | Sent a reminder to Gomez Co. to pay the fee for services recorded on November 8. | ||
| 20 | Completed a project for Liu Corporation and received $5,925 cash. | ||
| 22–26 | Took the week off for the holidays. | ||
| 28 | Received $3,400 cash from Gomez Co. on its receivable. | ||
| 29 | Reimbursed S. Rey for business automobile mileage (600 miles at $0.24 per mile). | ||
| 31 | The company paid $1,500 cash in dividends. | ||
The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company’s first three months:
a. The December 31 inventory count of computer supplies shows $610 still available.
b. Three months have expired since the 12-month insurance premium was paid in advance.
c. As of December 31, Lyn Addie has not been paid for four days of work at $105 per day.
d. The computer system, acquired on October 1, is expected to have a four-year life with no salvage value.
e. The office equipment, acquired on October 1, is expected to have a five-year life with no salvage value.
f. Three of the four months' prepaid rent have expired.
Required:
1. Prepare journal entries to record each of the
December transactions and events for Business Solutions.
2-a. Prepare adjusting entries to reflect
a through f.
2-b. Post the journal entries to record each of
the December transactions, adjusting entries to the accounts in the
ledger.
3. Prepare an adjusted trial balance as of
December 31, 2018.
4. Prepare an income statement for the three
months ended December 31, 2018.
5. Prepare a statement of retained earnings for
the three months ended December 31, 2018.
6. Prepare a balance sheet as of December 31,
2018.
7. Record and post the necessary closing entries
as of December 31, 2018.
8. Prepare a post-closing trial balance as of
December 31, 2018.
In: Accounting
1. Cameron gave the following gifts to her niece, Jill and nephew, Jack:
$10,000 to Jill and $10,000 to Jack in 2016
$15,000 to Jill and $20,000 to Jack in 2017
$25,000 to Jill and $25,000 to Jack in 2018
The annual exclusion for 2016 & 2017 is $14,000 and for 2018 is $15,000; the lifetime estate and gift tax basic exclusion amount is 2016 in $5,450,000; 2017 in $5,490,000, and 2018 in 11,180,000. Calculate the value of the gift tax using the table below.
|
GIFT TAX CALCULATION |
|
|
1. Total Current Year Gifts |
|
|
2. Less Annual Exclusion |
|
|
3. Total Current Year Taxable Gifts |
|
|
4. Plus Taxable Gifts from Prior Years |
|
|
5. Total Taxable Gifts |
|
|
6. Tax on Total Taxable Gifts |
|
|
7. Tax on Prior Gifts |
|
|
8. Balance |
|
|
9. Applicable Credit |
|
|
10. Applicable Credit Against Tax for all Prior Periods |
|
|
11. Balance (subtract 10 from 9) |
|
|
12. Applicable Credit (smaller of 8 or 11) |
|
|
13. Total Gift tax (8 minus 12) |
|
In: Accounting
Required information
[The following information applies to the questions displayed below.]
During the current year, Ron and Anne sold the following assets: (Use the dividends and capital gains tax rates and tax rate schedules.)
| Capital Asset | Market Value | Tax Basis | Holding Period | ||
| L stock | $ | 54,800 | $ | 43,400 | > 1 year |
| M stock | 32,800 | 41,400 | > 1 year | ||
| N stock | 34,800 | 24,400 | < 1 year | ||
| O stock | 30,800 | 35,400 | < 1 year | ||
| Antiques | 11,800 | 6,400 | > 1 year | ||
| Rental home | 304,800* | 92,400 | > 1 year | ||
*$30,000 of the gain is 25 percent gain (from accumulated
depreciation on the property).
Ignore the Net Investment Income Tax.
a. Given that Ron and Anne have taxable income of only $24,800 (all ordinary) before considering the tax effect of their asset sales, what is their gross tax liability for 2018 assuming they file a joint return? (Round all your intermediate computations to the nearest whole dollar amount.)
b. Given that Ron and Anne have taxable income
of $404,800 (all ordinary) before considering the tax effect of
their asset sales, what is their gross tax liability for 2018
assuming they file a joint return? (Round all your
intermediate computations to the nearest whole dollar
amount.)
In: Accounting
is the new manager of the materials storeroom for
Parr
Manufacturing.
Mary
has been asked to estimate future monthly purchase costs for part #696, used in two of
Parr's
products.
Mary
has purchase cost and quantity data for the past 9 months as follows:
Month
Cost of Purchase
Quantity Purchased
January
$12,675
2,720 parts
February
12,110
2,820
March
17,426
4,095
April
15,825
3,724
May
13,025
2,912
June
14,022
3,321
July
15,290
3,688
August
10,094
2,262
September
14,970
3,552
Estimated monthly purchases for this part based on expected demand of the two products for the rest of the year are as follows:
|
Month |
Purchase Quantity Expected |
|
October |
3,310 parts |
|---|---|
|
November |
3,750 |
|
December |
3,040 |
|
1. |
The computer in
Mary's office is down, andMary has been asked to immediately provide an equation to estimate the future purchase cost for part #696.Mary grabs a calculator and uses the high-low method to estimate a cost equation. What equation does she get? |
|
2. |
Using the equation from requirement 1, calculate the future expected purchase costs for each of the last 3 months of the year. |
|
3. |
After a few hours
Mary's computer is fixed.Mary uses the first 9 months of data and regression analysis to estimate the relationship between the quantity purchased and purchase costs of part #696. The regression lineMary obtains is as follows: y =$1,945.9 +3.71X Evaluate the regression line using the criteria of economic plausibility, goodness of fit, and significance of the independent variable. Compare the regression equation to the equation based on the high-low method. Which is a better fit? Why? |
|
4. |
Use the regression results to calculate the expected purchase costs for October, November, and December. Compare the expected purchase costs to the expected purchase costs calculated using the high-low method in requirement 2. Comment on your results. |
In: Accounting
Multiple-step income statement and balance sheet
The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 20Y7:
| Cash | $126,400 | Retained Earnings | $557,100 | |
| Accounts Receivable | 337,000 | Dividends | 75,700 | |
| Inventory | 384,200 | Sales | 4,629,600 | |
| Estimated Returns Inventory | 5,000 | Cost of Goods Sold | 2,677,900 | |
| Office Supplies | 11,900 | Sales Salaries Expense | 753,000 | |
| Prepaid Insurance | 9,200 | Advertising Expense | 207,100 | |
| Office Equipment | 278,200 | Depreciation Expense— Store Equipment |
40,300 |
|
| Accumulated Depreciation— Office Equipment |
189,000 |
Miscellaneous Selling Expense | 17,700 | |
| Store Equipment | 868,300 | Office Salaries Expense | 411,100 | |
| Accumulated Depreciation— Store Equipment |
278,200 |
Rent Expense | 60,700 | |
| Accounts Payable | 192,500 | Depreciation Expense— Office Equipment |
30,400 |
|
| Customer Refunds Payable | 10,000 | Insurance Expense | 18,800 | |
| Salaries Payable | 12,300 | Office Supplies Expense | 11,100 | |
| Note Payable (final payment due 2024) |
405,000 |
Miscellaneous Administrative Exp. | 8,100 | |
| Common Stock | 70,700 | Interest Expense | 12,300 |
Required:
1. Prepare a multiple-step income statement.
| Kanpur Co. Income Statement For the Year Ended June 30, 20Y7 |
|||
|---|---|---|---|
| Sales | $ | ||
| Cost of goods sold | |||
| Gross profit | $ | ||
| Expenses: | |||
| Selling expenses: | |||
| Sales salaries expense | $ | ||
| Advertising expense | |||
| Depreciation expense-store equipment | |||
| Miscellaneous selling expense | |||
| Total selling expenses | $ | ||
| Administrative expenses: | |||
| Office salaries expense | $ | ||
| Rent expense | |||
| Insurance expense | |||
| Depreciation expense-office equipment | |||
| Office supplies expense | |||
| Miscellaneous administrative expense | |||
| Total administrative expenses | |||
| Total operating expenses | |||
| Operating income | $ | ||
| Other revenue and expense: | |||
| Interest expense | |||
| Net income | $ | ||
2. Prepare a statement of stockholders’ equity. Additional common stock of $7,500 was issued during the year ended June 30, 20Y7.
| Kanpur Co. Statement of Stockholders’ Equity For the Year Ended June 30, 20Y7 |
|||
|---|---|---|---|
| Common Stock | Retained Earnings | Total | |
| Balances, July 1, 20Y6 | $ | $ | $ |
| Issued common stock | |||
| Net income | |||
| Dividends | |||
| Balances, June 30, 20Y7 | $ | $ | $ |
3. Prepare a balance sheet, assuming that the current portion of the note payable is $20,250.
| KANPUR CO. Balance Sheet June 30, 20Y7 |
||||||
|---|---|---|---|---|---|---|
| Assets | ||||||
| Current assets: | ||||||
| Cash | $ | |||||
| Accounts receivable | ||||||
| Inventory | ||||||
| Estimated returns inventory | ||||||
| Office supplies | ||||||
| Prepaid insurance | ||||||
| Total current assets | $ | |||||
| Property, plant, and equipment: | ||||||
| Office equipment | $ | |||||
| Accumulated depreciation-office equipment | ||||||
| Book value-office equipment | $ | |||||
| Store equipment | $ | |||||
| Accumulated depreciation-store equipment | ||||||
| Book value-store equipment | ||||||
| Total property, plant, and equipment | ||||||
| Total assets | $ | |||||
| Liabilities | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | |||||
| Salaries payable | ||||||
| Customer refunds payable | ||||||
| Note payable (current portion) | ||||||
| Total current liabilities | $ | |||||
| Long-term liabilities: | ||||||
| Note payable (long-term portion) | ||||||
| Total liabilities | $ | |||||
| Stockholders' equity | ||||||
| Common stock | $ | |||||
| Retained earnings | ||||||
| Total stockholders' equity | ||||||
| Total liabilities and stockholders' equity | $ | |||||
In: Accounting
Imperial Jewelers manufactures and sells a gold bracelet for $404.00. The company’s accounting system says that the unit product cost for this bracelet is $259.00 as shown below:
| Direct materials | $ | 143 | |
| Direct labor | 81 | ||
| Manufacturing overhead | 35 | ||
| Unit product cost | $ | 259 | |
The members of a wedding party have approached Imperial Jewelers about buying 27 of these gold bracelets for the discounted price of $364.00 each. The members of the wedding party would like special filigree applied to the bracelets that would require Imperial Jewelers to buy a special tool for $467 and that would increase the direct materials cost per bracelet by $5. The special tool would have no other use once the special order is completed.
To analyze this special order opportunity, Imperial Jewelers has determined that most of its manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period. However, $6.00 of the overhead is variable with respect to the number of bracelets produced. The company also believes that accepting this order would have no effect on its ability to produce and sell jewelry to other customers. Furthermore, the company could fulfill the wedding party’s order using its existing manufacturing capacity.
Required:
1. What is the financial advantage (disadvantage) of accepting the special order from the wedding party?
2. Should the company accept the special order?
In: Accounting
Required information
PA4-4 Identifying and Preparing Adjusting Journal Entries [LO 4-1, LO 4-2, LO 4-3, LO 4-6]
[The following information applies to the questions displayed below.]
Val’s Hair Emporium operates a hair salon. Its unadjusted trial balance as of December 31, 2018, follows, along with information about selected accounts.
| Account Names | Debit | Credit | Further Information | |||||||
| Cash | $ | 2,800 | As reported on December 31 bank statement. | |||||||
| Supplies | 3,300 | Based on count, only $800 of supplies still exist. | ||||||||
| Prepaid Rent | 3,000 |
This amount was paid November 1 for rent through the end of January. |
||||||||
| Accounts Payable | $ | 1,000 |
This represents the total amount of bills received for supplies and utilities through December 15. Val estimates that the company has received $350 of utility services through December 31 for which it has not yet been billed. |
|||||||
| Salaries and Wages Payable |
0 |
Stylists have not yet been paid $100 for their work on December 31. |
||||||||
| Income Tax Payable | 0 |
The company has paid last year’s income taxes but not this year’s taxes. |
||||||||
| Common Stock | 1,000 | This amount was contributed for common stock in prior years. | ||||||||
| Retained Earnings | 700 | This is the balance reported at the end of last year. | ||||||||
| Service Revenue | 59,500 | Customers pay cash when they receive services. | ||||||||
| Salaries and Wages Expense |
28,100 |
This is the cost of stylist wages through December 30. |
||||||||
| Utilities Expense | 11,200 | This is the cost of utilities through December 15. | ||||||||
| Rent Expense | 10,000 | This year’s rent was $1,000 per month. | ||||||||
| Supplies Expense | 3,800 |
This is the cost of supplies used through November 30. |
||||||||
| Income Tax Expense | 0 | The company has an average tax rate of 30%. | ||||||||
| Totals | $ | 62,200 | $ | 62,200 | ||||||
PA4-4 Part 1
Required:
I have
Revunues
Service Revunue $59,500
Total Revnues 59,500
Expenses
Salaries and wages Expense 28,100
Utilities Expense 11,200
Rent Expense 10,000
Supplies Expense 3800
Income Tax Expense 0
Total Expenses 53,100
Net Income 6400
Now part 2
Name the five pairs of balance sheet and income statement accounts that require adjustment and indicate the amount of adjustment for each pair.
1 Supplies - Supplies Expense Amount $2500
2 Prepaid Rent - Rent Expense $2000
3 Accounts Payable Utilities Expense $350
4 Salaries and wages payable- Salaries and wages expense $100
5 Income tax payable - income tax expense $0
part 3
PA4-4 Part 3
Not sure on this part or how to get income tax payable, any help would be greatly appreciated
PA4-4 Part 4
and this is the end of the question I need to order each one in steps 1,2,3,4 I appreciate the help a lot it will help me learn how to solve this thanks!
In: Accounting
Department S had no work in process at the beginning of the period. It added 11,400 units of direct materials during the period at a cost of $79,800; 8,550 units were completed during the period; and 2,850 units were 40% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. Direct labor was $52,000 and factory overhead was $8,600. The total cost of units completed during the period was
In: Accounting
1. When can a court exercise jurisdiction over a party whose only connection to a state is via the Internet? In other words, when might there by sufficient minimum contacts to give a court jurisdiction over a remote party? For instance, Is a passive website that can be accessed from anywhere enough to establish jurisdiction or is more needed?
2. Why would a corporation prefer to be seen as ethical? To whom does a corporation owe a duty and what if it finds itself subject to conflicting duties?
In: Accounting
Kurtz Fencing Inc. uses a job order cost system. The following data summarize the operations related to production for March, the first month of operations:
| a. Materials purchased on account, $28,610. | |
| b. Materials requisitioned and factory labor used: |
|
Job |
Materials |
Factory Labor |
| 301 | $2,810 | $2,640 |
| 302 | 3,710 | 3,920 |
| 303 | 2,340 | 1,910 |
| 304 | 8,210 | 7,110 |
| 305 | 5,360 | 5,270 |
| 306 | 3,780 | 3,390 |
| For general factory use | 1,060 | 4,040 |
| c. Factory overhead costs incurred on account, $5,710. | |
| d. Depreciation of machinery and equipment, $1,910. | |
| e. The factory overhead rate is $55 per machine hour. Machine hours used: |
| Job | Machine Hours |
| 301 | 24 |
| 302 | 36 |
| 303 | 29 |
| 304 | 73 |
| 305 | 41 |
| 306 | 24 |
| Total | 227 |
| f. Jobs completed: 301, 302, 303 and 305. | |
| g. Jobs were shipped and customers were billed as follows: Job 301, $8,520; Job 302, $10,770; Job 303, $15,650. |
| Required: | |||
| 1. | Journalize the entries to record the summarized operations. Record each item (items a-f) as an individual entry on March 31. Record item g as 2 entries. Refer to the Chart of Accounts for exact wording of account titles. | ||
| 2. | Post the appropriate entries to T accounts for Work in Process and Finished Goods, using the identifying letters as transaction codes. Insert memo account balances as of the end of the month. For grading purposes enter transactions in alphabetical order. Determine the correct ending balance. The ending balance label is provided on the left side of the T account even when the ending balance is a credit. The unused cell on the balance line should be left blank. | ||
| 3. | Prepare a schedule of unfinished jobs to support the balance in the work in process account.* | ||
| 4. | Prepare a schedule of completed jobs on hand to support the
balance in the finished goods account.*
|
Chart of Accounts
| CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Kurtz Fencing Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount Descriptions
| Amount Descriptions | |
| Balance of Work in Process, January 30 | |
| Finished Goods, January 30 (Job 305) | |
| Job No. 301 | |
| Job No. 302 | |
| Job No. 303 | |
| Job No. 304 | |
| Job No. 305 | |
| Job No. 306 |
Journal
1. Journalize the entries to record the summarized operations. Record each item (items a-f) as an individual entry on March 31. Record item g as 2 entries. Refer to the Chart of Accounts for exact wording of account titles.
PAGE 10
JOURNAL
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T Accounts
2. Post the appropriate entries to T accounts for Work in Process and Finished Goods, using the identifying letters as transaction codes. Insert memo account balances as of the end of the month. For grading purposes enter transactions in alphabetical order. Determine the correct ending balance. The ending balance label is provided on the left side of the T account even when the ending balance is a credit. The unused cell on the balance line should be left blank.
| Work in Process | |||
| Bal. | |||
| Finished Goods | |||
| Bal. | |||
Schedule of Unfinished Jobs
3. Prepare a schedule of unfinished jobs to support the balance in the work in process account. Refer to the list of Amount Descriptions for the exact wording of the answer choices for text entries.
|
Kurtz Fencing Inc. |
|
Schedule of Unfinished Jobs |
|
1 |
Job |
Direct Materials |
Direct Labor |
Factory Overhead |
Total |
|
2 |
|||||
|
3 |
|||||
|
4 |
Schedule of Completed Jobs
4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account. Refer to the list of Amount Descriptions for the exact wording of the answer choices for text entries.
|
Kurtz Fencing Inc. |
|
Schedule of Completed Jobs |
|
1 |
Job |
Direct Materials |
Direct Labor |
Factory Overhead |
Total |
|
2 |
In: Accounting
"I think we goofed when we hired that new assistant controller," said Ruth Scarpino, president of Provost Industries. "Just look at this report that he prepared for last month for the Finishing Department. I can’t understand it."
| Finishing Department costs: | |||
| Work in process inventory, April 1,650 units; materials 100% complete; conversion 60% complete | $ | 8,816 | * |
| Costs transferred in during the month from the preceding department, 3,150 units |
37,396 | ||
| Materials cost added during the month | 16,002 | ||
| Conversion costs incurred during the month | 33,120 | ||
| Total departmental costs | $ | 95,334 | |
| Finishing Department costs assigned to: | |||
| Units completed and transferred to finished goods, 4,200 units at $22.700 per unit |
$ | 95,334 | |
| Work in process inventory, April 30, 600 units; materials 0% complete; conversion 40% complete |
0 | ||
| Total departmental costs assigned | $ | 95,334 | |
*Consists of cost transferred in, $4,316; materials cost, $2,100; and conversion cost, $2,400.
"He's struggling to learn our system," replied Frank Harrop, the operations manager. "The problem is that he's been away from process costing for a long time, and it's coming back slowly."
"It's not just the format of his report that I'm concerned about. Look at that $22.700 unit cost that he's come up with for April. Doesn't that seem high to you?" said Ms. Scarpino.
"Yes, it does seem high; but on the other hand, I know we had an increase in materials prices during April, and that may be the explanation," replied Mr. Harrop. "I’ll get someone else to redo this report and then we can see what’s going on."
Provost Industries manufactures a ceramic product that goes through two processing departments—Molding and Finishing. The company uses the weighted-average method in its process costing.
Required:
1-a. Calculate the equivalent units of production.
1-b. Calculate the cost per equivalent unit. (Round your answers to 2 decimal places.)
1-c. How much cost should have been assigned to the ending work in process inventory? (Round your intermediate calculations to 2 decimal places.)
1-d. How much cost should have been assigned to the units completed and transferred to finished goods? (Round your intermediate calculations to 2 decimal places.)
In: Accounting
Prepare a written Executive Summary Report regarding any company, using the information contained in the company’s balance sheet and income statement, the Internet or other resources, answering the following questions.
Company history: When was the company founded? By whom? List other historical facts.
2. Who is the audit firm for the company?
3. What stock exchange is the company listed on? What is their ticker symbol?
4. How much cash and cash equivalents did the company have at the end of its 2 most recent annual reporting periods?
5. What were the company’s total current assets at the end of its 2 most recent annual reporting periods?
In: Accounting