Rosenthal Company manufactures bowling balls through two processes: Molding and Packaging. In the Molding Department, the urethane, rubber, plastics, and other materials are molded into bowling balls. In the Packaging Department, the balls are placed in cartons and sent to the finished goods warehouse. All materials are entered at the beginning of each process. Labor and manufacturing overhead are incurred uniformly throughout each process. Production and cost data for the Molding Department during June 2020 are presented below.

(a)

Prepare a schedule showing physical units of production.

b) Determine the equivalent units of production for materials and conversion costs

c) Compute the unit costs of production

d) Determine the costs to be assigned to the units transferred out and in process for June

e) Prepare a production cost report for the Molding Department for the month of June

Baden Company has gathered the following information.

(a)

Compute equivalent units of production for materials and for conversion costs.

(b)  

Determine the unit costs of production.

(c)  

Show the assignment of costs to units transferred out and in process.

1. What are the assumptions behind the Pure (Unbiased) Expectations Theory and to what conclusion do those assumptions lead?

2. What is the difference (in words, not numbers) between the Federal Funds market and the market for Discount Window loans?

The Blending Department of Luongo Company has the following cost and production data for the month of April.

Units transferred out totaled  20,740. Ending work in process was  1,220 units that are 100% complete as to materials and 40% complete as to conversion costs.

(a)

Compute the equivalent units of production for (1) materials and (2) conversion costs for the month of April.

(b) Compute the unit costs for the month. (Round unit costs to 0 decimal places, e.g. $25.)

Unit cost for the month

(c) Determine the costs to be assigned to the units transferred out and in ending work in process.

Transferred out$
Work in process
Materials$
Conversion costs
Total costs$

O’Brien Company manufactures and sells one product. The following information pertains to each of the company’s first three years of operations:

During its first year of operations, O’Brien produced 100,000 units and sold 79,000 units. During its second year of operations, it produced 79,000 units and sold 95,000 units. In its third year, O’Brien produced 83,000 units and sold 78,000 units. The selling price of the company’s product is $77 per unit.

Required:

1. Assume the company uses variable costing and a FIFO inventory flow assumption (FIFO means first-in first-out. In other words, it assumes that the oldest units in inventory are sold first):

a. Compute the unit product cost for Year 1, Year 2, and Year 3.

b. Prepare an income statement for Year 1, Year 2, and Year 3.

Perform a present worth (PW)-based evaluation of the two alternatives below using a spreadsheet. The after-tax minimum acceptable rate of return (MARR) is 8% per year, Modified Accelerated Cost Recovery System (MACRS) depreciation applies, and T_e = 40%. The (GI - OE) estimate is made for the first 3 years; it is zero in year 4 when each asset is sold.

The PW for alternative X is determined to be____ $ .

The PW for alternative Y is determined to be____ $ .

Alternative (Click to select)XY is selected.

During the year, Janice invested $10,000 (tax basis and at-risk basis) into XYZ limited partnership (a passive investment). Her share of the limited partnership income for the year was $6,000, and Janice received a $5,000 distribution from XYZ limited partnership.

During the year, Janice also invested $6,000 (tax basis and at-risk basis) into ABC limited partnership (a passive investment). Her share of the limited partnership loss for the year was $7,000, and Janice received a $1,500 distribution from ABC limited partnership.

What will be the net income/loss reported on Schedule 1 line 5 of a 2019 tax return? Will there be a carry forward?

Hello,

Just want to compare.

Thanks,

Denver Cabinets Company (DCC) produces and sells specialty wooden cabinets. Production

is machine-intensive. DCC’s variable costs are direct materials, variable machining costs

and sales commissions. Robert Denver, the owner, is planning production for 2011.

Salespeople are paid a 6% commission on each Colonial or Modern models sold and an 8%

commission on each Distressed model sold. Fixed costs (administrative/selling and

production) total $8,750,000. Annual capacity is 50,000 machine hours which is limited by

the availability of machines. Variable machining costs are $200 per hour.

Type of Wooden Cabinet                                    Annual Demand in Units              Selling Price Per Unit             Direct Material cost per unit         Variable Machining Cost Per Unit

Colonial                                                                       4,000                                                 $3,000                                              $750                                                      $600

Modern                                                                        5,000                                                 $2,100                                              $500                                                      $500

Distressed                                                                  30,000                                                $800                                                $100                                                       $300

a. Calculate the machine hours per unit required to satisfy the estimated demand for

each type of cabinet.

b. Calculate the contribution margin per unit earned from each type of cabinet?

c. Advise Mr. Denver on the most profitable product mix based on these three models.

The company uses a single plantwide factory overhead rate. The budgeted Factory Overhead Costs for the year are $1,400,000 and allocates factory overhead based on direct labor hours. The company plans to make 100,000 shirts and 50,000 pairs of pants. It takes 2 direct labor hours to make a shirt and 3 direct labor hours to make a pair of pants. What are the total number of direct labor hours? What is the single plantwide factory overhead rate?

Answers should be entered as whole numbers with no signs or punctuation

Total direct labor hours:

Single plantwide factory overhead rate per direct labor hour:

How much FOH is allocated to a single shirt:

How much FOH is allocated to a single pair of paints:

What are the two basic methods of accounting for long-term construction contracts? Indicate the circumstances that determine when one or the other of these methods should be used.

What are the major lessor groups? What advantage does a captive have in a leasing agreement? Identify the two recognized lease accounting methods for lessees and distinguish between them

Lance contributed investment property worth $512,500, purchased Five years ago for $210,000 cash, to Cloud Peak LLC in exchange for an 65 percent profits and capital interest in the LLC. Cloud Peak owes $520,000 to its suppliers but has no other debts. a. What is Lance’s tax basis in his LLC interest? b. What is Lance’s holding period in his interest? c. What is Cloud Peak’s basis in the contributed property? d. What is Cloud Peak’s holding period in the contributed property?

Problem 4-1 On January 1, 2011, Perelli Company purchased 90,000 of the 100,000 outstanding shares of common stock of Singer Company as a long-term investment. The purchase price of $4,974,200 was paid in cash. At the purchase date, the balance sheet of Singer Company included the following:

Current assets $2,909,500

Long-term assets 3,887,900

Other assets 756,100

Current liabilities 1,547,800

Common stock, $20 par value 1,996,500

Other contributed capital 1,900,500

Retained earnings 1,605,500

Additional data on Singer Company for the four years following the purchase are:

2011 2012 2013 2014

Net income (loss) $1,984,600 $480,200 ($178,200 ) ($324,300 )

Cash dividends paid, 12/30 499,700   499,700 499,700 499,700

Prepare journal entries under each of the following methods to record the purchase and all investment-related subsequent events on the books of Perelli Company for the four years, assuming that any excess of purchase price over equity acquired was attributable solely to an excess of market over book values of depreciable assets (with a remaining life of 15 years). (Assume straight-line depreciation.)

Perelli uses the complete equity method to account for its investment in Singer. (Round answers to 0 decimal places, e.g. 5,125. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date Account Titles and Explanation Debit Credit

2011 (To record the investment)

(To record dividend income)

(To record equity income (loss))

(To record amortization)

2012 (To record dividend income)

(To record equity income (loss))

(To record amortization)

2013 (To record dividend income)

(To record equity income (loss))

(To record amortization)

2014 (To record dividend income)

(To record equity income (loss))

(To record amortization)