Lubricants, Inc., produces a special kind of grease that is widely used by race car drivers. The grease is produced in two processing departments—Refining and Blending. Raw materials are introduced at various points in the Refining Department.

The following incomplete Work in Process account is available for the Refining Department for March:

The March 1 work in process inventory in the Refining Department consists of the following elements: materials, $7,200; direct labor, $4,800; and overhead, $21,200.

Costs incurred during March in the Blending Department were: materials used, $46,000; direct labor, $17,100; and overhead cost applied to production, $103,000.

Required:

1. Prepare journal entries to record the costs incurred in both the Refining Department and Blending Department during March. Key your entries to the items (a) through (g) below.

1. Raw materials used in production.
2. Direct labor costs incurred.
3. Manufacturing overhead costs incurred for the entire factory, $676,000. (Credit Accounts Payable.)
4. Manufacturing overhead was applied to production using a predetermined overhead rate.
5. Units that were complete with respect to processing in the Refining Department were transferred to the Blending Department, $642,000.
6. Units that were complete with respect to processing in the Blending Department were transferred to Finished Goods, $800,000.
7. Completed units were sold on account, $1,360,000. The Cost of Goods Sold was $620,000.

2. Post the journal entries from (1) above to T-accounts. The following account balances existed at the beginning of March. (The beginning balance in the Refining Department’s Work in Process is given in the T-account shown above.)

Weston Products manufactures an industrial cleaning compound that goes through three processing departments—Grinding, Mixing, and Cooking. All raw materials are introduced at the start of work in the Grinding Department. The Work in Process T-account for the Grinding Department for May is given below:

The May 1 work in process inventory consisted of 108,000 pounds with $171,720 in materials cost and $114,480 in conversion cost. The May 1 work in process inventory was 100% complete with respect to materials and 30% complete with respect to conversion. During May, 305,000 pounds were started into production. The May 31 inventory consisted of 117,000 pounds that were 100% complete with respect to materials and 70% complete with respect to conversion. The company uses the weighted-average method in its process costing system.

Required:

1. Compute the Grinding Department's equivalent units of production for materials and conversion in May.

2. Compute the Grinding Department's costs per equivalent unit for materials and conversion for May.

3. Compute the Grinding Department's cost of ending work in process inventory for materials, conversion, and in total for May.

4. Compute the Grinding Department's cost of units transferred out to the Mixing Department for materials, conversion, and in total for May.

Builder Products, Inc., uses the weighted-average method in its process costing system. It manufactures a caulking compound that goes through three processing stages prior to completion. Information on work in the first department, Cooking, is given below for May:

Required:

1. Compute the equivalent units of production for materials and conversion for May.

2. Compute the cost per equivalent unit for materials and conversion for May.

3. Compute the cost of ending work in process inventory for materials, conversion, and in total for May.

4. Compute the cost of units transferred out to the next department for materials, conversion, and in total for May.

5. Prepare a cost reconciliation report for May.

Ivanhoe Company had $177,900 of net income in 2019 when the selling price per unit was $154, the variable costs per unit were $98, and the fixed costs were $572,500. Management expects per unit data and total fixed costs to remain the same in 2020. The president of Ivanhoe Company is under pressure from stockholders to increase net income by $93,800 in 2020.

Compute the number of units sold in 2019.

Compute the number of units that would have to be sold in 2020 to reach the stockholders’ desired profit level.

Assume that Ivanhoe Company sells the same number of units in 2020 as it did in 2019. What would the selling price have to be in order to reach the stockholders’ desired profit level?

Static and Flexible Budgets
Graham Corporation used the following data to evaluate its current operating system. The company sells items for $10 each and used a budgeted selling price of $10 per unit.

a. Prepare the actual income statement, flexible budget, and static budget.

Do not use negative signs with any of your answers below.

For questions b., c., and d., do not use negative signs with your answers. Select either U for Unfavorable or F for Favorable using the drop down box next to each of your variance answers.

b. What is the static-budget variance of revenues?

$Answer

c. What is the flexible budget variance for variable costs?

$Answer

d. What is the flexible budget variance for fixed costs?

$Answer

In 2018, Carson is claimed as a dependent on his parents' tax return. Carson's parents provided most of his support. What is Carson's tax liability for the year in each of the following alternative circumstances? Use 2018 Tax Rate Schedule, Dividends and Capital Gains Tax Rates, Estates and Trusts for reference. for reference.

a. Carson is 17 years old at year-end and earned $14,000 from his summer job and part-time job after school. This was his only source of income.

b. Carson is 23 years old at year-end. He is a full-time student and earned $14,000 from his summer internship and part-time job. He also received $5,000 of qualified dividend income.

Assigning Traceable Fixed Expenses
Selected data for Colony Company, which operates three departments, follow:

During the year, the company's fixed expenses included the following:

Assume that the property tax rate is the same for both inventory and equipment. Using the most causally related bases, prepare a schedule assigning the fixed expenses to the three departments. Hint: Not all fixed expenses are traceable to the three departments. One of these fixed costs should be considered a common cost and not traceable to the departments.

Do not round until your final answer. Round final answer to the nearest whole number.

Why would Category 1 assets be used to fund a pension plan?

Millwight, CPA, is considering various risks in planning the audit of Arro Financial, a securities firm that has recently experienced difficulty due to the global financial crisis. Select from the option list provided whether each factor would most likely increase inherent risk, decrease inherent risk, increase control risk, decrease control risk, or have no effect on risk. Each choice may be used once, more than once, or not at all.

1.     Arro replaced member of the audit committee with an outside board member with significantly more financial experience.

2.     The internal auditor for Arro reports directly to the CFO

3.     Arro was able to increase coverage of their liability insurance by changing the insurance provider

4.     Arro has been operating at a loss, but the turnaround in the economy will result in a profitable year

5.     Arro has settled a significant lawsuit with a customer that had been ongoing for several years.

6.     Arro is in the process of installing a new computer software system that will not be fully operational until the following year. Some of the financial processes have been transferred to the new system, but others have not

7.     Arro has recently engaged in hedging activities by the purchase of derivatives

8.     Arro has adopted a new code of ethical conduct that each employee must read and agree to abide by

9.     Arro's board of directors changed its meeting location from Arro's bank to Arro's facility

10. Arro has received a letter from a federal agency responsible for oversight requesting records of transactions for several significant customer accounts

****PLEASE ONLY ANSWER E AND F**** Rain Gear, Inc., produces rain jackets. The master budget shows the following standards information and indicates the company expected to produce and sell 28,000 units for the year. Variable manufacturing overhead is allocated based on direct labor hours.

Rain Gear actually produced and sold 30,000 units for the year. During the year, the company purchased and used 130,000 yards of material for $429,000. A total of 65,000 labor hours were worked during the year at a cost of $637,000. Variable overhead costs totaled $231,000 for the year.

1. Provide a flexible budget of production costs for the year

Direct materials (30000*4*3)=360000

Direct labor (30000*2*10)= 600000

Variable manufacturing overhead (30000*2*4)= 240000

Total variable production costs= 1200000

2. Calculate the materials price variance and materials quantity variance. Enter your calculations into the table below to present your findings:

3. Calculate the labor rate variance and labor efficiency variance. Enter your calculations into the table below to present your findings:

4. Calculate the variable overhead spending variance and variable overhead efficiency variance. Enter your calculations into the table below to present your findings:

5. Company policy is to investigate all variances greater than 10 percent of the flexible budget amount for each of the three variable production costs: direct materials, direct labor, and variable overhead. Identify which of the six variances calculated in requirements bthrough eshould be investigated.

6. Provide two possible explanations for each variance identified in requirement e.

Cyrus is a tipped employee in Illinois. He is single with one withholding allowance and the minimum cash wage in Illinois is $4.95 per hour for a 40-hour workweek. The tip credit in Illinois is $3.30 per hour (i.e., the minimum wage in Illinois is $8.25 per hour), and tips are not included in overtime calculations. During a one-week period, Cyrus worked 52 hours and earned $180 in tips. What is his gross pay?

Question 2 facts – Joe reconciles his checking account check register to the penny every month with the bank’s statement. After accurately recording all of the transactions that he initiated during the month, his check registered showed a balance in his checking account of $1,900 as of the end of the month. When he received his bank statement for the month, he noted for the first time the following as of the end of the month: outstanding checks - $300; service charge for safe deposit box - $25; interest earned on the account - $1; unrecorded (by Joe) automatic electronic funds transfers for his monthly car insurance - $75; Joe’s check #1162, which he correctly wrote for $20, actually cleared his bank account for $200 (he called the bank immediately!) and the bank’s statement balance of $1,921.

Question 2 (8 points) – What should Joe’s check register show as the correct account balance in his checking account as of the end of the month?

Design an interview plan for an accounting job: This plan will describe every aspect of preparing and conducting the interviews for this job opening. It should be at least 1 page in length and cover everything from developing the interview questions to the room set up for the interviews. Think about who, what, why, when, where, and how. You need to describe how you will prepare and conduct the interviews in addition to giving a sample (no more than 5) of the questions you will ask.

On January 1, 2018, Whittington Stoves issued $810 million of its 10% bonds for $746 million. The bonds were priced to yield 12%. Interest is payable semiannually on June 30 and December 31. Whittington records interest at the effective rate and elected the option to report these bonds at their fair value. One million dollars of the increase in fair value was due to a change in the general (risk-free) rate of interest. On December 31, 2018, the fair value of the bonds was $762 million as determined by their market value on the NYSE.

Required:
1. Prepare the journal entry to record interest on June 30, 2018 (the first interest payment).
2. Prepare the journal entry to record interest on December 31, 2018 (the second interest payment).
3. Prepare the journal entry to adjust the bonds to their fair value for presentation in the December 31, 2018, balance sheet.