Arensky Company uses normal costing to account for overhead in its job costing system. There are 2 departments in the company: Designing and Machining. The Designing Dept. is labor intensive; the Machining Dept. is machine intensive. (OH= Overhead; DLH= Direct Labor Hours; MH= Machine Hours.) The budget for 2019 is as follows:

Designing   Machining

Est. OH $2,000,000 $5,600,000

Est DLH 40,000 Hours 10,000 Hours

Est MH. 20,000 Hours 70,000 Hours

Actual Results are as follows:

Designing Machining

Actual OH $2,100,000 $5,650,000

Actual DLH 41,500 Hours 11,000 Hours

Actual MH 19,800 Hours 72,000 Hours

A. Using the most logical allocation base, Calculate the OH Allocation rate for each department. Be sure to state your final answer in proper units.

B. For Each Department, Calculate How much OH is Allocated

C. For Each Department, Give the journal entry to record-over or under-allocated overhead

D. Why is Normal Costing Method preferred to the Actual Costing Method.

Each unit requires 0.25 hour of direct labor.

Required:

a. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

c. Determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Create a comparing table for managerial and financial acoounting on the positions you concider the most important. Supply your choice with explanations.

John and Tara Smith are married and have lived in the same home for over 20 years. John's uncle Tim, who is 64 years old, has lived with the Smiths since March of this year. Tim is searching for employment but has been unable to find any—his gross income for the year is $2,000. Tim used all $2,000 toward his own support. The Smiths provided the rest of Tim's support by providing him with lodging valued at $5,000 and food valued at $2,200. Assume the original facts except that Tim earned $10,000 and used all the funds for his own support. Assume the original facts except that Tim is a friend of the family and not John's uncle

Competency

Evaluate the threats and risks associated with accounting information systems.

Scenario Information

BeGood Baking Supply is a small bakery supply company formed as a closely held corporation. The company supplies raw baking materials, paper goods, and equipment to restaurants and bakeries in three states in the upper mid-west. Most of its business, however, is located in a large metropolitan area. BeGood wants to increase its presence in the region and serve five states. In fact, the owners of BeGood would like 75% of their business to come from throughout the region rather than the current metropolitan area. In order to do this, the owners understand they must diversify offerings and lines of business.

Currently, BeGood has a phone center where customer orders are taken; these orders are then sent to shipping where the order is filled in its large warehouse and shipped within four days. BeGood outsources its shipping to a local trucking company. Once the order ships, all paperwork goes to the accounting department where it is entered into the accounting system. BeGood still uses the same accounting system it has used since the inception of the company. All aging of receivables and other analysis is done using Excel spreadsheets. Purchasing and tracking of inventory are done solely by the warehouse manager. Invoices for inventory purchasing are sent to the accounting department when goods are received.

The owners at BeGood are wondering how they can utilize an online presence and further automate its systems in order to facilitate its growth and diversify its business. The owners may also like to expand into the retail business.

You have been hired as a full-time staff accountant at BeGood Baking Supply, and have been given the task of evaluating and recommending a viable accounting information system for the accounting and financial data of BeGood in order to facilitate expansion and diversification. As you begin your research, you realize that many departments are involved in the information system, and communication is key.

Instructions

As part of the BeGood AIS assessment, you must address risks, threats, and controls in compliance with the COSO framework. You know the external auditor will also want this information, so you decide to document it now. In preparation for the company external audit, you prepare the following documentation to assist the audit team in starting their work:

1. Document a new AIS with a flowchart that will address the size and scope of BeGood in its current form.
2. List at least three vulnerabilities and appropriate control measures to manage the vulnerabilities for each function (department) within the flowchart.
3. Devise controls based on threats in a general ledger reporting system.
4. Evaluate at least one security policy or procedure that would minimize threats and risks.

QUESTION 1

The inventory records of Frost Company for the years 2016 and 2017 reveal the cost and market of the January 1, 2016, inventory to be $125,000. On December 31, 2016, the cost of inventory was $130,000, while the market value was only $128,000. The December 31, 2017, market value of inventory was $140,000, and the cost was only $135,000. Frost uses a perpetual inventory system.

general journal

Assume Frost uses the allowance method and a perpetual inventory system.

I wanna know what is different between fixed cost and variable cost what it change and what it cannot be change between them ?

Compare and contrast the constructive receipt doctrine and the assignment of income doctrine.

In what situations do these doctrines apply?

Problem 7-3 (Part Level Submission) Pearl Corporation operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Pearl's Accounts Receivable account was $595,600 and Allowance for Doubtful Accounts had a credit balance of $40,350. The year-end balance reported in the balance sheet for Allowance for Doubtful Accounts will be based on the aging schedule shown below. Days Account Outstanding Amount Probability of Collection Less than 16 days $314,500 0.97 Between 16 and 30 days 119,900 0.90 Between 31 and 45 days 84,800 0.85 Between 46 and 60 days 43,000 0.82 Between 61 and 75 days 19,800 0.53 Over 75 days 13,600 0.00 Assume that accounts with a zero percent chance of collection are intended to be written off. Collapse question part (a) What is the appropriate balance for Allowance for Doubtful Accounts at year-end? Balance for Allowance for Doubtful Accounts

What type of activities does payroll reconciliation include?

(simple and original answer please, no hand writing and answer should relate to Australian payroll system or Australian legislation thx)

Q1. Carter Packaging Company is engaged in the business of producing customized tins for its corporate clients. The manufacturing facility is located in North Hamsphire, Olton.

On March 31, 2018 Boost Drinks Limited ordered 3000 tin cans to be supplied before April 16, 2008. The order is named as Job # 2 & was completed on April 11, 2008 and transferred to the warehouse. On April 14 the goods were shipped to the customer at a total prices of Cost + 25%.

Additional information:

1. Raw material was purchased for $ 13000. Out of this 22% was allocated to Job # 2B

2. Labor costs $9 per hour. Each tin requires 30 minutes to complete.

3. Supervision cost amounted to 400 for Job # 2B.

4. Machine and building depreciation were 1200 and 2000 respectively. 40% is allocated to the job # 2B.

Required:

You are required

1. Prepare a Job Order Cost Sheet for Job # 2B.

2. Pass Necessary Journal entries in the books of Carter Packaging Company

3. Prepare the FOH Control and Work in Process account for the Job # 2B.

Question 1

1-Explain how to calculate the net income for merchandising companies, why is it different than calculating the net income for service companies.

2-Prepare the income Statement for Yazeed merchandising company for December 2015 that has the followings: Sales: 9,000 Sales discount: 6,000 Salaries expenses: 200 Advertising expenses: 400 Sales returns and allowances: 10 Insurance expenses: 50,000 Costs of Goods Sold: 4,000

Reconciliation from IFRS to GAAP

You are the CFO for Mills company (reporting using IFRS) and must reconcile your financial statements for the years ending 2008, 2009, and 2010 to U.S. GAAP (The Income Statement and Statement Stockholders’ Equity). Youhave identified the following 5 areas where there are differences between IFRS and U.S. GAAP at various dates.  Be sure to consider the cumulative effects of prior year transactions for each year.

Intangible Assets

As part of a business combination in January 2004, the company acquired a brand for $15,000,000.  The brand is classified as an intangible asset with a 15 year useful life.  At year-end 2008, the brand is determined to have a selling price of $8,000,000 with zero cost to sell.  Expected future cash flows from continued use of the brand are $13,000,000 (undiscounted) and the present value of future cash flows is 9,000,000

Research and Development Costs

The company incurred research and development costs of $2,000,000 in 2008.  Of this amount, 70% related to development activities subsequent to the point at which criteria had been met that an intangible asset existed.  The development costs were completed at the end of 2008 and will be amortized over 10 years beginning 2009.

Property Plant and Equipment

On January 1, 2009 a building that had an original cost of $20,000,000 and (Purchase date January 1 2001) and was being depreciated over 20 years was determined to have a fair value of $15,000,000.   The company uses the revaluation model for such assets.

Sale Leaseback

On January 1, 2006 the company realized a gain on a sales leaseback of $6,000,000.  The term of the lease (starting the date of the sale) is 15 years.

Taylor Corporation reports inventory and cost of goods sold based on calculations from a LIFO periodic inventory system. The company’s records under this system reveal the following inventory layers at the beginning of 2021 (listed in chronological order of acquisition):

During 2021, 30,000 units were purchased for $25 per unit. Due to unexpected demand for the company’s product, 2021 sales totaled 40,000 units at various prices, leaving 15,000 units in ending inventory.

Required:

1. Calculate the amount to report for cost of goods sold for 2021.
2. Determine the amount of LIFO liquidation profit that the company must report in a disclosure note to its 2021 financial statements. Assume an income tax rate of 25%.
3. If the company decided to purchase an additional 10,000 units at $25 per unit at the end of the year, how much income tax currently payable would be saved?