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Is ABC info always better than Average-cost? No… not always. ABC costing will surely be more detailed and most likely more accurate, however will an organization's benefits of ABC outweigh the added intricate, time consuming costly characteristics?

One factor to consider in this would be the amount of overhead costs an organization tends to operate with. ABC should be used "when overhead is high, because small changes in each product cost can make a large difference overall." A company who produces one single product would likely have low overhead as most of the costs would be direct costs associated with the single product. In this situation, ABC benefits would not outweigh the costs and time required to produce ABC information.

“While ABC isn't allowed for external financial reporting, companies may find it useful to enact an ABC system to more effectively analyze cost data.” Since ABC does not conform to GAAP for external reporting requirements, a company essentially has to report on costs twice. It’s important for organizations to consider the added time and cost of now reporting two different ways.

Marwick’s Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,496 per unit and then sells them to retail customers for an average price of $2,300 each. The company’s selling and administrative costs for a typical month are presented below: Costs Cost Formula Selling: Advertising $ 956 per month Sales salaries and commissions $ 4,828 per month, plus 3% of sales Delivery of pianos to customers $ 59 per piano sold Utilities $ 640 per month Depreciation of sales facilities $ 5,046 per month Administrative: Executive salaries $ 13,522 per month Insurance $ 697 per month Clerical $ 2,549 per month, plus $41 per piano sold Depreciation of office equipment $ 937 per month During August, Marwick’s Pianos, Inc., sold and delivered 64 pianos. Required: 1. Prepare a traditional format income statement for August. 2. Prepare a contribution format income statement for August. Show costs and revenues on both a total and a per unit basis down through contribution margin.

The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Amount Sales $ 1,360,000 Selling price per pair of skis $ 400 Variable selling expense per pair of skis $ 46 Variable administrative expense per pair of skis $ 19 Total fixed selling expense $ 135,000 Total fixed administrative expense $ 125,000 Beginning merchandise inventory $ 75,000 Ending merchandise inventory $ 115,000 Merchandise purchases $ 285,000 Required: 1. Prepare a traditional income statement for the quarter ended March 31. 2. Prepare a contribution format income statement for the quarter ended March 31. 3. What was the contribution margin per unit?

​Don’t Cry Over Spilled​ Milk, Inc., a manufacturer of​ mops, uses the weighted average method in its processing costing system. The company uses a departmental costing system to allocate manufacturing overhead​ (MOH) to production. Production in the​ company's first processing​ department, Machining, is highly automated. As​such, machine hours are used as the allocation base in the department.

At the beginning of the​ year, the company estimated that its total MOH would be​ $400,000; 87.5% of which was expected to be generated in the Machining department. The Machining department was expected to log​ 100,000 machine hours during the year. The following data related to the operations in Machining during June​ 2018:

During​ June, 8,500 actual machine hours were logged during production.

​(round all calculation to 2 decimal places. round final answers to the nearest

dollar.​)

The cost to assemble one mop in June was

A.​$19.87       

B.​$13.77

C.​$19.67

Natalie’s friend, Curtis Lesperance, decides to meet with Natalie after hearing that her discussions about a possible business partnership with her friend Katy Peterson have failed. (Natalie had decided that forming a partnership with Katy, a high school friend, would hurt their friendship. Natalie had also concluded that she and Katy were not compatible to operate a business venture together.) Because Natalie has been so successful with Continuing Cookie Chronicle and Curtis has been just as successful with his coffee shop, they both conclude that they could benefit from each other’s business expertise. Curtis and Natalie next evaluate the different types of business organization. Because of the advantage of limited personal liability, they decide to form a corporation. Curtis has operated his coffee shop for 2 years. He buys coffee, muffins, and cookies from a local supplier. Natalie’s business consists of giving cookie-making classes and selling fine European mixers. The plan is for Natalie to use the premises Curtis currently rents to give her cooking-making classes and demonstrations of the mixers that she sells. Natalie will also hire, train, and supervise staff to bake the cookies and muffins sold in the coffee shop. By offering her classes on the premises, Natalie will save on travel time going from one place to another. Another advantage is that the coffee shop will have one central location for selling the mixers. The current market values of the assets of both businesses are as follows. Curtis’s Coffee Continuing Cookie Chronicle Cash $7,130 $12,000 Accounts receivable 100 800 Inventory 450 1,200 Equipment 2,500 1,000 * *Cookie Chronicle decided not to buy the delivery van considered in Chapter 10. Combining forces will also allow Natalie and Curtis to pool their resources and buy a few more assets to run their new business venture. Curtis and Natalie then meet with a lawyer and form a corporation on November 1, 2020, called Cookie & Coffee Creations Inc. The articles of incorporation state that there will be two classes of shares that the corporation is authorized to issue: common shares and preferred shares. They authorize 100,000 no-par shares of common stock, and 10,000 no-par shares of preferred stock with a $0.50 noncumulative dividend. The assets held by each of their sole proprietorships will be transferred into the corporation at current market value. Curtis will receive 10,180 common shares, and Natalie will receive 15,000 common shares in the corporation. Therefore, the shares have a fair value of $1 per share. Natalie and Curtis are very excited about this new business venture. They come to you with the following questions: Prepare the journal entries required on November 1, 2020, the date when Natalie and Curtis transfer the assets of their respective businesses into Cookie & Coffee Creations Inc.

Assume that Cookie & Coffee Creations Inc. issues 1,000 $0.50 noncumulative preferred shares to Curtis’s dad and the same number to Natalie’s grandmother, in both cases for $5,000. Also assume that Cookie & Coffee Creations Inc. issues 750 common shares to its lawyer.

Prepare the journal entries for each of these transactions. They all occurred on November 1. Prepare the opening balance sheet for Cookie & Coffee Creations Inc. as of November 1, 2020, including the journal entries in (b) and (c) above.

Accounts Receivable
Cash
Common Stock
Equipment
Income Summary
Inventory
Land
Organization Expense
Paid-in Capital from Treasury Stock
Paid-in Capital in Excess of Par-Common Stock
Paid-in Capital in Excess of Par-Preferred Stock
Paid-in Capital in Excess of Stated Value-Common Stock
Patents
Preferred Stock
Retained Earnings
Share Capital-Ordinary
Share Capital-Preference
Share Premium-Ordinary
Share Premium-Preference
Treasury Stock

Under the United States Generally Accepted Accounting Standards (U.S. GAAP), property, plant and Equipment are reported at historical cost net of accumulated depreciation. These assets are written down to fair value when it is determined that they have been impaired.

Several other countries, including Australia, Brazil,England, Mexico and Singapore, permit the revaluation of property, plant and equipment to their current cost as of the balance sheet date. The primary argument in favor of revaluation is that the historical cost of assets purchased ten, twenty, or more years ago is not meaningful. A primary argument against revaluation is the lack of objectivity in arriving at current cost estimates,particularly for old assets that either will or cannot be replaced with similar assets or for which there are no comparable or similar assets currently available for purchase.

Required:1) List and discuss the 5 qualitative concept of comparability. In your opinion, would the financial statements of companies operating in one of the foreign countries listed above be comparable to a U. S. company’s financial statements? Explain.

UCC Revised Article 3 covers negotiable instruments within the US. What problems hinder any efforts to establish uniform international rules for negotiable instruments? What additional variables do you see in trying to establish a uniform international set of rules for negotiable instruments compared to doing so solely within the United States?

Like the folk song from the 1960's, "The times they are a changin'." UCC revised Article 3 and the law of negotiable instruments were designed to create a substitute for cash and to facilitate commerce. Has the importance of negotiable instruments in commerce increased or decreased in recent years? How will increased online commerce affect the importance of negotiable instruments?

The Statement of Cash Flow The following cash flow information was taken from The General Electric Company (GE) annual report. Compute the missing values in the table (amounts are in millions). Year 3 Year 2 Year 1 Cash, beginning balance $Answer 91,968 $75,984 $Answer 98,508 Cash flow from operating activities 225,846 218,904 175,374 Cash flow from investing activities Answer (283,722) (230,484) (131,058) Cash flow from financing activities (36,714) Answer (27,564) (21,792) Cash, ending balance $70,806 $91,968 $Answer 75,984

Sandy Bank, Inc., makes one model of wooden canoe. Partial information is given below.

Required:

1. Complete the following table.

2. Suppose Sandy Bank sells its canoes for $580 each. Calculate the contribution margin per canoe and the contribution margin ratio.

3. This year Sandy Bank expects to sell 810 canoes. Prepare a contribution margin income statement for the company.

4. Calculate Sandy Bank’s break-even point in units and in sales dollars.

5. Suppose Sandy Bank wants to earn $85,000 profit this year. Calculate the number of canoes that must be sold to achieve this target.

1. Complete the following table. (Round your "Cost per Unit" answers to 2 decimal places.)

2. Suppose Sandy Bank sells its canoes for $580 each. Calculate the contribution margin per canoe and the contribution margin ratio. (Round your intermediate calculations and final answers to 2 decimal places. Round your "percentage" answer to 2 decimal places. (i.e. .1234 should be entered as 12.34%.))

3. This year Sandy Bank expects to sell 810 canoes. Prepare a contribution margin income statement for the company. (Round your intermediate calculations to 2 decimal places.)

4. Calculate Sandy Bank’s break-even point in units and in sales dollars. (Round final answers to the nearest whole number.)

5. Suppose Sandy Bank wants to earn $85,000 profit this year. Calculate the number of canoes that must be sold to achieve this target. (Round Unit Contribution Margin to 2 decimal places. Round your answer to the next whole number.)

Because the absorption-cost approach includes allocated fixed costs, it does not clarify how the company’s costs will change as the sales volume changes. Identify three specific reasons why some managers prefer the variable-cost approach.

Question 1 4 pts

The following account appears on the income statement of a merchandiser:

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Question 2 4 pts

Which of the following would we credit to record the purchase of merchandise inventory on account if the company uses a perpetual inventory system?

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Question 3 4 pts

On April 1, our company purchases $1,000 worth of merchandise inventory on credit with the terms 2/10, n/30. What is the amount we would credit to cash if we pay this invoice on April 20?

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Question 4 4 pts

Under FOB shipping, title to merchandise passes to the purchaser when:

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Question 5 4 pts

Our company sold merchandise on account with a cost of $700 for $1,000. Our company uses a perpetual inventory system. What account and amount would we credit to record the cost of the merchandise sold?

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Question 6 4 pts

Our company sold merchandise on account with a cost of $700 for $1,000. Our company uses a perpetual inventory system. What account and amount would we debit to record the cost of the merchandise sold?

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Question 7 4 pts

Which of the following appears on a multi-step income statement but not on a single-step income statement?

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Question 8 4 pts

What is the recommended inventory method for a company dealing in unique, high-priced inventory items?

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Question 9 4 pts

The two main inventory accounting systems are:

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Question 10 4 pts

A company purchased 10 units for $5 on January 3. It purchased 10 units for $7 each on February 28. It sold 10 units on March 1. If the company uses the first in, first out (FIFO) inventory costing method, what is the dollar amount for ending inventory on the December 31 balance sheet, assuming that the company uses a perpetual inventory system?

PLEASE ANSWER ALL THE QUESTIONS ...ITS FOR THE EXAM THANK YOU

Assume you currently work at a CPA firm. During the assessment of internal controls, your firm concluded that your publicly traded client did not have accounting staff who met the firm’s criteria for having adequate accounting expertise to ensure the company’s financials were prepared in compliance with appropriate accounting principles. This was identified as a material weakness and an adverse opinion was issued.

In a PowerPoint presentation, prepare information to further train the audit team on how to handle issues, which includes:

the communication that is required with the client.

the actions that the client must take to mitigate the weakness.

the course of action your firm should take as it relates to the financial audit.

After the report had been issued, assume that the client hired a CPA with extensive reporting experience to manage the accounting department. What part does this hiring decision play, if any, in your firm’s decision?

Your presentation should meet the following criteria: Be 6-8 slides in length, not including the title and reference slides.

Explain the three common methods of assigning overhead to the cost of a product. Be sure to discuss the advantages and disadvantages of each method. Which method do you feel is the best one to use and why. Give a specific type of product/production in your answer. " Managerial Accounting"

You have been employed to establish a computerised accounting system in a small organisation. The organisation currently uses a ledger card system for its accounts. The organisation has chosen a popular proprietary accounting software system. Describe the steps to be taken prior to inputting the data into the computerised system and how you would go about implementing the new system.

You must show that you can:

• set up an organisation’s chart of accounts by modifying an established integrated financial software system
• interpret and apply organisational policies and procedures
• implement an integrated accounting system ensuring integrity of the data
• process transactions, generate reports and maintain the integrated system

(Answer should be in Australian legislation)

(Accounting software can be MYOB, XERO or Quickbooks)