Thornton Manufacturing Company uses two departments to make its products. Department I is a cutting department that is machine intensive and uses very few employees. Machines cut and form parts and then place the finished parts on a conveyor belt that carries them to Department II, where they are assembled into finished goods. The assembly department is labor intensive and requires many workers to assemble parts into finished goods. The company’s manufacturing facility incurs two significant overhead costs: employee fringe benefits and utility costs. The annual costs of fringe benefits are $312,000 and utility costs are $240,000. The typical consumption patterns for the two departments are as follows:

The supervisor of each department receives a bonus based on how well the department controls costs. The company’s current policy requires using a single allocation base (machine hours or labor hours) to allocate the total overhead cost of $552,000.

Required

1. Assume that you are the supervisor of Department I. Choose the allocation base that would minimize your department’s share of the total overhead cost. Calculate the amount of overhead that would be allocated to both departments using the base that you selected.

2. Assume that you are the supervisor of Department II. Choose the allocation base that would minimize your department’s share of the total overhead cost. Calculate the amount of overhead that would be allocated to both departments using the base that you selected.

3. Assume that you are the plant manager and have the authority to change the company’s overhead allocation policy. Formulate an overhead allocation policy that would be fair to the supervisors of both Department I and Department II. Compute the overhead allocations for each department using your policy.

Explain the four sources of auditor liability.

See Exhibit 12-4 for opening account balances. Record the following financial transactions for Simonsen Village for the fiscal year ending December 31, 2018. Show the impact of the transactions on the fundamental equation of accounting (optional: show journal entries—see Appendix 12-A). Assume that the modified accrual basis is used.

1. Simonsen Village has employees who earned $400,000 for the year. At the end of the year, the salaries payable balance was $10,000. Note that $200,000 of wages related to general government, $140,000 was for education, and $60,000 was for the public works, safety, and sanitation department.

2. Inventory was ordered by Simonsen Village. The entire order was received. The bill for the inventory purchase was $10,000. By the end of the fiscal year, it had used $6,000 of the inventory, but no payment had been made. The purchases method is used. Each of the three departments had used $2,000 of inventory. The remaining inventory was all earmarked for education.

3. Simonsen Village’s major source of funds is real estate taxes. Total tax bills issued were for $300,000. Total collections were the $20,000 from the previous year’s ending balance in taxes receivable and $260,000 of this year’s taxes. Eighty percent of the outstanding balance at year-end is expected to be collected early in the next fiscal year.

4. Simonsen Village is entitled to receive unrestricted grants from the state. During the year, grants in the amount of $100,000 were made. The total collections on grants were just $20,000. This $20,000 consisted of $10,000 that the state owed for the previous year and $10,000 for the current year’s grant. The state will be paying the balance owed to Simonsen Village within 30 days after the year ends.

5. During the year, Simonsen Village was legally required to transfer $60,000 to its debt service fund. A total of $70,000 of cash was paid to the debt service fund. In years when the full required transfer is not made, the debt service fund has a receivable (Due From General Fund). If more than the required amount is paid, the debt service fund’s receivable declines.

6. Simonsen Village acquired a new fire truck early in the year for $200,000. The fire truck is expected to last 10 years and has no salvage value. It was financed by a long-term note for the full amount. Simonsen Village has a capital projects fund.

7. The interest and principal due on Simonsen Village’s debt during the year and paid from the debt service fund were $8,000 and $30,000, respectively. The interest covers all long-term borrowing by Simonsen Village. The principal relates to the fire truck purchased during the year.

         General fund                            Debt fund                        Capital projects

Cash $300,000

Real estate taxes $20,000

state grants receivable $10,000

due from gen fund                                                      $16,000

salaries payable    $90,000

due to debt service $16,000

fund balance/unrestricted net assests $224,000       $20,000

If a company has asset classes that include short-term and long-term investments, what criteria should they employ to determine if an asset is reported as a cash equivalent or an investment on their classified balance sheet? Use examples to illustrate your position and be sure to cite GAAP to support your claims.

1) Companies prepare four primary financial statements. What are those financial statements, and what information is typically conveyed by each?

2) What are the two essential characteristics of an assets?

Record the following transactions of Lisa’s Fashion Boutique in a general journal. Lisa's Fashion Boutique operates in a state with 8% sales tax. (Round your intermediate calculations and final answers to 2 decimal places): DATE TRANSACTIONS 2019 Feb. 2 Sold merchandise for cash totaling $3,400 to customers using bank credit cards. Record the 10 percent discount on credit card sales at time of sale. 15 Sold merchandise totaling $2,100 to customers using American Express. 20 Received amount due from American Express, less their 11 percent discount, for sales made by customers using American Express on February 15

In the early part of 2018, the partners of Hugh, Jacobs, and Thomas sought assistance from a local accountant. They had begun a new business in 2017 but had never used an accountant’s services.

Hugh and Jacobs began the partnership by contributing $70,000 and $20,000 in cash, respectively. Hugh was to work occasionally at the business, and Jacobs was to be employed full-time. They decided that year-end profits and losses should be assigned as follows:

• Each partner was to be allocated 10 percent interest computed on the beginning capital balances for the period.
• A compensation allowance of $5,000 was to go to Hugh with a $15,000 amount assigned to Jacobs.
• Any remaining income would be split on a 4:6 basis to Hugh and Jacobs, respectively.

In 2017, revenues totaled $95,000, and expenses were $75,000 (not including the partners’ compensation allowance). Hugh withdrew cash of $5,000 during the year, and Jacobs took out $10,000. In addition, the business paid $5,500 for repairs made to Hugh’s home and charged it to repair expense.

On January 1, 2018, the partnership sold a 30 percent interest to Thomas for $70,000 cash. This money was contributed to the business with the bonus method used for accounting purposes.

1. What journal entries should the partnership have recorded on December 31, 2017?

2. What journal entry should the partnership have recorded on January 1, 2018?

Albert files his income tax return (showing a total tax of $23,000) 5½ months after the due date of the return without obtaining an extension from the IRS. Along with the return, he remits a check for $6,600, which is the balance of the tax he owes. Note: Assume 30 days in a month. Disregarding the interest element, enter Albert's penalty amount for each, failure to file and failure to pay.

1) Calculate the value of the ending inventory

2) Calculate and show the schedule for cost of goods sold

3) Calculate and show the schedule for gross profit

4) Calculate and show the gross profit percentage

USE    FIFO / LIFO / WEIGHTED AVERAGE FOR ALL:

Beginning Inv: 10,000 @ $20/unit

Purchased: 30,000 @ $25/unit

Purchased: 15,000 @ $30/unit

Sold: 44,000 @ $50/unit

just looking to get started! student center at school closed down

Zeui Company's material requirement for 1 year is 20,000 units. Ordering cost for each order is Rp. 500,000. Carrying cost is Rp. 20,000 / unit. The lead time is 14 days.
Question:
A. Calculate the EOQ and inventory costs when EOQ!
B. Also calculate the inventory cost for 10 and 30 orders!
C. If the average usage per day is 55 units and the maximum usage per day is 75 units, then calculate the safety stock and ROP!

Balance scorecard:

Describe the price setting process and its features of a balance scorecard.

How can managers use cost accounting information when setting prices?

Required:

1. Prepare statement of cost of goods manufactured in good form.
2. Prepare income statement in good form (ignore income tax expense).

Acme Company’s production budget for August is 18,900 units and includes the following component unit costs: direct materials, $7.2; direct labor, $11.4; variable overhead, $5.4. Budgeted fixed overhead is $46,000. Actual production in August was 21,840 units. Actual unit component costs incurred during August include direct materials, $9.60; direct labor, $10.80; variable overhead, $6.20. Actual fixed overhead was $48,900. The standard fixed overhead application rate per unit consists of $2.2 per machine hour and each unit is allowed a standard of 1 hour of machine time. Required: Calculate the fixed overhead budget variance and the fixed overhead volume variance. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)