Rosie Learns, Inc. manufactures robots and uses an activity-based costing system. Rosie Learns’ activities and related data are listed below:
Activity | Budgeted Cost | Allocation Base | Predetermined Overhead Allocation Rate |
Materials Handling | $230,000 | Number of Parts | $1.50 |
Assembly | 3,200,000 | Number of assembling direct labor hours | 16.00 |
Finishing | 150,000 | Number of finished units* | 3.00 |
*The number of units receiving the finish activity, not the number of units transferred to Finished Goods Inventory.
Rosie Learns produces two models of robots, the Rosie V and the Rosie X. The Rosie X has fewer parts and requires no finishing work.
Product | Total Units Produced | Total Direct Materials Costs | Total Direct Labor Costs | Total Number of Parts | Total Assembling Direct Labor Hours |
Rosie V | 3,000 | 54,000 | 67,500 | 8,000 | 4,500 |
Rosie X | 3,500 | 56,000 | 52,500 | 6,000 | 3,500 |
Requirements:
In: Accounting
Describe one type of cognitive bias (one or two sentences). Provide at least one specific example of how this type of bias could lead to suboptimal accounting decision making.
In: Accounting
Discuss why databases are important in accounting information systems. Describe primary and foreign keys, normalization and database cardinalities. Why are each important to the database design? Your initial posting should be 250-500 words and must be submitted by Thursday, 11:59 pm MST, of this week.
In: Accounting
Refer to FASB 162 (the hierarchy of accounting information). Why is this hierarchy important, and how can it be applied to conducting research?
In: Accounting
Required information [The following information applies to the questions displayed below.] The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30, 2017 and 2016 2017 2016 Assets Cash $ 92,500 $ 69,000 Accounts receivable, net 102,500 76,000 Inventory 88,800 124,000 Prepaid expenses 6,900 10,400 Total current assets 290,700 279,400 Equipment 149,000 140,000 Accum. depreciation—Equipment (39,500 ) (21,500 ) Total assets $ 400,200 $ 397,900 Liabilities and Equity Accounts payable $ 50,000 $ 67,500 Wages payable 8,500 20,000 Income taxes payable 5,900 8,800 Total current liabilities 64,400 96,300 Notes payable (long term) 55,000 85,000 Total liabilities 119,400 181,300 Equity Common stock, $5 par value 270,000 185,000 Retained earnings 10,800 31,600 Total liabilities and equity $ 400,200 $ 397,900 IKIBAN INC. Income Statement For Year Ended June 30, 2017 Sales $ 803,000 Cost of goods sold 436,000 Gross profit 367,000 Operating expenses Depreciation expense $ 83,600 Other expenses 92,000 Total operating expenses 175,600 191,400 Other gains (losses) Gain on sale of equipment 4,500 Income before taxes 195,900 Income taxes expense 46,390 Net income $ 149,510 Additional Information A $30,000 note payable is retired at its $30,000 carrying (book) value in exchange for cash. The only changes affecting retained earnings are net income and cash dividends paid. New equipment is acquired for $82,600 cash. Received cash for the sale of equipment that had cost $73,600, yielding a $4,500 gain. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement. All purchases and sales of inventory are on credit. rev: 12_05_2017_QC_CS-111198 (2) Compute the company's cash flow on total assets ratio for its fiscal year 2017.
In: Accounting
Wanting to finalize a sale before year-end, on December 29, WR Outfitters sold to Bob a warehouse and the land for $178,000. The appraised fair market value of the warehouse was $105,750, and the appraised value of the land was $199,750
a.) What is Bob’s basis in the warehouse and in the land?
b.) What would be Bob’s basis in the warehouse and in the land if the appraised value of the warehouse is $90,750, and the appraised value of the land is $214,750?
c.) Which appraisal would Bob likely prefer?
Appraised value in part (a)
Appraised value in part (b)
In: Accounting
Pro-Weave manufactures stadium blankets by passing the products
through a weaving department and a sewing department. The following
information is available regarding its June inventories:
Beginning Inventory | Ending Inventory | |||||
Raw materials inventory | $ | 142,000 | $ | 273,000 | ||
Work in process inventory—Weaving | 440,000 | 365,000 | ||||
Work in process inventory—Sewing | 575,000 | 770,000 | ||||
Finished goods inventory | 1,416,000 | 1,256,000 | ||||
The following additional information describes the company’s
manufacturing activities for June:
Raw materials purchases (on credit) | $ | 660,000 | |
Factory wages cost (paid in cash) | 3,260,000 | ||
Other factory overhead cost (Other Accounts credited) | 212,000 | ||
Materials used | |||
Direct—Weaving | $ | 260,000 | |
Direct—Sewing | 129,000 | ||
Indirect | 140,000 | ||
Labor used | |||
Direct—Weaving | $ | 1,250,000 | |
Direct—Sewing | 435,000 | ||
Indirect | 1,500,000 | ||
Overhead rates as a percent of direct labor | |||
Weaving | 85 | % | |
Sewing | 165 | % | |
Sales (on credit) | $ | 4,350,000 | |
1. Compute the (a) cost of products transferred
from weaving to sewing, (b) cost of products transferred from
sewing to finished goods, and (c) cost of goods sold.
2. Prepare journal entries dated June 30 to record
(a) goods transferred from weaving to sewing, (b) goods transferred
from sewing to finished goods, and (c) sale of finished goods.
In: Accounting
Stuart Airlines is a small airline that occasionally carries
overload shipments for the overnight delivery company Never-Fail,
Inc. Never-Fail is a multimillion-dollar company started by Wes
Never immediately after he failed to finish his first accounting
course. The company’s motto is “We Never-Fail to Deliver Your
Package on Time.” When Never-Fail has more freight than it can
deliver, it pays Stuart to carry the excess. Stuart contracts with
independent pilots to fly its planes on a per-trip basis. Stuart
recently purchased an airplane that cost the company $6,375,000.
The plane has an estimated useful life of 25,500,000 miles and a
zero salvage value. During the first week in January, Stuart flew
two trips. The first trip was a round trip flight from Chicago to
San Francisco, for which Stuart paid $260 for the pilot and $210
for fuel. The second flight was a round trip from Chicago to New
York. For this trip, it paid $210 for the pilot and $105 for fuel.
The round trip between Chicago and San Francisco is approximately
4,600 miles and the round trip between Chicago and New York is
1,400 miles.
Required
Select if the costs mentioned below are direct or indirect.
Determine the total cost of each trip.
Total cost: Chicago to San Francisco
Chicago to NY
In: Accounting
Intermediate Accounting II
Required:
Round your answers to the nearest whole dollar amounts.
In: Accounting
Make or Buy
Smith Corporation currently manufactures a subassembly for its main product. The costs per unit are as follows:
Direct materials $ 1
Direct labor 10
Variable overhead 5
Fixed overhead 8
Total $24
Funkhouser Company has contacted Smith with an offer to sell it 5,000 of the subassemblies for $20 each. If Funkhouser makes the subassemblies, $5 of the fixed overhead per unit will be allocated to other products.
Required:
a. Should Smith make or buy the subassemblies? Explain your answer. What would be the impact on Net Income? (Make table)
b. What if Smith could rent the space currently used to manufacture the subassemblies for $15,000. What should they do now? What is the impact on Net Income? (Make table)
c. What other factors should Smith consider in making this decision?
In: Accounting
Grant Company leased machinery to Tim Company on July 1, 2015, for a ten-year period expiring June 30, 2025. Equal annual payments under the lease are $150,000 and are due on July 1 of each year. The first payment was made on July 1, 2013. The rate of interest used by Grant and Tim is 9%. The cash selling price of the machinery is $1,050,000 and the cost of the machinery on Grant's accounting records was $930,000. Prepare all of Grant's 2015 journal entries to this lease assuming that it is defined as a sales-type lease.
In: Accounting
The ledger of Cheyenne Corp. on March 31 of the current year
includes the selected accounts, shown below, before quarterly
adjusting entries have been prepared.
Debit |
Credit |
|||
Prepaid Insurance | $ 3,600 | |||
Supplies | 3,200 | |||
Equipment | 31,250 | |||
Accumulated Depreciation—Equipment | $ 8,600 | |||
Notes Payable | 23,000 | |||
Unearned Rent Revenue | 12,000 | |||
Rent Revenue | 62,000 | |||
Interest Expense | 0 | |||
Salaries and Wages Expense | 13,000 |
An analysis of the accounts shows the following.
1. | The equipment depreciates $500 per month. | |
2. | One-third of the unearned rent revenue was earned during the quarter. | |
3. | Interest totaling $575 is accrued on the notes payable for the quarter. | |
4. | Supplies on hand total $500. | |
5. | Insurance expires at the rate of $200 per month. |
Prepare the adjusting entries at March 31, assuming that adjusting
entries are made quarterly. Additional accounts
are Depreciation Expense, Insurance Expense, Interest Payable, and
Supplies Expense. (Credit account titles are
automatically indented when the amount is entered. Do not indent
manually.)
In: Accounting
in context to internationalization of business explain the concept of franchising and strategic alliances
In: Accounting
The comparative balance sheet of Canace Products Inc. for December 31, 20Y6 and 20Y5, is as follows:
Dec. 31, 20Y6 | Dec. 31, 20Y5 | ||||
Assets | |||||
Cash | $231,550 | $214,160 | |||
Accounts receivable (net) | 83,880 | 76,920 | |||
Inventories | 236,790 | 227,710 | |||
Investments | 0 | 88,230 | |||
Land | 121,460 | 0 | |||
Equipment | 261,260 | 201,340 | |||
Accumulated depreciation-equipment | (61,160) | (54,290) | |||
Total assets | $873,780 | $754,070 | |||
Liabilities and Stockholders' Equity | |||||
Accounts payable | $158,150 | $148,550 | |||
Accrued expenses payable | 15,730 | 19,610 | |||
Dividends payable | 8,740 | 6,790 | |||
Common stock, $10 par | 47,180 | 36,950 | |||
Paid-in capital: Excess of issue price over par-common stock | 177,380 | 102,550 | |||
Retained earnings | 466,600 | 439,620 | |||
Total liabilities and stockholders’ equity | $873,780 | $754,070 |
The income statement for the year ended December 31, 20Y6, is as follows:
Sales | $1,382,600 | ||||
Cost of merchandise sold | 569,300 | ||||
Gross profit | $813,300 | ||||
Operating expenses: | |||||
Depreciation expense | $6,870 | ||||
Other operating expenses | 717,930 | ||||
Total operating expenses | 724,800 | ||||
Operating income | $88,500 | ||||
Other expense: | |||||
Loss on sale of investments | (23,820) | ||||
Income before income tax | $64,680 | ||||
Income tax expense | 20,700 | ||||
Net income | $43,980 |
Additional data obtained from an examination of the accounts in the ledger for 20Y6 are as follows:
Required:
Prepare a statement of cash flows, using the direct method of presenting cash flows from operating activities. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.
Canace Products Inc. | ||
Statement of Cash Flows | ||
For the Year Ended December 31, 20Y6 | ||
Cash flows from operating activities: | ||
$ | ||
Net cash flow from operating activities | $ | |
Cash flows from (used for) investing activities: | ||
$ | ||
Net cash flow used for investing activities | ||
Cash flows from (used for) financing activities: | ||
$ | ||
Net cash flow from financing activities | ||
$ | ||
Cash at the beginning of the year | ||
Cash at the end of the year | $ |
In: Accounting
Intermediate Accounting II
On January 1, 2018, Duncan-Lang Services, Inc. a computer software training firm, leased several computers under a two-year operating lease agreement from Neble Leasing, which routinely finances equipment for other firms at an annual interest rate of 4%. The contract calls for four rent payments of $40,000 each, payable semiannually on June 30 and December 31 each year. The computers were acquired by Neble at a cost of $360,000 and were expected to have a useful life of five years with no residual value. Appropriate adjusting entries are recorded at the end of each quarter.
Required: Prepare the appropriate journal entries for both (a) the lessee and (b) the lessor from the beginning of the lease through the end of 2018. Round your answers to the nearest whole dollar amounts.
In: Accounting