Tec Industries manufactures and sells one product. The following information pertains to each of the company’s first two years of operations:

Variable costs per unit: Manufacturing: Direct Materials $ 35 Direct Labor $ 25 Variable manufacturing overhead $ 7 Variable Selling and administrative $ 5 Fixed costs per year: Fixed manufacturing overhead $ 320,000 Fixed selling and administrative expenses $ 125,000

During its first year of operations, BIA produced 40,000 units and sold 30,000 units. During its second year of operations, BIA produced 40,000 and sold 50,000 units. The selling price of the company’s product is $100 per unit.

2) Assume the company uses Absorption Costing.

a. Compute the unit product cost for Year 1 and Year 2.

b. Prepare an income statement for Year 1 and Year 2 using Absorption Costing.

PLEASE SHOW ALL WORK!!

The shareholders' equity of Janeek Enterprises includes $253,600 of no par common stock and $532,300 of 5% cumulative preferred stock. The board of directors declared cash dividends of $81,900 in 2016 after paying $23,500 cash dividends in 2015. What is the amount of dividends paid to common shareholders in 2016? ______________________

PLEASE SHOW ALL WORK AND EXPLAIN, THANK YOU

Tec Industries manufactures and sells one product. The following information pertains to each of the company’s first two years of operations:

Variable costs per unit: Manufacturing: Direct Materials $ 35 Direct Labor $ 25 Variable manufacturing overhead $ 7 Variable Selling and administrative $ 5 Fixed costs per year: Fixed manufacturing overhead $ 320,000 Fixed selling and administrative expenses $ 125,000

During its first year of operations, BIA produced 40,000 units and sold 30,000 units. During its second year of operations, BIA produced 40,000 and sold 50,000 units. The selling price of the company’s product is $100 per unit.

1) Assume the company uses Variable Costing.

a. Compute the unit product cost for Year 1 and Year 2.

b. Prepare an income statement for Year 1 and Year 2 using Variable Costing.

PLEASE SHOW ALL WORK!!

On January 20X2, Lucky Company purchased $5,000,000 of Fire Corp. 3% bonds, classified as a FVTPL. The bonds pay semi-annual interest each 30 June and 31 December. The market interest rate was 4% o the date of purchase. The bonds mature on 30 December 20X11. At the end of 20X2, the bonds had a fair value of $4,800,000.

1. Calculate the price paid by Lucky.

2. Give entries for the first year assuming that the investment is classified as FVTPL.

Contribution Margin Concepts
The following information is taken from the 2017 records of Hendrix's Guitar Center.

Required

(a.) Determine the annual break-even dollar sales volume.

Contribution margin ratio: Answer
Annual break-even dollar sales volumes: $Answer

(b.) Determine the current margin of safety in dollars.  
$Answer

(c.) Prepare a cost-volume-profit graph for the guitar shop. Label both axes in dollars with maximum values of $1,000,000. Draw a vertical line on the graph for the current ($750,000) sales level, and label total variable costs, total fixed costs, and total profits at $75,000 sales.

(d.) What is the annual break-even dollar sales volume if management makes a decision that increases fixed costs by $100,000?
$Answer

Patterson Products Inc. is considering an upgrade to its manufacturing equipment. The two upgrade options under consideration are shown below.

The selling price of the company’s product is $192 per unit with variable selling costs of 10% of sales. Fixed selling and administrative costs are $3,360,000 per year.

There would be no change to the selling price, variable selling costs, or fixed selling and administrative costs as the result of the manufacturing equipment upgrade.

Required:

1. At what annual number of unit sales would Patterson Products Inc. be indifferent between the two upgrade options?

2. If demand falls short of the indifference point calculated in part (1), which option would be preferred?

• Option 1

• Option 2

3. Calculate the break-even point in unit sales under each upgrade option. (Round your final answers to the nearest whole number.)

List the types of tax-free reorganizations?

Data for Jim's Landscaping are shown below: Per Unit % of Sales Selling Price $600 100% Variable Expenses $390 65 % Contribution Margin $210 35 %

Fixed Expenses are $500,000 per month and the company is selling 5,000 units per month.

7) The marketing manager believes that a $54,000 increase in the monthly advertising budget would increase monthly sales by 250 units (a 5% increase in sales). Should the advertising budget be increased? Yes or no? SHOW YOUR WORK

8) Jim's Landscaping Operation Manager believes that if they increase the quality of the components that the higher-quality product would increase sales by 10%. The higher quality components will cost an additional $20 per unit. Should the higher quality components be used? SHOW YOUR WORK

On 2 January 2016, Southern Pizza bought a used Nissan delivery van for R19 200. The van was expected to remain in service for four years (30 000 Kilometers). At the end of its useful life, Southern officials estimated that the van 's residual value would be R2 400. The van travelled 8000 Km the first year, 8 500 Km the second year, 5 500 Km the third year, and 8 000 Km in the fourth year. Prepare a schedule of depreciation expense per year for the van under the three (3) depreciation methods. ( For -units -of-production and double-declining-balance, round to the nearest two (2) decimals after each step of calculation.)

Required:

1. Which method best tracks the wear and tear of the van?

2. Which method would Southern prefer to use for income tax purposes? Explain in detail why Southern prefer this method.

Frozen Ltd purchased machinery on 1 July 2011 for $680,000.  The machinery is expected to have a useful life of 20 years and a residual value of $80,000.  The firm accounts for the machinery using the revaluation model.  The fair value of the machinery on 30 June 2012 is $699,400. The machinery was sold for $500,000 cash on 31 December 2013.  No revisions are made to the useful life and residual value at the time of the revaluations.

1. Record depreciation of the machinery for the year ended 30 June 2012.
2. Record the entries to revalue the machinery on 30 June 2012.
3. Record depreciation of the machinery for the year ended 30 June 2013.
4. Record allentries necessitated by the sale of the machinery on 31 December 2013.

Erumpifier Multiproduct Breakeven Case ABC Company has committed to contracts and other fixed exp...

erumpifier Multiproduct Breakeven Case

ABC Company has committed to contracts and other fixed expenses in the amount of $100,000 per

month. Its four major product lines include the following hair care products:



Structurizers



Volumizers



Derumpifiers



Coagulators (to stop the bleeding)

Anticipated annual volumes for each of the above respectively is: 10,000, 20,000, 30,000, 40,000 units.

Variable costs for each of the above respectively is: $10, $15, $20, $25

Selling price for each of the above respectively is: $20, $60, $50, $75

Required:

1.

Complete the Multiproduct breakeven analysis and:

E.

Is contribution margin profit?

F.

Is the company breaking even? And if so, how much does it make?

G.

What can a company do when it is below breakeven?

must state whether the Variance is Favourable or Unfavourable. To receive full credit your answer must be labeled as such. For example: An answer such as “- $4500” will not be given full credit, even if the number is correct. The same number shown as “$4500 Favourable” would receive full marks. The following are independent questions: 1. Information on Fleming Company's direct material costs follows: Actual amount of direct materials purchased and used 20,000 kilograms Actual direct material costs $40,000 Standard direct material costs $2.10 per kilogram Calculate the direct materials price variance – 2 marks 2. During March, Younger Company’s direct material costs for product T were as follows: Actual unit purchase price $6.50 per meter Standard quantity allowed for actual production 2,100 meters Quantity purchased and used for actual production 2,300 meters Standard unit price $6.25 per meter Calculate the materials usage variance – 2 marks 3. The following labour standards have been established for a particular product Standard labour hours per unit of output 1.7 hours Standard labour rate $14.25 per hour The following data pertains to operations concerning the product for the last month: Actual hours worked 3,700 hours Actual total labour cost $50,690 Actual output 2,300 units Calculate the labour rate variance – 2 marks 4. Yola Company manufactures a product with standards for direct labour of 4 direct labour-hours per unit at a cost of $12.00 per direct labour-hour. During June, 1,000 units were produced using 4,100 hours at $12.20 per hour. What was the direct labour efficiency variance? Calculate the labour efficiency variance – 2 marks

Journal entries for a Custodial Fund The city of Belle collects property taxes for other local governments—Beau County and the Landis Independent School District (LISD). The city uses a Property Tax Collection Custodial Fund to account for its collection of property taxes for itself, Beau County, and LISD. Prepare journal entries to record the following transactions and events for Belle’s Custodial Fund during calendar year 2019. 1. During 2019, property taxes were levied for Belle ($2,000,000), Beau County ($1,000,000) and LISD ($3,000,000). Assume taxes collected by the Custodial Fund will be paid to Belle’s General Fund. 2. Property taxes in the amount of $4,500,000 are collected. The percentage collected for each entity is in the same proportion as the original levy. 3. The amount owed to the city of Belle, Beau County, and LISD is recognized. The city of Belle charges an administrative fee to Beau County ($20,000) and LISD ($60,000) to collect the taxes, which reduces the amount owed to Beau County and LISD. 4. The Custodial Fund distributes the amount owed to the three governments.

Discuss the differences in using an option to hedge a foreign currency risk rather than a forward contract.

1/ An asset acquired January 1, 2018, for $14,300 with an estimated 10-year life and no residual value is being depreciated in an equipment group asset account that has an average service life of eight years. The asset is sold on December 31, 2019, for $5,400. The entry to record the sale would be:

Multiple Choice

• Cash	5,400
  Accumulated depreciation	8,900
  Equipment		14,300

• Cash	5,400
  Accumulated depreciation	3,575
  Loss on sale of equipment	5,325
  Equipment		14,300

• Cash	5,400
  Loss on sale of equipment	8,900
  Equipment		14,300

• Cash	5,400
  Equipment		5,400

2/ Cutter Enterprises purchased equipment for $99,000 on January 1, 2018. The equipment is expected to have a five-year life and a residual value of $5,100.

Using the straight-line method, depreciation for 2019 and the equipment's book value at December 31, 2019, would be:

Multiple Choice

• $19,800 and $79,200 respectively.

• $18,780 and $61,440 respectively.

• $18,780 and $56,340 respectively.

• $39,600 and $59,400 respectively.