During 2020, Tamarisk Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Tamarisk for a lump sum of $149,625 because it is discontinuing manufacturing operations and wishes to dispose of its entire stock. Three types of chairs are included in the carload. The three types and the estimated selling price for each are listed below.

During 2020, Tamarisk sells 500 lounge chairs, 250 armchairs, and 300 straight chairs.

What is the amount of gross profit realized during 2020? What is the amount of inventory of unsold straight chairs on December 31, 2020? (Round cost per chair to 2 decimal places, e.g. 78.25 and final answer to 0 decimal places, e.g. 5,845.)

With the following information answer questions A to D

The company produces computers. Its normal costing system consists of 2 cost categories (materials and labor) and a manufacturing overhead category. Manufacturing overhead is applied using a direct labor hour rate.

Budgdeted information for january-dec 2020
Direct labor 420,000
Manufacturing overhead 252,000
Direct labor hours 25,200

At the end of 2020, these were the jobs with costs accumulated
#one
Direct materials 22,000
Direct labor 11,000
Labor machine hour 1,200
#two
Direct materials 42,000
Direct labor 39,000
Labor machine hours 2,400

Total current costs for 2020 were
Manufactory overhead 250,000
Direct labor 400,000
Total labor hours during 2020 were 24,000

Determine Manufactory Overhead rate application: A
Make journal entry for manufactury overhead application in 2020: B
Is it overapplied or underapplied? Please demonstrate under a T account. C
Calculate the total cost for order # 1 D

The Garvey Sign Company uses the allowance method in accounting for uncollectible accounts. Past experience indicates that 6% of accounts receivable will eventually be uncollectible. Selected account balances at December 31, 2019, and December 31, 2020, appear below:

Instructions:

(a) Record the following events in 2020. Omit explanations. 8pts

Aug. 10 - Determined that the account of Kurt West for $900 is uncollectible.

Sept. 12 - Determined that the account of Jill Lynch for $3,000 is uncollectible.

Oct. 10 - Received a check for $300 as payment on account from Kurt West, whose account had previously been written off as uncollectible.

(b) Prepare the adjusting journal entry to record the bad debt provision for the year ended December 31, 2020. SHOW CALCULATIONS.

(c) What is the balance of Allowance for Doubtful Accounts at December 31, 2020? SHOW CALCULATIONS.

p) Product Differentiation Strategy

Ratliff Appliances Company makes a household appliance with model number RM16. The goal for 2020 is to reduce direct materials usage per unit. No defective units are currently produced. Manufacturing conversion costs depend on production capacity defined in terms of RM16 units that can be produced. The industry market size for appliances increased 10% from 2019 to 2020. The following additional data are available for 2019 and 2020:

Ignoring the market growth, but considering your answer to question (a), how much of Ratliff Co’s change in income from 2019 to 2020 is due to a product differentiation strategy?

On February 1, 2020, Joe agreed to construct a building at a contract price of $17,400. Joe estimated total construction costs would be $12,000 and the project would be finished in 2022. Information relating to the costs and billings for this contract is as follows:

                                                                             2020                       2021                      2022       

Total costs incurred to date                                        $4,500                    $7,920                  $13,800

Estimated costs to complete                                         7,500                      5,280                     -0-

Customer billings to date                                             6,600                    12,000                    16,800

Collections to date                                                      6,000                    10,500                    16,500

Instructions:

1. Fill in the correct amounts on the following schedule. For percentage-of-completion accounting and for completed-contract accounting, show the gross profit that should be recorded for 2020, 2021, and 2022.

                        Percentage-of-Completion                                   Completed-Contract

                                    Gross Profit                                                   Gross Profit

            2020               ___________                            2020              ___________

            2021               ___________                            2021              ___________                 

            2022               ___________                            2022              ___________                 

2. Make the journal entries to record construction expense, construction revenue, and gross profit for the second year, 2021.
3. At the end of the 2021, the second year of construction, will the company report a current asset or a current liability? And how much?

Oriole Company purchased equipment for $238,400 on October 1, 2020. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $15,200. Estimated production is 36,000 units and estimated working hours are 20,000. During 2020, Oriole uses the equipment for 500 hours and the equipment produces 1,100 units.

Compute depreciation expense under each of the following methods. Oriole is on a calendar-year basis ending December 31. (Round rate per hour and rate per unit to 2 decimal places, e.g. 5.35 and final answers to 0 decimal places, e.g. 45,892.)

During 2020, Pearl Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Pearl for a lump sum of $29,925 because it is discontinuing manufacturing operations and wishes to dispose of its entire stock. Three types of chairs are included in the carload. The three types and the estimated selling price for each are listed below.

During 2020, Pearl sells 100 lounge chairs, 50 armchairs, and 60 straight chairs.

What is the amount of gross profit realized during 2020? What is the amount of inventory of unsold straight chairs on December 31, 2020? (Round cost per chair to 2 decimal places, e.g. 78.25 and final answer to 0 decimal places, e.g. 5,845.)

During 2020, Pretenders Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Pretenders for a lump sum of $59,850 because it is discontinuing manufacturing operations and wishes to dispose of its entire stock. Three types of chairs are included in the carload. The three types and the estimated selling price for each are listed below. Type No. of Chairs Estimated Selling Price Each Lounge chairs 400 $90 Armchairs 300 80 Straight chairs 700 50 During 2020, Pretenders sells 200 lounge chairs, 100 armchairs, and 120 straight chairs. What is the amount of gross profit realized during 2020? What is the amount of inventory of unsold straight chairs on December 31, 2020? (Round cost per chair to 2 decimal places, e.g. 78.25 and final answer to 0 decimal places, e.g. 5,845.)

The Miraculous Medicinals Company (MMC), a manufacturer and distributor of cannabis-based therapeutics, issued bonds with the following characteristics on January 1, 2020: $1,000 par value, annual nominal interest rate of 7.5%, semiannual coupon payments, and a maturity of 10 years. The bonds are callable at the end of 3 years with a call premium equal to one semiannual coupon payment.

On July 1^st of 2020 the price of one of these bonds had declined to $875 (Assume that the coupon payment due July 1^st has already been paid.)

Is this bond considered a “discount” or a “premium” bond? Have interest rates risen or fallen since the time the bond was issued? r

Calculate the Yield to Maturity (YTM) of this bond as of July 1, 2020.

Calculate the Yield to Call (YTC) of this bond as of July 1, 2020.

If the interest rate environment that exists in July of 2020 persists over the next several years, would you expect that MMC will call this bond? Why or why not?

Given the above, should investors expect to earn the YTM or the YTC?

Clarks & Co. signed a contract on January 15, 2020 to provide Daisies Cake Factory with an
ingredient-weighing system for a price of $150,000. The system included finely tuned scales that
fit into Daisies automated line, Clarks proprietary software modified to allow the weighing
system to function in Dasies automated system, and a two-year contract to calibrate the
equipment and software on an as-needed basis. If Clark was to provide these goods or services
separately, it would charge $120,000 for the scales, $20,000 for the software, and $30,000 for the
calibration contract. Clark Company delivered and installed the equipment and software on
February 1, 2020, and the calibration service commenced on that date.

A. Assume that the scales, software and calibration service are all separate performance
obligations.

1. How much revenue will Clark recognize in 2020 for this contract?
2. Record in General Journal form the above transactions and required adjusting
entry at December 31, 2020.

B. Assume that the scales, software and calibration service are viewed as one performance
obligation. How much revenue will Clark recognize in 2020 for this contract?