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

During its first year of operations, Walsh produced 50,000 units and sold 40,000 units. During its second year of operations, it produced 40,000 units and sold 50,000 units. The selling price of the company’s product is $51 per unit.

Required:

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.

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.

3. Reconcile the difference between variable costing and absorption costing net operating income in Year 1.

Entries for Stock Investments, Dividends, and Sale of Stock

Yerbury Corp. manufactures construction equipment.

Journalize the entries to record the following selected equity investment transactions completed by Yerbury during a recent year:

In your computations, round per share amounts to two decimal places. When required, round final answers to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank.

The Tavels left for vacation on December 18, 2015. When they returned home on January 4, 2016, they found their home had been burglarized. Taken from their home were a high definition Tv worth $4,000 and artwork worth $22,500. The Tavels had purchased the Tv a few months ago for $5,600. They had purchased the artwork for $ 8,400 in 2006. Unfortunatly, the Tavels allowed their homeowner's insurance to lapse last year. The Tavels' AGI in 2015 and 2016 is $83,00 and $92,000 , respectely.

a.) In which year can the Tavels claim a casualty and theft loss deduction?

b.) Compute the Tavels' casualty and theft loss deduction?

c.) How would your answer to part b. change if the Tavels had insured the artwork and received $7,500 from the insurance company for their loss?

Halford v. Seed Hawk Inc. 2006 FCA 275 (CanLII) 275 D.L.R. (4th) 556; 54 C.P.R. (4th) 130 (F.C.A.)

James Halford was a university-trained farmer who invented a device for putting seeds and fertilizer into the ground in one operation. It was a relatively simple device but he was granted a patent for it. Norbert Beaujot, an engineer and part-time farmer, developed a similar device and incorporated a company to commercially exploit it. Halford sued. Beaujot had seen the Halford device in operation before he developed his own, but the machine he developed was quite different although it accomplished the same thing.

What is the nature of Halford’s complaint?

Explain the arguments for both sides and the likely outcome.

What is the appropriate remedy if Halford is successful?

Whole Foods. By 2006, Whole Foods Market had evolved into the “world’s largest retail chain of natural and organic foods supermarkets.” Their rapid growth and success is primarily due to being highly selective about what they sell, as well as being dedicated quality standards and core values. However, sales growth has slowed. CEO John Mackey is highly committed to these values, however, the company needs to survive, and thus WF has agreed to a sale to Amazon for more than $13B. What are the key issues that facing Whole Foods? Evaluate the sale in terms of its likelihood to resolve these key issue. What alternative courses of action could Whole Foods have taken? Evaluate each course of action (pros and cons). Recommend the best course of action.

7. A. Ben Cohen and Jerry Greenfield originally made ice cream in the back of their own shop. Later they expanded their business into a stock exchange traded corporation and built a factory that produced 240,000 pints per day. What happened to their own ownership when they expanded and built the brand’s first mass production factory?  

B. Many years after their successful expansion, Ben Cohen and Jerry Greenfield were forced, against their will, to sell all of their ownership rights to the Ben and Jerry’s brand name along with its, by then, many factories.   This sale took place against their stated preferences. Explain how and why they were forced to sell the successful company that they had created.    

41) If you have 100 shares of Google Inc. The stock is traded at $1,200. We assume that the firm will announce 10:1 stock split. What’s the total number of shares you will have after the stock split?

42) Based on the information in Question 41, what will be the total value of your holdings of Google stock after the stock split?

45) A company purchased $25,000 worth of inventory. The terms of sale were 2/5, net 45. What’s the implicit interest if a buyer does not take the cash discount?

7. A. Ben Cohen and Jerry Greenfield originally made ice cream in the back of their own shop. Later they expanded their business into a stock exchange traded corporation and built a factory that produced 240,000 pints per day. What happened to their own ownership when they expanded and built the brand’s first mass production factory?  

B. Many years after their successful expansion, Ben Cohen and Jerry Greenfield were forced, against their will, to sell all of their ownership rights to the Ben and Jerry’s brand name along with its, by then, many factories.   This sale took place against their stated preferences. Explain how and why they were forced to sell the successful company that they had created.  

High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company uses a job-order costing system in which departmental predetermined overhead rates are used to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Molding Department is based on machine-hours, and the rate in the Painting Department is based on direct labor-hours. At the beginning of the year, the company provided the following estimates: Department Molding Painting Direct labor-hours 39,000 53,800 Machine-hours 89,000 38,000 Fixed manufacturing overhead cost $ 222,500 $ 473,440 Variable manufacturing overhead per machine-hour $ 2.80 - Variable manufacturing overhead per direct labor-hour - $ 4.80 Job 205 was started on August 1 and completed on August 10. The company's cost records show the following information concerning the job: Department Molding Painting Direct labor-hours 83 131 Machine-hours 300 74 Direct materials $ 942 $ 1,200 Direct labor cost $ 740 $ 1,010 Required: 1. Compute the predetermined overhead rates used in the Molding Department and the Painting Department. 2. Compute the total overhead cost applied to Job 205. 3-a. What would be the total manufacturing cost recorded for Job 205? 3-b. If the job contained 34 units, what would be the unit product cost?