[The following information applies to the questions displayed below.]

Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow.

Additional Information

Sales and production data for these first two years follow.

Variable cost per unit and total fixed costs are unchanged during 2016 and 2017. The company's $31 per unit product cost consists of the following.

Selling and administrative expenses consist of the following.

Complete income statements for the company for each of its first two years under variable costing. (Loss amounts should be entered with a minus sign.)

Calculating Weighted-Average Cost Inventory Values

The Mann Corporation began operations in 2015. Information relating to the company’s purchases of inventory and sales of products for 2015 and 2016 is presented below

Calculate the weighted-average cost of goods sold and ending inventory for 2015 and 2016 assuming use of (a) the periodic method and (b) the perpetual method.

a. Weighted-Average Periodic. Do not round your cost per unit. Do not round until your final answer. Round your answers to the nearest whole number.

b. Weighted-Average Perpetual. Do not round your cost per unit. Do not round until your final answer. Round your answers to the nearest whole number.

The following financial information (in millions except for per share amounts) is for two major corporations for the three fiscal years ended December 31 as follows:

Neither company has preferred shares issued.

(a1)

Calculate earnings per share and the price-earnings and dividend payout ratios for each company for 2017, 2016, and 2015. (Round earnings per share and price-earnings ratio answers to 2 decimal places, e.g. 52.76. Round payout ratio answers to 3 decimal places, e.g. 5.276.)

Calculating Weighted-Average Cost Inventory Values The Mann Corporation began operations in 2015. Information relating to the company’s purchases of inventory and sales of products for 2015 and 2016 is presented below 2015 March 1 Purchase 200 units @ $10 per unit June 1 Sold 120 units @ $25 per unit September 1 Purchase 100 units @ $14 per unit November 1 Sold 130 units @ $25 per unit 2016 March 1 Purchase 100 units @ $16 per unit June 1 Sold 80 units @ $30 per unit September 1 Purchase 100 units @ $18 per unit November 1 Sold 100 units @ $35 per unit Calculate the weighted-average cost of goods sold and ending inventory for 2015 and 2016 assuming use of (a) the periodic method and (b) the perpetual method. a. Weighted-Average Periodic. Do not round your cost per unit. Do not round until your final answer. Round your answers to the nearest whole number. 2015 Cost of goods sold $Answer Ending inventory $Answer 2016 Cost of goods sold $Answer Ending inventory $Answer b. Weighted-Average Perpetual. Do not round your cost per unit. Do not round until your final answer. Round your answers to the nearest whole number. 2015 Cost of goods sold $Answer Ending inventory $Answer 2016 Cost of goods sold $Answer Ending inventory $Answer

On 1 July 2016 Kashmir Ltd was registered as a public company. The financial year end is 30 June each year. On 5 July a prospectus was issued inviting applications for 200,000 shares payable $1.00 on application, 50 cents on allotment and 25 cents on call one and 25 cents on call two. Call one was made three months after the date of allotment, and call two was made six months after the date of allotment.

By 31 July 2016 applications were received for 250,000 shares. On 3 August 2016 the directors allotted 200,000 shares to the applicants on a pro rata basis. The surplus application money was offset against the amount payable on allotment. The balance of the allotment money was received by 15 August 2016. Share issue costs were $15,000, and these were paid on 31 August 2016.

The two calls were made on the dates stated in the prospectus, and a month after, each call monies were received, except that the holders of 15,000 shares did not pay either call. In addition a holder of another 5,000 shares did not pay the second call. All the shares with unpaid call money were forfeited on 2 July 2017 and reissued on 25 July 2017 to existing shareholders with the price of $1.50 each. The money of forfeited shares was refunded on 10 August 2017 after paying the re? issuing cost of the solicitor amounted to $1,000 on 1 August 2017.

Required:
Prepare entries in general journal form to record the above transactions.

Prepare a Statement of Shareholders’ Equity for Kashmir Ltd as at 30 June 2017

On January 2, 2015, Roth, Inc. purchased a laser cutting machine to be used in the fabrication of a part for one of its key products. The machine cost $120,000, and its estimated useful life was four years or 1,150,000 cuttings, after which it could be sold for $5,000.

Required

a. Calculate each year’s depreciation expense for the machine's useful life under each of the following depreciation methods (round all answers to the nearest dollar):

1. Straight-line.
2. Double-declining balance.
3. Units-of-production. (Assume annual production in cuttings of 280,000; 430,000; 360,000; and 80,000.)

1. Straight-Line

2. Double-declining balance

3. Units of Production

b. Assume that the machine was purchased on July 1, 2015. Calculate each year’s depreciation expense for the machine's useful life under each of the following depreciation methods:

1. Straight-line.
2. Double-declining balance.

1. Straight-Line

2. Double-declining balance (Round answers to the nearest whole number, when appropriate.)

In 2000, the Gandoff Company purchased all of the outstanding stock of Bilbo Company at book value. Gandoff accounts for its investment in Bilbo under the initial value method and Bilbo pays no dividends

In 2016, Gandoff sold inventory to Bilbo Co for $600,000 on credit. This merchandise had cost Gandoff $300,000. At the end of 2016 Bilbo had not sold any of this merchandise nor had they paid Gandoff for the merchandise

In 2017 Bilbo paid off Gandoff and had sold 70% of the merchandise acquired from Gandoff.

In 2018 Bilbo sold the rest of the merchandise it had acquired from Gandoff

REQUIRED:

A) MAKE THE JOURNAL ENTRY GANDOFF MAKES WHEN IT SELLS THE MERCHANDISE TO BILBO (GANDOFF USES THE PERPETUAL METHOD FOR INVENTORY)

B) MAKE THE JOURNAL ENTRY BILBO MAKES WHEN IT BUYS THE MERCHANDISE FROM GANDOFF (BILBO ALSO USES PERPETUAL INVENTORY METHOD)

C) MAKE ANY NECESSARY WORKSHEET ENTRIES FOR 2016 CONNECTED WITH THIS MERCHANDISE

D)MAKE ANY NECESSARY WORKSHEET ENTRIES IN 2017 CONNECTED WITH THIS MERCHANDISE

E) MAKE ANY NECESSARY WORKSHEET ENTRIES IN 2018 CONNECTED WITH THIS MERCHANDISE

F) IN 2016, GANDOFF REPORTED UNCONSOLIDATED INCOME OF $4,000,000 AND BILBO REPORTED INCOME OF $300,000 WHAT WAS CONSOLIDATED INCOME IN 2016

G) IN 2017, GANDOFF REPORTED UNCONSOLIDATED INCOME OF $4,300,000 AND BILBO REPORTED INCOME OF $333,000 WHAT WAS CONSOLDIATED INCOME IN 2017

H) IN 2018 GANDOFF REPORTED UNCONSOLIDTED INCOME OF $5,000,000 AND BILBO REPORTED INCOME OF $500,000 WHAT WAS CONSOLIDATED INCOME IN 2018?

The amounts of the assets and liabilities of Nordic Travel Agency at December 31, 2016, the end of the year, and its revenue and expenses for the year follow. The retained earnings were $640,000 on January 1, 2016, the beginning of the year. During the year, dividends of $43,000 were paid.

Sweet Dates Company offers a premium to its customers—a glass bowl (cost to Sweet Dates is $0.90) upon return of 40 coupons. Two coupons are placed in each box of dates sold. The company estimates, on the basis of past experience, that only 70% of the coupons will ever be redeemed. During 2016, 10 million boxes of dates are sold, for cash, at $0.30 each. Eight million coupons are redeemed during 2016. Sweet Dates purchased 360,000 glass bowls for the plan on January 1, 2016.

q2

On January 1, 2017, Fro-Yo Inc. began offering customers a cash rebate of $5.00 if the customer mails in 10 proof-of-purchase labels from its frozen yogurt containers. Based on historical experience, the company estimates that 20% of the labels will be redeemed. During 2017, the company sold 5,000,000 frozen yogurt containers at $1, cash, per container. From these sales, 800,000 labels were redeemed in 2017, 150,000 labels were redeemed in 2018, and the remaining labels were never redeemed.

Johnson, Inc. manufactures car seats in its Houston plant. Each car seat passes through the Assembly Dept and the Testing Dept. This problem focuses on the Assembly Dept. the process-costing system at Johnson, Inc. has a single direct-cost category (direct materials) and a single indirect-cost category (conversion costs). Direct materials are added at the beginning of the process. Conversion costs are added evenly during the process. When the Assembly Dept finished work on each car seat, it is immediately transferred to Testing.

Johnson, Inc. uses the First In First Out Method of process costing. Data for the Assembly Dept for June 2016 is:

                                                      Physical Units             Direct                  Conversion     

                                                (Car Seats)                 Materials           Costs

Work-in-process, June 1*             5,000               $1,250,000      $402,750

Started during Jun 2016              20,000

Completed during Jun 2016        22,500

Work-in-process Jun 30**            2,500

Total costs added during

   June 2016                                                           $4,500,000      $2,337,500

*Degree of completion: DM ?%; CC 60%

**Degree of completion: DM ?%; CC 70%

1. For each cost category; compute equivalent units in the Assembly Dept. Show

      physical units in the first column of the schedule.

2. For each cost category, summarize total Assembly Dept costs for June 2016 and

             calculate the cost per equivalent unit.

3. Assign total costs to units completed and transferred out and to units in ending Work in Process

4. Prepare the journal entry to move costs from WIP-Assembly Dept to the WIP-         

Testing Department.