Create a model for a production cost report using the weighted average method for the month of May. You should have an input area in which you put the department information for the month, and an output area that calculates the production cost report. Please include step by step directions(in a text box).After completion of the production cost report using the weighted average method, create a new worksheet and label the tab “FIFO”.  Create a production cost report using the same information using the FIFO method.

Department Data:

Forester Company has five products in its inventory. Information about the December 31, 2018, inventory follows:

The cost to sell for each product consists of a 15 percent sales commission. The normal profit percentage for each product is 40 percent of the selling price.

(1) Determine the carrying value of inventory at December 31, 2018, assuming the lower of cost or market (LCM) rule is applied to individual products.

(2) Determine the carrying value of inventory at December 31, 2018, assuming the LCM rule is applied to the entire inventory. Also, assuming inventory write-downs are usual business practice for Forester, record any necessary year-end adjusting entry.

Greenwood Company manufactures two products—15,000 units of Product Y and 7,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z:

Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z?

Azure has a job order and the following data have been recorded on its job cost sheet:

Direct material                          $50,000

Direct labour hours                   1,000

Direct labour wage rate             $25

Machine hours                          750 hours

Number of units completed       800

The company applies manufacturing overhead on the basis of machine hours and the predetermined overhead rate is $20 per machine hour. Management is now considering whether this job order is profitable or not and how does this job order fare compared to the industry benchmark.

Required

1. Compute the unit product cost that would appear on the job cost sheet for this job.

2. Using a mark-up percentage of 20% of the full product cost, how much profit/loss would this job make?

3. Considering the industry benchmark for manufacturing overhead for similar jobs is 50% of direct labour, identify whether this job has a manufacturing overhead lower or higher than a similar job using the industry benchmark. Briefly explain what could cause a difference.

Sandy Bank, Inc., makes one model of wooden canoe. and, the information for it follows:

Sandy Bank sells its canoes for $375 each.

Required:

1. Suppose that Sandy Bank raises its selling price to $500 per canoe. Calculate its new break-even point in units and in sales dollars.

2. If Sandy Bank sells 690 canoes, compute its margin of safety in dollars and as a percentage of sales. (Use the new sales price of $500.)

3. Calculate the number of canoes that Sandy Bank must sell at $500 each to generate $100,000 profit.

Sandy Bank, Inc., makes one model of wooden canoe. and, the information for it follows:

1. Suppose that Sandy Bank raises its selling price to $500 per canoe. Calculate its new break-even point in units and in sales dollars.

2. If Sandy Bank sells 1,570 canoes, compute its margin of safety in units and as a percentage of sales. (Use the new sales price of $500.)

3.  Calculate the number of canoes that Sandy Bank must sell at $500 each to generate $130,000 profit.

1. Supose that Sandy Bank

Hails Corporation manufactures two products: Product Q21F and Product H44W. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Q21F and H44W.

Using the ABC system, the percentage of the total overhead cost that is assigned to Product Q21F is closest to:

Forester Company has five products in its inventory. Information about the December 31, 2018, inventory follows.

The cost to sell for each product consists of a 10 percent sales commission. The normal profit percentage for each product is 35 percent of the selling price.

Required:
1. Determine the carrying value of inventory at December 31, 2018, assuming the lower of cost or market (LCM) rule is applied to individual products.
2a. Determine the carrying value of inventory at December 31, 2018, assuming the LCM rule is applied to the entire inventory.
2b. Assuming inventory write-downs are usual business practice for Forester, record any necessary year-end adjusting entry.

Davis Industries must choose between a gas-powered and an electric-powered forklift truck for moving materials in its factory. Because both forklifts perform the same function, the firm will choose only one. (They are mutually exclusive investments.) The electric-powered truck will cost more, but it will be less expensive to operate; it will cost $21,500, whereas the gas-powered truck will cost $17,960. The cost of capital that applies to both investments is 13%. The life for both types of truck is estimated to be 6 years, during which time the net cash flows for the electric-powered truck will be $6,860 per year, and those for the gas-powered truck will be $4,600 per year. Annual net cash flows include depreciation expenses. Calculate the NPV and IRR for each type of truck, and decide which to recommend. Do not round intermediate calculations. Round the monetary values to the nearest dollar and percentage values to two decimal places.

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Question: Johnny Bravo Company began operations in 2015 and has provided the following information. Pretax ...

Johnny Bravo Company began operations in 2015 and has provided the following information.

Pretax financial income for 2015 is $100,000.

The tax rate enacted for 2015 and future years is 40%.

Differences between the 2015 income statement and tax return are listed below.

Warranty expense accrued for financial reporting purposes amounts to $5,000. Warranty deductions per the tax return amount to $2,000.

Gross profit on construction contracts using the percentage-of-completion method for book purposes amounts to $92,000. Gross profit on construction contracts for tax purposes amounts to $62,000.

Depreciation of property, plant, and equipment for financial reporting purposes amounts to $60,000.

Depreciation of these assets amounts to $80,000 for the tax return.

A $3,500 fine paid for violation of pollution laws was deducted in computing pretax financial income.

Interest revenue earned on an investment in tax-exempt municipal bonds amounts to $1,400.

Taxable income is expected for the next few years.

1. prepare the journal entry to record income tax expense, deferred taxes, and income taxes payable for 2015.

2. Draft the income tax expense section of the income statement, beginning with “Income before income taxes”