January 1, 2020 December 31, 2020
Direct materials 31,000 50,000
Work in process 38,000 41,000
Finished goods 22,000 34,000
The following information was taken from DTD Company's accounting records
for 2020:
Sales revenue ........................................... $630,000
Direct materials purchased .............................. ?
Depreciation, factory equipment ......................... 34,000
Prime costs ............................................. 250,000
Utilities (60% for factory; 40% for office building) .... 20,000
Sales commissions ....................................... 71,000
Indirect materials ...................................... ?
Depreciation, office equipment .......................... 30,000
Rent, factory building .................................. 56,000
Net income .............................................. 10,000
Direct labor ............................................ ?
Advertising ............................................. 68,000
Production supervisor's salary .......................... 74,000
Additional information:
1. Direct labor comprised 35% of the conversion costs for 2020.
2. The actual overhead cost for 2020 was equal to the overhead applied
to production. Thus there was no overhead variance for 2020.
Calculate DTD Company's indirect materials cost for 2020.In: Accounting
Create a catchy and short title for this blog down below. It has to be short, catchy and creative.
Where would anyone get the most up-to-date news on their favorite restaurants, public schools or local shops during the Coronavirus? If I were to take an actual poll (which will be run through my social media), most would likely say it would be on Instagram, Twitter, and Facebook. I was following one of my favorite bands on Instagram one day, I noticed they have canceled their entire tour due to the Coronavirus. I went to Ticketmaster.com to see if their post on Instagram was true. Unfortunately, the concert was postponed until a later date. The date is still to be determined.
Starbucks has used Instagram as their platform to inform the public of the changes they have done to better serve the committee and to protect its employees from further spreading this virus. Starbuck’s Instagram post from March 26, 2020 states, “Thank you to the healthcare workers and first responders who are working tirelessly to keep our communities safe. Inspired by the generosity of our partners (employees), we are offering all front-line responders a free tall iced or hot brewed coffee at participating stores in the US.”
West Contra Costa Schools used Facebook as their platform to announce changes in the education and services for K-12 schools in Contra Costa County, California. A post from March 27, 2020, shows a schedule and location list for student meal pick-ups for students during the stay-at-home order from the state of California. They included the list to be read in English and in Spanish due to the demographics of the county. They have also included other posts like board meeting schedules. Which these meetings were conducted through Facebook Live.
Nintendo used Instagram as their platform to release information about the new Nintendo Direct Mini set to release on March 26, 2020. At the beginning of the video post, it states, “Please note due to COVID-19, release dates and other information presented in this video are subject to change. For potential updates, please check the official Nintendo website and social media channels, as well as those of other publishers. Our hearts go out to all those impacted by COVID-19 during this challenging time.”
I have seen many companies post condolences to those impacted by COVID-19. They even share some employee accomplishments during the stay-at-home order to make it personable. During this time everyone is either feeling really motivated to try something new or tired of being in one place at all times. Posts on social media really help us get in touch with others around the world to “venture out”. How would you use social media as a PR objective for your company? Either as strictly informational, use for productivity or make it personable?
In: Operations Management
With respect to the division of property, what is the difference between community property states and states that are not community property states?
In: Accounting
Badbug makes Viral Memes which sell for $1,000 each. The production process is fairly simple and involves tweaking components purchased from various suppliers. Since each Viral Meme only takes one hour to assemble, there is essentially no work-in-process inventory.
Badbug has the capacity to make 2,000 Viral Memes per year.
Costs for the Viral Meme components are:
|
Primary GIF |
$100 |
|||
|
Secondary GIF |
20 |
|||
|
JPEGs |
10 |
Each meme should take one hour of direct labor to tweak. Direct labor wages are $150 per hour.
Other manufacturing costs on a monthly basis are:
|
Factory Rent |
$1,000 |
||
|
Factory Insurance |
5,000 |
||
|
Factory Utilities |
200 |
||
|
Factory Miscellaneous |
300 |
Inventory balances are as follows (Badbug uses the FIFO inventory cost flow assumption):
|
Units |
Dollars |
||||
|
Primary GIFs |
1/1/2020 |
300 |
$30,000 |
||
|
12/31/2020 |
290 |
< Budgeted |
|||
|
Secondary GIFs |
1/1/2020 |
600 |
$12,000 |
||
|
12/31/2020 |
580 |
< Budgeted |
|||
|
JPEGs |
1/1/2020 |
900 |
$9,000 |
||
|
12/31/2020 |
870 |
< Budgeted |
|||
|
Finished Viral Memes |
1/1/2020 |
300 |
$107,400 |
||
|
12/31/2020 |
290 |
< Budgeted |
|||
During 2020 (the entire year) Badbug expects to sell 1,000 viral memes.
In: Accounting
Coliseum Company has budgeted the following unit sales:
Quarter Units
Qtr. 1, 2020 60,000
Qtr. 2, 2020 50,000
Qtr. 3, 2020 40,000
Qtr. 4, 2020 80,000
The finished goods inventory on hand on December 31, 2019 was 6,000 units. 90% of the next quarter’s sales will come from production during that quarter, and the remainder of next quarter’s sales will come from this quarter’s ending inventory.
Required: Prepare a production budget for the first two quarters of 2020. Include totals column.
In: Accounting
On January 1, 2020, the Maxell Company purchased P400,00 of 6% term bonds. The bonds are dated January 1, 2020, and the interest is payable semiannually on June 30 and December 31. At the time the bonds were purchased the market interest rate was 8%. The bonds mature on December 31, 2030. Maxell Company uses the effective interest method of amortization.
Instruction: Determine the following:
In: Accounting
Computing and Recording Interest Capitalization
The following information is from Bowin Inc. for a long-term construction project that is expected to be completed in January 2021. The construction project is for a building intended for the company’s own use. The capital expenditure on January 1, 2020, is for the purchase of land for the building site. No new construction loans were opened for the project in 2020. All debt was outstanding for the full year.
Capital Expenditures for 2020
| Date | Amount |
|---|---|
| Jan. 1, 2020 | $ 24,000 |
| Mar. 31, 2020 | 720,000 |
| June 30, 2020 | 1,440,000 |
| Nov. 30, 2020 | 720,000 |
Outstanding Debt in 2020
| Debt | Debt Amount | Interest Rate |
|---|---|---|
| Note payable | $800,000 | 8% |
| Note payable | 640,000 | 8% |
| Bond payable | 1,600,000 | 10% |
| Note payable | 400,000 | 9% |
Answer the following questions:
a. Compute interest to be capitalized and the interest to
be expensed in 2020.
b. Prepare the entry to record the construction
expenditures and interest for 2020.
c. Prepare the entry for depreciation in 2021 assuming
that the project is completed on January 1, 2021. Assume that the
building has a useful life of 30 years, and that the company uses
the straight-line depreciation method.
Note: Do not round until your final answers, then round to nearest whole number.
a.
| Amount of interest to be capitalized | Answer |
| Amount of interest to expense |
b.
Land
Construction in process
cash and payables
c.
In: Accounting
Carla Company sponsors a defined benefit pension plan for its
employees. The following data relate to the operation of the plan
for the year 2020 in which no benefits were paid.
| 1. | The actuarial present value of future benefits earned by employees for services rendered in 2020 amounted to $55,500. | |
| 2. | The company’s funding policy requires a contribution to the pension trustee amounting to $144,729 for 2020. | |
| 3. | As of January 1, 2020, the company had a projected benefit obligation of $908,100, an accumulated benefit obligation of $802,100, and a debit balance of $400,100 in accumulated OCI (PSC). The fair value of pension plan assets amounted to $601,200 at the beginning of the year. The actual and expected return on plan assets was $54,100. The settlement rate was 9%. No gains or losses occurred in 2020 and no benefits were paid. | |
| 4. | Amortization of prior service cost was $50,500 in 2020. Amortization of net gain or loss was not required in 2020. |
Determine the amounts of the components of pension expense that should be recognized by the company in 2020.
(Should be a a table that shows the components of pension expense)
Prepare the journal entry or entries to record pension expense and the employer’s contribution to the pension trustee in 2020.
Indicate the pension-related amounts that would be reported on
the income statement and the balance sheet for Carla Company for
the year 2020.
[Need Income Statement (partial), Comprehensive Income Statement,
and Balance Sheet (partial)]
In: Accounting
Question 7
The following information is available for Skysong Corporation
for 2020.
| 1. | Depreciation reported on the tax return exceeded depreciation reported on the income statement by $124,000. This difference will reverse in equal amounts of $31,000 over the years 2021–2024. | |
| 2. | Interest received on municipal bonds was $9,600. | |
| 3. | Rent collected in advance on January 1, 2020, totaled $59,700 for a 3-year period. Of this amount, $39,800 was reported as unearned at December 31, 2020, for book purposes. | |
| 4. | The tax rates are 40% for 2020 and 35% for 2021 and subsequent years. | |
| 5. | Income taxes of $333,000 are due per the tax return for 2020. | |
| 6. | No deferred taxes existed at the beginning of 2020. |
1. Compute taxable income for 2020.
2. Compute pretax financial income for 2020.
3. Prepare the journal entries to record income tax expense,
deferred income taxes, and income taxes payable for 2020 and 2021.
Assume taxable income was $1,063,000 in 2021. (Credit
account titles are automatically indented when amount is entered.
Do not indent manually. If no entry is required, select "No Entry"
for the account titles and enter 0 for the
amounts.)
4. Prepare the income tax expense section of the income
statement for 2020, beginning with “Income before income taxes.”
(Enter negative amounts using either a negative sign
preceding the number e.g. -45 or parentheses e.g.
(45).)
In: Accounting
The following data relates to Rogers Company for the year ending December 31, 2020:
Net Income for 2020= $920,000
Preferred Stock= 10,000 shares of $100 par 8% cumulative preferred stock were outstanding throughout the year. The preferred stock is non-convertible
Common Stock= 300,000 shares of common stock were issued and outstanding throughout the year. No shares were issued or repurchased, and there were no stock splits or dividends.
Convertible Bonds= 12% convertible bonds at $4,000,000 face amount. (These bonds were issued in 2015 and they are convertible to a total of 120,000 common shares.
Stock Options=500,000 (These options were issued on July 1, 2020. Each option allows the option holder to purchase one common share for $20. The average market price of the common stock in 2020 was $32 a share.
Other information:
Rogers income tax rate for 2020 is 40%
Rogers did not declare or pay any dividends in 2020
Question:
a. What is Rogers "Income available to common shareholders" for 2020?
b. What is Rogers "Weighted average common shares outstanding" for 2020?
c. Compute Rogers Basic Earnings Per Share for 2020?
d. What will be the "Numerator Effect of the convertible bonds?
e. What will be the "Denominator Effect" of the convertible bonds?
f. What will be the "Numerator Effect" of the stock options?
g. What will be the "Denominator Effect" of the stock options?
h. Compute Rogers Diluted Earnings Per Share for 2020?
In: Accounting