Given the following information, prepare a Schedule C using 2019 rates.

Denise operates her business under the name "Design by Denise." Her office is located at 2359 Dawnridge Drive, Houston, Texas 77025. The federal EIN for her business is 51- 4867579 and the principal business code is 541400. Denise, who materially participates in her business, has operated it profitably for 3 of the last 4 years and is fully "at risk" with respect to her investment. She also has filed all required Forms 1099.

In accounting for her business, Denise uses the cash method. For 2019, her records show the following income and expenses. She participated in James’s health insurance plan and did not have to pay any premiums.

Gross receipts (not reported on Form 1099) . . . . . . . . . . . . . . . . . . . . . . $90,000

Gross receipts (reported on Form 1099; payer was Bernice Ng’s Furnishings, EIN 68-8752318, nonemployee compensation) . . . . 25,000 Expenses:

Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000

Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,000

Legal services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,500

Office expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,300

Equipment and machinery rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,800

Office rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000

Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,000

Taxes and licenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,500

Utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,400

Subscriptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500

In connection with her business, Denise often travels from her business location to the homes and offices of her clients, where she provides advice and expertise on interior design. During 2019, her written auto log shows that she drove her vehicle (a 2018 Mitsubishi Mirage that she purchased and put in service on May 13, 2017) 22,400 miles for business purposes, 3,800 miles for commuting, and 1,800 miles for personal purposes. Denise did not keep track of all her specific expenditures for the car and she wishes to deduct her auto expenses using the standard mileage rate for 2019. She has written evidence to support her mileage. The business car was available for use during off-duty hours, but she and her spouse also have another vehicle available for personal use.

Also in connection with her business, Denise purchased a Mac computer and HP laser color printer. The computer was purchased for $2,200 on November 10, 2019. The printer was purchased for $5,800 on September 30, 2019. Denise used both the computer and printer for business purposes at her office 85 percent of the time, and personal purposes 15 percent of the time, for which she has written evidence. Denise would like to deduct the maximum allowable amount on each of these assets.

Category Cost: Rent Monthly, cost $3000, Utilities Monthly $1100, Insurance Quarterly $1200, Property Taxes, annually $6000, Steel per shelf $9.00, forming per shelf $.25, Labor per shelf $.75 Price charged per shelf $20.00 This company will break even with monthly production of ____ units, and sales of __________

250; $5000

!0,000; $500

$5000; 250

500; $10,000

Date Items Cost Total Cost

March 1 10 $120 $1,200

March 4 13 $115 $1,495

March 16 20 $105 $2,100

March 28 18 $100 $1,800

Total 61 $6,595

During the month, 20 of the items were sold. Identify which cost flow assumption would achieve the indicated result.

Group of answer choices

Higher net income

FIFO            Weighted-Average            LIFO      

Lower net income

FIFO            Weighted-Average            LIFO      

Higher Inventory on the Balance Sheet

FIFO            Weighted-Average            LIFO      

Lower Inventory on the Balance Sheet

FIFO            Weighted-Average            LIFO      

Hermione Co. reported the information shown in Table 5-1.

Table 5-1

10.       Refer to Table 5-1. Assume that Hermione uses perpetual LIFO. The cost of the ending inventory is:

A.        $1,700.

B.         $1,670.

C.         $1,655.

D.        $1,600.

11.       Refer to Table 5-1. Assume that Hermione uses perpetual weighted average costing. The average cost of a unit sold on June 22 is:

A.        $400.

B.         $402.50.

C.         $404.

D.        $405.

12.       Refer to Table 5-1. Assume that Hermione uses perpetual FIFO. The entry to record the March 1 credit sale at a sale price of $800 per unit would include all of the following EXCEPT a:

A.        credit to Inventory, $2,400.

B.         debit to Cost of Goods Sold, $1,200.

C.         debit to Accounts Receivable, $2,400.

D.        credit to Sales Revenue, $2,400.

13.       Refer to Table 5-1. Assume that Hermione uses periodic FIFO. The cost of goods sold for the period is:

A.        $2,470.

B.         $2.410.

C.         $1,660.

D.        $1,600.

1. 1b. At a price of $14, what is the profit-maximizing number the firm should produce each day? (note: Do not necessarily just look at economic profit. Look at marginal revenue and marginal cost. Pick the one where MR=MC).

2. 1f. What is the ATC associated with the profit-maximizing number you chose in 1b (and 1d)? (round to the nearest penny)

3. 2b. At a price of $10, What is the profit-maximizing number the firm should produce each day? (Again, do not necessarily just look at economic profit. Look at marginal revenue and marginal cost.)

4. 2c. What is the ATC associated with the profit-maximizing number you chose in 2b? (round to the nearest penny)

5. 2f. What are the total variable costs associated with the profit-maximizing number you chose in 2b? (round to the nearest penny)

Part one: Calculate cost per unit. (Round answer to 2 decimal places) Weighted-average cost per unit

Part two: Calculate ending inventory, cost of goods sole, and gross profit under each of the following methods: LIFO, FIFO, and Average Cost.

Part three: Calculate gross profit rate under each of the following methods: LIFO, FIFO, and Average-cost (Round answers to 1 decimal place)

You are provided with the following information for Cheyenne Inc. for the month ended June 30, 2019. Cheyenne uses the periodic method for inventory.