The Rogers Company uses a standard cost accounting system and estimates production for the year to be 60,000 units. At this volume, the company's variable overhead costs are $0.50 per direct labor hour.

The company's single product has a standard cost of $30.00 per unit. Included in the $30.00 is $13.20 for direct materials (3 yards) and $12.00 of direct labor (2 hours). Production information for the month of March follows:

Required:

(Be sure to indicate whether the variances are favorable or unfavorable and show your work.)

1. Compute the direct material price variance.
2. Compute the direct material efficiency variance.
3. Compute the direct labor price (rate) variance.
4. Compute the direct labor efficiency variance.

The following information was taken from the records of Skysong Inc. for the year 2017: Income tax applicable to income from continuing operations $213,724; income tax applicable to loss on discontinued operations $28,186, and unrealized holding gain on available-for-sale securities (net of tax) $23,100. Gain on sale of equipment $97,400 Cash dividends declared $153,000 Loss on discontinued operations 82,900 Retained earnings January 1, 2017 542,500 Administrative expenses 246,100 Cost of goods sold 894,100 Rent revenue 42,300 Selling expenses 322,400 Loss on write-down of inventory 61,700 Sales Revenue 2,013,200 Shares outstanding during 2017 were 90,400.

(1) Prepare a multiple-step income statement.

(2) Prepare a retained earnings statement for 2017.

IMTU Corporation (it stand for " Made This Up") had sales last year of $5,500,000. They sell heat shields to place on your lap for stupid McD's customers who insist on placing a cup of hot coffee between their legs. The materials cost $100,000 (that's good) but the labor to put them together costs $1,850,000 (yes they are union and yes the company is looking to move this operation "off-shore" next year but that's beyond the scope of this course). Advertising was just $80,000, as they mostly use word-of-mouth. They did need to raise some money this year. The bank loaned them $250,000 at 6% (that interest is due this year). The interest didn't worry them too much as it was partly off-set by the dividend check they received from McDonalds for $12,000 (hmmmmm - I wonder if there is a conflict of interest here?) Anyway, all things considered, "it was a very good year" so much so they paid their loyal shareholders $65,000 in common stock dividends. OK, given all that, what was their Federal tax bill?

Group of answer choices

Sales = $5,500,000

COGS = 100,000+1,850,000 = 1,950,000

Gross Profit = $3,550,000

Advertising = $80,000

Interest on the loan = $18,000

Income reported on dividends is only 20% due to exclusion. So reported is $1,600.

$3,550,000-80,000-15,000 = $4,455,000

$4,455,000+$3,600 = $4,458,600.

Federal taxable income is $4,458,600.

The actual taxes paid are $2,175,924

Sales = $5,500,000

COGS = 80,000+750,000 = 830,000

Gross Profit = $170,000

Advertising = $80,000

Interest on the loan = $12,000

170,000-50,000-12,000 = 108,000

Federal taxable income is $108,000

The actual taxes paid are $23,306.

Sales = $5,500,000

COGS = 100,000+1,850,000 = 1,950,000

Gross Profit = $3,550,000

Advertising = $80,000

Interest on the loan = $15,000

Income reported on dividends is only 30% due to exclusion. So reported is $3,600.

$3,550,000-80,000-15,000 = $3,455,000

$3,455,000+$3,600 = $3,458,600.

Federal taxable income is $3,458,600.

The actual taxes paid are $1,175,924

Sales = $5,500,000

COGS = 100,000+1,750,000 = 1,750,000

Gross Profit = $3,550,000

Advertising = $80,000

Interest on the loan = $17,000

Income reported on dividends is only 30% due to exclusion. So reported is $2,600.

$3,550,000-80,000-15,000 = $3,455,000

$3,455,000+$2,600 = $1,458,600.

Federal taxable income is $3,458,600.

The actual taxes paid are $1,175,924

Assume that Denis Savard Inc. has the following accounts at the end of the current year.

Prepare a classified balance sheet in good form. (List Current Assets in order of liquidity. For Land, Treasury Stock, Notes Payable, Preferred Stock Investments, Notes Receivable, Receivables-Officers, Inventory, Bonds Payable, and Restricted Cash, enter the account name only and do not provide the descriptive information provided in the question.)

show work and explain, especially total liabilities and equity

If a corporation’s tax return shows taxable income of $104,000 for Year 2 and a tax rate of 40%, how much will appear on the December 31, Year 2, balance sheet for “Income taxes payable” if the company has made estimated tax payments of $35,900 for Year 2?

Event 1: record entry for issuance of common stock

Event 2: record purchase of equipment for cash

Event 3: record cash received from revenue

Event 4: record cash paid for salaries expenses

Event 5: record depreciation expense

b. Then post them to T-accounts.

c.

Consider a 1-year forward contract on a stock with a price of $51. The current price of the stock is $50. A cash dividend payment of $2 per share is anticipated in 9 months. The interest rate is 3% per annum with continuously compounding. Assume that there are no transaction costs.

(a) Determine the fair price and the initial value of the forward contract today.

(b) Is there any arbitrage opportunity? Verify your trading positions taken at each point in time.

(c) After 10 months, the stock price falls 2% and the interest rate remains unchanged. Calculate the value of the forward contract. What is the mark-to-market?

“Diamond Company” is preparing a budget for the first quarter of year 2020. The following information is available:

• Total expected sales for last two months of 2019 and four months of 2020 are (in 000’s LE)

• All sales are on credit and collections from sales are 60% in the month of sales, 30% in the next month, and 10% in the following month.
• Cost of goods sold is 70% of sales.
• The desired ending inventory every month is 30% of the next month's cost of goods sold.

• It is expected that ending inventory of December, 2019, will be valued at LE 33 600.
• All purchases are paid in the month of purchases.
• All cash operating expenses are paid when incurred and the following are the budgeted expenses per month:

Wages LE 31 000, Advertising LE 5 000, Depreciation LE 16 000, Rent 12 000.

• It is planned to pay, for other cash operating expenses, the amount of LE 16 000 in January and LE 43 800 in February 2020.

DataSpan, Inc., automated its plant at the start of the current year and installed a flexible manufacturing system. The company is also evaluating its suppliers and moving toward Lean Production. Many adjustment problems have been encountered, including problems relating to performance measurement. After much study, the company has decided to use the performance measures below, and it has gathered data relating to these measures for the first four months of operations.

Management has asked for your help in computing throughput time, delivery cycle time, and MCE. The following average times have been logged over the last four months:

Required:

1-a. Compute the throughput time for each month.

1-b. Compute the delivery cycle time for each month.

1-c. Compute the manufacturing cycle efficiency (MCE) for each month.

2. Evaluate the company’s performance over the last four months.

3-a. Refer to the move time, process time, and so forth, given for month 4. Assume that in month 5 the move time, process time, and so forth, are the same as in month 4, except that through the use of Lean Production the company is able to completely eliminate the queue time during production. Compute the new throughput time and MCE.

3-b. Refer to the move time, process time, and so forth, given for month 4. Assume in month 6 that the move time, process time, and so forth, are again the same as in month 4, except that the company is able to completely eliminate both the queue time during production and the inspection time. Compute the new throughput time and MCE.