tive overi Ive ovehe
Q: A business combination resulting to a goodwill is accounted using acquisition method. In the consoli...
A: A business combination resulting to a goodwill is accounted using acquisition method. In the consoli...
Q: The following information pertains to Entity A: Land held for long-term capital appreciations 2,500,...
A: Investment property is a property (land or building or a part of a building or both) held (by the ow...
Q: On January 1, 2020, Prospero Games Inc. granted stock options to managers and key employees under wh...
A: Employees stock option Plan Employees stock option plan which is considered to be the best option pl...
Q: Heather Hudson makes stuffed teddy bears. Recent information for her business follows: Sell...
A: The degree of operating leverage is a ratio that measures how much operating income of a company wil...
Q: 3. The work in process inventories of Jungkook Manufacturing, Inc. were completely destroyed by fire...
A: Inventory includes both raw materials used in production and finished commodities for sale. Inventor...
Q: 8. The warehouse management team members of a manufacturing company submits their timesheets. The en...
A: job order costing system determination of price of each individual product and assurance of cost of ...
Q: RUE OR FALSE? In computing for the comprehensive income, the translation loss on foreign operation w...
A: solution concept Other comprehensive income The following shall form part of other comprehensive inc...
Q: (2 pounds @ $13) (0.5 hours @ $42) Direct materials $26 Direct labor 21 /ariable overhead is applied...
A: Solution: Budgeted contribution margin per unit = Selling price - Variable cost per unit = $210 - ($...
Q: 0. Presented below is a list of items that may or may not be reported as inventory in a company’s De...
A: Solution Concept Goods on consignment is included in the inventory of the consignor Goods sold on in...
Q: Escalera Company reported an impairment loss of P5,200,000 in its income statement for the year 2016...
A: The question is related to Impairment of Assets. The Impairment Loss is Excess of Carrying Amount ov...
Q: On January 1, 2020, ABC Company purchased factory equipment for 3,000,000. Estimated useful life of ...
A: Depreciation means the amount fixed assets written off due to normal wear and tear , normal usage , ...
Q: Raw materials on hand- P85,000 · Raw materials used (including indirect materials of P35,000)...
A: The balance of inventory will include the balance of Raw material plus the balance of Finished goods...
Q: What is the amount of Inventory to be presented at the Balance Sheet date using the LCNRV Individual...
A: Solution Concept FIFO method : Under this method the goods in opening inventory is sold first LCNRV...
Q: AirQual Test Corporation provides on-site air quality testing services. The company has provided the...
A: Introduction Flexible budget performance report is a management report that compares actual results ...
Q: The work in process inventories of Love Manufacturing, Inc. were completely destroyed by fire on Jun...
A: Introduction: The term inventory refers to both raw materials used in manufacturing and completed go...
Q: Company P acquired 90% of the common stock of Company S on 1/1/2020. On the date of acquisition , Co...
A: Entry for amortization are as follows.
Q: Entity A, a trading entity, buys and sells Product Z. Movements in the inventory of Product Z during...
A: >Cost flow from units purchased to Cost of goods sold can be done using either of the 4 methods: ...
Q: Samgyup Company reported an impairment loss of P5,200,000 in its income statement for the year 2016....
A: The question is related to Impairment of Assets. The Impairment Loss is Excess of Carrying Amount ov...
Q: On July 1, 2019, Nuuty Inc., a calendar-year company, purchased a machine for a cash price of P800,0...
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets ...
Q: Raw materials on hand: 85,000 Raw materials used (including indirect materials of 35,000) : 258,000...
A: Inventory:Raw materials utilized in the production of commodities, as well as the finished items tha...
Q: Rainbow Company has the following information pertaining to its biological assets for the year 2021....
A: A biological asset, according to International Accounting Standard 41 (IAS 41), is any living plant ...
Q: 1. Classify each of the following as an Asset, Liability or Owner's Equity account. Account Asset, L...
A: An asset is a resource with economic value that will provide a future benefit. Liability is a...
Q: 1. What amount should be reported as raw materials available for use for the current year? 2. What a...
A: The company provided is into manufacturing as details on its production costs are provided for curre...
Q: SAAAhon Corporation manufactures custom cabinets for kitchens. It uses an actual costing system with...
A: Solution: Actual manufacturing overhead rate = Actual manufacturing overhead / Actual direct manufac...
Q: On January 3, 2019, P Company acquired 70% interest in S Company for P4,200,000 cash. On this date, ...
A: The consolidated equity represents the amount that is attributable to the shareholders of the group ...
Q: Juniper Enterprises sells handmade clocks. Its variable cost per clock is $6, and each clock sells f...
A: The Break-even point indicates that total units are to be sold by the business entity to recover its...
Q: 9. The balance of work in process inventory account as of December 31, of the current year of Purewo...
A: Balance of WIP = P480,000 Selling price = P450,000 Cost of completion = P10,000 Cost to sell = P5,00...
Q: Lindon Company Is the exclusive distributor for an automotive product that sells for $28.00 per unlt...
A: Cost volume profit analysis is the technique used by the management for decision-making. The methods...
Q: How do business owners determine their taxable income from their business ventures? How does this tr...
A: The given answer for the above mentioned question is given in the following steps for your reference...
Q: On January 2, 2020, Popsters Corporation purchased 80% of SG Corporation's ordinary shares for P648,...
A: The above mentioned question answer is given in the following steps for your reference.
Q: What is the present value of a security that will pay 5, 000 in 20 years if securities of equal risk...
A: solution given Future value 5000 Number of years 20 Interest rate 7% Present v...
Q: On January 1, 2019, Tarlac Company acquired a machine for P4,500,000. The machine has a useful life ...
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets ...
Q: . Lucena Products provided the following information: ...
A: Inventory to be reported in statement of financial position = Raw materials inventory + Finished goo...
Q: The property, plant and equipment account of Cuddle PH was revisited by its property officers. They ...
A: Loss from Derecognition = Cost of the assets - Accumulated Depreciation
Q: In 2020, Ted Baker had total assets of $510.31 million, of which $219.92 million were total noncurre...
A: The current assets ratio can be calculated by dividing current assets by total assets.
Q: the years subsequent to the year of sale of a 90% owned subsidiary who sells equipment to its parent...
A: Solution Concept When there is a sale made (upstream or down stream ) and if the goods remains unsol...
Q: Assume the following S corporations, gross receipts, passive investment income, and corporate E&P. W...
A: solution for above problem are as follows
Q: Meyer & Smith is a full-service technology company. They provide equipment, installation services as...
A: Unearned Revenue: Unearned Revenue means money received from the customer in advance for the service...
Q: Magic Realm, Incorporated, has developed a new fantasy board game. The company sold 26,400 games las...
A: Solution.. Selling price per unit = $64 Variable cost per unit = $44 Fixed cost = $440,000 Unit...
Q: Love Inc. and Life Co. have an exchange with no commercial substance. The asset given up by Love Inc...
A: Book value of asset given up = P12,000 Cash paid = P4,000 Amount to be recorded by Love Inc. = Book ...
Q: [ine ToIioWing inrormation appiies to the questions dispiayea below.j Del Gato Clinic's cash account...
A: It's the summary of banking and business activity which is used to reconcile bank statement with Cas...
Q: 5. Understanding marginal and average tax rates Consider the economy of Cocoland, where citizens con...
A: Calculation of marginal tax rate and average tax rate are as follows:
Q: Determine the missing amounts in the following table: unit sales price unit varible costs unit cont...
A: Contribution margin refers to relationship between Sales and Fixed cost plus Profit.
Q: Sephora offers its customers a traveller's gift set as a premium in exchange for $ 40 if the custome...
A: Journal entry is the first step in the process of accounting, which is recording of financial data i...
Q: In 2020, Blue Construction Corp. began construction work under a 3-year contract. The contract price...
A: Construction Contract: The term "construction contract" refers to agreements to do architectural, de...
Q: December 3T Cash 7,530 Accounts Receivable 2,100 Prepaid Expenses 700 Equipment 13,700 Accumulated D...
A: Trial Balance: Trial balance is a statement in which the closing balance of all ledger accounts are ...
Q: An investor who is in a 33% tax bracket for normal (ordinary) income buys a stock for $5,000 and sel...
A: Financial Instrument: A financial instrument alludes to a resource that can be exchanged by financia...
Q: 3. A proposal to reduce oil spill on MX5 has a B-C ratio of 1.4. The conventional annual worth of be...
A: B-C ratio = 1.4 Annual net benefits (B) = P560,000 Interest rate (i) = 6% Period (n) = 20 Years
Q: Fifo Company purchased a machine with a cash price of P350,000. Fifo gave the following as pay...
A: Discount on notes payable to be recorded on the date of purchase = Fair value of shares issued + cas...
Q: P company bought 60% of common stock of S company on January 1, 20x4. On January 1 20x5, there was a...
A: Share in net income will be For company S Gain on sale of equipment $63,000 Net income from.operati...
Step by step
Solved in 2 steps with 1 images
- Abby Inc. is an established computer software company. In 2009, the firm incurred the following costs in the process of designing, developing and producing a new software program using a certain technology to access the Internet: Designing and planning P1,800,000 Code development 2,700,000 Testing 900,000 Production of product master 4,500,000 In 2010, Abby incurred P1,800,000 in costs to produce the software program for sale in 2010. The costs of designing and planning, code development and testing were all incurred before the technological feasibility of the product was established. Abby began marketing the software program in 2010 and earned revenues of P4,320,000 in 2010. Abby estimates that the total revenues over the 4-year life of the product will be P21,600,000. At the end of 2010, Abby was offered…Abby Inc. is an established computer software company. In 2009, the firm incurred the following costs in the process of designing, developing and producing a new software program using a certain technology to access the Internet: Designing and planning P1,800,000 Code development 2,700,000 Testing 900,000 Production of product master 4,500,000 In 2010, Abby incurred P1,800,000 in costs to produce the software program for sale in 2010. The costs of designing and planning, code development and testing were all incurred before the technological feasibility of the product was established. Abby began marketing the software program in 2010 and earned revenues of P4,320,000 in 2010. Abby estimates that the total revenues over the 4-year life of the product will be P21,600,000. At the end of 2010, Abby was offered…Sunrise, Inc. manufactures gears as a component for its product. In 2022, Sunrise incurred the following costs in producing 12,000 pieces of gears: direct materials – P120,000; direct labor – P80,000; variable manufacturing overhead – P100,000; fixed manufacturing overhead – P200,000; and fixed non-manufacturing costs – P150,000. Makina Corp. offers to produce the 15,000 pieces of the gear component for Sunrise, Inc. needs in 2023. If the latter (Sunrise) accepts to buy the gears from Makina, 40% of the fixed manufacturing overhead will be avoided, but fixed non-manufacturing costs will not change. At what selling price of each gear from Makina will make Sunrise indifferent on whether to produce or buy the said gear components?
- Barbardy Company is introducing a new product. The managers are trying to decide whether to make one of its components or buy it from a supplier at a price of P320. The space that could be used to produce the component would have no other use. The following are the data to make the component. Materials P 90 Labor 100 Variable manufacturing overhead 90 Fixed manufacturing overhead 130 Total 410 The estimate reflects 20,000 volume units of the component. Fixed manufacturing overhead consists of depreciation on old machinery. Required: Determine which option is advantageous and by how much? Buy is advantageous by P800,000 Make is advantageous by P800,000 Buy is advantageous by P1,800,000 Make is advantageous by P1,800,000 Group of answer choices 1 2 3 4Harris Ltd also recently imported an artificial intelligent machinery and incurred the following costs: $List price (trade discount 12.5% on list price) 480,000Haulage costs 5,500Pre-production testing of machinery 25,000Repair & maintenance contract for three years 48,000Running of electrical cable for machinery 28,000Special foundation for mounting machinery 9,000Labor costs (direct) 15,000Harris Ltd paid for the machinery within four weeks of the order, therefore, obtained an early settlement discount of 3%.Harris Ltd had wrongly specified the power loading of the original…NXS Semiconductor prepares its financial statements according to International Financial Reporting Standards.The company incurred the following expenditures during 2018 related to the development of a chip to be used inmobile devices:Salaries and wages for basic research $3,450,000Materials used in basic research 330,000Other costs incurred for basic research 1,220,000Development costs 1,800,000Legal and filing fees for a patent for the new technology 50,000The development costs were incurred after NXS established technological and commercial feasibility and afterNXS deemed the future economic benefits to be probable. The project was successfully completed, and the newchip was patented near the end of the 2018 fiscal year.Required:1. Which of the expenditures should NXS expense in its 2018 income statement?2. Explain the accounting treatment of the remaining expenditures.
- ABC company manufactures a particular computer component. Currently, the cost per unit is as follows: Direct Materials;P50, Direct Labor,P500; Variable Overhead,P250; Fixed Overhead,P400XYZ company has obtained with an offer to sell 10,000 units of the component for P1,100 per unit. If ABC accepts the proposal, P2,500,000 of the fixed overhead will be eliminated. Should ABC make or buy the component? Select the correct response: Make due to savings of P3,000,000 Buy due to savings of P1,000,000 Buy due to savings of P2,500,000 Make due to savings of P500,000On March 17, Advanced Technologies developed a patent related to laser surgery techniques. They spent $1,200,000 to develop the patent internally, consisting of personnel ($800,000), equipment ($300,000), and materials ($100,000). The company also had the following additional costs: $20,000 in legal fees associated with the purchase and filing of the patent, $35,000 to advertise its new laser surgery techniques, and $45,000 to train employees. What is the recorded cost of the patent?Curios Creatives Ltd (CC) is a company specialising in UI and UX design. In the financial year ended30 June 2021, the CC commenced development of a running application that can be fullyintegrated on all types of smartphones, smart watches, and smart gear.The following expenditures were incurred in respect of the running application in the currentfinancial period:Testing of designs R350 000Developer Salaries * R400 000General overhead expenditure R155 000Legal costs associated with the sale of the application** R 70 000Technical feasibility testing *** R 85 000Training of Staff to manage application R35 000*Developer salaries are the salaries paid to the software developers during the design stage of theapplication.** Legal costs include VAT*** Technical feasibility testing costs include the staff members that came in on the weekendwhile the directors did a trial run to test the calibration of the app.After the weekend trial run, the board of directors have assessed that the technology…
- Curios Creatives Ltd (CC) is a company specialising in UI and UX design. In the financial year ended30 June 2021, the CC commenced development of a running application that can be fullyintegrated on all types of smartphones, smart watches, and smart gear.The following expenditures were incurred in respect of the running application in the currentfinancial period:Testing of designs R350 000Developer Salaries * R400 000General overhead expenditure R155 000Legal costs associated with the sale of the application** R 70 000Technical feasibility testing *** R 85 000Training of Staff to manage application R35 000*Developer salaries are the salaries paid to the software developers during the design stage of theapplication.** Legal costs include VAT*** Technical feasibility testing costs include the staff members that came in on the weekendwhile the directors did a trial run to test the calibration of the app.After the weekend trial run, the board of directors have assessed that the technology…A manufacturer has been offered a contract to manufacture a certain product that will utilize the waste materials from his present product. The new product will use 0.3kg of waste materials per unit which is presently sold by the company for P2.00 per kg. Other materials to be used will cost P0.80 per unit. Direct labor per unit will cost P2.30. The present overhead costs of the company amount to P380,000 plus 40% of the total for direct materials and direct labor costs per year. The buyer will pay the manufacturer per unit an amount equal to the increment costs plus P1.20 profit. Determine the selling price of the manufacturer per unit.Benoit Manufacturing Company manufactures and sells parts for various musical gadgets. The followinginformation to a single part which is used in the production of a wind instrument. The business earnedOperating Income of $220,000 in 2019, when production was 3,000 units and the president of Darius is underpressure from shareholders to increase operating income in 2020 and is therefore considering theimplementation of strategies mainly geared at increasing revenues and or decreasing variable costs. Data forvariable cost per unit and total fixed costs were as follows: Variable expenses per unit: Direct Material $58Direct Labour $74Variable Manufacturing Overhead $48Fixed expenses: Fixed Manufacturing Overhead $215,000Fixed Selling Costs $65,000Fixed Administrative Costs $160,000 Required:d) Calculate the margin of safety in units and in sales dollars. e) The President of Benoit is under pressure from shareholders to increase operating income by 50% in2020. Management expects per unit…
