ulz - Chapter 6 iactivity/question-grouSavedHelp1Tami Tyler opened Tami's Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through itsfirst quarter of operations placed a considerable strain on Ms. Tyler's personal finances. The following income statement for the firstquarter was prepared by a friend who has just completed a course in managerial accounting at State University.Tami's Creations, Inc.Income StatementFor the Quarter Ended March 31Sales (28, 400 units)Variable expenses:Variable cost of goos soldVariable selling andladministrativeContribution marginFixed expenses:Fixed manufacturing overheadFixed selling and administrativeNet operating loss$1,136, 000$ 440, 200178, 920619, 120516, 880251, 200277,680528, 880$( 12,000)Ms. Tyler is discouraged over the loss shown for the quarter, particularly because she had planned to use the statement as support fora bank loan. Another friend, a CPA, insists that the company should be using absorption costing rather than variable costing andargues that if absorption costing had been used the company probably would have reported at least some profit for the quarter.At this point, Ms. Tyler is manufacturing only one product-a swimsuit. Production and cost data relating to the swimsuit for the firstquarter follow:Units producedUnits soldVariable costs per unit:Direct materialsDirect laborVariable manufacturing overheadVariable selling and administrative31, 40028, 400$ 7.60$ 6.00$ 1.90$ 6.30Prev1 of 5Next > HelpSave & ExitSubmU. VVIIOL IS ue CUmpal ny > ausuIPLIUII CUSLII Iy Tiel upeiau ny Ue Iuss) IUI Ie yuoI Le tc. Reconcile the variable and absorption costing net operating Income (loss) figures.3. During the second quarter of operations, the company again produced 31,400 units but sold 34,400 units. (Assume no change intotal fixed costs.)a. What is the company's variable costing net operating income (loss) for the second quarter?b. What is the company's absorption costing net operating income (loss) for the second quarter?c. Reconcile the variable costing and absorption costing net operating incomes for the second quarter.Check my workComplete this question by entering your answers in the tabs below.Req 1AReg 1BReq 1CReq 3AReq 3BReq 3CWhat is the company's absorption costing net operating income (loss) for the quarter? (Round your intermediate calculationsto 2 decimal places.)Tami's Creations, Inc.Absorption Costing Income StatementTotalSales834,900Cost of goods sold(667,400)Gross margin167,500Selling and administrative expenses(178,920)Net operating income (loss)< Req 1AReq 10 >Prev1 of 5Next >DELL

Solution: - Calculation of unit cost under absorption costing Calculation of unit cost under…

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What is the company's absorption costing net operating income (loss) for the quarter? (Round your

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter2: Financial Statements And The Annual Report

Section: Chapter Questions

Problem 2.1P: Materiality Joseph Knapp, a newly hired accountant wanting to impress his boss, stayed late one...

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The transactions completed by PS Music during June 2016 were described at the end of Chapter 1. The following transactions were completed during July, the second month of the businesss operations: July 1. Peyton Smith made an additional investment in PS Music by depositing 5,000 in PS Musics checking account. 1. Instead of continuing to share office space with a local real estate agency, Peyton decided to rent office space near a local music store. Paid rent for July, 1,750. 1. Paid a premium of 2,700 for a comprehensive insurance policy covering liability, theft, and fire. The policy covers a one-year period. 2. Received 1,000 on account. 3. On behalf of PS Music, Peyton signed a contract with a local radio station, KXMD, to provide guest spots for the next three months. The contract requires PS Music to provide a guest disc jockey for 80 hours per month for a monthly fee of 3,600. Any additional hours beyond 80 will be billed to KXMD at 40 per hour. In accordance with the contract, Peyton received 7,200 from KXMD as an advance payment for the first two months. 3. Paid 250 on account. 4. Paid an attorney 900 for reviewing the July 3 contract with KXMD. (Record as Miscellaneous Expense.) 5. Purchased office equipment on account from Office Mart, 7,500. 8. Paid for a newspaper advertisement, 200. 11. Received 1,000 for serving as a disc jockey for a party. 13. Paid 700 to a local audio electronics store for rental of digital recording equipment. 14. Paid wages of 1,200 to receptionist and part-time assistant. Enter the following transactions on Page 2 of the two-column journal: July 16. Received 2,000 for serving as a disc jockey for a wedding reception. 18. Purchased supplies on account, 850. 21. Paid 620 to Upload Music for use of its current music demos in making various music sets. 22. Paid 800 to a local radio station to advertise the services of PS Music twice daily for the remainder of July. 23. Served as disc jockey for a party for 2,500. Received 750, with the remainder due August 4, 2016. 27. Paid electric bill, 915. 28. Paid wages of 1,200 to receptionist and part-time assistant. 29. Paid miscellaneous expenses, 540. 30. Served as a disc jockey for a charity ball for 1,500. Received 500, with the remainder due on August 9, 2016. 31. Received 3,000 for serving as a disc jockey for a party. 31. Paid 1,400 royalties (music expense) to National Music Clearing for use of various artists music during July. 31. Withdrew 1,250 cash from PS Music for personal use. PS Musics chart of accounts and the balance of accounts as of July 1, 2016 (all normal balances), are as follows: Instructions 1. Enter the July 1, 2016, account balances in the appropriate balance column of a four-column account. Write Balance in the Item column, and place a check mark () in the Posting Reference column. (Hint: Verify the equality of the debit and credit balances in the ledger before proceeding with the next instruction.) 2. Analyze and journalize each transaction in a two-column journal beginning on Page 1, omitting journal entry explanations. 3. Post the journal to the ledger, extending the account balance to the appropriate balance column after each posting. 4. Prepare an unadjusted trial balance as of July 31, 2016.
Case 1-74 Comparative Analysis: Under Armour, lnc., versus Columbia Sportswear Refer to the 10-K reports of Under Armour, Inc., and Columbia Sportswear that are available for download from the companion website at CengageBrain.com Required: Answer the following questions: What is managements assessment of each companys past performance and future prospects? Where did you find this information?
T Account entries for Simple Construction:Bob Simple graduated from the BCIT Construction Management Program and decided to start his own construction company. We will record various entries that might be made in a T account sheet in order to account for his second year of operations. At the end of the first year, his income statement and balance sheet havethe following values:Balance Sheet Entries for Last Year:Cash: 365,000Accounts Receivable: $17,000Materials Inventory: $2000Equipment: $15,000Accumulated Amortization: $500Accounts Payable: $22,000Bank Loan –Long Term: $10,000Dividend Payable: $35,000Interest Payable: $500Wages Payable: $5,000Common Stock: $250,000Retained Earnings: $76,000Income statement Final Entries for Last Year:Revenue: $145,000Materials Expense: $20,000Wages Expense: $10,000Amortization Expense: $500Rental Expense: $2,500Interest Expense: $1000Net Income: $111,000 Question 1a.Enter the relevant amounts in the T sheet to start the current year, and designate…
Question 5Sammi started her business on 1 January 2021 called Trendy. You are required toprepare the GENERAL JOURNAL for the following transactions of Trendy for the first month of operations. Narratives are not required for each journal entry. Jan01 Sammi invested RM50, 000 cash into the business. Jan02 Trendy purchased used motor vehicle for RM20,000. Jan08 Trendy paid rent for RM4, 000. Jan08 Trendy completed work for a client and immediately received RM15, 000. Jan12 Sammi signed a RM50,000 small business loans with CIMB Bank under Trendy’sname. Jan15 Ideal Homes renovated and installed fixtures and fittings at a cost of RM3, 000.Trendy will pay the bill at a later date. Jan15Trendy paid RM1, 000 cash for advertisement in a local magazine. Jan28Trendy completed work for another client on credit and invoiced the client RM5, 000.The client is allowed to settle the bill within 30 days. Jan30Trendy paid Ideal Homes that installed the fixtures and fittings earlier. Jan30Trendy paid…
Dj 2 accounting I need help with question 2 and 3 if anyone can help would be much appreicatyed E-SCOOTER Ltd You are the recently appointed accountant at E-SCOOTER Ltd a new company, which will be incorporated on 1st Sept 2022. Initially, the company will manufacture and sell a single electronic product used in the production of drones. The following details relate to the company’s first financial year: The selling price is £300 per unit. Direct materials cost £85 per unit Direct labour is 6 hours per unit for the first 2 months, reducing to 5 hours per unit thereafter. Direct labour cost £13 per hour Sales targets for the forthcoming financial year are as follows: Units Sept 2022 1,200 Oct 1,400 Nov 1,500 Dec 1,900 Jan 2023 2,000 Feb 2,000 Mar 2,100 Apr 2,200 May 2,000 Jun 1,800 Jul 1,800 Aug 1,900 85% of sales will be on credit terms, with customers paying two months later. The remaining sales are paid for immediately. Closing inventory is planned to be 10% of…
Question 4Sammi started her business on 1 January 2021 called Trendy. You are required to prepare the GENERAL JOURNAL for the following transactions of Trendy for the first month of operations. Narratives are not required for each journal entry.Jan 01Sammi invested RM50, 000 cash into the business.Jan 02Trendy purchased used motor vehicle for RM20,000.Jan 08Trendy paid rent for RM4, 000.Jan 08Trendy completed work for a client and immediately received RM15, 000.Jan 12Sammi signed a RM50,000 small business loans with CIMB Bank under Trendy’s name.Jan 15Ideal Homes renovated and installed fixtures and fittings at a cost of RM3, 000. Trendy will pay the bill at a later date.Jan 15Trendy paid RM1, 000 cash for advertisement in a local magazine.Jan 28Trendy completed work for another client on credit and invoiced the client RM5, 000. The client is allowed to settle the bill within 30 days.Jan 30Trendy paid Ideal Homes that installed the fixtures and fittings earlier.Jan 30Trendy paid RM150…
multiple choice question The business hires an office manager at $700 a week. The immediate effect on the accounting equation is to: increase equity by $700 and decrease the asset cash by $700. decrease the asset cash by $700 and decrease equity by $700. no effect as this is not a business transaction. increase wages by $700 and decrease equity by $700.
Required information Exercise 13-10A (Algo) Recording supplies and identifying their effect on financial statements LO 13-1, 13-3, 13-4 Skip to question [The following information applies to the questions displayed below.] Sye Chase started and operated a small family architectural firm in Year 1. The firm was affected by two events: (1) Chase provided $15,300 of services on account, and (2) he purchased $3,200 of supplies on account. There were $850 of supplies on hand as of December 31, Year 1. Exercise 13-10A (Algo) Part a, b, and e Required a. b. & e. Record the two transactions in the T-accounts. Record the required year-end adjusting entry to reflect the use of supplies and the required closing entries. Post the entries in the T-accounts and prepare a post-closing trial balance. Note: Select "a1, a2, or b" for the transactions in the order they take place. Select "cl" for closing entries. If no entry is required for a transaction/event, select "No journal entry…
News story quiz chapter 2 · ACCOUNTING RULES Remember the news story at the beginning of chapter 2? Go back to that story and reread it before answering the following questions. This news story deals with two companies (Capita and W S Atkins) both of whom are involved in the construction industry. If a contract takes longer than one year to complete, at what point should the company take any expected profit? A prudent approach would be to wait until the contract has finished. A highly imprudent one would be to take all the expected profit when the contract was signed. The accountancy profession’s answer is to take some profit on account provided certain conditions are met. Questions 1 What do you think the directors of Capita mean when they state that they have exceeded the requirements of various accounting standards?
profile-image Time remaining: 00 : 09 : 41 Accounting Jeff Andringa, a former university hockey player, started Ice Camp Ltd., a hockey camp for children from ages6 to 16. Eventually he would like to expand and open hockey camps across the country. Jeff has asked you to help him prepare financial statements at the end of his first year of operations. He tells you the following facts about his business activities. In order to get the business off the ground, he decided to incorporate. On January 3, 2018, he incorporated Ice Camp Ltd. paying $5,000 in exchange for 500 common shares. The company subsequently borrowed $10,000 from a local bank. A used bus for transporting kids was purchased for $12,000 cash. Hockey nets and other miscellaneous equipment were purchased with $1,500 cash. The company earned camp tuition of $100,000 during the year but has collected only $90,000 of this amount far. Thus, at the end of the year the company was still owed $10,000 by some of its clients. The…
SCENARIO 7.3: Upon graduating with an accounting degree, you open your own accounting firm of which you are the sole employee. To start the firm you passed on a job offer with a large accounting firm that offered you a salary of $60,000 anually. Last year you earned a total revenue of $100,000. Rent and supplies last year were $50,000.12) Refer to Scenario 7.3. Your annual economic costs areA) $110,000. B) $60,000. C) $50,000. D) $0
Final Exam Review for ACC100 1) know the difference between a service business and a manufacturing business. 2) What does journalizing mean? 3) Know what Accounts Payable is 4) What is a T account 5) How many accounts are affected by each transaction 6) What is posting 7) Do adjusting entries have to be posted? 8) What is in the Income Statement column on the 10-column worksheet 9) How do you close an expense account 10) What is a sole proprietorship, a partnership, and a corporation 11)What is net income 12) What entry is made when a sale on account is made 13) What is a trial balance 14) What does it mean when a transaction is in balance 15) What are source documents 16)What is the journal used for? 17) How many accounts will a journal entry have an effect on? 18) Adjusting entries never affect which account 19) What is the basic equation 20) What does summarizing mean? 21) What does net loss mean? 22) Understand WIRE 23) Which financial statement will you find liabilities? 24) If…