xed costs ariable costs ermine for 2 variable cos
Q: In an agreement involving the right to acquire property, which of the following are conditions that…
A: Whenever an agreement to buy or sell property is entered into between the buyer and seller, a…
Q: How would you record this transaction in a journal entry? Accepted a sales return from Eastern for…
A: Journal entry is the reporting of the business transaction in the books of accounts. It is done to…
Q: Ron Marden and Tip Baker operate separate auto repair shops. On January 1, 2020, they decide to…
A: Jan 1st 2020 = Combing of two Proprietorship to one Partnership firm Expected Realizable value of…
Q: (1) Staff Authority is the authority to advise but not command others. (2) Staff authority is…
A: The staff authority is a type of authority in which the staff has the power to give assistance to…
Q: Provide Cash Receipts Journal
A: A cash receipt journal as the name clears about its functionality which is that only in it the…
Q: At the beginning of the year, Learer Company's manager estimated total direct labor cost to be…
A: Introduction: A predefined overhead rate is a rate assigned to cost items for a certain reporting…
Q: Angel De Jesus, a business graduate student who was working as a mere employee in a company called…
A: Accounting equation is one of the concept used in accounting, which says that total assets in the…
Q: Company sold accounts receivable without recourse for 6,100,000. The entity received 4,000,000 cash…
A: Introduction: Accounts receivable are funds owed to a seller by buyers who have yet to pay for their…
Q: Which of the following is not related to Opportunity costs? O None of the choices O Rental Income…
A: Opportunity cost is the next best cost. Means it is the loss of one alternative when we chosen…
Q: Margaret's Maid Service began the year with total assets of $133000 and stockholders' equity of…
A: Stockholders' equity: Stockholders' equity means the net assets available to shareholders after…
Q: PepsiCo, Inc., the parent company of Frito-Lay snack foods and Pepsi beverages, had the following…
A: 1) Current ratio = current assets ÷ current liabilities Current ratio for current year Current…
Q: Pro-Weave manufactures stadium blankets by passing the products through a weaving department and…
A: Calculation of transfer from weaving to sewing and sewing to finished goods , and record of journal…
Q: On January 2, 2023, Pina Inc. issued at par $9000 6% bonds convertible into 900 of its common…
A: Earnings per share is net amount of earnings available for each common shareholder. Diluted earnings…
Q: Exercise 2-8 (Algo) Applying Overhead Cost; Computing Unit Product Cost [LO2-2, LO2-3] Newhard…
A: Introduction: Actual costs for work are noted on a job cost sheet. To determine if work was fairly…
Q: On December 31, the following data were accumulated for preparing the adjusting entries for Flagship…
A: Adjusting Entries - Adjusting Entries are require to book income and expenses pertains to current…
Q: Prepare journal entries to record the following transactions for a retail store. The company uses a…
A: Perpetual inventory system is one of the inventory system being maintained in business. This says…
Q: 3. Burneside Corp.'s accounts receivable subsidiary ledger shows the following information: Customer…
A: (Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…
Q: QUESTION THREE A K100, 000 Treasury bill currently sells at 95% of its face value and is 65 days…
A: Treasury bills are used as short term investments in the business. Usually these are issued at…
Q: Tom Bond borrowed $6,200 at 5% for three years compounded annually. What is the compound amount of…
A: Time value of money concept says that after a period of time, value of money increases due to…
Q: Charlie Chaplin borrowed P100,000.00 on October 31 2019 from Mr. Beans and the loan has an interest…
A: Borrowing is defined as an action by which one individual temporarily borrows money from another…
Q: What is the purpose of the IASB's conceptual framework? Explain thoroughly.
A: Introduction: The Conceptual Framework outlines the core financial reporting ideas that will guide…
Q: Forming a limited liability company is one of the best ways to protect personal finances from…
A: LLC is one of the most versatile and flexible methods of business organisation which have features…
Q: The ledger of Sage Hill Rental Agency on March 31, 2024, includes the following selected accounts…
A: Adjusting entries are those which are recorded at the end of the period in order to make adjustments…
Q: The table below shows monthly data collected on production costs and on the number of units…
A: Note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three…
Q: A corporation's residual owners are the: Suppliers. Employees. Shareholders. Debt holders.…
A: Corporation is a form of business organization wherein many investors invest to run the business…
Q: a. What is the required allowance balance on December 31, 2018? b. Prepare the journal entry…
A: Accounts receivable refer to those customers of the business who have purchased the goods on credit…
Q: Oriole Works' uses a periodic inventory system. Its accounting records show the following as of…
A: The cost of goods purchased can be calculated by adding up the cost of goods purchased, freight in,…
Q: Question 4: Journalise the following transactions of John Wong for the month of May. Include in a…
A: Introduction: By far one of the most important skills to learn is keeping a notebook. Companies'…
Q: A plan sponsor failed nondiscrimination testing for the year 2019. What are possible resolutions…
A: Under Employee Retirement Income Security Act, all plans made for employees should maintain their…
Q: 1. Write the Ratio/ Equation to be used, IF REQUIRED 2. Substitute the given 3. Solution (Solve for…
A: Cash Flow From Operating Activities Cash Flow From Operating Activities are indicates the…
Q: Desmond Desmond makes a single product for which the standard cost card is as follows: £…
A: An accounting term known as operational income quantifies the amount of profit made from a company's…
Q: 1. Write the Ratio/ Equation to be used, IF REQUIRED 2. Substitute the given 3. Solution (Solve for…
A: ACCOUNT RECEIVABLE TURNOVER RATIO Accounts receivable turnover is described as a ratio of average…
Q: Describe the important properties of fixed assets?
A: Assets are the resources which are owned by an entity for the purpose operating day to day business…
Q: Problem 5-24 (Algorithmic) At the start of the current year, Blue Corporation (a calendar year…
A: calculation of dividend income , capital gain and stock basis are as follows
Q: On the first day of the fiscal year, a company issues a $3,300,000, 12%, 6-year bond that pays…
A: The bonds payable are the financial instruments that are used to raise money from the market or…
Q: a. Journalize the entry to record the payroll for the week of June 17. b. Journalize the entry to…
A: Introduction:- Journal entry is the first stage of accounting process. Journal entry used to record…
Q: Bretton Woods System
A: The Bretton Woods System is a set of unified rules and policies that were framed to provide the…
Q: On January 1, 2021, the Highlands Company began construction on a new manufacturing facility for its…
A: Interest capitalize: The unpaid interest on your loan is added to the principle sum, which is what…
Q: Tangent Company borrowed $100,000 from the bank signing an 8%, 6-month note on September 1.…
A: Interest expense refers to the amount that the lender charges from the company or individual at a…
Q: While meeting with a CPA, a new business owner finds out that the business is considered a…
A: A business entity is a set-up for doing business activities and every business has some goal vision…
Q: Sennett invests P40,000 for a 20 percent interest in a partnership that has capital totaling…
A: ADMISSION OF PARTNERS Partners are Continuing Business may, By Common Consent, Decide to admit a new…
Q: Warren Marina owns a large marina that contains numerous boat slips of various sizes. Warren…
A: While this was going on, the Lucky Fisherman Fleet signed a deal with the Warren marina to keep 4 of…
Q: Compute the selling price of 10%, 10-year bonds with a par value of $290,000 and semiannual interest…
A: Bonds are the securities which are issued in order to raise funds from the market. These are an…
Q: 1. Write the Ratio/ Equation to be used, IF REQUIRED 2. Substitute the given 3. Solution (Solve for…
A: Earnings per share :— It is calculated by dividing earnings for the common stockholders by number of…
Q: 3. Sales volume Selling price per unit Direct materials Direct labor Variable factory overhead Fixed…
A:
Q: The premium on a three-year insurance policy expiring on December 31, year 3, was paid in total on…
A: Introduction:- Prepaid expenses paid in advance.A prepaid expense is an asset reported on a balance…
Q: Why do most companies use normal or standard costing? After all, actual costing gives the actual…
A: The standard costing is a costing system that is used to estimate the expenses of the production…
Q: Solid Enterprises produces 2 models of computer tables: Executive and Office. Both models undergo…
A: Gross Profit :— It is the difference between sale value and cost of goods sold. Gross Profit…
Q: Shelley wants to cash in her winning lottery ticket. She can either receive fourteen, $200,000…
A: Time value of money :— According to this concept, value of money in present day is greater than the…
Q: Henriksen Co., which produces and sells biking equipment, is financed as follows: Bonds payable,…
A: Earnings per share on common stock: It is a financial ratio. It is calculated by dividing net…
Step by step
Solved in 3 steps
- Last year, Orsen Company produced 25,000 juicers and sold 26,500 juicers for 60 each. The actual variable unit cost is as follows: Fixed overhead was 320,000. Fixed selling expenses consisted of advertising copayments totaling 110,000. Fixed administrative expenses were 236,000. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was 148,000 for 4,000 juicers. The value of ending inventory reported on the financial statements was Refer to the information in 2.24. The gross margin percentage for last year was a. 12.57% b. 55.67% c. 28.95% d. 38.33%Last year, Orsen Company produced 25,000 juicers and sold 26,500 juicers for 60 each. The actual variable unit cost is as follows: Fixed overhead was 320,000. Fixed selling expenses consisted of advertising copayments totaling 110,000. Fixed administrative expenses were 236,000. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was 148,000 for 4,000 juicers. The value of ending inventory reported on the financial statements was a. 55,500 b. 92,500 c. 66,500 d. 39,900The following data were adapted from a recent income statement of Caterpillar Inc. (CAT) for the year ended December 31: Assume that 8,500 million of cost of goods sold and 4,000 million of selling, administrative, and other expenses were fixed costs. Inventories at the beginning and end of the year were as follows: Also, assume that 30% of the beginning and ending inventories were fixed costs. a. Prepare an income statement according to the variable costing concept for Caterpillar Inc. Round numbers to nearest million. b. Explain the difference between the amount of operating income reported under the absorption costing and variable costing concepts. Round numbers to nearest million.
- Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Refer to Exercise 2.21. Last calendar year, Ellerson recognized revenue of 1,312,000 and had selling and administrative expenses of 204,600. Required: 1. What is the cost of goods sold for last year? 2. Prepare an income statement for Ellerson for last year.Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings total annual fixed costs are 38,400. If operating income last year was 28,800, what was the number of units Starling sold? a. 4,800 b. 6,400 c. 5,600 d. 11,200Bradshaw Company reported sales of 5,000,000 in 20X1. At the end of the fiscal year (June 30, 20X1), the following quality costs were reported: Required: 1. Prepare a quality cost report. 2. Prepare a graph (pie chart or bar graph) that shows the relative distribution of quality costs, and comment on the distribution. 3. Assuming sales of 5,000,000, by how much would profits increase if quality improves so that quality costs are only 3% of sales?
- Evans Company had total sales of 3,000,000 for fiscal 20x5. The costs of quality-related activities are given below. Required: 1. Prepare a quality cost report, classifying costs by category and expressing each category as a percentage of sales. What message does the cost report provide? 2. Prepare a bar graph and pie chart that illustrate each categorys contribution to total quality costs. Comment on the significance of the distribution. 3. What if, five years from now, quality costs are 7.5 percent of sales, with control costs being 65 percent of the total quality costs? What would your conclusion be?Jellison Company had the following operating data for its first two years of operations: Jellison produced 90,000 units in the first year and sold 80,000. In the second year, it produced 80,000 units and sold 90,000 units. The selling price per unit each year was 12. Jellison uses an actual costing system for product costing. Required: 1. Prepare income statements for both years using absorption costing. Has firm performance, as measured by income, improved or declined from Year 1 to Year 2? 2. Prepare income statements for both years using variable costing. Has firm performance, as measured by income, improved or declined from Year 1 to Year 2? 3. Which method do you think most accurately measures firm performance? Why?At the end of the first year of operations, 21,500 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows: Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept and (b) the variable costing concept.
- When prices are falling (deflation), which costing method would produce the highest gross margin for the following? Choose first-in, first-out (FIFO); last-in, first-out (LIFO); or weighted average, assuming that B62 Company had the following transactions for the month. Calculate the gross margin for each of the following cost allocation methods, assuming B62 sold just one unit of these goods for $400. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month with the following unit costs: Fixed overhead per unit = 280,000/40,000 units produced = 7. Total fixed factory overhead is 280,000 per month. During October, 38,400 units were sold at a price of 24, and fixed marketing and administrative expenses were 130,500. Required: 1. Calculate the cost of each unit using absorption costing. 2. How many units remain in ending inventory? What is the cost of ending inventory using absorption costing? 3. Prepare an absorption-costing income statement for Pattison Products, Inc., for the month of October. 4. What if November production was 40,000 units, costs were stable, and sales were 41,000 units? What is the cost of ending inventory? What is operating income for November?Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects to sell 28,700 units at 32 each. Kallings controller provided the following information for the coming year: Required: 1. Calculate the cost of one unit of product under absorption costing. 2. Calculate the cost of one unit of product under variable costing. 3. Calculate operating income under absorption costing for next year. 4. Calculate operating income under variable costing for next year.