You are required to develop a computer-based income and balance statement.
Q: Benz work
A: In this question, we have to calculate the latter’s compensation income it is a taxable income…
Q: On January 1, 2019, Penn Incorporated paid $350,000 for 70% of Sylvania Company's outstanding…
A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…
Q: Solar Co. sold a machine in exchange for a P00.000, 4-year, 5% note, interest is payable annually.…
A: The question is based on the concept of Financial Management.
Q: Dominador's Pizza Inc. enters into a franchise agreement on December 31, 20x7 giving Doming Corp.…
A: Answer - Part 8 - Correct Option is Option - A Zero . Because, As of December 31, 20x7, Revenue…
Q: Omega Company prepared an aging of accounts receivable on December 31, 2018 and determined that the…
A: Ending Allowance for uncollectible accounts balance = Ending accounts receivable - ending net…
Q: er, the minimum order size is 250 units; Webster's annual usage forecast is 5,000 units; and the…
A: Economic order quantity is the order quantity at which there is minimal inventory carrying cost and…
Q: Why do unions that have few or no minimum wage workers work to raise the minimum wage? O To drive as…
A: Wages When a payment is made for the work done to an employee by the employer is known as a wage…
Q: Sales in Units 50,000 75,000 90,000 80,000 = of preparing a production budget for the: n that…
A: Production budget calculates the number of units to be produced in a period . It based on budgeted…
Q: The transactions pertaining to Cash were taken from the books of ABC Company for the year 2021:…
A: Cash flow from operating activities is calculated using Direct method in this question. Under direct…
Q: Your Company's standards call for 1.85 hours per unit. The company planned to produce 900 units…
A: Standard hour allowed for may production is used to calculate variance. The variance is considered…
Q: On December 31, 2020, Sack Port Ventures Inc. borrowed $103,000 by signing a four-year, 8.0%…
A: Installment Notes is an Financial instrument which is used to borrow money from financial…
Q: The following data are accumulated by Lone Peak Inc. in evaluating two competing capital investment…
A: Average rate of return = Average annual income / Amount of investment where, Average annual income…
Q: Suppose a bond manager owns $5 million par value of bond X which trades at $70, has a modifhed…
A: Bonds are considered as a debt security under which the issuer owns the holders a debt and depending…
Q: Below are amounts for two companies: Beginning Ending net sales Accounts…
A: The question is based on the concept of Financial Ratios.
Q: The franchise revenue on December 31,20x7 should be: a. None b. P195,000 c. P 975,000 d. P1,160,250…
A: As per our protocol we provide solution to the one question only but as you have asked two multiple…
Q: The following are the income of a resident citizen for the period: Interest Income from an…
A:
Q: Caribbean. prs a define
A: Notes : According to Generally Accepted Accounting Principles (GAAP), net pension spending in the…
Q: Unlimited Doors showed supplies available during the year of $1,700. A count of the supplies on hand…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: [The following information applies to the questions displayed below.] In 2021, Elaine paid $2,800 of…
A: American Opportunity Tax Credit: The American Opportunity Tax Credit (AOTC) is a tax credit that…
Q: 5. Aircon, Inc. consigned ten one-horsepower air conditioning units to Argy Trading and paid P2,000…
A:
Q: rue or False. 1. The heading on each financial statement lists the three W’s- Who (the name of the…
A: Each and every type of company makes its financial statements irrespective of its size and the…
Q: Definition of the following in Accounting 1. Amortization of Franchise Give an Examples of…
A: Intangible Assets: Intangible asset is one of the component of fixed assets reported in company's…
Q: 2. Which of the following statements is FALSE? A. Current liabilities are expected to be settled…
A: Note: As per the Policy, We’ll answer the first question since the first question seems to be…
Q: he next fiscal year. Expenditures—Capital…
A: A journal entry is the act of recording or keeping track of any financial or non-financial action.…
Q: QUESTION 1 Which of the following is a for AGI deduction? O Traditional IRA contribution Property…
A: Home mortgage interest expense is for AGI deduction.
Q: How do financial markets help businesses? 2.How do financial markets help us (individuals) ?…
A: Financial markets are where financial products are bought and sold by (or through) financial…
Q: sensitivity analysis
A: The sensitivity analysis represents the more reliable source of prediction. It helps the managers to…
Q: xed. Mesa Verde is considering staining and sealing the table to sell it for $100. Unit variable…
A: Cost: In accounting, the cost is related to monetary value spend on raw material, services, and…
Q: Total Labor VarianceRefer to the information for Tico Inc. on the previous page.Required:Calculate…
A: Calculation of Total labor variance Total Labor Variance = Standard labor cost allowed to produce…
Q: During a recent week, Charlie Scott works 37 regular hours. He earns $9/hour and contributes 3% of…
A: Taxable income is the portion of your gross income that the IRS deems subject to taxes. It consists…
Q: Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold…
A: The variation in the amount of actual revenue and flexible budget revenue is known as revenue…
Q: 4. Blassie Incorporated sells scented candles, generally in bulk to retail stores. During December…
A:
Q: a two-bedroom $650 apartment to a cond Dwns two golf courses, a lake and an activ ses include:
A: Personal Cash flow statement reflects the cash inflows and outflows of an individual in order to…
Q: On Jan 5th, 2021, Issue 20,000 common shares at $11 each (100,000 authorized & $2 par value) to Jack…
A: Journal entry is a process of recording and classifying business transactions into books of accounts…
Q: $1,000 in exp e depreciatie
A: Part A Initial Cost of Equipment +Overhead= $20000 Initial cost of equipment after tax= $25600…
Q: 4/2 Purchased three computers and a printer from Best Buy for $2,000 how to solve this problem? with…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Identify two parties other than Ramos who can be harmed by this theft. In what ways can they be…
A: Steve Ramos owns apartment buildings in Baguio City, and Tagaytay City. Each property has a manager…
Q: 5 Hello, can someone make a pay off metrix for this? The situation is that an athlete is following…
A: If the athlete chooses to use illegal substances to enhance performance ability, they lose their…
Q: hassignment No. 2 Recording Transactions in a Financial Transaction Worksheet Nelson Daganta formed…
A:
Q: Domingo Corporation uses the weighted-average method in its process costing system. This month, the…
A: Solution... Beginning inventory + units started in - units completed and transferred out. = 1,800…
Q: Allowance for Bad 12,600 Prepaid Advertising 12,000 Debts Service Income 500,000 Salaries Expense…
A: The financial statements of the business includes the income statement and balance sheet of the…
Q: Icon Company provided the following data for the current year: Sales on account Notes received to…
A: Under double entry system of bookkeeping one account is debited and other is credited. 1. Revenue…
Q: X wishes to file his 2019 income tax return. To avoid penalty, he must file his return on or before:…
A: For individuals, income tax return filing due date when their financial year ends on December 31 is…
Q: Shannon's income tax rate was 25% in 2021 and previous years. During the course of the audit, the…
A: Fair value adjustment Investment balance as reported(Assumed) 250000 Error adjustment 40000…
Q: What will be the value of the general receivables provision? £ 906 What will be the irrecoverable…
A: Balance at receivable in account at the year end £ 54,500 Special Provision of 9200…
Q: 3. Al-Busthan corporation has a year end of 31 December. The company has in issue 400,000 Ordinary…
A: GIVEN DATA Al-Busthan corporation has a year end of 31 December. The company has in issue…
Q: Question 7: What is the highest number of withholding allowances an employee using the wage-bracket…
A: Withholding allowance is a type of exemption that allow the employee to save a certain amount of…
Q: During the 2022 ending inventory count, Sungjae Im miscounts ending inventory and determines that he…
A: With overstated beginning inventory, the cost of goods sold is also overstated. With overstated cost…
Q: ABC Company, a computer repair shop provided the following information at the end of its first month…
A: The income statement shows the net income or net loss that is calculated by deducting the expenses…
Q: Consider the statement: Accounting is a measurement and communication discipline. Evaluate the…
A: Accounting Principles: Accounting principles are the principles and rules that organizations should…
You are working as a non-
Description: Amount:
Budget Sales R650.000
Less, direct cost:
Cost of materials R210.000
Direct labour R165.000
Indirect costs R105.000
Other general
Net Budget Profit: R120.000
You are required to develop a computer-based income and balance statement. The income and balance sheet must have the necessary notes and disclosures. Adjust the figures in terms of the following: Income out of direct sales - R800 000.00; Income out of after-sales, customer services - R150 000.00; Owners Equity - R250 000.00
Step by step
Solved in 2 steps
- Cold X, Inc. uses this information when preparing their flexible budget: direct materials of $2 per unit, direct labor of $3 per unit, and manufacturing overhead of $1 per unit. Fixed costs are $35,000. What would be the budgeted amounts for 20,000 and 25,000 units?Novo, Inc., wants to develop an activity flexible budget for the activity of moving materials. Novo uses eight forklifts to move materials from receiving to stores. The forklifts are also used to move materials from stores to the production area. The forklifts are obtained through an operating lease that costs 18,000 per year per forklift. Novo employs 25 forklift operators who receive an average salary of 50,000 per year, including benefits. Each move requires the use of a crate. The crates are used to store the parts and are emptied only when used in production. Crates are disposed of after one cycle (two moves), where a cycle is defined as a move from receiving to stores to production. Each crate costs 1.80. Fuel for a forklift costs 3.60 per gallon. A gallon of gas is used every 20 moves. Forklifts can make three moves per hour and are available for 280 days per year, 24 hours per day (the remaining time is downtime for various reasons). Each operator works 40 hours per week and 50 weeks per year. Required: 1. Prepare a flexible budget for the activity of moving materials, using the number of cycles as the activity driver. 2. Calculate the activity capacity for moving materials. Suppose Novo works at 80 percent of activity capacity and incurs the following costs: Prepare the budget for the 80 percent level and then prepare a performance report for the moving materials activity. 3. Calculate and interpret the volume variance for moving materials. 4. Suppose that a redesign of the plant layout reduces the demand for moving materials to one-third of the original capacity. What would be the budget formula for this new activity level? What is the budgeted cost for this new activity level? Has activity performance improved? How does this activity performance evaluation differ from that described in Requirement 2? Explain.Firenza Company manufactures specialty tools to customer order. Budgeted overhead for the coming year is: Previously, Sanjay Bhatt, Firenza Companys controller, had applied overhead on the basis of machine hours. Expected machine hours for the coming year are 50,000. Sanjay has been reading about activity-based costing, and he wonders whether or not it might offer some advantages to his company. He decided that appropriate drivers for overhead activities are purchase orders for purchasing, number of setups for setup cost, engineering hours for engineering cost, and machine hours for other. Budgeted amounts for these drivers are 5,000 purchase orders, 500 setups, and 2,500 engineering hours. Sanjay has been asked to prepare bids for two jobs with the following information: The typical bid price includes a 40 percent markup over full manufacturing cost. Required: 1. Calculate a plantwide rate for Firenza Company based on machine hours. What is the bid price of each job using this rate? 2. Calculate activity rates for the four overhead activities. What is the bid price of each job using these rates? 3. Which bids are more accurate? Why?
- TIB makes custom guitars and prepared the following sales budget for the second quarter It also has this additional information related to its expenses: Direct material per unit $55, Direct labor per hour 20, Variable manufacturing overhead per hour 3.50, Fixed manufacturing overhead per month 3,000, Sales commissions per unit 20, Sales salaries per month 5,000, Delivery expense per unit 0.50, Utilities per month 4,000. Administrative salaries per month 20,000, Marketing expenses per month 8,000, Insurance expense per month 11,000, Depreciation expense per month 9,000. Prepare a sales and administrative expense budget for each month in the quarter ended June 30. 2018.Computing unit costs at different levels of production French Fragrances, Ltd. budgeted for 12,000 bottles of perfume Belle during May. The unit cost of Belle was $20, consisting of direct materials, $7; direct labor, $8; and factory overhead, $5 (fixed, $2; variable, $3). What would be the unit cost if 10,000 bottles were manufactured? (Hint: You must first determine the total fixed costs.) What would be the unit cost if 20,000 bottles were manufactured? Explain why a difference occurs in the unit costs.Jillian Manufacturing Inc. manufactures a single product and uses a standard cost system. The factory overhead is applied on the basis of direct labor hours. A condensed version of the company’s flexible budget follows: The product requires 3 lb of materials at a standard cost of $5 per pound and 2 hours of direct labor at a standard cost of $10 per hour. For the current year, the company planned to operate at the level of 6,250 direct labor hours and to produce 3,125 units of product. Actual production and costs for the year follow: Required: For the current year, compute the factory overhead rate that will be used for production. Show the variable and fixed components that make up the total predetermined rate to be used. Prepare a standard cost card for the product. Show the individual elements of the overhead rate as well as the total rate. Compute (a) standard hours allowed for production and (b) under- or overapplied factory overhead for the year. Determine the reason for any under- or overapplied factory overhead for the year by computing all variances, using each of the following methods: Two-variance method Three-variance method (appendix) Four-variance method (appendix)
- Krouse Company produces two products, forged putter heads and laminated putter heads, which are sold through specialty golf shops. The company is in the process of developing itsoperating budget for the coming year. Selected data regarding the companys two products areas follows: Manufacturing overhead is applied to units using direct labor hours. Variable manufacturing overhead Ls projected to be 25,000, and fixed manufacturing overhead is expected to be15,000. The estimated cost to produce one unit of the laminated putter head is: a. 42. b. 46. c. 52. d. 62.Hatch Manufacturing produces multiple machine parts. The theoretical cycle time for one of its products is 65 minutes per unit. The budgeted conversion costs for the manufacturing cell dedicated to the product are 12,960,000 per year. The total labor minutes available are 1,440,000. During the year, the cell was able to produce 0.6 units of the product per hour. Suppose also that production incentives exist to minimize unit product costs. Required: 1. Compute the theoretical conversion cost per unit. 2. Compute the applied conversion cost per minute (the amount of conversion cost actually assigned to the product). 3. Discuss how this approach to assigning conversion cost can improve delivery time performance. Explain how conversion cost acts as a performance driver for on-time deliveries.Douglas Davis, controller for Marston, Inc., prepared the following budget for manufacturing costs at two different levels of activity for 20X1: During 20X1, Marston worked a total of 80,000 direct labor hours, used 250,000 machine hours, made 32,000 moves, and performed 120 batch inspections. The following actual costs were incurred: Marston applies overhead using rates based on direct labor hours, machine hours, number of moves, and number of batches. The second level of activity (the right column in the preceding table) is the practical level of activity (the available activity for resources acquired in advance of usage) and is used to compute predetermined overhead pool rates. Required: 1. Prepare a performance report for Marstons manufacturing costs in the current year. 2. Assume that one of the products produced by Marston is budgeted to use 10,000 direct labor hours, 15,000 machine hours, and 500 moves and will be produced in five batches. A total of 10,000 units will be produced during the year. Calculate the budgeted unit manufacturing cost. 3. One of Marstons managers said the following: Budgeting at the activity level makes a lot of sense. It really helps us manage costs better. But the previous budget really needs to provide more detailed information. For example, I know that the moving materials activity involves the use of forklifts and operators, and this information is lost when only the total cost of the activity for various levels of output is reported. We have four forklifts, each capable of providing 10,000 moves per year. We lease these forklifts for five years, at 10,000 per year. Furthermore, for our two shifts, we need up to eight operators if we run all four forklifts. Each operator is paid a salary of 30,000 per year. Also, I know that fuel costs about 0.25 per move. Assuming that these are the only three items, expand the detail of the flexible budget for moving materials to reveal the cost of these three resource items for 20,000 moves and 40,000 moves, respectively. Based on these comments, explain how this additional information can help Marston better manage its costs. (Especially consider how activity-based budgeting may provide useful information for non-value-added activities.)
- Refer to Exercise 8.27. At the end of the year, Meliore, Inc., actually produced 310,000 units of the standard model and 115,000 of the deluxe model. The actual overhead costs incurred were: Required: Prepare a performance report for the period. In an attempt to improve budgeting, the controller for Meliore, Inc., has developed a flexible budget for overhead costs. Meliore, Inc., makes two types of products, the standard model and the deluxe model. Meliore expects to produce 300,000 units of the standard model and 120,000 units of the deluxe model during the coming year. The standard model requires 0.05 direct labor hour per unit, and the deluxe model requires 0.08. The controller has developed the following cost formulas for each of the four overhead items: Required: 1. Prepare an overhead budget for the expected activity level for the coming year. 2. Prepare an overhead budget that reflects production that is 10 percent higher than expected (for both products) and a budget for production that is 20 percent lower than expected.Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead costs per month include supervision of 98,000, depreciation of 76,000, and other overhead of 245,000. Required: 1. Prepare a flexible budget for all costs of production for the following levels of production: 160,000 units, 170,000 units, and 175,000 units. 2. What is the per-unit total product cost for each of the production levels from Requirement 1? (Round each unit cost to the nearest cent.) 3. What if Nashler Companys cost of maintenance rose to 0.22 per unit? How would that affect the unit product costs calculated in Requirement 2?Aspen Enterprises makes award pins for various events. Budget information regarding the current period is: A fraternity with which Aspen has a long relationship approached Aspen with a special order for 6,000 pins at a price of $2.75 per pin. Variable costs will be the same as the current production, and the special order will not impact the rest of the companys orders. However, Aspen is operating at capacity and will incur an additional $5,000 in fixed manufacturing overhead if the order is accepted. Based on this information, what is the differential income (loss) associated with accepting the special order?
