Question 1
Problem 1.Determining sales and variable cost volume variances Todhunter Publications established the following standard price and costs for hardcover picture book that the company produces. Standard price and variable: Sales price $36.00 Materials 9.00 Labor 4.50 Overhead 6.30 General, selling, and administrative 7.20 Planned fixed costs: Manufacturing $135,000 General, selling, and administrative 54,000 Todhunter planned to make and sell 30,000 copies of the book. Required a. Prepare the pro forma income statement that would appear in the master budget. b. Prepare flexible budget income statements, assuming volumes of 29,000 and 31,000 units c. Determine the sales and variable cost volume variances, assuming volume is actually 31,000 units. d. Indicate whether the variance are favorable (F) or unfavorable (U) e. Comment on how Todhunter could use the variances to evaluate performance. Problem2. Determining and interpreting flexible budget variances Use the standard price and cost data supplied in Problem above. Assume that Todhunter actually produced and sold 31,000 books. The actual sales price and costs incurred follow. Actual price and variable costs: Sales price $35.00 Materials 9.20 Labor 4.40 Overhead 6.35 General, selling, and administrative 7.00 Planned fixed costs: Manufacturing $120,000 General, selling, and administrative 60,000 Required a. Determine the flexible budget variances. b. Indicate whether each variance is favorable (F) or (U). c. Identify the management position responsible for each variance. Explain what could have caused the variance Problem 3. Flexible budget planning Luke Chou, the president of Digitech Computer Services needs your help. He wonders about the potential effects on the firm?s net income if he changes the service rate that the firm charges its customers. The following basic data pertain to fiscal year 2012. Standard rate and variable costs: Service rate per hour $80.00 Labor 40.00 Overhead 7.20 General S&A 4.30 Expected fixed costs: Facility repair $525,000.00 General S&A 150,000.00 Required. Prepare the pro forma income statement that would appear in the master budget if the firm expects to provide 30,000 hours of services in 2012. A marketing consultant suggests to Mr. Chou that the service rate may affect the number of service hours that the firm can achieve. According to the consultant?s analysis, if Digitech charges customers $75 per hour, the firm can achieve 38,000 hours of services. Prepare a flexible budget using the consultant?s assumption. The same consultant also suggests that if the firm raises its rate to $85 per hour, the number of service hours will decline to 25,000. Prepare a flexible budget using the new assumption. Evaluate the three possible outcomes you determined in Requirements a, b, and c and recommend a pricing strategy.
Question 2
1.The following data represent the actual amount of soda in a sample of fifty 2-liter bottles. You are in charge of production and must assure that the bottles don't have too much or too little in them. At the 0.05 level of significance, is there evidence to suggest that the mean amount of soda filled is different from 2.0 liters? Q-1a: State the null hypothesis. Q-1b: State the alternate hypothesis. Q-1c: Perform the hypothesis test and state your conclusions and evidence. Suppose you didn't care if the bottles had too much, you only cared if the quantity in the bottles was less than 2.0 liters. Q-1d: State the new null hypothesis. Q-1e: State the new alternative hypothesis. Q-1f: Perform the hypothesis test and state your conclusions and evidence. 2.Late payment of medical claims can add to the cost of health care. The auditing firm of Dewey, Cheatham, and Howe has discovered that for one insurance company, 85.1% of the claims were paid in full when first submitted based on a sample of 200 claims. Suppose that the insurance company developed a new payment system in an effort to increase this percentage. A sample of 200 claims processed under this new system revealed that 180 of the claims were paid in full when first submitted. At the 5% level of significance, is there evidence that the population proportion of claims paid in full under this new system is higher than the proportion of claims paid in full under the old system? Q-2a: State the null hypothesis Q-2b: State the alternative hypothesis. Q-2c: Perform the hypothesis test and state your conclusions and evidence. See attached for further details.,Ok, thank you.
Question 3
PLease assist me with completing this series of take home questions!,PLease assist me with these four questions, the instructions are outlined on the Excel file and each question requires that you show the calculations (if any) by inseting the formulas into Excel as such, each question is on a different worksheet in this workbook The sooner you can get back to me the better~!,PLease verify which document I sent you and the amount pledged to complete such,PLease verify which document I sent you and the amount pledged to complete such,OK- thanks a bunch, I must have forgotten to attach the other file; it has like nineteen multiple choice questions and is fairly straightforward, I was assumiung that you would do them both * a total of 23 questions for $30? I attached herein, i did one already just select the correct answerf from the multiple choice selections by highlighting it in yellow for me, THANKS!,I realize I forgot to attach the Word document when I initially sent the request for assistance however: I am waiting for your confirmation... Can you handle the assignment as amended from the intial presentation when I neglected to attach the mnultiple choice portion,I forgot to attach the file complement, (a word document) attached herin. My intial offer of $30 was based on the completion of the entire assignment (two parts). As it is, one attachment is all that you can send per message. The first part of the assignment, (Excel file w/ 4 questions)was sent with the iuntial contract. The complement file is attached herin and contains no more than twenty multiple choice questions (actually 19 as I completed one already) Total work should require less than thirty minutes. Nultiple choice questions: just highlight the best answer in yellow. Please confirm that you can handle this entire assignment by noon on June 10, 2012.,Still awaiting a reply,To cpmmunicate with me going forward, please send all email messages to dmmcmaho@hotmail.com,here is the next assignment, p[lease respond to dmmcmaho@hotmail.com,PLease respond with your progress on the intial attachment: "Questions for CourseHero I ~06_10_12.xls",PLease respond with the initial document answers as discussed on 06/08/12: the excel document is still not finished and the word document you sent me had FIVE INCORRECT RESPONSES ON IT! I reattached the original excel document in question as it is still incomplete and remains unfinished!,Outstanding, the last one you completed was 100% accurate. However, the multiple choice questions were only 75% accurate, NOT GOOD as I submitted most of the work after review and I did find concerns with at least three of the five that were incorrect. Next time we will do better? YES WE WILL you are the greatest assistant in the entire academic woirld! You rule! Thanks!!,Absolutely, no worries on the incorrect answers though, not everyone is perfect and the wording she applied to that multiple choice refview was fairly manipoulative in nature, I mean presenting all the different possible response that may be accurate in a gioven scenatrio as likely choices within a single quewstion is in my opinion, manipulating the examanation of the respondant's conceptualization of the theory in question. Just shoot straight and cut threough all the games you know? SE la vie~!
Question 4
survey of Accounting_Problems Problem 1. Define the following principles, concepts and terminology. Give an example of each: Matching Cost Conservatism Entity Going Concern Depreciation Breakeven Variable cost 2. Under the balance sheet classification of property, plant, and equipment, some accounts need ad at the end of each month and others do not. Which do and why? Which do NOT and why? 3. Classify the following items as: a. accrued revenue (accrued asset) b. deferred revenue (unearned revenue) c. accrued expense (accrued liability) d. deferred expense (prepaid expense) (1) Three months' rent paid in advance (2) Rental income for six months received in advance (3) Jobs completed but not yet billed at month-end (4) Interest payable accrued on a note, but not yet paid (5) Telephone bill owed but not yet paid (6) A three-year premium paid on auto fleet insurance policy 4. Details of invoices for purchases of merchandise are as follows: Merchandise Transportation Terms Returns and Allowances a. $1,000 $25 FOB shipping point, 1/10, n/30 $200 b. 5,000 FOB destination, n/30 400 c. 4,000 50 FOB shipping point, 2/10, n/30 150 d. 5,000 FOB destination, 1/10, n/30 Determine the amount to be paid in full settlement of each of the invoices, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount. 5. Determine the amount to be added to Allowance for Doubtful Accounts in each of the following cases: (a) Balance of $500 in the allowance account just prior to adjustment. Analysis of accounts receivable indicates doubtful accounts of $9,500. (b) Balance of $950 in the allowance account just prior to adjustment. Uncollectible are estimated at 3.5% of sales, which totaled $1,000,000 for the year. 6. The following units are available for sale during the year: January 1 Beginning Inventory 10 Units @ 18 April 3 Purchases 30 Unis @ 20 August 31 Purchases 28 Units @ 25 September 29 Purchases 17 Units @ 30 December 31 Ending Inventory 21 Units Determine ending inventory cost by (a) FIFO, (b) LIFO, and (c) average cost. 7.On the basis of the following data related to current assets for Mission Co. at December 2010, prepare a partial balance sheet in good form. Cash and cash equivalents $100,000 Notes receivable 50,000 Accounts receivable 290,000 Allowance for doubtful accounts 20,000 Interest receivable 750 Merchandise inventory-at lower of cost (first-in, first-out method) or market 120,000 8. Indicate the section of the balance sheet (current assets, fixed assets, investments, current liabilities, long- term liabilities, and stockholders' equity) in which each of the following is reported: (a) Note receivable due in 3 years (b) Note receivable due in 90 days (c) Allowance for doubtful accounts 9. You have been hired by a high-growth startup company to assist in the determination of what depreciation method to employ for financial reporting. The company's fixed assets are equally divided among buildings and high-tech equipment (heavily used in the initial years). (a) Can the company select different methods of depreciation for financial reporting? Explain. (b) Explain to company management which method of depreciation would be suitable for each type of fixed assets the company employs. Also, state why. (c) Which method of depreciation would the company choose for taxes? Explain why. 10. A machine with a useful life of 6 years and a residual value of $3,000 was purchased at the beginning of year 1 for $30,000. The machine was sold for $15,000 on April 1 in year 4. (a) What was the book value of the equipment at the end of year 3 assuming the straight-line method of depreciation is used? (b) Illustrate the effects on the accounts and financial statements of the depreciation from January 1 to April 1 of year 4. (c) Illustrate the effects on the accounts and financial statements of the sale of the machine on April 1. 11. A company acquired mineral rights for $7,500,000. The mineral deposit is estimated at 600,000 tons and during the year 100,000 tons were extracted and sold. (a) Calculate depletion expense for the year. (b) Show the effects on the accounts and financial statements of the company. (c) What is the book value of the mineral rights at the end of the current year? 12. During 2009, Lexie, Inc. acquired Lena, Inc. for $10,000,000. The fair market value of the net assets of Lena, Inc. was $8,500,000 on the date of purchase. During 2012, Lexie, Inc. determined the goodwill resulting from the Lena acquisition was impaired and had a value of $1,000,000. (a) Determine the amount of goodwill implied during 2009. (b) Illustrate the effects on the accounts and the financial statements of the amortization for 2012. 13. For each of the following items indicate whether the transactions listed below increased (+), decreased (-) or had no effect (o) by inserting the appropriate symbol. Net Income-Assets-Liabilities-Owner's Equity-Cash Flow (a) Sold Equipment for cash at a gain (b) Recorded amortization expense on patents (c) Paid Cash for minor repairs to an asset (d) Recorded a revenue expenditure incurred on account (e) Paid Cash to remove old building from land being prepared for use 14. Indicate whether the following actions would (+) increase, (-) decrease, or (0) not affect a company's total assets, liabilities, and stockholders' equity. Assets-Liabilities-Stockholder's Equity (1) Declaring a cash dividend (2) Paying the cash dividend declared in (1) (3) Declaring a stock dividend (4) Issuing stock certificates for the stock dividends declared in (3) 15. Tops Company sells Products D and E and has made the following estimates for the coming year: Product Unit Selling Price Unit Variable Cost Sales Mix D $30 $24 60% E 70 56 40 Fixed costs are estimated at $202,400. Determine (a) the estimated sales in units of the overall product necessary to reach the break-even point for the coming year, (b) the estimated number of units of each product necessary to be sold to reach the break-even point for the coming year, and (c) the estimated sales in units of the overall product necessary to realize an operating income of $119,600 for the coming year. (a) If Henry Company's budgeted sales are $800,000, fixed costs are $350,000, and variable costs are $600,000, what is the budgeted contribution margin ratio? (b) If the contribution margin ratio is 30% for Gray Company, sales are $900,000, and fixed costs are $180,000, what is the operating profit? 16. A corporation, which had 20,000 shares of common stock outstanding, declared a 3-for-l stock split. (a) What will be the number of shares outstanding after the split? (b) If the common stock had a market price of $240 per share before the stock split, would be an approximate market price per share after the split? 17. Smith Co. is considering the following alternative plans for financing the company: Plan I Plan II Issue 10% Bonds (at face) - $1,000,000 Issue $10 Common Stock $3,000,000 $2,000,000 Income tax is estimated at 40% of income. Determine the earnings per share of common stock under the two alternative financing plans, assuming income before bond interest and income tax is $1,000,000.
Question 5
Get the step by step solution to this homework question now: Bottle-Up, Inc., was organized on January 8, 2000, and made its S election on January 24, 2000. The necessary consents to the election were filed in a timely manner. Its federal tax identification is 38-1507869. Its address is 1234 Hill Street, Gainesville, FL 32607. Bottle-Up uses the calendar year as its tax year, the accrual method of accounting and the first-in, first-out (FIFO) inventory method. Bottle-Up manufactures ornamental glass bottles. It made not changes to its inventory costing methods this year. It uses the specific identification method for bad debts for book and tax purposes. Herman Hiebert (S.S. No. 123-45-6789) and Melvin Jones (S.S. No. 100-67-2000) own 500 shares each. Both individuals materially participate in Bottle-Up's single activity. Herman hiebert is the tax matters person. Financial statements for Bottle-Up for the current year are shown in Tables C:11-2 through C:11-4. Assume that Bottle-Up's business qualifies as a U.S. production activity and that its qualified production activities income is $90,000. The S corporation uses the small business simplified overall method for reporting these activities. Prepare a current year S corporation tax return for Bottle-Up, showing yourself as the paid preparer.
