its sales department has three divisions: Salalah, Raysut and Mirbat
Q: What is the profit (or loss) at the crossover point?
A: Formula: Contribution= Sales- Variable Cost Profit/Loss= Contribution- Fixed Cost Cross over poin...
Q: A company makes the following journal entry for 2021: Dr. Income Tax Expense xxxx...
A: The journal entries are prepared to keep the record of day to day transactions.
Q: Al Badami Group of Companies range amongst one of the most reputed business establishments in the Su...
A: Unconsolidated Report - It is a report that contains information about the parent's assets & lia...
Q: Consider the following data for three divisions of a company, X, Y, and Z: Divisional: X Y Z ...
A: Return on Investment = (Operating Income / Investment In assets) *100
Q: Parent-Sub
A: On Acquisition identified assets & liabilities are recorded in the books of the parent company a...
Q: On December 31, 2020, BROWN Bank has a 5-year loan receivable with a face value of ₱6,000,000 dated ...
A: Answer: ₱ 1,111,800
Q: Discuss the process of accounting for long term bonds from issuance to sale or retirement
A: The company will raise capital by issue the share, bonds, debentures, etc., to the final public. The...
Q: The normal balance for the Treasury Stock account is a debit balance. True or False
A: Treasury Stock is the reacquired stock of own shares. Entry to Purchase of Treasury Stock is: Trea...
Q: What is depreciation?
A: The fixed assets are the type of assets which are used for long period of time in business.
Q: Which of the following is NOT an accounting method that could be chosen by a company to increase rep...
A: Allowance for doubtful debts can be understated by understating the bad debt expense. This will help...
Q: FlinFlon Limited sells three products whose prices are sensitive to price fluctuations. The followin...
A: Please find the answers to the above questions below:
Q: The tobacco companies have paid billions because of smoking-related illnesses. In particular, Philip...
A: 1. The following are the ethical issues that arise when disclosing a fact:- The most contentious que...
Q: On January 1, 2019, LEMON Company purchased bonds with face amount of ₱6,000,000 for ₱6,309,000. The...
A: Particular Amount Working Present Value of bonds as on 31/12/2019 6,813,720 (6,309,000*1.08) Les...
Q: A plant asset acquired on October 1, 2020, at a cost of $500,000 has an estimated useful life of 10 ...
A: The question is related to Depreciation Accounting. A plant asset acquired on October 1, 2020, at a ...
Q: Number of units produced 6,000 Units sold 5,000 Units in opening inventory 0 Selling price per unit ...
A: Income statement is prepared with a view to show the net revenue, total fixed and variable costs and...
Q: Suppose that a company's most recent dividends per share paid upon the last year's net income was $1...
A: The question is related to Dividend Policy.The company's most recent dividends per share paid upon t...
Q: The following three independent sets of facts relate to contingent liabilities: In November of the...
A: Accounting treatment of Contingent liability : As per International Accounting Standards or Fin...
Q: PEARS Company owned three investment properties. Details of the properties are as follows: (see phot...
A: As the Accounting policy of the company is to use Fair Value Model, at the end of each reporting per...
Q: Victory, Inc. is a manufacturer and retailer of household furniture. Your audit of the company’s fin...
A: Current liabilities are the obligations of the company that has to be paid within a year.
Q: Savickas Petroleum's stock has a required return of 12.00%, and the stock sells for $36.00 per share...
A: Please find the answer to the above question below:
Q: Anderson Motors is a chain of car dealerships. Sales in the fourth quarter of last year were $4,400,...
A: An income statement helps the business enterprises in determining how much gross profit or net profi...
Q: Exercise: Production costs are tracked according to the order cost method in the" Şirin Clothing and...
A: Job Cost Sheet - It is a document to be used to record manufacturing costs and is prepared the compa...
Q: In a share acquisition business combination resulting in a parent- subsidiary relationship, the diff...
A: The consolidated worksheet includes the book value of parent and subsidiary accounts along with the ...
Q: Net Present Value Method, Present Value Index, and Analysis First United Bank Inc. is evaluating thr...
A: Solution 1: Computation of NPV Branch Office Expansion Computer Syste...
Q: A company has a building that costs 10 million TL, has a useful life of 10 years and has been in use...
A: depreciation is the wear and tear of the machine. it is the value deducted from the useful life of t...
Q: Blue Spruce Corp. has 15000 shares of 5%, $100 par value, cumulative preferred stock and 30000 share...
A: Annual preference dividend=Number of share×Par value×5%=15,000×$100×5%=$75,000
Q: What is the profit (or loss) at the crossover point? Product 1 Product 2 Price/Unit 60 52 Variable C...
A: Cross-over point is the point at which profit incurred from two products is equal.
Q: What is Fair Value Accounting? What are the factors contributing toward the trend of fair value acco...
A: "Since you have asked multiple question, we will solve the first question for you. If you want any s...
Q: 6. Which depreciation method calculates annual depreciation expense based on the book value of an as...
A: The regular fall in the worth of an asset due to its usage is known as depreciation.
Q: Bond premium, entries for bonds payable transactionsO’Halloran, Inc. produces and sells outdoor equi...
A: Journal entries are prepared to record the financial and non financial transaction of the business d...
Q: 3. GB Motor Company produced 600,000 bikes at a price of $440 each. The company made a profit of $60...
A: First of All calculate cost for producing 600000 bikes CALCULATION PARTICULAR 600000 BIKES( in ...
Q: On January 1, 2021, an ordinary share of CAC Company is selling for P200. The 2021 dividend is expec...
A: The market price of a share is the one at which a seller is ready to sell and a buyer is ready to pu...
Q: A company sold goods to a customer in exchange for a 5-year, zero-interest-bearing note on January 1...
A: Face Value of Notes Receivable=$308,000 Interest Rate = 10% The goods sold in exchange for a 5 year ...
Q: Coronado Industries has gathered the following information concerning one model of shoe: Variabl...
A: Investment refers to the allocation of the money in order to earn benefit over the money invested.
Q: The condensed income statement for a PiggyPink Ltd. for the past year is as follows: ...
A: A B C Total Sales $350,000 $210,000 $340,000 $900,000 Costs: ...
Q: The following information is available for Jisoo Company for the current year: Net Sales ...
A: Cost of goods sold = sales - gross profit = 3600000-3600000*40% = 2,160,000
Q: S1: The preparation of consolidated financial statements after acquisition is materially different c...
A: Statement 1 is correct as consolidated financial statements are prepared for the parent company who ...
Q: In Principles of Accounting: 12th Edition Belverd E. + 5 others Publisher: Cengage Learning ISBN: ...
A: Answer - Part 1 - Classification of Cost : Skilled Labour - Variable Cost Unskilled Labou...
Q: The current sections of Martinez Corp.’s balance sheets at December 31, 2021 and 2022, are presented...
A: Under the Cash flow statement, all activities are classified as: Cash flow from operating activitie...
Q: Question 1: Salalah Company has the financial information given in the table for the year ended on 3...
A: Contribution margin per unit = Selling price - variable cost = 275 - 125 = OMR 150 per units
Q: If merchandise inventory is being valued at cost and the purchase price is steadily falling, which m...
A: Inventory can be valued using many ways such as : FIFO LIFO Weighted Average Average cost
Q: Accounting Question
A: Cash Payment Budget: It itemize the projected uses of cash in future period. NOTE: Depreciation a...
Q: Ellsworth Enterprises borrowed $425,000 on an 8%, interest-bearing note on September 30, 2020. Ellsw...
A: Notes payable represents the liability of the company which is represented in the balance sheet.
Q: Compute requirements 1-3 and a-b
A: As posted multiple sub parts we are answering only first three sub parts kindly repost the unanswere...
Q: On January 1, 2019, LEMON Company purchased bonds with face amount of ₱6,000,000 for ₱6,309,000. The...
A: Bond is quoted on December 31, 2020, = 95
Q: Nabil is considering buying a house while he is at university. The house costs $200 000 today. Renti...
A: Given, Discounting rate=6%12 months=0.5% per month Period=5 years×12 months=60 months
Q: Required: Compute for the following a. Gross income b. Income from continuing operations c. Comprehe...
A: An income statement is one that considers all the revenue and expenses made in an accounting period ...
Q: Consolidation financial statements are prepared when a parent-subsidiaryrelationship exists in recog...
A: When there is a parent-subsidiary relationship, preparation of consolidated financial statements are...
Q: Instruction: a) Journalize the above transactions using the perpetual method and make the necessary ...
A: The transaction in which resources are exchanged between entities or between entity and individual, ...
Q: Complete 1-3
A: Fixed costs are those costs which do not change with change in level of activity.
Step by step
Solved in 2 steps with 1 images
- 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.Quality Cost Report Whitley Company had total sales of 1,000,000 for the year ending 20X1. The costs of quality 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.Cost of quality report A. Using the information in Exercise 15, identify the cost of quality classification for each activity. B. Prepare a cost of quality report. Assume sales for the period were 4,000,000. Round percentages to one decimal place. C. Interpret the cost of quality report.
- Corazon Manufacturing Company has a purchasing department staffed by five purchasing agents. Each agent is paid 28,000 per year and is able to process 4,000 purchase orders. Last year, 17,800 purchase orders were processed by the five agents. Required: 1. Calculate the activity rate per purchase order. 2. Calculate, in terms of purchase orders, the: a. total activity availability b. unused capacity 3. Calculate the dollar cost of: a. total activity availability b. unused capacity 4. Express total activity availability in terms of activity capacity used and unused capacity. 5. What if one of the purchasing agents agreed to work half time for 14,000? How many purchase orders could be processed by four and a half purchasing agents? What would unused capacity be in purchase orders?Product cost concept of product pricing Based on the data presented in Exercise 12-15, assume that Willis Products Inc. uses the product cost concept of applying the cost-plus approach to product pricing. a.Determine the total manufacturing costs and the cost amount per unit for the production and sale of 200,000 units. b.Determine the product cost markup percentage per unit. Round to two decimal place. c.Determine the selling price per unit. Round to the nearest dollar.Cost of quality and value-added/non-value-added reports for a service company A. Using the information in Exercise 17, identify the cost of quality classification for each activity and whether the activity is value-added or non-value-added. B. Prepare a cost of quality report. Assume that sales are 3,000,000. (Round percentages to one decimal place.) C. Prepare a value-added/non-value-added analysis. D. Interpret the information in (B) and (C).
- Zachary Company operates three segments Income statements for the segments imply that profitability could be improved if Segment A were eliminated. ZACHARY COMPANY Income Statements for Year 2 Segment Sales Cost of goods sold Sales commissions Contribution margin General fixed operating expenses (allocation of president's salary) Advertising expense (specific to individual divisions) Net income (loss) Required a. Prepare a schedule of relevant sales and costs for Segment A A $ 168,000 (126,000) (20,000) 22,000 (34,000) (6,000) B $ 235,000 (79,000) (32,000) 124,000 (51,000) (19,000) $ (18,000) $ 54,000 $ 253,000 (82,000) (28,000) 143,000 (34,000) $ 109,000 b. Prepare comparative income statements for the company as a whole under two alternatives (1) the retention of Segment A and (2) the elimination of Segment A Complete this question by entering your answers in the tabs below.. Required A Required B Prepare a schedule of relevant sales and costs for Segment A. Relevant Revenue and Cost…The estimated departmental manufacturing for producing departmenta A and Band the estimated costs of service departments C, D, and E (befor any service department allocations) are: Producing Department Service Department P120,000 180,000 P40,000 B D 40,000 E 20,000 The interdependence of the departments is as follows: Services Provided by Department D E Producing A Producing B Service C Service D Service E 30% 40% 50% 40 30 20 20 30 Marketing General office 20 10 100% 100% 100% Compute the final amount of estimated overhead of Service E after reciprocal transfer costs have been calculated algebraically. After computing the total factory overhead of each producing department and what amount of Department E cost is assigned to Marketing Department?Kyle Corporation provides the following information for the Product Division and Service Division for the year. Product Division Service Division 420,000 $ 650,000 195,000 245,000 640,000 610,000 14.0% 14.0% Net sales Operating income Average total assets Target rate of return $ Requirement 1. Calculate the return on investment for each division. (Enter answers as a percent rounded to the nearest hundredth percent, X.XX%) The return on investment for the Product Division is The return on investment for the Service Division is Requirement 2. Which division has the highest ROI? % % Requirement 3. Calculate the residual income for each division. (Round answers to the nearest whole dollar.) The residual income for the Product Division is The residual income for the Service Division is Requirement 4. Which division has the highest residual income?
- Practice 1:The following data has been extracted from the operating records of HPPT SolutionSdn Bhd for the last two quarters of the year to 31 December 2020: Quarter 3Production units 7,000Sales units 5,500RMSelling price per unit 100Variable manufacturing cost per unit:Direct material cost 20Direct labor cost 15Variable overheads 10Fixed production overheads are budgeted at RM120,000 for a budgeted productionof 8,000 units per quarter. These overheads are absorbed on per unit of productionbasis.Non-production overheads comprised:Fixed administration expenses RM40,000 per quarter.Selling and distribution expenses are 10% of sales.You are required to prepare an income statement under:(a) Marginal costing and(b) Absorption costing.Torres Company accumulates the following summary data for the year ending December 31, 2020, for its Water Division, which it operates as a profit center: sales—$1,935,600 budget, $2,243,000 actual; variable costs—$1,016,200 budget, $1,051,200 actual; and controllable fixed costs—$297,600 budget, $303,400 actual.Prepare a responsibility report for the Water Division for the year ending December 31, 2020. TORRES COMPANYWater DivisionResponsibility ReportFor the Year Ended December 31, 2020 Difference Budget Actual FavorableUnfavorableNeither Favorablenor Unfavorable Select an opening responsibility report item Contribution MarginControllable Fixed CostsControllable MarginFixed CostsGross ProfitNet Income/(Loss)SalesVariable Costs $Enter a dollar amount $Enter a dollar amount $Enter the difference Select an option…Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A Division B Division C Sales $ 15,950,000 $ 28,760,000 $ 25,950,000 Average operating assets $ 3,190,000 $ 7,190,000 $ 5,190,000 Net operating income $ 733,700 $ 373,880 $ 752,550 Minimum required rate of return 6.00 % 6.50 % 14.50 % Required: 1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. 2. Compute the residual income (loss) for each division. 3. Assume that each division is presented with an investment opportunity that would yield a 7% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity? b. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity?