(Solved):Q: If answered with…

Question

If answered within 30mins,it would be helpful!

 

Switzer, Inc. has 5 computers which
have been part of the inventory for
over two years. Each computer cost
$600 and originally retailed for
$900. At the statement date, each
computer has a current replacement
cost of $400. What value should
Switzer, Inc., have for the computers
* ?at the end of the year
$2,000.
$3,000.
$1,500.
$4,500.

Image Transcription

Switzer, Inc. has 5 computers which have been part of the inventory for over two years. Each computer cost $600 and originally retailed for $900. At the statement date, each computer has a current replacement cost of $400. What value should Switzer, Inc., have for the computers * ?at the end of the year $2,000. $3,000. $1,500. $4,500.

(Solved):Q: XYZ Company prod…

Question
XYZ Company produces two models of wood chairs, A and B. The selling price per unit and the variable
manufacturing cost per unit for model A are $420 and $245 respectively. The selling price per unit and the
variable manufacturing cost per unit for model B are $560 and $266 respectively. The variable selling
expense per unit for models A and B are $70 per unit and $84 per unit respectively. Assume that total fixed
expenses are $277,200 per month and the expected monthly sales for models A and B are 12,600 units and
3,150 units respectively. If the sales mix and sales units are as expected, the break-even in sales ($) is: (round
figures to the nearest number)
Select one:
O a. 624,676
O b. 682,338
O c. 985,600
O d. 459,606

Image Transcription

XYZ Company produces two models of wood chairs, A and B. The selling price per unit and the variable manufacturing cost per unit for model A are $420 and $245 respectively. The selling price per unit and the variable manufacturing cost per unit for model B are $560 and $266 respectively. The variable selling expense per unit for models A and B are $70 per unit and $84 per unit respectively. Assume that total fixed expenses are $277,200 per month and the expected monthly sales for models A and B are 12,600 units and 3,150 units respectively. If the sales mix and sales units are as expected, the break-even in sales ($) is: (round figures to the nearest number) Select one: O a. 624,676 O b. 682,338 O c. 985,600 O d. 459,606

(Solved):Q: A. State and exp…

Question
A. State and explain two objectives of business in preparing budget. Provide example
where necessary.
B. Kinetic Manufacturing mahufactures small robots that function as a timekeeper. It
expects to produce 4,000 units each month. Budgeted variable manufacturing costs
per unit are direct materials RM7, direct labour RM5 and overhead RM10. Monthly
budgeted fixed manufacturing overhead costs are RM4,500 for depreciation and
RM3,000 for rental.
In the current month, Kinetic Manufacturing produced 4,100 units of small robots and
incurred the following costs: direct material RM28,290, direct labour RM22,000,
variable overhead RM44,000, depreciation RM4,500 and rental RM3,000.
Required:
Prepare a performance report using flexible budget for 4,100 units of output. For
each expense, determine the type of variance; favourable or unfavourable.
Based on the performance report prepare in (), discuss the performance of
Kinetic Manufacturing for the current month.

Image Transcription

A. State and explain two objectives of business in preparing budget. Provide example where necessary. B. Kinetic Manufacturing mahufactures small robots that function as a timekeeper. It expects to produce 4,000 units each month. Budgeted variable manufacturing costs per unit are direct materials RM7, direct labour RM5 and overhead RM10. Monthly budgeted fixed manufacturing overhead costs are RM4,500 for depreciation and RM3,000 for rental. In the current month, Kinetic Manufacturing produced 4,100 units of small robots and incurred the following costs: direct material RM28,290, direct labour RM22,000, variable overhead RM44,000, depreciation RM4,500 and rental RM3,000. Required: Prepare a performance report using flexible budget for 4,100 units of output. For each expense, determine the type of variance; favourable or unfavourable. Based on the performance report prepare in (), discuss the performance of Kinetic Manufacturing for the current month.

(Solved):Q: The following in…

Question

The following information is available from the current period financial statements:

Net income $117,355
Depreciation expense 24,849
Increase in accounts receivable 15,110
Decrease in accounts payable 21,436

The net cash flow from operating activities using the indirect method is

a.$105,658
b.$178,750
c.$55,960
d.$117,355

(Solved):Q: The assets and l…

Question

The assets and liabilities of Hercules Inc. as of December 31,2019, and revenues and expenses for the year ended on that date follow:

 

Land                                                   $98,000

Property tax expense                       $5,000

Note payable (due 2025)                     95,000

Accounts receivable                         25,000

Accounts payable                                21,000

Advertising expense                          10,000

Rent expense                                         3,000

Building                                            140,000

Cash                                                     10,000

Salary expense                                   85,000

Common shares                                  75,000

Salary payable                                   12,000

Furniture                                              20,000

Service revenue                                200,000

Interest expense                                   4,000

Supplies                                                3,000

 

Beginning retained earnings were $50,000, and dividends totalled $50,000 for the year.

 

Required

 

  1. Prepare in good form a statement of earnings (income statement) of Hercules Inc. for the year ended December 31, 2019.
  2. Prepare in good form a statement of retained earnings of Hercules Inc. for the year ended December 31, 2019.
  3. Current  Assets :________________________________________________________

    Total  Assets :__________________________________________________________

    Total  Liabilities :________________________________________________________

    Total Shareholders’ equity: ________________________________________________

  4. Analyze Hercules Inc. by answering these questions:

    1. Was Hercules Inc. profitable during 2019? By how much?

      ___________________________________________________________________

    2. Who owns more of Hercules Inc.’s assets, the creditors or the shareholders?___________________________________________________________________
    3. Why?___________________________________________________________________

(Solved):Q: ADS (Alternative…

Question

 ADS (Alternative Depreciation System and MACRS (Modified Accelerated Cost Recovery System. Peter purchased the following new properties to use in his business.

Equipment:      Acquired in April, 2007 at a cost of $72,000

Furniture:        Acquired in March, 2010 at a cost of $84,000

Computer:       Acquired in July, 2013 at a cost of $10,000

 

a. Compute Peter’s 2014 depreciation expense. Peter has never elected Section 179 (expense election), nor has he ever elected out of taking bonus depreciation. Peter uses ADS straight-line method with a ten-year life to depreciate the equipment. He uses regular (accelerated) MACRS to depreciation the furniture and computer. The half-year convention applies to all three properties.

 

b. Same as in Part a., except that the mid-quarter convention applied to all personal property placed in service in 2010.

 

c. Same as in Part a. except that Peter purchased each of these properties in 2014. Compute depreciation for each of these properties for 2014 using the maximum depreciation allowed for each property without electing Section 179.

(Solved):Q: Calla Company pr…

Question

Calla Company produces skateboards that sell for $50 per unit. The company currently has the capacity to produce 90,000 skateboards per year but is selling 80,000 skateboards per year. Annual costs for 80,000 skateboards follow.

Direct materials.
$ 800,000
Direct labor...
640,000
Overhead .
960,000
Selling expenses..
560,000
Administrative expenses
480,000
$3,440,000
Total costs and expenses.
A new retail store has offered to buy 10,000 of its skateboards for $45 per unit. The store is in a different
market from Calla's regular customers and would not affect regular sales. A study of its costs in anticipa-
tion of this additional business reveals the following:
• Direct materials and direct labor are 100% variable.
• Thirty percent of overhead is fixed at any production level from 80,000 units to 90,000 units; the
remaining 70% of annual overhead costs are variable with respect to volume.
• Selling ex penses are 60% variable with respect to number of units sold, and the other 40% of selling
expenses are fixed.
• There will be an additional $2 per unit selling expense for this order.
Administrative expenses would increase by a $1,000 fixed amount.

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Direct materials. $ 800,000 Direct labor... 640,000 Overhead . 960,000 Selling expenses.. 560,000 Administrative expenses 480,000 $3,440,000 Total costs and expenses. A new retail store has offered to buy 10,000 of its skateboards for $45 per unit. The store is in a different market from Calla's regular customers and would not affect regular sales. A study of its costs in anticipa- tion of this additional business reveals the following: • Direct materials and direct labor are 100% variable. • Thirty percent of overhead is fixed at any production level from 80,000 units to 90,000 units; the remaining 70% of annual overhead costs are variable with respect to volume. • Selling ex penses are 60% variable with respect to number of units sold, and the other 40% of selling expenses are fixed. • There will be an additional $2 per unit selling expense for this order. Administrative expenses would increase by a $1,000 fixed amount.

Required
1. Prepare a three-column comparative income statement that reports the following:
a. Annual income without the special order.
b. Annual income from the special order.
c. Combined annual income from normal business and the new business.
2. Should Calla accept this order?

Image Transcription

Required 1. Prepare a three-column comparative income statement that reports the following: a. Annual income without the special order. b. Annual income from the special order. c. Combined annual income from normal business and the new business. 2. Should Calla accept this order?

(Solved):Q: Following is the…

Question

Following is the trial balance of  Al  Hakeem Tea  Company  LLC   for the year ended 31st December 2014:         

Name of the Account

Dr( OMR)

Cr(OMR)

Bank

26000

 

Purchases

324000

 

Sales

 

455000

Accounts Receivable

28000

 

Accounts Payable

 

46000

Notes Payable

 

8000

Notes Receivable

16000

 

Salary Expense

32000

 

Rent    Expense

24000

 

Insurance  Expense

3800

 

Other Income

 

9800

Machinery

44000

 

Buildings

76000

 

Loan

 

49000

Capital

 

55000

Sales Return

7000

 

Purchase Return

 

8000

Opening Stock

50000

 

                 Total

630800

630800

 Other information:

  • Closing stock is 60000 OMR.
  • Depreciation charge on Machinery and  Buildings  is 10%

Required:  (i) Prepare the Income statement

(Solved):Q: QUESTION 9 A com…

Question
QUESTION 9 A company buys a patent for $100,000 on 31 December 20X1. It expects to use the patent for the next 10 years, after which it will be valueless. According to IAS 38 Intangible assets, compute the annual amortisation charge. What is the journal entry required to record the amortisation in the accounts for the year ended 31 December 20X2

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