• Q : The service department costs to the revenue....
    Accounting Basics :

    Alice Gibbons owns and operates Alice's Abstracting Service. Alice's two revenue generating operations (Abstracting Services and Closing Services) are supported by two service departments.

  • Q : How much revenue will entity a recognize at the end....
    Accounting Basics :

    At the end of the first quarter, Entity A has handled a total of 360,000 service center calls. It recognizes revenue based on the proportion of calls completed relative to the total number of calls

  • Q : Explain the units of a certain product line....
    Accounting Basics :

    Jones Mining Company plans to sell 120,000 units of a certain product line at a price of $6. There are 10,000 units of the product in the inventory at January 1 and the inventory is to be increased

  • Q : Discuss the three separate performance obligations....
    Accounting Basics :

    Master Grill sells free-standing gas grills plus installation to a customer's gas line for a total price of $700. The contract price includes a one-year warranty on the product.

  • Q : Determine the respective standalone relative selling prices....
    Accounting Basics :

    Under the new standard, should the March 1, 2014, agreement be accounted for as a modification of the February 1 agreement or as a new agreement?

  • Q : Allocate the service department costs....
    Accounting Basics :

    Allocate the service department costs to the user departments using the step method. Allocate Information Systems first and round to the nearest dollar. Provide total user department costs.

  • Q : Unit-of-production depreciation method....
    Accounting Basics :

    The Production Department has been investigating possible ways to trim total production costs. One possibility currently being examined is to make the paint cans instead of purchasing them.

  • Q : How will operating income be affected....
    Accounting Basics :

    If $26469 in fixed costs will be eliminated by dropping the Pitcher line, how will operating income be affected? If income drops, use a negative sign in front of the number.

  • Q : What should spahr company do....
    Accounting Basics :

    Erickson Company has offered to sell 5,000 units of the same part to Spahr Company for $11 per unit. Assuming the company has no other use for its facilities, what should Spahr Company do?

  • Q : Prepare a contribution format income....
    Accounting Basics :

    Assume that the company produces and sells 86,000 units during the year at the selling price of $7.81 per unit. Prepare a contribution format income statement for the year.

  • Q : What would their target cost be....
    Accounting Basics :

    A company operates in a competitive marketplace. They look to the market to determine their selling price. It looks like the market will bear a price of $170.

  • Q : What decision should mink make....
    Accounting Basics :

    Mink Manufacturing is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $60 and Mink would sell it for $130.

  • Q : What are the fixed costs to maintain the tennis courts....
    Accounting Basics :

    Rosemont Tennis is planning for the coming year. Investors would like to earn a 11% return on the company's $21610164 million of assets.

  • Q : Journalize the retirement of the bonds....
    Accounting Basics :

    On January 1, 2002, Fox Corp. issued 1,000 of its 10% bonds for $1,040,000. These bonds were to mature on January 1, 2012 but were callable at 101 any time after December 31, 2005.

  • Q : Calculating the number of additional logs....
    Accounting Basics :

    Lincoln Company sells logs for an average of $18 per log. The company's president, Abraham, estimates that the variable manufacturing and selling costs total $6 per log.

  • Q : How would operating income be affected....
    Accounting Basics :

    If a special sales order is accepted for 4863 sails at a price of $231 per unit, and fixed costs remain unchanged, how would operating income be affected?

  • Q : Determine the amount of gain or loss to be reported....
    Accounting Basics :

    On July 31, 2003, Dome Co. issued $1,000,000 of 10%, 15-year bonds at par and used a portion of the proceeds to call its 600 outstanding 11%, $1,000 face value bonds, due July 31, 2013 at 102.

  • Q : What is the difference in operating income by processing....
    Accounting Basics :

    Fine Pottery Processors manufactures two products, platters and tureens, from a joint process. Platters are allocated $5000 of the total joint costs of $29059.

  • Q : What is a current asset....
    Accounting Basics :

    What is a current asset? What is a noncurrent asset? What is the difference betweeen the two types of assets? In which financial statement would you find these assets?

  • Q : Calculate the number of locks....
    Accounting Basics :

    Lockwood Company currently sells its deadbolt locks for $30 each. The locks have a variable cost of $10, and the company's annual fixed costs are $150,000. The company's tax rate is 40 percent.Calc

  • Q : Calculate the sales price that gigi leblanc''s company must....
    Accounting Basics :

    Gigi LeBlanc founded a company to produce a special bicycle suspension system several years ago after her son, who worked for a bicycle delivery service.

  • Q : Why the user departments using the step method....
    Accounting Basics :

    Computer Information Services is a computer software consulting company. Its three major functional areas are computer programming, information systems consulting, and software training.

  • Q : Discuss what is meant by goodwill in a business....
    Accounting Basics :

    As is often the case in financial transactions, there are differences in accounting for tax purposes and accounting for financial reporting purposes. One example of this is amortization of goodwill

  • Q : Discuss the gain or loss on the sale....
    Accounting Basics :

    On January 2, 2013, Benson Hospital purchased a $97,700 special radiology scanner from Picard Inc. The scanner had a useful life of 4 years and was estimated to have no disposal value at the end of

  • Q : Calculate material cost variance....
    Accounting Basics :

    Standards: 200 kg material at 4$ per kg for 140 kg finished product. Actual: Output 42000 kg, material used 56000 kg. Cost of material 100800$. Calculate material cost variance, material price vari

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