Mountain Press proauces textbooks for high school accounting courses. The company recently hired a new editor, Jan Green, to handle production and sales of books for an introductory accounting course. Jan's compensation depends on the gross margin associated with sales of this book. Jan needs to decide how many copies of the books to produce. The following information is available for the fall semester of 2017: Estimated sales 50,000 books O books $ 160 per book $ 100 per book $750,000 per semester The fixed-cost allocation rate is based on expected sales and is therefore equal to $750,000/50,000 books = $15 per book. Beginning inventory Average selling price Variable production costs Fixed production costs Jan has decided to produce either 50,000, 65,000, or 70,000 books.
Q: Thorne Estates Limited advertises and sells residential property on behalf of its customers. The…
A: Question pertains to preparation of cash budget.
Q: 1. James works as a salesman in Octagon Blitz, a computer, gaming, and multimedia store. Last month,…
A: The sales commission is based on the sales revenue earned during the period.
Q: Sia, a CPA, is employed as accounting professor in a University. On the side, she also provides…
A: From the above information it seems be related to Philippines Train Law. CWT…
Q: Listed below are activities for Stellar Services Ltd. for the month of January, 2016: a. Stellar…
A: Journal Entry The purpose of providing the journal entry to enter the required transaction into…
Q: Calculate ending inventory in units and in dollars for each production level.
A: Workings: Estimated sales = 50000 books. Fixed cost = 15 Variable cost = 100 Total cost = 115.
Q: Mr. Hussein is a trade supplier who has been approached by Al Shinas Trading LLC which is requesting…
A: Ratio analysis is very important technique of management accounting, under which different type of…
Q: Jacqueline Elliott is employed to Make-All Co. Limited since 2009 and worked her way up from filing…
A: Workings:
Q: Martinez Corporation runs two convenience stores, one in Connecticut and one in Rhode Island.…
A: Relevant Cost: It is called relevant because Specific management decision being considered is…
Q: Tom’s Tax Services is a small accounting firm that offers tax services to small businesses and…
A: 1. Differential costs incurred because of addition of new client:
Q: Park and West, LLC, provides consulting services to retail merchandisers in the Midwest. In 2019,…
A: In this question it is asking about the net income & the net income is the total revenue less…
Q: Lou Reed is the primary accountant and 1 of 87 employees at The Velvet Underground, a company that…
A: Given, Profit = $150,000.
Q: The Happy Toddlers (THT) is a preparatory school for children three to five years old. There are ten…
A: The expenses can be categorised as fixed cost or variable cost as per the their nature. The fixed…
Q: Prepare Income Statement for the second quarter of 2020 from the following balances of Wang…
A: The income statement is prepared by the company to calculate the amount of net loss or net profit…
Q: Belle, a consultant, employs one college student every summer to help her in her research work. As…
A: Accrued expenses are those expenses which are incurred for the particular period of time, big…
Q: Douglas Werther is the principal owner of Green Pen Company. His 19 year old daughter, Jessica, is a…
A: Green Pen Company Income Statement Year Ended Dec 31, 2108 Sales 1400000 Less Cost of…
Q: Quick Cleaners, Inc. (QCI), has been in business for several years. It specializes in cleaning…
A: To Compute the net income, the revenues and expenses has to be taken on accrual basis i.e.…
Q: Roger’s business trades in water coolers for offices. At the end of his trading year to 31 December…
A: Income Statement: The income statement of the business shows all incomes and expenses of the…
Q: Mr. Stephen Fury, an experienced academic professor, aims to level the level of knowledge of…
A: Adjusting entries are recorded by the business to prepare adjusted trial balance at the end of…
Q: Consider the revenues and costs in 2019 for Spruce Decor Inc., an Alberta-based furniture company…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: You have recently been hired as the assistant controller for Stanton Temperton Corporation, which…
A: Deferred Revenue Deferred Revenue is also known as "unearned revenue". It basically refers to…
Q: CAR WASH KING recently started a promotion by selling a car wash pass to their customers. The…
A: Revenue is the inflow of cash due from sales or from any other sources. Main source of revenue of a…
Q: r the first year of purchase. It believes that this promotion will bring in some new buyers. On…
A: Given Price of the Automobiles 25000P Less : Down Payment 1000 Balance Amount 24000 P…
Q: employed by THT: five senior teachers with a salary of P30,000 a month and five junior teachers at…
A: “Since you have posted a question with multiple sub-parts, we will solve first two sub-parts for…
Q: Dress-for-Success, Inc. is a successful C Corporation in its sixth year of business and already has…
A: Introduction:- Dress-for-Success, Inc. is a successful C Corporation with total revenues of $5…
Q: A consulting firm enters into a contract to help a small family owned business design a marketing…
A:
Q: For the past few years, your client, Omni Care, has operated a small medical practice. Omni Care's…
A: 1.
Q: Assume that you are responsible for planning a banquet for your school’s accounting club. The…
A: Fixed Costs: Fixed costs, otherwise called overhead expenses or indirect expenses, are costs of…
Q: Jean's Fitness Club provides monthly memberships as well as personal training sessions. The personal…
A: The income statement is prepared to find the net income or loss incurred during the period.
Q: Dress-for-Success, Inc. is a successful C Corporation in its sixth year of business and already has…
A: The Generally Accepted Accounting Principles (GAAP or US GAAP) are a set of accounting rules and…
Q: Diamond Computers, which is owned and operated by Dale Diamond, manufactures and sells different…
A: Growth of business is one of the basic objective of business for which company needs more funds. To…
Q: Roger's business trades in water coolers for offices. At the end of his trading year to 31 December…
A: Note: The Trial Balance mentioned in the question is not Balancing. The sum total of the debit side…
Q: Smith & Sons is a CPA firm that provides proprietary software to its clients. One of its software…
A: Answer The five steps required to satisfy for revenue recognition:- identify the contract with the…
Q: Dress-for-Success, Inc. is a successful C Corporation in its sixth year of business and already has…
A: Dress for success inc. should use GAAP. ACCRUAL BASIS METHOD IT IS A METHOD RECORDS REVENUE WHEN…
Q: Suzi Nomro operates Watercraft Supply Company, an online boat parts distributorship that is in its…
A: Budgeted income statement is an estimated income statement that is prepared with the help of…
Q: Hewitt Enterprises is a business that buys and sells printers at a profit and has the following…
A: Since cost assumption of the business enterprise is not mentioned. We are assuming that latest price…
Q: Quick Cleaners, Incorporated (QCI), has been in business for several years. It specializes in…
A: Account means the systematic record of various transactions entered by businesses. Income statement…
Q: You have just begun your summer internship at Omni Instruments. The company supplies sterilized…
A: 1.
Q: Seashore Home provides house-sitting for people while they are away on vacation. Some of its…
A: given that, On December 31, Seashore Home has collected $500 from cash-paying customers Seashore…
Q: Banner House Inc. gives all its sales people a base salary of $37,000 per annum and a commission of…
A: In addition to the basic income, the commission provides additional revenue. Incentives are offered…
Q: The Happy Toddlers (THT) is a preparatory school for children three to five years old. There are ten…
A: On the basis of nature, the cost may be divided into three categories; 1) Fixed costs, 2) Variable…
Q: On December 31, 2019, Pack N-Deliver Company completed its first year of operations. The following…
A: Income statement of the business shows all incomes and all expenses and at the end it shows net…
Q: Thorne Estates Limited advertises and sells residential property on behalf of its customers. The…
A: The question is based on the concept of time based cash analysis. A cash budget is a analysis cash…
Q: On June 1, 2020, Sam Near created a new travel agency called Tours-For-Less. These activities…
A: "Hello! Since there are multiple sub-parts posted, we will answer first three sub-parts. If you want…
Q: At the beginning of the year, a software developer quit his job and gave up a salary of $90,000 per…
A:
Q: ew their plans for the next six months in order to comply with this requirement. The following…
A: Answer a) Particulars June July August September October November Cash Flow From Operation…
Q: BMC has successfully built a practice that services small businesses by providing accounting related…
A: The five steps of revenue recognition are the following a) Identification of the contract with the…
Q: Home Entertainment is a small, family-owned business that purchases LCD televisions from a reputable…
A: Income statement is a statement showing the net result of revenue and expenses of an organization.…
Q: In 2021 Terry Brady, the legendary athlete from Indiana, decided to leave his job as head football…
A: 1. Total explicit cost = cost of product and services sold + selling expenses + administrative…
Q: John’s Publishing Company, a new service that writes term papers for college students, provides…
A: Honor code: Since you have posted a question with multiple sub-parts, we will solve the first three…
Calculate expected gross margin if Jan produces 50,000, 65,000, or 70,000 books. (Make sure you include the production-volume variance as part of cost of goods sold.)
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
- John’s Publishing Company, a new service that writes term papers for college students, provides 11-page term papers from a list of more than 500 topics. Each paper will cost $7.50 and is written by a graduate in the topic area. John’s will pay $20,000 for the rights to all of the manuscripts. In addition, each author will receive $0.50 in royalties for every paper sold. Marketing expenses are estimated to be a total of $20,000 divided equally between Years 1 and 2, and John’s cost of capital is 11 percent. Sales are expected as follows: a. What are the ethical implications of this investment?John’s Publishing Company, a new service that writes term papers for college students, provides 11-page term papers from a list of more than 500 topics. Each paper will cost $7.50 and is written by a graduate in the topic area. John’s will pay $20,000 for the rights to all of the manuscripts. In addition, each author will receive $0.50 in royalties for every paper sold. Marketing expenses are estimated to be a total of $20,000 divided equally between Years 1 and 2, and John’s cost of capital is 11 percent. Sales are expected as follows: a. What is the payback period for this investment? Its NPV? Its IRR? b. What are the ethical implications of this investment?A textbook publisher produces a textbook for $25 per book and sells 160 books to the Campus Bookstore for $50 per unit. The bookstore sells the textbook new for $75 and used for $60. This edition of the book is used for 2 years (4 semesters). The book-store sells all textbooks that it has at the beginning each semester, and it repurchases 50% of those at the end of each semester for $30. What is the sales income over the life of this 160-unit lot of textbooks? A $16,800 OB. $11,600 OC.$11,900 OD. $14,000 E. None of the given answers are correct.
- Party-Time T-Shirts sells T-shirts for parties at the local college. The company com plated the first year of operations, and the shareholders are generally pleased with operating results as shown by the following income statement: Bill Hildebrand, the controller, is considering how to expand the business. He proposes two ways to increase profits to $100,000 during 2018. a. Hildebrand believes he should advertise more heavily. He believes additional advertising costing 320,000 will increase net sales by 30% and leave administrative expense unchanged. Assume that Cost of Goods Sold will remain at the same percentage of net sales as in 2017, so if net sales increase in 2018, Cost of Goods Sold will increase proportionately. b. Hildebrand proposes selling higher-margin merchandise, such as party dresses, in addition to the existing product line. An importer can supply a minimum of 1,000 dresses for $40 each; Party-Time can mark these dresses up 100% and sell them for $80. Hildebrand…Junebug's Workshop started their operations in March 2017. Prepare journal entries for the following transactions for the month of March A) Paid $84,000 cash for rent for the following 6 months B) Purchased $300,000 of inventory on credit. C) Sold and invoiced goods to a client for $95,400. The cost of the goods sold was $48,000. D) Paid $90,000 in cash for an advertising campaign that will run over the next two months E) Paid $24,000 in cash for supplies to have on hand F) Collected $60,000 from accounts receivable. At the end of March, the following information is available - adjust some of the previous entries based off of this information G) At the end of March, $19,200 supplies remained on hand. H) Rent paid for transaction A is for a lease that began on March 1. I) At the end of March, 1/3 of the advertising campaign from transaction D was completedBackground It is the 1st April 2021. Jang is the Management Accountant for the business Chinese Lantern Imports. Based on the previous month sales (March 2021) Jang sets the following targets for April 2021. April 2021 targets Targeted Lantern sales = 2,300 units Targeted Lantern unit price = $230 (per lantern) Jang calculates the cost of the Lanterns he will need to purchase in during the month as 50% of the expected sales revenue. However, at the 1st April 2021, Jang already currently has $12,400 of Lanterns stock already in his shop. Jang does not intend to buy an extra Lanterns for May 2021. Question Referring to above information, what is the cost of the Lanterns that Jang needs to purchase in, for the month of April? Select one: a. Cost of Lanterns to purchase in = $237,900 O b. Cost of Lanterns to purchase in = $0 O c. Cost of Lanterns to purchase in = $252,100 O d. Cost of Lanterns to purchase in = $264,500
- Marin Shed Solutions sells its largest shed for $1,100 plus HST of 13 %. On May 10, 2024, it sold 26 of these sheds. On May 17,2024, the company sold 85 of these sheds. All sales are cash sales. For each day's sales, calculate the HST. May 10, 2024 May 17, 2024 Question Part Score $ Date $ HST payable Prepare a journal entry to record the sales. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Account Titles Debit --/2 Credit(Customer Loyalty Program) Martz Inc. has a customer loyalty program that rewards a customer with 1 customer loyalty point for every $10 of purchases. Each point is redeemable for a $3 discount on any future purchases. On July 2, 2017, customers purchase products for $300,000 (with a cost of $171,000) and earn 30,000 points redeemable for future purchases. Martz expects 25,000 points to be redeemed. Martz estimates a standalone selling price of $2.50 per point (or $75,000 total) on the basis of the likelihood of redemption. The points provide a material right to customers that they would not receive without entering into a contract. As a result, Martz concludes that the points are a separate performance obligation.Instructions(a) Determine the transaction price for the product and the customer loyalty points.(b) Prepare the journal entries to record the sale of the product and related points on July 2, 2017.(c) At the end of the first reporting period (July 31, 2017), 10,000 loyalty…Vindows constructs and installs windows for new homes. The sales staff are having a meeting and reviewing the following information to determine how to help reduce days' sales uncollected. Accounts receivable Net sales 2023 2022 2021 $ 634,000 $492,000 $ 414,000 6,590,000 5,714,000 4,985,000 Required: a. Calculate the days sales uncollected for 2021 to 2023 and identify whether the trend is favourable or unfavourable (Round the final answer to 2 decimal places. Do not round intermediate calculation. Use 365 days a year) Days' sales uncollected 2023 + 35 07 days 2022 31 55 days 2021 30 36 days Unfavorable Seve -. What can a salesperson do to improve days' sales uncollected? (You may select more than one answer. Single click the box with me question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the bo or a wrond answer.)
- (Learning Objectives 1, 2: Apply GAAP for proper revenue recognition; accountfor sales returns and allowances) Dearborn Industries sells to wholesalers. Customers mustpay within 15 days or at the point of sale using a credit card. Dearborn’s cost of goods sold is35% of sales. The company had the following selected transactions during March:March 3 Sold $25,000 of merchandise to Greenleaf Company on account.Sold $4,000 of merchandise to Yardley Corp., who paid by credit card. The creditcard company charges Dearborn a fee of 2% on credit card sales.March 4March 15 Greenleaf Company paid the balance of what it owed for the purchase on March 3.March 19 Sold $12,000 of merchandise to Zurich Co. on account.March 21 Zurich reported that some of the merchandise received was scratched and returned$500 worth of merchandise to Dearborn.March 23 Sold $38,000 of merchandise to Niles Co. on account.March 25 Zurich paid the balance of what it owed for the purchase on March 19.March 31 Dearborn made…(Learning Objectives 1, 2: Apply GAAP for proper revenue recognition; accountfor sales returns and allowances) Treno Industries sells to wholesalers. Customers must paywithin 15 days or at the point of sale using a credit card. Treno’s cost of goods sold is 40% ofsales. The company had the following selected transactions during March:March 3 Sold $15,000 of merchandise to Whittier Company on account.Sold $2,000 of merchandise to Yeller Corp., who paid by credit card. The creditcard company charges Treno a fee of 2% on credit card sales.March 4March 15 Whittier Company paid the balance of what it owed for the purchase on March 3.March 19 Sold $22,000 of merchandise to Zucca Co. on account.March 21 Zucca reported that some of the merchandise received was scratched and returned$1,000 worth of merchandise to Treno.March 23 Sold $32,000 of merchandise to Nichols Co. on account.March 25 Zucca paid the balance of what it owed for the purchase on March 19.March 31 Treno made the adjusting…A University produces two courses for its Management students this year. MATA32 and MATA33. Each student taking MATA32 requires 6 hours of teaching, 2 hours of adminis- tration, with a revenue of $1300. Each student taking MATA33 requires 7 hours of teaching, 1 hour of administration with a revenue of $1700. Due to the University's resources, there is a maximum of 2010 teaching hours and 150 administration hours. The University must also admit at least 30 MATA32 and at least 30 MATA33 students due to government regulation. What is the maximum revenue? (A) 90000 (B) 129000 (C) 188000 (D) 192500 (E) None of the above