Compute the total amount of additional code

Assignment Help Financial Accounting
Reference no: EM132934158

Problem - Mill Co., a calendar-year manufacturer, which uses the FIFO inventory method, previously allocated production costs to inventory by use of a burden rate based on the ratios of total indirect production costs incurred during the year compared to total direct labor costs during the year. Mill Co. incurred the following costs during the year:

Direct material $500,000

Direct labor 1,500,000

Indirect costs inventoried under pre-1986 TRA law 1,500,000

Additional costs inventoried under Code Sec. 263A 750,000

Ending inventories prior to the capitalization of additional Code Sec. 263A costs 700,000

Mill Co. had an inventory turnover rate of five times.

Required - Compute the total amount of additional Code Sec. 263A costs to capitalize for FIFO inventory under the simplified production method.

Reference no: EM132934158

Questions Cloud

What amount must remaining assets be sold in order for julia : Gerald and Bea are partners who decided to terminate, What amount must the remaining assets be sold in order for Julia to receive P197,500 after liquidation?
Value chain analysis : Value Chain Analysis are adding significant value to the customers. Name the specific activities and describe what happens in that activity to add value
Compare the different modes of cellular locomotion : Now consider two cave populations of L. curasoae. Cave 1 supports a stable population of 20 individuals, while Cave 2 has a stable population of 90 individuals.
What value of the cloth trim and processed cloth should be : Based upon the volume/production output, the value of the cloth trim and processed cloth should be? A typical batch of 1000 shirts requires three main processes
Compute the total amount of additional code : Compute the total amount of additional Code Sec. 263A costs to capitalize for FIFO inventory under the simplified production method
What two diagnostic procedures did the physician order : Mary Pearl, age 60, has come into the physician's office complaining of swelling, stiffness, and arthralgia, especially in her elbows, wrists, and hands.
What is the maximum price that the company may pay to buy : What is the maximum price that the company may pay to buy the component from an external supplier? A component used in this product with a marginal cost of £300
How much higher is the manager bonus : The net income after taxes is $54950 for FIFO and $46200 for LIFO. The tax rate is 30%. The bonus rate is 20%. How much higher is the manager's bonus
How excitotoxicity via excess glutamate : Describe how excitotoxicity via excess glutamate can lead to apoptosis.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Calculate present value of tax related incremental cash flow

Calculate the present value of the tax related incremental cash flows in 2013 if Antel switches to the new capital structure by the end of 2012

  What is the value of the project to Wandering RV

Generate $36,950 per year during its six-year life. If its required rate of return is 10 percent, what is the value of the project to Wandering RV?

  What is the threshold of the maturities of marketable debt

Which financial instruments are classified as cash equivalents, and as available-for-sale? What is the threshold of the maturities of marketable debt securities to be classified as long-term?

  Determining the value of her vineyard operation

During the past year, Stacy McGill planted a new vineyard on 150 acres of land that she leases for $30,740 a year. She has asked you, as her accountant, to assist her in determining the value of her vineyard operation. Dick Button has offered to buy ..

  Discuss standards that inherent in gri

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler and discuss the standards that are inherent in Global Reporting Initiative (GRI).

  Show the entry to admit the new partner into the business

Show the entry to admit the new partner into the business. Show the entry to allocate the net income to the partners' capital accounts using the income ratio.

  What is the diluted earnings per share for the year ended

The company reported net income during the year in the amount of P840,000. What is the diluted earnings per share for the year ended December 31, 2012

  Determine what logical arguments might use to convince boss

What logical arguments might you use to convince your boss to forego the project despite its high rate of return? Is it possible that making investments

  Provide the appropriate journal entries

Provide the appropriate journal entries, assuming that Jerry Lopez takes two weeks' annual leave after being employed for one year

  Relying on information technology to conduct business

In 120 words or more What is the COBIT framework and what are the primary provisions of COBIT? Do you agree the COBIT framework will provide adequate controls and minimize risks associated with an organization relying on information technology to con..

  Calculate roe and eps of the economic scenarios

a- Calculate ROE and EPS under each of the economic scenarios before any debt is issued.

  Calculate other comprehensive income-comprehensive income

A company reported the following information for 2014: Calculate Net Income: Calculate Other Comprehensive Income: Calculate Comprehensive Income:

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd