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Problem - Dillman Corporation has nexus in States A and B. Dillman's activities for the year are summarized below.
State A
State B
Total
Sales
$1,200,000
$ 400,000
$1,600,000
Property
Average historical cost
500,000
300,000
800,000
Average accumulated depreciation
(300,000)
(100,000)
(400,000)
Payroll
2,500,000
3,000,000
Rent expense
-0-
35,000
Determine the apportionment factors for A and B assuming that A uses a three-factor apportionment formula under which sales, property (net depreciated basis), and payroll are equally weighted and B employs a single-factor formula that consists solely of sales. State A has adopted the UDITPA with respect to the inclusion of rent payments in the property factor.
Compute the amount of raw materials used during August if $30,000 of raw materials were purchased during the month and the inventories were as follows.
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