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A company produces doors. The following information wasgathered to prepare budgets for the upcoming year beginning January1:
sales forecast inunits................................... 5,500 doorsfinished goods inventory,Jan1....................... 620 doorstarget finished goods inventory,Dec1............. 480 doorsraw materials inventory-steel, Jan1................ 40,000lbstargetinventory-steel,Dec1.......................... 80,000lbsraw materialsinventory-glass,Jan1.................. 6,000 squarefeettargetinventory-glass,Dec1............................ 4,000square feetbudgeted purchase price-steel......................... $4 perlbbudgeted purchase price-glass.........................$2 persquare foot
The manufacture of each door requires 20 lbs of steel and 6square feet of glass
Prepare the production schedule in units for the company.
listed below are several assumptions and principles followed by transactions and events which violate the assumptions
Kim owns 100% of the stock of Cardinal Corporation. In the current year Kim transfers an installment obligation, tax basis of $30,000 and fair market value of $200,000, for additional stock in Cardinal worth $200,000.
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On January 1, 2009, American Eagle borrows $65,000 cash by signing a four-year, 8% installment note. The note requires four equal total payments of accrued interest and principal on December 31 of each year from 2009 through 2012.
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Based on industry experience, warranty costs are estimated at 2% of sales in the year of sale, 4% in the year after sale, and 6% in the second year after sale. Sales and actual warranty expenditures for the first three-year period were as follows:
prepare the necessary closing entries based on the following selected accounts. accumulated depreciation
Prepare in good form a multiple-step income statement for the year 2011. Assume a 30% tax rate and that 80,000 shares of common stock were outstanding during the year.
Michael owns stock in an S corporation. The corporation sustained a net operating loss this year. Michael's pro rata share of the loss is $5,000.
Compute the value added, nonvalue added, and the total lead time of the wreath process for both the old and the new manufacturing process.
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