Wiley plus chapter 6 | Accounting homework help

 

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(a)

 

Prepare an incremental analysis for the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

   

Reject
Order

 

Accept
Order

 

Net Income
Increase
(Decrease)

 

Revenues

 

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(b)
 Compute the labor price and quantity variances.

Labor price variance

 

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Labor quantity variance

 

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(c)
 Compute the labor price and quantity variances, assuming the standard is 4.18 hours of direct labor at $12.29 per hour.

Labor price variance

 

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Labor quantity variance

 

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Problem 11-1A

Costello Corporation manufactures a single product. The standard cost per unit of product is shown below.

Direct materials—2 pound plastic at $6.25 per pound

 

$ 12.50

Direct labor—2.00 hours at $12.00 per hour

 

24.00

Variable manufacturing overhead

 

14.00

Fixed manufacturing overhead

 

6.00

Total standard cost per unit

 

$56.50


The predetermined manufacturing overhead rate is $10 per direct labor hour ($20.00 ÷ 2.00). It was computed from a master manufacturing overhead budget based on normal production of 11,400 direct labor hours (5,700 units) for the month. The master budget showed total variable costs of $79,800 ($7.00 per hour) and total fixed overhead costs of $34,200 ($3.00 per hour). Actual costs for October in producing 3,100 units were as follows.

Direct materials (6,390 pounds)

 

$ 40,704

Direct labor (6,030 hours)

 

74,048

Variable overhead

 

44,080

Fixed overhead

 

20,070

    Total manufacturing costs

 

$178,902


The purchasing department buys the quantities of raw materials that are expected to be used in production each month. Raw materials inventories, therefore, can be ignored.

(a) Compute all of the materials and labor variances. (Round answers to 0 decimal places, e.g. 125.)

Total materials variance

 

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Materials price variance

 

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Materials quantity variance

 

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Total labor variance

 

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Labor price variance

 

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Labor quantity variance

 

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(b)
 Compute the total overhead variance.

Total overhead variance

 

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Bracewell Company reported net income of $194,600 for 2014. Bracewell also reported depreciation expense of $40,160 and a gain of $5,580 on disposal of plant assets. The comparative balance sheet shows an increase in accounts receivable of $15,210 for the year, a $17,790 increase in accounts payable, and a $3,400 decrease in prepaid expenses.

Prepare the operating activities section of the statement of cash flows for 2014. Use the indirect method. (Show amounts that decrease cash flow with either a – sign e.g. -15,000 or in parenthesis e.g. (15,000).)

BRACEWELL COMPANY
Partial Statement of Cash Flows
For the Year Ended December 31, 2014

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Exercise 13-7

Meera Corporation’s comparative balance sheets are presented below.

MEERA CORPORATION
Comparative Balance Sheets
December 31

   

2014

 

2013

Cash

 

$14,270

   

$10,270

 

Accounts receivable

 

20,780

   

23,540

 

Land

 

20,320

   

25,530

 

Buildings

 

69,710

   

69,710

 

Accumulated depreciation—buildings

 

(15,020

)

 

(10,720

)

   Total

 

$110,060

 

 

$118,330

 

 

           

Accounts payable

 

$12,270

   

$27,790

 

Common stock

 

74,530

   

72,510

 

Retained earnings

 

23,260

 

 

18,030

 

   Total

 

$110,060

 

 

$118,330

 


Additional information:

1.

 

Net income was $22,338. Dividends declared and paid were $17,108.

2.

 

All other changes in noncurrent account balances had a direct effect on cash flows, except the change in accumulated depreciation. The land was sold for $4,850.


(a) Prepare a statement of cash flows for 2014 using the indirect method.
 (Show amounts that decrease cash flow with either a – sign e.g. -15,000, or in parenthesis e.g. (15,000).)

MEERA CORPORATION
Statement of Cash Flows
For the Year Ended December 31, 2014

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Dividends

 

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(c) Indicate where each of the cash inflows or outflows identified in (b) would be classified on the statement of cash flows.

Common stock

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Dividends

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Exercise 14-3

The comparative condensed balance sheets of Garcia Corporation are presented below.

GARCIA CORPORATION
Comparative Condensed Balance Sheets
December 31

   

2014

 

2013

Assets

       

    Current assets

 

$ 74,450

 

$ 80,690

    Property, plant, and equipment (net)

 

98,370

 

90,210

    Intangibles

 

25,460

 

38,040

      Total assets

 

$198,280

 

$208,940

Liabilities and stockholders’ equity

       

    Current liabilities

 

$ 42,300

 

$ 49,060

    Long-term liabilities

 

143,930

 

150,570

    Stockholders’ equity

 

12,050

 

9,310

      Total liabilities and stockholders’ equity

 

$198,280

 

$208,940

(a) Prepare a horizontal analysis of the balance sheet data for Garcia Corporation using 2013 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000). (20%). Round percentages to 1 decimal place, e.g. 12.3%.)

GARCIA CORPORATION
Condensed Balance Sheets
December 31

   

2014

 

2013

   

Increase
(Decrease)

 

Percentage
Change from 2013

 

Assets

                   

   Current Assets

 

$74,450

 

$80,690

   

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