Exercise 2-43 (Static) Prepare Statements for a Service Company (LO 2-2)Tuscola Counseling Services is a small firm that advises job seekers on both employment and education alternatives. Robert Gibson,the founder and president, has collected the following information for year just ended.Employee trainingMarketingRent and facilities costsRevenue (client fees)SuppliesTravelWages and salariesCost of services soldRequired:Prepare an income statement for the year just ended for Tuscola Counseling Services.Note: Loss amount should be indicated with a minus sign.Total costs of services sold$ 8,30070,000Marketing and administrative costs28,000264,000TUSCOLA COUNSELING SERVICESIncome StatementFor the Year Just EndedTotal marketing and administrative costs51,00039,70081,000

The income statement for a consulting company differs from that of a manufacturing firm since there…

Exercise 2-43 (Static) Prepare Statements for a Service Company (LO 2-2) Tuscola Counseling Services is a small firm that advises job seekers on both employment and education alternatives. Robert the founder and president, has collected the following information for year just ended. Employee training Marketing Rent and facilities costs Revenue (client fees) Supplies Travel Wages and salaries $ 8,300 70,000 28,000 264,000 51,000 39,700 81,000 Required: Prepare an income statement for the year just ended for Tuscola Counseling Services. Note: Loss amount should be indicated with a minus sign.

Exercise 2-43 (Static) Prepare Statements for a Service Company (LO 2-2) Tuscola Counseling Services is a small firm that advises job seekers on both employment and education alternatives. Robert the founder and president, has collected the following information for year just ended. Employee training Marketing Rent and facilities costs Revenue (client fees) Supplies Travel Wages and salaries $ 8,300 70,000 28,000 264,000 51,000 39,700 81,000 Required: Prepare an income statement for the year just ended for Tuscola Counseling Services. Note: Loss amount should be indicated with a minus sign.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Special-Order Decision, Services, Qualitative Aspects Jason Rogers works full-time for UPS and runs a lawn-mowing service part-time after work during the warm months of April through October. Jason has two men working with him, each of whom is paid $6.00 per lawn mowing. Jason has 25 residential customers who contract with him for once-weekly lawn mowing during the months of May through September, and twice-per-month mowings during April and October. On average, Jason charges $42 per lawn mowed. Recently, LStar Property Management Services asked Jason to mow the lawn at each of its 29 rental houses every two weeks during the months of May through September. LStar has offered to pay $29 per lawn mowing, and would forego the lawn edging that normally takes Jason’s team about half of its regular mowing time. If Jason accepts the job, he can assign a one-man team to mow the rental house yards, and will have to buy an additional power lawn mower for about $370 used. Fuel to run the…
ion list Requirements 2. 3. 1. Compute Pelican Design's direct labor rate and its predetermined overhead allocation rate for 2024. K- Compute the total cost of each job. If Jackson wants to earn profits equal to 20% of service revenue, what fee should she charge each of these two clients? 4. Why does Pelican Design assign costs to jobs? estion 6 estion 7 Pelican Design, Inc. is a Web site design and consulting firm. The firm uses a job order costing system in which each client is a different job. Pelican Design assigns direct labor, licensing costs, and travel costs directly to each job. It allocates indirect costs to jobs based on a predetermined overhead allocation rate, computed as a percentage of direct labor costs. Print Done First, enter the direct costs for each job. Then Pelican Desig Estimated Cost of Delicious Treats a Data table Direct labor hours (professionals) Direct labor costs (professionals) Support staff salaries Computer leases. Office supplies Office rent Print At…
Product or DM/DL/OH/S ell/Admin Cost Period а. Annual bonus paid to top executives of the company b. Cost of paving the headquarters employee parking lot С. Steering wheels d. Salary of shop supervisor е. Power used by sanding equipment f. Cost of electrical wiring for boats g. Commissions to sales representatives, based upon the number of boats sold h. Legal department cost for the year i. Memberships for key executives in the Bass World Association j. Yearly cost of maintenance contract for robotic equipment k. Cost of normal scrap from defective hulls I. Masks for use by sanders in smoothing boat hulls m. Decals for boat hulls n. Salary of president of company о. Cost of boat for "grand prize" promotion in local bass tournament р. Special advertising campaign in Bass World q. Wood paneling for use in interior boat rim r. Cost of metal hardware for boats, such as ornaments & tie-down grasps S. Annual fee to pro-fisherman Bill Tennessee to promote the boats t. Canvas top for boats u.…
Problem 1-42 (Algo) Cost Data for Managerial Purposes (LO 1-3) Durham Parts (DP) makes a variety of products. It is organized in two divisions, Eastern and Western. The managers for each division are paid, in part, based on the financial performance of their divisions. The Western Division normally sells to outside customers but, on occasion, also sells to the Eastern Division. When it does, corporate policy states that the price must be cost plus 25 percent to ensure a "fair" return to the selling division. Western received an order from Eastern for 1,200 units. Western's planned output for the year had been 4,800 units before Eastern's order. Western's capacity is 6,000 units per year. The costs for producing those 4,800 units follow. Materials Direct labor Other costs varying with output Fixed costs (do not vary with output) Totals Total $ 374,400 182,400 144,000 288,000 $ 988,800 Per Unit $ 78 38 30 68 $ 206 Required: a. If you are the manager of the Western Division, what unit…
Problem 1-18 (Algo) Direct and Indirect Costs; Variable Costs [LO1-1, LO1-4] The following cost data pertain to the operations of Montgomery Department Stores, Inc., for the month of July. Corporate legal office salaries. Apparel Department cost of sales-Evendale Store Corporate headquarters building lease Store manager's salary-Evendale Store Apparel Department sales commission-Evendale Store Store utilities-Evendale Store Apparel Department manager's salary-Evendale Store Central warehouse lease cost Janitorial costs-Evendale Store $ $ $ $ $ 1. Total direct costs for the Apparel Department 2 Total direct costs for the Evendale Store 3. Total direct costs for the Apparel Department that are also variable costs $ 64,800 101,500 75,600 15,000 8,450 14,900 8,550 20,900 11,000 The Evendale Store is just one of many stores owned and operated by the company. The Apparel Department is one of many departments at the Evendale Store. The central warehouse serves all of the company's stores.…
Current Attempt in Progress Tamarisk Company reports the following costs and expenses in May. Factory utilities Depreciation on factory equipment Depreciation on delivery trucks Indirect factory labor Indirect materials Direct materials used Factory manager's salary From the information: $14,800 12,120 3,840 47,120 77,440 132,480 8,000 Direct labor Sales salaries Property taxes on factory building Repairs to office equipment Factory repairs Advertising Office supplies used $66,480 44,320 2,400 1,280 1,920 14,400 2,510
B-You is a consulting firm that works with managers to improve their interpersonal skills. Recently, a representative of a high-tech research firm approached B-You's owner with an offer to contract for one year with B-You to improve the interpersonal skills of a newly hired manager. B-You reported the following costs and revenues during the past year (before the proposed contract). B-YOU Annual Income Statement Sales revenue $ 560,000 Costs Labor 260,000 Equipment lease 42,000 Rent 35,000 Supplies 30,000 Officers' salaries 160,000 Other costs 20,000 Total costs $ 547,000 Operating profit (loss) $ 13,000 If B-You decides to take the contract to help the manager, it will hire a full-time consultant at $85,500. The equipment lease will increase by 20 percent. Supplies will increase by an estimated 10 percent and other costs by 15 percent. The existing building has space for the new consultant. No new offices will be necessary for this work.
Special-Order Decision, Services, Qualitative Aspects Jason Rogers works full-time for UPS and runs a lawn-mowing service part-time after work during the warm months of April through October. Jason has two men working with him, each of whom is paid $6.00 per lawn mowing. Jason has 26 residential customers who contract with him for once-weekly lawn mowing during the months of May through September, and twice-per-month mowings during April and October. On average, Jason charges $50 per lawn mowed. Recently, LStar Property Management Services asked Jason to mow the lawn at each of its 28 rental houses every two weeks during the months of May through September. LStar has offered to pay $28 per lawn mowing, and would forego the lawn edging that normally takes Jason's team about half of its regular mowing time. If Jason accepts the job, he can assign a one-man team to mow the rental house yards, and will have to buy an additional power lawn mower for about $375 used. Fuel to run the…
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image) Variable and Absorption Costing-Service CompanyJensen's Tailoring provides custom tailoring services. After the company's first year of operations, its owner prepared the following summarized data report: Sales (500 completed jobs) $100,000 Tailoring costs (550 jobs) Direct labor 47,000 Manufacturing overhead Variable 12,000 Fixed 9,000 Operating expenses Variable 5,600 Fixed 5,800 a. Prepare an income statement based on full absorption costing. b. Prepare an income statement based on variable costing. c. Assume that you must decide quickly whether to accept a special one-time order to alter 50 band costumes for $125 per costume.Which income statement…
INA TOLOWING ASTIMATAS that are relate to the operation menanments is as Thin Required information Number of employees Number of customers Number of billable hours Total overhead cost Multiple Choice O O O $37,200 $292,200 The Company uses the step method for cost allocation as the administrative service department also provides services to the machine maintenance department. Assume that costs are allocated between service departments based on the # of employees. Using the information provided, what is the total amount of machine maintenance cost that will be allocated to the operating departments? Note: Round your intermediate calculations to the nearest whole dollar. $92,000 properties 40 125 $124,000 3,000 $ 455,000 properties 20 160 2,000 $ 374,000 Maintenance 15 n/a n/a n/a Total 75 285 5,000 $ 829,000
O a. O b. 8. 0 с. O d. Assume an assembly line worker records the following time for a normal 40-hour work week, and assume the worker is paid $20 per hour. 10 hours working on Product A 12 hours working on Product B 7 hours working on Product C 5 hours working on Product D 3 hours idle time due to a power outage 3 hours cleaning up the factory What amount of the assembly line worker's wages would be considered direct labor, overhead, and period costs? Direct Labor a. b. C. e. d. 740 740 680 680 680 Overhead 60 0 120 0 60 Period costs 0 60 0 120 60
ezto.mheducation.com Homework: Cost Management and Allocation Assignment Question 7- Homework: Cost Management and Allocation Assignment- Connect Homework: Cost Management and Allocation Assignm... i Saved Help Save & Exit Submit Check my work State Financial Corp. has three service departments (Administration, Communications, and Facilities), and two production departments (Deposits and Loans). A summary of costs and other data for each department prior to allocation of service department costs for the year ended December 31 follows. 4. points Administration Communications Facilities Deposits $8,320,000 $4,600,000 447, 000 Loans Direct costs $200,000 24,000 $290,000 31,000 $253,000 20,500 Employee hours Number of employees Square footage occupied Skipped 360,000 8. 14 6. 230 130 4,600 13,800 5,100 244, 100 203,300 The costs of the service departments are allocated on the following bases: Administration, employee-hours; Communications, number of employees; and Facilities, square…