Intermediate Accounting: Reporting and Analysis (Looseleaf)
2nd Edition
ISBN: 9781285453859
Author: WAHLEN
Publisher: Cengage
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Question
Chapter 22, Problem 3MC
To determine
Find the correct option, the option which explains the way in which the effect of adjustment of inventory would be reported by Company B, if the company changes the accounting principle from LIFO to FIFO.
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Cost Pools
Budgeted Costs
Cost Driver
Practical Capacity
Budgeted Activity for S-101
Budgeted Activity for C-110
Setup activity
250000
Setup hours
5000
2500
2350
Packing and shipping
50000
Number of shipments
2000
1200
775
Inspection
30000
Number of batches
1000
250
700
Machining
750000
Units produced
150000
100000
40000
Purchase ordering
40000
Number of orders
300
50
110
1. Which Cost Pool is approximately 22 percent of the total budgeted costs?
2. What percentage of the total budgeted costs does Machining take up?
3. What is the percentage of the total budgeted costs taken up by the smallest Cost Pool?
4. Which Cost Pool has 1.25 percent slack?
5. Which Cost Pool has the highest percent slack?
6. In the Inspection Cost Pool, what is the amount of difference between budgeted costs and the budgeted activity for both products?
7. In how many cost pools is the S-101 manufacturing overhead (MO) greater than the C-110 manufacturing overhead (MO)?
8. In which Cost Pools is…
Financial statements for Askew Industries for 2024 are shown below (in thousands):
2024 Income Statement
Net sales
$ 8,600
Cost of goods sold
(6,050)
Gross profit
2,550
Operating expenses
(1,850)
Interest expense
(100)
Income tax expense
(240)
Net income
$ 360
Comparative Balance Sheets
December 31
2024
2023
Assets
Cash
$ 500
$ 400
Accounts receivable
500
300
Inventory
700
500
Property, plant, and equipment (net)
1,000
1,100
$ 2,700
$ 2,300
Liabilities and Shareholders’ Equity
Current liabilities
$ 500
$ 250
Bonds payable
900
900
Common stock
500
500
Retained earnings
800
650
$ 2,700
$ 2,300
Calculate the following ratios for 2024.
Note: Consider 365 days a year. Round your intermediate calculations and final answers to 2 decimal places.
Ans plz general accounting
Chapter 22 Solutions
Intermediate Accounting: Reporting and Analysis (Looseleaf)
Ch. 22 - Prob. 1GICh. 22 - Prob. 2GICh. 22 - Prob. 3GICh. 22 - What steps are necessary to apply the...Ch. 22 - Prob. 5GICh. 22 - Prob. 6GICh. 22 - Prob. 7GICh. 22 - Prob. 8GICh. 22 - Define a change in estimate. What is the proper...Ch. 22 - Prob. 10GI
Ch. 22 - How is a change in depreciation method accounted...Ch. 22 - Describe a change in a reporting entity. How does...Ch. 22 - Prob. 13GICh. 22 - Prob. 14GICh. 22 - Prob. 15GICh. 22 - Prob. 16GICh. 22 - Prob. 17GICh. 22 - Prob. 18GICh. 22 - Prob. 19GICh. 22 - Prob. 20GICh. 22 - The cumulative effect of an accounting change...Ch. 22 - When a change in accounting principle is made...Ch. 22 - Prob. 3MCCh. 22 - A change in the expected service life of an asset...Ch. 22 - Prob. 5MCCh. 22 - Generally, how should a change in accounting...Ch. 22 - Prob. 7MCCh. 22 - A company has included in its consolidated...Ch. 22 - Prob. 9MCCh. 22 - Prob. 10MCCh. 22 - Prob. 1RECh. 22 - Prob. 2RECh. 22 - Prob. 3RECh. 22 - Prob. 4RECh. 22 - Bloom Company had beginning unadjusted retained...Ch. 22 - Suppose that Blake Companys total pretax...Ch. 22 - Bliss Company owns an asset with an estimated life...Ch. 22 - At the end of 2016, Framber Company received 8,000...Ch. 22 - Prob. 9RECh. 22 - Prob. 10RECh. 22 - Prob. 11RECh. 22 - Prob. 12RECh. 22 - The following are independent events: a. Changed...Ch. 22 - Prob. 2ECh. 22 - The following are independent events: a. A...Ch. 22 - Prob. 4ECh. 22 - Prob. 5ECh. 22 - Prob. 6ECh. 22 - Prob. 7ECh. 22 - Prob. 8ECh. 22 - Prob. 9ECh. 22 - Prob. 10ECh. 22 - Prob. 11ECh. 22 - The following are independent errors made by a...Ch. 22 - The following are independent errors made by a...Ch. 22 - Refer to the information in E22-13. Required:...Ch. 22 - Prob. 15ECh. 22 - Prob. 16ECh. 22 - Prob. 1PCh. 22 - Prob. 2PCh. 22 - Prob. 3PCh. 22 - Prob. 4PCh. 22 - Prob. 5PCh. 22 - Prob. 6PCh. 22 - Prob. 7PCh. 22 - At the beginning of 2017, Holden Companys...Ch. 22 - Prob. 9PCh. 22 - Prob. 10PCh. 22 - Prob. 11PCh. 22 - Prob. 12PCh. 22 - Prob. 13PCh. 22 - Prob. 14PCh. 22 - There are three types of accounting changes:...Ch. 22 - Prob. 2CCh. 22 - Prob. 3CCh. 22 - When the FASB issues a new generally accepted...Ch. 22 - It is important in accounting theory to be able to...Ch. 22 - Prob. 6CCh. 22 - Prob. 7CCh. 22 - Prob. 8CCh. 22 - Prob. 9CCh. 22 - Prob. 10C
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