Wexford Industrial Supply is considering a new project with estimated depreciation of $26,000, fixed costs of $79,000, and total sales of $187,000. The variable costs per unit are estimated at $11.80. What is the accounting break-even level of production?
The Arcadia Manufacturing Company, based in Arcadia, FL is one of the fastest- growing companies in its industry. According to Ms. Prinze, the company’s production vice president, keeping up-to-date with technological changes is what makes the company successful. Prinze believes…
On December 31, 2013, Gifts Galore, Inc. appropriately changed its inventory valuation method from weighted-average cost to FIFO method for financial statement and income tax purposes. The change will result in a $1,500,000 increase in the beginning inventory at January…
Which of the following accounting revenue recognition methods is an example of recognizing revenue as production is finished? A. Installment sales method B. Percentage-of-completion method C. Completed-contract method D. Cost-recovery method
During 2014, a construction company changed from the completed-contract method to the percentage-of-completion method for accounting purposes but not for tax purposes. Gross profit figures under both methods for the past three years follow. Completed-Contract: 2012, $595,000; 2013, $730,000; 2014,…
(1) Do you agree with the accounting rules associated with this receivable issue? (2) Why should inventories be included in (a) a statement of financial position and (b) the computation of net income?
The double entry system of accounting has been in existence for over 500 years. We still use it because it provides a way to check our work for accuracy. Even the simplest accounting software programs use this system. Discuss the…
Calculate the accounting as well as the finance break-even point for the following project: initial investment of $500,000, revenues of $700,000, $100,000 fixed costs, $75,000 depreciation, 60% variable costs, and a 35% tax rate. What happens to the break-even if…
Locate article from past 12 months discussing ethics in accounting as well as financial decision-making. Employ the Internet, or other resources to locate an article discussing ethics in accounting and financial decision making. Address the following items: Summarize the article.…
The Calvin-dogwood partnership owns inventory that was purchased for 65,000, has a current replacement cost of 64500 and is priced to sell for 95,000. At what amount should the inventory be recorded in the accounts of the new partnership if…
