Accounting homework help

Accounting homework help. Question 1: Chapter 10 Managerial Accounting (30 mins)
Prepare a cost of goods manufactured schedule, a partial income statement, and a partial
balance sheet.
The following data were taken from the records of Clarkson Company for the fiscal year ended June
30, 2017.
Raw Material Factory Insurance $ 4,600
Inventory 7/1/16 $ 48,000 Factory Machinery
Raw Material Depreciation 16,000
Inventory 6/30/17 39,600 Factory Utilities 27,600
Finished Goods Office Utilities Expense 8,650
Inventory 7/1/16 96,000 Sales Revenue 534,000
Finished Goods Sales Discounts 4,200
Inventory 6/30/17 75,900 Plant Manager’s Salary 58,000
Work in Process Factory Property Taxes 9,600
Inventory 7/1/16 19,800 Factory Repairs 1,400
Work in Process Raw Material Purchases 96,400
Inventory 6/30/17 18,600 Cash 32,000
Direct Labor 139,250
Indirect Labor 24,460
Accounts Receivable 27,000
Instructions
(a) Prepare a cost of goods manufactured schedule. (Assume all raw materials used were direct
materials.)
(b) Prepare an income statement through gross profit.
(c) Prepare the current assets section of the balance sheet at June 30, 2017.
Question 2: Chapter 11 Cost-Volume-Profit (20 mins)
Compute break-even point and margin of safety ratio, and prepare a CVP income statement
before and after changes in business environment.
Mary Willis is the advertising manager for Bargain Shoe Store. She is currently working on a major
promotional campaign. Her ideas include the installation of a new lighting system and increased
display space that will add $24,000 in fixed costs to the $270,000 currently spent. In addition, Mary
is proposing that a 5% price decrease ($40 to $38) will produce a 20% increase in sales volume
(20,000 to 24,000). Variable costs will remain at $24 per pair of shoes. Management is impressed
with Mary’s ideas but concerned about the effects that these changes will have on the break-even
point and the margin of safety.
Instructions
(a) Compute the current break-even point in units, and compare it to the break-even point in units if
Mary’s ideas are used.
(b) Compute the margin of safety ratio for current operations and after Mary’s changes are introduced.
(Round to nearest full percent.)
(c) Prepare a CVP income statement for current operations and after Mary’s changes are introduced.
(Show column for total amounts only.) Would you make the changes suggested?
Question 3: Chapter 12 Incremental Analysis (40 mins)
Prepare incremental analysis concerning elimination of divisions.
Brislin Company has four operating divisions. During the first quarter of 2017, the company reported
aggregate income from operations of $213,000 and the following divisional results.
Division
I II III IV
Sales $250,000) $200,000 $500,000 $450,000
Cost of goods sold 200,000) 192,000) 300,000 250,000
Selling and administrative expenses $.175,000) 60,000) 60,000 50,000
Income (loss) from operations $ (25,000) $ (52,000) $140,000 $150,000
Analysis reveals the following percentages of variable costs in each division.
I II III IV
Cost of goods sold 70% 90% 80% 75%
Selling and administrative expenses 40 60 50 60
Discontinuance of any division would save 50% of the fixed costs and expenses for that division.
Top management is very concerned about the unprofitable divisions (I and II). Consensus is that one
or both of the divisions should be discontinued.
Instructions
(a) Compute the contribution margin for Divisions I and II.
(b) Prepare an incremental analysis concerning the possible discontinuance of (1) Division I and (2)
Division II. What course of action do you recommend for each division?
(c) Prepare a columnar condensed income statement for Brislin Company, assuming Division II is
eliminated. (Use the CVP format.) Division II’s unavoidable fixed costs are allocated equally to the
continuing divisions.
(d) Reconcile the total income from operations ($213,000) with the total income from operations
without Division II.

Accounting homework help