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Aleksandr [31]
2 years ago
5

BuyCo, Inc., holds 25 percent of the outstanding shares of Marqueen Company and appropriately applies the equity method of accou

nting. Excess cost amortization (related to a patent) associated with this investment amounts to $10,000 per year. For 2020, Marqueen reported earnings of $100,000 and declares cash dividends of $30,000. During that year, Marqueen acquired inventory for $50,000, which it then sold to BuyCo for $80,000. At the end of 2020, BuyCo continued to hold merchandise with a transfer price of $32,000. What Equity in Investee Income should BuyCo report for 2020
Business
1 answer:
Oxana [17]2 years ago
3 0

Answer:

$12,000

Explanation:

Calculation for What Equity in Investee Income should BuyCo report for 2020

Equity income accrual $25,000

($100,000 × 25%)

Less: deferral of intra-entity unrealized gross profit ($3,000)

Less: Patent amortization ($10,000)

Equity in investee income $12,000

Calculation for Intra-entity unrealized gross profit

Profit within remaining inventory $12,000

× Ownership percentage 25%

Intra-entity unrealized gross profit 3,000

($12,000*25%)

Therefore Equity in Investee Income should BuyCo report for 2020 is $12,000

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CodeHead Software Inc. does software development. One important activity in software development is writing software code. The m
Irina18 [472]

Answer:

Explanation:

Standard hours per week = 40 hours

Standard rate per hour = $32

Actual rate per hour = $40

Labour rate variance = 40 - 32 = $8 (unfavourable)

Actual cost per week = 40 × 40 = $1600

Standard cost per week = 40 × 32 = $1280

Labour cost variance = actual cost per week - standard cost per week

= 1600 - 1280

= $320 (unfavourable)

Actual codes written in first week = 5650

Standard codes per week = 5 × 25 × 40 = 5000

Actual cost per code = 1600/5660 = $0.2832

Standard cost per code = 1280/5000 = 0.256

Labour efficiency variance = 0.2832 - 0.256 = $0.0272 (unfavourable)

If the team generated 4,650 lines of code according to the original plan:

Code generated = 4650

Number of programmers = 5

Average codes per hour per programmer = 25

Total codes per hour = 25 × 5 = 125

Standard codes per week = 40 × 125 = 5000

Actual time to write 4650 codes = 4650/125 = 37.2 hours

Standard time = 40 hours

Idle time = 40 - 37.2 = 2.8 hours

Labour time variance = 2.8 hours

Cost of idle time = 2.8 × 32 = $89.6 (unfavourable)

4 0
2 years ago
Builder Products, Inc., uses the weighted-average method in its process costing system. It manufactures a caulking compound that
geniusboy [140]

Answer:

Explanation:

Beginning WIP inventory                    74000  

Add: Units started during May           390000  

Less: Ending inventory                        34000  

Units completed and transferred       430000  

1                        Equivalent Units

                                                            Whole units Materials    Conversion

Beginning WIP inventory                    74000           74000        74000

Started & completed                          356000     356000        356000

Ending inventory                                34000           23800         10200

Units accounted for                           464000         453800        440200

                                                                Materials Conversion  

Equivalent units of production         453800    440200  

2    

Cost Data:                                                 Total Material Conversion

Beginning WIP inventory                  142800     98800       44000

Current costs                                      755960    513830      242130

Total cost to account for                    898760    612630      286130

Divided by Equivalent units                                    453800 440200

Cost per Equivalent unit                           2.00      1.35 0.65

Materials Conversion  

Cost per Equivalent unit                           1.35 0.65  

3    

Cost Assignment:    

Ending Work in process:    

Material                                                 32130  

Conversion                                            6630  

Total Ending Work in process             38760  

4    

Cost of units completed and transferred    

Material                                                 580500  

Conversion                                            279500  

Total                                                       860000  

5    

Cost to be accounted for:    

Beginning WIP inventory                       142800  

Current costs                                          755960  

Total costs to be accounted for            898760  

Cost accounted for as follws:    

Cost of units completed and transferred 860000  

Cost of ending work in process            38760  

Total costs accounted for                      898760  

6 0
3 years ago
Some recent financial statements for Smolira Golf Corp. follow. SMOLIRA GOLF CORP. 2017 and 2018 Balance Sheets Assets Liabiliti
VMariaS [17]

Answer:

the requirements are missing, so I looked for a similar question:

a. Current ratio = current assets / current liabilities

2017 = $62,976 / $50,555 = 1.25

2018 =  $67,600 / $57,000  = 1.19

b. Quick ratio = (current assets - inventory) / current liabilities

2017 = ($62,976 - $26,042) / $50,555 = 0.73

2018 = ($67,600 - $27,500) / $57,000  = 0.70

c. Cash ratio = cash / current liabilities

2017 =  $24,086 / $50,555 = 0.48

2018 = $24,500 / $57,000 = 0.43

d. Total asset turnover = sales / average total assets

2018 = $373,473 / [($391,671 + $430,000) / 2] = 0.91

e. Inventory turnover = cost of goods sold / average inventory

2018 = $254,500 / [($26,042 + $27,500) / 2] = 9.51

f. Receivables turnover = sales / average accounts receivable

2018 = $373,473 / [($12,848 + $15,600) / 2] = 26.26

g. Profit margin = net profit /  total sales

2018 = $54,319 / $373,473 = 14.54%

h. Return on assets = net income / average total assets

2018 = $54,319 / [($391,671 + $430,000) / 2] = 13.22%

i. Return on equity = net income / average equity

2018 = $54,319 / [($281,116+ $311,435) / 2] = 18.33%

8 0
3 years ago
On January 1, 2015, Brooks Inc. borrows $90,000 from a bank and signs a 5% installment note requiring four annual payments of $2
Black_prince [1.1K]

Answer:

The journal entry which is to be recorded for the first installment payment on the note is shown below:

Explanation:

The journal entry is as on December 31, 2015

 Interest Expense A/c.................Dr  $4,500

Notes Payable A/c.......................Dr  $20,881

              Cash A/c..............................Cr   $25,381

Working Note:

Interest expense = Borrowed amount × 5%

= $90,000  × 5%

= $4,500

Note Payable = Cash - Interest expense

= $25,381 - $4,500

= $20,881

5 0
3 years ago
.What factors negatively affected the economy of appalachia in the 1950s?\
Vladimir79 [104]
There were a few factors that occurred in the 1950's to affect the economy such as automated loader and undercutting machines in the coal mines. The people of Appalachia depended on the coal mines for their incomes. Coal prices declined in the 1950's and this led to numerous lay-offs and people being unemployed with little jobs in the community. 
4 0
3 years ago
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