Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Lybrand Company is a leading manufacturer of sunglasses. One of Lybrand's products protects the eyes from ultraviolet rays. An upscale sporting goods store has contacted Lybrand about purchasing 15,000 pairs of these sunglasses. Lybrand's unit manufacturing cost, based on a full capacity of 100,000 units, is as follows:
Direct materials
Direct labor
Fixed overhead
Variable overhead
$6 per unit
$ 4per unit
$ 9per unit
$ 6per unit
Lybrand also incurs selling and administrative costs of $75,000 fixed costs plus $2 per pair for sales commissions. The company has plenty of excess manufacturing capacity to use in making the sunglasses. Lybrand's normal price for these sunglasses is $40 per pair. The sporting goods store has offered to pay $35 per pair. Since the special order was initiated by the sporting goods store, no sales commission will be paid.
a) Should Lybrand Company accept the offer? Be sure to show your computations in arriving at your answer.
b) What qualitative factors should be considered in making your decision?
Gamma Corporation, as S corp. has a fiscal year ending 03-31. It is required to switch to a calendar-year tax year. How many months of income would a calendar-year taxpayer be required to report in the year of change?
Interest is paid semiannually on December 1 and June 1 and the bonds mature on December 1, 2014. Menke uses straight-line amortization. Ignoring income taxes, the amount reported in Menke's 2010 income statement from this investment should be?
The owner's equity in a business amounted to $56,000 at the beginning of the year and $100,000 at the end of the year. The owner had made no additional investments and had withdrawn $19,000 during the year. The net income for the year amounted to ..
assume the facts in the preceding exercise except that zeile company has chosen not to accrue paid sick leave until
Is it probable that the use of information technology will eventually eliminate the audit trail, making it impossible to trace individual transactions from their origin to the summary total on the financial statements?
Without regard for this investment, Keefe independently earns $300,000 in net income during 2011. All net income is earned evenly throughout the year. What is the controlling interest in consolidated net income for 2011?
How are franchise fees, royalty fees, and KKM&D sales with these joint ventures reflected in the Company's consolidated financial statements? What issues might arise in analyzing intercompany sales transactions?
Delta Life Insurance Co. prepares its financial statements on an accounting basis insurance companies use pursuant to the rules of a state insurance commission. If Wall, CPA, Delta's auditor, discovers that the statements are not suitably titled, ..
when companies accumulate costs they generally use either a job-order or a process costing system. the type of system
Lyons company has a tax rate of 40% and income taxes payable of $72,000 at the end of 2010. There were no deferred taxes at the beginning of 2010. What is the amount of the deferred tax liability at the end of 2010?
How are analytical procedures used in an audit engagement? What premise underlies the use of analytical procedures in auditing? What sources of information can an auditor use to develop expectations? Provide examples. - Answer 100-150 words.
Terry pays $8,000 this year to become a charter member of Mammoth University's Athletic Council. The membership ensures that Terry will receive choice seating at all of Mammoth's home basketball games. In addition, Terry pays $2,200 (the regular r..
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd