FreshPak Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit, and vegetables. The canned food box (type C) and the perishable food box (type P) have the following material and labor requirements.
Type of Box
C P
Direct material required per 100 boxes:
Paperboard ($0.40 per pound) 45 pounds 85 pounds
Corrugating medium ($0.20 per pound) 35 pounds 5 pounds
Direct labor required per 100 boxes ($20.00 per hour) 0.30 hour 0.60 hour
The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 460,000 units for each type of box. Production overhead is applied on the basis of direct labor hours.
Indirect material $13,950
Indirect labor 88,450
Utilities 43,500
Property taxes 29,000
Insurance 22,000
Depreciation 51,500
Total $248,400
The following selling and administrative expenses are anticipated for the next year:
Salaries and fringe benefits of sales personnel $133,500
Advertising 29,500
Management salaries and fringe benefits 149,000
Clerical wages and fringe benefits 46,000
Miscellaneous administrative expenses 7,400
Total $365,400
The sales forecast for the next year is as follows:
Sales Volume Sales Price
Box type C 465,000 boxes $135.00 per hundred boxes
Box type P 465,000 boxes 195.00 per hundred boxes
The following Inventory Information is available for the next year. The unit production costs for each product are expected to be the same this year and next year.
Expected Inventory Jan. 1 Desired Ending Inventory Dec. 31
Finished goods:
Box type C 13,500 boxes 8,500 boxes
Box type P 23,500 boxes 18,500 boxes
Raw material:
Paperboard 15,000 pounds 5,000 pounds
Corrugating medium 6,000 pounds 11,000 pounds
Required:
Prepare a master budget for FreshPak Corporation for the next year. Assume an Income tax rate of 40 percent.
Answers: 2
Business, 22.06.2019 00:30
Adds up the money earned by producers plus taxes paid to the goverment. a) income approach b) product approach c) expenditure approach
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Business, 22.06.2019 15:20
Martinez company has the following two temporary differences between its income tax expense and income taxes payable. 2017 2018 2019 pretax financial income $873,000 $866,000 $947,000 (2017' 2018, 2019) excess depreciation expense on tax return (29,400 ) (39,000 ) (9,600 ) (2017' 2018, 2019) excess warranty expense in financial income 20,000 9,900 8,300 (2017' 2018, 2019) taxable income $863,600 $836,900 $945,700(2017' 2018, 2019) the income tax rate for all years is 40%. instructions: a. prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2017, 2018, and 2019. b. assuming there were no temporary differences prior to 2016, indicate how deferred taxes will be reported on the 2016 balance sheet. button's warranty is for 12 months. c. prepare the income tax expense section of the income statement for 2017, beginning with the line, "pretax financial income."
Answers: 3
Business, 22.06.2019 17:40
Take it all away has a cost of equity of 11.11 percent, a pretax cost of debt of 5.36 percent, and a tax rate of 40 percent. the company's capital structure consists of 67 percent debt on a book value basis, but debt is 33 percent of the company's value on a market value basis. what is the company's wacc
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Business, 22.06.2019 21:00
Identify whether the statements are true or false by dragging and dropping the appropriate term into the bin provided. long-run economic growth is unlikely to be sustainable because of finite natural resources. in the modern economy, countries that possess few domestic natural resources essentially have no chance to develop economically. finding alternatives to natural resources will be very important to long-term economic growth. in the modern economy, human and physical capital are generally less important in productivity than natural resources. in the 19th century, countries with the highest per capita gdp were nearly always abundant in minerals and productive farming land.
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