27. Computing the amount of equity income and preparing [I] consolidation journal entriesAssume that a parent company sells inventory to its wholly owned subsidiary. The subsidiary, ulti-mately, sells the inventory to customers outside of the consolidated group. You have compiled the fol-lowing data for the years ending 2012 and 2013:Subsidiary Net IncomeInventory SalesGross Profit on Unsold InventoriesReceivable (Payable)2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$300,000$50,000$18,000$20,0002012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$200,000$40,000$13,500$15,000Assum e that inventory not remaining at the end of the year was sold outside of the consolidated group. a. How much Equity Income should the parent report in its pre-consolidation income statement the year ending 2013 assuming that it uses the equity method of accounting for its Equity Investment

Zachary company produces commercial gardening equipment. since production is highly automated, the company allocates its overhead costs to product lines using activity-based costing. the costs and cost drivers associated with the four overhead activity cost pools follow: activities unit level batch level product level facility level cost $ 64,800 $ 27,730 $ 15,000 $ 154,000 cost driver 2,400 labor hrs. 47 setups percentage of use 11,000 units production of 780 sets of cutting shears, one of the company’s 20 products, took 240 labor hours and 7 setups and consumed 15 percent of the product-sustaining activities. required: (a) had the company used labor hours as a company wide allocation base, how much overhead would it have allocated to the cutting shears? (b) how much overhead is allocated to the cutting shears using activity-based costing? (c) compute the overhead cost per unit for cutting shears first using activity-based costing and then using direct labor hours for allocation if 780 units are produced. if direct product costs are $150 and the product is priced at 30 percent above cost for what price would the product sell under each allocation system? (d) assuming that activity-based costing provides a more accurate estimate of cost, indicate whether the cutting shears would be over- or underpriced if direct labor hours are used as an allocation base. explain how over-or undercosting can affect vaulker's profitability. (e) comment on the validity of using the allocated facility-level cost in the pricing decision. should other costs be considered in a cost- plus pricing decision? if so, which ones? what costs would you include if you were trying to decide whether to accept a special order?

Luggage world buys briefcases with an invoice date of september 28. the terms of sale are 2/10 eom. what is the net date for this invoice

Based on this model, households earn income whenfirms purchasegoods and services in factor markets. suppose eileen earns $575 per week working as an analyst for a-plus accountants. she uses $10 to buy a box of aspirin at pillmart pharmacy. pillmart pharmacy pays clancy $250 per week to work the cash register. clancy uses $125 to purchase tax services from a-plus accountants. identify whether each of the following events in this scenario occurs in the factor market or the product market. event factor market product market eileen earns $575 per week working for a-plus accountants. eileen spends $10 to buy a box of aspirin. clancy spends $125 to purchase tax services from a-plus accountants. which of the elements of this scenario represent a flow from a firm to a household