financeIn its 20X7 consolidated income statement, Plate Development Company reported consolidated net income of $961,000 and$39,000 of income assigned to the 30 percent non-controlling interest in its only subsidiary, Subsidence Mining Inc. During the year, Subsidence had sold a previously mined parcel of land to Plate for a new housing development; the sales price to Plate was $500,000, and the land had a carrying amount at the time of sale of$560,000. At the beginning of the previous year, Plate had sold excavation and grading equipment to Subsidence for $240,000; the equipment had a remaining life of six years as of the date of sale and a book value of$210,000. The equipment originally had cost $350,000 when Plate purchased it on January 2, 20X2. The equipment never was expected to have any salvage value.
Plate had acquired 70 percent of the voting shares of Subsidence eight years earlier when the fair value of its net assets was$200,000 higher than book value, and the fair value of the non-controlling interest was $60,000 more than a proportionate share of the book value of Subsidence's net assets. All the excess over the book value was attributable to intangible assets with a remaining life of 10 years from the date of combination. Both parent and subsidiary use straight-line amortization and depreciation. Assume Plate uses the fully adjusted equity method.
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**Required**
Compute Subsidence's 20X7 reported net income. financeSager Company manufactures variations of its product, a technopress, in response to custom orders from its customers. On May 1, the company had no inventories of work in process or finished goods but held the following raw materials.
$$
\begin{array}{lrr}
\text{Material M}&\text{200 units @ \$250 =}&\text{\$\hspace{1pt}50,000}\\
\text{Material R}&\text{95 units @ 180 =}&\text{17,100}\\
\text{Paint}&\text{55 units @ 75 =}&\underline{\text{\hspace{11pt}4,125}}\\
\text{Total cost}&&\underline{\underline{\text{\$\hspace{1pt}71,225}}}\\
\end{array}
$$
On May 4, the company began working on two technopresses: Job 102 for Worldwide Company and Job 103 for Reuben Company
**Required**
Prepare job cost sheets for Jobs 102 and 103. Prepare materials ledger cards for Material M, Material R, and paint. Enter the beginning raw materials inventory dollar amounts for each of these materials on their respective ledger cards. Then, follow the instructions in this list of activities.
g. Applied overhead cost to Job 103 based on the job’s direct labor to date.
***Instructions:*** Enter overhead on the job cost sheet but do not make a journal entry at this time. 15th Edition•ISBN: 9780073401805 (12 more)Douglas A. Lind, Samuel A. Wathen, William G. Marchal1,236 solutions
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