Standard Company has a relatively high profit margin on its sales, and Jewel Company has a substantially lower profit margin. Standard holds 55 percent of Jewel’s common stock and includes Jewel in its consolidated statements. Standard and Jewel reported sales of $100,000 and $60,000, respectively, in 2014. Sales increased to $120,000 and $280,000 for the two companies in 2015.
The average profit margins of the two companies remained constant over the two years at 60 percent and 10 percent, respectively.
Standard’s treasurer was aware that the subsidiary was awarded a major new contract in 2015 and anticipated a substantial increase in net income for the year. She was disappointed to learn that consolidated net income allocated to
the controlling interest had increased by only 38 percent even though sales were 2.5 times higher than in 2014. She is not trained in accounting and does not understand the fundamental processes used in preparing Standard’s consolidated income statement. She does know, however, that the earnings per share figures reported in the consolidated income statement are based on income allocated to the controlling interest and she wonders why that number isn’t higher.
Required:
As a member of the accounting department, you have been asked to prepare a memo to the treasurer explaining how consolidated net income is computed and the procedures used to allocate income to the parent company and to the
subsidiary’s noncontrolling shareholders. Include in your memo citations to or quotations from the authoritative literature.
To assist the treasurer in gaining a better understanding, prepare an analysis showing the income statement amounts actually reported for 2014 and 2015.

Assuming no direct factory overhead costs (i.e., inventory carry costs) and $3 million dollars in combined promotion and sales budget, the deft product manager wishes to achieve a product contribution margin of 35%. given their product currently is priced at $35.00, what would they need to limit the material and labor costs to?

What do economists mean when they use the latin expression ceteris paribus?

Required information problem 15-1a production costs computed and recorded; reports prepared lo c2, p1, p2, p3, p4 [the following information applies to the questions displayed below. marcelino co.'s march 31 inventory of raw materials is $84,000. raw materials purchases in april are $540,000, and factory payroll cost in april is $364,000. overhead costs incurred in april are: indirect materials, $59,000; indirect labor, $26,000; factory rent, $38,000; factory utilities, $19,000; and factory equipment depreciation, $58,000. the predetermined overhead rate is 50% of direct labor cost. job 306 is sold for $670,000 cash in april. costs of the three jobs worked on in april follow. job 306 job 307 job 308 balances on march 31 direct materials $30,000 $36,000 direct labor 25,000 14,000 applied overhead 12,500 7,000 costs during april direct materials 133,000 210,000 $100,000 direct labor 105,000 150,000 101,000 applied overhead ? ? ? status on april 30 finished (sold) finished in process (unsold) required: 1. determine the total of each production cost incurred for april (direct labor, direct materials, and applied overhead), and the total cost assigned to each job (including the balances from march 31). a-materials purchases (on credit). b-direct materials used in production. c-direct labor paid and assigned to work in process inventory. d-indirect labor paid and assigned to factory overhead. e-overhead costs applied to work in process inventory. f-actual overhead costs incurred, including indirect materials. (factory rent and utilities are paid in cash.) g-transfer of jobs 306 and 307 to finished goods inventory. h-cost of goods sold for job 306. i-revenue from the sale of job 306. j-assignment of any underapplied or overapplied overhead to the cost of goods sold account. (the amount is not material.) 2. prepare journal entries for the month of april to record the above transactions. 3. prepare a schedule of cost of goods manufactured. 4.1 compute gross profit for april. 4.2 show how to present the inventories on the april 30 balance sheet.