At fiscal year end, December 31, 2018, Somerset Corporation

A company has two supporting departments, Maintenance and Information
May 5, 2020
Discuss the differences between the inventory accounting methods
May 5, 2020

At fiscal year end, December 31, 2018, Somerset Corporation

had total stockholders’ equity of $4,000,000. On FY 2018 year end, Somerset Corporation had Common Stock account of $1,950,000 of $10 par value common stock and Preferred Stock account of $150,000 of $100 par value.  There was no treasury stock. The preferred stock was noncumulative and had a call price of $101.  Use this information to determine the book value per share of Common Stock as of end of the FY 2018: (Round your answer to the nearest penny.)
-On January 2, 2018, All Good Company purchased 6,000 shares of the stock of Big Bad Company, and DID obtain significant influence.  The investment is intended as a long-term investment.  The stock was purchased for $13 per share, and represents a 30% ownership stake. Big Bad Company made $500,000 of net income in 2018, and paid dividends to All Good Company of $40,000 on December 15, 2018.  Big Bad Company’s stock was trading on the open market for $17 per share at the end of the year.  Use this information to determine the book value of the investment that should be reported at year end by All Good Company. Round to nearest whole dollar. 3.Bravo Company manufactures quality gentlemen’s clothing.  The following selected financial information for the fiscal year 2016 is provided
Item
Amount
Sales . $100,000
Cost of Goods Manufactured 75,000
Direct Material Purchased 40,000
Factory Overhead 10,000
Work in Process – January 1 30,000
Work in Process – December 31 15,000
Direct Material – December 31 10,000
Finished Goods Inventory – December 31 60,000
Net Income 15,000
Direct Materials used 30,000
Cost of Goods Sold 55,000

-Use this information to determine the dollar amount of Bravo’s Direct Labor Costs for the fiscal year 2016. (Round dollar values & enter as whole dollars only.)

 
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