was/ui/v2/assessment-player/index.html?launchld=b37a2425-9b27-464f-aaf1-dcef4710abdf#/question/1 Question 2 of 2 < > View Policies -/20 Current Attempt in Progress Benton Corporation produces two grades of non-alcoholic wine from grapes that it buys from California growers. It produces and sells roughly 3,000,000 liters per year of a low-cost high volume product called CoolDay. It sells this in 600,000 5-liter jugs. Benton also produces and sells roughly 300.000 liters per year of a low-volume, high-cost product called LiteMist. LiteMist is sold in 1-liter bottles Based on recent data, the CoolDay product has not been as profitable as LiteMist. Management is considering dropping the inexpensive CoolDay line so it can focus more attention on the LiteMist product. The LiteMist product already demands considerably more attention than the CoolDay line. Jack Eller, president and founder of Benton, is skeptical about this idea. He points out that for many decades the company produced only the CoolDay line and that it was always quite profitable. It wasn't until the company started producing the more complicated LiteMist wine that the profitability of CoolDay declined. Prior to the introduction of LiteMist, the company had basic equipment simple growing and production procedures, and virtually no need for quality control. Because LiteMist is bottled in 1-liter bottles, it requires considerably more time and effort, both to bottle and to label and box than does CoolDay. The company must bottle and handle 5 times as many bottles of LiteMist to sell the same quantity as CoolDay. CoolDay requires 1 month of aging: LiteMist requires 1 year. CoolDay requires cleaning and inspection of equipment every 10,000 liters: LiteMist requires such maintenance every 600 liters Jack has asked the accounting department to prepare an analysis of the cost per liter using the traditional costing approach and using activity-based costing. The following information was collected CoolDay LiteMist Direct materials per liter $0.40 $1.20 Direct labor cost per liter $0.50 $0.90 Direct labor hours per liter 0.07 0.07 Total direct labor hours 210,000 21,000 Estimated Use of Cost Drivers per Product Activity Cost Pools Cost Drivers Estimated Overhead Estimated Use of Cost Drivers CoolDay LiteMist Grape processing Cart of grapes $146.909 6,600 6,000 600 Aging Total months 745,800 6.600,000 3,000,000 3,600,000 Bottling and corking Number of bottles 288.000 900,000 600,000 300,000 Labeling and boxing Number of bottles 200,700 900,000 600.000 300,000 Maintain and inspect equipment Number of 241,600 800 350 450 inspections widence LO4- P docx 0 A Evidence LO4, PC docx Evidence LO2, PC...docx 30C Direct labor cost per liter $0.50 $0.90 Direct labor hours per liter 0.07 0.07 Total direct labor hours 210,000 21,000 Estimated Use Estimated Use of Cost Drivers per Product Estimated of Activity Cost Pools Cost Drivers Overhead Cost Drivers CoolDay LiteMist Grape processing Cart of grapes $146,909 6,600 6.000 600 Aging Total months 745,800 6,600,000 3.000.000 3,600,000 Bottling and corking Number of bottles 288,000 900,000 600,000 300,000 Labeling and boxing Number of bottles 200,700 900,000 600,000 300,000 Maintain and inspect Number of 241,600 800 350 450 equipment inspections Answer each of the following questions $1,623,009 (a) Under traditional product costing using direct labor hours, compute the total manufacturing cost per liter of both products (Round answers to 3 decimal places, eg. 12.250) (b) CoolDay Manufacturing cost per liter $ Save for Later LiteMist Attempts: 0 of 1 used Submit Answer The parts of this question must be completed in order. This part will be available when you complete the part above Under traditional product costing using direct labor hours, compute the total manufacturing cost per liter of both products. (Hound answers b Manufacturing cost per liter LINK TO TEXT CoolDay Under ABC, prepare a schedule showing the computation of the activity-based overhead rates. (Round overhead rates to 3 decimal places Activity Cost Pools Grape processing Aging Bottling and corking Labeling and boxing Maintain and inspect equipment Estimated Overhead Expected Use of Cost Drivers Activity-Based Overboad Rates per cart per month per bottle per bottle per inspection Prepare a schedule signing ach activity's averhead at pool to each product, and on the ne of out drivers Indate of overhead add he decimal places 12.350 d cest assigned to 0 decimal places 1225) Grape proming Aging outting and coking Labeling and boxing CoolDay Compute the total manufacturing cost per liter for both products under ABC. (Round overhead cost per liter to 3 decimal places, e.g. Manufacturing cost per liter LINK TO TEXT LINK TO TEXT CoolDay LiteMist Question Atte Question 4 of 4 View Policies Show Attempt History Current Attempt in Progress 0.67/1 Windsor Corporation has one temporary difference at the end of 2021 that will reverse and cause taxable amounts of $57,500 in 2022, $62.100 in 2023, and $76.600 in 2024. Windsor's pretax financial income for 2021 is $414,600, and the tax rate is 30% for all years. There are no deferred taxes at the beginning of 2021 (a) Your answer is correct Compute taxable income and income taxes payable for 2021. Taxable income $ 218400 Income taxes payable $ 65520 eTextbook and Media List of Accounts (b) Your Answer Correct Answer Attempts: 1 of 2 used Your answer is correct. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) < Account Titles and Explanation Income Tax Expense Deferred Tax Liability Income Taxes Payable A Evidence LO4, PC....docx B Debit 124380 Evidence LO2, PC...docx Credit 58860 65520 Your Answer Correct Answer Your answer is correct Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts) (c) Account Titles and Explanation Income Tax Expense Deferred Tax Liability Income Taxes Payable eTextbook and Media Solution List of Accounts Debit Credit 124380 58660 65520 Attempts: 2 of 2 used Prepare the income tax expense section of the income statement for 2021, beginning with the line "Income before income taxes (Enter negative amounts using either a negative sign preceding the number eg-45 or parentheses eg (45)) Windsor Corporation Income Statement (Partial) Current eTextbook and Media List of Accounts Save for Later Last saved 6 seconds ago Attempts: 0 of 2 used Submit Arswer Question 3 of 4 View Policies Show Attempt History < > Current Attempt in Progress Your answer is partially correct. 0.7/1 Cheyenne SA began operations in 2022 and reported pretax financial income of 234,000 for the year. Cheyenne's tax depreciation exceeded its book depreciation by 32,000. Cheyenne's tax rate for 2022 and years thereafter is 30%. Assume this is the only difference between Cheyenne's pretax financial income and taxable income. Prepare the journal entry to record the income tax expense, deferred income taxes, and income taxes payable. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Income Tax Expense Debit 79800 Credit Deferred Tax Liability Income Taxes Payable 9600 70200 Show how the deferred tax liability will be classified on the December 31, 2022, statement of financial position. Deferred tax liability should be classified as a current liability on the December 31, 2022, statement of financial pos eTextbook and Media List of Accounts Save for Later Attempts: 1 of 2 used Submit