The following are transactions that occurred in September 2021, the first month the business was established. Assuming all transactions are in cash, except for other notes. 1. Ms. Minh Ha started a business, set up MIT Company, contributed her capital into the company $ 5,000.
2. MIT has borrowed from Technical Development Bank (TDB) $ 3,000 on Sep 1, 2021, with interest rate of 12%/year, principals will be one-time repayment on Sep 1, 2022 since interest must paid in cash monthly.
3. Total sales revenue of services in 9/2021 is $ 1,500, of which 30% is owed by customers; The total costs is $ 1,200, of which MIT owes the supplier 25%. Corporate income tax will be paid monthly by tax rate of 20%.
4. The net profit/income for the month is divided to the owner $ 100.

Required:
Prepare the basic financial statements for September 2021: Q2.1. Income statement to 30/9/2021 (IS).
Q2.2. Balance sheet at 30/9/2021 (BS)1.
Q2.3. Cash flow statement (CFS), by direct method.
Q2.4. Cash flow from operating activity, by indirect method.

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?