Author: admin

C corporations may distribute money or property to shareholders. The method used to make a corporate distribution will determine the tax consequences of the withdrawal. Generally, non-liquidating distributions (those that don’t dissolve the business) will take the form of dividends or a nontaxable return of capital to the shareholders. Of course, a corporation can distribute […]

In the Comprehensive Drug Abuse Prevention and Control Act of 1970, 21 U.S.C. §801–971 (1970), (“Controlled Substances Act” or “CSA”), Congress created a regime to curtail the unlawful manufacture, distribution, and abuse of dangerous drugs (“controlled substances”). Congress assigned each controlled substance to one of five lists (Schedule I through Schedule V). See §812 of […]

Allocating direct costs to production is pretty straightforward — you know what the materials and direct labor costs. The hard part is determining the amount of overhead to allocate to finished goods inventory. Overhead expenses are those indirect costs, like staffing the front office, paying for office supplies, the cost of the employee Christmas party […]

Calculating finished goods inventory for a business that sells products it manufactures is an important part of preparing financial statements. The key to calculating the value of this asset category accurately is ensuring that all of the relevant costs associated with producing each item are included. The expenses should be expressed on a per unit […]

Under Generally Accepted Accounting Principles, or GAAP, manufacturing overhead must be allocated to each item produced. Manufacturing overhead is the expenses associated with the manufacture of products that can’t be immediately assigned to a particular item, such as the cost of raw materials. Items in this category can include electricity to light the plant and […]