Dazzle, Inc. produces beads for jewelry making use. The following information summarizes production operations for June. The journal entry to record June production activities for direct material usage is:
Direct materials used $87,000
Direct labor used 160,000
Predetermined overhead rate (based on direct labor) 155%
Goods transferred to finished goods 432,000
Cost of goods sold 444,000
Credit sales 810,000
a. Debit Accounts Receivable $810,000; credit Cost of Goods Sold $810,000.
b. Debit Accounts Receivable $810,000; credit Sales $366,000; credit Finished Goods Inventory $444,000.
c. Debit Cost of Goods Sold $444,000; credit Sales $444,000.
d. Debit Finished Goods Inventory $444,000; debit Sales $810,000; credit Accounts Receivable $810,000; credit Cost of Goods Sold $444,000.
e. Debit Accounts Receivable $810,000; credit Sales $810,000; debit Cost of Goods Sold $444,000; credit Finished Goods Inventory $444,000.
Answer:
e. Debit Accounts Receivable $810,000; credit Sales $810,000; debit Cost of Goods Sold $444,000; credit Finished Goods Inventory $444,000.
Explanation:
During the sale for the period, the Cost of Sales of $444,000 has to be removed from the Finished Goods Inventory as :
Cost of Goods Sold $444,000 (debit)
Finished Goods Inventory $444,000 (credit)
At the Same time, the Sales Revenue and Accounts Receivable have to be recognized at $810,000 as
Accounts Receivable $810,000 (debit)
Sales Revenue $810,000 (credit)
The combined effect gives us option e : Debit Accounts Receivable $810,000; credit Sales $810,000; debit Cost of Goods Sold $444,000; credit Finished Goods Inventory $444,000.
The journal entry to record June production activities for direct material usage is Debit Accounts Receivable $810,000; credit Sales $810,000; debit Cost of Goods Sold $444,000; credit Finished Goods Inventory $444,000. Thus, the appropriate answer choice is option (e).
Merchandise refers to as finished goods and products that have been purchased and are prepared for sale.
During the sale for the period, the Cost of Sales of $444,000 has to be removed from the Finished Goods Inventory as :
Cost of Goods Sold $444,000 (debit)
Finished Goods Inventory $444,000 (credit)
At the Same time, the Sales Revenue and Accounts Receivable have to be recognized at $810,000 as:
Accounts Receivable $810,000 (debit)
Sales Revenue $810,000 (credit)
Therefore, the combined effect gives us option e.
To learn more on finished goods, here:
https://brainly.com/question/13829087
#SPJ6
The company estimates future uncollectible accounts. The company determines $14,000 of accounts receivable on January 31 are past due, and 30% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 5% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.) Record bad debts at the end of January.
Answer:
Bad debt expense = $4,690
Explanation:
Entry DEBIT CREDIT
Bad debt Expense $4,690
Allowance for doubtful debt $4,690
In Order to record bad debt expense, we need to go through some minor workings.
Workings
Receivables on January 31 past due = $14,000 x 30% = $4,200
Receivable not past due = ($14,000 x 70%) x5% = $490
Bad debt expense = Receivables on January 31 past due + Receivable not past due
Bad debt expense = $4,200 + $490
Bad debt expense = $4,690
A dry cleaner uses exponential smoothing to forecast equipment usage. The August forecast was 88% and the actual was 89.6%. Use a smoothing constant of 0.1.
A. Prepare a forecast for September.
B. Assuming actual September usuage of 92 %, prepare a forecast for October usage
Answer:
1. 88.16%
2. 88.54%
Explanation:
a. Prepare a forecast for September
Smoothing constant (a) is 0.1
Forecast for August (Ft) is 88%
Actual usage for August (At) is 89.6%
Forecast for September(Ft +1) will therefore be;
Using the formulae
= Ft+a (At-Ft)
= 88% + 0.1(89.6% - 88%)
= 88% + 0.16%
= 88.16%
b. Assuming actual September usage of 92% , prepare a forecast for October usage.
Since we have the following,
Smoothing constant(a) 0.1
Then forecast for September(Ft) is 88.16%
Also, actual usage for September (At) is 92%
Therefore, forecast for October (Ft + 1) will be,
Using the formula
= Ft+a(At - Ft)
= 88.16% + 0.1(92% - 88.16%)
= 88.16% + 0.384%
= 88.54%
Coyote Loco, Inc., a distributor of salsa, has the following historical collection pattern for its credit sales.
80 percent collected in the month of sale.
10 percent collected in the first month after sale.
5 percent collected in the second month after sale.
4 percent collected in the third month after sale.
1 percent uncollectible.
The sales on account have been budgeted for the last seven months as follows:
June $126,500
July 154,000
August 179,000
September 208,000
October 233,000
November 258,000
December 220,500
Required:
1. Compute the estimated total cash collections during October from credit sales.
2. Compute the estimated total cash collections during the fourth quarter from sales made on account during the fourth quarter.
Answer:
80 perent...
Explanation:
1. The estimated total cash collections during the month of October from credit sales are $222,310.
2. The estimated total cash collections during the fourth quarter of the year from sales made only on account during the fourth quarter are $835,870 ($166,400 + $207,200 + $240,100 + $222,170).
Data and Calculations:
Cash Collections from Credit Sales
June Jul Aug Sept Oct. Nov. Dec.
Credit Sales:
$126,500 $ 154,000 $179,000 $208,000 $233,000 $258,000 $220,500
Cash Collections:
80% $166,400 $186,400 $206,400 $176,400
10% 17,900 20,800 23,300 25,800
5% 7,700 8,950 10,400 11,650
4% 5,060 6,160 7,160 8,320
Total collections $222,310
June Jul Aug Sept Oct. Nov. Dec.
Credit Sales:
$126,500 $ 154,000 $179,000 $208,000 $233,000 $258,000 $220,500
Cash Collections:
80% $166,400 $186,400 $206,400 $176,400
10% 20,800 23,300 25,800
5% 10,400 11,650
4% 8,320
Total collections $166,400 $207,200 $240,100 $222,170
Thus, cash collections in October alone are $222,310 while for the fourth quarter based on fourth quarter credit sales only are $835,870.
Learn more: https://brainly.com/question/22850167
All of the following statements related to U.S. GAAP and IFRS are true except: Multiple Choice The closing process for merchandisers is the same under both systems. U.S. GAAP offers little guidance about the presentation order of expenses. Accounting for basic inventory transactions is the same under the two systems. Neither system requires separate disclosure of items when their size, nature, or frequency are important. Neither system defines operating income.Incorrect
Answer:
Neither system requires separate disclosure of items when their size, nature, or frequency are important.
Explanation:
IFRS is an acronym for International Financial Reporting Standards, it comprises of a set of accounting standards or rules issued by the International Accounting Standards Board (IASB). The International Financial Reporting Standards ensures that statement of income, when reported by accountants is consistent, transparent and comparable globally.
On the other hand, GAAP is an acronym for Generally Accepted Accounting Principles, it comprises of the accounting standard, procedures and principles used by public institutions in the United States of America. The U.S GAAP is issued by the Financial Accounting Standards Board (FASB) and adopted by the U.S. Securities and Exchange Commission (SEC).
Generally, there are some similarities in the operations of both governmental agencies and these are;
1. The closing process for merchandisers is the same under both systems.
2. U.S. GAAP offers little guidance about the presentation order of expenses.
3. Accounting for basic inventory transactions is the same under the two systems.
4. Neither system defines operating income.
However, the statement that neither system requires separate disclosure of items when their size, nature, or frequency are important is incorrect or false because all disclosure of items are presented together.
A company’s dividend policy refers to the manner in which a firm distributes its earnings to shareholders. Georia Industries Inc. recently paid a dividend to its shareholders. The following table offers a timeline of events surrounding the dividend.
Date Event
January 12 Declaration date
February 12 With-dividened date
February 13 Ex-dividened date
February 15 Holder-of-record date
March 24 Payment date
Based on this information:
1. The date on which investors are aware of the size and timing of a future dividend payment is_____.
2. The last day that an investor can buy a share of Sonaiya Development Group.'s stock and still be entitled to the dividend is_____.
3. The day when Sonaiya Development Group. will actually pay the dividend is If Victor buys 10 shares of Sonaiya Development Group. will actually pay the dividend is_____.
If Victor buys 10 shares of Sonaiya Development Group. stock from Susan, by what business date must Victor inform the company that he owns the shares so that he is eligible to receive the recently announced dividend payment?
A. March 24.
B. February 12.
C. February 15.
D. January 12.
Answer:
Dividend Policy at Georia Industries Inc.
1. The date on which investors are aware of the size and timing of a future dividend payment is_____. January 12 Declaration date
2. The last day that an investor can buy a share of Sonaiya Development Group.'s stock and still be entitled to the dividend is_____. February 12 With-dividend date
3. The day when Sonaiya Development Group. will actually pay the dividend is If Victor buys 10 shares of Sonaiya Development Group. will actually pay the dividend is_____. March 24 Payment date
If Victor buys 10 shares of Sonaiya Development Group. stock from Susan, by what business date must Victor inform the company that he owns the shares so that he is eligible to receive the recently announced dividend payment? February 12 With-dividend date
B. February 12.
Explanation:
The most important dates for dividends at Georia are the declaration date, The holder-of-record date, and the payment date. The declaration date is the date that the company's directors decide to announce that dividend will be paid to stockholders of record. The holder-of-record date is the date that a stockholders will know if he or she will receive dividend for that period, because only holders of record are paid dividends. If a stockholder's share is not registered before that date, then the stockholder is not entitled to dividends. The last date is, of course, the payment date. However, in accounting for the dividend transaction, only two dates are important: the declaration date and the payment date.
A jewelry firm buys semiprecious stones to make bracelets and rings. The supplier quotes a price of $8.90 per stone for quantities of 600 stones or more, $9.30 per stone for orders of 400 to 599 stones, and $9.80 per stone for lesser quantities. The jewelry firm operates 108 days per year. Usage rate is 26 stones per day, and ordering costs are $46.
a. If carrying costs are $2 per year for each stone, find the order quantity that will minimize total annual cost.
b. If annual carrying costs are 20 percent of unit cost, what is the optimal order size?
c. If lead time is 5 working days, at what point should the company reorder?
Answer:
MOST LIKELY it's B
Explanation:
if not I'm really sorry I tried
Johnson Enterprises uses a computer to handle its sales invoices. Lately, business has been so good that it takes an extra 3 hours per night, plus every third Saturday, to keep up with the volume of sales invoices. Management is considering updating its computer with a faster model that would eliminate all of the overtime processing.
Current Machine New Machine
Original purchase cost $14,900 $25,200
Accumulated depreciation $6,600 _
Estimated annual operating costs $24,600 $19,600
Remaining useful life 5 years 5 years
If sold now, the current machine would have a salvage value of $10,200. If operated for the remainder of its useful life, the current machine would have zero salvage value. The new machine is expected to have zero salvage value after 5 years. Prepare an incremental analysis to determine whether the current machine should be replaced.
Answer:
The old computer should be replaced since the differential amount of the replacing it with a new computer is $10,000
Explanation:
Old machine New machine Differential
amount
purchase cost $0 ($15,000) ($15,000)
operating costs year 1 ($24,600) ($19,600) $5,000
operating costs year 2 ($24,600) ($19,600) $5,000
operating costs year 3 ($24,600) ($19,600) $5,000
operating costs year 4 ($24,600) ($19,600) $5,000
operating costs year 5 ($24,600) ($19,600) $5,000
TOTAL ($123,000) ($113,000) $10,000
Suppose Nash received a lease incentive of $5,000 from Faldo Leasing to enter the lease. How would the initial measurement of the lease liability and right-of-use asset be affected
Answer:
The Lease liability will not be affected.
The $5,000 has to be included in the Right of Use Asset
Explanation:
Initial Measurement
Lease Liability : Measured as Present Value of Contract payments which incur from commencement date
Right of Use Asset : Measured at Amount Initially measured for Lease Liability add lease payments at and before commencement date
Thus,
The Lease liability will not be affected.
The $5,000 has to be included in the Right of Use Asset
On April 2, 2017, Montana Mining Co. pays $4,653,970 for an ore deposit containing 1,571,000 tons. The company installs machinery in the mine costing $231,600, with an estimated seven-year life and no salvage value. The machinery will be abandoned when the ore is completely mined. Montana begins mining on May 1, 2017, and mines and sells 154,100 tons of ore during the remaining eight months of 2017.
Required:
Prepare the December 31, 2017, entries to record both the ore deposit depletion and the mining machinery depreciation. Mining machinery depreciation should be in proportion to the mine's depletion.
Answer:
Date General Journal Debit Credit
Dec 31 Depletion expense (Mineral deposit) $456,510
($4,653,970 / 1,571,000 tons *154,100 tons )
Accumulated depletion—Mineral deposit $456,510
Dec 31 Depreciation expense—Machinery $22,718
($231,600 / 1,571,000 tons * 154,100 tons)
Accumulated depreciation—Machinery $22,718
the insured dies 6 months after the policy issue date upon death of the insured it is determined that the insured made a material misstatement on the application what is the most likely course of action for the insurer
Answer:
Rescind the policy
Explanation:
In this scenario the insuredad a misstatement on the application and dies after 6 months. To avoid any legal issues with the beneficiaries the best line of action of the insurer is to rescind the policy.
The reason for rescinding the policy should be stated as misstatement in the application.
Rescinded insurance policy will make it as if the agreement between the insurance company and policy makers was never made. Since the policy was not cancelled, the policy holder or his beneficiary will get back any premiums that have already been paid.
On the other hand if the policy were to be cancelled the only money returned to the policy holder will be the balance in the remaining portion of the term.
The primary objective of financial accounting is to: Multiple Choice Provide information on both the costs and benefits of looking after products and services. Monitor consumer needs, tastes, and price concerns. Provide accounting information that serves external users. Know what, when, and how much product to produce. Serve the decision-making needs of internal users.
Answer:
Provide accounting information that serves external users.
Explanation:
Financial accounting is can be defined as the field of accounting involving specific processes such as recording, summarizing, analysis and reporting of financial transactions with respect to business operations over a specific period of time. Financial experts or accountant uses either the cash basis or accrual basis of accounting.
The primary objective of financial accounting is to provide accounting information that serves external users.
In Accounting, the external users of a financial accounting information includes customers, creditors, investors shareholders and government regulators.
The information that are found in a financial statement are revenues, expenses, liability, equity and assets.
Hence, financial accounting is aimed at providing information to external users, who are outside an organization.
Because Toyota's investment eventually increases the level of R&D spending for his given level of sales revenue what would the effect on Toyota's return on invested capital (ROIC)?
Available Options Are:
a. Increasing ROIC by increasing return on sales
b. Decreasing ROIC by increasing return on sales
c. Decreasing ROIC by decreasing return on sales
d. Increasing ROIC by decreasing return on sales
Answer:
Option C. Decreasing ROIC by decreasing return on sales
Explanation:
The return on sales would be reduced as the research expenses have increased substantially. The implications of increased research expenses on the ROIC can be understood by analyzing the ROIC formula which is given as under:
ROCI = Operating Income (1 - Tax Rate) / Book Value of Invested Capital
As revenue expenditure (Research and Development expenses) of the company has increased, this would decrease the operating income of the company which means that the numenator would be decreased and as a result the ROCI would decrease.
The bonds of CYTK, Inc. carry a 12% annual coupon, have a $1,000 face value, and mature in 5 years. Bonds of equivalent risk yield 9%. What is the market value of CYTK bonds
Answer:
The market value of CYTK bonds is $1,116.69.
Explanation:
This can be calculated as follows:
Annual coupon = $1000 × 12% = $120
Annual coupon discount factor based ordinary annuity = ((1-(1/(1 + r))^n)/r)
Where;
r = rate of return of equivalent bond = 9%, or 0.09
n = number of years to maturity = 5
Therefore, we have
Annual coupon discount factor = ((1-(1/(1.09))^5)/0.09) = 3.88965126335172
PV of coupon = $120 × 3.88965126335172 = $466.76
PV of the face value of the bond = Face value ÷ (1 + r)^n = 1,000 ÷ (1 + 0.09)^5 = $649.93
Therefore, we have:
Market value of CYTK bonds = PV of coupon + PV of the face value of the bond = $466.76 + $649.93 = $1,116.69
Therefore, the market value of CYTK bonds is $1,116.69.
The smaller the required reserve ratio the larger the simple deposit multiplier. Do you agree or disagree with this statement. Explain your answer.
Answer:
Agree
Explanation:
A deposit multiplier is maximum amount of money that can be created for each unit of reserve. It is key requirement for maintaining economy's basic money supply. The simple deposit multiplier is 1 / rr * change in R. Deposit multiplier is the inverse of reserve ratio. The higher the reserve ratio the lesser will be the deposit multiplier. Reserve ratio is the minimum amount of money that must be kept in the deposit.
"How much would an investor expect to pay for a $1,000 par value bond with a 9% annual coupon that matures in 5 years if the interest rate is 5%
Answer:
The answer is $1,173.18
Explanation:
N(Number of periods) = 5 years
I/Y(Yield to maturity) = 5percent
PV(present value or market price) = ?
PMT( coupon payment) = $90 ( 9percent x $1,000)
FV( Future value or par value) = $1,000.
We are using a Financial calculator for this.
N= 5; I/Y = 5; PMT = 90; FV= $1,000; CPT PV= -1,173.18
Therefore, the market price of the bond is $1,173.18
Factory Overhead Cost Budget Budget that estimates the cost for each item of factory overhead needed to support budgeted production. Sweet Tooth Candy Company budgeted the following costs for anticipated production for August:
Advertising expenses $232,000
Manufacturing supplies 14,000
Power and light 48,000
Sales commissions 298,000
Factory insurance 30,000
Production supervisor wages 135,000
Production control wages 32,000
Executive officer salaries 310,000
Materials management wages 39,000
Factory depreciation 22,000
Prepare a factory overhead cost budget, separating variable and fixed costs. Assume that factory insurance and depreciation are the only fixed factory costs.
Variable Factory Overhead Cost - list out separately
Total variable factory overhead costs
Fixed factory overhead costs:
Total fixed factory overhead costs
Total factory overhead costs
Answer:
Factory Overhead Cost Budget
For the month ending August 31, 2016
Variable factory overhead costs:
Manufacturing supplies $14,000
Power and light $48,000
Production supervisor wages $135,000
Production control wages $32,000
Materials management wages $39,000
Total variable factory overhead costs $268,000
Fixed Factory Overhead Costs
Factory insurance $30,000
Factory depreciation $22,000
Total Fixed Factory Overhead Costs $52,000
Total factory overhead costs $320,000
Thus, the total factory overhead cost for the month of August, 2016 is $320,000.
During the first month of operations ended August 31, Kodiak Fridgeration Company manufactured 48,000 mini refrigerators, of which 44,000 were sold. Operating data for the month are summarized as follows:
1. Sales $8,800,000.00
2. Manufacturing costs:
3. Direct materials $3,360,000.00
4 Direct labor 1,344,000.00
5 Variable manufacturing cost 816,000.00
6 Fixed manufacturing cost 528,000.00 6,048,000.00
7 Selling and administrative expenses:
8 Variable $528,000.00
9 Fixed 352,000.00 880,000.00
Required:
Prepare an income statement based on the absorption costing concept.
Answer:
Income statement based on the absorption costing concept
Sales $8,800,000.00
Less Cost of Sales
Opening Stock $0
Add Cost of Goods Manufactured $6,048,000.00
Less Closing Stock ($504,000.00) ($5,544,000.00)
Gross Profit $3,256,000.00
Less Expenses :
Selling and administrative expenses:
Variable ($528,000.00 )
Fixed ($352,000.00)
Net Income / (Loss) $2,376,000
Explanation:
Absorption Costing Concept
Product Cost = All Manufacturing Cost (Fixed and Variable)
Period Cost (Expense) = All Non - Manufacturing Costs
Production Cost Schedule - To determine Cost of Goods Sold
Direct materials $3,360,000.00
Direct labor $1,344,000.00
Variable manufacturing cost $816,000.00
Fixed manufacturing cost $528,000.00
Total Manufacturing Cost $6,048,000.00
Closing Stock = 4,000 units × ($6,048,000.00/48,000)
= $504,000.00
A fund earned a net investment income (i.e. Ending Balance Starting Balance + Deposits/Withdrawals)) of 9200 during 1999. The beginning and ending balances of the fund were 100000 and 129200, respectively. A deposit was made at time K during the year. No other deposits or withdraws were made. The fund earned 8% in 1999 using the dollar-weighted method. Determine then date corresponding to time K
(a) April 1 (b) May 1 (c) July 1 (d) Sept. 1 (e) Oct. 1
Answer:________
Answer:
k = April 1 ( A )
Explanation:
Given data :
net investment income : $9200
Beginning balance = $100000
ending balance = $129200
deposit made
no withdrawals
interest earned = 8%
net investment ( $9200) = [ending balance - (starting balance + deposits/withdrawals )]
9200 = 129200 - 100000 - deposits
deposit = 129200 -100000 - 9200 = 20000
8% interest was earned on starting balance
= 8% of $100000 = $8000
interest earned on the deposit made = net income - interest earned on beginning balance = 9200 - 8000 = $1200
using the dollar-weighted method
assuming the deposit was made for Y months
interest earned on deposit = deposit * interest rate * (y/12)
1200 = 20000 * 8% * ( y /12 )
hence ( y/12) = 0.75 hence y = 9 months from December 31
which makes K = April 1
Periodic interest rates. You have a savings account in which you leave the funds for one year without adding to or withdrawing from the account. Which would you rather have: a daily compounded rate of 0.050%, a weekly compounded rate of 0.355%, a monthly compounded rate of 1.15%, a quarterly compounded rater of 4.25%, a semiannually compounded rate of 7.5%, or an annually compounded rate of 18%? What is the effective annual rate (EAR) of a daily compounded rate of 0.050%?
Answer:
Choose an annually compounded rate of 18%
The effective annual rate (EAR) of a daily compounded rate of 0.050% is 0.05001%.
Explanation:
We need to find the effective annual rate of interest for each nominal interest and compare this for the different alternatives.
The effective annual rate of interest is the annual rate that if compounded once a year would give us the same result as the same result as the interest per period compounded a number of times a year.
Conversion of Nominal to Effective Interest Rate.
1. A daily compounded rate of 0.050%
Use a financial calculator to enter the data
P/YR = 365
Nominal interest = 0.050%
Thus Effective Interest rate = ? 0.05001%
2. A weekly compounded rate of 0.355%
Use a financial calculator to enter the data
P/YR = 52
Nominal interest = 0.355%
Thus Effective Interest rate = ? 0.3556 %
3. A monthly compounded rate of 1.15%
Use a financial calculator to enter the data
P/YR = 12
Nominal interest = 1.15%
Thus Effective Interest rate = ? 1.1561%
4. A quarterly compounded rater of 4.25%
Use a financial calculator to enter the data
P/YR = 4
Nominal interest = 4.25%
Thus Effective Interest rate = ? 4,32%
5. A semiannually compounded rate of 7.5%
Use a financial calculator to enter the data
P/YR = 2
Nominal interest = 7.5%
Thus Effective Interest rate = ? 7.64%
6. an annually compounded rate of 18%
Use a financial calculator to enter the data
P/YR = 1
Nominal interest = 18%
Thus Effective Interest rate = ? 18%
Conclusion :
Choose the option giving the HIGHEST effective annual rate.
Thu, I would rather have an annually compounded rate of 18%.
Tempo Company's fixed budget (based on sales of 14,000 units) for the first quarter of calendar year 2017 reveals the following.
Fixed Budget
Sales (14,000 units) $3,024,000
Cost of goods sold
Direct materials $336,000
Direct labor 588,000
Production supplies 364,000
Plant manager salary 136,000 1,424,000
Gross profit 1,600,000
Selling expenses
Sales commissions 98,000
Packaging 224,000
Advertising 100,000 422,000
Administrative expenses
Administrative salaries 186,000
Depreciation—office equip. 156,000
Insurance 126,000
Office rent 136,000 604,000
Income from operations $574,000
Complete the following flexible budgets for sales volumes of 12,000, 14,000, and 16,000 units. (Round cost per unit to 2 decimal places.)
Quality Brick Company produces bricks in two processing departments—Molding and Firing. Information relating to the company’s operations in March follows:
a. Raw materials used in production: Molding Department, $28,600; and Firing Department, $5,800.
b. Direct labor costs incurred: Molding Department, $19,100; and Firing Department, $5,300.
c. Manufacturing overhead was applied: Molding Department, $25,200; and Firing Department, $35,400.
d. Unfired, molded bricks were transferred from the Molding Department to the Firing Department. According to the company’s process costing system, the cost of the unfired, molded bricks was $65,400.
e. Finished bricks were transferred from the Firing Department to the finished goods warehouse. According to the company’s process costing system, the cost of the finished bricks was $108,200.
f. Finished bricks were sold to customers. According to the company’s process costing system, the cost of the finished bricks sold was $104,900.
Required:
Prepare journal entries to record items (a) through (f) above. (If no entry is required for a transaction/event,
Answer:
a. Raw materials used in production: Molding Department, $28,600; and Firing Department, $5,800.
Dr Work in process: Molding department 28,600
Dr Work in process: Firing department 5,800
Cr Materials inventory 34,400
b. Direct labor costs incurred: Molding Department, $19,100; and Firing Department, $5,300.
Dr Work in process: Molding department 19,100
Dr Work in process: Firing department 5,300
Cr Wages payable 24,400
c. Manufacturing overhead was applied: Molding Department, $25,200; and Firing Department, $35,400.
Dr Work in process: Molding department 25,200
Dr Work in process: Firing department 35,400
Cr Manufacturing overhead 60,600
d. Unfired, molded bricks were transferred from the Molding Department to the Firing Department. According to the company’s process costing system, the cost of the unfired, molded bricks was $65,400.
Dr Work in process: Firing department 65,400
Cr Work in process: Molding department 65,400
e. Finished bricks were transferred from the Firing Department to the finished goods warehouse. According to the company’s process costing system, the cost of the finished bricks was $108,200.
Dr Finished goods inventory 108,200
Cr Work in process: Firing department 108,200
f. Finished bricks were sold to customers. According to the company’s process costing system, the cost of the finished bricks sold was $104,900.
Dr Cost of goods sold 104,900
Cr Finished goods inventory 104,900
The following transactions relate to the General Fund of the City of Buffalo Falls for the year ended December 31, 2017: Beginning balances were: Cash, $93,000; Taxes Receivable, $189,500; Accounts Payable, $52,250; and Fund Balance, $230,250. The budget was passed. Estimated revenues amounted to $1,230,000 and appropriations totaled $1,227,400. All expenditures are
Answer:
Estimated Revenue Control (Dr.) $1,230,000
Appropriation (Cr.) $1,227,400
Budgetary Fund (Cr.) $2,600
Tax receivable (Dr.) $189,500
Revenue (Cr.) $189,500
Cash (Dr.) $93,000
Tax receivable (Dr.) $96,500
Revenue (Cr.) $189,500
Expenditure Control (Dr.) $52,250
Accounts Payable (Cr.) $52,250
Accounts Payable (Dr.) $52,250
Cash (Cr.) $52,250
Explanation:
Buffalo Falls earned and received tax revenue of $189,500. This will be reflected on debit side when journal entry is made and revenue is credited as per transaction. The company has now recorded a transaction of expenditure control of $52,250. These transaction are recorded by debiting the expenditure control account and crediting the accounts payable.
Muriel is giving a speech to the community's business leaders. She begins by stating, "Our community has been strong in the face of adversity, but we now face the most serious challenge in years. The tax base is shrinking and will be 30 percent smaller in three years." What is she doing
Answer:
Setting the mood and tone of her speech.
Explanation:
Muriel's approach to her speech prepares the mind of her listeners who are made up of business leaders who are known to usually have negative views about increasing taxes.
Thus, Muriel may be able to reach the emotions of her listeners towards accepting her point of view. This is evident by the the statement "Our community has been strong in the face of adversity, but we now face the most serious challenge in years", in which it likens the decreasing tax revenues to an adversity that should be overcomed; thus employing more support.
Statfeld Company's income statement for the current month shows that the company sold 300,000 units of its product and earned a net operating income of $450,000, Management is very pleased with the result and believes the company's financial position is strong because sales would have to go down by 40% from the current level before losses would occur. Management further believes that if the company runs a new TV commercial at a cost of $50,000 per month, sales volume next month could grow by 20% from the current sales level without the need to lower the sales price. If this action is taken, what will be the increase decrease in the next month's net operating income from the current month?
a. Increase of $175,000
b. Increase of $40,000
c. Increase of $225,000
d. Decrease by $50,000
e. None of the above.
Answer:
b. Increase of $40,000
Explanation:
Incremental Analysis of the Operating Profit arising from new TV commercial
Hint : Consider Incremental amounts Only
Operating Income ( $450,000 × 20 %) $90,000
Less Cost of new TV commercial ($50,000)
Incremental Income / (loss) $40,000
Conclusion :
There will be an increase in next month's net operating income from the current month of $40,000 .
Percy Corporation was formed on January 1. The corporate charter authorized 100,000 shares of $10 par value common stock. During the first month of operation, the corporation issued 400 shares to its attorneys in payment of a $5,000 charge for drawing up the articles of incorporation. The entry to record this transaction would include: g
Answer= The entry to record this transaction would include:
A debit to Organization Expenses for $5,000.
A credit to common stock for $4,000 and Paid in capital in excess of par-Common Stock of $1,000
Explanation:
Common stock = 400 x $10= $4000
Accounts Debit Credit
Organisation expense $5,000
Common stock $4,000
Paid in capital in excess of par value
of common stock $1,000
( $5000 - $4000)
a. Equipment with a book value of $79500 and an original cost of $169000 was sold at a loss of $33000.
b. Paid $106000 cash for a new truck.
c. Sold land costing $310000 for $420000 cash yielding a gainof $11000.
d. Long term investments in stock were sold for $95600 cash yielding a gain of $17000.
Required:
Use the above information to determine this company's cash flows from investing activities.
Answer:
Cash flow from Investing activities refers to cash transactions related to Fixed Assets as well as transactions related to the ownership of other company securities.
Cash-flow from Investing Activities
Sale of equipment (79,500 - 33,000).......................... $46,500
Purchase of New Truck ................................................... ($106,000)
Sale of Land.........................................................................$420,000
Sale of Long-term investments.......................................$95,600
Net cash provided by investing activities ...................$456,100
Moody Corporation uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates:
Machine-hours required to support estimated production 155,000
Fixed manufacturing overhead cost $ 653,000
Variable manufacturing overhead cost per machine-hour $ 4.70
Required:
1. Compute the plantwide predetermined overhead rate.
2. During the year, Job 400 was started and completed. The following information was available with respect to this job:
Direct materials $ 390
Direct labor cost $ 220
Machine-hours used 37
Compute the total manufacturing cost assigned to Job 400.
3. If Job 400 includes 60 units, what is the unit product cost for this job?
4. If Moody uses a markup percentage of 120% of its total manufacturing cost, then what selling price per unit would it have established for Job 400?
find- Predetermined overhead rate =
A. total manufacturing cost=
B. If Job 400 includes 60 units, what is the unit product cost for this job?
C. If Moody uses a markup percentage of 120% of its total manufacturing cost, then what selling price per unit would it have established for Job 400?
Answer:
Instructions are below.
Explanation:
Giving the following information:
Machine-hours required to support estimated production 155,000
Fixed manufacturing overhead cost $ 653,000
Variable manufacturing overhead cost per machine-hour $ 4.70
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (653,000/155,000) + 4.7
Predetermined manufacturing overhead rate= $8.91 per machine hour
Job 400:
Direct materials $ 390
Direct labor cost $ 220
Machine-hours used 37
Total cost= 390 + 220 + 37*8.91
Total cost= $939.67
Unitary cost= 939.67/60= $15.62
Finally, the selling price for Job 400:
Selling price per unit= 15.62*1.2= $18.74
Veronica Mars, a recent graduate of Bell’s accounting program, evaluated the operating performance of Dunn Company’s six divisions. Veronica made the following presentation to Dunn’s board of directors and suggested the Percy Division be eliminated. "If the Percy Division is eliminated," she said, "our total profits would increase by $26,500." The Other Five Divisions Percy Division Total Sales $1,663,000 $100,000 $1,763,000 Cost of goods sold 978,100 76,800 1,054,900 Gross profit 684,900 23,200 708,100 Operating expenses 529,000 49,700 578,700 Net income $155,900 $ (26,500 ) $129,400 In the Percy Division, cost of goods sold is $60,500 variable and $16,300 fixed, and operating expenses are $29,100 variable and $20,600 fixed. None of the Percy Division’s fixed costs will be eliminated if the division is discontinued. Is Veronica right about eliminating the Percy Division? Prepare a schedule to support your answer.
Ann Chovies, owner of the Perfect Pasta Pizza Parlor, uses 20 pounds of pepperoni each day in preparing pizzas. Order costs for pepperoni are $10.00 per order, and carrying costs are $0.04 per pound per day. Lead time for each order is 3 days, and the pepperoni itself costs $3.00 per pound. If she were to order 80 pounds of pepperoni at a time, what would be the average invent
Answer:
40 pounds would be the average inventory
Explanation:
Total Order quantity= 80 pounds
Average inventory level = Order quantity / 2
= 80 pounds / 2
= 40 pounds
Hence, 40 pounds would be the average inventory