Answer:
7,640 units
Explanation:
Calculation for what the equivalent units produced by the department were Using the weighted average method
First step is to calculate the units Completed & transferred out
Completed & transferred out =6,100+1,230
Completed & transferred out=7,330
Second step is to calculate the EGIP
EGIP= (1,240*25%)
EGIP=310
Now let calculate the equivalent units produced by the department
Equivalent units produced=7,330+310
Equivalent units produced=7,640 units
Therefore Using the weighted average method, the equivalent units produced by the department were:7,640 units
Port Ormond Carpet Company manufactures carpets. Fiber is placed in process in the Spinning Department, where it is spun into yarn. The output of the Spinning Department is transferred to the Tufting Department, where carpet backing is added at the beginning of the process and the process is completed. On January 1, Port Ormond Carpet Company had the following inventories:
Finished Goods..................................... $62,000
Work in Process-Spinning Department.........35,000
Work in Process-Tufting Department............28,500
Materials............................................... 17,000
Departmental accounts are maintained for factory overhead, and both have zero balances on January 1. Manufacturing operations for January are summarized as follows:
A. Materials purchased on account . . . . . . . . . . . . . . . .$500,000
B. Materials requisitioned for use:
Fiber—Spinning Department . . . . . . . . . . . . . . . . . . . . . $275,000
Carpet backing—Tufting Department . . . . . . . . . . . . . . . .110,000
Indirect materials—Spinning Departme . . . . . . . . . . . . . . . 46,000
Indirect materials—Tufting Departme. . . . . . . . . . . . . . . . . 39,500
C. Labor used:
Direct labor—Spinning Department . . . . . . . . . . . . . . . . $185,000
Direct labor—Tufting Department. . . . . . . . . . . . . . . . . . . . 98,000
Indirect labor—Spinning Department .. . . . . . . . . . . . . . . . 18,500
Indirect labor—Tufting Department . . . . . . . . . . . . . . . . . . . 9,000
D. Depreciation charged on fixed assets:
Spinning Department . . . . . . . . . . . . . .. . . . . . . . . . . . . . $12,500
Tufting Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,500
E. Expired prepaid factory insurance
Spinning Department . . . . . . . . . .. . . . . . . . . . . . . . . . . . . $2,000
Tufting Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,000
F. Applied factory overhead:
Spinning Department . . . . . . . . . . . . . . . . . . . . . . . . . . . .$80,000
Tufting Department . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55,000
G. Production costs transferred from Spinning Department to Tufting Department .
$547,000
H. Production costs transferred from Tufting Department to Finished Goods .
$807,200
I. Cost of goods sold during the period . . . . . . . . . . . . . . .$795,200
Instructions
1. Journalize the entries to record the operations, identifying each entry by letter.
2. Compute the January 31 balances of the inventory accounts.
3. Compute the January 31 balances of the factory overhead accounts.
Answer:
1. Journal Entries:
A. Debit Materials $500,000
Credit Accounts payable $500,000
To record the purchase of materials on account.
B. Debit Work-in-Process - Spinning $275,000
Credit Materials $275,000
To record the materials requisitioned.
B. Debit Work-in-Process -Tufting $110,000
Credit Materials $110,000
To record carpet backing
B. Debit Overhead - Spinning $46,000
Debit Overhead - Tufting $39,500
Credit Materials $85,500
To record indirect materials used.
C. Debit Work-in-Process - Spinning $185,000
Debit Work-in-Process - Tufting $98,000
Credit Factory labor $283,000
To record direct labor costs.
C. Debit Overhead - Spinning $18,500
Debit Overhead - Tufting $9,000
Credit Factory labor $27,500
To record indirect labor costs.
D. Debit Overhead - Spinning $12,500
Debit Overhead - Tufting $8,500
Credit Factory Depreciation $21,000
To record depreciation costs.
E. Debit Overhead - Spinning $2,000
Debit Overhead - Tufting $1,000
Credit Factory Insurance $3,000
To record insurance costs.
F. Debit Work-in-Process - Spinning $80,000
Debit Work-in-Process - Tufting $55,000
Credit Factory Overhead $135,000
To record overhead costs applied.
G. Debit Work-in-Process - Tufting $547,000
Credit Work-in-Process - Spinning $547,000
To record the transfer to Tufting department.
H. Debit Finished Goods Inventory $807,200
Credit Work-in-Process- Tufting $807,200
To record the transfer to Finished Goods.
I. Debit Cost of Goods Sold $795,200
Credit Finished Goods $795,200
To record the cost of goods sold.
2. January 31 balances of the inventory accounts:
Finished Goods = $74,000
Work-in-Process - Spinning = $28,000
Work-in-Process - Tufting = $32,300
Materials = $46,500
3. Factory Overhead Accounts:
Overhead - Spinning:
B. Materials (Indirect) 46,000
C. Indirect labor 18,500
D. Depreciation exp. 12,500
E. Factory insurance 2,000
F. Applied overhead 80,000
Overapplied overhead 1,000
Overhead - Tufting:
B. Materials (Indirect) 39,500
C. Indirect labor 9,000
D. Depreciation exp. 8,500
E. Insurance expense 1,000
F. Applied overhead 55,000
Underapplied overhead 3,000
Explanation:
a) Data and Calculations:
January 1 Inventories:
Finished Goods = $62,000
Work in Process- Spinning = $35,000
Work in Process - Tufting = $28,500
Materials = $17,000
Finished Goods
Account Titles Debit Credit
Beginning balance $62,000
Work-in-Process-Tufting 807,200
Cost of Goods Sold $795,200
Ending balance 74,000
Work-in-Process - Spinning
Account Titles Debit Credit
Beginning balance $35,000
B. Materials 275,000
C. Direct labor 185,000
F. Applied overhead 80,000
G. Work-in-Process -Tufting $547,000
Ending balance 28,000
Work-in-Process - Tufting
Account Titles Debit Credit
Beginning balance $28,500
B. Carpet backing 110,000
C. Direct labor 98,000
E. Insurance expense 1,000
F. Applied overhead 55,000
G. WIP- Spinning 547,000
H. Finished Goods $807,200
Ending balance 32,300
Cost of Goods Sold
I. Finished Goods $795,200
Materials
Account Titles Debit Credit
Beginning balance $17,000
A. Accounts receivable 500,000
B. Work-in-Process - Spinning $275,000
B. Work-in-Process - Spinning 46,000
B. Work-in-Process - Tufting 39,500
B. Work-in-Process - Tufting 110,000
Ending balance 46,500
slove for x
11x+3=3x+35
Answer:
x = 4
Explanation:
1. 11x + 3 = 3x+ 35
2. -3x -3 -3x -3
----------------------------
3. 8x = 32
divide 8 from both sides of the equal sign
4. x = 4
Hope that helps
Answer:
11x-3x=35-3
8x=32
x=32:8
After the accounts have been adjusted at April 30, the end of the fiscal year, the following balances were taken from the ledger of Nuclear Landscaping Co.:________.
Felix Godwin, Capital $643,600
Felix Godwin, Drawing 10,500
Fees Earned 356,500
Wages Expense 283,100
Rent Expense 56,000
Supplies Expense 11,500
Miscellaneous Expense 13,000
Journalize the two entries required to close the accounts.
Answer:
April 30
Dr Fees earned 356,500
Cr Income summary356,500
April 30
Dr Income summary 363,600
Cr Wages expense 283,100
Cr Rent expense 56,000
Cr Supplies expense 11,500
Cr Miscellaneous expense 13,000
April 30
Dr Felix Goodwin, capital 7,100
Cr Income summary 7,100
April 3.0
Dr Felix Goodwin, capital 10,500
Cr Felix Goodwin, drawing 10,500
Explanation:
Preparation of the journal entry for the two entries required to close the accounts.
April 30
Dr Fees earned 356,500
Cr Income summary356,500
April 30
Dr Income summary 363,600
(283,100+56,000+11,500+13,000)
Cr Wages expense 283,100
Cr Rent expense 56,000
Cr Supplies expense 11,500
Cr Miscellaneous expense 13,000
April 30
Dr Felix Goodwin, capital 7,100
Cr Income summary 7,100
(363,600-356,500)
April 3.0
Dr Felix Goodwin, capital 10,500
Cr Felix Goodwin, drawing 10,500
Duce, Inc. produces two different products (Product A and Product X) using two different activities: Machining, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. The activity rate for Machining is $125 per machine hour, and the activity rate for Inspection is $500 per batch. The activity drivers are used as follows:
Product A Product X Total
Machine hours 1,900 3,900 5,800
Number of batches 45 22 67
What is the amount of Machining cost assigned to Product X?
a. $780,000
b. $22,500
c. $380,000
d. $950,000
Answer:
Machinning= $487,500
Explanation:
Giving the following information:
The activity rate for Machining is $125 per machine hour.
Product A Product X Total
Machine hours 1,900 3,900 5,800
To assign costs to Product X, we need to use the following formula:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Machinning= 125*3,900
Machinning= $487,500
Consider the following transactions.
1. Receive cash from customers, $15,000.
2. Pay cash for employee salaries, $9,000.
3. Pay cash for rent, $3,000.
4. Receive cash from sale of equipment, $8,000.
5. Pay cash for utilities, $1,000.
6. Receive cash from a bank loan, $4,000.
7. Pay cash for advertising, $7,000.
8. Purchase supplies on account, $3,000.
Required: Post transactions to the Cash T-account and calculate the ending balance. The beginning balance in the Cash T-accow1t is $5,000.
Answer:
Cash accountTransaction Debit Credit
Big. bal. 5,000
1. 15,000
2. 9,000
3. 3,000
4. 8,000
5. 1,000
6. 4,000
7. 7,000
8. NO ENTRY
Ending bal. 12,000
Transaction number 8 is not included since an accounts payable is created, there is no cash outflow.
Explanation:
You are the creative director at a Milwaukee ad agency. Today, your copywriters are presenting you with their ideas for several 30-second radio spots for the City of Milwaukee Tourism Bureau, which wants to feature its own information center and tours, as well as city museums, art galleries, concerts, festivals, and special events. When they are ready, the best ideas will be taken to the marketing director at the City of Milwaukee for review and approval.(Scenario ) One copywriter shows you an idea that involves an announcer reading a "top ten" list of cool reasons to visit Milwaukee. What basic guidelines of radio copywriting does this technique address?a. Repeat the brand name.b. Stress the main selling points.c. Stimulate the imagination.d. Tailor copy to a time, place, and audience.
Answer:
City of Milwaukee Tourism Bureau
The basic guideline of radio copywriting that this technique addresses is:
b. Stress the main selling points.
Explanation:
Exploiting the city's selling points and communicating the benefits derivable from touring the city's museums, art galleries, concerts, festivals, and special events are the top guidelines for radio copywriting. Other guidelines will include focusing on the "you" and not "we," not providing too much information, and including a call for action.
Indirect labor includes:______.
1. labor of employees working directly on the product.
2. labor of the maintenance employees.
3. labor of the clerical staff.
Answer:
2, 3
Explanation:
Indirect labour includes labour not included in the production process of a good or service. They are involved in the running of the business instead
They include
Accountants
Lawyers
Administrative staffs
Maintenance employees
Direct labour includes labor of employees working directly on the product.
Which of the following best describes what investment is?
A required payment to owners of a company
An amount of money to pay for larger operations
A new company with several shareholders
A renewable technology in a developing country
During the summer you have made the decision to attend summer school, which precludes you from working at your usual summer job in which you normally earn $6,000 for the summer. Your tuition cost is $3,000, books and supplies cost $300, and room and board cost $1,000. The opportunity cost of attending summer school is....
Answer:
the opportunity cost of attending summer school is $10,300
Explanation:
The computation of the opportunity cost of attending summer school is shown below:
= Earnings for the summer + tuition cost + books and supplies cost + room and board cost
= $6,000 + $3,000 + $300 + $1,000
= $10,300
hence, the opportunity cost of attending summer school is $10,300
Transactions for Sunland Company for the month of June are presented below.
June
1 Issues common stock to investors in exchange for $4,080 cash.
2 Buys equipment on account for $1,720.
3 Pays $910 to landlord for June rent.
12 Bills Wil Wheaton $800 for welding work done.
Journalize the transactions. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)
Answer:
Date Account Detail Debit Credit
June 1 Cash $4,080
Common Stock $4,080
Date Account Detail Debit Credit
June 2 Equipment $1,720
Accounts Payable $1,720
Date Account Detail Debit Credit
June 3 Rental expense $910
Cash $910
Date Account Detail Debit Credit
June 12 Accounts Receivable $800
Welding Revenue $800
Because there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most balanced picture of how prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer price index (CPI) and the GDP deflator.
The GDP deflator for this year is calculated by dividing the___using_____by the____using_____and multiplying by 100. However, the CPI reflects only the prices of all goods and services______. Indicate whether each scenario will affect the GDP deflator or the CPI for the United States.
Shows up in the... GDP
Scenario Deflator CPI
A decrease in the price of a Treewood Equipment feller
buncher, which is a commercial forestry machine made
in the U.S. but not bought by U.S. consumers.
An increase in the price of a Japanese-made television
that is popular among U.S. consumers.
Answer:
GDP deflator for this year is calculated by dividing the value of all goods and services produced in the economy using this year's prices by the value of all goods and services produced in the economy using the base year's prices. However, the CPI reflects only the prices of all goods and services bought by the consumers.
1. Scenario: A decrease in the price of a Treewood Equipment feller buncher, which is a commercial forestry machine made in the U.S. but not bought by U.S. consumers
Shows up: In the GDP Deflator not CPI
2. Scenario: An increase in the price of a Japanese-made television that is popular among U.S. consumers.
Shows up: In the CPI not GDP Deflator
Skysong Corporation reported the following for 2020: net sales $1,236,500, cost of goods sold $732,900, selling and administrative expenses $331,400, and an unrealized holding gain on available-for-sale debt securities $24,400.Prepare a statement of comprehensive income using the one statement format. (Ignore income taxes and earnings per share.)Prepare a statement of comprehensive income, using the two statement format. (Ignore income taxes and earnings per share.)
Answer:
A. $196,600
B. $196,600
Explanation:
A. Preparation of a statement of comprehensive income using the one statement format.
SKYSONG CORPORATION Statement of Comprehensive Income For the Year Ended
Sales revenue $1,236,500
Less Cost of goods sold ($732,900)
Gross profit $503,600
($1,236,500-$732,900)
Selling and administrative expenses $331,400
Net income $172,200
($503,600-$331,400)
Add Unrealized holding gain, net of tax $24,400
Comprehensive income $196,600
($172,200+$24,400)
Therefore the statement of comprehensive income using the one statement format will be $196,600
(b) Preparation of a statement of comprehensive income using the two statement format
SKYSONG CORPORATION Income Statement and Comprehensive Income Statement For the Year Ended
Sales $1,236,500
Cost of goods sold ($732,900)
Gross profit $503,600
($1,236,500-$732,900)
Selling and administrative expenses $331,400
Net income $172,200
($503,600-$331,400)
COMPREHENSIVE INCOME
Net income $172,200
Unrealized holding gain $24,400
Comprehensive income $196,600
($172,200+$24,400)
Therefore the statement of comprehensive income using the two statement format will be $196,600
The Winston Company estimates that the factory overhead for the following year will be $868,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 28,000 hours. The total machine hours for the year were 54,800 hours. The actual factory overhead for the year was $1,723,00.
Required:
a. Determine the total factory overhead amount applied.
b. Calculate the overapplied or underapplied amount for the year.
c. Prepare the journal entry to close Factory Overhead into Cost of Goods Sold.
Answer:
I just learn Logic Of ABi Nandan...Then after That I understand every thing...
Countries' real GDP per capita growth rates differ largely due to disparities in the rates at which they accumulate ____________ , as well as the rate of _________. In many countries, growth has been achieved through high rates _________ and________ spending.
Answer:
Human and physical capital; technological change; savings; investment.
Explanation:
The Gross Domestic Products (GDP) is the measure of the total market value of all finished goods and services made within a country during a specific period.
Simply stated, GDP is a measure of the total income of all individuals in an economy and the total expenses incurred on the economy's output of goods and services in a particular country. The Gross Domestic Products (GDP) of a country's economy gives an insight to it's social well-being, these includes;
I. Real Gross Domestic Product should be adjusted for any price level change using a price index. This simply means, it is adjusted for inflation to measure the value of goods and services produced by a country in a specific period of time.
Mathematically, [tex]{Real \; GDP} = \frac{Nominal \; GDP}{GDP \; deflator}[/tex]
Countries' real GDP per capita growth rates differ largely due to disparities in the rates at which they accumulate human and physical capital, as well as the rate of technological change. In many countries, growth has been achieved through high rates savings and investment spending.
Hence, an inflationary gap, also known as the expansionary gap in economics is used to measure the difference between the gross domestic product (GDP) and the current level of Real Gross Domestic Products that exists when a country's economy is gauged at a full employment rate.
Which of the statements is the best description of a business cycle? the relationship between the returns on Treasury securities and the time to maturity the time it takes a firm to convert raw materials into a final good or service alternating periods of increasing and decreasing economic output a calendar year divided into four quarters, each containing three months
Answer:
alternating periods of increasing and decreasing economic output
Explanation:
The business cycle represent the boom and recession period. At the time of boom, the company earned huge profits while at the time of recession period this situation would be reverse that leads to rise and reduction in the economic output
Therefore according to the options given, the last second option is correct as it denotes the business cycle
Franklin, Inc uses activity-based costing. The company produces X and Y. Information relating to the two products is as follows:
X Y
Units produced 38,000 50,000
Machine-hours 15,000 17,000
Direct labor-hours 16,000 24,000
Materials handling (number of moves) 8,000 12,000
Setups 10,000 14,000
The following costs are reported:
Materials handling $160,000
Labor-related overhead 480,000
Setups 240,000
Labor-related overhead costs assigned to product X are:________
A. $192,000
B. $232,000
C. $288,000
D. $272,500
Answer:
A. $192,000
Explanation:
The computation of the labor related overhead cost is shown below:
= (Labor related overhead cost) ÷ (Total direct labor hours) × direct labor hours of X
= ($480,000) ÷ (16,000 hours + 24,000 hours) × 16,000 hours
= $192,000
hence, the correct option is A.
The Commerce Ministry of a country conducts regular surveys on goods and services sold within the country. Researchers at the Ministry study consumer behavior through the choices the consumers make while deciding what to buy. Their report on the industry for beverages last year indicated that the price elasticity of demand for fruit juices in the country was? -0.8, while the price elasticity of demand for a particular brand called Fruit Drops was? -1.2. According to the? report, an average consumer spends about 1 percent of his monthly income on fruit juices. A student of? economics, Julio, however feels that the current price elasticity of demand for Fruit Drops is actually higher than? -1.2, based on his own experience in purchasing fruit juices.??More recent reports on consumer behavior in this market indicate that the price elasticity of demand for fruit juices in general is actually higher than? -0.8. Which of the? following, if? true, would support this? claim?A. The number of fruit juice manufacturers has increased substantially in recent years.B. More and more people are choosing to consume fruit juices instead of health drinks because of the extremely high caffeine content in the latter.C. Government has stopped the subsidy it used to provide to producers of fruit juices.D. Market research suggests that as income? increases, people are reducing their consumption of Fruit Drops and moving to other brands.E. Health experts are encouraging people to consume fruits instead of fruit juices because the latter contain harmful preservatives.
Answer:
Explanation:
The number of fruit juice manufacturers has increased substantially in recent years.
On March 25, 2021, Phillips Corporation purchased bonds of Atlas Corporation for $132 million and classified the securities as trading securities. On December 31, 2021, these bonds were valued at $150 million. Three months later, on April 3, 2022, Phillips Corporation sold these bonds for $140 million. As part of the multi-step approach to record the 2019 transaction, Phillips Corporation should first update the fair value adjustment by recording:A. An unrealized holding gain of $28 million in 2019.B. A unrealized holding loss of $10 million in 2019.C. An unrealized holding gain of $8 million in 2019.D. A gain of $8 million in 2019.
Answer:
B. A unrealized holding loss of $10 million in 2022.
Explanation:
By December 31, 2021, the bonds were worth $150 million, resulting in an $18 million unrealized gain. By the time the bonds were sold, their price had deceased to $140 million, which means that $10 million of the $18 million previous gain had been erased. Therefore, the adjusting entry on December 31, 2022, should include the $10 million unrealized loss.
In the midst of closing procedures, Echo Corporation's accountant became ill and was hospitalized. You have volunteered to complete the closing of the books, and you find that all revenue and expense accounts have zero balances. The Dividends account has a debit balance of $18,750. The Retained Earnings accounts has a beginning credit balance of $134,000. Expenses totaled $325,500 and revenues totaled $364,400.
Prepare journal entries to complete the closing procedures as of year-end. To close the Dividends account.
Answer:
Revenues Dr $364,400
Income summary Cr $364,400
(Closing revenue accounts)
Income summary Dr $325,500
Expenses Cr $325,500
(Closing expense accounts)
Income summary Dr $38900
Retained earnings Cr $38900
(Transferring balance in income summary to retained earnings)
Dividends Dr $18,750
Retained earnings Cr $18,750
(Closing of dividends)
Jackson, Inc., manufactures two products that it sells to the same market. Excerpted below are its budgeted and actual operating results for the year just completed: Unit sales Budged Actual Product X 22,500 42,000 Product Y 90,000 80,000 Unit contribution margin Product X $4.80 $3.90 Product Y $13.00 $14.00 Unit selling price Product X $13.00 $14.00 Product Y $30.00 $29.00 Industry volume was estimated to be 1,875,000 units at the time the budget was prepared. Actual industry volume for the period was 2,440,000 units. Jackson measures variances using contribution margin. Total sales quantity variance is: $97,280 favorable. $95,190 favorable. $107,920 favorable. $84,500 favorable. $36,400 favorable.
Answer:
$46,500 unfavorable
Explanation:
The computation of the total sales quantity variance is as follows:
Total sales quantity variance
Sales quantity variance is
= (Actual quantity sold - Budgeted quantity) × Budgeted price
For product X, it would be
= (42,000 - 22,500) × $13
= $253,500 favorable
And, For product Y, it is
= (80,000 - 90,000) × $30
= $300,000 unfavorable
So, the total would be
= $300,000 - $253,500
= $46,500 unfavorable
This is the answer but the same would not be provided in the given options
Friends Appliance uses a perpetual inventory system. The following are three recent merchandising transactions: May 10 Purchased 10 televisions from Sony Center on account. Invoice price, 30,000 per unit. The terms of purchase were 2/10, n/30. May 15 Sold one of these televisions for 35,000 cash. May 18 Sold Two of these television for 37,000 on Account. The credit term is 2/10, n/30. May 20 Paid the account payable to Sony Center within the discount period. May 25 Friends received cash of two televisions with in discount period. Instructions a. Prepare journal entries to record these transactions assuming that Friends records purchases of merchandise at: 1. Net cost 2. Gross invoice price b. Assume that Friends did not pay Sony Center and received cash within the discount period. Prepare journal entries to record this payment and receipt assuming that the original liability and Asset had been recorded at: 1. Net cost 2. Gross invoice price
I do not know You know
Mr. Brew Cafeteria has computed the indifference point between debt and common equity financing options to be $4 millions of EBIT. EBIT is approximately normally distributed with an expected value of $4.5 million and a standard deviation of $600,000. What is the probability that the equity financing option will be superior to the debt option
Answer: 20.33%
Explanation:
The probability of having the equity financing option having higher figures than debt is the probability of having EBIT lower than the indifference point of $4million. We would use the z-score to find the probability of having a lower EBIT.
z-score = indifference point - expected EBIT/ standard deviation
Which would be; 4000000-4500000/600000= -0.83.
From our table, -0.83 is 20.33%.
Steve has been given the charge of managing unskilled labor in the production units of his company. These workers are primarily motivated by financial incentives and other perks such as discount coupons and free movie or lunch days. In this scenario, which of the following power bases should Steve primarily use to influence the workers to improve their productivity?
a. Referent power
b. Expert power
c. Reward power
d. Information power
Answer:
c. Reward power
Explanation:
Reward power is the power to influence employees or to impress employees by giving them some reward for doing certain things. The reward is clear and vague . so correct option is c. Reward powerFrederick Group uses ABC to account for its chrome wheel manufacturing process. Company managers have identified four manufacturing activities that incur manufacturing overhead costs: materials handling, machine setup, insertion of parts, and finishing. The budgeted activity costs for the upcoming year and their allocation bases are as follows:
Activity Total budgeted manufacturing overhead cost Allocation base
Material handeling 8700 Number of parts
Machine setup 4650 Number of setups
Insertion of parts 49300 Number of parts
Finishing 75600 Finishing direct labour hours
Total 138250
Frederick Group expects to produce 1,000 chrome wheels during the year.
The wheels are expected to use 2,900 parts, require 15 setups, and consume 1,800 hours of finishing time. Job 420
Job 420 used 150 parts, required 4 setups, and consumed 120 finishing hours.
Job 510 used 500 parts, required 5 setups, and consumed 320 finishing hours.
Requirements
1.Compute the cost allocation rate for each activity.
2. Compute the manufacturing overhead cost that should be assigned to Job 420.
3. Compute overhead cost that should be assigned to Job510.
Answer:
Results are below.
Explanation:
First, we need to calculate the activities allocation rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Material handeling= 8,700/2,900= $3 per part
Machine setup= 4,650/15= $310 per setup
Insertion of parts= 49,300/2,900= $17 per part
Finishing= 75,600/1,800= $42 per direct labor hour
Now, we can allocate overhead to Job 420:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Material handeling= 3*150= $450
Machine setup= 310*4= $1,240
Insertion of parts= 17*150= $2,550
Finishing= 42*120= $5,040
Total allocated costs= $9,280
Finally, allocated costs to Job 510:
Material handeling= 3*500= $1,500
Machine setup= 310*5= $1,550
Insertion of parts= 17*500= $8,500
Finishing= 42*320= $13,440
Total allocated costs= $24,990
Suppose a student-athlete has the opportunity to earn $600,000 next year playing for a minor league baseball team, $100,000 next year playing for a European professional football team, or $0 returning to college for another year.
The opportunity cost of the student-athlete returning to college next year is $
I entered $100,000 and got it wrong.
Answer:
it's 0
Explanation:
hes returning to college and making zero money
If TOMS advertised its shoes differently
Answer:
it might have more sales <3
Explanation:
The following are the trial balance and the other information related to Brian Consulting Engineer.
BRIAN CONSULTING ENGINEER
TRIAL BALANCE
DECEMBER 31, 2020
Debit Credit
Cash $29,500
Accounts Receivable 56,200
Allowance for Doubtful Accounts $754
Supplies 2,370
Prepaid Insurance 1,710
Equipment 26,900
Accumulated Depreciation-Equipment 6,232
Notes Payable 7,200
Owner’s Capital 36,778
Service Revenue 117,230
Rent Expense (13 months of rent) 10,595
Salaries and Wages Expense 34,700
Utilities Expenses 1,720
Office Expense 620
Totals $168,255 $168,255
1. Fees received in advance from clients $5,980, which were recorded as revenue.2. Services performed for clients that were not recorded by December 31, $4,558.3. Bad debt expense for the year is $1,328.4. Insurance expired during the year $519.5. Equipment is being depreciated at 10% per year.6. Pearl Perez gave the bank a 90-day, 10% note for $7,200 on December 1, 2017.7. Rent of the building is $815 per month. The rent for 2017 has been paid, as has that for January 2018, and recorded as Rent Expense.8. Office salaries and wages earned but unpaid December 31, 2017, $2,616.Pearl Perez withdrew $16,090 cash for personal use during the year.
1. From the trial balance and other information given, prepare annual adjusting entries as of December 31, 2017.2. Prepare an income statement for 2017.
3. Prepare a classified balance sheet for 2017.
4. Prepare a statement of owner’s equity for 2017.
Answer:
Brian Consulting Engineer
1. Adjusting Entries:
a. Debit Service Revenue $5,980
Credit Unearned Fees $5,980
To record unearned fees.
b. Debit Accounts Receivable $4,558
Credit Service Revenue $4,558
To record services performed for clients.
c. Debit Bad Debt Expense $1,328
Credit Allowance for Uncollectibles $1,328
To record bad debt expense for the year.
d. Debit Insurance Expense $519
Credit Prepaid Insurance $519
To record expired insurance expense.
e. Debit Depreciation Expense- Equipment $2,690
Credit Accumulated Depreciation- Equipment $2,690
To record depreciation expense for the year.
f. Debit Interest Expense $60
Credit Interest Payable $60
To record interest expense for a month.
g. Debit Prepaid Rent $815
Credit Rent Expense $815
To record prepaid rent for January 2018.
h. Debit Salaries & Wages Expense $2,616
Credit Salaries & Wages Payable $2,616
To record accrued salaries and wages.
i. Debit Drawings $16,090
Credit Cash $16,090
To record drawing for personal use.
2. Income Statement for the year ended December 31, 2017:
Service Revenue $115,808
Depreciation Expense-
Equipment 2,690
Rent Expense 9,780
Bad Debt Expense 1,328
Salaries and
Wages Expense 37,316
Utilities Expense 1,720
Office Expense 620
Interest Expense 60
Insurance Expense 519
Suspense 3,879 $57,912
Net Income $57,896
3. Classified Balance Sheet as of the year ended December 31, 2017:
Assets
Current Assets:
Cash $13,410
Accounts Receivable 60,758
Allowance for
Doubtful Accounts 2,082 58,676
Supplies 2,370
Prepaid Insurance 1,191
Prepaid Rent 815 $76,462
Long-term Assets:
Equipment 26,900
Accumulated Depreciation 8,922 $17,978
Total assets $94,440
Liabilities + Equity
Liabilities:
Notes Payable 7,200
Salaries & Wages Payable 2,616
Interest Payable 60
Unearned Fees 5,980 $15,856
Owner’s Capital 36,778
Drawings (16,090)
Net Income 57,896 $78,584
Total Liabilities + Equity $94,440
4. Statement of Owner's Equity as of the year ended December 31, 2017:
Owner’s Capital $36,778
Drawings (16,090)
Net Income 57,896
Owner's Capital, ending $78,584
Explanation:
a) Data and Calculations:
BRIAN CONSULTING ENGINEER
TRIAL BALANCE
DECEMBER 31, 2020
Debit Credit
Cash $29,500
Accounts Receivable 56,200
Allowance for Doubtful Accounts $754
Supplies 2,370
Prepaid Insurance 1,710
Equipment 26,900
Accumulated Depreciation-Equipment 6,232
Notes Payable 7,200
Owner’s Capital 36,778
Service Revenue 117,230
Rent Expense
(13 months of rent) 10,595
Salaries and
Wages Expense 34,700
Utilities Expense 1,720
Office Expense 620
Totals $????
Adjusted Trial Balance
Debit Credit
Cash $13,410
Accounts Receivable 60,758
Allowance for Doubtful Accounts $2,082
Supplies 2,370
Prepaid Insurance 1,191
Prepaid Rent 815
Equipment 26,900
Accumulated Depreciation-Equipment 8,922
Notes Payable 7,200
Salaries & Wages Payable 2,616
Interest Payable 60
Owner’s Capital 36,778
Drawings 16,090
Service Revenue 115,808
Unearned Fees 5,980
Depreciation Expense-
Equipment 2,690
Rent Expense 9,780
Bad Debt Expense 1,328
Salaries and
Wages Expense 37,316
Utilities Expense 1,720
Office Expense 620
Interest Expense 60
Insurance Expense 519
Suspense 3,879
Totals $179,446 $179,446
Problem 10-3A The following section is taken from Hardesty's balance sheet at December 31, 2016. Current liabilities Interest payable $ 46,500 Long-term liabilities Bonds payable (9%, due January 1, 2020) 565,000 Interest is payable annually on January 1. The bonds are callable on any annual interest date. (a) Journalize the payment of the bond interest on January 1, 2017. (b) Assume that on January 1, 2017, after paying interest, Hardesty calls bonds having a face value of $160,000. The call price is 107. Record the redemption of the bonds. (c) Prepare the adjusting entry on December 31, 2017, to accrue the interest on the remaining bonds.
Answer:
Hardesty
a) January 1, 2017:
Debit Interest payable $46,500
Credit Cash $46,500
To record the payment of interest on bonds.
b) January 1, 2017:
Debit Long-term liabilities Bonds payable $160,000
Debit Bonds Redemption Expense $11,200
Credit Cash $171,200
To record the redemption of bonds at 107.
c) December 31, 2017:
Debit Interest Expense $36,450
Credit Interest Payable $36,450
To record interest expense for balance of bonds.
Explanation:
a) Data and Calculations:
Current liabilities
Interest payable $ 46,500
Long-term liabilities Bonds payable (9%, due January 1, 2020) $565,000
Interest payment date = January 1
Face value of bonds called = $160,000
Call price = 107
Bond redemption expense = ($160,000 * 107/100) - $160,000 = $11,200
Interest expense for 2017:
= ($565,000 - $160,000) * 9% = $36,450
Fox Corporation has provided its contribution format income statement for June. The company produces and sells a single product: sales (2,700 units), $261,900; variable costs, $102,600; contribution margin, $159,300; fixed costs, $136,300; and operating profit, $23,000.If the company sells 3,000 units, its total contribution margin should be closest to _____.A. $25,556
Answer:
Total contribution margin= $177,000
Explanation:
First, we need to calculate the unitary contribution margin:
Unitary contribution margin= total contribution margin / number of units
Unitary contribution margin= 159,300 / 2,700
Unitary contribution margin= $59
Now, the total contribution margin for 3,000 units:
Total contribution margin= 3,000*59
Total contribution margin= $177,000
Forming a joint venture with an existing foreign company offers all of the following advantages excepta.providing control over product attributes.b.joining an established firm.c.requiring less commitment from all parties involved in the joint venture.d.providing immediate marketing knowledge.e.providing reduced risk.
Answer:
The correct answer is the option C: Requiring less commitment from all parties involved in the joint venture.
Explanation:
To begin with, the name of "joint venture" in the field of business refers to the method and strategy whose process consists of incorporating two or more parties into one only form of company with the final purpose of increasing the sales of every party included in the agreement and doing that by different ways. Moreover, generally this strategy has its focus on the fact of entering a new market or acquiring new management that will come with more resources and more. So that is why that it brings a lot of advantages as stated in the case presented but absolutely not less commintment from every party involved in it.