Answer:
a. Debit Cost of goods sold for $25; and Credit LIFO Reserve for $25.
b. Cost of goods sold in 2021 if FIFO is used would have been $2,775.
Explanation:
a. Greene adjusts the LIFO reserve (Allowance to Reduce Inventory to LIFO) at the end of its fiscal year. Prepare the December 31, 2021, adjusting entry to record the cost of goods sold adjustment.
Change in LIFO reserve = Current year LIFO reserve = LIFO Reserve balance in 2021 - LIFO Reserve balance in 2020 = $75 - $50 = $25
The adjusting entry will therefore look as follows:
Date General Journal Debit ($'m) Credit ($'m)
31 Dec 2021 Cost of goods sold 25
LIFO Reserve 25
(To record the cost of goods sold adjustment.)
b. If Green had used FIFO to value its inventories, what would cost of goods sold have been for the 2021 fiscal year?
This can be calculated as follows:
Cost of goods sold in 2021 if FIFO is used = Cost of goods sold reported in the income statement + Change in LIFO reserve = $2,750 + $25 = $2,775
Arntson, Inc., manufactures and sells two products: Product R3 and Product N0. The annual production and sales of Product of R3 is 200 units and of Product N0 is 100 units. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected ProductionDirect Labor-Hours Per UnitTotal Direct Labor-Hours Product R32008.01,600 Product N010011.01,100 Total direct labor-hours 2,700 The direct labor rate is $15.80 per DLH. The direct materials cost per unit is $287.80 for Product R3 and $104.80 for Product N0. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: EstimatedExpected Activity Activity Cost PoolsActivity MeasuresOverhead CostProduct R3Product N0Total Labor-relatedDLHs$39,6361,6001,1002,700 Production ordersorders 57,4216007001,300 Order sizeMHs 432,0753,6003,9007,500 $529,132 The unit product cost of Product N0 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) Select one: A. $2,042.37 per unit B. $2,434.27 per unit C. $2,996.06 per unit D. $2,525.39 per unit
Answer:
C.$2,996.06 per unit
Explanation:
Calculation to determine what The unit product cost of Product N0 under activity-based costing is closest to:
First step is to Compute the activity rates
Activity Cost (a)Estimated Overhead cost (b)Total Expected Activity (a) ÷(b)Activity Rate
Labor-related $39,636÷2,700DLHs=$14.68per DLH
Production orders $57,421÷ 1,300orders =$44.17per order
Order size $432,075 ÷7,500MHs =$57.61per MH
Second step is to Compute the overhead cost per unit under activity-based costing
Using this formula
Overhead cost per unit=Activity Cost Pools and Activity Rates*Expected Activity=Amount
Let plug in the formula
Product N0
Labor-related, at $14.68 per DLH *1,100 =$16,148
Production orders, at $44.17 per order *700 =$30,919
Order size, $57.61 per MH *3,900 =$224,679
Total overhead costs assigned (a)$271,746
($16,148+$30,919+$224,679)
Number of units produced (b)100
Overhead cost per unit (a) ÷ (b)$2,717.46
($271,746÷100)
Third step is to Compute the unit product costs under activity-based costing
Product N0
Direct materials $104.80
Direct labor $173.80
(11.0 DLHs × $15.80 per DLH)
Overhead $2,717.46
Unit product cost $2,996.06
($104.80+$173.80+$2,717.46)
Therefore The unit product cost of Product N0 under activity-based costing is closest to: $2,996.06
Companies that depend upon and highly value the contribution of intellectual capital to good strategy execution, generally do not:___________.
A. provide their employees with challenging, interesting, and skill-stretching assignments and also rotating them through jobs that not only have great content but also span functional and geographic boundaries.
B. implement rewards and benefits programs such as promotions, salary increases, performance bonuses, stock options, and other perks.
C. invest time and money into coaching underperformers and benchwarmers to improve their skills and capabilities.
D. encourage their employees to challenge existing ways of doing things, to be creative and innovative in proposing better ways of operating, and to push their ideas for new products or businesses.
E. foster a stimulating and engaging work environment so that their employees will consider the company a great place to work.
Answer:
Option c: Invest time and money into coaching underperformers and benchwarmers to improve their skills and capabilities
Explanation:
The staffing the organization, building core competencies and competitive capabilities, structuring of the organization and work effort of everyone involved is important to growth of companies. Firms or organizations will not employ individuals who will not contribute to its growth. They rather employ capable hands and intelligent people to work and move the country forward. The requirements of a Good Strategy Execution demands team effort. All managers have strategy executing responsiblility in their areas of authority, and all employees are active participants in the stategy execution process.
Research shows that global managers face a much different leadership context as compared to their domestic counterparts.
a. True
b. False
Answer:
a. True
Explanation:
The statement is correct due to the fact that global managers have a leadership style focused on a multicultural environment, while domestic managers have a leadership trait that is directly impacted by local culture, as is the case, for example, of company managers in Muslim countries. , where there is a code of conduct and management very different from that practiced in companies in America for example. There are several leadership styles, some of which are autocratic, human and participatory, and the local and organizational culture directly influences the style of domestic management.
The following information applies to the questions displayed below Over a four-year period, Jackie Corporation reported the following series of gross profits 2018 2019 2020 2021 $60,000 $66,000 $74,000 $90,000 Cost of goods sold32,000 46,00028,000 48,000 $28,000 $20,000 $46,000 $42,000 Net sales Cross profit In 2021, the company performed a comprehensive review of its inventory accounting procedures. Based on this review company records reveal that ending inventory was understated by $11,000 in 2019. Inventory in all other years is correct. Problem 6-10A Part 1
Required:
1. Calculate the gross profit ratio for each of the four years based on amounts originally reported. (Round your answers to the nearest whole percent.) Gross Profit Ratio 2018 2019 2020 2021 The following information applies to the questions displayed below Over a four-year period, Jackie Corporation reported the following series of gross profits 2021 Net sales Cost of goods sold Gross profit $60,000 $66,000 $74,000 $90,000 $28,000 $20,000 46,000 $42,000 In 2021, the company performed a comprehensive review of its inventory accounting procedures. Based on this review, company records reveal that ending inventory was understated by $11,000 in 2019. Inventory in all other years is correct
2. Calculate the gross profit ratio for each of the four years based on corrected amounts. (Round your answers to the nearest whole percent.) Gross Ratio 2018 2019 2020 2021
Answer:
1. Gross Profit ratio
2018 47%
2019 30%
2020 62%
2021 47%
2. Gross Profit ratio
2018 47%
2019 47%
2020 47%
2021 47%
Explanation:
1. Calculation for the gross profit ratio for each of the four years based on amounts originally reported.
2018 2019 2020 2021
Net sales $60,000 $66,000 $74,000 $90,000
Less Cost of goods sold $32,000 $46,000 $28,000 $48,000
=Gross profit$ 28,000 $20,000 $46,000 $42,000
Gross Profit ratio
2018 47% =$28,000/$60,000
2019 30% =$20,000/$66,000
2020 62% =$46,000/$74,000
2021 47% =$42,000/$90,000
2. Calculation for the gross profit ratio for each of the four years based on corrected amounts.
Cost of goods sold 2019=$46,000-$11,000
Cost of goods sold 2019=$35,000
Cost of goods sold 2020=$28,000+$11,000
Cost of goods sold 2020=$39,000
2018 2019 2020 2021
Net sales $60,000 $66,000 $74,000 $90,000
Less Cost of goods sold $32,000 $35,000 $39,000 $48,000
=Gross profit $28,000 $31,000 $35,000 $42,000
Gross Profit ratio
2018 47% =$28,000/$60,000
2019 47% =$31,000/$66,000
2020 47% =$35,000/$74,000
2021 47% =$42,000/$90,000
The Jamison Company's inventory was destroyed on July 4, 2016, when its warehouse caught on fire early in the morning. Inventory was totally destroyed. The accounting records, which were located in a fireproof vault, contained the following information: Sales (1/1/16 through 7/3/16)$240,000 Purchases (1/1/16 through 7/3/16)180,000 Inventory (1/1/16)45,000 Gross profit ratio25% of cost Using the gross profit method, what is the estimated cost of the inventory that was destroyed by the fire
Answer:
$15,000
Explanation:
With regards to the above information, the estimated cost of inventory that was destroyed by fire is computed as
= [Sales - (Purchases + Inventory)]
Given that;
Sales 1/1/16 through 7/3/16 = $240,000
Purchases 1/1/16 through 7/3/16 = $180,000
Inventory 1/1/16 = $45,000
= [$240,000 - ($180,000 + $45,000)]
= $240,000 - $225,000
= $15,000
Match each of the principles and phases in the development of an accounting system with the statement that best describes them.
1. Information must be understandable, relevant, reliable, timely, and accurate.
2. Benefits of information must outweigh the cost of providing it.
3. The system should accommodate a variety of users and changing information needs.
4. The accounting system must consider the needs and knowledge of various users.
5. The system should be capable of meeting the changes in the demands made upon it.
a. Useful output
b. Cost effectiveness
c. Flexibility
Answer:
. Useful output
Cost effectiveness
Flexibility
Useful output
Flexibility
Explanation:
Accounting principles are guidelines that should guide companies when reporting financial data.
If the output is useful, it would contain the information needed by users of accounting information in terms they understand, on time and it should not be misleading
The accounting information should be cost effective. It should be profitable to the company to provide the information. The cost of providing the information should be less than the cost
The information should be flexible. It should not only be suitable for only some particular users of accounting information but to all users of accounting information
(1 point) The manager of a large apartment complex knows from experience that 110 units will be occupied if the rent is 300 dollars per month. A market survey suggests that, on the average, one additional unit will remain vacant for each 2 dollar increase in rent. Similarly, one additional unit will be occupied for each 2 dollar decrease in rent. What rent should the manager charge to maximize revenue
Answer:
$270
Explanation:
If the rent is $300 then 110 units will be occupied. The manager of the apartment complex should set a price which will maximize the revenue. When the rent is increased by $2 then one additional unit will be left vacant. This will reduce the revenue of the apartment manager. The equation to find the best possible rent which maximizes the total revenue is:
Profit = 110 (p - 300)
P = 110p - 330
P = 270.
The rent for the apartment should be 270 so the total revenue will be maximized.
Imagine a hypothetical economy with a population of 100 people, 80 of which over sixteen. Forty eight of these people who are working and twelve people who are willing, able and looking for work cannot find jobs. The unemployment rate in this economy is____________ % (enter percentage as a whole number, not a decimal, no percentage sign). S
Suppose that 10 of those unemployed people get discouraged and give up looking for work. Now, the unemployment rate is __________% (enter percentage as a whole number, not a decimal, no percentage sign).
Answer:
a) unemployment rate = 15
b) unemployment rate = 2.5
Explanation:
unemployed people are those who are willing and available to work and have actively been seeking a job in the past four weeks. This accurately describes the 12 people who are willing, able and looking for work but cannot find jobs. To calculate the unemployment rate in percentage, the following formula is used:
[tex]unemployment\ rate = \frac{number\ of\ unemployed}{labour\ force} \times 100\\[/tex]
Where:
a) Number of unemployed = 12
Labour force = 80 (number of people over 16 years of age)
[tex]\therefore unemployment\ rate = \frac{12}{80} \times 100 = 0.15 \times 100 = 15\\[/tex]
b) if 10 of the unemployed people get discouraged and give up looking for work, the number of unemployed becomes 2 persons, (12 - 10 = 2).
[tex]\therefore unemployment\ rate = \frac{2}{80} \times 100 = \frac{200}{80} = 2.5[/tex]
Jack and Jill are the only two residents in a neighbourhood, and they would like to hire a security guard. The value of a security guard is $50 per month to Jack and $90 per month to Jill. Irrespective of who pays the guard, the guard will protect the entire neighbourhood and charge $120 per month for the service. Suppose Jack earns $4,000 per month and Jill earns $8,000 per month.
a. With a proportional tax of 1 percent on income, how much would Jack and Jill pay, and would it be enough to pay for the security guard?
Jack would pay $ _____.
Jill would pay $ _____.
This tax _____ be enough to pay for the security guard.
b. Suppose instead that Jack proposes a payment scheme under which Jack and Jill would each receive the same net benefit from hiring the guard. How much would Jack and Jill pay now?
Jack would pay $ _____.
Jill would pay $ _____.
Would both Jack and Jill vote for this scheme? _____
Answer:
Jack and Jill
a. With a proportional tax of 1 percent on income, it would be enough to pay for the security guard $120.
Jack would pay $ __40___.
Jill would pay $ __80___.
This tax _will____ be enough to pay for the security guard.
b. Based on net benefit from the guard:
Jack would pay $ __43___.
Jill would pay $ _ 77____.
Would both Jack and Jill vote for this scheme? __No___ Jack will feel cheated by Jill in the sum of $3. Jack will likely prefer the 1% based on income.
Explanation:
a) Data and Calculations:
Value of a security guard for Jack = $50 per month
Value of a security guard for Jill = $90 per month
Total value of a security guard for both Jack and Jill = $140 ($50 + $90)
Cost of hiring a guard = $120 per month
Jack's monthly earnings = $4,000
Jill's monthly earnings = $8,000
Total monthly earnings for both Jack and Jill = $12,000
a. Proportional tax of 1 percent on income = $120 ($12,000 * 1%)
Jack will pay $4,000 * 1% = $40
Jill will pay $8,000 * 1% = $80
Total = $120
b. Net benefit scheme:
Jack will pay $50/$140 * $120 = $43
Jill will pay $90/$140 * $120 = $77
Total = $120
Beeman Company exchanged machinery with a fair value of $4,680,000, a recorded cost of $7,200,000 and accumulated depreciation of $3,600,000 with Lacey Corporation for machinery Lacey owns.
The machinery that Lacey owns has a fair value of $4,520,000, a recorded cost of $8,640,000, and accumulated depreciation of $4,752,000. Lacey also gave Beeman $160,000 of cash in the exchange. Assume depreciation has already been updated.
Instructions
(a) Prepare the entries on both companies' books assuming that the exchange had commercial substance.
(b) Prepare the entries on both companies' books assuming that the exchange lacked commercial substance
Answer:
See below
Explanation:
A. Commercial substance
Beeman company
Machinery ...............................Dr
$4,520,000
Accumulated depreciation......Dr $3,600,000
Cash.......Dr $160,000
To Gain on disposal of plant assets ..........Cr $1,080,000
To equipment ............Cr $7,200,000
Lacey Company
Equipment ............Dr $4,680,000
Accumulated depreciation ........Dr $4,752,000
To Gain on disposal of equipment ..............Cr $632,000
To equipment ...........Cr $8,640,000
To cash ................Cr $160,000
B. Lacked commercial substance
Berman company
Equipment ............Dr $3,476,923
Accumulated depreciation .........Dr $3,600,000
Cash ........Dr $160,000
To gain on disposal of equipment ..............Cr $36,923
To equipment ..............Cr $7,200,000
Working
= ($160,000 / ($160,000 + $4,520,000) × $1,080,000
= $36,923
Lacey corporation
Equipment ..............Dr $4,048,000
Accumulated depreciation...........Dr $4,752,000
To equipment .................Cr $8,640,000
To cash ..................................... Cr $160,000
Commercial substance
Lacey company
Cost............ Dr $8,640,000
Accumulated depreciation...........Dr $4,752,000
Book value............... Dr $3,888,000
Fair value.......... Dr $4,520,000
Gain on disposal .................Dr $632,000
Stockbrokers who market their services with confidence that they can outperform the market average in picking stocks are especially likely to a employ workers who use heuristics. b find it difficult to decide which stocks to purchase. c use algorithms to generate stock choices. d avoid the dangers of belief perseverance. e appear credible to their customers.
Answer:
e. appear credible to their customers.
Explanation:
Sarbanes-Oxley Act of 2002 is a legal framework which was passed by the 107th U.S Congress on the 30th of July, 2002. The law required that investment banking be completely made rid of research analysts who works at a broker-dealer firms, so that the analysts are not influenced to write favorable reports to enhance their potential investment banking businesses.
It is a law that imposes a stiffer penalty for any securities related law-break offence by accountants, auditors, etc., by mandating strict reforms to the existing securities regulations.
A stockbroker refers to an individual who is saddled with the responsibility of buying and selling stocks (shares) on a stock exchange market on behalf of his or her clients.
Stockbrokers who market their services with confidence that they can outperform the market average in picking stocks are especially likely to appear credible to their customers.
Concord Corporation had 302000 shares of common stock issued and outstanding at December 31, 2020. No common stock was issued during 2021. On January 1, 2021, Concord issued 201000 shares of nonconvertible preferred stock. During 2021, Concord declared and paid $100000 cash dividends on the common stock and $81000 on the preferred stock. Net income for the year ended December 31, 2021 was $611000. What should be Concord's 2021 earnings per common share
Answer:
$1.05 per share
Explanation:
Earnings per share is computed as
= (Net income reported - Preferred stock dividend) ÷ (Outstanding number of shares + additional shares issued)
= ($611,000 - $81,000) ÷ (302,000 + 201,000)
= $530,000 ÷ 503,000
= $1.05 per share.
Therefore, Concord's 2021 earnings per common share is $1.05 per share.
During January, its first month of operations, Dieker Company accumulated the following manufacturing costs: raw materials $5,100 on account, factory labor $7,500 of which $5,800 relates to factory wages payable and $1,700 relates to payroll taxes payable, and factory utilities payable $2,900. Prepare separate journal entries for each type of manufacturing cost. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Answer:
Jan 31
Dr Raw materials inventory $5,100
Cr AccountsPayable $5,100
Jan 31
Dr Work in Process inventory $7,500
Cr Factory wages payable $5,800
Cr Payroll taxes payable $1,700
Jan 31
Dr Manufacturing overhead $2,900
Cr Utilities payable $2,900
Explanation:
Preparation of a separate journal entries for each type of manufacturing cost
Jan 31
Dr Raw materials inventory $5,100
Cr AccountsPayable $5,100
Jan 31
Dr Work in Process inventory $7,500
Cr Factory wages payable $5,800
Cr Payroll taxes payable $1,700
Jan 31
Dr Manufacturing overhead $2,900
Cr Utilities payable $2,900
The Bandeiras Corporation, a merchandising firm, has budgeted its activity for December according to the following information:Sales at $650,000, all for cash.Merchandise inventory on November 30 was $300,000.The cash balance at December 1 was $38,000.Selling and administrative expenses are budgeted at $120,000 for December and are paid in cash.Budgeted depreciation for December is $65,000.The planned merchandise inventory on December 31 is $330,000.The cost of goods sold is 70% of the sales price.All purchases are paid for in cash.There is no interest expense or income tax expense.The budgeted cash receipts for December are:
Answer:
See below
Explanation:
The budgeted cash disbursement for December are;
Beginning cash balance
$38,000
Sales
$650,000
Selling and admin
($120,000)
* Purchases (see calculation below)
($485,000)
Closing cash balance
$83,000
We will use the below to get purchases
Opening stock + Purchases - Closing stock = Cost of sales
Therefore,
$300,000 + Purchases - $330,000 = 70% × $650,000
Purchases = $455,000 + $330,000 - $300,000
Purchases = $485,000
The budgeted cash disbursement
= Purchases + Selling and admin
= $485,000 + $120,000
= $605,000
Triple Tier Bakery is a locally-owned business offering custom cakes, cupcakes, desserts and wedding cakes. At year end, Triple Tier's balance of Allowance for Uncollectible Accounts is $550 (credit) before adjustment. The Accounts Receivable balance is $22,500. During the next year, Triple Tier estimates that 10% of accounts will be uncollectible. Record the adjustment required for Allowance for Uncollectible Accounts?
Answer and Explanation:
The adjusting entry is
Bad Debts expense ($22,500 ×10% - $550) $1,700
To Allowance for uncollectible accounts $1,700
(Being adjustment for Allowance for Uncollectible Accounts is recorded)
Here bad debt expense is debited as it increased the expense and credited the allowance as it reduced the assets
When Valley Co. acquired 80% of the common stock of Coleman Corp., Coleman owned land with a book value of $75,000 and a fair value of $125,000. What is the amount of excess land allocation attributed to the noncontrolling interest at the acquisition date
Answer:
$10,000
Explanation:
The amount of excess land allocation attributed to the non controlling interest at the acquisition date is computed below;
Non controlling interest of acquisition date
= (Book value of land - Fair value of land) × 20%
Given that;
Book value of land = $125,000
Fair value of land = $75,000
Then,
Non controlling interest of acquisition date
= ($125,000 - $75,000) × 20%
= $50,000 × 20%
= $10,000
Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: Sales are budgeted at $320,000 for November, $300,000 for December, and $290,000 for January. Collections are expected to be 55% in the month of sale and 45% in the month following the sale. The cost of goods sold is 70% of sales. The company would like to maintain ending merchandise inventories equal to 70% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are $23,800. Monthly depreciation is $14,800. Ignore taxes. Balance Sheet October 31 Assets Cash $ 21,400 Accounts receivable 71,400 Merchandise inventory 156,800 Property, plant and equipment, net of $573,400 accumulated depreciation 1,095,400 Total assets $ 1,345,000 Liabilities and Stockholders' Equity Accounts payable $ 255,400 Common stock 821,400 Retained earnings 268,200 Total liabilities and stockholders' equity $ 1,345,000 The difference between cash receipts and cash disbursements for December would be:
Answer:
Bramble Corporation
The difference between cash receipts and cash disbursements for December would be:
= $71,000
Explanation:
a) Data and Calculations:
Balance Sheet October 31
Assets Cash $ 21,400
Accounts receivable 71,400
Merchandise inventory 156,800
Property, plant and equipment,
net of $573,400 accumulated
depreciation 1,095,400
Total assets $ 1,345,000
Liabilities and Stockholders' Equity
Accounts payable $ 255,400
Common stock 821,400
Retained earnings 268,200
Total liabilities and
stockholders' equity $ 1,345,000
November December January
Budgeted sales $320,000 $300,000 $290,000
Cash Collections:
55% month of sale 176,000 165,000 159,500
45% following month 71,400 144,000 135,000
Total collections $247,400 $309,000 $294,500
Cost of goods sold $224,000 $210,000 $203,000
= (70% of Sales for the month)
Ending Inventory 147,000 142,100
Goods available $371,000 $352,000
Beginning Inventory 156,800 147,000 142,100
Purchases $214,200 $205,000
Cash disbursements:
Payment to suppliers 255,400 214,200 205,000
Other monthly exp. 23,800 23,800
Total disbursements $279,200 $238,000
Comparison of Cash receipts with Cash disbursements:
November December
Cash receipts $247,400 $309,000
Cash disbursements $279,200 $238,000
Difference ($31,800) $71,000
Suppose a firm produces with a technology that exhibits constant returns to scale at all levels of production. The firm's inputs are workers and laptops. The firm sells its output in a perfectly competitive market. It also hires its inputs (hires workers and rents laptops) in perfectly competitive markets. Assume that in the long run the firm produces y units of output using x1 workers and x2 laptops. If the firm doubles the amount of workers and laptops (using 2x1 and 2x2), we would expect the firm's long-run profits to
Answer:
Not change
Explanation:
In the long run we expect firms to earn zero profits. With competitive markets for both inputs and output, and with constant returns to scale, a doubling of all inputs would lead to twice as much output, twice as much revenue, and twice as much cost.
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which gas is reffered to as laughing gas
اماده) که
Answer:
Nitrous oxide is a safe and effective sedative agent that is mixed with oxygen and inhaled through a small mask that fits over your nose to help you relax. Nitrous oxide, sometimes called “laughing gas,” is one option your dentist may offer to help make you more comfortable during certain procedures.
I don't understand the Arabic part
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All materials are added at the start of production. Refer to Keyser Corporation. Assume that the cost per EUP for material and conversion are $1.75 and $4.55, respectively. What is the cost assigned to ending Work in Process
Answer:
The cost assigned to ending Work in Process explanations only.
Explanation:
Hi your question is incomplete, I tried to look for it online but I could not find it.
Here are some explanations and steps you need to consider to answer this question.
The cost assigned to ending Work in Process :
Ending Work in Process usually have different number of equivalent units of production with respect to materials and conversion cost depending on the percentage of work completed for materials and conversion during the production process.
Step 1
So the first step is to calculate the equivalent units of production of Ending Ending work in process for Materials and Conversion costs.
Equivalent units of production = Physical units x Percentage completion (Materials / Conversion).
Step 2
The next step would be to calculate the cost assigned to ending Work in Process.
Equivalent units in materials are multiplied against Cost per Equivalent Unit) EUP for materials ($1.75 ) so is the Equivalent units in conversion costs against Cost per Equivalent Unit) EUP for conversion ($1.75). The total of the two amounts is the cost assigned to ending Work in Process.
Scare-2-B-U (S2BU) specializes in costumes for all occasions. The average price of each of its costumes is $240. For each occasion, S2BU receives a 20 percent deposit two months before the occasion, 50 percent the month before, and the remainder on the day the costume is delivered. Based on information at hand, managers at S2BU expect to make costumes for the following number of occasions during the coming months. April 75 May 45 June 30 July 60 August 75 September 165 Required: a. What are the expected revenues for S2BU for each month, April through September
Answer:
Results are below.
Explanation:
Giving the following information:
Selling price= $240
Sales in units:
April 75
May 45
June 30
July 60
August 75
September 165
The sales revenue is calculated using the following formula:
Sales revenue= number of units sold * selling price per unit
Sales revenue:
April= 75*240= $18,000
May= 45*240= $10,800
June= 30*240= $7,200
July= 60*240= $14,400
August= 75*240= $18,000
September= 165*240= $39,600
AAA Advertising hires Christopher as a photographer to take photographs of products for AAA’s use in its advertising campaigns. Christopher is to use his own DSLR camera. Christopher will have an office at AAA but only needs to come in 10 hours a week, of his own choosing. Christopher will work under a supervisor who will tell him exactly what photos to take and how many of each product. He will be paid a flat $2,000 salary every other week, regardless of how much work he does. 1) What is Christopher’s employment status with AAA, is he an employee or independent contractor? 2) Discuss each of the applicable factors used to determine whether a worker is an independent contractor or employee.
Answer:
Christopher is an Employee
Explanation:
1) Christopher is an Employee because he is been paid a flat rate regardless of the amount of work he puts in, also he is directly supervised, has an office in AAA and also he must put in 10 hours of work per week
2) Factors that makes a worker an independent contractor or an Employee includes
level of instruction; If the company or its representative directs the worker on how, when and where a job can be done this indicates that the worker is an employee work schedule: An independent contractor is totally in control of his time and determines the amount of hours to put in but if the work schedule is determined by the company then it will be an employee arrangement form of payment ; Hourly, weekly and monthly payments are mostly used for employees ,most independent contractors collect their pay once a task is completed by themprofit or loss : Employees do not share in the profit or loss of the organization since they are paid a flat rate.What is the solution to this problem?
Flintstone Company is owned equally by Fred Stone and his sister Wilma, each of whom hold 2,400 shares in the company. Wilma wants to reduce her ownership in the company, and it was decided that the company will redeem 480 of her shares for $30,700 per share on December 31 of this year. Wilmaâs income tax basis in each share is $7,900. Flintstone has current E&P of $10,930,000 and accumulated E&P of $50,210,000.
a. What is the amount and character (capital gain or dividend) recognized by Wilma as a result of the stock redemption, assuming only the "substantially disproportionate with respect to the shareholder" test is applied?
b. What is Wilmaâs income tax basis in the remaining 1,920 shares she owns in the company?
c. Assuming the company did not make any dividend distributions this year, by what amount does Flintstone reduce its E&P as a result of the redemption?
Answer:
Explanation:
From the given information:
In Flinstone company;
The old ownership = 2400/(2400+200) = 50%
New onwership = 1920/(1920 + 2400) = 44.4%
The reduction in Wilma ownership in Flinstone company is from 50% to 44.4%
Dividend amount perceived by WIlma is:
$30700 × 480 shares = $14,736,000
The responsibility of Wilma in the wake of taking the redemption is in reality more than the 40% (80% x 50%), so she fails the considerably disproportionate test.
Hence, dividend recognition = $1,47,36,000
b)
Wilma's personal income tax expense premise in excess shares can be determined by summing back the unused tax premise of 480 offers reclaimed to the premise of her leftover offers 1920.
unused tax premise of 480 shares = 480 × $7900 = $37,92,000
premises of the remaining shares = 1920 × $7900 = $1,51,68,000
In the remaining shares, WIlma income tax = $37,92,000 + $1,51,68,000
= $1,89,60,000
c)
Flintstone will make the decrease in its E&P by a measure of profit perceived by Wilma =$1,47,36,000
Audited Balance 10/31/2018 Preliminary Balance 10/31/2019
Sales* $56,038,100 $61,641,910
Executive salaries 544,881 583,956
Factory hourly payroll 10,402,954 11,697,055
Factory supervisors' salaries 659,285 770,600
Office salaries 1,948,821 2,694,881
Sales commissions 2,950,799 2,829,500
Sales have increased 10% over prior year. 3% percent of that is due to an increase in the average selling price. The remaining 7% is attributed to an increase in the number of units sold.
Required:
Journalize the entries.
Answer:
Accounts Receivable (Dr.) $61,641,910
Sales (Cr.) $61,641,910
Executive Salaries Expense (Dr.) $58,956
Executive Salaries Payable (Cr.) $58,956
Hourly Payroll Expense (Dr.) $11,697,055
Hourly Payroll Payable (Cr.) $11,697,055
Factory Supervisor Salaries Expense (Dr.) $770,600
Factory Supervisor Salaries Payable (Cr.) $770,600
Office Salaries Expense (Dr.) $58,956
Office Salaries Payable (Cr.) $58,956
Sales Commission (Dr.) $2,829,500
Cash (Cr.) $2,829,500
Explanation:
The sales rise is 10% due to out of which 3% is due to rise in selling price and the rest 7% rise is due to number of units sold.
The 3% rise accounts for $1,681,143 and the 7% increase is $3,922,667.
The Lumbar Chair Company manufacturers a standard recliner. During February, the firm's Assembly Department started production of 140,000 chairs. During the month, the firm completed 180,000 chairs and transferred them to the Finishing Department. The Assembly Department ended the month with 25,000 chairs in process. All direct materials costs are added at the beginning of the production cycle. Conversion costs are incurred uniformly over the production cycle. Weighted-average costing is used by Lumbar. How many of the chairs that were started were also completed during February
Answer:
115,000 chairs
Explanation:
Calculation to determine How many of the chairs that were started were also completed during February
Using this formula
Chairs started and Completed=Beginning chairs production-Ending chairs production
Let plug in the formula
Chairs started and Completed=140,000 chairs- 25,000 chairs
Chairs started and Completed= 115,000 chairs
Therefore The numbers of chairs that were started and were also completed during February will be 115,000 chairs
The Sandeep Company's April 30 pre-reconciliation cash balance on its books was $35,000. While preparing the April 30 bank reconciliation, Sandeep determined that outstanding checks total $11,000, deposits in transit total $7,000, and bank service charges are $50. Assuming there are no other reconciling items, what was Sandeep's April 30 cash balance per the bank statement
Answer: $38,950
Explanation:
The bank balance and the book cash balance might often be different for different reasons, one of which is due to the transactions recorded in the books not having been processed by the banks amongst others.
The books and bank balance will therefore need to be reconciled.
Balance per bank statement = Cash balance in books + Outstanding checks - Deposits in transit - Bank charges
= 35,000 + 11,000 - 7,000 - 50
= $38,950
Leo Manufacturing Company uses the FIFO method in its process costing system. The first processing department, the Soldering Department, started the month with 32,000 units in its beginning work-in-process inventory that were 70% complete with respect to conversion costs. The conversion cost in this beginning work-in-process inventory was $116,150. An additional 84,500 units were started into production during the month. There were 38,000 units in the ending work-in-process inventory of the Soldering Department that were 80% complete with respect to conversion costs. A total of $580,125 in conversion costs were incurred in the department during the month. What would be the cost per equivalent unit for conversion costs?
Answer:
$6.71 per unit
Explanation:
The computation of the cost per equivalent unit for conversion costs is shown below:
As we know that
Cost per equivalent unit for conversion costs is
= Total conversion cost in the month ÷ Equivalent Units of Production
where,
Equivalent units of Production is
= (Beginning Inventory × Percentage completed in the month) + [(Units started in the month - Ending Inventory) × 100%] + (Ending Inventory × percentage completed in the month)
= (32,000 × 30%) + [(84,500 - 38,000) × 100%] + (38,000 × 80%)
= 86,500 units
Now the cost per equivalent unit for conversion cost is
= $580,125 ÷ 86,500 units
= $6.71 per unit
Information related to Whispering Winds Corp. is presented below.
1. On April 5, purchased merchandise on account from Martinez Company for $27,200, terms 2/10, net/30, FOB shipping point.
2. On April 6, paid freight costs of $900 on merchandise purchased from Martinez.
3. On April 7, purchased equipment on account for $29,100.
4. On April 8, returned $3,400 of merchandise to Martinez Company.
5. On April 15, paid the amount due to Martinez Company in full.
Prepare the journal entries to record these transactions on the books of Kerber Co. under a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
No.
Date Account Titles and Explanation Debit Credit
1. April 5April 6April 7April 8April 15
2. April 5April 6April 7April 8April 15
3. April 5April 6April 7April 8April 15
4. April 5April 6April 7April 8April 15
5. April 5April 6April 7April 8April 15
Answer:
April 5
Dr Inventory $27,200
Cr accounts payable $27,200
April 6
Dr Inventory $900
Cr Cash $900
April 7
Dr Equipment $29,100
Cr Accounts payable $29,100
April 8
Dr Accounts payable $3,400
Cr Inventory $3,400
April 15
Dr Accounts payable $23,800
Cr Cash $23,324
Cr Inventory $476
Explanation:
Preparation of the journal entries to record these transactions on the books of Kerber Co. under a perpetual inventory system
April 5
Dr Inventory $27,200
Cr accounts payable $27,200
April 6
Dr Inventory $900
Cr Cash $900
April 7
Dr Equipment $29,100
Cr Accounts payable $29,100
April 8
Dr Accounts payable $3,400
Cr Inventory $3,400
April 15
Dr Accounts payable $23,800
($27,200-$3,400)
Cr Cash $23,324
($23,800-$476)
Cr Inventory $476
(2%*$23,800)
Spiess Corporation has two major business segments--Apparel and Accessories. Data concerning those segments for December appear below: Sales revenues, Apparel $ 775,000 Variable expenses, Apparel $ 314,000 Traceable fixed expenses, Apparel $ 201,000 Sales revenues, Accessories $ 799,000 Variable expenses, Accessories $ 425,000 Traceable fixed expenses, Accessories $ 128,000 Common fixed expenses totaled $401,000 and were allocated as follows: $172,000 to the Apparel business segment and $229,000 to the Accessories business segment. Required: Prepare a segmented income statement in the contribution format for the company.
Answer:
Spiess Corporation
The segmented income statement in the contribution format for December:
Apparel Accessories Total
Sales revenues, $ 775,000 $ 799,000 $1,574,000
Variable expenses, 314,000 425,000 739,000
Contribution margin $461,000 $374,000 $835,000
Traceable fixed expenses, 201,000 128,000 329,000
Common fixed expenses 172,000 229,000 401,000
Total expenses $373,000 $357,000 $730,000
Net income $88,000 $17,000 $105,000
Explanation:
a) Data and Calculations:
Apparel Accessories
Sales revenues, $ 775,000 $ 799,000
Variable expenses, 314,000 425,000
Traceable fixed expenses, 201,000 128,000
Common fixed expenses 172,000 229,000
b)Spiess' segmented income statement presents the revenues and costs according to the business segments to enable the managers understand how their specific segments are performing vis-a-vis others in Spiess Corporation. It serves as a managerial tool for business insights.
On April 1, Townsley Company sold merchandise with a selling price of $10,000 on account to Trout Company, with terms 3/10, n/30. On April 5, Trout Company returned merchandise with a selling price of $1,000. Trout Company paid the amount due on April 9. What journal entry did Townsley Company prepare on April 9 assuming the gross method is used
Answer and Explanation:
The journal entry is shown below:
Cash $8,730
Sales Discount ($9,000 × 3%) $270
To Accounts receivable $9,000 ($10,000 - $1,000)
Here cash and sales discount is debited as it increased the assets and discount while on the other hand the account receivable should be credited as it reduced the assets