Unit 3 Test_ ECO 102
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Unit 3 Test: Felisha McEachern
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Unit 3 Test
Felisha McEachern submitted Jan 26 at 3pm
Unit 3 Test Due
Jan 28 at 11:59pm
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Question 1
______________ include all of the costs of production that increase with the quantity
produced.
Fixed costs
Variable costs
Correct!
Correct!
2/13/24, 2:30 PM
Unit 3 Test: Felisha McEachern
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1. From the following Trial balance , you are require to prepare the final accounts for the year ended 31st December 2020.
Grades
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Amount (Dr)
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4,80,000
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Your first internship assignment is to prepare two schedules for Windsor Blue Co., a manufacturing company. You have a file that
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Concord Industries has equivalent units of 7100 for materials and for conversion costs. Total manufacturing costs are $124370. Total
materials costs are $91000. How much is the conversion cost per unit?
O $17.52.
O $4.70.
$12.82.
O $30.33
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Turney Company produces and sells automobile batteries, the heavy-duty HD-240. The 2020 sales forecast is as follows.
Quarter
HD-240
5,200
2.
7,220
3.
8,280
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The January 1, 2020, inventory of HD-240 is 2,080 units. Management desires an ending inventory each quarter equal to 40% of the next quarter's sales. Sales in the first quarter of 2021 are expect
be 25% higher than sales in the same quarter in 2020.
Prepare quarterly production budgets for each quarter and in total for 2020.
TURNEY COMPANY
Production Budget
Product HD-240
Quarter
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A process with no beginning work in process, completed and transferred out 85200 units during a period and had 50100 units in the
ending work in process inventory that were 20% complete. The equivalent units of production for the period for conversion costs were:
O 95220 equivalent units.
O 135300 equivalent units.
O 70200 equivalent units.
O 85200 equivalent units.
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Bravo Wire Enterprises is a manufacturer of electrical conductors. The following incomplete subsidiary ledger is for wire cable during July:
a. Complete the materials issuances and balances for the wire cable subsidiary ledger. Assume a first-in, first-out cost flow.
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Quantity
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Unit Price
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309
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$7.00
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July 5
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$750
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422
400
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Anand Kalaimani Al Harthi SAOG located in Muscat Sultanate of Oman involved in manufacturing of
Drugs and Pharmaceutical Industry from 1981 to till now. The SAOG Company has provided the
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Postage
Electrical
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Expense
10,000
6,000
350
1,200
1,000
5,000
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12,500
7,500
550
2,400
2,000
6,000
November
13,600
8,200
850
3,600
3,000
5,500
December
19,400
9,000
950
4,800
4,000
3,200
Additional information:
a) Cash Balance on 1/10/2023 is RO X000000
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Question 5 of 7
(a1)
$2,120
49,100
21,300
34.490
Notes payable (long-term)
62,200
Cash
Accounts receivable
Accumulated depreciation-equipment
4,030 D. Pharoah, drawings
Depreciation expense
8,800 D. Pharoah, capital (beginning of the year)
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$1,720
13,000
9,700
6,050
2,980
3,950
Prepare an income statement for the year. (Enter negative amounts using either a negative sign preceding
parentheses e.g. (45).)
49,600
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Manufacturing cost data for Orlando Company, which uses a job order cost system, are presented below.
Indicate the missing amount for each letter. Assume that in alltases manufacturing overhead is applied on the basis of direct labor
cost and the rate is the same. (Round overhead rate to 2 decimal places, eg. 15.25 and final answers to 0 decimal places, eg. 5,275.)
Case A
Case B
Direct materials used
2$
(a)
$86,500
Direct labor
56,000
142,700
Manufacturing overhead applied
42,000
(d)
Total manufacturing costs
149,750
(e)
Work in process 1/1/20
(b)
25,200
Total cost of work in process
207,500
(f)
Work in process 12/31/20
(c)
13,800
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Calculate the simple interest due (in dollars) on a 40-day loan of $1,600 if the annual interest rate is 9%. (Use 360 days in 1 year.)
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A building acquired at the beginning of the year at a cost of $1,193,000 has an estimated residual value of $220,000 and an estimated useful life of 40 years.
Determine the following.
a. The double-declining-balance rate
%
b. The double-declining-balance depreciation for the first year
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QUESTION 6
Logan Electrics Inc. has fixed operating costs of $370,000, variable costs of $1.75 per unit produced,
and its product sells for $3.00 per unit. What is the company's break-even point, i.e., at what unit sales
volume would income equal costs?
O 211,000 units
O 296,000 units
O 200,000 units
250,000 units
QUESTION 7
Last year Golden Corp. had $410 million in sales, and it had $95 million of fixed assets that were being operated at 8096
capacity. In millions, how large could sales have been if the company had operated at full capacity?
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Sheffield Corp. uses the percentage-of-receivables basis to record bad debt expense and concludes that 3% of accounts receivable will become
uncollectible. Accounts receivable are $430,800 at the end of the year, and the allowance for doubtful accounts has a credit balance of $2,864.
(a) Prepare the adjusting journal entry to record bad debt expense for the year.
(b) If the allowance for doubtful accounts had a debit balance of $887 instead of a credit balance of $2,864, prepare the adjusting journal entry for
bad debt expense.
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09 Operational and Legal Considerations -
>
Calculating Capacity
• How many machines do you need?
• You expect your sales to be
3,000,000 granola bars (20g each)
• How large is your plant?
per month
• How many workers do you need?
The machine:
• How much is the investment?
Capacity: 100 kgs per hour
• What are the operating costs?
Requires 2 people to operate it
Takes 8 ft x 40 ft space
• Cost per machine $15,000
Energy and maintenance: $5 per hour
• Cost of material and packaging:
$0.12 per bar
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weCS Virginia Community College Syst X
N CHAPTER 08 HW NOVA
learn.vccs.edu/courses/240149/assignments/4704240?module_item_id=17254910
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Cullumber Co. has the following transactions related to notes receivable during the last 2 months of the year. The company does not make entries to
accrue interest except at December 31.
r.com: 24/7 On-
Tutoring
Nov. 1 Loaned $53,400 cash to C. Bohr on a 12-month, 9% note.
ary Resources
Dec. 11 Sold goods to K. R. Pine, Inc., receiving a $5,400, 90-day, 8% note.
16 Received a $9,600, 180-day, 8% note to settle an open account from A. Murdock.
31 Accrued interest revenue on all notes receivable.
Journalize the transactions for Cullumber Co. (Omit cost of goods sold entries.) (Credit account titles are automatically indented when amount is entered.…
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