Module 5 Algorithmic Gold Run Snowmobile
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Algorithmic Gold Run Snowmobile – Module 5 Copyright © 2012 – 2020 PKL Software, Incorporated. All rights reserved. Last Revised: September 2020 Page 1 Algorithmic Gold Run Snowmobile 1
st Algorithmic Edition Adjusting Entries and Closing Entries for the Quarter Ended December 31 and the Final Project Evaluation
Algorithmic Gold Run Snowmobile – Module 5 Copyright © 2012 – 2020 PKL Software, Incorporated. All rights reserved. Last Revised: September 2020 Page 2 ADJUSTING ENTRIES FOR THE QUARTER Using a copy of the December 31 Unadjusted Trial Balance (printed after the bank reconciliation entries) as well as the information and financial data shown below, record the adjusting entries for Gold Run Snowmobile, Inc. Be sure to click on the Adjusting JE button
on the tool bar. Adjusting entries must not
be entered using the Daily JE option.
Any corrections to adjusting entries must also be entered using the Adjusting JE option
. Adjusting entries will not
require documentation entries. Where necessary in the calculations, round all totals to the nearest cent. ALL ENTRIES MUST BE RECORDED AS OF DECEMBER 31, THE END OF THE FOURTH QUARTER!
A.
The credit card fees charges on the balance of Accounts Receivable, Credit Card Company is
2% of the December 31 account balance. This accrual entry will decrease the Accounts Receivable, Credit Card Companies account (
be sure to round to the nearest cent
) and correctly state the credit card expense for the quarter. B.
Eighty percent (
80%
) of the December 31 balance of the Store and Shop Supplies account has been consumed. C. Twenty percent (
20%
) of the balance of the Advertising Expense account represents prepaid adverting for the next accounting period. D.
All of the balance of Prepaid Property Tax account is an expense
for this quarter ended December 31. E. The quarterly adjusting entry for the beginning balance
of Prepaid Insurance is $1,320.00.
The purchase of the insurance policy on December 26 is for insurance coverage that begins January 1 of the following accounting period. F. Wages accrued total 12 hours
worked at $9.50 per hour
. G. Straight-line depreciation of the store equipment is $2,125 for the quarter. H. Depreciation of the shop equipment is $860 for the quarter
.
Algorithmic Gold Run Snowmobile – Module 5 Copyright © 2012 – 2020 PKL Software, Incorporated. All rights reserved. Last Revised: September 2020 Page 3 I. Gold Run Snowmobile, Inc. has three trucks. The new truck acquired on December 22 will not be depreciated this quarter. One of the trucks is fully depreciated. The third truck was acquired at a cost of $20,000.00
, with a salvage value of $6,000.00
, is depreciated on a miles driven basis (
units of production
depreciation
), and has an estimated service life of 100,000 miles
. The truck was driven 3,200 miles
during the fourth quarter. J. Accrue the interest on the three short-term notes receivable
. Calculate the interest on each note to the nearest cent. Use the 360-day banker's year for all interest computations
. Interest receivable has not been accrued on any of the notes. Make a single journal entry for the total accrued interest receivable on the three notes.
Note One:
$4,600.00, 8%, 90-day note, dated November 16. Note Two: $10,000.00, 14%, 90-day note, dated December 23 Note Three: $25,000, 12%, 60-day note, dated December 28
K. Record the interest expense on the short-term notes payable
.
Interest expense has not been accrued on any of the notes. Record the interest expense for each note separately. Note One
: On November 16, $2,000.00
was borrowed for 90 days
at 9%
interest. Note Two:
On December 26, $30,000.00
was borrowed for 60 days
on a discounted basis
(discount rate 12.0%
) and $600.00
was debited to the Discount on Notes Payable account. Record the five days of accrued interest on this note payable. The Discount on Notes Payable account will be credited for this adjusting entry.
L. Eighty percent (
80%
) of the balance of the Unearned Storage Fees has been earned this quarter. M. Additional income taxes expense for the period total $2,052.00
. N. Based on an aging of the accounts receivable, the estimated total of uncollectible accounts for the quarter is expected to be $1,865.00.
Reminder: Gold Run Snowmobile uses the “allowance method” for recording expected losses from uncollectible accounts.
Algorithmic Gold Run Snowmobile – Module 5 Copyright © 2012 – 2020 PKL Software, Incorporated. All rights reserved. Last Revised: September 2020 Page 4 In the past, Gold Run Snowmobile has experienced small shortages (shrinkage) in merchandise inventory when the perpetual inventory total maintained on the computerized accounting system was compared to the actual physical inventory count taken at the end of the accounting period. When this shrinkage occurred, the Cost of Goods Sold account was debited and the Merchandise Inventory account was credited for the total value of the inventory shortage. The entry was followed by an update of the specific merchandise items where the quantities were not correct. At the end of the current quarter the physical count of merchandise on hand matches the perpetual inventory for each item in stock. As a result of the satisfactory inventory control system that is in place, no losses have occurred and no adjusting entry for inventory shrinkage is required for this quarter. ______________________________________________________________________________ End of Module Procedures Now that you have completed entering the adjusting entries for the quarter it is time to check the accuracy of your work. 1. Move the pointer to Check Figures in the Menu Bar, move down to Weekly Check Figures ,and click. 2. Select the After Adjustments check figures and print them. 3. Move the pointer to Journal/Ledgers/Statements, move down to General Ledger, and click. 4. Print a copy of the Adjusted Trial Balance for December 31. 5. Move the pointer to Journal/Ledgers/Statements, move down to Subsidiary Ledgers, move to Accounts Receivable Ledger, and click. 6. Print a copy of the Schedule of Accounts Receivable. 7. Move the pointer to Journal/Ledgers/Statements, move down to Subsidiary Ledgers, move to Accounts Payable Ledger and click. 8. Print a copy of the Schedule of Accounts Payable. 9. Move the pointer to Journal/Ledgers/Statements, move down to General Journal, and click. 10. Print a copy of the General Journal for Adjusting Entries.
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O c. Finished Goods to be understated by OMR 12,000
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The last department in a production process shows the following information at the end of the period:
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Started into Production
PLUS
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263000
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How many units have been transferred out to finished goods during the period?
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O 263000.
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Cost Data: Bonding Department
Direct materials costs in beginning inventory, September 1
Conversion costs in beginning inventory, September 1
Direct materials costs incurred in September
Conversion costs incurred in September
Physical Units: Bonding Department
Units in process, September 1
Units transferred out during September
Units in process, September 30
Percentages of Completion: Bonding Department
Direct materials, September 1
Conversion, September
Direct materials, September 30
Conversion, September 30
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Direct
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costs The following data is available
Month
Vehicle working hours
Maintenance costs (N$)
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8 500
35 867
tion
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8 000
34 400
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8 800
36 747
April
9 200
37 921
May
9 458
38 678
June
8 200
34 987
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36 439
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38 252
September
9 983
40 218
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The Slicing Department production process shows:
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Eussions
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Ending Work in Process
9800
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aborations
Total units to be accounted for 180500
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O 180500.
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Note: This section is a continuation from Part A of the comprehensive problem. Be sure you have completed Part A before attempting Part B. You may have to refer back to data presented in Part A and use answers from Part A when completing this section.
Genuine Spice Inc. began operations on January 1 of the current year. The company produces eight- ounce bottles of hand and body lotion called Eternal Beauty. The lotion is sold wholesale in 12-bottle cases for $100 per case. There is a selling commission of $20 per case. The January direct materials, direct labor, and factory overhead costs are as follows:
DIRECT MATERIALS
Cost Behavior
Units per Case
Cost per Unit
Direct Materials Cost per Case
Cream base
Variable
100 ozs.
$0.02
$2.00
Natural oils
Variable
30 ozs.
0.30
9.00
Bottle (8-oz.)
Variable
12 bottles
0.50
6.00
$17.00
DIRECT LABOR
Department
Cost Behavior
Time per Case
Labor Rate per Hour
Direct…
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the ending work in process that were 30% complete. During July, $174600 materials costs and $152660 conversion costs were charged
to the department.
beginning work in process; 39200 units were completed and transferred out; and there were 19000 units in
The unit production costs for materials and conversion costs for July were
Conversion Costs
Materials
$2.62
$3.89
$3.40
$3.00
$3.89
$4.45
$2.62
$3.00
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Pocono Cement Forms expects $1,120,000 in overhead during the next year. It does not know whether it should apply overhead on the basis of its anticipated direct labor hours of 70,000 or its expected machine hours of 35,000.
Determine the product cost under each predetermined allocation rate if the last job incurred $1,550 in direct material cost, 78 direct labor hours, and 65 machine hours. Wages are paid at $14 per hour.
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Machine hours
Cost of the job
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Jason Rogers works full-time for UPS and runs a lawn-mowing service part-time after work during the warm months of April through October. Jason has four men working with him, each of whom is paid $5.00 per lawn mowing. Jason has 27 residential customers who contract with him for once-weekly lawn mowing during the months of May through September, and twice-per-month mowings during April and October. On average, Jason charges $50 per lawn mowed. Recently, LStar Property Management Services asked Jason to mow the lawn at each of its 30 rental houses every two weeks during the months of May through September. LStar has offered to pay $30 per lawn mowing, and would forego the lawn edging that normally takes Jason’s team about half of its regular mowing time. If Jason accepts the job, he can assign a three-man team to mow the rental house yards, and will have to buy an additional power lawn mower for about $375…
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Note: This section is a continuation from Parts A and B of the comprehensive problem. Be sure you have completed Parts A and B before attempting Part C. You may have to refer back to data presented in Parts A and B as well as use answers from those parts when completing this section.
Genuine Spice Inc. began operations on January 1 of the current year. The company produces 8-ounce bottles of hand and body lotion called Eternal Beauty. The lotion is sold wholesale in 12-bottle cases for $100 per case. There is a selling commission of $20 per case. The January direct materials, direct labor, and factory overhead costs are as follows:
DIRECT MATERIALS
Cost Behavior
Units per Case
Cost per Unit
Direct Materials Cost per Case
Cream base
Variable
100 ozs.
$0.02
$2.00
Natural oils
Variable
30 ozs.
0.30
9.00
Bottle (8-oz.)
Variable
12 bottles
0.50
6.00
$17.00
DIRECT LABOR
Department
Cost Behavior
Time per Case…
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Manufacturing overhead was estimated to be OMR 400,000 for the year
along with estimated 20,000 direct labor hours. Actual manufacturing
overhead was OMR 415,000, and actual labor hours were 21,000. The
amount credited to the Manufacturing Overhead account would be:
O a.
OMR 415,000.
b. OMR 435,750.
O c.
None of the given answer is correct
Od. OMR 420,000.
e. OMR 400,000.
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Materials issued for the current month are as follows:
Requisition No.
Material
Job No.
Amount
103
Plastic
400
$29,220
104
Steel
402
38,530
105
Glue
Indirect
2,120
106
Rubber
403
3,670
107
Titanium
404
88,690
Journalize the entry to record the issuance of materials. If an amount box does not require an entry, leave it blank.
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Snow Mountain Equipment has 24 employees distributed among the following departments:
Sales: 5
Factory: 12
Administration: 7
The total annual payroll for Snow Mountain Equipment is $900,000.
Problem 6-13A (Algo)
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Compute the labor distribution based on an equal distribution among the departments.
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Comprehensive Problem 5Part B:
Note: This section is a continuation from Part A of the comprehensive problem. Be sure you have completed Part A before attempting Part B. You may have to refer back to data presented in Part A and use answers from Part A when completing this section.
Genuine Spice Inc. began operations on January 1 of the current year. The company produces eight- ounce bottles of hand and body lotion called Eternal Beauty. The lotion is sold wholesale in 12-bottle cases for $100 per case. There is a selling commission of $20 per case. The January direct materials, direct labor, and factory overhead costs are as follows:
DIRECT MATERIALS
CostBehavior
Unitsper Case
Costper Unit
Direct MaterialsCost per Case
Cream base
Variable
100 ozs.
$0.02
$2.00
Natural oils
Variable
30 ozs.
0.30
9.00
Bottle (8-oz.)
Variable
12 bottles
0.50
6.00
$17.00
DIRECT LABOR
Department
CostBehavior
Timeper Case
Labor Rateper Hour
Direct LaborCost…
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Concord Company decided to analyze certain costs for June of the current year. Units started into production equaled 27000 and ending
work in process equaled 3500 units. With no
work in process was 20% complete and total conversion costs equaled $135520?
beginning work in process inventory, how much is the conversion cost per unit if ending
O $4.44.
O $2.80.
O $5.60.
O $5.02.
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A department adds all raw materials to a process at the beginning of the process and incurs conversion costs uniformly throughout the
process. For the month of January, there were no units in the beginning work in process inventory; 89700 units were started into
production in January; and there were 19400 units that were 35% complete in the ending work in process inventory at the end of
January. What were the equivalent units of production for conversion costs for the month of January?
O 89700 equivalent units.
O 82910 equivalent units.
O 70300 equivalent units.
O 77090 equivalent units.
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Exercise 22-04
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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
4.
10,180
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
Year
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The following events took place for Technology Treasures Manufacturing Company during January, the first month of its operations as a produ
digital video monitors:
a. Purchased $138,600 of materials.
b. Used $93,540 of direct materials in production.
c. Incurred $182,560 of direct labor wages.
d. Incurred $213,040 of factory overhead.
e. Transferred $426,220 of work in process to finished goods.
f. Sold goods for $660,000.
g. Sold goods with a cost of $367,500.
h. Incurred $86,200 of selling expense.
i. Incurred $70,250 of administrative expense.
Required:
Using the information given, complete the following:
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Bright Night, Inc., manufactures light bulbs. Its purchasing policy requires that the purchasing agents place each quarter’s purchasing requirements out for bid. This is because the Purchasing Department is evaluated solely by its ability to get the lowest purchase prices. The lowest bidder receives the order for the next quarter (90 working days).
To make its bulb products, Bright Night requires 57,600 pounds of glass per quarter. Bright Night received two glass bids for the third quarter, as follows:
Central Glass Company: $28.00 per pound of glass. Delivery schedule: 57,600 (640 lbs. x 90 days) pounds at the beginning of July to last for 3 months.
Ithaca Glass Company: $28.15 per pound of glass. Delivery schedule: 640 pounds per working day (90 days in the quarter).
Bright Night accepted Central Glass Company’s bid because it was the low-cost bid.
Considering only inventory financing costs, what is the additional cost per pound…
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Entry for Issuing Materials
Materials issued for the current month are as follows:
Requisition No.
Material
Job No.
Amount
201
Aluminum
500
$85,480
202
Plastic
503
27,460
203
Rubber
504
3,520
204
Glue
Indirect
2,280
205
Steel
510
36,420
Journalize the entry to record the issuance of materials.
For a compound transaction, if an amount box does not require an entry, leave it blank.
fill in the blank 2
fill in the blank 3
fill in the blank 5
fill in the blank 6
fill in the blank 8
fill in the blank 9
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O capital expenditure.
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debited to premises account.,
O credited to profit and loss account.
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Courses / COST ACCOUNTING Section3 Lecture (20201 020113101 AAUP - JENIN)/ 23 February-1 Ma
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The following infiormation pertains to a manufacturing company which uses weighted
average method: Work in process, beginning direct materials $550,000 and conversion
$450,000, Costs added in current period, direct materials $650,000 and conversion S750,000
cost per equivaient unit, direct materials $200 and conversion $300. Using weighted average
method, the equlvalent units of materials is
Oa 8000 units
b.6000 units
OC4500 units
d.5333 units
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- https://elearn.squ.edu.om/mod/quiz/attempt.php?attempt3D1764 EMIC) E-LEARNING SERVICES - SQU LIBRARIES SQU PORTAL ATTEND Time left 1:56:15 O c. Finished Goods to be understated by OMR 12,000 the year. O d. Cost of Goods Manufactured to be overstated by OMR 12,000 for the year. Work in Process to be understated by OMR 12,000 at year end. A Company uses job order costing and has chosen direct labor hours to allocate its manufacturing overhead. The company estimates that total direct labor hours to be operated next year are 300,000 hours. The estimated variable overhead is $10 per hour and the estimated fixed overhead costs are $500,000. The predetermined overhead rate is: O a. None of the answers given O b. S16.67 Oc. $11.67 O d. $7 O e. $1.67 OUS PAGE NEXT PAGEarrow_forwardb My Questions bartleby + References X Camden County College Chapter 3 Quiz College Ha http://camdenccinstructure.com/courses/3788/assignments/359677module item_id-88693 -04:00) Question 8 --/1 View Policies nents Current Attempt in Progress A process began the month with 3400 units in the beginning work in process inventory and ended the month with 1900 units in the ending work in process. If 23300 units were completed and transferred out of the process during the month, how many units were started into production during the month? es ions O 21800. al O 24800. O 21400. O 23300. eTextbook and Media Attempts: 0 of 1 used Save for Later Submit Answer < Prev Next arch 10:50 AM AR 4 10/4/2019 hp f4 f5 f6 IOI f8 f f12 ins prt sc delete home end & + 6 7 O num backspace lock } T Y 00 96arrow_forwardMy Questions | bartleby b References X Chapter 3 Quiz CCamden County College ounty College Ha Ahttps://camdencc.instructure.com/courses/3788/assignments/35967?module item id=88693 les Question 7 s View Policies uncements Current Attempt in Progress ssions The last department in a production process shows the following information at the end of the period: rences borations Units Beginning Work in Process 25000 Started into Production PLUS ort 263000 Ending Work in Process 49200 Central How many units have been transferred out to finished goods during the period? 288000. O 263000. O312200. O 238000. eTextbook and Media e to search hparrow_forward
- royalty-free image X A Login Homework i X https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducati... A Question 11 - Ch 17-18 Homew X Cost Data: Bonding Department Direct materials costs in beginning inventory, September 1 Conversion costs in beginning inventory, September 1 Direct materials costs incurred in September Conversion costs incurred in September Physical Units: Bonding Department Units in process, September 1 Units transferred out during September Units in process, September 30 Percentages of Completion: Bonding Department Direct materials, September 1 Conversion, September Direct materials, September 30 Conversion, September 30 Cost per equivalent unit Direct Materials Required information [The following information applies to the questions displayed below.] Lavalear Corporation uses a process costing system and traces costs through several processing departments, starting with the Bonding Department.…arrow_forwardPlease do not give solution in image format thankuarrow_forwardearch - Bing E-leaming Portal Namibia Unive X SUPPLEMENTARY ASSESSMENT X Ô https://elearning.nust.na/elearn/mod/quiz/attempt.php?attempt3D1039817&cmid%3D261006&page3D21 DANIE The manager of a local lodge uses the high-low technique to separate fixed and variable maintenance costs The following data is available Month Vehicle working hours Maintenance costs (N$) January 8 500 35 867 tion February 8 000 34 400 March 8 800 36 747 April 9 200 37 921 May 9 458 38 678 June 8 200 34 987 July 8 695 36 439 August 9 313 38 252 September 9 983 40 218 Calculate the variable cost per hour (answer to the nearest NS) Answer. Type here to searcharrow_forward
- about:blank Blackboard Learn sc.edu/webapps/assessment/take/launch isp?course assessment_id=_114 Remaining Time: 1 hour, 23 minutes, 35 seconds. Question Completion Status: A Moving to the next question prevents changes to this answer. Question 1 What is the Payback Period for the following investment? Year 1 2 3 4 5 O a. 3.77 Ob. 3.73 Oc. 3.89 Od. 3.96 Cash Out $ (1,600,000) (710,000) Cash In 550,000 580,000 610,000 640,000 670,000 A Moving to the next question prevents changes to this answer. 000 900 F2 F3 F4 MacBookarrow_forwardRefere Relerenoes C Solved: Trek Comp Chapter 3 Quiz X Camden Couny C Coumty C https://camdenccinstructure.com/courses/3788/assignments/35967?module iterm id-88693 ne Question 5 tbook View Policies Jules Current Attempt in Progress des The Slicing Department production process shows: ouncements Eussions Units Beginning Work in Process Ending Work in Process 9800 ferences 50600 aborations Total units to be accounted for 180500 eyPLUS port How many units were started into production in the Slicing Department? Central O 190300. 129900. O 180500. o 170700. eTextbook and Media e to search hparrow_forwardComprehensive Problem 5 Part B: Note: This section is a continuation from Part A of the comprehensive problem. Be sure you have completed Part A before attempting Part B. You may have to refer back to data presented in Part A and use answers from Part A when completing this section. Genuine Spice Inc. began operations on January 1 of the current year. The company produces eight- ounce bottles of hand and body lotion called Eternal Beauty. The lotion is sold wholesale in 12-bottle cases for $100 per case. There is a selling commission of $20 per case. The January direct materials, direct labor, and factory overhead costs are as follows: DIRECT MATERIALS Cost Behavior Units per Case Cost per Unit Direct Materials Cost per Case Cream base Variable 100 ozs. $0.02 $2.00 Natural oils Variable 30 ozs. 0.30 9.00 Bottle (8-oz.) Variable 12 bottles 0.50 6.00 $17.00 DIRECT LABOR Department Cost Behavior Time per Case Labor Rate per Hour Direct…arrow_forward
- Owearrow_forwardamden County College References Chapter 3 Quiz b My Questions | bartleby instructure.com/courses/3788/assignments/35967?moduleitem id-88693 View Policies Current Attempt in Progress A department adds materials at the beginning of the process and incurs conversion costs uniformly throughout the process. For the month of July, there was no the ending work in process that were 30% complete. During July, $174600 materials costs and $152660 conversion costs were charged to the department. beginning work in process; 39200 units were completed and transferred out; and there were 19000 units in The unit production costs for materials and conversion costs for July were Conversion Costs Materials $2.62 $3.89 $3.40 $3.00 $3.89 $4.45 $2.62 $3.00 eTextbook and Media 10:51 A A 4 10/4/2 ip en ins home f12 delete no l prt sc f9 f8 f7 f6 Xarrow_forwarddon't give answer in image formatarrow_forward
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- Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:9781337679503
Author:Gilbertson
Publisher:Cengage