Case 4-1 Pc Depot

1- The total unit cost = Total Variable Cost + Production Fixed Expenses + Advertising Expense + Selling and Administrative Expense = 3.23 + 1.20 + 0.30 + 0.19 = 4.92.

6. Note 8 states Harnischfeger’s allowance for doubtful accounts. Compute the ratio of the allowance to gross receivables (receivables before the allowance) in 1983 and 1984. What would the allowance have been if the company maintained the ratio at the 1983 level? How much did the pre-tax income increase as a result of the changed ratio in 1984?

a. Expenses associated with Jeremy’s store include $40,000 in salary (and employment taxes) to employees, $45,000 of cost of goods sold, and $18,000 in rent and other administrative expenses.

Student Analysis December 3 Discovered that a $84.40 journal entry for advertising printing charges had been recorded in error to the Miscellaneous Expense account rather than the Advertising Expense account. The date of the original cash transaction entry is December 2 and the invoice number is 23339. Follow instructions 1-5 below: The entry correction procedure for the Rebel Ridge Snowmobile accounting system requires that each error entry be backed out and then reentered correctly. 1. Using the December 2 date, debit the Cash (101) account and credit the Miscellaneous Expense (629) account for the $84.40. Click on the Verify Journal button. 2.

Of the total sales indicated, only 10 percent were expected to be for cash. Collections on the remainder were anticipated generally within 60 days of sale. In particular, recent experience had suggested that roughly one-half of credit sales were collected for during the month following the month of sale and that other one-half during the next subsequent month. Mr. Firr intended to use this pattern as the basis for his calculations.

4. For the most recent year, what is the amount of cost of goods sold in the

The standard costs and variances for direct materials, direct labor, and factory overhead for the month of May are as follows:

Account/Description Manufacturing overhead Cost of goods sold Actual overhead costs Incurred on account Indirect materials Indirect labor Depreciation $120,000 14,000 20,000 8,000 $162,000 Applied overhead costs Job 7640 Job 7641 Job 7642 $43,200 57,600 66,000 $166,800 $162,000 166,800 $4,800

ACC 201 (Principles of Financial Accounting) Complete Class All Discussion Questions , Chapters Problems and Assignments

If, at year end, 2 months have elapsed, what adjusting entry do you record? 2,000 A. Prepaid Legal Expense Legal Expense 2,000 2,000 B. Legal Expense Prepaid Legal Expense 2,000 Legal Expense 3,000 C. Prepaid Legal Expense 3,000 12,000 D. Prepaid Legal Expense Cash 12,000 [10]BASIC BANK10 - COAE 010 On September 1, your firm incurs a routine $82 expense, mistakenly recording it as follows: Office Expense Accounts Payable 28 28

b. The inventory write down recorded, as an expense by the company is $4.4 million. It is measured at lower of cost and net realizable value. Cost is measured by weighted average using standard cost method or

b. Trace the line item “Balance per Bank Statement” – Accuracy and Existence (AU-C 315.A114 a-iii, b-i)

11. Accounts receivable turnover and days sales in accounts receivable for the last three years:

Milligan’s Backyard Storage Kits, a mail order company, sells a variety of backyard storage unit kits and landscaping decorations to its customers. Although the company makes a profit, David Milligan, the company’s owner, realizes that he can improve his company’s operations if he better manages his inventory. Mr. Milligan requests your help in preparing an Inventory Analysis worksheet. The Inventory Analysis worksheet provides Mr. Milligan with information about his annual sales, cost of goods sold, gross profit, and markup on this products. Preparing the worksheet for Mr. Milligan requires you to insert columns, use several functions, and apply proper formatting to the

Received $800 from a customer in partial payment of his account receivable which arose as a result of sales during June.