E1.5 (LO 2), C Gala Company is a manufacturer of laptop computers. Various costs and expenses associated with its operations follows. 1. Property taxes on the factory building. 2. Production superintendents' salaries. 3. Memory boards and chips used in assembling computers. 4. Depreciation on the factory equipment. 5. Salaries for quality control inspectors. 6. Sales commissions paid to sell laptop computers. 7. Electrical components used in assembling computers. 8. Wages of workers assembling laptop computers. 9. Soldering materials used on factory assembly lines. 10. Salaries for the night security guards for the factory building. The company intends to classify these costs and expenses into the following categories: (a) direct materials, (b) direct labor, (c) manufacturing overhead, and (d) period costs. Instructions List the items (1) through (10). For each item, indicate the cost category th which it belongs.
Q: Birtle Corporation reports the following statement of financial position Information for 2017 and…
A: Working Notes for calculation of common-size statement of financial position for BIrtle.
Q: R. L. Ybarra employs John Ince at a salary of $53,000 a year. Ybarra is subject to employer Social…
A: Cost of employment includes all expenses paid by employer. Payroll taxes also part of employment…
Q: Accounting Information System Prepare a step-by-step payment flowchart for a bookstore business,…
A: A payment flowchart is a visual representation of the steps involved in a payment process. It…
Q: In packages of its products, Rolex Company includes coupons that may be presented at retail stores…
A: Estimated Premium Liability The sum that the issuing firm anticipates paying out to merchants for…
Q: As of January 1, 20X2, the City Council approved and the mayor signed a budget calling for…
A: Fund-based accounting: An accounting system in which transfers of certain specific funds have been…
Q: Answer the following questions including all the formulas and calculations to arrive at financial…
A: Cash Budget for 10 months from March to December Particulars March April May June July August…
Q: On January 1, 2016, Crane Company issued 2000 of its 10%, $1,000 bonds for $2080000. These bonds…
A: The issuer of debt instruments such as callable bonds has the right to pay back the principal value…
Q: Vicksburg Laundry reported assets of $850 and equity of $520. What is Vicksburg's debt ratio? (Round…
A: Accounting Equation :— This equation shows how assets, liabilities and owner's equity are related to…
Q: During the month of July, the Town of Lynton recorded the following information related to…
A: Journal entry is used in accounting to record the business transactions in monetary terms . It…
Q: If Paige has accumulated $6000 by saving $110 every month for four years, what nominal annual rate…
A: Given, A = $6000 P = $110 n = 2 (compounded semi-annually) t = 4 (years) Now, Using the compound…
Q: reports goodwill
A: Goodwill represents a value that gives the acquiring company a competitive advantage. It’s…
Q: 4-a. Using the adjusted balances, prepare a statement of earnings. (Enter your answers in thousands…
A: Earnings per share measure the net income earned by the company per common share outstanding.
Q: The balance sheet of Adams Pharmacy after the revenue, expense, and partner’s drawing accounts have…
A: The process of retiring a partner involves several steps, including the revaluation of the…
Q: Prepare a multiple-step income statement.
A: Income statement represents the net income or net loss that is calculated by deducting the expenses…
Q: Your company is considering the purchase of a second-hand scanning microscope at a cost of $10,500,…
A: Depreciation :— It is the allocation of depreciable cost of asset over its useful life.…
Q: XYZ Ltd., experts a net income of $150,000. The company has 10% 500,000 debentures. The equity…
A: Overall Cost of Capital (Ko) = (Interest on Debt + Earnings available to equity shareholders)/ Value…
Q: Harold Hill borrowed $16,200 to pay for his child's education at Riverside Community College. Harold…
A: The question is based on the concept of Financial Management. Maturity value is the sum of the…
Q: Use (a) the percentage method and (b) the wage-bracket method to compute the federal income taxes to…
A: Withholding Taxes - Percentage method Taxes that are withheld from an employee's pay or compensation…
Q: Vera., a dealer of household appliances, sells washing machines at an average price of P8,100. The…
A: Warranty Liability: The expected cost of repair and maintenance of the sold items should be recorded…
Q: Forecast KMS's free cash flow, assuming KMS's market share will increase by 0.28% per year;…
A: Free cash flow is the money that is left over after a company pays its operating expenses and…
Q: Rate on Taxable Income 10% 12 22 24 32 35 37 www~~O Single Taxpayers Up to $9,950 $9,951-$40,525…
A: Tax liability refers to an amount on which tax is paid to the local or state government by an…
Q: Rebecky's Flowers 4U, Incorporated, had free cash flows during 2024 of $71 million, NOPAT of $122…
A: Balance Sheet: - A balance sheet is a statement of a company's assets, liabilities, and capital at a…
Q: On January 1, 2024, National Insulation Corporation (NIC) leased equipment from United Leasing under…
A: The asset's residual value expected at the end of the lease term is $0. The effective annual…
Q: On April 1, 2022, Guy Comeau and Amelie Lavoi formed a partnership in Ontario. Comeau $304,000 cash…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: These items are taken from the financial statements of Oriole Co. at December 31, 2022. Buildings…
A: The balance sheet is a summary of permanent accounts prepared at the end of the accounting period.…
Q: the context of auditing, what does "tracking" actually
A: In the auditing the audit trails is said to be the process that involved tracking data and verifying…
Q: Kennedy had a very busy 2022 as she graduated with a master in public health in May and began work…
A: Gross income that is earned by the company before deducting any amount of taxes and deductions. It…
Q: Manufacturing Company Balance Sheet Partial balance sheet data for Diesel Additives Company at…
A: Current assets are those assets that are realizable within a time period of one year. It includes…
Q: adux Candy Company's income statement for the year ended December 31, 2024, reported interest…
A: Interest Expenses = $21,000,000 Income tax expense = $11,000,000 Times interest earned ratio =…
Q: In Year 1, Lee Inc. billed its customers $56,200 for services performed. The company collected…
A: The accounting equation states that assets equal to sum of liabilities and equity. The transactions…
Q: The Balance Sheet at the beginning of the month shows Total Assets of $21,820 and during the month…
A: The balance sheet is a summary of permanent accounts prepared at the end of the accounting period.…
Q: The City of Rio Rancho adopted the following budget for the calendar year 2020: Revenues: Property…
A: a. General journal entry to record the budget: Debit: Property taxes $8,000,000 Debit: Miscellaneous…
Q: Question. Garcia Corporation purchased a truck by issuing an $80,000, 4-year, zero-interest-bearing…
A: INTRODUCTION: A journal, often known as the Book of Original Entry or the Day Book, is a book that…
Q: Drilling Company uses activity-based costing and provides this information: Driver Rate $ 0.80 52.00…
A: Activity Based Costing: Overhead and indirect costs are divided across related goods and services…
Q: The following are the cash book and bank statement of Jelita Enterprise for December 2022: Cash…
A: The bank reconciliation statement is prepared to adjust the bank balance and book balance for…
Q: how do you record line i
A: An accounting equation is a formula of accounting where it is proved that the total value of assets…
Q: Splish Windows manufactures and sells custom storm windows for enclosed porches. Splish also…
A: INTRODUCTION: Sales revenue and revenue are phrases that are sometimes used interchangeably.…
Q: (a) Pharoah Co. sold $2,080,000 of 12%, 10-year bonds at 102 on January 1, 2020. The bonds were…
A: An interest expense is the cost incurred by an entity for borrowed funds. Interest expense is a…
Q: 17. What is the rule on the taxability of income that a government educational institution derives…
A: Correct options:- b. Correct: Income derived by a government educational institution from its school…
Q: The manufacturing cost of Calico Industries for three months of the year are provided below: Total…
A: The amount of money spent by a company to create one unit of a marketable good is known as the cost…
Q: Ayayai Construction, Inc. experienced the following construction activity in 2021, the first year of…
A: INTRODUCTION: Balance sheets provide a fast overview of a company's financial position. A balance…
Q: On January 1, 2024, National Insulation Corporation (NIC) leased equipment from United Leasing under…
A: Finance lease refers to a contract made between lessor and lessee that allows to use the asset and…
Q: Use the following data to compute total factory overhead costs for the month: Sales commissions…
A: Factory overhead cost refers to production cost incurred in factory for the manufacture of goods but…
Q: Which of the below statements holds based on the empirical evidence? A.Leverage ratios are…
A: Answer:- Leverage ratio:- This ratio determines the split between debt and equity that a firm…
Q: leased restaurant equipment from Crescent Corporation under a nine-year lease agreement The lease…
A: Effects on earnings is based on Interest expense and amortization expense for the year. Balance in…
Q: Drill 1: Ogar Donut Store allocates its manufacturing overhead based on estimated direct labor…
A: Predetermined Overhead Rate :— It is the rate used to allocate manufacturing overhead to cost…
Q: The standard and actual cost data of Ali & Company are as follows; STANDARD ACTUAL Material 8,000 kg…
A: Journal entry is a primary entry that records the financial transactions initially. The transactions…
Q: Pharoah Company adopts acceptable accounting for its defined benefit pension plan on January 1,2…
A: The worksheet should include the following sections: Beginning Balances: This should include the…
Q: Oriole Company sells two types of soccer jerseys: Deluxe and Superior. The following table shows the…
A: Answer b) The portion of a product's sales revenue that is not used to cover variable costs and…
Q: Use the indirect method to prepare the operating activities section of Cruz’s statement of cash…
A: The cash flow from various activities during the period are reported under the cash flow statement.…
A manufacturing cost is nothing but the sum of the total costs incurred on making the product available to customers. There are several costs which are incurred in this process.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- E8.1 (LO 1, 2, 3), AP HoldOn! Co. produces magnetized clips that its customers use to hang items on their refrigerator doors. In its effort to manufacture these clips, HoldOn! incurred the following costs this year (amounts are in thousands). Cost Amount Product or Period Direct or Indirect Plastic material and springs for clips $320 CEO’s salary 110 Advertising 25 Research and development 15 Wages for factory workers 420 Utility costs in plant 67 Plant supervisor salaries 186 Depreciation of plant assets 54 Salaries and commissions to salespeople 205 Required Complete the above table by classifying each cost as either a product cost or a period cost; for product costs, further classify as a direct cost or an indirect cost. Calculate total direct costs and total indirect (MOH) costs. Assume HoldOn! used a budgeted MOH rate to apply MOH costs, and the total cost applied this year is $285,000. How much did the company under-…E6.15 (LO 4), AN Casas Modernas of Juarez, Mexico, is contemplating a major change in its cost structure. Currently, all of its drafting work is performed by skilled draftsmen. Rafael Jiminez, Casas’ owner, is considering replacing the draftsmen with a computerized drafting system. However, before making the change, Rafael would like to know the consequences of the change, since the volume of business varies significantly from year to year. Shown below are CVP income statements for each alternative. Manual System Computerized SystemSales $1,500,000 $1,500,000Variable costs 1,200,000 600,000Contribution margin 300,000 900,000Fixed costs 100,000 700,000Net income $ 200,000 $ 200,000Instructions Determine the degree of operating leverage for each alternative.Which alternative would produce the higher net income if sales increased by $150,000?Using the margin of safety ratio, determine which alternative could sustain the greater decline in sales before…Abby Inc. is an established computer software company. In 2009, the firm incurred the following costs in the process of designing, developing and producing a new software program using a certain technology to access the Internet: Designing and planning P1,800,000 Code development 2,700,000 Testing 900,000 Production of product master 4,500,000 In 2010, Abby incurred P1,800,000 in costs to produce the software program for sale in 2010. The costs of designing and planning, code development and testing were all incurred before the technological feasibility of the product was established. Abby began marketing the software program in 2010 and earned revenues of P4,320,000 in 2010. Abby estimates that the total revenues over the 4-year life of the product will be P21,600,000. At the end of 2010, Abby was offered…
- Abby Inc. is an established computer software company. In 2009, the firm incurred the following costs in the process of designing, developing and producing a new software program using a certain technology to access the Internet: Designing and planning P1,800,000 Code development 2,700,000 Testing 900,000 Production of product master 4,500,000 In 2010, Abby incurred P1,800,000 in costs to produce the software program for sale in 2010. The costs of designing and planning, code development and testing were all incurred before the technological feasibility of the product was established. Abby began marketing the software program in 2010 and earned revenues of P4,320,000 in 2010. Abby estimates that the total revenues over the 4-year life of the product will be P21,600,000. At the end of 2010, Abby was offered…Suppose that Demont has been given a summer job as an intern at Isaac Aircams, a company that manufactures sophisticated spy cameras for remote-controlled military reconnaissance aircraft. The company, which is privately owned, has approached a bank for a loan to help it finance its growth. The bank requires financial statements before approving such a loan. Classify each cost listed below as either product costs or period costs for the purpose of preparing the financial statements for the bank. Costs Product Cost/Period Cost 1. Depreciated on salesperson's cars 2. Rent on equipment used in the factory 3. Lubricants used for machine maintenance 4. Salaries of personnel who work in the finished goods warehouse 5. Soap and paper towels used by factory workers at the end of a shiftSuppose that Demont has been given a summer job as an intern at Isaac Aircams, a company that manufactures sophisticated spy cameras for remote-controlled military reconnaissance aircraft. The company, which is privately owned, has approached a bank for a loan to help it finance its growth. The bank requires financial statements before approving such a loan. Classify each cost listed below as either product costs or period costs for the purpose of preparing the financial statements for the bank. Cost Product Cost/Period Cost 1. Factory supervisors' salaries 2. Heat, water, and power consumed in the factory 3. Materials used for boxing products for shipment overseas. Units are normally boxed. 4. Advertising costs 5. Workers' compensation insurance for factory employee
- Suppose that Demont has been given a summer job as an intern at Isaac Aircams, a company that manufactures sophisticated spy cameras for remote-controlled military reconnaissance aircraft. The company, which is privately owned, has approached a bank for a loan to help it finance its growth. The bank requires financial statements before approving such a loan. Classify each cost listed below as either product costs or period costs for the purpose of preparing the financial statements for the bank. Cost Product Cost/Period Cost1. Depreciation on chairs and tables in the factory lunchroom 2. The wages of the receptionist in the administrative offices 3. Cost of leasing the corporate jet used by the company's executives 4. The cost of renting rooms at a Florida resort for the annual sales conference 5. The cost of packaging the company's productSWA company is trying find costs of its products. Which of the following statements is true? A cost is: a. Always an expense. b. Always an asset. c. Something quite different from either an expense or an asset. d. Can be either an expense or an asset. e. Always a liability. MS Harius is an accounting in Lata company; the company has leased a copying machine on a monthly basis which is on a fixed fee each month in addition to a charge per copy. Technical made 2,400 copies and paid a total of $162 in rent in September and in October they paid $195 for 3,500 copies Determine the total amount that would be paid for 1,800 copies. a. Some other amount not listed here b. $138 c. $144 d. $160 e. $163Brill Company made the following expenditures during the current year: Costs to develop computer software for internal use in Brill’s general management information system: 1 000 000 Cost of market research activities 750 000 How much Brill Company's expense?
- An example of an uncontrollable cost would include all of the following except______. A. real estate taxes charged by the county in which the business operates B. per-gallon cost of fuel for the companys delivery trucks C. hourly rate of pay for the companys purchasing manager D. federal income tax rate paid by the companySuppose that you have been given a summer job as an intern at Issac Aircams, a company that manufactures sophisticated spy cameras for remote-controlled military reconnaissance aircraft. The company, which is privately owned, has approached a bank for a loan to help finance itsgrowth. The bank requires financial statements before approving the loan.Required:Classify each cost listed below as either a product cost or a period cost for the purpose of preparing financial statements for the bank.1. Depreciation on salespersons’ cars.2. Rent on equipment used in the factory.3. Lubricants used for machine maintenance.4. Salaries of personnel who work in the finished goods warehouse.5. Soap and paper towels used by factory workers at the end of a shift.6. Factory supervisors’ salaries.7. Heat, water, and power consumed in the factory.8. Materials used for boxing products for shipment overseas. (Units are not normally boxed.)9. Advertising costs.10. Workers’ compensation insurance for factory…Jay Ltd wants to drop one of their service lines since it is showing a loss. The following details are provided for cleaning services. Revenue $80 000 Less: Cost of cleaning products used 30 000 Gross profit $50 000 Less: Operating expenses 62 300 Wages of cleaning staff 35 000 Other items used for cleaning 3 000 Depreciation building used for storage(allocated) 2 000 Manager’s salary (allocated) 13 000 Depreciation of cleaning equipment 7 000 Electricity(allocated)…