mpany use estimated urred duri February:
Q: Given the following items , compute the required ones. REQUIRED COST OF SALES GIVEN Asset Turnover :...
A: In accounting, a ratio is used to evaluate the company's financial performance by establishing the r...
Q: Which one of the following actions would be most appropriate to help meet the liquidity needs of Kar...
A: Karen is the sole owner of a wildly successful small business. She does want to take some action to ...
Q: On the basis of audit evidence gathered and evaluated, an auditor decides to decrease the level of d...
A: Answer: Option D. Decrease in the assessed control risk.
Q: nswers
A: Bond Accounting : Effective interest Method Calculation of coupon payment Face value of 5% Bond 1...
Q: Bally Incorporated has identified the following cost drivers for its expected overhead costs for the...
A: Overheads are the indirect costs related with the production and manufacturing of goods. These costs...
Q: Question 5 A company had the following balance sheet as on 31 March, 2021: Liebilities in Crores Ass...
A: Earnings Before Tax It is the gross amount of earnings that a firm earns from its activities that ma...
Q: On January 1, 2018, KingKong Corp. purchased an equipment with an estimated useful life of 8 years. ...
A: Salvage Value P2,000 Useful Life (in years) 8 Sum of the year (1+2+3+4+5+6+7+8) 36 Depreciatio...
Q: Multiple choice: 1. Which of the following is one of the fundamental qualitative characteristics? A....
A: 1. Relevance and faithful presentation are the two most important qualitative qualities of financial...
Q: A company purchased land by signing a note with the seller, requiring down payment of P100,000, paym...
A: The value of land will be equal to present value of all payments to be made against purchase of land...
Q: On June 30, 2021, Singleton Computers issued 7% stated rate bonds with a face amount of $200 million...
A: Price of bond will be present value of maturity amount & interest amount as per market rate of i...
Q: Rainbow Company reported the following balances at the beginning of current year, Accou...
A: Solution Bad debts refer to the loans or outstanding balances owed that are no longer deemed recover...
Q: You are an accountant working for a company that has recently decided to incorporate. The company ha...
A: Solution A journal is a company's official book in which all business transaction are recorded in ch...
Q: Home Office P 256,000 210,000 Branch Sales P 78,500 Purchases from outsiders 20,000 Shipments to bra...
A: Inventory : Acquired from outsiders 5,500 Acquired from home office 26,000
Q: Discuss further on liabilities of partners and share your thoughts on the issues alone.
A: In case of partnership firm partners shall be liable for partnership liabilities.
Q: ner secu 21. 1 point An entity reported current receivables on December 31, 2015 which consisted of ...
A: Calculation of Total Current Net Receivable as on December 31, 2015 Particulars Amount Trade ...
Q: Blossom Company provides the following information about Its defined Behefit Service cost $ 91,800 C...
A: The amount charged to expenditure by a firm in regard to its liabilities for employee pensions is kn...
Q: a. The home office has billed the branch the amount of P37,500 for the merchandise, which was in tra...
A: Calculation: Amount (P) Branch account balance in the books of home office 1,50,00...
Q: X, Y, and Z formed a partnership on Jnauary 1, 2021, and contributed P150,000; P200,000; P300,000, r...
A: Partners Capital Account is an account created in the books of a partnership firm. It records each a...
Q: anet Company purchased a machine on April 1, 2017 for P750,000. At that time, was determined that t...
A: Depreciation Expenses - Depreciation Expenses are the expense incurred on the wear and tear of the f...
Q: Percent of Sales Per Unit $ 125 Selling price Variable expenses 100% 80 64 Contribution margin $ 45 ...
A: Calculation of Increase in Net Operating Income Increase in Net Operating Income = Additional Contri...
Q: On October 1, 2005, Steve admits Martin for an interest in his business. On this date, Steve's capit...
A: Partnership is one of the agreement or arrangement between two or more than two persons, in which th...
Q: On January 1, 2018, the Danelle Company leased a portion of the commercial building owned by Joseph ...
A: Carrying amount of the leasehold improvement on January 1, 2021: The leasehold improvement should be...
Q: On January 2, 2021, X Co. acquired all the ordinary share of Y Co. for P2,060,000. On that date, Y C...
A: In case one company overtake the assets and liabilities of another company , then accounting for am...
Q: CVP: Before- and After-Tax Targeted Income Head-Gear Company produces helmets for bicycle racing. Cu...
A: Hi student Since there are multiple subparts, we will answer only first three subparts.
Q: ABC Company operates a branch. At the end of the year, the Branch account in the books of the home o...
A: S.no Description Debit (P) Credit (P) a. Goods sent to branch Branch (Goods are still in tr...
Q: Determine Dianne's provincial income tax deduction per pay period. Your answer:
A: Solution:- Given, Dianne works for a company located in Pierrefonds, Quebec. Salary = $53,274 semi-...
Q: Home Office Branch Sales P 256,000 P 78,500 Purchases from outsiders 210,000 20,000 Shipments to bra...
A: a. Mark up on purchase = (40,000 - 30,000)/40,000 = 25% of Billing price Inventory at cost on Decemb...
Q: Which of the following statements is incorrect? A. As the risk of material misstatement in the finan...
A: It is important for the Auditors to detect the material misstatement which are involved to the Audit...
Q: 1.) Solve the Income Statement of AAA Company using Horizontal Analysis. 2.) As a Financial Analyst ...
A: Income statement is the statement which provides the company to determine about how much net earning...
Q: If the partners opted to continue the books of the sole proprietor and the Merchandise inventory has...
A: Partnership is one of the agreement between two or more than two persons in which they invest their ...
Q: Reuben Company retires a machine from active use on January 2, 2019, for the express purpose of leas...
A: Step 2 in solution.
Q: TaskMaster Enterprises employs a standard cost system in which direct materials inventory is carried...
A: Direct labour price variance shows difference in standard labour cost and actual labour cost due to ...
Q: A number of graphs displaying cost behavior patterns are shown below. The vertical axis on each grap...
A: 1. Rent charge is $ 100000 which will be reduced gradually by $ 1 for every excess direct labor hour...
Q: Line Company exchanged a car from its inventory for a computer system to be used in its technologica...
A: Solution: In case of exchange of assets having commercial substance, assets received and asset given...
Q: Why does Swift's narrator indicate that he gains nothing proposal?
A: Solution:- The main purpose of Swift's narrator is satirical essay is to call attention to the probl...
Q: Serpent Home Depot carries wide variety of promotional techniques to attract customers. Kitchen and ...
A: Solution Warranty Expense is the cost that a business Expects to or has already incurred for the rep...
Q: The failure to adjust the books would cause:
A: Adjusting entries are recorded at the end of the financial year to adjust the accounts and record an...
Q: Laly contributed land, inventory and P350,000 cash to a partnership, The land has a book value of P7...
A: The assets (other than cash) invested by partners are recorded at their market value instead of book...
Q: Compute for the unadjusted balance of the Home Office Current account.
A: The unadjusted balance in the books of home office of branch account is P 567980. Based on the data ...
Q: Grygiel Company leases a nonspecialized machine with a fair value of $40,000 to Baker Company. The l...
A: Residual value is the leftover value of an asset after the end of its useful life.
Q: 6. ABC Co. owns a branch. At the end of the month, the balance of the Allowance on overvaluation is ...
A: The profit percentage is calculated as profit divided by total cost.
Q: e home office inadvertently faxed a note to the branch informing the branch of a collec fice's custo...
A: The unadjusted balance in the books of home office of branch account is P 567980. Based on the data ...
Q: image below) Compute for the unadjusted balance of the Home Office Current account.
A: We are given the balance of branch current account and need to find the balance of home office curre...
Q: 20 Pope Company makes a single product that is subject to wide seasonal variations in demand. The co...
A: Using high low method, the fixed cost and variable costs are separated from the mixed cost.
Q: Compute for the unadjusted balance of the Home Office Current account.
A: The question provides us with the balance of branch current account in the books of head office and ...
Q: Multiple choice: 1. The measure of how quickly an item can be converted into cash is referred to as ...
A: 1. Liquidity is the measure of how quickly an item can be converted into cash i.e. conversion of ass...
Q: oose the letter of the correct answer 2. When the cost model/method is used to account for an inve...
A: the cost method counting investment mended that investor account for the investment at historical co...
Q: What are scheduled, interim, and past due statements? Please explain.
A: Financial statements are documents that detail a company's operations and cash flows results. . The ...
Q: On September 1, 2021, Middleton Corp. lends cash and accepts a $1,200 note receivable that offers 6%...
A: Interest revenue for the period from September 1, 2021 to December 31, 2021 will be recognized in th...
Q: 409 Interest revenue (d) 556 (с) з, з0е (e) 636 (a) 855 (b) 1,605 $ 6,952 Depreciation expense-Offic...
A: Adjusting entries are important when there are additional transactions to be recorded after the unad...
Step by step
Solved in 2 steps
- PREDETERMINED FACTORY OVERHEAD RATE Millerlile Enterprises calculates a predetermined factory overhead rate so that factory overhead may be applied to production during the month. It calculates the overhead using three different methods and then decides which one to use. Total estimated factory overhead costs are 540,000. Total estimated direct labor hours are 50,000. Total estimated direct labor costs are 900,000. Total machine hours are estimated to be 80,000. Calculate the predetermined overhead application rates based on (1) direct labor hours, (2) direct labor costs, and (3) machine hours.PREDETERMINED FACTORY OVERHEAD RATE Marston Enterprises calculates a predetermined factory overhead rate so that factory overhead may be applied to production during the month. It calculates the overhead using three different methods and then decides which one to use. Total estimated factory overhead costs are 600,000. Total estimated direct labor hours are 30,000. Total estimated direct labor costs are 1,200,000. Total machine hours are estimated to be 200,000. Calculate the predetermined overhead application rates based on (1) direct labor hours, (2) direct labor costs, and (3) machine hours.When setting its predetermined overhead application rate. Tasty Turtle estimated its overhead would be $75,000 and manufacturing would require 25,000 machine hours in the next year. At the end of the year, it found that actual overhead was $74,000 and manufacturing required 24,000 machine hours. Determine the predetermined overhead rate. What is the overhead applied during the year? Prepare the journal entry to eliminate the under- or over applied overhead.
- JOB ORDER COSTING TRANSACTIONS D K Enterprises makes wicker baskets. During the month of August, the company had four job orders: 501, 502, 503, and 504. Overhead was applied at predetermined rates, while actual factory overhead was recorded as incurred. All four jobs were completed. (a) Purchased raw materials on account, 44,000. (b) Issued direct materials to production: (c) Issued indirect materials to production, 5,000. (d) Incurred direct labor costs: (e) Charged indirect labor to production, 3,300. (f) Paid electricity, heating oil, and repair bills for the factory and charged to production, 5,200. (g) Applied factory overhead to each of the jobs using a predetermined factory overhead rate as follows: (h) Finished Job Nos. 501-504 and transferred to the finished goods inventory account as products W, X, Y, and Z, respectively. (i) Sold products W, X, Y, and Z for 17,500, 18,000, 16,900, and 19,000, respectively. REQUIRED 1. Prepare general journal entries to record transactions (a) through (i). Make compound entries for (b), (d), and (g), with separate debits for each job. 2. Post the entries to the work in process and finished goods T accounts only.Overhead Assignment: Actual and Normal Activity Compared Reynolds Printing Company specializes in wedding announcements. Reynolds uses an actual job-order costing system. An actual overhead rate is calculated at the end of each month using actual direct labor hours and overhead for the month. Once the actual cost of a job is determined, the customer is billed at actual cost plus 50%. During April, Mrs. Lucky, a good friend of owner Jane Reynolds, ordered three sets of wedding announcements to be delivered May 10, June 10, and July 10, respectively. Reynolds scheduled production for each order on May 7, June 7, and July 7, respectively. The orders were assigned job numbers 115, 116, and 117, respectively. Reynolds assured Mrs. Lucky that she would attend each of her daughters weddings. Out of sympathy and friendship, she also offered a lower price. Instead of cost plus 50%, she gave her a special price of cost plus 25%. Additionally, she agreed to wait until the final wedding to bill for the three jobs. On August 15, Reynolds asked her accountant to bring her the completed job-order cost sheets for Jobs 115, 116, and 117. She also gave instructions to lower the price as had been agreed upon. The cost sheets revealed the following information: Reynolds could not understand why the overhead costs assigned to Jobs 116 and 117 were so much higher than those for Job 115. She asked for an overhead cost summary sheet for the months of May, June, and July, which showed that actual overhead costs were 20,000 each month. She also discovered that direct labor hours worked on all jobs were 500 hours in May and 250 hours each in June and July. Required: 1. How do you think Mrs. Lucky will feel when she receives the bill for the three sets of wedding announcements? 2. Explain how the overhead costs were assigned to each job. 3. Assume that Reynoldss average activity is 500 hours per month and that the company usually experiences overhead costs of 240,000 each year. Can you recommend a better way to assign overhead costs to jobs? Recompute the cost of each job and its price, given your method of overhead cost assignment. Which method do you think is best? Why?Job costs At the end of May, Bergan Company had completed Jobs 200 and 305. Job 200 is for 2,390 units, and Job 305 is for 2,053 units. Using the data from BE 16-1, BE 16-2, and BE 16-4, determine (A) the balance on the job cost sheets for Jobs 200 and 305 at the end of May, and (B) the cost per unit for Jobs 200 and 305 at the end of May.
- JOB ORDER COSTING WITH UNDER- AND OVERAPPLIED FACTORY OVERHEAD M. Evans Sons manufactures parts for radios. For each job order, it maintains ledger sheets on which it records direct labor, direct materials, and factory overhead applied. The factory overhead control account contains postings of actual overhead costs. At the end of the month, the under- or over applied factory overhead is charged to the cost of goods sold account. Factory overhead is applied on the basis of direct labor hours. For Job Nos. 101, 102,103, and 104, direct labor hours are 12, 000, 10,000, 11, 000, and 18,000, respectively. The overhead application rate is 1.20/direct labor hour. (a) Purchased raw materials on account, 50,000. (b) Issued direct materials: (c) Issued indirect materials to production, 8,000. (d) Incurred direct labor costs: (e) Charged indirect labor to production, 15,000. (f) Paid electricity bill, taxes, and repair fees for the factory and charged to production, 8,000. (g) Depreciation expense on factory equipment, 30,000. (h) Applied factory overhead to Job Nos. 101104 using the predetermined factory overhead rate (see above). (i) Finished Job Nos. 101103 and transferred to the finished goods inventory account as products N, O, and P. (j) Sold products N and for 50,000 and 45,400, respectively. (k) Transferred under- or over applied factory overhead balance to the cost of goods sold account. REQUIRED 1. Prepare general journal entries to record transactions (a) through (k). 2. Post the entries to the work in process and finished goods accounts only and determine the ending balances in these accounts. 3. Compute the balance in the job cost ledger and verify that this balance agrees with that in the work in process control account.Overhead application rate Creole Manufacturing Inc. uses a job order cost system and standard costs. It manufactures one product, whose standard cost follows: The standards are based on normal capacity of 2,400 direct labor hours. Actual activity for October follows: Required: 1. Compute the variable and fixed factory overhead rates per unit. 2. Compute the variable and fixed overhead rates per direct labor hour. 3. Determine the total fixed factory overhead based on normal capacity.SCHEDULE OF COST OF GOODS MANUFACTURED The following information is supplied for Sanchez Welding and Manufacturing Company. Prepare a schedule of cost of goods manufactured for the year ended December 31, 20--. Assume that all materials inventory items are direct materials. Work in process, January 1 20,500 Materials inventory, January 1 11,000 Materials purchases 12,000 Materials inventory, December 31 13,000 Direct labor 9,500 Overhead 5,500 Work in process, December 31 10,500
- Leen Production Co. uses the job order cost system of accounting. The following information was taken from the companys books after all posting had been completed at the end of May: a. Compute the total production cost of each job. b. Prepare the journal entry to transfer the cost of jobs completed to Finished Goods. c. Compute the selling price per unit for each job, assuming a mark-on percentage of 40%. d. Prepare the journal entries to record the sale of Job 1065.Amounts for materials Big Timber Furniture Company manufactures furniture. Big Timber Furniture uses a job order cost system. Balances on June 1 from the materials ledger are as follows: The materials purchased during June are summarized from the receiving reports as follows: Materials were requisitioned to individual jobs as follows: The glue is not a significant cost, so it is treated as indirect materials (factory overhead). a.Determine the total purchase of materials in June. b.Determine the amounts of materials transferred to Work in Process and Factory Overhead during June. c.Determine the June 30 balances that would be shown in the materials ledger accounts.A new company started production. Job 10 was completed, and Job 20 remains in production. Here is the information from job cost sheets from their first and only jobs so far: Using the information provided. A. What is the balance in work in process? B. What Is the balance in the finished goods inventory? C. If manufacturing overhead is applied on the basis of direct labor hours, what is the predetermined overhead rate?