Prepare entries for delivery truck costs. 1. Paid €45 for an oil change. 2. Paid €580 to install special gear unit, which increases the operating efficiency of the truck. Prepare Tong's journal entries to record these two transactions.
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- 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…On January 1, 2030, KKK consigned 300 units of gaming keyboards to SSS Each keyboard costs P400 and is sold at 50% above cost. After selling 200 keyboards, the remaining 200 units were repaired for some defects for P4,000. Because of this, SSS increased the selling price by P60. At the end of the month, SSS remitted P129,960 after deducting 15% commission, and reimbursable expenses of P1700 delivery expense and the P4,000 repair of the 100 units. How many consigned units were sold?The list price of a secondhand van was P300,000 at a local car dealership. However, a customer convinced the dealer to sell the van for P250,000 (the van had cost the dealer P200,000). The amount of revenue that would be recognized as a result of the sale is:
- Sandhill Co. had the following two transactions related to its delivery truck. 1. Paid $55 for an oil change. 2. Paid $447 to install special shelving units, which increase the operating efficiency of the truck. Prepare Sandhill Co.’s journal entries to record these two transactions.Standard Appliances obtains refrigerators for $1520 less 29% and 5%. Standard's overhead is 16% of the selling price of $1595. A scratched demonstrator unit from their floor display was cleared out for $1240. a) What is the regular rate of markup on cost ? b)What is the rate of markdown on the demonstrator unit? c)What is the operating profit or loss on the demonstrator unit? d)What is the rate of markup on cost that was actually realized?Carla Vista Co. had the following two transactions related to its delivery truck. 1. Paid $48 for an oil change. 2. Paid $549 to install special shelving units, which increase the operating efficiency of the truck. Prepare Carla Vista Co.’s journal entries to record these two transactions.
- The trial balance of Esplanade Company showed inventories of P164,000. The inventories include some goods that have a production cost of P18,000. These goods have a manufacturing defect that will cost P6,000 to correct. The normal selling price for these goods would be P25,000, but after the remedial work they will be sold through an agent as refurbished goods at a discount of 20% on the normal selling price. The agent will receive a commission of 10% of the reduced selling price. In relation to the defective goods, the company will recognize a loss on inventory write down ofAppliance Store realizes a mark-up of PhP3,450 in selling TV sets. If its items are sold at a mark-up of 40% of the selling price, D. If overhead expenses are at 27% of the cost, what is the break-even price of the TV set? E. If the TV set is sold at PhP7,500, how much profit or loss is incurred by Appliance Store? pls. show all the solutionsThe trial balance of Magic Shop Company showed inventories of P164,000. The inventories include some goods that have a production cost of P18,000. These goods have a manufacturing defect that will cost P6,000 to correct. The normal selling price for these goods would be P25,000, but after the remedial work they will be sold through an agent as refurbished goods at a discount of 20% on the normal selling price. The agent will receive a commission of 10% of the reduced selling price. In relation to the defective goods, the company will recognize a loss on inventory write down of? A. P4,000 B. P0 C. P1,000 D. P6,000
- Provide a better solution On January 1, 2021, VVV received from ABC 300 pieces of bread toaster. VV was to sell these on consignment at 50% above original cost, for a 15% commission on the selling price. After selling 200 pieces, VVV had the remaining unsold units repaired for some electrical defects which he spent P2,000. ABC subsequently increased the selling price of the remaining units to P330 per unit. On January 31,2021, VVV remitted P64,980 to ABC after deducting the 15% commission, P850 for delivery expenses of sold units, and P2,000 for the repair of 100 units. The consignment goods cost ABC P200 per unit, and P900 had been paid to ship them to VVV shop. All expenses in connection with the consignment were reimbursable to the consignee. Determine the value inventory to be presented in the statement of financial position.AZCO purchased an item for $695 less 30% and 20%, and marked it up 125% of cost. During a special sale, the company sold the item at 40% off. Overhead is 20% of cost. What was the profit (loss) at the sale price?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-…