Question 1.(excel) ABC Carpet Cleaners had been operating for several years. The following transactions occurred during the month of March. March 1 Purchased (and used) cleaning supplies for cash: $600. March 2 Paid off the $500 that was owed from February. March 4 Completed a major cleaning job. Billed $3,000 but did not collect. March 9 Purchased a new Super Sucker brand vacuum for $6,000 on account. Payment is due in 30 days. March 11 Collected amount owed to us from February. March 15 Completed a cleaning job. Billed $1,000, collected half. March 16 Paid employees’ salaries of $2,500. March 19 Paid $500 to repair a broken vacuum. March 22 Received and paid a heating bill: $100. March 24 Received a telephone bill: $50, did not pay. March 28 Collected money from the March 4 cleaning job. March 31 Paid interest of $75 on the bank loan. March 31 Shareholders took a dividend totaling $700. Required: Record all necessary journal entries based on the transactions above.
Question 1.(excel)
ABC Carpet Cleaners had been operating for several years.
The following transactions occurred during the month of March.
March 1 Purchased (and used) cleaning supplies for cash: $600.
March 2 Paid off the $500 that was owed from February.
March 4 Completed a major cleaning job. Billed $3,000 but did not collect.
March 9 Purchased a new Super Sucker brand vacuum for $6,000 on account. Payment is due in 30 days.
March 11 Collected amount owed to us from February.
March 15 Completed a cleaning job. Billed $1,000, collected half.
March 16 Paid employees’ salaries of $2,500.
March 19 Paid $500 to repair a broken vacuum.
March 22 Received and paid a heating bill: $100.
March 24 Received a telephone bill: $50, did not pay.
March 28 Collected money from the March 4 cleaning job.
March 31 Paid interest of $75 on the bank loan.
March 31 Shareholders took a dividend totaling $700.
Required:
Record all necessary
Question #2-3 (excel)
Several items are omitted from the income statement and cost of goods manufactured statement data for ABC company for the month of December 2014:
Materials inventory, December 1 $ 65,800
Materials inventory, December 31 ?
Materials purchased 282,800
Cost of direct materials used in production 317,800
Direct labor 387,800
Factory overhead 148,400
Total
Total manufacturing costs 973,000
Work in process inventory, December 1 119,000
Work in process inventory, December 31 172,200
Cost of goods manufactured ?
Finished goods inventory, December 1 224,000
Finished goods inventory, December 31 197,400
Sales 1,127,000
Cost of goods sold ?
Gross proft ?
Operating expenses 117,600
Net income ?
Instructions
Determine the amounts of the missing items, identifying them by letter.
Prepare ABC Company’s statement of cost of goods manufactured for December.
Prepare ABC Company’s income statement for December
Question #4
Company has decided to use the high-low method to estimate the total cost and
the fixed and variable cost components of the total cost. The data for various levels of
production are as follows:
Units Produced Total Costs
8,100 $525,000
11,250 630,000
18,100 690,000
a. Determine the variable cost per unit and the total fixed cost.
b. Based on part (a), estimate the total cost for 15,000 units of production.
Question #5 excel
Sorce Instrument, Inc. manufactures two products: missile range instruments
and space pressure gauges. During April, 50 range instruments and 300 pressure gauges
were produced, and overhead costs of $89,500 were estimated. An analysis of estimated
overhead costs reveals the following activities.
Activities Cost Drivers Total Cost
1.Materials handling Number of requisitions $35,000
2. Machine setups Number of setups 27,500
3. Quality inspections Number of inspections 27,000
Total $89,500
The cost driver volume for each product was as follows:
Cost Drivers Instruments Gauges Total
Number of requisitions 400 600 1,000
Number of setups 200 300 500
Number of inspections 200 400 600
Instructions :
(a) Determine the overhead rate for each activity.
(b) Assign the manufacturing overhead costs for April to the two products using activity based costing
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