Question 3 A product is manufactured by passing materials through two processes. Production costs for 2021 January are as follows: Direct materials Direct labour Overheads There is no beginning or ending work in progress inventory. Normal losses: Process A 4 000 kg @ $3.00 per kg $2.000 100% of direct labour cost Process A Process B 10% 5% Process B 1 500 kg @ $2.50 per kg $1.500 125% of direct labour cost
Q: INSTRUCTIONS: Create a pro-forma income statement based on the given problem. Supply the given items…
A: Here given the details of the preparation of the pro forma income statement which can be useful to…
Q: Which of the following is NOT an objective of job costing? Select the correct response: To determine…
A:
Q: On July 1, 2018, Alaska Corp. issued 6,000 shares of its P 100 par ordinary share to Atty. Black as…
A: Introduction: A share is a type of corporate ownership unit. A share entitles this same holder to a…
Q: Describe how and why managers of companies use budgets. In doing so, cite three advantages of using…
A: Ans. Companies need to prepare budgets on a regular basis so to find out the flow of business and…
Q: Cost of Goods Sold, Cost of Goods Manufactured Princeton 3 Company has the following information for…
A: Cost of Goods Sold: The entire amount that your company spent for costs that are directly connected…
Q: Which of the following statements is (are) FALSE? Select one or more alternatives: When sales of a…
A: This is an important criteria in order to understand the capital decisions regarding investment in…
Q: The following data were available for ABC Trading at Dec 31, 20X1: Trade accounts receivable…
A: Trade and Other Receivables - Trade Receivable is the amount due from the customer. Customer to…
Q: Oriole Corporation has 74,000 shares of common stock outstanding. It declares a $2 per share cash…
A: The process of recording business transactions in the books of accounts for the first time is…
Q: Presented below are transactions related to Concord Corporation. 1. 2. 3. (a) On December 3, Concord…
A: >Under perpetual inventory system, the Inventory account is updated after every purchase and…
Q: On January 1, 20X2, partners ABC, BCD and CDE, who share profits and losses in the ratio of 5:3:2,…
A: Liquidation of a partnership can be explained as closure or shutting of business activities due to…
Q: 2.Gains and losses resulting from intercompany transactions between an investor and an associate are…
A: As per IAS 28 Gains and losses resulting from intercompany transactions between an investor and an…
Q: At the end of its last fiscal year, December 31, 2021, Sink Corporation had issued 360,000 shares of…
A: According to the question, we are required to prepare the journal entries. The journal entries: The…
Q: INSTRUCTIONS: Create a pro-forma income statement based on the given problem Supply the given items…
A: Based on the the above data we need to classify the same and prepare the income STatement
Q: Cumberland Co. sells $919 of inventory to Hancock Co. for cash. Cumberland paid $673 for the…
A: Introduction: Journals: All the business transactions are to be recorded in Journals. Journals are…
Q: INSTRUCTIONS: Create a pro-forma income statement based on the given problem. Supply the given items…
A: A pro-forma income statement is looks like a normal income statement the only major difference…
Q: Tucker Pup's Pet Resort offers dog boarding services in Chicago. Assume that in March, when dog-…
A: Introduction: Operating expenditures are the expenses incurred by the company in order to operate or…
Q: Financial accounting is shaped to a significant extent, by the environment, and in particular all of…
A: Hi student Since there are multiple questions, we will answer only first question. Financial…
Q: PROBLEM 3 On June 30, 2018, Upton Inc. sold $3,000,000 (face value) of bonds. The bonds are dated…
A: >Bonds Payable are the source of finance for the companies. >The bondholders are…
Q: Amalgamated General Corporation is a consulting firm that also offers financial services through its…
A: Journal entry: It is the first step of recording transactions of a company. Before this, no other…
Q: On January 1, the first day of the fiscal year, a company issues a $1,500,000, 11% , five-year bond…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Lucille receives an annual salary of $37,500 based on a 37.5 hour workweek. What are her gross…
A: The gross earning refers to the total earnings of the employee. The overtime hourly wage rate is…
Q: On January 1 2001, Coca Cola purchased 5,000,000 shares of the outstanding 25,000,000 ordinary…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: LO 6.1 Record journal entries for the following transactions of Furniture Warehouse. 1. July 5:…
A: Introduction: Journals: All the business transactions are to be recorded in Journals. Journals are…
Q: State the section(s) of the statement of cash flows prepared by the indirect method (operating…
A: In the context of the given question, we are required to show the treatment of different…
Q: The following are items found in the records of ABC Corp at Dec 31, 20X1: Cash in BPI , P102,000…
A: According to the given question, we need to compute the cash balance as of December 31, 20x1. We…
Q: Greta Boyd (70), a single taxpayer, began receiving a pension of $2500 per month for life on June 1,…
A: As per the provision in US if there is zero mention in Box 2a in form 1099-R then the whole income…
Q: Create a pro-forma income statement based on the given problem. Supply the given items listed…
A: The purpose preparing the income statement which is derived the net income which are incurred at the…
Q: Goofy Productions Limited had gross wages owing to their employees of $8,400 on March 31, 2022.…
A: In the context of the given question, we are required to compute the deduction and net pay owing to…
Q: INSTRUCTIONS: Create a pro-forma income statement based on the given problem Supply the given items…
A: Based on the data given on the sum we need to create a pro forma Income Statement.
Q: (Franking Account) Rudimentary Pty Ltd, a corporate tax entity, has the following transactions for…
A: Franking Account: It is a rolling balance account, in other words "The Franking Account Balance is…
Q: 18.On January 1, 2021, REEDY SLENDER Co. purchased fixtures at an installment price of ₱520,000.…
A: Fixed assets means the assets which is used for many years in business and depreciated over the…
Q: In Classification Of Cost (Marginal costs) What Is A Business Situational Example of the ff:…
A: Cost is the amount which is spend to sold the goods or to provide the service. It is comprises of…
Q: The following information relates to noncurrent investments that High Corp. placed in trust as…
A: A sinking fund refers to sum accumulated by the company for the purpose of repayment of debt/…
Q: The annual accounting period ends December 31 Apr. 30 Received $465,000 from Commerce Bank after…
A: Accounting transactions will be recorded with the use of journal entries in the firm's books of…
Q: X sold his dog to Y on 01 May 2022 with the stipulation that X will deliver the same on 20 May 2022.…
A: Contract refers to the agreement which is enforceable legally which states, governs as well as…
Q: PROBLEM SOLVING (MCQ) The TAGALOG CORPORATION purchases merchandise from a foreign exporter on…
A: Foreign exchange transactions are those transactions which are entered between two parties in…
Q: 4. PT Telcgreen as of December 31, 2018 has a cash balance in the Current Account of Rp.…
A: Cash and cash equivalents Cash and cash equivalents mean cash in hand or any highly liquid assets on…
Q: On 1 January 2020, Moon Co entered into a five-year lease of equipment which has a remaining useful…
A: Lease is a contractual agreement under which one party gives its asset to another party for using…
Q: Problem 4: Ordinary Shares, no growth rate: The expected rate of return of the shareholders is 18%.…
A: Ans. Value of share = Dividend to be received/Expected rate of return
Q: A carpenter produced 200 sofas which he sold at k5000/ sofa, he incurred k5000 on raw materials, he…
A: Accounting Profit = Total Revenue – Explicit Costs Explicit cost are the actual cost of the…
Q: 6. Tulip Company purchased the net assets of another entity for P2,000,000. On the sate of the…
A: >When an entity is acquired, the amount is paid to pay for the net assets acquired.>Net assets…
Q: ABC Co received from a customer a 5-year non-interest bearing note of P120,000 on Jan 1, 20X1.…
A: Note receivable is one of the current asset of the business. It means some amount is to be received…
Q: Required information [The following information applies to the questions displayed below.] ATW…
A: FIFO LIFO Beginning inventory $8,000,000 $7,000,000 Ending inventory $7,000,000 $5,500,000
Q: reate a pro-forma income statement based on the given problem Supply the given items listed…
A: Financial Statements: Financial statements are of three types i.e. Income Statement, Balance Sheet…
Q: NewB Company sells bags with a selling price of P10,000 per bag and a variable cost of P4,000 per…
A: Breakeven sales is that level of sales at which business is fully recovering it's fixed costs and…
Q: A complete set of financial statements does not include a Select the correct response: statement of…
A: Hi student Since there are multiple questions, we will answer only first question. Accounting is…
Q: On January 1, 2020, Mcllroy, Inc., acquired a 60 percent interest in the common stock of Stinson,…
A:
Q: Oil from a specific type of marine microalgae can be converted into biodiesel that may serve as an…
A: Present worth is the present value of cash flows which arise in future, it can be calculated by…
Q: On its year 1 financial statements, Seatax Corporation, an accrual-method taxpayer, reported federal…
A: As per the given information: Amount reported as federal income tax expense in financial statements…
Q: Determine Tax Payable for Trust under CANADIAN TAX LAW.
A: A trust is an organization that is made of social services. Also, trust is created to take care of…
Step by step
Solved in 2 steps
- Direct material costs $3 per unit, direct labor costs $5 per unit, and overhead is applied at the rate of 100% of the direct labor cost. What is the value of the Inventory transferred to the next department if beginning inventory was 2,000 units; 9,000 units were started; and 1.000 units were in ending inventory? A. $1,000 B. $13,000 C. $130.000 D. $20.000Calculate lead time Williams Optical Inc. is considering a new lean product cell. The present manufacturing approach produces a product in four separate steps. The production batch sizes are 45 units. The process time for each step is as follows: Process Step 1 5 minutes Process Step 2 8 minutes Process Step 3 4 minutes Process Step 4 3 minutes The time required to move each batch between steps is 5 minutes. In addition, the time to move raw materials to Process Step 1 is also 5 minutes, and the lime to move completed units from Process Step 4 to finished goods inventory is 5 minutes. The new lean layout will allow the company to reduce the batch sizes from 45 units to 3 units. The time required to move each batch between steps and the inventory locations will be reduced to 2 minutes. The processing time in each step will stay the same. Determine the value-added, non-value-added, and total lead times, and the value-added ratio under the (A) present and (B) proposed production approaches. (Round percentages to one decimal place.)Production run size and activity improvement Littlejohn, Inc. manufactures machined parts for the automotive industry. The activity cost associated with Part XX-10 is as follows: Activity Activity-Base Usage Activity Rate = Activity Cost Fabrication 250 dlh 80per dlh 20,000 Setup 10 setups 80 per setup 800 Production control 10 prod, runs 30 per prod, run 300 Moving 10 moves 25 per move 250 Total activity cost per unit 21,350 Estimated units of production 500 Activity cost per unit 42.70 Each unit requires 30 minutes of fabrication direct labor. Moreover, part XX-10 is manufactured in production run sizes of 50 units. Each production run is set up, scheduled (production control), and moved as a batch of 50 units. Management is considering improvements in the setup, production control, and moving activities in order to cut the production run sizes by half. As a result, the number of setups, production runs, and mows will double from 10 to 20. Such improvements are expected to speed the companys ability to respond to customer orders. Setup is reengineered so that it takes 60% of the original cost per setup. Production control software will allow production control effort and cost per production run to decline by 60%. Moving distance was reduced by 40%, thus reducing the cost per mow by the same amount. A. Determine the revised activity cost per unit under the proposed changes. B. Did these improvements reduce the activity cost per unit? C. What cost per unit for setup would be required for the solution in (A) to equal the base solution?
- Appendix Absorption costing income statement On June 30, the end of the first month of operations, Tudor Manufacturing Co. prepared the following income statement, based on the variable existing concept: Sales (420,000 units) 7,450,000 Variable cost of goods sold: Variable cost of goods manufactured (500,000 units x 14 per unit) 7,000,000 Less ending inventory (80,000 units x 14 per unit) 1,120,000 Variable cost of goods sold 5,880,000 Manufacturing margin 1,570,000 Variable selling and administrative expenses 80,000 Contribution margin 1,490,000 Fixed costs: Fixed manufacturing costs 160,000 Fixed selling and administrative expenses 75,000 235,000 Income from operations 1,255,000 a. Prepare an absorption costing income statement. b. Reconcile the variable costing income from operations of 1,255,000 with the absorption costing income from operations determined in (a).(Appendix 11A) Cycle Time and Velocity Prakesh Company has the following data for one of its manufacturing cells: Maximum units produced in a month: 50,000 units Actual units produced in a month: 40,000 units Hours of production labor in 1 month: 10,000 hours Required: Compute the (1) theoretical cycle time (in minutes), (2) actual cycle time (in minutes), (3) theoretical velocity (in units per hour), and (4) actual velocity (in units per hour).(Appendix 11A) Manufacturing Cycle Efficiency Kurena Company provided the following information on one of its factories: Maximum units produced in a quarter: 180,000 units Actual units produced in a quarter: 112,500 units Hours of cell production labor in a quarter: 30,000 hours Theoretical cycle time: 10 minutes per unit Actual cycle time: 16 minutes per unit Required: 1. Calculate the amount of processing time per unit and the amount of nonprocessing time per unit. 2. Calculate the MCE (rounded to three significant digits).
- Question 3A product is manufactured by passing materials through two processes. Production costs for2021 January are as follows:Process A Process BDirect materials 4 000 kg @ $3.00 per kg 1 500 kg @ $2.50 per kgDirect labour $2 000 $1 500Overheads 100% of direct labour cost 125% of direct labour costThere is no beginning or ending work in progress inventory.Normal losses:Process A 10%Process B 5%Scrapped values:Process A $1.75 per kgProcess B $2.50 per kgOutput for 2021 January was:Process A 3 500 kgProcess B 5 050 kgA. Prepare Process A and Process B accounts. B. Prepare abnormal loss/gain accounts. C. Explain the term, equivalent units.A product is manufactured by passing materials through two processes. Production costs for2021 January are as follows:Process A Process BDirect materials 4 000 kg @ $3.00 per kg 1 500 kg @ $2.50 per kgDirect labour $2 000 $1 500Overheads 100% of direct labour cost 125% of direct labour costThere is no beginning or ending work in progress inventory.Normal losses:Process A 10%Process B 5%Scrapped values:Process A $1.75 per kgProcess B $2.50 per kgOutput for 2021 January was:Process A 3 500 kgProcess B 5 050 kgA. Prepare Process A and Process B accounts. B. Prepare abnormal loss/gain accounts. C. Explain the term, equivalent units.Q8 Read the following Case and write appropriate answer with calculation related to case A product is manufactured as a result of two processes, A and B. details of process B for the month of august were as follow: Particulars Rs Materials transferred from process A 10,000 kg valued at Rs.40,500 Labor Costs 1,000 hours valued Rs.5.616 Overheads 50% of labor cost Output transferred to finished goods 8000 kg Closing work in progress 900 kg Normal loss is 10% of input and losses do not have scrap value. Closing work in progress is 100% complete for material, and 75% complete for both labor and overheads. i)What is the value of the abnormal loss in Rs? Nil 489 544 546 12. ii) What is the value of the output (finished units) nearest to Rs? Rs.43,977 Rs.39,139 Rs.43,488 Rs.43,680 iiI) What are the equivalent units of production as to material and labor & overheads in August? Material…
- QUESTION 2 A company manufacture it main product in two different consecutive processes, process 1 and process 2. The output from process 1 is transferred to process 2 the output of process 2 is sent to the packaging department. Information for the week ended 31 August 2009 is as follows; Process 1 Input Material X 18,00kg @ GH¢1 per kg Material Y 12,000 kg @ GH¢2 per kg Labour 1,720 hours @ GH¢3 per hour Normal loss 5% of input Sales price of scrap GH¢0.32 per kg Output 27,000 kg There was no opening stock but 600 kg of closing work in progress in process 1 at the end of the week which is estimated to be 60% complete with regard to conversion cost. Process 2 Input Material P 19,800 kg @ GH¢2.5 per kg Material Y 12,600 kg @ GH¢1.5 per kg Additives GH¢1,800 Labour 1,480 hours @ GH¢3 per hour Normal loss 5% of input Output 56,000 kg There was no opening WIP but there 3,000 kg in process 2 at the end of the week which is estimated to be 50% complete with…Q7. Suppose a company manufactures and sells a chemical product. The company processes the product in two departments. The March production data for Department B is: Beginning WIP 0 Units started this period 11,000 Units completed and transferred 9,000 Ending WIP units 2,000 Direct materials $1,100 Direct labor $2,880 Applied overhead $8,880 a) Show the physical flow of units. The 2,000 units in ending inventory are 40% complete as to conversion costs. b) Calculate the equivalent units for materials, labor and overhead. Hint: Show both materials and conversion.problem 5 Marites Company employs standard absorption system for product costing. The standard cost of this product is as follows: Raw Materials – P14.50; Direct Labor for 2 hours @ P8/hr is P16; Manufacturing overhead for 2 hours @ P11/hr is P22. The total cost/unit (14.50+16+22) = P52.50. The manufacturing overhead rate is based upon normal annual activity level of 600,000 direct labor hours. The company planned to produce 25,000 units each month during 2020. Budgeted factory overhead for 2020 is composed of P3,600,000 variable and P3,000,000 fixed. During April 2021, 26,000 units of product were produced using 53,500 direct labor hours at a cost of P433,350. Actual manufacturing overhead for the month was P260,000 fixed and P315,000 variable. The total manufacturing overhead applied during April was P572,000. The variable overhead spending variance must be: