Question Content Area Jensen Company reports the following: Line Item Description Amount Direct materials used $345,000 Direct labor incurred 250,000 Factory overhead incurred 400,000 Operating expenses 175,000 Jensen Company’s product costs are a. $995,000 b. $770,000 c. $825,000 d. $920,000
Q: net cash flow from
A: The cash flow statement is a financial statement which shows the inflow and outflow of cash of the…
Q: Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expense…
A: The cash budget is prepared to find the excess or deficit cash balance at the end of a period. The…
Q: Question Content Area The supplies account had a balance of $891 at the beginning of the year and…
A: The objective of the question is to calculate the supplies expense to be reported on the income…
Q: Cheyenne Company manufactures a single product by a continuous process involving two production…
A: Journal entries are the primary reporting of the business transactions in the books of accounts.…
Q: Nardin Outfitters has a capacity to produce 16,500 of their special arctic tents per year. The…
A: The differential analysis is performed to compare the different alternatives available to the…
Q: Based on the information provided above, provide the correct summary journal entries for actual and…
A: Journal entries are prepared by ensuring that the double-entry bookkeeping principle is used. This…
Q: Inventory data for Bramble Company are reported as follows. Date June 1 12 23 30 Explanation Units…
A: Inventory Valuation Methods are methods of valuation of inventory.There are three methods of…
Q: Audit Procedures for Foreign Currency Transactions: Foreign currency transactions are common in…
A: A) Review of Transaction Documentation: This procedure involves examining transaction documents to…
Q: Date Oct. 1 Oct. 9 Oct. 17 Oct. 11 Sale Oct. 22 Oct. 25 Description Beginning inventory Purchase…
A: 34.734 dollars Explanation:
Q: orward? Any § 179 amount in excess of business income / the asset acquisition cost limitation is…
A: Any § 179 amount in excess of taxable income is carried forward to future taxable years and added to…
Q: Angela's Bakery paid $2,200 in dividends and $920 in interest this past year. Common stock increased…
A: Stockholders' equity means the net assets available to shareholders after deducting all the…
Q: A) B) "Flower Moon" Company's accounting records have been destroyed by fire. However, all the…
A: The Balance Sheet is a financial statement that includes assets, liabilities and stockholder's…
Q: Hi-Tek Manufacturing, Incorporated, makes two industrial component parts-B300 and T500. An…
A: Introduction: Costing system are divided into two types which are,(1) Traditional costing system(2)…
Q: Exercise 19-15 (Algo) Absorption costing and overproduction LO C1 A manufacturer reports direct…
A: ABSORPTION COSTINGAbsorption Costing is a Cost Management Accounting method in which all costs…
Q: The financial statements for Armstrong and Blair companies for the current year are summarized…
A: Ratio analysis is the process of comparing various line items in the financial statements to other…
Q: TB MC Qu. 11-67 (Static) Ms. Jessica Duffy purchased 1 share of $10 par value... Ms. Jessica Duffy…
A: Common Stock is a ledger used to record shares issued by a company. Shares may issued by the company…
Q: Bonita Industries had sales of $500000, variable costs of $580000, and direct fixed costs totaling…
A: Residual income measures the profit a company generates above its required return on invested…
Q: 20-26 JIT production, relevant benefits, relevant costs. The Knot manufactures men's neckwear at its…
A: The objective of the question is to calculate the net benefit or cost to The Knot if it adopts JIT…
Q: Use the following data from a company using a process costing system to answer the question below.…
A: Process costing:Process costing refers to the cost accounting method under which the cost of a…
Q: On June 4, 2023, Tricon Corporation, a calendar - year corporation, purchased and began operating…
A: Goodwill is an intangible asset that represents the excess of the purchase price over the fair value…
Q: On January 1, the Matthews Band pays $65,600 for sound equipment. The band estimates it will use…
A: The depreciation expense is charged on the fixed assets as reduction in the value of the fixed…
Q: Colby Limited is a manufacturing company whose total factory overhead costs fluctuate somewhat from…
A: The costs incurred for the production are classified as fixed and variable costs. The high low…
Q: Greer Utsey earned $49,100 in 2022 for a company in Kentucky. Greer is single with one dependent…
A: Payroll tax: A payroll tax is a tax withheld from an employee's salary by an employer who remits it…
Q: Materials and Labor Variances At the beginning of the year, Craig Company had the following standard…
A: Material variance, is divided into material price variance and material usage variance, measures the…
Q: Reardon Company leased an asset from Mackinac Company. Data: ● ● ● · . Five-year, noncancellable…
A: ROU stands for "Right-of-Use." A ROU asset, also known as a lease asset, represents the lessee's…
Q: On March 1, 2021, Gold Examiner receives $147,000 from a local bank and promises to deliver 100…
A: Journal entry records the accounting transactions of a business in a journal book. All the business…
Q: Crane Inc. had beginning inventory of $12,000 at cost and $19,600 at retail. Net purchases were…
A: Ending inventory is the amount of inventory that an entity has on hand at the end of the period. It…
Q: Question Content Area Use the adjusted trial balance for Stockton Company to answer the question…
A: The objective of the question is to determine the current assets of Stockton Company using the…
Q: ndraw from the partnership, le nt, when a partner withdraws ndent appraiser. The withdraw ng an…
A: General JournalAccounts & ExplanationDebit ($)Credit ($)Building110,000Matteson's…
Q: [The following information applies to the questions displayed below.] Bargain Rental Car wants to…
A: On the basis of cost behaviour, costs can be of three types: 1) Variable cost, 2) Fixed costs and 3)…
Q: Question Content Area The following accounts were taken from the Adjusted Trial Balance columns of…
A: Option (a) $8,960Explanation:Calculate the net income for the period using Excel as follows:Formula…
Q: A company sells a pizza for an average price of $20. They estimate that the cost of the material and…
A: The field of accounting known as cost accounting is utilized by manufacturing organizations to…
Q: Problem 6-2B (Algo) Calculate ending inventory, cost of goods sold, sales revenue, and gross profit…
A: First-in First-Out Method - Under the First-in First-Out Method company uses inventory in the…
Q: The City of South River budget for the fiscal year ended June 30, 2024, included an appropriation…
A: Budgets means estimates or forecasts made for future. This means quantitative expression for future…
Q: Required: 1. Prepare the journal entry to establish the petty cash fund. 2. Prepare a petty cash…
A: A journal entry is a record of a business deal in the accounting system of an organization. Journal…
Q: Lindell Company made direct materials purchases of $50,200 and $62,200 in September and October,…
A: The objective of the question is to calculate the total cash paid for purchases in October by…
Q: Rex loves to work with his hands and is very good at making small figurines. Three years ago, Rex…
A: It is the income of a taxpayer on which the revenue authorities will impose tax. Taxable is the…
Q: After closing the revenue and expense accounts, the profit for the year ended December 31, 2024, of…
A: Lets understand the basics. Partnership is an agreement between two or more person who works…
Q: Required information [The following information applies to the questions displayed below.] Clopack…
A: WEIGHTED AVERAGE METHOD :— Under this method, equivalent units are calculated by adding equivalent…
Q: [The following information applies to the questions displayed below.] The following information is…
A: The journal entries are prepared to record the transactions on a regular basis. The direct costs are…
Q: Duela Dent is single and had $179,200 in taxable income. Using the rates from Table 2.3, calculate…
A: Tax is the amount of money which is to be paid by the taxpayer to the appropriate tax authorities.…
Q: Estimating Bad Debts Expense and Reporting Receivables At December 31, Barber Company had a balance…
A: Accounts receivables are those customer accounts to whom business has made credit sales on account,…
Q: . Toolum Corporation began operations on January 1, 2020, and uses the average- cost method of…
A: The inventory can be valued using different methods as FIFO, LIFO and average method. FIFO stands…
Q: The Foundational 15 (Algo) [LO7-1, L07-2, LO7-3, L07-4, LO7-5] [The following information applies to…
A: Absorption costing, a method utilized in accounting involves assigning all production expenses. Both…
Q: Journalize the following merchandise transactions. Refer to the Chart of Accounts for exact wording…
A: Lets understand the basics.Journal entries refer to the recording of transactions in an appropriate…
Q: During the current year, merchandise is sold for $591,000. The cost of the goods sold is $366,420.…
A: Gross profit percentage is calculated by dividing gross profit by sales. Gross profit is the…
Q: Sunland Inc. had a bad year in 2024. For the first time in its history, it operated at a loss. The…
A: Break-even point (BEP):The break-even point refers to the point at which the sales revenue covers…
Q: Explain the departures an auditor can award a client from an unqualified audit report.
A: The concept of departures from an unqualified audit report involves situations where an auditor…
Q: Department G had 2,160 units 25% completed at the beginning of the period, 13,600 units were…
A: To calculate the total cost of the units started and completed during the period, we need to…
Q: Required: Compute Dow's earnings per share for the year ended December 31, 2021. (Do not round…
A: Earnings per share is a financial indicator that illustrates a company's profitability and value to…
-
Question Content Area
Jensen Company reports the following:
Line Item Description Amount Direct materials used $345,000 Direct labor incurred 250,000 Factory overhead incurred400,000 Operating expenses 175,000 Jensen Company’s product costs are
a. $995,000b. $770,000c. $825,000d. $920,000
Unlock instant AI solutions
Tap the button
to generate a solution
Click the button to generate
a solution
- 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. $20.000Communication The controller of New Wave Sounds Inc. prepared the following product profitability report for management, using activity-based costing methods for allocating both the factory overhead and the marketing expenses. As such, the controller has confidence in the accuracy of this report. Home Theater Speakers Wireless Speakers Wireless Headphones Total Sales 1,500,000 1,200,000 900,000 3,600,000 Cost of goods sold 1,050,000 720,000 810,000 2,580,000 Gross profit 450,000 480,000 90,000 1,020,000 Marketing expenses 600,000 120,000 72,000 792,000 Income from operations (150,000) 360,000 18,000 228,000 In addition, the controller interviewed the vice president of marketing, who provided the following insight into the company's three products: The home theater speakers are an older product that is highly recognized in the marketplace. The wireless speakers are a new product that was just recently bunched. The wireless headphones are a new technology that has no competition in the marketplace, and it is hoped that they will become an important future addition to the companys product portfolio. Initial indications are that the product is well received by customers. The controller believes that the manufacturing costs for all three products are in line with expectations. Based on the information provided: 1. Calculate the ratio of gross profit to sales and the ratio of income from operations to sales for each product. 2. Write a brief (one page) memo using the product profitability report and the calculations in (1) to make recommendations to management with respect to strategies for the three products.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?
- Question Content Area Compute conversion costs given the following data: direct materials, $376,200; direct labor, $200,400; factory overhead, $179,400 and selling expenses, $48,400. a. $555,600 b. $131,000 c. $756,000 d. $379,800Eddie Company had the following data available:Direct materials purchased on account P74,000Direct materials requisitioned P41,000Direct-labor cost incurred P65,000Factory overhead incurred P77,000Factory overhead applied P85,000Work in process is increased by _____. a) P334,250 b) P191,000 c) P179,000 d) P139,000Question 1 options: Answer the following two questions using the information below:Preston Manufacturing uses a normal cost system and had the following actual data available for 20X5:Ending direct materials inventory $10,000Beginning WIP inventory 64,000Beginning finished goods inventory 58,000Direct materials purchased on account $ 70,000Direct materials used or requisitioned 90,000Direct labor cost incurred 130,000Factory overhead incurred (actual) 190,000Overhead is applied at 150 percent (1.5) of direct-labor costCost of goods manufactured 405,000Cost of goods sold 460,000The beginning balance of direct materials inventory must be: (HINT: use T-Accounts to solve)(Include "$" and "," (commas) in your answers.The ending balance of work-in-process inventory (before closing the manufacturing overhead accounts) must be:…
- Direct materials issued to production $170,000Indirect materials issued to production $45,000Other manufacturing overhead $255,000Overhead allocated $240,000Direct labour costs $80,000 Is the manufacturing overhead under- or over-applied? By how much?Choose the correct letter of answer materials used, P500,000; labor cost, 60% of raw materials used; overhead, 30% of raw materials used; administrative and selling expenses, 40% of labor cost. The total period cost is equivalent to: a. P 120,000b. P890,000c. P800,000d. P590,000QuestionQ# 1: Accounting for Manufacturing Concern The following data from the just completed year are taken from the accounting records of KentonCompany:Sales $ 975,000Direct labor cost $ 165,000Raw material purchases $ 229,000Selling expense $ 48,750Administrative expenses $ 146,250Manufacturing overhead applied to work in process $ 180,000Actual manufacturing overhead costs $ 175,050Inventories: Beginning EndingRaw materials $ 18,000 $ 17,500Work in process $ 20,000 $ 14,750Finished goods $ 9,000 $ 11,000Required:1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in productionwere direct materials.2. Prepare a schedule of cost of goods sold. Assume that the company’s underapplied or overappliedoverhead is closed to Cost of Goods Sold.3. Prepare an income statement
- Subject: Cost management & accounting Q.1Direct Material = Rs. 50,000Direct Labour = 75,000Rent (Factory) = 5,000Fuel & Power = 2,000Rent (Office) = 3,000Utility (Factory) = 3,000Utility (Office) = 1,500Factory Supervisor Salary = 5,000Depreciation( Machines = 2,000Indirect Material = 10,000Indirect Labour = 5,000Compute: i) Prime Cost ii) Factory Over Head iii) Factory Cost iv) Conversion CostInventories: March 1 March 31Raw material P18,000 P15,000Work in process 9,000 6,000Finished goods 27,000 36,000Additional information for March:Raw material purchased P42,000Direct labor payroll 30,000Direct labor rate per hour 7.50Overhead rate per direct labor hour 10.00 Required a. prime cost incurred b.conversion cost incurred c. Cost of Goods ManufacturedSubject: Cost management & accounting Q.3 Compute Factory Cost:Direct Material = Rs. 50,000Conversion Cost = 150,000Prime Cost = 100,000 Q.4 Compute Factory Cost:Prime Cost = Rs. 250,000Direct Material = 100,000Conversion Cost = 380,000 Q.5 Compute: i) Prime Cost ii) Factory CostMaterial = Rs. 75,000 ( 80% Direct )Labour = 100,000 ( 20 % Indirect )Conversion Cost = 180,000 (Indirect Material and Labour are included)