Required: 2 points each 1. Compute prime cost 2. Compute conversion cost 3. Compute total production cost 4. Compute total period cost 5. If the selling price is Php 50.00 compute net income
Q: Reasons ot Motives of holding cash
A: Holding Cash: When a person or organisation holds cash, it refers to money that is kept immediately ...
Q: Problem 11-1 An office building has three floors of rentable space with a single tenant on each floo...
A: note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question...
Q: Presented below are incomplete financial statements for Marta Communications Company. Required: Solv...
A: Net Income = Revenue - Expenses Capital , Ending balance = Capital , Beginning balance + Net Income ...
Q: A company pays its employees $3,700 each Friday, which amounts to $740 per day for the five-day work...
A: Salaries earned but unpaid = Number of working days worked * Rate per day Rate / amount per day = $ ...
Q: Fill in the blanks in the following separate Income statements a through e. (Amounts to be deducted ...
A: Solution: Income statement is one of the financial statement of company that shown income and expend...
Q: Share capital, P5 par 600,000 shares authorized, 200,000 shares issued and outstanding Share premium...
A: Solution Concept Reacquisition of share to be held as treasury does not affect the retained earnings...
Q: What amount was reported as net income for the current year? A. 6,200,000 B. 9,700,000 C. 8,200,000...
A: Accounting equation of the business says that, total assets in the business, must be equal to total ...
Q: The records of Brenda Corporation at December 31, 2021 showed the following balances: Uncollectible...
A: Operating expenses are the indirect expenses incurred in the course of the main operations of the en...
Q: Ronald Partners is negotiating with its audit client (Maxim Industries) for its upcoming audit fees....
A: There are several auditing companies that provide non-audit services as well like tax consultancy, m...
Q: The following information is for ChiSox corporation DM 100 DL 80 Insurance - Factory 24 Insurance - ...
A: Conversion cost is the sum of all direct labor and manufacturing overheads. In the problem above, ...
Q: You are the auditor of Birham Ltd and are in the process of completing the audit for the year ended ...
A: Management’s written representation refers to the written document which is provided to the auditor ...
Q: or the year ended December 31, a company has revenues of $332,000 and expenses of $203,500. The comp...
A: The closing entries are prepared to close the temporary accounts of the business. The temporary acco...
Q: ENOLA HOLMES Company provided the following information at year end: Share premium Accounts payable ...
A: Shareholders Equity: It is important to understand that shareholders' equity (also known as corporat...
Q: Which is not a forensic-type certificate? A. FASNA. B. CFE. C. CRFAC. D. MAFF.
A: Forensic type certificates are the courses which allows someone to become forensic accountant. There...
Q: MOWGLI Company provided the following information for the year ended December 31, 2021. Contribution...
A: 1. Income Statement - This statement shows the income earned and loss incurred by the organization i...
Q: *The sinking fund factor is the reciprocal of the uniform-series compound amount factor. True False
A: The sinking fund factor is the reciprocal of the uniform-series compound annual factor. Uniform-seri...
Q: vided ¼ lb of grain per hen per day. You get your grain from a local feed cooperative – a 16%-layer ...
A: 1. Grain needed in a year = 1/4 lb x 40000 hens x 365 =3650000lb = 1825 tons 2. Cost of grain...
Q: information is not specifically a required disclosure in relation to financial statements
A: A financial statement indicating the formal records of financial activities of an entity. it helps t...
Q: Record adjusting journal entries for each separate case below for year ended December 31. Assume no ...
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in...
Q: Hyundai Company has a relevant range of production between 10,000 and 20,000 units. The following co...
A: Formula: Variable cost per unit = Direct materials + Direct labor + Variable manufacturing overhead
Q: in 2023. II. Based upon the transaction above, determine the amount of current liabilities on Decemb...
A: The question pertains to warranty liability. Warranty liability is a constructive liability incurred...
Q: Locky Privetra is considering investing in Sea Lounge Ltd (SLL), a large cruise ship company. Locky ...
A: Here related with the fact of Audit opinion and assurance which are provided by the auditors to fina...
Q: Chuzzle Company used the direct method to prepare the statement of cash flows. The entity had the fo...
A: The cash flow statement is prepared to record the cash flow from various activities during the perio...
Q: The assets of a company total $738,000; the liabilities, $219,000. What is the amount of equity? Mul...
A: Assets Assets are resources that are controlled which results from prior transactions that are expec...
Q: Tim’s Tailor Shoppe has the following coverages: CGL - $500,000 Excess Policy $2,000,000, AB...
A: Ans D) d) $500,000 CGL and $250,000 Excess As mentioned in the question, there is an excess policy ...
Q: A company had revenues of $63,000 and expenses of $47,750 for the accounting period. Dividends of $6...
A: Closing Entries are those entries that are made at the end of the year to close all temporary accoun...
Q: Ronald Partners is negotiating with its audit client (Maxim Industries) for its upcoming audit fees....
A: Ronald Partners, here, is not only an audit company but also a provider of tax consultancy services....
Q: Marilyn Terrill is the senior auditor for the audit of Uden Supply Company for the year ended Decemb...
A: An income statement is a financial report that indicates the revenue and expenses of a business. It ...
Q: What amount should be reported as total current assets at December 31, 2021? a. 17,000,000 b. 17,50...
A: Solution Concept Current asset are the assets which are expected to be realized within a period of ...
Q: What will i do for the liquidation expense stated in the problem related to parnership liquidation i...
A: After receiving each installment from partners, Liquidation expenses is to be deducted before making...
Q: On December 1, Milton Company borrowed $390,000, at 7% annual interest, from the Tennessee National ...
A: Interest amount from December 1 to December 31 i.e. 1 month = 390,000 x 7% x 1 month/12 months ...
Q: Locky Privetra is considering investing in Sea Lounge Ltd (SLL), a large cruise ship company. Locky ...
A: An auditor is a person with the authority to examine and verify financial documents for authenticity...
Q: QS 2-6 Analyzlng transactlons and preparing Journal entrles LO P1 For each transaction, (1) analyze ...
A: Accounting is the process of analyzing the information in the transactions that take place during a ...
Q: 3. What accounting principle is being violated in the following: a. The owner mixed up his personal ...
A: a.) Economic or business entity concept is violated - as per business entity concept the transaction...
Q: Adriana Graphic Design recelves $2,150 from a client billed in a previous month for services provide...
A: Journal entry - It refers to the process where the business transactions are recorded in the books o...
Q: Use the above adjusted trial balance to prepare Wilson Trucking Company's classified balance sheet a...
A: Solution Working note for retained earnings Net income Trucking fees earned 120000 ...
Q: receipts from repayment of loan made to another entity payments for wages and other operating expens...
A:
Q: JFC Corporation values its inventory by using retail method: 1. How much is the ending inventory at...
A: Retail Inventory Method Retail inventory method which is used to measure the merchandise inventory w...
Q: Wiremold tracks the direct materials in inventory. At the end of their most recent month, the direct...
A: Raw material inventory 920000 x 7/20 = 322000 WIP raw material. 920000x2/20. = 92000 Cost ...
Q: Galway Plc manufactures and sells a single product. The following budgeted/ actual information is pr...
A: An income statement is a financial report that indicates the revenue and expenses of a business. It ...
Q: Presented below is selected data from the financial statements of Morgan Corporation for the current...
A: The debt ratio is a financial ratio that tells about the percentage of total assets of company with ...
Q: If assets are $348,000 and liabilities are $188,000, then equity equals: Multiple Choice 6 Ints S 02...
A: Answer:- Equity = Assets - Liabilities =$ 348,000 - $188,000 = $ 160,000
Q: 1. Prepare income statements for both Garcon Company and Pepper Company. 2. Prepare the current asse...
A: Statement of income shows all the income(s) earned by the organization. Cash balance shows the accou...
Q: recast Sales Volume and Sales Budget For 20Y8, Raphael Frame Company prepared the sales budget that...
A: Solution 1 Unit Sales,Year Ended 20Y8 Increase (Decrease)Actual Over Budget Budg...
Q: A subsidiary is an entity that: Select one: a. Is controlled by another entity. b. Exercises c...
A: Subsidiary Company - Subsidiary Company is control by another company.
Q: Particulars Particulars 6,000 Sundry creditors Bills receivable 25,000 Bills payable 4,000 Stock 45,...
A: Statement of affairs which was prepared by the entity contains the total assets and liabilities incl...
Q: Goodwill of a firm is to be valued at two years' purchase of three years' average profits. The profi...
A: Lets understand the basics. Goodwill is a intangible asset. It is a established reputation of the en...
Q: HELL'S KITCHEN Company has the following accounts information for the year ended December 31, 2021. ...
A: The total assets of the business comprises of current assets (cash, account receivables, inventory, ...
Q: Tripeaks Company used the accrual basis of accounting: December 31 January 1 8,000,000 100,000 7,500...
A: Accrual basis: Under accrual basis accounting, revenue and expenses are recognized when they are inc...
Q: Fragmental Co. leased a portion of its store to another company for eight months beginning on Octobe...
A: Unearned Revenue: Unearned Revenue means money received from the customer in advance for the service...
Step by step
Solved in 2 steps
- Cost Classification Loring Company incurred the following costs last year: Required: 1. Classify each of the costs using the following table format. Be sure to total the amounts in each column. Example: Direct materials, 216,000. 2. What was the total product cost for last year? 3. What was the total period cost for last year? 4. If 30,000 units were produced last year, what was the unit product cost?What is the conversion cost to manufacture insulated travel cups if the costs are: direct materials, $17,000; direct labor, $33,000; and manufacturing overhead, $70,000? A. $16,000 B. $50,000 C. $103,000 D. $120000Crafts 4 All has these costs associated with production of 12,000 units of accessory products: direct materials, $19; direct labor, $30; variable manufacturing overhead, $15; total fixed manufacturing overhead, $450,000. What is the cost per unit under both the variable and absorption methods?
- Natur-Gro, Inc., manufactures composters. Based on past experience, Natur-Gro has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 264,000 + 1.42X, where X equals number of composters. Last year, Natur-Gro produced 30,000 composters. Actual overhead costs for the year were as expected. Total overhead for per unit was a. 1.42 b. 8.80 c. 11.63 d. 10.22Algers Company produces dry fertilizer. At the beginning of the year, Algers had the following standard cost sheet: Algers computes its overhead rates using practical volume, which is 54,000 units. The actual results for the year are as follows: a. Units produced: 53,000 b. Direct materials purchased: 274,000 pounds at 2.50 per pound c. Direct materials used: 270,300 pounds d. Direct labor: 40,100 hours at 17.95 per hour e. Fixed overhead: 161,700 f. Variable overhead: 122,000 Required: 1. Compute price and usage variances for direct materials. 2. Compute the direct labor rate and labor efficiency variances. 3. Compute the fixed overhead spending and volume variances. Interpret the volume variance. 4. Compute the variable overhead spending and efficiency variances. 5. Prepare journal entries for the following: a. The purchase of direct materials b. The issuance of direct materials to production (Work in Process) c. The addition of direct labor to Work in Process d. The addition of overhead to Work in Process e. The incurrence of actual overhead costs f. Closing out of variances to Cost of Goods SoldProduction 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?
- The following product costs are available for Kellee Company on the production of eyeglass frames: direct materials, $32,125; direct labor, $23.50; manufacturing overhead, applied at 225% of direct labor cost; selling expenses, $22,225; and administrative expenses, $31,125. The direct labor hours worked for the month are 3,200 hours. A. What are the prime costs? B. What are the conversion costs? C. What is the total product cost? D. What is the total period cost? E. If 6.425 equivalent units are produced, what is the equivalent material cost per unit? F. What is the equivalent conversion cost per unit?A production department within a company received materials of $7,000 and conversion costs of $5,000 from the prior department. It added material of $78400 and conversion costs of $47000. The equivalent units are 5,000 for material and 4,000 for conversion. What is the unit cost for materials and conversion?Roper Furniture manufactures office furniture and tracks cost data across their process. The following are some of the costs that they incur. Classify these costs as fixed or variable costs, and as product costs or period costs. Wood used to produce desks ($125,00 per desk) Production labor used to produce desks ($15 per hour) Production supervisor salary ($45,000 per year) Depreciation on factory equipment ($60,000 per year) Selling and administrative expenses ($45,000 per year) Rent on corporate office ($44,000 per year) Nails, glue, and other materials required to produce desks (varies per desk) Utilities expenses for production facility Sales staff commission (5% of gross sales)
- SmokeCity, Inc., manufactures barbeque smokers. Based on past experience, SmokeCity has found that its total annual overhead costs can be represented by the following formula: Overhead cost = 543,000 + 1.34X, where X equals number of smokers. Last year, SmokeCity produced 20,000 smokers. Actual overhead costs for the year were as expected. Required: 1. What is the driver for the overhead activity? 2. What is the total overhead cost incurred by SmokeCity last year? 3. What is the total fixed overhead cost incurred by SmokeCity last year? 4. What is the total variable overhead cost incurred by SmokeCity last year? 5. What is the overhead cost per unit produced? 6. What is the fixed overhead cost per unit? 7. What is the variable overhead cost per unit? 8. Recalculate Requirements 5, 6, and 7 for the following levels of production: (a) 19,500 units and (b) 21,600 units. (Round your answers to the nearest cent.) Explain this outcome.Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?Brody Company makes industrial cleaning solvents. Various chemicals, detergent, and water are mixed together and then bottled in 10-gallon drums. Brody provided the following information for last year: Last year, Brody completed 100,000 units. Sales revenue equaled 1,200,000, and Brody paid a sales commission of 5 percent of sales. Required: 1. Calculate the direct materials used in production for last year. 2. Calculate total prime cost. 3. Calculate total conversion cost. 4. Prepare a cost of goods manufactured statement for last year. Calculate the unit product cost. 5. Prepare a cost of goods sold statement for last year. 6. Prepare an income statement for last year. Show the percentage of sales that each line item represents.